TPVG 10-K & 10-Q changes, risk factors and insider trading

Our Adviser has entered into the Staffing Agreement with TPC. Pursuant to the Staffing Agreement, TPC makes, subject to the terms of the Staffing Agreement, its investment and portfolio management and monitoring teams available to our Adviser. We believe that the Staffing Agreement (i) provides us with access to deal flow generated by TPC in the ordinary course of its business; (ii) provides us with access to TPC’s investment professionals, including its senior investment teamteams led by either Mr. Labe andor Mr. Srivastava, and TPC’s non-investment employees; and (iii) commits certain key senior members of TPC’s Investment Committee to serve as members of our Adviser’s Investment Committee. Under the Staffing Agreement, TPC is required to make the Adviser aware of any financings that TPC evaluates, originates, or in which TPC participates, and the Adviser is responsible for allocating the investment opportunities amongst its affiliates fairly and equitably over time in accordance with its allocation policy. We depend on the diligence, skill and network of business contacts of our Adviser’s senior investment team and our executive officers to achieve our investment objective. We cannot assure you that TPC will fulfill its obligations under the Staffing Agreement or its allocation policy. Further, the Staffing Agreement may be terminated by either party with 60 days’ prior written notice to the other party, and we cannot assure you that the Staffing Agreement will not be terminated by TPC or that our Adviser will continue to have access to the professionals and Investment Committee of TPC or its information and deal flow. The loss of any such access would limit our ability to achieve our investment objective and operate as we anticipate. This could have a material adverse effect on our financial condition, results of operations and cash flows.

Our ability to achieve our investment objective depends on our Adviser’s ability to manage our business and to grow our investments and earnings. This depends on our Adviser’s ability to identify, invest in and monitor companies that meet our underwriting criteria. Furthermore, our Adviser may choose to slow or accelerate new business originations depending on market conditions, the rate of investment ofactivity among TPC’s select group of leading venture capital investors, our Adviser’s knowledge, expertise and experience, and other market dynamics. The achievement of our investment objective on a cost-effective basis depends upon our Adviser’s origination capabilities, execution of our investment process, its ability to provide competent, attentive and efficient services to us and, to a lesser extent, our access to financing on acceptable terms. Our Adviser’s senior investment team also has substantial responsibilities in connection with the management of TPC’s investment vehicles and business segments. We caution you that the principals of our Adviser may be called upon to provide and currently do provide significant managerial assistance to portfolio companies and other investment vehicles which are managed by the Adviser. These activities may distract them from servicing new investment opportunities for us or slow our rate of investment. Any failure to manage our business and our future growth effectively could have a material adverse effect on our financial condition, results of operations and cash flows.

Our competitors include both existing and newly formed equity and debt focuseddebt-focused public and private funds, other BDCs, investment banks, venture-oriented banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity and hedge funds. One or more of our competitors may have or develop relationships with TPC’s select group of leading venture capital investors. We may also be limited in our ability to make an investment pursuant to the restrictions under the 1940 Act to the extent one or more of our affiliates has an existing investment with such obligor. Additionally, many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than us. For example, we believe some of our competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have a lower cost of capital than we do, which may allow them to offer financing on more attractive terms. Also, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than we do. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or to the distribution and other requirements we must satisfy to maintain our ability to be subject to taxation as a RIC. Additionally, potential deregulation of bank capital requirements or lending restrictions could further increase competition from banks, which historically have not been as active in the venture lending market, and could adversely affect our ability to source attractive investment opportunities and the terms on which we are able to make investments.

The competitive pressures we face may have a material adverse effect on our financial condition, results of operations and cash flows. We do not compete primarily on the financing rates and terms we offer and believe that some competitors make loans with rates that are comparable or lower than our rates. We may lose some investment opportunities if we do not match our competitors’ pricing, terms and structure. However, if we match our competitors’ pricing, terms and structure, we may experience decreased net interest income, lower yields and increased risk of credit loss. Increased competition may also result in our making investments on less favorable terms than we otherwise would have anticipated, including with respect to pricing, covenants, collateral requirements and other structural protections, which could adversely affect our investment returns and increase our credit risk. As a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we may not be able to identify and make investments that are consistent with our investment objective.

A reduction in the availability of new capital or an inability on our part to access the capital markets successfully could limit our ability to grow our business and execute our business strategy fully and could decrease our earnings, if any, which would have a material adverse effect on our financial condition, results of operations and cash flows. We cannot predict the timing, price, or terms upon which additional capital, if any, may be available. Any future debt or equity financing, if available, may be on terms that are less favorable to us than our current financing arrangements, and any future equity issuance, if any, could dilute the percentage ownership of our current stockholders.

Since in these cases 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 net ordinary income and net realized short-term capital gains in excess of net realized long-term capital losses, if any, to maintain our tax treatment as a RIC and to avoid a 4% U.S. federal excise tax on certain of our undistributed income. In such a case, we may have to sell some of our investments at times we would not consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. If we are not able to obtain sufficient cash from other sources, we may fail to qualify for tax treatment as a RIC and thus be subject to corporate-level income tax. In addition, if a portfolio company defaults on a loan that has an accrued PIK interest, end-of-term payment, and/or OID component, we may be required to reverse prior income accruals in respect of such investment, which could reduce our net asset value and our reported net investment income for the period in which such reversal occurs. There can be no assurance that income accruals will ultimately be realized in cash.

We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution, including offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to us on account of equity investments in portfolio companies and fee and expense reimbursement or fee waivers from the Adviser, if any. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Any distributions made from sources other than cash flow from operations or relying on fee waivers or expense reimbursement, if any, from the Adviser are not based on our investment performance, and can be sustained only if we achieve positive investment performance in future periods and/or the Adviser continues to waive such fees or make such expense reimbursements, if any. The extent to which we pay distributions from sources other than cash flow from operations will depend on various factors, including the performance of our investments, the level of participation in our distribution reinvestment plan and how quickly we invest the proceeds from any offering. Stockholders should also understand that any future repayments to the Adviser, if applicable, will reduce the distributions that stockholders would otherwise receive. There can be no assurance that we will achieve such performance in order to sustain our distributions, or be able to pay distributions at all. Except with respect to its agreement to waive all or a portion of the quarterly income incentive fee under certain circumstances through the quarter ending December 31, 2025,2026, the Adviser has no obligation to waive fees.

We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount permitted by the 1940 Act. 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% (i.e., the amount of debt may not exceed 66-2/3% of the value of our assets) after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments at a time when such sales may be disadvantageous to us in order to repay a portion of our indebtedness. Also, any amounts that we use to service our indebtedness would not be available for distributions to our common stockholders. A failure to satisfy the asset coverage ratio could also restrict our ability to pay distributions, potentially impairing our ability to maintain our qualification as a RIC. To the extent we have senior securities outstanding, we will be exposed to typical risks associated with leverage, including an increased risk of loss.

We are not generally able to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock at a price below the then-current net asset value per share of our common stock if our Board determines that such sale is in our best interests, and if our stockholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the market value of such securities (less any distributing commission or discount). If we raise additional funds by issuing common stock or senior securities convertible into, or exchangeable for, our common stock, then the percentage ownership of our stockholders at that time will decrease and you may experience dilution. During periods of market dislocation or when our common stock trades below net asset value, our inability to issue shares below net asset value without required approvals may limit our ability to raise equity capital and take advantage of investment opportunities at attractive prices.

