UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

________________

FORM 10-Q



(Mark One)
þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended ~~September~~June 30, ~~2018~~2019
OR
¨	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: 814-00939

________________

HMS Income Fund, Inc.

(Exact Name of Registrant as Specified in its Charter)



Maryland (State or Other Jurisdiction of Incorporation or Organization)	45-3999996 (I.R.S. Employer Identification No.)

2800 Post Oak Boulevard, Suite 5000 Houston, Texas (Address of Principal Executive Offices)	77056-6118 (Zip Code)

(888) 220-6121

(Registrant’s telephone number, including area code)

Not applicable

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

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



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

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 þ No o

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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 12b-2 of the Exchange Act (Check one):



Large accelerated filer o	Accelerated filer o	Non-accelerated filer þ	Smaller reporting company o	Emerging growth company o

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. o

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

The issuer had ~~79,147,572~~79,044,802 shares of common stock outstanding as of ~~November 13, 2018.~~August 12, 2019.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION



Item 1.	Condensed Consolidated Financial Statements:
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Changes in Net Assets	3
	Condensed Consolidated Statements of Cash Flows	4
	Condensed Consolidated Schedules of Investments	5
	Notes to the Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3734
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	6154
Item 4.	Controls and Procedures	6255

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	6356
Item 1A.	Risk Factors	6356
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6356
Item 3.	Defaults Upon Senior Securities	6356
Item 4.	Mine Safety Disclosures	6356
Item 5.	Other Information	6356
Item 6.	Exhibits	6457

Signatures		6558

PART I — FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

HMS Income Fund, Inc.

Condensed Consolidated Balance Sheets

(dollars in thousands, except share and per share amounts)


	September 30, 2018			December 31, 2017			June 30, 2019			December 31, 2018
	(Unaudited)						(Unaudited)
ASSETS
Portfolio investments at fair value:
Non-Control/Non-Affiliate investments (amortized cost: $944,195 and $948,029 as of September 30, 2018 and December 31, 2017, respectively)	$	933,953		$	922,898
Affiliate investments (amortized cost: $131,355 and $71,708 as of September 30, 2018 and December 31, 2017, respectively)	140,798			76,862
Control investments (amortized cost: $45,493 and $44,592 as of September 30, 2018 and December 31, 2017, respectively)	55,571			49,679
Total portfolio investments (amortized cost: $1,121,043 and $1,064,329 as of September 30, 2018 and December 31, 2017, respectively)	1,130,322			1,049,439
Non-Control/Non-Affiliate investments (amortized cost: $918,757 and $932,495 as of June 30, 2019 and December 31, 2018, respectively)							$	885,651		$	901,518
Affiliate investments (amortized cost: $139,445 and $143,372 as of June 30, 2019 and December 31, 2018, respectively)							150,459			149,323
Control investments (amortized cost: $15,734 and $45,821 as of June 30, 2019 and December 31, 2018, respectively)							32,138			55,727
Total portfolio investments (amortized cost: $1,073,936 and $1,121,688 as of June 30, 2019 and December 31, 2018, respectively)							1,068,248			1,106,568

Cash and cash equivalents	23,728			45,791			20,667			21,757
Interest receivable	9,204			8,638			8,364			9,292
Receivable for securities sold	17,347			4,959			—			918
Prepaid and other assets	3,647			4,072			4,258			4,038
Deferred financing costs (net of accumulated amortization of $1,309 and $309 as of September 30, 2018 and December 31, 2017, respectively)	5,169			6,163
Deferred financing costs (net of accumulated amortization of $2,316 and $1,642 as of June 30, 2019 and December 31, 2018, respectively)							4,189			4,857
Total assets	$	1,189,417		$	1,119,062		$	1,105,726		$	1,147,430

LIABILITIES
Accounts payable and other liabilities	$	1,329		$	1,459		$	2,277		$	2,456
Stockholder distributions payable	4,527			4,772			4,521			4,676
Base management fees payable	5,904			5,682
Base management and incentive fees payable							6,964			5,854
Due to affiliates	38			59			54			57
Directors’ fees payable	27			17			70			21
Payable for securities purchased	16,857			29,284			5,466			—
Credit facilities payable	510,000			430,000			458,000			509,000
Total liabilities	538,682			471,273			477,352			522,064

Commitments and Contingencies (Note 12)
Commitments and Contingencies (Note 13)

NET ASSETS
Common stock, $.001 par value; 150,000,000 shares authorized, 78,616,770 and 79,511,731 issued and outstanding as of September 30, 2018 and December 31, 2017, respectively	79			80
Common stock, $.001 par value; 150,000,000 shares authorized, 78,530,056 and 78,584,824 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively							79			79
Additional paid-in capital	678,579			685,593			678,175			678,627
Accumulated distributions in excess of net investment income	(36,653		)	(22,660		)
Net unrealized depreciation on investments	8,730			(15,224		)
Total accumulated earnings (loss)							(49,880		)	(53,340		)
Total net assets	650,735			647,789			628,374			625,366

Total liabilities and net assets	$	1,189,417		$	1,119,062		$	1,105,726		$	1,147,430

Net asset value per share	$	8.28		$	8.15		$	8.00		$	7.96

See notes to the condensed consolidated financial statements.

HMS Income Fund, Inc.

Condensed Consolidated Statements of Operations

(dollars in thousands, except share and per share amounts)

(Unaudited)


	Three Months Ended						Nine Months Ended						Three Months Ended						Six Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017			June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
INVESTMENT INCOME:
From non-control/non-affiliate investments:
Interest income	$	25,753		$	22,752		$	71,635		$	67,852		$	23,298		$	22,495		$	46,797		$	42,752
Fee income	748			145			1,669			1,682			118			653			425			921
Dividend income	268			188			797			572			859			226			1,186			529
From affiliate investments:
Interest income	2,359			1,307			6,312			3,408			2,202			2,189			4,804			3,953
Fee income	16			53			118			156			25			53			62			102
Dividend income	843			582			1,870			1,563			638			552			1,034			1,027
From control investments:
Interest income	151			164			463			502			144			156			267			312
Fee income	17			15			52			56			18			18			35			35
Dividend income	709			125			2,057			452			1,346			653			3,199			1,348
Total interest, fee and dividend income	30,864			25,331			84,973			76,243
Total investment income													28,648			26,995			57,809			50,979
EXPENSES:
Interest expense	6,626			5,004			17,861			13,342			6,621			6,107			13,728			11,235
Base management and incentive fees	9,135			5,648			20,720			18,419			6,964			5,737			14,089			11,431
Internal administrative services expenses	623			694			2,044			2,228			740			617			1,498			1,421
Offering costs	101			881			308			1,679			96			104			191			207
Professional fees	124			141			539			465			384			147			700			415
Insurance	47			47			143			143			48			48			96			96
Other general and administrative	511			509			1,447			1,128			540			493			1,056			936
Expenses before fee and expense waivers	17,167			12,924			43,062			37,404			15,393			13,253			31,358			25,741
Waiver of incentive fees	(3,231		)	—			(3,385		)	(2,318		)
Waiver of internal administrative services expenses	(623		)	(694		)	(2,044		)	(2,228		)	(740		)	(617		)	(1,498		)	(1,421		)
Total expenses, net of fee and expense waivers	13,313			12,230			37,633			32,858			14,653			12,636			29,860			24,320
Net investment income before taxes	17,551			13,101			47,340			43,385			13,995			14,359			27,949			26,659
Income tax expense (benefit), including excise tax	(226		)	61			(29		)	139
Income tax expense, including excise tax													101			95			159			197
NET INVESTMENT INCOME	17,777			13,040			47,369			43,246			13,894			14,264			27,790			26,462
NET REALIZED GAIN (LOSS) ON INVESTMENTS
Non-Control/Non-Affiliate investments	(8,845		)	(227		)	(20,668		)	2,408			559			(536		)	(1,072		)	(8,693		)
Affiliate investments	(9		)	951			903			951			242			—			(5,266		)	912
Control investments	—			—			—			—			(598		)	—			(598		)	—
Total realized gain (loss) on investments	(8,854		)	724			(19,765		)	3,359
Total net realized gain (loss) on investments													203			(536		)	(6,936		)	(7,781		)
NET REALIZED INCOME	8,923			13,764			27,604			46,605			14,097			13,728			20,854			18,681
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
Non-Control/Non-Affiliate investments	7,391			(5,533		)	14,707			(9,663		)	(6,155		)	(2,147		)	(1,824		)	7,316
Affiliate investments	3,378			(48		)	4,258			1,824			811			388			4,437			880
Control investments	4,088			531			4,990			674			3,023			253			7,129			902
Total net change in unrealized appreciation (depreciation) on investments	14,857			(5,050		)	23,955			(7,165		)	(2,321		)	(1,506		)	9,742			9,098
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	23,780		$	8,714		$	51,559		$	39,440		$	11,776		$	12,222		$	30,596		$	27,779
PER SHARE INFORMATION - BASIC AND DILUTED
NET INVESTMENT INCOME PER SHARE	$	0.23		$	0.16		$	0.60		$	0.56		$	0.17		$	0.18		$	0.35		$	0.33
NET REALIZED INCOME PER SHARE	$	0.12		$	0.18		$	0.35		$	0.61		$	0.17		$	0.17		$	0.26		$	0.23
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)	$	0.30		$	0.11		$	0.65		$	0.51		$	0.15		$	0.16		$	0.39		$	0.35
DISTRIBUTIONS DECLARED PER SHARE	$	0.17		$	0.17		$	0.52		$	0.52
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED	78,982,226			78,807,225			79,383,151			76,899,096			78,793,480			79,330,060			78,806,540			79,586,935

See notes to the condensed consolidated financial statements.

HMS Income Fund, Inc.

Condensed Consolidated Statements of Changes in Net Assets

(dollars in thousands, except share and per share amounts)

(Unaudited)


							Three Months Ended						Six Months Ended
	Nine Months Ended September 30, 2018			Nine Months Ended September 30, 2017			June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Change in Net Assets from Operations:
Net investment income	$	47,369		$	43,246		$	13,894		$	14,264		$	27,790		$	26,462
Net realized gain (loss) on investments	(19,765		)	3,359			203			(536		)	(6,936		)	(7,781		)
Net change in unrealized appreciation (depreciation) on investments	23,955			(7,165		)	(2,321		)	(1,506		)	9,742			9,098
Net increase in net assets resulting from operations	51,559			39,440			11,776			12,222			30,596			27,779

Change in Net Assets from Stockholders’ Distributions:
Distributions from net investment income	(41,596		)	(36,911		)
Distributions from net realized gain on investments	—			(3,359		)
Net decrease in net assets resulting from stockholders’ distributions	(41,596		)	(40,270		)	(13,754		)	(13,855		)	(27,360		)	(27,658		)

Change in Net Assets from Capital Share Transactions:
Issuance of common stock, net of issuance costs	—			42,366
Reinvestment of stockholder distributions	20,550			20,594			6,369			6,890			12,735			13,819
Repurchase of common stock	(27,567		)	(14,018		)	(6,410		)	(10,154		)	(12,963		)	(19,560		)
Net increase (decrease) in net assets resulting from capital share transactions	(7,017		)	48,942
Net decrease in net assets resulting from capital share transactions							(41		)	(3,264		)	(228		)	(5,741		)

Total Increase in Net Assets	2,946			48,112
Total Increase (Decrease) in Net Assets							(2,019		)	(4,897		)	3,008			(5,620		)
Net Assets at beginning of the period	647,789			597,833			630,393			647,066			625,366			647,789
Net Assets at end of the period	$	650,735		$	645,945		$	628,374		$	642,169		$	628,374		$	642,169

NAV per share at end of the period	$	8.28		$	8.16		$	8.00		$	8.15		$	8.00		$	8.15
Distributions declared per share							$	0.18		$	0.18		$	0.35		$	0.35

Common shares outstanding, beginning of the period	79,511,731			73,382,971			78,547,196			79,201,065			78,584,824			79,511,731
Issuance of common shares	—			5,063,398
Issuance of common shares pursuant to distribution reinvestment plan	2,477,245			2,466,862			786,100			830,233			1,568,643			1,666,634
Repurchase of common shares	(3,372,206		)	(1,708,271		)	(803,240		)	(1,242,891		)	(1,623,411		)	(2,389,958		)
Common shares outstanding, end of the period	78,616,770			79,204,960			78,530,056			78,788,407			78,530,056			78,788,407

See notes to the condensed consolidated financial statements.

HMS Income Fund, Inc.

Condensed Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)


	Nine Months Ended September 30, 2018			Nine Months Ended September 30, 2017			Six Months Ended June 30, 2019			Six Months Ended June 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	51,559		$	39,440		$	30,596		$	27,779
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Adjustments to reconcile net increase in net assets resulting from operations to net cash generated from (used in) operating activities:
Principal repayments received and proceeds from sales of investments in portfolio companies	386,110			370,941			191,462			243,113
Investments in portfolio companies	(476,524		)	(470,875		)	(138,818		)	(314,312		)
Net change in unrealized (appreciation) depreciation on portfolio investments	(23,955		)	7,165
Net realized (gain) loss on sale of portfolio investments	19,765			(3,359		)
Net change in unrealized (appreciation) on portfolio investments							(9,742		)	(9,098		)
Net realized loss on sale of portfolio investments							6,936			7,781
Amortization of deferred financing costs	1,000			1,013			674			667
Amortization of deferred offering costs	308			1,679			191			207
Accretion of unearned income	(11,429		)	(10,793		)	(4,054		)	(4,286		)
Net payment-in-kind interest accrual	(977		)	(897		)	(2,365		)	(483		)
Changes in other assets and liabilities:
Interest receivable	(566		)	(2,448		)	928			633
Prepaid and other assets	1,949			(390		)	638			(528		)
Base management fees payable	222			628
Base management and incentive fees payable							1,110			55
Due to affiliates	(21		)	(83		)	(3		)	(13		)
Directors’ fees payable	10			12			49			26
Accounts payable and other liabilities	(348		)	285			242			143
Payable for unsettled trades	—			(780		)
Net cash used in operating activities	(52,897		)	(68,462		)
Net cash generated from (used in) operating activities							77,844			(48,316		)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	—			46,041
Redemption of common stock	(27,567		)	(14,018		)	(12,963		)	(19,560		)
Payment of selling commissions and dealer manager fees	—			(3,511		)
Payment of offering costs	(308		)	(959		)	(191		)	(207		)
Payment of stockholder distributions	(21,291		)	(19,465		)	(14,780		)	(14,075		)
Repayments on credit facilities payable	(279,000		)	(339,000		)	(108,000		)	(169,000		)
Proceeds from credit facilities payable	359,000			416,000			57,000			243,000
Payment of deferred financing costs	—			(636		)
Net cash generated from financing activities	30,834			84,452
Net cash generated from (used in) financing activities							(78,934		)	40,158

Net increase (decrease) in cash and cash equivalents	(22,063		)	15,990
Net decrease in cash and cash equivalents							(1,090		)	(8,158		)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	45,791			23,719			21,757			45,791

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$	23,728		$	39,709		$	20,667		$	37,633

See notes to the condensed consolidated financial statements.


HMS Income Fund, Inc. Consolidated Schedule of Investments	HMS Income Fund, Inc. Consolidated Schedule of Investments									HMS Income Fund, Inc. Consolidated Schedule of Investments
As of September 30, 2018
As of June 30, 2019										As of June 30, 2019
(dollars in thousands)
Portfolio Company (1) (3)	Business Description	Type of Investment (2) (3)	Index Rate (22)	Principal (7)		Cost (7)		Fair Value (26)		Business Description	Type of Investment (2) (3)	Index Rate (22)	Principal (7)		Cost (7)		Fair Value (26)

Control Investments (6)
Copper Trail Energy Fund I, LP (9) (15)	Investment Partnership	LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.1%) (16)	—	$	—	$	3,246	$	3,473
CTMH, LP (9) (15)	Investment Partnership	LP Interests (CTMH, LP) (Fully diluted 38.8%)	—	—		872		872		Investment Partnership	LP Interests (CTMH, LP) (Fully diluted 38.8%)	—	$	—	$	872	$	872
GRT Rubber Technologies, LLC (10) (13)	Manufacturer of Engineered Rubber Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity - December 19, 2019) (8)	1 month LIBOR	4,975		4,940		4,975		Manufacturer of Engineered Rubber Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.44%, Secured Debt (Maturity - December 31, 2023) (8)	1 month LIBOR	6,530		6,506		6,530
		Member Units (2,896 units)	—	—		6,435		15,781			Member Units (2,896 units) (16)	—	—		6,435		22,721
						11,375		20,756							12,941		29,251
HMS-ORIX SLF LLC (9) (15)	Investment Partnership	Membership Interests (Fully diluted 60.00%) (16)	—	—		30,000		30,470
Harris Preston Fund Investments (9) (15)										Investment Partnership	LP Interests (2717 MH, LP) (Fully diluted 49.3%)	—	—		1,735		1,829
HMS-ORIX SLF, LLC (9) (15)										Investment Partnership	Membership Interests (Fully diluted 60.0%) (16)	—	—		186		186

Subtotal Control Investments (6) (5% of total investments at fair value)						$	45,493	$	55,571
Subtotal Control Investments (6) (3% of total investments at fair value)										Subtotal Control Investments (6) (3% of total investments at fair value)					$	15,734	$	32,138
Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)	Provider of Rent-to-Own Financing Solutions and Services	Member Units (46 units) (16)	—	$	—	$	300	$	985	Provider of Rent-to-Own Financing Solutions and Services	10.00% Secured Debt (Maturity - May 25, 2022) (14)	None	$	253	$	253	$	253
		Warrants (10 equivalent units, Expiration - November 7, 2024)	—	—		65		235			Member Units (46 units) (16)	—	—		300		1,138
						365		1,220							553		1,391
Brewer Crane Holdings, LLC (10) (13)	Provider of Crane Rental and Operating Services	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.10%, Secured Debt (Maturity - January 9, 2023) (8)	1 month LIBOR	2,417		2,376		2,376		Provider of Crane Rental and Operating Services	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.44%, Secured Debt (Maturity - January 9, 2023) (8)	1 month LIBOR	2,325		2,290		2,290
		Preferred Member Units (737 units)	—	—		1,070		1,070			Preferred Member Units (737 units) (16)	—	—		1,070		1,070
						3,446		3,446							3,360		3,360
Chamberlin HoldCo, LLC (10) (13)	Roofing and waterproofing specialty subcontractor	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.38%, Secured Debt (Maturity - February 23, 2023) (8)	1 month LIBOR	5,400		5,277		5,277
Centre Technologies Holdings, LLC (10) (13)										Provider of IT Hardware Services and Software Solutions	LIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.50%, Secured Debt (Maturity - January 4, 2024) (8)	1 month LIBOR	3,060		2,998		3,003
											Preferred Member Units (3,174 units)	—	—		1,460		1,460
															4,458		4,463
Chamberlin Holding, LLC (10) (13)										Roofing and Waterproofing Specialty Subcontractor	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.63%, Secured Debt (Maturity - February 23, 2023) (8)	1 month LIBOR	4,719		4,612		4,612
											Member Units (1,087 units) (16)	—	—		2,860		5,749
		Member Units (1,087 units)	—	—		2,860		4,448			Member Units (Chamberlin Langfield Real Estate, LLC) (1 unit) (16)	—	—		183		183
						8,137		9,725							7,655		10,544
Charlotte Russe, Inc.	Fast-Fashion Retailer to Young Women	8.50% Secured Debt (Maturity - February 2, 2023)	None	6,253		6,253		5,555		Fast-Fashion Retailer to Young Women	Common Stock (14,973 shares)	—	—		2,470		—
		Common Stock (14,973 shares)	—	—		2,470		2,470
						8,723		8,025
Charps, LLC (10) (13)	Pipeline Maintenance and Construction	12.00% Secured Debt (Maturity - January 31, 2022)	None	3,975		3,901		3,901		Pipeline Maintenance and Construction	15.00% Secured Debt (Maturity - June 5, 2022) (14)	None	500		500		500
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.10% Secured Debt (Maturity - February 3, 2022) (8)	1 month LIBOR	400		399		399
		Preferred Member Units (400 units)	—	—		100		263			Preferred Member Units (400 units) (16)	—	—		100		1,158
						4,400		4,563							600		1,658
Clad-Rex Steel, LLC (10) (13)	Specialty Manufacturer of Vinyl-Clad Metal	LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.60%, Secured Debt (Maturity - December 20, 2021) (8)	1 month LIBOR	3,120		3,075		3,120		Specialty Manufacturer of Vinyl-Clad Metal	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.44%, Secured Debt (Maturity - December 20, 2021) (8)	1 month LIBOR	2,920		2,886		2,920
		Member Units (179 units) (16)	—	—		1,820		2,595			Member Units (179 units) (16)	—	—		1,820		2,568
		10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)	None	292		289		289			10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)	None	288		285		285
		Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)	—	—		53		70			Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)	—	—		53		88
						5,237		6,074							5,044		5,861
Copper Trail Energy Fund I, LP (9) (15)										Investment Partnership	LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 12.4%) (16)	—	—		2,311		3,072
Digital Products Holdings LLC (10) (13)	Designer and Distributor of Consumer Electronics	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.13%, Secured Debt (Maturity - March 31, 2023) (8)	1 month LIBOR	6,517		6,396		6,396		Designer and Distributor of Consumer Electronics	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.50%, Secured Debt (Maturity - March 31, 2023) (8)	1 month LIBOR	6,269		6,167		6,219
		Preferred Member Units (863 units)	—	—		2,116		2,116			Preferred Member Units (863 units) (16)	—	—		2,116		1,992
						8,512		8,512							8,283		8,211
Direct Marketing Solutions, Inc. (10) (13)	Provider of Omni-Channel Direct Marketing Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.13%, Secured Debt (Maturity - February 13, 2023) (8)	1 month LIBOR	4,563		4,448		4,457		Provider of Omni-Channel Direct Marketing Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity - February 13, 2023) (8)	1 month LIBOR	$	4,387	$	4,290	$	4,297
		Preferred Stock (2,100 shares)	—	—		2,100		2,945			Preferred Stock (2,100 shares)	—	—		2,100		4,038
						6,548		7,402							6,390		8,335
Freeport Financial Funds (9) (15)	Investment Partnership	LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.0%) (16)	—	$	—	$	8,558	$	8,383	Investment Partnership	LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.0%) (16)	—	—		10,555		10,290
Gamber-Johnson Holdings, LLC (10) (13)	Manufacturer of Ruggedized Computer Mounting Systems	LIBOR Plus 8.00% (Floor 2.00%), Current Coupon 10.10%, Secured Debt (Maturity - June 24, 2021) (8)	1 month LIBOR	5,631		5,550		5,631		Manufacturer of Ruggedized Computer Mounting Systems	LIBOR Plus 7.00% (Floor 2.00%), Current Coupon 9.44%, Secured Debt (Maturity - June 24, 2021) (8)	1 month LIBOR	4,955		4,895		4,955
		Member Units (2,155 units) (16)	—	—		3,711		10,030			Member Units (2,155 units) (16)	—	—		3,711		11,367
						9,261		15,661							8,606		16,322
Guerdon Modular Holdings, Inc. (10) (13)	Multi-Family and Commercial Modular Construction Company	13.00% Secured Debt (Maturity - March 1, 2019)	None	3,147		3,118		2,996		Multi-Family and Commercial Modular Construction Company	16.00% Secured Debt (Maturity - October 1, 2019) (18)	None	3,147		3,135		2,621
		Common Stock (53,008 shares)	—	—		746		—			LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.09%, Secured Debt (Maturity - October 1, 2019) (8) (18)	3 month LIBOR	116		116		116
		Class B Preferred Stock (101,250 shares)	—	—		285		—			Common Stock (53,008 shares)	—	—		746		—
						4,149		2,996			Class B Preferred Stock (101,250 shares)	—	—		285		—
															4,282		2,737
Gulf Publishing Holdings, LLC (10) (13)	Energy Industry Focused Media and Publishing	12.50% Secured Debt (Maturity - April 29, 2021)	None	3,166		3,127		3,127		Energy Industry Focused Media and Publishing	12.50% Secured Debt (Maturity - April 29, 2021)	None	3,134		3,105		3,105
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.60%, Secured Debt (Maturity - September 30, 2020) (8)	1 month LIBOR	40		40		40			LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.94%, Secured Debt (Maturity - September 30, 2020) (8)	1 month LIBOR	80		80		80
		Member Units (781 units)	—	—		920		1,142			Member Units (920 units)	—	—		920		1,082
						4,087		4,309							4,105		4,267
Harris Preston Fund Investments (9) (15) (16)	Investment Partnership	LP Interests (HPEP 3, LP) (Fully diluted 8.2%)	—	—		1,733		1,733
		LP Interests (2717 MH, LP) (Fully diluted 49.3%)	—	—		1,040		1,133
						2,773		2,866
Harris Preston Fund Investments (9) (15)										Investment Partnership	LP Interests (HPEP 3, LP) (Fully diluted 8.2%)	—	—		2,233		2,233
Hawk Ridge Systems, LLC (9) (10) (13)	Value-Added Reseller of Engineering Design and Manufacturing Solutions	10.50% Secured Debt (Maturity - December 2, 2021)	None	3,575		3,523		3,575		Value-Added Reseller of Engineering Design and Manufacturing Solutions	10.00% Secured Debt (Maturity - December 2, 2021)	None	3,350		3,310		3,350
		Preferred Member Units (56 units) (16)	—	—		713		1,752			Preferred Member Units (56 units) (16)	—	—		713		1,815
		Preferred Member Units (HRS Services, ULC) (56 units) (16)	—	—		38		93			Preferred Member Units (HRS Services, ULC) (56 units) (16)	—	—		38		95
						4,274		5,420							4,061		5,260
HW Temps LLC (10) (13)	Temporary Staffing Solutions	LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 15.10%, Secured Debt (Maturity - July 2, 2020) (8)	1 month LIBOR	2,494		2,465		2,483
KMC Investor, LLC (10) (13)										Precision Metal Parts Manufacturing	11.50% Secured Debt (Maturity - October 31, 2023) (8)	None	6,799		6,611		6,617
											9.00% Secured Debt (Maturity October 31, 2048)	None	998		980		980
											Member Units (145 units)	—	—		248		248
		Preferred Member Units (800 units) (16)	—	—		986		986			Member Units (KMC RE Investor, LLC) (200 units) (16)	—	—		3,060		3,060
						3,451		3,469							10,899		10,905
Market Force Information, Inc. (10) (13)	Provider of Customer Experience Management Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.32%, Secured Debt (Maturity - July 28, 2022) (8)	1 month LIBOR	5,700		5,611		5,611		Provider of Customer Experience Management Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.52%, Secured Debt (Maturity - July 28, 2022) (8)	3 month LIBOR	5,700		5,628		5,628
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.32%, Secured Debt (Maturity - July 28, 2022) (8)	1 month LIBOR	100		100		100			LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.52%, Secured Debt (Maturity - July 28, 2022) (8)	3 month LIBOR	377		377		377
		Member Units (170,000 units)	—	—		3,675		3,563			Member Units (170,000 units)	—	—		3,675		2,756
						9,386		9,274							9,680		8,761
M.H. Corbin Holding LLC (10) (13)	Manufacturer and Distributor of Traffic Safety Products	10.00% Current / 3.00% PIK Secured Debt (Maturity - August 31, 2020)	None	3,019		2,981		2,982		Manufacturer and Distributor of Traffic Safety Products	5.00% Current / 5.00% PIK Secured Debt (Maturity - March 15, 2022)	None	2,158		2,132		2,158
		Preferred Member Units (1,000 units)	—	—		1,500		1,125			Preferred Member Units (16,500 units)	—	—		1,100		1,192
						4,481		4,107			Common Units (1,000 units)	—	—		1,500		5
															4,732		3,355

Mystic Logistics Holdings, LLC (10) (13)	Logistics and Distribution Services Provider for Large Volume Mailers	12.00% Secured Debt (Maturity - August 15, 2019)	None	1,884		1,868		1,875		Logistics and Distribution Services Provider for Large Volume Mailers	12.00% Secured Debt (Maturity - August 15, 2019)	None	$	1,770	$	1,766	$	1,766
		Common Stock (1,468 shares) (16)	—	—		680		178			Common Stock (1,468 shares)	—	—		680		522
						2,548		2,053							2,446		2,288
NexRev, LLC (10) (13)	Provider of Energy Efficiency Products & Services	10.00% Secured Debt (Maturity - February 28, 2023)	None	4,360		4,272		4,281		Provider of Energy Efficiency Products & Services	11.00% Secured Debt (Maturity - February 28, 2023)	None	4,305		4,231		4,238
		Preferred Member Units (21,600,000 units)	—	—		1,720		1,972
						5,992		6,253			Preferred Member Units (21,600,000 units) (16)	—	—		1,720		1,719
															5,951		5,957
NuStep, LLC (10) (13)	Designer, Manufacturer and Distributor of Fitness Equipment	12.00% Secured Debt (Maturity - January 31, 2022)	None	$	5,150	$	5,066	$	5,067	Designer, Manufacturer and Distributor of Fitness Equipment	12.00% Secured Debt (Maturity - January 31, 2022)	None	5,150		5,086		5,086
		Preferred Member Units (102 units)	—	—		2,550		2,550			Preferred Member Units (102 units)	—	—		2,550		2,550
						7,616		7,617							7,636		7,636
SI East, LLC (10) (13)	Rigid Industrial Packaging Manufacturing	10.25% Secured Debt (Maturity - August 31, 2023)	None	11,750		11,564		11,576		Rigid Industrial Packaging Manufacturing	10.25% Secured Debt (Maturity - August 31, 2023)	None	11,563		11,401		11,563
		Preferred Member Units (52 units)	—	—		2,000		2,000			Preferred Member Units (52 units) (16)	—	—		2,000		2,244
						13,564		13,576							13,401		13,807
Tedder Acquisition, LLC (10) (13)	Manufacturer of Firearm Holsters and Accessories	12.00% Secured Debt (Maturity - August 31, 2023)	None	4,100		3,978		3,978		Manufacturer of Firearm Holsters and Accessories	12.00% Secured Debt (Maturity - August 31, 2023)	None	4,100		3,992		3,992
		Preferred Member Units (110 units)	—	—		1,869		1,869			12.00% Secured Debt (Maturity - August 31, 2020)	None	200		198		198
						5,847		5,847			Preferred Member Units (110 units)	—	—		1,869		1,869
															6,059		6,059
Subtotal Affiliate Investments (4) (12% of total investments at fair value)						$	131,355	$	140,798
Trantech Radiator Topco, LLC (10) (13)										Transformer Cooling Products and Services	12.00% Secured Debt (Maturity - May 31, 2024)	None	2,600		2,511		2,523
											Common Stock (154 shares) (16)	—	—		1,164		1,164
															3,675		3,687

Subtotal Affiliate Investments (4) (14% of total investments at fair value)										Subtotal Affiliate Investments (4) (14% of total investments at fair value)					$	139,445	$	150,459

Non-Control/Non-Affiliate Investments (5)
AAC Holdings Inc. (8)	Substance Abuse Treatment Service Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.09%, Secured Debt (Maturity - June 30, 2023)	3 month LIBOR	$	14,594	$	14,325	$	14,813	Substance Abuse Treatment Service Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.33% / 4.00% PIK, Current Coupon Plus PIK 13.33%, Secured Debt (Maturity - June 30, 2023)	3 month LIBOR	$	14,396	$	14,025	$	12,957
											LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 13.49%, Secured Debt (Maturity - April 15, 2020)	3 month LIBOR	1,855		1,687		1,883
															15,712		14,840
Adams Publishing Group, LLC (8) (11)	Local Newspaper Operator	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - July 3, 2023)	3 month LIBOR	8,321		8,145		8,144		Local Newspaper Operator	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 10.08%, Secured Debt (Maturity - July 3, 2023)	3 month LIBOR	7,070		6,950		6,943
											LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 9.85%, Secured Debt (Maturity - July 3, 2023)	3 month LIBOR	223		208		219
		PRIME Plus 4.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - July 3, 2023)	PRIME	2,950		2,855		2,855			PRIME Plus 4.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - July 3, 2023)	PRIME	5,000		4,920		4,920
						11,000		10,999							12,078		12,082
ADS Tactical, Inc. (8) (11)	Value-Added Logistics and Supply Chain Solutions Provider to the Defense Industry	LIBOR Plus 6.25% (Floor 0.75%), Current Coupon 8.49%, Secured Debt (Maturity - July 26, 2023)	1 month LIBOR	16,458		16,308		16,308		Value-Added Logistics and Supply Chain Solutions Provider to the Defense Industry	LIBOR Plus 6.25% (Floor 0.75%), Current Coupon 8.65%, Secured Debt (Maturity - July 26, 2023)	1 month LIBOR	15,910		15,860		15,910
Aethon United BR, LP (8) (11)	Oil & Gas Exploration & Production	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.88%, Secured Debt (Maturity - September 8, 2023) (14)	1 month LIBOR	4,062		4,009		4,009		Oil & Gas Exploration & Production	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.16%, Secured Debt (Maturity - September 8, 2023) (14)	1 month LIBOR	4,063		4,016		4,063
Allen Media, LLC (8) (12)	Operator of Cable Television Networks	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.81%, Secured Debt (Maturity - August 30, 2023)	3 month LIBOR	17,143		16,647		16,693
Allflex Holdings III Inc. (8)	Manufacturer of Livestock Identification Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.35%, Secured Debt (Maturity - July 19, 2021) (14)	3 month LIBOR	13,232		13,321		13,311
Allen Media, LLC (8)										Operator of Cable Television Networks	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.90%, Secured Debt (Maturity - August 30, 2023)	3 month LIBOR	16,708		16,285		16,667
American Nuts, LLC (8) (11)	Roaster, Mixer and Packager of Bulk Nuts and Seeds	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.34%, Secured Debt (Maturity - April 10, 2023)	3 month LIBOR	11,221		11,011		11,012		Roaster, Mixer and Packager of Bulk Nuts and Seeds	LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 12.09%, Secured Debt (Maturity - April 10, 2023)	3 month LIBOR	12,298		12,074		11,916
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.34%, Secured Debt (Maturity - October 10, 2018)	3 month LIBOR	422		414		414
						11,425		11,426
American Scaffold Holdings, Inc. (8) (11)	Marine Scaffolding Service Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.89%, Secured Debt (Maturity - March 31, 2022)	3 month LIBOR	6,750		6,682		6,716		Marine Scaffolding Service Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.83%, Secured Debt (Maturity - March 31, 2022)	3 month LIBOR	$	5,970	$	5,923	$	5,941
American Teleconferencing Services, Ltd. (8)	Provider of Audio Conferencing and Video Collaboration Solutions	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.84%, Secured Debt (Maturity - December 8, 2021)	2 month LIBOR	14,798		14,064		14,327		Provider of Audio Conferencing and Video Collaboration Solutions	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.06%, Secured Debt (Maturity - December 8, 2021)	2 month LIBOR	14,163		13,619		8,321
Apex Linen Service, Inc. (10) (13)	Industrial Launderers	16.00% Secured Debt (Maturity - October 30, 2022)	None	3,604		3,558		3,558
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity - October 30, 2022) (8)	1 month LIBOR	600		600		600
						4,158		4,158
APTIM Corp	Engineering, Construction and Procurement	7.75% Secured Debt (Maturity - June 15, 2025)	None	6,952		6,141		5,979		Engineering, Construction and Procurement	7.75% Secured Debt (Maturity - June 15, 2025)	None	6,952		6,208		5,318
Arcus Hunting, LLC (8) (11)	Manufacturer of Bowhunting and Archery Products and Accessories	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.34%, Secured Debt (Maturity - November 13, 2019)	1 month LIBOR	8,559		8,512		8,556		Manufacturer of Bowhunting and Archery Products and Accessories	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.59%, Secured Debt (Maturity - November 13, 2020)	1 month LIBOR	7,832		7,819		7,832
Arise Holdings, Inc. (11)	Tech-enabled business process outsourcing	Preferred Stock (1,000,000 shares)	—	—		1,000		1,264		Tech-Enabled Business Process Outsourcing	Preferred Stock (1,000,000 shares)	—	—		1,000		1,896
ASC Ortho Management Company, LLC (11)	Provider of Orthopedic Services	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.81%, Secured Debt (Maturity - August 31, 2023) (8)	1 month LIBOR	$	4,660	$	4,553	$	4,568	Provider of Orthopedic Services	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.09%, Secured Debt (Maturity - August 31, 2023) (8)	3 month LIBOR	4,602		4,512		4,459
		13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)	None	1,553		1,514		1,514			13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)	None	1,678		1,639		1,641
						6,067		6,082							6,151		6,100
ATI Investment Sub, Inc. (8)	Manufacturer of Solar Tracking Systems	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.49%, Secured Debt (Maturity - June 22, 2021)	1 month LIBOR	5,624		5,524		5,556		Manufacturer of Solar Tracking Systems	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.66%, Secured Debt (Maturity - June 22, 2021)	1 month LIBOR	3,385		3,329		3,152
ATX Networks Corp. (8) (9)	Provider of Radio Frequency Management Equipment	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.39%, Current Coupon plus PIK 9.39%, Secured Debt (Maturity - June 11, 2021)	3 month LIBOR	14,133		13,961		13,426		Provider of Radio Frequency Management Equipment	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.35% / 1.00% PIK, Current Coupon Plus PIK 9.35%, Secured Debt (Maturity - June 11, 2021)	3 month LIBOR	13,830		13,671		13,104
BarFly Ventures, LLC (11)	Casual Restaurant Group	12.00% Secured Debt (Maturity - August 31, 2020)	None	3,272		3,237		3,270		Casual Restaurant Group	12.00% Secured Debt (Maturity - August 31, 2020)	None	3,395		3,369		3,293
		Warrants (.410 equivalent units, Expiration - August 31, 2025)	—	—		158		137			Warrants (.410 equivalent units, Expiration - August 31, 2025)	—	—		158		137
		Options (.731 equivalent units)	—	—		133		245			Options (.99 equivalent units)	—	—		202		313
						3,528		3,652							3,729		3,743
BBB Tank Services, LLC (10) (13)	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market	17.00% Secured Debt (Maturity - April 8, 2021)	None	1,000		991		974		Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.44%, Secured Debt (Maturity - April 8, 2021)	1 month LIBOR	1,160		1,155		1,129
		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.98%, Secured Debt (Maturity - April 9, 2018) (8)	1 month LIBOR	163		163		163			Preferred Stock (28,280 units)	—	—		28		31
		Member Units (200,000 units)	—	—		200		118			Member Units (200,000 units)	—	—		200		30
						1,354		1,255							1,383		1,190
Berry Aviation, Inc. (11)	Airline Charter Service Operator	10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)	None	4,463		4,398		4,398		Airline Charter Service Operator	10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)	None	4,514		4,455		4,514
		Preferred Member Units (Berry Acquisition, LLC) (1,548,387 units, 8.00% cumulative)	—	—		1,548		1,548			Preferred Member Units (Berry Acquisition, LLC) (1,548,387 units, 8.00% cumulative) (16)	—	—		1,548		1,661
						5,946		5,946							6,003		6,175
BigName Commerce, LLC (8) (11)	Provider of Envelopes and Complimentary Stationery Products	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.59%, Secured Debt (Maturity - May 11, 2022)	3 month LIBOR	2,493		2,470		2,470		Provider of Envelopes and Complimentary Stationery Products	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - May 11, 2022)	1 month LIBOR	2,412		2,394		2,377
Binswanger Enterprises, LLC (8) (11)	Glass Repair and Installation Service Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - March 9, 2022)	3 month LIBOR	14,368		14,155		14,368		Glass Repair and Installation Service Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - March 9, 2022)	3 month LIBOR	13,828		13,628		13,828
		Member Units (1,050,000 units)	—	—		1,050		1,330			Member Units (1,050,000 units)	—	—		1,050		1,230
						15,205		15,698							14,678		15,058
Bluestem Brands, Inc. (8)	Multi-Channel Retailer of General Merchandise	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.74%, Secured Debt (Maturity - November 6, 2020)	3 month LIBOR	12,398		12,274		8,277		Multi-Channel Retailer of General Merchandise	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - November 6, 2020)	3 month LIBOR	11,794		11,713		8,993
Boccella Precast Products, LLC (10) (13)	Manufacturer of Precast Hollow Core Concrete	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.34%, Secured Debt (Maturity - June 30, 2022) (8)	1 month LIBOR	4,071		3,992		4,063		Manufacturer of Precast Hollow Core Concrete	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 14.59%, Secured Debt (Maturity - June 30, 2022) (8)	3 month LIBOR	3,551		3,491		3,551
		Member Units (540,000 units)	—	—		540		1,240			Member Units (540,000 units) (16)	—	—		564		1,340
						4,532		5,303							4,055		4,891

