##### Table of Contents





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q





(Mark One)

|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended March 31, 2016

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from
                     to

Commission file number 814-00861





Fidus
Investment Corporation

(Exact Name of Registrant as Specified in its Charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Maryland                                                       |  | 27-5017321                          
|(State or Other Jurisdiction of
Incorporation or Organization) |  | (I.R.S. Employer
Identification No.)
|                                                               | 
|1603 Orrington Avenue, Suite 1005
Evanston, Illinois           |  | 60201                               
|(Address of Principal Executive Offices)                       |  | (Zip Code)                          

(847) 859-3940

(Registrants telephone number, including area code)

n/a

(Former name, former
address and former fiscal year, if changed since last report)





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

Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    Yes   ̈    No   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  | x
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  |  ̈

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

As of May 4, 2016, the Registrant had outstanding 16,312,363 shares of common stock, $0.001 par value.









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##### Table of Contents

FIDUS INVESTMENT CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q



|                               |  |                                                                                                                        |    |  |    | 
|------------------------------ |  | ---------------------------------------------------------------------------------------------------------------------- | -- |  | -- | 
|PART I  FINANCIAL INFORMATION | 
|Item 1.                        |  | Financial Statements                                                                                                   |    |  | 1  | 
|                               |  | Consolidated Statements of Assets and Liabilities  March 
31, 2016 (unaudited) and December 31, 2015                  |    |  | 1  | 
|                               |  | Consolidated Statements of Operations  Three Months Ended March 
31, 2016 (unaudited) and 2015 (unaudited)            |    |  | 2  | 
|                               |  | Consolidated Statements of Changes in Net Assets  Three Months Ended March 31,
 2016 (unaudited) and 2015 (unaudited) |    |  | 3  | 
|                               |  | Consolidated Statements of Cash Flows  Three Months Ended March 
31, 2016 (unaudited) and 2015 (unaudited)            |    |  | 4  | 
|                               |  | Consolidated Schedules of Investments  March 
31, 2016 (unaudited) and December 31, 2015                              |    |  | 5  | 
|                               |  | Notes to Consolidated Financial Statements (unaudited)                                                                 |    |  | 20 | 
|Item 2.                        |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                  |    |  | 35 | 
|Item 3.                        |  | Quantitative and Qualitative Disclosures About Market Risk                                                             |    |  | 47 | 
|Item 4.                        |  | Controls and Procedures                                                                                                |    |  | 47 | 
|PART II  OTHER INFORMATION    | 
|Item 1.                        |  | Legal Proceedings                                                                                                      |    |  | 48 | 
|Item 1A.                       |  | Risk Factors                                                                                                           |    |  | 48 | 
|Item 2.                        |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                            |    |  | 48 | 
|Item 3.                        |  | Defaults Upon Senior Securities                                                                                        |    |  | 48 | 
|Item 4.                        |  | Mine Safety Disclosures                                                                                                |    |  | 48 | 
|Item 5.                        |  | Other Information                                                                                                      |    |  | 48 | 
|Item 6.                        |  | Exhibits                                                                                                               |    |  | 49 | 
|Signatures                     |  |                                                                                                                        | 50 | 
|Exhibit Index                  |  |                                                                                                                        | 51 | 



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##### Table of Contents

PART I  FINANCIAL INFORMATION

Item 1. Financial Statements.

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Assets and Liabilities

(in thousands, except shares and per share data)



|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------- | ------- | - | ---------------- | - | ------- | -
|                                                                                                                                                                              |  | March 31, 2016(unaudited) |         |   | December 31,2015 |  
|ASSETS                                                                                                                                                                        |  |                           |         |   |                  |   |         |  
|Investments, at fair value                                                                                                                                                    |  |                           |         |   |                  |   |         |  
|Control investments (cost: $12,042 and $12,042, respectively)                                                                                                                 |  | $                         |        |   |                  | $ | 618     |  
|Affiliate investments (cost: $105,693 and $105,930, respectively)                                                                                                             |  |                           | 113,292 |   |                  |   | 111,846 |  
|Non-control/non-affiliate investments (cost: $342,248 and $330,366, respectively)                                                                                             |  |                           | 342,390 |   |                  |   | 330,805 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total investments, at fair value (cost: $459,983 and $448,338, respectively)                                                                                                  |  |                           | 455,682 |   |                  |   | 443,269 |  
|Cash and cash equivalents                                                                                                                                                     |  |                           | 13,041  |   |                  |   | 31,657  |  
|Interest receivable                                                                                                                                                           |  |                           | 5,725   |   |                  |   | 4,520   |  
|Prepaid expenses and other assets                                                                                                                                             |  |                           | 1,099   |   |                  |   | 1,222   |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total assets                                                                                                                                                                  |  | $                         | 475,547 |   |                  | $ | 480,668 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|LIABILITIES                                                                                                                                                                   |  |                           |         |   |                  |   |         |  
|SBA debentures, net of deferred financing costs (Note 6)                                                                                                                      |  | $                         | 210,067 |   |                  | $ | 209,394 |  
|Borrowings under credit facility, net of deferred financing costs (Note 6)                                                                                                    |  |                           | 10,321  |   |                  |   | 14,734  |  
|Accrued interest and fees payable                                                                                                                                             |  |                           | 722     |   |                  |   | 2,840   |  
|Due to affiliates                                                                                                                                                             |  |                           | 5,565   |   |                  |   | 5,762   |  
|Taxes payable                                                                                                                                                                 |  |                           |        |   |                  |   | 400     |  
|Accounts payable and other liabilities                                                                                                                                        |  |                           | 147     |   |                  |   | 176     |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total liabilities                                                                                                                                                             |  |                           | 226,822 |   |                  |   | 233,306 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Commitments and contingencies                                                                                                                                                 |  |                           |         |   |                  |   |         |  
|NET ASSETS                                                                                                                                                                    |  |                           |         |   |                  |   |         |  
|Common stock, $0.001 par value (100,000,000 shares authorized, 16,312,363 and 16,300,732 shares
issued and outstanding at March 31, 2016 and December 31, 2015, respectively) |  |                           | 16      |   |                  |   | 16      |  
|Additional paid-in capital                                                                                                                                                    |  |                           | 246,487 |   |                  |   | 246,307 |  
|Undistributed net investment income                                                                                                                                           |  |                           | 14,612  |   |                  |   | 13,887  |  
|Accumulated net realized (loss) gain on investments, net of taxes and distributions                                                                                           |  |                           | (6,684  | ) |                  |   | (6,145  | )
|Accumulated net unrealized (depreciation) appreciation on investments                                                                                                         |  |                           | (5,706  | ) |                  |   | (6,703  | )
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total net assets                                                                                                                                                              |  |                           | 248,725 |   |                  |   | 247,362 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total liabilities and net assets                                                                                                                                              |  | $                         | 475,547 |   |                  | $ | 480,668 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Net asset value per common share                                                                                                                                              |  | $                         | 15.25   |   |                  | $ | 15.17   |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  

See Notes to Consolidated Financial Statements (unaudited).



1



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FIDUS INVESTMENT CORPORATION

Consolidated Statements of Operations (unaudited)

(in thousands, except shares and per share data)



|                                                                                  |  |                             |            |   |      |   |            |  
|--------------------------------------------------------------------------------- |  | --------------------------- | ---------- | - | ---- | - | ---------- | -
|                                                                                  |  | Three Months EndedMarch 31, |           
|                                                                                  |  | 2016                        |            |   | 2015 |  
|Investment Income:                                                                |  |                             |            |   |      |   |            |  
|Interest income                                                                   |  |                             |            |   |      |   |            |  
|Control investments                                                               |  | $                           |           |   |      | $ | 128        |  
|Affiliate investments                                                             |  |                             | 2,844      |   |      |   | 2,345      |  
|Non-control/non-affiliate investments                                             |  |                             | 10,603     |   |      |   | 9,450      |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Total interest income                                                             |  |                             | 13,447     |   |      |   | 11,923     |  
|Dividend income                                                                   |  |                             |            |   |      |   |            |  
|Affiliate investments                                                             |  |                             | 162        |   |      |   | 30         |  
|Non-control/non-affiliate investments                                             |  |                             | 81         |   |      |   | 107        |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Total dividend income                                                             |  |                             | 243        |   |      |   | 137        |  
|Fee income                                                                        |  |                             |            |   |      |   |            |  
|Affiliate investments                                                             |  |                             | 7          |   |      |   |           |  
|Non-control/non-affiliate investments                                             |  |                             | 968        |   |      |   | 764        |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Total fee income                                                                  |  |                             | 975        |   |      |   | 764        |  
|Interest on idle funds and other income                                           |  |                             | 26         |   |      |   | 14         |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Total investment income                                                           |  |                             | 14,691     |   |      |   | 12,838     |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Expenses:                                                                         |  |                             |            |   |      |   |            |  
|Interest and financing expenses                                                   |  |                             | 2,600      |   |      |   | 2,130      |  
|Base management fee                                                               |  |                             | 1,983      |   |      |   | 1,791      |  
|Incentive fee                                                                     |  |                             | 1,880      |   |      |   | 1,599      |  
|Administrative service expenses                                                   |  |                             | 321        |   |      |   | 368        |  
|Professional fees                                                                 |  |                             | 482        |   |      |   | 439        |  
|Other general and administrative expenses                                         |  |                             | 318        |   |      |   | 293        |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Total expenses                                                                    |  |                             | 7,584      |   |      |   | 6,620      |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Net investment income before income taxes                                         |  |                             | 7,107      |   |      |   | 6,218      |  
|Income tax provision (benefit)                                                    |  |                             | 25         |   |      |   | (11        | )
|                                                                                  |  |                             |            |   |      |   |            |  
|Net investment income                                                             |  |                             | 7,082      |   |      |   | 6,229      |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Net realized and unrealized gains (losses) on investments:                        |  |                             |            |   |      |   |            |  
|Realized (losses) on non-control/non-affiliate investments                        |  |                             | (310       | ) |      |   |           |  
|Net change in unrealized appreciation on investments                              |  |                             | 768        |   |      |   | 180        |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Net gain on investments                                                           |  |                             | 458        |   |      |   | 180        |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Net increase in net assets resulting from operations                              |  | $                           | 7,540      |   |      | $ | 6,409      |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Per common share data:                                                            |  |                             |            |   |      |   |            |  
|Net investment income per share-basic and diluted                                 |  | $                           | 0.43       |   |      | $ | 0.39       |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Net increase in net assets resulting from operation per share  basic and diluted |  | $                           | 0.46       |   |      | $ | 0.40       |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Dividends declared per share                                                      |  | $                           | 0.39       |   |      | $ | 0.38       |  
|                                                                                  |  |                             |            |   |      |   |            |  
|Weighted average number of shares outstanding  basic and diluted                 |  |                             | 16,301,499 |   |      |   | 16,060,057 |  
|                                                                                  |  |                             |            |   |      |   |            |  

See Notes to Consolidated Financial Statements (unaudited).



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FIDUS INVESTMENT CORPORATION

Consolidated Statements of Changes in Net Assets (unaudited)

(in thousands, except shares)



|                                                     |  |                 |            |  |          |   |    |                          |  |   |                                   |  |  |                                                                           |        |   |                                                                   |   |         |                 |  |   |        |   |  |   |         |  
|---------------------------------------------------- |  | --------------- | ---------- |  | -------- | - | -- | ------------------------ |  | - | --------------------------------- |  |  | ------------------------------------------------------------------------- | ------ | - | ----------------------------------------------------------------- | - | ------- | --------------- |  | - | ------ | - |  | - | ------- | -
|                                                     |  | Common Stock    |            |  |          |   |    |                          |  |   |                                   |  |  |                                                                           |       
|                                                     |  | Number ofshares |            |  | Parvalue |   |    | Additionalpaid incapital |  |   | Undistributednet investmentincome |  |  | Accumulatednet realized(loss) oninvestments,net of taxes anddistributions |        |   | Accumulatednet unrealized(depreciation)appreciation oninvestments |   |         | Total netassets | 
|Balances at December 31, 2014                        |  |                 | 16,051,037 |  |          | $ | 16 |                          |  | $ | 243,008                           |  |  | $                                                                         | 12,433 |   |                                                                   | $ | (15,999 | )               |  | $ | 3,805  |   |  | $ | 243,263 |  
|Public offerings of common stock, net of expenses    |  |                 | 49,193     |  |          |   |   |                          |  |   | 882                               |  |  |                                                                           |       |   |                                                                   |   |        |                 |  |   |       |   |  |   | 882     |  
|Shares issued under dividend reinvestment plan       |  |                 | 12,922     |  |          |   |   |                          |  |   | 213                               |  |  |                                                                           |       |   |                                                                   |   |        |                 |  |   |       |   |  |   | 213     |  
|Net increase in net assets resulting from operations |  |                 |           |  |          |   |   |                          |  |   |                                  |  |  |                                                                           | 6,229  |   |                                                                   |   |        |                 |  |   | 180    |   |  |   | 6,409   |  
|Dividends declared                                   |  |                 |           |  |          |   |   |                          |  |   |                                  |  |  |                                                                           | (6,099 | ) |                                                                   |   |        |                 |  |   |       |   |  |   | (6,099  | )
|                                                     |  |                 |            |  |          |   |    |                          |  |   |                                   |  |  |                                                                           |        |   |                                                                   |   |         |                 |  |   |        |   |  |   |         |  
|Balances at March 31, 2015                           |  |                 | 16,113,152 |  |          | $ | 16 |                          |  | $ | 244,103                           |  |  | $                                                                         | 12,563 |   |                                                                   | $ | (15,999 | )               |  | $ | 3,985  |   |  | $ | 244,668 |  
|                                                     |  |                 |            |  |          |   |    |                          |  |   |                                   |  |  |                                                                           |        |   |                                                                   |   |         |                 |  |   |        |   |  |   |         |  
|Balances at December 31, 2015                        |  |                 | 16,300,732 |  |          | $ | 16 |                          |  | $ | 246,307                           |  |  | $                                                                         | 13,887 |   |                                                                   | $ | (6,145  | )               |  | $ | (6,703 | ) |  | $ | 247,362 |  
|Public offerings of common stock, net of expenses    |  |                 |           |  |          |   |   |                          |  |   |                                  |  |  |                                                                           |       |   |                                                                   |   |        |                 |  |   |       |   |  |   |        |  
|Shares issued under dividend reinvestment plan       |  |                 | 11,631     |  |          |   |   |                          |  |   | 180                               |  |  |                                                                           |       |   |                                                                   |   |        |                 |  |   |       |   |  |   | 180     |  
|Net increase in net assets resulting from operations |  |                 |           |  |          |   |   |                          |  |   |                                  |  |  |                                                                           | 7,082  |   |                                                                   |   | (539    | )               |  |   | 997    |   |  |   | 7,540   |  
|Dividends declared                                   |  |                 |           |  |          |   |   |                          |  |   |                                  |  |  |                                                                           | (6,357 | ) |                                                                   |   |        |                 |  |   |       |   |  |   | (6,357  | )
|                                                     |  |                 |            |  |          |   |    |                          |  |   |                                   |  |  |                                                                           |        |   |                                                                   |   |         |                 |  |   |        |   |  |   |         |  
|Balances at March 31, 2016                           |  |                 | 16,312,363 |  |          | $ | 16 |                          |  | $ | 246,487                           |  |  | $                                                                         | 14,612 |   |                                                                   | $ | (6,684  | )               |  | $ | (5,706 | ) |  | $ | 248,725 |  
|                                                     |  |                 |            |  |          |   |    |                          |  |   |                                   |  |  |                                                                           |        |   |                                                                   |   |         |                 |  |   |        |   |  |   |         |  

See Notes to Consolidated Financial Statements (unaudited).



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FIDUS INVESTMENT CORPORATION

Consolidated Statements of Cash Flows (unaudited)

(in thousands)



|                                                                                                                           |  |                             |         |   |      |   |         |  
|-------------------------------------------------------------------------------------------------------------------------- |  | --------------------------- | ------- | - | ---- | - | ------- | -
|                                                                                                                           |  | Three Months EndedMarch 31, |        
|                                                                                                                           |  | 2016                        |         |   | 2015 |  
|Cash Flows from Operating Activities:                                                                                      |  |                             |         |   |      |   |         |  
|Net increase in net assets resulting from operations                                                                       |  | $                           | 7,540   |   |      | $ | 6,409   |  
|Adjustments to reconcile net increase in net assets resulting from operations to net cash (used
for) operating activities: |  |                             |         |   |      |   |         |  
|Net change in unrealized (appreciation) on investments                                                                     |  |                             | (768    | ) |      |   | (180    | )
|Realized losses on investments                                                                                             |  |                             | 310     |   |      |   |        |  
|Interest and dividend income paid-in-kind                                                                                  |  |                             | (1,087  | ) |      |   | (1,074  | )
|Accretion of original issue discount                                                                                       |  |                             | (60     | ) |      |   | (151    | )
|Accretion of loan origination fees                                                                                         |  |                             | (316    | ) |      |   | (212    | )
|Purchase of investments                                                                                                    |  |                             | (42,348 | ) |      |   | (39,561 | )
|Proceeds from sales and repayments of investments                                                                          |  |                             | 31,581  |   |      |   | 24,679  |  
|Proceeds from loan origination fees                                                                                        |  |                             | 275     |   |      |   | 250     |  
|Amortization of deferred financing costs                                                                                   |  |                             | 273     |   |      |   | 234     |  
|Changes in operating assets and liabilities:                                                                               |  |                             |         |   |      |   |         |  
|Interest receivable                                                                                                        |  |                             | (1,205  | ) |      |   | (975    | )
|Prepaid expenses and other assets                                                                                          |  |                             | 123     |   |      |   | 69      |  
|Accrued interest and fees payable                                                                                          |  |                             | (2,118  | ) |      |   | (1,753  | )
|Due to affiliates                                                                                                          |  |                             | (197    | ) |      |   | (161    | )
|Taxes payable                                                                                                              |  |                             | (400    | ) |      |   | (328    | )
|Accounts payable and other liabilities                                                                                     |  |                             | (29     | ) |      |   | (72     | )
|                                                                                                                           |  |                             |         |   |      |   |         |  
|Net cash (used for) operating activities                                                                                   |  |                             | (8,426  | ) |      |   | (12,826 | )
|                                                                                                                           |  |                             |         |   |      |   |         |  
|Cash Flows from Financing Activities:                                                                                      |  |                             |         |   |      |   |         |  
|Proceeds from stock offerings, net of expenses                                                                             |  |                             |        |   |      |   | 882     |  
|Proceeds received from SBA debentures                                                                                      |  |                             | 500     |   |      |   | 5,000   |  
|Net (repayments of) proceeds received from borrowings under credit facility                                                |  |                             | (4,500  | ) |      |   | 800     |  
|Payment of deferred financing costs                                                                                        |  |                             | (13     | ) |      |   | (921    | )
|Dividends paid to stockholders, including expenses                                                                         |  |                             | (6,177  | ) |      |   | (5,886  | )
|                                                                                                                           |  |                             |         |   |      |   |         |  
|Net cash (used for) financing activities                                                                                   |  |                             | (10,190 | ) |      |   | (125    | )
|                                                                                                                           |  |                             |         |   |      |   |         |  
|Net (decrease) in cash and cash equivalents                                                                                |  |                             | (18,616 | ) |      |   | (12,951 | )
|Cash and cash equivalents:                                                                                                 |  |                             |         |   |      |   |         |  
|Beginning of period                                                                                                        |  |                             | 31,657  |   |      |   | 29,318  |  
|                                                                                                                           |  |                             |         |   |      |   |         |  
|End of period                                                                                                              |  | $                           | 13,041  |   |      | $ | 16,367  |  
|                                                                                                                           |  |                             |         |   |      |   |         |  
|Supplemental disclosure of cash flow information:                                                                          |  |                             |         |   |      |   |         |  
|Cash payments for interest                                                                                                 |  | $                           | 4,445   |   |      | $ | 3,649   |  
|Cash payments for taxes, net of tax refunds received                                                                       |  | $                           | 425     |   |      | $ | 317     |  
|Non-cash financing activities:                                                                                             |  |                             |         |   |      |   |         |  
|Shares issued under dividend reinvestment plan                                                                             |  | $                           | 180     |   |      | $ | 213     |  

See Notes to Consolidated Financial Statements (unaudited).



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FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2016

(In
thousands, except shares)



|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|----------------------------------------------------- |  | ---------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | ---------- |  | - | ------------------- | - |  |  | - | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | Fair Value |  |   | Percentof NetAssets |  
|Aerospace & Defense Manufacturing                     |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|FDS Avionics Corp.                                    |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|(dba Flight Display Systems)                          |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Subordinated Note                                     |  | 12.3%/0.0%       |  | 4/1/2020   |  | $               | 5,200  |  |      | $ | 5,181  |            |  | $ | 5,098               |   |  |  |   |  
|Common Equity (200 units) (i)                         |  |                  |  |            |  |                 |        |  |      |   | 2,000  |            |  |   | 1,200               |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 7,181  |            |  |   | 6,298               |   |  |  | 3 | %
|                                                      |  |                  |  |            |  |                
|Lightning Diversion Systems, LLC                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Senior Secured Loan                                   |  | 9.5%/0.0%        |  | 12/20/2018 |  |                 | 9,198  |  |      |   | 9,168  |            |  |   | 9,198               |   |  |  |   |  
|Revolving Loan ($1,000 commitment)
(h)                |  | 9.5%/0.0%        |  | 12/20/2018 |  |                 |       |  |      |   | (1     | )          |  |   | (1                  | ) |  |  |   |  
|Common Equity (600,000 units)                         |  |                  |  |            |  |                 |        |  |      |   |       |            |  |   | 2,414               |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 9,167  |            |  |   | 11,611              |   |  |  | 5 | %
|                                                      |  |                  |  |            |  |                
|Malabar International (k)                             |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Subordinated Note (j)                                 |  | 12.5%/2.5%       |  | 5/21/2017  |  |                 | 7,497  |  |      |   | 7,486  |            |  |   | 7,497               |   |  |  |   |  
|Preferred Equity (1,494 shares) (f)                   |  | 6.0%/0.0%        |  | 11/21/2017 |  |                 |        |  |      |   | 1,995  |            |  |   | 5,018               |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 9,481  |            |  |   | 12,515              |   |  |  | 5 | %
|                                                      |  |                  |  |            |  |                
|Simplex Manufacturing Co.                             |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Subordinated Note                                     |  | 14.0%/0.0%       |  | 5/1/2016   |  |                 | 4,550  |  |      |   | 4,550  |            |  |   | 4,550               |   |  |  |   |  
|Warrant (24 shares)                                   |  |                  |  |            |  |                 |        |  |      |   | 710    |            |  |   | 3,589               |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 5,260  |            |  |   | 8,139               |   |  |  | 3 | %
|                                                      |  |                  |  |            |  |                
|Steward Holding LLC (k)                               |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|(dba Steward Advanced Materials)                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Subordinated Note                                     |  | 12.0%/2.3%       |  | 5/12/2021  |  |                 | 7,061  |  |      |   | 7,028  |            |  |   | 7,028               |   |  |  |   |  
|Common Equity (1,000,000 units)                       |  |                  |  |            |  |                 |        |  |      |   | 1,000  |            |  |   | 1,000               |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 8,028  |            |  |   | 8,028               |   |  |  | 3 | %
|                                                      |  |                  |  |            |  |                
|Apparel Distribution                                  |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Jacob Ash Holdings, Inc.                              |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Subordinated Note (j)                                 |  | 13.0%/4.0%       |  | 6/30/2018  |  |                 | 4,000  |  |      |   | 3,994  |            |  |   | 4,000               |   |  |  |   |  
|Subordinated Note                                     |  | 13.0%/0.0%       |  | 6/30/2018  |  |                 | 963    |  |      |   | 956    |            |  |   | 963                 |   |  |  |   |  
|Preferred Equity (66,138 shares) (f)                  |  | 0.0%/15.0%       |  | 6/30/2018  |  |                 |        |  |      |   | 959    |            |  |   | 955                 |   |  |  |   |  
|Warrant (63,492 shares)                               |  |                  |  |            |  |                 |        |  |      |   | 67     |            |  |   |                    |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 5,976  |            |  |   | 5,918               |   |  |  | 2 | %
|                                                      |  |                  |  |            |  |                
|Building Products Manufacturing                       |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|The Wolf Organization, LLC                            |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Common Equity (175 shares)                            |  |                  |  |            |  |                 |        |  |      |   | 1,750  |            |  |   | 3,260               |   |  |  | 1 | %
|                                                      |  |                  |  |            |  |                
|US GreenFiber, LLC                                    |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Subordinated Note (j)                                 |  | 12.5%/0.0%       |  | 1/2/2019   |  |                 | 14,000 |  |      |   | 13,956 |            |  |   | 14,000              |   |  |  |   |  
|Common Equity (1,667 units) (g)(i)                    |  |                  |  |            |  |                 |        |  |      |   | 500    |            |  |   | 1,119               |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 14,456 |            |  |   | 15,119              |   |  |  | 6 | %
|                                                      |  |                  |  |            |  |                
|Business Services                                     |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Inflexxion, Inc. (k)                                  |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Senior Secured Loan                                   |  | 13.0%/0.0%       |  | 12/16/2019 |  |                 | 3,950  |  |      |   | 3,932  |            |  |   | 2,524               |   |  |  |   |  
|Revolving Loan ($1,000 commitment)
(i)                |  | 13.0%/0.0%       |  | 12/16/2019 |  |                 | 150    |  |      |   | 146    |            |  |   | 96                  |   |  |  |   |  
|Preferred Equity (1,400 units)                        |  |                  |  |            |  |                 |        |  |      |   | 1,400  |            |  |   |                    |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 5,478  |            |  |   | 2,620               |   |  |  | 1 | %
|                                                      |  |                  |  |            |  |                
|Plymouth Rock Energy, LLC                             |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |   |  |  |   |  
|Senior Secured Loan                                   |  | 11.8%/0.0%       |  | 5/14/2017  |  |                 | 6,000  |  |      |   | 5,987  |            |  |   | 6,000               |   |  |  | 2 | %



5



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2016

(In
thousands, except shares)



|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|----------------------------------------------------- |  | ---------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | ---------- |  | - | ------------------- |  |  |  | - | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | Fair Value |  |   | Percentof NetAssets | 
|Vanguard Dealer Services, L.L.C.                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note ($9,850 commitment)
(j)             |  | 12.3%/0.0%       |  | 1/30/2021  |  | $               | 7,350  |  |      | $ | 7,313  |            |  | $ | 7,350               |  |  |  |   |  
|Common Equity (6,000 shares)                          |  |                  |  |            |  |                 |        |  |      |   | 600    |            |  |   | 798                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 7,913  |            |  |   | 8,148               |  |  |  | 3 | %
|                                                      |  |                  |  |            |  |                
|Capital Equipment Manufacturing                       |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Thermoforming Technology Group LLC                    |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.5%/0.0%       |  | 9/14/2021  |  |                 | 13,500 |  |      |   | 13,433 |            |  |   | 13,433              |  |  |  |   |  
|Common Equity (3,500 units) (g)(i)                    |  |                  |  |            |  |                 |        |  |      |   | 350    |            |  |   | 350                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 13,783 |            |  |   | 13,783              |  |  |  | 6 | %
|                                                      |  |                  |  |            |  |                
|Commercial Cleaning                                   |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Premium Franchise Brands, LLC                         |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Preferred Equity (1,054,619 shares)                   |  |                  |  |            |  |                 |        |  |      |   | 832    |            |  |   | 775                 |  |  |  | 0 | %
|                                                      |  |                  |  |            |  |                
|Component Manufacturing                               |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Channel Technologies Group, LLC                       |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Preferred Equity (612 units) (g)(i)                   |  |                  |  |            |  |                 |        |  |      |   | 939    |            |  |   | 59                  |  |  |  |   |  
|Common Equity (612,432 units) (g)(i)                  |  |                  |  |            |  |                 |        |  |      |   |       |            |  |   |                    |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 939    |            |  |   | 59                  |  |  |  | 0 | %
|                                                      |  |                  |  |            |  |                
|Toledo Molding & Die, Inc.                            |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note (i)                                 |  | 10.5%/0.0%       |  | 12/18/2018 |  |                 | 10,000 |  |      |   | 9,898  |            |  |   | 10,000              |  |  |  | 4 | %
|                                                      |  |                  |  |            |  |                
|Consumer Products                                     |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Grindmaster Corporation                               |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 11.5%/0.0%       |  | 10/31/2019 |  |                 | 10,500 |  |      |   | 10,467 |            |  |   | 10,500              |  |  |  | 4 | %
|                                                      |  |                  |  |            |  |                
|World Wide Packaging, LLC (k)                         |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note (i)                                 |  | 12.0%/1.0%       |  | 10/26/2018 |  |                 | 10,290 |  |      |   | 10,267 |            |  |   | 10,290              |  |  |  |   |  
|Common Equity (1,517,573 units)
(g)(i)                |  |                  |  |            |  |                 |        |  |      |   | 1,518  |            |  |   | 2,322               |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 11,785 |            |  |   | 12,612              |  |  |  | 5 | %
|                                                      |  |                  |  |            |  |                
|Electronic Components Supplier                        |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Apex Microtechnology, Inc. (k)                        |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Warrant (2,293 shares)                                |  |                  |  |            |  |                 |        |  |      |   | 220    |            |  |   | 368                 |  |  |  |   |  
|Common Equity (11,690 shares)                         |  |                  |  |            |  |                 |        |  |      |   | 1,169  |            |  |   | 1,842               |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 1,389  |            |  |   | 2,210               |  |  |  | 1 | %
|                                                      |  |                  |  |            |  |                
|Financial Services                                    |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|National Truck Protection Co., Inc.                   |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Senior Secured Loan                                   |  | 13.5%/2.0%       |  | 9/13/2018  |  |                 | 11,089 |  |      |   | 11,046 |            |  |   | 11,089              |  |  |  |   |  
|Common Equity (1,109 shares)                          |  |                  |  |            |  |                 |        |  |      |   | 758    |            |  |   | 1,924               |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 11,804 |            |  |   | 13,013              |  |  |  | 5 | %
|                                                      |  |                  |  |            |  |                
|Healthcare Products                                   |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Allied 100 Group, Inc.                                |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note (j)                                 |  | 11.5%/0.0%       |  | 5/26/2020  |  |                 | 13,000 |  |      |   | 12,951 |            |  |   | 13,000              |  |  |  |   |  
|Common Equity (1,250,000 units) (i)                   |  |                  |  |            |  |                 |        |  |      |   | 1,250  |            |  |   | 1,362               |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 14,201 |            |  |   | 14,362              |  |  |  | 6 | %
|                                                      |  |                  |  |            |  |                
|Anatrace Products, LLC                                |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 13.0%/1.3%       |  | 6/23/2021  |  |                 | 6,500  |  |      |   | 6,481  |            |  |   | 6,481               |  |  |  |   |  
|Common Equity (360,000 shares)
(i)                    |  |                  |  |            |  |                 |        |  |      |   |       |            |  |   | 214                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 6,481  |            |  |   | 6,695               |  |  |  | 3 | %



