SLR Investment (SLRC) 10-Q 2023 Q3 Quarterly report

0001418076 Equipment Financing 26.6% |Capital City Jet Center Inc. |Airlines |10.00% |4/4/2018 |10/4/2023-6/22/2026 2022-12-31 0001418076 slrc:TwoThousandAndFortyTwoUnsecuredNotesMember 2015-12-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarter Ended September 30, 2023

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number:

814-00754

SLR INVESTMENT CORP.

(Exact name of registrant as specified in its charter)

Maryland	26-1381340
(State of Incorporation)	(I.R.S. Employer Identification No.)
500 Park Avenue New York, N.Y.	10022
(Address of principal executive offices)	(Zip Code)

(212) 993-1670

(Registrant’s telephone number, including area code)

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

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	SLRC	The NASDAQ Global Select Market

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 definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule

12b-2

of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller Reporting company	☐
Emerging growth company	☐

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

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, $0.01 par value, outstanding as of November 3, 2023 was 54,554,634.

SLR INVESTMENT CORP.

FORM

10-Q

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

TABLE

OF

CONTENTS

		PAGE
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements Consolidated Statements of Assets and Liabilities as of September 30, 2023 (unaudited) and December 31, 2022		3
	Consolidated Statements of Operations for the three and nine months ended September 30, 2023 (unaudited) and the three and nine months ended September 30, 2022 (unaudited)		4
	Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2023 (unaudited) and the three and nine months ended September 30, 2022 (unaudited)		5
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 (unaudited) and the nine months ended September 30, 2022 (unaudited)		6
	Consolidated Schedule of Investments as of September 30, 2023 (unaudited)		7
	Consolidated Schedule of Investments as of December 31, 2022		12
	Notes to Consolidated Financial Statements (unaudited)		17
	Report of Independent Registered Public Accounting Firm		38
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		58
Item 4.	Controls and Procedures		58
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		59
Item 1A.	Risk Factors		59
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities		61
Item 3.	Defaults Upon Senior Securities		61
Item 4.	Mine Safety Disclosures		61
Item 5.	Other Information		61
Item 6.	Exhibits		61
	Signatures		63

PART I. FINANCIAL INFORMATION

In this Quarterly Report, “Company”, “we”, “us”, and “our” refer to SLR Investment Corp. unless the context states otherwise.

Item 1. Financial Statements

SLR INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except share amounts)

	September 30, 2023 (unaudited)			December 31, 2022
Assets
Investments at fair value:
Companies less than 5% owned (cost: $1,305,572 and $1,312,701, respectively)	$	1,320,729		$	1,289,082
Companies 5% to 25% owned (cost: $59,983 and $0, respectively)		43,405			—
Companies more than 25% owned (cost: $839,062 and $821,886, respectively)		806,922			797,594
Cash		10,266			10,743
Cash equivalents (cost: $332,557 and $417,590, respectively)		332,557			417,590
Dividends receivable		10,993			11,192
Interest receivable		11,828			9,706
Receivable for investments sold		1,598			1,124
Prepaid expenses and other assets		788			664
Total assets	$	2,539,086		$	2,537,695
Liabilities
Debt ($1,197,750 and $1,093,200 face amounts, respectively, reported net of unamortized debt issuance costs of $5,996 and $7,202, respectively. See notes 6 and 7)	$	1,191,754		$	1,085,998
Payable for investments and cash equivalents purchased		332,557			417,611
Distributions payable		—			7,481
Management fee payable (see note 3)		8,051			7,964
Performance-based incentive fee payable (see note 3)		5,621			5,422
Interest payable (see note 7)		7,416			7,943
Administrative services payable (see note 3)		3,678			1,488
Other liabilities and accrued expenses		4,624			4,057
Total liabilities	$	1,553,701		$	1,537,964
Commitments and contingencies (see note 14)
Net Assets
Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized, respectively, and 54,554,634 and 54,555,380 shares issued and outstanding, respectively	$	546		$	546
Paid-in capital in excess of par		1,162,559			1,162,569
Accumulated distributable net loss		(177,720	)		(163,384	)
Total net assets	$	985,385		$	999,731
Net Asset Value Per Share	$	18.06		$	18.33

See notes to consolidated financial statements.

3

SLR INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except share amounts)

	Three months ended						Nine months ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
INVESTMENT INCOME:
Interest:
Companies less than 5% owned	$	43,696		$	32,933		$	122,301		$	82,450
Companies 5% to 25% owned		816			—			1,081			—
Companies more than 25% owned		2,879			2,431			8,404			6,914
Dividends:
Companies more than 25% owned		11,429			11,969			33,782			32,767
Other income:
Companies less than 5% owned		735			234			3,814			1,222
Companies more than 25% owned		86			—			143			—
Total investment income		59,641			47,567			169,525			123,353
EXPENSES:
Management fees (see note 3)	$	8,051		$	7,890		$	23,635		$	22,019
Performance-based incentive fees (see note 3)		5,796			4,965			16,943			9,699
Interest and other credit facility expenses (see note 7)		19,874			12,784			53,002			31,464
Administrative services expense (see note 3)		1,575			1,132			4,563			3,684
Other general and administrative expenses		1,161			935			3,610			4,212
Total expenses		36,457			27,706			101,753			71,078
Performance-based incentive fees waived (see note 3)		(175	)		(194	)		(410	)		(1,552	)
Net expenses		36,282			27,512			101,343			69,526
Net investment income	$	23,359		$	20,055		$	68,182		$	53,827
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:
Net realized loss on investments and cash equivalents (companies less than 5% owned)	$	(30,951	)	$	(37,326	)	$	(29,766	)	$	(37,401	)
Net change in unrealized gain (loss) on investments and cash equivalents:
Companies less than 5% owned		33,439			28,783			24,349			3,521
Companies 5% to 25% owned		1,065			—			(2,151	)		—
Companies more than 25% owned		35			2,016			(7,848	)		(20,602	)
Net change in unrealized gain (loss) on investments and cash equivalents		34,539			30,799			14,350			(17,081	)
Net realized and unrealized gain (loss) on investments and cash equivalents		3,588			(6,527	)		(15,416	)		(54,482	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	26,947		$	13,528		$	52,766		$	(655	)
EARNINGS (LOSS) PER SHARE (see note 5)	$	0.49		$	0.25		$	0.97		$	(0.01	)

See notes to consolidated financial statements.

4

SLR INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)

(in thousands, except share amounts)

	Three months ended						Nine months ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Increase (decrease) in net assets resulting from operations:
Net investment income	$	23,359		$	20,055		$	68,182		$	53,827
Net realized loss		(30,951	)		(37,326	)		(29,766	)		(37,401	)
Net change in unrealized gain (loss)		34,539			30,799			14,350			(17,081	)
Net increase (decrease) in net assets resulting from operations		26,947			13,528			52,766			(655	)
Distributions to stockholders:
From net investment income		(22,367	)		(20,055	)		(67,102	)		(53,827	)
From return of capital		—			(2,401	)		—			(8,413	)
Net distributions to stockholders		(22,367	)		(22,456	)		(67,102	)		(62,240	)
Capital transactions (see note 12) :
Issuance of common stock		—			—			—			226,839
Repurchases of common stock		—			—			(10	)		—
Net capital transactions		—			—			(10	)		226,839
Total increase (decrease) in net assets		4,580			(8,928	)		(14,346	)		163,944
Net assets at beginning of period		980,805			1,015,153			999,731			842,281
Net assets at end of period	$	985,385		$	1,006,225		$	985,385		$	1,006,225
Capital stock activity (see note 12) :
Issuance of common stock		—			—			—			12,511,825
Repurchases of common stock		—			—			(746	)		—
Net capital stock activity		—			—			(746	)		12,511,825

See notes to consolidated financial statements.

5

SLR INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in thousands)

	Nine months ended
	September 30, 2023			September 30, 2022
Cash Flows from Operating Activities:
Net increase (decrease) in net assets resulting from operations	$	52,766		$	(655	)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net realized loss on investments and cash equivalents		29,766			37,401
Net change in unrealized (gain) loss on investments		(14,350	)		17,081
Deferred financing costs/market discount		1,561			1,631
(Increase) decrease in operating assets:
Purchase of investments		(556,348	)		(406,302	)
Proceeds from disposition of investments		474,599			259,784
Net accretion of discount on investments		(9,315	)		(7,760	)
Capitalization of payment-in-kind income		(8,936	)		(1,753	)
Collections of payment-in-kind income		204			1,112
Receivable for investments sold		(474	)		102
Interest receivable		(2,122	)		(2,935	)
Dividends receivable		199			(2,514	)
Prepaid expenses and other assets		(124	)		(319	)
Cash acquired in the Mergers		—			2,313
Increase (decrease) in operating liabilities:
Payable for investments and cash equivalents purchased		(85,054	)		(51,089	)
Management fee payable		87			455
Performance-based incentive fee payable		199			2,907
Administrative services expense payable		2,190			(1,396	)
Interest payable		(527	)		2,591
Other liabilities and accrued expenses		567			600
Net Cash Used in Operating Activities		(115,112	)		(148,746	)
Cash Flows from Financing Activities:
Cash distributions paid		(74,583	)		(72,081	)
Proceeds from unsecured borrowings		—			134,914
Repayment of unsecured borrowings		(75,000	)		(150,000	)
Proceeds from secured borrowings		667,695			743,892
Repayment of secured borrowings		(488,500	)		(554,000	)
Repurchase of common stock		(10	)		—
Net Cash Provided by Financing Activities		29,602			102,725
NET DECREASE IN CASH AND CASH EQUIVALENTS		(85,510	)		(46,021	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		428,333			322,935
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	342,823		$	276,914
Supplemental disclosure of cash flow information:
Cash paid for interest	$	53,529		$	28,873
Issuance of shares in connection with the Mergers (1)		—			226,839

(1) On April 1, 2022, in connection with the Mergers (as defined in Note 1 “Organization”), the Company acquired net assets of $244,691 for the total stock consideration of $226,839.

See notes to consolidated financial statements.

6

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)

September 30, 2023

(in thousands, except share/unit amounts)

Description	Industry		Spread Above Index (7)			Floor			Interest Rate (1)			Acquisition Date		Maturity Date		Par Amount		Cost		Fair Value
Senior Secured Loans — 132.0%
First Lien Bank Debt/Senior Secured Loans
Accession Risk Management Group, Inc. (f/k/a RSC Acquisition, Inc.) (16)		Insurance		S+550			0.75	%		11.02	%		4/1/2022		11/1/2026	$	20,221	$	20,071	$	20,221
Aegis Toxicology Sciences Corporation(16)		Health Care Providers & Services		S+550			1.00	%		11.13	%		5/7/2018		5/9/2025		13,420		13,218		13,420
Alkeme Intermediary Holdings, LLC		Insurance		S+650			1.00	%		11.92	%		9/20/2023		10/28/2026		8,524		8,270		8,268
All States Ag Parts, LLC(16)		Trading Companies & Distributors		S+600			1.00	%		11.60	%		4/1/2022		9/1/2026		2,177		2,148		2,177
Apex Services Partners, LLC(16)		Diversified Consumer Services		S+525			1.00	%		10.67	%		8/31/2022		7/31/2025		13,916		13,641		13,916
Atria Wealth Solutions, Inc.(16)		Diversified Financial Services		S+650			1.00	%		12.15	%		9/14/2018		2/29/2024		16,288		16,170		16,288
Basic Fun, Inc.(16)		Specialty Retail		S+650			1.00	%		12.17	%		10/30/2020		7/2/2024		2,150		2,149		2,150
BayMark Health Services, Inc.(16)		Health Care Providers & Services		S+500			1.00	%		10.65	%		4/1/2022		6/11/2027		8,286		8,021		8,286
Bayside Opco, LLC(27)		Healthcare Providers & Services		S+700	(15)		1.00	%		12.54	%		5/31/2023		5/31/2026		402		402		402
Bayside Opco, LLC(27)		Healthcare Providers & Services		S+725	(11)		1.00	%		12.79	%		5/31/2023		5/31/2026		18,807		18,807		18,807
Bayside Parent, LLC(27)		Healthcare Providers & Services		S+1000	(11)		1.00	%		15.54	%		5/31/2023		5/31/2026		4,959		4,959		4,959
BDG Media, Inc.		Media		P+525			5.50	%		13.75	%		7/18/2022		7/31/2025		5,354		5,354		5,354
CC SAG Holdings Corp. (Spectrum Automotive)(16)		Diversified Consumer Services		S+575			0.75	%		11.18	%		6/29/2021		6/29/2028		36,588		36,020		36,588
Composite Technology Acquisition Corp.(16)		Building Products		S+450			1.00	%		10.04	%		4/1/2022		2/1/2025		11,028		10,765		11,028
CVAUSA Management, LLC		Health Care Providers & Services		S+650			1.00	%		11.59	%		5/22/2023		5/22/2029		18,855		18,308		18,289
Enhanced Permanent Capital, LLC(3)		Capital Markets		S+700			1.00	%		12.26	%		12/29/2020		12/29/2025		42,521		41,790		42,521
ENS Holdings III Corp. & ES Opco USA LLC (Bluefin)(16)		Trading Companies & Distributors		S+475			1.00	%		10.24	%		4/1/2022		12/31/2025		4,630		4,507		4,630
Enverus Holdings, Inc. (fka Drilling Info Holdings)(16)		IT Services		S+450			—			9.92	%		4/1/2022		7/30/2025		11,277		10,950		11,277
Erie Construction Mid-west, LLC(16)		Building Products		S+475			1.00	%		10.34	%		4/1/2022		7/30/2027		8,572		8,296		8,572
Fertility (ITC) Investment Holdco, LLC		Health Care Providers & Services		S+650			1.00	%		11.63	%		1/4/2023		1/3/2029		22,653		22,034		22,653
Foundation Consumer Brands, LLC(16)		Personal Products		S+625			1.00	%		11.77	%		2/12/2021		2/12/2027		27,560		26,963		27,560
GSM Acquisition Corp.(16)		Leisure Equipment & Products		S+500			1.00	%		10.65	%		4/1/2022		11/16/2026		10,939		10,578		10,939
Higginbotham Insurance Agency, Inc.(16)		Insurance		S+550			1.00	%		10.92	%		4/1/2022		11/15/2028		28,856		28,856		28,856
High Street Buyer, Inc.(16)		Insurance		S+600			0.75	%		11.54	%		4/1/2022		4/16/2028		3,191		3,034		3,191
Human Interest Inc.		Internet Software & Services		S+785			1.00	%		13.18	%		6/30/2022		7/1/2027		20,104		19,903		20,104
iCIMS, Inc.		Software		S+725			0.75	%		12.14	% (26)		8/18/2022		8/18/2028		30,762		30,327		30,762
Kaseya, Inc.(16)		Software		S+625			0.75	%		11.58	% (29)		6/22/2022		6/23/2029		24,365		24,050		24,365
Kid Distro Holdings, LLC (Distro Kid)(16)		Software		S+550			1.00	%		11.04	%		9/24/2021		10/1/2027		20,259		19,969		20,259
Kingsbridge Holdings, LLC(2)		Multi-Sector Holdings		S+700			1.00	%		12.40	%		12/21/2018		12/21/2024		80,000		79,872		80,000
KORE Wireless Group, Inc.(16)		Wireless Telecommunication Services		S+550			—			10.99	%		12/21/2018		12/21/2024		23,404		23,108		23,404
Logix Holding Company, LLC(16)		Communications Equipment		L+575			1.00	%		11.48	%		9/14/2018		12/22/2024		14,009		13,516		13,729
Luxury Asset Capital, LLC(16)		Thrifts & Mortgage Finance		S+675			1.00	%		12.19	%		7/15/2022		7/15/2027		30,500		30,005		30,500
Maurices, Incorporated(16)		Specialty Retail		S+675			1.00	%		9.94	%		8/27/2021		6/1/2024		7,395		7,346		7,395
Maxor Acquisition, Inc.		Health Care Providers & Services		S+675			1.00	%		12.48	%		3/1/2023		3/1/2029		23,783		23,118		23,783
NSPC Intermediate Corp. (National Spine)		Health Care Providers & Services		S+850			1.00	%		13.20	%		4/1/2022		2/13/2026		2,216		2,136		2,216
Oldco AI, LLC(f/k/a Amerimark)(14)(27)		Internet & Catalog Retail		P+475			1.00	%		13.25	%		6/16/2023		10/31/2023		321		321		321
Oldco AI, LLC (f/k/a Amerimark)(14)(27)**		Internet & Catalog Retail		S+800			1.00	%		—			7/28/2021		10/15/2026		4,855		4,204		—
ONS MSO, LLC		Health Care Providers & Services		S+625			1.00	%		11.62	%		2/10/2023		7/8/2025		17,192		16,798		17,192
Orthopedic Care Partners Management, LLC		Health Care Providers & Services		S+650			1.00	%		11.96	%		8/17/2022		5/16/2024		5,502		5,473		5,420
Pediatric Home Respiratory Services, LLC		Health Care Providers & Services		S+625			1.00	%		11.67	%		8/19/2022		12/4/2024		3,118		3,082		3,118
Peter C. Foy & Associates Insurance Services, LLC		Insurance		S+600			0.75	%		11.43	%		4/1/2022		11/1/2028		16,920		16,668		16,581
PhyNet Dermatology LLC		Health Care Providers & Services		S+625			1.00	%		11.45	%		9/5/2018		8/16/2024		8,374		8,361		8,374
Pinnacle Treatment Centers, Inc.(16)		Health Care Providers & Services		S+675			1.00	%		12.10	%		1/22/2020		1/2/2026		25,243		24,903		25,243
Plastics Management, LLC(16)		Health Care Providers & Services		S+500			1.00	%		10.44	%		4/1/2022		8/18/2027		17,184		16,493		17,184
RQM+ Corp.(16)		Life Sciences Tools & Services		S+575			1.00	%		11.40	%		8/20/2021		8/12/2026		23,696		23,361		23,696
RxSense Holdings LLC(16)		Diversified Consumer Services		S+500			1.00	%		10.47	%		4/1/2022		3/13/2026		8,677		8,369		8,677
SCP Eye Care, LLC		Health Care Providers & Services		S+575			1.00	%		11.17	%		10/6/2022		10/5/2029		9,562		9,281		9,562
SHO Holding I Corporation (Shoes for Crews)(16)		Footwear		S+523			1.00	%		10.86	%		4/1/2022		4/27/2024		5,659		5,505		5,376
Southern Orthodontic Partners Management, LLC(16)		Health Care Providers & Services		S+625			1.00	%		11.89	%		6/3/2022		1/27/2026		11,505		11,319		11,274
Stryten Resources LLC		Auto Parts & Equipment		S+800			1.00	%		13.43	%		8/11/2021		10/12/2026		10,725		10,581		10,586
SunMed Group Holdings, LLC(16)		Health Care Equipment & Supplies		S+550			0.75	%		10.99	%		6/16/2021		6/16/2028		15,020		14,700		15,020
TAUC Management, LLC(16)		Health Care Providers & Services		L+525			1.00	%		10.59	%		4/1/2022		2/12/2027		6,893		6,630		6,411
The Townsend Company, LLC		Commercial Services & Supplies		S+625			1.00	%		11.57	%		8/17/2023		8/15/2029		10,073		9,825		9,821
Tilley Distribution, Inc.(16)		Trading Companies & Distributors		S+600			1.00	%		11.54	%		4/1/2022		12/31/2026		3,848		3,692		3,848
Ultimate Baked Goods Midco LLC (Rise Baking)(16)		Packaged Foods & Meats		S+625			1.00	%		11.67	%		8/12/2021		8/13/2027		14,858		14,397		14,858
United Digestive MSO Parent, LLC		Health Care Providers & Services		S+675			1.00	%		12.29	%		3/30/2023		3/30/2029		13,257		12,882		13,257
Urology Management Holdings, Inc.		Health Care Providers & Services		S+625			1.00	%		11.79	%		2/7/2023		6/15/2026		7,138		6,959		7,066
UVP Management, LLC		Health Care Providers & Services		S+625			1.00	%		11.79	%		9/18/2023		9/15/2025		15,444		15,063		15,058
Vessco Midco Holdings, LLC(16)		Water Utilities		S+450			1.00	%		9.92	%		4/1/2022		11/2/2026		2,466		2,408		2,466
West-NR Parent, Inc.		Insurance		S+625			1.00	%		11.72	%		8/1/2023		12/27/2027		13,201		12,945		12,937
World Insurance Associates, LLC(16)		Insurance		S+575			1.00	%		11.14	%		4/1/2022		4/1/2026		48,250		48,141		48,250
Total First Lien Bank Debt/Senior Secured Loans																		$	921,022	$	928,465
Second Lien Asset-Based Senior Secured Loans
ACRES Commercial Mortgage, LLC		Diversified Financial Services		S+705			1.00	%		12.49	%		12/24/2021		8/21/2028		29,925	$	29,455	$	29,925
FGI Worldwide LLC		Diversified Financial Services		S+650			1.00	%		11.82	%		4/17/2023		4/17/2028		8,206		8,015		8,206
																		$	37,470	$	38,131
Second Lien Bank Debt/Senior Secured Loans
RD Holdco, Inc.** (2)		Diversified Consumer Services		S+975	(11)		1.00	%		—			12/23/2013		10/12/2026		15,065	$	12,297	$	7,532
See notes to consolidated financial statements.

7

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2023

(in thousands, except share/unit amounts)

Description	Industry	Spread Above Index (7)		Floor			Interest Rate (1)			Acquisition Date		Maturity Date		Par Amount		Cost		Fair Value
Senior Secured Loans (continued) —
First Lien Life Science Senior Secured Loans
Alimera Sciences, Inc.(16)	Pharmaceuticals		S+515		4.60	%		10.48	%		12/31/2019		5/1/2028	$	34,738	$	34,857	$	37,186
Apeel Technology, Inc	Biotechnology		S+625		1.00	%		8.75	%		6/29/2022		6/1/2027		3,643		3,641		4,062
Arcutis Biotherapeutics, Inc.(3)	Pharamceuticals		S+745		0.10	%		12.88	%		12/22/2021		1/1/2027		66,849		67,893		68,019
Ardelyx, Inc.(3)	Pharmaceuticals		S+795		1.00	%		13.30	%		2/23/2022		3/1/2027		9,475		9,526		10,503
BridgeBio Pharma, Inc.(3)	Biotechnology		—		—			9.00	% (22)		11/17/2021		11/17/2026		40,753		40,487		40,854
Cerapedics, Inc.	Biotechnology		S+620		2.75	%		11.53	%		12/27/2022		1/1/2028		26,939		27,000		27,007
Glooko, Inc.(16)	Health Care Technology		S+790		0.10	%		13.33	%		9/30/2021		10/1/2026		11,912		11,984		12,150
Meditrina, Inc.	Health Care Equipment & Supplies		S+550		3.45	%		10.83	%		12/20/2022		12/1/2027		3,367		3,365		3,384
Neuronetics, Inc.(16)	Health Care Equipment & Supplies		S+565		3.95	%		10.98	%		3/2/2020		3/29/2028		19,299		19,256		19,396
OmniGuide Holdings, Inc. (13)	Health Care Equipment & Supplies		S+580		5.31	%		11.23	%		7/30/2018		11/1/2025		24,500		24,590		24,561
Outset Medical, Inc.(3)(16)	Health Care Equipment & Supplies		S+515		2.75	%		10.48	%		11/3/2022		11/1/2027		35,084		35,162		35,171
Vapotherm, Inc.	Health Care Equipment & Supplies		S+930		1.00	%		14.73	% (24)		2/18/2022		2/1/2027		36,826		37,086		37,378
Vertos Medical, Inc.	Health Care Equipment & Supplies		S+515		4.75	%		10.48	%		6/14/2023		7/1/2028		6,651		6,587		6,567
Total First Lien Life Science Senior Secured Loans																$	321,434	$	326,238
Total Senior Secured Loans																$	1,292,223	$	1,300,366

