The Company provides debt, including loans and equipment financings, to growth-stage companies, including venture capital-backed companies and companies with institutional equity investors, primarily in the United States. The Company’s investment strategy includes making investments consisting primarily of term loans and equipment financings, and, to a lesser extent, working capital loans, equity, and equity-related investments. In addition, the Company may obtain warrants or contingent exit fees at funding from many of its portfolio companies.

The Company’s debt securities primarily consist of direct investments in interest-bearing secured loans and equipment financings to privately held companies based in the United States. Secured loans are generally secured by a blanket first lien or a blanket second lien on the assets of the portfolio company. Equipment financings typically include a specific asset lien on mission-critical assets as well as a second lien on the assets of the portfolio company. These debt securities typically have a term of between three and five years from the original investment date. Certain of the debt securities are “covenant-lite” loans, which generally are loans that do not have a complete set of financial maintenance covenants and have covenants that are incurrence-based, meaning they are only tested and can only be breached following an affirmative action of the borrower rather than by a deterioration in the borrower’s financial condition. The equipment financings in the investment portfolio generally have fixed interest rates. The secured loans in the investment portfolio generally have floating interest rates subject to interest rate floors. Both equipment financings and secured loans generally include an EOT payment.

The specific terms of each debt security vary depending on the creditworthiness of the portfolio company and the projected value of the financed assets. Companies with stronger creditworthiness may receive an initial period of lower financing factor, which is analogous to an interest-only period on a traditional term loan. Equipment financings may include upfront interim payments and security deposits. Equipment financing arrangements have various structural protections, including customary default penalties, information and reporting rights, material adverse change or investor abandonment provisions, consent rights for any additions or changes to senior debt, and, as needed, intercreditor agreements with cross-default provisions to protect the Company’s second lien positions.

In connection with the Company’s debt investments, the Company may receive warrants in the portfolio company. Warrants received in connection with a debt investment typically include a potentially discounted contract

price to exercise, and thus, as a portfolio company appreciates in value, the Company may achieve additional investment return from this equity interest. The warrants typically contain provisions that protect the Company as a minority-interest holder, as well as secured or unsecured put rights, or rights to sell such securities back to the portfolio company, upon the occurrence of specified events. In certain cases, the Company may also obtain follow-up rights in connection with these equity interests, which allow the Company to participate in future financing rounds.

In specific circumstances, the Company may seek to make direct equity investments in situations where it is appropriate to align the interests of the Company with key management and stockholders of the portfolio company, and to allow for participation in the appreciation in the equity values of the portfolio company. These equity investments are generally made in connection with debt investments. The Company seeks to maintain fully diluted equity positions in its portfolio companies of 5% to 50% and may have controlling equity interests in some instances.

The Company’s portfolio investments are in companies conducting business in a variety of industries. Industry classifications have been updated to a preferred presentation and the prior year has been amended to conform with the new preferred presentation. The following table summarizes the composition of the Company’s portfolio investments by industry at cost and fair value and as a percentage of the total portfolio as of March 31, 2024 and December 31, 2023 (dollars in thousands):


	March 31, 2024										December 31, 2023
	Cost					Fair Value					Cost					Fair Value
Industry	Amount		%			Amount		%			Amount		%			Amount		%
Finance and Insurance	$	190,781		13.3	%	$	189,158		13.9	%	$	139,399		10.6	%	$	133,344		10.5	%
Green Technology		149,648		10.5	%		154,883		11.4	%		138,510		10.5	%		143,279		11.2	%
Space Technology		124,130		8.7	%		124,504		9.1	%		185,384		14.1	%		186,335		14.6	%
Consumer Products & Services		92,354		6.5	%		91,657		6.7	%		85,683		6.5	%		83,722		6.6	%
Real Estate Technology		93,027		6.6	%		89,264		6.5	%		94,878		7.2	%		91,344		7.2	%
Healthcare Technology		87,652		6.2	%		83,697		6.1	%		89,038		6.8	%		84,917		6.6	%
Food and Agriculture Technologies		84,125		5.9	%		79,608		5.8	%		90,967		6.9	%		88,707		7.0	%
Medical Devices		70,431		5.0	%		71,809		5.3	%		68,717		5.2	%		70,320		5.5	%
Artificial Intelligence & Automation		64,679		4.6	%		63,905		4.7	%		34,732		2.6	%		34,435		2.7	%
Biotechnology		56,665		4.0	%		57,399		4.2	%		56,173		4.3	%		55,810		4.4	%
SaaS		48,560		3.4	%		49,850		3.7	%		34,257		2.6	%		34,440		2.7	%
Marketing, Media, and Entertainment		47,688		3.4	%		46,526		3.4	%		49,145		3.7	%		47,526		3.7	%
Diagnostics & Tools		42,081		3.0	%		42,081		3.1	%		—		—			—		—
Education Technology		42,927		3.0	%		39,964		2.9	%		18,975		1.4	%		15,285		1.2	%
Connectivity		36,161		2.5	%		34,794		2.6	%		36,191		2.7	%		34,219		2.7	%
Human Resource Technology		31,246		2.2	%		30,708		2.3	%		31,142		2.4	%		30,595		2.4	%
Transportation Technology		43,633		3.1	%		28,955		2.1	%		45,024		3.4	%		39,532		3.1	%
Supply Chain Technology		31,426		2.2	%		25,368		1.9	%		30,414		2.3	%		24,556		1.9	%
Digital Assets Technology and Services		26,294		1.9	%		20,950		1.5	%		33,545		2.5	%		35,553		2.8	%
Industrials		18,102		1.3	%		19,181		1.4	%		21,995		1.7	%		23,113		1.8	%
Multi-Sector Holdings (1)		13,420		0.9	%		14,003		1.0	%		11,006		0.8	%		11,335		0.9	%
Construction Technology		24,968		1.8	%		5,598		0.4	%		24,141		1.8	%		6,813		0.5	%
Total	$	1,419,998		100.0	%	$	1,363,862		100.0	%	$	1,319,316		100.0	%	$	1,275,180		100.0	%

