UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

________________

FORM 10-Q



(Mark One)
þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, ~~2018~~2019
OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Commission file number: 814-00939

________________

HMS Income Fund, Inc.

(Exact Name of Registrant as Specified in its Charter)



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

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

(888) 220-6121

(Registrant’s telephone number, including area code)

Not applicable

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

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

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

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



Large accelerated filer o	Accelerated filer o	Non-accelerated filer þ	Smaller reporting company o	Emerging growth company o
		~~(Do not check if a smaller~~ ~~reporting company)~~

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

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

The issuer had ~~79,755,483~~79,071,514 shares of common stock outstanding as of May ~~14, 2018.~~13, 2019.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION



Item 1.	Condensed Consolidated Financial Statements:
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Changes in Net Assets	3
	Condensed Consolidated Statements of Cash Flows	4
	Condensed Consolidated Schedules of Investments	5
	Notes to the Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3739
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5964
Item 4.	Controls and Procedures	6065

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	6166
Item 1A.	Risk Factors	6166
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6166
Item 3.	Defaults Upon Senior Securities	6166
Item 4.	Mine Safety Disclosures	6166
Item 5.	Other Information	6266
Item 6.	Exhibits	6367

Signatures		6468

PART I — FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

HMS Income Fund, Inc.

Condensed Consolidated Balance Sheets

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


	March 31, 2018			December 31, 2017			March 31, 2019			December 31, 2018
	(Unaudited)						(Unaudited)
ASSETS
Portfolio investments at fair value:
Non-Control/Non-Affiliate investments (amortized cost: $925,303 and $948,029 as of March 31, 2018 and December 31, 2017, respectively)	$	909,632		$	922,898
Affiliate investments (amortized cost: $102,111 and $71,708 as of March 31, 2018 and December 31, 2017, respectively)	107,777			76,862
Control investments (amortized cost: $44,495 and $44,592 as of March 31, 2018 and December 31, 2017, respectively)	50,232			49,679
Total portfolio investments (amortized cost: $1,071,909 and $1,064,329 as of March 31, 2018 and December 31, 2017, respectively)	1,067,641			1,049,439
Non-Control/Non-Affiliate investments (amortized cost: $929,741 and $932,495 as of March 31, 2019 and December 31, 2018, respectively)							$	902,841		$	901,518
Affiliate investments (amortized cost: $140,763 and $143,372 as of March 31, 2019 and December 31, 2018, respectively)							151,053			149,323
Control investments (amortized cost: $42,946 and $45,821 as of March 31, 2019 and December 31, 2018, respectively)							56,234			55,727
Total portfolio investments (amortized cost: $1,113,450 and $1,121,688 as of March 31, 2019 and December 31, 2018, respectively)							1,110,128			1,106,568

Cash and cash equivalents	24,469			45,791			18,313			21,757
Interest receivable	7,722			8,638			8,256			9,292
Receivable for securities sold	28,628			4,959			809			918
Prepaid and other assets	2,199			4,072			4,318			4,038
Deferred financing costs (net of accumulated amortization of $642 and $309 as of March 31, 2018 and December 31, 2017, respectively)	5,829			6,163
Deferred financing costs (net of accumulated amortization of $1,979 and $1,642 as of March 31, 2019 and December 31, 2018, respectively)							4,527			4,857
Total assets	$	1,136,488		$	1,119,062		$	1,146,351		$	1,147,430

LIABILITIES
Accounts payable and other liabilities	$	1,507		$	1,459		$	2,192		$	2,456
Stockholder distributions payable	4,757			4,772			4,673			4,676
Base management fees payable	5,694			5,682
Base management and incentive fees payable							7,125			5,854
Due to affiliates	51			59			105			57
Directors’ fees payable	15			17			26			21
Payable for securities purchased	19,398			29,284			1,837			—
Credit facilities payable	458,000			430,000			500,000			509,000
Total liabilities	489,422			471,273			515,958			522,064

Commitments and Contingencies (Note 12)

NET ASSETS
Common stock, $.001 par value; 150,000,000 shares authorized, 79,201,065 and 79,511,731 issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	79			80
Common stock, $.001 par value; 150,000,000 shares authorized, 78,547,196 and 78,584,824 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively							79			79
Additional paid-in capital	683,119			685,593			678,219			678,627
Accumulated distributions in excess of net investment income	(31,511		)	(22,660		)
Net unrealized depreciation on investments	(4,621		)	(15,224		)
Total accumulated earnings (loss)							(47,905		)	(53,340		)
Total net assets	647,066			647,789			630,393			625,366

Total liabilities and net assets	$	1,136,488		$	1,119,062		$	1,146,351		$	1,147,430

Net asset value per share	$	8.17		$	8.15		$	8.03		$	7.96

See notes to the condensed consolidated financial statements.

HMS Income Fund, Inc.

Condensed Consolidated Statements of Operations

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

(Unaudited)


	Three Months Ended						Three Months Ended
	March 31, 2018			March 31, 2017			March 31, 2019			March 31, 2018
INVESTMENT INCOME:
From non-control/non-affiliate investments:
Interest income	$	22,909		$	22,543		$	23,499		$	20,257
Fee income	268			710			307			268
Dividend income	303			202			327			303
From affiliate investments:
Interest income	1,764			963			2,602			1,764
Fee income	49			54			37			49
Dividend income	475			426			396			475
From control investments:
Interest income	156			168			123			156
Fee income	17			21			17			17
Dividend income	695			277			1,853			695
Total interest, fee and dividend income	26,636			25,364
Total investment income							29,161			23,984
EXPENSES:
Interest expense	5,128			3,995			7,107			5,128
Base management and incentive fees	5,709			6,645			7,125			5,694
Internal administrative services expenses	804			661			758			804
Offering costs	103			390			95			103
Professional fees	268			264			316			268
Insurance	48			48			48			48
Other general and administrative	443			327			516			443
Expenses before fee and expense waivers	12,503			12,330			15,965			12,488
Waiver of incentive fees	(15		)	(1,495		)	—			—
Waiver of internal administrative services expenses	(804		)	(661		)	(758		)	(804		)
Total expenses, net of fee and expense waivers	11,684			10,174			15,207			11,684
Net investment income before taxes	14,952			15,190			13,954			12,300
Income tax expense (benefit), including excise tax	102			48
Income tax expense, including excise tax							58			102
NET INVESTMENT INCOME	14,850			15,142			13,896			12,198
NET REALIZED GAIN (LOSS) ON INVESTMENTS
Non-Control/Non-Affiliate investments	(10,809		)	2,640			(1,631		)	(8,157		)
Affiliate investments	912			—			(5,508		)	912
Control investments	—			—			—			—
Total realized gain (loss) on investments	(9,897		)	2,640
Total net realized loss on investments							(7,139		)	(7,245		)
NET REALIZED INCOME	4,953			17,782			6,757			4,953
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
Non-Control/Non-Affiliate investments	9,463			(5,569		)	4,331			9,463
Affiliate investments	492			1,060			3,626			492
Control investments	649			(7		)	4,106			649
Total net change in unrealized appreciation (depreciation) on investments	10,604			(4,516		)
Total net change in unrealized appreciation on investments							12,063			10,604
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	15,557		$	13,266		$	18,820		$	15,557
PER SHARE INFORMATION - BASIC AND DILUTED
NET INVESTMENT INCOME PER SHARE	$	0.19		$	0.20		$	0.18		$	0.15
NET REALIZED INCOME PER SHARE	$	0.06		$	0.24		$	0.09		$	0.06
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)	$	0.19		$	0.18
DISTRIBUTIONS DECLARED PER SHARE	$	0.17		$	0.17
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)							$	0.24		$	0.19
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED	79,846,665			74,853,781			78,819,746			79,846,665

See notes to the condensed consolidated financial statements.

HMS Income Fund, Inc.

Condensed Consolidated Statements of Changes in Net Assets

(dollars in thousands, except ~~number of shares)~~share and per share amounts)

(Unaudited)


	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017			Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Change in Net Assets from Operations:
Net investment income	$	14,850		$	15,142		$	13,896		$	12,198
Net realized gain (loss) on investments	(9,897		)	2,640
Net change in unrealized appreciation (depreciation) on investments	10,604			(4,516		)
Net realized loss on investments							(7,139		)	(7,245		)
Net change in unrealized appreciation on investments							12,063			10,604
Net increase in net assets resulting from operations	15,557			13,266			18,820			15,557

Change in Net Assets from Stockholders’ Distributions:
Distributions from net investment income	(13,803		)	(10,282		)
Distributions from net realized gain on investments	—			(2,640		)
Net decrease in net assets resulting from stockholders’ distributions	(13,803		)	(12,922		)	(13,606		)	(13,803		)

Change in Net Assets from Capital Share Transactions:
Issuance of common stock, net of issuance costs	—			17,569
Reinvestment of stockholder distributions	6,929			6,618			6,366			6,929
Repurchase of common stock	(9,406		)	(5,055		)	(6,553		)	(9,406		)
Net increase (decrease) in net assets resulting from capital share transactions	(2,477		)	19,132
Net decrease in net assets resulting from capital share transactions							(187		)	(2,477		)

Total Increase (Decrease) in Net Assets	(723		)	19,476			5,027			(723		)
Net Assets at beginning of the period	647,789			597,833			625,366			647,789
Net Assets at end of the period	$	647,066		$	617,309		$	630,393		$	647,066

NAV per share at end of the period	$	8.17		$	8.16		$	8.03		$	8.17
Distributions declared per share							$	0.17		$	0.17

Common shares outstanding, beginning of the period	79,511,731			73,382,971			78,584,824			79,511,731
Issuance of common shares	—			2,103,257
Issuance of common shares pursuant to distribution reinvestment plan	836,401			796,659			782,543			836,401
Repurchase of common shares	(1,147,067		)	(614,180		)	(820,171		)	(1,147,067		)
Common shares outstanding, end of the period	79,201,065			75,668,707			78,547,196			79,201,065

See notes to the condensed consolidated financial statements.

HMS Income Fund, Inc.

Condensed Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)


	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017			Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	15,557		$	13,266		$	18,820		$	15,557
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Adjustments to reconcile net increase in net assets resulting from operations to net cash generated from (used in) operating activities:
Principal repayments received and proceeds from sales of investments in portfolio companies	133,039			137,798			39,036			133,039
Investments in portfolio companies	(181,813		)	(110,916		)	(34,152		)	(181,813		)
Net change in unrealized (appreciation) depreciation on portfolio investments	(10,604		)	4,516
Net realized (gain) loss on sale of portfolio investments	9,897			(2,640		)
Net change in unrealized (appreciation) on portfolio investments							(12,063		)	(10,604		)
Net realized loss on sale of portfolio investments							7,139			7,245
Amortization of deferred financing costs	334			387			337			334
Amortization of deferred offering costs	103			390			95			103
Accretion of unearned income	(4,819		)	(4,091		)	(1,562		)	(2,167		)
Net payment-in-kind interest accrual	(212		)	(320		)	(1,169		)	(212		)
Changes in other assets and liabilities:
Interest receivable	916			(289		)	1,036			916
Prepaid and other assets	4,647			610			518			4,647
Base management fees payable	12			95
Base management and incentive fees payable							1,271			12
Due to affiliates	(8		)	15			48			(8		)
Directors’ fees payable	(2		)	3			5			(2		)
Accounts payable and other liabilities	29			277			88			29
Payable for unsettled trades	—			126
Net cash generated from (used in) operating activities	(32,924		)	39,227			19,447			(32,924		)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	—			19,187
Redemption of common stock	(9,406		)	(5,055		)	(6,553		)	(9,406		)
Payment of selling commissions and dealer manager fees	—			(1,555		)
Payment of offering costs	(103		)	(375		)	(95		)	(103		)
Payment of stockholder distributions	(6,889		)	(6,158		)	(7,243		)	(6,889		)
Repayments on credit facilities payable	(100,000		)	(165,000		)	(31,000		)	(100,000		)
Proceeds from credit facilities payable	128,000			138,000			22,000			128,000
Payment of deferred financing costs	—			(556		)
Net cash generated from (used in) financing activities	11,602			(21,512		)	(22,891		)	11,602

Net increase (decrease) in cash and cash equivalents	(21,322		)	17,715
Net decrease in cash and cash equivalents							(3,444		)	(21,322		)

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

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$	24,469		$	41,434		$	18,313		$	24,469

See notes to the condensed consolidated financial statements.


HMS Income Fund, Inc. Consolidated Schedule of Investments	HMS Income Fund, Inc. Consolidated Schedule of Investments									HMS Income Fund, Inc. Consolidated Schedule of Investments
As of March 31, 2018
As of March 31, 2019										As of March 31, 2019
(dollars in thousands)
Portfolio Company (1) (3)	Business Description	Type of Investment (2) (3)	Index Rate (22)	Principal (7)		Cost (7)		Fair Value (26)		Business Description	Type of Investment (2) (3)	Index Rate (22)	Principal (7)		Cost (7)		Fair Value (26)

Control Investments (6)
Copper Trail Energy Fund I, LP (9)(15)(16)	Investment Partnership	LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.1%)	—	$	—	$	2,500	$	2,500
GRT Rubber Technologies, LLC (8) (10) (13)	Manufacturer of Engineered Rubber Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.66%, Secured Debt (Maturity - December 19, 2019)	1 month LIBOR	5,612		5,560		5,612
CTMH, LP (9) (15)										Investment Partnership	LP Interests (CTMH, LP) (Fully diluted 38.8%)	—	$	—	$	872	$	872
GRT Rubber Technologies, LLC (10) (13)										Manufacturer of Engineered Rubber Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.49%, Secured Debt (Maturity - December 31, 2023) (8)	1 month LIBOR	5,663		5,639		5,663
		Member Units (2,896 units)	—	—		6,435		11,535			Member Units (2,896 units) (16)	—	—		6,435		20,337
						11,995		17,147							12,074		26,000
HMS-ORIX SLF LLC (9) (15)	Investment Partnership	Membership Interests (Fully diluted 60.00%) (16)	—	—		30,000		30,585		Investment Partnership	Membership Interests (Fully diluted 60.00%) (16)	—	—		30,000		29,362

Subtotal Control Investments (6) (5% of total investments at fair value)	Subtotal Control Investments (6) (5% of total investments at fair value)					$	44,495	$	50,232	Subtotal Control Investments (6) (5% of total investments at fair value)					$	42,946	$	56,234
Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)	Provider of Rent-to-Own Financing Solutions and Services	Member Units (46 units) (16)	—	$	—	$	300	$	940	Provider of Rent-to-Own Financing Solutions and Services	Member Units (46 units) (16)	—	$	—	$	300	$	1,092
		Warrants (10 equivalent units, Expiration - November 7, 2024)	—	—		65		225			Warrants (10 equivalent units, Expiration - November 7, 2024)	—	—		65		260
						365		1,165							365		1,352
Brewer Crane Holdings, LLC (8) (10) (13)	Provider of Crane Rental and Operating Services	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.66%, Secured Debt (Maturity - January 9, 2023)	1 month LIBOR	2,478		2,433		2,433
Brewer Crane Holdings, LLC (10) (13)										Provider of Crane Rental and Operating Services	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.10%, Secured Debt (Maturity - January 9, 2023) (8)	1 month LIBOR	2,356		2,319		2,319
		Preferred Member Units (737 units)	—	—		1,070		1,070			Preferred Member Units (737 units) (16)	—	—		1,070		1,070
						3,503		3,503							3,389		3,389
Chamberlin HoldCo, LLC (8) (10) (13)	Roofing and waterproofing specialty subcontractor	LIBOR plus 10.00% (Floor 1.00%), Current Coupon 12.13%, (Maturity - February 23, 2023)	3 month LIBOR	5,400		5,267		5,267
Centre Technologies Holdings, LLC (10) (13)										Provider of IT Hardware Services and Software Solutions	LIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.50%, Secured Debt (Maturity - January 4, 2024) (8)	1 month LIBOR	3,060		2,995		3,001
											Preferred Member Units (3,174 units)	—	—		1,460		1,460
															4,455		4,461
Chamberlin HoldCo, LLC (10) (13)										Roofing and waterproofing specialty subcontractor	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.75%, Secured Debt (Maturity - February 23, 2023) (8)	1 month LIBOR	5,051		4,938		4,938
											Member Units (1,087 units) (16)	—	—		2,860		5,280
		Member Units (1,087 units)	—	—		2,860		2,860			Member Units (Chamberlin Langfield Real Estate, LLC) (1 unit)	—	—		183		183
						8,127		8,127							7,981		10,401
Charlotte Russe, Inc.	Fast-Fashion Retailer to Young Women	8.50% Secured Debt (Maturity - February 2, 2023)	None	6,285		6,285		6,222		Fast-Fashion Retailer to Young Women	Common Stock (14,973 shares)	—	—		2,470		—
		Common Stock (14,973 shares)	—	—		2,470		2,470
						8,755		8,692
Charps, LLC (10) (13)	Pipeline Maintenance and Construction	12.00% Secured Debt (Maturity - January 31, 2022)	None	4,200		4,111		4,113		Pipeline Maintenance and Construction	11.50% Secured Debt (Maturity - February 3, 2022)	None	2,808		2,763		2,808
		Preferred Member Units (400 units)	—	—		100		297			Preferred Member Units (400 units) (16)	—	—		100		938
						4,211		4,410							2,863		3,746
Clad-Rex Steel, LLC (10) (13)	Specialty Manufacturer of Vinyl-Clad Metal	LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.16%, Secured Debt (Maturity - December 20, 2021) (8)	1 month LIBOR	3,320		3,266		3,320		Specialty Manufacturer of Vinyl-Clad Metal	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.49%, Secured Debt (Maturity - December 20, 2021) (8)	1 month LIBOR	3,020		2,982		3,020
		Member Units (179 units) (16)	—	—		1,820		2,444			Member Units (179 units) (16)	—	—		1,820		2,653
											10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)	None	289		286		286
											Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)	—	—		53		88
															5,141		6,047
Copper Trail Energy Fund I, LP (9) (15)										Investment Partnership	LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 12.4%)	—	—		3,306		3,930
Digital Products Holdings LLC (10) (13)										Designer and Distributor of Consumer Electronics	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.50%, Secured Debt (Maturity - March 31, 2023) (8)	1 month LIBOR	6,352		6,243		6,243
		10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)	None	295		292		292			Preferred Member Units (863 units) (16)	—	—		2,116		1,991
		Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)	—	—		53		70							8,359		8,234
						5,431		6,126
Direct Marketing Solutions, Inc. (10) (13)	Provider of Omni-Channel Direct Marketing Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.75%, (Maturity - February 13, 2023) (8)	3 month LIBOR	4,680		4,555		4,565		Provider of Omni-Channel Direct Marketing Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity - February 13, 2023) (8)	1 month LIBOR	$	4,445	$	4,342	$	4,350
		Preferred Stock (2,100 shares)	—	—		2,100		2,100			Preferred Stock (2,100 shares)	—	—		2,100		4,038
						6,655		6,665							6,442		8,388
Freeport Financial Funds (9) (15)	Investment Partnership	LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 5.60%) (16)	—	—		8,558		8,506		Investment Partnership	LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.0%) (16)	—	—		9,756		9,581
Gamber-Johnson Holdings, LLC (10) (13)	Manufacturer of Ruggedized Computer Mounting Systems	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.66%, Secured Debt (Maturity - June 24, 2021) (8)	1 month LIBOR	5,727		5,635		5,727		Manufacturer of Ruggedized Computer Mounting Systems	LIBOR Plus 7.50% (Floor 2.00%), Current Coupon 9.99%, Secured Debt (Maturity - June 24, 2021) (8)	1 month LIBOR	5,155		5,089		5,155
		Member Units (2,155 units) (16)	—	—		3,711		6,633			Member Units (2,155 units) (16)	—	—		3,711		11,365
						9,346		12,360							8,800		16,520


Guerdon Modular Holdings, Inc. (10) (13)	Multi-Family and Commercial Modular Construction Company	13.00% Secured Debt (Maturity - March 1, 2019)	None	$	2,777	$	2,747	$	2,760	Multi-Family and Commercial Modular Construction Company	13.00% Secured Debt (Maturity - March 31, 2019)	None	3,147		3,129		3,005
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.19%, Secured Debt (Maturity - March 1, 2019)	3 month LIBOR	70		68		70
		Common Stock (53,008 shares)	—	—		746		—			Common Stock (53,008 shares)	—	—		746		—
		Class B Preferred Stock (101,250 shares)	—	—		285		—			Class B Preferred Stock (101,250 shares)	—	—		285		—
						3,846		2,830							4,160		3,005
Gulf Publishing Holdings, LLC (10) (13)	Energy Focused Media and Publishing	12.50% Secured Debt (Maturity - April 29, 2021)	None	3,175		3,129		3,129		Energy Industry Focused Media and Publishing	12.50% Secured Debt (Maturity - April 29, 2021)	None	3,134		3,102		3,102
		Member Units (781 shares)	—	—		920		1,210			LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.99%, Secured Debt (Maturity - September 30, 2020) (8)	1 month LIBOR	20		20		20
						4,049		4,339			Member Units (920 units)	—	—		920		1,082
Harris Preston Fund Investments (15) (16)	Investment Partnership	LP Interests (HPEP 3, LP) (Fully diluted 9.60%) (9)	—	—		1,033		1,033
															4,042		4,204
Harris Preston Fund Investments (9) (15) (16)										Investment Partnership	LP Interests (HPEP 3, LP) (Fully diluted 8.2%)	—	—		1,971		1,971
		LP Interests (2717 MH, LP) (Fully diluted 7.00%)	—	—		536		536			LP Interests (2717 MH, LP) (Fully diluted 49.3%)	—	—		2,235		2,328
						1,569		1,569							4,206		4,299
Hawk Ridge Systems, LLC (9) (10) (13)	Value-Added Reseller of Engineering Design and Manufacturing Solutions	10.50% Secured Debt (Maturity - December 2, 2021)	None	3,575		3,516		3,575		Value-Added Reseller of Engineering Design and Manufacturing Solutions	10.00% Secured Debt (Maturity - December 2, 2021)	None	3,350		3,309		3,350
		Preferred Member Units (56 units) (16)	—	—		713		1,555			Preferred Member Units (56 units) (16)	—	—		713		1,815
		Preferred Member Units (HRS Services, ULC) (56 units) (16)	—	—		38		83			Preferred Member Units (HRS Services, ULC) (56 units) (16)	—	—		38		95
						4,267		5,213							4,060		5,260
HW Temps LLC (8) (10) (13)	Temporary Staffing Solutions	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.66%, Secured Debt (Maturity - July 2, 2020)	1 month LIBOR	2,493		2,458		2,458
KMC Investor, LLC (10) (13)										Precision Metal Parts Manufacturing	11.50% Secured Debt (Maturity - October 31, 2023) (8)	None	7,000		6,796		6,803
											9.00% Secured Debt (Maturity October 31, 2048)	None	1,000		990		990
											Member Units (145 units)	—	—		248		248
		Preferred Member Units (800 units) (16)	—	—		986		985			Member Units (KMC RE Investor, LLC) (200 units) (16)	—	—		3,060		3,060
						3,444		3,443							11,094		11,101
Market Force Information, Inc. (10) (13)	Provider of Customer Experience Management Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.01%, Secured Debt (Maturity - July 28, 2022) (8)	3 month LIBOR	5,720		5,620		5,620		Provider of Customer Experience Management Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.63%, Secured Debt (Maturity - July 28, 2022) (8)	3 month LIBOR	5,700		5,622		5,622
		Member Units (170,000 units)	—	—		3,675		3,675			LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.63%, Secured Debt (Maturity - July 28, 2022) (8)	3 month LIBOR	140		140		140
						9,295		9,295			Member Units (170,000 units)	—	—		3,675		2,797
															9,437		8,559
M.H. Corbin Holding LLC (10) (13)	Manufacturer and Distributor of Traffic Safety Products	10.00% Secured Debt (Maturity - August 31, 2020)	None	3,106		3,057		3,057		Manufacturer and Distributor of Traffic Safety Products	5.00% Current / 5.00% PIK Secured Debt (Maturity - March 15, 2022)	None	2,135		2,107		2,135
											Preferred Member Units (16,500 units)	—	—		1,100		1,192
											Common Units (1,000 units)	—	—		1,500		5
		Preferred Member Units (1,000 units)	—	—		1,500		1,500							4,707		3,332
						4,557		4,557
Mystic Logistics Holdings, LLC (10) (13)	Logistics and Distribution Services Provider for Large Volume Mailers	12.00% Secured Debt (Maturity - August 15, 2019)	None	1,890		1,866		1,868		Logistics and Distribution Services Provider for Large Volume Mailers	12.00% Secured Debt (Maturity - August 15, 2019)	None	$	1,877	$	1,868	$	1,872
		Common Stock (1,468 shares) (16)	—	—		680		1,512			Common Stock (1,468 shares)	—	—		680		178
						2,546		3,380							2,548		2,050
NexRev, LLC (10) (13)	Provider of Energy Efficiency Products & Services	11.00% Secured Debt (Maturity - February 28, 2023)	None	4,360		4,264		4,274		Provider of Energy Efficiency Products & Services	11.00% Secured Debt (Maturity - February 28, 2023)	None	4,359		4,280		4,288
		Preferred Member Units (21,600,000 units)	—	—		1,720		1,720			Preferred Member Units (21,600,000 units)	—	—		1,720		1,720
						5,984		5,994							6,000		6,008
NuStep, LLC (10) (13)	Designer, Manufacturer and Distributor of Fitness Equipment	12.00% Secured Debt (Maturity - January 31, 2022)	None	5,150		5,053		5,054		Designer, Manufacturer and Distributor of Fitness Equipment	12.00% Secured Debt (Maturity - January 31, 2022)	None	5,150		5,078		5,079
		Preferred Member Units (102 units)	—	—		2,550		2,549			Preferred Member Units (102 units)	—	—		2,550		2,550
						7,603		7,603							7,628		7,629
SI East, LLC (10) (13)										Rigid Industrial Packaging Manufacturing	10.25% Secured Debt (Maturity - August 31, 2023)	None	11,750		11,579		11,582
											Preferred Member Units (52 units)	—	—		2,000		2,000
Subtotal Affiliate Investments (4) (10% of total investments at fair value)						$	102,111	$	107,777
															13,579		13,582
Tedder Acquisition, LLC (10) (13)										Manufacturer of Firearm Holsters and Accessories	12.00% Secured Debt (Maturity - August 31, 2023)	None	4,100		3,988		3,988
											12.00% Secured Debt (Maturity - August 31, 2020)	None	120		118		118
											Preferred Member Units (110 units)	—	—		1,869		1,869
															5,975		5,975

Subtotal Affiliate Investments (4) (13% of total investments at fair value)										Subtotal Affiliate Investments (4) (13% of total investments at fair value)					$	140,763	$	151,053

Non-Control/Non-Affiliate Investments (5)
AAC Holdings Inc. (8)	Substance Abuse Treatment Service Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity - June 30, 2023)	3 month LIBOR	$	14,782	$	14,488	$	15,041	Substance Abuse Treatment Service Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 11.49%, Secured Debt (Maturity - June 30, 2023)	3 month LIBOR	$	14,405	$	14,017	$	13,325
											LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.49%, Secured Debt (Maturity - March 31, 2020) (12)	3 month LIBOR	1,855		1,683		1,837
															15,700		15,162
Adams Publishing Group, LLC (8) (11)	Local Newspaper Operator	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - November 3, 2020)	3 month LIBOR	9,894		9,702		9,894		Local Newspaper Operator	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 10.30%, Secured Debt (Maturity - July 3, 2023)	3 month LIBOR	7,718		7,567		7,577
											PRIME Plus 4.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - July 3, 2023)	PRIME	5,000		4,915		4,915
															12,482		12,492
ADS Tactical, Inc. (8) (11)	Value-Added Logistics and Supply Chain Solutions Provider to the Defense Industry	LIBOR Plus 7.50% (Floor 0.75%), Current Coupon 9.38%, Secured Debt (Maturity - December 31, 2022)	1 month LIBOR	$	12,948	$	12,651	$	12,778	Value-Added Logistics and Supply Chain Solutions Provider to the Defense Industry	LIBOR Plus 6.25% (Floor 0.75%), Current Coupon 8.75%, Secured Debt (Maturity - July 26, 2023)	1 month LIBOR	16,374		16,296		16,374
Aethon United BR, LP (8) (11)	Oil & Gas Exploration & Production	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.46%, Secured Debt (Maturity - September 8, 2023) (14)	1 month LIBOR	3,438		3,390		3,390		Oil & Gas Exploration & Production	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.24%, Secured Debt (Maturity - September 8, 2023) (14)	1 month LIBOR	4,063		4,013		4,063
Ahead, LLC (8) (11)	IT Infrastructure Value Added Reseller	LIBOR Plus 6.50%, Current Coupon 8.81%, Secured Debt (Maturity - November 2, 2020)	3 month LIBOR	5,623		5,523		5,658
Allen Media, LLC (8)										Operator of Cable Television Networks	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.14%, Secured Debt (Maturity - August 30, 2023)	3 month LIBOR	16,928		16,480		16,442
Allflex Holdings III Inc. (8)	Manufacturer of Livestock Identification Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity - July 19, 2021) (14)	3 month LIBOR	13,964		14,054		14,055		Manufacturer of Livestock Identification Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.49%, Secured Debt (Maturity - July 19, 2021) (14)	1 month LIBOR	13,232		13,321		13,232
American Nuts, LLC (8) (11)										Roaster, Mixer and Packager of Bulk Nuts and Seeds	LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 12.30%, Secured Debt (Maturity - April 10, 2023)	3 month LIBOR	12,291		12,056		11,931
American Scaffold Holdings, Inc. (8) (11)	Marine Scaffolding Service Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.80%, Secured Debt (Maturity - March 31, 2022)	3 month LIBOR	6,938		6,859		6,903		Marine Scaffolding Service Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.10%, Secured Debt (Maturity - March 31, 2022)	3 month LIBOR	6,563		6,504		6,530
American Teleconferencing Services, Ltd. (8)	Provider of Audio Conferencing and Video Collaboration Solutions	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.29%, Secured Debt (Maturity - December 8, 2021)	2 month LIBOR	15,223		14,384		15,219		Provider of Audio Conferencing and Video Collaboration Solutions	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.24%, Secured Debt (Maturity - December 8, 2021)	2 month LIBOR	14,374		13,778		9,433

Apex Linen Service, Inc. (10) (13)	Industrial Launderers	16.00% Secured Debt (Maturity - October 30, 2022)	None	3,604		3,553		3,553		Industrial Launderers	16.00% Secured Debt (Maturity - October 30, 2022)	None	$	3,604	$	3,562	$	3,562
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.66%, Secured Debt (Maturity - October 30, 2022) (8)	1 month LIBOR	600		600		600			LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.49%, Secured Debt (Maturity - October 30, 2022) (8)	1 month LIBOR	600		600		600
						4,153		4,153							4,162		4,162
APTIM Corp										Engineering, Construction and Procurement	7.75% Secured Debt (Maturity - June 15, 2025)	None	6,952		6,185		5,370
Arcus Hunting, LLC (8) (11)	Manufacturer of Bowhunting and Archery Products and Accessories	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity - November 13, 2019)	1 month LIBOR	7,087		7,020		7,083		Manufacturer of Bowhunting and Archery Products and Accessories	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.80%, Secured Debt (Maturity - November 13, 2019)	1 month LIBOR	6,764		6,741		6,764
Arise Holdings, Inc. (11)	Tech-enabled business process outsourcing	Preferred Stock (1,000,000 shares)	—	—		1,000		1,000		Tech-enabled business process outsourcing	Preferred Stock (1,000,000 shares)	—	—		1,000		1,704
ASC Ortho Management Company, LLC (11)										Provider of Orthopedic Services	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.30%, Secured Debt (Maturity - August 31, 2023) (8)	3 month LIBOR	4,631		4,537		4,485
											13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)	None	1,625		1,586		1,589
															6,123		6,074
ATI Investment Sub, Inc. (8)	Manufacturer of Solar Tracking Systems	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.13%, Secured Debt (Maturity - June 22, 2021)	1 month LIBOR	7,114		6,980		7,106		Manufacturer of Solar Tracking Systems	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity - June 22, 2021)	1 month LIBOR	3,634		3,572		3,383
ATX Networks Corp. (8) (9)	Provider of Radio Frequency Management Equipment	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.31%, Current Coupon plus PIK 8.31%, Secured Debt (Maturity - June 11, 2021)	3 month LIBOR	14,324		14,120		13,321		Provider of Radio Frequency Management Equipment	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.60%, Secured Debt (Maturity - June 11, 2021)	3 month LIBOR	13,945		13,804		13,248
BarFly Ventures, LLC (11)	Casual Restaurant Group	12.00% Secured Debt (Maturity - August 31, 2020)	None	2,905		2,865		2,905		Casual Restaurant Group	12.00% Secured Debt (Maturity - August 31, 2020)	None	3,395		3,365		3,342
		Warrants (.410 equivalent units, Expiration - August 31, 2025)	—	—		158		175			Warrants (.410 equivalent units, Expiration - August 31, 2025)	—	—		158		137
		Options (.731 equivalent units)	—	—		133		309			Options (.99 equivalent units)	—	—		202		313
						3,156		3,389							3,725		3,792
BBB Tank Services, LLC (10) (13)	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market	15.00% Secured Debt (Maturity - April 8, 2021)	None	1,000		988		971		Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.49%, Secured Debt (Maturity - April 8, 2021)	None	1,100		1,094		1,066
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.66%, Secured Debt (Maturity - April 9, 2018) (8)	1 month LIBOR	180		180		180			Preferred Stock (28,280 units)	—	—		28		29
		Member Units (200,000 units)	—	—		200		138			Member Units (200,000 units)	—	—		200		58
						1,368		1,289							1,322		1,153
Berry Aviation, Inc. (11)	Airline Charter Service Operator	Common Stock (138 shares)	—	—		100		368		Airline Charter Service Operator	10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)	None	4,496		4,435		4,496
											Preferred Member Units (Berry Acquisition, LLC) (1,548,387 units, 8.00% cumulative) (16)	—	—		1,548		1,640
															5,983		6,136
BigName Commerce, LLC (8) (11)	Provider of Envelopes and Complimentary Stationery Products	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.94%, Secured Debt (Maturity - May 11, 2022)	1 month LIBOR	2,472		2,446		2,446		Provider of Envelopes and Complimentary Stationery Products	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - May 11, 2022)	1 month LIBOR	2,443		2,423		2,408
Binswanger Enterprises, LLC (8) (11)	Glass Repair and Installation Service Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.31%, Secured Debt (Maturity - March 9, 2022)	3 month LIBOR	15,209		14,958		15,090		Glass Repair and Installation Service Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.62%, Secured Debt (Maturity - March 9, 2022)	3 month LIBOR	14,175		13,991		14,175
		Member Units (1,050,000 units)	—	—		1,050		1,000			Member Units (1,050,000 units)	—	—		1,050		1,230
						16,008		16,090							15,041		15,405
Bluestem Brands, Inc. (8)	Multi-Channel Retailer of General Merchandise	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.38%, Secured Debt (Maturity - November 6, 2020)	3 month LIBOR	12,803		12,649		9,026		Multi-Channel Retailer of General Merchandise	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.24%, Secured Debt (Maturity - November 6, 2020)	3 month LIBOR	11,995		11,901		8,862
Boccella Precast Products, LLC (10) (13)										Manufacturer of Precast Hollow Core Concrete	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.80%, Secured Debt (Maturity - June 30, 2022) (8)	3 month LIBOR	3,931		3,861		3,931
											Member Units (540,000 units) (16)	—	—		540		1,228
Boccella Precast Products, LLC (10) (13)	Manufacturer of Precast Hollow Core Concrete	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.69%, Secured Debt (Maturity - June 30, 2022) (8)	1 month LIBOR	$	4,146	$	4,058	$	4,136
		Member Units (540,000 units)	—	—		540		1,215							4,401		5,159
						4,598		5,351
Brightwood Capital Fund Investments (9) (15)	Investment Partnership	LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 0.52%) (16)	—	—		4,075		3,488		Investment Partnership	LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.60%) (16)	—	$	—	$	4,075	$	3,488
		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 1.58%) (16)	—	—		2,037		2,126			LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.80%) (16)	—	—		5,037		5,126
						6,112		5,614							9,112		8,614
Brundage-Bone Concrete Pumping, Inc.	Construction Services Provider	10.38% Secured Debt (Maturity - September 1, 2023) (14)	None	12,000		12,071		12,780
Buca C, LLC (10) (13)	Casual Restaurant Group	LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.94%, Secured Debt (Maturity - June 30, 2020) (8)	1 month LIBOR	13,336		13,201		13,201		Casual Restaurant Group	LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.73%, Secured Debt (Maturity - June 30, 2020) (8)	1 month LIBOR	12,670		12,595		12,595
		Preferred Member Units (4 units, 6.00% cumulative) (16)	—	—		2,702		2,823			Preferred Member Units (4 units, 6.00% cumulative) (16)	—	—		2,866		2,997
						15,903		16,024							15,461		15,592
Cadence Aerospace, LLC (8)	Aerospace Manufacturing	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.33%, Secured Debt (Maturity - November 14, 2023)	3 month LIBOR	14,962		14,820		14,820
Cadence Aerospace, LLC (8) (11)										Aerospace Manufacturing	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.10%, Secured Debt (Maturity - November 14, 2023)	3 month LIBOR	19,420		19,259		19,420
CAI Software, LLC (10) (13)	Provider of Specialized Enterprise Resource Planning Software	12.00% Secured Debt (Maturity - October 10, 2019)	None	1,021		1,007		1,021		Provider of Specialized Enterprise Resource Planning Software	12.00% Secured Debt (Maturity - December 7, 2023)	None	2,720		2,719		2,720
		Member Units (16,339 units) (16)	—	—		163		807			Member Units (16,742 units) (16)	—	—		188		679
						1,170		1,828							2,907		3,399
CapFusion, LLC (9) (10) (13) (18)	Non-Bank Lender to Small Businesses	13.00% Secured Debt (Maturity - March 24, 2021) (18)	None	1,559		1,287		358
CDHA Management, LLC (8) (11)	Dental Services	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.76%, Secured Debt (Maturity - December 5, 2021)	3 month LIBOR	5,062		4,978		5,062
Central Security Group, Inc. (8)	Security Alarm Monitoring Service Provider	LIBOR Plus 5.63% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - October 6, 2021)	1 month LIBOR	7,461		7,444		7,480
Cenveo Corporation (18)	Provider of Commercial Printing, Envelopes, Labels, Printed Office Products	6.00% Secured Debt (Maturity - August 1, 2019) (18)	None	15,000		13,706		6,750
Cenveo Corporation										Provider of Commercial Printing, Envelopes, Labels, Printed Office Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.49%, Secured Debt (Maturity - June 7, 2023) (8)	1 month LIBOR	4,995		4,636		4,645
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.79%, Secured Debt (Maturity - November 2, 2018) (8)	1 month LIBOR	4,774		4,737		4,798			Common Stock (138,889 shares)	—	—		4,163		1,979
						18,443		11,548							8,799		6,624
Clarius BIGS, LLC (11) (18)	Prints & Advertising Film Financing	15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	2,140		1,882		60		Prints & Advertising Film Financing	15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	2,128		1,870		32
		20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	773		680		22			20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	770		677		12
						2,562		82							2,547		44
Clickbooth.com, LLC (8) (11)	Provider of Digital Advertising Performance Marketing Solutions	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.19%, Secured Debt (Maturity - December 5, 2022)	1 month LIBOR	2,981		2,925		2,925		Provider of Digital Advertising Performance Marketing Solutions	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.31%, Secured Debt (Maturity - December 5, 2022)	3 month LIBOR	2,908		2,860		2,906
Construction Supply Investments, LLC (11)	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity - June 30, 2023) (8)	1 month LIBOR	6,938		6,903		6,920		Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - June 30, 2023) (8)	1 month LIBOR	14,968		14,902		14,932
		Member units (20,000 units)	—	—		3,723		3,723			Member units (42,207 units)	—	—		4,221		5,050
						10,626		10,643							19,123		19,982
CTVSH, PLLC (8) (11) (13)	Emergency Care and Specialty Service Animal Hospital	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.01%, Secured Debt (Maturity - August 3, 2022)	1 month LIBOR	2,925		2,872		2,899		Emergency Care and Specialty Service Animal Hospital	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.63%, Secured Debt (Maturity - August 3, 2022)	1 month LIBOR	2,675		2,635		2,675