Description	Industry	Interest Rate (1)	Acquisition Date	Maturity Date	Par Amount		Cost		Fair Value
Equipment Financing — 26.9%
A&A Crane and Rigging, LLC (10)	Commercial Services & Supplies	7.78%	3/27/2023	3/27/2028	$	72	$	72	$	72
Aero Operating LLC (10)	Commercial Services & Supplies	8.47-9.64%	2/12/2021	3/1/2025-12/1/2026		1,493		1,492		1,491
AFG Dallas III, LLC (10)	Diversified Consumer Services	10.00-11.29%	8/11/2022	8/11/2026-3/1/2027		1,182		1,182		1,182
Air Methods Corporation (10)	Airlines	7.08-7.13%	11/3/2021	11/3/2026-11/23/2026		3,231		3,275		3,231
AmeraMex International, Inc. (10)	Commercial Services & Supplies	10.00%	3/29/2019	4/15/2025		563		563		569
Bazzini, LLC (10)	Food & Staples Retailing	10.46%	12/23/2022	1/1/2028		2,084		2,146		2,084
Boart Longyear Company (10)	Metals & Mining	8.31-10.44%	5/28/2020	7/1/2024-10/7/2026		2,870		2,870		2,870
Bowman Energy Solutions, LLC (10)	Commercial Services & Supplies	7.42%	7/1/2022	8/1/2026		124		124		124
C-Port/Stone LLC (10)	Oil, Gas & Consumable Fuels	8.54%	10/7/2022	11/1/2027		6,366		6,206		6,175
Capital City Jet Center, Inc. (10)	Airlines	10.00%	4/4/2018	10/4/2023-6/22/2026		1,536		1,536		1,528
Carolina’s Contracting, LLC (10)	Diversified Consumer Services	8.40 - 8.72 %	3/7/2023	3/7/2028-5/18/2028		3,688		3,723		3,688
CKD Holdings, Inc. (10)	Road & Rail	8.10 - 8.60 %	9/22/2022	6/22/2026-9/22/2027		3,076		3,076		3,076
Clubcorp Holdings, Inc. (10)	Hotels, Restaurants & Leisure	9.36-13.01%	5/27/2021	4/1/2025-5/1/2028		6,880		6,880		6,880
Complete Equipment Rentals, LLC (10)	Commercial Services & Supplies	6.75-7.15%	3/23/2023	4/1/2028-6/1/2028		1,926		1,895		1,893
Dongwon Autopart Technology Inc. (10)	Auto Components	7.96%	2/2/2021	1/1/2026		1,411		1,424		1,411
Double S Industrial Contractors, Inc. (10)	Commercial Services & Supplies	8.60%	7/28/2023	8/1/2027		119		119		119
Drillers Choice, Inc. (10)	Commercial Services & Supplies	8.00-10.08%	10/31/2022	11/1/2027-6/1/2029		1,962		1,965		1,962
Energy Drilling Services, LLC (10)	Diversified Consumer Services	6.58-9.16%	8/26/2022	11/9/2025-9/1/2027		1,139		1,139		1,139
Environmental Protection & Improvement Company, LLC (10)	Road & Rail	8.25%	9/30/2020	10/1/2027		4,746		4,769		4,746
Equipment Operating Leases, LLC (2)(12)	Multi-Sector Holdings	8.37%	4/27/2018	4/27/2025		3,498		3,498		3,411
Extreme Steel Crane & Rigging, LLC (10)	Commercial Services & Supplies	9.52%	3/3/2023	3/3/2027		902		910		902
First American Commercial Bancorp, Inc. (10)	Diversified Financial Services	7.50-9.02%	10/28/2021	10/1/2026-3/1/2027		2,449		2,451		2,449
First National Capital, LLC (10)	Diversified Financial Services	9.00%	11/5/2021	8/1/2026		5,739		5,739		5,739
Freightsol LLC (10)	Road & Rail	12.51-12.89%	4/9/2019	11/1/2023		289		289		289
Georgia Jet, Inc. (10)	Airlines	8.00%	12/4/2017	1/4/2024		128		128		128
GMT Corporation (10)	Machinery	10.71%	10/23/2018	1/1/2026		4,070		4,073		4,070
Hawkeye Contracting Company, LLC (10)	Construction & Engineering	10.50%	10/8/2021	11/1/2025		769		769		769
HTI Logistics Corporation (10)	Commercial Services & Supplies	9.69-9.94%	11/15/2018	5/1/2024-9/1/2025		189		189		184
International Automotive Components Group, North America, Inc. (10)	Auto Components	7.95%	6/23/2021	6/23/2025		4,375		4,394		4,288
Kool Pak, LLC (10)	Road & Rail	8.58%	2/5/2018	3/1/2024		71		71		71
Loc Performance Products, LLC (10)	Machinery	10.50%	12/29/2022	6/1/2027		673		673		673
Loyer Capital LLC (2)(12)	Multi-Sector Holdings	8.73-11.52%	5/16/2019	5/16/2024-9/25/2024		7,500		7,500		7,361
Lux Credit Consultants, LLC (10)	Road & Rail	8.28-12.09%	6/17/2021	12/1/2024-12/1/2026		12,142		12,142		12,142
Lux Vending, LLC (10)	Consumer Finance	12.46-13.26%	8/20/2021	7/20/2024-10/1/2024		895		903		895
Miranda Logistics Enterprise, Inc. (10)	Construction & Engineering	7.69%	4/14/2023	4/14/2028		824		824		824
Mountain Air Helicopters, Inc. (10)	Commercial Services & Supplies	10.00%	7/31/2017	2/28/2025		279		278		279
Nimble Crane LLC (10)	Commercial Services & Supplies	9.18%	7/13/2023	7/13/2028		975		975		975
No Limit Construction Services, LLC (10)	Commercial Services & Supplies	7.73%	5/5/2023	6/1/2028		124		124		124
Ozzies, Inc. (10)	Commercial Services & Supplies	10.72%	12/23/2022	1/1/2027		1,731		1,783		1,731
PCX Aerostructures LLC (10)	Aerospace & Defense	9.32%	11/23/2022	12/1/2028		2,401		2,401		2,401
Rane Light Metal Castings Inc. (10)	Machinery	10.00%	6/1/2020	6/1/2024		83		83		83
Rango, Inc. (10)	Commercial Services & Supplies	9.33-9.77%	9/24/2019	10/1/2023-11/1/2024		731		742		717
Rayzor’s Edge LLC (10)	Diversified Consumer Services	7.69-8.27%	5/19/2023	5/18/2030-6/30/2030		732		732		732
RH Land Construction, LLC & Harbor Dredging LA, Inc. (10)	Construction & Engineering	8.08%	5/10/2023	5/10/2026		124		124		124
Royal Express Inc. (10)	Road & Rail	9.53%	1/17/2019	2/1/2024		220		221		220
Rotten Rock Hardscaping & Tree Service (10)	Diversified Consumer Services	8.21%	12/6/2022	12/6/2027		214		214		214
Rutt Services, LLC (10)	Commercial Services & Supplies	8.95%	8/11/2023	8/11/2030		1,201		1,201		1,201
Signet Marine Corporation (10)	Transportation Infrastructure	8.50%	10/31/2022	11/1/2029		12,712		12,753		12,712
SLR Equipment Finance(2)	Multi-Sector Holdings	8.50%	1/24/2022	1/27/2024		2,500		2,500		2,500
Smiley Lifting Solutions, LLC(10)	Commercial Services & Supplies	7.82-8.61%	6/30/2022	9/15/2026-6/27/2030		6,123		6,123		6,123
ST Coaches, LLC (10)	Road & Rail	8.50-8.58%	7/31/2017	10/1/2023-1/25/2025		1,111		1,111		1,075
Star Coaches Inc. (10)	Road & Rail	8.42%	3/9/2018	4/1/2025		2,472		2,472		2,218
Superior Transportation, Inc. (10)	Road & Rail	10.22-10.63%	7/31/2017	1/1/2026		2,589		2,589		2,589
The Smedley Company & Smedley Services, Inc. (10)	Commercial Services & Supplies	4.07%	7/31/2017	1/15/2028		1,476		1,476		1,476
Trinity Equipment, Inc. (10)	Commercial Services & Supplies	8.78-8.93%	5/4/2023	5/4/2028-5/19/2028		1,407		1,407		1,407
Trinity Equipment Rentals, Inc. (10)	Commercial Services & Supplies	7.94-8.75%	10/8/2021	11/1/2024-12/1/2026		416		416		416
U.S. Crane & Rigging, LLC (10)	Commercial Services & Supplies	8.73%-10.92%	12/23/2022	3/1/2027-9/1/2028		2,717		2,717		2,717
Up Trucking Services, LLC (10)	Road & Rail	11.21%	3/23/2018	8/1/2024		256		258		256
Waste Pro of Florida, Inc. & Waste Pro USA, Inc. (10)	Commercial Services & Supplies	9.17%	4/18/2023	4/18/2028		9,330		9,485		9,330
Wind River Environmental, LLC (10)	Diversified Consumer Services	8.43-10.00%	7/31/2019	8/1/2024-10/5/2025		387		387		387
Womble Company, Inc. (10)	Energy Equipment & Services	9.11%	12/27/2019	1/1/2025		256		256		246
Worldwide Flight Services, Inc. (10)	Transportation Infrastructure	8.32-9.93%	9/23/2022	9/23/2027-8/16/2028		3,192		3,240		3,192
Zamborelli Enterprises Pacific Souther Foundation (10)	Diversified Consumer Services	8.91%	12/7/2022	1/1/2027		606		611		606

See notes to consolidated financial statements.

8

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2023

(in thousands, except share/unit amounts)

Description	Industry		Acquisition Date		Shares/Units		Cost		Fair Value
Equipment Financing (continued) —
SLR Equipment Finance Equity Interests (2)(9)(17)*		Multi-Sector Holdings		7/31/2017		200		145,000		120,820
Total Equipment Financing							$	290,688	$	265,306

Description

Industry

Interest Rate (1)

Acquisition Date

Maturity Date

Par Amount

Cost

Fair Value

Preferred Equity – 0.4%

SOINT, LLC (2)(3)(4)

Aerospace & Defense

5.00

% (11)

6/8/2012

6/30/2025

—

$

5,114

$

3,801

Description	Industry	Acquisition Date		Shares/ Units		Cost		Fair Value
Common Equity/Equity Interests/Warrants— 61.1%
Assertio Holdings, Inc. (8)*	Pharmaceuticals		7/31/2023		12,510	$	51	$	32
aTyr Pharma, Inc. Warrants *	Pharmaceuticals		11/18/2016		6,347		106		—
Bayside Parent, LLC (27)*	Health Care Providers & Services		5/31/2023		6,526		11,411		3,816
CardioFocus, Inc. Warrants *	Health Care Equipment & Supplies		3/31/2017		90		51		—
Centrexion Therapeutics, Inc. Warrants *	Pharmaceuticals		6/28/2019		289,102		136		50
Conventus Orthopaedics, Inc. Warrants *	Health Care Equipment & Supplies		6/15/2016		157,500		65		—
Delphinus Medical Technologies, Inc. Warrants *	Health Care Equipment & Supplies		8/18/2017		444,388		74		87
Essence Group Holdings Corporation (Lumeris) Warrants *	Health Care Technology		3/22/2017		260,000		129		342
KBH Topco LLC (Kingsbridge) (2)(5)(18)	Multi-Sector Holdings		11/3/2020		73,500,000		136,596		146,000
Meditrina, Inc. Warrants *	Health Care Equipment & Supplies		12/20/2022		29,366		23		20
NSPC Holdings, LLC (National Spine) *	Health Care Providers & Services		2/13/2023		207,043		657		273
RD Holdco, Inc. (Rug Doctor) (2)*	Diversified Consumer Services		12/23/2013		231,177		15,683		—
RD Holdco, Inc. (Rug Doctor) Class B (2)*	Diversified Consumer Services		12/23/2013		522		5,216		—
RD Holdco, Inc. (Rug Doctor) Warrants (2)*	Diversified Consumer Services		12/23/2013		30,370		381		—
Senseonics Holdings, Inc. (3)(8)*	Health Care Equipment & Supplies		7/25/2019		469,353		235		283
SLR-AMI Topco Blocker, LLC (27)(28)*	Internet & Catalog Retail		6/16/2023		—		19,880		15,100
SLR Business Credit (2)(3)(19)	Diversified Financial Services		4/1/2022		100		81,583		90,370
SLR Credit Solutions (2)(3)(20)	Diversified Financial Services		12/28/2012		280,303		280,737		281,000
SLR Healthcare ABL (2)(3)(21)	Diversified Financial Services		4/1/2022		32,839		34,335		34,850
SLR Senior Lending Program LLC (2)(3)(25)	Asset Management		12/1/2022		—		28,750		29,277
Vapotherm, Inc. Warrants*	Health Care Equipment & Supplies		2/18/2022		48,969		290		28
Venus Concept Ltd. Warrants* (f/k/a Restoration Robotics)	Health Care Equipment & Supplies		5/10/2018		2,230		152		—
Vertos Medical, Inc. Warrants*	Health Care Equipment & Supplies		6/14/2023		161,761		51		55
Total Common Equity/Equity Interests/Warrants						$	616,592	$	601,583
Total Investments (6) — 220.4%						$	2,204,617	$	2,171,056

Description	Industry		Acquisition Date		Maturity Date		Par Amount
Cash Equivalents — 33.7%
U.S. Treasury Bill		Government		9/29/2023		11/21/2023	$	335,000	$	332,557	$	332,557
Total Investments & Cash Equivalents —254.1%									$	2,537,174	$	2,503,613
Liabilities in Excess of Other Assets — (154.1%)												(1,518,228	)
Net Assets — 100.0%											$	985,385

(1) Floating rate debt investments typically bear interest at a rate determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), the Secured Overnight Financing Rate (“SOFR” or “S”) or the prime index rate (“PRIME” or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of September 30, 2023.

(2) Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Transactions during the nine months ended September 30, 2023 in these controlled investments are as follows:

Name of Issuer	Fair Value at December 31, 2022		Gross Additions		Gross Reductions			Realized Gain (Loss)		Change in Unrealized Gain (Loss)			Fair Value at September 30, 2023		Interest/ Dividend/Misc Income
Equipment Operating Leases, LLC	$	3,741	$	—	$	(338	)	$	—	$	8		$	3,411	$	231
Kingsbridge Holdings, LLC		80,000		—		—			—		(70	)		80,000		7,434
KBH Topco, LLC (Kingsbridge)		148,444		—		—			—		(2,444	)		146,000		10,500
Loyer Capital LLC		7,361		—		—			—		—			7,361		565
RD Holdco, Inc. (Rug Doctor, common equity)		—		—		—			—		—			—		—
RD Holdco, Inc. (Rug Doctor, class B)		—		—		—			—		—			—		—
RD Holdco, Inc. (Rug Doctor, warrants)		—		—		—			—		—			—		—
RD Holdco, Inc. (debt)		6,521		507		—			—		504			7,532		—
SLR Business Credit		89,370		—		—			—		1,000			90,370		5,250
SLR Credit Solutions		288,760		—		—			—		(7,760	)		281,000		15,000
SLR Equipment Finance (equity)		120,820		—		—			—		—			120,820		—
SLR Equipment Finance (debt)		5,000		2,500		(5,000	)		—		—			2,500		174
SLR Healthcare ABL		34,350		—		—			—		500			34,850		2,595
SLR Senior Lending Program LLC		9,426		19,250		—			—		601			29,277		393
SOINT, LLC		3,801		187		—			—		(187	)		3,801		187
	$	797,594	$	22,444	$	(5,338	)	$	—	$	(7,848	)	$	806,922	$	42,329

See notes to consolidated financial statements.

9

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2023

(in thousands)

(3) Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the 1940 Act. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of September 30, 2023, on a fair value basis, non-qualifying assets in the portfolio represented 25.1% of the total assets of the Company.

(4) The Company’s investment in SOINT, LLC includes a one dollar investment in common shares.

(5) Kingsbridge Holdings, LLC is held through KBH Topco LLC, a Delaware corporation.

(6) Aggregate net unrealized appreciation for U.S. federal income tax purposes is $31,537; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $152,992 and $121,455, respectively, based on a tax cost of $2,139,519. Unless otherwise noted, all of the Company’s investments are pledged as collateral against the borrowings outstanding on the senior secured credit facility. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated.

(7) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR, SOFR or PRIME rate. These instruments are often subject to a LIBOR, SOFR or PRIME rate floor.

(8) Denotes a Level 1 investment.

(9) SLR Equipment Finance is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC, a wholly-owned consolidated subsidiary.

(10) Indicates an investment that is wholly held by the Company through NEFPASS LLC.

(11) Interest is paid in kind (“PIK”).

(12) Denotes a subsidiary of SLR Equipment Finance.

(13) OmniGuide Holdings, Inc., Domain Surgical, Inc. and OmniGuide, Inc. are co-borrowers.

(14) AmeriMark Interactive, LLC, AmeriMark Direct LLC, AmeriMark Intermediate Sub, Inc., L.T.D. Commodities LLC, Dr. Leonard’s Healthcare Corp. and Amerimark Intermediate Holdings, LLC are each co-Borrowers.

(15) Spread is 1.00% Cash / 6.00% PIK.

(16) Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SUNS SPV LLC (the “SUNS SPV”). Such investments are pledged as collateral under the Senior Secured Revolving SPV Credit Facility (the “SPV Credit Facility”) (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company.

(17) See note 10 to the consolidated financial statements.

(18) See note 11 to the consolidated financial statements.

(19) See note 13 to the consolidated financial statements.

(20) See note 9 to the consolidated financial statements.

(21) See note 12 to the consolidated financial statements.

(22) BridgeBio Pharma, Inc. may elect to defer up to 3.00% of the coupon as PIK.

(23) The Company became an Affiliated Person to Bayside Opco, LLC and Bayside Parent, LLC on May 31, 2023 and to Amerimark Intermediate Holdings, LLC and SLR- AMI Topco Blocker, LLC on June 16, 2023.

(24) Vapotherm, Inc. may elect to defer up to 9.00% of the coupon as PIK.

(25) See note 17 to the consolidated financial statements.

(26) iCIMS, Inc. may elect to defer up to 3.875% of the coupon as PIK.

(27) Denotes investments in which we are an “Affiliated Person” but do not exercise a controlling influence, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 5% but less than 25% of the outstanding voting securities of the investment. Transactions during the nine months ended September 30, 2023 (beginning with the date at which the Company became an Affiliated Person) in these affiliated investments are as follows:

Name of Issuer	Fair Value at Date of Affiliation(23)		Gross Additions		Gross Reductions			Realized Gain (Loss)		Change in Unrealized Gain (Loss)			Fair Value at September 30, 2023		Interest Income
Oldco AI, LLC (f/k/a AmeriMark)	$	—	$	1,262	$	(941	)	$	—	$	—		$	321	$	15
Oldco AI, LLC (f/k/a AmeriMark)		9,371		—		(12,866	)		—		3,495			—		—
Bayside Opco, LLC		846		21		(465	)		—		—			402		32
Bayside Opco, LLC		18,224		583		—			—		—			18,807		784
Bayside Parent, LLC (loan)		4,773		186		—			—		—			4,959		250
Bayside Parent, LLC (equity)		4,681		—		—			—		(865	)		3,816		—
SLR-AMI Topco Blocker, LLC		7,014		12,867		—			—		(4,781	)		15,100		—
	$	44,909	$	14,919	$	(14,272	)	$	—	$	(2,151	)	$	43,405	$	1,081

(28) Through this entity and other intermediate entities, the Company owns approximately 7.3% of the underlying common units of ASC Holdco, LLC, a joint venture which owns certain assets of the former Amerimark Interactive, LLC.

(29) Kaseya, Inc. may elect to defer up to 2.50% of the coupon as PIK.

* Non-income producing security.

** Investment is on non-accrual status.

See notes to consolidated financial statements.

10

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2023

(in thousands)

Industry Classification	Percentage of Total Investments (at fair value) as of September 30, 2023
Diversified Financial Services (includes SLR Credit Solutions, SLR Business Credit and SLR Healthcare ABL)		21.6	%
Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment Operating Leases, LLC and Loyer Capital LLC)		16.6	%
Health Care Providers & Services		11.8	%
Health Care Equipment & Supplies		6.5	%
Insurance		6.4	%
Pharmaceuticals		5.3	%
Software		3.5	%
Diversified Consumer Services		3.4	%
Biotechnology		3.3	%
Capital Markets		2.0	%
Commercial Services & Supplies		2.0	%
Thrifts & Mortgage Finance		1.4	%
Asset Management		1.4	%
Road & Rail		1.3	%
Personal Products		1.3	%
Life Sciences Tools & Services		1.1	%
Wireless Telecommunication Services		1.1	%
Internet Software & Services		0.9	%
Building Products		0.9	%
Transportation Infrastructure		0.7	%
Internet & Catalog Retail		0.7	%
Packaged Foods & Meats		0.7	%
Communications Equipment		0.6	%
Health Care Technology		0.6	%
IT Services		0.5	%
Leisure Equipment & Products		0.5	%
Trading Companies & Distributors		0.5	%
Auto Parts & Equipment		0.5	%
Specialty Retail		0.4	%
Hotels, Restaurants & Leisure		0.3	%
Aerospace & Defense		0.3	%
Oil, Gas & Consumable Fuels		0.3	%
Auto Components		0.3	%
Footwear		0.3	%
Media		0.2	%
Airlines		0.2	%
Machinery		0.2	%
Metals & Mining		0.1	%
Water Utilities		0.1	%
Food & Staples Retailing		0.1	%
Construction & Engineering		0.1	%
Consumer Finance		0.0	%
Energy Equipment & Services		0.0	%
Total Investments		100.0	%

See notes

to

consolidated financial statements.

11

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2022

(in thousands, except share/unit amounts)

Description	Industry		Spread Above Index (7)			Floor			Interest Rate (1)			Acquisition Date		Maturity Date		Par Amount		Cost		Fair Value
Senior Secured Loans —124.6%
First Lien Bank Debt/Senior Secured Loans
Aegis Toxicology Sciences Corporation(16)		Health Care Providers & Services		L+550			1.00	%		10.09	%		5/7/2018		5/9/2025	$	17,103	$	16,793	$	17,103
All States Ag Parts, LLC(16)		Trading Companies & Distributors		S+575			1.00	%		10.19	%		4/1/2022		9/1/2026		4,197		4,081		4,197
American Teleconferencing Services, Ltd**		Communications Equipment		L+650			1.00	%		—			5/5/2016		9/9/2021		36,135		25,926		—
American Teleconferencing Services, Ltd**		Communications Equipment		L+650			1.00	%		—			9/17/2021		1/31/2023		6,405		6,254		224
AmeriMark Intermediate Holdings, LLC(14)		Internet & Catalog Retail		L+800			1.00	%		14.77	%		7/28/2021		10/15/2026		24,087		23,711		22,882
Apex Services Partners, LLC(16)		Diversified Consumer Services		S+525			1.00	%		9.80	%		8/31/2022		7/31/2025		14,021		13,644		14,021
Atria Wealth Solutions, Inc.(16)		Diversified Financial Services		S+600			1.00	%		10.84	%		9/14/2018		2/29/2024		8,149		8,107		8,149
Basic Fun, Inc.(16)		Specialty Retail		L+550			1.00	%		10.27	%		10/30/2020		10/30/2023		2,162		2,152		2,162
BayMark Health Services, Inc.(16)		Health Care Providers & Services		L+500			1.00	%		9.73	%		4/1/2022		6/11/2027		9,432		9,078		9,432
BDG Media, Inc.		Media		L+900			0.25	%		13.17	%		7/18/2022		4/27/2023		14,454		14,454		14,454
CC SAG Holdings Corp. (Spectrum Automotive)(16)		Diversified Consumer Services		L+575			0.75	%		10.48	%		6/29/2021		6/29/2028		20,427		20,057		20,427
Composite Technology Acquisition Corp.(16)		Building Products		L+475			1.00	%		9.73	%		4/1/2022		2/1/2025		10,386		9,983		10,386
Copper River Seafoods, Inc.		Food Products		P+275			—			10.25	%		8/31/2022		4/23/2025		8,405		8,405		8,405
DeepIntent, Inc.		Media		P+175			—			9.25	%		10/12/2022		3/25/2025		16,951		16,951		16,951
Enhanced Permanent Capital, LLC(3)		Capital Markets		L+700			1.00	%		10.13	%		12/29/2020		12/29/2025		35,205		34,496		35,205
ENS Holdings III Corp. & ES Opco USA LLC (Bluefin)(16)		Trading Companies & Distributors		S+475			1.00	%		9.43	%		4/1/2022		12/31/2025		4,978		4,804		4,978
Enverus Holdings, Inc. (fka Drilling Info Holdings)(16)		IT Services		L+450			—			8.88	%		4/1/2022		7/30/2025		11,598		11,129		11,598
Erie Construction Mid-west, LLC(16)		Building Products		S+475			1.00	%		9.79	%		4/1/2022		7/30/2027		8,915		8,580		8,915
Foundation Consumer Brands, LLC(16)		Personal Products		L+550			1.00	%		10.15	%		2/12/2021		2/12/2027		35,273		34,421		35,273
GSM Acquisition Corp.(16)		Leisure Equipment & Products		S+500			1.00	%		9.03	%		4/1/2022		11/16/2026		11,022		10,562		10,912
Higginbotham Insurance Agency, Inc.(16)		Insurance		L+525			0.75	%		9.63	%		4/1/2022		11/25/2026		6,223		5,994		6,223
High Street Buyer, Inc.(16)		Insurance		L+600			0.75	%		10.73	%		4/1/2022		4/16/2028		5,188		4,900		5,188
Human Interest Inc.		Internet Software & Services		S+785			1.00	%		11.97	%		6/30/2022		7/1/2027		20,104		19,783		20,104
iCIMS, Inc.		Software		S+725			0.75	%		11.52	% (26)		8/18/2022		8/18/2028		32,084		31,548		31,522
Ivy Fertility Services, LLC		Health Care Providers & Services		L+625			1.00	%		10.39	%		12/22/2021		2/25/2026		30,092		29,415		30,393
Kaseya, Inc.(16)		Software		S+575			0.75	%		10.33	%		6/22/2022		6/23/2029		32,426		31,966		32,426
Kid Distro Holdings, LLC (Distro Kid)(16)		Software		L+575			1.00	%		10.48	%		9/24/2021		10/1/2027		26,452		26,015		26,452
Kingsbridge Holdings, LLC(2)		Multi-Sector Holdings		L+700			1.00	%		10.75	%		12/21/2018		12/21/2024		80,000		79,800		80,000
KORE Wireless Group, Inc.(16)		Wireless Telecommunication Services		S+550			—			10.08	%		12/21/2018		12/21/2024		23,588		23,123		23,588
Logix Holding Company, LLC(16)		Communications Equipment		L+575			1.00	%		10.13	%		9/14/2018		12/22/2024		14,009		13,246		13,449
Luxury Asset Capital, LLC(16)		Thrifts & Mortgage Finance		S+675			1.00	%		10.99	%		7/15/2022		7/15/2027		27,500		26,991		27,500
Maurices, Incorporated(16)		Specialty Retail		S+675			1.00	%		8.74	%		8/27/2021		6/1/2024		7,808		7,678		7,808
Montefiore Nyack Hospital		Health Care Providers & Services		L+495			—			9.72	%		8/9/2022		11/15/2024		3,966		3,966		3,966
NAC Holdings Corporation (Jaguar)(16)		Insurance		S+525			1.00	%		9.45	%		7/30/2021		9/28/2024		28,603		28,214		28,603
National Spine and Pain Centers, LLC		Health Care Providers & Services		L+500			1.00	%		7.31	%		4/1/2022		6/2/2024		2,681		2,564		2,547
One Touch Direct, LLC		Commercial Services & Supplies		P+75			—			8.25	%		4/3/2020		3/30/2024		4,431		4,431		4,431
Orthopedic Care Partners Management, LLC		Health Care Providers & Services		S+650			1.00	%		10.91	%		8/17/2022		5/16/2024		3,111		3,092		3,111
Pediatric Home Respiratory Services, LLC		Health Care Providers & Services		S+625			1.00	%		10.67	%		8/19/2022		12/4/2024		1,327		1,309		1,313
Peter C. Foy & Associates Insurance Services, LLC		Insurance		S+600			0.75	%		10.44	%		4/1/2022		11/1/2028		10,854		10,699		10,854
PhyNet Dermatology LLC		Health Care Providers & Services		S+625	(15)		1.00	%		9.81	%		9/5/2018		8/16/2024		14,458		14,420		14,458
Pinnacle Treatment Centers, Inc.(16)		Health Care Providers & Services		S+650			1.00	%		10.57	%		1/22/2020		1/2/2026		27,997		27,528		27,367
Plastics Management, LLC(16)		Health Care Providers & Services		S+500			1.00	%		9.89	%		4/1/2022		8/18/2027		9,491		9,161		9,491
PPT Management Holdings, LLC(16)		Health Care Providers & Services		L+850	(11)		1.00	%		12.83	%		9/14/2018		1/30/2023		32,163		31,987		25,827
RQM+ Corp.(16)		Life Sciences Tools & Services		S+575			1.00	%		10.97	%		8/20/2021		8/12/2026		26,823		26,455		26,823
RSC Acquisition, Inc.(16)		Insurance		S+550			0.75	%		9.26	%		4/1/2022		11/1/2026		6,985		6,813		6,985
RxSense Holdings LLC(16)		Diversified Consumer Services		L+500			1.00	%		9.41	%		4/1/2022		3/13/2026		11,775		11,357		11,775
SCP Eye Care, LLC		Health Care Providers & Services		S+575			1.00	%		9.46	%		10/6/2022		10/5/2029		8,314		8,050		8,044
SHO Holding I Corporation (Shoes for Crews)(16)		Footwear		L+523			1.00	%		9.66	%		4/1/2022		4/27/2024		5,704		5,361		5,419
Southern Orthodontic Partners Management, LLC(16)		Health Care Providers & Services		S+600			1.00	%		10.77	%		6/3/2022		1/27/2026		1,399		1,387		1,399
SPAR Marketing Force, Inc.		Media		P+95			—			8.45	%		7/18/2022		10/10/2024		9,162		9,162		9,162
Stryten Resources LLC		Auto Parts & Equipment		S+800			1.00	%		12.44	%		8/11/2021		10/12/2026		25,922		25,506		25,922
SunMed Group Holdings, LLC(16)		Health Care Equipment & Supplies		L+575			0.75	%		10.48	%		6/16/2021		6/16/2028		24,953		24,446		24,953
TAUC Management, LLC(16)		Health Care Providers & Services		L+525			1.00	%		9.98	%		4/1/2022		2/12/2027		6,899		6,585		6,864
Tilley Distribution, Inc.(16)		Trading Companies & Distributors		S+550			1.00	%		10.14	%		4/1/2022		12/31/2026		9,996		9,527		9,996
Ultimate Baked Goods Midco LLC (Rise Baking)(16)		Packaged Foods & Meats		L+650			1.00	%		10.88	%		8/12/2021		8/13/2027		24,789		24,038		24,789
Vessco Midco Holdings, LLC(16)		Water Utilities		L+450			1.00	%		7.87	%		4/1/2022		11/2/2026		1,728		1,668		1,728
World Insurance Associates, LLC(16)		Insurance		S+575			1.00	%		9.31	%		4/1/2022		4/1/2026		31,624		30,785		30,359
Total First Lien Bank Debt/Senior Secured Loans																		$	912,558	$	886,513
Second Lien Asset-Based Senior Secured Loans
ACRES Commercial Mortgage, LLC		Diversified Financial Services		S+705			1.00	%		11.38	%		12/24/2021		8/21/2028		29,925	$	29,398	$	29,925
Second Lien Bank Debt/Senior Secured Loans
RD Holdco, Inc.** (2)		Diversified Consumer Services		S+975	(11)		1.00	%		—			12/23/2013		10/12/2026		13,043	$	11,791	$	6,521

See notes to consolidated financial statements.

