Registrant’s Telephone Number, Including Area Code: (310)~~(310)~~ 235-5900

Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report.

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 ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of RegulationS-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 ☐ No ☐

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

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

Indicate by check mark whether the Registrant is a shell company (as defined in Rule~~Rule~~ 12b-2 of the Securities Exchange Act of 1934). Yes ☐ No ☒

The number of shares of the Registrant’s common stock, $.001 par value per share, outstanding at ~~November 13, 2017~~August 10, 2018 was ~~8,102,916.~~11,599,480.

This report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current or prospective portfolio investments, our industry, our beliefs, and our assumptions. We believe that it is important to communicate our future expectations to our investors. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

The following factors and factors listed under “Risk Factors” in this report and other documents Crescent Capital BDC, Inc. has filed with the Securities and Exchange Commission, or SEC, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events described in these risk factors and elsewhere in this report could have a material adverse effect on our business, results of operation and financial position. The following factors are among those that may cause actual results to differ materially from our forward-looking statements:

Potential fluctuation in quarterly operating results

Potential impact of economic recessions or downturns

Adverse developments in the credit markets

Operation in a highly competitive market for investment opportunities

Regulations governing our operation as a business development company

Financing investments with borrowed money

Lack of liquidity in investments

Defaults by portfolio companies

Uncertainty as to the value of certain portfolio investments

Potential resignation of the Advisor and or the Administrator

Changes in interest rates may affect our cost of capital and net investment income

Potential adverse effects of price declines and illiquidity in the corporate debt markets

Risks associated with original issue discount (“OID”) andpayment-in-kind (“PIK”) interest income

Risks regarding distributions

Potential adverse effects of new or modified laws and regulations

Although we believe that the assumptions on which these forward-looking statements are based upon are reasonable, some of those assumptions are based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. We do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law. 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 SEC, including annual reports on Form~~Form~~ 10-K, quarterly reports on Form~~Form~~ 10-Q and current reports on Form~~Form~~ 8-K. The safe harbor provisions of Section 21E of the 1934 Act, which preclude civil liability for certain forward-looking statements, do not apply to the forward-looking statements in this report because we are an investment company.

Crescent Capital BDC, Inc. (the “Company”) was formed on February 5, 2015 (“Inception”) as a Delaware corporation structured as an externally managed,closed-end,non-diversified management investment company. The Company commenced investment operations on June 26, 2015 (“Commencement”). The Company has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, the Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements.

The Company is managed by CBDC Advisors, LLC (the “Advisor”), an investment adviser that is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended. CBDC Administration, LLC (the “Administrator”) provides the administrative services necessary for the Company to operate. Company management consists of investment and administrative professionals from the Advisor and Administrator along with the Company’s Board of Directors (the “Board”). The Advisor directs and executes the investment operations and capital raising activities of the Company subject to oversight from the Board, which sets the broad policies of the Company. The Board has delegated investment management of the Company’s investment assets to the Advisor. The Board consists of five directors, three of whom are independent.

On July 23, 2015, the Company formed CBDC Universal Equity, Inc., a wholly-owned subsidiary. This subsidiary allows the Company to hold equity securities of portfolio companies organized as a pass-through entity while continuing to satisfy the requirements of a RIC under the Code. On February 25, 2016, the Company formed Crescent Capital BDC Funding, LLC (“CBDC SPV”), a Delaware limited liability company and wholly owned subsidiary. The financial statements of these two entities are consolidated into the financial statements of the Company. All intercompany balances and transactions have been eliminated.

The Company’s primary investment objective is to maximize the total return to the Company’s stockholders in the form of current income and capital appreciation through debt and related equity investments. The Company will seek to achieve its investment objectives by investing primarily in secured debt (including senior secured, unitranche and second lien debt) and unsecured debt (including senior unsecured, mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. The Company may purchase interests in loans or make debt investments, either (i) directly from ~~our~~its target companies as primary market or private credit investments (i.e., private credit transactions), or (ii) primary or secondary market bank loan or high yield transactions in the broadly syndicated“over-the-counter” market (i.e., broadly syndicated loans and bonds). Although the Company’s focus is to invest in private credit transactions, in certain circumstances it will also invest in broadly syndicated loans and bonds.

“Unitranche” loans are first lien loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, wethe Company may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that wethe Company would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate. ~~We use the~~The term “mezzanine” refers to ~~refer to~~an investment in a company that, among other factors, includes debt that generally ranks senior ~~only~~ to a borrower’s equity securities and ~~ranks~~ junior in right of payment to ~~all of~~ such borrower’s other indebtedness. WeThe Company may make multiple investments in the same portfolio company.

The Company’s functional currency is the United States dollar and these consolidated financial statements have been prepared in that currency. The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to RegulationS-X.

Additionally, the accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form10-Q and Article 10 of RegulationS-X. Accordingly, certain disclosures accompanying annual consolidated financial statements prepared in accordance with GAAP are omitted. In the opinion of management, the unaudited interim financial results included herein contain all adjustments and reclassifications that are necessary for the fair presentation of consolidated financial statements for the periods included herein. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the year ended December 31, ~~2017.~~2018.

The Company is an investment company and, therefore, applies the specialized accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946,Financial Services – Investment Companies.

The preparation of the consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that may affect the amounts reported in the consolidated financial statements and accompanying notes. These consolidated financial statements reflect adjustments that in the opinion of management are necessary for the fair statement of the results for the periods presented. Although management believes that the estimates and assumptions are reasonable, changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially.

Cash and cash equivalents consist of demand deposits and highly liquid investments (e.g., money market funds, U.S. Treasury notes, and similar type instruments) with original maturities of three months or less. Cash and cash equivalents other than money market mutual funds, are carried at cost plus accrued interest, which approximates fair value. Money market mutual funds are carried at their net asset value, which approximates fair value. The Company deposits its cash and cash equivalents with highly-rated banking corporations and, at times, cash deposits may exceed the insured limits under applicable law.

Investments purchased on a secondary market are recorded on the trade date. Loan originations are recorded on the date of the binding commitment. Realized gains or losses are recorded on the First In, First Out (“FIFO”) method as the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment without regard to unrealized gains or losses previously recognized, and include investments written off during the period, net of recoveries. The net change in unrealized gains or losses primarily reflects the change in investment fair values as of the last business day of the reporting period and also includes the reversal of previously recorded unrealized gains or losses with respect to investments realized during the period.

Investments for which market quotations are readily available are typically valued at those market quotations. To validate market quotations, the Company utilizes a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Board, based on, among other things, the input of the Advisor, the Company’s Audit Committee and independent third-party valuation firms engaged at the direction of the Board.

The Board oversees and supervises a multi-step valuation process, which includes, among other procedures, the following:

The valuation process begins with each investment being initially valued by the investment professionals responsible for the portfolio investment in conjunction with the portfolio management team.

The Advisor’s management reviews the preliminary valuations with the investment professionals. Agreed upon valuation recommendations are presented to the Audit Committee.

The Audit Committee reviews the valuations presented and recommends values for each investment to the Board.

The Board reviews the recommended valuations and determines the fair value of each investment; valuations that are not based on readily available market quotations are valued in good faith based on, among other things, the input of the Advisor, Audit Committee and, where applicable, other third parties.

The Company applies Financial Accounting Standards Board ASC 820, Fair Value Measurement (ASC 820), as amended, which establishes a framework for measuring fair value in accordance with GAAP and required disclosures of fair value measurements. ASC 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820, the Company considers its principal market to be the market that has the greatest volume and

level of activity. ASC 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in the determination of fair value. In accordance with ASC 820, these levels are summarized below:

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 quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

In addition to using the above inputs in investment valuations, the Company applies the valuation policy approved by its Board that is consistent with ASC 820. Consistent with the valuation policy, the Company evaluates the source of inputs, including any markets in which its investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. When a security is valued based on prices provided by reputable dealers or pricing services (that is, broker quotes), the Company subjects those prices to various criteria in making the determination as to whether a particular investment would qualify for classification as a Level 2 or Level 3 investment. For example, the Company reviews pricing methodologies provided by dealers or pricing services in order to determine if observable market information is being used, versus unobservable inputs. Some additional factors considered include the number of prices obtained as well as an assessment as to their quality. Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. During the ~~nine~~six months ended ~~September~~June 30, 2018, the Company recorded $0 in transfers from Level 3 to Level 2 and $44,613,267 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data. During the six months ended June 30, 2017, the Company recorded $0 in transfers from Level 3 to Level ~~2. During the nine months ended September 30, 2016, the Company recorded $17,000,233~~2 and $4,850,000 in transfers from Level 32 to Level 23 due to ~~an increase~~a decrease in observable inputs in market data.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein. See Note 4. Investments and Note 5. Fair Value of Financial Instruments for additional information on the Company’s investment portfolio.

Foreign currency amounts are translated into U.S. dollars on the following basis:

cash and cash equivalents, fair value of investments, outstanding debt on revolving credit facilities, other assets and liabilities: at the spot exchange rate on the last business day of the period; and

purchases and sales of investments, borrowings and repayments of such borrowings, income and expenses: at the rates of exchange prevailing on the respective dates of such transactions.

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held. Gains or losses on foreign currency transactions are included with net realized gain (loss) on foreign currency transactions on the Consolidated Statements of Operations. Fluctuations arising from the translation of foreign currency on investments and borrowings are included with net change in unrealized appreciation (depreciation) on investments and foreign currency translation on the Consolidated Statements of Operations.

The Company’s current approach to hedging the foreign currency exposure in itsnon-U.S. dollar denominated investments is primarily to borrow local currency under the Company’s revolving credit facility to partially or fully fund these investments.

organization and private equity offerings costs in excess of $1.5 million. In connection with the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the period during which capital may be called from stockholders (the “Commitment Period”). The Commitment Period was extended to the earlier of (i) a Qualified IPO and (ii) June 30, 2020. With the approval of the Commitment Period extension, the Advisor agreed to extend the reimbursement period for the initial organization costs and equity offering costs to June 30, 2019. See Note 7. Commitments, Contingencies and Indemnifications for additional discussion of certain related party transactions with the Advisor.

The Company records costs related to issuance of debt obligations as deferred financing costs. These costs are deferred and amortized using the effective yield method ~~or straight-line method~~ for revolving credit facilities, over the stated maturity life of the obligation. As of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, there were ~~$1,055,442~~$583,861 and ~~$979,874,~~$856,042, respectively, of deferred financing costs netted against debt balances on the Company’s Consolidated Statements of Assets and Liabilities.

Interest income is recorded on an accrual basis and includes the amortization of purchase discounts and premiums. Discounts and premiums to par value on securities purchased are accreted or amortized into interest income over the contractual life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion and amortization of discounts and premiums, if any. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts are recorded as interest income.

Dividend income from preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income from common equity securities is recorded on the record date for private portfolio companies or on theex-dividend date for publicly-traded portfolio companies.

Certain investments have contractualpayment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal or cost basis of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable. If at any point the Company believes PIK is not expected to be realized, the investment generating PIK will be placed onnon-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed onnon-accrual status.

Loans are generally placed onnon-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed onnon-accrual status. Interest payments received onnon-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability.Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan onnon-accrual status if the loan has sufficient collateral value and is in the process of collection. As of ~~September~~June 30, ~~2017~~2018, the Company had one investment onnon-accrual status, which represented 2.0% and 1.7% of the total investments at cost and fair value, respectively. As of December 31, ~~2016,~~2017, no loans had been placed onnon-accrual status by the Company.

From time to time, the Company may receive fees for services provided to portfolio companies by the Advisor under the Investment Advisory Agreement. The services that the Advisor provides vary by investment, but generally include syndication, structuring or diligence fees, and fees for providing managerial assistance to the portfolio companies. The Company may also generate revenue in the form of commitment or origination fees. Loan origination fees, original issue discount and market discount or premium are capitalized; such amounts are accreted or amortized into income over the life of the loan. Fees for providing managerial assistance to the portfolio companies are generallynon-recurring and are recognized as revenue when services are provided.

In certain instances where the Company is invited to participate as aco-lender in a transaction and does not provide significant services in connection with the investment, all or a portion of any loan fees received by the Company in such situations will be deferred and amortized over the investment’s life using the effective yield method.

The Company has elected to be treated as a BDC under the 1940 Act. The Company also has elected to be treated as a RIC under the Internal Revenue Code. So long as the Company maintains its status as a RIC, it will generally not pay corporate-level U.S. federal income or excise taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends. As a result, any tax liability related to income earned and distributed by the Company represents obligations of the Company’s stockholders and will not be reflected in the consolidated financial statements of the Company.

The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are“more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the“more-likely-than-not” threshold are reversed and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to,on-going analyses of tax laws, regulations and interpretations thereof. The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements.

The Company intends to comply with the applicable provisions of the Code, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. As of ~~September~~June 30, ~~2017,~~2018, all tax filings of the Company since the inception on February 5, 2015 remain subject to examination by federal tax authorities. No such examinations are currently pending.

In order for the Company not to be subject to federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of its net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding years. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% excise tax on this income. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. The Company will accrue excise tax on estimated undistributed taxable income as required. For the three and six months ended June 30, 2018, the Company incurred an excise tax of $0 and $0, respectively, of which $0 remained payable and included in accrued expenses and other liabilities on the Consolidated Statements of Assets and Liabilities. There were no excise tax expenses or payables for the three and six months ended June 30, 2017.

CBDC Universal Equity, Inc. ~~has elected to be~~is a taxable entity (the “Taxable Subsidiary”). The Taxable Subsidiary permits the Company to hold equity investments in portfolio companies which are “pass through” entities for tax purposes and continue to comply with the “source income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiary is not consolidated with the Company for income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of its ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities are reflected in the Company’s consolidated financial statements. For the ~~three and nine~~six months ended ~~September~~June 30, ~~2017,~~2018, the Company recognized a benefit/(provision) for taxes on unrealized appreciation/(depreciation) on investments of ~~$(380,145)~~$5,499 related to the Taxable Subsidiary. ~~As of September 30, 2017, the Company had~~There is a corresponding deferred tax liability of ~~$380,145~~$211,649 related to the Taxable ~~Subsidiary.~~Subsidiary as of June 30, 2018. There were no deferred tax assets or liabilities related to the Taxable Subsidiary at ~~December 31, 2016.~~June 30, 2017.

Dividends and distributions to common stockholders are recorded on the record date. The amount to be paid out as a dividend is determined by the Board each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually, although the Company may decide to retain such capital gains for investment.

The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions the Company declares in cash on behalf of the Company’s stockholders for those stockholders electing not to receive cash. As a result, if the Board authorizes, and the Company declares, a cash dividend, then the Company’s stockholders who have “opted in” to the Company’s dividend reinvestment plan will have their cash dividends automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash dividend.

In May 2014, the FASB issued Accounting Standards Update (“ASU”)2014-09 (“ASU2014-09”), “Revenue from Contracts with Customers (Topic 606).” The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition. Under the new guidance, 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 the entity expects to be entitled in exchange for those goods or services. The amendments in ASU2014-09 ~~are~~were effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. ~~Early adoption is permitted for annual reporting periods beginning after December 15, 2016 and interim periods therein.~~ This standard ~~will~~did not have a material impact on the consolidated financial statements, primarily because the majority of the Company’s revenue is accounted for under FASB ASC Topic 320,“Investments – Debt and Equity Securities”, which is scoped out of this standard.

~~In December 2016, the FASB issued ASU2016-19,~~ “~~Technical Corrections and Improvements.~~~~” As part of this guidance, ASU2016-19~~ ~~amends FASB ASC Topic 820, “~~~~Fair Value Measurement and Disclosures~~” (“ASC 820”) to clarify the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. ASU~~2016-19~~ is effective on a prospective basis for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 on a prospective basis. The Company adopted this guidance during the quarter ended March 31, 2017. The adoption of this guidance did not have a material impact on the Company’s financial position, results of operations, cash flows or disclosures.

On June 2, 2015, the Company entered into the Administration Agreement with the Administrator. Under the terms of the Administration Agreement, the Administrator provides administrative services to the Company. These services include providing office space, equipment and office services, maintaining financial records, preparing reports to stockholders and reports filed with the SEC, and managing the payment of expenses and the performance of administrative and professional services rendered by others. Certain of these services are reimbursable to the Administrator under the terms of the Administration Agreement. In addition, the Administrator is permitted to delegate its duties under the Administration Agreement to affiliates or third parties. To the extent the Administrator outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis, without incremental profit to the Administrator. The Administration Agreement may be terminated by either party without penalty on 60 days’ written notice to the other party.

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, the Company incurred administrative services expenses of ~~$141,590~~$164,228 and ~~$424,769,~~$330,092, respectively, which isare included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of the Administration Agreement, of which ~~$146,754~~$246,661 was payable at ~~September~~June 30, ~~2017.~~2018. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, the Company incurred administrative services expenses of ~~$136,926~~$141,589 and ~~$382,644,~~$283,179, respectively, which isare included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of the Administration Agreement, of which ~~$142,431~~$169,007 was payable at ~~September~~June 30, ~~2016.~~2017.

No person who is an officer, director or employee of the Administrator or its affiliates and who serves as a director of the Company receives any compensation from the Company for his or her services as a director. However, the Company reimburses the Administrator (or its affiliates) for an allocable portion of the compensation paid by the Administrator or its affiliates to the Company’s Chief Compliance Officer, Chief Financial Officer, and other professionals who spend time on such related activities (based on the percentage of time those individuals devote, on an estimated basis, to the business and affairs of the Company). The allocable portion of the compensation for these officers and other professionals are included in the administration expenses paid to Administrator. Directors who are not affiliated with the Administrator or its affiliates receive compensation for their services and reimbursement of expenses incurred to attend meetings.

On June 5, 2015, the Company entered intosub-administration, accounting, transfer agent, and custodian agreements with State Street Bank and Trust Company (“SSB”) to perform certain administrative, custodian, transfer agent and other services on behalf of the Company. The sub-administration agreements with SSB have an initial term of three years ending June 5, ~~2018.~~2018 and shall automatically renew for1-year terms unless a written notice ofnon-renewal is delivered by the Company or SSB. The Company does not reimburse the Administrator for any services for which it pays a separatesub-administrator and custodian fee to SSB. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, the Company incurred expenses of ~~$170,238~~$190,507 and ~~$494,247,~~$367,613, respectively, which is included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of thesub-administration agreements, of which ~~$169,968~~$190,495 was payable at ~~September~~June 30, ~~2017.~~2018. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, the Company incurred expenses of ~~$157,752~~$163,232 and ~~$464,189,~~$324,009, respectively, which is included in other general and administrative expenses on the Consolidated Statements of Operations, under the terms of thesub-administration agreements, of which ~~$156,604~~$163,565 was payable at ~~September~~June 30, ~~2016.~~2017.