Brightwood Capital Fund Investments (9) (15)	Investment Partnership	LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.60%) (16)	—	—		4,075		3,517		Investment Partnership	LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.60%) (16)	—	$	—	$	3,995	$	3,406
		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.80%) (16)	—	—		3,037		3,126			LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.80%) (16)	—	—		7,037		7,126
						7,112		6,643							11,032		10,532
Brundage-Bone Concrete Pumping, Inc.	Construction Services Provider	10.38% Secured Debt (Maturity - September 1, 2023) (14)	None	12,000		12,066		12,750
Buca C, LLC (10) (13)	Casual Restaurant Group	LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.36%, Secured Debt (Maturity - June 30, 2020) (8)	1 month LIBOR	12,936		12,832		12,832		Casual Restaurant Group	LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.68%, Secured Debt (Maturity - June 30, 2020) (8)	1 month LIBOR	12,670		12,609		12,517
		Preferred Member Units (4 units, 6.00% cumulative) (16)	—	—		2,866		2,909			Preferred Member Units (4 units, 6.00% cumulative) (16)	—	—		3,040		3,040
						15,698		15,741							15,649		15,557
BW NHHC Holdco, Inc. (8)	Full-Continuum Provider of Home Health Services	LIBOR Plus 5.00%, Current Coupon 7.16%, Secured Debt (Maturity - May 15, 2025)	1 month LIBOR	$	7,481	$	7,373	$	7,373
Cadence Aerospace, LLC (8) (11)	Aerospace Manufacturing	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.82%, Secured Debt (Maturity - November 14, 2023)	3 month LIBOR	19,517		19,343		19,480		Aerospace Manufacturing	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.83%, Secured Debt (Maturity - November 14, 2023)	3 month LIBOR	19,218		19,218		19,371
CAI Software, LLC (10) (13)	Provider of Specialized Enterprise Resource Planning Software	12.00% Secured Debt (Maturity - October 10, 2019)	None	821		814		821		Provider of Specialized Enterprise Resource Planning Software	12.00% Secured Debt (Maturity - December 7, 2023)	None	2,550		2,554		2,550
		Member Units (16,339 units) (16)	—	—		163		655			Member Units (16,742 units) (16)	—	—		188		1,235
						977		1,476							2,742		3,785
Cenveo Corporation	Provider of Commercial Printing, Envelopes, Labels, Printed Office Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.12%, Secured Debt (Maturity - June 7, 2023) (8)	1 month LIBOR	4,995		4,599		4,895		Provider of Digital Marketing Agency Services	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.42%, Secured Debt (Maturity - June 7, 2023) (8)	1 month LIBOR	4,449		4,146		4,260
		Common Stock (138,889 shares)	—	—		4,163		4,340			Common Stock (138,889 shares)	—	—		4,163		2,014
						8,762		9,235							8,309		6,274
Chisholm Energy Holdings, LLC (8) (11)										Oil & Gas Exploration & Production	LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 8.77%, Secured Debt (Maturity - May 15, 2026) (14)	3 month LIBOR	3,571		3,473		3,473
Clarius BIGS, LLC (11) (18)	Prints & Advertising Film Financing	15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	2,140		1,882		60		Prints & Advertising Film Financing	15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	2,128		1,870		28
		20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	773		680		22			20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	770		677		10
						2,562		82							2,547		38
Clickbooth.com, LLC (8) (11)	Provider of Digital Advertising Performance Marketing Solutions	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.84%, Secured Debt (Maturity - December 5, 2022)	3 month LIBOR	2,944		2,892		2,892		Provider of Digital Advertising Performance Marketing Solutions	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity - December 5, 2022)	3 month LIBOR	2,700		2,657		2,700
Construction Supply Investments, LLC (11)	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - June 30, 2023) (8)	1 month LIBOR	10,583		10,533		10,556		Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.41%, Secured Debt (Maturity - June 30, 2023) (8)	1 month LIBOR	16,455		16,347		16,413
		Member units (42,207 units)	—	—		4,221		4,290			Member units (42,207 units)	—	—		4,409		6,512
						14,754		14,846							20,756		22,925
CTVSH, PLLC (8) (11) (13)	Emergency Care and Specialty Service Animal Hospital	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - August 3, 2022)	1 month LIBOR	2,850		2,803		2,827		Emergency Care and Specialty Service Animal Hospital	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.52%, Secured Debt (Maturity - August 3, 2022)	1 month LIBOR	2,600		2,563		2,600
Datacom, LLC (10) (13) (18)	Technology and Telecommunications Provider	5.25% Current / 5.25% PIK, Current Coupon 10.50% Secured Debt (Maturity - May 30, 2019) (18)	None	1,384		1,377		1,168
Datacom, LLC (10) (13)										Technology and Telecommunications Provider	10.50% PIK Secured Debt (Maturity - May 30, 2019) (18) (19)	None	1,384		1,369		1,082
		8.00% Secured Debt (Maturity - May 30, 2018) (18)	None	200		200		188			8.00% Secured Debt (Maturity - May 30, 2019) (18) (19)	None	200		200		173
		Class A Preferred Member Units (1,530 units) (16)	—	—		144		—			Class A Preferred Member Units (1,530 units)	—	—		144		—
		Class B Preferred Member Units (717 units)	—	—		670		—			Class B Preferred Member Units (717 units)	—	—		670		—
						2,391		1,356							2,383		1,255
Digital River, Inc. (8)	Provider of Outsourced e-Commerce Solutions and Services	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.59%, Secured Debt (Maturity - February 12, 2021)	3 month LIBOR	9,779		9,701		9,779		Provider of Outsourced e-Commerce Solutions and Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.43%, Secured Debt (Maturity - February 12, 2021)	3 month LIBOR	9,759		9,707		9,808
DTE Enterprises, LLC (11)	Industrial Powertrain Repair and Services	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - April 13, 2023) (8)	1 month LIBOR	13,242		12,987		13,001		Industrial Powertrain Repair and Services	LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 10.11%, Secured Debt (Maturity - April 13, 2023) (8)	3 month LIBOR	11,742		11,548		11,742
		Class AA Preferred Member Units (non-voting)	—	—		724		724			Class AA Preferred Member Units (non-voting) (16)	—	—		797		797
		Class A Preferred Member Units (776,316 units)	—	—		776		776			Class A Preferred Member Units (776,316 units) (16)	—	—		776		1,490
						14,487		14,501							13,121		14,029
Dynamic Communities, LLC (8) (11)	Developer of Business Events and Online Community Groups	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.39%, Secured Debt (Maturity - July 17, 2023)	3 month LIBOR	5,600		5,490		5,492		Developer of Business Events and Online Community Groups	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity - July 17, 2023)	3 month LIBOR	5,495		5,400		5,347
Elite SEM, Inc. (8) (11)	Provider of Digital Marketing Agency Services	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.82%, Secured Debt (Maturity - February 1, 2022)	3 month LIBOR	6,875		6,740		6,740		Provider of Digital Marketing Agency Services	LIBOR Plus 8.44% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity - February 1, 2022)	3 month LIBOR	$	6,875	$	6,766	$	6,854
Epic Y-Grade Services, LP (8)	NGL Transportation & Storage	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.74%, Secured Debt (Maturity - June 13, 2024)	1 month LIBOR	17,500		17,161		17,084		NGL Transportation & Storage	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.90%, Secured Debt (Maturity - June 13, 2024)	1 month LIBOR	15,275		15,012		14,855
Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft) (8) (9)	Technology-Based Performance Support Solutions	LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 10.49%, Secured Debt (Maturity - April 28, 2022) (14)	1 month LIBOR	10,901		10,566		9,300		Technology-Based Performance Support Solutions	LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 10.65%, Secured Debt (Maturity - April 28, 2022) (14)	1 month LIBOR	10,901		10,626		4,297
Extreme Reach, Inc. (8)	Integrated TV and Video Advertising Platform	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - February 7, 2020)	1 month LIBOR	$	16,915	$	16,906	$	16,961
Felix Investments Holdings II, LLC (8) (11)	Oil and Gas Exploration and Production	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.84%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	3,333		3,276		3,276		Oil and Gas Exploration and Production	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.06%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	5,000		4,935		4,975
Flavors Holdings, Inc. (8)	Global Provider of Flavoring and Sweetening Products and Solutions	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.14%, Secured Debt (Maturity - April 3, 2020)	3 month LIBOR	11,714		11,355		10,952		Global Provider of Flavoring and Sweetening Products and Solutions	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.08%, Secured Debt (Maturity - April 3, 2020)	3 month LIBOR	10,719		10,552		10,049
GI KBS Merger Sub LLC (8)										Outsourced Janitorial Services to Retail/Grocery Customers	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.08%, Secured Debt (Maturity - April 29, 2022) (14)	3 month LIBOR	14,700		14,643		14,829
Good Source Solutions, Inc. (8) (11)										Specialized Food Distributor	LIBOR Plus 8.32% (Floor 1.00%), Current Coupon 10.65%, Secured Debt (Maturity - June 29, 2023)	3 month LIBOR	5,000		4,956		4,895
GoWireless Holdings, Inc. (8)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity - December 22, 2024)	3 month LIBOR	15,947		15,812		15,628		Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.90%, Secured Debt (Maturity - December 22, 2024)	3 month LIBOR	15,326		15,207		14,936
Hojeij Branded Foods, LLC (8) (11)	Multi-Airport, Multi-Concept Restaurant Operator	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.35%, Secured Debt (Maturity - July 20, 2022)	1 month LIBOR	12,352		12,253		12,352
HDC/HW Intermediate Holdings, LLC (8) (11)										Managed Services and Hosting Provider	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.83%, Secured Debt (Maturity - December 21, 2023)	3 month LIBOR	1,852		1,816		1,849
Hoover Group, Inc. (8) (9) (11)	Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.56%, Secured Debt (Maturity - January 28, 2021)	3 month LIBOR	14,735		14,062		14,586		Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.68%, Secured Debt (Maturity - January 28, 2021)	3 month LIBOR	14,621		14,147		14,255
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.31%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	5,388		4,818		5,289			LIBOR Plus 6.00% (Floor 0.00%), Current Coupon 9.18%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	6,950		6,702		6,559
						18,880		19,875							20,849		20,814
Hunter Defense Technologies, Inc. (8) (11)	Provider of Military and Commercial Shelters and Systems	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.39%, Secured Debt (Maturity - March 29, 2023)	3 month LIBOR	16,005		15,710		15,845		Provider of Military and Commercial Shelters and Systems	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.33%, Secured Debt (Maturity - March 29, 2023)	3 month LIBOR	8,696		8,577		8,696
HW Temps LLC (10) (13)										Temporary Staffing Solutions	8.00% Secured Debt (Maturity - March 29, 2023)	None	2,680		2,621		2,355
Hydrofarm Holdings, LLC (8) (11)	Wholesaler of Horticultural Products	LIBOR Plus 10.00%, Current Coupon 3.62% / 8.45 PIK, Current Coupon Plus PIK 12.07%, Secured Debt (Maturity - May 12, 2022)	1 month LIBOR	6,623		6,522		5,926		Wholesaler of Horticultural Products	LIBOR Plus 10.00%, Current Coupon 3.72% / 8.68% PIK, Current Coupon Plus PIK 12.40%, Secured Debt (Maturity - May 12, 2022)	1 month LIBOR	7,309		7,217		5,840
iEnergizer Limited (8) (9) (12)	Provider of Business Outsourcing Solutions	LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity - May 1, 2019)	1 month LIBOR	12,927		12,845		12,943
iEnergizer Limited (8) (9) (11)										Provider of Business Outsourcing Solutions	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity - April 17, 2024)	1 month LIBOR	14,488		14,347		14,346
Implus Footcare, LLC (8) (11)	Provider of Footwear and Related Accessories	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.14%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	17,198		17,032		17,127		Provider of Footwear and Related Accessories	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.58%, Secured Debt (Maturity - April 30, 2024)	3 month LIBOR	17,063		16,682		17,063
Independent Pet Partners Intermediate Holdings, LLC (8) (11)										Omnichannel Retailer of Specialty Pet Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.66%, Secured Debt (Maturity - November 19, 2023) (14)	3 month LIBOR	13,237		12,986		13,197
											Member Units (1,191,667 units)	—	—		1,192		1,192
															14,178		14,389
Industrial Services Acquisitions, LLC (11)	Industrial Cleaning Services	6.00% Current / 7.00% PIK, Current Coupon 13.00%, Unsecured Debt (Maturity - December 17, 2022) (17)	None	11,001		10,844		10,512		Industrial Cleaning Services	6.00% Current / 7.00% PIK, Current Coupon 13.00%, Unsecured Debt (Maturity - December 17, 2022) (17)	None	11,598		11,574		11,598
		Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)	—	—		202		202			Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)	—	—		202		202
		Member Units (Industrial Services Investments, LLC) (2,100,000 units)	—	—		2,100		490			Preferred Member Units (Industrial Services Investments, LLC) (187 units, 20.00% cumulative)	—	—		124		124
						13,146		11,204			Member Units (Industrial Services Investments, LLC) (2,100 units)	—	—		2,100		1,214
Inn of the Mountain Gods Resort and Casino	Hotel & Casino Owner & Operator	9.25% Secured Debt (Maturity - November 30, 2020) (14)	None	8,254		8,254		7,944
															14,000		13,138
Intermedia Holdings, Inc. (8)	Unified Communications as a Service	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.36%, Secured Debt (Maturity July 19, 2025)	3 month LIBOR	11,571		11,457		11,626		Unified Communications as a Service	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity - July 19, 2025)	1 month LIBOR	3,534		3,502		3,542
IronGate Energy Services, LLC (18)	Oil and Gas Services	11.00% Secured Debt (Maturity - July 1, 2018) (18)	None	5,825		5,827		2,097
Isagenix International, LLC (8)	Direct Marketer of Health and Wellness Products	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.14%, Secured Debt (Maturity - June 14, 2025)	3 month LIBOR	6,348		6,286		6,364		Direct Marketer of Health and Wellness Products	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.08%, Secured Debt (Maturity - June 14, 2025)	3 month LIBOR	$	6,107	$	6,052	$	4,855
Jackmont Hospitality, Inc. (8) (11)	Franchisee of Casual Dining Restaurants	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.99%, Secured Debt (Maturity - May 26, 2021)	1 month LIBOR	8,382		8,365		8,382		Franchisee of Casual Dining Restaurants	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.15%, Secured Debt (Maturity - May 26, 2021)	1 month LIBOR	8,224		8,212		8,224
Jacuzzi Brands LLC (8)	Manufacturer of Bath and Spa Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.24%, Secured Debt (Maturity - June 28, 2023)	1 month LIBOR	5,813		5,714		5,871
Joerns Healthcare, LLC (8)	Manufacturer and Distributor of Health Care Equipment & Supplies	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.31%, Secured Debt (Maturity - May 9, 2020)	3 month LIBOR	11,119		10,998		10,341		Manufacturer and Distributor of Health Care Equipment & Supplies	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity - May 9, 2020) (18)	3 month LIBOR	11,119		11,034		5,315
Kellermeyer Bergensons Services, LLC (8)	Outsourced Janitorial Services to Retail/Grocery Customers	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.84%, Secured Debt (Maturity - April 29, 2022) (14)	3 month LIBOR	14,700		14,630		14,902
LaMi Products, LLC (8) (11)	General Merchandise Distribution	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.83%, Secured Debt (Maturity -September 16, 2020)	3 month LIBOR	10,779		10,667		10,727
											LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity - October 24, 2019)	1 month LIBOR	944		944		944
															11,978		6,259
Kemp Technologies Inc. (8) (11)										Provider of Application Delivery Controllers	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.58%, Secured Debt (Maturity - March 29, 2024)	3 month LIBOR	7,500		7,350		7,350
Knight Energy Services LLC (11)										Oil and Gas Equipment and Services	8.50% Secured Debt (Maturity - February 9, 2024)	None	792		792		792
											Class A-2 Shares (25,692 units)	—	—		1,843		1,843
															2,635		2,635
Kore Wireless Group, Inc. (12)										Mission Critical Software Platform	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.83%, Secured Debt (Maturity - December 20, 2024) (8)	3 month LIBOR	5,486		5,466		5,452
Larchmont Resources, LLC	Oil & Gas Exploration & Production	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.33%, Secured Debt (Maturity - August 7, 2020) (8)	3 month LIBOR	$	4,362	$	4,362	$	4,318	Oil & Gas Exploration & Production	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.46%, Secured Debt (Maturity - August 7, 2020) (8)	3 month LIBOR	3,614		3,614		3,407
		Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)	—	—		601		1,322			Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)	—	—		601		1,201
						4,963		5,640							4,215		4,608
LJ Host Merger Sub, Inc. (8)	Managed Services and Hosting Provider	LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 7.29% / 0.50% PIK, Current Coupon Plus PIK 7.59%, Secured Debt (Maturity - December 13, 2019)	3 month LIBOR	17,231		16,993		16,843
Laredo Energy VI, LP (8) (11)										Oil and Gas Exploration and Production	LIBOR Plus 10.50% (Floor 2.00%) PIK, Current Coupon 13.05%, Secured Debt (Maturity - November 19, 2021)	6 month LIBOR	9,317		9,112		9,112
Lightbox Holdings, L.P. (8)										Provider of Commercial Real Estate Software	LIBOR Plus 5.00% (Floor 0.00%), Current Coupon 7.45%, Secured Debt (Maturity - May 9, 2026)	3 month LIBOR	5,000		4,926		4,950
LL Management, Inc. (8) (11)										Medical Transportation Service Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.23%, Secured Debt (Maturity - September 25, 2023)	3 month LIBOR	13,783		13,639		13,639
Logix Acquisition Company, LLC (8) (11)	Competitive Local Exchange Carrier	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.99%, Secured Debt (Maturity - December 22, 2024) (23)	1 month LIBOR	9,654		9,565		9,726		Competitive Local Exchange Carrier	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.15%, Secured Debt (Maturity - December 22, 2024) (23)	1 month LIBOR	12,824		12,744		12,824
LSF9 Atlantis Holdings, LLC (8)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.12%, Secured Debt (Maturity - May 1, 2023)	1 month LIBOR	13,563		13,473		13,139		Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.42%, Secured Debt (Maturity - May 1, 2023)	1 month LIBOR	13,300		13,224		12,505
Lulu’s Fashion Lounge, LLC (8)(11)	Fast Fashion E-Commerce Retailer	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.24%, Secured Debt (Maturity - August 28, 2022)	1 month LIBOR	6,307		6,146		6,433
Lulu’s Fashion Lounge, LLC (8) (11)										Fast Fashion E-Commerce Retailer	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.40%, Secured Debt (Maturity - August 28, 2022)	1 month LIBOR	5,923		5,763		5,805
Mac Lean-Fogg Company (11)										Manufacturer and Supplier for Auto and Power Markets	LIBOR Plus 4.75%, Current Coupon 7.08%, Secured Debt (Maturity - December 22, 2025) (8)	3 month LIBOR	7,171		7,116		7,116
											Preferred Stock (650 shares, 4.50% cash / 9.25% PIK, cumulative) (16)	—	—		757		757
															7,873		7,873
Mariner CLO 7, Ltd. (9) (15)										Structured Finance	Subordinated Structured Notes (estimated yield of 12.0% due April 30, 2032)	—	25,935		23,277		23,277
Meisler Operating, LLC (10) (13)	Provider of Short Term Trailer and Container Rental	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.84%, Secured Debt (Maturity - June 7, 2022) (8)	1 month LIBOR	5,120		5,010		5,017		Provider of Short Term Trailer and Container Rental	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity - June 7, 2022) (8)	3 month LIBOR	6,300		6,187		6,294
		Member Units (Milton Meisler Holdings, LLC) (12,139 units)	—	—		1,214		1,393			Member Units (Milton Meisler Holdings, LLC) (12,139 units)	—	—		1,214		1,758
						6,224		6,410							7,401		8,052
MHVC Acquisition Corp. (8)	Provider of Differentiated Information Solutions, Systems Engineering and Analytics	LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 7.64%, Secured Debt (Maturity - April 29, 2024)	3 month LIBOR	7,880		7,835		7,851		Provider of Differentiated Information Solutions, Systems Engineering and Analytics	LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 7.66%, Secured Debt (Maturity - April 29, 2024)	1 month LIBOR	7,820		7,780		7,771
Mills Fleet Farm Group, LLC (8) (11)										Omnichannel Retailer of Work, Farm and Lifestyle Merchandise	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.65%, Secured Debt (Maturity - October 24, 2024)	1 month LIBOR	14,925		14,652		14,652
Mobileum, Inc. (8) (11)										Provider of Big Data Analytics to Telecom Service Providers	LIBOR Plus 10.25% (Floor 0.75%), Current Coupon 12.58%, Secured Debt (Maturity - May 1, 2022) (14)	3 month LIBOR	$	7,500	$	7,439	$	7,440
New Era Technology, Inc. (8) (11)	Managed Services and Hosting Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity - June 22, 2023)	1 month LIBOR	6,153		6,035		6,092		Managed Services and Hosting Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.94%, Secured Debt (Maturity - June 22, 2023)	1 month LIBOR	9,039		8,907		8,966
New Media Holdings II LLC (8) (9)	Local Newspaper Operator	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.49%, Secured Debt (Maturity - July 14, 2022)	1 month LIBOR	9,138		9,034		9,221		Local Newspaper Operator	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.58%, Secured Debt (Maturity - July 14, 2022)	3 month LIBOR	9,669		9,590		9,641
NNE Partners, LLC (8) (11)	Oil & Gas Exploration & Production	LIBOR Plus 8.00%, Current Coupon 10.32%, Secured Debt (Maturity - March 2, 2022)	3 month LIBOR	18,375		18,238		18,229		Oil & Gas Exploration & Production	LIBOR Plus 8.00%, (Floor 0.00%) Current Coupon 10.52%, Secured Debt (Maturity - March 2, 2022)	3 month LIBOR	20,417		20,295		20,417
North American Lifting Holdings, Inc. (8)	Crane Service Provider	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.89%, Secured Debt (Maturity - November 27, 2020)	3 month LIBOR	6,261		5,767		6,112		Crane Service Provider	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.83%, Secured Debt (Maturity - November 27, 2020)	3 month LIBOR	6,211		5,878		5,899
Novetta Solutions, LLC (8)	Provider of Advanced Analytics Solutions for Defense Agencies	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - October 17, 2022)	1 month LIBOR	15,016		14,668		14,584		Provider of Advanced Analytics Solutions for Defense Agencies	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.41%, Secured Debt (Maturity - October 17, 2022)	1 month LIBOR	14,900		14,610		14,683
NTM Acquisition Corp. (8)	Provider of B2B Travel Information Content	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.49%, Secured Debt (Maturity - June 7, 2022)	1 month LIBOR	4,149		4,114		4,154		Provider of B2B Travel Information Content	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.65%, Secured Debt (Maturity - June 7, 2022)	1 month LIBOR	3,979		3,954		3,919
Pasha Group (8)	Diversified Logistics and Transportation Provided	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.70%, Secured Debt (Maturity - January 26, 2023)	2 month LIBOR	11,328		11,007		11,491		Diversified Logistics and Transportation Provided	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.94%, Secured Debt (Maturity - January 26, 2023)	2 month LIBOR	9,961		9,713		10,067
Permian Holdco 2, Inc.	Storage Tank Manufacturer	14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)	None	955		955		955		Storage Tank Manufacturer	14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)	None	1,061		1,061		775
		Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 shares) (16)	—	—		1,997		2,299			18.00% PIK Unsecured Debt (Maturity - June 30, 2022) (17)	None	725		725		725
		Common Shares (Permian Holdco 1, Inc.) (386,255 shares)	—	—		—		—			Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 shares) (16)	—	—		1,997		825
						2,952		3,254			Common Shares (Permian Holdco 1, Inc.) (386,255 shares)	—	—		—		—
Pernix Therapeutics Holdings, Inc. (11)	Pharmaceutical Royalty	12.00% Secured Debt (Maturity - August 1, 2020)	None	2,652		2,637		1,782
															3,783		2,325
Pier 1 Imports, Inc. (8)	Decorative Home Furnishings Retailer	LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 5.89%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	7,494		7,154		6,129		Decorative Home Furnishings Retailer	LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 5.70%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	7,415		7,184		1,854
PricewaterhouseCoopers Public Sector LLP (8) (14)	Provider of Consulting Services to Governments	LIBOR Plus 7.50%, Current Coupon 9.74%, Secured Debt (Maturity - May 1, 2026)	1 month LIBOR	12,000		11,942		12,060
Prowler Acquisition Corporation (8)	Specialty Distributor to the Energy Sector	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.79%, Secured Debt (Maturity - January 28, 2020)	2 month LIBOR	12,313		11,510		12,251
Resolute Industrial, LLC (11)	HVAC Equipment Rental and Remanufacturing	Class A units (601 units)	—	—		750		920
RGL Reservoir Operations, Inc. (9)	Oil & Gas Equipment & Services	1.00% Current / 9.00% PIK Secured Debt (Maturity - December 21, 2024)	None	$	772	$	467	$	386
PricewaterhouseCoopers Public Sector LLP (8)										Provider of Consulting Services to Governments	LIBOR Plus 7.50%, Current Coupon 9.90%, Secured Debt (Maturity - May 1, 2026) (14)	1 month LIBOR	14,100		14,055		14,030
Rise Broadband (8) (11)	Fixed Wireless Broadband Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.12%, Secured Debt (Maturity - May 2, 2023)	1 month LIBOR	14,925		14,784		14,784		Fixed Wireless Broadband Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.41%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	14,813		14,691		14,813
RM Bidder, LLC (11)	Scripted and Unscripted TV and Digital Programming Provider	Common Stock (1,854 shares)	—	—		31		12		Scripted and Unscripted TV and Digital Programming Provider	Common Stock (1,854 shares)	—	—		31		8
		Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)	—	—		284		—			Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)	—	—		284		—
		Series B Warrants (93,686 equivalent units, Expiration - October 20, 2025)	—	—		—		—			Series B Warrants (93,686 equivalent units, Expiration - October 20, 2025)	—	—		—		—
						315		12							315		8
Salient Partners, LP (8) (11)	Provider of Asset Management Services	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.99%, Secured Debt (Maturity - June 9, 2021)	1 month LIBOR	7,500		7,468		7,468		Provider of Asset Management Services	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.18%, Secured Debt (Maturity - June 9, 2021)	1 month LIBOR	6,900		6,923		6,872
Slick Software Holdings LLC (10) (13)	Text Messaging Marketing Platform	14.00% Secured Debt (Maturity - September 13, 2023)	—	1,800		1,701		1,701		Text Messaging Marketing Platform	14.00% Secured Debt (Maturity - September 13, 2023)	—	1,600		1,510		1,510
		Member units (17,500 units)	—	—		175		175			Member units (17,500 units)	—	—		175		222
		Warrants (4,521 equivalent units, Expiration - September 13, 2028)	—	—		45		45			Warrants (4,521 equivalent units, Expiration - September 13, 2028)	—	—		45		60
						1,921		1,921							1,730		1,792
Smart Modular Technologies, Inc. (8) (9) (11) (12)	Provider of Specialty Memory Solutions	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.60%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	19,000		18,776		19,095
Sorenson Communications, Inc. (8)	Manufacturer of Communication Products for Hearing Impaired	LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.14%, Secured Debt (Maturity - April 30, 2020)	3 month LIBOR	2,924		2,914		2,939
Strike, LLC (8)	Pipeline Construction and Maintenance Services	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity - November 30, 2022)	3 month LIBOR	9,125		8,915		9,262
Synagro Infrastructure Company, Inc. (8)	Waste Management Services	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.74%, Secured Debt (Maturity - August 22, 2020)	1 month LIBOR	8,291		8,041		7,254
Smart Modular Technologies, Inc. (8) (9) (11)										Provider of Specialty Memory Solutions	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	19,000		18,823		19,190
STL Parent Corp (8)										Manufacturer and Servicer of Tank and Hopper Railcars	LIBOR Plus 7.00% (Floor 0.00%), Current Coupon 9.40%, Secured Debt (Maturity - December 5, 2022)	1 month LIBOR	11,850		11,481		11,969
TE Holdings, LLC	Oil & Gas Exploration & Production	Common Units (72,785 units)	—	—		728		76		Oil & Gas Exploration & Production	Common Units (72,785 units)	—	—		728		—
Teleguam Holdings, LLC (8)	Cable and Telecom Services Provider	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity - April 12, 2024) (14)	1 month LIBOR	7,750		7,615		7,808		Cable and Telecom Services Provider	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.90%, Secured Debt (Maturity - April 12, 2024) (14)	1 month LIBOR	$	7,750	$	7,629	$	7,798
TGP Holdings III LLC (8) (12)	Outdoor Cooking & Accessories	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.89%, Secured Debt (Maturity - September 25, 2025) (14)	3 month LIBOR	5,000		5,000		4,969
TGP Holdings III LLC (8)										Outdoor Cooking & Accessories	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.83%, Secured Debt (Maturity - September 25, 2025) (14)	3 month LIBOR	5,000		5,000		4,700
TMC Merger Sub Corp (8)	Refractory & Maintenance Services Provider	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - October 31, 2022) (25)	1 month LIBOR	18,779		18,653		18,920		Refractory & Maintenance Services Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.19%, Secured Debt (Maturity - October 31, 2022) (25)	1 month LIBOR	17,300		17,127		17,128
TOMS Shoes, LLC (8)	Global Designer, Distributor, and Retailer of Casual Footwear	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.81%, Secured Debt (Maturity - October 30, 2020)	3 month LIBOR	4,825		4,631		3,846		Global Designer, Distributor, and Retailer of Casual Footwear	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.08%, Secured Debt (Maturity - October 30, 2020)	3 month LIBOR	4,788		4,662		3,686
Turning Point Brands, Inc. (8) (9) (11)	Marketer/Distributor of Tobacco Products	LIBOR Plus 7.00%, Current Coupon 9.15%, Secured Debt (Maturity - March 7, 2024) (14)	1 month LIBOR	8,500		8,421		8,670		Marketer/Distributor of Tobacco Products	LIBOR Plus 7.00% (Floor 0.00%), Current Coupon 9.40%, Secured Debt (Maturity - March 7, 2024) (14)	1 month LIBOR	6,592		6,530		6,658
TVG-I-E CMN Acquisition, LLC (8) (11)	Organic Lead Generation for Online Postsecondary Schools	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.49%, Secured Debt (Maturity - November 3, 2021)	1 month LIBOR	15,920		15,664		15,920
U.S. Telepacific Corp. (8)	Provider of Communications and Managed Services	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.39%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	16,453		16,093		16,227		Provider of Communications and Managed Services	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.33%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	16,453		16,145		15,716
VIP Cinema Holdings, Inc. (8)	Supplier of Luxury Seating to the Cinema Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - March 1, 2023)	1 month LIBOR	9,250		9,213		9,314		Supplier of Luxury Seating to the Cinema Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.41%, Secured Debt (Maturity - March 1, 2023)	1 month LIBOR	8,875		8,844		8,165
Vistar Media, Inc. (11)	Operator of Digital Out-of-Home Advertising Platform	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.39%, Secured Debt (Maturity - February 16, 2022) (8)	3 month LIBOR	3,263		3,032		3,088		Operator of Digital Out-of-Home Advertising Platform	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.33%, Secured Debt (Maturity - February 16, 2022) (8)	3 month LIBOR	5,764		5,534		5,713
		Warrants (70,207 equivalent units, Expiration - February 17, 2027)	—	—		331		790			Warrants (69,675 equivalent units, Expiration - April 3, 2029)	—	—		—		820
						3,363		3,878			Preferred Stock (70,207 shares)	—	—		767		830
															6,301		7,363
Volusion, LLC (10) (13)	Provider of Online Software-as-a-Service eCommerce Solutions	11.50% Secured Debt (Maturity - January 24, 2020)	None	$	7,172	$	6,674	$	6,740	Provider of Online Software-as-a-Service eCommerce Solutions	11.50% Secured Debt (Maturity - January 24, 2020)	None	8,672		8,423		8,464
		11.50% Secured Debt (Maturity - January 26, 2020)	None	1,088		1,088		1,022			8.00% Unsecured Convertible Debt (Maturity - November 16, 2023)	None	175		175		124
		8.00% Unsecured Convertible Debt (Maturity - November 16, 2023)	None	127		127		127			Preferred Member Units (2,090,001 units)	—	—		6,000		6,000
		Preferred Member Units (2,090,001 units)	—	—		6,000		6,000			Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)	—	—		1,104		244
		Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)	—	—		1,104		810							15,702		14,832
						14,993		14,699
Wireless Vision Holdings, LLC (8) (11)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.99%, Secured Debt (Maturity - September 29, 2022) (23)	1 month LIBOR	12,803		12,521		12,595		Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 12.49% / 1.00% PIK, Current Coupon Plus PIK 13.49%, Secured Debt (Maturity - September 29, 2022) (23)	1 month LIBOR	13,738		13,382		13,588
YS Garments (8)	Designer and Provider of Branded Activewear	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.17%, Secured Debt (Maturity - August 9, 2024)	1 month LIBOR	7,500		7,426		7,425		Designer and Provider of Branded Activewear	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.37%, Secured Debt (Maturity - August 9, 2024)	1 month LIBOR	7,359		7,294		7,304
Subtotal Non-Control/Non-Affiliate Investments (5) (83% of total portfolio investments at fair value)	Subtotal Non-Control/Non-Affiliate Investments (5) (83% of total portfolio investments at fair value)					$	944,195	$	933,953	Subtotal Non-Control/Non-Affiliate Investments (5) (83% of total portfolio investments at fair value)					$	918,757	$	885,651

Total Portfolio Investments						$	1,121,043	$	1,130,322						$	1,073,936	$	1,068,248

Short Term Investments (20)
Fidelity Institutional Money Market Funds (21)	—	Prime Money Market Portfolio, Class III Shares	—	—		$	4,450	$	4,450	—	Prime Money Market Portfolio, Class III Shares	—	—		$	8,619	$	8,619
US Bank Money Market Account (21)	—			—		15,574		15,574		—			—		6,361		6,361

Total Short Term Investments						$	20,024	$	20,024						$	14,980	$	14,980

(1) All investments are Middle Market (as defined in the notes to the financial statements) portfolio investments, unless otherwise noted. All of the assets of HMS Income Fund, Inc. (together with its consolidated subsidiaries, the “Company”) are encumbered as security for the Company’s credit agreements. See Note ~~5 -~~6 — Borrowings.

(2) Debt investments are income producing, unless otherwise noted. Equity investments and warrants are non-income producing, unless otherwise noted.

(3) See Note 3 -— Fair Value Hierarchy for Investments for summary geographic location of portfolio companies.

(4) Affiliate investments are generally defined by the Investment Company Act of 1940, as amended (the “1940 Act”), as investments in which between 5% and 25% of the voting securities are owned, or an investment in an investment company’s investment adviser, and the investments are not classified as Control investments. Fair value as of December 31, ~~2017~~2018 and ~~September~~June 30, ~~2018~~2019 along with transactions during the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 in these affiliated investments were as follows (in thousands):


			Nine Months Ended September 30, 2018										Nine Months Ended September 30, 2018										Six Months Ended June 30, 2019										Six Months Ended June 30, 2019
Portfolio Company	Fair Value at December 31, 2017		Gross Additions (Cost)^*		Gross Reductions (Cost)^**			Net Unrealized Gain (Loss)			Fair Value at September 30, 2018		Net Realized Gain (Loss)		Interest Income		Fee Income		Dividend Income		Fair Value at December 31, 2018		Gross Additions (Cost)^*		Gross Reductions (Cost)^**			Net Unrealized Gain (Loss) ^***			Fair Value at June 30, 2019		Net Realized Gain (Loss)			Interest Income			Fee Income		Dividend Income

Affiliate Investments
AFG Capital Group, LLC
Term loan																					$	—	$	260	$	(7	)	$	—		$	253	$	—		$	5		$	—	$	—
Member units	$	897	$	1	$	—		$	87		$	985	$	—	$	—	$	—	$	8	995		1		—			142			1,138		—			—			—		(10		)
Warrants	215		—		—			20			235		—		—		—		—		237		195		(260		)	(172		)	—		195			—			—		—
Brewer Crane Holdings, LLC
Term loan	—		2,487		(111		)	—			2,376		—		220		—		—		2,347		5		(62		)	—			2,290		—			152			—		—
Preferred member units	—		1,070		—			—			1,070		—		—		—		22		1,070		—		—			—			1,070		—			—			—		15
Centre Technologies Holdings, LLC
Term loan																					—		3,064		(67		)	6			3,003		—			182			15		—
Preferred member units																					—		1,460		—			—			1,460		—			—			—		—
Chamberlin HoldCo, LLC
Term loan	—		5,412		(135		)	—			5,277		—		414		2		—		4,933		11		(332		)	—			4,612		—			328			30		—
Member units																					4,735		—		—			1,014			5,749		—			—			—		117
Member units	—		2,861		—			1,587			4,448		—		—		21		306		183		—		—			—			183		—			—			—		3
Charlotte Russe, Inc.
Term loan	—		6,285		(32		)	(698		)	5,555		—		357		—		—		3,090		—		(6,236		)	3,146			—		(5,430		)	(84		)	—		—
Common stock	—		2,470		—			—			2,470		—		—		—		—		—		—		—			—			—		—			—			—		—

Charps, LLC
Term loan	4,500		28		(627		)	—			3,901		—		403		—		—		2,975		452		(3,374		)	(53		)	—		—			192			—		—
Term loan	—		401		(2		)	—			399		—		9		1		—		—		500		—			—			500		—			9			2		—
Preferred member units	163		1		—			99			263		—		—		—		—		568		—		—			590			1,158		—			—			—		54

Clad-Rex Steel, LLC
Term loan	$	3,320	$	12	$	(200	)	$	(12	)	$	3,120	$	—	$	292	$	—	$	—	3,020		7		(100		)	(7		)	2,920		—			181			—		—
Member units	2,375		1		(1		)	220			2,595		—		—		—		—		2,653		—		—			(85		)	2,568		—			—			—		31
Term loan (Clad-Rex Steel RE Investor, LLC)	293		—		(4		)	—			289		—		22		—		—		288		—		(2		)	(1		)	285		—			14			—		—
Member units (Clad-Rex Steel RE Investor, LLC)	70		—		—			—			70		—		—		—		128		88		—		—			—			88		—			—			—		—
Copper Trail Energy Fund I, LP
LP interests																					—		4,029		(993		)	36			3,072		—			—			11		(250		)
Digital Products Holdings LLC
Term loan	—		6,611		(215		)	—			6,396		—		411		—		13		6,320		12		(166		)	53			6,219		—			411			—		—
Preferred member units	—		2,200		(84		)	—			2,116		—		—		13		—		2,116		—		—			(124		)	1,992		—			—			—		25
Direct Marketing Solutions, Inc.
Term loan	—		4,722		(264		)	(1		)	4,457		—		407		3		—		4,404		11		(118		)	—			4,297		—			311			—		—
Preferred stock	—		2,100		—			845			2,945		—		—		—		—		3,725		—		—			313			4,038		—			—			—		—
Freeport Financial Funds
LP interests	8,506		—		—			(123		)	8,383		—		—		—		805		10,980		798		(1,399		)	(89		)	10,290		—			—			—		510
Gamber-Johnson Holdings, LLC
Term loan	5,850		19		(220		)	(18		)	5,631		—		508		—		104		5,371		12		(416		)	(12		)	4,955		—			272			—		—
Common stock	5,843		—		—			4,187			10,030		—		—		12		231		11,365		—		—			2			11,367		—			—			—		379
Guerdon Modular Holdings, Inc.
Term loan	2,660		511		(37		)	(138		)	2,996		—		302		—		—		3,001		9		—			(389		)	2,621		—			(231		)	—		—
Term loan	—		70		(70		)	—			—		—		2		—		—		—		116		—			—			116		—			—			2		—
Common stock	—		—		—			—			—		—		—		—		—		—		—		—			—			—		—			—			—		—
Class B preferred units	—		—		—			—			—		—		—		—		—
Gulf Publishing Holdings, LLC
Term loan	3,151		9		(33		)	—			3,127		—		311		—		—		3,131		7		(33		)	—			3,105		—			205			—		—
Term loan	20		40		(20		)	—			40		—		2		—		—		—		80		—			—			80		—			1			—		—
Member units	1,210		—		(1		)	(67		)	1,142		—		—		—		—		1,030		—		—			52			1,082		—			—			—		—
Harris Preston Fund Investments
LP interests (HPEP 3, LP)	943		790		—			—			1,733		—		—		—		—		1,733		500		—			—			2,233		—			—			—		—
LP interests (2717 HM, LP)	536		504		—			93			1,133		—		—		—		—		1,133		1,195		(2,328		)	—			—		—			—			—		—
Hawk Ridge Systems, LLC
Term loan	3,574		11		—			(10		)	3,575		—		296		—		—		3,575		9		(224		)	(10		)	3,350		—			187			—		—
Preferred member units	950		—		—			802			1,752		—		—		—		109		1,815		—		—			—			1,815		—			—			—		62
Preferred member units (HRS Services, ULC)	50		1		—			42			93		—		—		—		—		95		—		—			—			95		—			—			—		—
HWT, LLC
Term Loan																					2,484		391		(2,875		)	—			—		—			—			—		—
Member units																					986		—		(986		)	—			—		—			—			—		—

KMC Investor, LLC
Term loan																					$	6,795	$	22	$	(200	)	$	—		$	6,617	$	—		$	424		$	—	$	—
Term loan																					259		1		(266		)	6			—		—			3			—		—
Term loan	2,454		10		—			19			2,483		—		265		—		—		991		—		(11		)	—			980		—			37			—		—
Member units	985		1		—			—			986		—		—		26		—		248		—		—			—			248		—			—			—		—
Member units (KMC RE Investor, LLC)																					3,060		—		—			—			3,060		—			—			—		18
Market Force Information, Inc.
Term loan	5,732		19		(140		)	—			5,611		—		592		—		—		5,617		11		—			—			5,628		—			402			—		—
Term loan	—		170		(70		)	—			100		—		4		—		—		50		377		(50		)	—			377		—			6			—		—
Member units	3,675		—		—			(112		)	3,563		—		—		—		—		3,275		—		—			(519		)	2,756		—			—			—		—
M.H. Corbin Holding, LLC
Term loan	3,130		13		(162		)	1			2,982		—		348		—		—		2,934		213		(1,114		)	125			2,158		10			176			—		—
Member units																					—		1,100		—			92			1,192		—			—			—		—
Member units	1,500		—		—			(375		)	1,125		—		—		26		—		250		—		—			(245		)	5		—			—			—		—
Mystic Logistics Holdings, LLC
Term loan	1,916		10		(57		)	6			1,875		—		185		—		—		1,877		8		(113		)	(6		)	1,766		—			120			—		—
Common stock	1,705		1		—			(1,528		)	178		—		—		—		—		52		1		—			469			522		—			—			—		—
NexRev, LLC
Term loan	—		4,378		(98		)	1			4,281		—		288		—		—		4,322		8		(54		)	(38		)	4,238		—			256			—		—
Preferred member units	—		1,720		—			252			1,972		—		—		3		10		1,972		—		—			(253		)	1,719		—			—			—		39
NuStep, LLC
Term loan	5,048		19		—			—			5,067		—		489		—		—		5,073		13		—			—			5,086		—			324			—		—
Preferred member units	2,550		1		(1		)	—			2,550		—		—		—		—		2,550		—		—			—			2,550		—			—			—		—
SI East, LLC
Term loan	—		11,765		(189		)	—			11,576		—		107		—		—		11,582		18		(187		)	150			11,563		—			628			—		—
Preferred member units	—		2,000		—			—			2,000		—		—		—		—		2,000		—		—			244			2,244		—			—			—		39
SoftTouch Medical Holdings, LLC
Term loan	1,260		10		(1,260		)	(10		)	—		—		26		—		—
Soft Touch Medical Holdings, LLC
Member units	1,781		—		(870		)	(911		)	—		903		—		11		134		—		—		—			—			—		(41		)	—			—		—

Tedder Acquisition, LLC
Term loan	$	—	$	4,101	$	(123	)	$	—		$	3,978	$	—	$	52	$	—	$	—	3,983		9		—			—			3,992		—			257			—		—
Term loan																					118		80		—			—			198		—			9			2		—
Preferred member units	—		1,869		—			—			1,869		—		—		—		—		1,869		—		—			—			1,869		—			—			—		—
	$	76,862	$	64,704	$	(5,026	)	$	4,258		$	140,798	$	903	$	6,312	$	118	$	1,870
Trantech Radiator Topco, LLC
Term loan																					—		2,601		(78		)	—			2,523		—			27			—		—
Preferred member units																					—		1,164		—			—			1,164		—			—			—		2
Total Affiliate Investments																					$	149,323	$	18,750	$	(22,051	)	$	4,437		$	150,459	$	(5,266	)	$	4,804		$	62	$	1,034

* Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind (“PIK”) interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

** Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more new securities and the movement of an existing portfolio company out of this category into a different category.

*** Net unrealized gain (loss) does not include unrealized appreciation (depreciation) on unfunded commitments.

(5) Non-Control/Non-Affiliate investments are generally investments that are neither Control investments nor Affiliate investments.

(6) Control investments are generally defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained. Fair value as of December 31, ~~2017~~2018 and ~~September~~June 30, ~~2018~~2019 along with transactions during the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 in these Control investments were as follows (in thousands):


			Nine Months Ended September 30, 2018										Nine Months Ended September 30, 2018										Six Months Ended June 30, 2019										Six Months Ended June 30, 2019
Portfolio Company	Fair Value at December 31, 2017		Gross Additions (Cost)^**		Gross Reductions (Cost)^***			Net Unrealized Gain (Loss)			Fair Value at September 30, 2018		Net Realized Gain (Loss)		Interest Income		Fee Income		Dividend Income		Fair Value at December 31, 2018		Gross Additions (Cost)^**		Gross Reductions (Cost)^***			Net Unrealized Gain (Loss)			Fair Value at June 30, 2019		Net Realized Gain (Loss)			Interest Income		Fee Income		Dividend Income

Control Investments
Copper Trail Energy Fund I, LP
LP interests	$	2,500	$	746	$	—		$	227		$	3,473	$	—	$	—	$	—	$	34	$	4,468	$	23	$	(4,491	)	$	—		$	—	$	—		$	—	$	—	$	—
CTMH, LP
LP interests	—		872		—			—			872		—		—		—		—		872		—		—			—			872		—			—		—		—
GRT Rubber Technologies, LLC
Term loan	5,715		23		(739		)	(24		)	4,975		—		463		—		—		4,797		1,736		—			(3		)	6,530		—			267		—		—
Member units	10,821		—		—			4,960			15,781		—		—		52		432		19,239		—		—			3,482			22,721		—			—		35		2,653
Harris Preston Fund Investments
LP interests (2717 HM, LP)																					—		2,328		(499		)	—			1,829
HMS-ORIX SLF LLC^*
Membership interests	30,643		—		—			(173		)	30,470		—		—		—		1,591		26,351		—		(29,815		)	3,650			186		(598		)	—		—		546
	$	49,679	$	1,641	$	(739	)	$	4,990		$	55,571	$	—	$	463	$	52	$	2,057
Total Control Investments																					$	55,727	$	4,087	$	(34,805	)	$	7,129		$	32,138	$	(598	)	$	267	$	35	$	3,199

* Together with ORIX Funds Corp. (“Orix”), the Company ~~co-invests~~co-invested through HMS-ORIX SLF LLC (“HMS-ORIX”), which is organized as a Delaware limited liability company. Pursuant to the terms of the limited liability company agreement and through representation on the HMS-ORIX Board of Managers, the Company and Orix each have 50% voting control of HMS-ORIX and together will agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. Although the Company owns more than 25% of the voting securities of HMS-ORIX, the Company does not have sole control over significant actions of HMS-ORIX for purposes of the 1940 Act or otherwise.

** Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

*** Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more new securities and the movement of an existing portfolio company out of this category into a different category.

(7) Principal is net of repayments. Cost represents amortized cost which is net of repayments and adjusted for the amortization of premiums and/or accretion of discounts, as applicable.

(8) Index based floating interest rate is subject to contractual minimum interest rates, or floors.

(9) The investment is not a qualifying asset in an eligible portfolio company under Section 55(a) of the 1940 Act. A business development company (“BDC”) may not acquire any asset other than qualifying assets in eligible portfolio companies unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. As of ~~September~~June 30, ~~2018,~~2019, approximately ~~12.7%~~13.2% of the Company’s total assets were considered non-qualifying.

(10) Investment is classified as a LMM (as defined in the notes to the financial statements) portfolio investment.

(11) Investment is classified as a Private Loan (as defined in the notes to the financial statements) portfolio investment.

(12) Investment or portion of investment is under contract to purchase and met trade date accounting criteria as of ~~September~~June 30, ~~2018.~~2019. Settlement occurred or is scheduled to occur after ~~September~~June 30, ~~2018.~~2019.

(13) Investment serviced by Main Street Capital Corporation (“Main Street”) pursuant to servicing arrangements with the Company.

(14) Second lien secured debt investment.

(15) Investment is classified as an Other Portfolio (as defined in the notes to the financial statements) investment.

(16) Income producing through dividends or distributions.

(17) Unsecured debt investment.

(18) Investment is on non-accrual status as of ~~September~~June 30, ~~2018.~~2019.

(19) ~~[Reserved]~~Maturity date is under on-going renegotiations with the portfolio company and other lenders, if applicable.

(20) Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.

(21) Effective yield as of ~~September~~June 30, ~~2018~~2019 was approximately 0.30% at US Bank Money Market Account and ~~1.74%~~2.02% at Fidelity Institutional Money Market Funds.

(22) The 1, 2, 3, and 6-month London Interbank Offered Rate (“LIBOR”) ~~rates~~ were ~~2.26%~~2.40%, ~~2.31%~~2.33%, ~~2.40%~~2.32% and ~~2.60%~~2.20%, respectively, as of ~~September~~June 30, ~~2018.~~2019. The actual LIBOR ~~rate~~ for each loan listed may not be the applicable LIBOR ~~rate~~ as of ~~September~~June 30, ~~2018,~~2019, as the loan may have been priced or repriced based on a LIBOR ~~rate~~ prior to ~~September~~June 30, ~~2018.~~2019. The prime rate was ~~5.25%~~5.50% as of ~~September~~June 30, ~~2018.~~2019.

(23) The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of LIBOR plus 7.50% (Floor 1.00%) per the credit agreement and the Condensed Consolidated Schedule of Investments above reflects such higher rate.

(24) [Reserved]

(25) The Company has entered into an intercreditor agreement that entitles the Company to the "first out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder. Therefore, the Company receives a lower interest rate than the contractual stated interest rate of LIBOR plus 6.64% (Floor 1.00%) per the credit agreement and the Condensed Consolidated Schedule of Investments above reflects such lower rate.

(26) The fair value of the investment was determined using significant unobservable inputs. See Note 3 -— Fair Value Hierarchy for Investments.

See notes to the condensed consolidated financial statements.


HMS Income Fund, Inc. Consolidated Schedule of Investments	HMS Income Fund, Inc. Consolidated Schedule of Investments									HMS Income Fund, Inc. Consolidated Schedule of Investments
As of December 31, 2017
12/31/2018										12/31/2018
(dollars in thousands)
Portfolio Company (1) (3)	Business Description	Type of Investment (2) (3)	Index Rate (22)	Principal (7)		Cost (7)		Fair Value (26)		Business Description	Type of Investment (2) (3)	Index Rate (22)	Principal (7)		Cost (7)		Fair Value (26)

Control Investments (6)
Copper Trail Energy Fund I, LP (9)(15)(16)	Investment Partnership	LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.1%)	—	$	—	$	2,500	$	2,500
GRT Rubber Technologies, LLC (8) (10) (13)	Engineered Rubber Product Manufacturer	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity - December 19, 2019)	1 month LIBOR	5,715		5,657		5,715
Copper Trail Energy Fund I, LP (9) (15)										Investment Partnership	LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.10%) (16)	—	$	—	$	3,745	$	4,468
CTMH, LP (9) (15)										Investment Partnership	LP Interests (CTMH, LP) (Fully diluted 38.80%)	—	—		872		872
GRT Rubber Technologies, LLC (10) (13)										Manufacturer of Engineered Rubber Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.35%, Secured Debt (Maturity - December 31, 2023) (8)	1 month LIBOR	4,797		4,770		4,797
		Member Units (2,896 shares) (16)	—	—		6,435		10,821			Member Units (2,896 units) (16)	—	—		6,434		19,239
						12,092		16,536							11,204		24,036
HMS-ORIX SLF LLC (9) (15)	Investment Partnership	Membership Interests (Fully diluted 60.00%) (16)	—	—		30,000		30,643		Investment Partnership	Membership Interests (Fully diluted 60.00%) (16)	—	—		30,000		26,351

Subtotal Control Investments (6) (5% of total investments at fair value)	Subtotal Control Investments (6) (5% of total investments at fair value)					$	44,592	$	49,679	Subtotal Control Investments (6) (5% of total investments at fair value)					$	45,821	$	55,727
Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)	Provider of Rent-to-Own Financing Solutions and Services	Member Units (46 shares) (16)	—	$	—	$	300	$	897	Provider of Rent-to-Own Financing Solutions and Services	Member Units (46 units) (16)	—	$	—	$	300	$	995
											Warrants (10 equivalent units, Expiration - November 7, 2024)	—	—		65		237
															365		1,232
Brewer Crane Holdings, LLC (10) (13)										Provider of Crane Rental and Operating Services	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.35%, Secured Debt (Maturity - January 9, 2023) (8)	1 month LIBOR	2,387		2,347		2,347
											Preferred Member Units (737 units) (16)	—	—		1,070		1,070
															3,417		3,417
Chamberlin Holding, LLC (10) (13)										Roofing and Waterproofing Specialty Subcontractor	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.75%, Secured Debt (Maturity - February 23, 2023) (8)	1 month LIBOR	5,051		4,933		4,933
											Member Units (1,087 units) (16)	—	—		2,860		4,735
											Member Units (Langfield RE, LLC) (1 unit) (16)	—	—		183		183
															7,976		9,851
Charlotte Russe, Inc.										Fast-Fashion Retailer to Young Women	8.50% Secured Debt (Maturity - February 2, 2023)	None	6,237		6,237		3,090
		Warrants (10 equivalent shares, Expiration - November 7, 2024)	—	—		65		215			Common Stock (14,973 shares)	—	—		2,470		—
						365		1,112							8,707		3,090
Charps, LLC (10) (13)	Pipeline Maintenance and Construction	12.00% Secured Debt (Maturity - January 31, 2022)	None	4,600		4,497		4,500		Pipeline Maintenance and Construction	12.00% Secured Debt (Maturity - February 3, 2022)	None	2,975		2,922		2,975
		Preferred Member Units (400 units)	—	—		100		163			Preferred Member Units (400 units) (16)	—	—		100		568
						4,597		4,663							3,022		3,543
Clad-Rex Steel, LLC (10) (13)	Specialty Manufacturer of Vinyl-Clad Metal	LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity - December 20, 2021) (8)	1 month LIBOR	3,320		3,264		3,320		Specialty Manufacturer of Vinyl-Clad Metal	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.35%, Secured Debt (Maturity - December 20, 2021) (8)	1 month LIBOR	3,020		2,979		3,020
		Member Units (179 units) (16)	—	—		1,820		2,375			Member Units (179 units) (16)	—	—		1,820		2,653
		10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)	None	296		293		293			10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)	None	291		288		288
		Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)	—	—		53		70			Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)	—	—		53		88
						5,430		6,058							5,140		6,049
Freeport First Lien Loan Fund III, LP (9) (15)	Investment Partnership	LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 5.60%) (16)	—	—		8,558		8,506
Gamber-Johnson Holdings, LLC (8) (10) (13)	Manufacturer of Ruggedized Computer Mounting Systems	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.36%, Secured Debt (Maturity - June 24, 2021)	1 month LIBOR	5,850		5,750		5,850
Digital Products Holdings LLC (10) (13)										Designer and Distributor of Consumer Electronics	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.38%, Secured Debt (Maturity - March 31, 2023) (8)	1 month LIBOR	6,435		6,320		6,320
											Preferred Member Units (863 units) (16)	—	—		2,116		2,116
															8,436		8,436
Direct Marketing Solutions, Inc. (10) (13)										Provider of Omni-Channel Direct Marketing Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.38%, Secured Debt (Maturity - February 13, 2023) (8)	1 month LIBOR	4,503		4,396		4,404
											Preferred Stock (2,100 shares)	—	—		2,100		3,725
															6,496		8,129
Freeport Financial Funds (9) (15)										Investment Partnership	LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.00%) (16)	—	$	—	$	11,155	$	10,980
Gamber-Johnson Holdings, LLC (10) (13)										Manufacturer of Ruggedized Computer Mounting Systems	LIBOR Plus 7.50% (Floor 2.00%), Current Coupon 9.85%, Secured Debt (Maturity - June 24, 2021) (8)	1 month LIBOR	5,371		5,299		5,371
		Member Units (2,155 units) (16)	—	—		3,711		5,843			Member Units (2,155 units) (16)	—	—		3,711		11,365
						9,461		11,693							9,010		16,736
Guerdon Modular Holdings, Inc. (10) (13)	Multi-Family and Commercial Modular Construction Company	13.00% Secured Debt (Maturity - August 13, 2019)	None	2,677		2,644		2,660		Multi-Family and Commercial Modular Construction Company	13.00% Secured Debt (Maturity - March 1, 2019)	None	3,147		3,124		3,001
		Common Stock (53,008 shares)	—	—		746		—			Common Stock (53,008 shares)	—	—		746		—
		Class B Preferred Stock (101,250 shares)	—	—		285		—			Class B Preferred Stock (101,250 shares)	—	—		285		—
						3,675		2,660							4,155		3,001
Gulf Publishing Investor, LLC (10) (13)	Energy Focused Media and Publishing	12.50% Secured Debt (Maturity - April 29, 2021)	None	3,200		3,151		3,151
Gulf Publishing Holdings, LLC (10) (13)										Energy Industry Focused Media and Publishing	12.50% Secured Debt (Maturity - April 29, 2021)	None	3,166		3,131		3,131
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity - September 30, 2020) (8)	1 month LIBOR	20		20		20			Member Units (920 units)	—	—		920		1,030
		Member Units (781 units)	—	—		920		1,210							4,051		4,161
						4,091		4,381
Harris Preston Fund Investments (15) (16)	Investment Partnership	LP Interests (HPEP 3, LP) (Fully diluted 9.60%) (9)	—	—		943		943
		LP Interests (2717 MH, LP) (Fully diluted 7.00%)	—	—		536		536
						1,479		1,479
Harris Preston Fund Investments (9) (15)										Investment Partnership	LP Interests (HPEP 3, LP) (Fully diluted 8.20%) (16)	—	—		1,733		1,733
											LP Interests (2717 MH, LP) (Fully diluted 49.30%) (16)	—	—		1,040		1,133
															2,773		2,866
Hawk Ridge Systems, LLC (9) (10) (13)	Value-Added Reseller of Engineering Design and Manufacturing Solutions	11.00% Secured Debt (Maturity - December 2, 2021)	None	$	3,575	$	3,513	$	3,574	Value-Added Reseller of Engineering Design and Manufacturing Solutions	10.50% Secured Debt (Maturity - December 2, 2021)	None	3,575		3,526		3,575
		Preferred Member Units (56 units) (16)	—	—		713		950			Preferred Member Units (56 units) (16)	—	—		713		1,815
		Preferred Member Units (HRS Services, ULC) (56 units) (16)	—	—		38		50			Preferred Member Units (HRS Services, ULC) (56 units) (16)	—	—		38		95
						4,264		4,574							4,277		5,485
HW Temps LLC (8) (10) (13)	Temporary Staffing Solutions	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.36%, Secured Debt (Maturity - July 2, 2020)	1 month LIBOR	2,494		2,454		2,454
HW Temps LLC (10) (13)										Temporary Staffing Solutions	LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 15.35%, Secured Debt (Maturity - July 2, 2020) (8)	1 month LIBOR	2,494		2,469		2,484
		Preferred Member Units (800 units) (16)	—	—		986		985			Preferred Member Units (800 units) (16)	—	—		986		986
						3,440		3,439							3,455		3,470
Market Force Information, Inc. (8)(10)(13)	Provider of Customer Experience Management Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.48%, Secured Debt (Maturity - July 28, 2022)	3 month LIBOR	5,840		5,732		5,732
KMC Investor, LLC (10) (13)										Precision Metal Parts Manufacturing	11.50% Secured Debt (Maturity - October 31, 2023)	None	7,000		6,795		6,795
		Member Units (170,000 units)	—	—		3,675		3,675			11.50% Secured Debt (Maturity - October 31, 2020)	None	266		259		259
						9,407		9,407			9.00% Secured Debt (Maturity - October 31, 2048)	None	1,001		991		991
M.H. Corbin, Inc. (10) (13)	Manufacturer and Distributor of Traffic Safety Products	13.00% Secured Debt (Maturity - August 31, 2020)	None	3,150		3,130		3,130
		Preferred Member Units (1,000 units)	—	—		1,500		1,500			Member Units (145 units)	—	—		248		248
						4,630		4,630			Member Units (KMC RE Investor, LLC) (200 units)	—	—		3,060		3,060
Mystic Logistics, Inc. (10) (13)	Logistics and Distribution Services Provider for Large Volume Mailers	12.00% Secured Debt (Maturity - August 15, 2019)	None	1,942		1,914		1,916
															11,353		11,353
Market Force Information, Inc. (10) (13)										Provider of Customer Experience Management Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.74%, Secured Debt (Maturity - July 28, 2022) (8)	1 month LIBOR	5,700		5,617		5,617
											LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.74%, Secured Debt (Maturity - July 28, 2022) (8)	1 month LIBOR	50		50		50
											Member Units (170,000 units)	—	—		3,675		3,275
															9,342		8,942
M.H. Corbin Holding LLC (10) (13)										Manufacturer and Distributor of Traffic Safety Products	10.00% Current / 3.00% PIK Secured Debt (Maturity - August 31, 2020) (18)	None	3,066		3,032		2,934
											Preferred Member Units (1,000 units)	—	—		1,500		250
															4,532		3,184
Mystic Logistics Holdings, LLC (10) (13)										Logistics and Distribution Services Provider for Large Volume Mailers	12.00% Secured Debt (Maturity - August 15, 2019)	None	1,884		1,871		1,877
											Common Stock (1,468 shares) (16)	—	—		680		52
															2,551		1,929
NexRev, LLC (10) (13)										Provider of Energy Efficiency Products & Services	11.00% Secured Debt (Maturity - February 28, 2023)	None	$	4,360	$	4,276	$	4,322
		Common Stock (1,468 shares) (16)	—	—		680		1,705			Preferred Member Units (21,600,000 units) (16)	—	—		1,720		1,972
						2,594		3,621							5,996		6,294
NuStep, LLC (10) (13)	Designer, Manufacturer and Distributor of Fitness Equipment	12.00% Secured Debt (Maturity - January 31, 2022)	None	5,150		5,047		5,048		Designer, Manufacturer and Distributor of Fitness Equipment	12.00% Secured Debt (Maturity - January 31, 2022)	None	5,150		5,072		5,073
		Preferred Member Units (102 units)	—	—		2,550		2,550			Preferred Member Units (102 units)	—	—		2,550		2,550
						7,597		7,598							7,622		7,623
SoftTouch Medical Holdings LLC (8) (10) (13)	Home Provider of Pediatric Durable Medical Equipment	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity - October 31, 2019)	1 month LIBOR	1,260		1,250		1,260
SI East, LLC (10) (13)										Rigid Industrial Packaging Manufacturing	10.25% Secured Debt (Maturity - August 31, 2023)	None	11,750		11,571		11,582
											Preferred Member Units (52 units)	—	—		2,000		2,000
															13,571		13,582
Tedder Acquisition, LLC (10) (13)										Manufacturer of Firearm Holsters and Accessories	12.00% Secured Debt (Maturity - August 31, 2023)	None	4,100		3,983		3,983
		Member Units (785 units) (16)	—	—		870		1,781			12.00% Secured Debt (Maturity - August 31, 2020)	None	120		118		118
						2,120		3,041			Preferred Member Units (110 units)	—	—		1,869		1,869
															5,970		5,970
Subtotal Affiliate Investments (4) (7% of total investments at fair value)						$	71,708	$	76,862