12

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2022

(in thousands, except share/unit amounts)

Description	Industry	Spread Above Index (7)		Floor			Interest Rate (1)			Acquisition Date		Maturity Date		Par Amount		Cost		Fair Value
Senior Secured Loans (continued) —
First Lien Life Science Senior Secured Loans
Alimera Sciences, Inc.(16)	Pharmaceuticals		L+765		1.78	%		11.82	%		12/31/2019		7/1/2024	$	23,159	$	23,894	$	24,433
Apeel Technology, Inc	Biotechnology		S+625		1.00	%		8.75	%		6/29/2022		6/1/2027		3,643		3,620		3,643
Arcutis Biotherapeutics, Inc.(3)	Pharamceuticals		L+745		0.10	%		11.62	%		12/22/2021		1/1/2027		66,849		67,077		67,685
Ardelyx, Inc.(3)	Pharmaceuticals		L+795		0.10	%		12.12	%		2/23/2022		3/1/2027		9,475		9,437		9,499
BridgeBio Pharma, Inc.(3)	Biotechnology		—		—			9.00	% (22)		11/17/2021		11/17/2026		39,839		39,340		39,839
Centrexion Therapeutics, Inc.	Pharmaceuticals		L+725		2.45	%		11.42	%		6/28/2019		1/1/2024		11,844		12,372		12,555
Cerapedics, Inc.	Biotechnology		S+620		2.75	%		10.52	%		12/27/2022		1/1/2028		26,939		26,874		26,872
Glooko, Inc.(16)	Health Care Technology		L+790		0.10	%		12.07	%		9/30/2021		10/1/2026		15,883		15,867		15,922
Meditrina, Inc.	Health Care Equipment & Supplies		S+550		3.45	%		9.82	%		12/20/2022		12/1/2027		3,367		3,338		3,359
Neuronetics, Inc.(16)	Health Care Equipment & Supplies		L+765		1.66	%		11.82	%		3/2/2020		2/28/2025		18,012		18,450		19,003
OmniGuide Holdings, Inc. (13)	Health Care Equipment & Supplies		L+1405		0.10	%		18.22	% (23)		7/30/2018		7/1/2023		19,201		19,380		19,777
Outset Medical, Inc.(3)	Health Care Equipment & Supplies		S+515		2.75	%		9.33	%		11/3/2022		11/1/2027		35,084		34,880		34,820
Spectrum Pharmaceuticals, Inc.(16)	Biotechnology		S+570		2.30	%		9.88	%		9/21/2022		9/1/2027		10,525		10,406		10,420
Vapotherm, Inc.	Health Care Equipment & Supplies		S+830		1.00	%		12.58	% (24)		2/18/2022		2/1/2027		34,455		34,270		34,628
Total First Lien Life Science Senior Secured Loans																$	319,205	$	322,455
Total Senior Secured Loans																$	1,272,952	$	1,245,414

Description	Industry	Interest Rate (1)		Acquisition Date		Maturity Date		Par Amount		Cost		Fair Value
Equipment Financing — 26.6%
Aero Operating LLC (10)	Commercial Services & Supplies		8.47-9.64%		2/12/2021		3/1/2025-12/1/2026	$	2,264	$	2,262	$	2,262
AFG Dallas III, LLC (10)	Diversified Consumer Services		10.00%		8/11/2022		8/11/2026-8/29/2026		1,036		1,036		1,036
Air Methods Corporation (10)	Airlines		7.08-7.13%		11/3/2021		11/3/2026-11/23/2026		3,600		3,660		3,600
AmeraMex International, Inc. (10)	Commercial Services & Supplies		10.00%		3/29/2019		9/15/2024		1,059		1,059		1,069
Bazzini, LLC (10)	Food & Staples Retailing		10.46%		12/23/2022		1/1/2028		2,365		2,440		2,365
Boart Longyear Company (10)	Metals & Mining		8.31-10.44%		5/28/2020		7/1/2024-10/7/2026		4,568		4,568		4,568
Bowman Energy Solutions, LLC (10)	Commercial Services & Supplies		7.42%		7/1/2022		8/1/2026		153		153		153
C-Port/Stone LLC (10)	Oil, Gas & Consumable Fuels		8.54%		10/7/2022		11/1/2027		6,708		6,514		6,507
Capital City Jet Center, Inc. (10)	Airlines		10.00%		4/4/2018		10/4/2023-6/22/2026		2,241		2,241		2,214
Champion Air, LLC (10)	Airlines		10.00%		3/19/2018		1/1/2023		1,055		1,055		1,055
CKD Holdings, Inc. (10)	Road & Rail		8.10-8.60%		9/22/2022		3/22/2026-9/22/2027		3,690		3,690		3,690
Clubcorp Holdings, Inc. (10)	Hotels, Restaurants & Leisure		9.36-13.01%		5/27/2021		4/1/2025-1/1/2028		6,539		6,539		6,539
Dongwon Autopart Technology Inc. (10)	Auto Components		7.96%		2/2/2021		1/1/2026		1,828		1,849		1,828
Drillers Choice, Inc. (10)	Commercial Services & Supplies		8.00%		10/31/2022		11/1/2027		1,589		1,589		1,589
EasyPak, LLC (10)	Containers & Packaging		9.01%		1/6/2021		1/1/2024		276		276		276
Energy Drilling Services, LLC (10)	Diversified Consumer Services		6.58-9.16%		8/26/2022		12/9/2025-9/1/2027		1,321		1,321		1,295
Environmental Protection & Improvement Company, LLC (10)	Road & Rail		8.25%		9/30/2020		10/1/2027		5,270		5,300		5,270
Equipment Operating Leases, LLC (2)(12)	Multi-Sector Holdings		8.37%		4/27/2018		4/27/2025		3,837		3,837		3,741
First American Commercial Bancorp, Inc. (10)	Diversified Financial Services		7.50-9.02%		10/28/2021		10/1/2026-3/1/2027		2,938		2,941		2,938
First National Capital, LLC (10)	Diversified Financial Services		9.00%		11/5/2021		8/1/2026		7,116		7,116		7,116
Freightsol LLC (10)	Road & Rail		12.51-12.89%		4/9/2019		11/1/2023		779		784		779
Garda CL Technical Services, Inc. (10)	Commercial Services & Supplies		8.30-8.77%		3/22/2018		6/5/2023-10/5/2023		469		469		468
Georgia Jet, Inc. (10)	Airlines		8.00%		12/4/2017		1/4/2024		425		425		425
GMT Corporation (10)	Machinery		10.71%		10/23/2018		1/1/2026		4,801		4,806		4,801
Hawkeye Contracting Company, LLC (10)	Construction & Engineering		10.50%		10/8/2021		11/1/2025		997		997		997
HTI Logistics Corporation (10)	Commercial Services & Supplies		9.69-9.94%		11/15/2018		5/1/2024-9/1/2025		290		290		283
International Automotive Components Group, North America, Inc. (10)	Auto Components		7.95%		6/23/2021		6/23/2025		6,072		6,109		5,951
Kool Pak, LLC (10)	Road & Rail		8.58%		2/5/2018		3/1/2024		194		194		194
Loc Performance Products, LLC (10)	Machinery		10.50%		12/29/2022		6/1/2027		767		767		767
Loyer Capital LLC (2)(12)	Multi-Sector Holdings		8.73-11.52%		5/16/2019		5/16/2024-9/25/2024		7,500		7,500		7,361
Lux Credit Consultants, LLC (10)	Road & Rail		8.28-12.09%		6/17/2021		12/1/2024-12/1/2026		16,411		16,411		16,411
Lux Vending, LLC (10)	Consumer Finance		12.46-13.26%		8/20/2021		8/20/2024-10/1/2024		1,638		1,663		1,638
Mountain Air Helicopters, Inc. (10)	Commercial Services & Supplies		10.00%		7/31/2017		2/28/2025		369		368		369
Ozzies, Inc. (10)	Commercial Services & Supplies		10.72%		12/23/2022		1/1/2027		2,005		2,072		2,005
PCX Aerostructures LLC (10)	Aerospace & Defense		9.32%		11/23/2022		12/1/2028		2,658		2,658		2,658
Rane Light Metal Castings Inc. (10)	Machinery		10.00%		6/1/2020		6/1/2024		159		159		159
Rango, Inc. (10)	Commercial Services & Supplies		9.33-9.79%		9/24/2019		4/1/2023-11/1/2024		1,940		1,960		1,904
Royal Coach Lines, Inc.(10)	Road & Rail		9.56%		11/21/2019		8/1/2025		849		849		775
Royal Express Inc. (10)	Road & Rail		9.53%		1/17/2019		2/1/2024		428		431		428
Rotten Rock Hardscaping & Tree Service (10)	Diversified Consumer Services		8.21%		12/6/2022		12/6/2027		245		245		245
Signet Marine Corporation (10)	Transportation Infrastructure		8.50%		10/31/2022		7/1/2029		14,102		14,152		14,102
SLR Equipment Finance(2)	Multi-Sector Holdings		8.50%		1/24/2022		1/24/2023		5,000		5,000		5,000
Smiley Lifting Solutions, LLC(10)	Commercial Services & Supplies		7.82-8.28%		6/30/2022		9/15/2026-12/29/2029		4,139		4,139		4,139
ST Coaches, LLC (10)	Road & Rail		8.47-8.58%		7/31/2017		7/1/2023-1/25/2025		1,521		1,521		1,459
Star Coaches Inc. (10)	Road & Rail		8.42%		3/9/2018		4/1/2025		2,887		2,887		2,591
Superior Transportation, Inc. (10)	Road & Rail		10.22-10.63%		7/31/2017		1/1/2026		3,369		3,369		3,369
The Smedley Company & Smedley Services, Inc. (10)	Commercial Services & Supplies		4.07%		7/31/2017		1/15/2028		1,706		1,706		1,706
Trinity Equipment Rentals, Inc. (10)	Commercial Services & Supplies		7.94-8.75%		10/8/2021		11/1/2024-12/1/2026		577		577		577
U.S. Crane & Rigging, LLC (10)	Commercial Services & Supplies		10.92%		12/23/2022		3/1/2027		2,005		2,005		2,005
Up Trucking Services, LLC (10)	Road & Rail		11.21%		3/23/2018		8/1/2024		469		473		469
Wind River Environmental, LLC (10)	Diversified Consumer Services		8.43-10.00%		7/31/2019		8/1/2024-10/5/2025		604		605		604
Womble Company, Inc. (10)	Energy Equipment & Services		9.11%		12/27/2019		1/1/2025		386		386		371
Worldwide Flight Services, Inc. (10)	Transportation Infrastructure		8.32-9.36%		9/23/2022		9/23/2027-10/28/2027		304		308		304
Zamborelli Enterprises Pacific Souther Foundation (10)	Diversified Consumer Services		8.91%		12/7/2022		1/1/2027		707		714		707
								Shares/Units
SLR Equipment Finance Equity Interests (2)(9)(17)*	Multi-Sector Holdings				7/31/2017				200		145,000		120,820
Total Equipment Financing										$	291,445	$	265,952

See notes to consolidated financial statements.

13

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2022

(in thousands, except share/unit amounts)

Description

Industry

Interest Rate (1)

Acquisition Date

Maturity Date

Par Amount

Cost

Fair Value

Preferred Equity – 0.4%

SOINT, LLC (2)(3)(4)

Aerospace & Defense

5.00

% (11)

6/8/2012

6/30/2023

49,273

$

4,927

$

3,801

Description	Industry	Acquisition Date		Shares/Units		Cost		Fair Value
Common Equity/Equity Interests/Warrants—57.1%
aTyr Pharma, Inc. Warrants *	Pharmaceuticals		11/18/2016		6,347	$	106	$	—
CardioFocus, Inc. Warrants *	Health Care Equipment & Supplies		3/31/2017		90		51		—
Centrexion Therapeutics, Inc. Warrants *	Pharmaceuticals		6/28/2019		289,102		136		82
Conventus Orthopaedics, Inc. Warrants *	Health Care Equipment & Supplies		6/15/2016		157,500		65		—
Delphinus Medical Technologies, Inc. Warrants *	Health Care Equipment & Supplies		8/18/2017		444,388		74		103
Essence Group Holdings Corporation (Lumeris) Warrants *	Health Care Technology		3/22/2017		260,000		129		366
KBH Topco LLC (Kingsbridge) (2)(5)(18)	Multi-Sector Holdings		11/3/2020		73,500,000		136,596		148,444
Meditrina, Inc. Warrants *	Health Care Equipment & Supplies		12/20/2022		29,366		23		23
RD Holdco, Inc. (Rug Doctor) (2)*	Diversified Consumer Services		12/23/2013		231,177		15,683		—
RD Holdco, Inc. (Rug Doctor) Class B (2)*	Diversified Consumer Services		12/23/2013		522		5,216		—
RD Holdco, Inc. (Rug Doctor) Warrants (2)*	Diversified Consumer Services		12/23/2013		30,370		381		—
Senseonics Holdings, Inc. (3)(8)*	Health Care Equipment & Supplies		7/25/2019		469,353		235		483
SLR Business Credit (2)(3)(19)	Diversified Financial Services		4/1/2022		100		81,583		89,370
SLR Credit Solutions (2)(3)(20)	Diversified Financial Services		12/28/2012		280,303		280,737		288,760
SLR Healthcare ABL (2)(3)(21)	Diversified Financial Services		4/1/2022		32,839		34,335		34,350
SLR Senior Lending Program LLC (2)(3)(25)	Asset Management		12/1/2022		—		9,500		9,426
Spectrum Pharmaceuticals, Inc. Warrants *	Biotechnology		9/21/2022		159,470		51		15
Vapotherm, Inc. Warrants*	Health Care Equipment & Supplies		2/18/2022		36,996		210		87
Venus Concept Ltd. Warrants* (f/k/a Restoration Robotics)	Health Care Equipment & Supplies		5/10/2018		33,430		152		—
Total Common Equity/Equity Interests/Warrants						$	565,263	$	571,509
Total Investments (6) — 208.7%						$	2,134,587	$	2,086,676

Description	Industry		Acquisition Date		Maturity Date		Par Amount
Cash Equivalents — 41.8%
U.S. Treasury Bill		Government		12/30/2022		2/23/2023	$	420,000	$	417,590	$	417,590
Total Investments & Cash Equivalents —250.5%									$	2,552,177	$	2,504,266
Liabilities in Excess of Other Assets — (150.5%)												(1,504,535	)
Net Assets — 100.0%											$	999,731

(1) Floating rate debt investments typically bear interest at a rate determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), the Secured Overnight Financing Rate (“SOFR” or “S”) or the prime index rate (“PRIME” or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of December 31, 2022.

(2) Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the Investment Company Act of 1940, as amended (“1940 Act”), due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Transactions during the year ended December 31, 2022 in these controlled investments are as follows:

Name of Issuer	Fair Value at December 31, 2021		Gross Additions		Gross Reductions			Realized Gain (Loss)		Change in Unrealized Gain (Loss)			Fair Value at December 31, 2022		Interest/ Dividend Income
Equipment Operating Leases, LLC	$	18,939	$	—	$	(15,833	)	$	—	$	635		$	3,741	$	749
Kingsbridge Holdings, LLC		80,000		—		—			—		(87	)		80,000		7,402
KBH Topco, LLC (Kingsbridge)		145,996		—		—			—		2,448			148,444		15,225
Loyer Capital LLC		10,725		—		(3,500	)		—		136			7,361		1,003
RD Holdco, Inc. (Rug Doctor, common equity)		—		—		—			—		—			—		—
RD Holdco, Inc. (Rug Doctor, class B)		5,216		—		—			—		(5,216	)		—		—
RD Holdco, Inc. (Rug Doctor, warrants)		—		—		—			—		—			—		—
RD Holdco, Inc. (debt)		11,829		685		—			—		(5,280	)		6,521		(18	)
SLR Business Credit		—		81,583		—			—		7,787			89,370		5,150
SLR Credit Solutions		298,766		—		—			—		(10,006	)		288,760		20,500
SLR Equipment Finance (equity)		129,102		—		—			—		(8,282	)		120,820		—
SLR Equipment Finance (debt)		—		5,000		—			—		—			5,000		379
SLR Healthcare ABL		—		34,335		—			—		15			34,350		2,595
SLR Senior Lending Program LLC		—		9,500		—			—		(74	)		9,426		—
SOAGG LLC		1,121		—		(447	)		—		(674	)		—		647
SOINT, LLC		4,509		266		(942	)		—		(32	)		3,801		266
	$	706,203	$	131,369	$	(20,722	)	$	—	$	(18,630	)	$	797,594	$	53,898

See notes to consolidated financial statements.

14

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2022

(in thousands)

(3) Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the 1940 Act. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of December 31, 2022, on a fair value basis, non-qualifying assets in the portfolio represented 24.2% of the total assets of the Company.

(4) The Company’s investment in SOINT, LLC includes a one dollar investment in common shares.

(5) Kingsbridge Holdings, LLC is held through KBH Topco LLC, a Delaware corporation.

(6) Aggregate net unrealized appreciation for U.S. federal income tax purposes is $17,187; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $161,053 and $143,866, respectively, based on a tax cost of $2,069,489. Unless otherwise noted, all of the Company’s investments are pledged as collateral against the borrowings outstanding on the senior secured credit facility. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated.

(7) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR, SOFR or PRIME rate. These instruments are often subject to a LIBOR, SOFR or PRIME rate floor.

(8) Denotes a Level 1 investment.

(9) SLR Equipment Finance is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC, a wholly-owned consolidated subsidiary.

(10) Indicates an investment that is wholly held by the Company through NEFPASS LLC.

(11) Interest is paid in kind (“PIK”).

(12) Denotes a subsidiary of SLR Equipment Finance.

(13) OmniGuide Holdings, Inc., Domain Surgical, Inc. and OmniGuide, Inc. are co-borrowers.

(14) AmeriMark Interactive, LLC, AmeriMark Direct LLC, AmeriMark Intermediate Sub, Inc., L.T.D. Commodities LLC, Dr. Leonard’s Healthcare Corp. and Amerimark Intermediate Holdings, LLC are each co-Borrowers. Amerimark may elect to defer up to 8.00% of the coupon as PIK.

(15) Spread is 5.75% Cash / 0.50% PIK.

(16) Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SUNS SPV LLC (the “SUNS SPV”). Such investments are pledged as collateral under the Senior Secured Revolving SPV Credit Facility (the “SPV Credit Facility”) (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company.

(17) See note 10 to the consolidated financial statements.

(18) See note 11 to the consolidated financial statements.

(19) See note 13 to the consolidated financial statements.

(20) See note 9 to the consolidated financial statements.

(21) See note 12 to the consolidated financial statements.

(22) BridgeBio Pharma, Inc. may elect to defer up to 3.00% of the coupon as PIK.

(23) OmniGuide Holdings, Inc. may elect to defer up to 10.00% of the coupon as PIK.

(24) Vapotherm, Inc. may elect to defer up to 8.00% of the coupon as PIK.

(25) See note 17 to the consolidated financial statements.

(26) iCIMS, Inc. may elect to defer up to 3.875% of the coupon as PIK.

* Non-income producing security.

** Investment is on non-accrual status.

See notes to consolidated financial statements.

15

SLR INVESTMENT CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

December 31, 2022

(in thousands)

Industry Classification	Percentage of Total Investments (at fair value) as of December 31, 2022
Diversified Financial Services (includes SLR Credit Solutions, SLR Business Credit and SLR Healthcare ABL)		22.1	%
Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment Operating Leases, LLC and Loyer Capital LLC)		17.5	%
Health Care Providers & Services		7.7	%
Health Care Equipment & Supplies		6.6	%
Pharmaceuticals		5.5	%
Software		4.3	%
Insurance		4.2	%
Biotechnology		3.9	%
Diversified Consumer Services		2.7	%
Media		1.9	%
Road & Rail		1.7	%
Personal Products		1.7	%
Capital Markets	��	1.7	%
Thrifts & Mortgage Finance		1.3	%
Life Sciences Tools & Services		1.3	%
Auto Parts & Equipment		1.2	%
Packaged Foods & Meats		1.2	%
Wireless Telecommunication Services		1.1	%
Commercial Services & Supplies		1.1	%
Internet & Catalog Retail		1.1	%
Internet Software & Services		1.0	%
Building Products		0.9	%
Trading Companies & Distributors		0.9	%
Health Care Technology		0.8	%
Transportation Infrastructure		0.7	%
Communications Equipment		0.7	%
IT Services		0.6	%
Leisure Equipment & Products		0.5	%
Specialty Retail		0.5	%
Asset Management		0.5	%
Food Products		0.4	%
Auto Components		0.4	%
Airlines		0.3	%
Hotels, Restaurants & Leisure		0.3	%
Oil, Gas & Consumable Fuels		0.3	%
Aerospace & Defense		0.3	%
Machinery		0.3	%
Footwear		0.3	%
Metals & Mining		0.2	%
Food & Staples Retailing		0.1	%
Water Utilities		0.1	%
Consumer Finance		0.1	%
Construction & Engineering		0.0	%
Energy Equipment & Services		0.0	%
Containers & Packaging		0.0	%
Total Investments		100.0	%

See notes to consolidated financial statements.

16

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

September 30, 2023

(in thousands, except share amounts)

Note 1. Organization

SLR Investment Corp. (the “Company”, “SLRC”, “we”, “us” or “our”), a Maryland corporation formed in November 2007, is a

closed-end,

externally managed,

non-diversified

management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Furthermore, as the Company is an investment company, it continues to apply the guidance in FASB Accounting Standards Codification (“ASC”) Topic 946. In addition, for U.S. federal income tax purposes, the Company has elected to be treated, and intends to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

On February 9, 2010, the Company priced its initial public offering, selling 5.68 million shares of common stock, including the underwriters’ over-allotment, at a price of $18.50 per share. Concurrent with this offering, the Company’s senior management purchased an additional 600,000 shares through a private placement, also at $18.50 per share.

The Company’s investment objective is to maximize both current income and capital appreciation through debt and equity investments. The Company directly and indirectly invests primarily in leveraged middle market companies in the form of senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities. From time to time, we may also invest in public companies that are thinly traded.

On April 1, 2022, we acquired SLR Senior Investment Corp., a Maryland corporation (“SUNS”) pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of December 1, 2021, by and among us, SUNS, Solstice Merger Sub, Inc., a Maryland corporation and our wholly-owned subsidiary (“Merger Sub”), and, solely for the limited purposes set forth therein, SLR Capital Partners, LLC (the “Investment Adviser”). Pursuant to the Merger Agreement, Merger Sub merged with and into SUNS, with SUNS continuing as the surviving company and as SUNS’s wholly-owned subsidiary (the “Merger”) and, immediately thereafter, SUNS merged with and into us, with us continuing as the surviving company (together with the Merger, the “Mergers”). In accordance with the terms of the Merger Agreement, at the effective time of the Merger, each outstanding share of SUNS’s common stock was converted into the right to receive 0.7796 shares of our common stock (with SUNS’s stockholders receiving cash in lieu of fractional shares of our common stock). As a result of the Mergers, we issued an aggregate of 12,511,825 shares of our common stock to former SUNS stockholders.

Note 2. Significant Accounting Policies

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and certain wholly-owned subsidiaries. The consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of the operations and financial condition for the periods presented. All significant intercompany balances and transactions have been eliminated. Certain prior period amounts may have been reclassified to conform to the current period presentation.

Interim consolidated financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form

10-Q

and Regulation

S-X,

as appropriate. Accordingly, they may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending on December 31, 2023.

17

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

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.