On June 2, 2015, the Company entered into the Investment Advisory Agreement with the Advisor. Under the terms of the Investment Advisory Agreement, the Advisor will provide investment advisory services to the Company and its portfolio investments. The Advisor’s services under the Investment Advisory Agreement are not exclusive, and the Advisor is free to furnish similar or other services to others so long as its services to the Company are not impaired. Under the terms of the Investment Advisory Agreement, the Company will pay the Advisor the Base Management Fee, as discussed below, and may also pay certain Incentive Fees, as discussed below.

The Base Management Fee is calculated and payable quarterly in arrears at an annual rate of 1.5% of the Company’s gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The Base Management Fee is calculated based on the average value of gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter.

The Advisor, however, has agreed to waive its right to receive management fees in excess of the sum of (i) 0.25% of the aggregate committed but undrawn capital and (ii) 0.75% of the aggregate gross assets excluding cash and cash equivalents (including capital drawn to pay the Company’s expenses) during any period prior to a qualified initial public offering, as defined by the Investment

Advisory Agreement (“Qualified IPO”). The Advisor will not be permitted to recoup any waived amounts at any time and the waiver agreement may only be modified or terminated prior to a Qualified IPO with the approval of the Board. For purposes of the Investment Advisory Agreement, cash equivalents means U.S. government securities and commercial paper maturing within one year of purchase.

For the three and ~~nine~~six months ended ~~September~~June 30, 2018, the Company incurred management fees, which are net of waived amounts, of $795,246 and $1,532,998, respectively, of which $795,245 was payable at June 30, 2018. For the three and six months ended June 30, 2017, the Company incurred management fees, which are net of waived amounts, of ~~$710,176~~$668,292 and ~~$1,982,695,~~$1,272,519, respectively, of which ~~$710,175~~$668,293 was payable at ~~September~~June 30, 2017.

The Advisor has voluntarily waived its right to receive management fees on our investment in Great American Capital Partners II LP (“GACP II”) for any period in which GACP II remains in our investment portfolio. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016, the Company incurred~~2018, management fees ~~which are net~~ of $10,050 were waived ~~amounts, of $432,213 and $1,179,301, respectively, of which $432,213 was payable at September 30, 2016.~~attributable to the Company’s investment in GACP II.

The Incentive Fees consists of two parts. The first part, the income incentive fee, is calculated and payable quarterly in arrears and (a) equals 100% of the excess of thepre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.5% per quarter (6% annualized) (the “Hurdle”), and acatch-up feature until the Advisor has received, (i) prior to a Qualified IPO, 15%, or (ii) after a Qualified IPO, 17.5%, of thepre-incentive fee net investment income for the current quarter up to, (i) prior to a Qualified IPO, 1.7647%, or (ii) after a Qualified IPO, 1.8182% (the“Catch-up”), and (b) (i) prior to a Qualified IPO, 15% or (ii) after a Qualified IPO, 17.5%, of all remainingpre-incentive fee net investment income above the“Catch-up.”

Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during each calendar quarter, minus operating expenses for such quarter (including the base management fee, expenses payable under the Administration Agreement and any interest expense and distributions paid on any issued and outstanding debt or preferred stock, but excluding the incentive fee).Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as market discount, OID, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities), accrued income that the Company has not yet received in cash.Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.Pre-incentive fee net investment income will be compared to a “Hurdle Amount” equal to the product of (i) the Hurdle rate of 1.50% per quarter (6.00% annualized) and (ii) ~~our~~ net assets (defined as total assets less indebtedness, before taking into account any incentive fees payable during the period), at the end of the immediately preceding calendar quarter, subject to a“catch-up” provision incurred at the end of each calendar quarter. ~~Our netpre-incentive~~

In connection with the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the Commitment Period. The Commitment Period was extended to the earlier of (i) a Qualified IPO and (ii) June 30, 2020. In exchange for the Commitment Period extension, the Advisor agreed to waive its rights under the Investment Advisory Agreement to the income incentive fee for the period from April 1, 2018 through the earlier of (i) the date of a Qualified IPO or (ii) the dissolution and wind down of the Company.

Upon a Qualified IPO and the Advisor begins to earn income incentive fees, the Advisor will voluntarily waive the income incentive fees attributable to the investment income ~~used to calculate this part~~accrued by the Company as a result of ~~the incentive fee is also included~~its investment in ~~the amount of our gross assets used to calculate the 1.5% Base Management Fee.~~GACP II.

For the three and ~~nine~~six months ended ~~September~~June 30, 2018, the Company incurred income incentive fees, which are net of waived amounts, of $0 and $554,977, respectively, of which $0 was payable at June 30, 2018. For the three and six months ended June 30, 2017, the Company incurred income incentive fees of ~~$504,005~~$392,977 and ~~$1,118,540,~~$614,535, respectively, of which ~~$504,005~~$392,978 was payable at ~~September~~June 30, 2017. ~~For the three and nine months ended September 30, 2016, the Company incurred income incentive fees of $63,956 and $63,956, respectively, which was payable at September 30, 2016.~~

The second part, the capital gains incentive fee, is determined and payable in arrears as of the end of each fiscal year (or upon a Qualified IPO or termination of the Investment Advisory Agreement), (i) prior to a Qualified IPO, 15.0%, or (ii) after a Qualified IPO, 17.5% of the Company’s realized capital gains, if any, on a cumulative basis from inception through the end of the fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. If a Qualified IPO occurs on a date other than the first day of a calendar quarter, the income incentive fee shall be calculated for such calendar quarter at a weighted rate calculated based on the fee rates applicable before and after a Qualified IPO based on the number of days in such calendar quarter before and after a Qualified IPO. If a Qualified IPO occurs on a date other than the first day of a fiscal year, a capital gains incentive fee shall be calculated as of the day before the Qualified IPO, with such capital gains incentive fee paid to the Advisor following the end of the fiscal year in which the Qualified IPO occurred. For the avoidance of doubt, such capital gains incentive fee shall be equal to 15.0% of the Company’s realized capital gains on a cumulative basis from inception through the day before the Qualified IPO, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees.

Following a Qualified IPO, solely for the purposes of calculating the capital gains incentive fee, the Company will be deemed to have previously paid capital gains incentive fees prior to a Qualified IPO equal to the product obtained by multiplying (a) the actual aggregate amount of previously paid capital gains incentive fees for all periods prior to a Qualified IPO by (b) the percentage obtained by dividing (x) 17.5% by (y) 15.0%. In the event that the Investment Advisory Agreement shall terminate as of a date that is not a fiscal year end, the termination date shall be treated as though it were a fiscal year end for purposes of calculating and paying a capital gains incentive fee.

In connection with the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the deadline to consummate a Qualified IPO (the “Qualified IPO Deadline”). The Qualified IPO Deadline was extended to June 30, 2022. In exchange for the Qualified IPO Deadline extension, the Advisor agreed to waive its rights under the Investment Advisory Agreement to the capital gain incentive fee for the period from April 1, 2018 through the earlier of (i) the date of a Qualified IPO or (ii) the dissolution and wind down of the Company.

No capital gains incentive fees were incurred for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016.~~2017.

From time to time, the Advisor may pay amounts owed by the Company to third-party providers of goods or services, including the Board, and the Company will subsequently reimburse the Advisor for such amounts paid on its behalf. Amounts payable to the Advisor are settled in the normal course of business without formal payment terms. See Note 7. Commitments, Contingencies and Indemnifications for additional discussion of certain related party transactions with the Advisor.

A portion of the outstanding shares of the Company’s common stock are owned by Crescent Capital Group LP (“CCG LP”). CCG LP is also the majority member of the Advisor and sole member of the Administrator. The Company has entered into a license agreement with CCG LP under which CCG LP granted the Company anon-exclusive, royalty-free license to use the name “Crescent Capital”. The Advisor has entered into a resource sharing agreement with CCG LP. CCG LP will provide the Advisor with the resources necessary for the Advisor to fulfill its obligations under the Investment Advisory Agreement.

Each of the Company’s independent directors receive (i) an annual fee of $75,000, and (ii) $2,500 plus reimbursement of reasonableout-of-pocket expenses incurred in connection with attending each regular Board meeting and $500 each special meeting. The Company’s independent directors also receive $1,000 plus reimbursement of reasonableout-of-pocket expenses incurred in connection with each committee meeting attended. The Chairman of the Audit Committee receives an additional annual fee of $7,500. The Chairperson of the Nominating and Corporate Governance Committee and the Compensation Committee receive an additional annual fee of $2,500 and $2,500, respectively. The Company has obtained directors’ and officers’ liability insurance on behalf of the Company’s directors and officers. For the three and ~~nine~~six months ended ~~September~~June 30, 2018, the Company recorded directors’ fees of $72,500 and $145,000, respectively, of which $61,563 was payable at June 30, 2018. For the three and six months ended June 30, 2017, the Company recorded directors’ fees of $72,500 and ~~$217,500,~~$145,000, respectively, of which ~~$52,188~~$127,625 was payable at ~~September~~June 30, 2017. ~~For the three and nine months ended September 30, 2016, the Company recorded directors’ fees of $67,250 and $217,167, respectively, of which $47,250 was payable at September 30, 2016.~~

The Company’s investments at any time may include securities and other financial instruments or other assets of any sort, including, without limitation, corporate and government bonds, convertible securities, collateralized loan obligations, term loans, trade claims, equity securities, privately negotiated securities, direct placements, working interests, warrants and investment derivatives (including, but not limited to credit default swaps, recovery swaps, total return swaps, options, forward contracts, and futures) (all of the foregoing collectively referred to in these consolidated financial statements as “investments”).

Under the 1940 Act, the Company is required to separately identifynon-controlled investments where it owns 5% or more of a portfolio company’s outstanding voting securities and/or has the power to exercise control over the management or policies of such portfolio company as investments in “affiliated” companies. In addition, under the 1940 Act, the Company is required to separately identify investments where it owns more than 25% of a portfolio company’s outstanding voting securities and/or has the power to exercise control over the management or policies of such portfolio company as investments in “controlled” companies. Detailed information with respect to the Company’snon-controlled,non-affiliated;non-controlled, affiliated; and controlled affiliated investments is contained in the accompanying consolidated financial statements, including the Consolidated Schedule of Investments. The information in the tables below is presented on an aggregate portfolio basis, without regard to whether they arenon-controllednon-affiliated,non-controlled affiliated or controlled affiliated investments. As of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, all investments held arenon-controlled/non-affiliated investments.

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

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

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

Investments denominated in foreign currencies and foreign currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

Investments at fair value consisted of the following at ~~September~~June 30, ~~2017:~~2018:

Investments at fair value consisted of the following at December 31, ~~2016:~~2017:

The industry composition of investments at fair value at ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016~~2017 is as follows:

The geographic composition of investments at fair value at ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016~~2017 is as follows:

The following table presents fair value measurements of investments as of ~~September~~June 30, ~~2017:~~2018:

The following table presents fair value measurements of investments as of December 31, ~~2016:~~2017:

The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, based off of the fair value hierarchy at ~~September~~June 30, ~~2017:~~2018:


	Senior			Senior
	Secured			Secured			Unsecured			Preferred		Common
	First Lien			Second Lien			Debt			Stock		Stock			Total
Balance as of January 1, 2018	$	153,914,784		$	46,631,702		$	5,641,565		$	2,011,108	$	7,923,331		$	216,122,490
Amortized discounts/premiums		517,192			96,973			9,910			-		-			624,075
Paidin-kind interest		7,436			-			60,458			-		-			67,894
Net realized gain (loss)		1,890			-			-			-		-			1,890
Net change in unrealized appreciation (depreciation)		(15,136	)		(1,414,514	)		(206,246	)		124,660		(161,082	)		(1,672,318	)
Purchases		99,995,494			881,018			30,187			-		12,421,301			113,328,000
Sales/return of capital/principal repayments/paydowns		(40,173,072	)		-			-			-		-			(40,173,072	)
Transfers in		32,623,340			11,989,927			-			-		-			44,613,267
Transfers out		-			-			-			-		-			-

Balance as of June 30, 2018	$	246,871,928		$	58,185,106		$	5,535,874		$	2,135,768	$	20,183,550		$	332,912,226


Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2018	$	346,343		$	(1,414,514	)	$	(206,246	)	$	124,660	$	(161,082	)	$	(1,310,839	)

During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, the Company recorded $0 in transfers from Level 3 to Level 2.2 and $44,613,267 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data.

The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017, based off of the fair value hierarchy at ~~September~~June 30, ~~2016:~~2017:

During the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, the Company recorded ~~$17,000,233~~$0 in transfers from Level 3 to Level 2 and $4,850,000 in transfers from Level 2 to Level 3 due to ~~an increase~~a decrease in observable inputs in market data.

The following tables present the fair value of Level 3 investments and the ranges of significant unobservable inputs used to value the Company’s Level 3 investments as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016.~~2017. These ranges represent the significant unobservable inputs that were used in the valuation of each type of investment. These inputs are not representative of the inputs that could have been used in the valuation of any one investment. For example, the highest market yield presented in the table for senior secured first lien investments is appropriate for valuing a specific investment but may not be appropriate for valuing any other investment. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 investments.

Quantitative information about Level 3 Fair Value Measurements


Fair value as of
December 31, 2016

Valuation
Techniques

Unobservable
Input

Range
(Weighted Average)

  Senior Secured First Lien
   $65,399,107    Discounted Cash Flows    Discount Rate    5.7% - 9.9% (7.1%)


  Senior Secured Second Lien
   $21,353,680    Discounted Cash Flows    Discount Rate    9.8% - 10.5% (10.1%)

  Unsecured Debt
   $4,950,000    Discounted Cash Flows    Discount Rate    11.2%

  Common Stock
   $3,943,634    Market Multiple    Comparable EBITDA Multiple    10.5x - 13.4x (11.8x)

As noted above, the discounted cash flows ~~market rate~~ and market multiple approaches were used in the determination of fair value of certain Level 3 assets as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016.~~2017. The significant unobservable inputs used in the discounted cash flow approach is the discount rate used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. An increase in the discount rate would result in a decrease in the fair value. Included in the consideration and selection of discount rates is risk of default, rating of the investment, call provisions and comparable company investments. The significant unobservable inputs used in the market rate approach are the effective yield on a loan given its current fair value mark and the market yields for that type of loan. An increase in the market yield would result in a decrease in the fair value. The significant unobservable inputs used in the market multiple approach are the multiples of similar companies’ earnings before income taxes, depreciation and amortization (“EBITDA”) and comparable market transactions. Increases or decreases in market EBITDA multiples would result in an increase or decrease in the fair value.

The carrying value of the Company’s ~~revolving credit facility,~~debt, as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, approximates its fair value as the ~~revolving credit facility,~~debt, issued at market terms, includes a variable interest ~~rate,~~rates, as discussed in Note 6.

Debt consisted of the following as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016:~~2017:

(2)	The difference between ~~the~~ drawn amount and the carrying value is attributable to the effect of foreign currency translation adjustments.

(3)	The Company had outstanding debt denominated in Pound Sterling (GBP) of 2.5 million and Euro (EUR) of 1.8 million on its Revolving Credit Facility and Revolving Credit Facility II.

(4)	For borrowings innon-USD, the drawn amount represents the USD equivalent at the time of borrowing (i.e. cost).

(5)	Total drawn amount payable after the effect of foreign currency translation as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, was ~~$57,910,419~~$71,959,703 and ~~$47,006,114,~~$65,044,546, respectively.

As of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, the Company was in compliance with the terms and covenants of its debt arrangements.

On March 28, 2016 Crescent Capital BDC Funding, LLC (“CBDC SPV”), a Delaware limited liability company and wholly owned and consolidated subsidiary of the Company, entered into a loan and security agreement (the “SPV Asset Facility”) with the Company as the collateral manager, seller and equityholder, CBDC SPV as the borrower, the banks and other financial institutions from time to time party thereto as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, collateral agent, and lender. The SPV Asset Facility is effective as of March 28, 2016. On February 8, 2017, the Company amended the SPV Asset Facility increasing the facility limit from $75 million to $125 million.

The maximum commitment amount under the SPV Asset Facility is $125 million, and may be increased with the consent of Wells Fargo or reduced upon request of the Company. Proceeds of the advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to the Company in accordance with the SPV Asset Facility, and to pay related expenses. The maturity date is the earlier of: (a) the date the Borrower voluntarily reduces the commitments to zero, (b) the Facility Maturity Date (March 28, 2021) and (c) the date upon which Wells Fargo declares the obligations due and payable after the occurrence of an Event of Default. Borrowings under the SPV Asset Facility bear interest at London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor. The Company pays unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The SPV Asset Facility includes customary covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature.

Also on March 28, 2016, the Company, as Seller, and CBDC SPV, as Purchaser, entered into a loan sale agreement whereby the Company will sell certain assets to CBDC SPV. CBDC SPV will be consolidated into the Company’s financial statements and no gain or loss is expected to result from the sale of assets to CBDC SPV. The Company retains a residual interest in assets contributed to or acquired by CBDC SPV through its 100% ownership of CBDC SPV. The facility size is subject to availability under the borrowing base, which is based on the amount of CBDC SPV’s assets from time to time, and satisfaction of certain conditions, including an asset coverage test and certain concentration limits.

