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Financial report summary
?Management Discussion
- Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
- We are a newly formed, externally managed, non-diversified, closed-end investment company focused on lending to middle market businesses, with the goal of stimulating economic growth and creating and preserving jobs in Maryland, Delaware, Virginia, Tennessee, North Carolina, South Carolina, West Virginia, Washington D.C. or Kentucky (the “Target Region”).
- The Company was formed as a Delaware limited liability company on March 22, 2021. Prior to the effective date of our Registration Statement (the “Effective Date”), we elected to be regulated as a Business Development Company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). For the period from inception through June 15, 2021, all equity securities of the Company were held by Lafayette Square Holding Company, LLC ("Lafayette Square") and was the Company considered for U.S. tax purposes as a disregarded entity; the Company's activities for this period would be consolidated with the activities of its sole owner. We have adopted an initial tax year end of March 31, 2022 and will be taxed as a corporation for the initial tax period from June 16, 2021 through March 31, 2022. However, we intend to elect to be treated, and comply with the requirements to qualify annually, as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), the first taxable year the Company qualifies for such treatment, and to maintain such election in future taxable years. No assurance can be provided that we will qualify as a RIC for any taxable year. Prior to the Effective Date and to our election to be regulated as a BDC, we completed a conversion under which Lafayette Square Mid-Atlantic BDC, Inc. succeeded to the business of Lafayette Square Mid-Atlantic BDC, LLC, and the member of Lafayette Square Mid-Atlantic BDC, LLC became the stockholder of Lafayette Square Mid-Atlantic BDC, Inc. (the “BDC Conversion”). As a BDC and a RIC, we must comply with certain regulatory requirements.