The significant accounting policies consistently followed by the Company are:

(a) Investment transactions are accounted for on the trade date;

(b) Under procedures established by the board of directors (the “Board”), we value investments, including certain senior secured debt, subordinated debt and other debt securities with maturities greater than 60 days, for which market quotations are readily available and deemed to represent fair value under GAAP, at such market quotations (unless they are deemed not to represent fair value). A market quotation is readily available for a security only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Company can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. If the Company anticipates using a market quotation for a security, it will also monitor for circumstances that may necessitate the use of fair value, such as significant events that may cause concern over the reliability of a market quotation. We attempt to obtain market quotations from at least two brokers or dealers (if available, otherwise from a principal market maker or a primary market dealer or other independent pricing service). We utilize mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are deemed not to represent fair value, we may utilize independent third-party valuation firms to assist us in determining the fair value of material assets. Accordingly, such investments go through our multi-step valuation process as described below. In each such case, independent valuation firms, that may from time to time be engaged by the Board, consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations. Debt investments with maturities of 60 days or less shall each be valued at cost plus accreted discount, or minus amortized premium, which is expected to approximate fair value, unless such valuation, in the judgment of the Investment Adviser, does not represent fair value, in which case such investments shall be valued at fair value as determined in good faith by or under the direction of the Board. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board. Such determination of fair values involves subjective judgments and estimates.

With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value under GAAP, the Board has approved a multi-step valuation process each quarter, as described below:

(1) our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of the Investment Adviser responsible for the portfolio investment;

(2) preliminary valuation conclusions are then documented and discussed with senior management of the Investment Adviser;

(3) independent valuation firms engaged by the Board conduct independent appraisals and review the Investment Adviser’s preliminary valuations and make their own independent assessment for all material assets;

(4) the audit committee of the Board reviews the preliminary valuation of the Investment Adviser and that of the independent valuation firm and responds to the valuation recommendation of the independent valuation firm, if any, to reflect any comments; and

(5) the Board discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm, if any, and the audit committee.

The valuation principles set forth above may be modified from time to time, in whole or in part, as determined by the Board in its sole discretion. The Board will also (1) periodically assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services, as applicable; (5) oversee the reporting required by Rule

2a-5

under the 1940 Act; and (6) maintain recordkeeping requirements under Rule

2a-5.

18

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. However, in accordance with ASC

820-10,

certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation approaches to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process. For the nine months ended September 30, 2023, there has been no change to the Company’s valuation approaches or techniques and the nature of the related inputs considered in the valuation process.

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

Level

 1

: Unadjusted quoted prices in active markets for identical assets or liabilities, accessible by the Company at the measurement date.

Level

 2

: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level

 3

: Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The exercise of judgment is based in part on our knowledge of the asset class and our prior experience.

(c) Gains or losses on investments are calculated by using the specific identification method.

(d) The Company records dividend income and interest, adjusted for amortization of premium and accretion of discount, on an accrual basis. Loan origination fees, original issue discount, and market discounts are capitalized and we amortize such amounts into income using the effective interest method. Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income. We record call premiums received on loans repaid as interest income when we receive such amounts. Capital structuring fees, amendment fees, consent fees, and any other non-recurring fee income as well as a management fee and other fee income for services rendered, if any, are recorded as other income when earned.

(e) The Company intends to comply with the applicable provisions of the Code pertaining to RICs to make distributions of taxable income sufficient to relieve it of substantially all U.S. federal income taxes. The Company, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. The Company will accrue excise tax on such estimated excess taxable income as appropriate.

(f) Book and tax basis differences relating to stockholder distributions and other permanent book and tax differences are typically reclassified among the Company’s capital accounts annually. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from GAAP.

(g) Distributions to common stockholders are recorded as of the record date. The amount to be paid out as a distribution is determined by the Board. Net realized capital gains, if any, are generally distributed or deemed distributed at least annually.

(h) In accordance with Regulation S-X and ASC Topic 810— Consolidation , the Company consolidates its interest in controlled investment company subsidiaries, financing subsidiaries and certain wholly-owned holding companies that serve to facilitate investment in portfolio companies. In addition, the Company may also consolidate any controlled operating companies substantially all of whose business consists of providing services to the Company.

19

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

(i) The accounting records of the Company are maintained in U.S. dollars. Any assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. The Company will not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations would be included with the net unrealized gain or loss from investments. The Company’s investments in foreign securities, if any, may involve certain risks, including without limitation: foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments in terms of U.S. dollars and therefore the earnings of the Company.

(j) In accordance with ASC 835-30, the Company reports origination and other expenses related to certain debt issuances as a direct deduction from the carrying amount of the debt liability. Applicable expenses are deferred and amortized using either the effective interest method or the straight-line method over the stated life. The straight-line method may be used on revolving facilities and/or when it approximates the effective yield method.

(k) The Company may enter into forward exchange contracts in order to hedge against foreign currency risk. These contracts are marked-to-market by recognizing the difference between the contract exchange rate and the current market rate as unrealized appreciation or depreciation. Realized gains or losses are recognized when contracts are settled.

(l) The Company records expenses related to shelf registration statements and applicable equity offering costs as prepaid assets. These expenses are typically charged as a reduction of capital upon the sale of shares or expensed, in accordance with ASC 946-20-25.

(m) Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when principal or interest cash payments are past due 30 days or more (90 days or more for equipment financing) and/or when it is no longer probable that principal or interest cash payments will be collected. Such non-accrual investments are restored to accrual status if past due principal and interest are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining principal and interest obligations. Cash interest payments received on such investments may be recognized as income or applied to principal depending on management’s judgment.

(n) The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less would qualify, with limited exceptions. The Company believes that certain U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities would qualify as cash equivalents.

20

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Note 3. Agreements

The Company has an investment advisory and management agreement (the “Advisory Agreement”) with the Investment Adviser, under which the Investment Adviser manages the

day-to-day

operations of, and provides investment advisory services to the Company. For providing these services, the Investment Adviser receives a fee from the Company, consisting of two components—a base management fee and a performance-based incentive fee. The base management fee is determined by taking the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters calculated at an annual rate of 1.50% on gross assets up to 200% of the Company’s total net assets as of the immediately preceding quarter end and 1.00% on gross assets that exceed 200% of the Company’s total net assets as of the immediately preceding quarter end. For purposes of computing the base management fee, gross assets exclude temporary assets acquired at the end of each fiscal quarter for purposes of preserving investment flexibility in the next fiscal quarter. Temporary assets include, but are not limited to, U.S. treasury bills, other short-term U.S. government or government agency securities, repurchase agreements or cash borrowings.

The performance-based incentive fee has two parts, as follows: one part is calculated and payable quarterly in arrears based on the Company’s

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 commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement, and any interest expense and distributions paid on any issued and outstanding preferred stock, but excluding the performance-based incentive fee).

Pre-incentive

fee net investment income does not include any realized capital gains or losses, or unrealized capital appreciation or depreciation.

Pre-incentive

fee net investment income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7% annualized). The Company pays the Investment Adviser a performance-based incentive fee with respect to the Company’s

pre-incentive

fee net investment income in each calendar quarter as follows: (1) no performance-based incentive fee in any calendar quarter in which the Company’s

pre-incentive

fee net investment income does not exceed the hurdle rate; (2) 100% of the Company’s

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 2.1875% in any calendar quarter; and (3) 20% of the amount of the Company’s

pre-incentive

fee net investment income, if any, that exceeds 2.1875% in any calendar quarter. These calculations are appropriately

pro-rated

for any period of less than three months.

The second part of the performance-based incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Advisory Agreement, as of the termination date), and will equal 20% of the Company’s cumulative realized capital gains less cumulative realized capital losses, unrealized capital depreciation (unrealized depreciation on a gross

investment-by-investment

basis at the end of each calendar year) and all net capital gains upon which prior performance-based capital gains incentive fee payments were previously made to the Investment Adviser. For financial statement purposes, the second part of the performance-based incentive fee is accrued based upon 20% of cumulative net realized gains and net unrealized capital appreciation. No accrual was required for the three and nine months ended September 30, 2023 and 2022.

For the three and nine months ended September 30, 2023, the Company recognized $8,051 and $23,635, respectively, in base management fees and $5,796 and $16,943, respectively, in performance-based incentive fees. For the three and nine months ended September 30, 2023, $175 and $410, respectively, of such performance-based incentive fees were waived. For the three and nine months ended September 30, 2022, the Company recognized $7,890 and $22,019, respectively, in base management fees and $4,965 and $9,699, respectively, in gross performance-based incentive fees. For the three and nine months ended September 30, 2022, $194 and $1,552 of such performance-based incentive fees were waived. The Investment Adviser has agreed to waive incentive fees resulting from income earned due to the accretion of purchase discount allocated to investments acquired as a result of the Mergers. Fees waived pursuant to the above are not subject to recoupment by the Investment

Adviser.     

The Company has also entered into an Administration Agreement with SLR Capital Management, LLC (the “Administrator”) under which the Administrator provides administrative services to the Company. For providing these services, facilities and personnel, the Company reimburses the Administrator for the Company’s allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent. The Administrator will also provide, on the Company’s behalf, managerial assistance to those portfolio companies to which the Company is required to provide such assistance. The Company typically reimburses the Administrator on a quarterly basis.

For the three and nine months ended September 30, 2023, the Company recognized expenses under the Administration Agreement of $1,575 and $4,563 respectively. For the three and nine months ended September 30, 2022, the Company recognized expenses under the Administration Agreement of $1,132 and $3,684 respectively. No managerial assistance fees were accrued or collected for the three and nine months ended September 30, 2023 and 2022.

21

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Note 4. Net Asset Value Per Share

At September 30, 2023, the Company’s total net assets and net asset value per share were $985,385 and $18.06, respectively. This compares to total net assets and net asset value per share at December 31, 2022 of $999,731 and $18.33, respectively.

Note 5. Earnings Per Share

The following table sets forth the computation of basic and diluted net increase in net assets per share resulting from operations, pursuant to ASC

260-10,

for the three and nine months ended September 30, 2023 and 2022:

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Earnings (loss) per share (basic & diluted)
Numerator—net increase (decrease) in net assets resulting from operations:	$	26,947	$	13,528	$	52,766	$	(655	)
Denominator – weighted average shares:		54,554,634		54,772,651		54,554,639		50,647,874
Earnings (loss) per share:	$	0.49	$	0.25	$	0.97	($	0.01	)

Note 6. Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuations used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level

 1.

 Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access.

Level

 2.

 Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

a) Quoted prices for similar assets or liabilities in active markets;

b) Quoted prices for identical or similar assets or liabilities in non-active markets;

c) Pricing models whose inputs are observable for substantially the full term of the asset or liability; and

d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

Level

 3.

Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s and, if applicable, an independent third-party valuation firm’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3).

Gains and losses for assets and liabilities categorized within the Level 3 table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Such reclassifications involving Level 3 assets and liabilities are reported as transfers in/out of Level 3 as of the end of the quarter in which the reclassifications occur. Within the fair value hierarchy tables below, cash and cash equivalents are excluded but could be classified as Level 1.

22

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

The following tables present the balances of assets measured at fair value on a recurring basis, as of September 30, 2023 and December 31, 2022:

Fair Value Measurements

As of September 30, 2023

	Level 1		Level 2		Level 3		Measured at Net Asset Value*		Total
Assets:
Senior Secured Loans	$	—	$	—	$	1,300,366	$	—	$	1,300,366
Equipment Financing		—		—		265,306		—		265,306
Preferred Equity		—		—		3,801		—		3,801
Common Equity/Equity Interests/Warrants		315		—		571,991		29,277		601,583
Total Investments	$	315	$	—	$	2,141,464	$	29,277	$	2,171,056

Fair Value Measurements

As of December 31, 2022

	Level 1		Level 2		Level 3		Measured at Net Asset Value*		Total
Assets:
Senior Secured Loans	$	—	$	—	$	1,245,414	$	—	$	1,245,414
Equipment Financing		—		—		265,952		—		265,952
Preferred Equity		—		—		3,801		—		3,801
Common Equity/Equity Interests/Warrants		483		—		561,600		9,426		571,509
Total Investments	$	483	$	—	$	2,076,767	$	9,426	$	2,086,676

* In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities. The portfolio investment in this category is SSLP. See Note 17 for more information on this investment, including its investment strategy and the Company’s unfunded equity commitment to SSLP. This investment is not redeemable by the Company absent an election by the members of the entity to liquidate all investments and distribute the proceeds to the members.

23

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

The following tables provide a summary of the changes in fair value of Level 3 assets for the three and nine months ended September 30, 2023, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at September 30, 2023:

Fair Value Measurements Using Level 3 Inputs

	Senior Secured Loans			Equipment Financing			Preferred Equity			Common Equity/ Equity Interests/ Warrants			Total
Fair value, June  30, 2023	$	1,318,512		$	271,333		$	3,801		$	566,427		$	2,160,073
Total gains or losses included in earnings:
Net realized loss		(29,555	)		—			—			—			(29,555	)
Net change in unrealized gain (loss)		41,505			190			(64	)		(7,280	)		34,351
Purchase of investment securities *		168,421			4,190			64			12,895			185,570
Proceeds from dispositions of investment securities		(198,517	)		(10,407	)		—			(51	)		(208,975	)
Transfers in/out of Level 3		—			—			—			—			—
Fair value, September  30, 2023	$	1,300,366		$	265,306		$	3,801		$	571,991		$	2,141,464
Unrealized losses for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
Net change in unrealized gain (loss)	$	9,782		$	190		$	(64)		$	(7,251	)	$	2,657

	Senior Secured Loans			Equipment Financing			Preferred Equity			Common Equity/ Equity Interests/ Warrants			Total
Fair value, December  31, 2022	$	1,245,414		$	265,952		$	3,801		$	561,600		$	2,076,767
Total gains or losses included in earnings:
Net realized loss		(28,398	)		—			—			—			(28,398	)
Net change in unrealized gain (loss)		35,682			111			(187	)		(21,639	)		13,967
Purchase of investment securities *		488,757			34,274			187			32,081			555,299
Proceeds from dispositions of investment securities		(441,089	)		(35,031	)		—			(51	)		(476,171	)
Transfers in/out of Level 3		—			—			—			—			—
Fair value, September  30, 2023	$	1,300,366		$	265,306		$	3,801		$	571,991		$	2,141,464
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
Net change in unrealized gain (loss)	$	29,925		$	111		$	(187	)	$	(21,639	)	$	8,210

* Includes PIK capitalization and accretion of discount

While the Company has not made an election to apply the fair value option of accounting to any of its current debt obligations, if the Company’s debt obligations were carried at fair value at September 30, 2023, the fair value of the Credit Facility, SPV Credit Facility, 2024 Unsecured Notes, 2025 Unsecured Notes, 2026 Unsecured Notes, 2027 Unsecured Notes and 2027 Series F Unsecured Notes would be $521,500, $206,250, $120,313, $80,750, $68,438, $43,375 and $119,138, respectively.

24

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

The following table provides a summary of the changes in fair value of Level 3 assets for the year ended December 31, 2022, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2022:

Fair Value Measurements Using Level 3 Inputs

	Senior Secured Loans			Equipment Financing			Preferred Equity			Common Equity/ Equity Interests/ Warrants			Total
Fair value, December  31, 2021	$	939,690		$	273,795		$	5,630		$	450,381		$	1,669,496
Total gains or losses included in earnings:
Net realized gain (loss)		(36,244	)		—			—			6			(36,238	)
Net change in unrealized loss		(8,065	)		(6,924	)		(706	)		(5,048	)		(20,743	)
Purchase of investment securities(1)		796,389			84,168			266			116,272			997,095
Proceeds from dispositions of investment securities		(446,356	)		(85,087	)		(1,389	)		(11	)		(532,843	)
Transfers in/out of Level 3		—			—			—			—			—
Fair value, December  31, 2022	$	1,245,414		$	265,952		$	3,801		$	561,600		$	2,076,767
Unrealized losses for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
Net change in unrealized loss	$	(8,920	)	$	(6,924	)	$	(706	)	$	(5,048	)	$	(21,598	)

(1) Includes positions acquired from SUNS as a result of the Mergers.

The following table shows a reconciliation of the beginning and ending balances for fair valued liabilities measured using significant unobservable inputs (Level 3) for the year ended December 31, 2022:

2022 Unsecured Notes	For the year ended December 31, 2022
Beginning fair value	$	150,000
Net realized (gain) loss		—
Net change in unrealized (gain) loss		—
Borrowings		—
Repayments		(150,000	)
Transfers in/out of Level 3		—
Ending fair value	$	—

The Company made an election to apply the fair value option of accounting to the 2022 Unsecured Notes, in accordance with ASC

825-10.

On May 8, 2022, the borrowings were repaid in full. While the Company has not made an election to apply the fair value option of accounting to any of its other debt obligations, if the Company’s debt obligations were carried at fair value at December 31, 2022, the fair value of the Credit Facility, SPV Credit Facility, 2023 Unsecured Notes, 2024 Unsecured Notes, 2025 Unsecured Notes, 2026 Unsecured Notes, 2027 Unsecured Notes and 2027 Series F Unsecured Notes would be $393,000, $155,200, $75,000, $118,750, $79,688, $68,250, $42,875 and $118,125, respectively.

25

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Quantitative Information about Level 3 Fair Value Measurements

The Company typically determines the fair value of its performing debt investments utilizing a yield analysis. In a yield analysis, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to current contractual interest rates, relative maturities and other key terms and risks associated with an investment. Among other factors, a significant determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company.

Significant unobservable quantitative inputs typically used in the fair value measurement of the Company’s Level 3 assets and liabilities primarily reflect current market yields, including indices, and readily available quotes from brokers, dealers, and pricing services as indicated by comparable assets and liabilities, as well as enterprise values, returns on equity and earnings before income taxes, depreciation and amortization (“EBITDA”) multiples of similar companies, and comparable market transactions for equity securities.

Quantitative information about the Company’s Level 3 asset and liability fair value measurements as of September 30, 2023 is summarized in the table below:

	Asset or Liability		Fair Value at September 30, 2023		Principal Valuation Technique/Methodology	Unobservable Input	Range (Weighted Average)
Senior Secured Loans		Asset	$ $	1,292,834 7,532	Income Approach Recovery Analysis	Market Yield Recoverable Amount	10.1% -20.5% (12.8%) N/A
Equipment Financing		Asset	$ $	144,486 120,820	Income Approach Market Multiple (1)	Market Yield Comparable Multiple	8.5% -9.5% (9.5%) 1.1x-1.4x (1.2x)
Preferred Equity		Asset	$	3,801	Income Approach	Market Yield	5.0% -5.0% (5.0%)
Common Equity/Equity Interests/Warrants		Asset	$ $	165,771 406,220	Market Multiple (2) Market Approach	Comparable Multiple Return on Equity	6.3x -11.5x (8.8x) 5.5% -30.7% (10.7%)

(1) Includes $120,820 of investments valued using an implied multiple.

(2) Includes $855 of investments valued using a Black-Scholes model and $164,916 of investments valued using an EBITDA multiple.

Quantitative information about the Company’s Level 3 asset and liability fair value measurements as of December 31, 2022 is summarized in the table below:

	Asset or Liability		Fair Value at December 31, 2022		Principal Valuation Technique/Methodology	Unobservable Input	Range (Weighted Average)
Senior Secured Loans		Asset	$ $	1,212,842 32,572	Income Approach Market Multiple (1)	Market Yield Comparable Multiple	9.4% -18.2% (12.0%) 0.1x-21.4x (12.4x)
Equipment Financing		Asset	$ $	145,132 120,820	I ncome Approach Market Multiple (2)	Market Yield Comparable Multiple	8.5% -9.7% (9.7%) 1.1x-1.4x (1.2x)
Preferred Equity		Asset	$	3,801	I ncome Approach	Market Yield	5.0% -5.0% (5.0%)
Common Equity/Equity Interests/Warrants		Asset	$ $	149,120 412,480	Market Multiple (3) Market Approach	Comparable Multiple Return on Equity	7.8x –9.8x (8.8x) 6.6% -35.2% (9.2%)

(1) Investments are valued using a sum-of-the parts analysis, using expected revenue multiples for certain segments of the businesses and expected EBITDA multiples for certain segments of the businesses.

(2) Includes $120,820 of investments valued using an implied multiple.

(3) Includes $676 of investments valued using a Black-Scholes model and $148,444 of investments valued using an EBITDA multiple.

Significan

t increases or decreases in any of the above unobservable inputs in isolation, including unobservable inputs used in deriving

bid-ask

spreads, if applicable, could result in significantly lower or higher fair value measurements for such assets and liabilities. Generally, an increase in market yields or decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Company’s investments.

26

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Note 7. Debt

Our debt obligations consisted of the following as of September 30, 2023 and December 31, 2022:

	September 30, 2023					December 31, 2022
Facility	Face Amount		Carrying Value			Face Amount		Carrying Value
Credit Facility	$	521,500	$	517,582	(1)	$	393,000	$	388,254	(1)
SPV Credit Facility		206,250		205,263	(2)		155,200		154,302	(2)
2023 Unsecured Notes		—		—			75,000		74,979	(3)
2024 Unsecured Notes		125,000		124,637	(4)		125,000		124,421	(4)
2025 Unsecured Notes		85,000		84,738	(5)		85,000		84,613	(5)
2026 Unsecured Notes		75,000		74,586	(6)		75,000		74,498	(6)
2027 Unsecured Notes		50,000		49,963	(7)		50,000		49,953	(7)
2027 Series F Unsecured Notes		135,000		134,985	(8)		135,000		134,978	(8)
	$	1,197,750	$	1,191,754		$	1,093,200	$	1,085,998

(1) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $3,918 and $4,746 as of September 30, 2023 and December 31, 2022, respectively.

(2) Carrying Value equals the Face Amount net of unamortized market discount of $987 and $898 as of September 30, 2023 and December 31, 2022, respectively.

(3) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $21 as of December 31, 2022.

(4) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $363 and $579 as of September 30, 2023 and December 31, 2022, respectively.

(5) Carrying Value equals the Face Amount net of unamortized market discount of $262 and $387 as of September 30, 2023 and December 31, 2022, respectively.

(6) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $414 and $502 as of September 30, 2023 and December 31, 2022, respectively.

(7) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $37 and $47 as of September 30, 2023 and December 31, 2022, respectively.

(8) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $15 and $22 as of September 30, 2023 and December 31, 2022, respectively.

Unsecured Notes

On April 1, 2022, the Company entered into an assumption agreement (the “Note Assumption Agreement”), effective as of the closing of the Mergers. The Note Assumption Agreement relates to the Company’s assumption of $85,000 in aggregate principal amount of five-year, 3.90% senior unsecured notes, due March 31, 2025 (the “2025 Unsecured Notes”) and other obligations of SUNS under the Note Purchase Agreement, dated as of March 31, 2020 (the “Note Purchase Agreement”), among SUNS and certain institutional investors. Interest on the 2025 Unsecured Notes is due semi-annually on March 31 and September 30. Pursuant to the Note Assumption Agreement, the Company expressly assumed on behalf of SUNS the due and punctual payment of the principal of (and premium, if any) and interest on all the 2025 Unsecured Notes outstanding, and the due and punctual performance and observance of every covenant and every condition of the Note Purchase Agreement, to be performed or observed by SUNS.

On January 6, 2022, the Company closed a private offering of $135,000 of the 2027 Series F Unsecured Notes with a fixed interest rate of 3.33% and a maturity date of January 6, 2027. Interest on the 2027 Series F Unsecured Notes is due semi-annually on January 6 and July 6. The 2027 Series F Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On September 14, 2021, the Company closed a private offering of $50,000 of the 2027 Unsecured Notes with a fixed interest rate of 2.95% and a maturity date of March 14, 2027. Interest on the 2027 Unsecured Notes is due semi-annually on March 14 and September 14. The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 18, 2019, the Company closed a private offering of $125,000 of the 2024 Unsecured Notes with a fixed interest rate of 4.20% and a maturity date of December 15, 2024. Interest on the 2024 Unsecured Notes is due semi-annually on June 15 and December 15. The 2024 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

27

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

On December 18, 2019, the Company closed a private offering of $75,000 of the 2026 Unsecured Notes with a fixed interest rate of 4.375% and a maturity date of December 15, 2026. Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15. The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On November 22, 2017, we issued $75,000 in aggregate principal amount of publicly registered 2023 Unsecured Notes for net proceeds of $73,846. Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year, commencing on January 20, 2018. The 2023 Unsecured Notes were repaid in full on the maturity date, January 20, 2023

.     

Revolving and Term Loan Facilities

On April 1, 2022, the Company entered into an assumption agreement (the “CF Assumption Agreement”), effective as of the closing of the Mergers. The CF Assumption Agreement relates to the Company’s assumption of the Revolving Credit Facility, originally entered into on August 26, 2011 (as amended from time to time, the “SPV Credit Facility”), by and among SUNS SPV LLC (the “SUNS SPV”), a wholly-owned subsidiary of SUNS, acting as borrower, Citibank, N.A., acting as administrative agent and collateral agent, and the other parties thereto. Currently, subsequent to an August 29, 2023 amendment, the commitment under the SPV Credit Facility is $275,000; however, the commitment can also be expanded up to $600,000. The stated interest rate on the SPV Credit Facility is SOFR plus

2.00%-2.50%

with no SOFR floor requirement and the current final maturity date is June 1, 2026. The SPV Credit Facility is secured by all of the assets held by SUNS SPV. Under the terms of the SPV Credit Facility and related transaction documents, the Company as successor to SUNS, and SUNS SPV, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SPV Credit Facility also includes usual and customary events of default for credit facilities of this nature. At September 30, 2023, outstanding USD equivalent borrowings under the SPV Credit Facility totaled $206,250.

On December 28, 2021, the Company closed on Amendment No. 1 to its August 28, 2019 senior secured credit agreement (the “Credit Facility”). Following the amendment, a

$25,000 

November 2022 upsizing and 

a $40,000

August 2023 commitment expiration, the Credit Facility is composed of $585,000 of revolving credit and $100,000 of term loans. Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of

1.75%-2.00%

or the alternate base rate plus

0.75%-1.00%.

The Credit Facility has a 0% floor and matures in December 2026 and includes ratable amortization in the final year. The Credit Facility may be increased up to $800,000 with additional new lenders or an increase in commitments from current lenders. The Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Credit Facility contains certain financial covenants that among other things, requires the Company to maintain a minimum shareholder’s equity and a minimum asset coverage ratio. At September 30, 2023, outstanding USD equivalent borrowings under the Credit Facility totaled $521,500, composed of $421,500 of revolving credit and $100,000 of term loans.

Certain covenants on our issued debt may restrict our business activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code.