Datacom, LLC (10) (13)	Technology and Telecommunications Provider	5.25% Current / 5.25% PIK, Current Coupon 10.50% Secured Debt (Maturity - May 30, 2019)	None	$	1,384	$	1,377	$	1,192
Datacom, LLC (10) (13) (18)										Technology and Telecommunications Provider	10.50% PIK Secured Debt (Maturity - May 30, 2019) (18)	None	1,384		1,377		1,082
		8.00% Secured Debt (Maturity - May 30, 2018)	None	195		195		195			8.00% Secured Debt (Maturity - May 30, 2018) (18)	None	200		200		188
		Class A Preferred Member Units (1,530 units) (16)	—	—		131		24			Class A Preferred Member Units (1,530 units)	—	—		144		—
		Class B Preferred Member Units (717 units)	—	—		670		—			Class B Preferred Member Units (717 units)	—	—		670		—
						2,373		1,411							2,391		1,270
Digital River, Inc. (8)	Provider of Outsourced e-Commerce Solutions and Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.61%, Secured Debt (Maturity - February 12, 2021)	3 month LIBOR	9,779		9,687		9,779		Provider of Outsourced e-Commerce Solutions and Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.60%, Secured Debt (Maturity - February 12, 2021)	3 month LIBOR	9,779		9,718		9,534
DTE Enterprises, LLC (11)										Industrial Powertrain Repair and Services	LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 10.00%, Secured Debt (Maturity - April 13, 2023) (8)	1 month LIBOR	11,992		11,783		11,992
											Class AA Preferred Member Units (non-voting) (16)	—	—		778		797
											Class A Preferred Member Units (776,316 units) (16)	—	—		776		1,440
															13,337		14,229
Dynamic Communities, LLC (8) (11)										Developer of Business Events and Online Community Groups	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity - July 17, 2023)	3 month LIBOR	5,530		5,430		5,383
Elite SEM, Inc. (8) (11)										Provider of Digital Marketing Agency Services	LIBOR Plus 8.44% (Floor 1.00%), Current Coupon 11.01%, Secured Debt (Maturity - February 1, 2022)	3 month LIBOR	6,875		6,757		6,857
Epic Y-Grade Services, LP (8)										NGL Transportation & Storage	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - June 13, 2024)	1 month LIBOR	$	17,500	$	17,186	$	17,106
Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft) (8) (9)	Technology-Based Performance Support Solutions	LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 10.13%, Secured Debt (Maturity - April 28, 2022) (14)	1 month LIBOR	10,901		10,528		9,756		Technology-Based Performance Support Solutions	LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 10.75%, Secured Debt (Maturity - April 28, 2022) (14)	1 month LIBOR	10,900		10,605		4,524
Extreme Reach, Inc. (8) (12)	Integrated TV and Video Advertising Platform	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity - February 7, 2020)	1 month LIBOR	14,154		14,142		14,137
Felix Investments Holdings II, LLC (8) (11)	Oil and Gas Exploration and Production	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.30%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	3,333		3,270		3,270		Oil and Gas Exploration and Production	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.20%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	5,000		4,931		4,971
Flavors Holdings, Inc. (8)	Global Provider of Flavoring and Sweetening Products and Solutions	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.05%, Secured Debt (Maturity - April 3, 2020)	3 month LIBOR	12,222		11,728		11,060		Global Provider of Flavoring and Sweetening Products and Solutions	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.35%, Secured Debt (Maturity - April 3, 2020)	3 month LIBOR	11,481		11,241		10,735
GoWireless Holdings, Inc. (8)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.38%, Secured Debt (Maturity - December 22, 2024)	3 month LIBOR	16,361		16,216		16,341		Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - December 22, 2024)	3 month LIBOR	15,533		15,408		15,241
Hojeij Branded Foods, LLC (8) (11)	Multi-Airport, Multi-Concept Restaurant Operator	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.89%, Secured Debt (Maturity - July 20, 2022)	1 month LIBOR	12,077		11,976		12,077
Good Source Solutions, Inc. (8) (11)										Specialized Food Distributor	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.60%, Secured Debt (Maturity - June 29, 2023)	3 month LIBOR	5,000		4,954		4,952
HDC/HW Intermediate Holdings, LLC (8) (11)										Managed Services and Hosting Provider	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.11%, Secured Debt (Maturity - December 21, 2023)	3 month LIBOR	1,794		1,757		1,758
Hoover Group, Inc. (8) (9) (11)	Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.15%, Secured Debt (Maturity - January 28, 2021)	3 month LIBOR	14,810		14,050		13,700		Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.90%, Secured Debt (Maturity - January 28, 2021)	3 month LIBOR	14,659		14,117		14,219
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	7,500		6,715		6,703			LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.66%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	6,050		5,695		5,679
						20,765		20,403							19,812		19,898
Houghton Mifflin Harcourt Publishers, Inc. (8) (12)	Provider of Educational Print and Digital Services	LIBOR Plus 3.00% (Floor 1.00%), Current Coupon 4.88%, Secured Debt (Maturity - May 28, 2021)	1 month LIBOR	14,975		14,085		13,721
Hunter Defense Technologies, Inc. (8) (12)	Provider of Military and Commercial Shelters and Systems	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - March 29, 2023)	3 month LIBOR	22,478		21,973		21,973
Hunter Defense Technologies, Inc. (8) (11)										Provider of Military and Commercial Shelters and Systems	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.60%, Secured Debt (Maturity - March 29, 2023)	3 month LIBOR	8,696		8,561		8,696
HW Temps LLC (10) (13)										Temporary Staffing Solutions	8.00% Secured Debt (Maturity - March 29, 2023)	None	2,740		2,673		2,408
Hydrofarm Holdings, LLC (8) (11)	Wholesaler of Horticultural Products	LIBOR Plus 7.00%, Current Coupon 8.73%, Secured Debt (Maturity - May 12, 2022)	3 month LIBOR	6,623		6,510		6,236		Wholesaler of Horticultural Products	LIBOR Plus 10.00%, Current Coupon 3.75% / 8.74% PIK, Current Coupon Plus PIK 12.49%, Secured Debt (Maturity - May 12, 2022)	1 month LIBOR	7,145		7,028		5,666
iEnergizer Limited (8) (9)	Provider of Business Outsourcing Solutions	LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.88%, Secured Debt (Maturity - May 1, 2019)	1 month LIBOR	10,079		9,893		10,092		Provider of Business Outsourcing Solutions	LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity - May 1, 2019)	1 month LIBOR	11,244		11,252		11,258
Implus Footcare, LLC (8) (11)	Provider of Footwear and Related Accessories	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity - May 31, 2021)	3 month LIBOR	14,453		14,272		14,367		Provider of Footwear and Related Accessories	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.35%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	17,106		16,969		17,106
Independent Pet Partners Intermediate Holdings, LLC (8) (11)										Omnichannel Retailer of Specialty Pet Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.80%, Secured Debt (Maturity - November 19, 2023) (14)	6 month LIBOR	10,946		10,732		10,727
											Member Units (1,191,667 units)	—	—		1,192		1,192
															11,924		11,919
Industrial Services Acquisitions, LLC (11)	Industrial Cleaning Services	6.00% Current / 7.00% PIK, Current Coupon 13.00%, Unsecured Debt (Maturity - December 17, 2022) (17)	None	10,624		10,456		10,121		Industrial Cleaning Services	6.00% Current / 7.00% PIK, Current Coupon 13.00%, Unsecured Debt (Maturity - December 17, 2022) (17)	None	11,398		11,203		11,398
		Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)	—	—		202		197			Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)	—	—		202		202
		Member Units (Industrial Services Investments, LLC) (2,100,000 units)	—	—		2,100		700			Member Units (Industrial Services Investments, LLC) (2,100,000 units)	—	—		2,100		887
						12,758		11,018							13,505		12,487
Inn of the Mountain Gods Resort and Casino	Hotel & Casino Owner & Operator	9.25% Secured Debt (Maturity - November 30, 2020)	None	10,749		10,629		9,781		Hotel & Casino Owner & Operator	9.25% Secured Debt (Maturity - November 30, 2020) (14)	None	8,179		8,179		8,098
iPayment, Inc. (8)	Provider of Merchant Acquisition	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.62%, Secured Debt (Maturity - April 11, 2023)	3 month LIBOR	11,970		11,970		12,120
IronGate Energy Services, LLC (18)	Oil and Gas Services	11.00% Secured Debt (Maturity - July 1, 2018) (18)	None	5,825		5,827		1,893
Intermedia Holdings, Inc. (8)										Unified Communications as a Service	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - July 19, 2025)	1 month LIBOR	11,543		11,435		11,571
Isagenix International, LLC (8)										Direct Marketer of Health and Wellness Products	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.35%, Secured Debt (Maturity - June 14, 2025)	3 month LIBOR	6,187		6,130		5,553
Jacent Strategic Merchandising, LLC (8) (11)										General Merchandise Distribution	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.98%, Secured Debt (Maturity -September 16, 2020)	1 month LIBOR	$	10,161	$	10,074	$	10,109
Jackmont Hospitality, Inc. (8) (11)	Franchisee of Casual Dining Restaurants	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity - May 26, 2021)	1 month LIBOR	$	8,550	$	8,529	$	8,550	Franchisee of Casual Dining Restaurants	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity - May 26, 2021)	1 month LIBOR	8,276		8,263		8,276
Jacuzzi Brands LLC (8)	Manufacturer of Bath and Spa Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - June 28, 2023)	3 month LIBOR	5,888		5,778		5,946
Joerns Healthcare, LLC (8)	Manufacturer and Distributor of Health Care Equipment & Supplies	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.98%, Secured Debt (Maturity - May 9, 2020)	3 month LIBOR	11,119		10,964		10,331		Manufacturer and Distributor of Health Care Equipment & Supplies	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.63%, Secured Debt (Maturity - May 9, 2020)	3 month LIBOR	11,119		11,034		9,340
Kellermeyer Bergensons Services, LLC (8)	Outsourced Janitorial Services to Retail/Grocery Customers	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.27%, Secured Debt (Maturity - April 29, 2022) (14)	3 month LIBOR	14,700		14,622		14,921		Outsourced Janitorial Services to Retail/Grocery Customers	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.25%, Secured Debt (Maturity - April 29, 2022) (14)	3 month LIBOR	14,700		14,638		14,829
Keypoint Government Solutions, Inc. (8) (11)	Provider of Pre-Employment Screening Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.73%, Secured Debt (Maturity - April 18, 2024)	3 month LIBOR	11,875		11,770		11,875
LaMi Products, LLC (8) (11)	General Merchandise Distribution	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.53%, Secured Debt (Maturity -September 16, 2020)	3 month LIBOR	10,981		10,871		10,956
Knight Energy Services LLC (11)										Oil and Gas Equipment and Services	8.50% Secured Debt (Maturity - February 9, 2024)	None	776		776		776
											Class A-2 Shares (25,692 units)	—	—		1,843		1,843
															2,619		2,619
Larchmont Resources, LLC	Oil & Gas Exploration & Production	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.53%, Secured Debt (Maturity - August 7, 2020) (8)	3 month LIBOR	4,226		4,226		4,184		Oil & Gas Exploration & Production	LIBOR Plus 9.00% (Floor 1.00%) PIK, 11.61% PIK Secured Debt (Maturity - August 7, 2020) (8)	3 month LIBOR	3,898		3,898		3,800
		Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)	—	—		601		1,562			Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)	—	—		601		1,201
						4,827		5,746							4,499		5,001
LJ Host Merger Sub, Inc. (8)	Managed Services and Hosting Provider	LIBOR Plus 5.75% (Floor 1.25%), Current Coupon 7.63%, Secured Debt (Maturity - December 13, 2019)	1 month LIBOR	17,197		16,801		16,648
Laredo Energy VI, LP (8) (11)										Oil and Gas Exploration and Production	LIBOR Plus 10.50% (Floor 2.00%), Current Coupon 13.36%, Secured Debt (Maturity - November 19, 2021)	3 month LIBOR	8,532		8,289		8,289
Logix Acquisition Company, LLC (8) (11)	Competitive Local Exchange Carrier	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.60%, Secured Debt (Maturity - December 22, 2024) (23)	1 month LIBOR	9,704		9,610		9,753		Competitive Local Exchange Carrier	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - December 22, 2024) (23)	1 month LIBOR	9,603		9,520		9,675
LSF9 Atlantis Holdings, LLC (8)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.69%, Secured Debt (Maturity - May 1, 2023)	1 month LIBOR	13,738		13,639		13,709		Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.48%, Secured Debt (Maturity - May 1, 2023)	1 month LIBOR	13,388		13,306		12,492
Lulu’s Fashion Lounge, LLC (8)(11)	Fast Fashion E-Commerce Retailer	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.88%, Secured Debt (Maturity - August 28, 2022)	1 month LIBOR	6,563		6,380		6,759		Fast Fashion E-Commerce Retailer	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - August 28, 2022)	1 month LIBOR	6,051		5,911		5,870
Meisler Operating, LLC (10) (13)	Provider of Short Term Trailer and Container Rental	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.20%, Secured Debt (Maturity - June 7, 2022) (8)	3 month LIBOR	4,740		4,627		4,635		Provider of Short Term Trailer and Container Rental	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 10.04%, Secured Debt (Maturity - June 7, 2022) (8)	3 month LIBOR	6,060		5,939		5,945
		Member Units (Milton Meisler Holdings, LLC) (8,000 units)	—	—		1,214		1,393			Member Units (Milton Meisler Holdings, LLC) (12,139 units)	—	—		1,214		1,680
						5,841		6,028							7,153		7,625
MHVC Acquisition Corp. (8)	Provider of Differentiated Information Solutions, Systems Engineering and Analytics	LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 7.56%, Secured Debt (Maturity - April 29, 2024)	3 month LIBOR	10,421		10,375		10,551		Provider of Differentiated Information Solutions, Systems Engineering and Analytics	LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity - April 29, 2024)	1 month LIBOR	7,840		7,798		7,566
Minute Key, Inc. (10) (13)	Operator of Automated Key Duplication Kiosk	Warrants (359,352 equivalent units, Expiration - May 20, 2025)	—	—		70		293
NBG Acquisition, Inc. (8)	Wholesaler of Home Decor Products	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.95%, Secured Debt (Maturity - April 26, 2024)	1 month LIBOR	4,375		4,311		4,391
Mills Fleet Farm Group, LLC (8) (11)										Omnichannel Retailer of Work, Farm and Lifestyle Merchandise	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity - October 24, 2024)	1 month LIBOR	14,963		14,679		14,963
Mobileum, Inc. (8) (11)										Provider of Big Data Analytics to Telecom Service Providers	LIBOR Plus 10.25% (Floor 0.75%), Current Coupon 12.86%, Secured Debt (Maturity - May 1, 2022) (14)	3 month LIBOR	7,500		7,434		7,434
New Era Technology, Inc. (8) (11)										Managed Services and Hosting Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.13%, Secured Debt (Maturity - June 22, 2023)	3 month LIBOR	8,678		8,537		8,556
New Media Holdings II LLC (8) (9)	Local Newspaper Operator	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity - July 14, 2022)	1 month LIBOR	14,197		14,007		14,290		Local Newspaper Operator	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity - July 14, 2022)	1 month LIBOR	9,694		9,606		9,657
NNE Partners, LLC (8) (11)	Oil & Gas Exploration & Production	LIBOR Plus 8.00%, Current Coupon 10.02%, Secured Debt (Maturity - March 2, 2022)	3 month LIBOR	15,458		15,332		15,326		Oil & Gas Exploration & Production	LIBOR Plus 8.00%, (Floor 0.00%) Current Coupon 10.62%, Secured Debt (Maturity - March 2, 2022)	3 month LIBOR	20,417		20,283		20,417
North American Lifting Holdings, Inc. (8)	Crane Service Provider	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.80%, Secured Debt (Maturity - November 27, 2020)	3 month LIBOR	6,294		5,698		5,954		Crane Service Provider	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 7.10%, Secured Debt (Maturity - November 27, 2020)	3 month LIBOR	6,228		5,840		5,854
Novetta Solutions, LLC (8)	Provider of Advanced Analytics Solutions for Defense Agencies	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.88%, Secured Debt (Maturity - October 17, 2022)	1 month LIBOR	12,094		11,794		11,771		Provider of Advanced Analytics Solutions for Defense Agencies	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - October 17, 2022)	1 month LIBOR	14,939		14,629		14,668
NTM Acquisition Corp. (8)	Provider of B2B Travel Information Content	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.55%, Secured Debt (Maturity - June 7, 2022)	3 month LIBOR	10,763		10,659		10,710		Provider of B2B Travel Information Content	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity - June 7, 2022)	1 month LIBOR	4,035		4,007		3,975
Paris Presents, Inc. (8)	Branded Cosmetic and Bath Accessories	LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 10.63%, Secured Debt (Maturity - December 31, 2021) (14)	1 month LIBOR	10,000		9,904		10,125
Pasha Group (8)	Diversified Logistics and Transportation Provided	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.37%, Secured Debt (Maturity - January 26, 2023)	2 month LIBOR	12,109		11,742		12,230		Diversified Logistics and Transportation Provided	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.07%, Secured Debt (Maturity - January 26, 2023)	2 month LIBOR	$	10,449	$	10,177	$	10,534
Permian Holdco 2, Inc.	Storage Tank Manufacturer	14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)	None	$	891	$	891	$	891	Storage Tank Manufacturer	14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)	None	1,025		1,025		738
		Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 units) (16)	—	—		1,997		2,524			18.00% PIK Unsecured Debt (Maturity - June 30, 2022) (17)	None	683		683		683
		Common Shares (Permian Holdco 1, Inc.) (386,255 units)	—	—		—		25			Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 shares) (16)	—	—		1,997		825
						2,888		3,440			Common Shares (Permian Holdco 1, Inc.) (386,255 shares)	—	—		—		—
Pernix Therapeutics Holdings, Inc. (11)	Pharmaceutical Royalty	12.00% Secured Debt (Maturity - August 1, 2020)	None	2,652		2,634		1,714
Pier 1 Imports, Inc. (8) (9) (12)	Decorative Home Furnishings Retailer	LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 5.95%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	7,513		7,137		7,156
PPC/Shift, LLC (8) (11)	Provider of Digital Solutions to Automotive Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.84%, Secured Debt (Maturity - December 22, 2021)	1 month LIBOR	6,781		6,668		6,781
															3,705		2,246
Pier 1 Imports, Inc. (8)										Decorative Home Furnishings Retailer	LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 6.38%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	7,435		7,173		4,015
PricewaterhouseCoopers Public Sector LLP (8) (14)										Provider of Consulting Services to Governments	LIBOR Plus 7.50%, Current Coupon 10.00%, Secured Debt (Maturity - May 1, 2026)	1 month LIBOR	13,100		13,055		12,936
Prowler Acquisition Corporation (8)	Specialty Distributor to the Energy Sector	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.34%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	12,380		11,297		12,101		Specialty Distributor to the Energy Sector	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - January 28, 2020)	1 month LIBOR	12,248		11,739		12,309
Radiology Partners, Inc. (8) (11)	Radiology Practice Providing Scan Interpretations	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.59%, Secured Debt (Maturity - December 4, 2023)	1 month LIBOR	9,731		9,585		9,749
Renaissance Learning, Inc. (8)	Technology-based K-12 Learning Solutions	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - April 11, 2022) (14)	3 month LIBOR	12,695		12,374		12,773
Resolute Industrial, LLC (8) (11)	HVAC Equipment Rental and Remanufacturing	LIBOR Plus 7.62% (Floor 1.00%), Current Coupon 9.31%, Secured Debt (Maturity - July 26, 2022) (24)	3 month LIBOR	17,088		16,701		16,785
		Common Stock (601 units)	—	—		750		750
						17,451		17,535
RGL Reservoir Operations, Inc. (9) (11)	Oil & Gas Equipment & Services	1.00% Current / 9.00% PIK Secured Debt (Maturity - December 21, 2024)	None	738		433		410
Rise Broadband (8) (11)										Fixed Wireless Broadband Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.49%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	14,850		14,722		14,850
RM Bidder, LLC (11)	Scripted and Unscripted TV and Digital Programming Provider	Common Stock (1,854 units)	—	—		31		11		Scripted and Unscripted TV and Digital Programming Provider	Common Stock (1,854 shares)	—	—		31		7
		Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)	—	—		284		—			Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)	—	—		284		—
		Series B Warrants (93,686 equivalent units, Expiration - October 20, 2025)	—	—		—		—			Series B Warrants (93,686 equivalent units, Expiration - October 20, 2025)	—	—		—		—
						315		11							315		7
Salient Partners, LP (8)	Provider of Asset Management Services	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - June 9, 2021)	1 month LIBOR	12,943		12,633		12,780
Salient Partners, LP (8) (11)										Provider of Asset Management Services	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - June 9, 2021)	1 month LIBOR	7,125		7,132		7,096
Slick Software Holdings LLC (10) (13)										Text Messaging Marketing Platform	14.00% Secured Debt (Maturity - September 13, 2023)	—	1,720		1,625		1,627
											Member units (17,500 units)	—	—		175		175
											Warrants (4,521 equivalent units, Expiration - September 13, 2028)	—	—		45		45
															1,845		1,847
Smart Modular Technologies, Inc. (8) (9) (11)	Provider of Specialty Memory Solutions	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.05%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	14,250		13,993		14,179		Provider of Specialty Memory Solutions	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.95%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	19,000		18,807		19,095
Sorenson Communications, Inc. (8)	Manufacturer of Communication Products for Hearing Impaired	LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.06%, Secured Debt (Maturity - April 30, 2020)	3 month LIBOR	2,939		2,926		2,952		Manufacturer of Communication Products for Hearing Impaired	LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.25%, Secured Debt (Maturity - April 30, 2020)	1 month LIBOR	2,908		2,901		2,879
STL Parent Corp (8)										Manufacturer and Servicer of Tank and Hopper Railcars	LIBOR Plus 7.00% (Floor 0.00%), Current Coupon 9.50%, Secured Debt (Maturity - December 5, 2022)	1 month LIBOR	11,925		11,532		11,567
Strike, LLC (8)	Pipeline Construction and Maintenance Services	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.45%, Secured Debt (Maturity - November 30, 2022)	3 month LIBOR	9,375		9,138		9,516		Pipeline Construction and Maintenance Services	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.65%, Secured Debt (Maturity - November 30, 2022)	6 month LIBOR	8,875		8,691		8,842
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.02%, Secured Debt (Maturity - May 30, 2019)	3 month LIBOR	409		394		411
						9,532		9,927
Synagro Infrastructure Company, Inc. (8) (12)	Waste Management Services	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.80%, Secured Debt (Maturity - August 22, 2020)	3 month LIBOR	8,291		7,987		7,834
TE Holdings, LLC	Oil & Gas Exploration & Production	Common Units (72,785 units)	—	—		728		91		Oil & Gas Exploration & Production	Common Units (72,785 units)	—	—		728		36
Teleguam Holdings, LLC (8)	Cable and Telecom Services Provider	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.38%, Secured Debt (Maturity - April 12, 2024) (14)	1 month LIBOR	7,750		7,606		7,808		Cable and Telecom Services Provider	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity - April 12, 2024) (14)	1 month LIBOR	7,750		7,624		7,798
TGP Holdings III LLC (8)										Outdoor Cooking & Accessories	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity - September 25, 2025) (14)	3 month LIBOR	5,000		5,000		4,800
TMC Merger Sub Corp (8)	Refractory & Maintenance Services Provider	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.19%, Secured Debt (Maturity - October 31, 2022) (25)	1 month LIBOR	19,022		18,882		19,166		Refractory & Maintenance Services Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity - October 31, 2022) (25)	1 month LIBOR	18,413		18,218		18,321
TOMS Shoes, LLC (8)	Global Designer, Distributor, and Retailer of Casual Footwear	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.48%, Secured Debt (Maturity - October 30, 2020)	3 month LIBOR	$	4,850	$	4,612	$	2,862	Global Designer, Distributor, and Retailer of Casual Footwear	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - October 30, 2020)	1 month LIBOR	4,800		4,651		3,804
Turning Point Brands, Inc. (8) (9) (11)	Marketer/Distributor of Tobacco Products	LIBOR Plus 7.00%, Current Coupon 8.70%, Secured Debt (Maturity - March 7, 2024) (14)	3 month LIBOR	8,500		8,415		8,670		Marketer/Distributor of Tobacco Products	LIBOR Plus 7.00% (Floor 0.00%), Current Coupon 9.48%, Secured Debt (Maturity - March 7, 2024) (14)	1 month LIBOR	$	8,500	$	8,427	$	8,585
TVG-I-E CMN Acquisition, LLC (8) (11)	Organic Lead Generation for Online Postsecondary Schools	LIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity - November 3, 2021)	1 month LIBOR	11,098		10,910		11,098		Organic Lead Generation for Online Postsecondary Schools	LIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - November 3, 2021)	1 month LIBOR	19,377		19,096		19,377
U.S. Telepacific Corp. (8) (12)	Provider of Communications and Managed Services	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	18,375		17,937		17,888
US Joiner Holding Company, LLC (8)	Marine Interior Design and Installation	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity - April 16, 2020)	1 month LIBOR	8,222		8,205		8,181
Valley Healthcare Group, LLC (10) (13)	Provider of Durable Medical Equipment	LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 14.16%, Secured Debt (Maturity - December 29, 2020) (8)	1 month LIBOR	2,912		2,874		2,874
		Preferred Member Units (Valley Healthcare Holding, LLC) (400 units)	—	—		400		435
						3,274		3,309
U.S. Telepacific Corp. (8)										Provider of Communications and Managed Services	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.60%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	16,453		16,127		16,011
VIP Cinema Holdings, Inc. (8)	Supplier of Luxury Seating to the Cinema Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.31%, Secured Debt (Maturity - March 1, 2023)	3 month LIBOR	9,500		9,459		9,610		Supplier of Luxury Seating to the Cinema Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - March 1, 2023)	1 month LIBOR	9,000		8,967		8,415
Vistar Media, Inc. (8) (11)	Operator of Digital Out-of-Home Advertising Platform	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.31%, Secured Debt (Maturity - February 16, 2022)	3 month LIBOR	3,319		3,059		3,102
Vistar Media, Inc. (11)										Operator of Digital Out-of-Home Advertising Platform	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.62%, Secured Debt (Maturity - February 16, 2022) (8)	3 month LIBOR	3,263		3,060		3,263
		Warrants (70,207 equivalent units, Expiration - February 17, 2027)	—	—		331		600			Warrants (70,207 equivalent units, Expiration - February 17, 2027)	—	—		331		640
						3,390		3,702							3,391		3,903
Volusion, LLC (10) (13)	Provider of Online Software-as-a-Service eCommerce Solutions	11.50% Secured Debt (Maturity - January 24, 2020)	None	7,172		6,523		6,523		Provider of Online Software-as-a-Service eCommerce Solutions	11.50% Secured Debt (Maturity - January 24, 2020)	None	8,672		8,336		8,336
		Preferred Member Units (2,090,001 units)	—	—		6,000		6,000			8.00% Unsecured Convertible Debt (Maturity - November 16, 2023)	None	175		175		175
		Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)	—	—		1,104		630			Preferred Member Units (2,090,001 units)	—	—		6,000		6,000
						13,627		13,153			Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)	—	—		1,104		810
Wellnext, LLC (8) (11)	Manufacturer of Supplements and Vitamins	LIBOR Plus 10.10% (Floor 1.00%), Current Coupon 11.98%, Secured Debt (Maturity - July 21, 2022) (23)	1 month LIBOR	9,930		9,861		10,228
															15,615		15,321
Wireless Vision Holdings, LLC (8) (11)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.80%, Secured Debt (Maturity - September 29, 2022) (23)	1 month LIBOR	12,867		12,556		12,603		Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 9.91% (Floor 1.00%), Current Coupon 11.41% / 1.00% PIK, Current Coupon Plus PIK 12.41%, Secured Debt (Maturity - September 29, 2022) (23)	1 month LIBOR	14,130		13,747		13,973
Subtotal Non-Control/Non-Affiliate Investments (5) (85% of total portfolio investments at fair value)						$	925,303	$	909,632
YS Garments (8)										Designer and Provider of Branded Activewear	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.41%, Secured Debt (Maturity - August 9, 2024)	1 month LIBOR	7,406		7,338		7,304
Subtotal Non-Control/Non-Affiliate Investments (5) (81% of total portfolio investments at fair value)										Subtotal Non-Control/Non-Affiliate Investments (5) (81% of total portfolio investments at fair value)					$	929,741	$	902,841

Total Portfolio Investments						$	1,071,909	$	1,067,641						$	1,113,450	$	1,110,128

Short Term Investments (20)
Fidelity Institutional Money Market Funds (21)	—	Prime Money Market Portfolio, Class III Shares	—	—		$	—	$	—	—	Prime Money Market Portfolio, Class III Shares	—	—		$	5,606	$	5,606
US Bank Money Market Account (21)	—			—		10,998		10,998		—			—		7,040		7,040

Total Short Term Investments						$	10,998	$	10,998						$	12,646	$	12,646

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

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

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

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


			Three Months Ended March 31, 2018										Three Months Ended March 31, 2018										Three Months Ended March 31, 2019										Three Months Ended March 31, 2019
Portfolio Company																					Fair Value at December 31, 2018		Gross Additions (Cost)^*		Gross Reductions (Cost)^**			Net Unrealized Gain (Loss) ^***			Fair Value at March 31, 2019		Net Realized Gain (Loss)			Interest Income			Fee Income		Dividend Income

Affiliate Investments	Fair Value at December 31, 2017		Gross Additions (Cost)^*		Gross Reductions (Cost)^**			Net Unrealized Gain (Loss)			Fair Value at March 31, 2018		Net Realized Gain (Loss)		Interest Income		Fee Income		Dividend Income