Costs incurred in connection with obtaining the SPV Asset Facility have been recorded as deferred financing costs and are being amortized over the life of the SPV Asset Facility on ~~a straight-line~~an effective yield basis. As of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, deferred financing costs related to the SPV Asset Facility were ~~$934,439~~$464,638 and ~~$900,020,~~$776,117, respectively, and were ~~included in debt on the Consolidated Statements of Assets and Liabilities.~~

On June 29, 2015, the Company entered into the “Revolving Credit Facility” with Natixis, New York Branch (“Natixis”), as administrative agent (the “Administrative Agent”), and Natixis and certain of its affiliates as lenders. Proceeds from the Revolving Credit Facility may be used for investment activities, expenses, working capital requirements and general corporate purposes. The Company’s obligations to the lenders are secured by a first priority security interest in the unused capital commitments (See Note 7. Commitments, Contingencies and Indemnifications) and certain investments and cash held by the Company. The Revolving Credit Facility contains certain covenants, including, but not limited to maintaining an asset coverage ratio of total assets to total borrowings of at least 2 to 1. The maximum principal amount of the Revolving Credit Facility is $50 million, subject to availability under the borrowing base. On October 23, 2015, the Company amended the Revolving Credit Facility to include a multi-currency tranche allowing the Company to borrow up to 15% of the principal amount committed under an alternative currency including Euro, Canadian Dollar and Pound Sterling (GBP). On June 29, 2016, the Company amended the Revolving Credit Facility decreasing the facility limit from $75 million to $50 million and extending the maturity date to June 29, 2017. The Company paid down in full and terminated the Revolving Credit Facility on June 29, 2017.

Borrowings under the Revolving Credit Facility bear interest at either (i) London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor or (ii) at lenders’ cost of funds plus a margin. The Company may elect either the LIBOR or prime rate at the time of draw-down, and loans may be converted from one rate to another at any time, subject to certain conditions. The Company pays unused facility fees of 0.20% per annum on committed but undrawn amounts under the Revolving Credit Facility. Interest is payable monthly in arrears.

Costs incurred in connection with obtaining the Revolving Credit Facility are recorded as deferred financing costs and are being amortized over the life of the Revolving Credit Facility on a straight-line basis. As of September 30, 2017 and December 31, 2016, deferred financing costs related to the Revolving Credit Facility were $0 and $79,854, respectively, and are included in debt on the Consolidated Statements of Assets and Liabilities.

On June 29, 2017, the Company entered into the “Revolving Credit Facility II” with Capital One, National Association (“CONA”), as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender. Proceeds from the Revolving Credit Facility II may be used for investment activities, expenses, working capital requirements and general corporate purposes. The Company’s obligations to the Committed Lender are secured by a first priority security interest in the unused capital commitments (See Note 7. Commitments, Contingencies and Indemnifications) and certain investments and cash held by the Company. The Revolving Credit Facility II contains certain covenants, including, but not limited to maintaining an asset coverage ratio of total assets to total borrowings of at least 2 to 1. The maximum principal amount of the Revolving Credit Facility II is $75 million, subject to availability under the borrowing base.

Borrowings under the Revolving Credit Facility II bear interest at the London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor. The Company may elect either the LIBOR or prime rate at the time of draw-down, and loans may be converted from one rate to another at any time, subject to certain conditions. The Company pays unused facility fees of 0.20% per annum on committed but undrawn amounts under the Revolving Credit Facility II. Interest is payable monthly in arrears. Any amounts borrowed under the Revolving Credit Facility II, and all accrued and unpaid interest, will be due and payable, on June 29, 2018. On June 28, 2018, the Company amended the Revolving Credit Facility II increasing the facility limit from $75 million to $85 million and extending the maturity date to June 29, 2019.

Costs incurred in connection with obtaining the Revolving Credit Facility II have been recorded as deferred financing costs and are being amortized over the life of the Revolving Credit Facility II on ~~a straight-line~~an effective yield basis. As of ~~September~~June 30, 2018 and December 31, 2017, deferred financing costs related to the Revolving Credit Facility II were ~~$121,003~~$119,223 and $79,925, respectively, and were included in debt on the Consolidated Statements of Assets and Liabilities.

On June 29, 2015, the Company entered into the “Revolving Credit Facility” with Natixis, New York Branch (“Natixis”), as administrative agent (the “Administrative Agent”), and Natixis and certain of its affiliates as lenders. Proceeds from the Revolving Credit Facility may be used for investment activities, expenses, working capital requirements and general corporate purposes. The Company’s obligations to the lenders are secured by a first priority security interest in the unused capital commitments (See Note 7. Commitments, Contingencies and Indemnifications) and certain investments and cash held by the Company. The Revolving Credit Facility contains certain covenants, including, but not limited to maintaining an asset coverage ratio of total assets to total borrowings of at least 2 to 1. The maximum principal amount of the Revolving Credit Facility is $75 million, subject to availability under the borrowing base. On October 23, 2015, the Company amended the Revolving Credit Facility to include a multi-currency tranche allowing the Company to borrow up to 15% of the principal amount committed under an alternative currency including Euro, Canadian Dollar and Pound Sterling (GBP). On June 29, 2016, the Company amended the Revolving Credit Facility decreasing the facility limit from $75 million to $50 million and extending the maturity date to June 29, 2017. The Company paid down in full and terminated the Revolving Credit Facility on June 29, 2017.

Borrowings under the Revolving Credit Facility bore interest at either (i) London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor or (ii) at lenders’ cost of funds plus a margin. The Company paid unused facility fees of 0.20% per annum on committed but undrawn amounts under the Revolving Credit Facility. Interest was payable monthly in arrears.

The summary information regarding the SPV Asset Facility, Revolving Credit Facility, and the Revolving Credit Facility II for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016~~2017 were as follows:

~~See accompanying notes.~~


	For the three months ended June 30,						For the six months ended June 30,
	2018			2017			2018			2017
Borrowing interest expense	$	1,716,550		$	1,039,257		$	3,107,391		$	1,859,909
Facility fees		42,662			55,556			108,716			107,567
Amortization of financing costs		196,996			195,977			392,061			368,746

Total	$	1,956,208		$	1,290,790		$	3,608,168		$	2,336,222

Weighted average interest rate		4.11	%		3.18	%		3.93	%		3.09	%
Average outstanding balance	$	167,452,665		$	130,888,883		$	159,340,902		$	121,303,940

The Company’s investment portfolio may contain debt investments that are in the form of lines of credit and unfunded delayed draw commitments, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements. As of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, the Company had unfunded commitments denominated in USD totaling ~~$16,348,767~~$42,976,332 and ~~$9,297,035,~~$21,116,031, respectively, under loan and financing agreements. The Company also had outstanding an unfunded commitment denominated in GBP totaling £377,841 and £377,841 at ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively.

As of ~~September~~June 30, ~~2017,~~2018, the Company had ~~$389~~$391.7 million in total capital commitments from investors. Of this amount, ~~$10~~$10.0 million was from Crescent Capital Group LP (“CCG LP”) and its affiliates. The remaining unfunded capital commitments totaled ~~$228~~$185.7 million as of ~~September~~June 30, ~~2017.~~2018.

Up to June 25, 2015, the Company’s efforts had been limited to organizational activities, the cost of which has been borne by the Advisor. The Company has agreed to repay the Advisor for initial organization costs and equity offering costs incurred prior to the commencement of its operations up to a maximum of $1.5 million on a pro rata basis over the first $350 million of invested capital not to exceed 3 years from the initial capital commitment. The Advisor incurred costs on behalf of the Company of $794,450 of equity offering costs and $567,895 of organization costs through Commencement. For the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, the Advisor allocated to the Company ~~$79,445~~$79,444 of equity offering costs and $56,790 of organization costs, of which ~~$38,924~~$77,848 was included in Due ~~from~~to Advisor on the Consolidated Statements of Assets and Liabilities at ~~September~~June 30, ~~2017.~~2018. Since June 26, 2015 (Commencement) through ~~September~~June 30, ~~2017,~~2018, the Advisor has allocated to the Company ~~$365,447~~$467,590 of equity offering costs and ~~$261,232~~$334,247 of organization costs.

In the normal course of business, the Company enters into contracts which provide a variety of representations and warranties, and that provide general indemnifications. Such contracts include those with certain service providers, brokers and trading counterparties. Any exposure to the Company under these arrangements is unknown as it would involve future claims that may be made against the Company; however, based on the Company’s experience, the risk of loss is remote and no such claims are expected to occur. As such, the Company has not accrued any liability in connection with such indemnifications.

~~On June 26, 2015,~~Since commencement, the Company has entered into subscription agreements (collectively, the “Subscription Agreements”) with several investors, including CCG LP and its affiliates, providing for the private placement of the Company’s common stock. Under the terms of the Subscription Agreements, investors are required to fund capital drawdowns to purchase the Company’s common stock up to the amount of their respective capital commitments on anas-needed basis as determined by the Company with a minimum of 10 business days’ prior notice. The remaining unfunded capital commitments related to these Subscription Agreements totaled ~~$228.0~~$185.7 million and ~~$246.7~~$220.7 million as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively.

The following table summarizes the total shares issued and amount received related to capital drawdowns delivered pursuant to the Subscription Agreements during the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016:~~2017:

Prior to the listing of the Company’s shares on an exchange, stockholders who “opt in” to the Company’s dividend reinvestment plan will have their cash dividends and distributions automatically reinvested in additional shares of the Company’s common stock, rather than receiving cash dividends and distributions. The number of shares to be issued to a stockholder is determined by dividing the total dollar amount of the cash dividend or distribution payable to a stockholder by the net asset value per share of the common stock as of the last day of the Company’s fiscal quarter or such other date and price per share as determined by the Board preceding the date such dividend was declared.

The Company has authorized 200,000,000 shares of its common stock with a par value of $0.001 per share. The Company has authorized 10,000 shares of its preferred stock with a par value of $0.001 per share. Shares of preferred stock have not been issued. On February 5, 2015, the Company issued 1,000 common shares to CCG LP. On April 15, 2015, CCG LP contributed $499,000 of additionalpaid-in-capital to the Company. On June 29, 2015, CCG LP exchanged its 1,000 shares issued on February 5, 2015 for 25,000 common shares, which were subsequently redeemed on June 30, 2015.

At ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, CCG LP and its affiliates owned ~~3.52%~~2.76% and ~~4.47%~~3.32%, respectively, of the outstanding common shares of the Company.

For the ~~nine~~six months ended ~~September~~June 30, 2018, distributions made by the Company are as follows:

For the six months ended June 30, 2017, distributions made by the Company are as follows:

~~For the nine months ended September 30, 2016, distributions made by the Company are as follows:~~

In accordance with the provisions of ASC Topic 260 –Earnings per Share (“ASC 260”), basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. As of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, there are no dilutive shares.

The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations for the following periods:

As of ~~September~~June 30, 2018, the Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was:

As of December 31, 2017, the Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was:

~~As of December 31, 2016, the Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was:~~

Below is the schedule of financial highlights of the Company for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016,~~2017, relating to the common shares issued through ~~September~~June 30, ~~2017~~2018 and ~~2016~~2017 pursuant to the Subscription Agreements:

⁽²⁾	The amount shown does not correspond with the aggregate realized and unrealized gains (losses) on investment transactions for the period as it includes the effect of the timing of equity issuances.

⁽³⁾	The per share data for distributions per share reflects the actual amount of distributions declared per share for the applicable period.

⁽⁴⁾	Total return based on net asset value is calculated as the change in net asset value per share during the period plus declared dividends per share during the period, divided by the beginning net asset value per share.

⁽⁵⁾	Annualized.

⁽⁶⁾	Annualized except for organization expenses.

⁽⁷⁾

~~Not annualized.~~

The ratio of total expenses to average net assets in the table above reflects the Advisor’s voluntary waivers of its right to receive a portion of the management fees and income incentive fees with respect to the Company’s ownership in GACP II. Excluding the effects of waivers, the ratio of total expenses to average net assets would have been 7.65% for the six months ended June 30, 2018. The GACP II investment was made in 2018, and as such, the 2017 ratios were not affected.

⁽⁸⁾	Not annualized.

⁽⁹⁾	Asset coverage ratio is equal to (i) the sum of (A) net assets at end of period and (B) total debt outstanding at end of period, divided by (ii) total debt outstanding at the end of the period.

The Company’s management evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. ~~There have~~Other than the item below, there has been no subsequent events that occurred during such period that would require disclosure in this Form10-Q or would be required to be recognized in the consolidated financial statements as of ~~September~~June 30, ~~2017~~2018 and for the ~~nine~~six months ended ~~September~~June 30, ~~2017.~~2018.

The Company issued common shares and received gross proceeds of approximately $25 million subsequent to June 30, 2018.

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

The information contained in this section should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. This discussion also should be read in conjunction with the “Cautionary Statement Regarding Forward Looking Statements” set forth on page 1 of this Quarterly ReportonForm 10-Q. In this report, “we,” “us,” “our” and “Company” refer to Crescent Capital BDC, Inc. and its consolidated subsidiaries.

We are a specialty finance company focused on lending to middle-market companies and are incorporated under the laws of the State of Delaware on February 5, 2015 (Inception). We have elected to be treated as a business development company (BDC) under the Investment Company Act of 1940, as amended (the 1940 Act). In addition, the Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code). As such, we are required to comply with various regulatory requirements, such as the requirement to invest at least 70% of our assets in “qualifying assets,” source of income limitations, asset diversification requirements, and the requirement to distribute annually at least 90% of our taxable income andtax-exempt interest.

The Company is managed by CBDC Advisors, LLC (the “Advisor”), an investment adviser that is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940. CBDC Administration, LLC (the “Administrator”) provides the administrative services necessary for the Company to operate. Company management consists of investment and administrative professionals from the Advisor and Administrator along with the Company’s Board of Directors (the “Board”). The Advisor directs and executes the investment operations and capital raising activities of the Company subject to oversight from the Board, which sets the broad policies of the Company. The Board has delegated investment management of the Company’s investment assets to the Advisor. The Board consists of five directors, three of whom are independent.

The Company’s primary investment objective is to maximize the total return to the Company’s stockholders in the form of current income and capital appreciation through debt and related equity investments. The Company seeks to achieve its investment objectives by investing primarily in secured debt (including senior secured first-lien, unitranche and senior secured second-lien debt) and unsecured debt (including senior unsecured, mezzanine and subordinated debt), as well as related equity securities of private U.S. middle-market companies. We may purchase interests in loans or make debt investments, either (i) directly from ~~our~~its target companies as primary market or private credit investments (i.e., private credit transactions), or (ii) primary or secondary market bank loan or high yield transactions in the broadly syndicated“over-the-counter” market (i.e., broadly syndicated loans and bonds). Although our focus is to invest in less liquid private credit transactions, broadly syndicated loans and bonds are generally more liquid than and complement our private credit transactions.

From February 5, 2015 (Inception) through June 25, 2015, the Company devoted substantially all of its efforts to establishing the business and raising capital commitments from private investors. On June 26, 2015, wethe Company entered into subscription agreements with several investors, including Crescent Capital Group LP and its affiliates (CCG LP), providing for the private placement of the Company’s common stock. The Company commenced investment operations on June 26, 2015 (Commencement).

We expect our investment activity to vary substantially from period to period depending on many factors, the general economic environment, the amount of capital we have available to us, the level of merger and acquisition activity for middle-market companies, including the amount of debt and equity capital available to such companies and the competitive environment for the type of investments we make. In addition, as part of our risk strategy on investments, we may reduce certain levels of investments through partial sales or syndication to additional investors.

We must not invest in any assets other than “qualifying assets” specified in the 1940 Act, unless, at the time the investments are made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Pursuant to rules adopted by the SEC, “eligible portfolio companies” include certain companies that do not have any securities listed on a national securities exchange and public companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million.

Our investment activities are managed by the Advisor, which will be responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments and monitoring our investments and portfolio companies on an ongoing basis. The Advisor has entered into a Resource Sharing Agreement (the “Resource Sharing Agreement”) with Crescent Capital Group LP (“CCG LP”), pursuant to which CCG LP will provide the Advisor with experienced investment professionals (including the members of the Advisor’s investment committee) and access to the resources of CCG LP so as to enable the Advisor to fulfill its obligations under the Investment Advisory Agreement. Through the Resource Sharing Agreement, the Advisor intends to capitalize on the deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of CCG LP’s investment professionals.

In connection with the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the period during which capital may be called from stockholders (the “Commitment Period”). The Commitment Period was extended to the earlier of (i) that date of an initial public offering of the Company’s common stock that results in an unaffiliated public float of at least the lower of (i) $75 million and (ii) 15% of the aggregate capital commitments received by the Company prior to the date of such initial public offering (a “Qualified IPO”) and (ii) June 30, 2020. In exchange for the Commitment Period extension, the Advisor agreed to waive its rights under the Investment Advisory Agreement to the income incentive fee for the period from April 1, 2018 through the earlier of (i) the date of a Qualified IPO or (ii) the dissolution and wind down of the Company.

We generate revenue primarily in the form of interest income on debt investments and, to a lesser extent, capital gains and distributions, if any, on equity securities that we may acquire in portfolio companies. Certain investments may have contractual PIK interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable.

In addition, we may receive fees for services provided to portfolio companies by the Advisor under the Investment Advisory Agreement. The services that the Advisor provides vary by investment, but generally include syndication, structuring or diligence fees, and fees for providing managerial assistance to our portfolio companies. We also generate revenue in the form of commitment or origination fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts into income over the life of the loan. Fees for providing managerial assistance to our portfolio companies are generallynon-recurring and are recognized as revenue when services are provided. In certain instances where the Company is invited to participate as aco-lender in a transaction and does not provide significant services in connection with the investment, all or a portion of any loan fees received by the Company in such situations will be deferred and amortized over the investment’s life using the effective yield method.

Our primary operating expenses include the payment of Management fees and Incentive fees to the Advisor under the Investment Advisory Agreement, our allocable portion of overhead expenses under the administration agreement with our Administrator (the “Administration Agreement”), operating costs associated with oursub-administration, custodian and transfer agent agreements with State Street Bank and Trust Company (the“Sub-Administration Agreements”) and other operating costs described below. The Management and Incentive fees compensate our investment adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all otherout-of-pocket costs and expenses of our operations and transactions, including:

allocated organization costs from the Advisor incurred prior to the commencement of our operations up to a maximum of $1.5 million;

the cost of calculating our net asset value, including the cost of any third-party valuation services;

fidelity bond, directors’ and officers’ liability insurance and other insurance premiums;

direct costs, such as printing, mailing, long distance telephone and staff;

~~See accompanying notes.~~

fees and expenses associated with independent audits and outside legal costs;

independent directors’ fees and expenses;

administration fees and expenses, if any, payable under the Administration Agreement (including payments based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, rent and the allocable portion of the cost of certain professional services provided to the Company, including but not limited to, our chief compliance officer, chief financial officer and their respective staffs);

U.S. federal, state and local taxes;

the cost of effecting sales and repurchases of shares of our common stock and other securities;

fees payable to third parties relating to making investments, includingout-of-pocket fees and expenses associated with performing due diligence and reviews of prospective investments;

out-of-pocket fees and expenses associated with marketing efforts;

federal and state registration fees and any stock exchange listing fees;

brokerage commissions;

costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws;

debt service and other costs of borrowings or other financing arrangements; and

all other expenses reasonably incurred by us in connection with making investments and administering our business.

