##### Table of Contents





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q







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

For the quarterly period ended March 31, 2017

OR



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

For the transition period
 to

Commission File No. 000-54899





TCG BDC, INC.

(Exact
name of Registrant as specified in its charter)







|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|Maryland                                                       |  | 80-0789789                             
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer
Identification Number)

520 Madison Avenue, 38th Floor, New York, NY 10022

(Address of principal executive office) (Zip Code)

(212) 813-4900

(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  ☒    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 (§232.405 of this chapter) 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 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         |  | ☐
|                        |  |                                                  | 
|Non-accelerated filer   |  | ☒  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | ☐
|                        |  |                                                  | 
|Emerging Growth Company |  | ☒                                                |  |                           |  |  

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

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

Indicate the number of shares
outstanding of each of the issuers classes of common stock, as of the latest practicable date.



|                              |  |                             |            | 
|----------------------------- |  | --------------------------- | ---------- | 
|Class                         |  | Outstanding at May 10, 2017 |           
|Common stock, $0.01 par value |  |                             | 41,713,287 | 









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TCG BDC, INC.

INDEX



|         |  |                                                                                                                                              |  |  |    | 
|-------- |  | -------------------------------------------------------------------------------------------------------------------------------------------- |  |  | -- | 
|Part I.  |  | Financial Information                                                                                                                        |  |  |    | 
|         |  |                                                                                                                                             
|Item 1.  |  | Financial Statements                                                                                                                         |  |  |    | 
|         |  |                                                                                                                                             
|         |  | Consolidated Statements of Assets and Liabilities as of March 31, 2017 (unaudited) and December 31, 2016                                     |  |  | 3  | 
|         |  |                                                                                                                                             
|         |  | Consolidated Statements of Operations for the three month periods ended March 31, 2017 (unaudited) and March 31, 2016 (unaudited)            |  |  | 4  | 
|         |  |                                                                                                                                             
|         |  | Consolidated Statements of Changes in Net Assets for the three month periods ended March 31, 2017 (unaudited) and March 31, 2016 (unaudited) |  |  | 5  | 
|         |  |                                                                                                                                             
|         |  | Consolidated Statements of Cash Flows for the three month periods ended March 31, 2017 (unaudited) and March 31, 2016 (unaudited)            |  |  | 6  | 
|         |  |                                                                                                                                             
|         |  | Consolidated Schedules of Investments as of March 31, 2017 (unaudited) and December 31, 2016                                                 |  |  | 7  | 
|         |  |                                                                                                                                             
|         |  | Notes to Consolidated Financial Statements (unaudited)                                                                                       |  |  | 21 | 
|         |  |                                                                                                                                             
|Item 2.  |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                                        |  |  | 57 | 
|         |  |                                                                                                                                             
|Item 3.  |  | Quantitative and Qualitative Disclosures About Market Risk                                                                                   |  |  | 86 | 
|         |  |                                                                                                                                             
|Item 4.  |  | Controls and Procedures                                                                                                                      |  |  | 87 | 
|         |  |                                                                                                                                             
|Part II. |  | Other Information                                                                                                                            |  |  |    | 
|         |  |                                                                                                                                             
|Item 1.  |  | Legal Proceedings                                                                                                                            |  |  | 89 | 
|         |  |                                                                                                                                             
|Item 1A. |  | Risk Factors                                                                                                                                 |  |  | 89 | 
|         |  |                                                                                                                                             
|Item 2.  |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                  |  |  | 89 | 
|         |  |                                                                                                                                             
|Item 3.  |  | Defaults Upon Senior Securities                                                                                                              |  |  | 89 | 
|         |  |                                                                                                                                             
|Item 4.  |  | Mine Safety Disclosures                                                                                                                      |  |  | 89 | 
|         |  |                                                                                                                                             
|Item 5.  |  | Other Information                                                                                                                            |  |  | 89 | 
|         |  |                                                                                                                                             
|Item 6.  |  | Exhibits                                                                                                                                     |  |  | 89 | 
|         |  |                                                                                                                                             
|         |  | Signatures                                                                                                                                   |  |  | 90 | 



2



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TCG BDC, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(dollar amounts in thousands, except per share data)



|                                                                                                                                                                                   |  |               |           |   |                  |   |           |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | --------- | - | ---------------- | - | --------- | -
|                                                                                                                                                                                   |  | March 31,2017 |           |   | December 31,2016 |  
|                                                                                                                                                                                   |  | (unaudited)   |           |   |                  |  
|ASSETS                                                                                                                                                                             |  |               |           |   |                  |   |           |  
|Investments, at fair value                                                                                                                                                         |  |               |           |   |                  |   |           |  
|Investmentsnon-controlled/non-affiliated, at fair value (amortized cost of $1,263,462 and $1,332,596, respectively)                                                               |  | $             | 1,258,424 |   |                  | $ | 1,323,102 |  
|Investmentscontrolled/affiliated, at fair value (amortized cost of $131,545 and $97,385,
respectively)                                                                            |  |               | 134,121   |   |                  |   | 99,657    |  
|                                                                                                                                                                                   |  |               |           |   |                  |   |           |  
|Total investments, at fair value (amortized cost of $1,395,007 and $1,429,981,
respectively)                                                                                       |  |               | 1,392,545 |   |                  |   | 1,422,759 |  
|Cash and cash equivalents                                                                                                                                                          |  |               | 44,874    |   |                  |   | 38,489    |  
|Receivable for investment sold                                                                                                                                                     |  |               | 11,874    |   |                  |   | 19,750    |  
|Deferred financing costs                                                                                                                                                           |  |               | 3,221     |   |                  |   | 3,308     |  
|Interest receivable from
non-controlled/non-affiliated investments                                                                                                                 |  |               | 3,272     |   |                  |   | 3,407     |  
|Interest and dividend receivable from controlled/affiliated investments                                                                                                            |  |               | 3,048     |   |                  |   | 2,400     |  
|Prepaid expenses and other assets                                                                                                                                                  |  |               | 159       |   |                  |   | 42        |  
|                                                                                                                                                                                   |  |               |           |   |                  |   |           |  
|Total assets                                                                                                                                                                       |  | $             | 1,458,993 |   |                  | $ | 1,490,155 |  
|                                                                                                                                                                                   |  |               |           |   |                  |   |           |  
|LIABILITIES                                                                                                                                                                        |  |               |           |   |                  |   |           |  
|Secured borrowings (Note 6)                                                                                                                                                        |  | $             | 390,608   |   |                  | $ | 421,885   |  
|2015-1 Notes payable, net of unamortized debt issuance
costs of $2,100 and $2,151, respectively (Note 7)                                                                           |  |               | 270,900   |   |                  |   | 270,849   |  
|Due to Investment Adviser                                                                                                                                                          |  |               | 86        |   |                  |   | 215       |  
|Interest and credit facility fees payable (Notes 6 and 7)                                                                                                                          |  |               | 3,703     |   |                  |   | 3,599     |  
|Dividend payable (Note 9)                                                                                                                                                          |  |               | 17,100    |   |                  |   | 20,018    |  
|Base management and incentive fees payable (Note 4)                                                                                                                                |  |               | 11,764    |   |                  |   | 8,157     |  
|Administrative service fees payable (Note 4)                                                                                                                                       |  |               | 115       |   |                  |   | 137       |  
|Other accrued expenses and liabilities                                                                                                                                             |  |               | 1,399     |   |                  |   | 1,158     |  
|                                                                                                                                                                                   |  |               |           |   |                  |   |           |  
|Total liabilities                                                                                                                                                                  |  |               | 695,675   |   |                  |   | 726,018   |  
|                                                                                                                                                                                   |  |               |           |   |                  |   |           |  
|Commitments and contingencies (Notes 8 and 11)                                                                                                                                     |  |               |           |   |                  |   |           |  
|NET ASSETS                                                                                                                                                                         |  |               |           |   |                  |   |           |  
|Common stock, $0.01 par value; 200,000,000 shares authorized; 41,708,155 shares and 41,702,318
shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively |  |               | 417       |   |                  |   | 417       |  
|Paid-in capital in excess of par value                                                                                                                                             |  |               | 799,688   |   |                  |   | 799,580   |  
|Offering costs                                                                                                                                                                     |  |               | (74       | ) |                  |   | (74       | )
|Accumulated net investment income (loss), net of cumulative dividends of $146,165 and $129,065 at
March 31, 2017 and December 31, 2016, respectively                               |  |               | (1,200    | ) |                  |   | (3,207    | )
|Accumulated net realized gain (loss)                                                                                                                                               |  |               | (33,051   | ) |                  |   | (25,357   | )
|Accumulated net unrealized appreciation (depreciation)                                                                                                                             |  |               | (2,462    | ) |                  |   | (7,222    | )
|                                                                                                                                                                                   |  |               |           |   |                  |   |           |  
|Total net assets                                                                                                                                                                   |  | $             | 763,318   |   |                  | $ | 764,137   |  
|                                                                                                                                                                                   |  |               |           |   |                  |   |           |  
|NET ASSETS PER SHARE                                                                                                                                                               |  | $             | 18.30     |   |                  | $ | 18.32     |  
|                                                                                                                                                                                   |  |               |           |   |                  |   |           |  

The accompanying notes are an integral part of these consolidated financial statements.



3



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TCG BDC, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollar amounts
in thousands, except per share data)

(unaudited)



|                                                                                                  |  |                                  |            |   |               |   |            |  
|------------------------------------------------------------------------------------------------- |  | -------------------------------- | ---------- | - | ------------- | - | ---------- | -
|                                                                                                  |  | For the three month periodsended |           
|                                                                                                  |  | March 31,2017                    |            |   | March 31,2016 |  
|Investment income:                                                                                |  |                                  |            |   |               |   |            |  
|Interest income from
non-controlled/non-affiliated investments                                    |  | $                                | 28,354     |   |               | $ | 22,111     |  
|Other income from
non-controlled/non-affiliated investments                                       |  |                                  | 2,536      |   |               |   | 999        |  
|Interest income from controlled/affiliated investments                                            |  |                                  | 1,949      |   |               |   |           |  
|Dividend income from controlled/affiliated investments                                            |  |                                  | 1,260      |   |               |   |           |  
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Total investment income                                                                           |  |                                  | 34,099     |   |               |   | 23,110     |  
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Expenses:                                                                                         |  |                                  |            |   |               |   |            |  
|Base management fees (Note 4)                                                                     |  |                                  | 5,125      |   |               |   | 4,140      |  
|Incentive fees (Note 4)                                                                           |  |                                  | 4,777      |   |               |   | 2,990      |  
|Professional fees                                                                                 |  |                                  | 443        |   |               |   | 431        |  
|Administrative service fees (Note 4)                                                              |  |                                  | 173        |   |               |   | 148        |  
|Interest expense (Notes 6 and 7)                                                                  |  |                                  | 5,034      |   |               |   | 3,599      |  
|Credit facility fees (Note 6)                                                                     |  |                                  | 503        |   |               |   | 599        |  
|Directors fees and expenses                                                                      |  |                                  | 103        |   |               |   | 120        |  
|Other general and administrative                                                                  |  |                                  | 542        |   |               |   | 503        |  
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Total expenses                                                                                    |  |                                  | 16,700     |   |               |   | 12,530     |  
|Waiver of base management fees (Note 4)                                                           |  |                                  | 1,708      |   |               |   | 1,380      |  
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Net expenses                                                                                      |  |                                  | 14,992     |   |               |   | 11,150     |  
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Net investment income (loss)                                                                      |  |                                  | 19,107     |   |               |   | 11,960     |  
|Net realized gain (loss) and net change in unrealized appreciation (depreciation) on
investments: |  |                                  |            |   |               |   |            |  
|Net realized gain (loss) on
investmentsnon-controlled/non-affiliated                             |  |                                  | (7,694     | ) |               |   | (3,577     | )
|Net change in unrealized appreciation (depreciation) on investmentsnon-controlled/non-affiliated |  |                                  | 4,456      |   |               |   | (11,091    | )
|Net change in unrealized appreciation (depreciation) on
investmentscontrolled/affiliated         |  |                                  | 304        |   |               |   |           |  
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Net realized gain (loss) and net change in unrealized appreciation (depreciation)
on investments  |  |                                  | (2,934     | ) |               |   | (14,668    | )
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Net increase (decrease) in net assets resulting from operations                                   |  | $                                | 16,173     |   |               | $ | (2,708     | )
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Basic and diluted earnings per common share (Note 9)                                              |  | $                                | 0.39       |   |               | $ | (0.08      | )
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Weighted-average shares of common stock outstandingBasic and Diluted (Note 9)                    |  |                                  | 41,706,598 |   |               |   | 31,945,959 |  
|                                                                                                  |  |                                  |            |   |               |   |            |  
|Dividends declared per common share (Note 9)                                                      |  | $                                | 0.41       |   |               | $ | 0.40       |  

The accompanying notes are an integral part of these consolidated financial statements.



4



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TCG BDC, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(dollar amounts in thousands)

(unaudited)



|                                                                                |  |                                   |         |   |                |   |         |  
|------------------------------------------------------------------------------- |  | --------------------------------- | ------- | - | -------------- | - | ------- | -
|                                                                                |  | For the three month periods ended |        
|                                                                                |  | March 31, 2017                    |         |   | March 31, 2016 |  
|Increase (decrease) in net assets resulting from operations:                    |  |                                   |         |   |                |   |         |  
|Net investment income (loss)                                                    |  | $                                 | 19,107  |   |                | $ | 11,960  |  
|Net realized gain (loss) on investments                                         |  |                                   | (7,694  | ) |                |   | (3,577  | )
|Net change in unrealized appreciation (depreciation) on investments             |  |                                   | 4,760   |   |                |   | (11,091 | )
|                                                                                |  |                                   |         |   |                |   |         |  
|Net increase (decrease) in net assets resulting from operations                 |  |                                   | 16,173  |   |                |   | (2,708  | )
|                                                                                |  |                                   |         |   |                |   |         |  
|Capital transactions:                                                           |  |                                   |         |   |                |   |         |  
|Common stock issued                                                             |  |                                   |        |   |                |   | 33,000  |  
|Reinvestment of dividends                                                       |  |                                   | 108     |   |                |   | 74      |  
|Dividends declared (Note 12)                                                    |  |                                   | (17,100 | ) |                |   | (13,337 | )
|                                                                                |  |                                   |         |   |                |   |         |  
|Net increase (decrease) in net assets resulting from capital share transactions |  |                                   | (16,992 | ) |                |   | 19,737  |  
|                                                                                |  |                                   |         |   |                |   |         |  
|Net increase (decrease) in net assets                                           |  |                                   | (819    | ) |                |   | 17,029  |  
|                                                                                |  |                                   |         |   |                |   |         |  
|Net assets at beginning of period                                               |  |                                   | 764,137 |   |                |   | 571,726 |  
|                                                                                |  |                                   |         |   |                |   |         |  
|Net assets at end of period                                                     |  | $                                 | 763,318 |   |                | $ | 588,755 |  
|                                                                                |  |                                   |         |   |                |   |         |  

The accompanying notes are an integral part of these consolidated financial statements.



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TCG BDC, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollar amounts
in thousands)

(unaudited)



|                                                                                                                                                 |  |                                   |          |   |                |   |          |  
|------------------------------------------------------------------------------------------------------------------------------------------------ |  | --------------------------------- | -------- | - | -------------- | - | -------- | -
|                                                                                                                                                 |  | For the three month periods ended |         
|                                                                                                                                                 |  | March 31, 2017                    |          |   | March 31, 2016 |  
|Cash flows from operating activities:                                                                                                            |  |                                   |          |   |                |   |          |  
|Net increase (decrease) in net assets resulting from operations                                                                                  |  | $                                 | 16,173   |   |                | $ | (2,708   | )
|Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net
cash provided by (used in) operating activities: |  |                                   |          |   |                |   |          |  
|Amortization of deferred financing costs                                                                                                         |  |                                   | 231      |   |                |   | 264      |  
|Net accretion of discount on investments                                                                                                         |  |                                   | (3,576   | ) |                |   | (611     | )
|Net realized (gain) loss on investments                                                                                                          |  |                                   | 7,694    |   |                |   | 3,577    |  
|Net change in unrealized (appreciation) depreciation on investments                                                                              |  |                                   | (4,760   | ) |                |   | 11,091   |  
|Cost of investments purchased and change in payable for investments purchased                                                                    |  |                                   | (152,235 | ) |                |   | (114,034 | )
|Proceeds from sales and repayments of investments and change in receivable for investments
sold                                                  |  |                                   | 190,967  |   |                |   | 28,146   |  
|Changes in operating assets:                                                                                                                     |  |                                   |          |   |                |   |          |  
|Interest receivable                                                                                                                              |  |                                   | (578     | ) |                |   | 81       |  
|Dividend receivable                                                                                                                              |  |                                   | 65       |   |                |   |         |  
|Prepaid expenses and other assets                                                                                                                |  |                                   | (117     | ) |                |   | 370      |  
|Changes in operating liabilities:                                                                                                                |  |                                   |          |   |                |   |          |  
|Due to Investment Adviser                                                                                                                        |  |                                   | (129     | ) |                |   | (121     | )
|Interest and credit facility fees payable                                                                                                        |  |                                   | 104      |   |                |   | 438      |  
|Base management and incentive fees payable                                                                                                       |  |                                   | 3,607    |   |                |   | 3,163    |  
|Administrative service fees payable                                                                                                              |  |                                   | (22      | ) |                |   | 50       |  
|Other accrued expenses and liabilities                                                                                                           |  |                                   | 241      |   |                |   | 238      |  
|                                                                                                                                                 |  |                                   |          |   |                |   |          |  
|Net cash provided by (used in) operating activities                                                                                              |  |                                   | 57,665   |   |                |   | (70,056  | )
|                                                                                                                                                 |  |                                   |          |   |                |   |          |  
|Cash flows from financing activities:                                                                                                            |  |                                   |          |   |                |   |          |  
|Proceeds from issuance of common stock                                                                                                           |  |                                   |         |   |                |   | 33,000   |  
|Borrowings on SPV Credit Facility and Credit Facility                                                                                            |  |                                   | 93,000   |   |                |   | 111,000  |  
|Repayments of SPV Credit Facility and Credit Facility                                                                                            |  |                                   | (124,277 | ) |                |   | (66,000  | )
|Debt issuance costs paid                                                                                                                         |  |                                   | (93      | ) |                |   |         |  
|Dividends paid in cash                                                                                                                           |  |                                   | (19,910  | ) |                |   | (18,210  | )
|                                                                                                                                                 |  |                                   |          |   |                |   |          |  
|Net cash provided by (used in) financing activities                                                                                              |  |                                   | (51,280  | ) |                |   | 59,790   |  
|                                                                                                                                                 |  |                                   |          |   |                |   |          |  
|Net increase (decrease) in cash and cash equivalents                                                                                             |  |                                   | 6,385    |   |                |   | (10,266  | )
|Cash and cash equivalents, beginning of period                                                                                                   |  |                                   | 38,489   |   |                |   | 41,837   |  
|                                                                                                                                                 |  |                                   |          |   |                |   |          |  
|Cash and cash equivalents, end of period                                                                                                         |  | $                                 | 44,874   |   |                | $ | 31,571   |  
|                                                                                                                                                 |  |                                   |          |   |                |   |          |  
|Supplemental disclosures:                                                                                                                        |  |                                   |          |   |                |   |          |  
|Interest paid during the period                                                                                                                  |  | $                                 | 4,952    |   |                | $ | 3,227    |  
|Dividends declared during the period                                                                                                             |  | $                                 | 17,100   |   |                | $ | 13,337   |  
|Reinvestment of dividends                                                                                                                        |  | $                                 | 108      |   |                | $ | 74       |  

The accompanying notes are an integral part of these consolidated financial statements.



