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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

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

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

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

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of ~~February 9,~~May 5, 2021 was 67,045,105.

We are filing this Quarterly Report on Form 10-Q, or the Report, in compliance with Rule 13a-13 as promulgated by the Securities and Exchange Commission, or the SEC,, under the Securities Exchange Act of 1934, as amended, or the Exchange ~~Act~~.Act. In this Report, except where context suggest otherwise, the terms “Company,” “we,” “our” or “us” refers to PennantPark Investment Corporation and its consolidated subsidiaries; “PennantPark Investment” refers to only PennantPark Investment Corporation; “our SBIC Fund” refers collectively to our consolidated subsidiaries, PennantPark SBIC II LP, or SBIC II, and its general partner, PennantPark SBIC GP II, LLC; “Funding I” refers to PennantPark Investment Funding I, LLC, a wholly-owned subsidiary prior to deconsolidation on July 31, 2020; “Taxable Subsidiaries” refers to PNNT Cascade Environmental Holdings, LLC, PNNT CI (Galls) Prime Investment Holdings, LLC, PNNT ecoserve, LLC, PNNT Investment Holdings, LLC and PNNT New Gulf Resources, LLC; ~~“PSLF”~~“PSLF” refers to PennantPark Senior Loan Fund, LLC, an unconsolidated joint ~~venture~~;venture; “PennantPark Investment Advisers” or “Investment Adviser” refers to PennantPark Investment Advisers, LLC; “PennantPark Investment Administration” or “Administrator” refers to PennantPark Investment Administration, LLC; “SBA” refers to the Small Business Administration; “SBIC” refers to a small business investment company under the Small Business Investment Act of 1958, as amended, or the “1958 Act”; “BNP Credit Facility” refers to our revolving credit facility with BNP Paribas prior to deconsolidation of Funding I; “Truist Credit Facility” refers to our multi-currency, senior secured revolving credit facility with Truist Bank (formerly SunTrust Bank), as amended and restated; “Credit Facilities” refers to the BNP Credit Facility and Truist Credit Facility collectively; “2024 Notes” refers to our 5.50% Notes due 2024; “BDC” refers to a business development company under the Investment Company Act of 1940, as amended, or the “1940 Act”; “SBCAA” refers to the Small Business Credit Availability Act; “Code” refers to the Internal Revenue Code of 1986, as amended; and “RIC” refers to a regulated investment company under the Code. References to our portfolio, our investments and our business include investments we make through SBIC II and other consolidated subsidiaries.

	December 31, 2020			September 30, 2020			March 31, 2021			September 30, 2020
	(unaudited)						(unaudited)
Assets
Investments at fair value
Non-controlled, non-affiliated investments (cost—$634,147,235 and $713,683,209, respectively)	$	749,948,744		$	735,674,666
Non-controlled, affiliated investments (cost—$104,375,033 and $77,628,920, respectively)		62,002,633			27,753,893
Controlled, affiliated investments (cost—$378,901,433 and $374,260,162, respectively)		315,139,688			318,342,859
Total of investments (cost—$1,117,423,701 and $1,165,572,291, respectively)		1,127,091,065			1,081,771,418
Cash and cash equivalents (cost—$20,114,225 and $25,801,087, respectively)		20,157,299			25,806,002
Non-controlled, non-affiliated investments (cost—$646,758,885 and $713,683,209, respectively)							$	773,788,326		$	735,674,666
Non-controlled, affiliated investments (cost—$104,463,115 and $77,628,920, respectively)								71,404,648			27,753,893
Controlled, affiliated investments (cost—$381,150,760 and $374,260,162, respectively)								330,044,569			318,342,859
Total of investments (cost—$1,132,372,760 and $1,165,572,291, respectively)								1,175,237,543			1,081,771,418
Cash and cash equivalents (cost—$33,833,269 and $25,801,087, respectively)								33,855,496			25,806,002
Interest receivable		5,121,432			5,005,715			4,916,119			5,005,715
Distribution receivable		1,089,000			1,393,716			1,452,000			1,393,716
Prepaid expenses and other assets		376,573			376,030			376,932			376,030
Total assets		1,153,835,369			1,114,352,881			1,215,838,090			1,114,352,881
Liabilities
Distributions payable		8,045,413			8,045,413			8,045,413			8,045,413
Payable for investments purchased		139,220			5,461,508			18,581,995			5,461,508
Truist Credit Facility payable, at fair value (cost—$355,544,900 and $388,252,000, respectively) (See Notes 5 and 10)		349,104,144			368,701,972
2024 Notes payable, net (par—$86,250,000 and $86,250,000, respectively) (See Notes 5 and 10)		84,003,935			83,837,560
SBA debentures payable, net (par—$118,500,000 and $118,500,000, respectively) (See Notes 5 and 10)		115,862,617			115,772,677
Truist Credit Facility payable, at fair value (cost—$375,544,900 and $388,252,000, respectively) (See Notes 5 and 10)								372,867,465			368,701,972
2024 Notes payable, net (par—$86,250,000) (See Notes 5 and 10)								84,170,310			83,837,560
SBA debentures payable, net (par—$108,500,000 and $118,500,000, respectively) (See Notes 5 and 10)								106,128,698			115,772,677
Base management fee payable, net (See Note 3)		4,114,428			4,369,637			4,282,129			4,369,637
Interest payable on debt		2,971,453			2,022,614			2,007,332			2,022,614
Accrued other expenses		796,969			432,648			507,853			432,648
Total liabilities		565,038,179			588,644,029			596,591,195			588,644,029
Commitments and contingencies (See Note 11)
Net assets
Common stock, 67,045,105 and 67,045,105 shares issued and outstanding, respectively Par value $0.001 per share and 100,000,000 shares authorized		67,045			67,045
Common stock, 67,045,105 shares issued and outstanding Par value $0.001 per share and 100,000,000 shares authorized								67,045			67,045
Paid-in capital in excess of par value		787,625,031			787,625,031			787,625,031			787,625,031
Accumulated distributable net loss		(198,894,886	)		(261,983,224	)		(168,445,181	)		(261,983,224	)
Total net assets	$	588,797,190		$	525,708,852		$	619,246,895		$	525,708,852
Total liabilities and net assets	$	1,153,835,369		$	1,114,352,881		$	1,215,838,090		$	1,114,352,881
Net asset value per share	$	8.78		$	7.84		$	9.24		$	7.84

	Three Months Ended December 31,						Three Months Ended March 31,						Six Months Ended March 31,
	2020			2019			2021			2020			2021			2020
Investment income:
From non-controlled, non-affiliated investments:
Interest	$	11,432,511		$	20,384,914		$	11,668,772		$	22,748,529		$	23,101,282		$	43,133,443
Payment-in-kind		1,458,798			1,884,506			2,011,940			1,978,894			3,470,739			3,863,400
Other income		481,125			189,918			23,942			751,284			505,067			941,202
From non-controlled, affiliated investments:
Payment-in-kind		76,727			—			380,271			—			456,998			—
From controlled, affiliated investments:
Interest		2,276,776			635,615			2,177,259			559,934			4,454,035			1,204,624
Payment-in-kind		1,485,523			2,908,812			1,518,971			1,496,251			3,004,494			4,395,988
Dividend income		1,521,000			—			1,452,000			—			2,973,000			—
Total investment income		18,732,460			26,003,765			19,233,155			27,534,892			37,965,615			53,538,657
Expenses:
Base management fee (See Note 3)		4,114,428			4,742,430			4,282,129			4,880,699			8,396,558			9,623,129
Performance-based incentive fee (See Note 3)		—			744,626			—			1,913,047			—			2,657,673
Interest and expenses on debt (See Note 10)		5,004,131			8,866,549			4,889,854			8,962,513			9,893,985			17,828,583
Administrative services expenses (See Note 3)		505,020			521,520			505,020			521,520			1,010,040			1,043,040
Other general and administrative expenses		643,483			643,480			643,480			648,881			1,286,963			1,292,841
Expenses before performance-based incentive fee waiver and provision for taxes		10,267,062			15,518,605			10,320,483			16,926,660			20,587,546			32,445,266
Performance-based incentive fee waiver (See Note 3)		—			—			—			—			—			—
Provision for taxes		150,000			300,000			150,000			300,000			300,000			600,000
Net expenses		10,417,062			15,818,605			10,470,483			17,226,660			20,887,546			33,045,266
Net investment income		8,315,398			10,185,160			8,762,672			10,308,232			17,078,069			20,493,391
Realized and unrealized gain on investments and debt:
Net realized loss on investments on:
Realized and unrealized gain (loss) on investments and debt:
Net realized gain (loss) on investments on:
Non-controlled, non-affiliated investments		2,130,958			(12,034,153	)		319,431			1,424,778			2,450,389			(10,609,375	)
Non-controlled and controlled, affiliated investments		(19,708,359	)		—			—			—			(19,708,359	)		—
Net realized loss on investments		(17,577,401	)		(12,034,153	)
Net change in unrealized appreciation on:
Net realized gain (loss) on investments								319,431			1,424,778			(17,257,970	)		(10,609,375	)
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments		76,405,417			17,052,596			11,206,850			(40,710,987	)		87,612,267			(23,658,391	)
Non-controlled and controlled, affiliated investments		17,099,609			6,570,228			21,969,487			(80,260,831	)		39,069,096			(73,690,603	)
Debt appreciation (See Notes 5 and 10)		(13,109,272	)		(2,571,321	)
Net change in unrealized appreciation on investments and debt		80,395,754			21,051,503
Net realized and unrealized gain from investments and debt		62,818,353			9,017,350
Net increase in net assets resulting from operations	$	71,133,751		$	19,202,510
Net increase in net assets resulting from operations per common share (See Note 7)	$	1.06		$	0.29
Debt (appreciation) depreciation (See Notes 5 and 10)								(3,763,322	)		48,946,105			(16,872,593	)		46,374,785
Net change in unrealized appreciation (depreciation) on investments and debt								29,413,015			(72,025,713	)		109,808,770			(50,974,209	)
Net realized and unrealized gain (loss) from investments and debt								29,732,446			(70,600,935	)		92,550,800			(61,583,584	)
Net increase (decrease) in net assets resulting from operations								38,495,118		$	(60,292,703	)	$	109,628,869		$	(41,090,193	)
Net increase (decrease) in net assets resulting from operations per common share (See Note 7)							$	0.57		$	(0.90	)	$	1.64		$	(0.61	)
Net investment income per common share	$	0.12		$	0.15		$	0.13		$	0.15		$	0.25		$	0.31

	Three Months Ended December 31,						Six Months Ended March 31,
	2020			2019			2021			2020
Cash flows used for operating activities:
Net increase in net assets resulting from operations	$	71,133,751		$	19,202,510
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided (used) by operating activities:
Net change in net unrealized appreciation on investments		(93,505,026	)		(23,622,824	)
Net change in unrealized appreciation on debt		13,109,272			2,571,321
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations							$	109,628,869		$	(41,090,193	)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net change in net unrealized (appreciation) depreciation on investments								(126,681,363	)		97,348,994
Net change in unrealized appreciation (depreciation) on debt								16,872,593			(46,374,785	)
Net realized loss on investments		17,577,401			12,034,153			17,257,970			10,609,375
Net accretion of discount and amortization of premium		(391,947	)		(568,692	)		(1,642,623	)		(1,352,104	)
Purchases of investments		(68,209,636	)		(173,691,052	)		(143,007,958	)		(280,494,214	)
Payment-in-kind income		(3,446,716	)		(4,792,602	)		(7,058,327	)		(8,245,142	)
Proceeds from dispositions of investments		102,590,824			31,151,013			167,585,432			47,535,202
Amortization of deferred financing costs		256,315			746,080			688,773			1,037,172
(Increase) decrease in interest receivable		(115,717	)		171,335
Decrease in distribution receivable		304,716			—
Decrease (increase) in interest receivable								89,596			(645,598	)
Increase in distribution receivable								(58,284	)		—
Increase in prepaid expenses and other assets		(543	)		(371,909	)		(902	)		(408,772	)
(Decrease) increase in payable for investments purchased		(5,322,288	)		62,528,206
Increase in interest payable on debt		948,839			2,392,195
Increase in payable for investments purchased								13,120,487			—
(Decrease) increase in interest payable on debt								(15,282	)		1,716,995
(Decrease) increase in base management fee payable, net		(255,209	)		100,950			(87,508	)		239,219
Increase in performance-based incentive fee payable, net		—			744,626			—			1,913,047
Increase in accrued other expenses		364,321			81,881
Net cash provided (used) by operating activities		35,038,357			(71,322,809	)
Increase (decrease) in accrued other expenses								75,205			(410,647	)
Net cash provided by (used in) operating activities								46,766,678			(218,621,451	)
Cash flows from financing activities:
Distributions paid to stockholders		(8,045,413	)		(12,068,119	)		(16,090,826	)		(24,136,238	)
Proceeds from 2024 Notes issuance		—			10,912,500			—			10,912,500
Repayments of SBA debentures		—			(16,500,000	)
Repayments under SBA debentures								(10,000,000	)		(16,500,000	)
Borrowings under BNP Credit Facility		—			48,500,000			—			90,000,000
Repayments under BNP Credit Facility		—			(16,000,000	)		—			(16,000,000	)
Borrowings under Truist Credit Facility		16,292,900			63,000,000			91,564,132			273,000,000
Repayments under Truist Credit Facility		(49,000,000	)		(34,000,000	)		(104,271,232	)		(133,000,000	)
Net cash (used) provided by financing activities		(40,752,513	)		43,844,381
Net decrease in cash and cash equivalents		(5,714,156	)		(27,478,428	)
Net cash (used in) provided by financing activities								(38,797,926	)		184,276,262
Net increase (decrease) in cash equivalents								7,968,752			(34,345,189	)
Effect of exchange rate changes on cash		65,453			69,841			80,742			(43,532	)
Cash and cash equivalents, beginning of period		25,806,002			59,516,236			25,806,002			59,516,236
Cash and cash equivalents, end of period	$	20,157,299		$	32,107,649		$	33,855,496		$	25,127,515
Supplemental disclosure of cash flow information:
Interest paid	$	3,798,977		$	5,727,794		$	9,220,494		$	15,074,416
Taxes paid	$	3,528		$	180,700		$	655,707		$	805,976
Non-cash exchanges and conversions	$	16,515,842		$	47,919,106		$	16,515,842		$	91,204,799

Issuer Name	Maturity / Expiration	Industry	Current Coupon			Basis Point Spread Above Index ⁽⁴⁾		Par / Shares			Cost		Fair Value ⁽³⁾				Maturity / Expiration	Industry	Current Coupon			Basis Point Spread Above Index ⁽⁴⁾		Par / Shares		Cost		Fair Value ⁽³⁾
Investments in Non-Controlled, Non-Affiliated Portfolio Companies—127.4 ^{(1), (2)}
First Lien Secured Debt—65.4%
Investments in Non-Controlled, Non-Affiliated Portfolio Companies—125.0 ^{(1), (2)}																Investments in Non-Controlled, Non-Affiliated Portfolio Companies—125.0 ^{(1), (2)}
First Lien Secured Debt—64.9%																First Lien Secured Debt—64.9%
18 Freemont Street Acquisition, LLC	08/11/2025	Hotels, Motels, Inns and Gaming		9.50	%	1M L+800			8,302,303		$	7,516,678	$	8,219,280			08/11/2025	Hotels, Motels, Inns and Gaming		9.50	%	1M L+800			8,302,303	$	7,545,657	$	8,385,326
Altamira Technologies, LLC (Revolver)	07/24/2025	Aerospace and Defense		7.00	%	3M L+600			50,000			50,000		47,750			07/24/2025	Aerospace and Defense		8.00	%	3M L+700			50,000		50,000		48,125
Altamira Technologies, LLC (Revolver) ⁽⁷⁾	07/24/2025	Aerospace and Defense		—			—		137,500			—		(6,188	)		07/24/2025	Aerospace and Defense		—			—		137,500		—		(5,156	)
American Insulated Glass, LLC	12/21/2023	Building Materials		6.50	%	3M L+550			15,916,651			15,712,234		15,677,901			12/21/2023	Building Materials		6.50	%	3M L+550			15,876,189		15,687,356		15,717,427
Apex Service Partners, LLC	07/31/2025	Personal, Food and Miscellaneous Services		6.25	%	1M L+525			1,339,750			1,339,750		1,339,750			07/31/2025	Personal, Food and Miscellaneous Services		6.25	%	1M L+525			1,335,239		1,335,239		1,335,239
Applied Technical Services, LLC	12/29/2026	Environmental Services		6.75	%	3M L+550			7,500,000			7,331,762		7,331,250			12/29/2026	Environmental Services		6.75	%	3M L+550			7,481,250		7,320,812		7,369,031
Applied Technical Services, LLC ⁽⁷⁾	06/29/2022	Environmental Services		—			—		2,500,000			—		—			06/29/2022	Environmental Services		—			—		2,500,000		—		(9,375	)
Applied Technical Services, LLC (Revolver) ⁽⁷⁾	12/29/2026	Environmental Services		—			—		1,000,000			—		—			12/29/2026	Environmental Services		—			—		1,000,000		—		(15,000	)
Bottom Line Systems, LLC	02/13/2023	Healthcare, Education and Childcare		6.25	%	1M L+550			6,705,463			6,662,572		6,635,727			02/13/2023	Healthcare, Education and Childcare		6.25	%	1M L+550			6,153,097		6,118,932		6,153,097
Broder Bros., Co.	12/02/2022	Consumer Products		9.75	%	3M L+850			25,763,753			25,763,753		23,702,653			12/02/2022	Consumer Products		9.75	%	3M L+850			25,620,085		25,620,673		24,210,981
Compex Legal Services, Inc.	02/09/2026	Business Services		6.75	%	3M L+575			3,596,834			3,533,256		3,487,490			02/09/2026	Business Services		6.75	%	3M L+575			3,587,774		3,526,985		3,469,018
Compex Legal Services, Inc. (Revolver)	02/07/2025	Business Services		6.75	%	3M L+575			458,962			458,962		445,010			02/07/2025	Business Services		6.75	%	3M L+575			458,962		458,962		443,771
Compex Legal Services, Inc. (Revolver) ⁽⁷⁾	02/07/2025	Business Services		—			—		196,698			—		(5,980	)		02/07/2025	Business Services		—			—		196,698		—		(6,511	)
Datalot Inc. (Revolver) ⁽⁷⁾	01/24/2025	Insurance		—			—		1,788,165			—		—			01/24/2025	Insurance		—			—		1,788,165		—		—
DermaRite Industries LLC	03/03/2022	Manufacturing / Basic Industries		8.00	%	1M L+700			8,975,884			8,933,952		8,975,884			03/03/2022	Manufacturing / Basic Industries		7.75	%	1M L+675			8,441,402		8,410,431		8,441,402
DRS Holdings III, Inc. (Revolver) ⁽⁷⁾	11/03/2025	Consumer Products		—			—		1,528,102			—		1,528			11/03/2025	Consumer Products		—			—		1,528,102		—		15,281
ECL Entertainment, LLC																	04/01/2028	Hotels, Motels, Inns and Gaming		8.25	%	1M L+750			8,769,231		8,681,538		8,769,231
ECM Industries, LLC (Revolver)	12/23/2025	Electronics		5.50	%	1M L+450			517,594			517,594		517,594			12/23/2025	Electronics		5.50	%	1M L+450			258,797		258,797		257,503
ECM Industries, LLC (Revolver) ⁽⁷⁾																	12/23/2025	Electronics		—			—		258,797		—		(1,294	)
GCOM Software LLC	11/14/2022	Business Services		7.75	%	1M L+625			1,103,616			1,083,361		1,103,616			11/14/2022	Business Services		7.75	%	1M L+625			1,093,898		1,076,285		1,093,898
Hancock Roofing and Construction L.L.C.	12/31/2026	Insurance		6.25	%	3M L+525			6,000,000			5,850,295		5,850,000			12/31/2026	Insurance		6.25	%	3M L+525			5,985,000		5,842,049		5,835,375
Hancock Roofing and Construction L.L.C.⁽⁷⁾	12/31/2022	Insurance		—			—		1,500,000			—		—			12/31/2022	Insurance		—			—		1,500,000		—		(37,500	)
Hancock Roofing and Construction L.L.C. (Revolver) ⁽⁷⁾	12/31/2026	Insurance		—			—		750,000			—		—			12/31/2026	Insurance		—			—		750,000		—		(18,750	)
HW Holdco, LLC	12/10/2024	Media		5.50	%	3M L+450			2,560,645			2,541,912		2,496,629			12/10/2024	Media		5.50	%	3M L+450			2,554,113		2,536,525		2,503,031
HW Holdco, LLC (Revolver) ⁽⁷⁾	12/10/2024	Media		—			—		3,387,097			—		(84,677	)		12/10/2024	Media		—			—		3,387,097		—		(67,742	)
IMIA Holdings, Inc.	10/26/2025	Aerospace and Defense		7.00	%	3M L+600			5,559,035			5,453,403		5,531,240
Impact Group, LLC	06/27/2023	Personal, Food and Miscellaneous Services		8.37	%	1M L+737			19,835,121			19,765,568		20,033,472			06/27/2023	Personal, Food and Miscellaneous Services		8.37	%	1M L+737			19,675,049		19,611,964		19,871,799
Integrity Marketing Acquisition, LLC	08/27/2025	Insurance		6.50	%	3M L+550			16,625,229			16,507,692		16,043,346			08/27/2025	Insurance		6.75	%	3M L+575			16,583,417		16,473,040		16,334,666
Juniper Landscaping of Florida, LLC	12/22/2021	Personal, Food and Miscellaneous Services		9.50	%	1M L+850			13,145,966			13,078,763		13,145,966			12/22/2021	Personal, Food and Miscellaneous Services		6.50	%	1M L+550			2,775,657		2,762,772		2,775,657
K2 Pure Solutions NoCal, L.P.	12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700			11,890,667			11,776,037		11,682,580			12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700			11,860,333		11,754,642		11,607,707
K2 Pure Solutions NoCal, L.P. (Revolver)	12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700			872,143			872,143		856,880
K2 Pure Solutions NoCal, L.P. (Revolver) ⁽⁷⁾																	12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700			872,143		872,143		853,566
K2 Pure Solutions NoCal, L.P. (Revolver) ⁽⁷⁾	12/20/2023	Chemicals, Plastics and Rubber		—			—		1,065,952			—		(18,654	)		12/20/2023	Chemicals, Plastics and Rubber		—			—		1,065,952		—		(22,705	)
Kentucky Downs, LLC ⁽⁷⁾	03/07/2025	Hotels, Motels, Inns and Gaming		—			—		827,586			—		(10,345	)		03/07/2025	Hotels, Motels, Inns and Gaming		—			—		827,586		—		—
LAV Gear Holdings, Inc.	10/31/2024	Leisure, Amusement, Motion Pictures, Entertainment		8.50	%	1M L+750			761,082			755,016		705,219			10/31/2024	Leisure, Amusement, Motion Pictures, Entertainment		8.50	%	1M L+750			770,596		764,956		714,188
				(PIK 5.00	%)															(PIK 5.00	%)
Lightspeed Buyer Inc.	02/03/2026	Healthcare, Education and Childcare		6.50	%	1M L+550			1,560,293			1,545,716		1,529,087
Lightspeed Buyer Inc. ⁽⁷⁾	08/03/2021	Healthcare, Education and Childcare		—			—		882,075			—		(8,821	)		02/03/2026	Healthcare, Education and Childcare		6.50	%	1M L+550			1,556,373		1,542,426		1,533,027
Lightspeed Buyer Inc. (Revolver)	02/03/2026	Healthcare, Education and Childcare		6.50	%	1M L+550			388,593			388,593		380,822
Lightspeed Buyer Inc. ⁽⁷⁾																	08/03/2021	Healthcare, Education and Childcare		—			—		882,075		—		(4,410	)
Lightspeed Buyer Inc. (Revolver) ⁽⁷⁾																	02/03/2026	Healthcare, Education and Childcare		6.50	%	1M L+550			388,593		388,593		382,765
Lightspeed Buyer Inc. (Revolver) ⁽⁷⁾	02/03/2026	Healthcare, Education and Childcare		—			—		777,187			—		(15,544	)		02/03/2026	Healthcare, Education and Childcare		—			—		777,187		—		(11,658	)
Lombart Brothers, Inc. (Revolver)	04/13/2023	Healthcare, Education and Childcare		9.25	%	1M L+825			1,773,894			1,773,894		1,694,069			04/13/2023	Healthcare, Education and Childcare		9.25	%	1M L+825			1,773,894		1,773,894		1,702,938
				(PIK 1.00	%)
Lombart Brothers, Inc. (Revolver)⁽⁷⁾	04/13/2023	Healthcare, Education and Childcare		—			—		493			—		(22	)
MeritDirect, LLC	05/23/2024	Media		6.50	%	3M L+550			2,868,309			2,837,507		2,753,576			05/23/2024	Media		6.50	%	3M L+550			2,832,036		2,803,736		2,768,315
MeritDirect, LLC (Revolver) ⁽⁷⁾	05/23/2024	Media		—			—		2,518,345			—		(100,734	)		05/23/2024	Media		—			—		2,518,345		—		(56,663	)
Ox Two, LLC	02/27/2023	Building Materials		7.25	%	1M L+625			21,243,821			21,027,529		21,243,821			02/27/2023	Building Materials		7.25	%	1M L+625			21,135,496		20,941,838		21,135,496
Ox Two, LLC (Revolver)(7)	02/27/2023	Building Materials		7.25	%	1M L+625			488,000			488,000		488,000
Ox Two, LLC (Revolver)																	02/27/2023	Building Materials		7.25	%	1M L+625			488,000		488,000		488,000
Ox Two, LLC (Revolver) ⁽⁷⁾	02/27/2023	Building Materials		—			—		2,012,000			—		—			02/27/2023	Building Materials		—			—		2,012,000		—		—
PRA Events, Inc.	08/07/2025	Business Services		11.50	%	3M L+1,050			21,724,506			18,471,025		18,791,698			08/07/2025	Business Services		11.50	%	3M L+1,050			22,349,086		19,095,604		19,723,069
																				(PIK 11.50	%)
PRA Events, Inc. (Revolver)	08/07/2025	Business Services		11.50	%	3M L+1,050			2,258,461			1,920,232		1,953,568			08/07/2025	Business Services		11.50	%	3M L+1,050			2,323,391		1,985,162		2,050,393
																				(PIK 11.50	%)
Questex, LLC	09/09/2024	Media		6.75	%	3M L+575			21,993,750			21,696,449		20,014,313			09/09/2024	Media		6.75	%	3M L+575			21,937,500		21,658,895		19,963,126
Questex, LLC (Revolver)	09/09/2024	Media		6.75	%	3M L+575			2,632,979			2,632,979		2,396,011
Questex, LLC (Revolver) ⁽⁷⁾	09/09/2024	Media		—			—		957,447			—		(86,170	)		09/09/2024	Media		6.75	%	3M L+575			2,632,979		2,632,979		2,396,011
Radius Aerospace, Inc. (Revolver)	03/31/2025	Aerospace and Defense		6.75	%	3M L+575			296,952			296,952		288,578
Questex, LLC (Revolver) ⁽⁷⁾																	09/09/2024	Media		—			—		957,447		—		(86,170	)
Radius Aerospace, Inc. (Revolver) ⁽⁷⁾	03/31/2025	Aerospace and Defense		—			—		1,930,190			—		(54,431	)		03/31/2025	Aerospace and Defense		6.75	%	3M L+575			148,476		148,476		144,289
Rancho Health MSO, Inc.	12/18/2025	Healthcare, Education and Childcare		6.75	%	3M L+575			3,675,000			3,592,994		3,592,313
Radius Aerospace, Inc. (Revolver) ⁽⁷⁾																	03/31/2025	Aerospace and Defense		—			—		2,078,666		—		(58,618	)
Rancho Health MSO, Inc. ⁽⁷⁾																	12/18/2025	Healthcare, Education and Childcare		6.75	%	3M L+575			3,675,000		3,596,984		3,610,688
Rancho Health MSO, Inc. ⁽⁷⁾	12/18/2022	Healthcare, Education and Childcare		—			—		1,050,000			—		—			12/18/2022	Healthcare, Education and Childcare		—			—		1,050,000		—		(18,375	)
Rancho Health MSO, Inc. (Revolver) ⁽⁷⁾	12/18/2025	Healthcare, Education and Childcare		—			—		525,000			—		—			12/18/2025	Healthcare, Education and Childcare		—			—		525,000		—		(9,187	)
Recteq, LLC																	01/29/2026	Consumer Products		7.00	%	3M L+600			10,000,000		9,807,023		9,800,000
Recteq, LLC (Revolver) ⁽⁷⁾																	01/29/2026	Consumer Products		—			—		1,126,761		—		(22,535	)
Research Horizons, LLC	06/28/2022	Media		7.25	%	1M L+625			28,953,547			28,774,350		28,084,940			06/28/2022	Media		7.25	%	1M L+625			28,360,642		28,212,050		27,793,429
Research Now Group, Inc. and Survey Sampling International LLC	12/20/2024	Business Services		6.50	%	3M L+550			2,906,240			2,906,240		2,853,201			12/20/2024	Business Services		6.50	%	3M L+550			2,898,750		2,898,750		2,864,690
Riverpoint Medical, LLC (Revolver) ⁽⁷⁾	06/20/2025	Healthcare, Education and Childcare		—			—		363,636			—		(5,782	)		06/20/2025	Healthcare, Education and Childcare		—			—		363,636		—		(2,218	)
Riverside Assessments, LLC	03/10/2025	Education		8.25	%	3M L+725			16,000,704			15,733,819		15,120,665			03/10/2025	Education		8.25	%	3M L+725			16,291,343		16,039,357		15,598,961
Sales Benchmark Index LLC ⁽⁷⁾	07/07/2021	Business Services		—			—		1,829,268	��		—		(32,012	)
Sales Benchmark Index LLC (Revolver) ⁽⁷⁾	01/03/2025	Business Services		—			—		731,707			—		(12,805	)		01/03/2025	Business Services		—			—		731,707		—		(49,390	)
Sargent & Greenleaf Inc. (Revolver) ⁽⁷⁾	12/20/2024	Electronics		—			—		597,943			—		(7,474	)		12/20/2024	Electronics		—			—		597,943		—		—
Schlesinger Global, Inc.	07/14/2025	Business Services		7.00	%	3M L+600			514,971			509,323		464,761			07/14/2025	Business Services		8.00	%	3M L+700			514,741		509,460		473,561
																				(PIK 1.00	%)
Schlesinger Global, Inc. (Revolver)	07/14/2025	Business Services		7.00	%	3M L+600			15,759			15,759		14,223			07/14/2025	Business Services		8.00	%	3M L+700			15,792		15,792		14,529
																				(PIK 1.00	%)
Schlesinger Global, Inc. (Revolver) ⁽⁷⁾	07/14/2025	Business Services		—			—		22,281			—		(2,172	)		07/14/2025	Business Services		—			—		22,248		—		(1,780	)
Sigma Defense Systems, LLC	12/18/2025	Telecommunications		9.75	%	3M L+875			8,505,000			8,294,518		8,292,375			12/18/2025	Telecommunications		9.75	%	3M L+875			6,602,931		6,448,004		6,470,872
Sigma Defense Systems, LLC ⁽⁷⁾	12/18/2025	Telecommunications		—			—		1,215,000			—		—			12/18/2025	Telecommunications		—			—		950,869		—		(19,017	)
Signature Systems Holding Company - Term Loan II																	12/31/2021	Chemicals, Plastics and Rubber		8.50	%	3M L+750			806,452		794,399		796,371
Signature Systems Holding Company (Revolver)	05/03/2024	Chemicals, Plastics and Rubber		7.50	%	3M L+650			2,016,129			2,016,129		1,970,766			05/03/2024	Chemicals, Plastics and Rubber		7.50	%	3M L+650			2,016,129		2,016,129		1,990,927
Solutionreach, Inc. (Revolver)	01/17/2024	Communications		6.75	%	3M L+575			1,248,750			1,248,750		1,240,009
Solutionreach, Inc. (Revolver) ⁽⁷⁾	01/17/2024	Communications		—			—		416,250			—		(2,914	)		01/17/2024	Communications		—			—		1,665,000		—		—
Spear Education, LLC	02/26/2025	Education		6.50	%	3M L+500			15,011,563			14,874,217		14,636,274			02/26/2025	Education		6.50	%	3M L+500			14,973,750		14,842,822		14,824,012
Spear Education, LLC ⁽⁷⁾	02/26/2022	Education		—			—		6,875,000			—		(171,875	)		02/26/2022	Education		—			—		6,875,000		—		(68,750	)