6



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2016

(In
thousands, except shares)



|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|----------------------------------------------------- |  | ---------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | ---------- |  | - | ------------------- |  |  |  | - | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | Fair Value |  |   | Percentof NetAssets | 
|MedPlast, LLC                                         |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note (i)                                 |  | 11.0%/1.5%       |  | 3/31/2019  |  | $               | 10,377 |  |      | $ | 10,336 |            |  | $ | 10,377              |  |  |  |   |  
|Preferred Equity (188 shares) (f)(i)                  |  | 0.0%/8.0%        |  | 3/31/2019  |  |                 |        |  |      |   | 227    |            |  |   | 228                 |  |  |  |   |  
|Common Equity (3,728 shares) (i)                      |  |                  |  |            |  |                 |        |  |      |   | 62     |            |  |   | 210                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 10,625 |            |  |   | 10,815              |  |  |  | 4 | %
|                                                      |  |                  |  |            |  |                
|OMC Investors, LLC                                    |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|(dba Ohio Medical Corporation)                        |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/0.0%       |  | 7/15/2021  |  |                 | 10,000 |  |      |   | 9,904  |            |  |   | 9,904               |  |  |  |   |  
|Common Equity (5,000 shares) (f)                      |  | 0.0%/8.0%        |  |            |  |                 |        |  |      |   | 508    |            |  |   | 508                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 10,412 |            |  |   | 10,412              |  |  |  | 4 | %
|                                                      |  |                  |  |            |  |                
|Pfanstiehl, Inc. (k)                                  |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/1.5%       |  | 9/29/2018  |  |                 | 6,208  |  |      |   | 6,181  |            |  |   | 6,208               |  |  |  |   |  
|Common Equity (8,500 units) (i)                       |  |                  |  |            |  |                 |        |  |      |   | 850    |            |  |   | 5,722               |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 7,031  |            |  |   | 11,930              |  |  |  | 5 | %
|                                                      |  |                  |  |            |  |                
|Six Month Smiles Holdings, Inc.                       |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note (i)                                 |  | 12.0%/1.8%       |  | 7/31/2020  |  |                 | 8,142  |  |      |   | 8,114  |            |  |   | 7,909               |  |  |  | 3 | %
|                                                      |  |                  |  |            |  |                
|Healthcare Services                                   |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Medsurant Holdings, LLC (k)                           |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.3%/0.0%       |  | 6/18/2021  |  |                 | 6,267  |  |      |   | 6,214  |            |  |   | 6,214               |  |  |  |   |  
|Preferred Equity (126,662 units) (g)                  |  |                  |  |            |  |                 |        |  |      |   | 1,346  |            |  |   | 1,522               |  |  |  |   |  
|Warrant (505,176 units) (g)                           |  |                  |  |            |  |                 |        |  |      |   | 4,516  |            |  |   | 5,262               |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 12,076 |            |  |   | 12,998              |  |  |  | 5 | %
|                                                      |  |                  |  |            |  |                
|Microbiology Research Associates, Inc.
(k)            |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Senior Secured Loan                                   |  | 6.0%/0.0%        |  | 5/13/2020  |  |                 | 3,750  |  |      |   | 3,735  |            |  |   | 3,750               |  |  |  |   |  
|Revolving Loan ($500 commitment)
(h)(i)               |  | 6.0%/0.0%        |  | 5/13/2020  |  |                 |       |  |      |   | (2     | )          |  |   |                    |  |  |  |   |  
|Subordinated Note                                     |  | 12.5%/0.0%       |  | 11/13/2020 |  |                 | 6,250  |  |      |   | 6,224  |            |  |   | 6,250               |  |  |  |   |  
|Common Equity (1,000,000 units) (i)                   |  |                  |  |            |  |                 |        |  |      |   | 1,000  |            |  |   | 1,447               |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 10,957 |            |  |   | 11,447              |  |  |  | 5 | %
|                                                      |  |                  |  |            |  |                
|Oaktree Medical Centre, P.C.                          |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|(dba Pain Management Associates)                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Senior Secured Loan (i)                               |  | 11.5%/0.0%       |  | 1/1/2018   |  |                 | 571    |  |      |   | 590    |            |  |   | 566                 |  |  |  |   |  
|Senior Secured Loan (i)                               |  | 7.0%/12.0%       |  | 1/1/2018   |  |                 | 5,556  |  |      |   | 5,697  |            |  |   | 5,235               |  |  |  |   |  
|Revolving Loan ($1,250 commitment)
(i)                |  | 11.5%/0.0%       |  | 1/1/2018   |  |                 | 1,255  |  |      |   | 1,265  |            |  |   | 1,255               |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 7,552  |            |  |   | 7,056               |  |  |  | 3 | %
|                                                      |  |                  |  |            |  |                
|United Biologics, LLC                                 |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/2.0%       |  | 3/5/2017   |  |                 | 8,566  |  |      |   | 8,436  |            |  |   | 8,267               |  |  |  |   |  
|Preferred Equity (98,377 units)
(g)(i)                |  |                  |  |            |  |                 |        |  |      |   | 1,069  |            |  |   | 33                  |  |  |  |   |  
|Warrant (57,469 units)                                |  |                  |  |            |  |                 |        |  |      |   | 566    |            |  |   | 17                  |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 10,071 |            |  |   | 8,317               |  |  |  | 3 | %
|                                                      |  |                  |  |            |  |                
|Industrial Cleaning & Coatings                        |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|K2 Industrial Services, Inc.                          |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 11.8%/2.8%       |  | 5/23/2017  |  |                 | 17,248 |  |      |   | 17,222 |            |  |   | 17,248              |  |  |  |   |  
|Preferred Equity - Series A (1,200 shares)            |  |                  |  |            |  |                 |        |  |      |   | 1,200  |            |  |   | 597                 |  |  |  |   |  
|Preferred Equity - Series B (74 shares)               |  |                  |  |            |  |                 |        |  |      |   | 68     |            |  |   | 101                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 18,490 |            |  |   | 17,946              |  |  |  | 7 | %
|                                                      |  |                  |  |            |  |                
|Information Technology Services                       |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|FTH Acquisition Corp. VII                             |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 13.0%/0.0%       |  | 3/9/2017   |  |                 | 8,308  |  |      |   | 8,308  |            |  |   | 8,137               |  |  |  |   |  
|Preferred Equity (887,122 shares)                     |  |                  |  |            |  |                 |        |  |      |   | 887    |            |  |   | 128                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 9,195  |            |  |   | 8,265               |  |  |  | 3 | %



7



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2016

(In
thousands, except shares)



|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|----------------------------------------------------- |  | ---------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | ---------- |  | - | ------------------- |  |  |  | - | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | Fair Value |  |   | Percentof NetAssets | 
|inthinc Technology Solutions, Inc.                    |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note ($5,000 commitment)                 |  | 12.5%/0.0%       |  | 4/24/2020  |  | $               | 4,000  |  |      | $ | 3,980  |            |  | $ | 3,980               |  |  |  |   |  
|Subordinated Note                                     |  | 0.0%/12.5%       |  | 4/24/2020  |  |                 | 1,072  |  |      |   | 904    |            |  |   | 904                 |  |  |  |   |  
|Royalty Rights                                        |  |                  |  | 4/24/2020  |  |                 |        |  |      |   | 185    |            |  |   | 185                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 5,069  |            |  |   | 5,069               |  |  |  | 2 | %
|                                                      |  |                  |  |            |  |                
|Laundry Services                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Caldwell & Gregory, LLC                               |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 11.5%/1.0%       |  | 11/30/2018 |  |                 | 1,543  |  |      |   | 1,528  |            |  |   | 1,543               |  |  |  |   |  
|Subordinated Note                                     |  | 0.0%/12.0%       |  | 5/31/2019  |  |                 | 4,194  |  |      |   | 4,032  |            |  |   | 4,194               |  |  |  |   |  
|Common Equity (500,000 units) (g)                     |  |                  |  |            |  |                 |        |  |      |   | 500    |            |  |   | 597                 |  |  |  |   |  
|Warrant (242,121 units) (g)                           |  |                  |  |            |  |                 |        |  |      |   | 242    |            |  |   | 289                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 6,302  |            |  |   | 6,623               |  |  |  | 3 | %
|                                                      |  |                  |  |            |  |                
|Oil & Gas Services                                    |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|IOS Acquisitions, Inc. (n)                            |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Common Equity (2,152 units) (i)                       |  |                  |  |            |  |                 |        |  |      |   | 109    |            |  |   | 21                  |  |  |  | 0 | %
|                                                      |  |                  |  |            |  |                
|Pinnergy, Ltd.                                        |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note (j)                                 |  | 10.5%/1.8%       |  | 1/24/2020  |  |                 | 20,000 |  |      |   | 19,948 |            |  |   | 12,103              |  |  |  | 5 | %
|                                                      |  |                  |  |            |  |                
|Printing Services                                     |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Brook & Whittle Limited                               |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/4.8%       |  | 12/31/2016 |  |                 | 7,748  |  |      |   | 7,748  |            |  |   | 7,584               |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/2.0%       |  | 12/31/2016 |  |                 | 2,307  |  |      |   | 2,307  |            |  |   | 2,214               |  |  |  |   |  
|Warrant (1,161 shares)                                |  |                  |  |            |  |                 |        |  |      |   | 285    |            |  |   |                    |  |  |  |   |  
|Common Equity - Series A (148 shares)                 |  |                  |  |            |  |                 |        |  |      |   | 110    |            |  |   |                    |  |  |  |   |  
|Common Equity - Series D (527 shares)                 |  |                  |  |            |  |                 |        |  |      |   | 53     |            |  |   | 93                  |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 10,503 |            |  |   | 9,891               |  |  |  | 4 | %
|                                                      |  |                  |  |            |  |                
|Promotional Products                                  |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Hub Acquisition Sub, LLC                              |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|(dba Hub Pen)                                         |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Subordinated Note (j)                                 |  | 12.3%/0.0%       |  | 9/23/2021  |  |                 | 11,350 |  |      |   | 11,294 |            |  |   | 11,294              |  |  |  |   |  
|Common Equity (7,500 units)                           |  |                  |  |            |  |                 |        |  |      |   | 750    |            |  |   | 750                 |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 12,044 |            |  |   | 12,044              |  |  |  | 5 | %
|                                                      |  |                  |  |            |  |                
|Restaurants                                           |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|ACFP Management, Inc. (n)                             |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Common Equity (1,000,000 units) (i)                   |  |                  |  |            |  |                 |        |  |      |   |       |            |  |   |                    |  |  |  | 0 | %
|                                                      |  |                  |  |            |  |                
|Cardboard Box LLC                                     |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|(dba Anthonys Coal Fired Pizza)                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Common Equity (521,021 units) (i)                     |  |                  |  |            |  |                 |        |  |      |   | 521    |            |  |   | 521                 |  |  |  | 0 | %
|                                                      |  |                  |  |            |  |                
|Restaurant Finance Co, LLC                            |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Senior Secured Loan (j)                               |  | 12.0%/4.0%       |  | 7/31/2020  |  |                 | 8,880  |  |      |   | 8,846  |            |  |   | 8,880               |  |  |  | 4 | %
|                                                      |  |                  |  |            |  |                
|Retail                                                |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|EBL, LLC (EbLens)                                     |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |   |  
|Common Equity (750,000 units) (g)(i)                  |  |                  |  |            |  |                 |        |  |      |   | 750    |            |  |   | 1,699               |  |  |  | 1 | %



8



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2016

(In
thousands, except shares)



|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|----------------------------------------------------- |  | ---------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | ---------- |  | - | ------------------- |  |  |  | -- | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | Fair Value |  |   | Percentof NetAssets | 
|Retail Cleaning                                       |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Paramount Building Solutions, LLC
(l)                 |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Subordinated Note (m)                                 |  | 0.0%/18.0%       |  | 12/31/2017 |  | $               | 625    |  |      | $ | 625    |            |  | $ |                    |  |  |  |    |  
|Subordinated Note (m)                                 |  | 0.0%/15.0%       |  | 12/31/2017 |  |                 | 275    |  |      |   | 275    |            |  |   |                    |  |  |  |    |  
|Subordinated Note (m)                                 |  | 0.0%/10.0%       |  | 12/31/2017 |  |                 | 1,376  |  |      |   | 1,376  |            |  |   |                    |  |  |  |    |  
|Subordinated Note (m)                                 |  | 0.0%/14.0%       |  | 12/31/2017 |  |                 | 2,927  |  |      |   | 2,927  |            |  |   |                    |  |  |  |    |  
|Warrant (1,086,035 units) (g)                         |  |                  |  |            |  |                 |        |  |      |   |       |            |  |   |                    |  |  |  |    |  
|Preferred Equity (5,000,000 units)
(g)                |  |                  |  |            |  |                 |        |  |      |   | 5,339  |            |  |   |                    |  |  |  |    |  
|Common Equity (107,143 units) (g)                     |  |                  |  |            |  |                 |        |  |      |   | 1,500  |            |  |   |                    |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 12,042 |            |  |   |                    |  |  |  | 0  | %
|                                                      |  |                  |  |            |  |                
|Safety Products Manufacturing                         |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Safety Products Group, LLC (k)                        |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Subordinated Note                                     |  | 12.0%/1.5%       |  | 12/30/2018 |  |                 | 10,000 |  |      |   | 9,976  |            |  |   | 10,000              |  |  |  |    |  
|Preferred Equity (749 units) (g)(i)                   |  |                  |  |            |  |                 |        |  |      |   | 749    |            |  |   | 845                 |  |  |  |    |  
|Common Equity (676 units) (g)(i)                      |  |                  |  |            |  |                 |        |  |      |   | 1      |            |  |   |                    |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 10,726 |            |  |   | 10,845              |  |  |  | 4  | %
|                                                      |  |                  |  |            |  |                
|Specialty Chemicals                                   |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|FAR Research Inc. (k)                                 |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Senior Secured Loan (j)                               |  | 11.8%/1.0%       |  | 3/31/2019  |  |                 | 7,466  |  |      |   | 7,443  |            |  |   | 7,466               |  |  |  |    |  
|Revolving Loan ($1,750 commitment)
(i)                |  | 11.8%/1.0%       |  | 3/31/2019  |  |                 | 137    |  |      |   | 132    |            |  |   | 136                 |  |  |  |    |  
|Common Equity (10 units)                              |  |                  |  |            |  |                 |        |  |      |   | 1,000  |            |  |   | 125                 |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 8,575  |            |  |   | 7,727               |  |  |  | 3  | %
|                                                      |  |                  |  |            |  |                
|Specialty Cracker Manufacturing                       |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Westminster Cracker Company, Inc.
(k)(n)              |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Common Equity (1,307,262 units)                       |  |                  |  |            |  |                 |        |  |      |   |       |            |  |   | 191                 |  |  |  | 0  | %
|                                                      |  |                  |  |            |  |                
|Specialty Distribution                                |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Carlson Systems Holdings, Inc.                        |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Subordinated Note (j)                                 |  | 12.0%/0.0%       |  | 5/20/2020  |  |                 | 21,000 |  |      |   | 20,917 |            |  |   | 21,000              |  |  |  |    |  
|Common Equity (15,000 units) (i)                      |  |                  |  |            |  |                 |        |  |      |   | 1,500  |            |  |   | 2,725               |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 22,417 |            |  |   | 23,725              |  |  |  | 10 | %
|                                                      |  |                  |  |            |  |                
|Virginia Tile Company, LLC                            |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Subordinated Note (j)                                 |  | 12.3%/0.0%       |  | 5/19/2020  |  |                 | 12,000 |  |      |   | 11,954 |            |  |   | 12,000              |  |  |  |    |  
|Common Equity (20 shares)                             |  |                  |  |            |  |                 |        |  |      |   | 250    |            |  |   | 744                 |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 12,204 |            |  |   | 12,744              |  |  |  | 5  | %
|                                                      |  |                  |  |            |  |                
|Transportation Services                               |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Cavallo Bus Lines Holdings, LLC                       |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Subordinated Note                                     |  | 12.0%/3.0%       |  | 4/26/2021  |  |                 | 8,250  |  |      |   | 8,212  |            |  |   | 8,212               |  |  |  | 3  | %
|                                                      |  |                  |  |            |  |                
|US Pack Logistics LLC                                 |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Subordinated Note                                     |  | 12.0%/1.8%       |  | 9/27/2020  |  |                 | 10,345 |  |      |   | 10,303 |            |  |   | 10,345              |  |  |  |    |  
|Common Equity (5,357 units) (g)(i)                    |  |                  |  |            |  |                 |        |  |      |   | 583    |            |  |   | 514                 |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 10,886 |            |  |   | 10,859              |  |  |  | 4  | %
|                                                      |  |                  |  |            |  |                
|Worldwide Express Operations, LLC                     |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|Subordinated Note                                     |  | 11.5%/1.0%       |  | 8/1/2020   |  |                 | 17,338 |  |      |   | 17,216 |            |  |   | 17,338              |  |  |  |    |  
|Common Equity (2,500,000 units)
(g)(i)                |  |                  |  |            |  |                 |        |  |      |   | 2,500  |            |  |   | 4,425               |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   |        |            |  |   |                     |  |  |  |    |  
|                                                      |  |                  |  |            |  |                 |        |  |      |   | 19,716 |            |  |   | 21,763              |  |  |  | 9  | %



9



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2016

(In
thousands, except shares)



|                                                      |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|----------------------------------------------------- |  | ---------------- |  | ---------- |  | --------------- | ----- |  | ---- | - | ------- | ---------- |  | - | -------------------- |  |  |  | --- | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)Cash/PIK |  | Maturity   |  | PrincipalAmount |       |  | Cost |   |         | Fair Value |  |   | Percent ofNet Assets | 
|Utility Equipment Manufacturing                       |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|Mirage Trailers LLC (k)                               |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|Senior Secured Loan (j)(e)                            |  | 12.5%/0.0%       |  | 11/25/2020 |  | $               | 8,601 |  |      | $ | 8,518   |            |  | $ | 8,518                |  |  |  |     |  
|Common Equity (2,500,000 shares)                      |  |                  |  |            |  |                 |       |  |      |   | 2,477   |            |  |   | 2,477                |  |  |  |     |  
|                                                      |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|                                                      |  |                  |  |            |  |                 |       |  |      |   | 10,995  |            |  |   | 10,995               |  |  |  | 4   | %
|                                                      |  |                  |  |            |  |                
|Trantech Radiator Products, Inc.
(k)                  |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|Subordinated Note (i)                                 |  | 12.0%/1.8%       |  | 5/4/2017   |  |                 | 8,494 |  |      |   | 8,484   |            |  |   | 8,494                |  |  |  |     |  
|Common Equity (6,875 shares) (i)                      |  |                  |  |            |  |                 |       |  |      |   | 688     |            |  |   | 680                  |  |  |  |     |  
|                                                      |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|                                                      |  |                  |  |            |  |                 |       |  |      |   | 9,172   |            |  |   | 9,174                |  |  |  | 4   | %
|                                                      |  |                  |  |            |  |                
|Vending Equipment Manufacturing                       |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|Ice House America, LLC                                |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|Subordinated Note (i)                                 |  | 12.0%/3.5%       |  | 1/1/2020   |  |                 | 4,135 |  |      |   | 3,951   |            |  |   | 3,806                |  |  |  |     |  
|Warrant (1,957,895 units) (g)(i)                      |  |                  |  |            |  |                 |       |  |      |   | 216     |            |  |   | 30                   |  |  |  |     |  
|                                                      |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|                                                      |  |                  |  |            |  |                 |       |  |      |   | 4,167   |            |  |   | 3,836                |  |  |  | 2   | %
|                                                      |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  
|Total Investments                                     |  |                  |  |            |  |                 |       |  |      | $ | 459,983 |            |  | $ | 455,682              |  |  |  | 183 | %
|                                                      |  |                  |  |            |  |                 |       |  |      |   |         |            |  |   |                      |  |  |  |     |  



|(a) | See Note 3 to the consolidated financial statements for portfolio composition by geographic location.
|--- | -----------------------------------------------------------------------------------------------------

|(b) | Equity ownership may be held in shares or units of companies related to the portfolio companies.
|--- | ------------------------------------------------------------------------------------------------

|(c) | All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of March 31, 2016. Generally, payment-in-kind interest can be paid-in-kind or all in cash.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The investment bears interest at a variable rate that is determined by reference to one-month LIBOR, which is reset monthly. The interest rate is set as one-month LIBOR + 11.5% and is subject to a 12.5% interest rate
floor. The Company has provided the interest rate in effect as of March 31, 2016.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Income producing. Maturity date, if any, represents mandatory redemption date.
|--- | ------------------------------------------------------------------------------

|(g) | Investment is held by a wholly-owned subsidiary of the Company.
|--- | ---------------------------------------------------------------

|(h) | The entire commitment was unfunded at March 31, 2016. As such, no interest is being earned on this investment.
|--- | --------------------------------------------------------------------------------------------------------------

|(i) | Investment pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Companys obligations
under the Credit Facility (see Note 6 to the consolidated financial statements).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | The portion of the investment not held by the Funds is pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company
other than the Companys obligations under the Credit Facility (see Note 6 to the consolidated financial statements).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) | As defined in the 1940 Act, the Company is deemed to be an Affiliated Person of this portfolio company because it owns 5% or more of the portfolio companys outstanding voting securities or it has the
power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was an Affiliated Person are detailed in Note 3 to the consolidated financial statements.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(l) | As defined in the 1940 Act, the Company is deemed to be both an Affiliated Person of and Control this portfolio company because it owns 25% or more of the portfolio companys outstanding
voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are
detailed in Note 3 to the consolidated financial statements.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(m) | Investment was on non-accrual status as of March 31, 2016, meaning the Company has ceased recognizing interest income on the investment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------

|(n) | Investment in portfolio company that has sold its operations and is in the process of winding down.
|--- | ---------------------------------------------------------------------------------------------------

See Notes to Consolidated Financial Statements (unaudited).



10



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2015

(In thousands, except shares)



|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|----------------------------------------------------- |  | ----------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | --------- |  | - | ------------------- | - |  |  | - | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)
Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | FairValue |  |   | Percentof NetAssets |  
|Aerospace & Defense Manufacturing                     |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|FDS Avionics Corp.                                    |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|(dba Flight Display Systems)                          |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Subordinated Note                                     |  | 12.3%/0.0%        |  | 4/1/2020   |  | $               | 5,200  |  |      | $ | 5,180  |           |  | $ | 5,200               |   |  |  |   |  
|Common Equity (200 units) (i)                         |  |                   |  |            |  |                 |        |  |      |   | 2,000  |           |  |   | 1,468               |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 7,180  |           |  |   | 6,668               |   |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Lightning Diversion Systems, LLC                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Senior Secured Loan                                   |  | 9.5%/0.0%         |  | 12/20/2018 |  |                 | 9,198  |  |      |   | 9,165  |           |  |   | 9,198               |   |  |  |   |  
|Revolving Loan ($1,000 commitment)
(h)                |  | 9.5%/0.0%         |  | 12/20/2018 |  |                 |       |  |      |   | (1     | )         |  |   | (1                  | ) |  |  |   |  
|Common Equity (600,000 units)                         |  |                   |  |            |  |                 |        |  |      |   |       |           |  |   | 2,429               |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 9,164  |           |  |   | 11,626              |   |  |  | 5 | %
|                                                      |  |                   |  |            |  |                
|Malabar International (k)                             |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Subordinated Note (j)                                 |  | 12.5%/2.5%        |  | 5/21/2017  |  |                 | 7,450  |  |      |   | 7,436  |           |  |   | 7,450               |   |  |  |   |  
|Preferred Equity (1,494 shares) (f)                   |  | 6.0%/0.0%         |  | 11/21/2017 |  |                 |        |  |      |   | 1,994  |           |  |   | 4,808               |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 9,430  |           |  |   | 12,258              |   |  |  | 5 | %
|                                                      |  |                   |  |            |  |                
|Simplex Manufacturing Co.                             |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Subordinated Note                                     |  | 14.0%/0.0%        |  | 5/1/2016   |  |                 | 4,550  |  |      |   | 4,550  |           |  |   | 4,550               |   |  |  |   |  
|Warrant (24 shares)                                   |  |                   |  |            |  |                 |        |  |      |   | 710    |           |  |   | 3,359               |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 5,260  |           |  |   | 7,909               |   |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Steward Holding LLC (k)                               |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|(dba Steward Advanced Materials)                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Subordinated Note                                     |  | 12.0%/2.3%        |  | 5/12/2021  |  |                 | 7,022  |  |      |   | 6,987  |           |  |   | 6,987               |   |  |  |   |  
|Common Equity (1,000,000 units)                       |  |                   |  |            |  |                 |        |  |      |   | 1,000  |           |  |   | 1,000               |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 7,987  |           |  |   | 7,987               |   |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Apparel Distribution                                  |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Jacob Ash Holdings, Inc.                              |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Subordinated Note (j)                                 |  | 13.0%/4.0%        |  | 6/30/2018  |  |                 | 4,000  |  |      |   | 3,994  |           |  |   | 4,000               |   |  |  |   |  
|Subordinated Note                                     |  | 13.0%/0.0%        |  | 6/30/2018  |  |                 | 963    |  |      |   | 956    |           |  |   | 963                 |   |  |  |   |  
|Preferred Equity (66,138 shares) (f)                  |  | 0.0%/15.0%        |  | 6/30/2018  |  |                 |        |  |      |   | 924    |           |  |   | 926                 |   |  |  |   |  
|Warrant (63,492 shares)                               |  |                   |  |            |  |                 |        |  |      |   | 67     |           |  |   |                    |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 5,941  |           |  |   | 5,889               |   |  |  | 2 | %
|                                                      |  |                   |  |            |  |                
|Building Products Manufacturing                       |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|The Wolf Organization, LLC                            |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Common Equity (175 shares)                            |  |                   |  |            |  |                 |        |  |      |   | 1,750  |           |  |   | 2,514               |   |  |  | 1 | %
|                                                      |  |                   |  |            |  |                
|US GreenFiber, LLC                                    |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Subordinated Note (j)                                 |  | 12.5%/0.0%        |  | 1/2/2019   |  |                 | 14,000 |  |      |   | 13,952 |           |  |   | 14,000              |   |  |  |   |  
|Common Equity (1,667 units) (g)(i)                    |  |                   |  |            |  |                 |        |  |      |   | 500    |           |  |   | 1,170               |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 14,452 |           |  |   | 15,170              |   |  |  | 6 | %
|                                                      |  |                   |  |            |  |                
|Business Services                                     |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Inflexxion, Inc. (k)                                  |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|Senior Secured Loan                                   |  | 12.5%/0.0%        |  | 12/16/2019 |  |                 | 3,950  |  |      |   | 3,931  |           |  |   | 3,470               |   |  |  |   |  
|Revolving Loan ($1,000 commitment)
(i)                |  | 12.5%/0.0%        |  | 12/16/2019 |  |                 | 150    |  |      |   | 146    |           |  |   | 132                 |   |  |  |   |  
|Preferred Equity (1,400 units)                        |  |                   |  |            |  |                 |        |  |      |   | 1,400  |           |  |   |                    |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |   |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 5,477  |           |  |   | 3,602               |   |  |  | 1 | %