We have agreed to repay the Advisor for initial organization costs and equity offering costs incurred prior to the commencement of operations up to a maximum of $1.5 million on a pro rata basis over the first $350 million of invested capital not to exceed 3 years from the initial capital commitment. The Advisor has agreed to extend the reimbursement period for the initial organization costs and equity offering costs to June 30, 2019. The Advisor is responsible for organization and private equity offerings costs in excess of $1.5 million.

We expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines. Incentive Fees and costs relating to future offerings of securities would be incremental.

Leverage

Our financing facilities allow us to borrow money and lever our investment portfolio, subject to the limitations of the 1940 Act, with the objective of increasing our yield. This is known as “leverage” and could increase or decrease returns to our stockholders.

The use of leverage involves significant risks. As a BDC, with certain limited exceptions, we will only be permitted to borrow amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 2 to 1 after such borrowing. Short-term credits necessary for the settlement of securities transactions and arrangements with respect to securities lending will not be considered borrowings for these purposes. The amount of leverage that we employ will depend on our Advisor’s and our Board assessment of market conditions and other factors at the time of any proposed borrowing.

See accompanying notes

PORTFOLIO INVESTMENT ACTIVITY

We seek to create a broad and varied portfolio that generally includes senior secured first-lien, ~~“unitranche” (which are loans that combine features of first-lien, second-lien and mezzanine debt, generally in a first-lien position),~~unitranche, senior secured second lien and subordinated loans and minority equity ~~securities by investing in the~~ securities of U.S. middle market companies. The size of our individual investments will vary proportionately with the size of our capital base. We generally invest in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. These securities have speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In addition, many of our debt investments have floating interest rates that reset on a periodic basis and typically do not fully pay down principal prior to ~~maturity, which may increase our risk of losing part or all of our investment.~~maturity.

As of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, our portfolio at fair value was comprised of the following:


	September 30, 2017				December 31, 2016				June 30, 2018				December 31, 2017
($ in millions)	Fair Value (1)		Percentage		Fair Value (1)		Percentage		Fair Value (1)		Percentage		Fair Value (1)		Percentage
Senior secured first-lien	$	205.7		64.5%	$	156.9		68.9%	$	255.4		57.9%	$	212.0		62.2%
Unitranche		29.8		9.4		19.4		8.5		66.6		15.1		42.5		12.5
Senior secured second-lien		67.7		21.2		42.5		18.7		76.6		17.4		70.7		20.7
Unsecured		5.5		1.7		5.0		2.2		5.5		1.3		5.6		1.7
Equity		10.1		3.2		3.9		1.7		36.6		8.3		9.9		2.9

Total investments	$	318.8		100.0%	$	227.7		100.0%	$	440.7		100.0%	$	340.7		100.0%

(1)	Includes unfunded commitments at fair value of ~~$16.9~~$43.5 million and ~~$9.8~~$21.6 million as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively.

~~See accompanying notes.~~

The following table shows the asset mix of our new investment commitments for the three months ended ~~September~~June 30, 2018 and June 30, 2017, and ~~September 30, 2016, and~~ for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016:~~2017:


	Three Months Ended September 30, 2017				Three Months Ended September 30, 2016				Three Months Ended June 30, 2018				Three Months Ended June 30, 2017
($ in millions)	Cost		Percentage		Cost		Percentage		Cost		Percentage		Cost		Percentage
Senior secured first-lien	$	24.4		68.6%	$	40.6		81.2%	$	40.5		37.7%	$	11.4		36.5%
Unitranche		9.3		26.2		0.5		1.1		32.8		30.6		—		—
Senior secured second-lien		1.8		5.2		7.9		15.7		7.4		6.9		16.0		51.0
Unsecured		—		—		—		—		—		—		—		—
Equity		0.0		0.0		1.0		2.0		26.7		24.8		3.9		12.5

Total investment commitments	$	35.5		100.0%	$	50.0		100.0%	$	107.4		100.0%	$	31.3		100.0%


	Nine Months Ended September 30, 2017				Nine Months Ended September 30, 2016				Six Months Ended June 30, 2018				Six Months Ended June 30, 2017
($ in millions)	Cost		Percentage		Cost		Percentage		Cost		Percentage		Cost		Percentage
Senior secured first-lien	$	80.8		62.5%	$	78.3		81.8%	$	86.3		56.2%	$	56.4		60.2%
Unitranche		9.3		7.2		4.3		4.5		32.8		21.4		—		—
Senior secured second-lien		33.1		25.7		12.1		12.7		7.8		5.1		31.3		33.4
Unsecured		0.6		0.5		—		—		0.0		0.0		0.6		0.7
Equity		5.3		4.1		1.0		1.0		26.7		17.3		5.3		5.7

Total investment commitments	$	129.1		100.0%	$	95.7		100.0%	$	153.6		100.0%	$	93.6		100.0%

For the three months ended ~~September~~June 30, ~~2017,~~2018, we had principal repayments of ~~$16.5~~$22.5 million. For this period, we had sales of securities in ~~three~~one portfolio ~~companies~~company aggregating approximately ~~$3.2~~$0.9 million in net proceeds. For the three months ended ~~September~~June 30, ~~2017,~~2018, we had a net of unfunded commitments portfolio increase of ~~$14.2 million aggregate principal amount (amortized cost).~~

For the nine months ended September 30, 2017, we had principal repayments of $32.2 million. For this period, we had sales of securities in fifteen portfolio companies aggregating approximately $10.8 million in net proceeds. For the nine months ended September 30, 2017, we had a net portfolio increase of $81.1$70.5 million aggregate principal amount (amortized cost).

For the three months ended ~~September~~June 30, ~~2016,~~2017, we had principal repayments of ~~$6.8~~$7.4 million. For this period, we had sales of securities in ~~six~~four portfolio companies aggregating approximately ~~$5.8~~$2.9 million in net proceeds. For the three months ended ~~September~~June 30, ~~2016,~~2017, we had a net of unfunded commitments portfolio increase of ~~$33.4~~$22.1 million aggregate principal amount (amortized cost).

See accompanying notes

For the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2018, we had principal repayments of ~~$13.2~~$52.5 million. For this period, we had sales of securities in ~~nineteen~~five portfolio companies aggregating approximately ~~$10.3~~$2.4 million in net proceeds. For the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2018, we had a net of unfunded commitments portfolio increase of ~~$67.5~~$79.8 million aggregate principal amount (amortized cost).

For the six months ended June 30, 2017, we had principal repayments of $15.6 million. For this period, we had sales of securities in twelve portfolio companies aggregating approximately $7.8 million in net proceeds. For the six months ended June 30, 2017, we had a net of unfunded commitments portfolio increase of $66.9 million aggregate principal amount (amortized cost).

The following table presents certain selected information regarding our investment portfolio at fair value as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016:~~2017:

       September 30, 2017         December 31, 2016
Weighted average total yield to maturity of
debt and income producing securities (at
fair value)
             7.6%           7.3%
Weighted average total yield to maturity of
debt and income producing securities (at
cost)
             8.0%           7.5%
Weighted average interest rate of debt and
income producing securities
             7.6%           7.2%
Percentage of debt bearing a floating rate
           91.8%         90.8%
Percentage of debt bearing a fixed rate
             8.2%           9.2%
Number of portfolio companies
             79              95

~~See accompanying notes.~~

       June 30, 2018            December 31, 2017
Weighted average total yield to maturity of debt and income producing securities (at fair value)
             8.5%              8.0%
Weighted average total yield to maturity of debt and income producing securities (at cost)
             8.6%              8.3%
Weighted average interest rate of debt and income producing securities
             8.2%              7.9%
Percentage of debt bearing a floating rate
           92.9%            91.3%
Percentage of debt bearing a fixed rate
             7.1%              8.7%
Number of portfolio companies
             80                 80

The following table shows the amortized cost of our performing andnon-accrual investments as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016.~~2017.


	September 30, 2017				December 31, 2016				June 30, 2018				December 31, 2017
($ in millions)	Amortized Cost (1)		Percentage		Amortized Cost (1)		Percentage		Amortized Cost (1)		Percentage		Amortized Cost (1)		Percentage
Performing	$	314.3		100.0%	$	226.1		100.0%	$	432.7		98.2%	$	338.9		100.0%
Non-accrual		—		—		—		—		7.9		1.8		—		—

Total assets	$	314.3		100.0%	$	226.1		100.0%	$	440.6		100.0%	$	338.9		100.0%

(1)	Includes unfunded commitments at cost of ~~$16.9~~$43.6 million and ~~$9.9~~$21.7 million as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively.

Loans are generally placed onnon-accrual status when there is reasonable doubt that principal or interest will be collected in full.Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. Management may determine to not place a loan onnon-accrual status if the loan has sufficient collateral value and is in the process of collection. See Note 2 to the consolidated financial statements included in Part I, Item 1 of this10-Q for more information on the accounting policies.

The Advisor monitors our portfolio companies on an ongoing basis. The Advisor monitors the financial trends of each portfolio company to determine if it is meeting its business plans and to assess the appropriate course of action for each company. The Advisor has a number of methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:

assessment of success of the portfolio company in adhering to its business plan and compliance with covenants;

review of monthly and quarterly financial statements and financial projections for portfolio companies.

contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments;

comparisons to other companies in the industry; and

possible attendance at, and participation in, board meetings.

See accompanying notes

As part of the monitoring process, the Advisor regularly assesses the risk profile of each of our investments and, on a quarterly basis, grades each investment on a risk scale of 1 to 5. Risk assessment is not standardized in our industry and our risk assessment may not be comparable to ones used by our competitors. Our assessment is based on the following categories:

1	Involves the least amount of risk in our portfolio. The investment/borrower is performing above expectations since investment, and the trends and risk factors are generally favorable, which may include the financial performance of the borrower or a potential exit.

2	Involves an acceptable level of risk that is similar to the risk at the time of investment. The investment/borrower is generally performing as expected, and the risk factors are neutral to favorable.

Involves an investment/borrower performing below expectations and indicates that the investment’s risk has increased somewhat since investment. The borrower’s loan payments are generally not past due and more likely than not the borrower will remain in compliance with debt covenants. An investment rating of 3 requires closer monitoring.

Involves an investment/borrower performing materially below expectations and indicates that the loan’s risk has increased materially since investment. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due). Placing loans onnon-accrual status should be considered for investments rated 4.

Involves an investment/borrower performing substantially below expectations and indicates that the loan’s risk has substantially increased since investment. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 5 are not anticipated to be repaid in full and the fair market value of the loan should be reduced to the anticipated recovery amount. Loans with an investment rating of 5 should be placed onnon-accrual status.

~~See accompanying notes.~~

The following table shows the distribution of our investments on the 1 to 5 investment performance rating scale at fair value as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016.~~2017. Investment performance ratings are accurate only as of those dates and may change due to subsequent developments relating to a portfolio company’s business or financial condition, market conditions or developments, and other factors.


	September 30, 2017 (1)				December 31, 2016 (1)				June 30, 2018 (1)				December 31, 2017 (1)
Investment Performance Rating	Investments at Fair Value ($ in millions)		Percentage of Total Portfolio		Investments at Fair Value ($ in millions)		Percentage of Total Portfolio		Investments at Fair Value ($ in millions)		Percentage of Total Portfolio		Investments at Fair Value ($ in millions)		Percentage of Total Portfolio
1	$	0.8		0.3%	$	—		— %	$	11.8		2.7%	$	0.8		0.3%
2		273.2		85.7		220.4		96.8		384.2		87.2		295.5		86.7
3		44.8		14.0		7.3		3.2		37.9		8.6		44.4		13.0
4		—		—		—		—		6.8		1.5		—		—
5		—		—		—		—		—		—		—		—

Total	$	318.8		100.0%	$	227.7		100.0%	$	440.7		100.0%	$	340.7		100.0%

(1)	Includes unfunded commitments at fair value of ~~$16.9~~$43.5 million and ~~$9.8~~$21.6 million as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively.

As of June 30, 2018, the Company had one investment onnon-accrual status, which represented 2.0% and 1.7% of the total investments at cost and fair value, respectively. As of December 31, 2017, no loans had been placed onnon-accrual status by the Company. The remaining debt investments were performing and current on their interest payments as of June 30, 2018 and December 31, 2017.

See accompanying notes

RESULTS OF OPERATIONS

Operating results for the three months ended ~~September~~June 30, 2018 and June 30, 2017 and ~~September 30, 2016 and~~ for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016,~~2017, were as follows:


	For the three months ended September 30, 2017		For the three months ended September 30, 2016		For the nine months ended September 30, 2017		For the nine months ended September 30, 2016		For the three months ended June 30, 2018			For the three months ended June 30, 2017		For the six months ended June 30, 2018		For the six months ended June 30, 2017
Total investment income	$	6,186,137	$	3,456,059	$	15,942,809	$	8,869,706	$	7,250,952		$	5,291,948	$	14,061,933	$	9,756,672
Less: Total expenses		3,330,110		1,873,387		8,891,225		5,075,364		3,503,981			3,017,321		7,170,869		5,561,115

Net investment income before taxes	$	2,856,027	$	1,582,672	$	7,051,584	$	3,794,342	$	3,746,971		$	2,274,627	$	6,891,064	$	4,195,557
Income taxes		—		800		1,689		1,600
Income and excise taxes										7,600			1,600		6,821		1,689

Net investment income		2,856,027		1,581,872		7,049,895		3,792,742		3,739,371			2,273,027		6,884,243		4,193,868
Net realized gain (loss) on investments (1)		(87,643)		(467)		(351,570)		(403,372)		(41,170)			(278,336)		(214,159)		(263,927	)
Net unrealized appreciation (depreciation) on investments (1)		(37,227)		1,623,339		2,539,686		4,025,580		(1,397,426)			976,701		(1,558,648)		2,576,913
Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments		(380,145)		—		(380,145)		—		(25,907	)		—		5,499		—

Net increase in net assets resulting from operations	$	2,351,012	$	3,204,744	$	8,857,866	$	7,414,950	$	2,274,868		$	2,971,392	$	5,116,935	$	6,506,854

(1) Includes foreign exchange hedging activity. Investment Income
	For the three months ended September 30, 2017		For the three months ended September 30, 2016		For the nine months ended September 30, 2017		For the nine months ended September 30, 2016
Interest from investments	$	6,092,354	$	3,451,311	$	15,775,733	$	8,864,374
Dividend Income		—		—		—		—
Other income		93,783		4,748		167,076		5,332

Total	$	6,186,137	$	3,456,059	$	15,942,809	$	8,869,706

(1)	Includes foreign currency transactions and translation.

Investment Income

~~See accompanying notes.~~

   For the three
months ended
June 30, 2018    For the three
months ended
June 30, 2017    For the six
months ended
June 30, 2018    For the six
months ended
June 30, 2017
Interest from investments
   $ 7,171,832    $ 5,238,587    $ 13,850,506    $ 9,683,379
Dividend Income
   —    —    —    —
Other income
   79,120    53,361    211,427    73,293








Total
   $ 7,250,952    $ 5,291,948    $ 14,061,933    $ 9,756,672

Interest from investments, which includes amortization of upfront fees and prepayment fees, increased from ~~$3.5~~$5.2 million for the three months ended ~~September~~June 30, ~~2016 compared~~2017 to ~~$6.1~~$7.2 million for the three months ended ~~September~~June 30, ~~2017,~~2018, due to the increase in the size of our portfolio. The average size of our total investment portfolio net of unfunded commitments increased from ~~$196.5~~$272.1 million during the three months ended ~~September~~June 30, ~~2016~~2017 to ~~$306.2~~361.8 million during the three months ended ~~September~~June 30, ~~2017.~~2018. Included in interest from investments for the three months ended June 30, 2018 and 2017 is $0.0 million and $0.0 million, respectively, in prepayment fees and $0.1 million and $0.0 million, respectively, in accelerated accretion of upfront fees. We did not have dividend income for the three months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016.~~2017. Other investment income ~~primarily~~ relates to the amortization of loan administration fees earned as the administration ~~agent.~~agent and other miscellaneous fee income.

Interest from investments, which includes amortization of upfront fees and prepayment fees, increased from ~~$8.9~~$9.7 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016 compared~~2017 to ~~$15.7~~$13.9 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, due to the increase in the size of our portfolio. The average size of our total investment portfolio net of unfunded commitments increased from ~~$174.7~~$190.1 million during the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 to ~~$278.7~~346.9 million during the ~~nine~~six months ended ~~September~~June 30, ~~2017.~~2018. Included in interest from investments for the six months ended June 30, 2018 and 2017 is $0.0 million and $0.0 million, respectively, in prepayment fees and $0.4 million and $0.0 million, respectively, in accelerated accretion of upfront fees. We did not have dividend income for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016.~~2017. Other investment income ~~primarily~~ relates to the amortization of loan administration fees earned as the administration ~~agent.~~agent and other miscellaneous fee income.