Issuer Name		Maturity / Expiration		Industry	Current Coupon			Basis Point Spread Above Index ⁽⁴⁾		Par / Shares		Cost		Fair Value ⁽³⁾				Maturity / Expiration		Industry	Current Coupon			Basis Point Spread Above Index ⁽⁴⁾		Par / Shares		Cost		Fair Value ⁽³⁾
Spectacle Gary Holdings, LLC		12/23/2025		Hotels, Motels, Inns and Gaming		11.01	%	1M L+900			21,600,000	$	20,951,480	$	21,600,000			12/23/2025		Hotels, Motels, Inns and Gaming		11.01	%	1M L+900			21,600,000	$	20,976,783	$	23,544,000
TAC LifePort Purchaser, LLC																		03/01/2026		Aerospace and Defense		7.00	%	3M L+600			5,017,306		4,918,140		4,936,927
TAC LifePort Purchaser, LLC (Revolver)																		03/01/2026		Aerospace and Defense		7.00	%	3M L+600			82,041		82,041		80,727
TAC LifePort Purchaser, LLC (Revolver) ⁽⁷⁾																		03/01/2026		Aerospace and Defense		—			—		538,114		—		(8,621	)
TPC Canada Parent, Inc. and TPC US Parent, LLC ⁽⁸^),(¹¹⁾		11/24/2025		Food		6.25	%	3M L+525			1,784,638		1,784,638		1,731,099			11/24/2025		Food		6.25	%	3M L+525			1,780,120		1,780,120		1,726,717
TVC Enterprises, LLC		01/18/2024		Transportation		6.50	%	1M L+550			17,615,084		17,382,676		17,747,197			03/26/2026		Transportation		6.75	%	1M L+575			15,584,153		15,393,349		15,428,312
TVC Enterprises, LLC (Revolver) ⁽⁷⁾		01/18/2024		Transportation		—			—		2,702,151		—		20,266			03/26/2026		Transportation		—			—		2,702,151		—		(27,022	)
TWS Acquisition Corporation		06/16/2025		Education		7.25	%	1M L+625			4,307,692		4,307,692		4,307,692			06/16/2025		Education		7.25	%	1M L+625			4,136,641		4,136,641		4,136,641
TWS Acquisition Corporation (Revolver)		06/16/2025		Education		7.25	%	1M L+625			1,137,857		1,137,857		1,137,857
TWS Acquisition Corporation (Revolver) ⁽⁷⁾		06/16/2025		Education		—			—		505,714		—		—			06/16/2025		Education		—			—		1,643,571		—		—
Tyto Athene, LLC		08/27/2024		Aerospace and Defense		6.25	%	1M L+525			6,012,024		5,985,060		6,012,024			08/27/2024		Aerospace and Defense		6.25	%	1M L+525			6,012,024		5,986,788		6,012,024
Tyto Athene, LLC (New Issue)																		04/01/2028		Aerospace and Defense		6.25	%	1M L+550			10,000,000		9,846,390		9,846,390
Tyto Athene, LLC (New Issue) (Revolver) ⁽⁷⁾																		04/01/2026		Aerospace and Defense		—			—		363,610		—		—
US Med Acquisition, Inc.		02/13/2023		Healthcare, Education and Childcare		9.00	%	1M L+800			8,279,688		8,279,688		8,279,688			02/13/2023		Healthcare, Education and Childcare		8.50	%	1M L+750			8,257,813		8,257,813		8,257,813
Walker Edison Furniture Company LLC		09/26/2024		Home and Office Furnishings		7.25	%	3M L+625			21,375,000		21,082,636		21,375,000			09/26/2024		Home and Office Furnishings		6.75	%	3M L+575			25,000,000		24,375,244		24,375,000
Wildcat Buyerco, Inc.		02/27/2026		Electronics		6.25	%	3M L+525			1,641,087		1,622,408		1,624,676			02/27/2026		Electronics		6.25	%	3M L+525			1,636,953		1,619,108		1,621,484
Wildcat Buyerco, Inc. ⁽⁷⁾		02/27/2022		Electronics		—			—		2,573,529		—		3,217			02/27/2022		Electronics		—			—		2,573,529		—		3,217
Wildcat Buyerco, Inc. (Revolver) ⁽⁷⁾		02/27/2026		Electronics		—			—		551,471		—		(10,037	)		02/27/2026		Electronics		—			—		551,471		—		(8,658	)
Total First Lien Secured Debt	Total First Lien Secured Debt												389,083,813		384,835,914		Total First Lien Secured Debt												402,722,548		402,062,935
Second Lien Secured Debt—22.3%
Second Lien Secured Debt—20.8%
Confie Seguros Holding Co.		10/31/2025		Insurance		8.66	%	3M L+850			14,500,000		14,290,525		14,210,000			10/31/2025		Insurance		8.62	%	3M L+850			14,500,000		14,301,101		14,137,500
Data Axle, Inc.		04/03/2024		Other Media		10.25	%	3M L+925			20,400,000		20,172,871		20,349,000			04/03/2024		Other Media		10.25	%	3M L+925			20,400,000		20,188,954		20,400,000
DecoPac, Inc.		03/31/2025		Beverage, Food and Tobacco		9.25	%	3M L+825			19,627,143		19,394,860		19,627,143			03/31/2025		Beverage, Food and Tobacco		9.25	%	3M L+825			19,627,143		19,406,995		19,627,143
Halo Buyer, Inc.		07/06/2026		Consumer Products		9.25	%	1M L+825			32,500,000		32,074,502		31,606,250			07/06/2026		Consumer Products		9.25	%	1M L+825			32,500,000		32,085,316		31,850,000
Inventus Power, Inc.																		09/29/2024		Electronics		9.50	%	3M L+850			13,500,000		13,230,497		13,230,000
MBS Holdings, Inc.		01/02/2024		Telecommunications		9.50	%	3M L+850			19,623,649		19,379,369		19,427,413			01/02/2024		Telecommunications		9.50	%	3M L+850			19,623,649		19,398,565		19,427,413
QuantiTech LLC																		02/04/2027		Aerospace and Defense		11.00	%	3M L+1,000			150,000		147,119		147,000
VT Topco, Inc.		08/24/2026		Business Services		7.15	%	3M L+700			10,000,000		9,957,230		9,800,000			08/24/2026		Business Services		7.11	%	3M L+700			10,000,000		9,957,809		9,950,000
Winter Park Intermediate, Inc.		04/06/2026		Auto Sector		10.00	%	1M L+900			16,571,800		16,074,821		16,240,363
Total Second Lien Secured Debt	Total Second Lien Secured Debt												131,344,178		131,260,169		Total Second Lien Secured Debt												128,716,356		128,769,056
Subordinated Debt/Corporate Notes—8.9%
Subordinated Debt/Corporate Notes—8.7%																	Subordinated Debt/Corporate Notes—8.7%
Blackhawk Industrial Distribution, Inc.		03/17/2025		Distribution		12.00	%		—		14,122,679		13,923,379		13,910,839			03/17/2025		Distribution		12.00	%		—		14,192,326		14,003,077		13,979,441
						(PIK 2.00	%)															(PIK 2.00	%)
Cascade Environmental LLC		12/30/2023		Environmental Services		13.00	%		—		38,592,330		38,190,220		38,688,811			12/30/2023		Environmental Services		13.00	%		—		39,829,362		39,469,077		40,028,509
						(PIK 13.00	%)															(PIK 13.00	%)
Total Subordinated Debt/Corporate Notes	Total Subordinated Debt/Corporate Notes												52,113,599		52,599,650		Total Subordinated Debt/Corporate Notes												53,472,154		54,007,950
Preferred Equity/Partnership Interests—3.6% ⁽⁶⁾	Preferred Equity/Partnership Interests—3.6% ⁽⁶⁾																Preferred Equity/Partnership Interests—3.6% ⁽⁶⁾
AH Holdings, Inc.			—	Healthcare, Education and Childcare		6.00	%		—		211		500,000		39,574				—	Healthcare, Education and Childcare		6.00	%		—		211		500,000		146,305
Cascade Environmental LLC			—	Environmental Services		16.00	%				178,304		17,607,478		18,661,355				—	Environmental Services		16.00	%				178,304		17,607,478		19,539,097
MeritDirect Holdings, LP ⁽⁹⁾			—	Media		—			—		540		540,000		504,493				—	Media		—			—		540		540,000		597,394
NXOF Holdings, Inc. (Tyto Athene, LLC)			—	Aerospace and Defense		—			—		107		106,823		132,956				—	Aerospace and Defense		—			—		160		159,808		185,151
Signature CR Intermediate Holdco, Inc.			—	Chemicals, Plastics and Rubber		12.00	%		—		1,347		1,346,530		1,544,351				—	Chemicals, Plastics and Rubber		12.00	%		—		1,527		1,527,026		1,662,605
TPC Holding Company, LP ⁽⁸^),(¹¹⁾			—	Food		—			—		219		219,010		243,352				—	Food		—			—		219		219,012		249,437
Total Preferred Equity/Partnership Interests													20,319,841		21,126,081														20,553,324		22,379,989
Common Equity/Partnership Interests/Warrants—27.2% ⁽⁶⁾
Common Equity/Partnership Interests/Warrants—26.9% ⁽⁶⁾																	Common Equity/Partnership Interests/Warrants—26.9% ⁽⁶⁾
Affinion Group Holdings, Inc. (Warrants)		04/10/2024		Consumer Products		—			—		77,190		2,126,399		—			04/10/2024		Consumer Products		—			—		77,190		2,126,399		—
AG Investco LP ⁽⁹⁾			—	Business Services		—			—		805,164		805,164		1,090,798				—	Business Services		—			—		805,164		805,164		1,107,840
AG Investco LP ^{(7), (9)}			—	Business Services		—			—		194,836		—		—				—	Business Services		—			—		194,836		—		—
AH Holdings, Inc. (Warrants)		03/23/2021		Healthcare, Education and Childcare		—			—		753		—		—			03/23/2021		Healthcare, Education and Childcare		—			—		753		—		—
Altamira Intermediate Company II, Inc.			—	Aerospace and Defense		—			—		125,000		125,000		56,992				—	Aerospace and Defense		—			—		125,000		125,000		79,659
ASP LCG Holdings, Inc. (Warrants)		05/05/2026		Education		—			—		933		586,975		2,041,614			05/05/2026		Education		—			—		933		586,975		1,927,258
Cascade Environmental LLC ⁽⁹⁾			—	Environmental Services		—			—		33,901		2,852,080		953,130				—	Environmental Services		—			—		33,901		2,852,080		673,015
CI (Allied) Investment Holdings, LLC			—	Business Services		—			—		120,962		1,243,217		266,395				—	Business Services		—			—		120,962		1,243,217		272,538
(PRA Events, Inc.) ⁽⁹⁾
CI (Summit) Investment Holdings LLC			—	Buildings and Real Estate		—			—		134,180		1,409,866		2,007,660				—	Buildings and Real Estate		—			—		134,180		1,409,866		2,113,202
(SFP Holdings, Inc.)
Cowboy Parent LLC			—	Distribution		—			—		22,500		2,250,000		1,240,386				—	Distribution		—			—		22,500		2,250,000		1,193,867
(Blackhawk Industrial Distribution, Inc.)
DecoPac Holdings Inc.			—	Beverage, Food and Tobacco		—			—		3,449		3,448,658		4,753,541				—	Beverage, Food and Tobacco		—			—		3,449		3,448,658		4,327,101
Delta InvestCo LP (Sigma Defense Systems, LLC) ⁽⁹⁾			—	Telecommunications		—			—		729,000		729,000		729,000				—	Telecommunications		—			—		570,522		570,522		587,029
Delta InvestCo LP (Sigma Defense Systems, LLC) ^{(7), (9)}			—	Telecommunications		—			—		729,000		—		—				—	Telecommunications		—			—		570,522		—		—
ECM Investors, LLC ⁽⁹⁾			—	Electronics		—			—		167,537		167,537		433,628				—	Electronics		—			—		167,537		167,537		437,342
eCommission Holding Corporation ⁽¹¹⁾			—	Financial Services		—			—		80		1,004,625		931,879				—	Financial Services		—			—		80		1,004,625		827,595
Faraday Holdings, LLC			—	Building Materials		—			—		4,277		217,635		1,397,123				—	Building Materials		—			—		4,277		217,635		1,463,248
Gauge Lash Coinvest LLC			—	Consumer Products		—			—		889,376		1,053,800		1,565,301				—	Consumer Products		—			—		889,376		1,053,800		1,669,180
Gauge Schlesinger Coinvest, LLC			—	Business Services		—			—		9		8,896		5,258				—	Business Services		—			—		9		8,896		6,460
Gauge TVC Coinvest, LLC			—	Transportation		—			—		810,645		810,645		1,584,192				—	Transportation		—			—		810,645		—		1,536,698
(TVC Enterprises, LLC)
GCOM InvestCo LP ⁽⁷⁾			—	Business Services		—			—		111,574		—		—				—	Business Services		—			—		111,574		—		—
Go Dawgs Capital III, LP			—	Building Materials		—			—		675,325		675,325		749,610				—	Building Materials		—			—		675,325		675,325		864,416
(American Insulated Glass, LLC) ⁽⁹⁾
Green Veracity Holdings, LP - Class A			—	Business Services		—			—		15,000		1,500,000		3,496,632				—	Business Services		—			—		15,000		1,500,000		3,673,072
(VT Topco, Inc.)
Hancock Claims Consultants Investors, LLC ⁽⁹⁾			—	Insurance		—			—		450,000		450,000		450,000				—	Insurance		—			—		450,000		450,000		494,750
Infogroup Parent Holdings, Inc. (Data Axle, Inc.)			—	Other Media		—			—		181,495		2,040,000		3,129,597				—	Other Media		—			—		181,495		2,040,000		3,146,031
Ironclad Holdco, LLC (Applied Technical Services, LLC) ⁽⁹⁾			—	Environmental Services		—			—		3,960		396,000		396,000				—	Environmental Services		—			—		3,960		396,000		420,230
ITC Rumba, LLC (Cano Health, LLC) ⁽⁹⁾			—	Healthcare, Education and Childcare		—			—		375,675		2,455,540		72,877,813				—	Healthcare, Education and Childcare		—			—		375,675		2,455,540		72,968,079
JWC-WE Holdings, L.P.			—	Home and Office Furnishings		—			—		1,906,433		1,906,433		15,301,281				—	Home and Office Furnishings		—			—		1,906,433		1,906,433		16,744,417
(Walker Edison Furniture Company LLC) ⁽⁹⁾
Kadmon Holdings, Inc. ⁽⁵⁾			—	Healthcare, Education and Childcare		—			—		252,014		2,265,639		1,045,858				—	Healthcare, Education and Childcare		—			—		252,014		2,265,639		980,334

Issuer Name		Maturity / Expiration		Industry	Current Coupon			Basis Point Spread Above Index ⁽⁴⁾		Par / Shares		Cost		Fair Value ⁽³⁾				Maturity / Expiration		Industry	Current Coupon			Basis Point Spread Above Index ⁽⁴⁾		Par / Shares		Cost		Fair Value ⁽³⁾
Kentucky Racing Holdco, LLC (Warrants)			—	Hotels, Motels, Inns and Gaming		—			—		161,252	$	—	$	583,227				—	Hotels, Motels, Inns and Gaming		—			—		161,252	$	—	$	681,840
Lariat ecoserv Co-Invest Holdings, LLC ⁽⁹⁾			—	Environmental Services		—			—		363,656		363,656		627,585				—	Environmental Services		—			—		363,656		363,656		780,007
Lightspeed Investment Holdco LLC			—	Healthcare, Education and Childcare		—			—		273,143		273,143		348,558				—	Healthcare, Education and Childcare		—			—		273,143		273,143		336,625
MeritDirect Holdings, LP ⁽⁹⁾			—	Media		—			—		540		—		—				—	Media		—			—		540		—		—
NEPRT Parent Holdings, LLC (Recteq, LLC) ⁽⁹⁾																			—	Consumer Products		—			—		1,299		1,298,701		1,342,636
NXOF Holdings, Inc.			—	Aerospace and Defense		—			—		2,180		2,180		33,027				—	Aerospace and Defense		—			—		3,261		3,261		25,350
(Tyto Athene, LLC)
OceanSound Discovery Equity, LP			—	Aerospace and Defense		—			—		98,286		982,857		870,197				—	Aerospace and Defense		—			—		98,286		982,857		956,095
(Holdco Sands Intermediate, LLC) ⁽⁹⁾
QuantiTech InvestCo LP ⁽⁹⁾			—	Aerospace and Defense		—			—		70,000		70,000		148,507				—	Aerospace and Defense		—			—		700		65,957		424,767
QuantiTech InvestCo LP ^{(7), (9)}			—	Aerospace and Defense		—			—		96,667		—		—				—	Aerospace and Defense		—			—		967		—		—
QuantiTech InvestCo II LP ⁽⁹⁾																			—	Aerospace and Defense		—			—		40		24,000		24,000
RFMG Parent, LP ⁽⁹⁾			—	Healthcare, Education and Childcare		—			—		1,050,000		1,050,000		1,050,000				—	Healthcare, Education and Childcare		—			—		1,050,000		1,050,000		1,050,000
SBI Holdings Investments LLC			—	Business Services		—			—		36,585		365,854		267,014				—	Business Services		—			—		36,585		365,854		156,798
(Sales Benchmark Index LLC)
Signature CR Intermediate Holdco, Inc.			—	Chemicals, Plastics and Rubber		—			—		71		70,870		51,394				—	Chemicals, Plastics and Rubber		—			—		80		80,370	-
SSC Dominion Holdings, LLC			—	Electronics		—			—		1,500		1,500,000		1,749,600				—	Electronics		—			—		1,500		1,500,000		1,749,600
Class A (US Dominion, Inc.)
SSC Dominion Holdings, LLC			—	Electronics		—			—		1,500		—		5,640,782				—	Electronics		—			—		1,500		—		4,949,724
Class B (US Dominion, Inc.)
TAC LifePort Holdings, LLC ⁽⁹⁾																			—	Aerospace and Defense		—			—		232,558		232,558		232,914
TPC Holding Company, LP^{(8). (11)}			—	Food		—			—		11,527		11,527		60,977				—	Food		—			—		11,527		11,527		98,210
U.S. Well Services, Inc. - Class A ^{(5), (11)}			—	Oil and Gas		—			—		1,261,201		3,021,880		522,516				—	Oil and Gas		—			—		1,261,201		3,021,880		1,311,649
WBB Equity, LLC			—	Aerospace and Defense		—			—		628,571		628,571		3,318,857				—	Aerospace and Defense		—			—		628,571		628,571		3,916,000
(Whitney, Bradley & Brown, Inc.) ⁽⁹⁾
Wheel Pros Holdings, L.P.			—	Auto Sector		—			—		3,778,704		1,129,183		24,663,430				—	Auto Sector		—			—		3,778,704		545,210		26,400,357
(Winter Park Intermediate, Inc.)
Wildcat Parent, LP (Wildcat Buyerco, Inc.)			—	Electronics		—			—		2,314		231,400		325,128				—	Electronics		—			—		2,314		231,400		342,475
ZS Juniper L.P.			—	Personal, Food and Miscellaneous Services		—			—		1,056		1,056,249		3,362,443				—	Personal, Food and Miscellaneous Services		—			—		1,056		1,056,247		4,275,988
(Juniper Landscaping of Florida, LLC) ⁽⁹⁾
Total Common Equity/Partnership Interests/Warrants	Total Common Equity/Partnership Interests/Warrants												41,285,804		160,126,930		Total Common Equity/Partnership Interests/Warrants												41,294,503		166,568,396
Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies	Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies												634,147,235		749,948,744		Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies												646,758,885		773,788,326
Investments in Non-Controlled, Affiliated Portfolio Companies—10.5% ^{(1), (2)}
Investments in Non-Controlled, Affiliated Portfolio Companies—11.5% ^{(1), (2)}																	Investments in Non-Controlled, Affiliated Portfolio Companies—11.5% ^{(1), (2)}
Second Lien Secured Debt—1.7%	Second Lien Secured Debt—1.7%																Second Lien Secured Debt—1.7%
Mailsouth Inc.		04/23/2025		Printing and Publishing		15.00	%		—		10,230,271		10,230,271		10,230,271			04/23/2025		Printing and Publishing		15.00	%		—		10,318,353		10,318,353		10,318,353
						(PIK 15.00	%)															(PIK 15.00	%)
Total Second Lien Secured Debt	Total Second Lien Secured Debt												10,230,271		10,230,271		Total Second Lien Secured Debt												10,318,353		10,318,353
Preferred Equity/Partnership Interests—5.2% ⁽⁶⁾
Preferred Equity/Partnership Interests—5.8% ⁽⁶⁾																	Preferred Equity/Partnership Interests—5.8% ⁽⁶⁾
ETX Energy, LLC⁽⁹⁾			—	Oil and Gas		—			—		61,732		6,173,200		—				—	Oil and Gas		—			—		61,732		6,173,200		—
MidOcean JF Holdings Corp.			—	Distribution		—			—		153,922		15,392,189		30,587,519				—	Distribution		—			—		153,922		15,392,189		36,139,140
Total Preferred Equity/Partnership Interests													21,565,389		30,587,519														21,565,389		36,139,140
Common Equity/Partnership Interests/Warrants—3.6% ⁽⁶⁾
Common Equity/Partnership Interests/Warrants—4.0% ⁽⁶⁾																	Common Equity/Partnership Interests/Warrants—4.0% ⁽⁶⁾
ETX Energy, LLC ⁽⁹⁾			—	Oil and Gas		—			—		1,658,389		29,711,576		—				—	Oil and Gas		—			—		1,658,389		29,711,576		—
ETX Energy Management Company, LLC			—	Oil and Gas		—			—		1,754,104		1,562,020		—				—	Oil and Gas		—			—		1,754,104		1,562,020		—
MidOcean JF Holdings Corp.			—	Distribution		—			—		65,933		24,789,935		4,669,001				—	Distribution		—			—		65,933		24,789,935		7,047,058
MSpark, LLC			—	Printing and Publishing		—			—		51,151		16,515,842		16,515,842				—	Printing and Publishing		—			—		51,151		16,515,842		17,900,097
Total Common Equity/Partnership Interests/Warrants	Total Common Equity/Partnership Interests/Warrants												72,579,373		21,184,843		Total Common Equity/Partnership Interests/Warrants												72,579,373		24,947,155
Total Investments in Non-Controlled, Affiliated Portfolio Companies	Total Investments in Non-Controlled, Affiliated Portfolio Companies												104,375,033		62,002,633		Total Investments in Non-Controlled, Affiliated Portfolio Companies												104,463,115		71,404,648
Investments in Controlled, Affiliated Portfolio Companies—53.5% ^{(1), (2)}
First Lien Secured Debt—6.8%
Investments in Controlled, Affiliated Portfolio Companies—53.3% ^{(1), (2)}																	Investments in Controlled, Affiliated Portfolio Companies—53.3% ^{(1), (2)}
First Lien Secured Debt—6.7%																	First Lien Secured Debt—6.7%
AKW Holdings Limited ^{(8), (10), (11)}		03/13/2024		Healthcare, Education and Childcare		7.00	%	3M L+650		£	29,500,000		40,998,100		40,325,025			03/13/2024		Healthcare, Education and Childcare		7.50	%	3M L+650		£	30,000,000		41,696,550		41,391,000
Total First Lien Secured Debt	Total First Lien Secured Debt												40,998,100		40,325,025		Total First Lien Secured Debt												41,696,550		41,391,000
Second Lien Secured Debt—9.2%
Second Lien Secured Debt—9.0%																	Second Lien Secured Debt—9.0%
PT Network Intermediate Holdings, LLC		11/30/2024		Healthcare, Education and Childcare		11.00	%	3M L+1,000			53,954,516		53,593,620		53,954,516			11/30/2024		Healthcare, Education and Childcare		11.00	%	3M L+1,000			55,471,238		55,136,936		55,471,237
						(PIK 11.00	%)															(PIK 11.00	%)
Total Second Lien Secured Debt	Total Second Lien Secured Debt												53,593,620		53,954,516		Total Second Lien Secured Debt												55,136,936		55,471,237
Subordinated Debt—10.9%
Subordinated Debt—10.4%																	Subordinated Debt—10.4%
PennantPark Senior Loan Fund, LLC ⁽¹¹⁾		07/31/2027		Financial Services		9.00	%	3M L+800			64,154,570		64,154,570		64,154,570			07/31/2027		Financial Services		9.00	%	3M L+800			64,154,570		64,154,571		64,154,571
Total Subordinated Debt	Total Subordinated Debt												64,154,570		64,154,570		Total Subordinated Debt												64,154,571		64,154,571
Preferred Equity—2.1% ⁽⁶⁾	Preferred Equity—2.1% ⁽⁶⁾																Preferred Equity—2.1% ⁽⁶⁾
CI (PTN) Investment Holdings II, LLC			—	Healthcare, Education and Childcare		—			—		36,450		546,750		—				—	Healthcare, Education and Childcare		—			—		36,450		546,750		—
(PT Network, LLC) ⁽⁹⁾
PT Network Intermediate Holdings, LLC ⁽⁹⁾				Healthcare, Education and Childcare		11.00	%	3M L+1,000			833		10,725,000		12,517,380					Healthcare, Education and Childcare		11.00	%	3M L+1,000			833		10,725,000		12,812,316
Total Preferred Equity	Total Preferred Equity												11,271,750		12,517,380		Total Preferred Equity												11,271,750		12,812,316
Common Equity—24.5% ⁽⁶⁾
Common Equity—25.2% ⁽⁶⁾																	Common Equity—25.2% ⁽⁶⁾
AKW Holdings Limited ^{(8), (10), (11)}			—	Healthcare, Education and Childcare		—			—	£	950		132,497		2,757,800				—	Healthcare, Education and Childcare		—			—	£	950		132,497		3,303,354
CI (PTN) Investment Holdings II, LLC			—	Healthcare, Education and Childcare		—			—		333,333		5,000,000		—				—	Healthcare, Education and Childcare		—			—		333,333		5,000,000		—
(PT Network, LLC) ⁽⁹⁾
PennantPark Senior Loan Fund, LLC ⁽¹¹⁾			—	Financial Services		—			—		33,830,005		33,892,823		39,001,305				—	Financial Services		—			—		33,830,005		33,892,823		40,239,290
PT Network Intermediate Holdings, LLC ⁽⁹⁾				Healthcare, Education and Childcare		—			—		621		7,150,000		29,293,501					Healthcare, Education and Childcare		—			—		621		7,157,560		34,989,451
RAM Energy Holdings LLC			—	Energy and Utilities		—			—		180,805		162,708,073		73,135,591				—	Energy and Utilities		—			—		180,805		162,708,073		77,683,350
Total Common Equity	Total Common Equity												208,883,393		144,188,197		Total Common Equity												208,890,953		156,215,445
Total Investments in Controlled, Affiliated Portfolio Companies	Total Investments in Controlled, Affiliated Portfolio Companies												378,901,433		315,139,688		Total Investments in Controlled, Affiliated Portfolio Companies												381,150,760		330,044,569
Total Investments—191.4%													1,117,423,701		1,127,091,065
Cash and Cash Equivalents—3.4%
Total Investments—189.8%																	Total Investments—189.8%												1,132,372,760		1,175,237,543
Cash and Cash Equivalents—5.5%																	Cash and Cash Equivalents—5.5%
BlackRock Federal FD Institutional 30													4,440,224		4,440,224														32,327,289		32,327,289
BNY Mellon Cash Reserve and Cash													15,674,001		15,717,075														1,505,980		1,528,207
Total Cash and Cash Equivalents	Total Cash and Cash Equivalents												20,114,225		20,157,299		Total Cash and Cash Equivalents												33,833,269		33,855,496
Total Investments and Cash Equivalents—194.8%												$	1,137,537,926	$	1,147,248,364
Liabilities in Excess of Other Assets—(94.8%)															(558,451,174	)
Total Investments and Cash Equivalents—195.3%																	Total Investments and Cash Equivalents—195.3%											$	1,166,206,029	$	1,209,093,039
Liabilities in Excess of Other Assets—(95.3%)																	Liabilities in Excess of Other Assets—(95.3%)														(589,846,144	)
Net Assets—100.0%	Net Assets—100.0%													$	588,797,190		Net Assets—100.0%													$	619,246,895