6



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of
March 31, 2017

(dollar amounts in thousands)

(unaudited)



|                                                                              |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |   |  |                        |        |   |  |  |      |  
|----------------------------------------------------------------------------- |  | ----------------------------------------- |  | ----------------------- |  | ------------ | ---------- |  | ------------------- | - | ------ | ---------------- |  | - | ------------ | - |  | ---------------------- | ------ | - |  |  | ---- | -
|Investmentsnon-controlled/non-affiliated (1)                                 |  | Industry                                  |  | InterestRate(2)         |  | MaturityDate |            |  | Par/PrincipalAmount |   |        | AmortizedCost(6) |  |   | FairValue(7) |   |  | Percentageof NetAssets |       
|First Lien Debt (77.95%)                                                      |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |   |  |                        |        |   |  |  |      |  
|Access CIG, LLC (2) (3) (4) (13)                                              |  | Business Services                         |  | L + 5.00% (1.00% Floor) |  |              | 10/17/2021 |  |                     | $ | 18,289 |                  |  | $ | 18,180       |   |  | $                      | 18,313 |   |  |  | 2.40 | %
|Advanced Instruments,LLC(2) (3) (4) (13)
(15)                                 |  | Healthcare & Pharmaceuticals              |  | L + 5.25% (1.00% Floor) |  |              | 10/31/2022 |  |                     |   | 10,500 |                  |  |   | 10,287       |   |  |                        | 10,476 |   |  |  | 1.37 |  
|Alpha Packaging Holdings,Inc.(2) (3) (4)
(13)                                 |  | Containers, Packaging & Glass             |  | L + 4.25% (1.00% Floor) |  |              | 5/12/2020  |  |                     |   | 11,293 |                  |  |   | 11,285       |   |  |                        | 11,293 |   |  |  | 1.48 |  
|Anaren, Inc.(2) (3) (4) (13)                                                  |  | Telecommunications                        |  | L + 4.50% (1.00% Floor) |  |              | 2/18/2021  |  |                     |   | 3,849  |                  |  |   | 3,826        |   |  |                        | 3,849  |   |  |  | 0.50 |  
|Audax AAMP Holdings,Inc.(2) (3)
(4) (13)                                      |  | Durable Consumer Goods                    |  | L + 6.50% (1.00% Floor) |  |              | 6/24/2017  |  |                     |   | 10,274 |                  |  |   | 10,260       |   |  |                        | 9,789  |   |  |  | 1.28 |  
|BAART Programs,Inc.(2) (4)
(13) (16)                                          |  | Healthcare & Pharmaceuticals              |  | L + 7.75% (0.00% Floor) |  |              | 10/9/2021  |  |                     |   | 7,388  |                  |  |   | 7,339        |   |  |                        | 7,535  |   |  |  | 0.99 |  
|Brooks Equipment Company,LLC(2) (3) (4)
(13)                                  |  | Construction & Building                   |  | L + 5.00% (1.00% Floor) |  |              | 8/29/2020  |  |                     |   | 6,694  |                  |  |   | 6,659        |   |  |                        | 6,682  |   |  |  | 0.89 |  
|Capstone Logistics Acquisition,Inc.(2) (3)
(4) (13)                           |  | Transportation: Cargo                     |  | L + 4.50% (1.00% Floor) |  |              | 10/7/2021  |  |                     |   | 19,478 |                  |  |   | 19,343       |   |  |                        | 19,445 |   |  |  | 2.55 |  
|Captive Resources Midco,LLC(2) (3) (4)
(13) (15) (16)                         |  | Banking, Finance, Insurance & Real Estate |  | L + 5.75% (1.00% Floor) |  |              | 6/30/2020  |  |                     |   | 28,975 |                  |  |   | 28,630       |   |  |                        | 28,975 |   |  |  | 3.80 |  
|Central Security Group,Inc.(2) (3) (4)
(13) (16)                              |  | Consumer Services                         |  | L + 5.63% (1.00% Floor) |  |              | 10/6/2020  |  |                     |   | 28,584 |                  |  |   | 28,247       |   |  |                        | 28,499 |   |  |  | 3.73 |  
|CIP Revolution Holdings,LLC(2) (3) (5)
(15)                                   |  | Media: Advertising, Printing & Publishing |  | L + 6.00% (1.00% Floor) |  |              | 8/19/2021  |  |                     |   | 16,500 |                  |  |   | 16,332       |   |  |                        | 16,783 |   |  |  | 2.20 |  
|Colony HardwareCorporation(2) (3)
(4) (13)                                    |  | Construction & Building                   |  | L + 6.00% (1.00% Floor) |  |              | 10/23/2021 |  |                     |   | 16,995 |                  |  |   | 16,773       |   |  |                        | 16,995 |   |  |  | 2.23 |  
|Datapipe, Inc.(2) (3) (13) (16)                                               |  | Telecommunications                        |  | L + 4.75% (1.00% Floor) |  |              | 3/15/2019  |  |                     |   | 9,725  |                  |  |   | 9,650        |   |  |                        | 9,753  |   |  |  | 1.28 |  
|Dent Wizard InternationalCorporation(2) (3) (4)
(13) (16)                     |  | Automotive                                |  | L + 4.75% (1.00% Floor) |  |              | 4/7/2020   |  |                     |   | 7,216  |                  |  |   | 7,192        |   |  |                        | 7,208  |   |  |  | 0.94 |  
|Derm Growth Partners III,LLC (DermatologyAssociates)(2) (3) (4) (5) (13) (15) |  | Healthcare & Pharmaceuticals              |  | L + 6.50% (1.00% Floor) |  |              | 5/31/2022  |  |                     |   | 41,005 |                  |  |   | 40,468       |   |  |                        | 40,842 |   |  |  | 5.35 |  
|DermaRite Industries,LLC(2)
(3) (5)(15)                                       |  | Healthcare & Pharmaceuticals              |  | L + 7.00% (1.00% Floor) |  |              | 3/3/2022   |  |                     |   | 16,724 |                  |  |   | 16,381       |   |  |                        | 16,507 |   |  |  | 2.16 |  
|Dimensional DentalManagement,LLC(2) (3) (5)
(12) (15)                         |  | Healthcare & Pharmaceuticals              |  | L + 7.00% (1.00% Floor) |  |              | 2/12/2021  |  |                     |   | 19,066 |                  |  |   | 18,684       |   |  |                        | 19,129 |   |  |  | 2.51 |  
|Dimora Brands, Inc. (fka TKUSA Enterprises,Inc.)(2) (3) (5) (15)              |  | Construction & Building                   |  | L + 4.50% (1.00% Floor) |  |              | 4/4/2022   |  |                     |   |       |                  |  |   | (57          | ) |  |                        | (14    | ) |  |  | 0.00 |  
|Direct Travel,Inc.(2) (3) (4) (5)
(13) (15)                                   |  | Hotel, Gaming & Leisure                   |  | L + 6.50% (1.00% Floor) |  |              | 12/1/2021  |  |                     |   | 12,782 |                  |  |   | 12,382       |   |  |                        | 12,708 |   |  |  | 1.66 |  
|EIP Merger Sub, LLC (EvolveIP)(2) (3) (5) (12)
(13) (16)                      |  | Telecommunications                        |  | L + 6.25% (1.00% Floor) |  |              | 6/7/2021   |  |                     |   | 23,750 |                  |  |   | 23,119       |   |  |                        | 23,356 |   |  |  | 3.06 |  
|EP Minerals, LLC(2) (3) (4) (13)                                              |  | Metals & Mining                           |  | L + 4.50% (1.00% Floor) |  |              | 8/20/2020  |  |                     |   | 10,238 |                  |  |   | 10,207       |   |  |                        | 10,237 |   |  |  | 1.34 |  
|FCX HoldingsCorp.(2) (3) (4)
(13) (16)                                        |  | Capital Equipment                         |  | L + 4.50% (1.00% Floor) |  |              | 8/4/2020   |  |                     |   | 9,849  |                  |  |   | 9,845        |   |  |                        | 9,849  |   |  |  | 1.29 |  
|Genex Holdings, Inc.(2) (3) (13)
(16)                                         |  | Banking, Finance, Insurance & Real Estate |  | L + 4.25% (1.00% Floor) |  |              | 5/30/2021  |  |                     |   | 4,189  |                  |  |   | 4,177        |   |  |                        | 4,181  |   |  |  | 0.55 |  
|Global Software,LLC(2) (3) (4) (5) (13)                                       |  | High Tech Industries                      |  | L + 5.50% (1.00% Floor) |  |              | 5/2/2022   |  |                     |   | 20,963 |                  |  |   | 20,595       |   |  |                        | 20,734 |   |  |  | 2.72 |  
|Green Energy Partners/StonewallLLC(2) (3) (5)
(13)                            |  | Energy: Electricity                       |  | L + 5.50% (1.00% Floor) |  |              | 11/13/2021 |  |                     |   | 16,600 |                  |  |   | 16,479       |   |  |                        | 16,612 |   |  |  | 2.18 |  
|Green Plains IILLC(2) (3) (4) (5) (13)
(15) (16)                              |  | Beverage, Food & Tobacco                  |  | L + 7.00% (1.00% Floor) |  |              | 10/3/2022  |  |                     |   | 15,229 |                  |  |   | 15,089       |   |  |                        | 15,465 |   |  |  | 2.03 |  
|Hummel StationLLC(2) (3) (5)
(13) (16)                                        |  | Energy: Electricity                       |  | L + 6.00% (1.00% Floor) |  |              | 10/27/2022 |  |                     |   | 21,000 |                  |  |   | 20,331       |   |  |                        | 20,292 |   |  |  | 2.66 |  
|Imagine! Print Solutions,LLC(2) (3)
(4) (13)                                  |  | Media: Advertising, Printing & Publishing |  | L + 6.00% (1.00% Floor) |  |              | 3/30/2022  |  |                     |   | 18,414 |                  |  |   | 18,177       |   |  |                        | 18,414 |   |  |  | 2.41 |  
|Imperial Bag & Paper Co.LLC(2)
(3) (4) (13) (16)                              |  | Forest Products & Paper                   |  | L + 6.00% (1.00% Floor) |  |              | 1/7/2022   |  |                     |   | 24,013 |                  |  |   | 23,705       |   |  |                        | 23,983 |   |  |  | 3.14 |  



7



---

##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of March 31, 2017

(dollar amounts in
thousands)

(unaudited)



|                                                                           |  |                                           |  |                          |  |              |            |  |                     |   |        |                  |  |   |              |  |  |                        |        |  |  |  |      |  
|-------------------------------------------------------------------------- |  | ----------------------------------------- |  | ------------------------ |  | ------------ | ---------- |  | ------------------- | - | ------ | ---------------- |  | - | ------------ |  |  | ---------------------- | ------ |  |  |  | ---- | -
|Investmentsnon-controlled/non-affiliated (1)                              |  | Industry                                  |  | InterestRate(2)          |  | MaturityDate |            |  | Par/PrincipalAmount |   |        | AmortizedCost(6) |  |   | FairValue(7) |  |  | Percentageof NetAssets |       
|First Lien Debt (77.95%) (continued)                                       |  |                                           |  |                          |  |              |            |  |                     |   |        |                  |  |   |              |  |  |                        |        |  |  |  |      |  
|Indra Holdings Corp. (TotesIsotoner)(2) (3) (5)
(13)                       |  | Non-durable Consumer Goods                |  | L + 4.25% (1.00% Floor)  |  |              | 5/1/2021   |  |                     | $ | 14,224 |                  |  | $ | 14,135       |  |  | $                      | 9,264  |  |  |  | 1.21 | %
|International Medical Group,Inc.(2) (3)
(5) (12) (16)                      |  | Banking, Finance, Insurance & Real Estate |  | L + 6.50% (1.00% Floor)  |  |              | 10/30/2020 |  |                     |   | 30,000 |                  |  |   | 29,526       |  |  |                        | 30,371 |  |  |  | 3.98 |  
|Jackson Hewitt Inc.(2) (3) (4)
(13)                                        |  | Retail                                    |  | L + 7.00% (1.00% Floor)  |  |              | 7/30/2020  |  |                     |   | 8,758  |                  |  |   | 8,632        |  |  |                        | 8,276  |  |  |  | 1.08 |  
|Legacy.com Inc.(2) (3) (5) (12)                                            |  | High Tech Industries                      |  | L + 6.00% (1.00% Floor)  |  |              | 3/20/2023  |  |                     |   | 17,000 |                  |  |   | 16,619       |  |  |                        | 16,708 |  |  |  | 2.19 |  
|Metrogistics LLC(2) (3) (4) (13)                                           |  | Transportation: Cargo                     |  | L + 6.50% (1.00% Floor)  |  |              | 9/30/2022  |  |                     |   | 15,105 |                  |  |   | 14,900       |  |  |                        | 15,105 |  |  |  | 1.98 |  
|National Technical Systems,Inc.(2) (3) (4)
(13) (15)                       |  | Aerospace & Defense                       |  | L + 6.25% (1.00% Floor)  |  |              | 6/12/2021  |  |                     |   | 25,123 |                  |  |   | 24,867       |  |  |                        | 24,234 |  |  |  | 3.17 |  
|NES Global Talent FinanceUS LLC
(UnitedKingdom)(2) (3) (4) (8) (13)        |  | Energy: Oil & Gas                         |  | L + 5.50% (1.00% Floor)  |  |              | 10/3/2019  |  |                     |   | 11,094 |                  |  |   | 10,985       |  |  |                        | 10,751 |  |  |  | 1.41 |  
|OnCourse LearningCorporation(2) (3) (4)
(5) (13) (15)                      |  | Consumer Services                         |  | L + 6.50% (1.00% Floor)  |  |              | 9/12/2021  |  |                     |   | 26,077 |                  |  |   | 25,724       |  |  |                        | 26,288 |  |  |  | 3.44 |  
|Paradigm AcquisitionCorp.(2) (3)
(4) (13)                                  |  | Business Services                         |  | L + 5.00% (1.00% Floor)  |  |              | 6/2/2022   |  |                     |   | 11,217 |                  |  |   | 11,086       |  |  |                        | 11,217 |  |  |  | 1.47 |  
|Pelican Products, Inc.(2) (3) (4)
(13)                                     |  | Containers, Packaging & Glass             |  | L + 4.25% (1.00% Floor)  |  |              | 4/11/2020  |  |                     |   | 7,623  |                  |  |   | 7,634        |  |  |                        | 7,604  |  |  |  | 1.00 |  
|Plano Molding Company,LLC(2) (3) (4) (5)
(13)                              |  | Hotel, Gaming & Leisure                   |  | L + 7.50% (1.00% Floor)  |  |              | 5/12/2021  |  |                     |   | 18,117 |                  |  |   | 17,990       |  |  |                        | 17,262 |  |  |  | 2.26 |  
|PPT Management Holdings,LLC(2) (3) (5)
(13)                                |  | Healthcare & Pharmaceuticals              |  | L + 6.00% (1.00% Floor)  |  |              | 12/16/2022 |  |                     |   | 22,444 |                  |  |   | 22,240       |  |  |                        | 22,457 |  |  |  | 2.94 |  
|Premier Senior Marketing,LLC(2) (3) (5)
(16)                               |  | Banking, Finance, Insurance & Real Estate |  | L + 5.00% (1.00% Floor)  |  |              | 7/1/2022   |  |                     |   | 3,731  |                  |  |   | 3,683        |  |  |                        | 3,731  |  |  |  | 0.49 |  
|Product Quest Manufacturing,LLC(2) (3) (4)
(5) (12) (16)                   |  | Containers, Packaging & Glass             |  | L + 5.75% (1.00% Floor)  |  |              | 9/9/2020   |  |                     |   | 28,000 |                  |  |   | 27,588       |  |  |                        | 25,864 |  |  |  | 3.39 |  
|Prowler Acquisition Corp.(Pipeline Supply and Service,LLC)(2) (3) (4)      |  | Wholesale                                 |  | L + 4.50% (1.00% Floor)  |  |              | 1/28/2020  |  |                     |   | 10,769 |                  |  |   | 10,714       |  |  |                        | 8,773  |  |  |  | 1.15 |  
|PSC Industrial HoldingsCorp(2) (3)
(4) (13)                                |  | Environmental Industries                  |  | L + 4.75% (1.00% Floor)  |  |              | 12/5/2020  |  |                     |   | 11,730 |                  |  |   | 11,653       |  |  |                        | 11,482 |  |  |  | 1.50 |  
|PT Intermediate Holdings III,LLC (PartsTown)(2) (3) (4) (5) (13) (15) (16) |  | Wholesale                                 |  | L + 6.50% (1.00% Floor)  |  |              | 6/23/2022  |  |                     |   | 19,545 |                  |  |   | 19,336       |  |  |                        | 19,447 |  |  |  | 2.55 |  
|QW Holding Corporation(Quala)(2) (3) (4)
(5) (13)                          |  | Environmental Industries                  |  | L + 6.75% (1.00% Floor)  |  |              | 8/31/2022  |  |                     |   | 29,925 |                  |  |   | 29,122       |  |  |                        | 30,131 |  |  |  | 3.95 |  
|Reliant Pro Rehab,LLC(2) (3)
(5) (12)                                      |  | Healthcare & Pharmaceuticals              |  | L + 10.00% (1.00% Floor) |  |              | 12/29/2017 |  |                     |   | 22,275 |                  |  |   | 22,101       |  |  |                        | 22,264 |  |  |  | 2.92 |  
|SolAreo TechnologiesCorp.(2) (3)
(4) (5)                                   |  | Telecommunications                        |  | L + 5.25% (1.00% Floor)  |  |              | 12/10/2020 |  |                     |   | 19,418 |                  |  |   | 19,292       |  |  |                        | 18,049 |  |  |  | 2.36 |  
|Superior Health Linens,LLC(2) (3) (4) (5) (13)
(15)                        |  | Business Services                         |  | L + 6.50% (1.00% Floor)  |  |              | 9/30/2021  |  |                     |   | 19,208 |                  |  |   | 18,908       |  |  |                        | 19,012 |  |  |  | 2.49 |  
|T2 Systems Canada, Inc.(2) (3) (5)                                         |  | Transportation: Consumer                  |  | L + 6.75% (1.00% Floor)  |  |              | 9/28/2022  |  |                     |   | 4,040  |                  |  |   | 3,946        |  |  |                        | 4,045  |  |  |  | 0.53 |  
|T2 Systems, Inc.(2) (3) (4) (5) (13)
(15)                                  |  | Transportation: Consumer                  |  | L + 6.75% (1.00% Floor)  |  |              | 9/28/2022  |  |                     |   | 22,892 |                  |  |   | 22,298       |  |  |                        | 22,924 |  |  |  | 3.00 |  
|The Hilb Group,LLC(2) (3) (5)
(12) (15)                                    |  | Banking, Finance, Insurance & Real Estate |  | L + 6.00% (1.00% Floor)  |  |              | 6/24/2021  |  |                     |   | 31,313 |                  |  |   | 30,744       |  |  |                        | 30,849 |  |  |  | 4.04 |  
|The SI Organization,Inc.(2) (3)
(4) (13)                                   |  | Aerospace & Defense                       |  | L + 4.75% (1.00% Floor)  |  |              | 11/23/2019 |  |                     |   | 8,552  |                  |  |   | 8,507        |  |  |                        | 8,637  |  |  |  | 1.13 |  
|The Topps Company,Inc.(2) (3)
(4) (13)                                     |  | Non-durable Consumer Goods                |  | L + 6.00% (1.00% Floor)  |  |              | 10/2/2020  |  |                     |   | 18,657 |                  |  |   | 18,588       |  |  |                        | 18,654 |  |  |  | 2.44 |  
|Truckpro, LLC.(2) (3) (4) (13)
(16)                                        |  | Automotive                                |  | L + 5.00% (1.00% Floor)  |  |              | 8/6/2018   |  |                     |   | 9,194  |                  |  |   | 9,173        |  |  |                        | 9,170  |  |  |  | 1.20 |  
|Tweddle Group, Inc.(2) (3) (4) (13)                                        |  | Media: Advertising, Printing & Publishing |  | L + 6.00% (1.00% Floor)  |  |              | 10/24/2022 |  |                     |   | 15,998 |                  |  |   | 15,697       |  |  |                        | 16,063 |  |  |  | 2.10 |  