We finance certain of our investments with borrowed money when we expect the return on our investment to exceed the cost of borrowing. As of December 31, 2024,2025, we had $5.0$95.0 million of principal outstanding under the Credit Facility, $70.0 million of principal outstanding on our 4.50% notes due 2025 (the “2025 Notes”), $200.0 million of principal outstanding on our 4.50% notes due 2026 (the “2026 Notes”) and, $125.0 million of principal outstanding on our 5.00% notes due 2027 (the “2027 Notes”) and $50.0 million of principal outstanding on our 8.11% notes due 2028 (the “8.11% 2028 Notes”) before reducing the unamortized debt issuance costs. The use of leverage magnifies the potential for gain or loss on amounts invested. The use of leverage is generally considered a speculative investment technique and increases the risks associated with investing in shares of our common stock. Lenders will have fixed dollar claims on our assets that are superior to the claims of the holders of our common stock and we would expect such lenders to seek recovery against our assets in the event of a default. In addition, under the terms of the Credit Facility and any borrowing facility or other debt instrument we may enter into in the future, we are or will likely be required to use the net proceeds of any investments that we sell to repay a portion of the amount borrowed under such facility or instrument before applying such net proceeds to any other uses. If the value of our assets decreases, leveraging would cause our net asset value to decline more sharply than it otherwise would have had we not leveraged, thereby magnifying losses, potentially triggering mandatory debt payments or asset contributions under the Credit Facility or eliminating our stake in a leveraged investment. Similarly, any decrease in our revenue or income will cause our net income to decline more sharply than it would have had we not borrowed. Such a decline would also negatively affect our ability to make distributions with respect to our common stock. Our ability to service any debt depends largely on our financial performance and is subject to prevailing economic conditions and competitive pressures.

The note purchase agreements and applicable supplements that govern our outstanding unsecured notes contain customary terms and conditions for senior unsecured notes issued in a private placement, including, without limitation, affirmative and negative covenants such as information reporting, maintenance of our status as a BDC and certain restrictions with respect to transactions with affiliates, fundamental changes, changes of line of business, permitted liens and restricted payments. In addition, certain of the note purchase agreements and relevant supplements contain the following financial covenants: (1) a minimum asset coverage ratio of 1.50 to 1.00; (2) a minimum interest coverage ratio of 1.25 to 1.00; and (3) maintenance of minimum stockholders’ equity. The note purchase agreements and relevant supplements governing out outstanding unsecured notes also contain customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross-default under other indebtedness of the Company or subsidiary guarantors, if any, certain judgments and orders, certain events of bankruptcy, andand, with respect to certain note purchase agreements, breach of a key man clause with respect to James P. Labe (the Company’s Chief Executive Officer) and Sajal K. Srivastava (the Company’s President and Chief Investment Officer).

Adverse developments in the credit markets may impair our ability to amend any existing borrowing facility or enter into any other future borrowing facility.

During past U.S. and global economic downturns, many commercial banks and other financial institutions stopped lending or significantly curtailed their lending activity. In addition, in an effort to stem losses and reduce their exposure to segments of the economy deemed to be high risk, some financial institutions limited refinancing and loan modification transactions and reviewed the terms of existing facilities to identify bases for accelerating the maturity of existing lending facilities. Such developments in the credit markets may result in, among other things, write-offs, the re-pricing of credit risk, the failure of financial institutions, or worsening general economic conditions, any of which could materially and adversely impact the availability and cost of debt capital for us. If these conditions reoccur, it may be difficult for us to enter into a new borrowing facility, obtain other financing to finance the growth of our investments or refinance any outstanding indebtedness on acceptable economic terms or at all. Any failure to extend, refinance or repay such indebtedness when due could have a material adverse effect on our liquidity, results of operations and financial condition.

The costs related to cyber or other security threats or disruptions may not be fully insured or indemnified by other means. Cybersecurity has become a priority for regulators in the U.S. and around the world. With the SEC particularly focused on cybersecurity, we expect increased scrutiny of our and the Adviser’s policies and systems designed to manage cybersecurity risks and related disclosures. We also may face increased costs to comply with the new SEC rules, including the Adviser’s increased costs for cybersecurity training and management, a portion of which may be allocated to us. Many jurisdictions in which we operate have laws and regulations relating to data privacy, cybersecurity and protection of personal information, including the California Consumer Privacy Act, the New York SHIELD Act, the European Union General Data Protection Regulation (“GDPR”) and the U.K. GDPR. In addition, the SEC has indicated in recent periods that one of its examination priorities for the Office of Compliance Inspections and Examinations is to continue to examine cybersecurity procedures and controls, including testing the implementation of these procedures and controls. The SEC adopted cybersecurity disclosure rules effective in 2023, which impose requirements regarding the timely public disclosure of material cybersecurity incidents on Form 8-K and annual disclosure of cybersecurity risk management, strategy and governance in annual reports. In addition, amendments to Regulation S-P began to become effective in 2025, which requires registered investment advisers to adopt written incident response programs and to notify affected individuals of certain data breaches within specified timeframes. Compliance with these rules and any future changes in applicable cybersecurity regulations may impose additional costs on us and our Adviser and create additional risk that any failure to comply, or any material cybersecurity incident that we are required to disclose, could adversely affect investor confidence, the value of our securities, and our ability to raise capital.

There may be substantial financial penalties or fines for breaches of data security and privacy laws (which may include insufficient security for personal or other sensitive information). Non-compliance with any applicable privacy or data security laws represents a serious risk to our business. Some jurisdictions have also enacted laws requiring companies to notify individuals of data security breaches involving certain types of personal information. Breaches in security could potentially jeopardize our, the Adviser’s employees’ or our investors’ or counterparties’ confidential or other information processed and stored in, or transmitted through, our or the Adviser’s computer systems and networks (or those of our third-party service providers), or otherwise cause interruptions or malfunctions in our, the Adviser’s employees’, our investors’, our portfolio companies’, our counterparties’ or third parties’ operations, which could result in significant losses, increased costs, disruption of our business, liability to our investors, our portfolio companies and other counterparties, fines or penalties, litigation, regulatory intervention or reputational damage, which could also lead to loss of investors. Furthermore, cyber threats are increasingly sophisticated and include, among other techniques, ransomware and extortion attacks, social engineering (including "phishing" and "spear phishing"), business email compromise, and nation-state-sponsored attacks. Threat actors may exploit artificial intelligence tools to increase the sophistication, speed and scale of attacks, including by creating more convincing fraudulent communications, automating attack vectors and impersonating trusted counterparties. There can be no assurance that our cybersecurity measures or those of our third-party service providers will be sufficient to detect or prevent all cyber threats.

Our total investment in an individual company may be significant. As a result, if a significant investment fails to perform as expected, it may be subject to multiple credit rating downgrades on our internal rating scale within a short period of time. As a result of such deterioration in the performance of a significant investment, our financial condition, results of operations and cash flows could be more negatively affected and the magnitude of the loss could be more significant than if we had made smaller investments in more companies. Our concentration in technology sectors may amplify these risks, as U.S. tariff and trade policy changes and macroeconomic disruptions may disproportionately affect technology companies and the venture capital ecosystem that supports them, potentially causing simultaneous losses across multiple portfolio companies.

Venture capital firms in turn rely on their limited partners to pay in capital over time in order to fund their ongoing and future investment activities. To the extent that venture capital firms’ limited partners are unable or choose not to fulfill their ongoing funding obligations, the venture capital firms may be unable to continue operationally and/or financially supporting the ongoing operations of our portfolio companies, which could have a material adverse impact on our financing arrangement with our portfolio companies. The prolonged period of reduced IPO and M&A exit activity since 2022 has resulted in a significant decline in distributions from venture capital funds to their limited partners. As a result, many venture capital funds may be operating well beyond their originally contemplated fund lifecycles, and their general partners may face growing pressure from limited partners to return capital, wind down funds, or pursue secondary sales of portfolio company positions. These dynamics may reduce the willingness and ability of venture capital sponsors to make follow-on investments in our portfolio companies at critical junctures. Furthermore, reduced distributions from venture capital funds may impair limited partners’ ability to satisfy future capital calls, increasing the risk of limited partner default events that could further disrupt the financial support available to our portfolio companies.