Issuer Name	Maturity / Expiration	Industry	Current Coupon				Basis Point Spread Above Index ⁽⁴⁾		Par / Shares		Cost		Fair Value ⁽³⁾
Investments in Non-Controlled, Non-Affiliated Portfolio Companies—139.9 ^{(1), (2)}
First Lien Secured Debt—76.5%
18 Freemont Street Acquisition, LLC	08/11/2025	Hotels, Motels, Inns and Gaming		9.50	%		1M L+800			8,302,303	$	7,543,090	$	7,887,188
Altamira Technologies, LLC (Revolver)	07/24/2025	Aerospace and Defense		7.00	%		3M L+600			125,000		125,000		120,625
Altamira Technologies, LLC (Revolver) ⁽⁷⁾	07/24/2025	Aerospace and Defense		—				—		62,500		—		(2,188	)
American Insulated Glass, LLC	12/21/2023	Building Materials		6.50	%		3M L+550			15,957,113		15,736,757		15,637,971
Apex Service Partners, LLC	07/31/2025	Personal, Food and Miscellaneous Services		6.25	%		1M L+525			178,844		178,844		173,479
Apex Service Partners, LLC ⁽⁷⁾	07/31/2021	Personal, Food and Miscellaneous Services		—				—		1,165,420		—		(34,963	)
Bottom Line Systems, LLC	02/13/2023	Healthcare, Education and Childcare		6.25	%		1M L+550			6,722,525		6,674,529		6,580,680
Broder Bros., Co.	12/02/2022	Consumer Products		9.75	%		3M L+850			25,907,420		25,907,420		23,510,984
Compex Legal Services, Inc.	02/09/2026	Business Services		6.75	%		3M L+575			3,605,894		3,539,582		3,539,906
Compex Legal Services, Inc. ⁽⁷⁾	02/08/2021	Business Services		—				—		1,549,743		—		(12,863	)
Compex Legal Services, Inc. (Revolver)	02/07/2025	Business Services		6.75	%		3M L+575			458,962		458,962		450,563
Compex Legal Services, Inc. (Revolver) ⁽⁷⁾	02/07/2025	Business Services		—				—		196,698		—		(3,600	)
Datalot Inc. (Revolver)	01/24/2025	Insurance		6.25	%		3M L+525			1,788,165		1,788,165		1,790,310
DermaRite Industries LLC	03/03/2022	Manufacturing / Basic Industries		8.00	%		1M L+700			8,975,884		8,924,948		8,975,884
DRS Holdings III, Inc. (Revolver) ⁽⁷⁾	11/03/2025	Consumer Products		—				—		1,528,102		—		(27,964	)
ECM Industries, LLC (Revolver)	12/23/2025	Electronics		5.50	%		1M L+450			517,594		517,594		510,761
HW Holdco, LLC	12/10/2024	Media		5.50	%		3M L+450			2,567,177		2,547,350		2,490,162
HW Holdco, LLC (Revolver) ⁽⁷⁾	12/10/2024	Media		—				—		3,387,097		—		(101,613	)
IMIA Holdings, Inc.	10/26/2025	Aerospace and Defense		7.00	%		3M L+600			5,572,968		5,461,508		5,517,238
Impact Group, LLC	06/27/2023	Personal, Food and Miscellaneous Services		8.37	%		1M L+737			19,888,478		19,811,644		19,987,920
Integrity Marketing Acquisition, LLC	08/27/2025	Insurance		6.50	%		3M L+550			23,574,241		23,403,071		23,338,498
Integrity Marketing Acquisition, LLC ⁽⁷⁾	07/15/2021	Insurance		—				—		592,800		—		(1,482	)
Juniper Landscaping of Florida, LLC	12/22/2021	Personal, Food and Miscellaneous Services		9.50	%		1M L+850			13,516,275		13,430,024		13,516,275
K2 Pure Solutions NoCal, L.P.	12/20/2023	Chemicals, Plastics and Rubber		8.00	%		1M L+700			11,921,000		11,797,407		11,658,738
K2 Pure Solutions NoCal, L.P. (Revolver)	12/20/2023	Chemicals, Plastics and Rubber		8.00	%		1M L+700			1,453,571		1,453,571		1,421,593
K2 Pure Solutions NoCal, L.P. (Revolver) ⁽⁷⁾	12/20/2023	Chemicals, Plastics and Rubber		—				—		484,524		—		(10,660	)
Kentucky Downs, LLC ⁽⁷⁾	03/07/2025	Hotels, Motels, Inns and Gaming		—				—		827,586		—		(12,414	)
LAV Gear Holdings, Inc.	10/31/2024	Leisure, Amusement, Motion Pictures, Entertainment		8.50	%		1M L+750			751,480		744,986		692,188
				(PIK 5.00	%)
Lightspeed Buyer Inc.	02/03/2026	Healthcare, Education and Childcare		6.25	%		1M L+525			1,564,213		1,548,989		1,544,661
Lightspeed Buyer Inc. ⁽⁷⁾	08/03/2021	Healthcare, Education and Childcare		—				—		882,075		—		(2,205	)
Lightspeed Buyer Inc. (Revolver)	02/03/2026	Healthcare, Education and Childcare		6.75	%		1M L+575			1,165,780		1,165,780		1,151,208
Lombart Brothers, Inc. (Revolver)	04/13/2023	Healthcare, Education and Childcare		7.25	%		1M L+625			1,769,912		1,769,912		1,661,947
MeritDirect, LLC	05/23/2024	Media		6.50	%		3M L+550			2,901,820		2,868,498		2,763,983
MeritDirect, LLC (Revolver) ⁽⁷⁾	05/23/2024	Media		—				—		2,518,345		—		(119,621	)
Ox Two, LLC	02/27/2023	Building Materials		7.25	%		1M L+625			21,352,147		21,112,545		21,245,386
Ox Two, LLC (Revolver)	02/27/2023	Building Materials		7.25	%		1M L+625			488,000		488,000		485,560
Ox Two, LLC (Revolver) ⁽⁷⁾	02/27/2023	Building Materials		—				—		2,012,000		—		(10,060	)
Peninsula Pacific Entertainment LLC	11/13/2024	Hotels, Motels, Inns and Gaming		7.40	%		3M L+725			11,437,714		11,219,222		10,637,074
PRA Events, Inc.	08/08/2022	Business Services		—		⁽⁶⁾		—		19,180,820		18,839,885		16,150,251
PRA Events, Inc. (Revolver)	08/08/2022	Business Services		—		⁽⁶⁾		—		2,000,000		2,000,000		1,684,000
Provation Medical, Inc.	03/11/2024	Electronics		7.15	%		3M L+700			26,527,500		26,094,813		26,179,990
Questex, LLC	09/09/2024	Media		6.75	%		3M L+575			22,050,000		21,733,659		20,286,000
Questex, LLC (Revolver)	09/09/2024	Media		6.75	%		3M L+575			1,795,213		1,795,213		1,651,596
Questex, LLC (Revolver) ⁽⁷⁾	09/09/2024	Media		—				—		1,795,213		—		(143,617	)
Radius Aerospace, Inc. (Revolver)	03/31/2025	Aerospace and Defense		6.75	%		3M L+575			1,336,285		1,336,285		1,298,602
Radius Aerospace, Inc. (Revolver) ⁽⁷⁾	03/31/2025	Aerospace and Defense		—				—		890,857		—		(25,122	)
Research Horizons, LLC	06/28/2022	Media		7.25	%		1M L+625			29,546,453		29,334,375		28,364,595
Research Now Group, Inc. and Survey Sampling International LLC	12/20/2024	Business Services		6.50	%		3M L+550			2,913,731		2,913,731		2,752,019
Riverpoint Medical, LLC (Revolver) ⁽⁷⁾	06/20/2025	Healthcare, Education and Childcare		—				—		363,636		—		(12,764	)
Riverside Assessments, LLC	03/10/2025	Education		6.75	%		3M L+575			15,671,250		15,389,332		14,848,509
Sargent & Greenleaf Inc. (Revolver) ⁽⁷⁾	12/20/2024	Electronics		—				—		597,943		—		(10,763	)
Sales Benchmark Index LLC ⁽⁷⁾	07/07/2021	Business Services		—				—		1,829,268		—		(43,902	)
Sales Benchmark Index LLC (Revolver) ⁽⁷⁾	01/03/2025	Business Services		—				—		731,707		—		(17,561	)
Schlesinger Global, Inc.	07/14/2025	Business Services		7.00	%		3M L+600			516,273		510,389		478,844
Schlesinger Global, Inc. (Revolver)	07/14/2025	Business Services		7.00	%		3M L+600			15,759		15,759		14,617
Schlesinger Global, Inc. (Revolver) ⁽⁷⁾	07/14/2025	Business Services		—				—		22,281		—		(1,615	)
Signature Systems Holding Company (Revolver)	05/03/2024	Chemicals, Plastics and Rubber		7.50	%		3M L+650			1,129,032		1,129,032		1,092,339
Signature Systems Holding Company (Revolver)⁽⁷⁾	05/03/2024	Chemicals, Plastics and Rubber		—				—		887,097		—		(28,831	)
Solutionreach, Inc. (Revolver)	01/17/2024	Communications		6.75	%		3M L+575			1,248,750		1,248,750		1,235,014
Solutionreach, Inc. (Revolver) ⁽⁷⁾	01/17/2024	Communications		—				—		416,250		—		(4,579	)
Spear Education, LLC	02/26/2025	Education		6.50	%		3M L+500			15,049,375		14,906,170		14,673,140
Spear Education, LLC ⁽⁷⁾	02/26/2022	Education		—				—		6,875,000		—		(171,875	)

Issuer Name	Maturity / Expiration		Industry	Current Coupon				Basis Point Spread Above Index ⁽⁴⁾		Par / Shares		Cost		Fair Value ⁽³⁾
Spectacle Gary Holdings, LLC	12/23/2025		Hotels, Motels, Inns and Gaming		11.00	%		1M L+900			20,478,378	$	19,804,843	$	19,864,027
Spectacle Gary Holdings, LLC ⁽⁷⁾	12/23/2025		Hotels, Motels, Inns and Gaming		—				—		1,121,622		—		(33,649	)
TPC Canada Parent, Inc. and TPC US Parent, LLC ⁽⁸^),(¹¹⁾	11/24/2025		Food		6.25	%		3M L+525			1,789,156		1,789,156		1,735,482
TVC Enterprises, LLC	01/18/2024		Transportation		6.50	%		1M L+550			17,660,607		17,410,805		17,528,153
TVC Enterprises, LLC (Revolver) ⁽⁷⁾	01/18/2024		Transportation		—				—		2,702,151		—		(20,267	)
TWS Acquisition Corporation (Revolver)	06/16/2025		Education		7.25	%		1M L+625			1,137,857		1,137,857		1,115,100
TWS Acquisition Corporation (Revolver) ⁽⁷⁾	06/16/2025		Education		—				—		505,714		—		(10,114	)
Tyto Athene, LLC	08/27/2024		Aerospace and Defense		6.25	%		1M L+525			6,027,680		5,998,741		6,008,392
US Med Acquisition, Inc.	08/13/2021		Healthcare, Education and Childcare		9.00	%		1M L+800			8,301,563		8,301,563		8,218,547
Walker Edison Furniture Company LLC	09/26/2024		Home and Office Furnishings		7.25	%		3M L+625			21,515,625		21,203,376		21,515,625
Wildcat Buyerco, Inc.	02/27/2026		Electronics		6.50	%		3M L+550			9,145,221		8,970,259		9,053,770
Wildcat Buyerco, Inc. ⁽⁷⁾	02/27/2022		Electronics		—				—		2,573,529		—		3,217
Wildcat Buyerco, Inc. (Revolver) ⁽⁷⁾	02/27/2026		Electronics		—				—		551,471		—		(10,037	)
Total First Lien Secured Debt													412,081,391		402,168,282
Second Lien Secured Debt—32.0%
Confie Seguros Holding Co.	10/31/2025		Insurance		8.66	%		3M L+850			14,500,000		14,281,633		13,920,000
DecoPac, Inc.	03/31/2025		Beverage, Food and Tobacco		9.25	%		3M L+825			19,627,143		19,382,758		19,627,143
Halo Buyer, Inc.	07/06/2026		Consumer Products		9.25	%		1M L+825			32,500,000		32,062,567		31,460,000
Infogroup, Inc.	04/03/2024		Other Media		10.25	%		3M L+925			20,400,000		20,157,649		20,145,000
MailSouth, Inc.	10/23/2024		Printing and Publishing		—		⁽⁶⁾		—		36,828,975		36,224,201		18,782,777
MBS Holdings, Inc.	01/02/2024		Telecommunications		9.59	%		1M L+850			19,623,649		19,359,314		19,329,294
VT Topco, Inc.	08/24/2026		Business Services		7.15	%		3M L+700			10,000,000		9,956,408		9,800,000
Winter Park Intermediate, Inc.	04/06/2026		Auto Sector		8.65	%		1M L+850			35,300,000		34,816,687		35,300,000
Total Second Lien Secured Debt													186,241,217		168,364,214
Subordinated Debt/Corporate Notes—9.6%
Blackhawk Industrial Distribution, Inc.	03/17/2025		Distribution		12.00	%			—		14,051,843		13,842,572		13,665,417
					(PIK 2.00	%)
Cascade Environmental LLC	12/30/2023		Environmental Services		13.00	%			—		37,371,131		36,938,019		36,903,992
					(PIK 13.00	%)
Total Subordinated Debt/Corporate Notes													50,780,591		50,569,409
Preferred Equity/Partnership Interests—4.1% ⁽⁶⁾
AH Holdings, Inc.		—	Healthcare, Education and Childcare		6.00	%			—		211		500,000		167,083
Cascade Environmental LLC		—	Environmental Services		16.00	%					178,304		17,607,478		17,652,053
Condor Holdings Limited ^{(8), (11)}		—	Business Services		—				—		556,000		64,277		71,233
Condor Top Holdco Limited ^{(8), (11)}		—	Business Services		—				—		556,000		491,723		1,308,363
MeritDirect Holdings, LP ⁽⁹⁾		—	Media		—				—		540		540,000		357,199
NXOF Holdings, Inc. (Tyto Athene, LLC)		—	Aerospace and Defense		—				—		107		106,823		129,098
Signature CR Intermediate Holdco, Inc.		—	Chemicals, Plastics and Rubber		12.00	%			—		1,347		1,346,530		1,409,711
TPC Holding Company, LP ⁽⁸^),(¹¹⁾		—	Food		—				—		219		219,010		237,288
Total Preferred Equity/Partnership Interests													20,875,841		21,332,028
Common Equity/Partnership Interests/Warrants—17.7% ⁽⁶⁾
Affinion Group Holdings, Inc. (Warrants)	04/10/2024		Consumer Products		—				—		77,190		2,126,399		—
AG Investco LP ⁽⁹⁾		—	Business Services		—				—		805,164		805,164		1,002,599
AG Investco LP ^{(7), (9)}		—	Business Services		—				—		194,836		—		—
AH Holdings, Inc. (Warrants)	03/23/2021		Healthcare, Education and Childcare		—				—		753		—		—
Altamira Intermediate Company II, Inc.		—	Aerospace and Defense		—				—		125,000		125,000		81,148
ASP LCG Holdings, Inc. (Warrants)	05/05/2026		Education		—				—		933		586,975		2,236,540
Cascade Environmental LLC ⁽⁹⁾		—	Environmental Services		—				—		33,901		2,852,080		696,346
CI (Allied) Investment Holdings, LLC		—	Business Services		—				—		120,962		1,243,217		—
(PRA Events, Inc.) ⁽⁹⁾
CI (Summit) Investment Holdings LLC		—	Buildings and Real Estate		—				—		122,870		1,270,646		1,647,095
(SFP Holdings, Inc.)
Cowboy Parent LLC		—	Distribution		—				—		22,500		2,250,000		1,165,785
(Blackhawk Industrial Distribution, Inc.)
DecoPac Holdings Inc.		—	Beverage, Food and Tobacco		—				—		3,449		3,448,658		5,072,041
ECM Investors, LLC ⁽⁹⁾		—	Electronics								167,537		167,537		254,307
eCommission Holding Corporation ⁽¹¹⁾		—	Financial Services		—				—		80		1,004,625		1,029,685
Faraday Holdings, LLC		—	Building Materials		—				—		4,277		217,635		1,408,259
Gauge Lash Coinvest LLC		—	Consumer Products		—				—		889,376		1,053,800		1,565,301
Gauge Schlesinger Coinvest, LLC		—	Business Services		—				—		9		8,896		8,662
Gauge TVC Coinvest, LLC		—	Transportation		—				—		810,645		810,645		999,520
(TVC Enterprises, LLC)
GCOM InvestCo LP ⁽⁷⁾		—	Business Services		—				—		111,574		—		—
Go Dawgs Capital III, LP		—	Building Materials		—				—		675,325		675,325		675,325
(American Insulated Glass, LLC) ⁽⁹⁾
Green Veracity Holdings, LP - Class A		—	Business Services		—				—		15,000		1,500,000		2,886,104
(VT Topco, Inc.)
Infogroup Parent Holdings, Inc.		—	Other Media		—				—		181,495		2,040,000		2,522,594
ITC Rumba, LLC (Cano Health, LLC) ⁽⁹⁾		—	Healthcare, Education and Childcare		—				—		375,675		4,317,307		18,761,506
JWC-WE Holdings, L.P.		—	Home and Office Furnishings		—				—		1,906,433		1,906,433		12,010,531
(Walker Edison Furniture Company LLC) ⁽⁹⁾
Kadmon Holdings, Inc. ⁽⁵⁾		—	Healthcare, Education and Childcare		—				—		252,014		2,265,639		987,895

Issuer Name	Maturity / Expiration		Industry	Current Coupon			Basis Point Spread Above Index ⁽⁴⁾		Par / Shares		Cost		Fair Value ⁽³⁾
Kentucky Racing Holdco, LLC (Warrants)		—	Hotels, Motels, Inns and Gaming		—			—		161,252	$	—	$	417,910
Lariat ecoserv Co-Invest Holdings, LLC ⁽⁹⁾		—	Environmental Services		—			—		363,656		363,656		593,924
Lightspeed Investment Holdco LLC		—	Healthcare, Education and Childcare		—			—		273,143		273,143		313,596
MeritDirect Holdings, LP ⁽⁹⁾		—	Media		—			—		540		—		—
NXOF Holdings, Inc.		—	Aerospace and Defense		—			—		2,180		2,180		5,432
(Tyto Athene, LLC)
OceanSound Discovery Equity, LP		—	Aerospace and Defense		—			—		98,286		982,857		987,611
(Holdco Sands Intermediate, LLC) ⁽⁹⁾
QuantiTech InvestCo LP ⁽⁹⁾		—	Aerospace and Defense		—			—		70,000		70,000		103,995
QuantiTech InvestCo LP ^{(7), (9)}		—	Aerospace and Defense		—			—		96,667		—		—
SBI Holdings Investments LLC		—	Business Services		—			—		36,585		365,854		259,298
(Sales Benchmark Index LLC)
Signature CR Intermediate Holdco, Inc.		—	Chemicals, Plastics and Rubber		—			—		71		70,870		—
SSC Dominion Holdings, LLC		—	Electronics		—			—		1,500		1,500,000		1,749,600
Class A (US Dominion, Inc.)
SSC Dominion Holdings, LLC		—	Electronics		—			—		1,500		—		4,756,165
Class B (US Dominion, Inc.)
TPC Holding Company, LP^{(8). (11)}		—	Food		—			—		11,527		11,527		56,482
U.S. Well Services, Inc. - Class A ^{(5), (11)}		—	Oil and Gas		—			—		1,261,201		3,021,880		341,029
WBB Equity, LLC		—	Aerospace and Defense		—			—		628,571		628,571		2,753,143
(Whitney, Bradley & Brown, Inc.) ⁽⁹⁾
Wheel Pros Holdings, L.P.		—	Auto Sector		—			—		3,778,704		4,450,000		23,022,380
(Winter Park Intermediate, Inc.)
Wildcat Parent, LP (Wildcat Buyerco, Inc.)		—	Electronics		—			—		2,314		231,400		254,847
ZS Juniper L.P.		—	Personal, Food and Miscellaneous Services		—			—		1,056		1,056,250		2,614,078
(Juniper Landscaping of Florida, LLC) ⁽⁹⁾
Total Common Equity/Partnership Interests/Warrants												43,704,169		93,240,733
Total Investments in Non-Controlled, Non-Affiliated Portfolio Companies												713,683,209		735,674,666
Investments in Non-Controlled, Affiliated Portfolio Companies—5.3% ^{(1), (2)}
Preferred Equity/Partnership Interests—5.1% ⁽⁶⁾
ETX Energy, LLC⁽⁹⁾		—	Oil and Gas		—			—		61,732		6,173,200		5,055,851
MidOcean JF Holdings Corp.		—	Distribution		—			—		153,922		15,392,189		21,795,244
Total Preferred Equity/Partnership Interests												21,565,389		26,851,095
Common Equity/Partnership Interests/Warrants—0.2% ⁽⁶⁾
ETX Energy, LLC ⁽⁹⁾		—	Oil and Gas		—			—		1,658,389		29,711,576		—
ETX Energy Management Company, LLC		—	Oil and Gas		—			—		1,754,104		1,562,020		—
MidOcean JF Holdings Corp.		—	Distribution		—			—		65,933		24,789,935		902,798
Total Common Equity/Partnership Interests/Warrants												56,063,531		902,798
Total Investments in Non-Controlled, Affiliated Portfolio Companies												77,628,920		27,753,893
Investments in Controlled, Affiliated Portfolio Companies—60.6% ^(1), (2)
First Lien Secured Debt—7.0%
AKW Holdings Limited ^{(8), (10), (11)}	03/13/2024		Healthcare, Education and Childcare		6.50	%	3M L+600		£	28,500,000		39,682,375		36,844,800
Total First Lien Secured Debt												39,682,375		36,844,800
Second Lien Secured Debt—10.0%
PT Network Intermediate Holdings, LLC	11/30/2024		Healthcare, Education and Childcare		11.00	%	3M L+1,000			52,479,266		52,094,291		52,479,266
					(PIK 11.00	%)
Total Second Lien Secured Debt												52,094,291		52,479,266
Subordinated Debt—12.0%
PennantPark Senior Loan Fund, LLC ⁽¹¹⁾	07/31/2027		Financial Services		9.00	%	3M L+800			63,000,000		63,000,000		63,000,000
Total Subordinated Debt												63,000,000		63,000,000
Preferred Equity—2.3% ⁽⁶⁾
CI (PTN) Investment Holdings II, LLC		—	Healthcare, Education and Childcare		—			—		36,450		546,750		—
(PT Network, LLC) ⁽⁹⁾
PT Network Intermediate Holdings, LLC ⁽⁹⁾			Healthcare, Education and Childcare		11.00	%	3M L+1,000			833		10,725,000		12,215,888
Total Preferred Equity												11,271,750		12,215,888
Common Equity—29.3% ⁽⁶⁾
AKW Holdings Limited ^{(8), (10), (11)}		—	Healthcare, Education and Childcare		—			—	£	950		132,497		927,315
CI (PTN) Investment Holdings II, LLC		—	Healthcare, Education and Childcare		—			—		333,333		5,000,000		—
(PT Network, LLC) ⁽⁹⁾
PennantPark Senior Loan Fund, LLC ⁽¹¹⁾		—	Financial Services		—			—		33,221,176		33,221,176		36,262,577
PT Network Intermediate Holdings, LLC ⁽⁹⁾			Healthcare, Education and Childcare		—			—		621		7,150,000		26,689,495
RAM Energy Holdings LLC		—	Energy and Utilities		—			—		180,805		162,708,073		89,923,518
Total Common Equity												208,211,746		153,802,905
Total Investments in Controlled, Affiliated Portfolio Companies												374,260,162		318,342,859
Total Investments—205.8%												1,165,572,291		1,081,771,418
Cash and Cash Equivalents—4.9%
BlackRock Federal FD Institutional 30												2,277,244		2,277,244
BNY Mellon Cash Reserve and Cash												23,523,843		23,528,758
Total Cash and Cash Equivalents												25,801,087		25,806,002
Total Investments and Cash Equivalents—210.7%											$	1,191,373,378	$	1,107,577,420
Liabilities in Excess of Other Assets—(110.7%)														(581,868,568	)
Net Assets—100.0%													$	525,708,852

PennantPark Investment Corporation was organized as a Maryland corporation in January 2007. We are a closed-end, externally managed, non-diversified investment company that has elected to be treated as a BDC under the 1940 Act. Our investment objectives are to generate both current income and capital appreciation while seeking to preserve capital through debt and equity investments. We invest primarily in U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, and subordinated debt and, to a lesser extent, equity investments. On April 24, 2007, we closed our initial public offering and our common stock trades on the Nasdaq Global Select Market under the symbol “PNNT.”

We have entered into an investment management agreement, or the Investment Management Agreement, with the Investment Adviser, an external adviser that manages our day-to-day operations. PennantPark Investment, through the Investment Adviser, manages the day-to-day operations of, and provides investment advisory services to, SBIC II under a separate investment management agreement. We have also entered into an administration agreement, or the Administration Agreement, with the Administrator, which provides the administrative services necessary for us to operate. PennantPark Investment, through the Administrator, also provides similar services to SBIC II under a separate administration agreement. See Note 3.

SBIC II, our wholly owned subsidiary, was organized as a Delaware limited partnership in 2012. SBIC II received a license from the SBA to operate as a SBIC under Section 301(c) of the 1958 Act. SBIC II’s objectives are to generate both current income and capital appreciation through debt and equity investments generally by investing with us in ~~SBA eligible~~SBA-eligible businesses that meet the investment selection criteria used by PennantPark Investment.