8



---

##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of March 31, 2017

(dollar amounts in
thousands)

(unaudited)



|                                                                                    |  |                                           |  |                                    |  |              |            |  |                     |   |        |                  |  |   |              |   |  |                        |           |   |  |  |        |  
|----------------------------------------------------------------------------------- |  | ----------------------------------------- |  | ---------------------------------- |  | ------------ | ---------- |  | ------------------- | - | ------ | ---------------- |  | - | ------------ | - |  | ---------------------- | --------- | - |  |  | ------ | -
|Investmentsnon-controlled/non-affiliated (1)                                       |  | Industry                                  |  | InterestRate(2)                    |  | MaturityDate |            |  | Par/PrincipalAmount |   |        | AmortizedCost(6) |  |   | FairValue(7) |   |  | Percentageof NetAssets |          
|First Lien Debt (77.95%) (continued)                                                |  |                                           |  |                                    |  |              |            |  |                     |   |        |                  |  |   |              |   |  |                        |           |   |  |  |        |  
|TwentyEighty, Inc.Revolver(fka Miller Heiman,Inc.)(2) (3) (5) (10) (15)            |  | Business Services                         |  | L + 8.00% (1.00% Floor)            |  |              | 3/21/2020  |  |                     | $ |       |                  |  | $ | (7           | ) |  | $                      | (3        | ) |  |  | 0.00   | %
|TwentyEighty, Inc.(Term ALoans) (2) (3)
(5) (10)                                   |  | Business Services                         |  | L + 3.50% (1.00% Floor), 4.50% PIK |  |              | 3/31/2020  |  |                     |   | 2,860  |                  |  |   | 2,844        |   |  |                        | 2,843     |   |  |  | 0.37   |  
|TwentyEighty, Inc.(Term BLoans) (5) (10)                                           |  | Business Services                         |  | 1.00%, 7.00% PIK                   |  |              | 3/31/2020  |  |                     |   | 4,698  |                  |  |   | 4,698        |   |  |                        | 3,773     |   |  |  | 0.50   |  
|TwentyEighty, Inc.(Term CLoans) (5)
(10)                                           |  | Business Services                         |  | 0.25%, 8.75% PIK                   |  |              | 3/31/2020  |  |                     |   | 4,485  |                  |  |   | 4,485        |   |  |                        | 2,245     |   |  |  | 0.29   |  
|U.S. TelePacific HoldingsCorp.(2)
(3) (5)                                           |  | Telecommunications                        |  | L + 8.50% (1.00% Floor)            |  |              | 2/24/2021  |  |                     |   | 30,000 |                  |  |   | 29,189       |   |  |                        | 30,027    |   |  |  | 3.93   |  
|Vetcor Professional Practices,LLC(2) (3) (4)
(5) (13) (15)                          |  | Consumer Services                         |  | L + 6.00% (1.00% Floor)            |  |              | 4/20/2021  |  |                     |   | 28,488 |                  |  |   | 28,028       |   |  |                        | 28,737    |   |  |  | 3.76   |  
|Violin Finco S.A.R.L. (AlexanderMann Solutions) (UnitedKingdom)(2) (3) (4) (8) (13) |  | Business Services                         |  | L + 4.75% (1.00% Floor)            |  |              | 12/20/2019 |  |                     |   | 10,034 |                  |  |   | 9,985        |   |  |                        | 10,034    |   |  |  | 1.31   |  
|Vistage WorldwideInc.(2) (3) (4)
(13) (16)                                          |  | Business Services                         |  | L + 5.50% (1.00% Floor)            |  |              | 8/19/2021  |  |                     |   | 28,757 |                  |  |   | 28,534       |   |  |                        | 28,964    |   |  |  | 3.79   |  
|VRC Companies,LLC(2) (3) (5) (13)
(15) (17)                                         |  | Business Services                         |  | L + 6.50% (1.00% Floor)            |  |              | 3/31/2023  |  |                     |   | 25,632 |                  |  |   | 24,923       |   |  |                        | 25,140    |   |  |  | 3.29   |  
|Winchester ElectronicsCorporation(2) (3) (4)
(5) (13) (15)                          |  | Capital Equipment                         |  | L + 6.50% (1.00% Floor)            |  |              | 6/30/2022  |  |                     |   | 27,298 |                  |  |   | 26,914       |   |  |                        | 27,749    |   |  |  | 3.64   |  
|Zest Holdings, LLC(2) (3) (4) (13)                                                  |  | Durable Consumer Goods                    |  | L + 4.75% (1.00% Floor)            |  |              | 8/16/2020  |  |                     |   | 9,530  |                  |  |   | 9,530        |   |  |                        | 9,523     |   |  |  | 1.25   |  
|                                                                                    |  |                                           |  |                                    |  |              |            |  |                     |   |        |                  |  |   |              |   |  |                        |           |   |  |  |        |  
|First Lien Debt Total                                                               |  |                                           |  |                                    |  |              |            |  |                     |   |        |                  |  | $ | 1,088,396    |   |  | $                      | 1,085,554 |   |  |  | 142.20 | %
|                                                                                    |  |                                           |  |                                    |  |              |            |  |                     |   |        |                  |  |   |              |   |  |                        |           |   |  |  |        |  
|Second Lien Debt (11.61%)                                                           |  |                                           |  |                                    |  |              |            |  |                     |   |        |                  |  |   |              |   |  |                        |          
|AIM Group USA Inc.(2) (3) (5) (13)                                                  |  | Aerospace & Defense                       |  | L + 9.00% (1.00% Floor)            |  |              | 8/2/2022   |  |                     | $ | 23,000 |                  |  | $ | 22,710       |   |  | $                      | 23,025    |   |  |  | 3.02   | %
|AmeriLife Group,LLC(2) (3) (5)
(13) (16)                                            |  | Banking, Finance, Insurance & Real Estate |  | L + 8.75% (1.00% Floor)            |  |              | 1/10/2023  |  |                     |   | 20,000 |                  |  |   | 19,665       |   |  |                        | 19,318    |   |  |  | 2.53   |  
|Argon Medical Devices,Inc.(2) (3) (4)
(5)                                           |  | Healthcare & Pharmaceuticals              |  | L + 9.50% (1.00% Floor)            |  |              | 6/23/2022  |  |                     |   | 24,000 |                  |  |   | 23,381       |   |  |                        | 24,437    |   |  |  | 3.20   |  
|Berlin Packaging L.L.C.(2) (3) (5)
(13)                                             |  | Containers, Packaging & Glass             |  | L + 6.75% (1.00% Floor)            |  |              | 10/1/2022  |  |                     |   | 2,927  |                  |  |   | 2,910        |   |  |                        | 2,949     |   |  |  | 0.39   |  
|Charter NEX US Holdings,Inc.(2) (3) (5)
(13)                                        |  | Chemicals, Plastics & Rubber              |  | L + 8.25% (1.00% Floor)            |  |              | 2/5/2023   |  |                     |   | 7,394  |                  |  |   | 7,305        |   |  |                        | 7,394     |   |  |  | 0.97   |  
|Confie Seguros Holding IICo.(2) (3) (5) (13)                                        |  | Banking, Finance, Insurance & Real Estate |  | L + 9.00% (1.25% Floor)            |  |              | 5/8/2019   |  |                     |   | 9,000  |                  |  |   | 8,945        |   |  |                        | 8,947     |   |  |  | 1.17   |  
|Drew Marine GroupInc.(2) (3) (4)
(5) (13)                                           |  | Chemicals, Plastics & Rubber              |  | L + 7.00% (1.00% Floor)            |  |              | 5/19/2021  |  |                     |   | 12,500 |                  |  |   | 12,482       |   |  |                        | 12,373    |   |  |  | 1.62   |  
|Genex Holdings, Inc.(2) (3) (5) (16)                                                |  | Banking, Finance, Insurance & Real Estate |  | L + 7.75% (1.00% Floor)            |  |              | 5/30/2022  |  |                     |   | 7,990  |                  |  |   | 7,917        |   |  |                        | 7,990     |   |  |  | 1.05   |  
|Institutional Shareholder ServicesInc.(2) (3)
(5) (13)                              |  | Banking, Finance, Insurance & Real Estate |  | L + 8.50% (1.00% Floor)            |  |              | 4/29/2022  |  |                     |   | 12,500 |                  |  |   | 12,409       |   |  |                        | 12,448    |   |  |  | 1.63   |  
|Jazz Acquisition, Inc.(Wencor)(2) (3) (5)
(13)                                      |  | Aerospace & Defense                       |  | L + 6.75% (1.00% Floor)            |  |              | 6/19/2022  |  |                     |   | 6,700  |                  |  |   | 6,677        |   |  |                        | 5,901     |   |  |  | 0.77   |  
|MRI Software, LLC(2) (3) (5)                                                        |  | Software                                  |  | L + 8.00% (1.00% Floor)            |  |              | 6/23/2022  |  |                     |   | 11,250 |                  |  |   | 11,115       |   |  |                        | 11,305    |   |  |  | 1.48   |  
|Power Stop, LLC(5) (9)                                                              |  | Automotive                                |  | 11.00%                             |  |              | 5/29/2022  |  |                     |   | 10,000 |                  |  |   | 9,836        |   |  |                        | 9,957     |   |  |  | 1.30   |  
|Prowler Acquisition Corp.(Pipeline Supply and Service,LLC)(2) (3) (5)               |  | Wholesale                                 |  | L + 8.50% (1.00% Floor)            |  |              | 7/28/2020  |  |                     |   | 3,000  |                  |  |   | 2,962        |   |  |                        | 1,856     |   |  |  | 0.24   |  
|Ramundsen Public Sector,LLC(2) (3)
(5)                                              |  | Sovereign & Public Finance                |  | L + 8.50% (1.00% Floor)            |  |              | 1/31/2025  |  |                     |   | 1,800  |                  |  |   | 1,783        |   |  |                        | 1,800     |   |  |  | 0.24   |  



9



---

##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of March 31, 2017

(dollar amounts in
thousands)

(unaudited)



|                                              |  |                                           |  |                         |  |              |            |  |                     |  |       |                  |  |   |              |  |  |                        |         |  |  |  |       |  
|--------------------------------------------- |  | ----------------------------------------- |  | ----------------------- |  | ------------ | ---------- |  | ------------------- |  | ----- | ---------------- |  | - | ------------ |  |  | ---------------------- | ------- |  |  |  | ----- | -
|Investmentsnon-controlled/non-affiliated (1) |  | Industry                                  |  | InterestRate(2)         |  | MaturityDate |            |  | Par/PrincipalAmount |  |       | AmortizedCost(6) |  |   | FairValue(7) |  |  | Percentageof NetAssets |        
|Second Lien Debt (11.61%)(continued)          |  |                                           |  |                         |  |              |            |  |                     |  |       |                  |  |   |              |  |  |                        |        
|Watchfire Enterprises,Inc.(2) (3)
(5) (13)    |  | Media: Advertising, Printing & Publishing |  | L + 8.00% (1.00% Floor) |  |              | 10/2/2021  |  |                     |  | 7,000 |                  |  | $ | 6,934        |  |  | $                      | 6,994   |  |  |  | 0.92  | %
|Zywave, Inc.(2) (3) (5)                       |  | High Tech Industries                      |  | L + 9.00% (1.00% Floor) |  |              | 11/17/2023 |  |                     |  | 4,950 |                  |  |   | 4,881        |  |  |                        | 4,949   |  |  |  | 0.65  |  
|                                              |  |                                           |  |                         |  |              |            |  |                     |  |       |                  |  |   |              |  |  |                        |         |  |  |  |       |  
|Second Lien Debt Total                        |  |                                           |  |                         |  |              |            |  |                     |  |       |                  |  | $ | 161,912      |  |  | $                      | 161,643 |  |  |  | 21.18 | %
|                                              |  |                                           |  |                         |  |              |            |  |                     |  |       |                  |  |   |              |  |  |                        |         |  |  |  |       |  



|                                                    |  |                    |  |              |           |  |           |   |        |                   |  |   |               |  |  |                         |       |  |  |  |      |  
|--------------------------------------------------- |  | ------------------ |  | ------------ | --------- |  | --------- | - | ------ | ----------------- |  | - | ------------- |  |  | ----------------------- | ----- |  |  |  | ---- | -
|Investmentsnon-controlled/non-affiliated (1)       |  | Industry           |  | MaturityDate |           |  | ParAmount |   |        | AmortizedCost (6) |  |   | FairValue (7) |  |  | Percentage ofNet Assets |      
|Structured Finance Obligations (0.20%) (5)
(8) (11) |  |                    |  |              |           |  |           |   |        |                   |  |   |               |  |  |                         |       |  |  |  |      |  
|1776 CLO I, Ltd., Subordinated Notes                |  | Structured Finance |  |              | 5/8/2020  |  |           | $ | 11,750 |                   |  | $ | 6,519         |  |  | $                       | 2,761 |  |  |  | 0.36 | %
|Clydesdale CLO 2005, Ltd., Subordinated Notes       |  | Structured Finance |  |              | 12/6/2017 |  |           |   | 5,750  |                   |  |   |              |  |  |                         | 10    |  |  |  | 0.00 |  
|MSIM Peconic Bay, Ltd., Subordinated Notes          |  | Structured Finance |  |              | 7/20/2019 |  |           |   | 4,500  |                   |  |   | 63            |  |  |                         | 5     |  |  |  | 0.00 |  
|                                                    |  |                    |  |              |           |  |           |   |        |                   |  |   |               |  |  |                         |       |  |  |  |      |  
|Structured Finance Obligations Total                |  |                    |  |              |           |  |           |   |        |                   |  | $ | 6,582         |  |  | $                       | 2,776 |  |  |  | 0.36 | %
|                                                    |  |                    |  |              |           |  |           |   |        |                   |  |   |               |  |  |                         |       |  |  |  |      |  



|                                                       |  |                                           |  |              |           |  |      |   |           |               |  |   |                         |  |  |  |        |  
|------------------------------------------------------ |  | ----------------------------------------- |  | ------------ | --------- |  | ---- | - | --------- | ------------- |  | - | ----------------------- |  |  |  | ------ | -
|Investmentsnon-controlled/non-affiliated (1)          |  | Industry                                  |  | Shares/Units |           |  | Cost |   |           | FairValue (7) |  |   | Percentage ofNet Assets | 
|Equity Investments (0.61%) (5)                         |  |                                           |  |              |           |  |      |   |           |               |  |   |                         |  |  |  |        |  
|CIP Revolution Investments, LLC                        |  | Media: Advertising, Printing & Publishing |  |              | 300,000   |  |      | $ | 300       |               |  | $ | 411                     |  |  |  | 0.05   | %
|Derm Growth Partners III, LLC (Dermatology Associates) |  | Healthcare & Pharmaceuticals              |  |              | 1,000,000 |  |      |   | 1,000     |               |  |   | 1,230                   |  |  |  | 0.16   |  
|GS Holdco LLC (Global Software, LLC)                   |  | High Tech Industries                      |  |              | 1,000,000 |  |      |   | 1,001     |               |  |   | 1,207                   |  |  |  | 0.16   |  
|Legacy.com Inc.                                        |  | High Tech Industries                      |  |              | 1,500,000 |  |      |   | 1,500     |               |  |   | 1,500                   |  |  |  | 0.20   |  
|Power Stop Intermediate Holdings, LLC                  |  | Automotive                                |  |              | 7,150     |  |      |   | 715       |               |  |   | 1,314                   |  |  |  | 0.17   |  
|T2 Systems Parent Corporation                          |  | Transportation: Consumer                  |  |              | 555,556   |  |      |   | 556       |               |  |   | 533                     |  |  |  | 0.07   |  
|THG Acquisition, LLC (The Hilb Group, LLC)             |  | Banking, Finance, Insurance & Real Estate |  |              | 1,500,000 |  |      |   | 1,500     |               |  |   | 2,256                   |  |  |  | 0.30   |  
|TwentyEighty Investors LLC                             |  | Business Services                         |  |              | 51,936    |  |      |   |          |               |  |   |                        |  |  |  | 0.00   |  
|                                                       |  |                                           |  |              |           |  |      |   |           |               |  |   |                         |  |  |  |        |  
|Equity Investments Total                               |  |                                           |  |              |           |  |      | $ | 6,572     |               |  | $ | 8,451                   |  |  |  | 1.11   | %
|                                                       |  |                                           |  |              |           |  |      |   |           |               |  |   |                         |  |  |  |        |  
|Total
investmentsnon-controlled/non-affiliated        |  |                                           |  |              |           |  |      | $ | 1,263,462 |               |  | $ | 1,258,424               |  |  |  | 164.86 | %
|                                                       |  |                                           |  |              |           |  |      |   |           |               |  |   |                         |  |  |  |        |  