The average annualized interest cost for all borrowings for the nine months ended September 30, 2023 and the year ended December 31, 2022 was 5.79% and 4.09%, respectively. These costs are exclusive of other credit facility expenses such as unused fees, agency fees and other prepaid expenses related to establishing and/or amending the Credit Facility, the SPV Credit Facility, the 2023 Unsecured Notes, the 2024 Unsecured Notes, the 2025 Unsecured Notes, the 2026 Unsecured Notes, the 2027 Unsecured Notes and the 2027 Series F Unsecured Notes (collectively the “Debt Instruments”), if any. The maximum amounts borrowed on the Debt Instruments during the nine months ended September 30, 2023 and the year ended December 31, 2022 were $1,273,200 and $1,164,200, respectively.

28

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Note 8. Financial Highlights

The following is a schedule of financial highlights for the nine months ended September 30, 2023 and 2022:

	Nine months ended September 30, 2023			Nine months ended September 30, 2022
Per Share Data: (a)
Net asset value, beginning of year	$	18.33		$	19.93
Net investment income		1.25			1.06
Net realized and unrealized loss		(0.29	)		(1.08	)*
Net increase (decrease) in net assets resulting from operations		0.96			(0.02	)
Issuance of common stock in connection with the Mergers		—			(0.31	)
Distributions to stockholders:
From distributable earnings		(1.23	)		(1.06	)
From return of capital		—			(0.17	)
Net asset value, end of period	$	18.06		$	18.37
Per share market value, end of period	$	15.39		$	12.32
Total Return (b)(c)		20.07	%		(27.75	%)
Net assets, end of period	$	985,385		$	1,006,225
Shares outstanding, end of period		54,554,634			54,772,651
Ratios to average net assets (c):
Net investment income		6.90	%		5.51	%
Operating expenses		4.89	%**		3.90	%**
Interest and other credit facility expenses		5.37	%		3.22	%
Total expenses		10.26	%**		7.12	%**
Average debt outstanding	$	1,161,095		$	951,995
Portfolio turnover ratio		22.1	%		13.8	%

(a) Calculated using the average shares outstanding method, except for the issuance of common stock in connection with the Mergers, which reflects the actual amount per share for the applicable period.

(b) Total return is based on the change in market price per share during the period and takes into account distributions, if any, reinvested in accordance with the dividend reinvestment plan. The market price per share as of December 31, 2022 and December 31, 2021 was $13.91 and $18.43, respectively. Total return does not include a sales load.

(c) Not annualized for periods less than one year.

* The amount shown may not correspond with the aggregate amount for the period as it includes the effect of the timing of the Mergers.

** The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets is shown net of the performance-based incentive fee waiver (see note 3). For the nine months ended September 30, 2023, the ratios of operating expenses to average net assets and total expenses to average net assets would be 4.93% and 10.30%, respectively, without the performance-based incentive fee waiver. For the nine months ended September 30, 2022, the ratios of operating expenses to average net assets and total expenses to average net assets would be 4.06% and 7.28%, respectively, without the performance-based incentive fee waiver.

Note 9. SLR Credit Solutions

On December 28, 2012, we acquired an equity interest in Crystal Capital Financial Holdings LLC (“Crystal Financial”) for $275,000 in cash. Crystal Financial owned approximately 98% of the outstanding ownership interest in SLR Credit Solutions (“SLR Credit”), f/k/a Crystal Financial LLC. The remaining financial interest was held by various employees of SLR Credit, through their investment in Crystal Management LP. SLR Credit had a diversified portfolio of 23 loans having a total par value of approximately $400,000 at November 30, 2012 and a $275,000 committed revolving credit facility. On July 28, 2016, the Company purchased Crystal Management LP’s approximately 2% equity interest in SLR Credit for approximately $5,737. Upon the closing of this transaction, the Company holds 100% of the equity interest in SLR Credit. On September 30, 2016, Crystal Capital Financial Holdings LLC was dissolved. As of September 30, 2023, total commitments to the revolving credit facility are $300,000.

As of September 30, 2023 SLR Credit had 32 funded commitments to 28 different issuers with total funded loans of approximately $469,495 on total assets of $506,081. As of December 31, 2022 SLR Credit had 29 funded commitments to 25 different issuers with total funded loans of approximately $439,484 on total assets of $460,683. As of September 30, 2023 and December 31, 2022, the largest loan outstanding totaled $40,725 and $33,420, respectively. For the same periods, the average exposure per issuer was $16,768 and $17,579, respectively. SLR Credit’s credit facility, which is

non-recourse

to the Company, had approximately $284,472 and $224,325 of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively. For the three months ended September 30, 2023 and 2022, SLR Credit had net income of $4,315 and $3,897, respectively, on gross income of $13,897 and $8,596, respectively. For the nine months ended September 30, 2023 and 2022, SLR Credit had net income of $1,411 and $8,557, respectively, on gross income of $42,350 and $22,171, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions.

29

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Note 10. SLR Equipment Finance

On July 31, 2017, we acquired a 100% equity interest in NEF Holdings, LLC, which conducts its business through its wholly-owned subsidiary Nations Equipment Finance, LLC. Effective February 25, 2021, Nations Equipment Finance, LLC and its related companies are doing business as SLR Equipment Finance (“SLR Equipment”). SLR Equipment is an independent equipment finance company that provides senior secured loans and leases primarily to U.S. based companies. We invested $209,866 in cash to effect the transaction, of which $145,000 was invested in the equity of SLR Equipment through our wholly-owned consolidated taxable subsidiary NEFCORP LLC and our wholly-owned consolidated subsidiary NEFPASS LLC and $64,866 was used to purchase certain leases and loans held by SLR Equipment through NEFPASS LLC. Concurrent with the transaction, SLR Equipment refinanced its existing senior secured credit facility into a $150,000

non-recourse

facility with an accordion feature to expand up to $250,000. In September 2019, SLR Equipment amended the facility, increasing commitments to $213,957 with an accordion feature to expand up to $313,957 and extended the maturity date of the facility to July 31, 2023. In June 2023, the facility was amended to extend the maturity date to January 31, 2024, with updated commitments totaling $152,147, effective August 1, 2023.

As of September 30, 2023, SLR Equipment had 141 funded equipment-backed leases and loans to 56 different customers with a total net investment in leases and loans of approximately $199,831 on total assets of $251,031. As of December 31, 2022, SLR Equipment had 131 funded equipment-backed leases and loans to 59 different customers with a total net investment in leases and loans of approximately $190,830 on total assets of $241,813. As of September 30, 2023 and December 31, 2022, the largest position outstanding totaled $18,319 and $19,259, respectively. For the same periods, the average exposure per customer was $3,568 and $3,234, respectively. SLR Equipment’s credit facility, which is

non-recourse

to the Company, had approximately $130,557 and $114,977 of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively. For the three months ended September 30, 2023 and September 30, 2022, SLR Equipment had net income (loss) of ($1,176) and $1,034, respectively, on gross income of $4,783 and $6,486, respectively. For the nine months ended September 30, 2023 and September 30, 2022, SLR Equipment had net loss of $2,193 and $125, respectively, on gross income of $15,174 and $15,704, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions.

Note 11. Kingsbridge Holdings, LLC

On November 3, 2020, the Company acquired 87.5% of the equity securities of Kingsbridge Holdings, LLC (“KBH”) through KBH Topco LLC (“KBHT”), a Delaware corporation. KBH is a residual focused independent

mid-ticket

lessor of equipment primarily to U.S. investment grade companies. The Company invested $216,596 to effect the transaction, of which $136,596 was invested to acquire 87.5% of KBHT’s equity and $80,000 in KBH’s debt. The existing management team of KBH committed to continuing to lead KBH after the transaction. Following the transaction, the Company owns 87.5% of KBHT equity and the KBH management team owns the remaining 12.5% of KBHT’s equity.

As of September 30, 2023 and December 31, 2022, KBHT had total assets of $783,089 and $777,151, respectively. For the same periods, debt recourse to KBHT totaled $239,505 and $222,094, respectively, and

non-recourse

debt totaled $353,415 and $353,128, respectively. None of the debt is recourse to the Company. For the three months ended September 30, 2023 and 2022, KBHT had net income of $2,129 and $3,327, respectively, on gross income of $85,544 and $71,332, respectively. For the nine months ended September 30, 2023 and 2022, KBHT had net income of $7,151 and $10,393, respectively, on gross income of $229,051 and $215,074, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in KBHT’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us.

Note 12. SLR Healthcare ABL

SUNS acquired an equity interest in SLR Healthcare ABL, f/k/a Gemino Healthcare Finance, LLC (“SLR Healthcare”) on September 30, 2013. SLR Healthcare is a commercial finance company that originates, underwrites, and manages primarily secured, asset-based loans for small and

mid-sized

companies operating in the healthcare industry. SUNS initial investment in SLR Healthcare ABL was $32,839. The management team of SLR Healthcare

co-invested

in the transaction and continues to lead SLR Healthcare. As of September 30, 2023, SLR Healthcare’s management team and the Company own approximately 7% and 93% of the equity in SLR Healthcare, respectively. SLRC acquired SLR Healthcare in connection with the Mergers on April 1, 2022. Effective with an amendment dated August 24, 2023, SLR Healthcare has a $150,000

non-recourse

credit facility, which is expandable to $200,000 under its accordion facility. The maturity date of this facility is March 31, 2026.

30

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

SLR Healthcare currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of September 30, 2023, the portfolio totaled approximately $237,000 of commitments with a total net investment in loans of $106,484 on total assets of $113,832. As of December 31, 2022, the portfolio totaled approximately $242,106 of commitments with a total net investment in loans of $92,383 on total assets of $108,705. At September 30, 2023, the portfolio consisted of 38 issuers with an average balance of approximately $2,802 versus 41 issuers with an average balance of approximately $2,253 at December 31, 2022. All of the commitments in SLR Healthcare’s portfolio are floating-rate, senior-secured,

cash-pay

loans. SLR Healthcare’s credit facility, which is

non-recourse

to us, had approximately $81,000 and $77,000 of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively. For the three months ended September 30, 2023 and 2022, SLR Healthcare had net income of $1,532 and $822, respectively, on gross income of $4,833 and $3,020, respectively. For the nine months ended September 30, 2023 and 2022, SLR Healthcare had net income of $3,925 and $2,543, respectively, on gross income of $13,109 and $7,898, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions.

Note 13. SLR Business Credit

SUNS acquired 100% of the equity interests of North Mill Capital LLC (“NMC”) on October 20, 2017. NMC is a leading asset-backed lending commercial finance company that provides senior secured asset-backed financings to U.S. based

small-to-medium-sized

businesses primarily in the manufacturing, services and distribution industries. SUNS invested approximately $51,000 to effect the transaction. Subsequently, SUNS contributed 1% of its equity interest in NMC to ESP SSC Corporation. Immediately thereafter, SUNS and ESP SSC Corporation contributed their equity interests to NorthMill LLC (“North Mill”). On May 1, 2018, North Mill merged with and into NMC, with NMC being the surviving company. SUNS and ESP SSC Corporation then owned 99% and 1% of the equity interests of NMC, respectively. The management team of NMC continues to lead NMC. On June 28, 2019, North Mill Holdco LLC (“NM Holdco”), a newly formed entity and ESP SSC Corporation acquired 100% of Summit Financial Resources, a Salt Lake City-based provider of asset-backed financing to small and

medium-sized

businesses. As part of this transaction, SUNS 99% interest in the equity of NMC was contributed to NM Holdco. This approximately $15,500 transaction was financed with borrowings on NMC’s credit facility. Effective February 25, 2021, NMC and its related companies are doing business as SLR Business Credit. On June 3, 2021, NMC acquired 100% of Fast Pay Partners LLC, a Los Angeles-based provider of asset-backed financing to digital media companies. The transaction purchase price of $66,671 was financed with equity from SUNS of $19,000 and borrowings on NMC’s credit facility of $47,671.

SLR Business Credit currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of September 30, 2023, the portfolio totaled approximately $612,399 of commitments, of which $257,818 were funded, on total assets of $302,912. As of December 31, 2022, the portfolio totaled approximately $603,432 of commitments, of which $286,006 were funded, on total assets of $332,247. At September 30, 2023, the portfolio consisted of 98 issuers with an average balance of approximately $2,631 versus 108 issuers with an average balance of approximately $2,648 at December 31, 2022. NMC has a senior credit facility with a bank lending group for $285,307 which expires on November 13, 2025. Borrowings are secured by substantially all of NMC’s assets. NMC’s credit facility, which is

non-recourse

to us, had approximately $199,449 and $214,425 of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively. For the three months ended September 30, 2023 and 2022, SLR Business Credit had net income of $1,779 and $1,977 respectively, on gross income of $9,709 and $7,607, respectively. For the nine months ended September 30, 2023 and 2022, SLR Business Credit had net income of $5,211 and $5,703 respectively, on gross income of $27,868 and $20,378, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Business Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Business Credit will be able to maintain consistent dividend payments to us.

31

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Note 14. Commitments and Contingencies

Off-Balance

Sheet Arrangements

The Company had unfunded debt and equity commitments to various revolving and delayed-draw term loans as well as to SLR Credit and SLR Healthcare. The total amount of these unfunded commitments as of September 30, 2023 and December 31, 2022 is $367,295 and $364,163, respectively, comprised of the following:

	September 30, 2023		December 31, 2022
SLR Credit Solutions*	$	44,263	$	44,263
Outset Medical, Inc.		35,084		35,084
Apeel Technology, Inc.		32,786		32,786
Southern Orthodontic Partners Management, LLC		21,931		1,918
SLR Senior Lending Program LLC*		21,250		40,500
Orthopedic Care Partners Management, LLC		20,770		1,620
Human Interest, Inc.		20,104		20,104
CVAUSA Management, LLC		18,239		—
BDG Media, Inc.		12,646		3,546
Neuronetics, Inc.		11,579		—
ONS MSO, LLC		10,961		—
iCIMS, Inc.		10,506		11,435
Cerapedics, Inc.		9,217		6,735
Alkeme Intermediate Holdings, LLC		8,531		—
Arcutis Biotherapeutics, Inc.		8,356		8,356
Ardelyx, Inc.		7,752		7,752
West-NR Parent, Inc.		6,830		—
United Digestive MSO Parent, LLC		5,259		—
Peter C. Foy & Associates Insurance Services, LLC		5,062		1,094
Luxury Asset Capital, LLC		4,500		7,500
UVP Management, LLC		4,386		—
Kaseya, Inc.		3,769		3,936
Urology Management Holdings, Inc.		3,596		—
The Townsend Company, LLC		3,556		—
SLR Equipment Finance		3,500		1,000
Vertos Medical, Inc.		3,325		—
Foundation Consumer Brands, LLC		3,009		3,009
Kid Distro Holdings, LLC		2,650		2,650
Maurices, Incorporated		2,589		4,314
Erie Construction Mid-west, LLC		2,403		1,248
Ultimate Baked Goods Midco LLC		2,371		1,636
Basic Fun, Inc.		2,150		2,675
Bayside Opco, LLC		1,721		—
SunMed Group Holdings, LLC		1,621		843
SCP Eye Care, LLC		1,459		2,771
SLR Healthcare ABL*		1,400		1,400
RxSense Holdings LLC		1,250		1,250
Enverus Holdings, Inc.		1,239		1,004
Tilley Distribution, Inc.		1,158		525
GSM Acquisition Corp.		862		784
Composite Technology Acquisition Corp		796		1,537
High Street Buyer, Inc.		631		327
CC SAG Holdings Corp. (Spectrum Automotive)		548		20,670
ENS Holdings III Corp, LLC		461		144
Pinnacle Treatment Centers, Inc.		386		1,745
Vessco Midco Holdings, LLC		327		3,892
TAUC Management, LLC		294		294
All States Ag Parts, LLC		212		135
Glooko, Inc.		—		17,868
World Insurance Associates, LLC		—		17,117
Spectrum Pharmaceuticals, Inc.		—		8,771
Atria Wealth Solutions, Inc.		—		8,215
Accession Risk Management Group, Inc.		—		7,498
Copper River Seafoods, Inc.		—		3,595
Meditrina, Inc.		—		3,367
One Touch Direct, LLC		—		3,069
DeepIntent, Inc.		—		3,049
Plastics Management, LLC		—		2,424
Pediatric Home Respiratory Services, LLC		—		1,805
Ivy Fertility Services, LLC		—		1,571
NAC Holdings Corporation		—		1,479
SPAR Marketing Force, Inc.		—		1,338
Montefiore Nyack Hospital		—		1,034
American Teleconferencing Services, Ltd		—		1,090
BayMark Health Services, Inc.		—		391
Total Commitments	$	367,295	$	364,163

* The Company controls the funding of these commitments and may cancel them at its discretion.

32

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

The credit agreements of the above loan commitments contain customary lending provisions and/or are subject to the respective portfolio company’s achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the financial condition or business outlook for the company. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company. As of September 30, 2023 and December 31, 2022, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment.

Note 15. Capital Share Transactions

As of September 30, 2023 and September 30, 2022, 200,000,000 shares of $0.01 par value capital stock were authorized.

Transactions in capital stock were as follows:

	Shares					Amount
	Three months ended September 30, 2023			Three months ended September 30, 2022		Three months ended September 30, 2023			Three months ended September 30, 2022
Shares issued in connection with the Mergers		—			—	$	—		$	—
Net increase		—			—	$	—		$	—
	Shares					Amount
	Nine months ended September 30, 2023			Nine months ended September 30, 2022		Nine months ended September 30, 2023			Nine months ended September 30, 2022
Shares issued in connection with the Mergers		—			12,511,825	$	—		$	226,839
Shares repurchased		(746	)		—	$	(10	)	$	—
Net increase		(746	)		12,511,825	$	(10	)	$	226,839

Note 16. Stock Repurchase Program

On May 9, 2023, our Board authorized an extension of a program for the purpose of repurchasing up to $50,000 of our outstanding shares of common stock. Under the repurchase program, we may, but are not obligated to, repurchase shares of our outstanding common stock in the open market from time to time provided that we comply with our code of ethics and the guidelines specified in Rule

10b-18

of the Exchange Act, including certain price, market volume and timing constraints. In addition, any repurchases will be conducted in accordance with the 1940 Act. Unless further amended or extended by our Board, we expect the repurchase program to be in place until the earlier of May 10, 2024 or until $50,000 of our outstanding shares of common stock have been repurchased. The timing and number of additional shares to be repurchased will depend on a number of factors, including market conditions. There are no assurances that we will engage in any repurchases beyond what is reported herein. For the nine months ended September 30, 2023, the Company repurchased 746 shares at an average price of approximately $14.02 per share, inclusive of commissions. The total dollar amount of shares repurchased for the nine months ended September 30, 2023 was $10. During the fiscal year ended December 31, 2022, the Company repurchased 217,271 shares at an average price of approximately $13.98 per share, inclusive of commissions. The total dollar amount of shares repurchased for the fiscal year ended December 31, 2022 was $3,038.

33

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Note 17. SLR Senior Lending Program LLC

On October 12, 2022, the Company entered into an amended and restated limited liability company agreement with Sunstone Senior Credit L.P. (the “Investor”) to create a joint venture vehicle, SLR Senior Lending Program LLC (“SSLP”). SSLP is expected to invest primarily in senior secured cash flow loans. The Company and the Investor each have made initial equity commitments of $50,000, resulting in a total equity commitment of $100,000. Investment decisions and all material decisions in respect of SSLP must be approved by representatives of the Company and the Investor.

On December 1, 2022, SSLP commenced operations. On December 12, 2022, SSLP as servicer and SLR Senior Lending Program SPV LLC (“SSLP SPV”), a newly formed wholly owned subsidiary of SSLP, as borrower entered into a $100,000 senior secured revolving credit facility (the “SSLP Facility”) with Goldman Sachs Bank USA acting as administrative agent. The SSLP Facility is scheduled to mature on December 12, 2027. The SSLP Facility generally bears interest at a rate of SOFR plus 3.25%. SSLP and SSLP SPV, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SSLP Facility also includes usual and customary events of default for credit facilities of this nature. At September 30, 2023, there were $79,200 of borrowings outstanding on the SSLP Facility.

As of September 30, 2023, the Company and the Investor had contributed combined equity capital in the amount of $57,500. As of September 30, 2023, the Company and the Investors’ remaining commitments to SSLP totaled $21,250 and $21,250, respectively. The Company, along with the Investor, controls the funding of SSLP and SSLP may not call the unfunded commitments of the Company or the Investor without the approval of both the Company and the Investor.

As of September 30, 2023 and December 31, 2022, SSLP had total assets of $137,447 and $19,105, respectively. For the same periods, SSLP’s portfolio consisted of floating rate senior secured loans to 27 and 7 different borrowers, respectively. For the three months ended September 30, 2023, SSLP invested $57,456 in 16 portfolio companies. Investments prepaid totaled $1,658 for the three months ended September 30, 2023. For the period December 1, 2022 (commencement of operations) through December 31, 2022, SSLP invested $18,100 in 7 portfolio companies. Investments prepaid totaled $68 for the period December 1, 2022 (commencement of operations) through December 31, 2022.

34

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

SSLP Portfolio as of September 30, 2023

Description	Industry	Spread Above Index (1)		Floor			Interest Rate (2)			Maturity Date		Par Amount		Cost		Fair Value (3)
Accession Risk Management Group, Inc. (4)	Insurance		S+550		0.75	%		11.02	%		11/1/26	$	9,078	$	9,078	$	9,078
Aegis Toxicology Sciences Corporation (4)	Health Care Providers & Services		S+550		1.00	%		11.13	%		5/9/25		2,960		2,960		2,960
Alkeme Intermediary Holdings, LLC (4)	Insurance		S+650		1.00	%		11.92	%		10/28/26		3,021		2,931		2,930
All States Ag Parts, LLC (4)	Trading Companies & Distributors		S+600		1.00	%		11.60	%		9/1/26		2,138		2,138		2,138
Atria Wealth Solutions, Inc. (4)	Diversified Financial Services		S+650		1.00	%		12.15	%		2/29/24		2,475		2,475		2,475
BayMark Health Services, Inc. (4)	Health Care Providers & Services		S+500		1.00	%		10.65	%		6/11/27		4,043		4,043		4,043
CC SAG Holdings Corp. (4)	Diversified Consumer Services		S+575		0.75	%		11.18	%		6/29/28		2,992		2,992		2,992
ENS Holdings III Corp. & ES Opco USA LLC (4)	Trading Companies & Distributors		S+475		1.00	%		10.24	%		12/31/25		1,089		1,089		1,089
Fertility (ITC) Investment Holdco, LLC (4)	Health Care Providers & Services		S+650		1.00	%		11.63	%		1/3/29		5,970		5,799		5,970
Foundation Consumer Brands, LLC (4)	Personal Products		S+625		1.00	%		11.77	%		2/12/27		8,911		8,911		8,911
High Street Buyer, Inc. (4)	Insurance		S+600		0.75	%		11.54	%		4/16/28		4,433		4,433		4,433
iCIMS, Inc. (4)	Software		S+725		0.75	%		12.14	%		8/18/28		3,059		3,028		3,059
Kaseya, Inc. (4)	Software		S+625		0.75	%		11.58	%		6/23/29		9,000		9,000		9,000
Kid Distro Holdings, LLC (4)	Software		S+550		1.00	%		11.04	%		10/1/27		8,962		8,962		8,962
ONS MSO, LLC (4)	Health Care Providers & Services		S+625		1.00	%		11.62	%		7/8/25		5,936		5,779		5,936
PhyNet Dermatology LLC (4)	Health Care Providers & Services		S+625		1.00	%		11.45	%		8/16/24		5,964		5,964		5,964
Pinnacle Treatment Centers, Inc. (4)	Health Care Providers & Services		S+675		1.00	%		12.10	%		1/2/26		4,725		4,725		4,725
Plastics Management, LLC (4)	Health Care Providers & Services		S+500		1.00	%		10.44	%		8/18/27		5,651		5,476		5,651
RQM+ Corp. (4)	Life Sciences Tools & Services		S+575		1.00	%		11.40	%		8/12/26		5,970		5,970		5,970
RxSense Holdings LLC (4)	Diversified Consumer Services		S+500		1.00	%		10.47	%		3/13/26		2,977		2,977		2,977
SunMed Group Holdings, LLC (4)	Health Care Equipment & Supplies		S+550		0.75	%		10.99	%		6/16/28		8,971		8,971		8,971
The Townsend Company, LLC (4)	Commercial Services & Supplies		S+625		1.00	%		11.57	%		8/15/29		3,570		3,482		3,481
Tilley Distribution, Inc. (4)	Trading Companies & Distributors		S+600		1.00	%		11.54	%		12/31/26		5,963		5,963		5,963
Ultimate Baked Goods Midco LLC (4)	Packaged Foods & Meats		S+625		1.00	%		11.67	%		8/13/27		8,977		8,977		8,977
Urology Management Holdings, Inc. (4)	Health Care Providers & Services		S+625		1.00	%		11.79	%		6/15/26		2,465		2,403		2,440
Vessco Midco Holdings, LLC (4)	Water Utilities		S+450		1.00	%		9.92	%		11/2/26		1,845		1,845		1,845
West-NR Parent, Inc. (4)	Insurance		S+625		1.00	%		11.72	%		12/27/27		2,674		2,622		2,621
														$	132,993	$	133,561

(1) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR. These instruments are typically subject to a SOFR floor.

(2) Floating rate debt investments typically bear interest at a rate determined by reference to the SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current interest rate in effect as of September 30, 2023.

(3) Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein.

(4) The Company also holds this security on its Consolidated Statements of Assets and Liabilities.

35

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

SSLP Portfolio as of December 31, 2022

Description	Industry	Spread Above Index (1)		Floor			Interest Rate (2)			Maturity Date		Par Amount		Cost		Fair Value (3)
Atria Wealth Solutions, Inc. (4)	Diversified Financial Services		S+600		1.00	%		10.84	%		2/29/24	$	2,494	$	2,494	$	2,494
BayMark Health Services, Inc. (4)	Health Care Providers & Services		L+500		1.00	%		9.73	%		6/11/27		2,992		2,992		2,992
ENS Holdings III Corp. & ES Opco USA LLC (4)	Trading Companies & Distributors		L+475		1.00	%		9.43	%		12/31/25		1,097		1,097		1,097
Foundation Consumer Brands, LLC (4)	Personal Products		L+550		1.00	%		10.15	%		2/12/27		2,963		2,963		2,963
High Street Buyer, Inc. (4)	Insurance		L+600		0.75	%		10.73	%		4/16/28		2,494		2,494		2,494
Ivy Fertility Services, LLC (4)	Health Care Providers & Services		L+625		1.00	%		10.39	%		2/25/26		3,000		3,000		3,030
Kid Distro Holdings, LLC (4)	Software		L+575		1.00	%		10.48	%		10/1/27		2,992		2,992		2,992
														$	18,032	$	18,062

(1) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or SOFR. These instruments are typically subject to a LIBOR or SOFR floor.