11



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2015

(In thousands, except shares)



|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|----------------------------------------------------- |  | ----------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | --------- |  | - | ------------------- |  |  |  | - | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)
Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | FairValue |  |   | Percentof NetAssets | 
|Plymouth Rock Energy, LLC                             |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan                                   |  | 11.8%/0.0%        |  | 5/14/2017  |  | $               | 6,000  |  |      | $ | 5,984  |           |  | $ | 6,000               |  |  |  | 2 | %
|                                                      |  |                   |  |            |  |                
|Stagnito Partners, LLC                                |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|(dba Stagnito Business Information)                   |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan (i)                               |  | 12.0%/0.0%        |  | 6/30/2018  |  |                 | 6,361  |  |      |   | 6,290  |           |  |   | 6,361               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Vanguard Dealer Services, L.L.C.                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note ($9,850 commitment)
(j)             |  | 12.3%/0.0%        |  | 1/30/2021  |  |                 | 7,350  |  |      |   | 7,310  |           |  |   | 7,310               |  |  |  |   |  
|Common Equity (6,000 shares)                          |  |                   |  |            |  |                 |        |  |      |   | 600    |           |  |   | 600                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 7,910  |           |  |   | 7,910               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Commercial Cleaning                                   |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Premium Franchise Brands, LLC                         |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Preferred Equity (1,054,619 shares)                   |  |                   |  |            |  |                 |        |  |      |   | 832    |           |  |   | 717                 |  |  |  | 0 | %
|                                                      |  |                   |  |            |  |                
|Component Manufacturing                               |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Channel Technologies Group, LLC                       |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 11.0%/1.8%        |  | 4/10/2019  |  |                 | 7,000  |  |      |   | 6,963  |           |  |   | 6,253               |  |  |  |   |  
|Preferred Equity (612 units) (g)(i)                   |  |                   |  |            |  |                 |        |  |      |   | 1,139  |           |  |   | 548                 |  |  |  |   |  
|Common Equity (612,432 units) (g)(i)                  |  |                   |  |            |  |                 |        |  |      |   |       |           |  |   |                    |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 8,102  |           |  |   | 6,801               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Toledo Molding & Die, Inc.                            |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note (i)                                 |  | 10.5%/0.0%        |  | 12/18/2018 |  |                 | 10,000 |  |      |   | 9,889  |           |  |   | 10,000              |  |  |  | 4 | %
|                                                      |  |                   |  |            |  |                
|Consumer Products                                     |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Grindmaster Corporation                               |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 11.5%/0.0%        |  | 10/31/2019 |  |                 | 10,500 |  |      |   | 10,465 |           |  |   | 10,500              |  |  |  | 4 | %
|                                                      |  |                   |  |            |  |                
|World Wide Packaging, LLC (k)                         |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note (i)                                 |  | 12.0%/1.0%        |  | 10/26/2018 |  |                 | 10,265 |  |      |   | 10,239 |           |  |   | 10,277              |  |  |  |   |  
|Common Equity (1,517,573 units)
(g)(i)                |  |                   |  |            |  |                 |        |  |      |   | 1,518  |           |  |   | 2,043               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 11,757 |           |  |   | 12,320              |  |  |  | 5 | %
|                                                      |  |                   |  |            |  |                
|Electronic Components Supplier                        |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Apex Microtechnology, Inc. (k)                        |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Warrant (2,293 shares)                                |  |                   |  |            |  |                 |        |  |      |   | 220    |           |  |   | 274                 |  |  |  |   |  
|Common Equity (11,690 shares)                         |  |                   |  |            |  |                 |        |  |      |   | 1,169  |           |  |   | 1,425               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 1,389  |           |  |   | 1,699               |  |  |  | 1 | %
|                                                      |  |                   |  |            |  |                
|Financial Services                                    |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|National Truck Protection Co., Inc.                   |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan                                   |  | 13.5%/2.0%        |  | 9/13/2018  |  |                 | 11,989 |  |      |   | 11,944 |           |  |   | 11,989              |  |  |  |   |  
|Common Equity (1,109 shares)                          |  |                   |  |            |  |                 |        |  |      |   | 758    |           |  |   | 1,705               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 12,702 |           |  |   | 13,694              |  |  |  | 6 | %
|                                                      |  |                   |  |            |  |                
|Healthcare Products                                   |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Allied 100 Group, Inc.                                |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note (j)                                 |  | 11.5%/0.0%        |  | 5/26/2020  |  |                 | 13,000 |  |      |   | 12,948 |           |  |   | 13,000              |  |  |  |   |  
|Common Equity (1,250,000 units) (i)                   |  |                   |  |            |  |                 |        |  |      |   | 1,250  |           |  |   | 1,223               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 14,198 |           |  |   | 14,223              |  |  |  | 6 | %
|                                                      |  |                   |  |            |  |                
|Anatrace Products, LLC                                |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 13.0%/1.3%        |  | 6/23/2021  |  |                 | 6,500  |  |      |   | 6,480  |           |  |   | 6,480               |  |  |  |   |  
|Common Equity (360,000 shares) (i)                    |  |                   |  |            |  |                 |        |  |      |   |       |           |  |   | 148                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 6,480  |           |  |   | 6,628               |  |  |  | 3 | %



12



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2015

(In thousands, except shares)



|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|----------------------------------------------------- |  | ----------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | --------- |  | - | ------------------- |  |  |  | - | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)
Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | FairValue |  |   | Percentof NetAssets | 
|MedPlast, LLC                                         |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note (i)                                 |  | 11.0%/1.5%        |  | 3/31/2019  |  | $               | 10,338 |  |      | $ | 10,294 |           |  | $ | 10,338              |  |  |  |   |  
|Preferred Equity (188 shares) (f)(i)                  |  | 0.0%/8.0%         |  | 3/31/2019  |  |                 |        |  |      |   | 223    |           |  |   | 223                 |  |  |  |   |  
|Common Equity (3,728 shares) (i)                      |  |                   |  |            |  |                 |        |  |      |   | 62     |           |  |   | 103                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 10,579 |           |  |   | 10,664              |  |  |  | 4 | %
|                                                      |  |                   |  |            |  |                
|Pfanstiehl, Inc. (k)                                  |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/2.0%        |  | 9/29/2018  |  |                 | 6,208  |  |      |   | 6,178  |           |  |   | 6,208               |  |  |  |   |  
|Common Equity (8,500 units) (i)                       |  |                   |  |            |  |                 |        |  |      |   | 850    |           |  |   | 4,280               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 7,028  |           |  |   | 10,488              |  |  |  | 4 | %
|                                                      |  |                   |  |            |  |                
|Six Month Smiles Holdings, Inc.                       |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note (i)                                 |  | 12.0%/1.8%        |  | 7/31/2020  |  |                 | 8,106  |  |      |   | 8,077  |           |  |   | 8,106               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Healthcare Services                                   |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Continental Anesthesia Management, LLC                |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan                                   |  | 10.0%/4.0%        |  | 4/15/2016  |  |                 | 10,676 |  |      |   | 10,676 |           |  |   | 10,676              |  |  |  |   |  
|Warrant (263 shares)                                  |  |                   |  |            |  |                 |        |  |      |   | 276    |           |  |   |                    |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 10,952 |           |  |   | 10,676              |  |  |  | 4 | %
|                                                      |  |                   |  |            |  |                
|Medsurant Holdings, LLC (k)                           |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.3%/0.0%        |  | 6/18/2021  |  |                 | 6,267  |  |      |   | 6,211  |           |  |   | 6,211               |  |  |  |   |  
|Preferred Equity (126,662 units) (g)                  |  |                   |  |            |  |                 |        |  |      |   | 1,346  |           |  |   | 1,515               |  |  |  |   |  
|Warrant (505,176 units) (g)                           |  |                   |  |            |  |                 |        |  |      |   | 4,516  |           |  |   | 5,237               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 12,073 |           |  |   | 12,963              |  |  |  | 5 | %
|                                                      |  |                   |  |            |  |                
|Microbiology Research Associates, Inc.
(k)            |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan                                   |  | 6.0%/0.0%         |  | 5/13/2020  |  |                 | 3,750  |  |      |   | 3,734  |           |  |   | 3,750               |  |  |  |   |  
|Revolving Loan ($500 commitment)
(h)(i)               |  | 6.0%/0.0%         |  | 5/13/2020  |  |                 |       |  |      |   | (2     | )         |  |   |                    |  |  |  |   |  
|Subordinated Note                                     |  | 12.5%/0.0%        |  | 11/13/2020 |  |                 | 6,250  |  |      |   | 6,222  |           |  |   | 6,250               |  |  |  |   |  
|Common Equity (1,000,000 units) (i)                   |  |                   |  |            |  |                 |        |  |      |   | 1,000  |           |  |   | 1,444               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 10,954 |           |  |   | 11,444              |  |  |  | 5 | %
|                                                      |  |                   |  |            |  |                
|Oaktree Medical Centre, P.C.                          |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|(dba Pain Management Associates)                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan (i)                               |  | 8.5%/0.0%         |  | 1/1/2018   |  |                 | 560    |  |      |   | 570    |           |  |   | 589                 |  |  |  |   |  
|Senior Secured Loan (i)                               |  | 16.0%/0.0%        |  | 1/1/2018   |  |                 | 5,379  |  |      |   | 5,458  |           |  |   | 5,454               |  |  |  |   |  
|Revolving Loan ($500 commitment) (i)                  |  | 8.5%/0.0%         |  | 1/1/2018   |  |                 | 250    |  |      |   | 257    |           |  |   | 263                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 6,285  |           |  |   | 6,306               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|United Biologics, LLC                                 |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/2.0%        |  | 3/5/2017   |  |                 | 8,523  |  |      |   | 8,360  |           |  |   | 7,932               |  |  |  |   |  
|Preferred Equity (98,377 units)
(g)(i)                |  |                   |  |            |  |                 |        |  |      |   | 1,069  |           |  |   |                    |  |  |  |   |  
|Warrant (57,469 units)                                |  |                   |  |            |  |                 |        |  |      |   | 566    |           |  |   |                    |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 9,995  |           |  |   | 7,932               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Industrial Cleaning & Coatings                        |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|K2 Industrial Services, Inc.                          |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 8.8%/6.4%         |  | 5/23/2017  |  |                 | 17,118 |  |      |   | 17,086 |           |  |   | 16,718              |  |  |  |   |  
|Preferred Equity - Series A (1,200 shares)            |  |                   |  |            |  |                 |        |  |      |   | 1,200  |           |  |   | 271                 |  |  |  |   |  
|Preferred Equity - Series B (74 shares)               |  |                   |  |            |  |                 |        |  |      |   | 68     |           |  |   | 78                  |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 18,354 |           |  |   | 17,067              |  |  |  | 7 | %
|                                                      |  |                   |  |            |  |                
|Information Technology Services                       |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|FTH Acquisition Corp. VII                             |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 13.0%/0.0%        |  | 2/28/2017  |  |                 | 8,352  |  |      |   | 8,352  |           |  |   | 8,236               |  |  |  |   |  
|Preferred Equity (887,122 shares)                     |  |                   |  |            |  |                 |        |  |      |   | 887    |           |  |   |                    |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 9,239  |           |  |   | 8,236               |  |  |  | 3 | %



13



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2015

(In thousands, except shares)



|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|----------------------------------------------------- |  | ----------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | --------- |  | - | ------------------- |  |  |  | - | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)
Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | FairValue |  |   | Percentof NetAssets | 
|inthinc Technology Solutions, Inc.                    |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note ($5,000 commitment)                 |  | 12.5%/0.0%        |  | 4/24/2020  |  | $               | 4,000  |  |      | $ | 3,979  |           |  | $ | 3,979               |  |  |  |   |  
|Subordinated Note                                     |  | 0.0%/12.5%        |  | 4/24/2020  |  |                 | 1,039  |  |      |   | 861    |           |  |   | 861                 |  |  |  |   |  
|Royalty Rights                                        |  |                   |  | 4/24/2020  |  |                 |        |  |      |   | 185    |           |  |   | 185                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 5,025  |           |  |   | 5,025               |  |  |  | 2 | %
|                                                      |  |                   |  |            |  |                
|Laundry Services                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Caldwell & Gregory, LLC                               |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 11.5%/1.0%        |  | 11/30/2018 |  |                 | 1,539  |  |      |   | 1,523  |           |  |   | 1,539               |  |  |  |   |  
|Subordinated Note                                     |  | 0.0%/12.0%        |  | 5/31/2019  |  |                 | 4,072  |  |      |   | 3,897  |           |  |   | 4,072               |  |  |  |   |  
|Common Equity (500,000 units) (g)                     |  |                   |  |            |  |                 |        |  |      |   | 500    |           |  |   | 651                 |  |  |  |   |  
|Warrant (242,121 units) (g)                           |  |                   |  |            |  |                 |        |  |      |   | 242    |           |  |   | 316                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 6,162  |           |  |   | 6,578               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Oil & Gas Services                                    |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|IOS Acquisitions, Inc. (n)                            |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Common Equity (2,152 units) (i)                       |  |                   |  |            |  |                 |        |  |      |   | 109    |           |  |   | 21                  |  |  |  | 0 | %
|                                                      |  |                   |  |            |  |                
|Pinnergy, Ltd.                                        |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note (j)                                 |  | 10.5%/1.8%        |  | 1/24/2020  |  |                 | 20,000 |  |      |   | 19,945 |           |  |   | 16,440              |  |  |  | 7 | %
|                                                      |  |                   |  |            |  |                
|Printing Services                                     |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Brook & Whittle Limited                               |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/4.8%        |  | 12/31/2016 |  |                 | 7,655  |  |      |   | 7,655  |           |  |   | 7,361               |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/2.0%        |  | 12/31/2016 |  |                 | 2,296  |  |      |   | 2,296  |           |  |   | 2,151               |  |  |  |   |  
|Warrant (1,051 shares)                                |  |                   |  |            |  |                 |        |  |      |   | 285    |           |  |   |                    |  |  |  |   |  
|Common Equity - Series A (148 shares)                 |  |                   |  |            |  |                 |        |  |      |   | 110    |           |  |   |                    |  |  |  |   |  
|Common Equity - Series D (527 shares)                 |  |                   |  |            |  |                 |        |  |      |   | 53     |           |  |   | 77                  |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 10,399 |           |  |   | 9,589               |  |  |  | 4 | %
|                                                      |  |                   |  |            |  |                
|Restaurants                                           |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|ACFP Management, Inc. (n)                             |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Common Equity (1,000,000 units) (i)                   |  |                   |  |            |  |                 |        |  |      |   |       |           |  |   |                    |  |  |  | 0 | %
|                                                      |  |                   |  |            |  |                
|Cardboard Box LLC                                     |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|(dba Anthonys Coal Fired Pizza)                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Common Equity (521,021 units) (i)                     |  |                   |  |            |  |                 |        |  |      |   | 521    |           |  |   | 521                 |  |  |  | 0 | %
|                                                      |  |                   |  |            |  |                
|Restaurant Finance Co, LLC                            |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan ($10,500 commitment)
(j)          |  | 12.0%/4.0%        |  | 7/31/2020  |  |                 | 8,443  |  |      |   | 8,410  |           |  |   | 8,443               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Retail                                                |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|EBL, LLC (EbLens)                                     |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Common Equity (750,000 units) (g)(i)                  |  |                   |  |            |  |                 |        |  |      |   | 750    |           |  |   | 1,389               |  |  |  | 1 | %
|                                                      |  |                   |  |            |  |                
|Retail Cleaning                                       |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Paramount Building Solutions, LLC
(l)                 |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note (m)                                 |  | 0.0%/18.0%        |  | 12/31/2017 |  |                 | 625    |  |      |   | 625    |           |  |   | 618                 |  |  |  |   |  
|Subordinated Note (m)                                 |  | 0.0%/15.0%        |  | 12/31/2017 |  |                 | 275    |  |      |   | 275    |           |  |   |                    |  |  |  |   |  
|Subordinated Note (m)                                 |  | 0.0%/10.0%        |  | 12/31/2017 |  |                 | 1,376  |  |      |   | 1,376  |           |  |   |                    |  |  |  |   |  
|Subordinated Note (m)                                 |  | 0.0%/14.0%        |  | 12/31/2017 |  |                 | 2,927  |  |      |   | 2,927  |           |  |   |                    |  |  |  |   |  
|Warrant (1,086,035 units) (g)                         |  |                   |  |            |  |                 |        |  |      |   |       |           |  |   |                    |  |  |  |   |  
|Preferred Equity (5,000,000 units)
(g)                |  |                   |  |            |  |                 |        |  |      |   | 5,339  |           |  |   |                    |  |  |  |   |  
|Common Equity (107,143 units) (g)                     |  |                   |  |            |  |                 |        |  |      |   | 1,500  |           |  |   |                    |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 12,042 |           |  |   | 618                 |  |  |  | 0 | %



14



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2015

(In thousands, except shares)



|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|----------------------------------------------------- |  | ----------------- |  | ---------- |  | --------------- | ------ |  | ---- | - | ------ | --------- |  | - | ------------------- |  |  |  | - | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)
Cash/PIK |  | Maturity   |  | PrincipalAmount |        |  | Cost |   |        | FairValue |  |   | Percentof NetAssets | 
|Safety Products Manufacturing                         |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Safety Products Group, LLC (k)                        |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/1.5%        |  | 12/30/2018 |  | $               | 10,000 |  |      | $ | 9,974  |           |  | $ | 10,000              |  |  |  |   |  
|Preferred Equity (749 units) (g)(i)                   |  |                   |  |            |  |                 |        |  |      |   | 749    |           |  |   | 834                 |  |  |  |   |  
|Common Equity (676 units) (g)(i)                      |  |                   |  |            |  |                 |        |  |      |   | 1      |           |  |   |                    |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 10,724 |           |  |   | 10,834              |  |  |  | 4 | %
|                                                      |  |                   |  |            |  |                
|Specialty Chemicals                                   |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|FAR Research Inc. (k)                                 |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan (j)                               |  | 11.8%/1.0%        |  | 3/31/2019  |  |                 | 7,448  |  |      |   | 7,423  |           |  |   | 7,448               |  |  |  |   |  
|Revolving Loan ($1,750 commitment)
(i)                |  | 11.8%/1.0%        |  | 3/31/2019  |  |                 | 137    |  |      |   | 131    |           |  |   | 136                 |  |  |  |   |  
|Common Equity (10 units)                              |  |                   |  |            |  |                 |        |  |      |   | 1,000  |           |  |   | 161                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 8,554  |           |  |   | 7,745               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|Specialty Cracker Manufacturing                       |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Westminster Cracker Company, Inc.
(k)(n)              |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Common Equity (1,307,262 units)                       |  |                   |  |            |  |                 |        |  |      |   |       |           |  |   | 191                 |  |  |  | 0 | %
|                                                      |  |                   |  |            |  |                
|Specialty Distribution                                |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Carlson Systems Holdings, Inc.                        |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note (j)                                 |  | 12.0%/0.0%        |  | 5/20/2020  |  |                 | 21,000 |  |      |   | 20,912 |           |  |   | 21,000              |  |  |  |   |  
|Common Equity (15,000 units) (i)                      |  |                   |  |            |  |                 |        |  |      |   | 1,500  |           |  |   | 2,079               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 22,412 |           |  |   | 23,079              |  |  |  | 9 | %
|                                                      |  |                   |  |            |  |                
|Virginia Tile Company, LLC                            |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note (j)                                 |  | 12.3%/0.0%        |  | 5/19/2020  |  |                 | 12,000 |  |      |   | 11,952 |           |  |   | 12,000              |  |  |  |   |  
|Common Equity (20 shares)                             |  |                   |  |            |  |                 |        |  |      |   | 250    |           |  |   | 559                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 12,202 |           |  |   | 12,559              |  |  |  | 5 | %
|                                                      |  |                   |  |            |  |                
|Telecommunication Services                            |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|X5 Opco LLC                                           |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan                                   |  | 12.0%/0.0%        |  | 3/24/2020  |  |                 | 5,500  |  |      |   | 5,477  |           |  |   | 5,665               |  |  |  |   |  
|Revolving Loan ($500 commitment) (h)                  |  | 12.0%/0.0%        |  | 3/24/2020  |  |                 |       |  |      |   |       |           |  |   |                    |  |  |  |   |  
|Preferred Equity (5,000 units)
(f)(g)(i)              |  | 0.0%/8.0%         |  |            |  |                 |        |  |      |   | 531    |           |  |   | 350                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 6,008  |           |  |   | 6,015               |  |  |  | 2 | %
|                                                      |  |                   |  |            |  |                
|Transportation Services                               |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Cavallo Bus Lines Holdings, LLC                       |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/3.0%        |  | 4/26/2021  |  |                 | 8,250  |  |      |   | 8,210  |           |  |   | 8,210               |  |  |  | 3 | %
|                                                      |  |                   |  |            |  |                
|US Pack Logistics LLC                                 |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 12.0%/1.8%        |  | 9/27/2020  |  |                 | 10,299 |  |      |   | 10,255 |           |  |   | 10,299              |  |  |  |   |  
|Common Equity (5,357 units) (g)(i)                    |  |                   |  |            |  |                 |        |  |      |   | 536    |           |  |   | 483                 |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 10,791 |           |  |   | 10,782              |  |  |  | 4 | %
|                                                      |  |                   |  |            |  |                
|Worldwide Express Operations, LLC                     |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Subordinated Note                                     |  | 11.5%/1.0%        |  | 8/1/2020   |  |                 | 12,805 |  |      |   | 12,723 |           |  |   | 12,806              |  |  |  |   |  
|Common Equity (2,500,000 units)
(g)(i)                |  |                   |  |            |  |                 |        |  |      |   | 2,500  |           |  |   | 4,036               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 15,223 |           |  |   | 16,842              |  |  |  | 7 | %
|                                                      |  |                   |  |            |  |                
|Utility Equipment Manufacturing                       |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Mirage Trailers LLC (k)                               |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|Senior Secured Loan (j)(e)                            |  | 12.5%/0.0%        |  | 11/25/2020 |  |                 | 9,000  |  |      |   | 8,912  |           |  |   | 8,912               |  |  |  |   |  
|Common Equity (2,500,000 shares)                      |  |                   |  |            |  |                 |        |  |      |   | 2,475  |           |  |   | 2,475               |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   |        |           |  |   |                     |  |  |  |   |  
|                                                      |  |                   |  |            |  |                 |        |  |      |   | 11,387 |           |  |   | 11,387              |  |  |  | 5 | %



15



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2015

(In thousands, except shares)



|                                                      |  |                   |  |          |  |                 |       |  |      |   |         |           |  |   |                     |  |  |  |     |  
|----------------------------------------------------- |  | ----------------- |  | -------- |  | --------------- | ----- |  | ---- | - | ------- | --------- |  | - | ------------------- |  |  |  | --- | -
|Industry Portfolio Company (a)(b) Investment Type (c) |  | Rate (d)
Cash/PIK |  | Maturity |  | PrincipalAmount |       |  | Cost |   |         | FairValue |  |   | Percentof NetAssets | 
|Trantech Radiator Products, Inc.
(k)                  |  |                   |  |          |  |                 |       |  |      |   |         |           |  |   |                     |  |  |  |     |  
|Subordinated Note (i)                                 |  | 12.0%/1.8%        |  | 5/4/2017 |  | $               | 8,494 |  |      | $ | 8,482   |           |  | $ | 8,494               |  |  |  |     |  
|Common Equity (6,875 shares) (i)                      |  |                   |  |          |  |                 |       |  |      |   | 688     |           |  |   | 434                 |  |  |  |     |  
|                                                      |  |                   |  |          |  |                 |       |  |      |   |         |           |  |   |                     |  |  |  |     |  
|                                                      |  |                   |  |          |  |                 |       |  |      |   | 9,170   |           |  |   | 8,928               |  |  |  | 4   | %
|                                                      |  |                   |  |          |  |                
|Vending Equipment Manufacturing                       |  |                   |  |          |  |                 |       |  |      |   |         |           |  |   |                     |  |  |  |     |  
|Ice House America, LLC                                |  |                   |  |          |  |                 |       |  |      |   |         |           |  |   |                     |  |  |  |     |  
|Subordinated Note (i)                                 |  | 12.0%/3.5%        |  | 1/1/2020 |  |                 | 4,098 |  |      |   | 3,903   |           |  |   | 3,668               |  |  |  |     |  
|Warrant (1,957,895 units) (g)(i)                      |  |                   |  |          |  |                 |       |  |      |   | 216     |           |  |   | 47                  |  |  |  |     |  
|                                                      |  |                   |  |          |  |                 |       |  |      |   |         |           |  |   |                     |  |  |  |     |  
|                                                      |  |                   |  |          |  |                 |       |  |      |   | 4,119   |           |  |   | 3,715               |  |  |  | 2   | %
|                                                      |  |                   |  |          |  |                 |       |  |      |   |         |           |  |   |                     |  |  |  |     |  
|Total Investments                                     |  |                   |  |          |  |                 |       |  |      | $ | 448,338 |           |  | $ | 443,269             |  |  |  | 179 | %
|                                                      |  |                   |  |          |  |                 |       |  |      |   |         |           |  |   |                     |  |  |  |     |  



|(a) | See Note 3 to the consolidated financial statements for portfolio composition by geographic location.
|--- | -----------------------------------------------------------------------------------------------------

|(b) | Equity ownership may be held in shares or units of companies related to the portfolio companies.
|--- | ------------------------------------------------------------------------------------------------

|(c) | All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of December 31, 2015. Generally, payment-in-kind interest can be paid-in-kind or all in cash.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The investment bears interest at a variable rate that is determined by reference to LIBOR, which is reset monthly. The interest rate is set as LIBOR + 11.5% and is subject to a 12.5% interest rate floor. The Company has
provided the interest rate in effect as of December 31, 2015.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Income producing. Maturity date, if any, represents mandatory redemption date.
|--- | ------------------------------------------------------------------------------

|(g) | Investment is held by a wholly-owned subsidiary of the Company.
|--- | ---------------------------------------------------------------

|(h) | The entire commitment was unfunded at December 31, 2015. As such, no interest is being earned on this investment.
|--- | -----------------------------------------------------------------------------------------------------------------

|(i) | Investment pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Companys obligations
under the Credit Facility (see Note 6 to the consolidated financial statements).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | The portion of the investment not held by the Funds is pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company
other than the Companys obligations under the Credit Facility (see Note 6 to the consolidated financial statements).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) | As defined in the 1940 Act, the Company is deemed to be an Affiliated Person of this portfolio company because it owns 5% or more of the portfolio companys outstanding voting securities or it has the
power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was an Affiliated Person are detailed in Note 3 to the consolidated financial statements.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(l) | As defined in the 1940 Act, the Company is deemed to be both an Affiliated Person of and Control this portfolio company because it owns 25% or more of the portfolio companys outstanding
voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are
detailed in Note 3 to the consolidated financial statements.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(m) | Investment was on non-accrual status as of December 31, 2015, meaning the Company has ceased recognizing interest income on the investment.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------

|(n) | Investment in portfolio company that has sold its operations and is in the process of winding down.
|--- | ---------------------------------------------------------------------------------------------------

See Notes to Consolidated Financial Statements (unaudited).



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Note 1. Organization and Nature of Business

Fidus Investment Corporation, a Maryland corporation (FIC, and together with its subsidiaries, the Company), was formed
on February 14, 2011 for the purposes of (i) acquiring 100% of the limited partnership interests of Fidus Mezzanine Capital, L.P. and its consolidated subsidiaries (collectively, Fund I) and 100% of the membership interests of
Fund Is general partner, Fidus Mezzanine Capital GP, LLC (FMCGP), (ii) raising capital in an initial public offering that was completed in June 2011 (the IPO) and (iii) thereafter operating as an externally
managed, closed-end, non-diversified management investment company, within the meaning of the Investment Company Act of 1940, as amended (the 1940 Act), that has elected to be regulated as a business development company (BDC)
under the 1940 Act.

On June 20, 2011, FIC acquired 100% of the limited partnership interests in Fund I and 100% of the equity
interests in FMCGP, in exchange for 4,056,521 shares of common stock in FIC (the Formation Transactions). Fund I became FICs wholly-owned subsidiary, retained its license to operate as a Small Business Investment Company
(SBIC), and continues to hold investments and make new investments. The IPO consisted of the sale of 5,370,500 shares of the Companys common stock, including shares purchased by the underwriters pursuant to their exercise of the
over-allotment option, at a price of $15.00 per share resulting in net proceeds of $73,626, after deducting underwriting fees and commissions and offering costs totaling $6,932.