|                                                                                 |  |                 |  |                 |  |              |           |  |                       |   |        |      |  |   |               |  |  |                         |           |  |  |  |        |  
|-------------------------------------------------------------------------------- |  | --------------- |  | --------------- |  | ------------ | --------- |  | --------------------- | - | ------ | ---- |  | - | ------------- |  |  | ----------------------- | --------- |  |  |  | ------ | -
|Investmentscontrolled/affiliated                                                |  | Industry        |  | InterestRate(2) |  | MaturityDate |           |  | ParAmount/LLCInterest |   |        | Cost |  |   | FairValue (7) |  |  | Percentage ofNet Assets |          
|Investment Fund (9.63%) (8)                                                      |  |                 |  |                 |  |              |           |  |                       |   |        |      |  |   |               |  |  |                         |           |  |  |  |        |  
|Middle Market Credit Fund, LLC, Mezzanine Loan (2)
(5) (9) (14)                  |  | Investment Fund |  | L+9.50%         |  |              | 6/24/2017 |  |                       | $ | 86,044 |      |  | $ | 86,044        |  |  | $                       | 86,044    |  |  |  | 11.27  | %
|Middle Market Credit Fund, LLC, Subordinated Loan and Members Interest (5) (14) |  | Investment Fund |  | 0.001           |  |              | 3/1/2021  |  |                       |   | 45,501 |      |  |   | 45,501        |  |  |                         | 48,077    |  |  |  | 6.30   |  
|                                                                                 |  |                 |  |                 |  |              |           |  |                       |   |        |      |  |   |               |  |  |                         |           |  |  |  |        |  
|Investment Fund Total                                                            |  |                 |  |                 |  |              |           |  |                       |   |        |      |  | $ | 131,545       |  |  | $                       | 134,121   |  |  |  | 17.57  | %
|                                                                                 |  |                 |  |                 |  |              |           |  |                       |   |        |      |  |   |               |  |  |                         |           |  |  |  |        |  
|Total investmentscontrolled/affiliated                                          |  |                 |  |                 |  |              |           |  |                       |   |        |      |  | $ | 131,545       |  |  | $                       | 134,121   |  |  |  | 17.57  | %
|                                                                                 |  |                 |  |                 |  |              |           |  |                       |   |        |      |  |   |               |  |  |                         |           |  |  |  |        |  
|Total investments                                                                |  |                 |  |                 |  |              |           |  |                       |   |        |      |  | $ | 1,395,007     |  |  | $                       | 1,392,545 |  |  |  | 182.42 | %
|                                                                                 |  |                 |  |                 |  |              |           |  |                       |   |        |      |  |   |               |  |  |                         |           |  |  |  |        |  



|(1) | Unless otherwise indicated, issuers of debt and equity investments held by TCG BDC, Inc. (together with its consolidated subsidiaries, we, us, our, TCG BDC or the
Company) are domiciled in the United States and issuers of structured finance obligations are domiciled in the Cayman Islands. Under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated
thereunder, the Investment Company Act), the Company would be deemed to control a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the
management or policies of the portfolio company. As of March 31, 2017, the Company does not control any of these portfolio companies. Under the Investment Company Act, the Company would be deemed an affiliated person of
a portfolio company if the Company owns 5% or more of the portfolio companys outstanding voting securities. As of March 31, 2017, the Company is not an affiliated person of any of these portfolio companies.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



10



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of March 31, 2017

(dollar amounts in
thousands)

(unaudited)



|(2) | Variable rate loans to the portfolio companies and variable rate notes of structured finance obligations bear interest at a rate that may be determined by reference to either LIBOR (L) or an alternate base
rate (commonly based on the Federal Funds Rate or the U.S. Prime Rate), which generally resets quarterly. For each such loan and note, the Company has provided the interest rate in effect as of March 31, 2017. As of March 31, 2017, all of
our LIBOR loans were indexed to the 90-day LIBOR rate at 1.15%, except for those loans as indicated in Notes 16 and 17 below.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Loan includes interest rate floor feature.
|--- | ------------------------------------------

|(4) | Denotes that all or a portion of the assets are owned by the Companys wholly owned subsidiary, TCG BDC SPV LLC (the SPV). The SPV has entered into a senior secured revolving credit facility (as
amended, the SPV Credit Facility). The lenders of the SPV Credit Facility have a first lien security interest in substantially all of the assets of the SPV (see Note 6, Borrowings). Accordingly, such assets are not available to creditors
of the Company or the 2015-1 Issuer.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Denotes that all or a portion of the assets are owned by the Company. The Company has entered into a senior secured revolving credit facility (as amended, the Credit Facility and, together with the SPV
Credit Facility, the Facilities). The lenders of the Credit Facility have a first lien security interest in substantially all of the portfolio investments held by the Company (see Note 6, Borrowings). Accordingly, such assets are not
available to creditors of the SPV or Carlyle GMS Finance MM CLO 2015-1 LLC (the 2015-1 Issuer).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable,
on debt investments using the effective interest method. Equity tranche collateralized loan obligation (CLO) fund investments, which are referred to as structured finance obligations, are recorded at amortized cost using the
effective interest method.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | Fair value is determined in good faith by or under the direction of the Board of Directors of the Company (see Note 2, Significant Accounting Policies, and Note 3, Fair Value Measurements), pursuant to the
Companys valuation policy.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | The Company has determined the indicated investments are non-qualifying assets under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may
not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Companys total assets.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(9) | Represents a corporate mezzanine loan, which is subordinated to senior secured term loans of the portfolio company/investment fund.
|--- | -----------------------------------------------------------------------------------------------------------------------------------

|(10) | Loan was on non-accrual status as of March 31, 2017.
|---- | ----------------------------------------------------

|(11) | As of March 31, 2017, the Company has a greater than 25% but less than 50% equity or subordinated notes ownership interest in certain structured finance obligations. These investments have governing documents that
preclude the Company from controlling management of the entity and therefore the Company has determined that the issuer of the investment is not a controlled affiliate or a non-controlled affiliate because the
investments are not voting securities.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(12) | In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among
lenders as follows: Dimensional Dental Management, LLC (4.70%), EIP Merger Sub, LLC (Evolve IP) (3.91%), International Medical Group, Inc. (4.79%), Legacy.com Inc. (3.79%), Product Quest Manufacturing, LLC (3.66%), Reliant Pro Rehab, LLC (nil) and
The Hilb Group, LLC (3.33%). Pursuant to the agreement among lenders in respect of this loan, this investment represents a first lien/last out loan, which has a secondary priority behind the first lien/first out loan with respect to principal,
interest and other payments.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(13) | Denotes that all or a portion of the assets are owned by the 2015-1 Issuer and secure the notes issued in connection with a $400 million term debt securitization completed by
the Company on June 26, 2015 (see Note 7, 2015-1 Notes). Accordingly, such assets are not available to the creditors of the SPV or the Company.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(14) | Under the Investment Company Act, the Company is deemed to be an affiliated person of and control this investment fund because the Company owns more than 25% of the investment funds
outstanding voting securities and/or has the power to exercise control over management or policies of such investment fund. See Note 5, Middle Market Credit Fund, LLC, for more details.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



11



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of March 31, 2017

(dollar amounts in
thousands)

(unaudited)



|(15) | As of March 31, 2017, the Company had the following unfunded commitments to fund delayed draw and revolving senior secured loans:
|---- | ---------------------------------------------------------------------------------------------------------------------------------



|                                                                           |  |              |  |           |      |   |                     |   |        |           |  |   |      |  
|-------------------------------------------------------------------------- |  | ------------ |  | --------- | ---- | - | ------------------- | - | ------ | --------- |  | - | ---- | -
|Investmentsnon-controlled/non-affiliated                                  |  | Type         |  | UnusedFee |      |   | Par/PrincipalAmount |   |        | FairValue | 
|First Lien Debtunfunded delayed draw and revolving term loans commitments |  |              |  |           |      |   |                     |   |        |           |  |   |      |  
|Advanced Instruments, LLC                                                  |  | Revolver     |  |           | 0.50 | % |                     | $ | 1,167  |           |  | $ | (2   | )
|Captive Resources Midco, LLC                                               |  | Delayed Draw |  |           | 1.25 | % |                     |   | 3,125  |           |  |   |     |  
|Captive Resources Midco, LLC                                               |  | Revolver     |  |           | 0.50 | % |                     |   | 1,875  |           |  |   |     |  
|CIP Revolution Holdings, LLC                                               |  | Delayed Draw |  |           | 0.75 | % |                     |   | 1,331  |           |  |   | 20   |  
|CIP Revolution Holdings, LLC                                               |  | Revolver     |  |           | 0.50 | % |                     |   | 1,331  |           |  |   | 20   |  
|DermaRite Industries, LLC                                                  |  | Revolver     |  |           | 0.50 | % |                     |   | 3,276  |           |  |   | (35  | )
|Derm Growth Partners III, LLC (Dermatology Associates)                     |  | Delayed Draw |  |           | 1.00 | % |                     |   | 2,217  |           |  |   | (8   | )
|Derm Growth Partners III, LLC (Dermatology Associates)                     |  | Revolver     |  |           | 0.50 | % |                     |   | 704    |           |  |   | (3   | )
|Dimensional Dental Management, LLC                                         |  | Delayed Draw |  |           | 1.00 | % |                     |   | 1,442  |           |  |   | 4    |  
|Dimora Brands, Inc. (fka TK USA Enterprises, Inc.)                         |  | Revolver     |  |           | 0.50 | % |                     |   | 4,750  |           |  |   | (14  | )
|Direct Travel, Inc.                                                        |  | Delayed Draw |  |           | 1.00 | % |                     |   | 9,658  |           |  |   | (32  | )
|Green Plains II LLC                                                        |  | Revolver     |  |           | 0.50 | % |                     |   | 1,291  |           |  |   | 18   |  
|National Technical Systems, Inc.                                           |  | Delayed Draw |  |           | 1.00 | % |                     |   | 4,469  |           |  |   | (123 | )
|National Technical Systems, Inc.                                           |  | Revolver     |  |           | 0.50 | % |                     |   | 2,031  |           |  |   | (73  | )
|OnCourse Learning Corporation                                              |  | Revolver     |  |           | 0.50 | % |                     |   | 859    |           |  |   | 7    |  
|PT Intermediate Holdings III, LLC (Parts Town)                             |  | Revolver     |  |           | 0.50 | % |                     |   | 1,429  |           |  |   | (7   | )
|Superior Health Linens, LLC                                                |  | Revolver     |  |           | 0.50 | % |                     |   | 2,614  |           |  |   | (24  | )
|T2 Systems, Inc.                                                           |  | Revolver     |  |           | 0.50 | % |                     |   | 2,933  |           |  |   | 4    |  
|The Hilb Group, LLC                                                        |  | Delayed Draw |  |           | 1.00 | % |                     |   | 10,902 |           |  |   | (120 | )
|TwentyEighty, Inc. (f/k/a Miller Heiman, Inc.)                             |  | Revolver     |  |           | 0.50 | % |                     |   | 452    |           |  |   | (3   | )
|Vetcor Professional Practices, LLC                                         |  | Delayed Draw |  |           | 1.00 | % |                     |   | 4,384  |           |  |   | 33   |  
|VRC Companies, LLC                                                         |  | Delayed Draw |  |           | 1.00 | % |                     |   | 4,513  |           |  |   | (69  | )
|VRC Companies, LLC                                                         |  | Revolver     |  |           | 0.50 | % |                     |   | 1,805  |           |  |   | (28  | )
|Winchester Electronics Corporation                                         |  | Delayed Draw |  |           | 1.00 | % |                     |   | 2,500  |           |  |   | 38   |  
|                                                                           |  |              |  |           |      |   |                     |   |        |           |  |   |      |  
|Total unfunded commitments                                                 |  |              |  |           |      |   |                     | $ | 71,058 |           |  | $ | (397 | )
|                                                                           |  |              |  |           |      |   |                     |   |        |           |  |   |      |  



|(16) | As of March 31, 2017, this LIBOR loan was indexed to the 30-day LIBOR rate at 0.98%.
|---- | ------------------------------------------------------------------------------------

|(17) | As of March 31, 2017, this LIBOR loan was indexed to the 180-day LIBOR rate at 1.42%.
|---- | -------------------------------------------------------------------------------------

As of March 31, 2017, investments at fair value consisted of the following:



|                               |  |                |           |  |            |   |           |                 |  |  |        |  
|------------------------------ |  | -------------- | --------- |  | ---------- | - | --------- | --------------- |  |  | ------ | -
|Type% of Fair Value           |  | Amortized Cost |           |  | Fair Value |   |           | % of Fair Value | 
|First Lien Debt                |  | $              | 1,088,396 |  |            | $ | 1,085,554 |                 |  |  | 77.95  | %
|Second Lien Debt               |  |                | 161,912   |  |            |   | 161,643   |                 |  |  | 11.61  |  
|Structured Finance Obligations |  |                | 6,582     |  |            |   | 2,776     |                 |  |  | 0.20   |  
|Equity Investments             |  |                | 6,572     |  |            |   | 8,451     |                 |  |  | 0.61   |  
|Investment Fund                |  |                | 131,545   |  |            |   | 134,121   |                 |  |  | 9.63   |  
|                               |  |                |           |  |            |   |           |                 |  |  |        |  
|Total                          |  | $              | 1,395,007 |  |            | $ | 1,392,545 |                 |  |  | 100.00 | %
|                               |  |                |           |  |            |   |           |                 |  |  |        |  



|                                                   |  |                |           |  |            |   |           |                 |  |  |        |  
|-------------------------------------------------- |  | -------------- | --------- |  | ---------- | - | --------- | --------------- |  |  | ------ | -
|Type% of Fair Value of First and Second Lien Debt |  | Amortized Cost |           |  | Fair Value |   |           | % of Fair Value | 
|Floating Rate                                      |  | $              | 1,231,289 |  |            | $ | 1,231,222 |                 |  |  | 98.72  | %
|Fixed Rate                                         |  |                | 19,019    |  |            |   | 15,975    |                 |  |  | 1.28   |  
|                                                   |  |                |           |  |            |   |           |                 |  |  |        |  
|Total                                              |  | $              | 1,250,308 |  |            | $ | 1,247,197 |                 |  |  | 100.00 | %
|                                                   |  |                |           |  |            |   |           |                 |  |  |        |  



12



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of March 31, 2017

(dollar amounts in
thousands)

(unaudited)



The industry composition of investments at fair value as of March 31, 2017 was as
follows:



|                                          |  |                |           |  |            |   |           |                 |  |  |        |  
|----------------------------------------- |  | -------------- | --------- |  | ---------- | - | --------- | --------------- |  |  | ------ | -
|Industry                                  |  | Amortized Cost |           |  | Fair Value |   |           | % of Fair Value | 
|Aerospace & Defense                       |  | $              | 62,761    |  |            | $ | 61,797    |                 |  |  | 4.44   | %
|Automotive                                |  |                | 26,916    |  |            |   | 27,649    |                 |  |  | 1.99   |  
|Banking, Finance, Insurance & Real Estate |  |                | 147,196   |  |            |   | 149,066   |                 |  |  | 10.70  |  
|Beverage, Food & Tobacco                  |  |                | 15,089    |  |            |   | 15,465    |                 |  |  | 1.11   |  
|Business Services                         |  |                | 123,636   |  |            |   | 121,538   |                 |  |  | 8.73   |  
|Capital Equipment                         |  |                | 36,759    |  |            |   | 37,598    |                 |  |  | 2.70   |  
|Chemicals, Plastics & Rubber              |  |                | 19,787    |  |            |   | 19,767    |                 |  |  | 1.42   |  
|Construction & Building                   |  |                | 23,375    |  |            |   | 23,663    |                 |  |  | 1.70   |  
|Consumer Services                         |  |                | 81,999    |  |            |   | 83,524    |                 |  |  | 6.00   |  
|Containers, Packaging & Glass             |  |                | 49,417    |  |            |   | 47,710    |                 |  |  | 3.43   |  
|Durable Consumer Goods                    |  |                | 19,790    |  |            |   | 19,312    |                 |  |  | 1.39   |  
|Energy: Electricity                       |  |                | 36,810    |  |            |   | 36,904    |                 |  |  | 2.65   |  
|Energy: Oil & Gas                         |  |                | 10,985    |  |            |   | 10,751    |                 |  |  | 0.77   |  
|Environmental Industries                  |  |                | 40,775    |  |            |   | 41,613    |                 |  |  | 2.99   |  
|Forest Products & Paper                   |  |                | 23,705    |  |            |   | 23,983    |                 |  |  | 1.72   |  
|Healthcare & Pharmaceuticals              |  |                | 161,881   |  |            |   | 164,877   |                 |  |  | 11.84  |  
|High Tech Industries                      |  |                | 44,596    |  |            |   | 45,098    |                 |  |  | 3.24   |  
|Hotel, Gaming & Leisure                   |  |                | 30,372    |  |            |   | 29,970    |                 |  |  | 2.15   |  
|Investment Fund                           |  |                | 131,545   |  |            |   | 134,121   |                 |  |  | 9.63   |  
|Media: Advertising, Printing & Publishing |  |                | 57,440    |  |            |   | 58,665    |                 |  |  | 4.21   |  
|Metals & Mining                           |  |                | 10,207    |  |            |   | 10,237    |                 |  |  | 0.74   |  
|Non-durable Consumer Goods                |  |                | 32,723    |  |            |   | 27,918    |                 |  |  | 2.00   |  
|Retail                                    |  |                | 8,632     |  |            |   | 8,276     |                 |  |  | 0.59   |  
|Software                                  |  |                | 11,115    |  |            |   | 11,305    |                 |  |  | 0.81   |  
|Sovereign & Public Finance                |  |                | 1,783     |  |            |   | 1,800     |                 |  |  | 0.13   |  
|Structured Finance                        |  |                | 6,582     |  |            |   | 2,776     |                 |  |  | 0.20   |  
|Telecommunications                        |  |                | 85,076    |  |            |   | 85,034    |                 |  |  | 6.11   |  
|Transportation: Cargo                     |  |                | 34,243    |  |            |   | 34,550    |                 |  |  | 2.48   |  
|Transportation: Consumer                  |  |                | 26,800    |  |            |   | 27,502    |                 |  |  | 1.97   |  
|Wholesale                                 |  |                | 33,012    |  |            |   | 30,076    |                 |  |  | 2.16   |  
|                                          |  |                |           |  |            |   |           |                 |  |  |        |  
|Total                                     |  | $              | 1,395,007 |  |            | $ | 1,392,545 |                 |  |  | 100.00 | %
|                                          |  |                |           |  |            |   |           |                 |  |  |        |  

The geographical composition of investments at fair value as of March 31, 2017 was as follows:



|               |  |                |           |  |            |   |           |                 |  |  |        |  
|-------------- |  | -------------- | --------- |  | ---------- | - | --------- | --------------- |  |  | ------ | -
|Geography      |  | Amortized Cost |           |  | Fair Value |   |           | % of Fair Value | 
|Cayman Islands |  | $              | 6,582     |  |            | $ | 2,776     |                 |  |  | 0.20   | %
|United Kingdom |  |                | 20,970    |  |            |   | 20,785    |                 |  |  | 1.49   |  
|United States  |  |                | 1,367,455 |  |            |   | 1,368,984 |                 |  |  | 98.31  |  
|               |  |                |           |  |            |   |           |                 |  |  |        |  
|Total          |  | $              | 1,395,007 |  |            | $ | 1,392,545 |                 |  |  | 100.00 | %
|               |  |                |           |  |            |   |           |                 |  |  |        |  

The accompanying notes are an integral part of these consolidated financial statements.