AFG Capital Group, LLC
Member units	$	897	$	1	$	—		$	42		$	940	$	—	$	—	$	—	$	2	$	995	$	—	$	—		$	97		$	1,092	$	—		$	—		$	—	$	—
Warrants	215		—		—			10			225		—		—		—		—		237		—		—			23			260		—			—			—		—
Brewer Crane Holdings, LLC
Term loan	—		2,482		(49		)	—			2,433		—		68		—		—		2,347		3		(31		)	—			2,319		—			76			—		—
Preferred member units	—		1,070		—			—			1,070		—		—		—		8		1,070		—		—			—			1,070		—			—			—		8
Centre Technologies Holdings, LLC
Term loan																					$	—	$	3,062	$	(67	)	$	6		$	3,001	$	—		$	89		$	7	$	—
Preferred member units																					—		1,460		—			—			1,460		—			—			—		—
Chamberlin HoldCo, LLC
Term loan	—		5,402		(135		)	—			5,267		—		64		2		—		4,933		5		—			—			4,938		—			167			15		—
Member units																					4,735		—		—			545			5,280		—			—			—		36
Member units	—		2,860		—			—			2,860		—		—		—		—		183		—		—			—			183		—			—			—		—
Charlotte Russe, Inc.
Term loan	—		6,285		—			(63		)	6,222		—		107		—		—		3,090		—		(6,236		)	3,146			—		(5,430		)	(84		)	—		—
Common stock	—		2,470		—			—			2,470		—		—		—		—		—		—		—			—			—		—			—			—		—
Charps, LLC
Term loan	4,500		14		(400		)	(1		)	4,113		—		146		—		—		2,975		6		(167		)	(6		)	2,808		—			89			—		—
Preferred member units	163		—		—			134			297		—		—		—		—		568		—		—			370			938		—			—			—		30
Clad-Rex Steel, LLC
Term loan	3,320		3		—			(3		)	3,320		—		95		—		—		3,020		3		—			(3		)	3,020		—			90			—		—
Member units	2,375		—		—			69			2,444		—		—		—		—		2,653		—		—			—			2,653		—			—			—		13
Term loan (Clad-Rex Steel RE Investor, LLC)	293		—		(1		)	—			292		—		8		—		—		288		—		(2		)	—			286		—			7			—		—
Member units (Clad-Rex Steel RE Investor, LLC)	70		—		—			—			70		—		—		—		51		88		—		—			—			88		—			—			—		—
Copper Trail Energy Fund I, LP
LP interests																					—		4,029		—			(99		)	3,930		—			—			6		(250		)
Digital Products Holdings LLC
Term loan																					6,320		6		(83		)	—			6,243		—			206			—		—
Preferred member units																					2,116		—		—			(125		)	1,991		—			—			—		25
Direct Marketing Solutions, Inc.
Term loan			4,712		(147		)	—			4,565		—		88		3		—		4,404		5		(59		)	—			4,350		—			154			—		—
Preferred stock	—		2,100		—			—			2,100		—		—		—		—		3,725		—		—			313			4,038		—			—			—		—
Freeport Financial Funds
LP interests	8,506		—		—			—			8,506		—		—		—		203		10,980		—		(1,399		)	—			9,581		—			—			—		255
Gamber-Johnson Holdings, LLC
Term loan	5,850		6		(122		)	(7		)	5,727		—		188		—		—		5,371		7		(216		)	(7		)	5,155		—			139			—		—
Common stock	5,843		—		—			790			6,633		—		—		12		49		11,365		—		—			—			11,365		—			—			—		214
Guerdon Modular Holdings, Inc.
Term loan	2,660		103		—			(3		)	2,760		—		90		—		—
Term loan	—		70		—			—			70		—		1		—		—		3,001		5		—			(1		)	3,005		—			108			—		—
Common stock	—		—		—			—			—		—		—		—		—		—		—		—			—			—		—			—			—		—
Class B preferred units	—		—		—			—			—		—		—		—		—		—		—		—			—			—		—			—			—		—
Gulf Publishing Holdings, LLC
Term loan	3,151		3		(25		)	—			3,129		—		103		—		—		3,131		4		(33		)	—			3,102		—			102			—		—
Term loan	20		—		(20		)	—			—		—		—		—		—		—		20		—			—			20		—			—			—		—
Member units	1,210		—		—			—			1,210		—		—		—		—		1,030		—		—			52			1,082		—			—			—		—
Harris Preston Fund Investments
LP interests (HPEP 3, LP)	943		90		—			—			1,033		—		—		—		—		1,733		238		—			—			1,971		—			—			—		—
LP interests (2717 HM, LP)	536		—		—			—			536		—		—		—		—		1,133		1,195		—			—			2,328		—			—			—		—
Hawk Ridge Systems, LLC
Term loan	3,574		4		—			(3		)	3,575		—		98		—		—		3,575		6		(225		)	(6		)	3,350		—			99			—		—
Preferred member units	950		—		—			605			1,555		—		—		—		28		1,815		—		—			—			1,815		—			—			—		56
Preferred member units (HRS Services, ULC)	50		—		—			33			83		—		—		—		—		95		—		—			—			95		—			—			—		—
HWT, LLC
Term Loan																					2,484		391		(2,875		)	—			—		—			—			—		—
Member units																					986		—		(986		)	—			—		(47		)	—			9		(8		)
KMC Investor, LLC
Term loan																					6,795		8		—			—			6,803		—			209			—		—
Term loan																					259		1		(266		)	6			—		—			2			—		—
Term loan	2,454		—		—			4			2,458		—		83		—		—		991		—		(1		)	—			990		—			23			—		—
Member units	985		—		—			—			985		—		—		9		—		248		—		—			—			248		—			—			—		—
Member units (KMC RE Investor, LLC)																					3,060		—		—			—			3,060		—			—			—		12
Market Force Information, Inc.
Term loan	5,732		8		(120		)	—			5,620		—		194		—		—		5,617		5		—			—			5,622		—			201			—		—
Term loan																					50		140		(50		)	—			140		—			—			—		—
Member units	3,675		—		—			—			3,675		—		—		—		—		3,275		—		—			(478		)	2,797		—			—			—		—

M.H. Corbin Holding, LLC
Term loan	3,130		1		(74		)	—			3,057		—		142		—		—		$	2,934	$	188	$	(1,114	)	$	127		$	2,135	$	10		$	129		$	—	$	—
Member units																					—		1,100		—			92			1,192		—			—			—		—
Member units	1,500		—		—			—			1,500		—		—		9		—		250		—		—			(245		)	5		—			—			—		—
Mystic Logistics Holdings, LLC
Term loan	1,916		3		(51		)	—			1,868		—		62		—		—		1,877		4		(7		)	(2		)	1,872		—			61			—		—
Common stock	1,705		—		—			(193		)	1,512		—		—		—		—		52		1		—			125			178		—			—			—		—
NexRev, LLC
Term loan	—		4,371		(97		)	—			4,274		—		45		—		—		4,322		4		—			(38		)	4,288		—			131			—		—
Preferred member units	—		1,720		—			—			1,720		—		—		3		—		1,972		—		—			(252		)	1,720		—			—			—		5
NuStep, LLC
Term loan	$	5,048	$	6	$	—		$	—		$	5,054	$	—	$	161	$	—	$	—	5,073		6		—			—			5,079		—			161			—		—
Preferred member units	2,550		—		(1		)	—			2,549		—		—		—		—		2,550		—		—			—			2,550		—			—			—		—
SoftTouch Medical Holdings, LLC
SI East, LLC
Term loan	1,260		10		(1,260		)	(10		)	—		—		21		—		—		11,582		8		—			(8		)	11,582		—			311			—		—
Preferred member units																					2,000		—		—			—			2,000		—			—			—		—
Soft Touch Medical Holdings, LLC
Member units	1,781		—		(869		)	(912		)	—		912		—		11		134		—		—		—			—			—		(41		)	—			—		—
Tedder Acquisition, LLC
Term loan																					3,983		5		—			—			3,988		—			128			—		—
Term loan																					118		—		—			—			118		—			4			—		—
Preferred member units																					1,869		—		—			—			1,869		—			—			—		—
	$	76,862	$	33,794	$	(3,371	)	$	492		$	107,777	$	912	$	1,764	$	49	$	475	$	149,323	$	11,915	$	(13,817	)	$	3,632		$	151,053	$	(5,508	)	$	2,602		$	37	$	396

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

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

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

(5) Non-Control/Non-Affiliate investments are generally ~~defined by the 1940 Act as~~ investments that are neither Control investments nor Affiliate investments.

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


			Three Months Ended March 31, 2018										Three Months Ended March 31, 2018										Three Months Ended March 31, 2019										Three Months Ended March 31, 2019
Controlled Investments	Fair Value at December 31, 2017		Gross Additions (Cost)^**		Gross Reductions (Cost)^***			Net Unrealized Gain (Loss)			Fair Value at March 31, 2018		Net Realized Gain (Loss)		Interest Income		Fee Income		Dividend Income
Portfolio Company																					Fair Value at December 31, 2018		Gross Additions (Cost)^**		Gross Reductions (Cost)^***			Net Unrealized Gain (Loss)			Fair Value at March 31, 2019		Net Realized Gain (Loss)		Interest Income		Fee Income		Dividend Income

Control Investments
Copper Trail Energy Fund I, LP
LP interests																					$	4,468	$	23	$	(4,491	)	$	—		$	—	$	—	$	—	$	—	$	—
CTMH, LP
LP interests	$	2,500	$	—	$	—		$	—		$	2,500	$	—	$	—	$	—	$	34	872		—		—			—			872		—		—		—		—
GRT Rubber Technologies, LLC
Term loan	5,715		7		(103		)	(7		)	5,612		—		156		—		—		4,797		868		—			(2		)	5,663		—		123		—		—
Member units	10,821		—		—			714			11,535		—		—		17		136		19,239		—		—			1,098			20,337		—		—		17		1,307
HMS-ORIX SLF LLC^*
Membership interests	30,643		—		—			(58		)	30,585		—		—		—		525		26,351		1		—			3,010			29,362		—		—		—		546
	$	49,679	$	7	$	(103	)	$	649		$	50,232	$	—	$	156	$	17	$	695	$	55,727	$	892	$	(4,491	)	$	4,106		$	56,234	$	—	$	123	$	17	$	1,853

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

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

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

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

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

(9) The investment is not a qualifying asset in an eligible portfolio company under Section 55(a) of the 1940 Act. A business development company (“BDC”) may not acquire any asset other than qualifying assets in eligible portfolio companies unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. As of March 31, ~~2018,~~2019, approximately ~~16.0%~~12.9% of the Company’s total assets were considered non-qualifying.

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

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

(12) Investment or portion of investment is under contract to purchase and met trade date accounting criteria as of March 31, ~~2018.~~2019. Settlement occurred or is scheduled to occur after March 31, ~~2018.~~2019.

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

(14) Second lien secured debt investment.

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

(16) Income producing through dividends or distributions.

(17) Unsecured debt investment.

(18) Investment is on non-accrual status as of March 31, ~~2018.~~2019.

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

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

(21) Effective yield as of March 31, ~~2018~~2019 was approximately ~~0.25%~~0.30% at US Bank Money Market Account and ~~1.29%~~2.08% at Fidelity Institutional Money Market Funds.

(22) The 1, 2, 3, and 6-month London Interbank Offered Rate (“LIBOR”) ~~rates~~ were ~~1.88%~~2.49%, ~~2.00%~~2.56%, ~~2.31%~~2.60% and ~~2.45%~~2.66%, respectively, as of March 31, ~~2018.~~2019. The actual LIBOR ~~rate~~ for each loan listed may not be the applicable LIBOR ~~rate~~ as of March 31, ~~2018,~~2019, as the loan may have been priced or repriced based on a LIBOR ~~rate~~ prior ~~to or subsequent~~ to March 31, ~~2018.~~2019. The prime rate was ~~4.75%~~5.50% as of March 31, ~~2018.~~2019.

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

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

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

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

See notes to the condensed consolidated financial statements.


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

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

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

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

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

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

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


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

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

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

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

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

(1) All investments are Middle Market portfolio investments, unless otherwise noted. All of the assets of the Company are encumbered as security for the Company’s credit agreements. See Note ~~6 -~~5 — Borrowings.

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

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

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


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

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

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

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

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

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

(5) Non-Control/Non-Affiliate investments are ~~defined by the 1940 Act as~~generally investments that are neither Control investments nor Affiliate investments.

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


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

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

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

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

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

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

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

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

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

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

(14) Second lien secured debt investment.

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

(16) Income producing through dividends or distributions.

(17) Unsecured debt investment.

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

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

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

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

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

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

See notes to the consolidated financial statements.

HMS Income Fund, Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Note 1 –— Principal Business and Organization

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

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

The Company previously registered for sale up to 150,000,000 shares of common stock pursuant to a registration statement on Form N-2 (File No. 333-178548) which was initially declared effective by the Securities and Exchange Commission (the “SEC”) on June 4, 2012 (the “Initial Offering”). The Initial Offering terminated on December 1, 2015. The Company raised approximately $601.2 million under the Initial Offering, including proceeds from the ~~dividend~~distribution reinvestment plan of approximately $22.0 million. The Company also registered for sale up to $1,500,000,000 worth of shares of common stock (the “Offering”) pursuant to a new registration statement on Form N-2 (File No. 333-204659), as ~~amended.~~amended and declared effective by the SEC on May 1, 2017. With the approval of the Company’s board of directors, the Company closed the Offering to new investors effective September 30, 2017. Through March 31, ~~2018,~~2019, the Company raised approximately ~~$191.0~~$217.6 million in the Offering, including proceeds from the distribution reinvestment plan of approximately ~~$59.3~~$85.9 million.

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

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

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

Basis of Presentation and Consolidation

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

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

Amounts as of December 31, ~~2017~~2018 included in the unaudited condensed consolidated financial statements have been derived from the Company’s audited consolidated financial statements as of that date. All intercompany accounts and transactions have been eliminated in consolidation. Certain financial information that is normally included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted herein. The current period’s results of operations are not necessarily indicative of results that ultimately may be achieved for the year. Therefore, these financial statements should be read in conjunction with the Company’s financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K (as amended) for the year ended December 31, ~~2017,~~2018, which was filed with the SEC on March ~~21, 2018.~~8, 2019.

Reclassifications

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

Interest, Fee and Dividend Income

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

As of March 31, ~~2018,~~2019, the Company had five debt investments in three portfolio companies that were more than 90 days past due, including four debt investments in two portfolio companies that were on non-accrual status. The debt investments on non-accrual status ~~all~~comprised approximately 0.1% of ~~which were more than 90 days past due.~~the Company’s total investment portfolio at fair value and 0.4% of the total investment

portfolio at cost. Each of these portfolio companies experienced a significant decline in credit quality raising doubt regarding the Company’s ability to collect the principal and interest contractually due. Given the credit deterioration of these portfolio companies, the Company ceased accruing interest income on the non-accrual debt investments and wrote off any previously accrued interest deemed uncollectible. As of March 31, ~~2018,~~2019, the Company is not aware of any other material changes to the creditworthiness of the borrowers underlying its debt investments.

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

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

As of March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, the Company held 1828 and 1924 investments, respectively, which contained a PIK provision. As of March 31, ~~2018, two~~2019, four of the 1828 investments with PIK provisions were on non-accrual status. No PIK interest was recorded on these ~~two~~four non-accrual investments during the three months ended March 31, ~~2018.~~2019. As of December 31, ~~2017, three~~2018, four of the 1924 investments with PIK provisions were on non-accrual status. No PIK interest was recorded on these investments during the year ended December 31, ~~2017.~~2018. For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the Company capitalized ~~$212,000~~$1.2 million and ~~$320,000,~~$212,000, respectively, of PIK interest income. The Company stops accruing PIK interest and writes off any accrued and uncollected interest in arrears when it determines that such PIK interest in arrears is no longer collectible.

The Company may periodically provide services, including structuring and advisory services, to its portfolio companies or other third parties. The income from such services is non-recurring. For services that are separately identifiable and evidence exists to substantiate fair value, income is recognized as earned, which is generally when the investment or other applicable transaction closes. For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the Company recognized ~~$334,000~~$361,000 and ~~$785,000,~~$334,000, respectively, of non-recurring fee income received from its portfolio companies or other third parties, which accounted for approximately ~~1.3%~~1.2% and ~~3.1%~~1.4%, respectively, of the Company’s total investment income during such period. Fees received in connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are deferred and accreted into interest income over the life of the financing.

Recent Accounting Pronouncements

In ~~May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014‑09,~~ ~~Revenue from Contracts with Customers (Topic 606). ASU 2014‑09 supersedes the revenue recognition requirements under ASC 605,~~ ~~Revenue Recognition~~, and most industry‑specific guidance throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. In March 2016,August 2018, the FASB issued ASU ~~2016-08,~~ ~~Revenue from Contracts with Customers~~2018-13, “Fair Value Measurement (Topic ~~606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)~~820),” which ~~clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10,~~ ~~Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,~~ ~~which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU No. 2016‑12,~~ ~~Revenue from Contracts with Customers (Topic 606)-Narrow‑Scope Improvements and Practical Expedients, which clarified guidance on assessing collectability, presenting sales tax, measuring non-cash consideration, and certain transition matters. The new guidance~~ is ~~effective for the annual reporting period beginning after December 15, 2017. Substantially all of the Company’s income is not within the scope of ASU 2014-09. For those income items~~intended to improve fair value

disclosure requirements by removing disclosures that are not cost-beneficial, clarifying disclosures’ specific requirements, and adding relevant disclosure requirements. The amendments take effect for all organizations for fiscal years, and interim periods within the scope of ASU 2014-09 (primarily fee income), the Company has similar performance obligations as compared with deliverables and separate units of account previously identified. As a result, the Company’s timing of its revenue recognition remains the same and the adoption of the standard was not material.

~~In January 2016, the FASB issued ASU 2016-01,Financial Instruments-Overall:~~ ~~Recognition and Measurement of Financial Assets and Financial Liabilities~~ ~~which amends the guidance related to the classification and measurement of investments in equity securities. The guidance requires equity investments (except~~ those ~~accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The~~

ASU will also amend the guidance related to the presentation of certain fair value changes for financial liabilities measured at fair value and certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for fiscal years, beginning after December 15, ~~2017, including interim periods within those fiscal years.~~2019. Early adoption is permitted. The Company is currently evaluating

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

In August 2018, the SEC adopted rules (the "SEC Release") that require disclosure of changes in net assets within a registrant's Form 10-Q filing on a quarter-to-date and year-to-date basis for both the current year and prior year comparative periods. The Company adopted the new ~~accounting standard~~requirement to present changes in shareholders' equity in interim financial statements within Form 10-Q filings. The compliance date for the SEC Release was for all filings, as applicable, on or after November 5, 2018. The adoption of this rule did not have a material impact on the Company’s condensed consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues including, among other things, the classification of debt prepayment or debt extinguishment costs. ASU No. 2016-15 is effective for annual reporting periods, and the interim periods within those periods, beginning after December 15, 2017. The impact of the adoption of this new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

~~In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230),”~~which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017. The amendment should be adopted retrospectively. The impact of the adoption of this new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

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

Note 3 — Fair Value Hierarchy for Investments

Fair Value Hierarchy

ASC Topic 820, Fair Value Measurement and Disclosures (“ASC 820”), establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment.

Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

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

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

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

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

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

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

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

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

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

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

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

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

Current and projected financial condition of the portfolio company;

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

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

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

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

Pending debt or capital restructuring of the portfolio company;

Projected operating results of the portfolio company;

Current information regarding any offers to purchase the investment;

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

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

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

Qualitative assessment of key management;

Contractual rights, obligations or restrictions associated with the investment;

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

Other factors deemed relevant.

The following table presents fair value measurements of the Company’s investments, by ~~major class,~~type of investment, as of March 31, ~~2018~~2019 according to the fair value hierarchy (dollars in thousands):


	Fair Value Measurements								Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
First lien secured debt investments	$	—	$	—	$	841,351	$	841,351	$	—	$	—	$	844,077	$	844,077
Second lien secured debt investments	—		—		94,278		94,278		—		—		92,384		92,384
Unsecured debt investments	—		—		11,012		11,012		—		—		12,819		12,819
Equity investments ⁽¹⁾	—		—		121,000		121,000		—		—		160,848		160,848
Total	$	—	$	—	$	1,067,641	$	1,067,641	$	—	$	—	$	1,110,128	$	1,110,128

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

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


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

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

The following table presents fair value measurements of the Company’s investments, by investment classification, segregated by the level within the fair value hierarchy as of March 31, ~~2018~~2019 (dollars in thousands):


	Fair Value Measurements								Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
LMM portfolio investments	$	—	$	—	$	159,354	$	159,354	$	—	$	—	$	217,179	$	217,179
Private Loan investments	—		—		354,263		354,263		—		—		435,716		435,716
Middle Market investments	—		—		505,250		505,250		—		—		400,575		400,575
Other Portfolio investments ⁽¹⁾	—		—		48,774		48,774		—		—		56,658		56,658
Total	$	—	$	—	$	1,067,641	$	1,067,641	$	—	$	—	$	1,110,128	$	1,110,128

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


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

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

The significant unobservable inputs used in the fair value measurement of the Company’s LMM, Middle Market and Private Loan debt investments are (i) risk adjusted discount rates used in the yield-to-maturity valuation technique (described in Note 2 -— Basis of Presentation and Summary of Significant Accounting Policies -— Valuation of Portfolio Investments in the Company’s Annual Report on Form 10-K, as amended, for the year ended December 31, ~~2017,~~2018, which was filed with the SEC on March ~~21, 2018)~~8, 2019) and (ii) the percentage of expected principal recovery. Increases (decreases) in any of these discount rates in isolation could result in a significantly lower (higher) fair value measurement. Increases (decreases) in any of these expected principal recovery percentages in isolation could result in a significantly higher (lower) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s LMM equity securities and Private Loan equity securities, which are generally valued through an average of the discounted cash flow technique and the market comparable/enterprise value technique (unless one of these approaches is not applicable), are (i) EBITDA multiples and (ii) the weighted average cost of capital (“WACC”). Increases

(decreases) in EBITDA multiple inputs in isolation could result in a significantly higher (lower) fair value measurement. Conversely, increases (decreases) in WACC inputs in isolation could result in a significantly lower (higher) fair value measurement. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third-party appraisals of collateral and fair values as determined by independent third parties, which are not presented in the table below.

The following table, which is not intended to be all inclusive, presents the significant unobservable inputs of the Company’s Level 3 investments as of March 31, ~~2018~~2019 (dollars in thousands):


	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range	Weighted Average ⁽²⁾	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range	Weighted Average ⁽²⁾
LMM equity investments	$	56,721	Discounted Cash Flow	WACC	12.8% - 17.4%	14.1%	$	83,067	Discounted Cash Flows	WACC	11.8% - 17.5%	13.8%
			Market Approach/Enterprise Value	EBITDA Multiples ⁽¹⁾	4.0x - 10.0x	7.1x			Market Approach/Enterprise Value	EBITDA Multiples ⁽¹⁾	4.5x - 8.5x	6.7x
LMM debt investments	102,633		Discounted Cash Flow	Expected Principal Recovery	23.0% - 100.0%	98.8%	134,112		Discounted Cash Flows	Expected Principal Recovery	97.0% - 100.0%	99.9%
				Risk Adjusted Discount Factor	10.0% - 20.5%	12.8%				Risk Adjusted Discount Factor	8.3% - 20.5%	11.7%
Private Loan debt investments	236,314		Discounted Cash Flow	Expected Principal Recovery	2.8% - 100.0%	99.8%	310,932		Discounted Cash Flows	Expected Principal Recovery	1.5% - 100.0%	100.0%
				Risk Adjusted Discount Factor	4.9% - 28.7%	13.5%				Risk Adjusted Discount Factor	4.3% - 20.2%	8.1%
	109,116		Market Approach	Third Party Quotes	89.4% - 103.0%	98.6%	107,702		Market Approach	Third Party Quotes	93.9% - 101.0%	99.2%
Private Loan equity investments	8,833		Market Approach/Enterprise Value	EBITDA Multiples ⁽¹⁾	5.0x - 9.5x	7.7x	17,082		Market Approach/Enterprise Value	EBITDA Multiples ⁽¹⁾	4.9x - 9.5x	7.0x
			Discounted Cash Flow	WACC	11.8% - 13.8%	12.6%			Discounted Cash Flows	WACC	11.6% - 14.3%	12.7%
Middle Market debt investments	498,578		Market Approach	Third Party Quotes	32.5% - 106.5%	97.0%	6,641		Discounted Cash Flows	Expected Principal Recovery	100.0% - 100.0%	100.0%
										Risk Adjusted Discount Factor	11.9% - 30.8%	32.2%
							389,893		Market Approach	Third Party Quotes	41.5% - 100.9%	94.4%
Middle Market equity investments	6,672		Market Approach	Third Party Quotes	$1.3 - $325.0	$307.2	4,041		Market Approach	Third Party Quotes	$0.5 - $250.0	$102.7
			Discounted Cash Flow	WACC	15.7% - 15.7%	15.7%			Discounted Cash Flows	WACC	17.3% - 18.0%	17.3%
			Market Approach/ Enterprise Value	EBITDA Multiples⁽¹⁾	5.5x - 5.5x	5.5x			Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	3.9x - 5.5x	5.5x
Other Portfolio investments⁽³⁾	48,774		Market Approach	NAV ⁽¹⁾	87.2% - 106.3%	100.6%	56,658		Market Approach	NAV ⁽¹⁾	87.2% - 118.9%	99.5%
	$	1,067,641					$	1,110,128

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

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

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

The following table, which is not intended to be all inclusive, presents the significant unobservable inputs of the Company’s Level 3 investments as of December 31, ~~2017~~2018 (dollars in thousands):


	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range	Weighted Average ⁽²⁾	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range	Weighted Average ⁽²⁾
LMM equity investments	$	47,876	Discounted Cash Flows	WACC	12.6% - 17.4%	13.9%	$	79,641	Discounted Cash Flows	WACC	11.8% - 17.5%	13.7%
			Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	4.0x - 10.0x	7.1x			Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	4.3x - 8.5x	6.6x
LMM debt portfolio investments	87,781		Discounted Cash Flows	Expected Principal Recovery	28.0% - 100.0%	98.9%
LMM debt investments							130,633		Discounted Cash Flows	Expected Principal Recovery	97.0% - 100.0%	99.9%
				Risk Adjusted Discount Factor	10.6% - 20.5%	12.3%				Risk Adjusted Discount Factor	9.6% - 20.0%	12.5%
Private Loan debt investments	228,789		Discounted Cash Flows	Expected Principal Recovery	2.9% - 100.0%	99.7%	285,733		Discounted Cash Flows	Expected Principal Recovery	1.5% - 100.0%	99.8%
				Risk Adjusted Discount Factor	4.5% - 28.3%	7.9%				Risk Adjusted Discount Factor	5.8% - 30.3%	10.2%
	77,981		Market Approach	Third Party Quotes	92.0% - 102.0%	98.8%	106,301		Market Approach	Third Party Quotes	90.9% - 101.0%	98.6%
Private Loan equity investments	8,612		Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	5.0x - 9.5x	8.0x	16,905		Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	4.9x - 9.5x	6.9x
			Discounted Cash Flows	WACC	9.9% - 14.0%	11.8%			Discounted Cash Flows	WACC	11.4% - 14.2%	12.7%
Middle Market debt investments	545,217		Market Approach	Third Party Quotes	29.0% - 106.0%	96.1%	428,569		Market Approach	Third Party Quotes	56.2% - 100.9%	95.3%
Middle Market equity investments	4,575		Market Approach	Third Party Quotes	$1.6 - $345.0	$322.2	5,702		Market Approach	Third Party Quotes	$0.68 - $250.0	$98.1
			Discounted Cash Flow	WACC	15.3% - 15.3%	15.3%			Discounted Cash Flows	WACC	16.1% - 18.0%	16.1%
			Market Approach/ Enterprise Value	EBITDA Multiples⁽¹⁾	5.5x - 5.5x	5.5x			Market Approach/Enterprise Value	EBITDA Multiples⁽¹⁾	3.9x - 5.5x	5.5x
Other Portfolio investments⁽³⁾	48,608		Market Approach	NAV ⁽¹⁾	86.1% - 102.1%	100.3%	53,084		Market Approach	NAV ⁽¹⁾	85.5% - 119.3%	95.3%
	$	1,049,439					$	1,106,568

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

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

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

The following table provides a summary of changes in fair value of the Company’s Level 3 portfolio investments for the three months ended March 31, ~~2018~~2019 (dollars in thousands):


Type of Investment	January 1, 2018 Fair Value		PIK Interest Accrual		New Investments⁽¹⁾		Sales/ Repayments			Net Change in Unrealized Appreciation (Depreciation)⁽²⁾			Net Realized Gain (Loss)			March 31, 2018 Fair Value		January 1, 2019 Fair Value		PIK Interest Accrual		New Investments⁽¹⁾		Sales/ Repayments			Net Change in Unrealized Appreciation (Depreciation) ⁽²⁾			Net Realized Gain (Loss)			March 31, 2019 Fair Value
LMM Equity	$	47,876	$	—	$	8,161	$	(1,782	)	$	1,554		$	912		$	56,721	$	79,641	$	—	$	2,560	$	(938	)	$	1,851		$	(47	)	$	83,067
LMM Debt	87,781		18		17,809		(2,885		)	(90		)	—			102,633		130,633		169		6,158		(2,637		)	(221		)	10			134,112
Private Loan Equity	8,612		—		1,202		—			(981		)	—			8,833		16,905		—		19		(1,340		)	907			591			17,082
Private Loan Debt	306,770		21		61,925		(23,191		)	(164		)	69			345,430		392,034		928		23,299		(6,080		)	10,716			(2,263		)	418,634
Middle Market Debt	545,217		173		85,089		(131,623		)	10,600			(10,878		)	498,578		428,569		72		3,059		(26,870		)	(2,866		)	(5,430		)	396,534
Middle Market Equity	4,575		—		2,470		—			(373		)	—			6,672		5,702		—		—		—			(1,661		)	—			4,041
Other Portfolio⁽³⁾	48,608		—		90		—			76			—			48,774		53,084		—		2,456		(1,860		)	2,978			—			56,658
Total	$	1,049,439	$	212	$	176,746	$	(159,481	)	$	10,622		$	(9,897	)	$	1,067,641	$	1,106,568	$	1,169	$	37,551	$	(39,725	)	$	11,704		$	(7,139	)	$	1,110,128

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

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

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

The following table provides a summary of changes in fair value of the Company’s Level 3 portfolio investments for the three months ended March 31, ~~2017~~2018 (dollars in thousands):


Type of Investment	January 1, 2017 Fair Value		PIK Interest Accrual		New Investments⁽¹⁾		Sales/ Repayments			Net Change in Unrealized Appreciation (Depreciation) ⁽²⁾			Net Realized Gain (Loss)			March 31, 2017 Fair Value		January 1, 2018 Fair Value		PIK Interest Accrual		New Investments⁽¹⁾		Sales/ Repayments			Net Change in Unrealized Appreciation (Depreciation) ⁽²⁾			Net Realized Gain (Loss)			March 31, 2018 Fair Value
LMM Equity	$	37,616	$	—	$	3,118	$	(273	)	$	240		$	(40	)	$	40,661	$	47,876	$	—	$	8,161	$	(1,782	)	$	1,554		$	912		$	56,721
LMM Debt	78,444		46		9,890		(4,112		)	(1,989		)	—			82,279		87,781		18		17,809		(2,885		)	(90		)	—			102,633
Private Loan Equity	6,323		—		1,381		(2,917		)	(1,579		)	2,548			5,756		8,612		—		1,202		—			(981		)	—			8,833
Private Loan Debt	205,034		77		38,377		(9,613		)	(1,948		)	—			231,927		306,770		21		61,925		(23,191		)	(164		)	69			345,430
Middle Market Debt	638,374		146		55,791		(122,771		)	1,725			132			573,397		545,217		173		82,437		(131,623		)	10,600			(8,226		)	498,578
Middle Market Equity	5,090		51		—		—			(956		)	—			4,185		4,575		—		2,470		—			(373		)	—			6,672
Other Portfolio(3)	18,366		—		2,796		—			(258		)	—			20,904		48,608		—		90		—			76			—			48,774
Total	$	989,247	$	320	$	111,353	$	(139,686	)	$	(4,765	)	$	2,640		$	959,109	$	1,049,439	$	212	$	174,094	$	(159,481	)	$	10,622		$	(7,245	)	$	1,067,641

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

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

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

The total net change in unrealized appreciation (depreciation) for the three months ended March 31, ~~2018~~2019 and ~~2017~~2018 included in the Condensed Consolidated ~~Statement~~Statements of Operations that related to Level 3 assets still held as of March 31, ~~2018~~2019 and ~~2017~~2018 was approximately ~~$(2.4)~~$11.4 million and ~~$(0.9)~~$(2.4) million, respectively. For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, there were no transfers between Level 2 and Level 3 portfolio investments.

Portfolio Investment Composition

The composition of the Company’s investments as of March 31, 2019, at cost and fair value, was as follows (dollars in thousands):



	Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio
First lien secured debt investments	$	862,744	77.5	%	$	844,077	76.0	%
Second lien secured debt investments	98,317		8.8		92,384		8.3
Unsecured debt investments	12,911		1.2		12,819		1.2
Equity investments⁽¹⁾	137,491		12.3		158,956		14.3
Equity warrants	1,987		0.2		1,892		0.2
Total	$	1,113,450	100.0	%	$	1,110,128	100.0	%

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

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


	Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio		Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio
First lien secured debt investments	$	857,680	80.0	%	$	841,351	78.8	%	$	873,331	77.8	%	$	846,427	76.5	%
Second lien secured debt investments	92,964		8.7		94,278		8.8		98,281		8.8		93,573		8.4
Unsecured debt investments	11,347		1.0		11,012		1.0		12,038		1.1		11,236		1.0
Equity investments⁽¹⁾	107,906		10.1		119,077		11.2		136,051		12.1		153,313		13.9
Equity warrants	2,012		0.2		1,923		0.2		1,987		0.2		2,019		0.2
Total	$	1,071,909	100.0	%	$	1,067,641	100.0	%	$	1,121,688	100.0	%	$	1,106,568	100.0	%

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

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

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

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

The composition of the Company’s investments by geographic region as of March 31, 2019, at cost and fair value, was as follows (dollars in thousands) (since the Other Portfolio investments do not represent a single geographic region, this information excludes Other Portfolio investments):



	Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Northeast	$	143,343	13.6	%	$	135,374	12.9	%
Southeast	181,414		17.2		191,491		18.2
West	223,024		21.1		217,203		20.6
Southwest	238,095		22.5		235,385		22.3
Midwest	237,642		22.5		241,713		22.9
Non-United States	32,680		3.1		32,304		3.1
Total	$	1,056,198	100.0	%	$	1,053,470	100.0	%

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


	Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio		Investments at Cost		Cost Percentage of Total Portfolio		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Northeast	$	171,795	16.8	%	$	165,380	16.2	%	$	153,513	14.4	%	$	146,819	13.9	%
Southeast	174,008		17.0		181,646		17.8		171,384		16.1		181,182		17.2
West	197,526		19.3		195,578		19.2		230,843		21.7		221,012		21.0
Southwest	222,412		21.8		218,844		21.5		242,402		22.8		238,221		22.6
Midwest	225,377		22.0		225,788		22.2		233,392		21.9		233,067		22.1
Non-United States	32,052		3.1		31,631		3.1		33,497		3.1		33,183		3.2
Total	$	1,023,170	100.0	%	$	1,018,867	100.0	%	$	1,065,031	100.0	%	$	1,053,484	100.0	%

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

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

15.4 %
$ 154,098

15.4 %
Southeast 180,946

17.8

188,290

18.8
West 190,615

18.8

177,422

17.7
Southwest 193,219

19.0

190,926

19.1
Midwest 250,005

24.6

244,331

24.4
Non-United States 44,987

4.4

45,764

4.6
Total $ 1,015,680

100.0 %
$ 1,000,831

100.0 %

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


	Cost				Fair Value				Cost				Fair Value
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017		March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Commercial Services and Supplies	8.8	%	7.9	%	8.1	%	7.7	%	6.8	%	6.7	%	6.4	%	6.3	%
Media									6.2		5.5		6.2		5.5
Oil, Gas, and Consumable Fuels									5.7		4.7		5.8		4.7
Internet Software and Services									5.0		4.9		5.0		5.0
Construction and Engineering	6.5		5.4		6.6		5.5		4.9		4.9		5.1		5.1
IT Services									4.8		5.8		4.8		5.9
Aerospace and Defense	5.8		4.8		5.8		4.9		4.8		4.7		4.8		4.6
Diversified Consumer Services	5.0		3.6		4.9		3.7
Hotels, Restaurants and Leisure	4.9		6.2		4.9		6.3
Diversified Telecommunication Services	4.7		5.3		4.6		5.3		4.6		4.6		4.4		4.4
Communications Equipment	4.5		4.3		4.7		4.5		4.2		4.1		3.7		3.8
Media	4.3		4.0		4.2		3.9
IT Services	4.0		4.6		4.0		4.6
Machinery									4.0		4.0		5.4		5.3
Energy Equipment and Services	4.0		3.5		3.8		3.2		3.6		3.4		3.5		3.5
Internet Software and Services	3.6		3.3		3.6		3.3
Hotels, Restaurants, and Leisure									3.4		3.4		3.4		3.4
Specialty Retail									3.4		3.1		2.9		2.5
Distributors									3.2		3.2		3.1		3.1
Food Products									2.9		2.9		2.8		2.9
Leisure Equipment and Products									2.8		3.4		2.7		3.4
Computers and Peripherals									2.6		2.6		3.4		3.4
Diversified Consumer Services									2.3		2.3		1.6		1.8
Health Care Providers and Services									2.2		2.8		2.1		2.8
Construction Materials									2.2		2.3		2.4		2.4
Road & Rail									1.8		1.7		1.8		1.7
Internet and Catalog Retail									1.7		1.7		1.4		1.3
Software									1.6		1.7		1.9		1.9
Food & Staples Retailing									1.6		1.6		1.6		1.6
Professional Services	3.4		3.5		3.5		3.6		1.5		1.6		1.4		1.6
Machinery	3.4		3.5		4.0		4.0
Distributors	3.1		3.1		3.1		3.2
Leisure Equipment and Products	2.9		3.0		3.0		3.1
Oil, Gas and Consumable Fuels	2.8		2.4		2.8		2.5
Health Care Providers and Services	2.8		1.5		2.8		1.6
Food Products	2.5		2.6		2.5		2.6
Computers and Peripherals	2.3		2.3		2.6		2.6
Internet and Catalog Retail	1.9		1.9		1.5		1.6
Health Care Equipment and Supplies	1.8		2.0		1.7		2.1
Specialty Retail	1.6		2.9		1.6		2.0
Construction Materials	1.5		1.5		1.5		1.6
Diversified Financial Services	1.3		1.3		1.2		1.2
Trading Companies and Distributors	1.2		1.2		1.3		1.3		1.5		1.5		1.6		1.4
Capital Markets	1.2		1.1		1.3		1.1
Wireless Telecommunication Services									1.4		1.4		1.4		1.3
Containers and Packaging									1.3		1.3		1.3		1.3
Household Durables									1.2		1.3		1.2		1.3
Textiles, Apparel & Luxury Goods									1.1		1.1		1.1		1.0
Transportation Infrastructure	1.2		—		1.2		—		1.0		1.0		1.0		1.0
Food & Staples Retailing	1.0		1.0		1.0		1.0
Personal Products	1.0		1.0		1.0		1.0
Auto Components	0.7		2.7		0.7		2.4
Household Durables	0.4		1.6		0.4		1.6
Other ⁽¹⁾	5.9		7.0		6.1		7.0		4.7		4.8		4.8		4.8
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

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

Note 4 — Investment in HMS-ORIX SLF LLC

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

As of March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, HMS-ORIX had total assets of ~~$146.3~~$176.0 million and ~~$142.9~~$162.5 million, respectively, and HMS-ORIX’s portfolio consisted of 78114 and 74107 broadly-syndicated loans, respectively, all of which were secured by first-priority liens, generally in industries similar to those in which the Company may directly invest. As of both March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, there were no loans in HMS-ORIX’s portfolio that were on non-accrual status.