As of December 31, 2024,2025, our unfunded commitments totaled $104.5$260.4 million to 1425 portfolio companies. Our credit agreements generally contain customary lending provisions that allow us relief from funding obligations for previously made commitments in instances where the underlying company experiences material adverse events that affect the financial condition or business outlook for the company. We cannot assure you that any of these unfunded commitments or any future obligations will be drawn by our portfolio companies. We have also entered into commitments with certain portfolio companies that permit an increase in the commitment amount in the future in the event that conditions to such increases are met. If such conditions to increase are met, these amounts may become unfunded commitments if not drawn prior to expiration. As of December 31, 2024,2025, we didhad nota have$0.3 anymillion backlog of potential future commitments.

The actual borrowing needs of our portfolio companies may exceed our expected funding requirements, especially during a challenging economic environment when our portfolio companies may be more dependent on our credit commitments due to the lack of available credit elsewhere, an increasing cost of credit or the limited availability of financing from venture capital firms. In addition, investors in some of our portfolio companies may fail to meet their underlying investment commitments due to liquidity or other financing issues, which may increase our portfolio companies’ borrowing needs. Any failure to meet our unfunded credit commitments in accordance with the actual borrowing needs of our portfolio companies may have a material adverse effect on our business, financial condition and results of operations. We intend to use cash flow from normal and early principal repayments, indebtedness, any proceeds from any subsequent equity or debt offerings, and available cash to fund our outstanding unfunded obligations. However, there can be no assurance that we will have sufficient capital available to fund these commitments as they become due. We may rely on assumptions, estimates, assurances and other information related to potential non-utilization of unfunded commitments by our portfolio companies as well as related to potential exit events, principal prepayments, and fee payments. To the extent these assumptions, estimates, assurances and other information are incorrect or events are delayed, we may not be able to fund commitments as they become due. To the extent we are not able to fund commitments as they come due, we may be forced to sell assets, modify the terms of our commitments or default on our commitments, and as a result, our business could be materially and adversely affected.

Our investment strategy contemplates making investments in foreign companies. As of December 31, 2024, 37.0% of our portfolio at fair value consisted of investments in foreign companies, including investments in European companies. Investing in such companies may expose us to additional risks not typically associated with investing in U.S. companies. These risks include changes in exchange control regulations, intellectual property laws, political and social instability, limitations on our ability to perfect our security interests, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the case in the United States, higher transaction costs, less government supervision of exchanges, matters relating to non-U.S. brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility. In addition, we expect that investing in such companies will expose us to higher administrative, legal and monitoring costs and expenses not typically associated with investing in U.S. companies.

Our cash distributions to stockholders will be automatically reinvested (net of applicable withholding tax) in additional shares of our common stock unless such stockholder has specifically “opted out” of our dividend reinvestment plan so as to receive cash distributions. In addition, we may in the future distribute taxable dividends that are payable in part in shares of our common stock. In accordance with certain applicable U.S. Treasury regulations and published guidance issued by the IRS, a RIC may treat a distribution of its own common stock as fulfilling the RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or common stock of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all stockholders must be at least 20% of the aggregate declared distribution. If too many stockholders elect to receive cash, the cash available for distribution must be allocated among the stockholders electing to receive cash (with the balance of the distribution paid in stock). In no event will any stockholder electing to receive cash receive less than the lesser of (a) the portion of the distribution such stockholder has elected to receive in cash or (b) an amount equal to his or her entire distribution times the percentage limitation on cash available for distribution. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in common stock will be equal to the amount of cash that could have been received instead of common stock. Taxable stockholders receiving such dividends will be required to include the full amount of the dividend as ordinary income (or as long-term capital gain to the extent such distribution is properly reported as a capital gain dividend) to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. stockholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our common stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividends including in respect of all or a portion of such dividend that is payable in common stock. In addition, if a significant number of our stockholders determine to sell shares of our common stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our common stock.

If debt securities are redeemable at our option, such as the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the $75,000,000 in aggregate principal outstanding amount of our 7.50% notes due 2028 (the “7.50% 2028 Notes (as defined in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Recent Developments”), we may choose to redeem debt securities at times when prevailing interest rates are lower than the interest rate paid on debt securities. In addition, if debt securities are subject to mandatory redemption, we may be required to redeem debt securities also at times when prevailing interest rates are lower than the interest rate paid on debt securities. In this circumstance, an investor may not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as the debt securities being redeemed.

Subject to the terms of the governing agreements, we may redeem the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and/or the 7.50% 2028 Notes in whole or in part at any time or from time to time at our option at par plus accrued interest to the prepayment date and, if applicable, a make-whole premium. In addition, we are obligated to offer to prepay the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and/or the 7.50% 2028 Notes at par plus accrued and unpaid interest up to, but excluding, the date of prepayment, if certain change in control events occur.

The 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 7.50% 2028 Notes are not secured by any of our assets or any of the assets of our subsidiaries and rank equally in right of payment with all of our existing and future unsubordinated, unsecured indebtedness. As a result, the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 7.50% 2028 Notes are effectively subordinated to any secured indebtedness we or our subsidiaries have currently incurred and may incur in the future (or any indebtedness that is initially unsecured to which we subsequently grant security) to the extent of the value of the assets securing such indebtedness. In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future secured indebtedness and the secured indebtedness of our subsidiaries may assert rights against the assets pledged to secure that indebtedness in order to receive full payment of their indebtedness before the assets may be used to pay other creditors, including the holders of the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 7.50% 2028 Notes.

The 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 7.50% 2028 Notes are obligations exclusively of TriplePoint Venture Growth BDC Corp. and not of any of our subsidiaries. None of our current subsidiaries is a guarantor of the 20252027 Notes, the 20268.11% Notes,2028 Notes and the 2027 Notes or the7.50% 2028 Notes, and the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 7.50% 2028 Notes are generally not required to be guaranteed by any subsidiaries we may acquire or create in the future. Except to the extent we are a creditor with recognized claims against our subsidiaries, all claims of other creditors of our subsidiaries, including claims under the Credit Facility, have priority over our equity interests in such subsidiaries (and therefore over the claims of our creditors, including holders of the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 20287.50% Notes202) with respect to the assets of such subsidiaries. Even if we are recognized as a creditor of one or more of our subsidiaries, our claims would still be effectively subordinated to any security interests in the assets of any such subsidiary and to any indebtedness or other liabilities of any such subsidiary senior to our claims, including under the Credit Facility. Consequently, the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 7.50% 2028 Notes, as well as any additional notes issued under the terms of the governing note purchase agreements, are or will be structurally subordinated to all indebtedness and other liabilities of any of our subsidiaries and any subsidiaries that we may in the future acquire or establish. In addition, our subsidiaries may incur substantial additional indebtedness in the future, including under the Credit Facility or otherwise, all of which would be structurally senior to the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 7.50% 2028 Notes.

A downgrade, suspension or withdrawal of the credit rating, if any, assigned by a rating agency to us or any of our outstanding unsecured notes, including the 20252027 Notes, the 20268.11% Notes,2028 the 2027 Notes,Notes and the 7.50% 2028 Notes or change in the debt markets could cause the liquidity or market value of our securities to decline significantly.

Our credit ratings are an assessment by rating agencies of our ability to pay our debts when due. Consequently, real or anticipated changes in our credit ratings will generally affect the value and trading prices, if any, of our outstanding unsecured notes, including the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 7.50% 2028 Notes. These credit ratings may not reflect the potential impact of risks relating to the structure or marketing of the notes. Credit ratings are not a recommendation to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion. We undertake no obligation to maintain our credit ratings or to advise any holders of our unsecured notes of any changes in our credit ratings, except as may be required under the terms of any applicable indenture or other governing document, including the note purchase agreements and applicable supplements that govern our outstanding unsecured notes. There can be no assurance that our credit ratings will remain for any given period of time or that such credit ratings will not be lowered or withdrawn entirely by the rating agency if in their judgment future circumstances relating to the basis of the credit ratings, such as adverse changes in our business or operations, so warrant. Any downgrades to us or our securities could increase our cost of capital or otherwise have a negative effect on our results of operations and financial condition. In this regard, the fixed rates of the 20252027 Notes, the 20268.11% Notes, the 20272028 Notes and the 7.50% 2028 Notes are subject to increases in the event that a certain below-investment-grade events occur, as set forth in the applicable note purchase agreements and applicable supplements. The conditions of the financial markets and prevailing interest rates have fluctuated in the past and are likely to fluctuate in the future, which could have an adverse effect on the market prices and value of our unsecured notes.