13



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of
December 31, 2016

(dollar amounts in thousands)



|                                                                               |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |        |   |                         |   |        |   |  |  |      |  
|------------------------------------------------------------------------------ |  | ----------------------------------------- |  | --------------- | ---------------------- |  | ------------ |  | ---------- | ------------------- |  | - | ---------------- |  |  | ------------ | ------ | - | ----------------------- | - | ------ | - |  |  | ---- | -
|Investmentsnon-controlled/non-affiliated (1)                                  |  | Industry                                  |  | InterestRate(2) |                        |  | MaturityDate |  |            | Par/PrincipalAmount |  |   | AmortizedCost(6) |  |  | FairValue(7) |        |   | Percentage ofNet Assets |  
|First Lien Debt (80.09%)                                                       |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |        |   |                         |   |        |   |  |  |      |  
|Access CIG, LLC(2) (3) (4) (13)                                                |  | Business Services                         |  |                 | L + 5.00%(1.00% Floor) |  |              |  | 10/17/2021 |                     |  | $ | 18,335           |  |  | $            | 18,222 |   |                         | $ | 18,335 |   |  |  | 2.40 | %
|Advanced Instruments,LLC(2) (3) (4) (5) (13)
(15)                              |  | Healthcare & Pharmaceuticals              |  |                 | L + 5.25%(1.00% Floor) |  |              |  | 10/31/2022 |                     |  |   | 22,500           |  |  |              | 22,019 |   |                         |   | 22,252 |   |  |  | 2.91 |  
|AF Borrower LLC(Accuvant)(2) (3)
(4)                                           |  | High Tech Industries                      |  |                 | L + 5.25%(1.00% Floor) |  |              |  | 1/28/2022  |                     |  |   | 16,113           |  |  |              | 15,923 |   |                         |   | 16,113 |   |  |  | 2.11 |  
|Alpha Packaging Holdings,Inc.(2)(3)(4) (13)                                    |  | Containers, Packaging & Glass             |  |                 | L + 4.25%(1.00% Floor) |  |              |  | 5/12/2020  |                     |  |   | 11,322           |  |  |              | 11,313 |   |                         |   | 11,322 |   |  |  | 1.48 |  
|Anaren, Inc.(2) (3) (4) (13)                                                   |  | Telecommunications                        |  |                 | L + 4.50%(1.00% Floor) |  |              |  | 2/18/2021  |                     |  |   | 10,869           |  |  |              | 10,800 |   |                         |   | 10,869 |   |  |  | 1.42 |  
|Audax AAMP Holdings,Inc.(2) (3) (4)
(13)                                       |  | Durable Consumer Goods                    |  |                 | L + 6.00%(1.00% Floor) |  |              |  | 6/24/2017  |                     |  |   | 10,424           |  |  |              | 10,400 |   |                         |   | 10,348 |   |  |  | 1.35 |  
|BAART Programs, Inc.(2) (4) (16)                                               |  | Healthcare & Pharmaceuticals              |  |                 | L + 7.75%(0.00% Floor) |  |              |  | 10/9/2021  |                     |  |   | 7,406            |  |  |              | 7,355  |   |                         |   | 7,534  |   |  |  | 0.99 |  
|Brooks Equipment Company,LLC(2) (3) (4)
(13)                                   |  | Construction & Building                   |  |                 | L + 5.00%(1.00% Floor) |  |              |  | 8/29/2020  |                     |  |   | 6,694            |  |  |              | 6,657  |   |                         |   | 6,683  |   |  |  | 0.87 |  
|Capstone Logistics Acquisition,Inc.(2) (3) (4)
(13)                            |  | Transportation: Cargo                     |  |                 | L + 4.50%(1.00% Floor) |  |              |  | 10/7/2021  |                     |  |   | 19,478           |  |  |              | 19,337 |   |                         |   | 19,212 |   |  |  | 2.51 |  
|Captive Resources Midco,LLC(2) (3) (4) (13)
(15)                               |  | Banking, Finance, Insurance & Real Estate |  |                 | L + 5.75%(1.00% Floor) |  |              |  | 6/30/2020  |                     |  |   | 29,050           |  |  |              | 28,683 |   |                         |   | 29,009 |   |  |  | 3.80 |  
|Central Security Group,Inc.(2) (3) (4) (13)
(16)                               |  | Consumer Services                         |  |                 | L + 5.63%(1.00% Floor) |  |              |  | 10/6/2020  |                     |  |   | 28,658           |  |  |              | 28,300 |   |                         |   | 28,557 |   |  |  | 3.74 |  
|CIP Revolution Holdings,LLC(2) (3) (5) (15)                                    |  | Media: Advertising, Printing & Publishing |  |                 | L + 6.00%(1.00% Floor) |  |              |  | 8/19/2021  |                     |  |   | 16,500           |  |  |              | 16,325 |   |                         |   | 16,585 |   |  |  | 2.17 |  
|Colony HardwareCorporation(2) (3) (4)
(13)                                     |  | Construction & Building                   |  |                 | L + 6.00%(1.00% Floor) |  |              |  | 10/23/2021 |                     |  |   | 17,038           |  |  |              | 16,806 |   |                         |   | 17,038 |   |  |  | 2.23 |  
|Datapipe, Inc.(2) (3) (13) (16)                                                |  | Telecommunications                        |  |                 | L + 4.75%(1.00% Floor) |  |              |  | 3/15/2019  |                     |  |   | 9,750            |  |  |              | 9,666  |   |                         |   | 9,764  |   |  |  | 1.28 |  
|Dent Wizard InternationalCorporation(2) (3) (4)
(13) (16)                      |  | Automotive                                |  |                 | L + 4.75%(1.00% Floor) |  |              |  | 4/7/2020   |                     |  |   | 7,216            |  |  |              | 7,190  |   |                         |   | 7,216  |   |  |  | 0.94 |  
|Derm Growth Partners III, LLC (DermatologyAssociates)(2) (3) (4) (5) (13) (15) |  | Healthcare & Pharmaceuticals              |  |                 | L + 6.50%(1.00% Floor) |  |              |  | 5/31/2022  |                     |  |   | 32,929           |  |  |              | 32,393 |   |                         |   | 32,958 |   |  |  | 4.31 |  
|Dimensional Dental Management,LLC(2) (3) (5)
(12) (15)                         |  | Healthcare & Pharmaceuticals              |  |                 | L + 7.00%(1.00% Floor) |  |              |  | 2/12/2021  |                     |  |   | 18,000           |  |  |              | 17,601 |   |                         |   | 17,811 |   |  |  | 2.33 |  
|Dimora Brands, Inc. (fka TK USA Enterprises, Inc.)
(2) (3) (5) (15)            |  | Construction & Building                   |  |                 | L + 4.50%(1.00% Floor) |  |              |  | 4/4/2022   |                     |  |   |                 |  |  |              | (60    | ) |                         |   | (30    | ) |  |  | 0.00 |  
|Direct Travel, Inc.(2) (3) (4) (5) (13)
(15)                                   |  | Hotel, Gaming & Leisure                   |  |                 | L + 6.50%(1.00% Floor) |  |              |  | 12/1/2021  |                     |  |   | 12,842           |  |  |              | 12,420 |   |                         |   | 12,712 |   |  |  | 1.66 |  
|EIP Merger Sub, LLC (EvolveIP)(2) (3) (5)
(12)                                 |  | Telecommunications                        |  |                 | L + 6.25%(1.00% Floor) |  |              |  | 6/7/2021   |                     |  |   | 23,750           |  |  |              | 23,098 |   |                         |   | 23,242 |   |  |  | 3.04 |  
|Emerging Markets Communications,LLC(2) (3) (4)
(8) (13)                        |  | Telecommunications                        |  |                 | L + 5.75%(1.00% Floor) |  |              |  | 7/1/2021   |                     |  |   | 17,730           |  |  |              | 16,299 |   |                         |   | 17,730 |   |  |  | 2.32 |  
|EP Minerals, LLC(2) (3) (4) (13)                                               |  | Metals & Mining                           |  |                 | L + 4.50%(1.00% Floor) |  |              |  | 8/20/2020  |                     |  |   | 10,264           |  |  |              | 10,232 |   |                         |   | 10,259 |   |  |  | 1.34 |  
|FCX Holdings Corp.(2) (3) (4) (13)
(16)                                        |  | Capital Equipment                         |  |                 | L + 4.50%(1.00% Floor) |  |              |  | 8/4/2020   |                     |  |   | 9,856            |  |  |              | 9,852  |   |                         |   | 9,856  |   |  |  | 1.29 |  
|Genex Holdings, Inc.(2) (3) (13)
(16)                                          |  | Banking, Finance, Insurance & Real Estate |  |                 | L + 4.25%(1.00% Floor) |  |              |  | 5/30/2021  |                     |  |   | 4,200            |  |  |              | 4,187  |   |                         |   | 4,196  |   |  |  | 0.55 |  
|Global Software,LLC(2) (3) (4) (13)
(16)                                       |  | High Tech Industries                      |  |                 | L + 5.50%(1.00% Floor) |  |              |  | 5/2/2022   |                     |  |   | 16,163           |  |  |              | 15,880 |   |                         |   | 16,163 |   |  |  | 2.12 |  
|Green Energy Partners/StonewallLLC(2) (3) (5)
(13)                             |  | Energy: Electricity                       |  |                 | L + 5.50%(1.00% Floor) |  |              |  | 11/13/2021 |                     |  |   | 16,600           |  |  |              | 16,475 |   |                         |   | 16,598 |   |  |  | 2.17 |  
|Green Plains IILLC(2) (3) (4) (5) (13)
(15)                                    |  | Beverage, Food & Tobacco                  |  |                 | L + 7.00%(1.00% Floor) |  |              |  | 10/03/2022 |                     |  |   | 15,205           |  |  |              | 15,059 |   |                         |   | 15,379 |   |  |  | 2.01 |  



14



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of December 31, 2016

(dollar amounts in
thousands)



|                                                                        |  |                                           |  |                 |                         |  |              |  |            |                     |  |   |                  |  |  |              |        |  |                         |   |        |  |  |  |      |  
|----------------------------------------------------------------------- |  | ----------------------------------------- |  | --------------- | ----------------------- |  | ------------ |  | ---------- | ------------------- |  | - | ---------------- |  |  | ------------ | ------ |  | ----------------------- | - | ------ |  |  |  | ---- | -
|Investmentsnon-controlled/non-affiliated (1)                           |  | Industry                                  |  | InterestRate(2) |                         |  | MaturityDate |  |            | Par/PrincipalAmount |  |   | AmortizedCost(6) |  |  | FairValue(7) |        |  | Percentage ofNet Assets |  
|First Lien Debt (80.09%) (continued)                                    |  |                                           |  |                 |                         |  |              |  |            |                     |  |   |                  |  |  |              |        |  |                         |   |        |  |  |  |      |  
|Hummel Station LLC(2) (3) (5) (13)
(16)                                 |  | Energy: Electricity                       |  |                 | L + 6.00%(1.00% Floor)  |  |              |  | 10/27/2022 |                     |  | $ | 21,000           |  |  | $            | 20,308 |  |                         | $ | 20,160 |  |  |  | 2.64 | %
|Imagine! Print Solutions,LLC(2) (3) (4)
(13)                            |  | Media: Advertising, Printing & Publishing |  |                 | L + 6.00%(1.00% Floor)  |  |              |  | 3/30/2022  |                     |  |   | 18,461           |  |  |              | 18,213 |  |                         |   | 18,603 |  |  |  | 2.43 |  
|Imperial Bag & Paper Co.LLC(2) (3) (4)
(13) (16)                        |  | Forest Products & Paper                   |  |                 | L + 6.00%(1.00% Floor)  |  |              |  | 1/7/2022   |                     |  |   | 24,074           |  |  |              | 23,752 |  |                         |   | 23,924 |  |  |  | 3.13 |  
|Indra Holdings Corp. (TotesIsotoner)(2) (3) (5)
(13)                    |  | Non-durable Consumer Goods                |  |                 | L + 4.25%(1.00% Floor)  |  |              |  | 5/1/2021   |                     |  |   | 14,224           |  |  |              | 14,130 |  |                         |   | 10,553 |  |  |  | 1.38 |  
|International Medical Group,Inc.(2) (3) (5)
(12)                        |  | Banking, Finance, Insurance & Real Estate |  |                 | L + 6.50%(1.00% Floor)  |  |              |  | 10/30/2020 |                     |  |   | 30,000           |  |  |              | 29,505 |  |                         |   | 30,237 |  |  |  | 3.96 |  
|Jackson Hewitt Inc.(2) (3) (4)
(13)                                     |  | Retail                                    |  |                 | L + 7.00%(1.00% Floor)  |  |              |  | 7/30/2020  |                     |  |   | 8,758            |  |  |              | 8,625  |  |                         |   | 8,320  |  |  |  | 1.09 |  
|Metrogistics LLC(2) (3) (4) (5) (13)                                    |  | Transportation: Cargo                     |  |                 | L + 6.50%(1.00% Floor)  |  |              |  | 9/30/2022  |                     |  |   | 15,200           |  |  |              | 14,986 |  |                         |   | 15,094 |  |  |  | 1.98 |  
|MSX International, Inc.(2) (3) (4)
(13)                                 |  | Automotive                                |  |                 | L + 5.00%(1.00% Floor)  |  |              |  | 8/21/2020  |                     |  |   | 8,940            |  |  |              | 8,882  |  |                         |   | 8,940  |  |  |  | 1.17 |  
|National Technical Systems,Inc.(2) (3) (4) (13)
(15)                    |  | Aerospace & Defense                       |  |                 | L + 6.25%(1.00% Floor)  |  |              |  | 6/12/2021  |                     |  |   | 25,123           |  |  |              | 24,854 |  |                         |   | 23,927 |  |  |  | 3.13 |  
|NES Global Talent Finance US LLC (UnitedKingdom)(2) (3) (4) (8) (13)    |  | Energy: Oil & Gas                         |  |                 | L + 5.50%(1.00% Floor)  |  |              |  | 10/3/2019  |                     |  |   | 11,250           |  |  |              | 11,132 |  |                         |   | 10,911 |  |  |  | 1.43 |  
|OnCourse LearningCorporation(2) (3) (4) (5)
(13) (15) (16)              |  | Consumer Services                         |  |                 | L + 6.50%(1.00% Floor)  |  |              |  | 9/12/2021  |                     |  |   | 26,141           |  |  |              | 25,770 |  |                         |   | 26,220 |  |  |  | 3.43 |  
|Paradigm AcquisitionCorp.(2) (3) (4)
(13)                               |  | Business Services                         |  |                 | L + 5.00%(1.00% Floor)  |  |              |  | 6/2/2022   |                     |  |   | 23,246           |  |  |              | 22,963 |  |                         |   | 23,223 |  |  |  | 3.04 |  
|Pelican Products, Inc.(2) (3) (4)
(13)                                  |  | Containers, Packaging & Glass             |  |                 | L + 4.25%(1.00% Floor)  |  |              |  | 4/11/2020  |                     |  |   | 7,643            |  |  |              | 7,654  |  |                         |   | 7,593  |  |  |  | 0.99 |  
|Plano Molding Company,LLC(2) (3) (4) (5)
(13)                           |  | Hotel, Gaming & Leisure                   |  |                 | L + 7.00%(1.00% Floor)  |  |              |  | 5/12/2021  |                     |  |   | 18,163           |  |  |              | 18,030 |  |                         |   | 17,302 |  |  |  | 2.26 |  
|PPT Management Holdings,LLC(2) (3)
(5)                                  |  | Healthcare & Pharmaceuticals              |  |                 | L + 6.00%(1.00% Floor)  |  |              |  | 12/16/2022 |                     |  |   | 22,500           |  |  |              | 22,288 |  |                         |   | 22,426 |  |  |  | 2.93 |  
|Premier Senior Marketing,LLC(2) (3) (5)
(16)                            |  | Banking, Finance, Insurance & Real Estate |  |                 | L + 5.00%(1.00% Floor)  |  |              |  | 7/1/2022   |                     |  |   | 3,741            |  |  |              | 3,690  |  |                         |   | 3,741  |  |  |  | 0.49 |  
|Product Quest Manufacturing,LLC(2) (3) (4) (5)
(12)                     |  | Containers, Packaging & Glass             |  |                 | L + 5.75%(1.00% Floor)  |  |              |  | 9/9/2020   |                     |  |   | 28,000           |  |  |              | 27,565 |  |                         |   | 25,838 |  |  |  | 3.38 |  
|Prowler Acquisition Corp. (Pipeline Supply and Service, LLC)(2) (3) (4) |  | Wholesale                                 |  |                 | L + 4.50%(1.00% Floor)  |  |              |  | 1/28/2020  |                     |  |   | 10,798           |  |  |              | 10,739 |  |                         |   | 8,101  |  |  |  | 1.06 |  
|PSC Industrial HoldingsCorp(2) (3) (4)
(13)                             |  | Environmental Industries                  |  |                 | L + 4.75%(1.00% Floor)  |  |              |  | 12/5/2020  |                     |  |   | 11,760           |  |  |              | 11,679 |  |                         |   | 11,290 |  |  |  | 1.48 |  
|PSI Services LLC(2) (3) (4) (5) (12)
(16)                               |  | Business Services                         |  |                 | L + 6.75%(1.00% Floor)  |  |              |  | 2/27/2021  |                     |  |   | 32,705           |  |  |              | 32,022 |  |                         |   | 34,784 |  |  |  | 4.56 |  
|PT Intermediate Holdings III, LLC (Parts Town)(2)
(3) (4) (5) (13) (15) |  | Wholesale                                 |  |                 | L + 6.50%(1.00% Floor)  |  |              |  | 6/23/2022  |                     |  |   | 17,417           |  |  |              | 17,215 |  |                         |   | 17,563 |  |  |  | 2.30 |  
|QW Holding Corporation(Quala)(2) (3) (4) (5)
(13)                       |  | Environmental Industries                  |  |                 | L + 6.75%(1.00% Floor)  |  |              |  | 8/31/2022  |                     |  |   | 29,925           |  |  |              | 29,084 |  |                         |   | 30,009 |  |  |  | 3.93 |  
|Reliant Pro Rehab, LLC(2) (3) (5)
(12)                                  |  | Healthcare & Pharmaceuticals              |  |                 | L + 10.00%(1.00% Floor) |  |              |  | 12/29/2017 |                     |  |   | 22,331           |  |  |              | 22,024 |  |                         |   | 22,331 |  |  |  | 2.92 |  
|SolAero TechnologiesCorp.(2) (3) (4)
(5)                                |  | Telecommunications                        |  |                 | L + 5.25%(1.00% Floor)  |  |              |  | 12/10/2020 |                     |  |   | 19,677           |  |  |              | 19,541 |  |                         |   | 18,901 |  |  |  | 2.47 |  
|Superior Health Linens,LLC(2) (3) (4) (5) (13)
(15)                     |  | Business Services                         |  |                 | L + 6.50%(1.00% Floor)  |  |              |  | 9/30/2021  |                     |  |   | 19,206           |  |  |              | 18,891 |  |                         |   | 19,068 |  |  |  | 2.50 |  
|T2 Systems,Inc.(2) (3) (4) (5) (13) (15)
(16)                           |  | Transportation: Consumer                  |  |                 | L + 6.75%(1.00% Floor)  |  |              |  | 9/28/2022  |                     |  |   | 22,950           |  |  |              | 22,333 |  |                         |   | 23,208 |  |  |  | 3.04 |  
|T2 Systems Canada, Inc.(2) (3) (5)
(16)                                 |  | Transportation: Consumer                  |  |                 | L + 6.75%(1.00% Floor)  |  |              |  | 9/28/2022  |                     |  |   | 4,050            |  |  |              | 3,952  |  |                         |   | 4,090  |  |  |  | 0.54 |  