Subtotal Affiliate Investments (4) (13% of total investments at fair value)										Subtotal Affiliate Investments (4) (13% of total investments at fair value)					$	143,372	$	149,323

Non-Control/Non-Affiliate Investments (5)
AAC Holding Corp. (8)	Substance Abuse Treatment Service Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity - June 30, 2023)	3 month LIBOR	$	11,751	$	11,475	$	11,810
AAC Holdings Inc. (8)										Substance Abuse Treatment Service Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.28%, Secured Debt (Maturity - June 30, 2023)	3 month LIBOR	$	14,500	$	14,245	$	14,463
Adams Publishing Group, LLC (8) (11)	Local Newspaper Operator	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity - November 3, 2020)	3 month LIBOR	10,341		10,123		10,147		Local Newspaper Operator	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.93%, Secured Debt (Maturity - July 3, 2023)	3 month LIBOR	8,108		7,942		7,942
ADS Tactical, Inc. (8) (11)	Value-Added Logistics and Supply Chain Solutions Provider	LIBOR Plus 7.50% (Floor 0.75%), Current Coupon 9.19%, Secured Debt (Maturity - December 31, 2022)	3 month LIBOR	12,981		12,671		12,801
Aethon United BR, LP (8)(11)	Oil & Gas Exploration & Production	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.16%, Secured Debt (Maturity - September 8, 2023) (14)	1 month LIBOR	3,438		3,388		3,388
Ahead, LLC (8) (11)	IT Infrastructure Value Added Reseller	LIBOR Plus 6.50%, Current Coupon 8.20%, Secured Debt (Maturity - November 2, 2020)	3 month LIBOR	7,374		7,233		7,420
Allflex Holdings III Inc. (8)	Manufacturer of Livestock Identification Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.36%, Secured Debt (Maturity - July 19, 2021) (14)	3 month LIBOR	13,964		14,054		14,075
American Scaffold Holdings, Inc. (8) (11)	Marine Scaffolding Service Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.19%, Secured Debt (Maturity - March 31, 2022)	3 month LIBOR	7,031		6,948		6,996
											PRIME Plus 4.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - July 3, 2023)	PRIME	4,250		4,160		4,160
															12,102		12,102
American Teleconferencing Services, Ltd. (8)	Provider of Audio Conferencing and Video Collaboration Solutions	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.90%, Secured Debt (Maturity - December 8, 2021)	2 month LIBOR	$	9,532	$	8,684	$	9,407
ADS Tactical, Inc. (8) (11)										Value-Added Logistics and Supply Chain Solutions Provider to the Defense Industry	LIBOR Plus 6.25% (Floor 0.75%), Current Coupon 8.77%, Secured Debt (Maturity - July 26, 2023)	1 month LIBOR	16,416		16,319		15,306
Aethon United BR, LP (8) (11)										Oil & Gas Exploration & Production	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.14%, Secured Debt (Maturity - September 8, 2023) (14)	1 month LIBOR	4,063		4,011		3,817
Allen Media, LLC (8)										Operator of Cable Television Networks	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.21%, Secured Debt (Maturity - August 30, 2023)	3 month LIBOR	17,142		16,671		16,650
Allflex Holdings III Inc. (8)										Manufacturer of Livestock Identification Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.48%, Secured Debt (Maturity - July 19, 2021) (14)	3 month LIBOR	13,232		13,321		13,125
American Nuts, LLC (8) (11)										Roaster, Mixer and Packager of Bulk Nuts and Seeds	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.90%, Secured Debt (Maturity - April 10, 2023)	3 month LIBOR	11,194		10,965		10,475
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.85%, Secured Debt (Maturity - June 6, 2022) (14)	3 month LIBOR	5,571		5,335		5,260			LIBOR Plus 8.50% (Floor 1.00%), PIK 9.50%, Secured Debt (Maturity - April 10, 2023)	1 month LIBOR	1,125		1,107		1,107
						14,019		14,667							12,072		11,582
American Scaffold Holdings, Inc. (8) (11)										Marine Scaffolding Service Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - March 31, 2022)	3 month LIBOR	6,656		6,593		6,623
American Teleconferencing Services, Ltd. (8)										Provider of Audio Conferencing and Video Collaboration Solutions	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.09%, Secured Debt (Maturity - December 8, 2021)	3 month LIBOR	14,586		13,938		12,180
Apex Linen Service, Inc. (10) (13)	Industrial Launderers	16.00% Secured Debt (Maturity - October 30, 2022)	None	3,604		3,552		3,552		Industrial Launderers	16.00% Secured Debt (Maturity - October 30, 2022)	None	3,604		3,560		3,560
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity - October 30, 2022) (8)	1 month LIBOR	600		600		600			LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.35%, Secured Debt (Maturity - October 30, 2022) (8)	1 month LIBOR	600		600		600
						4,152		4,152							4,160		4,160
APTIM Corp										Engineering, Construction and Procurement	7.75% Secured Debt (Maturity - June 15, 2025)	None	$	6,952	$	6,163	$	5,284
Arcus Hunting, LLC (8) (11)	Manufacturer of Bowhunting and Archery Products and Accessories	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.34%, Secured Debt (Maturity - November 13, 2019)	1 month LIBOR	7,696		7,618		7,690		Manufacturer of Bowhunting and Archery Products and Accessories	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.40%, Secured Debt (Maturity - November 13, 2019)	1 month LIBOR	7,493		7,459		7,492
Arise Holdings, Inc. (11)										Tech-Enabled Business Process Outsourcing	Preferred Stock (1,000,000 shares)	—	—		1,000		1,704
ASC Ortho Management Company, LLC (11)										Provider of Orthopedic Services	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.90%, Secured Debt (Maturity - August 31, 2023) (8)	3 month LIBOR	4,660		4,560		4,574
											13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)	None	1,571		1,532		1,532
															6,092		6,106
ATI Investment Sub, Inc. (8)	Manufacturer of Solar Tracking Systems	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.82%, Secured Debt (Maturity - June 22, 2021)	1 month LIBOR	7,364		7,221		7,346		Manufacturer of Solar Tracking Systems	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.76%, Secured Debt (Maturity - June 22, 2021)	1 month LIBOR	4,135		4,062		3,718
ATX Networks Corp. (8) (9)	Provider of Radio Frequency Management Equipment	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.33%, Current Coupon plus PIK 8.33%, Secured Debt (Maturity - June 11, 2021)	3 month LIBOR	14,474		14,253		14,384		Provider of Radio Frequency Management Equipment	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.39%, Current Coupon plus PIK 9.39%, Secured Debt (Maturity - June 11, 2021)	3 month LIBOR	13,982		13,827		13,284
BarFly Ventures, LLC (11)	Casual Restaurant Group	12.00% Secured Debt (Maturity - August 31, 2020)	None	2,905		2,863		2,905		Casual Restaurant Group	12.00% Secured Debt (Maturity - August 31, 2020)	None	3,395		3,362		3,339
		Warrants (.410 equivalent units, Expiration - August 31, 2025)	—	—		158		175			Warrants (.410 equivalent units, Expiration - August 31, 2025)	—	—		158		137
		Options (.731 equivalent units)	—	—		133		309			Options (.99 equivalent units)	—	—		202		313
						3,154		3,389							3,722		3,789
BBB Tank Services, LLC (10) (13)	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market	15.00% Secured Debt (Maturity - April 8, 2021)	None	1,000		987		969		Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.35%, Secured Debt (Maturity - April 8, 2021) (8)	1 month LIBOR	1,000		992		962
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity - April 9, 2018) (8)	1 month LIBOR	200		200		200			Preferred Stock (non-voting)	—	—		28		28
		Member Units (200,000 units)	—	—		200		125			Member Units (200,000 units)	—	—		200		58
						1,387		1,294							1,220		1,048
Berry Aviation, Inc. (11)	Airline Charter Service Operator	Current Coupon 13.75%, Secured Debt (Maturity - January 30, 2020) (14)	None	1,407		1,395		1,407		Charter Airline Services	10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)	None	4,480		4,417		4,438
		Common Stock (138 shares)	—	—		100		252			Preferred Member Units (Berry Acquisition, LLC) (1,548,387 units, 8.00% cumulative) (16)	—	—		1,548		1,609
						1,495		1,659							5,965		6,047
BigName Commerce, LLC (8) (11)	Provider of Envelopes and Complimentary Stationery Products	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.59%, Secured Debt (Maturity - May 11, 2022)	1 month LIBOR	2,488		2,460		2,460		Provider of Envelopes and Complimentary Stationery Products	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.65%, Secured Debt (Maturity - May 11, 2022)	1 month LIBOR	2,462		2,441		2,370
Binswanger Enterprises, LLC (8) (11)	Glass Repair and Installation Service Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.49%, Secured Debt (Maturity - March 9, 2022)	3 month LIBOR	15,267		15,002		15,135
Binswanger Enterprises, LLC (11)										Glass Repair and Installation Service Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity - March 9, 2022) (8)	3 month LIBOR	14,270		14,073		13,651
		Member Units (1,050,000 Class A units)	—	—		1,050		1,000			Member Units (1,050,000 units)	—	—		1,050		1,330
						16,052		16,135							15,123		14,981
Bluestem Brands, Inc. (8)	Multi-Channel Retailer of General Merchandise	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.07%, Secured Debt (Maturity - November 6, 2020)	3 month LIBOR	13,005		12,836		9,158		Multi-Channel Retailer of General Merchandise	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.02%, Secured Debt (Maturity - November 6, 2020)	3 month LIBOR	12,198		12,087		7,888
Boccella Precast Products, LLC (8) (10) (13)	Manufacturer of Precast Hollow Core Concrete	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.34%, Secured Debt (Maturity - June 30, 2022)	1 month LIBOR	4,100		4,005		4,100
Boccella Precast Products, LLC (10) (13)										Manufacturer of Precast Hollow Core Concrete	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.40%, Secured Debt (Maturity - June 30, 2022) (8)	1 month LIBOR	3,931		3,856		3,931
		Member Units (540,000 units)	—	—		540		860			Member Units (540,000 units) (16)	—	—		540		1,270
						4,545		4,960							4,396		5,201
Brightwood Capital Fund Investments (9) (15)	Investment Partnership	LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 0.52%) (16)	—	—		4,075		3,443		Investment Partnership	LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.60%) (16)	—	—		4,075		3,421
		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 1.58%) (16)	—	—		2,037		2,037			LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.80%) (16)	—	—		4,037		4,126
						6,112		5,480							8,112		7,547
Brundage-Bone Concrete Pumping, Inc.	Construction Services Provider	10.38% Secured Debt (Maturity - September 1, 2023) (14)	None	12,000		12,074		12,720
Buca C, LLC (8) (10) (13)	Casual Restaurant Group	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.63%, Secured Debt (Maturity - June 30, 2020)	1 month LIBOR	$	13,536	$	13,386	$	13,386

Buca C, LLC (10) (13)										Casual Restaurant Group	LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.63%, Secured Debt (Maturity - June 30, 2020) (8)	1 month LIBOR	$	12,735	$	12,648	$	12,648
		Preferred Member Units (4 units, 6.00% cumulative) (16)	—	—		2,702		2,781			Preferred Member Units (4 units, 6.00% cumulative) (16)	—	—		2,866		2,955
						16,088		16,167							15,514		15,603
Cadence Aerospace, LLC (8) (11)	Aerospace and Defense	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.91%, Secured Debt (Maturity - November 14, 2023)	3 month LIBOR	15,000		14,853		14,853		Aerospace Manufacturing	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.06%, Secured Debt (Maturity - November 14, 2023)	3 month LIBOR	19,469		19,301		18,244
CAI Software, LLC (10) (13)	Provider of Specialized Enterprise Resource Planning Software	12.00% Secured Debt (Maturity - October 10, 2019)	None	1,021		1,005		1,021		Provider of Specialized Enterprise Resource Planning Software	12.00% Secured Debt (Maturity - December 7, 2023)	None	2,720		2,715		2,720
		Member Units (16,339 units) (16)	—	—		163		807			Member Units (16,742 units) (16)	—	—		188		679
						1,168		1,828							2,903		3,399
CapFusion Holding, LLC (9) (10) (13)	Business Lender	13.00% Secured Debt (Maturity - March 25, 2021) (18)	None	1,669		1,394		468
CDHA Management, LLC (8) (11)	Dental Services	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.78%, Secured Debt (Maturity - December 5, 2021)	3 month LIBOR	5,365		5,270		5,365
Central Security Group, Inc. (8)	Security Alarm Monitoring Service Provider	LIBOR Plus 5.63% (Floor 1.00%), Current Coupon 7.19%, Secured Debt (Maturity - October 6, 2021)	1 month LIBOR	7,481		7,462		7,518
Cenveo Corporation	Provider of Commercial Printing, Envelopes, Labels, Printed Office Products	6.00% Secured Debt (Maturity - August 1, 2019)	None	15,000		13,706		10,650		Provider of Digital Marketing Agency Services	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.54%, Secured Debt (Maturity - June 7, 2023) (8)	2 month LIBOR	4,995		4,618		4,742
Charlotte Russe, Inc. (8)	Fast-Fashion Retailer to Young Women	LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.89%, Secured Debt (Maturity - May 22, 2019)	3 month LIBOR	14,972		14,863		6,045
											Common Stock (138,889 shares)	—	—		4,163		2,153
															8,781		6,895
Clarius BIGS, LLC (11) (18)	Prints & Advertising Film Financing	15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	2,140		1,882		62		Prints & Advertising Film Financing	15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	2,128		1,870		32
		20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	773		680		22			20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	770		677		12
						2,562		84							2,547		44
Clickbooth.com, LLC (8) (11)	Provider of Digital Advertising Performance Marketing Solutions	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.01%, Secured Debt (Maturity - December 5, 2022)	1 month LIBOR	3,000		2,941		2,941		Provider of Digital Advertising Performance Marketing Solutions	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.90%, Secured Debt (Maturity - December 5, 2022)	3 month LIBOR	2,925		2,876		2,750
Construction Supply Investments, LLC (11)	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.57%, Secured Debt (Maturity - June 30, 2023) (8)	1 month LIBOR	7,125		7,090		7,090		Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.62%, Secured Debt (Maturity - June 30, 2023) (8)	2 month LIBOR	15,422		15,351		15,384
		Member units (20,000 units)	—	—		3,723		3,723			Member units (42,207 units)	—	—		4,221		4,290
						10,813		10,813							19,572		19,674
ContextMedia Health, LLC (8)	Provider of Healthcare Media Content	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity - December 23, 2021)	1 month LIBOR	9,500		8,685		6,413
CTVSH, PLLC (8) (11) (13)	Emergency Care and Specialty Service Animal Hospital	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.48%, Secured Debt (Maturity - August 3, 2022)	1 month LIBOR	2,963		2,907		2,907		Emergency Care and Specialty Service Animal Hospital	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity - August 3, 2022)	1 month LIBOR	2,813		2,768		2,735
Datacom, LLC (10) (13)	Technology and Telecommunications Provider	5.25% Current / 5.25% PIK, Current Coupon 10.50% Secured Debt (Maturity - May 30, 2019)	None	1,366		1,357		1,229
Datacom, LLC (10) (13) (18)										Technology and Telecommunications Provider	5.25% Current / 5.25% PIK, Current Coupon 10.50% Secured Debt (Maturity - May 30, 2019) (18)	None	1,384		1,377		1,082
		8.00% Secured Debt (Maturity - May 30, 2018)	None	175		175		175			8.00% Secured Debt (Maturity - May 30, 2018) (18)	None	200		200		188
		Class A Preferred Member Units (1,530 units, 15.00% cumulative) (16)	—	—		131		81			Class A Preferred Member Units (1,530 units)	—	—		144		—
		Class B Preferred Member Units (717 units)	—	—		670		—			Class B Preferred Member Units (717 units)	—	—		670		—
						2,333		1,485							2,391		1,270
Digital River, Inc. (8)	Provider of Outsourced e-Commerce Solutions and Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.08%, Secured Debt (Maturity - February 12, 2021)	3 month LIBOR	8,946		8,898		8,969		Provider of Outsourced e-Commerce Solutions and Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.78%, Secured Debt (Maturity - February 12, 2021)	3 month LIBOR	9,779		9,710		9,681
DTE Enterprises, LLC (11)										Industrial Powertrain Repair and Services	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.12%, Secured Debt (Maturity - April 13, 2023) (8)	3 month LIBOR	12,491		12,263		11,593
											Class AA Preferred Member Units (non-voting) (16)	—	—		758		778
											Class A Preferred Member Units (776,316 units) (16)	—	—		776		1,300
															13,797		13,671
Dynamic Communities, LLC (8) (11)										Developer of Business Events and Online Community Groups	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.80%, Secured Debt (Maturity - July 17, 2023)	3 month LIBOR	5,565		5,460		5,462
Elite SEM, Inc. (8) (11)										Provider of Digital Marketing Agency Services	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.27%, Secured Debt (Maturity - February 1, 2022)	3 month LIBOR	6,875		6,749		6,749
Epic Y-Grade Services, LP (8)										NGL Transportation & Storage	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.02%, Secured Debt (Maturity - June 13, 2024)	1 month LIBOR	17,500		17,174		16,625
Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft) (8) (9)	Technology-Based Performance Support Solutions	LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.82%, Secured Debt (Maturity - April 28, 2022) (14)	1 month LIBOR	10,901		10,510		9,725		Technology-Based Performance Support Solutions	LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 10.77%, Secured Debt (Maturity - April 28, 2022) (14)	1 month LIBOR	$	10,900	$	10,585	$	6,123
Extreme Reach, Inc. (8)	Integrated TV and Video Advertising Platform	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.59%, Secured Debt (Maturity - February 7, 2020)	3 month LIBOR	10,411		10,397		10,398		Integrated TV and Video Advertising Platform	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.78%, Secured Debt (Maturity - February 7, 2020)	1 month LIBOR	16,152		16,145		16,065
Felix Investments Holdings II, LLC (8) (11)	Oil and Gas Exploration and Production	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.90%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	$	3,333	$	3,267	$	3,267	Oil and Gas Exploration and Production	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.10%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	3,333		3,279		3,141
Flavors Holdings, Inc. (8)	Global Provider of Flavoring and Sweetening Products and Solutions	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.44%, Secured Debt (Maturity - April 3, 2020)	3 month LIBOR	12,407		11,853		11,507		Global Provider of Flavoring and Sweetening Products and Solutions	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.55%, Secured Debt (Maturity - April 3, 2020)	3 month LIBOR	11,666		11,367		10,849
GoWireless Holdings, Inc. (8) (12)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.16%, Secured Debt (Maturity - December 22, 2024)	3 month LIBOR	15,000		14,850		14,888
GST Autoleather, Inc. (8)	Automotive Leather Manufacturer	Prime Plus 6.50% (Floor 2.00%), Current Coupon 11.00%, Secured Debt (Maturity - July 10, 2020)	PRIME	17,384		16,898		13,994
GI KBS Merger Sub LLC (8)										Outsourced Janitorial Service Provider	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.02%, Secured Debt (Maturity - April 29, 2022) (14)	3 month LIBOR	14,700		14,634		14,828
Good Source Solutions, Inc. (8) (11)										Specialized Food Distributor	LIBOR Plus 8.34% (Floor 1.00%), Current Coupon 11.14%, Secured Debt (Maturity - June 29, 2023)	3 month LIBOR	5,000		4,952		4,952
GoWireless Holdings, Inc. (8)										Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.02%, Secured Debt (Maturity - December 22, 2024)	3 month LIBOR	15,740		15,609		15,313
HDC/HW Intermediate Holdings, LLC (8) (11)										Managed Services and Hosting Provider	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.29%, Secured Debt (Maturity - December 21, 2023)	3 month LIBOR	1,799		1,759		1,763
Hoover Group, Inc. (8) (9) (11)										Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.90%, Secured Debt (Maturity - January 28, 2021)	3 month LIBOR	14,697		14,089		13,815
		Prime Plus 6.50% (Floor 2.25%), Current Coupon 11.00%, Secured Debt (Maturity - April 5, 2018)	PRIME	3,377		3,299		3,326			LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.71%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	5,125		4,664		4,657
						20,197		17,320							18,753		18,472
Guitar Center, Inc.	Musical Instruments Retailer	6.50% Secured Debt (Maturity - April 15, 2019)	None	15,015		14,490		13,889
Hojeij Branded Foods, LLC (8) (11)	Multi-Airport, Multi-Concept Restaurant Operator	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.57%, Secured Debt (Maturity - July 20, 2022)	1 month LIBOR	12,107		12,000		12,107
Hoover Group, Inc. (8) (9) (11)	Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.70%, Secured Debt (Maturity - January 28, 2021)	3 month LIBOR	14,848		14,030		13,656
Hunter Defense Technologies, Inc. (8)	Provider of Military and Commercial Shelters and Systems	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.35%, Secured Debt (Maturity - August 5, 2019)	3 month LIBOR	14,552		14,161		14,389
Hunter Defense Technologies, Inc. (8) (11)										Provider of Military and Commercial Shelters and Systems	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.80%, Secured Debt (Maturity - March 29, 2023)	3 month LIBOR	8,811		8,531		8,262
Hydrofarm Holdings, LLC (8) (11)	Wholesaler of Horticultural Products	LIBOR Plus 7.00%, Current Coupon 8.49%, Secured Debt (Maturity - May 12, 2022)	1 month LIBOR	6,666		6,546		6,657		Wholesaler of Horticultural Products	LIBOR Plus 10.00%, Current Coupon 3.62% / 8.61% PIK, Current Coupon Plus PIK 12.30%, Secured Debt (Maturity - May 12, 2022)	1 month LIBOR	7,214		7,084		5,643
iEnergizer Limited (8) (9)	Provider of Business Outsourcing Solutions	LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.57%, Secured Debt (Maturity - May 1, 2019)	1 month LIBOR	10,644		10,408		10,618		Provider of Business Outsourcing Solutions	LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 8.53%, Secured Debt (Maturity - May 1, 2019)	1 month LIBOR	12,086		12,050		12,101
Implus Footcare, LLC (8) (11)	Provider of Footwear and Other Accessories	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.44%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	14,491		14,299		14,394		Provider of Footwear and Related Accessories	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.55%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	17,153		17,000		16,762
Independent Pet Partners Intermediate Holdings, LLC (11)										Omnichannel Retailer of Specialty Pet Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.90%, Secured Debt (Maturity - November 19, 2023) (8)	6 month LIBOR	1,589		1,557		1,557
											Member Units (1,191,667 units)	—	—		1,192		1,192
															2,749		2,749
Industrial Services Acquisitions, LLC (11)	Industrial Cleaning Services	11.25% Current / 0.75% PIK, Current Coupon 12.00%, Unsecured Debt (Maturity - December 17, 2022) (17)	None	10,603		10,429		10,603		Industrial Cleaning Services	6.00% Current / 7.00% PIK, Current Coupon 13.00%, Unsecured Debt (Maturity - December 17, 2022) (17)	None	11,198		11,048		10,246
		Member Units (Industrial Services Investments, LLC) (2,100,000 units)	—	—		2,100		1,890			Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)	—	—		202		202
						12,529		12,493			Member Units (Industrial Services Investments, LLC) (2,100,000 units)	—	—		2,100		490
															13,350		10,938
Inn of the Mountain Gods Resort and Casino	Hotel & Casino Owner & Operator	9.25% Secured Debt (Maturity - November 30, 2020)	None	10,749		10,620		9,782		Hotel & Casino Owner & Operator	9.25% Secured Debt (Maturity - November 30, 2020) (14)	None	8,254		8,254		7,882
iPayment, Inc. (8)	Provider of Merchant Acquisition	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.62%, Secured Debt (Maturity - April 11, 2023)	3 month LIBOR	11,970		11,970		12,090
iQor US Inc. (8)	Business Process Outsourcing Services Provider	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.34%, Secured Debt (Maturity - April 1, 2021)	3 month LIBOR	7,678		7,338		7,649
IronGate Energy Services, LLC (18)	Oil and Gas Services	11.00% Secured Debt (Maturity - July 1, 2018) (18)	None	5,825		5,827		2,039
Intermedia Holdings, Inc. (8)										Unified Communications as a Service	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity - July 19, 2025)	1 month LIBOR	11,571		11,461		11,557
Isagenix International, LLC (8)										Direct Marketer of Health and Wellness Products	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.55%, Secured Debt (Maturity - June 14, 2025)	3 month LIBOR	6,268		6,208		6,095
JAB Wireless, Inc. (8) (11)										Fixed Wireless Broadband Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.39%, Secured Debt (Maturity - May 2, 2023)	1 month LIBOR	14,888		14,753		13,987
Jacent Strategic Merchandising, LLC (8) (11)										General Merchandise Distribution	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.27%, Secured Debt (Maturity -September 16, 2020)	3 month LIBOR	$	10,740	$	10,641	$	10,688
Jackmont Hospitality, Inc. (8) (11)										Franchisee of Casual Dining Restaurants	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.26%, Secured Debt (Maturity - May 26, 2021)	1 month LIBOR	8,329		8,314		8,329
Jacuzzi Brands LLC (8)										Manufacturer of Bath and Spa Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.52%, Secured Debt (Maturity - June 28, 2023)	1 month LIBOR	5,775		5,681		5,746
Joerns Healthcare, LLC (8)	Manufacturer and Distributor of Health Care Equipment & Supplies	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.48%, Secured Debt (Maturity - May 9, 2020)	3 month LIBOR	11,119		10,948		10,359		Manufacturer and Distributor of Health Care Equipment & Supplies	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.71%, Secured Debt (Maturity - May 9, 2020)	3 month LIBOR	11,119		11,016		9,965
Kellermeyer Bergensons Services, LLC (8)	Outsourced Janitorial Services to Retail/Grocery Customers	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.88%, Secured Debt (Maturity - April 29, 2022) (14)	3 month LIBOR	14,700		14,618		14,241
Keypoint Government Solutions, Inc. (8) (11)	Provider of Pre-Employment Screening Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.35%, Secured Debt (Maturity - April 18, 2024)	3 month LIBOR	12,031		11,921		12,031
LaMi Products, LLC (8) (11)	General Merchandise Distribution	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.05%, Secured Debt (Maturity -September 16, 2020)	3 month LIBOR	11,110		10,988		11,085
Larchmont Resources, LLC (8)	Oil & Gas Exploration & Production	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.53%, Secured Debt (Maturity - August 7, 2020)	3 month LIBOR	4,118		4,118		4,076
Knight Energy Services LLC (11)										Oil and Gas Equipment & Services	8.50% Secured Debt (Maturity - February 9, 2024)	None	760		760		760
		Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)	—	—		601		1,658			Class A-2 Shares (25,692 units)	—	—		1,843		1,843
						4,719		5,734							2,603		2,603
LJ Host Merger Sub, Inc. (8)	Managed Services and Hosting Provider	LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.44%, Secured Debt (Maturity - December 13, 2019)	3 month LIBOR	$	16,137	$	15,744	$	15,714
Larchmont Resources, LLC (9)										Oil & Gas Exploration & Production	LIBOR Plus 9.00% (Floor 1.00%) PIK, 11.77% PIK, Secured Debt (Maturity - August 7, 2020) (8)	3 month LIBOR	3,898		3,898		3,820
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.44%, Secured Debt (Maturity - December 13, 2018)	3 month LIBOR	2,433		2,358		2,293			Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)	—	—		601		1,201
						18,102		18,007							4,499		5,021
Logix Acquisition Company, LLC (8) (11)	Competitive Local Exchange Carrier	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.28%, Secured Debt (Maturity - August 9, 2024) (23)	1 month LIBOR	9,730		9,632		9,839		Competitive Local Exchange Carrier	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.27%, Secured Debt (Maturity - December 22, 2024) (23)	1 month LIBOR	9,628		9,542		9,532
LSF9 Atlantis Holdings, LLC (8)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.36%, Secured Debt (Maturity - May 1, 2023)	1 month LIBOR	13,825		13,722		13,897		Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.38%, Secured Debt (Maturity - May 1, 2023)	1 month LIBOR	13,475		13,390		12,863
Lulu’s Fashion Lounge, LLC (8)(11)	Fast Fashion E-Commerce Retailer	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.57%, Secured Debt (Maturity - August 28, 2022)	1 month LIBOR	6,690		6,496		6,766
Lulu’s Fashion Lounge, LLC (8) (11)										Fast Fashion E-Commerce Retailer	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.52%, Secured Debt (Maturity - August 28, 2022)	1 month LIBOR	6,179		6,028		5,994
Meisler Operating, LLC (10) (13)	Provider of Short Term Trailer and Container Rental	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - June 7, 2022) (8)	3 month LIBOR	4,200		4,095		4,104		Provider of Short Term Trailer and Container Rental	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.90%, Secured Debt (Maturity - June 7, 2022) (8)	1 month LIBOR	5,120		5,015		5,022
		Member Units (Milton Meisler Holdings, LLC) (8,000 units)	—	—		800		848			Member Units (Milton Meisler Holdings, LLC) (12,139 units)	—	—		1,214		1,445
						4,895		4,952							6,229		6,467
MHVC Acquisition Corp. (8)	Provider of Differentiated Information Solutions, Systems Engineering and Analytics	LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.95%, Secured Debt (Maturity - April 29, 2024)	1 month LIBOR	10,448		10,399		10,578		Provider of Differentiated Information Solutions, Systems Engineering and Analytics	LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 8.06%, Secured Debt (Maturity - April 29, 2024)	3 month LIBOR	7,860		7,817		7,664
Minute Key, Inc. (10) (13)	Operator of Automated Key Duplication Kiosk	Warrants (359,352 equivalent units, Expiration - May 20, 2025)	—	—		70		293
NBG Acquisition, Inc. (8)	Wholesaler of Home Decor Products	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.19%, Secured Debt (Maturity - April 26, 2024)	1 month LIBOR	4,402		4,336		4,452
Mills Fleet Farm Group LLC (8) (11)										Omnichannel Retailer of Work, Farm and Lifestyle Merchandise	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.77%, Secured Debt (Maturity - October 24, 2024)	1 month LIBOR	15,000		14,707		15,000
Mobileum, Inc. (8) (11)										Provider of Big Data Analytics to Telecom Service Providers	LIBOR Plus 10.25% (Floor 0.75%), Current Coupon 13.06%, Secured Debt (Maturity - May 1, 2022) (14)	2 month LIBOR	7,500		7,429		7,429
New Era Technology, Inc. (8) (11)										Managed Services and Hosting Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.99%, Secured Debt (Maturity - June 22, 2023)	1 month LIBOR	7,654		7,518		7,616
New Media Holdings II LLC (8) (9)	Local Newspaper Operator	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.82%, Secured Debt (Maturity - July 14, 2022)	1 month LIBOR	17,033		16,762		17,176		Local Newspaper Operator	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.77%, Secured Debt (Maturity - July 14, 2022)	1 month LIBOR	9,718		9,622		9,645
NNE Issuer, LLC (8) (11)	Oil & Gas Exploration & Production	LIBOR Plus 8.00%, Current Coupon 9.49%, Secured Debt (Maturity - March 2, 2022)	3 month LIBOR	11,958		11,851		11,854
NNE Partners, LLC (8) (11)										Oil & Gas Exploration & Production	LIBOR Plus 8.00%, Current Coupon 10.74%, Secured Debt (Maturity - March 2, 2022)	3 month LIBOR	20,417		20,271		19,572
North American Lifting Holdings, Inc. (8)	Crane Service Provider	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.19%, Secured Debt (Maturity - November 27, 2020)	3 month LIBOR	6,310		5,666		5,912		Crane Service Provider	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity - November 27, 2020)	3 month LIBOR	6,244		5,803		5,701
Novetta Solutions, LLC (8)	Provider of Advanced Analytics Solutions for Defense Agencies	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.70%, Secured Debt (Maturity - October 17, 2022)	3 month LIBOR	9,625		9,382		9,364		Provider of Advanced Analytics Solutions for Defense Agencies	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.53%, Secured Debt (Maturity - October 17, 2022)	1 month LIBOR	14,977		14,648		14,602
NTM Acquisition Corp. (8)	Provider of B2B Travel Information Content	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.94%, Secured Debt (Maturity - June 7, 2022)	3 month LIBOR	10,908		10,797		10,853		Provider of B2B Travel Information Content	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.96%, Secured Debt (Maturity - June 7, 2022)	3 month LIBOR	4,092		4,060		4,051
Paris Presents, Inc. (8)	Branded Cosmetic and Bath Accessories	LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - December 31, 2021) (14)	1 month LIBOR	10,000		9,899		9,950
Parq Holdings, LP (8) (9)	Hotel and Casino Operator	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.19%, Secured Debt (Maturity - December 17, 2020)	3 month LIBOR	12,469		12,317		12,547
Pasha Group (8)										Diversified Logistics and Transportation Provided	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.06%, Secured Debt (Maturity - January 26, 2023)	2 month LIBOR	10,938		10,642		11,006

Permian Holdco 2, Inc.	Storage Tank Manufacturer	14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)	None	765		765		765		Storage Tank Manufacturer	14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)	None	$	990	$	990	$	990
		Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 units) (12.00% Cumulative) (16)	—	—		1,997		2,449			Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 shares)	—	—		1,997		2,299
		Common Shares (Permian Holdco 1, Inc.) (386,255 units)	—	—		—		350			Common Shares (Permian Holdco 1, Inc.) (386,255 shares)	—	—		—		—
						2,762		3,564							2,987		3,289
Permian Holdings, Inc.	Storage Tank Manufacturer	10.50% Secured Debt (Maturity - January 15, 2018)	None	1,000		968		290
Pernix Therapeutics Holdings, Inc. (11)	Pharmaceutical Royalty - Anti-Migraine	12.00% Secured Debt (Maturity - August 1, 2020)	None	2,737		2,717		1,725		Pharmaceutical Royalty	12.00% Secured Debt (Maturity - August 1, 2020)	None	2,652		2,639		1,782
PPC/Shift, LLC (8) (11)	Provider of Digital Solutions to Automotive Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.69%, Secured Debt (Maturity - December 22, 2021)	3 month LIBOR	6,825		6,704		6,825
Pier 1 Imports, Inc. (8)										Decorative Home Furnishings Retailer	LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 6.38%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	7,455		7,164		5,358
PricewaterhouseCoopers Public Sector LLP (8)										Provider of Consulting Services to Governments	LIBOR Plus 7.50%, Current Coupon 9.74%, Secured Debt (Maturity - May 1, 2026) (14)	1 month LIBOR	13,100		13,054		13,166
Prowler Acquisition Corporation (8)	Specialty Distributor to the Energy Sector	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.34%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	12,412		11,199		11,854		Specialty Distributor to the Energy Sector	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	12,280		11,624		12,096
Renaissance Learning, Inc. (8)	Technology-based K-12 Learning Solutions	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity - April 11, 2022) (14)	3 month LIBOR	$	12,695	$	12,359	$	12,767
Resolute Industrial, LLC (8) (11)	HVAC Equipment Rental and Remanufacturing	LIBOR Plus 7.62% (Floor 1.00%), Current Coupon 8.95%, Secured Debt (Maturity - July 26, 2022) (24)	3 month LIBOR	17,086		16,679		16,774
		Common Stock (601 units)	—	—		750		750
						17,429		17,524
RGL Reservoir Operations, Inc. (9) (11)	Oil & Gas Equipment & Services	1.00% Current / 9.00% PIK Secured Debt (Maturity - December 23, 2024)	None	721		407		407
Resolute Industrial, LLC (11)										HVAC Equipment Rental and Remanufacturing	Class A units (601 units)	—	—		750		920
RM Bidder, LLC (11)	Full-scale Film and Television Production and Distribution	Common Stock (1,854 units)	—	—		31		13		Scripted and Unscripted TV and Digital Programming Provider	Common Stock (1,854 shares)	—	—		31		7
		Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)	—	—		284		—			Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)	—	—		284		—
		Series B Warrants (93,686 equivalent units, Expiration - October 20, 2025)	—	—		—		—			Series B Warrants (93,686 equivalent units, Expiration - October 20, 2025)	—	—		—		—
						315		13							315		7
Salient Partners, LP (8)	Provider of Asset Management Services	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity - June 9, 2021)	3 month LIBOR	11,042		10,748		10,711
Smart Modular Technologies, Inc. (8) (9) (11)	Provider of Specialty Memory Solutions	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 7.66%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	14,625		14,351		14,552
Sorenson Communications, Inc.	Manufacturer of Communication Products for Hearing Impaired	9.00% Secured Debt (Maturity - October 31, 2020) (14)	None	6,616		6,457		6,599
Salient Partners, LP (8) (11)										Provider of Asset Management Services	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.27%, Secured Debt (Maturity - June 9, 2021)	1 month LIBOR	7,313		7,300		7,300
Slick Software Holdings LLC (10) (13)										Text Messaging Marketing Platform	14.00% Secured Debt (Maturity - September 13, 2023)	None	1,800		1,703		1,703
		LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.00%, Secured Debt (Maturity - April 30, 2020) (8)	3 month LIBOR	2,947		2,932		2,971			Member units (17,500 units)	—	—		175		175
						9,389		9,570			Warrants (4,521 equivalent units, Expiration - September 13, 2028)	—	—		45		45
															1,923		1,923
Smart Modular Technologies, Inc. (8) (9) (11)										Provider of Specialty Memory Solutions	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.86%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	19,000		18,793		19,095
Sorenson Communications, Inc. (8)										Manufacturer of Communication Products for Hearing Impaired	LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.56%, Secured Debt (Maturity - April 30, 2020)	3 month LIBOR	2,916		2,908		2,905
STL Parent Corp. (8)										Manufacturer and Servicer of Tank and Hopper Railcars	LIBOR Plus 7.00%, Current Coupon 9.52%, Secured Debt (Maturity - December 5, 2022)	1 month LIBOR	12,000		11,585		11,639
Strike, LLC (8)	Pipeline Construction and Maintenance Services	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - November 30, 2022)	3 month LIBOR	9,500		9,251		9,643		Pipeline Construction and Maintenance Services	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity - November 30, 2022)	3 month LIBOR	9,000		8,803		9,011
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.45%, Secured Debt (Maturity - May 30, 2019)	3 month LIBOR	2,500		2,480		2,513
						11,731		12,156
Synagro Infrastructure Company, Inc. (8)	Waste Management Services	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.19%, Secured Debt (Maturity - August 22, 2020)	3 month LIBOR	6,411		6,235		6,023
TE Holdings, LLC	Oil & Gas Exploration & Production	Common Units (72,785 units)	—	—		728		118		Oil & Gas Exploration & Production	Common Units (72,785 units)	—	—		728		49
Teleguam Holdings, LLC (8)	Cable and Telecom Services Provider	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.07%, Secured Debt (Maturity - April 12, 2024) (14)	1 month LIBOR	7,750		7,602		7,808		Cable and Telecom Services Provider	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.02%, Secured Debt (Maturity - April 12, 2024) (14)	1 month LIBOR	7,750		7,620		7,798
TGP Holdings III LLC (8)										Outdoor Cooking & Accessories	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.30%, Secured Debt (Maturity - September 25, 2025) (14)	3 month LIBOR	5,000		5,000		4,850
TMC Merger Sub Corp (8)	Refractory & Maintenance Services Provider	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity - October 31, 2022) (25)	1 month LIBOR	19,140		18,993		19,237		Refractory & Maintenance Services Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.31%, Secured Debt (Maturity - October 31, 2022) (25)	1 month LIBOR	18,657		18,448		18,564
TOMS Shoes, LLC (8)	Global Designer, Distributor, and Retailer of Casual Footwear	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.98%, Secured Debt (Maturity - October 30, 2020)	3 month LIBOR	4,863		4,604		2,893		Global Designer, Distributor, and Retailer of Casual Footwear	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.30%, Secured Debt (Maturity - October 30, 2020)	3 month LIBOR	4,813		4,641		3,798
Turning Point Brands, Inc. (8) (9) (11)	Marketer/Distributor of Tobacco Products	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.61%, Secured Debt (Maturity - May 17, 2022) (24)	3 month LIBOR	8,436		8,364		8,605		Marketer/Distributor of Tobacco Products	LIBOR Plus 7.00%, Current Coupon 9.46%, Secured Debt (Maturity - March 7, 2024) (14)	1 month LIBOR	8,500		8,424		8,585
TVG-I-E CMN Acquisition, LLC (8) (11)	Organic Lead Generation for Online Postsecondary Schools	LIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 7.56%, Secured Debt (Maturity - November 3, 2021)	1 month LIBOR	8,170		8,031		8,170		Organic Lead Generation for Online Postsecondary Schools	LIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity - November 3, 2021)	1 month LIBOR	19,504		19,197		19,455
U.S. Telepacific Corp. (8)	Provider of Communications and Managed Services	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.69%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	16,421		16,027		15,754		Provider of Communications and Managed Services	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.80%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	$	16,453	$	16,110	$	15,449
USJ-IMECO Holding Company, LLC (8)	Marine Interior Design and Installation	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity - April 16, 2020)	3 month LIBOR	8,243		8,224		8,202


Valley Healthcare Group, LLC (8) (10) (13)	Provider of Durable Medical Equipment	LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.86%, Secured Debt (Maturity - December 29, 2020)	1 month LIBOR	$	2,942	$	2,901	$	2,901
		Preferred Member Units (Valley Healthcare Holding, LLC) (400 units)	—	—		400		400
						3,301		3,301
VIP Cinema Holdings, Inc. (8)	Supplier of Luxury Seating to the Cinema Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity - March 1, 2023)	3 month LIBOR	9,625		9,582		9,721		Supplier of Luxury Seating to the Cinema Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.53%, Secured Debt (Maturity - March 1, 2023)	1 month LIBOR	9,125		9,090		8,960
Vistar Media, Inc. (8) (11)	Operator of Digital Out-of-Home Advertising Platform	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.69%, Secured Debt (Maturity - February 16, 2022)	3 month LIBOR	3,319		3,046		3,102
Vistar Media, Inc. (11)										Operator of Digital Out-of-Home Advertising Platform	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.74%, Secured Debt (Maturity - February 16, 2022) (8)	3 month LIBOR	3,263		3,046		2,987
		Warrants (70,207 equivalent units, Expiration - February 17, 2027)	—	—		331		500			Warrants (70,207 equivalent units, Expiration - February 17, 2027)	—	—		331		790
						3,377		3,602							3,377		3,777
Volusion, LLC (10) (13)	Provider of Online Software-as-a-Service eCommerce Solutions	11.50% Secured Debt (Maturity - January 24, 2020)	None	7,172		6,453		6,453		Provider of Online Software-as-a-Service eCommerce Solutions	11.50% Secured Debt (Maturity - January 24, 2020)	None	8,260		7,843		7,843
		Preferred Member Units (2,090,001 units)	—	—		6,000		6,000			8.00% Unsecured Convertible Debt (Maturity - November 16, 2023)	None	127		127		127
		Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)	—	—		1,104		891			Preferred Member Units (2,090,001 units)	—	—		6,000		6,000
						13,557		13,344			Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)	—	—		1,104		810
Wellnext, LLC (8) (11)	Manufacturer of Supplements and Vitamins	LIBOR Plus 10.10% (Floor 1.00%), Current Coupon 11.67%, Secured Debt (Maturity - July 21, 2022) (23)	1 month LIBOR	9,930		9,856		9,930
															15,074		14,780
Wireless Vision Holdings, LLC (8) (11)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.27%, Secured Debt (Maturity - September 29, 2022) (23)	1 month LIBOR	12,899		12,574		12,574		Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 11.43%, Secured Debt (Maturity - September 29, 2022) (23)	1 month LIBOR	14,198		13,932		13,338
Wirepath, LLC (8)	E-Commerce Provider Into Connected Home Market	LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.87%, Secured Debt (Maturity - August 5, 2024)	2 month LIBOR	11,471		11,416		11,629

Subtotal Non-Control/Non-Affiliate Investments (5) (88% of total portfolio investments at fair value)						$	948,029	$	922,898
YS Garments, LLC (8)										Designer and Provider of Branded Activewear	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.42%, Secured Debt (Maturity - August 9, 2024)	1 month LIBOR	7,453		7,382		7,379
Subtotal Non-Control/Non-Affiliate Investments (5) (81% of total portfolio investments at fair value)										Subtotal Non-Control/Non-Affiliate Investments (5) (81% of total portfolio investments at fair value)					$	932,495	$	901,518

Total Portfolio Investments						$	1,064,329	$	1,049,439						$	1,121,688	$	1,106,568

Short Term Investments (20)
Fidelity Institutional Money Market Funds (21)	—	Prime Money Market Portfolio, Class III Shares	—	—		$	11,335	$	11,335	—	Prime Money Market Portfolio, Class III Shares	—	—		$	4,450	$	4,450
US Bank Money Market Account (21)	—			—		18,613		18,613		—			—		15,574		15,574

Total Short Term Investments						$	29,948	$	29,948						$	20,024	$	20,024

(1) All investments are Middle Market portfolio investments, unless otherwise noted. All of the assets of the Company are encumbered as security for the Company’s credit agreements. See Note 6 -— Borrowings.

(2) Debt investments are income producing, unless otherwise noted. Equity investments and warrants are non-income producing, unless otherwise noted.

(3) See Note 3 -— Fair Value Hierarchy for Investments for summary geographic location of portfolio companies.

(4) Affiliate investments are defined by the 1940 Act, as investments in which between 5% and 25% of the voting securities are owned, or an investment in an investment company’s investment adviser, and the investments are not classified as Control investments. Fair value as of December 31, ~~2016~~2017 and December 31, ~~2017~~2018 along with transactions during the year ended December 31, ~~2017~~2018 in these affiliated investments were as follows (in thousands):


			Twelve Months Ended December 31, 2017										Twelve Months Ended December 31, 2017										Twelve Months Ended December 31, 2018										Twelve Months Ended December 31, 2018
Portfolio Company	Fair Value at December 31, 2016		Gross Additions (Cost)^*		Gross Reductions (Cost)^**			Net Unrealized Gain (Loss)			Fair Value at December 31, 2017		Net Realized Gain (Loss)		Interest Income		Fee Income		Dividend Income
Affiliate Investments																					Fair Value at December 31, 2017		Gross Additions (Cost)^*		Gross Reductions (Cost)^**			Net Unrealized Gain (Loss)^***			Fair Value at December 31, 2018		Net Realized Gain (Loss)		Interest Income		Fee Income		Dividend Income

Affiliate Investments
AFG Capital Group, LLC
Member units	$	687	$	—	$	—		$	210		$	897	$	—	$	—	$	—	$	18	$	897	$	1	$	—		$	97		$	995	$	—	$	—	$	—	$	10
Warrants	167		—		—			48			215		—		—		—		—		215		—		—			22			237		—		—		—		—
Brewer Crane Holdings, LLC
Term loan																					—		2,489		(142		)	—			2,347		—		298		—		—
Preferred member units																					—		1,070		—			—			1,070		—		—		—		29
Chamberlin Holding, LLC
Term loan																					—		5,417		(484		)	—			4,933		—		587		2		—
Member units																					—		2,861		—			1,874			4,735		—		—		35		354
Member units (Langfield RE, LLC)																					—		183		—			—			183		—		—		—		183
Charlotte Russe, Inc.
Term loan																					—		6,285		(49		)	(3,146		)	3,090		—		492		—		—
Common stock																					—		2,470		—			(2,470		)	—		—		—		—		—
Charps, LLC
Term loan	—		4,817		(320		)	3			4,500		—		533		1		—		$	4,500	$	50	$	(1,627	)	$	52		$	2,975	$	—	$	537	$	—	$	—
Term loan																					—		402		(402		)	—			—		—		11		2		—
Preferred member units	—		101		—			62			163		—		—		—		—		163		1		—			404			568		—		—		—		62

Clad-Rex Steel, LLC
Term loan	$	3,449	$	16	$	(201	)	$	56		$	3,320	$	—	$	392	$	—	$	—
Term loan	99		—		(99		)	—			—		—		—		—		—		3,320		16		(298		)	(18		)	3,020		—		387		—		—
Member units	1,820		—		—			555			2,375		—		—		—		103		2,375		1		(1		)	278			2,653		—		—		—		—
Term loan (Clad-Rex Steel RE Investor, LLC)	298		—		(5		)	—			293		—		30		—		—		293		—		(5		)	—			288		—		29		—		—
Member units (Clad-Rex Steel RE Investor, LLC)	53		—		—			17			70		—		—		—		—		70		—		—			18			88		—		—		—		152
EIG Traverse Co-Investment, LP
LP interests	9,905		951		(10,756		)	(100		)	—		951		—		—		871
Freeport First Lien Loan Fund III, LP
Digital Products Holdings, LLC
Term loan																					—		6,617		(297		)	—			6,320		—		620		—		—
Preferred member units																					—		2,200		(84		)	—			2,116		—		—		—		38
Direct Marketing Solutions, Inc.
Term loan																					—		4,727		(322		)	(1		)	4,404		—		572		3		—
Preferred stock																					—		2,100		—			1,625			3,725		—		—		—		—
Freeport Financial Funds
LP interests	4,763		3,795		—			(52		)	8,506		—		—		—		617		8,506		2,597		—			(123		)	10,980		—		—		—		1,038
Gamber-Johnson Holdings, LLC
Term loan	5,964		19		(170		)	37			5,850		—		755		—		—		5,850		26		(479		)	(26		)	5,371		—		656		—		104
Common stock	4,730		—		—			1,113			5,843		—		—		54		105
Member units																					5,843		—		—			5,522			11,365		—		—		12		322
Guerdon Modular Holdings, Inc.
Term loan	2,642		22		(1		)	(3		)	2,660		—		366		—		—		2,660		516		(37		)	(138		)	3,001		—		412		—		—
Term loan																					—		70		(70		)	—			—				2
Common stock	20		—		—			(20		)	—		—		—		—		—		—		—		—			—			—		—		—		—		—
Class B preferred units	285		—		—			(285		)	—		—		—		—		—
Class B preferred stock																					—		—		—			—			—		—		—		—		—
Gulf Publishing Holdings, LLC
Term loan	2,455		710		(14		)	—			3,151		—		387		1		—		3,151		13		(33		)	—			3,131		—		415		—		—
Term loan	—		20		—			—			20		—		—		—		—		20		40		(60		)	—			—		—		3		—		—
Member units	781		142		—			287			1,210		—		—		10		—		1,210		—		(1		)	(179		)	1,030		—		—		—		—
Harris Preston Fund Investments
LP interests (HPEP 3, LP)	—		943		—			—			943		—		—		—		—		943		790		—			—			1,733		—		—		—		—
LP interests (2717 HM, LP)	—		536		—			—			536		—		—		—		—		536		504		—			93			1,133		—		—		—		—
Hawk Ridge Systems, LLC
Term loan	2,451		1,212		(149		)	60			3,574		—		301		—		—		3,574		14		—			(13		)	3,575		—		396		—		—
Preferred member units	713		—		—			237			950		—		—		—		65		950		—		—			865			1,815		—		—		—		102
Preferred member units (HRS Services, ULC)	38		—		—			12			50		—		—		—		1		50		1		—			44			95		—		—		—		—
HWT, LLC
HW Temps, LLC
Term loan																					2,454		14		—			16			2,484		—		366		—		—
Preferred member units																					985		1		—			—			986		—		—		35		8
KMC Investor, LLC
Term loan																					—		7,005		(210		)	—			6,795		—		144		—		—
Term loan																					—		266		(7		)	—			259		—		6		—		—
Term loan	2,591		13		(150		)	—			2,454		—		370		—		—		—		1,002		(11		)	—			991		—		16		—		—
Member units	985		—		—			—			985		—		—		35		—		—		248		—			—			248		—		—		—		—
Member units (KMC RE Investor, LLC)																					—		3,460		(400		)	—			3,060		—		—		—		—
Market Force Information, Inc.
Term loan	—		6,018		(286		)	—			5,732		—		324		—		—		5,732		25		(140		)	—			5,617		—		795		—		—
Member units	—		3,675		—			—			3,675		—		—		—		—
M.H. Corbin, LLC
Term loan	3,299		8		(177		)	—			3,130		—		382		—		—		—		170		(120		)	—			50		—		6		—		—
Member units	1,500		—		—			—			1,500		—		—		35		—		3,675		—		—			(400		)	3,275		—		—		—		—
Mystic Logistics, Inc.
M.H. Corbin Holding, LLC
Term loan																					3,130		64		(162		)	(98		)	2,934		—		461		—		—
Preferred member units																					1,500		—		—			(1,250		)	250		—		—		35		—
Mystic Logistics Holdings, LLC
Term loan	2,294		21		(352		)	(47		)	1,916		—		272		2		—		1,916		14		(58		)	5			1,877		—		247		—		—
Common stock	1,445		—		—			260			1,705		—		—		—		—		1,705		1		—			(1,654		)	52		—		—		—		—
NexRev, LLC
Term loan																					—		4,381		(98		)	39			4,322		—		404		—		—
Preferred member units																					—		1,720		—			252			1,972		—		—		3		15
NuStep, LLC
Term loan																					5,048		25		—			—			5,073		—		653		—		—
Preferred member units																					2,550		1		(1		)	—			2,550		—		—		—		—

SI East, LLC
Term loan	—		5,179		(131		)	—			5,048		—		603		—		—		$	—	$	12,311	$	(727	)	$	(2	)	$	11,582	$	—	$	431	$	—	$	—
Preferred member units	—		2,550		—			—			2,550		—		—		—		—		—		2,000		—			—			2,000		—		—		3		—
SoftTouch Medical Holdings, LLC
Term loan	1,260		5		—			(5		)	1,260		—		135		—		124		1,260		10		(1,260		)	(10		)	—		—		26		—		—
Member units	1,618		—		—			163			1,781		—		—		42		—		1,781		—		(870		)	(911		)	—		903		—		11		134
	$	56,312	$	30,753	$	(12,811	)	$	2,608		$	76,862	$	951	$	4,850	$	180	$	1,904
Tedder Acquisition, LLC
Term loan																					—		4,106		(123		)	—			3,983		—		174		—		—
Term loan																					—		120		(2		)	—			118		—		3		—		—
Preferred member units																					—		1,869		—			—			1,869		—		—		—		—
Total Affiliate Investments																					$	76,862	$	80,274	$	(8,580	)	$	767		$	149,323	$	903	$	9,149	$	141	$	2,551

* Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

*** Net unrealized gain (loss) does not included unrealized appreciation (depreciation) on unfunded commitments.

(5) Non-Control/Non-Affiliate investments are generally investments that are neither Control investments nor Affiliate investments.