The Company provides customized debt and equity financing solutions to lower middle-market companies. Fund I commenced operations on
May 1, 2007, and on October 22, 2007, was granted a license to operate as a SBIC under the authority of the U.S. Small Business Administration (SBA). On March 29, 2013, the Company commenced operations of a second
wholly-owned subsidiary, Fidus Mezzanine Capital II, L.P. (Fund II) and on May 28, 2013, was granted a second license to operate Fund II as an SBIC. Collectively, Fund I and Fund II are referred to as the Funds. The SBIC
licenses allow the Funds to obtain leverage by issuing SBA-guaranteed debentures (SBA debentures), subject to the issuance of leverage commitments by the SBA and other customary procedures. As SBICs, the Funds are subject to a variety of
regulations and oversight by the SBA under the Small Business Investment Act of 1958, as amended (the SBIC Act), concerning, among other things, the size and nature of the companies in which they may invest and the structure of those
investments.

Fund I has also elected to be regulated as a BDC under the 1940 Act. Fund II is not registered under the 1940 Act and relies
on the exclusion from the definition of investment company contained in Section 3(c)(7) of the 1940 Act. In addition, for federal income tax purposes, the Company elected to be treated as a regulated investment company (RIC) under
Subchapter M of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2011.

For all periods subsequent to the consummation of the Formation Transactions and the IPO, the Company pays a quarterly base management fee and
an incentive fee to Fidus Investment Advisors, LLC (the Investment Advisor) under an investment advisory agreement (the Investment Advisory Agreement). The initial investment professionals of the Investment Advisor were
previously employed by Fidus Capital, LLC, who was the investment advisor to Fund I prior to consummation of the Formation Transactions.

Note 2.
Significant Accounting Policies

Basis of presentation: The accompanying consolidated financial statements of the Company have
been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) pursuant to the requirements for reporting on Form 10-Q, Accounting Standards Codification (ASC) 946,
Financial Services  Investment Companies(ASC 946), and Articles 6 or 10 of Regulation S-X. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications that are necessary for
the fair presentation of financial results as of and for the periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation. The current periods results of operation are not necessarily
indicative of results that ultimately may be achieved for the year. Therefore, the unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31,
2015.

Use of estimates: The preparation of the consolidated financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.

Consolidation: Pursuant to Article 6 of
Regulation S-X and ASC 946, the Company will generally not consolidate its investments in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. As a
result, the consolidated financial statements of the Company include only the accounts of the Company and its wholly-owned subsidiaries, including the Funds. All significant intercompany balances and transactions have been eliminated.



17



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Fair value of financial instruments: The Company measures and discloses fair value with respect to substantially all of its financial
instruments in accordance with ASC Topic 820 Fair Value Measurements and Disclosures (ASC Topic 820). ASC Topic 820 defines fair value, establishes a framework used to measure fair value, and requires disclosures for fair
value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. See Note 4 to the consolidated financial statements for further discussion regarding the fair value
measurements and hierarchy.

Investment classification: The Company classifies its investments in accordance with the requirements
of the 1940 Act. Under the 1940 Act, Control Investments are defined as investments in those companies where the Company owns more than 25% of the voting securities of such company or has rights to maintain greater than 50% of the board
representation. Under the 1940 Act, Affiliate Investments are defined as investments in those companies where the Company owns between 5% and 25% of the voting securities of such company. Non-Control/Non-Affiliate Investments
are those that neither qualify as Control Investments nor Affiliate Investments.

Segments: In accordance with ASC Topic 280
Segment Reporting, the Company has determined that it has a single reporting segment and operating unit structure.

Cash
and cash equivalents: Cash and cash equivalents are highly liquid investments with an original maturity of three months or less at the date of acquisition. The Company places its cash in financial institutions and, at times, such balances may be
in excess of the Federal Deposit Insurance Corporation insurance limits. The Company does not believe its cash balances are exposed to any significant credit risk.

Deferred financing costs: Deferred financing costs consist of fees and expenses paid in connection with the Credit Facility (as defined
in Note 6) and SBA debentures. Deferred financing costs are capitalized and amortized over the term of the debt agreement using the effective interest method. Unamortized deferred financing costs are presented as an offset to the corresponding debt
liabilities on the consolidated statements of assets and liabilities.

Deferred equity financing costs: Deferred equity financing
costs include registration expenses related to shelf filings, including expenses related to the launch of the ATM Program. These expenses primarily consist of Securities and Exchange Commission (SEC) registration fees, legal fees and
accounting fees incurred. These expenses are included in prepaid assets and are charged to additional paid in capital upon the receipt of proceeds from an equity offering or charged to expense if no offering is completed.

Realized gains or losses and unrealized appreciation or depreciation on investments:Realized gains or losses on investments are
recorded upon the sale or disposition of a portfolio investment and are calculated as the difference between the net proceeds from the sale or disposition and the cost basis of the investment, without regard to unrealized appreciation or
depreciation previously recognized. Net change in unrealized appreciation or depreciation on the consolidated statements of operations includes changes in the fair value of investments from the prior period, as determined in good faith by the
Companys board of directors (the Board) through the application of the Companys valuation policy, as well as reclassifications of any prior period unrealized appreciation or depreciation on exited investments to realized
gains or losses on investments.

Interest, fee and dividend income: Interest and dividend income is recorded on the accrual basis
to the extent that the Company expects to collect such amounts. Interest and dividend income is accrued daily based on the outstanding principal amount and the contractual terms of the debt or preferred equity investment. Dividend income is recorded
at the point an obligation exists for the portfolio company to make a distribution. Distributions from portfolio companies are evaluated to determine if the distribution is a distribution of earnings or a return of capital.

Certain of the Companys investments contain a payment-in-kind (PIK) income provision. The PIK income, computed at the
contractual rate specified in the applicable investment agreement, is added to the principal balance of the investment, rather than being paid in cash, and recorded as interest or dividend income, as applicable, on the consolidated statements of
operations. Generally, PIK can be paid-in-kind or all in cash. The Company stops accruing PIK income when there is reasonable doubt that PIK income will be collected. PIK income is included in the Companys taxable income and, therefore,
affects the amount the Company is required to pay to shareholders in the form of dividends in order to maintain the Companys tax treatment as a RIC and to avoid corporate federal income tax, even though the Company has not yet collected the
cash.

When there is reasonable doubt that principal, interest or dividends will be collected, loans or preferred equity investments are
placed on non-accrual status and the Company will generally cease recognizing interest or dividend income. Interest and dividend payments received on non-accrual investments may be recognized as interest or dividend income or may be applied to the
investment principal balance based on managements judgment. Non-accrual investments are restored to accrual status when past due principal, interest or dividends are paid and, in managements judgment, payments are likely to remain
current.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



In connection with the Companys debt investments, the Company will sometimes receive warrants or other equity-related securities from the
borrower (Warrants). The Company determines the cost basis of Warrants based upon their respective fair values on the date of receipt in proportion to the total fair value of the debt and Warrants received. Any resulting difference
between the face amount of the debt and its recorded fair value resulting from the assignment of value to the Warrants is treated as original issue discount (OID), and accreted into interest income using the effective interest method
over the term of the debt investment.

Transaction fees earned in connection with the Companys investments are recognized as fee
income. Such fees typically include fees for services, including structuring and advisory services, provided to portfolio companies. The Company recognizes income from fees for providing such structuring and advisory services when the services are
rendered or the transactions are completed. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as fee income when earned.

The Company also typically receives loan origination or closing fees in connection with investments. Such loan origination and closing fees
are capitalized as unearned income and offset against investment cost basis on the consolidated statements of assets and liabilities and accreted into income over the life of the investment.

Partial loan sales:The Company follows the guidance in ASC 860, Transfers and Servicing,when accounting for loan
participations and other partial loan sales. Such guidance requires a participation or other partial loan sale to meet the definition of a participating interest, as defined in the guidance, in order for sale treatment to be allowed.
Participations or other partial loan sales which do not meet the definition of a participating interest should remain on the Companys consolidated statement of assets and liabilities and the proceeds recorded as a secured borrowing until the
definition is met. Management has determined that all participations and other partial loan sale transactions entered into by the Company have met the definition of a participating interest. Accordingly, the Company uses sale treatment in accounting
for such transactions.

Income taxes: The Company has elected to be treated as a RIC under Subchapter M of the Code, which will
generally relieve the Company from U.S. federal income taxes with respect to all income distributed to stockholders. To maintain the tax treatment of a RIC, the Company is required to timely distribute to its stockholders at least 90.0% of
investment company taxable income, as defined by Subchapter M of the Code, each year. Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year
distributions into the next tax year; however, the Company will pay a 4.0% excise tax if it does not distribute at least 98.0% of the current years ordinary taxable income. Any such carryover taxable income must be distributed through a
dividend declared prior to the later of the date on which the final tax return related to the year in which the Company generated such taxable income is filed or the 15th day of the 9th month following the close of such taxable year. In addition, the Company will be subject to federal excise tax if it does not distribute at least 98.2% of its net capital gains realized, computed
for any one year period ending October 31.

In the future, the Funds may be limited by provisions of the SBIC Act and SBA regulations
governing SBICs from making certain distributions to FIC that may be necessary to enable FIC to make the minimum distributions required to maintain the tax treatment of a RIC.

The Company has certain wholly-owned taxable subsidiaries (the Taxable Subsidiaries), each of which generally holds one or more of
the Companys portfolio investments listed on the consolidated schedules of investments. The Taxable Subsidiaries are consolidated for financial reporting purposes, such that the Companys consolidated financial statements reflect the
Companys investment in the portfolio companies owned by the Taxable Subsidiaries. The purpose of the Taxable Subsidiaries is to permit the Company to hold equity investments in portfolio companies that are taxed as partnerships for U.S.
federal income tax purposes (such as entities organized as limited liability companies (LLCs) or other forms of pass through entities) while complying with the source-of-income requirements contained in the RIC tax
provisions. The Taxable Subsidiaries are not consolidated with the Company for U.S. federal corporate income tax purposes, and each Taxable Subsidiary will be subject to U.S. federal corporate income tax on its taxable income. Any such income or
expense is reflected in the consolidated statements of operations.

U.S. federal income tax regulations differ from GAAP, and as a result,
distributions in accordance with tax regulations may differ from net investment income and realized gains recognized under GAAP. Differences may be permanent or temporary. Permanent differences may arise as a result of, among other items, a
difference in the book and tax basis of certain assets and nondeductible federal income taxes. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

ASC Topic 740 Accounting for Uncertainty in Income Taxes (ASC Topic 740) provides guidance for how uncertain tax
positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Companys tax returns to determine whether
the tax positions are more-likely-than-not to be respected by the applicable tax authorities. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. It is
the Companys policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax provision, if any. There were no material uncertain income tax positions at March 31, 2016 and December 31, 2015. The
2012 through 2014 tax years remain subject to examination by U.S. federal and most state tax authorities.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Distributions to stockholders: Distributions to stockholders are recorded on the record date with respect to such distributions. The
amount, if any, to be distributed to stockholders, is determined by the Board each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, may be distributed at least annually, although the
Company may decide to retain such capital gains for investment.

The determination of the tax attributes for the Companys
distributions is made annually, and is based upon the Companys taxable income and distributions paid to its stockholders for the full year. Ordinary dividend distributions from a RIC do not qualify for the preferential tax rate on
qualified dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign
corporations. The tax characterization of the Companys distributions generally includes both ordinary income and capital gains but may also include qualified dividends or return of capital.

The Company has adopted a dividend reinvestment plan (DRIP) that provides for the reinvestment of dividends on behalf of its
stockholders, unless a stockholder has elected to receive dividends in cash. As a result, if the Company declares a cash dividend, the Companys stockholders who have not opted out of the DRIP at least three days prior to the
dividend payment date will have their cash dividend automatically reinvested into additional shares of the Companys common stock. The Company has the option to satisfy the share requirements of the DRIP through the issuance of new shares of
common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares are valued based upon the final closing price of the Companys common stock on a date determined by the Board. Shares purchased in
the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator before any associated brokerage or other costs. See Note 9 to the consolidated financial
statements regarding dividend declarations and distributions.

Earnings and net asset value per share: The earnings per share
calculations for the three months ended March 31, 2016 and 2015, are computed utilizing the weighted average shares outstanding for the period. Net asset value per share is calculated using the number of shares outstanding as of the end of the
period.

Stock repurchase plan: The Company has an open market stock repurchase program (the Program) under which the
Company may acquire up to $5.0 million of its outstanding common stock. Under the Program, the Company may, but is not obligated to, repurchase outstanding common stock in the open market from time to time provided that the Company complies with the
prohibitions under its insider trading policies and the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market value and timing constraints. The timing, manner, price and amount of any share
repurchases will be determined by Fidus management, in its discretion, based upon the evaluation of economic and market conditions, stock price, capital availability, applicable legal and regulatory requirements and other corporate
considerations. Unless extended by the Board, the Company expects that the Program will be in effect until January 22, 2017, or until the approved dollar amount has been used to repurchase shares. The Program does not require the Company to
repurchase any specific number of shares and the Company cannot assure that any shares will be repurchased under the Program. The Program may be suspended, extended, modified or discontinued at any time. The Company did not make any repurchases of
common stock during the quarters ended March 31, 2016 or 2015.

Recent accounting pronouncements: In February 2015, the
Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-02, Consolidation: Amendments to the Consolidation Analysis, which amends the criteria for determining which entities are
considered variable interest entities (VIEs), amends the criteria for determining if a service provider possesses a variable interest in a VIE and ends the deferral granted to investment companies for application of the VIE consolidation
model. The Company adopted ASU 2015-02 as of January 1, 2016. The adoption of ASU 2015-02 had no material impact on the Companys consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest  Imputation of interest (Subtopic 835-30): Simplifying the Presentation of Debt
Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset. Amortization of the
costs will continue to be reported as interest expense. The Company adopted ASU 2015-03 as of January 1, 2016. The adoption of ASU 2015-03 had no material impact on the Companys consolidated financial statements other than corresponding
reductions to total assets and total liabilities on the consolidated statements of assets and liabilities. Prior to adoption, the Company recorded deferred financing costs as an asset on the consolidated statements of assets and liabilities. Upon
adoption of ASU 2015-03, the Company reclassified these deferred costs to a direct offset of the related debt liability on the consolidated statements of assets and liabilities. The new guidance will be applied retrospectively to each prior period
presented. The Company reclassified the $4,872 of deferred financing costs presented as an asset as of December 31, 2015 to a direct offset of the related debt liabilities as of such date on the consolidated statements of assets and
liabilities.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition
requirements in Revenue Recognition (Topic 605). Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services. This guidance is effective for annual and interim reporting periods beginning after December 15, 2017 and early application is permitted only for annual reporting periods beginning
after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact this ASU will have on the Companys consolidated financial position or disclosures.

Note 3. Portfolio Company Investments

The Companys portfolio investments principally consist of secured and unsecured debt, equity warrants and direct equity investments in
privately held companies. The debt investments may or may not be secured by either a first or second lien on the assets of the portfolio company. The debt investments generally bear interest at fixed rates, and generally mature between five and
seven years from the original investment. In connection with a debt investment, the Company also may receive nominally priced equity warrants and/or make a direct equity investment in the portfolio company. The Companys warrants or equity
investments may be investments in a holding company related to the portfolio company. In addition, the Company periodically makes equity investments in its portfolio companies through Taxable Subsidiaries. In both situations, the investment is
generally reported under the name of the operating company on the consolidated schedules of investments.

As of March 31, 2016, the
Company had investments in 53 portfolio companies with an aggregate fair value of $455,682 and a weighted average effective yield on its debt investments of 13.3%. As of March 31, 2016, the Company held equity investments in 84.9% of its
portfolio companies and the average fully diluted equity ownership in those portfolio companies was 7.4%. As of December 31, 2015, the Company had investments in 53 portfolio companies with an aggregate fair value of $443,269 and a weighted
average effective yield on its debt investments of 13.3%. As of December 31, 2015, the Company held equity investments in 83.0% of its portfolio companies and the average fully diluted equity ownership in those portfolio companies was 8.3%. The
weighted average yields were computed using the effective interest rates for debt investments at cost as of March 31, 2016 and December 31, 2015, including accretion of original issue discount and loan origination fees, but excluding
investments on non-accrual status, if any.

Purchases of debt and equity investments for the three months ended March 31, 2016 and
2015, totaled $42,348 and $39,561, respectively. Proceeds from sales and repayments, including principal, return of capital distributions and realized gains, of portfolio investments for the three months ended March 31, 2016, and 2015 totaled
$31,581 and $24,679, respectively.

Investments by type with corresponding percentage of total portfolio investments consisted of the
following:



|                     |  |                |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|-------------------- |  | -------------- | ------- |  | ----------------- |  | ----- | -------------- |  | - | ----------------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | -
|                     |  | Fair Value     |         |  | Cost              | 
|                     |  | March 31, 2016 |         |  | December 31, 2015 |  |       | March 31, 2016 |  |   | December 31, 2015 | 
|Subordinated notes   |  | $              | 329,715 |  |                   |  | 72.4  | %              |  | $ | 300,467           |  |  |  | 67.8  | % |  | $ | 342,857 |  |  |  | 74.5  | % |  | $ | 309,899 |  |  |  | 69.2  | %
|Senior secured loans |  |                | 64,712  |  |                   |  | 14.2  |                |  |   | 88,485            |  |  |  | 20.0  |   |  |   | 66,502  |  |  |  | 14.5  |   |  |   | 88,505  |  |  |  | 19.7  |  
|Equity               |  |                | 51,515  |  |                   |  | 11.3  |                |  |   | 44,899            |  |  |  | 10.1  |   |  |   | 43,617  |  |  |  | 9.5   |   |  |   | 42,651  |  |  |  | 9.5   |  
|Warrants             |  |                | 9,555   |  |                   |  | 2.1   |                |  |   | 9,233             |  |  |  | 2.1   |   |  |   | 6,822   |  |  |  | 1.5   |   |  |   | 7,098   |  |  |  | 1.6   |  
|Royalty rights       |  |                | 185     |  |                   |  |      |                |  |   | 185               |  |  |  |      |   |  |   | 185     |  |  |  |      |   |  |   | 185     |  |  |  |      |  
|                     |  |                |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|Total                |  | $              | 455,682 |  |                   |  | 100.0 | %              |  | $ | 443,269           |  |  |  | 100.0 | % |  | $ | 459,983 |  |  |  | 100.0 | % |  | $ | 448,338 |  |  |  | 100.0 | %
|                     |  |                |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  

All investments made by the Company as of March 31, 2016 and December 31, 2015 were made in
portfolio companies headquartered in the U.S. The following table shows portfolio composition by geographic region at fair value and cost and as a percentage of total investments. The geographic composition is determined by the location of the
corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio companys business.



|          |  |                |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|--------- |  | -------------- | ------- |  | ----------------- |  | ----- | -------------- |  | - | ----------------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | -
|          |  | Fair Value     |         |  | Cost              | 
|          |  | March 31, 2016 |         |  | December 31, 2015 |  |       | March 31, 2016 |  |   | December 31, 2015 | 
|Midwest   |  | $              | 129,809 |  |                   |  | 28.5  | %              |  | $ | 119,291           |  |  |  | 26.8  | % |  | $ | 123,129 |  |  |  | 26.8  | % |  | $ | 116,015 |  |  |  | 25.9  | %
|Northeast |  |                | 105,611 |  |                   |  | 23.2  |                |  |   | 93,430            |  |  |  | 21.1  |   |  |   | 103,947 |  |  |  | 22.6  |   |  |   | 92,492  |  |  |  | 20.6  |  
|Southeast |  |                | 104,926 |  |                   |  | 23.0  |                |  |   | 107,975           |  |  |  | 24.4  |   |  |   | 115,351 |  |  |  | 25.1  |   |  |   | 113,430 |  |  |  | 25.3  |  
|West      |  |                | 72,201  |  |                   |  | 15.8  |                |  |   | 84,648            |  |  |  | 19.1  |   |  |   | 63,612  |  |  |  | 13.8  |   |  |   | 77,028  |  |  |  | 17.2  |  
|Southwest |  |                | 43,135  |  |                   |  | 9.5   |                |  |   | 37,925            |  |  |  | 8.6   |   |  |   | 53,944  |  |  |  | 11.7  |   |  |   | 49,373  |  |  |  | 11.0  |  
|          |  |                |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|Total     |  | $              | 455,682 |  |                   |  | 100.0 | %              |  | $ | 443,269           |  |  |  | 100.0 | % |  | $ | 459,983 |  |  |  | 100.0 | % |  | $ | 448,338 |  |  |  | 100.0 | %
|          |  |                |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  

As of March 31, 2016 and December 31, 2015, the Company had no portfolio company investments that
represented more than 10% of the total investment portfolio. As of March 31, 2016 and December 31, 2015, the Company had debt investments in one portfolio company on non-accrual status, which had an aggregate cost of $5,203 and $5,203,
respectively, and a fair value of $0 and $618, respectively, as of such dates.



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Schedule 12-14. Consolidated Schedule of Investments In and Advances To Affiliates

The table below represents the fair value of control and affiliate investments as of December 31, 2015 and any gross additions and
reductions made to such investments, as well as the ending fair value as of March 31, 2016.



|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|-------------------------------------- |  | -------------------- | --- |  | -------------------------- | - | ------ | ----------------- |  | - | ------------------ |  |  | ----------------------- | --- |  |  | - | ------ | 
|Portfolio Company
(1)                  |  | Credited toIncome(2) |     |  | December 31,2015Fair Value |   |        | GrossAdditions(3) |  |   | GrossReductions(4) |  |  | March 31,2016Fair Value |    
|Control Investments                    |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Paramount Building Solutions, LLC      |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Subordinated Note                      |  | $                    |    |  |                            | $ | 618    |                   |  | $ |                   |  |  | $                       | 618 |  |  | $ |       | 
|Subordinated Note                      |  |                      |    |  |                            |   |       |                   |  |   |                   |  |  |                         |    |  |  |   |       | 
|Subordinated Note                      |  |                      |    |  |                            |   |       |                   |  |   |                   |  |  |                         |    |  |  |   |       | 
|Subordinated Note                      |  |                      |    |  |                            |   |       |                   |  |   |                   |  |  |                         |    |  |  |   |       | 
|Warrant                                |  |                      |    |  |                            |   |       |                   |  |   |                   |  |  |                         |    |  |  |   |       | 
|Preferred Equity                       |  |                      |    |  |                            |   |       |                   |  |   |                   |  |  |                         |    |  |  |   |       | 
|Common Equity                          |  |                      |    |  |                            |   |       |                   |  |   |                   |  |  |                         |    |  |  |   |       | 
|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|                                       |  |                      |    |  |                            |   | 618    |                   |  |   |                   |  |  |                         | 618 |  |  |   |       | 
|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Total Control Investments              |  | $                    |    |  |                            | $ | 618    |                   |  | $ |                   |  |  | $                       | 618 |  |  | $ |       | 
|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Affiliate Investments                  |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Apex Microtechnology, Inc.             |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Warrant                                |  | $                    |    |  |                            | $ | 274    |                   |  | $ | 94                 |  |  | $                       |    |  |  | $ | 368    | 
|Common Equity                          |  |                      | 41  |  |                            |   | 1,425  |                   |  |   | 417                |  |  |                         |    |  |  |   | 1,842  | 
|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|                                       |  |                      | 41  |  |                            |   | 1,699  |                   |  |   | 511                |  |  |                         |    |  |  |   | 2,210  | 
|FAR Research Inc.                      |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Senior Secured Loan                    |  |                      | 238 |  |                            |   | 7,448  |                   |  |   | 20                 |  |  |                         | 2   |  |  |   | 7,466  | 
|Revolving Loan                         |  |                      | 7   |  |                            |   | 136    |                   |  |   | 1                  |  |  |                         | 1   |  |  |   | 136    | 
|Common Equity                          |  |                      |    |  |                            |   | 161    |                   |  |   |                   |  |  |                         | 36  |  |  |   | 125    | 
|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|                                       |  |                      | 245 |  |                            |   | 7,745  |                   |  |   | 21                 |  |  |                         | 39  |  |  |   | 7,727  | 
|Inflexxion, Inc.                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Senior Secured Loan                    |  |                      | 131 |  |                            |   | 3,470  |                   |  |   | 1                  |  |  |                         | 947 |  |  |   | 2,524  | 
|Revolving Loan                         |  |                      | 6   |  |                            |   | 132    |                   |  |   |                   |  |  |                         | 36  |  |  |   | 96     | 
|Preferred Equity                       |  |                      |    |  |                            |   |       |                   |  |   |                   |  |  |                         |    |  |  |   |       | 
|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|                                       |  |                      | 137 |  |                            |   | 3,602  |                   |  |   | 1                  |  |  |                         | 983 |  |  |   | 2,620  | 
|Malabar International                  |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Subordinated Note                      |  |                      | 285 |  |                            |   | 7,450  |                   |  |   | 50                 |  |  |                         | 3   |  |  |   | 7,497  | 
|Preferred Equity                       |  |                      | 30  |  |                            |   | 4,808  |                   |  |   | 210                |  |  |                         |    |  |  |   | 5,018  | 
|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|                                       |  |                      | 315 |  |                            |   | 12,258 |                   |  |   | 260                |  |  |                         | 3   |  |  |   | 12,515 | 
|Medsurant Holdings, LLC                |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Subordinated Note                      |  |                      | 197 |  |                            |   | 6,211  |                   |  |   | 3                  |  |  |                         |    |  |  |   | 6,214  | 
|Preferred Equity                       |  |                      |    |  |                            |   | 1,515  |                   |  |   | 7                  |  |  |                         |    |  |  |   | 1,522  | 
|Warrant                                |  |                      |    |  |                            |   | 5,237  |                   |  |   | 25                 |  |  |                         |    |  |  |   | 5,262  | 
|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|                                       |  |                      | 197 |  |                            |   | 12,963 |                   |  |   | 35                 |  |  |                         |    |  |  |   | 12,998 | 
|Microbiology Research Associates, Inc. |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|Senior Secured Loan                    |  |                      | 57  |  |                            |   | 3,750  |                   |  |   | 1                  |  |  |                         | 1   |  |  |   | 3,750  | 
|Revolving Loan                         |  |                      | 1   |  |                            |   |       |                   |  |   |                   |  |  |                         |    |  |  |   |       | 
|Subordinated Note                      |  |                      | 196 |  |                            |   | 6,250  |                   |  |   | 1                  |  |  |                         | 1   |  |  |   | 6,250  | 
|Common Equity                          |  |                      |    |  |                            |   | 1,444  |                   |  |   | 3                  |  |  |                         |    |  |  |   | 1,447  | 
|                                       |  |                      |     |  |                            |   |        |                   |  |   |                    |  |  |                         |     |  |  |   |        | 
|                                       |  |                      | 254 |  |                            |   | 11,444 |                   |  |   | 5                  |  |  |                         | 2   |  |  |   | 11,447 | 



22



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|---------------------------------------------------- |  | -------------------- | ----- |  | -------------------------- | - | ------- | ----------------- |  | - | ------------------ |  |  | ----------------------- | ----- |  |  | - | ------- | 
|Portfolio Company
(1)                                |  | Credited toIncome(2) |       |  | December 31,2015Fair Value |   |         | GrossAdditions(3) |  |   | GrossReductions(4) |  |  | March 31,2016Fair Value |      
|Mirage Trailers LLC                                  |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|Senior Secured Loan                                  |  | $                    | 290   |  |                            | $ | 8,912   |                   |  | $ | 4                  |  |  | $                       | 398   |  |  | $ | 8,518   | 
|Common Equity                                        |  |                      | 1     |  |                            |   | 2,475   |                   |  |   | 2                  |  |  |                         |      |  |  |   | 2,477   | 
|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|                                                     |  |                      | 291   |  |                            |   | 11,387  |                   |  |   | 6                  |  |  |                         | 398   |  |  |   | 10,995  | 
|Pfanstiehl, Inc.                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|Subordinated Note                                    |  |                      | 213   |  |                            |   | 6,208   |                   |  |   | 3                  |  |  |                         | 3     |  |  |   | 6,208   | 
|Common Equity                                        |  |                      | 90    |  |                            |   | 4,280   |                   |  |   | 1,442              |  |  |                         |      |  |  |   | 5,722   | 
|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|                                                     |  |                      | 303   |  |                            |   | 10,488  |                   |  |   | 1,445              |  |  |                         | 3     |  |  |   | 11,930  | 
|Safety Products Group, LLC                           |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|Subordinated Note                                    |  |                      | 343   |  |                            |   | 10,000  |                   |  |   | 2                  |  |  |                         | 2     |  |  |   | 10,000  | 
|Preferred Equity                                     |  |                      |      |  |                            |   | 834     |                   |  |   | 11                 |  |  |                         |      |  |  |   | 845     | 
|Common Equity                                        |  |                      |      |  |                            |   |        |                   |  |   |                   |  |  |                         |      |  |  |   |        | 
|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|                                                     |  |                      | 343   |  |                            |   | 10,834  |                   |  |   | 13                 |  |  |                         | 2     |  |  |   | 10,845  | 
|Steward Holding LLC
(dba Steward Advanced Materials) |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|Subordinated Note                                    |  |                      | 251   |  |                            |   | 6,987   |                   |  |   | 41                 |  |  |                         |      |  |  |   | 7,028   | 
|Common Equity                                        |  |                      |      |  |                            |   | 1,000   |                   |  |   |                   |  |  |                         |      |  |  |   | 1,000   | 
|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|                                                     |  |                      | 251   |  |                            |   | 7,987   |                   |  |   | 41                 |  |  |                         |      |  |  |   | 8,028   | 
|Trantech Radiator Products, Inc.                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|Subordinated Note                                    |  |                      | 297   |  |                            |   | 8,494   |                   |  |   | 2                  |  |  |                         | 2     |  |  |   | 8,494   | 
|Common Equity                                        |  |                      |      |  |                            |   | 434     |                   |  |   | 246                |  |  |                         |      |  |  |   | 680     | 
|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|                                                     |  |                      | 297   |  |                            |   | 8,928   |                   |  |   | 248                |  |  |                         | 2     |  |  |   | 9,174   | 
|Westminster Cracker Company, Inc.                    |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|Common Equity                                        |  |                      |      |  |                            |   | 191     |                   |  |   |                   |  |  |                         |      |  |  |   | 191     | 
|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|                                                     |  |                      |      |  |                            |   | 191     |                   |  |   |                   |  |  |                         |      |  |  |   | 191     | 
|World Wide Packaging, LLC                            |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|Subordinated Note                                    |  |                      | 339   |  |                            |   | 10,277  |                   |  |   | 28                 |  |  |                         | 15    |  |  |   | 10,290  | 
|Common Equity                                        |  |                      |      |  |                            |   | 2,043   |                   |  |   | 279                |  |  |                         |      |  |  |   | 2,322   | 
|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|                                                     |  |                      | 339   |  |                            |   | 12,320  |                   |  |   | 307                |  |  |                         | 15    |  |  |   | 12,612  | 
|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 
|Total Affiliate Investments                          |  | $                    | 3,013 |  |                            | $ | 111,846 |                   |  | $ | 2,893              |  |  | $                       | 1,447 |  |  | $ | 113,292 | 
|                                                     |  |                      |       |  |                            |   |         |                   |  |   |                    |  |  |                         |       |  |  |   |         | 



|(1) | The principal amount, the ownership detail for equity investments, and if the investment is income producing is shown in the consolidated schedule of investments.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Represents the total amount of interest, fees or dividends included in 2016 income for the portion of the three months ended March 31, 2016 that an investment was included in Control or Affiliate categories.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Gross additions include increases in the cost basis of investments resulting from a new portfolio investment, follow on investments, accrued PIK interest or dividends, and accretion of OID and loan origination fees.
Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation, as well as the movement of an existing portfolio company into this category and out of a different category.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Gross reductions include decreases in the cost basis of investments resulting from principal repayments, if any. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized
appreciation as well as the movement of an existing portfolio company out of this category and into a different category.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Note 4. Fair Value Measurements

Investments

The Board has established and documented processes and methodologies for determining the fair values of portfolio company investments on a
recurring basis in accordance with ASC Topic 820 and consistent with the requirements of the 1940 Act. Fair value is the price, determined at the measurement date, that would be received in the sale of an asset or paid to transfer a liability in an
orderly transaction between market participants. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available or reliable, valuation
techniques described below are applied. Under ASC Topic 820, portfolio investments recorded at fair value in the consolidated financial statements are classified within the fair value hierarchy based upon the level of judgment associated with the
inputs used to measure their value, as defined below:

Level 1  Inputs are unadjusted, quoted prices in active markets for
identical assets as of the measurement date.