Funding I, a wholly-owned subsidiary and a special purpose entity of the Company prior to July 31, 2020, was organized in Delaware as a limited liability company in February 2019. We formed Funding I in order to establish the BNP Credit Facility. The Investment Adviser serves as the servicer to Funding I and, prior to deconsolidation, had irrevocably directed that the management fee owed to it with respect to such services be paid to us so long as the Investment Adviser remains the servicer. This arrangement did not increase our consolidated management fee. The BNP Credit Facility allows Funding I to borrow up to $275 million at LIBOR (or an alternative risk-free floating interest rate index) plus 260 basis points during the reinvestment period. The BNP Credit Facility is secured by all of the assets held by Funding I. Funding I is no longer a subsidiary of PennantPark Investment as result of the joint venture described below.

On July 31, 2020, we and certain entities and managed accounts of the private credit investment manager of Pantheon Ventures (UK) LLP, ~~(“Pantheon”)~~or Pantheon, entered into a limited liability company agreement to co-manage PSLF, a newly-formed unconsolidated joint venture. In connection with this transaction, we contributed in-kind our formerly wholly-owned subsidiary, Funding I. As a result of this transaction, Funding I became a wholly-owned subsidiary of PSLF and has been deconsolidated from our financial statements. PSLF invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSLF was formed as a Delaware limited liability company. See Note 4.

We have formed and expect to continue to form certain Taxable Subsidiaries, which are subject to tax as corporations. These Taxable Subsidiaries allow us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code.

We are operated by a person who has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act and, therefore, is not subject to registration or regulation as a commodity pool operator under the Commodity Exchange Act.

The preparation of our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of income and expenses during the reported periods. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Changes in the economic and regulatory environment, financial markets, the credit worthiness of our portfolio companies, the global outbreak of the novel coronavirus (“COVID-19”), and any other parameters used in determining these estimates and assumptions could cause actual results to differ from ~~these~~such estimates and assumptions. We may reclassify certain prior period amounts to conform to the current period presentation. We have eliminated all intercompany balances and transactions. References to the Financial Accounting Standards Board’s, or FASB’s, Accounting Standards Codification, as amended, or ASC, serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the Consolidated Financial Statements are issued.

Our Consolidated Financial Statements are prepared in accordance with GAAP, consistent with ASC Topic 946, Financial Services – Investment Companies, and pursuant to the requirements for reporting on Form 10-K/Q and Articles 6, 10 and 12 of Regulation S-X, as appropriate. In accordance with Article 6-09 of Regulation S-X, we have provided a Consolidated Statement of Changes in Net Assets in lieu of a Consolidated Statement of Changes in Stockholders’ Equity.

We expect that there may not be readily available market values for many of the investments which are or will be in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our board of directors using a documented valuation policy and a consistently applied valuation process, as described in this Report. With respect to investments for which there is no readily available market value, the factors that our board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the difference may be material. See Note 5.

Our portfolio generally consists of illiquid securities, including debt and equity investments. With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, our board of directors undertakes a multi-step valuation process each quarter, as described below:

Our board of directors generally uses market quotations to assess the value of our investments for which market quotations are readily available. We obtain these market values from independent pricing services or at the bid prices obtained from at least two brokers or dealers, if available, or otherwise from a principal market maker or a primary market dealer. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If our board of directors has a bona fide reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.

~~(b)Security Transactions, Revenue Recognition, and Realized/Unrealized Gains or Losses~~

Security transactions are recorded on a trade-date basis. We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized, but considering prepayment penalties. Net change in unrealized appreciation or depreciation reflects, as applicable, the change in the fair values of our portfolio investments and the Credit Facilities during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount, or OID, market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. We record prepayment penalties earned on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or if there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current. As of ~~December~~March 31, ~~2020,~~ 2021, we did not have any portfolio companies on ~~non-accrual~~.non-accrual. As of September 30, 2020, we had two portfolio companies on non-accrual, representing 4.9% and 3.4% of our overall portfolio on a cost and fair value basis, respectively.

We have complied with the requirements of Subchapter M of the Code and have qualified to be treated as a RIC for federal income tax purposes. In this regard, we account for income taxes using the asset and liability method prescribed by ASC Topic 740, Income Taxes, or ASC 740. Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Based upon our qualification and election to be treated as a RIC for U.S. federal income tax purposes, we typically do not incur material U.S. federal income taxes. However, we may choose to retain a portion of our calendar year income, which may result in the imposition of a U.S. federal excise tax. Additionally, certain of the Company’s consolidated subsidiaries are subject to U.S. federal and state income taxes. For the three and six months ended ~~December~~March 31, ~~2020 and 2019,~~2021, we recorded a provision for taxes of $0.2 million and $0.3 million (approximately one-half of which was for U.S. federal excise tax and the remainder for U.S. federal and state income taxes and franchise taxes related to the Taxable Subsidiaries), respectively. For the three and six months ended March 31, 2020, we recorded a provision for taxes of $0.3 million and $0.6 million (approximately one-half of which was for U.S. federal excise tax and the remainder for U.S. federal and state income taxes and franchise taxes related to the Taxable Subsidiaries), respectively.

We recognize the effect of a tax position in our Consolidated Financial Statements in accordance with ASC 740 when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the applicable tax authority. Tax positions not considered to satisfy the “more-likely-than-not” threshold would be recorded as a tax expense or benefit. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. There were no tax accruals relating to uncertain tax positions and no amounts accrued for any related interest or penalties with respect to the periods presented herein. The Company’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although the Company files both U.S. federal and state income tax returns, the Company’s major tax jurisdiction is federal.

Because U.S. federal income tax regulations differ from GAAP, distributions characterized in accordance with tax regulations may differ from net investment income and net realized gains recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Financial Statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

Distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid, if any, as a distribution is determined by our board of directors each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually. The tax attributes for distributions will generally include ordinary income and capital gains, but may also include certain tax-qualified dividends and/or a return of capital.

Capital transactions, in connection with our dividend reinvestment plan or through offerings of our common stock, are recorded when issued and offering costs are charged as a reduction of capital upon issuance of our common stock.

Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, we do not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair values of investments and liabilities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.

Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices to be more volatile than those of comparable U.S. companies or U.S. government securities.

As permitted under Regulation S-X and as explained by ASC paragraph 946-810-45-3, PennantPark Investment will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to us. Accordingly, we have consolidated the results of SBIC II and our Taxable Subsidiaries in our Consolidated Financial Statements. We do not consolidate our investment in PSLF. See further description of our investment in PSLF in Note 4.

Asset transfers that do not meet ASC Topic 860, Transfers and Servicing, requirements for sale accounting treatment are reflected in the Consolidated Statements of Assets and Liabilities and the Consolidated Schedules of Investments as investments. The creditors of Funding I have received a security interest in all its assets and such assets are not intended to be available to the creditors of PennantPark Investment or any of its affiliates.

The Investment Management Agreement with the Investment Adviser was reapproved by our board of directors, including a majority of our directors who are not interested persons of us or the Investment Adviser, in February 2021. Under the Investment Management Agreement, the Investment Adviser, subject to the overall supervision of our board of directors, manages the day-to-day operations of, and provides investment advisory services to, us. The Investment Adviser serves as the servicer to Funding I and, prior to deconsolidation, had irrevocably directed that the management fee owed to it with respect to such services be paid to the Company so long as the Investment Adviser remains the servicer. SBIC II’s investment management agreement does not affect the management or incentive fees that we pay to the Investment Adviser on a consolidated basis. For providing these services, the Investment Adviser receives a fee from us, consisting of two components— a base management fee and an incentive fee or, collectively, Management Fees.

The base management fee is calculated at an annual rate of 1.50% of our “average adjusted gross assets,” which equals our gross assets (exclusive of U.S. Treasury Bills, temporary draws under any credit facility, cash and cash equivalents, repurchase agreements or other balance sheet transactions undertaken at the end of a fiscal quarter for purposes of preserving investment flexibility for the next quarter and unfunded commitments, if any) and is payable quarterly in arrears. In addition, on November 13, 2018, in connection with our board of directors’ approval of the application of the modified asset coverage requirements under the 1940 Act to the Company, our board of directors also approved an amendment to the Investment Management Agreement reducing the Investment Adviser’s annual base management fee from 1.50% to 1.00% on gross assets that exceed 200% of the Company’s total net assets as of the immediately preceding quarter-end. This amendment became effective on February 5, 2019 with the amendment and restatement of the Investment Management Agreement on April 12, 2019. The base management fee is calculated based on the average adjusted gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. For example, if we sold shares on the 45th day of a quarter and did not use the proceeds from the sale to repay outstanding indebtedness, our gross assets for such quarter would give effect to the net proceeds of the issuance for only 45 days of the quarter during which the additional shares were outstanding. For the three and six months ended ~~December~~March 31, ~~2020 and 2019,~~2021, the Investment Adviser earned a base management fee of ~~$4.1~~$4.3 million and ~~$4.7~~$8.4 million, respectively, from us. For the three and six months ended March 31, 2020, the Investment Adviser earned a base management fee of $4.9 million and $9.6 million, respectively, from us.

One part is calculated and payable quarterly in arrears based on our Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. For this purpose, Pre-Incentive Fee Net Investment Income means interest income, dividend income and any other income, including any other fees (other than fees for providing managerial assistance), such as amendment, commitment, origination, prepayment penalties, structuring, diligence and consulting fees or other fees received from portfolio companies, accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement and any interest expense or amendment fees under any credit facility and distribution paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a percentage of the value of our net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7.00% annualized). We pay the Investment Adviser an incentive fee with respect to our Pre- Incentive Fee Net Investment Income in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which our Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 1.75%, (2) 100% of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.1212% in any calendar quarter (8.4848% annualized), and (3) 17.5% of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.1212% in any calendar quarter. These calculations are pro-rated for any share issuances or repurchases during the relevant quarter, if applicable.

Beginning April 1, 2020 and through March 31, 2021, the Investment Adviser has voluntarily agreed, in consultation with our board of directors, to irrevocably waive the performance-based incentive fees. For the three and six months ended ~~December~~March 31, ~~2020~~2021, the Investment Adviser did not earn an incentive fee on net investment income from us. For the three and ~~2019~~,six months ended March 31, 2020, the Investment Adviser earned ~~no incentive fee~~$1.9 million and ~~$0.7~~$2.7 million, respectively, in incentive fees on net investment income from ~~us, respectively.~~us.

The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date) and equals 17.5% of our realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all

realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. For ~~both~~each of the three

and six months ended ~~December~~March 31, ~~2020~~2021 and ~~2019~~,2020, the Investment Adviser did not accrue an incentive fee on capital gains as calculated under the Investment Management Agreement (as described above).

Under GAAP, we are required to accrue a capital gains incentive fee based upon net realized capital gains and net unrealized capital appreciation and depreciation on investments held at the end of each period. In calculating the capital gains incentive fee accrual, we considered the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Management Agreement. This accrual is calculated using the aggregate cumulative realized capital gains and losses and cumulative unrealized capital appreciation or depreciation. If such amount is positive at the end of a period, then we record a capital gains incentive fee equal to 17.5% of such amount, less the aggregate amount of actual capital gains related to incentive fees paid in all prior years. If such amount is negative, then there is no accrual for such year. There can be no assurance that such unrealized capital appreciation will be realized in the future. For ~~both~~each of the three and six months ended ~~December~~March 31, ~~2020~~2021 and ~~2019,~~2020, the Investment Adviser did not accrue an incentive fee on capital gains as calculated under GAAP.

The Administration Agreement with the Administrator was reapproved by our board of directors, including a majority of our directors who are not interested persons of us, in February ~~2021.~~2021. Under the Administration Agreement, the Administrator provides administrative services and office facilities to us. The Administrator provides similar services to SBIC II under its administration agreement with PennantPark Investment. For providing these services, facilities and personnel, we have agreed to reimburse the Administrator for its allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer and their respective staffs. The Administrator also offers, on our behalf, significant managerial assistance to portfolio companies to which we are required to offer such assistance. Reimbursement for certain of these costs is included in administrative services expenses in the Consolidated Statements of Operations. For the three and six months ended ~~December~~March 31, ~~2020 and 2019~~2021, we reimbursed the Investment Adviser approximately ~~$0.2~~$0.5 million and ~~$0.3~~$0.7 million, respectively, including expenses the Investment Adviser incurred on behalf of the Administrator, for the services described above. For the three and six months ended March 31, 2020, we reimbursed the Investment Adviser approximately $0.5 million and $0.8 million, respectively, including expenses the Investment Adviser incurred on behalf of the Administrator, for the services described above.

There were no transactions subject to Rule 17a-7 under the 1940 Act during both the three and six months ended ~~December~~March 31, 2021. For the each of three and six months ended March 31, 2020, the Company purchased $15.0 million in total investments from an affiliated fund managed by our Investment Adviser in accordance with, and ~~2019.~~pursuant to, procedures adopted under Rule 17a-7 of the 1940 Act.

For the three and six months ended ~~December~~March 31, ~~2020,~~2021, we sold ~~$22.3~~$15.5 million $37.8 million in investments to PSLF at fair value, respectively, and recognized $0.1 million and $0.5 million of net realized ~~gains.~~gains, respectively.

Purchases of investments, including PIK interest, for the three and six months ended ~~December~~March 31, ~~2020 and 2019~~2021 totaled ~~$71.7~~$78.4 million and ~~$178.5~~$150.1 million, respectively. For the same periods in the prior year, purchases of investments, including PIK interest, totaled $110.3 million and $288.7 million, respectively. Sales and repayments of investments for the three and six months ended ~~December~~March 31, ~~2020 and 2019~~2021 totaled ~~$102.6~~$65.0 million and ~~$31.2~~$167.6 million, respectively. For the same periods in the prior year, sales and repayments of investments totaled $16.4 million and $47.5 million, respectively.

	December 31, 2020				September 30, 2020				March 31, 2021				September 30, 2020
Investment Classification	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
First lien	$	430,081,913	$	425,160,939	$	451,763,766	$	439,013,082	$	444,419,098	$	443,453,935	$	451,763,766	$	439,013,082
Second lien		195,168,069		195,444,956		238,335,508		220,843,480		194,171,645		194,558,646		238,335,508		220,843,480
Subordinated debt / corporate notes		52,113,599		52,599,650		50,780,591		50,569,409		53,472,154		54,007,950		50,780,591		50,569,409
Subordinated notes in PSLF		64,154,570		64,154,570		63,000,000		63,000,000		64,154,571		64,154,571		63,000,000		63,000,000
Equity		342,012,727		350,729,645		328,471,250		272,082,870		342,262,469		378,823,151		328,471,250		272,082,870
Equity in PSLF		33,892,823		39,001,305		33,221,176		36,262,577		33,892,823		40,239,290		33,221,176		36,262,577
Total investments		1,117,423,701		1,127,091,065		1,165,572,291		1,081,771,418		1,132,372,760		1,175,237,543		1,165,572,291		1,081,771,418
Cash and cash equivalents		20,114,225		20,157,299		25,801,087		25,806,002		33,833,269		33,855,496		25,801,087		25,806,002
Total investments and cash and cash equivalents	$	1,137,537,926	$	1,147,248,364	$	1,191,373,378	$	1,107,577,420	$	1,166,206,029	$	1,209,093,039	$	1,191,373,378	$	1,107,577,420

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets (excluding cash and cash equivalents) in such industri~~es:~~es as of:

Industry Classification	December 31, 2020 ⁽¹⁾		September 30, 2020 ⁽¹⁾		March 31, 2021 ⁽¹⁾			September 30, 2020 ⁽¹⁾
Healthcare, Education and Childcare	23	%	17	%		23	%		17	%
Energy and Utilities	7		9			7			9
Consumer Products						6			6
Environmental Services	7		6			6			6
Consumer Products	6		6
Distribution	5		4			5			4
Media	5		6			5			6
Auto Sector	4		6
Building Materials	4		4			4			4
Business Services	4		4			4			4
Home and Office Furnishings						4			3
Hotels, Motels, Inns and Gaming						4			4
Aerospace and Defense						3			2
Education	4		3			3			3
Home and Office Furnishings	4		3
Insurance	4		4			3			4
Personal, Food and Miscellaneous Services	4		4			3			4
Hotels, Motels, Inns and Gaming	3		4
Printing and Publishing	3		2			3			2
Telecommunications	3		2
Aerospace and Defense	2		2
Auto Sector						2			6
Beverage, Food and Tobacco	2		3			2			3
Chemicals, Plastics and Rubber	2		2			2			2
Electronics						2			4
Other Media	2		2			2			2
Telecommunications						2			2
Transportation	2		2			2			2
Manufacturing / Basic Industries						1			1
Other	—		5			2			—
Total	100	%	100	%		100	%		100	%

On July 31, 2020, we and Pantheon formed PSLF, an unconsolidated joint venture. PSLF invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSLF was formed as a Delaware limited liability company. PSLF invests in portfolio companies in the same industries in which we may directly invest. We provide capital to PSLF in the form of subordinated notes and equity interests. ~~Effective October 31, 2020, Pantheon contributed an additional $27.5 million to PSLF and we invested an additional $1.8 million in PSLF.~~ As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, we and Pantheon owned 60.5% and 39.5%, respectively, and 72.0% and 28.0%, respectively, of each of the outstanding subordinated notes and equity interests in PSLF. As of the same dates, our investment in PSLF consisted of subordinated notes of $64.2 million and $63.0 million, respectively, and equity interests of ~~$39.0~~$40.2 million and $36.3 million, respectively.

As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, PSLF had total assets of $~~368.5~~395.1 million and $361.8 million, respectively. As of ~~December~~March 31, ~~2020,~~2021, PSLF had ~~$89.5~~$63.0 million of unused borrowing capacity under the PSLF Credit Facility (as defined below), subject to leverage and borrowing base restrictions, and cash and cash equivalents of ~~$15.8~~$12.5 million. As of September 30, 2020, PSLF had $36.5 million of unused borrowing capacity under the PSLF Credit Facility, subject to leverage and borrowing base restrictions, and cash and cash equivalents of $7.5 million.

We and Pantheon each appointed two members to PSLF’s four-person Member Designees’ Committee, or the Member Designees’ Committee. All material decisions with respect to PSLF, including those involving its investment portfolio, require unanimous approval of a quorum of the Member Designees’ Committee. Quorum is defined as (i) the presence of two members of the Member Designees’ Committee; provided that at least one individual is present that was elected, designated or appointed by each of us and Pantheon; (ii) the presence of three members of the Member Designees’ Committee, provided that the individual that was elected, designated or appointed by each of us or Pantheon, as the case may be, with only one individual present shall be entitled to cast two votes on each matter; or (iii) the presence of four members of the Member Designees’ Committee, provided that two individuals are present that were elected, designated or appointed by each of us and Pantheon.

Additionally, PSLF has entered into a $275.0 million (increased from $250.0 million on November 6, 2020) senior secured revolving credit facility which bears interest at LIBOR (or an alternative risk-free interest rate index) plus 260 basis points, or the PSLF Credit Facility, with BNP Paribas through its wholly-owned subsidiary, or PSLF Subsidiary, subject to leverage and borrowing base restrictions.

	December 31, 2020			September 30, 2020			March 31, 2021			September 30, 2020
Total investments	$	351,896,988		$	353,366,358		$	381,654,953		$	353,366,358
Weighted average yield on debt investments		7.3	%		7.3	%		7.3	%		7.3	%
Number of portfolio companies in PSLF		36			37			40			37
Largest portfolio company investment	$	16,146,764		$	18,411,916		$	16,188,243		$	18,411,916
Total of five largest portfolio company investments	$	74,627,783		$	77,896,431		$	75,352,184		$	77,896,431

Below is a listing of PSLF’s individual investments as of ~~December~~March 31, ~~2020:~~2021:

Issuer Name	Maturity	Industry	Current Coupon			Basis Point Spread Above Index ⁽¹⁾		Par		Cost		Fair Value ⁽²⁾			Maturity	Industry	Current Coupon			Basis Point Spread Above Index ⁽¹⁾		Par		Cost		Fair Value ⁽²⁾
First Lien Secured Debt—545.9%
First Lien Secured Debt—573.8%
Altamira Technologies, LLC	07/24/2025	Aerospace and Defense		7.00	%	3M L+600			958,731	$	947,168	$	915,588		07/24/2025	Aerospace and Defense		8.00	%	3M L+700			946,231	$	935,343	$	910,747
American Insulated Glass, LLC	12/21/2023	Building Materials		6.50	%	3M L+550			14,737,640		14,548,387		14,516,575		12/21/2023	Building Materials		6.50	%	3M L+550			14,700,175		14,525,350		14,553,173
Apex Service Partners, LLC	07/31/2025	Personal, Food and Miscellaneous Services		6.25	%	1M L+525			8,441,913		8,351,071		8,441,913		07/31/2025	Personal, Food and Miscellaneous Services		6.25	%	1M L+525			6,569,222		6,513,036		6,569,222
Apex Service Partners, LLC⁽³⁾	07/31/2021	Personal, Food and Miscellaneous Services		—			—		1,542,556		—		—
Apex Service Partners, LLC Term Loan B															07/31/2025	Personal, Food and Miscellaneous Services		6.50	%	1M L+550			2,887,307		2,849,444		2,887,307
Apex Service Partners, LLC Term Loan B⁽³⁾															07/31/2021	Personal, Food and Miscellaneous Services		—			—		505,870		—		—
Bazaarvoice, Inc.	02/01/2024	Printing and Publishing		6.75	%	1M L+575			14,591,146		14,479,701		14,372,279		02/01/2024	Printing and Publishing		6.75	%	1M L+575			14,554,206		14,453,043		14,554,206
Bottom Line Systems, LLC	02/13/2023	Healthcare, Education and Childcare		6.25	%	1M L+550			14,961,929		14,868,747		14,806,325		02/13/2023	Healthcare, Education and Childcare		6.25	%	1M L+550			13,729,432		13,654,333		13,729,432
Datalot Inc.	01/24/2025	Insurance		6.25	%	3M L+525			7,099,014		6,980,774		7,099,014		01/24/2025	Insurance		6.25	%	3M L+525			7,081,132		6,969,481		7,081,132
DRS Holdings III, Inc.	11/03/2025	Consumer Products		6.75	%	1M L+575			13,530,557		13,421,192		13,544,088		11/03/2025	Consumer Products		6.75	%	1M L+575			13,496,389		13,392,116		13,631,353
ECL Entertainment, LLC															04/01/2028	Hotels, Motels, Inns and Gaming		8.25	%	1M L+750			4,615,385		4,569,231		4,615,385
ECM Industries, LLC	12/23/2025	Electronics		5.50	%	1M L+450			2,865,962		2,840,215		2,865,962		12/23/2025	Electronics		5.50	%	1M L+450			2,826,993		2,802,723		2,812,858
Global Holdings InterCo LLC															03/16/2026	Banking, Finance, Insurance & Real Estate		7.00	%	3M L+600			7,500,000		7,387,731		7,481,250
Holdco Sands Intermediate, LLC	12/19/2025	Aerospace and Defense		7.50	%	3M L+600			12,162,857		12,004,848		11,919,600		12/19/2025	Aerospace and Defense		7.50	%	3M L+600			12,132,143		11,981,532		11,950,161
HW Holdco, LLC	12/10/2024	Media		5.50	%	3M L+450			14,700,000		14,591,222		14,332,501		12/10/2024	Media		5.50	%	3M L+450			14,662,500		14,562,909		14,369,249
IMIA Holdings, Inc.															10/26/2025	Aerospace and Defense		7.00	%	3M L+600			5,545,103		5,518,102		5,545,103
Integrity Marketing Acquisition, LLC	08/27/2025	Insurance		6.50	%	3M L+550			7,927,894		7,850,822		7,650,418		08/27/2025	Insurance		6.75	%	3M L+575			7,907,956		7,835,094		7,789,337
Juniper Landscaping of Florida, LLC															12/22/2021	Personal, Food and Miscellaneous Services		6.50	%	3M L+550			10,000,000		10,000,000		10,000,000
K2 Pure Solutions NoCal, L.P.	12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700			14,700,000		14,557,560		14,442,750		12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700			14,662,500		14,531,185		14,350,188
Kentucky Downs, LLC	03/07/2025	Hotels, Motels, Inns and Gaming		10.00	%	1M L+900			10,205,877		10,037,924		10,078,304		03/07/2025	Hotels, Motels, Inns and Gaming		10.00	%	1M L+900			10,205,877		10,044,256		10,843,744
LAV Gear Holdings, Inc.	10/31/2024	Leisure, Amusement, Motion Pictures, Entertainment		8.50	%	3M L+750			2,041,180		2,025,149		1,891,358		10/31/2024	Leisure, Amusement, Motion Pictures, Entertainment		8.50	%	3M L+750			2,066,695		2,052,119		1,915,413
Lightspeed Buyer Inc.	02/03/2026	Healthcare, Education and Childcare		6.50	%	1M L+550			12,566,555		12,342,012		12,315,224		02/03/2026	Healthcare, Education and Childcare		6.50	%	1M L+550			12,534,901		12,318,777		12,346,877
Lombart Brothers, Inc.	04/13/2023	Healthcare, Education and Childcare		9.25	%	1M L+825			16,907,607		16,777,822		16,146,764		04/13/2023	Healthcare, Education and Childcare		9.25	%	1M L+825			16,862,753		16,747,224		16,188,243
MAG DS Corp.	04/01/2027	Aerospace and Defense		6.50	%	1M L+550			5,985,000		5,694,110		5,685,750		04/01/2027	Aerospace and Defense		6.50	%	1M L+550			5,970,000		5,690,193		5,850,600
MeritDirect, LLC	05/23/2024	Media		6.50	%	3M L+550			13,914,003		13,764,584		13,357,443		05/23/2024	Media		6.50	%	3M L+550			13,738,046		13,600,767		13,428,940
PlayPower, Inc.	05/08/2026	Consumer Products		5.74	%	3M L+550			4,015,020		3,981,658		3,829,326		05/08/2026	Consumer Products		5.70	%	3M L+550			4,004,520		3,972,682		3,949,458
Radius Aerospace, Inc.	03/31/2025	Aerospace and Defense		6.75	%	3M L+575			13,744,524		13,581,728		13,469,634		03/31/2025	Aerospace and Defense		6.75	%	3M L+575			13,709,619		13,557,021		13,435,427
Research Now Group, Inc. and Survey Sampling International LLC	12/20/2024	Business Services		6.50	%	3M L+550			14,809,160		14,696,977		14,538,893		12/20/2024	Business Services		6.50	%	3M L+550			14,770,992		14,665,291		14,597,433
Riverpoint Medical, LLC	06/20/2025	Healthcare, Education and Childcare		5.50	%	3M L+450			1,970,000		1,954,287		1,938,677		06/20/2025	Healthcare, Education and Childcare		5.50	%	3M L+450			1,965,000		1,950,151		1,953,014
Sales Benchmark Index LLC	01/03/2025	Business Services		7.75	%	3M L+600			7,867,378		7,736,084		7,729,699		01/03/2025	Business Services		7.75	%	3M L+600			7,847,561		7,723,814		7,317,850
Sargent & Greenleaf Inc.	12/20/2024	Electronics		7.00	%	1M L+550			5,420,826		5,355,677		5,353,065		12/20/2024	Electronics		7.00	%	1M L+550			5,379,340		5,318,630		5,379,340
Signature Systems Holding Company	05/03/2024	Chemicals, Plastics and Rubber		7.50	%	3M L+650			14,062,500		13,922,678		13,746,094		05/03/2024	Chemicals, Plastics and Rubber		7.50	%	3M L+650			13,875,000		13,748,286		13,701,562
Solutionreach, Inc.	01/17/2024	Communications		6.75	%	3M L+575			12,497,823		12,330,599		12,410,338		01/17/2024	Communications		6.75	%	3M L+575			12,464,523		12,309,758		12,464,523
STV Group Incorporated	12/11/2026	Transportation		5.40	%	1M L+525			12,320,154		12,211,130		12,320,154		12/11/2026	Transportation		5.36	%	1M L+525			12,162,305		12,058,444		11,615,001
TeleGuam Holdings, LLC	11/20/2025	Telecommunications		5.50	%	1M L+450			5,006,244		4,962,527		4,956,181		11/20/2025	Telecommunications		5.50	%	1M L+450			4,877,809		4,836,844		4,829,030
Teneo Holdings LLC	07/18/2025	Financial Services		6.25	%	1M L+525			7,461,111		7,188,146		7,370,981		07/18/2025	Financial Services		6.25	%	1M L+525			7,442,222		7,182,469		7,421,756
TPC Canada Parent, Inc. and TPC US Parent, LLC	11/24/2025	Food		6.25	%	3M L+525			5,635,844		5,579,485		5,466,768		11/24/2025	Food		6.25	%	3M L+525			5,621,612		5,565,396		5,452,963
TVC Enterprises, LLC	01/18/2024	Transportation		6.50	%	1M L+550			14,510,397		14,319,883		14,619,226		03/26/2026	Transportation		6.75	%	1M L+575			12,837,421		12,681,035		12,709,047
TWS Acquisition Corporation	06/16/2025	Education		7.25	%	1M L+625			10,046,691		9,880,493		10,046,691		06/16/2025	Education		7.25	%	1M L+625			9,647,753		9,497,821		9,647,753
UBEO, LLC	04/03/2024	Printing and Publishing		5.50	%	3M L+450			4,738,102		4,701,846		4,702,566		04/03/2024	Printing and Publishing		5.50	%	3M L+450			4,734,322		4,700,190		4,677,303
Vision Purchaser Corporation	06/10/2025	Media		7.75	%	1M L+675			14,321,880		14,088,756		13,605,786		06/10/2025	Media		7.75	%	1M L+675			14,321,451		14,102,097		13,748,593
Wheel Pros, Inc.															11/10/2027	Automotive		6.25	%	1M L+625			3,990,000		3,970,083		3,972,564
Whitney, Bradley & Brown, Inc.	10/18/2022	Aerospace and Defense		8.50	%	1M L+750			14,004,711		13,861,591		14,004,711		10/18/2022	Aerospace and Defense		8.50	%	1M L+750			13,815,260		13,691,368		13,953,413
Wildcat Buyerco, Inc.	02/27/2026	Electronics		6.25	%	3M L+525			7,481,156		7,406,933		7,406,342		02/27/2026	Electronics		6.25	%	3M L+525			7,462,312		7,392,228		7,425,003
Total First Lien Secured Debt											353,843,786		351,896,988												381,857,597		381,654,953
Cash and Cash Equivalents—24.5%
Cash and Cash Equivalents—18.9%
BlackRock Federal FD Institutional 30											14,192,122		14,192,122												9,916,869		9,916,869
US Bank Cash											1,582,100		1,582,100												2,623,145		2,623,145
Total Cash and Cash Equivalents											15,774,222		15,774,222												12,540,014		12,540,014
Total Investments and Cash Equivalents—570.3%										$	369,618,008	$	367,671,210
Liabilities in Excess of Other Assets—(470.3)%													(303,206,242	)
Total Investments and Cash Equivalents—592.7%																								$	394,397,611	$	394,194,967
Liabilities in Excess of Other Assets—(492.7)%																											(327,683,744	)
Members' Equity—100.0%												$	64,464,968													$	66,511,223