(6) Control investments are defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained. Fair value as of December 31, ~~2016~~2017 and December 31, ~~2017~~2018 along with transactions during the year ended December 31, ~~2017~~2018 in these Control investments were as follows (in thousands):


			Twelve Months Ended December 31, 2017										Twelve Months Ended December 31, 2017										Twelve Months Ended December 31, 2018										Twelve Months Ended December 31, 2018
Portfolio Company	Fair Value at December 31, 2016		Gross Additions (Cost)^**		Gross Reductions (Cost)^***			Net Unrealized Gain (Loss)			Fair Value at December 31, 2017		Net Realized Gain (Loss)		Interest Income		Fee Income		Dividend Income
Control Investments																					Fair Value at December 31, 2017		Gross Additions (Cost)^**		Gross Reductions (Cost)^***			Net Unrealized Gain (Loss)			Fair Value at December 31, 2018		Net Realized Gain (Loss)		Interest Income		Fee Income		Dividend Income

Control Investments
Copper Trail Energy Fund I, LP
LP interests																					$	2,500	$	1,245	$	—		$	723		$	4,468	$	—	$	—	$	13	$	307
CTMH, LP
LP interests	$	—	$	2,500	$	—		$	—		$	2,500	$	—	$	—	$	—	$	—	—		872		—			—			872		—		—		—		—
GRT Rubber Technologies, LLC
Term loan	6,538		32		(824		)	(31		)	5,715		—		663		—		—		5,715		30		(917		)	(31		)	4,797		—		609		—		—
Member units	10,004		—		—			817			10,821		—		—		73		577		10,821		—		—			8,418			19,239		—		—		69		1,347
HMS-ORIX SLF LLC^*
Membership interests	—		30,000		—			643			30,643		—		—		—		450		30,643		—		—			(4,292		)	26,351		—		—		—		2,132
	$	16,542	$	32,532	$	(824	)	$	1,429		$	49,679	$	—	$	663	$	73	$	1,027
Total Control Investments																					$	49,679	$	2,147	$	(917	)	$	4,818		$	55,727	$	—	$	609	$	82	$	3,786

* Together with Orix, the Company ~~co-invests~~co-invested through HMS-ORIX, which is organized as a Delaware limited liability company. Pursuant to the terms of the limited liability company agreement and through representation on the HMS-ORIX Board of Managers, the Company and Orix each have 50% voting control of HMS-ORIX and together will agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. Although the Company owns more than 25% of the voting securities of HMS-ORIX, the Company does not have sole control over significant actions of HMS-ORIX for purposes of the 1940 Act or otherwise.

(7) Principal is net of repayments. Cost represents amortized cost which is net of repayments and adjusted for the amortization of premiums and/or accretion of discounts, as applicable.

(8) Index based floating interest rate is subject to contractual minimum interest rates, or floors.

(9) The investment is not a qualifying asset under the 1940 Act. A BDC may not acquire any asset other than qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. As of December 31, ~~2017,~~2018, approximately ~~13.9%~~12.7% of the Company’s investments were considered non-qualifying.

(10) Investment is classified as a ~~LMM portfolio~~Lower Middle Market investment.

(11) Investment is classified as a Private Loan portfolio investment.

(12) Investment or portion of investment is under contract to purchase and met trade date accounting criteria as of December 31, ~~2017.~~2018. Settlement occurred or is scheduled to occur after December 31, ~~2017.~~2018. See Note 2 —- Basis of Presentation and Summary of Significant Accounting Policies for Summary of Security Transactions.

(13) Investment serviced by Main Street pursuant to servicing arrangements with the Company.

(14) Second lien secured debt investment.

(15) Investment is classified as an Other Portfolio investment.

(16) Income producing through dividends or distributions.

(17) Unsecured debt investment.

(18) Investment is on non-accrual status as of December 31, ~~2017.~~2018.

(19) ~~[Reserved]~~Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.

(20) Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.

(21) Effective yield as of December 31, ~~2017~~2018 was approximately ~~0.01%.~~0.03% at US Bank Money Market Account and 2.10% at Fidelity Institutional Money Market Funds.

(22) The 1, 2, 3 and 6 month LIBOR rates were ~~1.57%~~2.50%, ~~1.62%~~2.61%, ~~1.69%~~2.81% and ~~1.84%~~2.88%, respectively, as of December 31, ~~2017.~~2018. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of December 31, ~~2017,~~2018, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to December 31, ~~2017.~~2018. The prime rate was ~~4.50%~~5.50% as of December 31, ~~2017.~~2018.

(24) As part of the credit agreement with the portfolio company, the Company is entitled to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder. The rate the Company receives per the credit agreement is the same as the rate reflected in the Condensed Consolidated Schedule of Investments above.[Reserved]

(26) The fair value of the investment was determined using significant unobservable inputs. See Note 3 -— Fair Value Hierarchy for Investments.

See notes to the consolidated financial statements.

HMS Income Fund, Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Note 1 –— Principal Business and Organization

HMS Income Fund, Inc. ~~(together~~(collectively with its consolidated subsidiaries, the “Company”) was formed as a Maryland corporation on November 28, 2011 under the General Corporation Law of the State of Maryland. The Company is an externally managed, non-diversified closed-end management investment company that has elected to be treated as a BDC under the 1940 Act. The Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

The Company’s primary investment objective is to generate current income through debt and equity investments. A secondary objective of the Company is to generate long-term capital appreciation through equity and equity-related investments including warrants, convertible securities and other rights to acquire equity securities. The Company’s portfolio strategy is to invest primarily in illiquid debt and equity securities issued by lower middle market (“LMM”) companies, which generally have annual revenues between $10 million and $150 million, and debt securities issued by middle market (“Middle Market”) companies that are generally larger in size than the LMM companies, with annual revenues typically between $10 million and $3 billion. The Company’s LMM and Middle Market portfolio investments generally range in size from $1 million to $15 million. The Company categorizes some of its investments in LMM companies and Middle Market companies as private loan (“Private Loan”) portfolio investments. Private Loan investments, often referred to in the debt markets as “club deals,” are investments, generally in debt instruments, that the Company originates on a collaborative basis with other investment funds. Private Loan investments are typically similar in size, structure, terms and conditions to investments the Company holds in its LMM portfolio and Middle Market portfolio. The Company’s portfolio also includes other portfolio (“Other Portfolio”) investments primarily consisting of ~~the Company’s investment in HMS-ORIX (see Note 4 -~~ ~~Investment in HMS-ORIX SLF LLC) and~~ investments managed by third parties, which differ from the typical profiles for the Company’s other types of investments.

The Company previously registered for sale up to 150,000,000 shares of common stock pursuant to a registration statement on Form N-2 (File No. 333-178548) which was initially declared effective by the Securities and Exchange Commission (the “SEC”) on June 4, 2012 (the “Initial Offering”). The Initial Offering terminated on December 1, 2015. The Company raised approximately $601.2 million under the Initial Offering, including proceeds from the ~~dividend~~distribution reinvestment plan of approximately $22.0 million. The Company also registered for sale up to $1,500,000,000 worth of shares of common stock (the “Offering”) pursuant to a new registration statement on Form N-2 (File No. 333-204659), as ~~amended.~~amended and declared effective by the SEC on May 1, 2017. With the approval of the Company’s board of directors, the Company closed the Offering to new investors effective September 30, 2017. Through ~~September~~June 30, ~~2018,~~2019, the Company raised approximately ~~$204.7~~$224.0 million in the Offering, including proceeds from the distribution reinvestment plan of approximately ~~$73.0~~$92.2 million.

HMS Funding I LLC (“HMS Funding”) and HMS Equity Holding, LLC (“HMS Equity Holding”) are both wholly owned subsidiaries of the Company that were organized as Delaware limited liability companies. HMS Equity Holding II, Inc. (“HMS Equity Holding II”) is a wholly owned subsidiary of the Company that was organized as a Delaware corporation. HMS California Holdings LP (“HMS California Holdings”) is a wholly owned subsidiary of the Company that was organized as a Delaware limited partnership. HMS California Holdings GP LLC (“HMS California Holdings GP”) is a wholly owned subsidiary of the Company that was organized as a Delaware limited liability company. HMS Funding was created for the Deutsche Bank Credit Facility (as defined below in Note ~~5 -~~6 — Borrowings) in order to function as a “Structured Subsidiary,” which is permitted to incur debt outside of the TIAA Credit Facility (as defined below in Note ~~5 -~~6 — Borrowings) since it is not a guarantor under the TIAA Credit Facility. Two of the Company’s wholly owned subsidiaries, HMS Equity Holding and HMS Equity Holding II, ~~which~~ have elected to be taxable entities and primarily hold equity investments in certain portfolio companies which are “pass through” entities for tax purposes.

The business of the Company is managed by HMS Adviser LP (the “Adviser”), a Texas limited partnership and affiliate of Hines Interests Limited Partnership (“Hines”), under an Investment Advisory and Administrative Services Agreement dated May 31, 2012 (as amended, the “Investment Advisory Agreement”). The Company and the Adviser have retained MSC Adviser I, LLC (the “Sub-Adviser”), a wholly owned subsidiary of Main Street Capital Corporation (“Main Street”), a New York Stock Exchange listed BDC, as the Company’s investment sub-adviser, pursuant to an Investment Sub-Advisory Agreement (the “Sub-Advisory Agreement”), to identify, evaluate, negotiate and structure prospective investments, make investment and portfolio management recommendations for approval by the Adviser, monitor the Company’s investment portfolio and provide certain ongoing administrative services to the Adviser. The Adviser and the Sub-Adviser are collectively referred to as the “Advisers,” and each is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. Upon the execution of the Sub-Advisory Agreement, Main Street became an affiliate of the Company. The Company’s board of directors most recently reapproved the Investment Advisory Agreement and Sub-Advisory Agreement on May ~~10, 2018.~~23, 2019. The Company engaged Hines Securities, Inc. (the “Dealer Manager”), an affiliate of the Adviser, to serve as the Dealer Manager for ~~our~~the Company’s offerings, if any.

Note 2 –— Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company’s wholly owned consolidated subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Under ~~the 1940 Act rules, regulations pursuant to Articles 6, 10 and 12 of Regulation S-X and~~ Topic 946, Financial Services - Investment Companies, of the Accounting Standards Codification, as amended (the “ASC”), of the Financial Accounting Standards Board (the “FASB”), the Company is precluded from consolidating portfolio company investments, including those in which the Company has a controlling interest, unless the portfolio company is a wholly-owned investment company. An exception to this general principle occurs if the Company owns a controlled operating company whose purpose is to provide services to the Company such as an investment adviser or transfer agent. None of the Company’s investments qualifies for this exception. Therefore, the Company’s portfolio company investments, including those in which the Company has a controlling interest, are carried on the Condensed Consolidated Balance Sheet at fair value, as discussed below, with changes to fair value recognized as “Net Change in Unrealized Appreciation (Depreciation) on Investments” on the Condensed Consolidated Statements of Operations until the investment is realized, usually upon exit, resulting in any gain or loss on exit being recognized as a realized gain or loss. However, in the event that any controlled subsidiary exceeds the tests of significance set forth in Rules 3-09 or 4-08(g) of Regulation S-X, the Company will include required financial information for such subsidiary in the notes or as an attachment to its condensed consolidated financial statements.

The unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are, in the opinion of management, necessary for the fair presentation of the Company’s results for the interim periods presented. The results of operations for interim periods are not indicative of results to be expected for the full year.

Amounts as of December 31, ~~2017~~2018 included in the unaudited condensed consolidated financial statements have been derived from the Company’s audited consolidated financial statements as of that date. All intercompany accounts and transactions have been eliminated in consolidation. 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. The current period’s results of operations are not necessarily indicative of results that ultimately may be achieved for the year. Therefore, these financial statements should be read in conjunction with the Company’s financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K (as amended) for the year ended December 31, ~~2017,~~2018, which was filed with the SEC on March ~~21, 2018.~~8, 2019.

Reclassifications

Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation with no effect on our previously reported net income, net asset value or cash flows from operations.

Interest, Fee and Dividend Income

Interest and dividend income are recorded on the accrual basis to the extent amounts are expected to be collected. Prepayment penalties received by the Company are recorded as income upon receipt. Dividend income is recorded when dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. Accrued interest and dividend income are evaluated quarterly for collectability. When a debt security becomes 90 days or more past due and the Company does not expect the debtor to be able to service all of its debt or other obligations, it will generally be placed on non-accrual status and the Company will cease recognizing interest income on that debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If there is reasonable doubt that the Company will receive any previously accrued interest, then the interest income will be written off. Additionally, if a debt security has deferred interest payment terms and the Company becomes aware of a deterioration in credit quality, the Company will evaluate the collectability of the deferred interest payment. If it is determined that the deferred interest is unlikely to be collected, the Company will place the security on non-accrual status and cease recognizing interest income on that debt security until the borrower has demonstrated the ability and intent to pay the contractual amounts due. Payments received on non-accrual investments may be recognized as income or applied to principal depending upon the collectability of the remaining principal and interest. If a debt security’s status significantly improves with respect to the debtor’s ability to service the debt or other obligations, or if a debt security is fully impaired, sold or written off, it will be removed from non-accrual status.

Interest income from investments in the “equity” class of security of collateralized loan obligation (“CLO”) funds (typically subordinated notes) is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows in accordance with ASC 325-40, Beneficial Interests in Securitized Financial Assets. The Company monitors the expected cash

inflows from its investment in a CLO, including the expected residual payments, and the effective yield is determined and updated periodically.

As of ~~September~~June 30, ~~2018,~~2019, the Company had ~~five~~seven debt investments in ~~three~~four portfolio companies that were on non-accrual status ~~all of which were~~and more than 90 days past due. The debt investments on non-accrual status comprised approximately 0.9% of the Company’s total investment portfolio at fair value and 1.7% of the total investment portfolio at cost. Each of these portfolio companies experienced a significant decline in credit quality raising doubt regarding the Company’s ability to collect the principal and interest contractually due. Given the credit deterioration of these portfolio companies, the Company ceased accruing interest income on the non-accrual debt investments and wrote off any previously accrued interest deemed uncollectible. As of ~~September~~June 30, ~~2018,~~2019, the Company is not aware of any other material changes to the creditworthiness of the borrowers underlying its debt investments.

As of December 31, ~~2017,~~2018, the Company had ~~four~~six debt investments in ~~three~~four portfolio companies that were more than 90 days past due, ~~all of~~including five debt investments in three portfolio companies which were on non-accrual status. The debt investments on non-accrual status comprised approximately 0.4% of the Company’s total investment portfolio at fair value and 0.6% of the total investment portfolio at cost. Each of these portfolio companies experienced a significant decline in credit quality after the Company acquired its investments, raising doubt regarding the Company’s ability to collect the principal and interest contractually due. Given the credit deterioration, the Company ceased accruing interest income on the non-accrual debt investments and wrote off any previously accrued interest deemed uncollectible.

From time to time, the Company may hold debt instruments in its investment portfolio that contain a payment-in-kind (“PIK”) interest provision. If these borrowers elect to pay or are obligated to pay interest under the optional PIK provision and, if deemed collectible in management’s judgment, then the interest would be computed at the contractual rate specified in the investment’s credit agreement, recorded as interest income and periodically added to the principal balance of the investment. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. The Company stops accruing PIK interest and writes off any accrued and uncollected interest in arrears when it determines that such PIK interest in arrears is no longer collectible.

As of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017,~~2018, the Company held 1831 and 1924 investments, respectively, which contained a PIK provision. As of ~~September~~June 30, ~~2018, three~~2019, five of the 1831 investments with PIK provisions were on non-accrual status. No PIK interest was recorded on these ~~three~~five non-accrual investments during the three and ~~nine~~six months ended ~~September~~June 30, ~~2018.~~2019. As of December 31, ~~2017, three~~2018, four of the 1924 investments with PIK provisions were on non-accrual status. No PIK interest was recorded on these investments during the year ended December 31, ~~2017.~~2018. For the three months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company capitalized ~~$494,000~~approximately $1.2 million and ~~$58,000,~~$271,000, respectively, of PIK interest income. For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company capitalized ~~$977,000~~approximately $2.4 million and ~~$897,000,~~$483,000, respectively, of PIK interest income. The Company stops accruing PIK interest and writes off any accrued and uncollected interest in arrears when it determines that such PIK interest in arrears is no longer collectible.

The Company may periodically provide services, including structuring and advisory services, to its portfolio companies or other third parties. The income from such services is non-recurring. For services that are separately identifiable and evidence exists to substantiate fair value, income is recognized as earned, which is generally when the investment or other applicable transaction closes. For the three months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company recognized ~~$781,000~~approximately $161,000 and ~~$213,000,~~$724,000, respectively, of non-recurring fee income received from its portfolio companies or other third parties, which accounted for approximately ~~2.5%~~0.6% and ~~0.8%~~2.7%, respectively, of the Company’s total investment income during such period. For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company recognized ~~$1.8 million~~approximately $522,000 and ~~$1.9~~$1.1 million, respectively, of non-recurring fee income received from its portfolio companies or other third parties, which accounted for approximately ~~2.2%~~0.9% and ~~2.5%~~2.1%, respectively, of the Company’s total investment income during such period. Fees received in connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are deferred and accreted into interest income over the life of the financing.

Recent Accounting Pronouncements

~~In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014‑09,~~ ~~Revenue from Contracts with Customers (Topic 606). ASU 2014‑09 supersedes the revenue recognition requirements under ASC 605,~~ ~~Revenue Recognition~~, and most industry‑specific guidance throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. In March 2016, the FASB issued ASU 2016-08, ~~Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),~~ ~~which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10,~~ ~~Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,~~ ~~which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU No. 2016‑12,~~ ~~Revenue from Contracts with Customers (Topic 606)-Narrow‑Scope Improvements and Practical Expedients~~, which clarified guidance on assessing collectability, presenting sales tax, measuring non-cash consideration, and certain transition matters. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Substantially all of the Company’s income is not within the scope of ASU 2014-09. For those income items that are within the scope of ASU 2014-09 (primarily fee income), the Company has similar performance obligations as compared with deliverables and separate units of account previously identified. As a result,

~~the Company’s timing of its revenue recognition remains the same and the adoption of the standard did not have a material impact on the Company’s condensed consolidated financial statements.~~

~~In January 2016, the FASB issued ASU 2016-01,Financial Instruments-Overall:~~ ~~Recognition and Measurement of Financial Assets and Financial Liabilities,~~ which amends the guidance related to the classification and measurement of investments in equity securities. The guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The ASU will also amend the guidance related to the presentation of certain fair value changes for financial liabilities measured at fair value and certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The impact of the adoption of this new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues including, among other things, the classification of debt prepayment or debt extinguishment costs. ASU 2016-15 is effective for fiscal years, and the interim periods within those periods, beginning after December 15, 2017. The impact of the adoption of this new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

~~In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230),”~~which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for fiscal years beginning after December 15, 2017 and the interim periods within those years. The amendment should be adopted retrospectively. The impact of the adoption of this new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820),”, which is intended to improve fair value

disclosure requirements by removing disclosures that are not cost-beneficial, clarifying ~~disclosures'~~disclosures’ specific requirements, and adding relevant disclosure requirements. The amendments take effect for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating

the impact the adoption of this standard will have on its consolidated financial statements and related disclosures.

In August 2018, the SEC adopted rules (the "SEC Release") that require disclosure of changes in net assets within a registrant's Form 10-Q filing on a quarter-to-date and year-to-date basis for both the current year and prior year comparative periods. The

Company adopted the new requirement to present changes in net assets in interim financial statements within Form 10-Q filings beginning January 1, 2019. The compliance date for the SEC Release was for all filings, as applicable, on or after November 5, 2018. The adoption of this rule did not have a material impact on the Company’s condensed consolidated financial statements.

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued standards and any that are not yet effective will not have a material impact on its financial statements upon adoption.

Note 3 — Fair Value Hierarchy for Investments

Fair Value Hierarchy

ASC Topic 820, Fair Value Measurement and Disclosures (“ASC 820”), establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:

Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

Level 2—Valuations based on inputs other than quoted prices in active markets, which are either directly or indirectly observable for essentially the full term of the investment. Level 2 inputs include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in non-active markets (for example, thinly traded public companies), pricing models whose inputs are observable for substantially the full term of the investment, and pricing models whose inputs are derived principally from or corroborated by, observable market data through correlation or other means for substantially the full term of the investment.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Such information may be the result of consensus pricing information or broker quotes for which sufficient observable inputs were not available.

As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, gains and losses for such investments categorized within the Level 3 table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). The Company conducts reviews of fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain investments.

As of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017,~~2018, the Company’s investment portfolio was comprised of debt securities, equity investments and Other Portfolio investments. The fair value determination for these investments primarily ~~utilized~~consisted of unobservable (Level 3) inputs.

As of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017,~~2018, all of the Company’s LMM portfolio investments consisted of illiquid securities issued by private companies. The fair value determination for the LMM portfolio investments primarily consisted of unobservable inputs. As a result, all of the Company’s LMM portfolio investments were categorized as Level 3 as of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017.~~2018.

As of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017,~~2018, the Company’s Middle Market portfolio investments consisted primarily of Middle Market investments in secured and unsecured debt investments and independently rated debt investments. The fair value determination for these investments consisted of a combination of (1) observable inputs in non-active markets for which sufficient observable inputs were available to determine the fair value of these investments, (2) observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and (3) unobservable inputs. As a result, all of the Company’s Middle Market portfolio investments were categorized as Level 3 as of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017.~~2018.

As of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017,~~2018, the Company’s Private Loan portfolio investments consisted primarily of debt investments. The fair value determination for Private Loan investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of the Company’s Private Loan portfolio investments were categorized as Level 3 as of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017.~~2018.

As of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017,~~2018, the Company’s Other Portfolio investments consisted of illiquid securities issued by private companies. The Company relies primarily on information provided by managers of private investment funds in valuing these investments and considers whether it is appropriate, in light of all relevant circumstances, to value the Other Portfolio investments at the net asset value (“NAV”) reported by the private investment fund at the time of valuation or to adjust the value to reflect a premium or discount. The fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of the Company’s Other Portfolio equity investments were categorized as Level 3 as of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017.~~2018.

The fair value determination of the Level 3 securities required one or more of the following unobservable inputs:

Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers;

Current and projected financial condition of the portfolio company;

Current and projected ability of the portfolio company to service its debt obligations;

Type and amount of collateral, if any, underlying the investment;

Current financial ratios (e.g., fixed charge coverage ratio, interest coverage ratio, and net debt/earnings before interest, tax, depreciation and amortization (“EBITDA”) ratio) applicable to the investment;

Current liquidity of the investment and related financial ratios (e.g., current ratio and quick ratio);

Pending debt or capital restructuring of the portfolio company;

Projected operating results of the portfolio company;

Current information regarding any offers to purchase the investment;

Current ability of the portfolio company to raise any additional financing as needed;

Changes in the economic environment which may have a material impact on the operating results of the portfolio company;

Internal occurrences that may have an impact (both positive and negative) on the operating performance of the portfolio company;

Qualitative assessment of key management;

Contractual rights, obligations or restrictions associated with the investment;

Third party pricing for securities with limited observability of inputs determining the pricing; and

Other factors deemed relevant.

The following table presents fair value measurements of the Company’s investments, by type of investment, as of ~~September~~June 30, ~~2018~~2019 according to the fair value hierarchy (dollars in thousands):


	Fair Value Measurements								Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
First lien secured debt investments	$	—	$	—	$	870,165	$	870,165	$	—	$	—	$	815,660	$	815,660
Second lien secured debt investments	—		—		101,635		101,635		—		—		74,196		74,196
Unsecured debt investments	—		—		11,467		11,467		—		—		13,222		13,222
Equity investments ⁽¹⁾	—		—		147,055		147,055		—		—		165,170		165,170
Total	$	—	$	—	$	1,130,322	$	1,130,322	$	—	$	—	$	1,068,248	$	1,068,248

(1) Includes the Company’s ~~investment~~investments in ~~HMS-ORIX.~~both HMS-ORIX and CLO subordinated notes. (See Note 4 -— Investment in HMS-ORIX SLF ~~LLC)~~LLC)

The following table presents fair value measurements of the Company’s investments, by type of investment, as of December 31, ~~2017~~2018 according to the fair value hierarchy (dollars in thousands):


	Fair Value Measurements								Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
First lien secured debt investments	$	—	$	—	$	830,460	$	830,460	$	—	$	—	$	846,427	$	846,427
Second lien secured debt investments	—		—		97,940		97,940		—		—		93,573		93,573
Unsecured debt investments	—		—		11,368		11,368		—		—		11,236		11,236
Equity investments ⁽¹⁾	—		—		109,671		109,671		—		—		155,332		155,332
Total	$	—	$	—	$	1,049,439	$	1,049,439	$	—	$	—	$	1,106,568	$	1,106,568

(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 -— Investment in HMS-ORIX SLF LLC)

The following table presents fair value measurements of the Company’s investments, by investment classification, segregated by the level within the fair value hierarchy as of ~~September~~June 30, ~~2018~~2019 (dollars in thousands):


	Fair Value Measurements								Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
LMM portfolio investments	$	—	$	—	$	194,599	$	194,599	$	—	$	—	$	217,824	$	217,824
Private Loan investments	—		—		390,304		390,304		—		—		463,864		463,864
Middle Market investments	—		—		492,712		492,712		—		—		334,269		334,269
Other Portfolio investments ⁽¹⁾	—		—		52,707		52,707		—		—		52,291		52,291
Total	$	—	$	—	$	1,130,322	$	1,130,322	$	—	$	—	$	1,068,248	$	1,068,248

(1) Includes the Company’s ~~investment~~investments in ~~HMS-ORIX.~~both HMS-ORIX and CLO subordinated notes. (See Note 4 -— Investment in HMS-ORIX SLF ~~LLC)~~LLC)


	Fair Value Measurements								Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
LMM portfolio investments	$	—	$	—	$	135,657	$	135,657	$	—	$	—	$	210,274	$	210,274
Private Loan investments	—		—		315,382		315,382		—		—		408,939		408,939
Middle Market investments	—		—		549,792		549,792		—		—		434,271		434,271
Other Portfolio investments ⁽¹⁾	—		—		48,608		48,608		—		—		53,084		53,084
Total	$	—	$	—	$	1,049,439	$	1,049,439	$	—	$	—	$	1,106,568	$	1,106,568

(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 -— Investment in HMS-ORIX SLF LLC)

The significant unobservable inputs used in the fair value measurement of the Company’s LMM, Middle Market and Private Loan debt investments are (i) risk adjusted discount rates used in the yield-to-maturity valuation technique (described in Note 2 -— Basis of Presentation and Summary of Significant Accounting Policies -— Valuation of Portfolio Investments in the Company’s Annual Report on Form 10-K, as amended, for the year ended December 31, ~~2017,~~2018, which was filed with the SEC on March ~~21, 2018)~~8, 2019) and (ii) the percentage of expected principal recovery. Increases (decreases) in any of these discount rates in isolation could result in a significantly lower (higher) fair value measurement. Increases (decreases) in any of these expected principal recovery percentages

in isolation could result in a significantly higher (lower) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s LMM equity securities and Private Loan equity securities, which are generally valued through an average of the discounted cash flow technique and the market comparable/enterprise value technique (unless one of these approaches is not applicable), are (i) EBITDA multiples and (ii) the weighted average cost of capital (“WACC”). Increases (decreases) in EBITDA multiple inputs in isolation could result in a significantly higher (lower) fair value measurement. Conversely, increases (decreases) in WACC inputs in isolation could result in a significantly lower (higher) fair value measurement. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third-party appraisals of collateral and fair values as determined by independent third parties, which are not presented in the table below.

The following table, which is not intended to be all inclusive, presents the significant unobservable inputs of the Company’s Level 3 investments as of ~~September~~June 30, 2019 (dollars in thousands):



	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range	Weighted Average ⁽²⁾
LMM equity investments	$	87,813	Discounted Cash Flows	WACC	11.6% - 18.1%	13.7%
			Market Approach/Enterprise Value	EBITDA Multiples ⁽¹⁾	4.5x - 12.0x	6.8x
LMM debt investments	130,011		Discounted Cash Flows	Expected Principal Recovery	87.5% - 100.0%	99.6%
				Risk Adjusted Discount Factor	8.0% - 21.5%	12.5%
Private Loan debt investments	355,193		Discounted Cash Flows	Expected Principal Recovery	1.4% - 100.0%	100.0%
				Risk Adjusted Discount Factor	5.6% - 20.4%	8.7%
	87,645		Market Approach	Third Party Quotes	94.4% - 101.0%	99.3%
Private Loan equity investments	21,026		Market Approach/Enterprise Value	EBITDA Multiples ⁽¹⁾	4.9x - 9.5x	7.5x
			Discounted Cash Flows	WACC	11.0% - 15.0%	12.4%
Middle Market debt investments	5,596		Discounted Cash Flows	Expected Principal Recovery	100.0% - 100.0%	100.0%
				Risk Adjusted Discount Factor	11.9% - 35.0%	18.8%
	324,633		Market Approach	Third Party Quotes	25.0% - 101.5%	93.2%
Middle Market equity investments	4,040		Market Approach	Third Party Quotes	$0.0 - $250.0	$103.1
			Discounted Cash Flows	WACC	17.4% - 18.0%	17.4%
			Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	3.9x - 5.5x	5.5x
Other Portfolio investments ⁽³⁾	52,291		Market Approach	NAV ⁽¹⁾	86.9% - 132.9%	101.9%
	$	1,068,248

(1) May include pro forma adjustments and/or other add-backs based on specific circumstances related to each investment.

(2) Weighted average excludes investments for which the significant unobservable input was not utilized in the fair value determination.

(3) Includes the Company’s investments in both HMS-ORIX and CLO subordinated notes. (See Note 4 — Investment in HMS-ORIX SLF LLC)

The following table, which is not intended to be all inclusive, presents the significant unobservable inputs of the Company’s Level 3 investments as of December 31, 2018 (dollars in thousands):


	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range	Weighted Average ⁽²⁾	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range	Weighted Average ⁽²⁾
LMM equity investments	$	71,113	Discounted Cash Flows	WACC	12.2% - 17.6%	13.9%	$	79,641	Discounted Cash Flows	WACC	11.8% - 17.5%	13.7%
			Market Approach/Enterprise Value	EBITDA Multiples ⁽¹⁾	4.0x - 8.5x	6.6x			Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	4.3x - 8.5x	6.6x
LMM debt investments	123,486		Discounted Cash Flows	Expected Principal Recovery	97.0% - 100.0%	99.9%	130,633		Discounted Cash Flows	Expected Principal Recovery	97.0% - 100.0%	99.9%
				Risk Adjusted Discount Factor	10.0% - 23.0%	13.5%				Risk Adjusted Discount Factor	9.6% - 20.0%	12.5%
Private Loan debt investments	274,568		Discounted Cash Flows	Expected Principal Recovery	2.9% - 100.0%	99.8%	285,733		Discounted Cash Flows	Expected Principal Recovery	1.5% - 100.0%	99.8%
				Risk Adjusted Discount Factor	4.9% - 28.7%	8.4%				Risk Adjusted Discount Factor	5.8% - 30.3%	10.2%
	103,008		Market Approach	Third Party Quotes	98.2% - 102.0%	98.5%	106,301		Market Approach	Third Party Quotes	90.9% - 101.0%	98.6%
Private Loan equity investments	12,728		Market Approach/Enterprise Value	EBITDA Multiples ⁽¹⁾	6.2x - 9.5x	7.5x	16,905		Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	4.9x - 9.5x	6.9x
			Discounted Cash Flows	WACC	11.4% - 13.8%	12.2%			Discounted Cash Flows	WACC	11.4% - 14.2%	12.7%
Middle Market debt investments	482,205		Market Approach	Third Party Quotes	36.0% - 106.3%	97.2%	428,569		Market Approach	Third Party Quotes	56.2% - 100.9%	95.3%
Middle Market equity investments	10,507		Market Approach	Third Party Quotes	$1.1 - $275.0	$87.0	5,702		Market Approach	Third Party Quotes	$0.68 - $250.0	$98.1
			Discounted Cash Flows	WACC	15.3% - 16.1%	15.7%			Discounted Cash Flows	WACC	16.1% - 18.0%	16.1%
			Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	3.9x - 5.5x	4.7x			Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	3.9x - 5.5x	5.5x
Other Portfolio investments⁽³⁾	52,707		Market Approach	NAV ⁽¹⁾	87.9% - 108.9%	99.5%	53,084		Market Approach	NAV ⁽¹⁾	85.5% - 119.3%	95.3%
	$	1,130,322					$	1,106,568

(1) May include pro forma adjustments and/or other add-backs based on specific circumstances related to each investment.

(2) Weighted average excludes investments for which the significant unobservable input was not utilized in the fair value determination.

(3) Includes the Company’s investment in HMS-ORIX. (See Note 4 -— Investment in HMS-ORIX SLF LLC)

~~The following table, which is not intended to be all inclusive, presents the significant unobservable inputs of the Company’s Level 3 investments as of December 31, 2017 (dollars in thousands):~~

Fair Value
Valuation
Technique
Significant Unobservable Inputs Range
Weighted
Average ⁽²⁾
LMM equity investments $ 47,876
Discounted Cash Flows WACC 12.6% - 17.4% 13.9%
Market Approach/Enterprise Value
EBITDA Multiples⁽¹⁾
4.0x - 10.0x 7.1x
LMM debt investments 87,781
Discounted Cash Flows Expected Principal Recovery 28.0% - 100.0% 98.9%

Risk Adjusted Discount Factor 10.6% - 20.5% 12.3%
Private Loan debt investments 228,789
Discounted Cash Flows Expected Principal Recovery 2.9% - 100.0% 99.7%
Risk Adjusted Discount Factor 4.5% - 28.3% 7.9%
77,981
Market Approach Third Party Quotes 92.0% - 102.0% 98.8%
Private Loan equity investments 8,612
Market Approach/Enterprise Value
EBITDA Multiples⁽¹⁾
5.0x - 9.5x 8.0x
Discounted Cash Flows WACC 9.9% - 14.0% 11.8%
Middle Market debt investments 545,217
Market Approach Third Party Quotes 29.0% - 106.0% 96.1%
Middle Market equity investments 4,575
Market Approach Third Party Quotes $1.6 - $345.0 $322.2
Discounted Cash Flows WACC 15.3% - 15.3% 15.3%
Market Approach/Enterprise Value
EBITDA Multiples⁽¹⁾
5.5x - 5.5x 5.5x
Other Portfolio investments⁽³⁾
48,608
Market Approach
NAV ⁽¹⁾
86.1% - 102.1% 100.3%
$ 1,049,439

~~(1) May include pro forma adjustments and/or other add-backs based on specific circumstances related to each investment.~~

~~(2) Weighted average excludes investments for which the significant unobservable input was not utilized in the fair value determination.~~

~~(3) Includes the Company’s investment in HMS-ORIX. (See Note 4 -~~ ~~Investment in HMS-ORIX SLF LLC)~~

The following table provides a summary of changes in fair value of the Company’s Level 3 portfolio investments for the ~~nine~~six months ended ~~September~~June 30, 2019 (dollars in thousands):



Type of Investment	December 31, 2018 Fair Value		PIK Interest Accrual		New Investments⁽¹⁾		Sales/ Repayments			Net Change in Unrealized Appreciation (Depreciation) ⁽²⁾			Net Realized Gain (Loss)			June 30, 2019 Fair Value
LMM Equity	$	79,641	$	174	$	3,748	$	(1,198	)	$	5,300		$	148		$	87,813
LMM Debt	130,633		192		11,798		(12,141		)	(481		)	10			130,011
Private Loan Equity	16,905		19		1,849		(2,101		)	3,328			1,026			21,026
Private Loan Debt	392,034		1,728		85,495		(44,227		)	10,067			(2,259		)	442,838
Middle Market Debt	428,569		252		16,657		(99,085		)	(10,901		)	(5,263		)	330,229
Middle Market Equity	5,702		—		—		—			(1,662		)	—			4,040
Other Portfolio ⁽³⁾	53,084		—		28,791		(32,650		)	3,664			(598		)	52,291
Total	$	1,106,568	$	2,365	$	148,338	$	(191,402	)	$	9,315		$	(6,936	)	$	1,068,248

(1) Column includes changes to investments due to the net accretion of discounts/premiums and amortization of fees.

(2) Column does not include unrealized appreciation (depreciation) on unfunded commitments.

(3)Includes the Company’s investments in both HMS-ORIX and CLO subordinated notes. (See Note 4 — Investment in HMS-ORIX SLF LLC)

The following table provides a summary of changes in fair value of the Company’s Level 3 portfolio investments for the six months ended June 30, 2018 (dollars in thousands):


Type of Investment	January 1, 2018 Fair Value		PIK Interest Accrual		New Investments⁽¹⁾		Sales/ Repayments			Net Change in Unrealized Appreciation (Depreciation) ⁽²⁾			Net Realized Gain (Loss)			September 30, 2018 Fair Value		December 31, 2017 Fair Value		PIK Interest Accrual		New Investments⁽¹⁾		Sales/ Repayments			Net Change in Unrealized Appreciation (Depreciation) ⁽²⁾			Net Realized Gain (Loss)			June 30, 2018 Fair Value
LMM Equity	$	47,876	$	—	$	14,630	$	(3,106	)	$	10,029		$	1,684		$	71,113	$	47,876	$	—	$	10,528	$	(1,780	)	$	3,400		$	912		$	60,936
LMM Debt	87,781		18		45,121		(8,936		)	642			(1,140		)	123,486		87,781		18		27,080		(4,754		)	675			(1,060		)	109,740
Private Loan Equity	8,612		—		4,748		(450		)	(534		)	352			12,728		8,612		—		3,200		(449		)	(1,339		)	350			10,374
Private Loan Debt	306,770		411		216,372		(146,276		)	17			282			377,576		306,770		208		129,226		(60,933		)	137			69			375,477
Middle Market Debt	545,217		548		184,110		(241,254		)	14,527			(20,943		)	482,205		545,217		257		130,754		(185,521		)	8,021			(8,052		)	490,676
Middle Market Equity	4,575		—		6,633		—			(701		)	—			10,507		4,575		—		2,472		—			(876		)	—			6,171
Other Portfolio⁽³⁾	48,608		—		3,912		—			187			—			52,707		48,608		—		2,385		—			(604		)	—			50,389
Total	$	1,049,439	$	977	$	475,526	$	(400,022	)	$	24,167		$	(19,765	)	$	1,130,322	$	1,049,439	$	483	$	305,645	$	(253,437	)	$	9,414		$	(7,781	)	$	1,103,763

(1) Column includes changes to investments due to the net accretion of discounts/premiums and amortization of fees.

(2) Column does not include unrealized appreciation (depreciation) on unfunded commitments.

(3) Includes the Company’s investment in HMS-ORIX. (See Note 4 - ~~Investment in HMS-ORIX SLF LLC)~~

~~The following table provides a summary of changes in fair value of the Company’s Level 3 portfolio investments for the nine months ended September 30, 2017 (dollars in thousands):~~

Type of Investment January 1, 2017 Fair Value
PIK
Interest
Accrual

New Investments⁽¹⁾
Sales/ Repayments
Net Change in Unrealized
Appreciation
(Depreciation) ⁽²⁾
Net Realized Gain (Loss) September 30, 2017 Fair Value
LMM Equity $ 37,616
$ 154
$ 8,276
$ (622 ) $ 1,170
$ (445 ) $ 46,149
LMM Debt 78,444
102
25,191
(9,057 ) (1,886 ) —
92,794
Private Loan Equity 6,323
—
3,855
(2,917 ) (1,528 ) 2,548
8,281
Private Loan Debt 205,034
181
169,214
(68,482 ) (494 ) —
305,453
Middle Market Debt 638,374
377
236,193
(284,372 ) (3,180 ) 306
587,698
Middle Market Equity 5,090
83
33
—
(1,221 ) —
3,985
Other Portfolio⁽³⁾
18,366
—
37,677
(10,756 ) 109
950
46,346
Total $ 989,247
$ 897
$ 480,439
$ (376,206 ) $ (7,030 ) $ 3,359
$ 1,090,706

~~(1) Column includes changes to investments due to the net accretion of discounts/premiums and amortization of fees.~~

~~(2) Column does not include unrealized appreciation (depreciation) on unfunded commitments.~~

~~(3) Includes the Company’s investment in HMS-ORIX. (See Note 4 -~~— Investment in HMS-ORIX SLF LLC)

The total net change in unrealized appreciation (depreciation) for the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017~~2018 included in the Condensed Consolidated ~~Statement~~Statements of Operations that related to Level 3 assets still held as of ~~September~~June 30, ~~2018~~2019 and ~~2017~~2018 was approximately ~~$12.6~~$10.4 million and ~~$(652,000),~~$(3.5) million, respectively. For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, there were no transfers between Level 2 and Level 3 portfolio investments.

Portfolio Investment Composition

The composition of the Company’s investments as of ~~September~~June 30, 2019, at cost and fair value, was as follows (dollars in thousands):



	Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio
First lien secured debt investments	$	842,895	78.5	%	$	815,660	76.4	%
Second lien secured debt investments	80,258		7.5		74,196		7.0
Unsecured debt investments	13,535		1.3		13,222		1.2
Equity investments ⁽¹⁾	135,657		12.6		163,909		15.3
Equity warrants	1,591		0.1		1,261		0.1
Total	$	1,073,936	100.0	%	$	1,068,248	100.0	%

(1)Includes the Company’s investments in both HMS-ORIX and CLO subordinated notes. (See Note 4 — Investment in HMS-ORIX SLF LLC)

The composition of the Company’s investments as of December 31, 2018, at cost and fair value, was as follows (dollars in thousands):


	Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio		Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio
First lien secured debt investments	$	880,247	78.5	%	$	870,165	77.0	%	$	873,331	77.8	%	$	846,427	76.5	%
Second lien secured debt investments	101,736		9.1		101,635		9.0		98,281		8.8		93,573		8.4
Unsecured debt investments	11,799		1.0		11,467		1.0		12,038		1.1		11,236		1.0
Equity investments⁽¹⁾	125,274		11.2		145,038		12.8		136,051		12.1		153,313		13.9
Equity warrants	1,987		0.2		2,017		0.2		1,987		0.2		2,019		0.2
Total	$	1,121,043	100.0	%	$	1,130,322	100.0	%	$	1,121,688	100.0	%	$	1,106,568	100.0	%

(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 - ~~Investment in HMS-ORIX SLF LLC)~~

~~The composition of the Company’s investments as of December 31, 2017, at cost and fair value, was as follows (dollars in thousands):~~

Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value
Fair Value
Percentage of
Total Portfolio
First lien secured debt investments $ 856,582
80.5 % $ 830,460
79.1 %
Second lien secured debt investments 97,691
9.2
97,940
9.3
Unsecured debt investments 11,194
1.0
11,368
1.1
Equity investments ⁽¹⁾
96,850
9.1
107,597
10.3
Equity warrants 2,012
0.2
2,074
0.2
Total $ 1,064,329
100.0 % $ 1,049,439
100.0 %

~~(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 -~~— Investment in HMS-ORIX SLF LLC)

The composition of the Company’s investments by geographic region as of ~~September~~June 30, 2019, at cost and fair value, was as follows (dollars in thousands) (since the Other Portfolio investments do not represent a single geographic region, this information excludes Other Portfolio investments):



	Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Northeast	$	163,682	16.0	%	$	157,763	15.5	%
Southeast	192,691		18.9		204,308		20.1
West	205,937		20.2		199,460		19.6
Southwest	186,422		18.2		181,043		17.9
Midwest	237,356		23.2		238,135		23.4
Non-United States	35,647		3.5		35,248		3.5
Total	$	1,021,735	100.0	%	$	1,015,957	100.0	%

The composition of the Company’s investments by geographic region as of December 31, 2018, at cost and fair value, was as follows (dollars in thousands) (since the Other Portfolio investments do not represent a single geographic region, this information excludes Other Portfolio investments):


	Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio		Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Northeast	$	154,631	14.5	%	$	153,565	14.3	%	$	153,513	14.4	%	$	146,819	13.9	%
Southeast	183,534		17.1		194,827		18.1		171,384		16.1		181,182		17.2
West	230,295		21.6		228,705		21.2		230,843		21.7		221,012		21.0
Southwest	246,982		23.1		245,042		22.7		242,402		22.8		238,221		22.6
Midwest	218,152		20.4		220,913		20.5		233,392		21.9		233,067		22.1
Non-United States	34,888		3.3		34,563		3.2		33,497		3.1		33,183		3.2
Total	$	1,068,482	100.0	%	$	1,077,615	100.0	%	$	1,065,031	100.0	%	$	1,053,484	100.0	%

The composition of the Company’s investments by geographic region as of December 31, 2017, at cost and fair value, was as follows (dollars in thousands) (since the Other Portfolio investments do not represent a single geographic region, this information excludes Other Portfolio investments):

Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value
Fair Value
Percentage of
Total Portfolio
Northeast $ 155,908

15.4 %
$ 154,098

15.4 %
Southeast 180,946

17.8

188,290

18.8
West 190,615

18.8

177,422

17.7
Southwest 193,219

19.0

190,926

19.1
Midwest 250,005

24.6

244,331

24.4
Non-United States 44,987

4.4

45,764

4.6
Total $ 1,015,680

100.0 %
$ 1,000,831

100.0 %

The composition of the Company’s total investments by industry as of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017,~~2018, at cost and fair value, was as follows (since the Other Portfolio investments do not represent a single industry, this information excludes Other Portfolio investments):


	Cost				Fair Value				Cost				Fair Value
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Media									6.6	%	5.5	%	6.8	%	5.5	%
Commercial Services and Supplies	7.4	%	7.9	%	7.2	%	7.7	%	6.5		6.7		6.1		6.3
Oil, Gas, and Consumable Fuels									6.1		4.7		6.2		4.7
IT Services	7.1		4.6		7.1		4.6		5.3		5.8		5.4		5.9
Communications Equipment									5.2		4.1		4.5		3.8
Machinery									5.0		4.0		6.7		5.3
Aerospace and Defense									4.9		4.7		5.0		4.6
Diversified Telecommunication Services									4.4		4.6		4.2		4.4
Construction and Engineering	6.1		5.4		6.3		5.5		3.8		4.9		4.1		5.1
Aerospace and Defense	5.4		4.8		5.4		4.9
Media	5.4		4.0		5.2		3.9
Oil, Gas, and Consumable Fuels	4.6		2.4		4.6		2.5
Specialty Retail									3.8		3.1		3.0		2.5
Internet Software and Services	4.6		3.3		4.5		3.3		3.7		4.9		3.7		5.0
Hotels, Restaurants, and Leisure	4.5		6.2		4.5		6.3
Diversified Telecommunication Services	4.5		5.3		4.3		5.3
Communications Equipment	4.1		4.3		4.1		4.5
Energy Equipment and Services	3.7		3.5		3.5		3.2
Health Care Providers and Services	3.5		1.5		3.5		1.6		3.6		2.8		3.5		2.8
Leisure Equipment and Products	3.5		3.0		3.5		3.1		3.0		3.4		2.9		3.4
Computers and Peripherals									2.7		2.6		3.5		3.4
Hotels, Restaurants, and Leisure									2.7		3.4		2.7		3.4
Energy Equipment and Services									2.6		3.4		2.5		3.5
Construction Materials									2.4		2.3		2.7		2.4
Distributors	3.2		3.1		3.1		3.2		2.3		3.2		2.3		3.1
Machinery	3.0		3.5		3.9		4.0
Diversified Consumer Services									2.3		2.3		1.7		1.8
Road & Rail									1.8		1.7		2.0		1.7
Food & Staples Retailing									1.7		1.6		1.6		1.6
Internet and Catalog Retail									1.7		1.7		1.5		1.3
Software									1.7		1.7		2.0		1.9
Food Products	2.9		2.6		2.8		2.6		1.6		2.9		1.5		2.9
Computers and Peripherals	2.6		2.3		3.2		2.6
Diversified Consumer Services	2.3		3.6		2.1		3.7
Construction Materials	1.8		1.5		1.9		1.6
Internet and Catalog Retail	1.7		1.9		1.4		1.6
Professional Services	1.6		3.5		1.6		3.6		1.6		1.6		1.5		1.6
Specialty Retail	1.5		2.9		1.3		2.0
Trading Companies and Distributors	1.5		1.2		1.5		1.3		1.6		1.5		1.6		1.4
Wireless Telecommunication Services	1.4		—		1.4		—		1.4		1.4		1.4		1.3
Containers and Packaging	1.3		—		1.3		—		1.3		1.3		1.3		1.3
Household Durables	1.3		1.6		1.2		1.6		1.3		1.3		1.3		1.3
Food & Staples Retailing	1.1		1.0		1.1		1.0
Textiles, Apparel & Luxury Goods	1.1		0.4		1.0		0.3		1.2		1.1		1.1		1.0
Health Care Equipment and Supplies	1.0		2.0		1.0		2.1
Transportation Infrastructure	1.0		—		1.1		—		1.0		1.0		1.0		1.0
Capital Markets	0.7		1.1		0.7		1.1
Personal Products	—		1.0		—		1.0
Auto Components	—		2.7		—		2.4
Diversified Financial Services	—		1.3		—		1.2
Other ⁽¹⁾	4.6		6.6		4.7		6.7		5.2		4.8		4.7		4.8
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

(1) Includes various industries with each industry individually less than 1.0% of the total combined LMM, Middle Market and Private Loan portfolio investments.

Note 4 — Investment in HMS-ORIX SLF LLC

On April 4, 2017, the Company and ORIX Funds Corp. (“Orix”), entered into a limited liability company agreement to co-manage HMS-ORIX SLF LLC (“HMS-ORIX”), which ~~invests~~invested primarily in broadly-syndicated loans. Pursuant to the terms of the limited liability agreement and through representation on the HMS-ORIX Board of Managers, the Company and Orix each have 50% voting control of HMS-ORIX and together are required to agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. The Company does not ~~operationally~~have sole control of significant actions of HMS-ORIX and, accordingly, does not consolidate the operations of HMS-ORIX within the consolidated financial statements. The Company and Orix ~~have committed to provide, and have~~ funded an aggregate of $50.0 million of equity to HMS-ORIX, with the Company providing $30.0 million (60% of the equity) and Orix providing $20.0 million (40% of the equity).