Level 2  Inputs include quoted prices for similar assets in active markets, or
that are quoted prices for identical or similar assets in markets that are not active and inputs that are observable, either directly or indirectly, for substantially the full term, if applicable, of the investment.

Level 3  Inputs include those that are both unobservable and significant to the overall fair value measurement.

An investments categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair
value measurement. The Companys investment portfolio is comprised entirely of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are not available.
Therefore, the Company values all of its portfolio investments at fair value, as determined in good faith by the Board, using Level 3 inputs. The degree of judgment exercised by the Board in determining fair value is greatest for investments
classified as Level 3 inputs. Due to the inherent uncertainty of determining the fair values of investments that do not have readily available market values, the Boards estimate of fair values may differ significantly from the values that
would have been used had a ready market for the securities existed, and those differences may be material. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the
investments may cause the amounts ultimately realized on these investments to be materially different than the valuations currently assigned.

With respect to investments for which market quotations are not readily available, the Board undertakes a multi-step valuation process each
quarter, as described below:



| |  |  | the quarterly valuation process begins with each portfolio company or investment being initially evaluated and rated by the investment professionals of the Investment Advisor responsible for the portfolio investment;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | preliminary valuation conclusions are then documented and discussed with the investment committee of the Investment Advisor;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | the Board engages one or more independent valuation firm(s) to conduct independent appraisals of a selection of our portfolio investments for which market quotations are not readily available. Each portfolio company
investment is generally appraised by the valuation firm(s) at least once every calendar year and each new portfolio company investment is appraised at least once in the twelve-month period following the initial investment. In certain instances, the
Company may determine that it is not cost-effective, and as a result it is not in the Companys stockholders best interest, to request the independent appraisal of certain portfolio company investments. Such instances include, but are not
limited to, situations where the Company determines that the fair value of the portfolio company investment is relatively insignificant to the fair value of the total portfolio. The Board consulted with the independent valuation firm(s) in arriving
at the Companys determination of fair value for 13 and 16 of its portfolio company investments representing 25.9% and 43.0% of the total portfolio investments at fair value (exclusive of new portfolio company investments made during the three
months ended March 31, 2016 and December 31, 2015, respectively) as of March 31, 2016 and December 31, 2015, respectively.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the audit committee of the Board reviews the preliminary valuations of the Investment Advisor and of the independent valuation firm(s) and responds and supplements the valuation recommendations to reflect any
comments; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the Board discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of the Investment Advisor, the independent valuation firm(s) and the audit
committee.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In making the good faith determination of the value of portfolio investments, the Board starts with the cost
basis of the security. The transaction price is typically the best estimate of fair value at inception. When evidence supports a subsequent change to the carrying value from the original transaction price, adjustments are made to reflect the
expected exit values.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Consistent with the policies and methodologies adopted by the Board, the Company performs detailed valuations of its debt and equity
investments, including an analysis on the Companys unfunded loan commitments, using both the market and income approaches as appropriate. Under the market approach, the Company typically uses the enterprise value methodology to determine the
fair value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which the Company derives a single estimate of
enterprise value. Under the income approach, the Company typically prepares and analyzes discounted cash flow models to estimate the present value of future cash flows of either an individual debt investment or of the underlying portfolio company
itself.

The Company evaluates investments in portfolio companies using the most recent portfolio company financial statements and
forecasts. The Company also consults with the portfolio companys senior management to obtain further updates on the portfolio companys performance, including information such as industry trends, new product development and other
operational issues.

For the Companys debt investments, including senior secured loans and subordinated notes, the primary valuation
technique used to estimate the fair value is the discounted cash flow method. However, if there is deterioration in credit quality or a debt investment is in workout status, the Company may consider other methods in determining the fair value,
including the value attributable to the debt investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. The Companys discounted cash flow models estimate a range of fair
values by applying an appropriate discount rate to the future cash flow streams of its debt investments, based on future interest and principal payments as set forth in the associated loan agreements. The Company prepares a weighted average cost of
capital for use in the discounted cash flow model for each investment, based on factors including, but not limited to: current pricing and credit metrics for similar proposed or executed investment transactions of private companies; the portfolio
companys historical financial results and outlook; and the portfolio companys current leverage and credit quality as compared to leverage and credit quality as of the date the investment was made. The Company may also consider the
following factors when determining the fair value of debt investments: the portfolio companys ability to make future scheduled payments; prepayment penalties and other fees; estimated remaining life; the nature and realizable value of any
collateral securing such debt investment; and changes in the interest rate environment and the credit markets that generally may affect the price at which similar investments may be made. The Company estimates the remaining life of its debt
investments to generally be the legal maturity date of the instrument, as the Company generally intends to hold its loans to maturity. However, if the Company has information available to it that the loan is expected to be repaid in the near term,
it would use an estimated remaining life based on the expected repayment date.

For the Companys equity investments, including
equity and warrants, the Company generally uses a market approach, including valuation methodologies consistent with industry practice, to estimate the enterprise value of portfolio companies. Typically, the enterprise value of a private company is
based on multiples of EBITDA, net income, revenues, or in limited cases, book value. In estimating the enterprise value of a portfolio company, the Company analyzes various factors consistent with industry practice, including but not limited to
original transaction multiples, the portfolio companys historical and projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any
collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. Where applicable, the Company considers the Companys ability to influence the capital structure of the
portfolio company, as well as the timing of a potential exit.

The Company may also utilize an income approach when estimating the fair
value of its equity securities, either as a primary methodology if consistent with industry practice or if the market approach is otherwise not applicable, or as a supporting methodology to corroborate the fair value ranges determined by the market
approach. The Company typically prepares and analyzes discounted cash flow models based on projections of the future free cash flows (or earnings) of the portfolio company. The Company considers various factors, including but not limited to the
portfolio companys projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the markets in which the portfolio company does business, and comparisons of financial ratios
of peer companies that are public.

The fair value of the Companys royalty rights are calculated based on projected future cash
flows and the specific provisions contained in the pertinent agreements. The determination of the fair value of such royalty rights is not a significant component of the Companys valuation process.

The Company reviews the fair value hierarchy classifications on a quarterly basis. Reclassifications impacting Level 3 of the fair value
hierarchy are reported as transfers in or out of the Level 3 category as of the beginning of the quarter in which the reclassifications occur. There were no transfers among Levels 1, 2, and 3 during the three months ended March 31,
2016 and 2015.

The following tables present a reconciliation of the beginning and ending balances for fair valued investments measured
using significant unobservable inputs (Level 3) for the three months ended March 31, 2016 and 2015:



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)





|                                                                    |  |                   |         |   |                     |   |         |        |  |   |          |   |  |               |       |   |       |   |     |  |  |   |         |  
|------------------------------------------------------------------- |  | ----------------- | ------- | - | ------------------- | - | ------- | ------ |  | - | -------- | - |  | ------------- | ----- | - | ----- | - | --- |  |  | - | ------- | -
|                                                                    |  | SubordinatedNotes |         |   | Senior SecuredLoans |   |         | Equity |  |   | Warrants |   |  | RoyaltyRights |       |   | Total |  
|Balance, December 31, 2014                                          |  | $                 | 273,711 |   |                     | $ | 74,286  |        |  | $ | 42,886   |   |  | $             | 5,472 |   |       | $ |    |  |  | $ | 396,355 |  
|Net realized (losses) gains on investments                          |  |                   |        |   |                     |   |        |        |  |   |         |   |  |               |      |   |       |   |    |  |  |   |        |  
|Net change in unrealized (depreciation) appreciation on investments |  |                   | (1,135  | ) |                     |   | (17     | )      |  |   | 557      |   |  |               | 775   |   |       |   |    |  |  |   | 180     |  
|Purchase of investments                                             |  |                   | 24,784  |   |                     |   | 12,811  |        |  |   | 1,750    |   |  |               | 216   |   |       |   |    |  |  |   | 39,561  |  
|Proceeds from sales and repayments of investments                   |  |                   | (23,943 | ) |                     |   | (447    | )      |  |   | (289     | ) |  |               |      |   |       |   |    |  |  |   | (24,679 | )
|Interest and dividend income paid-in-kind                           |  |                   | 842     |   |                     |   | 198     |        |  |   | 34       |   |  |               |      |   |       |   |    |  |  |   | 1,074   |  
|Proceeds from loan origination fees                                 |  |                   | (120    | ) |                     |   | (130    | )      |  |   |         |   |  |               |      |   |       |   |    |  |  |   | (250    | )
|Accretion of loan origination fees                                  |  |                   | 187     |   |                     |   | 24      |        |  |   | 1        |   |  |               |      |   |       |   |    |  |  |   | 212     |  
|Accretion of original issue discount                                |  |                   | 145     |   |                     |   | 5       |        |  |   | 1        |   |  |               |      |   |       |   |    |  |  |   | 151     |  
|                                                                    |  |                   |         |   |                     |   |         |        |  |   |          |   |  |               |       |   |       |   |     |  |  |   |         |  
|Balance, March 31, 2015                                             |  | $                 | 274,471 |   |                     | $ | 86,730  |        |  | $ | 44,940   |   |  | $             | 6,463 |   |       | $ |    |  |  | $ | 412,604 |  
|                                                                    |  |                   |         |   |                     |   |         |        |  |   |          |   |  |               |       |   |       |   |     |  |  |   |         |  
|Balance, December 31, 2015                                          |  | $                 | 300,467 |   |                     | $ | 88,485  |        |  | $ | 44,899   |   |  | $             | 9,233 |   |       | $ | 185 |  |  | $ | 443,269 |  
|Net realized gains on investments                                   |  |                   |        |   |                     |   |        |        |  |   | (35      | ) |  |               | (275  | ) |       |   |    |  |  |   | (310    | )
|Net change in unrealized (depreciation) appreciation on investments |  |                   | (3,710  | ) |                     |   | (1,770  | )      |  |   | 5,650    |   |  |               | 598   |   |       |   |    |  |  |   | 768     |  
|Purchase of investments                                             |  |                   | 39,350  |   |                     |   | 1,350   |        |  |   | 1,648    |   |  |               |      |   |       |   |    |  |  |   | 42,348  |  
|Proceeds from sales and repayments of investments                   |  |                   | (7,044  | ) |                     |   | (23,836 | )      |  |   | (700     | ) |  |               | (1    | ) |       |   |    |  |  |   | (31,581 | )
|Interest and dividend income paid-in-kind                           |  |                   | 738     |   |                     |   | 299     |        |  |   | 50       |   |  |               |      |   |       |   |    |  |  |   | 1,087   |  
|Proceeds from loan origination fees                                 |  |                   | (269    | ) |                     |   | (6      | )      |  |   |         |   |  |               |      |   |       |   |    |  |  |   | (275    | )
|Accretion of loan origination fees                                  |  |                   | 124     |   |                     |   | 190     |        |  |   | 2        |   |  |               |      |   |       |   |    |  |  |   | 316     |  
|Accretion of original issue discount                                |  |                   | 59      |   |                     |   |        |        |  |   | 1        |   |  |               |      |   |       |   |    |  |  |   | 60      |  
|                                                                    |  |                   |         |   |                     |   |         |        |  |   |          |   |  |               |       |   |       |   |     |  |  |   |         |  
|Balance, March 31, 2016                                             |  | $                 | 329,715 |   |                     | $ | 64,712  |        |  | $ | 51,515   |   |  | $             | 9,555 |   |       | $ | 185 |  |  | $ | 455,682 |  
|                                                                    |  |                   |         |   |                     |   |         |        |  |   |          |   |  |               |       |   |       |   |     |  |  |   |         |  

Net change in unrealized (depreciation) of $(141) and $(85) for the three months ended March 31, 2016 and
2015, respectively, was attributable to Level 3 investments held at March 31, 2016 and 2015, respectively.

The following tables
summarize the significant unobservable inputs by valuation technique used to determine the fair value of the Companys Level 3 debt and equity investments as of March 31, 2016 and December 31, 2015. The tables are not intended to be
all-inclusive, but instead capture the significant unobservable inputs relevant to the Companys determination of fair values.



|                     |  |                             |         |  |                      |                      |                     |                                  |                          |                      
|-------------------- |  | --------------------------- | ------- |  | -------------------- | -------------------- | ------------------- | -------------------------------- | ------------------------ | ---------------------
|                     |  | Fair Value atMarch 31, 2016 |         |  | Valuation Techniques |                      | Unobservable Inputs |                                  | Range
(weighted average)
|Debt investments:    |  |                             |         |  |                      |                      |                     |                                  |                          |                      
|Subordinated notes   |  | $                           | 317,612 |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                          | 10.9% - 21.4% (13.6%)
|                     |  |                             | 12,103  |  |                      | Enterprise value     |                     | Asset coverage                   |                          | 50.0% - 85.0% (71.4%)
|Senior secured loans |  |                             | 62,092  |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                          | 6.1% - 25.0% (13.7%) 
|                     |  |                             | 2,620   |  |                      | Enterprise value     |                     | Revenue Multiples                |                          | 0.45x  0.45x (0.45x)
|                     |  |                             |         | 
|Equity investments:  |  |                             |         |  |                      |                      |                     |                                  |                          |                      
|Equity               |  |                             | 51,515  |  |                      | Enterprise value     |                     | EBITDA multiples                 |                          | 5.0x  13.1x (7.3x)  
|Warrants             |  |                             | 9,555   |  |                      | Enterprise value     |                     | EBITDA multiples                 |                          | 5.5x  9.5x (6.7x)   
|Royalty rights       |  |                             | 185     |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                          | 27.0% - 27.0% (27.0%)



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



|                     |  |                               |         |  |                      |                      |                     |                                  |                          |                      
|-------------------- |  | ----------------------------- | ------- |  | -------------------- | -------------------- | ------------------- | -------------------------------- | ------------------------ | ---------------------
|                     |  | Fair Value atDecember 31,2015 |         |  | Valuation Techniques |                      | Unobservable Inputs |                                  | Range
(weighted average)
|Debt investments:    |  |                               |         |  |                      |                      |                     |                                  |                          |                      
|Subordinated notes   |  | $                             | 299,849 |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                          | 10.9% - 22.8% (14.8%)
|                     |  |                               | 618     |  |                      | Enterprise value     |                     | EBITDA multiples                 |                          | 5.5x  5.5x (5.5x)   
|Senior secured loans |  |                               | 88,485  |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                          | 6.1% - 23.2% (14.1%) 
|Equity investments:  |  |                               |         |  |                      |                      |                     |                                  |                          |                      
|Equity               |  |                               | 44,899  |  |                      | Enterprise value     |                     | EBITDA multiples                 |                          | 3.8x  13.1x (7.3x)  
|Warrants             |  |                               | 9,233   |  |                      | Enterprise value     |                     | EBITDA multiples                 |                          | 5.0x  9.5x (6.7x)   
|Royalty rights       |  |                               | 185     |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                          | 22.0% - 27.0% (27.0%)

The significant unobservable input used in determining the fair value under the discounted cash flow technique
is the weighted average cost of capital of each security. Significant increases (or decreases) in this input would likely result in a significantly lower (or higher) fair value estimate.

The significant unobservable inputs used in determining fair value under the enterprise value technique are revenue and EBITDA multiples.
Significant increases (or decreases) in this input could result in a significantly higher (or lower) fair value estimate.

Other Financial Assets and
Liabilities

ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such
value. The Company believes that the carrying amounts of its other financial instruments such as cash and cash equivalents, receivables and payables approximate the fair value of such items due to the short maturity of such instruments. The fair
value of borrowings under the Credit Facility (as defined in Note 6) are based on a market yield approach and current interest rates, which are level 3 inputs to the market yield model, and is estimated to be $11,000 and $15,500 as of March 31,
2016 and December 31, 2015, respectively, which is the same as the Companys carrying value of the borrowings. The fair value of SBA debentures is estimated by discounting remaining payments using current market rates for similar
instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the debentures. As of March 31, 2016 and December 31, 2015, the fair value of the Companys SBA debentures using
Level 3 inputs is estimated at $214,000 and $213,500, respectively, which is the same as the Companys carrying value of the debentures.

Note 5.
Related Party Transactions

Investment Advisory Agreement: Concurrent with the Formation Transactions, the Company entered into
the Investment Advisory Agreement with the Investment Advisor. On June 3, 2015, the Board approved the renewal of the Investment Advisory Agreement through June 20, 2016. Pursuant to the Investment Advisory Agreement and subject to the
overall supervision of the Board, the Investment Advisor provides investment advisory services to the Company. For providing these services, the Investment Advisor receives a fee, consisting of two components  a base management fee and an
incentive fee.

The base management fee is calculated at an annual rate of 1.75% based on the average value of total assets (other than
cash or cash equivalents but including assets purchased with borrowed amounts) at the end of the two most recently completed calendar quarters. The base management fee is payable quarterly in arrears. The base management fee under the Investment
Advisory Agreement for the three months ended March 31, 2016 and 2015 totaled $1,983, and $1,791, respectively.

The incentive fee
consists of two parts. The first part is calculated and payable quarterly in arrears based on the Companys pre-incentive fee net investment income for the quarter. Pre-incentive fee net investment income means interest income, dividend income
and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance)
accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement (defined below) and any interest expense and dividends paid on any outstanding
preferred stock, but excluding the incentive fee, excise taxes on realized gains and any deferred organizing and offering costs). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as
market discount, debt instruments with payment-in-kind income, preferred stock with PIK dividends and zero-coupon securities), accrued income the Company has not yet received in cash. The Investment Advisor is not under any obligation to reimburse
the Company for any part of the incentive fee it receives that was based on accrued interest that the Company never collects.

Pre-incentive fee net investment income does not include any realized capital gains, taxes associated with such realized capital gains,
realized capital losses or unrealized capital appreciation or depreciation. Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter where the Company incurs a loss. For example, if the
Company generates pre-incentive fee net investment income in excess of the hurdle rate (as defined below) for a quarter, the Company will pay the applicable incentive fee even if the Company has incurred a loss in that quarter due to a net loss on
investments.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Pre-incentive fee net investment income, expressed as a rate of return on the value of the Companys weighted average net assets (defined
as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed hurdle rate of 2.0% per quarter. If
market interest rates rise, the Company may be able to invest funds in debt instruments that provide for a higher return, which would increase the Companys pre-incentive fee net investment income and make it easier for the Investment Advisor
to surpass the fixed hurdle rate and receive an incentive fee based on such net investment income. The Companys pre-incentive fee net investment income used to calculate this part of the incentive fee is also included in the total assets
(other than cash and cash equivalents but including assets purchased with borrowed amounts) used to calculate the 1.75% base management fee.

The Company pays the Investment Advisor an incentive fee with respect to pre-incentive fee net investment income in each calendar quarter as
follows:



| |  |  | no incentive fee in any calendar quarter in which the pre-incentive fee net investment income does not exceed the hurdle rate of 2.0%;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------



| |  |  | 100.0% of the Companys pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.5% in any
calendar quarter. This portion of the pre-incentive fee net investment income (which exceeds the hurdle rate but is less than 2.5%) is referred to as the catch-up provision. The catch-up is meant to provide the Investment Advisor with
20.0% of the pre-incentive fee net investment income as if a hurdle rate did not apply if this net investment income exceeds 2.5% in any calendar quarter; and
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | 20.0% of the amount of the Companys pre-incentive fee net investment income, if any, that exceeds 2.5% in any calendar quarter.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------

The sum of the calculations above equals the income incentive fee. The income incentive fee is appropriately prorated for any period of less
than three months and adjusted for any share issuances or repurchases during the calendar quarter. The income incentive fee for the three months ended March 31, 2016 and 2015 totaled $1,788 and $1,563, respectively.

The second part of the incentive fee is a capital gains incentive fee that is determined and paid in arrears as of the end of each fiscal year
(or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20.0% of the net capital gains as of the end of the fiscal year. In determining the capital gains incentive fee to be paid to the Investment Advisor,
the Company calculates the cumulative aggregate realized capital gains and cumulative aggregate realized capital losses since the Formation Transactions, and the aggregate unrealized capital depreciation as of the date of the calculation, as
applicable, with respect to each of the investments in the Companys portfolio. At the end of the applicable year, the amount of capital gains that serves as the basis for the calculation of the capital gains incentive fee to be paid equals the
cumulative aggregate realized capital gains less cumulative aggregate realized capital losses, less aggregate unrealized capital depreciation, with respect to the Companys portfolio of investments. If this number is positive at the end of such
year, then the capital gains incentive fee to be paid for such year equals 20.0% of such amount, less the aggregate amount of any capital gains incentive fees paid in all prior years. As of both March 31, 2016 and December 31, 2015, the
capital gains incentive fee payable was $0. The aggregate amount of capital gains incentive fees paid from the IPO through March 31, 2016 is $348.

In addition, the Company accrues, but does not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as
appropriate. If, on a cumulative basis, the sum of net realized gains/(losses) plus net unrealized appreciation/(depreciation) decreases during a period, the Company will reverse any excess capital gains incentive fee previously accrued such that
the amount of capital gains incentive fee accrued is no more than 20.0% of the sum of net realized gains/(losses) plus net unrealized appreciation/(depreciation). During the three months ended March 31, 2016 and 2015, the Company accrued
capital gains incentive fees of $92 and $36, respectively.

The sum of the income incentive fee and the capital gains incentive fee is the
incentive fee and is reported in the consolidated statements of operations. Accrued management fees, income incentive fees and capital gains incentive fees are reported in the due to affiliates line in the consolidated statements of assets and
liabilities.

Unless terminated earlier as described below, the Investment Advisory Agreement will continue in effect from year to year if
approved annually by the Board or by the affirmative vote of the holders of a majority of the Companys outstanding voting securities, and, in either case, if also approved by a majority of the Independent Directors. The Investment Advisory
Agreement automatically terminates in the event of its assignment, as defined in the 1940 Act, by the Investment Advisor and may be terminated by either party without penalty upon not less than 60 days written notice to the other. The holders
of a majority of the Companys outstanding voting securities may also terminate the Investment Advisory Agreement without penalty.

Administration Agreement: Concurrent with the Formation Transactions, the Company also entered into an administration agreement (the
Administration Agreement) with the Investment Advisor. On June 3, 2015, the Board approved the renewal of the Administrative Agreement through June 20, 2016. Under the Administration Agreement, the Investment Advisor furnishes
the



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Company with office facilities and equipment, provides it clerical, bookkeeping and record keeping services at such facilities and provides the Company with
other administrative services necessary to conduct its day-to-day operations. The Company reimburses the Investment Advisor for the allocable portion of overhead expenses incurred in performing its obligations under the Administration Agreement,
including rent and the Companys allocable portion of the cost of its chief financial officer and chief compliance officer and their respective staffs. Under the Administration Agreement, the Investment Advisor also provides managerial
assistance to those portfolio companies to which the Company is required to provide such assistance and the Company reimburses the Investment Advisor for fees and expenses incurred with providing such services. In addition, the Company reimburses
the Investment Advisor for fees and expenses incurred while performing due diligence on the Companys prospective portfolio companies. Under the Administration Agreement, administrative expenses for services provided for the three months ended
March 31, 2016, and 2015 totaled $321 and $368, respectively. Accrued administrative expenses are reported in the due to affiliates line on the consolidated statements of assets and liabilities.

Note 6. Debt

Revolving Credit
Facility: On June 16, 2014, FIC entered into a senior secured revolving credit agreement (the Credit Facility) with ING Capital LLC (ING), as the administrative agent, collateral agent, and lender. The Credit
Facility had an initial commitment of $30,000 with an accordion feature that allows for an increase in the total commitments up to $75,000, subject to certain conditions and the satisfaction of specified financial covenants. The Credit Facility is
secured by certain portfolio investments held by the Company, but portfolio investments held by the Funds are not collateral for the Credit Facility. The stated maturity date for the Credit Facility is June 16, 2018, which may be extended by
mutual agreement.

On December 19, 2014, FIC amended the Credit Facility to (i) increase the commitment from $30,000 to $50,000
(ii) allow FIC to buy-back up to $10,000 of the Companys common stock subject to the satisfaction of specified financial covenants and conditions. The Credit Facility continues to have an accordion feature which allows for an increase in
the total commitment up to $75,000.

Amounts available to borrow under the Credit Facility are subject to a minimum borrowing/collateral
base that applies an advance rate to certain investments held by the Company. The Company is subject to limitations with respect to the investments securing the Credit Facility, including, but not limited to, restrictions on sector concentrations,
loan size, payment frequency and status and collateral interests, as well as restrictions on portfolio company leverage, which may also affect the borrowing base and therefore amounts available to borrow.

Borrowings under the Credit Facility bear interest, subject to the Companys election, on a per annum basis equal to (i) the
alternate base rate plus 2.5% or (ii) the applicable London Interbank Offered Rate, or LIBOR, which varies depending on the period of the borrowing under the Credit Facility, plus 3.5%. The alternate base rate is equal to the greater of
(i) prime rate, (ii) the federal funds rate plus 0.5% or (iii) the three-month LIBOR plus 1.0%. The Company pays a commitment fee between 0.5% and 1.0% per annum based on the size of the unused portion of the Credit Facility.

The Company has made customary representations and warranties and is required to comply with various covenants, reporting requirements
and other customary requirements for similar credit facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the Credit Facility. As of March 31, 2016 and December 31,
2015, the Company was in compliance in all material respect with the terms of the Credit Facility.

As of March 31, 2016 and
December 31, 2015, the Company had outstanding borrowings under the Credit Facility of $11,000 and $15,500, respectively. For the three months ended March 31, 2016 and 2015, interest and fees related to the Credit Facility amounted to $201
and $154, respectively, which are included in interest and financing expenses on the consolidated statements of operation. As of March 31, 2016 and December 31, 2015, accrued interest and fees payable related to the Credit Facility totaled
$13 and $101, respectively.