15



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of December 31, 2016

(dollar amounts in
thousands)



|                                                                                     |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |           |  |                        |   |           |  |  |  |        |  
|------------------------------------------------------------------------------------ |  | ----------------------------------------- |  | --------------- | ---------------------- |  | ------------ |  | ---------- | ------------------- |  | - | ---------------- |  |  | ------------ | --------- |  | ---------------------- | - | --------- |  |  |  | ------ | -
|Investmentsnon-controlled/non-affiliated (1)                                        |  | Industry                                  |  | InterestRate(2) |                        |  | MaturityDate |  |            | Par/PrincipalAmount |  |   | AmortizedCost(6) |  |  | FairValue(7) |           |  | Percentageof NetAssets |  
|First Lien Debt (80.09%) (continued)                                                 |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |           |  |                        |   |           |  |  |  |        |  
|Teaching Strategies, LLC(2) (3) (4)
(13)                                             |  | Media: Advertising, Printing & Publishing |  |                 | L + 5.50%(0.50% Floor) |  |              |  | 10/1/2019  |                     |  | $ | 13,369           |  |  | $            | 13,333    |  |                        | $ | 13,369    |  |  |  | 1.75   | %
|The Hilb Group, LLC(2) (3) (5) (12)
(15)                                             |  | Banking, Finance, Insurance & Real Estate |  |                 | L + 6.50%(1.00% Floor) |  |              |  | 6/24/2021  |                     |  |   | 29,682           |  |  |              | 29,113    |  |                        |   | 29,826    |  |  |  | 3.90   |  
|The SI Organization, Inc.(2) (3) (4)
(13)                                            |  | Aerospace & Defense                       |  |                 | L + 4.75%(1.00% Floor) |  |              |  | 11/23/2019 |                     |  |   | 8,574            |  |  |              | 8,527     |  |                        |   | 8,676     |  |  |  | 1.15   |  
|The Topps Company, Inc.(2) (3) (4)
(13)                                              |  | Non-durable Consumer Goods                |  |                 | L + 6.00%(1.25% Floor) |  |              |  | 10/2/2020  |                     |  |   | 18,707           |  |  |              | 18,629    |  |                        |   | 18,795    |  |  |  | 2.46   |  
|TruckPro, LLC(2) (3) (4) (13)
(16)                                                   |  | Automotive                                |  |                 | L + 5.00%(1.00% Floor) |  |              |  | 8/6/2018   |                     |  |   | 9,292            |  |  |              | 9,267     |  |                        |   | 9,262     |  |  |  | 1.21   |  
|Tweddle Group, Inc.(2) (3) (4) (13)                                                  |  | Media: Advertising, Printing & Publishing |  |                 | L + 6.00%(1.00% Floor) |  |              |  | 10/24/2022 |                     |  |   | 16,200           |  |  |              | 15,885    |  |                        |   | 16,114    |  |  |  | 2.11   |  
|TwentyEighty, Inc. (fka MillerHeiman, Inc.) (2)
(3) (5) (10) (13)                    |  | Business Services                         |  |                 | L + 6.00%(1.00% Floor) |  |              |  | 9/30/2019  |                     |  |   | 18,719           |  |  |              | 18,571    |  |                        |   | 7,628     |  |  |  | 1.00   |  
|U.S. Farathane, LLC(2) (3) (4)
(13)                                                  |  | Automotive                                |  |                 | L + 4.75%(1.00% Floor) |  |              |  | 12/23/2021 |                     |  |   | 1,925            |  |  |              | 1,895     |  |                        |   | 1,925     |  |  |  | 0.25   |  
|U.S. TelePacific HoldingsCorp.(2) (3)
(5)                                            |  | Telecommunications                        |  |                 | L + 8.50%(1.00% Floor) |  |              |  | 2/24/2021  |                     |  |   | 30,000           |  |  |              | 29,149    |  |                        |   | 29,853    |  |  |  | 3.91   |  
|Vetcor Professional Practices,LLC (2) (3) (4)
(5) (13) (15)                          |  | Consumer Services                         |  |                 | L + 6.25%(1.00% Floor) |  |              |  | 4/20/2021  |                     |  |   | 25,001           |  |  |              | 24,623    |  |                        |   | 25,164    |  |  |  | 3.29   |  
|Violin Finco S.A.R.L. (AlexanderMann Solutions) (UnitedKingdom) (2) (3) (4) (8) (13) |  | Business Services                         |  |                 | L + 4.75%(1.00% Floor) |  |              |  | 12/20/2019 |                     |  |   | 10,065           |  |  |              | 10,012    |  |                        |   | 10,058    |  |  |  | 1.32   |  
|Vistage Worldwide, Inc. (2) (3) (4) (13)
(16)                                        |  | Business Services                         |  |                 | L + 5.50%(1.00% Floor) |  |              |  | 8/19/2021  |                     |  |   | 28,757           |  |  |              | 28,524    |  |                        |   | 28,688    |  |  |  | 3.75   |  
|Vitera Healthcare Solutions,LLC (2) (3) (4)
(13)                                     |  | Healthcare & Pharmaceuticals              |  |                 | L + 5.00%(1.00% Floor) |  |              |  | 11/4/2020  |                     |  |   | 9,104            |  |  |              | 9,050     |  |                        |   | 9,078     |  |  |  | 1.19   |  
|Winchester ElectronicsCorporation (2) (3) (4)
(5) (13) (15)                          |  | Capital Equipment                         |  |                 | L + 6.50%(1.00% Floor) |  |              |  | 6/30/2022  |                     |  |   | 27,367           |  |  |              | 26,959    |  |                        |   | 27,460    |  |  |  | 3.59   |  
|Zest Holdings, LLC (2) (3) (4) (13)                                                  |  | Durable Consumer Goods                    |  |                 | L + 4.75%(1.00% Floor) |  |              |  | 8/16/2020  |                     |  |   | 9,530            |  |  |              | 9,530     |  |                        |   | 9,584     |  |  |  | 1.25   |  
|                                                                                     |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |           |  |                        |   |           |  |  |  |        |  
|First Lien Debt Total                                                                |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  | $            | 1,145,326 |  |                        | $ | 1,139,548 |  |  |  | 149.13 | %
|                                                                                     |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |           |  |                        |   |           |  |  |  |        |  
|Second Lien Debt (12.08%)                                                            |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |           |  |                        |   |           |  |  |  |        |  
|AF Borrower LLC (Accuvant)(2) (3)
(5)                                                |  | High Tech Industries                      |  |                 | L + 9.00%(1.00% Floor) |  |              |  | 1/30/2023  |                     |  | $ | 8,000            |  |  | $            | 7,934     |  |                        | $ | 8,000     |  |  |  | 1.05   | %
|AIM Group USA Inc.(2) (3) (5) (13)                                                   |  | Aerospace & Defense                       |  |                 | L + 9.00%(1.00% Floor) |  |              |  | 8/2/2022   |                     |  |   | 23,000           |  |  |              | 22,701    |  |                        |   | 23,196    |  |  |  | 3.04   |  
|AmeriLife Group, LLC (2) (3) (5)                                                     |  | Banking, Finance, Insurance & Real Estate |  |                 | L + 8.75%(1.00% Floor) |  |              |  | 1/10/2023  |                     |  |   | 20,000           |  |  |              | 19,656    |  |                        |   | 19,208    |  |  |  | 2.51   |  
|Argon Medical Devices,Inc.(2) (3) (4)
(5)                                            |  | Healthcare & Pharmaceuticals              |  |                 | L + 9.50%(1.00% Floor) |  |              |  | 6/23/2022  |                     |  |   | 24,000           |  |  |              | 23,363    |  |                        |   | 24,233    |  |  |  | 3.17   |  
|Berlin Packaging L.L.C.(2) (3) (5)
(13)                                              |  | Containers, Packaging & Glass             |  |                 | L + 6.75%(1.00% Floor) |  |              |  | 10/1/2022  |                     |  |   | 2,927            |  |  |              | 2,910     |  |                        |   | 2,953     |  |  |  | 0.39   |  
|Charter NEX US Holdings,Inc.(2) (3) (5)
(13)                                         |  | Chemicals, Plastics & Rubber              |  |                 | L + 8.25%(1.00% Floor) |  |              |  | 2/5/2023   |                     |  |   | 7,394            |  |  |              | 7,303     |  |                        |   | 7,468     |  |  |  | 0.98   |  
|Confie Seguros Holding IICo.(2) (3) (5)
(16)                                         |  | Banking, Finance, Insurance & Real Estate |  |                 | L + 9.00%(1.25% Floor) |  |              |  | 5/8/2019   |                     |  |   | 12,000           |  |  |              | 11,921    |  |                        |   | 11,918    |  |  |  | 1.56   |  
|Drew Marine Group Inc.(2) (3) (4) (5)
(13)                                           |  | Chemicals, Plastics & Rubber              |  |                 | L + 7.00%(1.00% Floor) |  |              |  | 5/19/2021  |                     |  |   | 12,500           |  |  |              | 12,481    |  |                        |   | 12,333    |  |  |  | 1.61   |  
|Genex Holdings, Inc.(2) (3) (5)                                                      |  | Banking, Finance, Insurance & Real Estate |  |                 | L + 7.75%(1.00% Floor) |  |              |  | 5/30/2022  |                     |  |   | 7,990            |  |  |              | 7,915     |  |                        |   | 7,978     |  |  |  | 1.04   |  



16



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of December 31, 2016

(dollar amounts in
thousands)



|                                                                       |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |         |  |                        |   |         |  |  |  |       |  
|---------------------------------------------------------------------- |  | ----------------------------------------- |  | --------------- | ---------------------- |  | ------------ |  | ---------- | ------------------- |  | - | ---------------- |  |  | ------------ | ------- |  | ---------------------- | - | ------- |  |  |  | ----- | -
|Investmentsnon-controlled/non-affiliated (1)                          |  | Industry                                  |  | InterestRate(2) |                        |  | MaturityDate |  |            | Par/PrincipalAmount |  |   | AmortizedCost(6) |  |  | FairValue(7) |         |  | Percentageof NetAssets |  
|Second Lien Debt (12.08%) (continued)                                  |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |         |  |                        |   |         |  |  |  |       |  
|Institutional ShareholderServices Inc.(2) (3)
(5) (13)                 |  | Banking, Finance, Insurance & Real Estate |  |                 | L + 8.50%(1.00% Floor) |  |              |  | 4/29/2022  |                     |  | $ | 12,500           |  |  | $            | 12,408  |  |                        | $ | 12,359  |  |  |  | 1.62  | %
|Jazz Acquisition, Inc.(Wencor) (2) (3) (5)
(13)                        |  | Aerospace & Defense                       |  |                 | L + 6.75%(1.00% Floor) |  |              |  | 6/19/2022  |                     |  |   | 6,700            |  |  |              | 6,677   |  |                        |   | 5,572   |  |  |  | 0.73  |  
|MRI Software, LLC(2) (3) (5)                                           |  | Software                                  |  |                 | L + 8.00%(1.00% Floor) |  |              |  | 6/23/2022  |                     |  |   | 11,250           |  |  |              | 11,110  |  |                        |   | 11,265  |  |  |  | 1.47  |  
|Power Stop, LLC(5) (9)                                                 |  | Automotive                                |  |                 | 11.00%                 |  |              |  | 5/29/2022  |                     |  |   | 10,000           |  |  |              | 9,831   |  |                        |   | 9,863   |  |  |  | 1.29  |  
|Prowler Acquisition Corp. (PipelineSupply and Service, LLC)(2) (3) (5) |  | Wholesale                                 |  |                 | L + 8.50%(1.00% Floor) |  |              |  | 7/28/2020  |                     |  |   | 3,000            |  |  |              | 2,960   |  |                        |   | 1,682   |  |  |  | 0.22  |  
|Vitera Healthcare Solutions,LLC(2) (3) (4)                             |  | Healthcare & Pharmaceuticals              |  |                 | L + 8.25%(1.00% Floor) |  |              |  | 11/4/2021  |                     |  |   | 2,000            |  |  |              | 1,979   |  |                        |   | 1,945   |  |  |  | 0.26  |  
|Watchfire Enterprises, Inc.(2) (3) (5)
(13)                            |  | Media: Advertising, Printing & Publishing |  |                 | L + 8.00%(1.00% Floor) |  |              |  | 10/2/2021  |                     |  |   | 7,000            |  |  |              | 6,932   |  |                        |   | 6,976   |  |  |  | 0.91  |  
|Zywave, Inc.(2) (3) (5)                                                |  | High Tech Industries                      |  |                 | L + 9.00%(1.00% Floor) |  |              |  | 11/17/2023 |                     |  |   | 4,950            |  |  |              | 4,879   |  |                        |   | 4,915   |  |  |  | 0.64  |  
|                                                                       |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |         |  |                        |   |         |  |  |  |       |  
|Second Lien Debt Total                                                 |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  | $            | 172,960 |  |                        | $ | 171,864 |  |  |  | 22.49 | %
|                                                                       |  |                                           |  |                 |                        |  |              |  |            |                     |  |   |                  |  |  |              |         |  |                        |   |         |  |  |  |       |  



|                                                    |  |          |                    |  |              |  |           |           |  |   |                   |  |  |               |       |  |                        |   |       |  |  |  |      |  
|--------------------------------------------------- |  | -------- | ------------------ |  | ------------ |  | --------- | --------- |  | - | ----------------- |  |  | ------------- | ----- |  | ---------------------- | - | ----- |  |  |  | ---- | -
|Investmentsnon-controlled/non-affiliated (1)       |  | Industry |                    |  | MaturityDate |  |           | ParAmount |  |   | AmortizedCost (6) |  |  | FairValue (7) |       |  | Percentageof NetAssets |  
|Structured Finance Obligations (0.37%) (5) (8)
(11) |  |          |                    |  |              |  |           |           |  |   |                   |  |  |               |       |  |                        |   |       |  |  |  |      |  
|1776 CLO I, Ltd., Subordinated Notes                |  |          | Structured Finance |  |              |  | 5/8/2020  |           |  | $ | 11,750            |  |  | $             | 6,739 |  |                        | $ | 2,761 |  |  |  | 0.36 | %
|Clydesdale CLO 2005, Ltd., Subordinated Notes       |  |          | Structured Finance |  |              |  | 12/6/2017 |           |  |   | 5,750             |  |  |               |      |  |                        |   | 10    |  |  |  | 0.00 |  
|MSIM Peconic Bay, Ltd., Subordinated Notes          |  |          | Structured Finance |  |              |  | 7/20/2019 |           |  |   | 4,500             |  |  |               | 63    |  |                        |   | 5     |  |  |  | 0.00 |  
|Nautique Funding Ltd., Income Notes                 |  |          | Structured Finance |  |              |  | 4/15/2020 |           |  |   | 5,000             |  |  |               | 2,437 |  |                        |   | 2,440 |  |  |  | 0.32 |  
|                                                    |  |          |                    |  |              |  |           |           |  |   |                   |  |  |               |       |  |                        |   |       |  |  |  |      |  
|Structured Finance Obligations Total                |  |          |                    |  |              |  |           |           |  |   |                   |  |  | $             | 9,239 |  |                        | $ | 5,216 |  |  |  | 0.68 | %
|                                                    |  |          |                    |  |              |  |           |           |  |   |                   |  |  |               |       |  |                        |   |       |  |  |  |      |  



|                                                       |  |          |                                          |  |              |  |           |      |  |   |               |  |  |                        |           |  |  |  |        |  
|------------------------------------------------------ |  | -------- | ---------------------------------------- |  | ------------ |  | --------- | ---- |  | - | ------------- |  |  | ---------------------- | --------- |  |  |  | ------ | -
|Investmentsnon-controlled/non-affiliated (1)          |  | Industry |                                          |  | Shares/Units |  |           | Cost |  |   | FairValue (7) |  |  | Percentageof NetAssets |          
|Equity Investments (0.46%) (5)                         |  |          |                                          |  |              |  |           |      |  |   |               |  |  |                        |           |  |  |  |        |  
|CIP Revolution Investments, LLC                        |  |          | Media: Advertising,Printing & Publishing |  |              |  | 30,000    |      |  | $ | 300           |  |  | $                      | 352       |  |  |  | 0.05   | %
|Derm Growth Partners III, LLC (Dermatology Associates) |  |          | Healthcare &Pharmaceuticals              |  |              |  | 1,000,000 |      |  |   | 1,000         |  |  |                        | 976       |  |  |  | 0.13   |  
|GS Holdco LLC (Global Software, LLC)                   |  |          | High Tech Industries                     |  |              |  | 1,000,000 |      |  |   | 1,001         |  |  |                        | 1,126     |  |  |  | 0.15   |  
|Power Stop Intermediate Holdings, LLC                  |  |          | Automotive                               |  |              |  | 7,150     |      |  |   | 715           |  |  |                        | 1,208     |  |  |  | 0.16   |  
|T2 Systems Parent Corporation                          |  |          | Transportation: Consumer                 |  |              |  | 555,556   |      |  |   | 556           |  |  |                        | 584       |  |  |  | 0.07   |  
|THG Acquisition, LLC (The Hilb Group, LLC)             |  |          | Banking, Finance,Insurance & Real Estate |  |              |  | 1,500,000 |      |  |   | 1,499         |  |  |                        | 2,228     |  |  |  | 0.29   |  
|                                                       |  |          |                                          |  |              |  |           |      |  |   |               |  |  |                        |           |  |  |  |        |  
|Equity Investments Total                               |  |          |                                          |  |              |  |           |      |  | $ | 5,071         |  |  | $                      | 6,474     |  |  |  | 0.85   | %
|                                                       |  |          |                                          |  |              |  |           |      |  |   |               |  |  |                        |           |  |  |  |        |  
|Total
investmentsnon-controlled/non-affiliated        |  |          |                                          |  |              |  |           |      |  | $ | 1,332,596     |  |  | $                      | 1,323,102 |  |  |  | 173.15 | %
|                                                       |  |          |                                          |  |              |  |           |      |  |   |               |  |  |                        |           |  |  |  |        |  