On May 8, 2019, HMS-ORIX Holdings I LLC, a wholly owned subsidiary of HMS-ORIX, which held all of the investments in broadly-syndicated loans held by HMS-ORIX, was merged (the “HMS-ORIX Holdings Merger”) into Mariner CLO 7, Ltd., an exempted company incorporated under the laws of the Cayman Islands (“Mariner CLO”). In connection with the HMS-ORIX Holdings Merger, HMS-ORIX made certain distributions to its members. The Company used the cash proceeds it received from the HMS-ORIX Holdings Merger to purchase an aggregate principal amount of approximately $25.9 million of the “Subordinated Notes” due in 2032 issued by Mariner CLO in connection with an offering of $405.9 million aggregate principal amount of notes

(the “CLO Offering”). As of ~~September~~June 30, ~~2018 and December 31, 2017,~~2019, HMS-ORIX had total assets of ~~$151.5~~$0.3 million, consisting entirely of residual cash, which will be distributed to the Company and ~~$142.9~~Orix upon final liquidation of HMS-ORIX. As of December 31, 2018, HMS-ORIX had total assets of $162.5 million ~~respectively,~~ and HMS-ORIX’s portfolio consisted of ~~85 and 74~~107 broadly-syndicated loans, ~~respectively,~~ all of which were secured by ~~first-~~

~~priority~~first-priority liens, generally in industries similar to those in which the Company may directly invest. As of ~~both September 30, 2018 and~~ December 31, ~~2017,~~2018, there were no loans in HMS-ORIX’s portfolio that were on non-accrual status.

On ~~April 5, 2017,~~November 20, 2018, HMS-ORIX closed on a $170.0 million credit facility with Citibank, N.A. (the “Refinanced HMS-ORIX Credit Facility”). The proceeds from the Refinanced HMS-ORIX Credit Facility were used to pay off the outstanding balance on the $100.0 million credit facility with Bank of America, N.A., which was subsequently terminated. The ~~facility has a~~reinvestment period for the Refinanced HMS-ORIX Credit Facility was scheduled to expire on September 6, 2019, and the maturity date was nine months after expiration of ~~April 5, 2020.~~the reinvestment period (unless terminated earlier pursuant to the terms of the Refinanced HMS-ORIX Credit Facility). Borrowings under the ~~facility bear~~Refinanced HMS-ORIX Credit Facility bore interest at a rate equal to the three-month LIBOR plus ~~1.65% per annum.~~1.15%. As of ~~September 30, 2018 and~~ December 31, ~~2017, $93.3~~2018, $98.8 million ~~and $86.5 million, respectively, was~~of advances were outstanding under ~~this facility.~~the Refinanced HMS-ORIX Credit Facility. Borrowings under the facility ~~are~~were secured by substantially all of the assets of HMS-ORIX. Proceeds from the HMS-ORIX Holdings Merger were used to pay off the Refinanced HMS-ORIX Credit Facility.

The following table presents a summary of HMS-ORIX’s portfolio as of ~~September 30, 2018 and~~ December 31, ~~2017~~2018 (dollars in thousands):


	As of September 30, 2018			As of December 31, 2017			As of December 31, 2018

Total debt investments ⁽¹⁾	$	143,895		$	138,908		$	165,025
Weighted average effective yield on loans⁽²⁾	5.49		%	4.95		%	5.82		%
Largest loan to a single borrower⁽¹⁾	$	3,470		$	3,496		$	3,461
Total of 10 largest loans to borrowers⁽¹⁾	$	30,960		$	30,790		$	30,430

(1) At principal amount.

(2) Weighted average effective yield is calculated based on the investments at the end of each period and includes accretion of original issue discounts and amortization of premiums, and the amortization of fees received in connection with transactions. Investments, if any, on non-accrual status are assumed to have a zero yield in the calculation of weighted average effective yield.

The following table presents a listing of HMS-ORIX’s individual loan investments as of ~~September 30,~~December 31, 2018:

																	HMS-ORIX	Loan Portfolio
As of September 30, 2018
As of December 31, 2018									As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value		Industry	Type of Investment	Principal		Cost		Fair Value

Acrisure, LLC	Insurance	LIBOR (2 months) + 4.25%, Current Coupon 6.59%, Secured Debt (Maturity - November 22, 2023)	$	2,099	$	2,104	$	2,110	Insurance	LIBOR (2 months) + 4.25%, Current Coupon 6.77%, Secured Debt (Maturity - November 22, 2023)	$	2,492	$	2,487	$	2,422
Advantage Sales & Marketing Inc.	Commercial Services & Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - July 23, 2021)	1,975		1,934		1,824		Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - July 23, 2021)	1,970		1,913		1,752
Air Medical Group Holdings, Inc.	Health Care Providers & Services	LIBOR (1 month) + 3.25%, Current Coupon 5.38%, Secured Debt (Maturity - April 28, 2022)	1,975		1,966		1,947		Health Care Providers and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - April 28, 2022)	1,970		1,960		1,847
AlixPartners, LLP	Asset Management	LIBOR (3 months) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - April 4, 2024)	995		995		1,001		Professional Services	LIBOR (3 months) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - April 4, 2024)	992		992		956
American Seafoods Group LLC	Food Products	LIBOR (1 month) + 2.75%, Current Coupon 5.00%, Secured Debt (Maturity - August 21, 2023)	1,456		1,450		1,451		Food Products	LIBOR (1 month) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - August 21, 2023)	1,435		1,428		1,382
Ancestry.com Operations Inc.	Internet Software & Services	LIBOR (1 month) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - October 19, 2023)	1,300		1,311		1,307		Internet Software and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - October 19, 2023)	1,293		1,306		1,240
Arch Coal, Inc.	Metals & Mining	LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - March 7, 2024)	1,970		1,976		1,974		Metals and Mining	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - March 7, 2024)	1,965		1,972		1,916
Asurion, LLC	Insurance	LIBOR (1 month) + 3.00%, Current Coupon 5.08%, Secured Debt (Maturity - November 3, 2023)	1,264		1,264		1,275
		LIBOR (1 month) + 3.00%, Current Coupon 5.08%, Secured Debt (Maturity - November 4, 2024)	324		323		327
		LIBOR (1 month) + 3.00%, Current Coupon 4.97%, Secured Debt (Maturity - December 22, 2023)	2,955		2,971		2,973
			4,543		4,558		4,575

HMS-ORIX
Loan Portfolio
As of September 30, 2018
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

BCP Renaissance Parent L.L.C. Oil, Gas & Consumable Fuels LIBOR (3 months) + 3.50%, Current Coupon 5.84%, Secured Debt (Maturity - October 31, 2024) $ 600
$ 601
$ 605
BMC Software Finance, Inc. Software LIBOR (3 months) + 4.25%, Current Coupon 6.55%, Secured Debt (Maturity - September 1, 2025) 2,800
2,772
2,831
LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - September 12, 2022) 3,132
3,153
3,167
5,932
5,925
5,998
Builders FirstSource, Inc. Building Products LIBOR (1 month) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - February 29, 2024) 2,955
2,952
2,964
Calpine Corporation Independent Power and Renewable Electricity Producers LIBOR (3 months) + 2.50%, Current Coupon 4.89%, Secured Debt (Maturity - January 15, 2023) 1,975
1,981
1,977
CDS U.S. Intermediate Holdings, Inc. Recreation Facilities & Services LIBOR (1 month) + 3.75%, Current Coupon 6.14%, Secured Debt (Maturity - July 8, 2022) 975
977
961
CHS/Community Health Systems, Inc. Healthcare Providers & Services LIBOR (3 months) + 3.25%, Current Coupon 5.56%, Secured Debt (Maturity - January 27, 2021) 1,460
1,457
1,444
ClubCorp Holdings, Inc. Real Estate Management & Development LIBOR (3 months) + 2.75%, Current Coupon 5.14%, Secured Debt (Maturity - September 18, 2024) 1,959
1,950
1,953
CPI International, Inc. Aerospace & Defense LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - July 26, 2024) 1,980
1,980
1,987
Cyxtera DC Holdings, Inc. Communications LIBOR (3 months) + 3.00%, Current Coupon 5.11%, Secured Debt (Maturity - May 1, 2024) 2,963
2,972
2,971
Deerfield Holdings Corporation Diversified Financial Services LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - February 13, 2025) 2,985
2,981
2,991
Diamond Resorts International, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 3.75%, Current Coupon 5.99%, Secured Debt (Maturity - September 1, 2023) 2,136
2,163
2,089
EFS Cogen Holdings I LLC Utilities LIBOR (3 months) + 3.25%, Current Coupon 5.64%, Secured Debt (Maturity - June 28, 2023) 1,835
1,845
1,831
Encapsys LLC Chemicals LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - November 7, 2024) 995
996
1,002
Endo Luxembourg Finance Company I S.a.r.l. Pharmaceuticals LIBOR (1 month) + 4.25%, Current Coupon 6.50%, Secured Debt (Maturity - April 29, 2024) 1,975
1,991
1,991
Envision Healthcare Corporation Healthcare Providers & Services LIBOR (1 month) + 3.00%, Current Coupon 5.25%, Secured Debt (Maturity - December 1, 2023) 1,415
1,415
1,410
Everi Payments Inc. Leisure Products LIBOR (3 months) + 3.00%, Current Coupon 5.24%, Secured Debt (Maturity - May 9, 2024) 1,975
1,969
1,989
Exgen Renewables IV, LLC Electrical Production LIBOR (3 months) + 3.00%, Current Coupon 5.32%, Secured Debt (Maturity - November 29, 2024) 294
294
297
Financial & Risk Diversified Financial Services LIBOR (1 month) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - October 1, 2025) 1,425
1,424
1,424
First American Payment Systems, L.P. Diversified Financial Services LIBOR (1 month) + 4.75%, Current Coupon 6.87%, Secured Debt (Maturity - January 5, 2024) 904
913
911



HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Asurion, LLC	Insurance	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 3, 2023)	$	1,261	$	1,261	$	1,212
		LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 4, 2024)	323		322		310
			1,584		1,583		1,522
Atkore International, Inc.	Electric Equipment, Instruments and Components	LIBOR (1 month) + 3.00%, Current Coupon 4.97%, Secured Debt (Maturity - December 22, 2023)	2,948		2,967		2,864
Barracuda Networks	Internet Software and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - February 12, 2025)	1,000		974		956
Bass Pro Group, LLC	Specialty Retail	LIBOR (3 months) + 4.25%, Current Coupon 6.55%, Secured Debt (Maturity - September 25, 2024)	1,975		1,929		1,898
Bausch Health Companies Inc.	Health Care Equipment and Supplies	LIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - June 2, 2025)	1,402		1,408		1,342
BCP Renaissance Parent L.L.C.	Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 31, 2024)	597		599		583
Boxer Parent Company, Inc.	Software	LIBOR (3 months) + 4.25%, Current Coupon 7.05%, Secured Debt (Maturity - October 2, 2025)	2,800		2,772		2,708
Boyd Gaming Corporation	Hotels, Restaurants and Leisure	LIBOR (1 week) + 2.25%, Current Coupon 4.66%, Secured Debt (Maturity - September 15, 2023)	1,250		1,208		1,208
Builders FirstSource, Inc.	Building Products	LIBOR (1 month) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - February 29, 2024)	2,947		2,943		2,774
Caesars Resort Collection, LLC	Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - December 23, 2024)	1,247		1,210		1,201
Calpine Corporation	Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 2.50%, Current Coupon 5.31%, Secured Debt (Maturity - January 15, 2023)	1,970		1,977		1,881
CareerBuilder	Internet Software and Services	LIBOR (3 months) + 6.75%, Current Coupon 9.14%, Secured Debt (Maturity - July 31, 2023)	1,500		1,500		1,493
CDS U.S. Intermediate Holdings, Inc.	Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - July 8, 2022)	973		974		914
CenturyLink, Inc.	Diversified Telecommunication Services	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - January 31, 2025)	997		943		934
Citgo Petroleum Corporation	Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 5.90%, Secured Debt (Maturity - July 29, 2021)	695		689		682
ClubCorp Holdings, Inc.	Real Estate Management and Development	LIBOR (3 months) + 2.75%, Current Coupon 5.55%, Secured Debt (Maturity - September 18, 2024)	1,959		1,949		1,852
CPI International, Inc.	Aerospace and Defense	LIBOR (1 month) + 3.50%, Current Coupon 6.01%, Secured Debt (Maturity - July 26, 2024)	1,975		1,975		1,919
Creative Artists Agency LLC	Entertainment	LIBOR (1 month) + 3.00%, Current Coupon 5.47%, Secured Debt (Maturity - February 15, 2024)	997		983		966
Cyxtera DC Holdings, Inc.	Technology Hardware, Storage and Peripherals	LIBOR (3 months) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - May 1, 2024)	2,955		2,966		2,840

																	HMS-ORIX	Loan Portfolio
As of September 30, 2018
As of December 31, 2018									As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value		Industry	Type of Investment	Principal		Cost		Fair Value

Deerfield Holdings Corporation									Diversified Financial Services	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - February 13, 2025)	$	2,978	$	2,974	$	2,827
Diamond Resorts International, Inc.									Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023)	2,130		2,159		1,992
EFS Cogen Holdings I LLC									Electric Utilities	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - June 28, 2023)	1,816		1,830		1,781
Eldorado Resorts, Inc.									Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 17, 2024)	1,000		968		960
Encapsys LLC									Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - November 7, 2024)	993		994		970
Endo Luxembourg Finance Company I S.a.r.l.									Pharmaceuticals	LIBOR (1 month) + 4.25%, Current Coupon 6.81%, Secured Debt (Maturity - April 29, 2024)	1,970		1,989		1,862
Everi Payments Inc.									Leisure Products	LIBOR (3 months) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - May 9, 2024)	1,970		1,963		1,917
Exgen Renewables IV, LLC									Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - November 29, 2024)	294		293		281
Financial & Risk US Holdings, Inc.									Software	LIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - October 1, 2025)	1,425		1,424		1,363
First American Payment Systems, L.P.									Diversified Financial Services	LIBOR (1 month) + 4.75%, Current Coupon 7.29%, Secured Debt (Maturity - January 5, 2024)	889		900		885
Fitness International, LLC	Hotels, Restaurants & Leisure	LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - April 18, 2025)	$	1,584	$	1,606	$	1,590	Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - April 18, 2025)	2,039		2,050		1,963
Flex Acquisition Company Inc	Containers & Packaging	LIBOR (3 months) + 3.00%, Current Coupon 5.34%, Secured Debt (Maturity - December 29, 2023)	1,980		1,988		1,981		Containers and Packaging	LIBOR (3 months) + 3.00%, Current Coupon 5.35%, Secured Debt (Maturity - December 29, 2023)	1,975		1,985		1,869
Flexera Software LLC	Software	LIBOR (1 month) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - February 26, 2025)	1,522		1,518		1,528		Software	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - February 26, 2025)	1,518		1,514		1,468
Gardner Denver, Inc.	Machinery	LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - July 30, 2024)	1,596		1,603		1,606		Machinery	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - July 30, 2024)	2,316		2,309		2,242
Golden Nugget, Inc.	Hotels, Restaurants & Leisure	LIBOR (1 month) + 2.75%, Current Coupon 4.90%, Secured Debt (Maturity - October 4, 2023)	1,951		1,951		1,960		Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.19%, Secured Debt (Maturity - October 4, 2023)	1,875		1,875		1,811
GrafTech Finance Inc.	Diversified Financial Services	LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - February 12, 2025)	1,975		1,956		1,991		Metals and Mining	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - February 12, 2025)	1,950		1,931		1,850
Gray Television, Inc.									Broadcast Radio and Television	LIBOR (3 months) + 2.50%, Current Coupon 4.90%, Secured Debt (Maturity - January 2, 2026)	286		281		277
Greatbatch Ltd.	Health Care Equipment & Supplies	LIBOR (1 month) + 3.00%, Current Coupon 5.14%, Secured Debt (Maturity - October 27, 2022)	2,083		2,093		2,099		Pharmaceuticals	LIBOR (1 month) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - October 27, 2022)	2,000		2,012		1,956
GYP Holdings III Corp.	Trading Companies & Distributors	LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - June 2, 2025)	3,456		3,481		3,453		Trading Companies and Distributors	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - June 2, 2025)	3,448		3,473		3,261
Harbor Freight Tools USA, Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - August 18, 2023)	1,945		1,952		1,949		Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 18, 2023)	1,944		1,951		1,841
HD Supply Waterworks, Ltd.	Trading Companies & Distributors	LIBOR (6 months) + 3.00%, Current Coupon 5.31%, Secured Debt (Maturity - August 1, 2024)	139		139		140		Trading Companies and Distributors	LIBOR (6 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - August 1, 2024)	139		138		134
Horizon Pharma, Inc.	Pharmaceuticals	LIBOR (1 month) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - March 29, 2024)	1,925		1,941		1,943
Huntsman Holdings LLC	Chemicals	LIBOR (3 months) + 5.00%, Current Coupon 7.24%, Secured Debt (Maturity - September 25, 2024)	1,980		1,941		2,002
IG Investments Holdings, LLC	Construction	LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - May 23, 2025)	1,980		1,992		2,000
IRB Holding Corp.	Hotels, Restaurants & Leisure	LIBOR (1 month) + 3.25%, Current Coupon 5.46%, Secured Debt (Maturity - February 5, 2025)	398		398		399
KBR, Inc.	Construction	LIBOR (1 month) + 3.75%, Current Coupon 5.99%, Secured Debt (Maturity - April 25, 2025)	1,247		1,241		1,262
KMG Chemicals, Inc.	Chemicals	LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - June 17, 2024)	737		734		741
KUEHG Corp.	Educational Services	LIBOR (1 month) + 3.75%, Current Coupon 6.14%, Secured Debt (Maturity - February 21, 2025)	2,464		2,471		2,481
LANDesk Group, Inc.	Software	LIBOR (1 month) + 4.25%, Current Coupon 6.33%, Secured Debt (Maturity - January 22, 2024)	986		991		995
Learfield Communications LLC	Media	LIBOR (1 month) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - December 1, 2023)	1,975		1,991		2,000
MA FinanceCo., LLC	Electric Equipment, Instruments & Components	LIBOR (1 month) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - June 21, 2024)	385		385		384
Mallinckrodt International Finance S.A.	Pharmaceuticals	LIBOR (6 months) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - February 24, 2025)	995		993		997

HMS-ORIX
Loan Portfolio
As of September 30, 2018
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

McDermott International, Inc. Oil, Gas & Consumable Fuels LIBOR (1 month) + 5.00%, Current Coupon 7.08%, Secured Debt (Maturity - May 12, 2025) $ 995
$ 976
$ 1,010
Mohegan Tribal Gaming Authority Hotels, Restaurants & Leisure LIBOR (1 month) + 4.00%, Current Coupon 6.24%, Secured Debt (Maturity - October 13, 2023) 1,919
1,934
1,816
MPH Acquisition Holdings LLC Health Care Technology LIBOR (3 months) + 2.75%, Current Coupon 5.14%, Secured Debt (Maturity - June 7, 2023) 2,664
2,695
2,672
NAB Holdings, LLC IT Services LIBOR (3 months) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - July 1, 2024) 1,980
1,971
1,961
Ortho-Clinical Diagnostics, Inc Life Sciences Tools & Services LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - June 30, 2025) 1,955
1,950
1,964
PI UK Holdco II Limited Specialty Finance LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - January 3, 2025) 2,985
2,964
2,982
Rackspace Hosting, Inc. Internet Software & Services LIBOR (3 months) + 3.00%, Current Coupon 5.35%, Secured Debt (Maturity - November 3, 2023) 3,259
3,281
3,221
Radiate Holdco, LLC Media LIBOR (1 month) + 3.00%, Current Coupon 5.24%, Secured Debt (Maturity - February 1, 2024) 2,551
2,528
2,550
Red Ventures, LLC Direct Marketing Services LIBOR (1 month) + 4.00%, Current Coupon 6.24%, Secured Debt (Maturity - November 8, 2024) 1,635
1,624
1,656
Savage Enterprises, LLC Transportation and Logistics LIBOR (1 month) + 4.50%, Current Coupon 6.60%, Secured Debt (Maturity - August 1, 2025) 1,129
1,107
1,146
Scientific Games International, Inc. Leisure Products LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - August 14, 2024) 895
896
894
Seattle SpinCo, Inc. Electric Equipment, Instruments & Components LIBOR (3 months) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - June 21, 2024) 2,600
2,603
2,596
SeaWorld Parks & Entertainment, Inc. Hotels, Restaurants & Leisure LIBOR (3 months) + 3.00%, Current Coupon 5.24%, Secured Debt (Maturity - April 1, 2024) 1,970
1,972
1,970
SRS Distribution Inc. Trading Companies & Distributors LIBOR (3 months) + 3.25%, Current Coupon 5.44%, Secured Debt (Maturity - May 23, 2025) 1,200
1,197
1,193
SS&C Technologies, Inc. Software LIBOR (1 month) + 2.25%, Current Coupon 4.49%, Secured Debt (Maturity - April 16, 2025) 560
559
561
LIBOR (1 month) + 2.25%, Current Coupon 4.49%, Secured Debt (Maturity - April 16, 2025) 217
217
218
777
776
779
Staples, Inc. Distributors LIBOR (3 months) + 4.00%, Current Coupon 6.34%, Secured Debt (Maturity - September 12, 2024) 1,985
1,981
1,990
Starfruit Finco B.V. Chemicals LIBOR (1 month) + 3.25%, Current Coupon 5.57%, Secured Debt (Maturity - October 1, 2025) 1,250
1,247
1,257
Telenet Financing USD LLC Diversified Telecommunications Services LIBOR (1 month) + 2.25%, Current Coupon 4.41%, Secured Debt (Maturity - August 17, 2026) 1,655
1,653
1,650



HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Horizon Pharma, Inc.	Pharmaceuticals	LIBOR (1 month) + 3.00%, Current Coupon 5.56%, Secured Debt (Maturity - March 29, 2024)	$	1,925	$	1,944	$	1,841
Hyland Software, Inc.	Software	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - July 1, 2024)	499		485		486
IG Investments Holdings, LLC	Professional Services	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - May 23, 2025)	1,975		1,987		1,929
Infiltrator Water Technologies, LLC	Specialty Retail	LIBOR (3 months) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - May 27, 2022)	1,394		1,372		1,354
Invenergy, LLC	Renewable Energy Provider	LIBOR (1 month) + 3.50%, Current Coupon 5.84%, Secured Debt (Maturity - August 28, 2025)	1,946		1,941		1,932
IRB Holding Corp.	Food Products	LIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - February 5, 2025)	397		397		380
Ivanti Software, Inc.	Software	LIBOR (1 month) + 4.25%, Current Coupon 6.60%, Secured Debt (Maturity - January 22, 2024)	983		989		959
KBR, Inc.	Aerospace and Defense	LIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - April 25, 2025)	1,992		1,984		1,962
Kingpin Intermediate Holdings LLC	Diversified Consumer Services	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - July 3, 2024)	998		988		971
KUEHG Corp.	Diversified Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.55%, Secured Debt (Maturity - February 21, 2025)	2,457		2,465		2,368
Learfield Communications LLC	Media	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - December 1, 2023)	1,970		1,989		1,923
MA FinanceCo., LLC	Software	LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)	384		385		358
Mallinckrodt International Finance S.A.	Pharmaceuticals	LIBOR (6 months) + 3.00%, Current Coupon 5.62%, Secured Debt (Maturity - February 24, 2025)	993		991		921
Match Group, Inc.	Media	LIBOR (2 months) + 2.50%, Current Coupon 5.09%, Secured Debt (Maturity - November 16, 2022)	2,000		1,998		1,990
McAfee, LLC	Software	LIBOR (3 months) + 3.75%, Current Coupon 6.10%, Secured Debt (Maturity - September 30, 2024)	948		933		925
McDermott International, Inc.	Construction and Engineering	LIBOR (1 month) + 5.00%, Current Coupon 7.52%, Secured Debt (Maturity - May 12, 2025)	993		973		929
Metro-Goldwyn-Mayer Inc.	Media	LIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - July 3, 2025)	998		970		964
Michaels Stores, Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 4.97%, Secured Debt (Maturity - January 30, 2023)	1,000		973		960
Micro Holding Corp. (MH Sub and Internet Brands)	Media	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 13, 2024)	1,247		1,217		1,186
Mohegan Tribal Gaming Authority	Hotels, Restaurants and Leisure	LIBOR (1 month) + 4.00%, Current Coupon 6.52%, Secured Debt (Maturity - October 13, 2023)	1,914		1,933		1,719
MPH Acquisition Holdings LLC	Health Care Technology	LIBOR (1 month) + 3.25%, Current Coupon 5.57%, Secured Debt (Maturity - June 7, 2023)	2,664		2,702		2,532

HMS-ORIX
Loan Portfolio
As of September 30, 2018
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

Transdigm, Inc. Aerospace & Defense LIBOR (1 month) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - June 9, 2023) $ 1,970
$ 1,977
$ 1,980
LIBOR (1 month) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - August 22, 2024) 993
990
997
2,963
2,967
2,977
Travelport Finance (Luxembourg) S.A.R.L. Internet Software & Services LIBOR (3 months) + 2.50%, Current Coupon 4.81%, Secured Debt (Maturity - March 17, 2025) 1,243
1,238
1,245
Traverse Midstream Partners LLC Oil, Gas & Consumable Fuels LIBOR (3 months) + 4.00%, Current Coupon 6.34%, Secured Debt (Maturity - September 27, 2024) 781
784
788
UFC Holdings, LLC Media LIBOR (3 months) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - August 18, 2023) 1,975
1,985
1,989
Ultra Resources, Inc. Oil, Gas & Consumable Fuels LIBOR (1 month) + 3.00%, Current Coupon 5.17%, Secured Debt (Maturity - April 12, 2024) 2,000
2,002
1,808
Utz Quality Foods, LLC Commercial Services & Supplies LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - November 21, 2024) 1,588
1,587
1,595
Valeant Pharmaceuticals International, Inc. Pharmaceuticals LIBOR (1 month) + 3.00%, Current Coupon 5.10%, Secured Debt (Maturity - June 2, 2025) 1,420
1,426
1,429
Vertafore, Inc. Software LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - June 4, 2025) 2,500
2,488
2,514
Vertiv Group Corporation Electrical Equipment LIBOR (3 months) + 4.00%, Current Coupon 6.31%, Secured Debt (Maturity - November 30, 2023) 1,555
1,567
1,547
Vistra Operations Company LLC Electric Utilities LIBOR (1 month) + 2.25%, Current Coupon 4.49%, Secured Debt (Maturity - December 14, 2023) 1,970
1,980
1,977
Web.com Group, Inc. Internet Software and Services LIBOR (3 months) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - September 17, 2025) 1,000
1,000
1,008
West Corporation Diversified Telecommunications Services LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - October 10, 2024) 648
648
644
LIBOR (1 month) + 4.00%, Current Coupon 6.24%, Secured Debt (Maturity - October 10, 2024) 1,024
1,015
1,022
1,672
1,663
1,666
WideOpenWest Finance, LLC Diversified Telecommunications Services LIBOR (1 month) + 3.25%, Current Coupon 5.41%, Secured Debt (Maturity - August 18, 2023) 3,470
3,478
3,410
Total Loan Portfolio $ 143,965
$ 143,745

~~The following table presents a listing of HMS-ORIX’s individual loan investments as of December 31, 2017:~~

HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

Acosta, Inc. Commercial Services and Supplies LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 26, 2021) $ 2,000
$ 1,881
$ 1,766
Acrisure, LLC Insurance LIBOR (2 months) + 4.25%, Current Coupon 5.65%, Secured Debt (Maturity - November 22, 2023) 2,115
2,122
2,139
Advantage Sales & Marketing Inc. Commercial Services and Supplies LIBOR (1 month) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - July 23, 2021) 1,990
1,938
1,945
Air Medical Group Holdings Inc Health Care Providers & Services LIBOR (6 months) + 4.00%, Current Coupon 5.67%, Secured Debt (Maturity - April 28, 2022) 1,990
1,981
1,993
Albany Molecular Research, Inc. Life Sciences Tools & Services LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 28, 2024) 100
100
99
Alphabet Holding Company, Inc. Food Products LIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - September 26, 2024) 1,995
1,985
1,935
American Seafoods Group LLC Food Products Prime + 2.25%, Current Coupon 6.75%, Secured Debt (Maturity - August 21, 2023) 1,500
1,493
1,513
Ancestry.com Operations Inc. Internet Software & Services LIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 19, 2023) 1,995
2,013
2,007
Arch Coal, Inc. Metals & Mining LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - March 7, 2024) 1,985
1,992
2,004
AshCo, Inc. Specialty Retail LIBOR (3 months) + 5.00%, Current Coupon 6.57%, Secured Debt (Maturity - September 25, 2024) 1,995
1,951
1,993
Asurion, LLC Insurance LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - November 3, 2023) 1,312
1,312
1,320
Atkore International, Inc. Electric Equipment, Instruments & Components LIBOR (3 months) + 3.00%, Current Coupon 4.70%, Secured Debt (Maturity - December 22, 2023) 2,977
3,005
2,999
BCP Renaissance Parent L.L.C. Oil, Gas & Consumable Fuels LIBOR (3 months) + 4.00%, Current Coupon 5.38%, Secured Debt (Maturity - October 31, 2024) 600
602
608
BMC Software Finance, Inc. Software LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 12, 2022) 3,156
3,181
3,163
Builders FirstSource, Inc. Building Products LIBOR (1 month) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - February 29, 2024) 2,977
2,974
2,993
Calpine Corporation Independent Power and Renewable Electricity Producers LIBOR (3 months) + 2.50%, Current Coupon 4.20%, Secured Debt (Maturity - January 15, 2023) 1,990
1,997
1,991
CHS/Community Health Systems, Inc. Health Care Providers & Services LIBOR (3 months) + 3.00%, Current Coupon 4.48%, Secured Debt (Maturity - January 27, 2021) 1,613
1,608
1,543
ClubCorp Holdings, Inc. Real Estate Management & Development LIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - September 18, 2024) 1,959
1,949
1,969
Colorado Buyer Inc Technology Hardware, Storage & Peripherals LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - May 1, 2024) 2,985
2,995
3,008
Confie Seguros Holding II Co. Insurance LIBOR (1 month) + 5.25%, Current Coupon 6.73%, Secured Debt (Maturity - April 19, 2022) 1,985
1,992
1,987



HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

NAB Holdings, LLC	IT Services	LIBOR (3 months) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - July 1, 2024)	$	1,975	$	1,965	$	1,885
Ortho-Clinical Diagnostics, Inc	Life Sciences Tools and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.76%, Secured Debt (Maturity - June 30, 2025)	1,945		1,940		1,809
Packaging Coordinators Midco Inc	Health Care Facilities and Services	LIBOR (3 months) + 4.00%, Current Coupon 6.81%, Secured Debt (Maturity - June 30, 2023)	997		992		985
Party City Holdings Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - August 19, 2022)	1,245		1,224		1,205
PI UK Holdco II Limited	Diversified Financial Services	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - January 3, 2025)	2,978		2,956		2,893
Prime Security Services, LLC (Protection One)	Commercial Services and Supplies	LIBOR (1 month) + 2.75%, Current Coupon 5.09%, Secured Debt (Maturity - May 2, 2022)	654		638		628
Rackspace Hosting, Inc.	Electric Equipment, Instruments and Components	LIBOR (3 months) + 3.00%, Current Coupon 5.58%, Secured Debt (Maturity - November 3, 2023)	3,251		3,276		2,884
Radiate Holdco, LLC	Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - February 1, 2024)	2,544		2,519		2,408
Red Ventures, LLC	Professional Services	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 8, 2024)	1,631		1,619		1,590
Savage Enterprises, LLC	Road and Rail	LIBOR (1 month) + 4.50%, Current Coupon 6.88%, Secured Debt (Maturity - August 1, 2025)	1,097		1,076		1,085
Scientific Games International, Inc.	Leisure Products	LIBOR (2 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - August 14, 2024)	892		893		840
Seattle SpinCo, Inc.	Software	LIBOR (3 months) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)	2,593		2,597		2,422
SeaWorld Parks & Entertainment, Inc.	Hotels, Restaurants and Leisure	LIBOR (3 months) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - April 1, 2024)	1,965		1,967		1,881
ServiceMaster Global Holdings, Inc.	Home and Office Products	LIBOR (1 month) + 2.50%, Current Coupon 4.84%, Secured Debt (Maturity - November 8, 2023)	2,000		1,993		1,964
Sprint Corporation	Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - February 2, 2024)	500		493		485
SRS Distribution Inc.	Trading Companies and Distributors	LIBOR (3 months) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - May 23, 2025)	1,197		1,194		1,120
SS&C European Holdings S.a.r.l.	Software	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)	206		205		195
SS&C Technologies, Inc.	Software	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)	543		541		514
Staples, Inc.	Distributors	LIBOR (3 months) + 4.00%, Current Coupon 6.54%, Secured Debt (Maturity - September 12, 2024)	1,980		1,975		1,903
Starfruit US Holdco LLC	Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.60%, Secured Debt (Maturity - October 1, 2025)	1,250		1,247		1,204
Telenet Financing USD LLC	Diversified Telecommunication Services	LIBOR (1 month) + 2.25%, Current Coupon 4.71%, Secured Debt (Maturity - August 17, 2026)	1,655		1,653		1,580

HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

CPI International, Inc. Aerospace & Defense LIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - July 26, 2024) $ 1,995
$ 1,995
$ 2,011
Diamond Resorts International, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 4.50%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023) 2,152
2,179
2,173
Duff & Phelps Corporation Diversified Financial Services LIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - October 15, 2024) 491
494
493
LIBOR (3 months) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - December 4, 2024) 2,728
2,724
2,737
3,219
3,218
3,230
EFS Cogen Holdings I LLC Electric Utilities LIBOR (3 months) + 3.25%, Current Coupon 4.95%, Secured Debt (Maturity - June 28, 2023) 1,904
1,917
1,925
Encapsys LLC Chemicals LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - November 7, 2024) 1,000
1,001
1,006
Endo Luxembourg Finance Company I S.a.r.l. Pharmaceuticals LIBOR (1 month) + 4.25%, Current Coupon 5.88%, Secured Debt (Maturity - April 29, 2024) 1,990
2,009
2,005
Envision Healthcare Corporation Health Care Providers & Services LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - December 1, 2023) 2,481
2,481
2,491
Everi Payments Inc. Leisure Products LIBOR (3 months) + 3.50%, Current Coupon 4.98%, Secured Debt (Maturity - May 9, 2024) 1,990
1,983
2,013
Exgen Renewables IV, LLC Electrical Production LIBOR (3 months) + 3.00%, Current Coupon 4.47%, Secured Debt (Maturity - November 29, 2024) 300
299
304
First American Payment Systems, L.P. Diversified Financial Services LIBOR (1 month) + 5.75%, Current Coupon 7.14%, Secured Debt (Maturity - January 5, 2024) 952
963
958
Fitness International, LLC Hotels, Restaurants & Leisure LIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - July 1, 2020) 1,735
1,757
1,760
Flex Acquisition Company Inc Containers & Packaging LIBOR (3 months) + 3.00%, Current Coupon 4.34%, Secured Debt (Maturity - December 29, 2023) 1,995
2,004
2,008
Flexera Software LLC Software LIBOR (1 month) + 3.50%, Current Coupon 4.83%, Secured Debt (Maturity - April 2, 2020) 1,995
2,013
2,008
Gardner Denver, Inc. Machinery LIBOR (1 month) + 2.75%, Current Coupon 4.44%, Secured Debt (Maturity - July 30, 2024) 1,995
2,005
2,004
Golden Nugget, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 4, 2023) 1,990
1,990
2,008
Greatbatch Ltd. Health Care Equipment & Supplies LIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 27, 2022) 2,763
2,780
2,788
GYP Holdings III Corp. Trading Companies & Distributors LIBOR (1 month) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - March 31, 2023) 3,483
3,506
3,502
Harbor Freight Tools USA, Inc. Specialty Retail LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 18, 2023) 1,980
1,987
1,996
HD Supply Waterworks, Ltd. Trading Companies & Distributors LIBOR (6 months) + 3.00%, Current Coupon 4.46%, Secured Debt (Maturity - August 1, 2024) 140
140
141

HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

Horizon Pharma, Inc. Pharmaceuticals LIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - March 29, 2024) $ 1,990
$ 2,009
$ 2,001
IG Investments Holdings, LLC Professional Services LIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - October 29, 2021) 1,990
2,002
1,992
Jackson Hewitt Tax Service Inc. Diversified Financial Services LIBOR (1 month) + 7.00%, Current Coupon 8.38%, Secured Debt (Maturity - July 30, 2020) 1,939
1,868
1,922
KMG Chemicals, Inc. Chemicals LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 17, 2024) 863
859
868
KUEHG Corp. Educational Services LIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - August 12, 2022) 2,482
2,489
2,493
LANDesk Group, Inc. Software LIBOR (1 month) + 4.25%, Current Coupon 5.82%, Secured Debt (Maturity - January 22, 2024) 993
999
947
Learfield Communications LLC Media LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - December 1, 2023) 1,990
2,009
2,007
MA FinanceCo., LLC Electric Equipment, Instruments & Components LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024) 387
387
388
Mohegan Tribal Gaming Authority Hotels, Restaurants & Leisure LIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - October 13, 2023) 1,985
2,003
2,006
MPH Acquisition Holdings LLC Health Care Technology LIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - June 7, 2023) 2,896
2,935
2,905
NAB Holdings, LLC IT Services LIBOR (3 months) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - July 1, 2024) 1,990
1,981
2,000
Ortho-Clinical Diagnostics, Inc Life Sciences Tools & Services LIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - June 30, 2021) 1,985
1,980
1,992
PODS, LLC Transportation & Logistics LIBOR (1 month) + 3.00%, Current Coupon 4.40%, Secured Debt (Maturity - December 6, 2024) 1,995
1,994
2,010
Rackspace Hosting, Inc. Electric Equipment, Instruments & Components LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - November 3, 2023) 3,284
3,309
3,286
Radiate Holdco, LLC Media LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - February 1, 2024) 2,570
2,544
2,547
Red Ventures, LLC Direct Marketing Services LIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - November 8, 2024) 1,995
1,981
1,996
Scientific Games International, Inc. Leisure Products LIBOR (1 month) + 3.25%, Current Coupon 4.67%, Secured Debt (Maturity - August 14, 2024) 399
401
403
Seattle Spin Co. Electric Equipment, Instruments & Components LIBOR (3 months) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024) 2,613
2,616
2,618
SeaWorld Parks & Entertainment, Inc. Hotels, Restaurants & Leisure LIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - April 1, 2024) 1,985
1,987
1,966
Signode Industrial Group US Inc. Machinery LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - April 30, 2021) 2,773
2,792
2,785
Staples, Inc. Distributors LIBOR (3 months) + 4.00%, Current Coupon 5.49%, Secured Debt (Maturity - September 12, 2024) 2,000
1,995
1,965

																	HMS-ORIX	Loan Portfolio
As of December 31, 2017
As of December 31, 2018									As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value		Industry	Type of Investment	Principal		Cost		Fair Value

Telenet Financing USD LLC	Diversified Telecommunications Services	LIBOR (1 month) + 2.50%, Current Coupon 3.92%, Secured Debt (Maturity - March 2, 2026)	$	1,655	$	1,655	$	1,663
Transdigm, Inc.	Aerospace & Defense	LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 9, 2023)	1,985		1,992		1,990		Aerospace and Defense	LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 9, 2023)	$	1,965	$	1,972	$	1,859
		LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - August 22, 2024)	1,000		998		1,006			LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 22, 2024)	990		988		937
			2,985		2,990		2,996				2,955		2,960		2,796
Travelport Finance (Luxembourg) S.A.R.L.	Internet Software & Services	LIBOR (3 months) + 2.75%, Current Coupon 4.17%, Secured Debt (Maturity - September 2, 2021)	1,901		1,901		1,903		Internet Software and Services	LIBOR (3 months) + 2.50%, Current Coupon 5.12%, Secured Debt (Maturity - March 17, 2025)	1,237		1,231		1,219
Traverse Midstream Partners LLC	Oil, Gas & Consumable Fuels	LIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024)	781		784		793		Oil, Gas and Consumable Fuels	LIBOR (3 months) + 4.00%, Current Coupon 6.60%, Secured Debt (Maturity - September 27, 2024)	781		784		752
UFC Holdings, LLC	Media	LIBOR (3 months) + 3.25%, Current Coupon 4.81%, Secured Debt (Maturity - August 18, 2023)	1,990		2,002		2,003		Media	LIBOR (3 months) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - August 18, 2023)	1,965		1,977		1,920
Ultra Resources, Inc.	Oil, Gas & Consumable Fuels	LIBOR (1 month) + 3.00%, Current Coupon 4.41%, Secured Debt (Maturity - April 12, 2024)	2,000		2,002		2,002
USS Ultimate Holdings, Inc. (United Site)									Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.09%, Secured Debt (Maturity - August 26, 2024)	598		590		590
Utz Quality Foods, LLC	Commercial Services and Supplies	LIBOR (1 month) + 3.50%, Current Coupon 5.01%, Secured Debt (Maturity - November 21, 2024)	1,600		1,599		1,616		Food Products	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - November 21, 2024)	1,584		1,583		1,539
Valeant Pharmaceuticals International, Inc.	Pharmaceuticals	LIBOR (1 month) + 3.50%, Current Coupon 4.94%, Secured Debt (Maturity - April 1, 2022)	1,546		1,553		1,570
VeriFone Systems, Inc.									Hardware	LIBOR (1 month) + 4.00%, Current Coupon 6.64%, Secured Debt (Maturity - August 20, 2025)	500		490		485
Vertafore, Inc.									Software	LIBOR (1 month) + 3.25%, Current Coupon 6.05%, Secured Debt (Maturity - July 2, 2025)	2,500		2,488		2,384
Vertiv Group Corporation	Electrical Equipment	LIBOR (3 months) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - November 30, 2023)	1,555		1,569		1,556		Electrical Equipment	LIBOR (3 months) + 4.00%, Current Coupon 6.71%, Secured Debt (Maturity - November 30, 2023)	1,555		1,570		1,420
Vistra Operations Company LLC	Electric Utilities	LIBOR (2 months) + 2.75%, Current Coupon 4.08%, Secured Debt (Maturity - December 14, 2023)	1,985		1,996		2,001		Electric Utilities	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - December 14, 2023)	1,965		1,977		1,895
Web.Com Group, Inc.									Internet Software and Services	LIBOR (3 months) + 3.75%, Current Coupon 6.17%, Secured Debt (Maturity - October 10, 2025)	1,000		1,000		965
West Corporation	Diversified Telecommunications Services	LIBOR (1 month) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - October 10, 2024)	1,032		1,022		1,036		Diversified Telecommunication Services	LIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 10, 2024)	647		646		593
										LIBOR (3 months) + 4.00%, Current Coupon 6.53%, Secured Debt (Maturity - October 10, 2024)	1,021		1,011		941
											1,668		1,657		1,534
WideOpenWest Finance, LLC	Diversified Telecommunications Services	LIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - August 18, 2023)	3,496		3,506		3,470		Diversified Telecommunication Services	LIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - August 18, 2023)	3,461		3,471		3,215
William Morris Endeavor Entertainment, LLC									Recreation Facilities and Services	LIBOR (3 months) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - May 16, 2025)	638		608		608
Zekelman Industries, Inc									Manufactured Goods	LIBOR (1 month) + 2.25%, Current Coupon 4.86%, Secured Debt (Maturity - June 14, 2021)	1,000		985		970
Total Loan Portfolio					$	139,017	$	139,012			$	165,025	$	164,570	$	157,923

For the three months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company recognized approximately ~~$536,000~~$0 and ~~$0,~~530,000, respectively, of dividend income in respect of its investment in HMS-ORIX. For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~for the period from inception (April 4, 2017) to September 30, 2017,~~2018, the Company recognized approximately ~~$1.6~~$546,000 and $1.1 million, ~~and $0,~~ respectively, of dividend income in respect of its investment in HMS-ORIX.

The following tables show the summarized financial information for HMS-ORIX (dollars in thousands):

									HMS-ORIX SLF LLC
Balance Sheet (Unaudited)
Balance Sheet					Balance Sheet
(dollars in thousands)

	As of September 30, 2018		As of December 31, 2017		As of June 30, 2019		As of December 31, 2018
Assets
Portfolio investments at fair value (amortized cost: $143,965 and $139,017 as of September 30, 2018 and December 31, 2017, respectively)	$	143,745	$	139,012
Portfolio investments at fair value (amortized cost: $164,570 as of December 31, 2018)					$	—	$	157,923
Cash and cash equivalents	3,967		2,681		320		3,873
Receivable for securities sold	2,891		—
Interest receivable	268		306		—		197
Deferred financing costs, net	596		890		—		497
Other assets	31		15		—		30
Total assets	$	151,498	$	142,904	$	320	$	162,520
Liabilities
Credit facilities payable	$	93,300	$	86,500	$	—	$	98,818
Payable for securities purchased	6,443		5,268		—		18,442
Distributions payable	893		—		—		902
Accounts payable and accrued expenses	79		64		10		439
Total liabilities	100,715		91,832		10		118,601
Net assets
Members’ equity	50,783		51,072		310		43,919
Total net assets	50,783		51,072		310		43,919
Total liabilities and net assets	$	151,498	$	142,904	$	320	$	162,520

																										HMS-ORIX SLF LLC
Statement of Operations (Unaudited)
Statement of Operations														Statement of Operations
(dollars in thousands)
	Three Months Ended						Nine Months Ended September 30, 2018				For the Period from Inception (April 4, 2017) through September 30, 2017			Three Months Ended						Six Months Ended
	September 30, 2018			September 30, 2017						June 30, 2019					June 30, 2018			June 30, 2019			June 30, 2018
Investment income
Interest income	$	1,944		$	1,554		$	5,566			$	2,048		$	480		$	1,888		$	3,028		$	3,622
Dividend income	—			—			—				—			—			—			—			—
Fee income	—			—			—				—			—			—			—			—
Other income	—			—			—				—			—			—			—			—
Total investment income	1,944			1,554			5,566				2,048			480			1,888			3,028			3,622
Expenses
Interest expense	988			615			2,759				866			883			921			2,130			1,771
Other expenses	—			2			1				34			—			2			—			2
General and administrative expenses	20			24			67				45			25			26			36			47
Total expenses	1,008			641			2,827				945			908			949			2,166			1,820
Net investment income	936			913			2,739				1,103
Net investment income (loss)														(428		)	939			862			1,802
Net realized loss from investments	(17		)	(16		)	(392		)		(17		)	(1,513		)	(348		)	(1,514		)	(374		)
Net realized income	919			897			2,347				1,086
Net realized income (loss)														(1,941		)	591			(652		)	1,428
Net change in unrealized appreciation (depreciation) on investments	1,013			—			15				(226		)	2,008			(939		)	6,647			(998		)
Net increase in net assets resulting from operations	$	1,932		$	897		$	2,362			$	860
Net increase (decrease) in net assets resulting from operations														$	67		$	(348	)	$	5,995		$	430

Note 5 — Unconsolidated Significant Subsidiaries

In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, the Company must determine which of its unconsolidated controlled portfolio companies, if any, are considered "significant subsidiaries." After performing this analysis, the Company determined that GRT Rubber Technologies, LLC (“GRT”) was a significant subsidiary for the three months ended June 30, 2019 and for the year ended December 31, 2018, under at least one of the significance conditions of Rule 4-08(g) of Regulation S-X. The Company had no “significant subsidiaries” under Rule 3-09 for the three months ended June 30, 2019 and 2018 or for the year ended December 31, 2018, and under Rule 4-08(g) of Regulation S-X for the three months ended June 30, 2018.

The following tables show the summarized financial information for GRT (dollars in thousands):



	As of
	June 30, 2019		December 31, 2018
Balance Sheet Data
Current assets	$	11,206	$	8,399
Noncurrent assets	22,447		24,242
Current liabilities	4,228		2,870
Non Current liabilities	19,787		14,445



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Summary of Operations
Total revenue	$	10,422	$	10,340	$	20,640	$	19,598
Gross profit	3,062		2,633		6,224		4,990
Income from operations	1,934		1,496		3,896		2,628
Net income	1,156		960		2,398		1,380

Note 6 — Borrowings

A BDC has historically been able to issue “senior securities,” including borrowing money from banks or other financial institutions, only in amounts such that its asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence or issuance. In March 2018, the Small Business Credit Availability Act (the “SBCAA”) was enacted into law. The SBCAA, among other things, amended the 1940 Act to reduce the asset coverage requirement applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure

requirements, obtains certain approvals and, in the case of unlisted BDCs, makes an offer to repurchase shares held by its stockholders as of the date of the requisite approval. Effectiveness of the reduced asset coverage requirements to a BDC requires approval by either (1) a “required majority” (as defined in Section 57(o) of the 1940 Act) of such BDC’s board of directors with effectiveness one year after the date of such approval or (2) a majority of the votes cast at a special or annual meeting of such BDC’s stockholders at which a quorum is present, which is effective the day after such stockholder approval. The Company has not requested or obtained any such ~~approval.~~approval and, as a result, remains subject to the 200% asset coverage requirement.

On March 6, 2017, the Company entered into an amended and restated senior secured revolving credit agreement (the “TIAA Credit Facility”) with TIAA, FSB (formerly known as EverBank Commercial Finance, Inc. prior to June 18, 2018) (“TIAA Bank”), as administrative agent, and with TIAA Bank and other financial institutions as lender. The TIAA Credit Facility, as amended, features aggregate revolver commitments of $120.0 ~~million.~~million and will mature March 6, 2020, with two one-year extension options, subject to lender approval. Borrowings under the TIAA Credit Facility bear interest, subject to the Company’s election, on a per annum basis equal to (i) the adjusted LIBOR rate plus 2.75% or (ii) the base rate plus 1.75%. The base rate is defined as the higher of (a) the prime rate, (b) the Federal Funds Rate (as defined in the credit agreement) plus 0.5% or (c) the adjusted LIBOR rate plus 1.0%. The adjusted LIBOR rate is defined in the credit agreement for the TIAA Credit Facility as the one-month LIBOR rate plus an adjustment for statutory reserve requirements for Eurocurrency liabilities as described in the credit agreement. As of ~~September~~June 30, ~~2018,~~2019, the one-month LIBOR rate was ~~2.26%~~2.40%. Additionally, the Company pays an annual unused commitment fee of ~~0.300%~~0.30% on the unused revolver commitments if more than 50% of the revolver commitments are being used and an annual unused commitment fee of 0.625% on the unused revolver commitments if less than 50% of the revolver commitments are being used. As of ~~September~~June 30, ~~2018,~~2019, the Company was not aware of any instances of noncompliance with covenants related to the TIAA Credit Facility.

On May 18, 2015, HMS Funding entered into an amended and restated credit agreement (the “Deutsche Bank Credit Facility”) among HMS Funding, as borrower, the Company, as equityholder and as servicer, Deutsche Bank AG, New York Branch (“Deutsche Bank”), as administrative agent, the financial institutions party thereto as lenders (together with Deutsche Bank, the “HMS Funding Lenders”), and U.S. Bank National Association, as collateral agent and collateral custodian. As of ~~September~~June 30, ~~2018,~~2019, the Deutsche Bank Credit Facility, as amended, provided a borrowing capacity of $450.0 million, with an accordion provision allowing increases in aggregate commitments, not to exceed $550.0 million, with lender consent. Under the Deutsche Bank Credit Facility, interest

is calculated as the sum of the index plus the applicable margin of 2.35%. The index will be equal to one-month LIBOR, or, in the event that LIBOR is not reasonably available, the higher of Deutsche Bank’s base commercial lending rate and the interest rate equal to 0.5% above the federal funds rate. As of ~~September~~June 30, ~~2018,~~2019, the one-month LIBOR ~~rate~~ was ~~2.26%~~2.40%. The Deutsche Bank Credit Facility provides for a revolving period until November 20, 2020, unless otherwise extended with the consent of the HMS Funding Lenders. The amortization period begins the day after the last day of the revolving period and ends on November 20, 2022, the maturity date. During the amortization period, the applicable margin will increase by 0.25%. During the revolving period, HMS Funding will pay a utilization fee equal to 2.50% of the undrawn amount of the required utilization, which is 75% of the loan commitment amount. HMS Funding will incur an undrawn fee equal to 0.40% per annum of the difference between the aggregate commitments and the outstanding advances under the facility, provided that the undrawn fee relating to any utilization shortfall will not be payable to the extent that the utilization fee relating to such utilization shortfall is incurred. Additionally, under the terms of a fee letter executed on November 20, 2017, HMS Funding pays Deutsche Bank an administrative agent fee of 0.25% per annum of the aggregate revolver ~~commitments.As~~commitments. As of ~~September~~June 30, ~~2018,~~2019, the Company was not aware of any instances of noncompliance with covenants related to the Deutsche Bank Credit Facility.