See accompanying notes

Expenses


	For the three months ended September 30, 2017		For the three months ended September 30, 2016		For the nine months ended September 30, 2017		For the nine months ended September 30, 2016		For the three months ended June 30, 2018		For the three months ended June 30, 2017		For the six months ended June 30, 2018		For the six months ended June 30, 2017
Interest and credit facility expenses	$	1,416,125	$	746,644	$	3,752,347	$	1,904,740	$	1,956,208	$	1,290,790	$	3,608,168	$	2,336,222
Management fees		710,176		432,213		1,982,695		1,179,301		795,246		668,292		1,532,998		1,272,519
Income Incentive Fees		504,005		63,956		1,118,540		63,956		—		392,977		554,977		614,535
Directors’ fees		72,500		67,250		217,500		217,167		72,500		72,500		145,000		145,000
Professional fees		184,802		160,000		536,368		546,273		189,632		176,566		375,080		351,566
Organization expenses		16,226		19,470		56,790		61,657		32,452		16,226		56,790		40,564
Other general and administrative expenses		426,276		383,854		1,226,985		1,102,270		457,943		399,970		897,856		800,709

Total expenses	$	3,330,110	$	1,873,387	$	8,891,225	$	5,075,364	$	3,503,981	$	3,017,321	$	7,170,869	$	5,561,115

Interest and ~~Credit Facility Expenses~~credit facility expenses

Interest and credit facility expenses include interest, amortization of deferred financing costs, upfront commitment fees and unused fees on the Revolving Credit Facility, Revolving Credit Facility II and SPV Asset Facility. The Company first drew on the Revolving Credit Facility in July 2015, on the SPV Asset Facility in April 2016, and on the Revolving Credit Facility II in June 2017. Interest and credit facility expenses increased from ~~$0.7~~$1.3 million for the three months ended ~~September~~June 30, ~~2016~~2017 to ~~$1.4~~$2.0 million for the three months ended ~~September~~June 30, ~~2017.~~2018. This increase was primarily due to an increase 1) in the weighted average debt outstanding from ~~$85.2~~$130.9 million for the three months ended ~~September~~June 30, ~~2016~~2017 to ~~$139.7~~$167.5 million for the three months ended ~~September~~June 30, ~~2017. Average~~2018 and 2) an increase in the average interest rate ~~(excludes~~(excluding deferred upfront financing costs and unused fees) on ~~our~~the weighted average debt outstanding from 3.2% for the three months ended ~~September~~June 30, 2017 ~~and September~~to 4.1% for the three months ended June 30, ~~2016 were 3.3% and 2.6%, respectively.~~2018.

Interest and credit facility expenses increased from ~~$1.9~~$2.3 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 to ~~$3.8~~$3.6 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017.~~2018. This increase was primarily due to an increase 1) in the weighted average debt outstanding from ~~$74.2~~121.3 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 to ~~$127.5~~$159.3 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017. Average~~2018 and 2) an increase in the average interest rate ~~(excludes~~(excluding deferred upfront financing costs and unused fees) on ~~our~~the weighted average debt outstanding from 3.1% for the ~~nine~~six months ended ~~September~~June 30, 2017 ~~and September~~to 3.9% for the six months ended June 30, ~~2016 were 3.2% and 2.3%, respectively.~~2018.

Management fees

Management fees ~~will be~~are calculated and payable quarterly in arrears at an annual rate of 1.5% of our gross assets, including assets acquired through the incurrence of debt but excluding any cash and cash equivalents. The Advisor, however, has agreed to waive its right to receive management fees in excess of the sum of (i) 0.25% of the aggregate committed but undrawn capital and (ii) 0.75% of the aggregate gross assets excluding cash and cash equivalents (including capital drawn to pay the Company’s expenses) during any

period prior to a qualified initial public offering, as defined by the Investment Advisory Agreement (“Qualified IPO”). Management fees, net of waived management fees, increased from ~~$0.4 million for the three months ended September 30, 2016 to~~ $0.7 million for the three months ended ~~September~~June 30, 2017 to $0.8 million for the three months ended June 30, 2018 due to the increase in total assets, which increased from an average of ~~$199.3~~$285.7 million for the three months ended ~~September~~June 30, ~~2016~~2017 to an average of ~~$304.0~~$374.3 million for the three months ended ~~September~~June 30, ~~2017.~~2018. Waived management fees for the three months ended ~~September~~June 30, 2018 and June 30, 2017 ~~and September 30, 2016~~ were approximately ~~$0.4~~$0.6 million and ~~$0.3~~$0.4 million, respectively. The Advisor ~~will~~is not be permitted to recoup any waived amounts at any time.

~~See accompanying notes.~~

Management fees, net of waived management fees, increased from ~~$1.2~~$1.3 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 to ~~$2.0~~$1.5 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 due to the increase in total assets, which increased from an average of ~~$176.2~~$265.7 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 to an average of ~~$277.0~~$359.5 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017.~~2018. Waived management fees for the ~~nine~~six months ended ~~September~~June 30, 2018 and June 30, 2017 ~~and September 30, 2016~~ were approximately ~~$1.1~~$1.0 million and ~~$0.8~~$0.7 million, respectively.

Income incentive fees

Income incentive fees ~~increased~~decreased from ~~$0.1~~$0.4 million and $0.6 million for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017, respectively, to ~~$0.5 million~~zero and ~~$1.1~~$0.6 million for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, respectively. The ~~increase~~decrease was due to the~~Pre-Incentive~~ ~~Fee Net Investment Income (as defined below), expressed as a rate of return on the value of our net assets (defined as total assets less indebtedness, before taking into account any~~ Advisor agreeing to waive its rights to income incentive fees ~~payable during the period) as of the preceding quarter, exceeding 1.5% per quarter (the hurdle rate).~~effective April 1, 2018. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, income incentive fees as a percentage ofPre-Incentive Fee Net Investment Income was ~~15.0%~~0.0% and ~~13.7%~~7.5% compared to ~~3.9%~~14.7% and ~~1.7%~~12.8% for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016, respectively.~~2017.“Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies, but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the calendar quarter (including the base management fee, taxes, any expenses payable under the Investment

See accompanying notes

Advisory Agreement and the Administration Agreement and any interest expense, but excluding the Incentive fee).Pre-Incentive Fee Net Investment Income includes accrued income that we have not yet received in cash, such as debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities.

Professional Fees and Other General and Administrative Expenses

Professional fees generally include expenses from independent auditors, tax advisors, legal counsel and third party valuation agents. Other general and administrative expenses generally include expenses from theSub-Administration Agreements, insurance premiums, overhead and staffing costs allocated from the Administrator and other miscellaneous general and administrative costs associated with the operations and investment activity of the Company. Professional fees remained flat at $0.2 million for the three months ended ~~September~~June 30, ~~2016~~2018 and September 30, 2017, respectively, while other general and administrative expenses also remained flat at $0.4 million for the three months ended September 30, 2016 and September 30, 2017, respectively.

~~Professional fees remained flat at $0.5 million for the nine months ended September 30, 2016 and September~~June 30, 2017, respectively, while other general and administrative expenses increased from ~~$1.1~~$0.4 million for the ~~nine~~three months ended ~~September~~June 30, ~~2016~~2017 to ~~$1.2~~$0.5 million for the ~~nine~~three months ended ~~September~~June 30, ~~2017.~~2018. The net increase in costs was due to an increase in costs associated with servicing a growing investment portfolio.

Professional fees remained flat at $0.4 million for the six months ended June 30, 2018 and June 30, 2017, respectively, while other general and administrative expenses increased from $0.8 million for the six months ended June 30, 2017 to $0.9 million for the three months ended June 30, 2018. The net increase in costs was due to an increase in costs associated with servicing a growing investment portfolio.

Organization expenses

We have agreed to repay the Advisor for the organization costs and offering costs (not to exceed $1.5 million) on a pro rata basis over the first $350 million of capital contributed to the Company. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, we called ~~$10.0 million~~$20.0 and $35.0 million, respectively, and the Advisor allocated $0.0 million and $0.1 million, respectively of organization costs to the Company, which was included in the Consolidated Statements of Operations.

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, the Advisor also allocated $0.0 million and $0.1 million, respectively of equity offering costs to the Company that was recorded as an offset toPaid-in capital in excess of par value on the Consolidated Statement of Assets and Liabilities.

During the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, we called ~~$12.0~~$10.0 million and ~~$38.0~~$25.0 million, respectively, and the Advisor allocated $0.0 million and ~~$0.1~~$0.0 million, respectively of organization costs to the Company, which was included in the Consolidated Statements of Operations. During the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, the Advisor also allocated $0.0 million and $0.1 million, respectively of equity offering costs to the Company that was recorded as an offset toPaid-in capital in excess of par value on the Consolidated Statement of Assets and Liabilities.

Income Tax Expense, Including Excise Tax

We have elected to be treated as a RIC under the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must generally (among other requirements) timely distribute to our stockholders at least 90% of our investment company taxable income, as defined by the Code, for each year. In order to maintain our RIC status, we intend to make the requisite distributions to our stockholders which will generally relieve us from corporate-level income taxes.

year and (iii) any undistributed ordinary income and net capital gains from preceding years. Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions into the next tax year and pay a 4% excise tax on such income, as required. If we determine that our estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, we accrue excise tax on estimated excess taxable income as such taxable income is earned. For the three and six months ended June 30, 2018, the Company incurred an excise tax of $0 and $(779) respectively, of which $0 remained payable. There were no excise tax expenses or payables for the three and six months ended June 30, 2017.

See accompanying ~~notes.~~notes

Net Realized and Unrealized Gains and Losses

We value our portfolio investments quarterly and any changes in fair value are recorded as unrealized appreciation (depreciation) on investments. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016,~~2017, net realized gains (losses) and net unrealized appreciation (depreciation) on our investment portfolio were comprised of the following:

For the three
months ended
        September 30, 2017          For the three
months ended
        September 30, 2016          For the nine
months ended
        September 30, 2017          For the nine months
    ended September 30, 2016
Realized losses on investments
$ (121,126) $ (3,869) $ (408,679) $ (467,821)
Realized gains on investments
33,998 4,798 59,618 24,886
Realized gains on foreign currency transactions
327 373 1,075 59,239
Realized losses on foreign currency transactions
(842) (1,769) (3,584) (19,676)

Net realized gains (losses)
$ (87,643) $ (467) $ (351,570) $ (403,372)

Change in unrealized depreciation on investments
$ (97,551) $ 372,048 $ 16,482 $ 1,809,834
Change in unrealized appreciation on investments
228,673 1,141,466 2,987,389 1,761,430
Change in unrealized depreciation on foreign currency translation
(181,099) (23,891) (492,508) (25,061)
Change in unrealized appreciation on foreign currency translation
12,750 133,716 28,323 479,377

Net unrealized appreciation (depreciation)
$ (37,227) $ 1,623,339 $ 2,539,686 $ 4,025,580

~~Income Taxes~~

~~The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are“more-likely-than-not”~~ ~~to be sustained by the applicable tax authority. Tax positions not deemed to meet the“more-likely-than-not”~~ threshold are reversed and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to,~~on-going~~ ~~analyses of tax laws, regulations and interpretations thereof. The Company accounts for income taxes in conformity with ASC Topic 740 —~~ ~~Income Taxes~~ ~~(“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements.~~

The Company intends to comply with the applicable provisions of the Code, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. As of September 30, 2017, all tax filings of the Company since the inception on February 5, 2015 remain subject to examination by federal tax authorities. No such examinations are currently pending.

~~See accompanying notes.~~

CBDC Universal Equity, Inc. has elected to be a taxable entity (the “Taxable Subsidiary”). The Taxable Subsidiary permits the Company to hold equity investments in portfolio companies which are “pass through” entities for tax purposes and continue to comply with the “source income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiary is not consolidated with the Company for income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of its ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities are reflected in the Company’s consolidated financial statements. For the three and nine months ended September 30, 2017, the Company recognized a benefit/(provision) for taxes on unrealized appreciation/(depreciation) on investments of $(380,145) related to the Taxable Subsidiary. As of September 30, 2017, the Company had a deferred tax liability of $380,145 related to the Taxable Subsidiary. There were no deferred tax assets or liabilities related to the Taxable Subsidiary at December 31, 2016.


	For the three months ended June 30, 2018		For the three months ended June 30, 2017		For the six months ended June 30, 2018		For the six months ended June 30, 2017
Realized losses on investments	$	(49,097)	$	(281,589)	$	(234,477)	$	(287,553)
Realized gains on investments		4,901		4,263		15,158		25,620
Realized gains on foreign currency transactions		2,838		(169)		5,168		748
Realized losses on foreign currency transactions		188		(841)		(8)		(2,742)

Net realized gains (losses)	$	(41,170)	$	(278,336)	$	(214,159)	$	(263,927)

Change in unrealized depreciation on investments	$	(2,654,754)	$	133,284	$	(3,029,132)	$	(72,904)
Change in unrealized appreciation on investments		1,338,509		804,726		1,511,755		2,603,674
Change in unrealized depreciation on foreign currency translation		72,098		23,650		43,711		30,570
Change in unrealized appreciation on foreign currency translation		(153,279)		12,041		(84,982)		15,573

Net unrealized appreciation (depreciation)	$	(1,397,426)	$	976,701	$	(1,558,648)	$	2,576,913

Hedging

We may, but are not required to, enter into interest rate, foreign exchange or other derivative agreements to hedge interest rate, currency, credit or other risks. Generally, we do not intend to enter into any such derivative agreements for speculative purposes. Any derivative agreements entered into for speculative purposes are not expected to be material to the Company’s business or results of operations. These hedging activities, which will be in compliance with applicable legal and regulatory requirements, may include the use of various instruments, including futures, options and forward contracts. We will bear the costs incurred in connection with entering into, administering and settling any such derivative contracts. There can be no assurance any hedging strategy we employ will be successful.

We did not enter into any interest rate, foreign exchange or other derivative agreements during the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016.~~2017.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

At ~~September~~June 30, ~~2017,~~2018, we had ~~$7.8~~$9.2 million in cash on hand. The primary uses of our cash and cash equivalents are for (1) investments in portfolio companies and other investments and to comply with certain portfolio diversification requirements; (2) the cost of operations (including paying our Advisor); (3) debt service, repayment, and other financing costs; and, (4) cash distributions to the holders of our common shares.

We expect to generate additional cash from (1) future offerings of our common or preferred shares; (2) borrowings from our Revolving Credit Facility II, SPV Asset Facility and from other banks or lenders; and, (3) cash flows from operations.

Cash on hand of ~~$7.8~~$9.2 million combined with our uncalled capital commitments of ~~$228.0~~$185.7 million, ~~$17.1~~$13.0 million undrawn amount on our Revolving Credit Facility II and ~~$44.1~~$5.7 million undrawn amount on our SPV Asset Facility, is expected to be sufficient for our investing activities and to conduct our operations for the foreseeable future.

See accompanying notes

Capital Share Activity

Since June 26, 2015 (Commencement), we have entered into subscription agreements (collectively, the “Subscription Agreements”) with several investors, including CCG LP, providing for the private placement of our common shares. Under the terms of the Subscription Agreements, investors are required to fund drawdowns to purchase our common shares up to the amount of their respective capital commitments on anas-needed basis with a minimum of 10 business days’ prior notice. At ~~September~~June 30, ~~2017,~~2018, we had received capital commitments totaling ~~$389.0~~$391.7 million, of which $10.0 million was from CCG LP.

Since June 26, 2015 (Commencement), pursuant to the Subscription Agreements, we have delivered ~~eleven~~fourteen capital drawdown notices to our investors relating to the issuance of ~~8,097,569~~10,341,086 of our common shares for an aggregate offering of ~~$161.0~~$206.0 million. Proceeds from the issuance were used to fund our investing activities and for other general corporate purposes. As of ~~September~~June 30, ~~2017,~~2018, the Company received all amounts relating to the ~~eleven~~fourteen capital drawdown notices.

During the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, we issued ~~1,364.08~~5,943 and ~~3,141.93~~10,178 shares of our common stock, respectively, to investors who have opted into our dividend reinvestment plan for proceeds of ~~$27,799~~$119,838 and ~~$63,435.~~$205,458. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, we issued ~~468.90~~1,116 and ~~1,274.03~~1,778 shares of our common stock, respectively, to investors who have opted into our dividend reinvestment plan for proceeds of ~~$9,014~~$22,505 and ~~$24,701.~~$35,636.

~~See accompanying notes.~~

Debt

Debt consisted of the following as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016:~~2017:

   September 30, 2017
($ in millions)
   Aggregate Principal
    Amount Committed            Drawn
    Amount (4)        Amount
    Available (1)        Carrying
    Value (2)
SPV Asset Facility
   $ 125.0    $ 80.9    $ 44.1    $ 80.9
Revolving Credit Facility
   —    —    —    —
Revolving Credit Facility II (3)(5)
   75.0    58.3    17.1    58.0








Total Debt
   $ 200.0    $ 139.2    $ 61.2    $ 138.9


	December 31, 2016								June 30, 2018
($ in millions)	Aggregate Principal Amount Committed		Drawn Amount (4)		Amount Available (1)		Carrying Value (2)		Aggregate Principal Amount Committed		Drawn Amount (4)		Amount Available (1)		Carrying Value (2)
SPV Asset Facility	$	75.0	$	47.6	$	27.4	$	47.6	$	125.0	$	119.3	$	5.7	$	119.3
Revolving Credit Facility										—		—		—		—
Revolving Credit Facility II (3)(5)										85.0		72.3		13.0		72.0

Total Debt									$	210.0	$	191.6	$	18.7	$	191.3


									December 31, 2017
($ in millions)									Aggregate Principal Amount Committed		Drawn Amount (4)		Amount Available (1)		Carrying Value (2)
SPV Asset Facility									$	125.0	$	86.6	$	38.4	$	86.6
Revolving Credit Facility										—		—		—		—
Revolving Credit Facility (3)(5)		50.0		47.8		3.0		47.0		75.0		65.3		9.9		65.1

Total Debt	$	125.0	$	95.4	$	30.4	$	94.6	$	200.0	$	151.9	$	48.3	$	151.7

(1)	The amount available is subject to any limitations related to the respective debt facilities’ borrowing bases and foreign currency translation adjustments.

(2)	The difference between the drawn amount and the carrying value is attributable to the effect of foreign currency rates as of the balance sheet dates versus foreign currency rates at the time of the respectivenon-USD borrowings.

(3)	The Company had outstanding debt denominated in Pound Sterling (GBP) of 2.5 million and Euro (EUR) of 1.8 million on its Revolving Credit Facility ~~and Revolving Credit Facility~~ II.

(4)	For borrowings innon-USD, the drawn amount represents the USD equivalent at the time of borrowing (i.e. cost).

(5)	Total drawn amount payable after the effect of foreign currency translation as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, was ~~$57,910,419~~$71,959,703 and ~~$47,006,114,~~$65,044,546, respectively.