SBA debentures: The Company uses debenture leverage provided through the SBA to fund a portion of its
investment purchases.

Under the SBA debenture program, the SBA commits to purchase debentures issued by SBICs and such debentures are
guaranteed by the SBA. The SBA has made commitments to purchase $225,000 of SBA debentures from the Company on or before September 30, 2019. Unused commitments as of March 31, 2016 and December 31, 2015 were $11,000 and $11,500,
respectively. The SBA may limit the amount that may be drawn each year under these commitments, and each issuance of leverage is conditioned on the Companys full compliance, as determined by the SBA, with the terms and conditions set forth in
the SBIC Act.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



As of March 31, 2016 and December 31, 2015, the Companys issued and outstanding SBA debentures mature as follows:



|                                 |  |              |          |         |                    |  |       |               |  |   |                  |  |  |   |        | 
|-------------------------------- |  | ------------ | -------- | ------- | ------------------ |  | ----- | ------------- |  | - | ---------------- |  |  | - | ------ | 
|Pooling Date(1)                  |  | MaturityDate |          |         | FixedInterest Rate |  |       | March 31,2016 |  |   | December 31,2015 | 
|3/26/2008                        |  |              | 3/1/2018 |         |                    |  | 6.188 | %             |  | $ | 24,750           |  |  | $ | 24,750 | 
|9/24/2008                        |  |              | 9/1/2018 |         |                    |  | 6.442 |               |  |   | 11,950           |  |  |   | 11,950 | 
|3/25/2009                        |  |              | 3/1/2019 |         |                    |  | 5.337 |               |  |   | 19,750           |  |  |   | 19,750 | 
|9/23/2009                        |  |              | 9/1/2019 |         |                    |  | 4.950 |               |  |   | 10,000           |  |  |   | 10,000 | 
|3/24/2010                        |  |              | 3/1/2020 |         |                    |  | 4.825 |               |  |   | 13,000           |  |  |   | 13,000 | 
|9/22/2010                        |  |              | 9/1/2020 |         |                    |  | 3.932 |               |  |   | 12,500           |  |  |   | 12,500 | 
|3/29/2011                        |  |              | 3/1/2021 |         |                    |  | 4.801 |               |  |   | 1,550            |  |  |   | 1,550  | 
|9/21/2011                        |  |              | 9/1/2021 |         |                    |  | 3.594 |               |  |   | 3,250            |  |  |   | 3,250  | 
|3/21/2012                        |  |              | 3/1/2022 |         |                    |  | 3.483 |               |  |   | 3,250            |  |  |   | 3,250  | 
|3/21/2012                        |  |              | 3/1/2022 |         |                    |  | 3.051 |               |  |   | 19,000           |  |  |   | 19,000 | 
|9/19/2012                        |  |              | 9/1/2022 |         |                    |  | 2.530 |               |  |   | 11,000           |  |  |   | 11,000 | 
|9/19/2012                        |  |              | 9/1/2022 |         |                    |  | 3.049 |               |  |   | 11,500           |  |  |   | 11,500 | 
|3/27/2013                        |  |              | 3/1/2023 |         |                    |  | 3.155 |               |  |   | 3,000            |  |  |   | 3,000  | 
|9/24/2014                        |  |              | 9/1/2024 |         |                    |  | 3.775 |               |  |   | 1,000            |  |  |   | 1,000  | 
|3/25/2015                        |  |              | 3/1/2025 |         |                    |  | 3.321 |               |  |   | 5,500            |  |  |   | 5,500  | 
|3/25/2015                        |  |              | 3/1/2025 |         |                    |  | 3.277 |               |  |   | 22,500           |  |  |   | 22,500 | 
|9/23/2015                        |  |              | 9/1/2025 |         |                    |  | 3.571 |               |  |   | 16,700           |  |  |   | 16,700 | 
|3/23/2016                        |  |              | 3/1/2026 |         |                    |  | 3.267 |               |  |   | 1,500            |  |  |   | 1,500  | 
|3/23/2016                        |  |              | 3/1/2026 |         |                    |  | 3.249 |               |  |   | 21,800           |  |  |   | 21,800 | 
|(2)                              |  |              | (2       | )       |                    |  | (2    | )             |  |   | 500              |  |  |   |       | 
|                                 |  |              |          |         |                    |  |       |               |  |   |                  |  |  |   |        | 
|Total outstanding SBA debentures |  |              | $        | 214,000 |                    |  | $     | 213,500       | 
|                                 |  |              |          |         |                    |  |       |               |  |   |                  |  |  |   |        | 



|(1) | The SBA has two scheduled pooling dates for debentures (in March and in September). Certain debentures funded during the reporting periods may not be pooled until the subsequent pooling date.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | The Company issued $500 in SBA debentures which pool in September 2016, at which time the Company expects the current short-term interest rate will reset to a higher long-term fixed rate.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Interest on SBA debentures is payable semi-annually on March 1 and September 1. For the three months ended March 31, 2016 and
2015, interest and fees on outstanding SBA debentures amounted to $2,126 and $1,742, respectively, which are included in interest and financing expenses on the consolidated statements of operation. As of March 31, 2016 and December 31,
2015, accrued interest and fees payable related to the SBA debentures totaled $709 and $2,739, respectively.

Deferred Financing Costs

Deferred financing costs are amortized into interest and financing expenses on the consolidated statements of operations using the effective
interest method, over the term of the respective financing instrument. Deferred financing cost amortization for the three months ended March 31, 2016 and 2015 was $273 and $234, respectively. Deferred financing costs related to the Credit
Facility and SBA debentures as of March 31, 2016 and December 31, 2015, were as follows:



|                                     |  |                |        |   |                   |   |       |       |  |   |               |   |  |                |        |   |       |   |       |   |  |   |        |  
|------------------------------------ |  | -------------- | ------ | - | ----------------- | - | ----- | ----- |  | - | ------------- | - |  | -------------- | ------ | - | ----- | - | ----- | - |  | - | ------ | -
|                                     |  | March 31, 2016 |        |   | December 31, 2015 |  
|                                     |  | SBAdebentures  |        |   | CreditFacility    |   |       | Total |  |   | SBAdebentures |   |  | CreditFacility |        |   | Total |  
|SBA debenture commitment fees        |  | $              | 2,250  |   |                   | $ |      |       |  | $ | 2,250         |   |  | $              | 2,250  |   |       | $ |      |   |  | $ | 2,250  |  
|SBA debenture leverage fees          |  |                | 5,190  |   |                   |   |      |       |  |   | 5,190         |   |  |                | 5,177  |   |       |   |      |   |  |   | 5,177  |  
|Credit Facility upfront fees         |  |                |       |   |                   |   | 1,239 |       |  |   | 1,239         |   |  |                |       |   |       |   | 1,239 |   |  |   | 1,239  |  
|                                     |  |                |        |   |                   |   |       |       |  |   |               |   |  |                |        |   |       |   |       |   |  |   |        |  
|Subtotal                             |  |                | 7,440  |   |                   |   | 1,239 |       |  |   | 8,679         |   |  |                | 7,427  |   |       |   | 1,239 |   |  |   | 8,666  |  
|Less: accumulated amortization       |  |                | (3,507 | ) |                   |   | (560  | )     |  |   | (4,067        | ) |  |                | (3,321 | ) |       |   | (473  | ) |  |   | (3,794 | )
|                                     |  |                |        |   |                   |   |       |       |  |   |               |   |  |                |        |   |       |   |       |   |  |   |        |  
|Unamortized deferred financing costs |  | $              | 3,933  |   |                   | $ | 679   |       |  | $ | 4,612         |   |  | $              | 4,106  |   |       | $ | 766   |   |  | $ | 4,872  |  
|                                     |  |                |        |   |                   |   |       |       |  |   |               |   |  |                |        |   |       |   |       |   |  |   |        |  



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Unamortized deferred financing costs are presented as a direct offset to the SBA debentures and Credit Facility liabilities on the consolidated
statements of assets and liabilities. The following table summarizes the outstanding debt net of unamortized deferred financing costs as of March 31, 2016 and December 31, 2015:



|                                           |  |                |         |   |                   |   |        |       |  |   |               |   |  |                |         |   |       |   |        |   |  |   |         |  
|------------------------------------------ |  | -------------- | ------- | - | ----------------- | - | ------ | ----- |  | - | ------------- | - |  | -------------- | ------- | - | ----- | - | ------ | - |  | - | ------- | -
|                                           |  | March 31, 2016 |         |   | December 31, 2015 |  
|                                           |  | SBAdebentures  |         |   | CreditFacility    |   |        | Total |  |   | SBAdebentures |   |  | CreditFacility |         |   | Total |  
|Outstanding debt                           |  | $              | 214,000 |   |                   | $ | 11,000 |       |  | $ | 225,000       |   |  | $              | 213,500 |   |       | $ | 15,500 |   |  | $ | 229,000 |  
|Less: unamortized deferred financing costs |  |                | (3,933  | ) |                   |   | (679   | )     |  |   | (4,612        | ) |  |                | (4,106  | ) |       |   | (766   | ) |  |   | (4,872  | )
|                                           |  |                |         |   |                   |   |        |       |  |   |               |   |  |                |         |   |       |   |        |   |  |   |         |  
|Debt, net of deferred financing costs      |  | $              | 210,067 |   |                   | $ | 10,321 |       |  | $ | 220,388       |   |  | $              | 209,394 |   |       | $ | 14,734 |   |  | $ | 224,128 |  
|                                           |  |                |         |   |                   |   |        |       |  |   |               |   |  |                |         |   |       |   |        |   |  |   |         |  

The weighted average interest rate for all SBA debentures and borrowings outstanding under the Credit Facility
as of March 31, 2016 and December 31, 2015 was 4.1% and 4.0%, respectively.

Note 7. Commitments and Contingencies

Commitments: The Company had outstanding commitments to fund various undrawn revolving loans and other credit
facilities totaling $7,464 and $10,150 as of March 31, 2016 and December 31, 2015, respectively. Such outstanding commitments are summarized in the following table:



|                                                        |  |                 |        |  |                    |   |       |                 |  |   |                    |  |  |   |        | 
|------------------------------------------------------- |  | --------------- | ------ |  | ------------------ | - | ----- | --------------- |  | - | ------------------ |  |  | - | ------ | 
|                                                        |  | March 31, 2016  |        |  | December 31, 2015  |  
|Portfolio Company - Investment                          |  | TotalCommitment |        |  | UnfundedCommitment |   |       | TotalCommitment |  |   | UnfundedCommitment | 
|FAR Research Inc.  Revolving Loan                      |  | $               | 1,750  |  |                    | $ | 1,614 |                 |  | $ | 1,750              |  |  | $ | 1,614  | 
|Inflexxion, Inc.  Revolving Loan                       |  |                 | 1,000  |  |                    |   | 850   |                 |  |   | 1,000              |  |  |   | 850    | 
|inthinc Technology Solutions, Inc.  Subordinated Note  |  |                 | 5,000  |  |                    |   | 1,000 |                 |  |   | 5,000              |  |  |   | 1,000  | 
|Lightning Diversion Systems, LLC  Revolving Loan       |  |                 | 1,000  |  |                    |   | 1,000 |                 |  |   | 1,000              |  |  |   | 1,000  | 
|Microbiology Research Associates, Inc.  Revolving Loan |  |                 | 500    |  |                    |   | 500   |                 |  |   | 500                |  |  |   | 500    | 
|Oaktree Medical Centre, P.C.  Revolving Loan           |  |                 | 1,250  |  |                    |   |      |                 |  |   | 500                |  |  |   | 250    | 
|Restaurant Finance Co, LLC  Senior Secured Loan        |  |                 |       |  |                    |   |      |                 |  |   | 10,500             |  |  |   | 1,936  | 
|Vanguard Dealer Services, L.L.C.  Subordinated Note    |  |                 | 9,850  |  |                    |   | 2,500 |                 |  |   | 9,850              |  |  |   | 2,500  | 
|X5 Opco LLC  Revolving Loan                            |  |                 |       |  |                    |   |      |                 |  |   | 500                |  |  |   | 500    | 
|                                                        |  |                 |        |  |                    |   |       |                 |  |   |                    |  |  |   |        | 
|Total                                                   |  | $               | 20,350 |  |                    | $ | 7,464 |                 |  | $ | 30,600             |  |  | $ | 10,150 | 
|                                                        |  |                 |        |  |                    |   |       |                 |  |   |                    |  |  |   |        | 

Additional detail for each of the commitments above is provided in the Companys consolidated schedules
of investments.

The commitments are generally subject to the borrowers meeting certain criteria such as compliance with financial and
nonfinancial covenants. Since commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of
representations and warranties that provide indemnifications under certain circumstances. The Companys maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not
yet occurred. The Company expects the risk of future obligation under these indemnifications to be remote.

Legal proceedings: In
the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While the outcome of these legal proceedings cannot be predicted with certainty, the Company does
not believe these proceedings will have a material adverse effect on the Companys consolidated financial statements.

Note 8. Common Stock

The following table summarizes the total shares issued, offering price and net proceeds received in public offerings of the
Companys common stock since the IPO:



|                   |  |                 |           |     |               |   |        |                                                  |  |   |               |  |  |   |       | 
|------------------ |  | --------------- | --------- | --- | ------------- | - | ------ | ------------------------------------------------ |  | - | ------------- |  |  | - | ----- | 
|Offering Date      |  | Numberof Shares |           |     | GrossProceeds |   |        | UnderwritingFees andCommissionsand OfferingCosts |  |   | OfferingPrice | 
|September 11, 2012 |  |                 | 2,472,500 |     |               | $ | 39,807 |                                                  |  | $ | 1,855         |  |  | $ | 16.10 | 
|February 8, 2013   |  |                 | 1,725,000 |     |               |   | 30,361 |                                                  |  |   | 1,504         |  |  |   | 17.60 | 
|September 30, 2014 |  |                 | 2,083,414 | (1) |               |   | 35,418 |                                                  |  |   | 1,747         |  |  |   | 17.00 | 



|(1) | Includes 83,414 shares purchased by underwriters pursuant to the over-allotment option on October 21, 2014.
|--- | -----------------------------------------------------------------------------------------------------------



31



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



On August 21, 2014, the Company entered into an equity distribution agreement with Raymond James & Associates, Inc. and Robert W.
Baird & Co. Incorporated through which the Company could sell, by means of at-the-market offerings from time to time, shares of the Companys common stock having an aggregate offering price of up to $50,000 (the ATM
Program). The gross proceeds raised, the related sales agent commission, the offering expenses and the average price at which shares were issued under the ATM Program from August 21, 2014 through March 31, 2016 are as follow:



|                                       |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 
|-------------------------------------- |  | --------------- | ------- |  | ------------- | - | ----- | ------------------------------------------------ |  | - | -------------------- |  |  | - | ----- | 
|                                       |  | Numberof Shares |         |  | GrossProceeds |   |       | UnderwritingFees andCommissionsand OfferingCosts |  |   | AverageOfferingPrice | 
|Year Ended December 31, 2014           |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 
|Third Quarter ended September 30, 2014 |  |                 | 153,541 |  |               | $ | 2,850 |                                                  |  | $ | 56                   |  |  | $ | 18.56 | 
|Fourth Quarter ended December 31, 2014 |  |                 | 4,812   |  |               |   | 80    |                                                  |  |   | 3                    |  |  |   | 17.00 | 
|                                       |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 
|Total                                  |  |                 | 158,353 |  |               | $ | 2,930 |                                                  |  | $ | 59                   |  |  | $ | 18.51 | 
|                                       |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 
|Year Ended December 31, 2015           |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 
|First Quarter ended March 31, 2015     |  |                 | 49,193  |  |               | $ | 819   |                                                  |  | $ | 16                   |  |  | $ | 16.65 | 
|Second Quarter ended June 30, 2015     |  |                 | 141,430 |  |               |   | 2,347 |                                                  |  |   | 50                   |  |  |   | 16.60 | 
|Third Quarter ended September 30, 2015 |  |                 |        |  |               |   |      |                                                  |  |   |                     |  |  |   |      | 
|Fourth Quarter ended December 31, 2015 |  |                 |        |  |               |   |      |                                                  |  |   |                     |  |  |   |      | 
|                                       |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 
|Total                                  |  |                 | 190,623 |  |               | $ | 3,166 |                                                  |  | $ | 66                   |  |  | $ | 16.61 | 
|                                       |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 
|Year Ended December 31, 2016           |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 
|First Quarter ended March 31, 2016     |  |                 |        |  |               | $ |      |                                                  |  | $ |                     |  |  | $ |      | 
|                                       |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 
|Total                                  |  |                 |        |  |               | $ |      |                                                  |  | $ |                     |  |  | $ |      | 
|                                       |  |                 |         |  |               |   |       |                                                  |  |   |                      |  |  |   |       | 

See Note 9 for additional information regarding the issuance of shares under the DRIP.

As of March 31, 2016 and December 31, 2015, the Company had 16,312,363 and 16,300,732 shares of common stock outstanding,
respectively.

Note 9. Dividends and Distributions

The Companys dividends and distributions are recorded on the record date. The following table summarizes the dividends
paid since the Companys IPO.



|                                     |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       |    
|------------------------------------ |  | ---------- | --------- |  | ----------- |  | ---------- | --------------- |  | - | ----------------- |  |  | ---------------- | ------ |  | --------------- | - | ------ | ---------- |  | - | -------------------- | --- |  |  | ------ | --- |  | - | ----- | ---
|DateDeclared                         |  | RecordDate |           |  | PaymentDate |  |            | AmountPer Share |  |   | TotalDistribution |  |  | CashDistribution |        |  | DRIPSharesValue |   |        | DRIPShares |  |   | DRIPShareIssue Price |    
|Fiscal Year Ended December 31, 2011: |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            | 
|7/28/2011                            |  |            | 9/12/2011 |  |             |  | 9/26/2011  |                 |  | $ | 0.32              |  |  | $                | 3,016  |  |                 | $ | 3,016  |            |  | $ |                     |     |  |  |       |     |  | $ |      |    
|11/2/2011                            |  |            | 12/6/2011 |  |             |  | 12/20/2011 |                 |  |   | 0.32              |  |  |                  | 3,017  |  |                 |   | 3,017  |            |  |   |                     |     |  |  |       |     |  |   |      |    
|                                     |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       |    
|                                     |  |            |           |  |             |  |            |                 |  | $ | 0.64              |  |  | $                | 6,033  |  |                 | $ | 6,033  |            |  | $ |                     |     |  |  |       |     |  |   |       |    
|                                     |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       |    
|Fiscal Year Ended December 31, 2012: |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            | 
|2/10/2012                            |  |            | 3/14/2012 |  |             |  | 3/28/2012  |                 |  | $ | 0.34              |  |  | $                | 3,205  |  |                 | $ | 3,205  |            |  | $ |                     | (1) |  |  |       | (1) |  |   |      | (1)
|4/30/2012                            |  |            | 6/13/2012 |  |             |  | 6/27/2012  |                 |  |   | 0.36              |  |  |                  | 3,394  |  |                 |   | 3,394  |            |  |   |                     | (2) |  |  |       | (2) |  |   |      | (2)
|7/31/2012                            |  |            | 9/11/2012 |  |             |  | 9/25/2012  |                 |  |   | 0.38              |  |  |                  | 4,522  |  |                 |   | 4,010  |            |  |   | 512                  |     |  |  | 30,563 |     |  |   | 16.75 |    
|10/29/2012                           |  |            | 12/7/2012 |  |             |  | 12/21/2012 |                 |  |   | 0.38              |  |  |                  | 4,533  |  |                 |   | 4,145  |            |  |   | 388                  |     |  |  | 23,763 |     |  |   | 16.35 |    
|                                     |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       |    
|                                     |  |            |           |  |             |  |            |                 |  | $ | 1.46              |  |  | $                | 15,654 |  |                 | $ | 14,754 |            |  | $ | 900                  |     |  |  | 54,326 |     |  |   |       |    
|                                     |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       |    
|Fiscal Year Ended December 31, 2013: |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            | 
|2/22/2013                            |  |            | 3/14/2013 |  |             |  | 3/28/2013  |                 |  | $ | 0.38              |  |  | $                | 5,198  |  |                 | $ | 4,822  |            |  | $ | 376                  |     |  |  | 20,501 |     |  |   | 18.36 |    
|5/1/2013                             |  |            | 6/12/2013 |  |             |  | 6/26/2013  |                 |  |   | 0.38              |  |  |                  | 5,206  |  |                 |   | 4,893  |            |  |   | 313                  |     |  |  | 17,415 |     |  |   | 17.97 |    
|7/31/2013                            |  |            | 9/12/2013 |  |             |  | 9/26/2013  |                 |  |   | 0.38              |  |  |                  | 5,212  |  |                 |   | 4,902  |            |  |   | 310                  |     |  |  | 15,899 |     |  |   | 19.51 |    
|7/31/2013(3)                         |  |            | 9/12/2013 |  |             |  | 9/26/2013  |                 |  |   | 0.04              |  |  |                  | 549    |  |                 |   | 516    |            |  |   | 33                   |     |  |  | 1,674  |     |  |   | 19.51 |    
|11/4/2013                            |  |            | 12/6/2013 |  |             |  | 12/20/2013 |                 |  |   | 0.38              |  |  |                  | 5,219  |  |                 |   | 5,003  |            |  |   | 216                  |     |  |  | 10,448 |     |  |   | 20.72 |    
|11/4/2013(3)                         |  |            | 12/6/2013 |  |             |  | 12/20/2013 |                 |  |   | 0.38              |  |  |                  | 5,219  |  |                 |   | 5,003  |            |  |   | 216                  |     |  |  | 10,448 |     |  |   | 20.72 |    
|                                     |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       |    
|                                     |  |            |           |  |             |  |            |                 |  | $ | 1.94              |  |  | $                | 26,603 |  |                 | $ | 25,139 |            |  | $ | 1,464                |     |  |  | 76,385 |     |  |   |       |    
|                                     |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       |    
|Fiscal Year Ended December 31, 2014: |  |            |           |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            | 
|2/18/2014                            |  |            | 3/21/2014 |  |             |  | 3/31/2014  |                 |  | $ | 0.38              |  |  | $                | 5,277  |  |                 | $ | 5,028  |            |  | $ | 199                  |     |  |  | 10,410 |     |  |   | 19.14 |    
|5/5/2014                             |  |            | 6/13/2014 |  |             |  | 6/27/2014  |                 |  |   | 0.38              |  |  |                  | 5,231  |  |                 |   | 5,037  |            |  |   | 194                  |     |  |  | 9,459  |     |  |   | 20.44 |    
|5/5/2014(3)                          |  |            | 7/25/2014 |  |             |  | 7/31/2014  |                 |  |   | 0.05              |  |  |                  | 689    |  |                 |   | 664    |            |  |   | 25                   |     |  |  | 1,368  |     |  |   | 18.66 |    



32



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



|                                     |  |  |            |  |  |  |            |  |  |   |      |  |  |   |        |  |  |   |        |  |  |   |     |  |  |  |        |  |  |  |       | 
|------------------------------------ |  |  | ---------- |  |  |  | ---------- |  |  | - | ---- |  |  | - | ------ |  |  | - | ------ |  |  | - | --- |  |  |  | ------ |  |  |  | ----- | 
|5/5/2014 (3)                         |  |  | 8/25/2014  |  |  |  | 8/29/2014  |  |  |   | 0.05 |  |  |   | 689    |  |  |   | 660    |  |  |   | 29  |  |  |  | 1,567  |  |  |  | 18.48 | 
|8/5/2014                             |  |  | 9/12/2014  |  |  |  | 9/26/2014  |  |  |   | 0.38 |  |  |   | 5,293  |  |  |   | 5,095  |  |  |   | 198 |  |  |  | 11,562 |  |  |  | 17.16 | 
|11/4/2014                            |  |  | 12/5/2014  |  |  |  | 12/19/2014 |  |  |   | 0.38 |  |  |   | 6,092  |  |  |   | 5,862  |  |  |   | 230 |  |  |  | 15,574 |  |  |  | 14.71 | 
|11/4/2014(3)                         |  |  | 12/5/2014  |  |  |  | 12/19/2014 |  |  |   | 0.10 |  |  |   | 1,603  |  |  |   | 1,543  |  |  |   | 60  |  |  |  | 4,098  |  |  |  | 14.71 | 
|                                     |  |  |            |  |  |  |            |  |  |   |      |  |  |   |        |  |  |   |        |  |  |   |     |  |  |  |        |  |  |  |       | 
|                                     |  |  |            |  |  |  |            |  |  | $ | 1.72 |  |  | $ | 24,824 |  |  | $ | 23,889 |  |  | $ | 935 |  |  |  | 54,038 |  |  |  |       | 
|                                     |  |  |            |  |  |  |            |  |  |   |      |  |  |   |        |  |  |   |        |  |  |   |     |  |  |  |        |  |  |  |       | 
|Fiscal Year Ended December 31, 2015: |  |  |            |  |  |  |            |  |  |   |      |  |  |   |        |  |  |   |        |  |  |   |     |  |  |  |        |  |  |  |       | 
|2/17/2015                            |  |  | 3/12/2015  |  |  |  | 3/26/2015  |  |  | $ | 0.38 |  |  | $ | 6,099  |  |  | $ | 5,886  |  |  | $ | 213 |  |  |  | 12,922 |  |  |  | 16.46 | 
|5/5/2015                             |  |  | 6/11/2015  |  |  |  | 6/25/2015  |  |  |   | 0.38 |  |  |   | 6,176  |  |  |   | 5,968  |  |  |   | 208 |  |  |  | 12,883 |  |  |  | 16.18 | 
|5/5/2015(3)                          |  |  | 6/11/2015  |  |  |  | 6/25/2015  |  |  |   | 0.02 |  |  |   | 325    |  |  |   | 314    |  |  |   | 11  |  |  |  | 678    |  |  |  | 16.18 | 
|8/3/2015                             |  |  | 9/17/2015  |  |  |  | 9/25/2015  |  |  |   | 0.39 |  |  |   | 6,345  |  |  |   | 6,097  |  |  |   | 248 |  |  |  | 16,985 |  |  |  | 14.61 | 
|11/2/2015(3)                         |  |  | 11/27/2015 |  |  |  | 12/11/2015 |  |  |   | 0.04 |  |  |   | 651    |  |  |   | 624    |  |  |   | 27  |  |  |  | 2,034  |  |  |  | 13.43 | 
|11/2/2015                            |  |  | 12/4/2015  |  |  |  | 12/18/2015 |  |  |   | 0.39 |  |  |   | 6,351  |  |  |   | 6,157  |  |  |   | 194 |  |  |  | 13,570 |  |  |  | 14.29 | 
|                                     |  |  |            |  |  |  |            |  |  |   |      |  |  |   |        |  |  |   |        |  |  |   |     |  |  |  |        |  |  |  |       | 
|                                     |  |  |            |  |  |  |            |  |  | $ | 1.60 |  |  | $ | 25,947 |  |  | $ | 25,046 |  |  | $ | 901 |  |  |  | 59,072 |  |  |  |       | 
|                                     |  |  |            |  |  |  |            |  |  |   |      |  |  |   |        |  |  |   |        |  |  |   |     |  |  |  |        |  |  |  |       | 
|Fiscal Quarter Ended March 31, 2016: |  |  |            |  |  |  |            |  |  |   |      |  |  |   |        |  |  |   |        |  |  |   |     |  |  |  |        |  |  |  |       | 
|2/16/2016                            |  |  | 3/11/2016  |  |  |  | 3/25/2016  |  |  | $ | 0.39 |  |  | $ | 6,357  |  |  | $ | 6,177  |  |  | $ | 180 |  |  |  | 11,631 |  |  |  | 15.49 | 



|(1) | Satisfied $591 of DRIP participation with the purchase of 43,029 shares of common stock in the open market at an average price of $13.73.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------

|(2) | Satisfied $600 of DRIP participation with the purchase of 40,196 shares of common stock in the open market at an average price of $14.94.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------

|(3) | Special dividend.
|--- | -----------------

Since the Companys IPO, dividends and distributions to stockholders
total $105,418 or $7.75 per share.