As of ~~September~~June 30, ~~2018,~~2019, the Company had borrowings of $120.0 million outstanding on the TIAA Credit Facility and had borrowings of ~~$390.0~~$338.0 million outstanding on the Deutsche Bank Credit Facility, both of which the Company estimated approximated fair value.

A summary of the Company’s significant contractual payment obligations for the repayment of outstanding borrowings at ~~September~~June 30, ~~2018~~2019 is as follows:


	Payments Due By Period (dollars in thousands)										Payments Due By Period (dollars in thousands)
	Total		Less than 1 year		1-3 years		3-5 years		After 5 years		Total		Less than 1 year		1-3 years		3-5 years		After 5 years
TIAA Credit Facility ⁽¹⁾	$	120,000	$	—	$	120,000	$	—	$	—	$	120,000	$	120,000	$	—	$	—	$	—
Deutsche Bank Credit Facility ⁽²⁾	390,000		—		—		390,000		—		338,000		—		—		338,000		—
Total Credit Facilities	$	510,000	$	—	$	120,000	$	390,000	$	—	$	458,000	$	120,000	$	—	$	338,000	$	—


(1)	At ~~September~~June 30, ~~2018,~~2019, the Company had no availability under the TIAA Credit Facility.


(2)	At ~~September~~June 30, ~~2018, $60.0~~2019, $112.0 million remained available under the Deutsche Bank Credit Facility; however, the Company’s borrowing ability is limited to the asset coverage ~~ratio~~ restrictions imposed by the 1940 Act, as discussed above.

Note 67 – Financial Highlights

The following is a schedule of financial highlights of the Company for the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017.~~2018.


Per Share Data:	Nine Months Ended September 30, 2018			Nine Months Ended September 30, 2017			Six Months Ended June 30, 2019			Six Months Ended June 30, 2018
NAV at beginning of period	$	8.15		$	8.15		$	7.96		$	8.15
Results from Operations
Net investment income ^{(1) (2)}	0.60			0.56			0.35			0.33
Net realized appreciation (depreciation) ^{(1) (2)}	(0.25		)	0.04
Net change in unrealized appreciation (depreciation) on investments^{(1) (2)}	0.30			(0.09		)
Net realized loss on investments ^{(1) (2)}							(0.09		)	(0.10		)
Net change in unrealized appreciation on investments^{(1) (2)}							0.13			0.12
Net increase in net assets resulting from operations	0.65			0.51			0.39			0.35
Stockholder distributions^{(1) (3)}
Distributions from net investment income ^{(1) (2)}	(0.52		)	(0.48		)	(0.35		)	(0.35		)
Distributions from realized appreciation ^{(1) (2)}	—			(0.04		)	—			—
Net decrease in net assets resulting from stockholder distributions	(0.52		)	(0.52		)	(0.35		)	(0.35		)
Capital share transactions
Issuance of common stock above NAV, net of offering costs ⁽¹⁾	—			0.02			—			—
Net increase in net assets resulting from capital share transactions	—			0.02			—			—
NAV at end of the period	$	8.28		$	8.16		$	8.00		$	8.15
Shares of common stock outstanding at end of period	78,616,770			79,204,960			78,530,056			78,788,407
Weighted average shares of common stock outstanding	79,383,151			76,899,096			78,806,540			79,586,935


(1)	Based on weighted average number of shares of common stock outstanding for the period.


(2)	Changes in net investment income and realized and unrealized appreciation (depreciation) on investments can change significantly from period to period.


(3)	The stockholder distributions represent the stockholder distributions declared for the period.


	Nine Months Ended September 30, 2018			Nine Months Ended September 30, 2017			Six Months Ended June 30, 2019			Six Months Ended June 30, 2018
	(dollars in thousands)						(dollars in thousands)
Net assets at end of period	$	650,735		$	645,945		$	628,374		$	642,169
Average net assets	$	646,940		$	625,272		$	628,044		$	645,675
Average Credit Facilities borrowings	$	475,500		$	426,500		$	489,000		$	464,000

Ratios to average net assets:
Ratio of total expenses to average net assets⁽¹⁾	5.81		%	5.28		%	4.78		%	3.80		%
Ratio of net investment income to average net assets ⁽¹⁾	7.32		%	6.92		%	4.42		%	4.10		%
Portfolio turnover ratio	36.77		%	36.85		%	17.48		%	23.61		%
Total return⁽²⁾	7.98		%	6.50		%	4.90		%	4.29		%

(1)

For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Advisers did not waive base management fees ~~but waived~~or subordinated incentive fees but waived reimbursement of ~~approximately $3.4 million and $2.3 million, respectively, and~~ internal administrative services expenses of approximately ~~$2.0~~$1.5 million and ~~$2.2~~$1.4 million, respectively. The ratio is calculated by reducing the expenses to reflect the waiver of ~~expenses and~~ reimbursement of internal administrative services expenses in both periods presented. Excluding interest expense, the ratio of total expenses to average net assets for the ~~nine~~six months ended ~~September~~June 30, 2019 and 2018 was 2.59% and ~~September 30, 2017 was 3.05% and 3.14%~~2.06%, respectively. See Note ~~10 -~~11 — Related Party Transactions and Arrangements for further discussion of fee waivers provided by the Advisers.


(2)	Total return is calculated onas the change in NAV per share and stockholder distributions declared per share over the reporting period, divided by the NAV per share at the beginning of the period. The total return does not reflect the sales load from the sale of the Company’s common stock.

Note 78 – Stockholder Distributions

The following table reflects the cash distributions per share that the Company declared on its common stock during the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017~~2018 (dollars in thousands except per share amounts).

Distributions
Per Share Amount
2018
Three months ended September 30, 2018 $ 0.17
$ 13,938
Three months ended June 30, 2018 $ 0.18
$ 13,855
Three months ended March 31, 2018 $ 0.17
$ 13,803
2017
Three months ended September 30, 2017 $ 0.17
$ 13,910
Three months ended June 30, 2017 $ 0.18
$ 13,438
Three months ended March 31, 2017 $ 0.17
$ 12,922



	Distributions
	Per Share		Amount
2019
Three months ended June 30, 2019	$	0.18	$	13,754
Three months ended March 31, 2019	$	0.17	$	13,606
2018
Three months ended June 30, 2018	$	0.18	$	13,855
Three months ended March 31, 2018	$	0.17	$	13,803

On ~~September 14, 2018,~~June 26, 2019, with the authorization of the Company’s board of directors, the Company declared distributions to its stockholders for the period of ~~October 2018~~July 2019 through ~~December 2018.~~September 2019. These distributions have been, or will be, calculated based on stockholders of record each day from ~~October~~July 1, ~~2018~~2019 through ~~December 31, 2018~~September 30, 2019 in an amount equal to $0.00191781 per share, per day. Distributions are paid on the first business day following the completion of each month to which they relate.

The Company has adopted an “opt in” distribution reinvestment plan for its stockholders. As a result, if the Company makes a distribution, its stockholders will receive distributions in cash unless they specifically “opt in” to the distribution reinvestment plan so as to have their cash distributions reinvested in additional shares of the Company’s common stock.

The following table reflects the sources of the cash distributions that the Company declared and, in some instances, paid on its common stock during the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017.~~2018.


	Nine Months Ended September 30, 2018				Nine Months Ended September 30, 2017				Six Months Ended June 30, 2019				Six Months Ended June 30, 2018
	(dollars in thousands)								(dollars in thousands)
Source of Distribution	Distribution Amount		Percentage		Distribution Amount		Percentage		Distribution Amount		Percentage		Distribution Amount		Percentage
Net realized income from operations (before waiver of incentive fees)	$	24,219	58.2	%	$	40,270	100.0	%	$	20,854	76.2	%	$	18,681	67.5	%
Waiver of incentive fees	3,386		8.2		—		—
Distributions in excess of net realized income from operations ⁽¹⁾	13,991		33.6		—		—		6,506		23.8		8,977		32.5
Total	$	41,596	100.0	%	$	40,270	100.0	%	$	27,360	100.0	%	$	27,658	100.0	%


(1)	Includes adjustments made to GAAP-basis net investment income to arrive at taxable income available for distributions. See Note 89 — Taxable Income for the sources of the Company’s cash distributions on a tax basis.

The Company may fund its cash distributions from all sources of funds legally available, including stock offering proceeds, if any, 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 it on account of preferred and common equity investments in

portfolio companies, and fee ~~and expense~~ waivers from its Advisers. The Company has not established limits on the amount of funds that the Company may use from legally available sources to make distributions. The Company expects that for the foreseeable future, a portion of the distributions may be paid from sources other than net realized income from operations, which may include stock offering proceeds, if any, borrowings, and fee ~~and expense~~ waivers from the Advisers. See Note ~~10 -~~11 — Related Party Transactions and Arrangements -— Advisory Agreements and Conditional Fee Waiver and Expense Reimbursement Waivers.

The Company’s distributions may exceed its earnings and, as a result, a portion of the distributions it makes may represent a return of capital for U.S. federal income tax purposes. The timing and amount of any future distributions to stockholders are subject to applicable legal restrictions and the sole discretion of the Company’s board of directors.

Note 89 – Taxable Income

The Company has elected to be treated for U.S. federal income tax purposes as a RIC. As a RIC, the Company generally will not incur corporate-level U.S. federal income taxes on net ordinary income or capital gains that the Company timely distributes each taxable year as dividends to its stockholders. To qualify as a RIC in any taxable year, the Company must, among other things, satisfy certain source-of-income and asset diversification requirements. In addition, the Company must distribute an amount in

each taxable year generally at least equal to 90% of its investment company taxable income, determined without regard to any deduction for dividends paid, in order to maintain its ability to be subject to taxation as a RIC. As a part of maintaining its RIC status, undistributed taxable income (subject to a 4% nondeductible, U.S. federal excise tax) pertaining to a given taxable year may be distributed up to 12 months subsequent to the end of that taxable year, provided such distributions are declared prior to the ~~earlier~~later of eight-and-one-half months after the close of ~~that~~the taxable year in which such taxable income was generated or the extended due date for the timely filing of the ~~U.S. federal income~~ tax return ~~for~~related to the tax year in which such ~~prior~~ taxable ~~year. In order~~income was generated and paid to ~~avoid~~ the ~~imposition~~shareholders in the 12-month period following the close of such taxable year and not later than the date of the ~~4% nondeductible, U.S. federal excise tax,~~first dividend payment of the ~~Company needs to distribute, in respect~~same type of each calendar year, dividends of an amount at least equal to the sum of: (1) 98.0% of its net ordinary income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of its capital gain in excess of capital loss, or capital gain net income, (adjusted for certain ordinary losses) for the one-year period generally ending on October 31 of that calendar year (or, if the Company so elects for that calendar year) and (3) any net ordinary income and capital gain net income for preceding years that was not distributed with respect todividend made after such years and on which the Company incurred no U.S. federal income tax. For the taxable year ended December 31, 2016, the Company distributed $7.1 million, or $0.096753 per share, of its taxable income in 2017, prior to the filing of its U.S. federal income tax return for the 2016 taxable year. As a result, the Company was subject to a 4% nondeductible, U.S federal excise tax liability for the 2016 taxable year of approximately $239,000.declaration. For the taxable year ended December 31, 2017, the Company distributed $14.9 million, or $0.187394 per share, of its taxable income in 2018, prior to the filing of its U.S. federal income tax return for ~~the~~its 2017 taxable year. As a result, the Company was subject to a 4% nondeductible, U.S. federal excise tax liability of approximately ~~$392,000.~~$542,000. For the taxable year ended December 31, 2018, the Company distributed $20.5 million, or $0.260865 per share, of its taxable income in 2019, prior to filing of its U.S. federal income tax return for its 2018 taxable year. As a result, the Company was subject to a 4% nondeductible, U.S. federal excise tax liability of approximately $766,000.

The Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes, which provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the Company’s financial statements is the largest benefit or expense that has a greater than 50% likelihood of being realized upon its ultimate settlement with the relevant tax authority. Positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits, if any, 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, on-going analyses of tax laws, regulations and interpretations thereof. Management has analyzed the Company’s tax positions, and has concluded that there were no material uncertain income tax positions through ~~September~~June 30, ~~2018.~~2019. The Company identifies its major tax jurisdiction as the United States, and 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 12 months. Tax returns for the ~~2014~~2015 through 2017 taxable years remain subject to examination by U.S. federal and most state tax authorities.

~~The~~Two of the Company’s wholly owned subsidiaries, HMS Equity Holding and HMS Equity Holding II, have elected to be taxable entities for U.S. tax purposes. HMS Equity Holding and HMS Equity Holding II primarily hold equity investments in portfolio companies which are treated as “pass through” entities for U.S. tax purposes. HMS Equity Holding and HMS Equity Holding II are consolidated for financial reporting purposes, and the portfolio investments held by each entity are included in the condensed consolidated financial statements as portfolio investments recorded at fair value. HMS Equity Holding and HMS Equity Holding II are not consolidated with the Company for U.S. federal income tax purposes and may generate income tax expense, or benefit, and the related tax assets and liabilities, as a result of its ownership of certain portfolio investments. This income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in the Company’s condensed consolidated financial statements.

Listed below is a reconciliation of “Net increase (decrease) in net assets resulting from operations” to taxable income and to total distributions declared to common stockholders for the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017~~2018 (dollars in thousands).

Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017

Net increase in net assets resulting from operations $ 51,559
$ 39,440
Net change in unrealized (appreciation) depreciation (23,955 ) 7,165
Income tax provision (29 ) 139
Pre-tax book loss not consolidated for tax purposes 16,018
755
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates (45 ) 1,526
Estimated taxable income⁽¹⁾
43,548
49,025

Taxable income earned in prior year and carried forward for distribution in current year 15,005
7,238

Taxable income earned prior to period end and carried forward for distribution next period (21,484 ) (20,558 )
Dividend accrued as of period end and paid-in the following period 4,527
4,565


	Nine Months Ended September 30, 2018			Nine Months Ended September 30, 2017			Six Months Ended June 30, 2019			Six Months Ended June 30, 2018

Net increase (decrease) in net assets resulting from operations							$	30,596		$	27,779
Net change in unrealized (appreciation) depreciation							(9,742		)	(9,098		)
Income tax provision							159			197
Pre-tax book loss not consolidated for tax purposes							2,818			8,238
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates							(739		)	(92		)
Estimated taxable income⁽¹⁾							23,092			27,024

Taxable income earned in prior year and carried forward for distribution in current year							20,574			15,005

Taxable income earned prior to period end and carried forward for distribution next period							(20,827		)	(18,907		)
Dividend accrued as of period end and paid-in the following period							4,521			4,536
Taxable income earned to be carried forward	$	(16,957	)	$	(15,993	)	$	(16,306	)	$	(14,371	)

Total distributions accrued or paid to common stockholders	$	41,596		$	40,270		$	27,360		$	27,658


(1)	The Company’s taxable income for each period is an estimate and will not be finally determined until the Company files its tax return for each year. Therefore, the final taxable income, and the taxable income earned in each period and carried forward for distribution in the following period, may be different than this estimate.

The income tax expense, or benefit, and the related tax assets and liabilities generated by HMS Equity Holding and HMS Equity Holding II, if any, are reflected in the Company’s Condensed Consolidated ~~Statement of Operations.~~Financial Statements. For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company recognized a net income tax (benefit) provision of ~~$(29,000)~~$159,000 and ~~$139,000,~~$197,000, respectively, related to deferred taxes (benefit) of ~~$(1.6)~~$0.5 million and ~~$1.5~~$3.9 million, respectively, and other taxes (benefit) of ~~$(29,000)~~$159,000 and ~~$139,000,~~$197,000, respectively, offset by a valuation allowance of ~~$1.6~~$(0.5) million and ~~$(1.5)~~$(3.9) million, respectively. For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the other taxes (benefit) included ~~$(29,000)~~$159,000 and ~~$139,000,~~$197,000, respectively, related to accruals for state and other taxes.

As of ~~September~~June 30, 2019, the cost basis of the Company’s portfolio investments for tax purposes was $1.0 billion, with such investments having an estimated net unrealized depreciation of $5.7 million, composed of gross unrealized appreciation of $48.2 million and gross unrealized depreciation of $53.9 million. As of December 31, 2018, the cost basis of investments for tax purposes was $1.1 billion, with such investments having an estimated net unrealized ~~appreciation~~depreciation of ~~$9.3~~$15.1 million, composed of gross unrealized appreciation of ~~$36.0~~$37.5 million and gross unrealized depreciation of $26.7 million. As of December 31, 2017, the cost basis of investments for tax purposes was $1.0 billion, with such investments having an estimated net unrealized depreciation of $14.9 million, composed of gross unrealized appreciation of $25.2 million and gross unrealized depreciation of $40.1$52.6 million.

The net deferred tax assets at both ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017~~2018 was $0, primarily related to loss carryforwards, timing differences in net unrealized depreciation of portfolio investments, and basis differences of portfolio investments held by HMS Equity Holding and HMS Equity Holding II offset by a valuation allowance. Based on HMS Equity Holding’s and HMS Equity Holding II’s short operating history, management believes it is more likely than not that there will be inadequate profits in HMS Equity Holding and HMS Equity Holding II against which the deferred tax assets can be offset. Accordingly, the Company recorded a full valuation allowance against such deferred tax assets.

The following table sets forth the significant components of net deferred tax assets and liabilities as of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017~~2018 (amounts in thousands):


	September 30, 2018			December 31, 2017			June 30, 2019			December 31, 2018
Deferred tax assets:
Net operating loss carryforwards	$	1,663		$	1,901		$	1,380		$	1,861
Foreign tax credit carryforwards	10			10			10			10
Capital loss carryforwards	9,933			5,390			12,482			10,696
Net basis differences in portfolio investments	—			—			—			—
Net unrealized depreciation of portfolio investments	—			—			—			—
Total deferred tax assets	11,606			7,301			13,872			12,567
Deferred tax liabilities:
Net basis differences in portfolio investments	(1,343		)	(703		)	(2,140		)	(1,540		)
Net unrealized appreciation of portfolio investments	(2,466		)	(426		)	(3,846		)	(3,693		)
Other	—			—			—			—
Total deferred tax liabilities	(3,809		)	(1,129		)	(5,986		)	(5,233		)
Valuation allowance	(7,797		)	(6,172		)	(7,886		)	(7,334		)
Total net deferred tax assets (liabilities)	$	—		$	—		$	—		$	—

On December 22, 2017, the Tax Cuts and Jobs Act (the “TCJA”) was signed into law. The TCJA significantly changed the U.S. federal income tax laws applicable to businesses and their owners. Technical corrections or other amendments to the TCJA or administrative guidance interpreting the TCJA may be forthcoming at any time. Under the TCJA, the corporate income tax rate is reduced to 21%, and the corporate alternative minimum tax was repealed. The reduced corporate income tax rate, which is effective for taxable years beginning after December 31, 2017, apples to income earned by HMS Equity Holding and HMS Equity Holding II.

For federal income tax purposes, the net operating loss carryforwards generated prior to December 31, 2017 expire in various taxable years from 2034 through 2037. Under the TCJA, any net operating losses generated in 2018 and future periods will have

an indefinite carryforward. The net capital loss carryforwards of the Company expire in taxable years 2020 and 2023. The timing and manner in which HMS Equity Holding and HMS Equity Holding II will utilize any net loss carryforwards in such taxable years, or in total, may be limited in the future under the provisions of the Code.

For the years ending December 31, 2018, 2017 ~~2016~~ and ~~2015,~~2016, respectively, the tax characteristics of distributions paid to shareholders were as follows (amounts in thousands):


	Year Ended December 31,												Year Ended December 31,
Tax Characteristics of Distributions	2017				2016				2015				2018				2017				2016

Ordinary income	$	52,473	96.43	%	$	44,848	93.90	%	$	34,085	99.68	%	$	50,274	90.56	%	$	52,473	96.43	%	$	44,848	93.90	%
Capital gain distributions	1,941		3.57		2,913		6.10		110		0.32		5,238		9.44		1,941		3.57		2,913		6.10
Total distributions	$	54,414	100.00	%	$	47,761	100.00	%	$	34,195	100.00	%	$	55,512	100.00	%	$	54,414	100.00	%	$	47,761	100.00	%

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 year. If the Company had determined the tax attributes of its distributions taxable year-to-date as of ~~September~~June 30, ~~2018,~~2019, 100% would be from its current and accumulated earnings and profits. However, there can be no certainty to stockholders that this determination is representative of what the actual tax attributes of the Company’s anticipated fiscal and taxable years ending December 31, ~~2018~~2019 distributions to stockholders will be. The actual tax characteristics of distributions to stockholders will be reported to the Internal Revenue Service and stockholders subject to information reporting shortly after the close of each calendar year on Form 1099-DIV.

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal tax regulations, which may differ from amounts determined in accordance with GAAP and those differences could be material. These book-to-tax differences are either temporary or permanent in nature. Reclassifications due to permanent book-to-tax differences, such as the non-deductible excise tax, have no impact on net assets.

Note 910 – Supplemental Cash Flow Disclosures

Listed below are the supplemental cash flow disclosures for the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017~~2018 (dollars in thousands):


Supplemental Disclosure of Cash Flow Information	Nine Months Ended September 30, 2018		Nine Months Ended September 30, 2017			Six Months Ended June 30, 2019		Six Months Ended June 30, 2018
Cash paid for interest	$	16,764	$	12,296		$	13,073	$	10,502
Cash paid for income taxes	690		358			1,199		601

Supplemental Disclosure of Non-Cash Flow Information
Stockholder distributions declared and unpaid	4,527		4,565			4,521		4,536
Stockholder distributions reinvested	20,550		20,594			12,735		13,819
Change in unpaid deferred offering costs	—		(40		)
Unpaid deferred financing costs	6		25			6		—
Unpaid sales commissions and dealer manager fee	—		251

Note 1011 — Related Party Transactions and Arrangements

Advisory Agreements and Conditional Fee and Expense Reimbursement Waivers

The Company and the Adviser may enter into an agreement pursuant to which the Adviser could pay the Company up to 100% of its operating expenses an “Expense Support Payment”) in order to achieve a reasonable level of expenses relative to its investment income.

The Company and the Advisers entered into a conditional fee waiver agreement (as amended from time to time, the “Conditional Fee Waiver Agreement”), pursuant to which the Advisers could waive certain fees through December 31, 2015 upon the occurrence of any event that, in the Advisers’ sole discretion, caused such waivers to be deemed necessary.

The Company and the Advisers entered into conditional income incentive fee waiver agreements (the “2016-2018 Conditional Income Incentive Fee Waiver Agreements”), most recently on ~~October 31, 2018,~~March 4, 2019, pursuant to which, for a period from January 1,

2016 through ~~September 30,~~December 31, 2018, the Advisers would waive payments in respect of the “subordinated incentive fee on income,” as such term is defined in the Investment Advisory Agreement, upon the occurrence of any event that, in the Advisers’ sole discretion, causes such waiver to be deemed necessary. The 2016-2018 Conditional Income Incentive Fee Waiver Agreements may require the Company to repay ~~previously waived reimbursement of Expense Support Payments or~~ base management fees or incentive fees previously waived by the Advisers under certain circumstances and to the extent eligible for repayment.

Previously waived fees ~~and Expense Support Payments~~ are potentially subject to repayment by the Company, if at all, within a period not to exceed three years from the date of each respective fee ~~waiver or Expense Support Payment.~~waiver. Thus, in any quarter where a surplus exists and the conditions described below are satisfied, the surplus will be available, subject to approval of the Company’s board of directors, to reimburse waived ~~fees and Expense Support Payments as follows:~~


1.	~~First, to reimburse Expense Support Payments, beginning with the earliest expenses eligible for reimbursement; and~~


2.	~~Second, to reimburse all waived fees, beginning with the earliest fees eligible for reimbursement.~~

fees. Reimbursement of previously waived fees will only be permitted ~~with the approval of the Company’s board of directors and~~ if the operating expense ratio is equal to or less than the operating expense ratio at the time the corresponding fees were waived ~~or Expense Support Payments were made~~ and if the annualized rate of regular cash distributions to stockholders is equal to or greater than the annualized rate of the regular cash distributions at the time the corresponding fees were waived.

For the three months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company incurred base management fees of approximately ~~$5.9~~$5.6 million and ~~$5.6~~$5.7 million, respectively, and ~~the Advisers did not waive any base management~~subordinated incentive fees ~~in either period.~~on income of $1.3 million and $0, respectively. For each of the three months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company did not incur any capital gains incentive ~~fees in either period, and incurred subordinated incentive fees on income~~fees. For each of ~~approximately $3.2 million and $0, respectively, all of which were waived by~~ the ~~Advisers.~~

~~For the nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company incurred base management fees of approximately ~~$17.3~~$11.4 million and ~~$16.1~~subordinated incentive fees on income of $2.7 million ~~respectively,~~ and $0.0 million, respectively. For each of the ~~Advisers did not waive any base management fees in either period. For the nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company did not incur any capital gains incentive ~~fees in either period, and incurred subordinated incentive fees on income of approximately $3.4 million and $2.3 million, respectively, all of which were waived by the Advisers.~~fees.

For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company did not record an accrual for any previously waived fees. Any future reimbursement of previously waived fees to the Advisers will not be accrued until the reimbursement of the waived fees becomes probable and estimable, which will be upon approval of the Company’s board of directors. To date, none of the previously waived fees has been approved by the Company’s board of directors for reimbursement.

The table below presents the fees waived by the Advisers and the timing of potential reimbursement of waived fees (dollars in thousands). Previously waived fees will only be reimbursed with the approval of the Company’s board of directors and if the “Operating Expense Ratio” (as described in footnote 3 to the table below) is equal to or less than the Company’s operating expense ratio at the time the corresponding fees were waived and if the annualized rate of the Company’s regular cash distributions to stockholders is equal to or greater than the annualized rate of the Company’s regular cash distributions at the time the corresponding fees were waived.

Management Fee⁽¹⁾

Subordinated Incentive Fee⁽¹⁾

Capital Gain Incentive Fee ⁽¹⁾

Expense Support ⁽¹⁾

Quarter Ended Waivers
Repaid to Adviser ₍₂₎
Waivers
Repaid to Adviser₍₂₎
Waivers
Repaid to Adviser₍₂₎
Payments
Repaid to Adviser ₍₂₎

Operating Expense Ratio ⁽³⁾
Annualized Distribution Rate ⁽⁴⁾
Eligible to be Repaid Through ⁽⁵⁾
12/31/2015 $ —
$ —
$ 1,159
$ —
$ —
$ —
$ —
$ —
2.27% $0.70 12/31/2018
3/31/2016 $ —
$ —
$ 493
$ —
$ —
$ —
$ —
$ —
1.83% $0.70 3/31/2019
6/30/2016 $ —
$ —
$ —
$ —
$ —
$ —
$ —
$ —
1.76% $0.70 6/30/2019
9/30/2016 $ —
$ —
$ —
$ —
$ —
$ —
$ —
$ —
1.73% $0.70 9/30/2019
12/31/2016 $ —
$ —
$ 1,196
$ —
$ —
$ —
$ —
$ —
1.68% $0.70 12/31/2019
3/31/2017 $ —
$ —
$ 1,495
$ —
$ —
$ —
$ —
$ —
1.68% $0.70 3/31/2020
6/30/2017 $ —
$ —
$ 823
$ —
$ —
$ —
$ —
$ —
1.67% $0.70 6/30/2020
9/30/2017 $ —
$ —
$ —
$ —
$ —
$ —
$ —
$ —
1.91% $0.70 9/30/2020


	Management Fee⁽¹⁾				Subordinated Incentive Fee⁽¹⁾				Capital Gain Incentive Fee ⁽¹⁾				Expense Support ⁽¹⁾							Management Fee⁽¹⁾				Subordinated Incentive Fee⁽¹⁾
Quarter Ended	Waivers		Repaid to Adviser ₍₂₎		Waivers		Repaid to Adviser₍₂₎		Waivers		Repaid to Adviser₍₂₎		Payments		Repaid to Adviser ₍₂₎		Operating Expense Ratio ⁽³⁾	Annualized Distribution Rate ⁽⁴⁾	Eligible to be Repaid Through ⁽⁵⁾	Waivers		Repaid to Adviser⁽²⁾		Waivers		Repaid to Adviser⁽²⁾		Operating Expense Ratio ⁽³⁾	Annualized Distribution Rate ⁽⁴⁾	Eligible to be Repaid Through ⁽⁵⁾
9/30/2016																				$	—	$	—	$	—	$	—	1.73%	$0.70	9/30/2019
12/31/2016																				$	—	$	—	$	26	$	—	1.68%	$0.70	12/31/2019
3/31/2017																				$	—	$	—	$	1,396	$	—	1.68%	$0.70	3/31/2020
6/30/2017																				$	—	$	—	$	246	$	—	1.67%	$0.70	6/30/2020
9/30/2017																				$	—	$	—	$	—	$	—	1.91%	$0.70	9/30/2020
12/31/2017	$	—	$	—	$	711	$	—	$	—	$	—	$	—	$	—	1.82%	$0.70	12/31/2020	$	—	$	—	$	—	$	—	1.82%	$0.70	12/31/2020
3/31/2018	$	—	$	—	$	15	$	—	$	—	$	—	$	—	$	—	1.80%	$0.70	3/31/2021	$	—	$	—	$	—	$	—	1.80%	$0.70	3/31/2021
6/30/2018	$	—	$	—	$	139	$	—	$	—	$	—	$	—	$	—	1.96%	$0.70	6/30/2021	$	—	$	—	$	—	$	—	1.96%	$0.70	6/30/2021
9/30/2018	$	—	$	—	$	3,231	$	—	$	—	$	—	$	—	$	—	2.01%	$0.70	9/30/2021	$	—	$	—	$	2,535	$	—	2.01%	$0.70	9/30/2021
12/31/2018																				$	—	$	—	$	798	$	—	2.32%	$0.70	12/31/2021


(1)	Fees waived pursuant to ~~the Conditional Fee Waiver Agreement and~~ the 2016-2018 Conditional Income Incentive Fee Waiver Agreements.

(2)

Subject to the approval of the Company’s board of directors, in future periods previously waived fees may be paid to the Advisers, if the Company’s cumulative net increase in net assets resulting from operations exceeds the amount of cumulative distributions paid to stockholders. The previously waived fees are potentially subject to repayment by the Company, if at all, within a period not to exceed three years from the date of each respective fee waiver. To date, none of the previously waived fees ~~and Expense Support Payments~~ have been approved for reimbursement by the Company’s board of directors.


(3)	The “Operating Expense Ratio” is calculated on a quarterly basis as a percentage of average net assets and includes all expenses borne by the Company, except for base management and incentive fees and administrative expenses waived by the Advisers and organizational and offering expenses.


(4)	“Annualized Distribution Rate” equals $0.00191781 per share, per day based on the distributions declared by the Company’s board of directors.


(5)	Prior to ~~December 31, 2015,~~June 30, 2016, the Advisers waived total management fees of $2.8 million, total subordinated incentive fees of ~~$2.0~~$2.5 million and total capital gain incentive fees of $8,000. Due to the passage of time, such waived fees are not eligible for repayment under the applicable fee waiver agreements.

Pursuant to the Investment Advisory Agreement and Sub-Advisory Agreement, the Company is required to pay or reimburse the Advisers for administrative services expenses, which include all costs and expenses related to the Company’s day-to-day administration and management not related to advisory services, whether such administrative services were performed by a third

party service provider or affiliates of the Advisers (“Internal Administrative Services”). The Advisers do not earn any profit under their provision of administrative services to the Company. For the three months ended ~~September~~June 30, ~~2018~~2019 and 2017, the Company incurred, and the Advisers waived the reimbursement of, Internal Administrative Services expenses of approximately $623,000 and $694,000, respectively. For the nine months ended September 30, 2018, ~~and 2017,~~ the Company incurred, and the Advisers waived the reimbursements of, Internal Administrative Services expenses of approximately ~~$2.0~~$740,000 and $617,000, respectively. For the six months ended June 30, 2019 and 2018, the Company incurred, and the Advisers waived the reimbursements of, Internal Administrative Services expenses of approximately $1.5 million and ~~$2.2~~$1.4 million, respectively. The Company and the Advisers entered into an expense support and conditional reimbursement agreement, as amended from time to time, which extends the period for waiver of reimbursement of Internal Administrative Services expenses accrued pursuant to the Investment Advisory Agreement and the Sub-Advisory Agreement through ~~December 31, 2018.~~June 30, 2019. Since inception, the Advisers waived the reimbursement of total Internal Administrative Services expenses of ~~$12.4~~$14.5 million. Waived Internal Administrative Services expenses are not subject to future reimbursement.

The table below outlines fees incurred and expense reimbursements payable to the Adviser, the Sub-Adviser and their respective affiliates for the three and ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017~~2018 and amounts unpaid as of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017~~2018 (dollars in thousands).


	Incurred				Incurred				Unpaid as of				Incurred				Incurred				Unpaid as of
	Three Months Ended September 30,				Nine Months Ended September 30,				September 30, 2018		December 31, 2017		Three Months Ended June 30,				Six Months Ended June 30,				June 30, 2019		December 31, 2018
Type and Recipient	2018		2017		2018		2017		September 30, 2018		December 31, 2017		2019		2018		2019		2018		June 30, 2019		December 31, 2018
Incentive Fees on Income - the Adviser, Sub-Adviser⁽¹⁾	$	—	$	—	$	—	$	—	$	—	$	—
Offering Costs - the Adviser, Sub-Adviser	101		272		308		1,000		—		—		$	96	$	104	$	191	$	207	$	—	$	—
Other ⁽²⁾ - the Adviser	155		81		488		551		38		59		177		157		381		333		54		57
Selling Commissions - Dealer Manager	—		501		—		2,368		—		—		—		—		—		—		—		—
Dealer Manager Fee - Dealer Manager	—		307		—		1,307		—		—		—		—		—		—		—		—
Due to Affiliates									$	38	$	59									$	54	$	57

Base Management Fees- the Adviser, Sub-Adviser	$	5,904	$	5,648	$	17,335	$	16,101	$	5,904	$	5,682	5,633		5,737		11,359		11,431		$	5,633	$	5,854
Incentive Fees on Income - the Adviser, Sub-Adviser⁽¹⁾													1,331		—		2,730		—		1,331		—
Base Management and Incentive Fees Payable																					$	6,964	$	5,854


(1)	Net of amounts waived by the Advisers.


(2)	Includes amounts the Adviser paid on behalf of the Company such as general and administrative services expenses.

Offering Costs

In accordance with the Investment Advisory Agreement and the Sub-Advisory Agreement, the Company reimburses the Advisers for any offering costs that are paid on the Company’s behalf, which consist of, among other costs, actual legal, accounting, bona fide out-of-pocket itemized and detailed due diligence costs, printing, filing fees, transfer agent costs, postage, escrow fees, advertising and sales literature and other costs incurred in connection with an offering of the Company including the Company’s distribution reinvestment plan. Pursuant to the terms of the Investment Advisory Agreement and the Sub-Advisory Agreement,

the Company expects to reimburse the Advisers for such costs incurred on the Company’s behalf on a monthly basis, up to a maximum aggregate amount of 1.5% of the gross stock offering proceeds. The Advisers are responsible for the payment of offering costs to the extent they exceed 1.5% of the aggregate gross stock offering proceeds.

As of ~~September~~June 30, ~~2018,~~2019, the Company has reimbursed the Advisers approximately ~~$12.1~~$12.4 million since inception for offering costs. As of ~~September~~June 30, ~~2018,~~2019, the Advisers carried a balance of approximately ~~$1.1 million~~$908,000 for offering costs incurred on the Company’s behalf, net of reimbursement payments from the Company.

Note 1112 – Share Repurchase Plan

Since inception of the share repurchase program in 2015, the Company has funded the repurchase of ~~$64.6~~$84.2 million in shares of common stock. For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the Company funded ~~$27.6~~$13.0 million and ~~$14.0~~$19.6 million, respectively, for shares of common stock tendered for repurchase under the plan approved by the board of directors. ~~Since inception of the share repurchase program, the Company has funded all redemption requests validly tendered and not withdrawn.~~

For the Quarter Ended Repurchase Date Shares Repurchased Percentage of Shares Tendered that were Repurchased
Repurchase Price
per Share
Aggregate Consideration for Repurchased Shares
March 31, 2018 March 22, 2018 1,147,067.15 100% $ 8.20
$ 9,405,951
June 30, 2018 May 31, 2018 1,242,890.47 100% $ 8.17
$ 10,154,415
September 30, 2018 August 31, 2018 / September 12, 2018 / October 25, 2018 982,248.25 100% $ 8.15
$ 8,005,323



For the Quarter Ended	Repurchase Date	Shares Repurchased	Percentage of Shares Tendered that were Repurchased	Repurchase Price per Share		Aggregate Consideration for Repurchased Shares
March 31, 2019	February 28, 2019	820,174.35	56.1%	$	7.99	$	6,553,193
June 30, 2019	May 31, 2019	803,239.68	46.1%	$	7.98	$	6,409,850

~~On August 10, 2018, the Company’s board of directors determined that it was desirable and in the best interest of the Company~~

to modify the manner in which the amount of shares to be repurchased pursuant to the Company’s share repurchase program during each calendar quarter is calculated. Beginning with the Company’s tender offer in its fourth fiscal quarter of 2018, the amount of shares of the Company’s common stock to be repurchased during any calendar quarter will be equal to the lesser of (i) the number of shares of common stock the Company can repurchase with the proceeds it received from the issuance of common stock under the Company’s distribution reinvestment plan during the prior calendar quarter or (ii) 2.5% of the weighted average number of shares of common stock outstanding in the prior four calendar quarters. All other provisions of the Company’s share repurchase program remained unchanged.

Note 1213 – Commitments and Contingencies

As of ~~September~~June 30, 2019, the Company had a total of approximately $38.4 million in outstanding commitments comprising (i) 42 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. The Company recognized unrealized appreciation of approximately $306,000 on the outstanding unfunded loan commitments and no unrealized appreciation or depreciation on the outstanding unfunded capital commitments during the six months ended June 30, 2019. As of December 31, 2018, the Company had a total of approximately ~~$39.9~~$62.5 million in outstanding commitments comprising (i) 3336 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. The Company recognized unrealized depreciation of approximately $212,000 on the outstanding unfunded loan commitments and no unrealized appreciation or depreciation on the outstanding unfunded capital commitments during the nine months ended September 30, 2018. As of December 31, 2017, the Company had a total of approximately $45.4 million in outstanding commitments comprising (i) 28 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. The Company recognized unrealized appreciation of $14,000$132,000 on the outstanding unfunded loan commitments and no unrealized appreciation or depreciation on the outstanding unfunded capital commitments during the year ended December 31, ~~2017.~~2018.


	Commitments and Contingencies				Commitments and Contingencies
	(dollars in thousands)				(dollars in thousands)
	September 30, 2018		December 31, 2017		June 30, 2019		December 31, 2018
Unfunded Loan Commitments
Adams Publishing Group, LLC	$	3,035	$	—	$	762	$	1,735
Aethon United BR LP					938		—
American Nuts, LLC	1,266		—		281		1,266
Apex Linen Services, Inc.	403		403		—		403
Arcus Hunting, LLC	60		976		530		904
ASC Ortho Management Company, LLC	750		—		750		750
BarFly Ventures, LLC	245		613		—		123
BBB Tank Services	37		—		40		200
BigName Holdings, LLC	29		101		29		29
Boccella Precast Products, LLC	360		500		500		500
CDHA Management, LLC	—		2,343
Centre Technologies Holdings, LLC					600		—
Chamberlin HoldCo, LLC	400		—		400		400
Charps, LLC					—		1,000
Chisholm Energy Holdings, LLC					1,429		—
Clad-Rex Steel, LLC					—		100
CTVSH, PLLC					200		200
Direct Marketing Solutions, Inc.					400		400
DTE Enterprises, LLC					750		750
Dynamic Communities, LLC					250		250
Gamber-Johnson Holdings, LLC					300		300
GRT Rubber Technologies, LLC					2,393		4,125
Guerdon Modular Holdings, Inc.					284		400
Hawk Ridge Systems, LLC					—		400
HDC/HW Intermediate Holdings, Inc.					118		180
Hoover Group, Inc.					550		2,375
HW Temps LLC					200		200
Implus Footcare, LLC					—		44
Independent Pet Partners Intermediate Holdings, LLC					10,593		22,244
Joerns Healthcare, LLC					944		—
KMC Acquisition, LLC					500		500
Laredo Energy VI, LP					1,250		—
Market Force Information, Inc.					23		350
Meisler Operating, LLC					160		400
Mystic Logistics Holdings, LLC					200		200
New Era Technology, Inc.					—		479
NexRev, LLC					1,000		1,000
NuStep, LLC					300		300
SI East , LLC					2,500		2,500
Tedder Acquisition, LLC					100		180
Trantech Radiator Topco, LLC					400		—
Volusion LLC					—		1,961
Wireless Vision Holdings, LLC					—		693

Commitments and Contingencies
(dollars in thousands)
September 30, 2018 December 31, 2017
Unfunded Loan Commitments

Charps, LLC $ 600
$ 1,000
Clad-Rex Steel, LLC 100

100
CTVSH, PLLC 200

200
Datacom, LLC —
25
Direct Marketing Solutions, Inc. 400

—
DTE Enterprises, LLC 750
—
Dynamic Communities, LLC 250
—
Felix Investments Holdings II LLC —

1,667
Gamber-Johnson Holdings, LLC 300
300
GST Autoleather Inc. —
1,281
Guerdon Modular Holdings, Inc. 400
400
Hawk Ridge Systems, LLC 400
400
Hojeij Branded Foods, Inc. 1,588
1,923
Hoover Group, Inc. 2,113
—
Hostway Corporation —

7
HW Temps LLC 200
200
Implus Footcare, LLC 42
—
LaMi Products, LLC —
294
Market Force Information, Inc. 300

400
Meisler Operating, LLC 400

400
Mystic Logistics Holdings, LLC 200
200
New Era Technology, Inc. 479
—
NexRev, LLC 1,000

—
NNE Partners, LLC 2,042

5,542
NuStep, LLC 300

300
Permian Holdco 2, Inc. —
97
PPC/Shift, LLC —
500
Resolute Industrial LLC —

5,750
SI East , LLC 2,500
—
Volusion LLC 1,961
—
Wireless Vision Holdings, LLC 2,100

2,084
Unfunded Capital Commitments
Brightwood Capital Fund III, LP 1,000
1,000
Brightwood Capital Fund IV, LP 8,000
9,000
Copper Trail Energy Fund I LP 1,754
2,500
Freeport Financial Funds 3,942
4,941
Total $ 39,906
$ 45,447



	Commitments and Contingencies
	(dollars in thousands)
	June 30, 2019		December 31, 2018
Unfunded Capital Commitments
Brightwood Capital Fund III, LP	$	1,080	$	1,000
Brightwood Capital Fund IV, LP	3,000		8,000
Copper Trail Energy Fund I LP	2,689		1,754
Freeport Financial Funds	1,945		3,942
Total	$	38,388	$	62,537

Note 1314 – Subsequent Events

On ~~October 10, 2018,~~July 8, 2019, the Company filed a tender offer statement on Schedule TO with the SEC to commence an offer by the Company to purchase, as approved by its board of directors, an estimated ~~825,530.42~~797,922.06 shares of the Company’s issued and outstanding common stock ~~par value $0.001 per share,~~ up to approximately ~~$6.7~~$6.4 million. The offer is for cash at a purchase price equal to the NAV per share to be determined within 48 hours of the repurchase date.

On October 31, 2018, the Company, the Adviser and the Sub-Adviser entered into a conditional income incentive fee agreement (the “Third Quarter 2018 Fee Waiver Agreement”), pursuant to which, for a period from July 1, 2018 through September 30, 2018, the Advisers would waive payments in respect of the “subordinated incentive fee on income,” as such term is defined in the Investment Advisory Agreement, upon the occurrence of any event that, in the Advisers’ sole discretion, causes such waiver to be deemed necessary. The Third Quarter 2018 Fee Waiver Agreement may require the Company to repay previously waived Expense Support Payments or waived base management fees or incentive fees under certain circumstances. The previously waived fees are potentially subject to repayment by the Company, if at all, within a period not to exceed three years from the date of each respective waiver.

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

The following discussion is based on the condensed consolidated financial statements as of ~~September~~June 30, ~~2018~~2019 (unaudited) and December 31, ~~2017~~2018 and for the three and ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017.~~2018. Amounts as of December 31, ~~2017~~2018 included in the unaudited condensed consolidated financial statements have been derived from the Company’s audited consolidated financial statements as of that date. This information should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the notes thereto, as well as the audited consolidated financial statements, notes and management’s discussion and analysis of financial condition and results of operations included in our Annual Report on Form 10-K (as amended) for the year ended December 31, ~~2017.~~2018. Capitalized terms used in this Item 2 have the same meaning as in the accompanying condensed consolidated financial statements in Item 1 unless otherwise defined in this Report.

We refer to HMS Income Fund, Inc. as the “Company,” and the use of “we,” “our,” “us” or similar pronouns in this Report refers to HMS Income Fund, Inc.

Forward-Looking Statements

Some of the statements in this Report constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this Report may include statements as to:

our future operating results;

our business prospects and the prospects of our current and prospective portfolio companies;

the impact of the investments that we expect to make;

the ability of our portfolio companies to achieve their objectives;

our expected financings and investments;

the adequacy of our cash resources and working capital;

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

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 impact of increased competition;

our contractual arrangements and relationships with third parties;

the dependence of our future success on the general economy, including general economic trends, and its impact on the industries in which we invest;

the relative and absolute performance of our investment adviser, HMS Adviser LP (the “Adviser”), a Texas limited partnership, including in identifying suitable investments for us;

our ability to make distributions to our stockholders;

the effects of applicable legislation and regulations and changes thereto; and

the impact of future acquisitions and divestitures.

In addition, words such as “anticipate,” “believe,” “expect” and “intend” indicate a forward-looking statement, although not all forward-looking statements include these words. The forward-looking statements contained in this Report involve risks and uncertainties.

Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Part II-Item 1A. Risk Factors” and elsewhere in this Report and set forth in our annual report on Form 10-K (as amended) for the year ended December ~~31, 2017 and our Quarterly Report on Form 10-Q for the quarter ended March~~ 31, 2018. Other factors that could cause actual results to differ materially include:

changes in the economy;

risks associated with possible disruption in our operations or the economy generally; and

future changes in laws or regulations and conditions in our operating areas.

We have based the forward-looking statements included in this Report on information available to us on the date of this Report. Except as required by the federal securities laws, we assume no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the Securities and Exchange Commission (the “SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The forward-looking statements and projections contained in this Report are excluded from the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

OVERVIEW

We are a specialty finance company sponsored by Hines Interests Limited Partnership (“Hines”) that makes debt and equity investments in middle market (“Middle Market”) companies, which we define as companies with annual revenues generally between $10 million and $3 billion and in lower middle market (“LMM”) companies, which we define as companies with annual revenues generally between $10 million and $150 million. We are an externally managed, non-diversified closed-end 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”). We are, therefore, required to comply with certain regulatory requirements. We have elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”), under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

Our primary investment objective is to generate current income through debt and equity investments. A secondary objective is to generate long-term capital appreciation through equity and equity-related investments, including warrants, convertible securities and other rights to acquire equity securities. Our portfolio strategy is to invest primarily in illiquid debt and equity securities issued by LMM companies and Middle Market companies in private placements and negotiated transactions, which are traded in private over-the-counter markets for institutional investors. We will also invest in, and a significant portion of our assets are invested in, customized direct secured and unsecured loans to and equity securities of LMM companies, referred to as LMM securities. Typically, our investments in LMM companies require us to co-invest with Main Street Capital Corporation, a New York Stock Exchange listed BDC (“Main Street”), and/or its affiliates as a result of our sub-advisory relationship described below. We categorize some of our investments in LMM companies and Middle Market companies as private loan (“Private Loan”) portfolio investments. Private Loan investments, often referred to in the debt markets as “club deals,” are investments, generally in debt instruments, that we originate on a collaborative basis with other investment funds. Private Loan investments are typically similar in size, structure, terms and conditions to investments we hold in our LMM portfolio and Middle Market portfolio. Our portfolio also includes other portfolio (“Other Portfolio”) investments primarily consisting of ~~our investment in HMS-ORIX SLF LLC (“HMS-ORIX”) and~~ investments managed by third parties, which differ from the typical profiles for our other types of investments.

We previously registered for sale up to 150,000,000 shares of common stock pursuant to a registration statement on Form N-2 (File No. 333-178548) which was initially declared effective by the SEC on June 4, 2012 (the “Initial Offering”). The Initial Offering terminated on December 1, 2015. We raised approximately $601.2 million in the Initial Offering, including proceeds from the dividend reinvestment plan of approximately $22.0 million. We also registered for sale up to $1,500,000,000 worth of shares of common stock (the “Offering”) pursuant to a new registration statement on Form N-2 (File No. 333-204659), as amended. With the approval of our board of directors, we closed the Offering to new investors effective September 30, 2017. Through ~~September~~June 30, ~~2018,~~2019, we raised approximately ~~$204.7~~$224.0 million in the Offering, including proceeds from the distribution reinvestment plan of approximately ~~$73.0~~$92.2 million.

Our business is managed by the Adviser, an affiliate of Hines, under an Investment Advisory and Administrative Services Agreement dated May 31, 2012 (as amended the “Investment Advisory Agreement”). We and the Adviser have retained MSC Adviser I, LLC (the “Sub-Adviser”), a wholly owned subsidiary of Main Street, as our investment sub-adviser pursuant to an Investment Sub-Advisory Agreement (the “Sub-Advisory Agreement”) to identify, evaluate, negotiate and structure prospective investments, make investment and portfolio management recommendations for approval by the Adviser, monitor our investment portfolio and provide certain ongoing administrative services to the Adviser. The Adviser and the Sub-Adviser are collectively referred to as the “Advisers,” and each is registered under the Investment Advisers Act of 1940, as amended. Upon the execution of the Sub-Advisory Agreement, Main Street became our affiliate. Our board of directors most recently reapproved the Investment Advisory Agreement and the Sub-Advisory Agreement on May ~~10, 2018.~~23, 2019. We have engaged Hines Securities, Inc. (the “Dealer Manager”), an affiliate of the Adviser, to serve as the Dealer Manager for our offerings, if any.

As part of our Other Portfolio investments, we co-invest in broadly-syndicated loans with ORIX Funds Corp. (“Orix”) through our investment in HMS-ORIX, which is organized as a Delaware limited liability company. Pursuant to the terms of the limited liability company agreement and through representation on the HMS-ORIX Board of Managers, we and Orix each have 50% voting control of HMS-ORIX and together will agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. We do not operationally control HMS-ORIX, and, accordingly, we do not consolidate the operations of HMS-ORIX within our consolidated financial statements.

As a BDC, we are subject to certain regulatory restrictions in making our investments, including limitations on our ability to co-invest with certain affiliates, including Main Street. However, we received exemptive relief from the SEC, that permits us, subject to certain conditions, to co-invest with Main Street and/or its affiliates in certain transactions originated by Main Street and/or our Advisers. The exemptive relief permits us, and certain of our directly or indirectly wholly owned subsidiaries on one hand, and Main Street and or/certain of its affiliates on the other hand, to co-invest in the same investment opportunities where such investment may otherwise be prohibited under Section 57(a)(4) of the 1940 Act. In addition, we may continue to co-invest with Main Street

and/or its affiliates in syndicated deals and secondary loan market purchases in accordance with applicable regulatory guidance or interpretations where price is the only negotiated point.