Issuer Name	Maturity	Industry	Current Coupon			Basis Point Spread Above Index ⁽¹⁾	Par		Cost		Fair Value ⁽²⁾
First Lien Secured Debt—701.6%
Advantage Sales & Marketing	07/23/2021	Grocery		4.25	%	1M L+325		8,627,315	$	8,418,699	$	8,456,926
Altamira Technologies, LLC	07/24/2025	Aerospace and Defense		7.00	%	3M L+600		971,231		958,950		937,238
American Insulated Glass, LLC	12/21/2023	Building Materials		6.50	%	3M L+550		14,775,105		14,571,097		14,479,603
Apex Service Partners, LLC	07/31/2025	Personal, Food and Miscellaneous Services		6.25	%	1M L+525		6,607,449		6,546,594		6,409,225
Bazaarvoice, Inc.	02/01/2024	Printing and Publishing		6.75	%	1M L+575		14,628,085		14,509,210		14,408,664
Bottom Line Systems, LLC	02/13/2023	Healthcare, Education and Childcare		6.25	%	1M L+550		15,000,000		14,895,515		14,683,499
Cano Health, LLC	06/02/2025	Healthcare, Education and Childcare		8.50	%	1M L+750		18,274,854		18,174,687		18,411,916
Datalot Inc.	01/24/2025	Insurance		6.25	%	3M L+525		7,116,895		6,991,975		7,125,435
DRS Holdings III, Inc.	11/03/2025	Consumer Products		6.75	%	1M L+575		13,564,726		13,448,313		13,316,490
ECM Industries, LLC	12/23/2025	Electronics		5.50	%	1M L+450		2,873,184		2,846,226		2,858,818
Holdco Sands Intermediate, LLC	12/19/2025	Aerospace and Defense		7.50	%	3M L+600		12,193,571		12,028,384		11,888,732
HW Holdco, LLC	12/10/2024	Media		5.50	%	3M L+450		14,737,500		14,619,623		14,295,375
Integrity Marketing Acquisition, LLC	08/27/2025	Insurance		6.50	%	3M L+550		447,833		444,755		443,354
K2 Pure Solutions NoCal, L.P.	12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700		14,737,500		14,583,983		14,413,275
Kentucky Downs, LLC	03/07/2025	Hotels, Motels, Inns and Gaming		9.50	%	1M L+850		10,153,350		9,978,792		10,001,050
LAV Gear Holdings, Inc.	10/31/2024	Leisure, Amusement, Motion Pictures, Entertainment		8.50	%	3M L+750		2,015,428		1,998,623		1,856,411
Lightspeed Buyer Inc.	02/03/2026	Healthcare, Education and Childcare		6.25	%	1M L+525		12,598,209		12,365,207		12,440,731
Lombart Brothers, Inc.	04/13/2023	Healthcare, Education and Childcare		7.25	%	1M L+625		16,914,403		16,770,520		15,882,625
MAG DS Corp.	04/01/2027	Aerospace and Defense		6.50	%	1M L+550		6,000,000		5,700,000		5,707,500
MeritDirect, LLC	05/23/2024	Media		6.50	%	3M L+550		14,076,563		13,914,921		13,407,926
PlayPower, Inc.	05/08/2026	Consumer Products		5.72	%	3M L+550		4,025,520		3,990,631		3,824,244
Radius Aerospace, Inc.	03/31/2025	Aerospace and Defense		6.75	%	3M L+575		13,779,429		13,608,176		13,503,840
Research Now Group, Inc. and Survey Sampling International LLC	12/20/2024	Business Services		6.50	%	3M L+550		14,847,328		14,728,854		14,023,302
Riverpoint Medical, LLC	06/20/2025	Healthcare, Education and Childcare		5.50	%	3M L+450		1,975,000		1,958,417		1,905,678
Sales Benchmark Index LLC	01/03/2025	Business Services		7.75	%	3M L+600		7,887,195		7,748,712		7,697,903
Sargent & Greenleaf Inc.	12/20/2024	Electronics		7.00	%	1M L+550		5,448,483		5,378,893		5,350,411
Signature Systems Holding Company	05/03/2024	Chemicals, Plastics and Rubber		7.50	%	3M L+650		14,250,000		14,096,623		13,786,875
Solutionreach, Inc.	01/17/2024	Communications		6.75	%	3M L+575		12,531,123		12,351,398		12,393,282
STV Group Incorporated	12/11/2026	Transportation		5.40	%	1M L+525		12,351,980		12,238,771		12,228,460
TeleGuam Holdings, LLC	11/20/2025	Telecommunications		5.50	%	1M L+450		5,080,832		5,034,725		4,928,407
Teneo Holdings LLC	07/18/2025	Financial Services		6.25	%	1M L+525		1,980,000		1,874,970		1,905,750
TPC Canada Parent, Inc. and TPC US Parent, LLC	11/24/2025	Food		6.25	%	3M L+525		5,650,076		5,593,575		5,480,573
TVC Enterprises, LLC	01/18/2024	Transportation		6.50	%	1M L+550		14,547,897		14,343,185		14,438,788
TWS Acquisition Corporation	06/16/2025	Education		7.25	%	1M L+625		8,644,186		8,469,082		8,471,302
UBEO, LLC	04/03/2024	Printing and Publishing		5.50	%	3M L+450		4,738,102		4,700,032		4,453,816
Vision Purchaser Corporation	06/10/2025	Media		7.25	%	1M L+625		14,358,203		14,112,113		13,496,711
Whitney, Bradley & Brown, Inc.	10/18/2022	Aerospace and Defense		8.50	%	1M L+750		14,194,162		14,029,177		14,052,223
Total First Lien Secured Debt										358,023,408		353,366,358
Cash and Cash Equivalents—15.0%
BlackRock Federal FD Institutional 30										7,353,307		7,353,307
US Bank Cash										183,412		183,412
Total Cash and Cash Equivalents										7,536,719		7,536,719
Total Investments and Cash Equivalents—716.6%									$	365,560,127	$	360,903,077
Liabilities in Excess of Other Assets—(616.6)%												(310,538,386	)
Members' Equity—100.0%											$	50,364,691

Statements of Assets and Liabilities	Statements of Assets and Liabilities					Statements of Assets and Liabilities
		December 31, 2020		September 30, 2020			March 31, 2021		September 30, 2020
Assets
Investments at fair value (cost—$353,843,786 and $358,023,408, respectively)		$	351,896,988	$	353,366,358
Cash and cash equivalents (cost—$15,774,222 and $7,536,719, respectively)			15,774,222		7,536,719
Investments at fair value (cost—$381,857,597 and $358,023,408, respectively)							$	381,654,953	$	353,366,358
Cash and cash equivalents (cost—$12,540,014 and $7,536,719, respectively)								12,540,014		7,536,719
Interest receivable			813,092		877,008			912,621		877,008
Total assets			368,484,302		361,780,085			395,107,588		361,780,085
Liabilities
Distribution payable			1,800,000		1,393,716			2,400,000		1,393,716
Payable for investments purchased			7,131,972		5,700,000			4,569,231		5,700,000
Credit facility payable			185,500,000		213,500,000			212,000,000		213,500,000
Notes payable to members			106,040,612		87,500,000			106,040,612		87,500,000
Interest payable on credit facility			1,486,100		1,649,852			1,477,458		1,649,852
Interest payable on members notes			1,643,629		1,356,250			1,590,609		1,356,250
Accrued other expenses			417,021		315,576			518,455		315,576
Total liabilities			304,019,334		311,415,394			328,596,365		311,415,394
Commitments and contingencies ⁽¹⁾			—		—			—		—
Members' equity			64,464,968		50,364,691			66,511,223		50,364,691
Total liabilities and members' equity		$	368,484,302	$	361,780,085		$	395,107,588	$	361,780,085

Statements of Operations ⁽¹⁾	Statements of Operations ⁽¹⁾			Statements of Operations ⁽¹⁾
		Three Months Ended December 31,			Three Months Ended March 31,		Six Months Ended March 31,
		2020			2021		2021
Investment income:
Interest		$	6,561,996		$	6,695,820	$	13,257,816
Other income			436,957			289,777		726,734
Total investment income			6,998,953			6,985,597		13,984,550
Expenses:
Interest and expenses on credit facility			1,754,377			1,497,604		3,249,951
Interest expense on members notes			2,299,879			2,381,279		4,683,188
Administrative services expenses			292,965			292,965		585,930
Other general and administrative expenses ⁽²⁾			111,648			111,648		223,296
Total expenses			4,458,869			4,283,496		8,742,365
Net investment income			2,540,084			2,702,101		5,242,185
Realized and unrealized gain on investments:
Net realized gain on investments			464,337			—		464,337
Net change in unrealized appreciation on investments			2,710,252			1,744,154		4,454,406
Net realized and unrealized gain from investments			3,174,589			1,744,154		4,918,743
Net increase in members' equity resulting from operations		$	5,714,673		$	4,446,255	$	10,160,928

Fair value, as defined under ASC 820, is the price that we would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment or liability. ASC 820 emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of us. Unobservable inputs reflect the assumptions market participants would use in pricing an asset or liability based on the best information available to us on the reporting period date.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:

using the closing price from the primary exchange. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.

The inputs into the determination of fair value may require significant management judgment or estimation. Even if observable market data is available, such information may be the result of consensus pricing information, disorderly transactions or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence were available. Corroborating evidence that would result in classifying these non-binding broker/dealer bids as a Level 2 asset includes observable orderly market-based transactions for the same or similar assets or other relevant observable market-based inputs that may be used in pricing an asset.

Our investments are generally structured as debt and equity investments in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. The transaction price, excluding transaction costs, is typically the best estimate of fair value at inception. Ongoing reviews by our Investment Adviser and independent valuation firms are based on an assessment of each underlying investment, incorporating valuations that consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information including comparable transactions, performance multiples and yields, among other factors. These non-public investments valued using unobservable inputs are included in Level 3 of the fair value hierarchy.

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in our ability to observe valuation inputs may result in a reclassification for certain financial assets or liabilities.

In addition to using the above inputs to value cash equivalents, investments, our SBA debentures, our 2024 Notes and our Credit Facilities, we employ the valuation policy approved by our board of directors that is consistent with ASC 820. Consistent with our valuation policy, we evaluate the source of inputs, including any markets in which our investments are trading, in determining fair value. See Note 2.

As outlined in the table below, some of our Level 3 investments using a market approach valuation technique are valued using the average of the bids from brokers or dealers. The bids include a disclaimer, may not have corroborating evidence, may be the result of a disorderly transaction and may be the result of consensus pricing. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If our board of directors has a bona fide reason to believe any such bids do not reflect the fair value of an investment, it may independently value such investment by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available. In accordance with ASC 820, we do not categorize any investments for which fair value is measured using the net asset value per share within the fair value hierarchy.

The remainder of our investment portfolio and our long-term Credit Facilities are valued using a market comparable or an enterprise market value technique. With respect to investments for which there is no readily available market value, the factors that our board of directors may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the pricing indicated by the external event, excluding transaction costs, is used to corroborate the valuation. When using earnings multiples to value a portfolio company, the multiple used requires the use of judgment and estimates in determining how a market participant would price such an asset. These non-public investments using unobservable inputs are included in Level 3 of the fair value hierarchy. Generally, the sensitivity of unobservable inputs or combination of inputs such as industry comparable companies, market outlook, consistency, discount rates and reliability of earnings and prospects for growth, or lack thereof, affects the multiple used in pricing an investment. As a result, any change in any one of those factors may have a significant impact on the valuation of an investment. Generally, an increase in a market yield will result in a decrease in the valuation of a debt investment, while a decrease in a market yield will have the opposite effect. Generally, an increase in an earnings before interest, taxes, depreciation and amortization, or EBITDA, multiple will result in an increase in the valuation of an investment, while a decrease in an EBITDA multiple will have the opposite effect.

Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows:

Asset Category

Fair value at

December 31, 2020

Valuation Technique

Unobservable Input

Range of Input

(Weighted Average) ⁽¹⁾

Fair Value at March 31, 2021

Valuation Technique

Unobservable Input

Range of Input

(Weighted Average)⁽¹⁾

First lien

52,298,929

Market Comparable

Broker/Dealer bids or quotes

N/A

63,582,553

Market Comparable

Broker/Dealer bids or quotes

N/A

First lien

372,862,010

Market Comparable

Market Yield

5.7% – 14.9% (8.9%)

379,871,382

Market Comparable

Market Yield

5.9% – 14.6% (8.6%)

Second lien

26,040,363

Market Comparable

Broker/Dealer bids or quotes

N/A

24,087,500

Market Comparable

Broker/Dealer bids or quotes

N/A

Second lien

159,174,322

Market Comparable

Market Yield

9.2% –11.0% (10.3%)

160,152,793

Market Comparable

Market Yield

9.3% –11.5% (10.3%)

Second lien

10,230,271

Enterprise Market Value

EBITDA multiple

5.9x

10,318,353

Enterprise Market Value

EBITDA multiple

5.9x

Subordinated debt / corporate notes

116,754,220

Market Comparable

Market Yield

9.5% – 15.9% (12.0%)

118,162,521

Market Comparable

Market Yield

9.7% – 16.4% (12.3%)

Equity

330,499,916

Enterprise Market Value

EBITDA multiple

4.0x – 30.2x (11.2x)

284,023,992

Enterprise Market Value

EBITDA multiple

4.0x – 40.3x (12.5x)

Equity

18,661,355

Market Comparable

Market Yield

18.9%

72,968,079

Enterprise Market Value

DLOM

5.7%

Equity

19,539,097

Market Comparable

Market Yield

19.6%

Total Level 3 investments

1,086,521,386

1,132,706,270

Truist Credit Facility

349,104,144

Market Comparable

Market Yield

3.1%

372,867,465

Market Comparable

Market Yield

2.5%

Our investments, cash and cash equivalents, Truist Credit Facility, SBA debentures and 2024 Notes were categorized as follows in the fair value hierarchy:

	Fair Value at December 31, 2020										Fair Value at March 31, 2021
Description	Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value⁽¹⁾		Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value⁽¹⁾
Debt investments	$	737,360,115	$	—	$	—	$	737,360,115	$	—	$	756,175,102	$	—	$	—	$	756,175,102	$	—
Equity investments		389,730,950		1,568,374		—		349,161,271		39,001,305		419,062,441		2,291,983		—		376,531,168		40,239,290
Total investments		1,127,091,065		1,568,374		—		1,086,521,386		39,001,305		1,175,237,543		2,291,983		—		1,132,706,270		40,239,290
Cash and cash equivalents		20,157,299		20,157,299		—		—		—		33,855,496		33,855,496		—		—		—
Total investments and cash and cash equivalents	$	1,147,248,364	$	21,725,673	$	—	$	1,086,521,386	$	39,001,305	$	1,209,093,039	$	36,147,479	$	—	$	1,132,706,270	$	40,239,290
Truist Credit Facility		349,104,144		—		—		349,104,144		—	$	372,867,465	$	—	$	—	$	372,867,465	$	—
SBA Debentures⁽²⁾		115,862,617		—		—		115,862,617		—		106,128,698		—		—		106,128,698		—
2024 Notes⁽²⁾		86,836,500		86,836,500		—		—		—		88,630,500		88,630,500		—		—		—
Total debt	$	551,803,261	$	86,836,500	$	—	$	464,966,761	$	—	$	567,626,663	$	88,630,500	$	—	$	478,996,163	$	—

	Fair Value at September 30, 2020										Fair Value at September 30, 2020
Description	Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value⁽¹⁾		Fair Value		Level 1		Level 2		Level 3		Measured at Net Asset Value⁽¹⁾
Debt investments	$	773,425,971	$	—	$	—	$	773,425,971	$	—	$	773,425,971	$	—	$	—	$	773,425,971	$	—
Equity investments		308,345,447		1,328,924		—		270,753,946		36,262,577		308,345,447		1,328,924		—		270,753,946		36,262,577
Total investments		1,081,771,418		1,328,924		—		1,044,179,917		36,262,577		1,081,771,418		1,328,924		—		1,044,179,917		36,262,577
Cash and cash equivalents		25,806,002		25,806,002		—		—		—		25,806,002		25,806,002		—		—		—
Total investments and cash and cash equivalents	$	1,107,577,420	$	27,134,926	$	—	$	1,044,179,917	$	36,262,577	$	1,107,577,420	$	27,134,926	$	—	$	1,044,179,917	$	36,262,577
Truist Credit Facility		368,701,972		—		—		368,701,972		—	$	368,701,972	$	—	$	—	$	368,701,972		—
SBA Debentures⁽²⁾		115,772,677		—		—		115,772,677		—		115,772,677		—		—		115,772,677		—
2024 Notes⁽²⁾		83,837,560		—		83,837,560		—		—		83,837,560		—		83,837,560		—		—
Total debt	$	568,312,209	$	—	$	83,837,560	$	484,474,649	$	—	$	568,312,209	$	—	$	83,837,560	$	484,474,649	$	—

The tables below show a reconciliation of the beginning and ending balances for investments measured at fair value using significant unobservable inputs (Level 3):

	For the three months ended December 31, 2020									Six Months Ended March 31, 2021
Description	Debt investments			Equity investments			Totals			Debt investments			Equity investments			Totals
Beginning Balance	$	773,425,971		$	270,753,946		$	1,044,179,917		$	773,425,971		$	270,753,946		$	1,044,179,917
Net realized (loss) gain		(19,754,439	)		2,148,373			(17,606,066	)		(19,628,905	)		2,305,899			(17,323,006	)
Net change in unrealized appreciation		26,295,858			64,865,848			91,161,706			30,411,528			91,986,003			122,397,531
Purchases, PIK interest, net discount accretion and non-cash exchanges		52,096,591			19,280,062			71,376,653			129,950,316			21,086,944			151,037,260
Sales, repayments and non-cash exchanges		(94,703,866	)		(7,886,958	)		(102,590,824	)		(157,983,808	)		(9,601,624	)		(167,585,432	)
Transfers in/out of Level 3		—			—			—			—			—			—
Ending Balance	$	737,360,115		$	349,161,271		$	1,086,521,386		$	756,175,102		$	376,531,168		$	1,132,706,270
Net change in unrealized appreciation reported within the net change in unrealized appreciation on investments in our Consolidated Statements of Operations attributable to our Level 3 assets still held at the reporting date.	$	25,798,887		$	65,689,444		$	91,488,331
Net change in unrealized appreciation reported within the net change in unrealized appreciation on investments in our Consolidated Statements of Operations attributable to our Level 3 assets still held at the reporting date										$	30,710,119		$	92,809,599		$	123,519,718

	For the three months ended December 31, 2019									Six Months Ended March 31, 2020
Description	Debt investments			Equity investments			Totals			Debt investments			Equity investments			Totals
Beginning Balance	$	1,025,779,134		$	192,859,082		$	1,218,638,216		$	1,025,779,134		$	192,859,082		$	1,218,638,216
Net realized gain (loss)		324,712			(12,367,930	)		(12,043,218	)		1,516,979			(12,127,225	)		(10,610,246	)
Net change in unrealized appreciation		2,723,990			20,400,910			23,124,900
Net change in unrealized depreciation											(35,303,152	)		(60,374,875	)		(95,678,027	)
Purchases, PIK interest, net discount accretion and non-cash exchanges		127,801,796			48,956,985			176,758,781			196,332,806			91,465,096			287,797,902
Sales, repayments and non-cash exchanges		(30,928,814	)		(222,199	)		(31,151,013	)		(47,072,297	)		(462,905	)		(47,535,202	)
Transfers in/out of Level 3		—			—			—			—			—			—
Ending Balance	$	1,125,700,818		$	249,626,848		$	1,375,327,666		$	1,141,253,470		$	211,359,173		$	1,352,612,643
Net change in unrealized appreciation reported within the net change in unrealized appreciation on investments in our Consolidated Statements of Operations attributable to our Level 3 assets still held at the reporting date.	$	2,756,254		$	8,024,114		$	10,780,368
Net change in unrealized depreciation reported within the net change in unrealized depreciation on investments in our Consolidated Statements of Operations attributable to our Level 3 assets still held at the reporting date										$	(35,303,154	)	$	(69,768,488	)	$	(105,071,642	)

The table below shows a reconciliation of the beginning and ending balances for liabilities measured at fair value using significant unobservable inputs (Level 3):

	Three Months Ended December 31,						Six Months Ended March 31,
Credit Facilities	2020			2019			2021			2020
Beginning Balance (cost – $380,252,000 and $472,636,000, respectively) ⁽¹⁾	$	360,701,972		$	465,390,214		$	360,701,972		$	465,390,214
Net change in unrealized appreciation included in earnings		13,109,272			2,571,321
Net change in unrealized depreciation included in earnings								16,872,593			(46,374,784	)
Borrowings ⁽¹⁾		15,292,900			81,500,000			49,564,132			267,000,000
Repayments ⁽¹⁾		(40,000,000	)		(35,000,000	)		(77,271,232	)		(53,000,000	)
Transfers in and/or out of Level 3		—			—			—			—
Ending Balance (cost – $355,544,900 and $519,136,000, respectively) ⁽¹⁾	$	349,104,144		$	514,461,535
Ending Balance (cost – $352,544,900 and $686,636,000, respectively)							$	349,867,465		$	633,015,430
Temporary draws outstanding, at cost		—			15,000,000			23,000,000			—
Ending Balance (cost – $355,544,900 and $534,136,000, respectively)	$	349,104,144		$	529,461,535
Ending Balance (cost – $375,544,900 and $686,636,000, respectively)							$	372,867,465		$	633,015,430

As of ~~December~~March 31, ~~2020,~~2021, we had outstanding non-U.S. dollar borrowings on our Truist Credit Facility. Net change in fair value on foreign currency translation on outstanding borrowings is listed below:

Foreign Currency		Amount Borrowed				Borrowing Cost				Current Value				Reset Date		Change in Fair Value				Amount Borrowed				Borrowing Cost				Current Value				Reset Date		Change in Fair Value
British Pound		£	29,000,000			$	40,044,900			$	39,641,550			March 19, 2021		$	(403,350	)		£	29,000,000			$	40,044,900			$	40,011,300			June 18, 2021		$	(33,600	)

As of September 30, 2020, we had outstanding non-U.S. dollar borrowings on ~~the~~our Truist Credit Facility. Net change in fair value on foreign currency translation on outstanding borrowings is listed below:

Generally, the carrying value of our consolidated financial liabilities approximates fair value. We have adopted the principles under ASC 825-10, which provides companies with an option to report selected financial assets and liabilities at fair value, and made an irrevocable election to apply ASC 825-10 to our Credit Facilities. We elected to use the fair value option for the Credit Facilities to align the measurement attributes of both our assets and liabilities while mitigating volatility in earnings from using different measurement attributes. Due to that election and in accordance with GAAP, we did not incur any expenses relating to amendment costs on the Credit Facilities during the three and six months ended ~~December~~March 31, 2021 and 2020 ~~and 2019.~~. ASC 825-10 establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect on earnings of a company’s choice to use fair value. ASC 825-10 also requires us to display the fair value of the selected assets and liabilities on the face of the Consolidated Statements of Assets and Liabilities and changes in fair value of the Credit Facilities are reported in our Consolidated Statements of Operations. We did not elect to apply ASC 825-10 to any other financial assets or liabilities, including the 2024 Notes and the SBA debentures.

For the three and six months ended ~~December~~March 31, ~~2020, our~~2021, the Truist Credit Facility had a net change in unrealized appreciation of ~~$13.1 million.~~$3.8 million and $16.9 million, respectively. For the three and six months ended ~~December~~March 31, ~~2019,~~2020, our Credit Facilities had a net change in unrealized ~~appreciation~~depreciation of ~~$2.6 million.~~$48.9 million and $46.4 million, respectively. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, the net unrealized depreciation on the Truist Credit Facility totaled ~~$6.4~~$2.7 million and $19.6 million, respectively. We use a nationally recognized independent valuation service to measure the fair value of our Credit Facilities in a manner consistent with the valuation process that our board of directors uses to value our investments.

An affiliated portfolio company is a company in which we have ownership of 5% or more of its voting securities. A portfolio company is generally presumed to be a non-controlled affiliate when we own at least 5% but 25% or less of its voting securities and a controlled affiliate when we own more than 25% of its voting securities. Transactions related to our funded investments with both controlled and non-controlled affiliates for the ~~three~~six months ended ~~December~~March 31, ~~2020~~2021 were as follows:

Name of Investment	Fair Value at September 30, 2020		Gross Additions⁽¹⁾		Gross Reductions			Net Change in Appreciation / (Depreciation)			Fair Value at December 31, 2020		Interest Income		PIK Income		Dividend Income		Net Realized Gains (Losses)			Fair Value at September 30, 2020		Gross Additions⁽¹⁾		Gross Reductions			Net Change in Appreciation / (Depreciation)			Fair Value at March 31, 2021		Interest Income		PIK Income		Dividend Income		Net Realized Gains (Losses)
Controlled Affiliates
AKW Holdings Limited	$	37,772,115	$	1,315,725	$	—		$	3,994,985		$	43,082,825	$	785,802	$	—	$	—	$	—		$	37,772,115	$	2,014,175	$	—		$	4,908,064		$	44,694,354	$	1,493,275	$	—	$	—	$	—
PennantPark Senior Loan Fund, LLC *		99,262,577		1,826,217				$	2,067,081		$	103,155,875		1,466,896		—		1,521,000		—			99,262,577		1,826,218		—			3,305,066			104,393,861		2,910,085		—		2,973,000		—
PT Networks, LLC		91,384,649		1,499,329		—			2,881,419			95,765,397		24,078		1,485,523		—		—			91,384,649		3,050,205		—			8,838,150			103,273,004		50,675		3,004,494		—		—
RAM Energy LLC		89,923,518		—		—			(16,787,927	)		73,135,591		—		—		—		—			89,923,518		—		—			(12,240,168	)		77,683,350		—		—		—		—
Total Controlled Affiliates	$	318,342,859	$	4,641,271	$	—		$	(7,844,442	)	$	315,139,688	$	2,276,776	$	1,485,523	$	1,521,000	$	—		$	318,342,859	$	6,890,598	$	—		$	4,811,112		$	330,044,569	$	4,454,035	$	3,004,494	$	2,973,000	$	—
Non-Controlled Affiliates
ETX Energy, LLC	$	5,055,851	$	—	$	—		$	(5,055,851	)	$	—	$	—	$	—	$	—	$	—		$	5,055,851	$	—	$	—		$	(5,055,851	)	$	—	$	—	$	—	$	—	$	—
Mailsouth Inc. ⁽²⁾		18,782,777		10,230,271		(19,708,359	)		17,441,424			26,746,113		—		76,727		—		(19,708,359	)		18,782,777		10,318,353		(19,708,359	)		18,825,679			28,218,450		—		456,998		—		(19,708,359	)
MidOcean JF Holdings Corp.		22,698,042		—		—			12,558,478			35,256,520		—		—		—		—			22,698,042		—		—			20,488,156			43,186,198		—		—		—		—
Total Non-Controlled Affiliates	$	46,536,670	$	10,230,271	$	(19,708,359	)	$	24,944,051		$	62,002,633	$	—	$	76,727	$	—	$	(19,708,359	)	$	46,536,670	$	10,318,353	$	(19,708,359	)	$	34,257,984		$	71,404,648	$	—	$	456,998	$	—	$	(19,708,359	)
Total Controlled and Non-Controlled Affiliates	$	364,879,529	$	14,871,542	$	(19,708,359	)	$	17,099,609		$	377,142,321	$	2,276,776	$	1,562,250	$	1,521,000	$	(19,708,359	)	$	364,879,529	$	17,208,951	$	(19,708,359	)	$	39,069,096		$	401,449,217	$	4,454,035	$	3,461,492	$	2,973,000	$	(19,708,359	)

The following information sets forth the computation of basic and diluted per share net increase in net assets resulting from operations:

Cash equivalents represent cash in money market funds pending investment in longer-term portfolio holdings. Our portfolio may consist of temporary investments in U.S. Treasury Bills (of varying maturities), repurchase agreements, money market funds or repurchase agreement-like treasury securities. These temporary investments with original maturities of 90 days or less are deemed cash equivalents and are included in the Consolidated Schedule of Investments. At the end of each fiscal quarter, we may take proactive steps to preserve investment flexibility for the next quarter by investing in cash equivalents, which is dependent upon the composition of our total assets at quarter-end. We may accomplish this in several ways, including purchasing U.S. Treasury Bills and closing out positions on a net cash basis after quarter-end, temporarily drawing down on the Truist Credit Facility, or utilizing repurchase agreements or other balance sheet transactions as are deemed appropriate for this purpose. These amounts are excluded from average adjusted gross assets for purposes of computing the Investment Adviser’s management fee. U.S. Treasury Bills with maturities greater than 60 days from the time of purchase are valued consistent with our valuation policy. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020,, cash and cash equivalents consisted of money market funds in the amounts of ~~$20.2~~33.9 million and $25.8 million at fair value, respectively.