See accompanying notes

SPV Asset Facility

On March 28, 2016 Crescent Capital BDC Funding, LLC (“CBDC SPV”), a Delaware limited liability company and wholly owned and consolidated subsidiary of the Company, entered into a loan and security agreement (the “SPV Asset Facility”) with the Company as the collateral manager, seller and equityholder, CBDC SPV as the borrower, the banks and other financial institutions from time to time party thereto as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, collateral agent, and lender. The SPV Asset Facility is effective as of March 28, 2016. On February 8, 2017 the Company amended the SPV Asset Facility increasing the facility limit from $75 million to $125 million.

The maximum commitment amount under the SPV Asset Facility is $125 million, and may be increased with the consent of Wells Fargo or reduced upon request of the Company. Proceeds of the Advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to the Company in accordance with the SPV Asset Facility, and to pay related expenses. The maturity date is the earlier of: (a) the date the borrower voluntarily reduces the commitments to zero, (b) the Facility Maturity Date (March 28, 2021) and (c) the date upon which Wells Fargo declares the obligations due and payable after the occurrence of an Event of Default. Borrowings under the SPV Asset Facility bear interest at London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor. The Company pays unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The SPV Asset Facility includes customary covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature.

Also on March 28, 2016, the Company, as seller, and CBDC SPV, as purchaser, entered into a loan sale agreement whereby the Company will sell certain assets to CBDC SPV. We consolidate CBDC SPV in our consolidated financial statements and no gain or loss is expected to result from the sale of assets to CBDC SPV. We retain a residual interest in assets contributed to or acquired by CBDC SPV through our 100% ownership of CBDC SPV. The facility size is subject to availability under the borrowing base, which is based on the amount of CBDC SPV’s assets from time to time, and satisfaction of certain conditions, including an asset coverage test and certain concentration limits.

~~See accompanying notes.~~

~~Revolving Credit Facility~~

On June 29, 2015, we entered into the Revolving Credit Facility with Natixis, New York Branch (“Natixis”) as administrative agent (the “Administrative Agent”), and Natixis and certain of its affiliates as lenders. Proceeds from the Revolving Credit Facility may be used for investment activities, expenses, working capital requirements and general corporate purposes. The maximum principal amount of the Revolving Credit Facility is $50 million, subject to availability under the borrowing base. On October 23, 2015, the Company amended the Revolving Credit Facility to include a multi-currency tranche allowing the Company to borrow up to 15% of the principal amount committed under an alternative currency including Euro, Canadian Dollar and Pound Sterling (GBP). On June 29, 2016, the Company amended the Revolving Credit Facility decreasing the facility limit from $75 million to $50 million and extending the maturity date to June 29, 2017. The Company paid down in full and terminated the Revolving Credit Facility on June 29, 2017.

Revolving Credit Facility II

Borrowings under the Revolving Credit Facility II bear interest at London Interbank Offered Rate (“LIBOR”) plus a margin with no LIBOR floor. The Company may elect either the LIBOR or prime rate at the time of draw-down, and loans may be converted from one rate to another at any time, subject to certain conditions. The Company pays unused facility fees of 0.20% per annum on committed but undrawn amounts under the Revolving Credit Facility II. Interest is payable monthly in arrears. Any amounts borrowed under the Revolving Credit Facility II, and all accrued and unpaid interest, will be due and payable, on June 29, 2018. On June 28, 2018, the Company amended the Revolving Credit Facility II increasing the facility limit from $75 million to $85 million and extending the maturity date to June 29, 2019.

Revolving Credit Facility

On June 29, 2015, we entered into the Revolving Credit Facility with Natixis, New York Branch (“Natixis”) as administrative agent (the “Administrative Agent”), and Natixis and certain of its affiliates as lenders. Proceeds from the Revolving Credit Facility may be used for investment activities, expenses, working capital requirements and general corporate purposes. The maximum principal amount of the Revolving Credit Facility is $75 million, subject to availability under the borrowing base. On October 23, 2015, the Company amended the Revolving Credit Facility to include a multi-currency tranche allowing the Company to borrow up to 15% of the principal amount committed under an alternative currency including Euro, Canadian Dollar and Pound Sterling (GBP). On June 29, 2016, the Company amended the Revolving Credit Facility decreasing the facility limit from $75 million to $50 million and extending the maturity date to June 29, 2017. The Company paid down in full and terminated the Revolving Credit Facility on June 29, 2017.

For the three
months ended
      September 30, 2017      For the three
months ended
      September 30, 2016      For the nine
months ended
      September 30, 2017      For the nine months ended
September 30, 2016
Borrowing interest expense
$ 1,152,097 $ 554,851 $ 3,012,006 $ 1,298,341
Unused facility fees
64,630 48,841 172,197 139,941
Amortization of upfront commitment fees
160,336 110,274 459,932 275,287
Amortization of deferred financing costs
39,062 32,678 108,212 191,171

Total interest and credit facility expenses
$ 1,416,125 $ 746,644 $ 3,752,347 $ 1,904,740

Weighted average interest rate
3.3 % 2.6 % 3.2 % 2.3 %
Weighted average outstanding balance
$         139,727,139 $         85,171,506 $         127,512,491 $         74,170,227

See accompanying notes

The summary information regarding the SPV Asset Facility, Revolving Credit Facility II, and the Revolving Credit Facility for the three and six months ended June 30, 2018 and June 30, 2017, were as follows:


	For the three months ended June 30, 2018			For the three months ended June 30, 2017			For the six months ended June 30, 2018			For the six months ended June 30, 2017
Borrowing interest expense	$	1,716,550		$	1,039,257		$	3,107,391		$	1,859,909
Unused facility fees		42,662			55,556			108,716			107,567
Amortization of upfront commitment fees		158,543			159,494			315,394			299,596
Amortization of deferred financing costs		38,453			36,483			76,667			69,150

Total interest and credit facility expenses	$	1,956,208		$	1,290,790		$	3,608,168		$	2,336,222

Weighted average interest rate		4.1	%		3.2	%		3.9	%		3.1	%
Weighted average outstanding balance	$	167,452,665		$	130,888,883		$	159,340,902		$	121,303,940

To the extent we determine that additional capital would allow us to take advantage of additional investment opportunities, if the market for debt financing presents attractively priced debt financing opportunities, or if our Board otherwise determines that leveraging our portfolio would be in our best interest and the best interests of our stockholders, we may enter into credit facilities in addition to our Revolving Credit Facility II and SPV Asset Facility. We would expect any such credit facilities may be secured by certain of our assets and may contain advance rates based upon pledged collateral. The pricing and other terms of any such facilities would depend upon market conditions when we enter into any such facilities as well as the performance of our business, among other factors. In accordance with applicable SEC staff guidance and interpretations, as a BDC, with certain limited exceptions, we are only permitted to borrow amounts such that our asset coverage ratio, as defined in the 1940 Act, is at least 2 to 1 after such borrowing. As of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, our asset coverage ratio was ~~2.18~~2.07 to 1 and ~~2.35~~2.13 to 1, respectively. We may also refinance or repay any of our indebtedness at any time based on our financial condition and market conditions. See Note 6. Debt to our consolidated financial statements for more detail on the debt facilities.

~~See accompanying notes.~~

OFF BALANCE SHEET ARRANGEMENTS

Information on our off balance sheet arrangements is contained in Note 7. Commitments, Contingencies and Indemnifications to our consolidated financial statements.

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ materially. The critical accounting policies should be read in connection with our risk factors as disclosed herein and in our Registration Statement on Form 10.

In addition to the discussion below, our critical accounting policies are further described in Note 2. Summary of Significant Accounting Policies to our consolidated financial statements.

See accompanying notes

Investment Valuation

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 quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

In addition to using the above inputs in investment valuations, the Company applies the valuation policy approved by its Board that is consistent with ASC 820. Consistent with the valuation policy, the Company evaluates the source of inputs, including any markets in which its investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. When a security is valued based on prices provided by reputable dealers or pricing services (that is, broker quotes), the Company subjects those prices to various criteria in making the determination as to whether a particular investment would qualify for classification as a Level 2 or Level 3 investment. For example, the Company reviews pricing methodologies provided by dealers or pricing services in order to determine if observable market information is being used, versus unobservable inputs. Some additional factors considered include the number of prices obtained as well as an assessment as to their quality. Transfers between levels, if any, are recognized at the beginning of the period in which the transfers occur. During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, the Company recorded $0 in transfers from Level 3 to Level 2 and $44,613,267 in transfers from Level 2 to Level 3 due to a decrease in observable inputs in market data. During the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, the Company recorded ~~$17,000,233~~$0 in transfers from Level 3 to Level 2 and $4,850,000 in transfers from Level 2 to Level 3 due to ~~an increase~~a decrease in observable inputs in market data.

The Board oversees and supervises a multi-step valuation process, which includes, among other procedures, the following:

The valuation process begins with each investment being initially valued by the investment professionals responsible for the portfolio investment in conjunction with the portfolio management team.

The Advisor’s management reviews the preliminary valuations with the investment professionals. Agreed upon valuation recommendations are presented to the Audit Committee.

~~See accompanying notes.~~

The Audit Committee reviews the valuations presented and recommends values for each investment to the Board.

The Company currently conducts this valuation process on a quarterly basis.

In connection with debt and equity securities that are valued at fair value in good faith by the Board, the Board will engage independent third-party valuation firms to perform certain limited procedures that the Board has identified.

See accompanying notes

Equity Offering and Organization Expenses

The Company has agreed to repay the Advisor for initial organization costs and equity offering costs incurred prior to the commencement of its operations up to a maximum of $1.5 million on a pro rata basis over the first $350 million of invested capital not to exceed 3 years from the initial capital commitment on June 26, 2015. To the extent such costs relate to equity offerings, these costs are charged as a reduction of capital upon the issuance of common shares. To the extent such costs relate to organization costs, these costs are expensed in the Consolidated Statements of Operations upon the issuance of common shares. The Advisor is responsible for organization and private equity offerings costs in excess of $1.5 million. In connection with the 2018 Annual Meeting of Stockholders, the Company received shareholder approval to extend the period during which capital may be called from stockholders (the “Commitment Period”). The Commitment Period was extended to the earlier of (i) a Qualified IPO and (ii) June 30, 2020. With the approval of the Commitment Period extension, the Advisor agreed to extend the reimbursement period for the initial organization costs and equity offering costs to June 30, 2019. See Note 7. Commitments, Contingencies and Indemnifications for additional discussion of certain related party transactions with the Advisor.

The Advisor incurred costs on behalf of the Company of $794,450 of equity offering costs and $567,895 of organization costs through Commencement. For the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, the Advisor allocated to the Company $79,445 of equity offering costs and $56,790 of organization costs, of which $136,235 was included in Due to Advisor on the Consolidated Statements of Assets and Liabilities at ~~September~~June 30, ~~2017.~~2018. Since June 26, 2015 (Commencement) ~~through September 30, 2017,~~, the Advisor has allocated to the Company ~~$365,447~~$467,590 of equity offering costs and ~~$261,232~~$334,247 of organization costs.

Interest and Dividend Income Recognition

~~See accompanying notes.~~

See accompanying notes

Income Taxes

As of June 30, 2018, all tax filings of the Company since the inception on February 5, 2015 remain subject to examination by federal tax authorities. No such examinations are currently pending. In order for the Company not to be subject to federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of its net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding years. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% excise tax on this income. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. The Company will accrue excise tax on estimated undistributed taxable income as required. For the three and six months ended June 30, 2018, the Company incurred an excise tax of $0 and $0, respectively, of which $0 remained payable and included in accrued expenses and other liabilities on the Consolidated Statements of Assets and Liabilities. There were no excise tax expenses or payables for the three and six months ended June 30, 2017.

CBDC Universal Equity, Inc. is a taxable entity (the “Taxable Subsidiary”). The Taxable Subsidiary permits the Company to hold equity investments in portfolio companies which are “pass through” entities for tax purposes and continue to comply with the “source income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiary is not consolidated with the Company for income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of its ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities are reflected in the Company’s consolidated financial statements. For the six months ended June 30, 2018, the Company recognized a benefit/(provision) for taxes on unrealized appreciation/(depreciation) on investments of $5,499 related to the Taxable Subsidiary. There is a corresponding deferred tax liability of $211,649 related to the Taxable Subsidiary as of June 30, 2018. There were no deferred tax assets or liabilities related to the Taxable Subsidiary at June 30, 2017.

The Company intends to comply with the applicable provisions of the Code, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. As of June 30, 2018, all tax filings of the Company since the inception on February 5, 2015 remain subject to examination by federal tax authorities. No such examinations are currently pending.

New Accounting Standards

See accompanying notes

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are subject to financial market risks, including valuation risk, interest rate risk and currency risk.

Valuation Risk

We have invested, and plan to continue to invest, in illiquid debt and equity securities of private companies. These investments will generally not have a readily available market price, and we will value these investments at fair value as determined in good faith by our Board in accordance with our valuation policy. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material. See Note 2. Summary of Significant Account Policies to our consolidated financial statements for more details on estimates and judgments made by us in connection with the valuation of our investments.

Interest Rate Risk

Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. We also fund a portion of our investments with borrowings and our net investment income will be affected by the difference between the rate at which we invest and the rate at which we borrow. Accordingly, 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.

We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate-sensitive assets to our interest rate-sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

As of ~~September~~June 30, ~~2017, 91.8%~~2018, 92.9% of the investments at fair value in our portfolio were at variable rates, subject to interest rate floors. The Revolving Credit Facility II and SPV Asset Facility also bear interest at variable rates.

~~See accompanying notes.~~

Assuming that our Consolidated Statements of Assets and Liabilities as of ~~September~~June 30, ~~2017~~2018 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (considering interest rate floors for floating rate instruments):

($ in millions)


Basis Point Change	Interest Income		Interest Expense		Increase (decrease) in net assets resulting from operations		Interest Income		Interest Expense		Increase (decrease) in net assets resulting from operations
Up 300 basis points	$	8.6	$	4.2	$	4.4	$	12.4	$	5.7	$	6.7
Up 200 basis points	$	5.7	$	2.8	$	2.9	$	8.2	$	3.8	$	4.4
Up 100 basis points	$	2.9	$	1.4	$	1.5	$	4.1	$	1.9	$	2.2
Down 25 basis points	$	(0.7)	$	(0.3)	$	(0.4)	$	(1.0)	$	(0.5)	$	(0.5)
Down 100 basis points							$	(4.1)	$	(1.9)	$	(2.2)

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 that could affect our net income. Accordingly, we cannot assure you that actual results would not differ materially from the analysis above.

We may in the future hedge against interest rate fluctuations by using hedging instruments such as interest rate swaps, futures, options and forward contracts. While hedging activities may mitigate our exposure to adverse fluctuations in interest rates, certain hedging transactions that we may enter into in the future, such as interest rate swap agreements, may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio investments.

See accompanying notes

Currency Risk

From time to time, we may make investments that are denominated in a foreign currency. These investments are converted into U.S. dollars at the balance sheet date, exposing us to movements in foreign exchange rates. We may employ hedging techniques to minimize these risks, but we cannot assure you that such strategies will be effective or without risk to us. We may seek to utilize instruments such as, but not limited to, forward contracts to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates. We also have the ability to borrow in certain foreign currencies under our Revolving Credit ~~Facility.~~Facility II. Instead of entering into a foreign exchange forward contract in connection with loans or other investments we have made that are denominated in a foreign currency, we may borrow in that currency to establish a natural hedge against our loan or investment. To the extent the loan or investment is based on a floating rate other than a rate under which we can borrow under our Revolving Credit Facility II, we may seek to utilize interest rate derivatives to hedge our exposure to changes in the associated rate. As of ~~September~~June 30, ~~2017,~~2018, we had £2.5 million and €1.8 million outstanding on the Revolving Credit Facility II as a natural hedge against a £3.0 million investment and €1.8 million investment, respectively.

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule~~Rule~~ 13a-15 under the Securities Exchange Act of 1934). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our current disclosure controls and procedures are effective in timely alerting them to material information relating to us that is required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934.

Changes in Internal Control over Financial Reporting. There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

~~See accompanying notes.~~

PART II. OTHER INFORMATION

Item 1.

Legal Proceedings

From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under loans to or other contracts with our portfolio companies. We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us.

Item 1A.

Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form~~Form~~ 10-K for the fiscal year ended December 31, 2016, which could materially affect our business, financial condition and/or operating results. These risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Sales of unregistered securities

(a) None

(b) None

See accompanying notes

(c) Issuer purchases of equity securities

The following table provides information regarding purchases of our common shares by CCG LP for each month in the three month period ended ~~September~~June 30, ~~2017:~~2018:


Period	Average Price Paid per Share		Total Number of Shares Purchased		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
~~July 2017~~April 2018	$	—		—		—	$	4,362,861
~~August 2017~~May 2018		—		—		—		4,362,861
~~September 2017~~June 2018		—		—		—		4,362,861

Total	$	—		—		—	$	4,362,861

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

[Reserved]

Item 5.

Other Information

None.

~~See accompanying notes.~~

Item 6.
Exhibits.

(a) Exhibits.



3.1		Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form 10 (File No.~~No.~~ 000-55380) filed on June 5, 2015).

3.2		Bylaws (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form 10 ~~(File~~ (File No.~~No.~~ 000-55380) filed on June 5, 2015).

4.1		Dividend Reinvestment Plan (incorporated by reference to Exhibit 10.6 to the Company’s Registration Statement on Form 10 (File No.~~No.~~ 000-55380) filed on June 5, 2015).

10.1		Investment Advisory Agreement, dated June 2, 2015, by and between the Company and the Advisor (incorporated by reference to Exhibit 10.1 to the Company’s Registration Statement on Form 10 (File No.~~No.~~ 000-55380) filed on June 5, 2015).

10.2		Administration Agreement, dated June 2, 2015, by and between the Company and the Administrator (incorporated by reference to Exhibit 10.2 to the Company’s Registration Statement on Form 10 (File No.~~No.~~ 000-55380) filed on June 5, 2015).

10.3		Trademark License Agreement, dated April 30, 2015, by and between the Company and CCG LP (incorporated by reference to Exhibit 10.3 to the Company’s Registration Statement on Form 10 (File No.~~No.~~ 000-55380) filed on June 5, 2015).