17



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of December 31, 2016

(dollar amounts in
thousands)



|                                                                                 |  |          |                 |  |                  |  |           |              |  |  |                       |  |  |      |        |  |               |   |           |                        |  |   |           |  |  |  |        |  
|-------------------------------------------------------------------------------- |  | -------- | --------------- |  | ---------------- |  | --------- | ------------ |  |  | --------------------- |  |  | ---- | ------ |  | ------------- | - | --------- | ---------------------- |  | - | --------- |  |  |  | ------ | -
|Investmentscontrolled/affiliated                                                |  | Industry |                 |  | InterestRate (2) |  |           | MaturityDate |  |  | ParAmount/LLCInterest |  |  | Cost |        |  | FairValue (7) |   |           | Percentageof NetAssets | 
|Investment Fund (7.00%)(8)                                                       |  |          |                 |  |                  |  |           |              |  |  |                       |  |  |      |        |  |               |   |           |                        |  |   |           |  |  |  |        |  
|Middle Market Credit Fund, LLC, Mezzanine Loan (2)
(5) (9) (14)                  |  |          | Investment Fund |  |                  |  | L + 9.50% |              |  |  | 6/24/2017             |  |  | $    | 62,384 |  |               | $ | 62,384    |                        |  | $ | 62,384    |  |  |  | 8.16   | %
|Middle Market Credit Fund, LLC, Subordinated Loan and Members Interest (5) (14) |  |          | Investment Fund |  |                  |  | 0.001     |              |  |  | 3/1/2021              |  |  |      | 35,001 |  |               |   | 35,001    |                        |  |   | 37,273    |  |  |  | 4.88   |  
|                                                                                 |  |          |                 |  |                  |  |           |              |  |  |                       |  |  |      |        |  |               |   |           |                        |  |   |           |  |  |  |        |  
|Investment Fund Total                                                            |  |          |                 |  |                  |  |           |              |  |  |                       |  |  |      |        |  |               | $ | 97,385    |                        |  | $ | 99,657    |  |  |  | 13.04  | %
|                                                                                 |  |          |                 |  |                  |  |           |              |  |  |                       |  |  |      |        |  |               |   |           |                        |  |   |           |  |  |  |        |  
|Total investmentscontrolled/affiliated                                          |  |          |                 |  |                  |  |           |              |  |  |                       |  |  |      |        |  |               | $ | 97,385    |                        |  | $ | 99,657    |  |  |  | 13.04  | %
|                                                                                 |  |          |                 |  |                  |  |           |              |  |  |                       |  |  |      |        |  |               |   |           |                        |  |   |           |  |  |  |        |  
|Total investments                                                                |  |          |                 |  |                  |  |           |              |  |  |                       |  |  |      |        |  |               | $ | 1,429,981 |                        |  | $ | 1,422,759 |  |  |  | 186.19 | %
|                                                                                 |  |          |                 |  |                  |  |           |              |  |  |                       |  |  |      |        |  |               |   |           |                        |  |   |           |  |  |  |        |  



|(1) | Unless otherwise indicated, issuers of debt and equity investments held by the Company are domiciled in the United States and issuers of structured finance obligations are domiciled in the Cayman Islands. Under the
Investment Company Act, the Company would be deemed to control a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the
portfolio company. As of December 31, 2016, the Company does not control any of these portfolio companies. Under the Investment Company Act, the Company would be deemed an affiliated person of a portfolio company if the
Company owns 5% or more of the portfolio companys outstanding voting securities. As of December 31, 2016, the Company is not an affiliated person of any of these portfolio companies.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Variable rate loans to the portfolio companies bear interest at a rate that may be determined by reference to either LIBOR or an alternate base rate (commonly based on the Federal Funds Rate or the U.S. Prime Rate),
which generally resets quarterly. For each such loan, the Company has provided the interest rate in effect as of December 31, 2016. As of December 31, 2016, all of our LIBOR loans were indexed to the
90-day LIBOR rate at 1.00%, except for those loans as indicated in Note 16 below.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Loan includes interest rate floor feature.
|--- | ------------------------------------------

|(4) | Denotes that all or a portion of the assets are owned by the SPV. The SPV has entered into the SPV Credit Facility. The lenders of the SPV Credit Facility have a first lien security interest in substantially all of the
assets of the SPV (see Note 6, Borrowings). Accordingly, such assets are not available to creditors of the Company or the 2015-1 Issuer, a wholly owned and consolidated subsidiary of the Company.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Denotes that all or a portion of the assets are owned by the Company. The Company has entered into the Credit Facility. The lenders of the Credit Facility have a first lien security interest in substantially all of the
portfolio investments held by the Company (see Note 6, Borrowings). Accordingly, such assets are not available to creditors of the SPV or the 2015-1 Issuer.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable,
on debt investments using the effective interest method. Equity tranche CLO fund investments, which are referred to as structured finance obligations, are recorded at amortized cost using the effective interest method.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | Fair value is determined in good faith by or under the direction of the Board of Directors of the Company (see Note 2, Significant Accounting Policies, and Note 3, Fair Value Measurements), pursuant to the
Companys valuation policy.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | The Company has determined the indicated investments are non-qualifying assets under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may
not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Companys total assets.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(9) | Represents a corporate mezzanine loan, which is subordinated to senior secured term loans of the portfolio company/investment fund.
|--- | -----------------------------------------------------------------------------------------------------------------------------------

|(10) | Loan was on non-accrual status as of December 31, 2016.
|---- | -------------------------------------------------------

|(11) | As of December 31, 2016, the Company has a greater than 25% but less than 50% equity or subordinated notes ownership interest in certain structured finance obligations. These investments have governing documents
that preclude the Company from controlling management of the entity and therefore the Company has determined that the issuer of the investment is not a controlled affiliate or a non-controlled affiliate
because the investments are not voting securities.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(12) | In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among
lenders as follows: Dimensional Dental Management, LLC (4.54%), EIP Merger Sub, LLC (Evolve IP) (3.84%), International Medical Group, Inc. (4.64%), Product Quest Manufacturing, LLC (3.54%), PSI Services LLC (4.40%), Reliant Pro Rehab, LLC (nil) and
The Hilb Group, LLC (3.96%). Pursuant to the agreement among lenders in respect of this loan, this investment represents a first lien/last out loan, which has a secondary priority behind the first lien/first out loan with respect to principal,
interest and other payments.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



18



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of December 31, 2016

(dollar amounts in
thousands)



|(13) | Denotes that all or a portion of the assets are owned by the 2015-1 Issuer and secure the notes issued in connection with a $400 million term debt securitization completed by
the Company on June 26, 2015 (see Note 7, 2015-1 Notes). Accordingly, such assets are not available to the creditors of the SPV or the Company.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(14) | Under the Investment Company Act, the Company is deemed to be an affiliated person of and control this investment fund because the Company owns more than 25% of the investment funds
outstanding voting securities and/or has the power to exercise control over management or policies of such investment fund. See Note 5, Middle Market Credit Fund, LLC, for more details.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(15) | As of December 31, 2016, the Company had the following unfunded commitments to fund delayed draw and revolving senior secured loans:
|---- | ------------------------------------------------------------------------------------------------------------------------------------



|                                                                           |  |      |              |  |           |  |      |                     |  |   |            |  |  |   |      |  
|-------------------------------------------------------------------------- |  | ---- | ------------ |  | --------- |  | ---- | ------------------- |  | - | ---------- |  |  | - | ---- | -
|Investmentsnon-controlled/non-affiliated                                  |  | Type |              |  | UnusedFee |  |      | Par/PrincipalAmount |  |   | Fair Value | 
|First Lien Debtunfunded delayed draw and revolving term loans commitments |  |      |              |  |           |  |      |                     |  |   |            |  |  |   |      |  
|Advanced Instruments, LLC                                                  |  |      | Revolver     |  |           |  | 0.50 | %                   |  | $ | 2,500      |  |  | $ | (25  | )
|Captive Resources Midco, LLC                                               |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 1,875      |  |  |   | (2   | )
|Captive Resources Midco, LLC                                               |  |      | Delayed Draw |  |           |  | 1.25 | %                   |  |   | 3,125      |  |  |   | (4   | )
|CIP Revolution Holdings, LLC                                               |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 1,331      |  |  |   | 6    |  
|CIP Revolution Holdings, LLC                                               |  |      | Delayed Draw |  |           |  | 0.75 | %                   |  |   | 1,331      |  |  |   | 6    |  
|Derm Growth Partners III, LLC (Dermatology Associates)                     |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 1,672      |  |  |   | 1    |  
|Derm Growth Partners III, LLC (Dermatology Associates)                     |  |      | Delayed Draw |  |           |  | 1.00 | %                   |  |   | 5,247      |  |  |   | 4    |  
|Dimensional Dental Management, LLC                                         |  |      | Delayed Draw |  |           |  | 1.00 | %                   |  |   | 2,507      |  |  |   | (23  | )
|Dimora Brands, Inc. (fka TK USA Enterprises, Inc.)                         |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 4,750      |  |  |   | (30  | )
|Direct Travel, Inc.                                                        |  |      | Delayed Draw |  |           |  | 1.00 | %                   |  |   | 9,658      |  |  |   | (56  | )
|Green Plains II LLC                                                        |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 1,352      |  |  |   | 14   |  
|National Technical Systems, Inc.                                           |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 2,031      |  |  |   | (102 | )
|National Technical Systems, Inc.                                           |  |      | Delayed Draw |  |           |  | 1.00 | %                   |  |   | 4,469      |  |  |   | (165 | )
|OnCourse Learning Corporation                                              |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 859        |  |  |   | 2    |  
|PT Intermediate Holdings III, LLC (Parts Town)                             |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 2,025      |  |  |   | 15   |  
|Superior Health Linens, LLC                                                |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 2,735      |  |  |   | (17  | )
|T2 Systems, Inc.                                                           |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 2,933      |  |  |   | 29   |  
|The Hilb Group, LLC                                                        |  |      | Delayed Draw |  |           |  | 1.00 | %                   |  |   | 3,810      |  |  |   | 16   |  
|Vetcor Professional Practices, LLC                                         |  |      | Delayed Draw |  |           |  | 1.00 | %                   |  |   | 3,057      |  |  |   | 18   |  
|Winchester Electronics Corporation                                         |  |      | Delayed Draw |  |           |  | 1.00 | %                   |  |   | 2,500      |  |  |   | 8    |  
|                                                                           |  |      |              |  |           |  |      |                     |  |   |            |  |  |   |      |  
|Total unfunded commitments                                                 |  |      |              |  |           |  |      |                     |  | $ | 59,767     |  |  | $ | (305 | )
|                                                                           |  |      |              |  |           |  |      |                     |  |   |            |  |  |   |      |  



|(16) | As of December 31, 2016, this LIBOR loan was indexed to the 30-day LIBOR rate at 0.77%.
|---- | ---------------------------------------------------------------------------------------

As of December 31, 2016, investments at fair value consisted of the following:



|                                                   |  |                |           |  |            |   |           |                 |  |  |        |  
|-------------------------------------------------- |  | -------------- | --------- |  | ---------- | - | --------- | --------------- |  |  | ------ | -
|Type% of Fair Value                               |  | Amortized Cost |           |  | Fair Value |   |           | % of Fair Value | 
|First Lien Debt                                    |  | $              | 1,145,326 |  |            | $ | 1,139,548 |                 |  |  | 80.09  | %
|Second Lien Debt                                   |  |                | 172,960   |  |            |   | 171,864   |                 |  |  | 12.08  |  
|Structured Finance Obligations                     |  |                | 9,239     |  |            |   | 5,216     |                 |  |  | 0.37   |  
|Equity Investments                                 |  |                | 5,071     |  |            |   | 6,474     |                 |  |  | 0.46   |  
|Investment Fund                                    |  |                | 97,385    |  |            |   | 99,657    |                 |  |  | 7.00   |  
|                                                   |  |                |           |  |            |   |           |                 |  |  |        |  
|Total                                              |  | $              | 1,429,981 |  |            | $ | 1,422,759 |                 |  |  | 100.00 | %
|                                                   |  |                |           |  |            |   |           |                 |  |  |        |  
|                                                   |  |                |          
|Type% of Fair Value of First and Second Lien Debt |  | Amortized Cost |           |  | Fair Value |   |           | % of Fair Value | 
|Floating Rate                                      |  | $              | 1,308,455 |  |            | $ | 1,301,549 |                 |  |  | 99.25  | %
|Fixed Rate                                         |  |                | 9,831     |  |            |   | 9,863     |                 |  |  | 0.75   |  
|                                                   |  |                |           |  |            |   |           |                 |  |  |        |  
|Total                                              |  | $              | 1,318,286 |  |            | $ | 1,311,412 |                 |  |  | 100.00 | %
|                                                   |  |                |           |  |            |   |           |                 |  |  |        |  



19



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##### Table of Contents

TCG BDC, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

As of December 31, 2016

(dollar amounts in
thousands)



The industry composition of investments at fair value as of December 31, 2016 was as
follows:



|                                          |  |                |           |  |            |   |           |                 |  |  |        |  
|----------------------------------------- |  | -------------- | --------- |  | ---------- | - | --------- | --------------- |  |  | ------ | -
|Industry                                  |  | Amortized Cost |           |  | Fair Value |   |           | % of Fair Value | 
|Aerospace & Defense                       |  | $              | 62,759    |  |            | $ | 61,371    |                 |  |  | 4.31   | %
|Automotive                                |  |                | 37,780    |  |            |   | 38,414    |                 |  |  | 2.70   |  
|Banking, Finance, Insurance & Real Estate |  |                | 148,577   |  |            |   | 150,700   |                 |  |  | 10.59  |  
|Beverage, Food & Tobacco                  |  |                | 15,059    |  |            |   | 15,379    |                 |  |  | 1.08   |  
|Business Services                         |  |                | 149,205   |  |            |   | 141,784   |                 |  |  | 9.97   |  
|Capital Equipment                         |  |                | 36,811    |  |            |   | 37,316    |                 |  |  | 2.62   |  
|Chemicals, Plastics & Rubber              |  |                | 19,784    |  |            |   | 19,801    |                 |  |  | 1.39   |  
|Construction & Building                   |  |                | 23,403    |  |            |   | 23,691    |                 |  |  | 1.67   |  
|Consumer Services                         |  |                | 78,693    |  |            |   | 79,941    |                 |  |  | 5.62   |  
|Containers, Packaging & Glass             |  |                | 49,442    |  |            |   | 47,706    |                 |  |  | 3.35   |  
|Durable Consumer Goods                    |  |                | 19,930    |  |            |   | 19,932    |                 |  |  | 1.04   |  
|Energy: Electricity                       |  |                | 36,783    |  |            |   | 36,758    |                 |  |  | 2.59   |  
|Energy: Oil & Gas                         |  |                | 11,132    |  |            |   | 10,911    |                 |  |  | 0.77   |  
|Environmental Industries                  |  |                | 40,763    |  |            |   | 41,299    |                 |  |  | 2.90   |  
|Forest Products & Paper                   |  |                | 23,752    |  |            |   | 23,924    |                 |  |  | 1.68   |  
|Healthcare & Pharmaceuticals              |  |                | 159,072   |  |            |   | 161,544   |                 |  |  | 11.36  |  
|High Tech Industries                      |  |                | 45,617    |  |            |   | 46,317    |                 |  |  | 3.26   |  
|Hotel, Gaming & Leisure                   |  |                | 30,450    |  |            |   | 30,014    |                 |  |  | 2.11   |  
|Investment Fund                           |  |                | 97,385    |  |            |   | 99,657    |                 |  |  | 7.00   |  
|Media: Advertising, Printing & Publishing |  |                | 70,988    |  |            |   | 71,999    |                 |  |  | 5.06   |  
|Metals & Mining                           |  |                | 10,232    |  |            |   | 10,259    |                 |  |  | 0.72   |  
|Non-durable Consumer Goods                |  |                | 32,759    |  |            |   | 29,348    |                 |  |  | 2.06   |  
|Retail                                    |  |                | 8,625     |  |            |   | 8,320     |                 |  |  | 0.58   |  
|ware                                      |  |                | 11,110    |  |            |   | 11,265    |                 |  |  | 0.79   |  
|Structured Finance                        |  |                | 9,239     |  |            |   | 5,216     |                 |  |  | 0.37   |  
|Telecommunications                        |  |                | 108,553   |  |            |   | 110,359   |                 |  |  | 7.76   |  
|Transportation: Cargo                     |  |                | 34,323    |  |            |   | 34,306    |                 |  |  | 2.41   |  
|Transportation: Consumer                  |  |                | 26,841    |  |            |   | 27,882    |                 |  |  | 1.96   |  
|Wholesale                                 |  |                | 30,914    |  |            |   | 27,346    |                 |  |  | 1.92   |  
|                                          |  |                |           |  |            |   |           |                 |  |  |        |  
|Total                                     |  | $              | 1,429,981 |  |            | $ | 1,422,759 |                 |  |  | 100.00 | %
|                                          |  |                |           |  |            |   |           |                 |  |  |        |  

The geographical composition of investments at fair value as of December 31, 2016 was as follows:



|               |  |                |           |  |            |   |           |                 |  |  |        |  
|-------------- |  | -------------- | --------- |  | ---------- | - | --------- | --------------- |  |  | ------ | -
|Geography      |  | Amortized Cost |           |  | Fair Value |   |           | % of Fair Value | 
|Cayman Islands |  | $              | 9,239     |  |            | $ | 5,216     |                 |  |  | 0.37   | %
|United Kingdom |  |                | 21,144    |  |            |   | 20,969    |                 |  |  | 1.47   |  
|United States  |  |                | 1,399,598 |  |            |   | 1,396,574 |                 |  |  | 98.16  |  
|               |  |                |           |  |            |   |           |                 |  |  |        |  
|Total          |  | $              | 1,429,981 |  |            | $ | 1,422,759 |                 |  |  | 100.00 | %
|               |  |                |           |  |            |   |           |                 |  |  |        |  

The accompanying notes are an integral part of these consolidated financial statements.