Note 10. Financial Highlights

The following is a schedule of financial highlights for the three months ended March 31, 2016 and 2015:



|                                                                    |  |                              |            |   |      |   |            |  
|------------------------------------------------------------------- |  | ---------------------------- | ---------- | - | ---- | - | ---------- | -
|                                                                    |  | Three months ended March 31, |           
|                                                                    |  | 2016                         |            |   | 2015 |  
|Per share data:                                                     |  |                              |            |   |      |   |            |  
|Net asset value at beginning of period                              |  | $                            | 15.17      |   |      | $ | 15.16      |  
|Net investment income (1)                                           |  |                              | 0.43       |   |      |   | 0.39       |  
|Net realized (loss) on investments, net of tax benefit (refund) (1) |  |                              | (0.02      | ) |      |   |           |  
|Net unrealized appreciation on investments
(1)                      |  |                              | 0.05       |   |      |   | 0.01       |  
|                                                                    |  |                              |            |   |      |   |            |  
|Total increase from investment operations
(1)                       |  |                              | 0.46       |   |      |   | 0.40       |  
|Accretive effect of share issuance above NAV                        |  |                              |           |   |      |   | 0.01       |  
|Dividends to stockholders                                           |  |                              | (0.39      | ) |      |   | (0.38      | )
|Other (2)                                                           |  |                              | 0.01       |   |      |   | (0.01      | )
|                                                                    |  |                              |            |   |      |   |            |  
|Net asset value at end of period                                    |  | $                            | 15.25      |   |      | $ | 15.18      |  
|                                                                    |  |                              |            |   |      |   |            |  
|Market value at end of period                                       |  | $                            | 15.51      |   |      | $ | 15.37      |  
|                                                                    |  |                              |            |   |      |   |            |  
|Shares outstanding at end of period                                 |  |                              | 16,312,363 |   |      |   | 16,113,152 |  
|Weighted average shares outstanding during the period               |  |                              | 16,301,499 |   |      |   | 16,060,057 |  
|Ratios to average net assets:                                       |  |                              |            |   |      |   |            |  
|Expenses other than incentive fee
(3)                               |  |                              | 9.2        | % |      |   | 8.3        | %
|Incentive fee(3)                                                    |  |                              | 3.0        | % |      |   | 2.6        | %
|                                                                    |  |                              |            |   |      |   |            |  
|Total expenses (3)                                                  |  |                              | 12.2       | % |      |   | 10.9       | %
|Net investment income (3)                                           |  |                              | 11.4       | % |      |   | 10.2       | %
|Total return (4)                                                    |  |                              | 16.1       | % |      |   | 6.1        | %
|Net assets at end of period                                         |  | $                            | 248,725    |   |      | $ | 244,668    |  
|Average debt outstanding                                            |  | $                            | 227,000    |   |      | $ | 186,400    |  
|Average debt per share (1)                                          |  | $                            | 13.93      |   |      | $ | 11.61      |  
|Portfolio turnover ratio (3)                                        |  |                              | 28.1       | % |      |   | 24.4       | %



|(1) | Weighted average per share data.
|--- | --------------------------------

|(2) | Represents the impact of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction
date.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Annualized for periods less than one year.
|--- | ------------------------------------------

|(4) | The total return for the three months ended March 31, 2016 and 2015 equals the change in the market value of the Companys common stock per share during the period plus dividends paid per share during the
period, divided by the market value per share at the beginning of the period.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)



Note 11. Subsequent Events

On May 2,
2016, the Board declared a regular quarterly dividend of $0.39 per share payable on June 24, 2016 to stockholders of record as of June 10, 2016.



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##### Table of Contents

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

The following discussion and analysis of our financial condition and results of operations should be read in
conjunction with Fidus Investment Corporations consolidated financial statements and related notes appearing in our annual report on Form 10-K for the year ended December 31, 2015, filed with the U.S. Securities and Exchange Commission
(SEC) on March 3, 2016. The information contained in this section should also be read in conjunction with our unaudited consolidated financial statements and related notes thereto appearing elsewhere in this quarterly report on Form
10-Q.

Except as otherwise specified, references to we, us, our, Fidus and
FIC refer to Fidus Investment Corporation and its consolidated subsidiaries.

Forward Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking
statements are not historical facts, but rather are based on current expectations, estimates and projections about Fidus Investment Corporation, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words
such as anticipates, expects, intends, plans, will, may, continue, believes, seeks, estimates, would,
could, should, targets, projects and variations of these words and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this Quarterly
Report on Form 10-Q involve risks and uncertainties, including statements as to:



| |  |  | our future operating results;
| | - |  | -----------------------------



| |  |  | our business prospects and the prospects of our portfolio companies;
| | - |  | --------------------------------------------------------------------



| |  |  | the impact of investments that we expect to make;
| | - |  | -------------------------------------------------



| |  |  | our contractual arrangements and relationships with third parties;
| | - |  | ------------------------------------------------------------------



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



| |  |  | the ability of our portfolio companies to achieve their objectives;
| | - |  | -------------------------------------------------------------------



| |  |  | our expected financing and investments;
| | - |  | ---------------------------------------



| |  |  | the adequacy of our cash resources and working capital; and
| | - |  | -----------------------------------------------------------



| |  |  | the timing of cash flows, if any, from the operations of our portfolio companies.
| | - |  | ---------------------------------------------------------------------------------

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



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



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



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



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



| |  |  | the risks, uncertainties and other factors we identify in Item 1A.  Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2015, elsewhere in this Quarterly
Report on Form 10-Q and in our other filings with the SEC.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Although we believe that the assumptions on which these
forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include our
ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this
Quarterly Report on Form 10-Q should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in Item 1.A  Risk Factors contained
in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 3, 2016. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report
on Form 10-Q.



35



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##### Table of Contents

Overview

We provide customized debt and equity financing solutions to lower middle-market companies, which we define as U.S. based companies having
revenues between $10.0 million and $150.0 million. Our investment objective is to provide attractive risk-adjusted returns by generating both current income from our debt investments and capital appreciation from our equity related investments. Our
investment strategy includes partnering with business owners, management teams and financial sponsors by providing customized financing for ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth
initiatives. We seek to maintain a diversified portfolio of investments in order to help mitigate the potential effects of adverse economic events related to particular companies, regions or industries.

FIC was formed as a Maryland corporation on February 14, 2011. We completed our initial public offering, or IPO, in June 2011, and
completed additional underwritten public offerings of our common stock in September 2012, February 2013 and September 2014 providing approximately $174.1 million in net proceeds after deducting underwriting fees and offering costs.

On June 20, 2011, FIC acquired all of the limited partnership interests of Fund I and membership interests of FMCGP through the Formation
Transactions, resulting in Fund I becoming our wholly-owned SBIC subsidiary. Immediately following the Formation Transactions, we and Fund I elected to be treated as BDCs under the 1940 Act and our investment activities have been managed by Fidus
Investment Advisors, LLC, our investment advisor, and supervised by our board of directors, a majority of whom are independent of us. On March 29, 2013, we commenced operations of a second wholly-owned subsidiary, Fund II. Fund I and Fund II
are collectively referred to as the Funds.

Fund I received its SBIC license on October 22, 2007 and Fund II received its
SBIC license on May 28, 2013. We plan to continue to operate the Funds as SBICs, subject to SBA approval, and to utilize the proceeds of the sale of SBA-guaranteed debentures to enhance returns to our stockholders. We have also made, and
continue to make, investments directly through FIC. We believe that utilizing FIC and the Funds as investment vehicles provides us with access to a broader array of investment opportunities. Based on the current capitalization of the Funds, we have
approximately $11.0 million of remaining borrowing capacity under the SBIC Debenture Program and intend to fully utilize such capacity over the ensuing 3-6 months.

Revenues: We generate revenue in the form of interest income on debt investments and capital gains and distributions, if any, on equity
investments. Our debt investments, whether in the form of mezzanine, senior secured or unitranche loans, typically have terms of five to seven years and bear interest at a fixed rate but may bear interest at a floating rate. In some instances, we
receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity dates. The frequency or volume of these
repayments fluctuates significantly from period to period. Our portfolio activity may reflect the proceeds of sales of securities. In some cases, our investments provide for deferred interest payments or PIK interest. The principal amount of loans
and any accrued but unpaid interest generally become due at the maturity date. In addition, we may generate revenue in the form of commitment, origination, amendment, or structuring fees and fees for providing managerial assistance. Loan origination
fees, original issue discount and market discount or premium, if any, are capitalized, and we accrete or amortize such amounts into interest income. We record prepayment premiums on loans as fee income. Interest and dividend income is recorded on
the accrual basis to the extent that we expect to collect such amounts. Loans or preferred equity securities are placed on non-accrual status when principal, interest or dividend payments become materially past due, or when there is reasonable doubt
that principal, interest or dividends will be collected. See Critical Accounting Policies and Use of Estimates  Revenue Recognition. Interest and dividend income is accrued based upon the outstanding principal amount and
contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. Dividend income is recorded as dividends are declared or at the point an obligation exists for the portfolio company to make a distribution.
Distributions of earnings from portfolio companies are evaluated to determine if the distribution is a distribution of earnings or a return of capital.

We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the cost basis
of the investment, without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments that are measured at fair value as a component of the net change in unrealized appreciation
(depreciation) on investments in the consolidated statements of operations.

Expenses: All investment professionals of our
investment advisor and/or its affiliates, when and to the extent engaged in providing investment advisory and management services to us, and the compensation and routine overhead expenses allocable to personnel who provide these services to us, are
provided and paid for by our investment advisor and not by us. We bear all other out-of-pocket costs and expenses of our operations and transactions, including, without limitation, those relating to:



| |  |  | organization;
| | - |  | -------------



| |  |  | calculating our net asset value (including the cost and expenses of any independent valuation firm);
| | - |  | ----------------------------------------------------------------------------------------------------



| |  |  | fees and expenses incurred by our investment advisor under the Investment Advisory Agreement or payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal affairs for us
and in monitoring our investments and performing due diligence on our prospective portfolio companies or otherwise relating to, or associated with, evaluating and making investments;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

| |  |  | interest payable on debt, if any, incurred to finance our investments;
| | - |  | ----------------------------------------------------------------------



| |  |  | offerings of our common stock and other securities;
| | - |  | ---------------------------------------------------



| |  |  | investment advisory fees and management fees;
| | - |  | ---------------------------------------------



| |  |  | administration fees and expenses, if any, payable under the Administration Agreement (including payments under the Administration Agreement between us and our investment advisor based upon our allocable portion of our
investment advisors overhead in performing its obligations under the Administration Agreement, including rent and the allocable portion of the cost of our officers, including our chief compliance officer, our chief financial officer, and their
respective staffs);
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | transfer agent, dividend agent and custodial fees and expenses;
| | - |  | ---------------------------------------------------------------



| |  |  | federal and state registration fees;
| | - |  | ------------------------------------



| |  |  | all costs of registration and listing our shares on any securities exchange;
| | - |  | ----------------------------------------------------------------------------



| |  |  | U.S. federal, state and local taxes;
| | - |  | ------------------------------------



| |  |  | Independent Directors fees and expenses;
| | - |  | -----------------------------------------



| |  |  | costs of preparing and filing reports or other documents required by the SEC or other regulators including printing costs;
| | - |  | --------------------------------------------------------------------------------------------------------------------------



| |  |  | costs of any reports, proxy statements or other notices to stockholders, including printing and mailing costs;
| | - |  | --------------------------------------------------------------------------------------------------------------



| |  |  | our allocable portion of any fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | proxy voting expenses; and
| | - |  | --------------------------



| |  |  | all other expenses reasonably incurred by us or our investment advisor in connection with administering our business.
| | - |  | ---------------------------------------------------------------------------------------------------------------------

Portfolio Composition, Investment Activity and Yield

During the three months ended March 31, 2016, we invested $42.3 million in debt and equity investments, including three new portfolio
companies. These investments consisted of subordinated notes ($39.3 million, or 92.9%), senior secured loans ($1.4 million, or 3.2%), and equity securities ($1.6 million, or 3.9%). During the three months ended March 31, 2016 we received
proceeds from sales or repayments, including principal, return of capital dividends and net realized gains (losses), of $31.6 million. During the three months ended March 31, 2015, we invested $39.6 million in debt and equity investments,
including five new portfolio companies. These investments consisted of subordinated notes ($24.8 million, or 62.7%), senior secured loans ($12.8 million, or 32.3%), equity securities ($1.8 million, or 4.5%), and warrants ($0.2 million, or 0.5%).
During the three months ended March 31, 2015 we received proceeds from sales or repayments, including principal, return of capital dividends and net realized gains (losses), of $24.7 million.

As of March 31, 2016, the fair value of our investment portfolio totaled $455.7 million and consisted of 53 portfolio companies. As of
March 31, 2016, one debt investment bore interest at a variable rate, which represented $8.5 million of our portfolio on a fair value basis, and the remainder of our debt portfolio was comprised of fixed rate investments. Overall, the portfolio
had net unrealized depreciation of $4.3 million as of March 31, 2016. As of March 31, 2016, our average portfolio company investment at amortized cost was $9.2 million (which excludes three investments in portfolio companies that sold
their operations and are in the process of winding down).

As of December 31, 2015, the fair value of our investment portfolio
totaled $443.3 million and consisted of 53 portfolio companies. As of December 31, 2015, one debt investment bore interest at a variable rate, which represented $8.9 million of our portfolio on a fair value basis, and the remainder of our debt
portfolio was comprised of fixed rate investments. Overall, the portfolio had net unrealized depreciation of $5.1 million as of December 31, 2015. As of December 31, 2015, our average portfolio company investment at amortized cost was $9.0
million (which excludes three investments in portfolio companies that sold their operations and are in the process of winding down).

The
weighted average yield on debt investments as of both March 31, 2016 and December 31, 2015 was 13.3%. The weighted average yields were computed using the effective interest rates for debt investments at cost as of both March 31, 2016
and December 31, 2015, including the accretion of original issue discount and loan origination fees, but excluding investments on non-accrual status, if any.



37



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##### Table of Contents

The following table shows the portfolio composition by investment type at fair value and cost and
as a percentage of total investments:



|                     |  |                        |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|-------------------- |  | ---------------------- | ------- |  | ----------------- |  | ----- | -------------- |  | - | ----------------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | -
|                     |  | Fair Value             |         |  | Cost              | 
|                     |  | March 31, 2016         |         |  | December 31, 2015 |  |       | March 31, 2016 |  |   | December 31, 2015 | 
|                     |  | (dollars in thousands) |        
|Subordinated notes   |  | $                      | 329,715 |  |                   |  | 72.4  | %              |  | $ | 300,467           |  |  |  | 67.8  | % |  | $ | 342,857 |  |  |  | 74.5  | % |  | $ | 309,899 |  |  |  | 69.2  | %
|Senior secured loans |  |                        | 64,712  |  |                   |  | 14.2  |                |  |   | 88,485            |  |  |  | 20.0  |   |  |   | 66,502  |  |  |  | 14.5  |   |  |   | 88,505  |  |  |  | 19.7  |  
|Equity               |  |                        | 51,515  |  |                   |  | 11.3  |                |  |   | 44,899            |  |  |  | 10.1  |   |  |   | 43,617  |  |  |  | 9.5   |   |  |   | 42,651  |  |  |  | 9.5   |  
|Warrants             |  |                        | 9,555   |  |                   |  | 2.1   |                |  |   | 9,233             |  |  |  | 2.1   |   |  |   | 6,822   |  |  |  | 1.5   |   |  |   | 7,098   |  |  |  | 1.6   |  
|Royalty rights       |  |                        | 185     |  |                   |  |      |                |  |   | 185               |  |  |  |      |   |  |   | 185     |  |  |  |      |   |  |   | 185     |  |  |  |      |  
|                     |  |                        |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|Total                |  | $                      | 455,682 |  |                   |  | 100.0 | %              |  | $ | 443,269           |  |  |  | 100.0 | % |  | $ | 459,983 |  |  |  | 100.0 | % |  | $ | 448,338 |  |  |  | 100.0 | %
|                     |  |                        |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  

The following table shows portfolio composition by geographic region at fair value and cost and as a
percentage of total investments. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio companys business.



|          |  |                        |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|--------- |  | ---------------------- | ------- |  | ----------------- |  | ----- | -------------- |  | - | ----------------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | -
|          |  | Fair Value             |         |  | Cost              | 
|          |  | March 31, 2016         |         |  | December 31, 2015 |  |       | March 31, 2016 |  |   | December 31, 2015 | 
|          |  | (dollars in thousands) |        
|Midwest   |  | $                      | 129,809 |  |                   |  | 28.5  | %              |  | $ | 119,291           |  |  |  | 26.8  | % |  | $ | 123,129 |  |  |  | 26.8  | % |  | $ | 116,015 |  |  |  | 25.9  | %
|Northeast |  |                        | 105,611 |  |                   |  | 23.2  |                |  |   | 93,430            |  |  |  | 21.1  |   |  |   | 103,947 |  |  |  | 22.6  |   |  |   | 92,492  |  |  |  | 20.6  |  
|Southeast |  |                        | 104,926 |  |                   |  | 23.0  |                |  |   | 107,975           |  |  |  | 24.4  |   |  |   | 115,351 |  |  |  | 25.1  |   |  |   | 113,430 |  |  |  | 25.3  |  
|West      |  |                        | 72,201  |  |                   |  | 15.8  |                |  |   | 84,648            |  |  |  | 19.1  |   |  |   | 63,612  |  |  |  | 13.8  |   |  |   | 77,028  |  |  |  | 17.2  |  
|Southwest |  |                        | 43,135  |  |                   |  | 9.5   |                |  |   | 37,925            |  |  |  | 8.6   |   |  |   | 53,944  |  |  |  | 11.7  |   |  |   | 49,373  |  |  |  | 11.0  |  
|          |  |                        |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|Total     |  | $                      | 455,682 |  |                   |  | 100.0 | %              |  | $ | 443,269           |  |  |  | 100.0 | % |  | $ | 459,983 |  |  |  | 100.0 | % |  | $ | 448,338 |  |  |  | 100.0 | %
|          |  |                        |         |  |                   |  |       |                |  |   |                   |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  

The following table shows the detailed industry composition of our portfolio at fair value and cost as a
percentage of total investments:



|                                  |  |               |       |   |                  |  |       |               |  |  |                  |   |  |  |       |  
|--------------------------------- |  | ------------- | ----- | - | ---------------- |  | ----- | ------------- |  |  | ---------------- | - |  |  | ----- | -
|                                  |  | Fair Value    |       |   | Cost             | 
|                                  |  | March 31,2016 |       |   | December 31,2015 |  |       | March 31,2016 |  |  | December 31,2015 |  
|Healthcare products               |  |               | 13.6  | % |                  |  | 11.4  | %             |  |  | 12.4             | % |  |  | 10.4  | %
|Aerospace & defense manufacturing |  |               | 10.2  |   |                  |  | 10.5  |               |  |  | 8.5              |   |  |  | 8.7   |  
|Transportation services           |  |               | 9.0   |   |                  |  | 8.1   |               |  |  | 8.4              |   |  |  | 7.6   |  
|Healthcare services               |  |               | 8.7   |   |                  |  | 11.1  |               |  |  | 8.8              |   |  |  | 11.2  |  
|Specialty distribution            |  |               | 8.0   |   |                  |  | 8.0   |               |  |  | 7.5              |   |  |  | 7.7   |  
|Consumer products                 |  |               | 5.1   |   |                  |  | 5.1   |               |  |  | 4.8              |   |  |  | 5.0   |  
|Utility equipment manufacturing   |  |               | 4.4   |   |                  |  | 4.6   |               |  |  | 4.4              |   |  |  | 4.6   |  
|Building products manufacturing   |  |               | 4.0   |   |                  |  | 4.0   |               |  |  | 3.5              |   |  |  | 3.6   |  
|Industrial cleaning & coatings    |  |               | 3.9   |   |                  |  | 3.9   |               |  |  | 4.0              |   |  |  | 4.1   |  
|Business services                 |  |               | 3.7   |   |                  |  | 5.4   |               |  |  | 4.2              |   |  |  | 5.7   |  
|Capital equipment manufacturing   |  |               | 3.0   |   |                  |  |      |               |  |  | 3.0              |   |  |  |      |  
|Information technology services   |  |               | 2.9   |   |                  |  | 3.0   |               |  |  | 3.1              |   |  |  | 3.2   |  
|Financial services                |  |               | 2.9   |   |                  |  | 3.1   |               |  |  | 2.6              |   |  |  | 2.8   |  
|Oil & gas services                |  |               | 2.7   |   |                  |  | 3.7   |               |  |  | 4.4              |   |  |  | 4.5   |  
|Promotional products              |  |               | 2.6   |   |                  |  |      |               |  |  | 2.6              |   |  |  |      |  
|Safety products manufacturing     |  |               | 2.4   |   |                  |  | 2.4   |               |  |  | 2.3              |   |  |  | 2.4   |  
|Component manufacturing           |  |               | 2.2   |   |                  |  | 3.8   |               |  |  | 2.4              |   |  |  | 4.0   |  
|Printing services                 |  |               | 2.2   |   |                  |  | 2.2   |               |  |  | 2.3              |   |  |  | 2.3   |  
|Restaurants                       |  |               | 2.1   |   |                  |  | 2.0   |               |  |  | 2.0              |   |  |  | 2.0   |  
|Specialty chemicals               |  |               | 1.7   |   |                  |  | 1.7   |               |  |  | 1.9              |   |  |  | 1.9   |  
|Laundry services                  |  |               | 1.5   |   |                  |  | 1.5   |               |  |  | 1.4              |   |  |  | 1.4   |  
|Apparel distribution              |  |               | 1.3   |   |                  |  | 1.3   |               |  |  | 1.3              |   |  |  | 1.3   |  
|Vending equipment manufacturing   |  |               | 0.8   |   |                  |  | 0.8   |               |  |  | 0.9              |   |  |  | 0.9   |  
|Electronic components supplier    |  |               | 0.5   |   |                  |  | 0.4   |               |  |  | 0.3              |   |  |  | 0.3   |  
|Retail                            |  |               | 0.4   |   |                  |  | 0.3   |               |  |  | 0.2              |   |  |  | 0.2   |  
|Commercial cleaning               |  |               | 0.2   |   |                  |  | 0.2   |               |  |  | 0.2              |   |  |  | 0.2   |  
|Retail cleaning                   |  |               |      |   |                  |  | 0.1   |               |  |  | 2.6              |   |  |  | 2.7   |  
|Specialty cracker manufacturing   |  |               |      |   |                  |  |      |               |  |  |                 |   |  |  |      |  
|Telecommunication services        |  |               |      |   |                  |  | 1.4   |               |  |  |                 |   |  |  | 1.3   |  
|                                  |  |               |       |   |                  |  |       |               |  |  |                  |   |  |  |       |  
|Total                             |  |               | 100.0 | % |                  |  | 100.0 | %             |  |  | 100.0            | % |  |  | 100.0 | %
|                                  |  |               |       |   |                  |  |       |               |  |  |                  |   |  |  |       |  



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##### Table of Contents

Portfolio Asset Quality

In addition to various risk management and monitoring tools, our investment advisor uses an internally developed investment rating system to
characterize and monitor the credit profile and our expected level of returns on each investment in our portfolio. We use a five-level numeric rating scale. The following is a description of the conditions associated with each investment rating:



| |  |  | Investment Rating 1 is used for investments that involve the least amount of risk in our portfolio. The portfolio company is performing above expectations and the trends and risk factors are favorable, and may include
an expected capital gain.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Investment Rating 2 is used for investments that involve a level of risk similar to the risk at the time of origination. The portfolio company is performing substantially within our expectations and the risk factors are
neutral or favorable. Each new portfolio investment enters our portfolio with Investment Rating 2.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Investment Rating 3 is used for investments performing below expectations and indicates the investments risk has increased somewhat since origination. The portfolio company requires closer monitoring, but we
expect a full return of principal and collection of all interest and/or dividends.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Investment Rating 4 is used for investments performing materially below expectations and the risk has increased materially since origination. The portfolio company has the potential for some loss of investment return,
but we expect no loss of principal.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Investment Rating 5 is used for investments performing substantially below our expectations and the risks have increased substantially since origination. We expect some loss of principal.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The following table shows the distribution of our investments on the 1 to 5 investment rating scale at fair value as of March 31, 2016
and December 31, 2015:



|                  |  |                          |         |  |                          |  |       |                          |  |   |                          |  |  |  |       |  
|----------------- |  | ------------------------ | ------- |  | ------------------------ |  | ----- | ------------------------ |  | - | ------------------------ |  |  |  | ----- | -
|                  |  | As of March 31, 2016     |         |  | As of December 31, 2015  | 
|Investment Rating |  | Investments atFair Value |         |  | Percentof TotalPortfolio |  |       | Investments atFair Value |  |   | Percentof TotalPortfolio | 
|                  |  | (dollars in thousands)   |        
|1                 |  | $                        | 73,169  |  |                          |  | 16.0  | %                        |  | $ | 77,875                   |  |  |  | 17.6  | %
|2                 |  |                          | 296,124 |  |                          |  | 65.0  |                          |  |   | 268,285                  |  |  |  | 60.4  |  
|3                 |  |                          | 73,226  |  |                          |  | 16.1  |                          |  |   | 95,981                   |  |  |  | 21.7  |  
|4                 |  |                          | 13,104  |  |                          |  | 2.9   |                          |  |   | 1,128                    |  |  |  | 0.3   |  
|5                 |  |                          | 59      |  |                          |  |      |                          |  |   |                         |  |  |  |      |  
|                  |  |                          |         |  |                          |  |       |                          |  |   |                          |  |  |  |       |  
|Totals            |  | $                        | 455,682 |  |                          |  | 100.0 | %                        |  | $ | 443,269                  |  |  |  | 100.0 | %
|                  |  |                          |         |  |                          |  |       |                          |  |   |                          |  |  |  |       |  

Based on our investment rating system, the weighted average rating of our portfolio as of March 31, 2016
and December 31, 2015 was 2.1 and 2.0, respectively, on a fair value basis.

Non-Accrual

As of March 31, 2016, we had debt investments in one portfolio company on non-accrual status, which had an aggregate cost and fair value
of $5.2 million and $0 million, respectively. For the three months ended March 31, 2016, we recognized unrealized depreciation on non-accrual investments of $0.6 million. As of December 31, 2015, we had debt investments in one portfolio
company on non-accrual status, which had an aggregate cost and fair value of $5.2 million and $0.6 million, respectively. For the year ended December 31, 2015, we recognized unrealized depreciation on non-accrual investments of $4.4 million.

Discussion and Analysis of Results of Operations

Comparison of three months ended March 31, 2016 and March 31, 2015

Investment Income

For the
three months ended March 31, 2016, total investment income was $14.7 million, an increase of $1.9 million, or 14.4%, over the $12.8 million of total investment income for the three months ended March 31, 2015. The increase was attributable
to a $1.5 million increase in interest income resulting largely from higher average levels of debt investments outstanding, a $0.1 million increase in dividend income due to increased levels of distributions received from equity investments and a
$0.2 million increase in fee income resulting from a higher level of prepayment activity for the three months ended March 31, 2016, as compared to the three months ended March 31, 2015.



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##### Table of Contents

Expenses

For the three months ended March 31, 2016, total expenses, including income tax provision, were $7.6 million, an increase of $1.0 million
or 15.1%, over the $6.6 million of total expenses, including income tax provision, for the three months ended March 31, 2015. Interest and financing expenses for the three months ended March 31, 2016 were $2.6 million, an increase of $0.5
million or 22.1%, compared to $2.1 million for the three months ended March 31, 2015 as a result of higher average balances of SBA debentures and borrowings under the Credit Facility outstanding during 2016. The base management fee increased
$0.2 million, or 10.7%, to $2.0 million for the three months ended March 31, 2016 due to higher average total assets less cash and cash equivalents for the three months ended March 31, 2016 than the three months ended March 31, 2015.
The incentive fee for the three months ended March 31, 2016 was $1.9 million, a $0.3 million, or 17.6%, increase from the $1.6 million incentive fee for the three months ended March 31, 2015 which was primarily the result of a $0.2 million
increase in the income incentive fee to $1.8 million. The administrative service fee, professional fees and other general and administrative expenses totaled $1.1 million for both the three months ended March 31, 2016 and March 31, 2015.

Net Investment Income

Net investment income for the three months ended March 31, 2016 was $7.1 million, which was an increase of $0.9 million, or 13.7%,
compared to net investment income of $6.2 million during the three months ended March 31, 2015 as a result of the $1.9 million increase in total investment income and the $1.0 million increase in total expenses, including income tax provision.

Net Increase in Net Assets Resulting From Operations

For the three months ended March 31, 2016, the total realized loss on investments was $0.3 million. Significant realized (losses) for the
three months ended March 31, 2016 are summarized below:



|                                       |  |                           |  |                             |      |  
|-------------------------------------- |  | ------------------------- |  | --------------------------- | ---- | -
|Portfolio Company                      |  | Realization Event         |  | RealizedLosses(in millions) |     
|Continental Anesthesia Management, LLC |  | Exit of portfolio company |  | $                           | (0.3 | )
|                                       |  |                           |  |                             |      |  
|                                       |  |                           |  | $                           | (0.3 | )
|                                       |  |                           |  |                             |      |  

For the three months ended March 31, 2015, we did not record any realized gains or losses on investments.

During the three months ended March 31, 2016, we recorded a net change in unrealized appreciation on investments of $0.8 million
attributable to (i) the reversal of net unrealized depreciation on investments of $0.9 million related to the exit or sale of investments, resulting in unrealized appreciation, (ii) net unrealized depreciation of $5.9 million on debt
investments and (iii) net unrealized appreciation of $5.8 million on equity investments. During the three months ended March 31, 2015, we recorded a net change in unrealized appreciation on investments of $0.2 million attributable to
(i) the reversal of net unrealized depreciation on investments of $0.3 million related to the exit or sale of investments, resulting in unrealized appreciation, (ii) net unrealized depreciation of $1.4 million on debt investments and
(iii) net unrealized appreciation of $1.3 million on equity investments.

