Company: OXLCZ
Filing Date: 2025-05-20
Form Type: N-CSR
Source: 0001213900-25-045605
Chunk: 29

Company: Oxford Lane Capital Corp.
Filing Date: 2025-05-20
Form: N-CSR
Chunk 29
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centive Fee). Pre -incentivefee net investment income includes accrued income that the Fund has not yet received in cash, such as the amount of any market discount it may accrete on debt instruments purchased below par value. Pre -incentivefee net investment income does not include any realized or unrealized capital gains or losses, and the Fund could incur Incentive Fees in periods when there is a net decrease in net assets from operations. Pre -incentivefee net investment income, expressed as a rate of return on the value of the Fund’s net assets at the end of the immediately preceding calendar quarter, is compared to a hurdle of 1.75% per quarter (7.00% annualized). For such purposes, the Fund’s quarterly rate of return is determined by dividing its pre -incentivenet investment income by its reported net assets as of the prior period end. The Fund’s pre -incentivefee net investment income used to calculate the Incentive Fee is also included in the amount of its gross assets used to calculate the 2.00% Management Fee. The Fund pays Oxford Lane Management an Incentive Fee with respect to the Fund’s pre -incentivefee net investment income in each calendar quarter as follows: •No Incentive Fee in any calendar quarter in which the Fund’s pre -incentivefee net investment income does not exceed the hurdle of 1.75%; •100% of Fund’s pre -incentivefee net investment income with respect to that portion of such pre -incentivefee net investment income, if any, that exceeds the hurdle but is less than 2.1875% in any calendar quarter (8.75% annualized). The Fund refers to this portion of its pre -incentivefee net investment income (which exceeds the hurdle but is less than 2.1875%) as the “catch -up”. The “catch -up” is meant to provide Oxford Lane Management with 20% of the Fund’s pre -incentivefee net investment income as if a hurdle did not apply if the net investment income exceeds 2.1875% in any calendar quarter; and •20% of the amount of the Fund’s pre -incentivefee net investment income, if any, that exceeds 2.1875% in any calendar quarter (8.75% annualized) is payable to Oxford Lane Management (once the hurdle is reached and the “catch -up” is achieved