In addition, deterioration in the economic conditions in the Eurozone and other regions or countries globally and the resulting instability in global financial markets may pose a risk to our business. Financial markets have been affected at times by a number of global macroeconomic events, including but not limited to the following: large sovereign debts and fiscal deficits of several countries in Europe and in emerging markets jurisdictions, levels of non‑performing loans on the balance sheets of European banks, instability in the Chinese capital markets and the lingering global health crises. Global market and economic disruptions have affected, and may in the future affect, the U.S. capital markets, which could adversely affect our business, financial condition or results of operations. We cannot assure you that market disruptions inthe EuropeUnited andStates or other regions or countries, including the increased cost of funding for certain governments and financial institutions, will not impact the global economy, and we cannot assure you that assistance packages will be available, or if available, be sufficient to stabilize countries and markets in Europe or other regions affected by a financial crisis.economy. To the extent uncertainty regarding any economic recoveryconditions in Europethe United States or elsewhere negatively impacts consumer confidence and consumer credit factors, our business, financial condition and results of operations could be significantly and adversely affected. Moreover, there is a risk of both sector-specific and broad-based corrections and/or downturns in the equity and credit markets. Any of the foregoing could have a significant impact on the markets in which we operate and could have a material adverse impact on our business prospects and financial condition.

Various social and political circumstances in the U.S. and around the world that are outside our control may also contribute to increased market volatility and economic uncertainties or deterioration in the U.S. and worldwide. Such events, including trade tensions between the United States and China,China and other countries, other uncertainties regarding actual and potential shifts in U.S. and foreign trade, economic and other policies with other countries, the ongoing war between Russia and Ukraine and conflicts in the Middle East and health epidemics and pandemics, could adversely affect our business, financial condition or results of operations. In addition, developments related to U.S. trade policy, including the imposition of new or increased tariffs by the United States or retaliatory measures by trading partners, have increased global trade uncertainty and contributed to financial market volatility, which may adversely affect economic conditions and the operating results of our portfolio companies. Additionally, following the 2024 U.S. election, legislation may be adopted that could significantly affect the regulation of U.S. financial markets. Regulatory changes could result in greater competition from banks and other lenders with which we compete for lending and other investment opportunities. The United States may also potentially withdraw from or renegotiate various trade agreements and take other actions that would change current trade policies of the United States. These market and economic disruptions could negatively impact the operating results of our portfolio companies. This could in turn materially reduce our net asset value and dividends and adversely affect our financial prospects and condition.

Market conditions may in the future make it difficult to extend the maturity of or refinance our existing indebtedness, including the Credit Facility, the 20252027 Notes, the 20268.11% Note, the 20272028 Notes and the 7.50% 2028 Notes, and any failure to do so could have a material adverse effect on our business. If we are unable to raise or refinance debt, then our equity investors may not benefit from the potential for increased returns on equity resulting from leverage and we may be limited in our ability to make new commitments or to fund existing commitments to our portfolio companies. In addition, the illiquidity of our investments may make it difficult for us to sell such investments if required. As a result, we may realize significantly less than the value at which we have recorded our investments.

Developments related to any such pandemic may contribute to a decrease in the fair value of certain of our portfolio investments. In addition, such a pandemic and the related disruption and financial distress that may be experienced by our portfolio companies may have a material adverse effect on our investment income received from portfolio investments, particularly our interest income. Any decreases in our net investment income would increase the portion of our cash flows dedicated to servicing any then-existing borrowings, including under the Credit Facility, the 20252027 Notes, the 20268.11% Notes,2028 the 2027 Notes,Notes and the 7.50% 2028 Notes, and distribution payments to stockholders.

A lack of IPO or merger and acquisition, or M&A, opportunities for private companies, including venture capital-backed and institutional-backed companies could lead to portfolio companies staying longer in our portfolio as private entities still requiring funding. IPO activity in particular has slowed significantly during 2022-2023 and this trend,and, while improvedthere was some improvement in 2024,2024 mayand remain2025, activity has not returned to historical norms; the broader environment for thetechnology foreseeablecompany future.IPOs remains uncertain, subject to significant market volatility—including volatility driven by U.S. tariff policy announcements—elevated interest rate conditions, and macroeconomic uncertainty, any of which could further delay or diminish exit activity. This situation may adversely affect the amount of available funding for early-stage companies in particular as, in general, venture capital, institutional, and other sponsor firms are being forced to provide additional financing to late-stage companies that cannot complete an IPO or M&A transaction. In the best case, such stagnation would dampen returns, and in the worst case, could lead to unrealized depreciation and realized losses as some portfolio companies run short of cash and have to accept lower valuations in private fundings or are not able to access additional capital at all. A lack of IPO or M&A opportunities for private companies can also cause some venture capital, institutional, and other sponsor firms to change their strategies, leading some of them to reduce funding to their portfolio companies and making it more difficult for such companies to access capital and to fulfill their potential, which can result in unrealized depreciation and realized losses in such portfolio companies by other companies, such as ourselves, who are co-investors in such portfolio companies. The continued constraint on exit activity has also had an adverse impact on venture capital firms’ ability to raise new funds, further limiting the capital available to support our portfolio companies at critical junctures and increasing the risk that portfolio companies will be unable to obtain the ongoing equity financing they typically require to service our loans.

From time to time, capital markets may experience periods of disruption and instability. Such disruptions may result in, amongst other things, write-offs, the re-pricing of credit risk, the failure of financial institutions or worsening general economic conditions, any of which could materially and adversely impact the broader financial and credit markets and reduce the availability of debt and equity capital for the market as a whole and financial services firms in particular. There can be no assurance these market conditions will not occur or worsen in the future, including economic and political events in or affecting the world’s major economies, such as the ongoing war between Russia and Ukraine and conflicts in the Middle East. Sanctions imposed by the U.S. and other countries in connection with hostilities between Russia and Ukraine and the tensions between China and Taiwan have caused additional financial market volatility and affected the global economy. Concerns over future increases in inflation, economic recession, as well as interest rate volatility and fluctuations in oil and gas prices resulting from global production and demand levels, as well as geopolitical tension, have exacerbated market volatility. Market uncertainty and volatility have also been significantly magnified as a result of the 2024 U.S. presidential and congressional elections and the resulting uncertaintiespolicy changes, including the imposition of sweeping new tariffs beginning in 2025, uncertainty regarding actualongoing trade negotiations and potential shiftsretaliatory measures by U.S. trading partners, and potential significant changes to U.S. regulatory, fiscal, immigration, and monetary policies, all of which have created elevated and ongoing volatility in U.S.financial and foreign, trade, economic and other policies, including with respect to treaties and tariffs.markets.

Certain of our portfolio companies are in industries that have been impacted by inflation. Recent inflationary pressures have increased the costs of labor, energy and raw materials and have adversely affected consumer spending, economic growth and our portfolio companies’ operations. If such portfolio companies are unable to pass any increases in their costs of operations along to their customers, it could adversely affect their operating results and impact their ability to pay interest and principal on our loans, particularly if interest rates rise in response to inflation. In addition, any projected future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future realized or unrealized losses and therefore reduce our net assets resulting from operations. Tariff-driven cost increases represent an additional and potentially persistent inflationary pressure. Unlike monetary-policy-driven inflation, tariff-induced cost increases may be structural in nature, as supply-chain reconfigurations and sourcing substitutions required in response to tariffs can take significant time and capital to implement and may not fully offset higher input costs. Portfolio companies that rely on globally integrated supply chains—particularly technology companies dependent on Asian components—may face sustained margin compression as a result of tariff-related cost increases that cannot be fully passed through to customers.