On April 5, 2017, HMS-ORIX closed on a $100.0 million credit facility with Bank of America, N.A. (the “Initial HMS-ORIX Credit Facility”). The ~~facility has~~Initial HMS-ORIX Credit Facility had a maturity date of April 5, 2020, and borrowings under the facility ~~bear~~accrued interest at a rate equal to LIBOR plus 1.65% per annum.

On November 20, 2018, HMS-ORIX closed on a $170.0 million credit facility with Citibank, N.A. (the “Refinanced HMS-ORIX Credit Facility”). The proceeds from the Refinanced HMS-ORIX Credit Facility were used to pay off the outstanding balance on the Initial HMS-ORIX Credit Facility, which was subsequently terminated. The reinvestment period for the Refinanced HMS-ORIX Credit Facility is scheduled to expire on September 6, 2019, and the maturity date is nine months after expiration of the reinvestment period (unless terminated earlier pursuant to the terms of the Refinanced HMS-ORIX Credit Facility). Borrowings under the Refinanced HMS-ORIX Credit Facility bear interest at a rate equal to the three-month LIBOR plus 1.15%. As of March 31, ~~2018~~2019 and December 31, ~~2017, $91.3~~2018, $123.1 million and ~~$86.5~~$98.8 million, respectively, ~~was~~of advances were outstanding under ~~this facility.~~the Refinanced HMS-ORIX Credit Facility. Borrowings under the facility are secured by substantially all of the assets of HMS-ORIX.

The following table presents a summary of HMS-ORIX’s portfolio as of March 31, ~~2018~~2019 and December 31, ~~2017~~2018 (dollars in thousands):


	As of March 31, 2018			As of December 31, 2017			As of March 31, 2019			As of December 31, 2018

Total debt investments ⁽¹⁾	$	140,212		$	138,908		$	170,325		$	165,025
Weighted average effective yield on loans⁽²⁾	5.26		%	4.95		%	5.91		%	5.82		%
Largest loan to a single borrower⁽¹⁾	$	3,487		$	3,496		$	3,452		$	3,461
Total of 10 largest loans to borrowers⁽¹⁾	$	30,812		$	30,790		$	30,228		$	30,430

(1) At principal amount.

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

The following table presents a listing of HMS-ORIX’s individual ~~loans~~loan investments as of March 31, ~~2018:~~2019:

																	HMS-ORIX	Loan Portfolio
As of March 31, 2018
As of March 31, 2019									As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value		Industry	Type of Investment	Principal		Cost		Fair Value

Acosta, Inc.	Commercial Services & Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - September 26, 2021)	$	1,995	$	1,884	$	1,679
Acrisure, LLC	Insurance	LIBOR (2 months) + 4.25%, Current Coupon 5.99%, Secured Debt (Maturity - November 22, 2023)	2,109		2,116		2,139		Insurance	LIBOR (2 months) + 4.25%, Current Coupon 6.88%, Secured Debt (Maturity - November 22, 2023)	$	2,486	$	2,482	$	2,478
Advantage Sales & Marketing Inc.	Commercial Services & Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.02%, Secured Debt (Maturity - July 23, 2021)	1,985		1,937		1,950		Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - July 23, 2021)	1,965		1,914		1,701
Air Medical Group Holdings, Inc.	Health Care Providers & Services	LIBOR (1 month) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - April 28, 2022)	1,985		1,975		1,996		Healthcare Providers and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - April 28, 2022)	1,965		1,956		1,875
Alphabet Holding Company, Inc.	Food Products	LIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - September 26, 2024)	1,990		1,981		1,860
AlixPartners, LLP									Professional Services	LIBOR (3 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - April 4, 2024)	990		990		988
American Seafoods Group LLC	Food Products	LIBOR (1 month) + 2.75%, Current Coupon 4.61%, Secured Debt (Maturity - August 21, 2023)	1,456		1,450		1,459		Food Products	Prime + 1.75%, Current Coupon 7.25%, Secured Debt (Maturity - August 21, 2023)	1,435		1,428		1,422
Ancestry.com Operations Inc.	Internet Software & Services	LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - October 19, 2023)	1,985		2,002		1,998		Internet Software and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - October 19, 2023)	1,293		1,306		1,291
Arch Coal, Inc.	Metals & Mining	LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - March 7, 2024)	1,980		1,986		1,994		Metals and Mining	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - March 7, 2024)	1,960		1,967		1,962
AshCo, Inc.	Specialty Retail	LIBOR (3 months) + 5.00%, Current Coupon 6.88%, Secured Debt (Maturity - September 25, 2024)	1,990		1,948		1,974
Asurion, LLC	Insurance	LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - November 3, 2023)	1,271		1,271		1,281
Atkore International, Inc.	Electric Equipment, Instruments & Components	LIBOR (3 months) + 2.75%, Current Coupon 5.06%, Secured Debt (Maturity - December 22, 2023)	2,970		2,988		2,993
BCP Renaissance Parent L.L.C.	Oil, Gas & Consumable Fuels	LIBOR (3 months) + 4.00%, Current Coupon 5.77%, Secured Debt (Maturity - October 31, 2024)	600		602		604

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

BMC Software Finance, Inc. Software LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - September 12, 2022) $ 3,148
$ 3,172
$ 3,167
Builders FirstSource, Inc. Building Products LIBOR (1 month) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - February 29, 2024) 2,970
2,966
2,986
Calpine Corporation Independent Power and Renewable Electricity Producers LIBOR (3 months) + 2.50%, Current Coupon 4.81%, Secured Debt (Maturity - January 15, 2023) 1,985
1,991
1,996
CHS/Community Health Systems, Inc. Healthcare Providers & Services LIBOR (3 months) + 3.00%, Current Coupon 4.98%, Secured Debt (Maturity - January 27, 2021) 1,613
1,608
1,554
ClubCorp Holdings, Inc. Real Estate Management & Development LIBOR (3 months) + 3.25%, Current Coupon 5.55%, Secured Debt (Maturity - September 18, 2024) 1,959
1,949
1,973
Colorado Buyer Inc Technology Hardware, Storage & Peripherals LIBOR (3 months) + 3.00%, Current Coupon 4.78%, Secured Debt (Maturity - May 1, 2024) 2,978
2,987
2,983
Confie Seguros Holding II Co. Insurance LIBOR (1 month) + 5.25%, Current Coupon 7.23%, Secured Debt (Maturity - April 19, 2022) 1,980
1,986
1,982
CPI International, Inc. Aerospace & Defense LIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - July 26, 2024) 1,990
1,990
2,001
Deerfield Holdings Corporation Diversified Financial Services LIBOR (1 month) + 3.25%, Current Coupon 5.55%, Secured Debt (Maturity - February 13, 2025) 3,000
2,996
3,014
Diamond Resorts International, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 4.50%, Current Coupon 6.38%, Secured Debt (Maturity - September 1, 2023) 2,146
2,173
2,187
EFS Cogen Holdings I LLC Electric Utilities LIBOR (3 months) + 3.25%, Current Coupon 5.56%, Secured Debt (Maturity - June 28, 2023) 1,890
1,902
1,906
Duff & Phelps Corporation Diversified Financial Services LIBOR (3 months) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - November 7, 2024) 1,000
1,001
1,009
Endo Luxembourg Finance Company I S.a.r.l. Pharmaceuticals LIBOR (1 month) + 4.25%, Current Coupon 6.19%, Secured Debt (Maturity - April 29, 2024) 1,985
2,003
1,985
Envision Healthcare Corporation Health Care Providers & Services LIBOR (1 month) + 3.00%, Current Coupon 4.88%, Secured Debt (Maturity - December 1, 2023) 1,415
1,415
1,423
Everi Payments Inc. Leisure Products LIBOR (3 months) + 3.50%, Current Coupon 5.49%, Secured Debt (Maturity - May 9, 2024) 1,985
1,979
2,003
Exgen Renewables IV, LLC Electrical Production LIBOR (3 months) + 3.00%, Current Coupon 4.99%, Secured Debt (Maturity - November 29, 2024) 299
299
303
First American Payment Systems, L.P. Diversified Financial Services LIBOR (1 month) + 4.75%, Current Coupon 6.44%, Secured Debt (Maturity - January 5, 2024) 930
941
937
Fitness International, LLC Hotels, Restaurants & Leisure LIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - July 1, 2020) 1,735
1,755
1,753
Flex Acquisition Company Inc Containers & Packaging LIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - December 29, 2023) 1,990
1,999
2,002
Flexera Software LLC Software LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - February 26, 2025) 1,529
1,526
1,541
Gardner Denver, Inc. Machinery LIBOR (1 month) + 2.75%, Current Coupon 5.05%, Secured Debt (Maturity - July 30, 2024) 1,990
2,000
2,002



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Asurion, LLC	Insurance	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 3, 2023)	$	1,258	$	1,258	$	1,256
		LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 4, 2024)	323		321		322
			1,581		1,579		1,578
Atkore International, Inc.	Electric Equipment, Instruments and Components	LIBOR (3 months) + 2.75%, Current Coupon 5.36%, Secured Debt (Maturity - December 22, 2023)	2,887		2,905		2,866
Barracuda Networks	Internet Software and Services	LIBOR (3 months) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - February 12, 2025)	997		972		992
Bass Pro Group, LLC	Specialty Retail	LIBOR (3 months) + 5.00%, Current Coupon 7.50%, Secured Debt (Maturity - September 25, 2024)	1,970		1,926		1,945
Bausch Health Companies Inc.	Healthcare Providers and Services	LIBOR (1 month) + 3.00%, Current Coupon 5.48%, Secured Debt (Maturity - June 2, 2025)	1,347		1,353		1,344
BCP Renaissance Parent L.L.C.	Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 6.24%, Secured Debt (Maturity - October 31, 2024)	596		597		595
Boxer Parent Company, Inc.	Software	LIBOR (3 months) + 4.25%, Current Coupon 6.85%, Secured Debt (Maturity - October 2, 2025)	2,793		2,767		2,751
Boyd Gaming Corporation	Hotel, Restaurant and Leisure	LIBOR (1 week) + 2.25%, Current Coupon 4.66%, Secured Debt (Maturity - September 15, 2023)	1,247		1,206		1,239
Builders FirstSource, Inc.	Building Products	LIBOR (1 month) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - February 29, 2024)	2,940		2,936		2,867
Caesars Resort Collection, LLC	Hotel, Restaurant and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - December 23, 2024)	1,244		1,208		1,234
Calpine Corporation	Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 2.50%, Current Coupon 5.11%, Secured Debt (Maturity - January 15, 2023)	1,964		1,971		1,963
CareerBuilder	Internet Software and Services	LIBOR (3 months) + 6.75%, Current Coupon 9.35%, Secured Debt (Maturity - July 31, 2023)	1,449		1,449		1,451
CDS U.S. Intermediate Holdings, Inc.	Hotel, Restaurant and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - July 8, 2022)	970		972		904
CenturyLink Inc.	Diversified Telecommunication Services	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - January 31, 2025)	995		942		979
Citgo Petroleum Corporation	Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 6.30%, Secured Debt (Maturity - July 29, 2021)	695		690		694
ClubCorp Holdings, Inc.	Real Estate Management and Development	LIBOR (3 months) + 2.75%, Current Coupon 5.35%, Secured Debt (Maturity - September 18, 2024)	1,959		1,949		1,867
Compass Power Generation, L.L.C.	Independent Power and Renewable Electricity Provider	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - December 20, 2024)	1,262		1,262		1,263
Creative Artists Agency, LLC	Entertainment	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 26, 2024)	1,970		1,970		1,945
		LIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - February 15, 2024)	995		981		993
			2,965		2,951		2,938

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

Golden Nugget, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 3.25%, Current Coupon 4.90%, Secured Debt (Maturity - October 4, 2023) $ 1,985
$ 1,985
$ 2,005
Greatbatch Ltd. Health Care Equipment & Supplies LIBOR (1 month) + 3.25%, Current Coupon 4.99%, Secured Debt (Maturity - October 27, 2022) 2,627
2,642
2,652
GYP Holdings III Corp. Trading Companies & Distributors LIBOR (1 month) + 3.00%, Current Coupon 4.77%, Secured Debt (Maturity - April 3, 2023) 3,474
3,496
3,493
Harbor Freight Tools USA, Inc. Specialty Retail LIBOR (1 month) + 2.50%, Current Coupon 4.38%, Secured Debt (Maturity - August 18, 2023) 1,975
1,982
1,980
HD Supply Waterworks, Ltd. Trading Companies & Distributors LIBOR (3 months) + 3.00%, Current Coupon 5.01%, Secured Debt (Maturity - August 1, 2024) 140
139
141
Horizon Pharma, Inc. Pharmaceuticals LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - March 29, 2024) 1,985
2,004
1,999
IG Investments Holdings, LLC Professional Services LIBOR (1 month) + 3.50%, Current Coupon 5.80%, Secured Debt (Maturity - October 29, 2021) 1,985
1,996
2,012
IRB Holding Corp. Hotels, Restaurants & Leisure LIBOR (1 month) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - February 5, 2025) 400
400
405
Jackson Hewitt Tax Service Inc. Diversified Financial Services LIBOR (1 month) + 7.00%, Current Coupon 8.77%, Secured Debt (Maturity - July 30, 2020) 1,939
1,875
1,934
KBR Construction LIBOR (3 months) + 3.75%, Current Coupon 5.76%, Secured Debt (Maturity - March 28, 2025) 1,250
1,244
1,244
KMG Chemicals, Inc. Chemicals LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 17, 2024) 807
804
813
KUEHG Corp. Educational Services LIBOR (1 month) + 3.75%, Current Coupon 6.05%, Secured Debt (Maturity - August 12, 2022) 2,476
2,482
2,494
LANDesk Group, Inc. Software LIBOR (1 month) + 4.25%, Current Coupon 6.13%, Secured Debt (Maturity - January 22, 2024) 991
996
976
Learfield Communications LLC Media LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - December 1, 2023) 1,985
2,003
2,007
MA FinanceCo., LLC Electric Equipment, Instruments & Components LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 21, 2024) 387
387
383
Mallinckrodt International Finance S.A. Pharmaceuticals LIBOR (3 months) + 3.00%, Current Coupon 4.82%, Secured Debt (Maturity - February 24, 2025) 1,000
998
999
Mohegan Tribal Gaming Authority Hotels, Restaurants & Leisure LIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - October 13, 2023) 1,929
1,946
1,929
MPH Acquisition Holdings LLC Health Care Technology LIBOR (3 months) + 2.75%, Current Coupon 5.05%, Secured Debt (Maturity - June 7, 2023) 2,777
2,813
2,793
NAB Holdings, LLC IT Services LIBOR (3 months) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - July 1, 2024) 1,990
1,980
2,005
Ortho-Clinical Diagnostics, Inc Life Sciences Tools & Services LIBOR (1 month) + 3.75%, Current Coupon 5.63%, Secured Debt (Maturity - June 30, 2021) 1,975
1,971
1,994
PODS, LLC Transportation & Logistics LIBOR (1 month) + 3.00%, Current Coupon 4.71%, Secured Debt (Maturity - December 6, 2024) 1,990
1,989
2,006



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Cyxtera DC Holdings, Inc.	Technology Hardware, Storage and Peripherals	LIBOR (3 months) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - May 1, 2024)	$	2,948	$	2,958	$	2,900
Deerfield Holdings Corporation	Diversified Financial Services	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - February 13, 2025)	2,970		2,966		2,919
Diamond Resorts International, Inc.	Hotel, Restaurant and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 1, 2023)	2,125		2,152		2,053
EFS Cogen Holdings I LLC	Electric Utilities	LIBOR (3 months) + 3.25%, Current Coupon 5.86%, Secured Debt (Maturity - June 28, 2023)	1,816		1,829		1,808
Eldorado Resorts, Inc.	Hotel, Restaurant and Leisure	LIBOR (1 month) + 2.25%, Current Coupon 4.88%, Secured Debt (Maturity - April 17, 2024)	1,000		969		993
Encapsys LLC	Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - November 7, 2024)	990		991		978
Endo Luxembourg Finance Company I S.a.r.l.	Pharmaceuticals	LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - April 29, 2024)	1,965		1,983		1,940
Everi Payments Inc.	Leisure Products	LIBOR (3 months) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - May 9, 2024)	1,965		1,958		1,963
Exgen Renewables IV, LLC	Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 3.00%, Current Coupon 5.63%, Secured Debt (Maturity - November 29, 2024)	294		294		276
Financial & Risk US Holdings, Inc.	Software	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - October 1, 2025)	1,421		1,420		1,384
First American Payment Systems, L.P.	Diversified Financial Services	LIBOR (1 month) + 4.75%, Current Coupon 7.39%, Secured Debt (Maturity - January 5, 2024)	883		893		883
Fitness International, LLC	Hotel, Restaurant and Leisure	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - April 18, 2025)	2,034		2,045		2,021
Flex Acquisition Company Inc	Containers and Packaging	LIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - December 29, 2023)	1,970		1,979		1,931
Flexera Software LLC	Software	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - February 26, 2025)	1,514		1,511		1,510
Gardner Denver, Inc.	Machinery	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - July 30, 2024)	2,255		2,249		2,256
Golden Nugget, Inc.	Hotel, Restaurant and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.23%, Secured Debt (Maturity - October 4, 2023)	1,870		1,870		1,856
Gray Television, Inc.	Broadcast Radio and Television	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - February 12, 2025)	1,839		1,822		1,835
		LIBOR (1 month) + 2.50%, Current Coupon 4.98%, Secured Debt (Maturity - January 2, 2026)	285		280		284
			2,124		2,102		2,119
Greatbatch Ltd.	Pharmaceuticals	LIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - October 27, 2022)	1,934		1,945		1,933
GYP Holdings III Corp.	Trading Companies and Distributors	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - June 2, 2025)	3,439		3,464		3,355

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

Radiate Holdco, LLC Media LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - November 3, 2023) $ 3,275
$ 3,300
$ 3,267
LIBOR (1 month) + 3.00%, Current Coupon 4.88%, Secured Debt (Maturity - February 1, 2024) 2,564
2,538
2,538
5,838
5,805
Red Ventures, LLC Direct Marketing Services LIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - November 8, 2024) 1,990
1,976
2,010
Scientific Games International, Inc. Leisure Products LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - August 14, 2024) 899
900
903
Seattle SpinCo, Inc. Electric Equipment, Instruments & Components LIBOR (3 months) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 21, 2024) 2,613
2,616
2,590
SeaWorld Parks & Entertainment, Inc. Hotels, Restaurants & Leisure LIBOR (3 months) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - April 1, 2024) 1,980
1,982
1,975
Signode Industrial Group US Inc. Machinery LIBOR (1 month) + 2.75%, Current Coupon 4.40%, Secured Debt (Maturity - April 30, 2021) 2,733
2,750
2,735
SS&C Technologies Software LIBOR (1 month) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - February 28, 2025) 632
630
635
LIBOR (1 month) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - February 28, 2025) 225
225
227
855
862
Staples, Inc. Distributors LIBOR (3 months) + 4.00%, Current Coupon 5.79%, Secured Debt (Maturity - September 12, 2024) 1,995
1,990
1,980
Telenet Financing USD LLC Diversified Telecommunication Services LIBOR (1 month) + 2.50%, Current Coupon 4.28%, Secured Debt (Maturity - March 2, 2026) 1,655
1,655
1,665
Transdigm, Inc. Aerospace & Defense LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 9, 2023) 1,980
1,987
1,988
LIBOR (1 month) + 2.50%, Current Coupon 4.38%, Secured Debt (Maturity - August 22, 2024) 998
995
1,002
2,982
2,990
Travelport Finance (Luxembourg) S.A.R.L. Internet Software & Services LIBOR (3 months) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - March 17, 2025) 1,250
1,244
1,254
Traverse Midstream Partners LLC Oil, Gas & Consumable Fuels LIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024) 781
784
787
UFC Holdings, LLC Media LIBOR (3 months) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - August 18, 2023) 1,985
1,996
1,998
Ultra Resources, Inc. Oil, Gas & Consumable Fuels LIBOR (1 month) + 3.00%, Current Coupon 4.76%, Secured Debt (Maturity - April 12, 2024) 2,000
2,002
1,986
Utz Quality Foods, LLC Commercial Services & Supplies LIBOR (1 month) + 3.50%, Current Coupon 5.35%, Secured Debt (Maturity - November 21, 2024) 1,600
1,599
1,619
Valeant Pharmaceuticals International, Inc. Pharmaceuticals LIBOR (1 month) + 3.50%, Current Coupon 5.24%, Secured Debt (Maturity - April 1, 2022) 1,456
1,462
1,473
Vertiv Group Corporation Electrical Equipment LIBOR (3 months) + 4.00%, Current Coupon 5.67%, Secured Debt (Maturity - November 30, 2023) 1,555
1,568
1,564



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Harbor Freight Tools USA, Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 18, 2023)	$	1,944	$	1,950	$	1,910
Horizon Pharma, Inc.	Pharmaceuticals	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - March 29, 2024)	1,219		1,230		1,221
Hornblower Sub, LLC	Hotel, Restaurant and Leisure	LIBOR (3 months) + 4.50%, Current Coupon 7.10%, Secured Debt (Maturity - April 28, 2025)	1,995		1,989		1,999
Hyland Software, Inc.	Software	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 1, 2024)	498		485		498
Infiltrator Water Technologies, LLC	Specialty Retail	LIBOR (3 months) + 3.50%, Current Coupon 6.10%, Secured Debt (Maturity - May 23, 2025)	1,970		1,982		1,967
Invenergy Thermal Operating I LLC	Renewable Energy Provider	LIBOR (1 month) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - May 27, 2022)	1,392		1,371		1,382
		LIBOR (3 months) + 3.50%, Current Coupon 6.10%, Secured Debt (Maturity - August 28, 2025)	1,920		1,916		1,932
			3,312		3,287		3,314
IRB Holding Corp.	Food Products	LIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - February 5, 2025)	396		396		389
Ivanti Software, Inc.	Software	LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - January 22, 2024)	981		987		975
KBR, Inc.	Aerospace and Defense	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - April 25, 2025)	1,987		1,979		1,993
Kingpin Intermediate Holdings LLC	Diversified Consumer Services	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 3, 2024)	995		986		991
KUEHG Corp.	Diversified Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.35%, Secured Debt (Maturity - February 21, 2025)	2,451		2,458		2,434
Learfield Communications LLC	Media	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - December 1, 2023)	1,965		1,983		1,962
MA FinanceCo., LLC	Software	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 21, 2024)	383		384		377
Match Group, Inc.	Media	LIBOR (6 months) + 3.00%, Current Coupon 5.69%, Secured Debt (Maturity - February 24, 2025)	676		674		647
		LIBOR (3 months) + 2.50%, Current Coupon 5.08%, Secured Debt (Maturity - November 16, 2022)	2,000		1,998		1,998
			2,676		2,672		2,645
McAfee, LLC	Software	LIBOR (3 months) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 30, 2024)	945		932		945
McDermott International, Inc.	Construction and Engineering	LIBOR (1 month) + 5.00%, Current Coupon 7.50%, Secured Debt (Maturity - May 12, 2025)	990		971		954
Metro-Goldwyn-Mayer Inc.	Media	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - July 3, 2025)	995		969		990

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

Vistra Operations Company LLC Electric Utilities LIBOR (1 month) + 2.25%, Current Coupon 4.06%, Secured Debt (Maturity - December 14, 2023) $ 1,980
$ 1,991
$ 1,994
West Corporation Diversified Telecommunication Services LIBOR (1 month) + 3.50%, Current Coupon 5.40%, Secured Debt (Maturity - October 10, 2024) 650
649
652
LIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - October 10, 2024) 1,029
1,020
1,040
1,669
1,692
WideOpenWest Finance, LLC Diversified Telecommunication Services LIBOR (1 month) + 3.25%, Current Coupon 5.10%, Secured Debt (Maturity - August 18, 2023) 3,487
3,496
3,420
Total Loan Portfolio $ 140,265
$ 140,200



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Micro Holding Corp.	Media	LIBOR (1 month) + 2.50%, Current Coupon 4.99%, Secured Debt (Maturity - January 30, 2023)	$	997	$	971	$	982
		LIBOR (3 months) + 3.75%, Current Coupon 6.24%, Secured Debt (Maturity - September 13, 2024)	1,244		1,215		1,232
			2,241		2,186		2,214
Mohegan Tribal Gaming Authority	Hotel, Restaurant and Leisure	LIBOR (1 month) + 4.00%, Current Coupon 6.50%, Secured Debt (Maturity - October 13, 2023)	1,909		1,927		1,818
MPH Acquisition Holdings LLC	Health Care Technology	LIBOR (3 months) + 2.75%, Current Coupon 5.35%, Secured Debt (Maturity - June 7, 2023)	2,569		2,604		2,499
NAB Holdings, LLC	IT Services	LIBOR (3 months) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - July 1, 2024)	1,970		1,961		1,920
National Mentor Holdings, Inc.	Healthcare Facilities and Services	LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - March 9, 2026)	1,883		1,870		1,891
		LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - March 9, 2026)	117		116		117
			2,000		1,986		2,008
Ortho-Clinical Diagnostics, Inc	Life Sciences Tools and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - June 30, 2025)	1,935		1,931		1,868
Packaging Coordinators Midco Inc	Healthcare Facilities and Services	LIBOR (3 months) + 4.00%, Current Coupon 6.61%, Secured Debt (Maturity - June 30, 2023)	995		990		994
Party City Holdings Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 19, 2022)	1,240		1,220		1,237
Phoenix Guarantor Inc.	Healthcare Facilities and Services	LIBOR (1 month) + 4.50%, Current Coupon 6.98%, Secured Debt (Maturity - March 5, 2026)	917		903		905
PI UK Holdco II Limited	Diversified Financial Services	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - January 3, 2025)	2,970		2,949		2,932
Prime Security Services Borrower, LLC	Commercial Services and Supplies	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - May 2, 2022)	653		637		649
Rackspace Hosting, Inc.	Electric Equipment, Instruments and Components	LIBOR (3 months) + 3.00%, Current Coupon 5.74%, Secured Debt (Maturity - November 3, 2023)	3,242		3,266		3,061
Radiate Holdco, LLC	Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - February 1, 2024)	2,538		2,514		2,509
Radiology Partners, Inc.	Healthcare Facilities and Services	LIBOR (3 months) + 4.75%, Current Coupon 7.55%, Secured Debt (Maturity - July 9, 2025)	1,496		1,489		1,502
Red Ventures, LLC	Professional Services	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 8, 2024)	1,627		1,616		1,625
Savage Enterprises, LLC	Road and Rail	LIBOR (1 month) + 4.50%, Current Coupon 6.99%, Secured Debt (Maturity - August 1, 2025)	1,024		1,004		1,027
Scientific Games International, Inc.	Leisure Products	LIBOR (2 months) + 2.75%, Current Coupon 5.33%, Secured Debt (Maturity - August 14, 2024)	890		891		869
Seattle SpinCo, Inc.	Software	LIBOR (3 months) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 21, 2024)	2,587		2,590		2,548



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

SeaWorld Parks & Entertainment, Inc.	Hotel, Restaurant and Leisure	LIBOR (3 months) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - April 1, 2024)	$	1,960	$	1,962	$	1,947
ServiceMaster Company, LLC	Home and Office Products	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - November 8, 2023)	651		648		650
Sprint Communications, Inc.	Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - February 2, 2024)	499		492		491
SRS Distribution Inc.	Trading Companies and Distributors	LIBOR (3 months) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - May 23, 2025)	1,194		1,191		1,147
SS&C Technologies, Inc.	Software	LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 16, 2025)	200		199		198
		LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 16, 2025)	278		277		276
			478		476		474
Staples, Inc.	Distributors	LIBOR (3 months) + 4.00%, Current Coupon 6.49%, Secured Debt (Maturity - September 12, 2024)	1,975		1,970		1,961
Starfruit US Holdco LLC	Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - October 1, 2025)	1,250		1,247		1,240
Telenet Financing USD LLC	Diversified Telecommunication Services	LIBOR (1 month) + 2.25%, Current Coupon 4.73%, Secured Debt (Maturity - August 17, 2026)	1,655		1,653		1,635
Transdigm, Inc.	Aerospace and Defense	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 9, 2023)	1,960		1,967		1,925
		LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 22, 2024)	988		985		968
			2,948		2,952		2,893
Travelport Finance (Luxembourg) S.A.R.L.	Internet Software and Services	LIBOR (3 months) + 2.50%, Current Coupon 5.18%, Secured Debt (Maturity - March 17, 2025)	1,232		1,226		1,232
UFC Holdings, LLC	Media	LIBOR (3 months) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - August 18, 2023)	1,960		1,971		1,960
USS Ultimate Holdings Inc	Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - August 26, 2024)	597		588		596
Utz Quality Foods, LLC	Food Products	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - November 21, 2024)	1,580		1,579		1,580
VeriFone Systems, Inc.	Hardware	LIBOR (1 month) + 4.00%, Current Coupon 6.68%, Secured Debt (Maturity - August 20, 2025)	499		489		493
Vertafore, Inc.	Software	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - July 2, 2025)	2,494		2,482		2,463
Vertiv Group Corporation	Electrical Equipment	LIBOR (3 months) + 4.00%, Current Coupon 6.63%, Secured Debt (Maturity - November 30, 2023)	1,555		1,569		1,467
VFH Parent LLC	Diversified Financial Services	LIBOR (3 months) + 3.50%, Current Coupon 6.13%, Secured Debt (Maturity - March 2, 2026)	1,000		995		1,004
Vistra Operations Company LLC	Electric Utilities	LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - December 14, 2023)	1,960		1,971		1,955



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Wand NewCo 3, Inc.	Automobiles	LIBOR (1 month) + 3.50%, Current Coupon 5.98%, Secured Debt (Maturity - February 5, 2026)	$	1,200	$	1,189	$	1,203
Web.Com Group, Inc.	Internet Software and Services	LIBOR (3 months) + 3.75%, Current Coupon 6.24%, Secured Debt (Maturity - October 10, 2025)	909		908		900
West Corporation	Diversified Telecommunication Services	LIBOR (3 months) + 3.50%, Current Coupon 6.13%, Secured Debt (Maturity - October 10, 2024)	645		644		602
		LIBOR (3 months) + 4.00%, Current Coupon 6.63%, Secured Debt (Maturity - October 10, 2024)	1,019		1,009		963
			1,664		1,653		1,565
WideOpenWest Finance, LLC	Media	LIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - August 18, 2023)	3,452		3,462		3,355
William Morris Endeavor Entertainment, LLC	Recreation Facilities and Services	LIBOR (1 month) + 2.75%, Current Coupon 5.36%, Secured Debt (Maturity - May 16, 2025)	636		607		601
Zekelman Industries, Inc	Manufacturing	LIBOR (1 month) + 2.25%, Current Coupon 4.74%, Secured Debt (Maturity - June 14, 2021)	1,000		987		993
Total Loan Portfolio			$	170,325	$	169,827	$	167,819

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

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

Acosta, Inc.	Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 26, 2021)	$	2,000	$	1,881	$	1,766
Acrisure, LLC	Insurance	LIBOR (2 months) + 4.25%, Current Coupon 5.65%, Secured Debt (Maturity - November 22, 2023)	2,115		2,122		2,139		Insurance	LIBOR (2 months) + 4.25%, Current Coupon 6.77%, Secured Debt (Maturity - November 22, 2023)	$	2,492	$	2,487	$	2,422
Advantage Sales & Marketing Inc.	Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - July 23, 2021)	1,990		1,938		1,945		Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - July 23, 2021)	1,970		1,913		1,752
Air Medical Group Holdings Inc	Health Care Providers & Services	LIBOR (6 months) + 4.00%, Current Coupon 5.67%, Secured Debt (Maturity - April 28, 2022)	1,990		1,981		1,993
Albany Molecular Research, Inc.	Life Sciences Tools & Services	LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 28, 2024)	100		100		99
Alphabet Holding Company, Inc.	Food Products	LIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - September 26, 2024)	1,995		1,985		1,935
Air Medical Group Holdings, Inc.									Health Care Providers and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - April 28, 2022)	1,970		1,960		1,847
AlixPartners, LLP									Professional Services	LIBOR (3 months) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - April 4, 2024)	992		992		956
American Seafoods Group LLC	Food Products	Prime + 2.25%, Current Coupon 6.75%, Secured Debt (Maturity - August 21, 2023)	1,500		1,493		1,513		Food Products	LIBOR (1 month) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - August 21, 2023)	1,435		1,428		1,382
Ancestry.com Operations Inc.	Internet Software & Services	LIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 19, 2023)	1,995		2,013		2,007		Internet Software and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - October 19, 2023)	1,293		1,306		1,240
Arch Coal, Inc.	Metals & Mining	LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - March 7, 2024)	1,985		1,992		2,004		Metals and Mining	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - March 7, 2024)	1,965		1,972		1,916
AshCo, Inc.	Specialty Retail	LIBOR (3 months) + 5.00%, Current Coupon 6.57%, Secured Debt (Maturity - September 25, 2024)	1,995		1,951		1,993
Asurion, LLC	Insurance	LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - November 3, 2023)	1,312		1,312		1,320
Atkore International, Inc.	Electric Equipment, Instruments & Components	LIBOR (3 months) + 3.00%, Current Coupon 4.70%, Secured Debt (Maturity - December 22, 2023)	2,977		3,005		2,999