10.4		Form of Advisory Fee Waiver Agreement by and between the Company and the Advisor (incorporated by reference to Exhibit 10.4 to the Company’s Registration Statement on Form 10 (File No.~~No.~~ 000-55380) filed on June 5, 2015).

10.5		Form of Subscription Agreement (incorporated by reference to Exhibit 10.5 to the Company’s Registration Statement on Form 10 (File No.~~No.~~ 000-55380) filed on June 5, 2015).

10.6		Custodian Agreement by and between the Company and State Street Bank and Trust Company (incorporated by reference to Exhibit 10.7 to the Company’s Registration Statement on Form 10 (File No.~~No.~~ 000-55380) filed on June 5, 2015).

10.7		Revolving Credit Agreement, dated June 29, 2015, among the Company, as Borrower, Natixis, New York Branch, as Administrative Agent and Lender (incorporated by reference to Exhibit ~~10.1~~3.2 to the Company’s Registration Statement on Form8-K filed on July2, 2015).

10.8    ~~Loan and Security~~Revolving Credit Agreement, dated March 28, 2016, among the Company as the Collateral Manager, Seller and Equityholder, Crescent Capital BDC Funding, LLC as the Borrower, the banks and other financial institutions from time to time party thereto as Lenders, and Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, and Lender (incorporated by reference to Exhibit 10.1 to the Company’s copy of the Revolving Credit Agreement on Form8-K filed on March ~~31,~~ 28, 2016).
10.9    Revolving Credit Agreement, dated June 29, 2017, ~~with~~among the Company, as ~~Initial~~ Borrower, ~~and~~ Capital One, National Association, as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender (incorporated by reference to ~~Item 1.01~~Exhibit 10.1 to the Company’s Registration Statement on Form8-K filed on June 30, 2017).
10.10 First Amendment to Revolving Credit Agreement, dated June 29, 2018, among the Company, as Borrower, Capital One, National Association, as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender (filed herewith).
10.11 Amended and Restated Advisory Fee Waiver Agreement, dated August 7, 2018, by and between the Company and the Advisor (filed herewith).
31.1    Certification of Chief Executive Officer, Pursuant to Rule13a-14(a), as Adopted Pursuant to Section302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2    Certification of Chief Financial Officer, Pursuant to Rule13a-14(a), as Adopted Pursuant to Section302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32    Certification of Chief Executive Officer and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

~~See accompanying notes.~~

SIGNATURES

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


	Crescent Capital BDC, INC.

Date: ~~November 13, 2017~~August 10, 2018	By:	/s/ Jason A. Breaux
		Jason A. Breaux
		Chief Executive Officer

Date: ~~November 13, 2017~~August 10, 2018	By:	/s/ Mike L. Wilhelms
		Mike L. Wilhelms
		Chief Financial Officer

~~See accompanying notes.~~57


Delaware		47-3162282
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

11100 Santa Monica Blvd., Suite 2000, Los Angeles, CA		90025
(Address of Principal Executive Offices)		(Zip Code)


	INDEX	PAGE NO.
PART I.	FINANCIAL INFORMATION		2
Item 1.	Financial Statements		2
	Consolidated Statements of Assets and Liabilities as of ~~September~~June 30, ~~2017~~2018 (Unaudited) and December 31, ~~2016~~2017		2
	Consolidated Statements of Operations for the three months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016~~2017 (Unaudited), and for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016~~2017 (Unaudited)		3
	Consolidated Statements of Changes in Net Assets for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016~~2017 (Unaudited)		4
	Consolidated Statements of Cash Flows for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~September~~June 30, ~~2016~~2017 (Unaudited)		5
	Consolidated Schedule of Investments as of ~~September~~June 30, ~~2017~~2018 (Unaudited)		6
	Consolidated Schedule of Investments as of December 31, ~~2016~~2017		1213
	Notes to Consolidated Financial Statements (Unaudited)		1819
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		5153
Item 4.	Controls and Procedures		5254
PART II.	OTHER INFORMATION		5354
Item 1.	Legal Proceedings		5354
Item 1A.	Risk Factors		5354
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		5354
Item 3.	Defaults Upon Senior Securities		5355
Item 4.	[Reserved]		5355
Item 5.	Other Information		5355
Item 6.	Exhibits		5455


	As of September 30, 2017 (Unaudited)			As of December 31, 2016			As of June 30, 2018 (Unaudited)			As of December 31, 2017
Assets
Investments,non-controlled andnon-affiliated, at fair value (cost of $297,299,251 and $216,239,598, respectively)	$	301,984,476		$	217,920,952
Investments,non-controlled andnon-affiliated, at fair value (cost of $397,019,243 and $317,215,906, respectively)							$	397,254,529		$	319,126,672
Cash and cash equivalents		7,390,160			4,990,157			8,605,434			8,791,778
Cash denominated in foreign currency (cost of $378,272 and $137,495, respectively)		398,267			129,168
Cash denominated in foreign currency (cost of $603,816 and $452,924, respectively)								606,257			479,134
Receivable for investments sold		1,324			993,726			6,875			11,957
Interest receivable		1,156,614			1,478,221			1,431,394			1,333,277
Prepaid expenses and other assets		113,935			52,753			179,298			74,357

Total assets	$	311,044,776		$	225,564,977		$	408,083,787		$	329,817,175


Liabilities
Debt (net of deferred financing costs of $1,055,442 and $979,874, respectively)	$	137,887,574		$	93,670,635
Debt (net of deferred financing costs of $583,861 and $856,042, respectively)							$	190,679,508		$	150,847,928
Payable for investments purchased		1,995,000			—			4,068,936			—
Distributions payable		2,470,579			1,750,000			3,876,873			2,707,232
Management fees payable - affiliate		710,175			521,866			795,245			734,504
Income incentive fee payable - affiliate		504,005			461,537			—			504,295
Due to Advisor - affiliate		38,924			27,247			77,848			38,924
Due to Administrator - affiliate		146,754			154,403			246,661			232,779
Professional fees payable		300,165			145,854			307,876			289,899
Directors’ fees payable		52,188			48,375			61,563			57,063
Interest and other debt financing costs payable		914,029			449,812			1,275,864			1,018,332
Deferred tax liability								211,649			217,149
Accrued expenses and other liabilities		381,803			279,220			351,314			369,081
Deferred tax liability		380,145			—

Total liabilities	$	145,781,341		$	97,508,949		$	201,953,337		$	157,017,186


Commitments and Contingencies (Note 7)

Net Assets
Preferred stock, par value $0.001 per share (10,000 shares authorized, zero outstanding, respectively)	$	—		$	—		$	—		$	—
Common stock, par value $0.001 per share (200,000,000 shares authorized, 8,102,916 and 6,376,850 shares issued and outstanding, respectively)		8,103			6,377
Common stock, par value $0.001 per share (200,000,000 shares authorized, 10,341,086 and 8,597,116 shares issued and outstanding, respectively)								10,341			8,597
Paid-in capital in excess of par value		160,732,904			125,750,640			205,880,161			170,755,891
Accumulated net realized loss		(463,725	)		(112,155	)		(669,294	)		(455,135	)
Accumulated undistributed (distributions in excess of) net investment income		365,928			(49,518	)
Accumulated undistributed net investment income								508,368			536,613
Net unrealized appreciation (depreciation) on investments and foreign currency translation, net of deferred taxes		4,620,225			2,460,684			400,874			1,954,023

Total Net Assets	$	165,263,435		$	128,056,028		$	206,130,450		$	172,799,989

Total Liabilities and Net Assets	$	311,044,776		$	225,564,977		$	408,083,787		$	329,817,175

Net asset value per share	$	20.40		$	20.08		$	19.93		$	20.10


		For the nine months ended September 30, 2017			For the nine months ended September 30, 2016				For the six months ended June 30, 2018			For the six months ended June 30, 2017
Increase (decrease) in net assets resulting from operations:	Increase (decrease) in net assets resulting from operations:							Increase (decrease) in net assets resulting from operations:
Net investment income		$	7,049,895		$	3,792,742			$	6,884,243		$	4,193,868
Net realized loss on investments and foreign currency transactions			(351,570	)		(403,372	)			(214,159	)		(263,927	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation			2,539,686			4,025,580				(1,558,648	)		2,576,913
Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments			(380,145	)		—				5,499			—

Net increase in net assets resulting from operations			8,857,866			7,414,950				5,116,935			6,506,854


Distributions to shareholders from:
Net investment income			(6,634,449	)		(3,838,633	)			(6,912,488	)		(4,163,870	)

Total distributions to shareholders			(6,634,449	)		(3,838,633	)			(6,912,488	)		(4,163,870	)


Capital transactions:
Issuance of common stock			35,000,000			38,000,000				35,000,000			25,000,000
Issuance of common stock pursuant to dividend reinvestment plan			63,435			24,701				205,458			35,636
Equity offering costs			(79,445	)		(86,255	)			(79,444	)		(56,746	)

Net increase in net assets resulting from capital transactions			34,983,990			37,938,446				35,126,014			24,978,890

Total increase in net assets			37,207,407			41,514,763				33,330,461			27,321,874
Net assets at beginning of period			128,056,028			77,586,238				172,799,989			128,056,028

Net assets at end of period		$	165,263,435		$	119,101,001			$	206,130,450		$	155,377,902

Accumulated undistributed (distributions in excess of) net investment income		$	365,928		$	(211,317	)		$	508,368		$	(19,520	)

Changes in Shares
Common stock, at beginning of period			6,376,850			4,056,316				8,597,116			6,376,850
Issuance of common stock			1,722,924			1,965,759				1,733,792			1,234,786
Issuance of common stock pursuant to dividend reinvestment plan			3,142			1,274				10,178			1,778

Common stock, at end of period			8,102,916			6,023,349				10,341,086			7,613,414


		For the three months ended September 30,				For the nine months ended September 30,					For the three months ended June 30,				For the six months ended June 30,
		2017		2016		2017		2016			2018		2017		2018		2017
Investment Income:	Investment Income:
Interest income fromnon-controlled andnon-affiliated investments		$	6,164,352	$	3,441,450	$	15,900,326	$	8,855,097		$	7,222,142	$	5,275,103	$	13,994,039	$	9,735,974
Paid-in-kind interest			21,785		14,609		42,483		14,609			28,810		16,845		67,894		20,698

Total investment income			6,186,137		3,456,059		15,942,809		8,869,706			7,250,952		5,291,948		14,061,933		9,756,672


Expenses:	Expenses:
Interest and other debt financing costs			1,416,125		746,644		3,752,347		1,904,740			1,956,208		1,290,790		3,608,168		2,336,222
Management fees (net of waiver of $416,321, $304,000, $1,099,417 and $752,561, respectively)			710,176		432,213		1,982,695		1,179,301
Income incentive fees			504,005		63,956		1,118,540		63,956
Management fees (net of waiver of $572,946, $379,136, $1,043,788 and $683,096, respectively)												795,246		668,292		1,532,998		1,272,519
Income incentive fees (net of waiver of $560,906, $0, $560,906 and $0, respectively)												—		392,977		554,977		614,535
Directors’ fees			72,500		67,250		217,500		217,167			72,500		72,500		145,000		145,000
Professional fees			184,802		160,000		536,368		546,273			189,632		176,566		375,080		351,566
Organization expenses			16,226		19,470		56,790		61,657			32,452		16,226		56,790		40,564
Other general and administrative expenses			426,276		383,854		1,226,985		1,102,270			457,943		399,970		897,856		800,709

Total expenses			3,330,110		1,873,387		8,891,225		5,075,364			3,503,981		3,017,321		7,170,869		5,561,115

Net investment income before taxes			2,856,027		1,582,672		7,051,584		3,794,342			3,746,971		2,274,627		6,891,064		4,195,557

Income taxes			—		800		1,689		1,600
Income and excise taxes												7,600		1,600		6,821		1,689

Net investment income after taxes			2,856,027		1,581,872		7,049,895		3,792,742			3,739,371		2,273,027		6,884,243		4,193,868


Net realized and unrealized gains (losses) on investments:	Net realized and unrealized gains (losses) on investments:									Net realized and unrealized gains (losses) on investments:
Net realized gain (loss) on investments			(87,129)		929		(349,060)		(442,936)			(44,196)		(277,325)		(219,319)		(261,931)
Net realized gain (loss) on foreign currency transactions			(514)		(1,396)		(2,510)		39,564			3,026		(1,011)		5,160		(1,996)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation			(37,227)		1,623,339		2,539,686		4,025,580			(1,397,426)		976,701		(1,558,648)		2,576,913

Net realized and unrealized gains (losses) on investments			(124,870)		1,622,872		2,188,116		3,622,208			(1,438,596)		698,365		(1,772,807)		2,312,986

Benefit/(Provision) for taxes on unrealized appreciation (depreciation) on investments			(380,145)		—		(380,145)		—			(25,907)		—		5,499		—

Net increase in net assets resulting from operations		$	2,351,012	$	3,204,744	$	8,857,866	$	7,414,950		$	2,274,868	$	2,971,392	$	5,116,935	$	6,506,854


Per Common Share Data:	Per Common Share Data:
Net increase in net assets resulting from operations per share (basic and diluted):		$	0.30	$	0.58	$	1.21	$	1.52		$	0.23	$	0.40	$	0.55	$	0.92
Net investment income per share (basic and diluted):		$	0.36	$	0.29	$	0.96	$	0.78		$	0.38	$	0.31	$	0.74	$	0.59
Weighted average shares outstanding (basic and diluted):			7,848,043		5,510,123		7,349,165		4,891,535			9,902,467		7,446,092		9,357,106		7,095,592
Distributions declared per share:		$	0.30	$	0.26	$	0.87	$	0.71		$	0.37	$	0.29	$	0.70	$	0.57


	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets**			Fair Value
Investments⁽¹⁾
United States
Debt Investments
Automobiles & Components
AP Exhaust Acquisition, LLC	Senior Secured Second Lien		L + 850	⁽²⁾		9.95	%		05/2025	$	9,072,563	$	8,765,404			5.4	%	$	8,891,111
POC Investors, LLC⁽³⁾	Senior Secured First Lien		L + 550	⁽²⁾		6.80	%		10/2021		5,468,750		5,396,218			3.3			5,468,750
POC Investors, LLC^{(3) (4) (5)}	Senior Secured First Lien								10/2021		—		(9,504	)		—			—

											14,541,313		14,152,118			8.7			14,359,861

Capital Goods
Alion Science and Technology Corporation⁽³⁾	Unsecured Debt					11.00	%		08/2022		5,000,000		4,883,657			3.0			4,875,000
MB Aerospace Holdings Inc.⁽⁶⁾	Senior Secured First Lien		L + 550	⁽⁷⁾		6.75	%		12/2022		4,327,809		4,295,381			2.6			4,327,809
Midwest Industrial Rubber⁽³⁾	Senior Secured First Lien		L + 550	⁽²⁾		6.83	%		12/2021		4,069,250		4,008,309			2.5			4,069,250
Midwest Industrial Rubber^{(3) (4) (5)}	Senior Secured First Lien								12/2021		—		(6,203	)		—			—
Pro Mach Group, Inc.	Senior Secured First Lien		L + 375	⁽⁷⁾		4.99	%		10/2021		733,040		736,838			0.4			739,150

											14,130,099		13,917,982			8.5			14,011,209

Commercial & Professional Services
ADMI Corp.	Senior Secured First Lien		L + 375	⁽²⁾		5.06	%		04/2022		977,500		985,812			0.6			990,027
Advantage Sales & Marketing, Inc.	Senior Secured First Lien		L + 325	⁽⁷⁾		4.49	%		07/2021		830,730		831,018			0.5			783,657
Advantage Sales & Marketing, Inc.	Senior Secured Second Lien		L + 650	⁽⁷⁾		7.74	%		07/2022		500,000		502,543			0.3			451,145
ASP MCS Acquisition Corp.	Senior Secured First Lien		L + 475	⁽²⁾		6.06	%		05/2024		5,361,562		5,335,804			3.3			5,435,284
Brickman Group Ltd. LLC	Senior Secured Second Lien		L + 650	⁽⁷⁾		7.73	%		12/2021		234,043		234,875			0.1			235,542
DFS Intermediate Holdings, LLC^{(3) (4)}	Senior Secured First Lien		L + 525	⁽⁷⁾		6.49	%		09/2018		386,400		375,221			0.2			386,400
DFS Intermediate Holdings, LLC⁽³⁾	Senior Secured First Lien		L + 525	⁽⁷⁾		6.49	%		03/2022		7,313,250		7,179,682			4.4			7,313,250
DFS Intermediate Holdings, LLC^{(3) (4)}	Senior Secured First Lien		L + 525	⁽⁷⁾		6.49	%		03/2022		165,000		129,031			0.1			165,000
Hepaco, LLC^{(3) (4)}	Senior Secured First Lien		P + 400	⁽⁸⁾		8.25	%		08/2021		416,667		411,817			0.2			416,667
Hepaco, LLC⁽³⁾	Senior Secured First Lien		L + 500	⁽²⁾		6.26	%		08/2022		2,920,500		2,889,847			1.8			2,920,500
Hepaco, LLC^{(3) (4) (5)}	Senior Secured First Lien								08/2022		—		(14,742	)		—			—
Jordan Healthcare Inc.^{(3) (4) (5)}	Senior Secured First Lien								08/2021		—		(4,274	)		—			—
Jordan Healthcare Inc.⁽³⁾	Senior Secured First Lien		L + 600	⁽²⁾		7.33	%		07/2022		4,113,900		4,072,434			2.5			4,113,900
Jordan Healthcare Inc.^{(3) (4) (5)}	Senior Secured First Lien								07/2022		—		(13,935	)		—			—
MHS Acquisition Holdings, LLC⁽³⁾	Senior Secured Second Lien		L + 875	⁽²⁾		10.08	%		03/2026		8,101,633		7,877,275			4.9			8,101,633
MHS Acquisition Holdings, LLC^{(3) (4)}	Senior Secured Second Lien		L + 875	⁽²⁾		10.08	%		03/2026		466,576		445,147			0.3			466,576
MHS Acquisition Holdings, LLC⁽³⁾	Unsecured Debt					13.50% PIK			03/2026		527,285		517,853			0.3			510,676
MHS Acquisition Holdings, LLC⁽³⁾	Unsecured Debt					13.50	%		03/2026		140,887		138,258			0.1			136,449
NS Intermediate Holdings, LLC^{(3) (4)}	Senior Secured First Lien		P + 450	⁽⁸⁾		8.75	%		09/2021		17,500		14,007			—			17,500
NS Intermediate Holdings, LLC⁽³⁾	Senior Secured First Lien		L + 550	⁽⁷⁾		6.74	%		09/2021		2,578,881		2,541,695			1.6			2,578,881
PowerTeam Services, LLC	Senior Secured First Lien		L + 325	⁽²⁾		4.58	%		05/2020		977,961		976,597			0.6			977,961
SavATree, LLC^{(3) (4) (5)}	Senior Secured First Lien								05/2022		—		(6,536	)		—			—