	Three Months Ended December 31,							Six Months Ended March 31,
	2020				2019			2021				2020
Per Share Data:
Net asset value, beginning of period	$	7.84			$	8.68		$	7.84			$	8.68
Net investment income ⁽¹⁾		0.12				0.15			0.25				0.31
Net realized and change in unrealized gain ⁽¹⁾		0.94				0.14
Net increase in net assets resulting from operations ⁽¹⁾		1.06				0.29
Net realized and change in unrealized gain (loss)⁽¹⁾									1.39				(0.92	)
Net increase (decrease) in net assets resulting from operations ⁽¹⁾									1.64				(0.61	)
Distributions to stockholders^{(1), (2)}		(0.12	)			(0.18	)		(0.24	)			(0.36	)
Net asset value, end of period	$	8.78			$	8.79		$	9.24			$	7.71
Per share market value, end of period	$	4.61			$	6.53		$	5.65			$	2.59
Total return* ⁽³⁾		48.38	%			7.18	%		85.65	%			(56.33	)%
Shares outstanding at end of period		67,045,105				67,045,105			67,045,105				67,045,105
Ratios**/ Supplemental Data:
Ratio of operating expenses to average net assets ⁽⁴⁾		3.97	%	⁽⁸⁾		4.75	%		3.86	%	⁽⁸⁾		5.26	%
Ratio of interest and expenses on debt to average net assets ⁽⁵⁾		3.67	%			6.05	%		3.47	%			6.16	%
Ratio of total expenses to average net assets ⁽⁵⁾		7.64	%	⁽⁸⁾		10.80	%		7.33	%	⁽⁸⁾		11.42	%
Ratio of net investment income to average net assets ⁽⁵⁾		6.10	%			6.95	%		5.99	%			7.09	%
Net assets at end of period	$	588,797,190			$	589,040,059		$	619,246,895			$	516,679,237
Weighted average debt outstanding ⁽⁶⁾	$	584,745,097			$	706,751,095		$	569,209,601			$	699,915,641
Weighted average debt per share^{(1), (6)}	$	8.72			$	10.54		$	8.49			$	10.44
Asset coverage per unit ⁽⁷⁾	$	2,320			$	1,947		$	2,335			$	1,608
Portfolio turnover ratio		25.25	%			9.71	%		25.88	%			7.14	%

The annualized weighted average cost of debt for the ~~three~~six months ended ~~December~~March 31, ~~2020~~2021 and ~~2019,~~2020, inclusive of the fee on the undrawn commitment under the Truist Credit Facility and amortized upfront fees on SBA debentures and 2024 Notes, was ~~3.4%~~3.5% and ~~5.0%~~5.1%, respectively. As of ~~December~~March 31, ~~2020,~~2021, in accordance with the 1940 Act, with certain limited exceptions, we were only allowed to borrow amounts such that we are in compliance with a 150% asset coverage ratio requirement after such borrowing, excluding SBA debentures, pursuant to exemptive relief from the SEC received in June 2011.

On February 5, 2019, our stockholders approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Consolidated Appropriations Act of 2018 (which includes the SBCAA), as approved by our board of directors on November 13, 2018. As a result, the asset coverage requirement applicable to us for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity), subject to compliance with certain disclosure requirements. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, our asset coverage ratio, as computed in accordance with the 1940 Act, was ~~232%~~234% and 208%, respectively.

On February 22, 2019, Funding I closed the BNP Credit Facility for up to $250.0 million (increased to $275.0 million as of November 6, 2020) in borrowings with certain lenders and BNP Paribas, as administrative agent, and The Bank of New York Mellon Trust Company, N.A., as collateral agent. As of July 31, 2020, Funding I is no longer a subsidiary of the Company consolidated in our financial statements and thus the BNP Credit Facility is no longer presented on the Statement of Assets and Liabilities (See Note 4). The BNP Credit Facility is secured by all of the assets of Funding I. Prior to deconsolidation on July 31, 2020, we owned 100% of the equity interest in Funding I and treated the indebtedness of Funding I as our leverage. Our Investment Adviser serves as the servicer to Funding I in connection with the BNP Credit Facility.

As of ~~December~~March 31, ~~2020,~~2021, we had athe multi-currency Truist Credit Facility for up to $475.0 million in borrowings with certain lenders and Truist Bank (formerly SunTrust Bank), acting as administrative agent, and JPMorgan Chase Bank, N.A., acting as syndication agent for the lenders. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, we had ~~$355.5~~$375.5 million and $388.3 million, respectively, in outstanding borrowings under the Truist Credit Facility. The Truist Credit Facility had a weighted average interest rate of ~~2.4%~~2.5% and 2.5%, respectively, exclusive of the fee on undrawn commitments, as of ~~December~~March 31, ~~2020~~2021 and September 30, ~~2020~~.2020. The Truist Credit Facility is a revolving facility with a stated maturity date of September 4, 2024 ($40.0 million of the $475 million commitment will mature May 25, 2022), a one-year term-out period on September 4, 2023 ($40.0 million of the $475 million commitment has a one year term-out period on May 25, 2021) and pricing set at 225 basis points over LIBOR (or an alternative risk-free floating interest rate index). As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, we had ~~$119.5~~$99.5 million and $86.7 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base ~~restrictions.~~restrictions. The Truist Credit Facility is secured by substantially all of our assets, excluding assets held by SBIC II. As of ~~December~~March 31, ~~2020,~~2021, we were in compliance with the terms of the Truist Credit Facility.

SBIC II is able to borrow funds from the SBA against regulatory capital (which approximates equity capital) that is paid-in and is subject to customary regulatory requirements including an examination by the SBA. We have funded SBIC II with $75.0 million of equity capital and it had SBA debentures outstanding of $108.5 million and $118.5 million as of ~~both December~~March 31, ~~2020~~2021 and September 30, ~~2020.~~2020, respectively. SBA debentures are non-recourse to us and may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a market-driven spread over 10-year U.S. Treasury Notes. Under current SBA regulations, a SBIC may individually borrow to a maximum of $175.0 million, which is up to twice its potential regulatory capital, and as part of a group of SBICs under common control may borrow a maximum of $350 million in the aggregate.

As of both ~~December~~March 31, ~~2020~~2021 and September 30, 2020, SBIC II had an initial $150.0 million in debt commitments, all of which were drawn. During both the three and six months ended ~~December~~March 31, ~~2020~~2021, $10.0 million in SBA debentures were repaid. During the three and ~~2019,~~six months ended March 31, 2020, zero and $16.5 million in SBA debentures were repaid, respectively. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, the unamortized fees on the SBA debentures were ~~$2.6~~$2.4 million and $2.7 million, respectively. The SBA debentures’ upfront fees of 3.4% consist of a commitment fee of 1.0% and an issuance discount of 2.4%, which are being amortized.

Issuance Dates	Maturity	Fixed All-in Coupon Rate ⁽¹⁾			As of December 31, 2020 Principal Balance		Maturity	Fixed All-in Coupon Rate ⁽¹⁾			As of March 31, 2021 Principal Balance
March 23, 2016	March 1, 2026		2.9	%	$	22,500,000	March 1, 2026		2.9	%	$	22,500,000
September 21, 2016	September 1, 2026		2.4			10,000,000
September 20, 2017	September 1, 2027		2.9			27,500,000	September 1, 2027		2.9			27,500,000
March 21, 2018	March 1, 2028		3.5			58,500,000	March 1, 2028		3.5			58,500,000
Weighted Average Rate / Total			3.2	%	$	118,500,000			3.2	%	$	108,500,000

Issuance Dates	Maturity	Fixed All-in Coupon Rate ⁽¹⁾			As of September 30, 2020 Principal Balance		Maturity	Fixed All-in Coupon Rate ⁽¹⁾			As of September 30, 2020 Principal Balance
March 23, 2016	March 1, 2026		2.9	%	$	22,500,000	March 1, 2026		2.9	%	$	22,500,000
September 21, 2016	September 1, 2026		2.4			10,000,000	September 1, 2026		2.4			10,000,000
September 20, 2017	September 1, 2027		2.9			27,500,000	September 1, 2027		2.9			27,500,000
March 21, 2018	March 1, 2028		3.5			58,500,000	March 1, 2028		3.5			58,500,000
Weighted Average Rate / Total			3.2	%	$	118,500,000			3.2	%	$	118,500,000

The SBIC program is designed to stimulate the flow of capital into eligible businesses. Under SBA regulations, SBIC II is subject to regulatory requirements, including making investments in SBA eligible businesses, investing at least 25% of regulatory capital in eligible smaller businesses, as defined under the 1958 Act, placing certain limitations on the financing terms of investments, prohibiting investment in certain industries and requiring capitalization thresholds that limit distributions to us, and is subject to periodic audits and examinations of its financial statements that are prepared on a basis of accounting other than GAAP (for example, fair value, as defined under ASC 820, is not required to be used for assets or liabilities for such compliance reporting). As of ~~December~~March 31, ~~2020,~~2021, SBIC II was in compliance with its regulatory requirements.

As of both ~~December~~March 31, ~~2020~~2021 and September 30, 2020, we had $86.3 million in aggregate principal amount of 2024 Notes outstanding. Interest on the 2024 Notes is paid quarterly on January 15, April 15, July 15 and October 15, at a rate of 5.50% per year. The 2024 Notes mature on October 15, 2024. The 2024 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2024 Notes are structurally subordinated to our SBA debentures and the assets pledged or secured under our Credit Facilities. The 2024 Notes may be repurchased from time to time in open market purchases and privately-negotiated transactions.

From time to time, we, the Investment Adviser or the Administrator may be a party to legal proceedings, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations. Unfunded debt and equity investments, if any, are disclosed in the Consolidated Schedules of Investments. Under these arrangements, we may be required to supply a letter of credit to a third party if the portfolio company were to request a letter of credit. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, we had ~~$44.8~~$47.4 million and $37.4 million, respectively, in commitments to fund investments. ~~For the same periods, there were no letters of credit issued.~~

We must determine which, if any, of our unconsolidated controlled portfolio companies is a "significant subsidiary" within the meaning of Regulation S-X. We have determined that, as of September 30, 2020, PennantPark Senior Loan Fund, LLC, PT Networks, LLC and RAM Energy Holdings LLC triggered at least one of the significance tests. As a result and in accordance with Rule 10-01(b) of Regulation S-X under the Securities Act, presented below is summarized unaudited financial information for PT Networks, LLC and RAM Energy Holdings LLC for the three and six months ended ~~December~~March 31, ~~2020~~2021 and ~~2019.~~2020. Similarly, while PennantPark Senior Loan Fund, LLC did not trigger the requirement to present summarized financial information in accordance with Rule 10-01(b) of Regulation S-X, the Statement of Assets and Liabilities as well as the Statement of Operations for PennantPark Senior Loan Fund, LLC has been included in Note 4.

	Three Months Ended December 31,						Three Months Ended March 31,						Six Months Ended March 31,
Income Statement ⁽¹⁾	2020			2019			2021			2020			2021			2020
Total revenue	$	59,230		$	56,887		$	61,167		$	52,405		$	120,397		$	109,293
Total expenses		(63,880	)		(50,386	)		(64,501	)		(60,283	)		(130,338	)		(110,668	)
Net (loss) income	$	(4,650	)	$	6,501
Net loss							$	(3,334	)	$	(7,878	)	$	(9,941	)	$	(1,375	)

	Three Months Ended December 31,						Three Months Ended March 31,						Six Months Ended March 31,
Income Statement ⁽¹⁾	2020			2019			2021			2020			2021			2020
Total revenue	$	5,969		$	6,929		$	21,121		$	18,274		$	27,090		$	25,203
Total expenses		(7,340	)		(10,455	)		(10,357	)		(12,616	)		(17,697	)		(23,070	)
Net loss	$	(1,371	)	$	(3,526	)
Net income							$	10,764		$	5,658		$	9,393		$	2,133

On April 14, 2021, we entered into an underwriting agreement, or the Underwriting Agreement, by and among the Company, the Adviser, the Administrator and Raymond James & Associates, Inc., Keefe, Bruyette & Woods, Inc. and Truist Securities, Inc., as representatives of the several underwriters named on Schedule A to the Underwriting Agreement, in connection with the issuance and sale of $150.0 million aggregate principal amount of the Company’s 4.5% Notes due 2026, or the 2026 Notes. On April 21, 2021, we closed the transaction and issued $150.0 million in aggregate principal amount of our 2026 Notes at a public offering price per note of 99.4%. Interest on the 2026 Notes is paid semi-annually on May 1 and November 1 of each year, at a rate of 4.5% per year, commencing November 1, 2021. The 2026 Notes mature on May 1, 2026 and may be redeemed in whole or in part at our option subject to a make-whole premium if redeemed more than three months prior to maturity. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 2026 Notes are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. We do not intend to list the 2026 Notes on any securities exchange or automated dealer quotation system.

To the Stockholders and Board of Directors of PennantPark Investment Corporation and its Subsidiaries

We have reviewed the accompanying consolidated statement of assets and liabilities of PennantPark Investment Corporation and its Subsidiaries (collectively referred to as the ~~“Company”)~~Company), including the consolidated schedule of investments, as of ~~December~~March 31, ~~2020,~~2021, and the related consolidated statements of operations and changes in net assets for the three-month and six-month periods ended March 31, 2021 and 2020, and cash flows for the ~~three-month~~six-month periods ended ~~December~~March 31, ~~2020~~2021 and ~~2019,~~2020, and the related notes to the consolidated financial statements (collectively, the interim financial information or financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information ~~referred to above~~ for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of assets and liabilities of the Company, including the consolidated schedule of investments, as of September 30, 2020, and the related consolidated statements of operations, changes in net assets, and cash flows for the year then ended (not presented herein), and in our report dated November 19, 2020, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities as of September 30, 2020, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities from which it has been derived.

These interim financial statements are the responsibility of the Company’s management. We conducted our reviews in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

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

This Report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements that constitute forward-looking statements, which relate to us and our consolidated subsidiaries regarding future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our Company, our industry, our beliefs and our assumptions. The forward-looking statements contained in this Report involve risks and uncertainties, including statements as to:

We use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. You should not place undue influence on the forward-looking statements as our actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors in “Risk Factors” and elsewhere in this Report.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include our ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Report should not be regarded as a representation by us that our plans and objectives will be achieved.

We have based the forward-looking statements included in this Report on information available to us on the date of this Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements in this Report, 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 SEC, including reports on Form 10-Q/K and current reports on Form 8-K.

You should understand that under Section 27A(b)(2)(B) of the Securities Act and Section 21E(b)(2)(B) of the Exchange Act, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act.

The following analysis of our financial condition and results of operations should be read in conjunction with our Consolidated Financial Statements and the related notes thereto contained elsewhere in this Report.

PennantPark Investment Corporation is a BDC whose objectives are to generate both current income and capital appreciation while seeking to preserve capital through debt and equity investments primarily made to U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments.

We believe middle-market companies offer attractive risk-reward to investors due to a limited amount of capital available for such companies. We seek to create a diversified portfolio that includes first lien secured debt, second lien secured debt, subordinated debt and equity investments by investing approximately $10 million to $50 million of capital, on average, in the securities of middle-market companies. We expect this investment size to vary proportionately with the size of our capital base. We use the term “middle-market” to refer to companies with annual revenues between $50 million and $1 billion. The companies in which we invest are typically highly leveraged, and, in

most cases, are not rated by national rating agencies. If such companies were rated, we believe that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor’s system) from the national rating agencies. Securities rated below investment grade are often referred to as “leveraged loans” or “high yield”

securities or “junk bonds” and are often higher risk compared to debt instruments that are rated above investment grade and have speculative characteristics. Our debt investments may generally range in maturity from three to ten years and are made to U.S. and, to a limited extent, non-U.S. corporations, partnerships and other business entities which operate in various industries and geographical regions.

Our investment activity depends on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity for such companies, the general economic environment and the competitive environment for the types of investments we make. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives.

PennantPark Investment Corporation, a Maryland corporation organized in January 2007, is a closed-end, externally managed, non-diversified investment company that has elected to be treated as a BDC under the 1940 Act. In addition, for federal income tax purposes we have elected to be treated, and intend to qualify annually, as a RIC under the Code.

SBIC II, our wholly owned subsidiary, was organized as a Delaware limited partnership in 2012. SBIC II received a license from the SBA to operate as a SBIC under Section 301(c) of the 1958 Act. SBIC II’s objectives are to generate both current income and capital appreciation through debt and equity investments generally by investing with us in SBA eligible businesses that meet the investment selection criteria used by PennantPark Investment.

Our investment activities are managed by the Investment Adviser. Under our Investment Management Agreement, we have agreed to pay our Investment Adviser an annual base management fee based on our average adjusted gross assets as well as an incentive fee based on our investment performance. PennantPark Investment, through the Investment Adviser, provides similar services to SBIC II under its investment management agreement. SBIC II’s investment management agreement does not affect the management and incentive fees on a consolidated basis. We have also entered into an Administration Agreement with the Administrator. Under our Administration Agreement, we have agreed to reimburse the Administrator for our allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer and their respective staffs. PennantPark Investment, through the Administrator, provides similar services to SBIC II under its administration agreement with us. Our board of directors, a majority of whom are independent of us, provides overall supervision of our activities, and the Investment Adviser supervises our day-to-day activities.

COVID-19 was first detected in December 2019 ~~in the city of Wuhan in China~~ and has since been identified as a global pandemic by the World Health Organization. ~~In response, governmental authorities~~The effect of ~~affected jurisdictions, including those~~the ongoing COVID-19 pandemic or any worsening thereof, uncertainty relating to more contagious strains of the virus, the length of economic recovery in the ~~United States, have imposed travel restrictions~~U.S. and ~~required~~globally and the ~~temporary closures~~speed and efficiency of ~~many corporate offices, retail stores, manufacturing facilities, factories~~the vaccination process may continue to create stress on the market and ~~other common places of public congregation. These restrictions and “stay-at-home” orders have essentially resulted~~could continue to or in the shutdown of all non-essential businesses for a period of time, as defined by each governmental authority imposing the respective orders. The economic impact resulting from such restrictions has adversely affected the business operations of some, if not all, offuture may affect our portfolio companies, as well as our own operations and the operations of our Adviser. While some jurisdictions have either lifted or started to ease certain restrictions on businesses, a resurgence of COVID-19, including the emergence of a more contagious strain of COVID-19, has resulted in additional closures.companies. We cannot predict with any level of certainty the ~~magnitude~~full impact of the COVID-19 pandemic, including any worsening thereof or its duration in the United States and globally and any ongoing impact to our business operations or the business operations of our portfolio ~~companies due~~companies. Depending on the length and magnitude of the disruption to the ~~business and supply-chain disruptions caused by the COVID-19 pandemic and the resulting governmental responses. However,~~operations of our portfolio companies, we expect ~~such adverse effects to continue for the duration of the pandemic, and potentially for some time thereafter.~~

~~Due to the nature of these governmental restrictions and their potentially long-lasting duration, some~~that certain portfolio companies ~~especially those in vulnerable industries such as retail, food and beverage and travel, have experienced significant~~could experience financial distress and ~~may~~possibly default on their financial obligations to us and their other capital providers. Moreover, certain of our portfolio companies that remain subject to prolonged and severe financial distress, have substantially curtailed their operations, deferred capital expenditures, furloughed or laid off workers and/or terminated relationships with their service providers.providers in the future. These developments ~~will likely~~could continue to impact the value of our investments in such portfolio companies.

The COVID-19 pandemic, ~~will likely~~including any worsening thereof, may continue to have an adverse impact on the global economy and result in a period, however long, of global economic slowdown. Particularly, COVID-19 presents material uncertainty and risk with respect to our future performance and financial results as well as the future performance and financial results of our portfolio companies. While we are unable to predict the ultimate adverse effect of the COVID-19 pandemic, or any worsening thereof, on our results of operation, we have identified certain factors that are likely to affect market, economic and geopolitical conditions, and thereby may adversely affect our business, including:

The business disruption and financial harm resulting from COVID-19 experienced by our portfolio companies ~~are likely to~~may reduce, over time, the amount of interest and dividend income that we receive from such investments and may require us to provide an increase of capital to such companies in the form of follow on investments. In connection with the adverse effects of the COVID-19 pandemic, we may also need to restructure the capitalization of some of our portfolio companies, which could result in reduced interest payments, an increase in the amount of PIK interest we receive or a permanent reduction in the value of our investments. If our net investment income decreases, the percentage of our cash flows dedicated to debt servicing and distribution payments to stockholders would subsequently increase. This has required us to reduce the amount of our distributions to stockholders as compared to distributions in the same quarter of the prior year. ~~The~~Although we had no non-accrual assets during the quarter ended March 31, 2021, the continuing impact of the COVID-19 pandemic, or any worsening thereof, may result in ~~additional~~ portfolio investments being placed on non-accrual status in the future.

Additionally, as of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, our asset coverage ratio, as computed in accordance with the 1940 Act, was ~~232%~~234% and 208%, respectively. The Truist Credit Facility includes standard covenants and events of default provisions. If we fail to make ~~payments~~the required ~~under such facilities~~payments or breach the covenants therein, it could result in a default under the Truist Credit Facility. Failure to cure such default or obtain a waiver from the appropriate party would result in an event of default, and the lenders may accelerate the repayment of our indebtedness under the Truist Credit Facility, such that all amounts owed are due immediately at the time of default. Such an action would negatively affect our liquidity, business, financial condition, results of operations, cash flows and ability to pay distributions to our stockholders.

We are also subject to financial risks, including changes in market interest rates. As of ~~December~~March 31, ~~2020,~~2021, our debt portfolio consisted of 92% variable-rate investments. The variable-rate loans are usually based on a floating interest rate index such as LIBOR and typically have durations of three months after which they reset to current market interest rates. Variable-rate investments subject to a floor generally reset by reference to the current market index after one to nine months only if the index exceeds the floor. In addition, the Truist Credit Facility also has floating rate interest provisions, with pricing set at 225 basis points over LIBOR (or an alternative risk-free floating interest rate index). In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks have reduced interest rates, which has caused LIBOR to decrease. Due to such rates, our gross investment income ~~has decreased,~~may decrease, which could result in a decrease in our net investment income if such decreases in LIBOR are not offset by, among other things, a corresponding increase in the spread over LIBOR that we earn on such loans or a decrease in the interest rate of our floating interest rate liabilities tied to LIBOR. See “Item 3. Quantitative and Qualitative Disclosures About Market Risk” below.

In addition, we ~~activated~~have continued to implement our business continuity planning strategy. Our priority has been to safeguard the health of our employees and to ensure continuity of business operations on behalf of our investors. As a result of ~~the execution of~~ our business continuity planning strategy, nearly all of our employees ~~are working~~continue to work remotely. Our systems and infrastructure have continued to support our business operations. We implemented a heightened level of communication across senior management, our investment team and our board of directors, and we have proactively engaged with our vendors on a regular basis to ensure they continue to meet our criteria for business continuity.

We generate revenue in the form of interest income on the debt securities we hold and capital gains and dividends, if any, on investment securities that we may acquire in portfolio companies. Our debt investments, whether in the form of first lien secured debt, second lien secured debt or subordinated debt, typically have a term of three to ten years and bear interest at a fixed or a floating rate. Interest on debt securities is generally payable quarterly. In some cases, our investments provide for deferred interest payments and PIK interest. The principal amount of the debt securities and any accrued but unpaid interest generally becomes due at the maturity date. In addition, we may generate revenue in the form of amendment, commitment, origination, structuring or diligence fees, fees for providing significant managerial assistance and possibly consulting fees. Loan origination fees, OID and market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.

Our primary operating expenses include the payment of a management fee and the payment of an incentive fee to our Investment Adviser, if any, our allocable portion of overhead under our Administration Agreement and other operating costs as detailed below. Our management fee compensates our Investment Adviser for its work in identifying, evaluating, negotiating, consummating and monitoring our investments. Additionally, we pay interest expense on the outstanding debt and unused commitment fees on undrawn amounts, under our various debt facilities. We bear all other direct or indirect costs and expenses of our operations and transactions, including:

Generally, during periods of asset growth, we expect our general and administrative expenses to be relatively stable or to decline as a percentage of total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities would be additive to the expenses described above.

As of ~~December~~March 31, ~~2020,~~2021, our portfolio totaled ~~$1,127.1~~$1,175.2 million, which consisted of ~~$425.2~~$443.5 million of first lien secured debt, ~~$195.4~~$194.6 million of second lien secured debt, ~~$116.8~~$118.2 million of subordinated debt (including $64.2 million in PSLF) and ~~$389.7~~$419.0 million of preferred and common equity (including ~~$39.0~~$40.2 million in PSLF). Our debt portfolio consisted of 92% variable-rate ~~investments and 8% fixed-rate~~ investments. As of ~~December~~March 31, ~~2020,~~2021, we ~~had no~~did not have any portfolio companies on non-accrual. Overall, the portfolio had net unrealized appreciation of ~~$9.7~~$42.9 million as of ~~December~~March 31, ~~2020.~~2021. Our overall portfolio consisted of 8183 companies with an average investment size of ~~$13.9~~$14.2 million, had a weighted average yield on interest bearing debt investments of 9.3% and was invested 38% in first lien secured debt, ~~17%~~16% in second lien secured debt, 10% in subordinated debt (including 6%5% in PSLF) and ~~35%~~36% in preferred and common equity (including 3% in PSLF). As of ~~December~~March 31, ~~2020,~~ 2021, all of the investments held by PSLF were first lien secured debt.

As of September 30, 2020, our portfolio totaled $1,081.8 million, which consisted of $439.0 million of first lien secured debt, $220.8 million of second lien secured debt, $113.6 million of subordinated debt (including $63.0 million in PSLF) and $308.3 million of preferred and common equity (including $36.3 million in PSLF). Our debt portfolio consisted of 93% variable-rate ~~investments and 7% fixed-rate~~ investments. As of September 30, 2020, we had two portfolio companies on non-accrual, representing 4.9% and 3.4% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized depreciation of $83.8 million as of September 30, 2020. Our overall portfolio consisted of 80 companies with an average investment size of $13.5 million, had a weighted average yield on interest bearing debt investments of 8.9% and was invested 41% in first lien secured debt, 20% in second lien secured debt, 10% in subordinated debt (including 6% in PSLF) and 29% in preferred and common equity (including 3% in PSLF). As of September 30, 2020, all of the investments held by PSLF were first lien secured debt.

For the three months ended ~~December~~March 31, ~~2020,~~2021, we invested ~~$68.2~~$74.8 million in ~~four~~three new and 15eight existing portfolio companies with a weighted average yield on debt investments of ~~9.9%~~7.9%. Sales and repayments of investments for the three months ended ~~December~~March 31, ~~2020~~2021 totaled ~~$102.6~~$65.0 million.

For the ~~three~~six months ended ~~December~~March 31, ~~2019,~~2021, we invested ~~$173.7~~$143.0 million in 13seven new and 1523 existing portfolio companies with a weighted average yield on debt investments of 8.8%. Sales and repayments of investments for the six months ended March 31, 2021 totaled $167.6 million.