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

BCP Renaissance Parent L.L.C. Oil, Gas & Consumable Fuels LIBOR (3 months) + 4.00%, Current Coupon 5.38%, Secured Debt (Maturity - October 31, 2024) $ 600
$ 602
$ 608
BMC Software Finance, Inc. Software LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 12, 2022) 3,156
3,181
3,163
Builders FirstSource, Inc. Building Products LIBOR (1 month) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - February 29, 2024) 2,977
2,974
2,993
Calpine Corporation Independent Power and Renewable Electricity Producers LIBOR (3 months) + 2.50%, Current Coupon 4.20%, Secured Debt (Maturity - January 15, 2023) 1,990
1,997
1,991
CHS/Community Health Systems, Inc. Health Care Providers & Services LIBOR (3 months) + 3.00%, Current Coupon 4.48%, Secured Debt (Maturity - January 27, 2021) 1,613
1,608
1,543
ClubCorp Holdings, Inc. Real Estate Management & Development LIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - September 18, 2024) 1,959
1,949
1,969
Colorado Buyer Inc Technology Hardware, Storage & Peripherals LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - May 1, 2024) 2,985
2,995
3,008
Confie Seguros Holding II Co. Insurance LIBOR (1 month) + 5.25%, Current Coupon 6.73%, Secured Debt (Maturity - April 19, 2022) 1,985
1,992
1,987
CPI International, Inc. Aerospace & Defense LIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - July 26, 2024) 1,995
1,995
2,011
Diamond Resorts International, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 4.50%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023) 2,152
2,179
2,173
Duff & Phelps Corporation Diversified Financial Services LIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - October 15, 2024) 491
494
493
LIBOR (3 months) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - December 4, 2024) 2,728
2,724
2,737
3,219
3,218
3,230
EFS Cogen Holdings I LLC Electric Utilities LIBOR (3 months) + 3.25%, Current Coupon 4.95%, Secured Debt (Maturity - June 28, 2023) 1,904
1,917
1,925
Encapsys LLC Chemicals LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - November 7, 2024) 1,000
1,001
1,006
Endo Luxembourg Finance Company I S.a.r.l. Pharmaceuticals LIBOR (1 month) + 4.25%, Current Coupon 5.88%, Secured Debt (Maturity - April 29, 2024) 1,990
2,009
2,005
Envision Healthcare Corporation Health Care Providers & Services LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - December 1, 2023) 2,481
2,481
2,491
Everi Payments Inc. Leisure Products LIBOR (3 months) + 3.50%, Current Coupon 4.98%, Secured Debt (Maturity - May 9, 2024) 1,990
1,983
2,013
Exgen Renewables IV, LLC Electrical Production LIBOR (3 months) + 3.00%, Current Coupon 4.47%, Secured Debt (Maturity - November 29, 2024) 300
299
304
First American Payment Systems, L.P. Diversified Financial Services LIBOR (1 month) + 5.75%, Current Coupon 7.14%, Secured Debt (Maturity - January 5, 2024) 952
963
958
Fitness International, LLC Hotels, Restaurants & Leisure LIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - July 1, 2020) 1,735
1,757
1,760



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

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

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

Flex Acquisition Company Inc Containers & Packaging LIBOR (3 months) + 3.00%, Current Coupon 4.34%, Secured Debt (Maturity - December 29, 2023) $ 1,995
$ 2,004
$ 2,008
Flexera Software LLC Software LIBOR (1 month) + 3.50%, Current Coupon 4.83%, Secured Debt (Maturity - April 2, 2020) 1,995
2,013
2,008
Gardner Denver, Inc. Machinery LIBOR (1 month) + 2.75%, Current Coupon 4.44%, Secured Debt (Maturity - July 30, 2024) 1,995
2,005
2,004
Golden Nugget, Inc. Hotels, Restaurants & Leisure LIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 4, 2023) 1,990
1,990
2,008
Greatbatch Ltd. Health Care Equipment & Supplies LIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 27, 2022) 2,763
2,780
2,788
GYP Holdings III Corp. Trading Companies & Distributors LIBOR (1 month) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - March 31, 2023) 3,483
3,506
3,502
Harbor Freight Tools USA, Inc. Specialty Retail LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 18, 2023) 1,980
1,987
1,996
HD Supply Waterworks, Ltd. Trading Companies & Distributors LIBOR (6 months) + 3.00%, Current Coupon 4.46%, Secured Debt (Maturity - August 1, 2024) 140
140
141
Horizon Pharma, Inc. Pharmaceuticals LIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - March 29, 2024) 1,990
2,009
2,001
IG Investments Holdings, LLC Professional Services LIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - October 29, 2021) 1,990
2,002
1,992
Jackson Hewitt Tax Service Inc. Diversified Financial Services LIBOR (1 month) + 7.00%, Current Coupon 8.38%, Secured Debt (Maturity - July 30, 2020) 1,939
1,868
1,922
KMG Chemicals, Inc. Chemicals LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 17, 2024) 863
859
868
KUEHG Corp. Educational Services LIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - August 12, 2022) 2,482
2,489
2,493
LANDesk Group, Inc. Software LIBOR (1 month) + 4.25%, Current Coupon 5.82%, Secured Debt (Maturity - January 22, 2024) 993
999
947
Learfield Communications LLC Media LIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - December 1, 2023) 1,990
2,009
2,007
MA FinanceCo., LLC Electric Equipment, Instruments & Components LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024) 387
387
388
Mohegan Tribal Gaming Authority Hotels, Restaurants & Leisure LIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - October 13, 2023) 1,985
2,003
2,006
MPH Acquisition Holdings LLC Health Care Technology LIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - June 7, 2023) 2,896
2,935
2,905
NAB Holdings, LLC IT Services LIBOR (3 months) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - July 1, 2024) 1,990
1,981
2,000
Ortho-Clinical Diagnostics, Inc Life Sciences Tools & Services LIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - June 30, 2021) 1,985
1,980
1,992
PODS, LLC Transportation & Logistics LIBOR (1 month) + 3.00%, Current Coupon 4.40%, Secured Debt (Maturity - December 6, 2024) 1,995
1,994
2,010



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

Deerfield Holdings Corporation	Diversified Financial Services	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - February 13, 2025)	$	2,978	$	2,974	$	2,827
Diamond Resorts International, Inc.	Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023)	2,130		2,159		1,992
EFS Cogen Holdings I LLC	Electric Utilities	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - June 28, 2023)	1,816		1,830		1,781
Eldorado Resorts, Inc.	Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 17, 2024)	1,000		968		960
Encapsys LLC	Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - November 7, 2024)	993		994		970
Endo Luxembourg Finance Company I S.a.r.l.	Pharmaceuticals	LIBOR (1 month) + 4.25%, Current Coupon 6.81%, Secured Debt (Maturity - April 29, 2024)	1,970		1,989		1,862
Everi Payments Inc.	Leisure Products	LIBOR (3 months) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - May 9, 2024)	1,970		1,963		1,917
Exgen Renewables IV, LLC	Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - November 29, 2024)	294		293		281
Financial & Risk US Holdings, Inc.	Software	LIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - October 1, 2025)	1,425		1,424		1,363
First American Payment Systems, L.P.	Diversified Financial Services	LIBOR (1 month) + 4.75%, Current Coupon 7.29%, Secured Debt (Maturity - January 5, 2024)	889		900		885
Fitness International, LLC	Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - April 18, 2025)	2,039		2,050		1,963
Flex Acquisition Company Inc	Containers and Packaging	LIBOR (3 months) + 3.00%, Current Coupon 5.35%, Secured Debt (Maturity - December 29, 2023)	1,975		1,985		1,869
Flexera Software LLC	Software	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - February 26, 2025)	1,518		1,514		1,468
Gardner Denver, Inc.	Machinery	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - July 30, 2024)	2,316		2,309		2,242
Golden Nugget, Inc.	Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.19%, Secured Debt (Maturity - October 4, 2023)	1,875		1,875		1,811
GrafTech Finance Inc.	Metals and Mining	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - February 12, 2025)	1,950		1,931		1,850
Gray Television, Inc.	Broadcast Radio and Television	LIBOR (3 months) + 2.50%, Current Coupon 4.90%, Secured Debt (Maturity - January 2, 2026)	286		281		277
Greatbatch Ltd.	Pharmaceuticals	LIBOR (1 month) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - October 27, 2022)	2,000		2,012		1,956
GYP Holdings III Corp.	Trading Companies and Distributors	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - June 2, 2025)	3,448		3,473		3,261
Harbor Freight Tools USA, Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 18, 2023)	1,944		1,951		1,841
HD Supply Waterworks, Ltd.	Trading Companies and Distributors	LIBOR (6 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - August 1, 2024)	139		138		134

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

Rackspace Hosting, Inc. Electric Equipment, Instruments & Components LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - November 3, 2023) $ 3,284
$ 3,309
$ 3,286
Radiate Holdco, LLC Media LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - February 1, 2024) 2,570
2,544
2,547
Red Ventures, LLC Direct Marketing Services LIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - November 8, 2024) 1,995
1,981
1,996
Scientific Games International, Inc. Leisure Products LIBOR (1 month) + 3.25%, Current Coupon 4.67%, Secured Debt (Maturity - August 14, 2024) 399
401
403
Seattle Spin Co. Electric Equipment, Instruments & Components LIBOR (3 months) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024) 2,613
2,616
2,618
SeaWorld Parks & Entertainment, Inc. Hotels, Restaurants & Leisure LIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - April 1, 2024) 1,985
1,987
1,966
Signode Industrial Group US Inc. Machinery LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - April 30, 2021) 2,773
2,792
2,785
Staples, Inc. Distributors LIBOR (3 months) + 4.00%, Current Coupon 5.49%, Secured Debt (Maturity - September 12, 2024) 2,000
1,995
1,965
Telenet Financing USD LLC Diversified Telecommunications Services LIBOR (1 month) + 2.50%, Current Coupon 3.92%, Secured Debt (Maturity - March 2, 2026) 1,655
1,655
1,663
Transdigm, Inc. Aerospace & Defense LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 9, 2023) 1,985
1,992
1,990
LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - August 22, 2024) 1,000
998
1,006
2,985
2,990
2,996
Travelport Finance (Luxembourg) S.A.R.L. Internet Software & Services LIBOR (3 months) + 2.75%, Current Coupon 4.17%, Secured Debt (Maturity - September 2, 2021) 1,901
1,901
1,903
Traverse Midstream Partners LLC Oil, Gas & Consumable Fuels LIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024) 781
784
793
UFC Holdings, LLC Media LIBOR (3 months) + 3.25%, Current Coupon 4.81%, Secured Debt (Maturity - August 18, 2023) 1,990
2,002
2,003
Ultra Resources, Inc. Oil, Gas & Consumable Fuels LIBOR (1 month) + 3.00%, Current Coupon 4.41%, Secured Debt (Maturity - April 12, 2024) 2,000
2,002
2,002
Utz Quality Foods, LLC Commercial Services and Supplies LIBOR (1 month) + 3.50%, Current Coupon 5.01%, Secured Debt (Maturity - November 21, 2024) 1,600
1,599
1,616
Valeant Pharmaceuticals International, Inc. Pharmaceuticals LIBOR (1 month) + 3.50%, Current Coupon 4.94%, Secured Debt (Maturity - April 1, 2022) 1,546
1,553
1,570
Vertiv Group Corporation Electrical Equipment LIBOR (3 months) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - November 30, 2023) 1,555
1,569
1,556
Vistra Operations Company LLC Electric Utilities LIBOR (2 months) + 2.75%, Current Coupon 4.08%, Secured Debt (Maturity - December 14, 2023) 1,985
1,996
2,001
West Corporation Diversified Telecommunications Services LIBOR (1 month) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - October 10, 2024) 1,032
1,022
1,036



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

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

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

WideOpenWest Finance, LLC	Diversified Telecommunications Services	LIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - August 18, 2023)	$	3,496	$	3,506	$	3,470
Total Loan Portfolio					$	139,017	$	139,012
NAB Holdings, LLC									IT Services	LIBOR (3 months) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - July 1, 2024)	$	1,975	$	1,965	$	1,885
Ortho-Clinical Diagnostics, Inc									Life Sciences Tools and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.76%, Secured Debt (Maturity - June 30, 2025)	1,945		1,940		1,809
Packaging Coordinators Midco Inc									Health Care Facilities and Services	LIBOR (3 months) + 4.00%, Current Coupon 6.81%, Secured Debt (Maturity - June 30, 2023)	997		992		985
Party City Holdings Inc.									Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - August 19, 2022)	1,245		1,224		1,205
PI UK Holdco II Limited									Diversified Financial Services	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - January 3, 2025)	2,978		2,956		2,893
Prime Security Services, LLC (Protection One)									Commercial Services and Supplies	LIBOR (1 month) + 2.75%, Current Coupon 5.09%, Secured Debt (Maturity - May 2, 2022)	654		638		628
Rackspace Hosting, Inc.									Electric Equipment, Instruments and Components	LIBOR (3 months) + 3.00%, Current Coupon 5.58%, Secured Debt (Maturity - November 3, 2023)	3,251		3,276		2,884
Radiate Holdco, LLC									Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - February 1, 2024)	2,544		2,519		2,408
Red Ventures, LLC									Professional Services	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 8, 2024)	1,631		1,619		1,590
Savage Enterprises, LLC									Road and Rail	LIBOR (1 month) + 4.50%, Current Coupon 6.88%, Secured Debt (Maturity - August 1, 2025)	1,097		1,076		1,085
Scientific Games International, Inc.									Leisure Products	LIBOR (2 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - August 14, 2024)	892		893		840
Seattle SpinCo, Inc.									Software	LIBOR (3 months) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)	2,593		2,597		2,422
SeaWorld Parks & Entertainment, Inc.									Hotels, Restaurants and Leisure	LIBOR (3 months) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - April 1, 2024)	1,965		1,967		1,881
ServiceMaster Global Holdings, Inc.									Home and Office Products	LIBOR (1 month) + 2.50%, Current Coupon 4.84%, Secured Debt (Maturity - November 8, 2023)	2,000		1,993		1,964
Sprint Corporation									Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - February 2, 2024)	500		493		485
SRS Distribution Inc.									Trading Companies and Distributors	LIBOR (3 months) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - May 23, 2025)	1,197		1,194		1,120
SS&C European Holdings S.a.r.l.									Software	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)	206		205		195
SS&C Technologies, Inc.									Software	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)	543		541		514
Staples, Inc.									Distributors	LIBOR (3 months) + 4.00%, Current Coupon 6.54%, Secured Debt (Maturity - September 12, 2024)	1,980		1,975		1,903
Starfruit US Holdco LLC									Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.60%, Secured Debt (Maturity - October 1, 2025)	1,250		1,247		1,204
Telenet Financing USD LLC									Diversified Telecommunication Services	LIBOR (1 month) + 2.25%, Current Coupon 4.71%, Secured Debt (Maturity - August 17, 2026)	1,655		1,653		1,580



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

Transdigm, Inc.	Aerospace and Defense	LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 9, 2023)	$	1,965	$	1,972	$	1,859
		LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 22, 2024)	990		988		937
			2,955		2,960		2,796
Travelport Finance (Luxembourg) S.A.R.L.	Internet Software and Services	LIBOR (3 months) + 2.50%, Current Coupon 5.12%, Secured Debt (Maturity - March 17, 2025)	1,237		1,231		1,219
Traverse Midstream Partners LLC	Oil, Gas and Consumable Fuels	LIBOR (3 months) + 4.00%, Current Coupon 6.60%, Secured Debt (Maturity - September 27, 2024)	781		784		752
UFC Holdings, LLC	Media	LIBOR (3 months) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - August 18, 2023)	1,965		1,977		1,920
USS Ultimate Holdings, Inc. (United Site)	Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.09%, Secured Debt (Maturity - August 26, 2024)	598		590		590
Utz Quality Foods, LLC	Food Products	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - November 21, 2024)	1,584		1,583		1,539
VeriFone Systems, Inc.	Hardware	LIBOR (1 month) + 4.00%, Current Coupon 6.64%, Secured Debt (Maturity - August 20, 2025)	500		490		485
Vertafore, Inc.	Software	LIBOR (1 month) + 3.25%, Current Coupon 6.05%, Secured Debt (Maturity - July 2, 2025)	2,500		2,488		2,384
Vertiv Group Corporation	Electrical Equipment	LIBOR (3 months) + 4.00%, Current Coupon 6.71%, Secured Debt (Maturity - November 30, 2023)	1,555		1,570		1,420
Vistra Operations Company LLC	Electric Utilities	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - December 14, 2023)	1,965		1,977		1,895
Web.Com Group, Inc.	Internet Software and Services	LIBOR (3 months) + 3.75%, Current Coupon 6.17%, Secured Debt (Maturity - October 10, 2025)	1,000		1,000		965
West Corporation	Diversified Telecommunication Services	LIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 10, 2024)	647		646		593
		LIBOR (3 months) + 4.00%, Current Coupon 6.53%, Secured Debt (Maturity - October 10, 2024)	1,021		1,011		941
			1,668		1,657		1,534
WideOpenWest Finance, LLC	Diversified Telecommunication Services	LIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - August 18, 2023)	3,461		3,471		3,215
William Morris Endeavor Entertainment, LLC	Recreation Facilities and Services	LIBOR (3 months) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - May 16, 2025)	638		608		608
Zekelman Industries, Inc	Manufactured Goods	LIBOR (1 month) + 2.25%, Current Coupon 4.86%, Secured Debt (Maturity - June 14, 2021)	1,000		985		970
Total Loan Portfolio			$	165,025	$	164,570	$	157,923

For the three months ended March 31, 2019 and 2018, the Company ~~accrued~~recognized approximately $546,000 and $525,000, respectively, of dividend income in respect of its investment in HMS-ORIX.

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

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

As of March 31, 2018 As of December 31, 2017
Assets
Portfolio investments at fair value (amortized cost: $140,265 and $139,017 as of March 31, 2018 and December 31, 2017, respectively) $ 140,200
$ 139,012
Cash and cash equivalents 4,943
2,681
Interest receivable 314
306
Deferred financing costs, net 793
890
Other assets —
15
Total assets $ 146,250
$ 142,904
Liabilities
Credit facilities payable $ 91,300
$ 86,500
Payable for securities purchased 3,020
5,268
Distributions payable 875
—
Accounts payable and accrued expenses 80
64
Total liabilities 95,275
91,832
Net assets
Members’ equity 50,975
51,072
Total net assets 50,975
51,072
Total liabilities and net assets $ 146,250
$ 142,904



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

	As of March 31, 2019		As of December 31, 2018
Assets
Portfolio investments at fair value (amortized cost: $169,827 and $164,570 as of March 31, 2019 and December 31, 2018, respectively)	$	167,819	$	157,923
Cash and cash equivalents	7,440		3,873
Receivable for securities sold	—		—
Interest receivable	297		197
Deferred financing costs, net	400		497
Other assets	4		30
Total assets	$	175,960	$	162,520
Liabilities
Credit facilities payable	$	123,130	$	98,818
Payable for securities purchased	1,987		18,442
Distributions payable	911		902
Accounts payable and accrued expenses	996		439
Total liabilities	127,024		118,601
Net assets
Members’ equity	48,936		43,919
Total net assets	48,936		43,919
Total liabilities and net assets	$	175,960	$	162,520

										HMS-ORIX SLF LLC
Statement of Operations (Unaudited)
Statement of Operations				Statement of Operations
(dollars in thousands)
				Three Months Ended
	Three Months Ended March 31, 2018			March 31, 2019			March 31, 2018
Investment income
Interest income	$	1,734		$	2,548		$	1,734
Dividend income	—			—			—
Fee income	—			—			—
Other income	—			—			—
Total investment income	1,734			2,548			1,734
Expenses
Interest expense	850			1,247			850
Other expenses	—			—			—
General and administrative expenses	21			11			21
Total expenses	871			1,258			871
Net investment income	863			1,290			863
Net realized (loss) from investments	(26		)
Net realized loss from investments				(1		)	(26		)
Net realized income	837			1,289			837
Net change in unrealized (depreciation) on investments	(59		)
Net change in unrealized appreciation (depreciation) on investments				4,639			(59		)
Net increase in net assets resulting from operations	$	778		$	5,928		$	778

Note 5 — Borrowings

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

On March 6, 2017, the Company entered into an amended and restated senior secured revolving credit agreement (the ~~“EverBank~~“TIAA Credit Facility”) with TIAA, FSB (formerly known as EverBank Commercial Finance, Inc. prior to June 18, 2018) (“~~EverBank”~~TIAA Bank”), as administrative agent, and with ~~Everbank~~TIAA Bank and other financial institutions as lender. The ~~EverBank~~TIAA Credit Facility, as amended, features aggregate revolver commitments of $120.0 ~~million.~~million and will mature March 6, 2020, with two one-year extension options, subject to lender approval. Borrowings under the ~~EverBank~~TIAA Credit Facility bear interest, subject to the Company’s election, on a per annum basis equal to (i) the adjusted ~~London Interbank Offered Rate (“LIBOR”)~~LIBOR rate plus 2.75% or (ii) the base rate plus 1.75%. The base rate is defined as the higher of (a) the prime rate, (b) the Federal Funds Rate (as defined in the credit agreement) plus 0.5% or (c) the adjusted LIBOR rate plus 1.0%. The adjusted LIBOR rate is defined in the credit agreement for the ~~EverBank~~TIAA Credit Facility as the one-month LIBOR rate plus ~~such amount as adjusted~~an adjustment for statutory reserve requirements for Eurocurrency ~~liabilities.~~liabilities as described in the credit agreement. As of March 31, ~~2018,~~2019, the one-month LIBOR rate was ~~1.88%~~2.49%. Additionally, the Company pays an annual unused commitment fee of ~~0.300%~~0.30% on the unused revolver commitments if more than 50% of the revolver commitments are being used and an annual unused commitment fee of 0.625% on the unused revolver commitments if less than 50% of the revolver commitments are being used. As of March 31, ~~2018,~~2019, the Company was not aware of any instances of noncompliance with covenants related to the ~~EverBank~~TIAA Credit Facility.

On May 18, 2015, HMS Funding entered into an amended and restated credit agreement (the “Deutsche Bank Credit Facility”) among HMS Funding, as borrower, the Company, as equityholder and as servicer, Deutsche Bank AG, New York Branch (“Deutsche Bank”), as administrative agent, the financial institutions party thereto as lenders (together with Deutsche Bank, the “HMS Funding Lenders”), and U.S. Bank National Association, as collateral agent and collateral custodian. ~~The~~As of March 31, 2019, the Deutsche Bank Credit Facility, as amended, ~~provides~~provided a borrowing capacity of $450.0 million, with an accordion provision allowing increases in aggregate commitments, not to exceed $550.0 ~~million.~~million, with lender consent. Under the Deutsche Bank Credit Facility, interest is calculated as the sum of the index plus the applicable margin of 2.35%. The index will be equal to one-month LIBOR, or, in the event that

LIBOR is not reasonably available, the higher of Deutsche Bank’s base commercial lending rate and the interest rate equal to 0.5% above the federal funds rate. As of March 31, ~~2018,~~2019, the one-month LIBOR ~~rate~~ was ~~1.88%~~2.49%. The Deutsche Bank Credit Facility provides for a revolving period until November 20, 2020, unless otherwise extended with the consent of the HMS Funding Lenders. The amortization period begins the day after the last day of the revolving period and ends on November 20, 2022, the maturity date. During the amortization period, the applicable margin will increase by 0.25%. During the revolving period, HMS Funding will pay a utilization fee equal to 2.50% of the undrawn amount of the required utilization, which is 75% of the loan commitment amount. HMS Funding will incur an undrawn fee equal to 0.40% per annum of the difference between the aggregate commitments and the outstanding advances under the facility, provided that the undrawn fee relating to any utilization shortfall will not be payable to the extent that the utilization fee relating to such utilization shortfall is incurred. Additionally, ~~per~~under the terms of a fee letter executed on November 20, 2017, HMS Funding pays Deutsche Bank an administrative agent fee of 0.25% per annum of the aggregate revolver ~~commitments.As~~commitments. As of March 31, ~~2018,~~2019, the Company was not aware of any instances of noncompliance with covenants related to the Deutsche Bank Credit Facility.

As of March 31, ~~2018,~~2019, the Company had borrowings of $120.0 million outstanding on the ~~EverBank~~TIAA Credit Facility and had borrowings of ~~$338.0~~$380.0 million outstanding on the Deutsche Bank Credit Facility, both of which the Company estimated approximated fair value.

A summary of the Company’s significant contractual payment obligations for the repayment of outstanding borrowings at March 31, ~~2018~~2019 is as follows:

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



	Payments Due By Period (dollars in thousands)
	Total		Less than 1 year		1-3 years		3-5 years		After 5 years
TIAA Credit Facility ⁽¹⁾	$	120,000	$	120,000	$	—	$	—	$	—
Deutsche Bank Credit Facility ⁽²⁾	380,000		—		—		380,000		—
Total Credit Facilities	$	500,000	$	120,000	$	—	$	380,000	$	—


(1)	At March 31, ~~2018, $0.0 million was available~~2019, the Company had no availability under the ~~EverBank~~TIAA Credit Facility.


(2)	At March 31, ~~2018, $112.0~~2019, $70.0 million remained available under the Deutsche Bank Credit Facility; however, the Company’s borrowing ability is limited to the asset coverage ~~ratio~~ restrictions imposed by the 1940 Act, as discussed above.

Note 6 – Financial Highlights

The following is a schedule of financial highlights of the Company for the three months ended March 31, ~~2018~~2019 and ~~2017.~~2018.


Per Share Data:	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017			Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
NAV at beginning of period	$	8.15		$	8.15		$	7.96		$	8.15
Results from Operations
Net investment income ^{(1) (2)}	0.19			0.20			0.18			0.15
Net realized appreciation (depreciation) ^{(1) (2)}	(0.13		)	0.04
Net change in unrealized appreciation (depreciation) on investments^{(1) (2)}	0.13			(0.06		)
Net realized loss on investments ^{(1) (2)}							(0.09		)	(0.09		)
Net change in unrealized appreciation on investments^{(1) (2)}							0.15			0.13
Net increase in net assets resulting from operations	0.19			0.18			0.24			0.19
Stockholder distributions^{(1) (3)}
Distributions from net investment income ^{(1) (2)}	(0.17		)	(0.14		)	(0.17		)	(0.17		)
Distributions from realized appreciation ^{(1) (2)}	—			(0.03		)	—			—
Net decrease in net assets resulting from stockholder distributions	(0.17		)	(0.17		)	(0.17		)	(0.17		)
Capital share transactions
Issuance of common stock above NAV, net of offering costs ⁽¹⁾							—			—
Net increase in net assets resulting from capital share transactions							—			—
NAV at end of the period	$	8.17		$	8.16		$	8.03		$	8.17

Shares outstanding at end of period	79,201,065			75,668,707
Weighted average shares outstanding	79,846,665			74,853,781
Shares of common stock outstanding at end of period							78,547,196			79,201,065
Weighted average shares of common stock outstanding							78,819,746			79,846,665


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


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


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


	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017			Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
	(dollars in thousands)						(dollars in thousands)
NAV at end of period	$	647,066		$	617,309
Net assets at end of period							$	630,393		$	647,066
Average net assets	$	647,428		$	607,571		$	627,880		$	647,428
Average Credit Facilities borrowings	$	444,000		$	399,500		$	504,500		$	444,000

Ratios to average net assets:
Ratio of total expenses to average net assets⁽¹⁾	1.82		%	1.68		%	2.43		%	1.82		%
Ratio of net investment income to average net assets ⁽¹⁾	2.29		%	2.49		%	2.21		%	1.88		%
Portfolio turnover ratio	15.07		%	14.34		%	3.58		%	15.07		%
Total return⁽²⁾	2.33		%	2.21		%	3.02		%	2.33		%

(1)

For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the Advisers did not waive base management fees ~~but waived~~or subordinated incentive fees but waived reimbursement of ~~approximately $15,000 and $1.5 million, respectively, and~~ internal administrative services expenses of approximately ~~$804,000~~$758,000 and ~~$661,000,~~$804,000, respectively. The ratio is calculated by reducing the expenses to reflect the waiver of ~~expenses and~~ reimbursement of internal administrative services expenses in both periods presented. Excluding interest expense, the ratio of total expenses to average net assets for the three months ended March 31, 2019 and 2018 was 1.30% and ~~March 31, 2017 was~~ 1.03% ~~and 1.02%~~, respectively. See Note 10 -— Related Party Transactions and Arrangements for further discussion of fee waivers provided by the Advisers.


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

Note 7 – Stockholder Distributions

The following table reflects the cash distributions per share that the Company declared on its common stock during the three months ended March 31, ~~2018~~2019 and ~~2017~~2018 (dollars in thousands except per share amounts).


	Distributions				Distributions
	Per Share		Amount		Per Share		Amount
2019
Three months ended March 31, 2019					$	0.17	$	13,606
2018
Three months ended March 31, 2018	$	0.17	$	13,803	$	0.17	$	13,803
2017
Three months ended March 31, 2017	$	0.17	$	12,922

On March ~~22, 2018,~~26, 2019, with the authorization of the Company’s board of directors, the Company declared distributions to its stockholders for the period of April ~~2018~~2019 through June ~~2018.~~2019. These distributions have been, or will be, calculated based on stockholders of record each day from April 1, ~~2018~~2019 through June 30, ~~2018~~2019 in an amount equal to $0.00191781 per share, per day. Distributions are paid on the first business day following the completion of each month to which they relate.

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

The following table reflects the sources of the cash distributions that the Company declared and, in some instances, paid on its common stock during the three months ended March 31, ~~2018~~2019 and ~~2017.~~2018.


	Three Months Ended March 31, 2018				Three Months Ended March 31, 2017				Three Months Ended March 31, 2019				Three Months Ended March 31, 2018
	(dollars in thousands)								(dollars in thousands)
Source of Distribution	Distribution Amount		Percentage		Distribution Amount		Percentage		Distribution Amount		Percentage		Distribution Amount		Percentage
Net realized income from operations (before waiver of incentive fees)	$	4,938	35.8	%	$	12,922	100.0	%	$	6,757	49.7	%	$	4,953	35.9	%
Waiver of incentive fees	15		0.1		—		—
Distributions in excess of net realized income from operations ⁽¹⁾	8,850		64.1		—		—		6,849		50.3		8,850		64.1
Total	$	13,803	100.0	%	$	12,922	100.0	%	$	13,606	100.0	%	$	13,803	100.0	%


(1)	Includes adjustments made to ~~GAAP basis~~GAAP-basis net investment income to arrive at taxable income available for distributions. See Note 8 — Taxable Incomefor the sources of the Company’s cash distributions on a tax basis.

The Company may fund its cash distributions from all sources of funds legally available, including stock offering proceeds, if any, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds

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

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

Note 8 – Taxable Income

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

The Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes, which provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions

are “more-likely-than-not” to be sustained by the applicable tax authority. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the Company’s financial statements is the largest benefit or expense that has a greater than 50% likelihood of being realized upon its ultimate settlement with the relevant tax authority. Positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits, if any, in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. Management has analyzed the Company’s tax positions, and has concluded that there were no material uncertain income tax positions through March 31, ~~2018.~~2019. The Company identifies its major tax jurisdiction as the United States, and the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months. Tax returns for the ~~2014~~2015 through 2017 taxable years remain subject to examination by U.S. federal and most state tax authorities.

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

Listed below is a reconciliation of “Net increase (decrease) in net assets resulting from operations” to taxable income and to total distributions declared to common stockholders for the three months ended March 31, ~~2018~~2019 and ~~2017~~2018 (dollars in thousands).


	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017			Three Months Ended March 31, 2019			Three Months Ended March 31, 2018

Net increase (decrease) in net assets resulting from operations	$	15,557		$	13,266
Net increase in net assets resulting from operations							$	18,820		$	15,557
Net change in unrealized (appreciation) depreciation	(10,604		)	4,516			(12,063		)	(10,604		)
Income tax (benefit) provision	102			48
Pre-tax book (income) loss not consolidated for tax purposes	8,236			184
Income tax provision							58			102
Pre-tax book loss not consolidated for tax purposes							5,255			8,236
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates	39			392			224			39
Estimated taxable income⁽¹⁾	13,330			18,406			12,294			13,330

Taxable income earned in prior year and carried forward for distribution in current year	15,005			7,238			20,574			15,005

Taxable income earned prior to period end and carried forward for distribution next period	(19,289		)	(17,222		)	(23,935		)	(19,289		)
Dividend accrued as of period end and paid-in the following period	4,757			4,500			4,673			4,757
Taxable income earned to be carried forward	(14,532		)	(12,722		)	$	(19,262	)	$	(14,532	)

Total distributions accrued or paid to common stockholders	$	13,803		$	12,922		$	13,606		$	13,803


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

The income tax expense, or benefit, and the related tax assets and liabilities generated by HMS Equity Holding and HMS Equity Holding II, if any, are reflected in the Company’s Condensed Consolidated ~~Statement of Operations.~~Financial Statements. For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the Company recognized a net income tax (benefit) provision of ~~$102,000~~$58,000 and ~~$48,000,~~$102,000, respectively, related to deferred taxes (benefit) of $1.1 million and $4.3 million, ~~and $261,000,~~ respectively, and other taxes (benefit) of ~~$102,000~~$58,000 and ~~$48,000,~~$102,000, respectively, offset by a valuation allowance of ~~$(4.3)~~$(1.1) million and ~~$(261,000),~~$(4.3) million, respectively. For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the other taxes (benefit) included ~~$102,000~~$58,000 and ~~$48,000,~~$102,000, respectively, related to accruals for state and other taxes.

As of March 31, 2019, the cost basis of the Company’s portfolio investments for tax purposes was $1.1 billion, with such investments having an estimated net unrealized depreciation of $3.3 million, composed of gross unrealized appreciation of $42.1 million and gross unrealized depreciation of $45.4 million. As of December 31, 2018, the cost basis of investments for tax purposes was $1.1 billion, with such investments having an estimated net unrealized depreciation of ~~$4.4~~$151 million, composed of gross unrealized appreciation of ~~$27.4~~$37.5 million and gross unrealized depreciation of $31.8 million. As of December 31, 2017, the cost basis of investments for tax purposes was $1.0 billion, with such investments having an estimated net unrealized depreciation of $14.9 million, composed of gross unrealized appreciation of $25.2 million and gross unrealized depreciation of $40.1$52.6 million.

The net deferred tax ~~asset~~assets at both March 31, ~~2018~~2019 and December 31, ~~2017~~2018 was $0, primarily related to loss carryforwards, timing differences in net unrealized depreciation of portfolio investments, and basis differences of portfolio investments held by HMS

Equity Holding and HMS Equity Holding II ~~which are “pass through” entities for tax purposes,~~ offset by a valuation allowance. Based on HMS Equity Holding’s and HMS Equity Holding II’s short operating history, management believes it is more likely than not that there will be inadequate profits in HMS Equity Holding and HMS Equity Holding II against which the deferred tax assets can be offset. Accordingly, the Company recorded a full valuation allowance against such deferred tax assets.

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


	March 31, 2018			December 31, 2017			March 31, 2019			December 31, 2018
Deferred tax assets:
Net operating loss carryforwards	$	1,576		$	1,901		$	1,632		$	1,861
Foreign tax credit carryforwards	10			10			10			10
Capital loss carryforwards	5,959			5,390			12,502			10,696
Net basis differences in portfolio investments	1,188			—			—			—
Net unrealized depreciation of portfolio investments	1,708			—			—			—
Total deferred tax assets	10,441			7,301			14,144			12,567
Deferred tax liabilities:
Net basis differences in portfolio investments	—			(703		)	(1,813		)	(1,540		)
Net unrealized appreciation of portfolio investments	(11		)	(426		)	(3,936		)	(3,693		)
Other	—			—			—			—
Total deferred tax liabilities	(11		)	(1,129		)	(5,749		)	(5,233		)
Valuation allowance	(10,430		)	(6,172		)	(8,395		)	(7,334		)
Total net deferred tax assets (liabilities)	$	—		$	—		$	—		$	—

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

For federal income tax purposes, the net operating loss carryforwards generated prior to December 31, 2017 expire in various taxable years from 2034 through 2037. Under the TCJA, any net operating losses generated in 2018 and future periods will have an indefinite carryforward. The net capital loss carryforwards of the Company expire in taxable years 2020 and 2023. The timing and manner in which HMS Equity Holding and HMS Equity Holding II will utilize any net loss carryforwards in such taxable years, or in total, may be limited in the future under the provisions of the Code.

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


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

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

The determination of the tax attributes of the Company’s distributions is made annually at the end of the Company’s taxable year based upon the Company’s taxable income for the full taxable year and distributions paid for the full taxable year. Therefore, a determination made on an interim basis may not be representative of the actual tax attributes of distributions for a full year. If the Company had determined the tax attributes of its distributions taxable year-to-date as of March 31, ~~2018,~~2019, 100% would be from its current and accumulated earnings and profits. However, there can be no certainty to stockholders that this determination is representative of what the actual tax attributes of the Company’s anticipated fiscal and taxable years ending December 31, ~~2018~~2019 distributions to stockholders will be. The actual tax characteristics of distributions to stockholders will be reported to the Internal Revenue Service and stockholders subject to information reporting shortly after the close of each calendar year on Form 1099-DIV.