(2) Floating rate debt investments typically bear interest at a rate determined by reference to either the LIBOR (“L”) or SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current interest rate in effect as of December 31, 2022.

(3) Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein.

(4) The Company also holds this security on its Consolidated Statements of Assets and Liabilities.

Below is certain summarized financial information for SSLP as of September 30, 2023 and December 31, 2022 and for the three and nine months ended September 30, 2023 and for the period December 1, 2022 (commencement of operations) through December 31, 2022:

	September 30, 2023		December 31, 2022
Selected Balance Sheet Information for SSLP:
Investments at fair value (cost $132,993 and $18,032, respectively)	$	133,561	$	18,062
Cash and other assets		3,886		1,043
Total assets	$	137,447	$	19,105
Debt outstanding	$	77,826	$	—
Distributions payable		500		—
Interest payable and other credit facility related expenses		358		165
Accrued expenses and other payables		209		89
Total liabilities	$	78,893	$	254
Members’ equity	$	58,554	$	18,851
Total liabilities and members’ equity	$	137,447	$	19,105

36

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

	For the three months ended September 30, 2023		For the nine months ended September 30, 2023		For the period December 1, 2022 (commencement of operations) to December 31, 2022
Selected Income Statement Information for SSLP:
Interest income	$	2,757	$	5,371	$	152
Service fees*		66		123	$	4
Interest and other credit facility expenses		1,773		4,025		166
Organizational costs		—		—		73
Other general and administrative expenses		32		89		88
Total expenses		1,871		4,237		331
Net investment income (loss)	$	886	$	1,134	$	(179	)
Realized gain on investments		—		30		—
Net change in unrealized gain on investments		177		538		30
Net realized and unrealized gain on investments	$	177	$	568		30
Net income (loss)	$	1,063	$	1,702	$	(149	)

* Service fees are included within the Company’s Consolidated Statements of Operations as other income.

Note 18. Subsequent Events

The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued.

On November 7, 2023, the Board declared a quarterly distribution of $0.41 per share payable on December 28, 2023 to holders of record as of December 14, 2023.

37

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

SLR Investment Corp.:

Results of Review of Interim Financial Information

We have reviewed the consolidated statement of assets and liabilities of SLR Investment Corp. (and subsidiaries) (the Company), including the consolidated schedule of investments, as of September 30, 2023, the related consolidated statements of operations and changes in net assets, for the three-month and nine-month periods ended September 30, 2023 and 2022, the related consolidated statements of cash flows for the nine-month periods ended September 30, 2023 and 2022, and the related notes (collectively, the consolidated interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S. generally accepted accounting principles.

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, including the consolidated schedule of investments, of the Company as of December 31, 2022, 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 February 28, 2023, 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, including the consolidated schedule of investments, as of December 31, 2022, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities, including the consolidated schedule of investments, from which it has been derived.

Basis for Review Results

This consolidated interim financial information is the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with the standards of the PCAOB. A review of consolidated 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.

/s/ KPMG LLP

New York, New York

November 7, 2023

38

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

The information contained in this section should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.

Some of the statements in this report constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained herein involve risks and uncertainties, including statements as to:

• our future operating results, including our ability to achieve objectives;

• our business prospects and the prospects of our portfolio companies;

• the impact of investments that we expect to make;

• our contractual arrangements and relationships with third parties;

• the dependence of our future success on the general economy and its impact on the industries in which we invest;

• the impact of any protracted decline in the liquidity of credit markets on our business;

• the ability of our portfolio companies to achieve their objectives;

• the valuation of our investments in portfolio companies, particularly those having no liquid trading market;

• market conditions and our ability to access alternative debt markets and additional debt and equity capital;

• our expected financings and investments;

• the adequacy of our cash resources and working capital;

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

• the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments;

• the ability of the Investment Adviser to attract and retain highly talented professionals;

• the ability of the Investment Adviser to adequately allocate investment opportunities among the Company and its other advisory clients;

• any conflicts of interest posed by the structure of the management fee and incentive fee to be paid to the Investment Adviser;

• changes in political, economic or industry conditions, relations between the United States, Russia, Ukraine and other nations, the interest rate environment or conditions affecting the financial and capital markets;

• the escalating conflict in the Middle East;

• changes in the general economy, slowing economy, rising inflation, risk of recession and risks in respect of a failure to increase the U.S. debt ceiling; and

• our ability to anticipate and identify evolving market expectations with respect to environmental, social and governance matters, including the environmental impacts of our portfolio companies’ supply chains and operations.

These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

• an economic downturn could impair our portfolio companies’ ability to continue to operate, which could lead to the loss of some or all of our investments in such portfolio companies;

• a contraction of available credit and/or an inability to access the equity markets could impair our lending and investment activities;

• interest rate volatility could adversely affect our results, particularly because we use leverage as part of our investment strategy;

• currency fluctuations could adversely affect the results of our investments in foreign companies, particularly to the extent that we receive payments denominated in foreign currency rather than U.S. dollars;

• the risks, uncertainties and other factors we identify in Item 1A. —   Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2022, elsewhere in this Quarterly Report on Form 10-Q and in our other filings with the SEC.

We generally use words such as “anticipates,” “believes,” “expects,” “intends” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason, including any factors set forth in “Risk Factors” and elsewhere in this report.

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, 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 any annual reports on Form

10-K,

quarterly reports on Form

10-Q

and current reports on Form

8-K.

39

Overview

SLR Investment Corp. (the “Company”, “SLRC”, “we” or “our”), a Maryland corporation formed in November 2007, is a

closed-end,

externally managed,

non-diversified

management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Furthermore, as the Company is an investment company, it continues to apply the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. In addition, for U.S federal income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

On February 9, 2010, we priced our initial public offering, selling 5.68 million shares of our common stock. Concurrent with our initial public offering, Michael S. Gross, our Chairman,

Co-Chief

Executive Officer and President, and Bruce Spohler, our

Co-Chief

Executive Officer and Chief Operating Officer, collectively purchased an additional 0.6 million shares of our common stock through a private placement transaction exempt from registration under the Securities Act of 1933, as amended.

We invest primarily in privately held U.S. middle-market companies, where we believe the supply of primary capital is limited and the investment opportunities are most attractive. Our investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in leveraged middle-market companies in the form of senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities. From time to time, we may also invest in public companies that are thinly traded. Our business is focused primarily on the direct origination of investments through portfolio companies or their financial sponsors. Our investments generally range between $5 million and $100 million each, although we expect that this investment size will vary proportionately with the size of our capital base and/or with strategic initiatives. Our investment activities are managed by SLR Capital Partners, LLC (the “Investment Adviser”) and supervised by the board of directors (the “Board)”, a majority of whom are

non-interested,

as such term is defined in the 1940 Act. SLR Capital Management, LLC (the “Administrator”) provides the administrative services necessary for us to operate.

In addition, we may invest a portion of our portfolio in other types of investments, which we refer to as opportunistic investments, which are not our primary focus but are intended to enhance our overall returns. These investments may include, but are not limited to, direct investments in public companies that are not thinly traded and securities of leveraged companies located in select countries outside of the United States.

Recent Developments

On November 7, 2023, the Board declared a quarterly distribution of $0.41 per share payable on December 28, 2023 to holders of record as of December 14, 2023.

Investments

Our level of investment activity can and does vary substantially from period to period depending 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. As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” The definition of “eligible portfolio company” includes certain public companies that do not have any securities listed on a national securities exchange and companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million.

Revenue

We generate revenue primarily in the form of interest and dividend income from the securities we hold and capital gains, if any, on investment securities that we may sell. Our debt investments generally have a stated term of three to seven years and typically bear interest at a floating rate usually determined on the basis of a benchmark London interbank offered rate (“LIBOR”), the Secured Overnight Financing Rate (“SOFR”), commercial paper rate, or the prime rate. Interest on our debt investments is generally payable monthly or quarterly but may be

bi-monthly

or semi-annually. In addition, our investments may provide

payment-in-kind

(“PIK”) income. Such amounts of accrued PIK income are added to the cost of the investment on the respective capitalization dates and generally become due at maturity of the investment or upon the investment being called by the issuer. We may also generate revenue in the form of commitment, origination, structuring fees, fees for providing managerial assistance and, if applicable, consulting fees, etc.

40

Expenses

All investment professionals of the investment adviser and their respective staffs, when and to the extent engaged in providing investment advisory and management services, and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by the Investment Adviser. We bear all other costs and expenses of our operations and transactions, including (without limitation):

• the cost of our organization and public offerings;

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

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

• interest payable on debt, if any, to finance our investments;

• fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence reviews of prospective investments and advisory fees;

• transfer agent and custodial fees;

• fees and expenses associated with marketing efforts;

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

• federal, state and local taxes;

• independent directors’ fees and expenses;

• brokerage commissions;

• fidelity bond, directors and officers errors and omissions liability insurance and other insurance premiums;

• direct costs and expenses of administration, including printing, mailing, long distance telephone and staff;

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

• costs associated with our reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws; and

• all other expenses incurred by either SLR Capital Management or us in connection with administering our business, including payments under the Administration Agreement that will be based upon our allocable portion of overhead and other expenses incurred by SLR Capital Management in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions, and our allocable portion of the costs of compensation and related expenses of our chief compliance officer and our chief financial officer and their respective staffs.

We expect our general and administrative operating expenses related to our ongoing operations to increase moderately in dollar terms. During periods of asset growth, we generally expect our general and administrative operating expenses to decline as a percentage of our total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities, among others, may also increase or reduce overall operating expenses based on portfolio performance, interest rate benchmarks, and offerings of our securities relative to comparative periods, among other factors.

Portfolio and Investment Activity

During the three months ended September 30, 2023, we invested approximately $187.4 million across 35 portfolio companies. This compares to investing approximately $245.4 million in 44 portfolio companies for the three months ended September 30, 2022. Investments sold, prepaid or repaid during the three months ended September 30, 2023 totaled approximately $205.6 million versus approximately $81.1 million for the three months ended September 30, 2022.

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At September 30, 2023, our portfolio consisted of 154 portfolio companies and was invested 37.1% in cash flow senior secured loans, 25.2% in asset-based senior secured loans / SLR Credit Solutions (“SLR Credit”) / SLR Healthcare ABL / SLR Business Credit, 22.6% in equipment senior secured financings / SLR Equipment Finance (“SLR Equipment”) / Kingsbridge Holdings, LLC (“KBH”) and 15.1% in life science senior secured loans, in each case, measured at fair value, versus 135 portfolio companies invested 30.2% in cash flow senior secured loans, 31.9% in asset-based senior secured loans / SLR Credit, 21.6% in equipment senior secured financings / SLR Equipment / KBH, and 16.3% in life science senior secured loans, in each case, measured at fair value, at September 30, 2022.

At September 30, 2023, 78.4% or $1.68 billion of our income producing investment portfolio

*

is floating rate and 21.6% or $462.1 million is fixed rate, measured at fair value. At September 30, 2022, 79.7% or $1.71 billion of our income producing investment portfolio

*

is floating rate and 20.3% or $434.9 million is fixed rate, measured at fair value. As of September 30, 2023 and 2022, we had two and two issuers, respectively, on

non-accrual

status.

*  We have included SLR Credit Solutions, SLR Equipment Finance, SLR Healthcare ABL, SLR Business Credit and Kingsbridge Holdings, LLC within our income producing investment portfolio.

SLR Credit Solutions

On December 28, 2012, we acquired an equity interest in Crystal Capital Financial Holdings LLC (“Crystal Financial”) for $275 million in cash. Crystal Financial owned approximately 98% of the outstanding ownership interest in SLR Credit Solutions (“SLR Credit”), f/k/a Crystal Financial LLC. The remaining financial interest was held by various employees of SLR Credit, through their investment in Crystal Management LP. SLR Credit had a diversified portfolio of 23 loans having a total par value of approximately $400 million at November 30, 2012 and a $275 million committed revolving credit facility. On July 28, 2016, the Company purchased Crystal Management LP’s approximately 2% equity interest in SLR Credit for approximately $5.7 million. Upon the closing of this transaction, the Company holds 100% of the equity interest in SLR Credit. On September 30, 2016, Crystal Capital Financial Holdings LLC was dissolved. As of September 30, 2023, total commitments to the revolving credit facility are $300 million.

As of September 30, 2023, SLR Credit had 32 funded commitments to 28 different issuers with total funded loans of approximately $469.5 million on total assets of $506.1 million. As of December 31, 2022, SLR Credit had 29 funded commitments to 25 different issuers with total funded loans of approximately $439.5 million on total assets of $460.7 million. As of September 30, 2023 and December 31, 2022, the largest loan outstanding totaled $40.7 million and $33.4 million, respectively. For the same periods, the average exposure per issuer was $16.8 million and $17.6 million, respectively. SLR Credit’s credit facility, which is

non-recourse

to the Company, had approximately $284.5 million and $224.3 million of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively. For the three months ended September 30, 2023 and 2022, SLR Credit had net income of $4.3 million and $3.9 million, respectively, on gross income of $13.9 million and $8.6 million, respectively. For the nine months ended September 30, 2023 and 2022, SLR Credit had net income of $1.4 million and $8.6 million, respectively, on gross income of $42.4 million and $22.2 million, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Credit will be able to maintain consistent dividend payments to us.

SLR Equipment Finance

On July 31, 2017, we acquired a 100% equity interest in NEF Holdings, LLC, which conducts its business through its wholly-owned subsidiary Nations Equipment Finance, LLC. Effective February 25, 2021, Nations Equipment Finance, LLC and its related companies are doing business as SLR Equipment Finance (“SLR Equipment”). SLR Equipment is an independent equipment finance company that provides senior secured loans and leases primarily to U.S. based companies. We invested $209.9 million in cash to effect the transaction, of which $145.0 million was invested in the equity of SLR Equipment through our wholly-owned consolidated taxable subsidiary NEFCORP LLC and our wholly-owned consolidated subsidiary NEFPASS LLC and $64.9 million was used to purchase certain leases and loans held by SLR Equipment through NEFPASS LLC. Concurrent with the transaction, SLR Equipment refinanced its existing senior secured credit facility into a $150.0 million

non-recourse

facility with an accordion feature to expand up to $250.0 million. In September 2019, SLR Equipment amended the facility, increasing commitments to $214.0 million with an accordion feature to expand up to $314.0, million and extended the maturity date of the facility to July 31, 2023. In June 2023, the facility was amended to extend the maturity date to January 31, 2024, with updated commitments totaling $152.1 million, effective August 1, 2023.

As of September 30, 2023, SLR Equipment had 141 funded equipment-backed leases and loans to 56 different customers with a total net investment in leases and loans of approximately $199.8 million on total assets of $251.0 million. As of December 31, 2022, SLR Equipment had 131 funded equipment-backed leases and loans to 59 different customers with a total net investment in leases and loans of approximately $190.8 million on total assets of $241.8 million. As of September 30, 2023 and December 31, 2022, the largest position outstanding totaled $18.3 million and $19.3 million, respectively. For the same periods, the average exposure per customer was $3.6 million and $3.2 million, respectively. SLR Equipment’s credit facility, which is

non-recourse

to the Company, had approximately $130.6 million and $115.0 million of borrowings outstanding at September 30, 2023 and December 31, 2022,

42

respectively. For the three months ended September 30, 2023 and 2022, SLR Equipment had net income (loss) of ($1.2) million and $1.0 million, respectively, on gross income of $4.8 million and $6.5 million, respectively. For the nine months ended September 30, 2023 and 2022, SLR Equipment had net loss of $2.2 million and $0.1 million, respectively, on gross income of $15.2 million and $15.7 million, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Equipment’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Equipment will be able to maintain consistent dividend payments to us.

Kingsbridge Holdings, LLC

On November 3, 2020, the Company acquired 87.5% of the equity securities of Kingsbridge Holdings, LLC (“KBH”) through KBH Topco LLC (“KBHT”), a Delaware corporation. KBH is a residual focused independent

mid-ticket

lessor of equipment primarily to U.S. investment grade companies. The Company invested $216.6 million to effect the transaction, of which $136.6 million was invested to acquire 87.5% of KBHT’s equity and $80.0 million in KBH’s debt. The existing management team of KBH committed to continuing to lead KBH after the transaction. Following the transaction, the Company owns 87.5% of KBHT equity and the KBH management team owns the remaining 12.5% of KBHT’s equity.

As of September 30, 2023 and December 31, 2022, KBHT had total assets of $783.1 million and $777.2 million, respectively. For the same periods, debt recourse to KBHT totaled $239.5 million and $222.1 million, respectively, and

non-recourse

debt totaled $353.4 million and $353.1 million, respectively. None of the debt is recourse to the Company. For the three months ended September 30, 2023 and 2022, KBHT had net income of $2.1 million and $3.3 million, respectively, on gross income of $85.5 million and $71.3 million, respectively. For the nine months ended September 30, 2023 and 2022, KBHT had net income of $7.2 million and $10.4 million, respectively, on gross income of $229.1 million and $215.1 million, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in KBHT’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us.

SLR Healthcare ABL

SUNS acquired an equity interest in SLR Healthcare ABL, f/k/a Gemino Healthcare Finance, LLC (“SLR Healthcare”) on September 30, 2013. SLR Healthcare is a commercial finance company that originates, underwrites, and manages primarily secured, asset-based loans for small and

mid-sized

companies operating in the healthcare industry. SUNS initial investment in SLR Healthcare ABL was $32.8 million. The management team of SLR Healthcare

co-invested

in the transaction and continues to lead SLR Healthcare. As of September 30, 2023, SLR Healthcare’s management team and the Company own approximately 7% and 93% of the equity in SLR Healthcare, respectively. SLRC acquired SLR Healthcare in connection with the Mergers on April 1, 2022. Effective with an amendment dated August 24, 2023, SLR Healthcare has a $150 million

non-recourse

credit facility, which is expandable to $200 million under its accordion facility. The maturity date of this facility is March 31, 2026.

SLR Healthcare currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of September 30, 2023, the portfolio totaled approximately $237.0 million of commitments with a total net investment in loans of $106.5 million on total assets of $113.8 million. As of December 31, 2022, the portfolio totaled approximately $242.1 million of commitments with a total net investment in loans of $92.4 million on total assets of $108.7 million. At September 30, 2023, the portfolio consisted of 38 issuers with an average balance of approximately $2.8 million versus 41 issuers with an average balance of approximately $2.3 million at December 31, 2022. All of the commitments in SLR Healthcare’s portfolio are floating-rate, senior-secured,

cash-pay

loans. SLR Healthcare’s credit facility, which is

non-recourse

to us, had approximately $81.0 million and $77.0 million of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively. For the three months ended September 30, 2023 and 2022, SLR Healthcare had net income of $1.5 million and $0.8 million, respectively, on gross income of $4.8 million and $3.0 million, respectively. For the nine months ended September 30, 2023 and 2022, SLR Healthcare had net income of $3.9 million and $2.5 million, respectively, on gross income of $13.1 million and $7.9 million, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Healthcare’s funded commitments, the timing of originations, and the repayment of financings, the Company cannot guarantee that SLR Healthcare will be able to maintain consistent dividend payments to us.

SLR Business Credit

SUNS acquired 100% of the equity interests of North Mill Capital LLC (“NMC”) on October 20, 2017. NMC is a leading asset-backed lending commercial finance company that provides senior secured asset-backed financings to U.S. based small-to-medium-sized businesses primarily in the manufacturing, services and distribution industries. SUNS invested approximately $51.0 million to effect the transaction. Subsequently, SUNS contributed 1% of its equity interest in NMC to ESP SSC Corporation.     

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Immediately thereafter, SUNS and ESP SSC Corporation contributed their equity interests to NorthMill LLC (“North Mill”). On May 1, 2018, North Mill merged with and into NMC, with NMC being the surviving company. SUNS and ESP SSC Corporation then owned 99% and 1% of the equity interests of NMC, respectively. The management team of NMC continues to lead NMC. On June 28, 2019, North Mill Holdco LLC (“NM Holdco”), a newly formed entity and ESP SSC Corporation acquired 100% of Summit Financial Resources, a Salt Lake City-based provider of asset-backed financing to small and

medium-sized

businesses. As part of this transaction, SUNS 99% interest in the equity of NMC was contributed to NM Holdco. This approximately $15.5 million transaction was financed with borrowings on NMC’s credit facility. Effective February 25, 2021, NMC and its related companies are doing business as SLR Business Credit. On June 3, 2021, NMC acquired 100% of Fast Pay Partners LLC, a Los Angeles-based provider of asset-backed financing to digital media companies. The transaction purchase price of $66.7 million was financed with equity from SUNS of $19.0 million and borrowings on NMC’s credit facility of $47.7 million.

SLR Business Credit currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of September 30, 2023, the portfolio totaled approximately $612.4 million of commitments, of which $257.8 million were funded, on total assets of $302.9 million. As of December 31, 2022, the portfolio totaled approximately $603.4 million of commitments, of which $286.0 million were funded, on total assets of $332.2 million. At September 30, 2023, the portfolio consisted of 98 issuers with an average balance of approximately $2.6 million versus 108 issuers with an average balance of approximately $2.6 million at December 31, 2022. NMC has a senior credit facility with a bank lending group for $285.3 million, which expires on November 13, 2025. Borrowings are secured by substantially all of NMC’s assets. NMC’s credit facility, which is

non-recourse

to us, had approximately $199.4 million and $214.4 million of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively. For the three months ended September 30, 2023 and 2022, SLR Business Credit had net income of $1.8 million and $2.0 million, respectively, on gross income of $9.7 million and $7.6 million, respectively. For the nine months ended September 30, 2023 and 2022, SLR Business Credit had net income of $5.2 million and $5.7 million, respectively, on gross income of $27.9 million and $20.4 million, respectively. Due to timing and

non-cash

items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Business Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Business Credit will be able to maintain consistent dividend payments to us.

Stock Repurchase Program

On May 9, 2023, our Board authorized an extension of a program for the purpose of repurchasing up to $50 million of our outstanding shares of common stock. Under the repurchase program, we may, but are not obligated to, repurchase shares of our outstanding common stock in the open market from time to time provided that we comply with our code of ethics and the guidelines specified in Rule

10b-18

of the Exchange Act, including certain price, market volume and timing constraints. In addition, any repurchases will be conducted in accordance with the 1940 Act. Unless further amended or extended by our Board, we expect the repurchase program to be in place until the earlier of May 10, 2024 or until $50 million of our outstanding shares of common stock have been repurchased. The timing and number of additional shares to be repurchased will depend on a number of factors, including market conditions. There are no assurances that we will engage in any repurchases beyond what is reported herein. For the nine months ended September 30, 2023, the Company repurchased 746 shares at an average price of approximately $14.02 per share, inclusive of commissions. The total dollar amount of shares repurchased for the nine months ended September 30, 2023 was $0.01 million. During the fiscal year ended December 31, 2022, the Company repurchased 217,271 shares at an average price of approximately $13.98 per share, inclusive of commissions. The total dollar amount of shares repurchased for the fiscal year ended December 31, 2022 was $3.0 million.

SLR Senior Lending Program LLC

On October 12, 2022, the Company entered into an amended and restated limited liability company agreement with Sunstone Senior Credit L.P. (the “Investor”) to create a joint venture vehicle, SLR Senior Lending Program LLC (“SSLP”). SSLP is expected to invest primarily in senior secured cash flow loans. The Company and the Investor each have made initial equity commitments of $50 million, resulting in a total equity commitment of $100 million. Investment decisions and all material decisions in respect of SSLP must be approved by representatives of the Company and the Investor.

On December 1, 2022, SSLP commenced operations. On December 12, 2022, SSLP as servicer and SLR Senior Lending Program SPV LLC (“SSLP SPV”), a newly formed wholly owned subsidiary of SSLP, as borrower entered into a $100 million senior secured revolving credit facility (the “SSLP Facility”) with Goldman Sachs Bank USA acting as administrative agent. The SSLP Facility is scheduled to mature on December 12, 2027. The SSLP Facility generally bears interest at a rate of SOFR plus 3.25%. SSLP and SSLP SPV, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SSLP Facility also includes usual and customary events of default for credit facilities of this nature. At September 30, 2023, there were $79.2 million of borrowings outstanding on the SSLP Facility.

44

As of September 30, 2023 the Company and the Investor had contributed combined equity capital in the amount of $57.5 million. As of September 30, 2023, the Company and the Investor’s remaining commitments to SSLP totaled $21.25 million and $21.25 million, respectively. The Company, along with the Investor, controls the funding of SSLP, and SSLP may not call the unfunded commitments of the Company or the Investor without approval of both the Company and the Investor.

As of September 30, 2023 and December 31, 2022, SSLP had total assets of $137.4 million and $19.1 million, respectively. For the same periods, SSLP’s portfolio consisted of floating rate senior secured loans to 27 and 7 different borrowers, respectively. For the three months ended September 30, 2023, SSLP invested $57.5 million in 16 portfolio companies. Investments prepaid totaled $1.7 million for the three months ended September 30, 2023. For the period December 1, 2022 (commencement of operations) through December 31, 2022, SSLP invested $18.1 million in 7 portfolio companies. Investments prepaid totaled $0.1 million for the period December 1, 2022 (commencement of operations) through December 31, 2022.