For the three months ended ~~December~~March 31, ~~2019~~2020, we invested $106.8 million in eight new and 24 existing portfolio companies with a weighted average yield on debt investments of 8.2%. Sales and repayments of investments for the three months ended March 31, 2020 totaled ~~$31.2~~$16.4 million. For the six months ended March 31, 2020, we invested $280.5 million in 21 new and 39 existing portfolio companies with a weighted average yield on debt investments of 8.6%. Sales and repayments of investments for the six months ended March 31, 2020 totaled $47.5 million.

As of ~~December~~March 31, ~~2020~~2021, ~~PSLF~~’sPSLF’s portfolio totaled ~~$ 351.9~~$381.7 million, consisted of 3640 companies with an average investment size of ~~$9.8~~$9.5 million and had a weighted average yield on debt investments of 7.3%.

As of September 30, 2020~~PSLF~~’s, PSLF’s portfolio totaled $353.4 million, consisted of 37 companies with an average investment size of $9.6 million and had a weighted average yield on debt investments of 7.3%.

For the three months ended ~~December~~March 31, ~~2020,~~ 2021, PSLF invested ~~$30.8~~$32.5 million (of which ~~$22.3~~$15.5 million was purchased from the ~~Company~~)Company) in ~~two~~four new and ~~four~~two existing portfolio companies with a weighted average yield on debt investments of ~~7.0%~~8.0%. ~~PSLF~~’s PSLF’s sales and repayments of investments for the same period totaled ~~$35.8~~$4.9 million. For the six months ended March 31, 2021, PSLF invested $63.3 million (of which $37.8 million was purchased from the Company) in six new and six existing portfolio companies with a weighted average yield on debt investments of 7.5%. PSLF’s sales and repayments of investments for the same period totaled $40.7 million.

The preparation of our Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of income and expenses during the reported periods. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Actual results could differ from these estimates due to changes in the economic and regulatory environment, financial markets and any other parameters used in determining such estimates and assumptions, including the credit worthiness of our portfolio companies and the global outbreak of COVID-19. We may reclassify certain prior period amounts to conform to the current period presentation. We have eliminated all intercompany balances and transactions. References to ASC serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the Consolidated Financial Statements are issued. In addition to the discussion below, we describe our critical accounting policies in the notes to our Consolidated Financial Statements.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Generally, most of our investments, our Credit Facilities and our SBA debentures are classified as Level 3. Our 2024 Notes are classified as Level 1, as they were valued using the closing price from the primary exchange. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.

Generally, the carrying value of our consolidated financial liabilities approximates fair value. We have adopted the principles under ASC 825-10, ~~Financial Instruments, or ASC 825-10,~~ which provides companies with an option to report selected financial assets and liabilities at fair value, and made an irrevocable election to apply ASC 825-10 to our Credit Facilities. We elected to use the fair value option for the Credit Facilities to align the measurement attributes of both our assets and liabilities while mitigating volatility in earnings from using different measurement attributes. Due to that election and in accordance with GAAP, we did not incur any expenses relating to amendment costs on the Credit Facilities during for both the three and six months ended ~~December~~March 31, ~~2020~~2021 and ~~2019.~~2020. ASC 825-10 establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect on earnings of a company’s choice to use fair value. ASC 825-10 also requires us to display the fair value of the selected assets and liabilities on the face of the Consolidated Statements of Assets and Liabilities and changes in fair value of the Credit Facilities are reported in our Consolidated Statements of Operations. We ~~did~~elected not ~~elect~~ to apply ASC 825-10 to any other financial assets or liabilities, including the 2024 Notes and the SBA debentures.

For the three and six months ended ~~December~~March 31, ~~2020,~~2021, the Truist Credit Facility had a net change in unrealized appreciation of ~~$13.1 million.~~$3.8 million and $16.9 million, respectively. For the three and six months ended ~~December~~March 31, ~~2019,~~2020, our Credit Facilities had a net change in unrealized ~~appreciation~~depreciation of ~~$2.6 million.~~$48.9 million and $46.4 million, respectively. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, the net unrealized depreciation on the Truist Credit Facility totaled ~~$6.4~~$2.7 million and $19.6 million, respectively. We use a nationally recognized independent valuation service to measure the fair value of our Credit Facilities in a manner consistent with the valuation process that our board of directors uses to value our investments.

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, OID, market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. We record prepayment penalties earned on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.

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

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

Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

We have investments in our portfolio which contain a PIK interest provision. PIK interest is added to the principal balance of the investment and is recorded as income. In order for us to maintain our ability to be subject to tax as a RIC, substantially all of this income must be paid out to stockholders in the form of dividends for U.S. federal income tax purposes, even though we may not have collected any cash with respect to interest on PIK securities.

We have elected to be treated, and intend to qualify annually to maintain our election to be treated, as a RIC under Subchapter M of the Code. To maintain our RIC tax election, we must, among other requirements, meet certain annual source-of-income and quarterly asset diversification requirements. We also must annually distribute dividends for U.S. federal income tax purposes to our stockholders out of the assets legally available for distribution of an amount generally at least equal to 90% of the sum of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, or investment company taxable income, determined without regard to any deduction for dividends paid.

Although not required for us to maintain our RIC tax status, in order to preclude the imposition of a 4% nondeductible U.S. federal excise tax imposed on RICs, we must distribute dividends for U.S. federal income tax purposes to our stockholders in respect of each calendar year of an amount at least equal to the sum of (1) 98% of our net ordinary income (subject to certain deferrals and elections) for the calendar year, (2) 98.2% of the excess, if any, of our capital gains over our capital losses, or capital gain net income (adjusted for certain ordinary losses) for the one-year period ending on October 31 of the calendar year plus (3) the sum of any net ordinary income plus capital gain net income for preceding years that was not distributed during such years and on which we did not incur any U.S. federal income tax, or the Excise Tax Avoidance Requirement. In addition, although we may distribute realized net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually, out of the assets legally available for such distributions in the manner described above, we have retained and may continue to retain such net capital gains or investment company taxable income, contingent on maintaining our ability to be subject to tax as a RIC, in order to provide us with additional liquidity.

Because federal income tax regulations differ from GAAP, distributions characterized in accordance with tax regulations may differ from net investment income and net realized ~~gains~~gain recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Financial Statements to reflect their appropriate tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

We have formed and expect to continue to form certain taxable subsidiaries, including the Taxable Subsidiaries, which are subject to tax as corporations. These taxable subsidiaries allow us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code.

Set forth below are the results of operations for the three and six months ended ~~December~~March 31, ~~2020~~2021 and ~~2019.~~2020.

Investment income for the three and six months ended ~~December~~March 31, ~~2020~~2021 was ~~$18.7~~$19.2 million and $38.0 million, respectively, which was attributable to ~~$11.2~~$10.9 million and $22.1 million from first lien secured debt, ~~$4.8~~$5.8 million and $10.6 million from second lien secured debt, $1.7 million and $3.4 million from subordinated debt and ~~$1.0~~$0.9 million and $1.9 million from preferred and common ~~equity.~~equity, respectively. This compares to investment income for the three and six months ended ~~December~~March 31, ~~2019~~2020 of ~~$26.0~~$27.5 million and $53.5 million, respectively, and was attributable to ~~$16.0~~$17.5 million and $33.5 million from first lien secured debt, $7.7 million and $15.4 million from second lien secured debt and $2.3 million and $4.6 million from subordinated ~~debt.~~debt, respectively. The decrease in investment income compared to the same ~~period~~periods in the prior year was primarily due to decreases in the size of our debt portfolio and LIBOR.

Expenses for the three and six months ended ~~December~~March 31, ~~2020~~2021 totaled ~~$10.4 million.~~$10.5 million and $20.9 million, respectively. Base management fee for the same ~~period~~periods totaled ~~$4.1~~$4.3 million and $8.4 million, debt related interest and expenses totaled ~~$5.0~~$4.9 million and $9.9 million, general and administrative expenses totaled $1.1 million and $2.3 million and provision for taxes totaled $0.2 ~~million.~~million and $0.3 million, respectively. This compares to net expenses for the three and six months ended ~~December~~March 31, ~~2019,~~2020, which totaled ~~$15.8 million.~~$17.2 million and $33.0 million, respectively. Base management fee for the same ~~period~~periods totaled ~~$4.7~~$4.9 million and $9.6 million, incentive fee totaled ~~$0.7~~$1.9 million and $2.7 million, debt related interest and expenses totaled ~~$8.9~~$9.0 million and $17.8 million, general and administrative expenses totaled $1.2 million and $2.3 million and provision for taxes totaled $0.3 ~~million.~~million and $0.6 million, respectively. The decrease in expenses for the three and six months ended March 31, 2021 compared to the ~~three-month~~same period ~~ended~~ in the prior year was primarily due to ~~a decrease in LIBOR~~lower leverage costs and lower ~~leverage.~~Management Fees.

Net investment income totaled ~~$8.3~~$8.8 million and $17.1 million, or ~~$0.12~~$0.13 and $0.25 per share, for the three and ~~$10.2~~six months ended March 31, 2021, respectively. Net investment income totaled $10.3 million and $20.5 million, or $0.15 and $0.31 per share,, for the three and six months ended ~~December~~March 31, 2020, ~~and 2019,~~ respectively. The decrease in net investment income compared to the ~~three-month period ended~~same periods in the prior year was primarily due to lower investment ~~income, partially offset by lower expenses.~~income.

Sales and repayments of investments for the three and six months ended ~~December~~March 31, ~~2020~~2021 totaled ~~$102.6~~$65.0 million and $167.6 million, respectively, and net realized ~~losses~~gains (losses) totaled ~~$17.6 million.~~$0.3 million and ($17.3) million, respectively. Sales and repayments of investments for the three and six months ended ~~December~~March 31, ~~2019~~2020 totaled ~~$31.2~~$16.4 million and $47.5 million, respectively, and net realized ~~losses~~gains (losses) totaled ~~$12.0 million.~~$1.4 million and ($10.6) million, respectively. The change in realized gains/losses was primarily due to changes in the market conditions of our investments and the values at which they were realized.

Unrealized Appreciation or Depreciation on Investments and the Credit Facilities

For the three and six months ended ~~December~~March 31, ~~2020 and 2019,~~2021, we reported net change in unrealized appreciation on investments of ~~$93.5~~$33.2 million and ~~$23.6~~$126.7 million, respectively. For the three and six months ended March 31, 2020, we reported net change in unrealized depreciation on investments of $121.0 million and $97.3 million, respectively. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, our net unrealized appreciation (depreciation) on investments totaled ~~$9.7~~$42.9 million and ($83.8) million, respectively. The net change in unrealized appreciation/depreciation on our investments compared to the same period in the prior year was primarily due to unrealized gains in our equity co-investment program, including ITC Rumba, LLC (Cano Health, LLC), as well as the financial performance of certain portfolio companies primarily driven by the market disruption caused by the COVID-19 pandemic and the uncertainty surrounding its continued adverse economic impact, as discussed above under “COVID-19 Developments.”.

For the three and six months ended ~~December~~March 31, ~~2020,~~2021, the Truist Credit Facility had a net change in unrealized appreciation of ~~$13.1 million.~~$3.8 million and $16.9 million, respectively. For the three and six months ended ~~December~~March 31, ~~2019,~~2020, our Credit Facilities had a net change in unrealized ~~appreciation~~depreciation of ~~$2.6 million.~~$48.9 million and $46.4 million, respectively, respectively. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, the net unrealized depreciation on the ~~Truist~~ Credit ~~Facility~~Facilities totaled ~~$6.4~~$2.7 million and $19.6million, respectively. The net change in ~~net~~ unrealized depreciation compared to the same ~~period~~periods in the prior year was primarily due to changes in the capital markets.

Net change in net assets resulting from operations totaled ~~$71.1~~$38.5 million and $109.6 million, or ~~$1.06 per share,~~$0.57 and ~~$19.2 million, or $0.29~~$1.64 per share, for the three and six months ended ~~December~~March 31, ~~2020~~2021, respectively. Net change in net assets resulting from operations totaled ($60.3) million and ~~2019, respectively.~~ ($41.1) million, or ($0.90) and ($0.61) per share, for the three and six months ended March 31, 2020. The increase in the net change in net assets from operations for the three and six months ended ~~December~~March 31, ~~2020~~2021 compared to the same ~~period~~periods in the prior year was primarily due to unrealized gains in our equity co-investment program, including ITC Rumba, LLC (Cano Health, LLC), as well as the financial performance of certain portfolio companies primarily driven by the market disruption caused by the COVID-19 pandemic and the uncertainty surrounding its continued adverse economic impact, as discussed above under “COVID-19 Developments.”.

Our liquidity and capital resources are derived primarily from proceeds of securities offerings, debt capital and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives. As of ~~December~~March 31, ~~2020,~~2021, in accordance with the 1940 Act, with certain limited exceptions, we were only allowed to borrow amounts such that we are in compliance with a 150% asset coverage ratio requirement after such borrowing, excluding SBA debentures pursuant to exemptive relief from the SEC received in June 2011. This “Liquidity and Capital Resources” section should be read in conjunction with the “COVID-19 Developments” section above.

On February 5, 2019, our stockholders approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Consolidated Appropriations Act of 2018 (which includes the SBCAA) as approved by our board of directors on November 13, 2018. As a result, the asset coverage requirement applicable to us for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity), subject to compliance with certain disclosure requirements. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, our asset coverage ratio, as computed in accordance with the 1940 Act, was ~~232%~~234% and 208%, respectively.

On February 22, 2019, Funding I closed the BNP Credit Facility for up to $250.0 million (increased to $275.0 million as of November 6, 2020) in borrowings with certain lenders and BNP Paribas, as administrative agent, and The Bank of New York Mellon Trust Company, N.A., as collateral agent. As of July 31, 2020, Funding I is no longer a subsidiary of the Company consolidated in our financial statements and thus the BNP Credit Facility is no longer presented on the Statement of Assets and Liabilities (See Note 4). The BNP Credit Facility is secured by all of the assets of Funding I. Prior to deconsolidation on July 31, 2020, we owned 100% of the equity interest in Funding I and treat the indebtedness of Funding I as our leverage. Our Investment Adviser serves as the servicer to Funding I in connection with the BNP Credit Facility.

As of ~~December~~March 31, ~~2020,~~2021, we had athe multi-currency Truist Credit Facility for up to $475.0 million in borrowings with certain lenders and Truist Bank, acting as administrative agent, and JPMorgan Chase Bank, N.A., acting as syndication agent for the lenders. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, we had ~~$355.5~~$375.5 million and $388.3 million, respectively, in outstanding borrowings under the Truist Credit Facility. The Truist Credit Facility had a weighted average interest rate of ~~2.4%~~2.5% and 2.5%, ~~respectively,~~ exclusive of the fee on undrawn commitments, as of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, respectively. The Truist Credit Facility is a revolving facility with a stated maturity date of September 4, 2024 ($40.0 million of the $475 million commitment will mature May 25, 2022), a one-year term-out period on September 4, 2023 ($40.0 million of the $475 million commitment has a ~~one year~~one-year term-out period on May 25, 2021) and pricing set at 225 basis points over LIBOR (or an alternative risk-free interest rate index). As of March 31, 2021 and September 30, 2020, we had $99.5 million and $86.7 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base restrictions. The Truist Credit Facility is secured by substantially all of our assets excluding assets held by SBIC II. As of ~~December~~March 31, ~~2020 and September 30, 2020, we had $119.5 million and $86.7 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base restrictions.~~ ~~The Truist Credit Facility is secured by substantially all of our assets, excluding assets held by SBIC II.~~ ~~As of December 31, 2020,~~2021, we were in compliance with the terms of the Truist Credit Facility.

As of ~~December~~March 31, ~~2020,~~2021, we had $86.3 million in aggregate principal amount of 2024 Notes outstanding. Interest on the 2024 Notes is paid quarterly on January 15, April 15, July 15 and October 15, at a rate of 5.50% per year, commencing January 15, 2020. The 2024 Notes mature on October 15, 2024. The 2024 Notes are direct unsecured obligations and rank pari passu in right of payment with future unsecured unsubordinated indebtedness. The 2024 Notes are structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, financing vehicles, or similar facilities. The 2024 Notes may be redeemed in whole or in part at our option on or after October 15, 2021 at a redemption price of 100% of the outstanding principal amount of the 2024 Notes plus accrued and unpaid interest.

We may raise additional equity or debt capital through both registered offerings off our shelf registration statement and private offerings of securities, by securitizing a portion of our investments or borrowing from the SBA, among other sources. Any future additional debt capital we incur, to the extent it is available, may be issued at a higher cost and on less favorable terms and conditions than ~~our~~the Truist Credit Facility and SBA debentures. Furthermore, ~~availability under our~~the Truist Credit Facility availability depends on various covenants and restrictions. The primary use of existing funds and any funds raised in the future is expected to be for repayment of indebtedness, investments in portfolio companies, cash distributions to our stockholders or for other general corporate or strategic purposes such as our stock repurchase program.

SBIC II is able to borrow funds from the SBA against regulatory capital (which approximates equity capital) that is paid-in and is subject to customary regulatory requirements including an examination by the SBA. We have funded SBIC II with $75.0 million of equity capital and it had SBA debentures outstanding of $108.5 million and $118.5 million as of ~~December~~March 31, ~~2020.~~2021 and September 30, 2020, respectively. SBA debentures are non-recourse to us and may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a market-driven spread over 10-year U.S. Treasury Notes. Under current SBA regulations, a SBIC may individually borrow up to a maximum of $175.0 million, which is up to twice its potential regulatory capital, and as part of a group of SBICs under common control may borrow a maximum of $350 million in the aggregate.

Our fixed-rate SBA debentures as of ~~December~~March 31, ~~2020~~2021 and September 30, 2020 were as follows:

Issuance Dates	Maturity	Fixed All-in Coupon Rate ⁽¹⁾			As of December 31, 2020 Principal Balance		Maturity	Fixed All-in Coupon Rate ⁽¹⁾			As of March 31, 2021 Principal Balance
March 23, 2016	March 1, 2026		2.9	%	$	22,500,000	March 1, 2026		2.9	%	$	22,500,000
September 21, 2016	September 1, 2026		2.4			10,000,000
September 20, 2017	September 1, 2027		2.9			27,500,000	September 1, 2027		2.9			27,500,000
March 21, 2018	March 1, 2028		3.5			58,500,000	March 1, 2028		3.5			58,500,000
Weighted Average Rate / Total			3.2	%	$	118,500,000			3.2	%	$	108,500,000

Issuance Dates	Maturity	Fixed All-in Coupon Rate ⁽¹⁾			As of September 30, 2020 Principal Balance		Maturity	Fixed All-in Coupon Rate ⁽¹⁾			As of September 30, 2020 Principal Balance
March 23, 2016	March 1, 2026		2.9	%	$	22,500,000	March 1, 2026		2.9	%	$	22,500,000
September 21, 2016	September 1, 2026		2.4			10,000,000	September 1, 2026		2.4			10,000,000
September 20, 2017	September 1, 2027		2.9			27,500,000	September 1, 2027		2.9			27,500,000
March 21, 2018	March 1, 2028		3.5			58,500,000	March 1, 2028		3.5			58,500,000
Weighted Average Rate / Total			3.2	%	$	118,500,000			3.2	%	$	118,500,000

In accordance with the 1940 Act, with certain limited exceptions, PennantPark Investment is only allowed to borrow amounts such that our required 150% asset coverage ratio is met after such borrowing. As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, we excluded the principal amounts of our SBA debentures from our asset coverage ratio pursuant to SEC exemptive relief. In 2011, we received exemptive relief from the SEC allowing us to modify the asset coverage ratio requirement to exclude the SBA debentures from the calculation. Accordingly, our ratio of total assets on a consolidated basis to outstanding indebtedness may be less than 150% which, while providing increased investment flexibility, also increases our exposure to risks associated with leverage.

As of ~~December~~March 31, ~~2020~~2021 and September 30, 2020, we had cash and cash equivalents of ~~$20.2~~$33.9 million and $25.8 million, respectively, available for investing and general corporate purposes. We believe our liquidity and capital resources are sufficient to take advantage of market opportunities.

Our operating activities provided cash of ~~$35.0~~$46.8 million for the ~~three~~six months ended ~~December~~March 31, ~~2020,~~2021, and our financing activities used cash of ~~$40.8~~$38.8 million for the same period. Our operating activities provided cash primarily ~~for~~from our investment activities and our financing activities used cash primarily to pay down the Truist Credit ~~Facility.~~Facility and our SBA Debentures.

Our operating activities used cash of ~~$71.3~~$218.6 million for the ~~three~~six months ended ~~December~~March 31, ~~2019~~2020 and our financing activities provided cash of ~~$43.8~~$184.3 million for the same period. Our operating activities used cash primarily for our investment activities and our financing activities provided cash primarily from net borrowings under ~~our~~the Credit Facilities.

Below is a listing of PSLF’s individual investments as of ~~December~~March 31, ~~2020:~~2021:

Issuer Name	Maturity	Industry	Current Coupon			Basis Point Spread Above Index ⁽¹⁾		Par		Cost		Fair Value ⁽²⁾			Maturity	Industry	Current Coupon			Basis Point Spread Above Index ⁽¹⁾		Par		Cost		Fair Value ⁽²⁾
First Lien Secured Debt—545.9%
First Lien Secured Debt—573.8%
Altamira Technologies, LLC	07/24/2025	Aerospace and Defense		7.00	%	3M L+600			958,731	$	947,168	$	915,588		07/24/2025	Aerospace and Defense		8.00	%	3M L+700			946,231	$	935,343	$	910,747
American Insulated Glass, LLC	12/21/2023	Building Materials		6.50	%	3M L+550			14,737,640		14,548,387		14,516,575		12/21/2023	Building Materials		6.50	%	3M L+550			14,700,175		14,525,350		14,553,173
Apex Service Partners, LLC	07/31/2025	Personal, Food and Miscellaneous Services		6.25	%	1M L+525			8,441,913		8,351,071		8,441,913		07/31/2025	Personal, Food and Miscellaneous Services		6.25	%	1M L+525			6,569,222		6,513,036		6,569,222
Apex Service Partners, LLC⁽³⁾	07/31/2021	Personal, Food and Miscellaneous Services		—			—		1,542,556		—		—
Apex Service Partners, LLC Term Loan B															07/31/2025	Personal, Food and Miscellaneous Services		6.50	%	1M L+550			2,887,307		2,849,444		2,887,307
Apex Service Partners, LLC Term Loan B⁽³⁾															07/31/2021	Personal, Food and Miscellaneous Services		—			—		505,870		—		—
Bazaarvoice, Inc.	02/01/2024	Printing and Publishing		6.75	%	1M L+575			14,591,146		14,479,701		14,372,279		02/01/2024	Printing and Publishing		6.75	%	1M L+575			14,554,206		14,453,043		14,554,206
Bottom Line Systems, LLC	02/13/2023	Healthcare, Education and Childcare		6.25	%	1M L+550			14,961,929		14,868,747		14,806,325		02/13/2023	Healthcare, Education and Childcare		6.25	%	1M L+550			13,729,432		13,654,333		13,729,432
Datalot Inc.	01/24/2025	Insurance		6.25	%	3M L+525			7,099,014		6,980,774		7,099,014		01/24/2025	Insurance		6.25	%	3M L+525			7,081,132		6,969,481		7,081,132
DRS Holdings III, Inc.	11/03/2025	Consumer Products		6.75	%	1M L+575			13,530,557		13,421,192		13,544,088		11/03/2025	Consumer Products		6.75	%	1M L+575			13,496,389		13,392,116		13,631,353
ECL Entertainment, LLC															04/01/2028	Hotels, Motels, Inns and Gaming		8.25	%	1M L+750			4,615,385		4,569,231		4,615,385
ECM Industries, LLC	12/23/2025	Electronics		5.50	%	1M L+450			2,865,962		2,840,215		2,865,962		12/23/2025	Electronics		5.50	%	1M L+450			2,826,993		2,802,723		2,812,858
Global Holdings InterCo LLC															03/16/2026	Banking, Finance, Insurance & Real Estate		7.00	%	3M L+600			7,500,000		7,387,731		7,481,250
Holdco Sands Intermediate, LLC	12/19/2025	Aerospace and Defense		7.50	%	3M L+600			12,162,857		12,004,848		11,919,600		12/19/2025	Aerospace and Defense		7.50	%	3M L+600			12,132,143		11,981,532		11,950,161
HW Holdco, LLC	12/10/2024	Media		5.50	%	3M L+450			14,700,000		14,591,222		14,332,501		12/10/2024	Media		5.50	%	3M L+450			14,662,500		14,562,909		14,369,249
IMIA Holdings, Inc.															10/26/2025	Aerospace and Defense		7.00	%	3M L+600			5,545,103		5,518,102		5,545,103
Integrity Marketing Acquisition, LLC	08/27/2025	Insurance		6.50	%	3M L+550			7,927,894		7,850,822		7,650,418		08/27/2025	Insurance		6.75	%	3M L+575			7,907,956		7,835,094		7,789,337
Juniper Landscaping of Florida, LLC															12/22/2021	Personal, Food and Miscellaneous Services		6.50	%	3M L+550			10,000,000		10,000,000		10,000,000
K2 Pure Solutions NoCal, L.P.	12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700			14,700,000		14,557,560		14,442,750		12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700			14,662,500		14,531,185		14,350,188
Kentucky Downs, LLC	03/07/2025	Hotels, Motels, Inns and Gaming		10.00	%	1M L+900			10,205,877		10,037,924		10,078,304		03/07/2025	Hotels, Motels, Inns and Gaming		10.00	%	1M L+900			10,205,877		10,044,256		10,843,744
LAV Gear Holdings, Inc.	10/31/2024	Leisure, Amusement, Motion Pictures, Entertainment		8.50	%	3M L+750			2,041,180		2,025,149		1,891,358		10/31/2024	Leisure, Amusement, Motion Pictures, Entertainment		8.50	%	3M L+750			2,066,695		2,052,119		1,915,413
Lightspeed Buyer Inc.	02/03/2026	Healthcare, Education and Childcare		6.50	%	1M L+550			12,566,555		12,342,012		12,315,224		02/03/2026	Healthcare, Education and Childcare		6.50	%	1M L+550			12,534,901		12,318,777		12,346,877
Lombart Brothers, Inc.	04/13/2023	Healthcare, Education and Childcare		9.25	%	1M L+825			16,907,607		16,777,822		16,146,764		04/13/2023	Healthcare, Education and Childcare		9.25	%	1M L+825			16,862,753		16,747,224		16,188,243
MAG DS Corp.	04/01/2027	Aerospace and Defense		6.50	%	1M L+550			5,985,000		5,694,110		5,685,750		04/01/2027	Aerospace and Defense		6.50	%	1M L+550			5,970,000		5,690,193		5,850,600
MeritDirect, LLC	05/23/2024	Media		6.50	%	3M L+550			13,914,003		13,764,584		13,357,443		05/23/2024	Media		6.50	%	3M L+550			13,738,046		13,600,767		13,428,940
PlayPower, Inc.	05/08/2026	Consumer Products		5.74	%	3M L+550			4,015,020		3,981,658		3,829,326		05/08/2026	Consumer Products		5.70	%	3M L+550			4,004,520		3,972,682		3,949,458
Radius Aerospace, Inc.	03/31/2025	Aerospace and Defense		6.75	%	3M L+575			13,744,524		13,581,728		13,469,634		03/31/2025	Aerospace and Defense		6.75	%	3M L+575			13,709,619		13,557,021		13,435,427
Research Now Group, Inc. and Survey Sampling International LLC	12/20/2024	Business Services		6.50	%	3M L+550			14,809,160		14,696,977		14,538,893		12/20/2024	Business Services		6.50	%	3M L+550			14,770,992		14,665,291		14,597,433
Riverpoint Medical, LLC	06/20/2025	Healthcare, Education and Childcare		5.50	%	3M L+450			1,970,000		1,954,287		1,938,677		06/20/2025	Healthcare, Education and Childcare		5.50	%	3M L+450			1,965,000		1,950,151		1,953,014
Sales Benchmark Index LLC	01/03/2025	Business Services		7.75	%	3M L+600			7,867,378		7,736,084		7,729,699		01/03/2025	Business Services		7.75	%	3M L+600			7,847,561		7,723,814		7,317,850
Sargent & Greenleaf Inc.	12/20/2024	Electronics		7.00	%	1M L+550			5,420,826		5,355,677		5,353,065		12/20/2024	Electronics		7.00	%	1M L+550			5,379,340		5,318,630		5,379,340
Signature Systems Holding Company	05/03/2024	Chemicals, Plastics and Rubber		7.50	%	3M L+650			14,062,500		13,922,678		13,746,094		05/03/2024	Chemicals, Plastics and Rubber		7.50	%	3M L+650			13,875,000		13,748,286		13,701,562
Solutionreach, Inc.	01/17/2024	Communications		6.75	%	3M L+575			12,497,823		12,330,599		12,410,338		01/17/2024	Communications		6.75	%	3M L+575			12,464,523		12,309,758		12,464,523
STV Group Incorporated	12/11/2026	Transportation		5.40	%	1M L+525			12,320,154		12,211,130		12,320,154		12/11/2026	Transportation		5.36	%	1M L+525			12,162,305		12,058,444		11,615,001
TeleGuam Holdings, LLC	11/20/2025	Telecommunications		5.50	%	1M L+450			5,006,244		4,962,527		4,956,181		11/20/2025	Telecommunications		5.50	%	1M L+450			4,877,809		4,836,844		4,829,030
Teneo Holdings LLC	07/18/2025	Financial Services		6.25	%	1M L+525			7,461,111		7,188,146		7,370,981		07/18/2025	Financial Services		6.25	%	1M L+525			7,442,222		7,182,469		7,421,756
TPC Canada Parent, Inc. and TPC US Parent, LLC	11/24/2025	Food		6.25	%	3M L+525			5,635,844		5,579,485		5,466,768		11/24/2025	Food		6.25	%	3M L+525			5,621,612		5,565,396		5,452,963
TVC Enterprises, LLC	01/18/2024	Transportation		6.50	%	1M L+550			14,510,397		14,319,883		14,619,226		03/26/2026	Transportation		6.75	%	1M L+575			12,837,421		12,681,035		12,709,047
TWS Acquisition Corporation	06/16/2025	Education		7.25	%	1M L+625			10,046,691		9,880,493		10,046,691		06/16/2025	Education		7.25	%	1M L+625			9,647,753		9,497,821		9,647,753
UBEO, LLC	04/03/2024	Printing and Publishing		5.50	%	3M L+450			4,738,102		4,701,846		4,702,566		04/03/2024	Printing and Publishing		5.50	%	3M L+450			4,734,322		4,700,190		4,677,303
Vision Purchaser Corporation	06/10/2025	Media		7.75	%	1M L+675			14,321,880		14,088,756		13,605,786		06/10/2025	Media		7.75	%	1M L+675			14,321,451		14,102,097		13,748,593
Wheel Pros, Inc.															11/10/2027	Automotive		6.25	%	1M L+625			3,990,000		3,970,083		3,972,564
Whitney, Bradley & Brown, Inc.	10/18/2022	Aerospace and Defense		8.50	%	1M L+750			14,004,711		13,861,591		14,004,711		10/18/2022	Aerospace and Defense		8.50	%	1M L+750			13,815,260		13,691,368		13,953,413
Wildcat Buyerco, Inc.	02/27/2026	Electronics		6.25	%	3M L+525			7,481,156		7,406,933		7,406,342		02/27/2026	Electronics		6.25	%	3M L+525			7,462,312		7,392,228		7,425,003
Total First Lien Secured Debt											353,843,786		351,896,988												381,857,597		381,654,953
Cash and Cash Equivalents—24.5%
Cash and Cash Equivalents—18.9%
BlackRock Federal FD Institutional 30											14,192,122		14,192,122												9,916,869		9,916,869
US Bank Cash											1,582,100		1,582,100												2,623,145		2,623,145
Total Cash and Cash Equivalents											15,774,222		15,774,222												12,540,014		12,540,014
Total Investments and Cash Equivalents—570.3%										$	369,618,008	$	367,671,210
Liabilities in Excess of Other Assets—(470.3)%													(303,206,242	)
Total Investments and Cash Equivalents—592.7%																								$	394,397,611	$	394,194,967
Liabilities in Excess of Other Assets—(492.7)%																											(327,683,744	)
Members' Equity—100.0%												$	64,464,968													$	66,511,223