As a result of these events, our net increase in net assets
resulting from operations during the three months ended March 31, 2016 was $7.5 million, or an increase of $1.1 million, or 17.6%, compared to a net increase in net assets resulting from operations of $6.4 million during the prior year period.

Liquidity and Capital Resources

As of March 31, 2016, we had $13.0 million in cash and cash equivalents and our net assets totaled $475.5 million. We believe that our
current cash and cash equivalents on hand, our continued access to SBA-guaranteed debentures, our Credit Facility and our anticipated cash flows from operations will provide adequate capital resources with which to operate and finance our investment
business and make distributions to our stockholders for at least the next 12 months. We intend to generate additional cash primarily from the future offerings of securities (including the ATM Program) and future borrowings, as well as cash flows
from operations, including income earned from investments in our portfolio companies. On both a short-term and long-term basis, our primary use of funds will be investments in portfolio companies and cash distributions to our stockholders.

Cash Flows

For the three
months ended March 31, 2016, we experienced a net decrease in cash and cash equivalents in the amount of $18.6 million. During that period, we used $8.4 million of cash for operating activities, primarily for the funding of $42.3 million of
investments, which was partially offset by the proceeds from sales and repayments of investments of $31.6 million. During the same period, we received proceeds from the issuance of SBA debentures of $0.5 million, which were partially offset by net
repayment of borrowings under the Credit Facility of $4.5 million, cash dividends paid to stockholders of $6.2 million and the payment of deferred financing costs of less than $0.1 million.



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For the three months ended March 31, 2015, we experienced a net decrease in cash and cash
equivalents in the amount of $13.0 million. During that period, we used $12.8 million of cash for operating activities, primarily for the funding of $39.6 million of investments, which was partially offset by the proceeds from sales and repayments
of investments of $24.7 million. During the same period, we used $0.1 million for financing activities resulting from proceeds received from stock offerings, net of expenses, of $0.9 million, proceeds from the issuance of SBA debentures of $5.0
million and net borrowings under the Credit Facility of $0.8 million, which were partially offset by cash dividends paid to stockholders of $5.9 million and payments of financing costs totaling $0.9 million.

Capital Resources

We
anticipate that we will continue to fund our investment activities on a long-term basis through a combination of additional debt and equity capital.

The Funds are licensed SBICs, and have the ability to issue debentures guaranteed by the SBA at favorable interest rates. Under the Small
Business Investment Act and the SBA rules applicable to SBICs, an SBIC can have outstanding at any time debentures guaranteed by the SBA in an amount up to twice its regulatory capital. The SBA regulations currently limit the amount that is
available to be borrowed by any SBIC and guaranteed by the SBA to 200.0% of an SBICs regulatory capital or $150.0 million, whichever is less. For three or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot
exceed $350.0 million. SBA debentures have fixed interest rates that approximate prevailing 10-year Treasury Note rates plus a spread and have a maturity of ten years with interest payable semi-annually. The principal amount of the SBA debentures is
not required to be paid before maturity but may be pre-paid at any time. As of March 31, 2016, Fund I had $150.0 million of outstanding SBA debentures and cannot issue additional SBA debentures. As of March 31, 2016, Fund II had $64.0
million of outstanding SBA debentures. Based on its $37.5 million of regulatory capital as of March 31, 2016, Fund II has the current capacity to issue up to an additional $11.0 million of SBA debentures. Subject to SBA regulatory requirements
and approval, we may access up to $125.0 million of additional SBA debentures under the SBIC Debenture Program. For more information on the SBA debentures, please see Note 6 to our consolidated financial statements.

In June 2014, we entered into the Credit Facility to provide additional funding for our investment and operational activities. The Credit
Facility, which matures on June 16, 2018, had an initial commitment of $30.0 million and an accordion feature that allows for an increase in the total commitments up to $75.0 million, subject to certain customary conditions. The Credit Facility
is secured primarily by our assets, excluding the assets of the Funds.

On December 19, 2014, we amended the Credit Facility to
(i) increase the commitment from $30.0 million to $50.0 million (ii) allow FIC to buy-back up to $10.0 million of our common stock subject to the satisfaction of specified financial covenants and conditions. The Credit Facility continues
to have an accordion feature which allows for an increase in the total commitment up to $75.0 million.

Amounts available to borrow under
the Credit Facility are subject to a minimum borrowing/collateral base that applies an advance rate to certain portfolio investments. We are subject to limitations with respect to the investments securing the Credit Facility, including, but not
limited to, restrictions on sector concentrations, loan size, payment frequency and status and collateral interests, as well as restrictions on portfolio company leverage, which may also affect the borrowing base and therefore amounts available to
borrow.

Borrowings under the Credit Facility bear interest, subject to our election, on a per annum basis equal to (i) the alternate
base rate plus 2.5% or (ii) the applicable LIBOR, which varies depending on the period of the borrowing under the Credit Facility, plus 3.5%. The alternate base rate is equal to the greater of (i) prime rate, (ii) the federal funds
rate plus 0.5% or (iii) the three-month LIBOR plus 1.0%. We pay a commitment fee ranging from 0.5% to 1.0% per annum based on the size of the unused portion of the Credit Facility.

We have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other
customary requirements for similar credit facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the Credit Facility. As of March 31, 2016, we were in compliance with all
covenants of the Credit Facility and there was $11.0 million outstanding under the Credit Facility.

As of March 31, 2016, the
weighted average interest rate for all SBA debentures and borrowings outstanding under the Credit Facility was 4.1%.

As a BDC, we are
generally required to meet a coverage ratio of total assets to total senior securities, which include borrowings and any preferred stock we may issue in the future, of at least 200.0%. This requirement limits the amount that we may borrow. We have
received exemptive relief from the Securities and Exchange Commission, or the SEC, to allow us to exclude any indebtedness guaranteed by the SBA and issued by the Funds from the 200.0% asset coverage requirements, which, in turn, will enable us to
fund more investments with debt capital.



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As a BDC, we are generally not permitted to issue and sell our common stock at a price below net
asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value per share of our common stock if our board of directors, including
Independent Directors, determines that such sale is in the best interests of us and our stockholders, and if our stockholders approve such sale. On June 3, 2015, our stockholders voted to allow us to sell or otherwise issue common stock at a
price below net asset value per share for a period of one year ending on the earlier of June 3, 2016 or the date of our 2016 Annual Meeting of Stockholders. We expect to present to our stockholders a similar proposal at our 2016 Annual Meeting
of Stockholders. Our stockholders specified that the cumulative number of shares sold in each offering during the one-year period ending on the earlier of June 3, 2016 or the date of our 2016 Annual Meeting of Stockholders may not exceed 25.0%
of our outstanding common stock immediately prior to each such sale.

Stock repurchase plan: We have an open market stock
repurchase program (the Program) under which we may acquire up to $5.0 million of our outstanding common stock. Under the Program, we may, but are not obligated to, repurchase outstanding common stock in the open market from time to time
provided that we comply with the prohibitions under our insider trading policies and the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market value and timing constraints. The timing,
manner, price and amount of any share repurchases will be determined by our management, in its discretion, based upon the evaluation of economic and market conditions, stock price, capital availability, applicable legal and regulatory requirements
and other corporate considerations. Unless extended by our board of directors, we expect that the Program will be in effect until January 22, 2017, or until the approved dollar amount has been used to repurchase shares. The Program does not
require us to repurchase any specific number of shares and the Company cannot assure that any shares will be repurchased under the Program. The Program may be suspended, extended, modified or discontinued at any time. We did not make any repurchases
of common stock during the quarters ended March 31, 2016 or 2015.

Critical Accounting Policies and Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make certain estimates and assumptions affecting amounts
reported in the financial statements. We have identified investment valuation and revenue recognition as our most critical accounting estimates. We continuously evaluate our estimates, including those related to the matters described below. These
estimates are based on the information that is currently available to us and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates under different
assumptions or conditions. A discussion of our critical accounting policies follows.

Valuation of Portfolio Investments

As a BDC, we report our assets and liabilities at fair value at all times consistent with GAAP and the 1940 Act. Accordingly, we are required
to periodically determine the fair value of all of our portfolio investments.

Our investments generally consist of illiquid securities
including debt and equity investments in lower middle-market companies. Investments for which market quotations are readily available are valued at such market quotations. Because we expect that there will not be a readily available market for
substantially all of the investments in our portfolio, we value substantially all of our portfolio investments at fair value as determined in good faith by our board of directors using a documented valuation policy and consistently applied valuation
process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a
readily available market value existed for such investments, and the difference could be material.

With respect to investments for which
market quotations are not readily available, our board of directors undertakes a multi-step valuation process each quarter, as described below:



| |  |  | our quarterly valuation process begins with each portfolio company or investment being initially evaluated and rated by the investment professionals of our investment advisor responsible for the portfolio investment;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | preliminary valuation conclusions are then documented and discussed with the investment committee of our investment advisor;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | our board of directors engages one or more independent valuation firm(s) to conduct independent appraisals of a selection of our portfolio investments for which market quotations are not readily available. Each
portfolio company investment is generally appraised by the valuation firm(s) at least once every calendar year and each new portfolio company investment is appraised at least once in the twelve-month period following the initial investment. In
certain instances, we may determine that it is not cost-effective, and as a result it is not in our stockholders best interest, to request the independent appraisal of certain portfolio company investments. Such instances include, but are not
limited to, situations where we determine that the fair value of the portfolio company investment is relatively insignificant to the fair value of the total portfolio. Our board of directors consulted with the independent valuation firm(s) in
arriving at our determination of fair value for 13 and 16 of our portfolio company investments representing 25.9% and 43.0% of the total portfolio investments at fair value (exclusive of new portfolio company investments made during the three months
ended March 31, 2016 and December 31, 2015, respectively) as of March 31, 2016 and December 31, 2015, respectively;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | the audit committee of our board of directors reviews the preliminary valuations of our investment advisor and of the independent valuation firm(s) and responds and supplements the valuation recommendations to reflect
any comments; and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | our board of directors discusses the valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our investment advisor, the independent valuation firm(s) and the
audit committee.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In making the good faith determination of the value of portfolio investments, we start with the cost basis
of the security. The transaction price is typically the best estimate of fair value at inception. When evidence supports a subsequent change to the carrying value from the original transaction price, adjustments are made to reflect the expected exit
values.

Consistent with the policies and methodologies adopted by our board of directors, we perform detailed valuations of our debt and
equity investments, including an analysis on the Companys unfunded loan commitments, using both the market and income approaches as appropriate. Under the market approach, we typically use the enterprise value methodology to determine the fair
value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which we derive a single estimate of enterprise
value. Under the income approach, we typically prepare and analyze discounted cash flow models to estimate the present value of future cash flows of either an individual debt investment or of the underlying portfolio company itself.

We evaluate investments in portfolio companies using the most recent portfolio company financial statements and forecasts. We also consult
with the portfolio companys senior management to obtain further updates on the portfolio companys performance, including information such as industry trends, new product development and other operational issues.

For our debt investments, including senior secured loans and subordinated notes, the primary valuation technique used to estimate the fair
value is the discounted cash flow method. However, if there is deterioration in credit quality or a debt investment is in workout status, we may consider other methods in determining the fair value, including the value attributable to the debt
investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. Our discounted cash flow models estimate a range of fair values by applying an appropriate discount rate to the future
cash flow streams of our debt investments, based on future interest and principal payments as set forth in the associated loan agreements. We prepare a weighted average cost of capital for use in the discounted cash flow model for each investment,
based on factors including, but not limited to: current pricing and credit metrics for similar proposed or executed investment transactions of private companies; the portfolio companys historical financial results and outlook; and the
portfolio companys current leverage and credit quality as compared to leverage and credit quality as of the date the investment was made. We may also consider the following factors when determining the fair value of debt investments: the
portfolio companys ability to make future scheduled payments; prepayment penalties and other fees; estimated remaining life; the nature and realizable value of any collateral securing such debt investment; and changes in the interest rate
environment and the credit markets that generally may affect the price at which similar investments may be made. We estimate the remaining life of our debt investments to generally be the legal maturity date of the instrument, as we generally intend
to hold loans to maturity. However, if we have information available to us that the loan is expected to be repaid in the near term, we would use an estimated remaining life based on the expected repayment date.

For our equity investments, including equity securities and warrants, we generally use a market approach, including valuation methodologies
consistent with industry practice, to estimate the enterprise value of portfolio companies. Typically, the enterprise value of a private company is based on multiples of EBITDA, net income, revenues, or in limited cases, book value. In estimating
the enterprise value of a portfolio company, we analyze various factors consistent with industry practice, including but not limited to original transaction multiples, the portfolio companys historical and projected financial results,
applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of
peer companies that are public. Where applicable, we consider our ability to influence the capital structure of the portfolio company, as well as the timing of a potential exit.

We may also utilize an income approach when estimating the fair value of our equity securities, either as a primary methodology if consistent
with industry practice or if the market approach is otherwise not applicable, or as a supporting methodology to corroborate the fair value ranges determined by the market approach. We typically prepare and analyze discounted cash flow models based
on projections of the future free cash flows (or earnings) of the portfolio company. We consider various factors, including but not limited to the portfolio companys projected financial results, applicable market trading and transaction
comparables, applicable market yields and leverage levels, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public.



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The fair value of our royalty rights are calculated based on projected future cash flows and the
specific provisions contained in the pertinent royalty agreement. The determination of the fair value of such royalty rights is not a significant component of our valuation process.

Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements
express the uncertainties with respect to the possible effect of such valuations, and any changes in such valuations, on the consolidated financial statements.

Revenue Recognition

Investments and related investment income. Realized gains or losses on investments are recorded upon the sale or disposition of a
portfolio investment and are calculated as the difference between the net proceeds from the sale or disposition and the cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in
unrealized appreciation or depreciation on the consolidated statements of operations includes changes in the fair value of investments from the prior period, as determined by our board of directors through the application of our valuation policy, as
well as reclassifications of any prior period unrealized appreciation or depreciation on exited investments to realized gains or losses on investments.

Interest and dividend income. Interest and dividend income are recorded on the accrual basis to the extent that we expect to collect
such amounts. Interest and dividend income is accrued daily based on the outstanding principal amount and the contractual terms of the debt or preferred equity investment. Dividend income is recorded at the point an obligation exists for the
portfolio company to make a distribution. Distributions from portfolio companies are evaluated to determine if the distribution is a distribution of earnings or a return of capital.

Payment-in-kind interest. Certain of our investments contain a PIK income provision. The PIK income, computed at the contractual rate
specified in the applicable investment agreement, is added to the principal balance of the investment, rather than being paid in cash, and recorded as interest or dividend income, as applicable, on the consolidated statements of operations.
Generally, PIK can be paid-in-kind or all in cash. We stop accruing PIK income when there is reasonable doubt that PIK income will be collected. PIK income is included in our taxable income and, therefore, affects the amount we are required to pay
to our stockholders in the form of dividends in order to maintain our tax treatment as a RIC and to avoid paying corporate federal income tax, even though we have not yet collected the cash.

Non-accrual. When there is reasonable doubt that principal, interest or dividends will be collected, loans or preferred equity
investments are placed on non-accrual status and we will generally cease recognizing interest or dividend income. Interest and dividend payments received on non-accrual investments may be recognized as interest or dividend income or applied to the
investment principal balance based on managements judgment. Non-accrual investments are restored to accrual status when past due principal, interest or dividends are paid and, in managements judgment, are likely to remain current.

Warrants. In connection with our debt investments, we will sometimes receive warrants or other equity-related securities, or Warrants.
We determine the cost basis of Warrants based upon their respective fair values on the date of receipt in proportion to the total fair value of the debt and Warrants received. Any resulting difference between the face amount of the debt and its
recorded fair value resulting from the assignment of value to the Warrants are treated as original issue discount, or OID, and accreted into interest income using the effective interest method over the term of the debt investment.

Fee income. All transaction fees earned in connection with our investments are recognized as fee income. Such fees typically include
fees for services, including structuring and advisory services, provided to portfolio companies. We recognize income from fees for providing such structuring and advisory services when the services are rendered or the transactions are completed.
Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as fee income when earned. Prior to the Formation Transactions, and in accordance with the prior limited partnership agreement, we historically recorded
transaction fees provided in connection with our investments as a direct offset to management fee expense.

We also typically receive loan
origination or closing fees in connection with investments. Such loan origination and closing fees are capitalized as unearned income and offset against investment cost basis on our consolidated statements of assets and liabilities and accreted into
income over the life of the investment.

Recently Issued Accounting Standards

In February 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-02,
Consolidation: Amendments to the Consolidation Analysis, which amends the criteria for determining which entities are considered variable interest entities (VIEs), amends the criteria for determining if a service provider
possesses a variable interest in a VIE and ends the deferral granted to investment companies for application of the VIE consolidation model. The Company adopted ASU 2015-02 as of January 1, 2016. The adoption of ASU 2015-02 had no material
impact on the Companys consolidated financial statements.



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In April 2015, the FASB issued ASU 2015-03, Interest  Imputation of interest (Subtopic
835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability
rather than as an asset. Amortization of the costs will continue to be reported as interest expense. The Company adopted ASU 2015-03 as of January 1, 2016. The adoption of ASU 2015-03 had no material impact on the Companys consolidated
financial statements other than corresponding reductions to total assets and total liabilities on the consolidated statements of assets and liabilities. Prior to adoption, the Company recorded deferred financing costs as an asset on the consolidated
statements of assets and liabilities. Upon adoption of ASU 2015-03, the Company reclassified these deferred costs to a direct offset of the related debt liability on the consolidated statements of assets and liabilities. The new guidance will be
applied retrospectively to each prior period presented. The Company reclassified the $4,872 of deferred financing costs presented as an asset as of December 31, 2015 to a direct offset of the related debt liabilities as of such date.

In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue
recognition requirements in Revenue Recognition (Topic 605). Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. This guidance is effective for annual and interim reporting periods beginning after December 15, 2017 and early application is permitted only for annual reporting
periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact this ASU will have on our consolidated financial position or disclosures.

Off-Balance Sheet Arrangements

We may be
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. We had off-balance sheet arrangements consisting of outstanding commitments to fund various undrawn
revolving loans and other credit facilities totaling $7.5 million and $10.2 million as of March 31, 2016 and December 31, 2015, respectively. Such outstanding commitments are summarized in the following table:



|                                                        |  |                        |        |  |                    |   |       |                 |  |   |                    |  |  |   |        | 
|------------------------------------------------------- |  | ---------------------- | ------ |  | ------------------ | - | ----- | --------------- |  | - | ------------------ |  |  | - | ------ | 
|                                                        |  | March 31, 2016         |        |  | December 31, 2015  |  
|Portfolio Company - Investment                          |  | TotalCommitment        |        |  | UnfundedCommitment |   |       | TotalCommitment |  |   | UnfundedCommitment | 
|                                                        |  | (dollars in thousands) |       
|FAR Research Inc.  Revolving Loan                      |  | $                      | 1,750  |  |                    | $ | 1,614 |                 |  | $ | 1,750              |  |  | $ | 1,614  | 
|Inflexxion, Inc.  Revolving Loan                       |  |                        | 1,000  |  |                    |   | 850   |                 |  |   | 1,000              |  |  |   | 850    | 
|inthinc Technology Solutions, Inc.  Subordinated Note  |  |                        | 5,000  |  |                    |   | 1,000 |                 |  |   | 5,000              |  |  |   | 1,000  | 
|Lightning Diversion Systems, LLC  Revolving Loan       |  |                        | 1,000  |  |                    |   | 1,000 |                 |  |   | 1,000              |  |  |   | 1,000  | 
|Microbiology Research Associates, Inc.  Revolving Loan |  |                        | 500    |  |                    |   | 500   |                 |  |   | 500                |  |  |   | 500    | 
|Oaktree Medical Centre, P.C.  Revolving Loan           |  |                        | 1,250  |  |                    |   |      |                 |  |   | 500                |  |  |   | 250    | 
|Restaurant Finance Co, LLC  Senior Secured Loan        |  |                        |       |  |                    |   |      |                 |  |   | 10,500             |  |  |   | 1,936  | 
|Vanguard Dealer Services, L.L.C.  Subordinated Note    |  |                        | 9,850  |  |                    |   | 2,500 |                 |  |   | 9,850              |  |  |   | 2,500  | 
|X5 Opco LLC  Revolving Loan                            |  |                        |       |  |                    |   |      |                 |  |   | 500                |  |  |   | 500    | 
|                                                        |  |                        |        |  |                    |   |       |                 |  |   |                    |  |  |   |        | 
|Total                                                   |  | $                      | 20,350 |  |                    | $ | 7,464 |                 |  | $ | 30,600             |  |  | $ | 10,150 | 
|                                                        |  |                        |        |  |                    |   |       |                 |  |   |                    |  |  |   |        | 

Additional detail for each of the commitments above is provided in the Companys consolidated schedules
of investments.

Related Party Transactions

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



| |  |  | In connection with the Formation Transactions, Fund I terminated its management services agreement with Fidus Capital, LLC and we entered into the Investment Advisory Agreement with Fidus Investment Advisors, LLC, as
our investment advisor. The investment professionals of Fidus Investment Advisors, LLC were also the investment professionals of Fidus Capital, LLC. We entered into the Investment Advisory Agreement with Fidus Investment Advisors, LLC to manage our
day-to-day operating and investing activities. We pay our investment advisor a fee for its services under the Investment Advisory Agreement consisting of two components  a base management fee and an incentive fee. See Note 5 to our
consolidated financial statements.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Edward H. Ross, our Chairman and Chief Executive Officer and Thomas C. Lauer, one of our
directors, are managers of Fidus Investment Advisors, LLC. In May 2015, Fidus Investment Advisors, LLC entered into a combination with Fidus Partners, LLC (the Combination), by which members of Fidus Investment Advisors LLC and Fidus
Partners, LLC (Partners) contributed all of their respective membership interest in Fidus Investment Advisors LLC and Partners to a newly formed limited liability company, Fidus Group Holdings, LLC (Holdings). As a result,
Fidus Investment Advisors LLC is a wholly-owned subsidiary of Holdings, which is a newly formed limited liability company organized under the laws of Delaware.



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| |  |  | We entered into the Administration Agreement with Fidus Investment Advisors, LLC to provide us with the office facilities and administrative services necessary to conduct day-to-day operations. See Note 5 to our
consolidated financial statements.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | We entered into a license agreement with Fidus Partners, LLC, pursuant to which Fidus Partners, LLC has granted us a non-exclusive, royalty-free license to use the name Fidus.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In connection with the IPO and our election to be regulated as a BDC, we applied for and received exemptive relief from the SEC on
March 27, 2012 to allow us to take certain actions that would otherwise be prohibited by the 1940 Act, as applicable to BDCs. The relief permits FIC and Fund I, each of which has elected to be treated as a BDC, to operate effectively as one
company, specifically allowing them to: (1) engage in certain transactions with each other; (2) invest in securities in which the other is or proposes to be an investor; (3) file consolidated reports with the Commission; and
(4) be subject to modified consolidated asset coverage requirements for senior securities issued by a BDC and its SBIC subsidiary. Fund II has not elected to be treated as a BDC and is not party to this exemptive relief. The fourth exemption
described above allows us to exclude any indebtedness guaranteed by the SBA and issued by Fund I from the 200.0% asset coverage requirements applicable to us. Effective September 30, 2014, any SBA debentures issued by Fund II are not considered
senior securities for purposes of the 200.0% asset coverage requirements.

In addition, we, Fund I and our investment advisor have each
adopted a joint code of ethics pursuant to Rule 17j-1 under the 1940 Act that governs the conduct of our and our investment advisors officers, directors and employees. Additionally, our investment advisor has adopted a code of ethics pursuant
to rule 240A-1 under the 1940 Act and in accordance with Rule 17j-1(c). We, and Fund I, have also adopted a code of business conduct that is applicable to all officers, directors and employees of Fidus and our investment advisor. Our officers and
directors also remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law.

Recent Developments

On May 2, 2016, the board of directors declared a regular quarterly dividend of $0.39 per share, which is payable on June 24, 2016 to
stockholders of record as of June 10, 2016.



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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are subject to financial market risks, including changes in interest rates. Changes in interest rates affect both our cost of funding and
the valuation of our investment portfolio. Our risk management systems and procedures are designed to identify and analyze our risk, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable
administrative and information systems and other policies and programs. In the future, our investment income may also be affected by changes in various interest rates, including LIBOR and prime rates, to the extent of any debt investments that
include floating interest rates. As of March 31, 2016 and December 31, 2015, one debt investment bore interest at a variable rate, which represented $8.5 million and $8.9 million of our portfolio on a fair value basis, respectively, and
the remainder of our debt portfolio was comprised entirely of fixed rate investments. Assuming that the consolidated statements of assets and liabilities as of March 31, 2016 and December 31, 2015 were to remain constant, a hypothetical
100 basis point change in interest rates would not have a material effect on our level of interest income from debt investments. Our pooled SBA debentures bear interest at fixed rates. Our Credit Facility bears interest, subject to our election, on
a per annum basis equal to (i) the alternate base rate plus 2.5% or (ii) the applicable LIBOR, which varies depending on the period of the borrowing under the Credit Facility, plus 3.5%. The alternate base rate is equal to the greater of
(i) prime rate, (ii) the federal funds rate plus 0.5% or (iii) the three-month LIBOR plus 1.0%.

Because we currently
borrow, and plan to borrow in the future, money to make investments, our net investment income is dependent upon the difference between the rate at which we borrow funds and the rate at which we invest the funds borrowed. Accordingly, there can be
no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In periods of rising interest rates, our cost of funds would increase, which could reduce our net investment income
if there is not a corresponding increase in interest income generated by our investment portfolio.

Item 4. Controls and
Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we
file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms and that such information is accumulated and communicated to our management, including our
Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and
operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act) as of the end of the period covered by this report. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer
and Chief Financial Officer concluded that our disclosure controls and procedures were effective. It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the
objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there can be no
assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the first quarter of 2016 that have materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting.



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PART II  OTHER INFORMATION

Item 1. Legal Proceedings.

Although we may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise, we
are currently not a party to any pending material legal proceedings.

Item 1A. Risk Factors.

In addition to other information set forth in this report, you should carefully consider the Risk Factors discussed in our Form
10-K for the year ended December 31, 2015 and filed with the SEC on March 3, 2016, which are incorporated herein by reference. These Risk Factors could materially affect our business, financial condition and/or operating results.
Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.

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

We have an open market stock repurchase program (the Program) under which we may acquire up to $5.0 million of our outstanding
common stock. Under the Program, we may, but are not obligated to, repurchase outstanding common stock in the open market from time to time provided that we comply with the prohibitions under our insider trading policies and the requirements of Rule
10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market value and timing constraints. The timing, manner, price and amount of any share repurchases will be determined by our management, in its discretion, based
upon the evaluation of economic and market conditions, stock price, capital availability, applicable legal and regulatory requirements and other corporate considerations. Unless extended by our board of directors, we expect that the Program will be
in effect until January 22, 2017, or until the approved dollar amount has been used to repurchase shares. The Program does not require us to repurchase any specific number of shares and the Company cannot assure that any shares will be
repurchased under the Program. The Program may be suspended, extended, modified or discontinued at any time. We did not make any repurchases of common stock during the quarters ended March 31, 2016 or 2015.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety
Disclosures.

None.

Item 5. Other Information.

None.



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Item 6. Exhibits.



|       |  |                                                                                                                                                                            
|------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |  | Exhibit                                                                                                                                                                    
|31.1   |  | Chief Executive Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|       | 
|31.2   |  | Chief Financial Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|       | 
|32.1   |  | Certification pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                  



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SIGNATURES

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



|                  |  |  |  |  |  |                                                                     
|----------------- |  |  |  |  |  | --------------------------------------------------------------------
|                  |  |  |  |  |  | FIDUS INVESTMENT CORPORATION                                        
|                  |  |  | 
|Date: May 5, 2016 |  |  |  |  |  | /s/ EDWARD H. ROSS                                                  
|                  |  |  |  |  |  | Edward H. Ross                                                      
|                  |  |  |  |  |  | Chairman and Chief Executive Officer                                
|                  |  |  |  |  |  | (Principal Executive Officer)                                       
|                  |  |  | 
|Date: May 5, 2016 |  |  |  |  |  | /s/ SHELBY E. SHERARD                                               
|                  |  |  |  |  |  | Shelby E. Sherard                                                   
|                  |  |  |  |  |  | Chief Financial Officer (Principal Financial
and Accounting Officer)



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EXHIBIT INDEX



|       |  |                                                                                                                                                                            
|------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |  | Exhibit                                                                                                                                                                    
|31.1   |  | Chief Executive Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|       | 
|31.2   |  | Chief Financial Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|       | 
|32.1   |  | Certification pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                  



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