SSLP Portfolio as of September 30, 2023 (dollar amounts in thousands)

Description	Industry	Spread Above Index (1)		Floor			Interest Rate (2)			Maturity Date		Par Amount		Cost			Fair Value (3)
Accession Risk Management Group, Inc. (4)	Insurance		S+550		0.75	%		11.02	%		11/1/26	$	9,078	$	9,078		$	9,078
Aegis Toxicology Sciences Corporation (4)	Health Care Providers & Services		S+550		1.00	%		11.13	%		5/9/25		2,960		2,960			2,960
Alkeme Intermediary Holdings, LLC (4)	Insurance		S+650		1.00	%		11.92	%		10/28/26		3,021		2,931			2,930
All States Ag Parts, LLC (4)	Trading Companies & Distributors		S+600		1.00	%		11.60	%		9/1/26		2,138		2,138			2,138
Atria Wealth Solutions, Inc. (4)	Diversified Financial Services		S+650		1.00	%		12.15	%		2/29/24		2,475		2,475			2,475
BayMark Health Services, Inc. (4)	Health Care Providers & Services		S+500		1.00	%		10.65	%		6/11/27		4,043		4,043			4,043
CC SAG Holdings Corp. (4)	Diversified Consumer Services		S+575		0.75	%		11.18	%		6/29/28		2,992		2,992			2,992
ENS Holdings III Corp. & ES Opco USA LLC (4)	Trading Companies & Distributors		S+475		1.00	%		10.24	%		12/31/25		1,089		1,089	��		1,089
Fertility (ITC) Investment Holdco, LLC (4)	Health Care Providers & Services		S+650		1.00	%		11.63	%		1/3/29		5,970		5,799			5,970
Foundation Consumer Brands, LLC (4)	Personal Products		S+625		1.00	%		11.77	%		2/12/27		8,911		8,911			8,911
High Street Buyer, Inc. (4)	Insurance		S+600		0.75	%		11.54	%		4/16/28		4,433		4,433			4,433
iCIMS, Inc. (4)	Software		S+725		0.75	%		12.14	%		8/18/28		3,059		3,028			3,059
Kaseya, Inc. (4)	Software		S+625		0.75	%		11.58	%		6/23/29		9,000		9,000			9,000
Kid Distro Holdings, LLC (4)	Software		S+550		1.00	%		11.04	%		10/1/27		8,962		8,962			8,962
ONS MSO, LLC (4)	Health Care Providers & Services		S+625		1.00	%		11.62	%		7/8/25		5,936		5,779			5,936
PhyNet Dermatology LLC (4)	Health Care Providers & Services		S+625		1.00	%		11.45	%		8/16/24		5,964		5,964			5,964
Pinnacle Treatment Centers, Inc. (4)	Health Care Providers & Services		S+675		1.00	%		12.10	%		1/2/26		4,725		4,725			4,725
Plastics Management, LLC (4)	Health Care Providers & Services		S+500		1.00	%		10.44	%		8/18/27		5,651		5,476			5,651
RQM+ Corp. (4)	Life Sciences Tools & Services		S+575		1.00	%		11.40	%		8/12/26		5,970		5,970			5,970
RxSense Holdings LLC (4)	Diversified Consumer Services		S+500		1.00	%		10.47	%		3/13/26		2,977		2,977			2,977
SunMed Group Holdings, LLC (4)	Health Care Equipment & Supplies		S+550		0.75	%		10.99	%		6/16/28		8,971		8,971			8,971
The Townsend Company, LLC (4)	Commercial Services & Supplies		S+625		1.00	%		11.57	%		8/15/29		3,570		3,482			3,481
Tilley Distribution, Inc. (4)	Trading Companies & Distributors		S+600		1.00	%		11.54	%		12/31/26		5,963		5,963			5,963
Ultimate Baked Goods Midco LLC (4)	Packaged Foods & Meats		S+625		1.00	%		11.67	%		8/13/27		8,977		8,977			8,977
Urology Management Holdings, Inc. (4)	Health Care Providers & Services		S+625		1.00	%		11.79	%		6/15/26		2,465		2,403			2,440
Vessco Midco Holdings, LLC (4)	Water Utilities		S+450		1.00	%		9.92	%		11/2/26		1,845		1,845			1,845
West-NR Parent, Inc. (4)	Insurance		S+625		1.00	%		11.72	%		12/27/27		2,674		2,622			2,621

(1) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR. These instruments are typically subject to a SOFR floor.

(2) Floating rate debt investments typically bear interest at a rate determined by reference to the SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current interest rate in effect as of September 30, 2023.

(3) Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein.

(4) The Company also holds this security on its Consolidated Statements of Assets and Liabilities.

45

SSLP Portfolio as of December 31, 2022 (dollar amounts in thousands)

Description	Industry		Spread Above Index (1)		Floor			Interest Rate (2)			Maturity Date		Par Amount		Cost		Fair Value (3)
Atria Wealth Solutions, Inc. (4)		Diversified Financial Services		S+600		1.00	%		10.84	%		2/29/24	$	2,494	$	2,494	$	2,494
BayMark Health Services, Inc. (4)		Health Care Providers & Services		L+500		1.00	%		9.73	%		6/11/27		2,992		2,992		2,992
ENS Holdings III Corp. & ES Opco USA LLC (4)		Trading Companies & Distributors		L+475		1.00	%		9.43	%		12/31/25		1,097		1,097		1,097
Foundation Consumer Brands, LLC (4)		Personal Products		L+550		1.00	%		10.15	%		2/12/27		2,963		2,963		2,963
High Street Buyer, Inc. (4)		Insurance		L+600		0.75	%		10.73	%		4/16/28		2,494		2,494		2,494
Ivy Fertility Services, LLC (4)		Health Care Providers & Services		L+625		1.00	%		10.39	%		2/25/26		3,000		3,000		3,030
Kid Distro Holdings, LLC (4)		Software		L+575		1.00	%		10.48	%		10/1/27		2,992		2,992		2,992
															$	18,032	$	18,062

(1) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or SOFR. These instruments are typically subject to a LIBOR or SOFR floor.

(2) Floating rate debt investments typically bear interest at a rate determined by reference to either the LIBOR (“L”) or SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current interest rate in effect as of December 31, 2022.

(3) Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein.

(4) The Company also holds this security on its Consolidated Statements of Assets and Liabilities.

Below is certain summarized financial information for SSLP as of September 30, 2023 and December 31, 2022 and for the three and nine months ended September 30, 2023 and for the period December 1, 2022 (commencement of operations) through December 31, 2022:

	September 30, 2023		December 31, 2022
Selected Balance Sheet Information for SSLP (in thousands):
Investments at fair value (cost $132,993 and $18,032, respectively)	$	133,561	$	18,062
Cash and other assets		3,886		1,043
Total assets	$	137,447	$	19,105
Debt outstanding	$	77,826	$	—
Distributions payable		500		—
Interest payable and other credit facility related expenses		358		165
Accrued expenses and other payables		209		89
Total liabilities	$	78,893	$	254
Members’ equity	$	58,554	$	18,851
Total liabilities and members’ equity	$	137,447	$	19,105

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	For the three months ended September 30, 2023		For the nine months ended September 30, 2023		For the period December 1, 2022 (commencement of operations) to December 31, 2022
Selected Income Statement Information for SSLP (in thousands):
Interest income	$	2,757	$	5,371	$	152
Service fees*		66		123	$	4
Interest and other credit facility expenses		1,773		4,025		166
Organizational costs		—		—		73
Other general and administrative expenses		32		89		88
Total expenses		1,871		4,237		331
Net investment income (loss)	$	886	$	1,134	$	(179	)
Realized gain on investments		—		30		—
Net change in unrealized gain on investments		177		538		30
Net realized and unrealized gain on investments	$	177	$	568		30
Net income (loss)	$	1,063	$	1,702	$	(149	)

* Service fees are included within the Company’s Consolidated Statements of Operations as other income.

Critical Accounting Policies

The preparation of consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies. Within the context of these critical accounting policies and disclosed subsequent events herein, we are not currently aware of any other reasonably likely events or circumstances that would result in materially different amounts being reported.

Valuation of Portfolio Investments

In December 2020, the SEC adopted new Rule

2a-5

under the 1940 Act addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value, as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the 1940 Act, and the SEC noted that this definition will apply in all contexts under the 1940 Act. The Company complies with Rule

2a-5’s

valuation requirements.

We conduct the valuation of our assets, pursuant to which our net asset value is determined, at all times consistent with GAAP, and the 1940 Act. The Board will (1) periodically assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services, as applicable; (5) oversee the reporting required by Rule

2a-5

under the 1940 Act; and (6) maintain recordkeeping requirements under Rule

2a-5.

It is anticipated that in respect of many of the Company’s assets, readily available market quotations will not be obtainable and that such assets will be valued at fair value. A market quotation is readily available for a security only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Company can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. If the Company anticipates using a market quotation for a security, it will also monitor for circumstances that may necessitate the use of fair value, such as significant events that may cause concern over the reliability of a market quotation.

Our valuation procedures are set forth in more detail in Note 2(b) to the Company’s Consolidated Financial Statements. Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our consolidated financial statements.

47

Revenue Recognition

The Company records dividend income and interest, adjusted for amortization of premium and accretion of discount, on an accrual basis. Investments that are expected to pay regularly scheduled interest and/or dividends in cash are generally placed on

non-accrual

status when principal or interest/dividend cash payments are past due 30 days or more (90 days or more for equipment financing) and/or when it is no longer probable that principal or interest/dividend cash payments will be collected. Such

non-accrual

investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining interest or dividend obligations. Interest or dividend cash payments received on investments may be recognized as income or applied to principal depending upon management’s judgment. Some of our investments may have contractual PIK income. PIK income computed at the contractual rate, as applicable, is accrued and reflected as a receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received). PIK generally becomes due at the maturity of the investment or upon the investment being called by the issuer. At the point the Company believes PIK is not expected to be realized, the PIK investment will be placed on

non-accrual

status. When a PIK investment is placed on

non-accrual

status, the accrued, uncapitalized interest or dividends is reversed from the related receivable through interest or dividend income, respectively. The Company does not reverse previously capitalized PIK income. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on

non-accrual

status are restored to accrual status if the Company again believes that PIK is expected to be realized. Loan origination fees, original issue discount, and market discounts are capitalized and amortized into income using the effective interest method. Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income. We record prepayment premiums on loans and other investments as interest income when we receive such amounts. Capital structuring fees are recorded as other income when earned.

The typically higher yields and interest rates on PIK securities, to the extent we invested, reflects the payment deferral and increased credit risk associated with such instruments and that such investments may represent a significantly higher credit risk than coupon loans. PIK securities may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral. PIK income has the effect of generating investment income and increasing the incentive fees payable at a compounding rate. In addition, the deferral of PIK income also increases the

loan-to-value

ratio at a compounding rate. PIK securities create the risk that incentive fees will be paid to the Investment Adviser based on

non-cash

accruals that ultimately may not be realized, but the Investment Adviser will be under no obligation to reimburse the Company for these fees. For the three and nine months ended September 30, 2023, capitalized PIK income totaled $2.7 million and $8.9 million, respectively. For the three and nine months ended September 30, 2022, capitalized PIK income totaled $0.7 million and $1.7 million, respectively.

Net Realized Gain or Loss and Net Change in Unrealized Gain or Loss

We generally measure realized gain or loss by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized origination or commitment fees and prepayment penalties. The net change in unrealized gain or loss reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized gain or loss, when gains or losses are realized. Gains or losses on investments are calculated by using the specific identification method.

Income Taxes

SLRC, a U.S. corporation, has elected to be treated, and intends to qualify annually, as a RIC under Subchapter M of the Code. In order to qualify for U.S. federal income taxation as a RIC, the Company is required, among other things, to timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each year. Depending on the level of taxable income earned in a given tax year, we may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a nondeductible 4% U.S. federal excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year distributions, the Company accrues an estimated excise tax, if any, on estimated excess taxable income.

Recent Accounting Pronouncements

None.

RESULTS OF OPERATIONS

Results comparisons are for the three and nine months ended September 30, 2023 and September 30, 2022:

48

Investment Income

For the three and nine months ended September 30, 2023, gross investment income totaled $59.6 million and $169.5 million, respectively. For the three and nine months ended September 30, 2022, gross investment income totaled $47.6 million and $123.4 million, respectively. The increase in gross investment income for the year over year three month periods was primarily due to net growth of the income producing portfolio as well as an increase in index rates.    

Expenses

Net expenses totaled $36.3 million and $101.3 million, respectively, for the three and nine months ended September 30, 2023, of which $13.8 million and $40.6 million, respectively, were base management fees and performance-based incentive fees and $19.9 million and $53.0 million, respectively, were interest and other credit facility expenses. Over the same periods, $0.2 million and $0.4 million of performance-based incentive fees were waived. Administrative services and other general and administrative expenses totaled $2.7 million and $8.2 million, respectively, for the three and nine months ended September 30, 2023. Net expenses totaled $27.5 million and $69.5 million, respectively, for the three and nine months ended September 30, 2022, of which $12.9 million and $31.7 million, respectively, were base management fees and gross performance-based incentive fees and $12.8 million and $31.5 million, respectively, were interest and other credit facility expenses. Over the same periods, $0.2 million and $1.6 million, respectively, of performance-based incentive fees were waived. Administrative services and other general and administrative expenses totaled $2.1 million and $7.9 million, respectively, for the three and nine months ended September 30, 2022. Expenses generally consist of management and performance-based incentive fees, interest and other credit facility expenses, administrative services fees, insurance expenses, legal fees, directors’ fees, transfer agency fees, printing and proxy expenses, audit and tax services expenses, and other general and administrative expenses. Interest and other credit facility expenses generally consist of interest, unused fees, agency fees and loan origination fees, if any, among others. The increase in expenses for the three and nine months ended September 30, 2023 versus the three and nine months ended September 30, 2022 was primarily due to higher management fees, incentive fees and interest expense on a larger portfolio. Additionally, there was an increase in index rates on borrowings.

Net Investment Income

The Company’s net investment income totaled $23.4 million and $68.2 million, or $0.43 and $1.25, per average share, respectively, for the three and nine months ended September 30, 2023. The Company’s net investment income totaled $20.1 million and $53.8 million, or $0.37 and $1.06, per average share, respectively, for the three and nine months ended September 30, 2022.

Net Realized Loss

The Company had investment sales and prepayments totaling approximately $206 million and $473 million, respectively, for the three and nine months ended September 30, 2023. Net realized losses over the same periods were $31.0 million and $29.8 million, respectively. The Company had investment sales and prepayments totaling approximately $81 million and $261 million, respectively, for the three and nine months ended September 30, 2022. Net realized losses over the same periods were $37.3 million and $37.4 million, respectively. Net realized losses for the three and nine months ended September 30, 2023 were primarily related to our investment in American Teleconferencing Services, Ltd. Net realized losses for the three and nine months ended September 30, 2022 were primarily related to our investment in PhyMed Management, LLC.

Net Change in Unrealized Gain (Loss)

For the three and nine months ended September 30, 2023, net change in unrealized gain on the Company’s assets totaled $34.5 million and $14.4 million, respectively. Net unrealized gain for the three months ended September 30, 2023 is primarily due to the reversal of previously recognized unrealized depreciation on our investment in American Teleconferencing Services, Ltd. as well as appreciation in the value of our investments in Alimera Sciences, Inc. and SLR Credit Solutions, among others, partially offset by depreciation in the value of our investments in KBH Topco, LLC, among others. Net unrealized gain for the nine months ended September 30, 2023 is primarily due to the reversal of previously recognized unrealized depreciation on our investment in American Teleconferencing Services, Ltd. as well as appreciation in the value of our investments in Alimera Sciences, Inc., among others, partially offset by depreciation in the value of our investments in Oldco AI, LLC (f/k/a AmeriMark), SLR Credit Solutions and KBT Topco, LLC, among others. For the three and nine months ended September 30, 2022, net change in unrealized gain (loss) on the Company’s assets and liabilities totaled $30.8 million and ($17.1) million, respectively. Net unrealized gain for the three months ended September 30, 2022 is primarily due to the reversal of previously recognized unrealized depreciation on our investment in PhyMed Management LLC, as well as appreciation in the value of our investments in SLR Business Credit, Alimera Sciences, Inc. and Kingsbridge Holdings, LLC, among others, partially offset by depreciation in the value of our investments in SLR Equipment Finance, PPT Management Holdings, LLC, KBH Topco, LLC, SLR Healthcare ABL and SLR Credit Solutions, among others. Net unrealized loss for the nine months ended September 30, 2022 is primarily due to depreciation in the value of our investments in RD Holdco, Inc., American Teleconferencing Services, Ltd., SLR Credit Solutions and SLR Equipment Finance, among others, partially offset by the reversal of previously recognized unrealized depreciation on our investment in PhyMed Management LLC as well as appreciation on the value of our investments in SLR Business Credit and Alimera Sciences, Inc. in addition to unrealized appreciation on assets acquired in the Mergers due to the accounting treatment of the purchase discount.

49

Net Increase (Decrease) in Net Assets From Operations

For the three and nine months ended September 30, 2023, the Company had a net increase in net assets resulting from operations of $26.9 million and $52.8 million, respectively. For the same periods, earnings per average share were $0.49 and $0.97, respectively. For the three and nine months ended September 30, 2022, the Company had a net increase (decrease) in net assets resulting from operations of $13.5 million and ($0.7) million, respectively. For the same periods, earnings (losses) per average share were $0.25 and ($0.01), respectively.

LIQUIDITY AND CAPITAL RESOURCES

The Company’s liquidity and capital resources are generated and generally available through its Credit Facility and SPV Credit Facility (as defined below), the 2024 Unsecured Notes, the 2025 Unsecured Notes, the 2026 Unsecured Notes, the 2027 Unsecured Notes and the 2027 Series F Unsecured Notes (collectively the “Debt Instruments”), through cash flows from operations, investment sales, prepayments of senior and subordinated loans, income earned on investments and cash equivalents, and periodic

follow-on

equity and/or debt offerings. As of September 30, 2023, we had a total of $200.8 million of unused borrowing capacity under the Credit Facility and SPV Credit Facility, subject to borrowing base limits.

We may from time to time issue equity and/or debt securities in either public or private offerings. The issuance of such securities will depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance will occur or be successful. The primary uses of existing funds and any funds raised in the future is expected to be for investments in portfolio companies, repayment of indebtedness, cash distributions to our stockholders, or for other general corporate purposes.

Debt

On April 1, 2022, we entered into an assumption agreement (the “CF Assumption Agreement”), effective as of the closing of the Mergers. The CF Assumption Agreement relates to our assumption of the Revolving Credit Facility, originally entered into on August 26, 2011 (as amended from time to time, the “SPV Credit Facility”), by and among SUNS SPV LLC (the “SUNS SPV”), a wholly-owned subsidiary of SUNS, acting as borrower, Citibank, N.A., acting as administrative agent and collateral agent, and the other parties thereto. Currently, subsequent to an August 29, 2023 amendment, the commitment under the SPV Credit Facility is $275 million; however, the commitment can also be expanded up to $600 million. The stated interest rate on the SPV Credit Facility is SOFR plus

2.00%-2.50%

with no SOFR floor requirement and the current final maturity date is June 1, 2026. The SPV Credit Facility is secured by all of the assets held by SUNS SPV. Under the terms of the SPV Credit Facility and related transaction documents, we as successor to SUNS, and SUNS SPV, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SPV Credit Facility also includes usual and customary events of default for credit facilities of this nature. At September 30, 2023, outstanding USD equivalent borrowings under the SPV Credit Facility totaled $206.3 million.

On April 1, 2022, we entered into an assumption agreement (the “Note Assumption Agreement”), effective as of the closing of the Mergers. The Note Assumption Agreement relates to our assumption of $85 million in aggregate principal amount of five-year, 3.90% senior unsecured notes, due March 31, 2025 (the “2025 Unsecured Notes”) and other obligations of SUNS under the Note Purchase Agreement, dated as of March 31, 2020 (the “Note Purchase Agreement”), among SUNS and certain institutional investors. Interest on the 2025 Unsecured Notes is due semi-annually on March 31 and September 30. Pursuant to the Note Assumption Agreement, we expressly assumed on behalf of SUNS the due and punctual payment of the principal of (and premium, if any) and interest on all the 2025 Unsecured Notes outstanding, and the due and punctual performance and observance of every covenant and every condition of the Note Purchase Agreement, to be performed or observed by SUNS.

On January 6, 2022, the Company closed a private offering of $135 million of the 2027 Series F Unsecured Notes with a fixed interest rate of 3.33% and a maturity date of January 6, 2027. Interest on the 2027 Series F Unsecured Notes is due semi-annually on January 6 and July 6. The 2027 Series F Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 28, 2021, the Company closed on Amendment No. 1 to its August 28, 2019 senior secured credit agreement (the “Credit Facility”). Following the amendment, a $25 million November 2022 upsizing and a $40 million August 2023 commitment expiration, the Credit Facility is composed of $585 million of revolving credit and $100 million of term loans.    Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of

1.75%-2.00%

or the alternate base rate plus

0.75%-1.00%.    The

Credit Facility has a 0% floor and matures in December 2026 and includes ratable amortization in the final year. The Credit Facility may be increased up to $800 million with additional new lenders or an increase in commitments from current lenders. The Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Credit Facility contains certain financial covenants that among other things, require the Company to maintain a minimum shareholder’s equity and a minimum asset coverage ratio. At September 30, 2023, outstanding USD equivalent borrowings under the Credit Facility totaled $521.5 million, composed of $421.5 million of revolving credit and $100.0 million of term loans.

50

On September 14, 2021, the Company closed a private offering of $50 million of the 2027 Unsecured Notes with a fixed interest rate of 2.95% and a maturity date of March 14, 2027. Interest on the 2027 Unsecured Notes is due semi-annually on March 14 and September 14. The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 18, 2019, the Company closed a private offering of $125 million of the 2024 Unsecured Notes with a fixed interest rate of 4.20% and a maturity date of December 15, 2024. Interest on the 2024 Unsecured Notes is due semi-annually on June 15 and December 15. The 2024 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 18, 2019, the Company closed a private offering of $75 million of the 2026 Unsecured Notes with a fixed interest rate of 4.375% and a maturity date of December 15, 2026. Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15. The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On November 22, 2017, we issued $75 million in aggregate principal amount of publicly registered 2023 Unsecured Notes for net proceeds of $73.8 million. Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year, commencing on January 20, 2018. The 2023 Unsecured Notes were repaid in full at maturity on January 20, 2023.    

Certain covenants on our issued debt may restrict our business activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code. At September 30, 2023, the Company was in compliance with all financial and operational covenants required by the Debt Instruments.

Cash Equivalents

We deem certain U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities as cash equivalents. The Company makes purchases that are consistent with its purpose of making investments in securities described in paragraphs 1 through 3 of Section 55(a) of the 1940 Act. From time to time, including at or near the end of each fiscal quarter, we consider using various temporary investment strategies for our business. One strategy includes taking proactive steps by utilizing cash equivalents as temporary assets with the objective of enhancing our investment flexibility pursuant to Section 55 of the 1940 Act. More specifically, from time to time we may purchase U.S. Treasury bills or other high-quality, short-term debt securities at or near the end of the quarter and typically close out the position on a net cash basis subsequent to quarter end. We may also utilize repurchase agreements or other balance sheet transactions, including drawing down on the Credit Facility, as deemed appropriate. The amount of these transactions or such drawn cash for this purpose is excluded from total assets for purposes of computing the asset base upon which the management fee is determined. We held a face amount of $335 million in cash equivalents as of September 30, 2023.

Contractual Obligations

A summary of our significant contractual payment obligations is as follows as of September 30, 2023:

Payments Due by Period (in millions)

	Total		Less than 1 Year		1-3 Years		3-5 Years		More Than 5 Years
Revolving credit facilities (1)	$	627.8	$	—	$	206.3	$	421.5	$	—
Unsecured senior notes		470.0		—		210.0		260.0		—
Term loans		100.0		—		—		100.0		—

(1) As of September 30, 2023, we had a total of $232.3 million of unused borrowing capacity under our revolving credit facilities, subject to borrowing base limits.

Under the provisions of the 1940 Act, we are permitted, as a BDC, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy the asset coverage test. If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our common stockholders. Furthermore, as a result of issuing senior securities, we would also be exposed to typical risks associated with leverage, including an increased risk of loss.

We have also entered into two contracts under which we have future commitments: the Advisory Agreement, pursuant to which the Investment Adviser has agreed to serve as our investment adviser, and the Administration Agreement, pursuant to which the Administrator has agreed to furnish us with the facilities and administrative services necessary to conduct our

day-to-day

operations and provide on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance. Payments under the Advisory Agreement are equal to (1) a percentage of the value of our average gross assets and (2) a

two-part

incentive fee. Payments under the Administration Agreement are equal to an amount based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, including rent, technology systems, insurance and our allocable portion of the costs of our chief financial officer and chief compliance officer and their respective staffs. Either party may terminate each of the Advisory Agreement and administration agreement without penalty upon 60 days written notice to the other. See note 3 to our Consolidated Financial Statements.

51

On July 31, 2017, the Company, NEFPASS LLC and NEFCORP LLC entered into a servicing agreement.    NEFCORP LLC was engaged to provide NEFPASS LLC with administrative services related to the loans and capital leases held by NEFPASS LLC. NEFPASS LLC may terminate this agreement upon 30 days written notice to NEFCORP LLC.

On October 7, 2022, the Company committed $50 million to SSLP and entered into a servicing agreement. SSLP engaged and retained the Company to provide certain administrative services relating to the facilities, supplies and necessary ongoing overhead support services for the operation of SSLP’s ongoing business affairs in exchange for a fee.

Senior Securities

Information about our senior securities is shown in the following table (in thousands) as of the quarter ended September 30, 2023 and each year ended December 31 for the past ten years, unless otherwise noted. The “—” indicates information which the SEC expressly does not require to be disclosed for certain types of senior securities.