The following tables show certain information relating to the composition of our portfolio as of December 31, 20242025 and 2023December 31, 2024:

The following tables show the fair value of the portfolio of investments, by industry and the percentage of the total investment portfolio, as of December 31, 20242025 and 2023December 31, 2024:

The following table shows the financing product type of our debt investments as of December 31, 20242025 and 2023December 31, 2024:

Growth capital loans in which the borrower held a term loan facility, with or without an accompanying revolving loan, in priority to our senior lien represent 11.3%11.4% and 14.5%11.3% of our debt investments at fair value as of December 31, 20242025 and 2023,December 31, 2024, respectively.

During the year ended December 31, 2024,2025, we entered into debt commitments with eight28 new portfolio companies and fiveseven existing portfolio companies totaling $175.0$508.1 million, funded debt investments to 1331 portfolio companies for $135.1$287.1 million in principal value, acquired warrant investments representing $0.8$4.2 million ofat fair value, and made direct equity investments of $0.7$1.9 million. Debt investments funded during the year ended December 31, 20242025 carried a weighted average annualized portfolio yield of 14.1%12.1% at origination.

During the year ended December 31, 2023,2024, we entered into debt commitments with twoeight new portfolio companies and eightfive existing portfolio companies totaling $31.5$175.0 million, funded debt investments to 2313 portfolio companies for $125.3$135.1 million in principal value, acquired warrant investments representing $2.6$0.8 million ofat fair value, and made direct equity investments of $0.2$0.7 million. Debt investments funded during the year ended December 31, 20232024 carried a weighted average annualized portfolio yield of 15.6%114.1% at origination.

We may enter into commitments with certain portfolio companies that permit an increase in the commitment amount in the future in the event that conditions to such increases are met (“backlog of potential future commitments”). If such conditions to increase are met, these amounts may become unfunded commitments if not drawn prior to expiration. As of December 31, 20242025 andwe 2023,had a $0.3 million backlog of potential future commitments. As of December 31, 2024, we did not have any backlog of potential future commitments.

The following table shows the credit rankingscategories for the portfolio companies that had outstandingCompany’s debt obligationsinvestments toat usfair value as of December 31, 20242025 and 2023December 31, 2024:

As of December 31, 20242025 and 2023,December 31, 2024, the weighted average investment ranking of our debt investment portfolio was 2.172.16 and 2.14,2.17, respectively. During the three months ended December 31, 2024,2025, portfolio company credit category changes, excluding fundings and repayments, consisted of the following: one portfoliodebt companyinvestment withrated a principal balance of $10.0 million was upgraded from YellowOrange (34) to White (2); one portfolio company with a principal balance of $20.3 million was downgraded from Clear (1) to White (2); and one portfolio company with a principal balance of $10.3 million was downgradedrestructured frominto Yellowa White (32) torated Orangedebt (4). During the three months ended December 31, 2023, portfolio company credit category changes, excluding fundings and repayments, consisted of the following: one portfolio companyinvestment with a principal balance of $10.0$0.1 million wasand upgradeda fromhybrid Whiteinstrument (2)categorized tonow Clear (1); three portfolio companies withas an aggregateequity principal balance of $55.5 million were downgraded from White (2) to Yellow (3); one portfolio companyinvestment with a principalfair balancevalue of $25.0$15.2 million was downgraded from White (2) to Orange (4); and one portfolio company with a principal balance of $6.0 million was downgraded from Yellow (3) to Orange (4).million.

For the year ended December 31, 2025, our net increase in net assets resulting from operations was $49.2 million, which was comprised of $42.3 million of net investment income and $6.9 million of net realized and unrealized gains. For the year ended December 31, 2024, our net increase in net assets resulting from operations was $32.0 million, which was comprised of $54.5 million of net investment income and $22.5 million of net realized and unrealized losses. For the year ended December 31, 2023, our net decrease in net assets resulting from operations was $39.8 million, which was comprised of $73.8 million of net investment income and $113.6 million of net realized and unrealized losses. On a per share basis for the year ended December 31, 2024,2025, net investment income was $1.40$1.05 per share and the net increase in net assets from operations was $0.82$1.22 per share, as compared to net investment income of $2.07$1.40 per share and a net decreaseincrease in net assets from operations of $1.12$0.82 per share for the year ended December 31, 2023.2024.

For the year ended December 31, 2024,2025, total investment and other income was $108.6$90.9 million as compared to $137.5$108.6 million for the year ended December 31, 2023.2024. The decrease in total investment and other income for the year ended December 31, 2024,2025, compared to the 20232024 period, was primarily due to a lower weighted average principal amount outstandingyields on our income-bearing debt investment portfolio.portfolio due in part to decreases in the Prime Rate.

For the year ended December 31, 2024,2025, total operating expenses were $54.1$48.7 millionmillion, inclusive of an income incentive fee waiver of $5.3 million, as compared to $63.7$54.1 million for the year ended December 31, 2023.2024, during which period there was no income incentive fee or related waiver.

Administration Agreement and general and administrative expenses totaled $8.7$8.6 million and $9.0$8.7 million for the years ended December 31, 20242025 and 2023,2024, respectively. The decrease for the year ended December 31, 2024,2025, as compared to the year ended December 31, 2023,2024, was primarily due to lower legalexcise feetax expenses.

Total return based on NAV is the change in ending NAV per share plus distributions per share paid during the period assuming participation in our dividend reinvestment plan divided by the beginning NAV per share for such period. Total return based on stock price is the change in the ending stock price of our common stock plus distributions paid during the period assuming participation in our dividend reinvestment plan divided by the beginning stock price of our common stock for such period. For the year ended December 31, 2025, our total return during the period based on the change in NAV plus distributions reinvested as of the respective distribution dates was 20.1% and our total return during the period based on the change in stock price plus distributions reinvested as of the respective distribution dates was 5.0%. For the year ended December 31, 2024, our total return during the period based on the change in NAV plus distributions reinvested as of the respective distribution dates was 12.2% and our total return during the period based on the change in stock price plus distributions reinvested as of the respective distribution dates was (18.5)%. For the year ended December 31, 2023, our total return during the period based on the change in NAV plus distributions reinvested as of the respective distribution dates was (10.3)% and our total return during the period based on the change in stock price plus distributions reinvested as of the respective distribution dates was 20.6%.

We believe that our current cash and cash equivalents on hand, our available borrowing capacity under the Credit Facility, as it may be extended or renewed from time to time, and our anticipated cash flows from operations, including from net cash proceeds from our Current ATM Program (describeddefined below), and contractual monthly portfolio company payments and cash flows, prepayments, and the ability to liquidate publicly traded investments, will be adequate to meet our cash needs for our daily operations, including to fund our unfunded commitment obligations.

During the year ended December 31, 2023,2025, net cash providedused byin operating activities, consisting primarily of principal payments and proceeds from investments, net of fundings and purchases of investments, net of principal prepayments and proceeds from investments and the items described in “Results of Operations,” was $106.1$57.0 million, and net cash provided by financing activities was $6.2$25.7 million due primarily to the issuance of the 8.11% 2028 Notes (as defined below) and net borrowings under the Credit Facility of $40.0$90.0 millionmillion, and $21.1 million in net proceeds from the issuance of shares of our common stock under the Prior ATM Program, primarilypartially offset by $54.9the repayment of the 2025 Notes (as defined below) and $41.3 million in distributions paid on our common stock.paid. As of December 31, 2023,2025, cash and cash equivalents, including restricted cash, waswere $171.6$47.4 million.

As a BDC, we generally have an ongoing need to raise additional capital for investment purposes. As a result, we expect, from time to time, to access the debt and equity markets when we believe it is necessary and appropriate to do so. In this regard, we continue to explore various options for obtaining additional debt or equity capital for investments. This may include expanding or extending the Credit Facility or the issuance of additional shares of our common stock, including through our Current ATM ProgramProgram, or debt securities. If we are unable to obtain leverage or raise equity capital on terms that are acceptable to us, our ability to grow our portfolio could be substantially impacted.