(1)

Multi-Sector Holdings consists of the Company's investment in Senior Credit Corp 2022 LLC, a joint venture between the Company and the JV Partner. This entity invests in secured loans and equipment financings to growth-stage companies that have been originated by the Company. The portfolio companies held by the JV

represent a diverse set of industry classifications, which are similar to those in which the Company invests directly. See “Note 1 – Organization and Basis of Presentation” for further discussion.

The geographic composition of the Company's investment portfolio is determined by the location of the corporate headquarters of the portfolio company. The following table summarizes the composition of the Company’s portfolio investments by geographic region of the United States and other countries at cost and fair value and as a percentage of the total portfolio as of March 31, 2024 and December 31, 2023 (dollars in thousands):


	March 31, 2024										December 31, 2023
	Cost					Fair Value					Cost					Fair Value
Geographic Region	Amount		%			Amount		%			Amount		%			Amount		%
United States:
West	$	451,413		31.9	%	$	436,480		32.1	%	$	468,917		35.5	%	$	464,909		36.5	%
Northeast		409,086		28.8	%		398,610		29.2	%		392,739		29.8	%		383,008		29.9	%
South		189,131		13.3	%		194,746		14.3	%		169,014		12.8	%		172,746		13.5	%
Mountain		135,732		9.6	%		128,827		9.4	%		118,126		9.0	%		110,681		8.7	%
Southeast		86,865		6.1	%		84,516		6.2	%		43,878		3.3	%		42,129		3.3	%
Midwest		84,336		5.9	%		76,810		5.6	%		64,535		4.9	%		56,945		4.5	%
Senior Credit Corp 2022 LLC (1)		13,421		0.9	%		14,004		1.0	%		11,006		0.8	%		11,335		0.9	%
International:
Western Europe		19,930		1.4	%		19,850		1.5	%		22,235		1.7	%		22,400		1.8	%
Canada		30,084		2.1	%		10,019		0.7	%		28,866		2.2	%		11,027		0.9	%
Total	$	1,419,998		100.0	%	$	1,363,862		100.0	%	$	1,319,316		100	%	$	1,275,180		100	%

(1)

Senior Credit Corp 2022 LLC is a joint venture between the Company and the JV Partner. This entity invests in secured loans and equipment financings to growth-stage companies that have been originated by the Company. The portfolio companies held by the JV represent a diverse set of geographical classifications, which are similar to those in which the Company invests directly. See “Note 1 – Organization and Basis of Presentation” for further discussion.

The following table summarizes the composition of the Company’s portfolio investments by investment type at cost and fair value and as a percentage of the total portfolio as of March 31, 2024 and December 31, 2023 (dollars in thousands):


	March 31, 2024										December 31, 2023
	Cost					Fair Value					Cost					Fair Value
Investment	Amount		%			Amount		%			Amount		%			Amount		%
Secured Loans	$	1,055,348		74.3	%	$	1,010,841		74.1	%	$	918,836		69.7	%	$	885,299		69.5	%
Equipment Financing		279,111		19.7	%		277,550		20.4	%		336,934		25.5	%		336,778		26.4	%
Warrants		32,868		2.3	%		39,930		2.9	%		30,244		2.3	%		33,527		2.6	%
Equity		52,671		3.7	%		35,541		2.6	%		33,302		2.5	%		19,576		1.5	%
Total	$	1,419,998		100.0	%	$	1,363,862		100.0	%	$	1,319,316		100.0	%	$	1,275,180		100.0	%

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

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

The Company manages its exposure to market risk through the use of risk management strategies and various analytical monitoring techniques.

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

The Company’s investments consist of growth-stage companies, many of which have relatively limited operating histories and may experience variation in operating results. Many of these companies conduct business in regulated industries and could be affected by changes in government regulations. Most of the Company’s borrowers will need additional capital to satisfy their continuing working capital needs and other requirements, and in many instances, to service the interest and principal payments on the debt.