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

Note 9 – Supplemental Cash Flow Disclosures

Listed below are the supplemental cash flow disclosures for the three months ended March 31, ~~2018~~2019 and ~~2017~~2018 (dollars in thousands):


Supplemental Disclosure of Cash Flow Information	Three Months Ended March 31, 2018		Three Months Ended March 31, 2017			Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Cash paid for interest	$	4,779	$	3,670		$	6,675	$	4,779
Cash paid for income taxes	463		268			924		463

Supplemental Disclosure of Non-Cash Flow Information
Stockholder distributions declared and unpaid	4,757		4,500			4,673		4,757
Stockholder distributions reinvested	6,929		6,618			6,366		6,929
Change in unpaid deferred offering costs	—		(12		)
Unpaid deferred financing costs	—		387			7		—
Unpaid sales commissions and dealer manager fee	—		150

Note 10 — Related Party Transactions and Arrangements

Advisory Agreements and Conditional Fee and Expense Reimbursement Waivers

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

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

~~The Company and the~~ Advisers entered into conditional income incentive fee waiver agreements (the “2016-2018 Conditional Income Incentive Fee Waiver Agreements”), most recently on ~~May~~March 4, ~~2018,~~2019, pursuant to which, for a period from January 1, 2016 through ~~March~~December 31, 2018, the Advisers ~~could~~would waive payments in respect of the “subordinated incentive fee on income,” as such term is defined in the Investment Advisory Agreement, upon the occurrence of any event that, in the Advisers’ sole discretion, causes such waiver to be deemed necessary. The 2016-2018 Conditional Income Incentive Fee Waiver Agreements may require the Company to repay ~~the Advisers for previously waived reimbursement of Expense Support Payments or waived~~ base management fees or incentive fees previously waived by the Advisers under certain circumstances and to the extent eligible for repayment.

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


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


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

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

For each of the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the Company incurred base management fees of approximately $5.7 million and ~~$5.2~~subordinated incentive fees on income of $1.4 million ~~respectively,~~ and ~~the Advisers waived no base management fees in either period.~~$0, respectively. For each of the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the Company ~~incurred no~~did not incur any capital gains incentive ~~fees in either period, and incurred subordinated incentive fees on income of approximately $15,000 and $1.5 million, respectively, which were fully waived by the Advisers.~~fees.

For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the Company did not record an accrual for any previously waived fees. Any future reimbursement of previously waived fees to the Advisers will not be accrued until the reimbursement of the waived fees becomes probable and estimable, which will be upon approval of the Company’s board of directors. To date, none of the previously waived fees has been approved by the Company’s board of directors for reimbursement.

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


	Management Fee⁽¹⁾				Subordinated Incentive Fee⁽¹⁾				Capital Gain Incentive Fee ⁽¹⁾				Expense Support ⁽¹⁾							Management Fee⁽¹⁾				Subordinated Incentive Fee⁽¹⁾
Quarter Ended	Waivers		Repaid to Adviser ₍₂₎		Waivers		Repaid to Adviser₍₂₎		Waivers		Repaid to Adviser₍₂₎		Payments		Repaid to Adviser ₍₂₎		Operating Expense Ratio ⁽³⁾	Annualized Distribution Rate ⁽⁴⁾	Eligible to be Repaid Through ⁽⁵⁾	Waivers		Repaid to Adviser⁽²⁾		Waivers		Repaid to Adviser⁽²⁾		Operating Expense Ratio ⁽³⁾	Annualized Distribution Rate ⁽⁴⁾	Eligible to be Repaid Through ⁽⁵⁾
6/30/2015	$	—	$	—	$	930	$	—	$	—	$	—	$	—	$	—	1.69%	$0.70	6/30/2018
9/30/2015	$	—	$	—	$	155	$	—	$	—	$	—	$	—	$	—	2.11%	$0.70	9/30/2018
12/31/2015	$	—	$	—	$	1,159	$	—	$	—	$	—	$	—	$	—	2.27%	$0.70	12/31/2018
3/31/2016	$	—	$	—	$	493	$	—	$	—	$	—	$	—	$	—	1.83%	$0.70	3/31/2019
6/30/2016	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	1.76%	$0.70	6/30/2019	$	—	$	—	$	—	$	—	1.76%	$0.70	6/30/2019
9/30/2016	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	1.73%	$0.70	9/30/2019	$	—	$	—	$	—	$	—	1.73%	$0.70	9/30/2019
12/31/2016	$	—	$	—	$	1,196	$	—	$	—	$	—	$	—	$	—	1.68%	$0.70	12/31/2019	$	—	$	—	$	26	$	—	1.68%	$0.70	12/31/2019
3/31/2017	$	—	$	—	$	1,495	$	—	$	—	$	—	$	—	$	—	1.68%	$0.70	3/31/2020	$	—	$	—	$	1,396	$	—	1.68%	$0.70	3/31/2020
6/30/2017	$	—	$	—	$	823	$	—	$	—	$	—	$	—	$	—	1.67%	$0.70	6/30/2020	$	—	$	—	$	246	$	—	1.67%	$0.70	6/30/2020
9/30/2017	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	1.91%	$0.70	9/30/2020	$	—	$	—	$	—	$	—	1.91%	$0.70	9/30/2020
12/31/2017	$	—	$	—	$	711	$	—	$	—	$	—	$	—	$	—	1.82%	$0.70	12/31/2020	$	—	$	—	$	—	$	—	1.82%	$0.70	12/31/2020
3/31/2018	$	—	$	—	$	15	$	—	$	—	$	—	$	—	$	—	1.80%	$0.70	3/31/2021	$	—	$	—	$	—	$	—	1.80%	$0.70	3/31/2021
6/30/2018																				$	—	$	—	$	—	$	—	1.96%	$0.70	6/30/2021
9/30/2018																				$	—	$	—	$	2,535	$	—	2.01%	$0.70	9/30/2021
12/31/2018																				$	—	$	—	$	798	$	—	2.32%	$0.70	12/31/2021


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

(2)

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


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


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


(5)	Prior to ~~June 30, 2015,~~March 31, 2016, the Advisers waived total management fees of $2.8 million, total subordinated incentive fees of ~~$932,000~~$2.5 million and total capital gain incentive fees of $8,000. Due to the passage of time, such waived fees are not eligible for repayment under the applicable fee waiver agreements.

Pursuant to the Investment Advisory Agreement and Sub-Advisory Agreement, the Company is required to pay or reimburse the Advisers for administrative services expenses, which include all costs and expenses related to the Company’s day-to-day administration and management not related to advisory services, whether such administrative services were performed by a third party service provider or affiliates of the Advisers (“Internal Administrative Services”). The Advisers do not earn any profit under their provision of administrative services to the Company. For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the Company incurred, and the Advisers waived the ~~reimbursement~~reimbursements of, Internal Administrative Services expenses of approximately ~~$804,000~~$758,000 and ~~$661,000,~~$804,000, respectively. The Company and the Advisers entered into an expense support and conditional reimbursement agreement, as amended from time to time, which extends the period for waiver of reimbursement of Internal Administrative Services expenses accrued pursuant to the Investment Advisory Agreement and the Sub-Advisory Agreement through June 30, ~~2018.~~2019. Since inception, the Advisers waived the reimbursement of total Internal Administrative Services expenses of ~~$11.1~~$13.8 million. Waived Internal Administrative Services expenses are not subject to future reimbursement.

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


	Incurred				Unpaid as of				Incurred				Unpaid as of
	Three Months Ended March 31,				March 31, 2018		December 31, 2017		Three Months Ended March 31,				March 31, 2019		December 31, 2018
Type and Recipient	2018		2017						2019		2018
Incentive Fees on Income⁽¹⁾ - the Adviser, Sub-Adviser	$	15	$	—	$	—	$	—
Offering Costs - the Adviser, Sub-Adviser	103		387		—		—		$	95	$	103	$	—	$	—
Other ⁽²⁾ - the Adviser	176		202		51		59		204		176		105		57
Selling Commissions - Dealer Manager	—		1,060		—		—		—		—		—		—
Dealer Manager Fee - Dealer Manager	—		558		—		—		—		—		—		—
Due to Affiliates					$	51	$	59					$	105	$	57

Base Management Fees⁽¹⁾ - the Adviser, Sub-Adviser	$	5,694	$	5,150	$	5,694	$	5,682
Base Management Fees- the Adviser, Sub-Adviser									5,726		5,694		$	5,726	$	5,854
Incentive Fees on Income - the Adviser, Sub-Adviser⁽¹⁾									1,399		—		1,399		—
Base Management and Incentive Fees Payable													$	7,125	$	5,854


(1)	Net of amounts waived by the Advisers.


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

Offering Costs

In accordance with the Investment Advisory Agreement and the Sub-Advisory Agreement, the Company reimburses the Advisers for any offering costs that are paid on the Company’s behalf, which consist of, among other costs, actual legal, accounting, bona fide out-of-pocket itemized and detailed due diligence costs, printing, filing fees, transfer agent costs, postage, escrow fees, advertising and sales literature and other costs incurred in connection with an offering of the Company including the Company’s distribution reinvestment plan. Pursuant to the terms of the Investment Advisory Agreement and the Sub-Advisory Agreement, the Company expects to reimburse the Advisers for such costs incurred on the Company’s behalf on a monthly basis, up to a maximum aggregate amount of 1.5% of the gross stock offering proceeds. The Advisers are responsible for the payment of offering costs to the extent they exceed 1.5% of the aggregate gross stock offering proceeds.

As of March 31, ~~2018,~~2019, the Company has reimbursed the Advisers approximately ~~$11.9~~$12.3 million since inception for offering costs. As of March 31, ~~2018,~~2019, the Advisers carried a balance of approximately ~~$1.3 million~~$993,000 for offering costs incurred on the Company’s behalf, net of reimbursement payments from the Company.

Note 11 – Share Repurchase Plan

Since inception of the share repurchase program in 2015, the Company has funded the repurchase of ~~$46.4~~$77.8 million in ~~shares.~~shares of common stock. For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, the Company funded ~~$9.4~~$6.6 million and ~~$5.1~~$9.4 million, respectively, for shares of common stock tendered for repurchase under the plan approved by the board of directors. ~~Since inception of the share repurchase program, the Company has funded all redemption requests validly tendered and not withdrawn.~~


For the Quarter Ended	Repurchase Date	Shares Repurchased	Percentage of Shares Tendered that were Repurchased	Repurchase Price per Share		Aggregate Consideration for Repurchased Shares		Repurchase Date	Shares Repurchased	Percentage of Shares Tendered that were Repurchased	Repurchase Price per Share		Aggregate Consideration for Repurchased Shares
March 31, 2018	March 22, 2018	1,147,067.15	100%	$	8.20	$	9,405,951
March 31, 2019								February 28, 2019	820,174.35	56.1%	$	7.99	$	6,553,193

Note 12 – Commitments and Contingencies

AtAs of March 31, ~~2018,~~2019, the Company had a total of approximately ~~$50.5~~$45.1 million in outstanding commitments comprising (i) 33 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. The Company recognized unrealized ~~depreciation~~appreciation of approximately ~~$18,000~~$265,000 on the outstanding unfunded loan commitments and no unrealized appreciation or depreciation on the outstanding unfunded capital commitments during the three months ended March 31, ~~2018. At~~2019. As of December 31, ~~2017,~~2018, the Company had a total of approximately ~~$45.4~~$62.5 million in outstanding commitments comprising (i) 2836 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. The Company recognized unrealized ~~appreciation~~depreciation of ~~$14,000~~$132,000 on the outstanding unfunded loan commitments and no unrealized appreciation or depreciation on the outstanding unfunded capital commitments during the year ended December 31, ~~2017.~~2018.



	Commitments and Contingencies
	(dollars in thousands)
	March 31, 2019		December 31, 2018
Unfunded Loan Commitments
Adams Publishing Group, LLC	$	985	$	1,735
American Nuts, LLC	281		1,266
Apex Linen Services, Inc.	403		403
Arcus Hunting, LLC	1,374		904
ASC Ortho Management Company, LLC	750		750
BarFly Ventures, LLC	—		123
BBB Tank Services	100		200
BigName Holdings, LLC	29		29
Boccella Precast Products, LLC	500		500
Centre Technologies Holdings, LLC	600		—
Chamberlin HoldCo, LLC	400		400
Charps, LLC	1,000		1,000
Clad-Rex Steel, LLC	—		100
CTVSH, PLLC	200		200
Direct Marketing Solutions, Inc.	400		400
DTE Enterprises, LLC	750		750
Dynamic Communities, LLC	250		250
Gamber-Johnson Holdings, LLC	300		300

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

Apex Linen Services, Inc. $ 403
$ 403
Arcus Hunting, LLC 1,566
976
BarFly Ventures, LLC 613
613
BBB Tank Services 20

—
BigName Holdings, LLC 101

101
Boccella Precast Products, LLC 285
500
CDHA Management, LLC 2,061
2,343
Chamberlin HoldCo, LLC 400

—
Charps, LLC 1,000
1,000
Clad-Rex Steel, LLC 100

100
CTVSH, PLLC 200

200
Datacom, LLC 5
25
Direct Marketing Solutions, Inc. 400

—
Felix Investments Holdings II LLC 1,667

1,667
Gamber-Johnson Holdings, LLC 300
300
GST Autoleather Inc. —
1,281
Guerdon Modular Holdings, Inc. 300
400
Hawk Ridge Systems, LLC 400
400
Hojeij Branded Foods, Inc. 1,923
1,923
Hostway Corporation 7

7
Hunter Defense Technologies, Inc. 2,832

—
HW Temps LLC 200
200
LaMi Products, LLC 294
294
Market Force Information, Inc. 400

400
Meisler Operating, LLC 400

400
Mystic Logistics Holdings, LLC 200
200
NexRev, LLC 1,000

—
NNE Partners, LLC 2,056

5,542
NuStep, LLC 300

300
Permian Holdco 2, Inc. —
97
PPC/Shift, LLC 500
500
Radiology Partners, Inc. 5,254

—
Resolute Industrial LLC 5,750

5,750
Wireless Vision Holdings, LLC 2,084

2,084
Unfunded Capital Commitments
Brightwood Capital Fund III, LP 1,000
1,000
Brightwood Capital Fund IV, LP 9,000
9,000
Copper Trail Energy Fund I LP 2,500
2,500
Freeport Financial Funds 4,941
4,941
Total $ 50,462
$ 45,447



	Commitments and Contingencies
	(dollars in thousands)
	March 31, 2019		December 31, 2018
Unfunded Loan Commitments
GRT Rubber Technologies, LLC	$	3,259	$	4,125
Guerdon Modular Holdings, Inc.	400		400
Hawk Ridge Systems, LLC	—		400
HDC/HW Intermediate Holdings, Inc.	180		180
Hoover Group, Inc.	1,450		2,375
HW Temps LLC	200		200
Implus Footcare, LLC	—		44
Independent Pet Partners Intermediate Holdings, LLC	12,888		22,244
Jacent Strategic Merchandising, LLC	441		—
KMC Acquisition, LLC	500		500
Laredo Energy VI, LP	1,750		—
Market Force Information, Inc.	260		350
Meisler Operating, LLC	400		400
Mystic Logistics Holdings, LLC	200		200
New Era Technology, Inc.	479		479
NexRev, LLC	1,000		1,000
NuStep, LLC	300		300
SI East , LLC	2,500		2,500
Tedder Acquisition, LLC	180		180
Volusion LLC	—		1,961
Wireless Vision Holdings, LLC	—		693
Unfunded Capital Commitments
Brightwood Capital Fund III, LP	1,000		1,000
Brightwood Capital Fund IV, LP	5,000		8,000
Copper Trail Energy Fund I LP	1,694		1,754
Freeport Financial Funds	2,744		3,942
Total	$	45,147	$	62,537

Note 13 – Subsequent Events

On May 4, 2018, the Company, the Adviser and the Sub-Adviser entered into a conditional income incentive fee agreement (the “First Quarter 2018 Fee Waiver Agreement”), pursuant to which, for a period from January 1, 2018 through March 31, 2018, the Advisers could waive the “subordinated incentive fee on income,” as such term is defined in the Investment Advisory Agreement, upon the occurrence of any event that, in the Advisers’ sole discretion, causes such waiver to be deemed necessary. The First Quarter 2018 Fee Waiver Agreement may require the Company to repay the Advisers for previously waived Expense Support Payments or waived base management fees or incentive fees under certain circumstances. The previously waived fees are potentially subject to repayment by the Company, if at all, within a period not to exceed three years from the date of each respective fee waiver.

On April ~~13, 2018,~~12, 2019, the Company filed a tender offer statement on Schedule TO with the SEC to commence an offer by the Company to purchase, as approved by its board of directors, ~~1,973,729.33~~an estimated 796,617.07 shares of the Company’s issued and outstanding common stock

~~par value $0.001 per share.~~ up to approximately $6.4 million. The offer is for cash at a purchase price equal to the NAV per share to be determined within 48 hours of the repurchase date.

On May 8, 2019, HMS-ORIX Holdings I LLC, a wholly owned subsidiary of HMS-ORIX, which holds all of the investments in broadly-syndicated loans held by HMS-ORIX, was merged (the “HMS-ORIX Holdings Merger”) into Mariner CLO 7, Ltd., an exempted company incorporated under the laws of the Cayman Islands (“Mariner CLO”). In connection with the HMS-ORIX Holdings Merger, HMS-ORIX made certain distributions to its members. The Company used the cash proceeds it received from the HMS-ORIX Holdings Merger to purchase an aggregate principal amount of approximately $25.9 million of the “Subordinated Notes” due in 2032 issued by Mariner CLO in connection with an offering of $405.9 million aggregate principal amount of notes (the “CLO Offering”). The CLO Offering’s Subordinated Notes are unsecured obligations of Mariner CLO, junior to the secured notes, and distributions to the holders of the Subordinated Notes will be made solely from distributions on the collateral held by Mariner CLO after all other payments required to be made to the holders of the secured notes have been made. The collateral for the notes issued by the Mariner CLO consists primarily of senior secured floating rate leveraged loans made to corporate and other business entities.

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

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

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

Forward-Looking Statements

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

our future operating results;

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

the impact of the investments that we expect to make;

the ability of our portfolio companies to achieve their objectives;

our expected financings and investments;

the adequacy of our cash resources and working capital;

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

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

the impact of increased competition;

our contractual arrangements and relationships with third parties;

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

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

our ability to make distributions to our stockholders;

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

the impact of future acquisitions and divestitures.

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

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

changes in the economy;

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

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

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

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

OVERVIEW

We are a specialty finance company sponsored by Hines Interests Limited Partnership (“Hines”) that makes debt and equity investments in middle market (“Middle Market”) companies, which we define as companies with annual revenues generally between $10 million and $3 billion and in lower middle market (“LMM”) companies, which we define as companies with annual revenues generally between $10 million and $150 million. We are an externally managed, non-diversified closed-end management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). We are, therefore, required to comply with certain regulatory requirements. We have elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”), under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

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

We previously registered for sale up to 150,000,000 shares of common stock pursuant to a registration statement on Form N-2 (File No. 333-178548) which was initially declared effective by the SEC on June 4, 2012 (the “Initial Offering”). The Initial Offering terminated on December 1, 2015. We raised approximately $601.2 million in the Initial Offering, including proceeds from the dividend reinvestment plan of approximately $22.0 million. We also registered for sale up to $1,500,000,000 worth of shares of common stock (the “Offering”) pursuant to a new registration statement on Form N-2 (File No. 333-204659), as amended. With the approval of our board of directors, we closed the Offering to new investors effective September 30, 2017. Through March 31, ~~2018,~~2019, we raised approximately ~~$191.0~~$217.6 million in the Offering, including proceeds from the distribution reinvestment plan of approximately ~~$59.3~~$85.9 million.

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

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

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

may otherwise be prohibited under Section 57(a)(4) of the 1940 Act. In addition, we may continue to co-invest with Main Street and/or its affiliates in syndicated deals and secondary loan market purchases in accordance with applicable regulatory guidance or interpretations where price is the only negotiated point.

As of March 31, ~~2018,~~2019, we had investments in 5144 Middle Market debt investments, 4049 Private Loan debt investments, 3138 LMM debt investments, 3240 LMM equity investments, ~~five~~six Middle Market equity investments, 1316 Private Loan equity investments and ~~seven~~eight Other Portfolio investments with an aggregate fair value of approximately ~~$1,067.6~~$1,110.1 million, a cost basis of approximately ~~$1,071.9~~$1,113.5 million and a weighted average effective annual yield of approximately ~~8.9%~~9.6%. The weighted average annual yield was

calculated using the effective interest rates for all investments at March 31, ~~2018,~~2019, including accretion of original issue discount and amortization of premium to par value, the amortization of fees received in connection with transactions, and assumes zero yield for investments on non-accrual status. Approximately ~~82.6%~~80.1% and ~~9.2%~~8.8% of our total portfolio investments (at fair value, excluding our Other Portfolio investments) were secured by first priority liens and second priority liens, respectively, on portfolio company assets ~~respectively,~~ with the remainder in unsecured debt investments and equity investments.

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

Investment Income

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

Expenses

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

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



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



●		cost of fidelity bond, directors and officers/errors and omissions liability insurance and other insurance premiums;
●		direct costs such as printing of stockholder reports and advertising or sales materials, mailing, long distance telephone, and staff;
●		fees and expenses associated with independent audits and outside legal costs, including compliance with the Sarbanes-Oxley Act of 2002, the 1940 Act, and other applicable federal and state securities laws and regulations;
●		costs associated with our reporting and compliance obligations under the 1940 Act and other applicable federal and state securities laws and regulations;



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

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

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

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

CRITICAL ACCOUNTING POLICIES

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

Basis of Presentation and Consolidation

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

PORTFOLIO INVESTMENT COMPOSITION

Our Middle Market portfolio investments primarily consist of direct or secondary purchases of interest-bearing debt securities in companies that are generally larger in size than the LMM companies included in our LMM portfolio. While our Middle Market debt investments are generally secured by a first priority lien, ~~16.3%~~16.5% of the fair value of our Middle Market portfolio, as of March 31, 2019, is secured by second priority liens.

~~Our current~~As of March 31, 2019, LMM portfolio consists of debt investments secured by a first priority lien ~~(64.4%~~(61.8% of the total fair value of the LMM portfolio) on the assets of the portfolio companies and equity investments ~~(35.6%~~(38.2% of the total fair value of the LMM portfolio) in privately held LMM ~~companies as of March 31, 2018.~~companies. The LMM debt investments generally mature between five and seven years

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

~~Our~~As of March 31, 2019, Private Loan portfolio primarily consists of debt investments secured by first and second priority liens ~~(91.2%~~(87.5% and ~~3.4%~~6.0% of the total fair value of the Private Loan portfolio, respectively) on the assets of the portfolio companies, unsecured debt investments ~~(2.9%~~(2.6% of the total fair value of the Private Loan portfolio) and equity investments ~~(2.5%~~(3.9% of the total fair value of the Private Loan portfolio) in Private Loan ~~companies as of March 31, 2018.~~companies. The Private Loan debt investments typically have stated terms between three and seven years from the original investment date. The Private Loan equity investments represent an equity position or the right to acquire an equity position through warrants.

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

During the three months ended March 31, ~~2018,~~2019, we funded investment purchases of approximately ~~$181.8~~$34.2 million and had ~~six investments~~one investment under contract to purchase as of March 31, ~~2018~~2019 for an aggregate purchase price of approximately ~~$19.4~~$1.8 million, which settled or wewas scheduled to settle after March 31, ~~2018.~~2019. We also received proceeds from sales and repayments of existing portfolio investments of approximately ~~$133.0~~$39.0 million, including ~~$91.6~~$24.9 million in sales. Additionally, we had ~~four investments~~one investment under contract to sell as of March 31, ~~2018,~~2019, for approximately ~~$28.6 million,~~$809,000, which represented the contract sales price. The combined result of these transactions ~~increased~~decreased our portfolio, on a cost basis, by approximately ~~$7.6~~$8.2 million, or 0.7%, and the number of portfolio investments by ~~three~~1 or ~~1.7%~~0.5%, compared to the portfolio as of December 31, ~~2017.~~2018. As of March 31, ~~2018,~~2019, the largest investment in an individual portfolio company represented approximately ~~2.9%~~2.6% of our portfolio’s fair value, with ~~the~~ remaining investments in anany individual portfolio company ranging from 0.0% to ~~2.1%~~2.3%. The average investment in our portfolio is approximately ~~$6.0~~$5.5 million or ~~0.6%~~0.5% of ~~the~~our total ~~portfolio.~~portfolio as of March 31, 2019. Our portfolio ~~is broadened~~extends across individual portfolio investments, geographic regions, and industries. Further, our total portfolio’s investment composition (excluding our Other Portfolio investments) at fair value ~~is comprised of 82.6%~~comprises 80.1% first lien debt securities and ~~9.2%~~8.8% second lien debt securities, with the remainder in unsecured debt investments and equity investments. First lien debt securities have priority over subordinated debt owed by the issuer with respect to the collateral pledged as security for the loan. Due to the relative priority of payment of first lien investments, these generally have lower yields than lower priority, less secured investments.

During the three months ended March 31, ~~2017,~~2018, we made investment purchases of approximately ~~$110.9~~$181.8 million and had ~~one investment~~six investments under contract to purchase as of March 31, ~~2017~~2018 for an aggregate purchase price of approximately ~~$7.4~~$19.4 million, which settled after March 31, ~~2017.~~2018. We also received proceeds from sales and repayments of existing portfolio investments of approximately ~~$137.8~~$133.0 million including ~~$9.7~~$91.6 million in sales and had ~~two~~four investments under contract to sell as of March 31, ~~2017~~2018 for approximately ~~$8.2~~$28.6 million, which represented the contract sales price.

The result of these transactions further diversified our geographic and industry concentrations and based upon our investment rating system, which is described further below, the weighted average rating of our LMM was approximately ~~2.6 and 2.7~~2.5 as of both March 31, ~~2018~~2019 and December 31, ~~2017, respectively.~~2018. See “Portfolio Asset Quality” below for a description of the system used to rate our investments. Lastly, the overall weighted average effective yield on our investment portfolio ~~remained at 8.9%~~increased from 9.5% as of December 31, ~~2017 and~~2018 to 9.6% as of March 31, ~~2018.~~2019.

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

March 31, 2018 December 31, 2017
Cost: LMM Private Loan Middle Market Total LMM Private Loan Middle Market Total
First Lien Secured Debt 69.4 % 91.0 % 83.0 % 83.8 % 69.8 % 92.5 % 83.1 % 84.3 %
Second Lien Secured Debt —
3.3
15.7
9.1
—
1.5
16.2
9.6
Unsecured Debt —
2.9
0.2
1.1
—
3.3
0.1
1.1
Equity⁽¹⁾
29.8
2.6
1.1
5.8
29.2
2.5
0.6
4.8
Equity warrants 0.8
0.2
—
0.2
1.0
0.2
—
0.2
Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

~~(1) Includes our investment in HMS-ORIX.~~



	March 31, 2019								December 31, 2018
Cost:	LMM		Private Loan		Middle Market		Total		LMM		Private Loan		Middle Market		Total
First Lien Secured Debt	70.4	%	87.9	%	80.5	%	81.7	%	70.4	%	87.3	%	81.8	%	82.0	%
Second Lien Secured Debt	—		5.9		16.8		9.3		—		6.2		15.8		9.2
Unsecured Debt	—		2.6		0.4		1.2		—		2.6		0.2		1.1
Equity	29.0		3.4		2.3		7.7		28.9		3.7		2.2		7.5
Equity warrants	0.6		0.2		—		0.1		0.7		0.2		—		0.2
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

March 31, 2018 December 31, 2017
Fair Value: LMM Private Loan Middle Market Total LMM Private Loan Middle Market Total
First Lien Secured Debt 64.4 % 91.2 % 82.2 % 82.6 % 64.7 % 92.4 % 82.1 % 83.0 %
Second Lien Secured Debt —
3.4
16.3
9.2
—
1.5
17.0
9.8
Unsecured Debt —
2.9
0.2
1.1
—
3.4
0.1
1.1
Equity⁽¹⁾
34.9
2.3
1.3
6.9
34.3
2.5
0.8
5.9
Equity warrants 0.7
0.2
—
0.2
1.0
0.2
—
0.2
Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

~~(1) Includes our investment in HMS-ORIX.~~



	March 31, 2019								December 31, 2018
Fair Value:	LMM		Private Loan		Middle Market		Total		LMM		Private Loan		Middle Market		Total
First Lien Secured Debt	61.8	%	87.5	%	82.1	%	80.1	%	62.1	%	87.1	%	82.9	%	80.3	%
Second Lien Secured Debt	—		6.0		16.5		8.8		—		6.3		15.6		8.9
Unsecured Debt	—		2.6		0.4		1.2		—		2.5		0.2		1.1
Equity	37.7		3.7		1.0		9.7		37.4		3.9		1.3		9.5
Equity warrants	0.5		0.2		—		0.2		0.5		0.2		—		0.2
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

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

Investment in HMS-ORIX

We co-invest in broadly-syndicated loans with ~~ORIX Funds Corp. (“Orix”)~~Orix through our investment in HMS-ORIX, which is organized as a Delaware limited liability company. Pursuant to the terms of the limited liability company agreement and through representation on the HMS-ORIX Board of Managers, we and Orix each have 50% voting control of HMS-ORIX and together will agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. We do not ~~operationally~~have sole control of significant actions of HMS-ORIX, and, accordingly, we do not consolidate the operations of HMS-ORIX within ~~the~~our consolidated financial statements. As of March 31, ~~2018,~~2019, we and Orix have committed to provide, and have funded, an aggregate of $50.0 million of equity to HMS-ORIX, ~~with us providing~~ $30.0 million (60% of the equity) from us and ~~Orix providing~~ $20.0 million (40% of the equity). from Orix.

As of March 31, ~~2018~~2019 and December 31, ~~2017,~~2018, HMS-ORIX had total assets of ~~$146.3~~$176.0 million and ~~$142.9~~$162.5 million, respectively, and HMS-ORIX’s portfolio consisted of 78114 and 74107 broadly-syndicated loans, respectively, all of which were secured by first-priority liens, generally in industries similar to those in which we may directly invest. As of March 31, 2019, there were no loans in HMS-ORIX’s portfolio that were on non-accrual status.

On April 5, 2017, HMS-ORIX closed on a $100.0 million credit facility with Bank of America, N.A.(the “Initial HMS-ORIX Credit Facility”). The ~~facility has~~Initial HMS-ORIX Credit Facility had a maturity date of April 5, 2020, and borrowings under the facility ~~bear~~accrued interest at a rate equal to LIBOR plus 1.65% per annum.

On November 20, 2018, HMS-ORIX closed on a $170.0 million credit facility with Citibank, N.A. (the “Refinanced HMS-ORIX Credit Facility”). The proceeds from the Refinanced HMS-ORIX Credit Facility were used to pay off the outstanding balance on the Initial HMS-ORIX Credit Facility, which was subsequently terminated. The reinvestment period for the Refinanced HMS-ORIX Credit Facility is scheduled to expire on September 6, 2019, and the maturity date is nine months after expiration of the reinvestment period (unless terminated earlier pursuant to the terms of the Refinanced HMS-ORIX Credit Facility). Borrowings under the Refinanced HMS-ORIX Credit Facility bear interest at a rate equal to the three-month LIBOR plus 1.15%. As of March 31, ~~2018~~2019 and December 31, ~~2017, $91.3~~2018, $123.1 million and ~~$86.5~~$98.8 million, respectively, ~~was~~were outstanding under this facility. Borrowings under the facility are secured by substantially all of the assets of HMS-ORIX. If we were to include our pro-rata share of the borrowings under the HMS-ORIX credit facility as leverage on our balance sheet as of March 31, ~~2018,~~2019, our asset coverage ratio as of such date would have been ~~215%, assuming unfunded commitments are treated as senior securities.~~210%.

The following table presents a summary of HMS-ORIX’s portfolio as of March 31, ~~2018~~2019 and December 31, ~~2017~~2018 (dollars in thousands):


	As of March 31, 2018			As of December 31, 2017			As of March 31, 2019			As of December 31, 2018

Total debt investments ⁽¹⁾	$	140,212		$	138,908		$	170,325		$	165,025
Weighted average effective yield on loans⁽²⁾	5.26		%	4.95		%	5.91		%	5.82		%
Largest loan to a single borrower⁽¹⁾	$	3,487		$	3,496		$	3,452		$	3,461
Total of 10 largest loans to borrowers⁽¹⁾	$	30,812		$	30,790		$	30,228		$	30,430

(1) At principal amount.