	Investment Type	Spread Above Index *			Interest Rate			Maturity Date		Principal Amount, Par Value or Shares		Cost			Percentage of Net Assets **			Fair Value
Investments (1)
United States
Debt Investments
Automobiles & Components
POC Investors, LLC (2)	Senior Secured First Lien		L + 550	(3)		6.50	%		10/2021	$	83,333	$	76,042			0.1	%	$	83,333
POC Investors, LLC	Senior Secured First Lien		L + 550	(4)		6.50	%		10/2021		3,100,000		3,054,645			2.4			3,100,000

											3,183,333		3,130,687			2.5			3,183,333

Capital Goods
Alion Science and Technology Corp.	Unsecured Debt					11.00	%		08/2022		5,000,000		4,870,817			3.8			4,950,000
Brand Energy & Infrastructure Services, Inc.	Senior Secured First Lien		L + 375	(4)		4.75	%		11/2020		835,809		821,808			0.6			835,588
Doosan Infracore International, Inc. (5)	Senior Secured First Lien		L + 350	(3)		4.50	%		05/2021		598,673		601,635			0.5			608,030
MB Aerospace Holdings I, Inc. (5)	Senior Secured First Lien		L + 550	(4)		6.50	%		12/2022		4,360,845		4,324,305			3.4			4,349,943
Midwest Industrial Rubber (2)	Senior Secured First Lien								12/2021		85,000		77,680			0.1			80,818
Midwest Industrial Rubber	Senior Secured First Lien		L + 550	(3)		6.50	%		12/2021		4,100,000		4,029,260			3.2			4,059,651
Pro Mach Group, Inc.	Senior Secured First Lien		L + 375	(4)		4.75	%		10/2021		738,693		743,154			0.6			739,247
Silver II US Holdings, LLC (5)	Senior Secured First Lien		L + 300	(4)		4.00	%		12/2019		830,597		813,397			0.6			787,435
Univar Inc. (5)	Senior Secured First Lien		L + 325	(4)		4.25	%		07/2022		740,625		743,672			0.6			748,802

											17,290,242		17,025,728			13.4			17,159,514

Commercial & Professional Services
ADMI Corp.	Senior Secured First Lien		L + 425	(4)		5.25	%		04/2022		985,000		994,587			0.8			994,234
Advantage Sales & Marketing, Inc.	Senior Secured Second Lien		L + 650	(4)		7.50	%		07/2022		500,000		502,868			0.4			489,690
Advantage Sales & Marketing, Inc.	Senior Secured First Lien		L + 325	(4)		4.25	%		07/2021		837,154		837,496			0.6			841,549
Asurion, LLC	Senior Secured Second Lien		L + 750	(3)		8.50	%		03/2021		275,000		279,388			0.2			280,071
Asurion, LLC	Senior Secured First Lien		L + 400	(3)		5.00	%		08/2022		486,875		486,294			0.4			493,996
Brickman Group, Ltd. LLC	Senior Secured Second Lien		L + 650	(3)		7.50	%		12/2021		500,000		502,043			0.4			504,690
Emerald Expositions Holding, Inc.	Senior Secured First Lien		L + 375	(4)		4.75	%		06/2020		696,535		699,151			0.5			701,759
Hepaco, LLC (2)	Senior Secured First Lien								08/2021		208,333		202,513			0.2			208,333
Hepaco, LLC	Senior Secured First Lien		L + 500	(4)		6.00	%		08/2022		2,942,625		2,907,744			2.3			2,942,625
Hepaco, LLC (2)(6)	Senior Secured First Lien								08/2022		—		(17,089	)		—			—
Jordon Healthcare Inc.	Senior Secured First Lien		L + 525	(4)		6.25	%		07/2021		2,388,000		2,360,651			1.9			2,388,000
Jordon Healthcare Inc.(2)(6)	Senior Secured First Lien								08/2021		—		(18,741	)		—			—
NS Intermediate Holdings, LLC	Senior Secured First Lien		L + 550	(4)		6.50	%		09/2021		2,981,250		2,931,417			2.3			2,981,250
NS Intermediate Holdings, LLC (2)	Senior Secured First Lien								09/2021		16,199		12,047			—			16,199


Investment Type	Cost		Fair Value		Unrealized Appreciation/ (Depreciation)		Cost		Fair Value		Unrealized Appreciation/ (Depreciation)
Senior Secured First Lien	$	216,950,902	$	219,298,328	$	2,347,426	$	290,921,471	$	293,331,572	$	2,410,101
Senior Secured Second Lien		65,534,846		67,102,430		1,567,584		78,072,987		76,067,765		(2,005,222	)
Unsecured Debt		5,539,768		5,522,125		(17,643)		5,663,083		5,535,874		(127,209	)
Preferred Stock		1,891,892		1,951,500		59,608		1,891,892		2,135,768		243,876
Common Stock		7,381,843		8,110,093		728,250		20,469,810		20,183,550		(286,260	)

Total Investments	$	297,299,251	$	301,984,476	$	4,685,225	$	397,019,243	$	397,254,529	$	235,286


Industry	Fair Value September 30, 2017		Percentage of Fair Value			Fair Value December 31, 2016		Percentage of Fair Value			Fair Value June 30, 2018		Percentage of Fair Value			Fair Value December 31, 2017		Percentage of Fair Value
Automobiles & Components	$	15,287,298		5.06	%	$	3,183,333		1.46	%	$	23,458,680		5.91	%	$	18,849,183		5.91	%
Capital Goods		14,417,363		4.78			17,714,408		8.13			12,749,552		3.21			17,096,221		5.36
Commercial & Professional Services		73,127,612		24.22			36,916,967		16.94			84,900,587		21.37			70,309,935		22.03
Consumer Durables & Apparel		3,030,000		1.00			4,001,176		1.84			5,497,277		1.38			3,030,000		0.95
Consumer Services		26,521,756		8.78			22,012,237		10.10			62,654,173		15.77			32,380,725		10.15
Diversified Financials		2,962,237		0.98			2,993,211		1.37			14,231,607		3.58			3,531,247		1.11
Energy		634,963		0.21			668,962		0.31			330,803		0.08			311,446		0.10
Food & Staples Retailing		7,518,805		2.49			3,779,136		1.73			11,599,865		2.92			7,337,663		2.30
Food, Beverage & Tobacco		738,257		0.25			5,596,213		2.57			—		—			736,837		0.23
Health Care Equipment & Services		61,658,335		20.42			41,382,251		18.99			73,409,802		18.48			72,937,130		22.85
Household & Personal Products		2,227,326		0.74			2,226,800		1.02			5,273,678		1.33			2,225,440		0.70
Insurance		3,658,507		1.21			6,805,039		3.12			4,346,551		1.09			3,659,282		1.15
Materials		3,507,696		1.16			5,067,060		2.32			3,457,655		0.87			2,669,277		0.84
Media		6,198,913		2.05			3,034,798		1.39			6,397,771		1.61			5,994,211		1.88
Pharmaceuticals, Biotechnology & Life Sciences		—		—			832,638		0.38			1,596,000		0.40			426,596		0.13
Real Estate		427,304		0.14			934,687		0.43
Retailing		7,289,952		2.41			8,576,322		3.94			18,483,245		4.65			7,328,350		2.29
Software & Services		63,375,508		20.99			42,188,073		19.36			59,698,790		15.03			61,214,515		19.18
Technology Hardware & Equipment		5,296,990		1.75			2,022,011		0.93			5,190,574		1.31			4,992,098		1.56
Telecommunication Services		—		—			2,670,988		1.23
Transportation		4,105,654		1.36			4,365,491		2.00			3,977,919		1.01			4,096,516		1.28
Utilities		—		—			949,151		0.44

Total Investments	$	301,984,476		100.00	%	$	217,920,952		100.00	%	$	397,254,529		100.00	%	$	319,126,672		100.00	%


Geographic Region	Fair Value September 30, 2017		Percentage of Fair Value			Fair Value December 31, 2016		Percentage of Fair Value			Fair Value		Percentage of Fair Value			Fair Value		Percentage of Fair Value
United States	$	296,285,761		98.11	%	$	212,821,980		97.66	%	$	391,450,757		98.53	%	$	313,187,359		98.14	%
United Kingdom		3,401,725		1.13			3,076,961		1.41			3,477,993		0.88			3,556,293		1.11
France		2,296,990		0.76			2,022,011		0.93			2,325,779		0.59			2,383,020		0.75

Total Investments	$	301,984,476		100.00	%	$	217,920,952		100.00	%	$	397,254,529		100.00	%	$	319,126,672		100.00	%


Fair Value Hierarchy	Fair Value Hierarchy									Fair Value Hierarchy

		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total

Senior Secured First Lien		$	—	$	91,401,744	$	127,896,584	$	219,298,328		$	—	$	46,459,644	$	246,871,928	$	293,331,572
Senior Secured Second Lien			—		23,540,300		43,562,130		67,102,430			—		17,882,659		58,185,106		76,067,765
Unsecured Debt			—		—		5,522,125		5,522,125			—		—		5,535,874		5,535,874
Preferred Stock			—		—		1,951,500		1,951,500			—		—		2,135,768		2,135,768
Common Stock			—		—		8,110,093		8,110,093			—		—		20,183,550		20,183,550

Total Investments		$	—	$	114,942,044	$	187,042,432	$	301,984,476		$	—	$	64,342,303	$	332,912,226	$	397,254,529


Quantitative information about Level 3 Fair Value Measurements
	Fair value as of ~~September~~June 30, ~~2017~~ 2018	Valuation Techniques	Unobservable Input	Range (Weighted Average)

Senior Secured First Lien	$~~127,896,584~~196,798,395	Discounted Cash Flows	Discount Rate	~~5.7% - 9.8%~~ 6.8%-12.5%(8.1%)

	$50,073,533	Broker Quoted	Broker Quote	N/A

Senior Secured Second Lien	$54,399,450	Discounted Cash Flows	Discount Rate	7.2%-16.6%(12.0%)

	$3,785,656	Broker Quoted	Broker Quote	N/A

Unsecured Debt	$5,535,874	Discounted Cash Flows	Discount Rate	11.8%-17.0%(12.4%)

Preferred Stock	$2,135,768	Market Multiple	Comparable EBITDA Multiple	16.0x

Common Stock	$20,183,550	Market Multiple	Comparable EBITDA Multiple	7.2x-16.0x(11.9x)
Quantitative information about Level 3 Fair Value Measurements
	Fair value as of December 31, 2017	Valuation Techniques	Unobservable Input	Range (Weighted Average)

Senior Secured First Lien	$153,914,784	Discounted Cash Flows	Discount Rate	5.6%-9.5%(6.9%)


Senior Secured Second Lien	$~~43,562,130~~46,631,702	Discounted Cash Flows	Discount Rate	~~8.5% - 10.9% (9.7%~~8.0%-14.3%(11.0%)

Unsecured Debt	$~~5,522,125~~5,641,565	Discounted Cash Flows	Discount Rate	~~11.7% - 14.1% (12.0%~~11.0%-14.9%(11.4%)

Preferred Stock	$~~1,951,500~~2,011,108	Market Multiple	Comparable EBITDA Multiple	~~16.2x - 16.2x (16.2x)~~15.8x

Common Stock	$~~8,110,093~~7,923,331	Market Multiple	Comparable EBITDA Multiple	~~6.5x - 16.2x (11.2x)~~7.4x-15.8x(11.7x)


Quantitative information about Level 3 Fair Value Measurements
	Fair value as of December 31, 2016	Valuation Techniques	Unobservable Input	Range (Weighted Average)

Senior Secured First Lien	$65,399,107	Discounted Cash Flows	Discount Rate	5.7% - 9.9% (7.1%)


Senior Secured Second Lien	$21,353,680	Discounted Cash Flows	Discount Rate	9.8% - 10.5% (10.1%)

Unsecured Debt	$4,950,000	Discounted Cash Flows	Discount Rate	11.2%

Common Stock	$3,943,634	Market Multiple	Comparable EBITDA Multiple	10.5x - 13.4x (11.8x)


	September 30, 2017								June 30, 2018
	Aggregate Principal		Drawn		Amount		Carrying		Aggregate Principal		Drawn		Amount		Carrying
	Amount Committed		Amount⁽⁴⁾		Available⁽¹⁾		Value⁽²⁾		Amount Committed		Amount⁽⁴⁾		Available⁽¹⁾		Value⁽²⁾
SPV Asset Facility	$	125,000,000	$	80,928,575	$	44,071,425	$	80,928,575	$	125,000,000	$	119,328,575	$	5,671,425	$	119,328,575
Revolving Credit Facility		-		-		-		-		-		-		-		-
Revolving Credit Facility II⁽³⁾⁽⁵⁾		75,000,000		58,309,591		17,089,581		58,014,441		85,000,000		72,309,591		13,040,297		71,934,794

Total Debt	$	200,000,000	$	139,238,166	$	61,161,006	$	138,943,016	$	210,000,000	$	191,638,166	$	18,711,722	$	191,263,369


	December 31, 2016								December 31, 2017
	Aggregate Principal		Drawn		Amount		Carrying		Aggregate Principal		Drawn		Amount		Carrying
	Amount Committed		Amount⁽⁴⁾		Available⁽¹⁾		Value⁽²⁾		Amount Committed		Amount⁽⁴⁾		Available⁽¹⁾		Value⁽²⁾
SPV Asset Facility	$	75,000,000	$	47,628,575	$	27,371,425	$	47,628,575	$	125,000,000	$	86,628,575	$	38,371,425	$	86,628,575
Revolving Credit Facility⁽³⁾⁽⁵⁾		50,000,000		47,809,591		2,998,009		47,021,934
Revolving Credit Facility										-		-		-		-
Revolving Credit Facility II⁽³⁾⁽⁵⁾										75,000,000		65,309,591		9,955,454		65,075,395

Total Debt	$	125,000,000	$	95,438,166	$	30,369,434	$	94,650,509	$	200,000,000	$	151,938,166	$	48,326,879	$	151,703,970


	For the nine months ended September 30, 2017				For the six months ended June 30, 2018
Quarter Ended	Shares		Amount		Shares		Amount
September 30, 2017		488,138	$	10,000,000
June 30, 2017		490,701		10,000,000
March 31, 2017		744,085		15,000,000
June 30, 2018						991,916	$	20,000,000
March 31, 2018						741,876		15,000,000

Total Capital Drawdowns		1,722,924	$	35,000,000		1,733,792	$	35,000,000


	For the nine months ended September 30, 2016				For the six months ended June 30, 2017
Quarter Ended	Shares		Amount		Shares		Amount
September 30, 2016		613,121	$	12,000,000
June 30, 2016		728,257		14,000,000
March 31, 2016		624,382		12,000,000
June 30, 2017						490,701	$	10,000,000
March 31, 2017						744,085		15,000,000

Total Capital Drawdowns		1,965,760	$	38,000,000		1,234,786	$	25,000,000


Quarter Ended	Total Amount		Per Share Amount
June 30, 2018	$	3,876,874	$	0.37
March 31, 2018	$	3,035,614	$	0.32


Tax cost	$	397,026,436


Gross unrealized appreciation	$	7,571,978
Gross unrealized depreciation		(7,343,885	)

Net unrealized investment appreciation	$	228,093


Tax cost	$	~~297,299,251~~317,447,028


Gross unrealized appreciation	$	~~6,255,725~~5,965,295
Gross unrealized depreciation		(~~1,570,500~~4,285,767	)

Net unrealized investment appreciation	$	~~4,685,225~~


~~Tax cost~~	$	~~216,264,636~~


~~Gross unrealized appreciation~~	$	~~2,754,130~~
~~Gross unrealized depreciation~~		~~(1,097,814~~	)

~~Net unrealized investment appreciation~~	$	~~1,656,316~~1,679,528


	September 30, 2017	December 31, 2016
Weighted average total yield to maturity of debt and income producing securities (at fair value)	7.6%	7.3%
Weighted average total yield to maturity of debt and income producing securities (at cost)	8.0%	7.5%
Weighted average interest rate of debt and income producing securities	7.6%	7.2%
Percentage of debt bearing a floating rate	91.8%	90.8%
Percentage of debt bearing a fixed rate	8.2%	9.2%
Number of portfolio companies	79	95



10.8		~~Loan and Security~~Revolving Credit Agreement, dated March 28, 2016, among the Company as the Collateral Manager, Seller and Equityholder, Crescent Capital BDC Funding, LLC as the Borrower, the banks and other financial institutions from time to time party thereto as Lenders, and Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, and Lender (incorporated by reference to Exhibit 10.1 to the Company’s copy of the Revolving Credit Agreement on Form8-K filed on March ~~31,~~ 28, 2016).

10.9		Revolving Credit Agreement, dated June 29, 2017, ~~with~~among the Company, as ~~Initial~~ Borrower, ~~and~~ Capital One, National Association, as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender (incorporated by reference to ~~Item 1.01~~Exhibit 10.1 to the Company’s Registration Statement on Form8-K filed on June 30, 2017).

10.10		First Amendment to Revolving Credit Agreement, dated June 29, 2018, among the Company, as Borrower, Capital One, National Association, as Administrative Agent, Lead Arranger, Managing Agent and Committed Lender (filed herewith).

10.11		Amended and Restated Advisory Fee Waiver Agreement, dated August 7, 2018, by and between the Company and the Advisor (filed herewith).

31.1		Certification of Chief Executive Officer, Pursuant to Rule13a-14(a), as Adopted Pursuant to Section302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

31.2		Certification of Chief Financial Officer, Pursuant to Rule13a-14(a), as Adopted Pursuant to Section302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

32		Certification of Chief Executive Officer and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

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