As of ~~September~~June 30, ~~2018,~~2019, we had investments in 5041 Middle Market debt investments, 4553 Private Loan debt investments, 3739 LMM debt investments, 3540 LMM equity investments, six Middle Market equity investments, 1519 Private Loan equity investments and ~~eight~~nine Other Portfolio investments with an aggregate fair value of approximately ~~$1,130.3~~$1,068.2 million, a cost basis of approximately ~~$1,121.0~~$1,073.9 million and a weighted average effective annual yield of approximately ~~9.2%~~9.4%. The weighted average annual yield was calculated using the effective interest rates for all investments at ~~September~~June 30, ~~2018,~~2019, including accretion of original issue discount and amortization

of premium to par value, the amortization of fees received in connection with transactions, and assumes zero yield for investments on non-accrual status. Approximately ~~80.7%~~80.3% and ~~9.4%~~7.3% of our total portfolio investments (at fair value, excluding our Other Portfolio investments) were secured by first priority liens and second priority liens, respectively, on portfolio company assets with the remainder in unsecured debt investments and equity investments.

The level of new portfolio investment activity will fluctuate from period to period based upon our view of the current economic fundamentals, our ability to identify new investment opportunities that meet our investment criteria and our ability to close on the identified transactions. The level of new investment activity and associated interest and fee income will directly impact future investment income. While we intend to grow our investment income over the long-term, our operating results may be more limited during depressed economic periods. However, we intend to appropriately manage our cost structure and liquidity position based on applicable economic conditions and our investment outlook. The level of realized gains or ~~losses~~(losses) and unrealized appreciation or ~~depreciation~~(depreciation) will also fluctuate depending upon portfolio activity and the performance of our individual portfolio companies. The changes in realized gains and ~~losses~~(losses) and unrealized appreciation or ~~depreciation~~(depreciation) could have a material impact on our operating results.

Investment Income

We have generated, and plan to continue to generate, investment income primarily in the form of interest on the debt securities that we hold, dividends and other distributions with respect to any equity interests that we hold and capital gains, if any, on our investments. In addition, we may generate revenue in the form of commitment, origination, structuring or diligence fees, monitoring fees, and possibly consulting fees and performance-based fees. All such fees will be generated in connection with our investments and recognized as earned or as additional yield over the life of the debt investment. To date our investment income has been interest income on debt investments, accretion of original issue discounts, dividend income, amortization of premiums and fees received from transactions, net realized ~~appreciation (depreciation)~~gain (loss) on investments and net change in unrealized appreciation (depreciation). on investments.

Expenses

On both a short-term and long-term basis, our primary use of funds will be investments in portfolio companies and cash distributions to our stockholders. Our primary operating expenses will be debt service payments, general and administrative expenses, and payment of advisory fees under the Investment Advisory Agreement. The investment advisory fees paid to our Adviser (and the fees paid by our Adviser to our Sub-Adviser pursuant to the Sub-Advisory Agreement) will compensate our Advisers for their work in identifying, evaluating, negotiating, executing, monitoring and servicing our investments.

We bear all other expenses of our operations and transactions, including fees and expenses relating to:



●		corporate and organizational expenses relating to offerings of our common stock, subject to certain limitations;
●		the cost of calculating our net asset value (“NAV”), including the cost of any third-party valuation services;
●		the cost of effecting sales and repurchases of shares of our common stock and other securities;
●		fees payable to third parties relating to, or associated with, monitoring our financial and legal affairs, making investments, and valuing investments, including fees and expenses associated with performing due diligence reviews of prospective investments;
●		interest payable on debt, if any, including any hedging costs;
●		investment advisory fees;
●		transfer agent and custodial fees;
●		fees and expenses associated with marketing efforts;
●		federal and state registration fees;
●		federal, state and local taxes;
●		independent directors’ fees and expenses, including travel expenses;
●		costs of director and stockholder meetings, proxy statements, stockholders’ reports and notices;
●		cost of fidelity bond, directors and officers/errors and omissions liability insurance and other insurance premiums;



●		direct costs such as printing of stockholder reports and advertising or sales materials, mailing, long distance telephone, and staff;
●		fees and expenses associated with independent audits and outside legal costs, including compliance with the Sarbanes-Oxley Act of 2002, the 1940 Act, and other applicable federal and state securities laws and regulations;
●		costs associated with our reporting and compliance obligations under the 1940 Act and other applicable federal and state securities laws and regulations;
●		brokerage commissions for our investments;



●		all other expenses incurred by our Advisers in performing their obligations, subject to the limitations included in the Investment Advisory Agreement and Sub-Advisory Agreement; and
●		all other expenses incurred by us or any administrator in connection with administering our business, including payments under any administration agreement that will be based upon our allocable portion of overhead and other expenses incurred by any administrator in performing its obligations under any proposed administration agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer and Chief Financial Officer and their respective staffs.

During periods of asset growth, we expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets and increase during periods of asset declines.

Base Management Fee, Incentive Fee Waiver Agreements and Administrative Services Expense Reimbursement Waiver Agreements

From time to time, our Advisers may waive certain fees and expense reimbursements accrued under the Investment Advisory Agreement and the Sub-Advisory Agreement, as applicable. Under certain circumstances, we may reimburse such waived fees within three years from the date of each respective fee reimbursement waiver. See Note ~~10 -~~11 — Related Party Transactions and Arrangements -— Advisory Agreements and Conditional Fee and Expense Reimbursement Waivers to our condensed consolidated financial statements included elsewhere in this Report for additional information on our fee and expense reimbursement waivers.

CRITICAL ACCOUNTING POLICIES

Each of our critical accounting policies involves the use of estimates that require management to make assumptions that are subjective in nature. Management relies on its experience, collects historical and current market data, and analyzes these assumptions in order to arrive at what it believes to be reasonable estimates. In addition, application of these accounting policies involves the exercise of judgments regarding assumptions as to future uncertainties. Actual results could materially differ from these estimates. A disclosure of our critical accounting policies is included in our Annual Report on Form 10-K (as amended) for the year ended December 31, ~~2017~~2018 in Management’s Discussion and Analysis of Financial Condition and Results of Operations. There have been no changes to our critical accounting policies during ~~2018,~~2019, except to the extent described below.

Basis of Presentation and Consolidation

Our condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and accounting principles generally accepted in the United States of America and include the accounts of our wholly owned consolidated subsidiaries: HMS Funding I LLC (“HMS Funding”), HMS Equity Holding, LLC (“HMS Equity Holding”) ~~and~~, HMS Equity Holding II, Inc. (“HMS Equity Holding II”), HMS California Holdings LP (“HMS California Holdings”) and HMS California Holdings GP LLC (“HMS California Holdings GP”). All intercompany accounts and transactions have been eliminated in consolidation. Under ~~the 1940 Act rules, regulations pursuant to Articles 6, 10 and 12 of Regulation S-X and~~ Topic 946, Financial Services - Investment Companies of the Accounting Standards Codification, as amended (the “ASC”), of the Financial Accounting Standards Board (“FASB”), we are precluded from consolidating portfolio company investments, including those in which we have a controlling interest, unless the portfolio company is a wholly owned investment company. An exception to this general principle occurs if we own a controlled operating company whose purpose is to provide services to us such as an investment adviser or transfer agent. None of our investments qualify for this exception. Therefore, our portfolio company investments, including those in which we have a controlling interest, are carried on the Consolidated Balance Sheet at fair value with changes to fair value recognized as “Net Change in Unrealized Appreciation (Depreciation)” on Investments” on the Consolidated Statements of Operations until the investment is realized, usually upon exit, resulting in any gain or loss on exit being recognized as a realized gain or loss. However, in the event that any controlled subsidiary exceeds the tests of significance set forth in Rules 3-09 or 4-08(g) of Regulation S-X, we will include required financial information for such subsidiary in the notes or as an attachment to our condensed consolidated financial statements.

PORTFOLIO INVESTMENT COMPOSITION

Our Middle Market portfolio investments primarily consist of direct or secondary purchases of interest-bearing debt securities in companies that are generally larger in size than the LMM companies included in our LMM portfolio. While our Middle Market debt investments are generally secured by a first priority lien, ~~16.9%~~13.7% of the fair value of our Middle Market portfolio, as of ~~September~~June 30, ~~2018,~~2019, is secured by second priority liens.

As of ~~September~~June 30, ~~2018,~~2019, LMM portfolio consists of debt investments secured by a first priority lien ~~(63.5%~~(59.3% of the total fair value of the LMM portfolio) on the assets of the portfolio companies and equity investments ~~(36.5%~~(40.3% of the total fair value of the LMM portfolio) in privately held LMM companies. The LMM debt investments generally mature between five and seven years from

the original investment date. The LMM equity investments represent an equity position or the right to acquire an equity position through warrants.

As of ~~September~~June 30, ~~2018,~~2019, Private Loan portfolio primarily consists of debt investments secured by first and second priority liens ~~(89.3%~~(87.0% and ~~4.8%~~6.0% of the total fair value of the Private Loan portfolio, respectively) on the assets of the portfolio companies, unsecured debt investments ~~(2.7%~~(2.5% of the total fair value of the Private Loan portfolio) and equity investments ~~(3.2%~~(4.5% of the total fair value of the Private Loan portfolio) in Private Loan companies. The Private Loan debt investments typically have stated terms between three and seven years from the original investment date. The Private Loan equity investments represent an equity position or the right to acquire an equity position through warrants.

Our Other Portfolio investments primarily consist of ~~our investment in HMS-ORIX (discussed in more detail below) and~~ investments managed by third parties, which differ from the typical profiles for LMM, Middle Market and Private Loan portfolio investments. In the Other Portfolio investments, we may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies, private funds or ~~private funds.~~collateral loan obligations (“CLOs”).

During the ~~nine~~six months ended ~~September~~June 30, ~~2018,~~2019, we funded investment purchases of approximately ~~$476.5~~$138.8 million and had ~~four investments~~one investment under contract to purchase as of ~~September~~June 30, ~~2018~~2019 for an aggregate purchase price of approximately ~~$16.9~~$5.5 million, which settled or ~~were~~was scheduled to settle after ~~September~~June 30, ~~2018.~~2019. We also received proceeds from sales and repayments of existing portfolio investments of approximately ~~$386.1~~$191.5 million, including ~~$175.3~~$130.5 million in sales. ~~Additionally, we~~We had ~~three~~no investments under contract to sell as of ~~September~~June 30, ~~2018, for approximately $17.3 million, which represented the contract sales price.~~2019. The combined result of these transactions ~~increased~~decreased our portfolio, on a cost basis, by approximately ~~$56.7~~$47.8 million, or ~~5.3%~~4.3%, and increased the number of portfolio investments by 205, or ~~11.4%~~2.5%, compared to the portfolio as of December 31, ~~2017.~~2018. As of ~~September~~June 30, ~~2018,~~2019, the largest investment in an individual portfolio company represented approximately 2.7% of our portfolio’s fair value, with remaining investments in any individual portfolio company ranging from 0.0% to ~~1.8%~~2.2%. The average investment in our portfolio is approximately ~~$5.8~~$5.2 million or 0.5% of our total portfolio as of ~~September~~June 30, ~~2018.~~2019. Our portfolio extends across individual portfolio investments, geographic regions, and industries. Further, our total portfolio’s investment composition (excluding our Other Portfolio investments) at fair value comprises ~~80.7%~~80.3% first lien debt securities and ~~9.4%~~7.3% second lien debt securities, with the remainder in unsecured debt investments and equity investments. First lien debt securities have priority over subordinated debt owed by the issuer with respect to the collateral pledged as security for the loan. Due to the relative priority of payment of first lien investments, these generally have lower yields than lower priority, less secured investments.

During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, we made investment purchases of approximately ~~$470.9~~$314.3 million and had ~~two~~four investments under contract to purchase as of ~~September~~June 30, ~~2017~~2018 for an aggregate purchase price of approximately ~~$9.8~~$16.3 million, which settled after ~~September~~June 30, ~~2017.~~2018. We also received proceeds from sales and repayments of existing portfolio investments of approximately ~~$370.9~~$243.1 million including ~~$40.8~~$100.6 million in sales and had ~~two~~three investments under contract to sell as of ~~September~~June 30, ~~2017~~2018 for approximately ~~$12.8~~$15.0 million, which represented the contract sales price.

The result of these transactions further diversified our geographic and industry concentrations and based upon our investment rating system, which is described further below, the weighted average rating of our LMM was approximately 2.5 ~~and 2.7~~ as of ~~September~~both June 30, ~~2018~~2019 and December 31, ~~2017, respectively.~~2018. See “Portfolio Asset Quality” below for a description of the system used to rate our investments. Lastly, the overall weighted average effective yield on our investment portfolio ~~increased from 8.9%~~was 9.4% and 9.5% as of June 30, 2019 and December 31, ~~2017 to 9.2% as of September 30, 2018.~~

2018, respectively.

Summaries of the composition of our total investment portfolio at cost and fair value are shown in the following tables (this information excludes Other Portfolio investments):


	September 30, 2018								December 31, 2017								June 30, 2019								December 31, 2018
Cost:	LMM		Private Loan		Middle Market		Total		LMM		Private Loan		Middle Market		Total		LMM		Private Loan		Middle Market		Total		LMM		Private Loan		Middle Market		Total
First Lien Secured Debt	70.6	%	89.1	%	81.2	%	82.4	%	69.8	%	92.5	%	83.1	%	84.3	%	68.8	%	87.8	%	82.9	%	82.5	%	70.4	%	87.3	%	81.8	%	82.0	%
Second Lien Secured Debt	—		4.7		16.6		9.5		—		1.5		16.2		9.6		0.4		6.0		14.0		7.9		—		6.2		15.8		9.2
Unsecured Debt	—		2.8		0.2		1.1		—		3.3		0.1		1.1		0.1		2.5		0.4		1.3		—		2.6		0.2		1.1
Equity	28.7		3.2		2.0		6.8		29.2		2.5		0.6		4.8		30.1		3.6		2.7		8.1		28.9		3.7		2.2		7.5
Equity warrants	0.7		0.2		—		0.2		1.0		0.2		—		0.2		0.6		0.1		—		0.2		0.7		0.2		—		0.2
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


	September 30, 2018								December 31, 2017								June 30, 2019								December 31, 2018
Fair Value:	LMM		Private Loan		Middle Market		Total		LMM		Private Loan		Middle Market		Total		LMM		Private Loan		Middle Market		Total		LMM		Private Loan		Middle Market		Total
First Lien Secured Debt	63.5	%	89.3	%	80.8	%	80.7	%	64.7	%	92.4	%	82.1	%	83.0	%	59.3	%	87.0	%	84.7	%	80.3	%	62.1	%	87.1	%	82.9	%	80.3	%
Second Lien Secured Debt	—		4.8		16.9		9.4		—		1.5		17.0		9.8		0.3		6.0		13.7		7.3		—		6.3		15.6		8.9
Unsecured Debt	—		2.7		0.2		1.1		—		3.4		0.1		1.1		0.1		2.5		0.4		1.3		—		2.5		0.2		1.1
Equity	36.0		3.0		2.1		8.6		34.3		2.5		0.8		5.9		40.2		4.3		1.2		11.0		37.4		3.9		1.3		9.5
Equity warrants	0.5		0.2		—		0.2		1.0		0.2		—		0.2		0.1		0.2		—		0.1		0.5		0.2		—		0.2
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

For the tables showing our total investment portfolio composition by geographic region and by industry, see Note 3 -— Fair Value Hierarchy for Investments -— Portfolio Investment Composition to our condensed consolidated financial statements included elsewhere in this Report.

Investment in HMS-ORIX

We ~~co-invest~~previously co-invested in broadly-syndicated loans with Orix through our investment in HMS-ORIX, which is organized as a Delaware limited liability company. ~~Pursuant to the terms~~On May 8, 2019, HMS-ORIX Holdings I LLC, a wholly owned subsidiary of HMS-ORIX, which held all of the ~~limited liability~~investments in broadly-syndicated loans held by HMS-ORIX, was merged (the “HMS-ORIX Holdings Merger”) into Mariner CLO 7, Ltd., an exempted company ~~agreement and through representation on~~incorporated under the HMS-ORIX Board of Managers, we and Orix each have 50% voting control of HMS-ORIX and together will agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. We do not operationally control HMS-ORIX, and, accordingly, we do not consolidate the operations of HMS-ORIX within our consolidated financial statements. As of September 30, 2018, we and Orix have committed to provide, and have funded, an aggregate of $50.0 million of equity to HMS-ORIX, $30.0 million (60%laws of the ~~equity) from us and $20.0 million (40% of the equity) from Orix.~~Cayman Islands (“Mariner CLO”).

As of ~~September~~June 30, ~~2018 and December 31, 2017,~~2019, HMS-ORIX had total assets of ~~$151.5~~$0.3 million, consisting entirely of residual cash, which will be distributed to us and ~~$142.9~~Orix upon final liquidation of HMS-ORIX. As of December 31, 2018, HMS-ORIX had total assets of $162.5 million ~~respectively,~~ and HMS-ORIX’s portfolio consisted of ~~85 and 74~~107 broadly-syndicated loans, ~~respectively,~~ all of which were secured by first-priority liens, generally in industries similar to those in which we may directly invest. As of December 31, 2018, there were no loans in HMS-ORIX’s portfolio that were on non-accrual status.

On ~~April 5, 2017,~~November 20, 2018, HMS-ORIX closed on a ~~$100.0~~$170.0 million credit facility with ~~Bank of America,~~Citibank, N.A. (the “Refinanced HMS-ORIX Credit Facility”). The ~~facility has a~~proceeds from the Refinanced HMS-ORIX Credit Facility were used to pay off the outstanding balance on the Initial HMS-ORIX Credit Facility, which was subsequently terminated. The reinvestment period for the Refinanced HMS-ORIX Credit Facility was scheduled to expire on September 6, 2019, and the maturity date was nine months after expiration of ~~April 5, 2020.~~the reinvestment period (unless terminated earlier pursuant to the terms of the Refinanced HMS-ORIX Credit Facility). Borrowings under the ~~facility bear~~Refinanced HMS-ORIX Credit Facility bore interest at a rate equal to the three-month LIBOR plus ~~1.65% per annum.~~1.15%. As of ~~September 30, 2018 and~~ December 31, ~~2017, $93.3~~2018, $98.8 million ~~and $86.5 million, respectively,~~ was outstanding under this facility. Borrowings under the facility ~~are~~were secured by substantially all of the assets of HMS-ORIX. ~~If we were to include our pro-rata share of the borrowings under~~Proceeds from the HMS-ORIX credit facility as leverage on our balance sheet as of September 30, 2018, our asset coverage ratio as of such date would have been 207%, assuming our unfunded commitments are treated as senior securities.

Holdings Merger were used to pay off the Refinanced HMS-ORIX Credit Facility.

The following table presents a summary of HMS-ORIX’s portfolio as of ~~September 30, 2018 and~~ December 31, ~~2017~~2018 (dollars in thousands):


	As of September 30, 2018			As of December 31, 2017			As of December 31, 2018

Total debt investments ⁽¹⁾	$	143,895		$	138,908		$	165,025
Weighted average effective yield on loans⁽²⁾	5.49		%	4.95		%	5.82		%
Largest loan to a single borrower⁽¹⁾	$	3,470		$	3,496		$	3,461
Total of 10 largest loans to borrowers⁽¹⁾	$	30,960		$	30,790		$	30,430

(1) At principal amount.

~~The following table presents a listing of HMS-ORIX’s individual loan investments as of September 30, 2018:~~

HMS-ORIX
Loan Portfolio
As of September 30, 2018
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

Acrisure, LLC Insurance LIBOR (2 months) + 4.25%, Current Coupon 6.59%, Secured Debt (Maturity - November 22, 2023) $ 2,099
$ 2,104
$ 2,110
Advantage Sales & Marketing Inc. Commercial Services & Supplies LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - July 23, 2021) 1,975
1,934
1,824
Air Medical Group Holdings, Inc. Health Care Providers & Services LIBOR (1 month) + 3.25%, Current Coupon 5.38%, Secured Debt (Maturity - April 28, 2022) 1,975
1,966
1,947
AlixPartners, LLP Asset Management LIBOR (3 months) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - April 4, 2024) 995
995
1,001
American Seafoods Group LLC Food Products LIBOR (1 month) + 2.75%, Current Coupon 5.00%, Secured Debt (Maturity - August 21, 2023) 1,456
1,450
1,451
Ancestry.com Operations Inc. Internet Software & Services LIBOR (1 month) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - October 19, 2023) 1,300
1,311
1,307
Arch Coal, Inc. Metals & Mining LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - March 7, 2024) 1,970
1,976
1,974
Asurion, LLC Insurance LIBOR (1 month) + 3.00%, Current Coupon 5.08%, Secured Debt (Maturity - November 3, 2023) 1,264
1,264
1,275
LIBOR (1 month) + 3.00%, Current Coupon 5.08%, Secured Debt (Maturity - November 4, 2024) 324
323
327
LIBOR (1 month) + 3.00%, Current Coupon 4.97%, Secured Debt (Maturity - December 22, 2023) 2,955
2,971
2,973
4,543
4,558
4,575
BCP Renaissance Parent L.L.C. Oil, Gas & Consumable Fuels LIBOR (3 months) + 3.50%, Current Coupon 5.84%, Secured Debt (Maturity - October 31, 2024) 600
601
605

HMS-ORIX
Loan Portfolio
As of September 30, 2018
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

BMC Software Finance, Inc. Software LIBOR (3 months) + 4.25%, Current Coupon 6.55%, Secured Debt (Maturity - September 1, 2025) $ 2,800
$ 2,772
$ 2,831
LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - September 12, 2022) 3,132
3,153
3,167
5,932
5,925
5,998
Builders FirstSource, Inc. Building Products LIBOR (1 month) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - February 29, 2024) 2,955
2,952
2,964
Calpine Corporation Independent Power and Renewable Electricity Producers LIBOR (3 months) + 2.50%, Current Coupon 4.89%, Secured Debt (Maturity - January 15, 2023) 1,975
1,981
1,977
CDS U.S. Intermediate Holdings, Inc. Recreation Facilities & Services LIBOR (1 month) + 3.75%, Current Coupon 6.14%, Secured Debt (Maturity - July 8, 2022) 975
977
961
CHS/Community Health Systems, Inc. Healthcare Providers & Services LIBOR (3 months) + 3.25%, Current Coupon 5.56%, Secured Debt (Maturity - January 27, 2021) 1,460
1,457
1,444
ClubCorp Holdings, Inc. Real Estate Management & Development LIBOR (3 months) + 2.75%, Current Coupon 5.14%, Secured Debt (Maturity - September 18, 2024) 1,959
1,950
1,953
CPI International, Inc. Aerospace & Defense LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - July 26, 2024) 1,980
1,980
1,987
Cyxtera DC Holdings, Inc. Communications LIBOR (3 months) + 3.00%, Current Coupon 5.11%, Secured Debt (Maturity - May 1, 2024) 2,963
2,972
2,971
Deerfield Holdings Corporation Diversified Financial Services LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - February 13, 2025) 2,985
2,981
2,991
Diamond Resorts International, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 3.75%, Current Coupon 5.99%, Secured Debt (Maturity - September 1, 2023) 2,136
2,163
2,089
EFS Cogen Holdings I LLC Utilities LIBOR (3 months) + 3.25%, Current Coupon 5.64%, Secured Debt (Maturity - June 28, 2023) 1,835
1,845
1,831
Encapsys LLC Chemicals LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - November 7, 2024) 995
996
1,002
Endo Luxembourg Finance Company I S.a.r.l. Pharmaceuticals LIBOR (1 month) + 4.25%, Current Coupon 6.50%, Secured Debt (Maturity - April 29, 2024) 1,975
1,991
1,991
Envision Healthcare Corporation Healthcare Providers & Services LIBOR (1 month) + 3.00%, Current Coupon 5.25%, Secured Debt (Maturity - December 1, 2023) 1,415
1,415
1,410
Everi Payments Inc. Leisure Products LIBOR (3 months) + 3.00%, Current Coupon 5.24%, Secured Debt (Maturity - May 9, 2024) 1,975
1,969
1,989
Exgen Renewables IV, LLC Electrical Production LIBOR (3 months) + 3.00%, Current Coupon 5.32%, Secured Debt (Maturity - November 29, 2024) 294
294
297
Financial & Risk Diversified Financial Services LIBOR (1 month) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - October 1, 2025) 1,425
1,424
1,424
First American Payment Systems, L.P. Diversified Financial Services LIBOR (1 month) + 4.75%, Current Coupon 6.87%, Secured Debt (Maturity - January 5, 2024) 904
913
911
Fitness International, LLC Hotels, Restaurants & Leisure LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - April 18, 2025) 1,584
1,606
1,590

HMS-ORIX
Loan Portfolio
As of September 30, 2018
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

Flex Acquisition Company Inc Containers & Packaging LIBOR (3 months) + 3.00%, Current Coupon 5.34%, Secured Debt (Maturity - December 29, 2023) $ 1,980
$ 1,988
$ 1,981
Flexera Software LLC Software LIBOR (1 month) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - February 26, 2025) 1,522
1,518
1,528
Gardner Denver, Inc. Machinery LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - July 30, 2024) 1,596
1,603
1,606
Golden Nugget, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 2.75%, Current Coupon 4.90%, Secured Debt (Maturity - October 4, 2023) 1,951
1,951
1,960
GrafTech Finance Inc. Diversified Financial Services LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - February 12, 2025) 1,975
1,956
1,991
Greatbatch Ltd. Health Care Equipment & Supplies LIBOR (1 month) + 3.00%, Current Coupon 5.14%, Secured Debt (Maturity - October 27, 2022) 2,083
2,093
2,099
GYP Holdings III Corp. Trading Companies & Distributors LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - June 2, 2025) 3,456
3,481
3,453
Harbor Freight Tools USA, Inc. Specialty Retail LIBOR (1 month) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - August 18, 2023) 1,945
1,952
1,949
HD Supply Waterworks, Ltd. Trading Companies & Distributors LIBOR (6 months) + 3.00%, Current Coupon 5.31%, Secured Debt (Maturity - August 1, 2024) 139
139
140
Horizon Pharma, Inc. Pharmaceuticals LIBOR (1 month) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - March 29, 2024) 1,925
1,941
1,943
Huntsman Holdings LLC Chemicals LIBOR (3 months) + 5.00%, Current Coupon 7.24%, Secured Debt (Maturity - September 25, 2024) 1,980
1,941
2,002
IG Investments Holdings, LLC Construction LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - May 23, 2025) 1,980
1,992
2,000
IRB Holding Corp. Hotels, Restaurants & Leisure LIBOR (1 month) + 3.25%, Current Coupon 5.46%, Secured Debt (Maturity - February 5, 2025) 398
398
399
KBR, Inc. Construction LIBOR (1 month) + 3.75%, Current Coupon 5.99%, Secured Debt (Maturity - April 25, 2025) 1,247
1,241
1,262
KMG Chemicals, Inc. Chemicals LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - June 17, 2024) 737
734
741
KUEHG Corp. Educational Services LIBOR (1 month) + 3.75%, Current Coupon 6.14%, Secured Debt (Maturity - February 21, 2025) 2,464
2,471
2,481
LANDesk Group, Inc. Software LIBOR (1 month) + 4.25%, Current Coupon 6.33%, Secured Debt (Maturity - January 22, 2024) 986
991
995
Learfield Communications LLC Media LIBOR (1 month) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - December 1, 2023) 1,975
1,991
2,000
MA FinanceCo., LLC Electric Equipment, Instruments & Components LIBOR (1 month) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - June 21, 2024) 385
385
384
Mallinckrodt International Finance S.A. Pharmaceuticals LIBOR (6 months) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - February 24, 2025) 995
993
997
McDermott International, Inc. Oil, Gas & Consumable Fuels LIBOR (1 month) + 5.00%, Current Coupon 7.08%, Secured Debt (Maturity - May 12, 2025) 995
976
1,010

HMS-ORIX
Loan Portfolio
As of September 30, 2018
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

Mohegan Tribal Gaming Authority Hotels, Restaurants & Leisure LIBOR (1 month) + 4.00%, Current Coupon 6.24%, Secured Debt (Maturity - October 13, 2023) $ 1,919
$ 1,934
$ 1,816
MPH Acquisition Holdings LLC Health Care Technology LIBOR (3 months) + 2.75%, Current Coupon 5.14%, Secured Debt (Maturity - June 7, 2023) 2,664
2,695
2,672
NAB Holdings, LLC IT Services LIBOR (3 months) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - July 1, 2024) 1,980
1,971
1,961
Ortho-Clinical Diagnostics, Inc Life Sciences Tools & Services LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - June 30, 2025) 1,955
1,950
1,964
PI UK Holdco II Limited Specialty Finance LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - January 3, 2025) 2,985
2,964
2,982
Rackspace Hosting, Inc. Internet Software & Services LIBOR (3 months) + 3.00%, Current Coupon 5.35%, Secured Debt (Maturity - November 3, 2023) 3,259
3,281
3,221
Radiate Holdco, LLC Media LIBOR (1 month) + 3.00%, Current Coupon 5.24%, Secured Debt (Maturity - February 1, 2024) 2,551
2,528
2,550
Red Ventures, LLC Direct Marketing Services LIBOR (1 month) + 4.00%, Current Coupon 6.24%, Secured Debt (Maturity - November 8, 2024) 1,635
1,624
1,656
Savage Enterprises, LLC Transportation and Logistics LIBOR (1 month) + 4.50%, Current Coupon 6.60%, Secured Debt (Maturity - August 1, 2025) 1,129
1,107
1,146
Scientific Games International, Inc. Leisure Products LIBOR (1 month) + 2.75%, Current Coupon 4.99%, Secured Debt (Maturity - August 14, 2024) 895
896
894
Seattle SpinCo, Inc. Electric Equipment, Instruments & Components LIBOR (3 months) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - June 21, 2024) 2,600
2,603
2,596
SeaWorld Parks & Entertainment, Inc. Hotels, Restaurants & Leisure LIBOR (3 months) + 3.00%, Current Coupon 5.24%, Secured Debt (Maturity - April 1, 2024) 1,970
1,972
1,970
SRS Distribution Inc. Trading Companies & Distributors LIBOR (3 months) + 3.25%, Current Coupon 5.44%, Secured Debt (Maturity - May 23, 2025) 1,200
1,197
1,193
SS&C Technologies, Inc. Software LIBOR (1 month) + 2.25%, Current Coupon 4.49%, Secured Debt (Maturity - April 16, 2025) 560
559
561
LIBOR (1 month) + 2.25%, Current Coupon 4.49%, Secured Debt (Maturity - April 16, 2025) 217
217
218
777
776
779
Staples, Inc. Distributors LIBOR (3 months) + 4.00%, Current Coupon 6.34%, Secured Debt (Maturity - September 12, 2024) 1,985
1,981
1,990
Starfruit Finco B.V. Chemicals LIBOR (1 month) + 3.25%, Current Coupon 5.57%, Secured Debt (Maturity - October 1, 2025) 1,250
1,247
1,257
Telenet Financing USD LLC Diversified Telecommunications Services LIBOR (1 month) + 2.25%, Current Coupon 4.41%, Secured Debt (Maturity - August 17, 2026) 1,655
1,653
1,650
Transdigm, Inc. Aerospace & Defense LIBOR (1 month) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - June 9, 2023) 1,970
1,977
1,980
LIBOR (1 month) + 2.50%, Current Coupon 4.74%, Secured Debt (Maturity - August 22, 2024) 993
990
997
2,963
2,967
2,977

HMS-ORIX
Loan Portfolio
As of September 30, 2018
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

Travelport Finance (Luxembourg) S.A.R.L. Internet Software & Services LIBOR (3 months) + 2.50%, Current Coupon 4.81%, Secured Debt (Maturity - March 17, 2025) $ 1,243
$ 1,238
$ 1,245
Traverse Midstream Partners LLC Oil, Gas & Consumable Fuels LIBOR (3 months) + 4.00%, Current Coupon 6.34%, Secured Debt (Maturity - September 27, 2024) 781
784
788
UFC Holdings, LLC Media LIBOR (3 months) + 3.25%, Current Coupon 5.50%, Secured Debt (Maturity - August 18, 2023) 1,975
1,985
1,989
Ultra Resources, Inc. Oil, Gas & Consumable Fuels LIBOR (1 month) + 3.00%, Current Coupon 5.17%, Secured Debt (Maturity - April 12, 2024) 2,000
2,002
1,808
Utz Quality Foods, LLC Commercial Services & Supplies LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - November 21, 2024) 1,588
1,587
1,595
Valeant Pharmaceuticals International, Inc. Pharmaceuticals LIBOR (1 month) + 3.00%, Current Coupon 5.10%, Secured Debt (Maturity - June 2, 2025) 1,420
1,426
1,429
Vertafore, Inc. Software LIBOR (1 month) + 3.25%, Current Coupon 5.49%, Secured Debt (Maturity - June 4, 2025) 2,500
2,488
2,514
Vertiv Group Corporation Electrical Equipment LIBOR (3 months) + 4.00%, Current Coupon 6.31%, Secured Debt (Maturity - November 30, 2023) 1,555
1,567
1,547
Vistra Operations Company LLC Electric Utilities LIBOR (1 month) + 2.25%, Current Coupon 4.49%, Secured Debt (Maturity - December 14, 2023) 1,970
1,980
1,977
Web.com Group, Inc. Internet Software and Services LIBOR (3 months) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - September 17, 2025) 1,000
1,000
1,008
West Corporation Diversified Telecommunications Services LIBOR (1 month) + 3.50%, Current Coupon 5.74%, Secured Debt (Maturity - October 10, 2024) 648
648
644
LIBOR (1 month) + 4.00%, Current Coupon 6.24%, Secured Debt (Maturity - October 10, 2024) 1,024
1,015
1,022
1,672
1,663
1,666
WideOpenWest Finance, LLC Diversified Telecommunications Services LIBOR (1 month) + 3.25%, Current Coupon 5.41%, Secured Debt (Maturity - August 18, 2023) 3,470
3,478
3,410
Total Loan Portfolio $ 143,965
$ 143,745

The following table presents a listing of HMS-ORIX’s individual loan investments as of December 31, ~~2017:~~2018:

																	HMS-ORIX	Loan Portfolio
As of December 31, 2017
As of December 31, 2018									As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value		Industry	Type of Investment	Principal		Cost		Fair Value

Acosta, Inc.	Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 26, 2021)	$	2,000	$	1,881	$	1,766
Acrisure, LLC	Insurance	LIBOR (2 months) + 4.25%, Current Coupon 5.65%, Secured Debt (Maturity - November 22, 2023)	2,115		2,122		2,139		Insurance	LIBOR (2 months) + 4.25%, Current Coupon 6.77%, Secured Debt (Maturity - November 22, 2023)	$	2,492	$	2,487	$	2,422
Advantage Sales & Marketing Inc.	Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - July 23, 2021)	1,990		1,938		1,945		Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - July 23, 2021)	1,970		1,913		1,752
Air Medical Group Holdings, Inc.									Health Care Providers and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - April 28, 2022)	1,970		1,960		1,847
AlixPartners, LLP									Professional Services	LIBOR (3 months) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - April 4, 2024)	992		992		956
American Seafoods Group LLC									Food Products	LIBOR (1 month) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - August 21, 2023)	1,435		1,428		1,382
Ancestry.com Operations Inc.									Internet Software and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - October 19, 2023)	1,293		1,306		1,240
Arch Coal, Inc.									Metals and Mining	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - March 7, 2024)	1,965		1,972		1,916
Asurion, LLC									Insurance	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 3, 2023)	1,261		1,261		1,212
										LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 4, 2024)	323		322		310
											1,584		1,583		1,522
Atkore International, Inc.									Electric Equipment, Instruments and Components	LIBOR (1 month) + 3.00%, Current Coupon 4.97%, Secured Debt (Maturity - December 22, 2023)	2,948		2,967		2,864
Barracuda Networks									Internet Software and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - February 12, 2025)	1,000		974		956
Bass Pro Group, LLC									Specialty Retail	LIBOR (3 months) + 4.25%, Current Coupon 6.55%, Secured Debt (Maturity - September 25, 2024)	1,975		1,929		1,898
Bausch Health Companies Inc.									Health Care Equipment and Supplies	LIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - June 2, 2025)	1,402		1,408		1,342
BCP Renaissance Parent L.L.C.									Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 31, 2024)	597		599		583
Boxer Parent Company, Inc.									Software	LIBOR (3 months) + 4.25%, Current Coupon 7.05%, Secured Debt (Maturity - October 2, 2025)	2,800		2,772		2,708
Boyd Gaming Corporation									Hotels, Restaurants and Leisure	LIBOR (1 week) + 2.25%, Current Coupon 4.66%, Secured Debt (Maturity - September 15, 2023)	1,250		1,208		1,208
Builders FirstSource, Inc.									Building Products	LIBOR (1 month) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - February 29, 2024)	2,947		2,943		2,774
Caesars Resort Collection, LLC									Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - December 23, 2024)	1,247		1,210		1,201
Calpine Corporation									Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 2.50%, Current Coupon 5.31%, Secured Debt (Maturity - January 15, 2023)	1,970		1,977		1,881
CareerBuilder									Internet Software and Services	LIBOR (3 months) + 6.75%, Current Coupon 9.14%, Secured Debt (Maturity - July 31, 2023)	1,500		1,500		1,493

HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

Air Medical Group Holdings Inc Health Care Providers & Services LIBOR (6 months) + 4.00%, Current Coupon 5.67%, Secured Debt (Maturity - April 28, 2022) $ 1,990
$ 1,981
$ 1,993
Albany Molecular Research, Inc. Life Sciences Tools & Services LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 28, 2024) 100
100
99
Alphabet Holding Company, Inc. Food Products LIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - September 26, 2024) 1,995
1,985
1,935
American Seafoods Group LLC Food Products Prime + 2.25%, Current Coupon 6.75%, Secured Debt (Maturity - August 21, 2023) 1,500
1,493
1,513
Ancestry.com Operations Inc. Internet Software & Services LIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 19, 2023) 1,995
2,013
2,007
Arch Coal, Inc. Metals & Mining LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - March 7, 2024) 1,985
1,992
2,004
AshCo, Inc. Specialty Retail LIBOR (3 months) + 5.00%, Current Coupon 6.57%, Secured Debt (Maturity - September 25, 2024) 1,995
1,951
1,993
Asurion, LLC Insurance LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - November 3, 2023) 1,312
1,312
1,320
Atkore International, Inc. Electric Equipment, Instruments & Components LIBOR (3 months) + 3.00%, Current Coupon 4.70%, Secured Debt (Maturity - December 22, 2023) 2,977
3,005
2,999
BCP Renaissance Parent L.L.C. Oil, Gas & Consumable Fuels LIBOR (3 months) + 4.00%, Current Coupon 5.38%, Secured Debt (Maturity - October 31, 2024) 600
602
608
BMC Software Finance, Inc. Software LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 12, 2022) 3,156
3,181
3,163
Builders FirstSource, Inc. Building Products LIBOR (1 month) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - February 29, 2024) 2,977
2,974
2,993
Calpine Corporation Independent Power and Renewable Electricity Producers LIBOR (3 months) + 2.50%, Current Coupon 4.20%, Secured Debt (Maturity - January 15, 2023) 1,990
1,997
1,991
CHS/Community Health Systems, Inc. Health Care Providers & Services LIBOR (3 months) + 3.00%, Current Coupon 4.48%, Secured Debt (Maturity - January 27, 2021) 1,613
1,608
1,543
ClubCorp Holdings, Inc. Real Estate Management & Development LIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - September 18, 2024) 1,959
1,949
1,969
Colorado Buyer Inc Technology Hardware, Storage & Peripherals LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - May 1, 2024) 2,985
2,995
3,008
Confie Seguros Holding II Co. Insurance LIBOR (1 month) + 5.25%, Current Coupon 6.73%, Secured Debt (Maturity - April 19, 2022) 1,985
1,992
1,987
CPI International, Inc. Aerospace & Defense LIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - July 26, 2024) 1,995
1,995
2,011
Diamond Resorts International, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 4.50%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023) 2,152
2,179
2,173



HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

CDS U.S. Intermediate Holdings, Inc.	Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - July 8, 2022)	$	973	$	974	$	914
CenturyLink, Inc.	Diversified Telecommunication Services	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - January 31, 2025)	997		943		934
Citgo Petroleum Corporation	Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 5.90%, Secured Debt (Maturity - July 29, 2021)	695		689		682
ClubCorp Holdings, Inc.	Real Estate Management and Development	LIBOR (3 months) + 2.75%, Current Coupon 5.55%, Secured Debt (Maturity - September 18, 2024)	1,959		1,949		1,852
CPI International, Inc.	Aerospace and Defense	LIBOR (1 month) + 3.50%, Current Coupon 6.01%, Secured Debt (Maturity - July 26, 2024)	1,975		1,975		1,919
Creative Artists Agency LLC	Entertainment	LIBOR (1 month) + 3.00%, Current Coupon 5.47%, Secured Debt (Maturity - February 15, 2024)	997		983		966
Cyxtera DC Holdings, Inc.	Technology Hardware, Storage and Peripherals	LIBOR (3 months) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - May 1, 2024)	2,955		2,966		2,840
Deerfield Holdings Corporation	Diversified Financial Services	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - February 13, 2025)	2,978		2,974		2,827
Diamond Resorts International, Inc.	Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023)	2,130		2,159		1,992
EFS Cogen Holdings I LLC	Electric Utilities	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - June 28, 2023)	1,816		1,830		1,781
Eldorado Resorts, Inc.	Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 17, 2024)	1,000		968		960
Encapsys LLC	Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - November 7, 2024)	993		994		970
Endo Luxembourg Finance Company I S.a.r.l.	Pharmaceuticals	LIBOR (1 month) + 4.25%, Current Coupon 6.81%, Secured Debt (Maturity - April 29, 2024)	1,970		1,989		1,862
Everi Payments Inc.	Leisure Products	LIBOR (3 months) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - May 9, 2024)	1,970		1,963		1,917
Exgen Renewables IV, LLC	Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - November 29, 2024)	294		293		281
Financial & Risk US Holdings, Inc.	Software	LIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - October 1, 2025)	1,425		1,424		1,363
First American Payment Systems, L.P.	Diversified Financial Services	LIBOR (1 month) + 4.75%, Current Coupon 7.29%, Secured Debt (Maturity - January 5, 2024)	889		900		885
Fitness International, LLC	Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - April 18, 2025)	2,039		2,050		1,963
Flex Acquisition Company Inc	Containers and Packaging	LIBOR (3 months) + 3.00%, Current Coupon 5.35%, Secured Debt (Maturity - December 29, 2023)	1,975		1,985		1,869
Flexera Software LLC	Software	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - February 26, 2025)	1,518		1,514		1,468
Gardner Denver, Inc.	Machinery	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - July 30, 2024)	2,316		2,309		2,242

HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio Company Industry Type of Investment Principal Cost Fair Value

Duff & Phelps Corporation Diversified Financial Services LIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - October 15, 2024) $ 491
$ 494
$ 493
LIBOR (3 months) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - December 4, 2024) 2,728
2,724
2,737
3,219
3,218
3,230
EFS Cogen Holdings I LLC Electric Utilities LIBOR (3 months) + 3.25%, Current Coupon 4.95%, Secured Debt (Maturity - June 28, 2023) 1,904
1,917
1,925
Encapsys LLC Chemicals LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - November 7, 2024) 1,000
1,001
1,006
Endo Luxembourg Finance Company I S.a.r.l. Pharmaceuticals LIBOR (1 month) + 4.25%, Current Coupon 5.88%, Secured Debt (Maturity - April 29, 2024) 1,990
2,009
2,005
Envision Healthcare Corporation Health Care Providers & Services LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - December 1, 2023) 2,481
2,481
2,491
Everi Payments Inc. Leisure Products LIBOR (3 months) + 3.50%, Current Coupon 4.98%, Secured Debt (Maturity - May 9, 2024) 1,990
1,983
2,013
Exgen Renewables IV, LLC Electrical Production LIBOR (3 months) + 3.00%, Current Coupon 4.47%, Secured Debt (Maturity - November 29, 2024) 300
299
304
First American Payment Systems, L.P. Diversified Financial Services LIBOR (1 month) + 5.75%, Current Coupon 7.14%, Secured Debt (Maturity - January 5, 2024) 952
963
958
Fitness International, LLC Hotels, Restaurants & Leisure LIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - July 1, 2020) 1,735
1,757
1,760
Flex Acquisition Company Inc Containers & Packaging LIBOR (3 months) + 3.00%, Current Coupon 4.34%, Secured Debt (Maturity - December 29, 2023) 1,995
2,004
2,008
Flexera Software LLC Software LIBOR (1 month) + 3.50%, Current Coupon 4.83%, Secured Debt (Maturity - April 2, 2020) 1,995
2,013
2,008
Gardner Denver, Inc. Machinery LIBOR (1 month) + 2.75%, Current Coupon 4.44%, Secured Debt (Maturity - July 30, 2024) 1,995
2,005
2,004
Golden Nugget, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 4, 2023) 1,990
1,990
2,008
Greatbatch Ltd. Health Care Equipment & Supplies LIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 27, 2022) 2,763
2,780
2,788
GYP Holdings III Corp. Trading Companies & Distributors LIBOR (1 month) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - March 31, 2023) 3,483
3,506
3,502
Harbor Freight Tools USA, Inc. Specialty Retail LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 18, 2023) 1,980
1,987
1,996
HD Supply Waterworks, Ltd. Trading Companies & Distributors LIBOR (6 months) + 3.00%, Current Coupon 4.46%, Secured Debt (Maturity - August 1, 2024) 140
140
141
Horizon Pharma, Inc. Pharmaceuticals LIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - March 29, 2024) 1,990
2,009
2,001
IG Investments Holdings, LLC Professional Services LIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - October 29, 2021) 1,990
2,002
1,992



HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Golden Nugget, Inc.	Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.19%, Secured Debt (Maturity - October 4, 2023)	$	1,875	$	1,875	$	1,811
GrafTech Finance Inc.	Metals and Mining	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - February 12, 2025)	1,950		1,931		1,850
Gray Television, Inc.	Broadcast Radio and Television	LIBOR (3 months) + 2.50%, Current Coupon 4.90%, Secured Debt (Maturity - January 2, 2026)	286		281		277
Greatbatch Ltd.	Pharmaceuticals	LIBOR (1 month) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - October 27, 2022)	2,000		2,012		1,956
GYP Holdings III Corp.	Trading Companies and Distributors	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - June 2, 2025)	3,448		3,473		3,261
Harbor Freight Tools USA, Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 18, 2023)	1,944		1,951		1,841
HD Supply Waterworks, Ltd.	Trading Companies and Distributors	LIBOR (6 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - August 1, 2024)	139		138		134
Horizon Pharma, Inc.	Pharmaceuticals	LIBOR (1 month) + 3.00%, Current Coupon 5.56%, Secured Debt (Maturity - March 29, 2024)	1,925		1,944		1,841
Hyland Software, Inc.	Software	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - July 1, 2024)	499		485		486
IG Investments Holdings, LLC	Professional Services	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - May 23, 2025)	1,975		1,987		1,929
Infiltrator Water Technologies, LLC	Specialty Retail	LIBOR (3 months) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - May 27, 2022)	1,394		1,372		1,354
Invenergy, LLC	Renewable Energy Provider	LIBOR (1 month) + 3.50%, Current Coupon 5.84%, Secured Debt (Maturity - August 28, 2025)	1,946		1,941		1,932
IRB Holding Corp.	Food Products	LIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - February 5, 2025)	397		397		380
Ivanti Software, Inc.	Software	LIBOR (1 month) + 4.25%, Current Coupon 6.60%, Secured Debt (Maturity - January 22, 2024)	983		989		959
KBR, Inc.	Aerospace and Defense	LIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - April 25, 2025)	1,992		1,984		1,962
Kingpin Intermediate Holdings LLC	Diversified Consumer Services	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - July 3, 2024)	998		988		971
KUEHG Corp.	Diversified Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.55%, Secured Debt (Maturity - February 21, 2025)	2,457		2,465		2,368
Learfield Communications LLC	Media	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - December 1, 2023)	1,970		1,989		1,923
MA FinanceCo., LLC	Software	LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)	384		385		358
Mallinckrodt International Finance S.A.	Pharmaceuticals	LIBOR (6 months) + 3.00%, Current Coupon 5.62%, Secured Debt (Maturity - February 24, 2025)	993		991		921
Match Group, Inc.	Media	LIBOR (2 months) + 2.50%, Current Coupon 5.09%, Secured Debt (Maturity - November 16, 2022)	2,000		1,998		1,990

																	HMS-ORIX	Loan Portfolio
As of December 31, 2017
As of December 31, 2018									As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value		Industry	Type of Investment	Principal		Cost		Fair Value

Jackson Hewitt Tax Service Inc.	Diversified Financial Services	LIBOR (1 month) + 7.00%, Current Coupon 8.38%, Secured Debt (Maturity - July 30, 2020)	$	1,939	$	1,868	$	1,922
KMG Chemicals, Inc.	Chemicals	LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 17, 2024)	863		859		868
KUEHG Corp.	Educational Services	LIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - August 12, 2022)	2,482		2,489		2,493
LANDesk Group, Inc.	Software	LIBOR (1 month) + 4.25%, Current Coupon 5.82%, Secured Debt (Maturity - January 22, 2024)	993		999		947
Learfield Communications LLC	Media	LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - December 1, 2023)	1,990		2,009		2,007
MA FinanceCo., LLC	Electric Equipment, Instruments & Components	LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024)	387		387		388
McAfee, LLC									Software	LIBOR (3 months) + 3.75%, Current Coupon 6.10%, Secured Debt (Maturity - September 30, 2024)	$	948	$	933	$	925
McDermott International, Inc.									Construction and Engineering	LIBOR (1 month) + 5.00%, Current Coupon 7.52%, Secured Debt (Maturity - May 12, 2025)	993		973		929
Metro-Goldwyn-Mayer Inc.									Media	LIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - July 3, 2025)	998		970		964
Michaels Stores, Inc.									Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 4.97%, Secured Debt (Maturity - January 30, 2023)	1,000		973		960
Micro Holding Corp. (MH Sub and Internet Brands)									Media	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 13, 2024)	1,247		1,217		1,186
Mohegan Tribal Gaming Authority	Hotels, Restaurants & Leisure	LIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - October 13, 2023)	1,985		2,003		2,006		Hotels, Restaurants and Leisure	LIBOR (1 month) + 4.00%, Current Coupon 6.52%, Secured Debt (Maturity - October 13, 2023)	1,914		1,933		1,719
MPH Acquisition Holdings LLC	Health Care Technology	LIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - June 7, 2023)	2,896		2,935		2,905		Health Care Technology	LIBOR (1 month) + 3.25%, Current Coupon 5.57%, Secured Debt (Maturity - June 7, 2023)	2,664		2,702		2,532
NAB Holdings, LLC	IT Services	LIBOR (3 months) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - July 1, 2024)	1,990		1,981		2,000		IT Services	LIBOR (3 months) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - July 1, 2024)	1,975		1,965		1,885
Ortho-Clinical Diagnostics, Inc	Life Sciences Tools & Services	LIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - June 30, 2021)	1,985		1,980		1,992		Life Sciences Tools and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.76%, Secured Debt (Maturity - June 30, 2025)	1,945		1,940		1,809
PODS, LLC	Transportation & Logistics	LIBOR (1 month) + 3.00%, Current Coupon 4.40%, Secured Debt (Maturity - December 6, 2024)	1,995		1,994		2,010
Packaging Coordinators Midco Inc									Health Care Facilities and Services	LIBOR (3 months) + 4.00%, Current Coupon 6.81%, Secured Debt (Maturity - June 30, 2023)	997		992		985
Party City Holdings Inc.									Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - August 19, 2022)	1,245		1,224		1,205
PI UK Holdco II Limited									Diversified Financial Services	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - January 3, 2025)	2,978		2,956		2,893
Prime Security Services, LLC (Protection One)									Commercial Services and Supplies	LIBOR (1 month) + 2.75%, Current Coupon 5.09%, Secured Debt (Maturity - May 2, 2022)	654		638		628
Rackspace Hosting, Inc.	Electric Equipment, Instruments & Components	LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - November 3, 2023)	3,284		3,309		3,286		Electric Equipment, Instruments and Components	LIBOR (3 months) + 3.00%, Current Coupon 5.58%, Secured Debt (Maturity - November 3, 2023)	3,251		3,276		2,884
Radiate Holdco, LLC	Media	LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - February 1, 2024)	2,570		2,544		2,547		Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - February 1, 2024)	2,544		2,519		2,408
Red Ventures, LLC	Direct Marketing Services	LIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - November 8, 2024)	1,995		1,981		1,996		Professional Services	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 8, 2024)	1,631		1,619		1,590
Savage Enterprises, LLC									Road and Rail	LIBOR (1 month) + 4.50%, Current Coupon 6.88%, Secured Debt (Maturity - August 1, 2025)	1,097		1,076		1,085
Scientific Games International, Inc.	Leisure Products	LIBOR (1 month) + 3.25%, Current Coupon 4.67%, Secured Debt (Maturity - August 14, 2024)	399		401		403		Leisure Products	LIBOR (2 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - August 14, 2024)	892		893		840
Seattle Spin Co.	Electric Equipment, Instruments & Components	LIBOR (3 months) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024)	2,613		2,616		2,618
Seattle SpinCo, Inc.									Software	LIBOR (3 months) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)	2,593		2,597		2,422
SeaWorld Parks & Entertainment, Inc.	Hotels, Restaurants & Leisure	LIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - April 1, 2024)	1,985		1,987		1,966		Hotels, Restaurants and Leisure	LIBOR (3 months) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - April 1, 2024)	1,965		1,967		1,881
Signode Industrial Group US Inc.	Machinery	LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - April 30, 2021)	2,773		2,792		2,785
Staples, Inc.	Distributors	LIBOR (3 months) + 4.00%, Current Coupon 5.49%, Secured Debt (Maturity - September 12, 2024)	2,000		1,995		1,965
Telenet Financing USD LLC	Diversified Telecommunications Services	LIBOR (1 month) + 2.50%, Current Coupon 3.92%, Secured Debt (Maturity - March 2, 2026)	1,655		1,655		1,663

ServiceMaster Global Holdings, Inc.									Home and Office Products	LIBOR (1 month) + 2.50%, Current Coupon 4.84%, Secured Debt (Maturity - November 8, 2023)	2,000		1,993		1,964

																	HMS-ORIX	Loan Portfolio
As of December 31, 2017
As of December 31, 2018									As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value		Industry	Type of Investment	Principal		Cost		Fair Value

Sprint Corporation									Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - February 2, 2024)	$	500	$	493	$	485
SRS Distribution Inc.									Trading Companies and Distributors	LIBOR (3 months) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - May 23, 2025)	1,197		1,194		1,120
SS&C European Holdings S.a.r.l.									Software	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)	206		205		195
SS&C Technologies, Inc.									Software	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)	543		541		514
Staples, Inc.									Distributors	LIBOR (3 months) + 4.00%, Current Coupon 6.54%, Secured Debt (Maturity - September 12, 2024)	1,980		1,975		1,903
Starfruit US Holdco LLC									Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.60%, Secured Debt (Maturity - October 1, 2025)	1,250		1,247		1,204
Telenet Financing USD LLC									Diversified Telecommunication Services	LIBOR (1 month) + 2.25%, Current Coupon 4.71%, Secured Debt (Maturity - August 17, 2026)	1,655		1,653		1,580
Transdigm, Inc.	Aerospace & Defense	LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 9, 2023)	$	1,985	$	1,992	$	1,990	Aerospace and Defense	LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 9, 2023)	1,965		1,972		1,859
		LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - August 22, 2024)	1,000		998		1,006			LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 22, 2024)	990		988		937
			2,985		2,990		2,996				2,955		2,960		2,796
Travelport Finance (Luxembourg) S.A.R.L.	Internet Software & Services	LIBOR (3 months) + 2.75%, Current Coupon 4.17%, Secured Debt (Maturity - September 2, 2021)	1,901		1,901		1,903		Internet Software and Services	LIBOR (3 months) + 2.50%, Current Coupon 5.12%, Secured Debt (Maturity - March 17, 2025)	1,237		1,231		1,219
Traverse Midstream Partners LLC	Oil, Gas & Consumable Fuels	LIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024)	781		784		793		Oil, Gas and Consumable Fuels	LIBOR (3 months) + 4.00%, Current Coupon 6.60%, Secured Debt (Maturity - September 27, 2024)	781		784		752
UFC Holdings, LLC	Media	LIBOR (3 months) + 3.25%, Current Coupon 4.81%, Secured Debt (Maturity - August 18, 2023)	1,990		2,002		2,003		Media	LIBOR (3 months) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - August 18, 2023)	1,965		1,977		1,920
Ultra Resources, Inc.	Oil, Gas & Consumable Fuels	LIBOR (1 month) + 3.00%, Current Coupon 4.41%, Secured Debt (Maturity - April 12, 2024)	2,000		2,002		2,002
USS Ultimate Holdings, Inc. (United Site)									Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.09%, Secured Debt (Maturity - August 26, 2024)	598		590		590
Utz Quality Foods, LLC	Commercial Services and Supplies	LIBOR (1 month) + 3.50%, Current Coupon 5.01%, Secured Debt (Maturity - November 21, 2024)	1,600		1,599		1,616		Food Products	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - November 21, 2024)	1,584		1,583		1,539
Valeant Pharmaceuticals International, Inc.	Pharmaceuticals	LIBOR (1 month) + 3.50%, Current Coupon 4.94%, Secured Debt (Maturity - April 1, 2022)	1,546		1,553		1,570
VeriFone Systems, Inc.									Hardware	LIBOR (1 month) + 4.00%, Current Coupon 6.64%, Secured Debt (Maturity - August 20, 2025)	500		490		485
Vertafore, Inc.									Software	LIBOR (1 month) + 3.25%, Current Coupon 6.05%, Secured Debt (Maturity - July 2, 2025)	2,500		2,488		2,384
Vertiv Group Corporation	Electrical Equipment	LIBOR (3 months) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - November 30, 2023)	1,555		1,569		1,556		Electrical Equipment	LIBOR (3 months) + 4.00%, Current Coupon 6.71%, Secured Debt (Maturity - November 30, 2023)	1,555		1,570		1,420
Vistra Operations Company LLC	Electric Utilities	LIBOR (2 months) + 2.75%, Current Coupon 4.08%, Secured Debt (Maturity - December 14, 2023)	1,985		1,996		2,001		Electric Utilities	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - December 14, 2023)	1,965		1,977		1,895
West Corporation	Diversified Telecommunications Services	LIBOR (1 month) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - October 10, 2024)	1,032		1,022		1,036
WideOpenWest Finance, LLC	Diversified Telecommunications Services	LIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - August 18, 2023)	3,496		3,506		3,470
Total Loan Portfolio					$	139,017	$	139,012
Web.Com Group, Inc.									Internet Software and Services	LIBOR (3 months) + 3.75%, Current Coupon 6.17%, Secured Debt (Maturity - October 10, 2025)	1,000		1,000		965



HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

West Corporation	Diversified Telecommunication Services	LIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 10, 2024)	$	647	$	646	$	593
		LIBOR (3 months) + 4.00%, Current Coupon 6.53%, Secured Debt (Maturity - October 10, 2024)	1,021		1,011		941
			1,668		1,657		1,534
WideOpenWest Finance, LLC	Diversified Telecommunication Services	LIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - August 18, 2023)	3,461		3,471		3,215
William Morris Endeavor Entertainment, LLC	Recreation Facilities and Services	LIBOR (3 months) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - May 16, 2025)	638		608		608
Zekelman Industries, Inc	Manufactured Goods	LIBOR (1 month) + 2.25%, Current Coupon 4.86%, Secured Debt (Maturity - June 14, 2021)	1,000		985		970
Total Loan Portfolio			$	165,025	$	164,570	$	157,923

For the three months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, we recognized approximately ~~$536,000~~$0 and ~~$0,~~$530,000, respectively, of dividend income in respect of our investment in HMS-ORIX. For the ~~nine~~six months ended ~~September~~June 30, 2019 and 2018, ~~and for~~ the ~~period from inception (April 4, 2017) to September 30, 2017, we~~Company recognized approximately ~~$1.6~~$546,000 and $1.1 million, ~~and $0,~~ respectively, of dividend income in respect of ~~our~~its investment in HMS-ORIX.