As of December 31, 2024,2025, we had $300$300.0 million in total commitments available under the Credit Facility, subject to various covenants and borrowing base requirements. The Credit Facility also includes an accordion feature, which allows us to increase the size of the Credit Facility to up to $400$400.0 million under certain circumstances. The revolving period under the Credit Facility is scheduled to expire on November 30, 2025,2027, and the scheduled maturity date of the Credit Facility is May 30, 20272029 (unless otherwise terminated earlier pursuant to its terms). BorrowingsAs of December 31, 2025 borrowings under the Credit Facility bear interest at the sum of (i) a floating rate based on certain indices, including SOFR and commercial paper rates (subject to a floor of 0.50%), plus (ii) a margin of 3.20%2.75% if facility utilization is greater than or equal to 75%, 3.35%2.85% if utilization is greater than or equal to 50% but less than 75%, 3.50%3.00% if utilization is less than 50% and 4.5% duringon or after the amortizationend of the revolving period. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the terms of the Credit Facility.

As of December 31, 20242025 and 2023,December 31, 2024, we had outstanding borrowings under the Credit Facility of $5.0$95.0 million and $215.0$5.0 million, respectively, excluding deferred credit facility costs of $3.9$4.6 million and $2.7$3.9 million, respectively, which is included in the consolidated statements of assets and liabilities. We had $295.0$205.0 million and $135.0$295.0 million of remaining capacity on our Credit Facility as of December 31, 20242025 and 2023,December 31, 2024, respectively.

On March 1, 2021, we completed a private offering of $200.0 million in aggregate principal amount of theour 4.50% unsecured notes due March 1, 2026 (the “2026 Notes”) and received net proceeds of $197.9 million, after the payment of fees and offering costs. The interest on the 2026 Notes, which accrues at an annual rate of 4.50%, is payable semiannually on March 19 and September 19 each year. The maturity date of the 2026 Notes is scheduled for March 1, 2026.

As of December 31, 20242025 and 2023,December 31, 2024, we have recorded in the consolidated statements of assets and liabilities our liability for the 2026 Notes, net of deferred issuance costs, of $199.5$199.9 million and $199.0$199.5 million, respectively. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the 2026 Notes.

On February 28, 2022, we completed a private offering of $125.0 million in aggregate principal amount of theour 5.00% unsecured notes due February 28, 2027 (the “2027 Notes”) and received net proceeds of $123.7 million, after the payment of fees and offering costs. The interest on the 2027 Notes, which accrues at an annual rate of 5.00%, is payable semiannually on February 28 and August 28 each year. The maturity date of the 2027 Notes is scheduled for February 28, 2027.

As of December 31, 20242025 and 2023,December 31, 2024, we have recorded in the consolidated statements of assets and liabilities our liability for the 2027 Notes, net of deferred issuance costs, of $124.4$124.7 million and $124.1$124.4 million, respectively. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the 2027 Notes.

(4)Not applicable for the Credit Facility, the 2025 Notes, the 2026 Notes andNotes, the 2027 Notes and the 8.11% 2028 Notes, as they are or were not registered for public trading. For the 6.75% Notes due 2020 (the “2020 Notes”),2020, the amounts represent the average of the daily closing prices on the NYSE for the year ended December 31, 2016 and for the period from August 4, 2015 (date of issuance) through December 31, 2015.2016. For the 20225.75% Notes,Notes due 2022, the amount represents the average of the daily closing prices on the NYSE for the years ended December 31, 2020, 2019, and 2018, and the period from July 14, 2017 (date of issuance) through December 31, 2017.

(5)The 2020 Notes, the 2022 Notes, the 2025 Notes, the 2026 NotesNotes, the 2027 Notes, and the 20278.11% 2028 Notes are disclosed at the aggregate principal amount outstanding.

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of December 31, 20242025 and 2023,December 31, 2024, our unfunded commitments totaled $104.5$260.4 million and $118.1$104.5 million, respectively, of which $9.1$50.7 million and $29.2$9.1 million, respectively, was dependent upon the portfolio companies reaching certain milestones before the debt commitment becomes available to them.

The following table shows our unfunded commitments by portfolio company as of December 31, 20242025 and 2023December 31, 2024:

The following table shows additional information on our unfunded commitments regarding milestones and expirations as of December 31, 20242025 and 2023December 31, 2024:

The fair value at the inception of the delay draw credit agreements with our portfolio companies is equal to the fees and/or warrants received to enter into these agreements, taking into account the remaining terms of the agreements and the relevant counterparty’s credit profile. The unfunded commitment liability reflects the fair value of these future funding commitments. As of December 31, 20242025 and 2023,December 31, 2024, the fair value for these unfunded commitments totaled $0.9$1.8 million and $1.6$0.9 million, respectively, and was included in “other accrued expenses and liabilities” in our consolidated statements of assets and liabilities.

There have been no material changes during the three months ended MarchJune 31,30, 2026 to the risk factors previously disclosed in our Annual Report on Form 10‑K for the year ended December 31, 2025 (filed with the SEC on March 4, 2026) which could materially affect our business, financial condition or operating results.

As of MarchJune 31,30, 2026, we had 311 investments in 134135 companies. Our investments included 101100 debt investments, 130131 warrant investments, and 80 direct equity and related investments. As of MarchJune 31,30, 2026, the aggregate cost and fair value of these investments were $825.1$830.8 million and $785.6$780.7 million, respectively. As of MarchJune 31,30, 2026, six of our portfolio companies were publicly traded. As of MarchJune 31,30, 2026, the 101100 debt investments had an aggregate fair value of $641.3$637.4 million and a weighted average loan to enterprise value ratio at the time of underwriting of 7.5%. Enterprise value of a portfolio company is estimated based on information available, including any information regarding the most recent rounds of equity funding, at the time of origination.

The following tables show certain information relating to the composition of our portfolio as of MarchJune 31,30, 2026 and December 31, 2025:

The following tables show the fair value of the portfolio of investments, by industry and the percentage of the total investment portfolio, as of MarchJune 31,30, 2026 and December 31, 2025:

The following table shows the financing product type of our debt investments as of MarchJune 31,30, 2026 and December 31, 2025:

Growth capital loans in which the borrower held a term loan facility, with or without an accompanying revolving loan, in priority to our senior lien represent 13.8%15.5% and 11.4% of our debt investments at fair value as of MarchJune 31,30, 2026 and December 31, 2025, respectively.

During the three months ended MarchJune 31,30, 2025,2026, we entered into debt commitments with fourthree new portfolio companies and onetwo existing portfolio companies totaling $76.5$29.8 million, funded debt investments to five10 portfolio companies for $27.7$47.8 million in principal value, and acquired warrant investments representing $0.8$0.3 million at fair value. Debt investments funded during the three months ended MarchJune 31,30, 20252026 carried a weighted average annualized portfolio yield of 13.3%12.8% at origination.

During the three months ended MarchJune 31,30, 2026, we received $23.6$28.6 million of principal prepayments, $1.6$4.6 million of early repayments, and $12.2 million of scheduled principal amortization. During the six months ended June 30, 2026, we received $52.2 million of principal prepayments, $6.2 million of early repayments and $1.9$14.1 million of scheduled principal amortization.

During the three months ended MarchJune 31,30, 2025, we received $17.0$43.7 million of principal prepayments, $0.8$1.3 million of early repayments and $9.9$11.3 million of scheduled principal amortization. During the six months ended June 30, 2025, we received $60.6 million of principal prepayments, $2.1 million of early repayments and $21.2 million of scheduled principal amortization.

The following table shows the total portfolio investment activity for the three and six months ended MarchJune 31,30, 2026 and 2025:

The following table shows the debt commitments, fundings of debt investments (principal balance) and equity investments, and non-binding term sheet activity for the three and six months ended MarchJune 31,30, 2026 and 2025:

We may enter into commitments with certain portfolio companies that permit an increase in the commitment amount in the future in the event that conditions to such increases are met (“backlog of potential future commitments”). If such conditions to increase are met, these amounts may become unfunded commitments if not drawn prior to expiration. As of MarchJune 31,30, 2026 we did not have any backlog of potential future commitments. As of December 31, 2025, we had a $0.3 million backlog of potential future commitments.