The following table presents a listing of HMS-ORIX’s individual loan investments as of March 31, 2019:



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Acrisure, LLC	Insurance	LIBOR (2 months) + 4.25%, Current Coupon 6.88%, Secured Debt (Maturity - November 22, 2023)	$	2,486	$	2,482	$	2,478
Advantage Sales & Marketing Inc.	Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - July 23, 2021)	1,965		1,914		1,701
Air Medical Group Holdings, Inc.	Healthcare Providers and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - April 28, 2022)	1,965		1,956		1,875
AlixPartners, LLP	Professional Services	LIBOR (3 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - April 4, 2024)	990		990		988
American Seafoods Group LLC	Food Products	Prime + 1.75%, Current Coupon 7.25%, Secured Debt (Maturity - August 21, 2023)	1,435		1,428		1,422
Ancestry.com Operations Inc.	Internet Software and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - October 19, 2023)	1,293		1,306		1,291
Arch Coal, Inc.	Metals and Mining	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - March 7, 2024)	1,960		1,967		1,962
Asurion, LLC	Insurance	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 3, 2023)	1,258		1,258		1,256
		LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 4, 2024)	323		321		322
			1,581		1,579		1,578
Atkore International, Inc.	Electric Equipment, Instruments and Components	LIBOR (3 months) + 2.75%, Current Coupon 5.36%, Secured Debt (Maturity - December 22, 2023)	2,887		2,905		2,866
Barracuda Networks	Internet Software and Services	LIBOR (3 months) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - February 12, 2025)	997		972		992
Bass Pro Group, LLC	Specialty Retail	LIBOR (3 months) + 5.00%, Current Coupon 7.50%, Secured Debt (Maturity - September 25, 2024)	1,970		1,926		1,945
Bausch Health Companies Inc.	Healthcare Providers and Services	LIBOR (1 month) + 3.00%, Current Coupon 5.48%, Secured Debt (Maturity - June 2, 2025)	1,347		1,353		1,344
BCP Renaissance Parent L.L.C.	Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 6.24%, Secured Debt (Maturity - October 31, 2024)	596		597		595



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Boxer Parent Company, Inc.	Software	LIBOR (3 months) + 4.25%, Current Coupon 6.85%, Secured Debt (Maturity - October 2, 2025)	$	2,793	$	2,767	$	2,751
Boyd Gaming Corporation	Hotel, Restaurant and Leisure	LIBOR (1 week) + 2.25%, Current Coupon 4.66%, Secured Debt (Maturity - September 15, 2023)	1,247		1,206		1,239
Builders FirstSource, Inc.	Building Products	LIBOR (1 month) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - February 29, 2024)	2,940		2,936		2,867
Caesars Resort Collection, LLC	Hotel, Restaurant and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - December 23, 2024)	1,244		1,208		1,234
Calpine Corporation	Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 2.50%, Current Coupon 5.11%, Secured Debt (Maturity - January 15, 2023)	1,964		1,971		1,963
CareerBuilder	Internet Software and Services	LIBOR (3 months) + 6.75%, Current Coupon 9.35%, Secured Debt (Maturity - July 31, 2023)	1,449		1,449		1,451
CDS U.S. Intermediate Holdings, Inc.	Hotel, Restaurant and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - July 8, 2022)	970		972		904
CenturyLink Inc.	Diversified Telecommunication Services	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - January 31, 2025)	995		942		979
Citgo Petroleum Corporation	Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 6.30%, Secured Debt (Maturity - July 29, 2021)	695		690		694
ClubCorp Holdings, Inc.	Real Estate Management and Development	LIBOR (3 months) + 2.75%, Current Coupon 5.35%, Secured Debt (Maturity - September 18, 2024)	1,959		1,949		1,867
Compass Power Generation, L.L.C.	Independent Power and Renewable Electricity Provider	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - December 20, 2024)	1,262		1,262		1,263
Creative Artists Agency, LLC	Entertainment	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 26, 2024)	1,970		1,970		1,945
		LIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - February 15, 2024)	995		981		993
			2,965		2,951		2,938
Cyxtera DC Holdings, Inc.	Technology Hardware, Storage and Peripherals	LIBOR (3 months) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - May 1, 2024)	2,948		2,958		2,900
Deerfield Holdings Corporation	Diversified Financial Services	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - February 13, 2025)	2,970		2,966		2,919
Diamond Resorts International, Inc.	Hotel, Restaurant and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 1, 2023)	2,125		2,152		2,053
EFS Cogen Holdings I LLC	Electric Utilities	LIBOR (3 months) + 3.25%, Current Coupon 5.86%, Secured Debt (Maturity - June 28, 2023)	1,816		1,829		1,808
Eldorado Resorts, Inc.	Hotel, Restaurant and Leisure	LIBOR (1 month) + 2.25%, Current Coupon 4.88%, Secured Debt (Maturity - April 17, 2024)	1,000		969		993
Encapsys LLC	Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - November 7, 2024)	990		991		978
Endo Luxembourg Finance Company I S.a.r.l.	Pharmaceuticals	LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - April 29, 2024)	1,965		1,983		1,940



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Everi Payments Inc.	Leisure Products	LIBOR (3 months) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - May 9, 2024)	$	1,965	$	1,958	$	1,963
Exgen Renewables IV, LLC	Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 3.00%, Current Coupon 5.63%, Secured Debt (Maturity - November 29, 2024)	294		294		276
Financial & Risk US Holdings, Inc.	Software	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - October 1, 2025)	1,421		1,420		1,384
First American Payment Systems, L.P.	Diversified Financial Services	LIBOR (1 month) + 4.75%, Current Coupon 7.39%, Secured Debt (Maturity - January 5, 2024)	883		893		883
Fitness International, LLC	Hotel, Restaurant and Leisure	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - April 18, 2025)	2,034		2,045		2,021
Flex Acquisition Company Inc	Containers and Packaging	LIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - December 29, 2023)	1,970		1,979		1,931
Flexera Software LLC	Software	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - February 26, 2025)	1,514		1,511		1,510
Gardner Denver, Inc.	Machinery	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - July 30, 2024)	2,255		2,249		2,256
Golden Nugget, Inc.	Hotel, Restaurant and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.23%, Secured Debt (Maturity - October 4, 2023)	1,870		1,870		1,856
Gray Television, Inc.	Broadcast Radio and Television	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - February 12, 2025)	1,839		1,822		1,835
		LIBOR (1 month) + 2.50%, Current Coupon 4.98%, Secured Debt (Maturity - January 2, 2026)	285		280		284
			2,124		2,102		2,119
Greatbatch Ltd.	Pharmaceuticals	LIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - October 27, 2022)	1,934		1,945		1,933
GYP Holdings III Corp.	Trading Companies and Distributors	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - June 2, 2025)	3,439		3,464		3,355
Harbor Freight Tools USA, Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 18, 2023)	1,944		1,950		1,910
Horizon Pharma, Inc.	Pharmaceuticals	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - March 29, 2024)	1,219		1,230		1,221
Hornblower Sub, LLC	Hotel, Restaurant and Leisure	LIBOR (3 months) + 4.50%, Current Coupon 7.10%, Secured Debt (Maturity - April 28, 2025)	1,995		1,989		1,999
Hyland Software, Inc.	Software	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 1, 2024)	498		485		498
Infiltrator Water Technologies, LLC	Specialty Retail	LIBOR (3 months) + 3.50%, Current Coupon 6.10%, Secured Debt (Maturity - May 23, 2025)	1,970		1,982		1,967
Invenergy Thermal Operating I LLC	Renewable Energy Provider	LIBOR (1 month) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - May 27, 2022)	1,392		1,371		1,382
		LIBOR (3 months) + 3.50%, Current Coupon 6.10%, Secured Debt (Maturity - August 28, 2025)	1,920		1,916		1,932
			3,312		3,287		3,314



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

IRB Holding Corp.	Food Products	LIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - February 5, 2025)	$	396	$	396	$	389
Ivanti Software, Inc.	Software	LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - January 22, 2024)	981		987		975
KBR, Inc.	Aerospace and Defense	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - April 25, 2025)	1,987		1,979		1,993
Kingpin Intermediate Holdings LLC	Diversified Consumer Services	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 3, 2024)	995		986		991
KUEHG Corp.	Diversified Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.35%, Secured Debt (Maturity - February 21, 2025)	2,451		2,458		2,434
Learfield Communications LLC	Media	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - December 1, 2023)	1,965		1,983		1,962
MA FinanceCo., LLC	Software	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 21, 2024)	383		384		377
Match Group, Inc.	Media	LIBOR (6 months) + 3.00%, Current Coupon 5.69%, Secured Debt (Maturity - February 24, 2025)	676		674		647
		LIBOR (3 months) + 2.50%, Current Coupon 5.08%, Secured Debt (Maturity - November 16, 2022)	2,000		1,998		1,998
			2,676		2,672		2,645
McAfee, LLC	Software	LIBOR (3 months) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 30, 2024)	945		932		945
McDermott International, Inc.	Construction and Engineering	LIBOR (1 month) + 5.00%, Current Coupon 7.50%, Secured Debt (Maturity - May 12, 2025)	990		971		954
Metro-Goldwyn-Mayer Inc.	Media	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - July 3, 2025)	995		969		990
Micro Holding Corp.	Media	LIBOR (1 month) + 2.50%, Current Coupon 4.99%, Secured Debt (Maturity - January 30, 2023)	997		971		982
		LIBOR (3 months) + 3.75%, Current Coupon 6.24%, Secured Debt (Maturity - September 13, 2024)	1,244		1,215		1,232
			2,241		2,186		2,214
Mohegan Tribal Gaming Authority	Hotel, Restaurant and Leisure	LIBOR (1 month) + 4.00%, Current Coupon 6.50%, Secured Debt (Maturity - October 13, 2023)	1,909		1,927		1,818
MPH Acquisition Holdings LLC	Health Care Technology	LIBOR (3 months) + 2.75%, Current Coupon 5.35%, Secured Debt (Maturity - June 7, 2023)	2,569		2,604		2,499
NAB Holdings, LLC	IT Services	LIBOR (3 months) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - July 1, 2024)	1,970		1,961		1,920
National Mentor Holdings, Inc.	Healthcare Facilities and Services	LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - March 9, 2026)	1,883		1,870		1,891
		LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - March 9, 2026)	117		116		117
			2,000		1,986		2,008
Ortho-Clinical Diagnostics, Inc	Life Sciences Tools and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - June 30, 2025)	1,935		1,931		1,868



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Packaging Coordinators Midco Inc	Healthcare Facilities and Services	LIBOR (3 months) + 4.00%, Current Coupon 6.61%, Secured Debt (Maturity - June 30, 2023)	$	995	$	990	$	994
Party City Holdings Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 19, 2022)	1,240		1,220		1,237
Phoenix Guarantor Inc.	Healthcare Facilities and Services	LIBOR (1 month) + 4.50%, Current Coupon 6.98%, Secured Debt (Maturity - March 5, 2026)	917		903		905
PI UK Holdco II Limited	Diversified Financial Services	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - January 3, 2025)	2,970		2,949		2,932
Prime Security Services Borrower, LLC	Commercial Services and Supplies	LIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - May 2, 2022)	653		637		649
Rackspace Hosting, Inc.	Electric Equipment, Instruments and Components	LIBOR (3 months) + 3.00%, Current Coupon 5.74%, Secured Debt (Maturity - November 3, 2023)	3,242		3,266		3,061
Radiate Holdco, LLC	Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - February 1, 2024)	2,538		2,514		2,509
Radiology Partners, Inc.	Healthcare Facilities and Services	LIBOR (3 months) + 4.75%, Current Coupon 7.55%, Secured Debt (Maturity - July 9, 2025)	1,496		1,489		1,502
Red Ventures, LLC	Professional Services	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 8, 2024)	1,627		1,616		1,625
Savage Enterprises, LLC	Road and Rail	LIBOR (1 month) + 4.50%, Current Coupon 6.99%, Secured Debt (Maturity - August 1, 2025)	1,024		1,004		1,027
Scientific Games International, Inc.	Leisure Products	LIBOR (2 months) + 2.75%, Current Coupon 5.33%, Secured Debt (Maturity - August 14, 2024)	890		891		869
Seattle SpinCo, Inc.	Software	LIBOR (3 months) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 21, 2024)	2,587		2,590		2,548
SeaWorld Parks & Entertainment, Inc.	Hotel, Restaurant and Leisure	LIBOR (3 months) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - April 1, 2024)	1,960		1,962		1,947
ServiceMaster Company, LLC	Home and Office Products	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - November 8, 2023)	651		648		650
Sprint Communications, Inc.	Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - February 2, 2024)	499		492		491
SRS Distribution Inc.	Trading Companies and Distributors	LIBOR (3 months) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - May 23, 2025)	1,194		1,191		1,147
SS&C Technologies, Inc.	Software	LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 16, 2025)	200		199		198
		LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 16, 2025)	278		277		276
			478		476		474
Staples, Inc.	Distributors	LIBOR (3 months) + 4.00%, Current Coupon 6.49%, Secured Debt (Maturity - September 12, 2024)	1,975		1,970		1,961
Starfruit US Holdco LLC	Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - October 1, 2025)	1,250		1,247		1,240



HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio Company	Industry	Type of Investment	Principal		Cost		Fair Value

Telenet Financing USD LLC	Diversified Telecommunication Services	LIBOR (1 month) + 2.25%, Current Coupon 4.73%, Secured Debt (Maturity - August 17, 2026)	$	1,655	$	1,653	$	1,635
Transdigm, Inc.	Aerospace and Defense	LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 9, 2023)	1,960		1,967		1,925
		LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 22, 2024)	988		985		968
			2,948		2,952		2,893
Travelport Finance (Luxembourg) S.A.R.L.	Internet Software and Services	LIBOR (3 months) + 2.50%, Current Coupon 5.18%, Secured Debt (Maturity - March 17, 2025)	1,232		1,226		1,232
UFC Holdings, LLC	Media	LIBOR (3 months) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - August 18, 2023)	1,960		1,971		1,960
USS Ultimate Holdings Inc	Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - August 26, 2024)	597		588		596
Utz Quality Foods, LLC	Food Products	LIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - November 21, 2024)	1,580		1,579		1,580
VeriFone Systems, Inc.	Hardware	LIBOR (1 month) + 4.00%, Current Coupon 6.68%, Secured Debt (Maturity - August 20, 2025)	499		489		493
Vertafore, Inc.	Software	LIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - July 2, 2025)	2,494		2,482		2,463
Vertiv Group Corporation	Electrical Equipment	LIBOR (3 months) + 4.00%, Current Coupon 6.63%, Secured Debt (Maturity - November 30, 2023)	1,555		1,569		1,467
VFH Parent LLC	Diversified Financial Services	LIBOR (3 months) + 3.50%, Current Coupon 6.13%, Secured Debt (Maturity - March 2, 2026)	1,000		995		1,004
Vistra Operations Company LLC	Electric Utilities	LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - December 14, 2023)	1,960		1,971		1,955
Wand NewCo 3, Inc.	Automobiles	LIBOR (1 month) + 3.50%, Current Coupon 5.98%, Secured Debt (Maturity - February 5, 2026)	1,200		1,189		1,203
Web.Com Group, Inc.	Internet Software and Services	LIBOR (3 months) + 3.75%, Current Coupon 6.24%, Secured Debt (Maturity - October 10, 2025)	909		908		900
West Corporation	Diversified Telecommunication Services	LIBOR (3 months) + 3.50%, Current Coupon 6.13%, Secured Debt (Maturity - October 10, 2024)	645		644		602
		LIBOR (3 months) + 4.00%, Current Coupon 6.63%, Secured Debt (Maturity - October 10, 2024)	1,019		1,009		963
			1,664		1,653		1,565
WideOpenWest Finance, LLC	Media	LIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - August 18, 2023)	3,452		3,462		3,355
William Morris Endeavor Entertainment, LLC	Recreation Facilities and Services	LIBOR (1 month) + 2.75%, Current Coupon 5.36%, Secured Debt (Maturity - May 16, 2025)	636		607		601
Zekelman Industries, Inc	Manufacturing	LIBOR (1 month) + 2.25%, Current Coupon 4.74%, Secured Debt (Maturity - June 14, 2021)	1,000		987		993
Total Loan Portfolio			$	170,325	$	169,827	$	167,819

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

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

Acosta, Inc.	Commercial Services & Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - September 26, 2021)	$	1,995	$	1,884	$	1,679
Acrisure, LLC	Insurance	LIBOR (2 months) + 4.25%, Current Coupon 5.99%, Secured Debt (Maturity - November 22, 2023)	2,109		2,116		2,139		Insurance	LIBOR (2 months) + 4.25%, Current Coupon 6.77%, Secured Debt (Maturity - November 22, 2023)	$	2,492	$	2,487	$	2,422
Advantage Sales & Marketing Inc.	Commercial Services & Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.02%, Secured Debt (Maturity - July 23, 2021)	1,985		1,937		1,950		Commercial Services and Supplies	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - July 23, 2021)	1,970		1,913		1,752
Air Medical Group Holdings, Inc.	Health Care Providers & Services	LIBOR (1 month) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - April 28, 2022)	1,985		1,975		1,996		Health Care Providers and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - April 28, 2022)	1,970		1,960		1,847
Alphabet Holding Company, Inc.	Food Products	LIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - September 26, 2024)	1,990		1,981		1,860
AlixPartners, LLP									Professional Services	LIBOR (3 months) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - April 4, 2024)	992		992		956
American Seafoods Group LLC	Food Products	LIBOR (1 month) + 2.75%, Current Coupon 4.61%, Secured Debt (Maturity - August 21, 2023)	1,456		1,450		1,459		Food Products	LIBOR (1 month) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - August 21, 2023)	1,435		1,428		1,382
Ancestry.com Operations Inc.	Internet Software & Services	LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - October 19, 2023)	1,985		2,002		1,998		Internet Software and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - October 19, 2023)	1,293		1,306		1,240
Arch Coal, Inc.	Metals & Mining	LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - March 7, 2024)	1,980		1,986		1,994		Metals and Mining	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - March 7, 2024)	1,965		1,972		1,916
AshCo, Inc.	Specialty Retail	LIBOR (3 months) + 5.00%, Current Coupon 6.88%, Secured Debt (Maturity - September 25, 2024)	1,990		1,948		1,974
Asurion, LLC	Insurance	LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - November 3, 2023)	1,271		1,271		1,281		Insurance	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 3, 2023)	1,261		1,261		1,212
										LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 4, 2024)	323		322		310
											1,584		1,583		1,522
Atkore International, Inc.	Electric Equipment, Instruments & Components	LIBOR (3 months) + 2.75%, Current Coupon 5.06%, Secured Debt (Maturity - December 22, 2023)	2,970		2,988		2,993		Electric Equipment, Instruments and Components	LIBOR (1 month) + 3.00%, Current Coupon 4.97%, Secured Debt (Maturity - December 22, 2023)	2,948		2,967		2,864
Barracuda Networks									Internet Software and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - February 12, 2025)	1,000		974		956
Bass Pro Group, LLC									Specialty Retail	LIBOR (3 months) + 4.25%, Current Coupon 6.55%, Secured Debt (Maturity - September 25, 2024)	1,975		1,929		1,898
Bausch Health Companies Inc.									Health Care Equipment and Supplies	LIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - June 2, 2025)	1,402		1,408		1,342
BCP Renaissance Parent L.L.C.	Oil, Gas & Consumable Fuels	LIBOR (3 months) + 4.00%, Current Coupon 5.77%, Secured Debt (Maturity - October 31, 2024)	600		602		604		Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 31, 2024)	597		599		583
BMC Software Finance, Inc.	Software	LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - September 12, 2022)	3,148		3,172		3,167
Boxer Parent Company, Inc.									Software	LIBOR (3 months) + 4.25%, Current Coupon 7.05%, Secured Debt (Maturity - October 2, 2025)	2,800		2,772		2,708
Boyd Gaming Corporation									Hotels, Restaurants and Leisure	LIBOR (1 week) + 2.25%, Current Coupon 4.66%, Secured Debt (Maturity - September 15, 2023)	1,250		1,208		1,208
Builders FirstSource, Inc.	Building Products	LIBOR (1 month) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - February 29, 2024)	2,970		2,966		2,986		Building Products	LIBOR (1 month) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - February 29, 2024)	2,947		2,943		2,774
Caesars Resort Collection, LLC									Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - December 23, 2024)	1,247		1,210		1,201
Calpine Corporation	Independent Power and Renewable Electricity Producers	LIBOR (3 months) + 2.50%, Current Coupon 4.81%, Secured Debt (Maturity - January 15, 2023)	1,985		1,991		1,996		Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 2.50%, Current Coupon 5.31%, Secured Debt (Maturity - January 15, 2023)	1,970		1,977		1,881
CHS/Community Health Systems, Inc.	Healthcare Providers & Services	LIBOR (3 months) + 3.00%, Current Coupon 4.98%, Secured Debt (Maturity - January 27, 2021)	1,613		1,608		1,554
ClubCorp Holdings, Inc.	Real Estate Management & Development	LIBOR (3 months) + 3.25%, Current Coupon 5.55%, Secured Debt (Maturity - September 18, 2024)	1,959		1,949		1,973
Colorado Buyer Inc	Technology Hardware, Storage & Peripherals	LIBOR (3 months) + 3.00%, Current Coupon 4.78%, Secured Debt (Maturity - May 1, 2024)	2,978		2,987		2,983
Confie Seguros Holding II Co.	Insurance	LIBOR (1 month) + 5.25%, Current Coupon 7.23%, Secured Debt (Maturity - April 19, 2022)	1,980		1,986		1,982
CPI International, Inc.	Aerospace & Defense	LIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - July 26, 2024)	1,990		1,990		2,001
CareerBuilder									Internet Software and Services	LIBOR (3 months) + 6.75%, Current Coupon 9.14%, Secured Debt (Maturity - July 31, 2023)	1,500		1,500		1,493

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

CDS U.S. Intermediate Holdings, Inc.									Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - July 8, 2022)	$	973	$	974	$	914
CenturyLink, Inc.									Diversified Telecommunication Services	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - January 31, 2025)	997		943		934
Citgo Petroleum Corporation									Oil, Gas and Consumable Fuels	LIBOR (3 months) + 3.50%, Current Coupon 5.90%, Secured Debt (Maturity - July 29, 2021)	695		689		682
ClubCorp Holdings, Inc.									Real Estate Management and Development	LIBOR (3 months) + 2.75%, Current Coupon 5.55%, Secured Debt (Maturity - September 18, 2024)	1,959		1,949		1,852
CPI International, Inc.									Aerospace and Defense	LIBOR (1 month) + 3.50%, Current Coupon 6.01%, Secured Debt (Maturity - July 26, 2024)	1,975		1,975		1,919
Creative Artists Agency LLC									Entertainment	LIBOR (1 month) + 3.00%, Current Coupon 5.47%, Secured Debt (Maturity - February 15, 2024)	997		983		966
Cyxtera DC Holdings, Inc.									Technology Hardware, Storage and Peripherals	LIBOR (3 months) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - May 1, 2024)	2,955		2,966		2,840
Deerfield Holdings Corporation	Diversified Financial Services	LIBOR (1 month) + 3.25%, Current Coupon 5.55%, Secured Debt (Maturity - February 13, 2025)	$	3,000	$	2,996	$	3,014	Diversified Financial Services	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - February 13, 2025)	2,978		2,974		2,827
Diamond Resorts International, Inc.	Hotels, Restaurants & Leisure	LIBOR (1 month) + 4.50%, Current Coupon 6.38%, Secured Debt (Maturity - September 1, 2023)	2,146		2,173		2,187		Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023)	2,130		2,159		1,992
EFS Cogen Holdings I LLC	Electric Utilities	LIBOR (3 months) + 3.25%, Current Coupon 5.56%, Secured Debt (Maturity - June 28, 2023)	1,890		1,902		1,906		Electric Utilities	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - June 28, 2023)	1,816		1,830		1,781
Duff & Phelps Corporation	Diversified Financial Services	LIBOR (3 months) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - November 7, 2024)	1,000		1,001		1,009
Eldorado Resorts, Inc.									Hotels, Restaurants and Leisure	LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 17, 2024)	1,000		968		960
Encapsys LLC									Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - November 7, 2024)	993		994		970
Endo Luxembourg Finance Company I S.a.r.l.	Pharmaceuticals	LIBOR (1 month) + 4.25%, Current Coupon 6.19%, Secured Debt (Maturity - April 29, 2024)	1,985		2,003		1,985		Pharmaceuticals	LIBOR (1 month) + 4.25%, Current Coupon 6.81%, Secured Debt (Maturity - April 29, 2024)	1,970		1,989		1,862
Envision Healthcare Corporation	Health Care Providers & Services	LIBOR (1 month) + 3.00%, Current Coupon 4.88%, Secured Debt (Maturity - December 1, 2023)	1,415		1,415		1,423
Everi Payments Inc.	Leisure Products	LIBOR (3 months) + 3.50%, Current Coupon 5.49%, Secured Debt (Maturity - May 9, 2024)	1,985		1,979		2,003		Leisure Products	LIBOR (3 months) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - May 9, 2024)	1,970		1,963		1,917
Exgen Renewables IV, LLC	Electrical Production	LIBOR (3 months) + 3.00%, Current Coupon 4.99%, Secured Debt (Maturity - November 29, 2024)	299		299		303		Independent Power and Renewable Electricity Provider	LIBOR (3 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - November 29, 2024)	294		293		281
Financial & Risk US Holdings, Inc.									Software	LIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - October 1, 2025)	1,425		1,424		1,363
First American Payment Systems, L.P.	Diversified Financial Services	LIBOR (1 month) + 4.75%, Current Coupon 6.44%, Secured Debt (Maturity - January 5, 2024)	930		941		937		Diversified Financial Services	LIBOR (1 month) + 4.75%, Current Coupon 7.29%, Secured Debt (Maturity - January 5, 2024)	889		900		885
Fitness International, LLC	Hotels, Restaurants & Leisure	LIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - July 1, 2020)	1,735		1,755		1,753		Hotels, Restaurants and Leisure	LIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - April 18, 2025)	2,039		2,050		1,963
Flex Acquisition Company Inc	Containers & Packaging	LIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - December 29, 2023)	1,990		1,999		2,002		Containers and Packaging	LIBOR (3 months) + 3.00%, Current Coupon 5.35%, Secured Debt (Maturity - December 29, 2023)	1,975		1,985		1,869
Flexera Software LLC	Software	LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - February 26, 2025)	1,529		1,526		1,541		Software	LIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - February 26, 2025)	1,518		1,514		1,468
Gardner Denver, Inc.	Machinery	LIBOR (1 month) + 2.75%, Current Coupon 5.05%, Secured Debt (Maturity - July 30, 2024)	1,990		2,000		2,002		Machinery	LIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - July 30, 2024)	2,316		2,309		2,242
Golden Nugget, Inc.	Hotels, Restaurants & Leisure	LIBOR (1 month) + 3.25%, Current Coupon 4.90%, Secured Debt (Maturity - October 4, 2023)	1,985		1,985		2,005
Greatbatch Ltd.	Health Care Equipment & Supplies	LIBOR (1 month) + 3.25%, Current Coupon 4.99%, Secured Debt (Maturity - October 27, 2022)	2,627		2,642		2,652
GYP Holdings III Corp.	Trading Companies & Distributors	LIBOR (1 month) + 3.00%, Current Coupon 4.77%, Secured Debt (Maturity - April 3, 2023)	3,474		3,496		3,493
Harbor Freight Tools USA, Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 4.38%, Secured Debt (Maturity - August 18, 2023)	1,975		1,982		1,980
HD Supply Waterworks, Ltd.	Trading Companies & Distributors	LIBOR (3 months) + 3.00%, Current Coupon 5.01%, Secured Debt (Maturity - August 1, 2024)	140		139		141
Horizon Pharma, Inc.	Pharmaceuticals	LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - March 29, 2024)	1,985		2,004		1,999
IG Investments Holdings, LLC	Professional Services	LIBOR (1 month) + 3.50%, Current Coupon 5.80%, Secured Debt (Maturity - October 29, 2021)	1,985		1,996		2,012
IRB Holding Corp.	Hotels, Restaurants & Leisure	LIBOR (1 month) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - February 5, 2025)	400		400		405

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

Jackson Hewitt Tax Service Inc. Diversified Financial Services LIBOR (1 month) + 7.00%, Current Coupon 8.77%, Secured Debt (Maturity - July 30, 2020) $ 1,939
$ 1,875
$ 1,934
KBR Construction LIBOR (3 months) + 3.75%, Current Coupon 5.76%, Secured Debt (Maturity - March 28, 2025) 1,250
1,244
1,244
KMG Chemicals, Inc. Chemicals LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 17, 2024) 807
804
813
KUEHG Corp. Educational Services LIBOR (1 month) + 3.75%, Current Coupon 6.05%, Secured Debt (Maturity - August 12, 2022) 2,476
2,482
2,494
LANDesk Group, Inc. Software LIBOR (1 month) + 4.25%, Current Coupon 6.13%, Secured Debt (Maturity - January 22, 2024) 991
996
976
Learfield Communications LLC Media LIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - December 1, 2023) 1,985
2,003
2,007
MA FinanceCo., LLC Electric Equipment, Instruments & Components LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 21, 2024) 387
387
383
Mallinckrodt International Finance S.A. Pharmaceuticals LIBOR (3 months) + 3.00%, Current Coupon 4.82%, Secured Debt (Maturity - February 24, 2025) 1,000
998
999
Mohegan Tribal Gaming Authority Hotels, Restaurants & Leisure LIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - October 13, 2023) 1,929
1,946
1,929
MPH Acquisition Holdings LLC Health Care Technology LIBOR (3 months) + 2.75%, Current Coupon 5.05%, Secured Debt (Maturity - June 7, 2023) 2,777
2,813
2,793
NAB Holdings, LLC IT Services LIBOR (3 months) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - July 1, 2024) 1,990
1,980
2,005
Ortho-Clinical Diagnostics, Inc Life Sciences Tools & Services LIBOR (1 month) + 3.75%, Current Coupon 5.63%, Secured Debt (Maturity - June 30, 2021) 1,975
1,971
1,994
PODS, LLC Transportation & Logistics LIBOR (1 month) + 3.00%, Current Coupon 4.71%, Secured Debt (Maturity - December 6, 2024) 1,990
1,989
2,006
Radiate Holdco, LLC Media LIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - November 3, 2023) 3,275
3,300
3,267
LIBOR (1 month) + 3.00%, Current Coupon 4.88%, Secured Debt (Maturity - February 1, 2024) 2,564
2,538
2,538
5,838
5,805
Red Ventures, LLC Direct Marketing Services LIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - November 8, 2024) 1,990
1,976
2,010
Scientific Games International, Inc. Leisure Products LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - August 14, 2024) 899
900
903
Seattle SpinCo, Inc. Electric Equipment, Instruments & Components LIBOR (3 months) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 21, 2024) 2,613
2,616
2,590
SeaWorld Parks & Entertainment, Inc. Hotels, Restaurants & Leisure LIBOR (3 months) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - April 1, 2024) 1,980
1,982
1,975
Signode Industrial Group US Inc. Machinery LIBOR (1 month) + 2.75%, Current Coupon 4.40%, Secured Debt (Maturity - April 30, 2021) 2,733
2,750
2,735



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

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

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

SS&C Technologies Software LIBOR (1 month) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - February 28, 2025) $ 632
$ 630
$ 635
LIBOR (1 month) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - February 28, 2025) 225
225
227
855
862
Staples, Inc. Distributors LIBOR (3 months) + 4.00%, Current Coupon 5.79%, Secured Debt (Maturity - September 12, 2024) 1,995
1,990
1,980
Telenet Financing USD LLC Diversified Telecommunication Services LIBOR (1 month) + 2.50%, Current Coupon 4.28%, Secured Debt (Maturity - March 2, 2026) 1,655
1,655
1,665
Transdigm, Inc. Aerospace & Defense LIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 9, 2023) 1,980
1,987
1,988
LIBOR (1 month) + 2.50%, Current Coupon 4.38%, Secured Debt (Maturity - August 22, 2024) 998
995
1,002
2,982
2,990
Travelport Finance (Luxembourg) S.A.R.L. Internet Software & Services LIBOR (3 months) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - March 17, 2025) 1,250
1,244
1,254
Traverse Midstream Partners LLC Oil, Gas & Consumable Fuels LIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024) 781
784
787
UFC Holdings, LLC Media LIBOR (3 months) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - August 18, 2023) 1,985
1,996
1,998
Ultra Resources, Inc. Oil, Gas & Consumable Fuels LIBOR (1 month) + 3.00%, Current Coupon 4.76%, Secured Debt (Maturity - April 12, 2024) 2,000
2,002
1,986
Utz Quality Foods, LLC Commercial Services & Supplies LIBOR (1 month) + 3.50%, Current Coupon 5.35%, Secured Debt (Maturity - November 21, 2024) 1,600
1,599
1,619
Valeant Pharmaceuticals International, Inc. Pharmaceuticals LIBOR (1 month) + 3.50%, Current Coupon 5.24%, Secured Debt (Maturity - April 1, 2022) 1,456
1,462
1,473
Vertiv Group Corporation Electrical Equipment LIBOR (3 months) + 4.00%, Current Coupon 5.67%, Secured Debt (Maturity - November 30, 2023) 1,555
1,568
1,564
Vistra Operations Company LLC Electric Utilities LIBOR (1 month) + 2.25%, Current Coupon 4.06%, Secured Debt (Maturity - December 14, 2023) 1,980
1,991
1,994
West Corporation Diversified Telecommunication Services LIBOR (1 month) + 3.50%, Current Coupon 5.40%, Secured Debt (Maturity - October 10, 2024) 650
649
652
LIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - October 10, 2024) 1,029
1,020
1,040
1,669
1,692
WideOpenWest Finance, LLC Diversified Telecommunication Services LIBOR (1 month) + 3.25%, Current Coupon 5.10%, Secured Debt (Maturity - August 18, 2023) 3,487
3,496
3,420
Total Loan Portfolio $ 140,265
$ 140,200

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

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

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



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

McAfee, LLC	Software	LIBOR (3 months) + 3.75%, Current Coupon 6.10%, Secured Debt (Maturity - September 30, 2024)	$	948	$	933	$	925
McDermott International, Inc.	Construction and Engineering	LIBOR (1 month) + 5.00%, Current Coupon 7.52%, Secured Debt (Maturity - May 12, 2025)	993		973		929
Metro-Goldwyn-Mayer Inc.	Media	LIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - July 3, 2025)	998		970		964
Michaels Stores, Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 4.97%, Secured Debt (Maturity - January 30, 2023)	1,000		973		960
Micro Holding Corp. (MH Sub and Internet Brands)	Media	LIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 13, 2024)	1,247		1,217		1,186
Mohegan Tribal Gaming Authority	Hotels, Restaurants and Leisure	LIBOR (1 month) + 4.00%, Current Coupon 6.52%, Secured Debt (Maturity - October 13, 2023)	1,914		1,933		1,719
MPH Acquisition Holdings LLC	Health Care Technology	LIBOR (1 month) + 3.25%, Current Coupon 5.57%, Secured Debt (Maturity - June 7, 2023)	2,664		2,702		2,532
NAB Holdings, LLC	IT Services	LIBOR (3 months) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - July 1, 2024)	1,975		1,965		1,885
Ortho-Clinical Diagnostics, Inc	Life Sciences Tools and Services	LIBOR (1 month) + 3.25%, Current Coupon 5.76%, Secured Debt (Maturity - June 30, 2025)	1,945		1,940		1,809
Packaging Coordinators Midco Inc	Health Care Facilities and Services	LIBOR (3 months) + 4.00%, Current Coupon 6.81%, Secured Debt (Maturity - June 30, 2023)	997		992		985
Party City Holdings Inc.	Specialty Retail	LIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - August 19, 2022)	1,245		1,224		1,205
PI UK Holdco II Limited	Diversified Financial Services	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - January 3, 2025)	2,978		2,956		2,893
Prime Security Services, LLC (Protection One)	Commercial Services and Supplies	LIBOR (1 month) + 2.75%, Current Coupon 5.09%, Secured Debt (Maturity - May 2, 2022)	654		638		628
Rackspace Hosting, Inc.	Electric Equipment, Instruments and Components	LIBOR (3 months) + 3.00%, Current Coupon 5.58%, Secured Debt (Maturity - November 3, 2023)	3,251		3,276		2,884
Radiate Holdco, LLC	Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - February 1, 2024)	2,544		2,519		2,408
Red Ventures, LLC	Professional Services	LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 8, 2024)	1,631		1,619		1,590
Savage Enterprises, LLC	Road and Rail	LIBOR (1 month) + 4.50%, Current Coupon 6.88%, Secured Debt (Maturity - August 1, 2025)	1,097		1,076		1,085
Scientific Games International, Inc.	Leisure Products	LIBOR (2 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - August 14, 2024)	892		893		840
Seattle SpinCo, Inc.	Software	LIBOR (3 months) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)	2,593		2,597		2,422
SeaWorld Parks & Entertainment, Inc.	Hotels, Restaurants and Leisure	LIBOR (3 months) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - April 1, 2024)	1,965		1,967		1,881
ServiceMaster Global Holdings, Inc.	Home and Office Products	LIBOR (1 month) + 2.50%, Current Coupon 4.84%, Secured Debt (Maturity - November 8, 2023)	2,000		1,993		1,964

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

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



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

Sprint Corporation	Diversified Telecommunication Services	LIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - February 2, 2024)	$	500	$	493	$	485
SRS Distribution Inc.	Trading Companies and Distributors	LIBOR (3 months) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - May 23, 2025)	1,197		1,194		1,120
SS&C European Holdings S.a.r.l.	Software	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)	206		205		195
SS&C Technologies, Inc.	Software	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)	543		541		514
Staples, Inc.	Distributors	LIBOR (3 months) + 4.00%, Current Coupon 6.54%, Secured Debt (Maturity - September 12, 2024)	1,980		1,975		1,903
Starfruit US Holdco LLC	Chemicals	LIBOR (1 month) + 3.25%, Current Coupon 5.60%, Secured Debt (Maturity - October 1, 2025)	1,250		1,247		1,204
Telenet Financing USD LLC	Diversified Telecommunication Services	LIBOR (1 month) + 2.25%, Current Coupon 4.71%, Secured Debt (Maturity - August 17, 2026)	1,655		1,653		1,580
Transdigm, Inc.	Aerospace and Defense	LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 9, 2023)	1,965		1,972		1,859
		LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 22, 2024)	990		988		937
			2,955		2,960		2,796
Travelport Finance (Luxembourg) S.A.R.L.	Internet Software and Services	LIBOR (3 months) + 2.50%, Current Coupon 5.12%, Secured Debt (Maturity - March 17, 2025)	1,237		1,231		1,219
Traverse Midstream Partners LLC	Oil, Gas and Consumable Fuels	LIBOR (3 months) + 4.00%, Current Coupon 6.60%, Secured Debt (Maturity - September 27, 2024)	781		784		752
UFC Holdings, LLC	Media	LIBOR (3 months) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - August 18, 2023)	1,965		1,977		1,920
USS Ultimate Holdings, Inc. (United Site)	Consumer Services	LIBOR (1 month) + 3.75%, Current Coupon 6.09%, Secured Debt (Maturity - August 26, 2024)	598		590		590
Utz Quality Foods, LLC	Food Products	LIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - November 21, 2024)	1,584		1,583		1,539
VeriFone Systems, Inc.	Hardware	LIBOR (1 month) + 4.00%, Current Coupon 6.64%, Secured Debt (Maturity - August 20, 2025)	500		490		485
Vertafore, Inc.	Software	LIBOR (1 month) + 3.25%, Current Coupon 6.05%, Secured Debt (Maturity - July 2, 2025)	2,500		2,488		2,384
Vertiv Group Corporation	Electrical Equipment	LIBOR (3 months) + 4.00%, Current Coupon 6.71%, Secured Debt (Maturity - November 30, 2023)	1,555		1,570		1,420
Vistra Operations Company LLC	Electric Utilities	LIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - December 14, 2023)	1,965		1,977		1,895
Web.Com Group, Inc.	Internet Software and Services	LIBOR (3 months) + 3.75%, Current Coupon 6.17%, Secured Debt (Maturity - October 10, 2025)	1,000		1,000		965

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

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

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

Telenet Financing USD LLC Diversified Telecommunications Services LIBOR (1 month) + 2.50%, Current Coupon 3.92%, Secured Debt (Maturity - March 2, 2026) 1,655
1,655
1,663
Transdigm, Inc. Aerospace & Defense LIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 9, 2023) 1,985
1,992
1,990
LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - August 22, 2024) 1,000
998
1,006
2,985
2,990
2,996
Travelport Finance (Luxembourg) S.A.R.L. Internet Software & Services LIBOR (3 months) + 2.75%, Current Coupon 4.17%, Secured Debt (Maturity - September 2, 2021) 1,901
1,901
1,903
Traverse Midstream Partners LLC Oil, Gas & Consumable Fuels LIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024) 781
784
793
UFC Holdings, LLC Media LIBOR (3 months) + 3.25%, Current Coupon 4.81%, Secured Debt (Maturity - August 18, 2023) 1,990
2,002
2,003
Ultra Resources, Inc. Oil, Gas & Consumable Fuels LIBOR (1 month) + 3.00%, Current Coupon 4.41%, Secured Debt (Maturity - April 12, 2024) 2,000
2,002
2,002
Utz Quality Foods, LLC Commercial Services and Supplies LIBOR (1 month) + 3.50%, Current Coupon 5.01%, Secured Debt (Maturity - November 21, 2024) 1,600
1,599
1,616
Valeant Pharmaceuticals International, Inc. Pharmaceuticals LIBOR (1 month) + 3.50%, Current Coupon 4.94%, Secured Debt (Maturity - April 1, 2022) 1,546
1,553
1,570
Vertiv Group Corporation Electrical Equipment LIBOR (3 months) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - November 30, 2023) 1,555
1,569
1,556
Vistra Operations Company LLC Electric Utilities LIBOR (2 months) + 2.75%, Current Coupon 4.08%, Secured Debt (Maturity - December 14, 2023) 1,985
1,996
2,001
West Corporation Diversified Telecommunications Services LIBOR (1 month) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - October 10, 2024) 1,032
1,022
1,036
WideOpenWest Finance, LLC Diversified Telecommunications Services LIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - August 18, 2023) 3,496
3,506
3,470
Total Loan Portfolio $ 139,017
$ 139,012



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

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

For the three months ended March 31, 2019 and 2018, we ~~accrued~~recognized approximately $546,000 and $525,000, respectively, of dividend income in respect of our investment in HMS-ORIX.