Class and Year	Total Amount Outstanding(1)		Asset Coverage Per Unit(2)		Involuntary Liquidating Preference Per Unit(3)		Average Market Value Per Unit(4)
Credit Facility
Fiscal 2023 (through September 30, 2023)	$	421,500	$	642		—		N/A
Fiscal 2022		293,000		513		—		N/A
Fiscal 2021		222,500		552		—		N/A
Fiscal 2020		126,000		421		—		N/A
Fiscal 2019		42,900		182		—		N/A
Fiscal 2018		96,400		593		—		N/A
Fiscal 2017		245,600		1,225		—		N/A
Fiscal 2016		115,200		990		—		N/A
Fiscal 2015		207,900		1,459		—		N/A
Fiscal 2014		—		—		—		N/A
Fiscal 2013		—		—		—		N/A
SPV Credit Facility
Fiscal 2023 (through September 30, 2023)		206,250		314		—		N/A
Fiscal 2022		155,200		272		—		N/A
2022 Unsecured Notes
Fiscal 2022		—		—		—		N/A
Fiscal 2021		150,000		372		—		N/A
Fiscal 2020		150,000		501		—		N/A
Fiscal 2019		150,000		638		—		N/A
Fiscal 2018		150,000		923		—		N/A
Fiscal 2017		150,000		748		—		N/A
Fiscal 2016		50,000		430		—		N/A
2022 Tranche C Notes
Fiscal 2022		—		—		—		N/A
Fiscal 2021		21,000		52		—		N/A
Fiscal 2020		21,000		70		—		N/A
Fiscal 2019		21,000		89		—		N/A
Fiscal 2018		21,000		129		—		N/A
Fiscal 2017		21,000		105		—		N/A
2023 Unsecured Notes
Fiscal 2023 (through September 30, 2023)		—		—		—		N/A
Fiscal 2022		75,000		131		—		N/A
Fiscal 2021		75,000		186		—		N/A
Fiscal 2020		75,000		250		—		N/A
Fiscal 2019		75,000		319		—		N/A
Fiscal 2018		75,000		461		—		N/A
Fiscal 2017		75,000		374		—		N/A

52

Class and Year	Total Amount Outstanding(1)		Asset Coverage Per Unit(2)		Involuntary Liquidating Preference Per Unit(3)		Average Market Value Per Unit(4)
2024 Unsecured Notes
Fiscal 2023 (through September 30, 2023)		125,000		190		—		N/A
Fiscal 2022		125,000		219		—		N/A
Fiscal 2021		125,000		309		—		N/A
Fiscal 2020		125,000		417		—		N/A
Fiscal 2019		125,000		531		—		N/A
2025 Unsecured Notes
Fiscal 2023 (through September 30, 2023)		85,000		129		—		N/A
Fiscal 2022		85,000		149		—		N/A
2026 Unsecured Notes
Fiscal 2023 (through September 30, 2023)		75,000		114		—		N/A
Fiscal 2022		75,000		131		—		N/A
Fiscal 2021		75,000		186		—		N/A
Fiscal 2020		75,000		250		—		N/A
Fiscal 2019		75,000		319		—		N/A
2027 Unsecured Notes
Fiscal 2023 (through September 30, 2023)		50,000		76		—		N/A
Fiscal 2022		50,000		88		—		N/A
Fiscal 2021		50,000		124		—		N/A
2027 Series F Unsecured Notes
Fiscal 2023 (through September 30, 2023)		135,000		206		—		N/A
Fiscal 2022		135,000		237		—		N/A
2042 Unsecured Notes
Fiscal 2017		—		—		—		N/A
Fiscal 2016		100,000		859		—	$	1,002
Fiscal 2015		100,000		702		—		982
Fiscal 2014		100,000		2,294		—		943
Fiscal 2013		100,000		2,411		—		934
Senior Secured Notes
Fiscal 2017		—		—		—		N/A
Fiscal 2016		75,000		645		—		N/A
Fiscal 2015		75,000		527		—		N/A
Fiscal 2014		75,000		1,721		—		N/A
Fiscal 2013		75,000		1,808		—		N/A
Term Loans
Fiscal 2023 (through September 30, 2023)		100,000		152		—		N/A
Fiscal 2022		100,000		175		—		N/A
Fiscal 2021		100,000		248		—		N/A
Fiscal 2020		75,000		250		—		N/A
Fiscal 2019		75,000		319		—		N/A
Fiscal 2018		50,000		308		—		N/A
Fiscal 2017		50,000		250		—		N/A
Fiscal 2016		50,000		430		—		N/A
Fiscal 2015		50,000		351		—		N/A
Fiscal 2014		50,000		1,147		—		N/A
Fiscal 2013		50,000		1,206		—		N/A
NEFPASS Facility
Fiscal 2021		—		—		—		N/A
Fiscal 2020		30,000		100		—		N/A
Fiscal 2019		30,000		128		—		N/A
Fiscal 2018		30,000		185		—		N/A

53

SSLP Facility
Fiscal 2019		—		—	—	N/A
Fiscal 2018		53,785		331	—	N/A
Total Senior Securities
Fiscal 2023 (through September 30, 2023)	$	1,197,750	$	1,823	—	N/A
Fiscal 2022		1,093,200		1,915	—	N/A
Fiscal 2021		818,500		2,029	—	N/A
Fiscal 2020		677,000		2,259	—	N/A
Fiscal 2019		593,900		2,525	—	N/A
Fiscal 2018		476,185		2,930	—	N/A
Fiscal 2017		541,600		2,702	—	N/A
Fiscal 2016		390,200		3,354	—	N/A
Fiscal 2015		432,900		3,039	—	N/A
Fiscal 2014		225,000		5,162	—	N/A
Fiscal 2013		225,000		5,425	—	N/A

(1) Total amount of each class of senior securities outstanding (in thousands) at the end of the period presented.

(2) The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by all senior securities representing indebtedness. This asset coverage ratio is multiplied by one thousand to determine the Asset Coverage Per Unit. In order to determine the specific Asset Coverage Per Unit for each class of debt, the total Asset Coverage Per Unit is allocated based on the amount outstanding in each class of debt at the end of the period. As of September 30, 2023, asset coverage was 182.3%.

(3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it.

(4) Not applicable except for the 2042 Unsecured Notes which were publicly traded. The Average Market Value Per Unit is calculated by taking the daily average closing price during the period and dividing it by twenty-five dollars per share and multiplying the result by one thousand to determine a unit price per thousand consistent with Asset Coverage Per Unit. The average market value for the fiscal 2016, 2015, 2014 and 2013 periods was $100,175, $98,196, $94,301 and $93,392, respectively.

Off-Balance

Sheet Arrangements

From time to time and in the normal course of business, the Company may make unfunded capital commitments to current or prospective portfolio companies. Typically, the Company may agree to provide delayed-draw term loans or, to a lesser extent, revolving loan or equity commitments. These unfunded capital commitments always take into account the Company’s liquidity and cash available for investment, portfolio and issuer diversification, and other considerations. Accordingly, the Company had the following unfunded capital commitments at September 30, 2023 and December 31, 2022, respectively:

54

	September 30, 2023		December 31, 2022
(in millions)
SLR Credit Solutions*	$	44.3	$	44.3
Outset Medical, Inc.		35.1		35.1
Apeel Technology, Inc.		32.8		32.8
Southern Orthodontic Partners Management, LLC		21.9		1.9
SLR Senior Lending Program LLC*		21.3		40.5
Orthopedic Care Partners Management, LLC		20.8		1.6
Human Interest, Inc.		20.1		20.1
CVAUSA Management, LLC		18.2		—
BDG Media, Inc.		12.6		3.5
Neuronetics, Inc.		11.6		—
ONS MSO, LLC		11.0		—
iCIMS, Inc.		10.5		11.4
Cerapedics, Inc.		9.2		6.7
Alkeme Intermediate Holdings, LLC		8.5		—
Arcutis Biotherapeutics, Inc.		8.4		8.4
Ardelyx, Inc.		7.8		7.8
West-NR Parent, Inc.		6.8		—
United Digestive MSO Parent, LLC		5.2		—
Peter C. Foy & Associates Insurance Services, LLC		5.1		1.1
Luxury Asset Capital, LLC		4.5		7.5
UVP Management, LLC		4.4		—
Kaseya, Inc.		3.8		3.9
Urology Management Holdings, Inc.		3.6		—
The Townsend Company, LLC		3.5		—
SLR Equipment Finance		3.5		1.0
Vertos Medical, Inc.		3.3		—
Foundation Consumer Brands, LLC		3.0		3.0
Kid Distro Holdings, LLC		2.7		2.7
Maurices, Incorporated		2.6		4.3
Erie Construction Mid-west, LLC		2.4		1.3
Ultimate Baked Goods Midco LLC		2.4		1.6
Basic Fun, Inc.		2.1		2.7
Bayside Opco, LLC		1.7		—
SunMed Group Holdings, LLC		1.6		0.8
SCP Eye Care, LLC		1.5		2.8
SLR Healthcare ABL*		1.4		1.4
RxSense Holdings LLC		1.3		1.3
Enverus Holdings, Inc.		1.2		1.0
Tilley Distribution, Inc.		1.1		0.5
GSM Acquisition Corp.		0.9		0.8
Composite Technology Acquisition Corp.		0.8		1.5
High Street Buyer, Inc.		0.6		0.3
CC SAG Holdings Corp. (Spectrum Automotive)		0.5		20.7
ENS Holdings III Corp, LLC		0.5		0.1
Pinnacle Treatment Centers, Inc.		0.4		1.7
Vessco Midco Holdings, LLC		0.3		3.9
TAUC Management, LLC		0.3		0.3
All States Ag Parts, LLC		0.2		0.1
Glooko, Inc.		—		17.9
World Insurance Associates, LLC		—		17.1
Spectrum Pharmaceuticals, Inc.		—		8.8
Atria Wealth Solutions, Inc.		—		8.2
Accession Risk Management Group, Inc.		—		7.5
Copper River Seafoods, Inc.		—		3.6
Meditrina, Inc.		—		3.4
One Touch Direct, LLC		—		3.1
DeepIntent, Inc.		—		3.1
Plastics Management, LLC		—		2.4
Pediatric Home Respiratory Services, LLC		—		1.8
Ivy Fertility Services, LLC		—		1.6
NAC Holdings Corporation		—		1.5
SPAR Marketing Force, Inc.		—		1.3
Montefiore Nyack Hospital		—		1.0
American Teleconferencing Services, Ltd.		—		1.1
BayMark Health Services, Inc.		—		0.4
Total Commitments	$	367.3	$	364.2

* The Company controls the funding of these commitments and may cancel them at its discretion.

The credit agreements of the above loan commitments contain customary lending provisions and/or are subject to the respective portfolio company’s achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the financial condition or business outlook for the company. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company. As of September 30, 2023 and December 31, 2022, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment.

In the normal course of business, we invest or trade in various financial instruments and may enter into various investment activities with

off-balance

sheet risk, which may include forward foreign currency contracts. Generally, these financial instruments represent future commitments to purchase or sell other financial instruments at specific terms at future dates. These financial instruments contain varying degrees of

off-balance

sheet risk whereby changes in the market value or our satisfaction of the obligations may exceed the amount recognized in our Consolidated Statements of Assets and Liabilities.

55

Distributions

The following table reflects the cash distributions per share on our common stock for the two most recent fiscal years and the current fiscal year to date:

Date Declared	Record Date		Payment Date		Amount
Fiscal 2023
November 7, 2023		December 14, 2023		December 28, 2023	$	0.41
September 5, 2023		September 20, 2023		September 28, 2023		0.136667
August 8, 2023		August 18, 2023		August 30, 2023		0.136667
July 5, 2023		July 20, 2023		August 1, 2023		0.136667
June 1, 2023		June 20, 2023		June 29, 2023		0.136667
May 10, 2023		May 24, 2023		June 1, 2023		0.136667
April 4, 2023		April 20, 2023		May 2, 2023		0.136667
February 28, 2023		March 23, 2023		April 4, 2023		0.136667
February 2, 2023		February 16, 2023		March 1, 2023		0.136667
January 10, 2023.		January 26, 2023		February 2, 2023		0.136667
Total 2023					$	1.64
Fiscal 2022
December 6, 2022		December 22, 2022		January 5, 2023	$	0.136667
November 2, 2022		November 17, 2022		December 1, 2022		0.136667
October 5, 2022		October 20, 2022		November 2, 2022		0.136667
September 2, 2022		September 20, 2022		October 4, 2022		0.136667
August 2, 2022		August 18, 2022		September 1, 2022		0.136667
July 6, 2022		July 21, 2022		August 2, 2022		0.136667
June 3, 2022		June 23, 2022		July 5, 2022		0.136667
May 3, 2022		May 19, 2022		June 2, 2022		0.136667
April 4, 2022		April 21, 2022		May 3, 2022		0.136667
March 1, 2022		March 18, 2022		April 1, 2022		0.41
Total 2022					$	1.64
Fiscal 2021
November 3, 2021		December 16, 2021		January 5, 2022	$	0.41
August 3, 2021		September 23, 2021		October 5, 2021		0.41
May 5, 2021		June 23, 2021		July 2, 2021		0.41
February 24, 2021.		March 18, 2021		April 2, 2021		0.41
Total 2021					$	1.64

Tax characteristics of all distributions will be reported to stockholders on Form 1099 after the end of the calendar year. Future monthly distributions, if any, will be determined by the Board. We expect that our distributions to stockholders will generally be from accumulated net investment income, from net realized capital gains or

non-taxable

return of capital, if any, as applicable.

We have elected to be taxed as a RIC under Subchapter M of the Code. To maintain our RIC tax treatment, we must distribute at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. In addition, although we currently intend to distribute realized net capital gains (

i.e.

, net long-term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment.

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 they 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, due to the asset coverage test applicable to us as a business development company, we may in the future be limited in our ability to make distributions. Also, the Credit Facility may limit our ability to declare distributions if we default under certain provisions. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of the tax benefits available to us as a RIC. In addition, in accordance with GAAP and tax regulations, we include in income certain amounts that we have not yet received in cash, such as contractual

payment-in-kind

income, which represents contractual income added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC.

56

With respect to the distributions to stockholders, income from origination, structuring, closing and certain other upfront fees associated with investments in portfolio companies are treated as taxable income and accordingly, distributed to stockholders.

Related Parties

We have entered into a number of business relationships with affiliated or related parties, including the following:

• We have entered into the Advisory Agreement with the Investment Adviser. Mr. Gross, our Chairman, Co-Chief Executive Officer and President and Mr. Spohler, our Co-Chief Executive Officer, Chief Operating Officer and board member, are managing members and senior investment professionals of, and have financial and controlling interests in, the Investment Adviser. In addition, Mr. Kajee, our Chief Financial Officer and Treasurer serves as the Chief Financial Officer for the Investment Adviser.

• The Administrator provides us with the office facilities and administrative services necessary to conduct day-to-day operations pursuant to our Administration Agreement. We reimburse the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions, and the compensation of our chief compliance officer, our chief financial officer and their respective staffs.

• We have entered into a license agreement with the Investment Adviser, pursuant to which the Investment Adviser has granted us a non-exclusive, royalty-free license to use the licensed marks “SOLAR” and “SLR”.

The Investment Adviser may also manage other funds in the future that may have investment mandates that are similar, in whole and in part, with ours. For example, the Investment Adviser presently serves as investment adviser to SCP Private Credit Income BDC LLC, an unlisted BDC that focuses on investing primarily in senior secured loans, including

non-traditional

asset-based loans and first lien loans, SLR HC BDC LLC, an unlisted BDC whose principal focus is to invest directly and indirectly in senior secured loans and other debt instruments typically to middle market companies within the healthcare industry, and SLR Private Credit BDC II LLC, an unlisted BDC focused on first lien senior secured floating rate loans. In addition, Michael S. Gross, our Chairman,

Co-Chief

Executive Officer and President, Bruce Spohler, our

Co-Chief

Executive Officer and Chief Operating Officer, and Shiraz Kajee, our Chief Financial Officer and Treasurer, serve in similar capacities for SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC. The Investment Adviser and certain investment advisory affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that we should invest

side-by-side

with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with the Investment Adviser’s allocation procedures. On June 13, 2017, the Investment Adviser received an exemptive order that permits the Company to participate in

negotiated co-investment transactions

with certain affiliates, in a manner consistent with the Company’s investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, and pursuant to various conditions (the “Order”). If the Company is unable to rely on the Order for a particular opportunity, such opportunity will be allocated first to the entity whose investment strategy is the most consistent with the opportunity being allocated, and second, if the terms of the opportunity are consistent with more than one entity’s investment strategy, on an alternating basis. Although the Investment Adviser’s investment professionals will endeavor to allocate investment opportunities in a fair and equitable manner, the Company and its stockholders could be adversely affected to the extent investment opportunities are allocated among us and other investment vehicles managed or sponsored by, or affiliated with, our executive officers, directors and members of the Investment Adviser.

Related party transactions may occur among us, SLR Senior Lending Program LLC, SLR Senior Lending Program SPV LLC, SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business Credit, SLR Healthcare ABL and SLR Equipment.    These transactions may occur in the normal course of business. No administrative or other fees are paid to the Investment Adviser by SLR Senior Lending Program LLC, SLR Senior Lending Program SPV LLC, SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business Credit, SLR Healthcare ABL or SLR Equipment.

In addition, we have adopted a formal code of ethics that governs the conduct of our officers and directors. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law.

57

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. Uncertainty with respect to rising interest rates, inflationary pressures, risks in respect of a failure to increase the U.S. debt ceiling or a downgrade in the U.S. credit rating, the wars between Ukraine and Russia and health epidemics and pandemics introduced significant volatility in the financial markets, and the effects of this volatility have materially impacted and could continue to materially impact our market risks. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. 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. In a low interest rate environment, including a reduction of LIBOR and SOFR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results. Conversely, in a rising interest rate environment, such as the current economic environment, such difference could potentially increase thereby increasing our net investment income. During the nine months ended September 30, 2023, certain investments in our comprehensive investment portfolio had floating interest rates. These floating rate investments were primarily based on floating LIBOR or SOFR and typically have durations of one to three months after which they reset to current market interest rates. Additionally, some of these investments have floors. The Company also has revolving credit facilities that are generally based on floating SOFR. Assuming no changes to our balance sheet as of September 30, 2023 and no new defaults by portfolio companies, a hypothetical one percent decrease in LIBOR and SOFR on our comprehensive floating rate assets and liabilities would decrease our net investment income by seven cents per average share over the next twelve months. Assuming no changes to our balance sheet as of September 30, 2023 and no new defaults by portfolio companies, a hypothetical one percent increase in LIBOR and SOFR on our comprehensive floating rate assets and liabilities would increase our net investment income by approximately eight cents per average share over the next twelve months. However, we may hedge against interest rate fluctuations from time to time by using standard hedging instruments such as futures, options, swaps and forward contracts subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in any benefits of certain changes in interest rates with respect to our portfolio of investments. At September 30, 2023, we had no interest rate hedging instruments outstanding on our balance sheet.

Increase (Decrease) in LIBOR and SOFR		(1.00	%)		1.00	%
Increase (Decrease) in Net Investment Income Per Share Per Year	$	(0.07	)	$	0.08

We may also have exposure to foreign currencies through various investments. These investments are converted into U.S. dollars at the balance sheet date, exposing us to movements in foreign exchange rates. In order to reduce our exposure to fluctuations in foreign exchange rates, we may borrow from time to time in such currencies under our multi-currency revolving credit facility or enter into forward currency or similar contracts.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

As of September 30, 2023 (the end of the period covered by this report), we, including our

Co-Chief

Executive Officers 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)

of the Securities Act of 1934, as amended (the “Exchange Act”). Based on that evaluation, our management, including the

Co-Chief

Executive Officers 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 SEC filings 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.

(b) Changes in Internal Controls Over Financial Reporting

Management has not identified any change in the Company’s internal control over financial reporting that occurred during the third quarter of 2023 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

58

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We and our consolidated subsidiaries are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us or our consolidated subsidiaries. From time to time, we and our consolidated subsidiaries may be a party to certain legal proceedings in the ordinary course of business, 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.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Risk Factors” in the February 28, 2023 filing of our Annual Report on

Form 10-K, which

could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. Other than the risk factors set forth below, there have been no material changes during the period ended September 30, 2023 to the risk factors discussed in “Risk Factors” in the February 28, 2023 filing of our Annual Report on Form

10-K.

Adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults or

non-performance

by financial institutions or transactional counterparties could have a material adverse effect on us, the Investment Adviser and our portfolio companies.

Cash not held in custody accounts and held by us, our Investment Adviser and by our portfolio companies in

non-interest-bearing

and interest-bearing operating accounts could, at times, exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. If such banking institutions were to fail, we, our Investment Adviser, or our portfolio companies could lose all or a portion of those amounts held in excess of such insurance limits. In addition, actual events involving limited liquidity, defaults,

non-performance

or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems, which could adversely affect our, our Investment Adviser’s and our portfolio companies’ business, financial condition, results of operations, or prospects.

Although we and our Investment Adviser assess our and our portfolio companies’ banking and financing relationships as we believe necessary or appropriate, our and our portfolio companies’ access to funding sources and other credit arrangements in amounts adequate to finance or capitalize current and projected future business operations could be significantly impaired by factors that affect the financial institutions with which we, our Investment Adviser or our portfolio companies have arrangements directly or the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions or instability in the financial services industry or financial markets, or concerns or negative expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions or financial services industry companies with which we, our Investment Adviser or our portfolio companies have financial or business relationships, but could also include factors involving financial markets or the financial services industry generally.

In addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us, our Investment Adviser, or our portfolio companies to acquire financing on acceptable terms or at all.

Our stock repurchase program could affect the price of our common stock and increase volatility and may be suspended or terminated at any time, which may result in a decrease in the trading price of our common stock.

On May 9, 2023, the Board most recently extended our share repurchase program (the “Program”), under which we can repurchase up to $50 million of our outstanding common stock. Under the Program, purchases can be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations, at prices below the Company’s NAV as reported in its most recently published consolidated financial statements. We have in the past, and could in the future, enter into a plan to repurchase shares of our common stock pursuant to the Program in a manner intended to comply with the requirements of Rule

10b5-1

under the Exchange Act.

59

The Program is discretionary and whether purchases will be made under the Program and how much will be purchased at any time is uncertain and dependent on prevailing market prices and trading volumes, all of which we cannot predict. These activities could have the effect of maintaining the market price of our common stock or retarding a decline in the market price of the common stock, and, as a result, the price of our common stock could be higher than the price that otherwise might exist in the open market. Repurchases pursuant to the Program could affect the price of our common stock and increase its volatility. The existence of the Program could also cause the price of our common stock to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for our common stock. There can be no assurance that any stock repurchases will enhance stockholder value because the market price of our common stock could decline below the levels at which we repurchased such shares. Any failure to repurchase shares after we have announced our intention to do so could negatively impact our reputation and investor confidence in us and could negatively impact our stock price. Although the Program is intended to enhance long-term stockholder value, short-term stock price fluctuations could reduce the Program’s effectiveness.

The alternative reference rates that have replaced LIBOR in our credit arrangements and other financial instruments may not yield the same or similar economic results as LIBOR over the life of such transactions.

The London Interbank Offered Rate (“LIBOR”) is an index rate that historically was widely used in lending transactions and was a common reference rate for setting the floating interest rate on private loans. LIBOR was typically the reference rate used in floating-rate loans extended to our portfolio companies.

The ICE Benchmark Administration (“IBA”) (the entity that is responsible for calculating LIBOR) ceased providing overnight, one, three, six and twelve months USD LIBOR tenors on June 30, 2023. In addition, the United Kingdom’s Financial Conduct Authority (“FCA”), which oversees the IBA, now prohibits entities supervised by the FCA from using LIBORs, including USD LIBOR, except in very limited circumstances.

In the United States, SOFR is the preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. SOFR is published by the Federal Reserve Bank of New York each U.S. Government Securities Business Day, for transactions made on the immediately preceding U.S. Government Securities Business Day. Alternative reference rates that may replace LIBOR, including SOFR for USD transactions, may not yield the same or similar economic results as LIBOR over the lives of such transactions.

As of the filing date of this Quarterly Report on Form

10-Q,

many of our loans that referenced LIBOR have been amended to reference the forward-looking term rate published by CME Group Benchmark Administration Limited based on SOFR (“CME Term SOFR”) or CME Term SOFR plus a fixed spread adjustment. CME Term SOFR rates are forward-looking rates that are derived by compounding projected overnight SOFR rates over one, three, and six months taking into account the values of multiple consecutive, executed,

one-month

and three-month CME Group traded SOFR futures contracts and, in some cases,

over-the-counter

SOFR Overnight Indexed Swaps as an indicator of CME Term SOFR reference rate values. CME Term SOFR and the inputs on which it is based are derived from SOFR. Since CME Term SOFR is a relatively new market rate, there will likely be no established trading market for credit agreements or other financial instruments when they are issued, and an established market may never develop or may not be liquid. Market terms for instruments referencing CME Term SOFR rates may be lower than those of later-issued CME Term SOFR indexed instruments. Similarly, if CME Term SOFR does not prove to be widely used, the trading price of instruments referencing CME Term SOFR may be lower than those of instruments indexed to indices that are more widely used. Further, the composition and characteristics of SOFR and CME Term SOFR are not the same as those of LIBOR. Even with the application of a fixed spread adjustment, LIBOR and CME Term SOFR will not have the same composition and characteristics, and there can be no assurance that the replacement rate, as so adjusted, will be a direct substitute for LIBOR.

There can be no guarantee that SOFR will not be discontinued or fundamentally altered in a manner that is materially adverse to the interests of investors in loans referencing SOFR. If the manner in which SOFR or CME Term SOFR is calculated is changed, that change may result in a reduction of the amount of interest payable on such loans and the trading prices of the SOFR Loans. In addition, there can be no guarantee that loans referencing SOFR or CME Term SOFR will continue to reference those rates until maturity or that, in the future, our loans will reference benchmark rates other than CME Term SOFR. Should any of these events occur, our loans, and the yield generated thereby, could be affected. Specifically, the anticipated yield on our loans may not be fully realized and our loans may be subject to increased pricing volatility and market risk.

60

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

We did not engage in unregistered sales of securities during the quarter ended September 30, 2023.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Rule

10b5-1

Trading Plans

During the fiscal quarter ended September 30, 2023, none of our directors or officers (as defined in Rule

16a-1(f)

under the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule

10b5-1(c)

under the Exchange Act or any

“non-Rule

10b5-1

trading arrangement” as defined in Item 408(c) of Regulation

S-K.

Item 6. Exhibits

The following exhibits are filed as part of this report or hereby incorporated by reference

to

exhibits previously filed with the SEC:

Exhibit Number	Description
2.1	Agreement and Plan of Merger among SLR Investment Corp., SLR Senior Investment Corp., Solstice Merger Sub, Inc. and SLR Capital Partners, LLC (for the limited purposes set forth therein), dated as of December 1, 2021(4)
3.1	Articles of Amendment and Restatement(1)
3.2	Second Amended and Restated Bylaws(4)
4.1	Form of Common Stock Certificate(2)
4.2	Indenture, dated as of November 16, 2012, between the Registrant and U.S. Bank National Association as trustee(3)
23.1	Awareness Letter of Independent Registered Public Accounting Firm*
31.1	Certification of Co-Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
31.2	Certification of Co-Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
31.3	Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
32.1	Certification of Co-Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.*
32.2	Certification of Co-Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.*
32.3	Certification of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.*
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.*
101.SCH	Inline XBRL Taxonomy Extension Schema Document*
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document*

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Exhibit Number	Description
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document*
104	Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

(1) Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Pre-Effective Amendment No. 7 (File No. 333-148734) filed on January 7, 2010.

(2) Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 (File No 333-148734) filed on February 9, 2010.

(3) Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Post-Effective Amendment No. 6 (File No. 333-172968) filed on November 16, 2012.

(4) Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on December 1, 2021.

* Filed herewith.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 7, 2023.

SLR INVESTMENT CORP.
By:	/s/ M ICHAEL S. G ROSS
	Michael S. Gross Co-Chief Executive Officer (Principal Executive Officer)
By:	/s/ B RUCE J. S POHLER
	Bruce J. Spohler Co-Chief Executive Officer (Principal Executive Officer)
By:	/s/ S HIRAZ Y. K AJEE
	Shiraz Y. Kajee Chief Financial Officer (Principal Financial and Accounting Officer)

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