The following table shows the credit categories for the Company’s debt investments at fair value as of MarchJune 31,30, 2026 and December 31, 2025:

As of MarchJune 31,30, 2026 and December 31, 2025, the weighted average investment ranking of our debt investment portfolio was 2.252.28 and 2.16, respectively. During the three months ended MarchJune 31,30, 2026, portfolio company credit category changes, excluding fundings and repayments, consisted of the following: one portfolio company with a principal balance of $29.9$28.0 million was upgraded from Yellow (3) to White (2) and three portfolio companies with a principal balance of $102.9 million were downgraded from White (2) to Yellow (3).

As of MarchJune 31,30, 2026, we had investments in four portfolio companies which were on non-accrual status, with an aggregate cost and fair value of $38.6 million and $16.1$16.4 million, respectively. As of December 31, 2025, we had investments in four portfolio companies which were on non-accrual status, with an aggregate cost and fair value of $39.7 million and $17.1 million, respectively.

Comparison of operating results for the three and six months ended MarchJune 31,30, 2026 and 2025

For the three months ended MarchJune 31,30, 2026, our net increase in net assets resulting from operations was $6.2$10.7 million, which was comprised of $9.1$8.3 million of net investment income and $3.0$2.3 million of net realized and unrealized losses.gains. For the three months ended MarchJune 31,30, 2025, our net increase in net assets resulting from operations was $12.7$13.2 million, which was comprised of $10.7$11.3 million of net investment income and $2.0$1.9 million of net realized and unrealized gains. On a per share basis for the three months ended MarchJune 31,30, 2026, net investment income was $0.23$0.21 per share and the net increase in net assets from operations was $0.15$0.26 per share, as compared to net investment income of $0.27$0.28 per share and a net increase in net assets from operations of $0.32$0.33 per share for the three months ended MarchJune 31,30, 2025.

For the three months ended MarchJune 31,30, 2026, total investment and other income was $22.8$22.1 million as compared to $22.5$23.3 million for the three months ended MarchJune 31,30, 2025. The increasedecrease in total investment and other income for the three months ended MarchJune 31,30, 2026, compared to the 2025 period, is primarily due to a higher weighted average principal amount outstanding on our income-bearing debt investment portfolio and greaterless prepayment income,income partially offset fromand lower investment yields due in part to decreases in the Prime rate.

For the three months ended MarchJune 31,30, 2026, we recognized $0.7$0.1 million in other income consisting of $0.4$0.1 million due to the termination or expiration of unfunded commitments. For the three months ended June 30, 2025, we recognized $0.8 million in other income consisting of $33,000 due to the termination or expiration of unfunded commitments and $0.2$0.7 million from the realization of certain fees paid and accrued from portfolio companies. For the three months ended March 31, 2025, we recognized $0.9 million in other income consisting of $0.4 million due to the termination or expiration of unfunded commitments and $0.4 million from the realization of certain fees paid and accrued from portfolio companies

For the three months ended MarchJune 31,30, 2026, total operating expenses, inclusive of an income incentive fee waiver of $1.8$1.3 million, were $13.2$13.6 millionmillion, as compared to $11.3$11.7 millionmillion, inclusive of an income incentive fee waiver of $1.3 million, for the three months ended MarchJune 31,30, 2025, during which period there was no income incentive fee or related waiver.2025. For the three months ended MarchJune 31,30, 2026 and 2025, excise tax expenses were $0.4$0.2 million and $0.4 million, respectively.

Base management fees for the three months ended MarchJune 31,30, 2026 and 2025 totaled $3.6 million and $3.3 million, respectively. Base management fees for the six months ended June 30, 2026 and 2025 totaled $7.2 million and $6.6 million, respectively. Base management fees increased during the three and six months ended MarchJune 31,30, 2026, as compared to the three and six months ended MarchJune 31,30, 2025, due primarily to increases in the average size of our portfolio during the applicable periods used in the calculations.

The Adviser waived the $1.8$1.3 million and $3.2 million in income incentive fees earned for the three and six months ended MarchJune 31,30, 20262026, respectively, pursuant to a waiver agreement whereby the Adviser has agreed to waive, in full, any and all of the income incentive fee until and including the quarter ending December 31, 2026. There were no income incentive fees for the three months ended March 31, 2025. For the three and six months ended MarchJune 31,30, 2025, our income incentive fee was reduced by $2.1$1.0 millionand $3.1 million, respectively, due to the total return requirement under the income component of our incentive fee structure, which resulted in a corresponding increase in net investment income of $2.1$1.0 million.million and $3.1 million, respectively. The Adviser earned and waived $1.3 million in income incentive fees for the three and six months ended June 30, 2025.

There were no capital gains incentive fee expenses for the threesix months ended MarchJune 31,30, 2026 and 2025.

Interest expense and amortization of fees totaled $7.9$8.3 million and $6.4$6.7 million for the three months ended MarchJune 31,30, 2026 and 2025, respectively. The increase during the three months ended MarchJune 31,30, 2026, as compared to the three months ended MarchJune 31,30, 2025, is primarily due to a higher weighted-average outstanding principal balance under the Credit Facility. Interest expense and amortization of fees totaled $16.1 million and $13.1 million for the six months ended June 30, 2026 and 2025, respectively. The increase during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, is primarily due to a higher weighted-average outstanding principal balance under the Credit Facility.

Administration Agreement and general and administrative expenses totaled $1.7 million and $1.6$1.7 million for the three months ended MarchJune 31,30, 2026 and 2025, respectively. Administration Agreement and general and administrative expenses totaled $3.5 million and $3.3 million for the six months ended June 30, 2026 and 2025, respectively. The increase for the 2026 periods, as compared to the 2025 periods, is primarily due to higher overhead allocation.

During the three months ended MarchJune 31,30, 2025,2026, we recognized net realized gains on investments of $2.3$12.9 million,million resulting primarily from the partial sale of equity in one portfolio company.company and consideration for warrants in two portfolio companies. During the six months ended June 30, 2026, we recognized net realized gains on investments of $12.6 million resulting primarily from the partial sale of equity in one portfolio company and consideration for warrants in two portfolio companies.

Net change in unrealized losses on investments during the three months ended MarchJune 31,30, 20252026 was $0.3$10.6 million, consisting of $2.5$11.9 million of net unrealized losses from the reversal of previously recorded unrealized gains on investments realized during the periodperiod, and $1.6$9.6 million of net unrealized losses on the existing debt investment portfolio resulting from fair value adjustments, partiallyand offset by $2.6$0.5 million of net unrealized gainslosses from foreign currency adjustmentsadjustments, andpartially $1.2offset by $11.4 million of net unrealized gains on the existing warrant and equity portfolio resulting from fair value adjustments. Net change in unrealized losses on investments during the six months ended June 30, 2026 was $13.3 million, consisting of $16.6 million of net unrealized losses on the existing debt investment portfolio resulting from fair value adjustments, $12.1 million net unrealized losses from the reversal of previously recorded unrealized gains on investments realized during the period, and $2.3 million of net unrealized losses from foreign currency adjustments, partially offset by $17.7 million of net unrealized gains on the existing warrant and equity portfolio resulting from fair value adjustments.

The following table shows the weighted average annualized portfolio yield on our debt investments, comprising of cash interest income, accretion of the net purchase discount, facilities fees and the value of warrant investments received, accretion of EOT payments and the accelerated receipt of EOT payments on prepayments for the three and six months ended June 30, 2026:

(1)Weighted average portfolio yields on debt investments for periods shown are the annualized rates of interest income recognized during the period divided by the average amortized cost of debt investments in the portfolio during the period. The calculation of weighted average portfolio yields on debt investments excludes any non-income producing debt investments, but includes debt investments on non-accrual status. Including non-income producing debt investments, the weighted average yield for the three months ended MarchJune 31,30, 2026 and 2025 was 12.8%12.3% and 13.6%,13.8%, respectively. Including non-income producing debt investments, the weighted average yield for the six months ended June 30, 2026 and 2025 was 12.5% and 13.7%, respectively. The weighted average yields reported for these periods are annualized and reflect the weighted average yields to maturities.