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

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

	As of March 31, 2018		As of December 31, 2017		As of March 31, 2019		As of December 31, 2018
Assets
Portfolio investments at fair value (amortized cost: $140,265 and $139,017 as of March 31, 2018 and December 31, 2017, respectively)	$	140,200	$	139,012
Portfolio investments at fair value (amortized cost: $169,827 and $164,570 as of March 31, 2019 and December 31, 2018, respectively)					$	167,819	$	157,923
Cash and cash equivalents	4,943		2,681		7,440		3,873
Receivable for securities sold					—		—
Interest receivable	314		306		297		197
Deferred financing costs, net	793		890		400		497
Other assets	—		15		4		30
Total assets	$	146,250	$	142,904	$	175,960	$	162,520
Liabilities
Credit facilities payable	$	91,300	$	86,500	$	123,130	$	98,818
Payable for securities purchased	3,020		5,268		1,987		18,442
Distributions payable	875		—		911		902
Accounts payable and accrued expenses	80		64		996		439
Total liabilities	95,275		91,832		127,024		118,601
Net assets
Members’ equity	50,975		51,072		48,936		43,919
Total net assets	50,975		51,072		48,936		43,919
Total liabilities and net assets	$	146,250	$	142,904	$	175,960	$	162,520

										HMS-ORIX SLF LLC
Statement of Operations (Unaudited)
Statement of Operations				Statement of Operations
(dollars in thousands)
				Three Months Ended
	Three Months Ended March 31, 2018			March 31, 2019			March 31, 2018
Investment income
Interest income	$	1,734		$	2,548		$	1,734
Dividend income	—			—			—
Fee income	—			—			—
Other income	—			—			—
Total investment income	1,734			2,548			1,734
Expenses
Interest expense	850			1,247			850
Other expenses	—			—			—
General and administrative expenses	21			11			21
Total expenses	871			1,258			871
Net investment income	863			1,290			863
Net realized (loss) from investments	(26		)
Net realized loss from investments				(1		)	(26		)
Net realized income	837			1,289			837
Net change in unrealized (depreciation) on investments	(59		)
Net change in unrealized appreciation (depreciation) on investments				4,639			(59		)
Net increase in net assets resulting from operations	$	778		$	5,928		$	778

PORTFOLIO ASSET QUALITY

As of March 31, ~~2018,~~2019, we owned a broad portfolio of ~~179~~201 investments in ~~124~~128 companies representing a wide range of industries. We believe that this broad portfolio adds to the structural protection of the portfolio, revenue sources, income, cash flows and dividends. The portfolio included the following:

▪

5144 debt investments in 4742 Middle Market portfolio companies with an aggregate fair value of approximately ~~$498.6~~$396.5 million and a cost basis of approximately ~~$512.1~~$420.2 million. The Middle Market debt investments had a weighted average annual effective yield of approximately ~~8.9%~~9.9%, which is calculated assuming the investments on non-accrual status ~~are non-yielding,~~have a zero yield, and ~~83.3%~~82.9% of the Middle Market debt investments were secured by first priority liens. Further, ~~92.5%~~96.3% of the Middle Market debt investments contain variable interest rates, though a majority of the investments with variable rates are subject to contractual minimum base interest rates between 100 and 150 basis points.

▪

4049 debt investments in 3945 Private Loan portfolio companies with an aggregate fair value of approximately ~~$345.4~~$418.6 million and a cost basis of approximately ~~$346.6~~$419.3 million. The Private Loan debt investments had a weighted average annual effective yield of approximately ~~9.6%~~10.4%, which is calculated assuming the investments on non-accrual status ~~are non-yielding,~~have a zero yield, and ~~93.6%~~91.0% of the Private Loan debt investments were secured by first priority liens. Further, ~~95.7%~~94.8% of the Private Loan debt investments contain variable interest rates, though a majority of the investments with variable interest rates are subject to contractual minimum base interest rates between 100 and 150 basis points.

▪

3138 debt investments in 2730 LMM portfolio companies with an aggregate fair value of approximately ~~$102.6~~$134.1 million and a cost basis of approximately ~~$103.4~~$134.5 million. The LMM debt investments had a weighted average annual effective yield of approximately ~~12.6%~~12.5%, and 100.0% of the debt investments were secured by first priority liens. Also, ~~40.8%~~51.8% of the LMM debt investments are fixed rate investments with fixed interest rates between 8.0% and 16.0%. Also, 26 LMM debt investments, representing approximately ~~59.2%~~48.2% of the LMM debt investments have variable interest rates subject to a contractual minimum base interest rate of 100 basis points.


▪	5063 equity investments and seven equity warrant investments in 2729 LMM portfolio companies, ~~nine~~11 Private Loan portfolio companies, ~~four~~five Middle Market portfolio companies and ~~five~~six Other Portfolio companies with an aggregate fair value of approximately ~~$121.0~~$160.8 million and a cost basis of approximately ~~$109.9~~$139.5 million.

Overall, as of March 31, ~~2018,~~2019, our investment portfolio had a weighted average effective yield on our investments of approximately ~~8.9%~~9.6%, and ~~78.8%~~76.0% of our total portfolio’s ~~investment composition~~investments (including our Other Portfolio investments) ~~was~~were secured by first priority liens.

As of March 31, ~~2018,~~2019, we had ~~five~~four investments in ~~four~~two portfolio companies that were on non-accrual status, which comprised approximately ~~0.9%~~0.1% of our total investment portfolio at fair value and ~~2.2%~~0.4% of the total investment portfolio at cost. As of

December 31, ~~2017,~~2018, we had ~~four~~five investments in three portfolio companies that were on non-accrual status, which comprised approximately ~~0.2%~~0.4% of the total investment portfolio at fair value and ~~0.9%~~0.6% of the total investment portfolio at cost. For those investments in which S&P credit ratings are available, which represents approximately ~~33.1%~~29.0% of the portfolio as of March 31, ~~2018,~~2019, the portfolio had a weighted average effective credit rating of B.

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

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

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

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

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

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

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


	March 31, 2018				December 31, 2017				March 31, 2019				December 31, 2018
Investment Rating	Investments at Fair Value		Percentage of Total LMM Portfolio		Investments at Fair Value		Percentage of Total LMM Portfolio		Investments at Fair Value		Percentage of Total LMM Portfolio		Investments at Fair Value		Percentage of Total LMM Portfolio
1	$	15,353	9.7	%	$	2,940	2.2	%	$	58,578	27.0	%	$	56,937	27.1	%
2	34,130		21.4		47,155		34.8		8,905		4.1		15,038		7.1
3	104,053		65.3		79,655		58.7		136,478		62.8		124,397		59.2
4	5,460		3.4		5,439		4.0		9,886		4.6		10,718		5.1
5	358		0.2		468		0.3		3,332		1.5		3,184		1.5
Total	$	159,354	100.0	%	$	135,657	100.0	%	$	217,179	100.0	%	$	210,274	100.0	%

Based upon ~~the~~this investment rating system, the weighted average rating of our LMM portfolio at fair value was approximately ~~2.6 and 2.7~~2.5 as of both March 31, ~~2018~~2019 and December 31, ~~2017~~2018~~, respectively.~~.

DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS

RESULTS COMPARISONS FOR THE THREE MONTHS ENDED MARCH 31, ~~2018~~2019 AND MARCH 31, ~~2017~~2018

Total Investment Income, Operating Expenses, Net Assets

For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, our total investment income was approximately ~~$26.6~~$29.2 million and ~~$25.4~~$24.0 million, respectively, consisting predominately of interest income and dividend income. The increase in total investment income was primarily driven by an increase in interest income of approximately $4.0 million and an increase in dividend income of approximately $1.1 million. The increase in interest income was primarily due to an increase in the weighted average annual effective yield on investments. As of March 31, ~~2018,~~2019, the portfolio had a weighted average annual effective yield on investments of approximately ~~8.9%, which was unchanged~~9.6% compared to 8.9% as of March 31, ~~2017,~~2018. The increase in the weighted average annual effective yield is largely due to higher yielding Private Loan and ~~our average investment portfolio for the three months ended March 31, 2018 was $1,058.5 million compared to $974.2 million for the three months ended March 31, 2017. Additionally,~~Middle Market investments during the three months ended March 31, ~~2018 and 2017, we accreted approximately $4.8 million and $4.1 million, respectively, of unearned~~2019 compared to the three months ended March 31, 2018. Dividend income ~~into interest income. The increase in interest income was~~increased primarily due to (i) the growth in our total portfolio resulting from the investment of additional equity capital raised and borrowings under our amended and restated senior secured revolving credit facility (the “EverBank Credit Facility”) entered into by us, HMS Equity Holding, LLC and HMS Equity Holding II, Inc., our wholly owned subsidiaries, with EverBank Commercial Finance, Inc. as administrative agent and certain financial institutions as lenders, and the amended and restated credit agreement entered into by HMS Funding I, LLC, our wholly owned subsidiary, with Deutsche Bank AG, New York Branch as administrative agent (the “Deutsche Bank Credit Facility,” and, together with our EverBank Credit Facility, the “Credit Facilities”) and (ii) acceleration of the accretion of original issuance discounts primarily resulting from principal repayments on and salesimproving performance of certain ~~portfolio~~of our Lower Middle Market equity investments. We believe further increases in investment income in future periods may arise due to (i) a growing base of portfolio company investments and (ii) investments being held for the entire period relative to incremental net investment activity during each quarter. For information on the Credit Facilities, see Note 5 - ~~Borrowings~~ ~~to our condensed consolidated financial statements included elsewhere in this report.~~

For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, we recognized ~~$334,000~~$361,000 and ~~$785,000,~~$334,000, respectively, of non-recurring fee income received from our portfolio companies or other third parties, which accounted for approximately ~~1.3%~~1.2% and ~~3.1%~~1.4%, respectively, of our total investment income during such period. Such fee income is transaction based and typically consists of prepayment fees, structuring fees, amendment and consent fees and other non-recurring fees. As such, future fee income is generally dependent on new direct origination investments and the occurrence of prepayments and other events at existing portfolio companies resulting in such fees.

For the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, expenses, net of incentive fee and administrative services expense waivers, were approximately ~~$11.8~~$15.3 million and ~~$10.2~~$11.8 million, respectively. The increase in expenses is primarily due to (i) an increase in interest expense of ~~$1.1~~$2.0 million and (ii) an increase in ~~base management fees and~~ incentive fees ~~(net~~ of ~~fee waivers) of $544,000.~~$1.4 million. Interest expense increased primarily due to an increase in our average borrowings of approximately ~~$44.5~~$60.5 million during the period and an increase in our cost of borrowing on the Credit ~~Facilities and an increase in the annualized interest rate on our borrowings.~~Facilities. Average borrowings under the Credit Facilities were $504.5 million for the three months ended March 31, 2019 compared to $444.0 million for the three months ended March 31, 2018. As of March 31, 2019 and 2018, ~~compared to $399.5~~the annualized interest rate on borrowings was 5.1% and 4.4%, respectively. For the three months ended March 31, 2019, the Advisers earned a $1.4 million subordinated incentive fee on income, while no such fee was earned for the three months ended March 31, ~~2017. As of~~2018.

For the three months ended March 31, ~~2018 and 2017,~~2019, the ~~annualized interest rate on our borrowings was 4.4% and 3.7%, respectively. Base management fees and incentive fees (net of fee waivers) increased primarily due to an~~net increase in ~~our average gross assets.~~net assets resulting from operations (gross of stockholder distributions declared) was approximately $18.8 million. The increase was attributable to (i) net investment income of approximately $13.9 million and (ii) net unrealized appreciation on investments of approximately $12.1 million, offset by realized losses on investments of approximately $7.1 million.

For the three months ended March 31, 2018, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately $15.6 million. The increase was attributable to (i) net investment income of

approximately ~~$14.9~~$12.2 million and (ii) ~~net change in~~ unrealized appreciation on investments of approximately $10.6 million, offset by net realized losses ~~on investments~~ of approximately ~~$9.9 million.~~

For the three months ended March 31, 2017, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately $13.3 million. The increase was primarily attributable to (i) net investment income of approximately $15.1 million and (ii) net realized gains of approximately $2.6 million, offset by net change in unrealized depreciation on investments of approximately $4.5$7.2 million.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Overview

As of March 31, ~~2018,~~2019, we had approximately ~~$24.5~~$18.3 million in cash and cash equivalents, which we held in various custodial accounts. In addition, as of March 31, ~~2018,~~2019, we had ~~$112.0~~$70.0 million in capacity available under the Credit ~~Facilities.~~Facilities, in the aggregate. To seek to enhance our returns, we intend to continue to employ leverage as market conditions permit and at the discretion of our Adviser, ~~but in no event will leverage employed exceed 50% of the value of our assets, the maximum we are allowed~~subject to ~~borrow~~asset coverage restrictions under the 1940 Act. See “Financial Condition, Liquidity and Capital Resources -— Financing Arrangements.”

As of March 31, ~~2018,~~2019, we had 33 senior secured loan investments and four equity investments with aggregate unfunded commitments of ~~$50.5~~$45.1 million. We believe that we maintain sufficient cash and cash equivalents on hand and available borrowings to fund such unfunded commitments should the need arise.

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

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

Liquidity and Capital Resources

Cash Flows

For the three months ended March 31, 2019, we experienced a net decrease in cash and cash equivalents of approximately $3.4 million. During that period, approximately $19.4 million of cash was generated from our operating activities, which principally consisted of principal repayments from and sales of investments in portfolio companies of $39.0 million and a net increase in net assets resulting from operations of approximately $18.8 million, offset by the purchase of new portfolio investments of $34.2 million. During the three months ended March 31, 2019, approximately $22.9 million was used in financing activities, which principally consisted of a net $9.0 million decrease in borrowings under the Credit Facilities, $6.6 million used for the redemption of our common stock and $7.2 million in cash distributions paid to stockholders.

For the three months ended March 31, 2018, we experienced a net decrease in cash and cash equivalents of approximately $21.3 million. During that period, approximately $32.9 million of cash was used in our operating activities, which principally consisted of the purchase of new portfolio investments of $181.8 million, offset by principal repayments from and sales of investments in portfolio companies of $133.0 million and a net increase in net assets resulting from operations of approximately $15.6 million. During the three months ended March 31, 2018, approximately $11.6 million was generated from financing activities, which principally consisted of a net $28.0 million increase in borrowings under the Credit Facilities, offset by $6.9 million in cash distributions paid to stockholders and $9.4 million in cash used for the redemption of our common stock.

For the three months ended March 31, 2017, we experienced a net increase in cash and cash equivalents of approximately $17.7 million. During that period, approximately $39.2 million of cash was generated from our operating activities, which principally consisted of a net increase in net assets resulting from operations of approximately $13.3 million and principal repayments from and sales of investments in portfolio companies of $137.8 million, offset by the purchase of new portfolio investments of $110.9 million. During the three months ended March 31, 2017, approximately $21.5 million was used in financing activities, which principally consisted of a net $27.0 million decrease in borrowings under the Credit Facilities, $6.2 million in cash distributions paid to stockholders and $5.1 million in cash distributions used for the redemption of our common stock, offset by $17.3 million in net stock offering proceeds received.

Continuous Public Offering

With the approval of our board of directors, we closed the Offering to new investors effective September 30, 2017. During the three months ended March 31, ~~2018,~~2019, we raised proceeds of ~~$6.9~~$6.4 million from ~~the~~our distribution reinvestment plan.

During the three months ended March 31, ~~2017,~~2018, we raised proceeds of ~~$25.8~~$6.9 million from ~~the Offering, including proceeds from the~~our distribution reinvestment ~~plan, and incurred $1.6 million for selling commissions and Dealer Manager fees. We also incurred an obligation for $387,000 of costs related to the Offering.~~

plan.

Distributions

The following table reflects the cash distributions per share that we have declared on our common stock during the three months ended March 31, ~~2018~~2019 and ~~2017~~2018 (dollars in thousands except per share amounts).


	Distributions				Distributions
	Per Share		Amount		Per Share		Amount
2019
Three months ended March 31, 2019					$	0.17	$	13,606
2018
Three months ended March 31, 2018	$	0.17	$	13,803	$	0.17	$	13,803
2017
Three months ended March 31, 2017	$	0.17	$	12,922

On March ~~22, 2018,~~26, 2019, with the authorization of our board of directors, we declared distributions to our stockholders for the period of April ~~2018~~2019 through June ~~2018.~~2019. These distributions have been, or will be, calculated based on stockholders of record each day from April 1, ~~2018~~2019 through June 30, ~~2018~~2019 in an amount equal to $0.00191781 per share, per day. Distributions are paid on the first business day following the completion of each month to which they relate.

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


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

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

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

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

We may fund our cash distributions from any sources of funds legally available, including stock offering proceeds, if any, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to us on account of preferred and common equity investments in portfolio companies and fee waivers from our Advisers. We have not established ~~any limit~~limits on the ~~extent to which~~amount of funds that we may use ~~borrowings or stock offering proceeds~~from legally available sources to ~~fund~~make distributions. Our distributions may exceed our ~~earnings, especially during the period before we have substantially invested the stock offering proceeds.~~earnings. As a result, a portion of the distributions we make may represent a return of capital for U.S. federal income tax purposes.

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

In order to satisfy the Code’s requirements applicable to entities subject to tax as RICs, we are required to distribute substantially all of our taxable income to our stockholders on an annual basis. However, we may elect to spill over certain excess undistributed taxable income from one taxable year into the next taxable year, which may require us to incur a 4% nondeductible U.S. federal excise tax on such excess undistributed taxable income. In order to avoid the imposition of the 4% nondeductible excise tax, we

need to distribute, in respect of each calendar year dividends for U.S. federal income tax purposes of an amount at least equal to the sum of (1) 98.0% of our net ordinary income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gain in excess of capital loss, or capital gain net income, adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of such calendar year (or, if we so elect, for the calendar year) and (3) any net ordinary

income and capital gain net income for the preceding calendar years that was not distributed during such calendar years and on which we incurred no U.S. federal income tax.

Financing Arrangements

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

As of March 31, ~~2018,~~2019, we had $120.0 million outstanding and ~~$0.0 million available~~no availability under our ~~EverBank~~TIAA Credit Facility, and ~~$338.0~~$380.0 million outstanding and ~~$112.0~~$70.0 million available under the Deutsche Bank Credit Facility, both of which we estimated approximated fair value. Availability under each of the Credit Facilities is subject to certain limitations and the asset coverage restrictions under the 1940 Act. For further information on our Credit Facilities, including key terms and financial covenants, refer to Note ~~5 -~~6 — Borrowings to the consolidated financial statements included in our Annual Report on Form 10-K (as amended) for the year ended December 31, ~~2017~~2018 as well as Note 5 -— Borrowings to the condensed consolidated financial statements included elsewhere in this Report.

As a BDC, we ~~have historically been~~are able to issue “senior securities,” including borrowing money from banks or other financial institutions, only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence or issuance. ~~In March 2018, the~~The Small Business Credit Availability Act, ~~(the “SBCAA”) was~~ enacted into ~~law. The SBCAA,~~law in March 2018, among other things, amended the 1940 Act to reduce the asset coverage requirement applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements, obtains certain approval and, in the case of unlisted BDCs, makes an offer to repurchase shares held by its stockholders as of the date of the requisite approval. Effectiveness of the reduced asset coverage requirements to a BDC requires approval by either (1) a “required majority” (as defined in Section 57(o) of the 1940 Act) of such BDC’s board of directors with effectiveness one year after the date of such approval or (2) a majority of the votes cast at a special or annual meeting of such BDC’s stockholders at which a quorum is present, which is effective the day after such stockholder approval. The Company has not requested or obtained either such approval. As of March 31, 2019 and December 31, 2018, our asset coverage ratio under BDC regulations was 227% when assuming unfunded commitments are treated as senior securities. As of December 31, 2017, our asset coverage ratio under BDC regulations was 236% when assuming unfunded commitments are treated as senior securities. As of March 31, 2018, considering these limitations, we had the ability to draw upon the entire $112.0 million of remaining capacity in the Credit Facilities.226% and 223%, respectively.

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

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

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

Contractual Obligations

As of March 31, ~~2018,~~2019, we had ~~$458.0~~$500.0 million in borrowings outstanding under the Credit Facilities. Our ~~EverBank~~TIAA Credit Facility will mature March 6, 2020, with two one-year extension options, subject to lender approval, and the Deutsche Bank Credit Facility will mature on November 20, 2022. See Note 5 -— Borrowings to the financial statements included elsewhere in this Report for a description of the Credit Facilities.

A summary of our significant contractual payment obligations for the repayment of outstanding borrowings at March 31, ~~2018~~2019 is as follows:



	Payments Due By Period (dollars in thousands)
	Total		Less than 1 year		1-3 years		3-5 years		After 5 years
TIAA Credit Facility ⁽¹⁾	$	120,000	$	120,000	$	—	$	—	$	—
Deutsche Bank Credit Facility ⁽²⁾	380,000		—		—		380,000		—
Total Credit Facilities	$	500,000	$	120,000	$	—	$	380,000	$	—


(1)	At March 31, ~~2018, $0.0 million was available~~2019, we had no availability under our ~~EverBank~~TIAA Credit Facility.


(2)	At March 31, ~~2018, $112.0~~2019, $70.0 million remained available under the Deutsche Bank Credit Facility; however, our borrowing ability is limited to the asset coverage ~~ratio~~ restrictions imposed by the 1940 Act, as discussed above.

Off-Balance Sheet Arrangements

AtAs of March 31, ~~2018,~~2019, we had a total of approximately ~~$50.5~~$45.1 million in outstanding commitments comprised of (i) 33 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. We recognized unrealized ~~depreciation~~appreciation of approximately ~~$18,000~~$265,000 on our outstanding unfunded loan commitments and no unrealized appreciation or depreciation on our outstanding unfunded capital commitments during the three months ended March 31, ~~2018.~~2019. We reasonably believe that we ~~have~~maintain sufficient assets and available borrowings to adequately cover and allow us to satisfy our outstanding unfunded ~~commitments.~~commitments should the need arise. At December 31, ~~2017,~~2018, we had a total of approximately ~~$45.4~~$62.5 million in outstanding commitments comprised of (i) 2836 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. We recognized unrealized ~~appreciation~~depreciation of approximately ~~$14,000~~$132,000 on our outstanding unfunded loan commitments and no unrealized appreciation or depreciation on our outstanding unfunded capital commitments during the year ended December 31, ~~2017.~~2018. We had equity commitments of up to $30.0 million to HMS-ORIX, which were fully funded as of March 31, ~~2018~~2019 and December 31, ~~2017.~~2018.


	Commitments and Contingencies				Commitments and Contingencies
	(dollars in thousands)				(dollars in thousands)
	March 31, 2018		December 31, 2017		March 31, 2019		December 31, 2018
Unfunded Loan Commitments
Adams Publishing Group, LLC					$	985	$	1,735
American Nuts, LLC					281		1,266
Apex Linen Services, Inc.	$	403	$	403	403		403
Arcus Hunting, LLC	1,566		976		1,374		904
ASC Ortho Management Company, LLC					750		750
BarFly Ventures, LLC	613		613		—		123
BBB Tank Services	20		—		100		200
BigName Holdings, LLC	101		101		29		29
Boccella Precast Products, LLC	285		500		500		500
CDHA Management, LLC	2,061		2,343
Centre Technologies Holdings, LLC					600		—
Chamberlin HoldCo, LLC	400		—		400		400
Charps, LLC	1,000		1,000		1,000		1,000
Clad-Rex Steel, LLC	100		100		—		100
CTVSH, PLLC	200		200		200		200
Datacom, LLC	5		25
Direct Marketing Solutions, Inc.	400		—		400		400
Felix Investments Holdings II LLC	1,667		1,667
DTE Enterprises, LLC					750		750
Dynamic Communities, LLC					250		250
Gamber-Johnson Holdings, LLC	300		300		300		300
GST Autoleather Inc.	—		1,281
GRT Rubber Technologies, LLC					3,259		4,125
Guerdon Modular Holdings, Inc.	300		400		400		400
Hawk Ridge Systems, LLC	400		400		—		400
Hojeij Branded Foods, Inc.	1,923		1,923
Hostway Corporation	7		7
Hunter Defense Technologies, Inc.	2,832		—
HDC/HW Intermediate Holdings, Inc.					180		180
Hoover Group, Inc.					1,450		2,375
HW Temps LLC	200		200		200		200
LaMi Products, LLC	294		294
Market Force Information, Inc.	400		400
Meisler Operating, LLC	400		400
Mystic Logistics Holdings, LLC	200		200
Implus Footcare, LLC					—		44


	Commitments and Contingencies				Commitments and Contingencies
	(dollars in thousands)				(dollars in thousands)
	March 31, 2018		December 31, 2017		March 31, 2019		December 31, 2018
Independent Pet Partners Intermediate Holdings, LLC					$	12,888	$	22,244
Jacent Strategic Merchandising, LLC					441		—
KMC Acquisition, LLC					500		500
Laredo Energy VI, LP					1,750		—
Market Force Information, Inc.					260		350
Meisler Operating, LLC					400		400
Mystic Logistics Holdings, LLC					200		200
New Era Technology, Inc.					479		479
NexRev, LLC	$	1,000	$	—	1,000		1,000
NNE Partners, LLC	2,056		5,542
NuStep, LLC	300		300		300		300
Permian Holdco 2, Inc.	—		97
PPC/Shift, LLC	500		500
Radiology Partners, Inc.	5,254		—
Resolute Industrial LLC	5,750		5,750
SI East , LLC					2,500		2,500
Tedder Acquisition, LLC					180		180
Volusion LLC					—		1,961
Wireless Vision Holdings, LLC	2,084		2,084		—		693
Unfunded Capital Commitments
Brightwood Capital Fund III, LP	1,000		1,000		1,000		1,000
Brightwood Capital Fund IV, LP	9,000		9,000		5,000		8,000
Copper Trail Energy Fund I LP	2,500		2,500		1,694		1,754
Freeport Financial Funds	4,941		4,941		2,744		3,942
Total	$	50,462	$	45,447	$	45,147	$	62,537

Recent Developments and Subsequent Events

On May 4, 2018, we, our Adviser and our Sub-Adviser entered into a conditional income incentive fee agreement (the “First Quarter 2018 Fee Waiver Agreement”), pursuant to which, for a period from January 1, 2018 through March 31, 2018, our Advisers could waive the “subordinated incentive fee on income,” as such term is defined in the Investment Advisory Agreement, upon the occurrence of any event that, in our Advisers’ sole discretion, causes such waiver to be deemed necessary. The First Quarter 2018 Fee Waiver Agreement may require us to repay our Advisers for previously waived payments of up to 100% of our operating expenses or waived base management fees or incentive fees under certain circumstances. The previously waived fees are potentially subject to repayment by us, if at all, within a period not to exceed three years from the date of each respective fee waiver.

On April ~~13, 2018,~~12, 2019, we filed a tender offer statement on Schedule TO with the SEC to commence an offer by us to purchase, as approved by our board of directors, ~~1,973,729.33~~an estimated 796,617.07 shares of our issued and outstanding common stock, par value $0.001 per ~~share.~~share, at up to approximately $6.4 million. The offer is for cash at a purchase price equal to the NAV per share to be determined within 48 hours of the repurchase date.

On May 8, 2019, HMS-ORIX Holdings I LLC, a wholly owned subsidiary of HMS-ORIX, which holds all of the investments in broadly-syndicated loans held by HMS-ORIX, was merged (the “HMS-ORIX Holdings Merger”) into Mariner CLO 7, Ltd., an exempted company incorporated under the laws of the Cayman Islands (“Mariner CLO”). In connection with the HMS-ORIX Holdings Merger, HMS-ORIX made certain distributions to its members. We used the cash proceeds it received from the HMS-ORIX Holdings Merger to purchase an aggregate principal amount of approximately $25.9 million of the “Subordinated Notes” due in 2032 issued by Mariner CLO in connection with an offering of $405.9 million aggregate principal amount of notes (the “CLO Offering”). The CLO Offering’s Subordinated Notes are unsecured obligations of Mariner CLO, junior to the secured notes, and distributions to the holders of the Subordinated Notes will be made solely from distributions on the collateral held by Mariner CLO after all other payments required to be made to the holders of the secured notes have been made. The collateral for the notes issued by the Mariner CLO consists primarily of senior secured floating rate leveraged loans made to corporate and other business entities.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Quantitative and Qualitative Disclosures about Market Risk

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

Our interest income will be affected by changes in various interest rates, including LIBOR and prime rates, to the extent any of our debt investments include floating interest rates. We generally invest in floating rate debt instruments, meaning that the interest rate payable on such instrument resets periodically based upon changes in a specified interest rate index, typically the one-month or three-month LIBOR. As of March 31, ~~2018,~~2019, approximately ~~88.6%~~88.7% of our LMM, Private Loan, and Middle Market portfolio debt investments (based on cost) contained floating interest rates. AtAs of March 31, ~~2018,~~2019, the one-month LIBOR was approximately ~~1.88%~~2.49% and the three-month LIBOR was approximately ~~2.31%~~2.60%. ~~However, many~~Many of our investments provide that the specified interest rate index on such instruments will never fall below a level, or floor, generally between 100 and 150 basis points regardless of the level of the specified index rate, which minimizes the negative impact to our interest income that would result from a decline in index rates.

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

Further, because we borrow money to make investments, our net investment income is partially dependent upon the difference between the interest rate at which we invest borrowed funds and the interest rate at which we borrow funds. In periods of rising interest rates and when we have borrowed capital with floating interest rates, our interest expense will increase, which will increase our financing costs and reduce our net investment income, especially to the extent we hold fixed-rate debt investments. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

The following table shows the approximate annualized increase or decrease (dollars in thousands) in the components of net investment income due to hypothetical interest rate index changes, assuming no changes in our investments and borrowings as of March 31, ~~2018.~~2019.


Change in interest rates	Increase (Decrease) in Interest Income			Increase (Decrease) in Interest Expense			Net Increase (Decrease) in Net Investment Income			Increase (Decrease) in Interest Income			Increase (Decrease) in Interest Expense			Net Increase (Decrease) in Net Investment Income
Down 200 basis points										$	(12,838	)	$	(10,000	)	(2,838	)
Down 100 basis points	$	(8,174	)	$	(4,580	)	$	(3,594	)	(8,653		)	(5,000		)	(3,653	)
Down 50 basis points	(4,315		)	(2,290		)	(2,025		)	(4,380		)	(2,500		)	(1,880	)
Up 50 basis points	4,328			2,290			2,038			4,388			2,500			1,888
Up 100 basis points	8,656			4,580			4,076			8,777			5,000			3,777
Up 200 basis points	17,312			9,160			8,152			17,553			10,000			7,553
Up 300 basis points	25,967			13,740			12,227

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

If deemed prudent, we may use interest rate risk management techniques in an effort to minimize our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. As of March 31, ~~2018,~~2019, we had not entered into any interest rate hedging arrangements.

Item 4. Controls and Procedures.

In accordance with the Exchange Act, Rules 13a-15 and 15d-15, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, ~~2018,~~2019 to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

No change occurred in our internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act), during the three months ended March 31, ~~2018~~2019 that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

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

Item 1A. Risk Factors.

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

~~Recently passed legislation may allow us to incur additional leverage.~~

A BDC has historically been able to issue “senior securities,” including borrowing money from banks or other financial institutions, only in amounts such that its asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence or issuance. In March 2018, the SBCAA was enacted into law. The SBCAA, among other things, amended the 1940 Act to reduce the asset coverage requirements applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements and obtains certain approvals. Effectiveness of the reduced asset coverage requirements to a BDC requires approval by either (1) a “required majority” (as defined in Section 57(o) of the 1940 Act) of such BDC’s board of directors with effectiveness one year after the date of such approval or (2) a majority of the votes cast at a special or annual meeting of such BDC’s stockholders at which a quorum is present, which is effective the day after such stockholder approval. In addition, as a BDC that does not have its common stock listed on a national securities exchange, we would be required to offer each stockholder of record as of the approval date of the reduced asset coverage requirement the opportunity for us to repurchase such stockholder’s shares held on such date. As a result, if we receive the relevant approval and we comply with the applicable disclosure requirements, we would be able to incur additional indebtedness, which may increase the risk of investing in us. In addition, since our base management fee is payable based upon our gross assets, which includes any borrowings for investment purposes, the base management fee expenses will increase if we incur additional leverage.

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

Issuer Purchases of Equity Securities

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

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

January 1, 2018 through January 31, 2018 —
$ —
—
—
February 1, 2018 through February 28, 2018 —
—
—
—
March 1, 2018 through March 31, 2018 1,147,067.146
8.20
1,147,067.146
—



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

January 1, 2019 through January 31, 2019	—	$	—	—	—
February 1, 2019 through February 28, 2019	820,174.35	7.99		820,174.35	—
March 1, 2019 through March 31, 2019	—	—		—	—
Total	820,174.35	7.99		820,174.35	—

Item 3. Defaults upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Not applicable.

Item 6. Exhibits.



Exhibit No.		Description
10.1		Fourth Quarter ~~2017~~2018 Conditional Income Incentive Fee Waiver Agreement, dated as of ~~January 31, 2018,~~March 4, 2019, by and among the Registrant, HMS Adviser LP and MSC Adviser I, LLC (Filed as Exhibit 10.1 to the Registrant’s current report on Form 8-K, filed on ~~January 31, 2018~~March 4, 2019 (File No. 814-00939) and incorporated herein by reference).
31.1		Certification of Chief Executive Officer of the Registrant, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith).
31.2		Certification of Chief Financial Officer of the Registrant, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith).
32.1		Certification of Chief Executive Officer and Chief Financial Officer of the Registrant, pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith).

SIGNATURES

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



		HMS INCOME FUND, INC.

Date:	May ~~15, 2018~~14, 2019	By:	/s/ SHERRI W. SCHUGART
			Sherri W. Schugart
			Chairman, Chief Executive Officer and President

Date:	May ~~15, 2018~~14, 2019	By:	/s/ RYAN T. SIMS
			Ryan T. Sims
			Chief Financial Officer and Secretary

6468



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

January 1, 2018 through January 31, 2018	—	$	—	—	—
February 1, 2018 through February 28, 2018	—	—		—	—
March 1, 2018 through March 31, 2018	1,147,067.146	8.20		1,147,067.146	—