Issuer Name	Maturity	Industry	Current Coupon			Basis Point Spread Above Index ⁽¹⁾	Par		Cost		Fair Value ⁽²⁾
First Lien Secured Debt—701.6%
Advantage Sales & Marketing	07/23/2021	Grocery		4.25	%	1M L+325		8,627,315	$	8,418,699	$	8,456,926
Altamira Technologies, LLC	07/24/2025	Aerospace and Defense		7.00	%	3M L+600		971,231		958,950		937,238
American Insulated Glass, LLC	12/21/2023	Building Materials		6.50	%	3M L+550		14,775,105		14,571,097		14,479,603
Apex Service Partners, LLC	07/31/2025	Personal, Food and Miscellaneous Services		6.25	%	1M L+525		6,607,449		6,546,594		6,409,225
Bazaarvoice, Inc.	02/01/2024	Printing and Publishing		6.75	%	1M L+575		14,628,085		14,509,210		14,408,664
Bottom Line Systems, LLC	02/13/2023	Healthcare, Education and Childcare		6.25	%	1M L+550		15,000,000		14,895,515		14,683,499
Cano Health, LLC	06/02/2025	Healthcare, Education and Childcare		8.50	%	1M L+750		18,274,854		18,174,687		18,411,916
Datalot Inc.	01/24/2025	Insurance		6.25	%	3M L+525		7,116,895		6,991,975		7,125,435
DRS Holdings III, Inc.	11/03/2025	Consumer Products		6.75	%	1M L+575		13,564,726		13,448,313		13,316,490
ECM Industries, LLC	12/23/2025	Electronics		5.50	%	1M L+450		2,873,184		2,846,226		2,858,818
Holdco Sands Intermediate, LLC	12/19/2025	Aerospace and Defense		7.50	%	3M L+600		12,193,571		12,028,384		11,888,732
HW Holdco, LLC	12/10/2024	Media		5.50	%	3M L+450		14,737,500		14,619,623		14,295,375
Integrity Marketing Acquisition, LLC	08/27/2025	Insurance		6.50	%	3M L+550		447,833		444,755		443,354
K2 Pure Solutions NoCal, L.P.	12/20/2023	Chemicals, Plastics and Rubber		8.00	%	1M L+700		14,737,500		14,583,983		14,413,275
Kentucky Downs, LLC	03/07/2025	Hotels, Motels, Inns and Gaming		9.50	%	1M L+850		10,153,350		9,978,792		10,001,050
LAV Gear Holdings, Inc.	10/31/2024	Leisure, Amusement, Motion Pictures, Entertainment		8.50	%	3M L+750		2,015,428		1,998,623		1,856,411
Lightspeed Buyer Inc.	02/03/2026	Healthcare, Education and Childcare		6.25	%	1M L+525		12,598,209		12,365,207		12,440,731
Lombart Brothers, Inc.	04/13/2023	Healthcare, Education and Childcare		7.25	%	1M L+625		16,914,403		16,770,520		15,882,625
MAG DS Corp.	04/01/2027	Aerospace and Defense		6.50	%	1M L+550		6,000,000		5,700,000		5,707,500
MeritDirect, LLC	05/23/2024	Media		6.50	%	3M L+550		14,076,563		13,914,921		13,407,926
PlayPower, Inc.	05/08/2026	Consumer Products		5.72	%	3M L+550		4,025,520		3,990,631		3,824,244
Radius Aerospace, Inc.	03/31/2025	Aerospace and Defense		6.75	%	3M L+575		13,779,429		13,608,176		13,503,840
Research Now Group, Inc. and Survey Sampling International LLC	12/20/2024	Business Services		6.50	%	3M L+550		14,847,328		14,728,854		14,023,302
Riverpoint Medical, LLC	06/20/2025	Healthcare, Education and Childcare		5.50	%	3M L+450		1,975,000		1,958,417		1,905,678
Sales Benchmark Index LLC	01/03/2025	Business Services		7.75	%	3M L+600		7,887,195		7,748,712		7,697,903
Sargent & Greenleaf Inc.	12/20/2024	Electronics		7.00	%	1M L+550		5,448,483		5,378,893		5,350,411
Signature Systems Holding Company	05/03/2024	Chemicals, Plastics and Rubber		7.50	%	3M L+650		14,250,000		14,096,623		13,786,875
Solutionreach, Inc.	01/17/2024	Communications		6.75	%	3M L+575		12,531,123		12,351,398		12,393,282
STV Group Incorporated	12/11/2026	Transportation		5.40	%	1M L+525		12,351,980		12,238,771		12,228,460
TeleGuam Holdings, LLC	11/20/2025	Telecommunications		5.50	%	1M L+450		5,080,832		5,034,725		4,928,407
Teneo Holdings LLC	07/18/2025	Financial Services		6.25	%	1M L+525		1,980,000		1,874,970		1,905,750
TPC Canada Parent, Inc. and TPC US Parent, LLC	11/24/2025	Food		6.25	%	3M L+525		5,650,076		5,593,575		5,480,573
TVC Enterprises, LLC	01/18/2024	Transportation		6.50	%	1M L+550		14,547,897		14,343,185		14,438,788
TWS Acquisition Corporation	06/16/2025	Education		7.25	%	1M L+625		8,644,186		8,469,082		8,471,302
UBEO, LLC	04/03/2024	Printing and Publishing		5.50	%	3M L+450		4,738,102		4,700,032		4,453,816
Vision Purchaser Corporation	06/10/2025	Media		7.25	%	1M L+625		14,358,203		14,112,113		13,496,711
Whitney, Bradley & Brown, Inc.	10/18/2022	Aerospace and Defense		8.50	%	1M L+750		14,194,162		14,029,177		14,052,223
Total First Lien Secured Debt										358,023,408		353,366,358
Cash and Cash Equivalents—15.0%
BlackRock Federal FD Institutional 30										7,353,307		7,353,307
US Bank Cash										183,412		183,412
Total Cash and Cash Equivalents										7,536,719		7,536,719
Total Investments and Cash Equivalents—716.6%									$	365,560,127	$	360,903,077
Liabilities in Excess of Other Assets—(616.6)%												(310,538,386	)
Members' Equity—100.0%											$	50,364,691

Statements of Assets and Liabilities	Statements of Assets and Liabilities					Statements of Assets and Liabilities
		December 31, 2020		September 30, 2020			March 31, 2021		September 30, 2020
Assets
Investments at fair value (cost—$353,843,786 and $358,023,408, respectively)		$	351,896,988	$	353,366,358
Cash and cash equivalents (cost—$15,774,222 and $7,536,719, respectively)			15,774,222		7,536,719
Investments at fair value (cost—$381,857,597 and $358,023,408, respectively)							$	381,654,953	$	353,366,358
Cash and cash equivalents (cost—$12,540,014 and $7,536,719, respectively)								12,540,014		7,536,719
Interest receivable			813,092		877,008			912,621		877,008
Total assets			368,484,302		361,780,085			395,107,588		361,780,085
Liabilities
Distribution payable			1,800,000		1,393,716			2,400,000		1,393,716
Payable for investments purchased			7,131,972		5,700,000			4,569,231		5,700,000
Credit facility payable			185,500,000		213,500,000			212,000,000		213,500,000
Notes payable to members			106,040,612		87,500,000			106,040,612		87,500,000
Interest payable on credit facility			1,486,100		1,649,852			1,477,458		1,649,852
Interest payable on members notes			1,643,629		1,356,250			1,590,609		1,356,250
Accrued other expenses			417,021		315,576			518,455		315,576
Total liabilities			304,019,334		311,415,394			328,596,365		311,415,394
Commitments and contingencies ⁽¹⁾			—		—			—		—
Members' equity			64,464,968		50,364,691			66,511,223		50,364,691
Total liabilities and members' equity		$	368,484,302	$	361,780,085		$	395,107,588	$	361,780,085

Statements of Operations ⁽¹⁾	Statements of Operations ⁽¹⁾			Statements of Operations ⁽¹⁾
		Three Months Ended December 31,			Three Months Ended March 31,			Six Months Ended March 31,
		2020			2021			2021
Investment income:
Interest		$	6,561,996		$	6,695,820		$	13,257,816
Other income			436,957			289,777			726,734
Total investment income			6,998,953			6,985,597			13,984,550
Expenses:
Interest and expenses on credit facility			1,754,377			1,497,604			3,249,951
Interest expense on members notes			2,299,879			2,381,279			4,683,188
Administrative services expenses			292,965			292,965	��		585,930
Other general and administrative expenses ⁽²⁾			111,648			111,648			223,296
Total expenses			4,458,869			4,283,496			8,742,365
Net investment income			2,540,084			2,702,101			5,242,185
Realized and unrealized gain on investments:
Net realized gain on investments			464,337			—			464,337
Net change in unrealized appreciation on investments			2,710,252			1,744,154			4,454,406
Net realized and unrealized gain from investments			3,174,589			1,744,154			4,918,743
Net increase in members' equity resulting from operations		$	5,714,673		$	4,446,255		$	10,160,928

A summary of our significant contractual payment obligations at cost as of ~~December~~March 31, ~~2020,~~2021, including borrowings under our various debt facilities and other contractual obligations, is as follows:

	Payments due by period (in millions)										Payments due by period (in millions)
	Total		Less than 1 year		1-3 years		3-5 years		>5 years		Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Truist Credit Facility	$	355.5	$	—	$	29.9	$	325.6	$	—	$	375.5	$	—	$	31.6	$	343.9	$	—
SBA debentures		118.5		—		—		—		118.5		108.5		—		—		22.5		86.0
2024 Notes		86.3		—		—		86.3		—		86.3		—		—		86.3		—
Total debt outstanding ⁽¹⁾		560.3		—		29.9		411.9		118.5		570.3		—		31.6		452.7		86.0
Unfunded investments ⁽²⁾		44.8		2.7		16.4		19.7		6.0		47.4		10.3		12.5		21.5		3.1
Total contractual obligations	$	605.1	$	2.7	$	46.3	$	431.6	$	124.5	$	617.7	$	10.3	$	44.1	$	474.2	$	89.1

We have entered into certain contracts under which we have material future commitments. Under our Investment Management Agreement, which was reapproved by our board of directors (including a majority of our directors who are not interested persons of us or the Investment Adviser), in February 2021, PennantPark Investment Advisers serves as our investment adviser. PennantPark Investment, through the Investment Adviser, provides similar services to SBIC II under its investment management ~~agreements~~agreement with us. SBIC II’s investment management ~~agreements~~agreement does not affect the management or incentive fees that we pay to the Investment Adviser on a consolidated basis. Payments under our Investment Management Agreement in each reporting period are equal to (1) a management fee equal to a percentage of the value of our average adjusted gross assets and (2) an incentive fee based on our performance.

Under our Administration Agreement, which was most recently reapproved by our board of directors, including a majority of our directors who are not interested persons of us, in February 2021, the Administrator furnishes us with office facilities and administrative services necessary to conduct our day-to-day operations. PennantPark Investment, through the Administrator, provides similar services to SBIC II under its administration agreement, which is intended to have no effect on the consolidated administration fee. If requested to provide significant managerial assistance to our portfolio companies, we or the Administrator will be paid an additional amount based on the services provided.

Payment under our Administration Agreement is based upon our allocable portion of the Administrator’s overhead in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of our Chief Compliance Officer, Chief Financial Officer and their respective staffs.

If any of our contractual obligations discussed above are terminated, our costs under new agreements that we enter into may increase. In addition, we will likely incur significant time and expense in locating alternative parties to provide the services we expect to receive under our Investment Management Agreement and our Administration Agreement. Any new investment management agreement would also be subject to approval by our stockholders.

We currently engage in no off-balance-sheet arrangements other than our funding requirements for the unfunded investments described above.

In order to be treated as a U.S. RIC for federal income tax purposes and to not be subject to corporate-level tax on undistributed income or gains, we are required, under Subchapter M of the Code, to annually distribute dividends for U.S. federal income tax purposes to our stockholders out of the assets legally available for distribution of an amount generally at least equal to 90% of our investment company taxable income, determined without regard to any deduction for dividends paid.

Although not required for us to maintain our RIC tax status, in order to preclude the imposition of a 4% nondeductible ~~U.S.~~ federal excise tax imposed on RICs, we must distribute dividends for U.S. federal income tax purposes to our stockholders in respect of each calendar year of an amount at least equal to the Excise Tax Avoidance Requirement. In addition, although we may distribute realized net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually, out of the assets legally available for such distributions in the manner described above, we have retained and may continue to retain such net capital gains or investment company taxable income, contingent on maintaining our ability to be subject to tax as a RIC, in order to provide us with additional liquidity.

During the three and six months ended ~~December~~March 31, ~~2020,~~2021, we declared distributions of $0.12 and $0.24 per share, for total distributions of $8.0 ~~million.~~million and $16.1 million, respectively. For the same ~~period~~periods in the prior year, we declared distributions of $0.18 and $0.36 per share, ~~respectively,~~ for total distributions of $12.1 ~~million.~~million and $24.1 million, respectively. We monitor available net investment income to determine if a return of capital for tax purposes may occur for the fiscal year. To the extent our taxable earnings fall below the total amount of our distributions for any given fiscal year, stockholders will be notified of the portion of those distributions deemed to be a tax return of capital. Tax characteristics of all distributions will be reported to stockholders subject to information reporting on Form 1099-DIV after the end of each calendar year and in our periodic reports filed with the SEC.

We intend to continue to make quarterly distributions to our stockholders. Our quarterly distributions, if any, are determined by our board of directors.

We maintain an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a distribution, then stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock, unless stockholders specifically “opt out” of the dividend reinvestment plan so as to receive cash distributions.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage ratio for borrowings applicable to us as a BDC under the 1940 Act and/or due to provisions in future credit facilities. If we do not distribute at least a certain percentage of our income annually, we could suffer adverse tax consequences, including possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions at a particular level.

We are subject to financial market risks, including changes in interest rates. As of ~~December~~March 31, ~~2020,~~2021, our debt portfolio consisted of 92% variable-rate investments. The variable-rate loans are usually based on a ~~LIBOR rate (or an alternative risk-free~~ floating interest rate ~~index)~~index such as LIBOR and typically have durations of three months after which they reset to current market interest rates. Variable-rate investments subject to a floor generally reset by reference to the current market index after one to nine months only if the index exceeds the floor. In regards to variable-rate instruments with a floor, we do not benefit from increases in interest rates until such rates exceed the floor and thereafter benefit from market rates above any such floor. In contrast, our cost of funds, to the extent it is not fixed, will fluctuate with changes in interest rates since it has no floor.

Assuming that the most recent Consolidated Statements of Assets and Liabilities was to remain constant, and no actions were taken to alter the ~~existing~~ interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates:

Change In Interest Rates	Change In Interest Income, Net Of Interest Expense (in thousands)			Change In Interest Income, Net of Interest Expense Per Share
Change in Interest Rates							Change in Interest Income, Net of Interest Expense (in thousands)			Change in Interest Income, Net of Interest Expense Per Share
Down 1%	$	580		$	0.01		$	1,160		$	0.02
Up 1%		(2,459	)		(0.04	)		(2,814	)		(0.04	)
Up 2%		879			0.01			457			0.01
Up 3%		4,217			0.06			3,729			0.06
Up 4%	$	7,555		$	0.11		$	7,000		$	0.10

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

Because we borrow money to make investments, our net investment income is dependent upon the difference between the rate at which we borrow funds and the rate at which we invest these funds as well as our level of leverage. 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 or net assets.

We may hedge against interest rate and foreign currency fluctuations by using standard hedging instruments such as futures, options and forward contracts or our Truist Credit Facility subject to the requirements of the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates and foreign currencies, they may also limit our ability to participate in benefits of lower interest rates or higher exchange rates with respect to our portfolio of investments with fixed interest rates or investments denominated in foreign currencies. During the periods covered by this Report, we did not engage in interest rate hedging activities or foreign currency derivatives hedging activities.

As of the period covered by this Report, we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer

and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic filings with the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

There have been no changes in our internal control over financial reporting that occurred during the quarter ended ~~December~~March 31, ~~2020~~2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

None of us, our Investment Adviser or our Administrator, is currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us, or against our Investment Adviser or Administrator. From time to time, we, our Investment Adviser or Administrator may be a party to certain legal proceedings, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations.

In addition to the other information set forth in this Report, you should consider carefully the factors discussed below, as well as in Part I “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 filed on November 19, 2020 and amended on March 26, 2021, which could materially affect our business, financial condition and/or operating results. The risks described below, as well as in our Annual Report on Form 10-K, are not the only risks facing PennantPark Investment. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

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 Section 61(a)(2) of the 1940 Act, equals at least 200% after such incurrence or issuance. In March 2018, the Consolidated Appropriations Act of 2018 (which includes the SBCAA) was enacted which amended the 1940 Act to decrease this percentage from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity) for a BDC that has received either stockholder approval or approval of a “required majority” (as defined in Section 57(o) of the 1940 Act) of its board of directors of the application of such lower asset coverage ratio to the BDC. On February 5, 2019, our stockholders approved such reduction, as approved by our board of directors on November 13, 2018. As of February 5, 2019, we are able to incur additional indebtedness so long as we comply with the applicable disclosure requirements, which may increase the risk of investing in us. Under the 200% minimum asset coverage ratio, we were permitted to borrow up to one dollar for investment purposes for every one dollar of investor equity and, under the 150% minimum asset coverage ratio, we are permitted to borrow up to two dollars for investment purposes for every one dollar of investor equity. In other words, Section 61(a)(2) of the 1940 Act permits BDCs to potentially increase their debt-to-equity ratio from a maximum of 1-to-1 to a maximum of 2-to-1. In addition, since our base management fee is determined and payable based upon our average adjusted gross assets, which includes any borrowings for investment purposes, our base management fee expense may increase if we incur additional leverage. Effective February 5, 2019, base management fees were reduced from 1.50% to 1.00% on gross assets that exceed 200% of the Company’s total net assets as of the immediately preceding quarter-end.

Because we intend to distribute substantially all of our income to our stockholders to maintain our ability to be subject to tax as a RIC, we may need to raise additional capital to finance our growth. If funds are not available to us, we may need to curtail new investments, and our common stock value could decline.

In connection with satisfying the requirements to be subject to tax as a RIC for federal income tax purposes, we intend to distribute to our stockholders substantially all of our investment company taxable income and net capital gains each taxable year. However, we may retain all or a portion of our net capital gains and incur applicable income taxes with respect thereto and elect to treat such retained net capital gains as deemed dividend distributions to our stockholders.

As noted above, on November 13, 2018 and February 5, 2019, our board of directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act), and our stockholders, respectively, approved a reduction of our asset coverage ratio from 200% to 150%. As a result, as of February 6, 2019, the asset coverage requirement applicable to us for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity). If we incur additional indebtedness under this provision, the risk of investing in us will increase. If the value of our assets declines, we may be unable to satisfy this asset coverage test. If that happens, we may be required to sell a portion of our investments or sell additional common stock and, depending on the nature of our leverage, to repay a portion of our indebtedness at a time when such sales and repayments may be disadvantageous. In addition, the issuance of additional securities could dilute the percentage ownership of our current stockholders in us.

We are partially dependent on our SBIC Fund for cash distributions to enable us to meet the distribution requirements in order to permit us to be subject to tax as a RIC. In this regard, our SBIC Fund is limited by the SBA regulations governing SBICs from making certain distributions to us that may be necessary to satisfy the requirements to be subject to tax as a RIC. In such a case, we would need to request a waiver of the SBA’s restrictions for our SBIC Fund to make certain distributions to enable us to be subject to tax as a RIC. We cannot assure you that the SBA will grant such waiver, and if our SBIC Fund is unable to obtain a waiver, compliance with the SBA regulations may cause us to incur a corporate-level income tax.

If we incur additional debt, it could increase the risk of investing in our shares.

We have indebtedness outstanding pursuant to ~~our~~the Truist Credit Facility, 2024 Notes and SBA debentures and expect in the future to borrow additional amounts under ~~our~~the Truist Credit Facility or other debt securities, subject to market availability, and, may increase the size of ~~our~~the Truist Credit Facility. We cannot assure you that our leverage will remain at current levels. The amount of leverage that we employ will depend upon our assessment of the market and other factors at the time of any proposed borrowing. Lenders have fixed dollar claims on our assets that are superior to the claims of our common stockholders or preferred stockholders, if any, and we have granted a security interest in our assets, excluding those of SBIC II, in connection with borrowings under ~~our~~the Truist Credit Facility. In the case of a liquidation event, those lenders would receive proceeds before our stockholders. Additionally, the SBA, as a lender and an administrative agent, has a superior claim over the assets of SBIC II in relation to our other creditors. Any future debt issuance will increase our leverage and may be subordinate to ~~our~~the Truist Credit Facility and SBA debentures. In addition, borrowings or debt issuances and SBA debentures, also known as leverage, magnify the potential for loss or gain on amounts invested and, therefore, increase the risks associated with investing in our securities. Leverage is generally considered a speculative investment technique. If the value of our assets decreases, then leveraging would cause the net asset value attributable to our common stock to decline more than it otherwise would have had we not utilized leverage. Similarly, any decrease in our revenue would cause our net income to decline more than it would have had we not borrowed funds and could negatively affect our ability to make distributions on our common or preferred stock. Our ability to service any debt that we incur depends largely on our financial performance and is subject to prevailing economic conditions and competitive pressures.

We did not engage in any sales of unregistered securities during the ~~three~~six months ended ~~December~~March 31, ~~2020.~~2021.

Unless specifically indicated otherwise, the following exhibits are incorporated by reference to exhibits previously filed with the SEC:

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.


MARYLAND		20-8250744
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

590 Madison Avenue, 15^th Floor New York, N.Y.		10022
(Address of principal executive offices)		(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share	PNNT	The Nasdaq Stock Market LLC
5.50% Notes due 2024	PNNTG	The Nasdaq Stock Market LLC


PART I. CONSOLIDATED FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Consolidated Statements of Assets and Liabilities as of ~~December~~March 31, ~~2020~~2021 (unaudited) and September 30, 2020		4

Consolidated Statements of Operations for the three and six months ended ~~December~~March 31, 2021 and 2020 ~~and 2019~~ (unaudited)		5

Consolidated Statements of Changes in Net Assets for the three and six months ended ~~December~~March 31, 2021 and 2020 ~~and 2019~~ (unaudited)		6

Consolidated Statements of Cash Flows for the ~~three~~six months ended ~~December~~March 31, 2021 and 2020 ~~and 2019~~ (unaudited)		7

Consolidated Schedules of Investments as of ~~December~~March 31, ~~2020~~2021 (unaudited) and September 30, 2020		8

Notes to Consolidated Financial Statements (unaudited)		16

Report of Independent Registered Public Accounting Firm		30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		31

Item 3. Quantitative and Qualitative Disclosures About Market Risk		42

Item 4. Controls and Procedures	42	43

PART II. OTHER INFORMATION

Item 1. Legal Proceedings		44

Item 1A. Risk Factors		44

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		44

Item 3. Defaults Upon Senior Securities		45

Item 4. Mine Safety Disclosures		45

Item 5. Other Information		45

Item 6. Exhibits		46

SIGNATURES		47

3.1	Articles of Incorporation (Incorporated by reference to Exhibit 99(a) to the Registrant’s Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2/A (File No. 333-140092), filed on April 5, 2007).

~~3.2~~3.2*	Second Amended and Restated Bylaws of the Registrant (Incorporated by reference to Exhibit ~~3.1~~3.2 to the ~~Registrant’s Current~~Registrant's Quarterly Report on Form ~~8-K~~10-Q (File No. 814-00736), filed on ~~December 2, 2015)~~May 11, 2020).

4.1	Form of Share Certificate (Incorporated by reference to Exhibit 99(d)(1) to the Registrant’s Registration Statement on Form N-2 (File No. 333-150033), filed on April 2, 2008).

~~10.1~~4.2	~~First Amendment to the Amended and Restated Limited Liability Company Agreement of PennantPark Senior Loan Fund, LLC,~~Fourth Supplemental Indenture, dated as of ~~October 31, 2020,~~April 21, 2021, by and among PennantPark Investment Corporation, Pantheon Private Debt Program SCSp SICAV – RAIF In Respect Of Its Compartment Pantheon Senior Debt Secondaries II (USD), Pantheon Private Debt Program SCSp SICAV-RAIF In Respect Of Its Compartment Pantheon Credit Opportunities II (USD), Pantheon Private Debt Program SCSp SICAV-RAIF In Respect Of Its Compartment Tubera Credit 2020between the Company and ~~Solutio Premium Private Debt I SCSp.~~American Stock Transfer & Trust Company, LLC, as trustee (Incorporated by reference to Exhibit ~~10.12~~4.1 to the Registrant’s ~~Annual~~Current Report on Form ~~10-K~~8-K (File No. 814-00736), filed on ~~November 19, 2020)~~April 22, 2021.

4.3	Form of 4.50% Notes due 2026 (Incorporated by reference to Exhibit 4.2 hereto).

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

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

32.1*	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

99.1	Privacy Policy of the Registrant (Incorporated by reference to Exhibit 99.1 to the Registrant’s Annual Report on Form 10-K (File No. 814-00736), filed on November 16, 2011).


	PENNANTPARK INVESTMENT CORPORATION

Date: ~~February 9,~~May 5, 2021	By:	/s/ Arthur H. Penn
		Arthur H. Penn
		Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer)

Date: ~~February 9,~~May 5, 2021	By:	/s/ Aviv Efrat
		Aviv Efrat
		Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company