Total return based on NAV is the change in ending NAV per share plus distributions per share paid during the period assuming participation in our dividend reinvestment plan divided by the beginning NAV per share for such period. Total return based on stock price is the change in the ending stock price of our common stock plus distributions paid during the period assuming participation in our dividend reinvestment plan divided by the beginning stock price of our common stock for such period. For the three months ended MarchJune 31,30, 2026 and 2025, our total return during the periods based on the change in NAV plus distributions reinvested as of the respective distribution dates was 3.8%5.2% and 4.7%,4.8%, respectively, and our total return during the periods based on the change in stock price plus distributions reinvested as of the respective distribution dates was 3.2% and 5.0%, respectively. For the six months ended June 30, 2026 and 2025, our total return during the periods based on the change in NAV plus distributions reinvested as of the respective distribution dates was 9.2% and 9.7%, respectively, and our total return during the periods based on the change in stock price plus distributions reinvested as of the respective distribution dates was (20.017.4)% and (1.1)%,3.8%, respectively.

The table below shows our return on average total assets and return on average NAV for the three and six months ended MarchJune 31,30, 2026 and 2025:

As of MarchJune 31,30, 2026, our investment portfolio, valued at fair value in accordance with our Board-approved valuation policy, represented 97.3%96.5% of our total assets, as compared to 93.3% of our total assets as of December 31, 2025.

During the threesix months ended MarchJune 31,30, 2026, net cash usedprovided inby operating activities, consisting primarily of fundings and purchases of investments, net of principal prepayments and proceeds from investments and the items described in “Results of Operations,” was $6.4$10.4 million, and net cash used in financing activities was $31.9$42.9 million due primarily to the repayment of the 2026 Notes and $8.8$17.6 million in distributions paid, partially offset by net borrowings under the Credit Facility of $102.0$100.0 million and proceeds from the issuance of the 7.50% 2028 Notes. As of MarchJune 31,30, 2026, cash and cash equivalents, including restricted cash, were $9.0$14.8 million.

During the threesix months ended MarchJune 31,30, 2025, net cash used in operating activities, consisting primarily of purchases, sales and repayments of investments and the items described in “Results of Operations,” was $4.9$17.6 million, and net cash usedprovided inby financing activities was $32.1$1.4 million due primarily to the issuance of the 8.11% 2028 Notes and net borrowings under the Credit Facility, partially offset by the repayment of the 2025 Notes and $11.4$22.9 million in distributions paid, partially offset by the issuance of the 8.11% 2028 Notes.paid. As of MarchJune 31,30, 2025, cash and cash equivalents, including restricted cash, were $41.7$62.5 million.

As of MarchJune 31,30, 2026, we had $300.0 million in total commitments available under the Credit Facility, subject to various covenants and borrowing base requirements. The Credit Facility also includes an accordion feature, which allows us to increase the size of the Credit Facility to up to $400.0 million under certain circumstances. The revolving period under the Credit Facility is scheduled to expire on November 30, 2027, and the scheduled maturity date of the Credit Facility is May 30, 2029 (unless otherwise terminated earlier pursuant to its terms). As of MarchJune 31,30, 2026 borrowings under the Credit Facility bear interest at the sum of (i) a floating rate based on certain indices, including SOFR and commercial paper rates (subject to a floor of 0.50%), plus (ii) a margin of 2.75% if facility utilization is greater than or equal to 75%, 2.85% if utilization is greater than or equal to 50% but less than 75%, 3.00% if utilization is less than 50% and 4.5% on or after the end of the revolving period. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the terms of the Credit Facility.

As of MarchJune 31,30, 2026 and December 31, 2025, we had outstanding borrowings under the Credit Facility of $197.0$195.0 million and $95.0 million, respectively, excluding deferred credit facility costs of $4.3$4.0 million and $4.6 million, respectively, which is included in the consolidated statements of assets and liabilities. We had $103.0$105.0 million and $205.0 million of remaining capacity on our Credit Facility as of MarchJune 31,30, 2026 and December 31, 2025, respectively.

As of MarchJune 31,30, 2026 and December 31, 2025, we have recorded in the consolidated statements of assets and liabilities our liability for the 2027 Notes, net of deferred issuance costs, of $124.7$124.8 million and $124.7 million, respectively. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the 2027 Notes.

As of MarchJune 31,30, 2026 and December 31, 2025, we have recorded in the consolidated statements of assets and liabilities our liability for the 8.11% 2028 Notes, net of deferred issuance costs, of $49.5$49.6 million and $49.5 million, respectively. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the 8.11% 2028 Notes.

As of MarchJune 31,30, 2026, we have recorded in the consolidated statements of assets and liabilities our liability for the 7.50% 2028 Notes, net of deferred issuance costs, of $74.9$74.8 million. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the 7.50% 2028 Notes.

As of MarchJune 31,30, 2026, $56.5 million in shares remained available for sale under the Current ATM Program.

On June 21, 2018, our stockholders voted at a special meeting of stockholders to approve a proposal to authorize us to be subject to a reduced asset coverage ratio of at least 150% under the 1940 Act. As a result of the stockholder approval at the special meeting, effective June 22, 2018, our applicable minimum asset coverage ratio under the 1940 Act has been decreased to 150% from 200%. Thus, we are permitted under the 1940 Act, under specified conditions, to issue multiple classes of debt and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. As of MarchJune 31,30, 2026, our asset coverage for borrowed amounts was 179%.

The following table shows a summary of our payment obligations for repayment of debt as of MarchJune 31,30, 2026:

We are party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of MarchJune 31,30, 2026 and December 31, 2025, our unfunded commitments totaled $206.8$140.6 million and $260.4 million, respectively, of which $51.0$23.0 million and $50.7 million, respectively, was dependent upon the portfolio companies reaching certain milestones before the debt commitment becomes available to them.

The following table shows our unfunded commitments by portfolio company as of MarchJune 31,30, 2026 and December 31, 2025:

The following table shows additional information on our unfunded commitments regarding milestones and expirations as of MarchJune 31,30, 2026 and December 31, 2025:

As of MarchJune 31,30, 2026, our unfunded commitments to 2422 companies totaled $206.8$140.6 million. During the three and six months ended MarchJune 31,30, 2026, $28.4$48.1 million and $76.5 million in unfunded commitments expired or were terminated.

As of December 31, 2025, our unfunded commitments to 25 companies totaled $260.4 million. During the three and six months ended MarchJune 31,30, 2025, $36.5$13.8 million and $50.3 million, respectively, in unfunded commitments expired or were terminated.

The fair value at the inception of the delay draw credit agreements with our portfolio companies is equal to the fees and/or warrants received to enter into these agreements, taking into account the remaining terms of the agreements and the relevant counterparty’s credit profile. The unfunded commitment liability reflects the fair value of these future funding commitments. As of MarchJune 31,30, 2026 and December 31, 2025, the fair value for these unfunded commitments totaled $1.1$0.5 million and $1.8 million, respectively, and was included in “other accrued expenses and liabilities” in our consolidated statements of assets and liabilities.

The following table shows our cash distributions per share that have been authorized by our Board since our initial public offering to MarchJune 31,30, 2026. From March 5, 2014 (commencement of operations) to December 31, 2015, and during the years ended December 31, 2025, 2024, 2023, 2022, 2018 and 2017 distributions represent ordinary income as our earnings equaled or exceeded distributions. Approximately $0.24 per share of the distributions during the year ended December 31, 2016 represented a return of capital. During the years ended December 31, 2021, 2020 and 2019, distributions represent ordinary income and long term capital gains. Any future distributions to our stockholders may be for amounts less than our historical distributions, may be made less frequently than historical practices, and may be made in part cash and part stock (as per each stockholder’s election), subject to a limitation that the aggregate amount of cash to be distributed to all stockholders must be at least 20% of the aggregate declared distribution.