The following tables show the summarized financial information for HMS-ORIX (dollars in thousands):

									HMS-ORIX SLF LLC
Balance Sheet (Unaudited)
Balance Sheet					Balance Sheet
(dollars in thousands)

	As of September 30, 2018		As of December 31, 2017		As of June 30, 2019		As of December 31, 2018
Assets
Portfolio investments at fair value (amortized cost: $143,965 and $139,017 as of September 30, 2018 and December 31, 2017, respectively)	$	143,745	$	139,012
Portfolio investments at fair value (amortized cost: $164,570 as of December 31, 2018)					$	—	$	157,923
Cash and cash equivalents	3,967		2,681		320		3,873
Receivable for securities sold	2,891		—		—		—
Interest receivable	268		306		—		197
Deferred financing costs, net	596		890		—		497
Other assets	31		15		—		30
Total assets	$	151,498	$	142,904	$	320	$	162,520
Liabilities
Credit facilities payable	$	93,300	$	86,500	$	—	$	98,818
Payable for securities purchased	6,443		5,268		—		18,442
Distributions payable	893		—		—		902
Accounts payable and accrued expenses	79		64		10		439
Total liabilities	100,715		91,832		10		118,601
Net assets
Members’ equity	50,783		51,072		310		43,919
Total net assets	50,783		51,072		310		43,919
Total liabilities and net assets	$	151,498	$	142,904	$	320	$	162,520

																										HMS-ORIX SLF LLC
Statement of Operations (Unaudited)
Statement of Operations														Statement of Operations
(dollars in thousands)
	Three Months Ended						Nine Months Ended September 30, 2018				For the Period from Inception (April 4, 2017) through September 30, 2017			Three Months Ended						Six Months Ended
	September 30, 2018			September 30, 2017						June 30, 2019					June 30, 2018			June 30, 2019			June 30, 2018
Investment income
Interest income	$	1,944		$	1,554		$	5,566			$	2,048		$	480		$	1,888		$	3,028		$	3,622
Dividend income	—			—			—				—			—			—			—			—
Fee income	—			—			—				—			—			—			—			—
Other income	—			—			—				—			—			—			—			—
Total investment income	1,944			1,554			5,566				2,048			480			1,888			3,028			3,622
Expenses
Interest expense	988			615			2,759				866			883			921			2,130			1,771
Other expenses	—			2			1				34			—			2			—			2
General and administrative expenses	20			24			67				45			25			26			36			47
Total expenses	1,008			641			2,827				945			908			949			2,166			1,820
Net investment income	936			913			2,739				1,103
Net investment income (loss)														(428		)	939			862			1,802
Net realized loss from investments	(17		)	(16		)	(392		)		(17		)	(1,513		)	(348		)	(1,514		)	(374		)
Net realized income	919			897			2,347				1,086
Net realized income (loss)														(1,941		)	591			(652		)	1,428
Net change in unrealized appreciation (depreciation) on investments	1,013			—			15				(226		)	2,008			(939		)	6,647			(998		)
Net increase in net assets resulting from operations	$	1,932		$	897		$	2,362			$	860
Net increase (decrease) in net assets resulting from operations														$	67		$	(348	)	$	5,995		$	430

PORTFOLIO ASSET QUALITY

As of ~~September~~June 30, ~~2018,~~2019, we owned a broad portfolio of ~~196~~207 investments in ~~129~~128 companies representing a wide range of industries. We believe that this broad portfolio adds to the structural protection of the portfolio, revenue sources, income, cash flows and dividends. The portfolio included the following:

▪

5041 debt investments in 5038 Middle Market portfolio companies with an aggregate fair value of approximately ~~$482.2~~$330.2 million and a cost basis of approximately ~~$491.8~~$361.9 million. The Middle Market debt investments had a weighted average annual effective yield of approximately ~~9.4%~~9.6%, which is calculated assuming the investments on non-accrual status have a zero yield, and ~~82.6%~~85.7% of the Middle Market debt investments were secured by first priority liens. Further, ~~92.9%~~97.9% of the Middle Market debt investments contain variable interest rates, though a majority of the investments with variable rates are subject to contractual minimum base interest rates between 100 and 150 basis points.

▪

4553 debt investments in 4048 Private Loan portfolio companies with an aggregate fair value of approximately ~~$377.6~~$442.8 million and a cost basis of approximately ~~$378.4~~$444.1 million. The Private Loan debt investments had a weighted average annual effective yield of approximately ~~9.9%~~10.2%, which is calculated assuming the investments on non-accrual status have a zero yield, and ~~92.3%~~91.1% of the Private Loan debt investments were secured by first priority liens. Further, ~~94.7%~~95.1% of the Private Loan debt investments contain variable interest rates, though a majority of the investments with variable interest rates are subject to contractual minimum base interest rates between 100 and 150 basis points.

▪

3739 debt investments in 2831 LMM portfolio companies with an aggregate fair value of approximately ~~$123.5~~$130.0 million and a cost basis of approximately ~~$123.5~~$130.6 million. The LMM debt investments had a weighted average annual effective yield of approximately ~~12.6%~~12.2%, and ~~100.0%~~99.3% of the debt investments were secured by first priority liens. Also, ~~44.0%~~50.4% of the LMM debt investments are fixed rate investments with fixed interest rates between ~~4.2%~~5.0% and ~~17.0%~~14.0%. Also, 2926 LMM debt investments, representing approximately ~~56.0%~~49.6% of the LMM debt investments have variable interest rates subject to a contractual minimum base interest rate of 100 basis points.


▪	5768 equity investments and ~~seven~~six equity warrant investments in 2830 LMM portfolio companies, 1012 Private Loan portfolio companies, five Middle Market portfolio companies and ~~six~~seven Other Portfolio companies with an aggregate fair value of approximately ~~$147.1~~$165.2 million and a cost basis of approximately ~~$127.3~~$137.2 million.

Overall, as of ~~September~~June 30, ~~2018,~~2019, our investment portfolio had a weighted average effective yield on our investments of approximately ~~9.2%~~9.4%, and ~~77.0%~~76.4% of our total portfolio’s investments (including our Other Portfolio investments) were secured by first priority liens.

As of ~~September~~June 30, 2019, we had seven investments in four portfolio companies that were on non-accrual status, which comprised approximately 0.9% of our total investment portfolio at fair value and 1.7% of the total investment portfolio at cost. As of December 31, 2018, we had five investments in three portfolio companies that were on non-accrual status, which comprised approximately 0.3% of our total investment portfolio at fair value and 0.9% of the total investment portfolio at cost. As of December 31, 2017, we had four investments in three portfolio companies that were on non-accrual status, which comprised approximately 0.2%0.4% of the total investment portfolio at fair value and ~~0.9%~~0.6% of the total investment portfolio at cost. For those investments in which S&P credit ratings are available, which represents approximately ~~34.8%~~29.5% of the portfolio as of ~~September~~June 30, ~~2018,~~2019, the portfolio had a weighted average effective credit rating of B.

We utilize a rating system developed by our Sub-Adviser to rate the performance of each of our LMM portfolio companies. The investment rating system takes into consideration various factors, including each investment’s expected level of returns, collectability, comparisons to competitors and other industry participants, and the portfolio company’s future outlook.

Investment Rating 1 represents a LMM portfolio company that is performing in a manner which significantly exceeds expectations.

Investment Rating 2 represents a LMM portfolio company that, in general, is performing above expectations.

Investment Rating 3 represents a LMM portfolio company that is generally performing in accordance with expectations. All new LMM portfolio investments receive an initial Investment Rating 3.

Investment Rating 4 represents a LMM portfolio company that is underperforming expectations, requiring increased monitoring and scrutiny by us.

Investment Rating 5 represents a LMM portfolio company that is significantly underperforming, requiring heightened levels of monitoring and scrutiny by us and involves the recognition of significant unrealized depreciation on such investment.

The following table shows the distribution of our LMM portfolio investments on the 1 to 5 investment rating system of our Sub-Adviser at fair value as of ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017~~2018 (dollars in thousands):


	September 30, 2018				December 31, 2017				June 30, 2019				December 31, 2018
Investment Rating	Investments at Fair Value		Percentage of Total LMM Portfolio		Investments at Fair Value		Percentage of Total LMM Portfolio		Investments at Fair Value		Percentage of Total LMM Portfolio		Investments at Fair Value		Percentage of Total LMM Portfolio
1	$	50,607	26.0	%	$	2,940	2.2	%	$	68,419	31.4	%	$	56,937	27.1	%
2	5,303		2.7		47,155		34.8		21,859		10.0		15,038		7.1
3	123,453		63.5		79,655		58.7		78,054		35.8		124,397		59.2
4	15,236		7.8		5,439		4.0		49,492		22.7		10,718		5.1
5	—		—		468		0.3		—		—		3,184		1.5
Total	$	194,599	100.0	%	$	135,657	100.0	%	$	217,824	99.9	%	$	210,274	100.0	%

Based upon this investment rating system, the weighted average rating of our LMM portfolio at fair value was approximately 2.5 ~~and 2.7~~ as of both ~~September~~June 30, ~~2018~~2019 and December 31, ~~2017~~2018~~, respectively.~~.

DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS

RESULTS COMPARISONS FOR THE THREE MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2018~~2019 AND ~~SEPTEMBER~~JUNE 30, ~~2017~~2018

Total Investment Income, ~~Operating~~ Expenses, Net Assets

For the three months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, our total investment income was approximately ~~$30.9~~$28.6 million and ~~$25.3~~$27.0 million, respectively, consisting predominately of interest income and dividend income. The increase in total investment income was primarily driven by an increase in interest income of approximately $800,000 and an increase in dividend income of approximately $1.4 million. The increase in interest income was primarily due to (i) the growth in our total portfolio resulting from borrowings under our amended and restated senior secured revolving credit facility (the “TIAA Credit Facility”) entered into by us, HMS Equity Holding and HMS Equity Holding II, our wholly owned subsidiaries, with TIAA, FSB (formerly EverBank Commercial Finance, Inc. prior to June 18, 2018) (“TIAA Bank”) as administrative agent and certain financial institutions as lenders, and the amended and restated credit agreement entered into by HMS Funding I, our wholly owned subsidiary, with Deutsche Bank AG, New York Branch as administrative agent (the “Deutsche Bank Credit Facility,” and, together with our TIAA Credit Facility, the “Credit Facilities”) and (ii) an increase in the weighted average annual effective yield on investments. As of ~~September~~June 30, ~~2018,~~2019, our portfolio had a weighted average annual effective yield on investments of approximately ~~9.2%~~9.4% compared to ~~8.5%~~9.2% as of ~~September~~June 30, ~~2017,~~2018. Such increase was largely the result of a greater concentration of higher yielding Private Loan and LMM debt investments in our ~~average investment~~ portfolio ~~for the three months ended September 30, 2018 was $1,117.0 million compared to $1,067.8 million for the three months ended September 30, 2017. Additionally,~~ during the three months ended ~~September~~June 30, ~~2018 and 2017, we accreted approximately $4.0 million and $2.9 million, respectively,~~2019 compared to the three months ended June 30, 2018. The dividend income increase is primarily due to improving performance of ~~unearned income into interest income. For information on the Credit Facilities, see Note 5 -~~ ~~Borrowings~~ tocertain of our ~~condensed consolidated financial statements included elsewhere in this report.~~LMM equity investments.

For the three months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, we recognized ~~$781,000~~$161,000 and ~~$213,000,~~$724,000, respectively, of non-recurring fee income received from our portfolio companies or other third parties, which accounted for approximately ~~2.5%~~0.6% and ~~0.8%~~2.7%, respectively, of our total investment income during such periods. Such fee income is transaction based and typically consists of prepayment fees, structuring fees, amendment and consent fees and other non-recurring fees. As such, future fee income is generally dependent on new direct origination investments and the occurrence of prepayments and other events at existing portfolio companies resulting in such fees.

For the three months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, expenses, net of ~~incentive fee and~~internal administrative services expense waivers, were approximately ~~$13.1~~$14.7 million and ~~$12.3~~$12.6 million, respectively. The increase in expenses is primarily due to ~~an increase~~increases in incentive fees of $1.3 million and interest expense of ~~$1.6~~$514,000. For the three months ended June 30, 2019, the Advisers earned a subordinated incentive fee on income of $1.3 million, ~~offset by a decrease in offering costs of $0.8 million.~~while no such fee was earned for the three months ended June 30, 2018. Interest expense ~~increased primarily~~was higher for the three months ended June 30, 2019 due to an increase in our average borrowings of approximately $53.5 million during the period and an increase in our cost of borrowing on the Credit Facilities. Average borrowings under the Credit Facilities were $507.0 million for the three months ended September 30, 2018 compared to $453.5 million for the three months ended September 30, 2017. As of September 30, 2018 and 2017, the annualized interest rate on our borrowings, ~~was 4.8% and 4.0.%, respectively. Reimbursement~~from approximately 4.7% as of ~~offering costs~~June 30, 2018 to ~~our Adviser decreased due to the termination~~approximately 5.0% as of ~~our Offering effective September~~June 30, ~~2017.~~2019.

For the three months ended ~~September~~June 30, 2019, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately $11.8 million. The increase was attributable to net investment income of approximately $14.0 million, offset by unrealized depreciation on investments of approximately $2.3 million.

For the three months ended June 30, 2018, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately $23.8 million. The increase was attributable to (i) net investment income of approximately $17.8 million and (ii) net change in unrealized appreciation on investments of approximately $14.9 million, offset by realized losses on investments of approximately $8.9 million.

~~For the three months ended September 30, 2017, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately $8.7~~$12.2 million. The increase was primarily attributable to ~~(i)~~ net investment income of approximately ~~$13.0 million and (ii) realized gains of approximately $0.7~~$14.4 million, offset by ~~net change in~~ unrealized depreciation on investments of approximately ~~$5.1 million.~~$1.5 million and net realized loss on investments of approximately $536,000.

RESULTS COMPARISONS FOR THE ~~NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2018~~2019 AND ~~SEPTEMBER~~JUNE 30, ~~2017~~2018

Total Investment Income, Operating Expenses, Net Assets

For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, our total investment income was approximately ~~$85.0~~$57.8 million and ~~$76.2~~$51.0 million, respectively, consisting predominately of interest income and dividend income. The increase in total investment income was primarily driven by an increase in interest income of approximately $4.9 million and an increase in dividend income of approximately $2.5 million. The increase in interest income was primarily due to ~~(i) the growth in our total portfolio resulting from borrowings under the Credit Facilities and (ii)~~ an increase in the weighted average annual effective yield on investments. As of ~~September~~June 30, ~~2018, the~~2019, our portfolio had a weighted average annual effective yield on investments of approximately ~~9.2%~~9.4% compared to ~~8.5%~~9.2% as of ~~September~~June 30, ~~2017,~~2018. Such increase was largely the result of a greater concentration of higher yielding Private Loan and LMM investments in our ~~average~~ investment portfolio ~~for~~during the ~~nine~~six months ended ~~September~~June 30, ~~2018 was $1,087.8 million~~2019 compared to ~~$1,021.0 million for~~ the ~~nine~~six months ended ~~September~~June 30, ~~2017. Additionally, during the nine months ended September 30, 2018 and 2017, we accreted approximately $11.4 million and $10.8 million, respectively,~~2018. Dividend income increased primarily due to improving performance of ~~unearned income into interest income.~~certain of our Lower Middle Market equity investments.

For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, we recognized ~~$1.8 million~~$522,000 and ~~$1.9~~$1.1 million, respectively, of non-recurring fee income received from our portfolio companies or other third parties, which accounted for approximately ~~2.2%~~0.9% and ~~2.5%~~2.1%, respectively, of our total investment income during such period. Such fee income is transaction based and typically consists of prepayment fees, structuring fees, amendment and consent fees and other non-recurring fees. As such, future fee income is generally dependent on new direct origination investments and the occurrence of prepayments and other events at existing portfolio companies resulting in such fees.

For the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, expenses, net of ~~incentive fee and~~internal administrative services expense waivers, were approximately ~~$37.6~~$30.0 million and ~~$33.0~~$24.5 million, respectively. The increase in expenses is primarily due to ~~(i)~~an increase in incentive fees of $2.7 million and an increase in interest expense of ~~$4.5~~$2.5 million. For the six months ended June 30, 2019, the Advisers earned a $2.7 million ~~and (ii) an increase in base management fees and~~subordinated incentive ~~fees (net of~~ fee ~~waivers) of $1.2 million, offset by a decrease in offering costs of approximately $1.4 million. Base management fees and incentive fees (net of~~on income, while no such fee ~~waivers) increased primarily due to an increase in our average gross assets.~~was earned for the six months ended June 30, 2018. Interest expense increased primarily due to an increase in our average borrowings of approximately ~~$49.0~~$25.0 million during the period and an increase in our cost of borrowing on the Credit Facilities. Average borrowings under the Credit Facilities were ~~$475.5~~$489.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 compared to ~~$426.5~~$464.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017.~~2018. As of ~~September~~June 30, ~~2018~~2019 and ~~2017,~~2018, the annualized interest rate on borrowings was ~~4.8%~~5.0% and ~~4.0%~~4.7%, respectively.

For the ~~nine~~six months ended ~~September~~June 30, 2019, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately $30.6 million. The increase was attributable to (i) net investment income of approximately $27.8 million and (ii) net unrealized appreciation on investments of approximately $9.7 million, offset by realized losses on investments of approximately $6.9 million.

For the six months ended June 30, 2018, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately ~~$51.6~~$27.8 million. The increase was attributable to (i) net investment income of approximately ~~$47.4~~$26.5 million and (ii) ~~net~~ unrealized appreciation on investments of approximately ~~$24.0~~$9.1 million, offset by net realized losses ~~on investments~~ of approximately ~~$19.8~~$7.8 million.

For the nine months ended September 30, 2017, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately $39.4 million. The increase was attributable to (i) net investment income of approximately $43.2 million and (ii) net realized gains of approximately $3.4 million, offset by unrealized depreciation on investments of approximately $7.2 million. The realized gains were primarily the result of the exit of one Private Loan equity investment and one Other Portfolio investment.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Overview

As of ~~September~~June 30, ~~2018,~~2019, we had approximately ~~$23.7~~$20.7 million in cash and cash equivalents, which we held in various custodial accounts. In addition, as of ~~September~~June 30, ~~2018,~~2019, we had ~~$60.0~~$112.0 million in capacity available under the Credit Facilities, in the aggregate. To seek to enhance our returns, we intend to continue to employ leverage as market conditions permit and at the discretion of our Adviser, ~~but in no event will leverage employed exceed 50% of the value of our total assets, which is the maximum we are allowed~~subject to ~~borrow~~asset coverage restrictions under the 1940 Act. See “Financial Condition, Liquidity and Capital Resources -— Financing Arrangements.”

As of ~~September~~June 30, ~~2018,~~2019, we had 3342 senior secured loan investments and four equity investments with aggregate unfunded commitments of ~~$39.9~~$38.4 million. We believe that we maintain sufficient cash and cash equivalents on hand and available borrowings to fund such unfunded commitments should the need arise.

We currently generate cash primarily from interest, dividends and fees earned on our investments, principal repayments and proceeds from the sales of our investments and the net proceeds of the issuance of shares under our distribution reinvestment plan.

Prior to investing in securities of portfolio companies, we invest the net proceeds from the issuance of shares of common stock under our distribution reinvestment plan and from sales and pay-downs of existing investments primarily in cash, cash equivalents, U.S. government securities, repurchase agreements and high-quality debt instruments maturing in one year or less from the time of investment, consistent with our BDC election and our election to be taxed as a RIC.

Liquidity and Capital Resources

Cash Flows

For the ~~nine~~six months ended ~~September~~June 30, 2019, we experienced a net decrease in cash and cash equivalents of approximately $1.1 million. During that period, approximately $77.8 million of cash was generated from our operating activities, which principally consisted of principal repayments from and sales of investments in portfolio companies of $191.5 million and a net increase in net assets resulting from operations of approximately $30.6 million, offset by the purchase of new portfolio investments of $138.8 million. During the six months ended June 30, 2019, approximately $78.9 million was used in financing activities, which principally consisted of a net $51.0 million decrease in borrowings under the Credit Facilities, $13.0 million used for the redemption of our common stock and $14.8 million in cash distributions paid to stockholders.

For the six months ended June 30, 2018, we experienced a net decrease in cash and cash equivalents of approximately ~~$22.1~~$8.2 million. During that period, approximately ~~$52.9~~$48.3 million of cash was used in our operating activities, which principally consisted of the purchase of new portfolio investments of ~~$476.5~~$314.3 million and accretion of unearned income of ~~$11.4~~$4.3 million, offset by principal repayments from and sales of investments in portfolio companies of ~~$386.1~~$243.1 million and a net increase in net assets resulting from operations of approximately ~~$51.6~~$27.8 million. During the ~~nine~~six months ended ~~September~~June 30, 2018, approximately ~~$30.8~~$40.2 million was generated from financing activities, which principally consisted of a net ~~$80.0~~$74.0 million increase in borrowings under the Credit Facilities, offset by ~~$27.6~~$19.6 million in cash used for the redemption of our common stock and ~~$21.3~~$14.1 million in cash distributions paid to stockholders.

For the nine months ended September 30, 2017, we experienced a net increase in cash and cash equivalents of approximately $16.0 million. During that period, approximately $68.5 million of cash was used in our operating activities, which principally consisted of the purchase of new portfolio investments of $470.9 million and accretion of unearned income of $10.8 million, offset by principal repayments from and sales of investments in portfolio companies of $370.9 million and a net increase in net assets resulting from operations of approximately $39.4 million. During the nine months ended September 30, 2017, approximately $84.5 million was generated from financing activities, which principally consisted of $41.6 million in net stock offering proceeds received and a net $77.0 million increase in borrowings under the Credit Facilities, offset by $19.5 million in cash distributions paid to stockholders and $14.0 million in cash used for the redemption of our common stock.

Continuous Public Offering

With the approval of our board of directors, we closed the Offering to new investors effective September 30, 2017. During the ~~nine~~six months ended ~~September~~June 30, ~~2018,~~2019, we raised proceeds of ~~$20.5~~$12.7 million from our distribution reinvestment plan.

During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, we raised proceeds of ~~$66.6~~$13.8 million ~~from the Offering, including proceeds~~ from our distribution reinvestment ~~plan, and incurred $3.7 million for selling commissions and Dealer Manager fees. We also incurred an obligation for $1.0 million of costs related to the Offering during the period.~~plan.

Distributions

The following table reflects the cash distributions per share that we have declared on our common stock during the ~~nine~~six months ended ~~September~~June 30, ~~2018~~2019 and ~~2017~~2018 (dollars in thousands except per share amounts).



	Distributions
	Per Share		Amount
2019
Three months ended June 30, 2019	$	0.18	$	13,754
Three months ended March 31, 2019	$	0.17	$	13,606
2018
Three months ended June 30, 2018	$	0.18	$	13,855
Three months ended March 31, 2018	$	0.17	$	13,803

On ~~September 14, 2018,~~June 26, 2019, with the authorization of our board of directors, we declared distributions to our stockholders for the period of ~~October 2018~~July 2019 through ~~December 2018.~~September 2019. These distributions have been, or will be, calculated based on stockholders of record each day from ~~October~~July 1, ~~2018~~2019 through ~~December 31, 2018~~September 30, 2019 in an amount equal to $0.00191781 per share, per day. Distributions are paid on the first business day following the completion of each month to which they relate.

For the years ending December 31, 2018, 2017 ~~2016~~ and ~~2015,~~2016, respectively, the tax characteristics of distributions paid to shareholders were as follow (amounts in thousands):


	Year Ended December 31,												Year Ended December 31,
Tax Characteristics of Distributions	2017				2016				2015				2018				2017				2016

Ordinary income	$	52,473	96.43	%	$	44,848	93.90	%	$	34,085	99.68	%	$	50,274	90.56	%	$	52,473	96.43	%	$	44,848	93.90	%
Capital gain distributions	1,941		3.57		2,913		6.10		110		0.32		5,238		9.44		1,941		3.57		2,913		6.10
Total	$	54,414	100.00	%	$	47,761	100.00	%	$	34,195	100.00	%	$	55,512	100.00	%	$	54,414	100.00	%	$	47,761	100.00	%

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, a determination made on an interim basis may not be representative of the actual tax attributes of distributions for a full year. If we had determined the tax attributes of our distributions taxable year-to-date as of ~~September~~June 30, ~~2018,~~2019, 100% would be from our current and accumulated earnings and profits. However, there can be no certainty to stockholders that this determination is representative of what the actual tax attributes of our fiscal and taxable years ending December 31, ~~2018~~2019 distributions to stockholders will be. The actual tax characteristics of distributions to stockholders will be reported to the Internal Revenue Service and stockholders subject to information reporting after the close of each calendar year on Form 1099-DIV.

We have adopted an “opt in” distribution reinvestment plan for our stockholders. As a result, if we make a distribution, our stockholders will receive distributions in cash unless they specifically “opt in” to the distribution reinvestment plan so as to have their cash distributions reinvested in additional shares of our common stock.

We may fund our cash distributions from any sources of funds legally available, including stock offering proceeds, if any, 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 Advisers. We have not established ~~any limit~~limits on the ~~extent to which~~amount of funds that we may use ~~borrowings or stock offering proceeds~~from legally available sources to ~~fund~~make distributions. Our distributions may exceed our earnings. As a result, a portion of the distributions we make may represent a return of capital for U.S. federal income tax purposes.

The timing and amount of any future distributions to stockholders are subject to applicable legal restrictions and the sole discretion of our board of directors.

In order to satisfy the Code’s requirements applicable to entities subject to tax as RICs, we are required to distribute substantially all of our taxable income to our stockholders on an annual basis. However, we may elect to spill over certain excess undistributed taxable income from one taxable year into the next taxable year, which may require us to incur a 4% nondeductible U.S. federal excise tax on such excess undistributed taxable income. In order to avoid the imposition of the 4% nondeductible excise tax, we need to distribute, in respect of each calendar year dividends for U.S. federal income tax purposes of an amount at least equal to the sum of (1) 98.0% of our net ordinary income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gain in excess of capital loss, or capital gain net income, adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of such calendar year (or, if we so elect, for the calendar year) and (3) any net ordinary income and capital gain net income for the preceding calendar years that was not distributed during such calendar years and on which we incurred no U.S. federal income tax.

Financing Arrangements

We anticipate that we will continue to fund our investment activities through existing cash, capital raised from our stock offerings, if any, proceeds from our dividend reinvestment plan and borrowings on the Credit Facilities. However, with the approval of our board of directors, we closed the Offering to new investors effective September 30, 2017. Our primary uses of funds in both the short-term and long-term are expected to be investments in portfolio companies, operating expenses and cash distributions to holders of our common stock.

As of ~~September~~June 30, ~~2018,~~2019, we had $120.0 million outstanding and no availability under our TIAA Credit Facility, and ~~$390.0~~$338.0 million outstanding and ~~$60.0~~$112.0 million available under the Deutsche Bank Credit Facility, both of which we estimated approximated fair value. Availability under each of the Credit Facilities is subject to certain limitations and the asset coverage restrictions under the 1940 Act. For further information on our Credit Facilities, including key terms and financial covenants, refer to Note ~~5 -~~6 — Borrowings to the consolidated financial statements included in our Annual Report on Form 10-K (as amended) for the year ended December 31, ~~2017~~2018 as well as Note ~~5 -~~6 — Borrowings to the condensed consolidated financial statements included elsewhere in this Report.

As a BDC, we ~~have historically been~~are able to issue “senior securities,” including borrowing money from banks or other financial institutions, only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence

or issuance. ~~In March 2018, the~~The Small Business Credit Availability Act, ~~(the “SBCAA”) was~~ enacted into ~~law. The SBCAA,~~law in March 2018, among other things, amended the 1940 Act to reduce the asset coverage requirement applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements, obtains certain approval and, in the case of unlisted BDCs, makes an offer to repurchase shares held by its stockholders as of the date of the requisite approval. Effectiveness of the reduced asset coverage requirements to a BDC requires approval by either (1) a “required majority” (as defined in Section 57(o) of the 1940 Act) of such BDC’s board of directors with effectiveness one year after the date of such approval or (2) a majority of the votes cast at a special or annual meeting of such BDC’s stockholders at which a quorum is present, which is effective the day after such stockholder approval. The Company has not requested or obtained either such approval. As of ~~September~~June 30, 2019 and December 31, 2018, our asset coverage ratio under BDC regulations was 218% when assuming our unfunded commitments are treated as senior securities. As of December 31, 2017, our asset coverage ratio under BDC regulations was 236% when assuming our unfunded commitments are treated as senior securities.237% and 223%, respectively.

Although in the past we have been able to secure access to potential additional liquidity, through proceeds from the Offering and also by entering into the Credit Facilities, there is no assurance that equity or debt capital will be available to us in the future on favorable terms, or at all.

~~Related-Party~~Related Party Transactions and Agreements

We have entered into agreements with our Adviser, our Sub-Adviser and our Dealer Manager, whereby we pay certain fees and reimbursements to these entities. These included payments to our Dealer Manager for selling commissions and the Dealer Manager fee and include payments to our Adviser for reimbursement of offering costs. In addition, we make payments for certain services that include the identification, execution, and management of our investments and also the management of our day-to-day operations provided to us by our Adviser and Sub-Adviser, pursuant to various agreements that we have entered into. See Note ~~10 -~~11 — Related Party Transactions and Arrangements to the financial statements included elsewhere in this Report for additional information regarding related party transactions.

Contractual Obligations

As of ~~September~~June 30, ~~2018,~~2019, we had ~~$510.0~~$458.0 million in borrowings outstanding under the Credit Facilities. Our TIAA Credit Facility will mature March 6, 2020, with two one-year extension options, subject to lender approval, and the Deutsche Bank Credit Facility will mature on November 20, 2022. See Note ~~5 -~~6 — Borrowings to the financial statements included elsewhere in this Report for a description of the Credit Facilities.

A summary of our significant contractual payment obligations for the repayment of outstanding borrowings at ~~September~~June 30, ~~2018~~2019 is as follows:


	Payments Due By Period (dollars in thousands)										Payments Due By Period (dollars in thousands)
	Total		Less than 1 year		1-3 years		3-5 years		After 5 years		Total		Less than 1 year		1-3 years		3-5 years		After 5 years
TIAA Credit Facility ⁽¹⁾	$	120,000	$	—	$	120,000	$	—	$	—	$	120,000	$	120,000	$	—	$	—	$	—
Deutsche Bank Credit Facility ⁽²⁾	390,000		—		—		390,000		—		338,000		—		—		338,000		—
Total Credit Facilities	$	510,000	$	—	$	120,000	$	390,000	$	—	$	458,000	$	120,000	$	—	$	338,000	$	—


(1)	At ~~September~~June 30, ~~2018,~~2019, we had no availability under our TIAA Credit Facility.


(2)	At ~~September~~June 30, ~~2018, $60.0~~2019, $112.0 million remained available under the Deutsche Bank Credit Facility; however, our borrowing ability is limited to the asset coverage ~~ratio~~ restrictions imposed by the 1940 Act, as discussed above.

Off-Balance Sheet Arrangements

As of ~~September~~June 30, 2019, we had a total of approximately $38.4 million in outstanding commitments comprised of (i) 42 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. We recognized unrealized appreciation of approximately $306,000 on our outstanding unfunded loan commitments and no unrealized appreciation or depreciation on our outstanding unfunded capital commitments during the six months ended June 30, 2019. We reasonably believe that we maintain sufficient assets and available borrowings to adequately cover and allow us to satisfy our outstanding unfunded commitments should the need arise. At December 31, 2018, we had a total of approximately ~~$39.9~~$62.5 million in outstanding commitments comprised of (i) 3336 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. We recognized unrealized depreciation of approximately $212,000 on our outstanding unfunded loan commitments and no unrealized appreciation or depreciation on our outstanding unfunded capital commitments during the nine months ended September 30, 2018. We reasonably believe that we maintain sufficient assets and available borrowings to adequately cover and allow us to satisfy our outstanding unfunded commitments should the need arise. At December 31, 2017, we had a total of approximately $45.4 million in outstanding commitments comprised of (i) 28 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. We recognized unrealized appreciation of approximately $14,000$132,000 on our outstanding unfunded loan commitments and no unrealized appreciation or depreciation on our outstanding unfunded capital commitments during the year ended December 31, ~~2017.~~2018. We had equity commitments of up to $30.0 million to HMS-ORIX, which were fully funded as of ~~each of September~~June 30, ~~2018~~2019 and December 31, ~~2017.~~2018.



	Commitments and Contingencies
	(dollars in thousands)
	June 30, 2019		December 31, 2018
Unfunded Loan Commitments
Adams Publishing Group, LLC	$	762	$	1,735
Aethon United BR LP	938		—
American Nuts, LLC	281		1,266
Apex Linen Services, Inc.	—		403
Arcus Hunting, LLC	530		904
ASC Ortho Management Company, LLC	750		750
BarFly Ventures, LLC	—		123
BBB Tank Services	40		200
BigName Holdings, LLC	29		29
Boccella Precast Products, LLC	500		500
Centre Technologies Holdings, LLC	600		—
Chamberlin HoldCo, LLC	400		400
Charps, LLC	—		1,000
Chisholm Energy Holdings, LLC	1,429		—
Clad-Rex Steel, LLC	—		100
CTVSH, PLLC	200		200
Direct Marketing Solutions, Inc.	400		400
DTE Enterprises, LLC	750		750
Dynamic Communities, LLC	250		250
Gamber-Johnson Holdings, LLC	300		300
GRT Rubber Technologies, LLC	2,393		4,125
Guerdon Modular Holdings, Inc.	284		400
Hawk Ridge Systems, LLC	—		400
HDC/HW Intermediate Holdings, Inc.	118		180
Hoover Group, Inc.	550		2,375
HW Temps LLC	200		200
Implus Footcare, LLC	—		44
Independent Pet Partners Intermediate Holdings, LLC	10,593		22,244
Joerns Healthcare, LLC	944		—
KMC Acquisition, LLC	500		500
Laredo Energy VI, LP	1,250		—
Market Force Information, Inc.	23		350
Meisler Operating, LLC	160		400
Mystic Logistics Holdings, LLC	200		200
New Era Technology, Inc.	—		479
NexRev, LLC	1,000		1,000

Commitments and Contingencies
(dollars in thousands)
September 30, 2018 December 31, 2017
Unfunded Loan Commitments
Adams Publishing Group, LLC $ 3,035
$ —
American Nuts, LLC 1,266
—
Apex Linen Services, Inc. 403
403
Arcus Hunting, LLC 60
976
ASC Ortho Management Company, LLC 750
—
BarFly Ventures, LLC 245
613
BBB Tank Services 37
—
BigName Holdings, LLC 29
101
Boccella Precast Products, LLC 360
500
CDHA Management, LLC —
2,343
Chamberlin HoldCo, LLC 400
—
Charps, LLC 600
1,000
Clad-Rex Steel, LLC 100
100
CTVSH, PLLC 200
200
Datacom, LLC —
25
Direct Marketing Solutions, Inc. 400
—
DTE Enterprises, LLC 750
—
Dynamic Communities, LLC 250
—
Felix Investments Holdings II LLC —
1,667
Gamber-Johnson Holdings, LLC 300
300
GST Autoleather Inc. —
1,281
Guerdon Modular Holdings, Inc. 400
400
Hawk Ridge Systems, LLC 400
400
Hojeij Branded Foods, Inc. 1,588
1,923
Hoover Group, Inc. 2,113
—
Hostway Corporation —
7
HW Temps LLC 200
200
Implus Footcare, LLC 42
—
LaMi Products, LLC —
294
Market Force Information, Inc. 300
400
Meisler Operating, LLC 400
400
Mystic Logistics Holdings, LLC 200
200
New Era Technology, Inc. 479
—
NexRev, LLC 1,000
—
NNE Partners, LLC 2,042
5,542
NuStep, LLC 300
300
Permian Holdco 2, Inc. —
97
PPC/Shift, LLC —
500
Resolute Industrial LLC —
5,750
SI East , LLC 2,500
—
Volusion LLC 1,961
—
Wireless Vision Holdings, LLC 2,100
2,084
Unfunded Capital Commitments
Brightwood Capital Fund III, LP 1,000
1,000
Brightwood Capital Fund IV, LP 8,000
9,000
Copper Trail Energy Fund I LP 1,754
2,500
Freeport Financial Funds 3,942
4,941
Total $ 39,906
$ 45,447



	Commitments and Contingencies
	(dollars in thousands)
	June 30, 2019		December 31, 2018
NuStep, LLC	$	300	$	300
SI East , LLC	2,500		2,500
Tedder Acquisition, LLC	100		180
Trantech Radiator Topco, LLC	400		—
Volusion LLC	—		1,961
Wireless Vision Holdings, LLC	—		693
Unfunded Capital Commitments
Brightwood Capital Fund III, LP	1,080		1,000
Brightwood Capital Fund IV, LP	3,000		8,000
Copper Trail Energy Fund I LP	2,689		1,754
Freeport Financial Funds	1,945		3,942
Total	$	38,388	$	62,537

Recent Developments and Subsequent Events

On ~~October 10, 2018,~~July 8, 2019, we filed a tender offer statement on Schedule TO with the SEC to commence an offer by us to purchase, as approved by our board of directors, an estimated ~~825,530.42~~797,922.06 shares of our issued and outstanding common stock, par value $0.001 per share, at up to approximately ~~$6.7~~$6.4 million. The offer is for cash at a purchase price equal to the NAV per share to be determined within 48 hours of the repurchase date.

On October 31, 2018, we, the Adviser and the Sub-Adviser entered into a conditional income incentive fee agreement (the “Third Quarter 2018 Fee Waiver Agreement”), pursuant to which, for a period from July 1, 2018 through September 30, 2018, the Advisers would waive payments in respect of the “subordinated incentive fee on income,” as such term is defined in the Investment Advisory Agreement, upon the occurrence of any event that, in the Advisers’ sole discretion, causes such waiver to be deemed necessary. The Third Quarter 2018 Fee Waiver Agreement may require us to repay previously waived Expense Support Payments or waived base management fees or incentive fees under certain circumstances. The previously waived fees are potentially subject to repayment by us, if at all, within a period not to exceed three years from the date of each respective fee waiver.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, in particular changes in interest rates. Changes in interest rates may affect our interest income from portfolio investments, the fair value of our fixed income investments, and our cost of funding.

Our interest income will be affected by changes in various interest rates, including LIBOR and prime rates, to the extent any of our debt investments include floating interest rates. We generally invest in floating rate debt instruments, meaning that the interest rate payable on such instrument resets periodically based upon changes in a specified interest rate index, typically the one-month or three-month LIBOR. As of ~~September~~June 30, ~~2018,~~2019, approximately ~~88.3%~~89.5% of our LMM, Private Loan, and Middle Market portfolio debt investments (based on cost) contained floating interest rates. As of ~~September~~June 30, ~~2018,~~2019, the one-month LIBOR was approximately ~~2.26%~~2.40% and the three-month LIBOR was approximately ~~2.40%~~2.32%. ~~However, many~~Many of our investments provide that the specified interest rate index on such instruments will never fall below a level, or floor, generally between 100 and 150 basis points regardless of the level of the specified index rate, which minimizes the negative impact to our interest income that would result from a decline in index rates.

In addition, any fluctuations in prevailing interest rates may affect the fair value of our fixed rate debt instruments and result in changes in unrealized gains and losses, and may also ~~effect~~affect a net increase or decrease in net assets resulting from operations. Such changes in unrealized appreciation and depreciation will materialize into realized gains and losses if we sell our investments before their respective debt maturity dates.

Further, because we borrow money to make investments, our net investment income is partially dependent upon the difference between the interest rate at which we invest borrowed funds and the interest rate at which we borrow funds. In periods of rising interest rates and when we have borrowed capital with floating interest rates, our interest expense will increase, which will increase our financing costs and reduce our net investment income, especially to the extent we hold fixed-rate debt investments. 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.

The following table shows the approximate annualized increase or decrease (dollars in thousands) in the components of net investment income due to hypothetical interest rate index changes, assuming no changes in our investments and borrowings as of ~~September~~June 30, ~~2018.~~2019.


Change in interest rates	Increase (Decrease) in Interest Income			Increase (Decrease) in Interest Expense			Net Increase (Decrease) in Net Investment Income			Increase (Decrease) in Interest Income			Increase (Decrease) in Interest Expense			Net Increase (Decrease) in Net Investment Income
Down 200 basis points										$	(10,915	)	$	(9,160	)	(1,755	)
Down 100 basis points	$	(8,769	)	$	(5,100	)	$	(3,669	)	(8,355		)	(4,580		)	(3,775	)
Down 50 basis points	(4,394		)	(2,550		)	(1,844		)	(4,217		)	(2,290		)	(1,927	)
Up 50 basis points	4,418			2,550			1,868			4,253			2,290			1,963
Up 100 basis points	8,836			5,100			3,736			8,506			4,580			3,926
Up 200 basis points	17,671			10,200			7,471			17,012			9,160			7,852
Up 300 basis points	26,507			15,300			11,207

Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments, including borrowing under the Credit Facilities or other borrowings, that could affect net increase in net assets resulting from operations, or net income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above.

If deemed prudent, we may use interest rate risk management techniques in an effort to minimize our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. As of ~~September~~June 30, ~~2018,~~2019, we had not entered into any interest rate hedging arrangements.

Item 4. Controls and Procedures.

In accordance with the Exchange Act, Rules 13a-15 and 15d-15, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of ~~September~~June 30, ~~2018~~2019 to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

No change occurred in our internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act), during the three months ended ~~September~~June 30, ~~2018~~2019 that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us. From time to time, we may be party to certain legal proceedings, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of any legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material adverse effect upon our financial condition or results of operations.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the “Risk Factors” discussed in ~~each of~~ our annual report on Form 10-K (as amended) for the year ended December ~~31, 2017 and our quarterly report on Form 10-Q for the quarter ended March~~ 31, 2018, which could materially affect our business, financial condition and/or operating results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.

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

Issuer Purchases of Equity Securities

Repurchases of our common stock pursuant to our tender offer are as follows:

Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)

July 1, 2018 through July 31, 2018 —
$ —
—
—
August 1, 2018 through August 31, 2018 970,635.65
8.15
970,635.65
—
September 1, 2018 through September 30, 2018 11,612.60
8.15
11,612.60
—
Total 982,248.25
8.15
982,248.25
—



Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)

April 1, 2019 through April 30, 2019	—	$	—	—	—
May 1, 2019 through May 31, 2019	803,239.68	7.98		803,239.68	—
June 1, 2019 through June 30, 2019	—	—		—	—
Total	803,239.68			803,239.68	—

Item 3. Defaults upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Not applicable.

Item 6. Exhibits.



Exhibit No.		Description
~~10.1~~		Third Quarter 2018 Conditional Income Incentive Fee Waiver Agreement, dated as of October 31, 2018, by and among the Registrant, HMS Adviser LP and MSC Adviser I, LLC (Filed as Exhibit 10.1 to the Registrant’s current report on Form 8-K, filed on October 31, 2018 (File No. 814-00939) and incorporated herein by reference).
31.1		Certification of Chief Executive Officer of the Registrant, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith).
31.2		Certification of Chief Financial Officer of the Registrant, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith).
32.1		Certification of Chief Executive Officer and Chief Financial Officer of the Registrant, pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith).

SIGNATURES

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



		HMS INCOME FUND, INC.

Date:	~~November 14, 2018~~August 13, 2019	By:	/s/ SHERRI W. SCHUGART
			Sherri W. Schugart
			Chairman and Chief Executive Officer ~~and President~~

Date:	~~November 14, 2018~~August 13, 2019	By:	/s/ ~~RYAN T. SIMS~~DAVID M. COVINGTON
			~~Ryan T. Sims~~David M. Covington
			Chief Financial Officer ~~and Secretary~~

6558



Type of Investment	January 1, 2017 Fair Value		PIK Interest Accrual		New Investments⁽¹⁾		Sales/ Repayments			Net Change in Unrealized Appreciation (Depreciation) ⁽²⁾			Net Realized Gain (Loss)			September 30, 2017 Fair Value
LMM Equity	$	37,616	$	154	$	8,276	$	(622	)	$	1,170		$	(445	)	$	46,149
LMM Debt	78,444		102		25,191		(9,057		)	(1,886		)	—			92,794
Private Loan Equity	6,323		—		3,855		(2,917		)	(1,528		)	2,548			8,281
Private Loan Debt	205,034		181		169,214		(68,482		)	(494		)	—			305,453
Middle Market Debt	638,374		377		236,193		(284,372		)	(3,180		)	306			587,698
Middle Market Equity	5,090		83		33		—			(1,221		)	—			3,985
Other Portfolio⁽³⁾	18,366		—		37,677		(10,756		)	109			950			46,346
Total	$	989,247	$	897	$	480,439	$	(376,206	)	$	(7,030	)	$	3,359		$	1,090,706