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##### Table of Contents

TCG BDC, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

As of March 31, 2017

(dollar amounts in
thousands, except per share data)

1. ORGANIZATION

TCG BDC, Inc. (together with its consolidated subsidiaries, we, us, our, TCG BDC or the
Company) is a Maryland corporation formed on February 8, 2012, and structured as an externally managed, non-diversified closed-end investment company.
The Company is managed by its investment adviser, Carlyle GMS Investment Management L.L.C. (CGMSIM or Investment Adviser), a wholly owned subsidiary of The Carlyle Group L.P. The Company has elected to be regulated as a
business development company (BDC) under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the Investment Company Act). In addition, the Company has elected to be
treated, and intends to continue to comply with the requirements to qualify annually, as a regulated investment company (RIC) under Subchapter M of the Internal Revenue Code of 1986, as amended (together with the rules and regulations
promulgated thereunder, the Code).

The Companys investment objective is to generate current income and capital
appreciation primarily through debt investments in U.S. middle market companies, which the Company defines as companies with approximately $10 million to $100 million of earnings before interest, taxes, depreciation and amortization
(EBITDA), which the Company believes is a useful proxy for cash flow. The Company seeks to achieve its investment objective primarily through direct originations of secured debt, including first lien senior secured loans (which may
include stand-alone first lien loans, first lien/last out loans and unitranche loans) and second lien senior secured loans (collectively, Middle Market Senior Loans), with the balance of our assets invested in higher yielding
investments (which may include unsecured debt, mezzanine debt and investments in equities). The Middle Market Senior Loans are generally made to private U.S. middle market companies that are, in many cases, controlled by private equity firms.
Depending on market conditions, the Company expects that between 70% and 80% of the value of its assets will be invested in Middle Market Senior Loans. The Company expects that the composition of its portfolio will change over time given the
Investment Advisers view on, among other things, the economic and credit environment (including with respect to interest rates) in which the Company is operating.

On May 2, 2013, the Company completed its initial closing of capital commitments (the Initial Closing) and subsequently
commenced substantial investment operations. If the Company has not consummated an initial public offering of its common stock that results in an unaffiliated public float of at least 15% of the aggregate capital commitments received prior to the
date of such initial public offering (a Qualified IPO) by May 2, 2018, then the Board of Directors of the Company (subject to any necessary stockholder approvals and applicable requirements of the Investment Company Act) will use
its best efforts to wind down and/or liquidate and dissolve.

The Company is an emerging growth company as defined in the
Jumpstart Our Business Startups Act of 2012. The Company will remain an emerging growth company for up to five years following an initial public offering, although if the market value of the common stock that is held by non-affiliates exceeds $700 million as of any June 30 before that time, the Company would cease to be an emerging growth company as of the following December 31.

The Company is externally managed by the Investment Adviser, an investment adviser registered under the Investment Advisers Act of 1940, as
amended. Carlyle GMS Finance Administration L.L.C. (the Administrator) provides the administrative services necessary for the Company to operate. Both the Investment Adviser and the Administrator are wholly owned subsidiaries of Carlyle
Investment Management L.L.C., a subsidiary of The Carlyle Group L.P. Carlyle refers to The Carlyle Group L.P. and its affiliates and its consolidated subsidiaries (other than portfolio companies of its affiliated funds), a global
alternative asset manager publicly traded on NASDAQ Global Select Market under the symbol CG. Refer to the sec.gov website for further information on Carlyle.



21



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##### Table of Contents

Effective March 15, 2017, the Company changed its name from Carlyle GMS Finance,
Inc. to TCG BDC, Inc.

TCG BDC SPV LLC (the SPV) is a Delaware limited liability company that was formed on
January 3, 2013. The SPV invests in first and second lien senior secured loans. The SPV is a wholly owned subsidiary of the Company and is consolidated in these consolidated financial statements commencing from the date of its formation,
January 3, 2013. Effective March 15, 2017, the SPV changed its name from Carlyle GMS Finance SPV LLC to TCG BDC SPV LLC.

On June 26, 2015, the Company completed a $400 million term debt securitization (the
2015-1 Debt Securitization). The notes offered in the 2015-1 Debt Securitization (the 2015-1 Notes) were
issued by Carlyle GMS Finance MM CLO 2015-1 LLC (the 2015-1 Issuer), a wholly owned and consolidated subsidiary of the Company, and are secured by a
diversified portfolio of the 2015-1 Issuer consisting primarily of first and second lien senior secured loans. Refer to Note 7 for details. The 2015-1 Issuer is
consolidated in these consolidated financial statements commencing from the date of its formation, May 8, 2015.

On February 29,
2016, the Company and Credit Partners USA LLC (Credit Partners) entered into an amended and restated limited liability company agreement, which was subsequently amended on June 24, 2016 (as amended, the Limited Liability
Company Agreement) to co-manage Middle Market Credit Fund, LLC (Credit Fund). Credit Fund primarily invests in first lien loans of middle market companies. Credit Fund is managed by a six-member board of managers, on which the Company and Credit Partners each have equal representation. The Company and Credit Partners each have 50% economic ownership of Credit Fund and have commitments to fund,
from time to time, capital of up to $400,000 each. Refer to Note 5, Middle Market Credit Fund, LLC, for details.

As a BDC, the Company is
required to comply with certain regulatory requirements. As part of these requirements, the Company must not acquire any assets other than qualifying assets specified in the Investment Company Act unless, at the time the acquisition is
made, at least 70% of its total assets are qualifying assets (with certain limited exceptions).

To qualify as a RIC, the Company must,
among other things, meet certain source-of-income and asset diversification requirements and timely distribute to its stockholders generally at least 90% of its
investment company taxable income, as defined by the Code, for each year. Pursuant to this election, the Company generally does not have to pay corporate level taxes on any income that it distributes to stockholders, provided that the Company
satisfies those requirements.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The
consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (US GAAP). The Company is an investment company for the purposes of
accounting and financial reporting in accordance with Accounting Standards Update (ASU) 2013-08, Financial ServicesInvestment Companies (ASU
2013-08): Amendments to the Scope, Measurement and Disclosure Requirements. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the SPV and
the 2015-1 Issuer. All significant intercompany balances and transactions have been eliminated. US GAAP for an investment company requires investments to be recorded at fair value. The carrying value for
all other assets and liabilities approximates their fair value.

The interim financial statements have been prepared in accordance with
US GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6 and 10 of Regulation S-X.



22



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##### Table of Contents

Accordingly, certain disclosures accompanying the annual consolidated financial statements prepared in accordance with US GAAP are omitted. In the opinion of management, all adjustments
considered necessary for the fair presentation of consolidated financial statements for the interim period presented have been included. These adjustments are of a normal, recurring nature. This Form 10-Q
should be read in conjunction with the Companys annual report on Form 10-K for the year ended December 31, 2016. The results of operations for the three month period ended March 31, 2017 are
not necessarily indicative of the operating results to be expected for the full year.

Use of Estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make assumptions and estimates that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Managements
estimates are based on historical experiences and other factors, including expectations of future events that management believes to be reasonable under the circumstances. It also requires management to exercise judgment in the process of applying
the Companys accounting policies. Assumptions and estimates regarding the valuation of investments and their resulting impact on base management and incentive fees involve a higher degree of judgment and complexity and these assumptions and
estimates may be significant to the consolidated financial statements. Actual results could differ from these estimates and such differences could be material.

Investments

Investment transactions are recorded
on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized
appreciation or depreciation previously recognized, and includes investments charged off during the period, net of recoveries. Net change in unrealized appreciation or depreciation on investments as presented in the accompanying Consolidated
Statements of Operations reflects the net change in the fair value of investments, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized. See Note 3 for further information about fair
value measurements.

Cash and Cash Equivalents

Cash and cash equivalents consist of demand deposits and highly liquid investments (e.g., money market funds, U.S. treasury notes) with
original maturities of three months or less. Cash equivalents are carried at amortized cost, which approximates fair value. The Companys cash and cash equivalents are held with two large financial institutions and cash held in such financial
institutions may, at times, exceed the Federal Deposit Insurance Corporation insured limit.

Revenue Recognition

Interest from Investments and Realized Gain/Loss on Investments

Interest income is recorded on an accrual basis and includes the accretion of discounts and amortization of premiums. Discounts from and
premiums to par value on debt investments purchased are accreted/amortized into interest income over the life of the respective security using the effective interest method. The amortized cost of debt investments represents the original cost,
including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion of discounts and amortization of premiums, if any. At time of exit, the realized gain or loss on an investment is the
difference between the amortized cost at time of exit and the cash received at exit using the specific identification method.

The Company
may have loans in its portfolio that contain payment-in-kind (PIK) provisions. PIK represents interest that is accrued and recorded as interest income at the
contractual rates, increases the loan



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principal on the respective capitalization dates, and is generally due at maturity. As of March 31, 2017, the fair value of the loan in the portfolio with PIK provisions was $8,861, which
represents approximately 0.6% of total investments at fair value. For the three month period ended March 31, 2017, there was no PIK interest accrued. As of December 31, 2016, no loans in the portfolio contained PIK provisions.

Interest income from investments in the equity class of collateralized loan obligation (CLO) funds, which are included
in structured finance obligations, is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows in accordance with Accounting Standards Codification (ASC) 325-40, Beneficial Interests in Securitized Financials Assets. The Company monitors the expected cash inflows from its CLO equity investments, including the expected residual payments and the effective yield
is determined and updated at least quarterly. In estimating these cash flows, there are a number of assumptions that are subject to uncertainties, including the amount and timing of principal payments which are impacted by prepayments, repurchases,
defaults, delinquencies and liquidations of or within the CLO funds. These uncertainties are difficult to predict and are subject to future events that could have impacted the Companys estimates if the information was known at the time. As a
result, actual results may differ significantly from these estimates.

Dividend Income

Dividend income from the investment fund is recorded on the record date for the investment fund to the extent that such amounts are payable by
the investment fund and are expected to be collected.

Other Income

Other income may include income such as consent, waiver, amendment, syndication and prepayment fees associated with the Companys
investment activities as well as any fees for managerial assistance services rendered by the Company to the portfolio companies. Such fees are recognized as income when earned or the services are rendered. The Company may receive fees for
guaranteeing the outstanding debt of a portfolio company. Such fees are amortized into other income over the life of the guarantee. The unamortized amount, if any, is included in other assets in the accompanying Consolidated Statements of Assets and
Liabilities. For the three month periods ended March 31, 2017 and 2016, the Company earned $2,536 and $999, respectively, in other income, primarily from syndication and prepayment fees.

Non-Accrual Income

Loans are generally placed on non-accrual status when principal or interest payments are past due 30
days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest
payments received on non-accrual loans may be recognized as income or applied to principal depending upon managements judgment regarding collectability.
Non-accrual loans are restored to accrual status when past due principal and interest are paid current and, in managements judgment, are likely to remain current. Management may not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection. As of March 31, 2017, the fair value of the loan in the portfolio on
non-accrual status was $8,858, which represents approximately 0.6% of total investments at fair value. The remaining first and second lien debt investments were performing and current on their interest
payments as of March 31, 2017. All first and second lien debt investments were performing and current on their interest payments as of March 31, 2016.

SPV Credit Facility, Credit Facility and 2015-1 Notes Related Costs, Expenses and Deferred Financing Costs (See
Note 6, Borrowings, and Note 7, 2015-1 Notes)

Interest expense and unused commitment fees
on the SPV Credit Facility and Credit Facility are recorded on an accrual basis. Unused commitment fees are included in credit facility fees in the accompanying Consolidated Statements of Operations.



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The SPV Credit Facility and Credit Facility are recorded at carrying value, which approximates
fair value.

Deferred financing costs include capitalized expenses related to the closing or amendments of the SPV Credit Facility and
Credit Facility. Amortization of deferred financing costs for each credit facility is computed on the straight-line basis over the respective term of each credit facility, except for a portion that was accelerated in connection with the amendment of
the SPV Credit Facility as described in Note 6. The unamortized balance of such costs is included in deferred financing costs in the accompanying Consolidated Statements of Assets and Liabilities. The amortization of such costs is included in credit
facility fees in the accompanying Consolidated Statements of Operations.

Debt issuance costs include capitalized expenses including
structuring and arrangement fees related to the offering of the 2015-1 Notes. Amortization of debt issuance costs for the 2015-1 Notes is computed on the effective yield
method over the term of the 2015-1 Notes. The unamortized balance of such costs is presented as a direct deduction to the carrying amount of the 2015-1 Notes in the
accompanying Consolidated Statements of Assets and Liabilities. The amortization of such costs is included in interest expense in the accompanying Consolidated Statements of Operations.

The 2015-1 Notes are recorded at carrying value, which approximates fair value.

Organization and Offering Costs

The Company agreed to reimburse the Investment Adviser for initial organization and offering costs incurred on behalf of the Company up to
$1,500. As of March 31, 2017 and December 31, 2016, $1,500 of organization and offering costs had been incurred by the Company and $57 of excess organization and offering costs had been incurred by the Investment Adviser since inception.
The $1,500 of incurred organization and offering costs are allocated to all stockholders based on their respective capital commitment and are re-allocated amongst all stockholders at the time of each capital
drawdown subsequent to the Initial Closing. The Companys organization costs incurred are expensed and the offering costs are charged against equity when incurred.

Income Taxes

For federal income
tax purposes, the Company has elected to be treated as a RIC under the Code, and intends to make the required distributions to its stockholders as specified therein. In order to qualify as a RIC, the Company must meet certain minimum distribution, source-of-income and asset diversification requirements. If such requirements are met, then the Company is generally required to pay income taxes only on the portion of its
taxable income and gains it does not distribute.

The minimum distribution requirements applicable to RICs require the Company to
distribute to its stockholders at least 90% of its investment company taxable income (ICTI), as defined by the Code, each year. Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess
of current year distributions into the next tax year. Any such carryover ICTI must be distributed before the end of that next tax year through a dividend declared prior to filing the final tax return related to the year which generated such ICTI.

In addition, based on the excise distribution requirements, the Company is subject to a 4% nondeductible federal excise tax on
undistributed income unless the Company distributes in a timely manner an amount at least equal to the sum of (1) 98% of its ordinary income for each calendar year, (2) 98.2% of capital gain net income (both long-term and short-term) for
the one-year period ending October 31 in that calendar year and (3) any income realized, but not distributed, in the preceding year. For this purpose, however, any ordinary income or capital gain net
income retained by the Company that is subject to corporate income tax is considered to have been distributed. The Company intends to make sufficient distributions each taxable year to satisfy the excise distribution requirements.



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The Company evaluates tax positions taken or expected to be taken in the course of preparing its
consolidated financial statements to determine whether the tax positions are more-likely than not to be sustained by the applicable tax authority. All penalties and interest associated with income taxes, if any, are included in income
tax expense. The SPV and the 2015-1 Issuer are disregarded entities for tax purposes and are consolidated with the tax return of the Company.

Capital Calls and Dividends and Distributions to Common Stockholders

The Company records the shares issued in connection with capital calls as of the effective date of the capital call. To the extent that the
Company has taxable income available, the Company intends to make quarterly distributions to its common stockholders. Dividends and distributions to common stockholders are recorded on the record date. The amount to be distributed is determined by
the Board of Directors each quarter and is generally based upon the taxable earnings estimated by management and available cash. Net realized capital gains, if any, are generally distributed at least annually, although the Company may decide to
retain such capital gains for investment.

The Company has adopted a dividend reinvestment plan that provides for reinvestment of any
distributions on behalf of its stockholders, for those who have elected to participate in the plan. As a result of adopting such a plan, if the Board of Directors authorizes, and The Company declares, a cash dividend or distribution, the
stockholders who have elected to participate in the dividend reinvestment plan would have their cash dividends or distributions automatically reinvested in additional shares of the Companys common stock, rather than receiving cash. Prior to a
Qualified IPO, the Company intends to use primarily newly issued shares of its common stock to implement the plan issued at the net asset value per share most recently determined by the Board of Directors. After a Qualified IPO, the Company intends
to use primarily newly issued shares to implement the plan so long as the market value per share is equal to or greater than the net asset value per share as of the close of business on the relevant payment date for such dividend or distribution. If
the market value per share is less than the net asset value per share as of the close of business on the relevant payment date, the plan administrator would purchase the common stock on behalf of participants in the open market, unless the Company
instructs the plan administrator otherwise.

Functional Currency

The functional currency of the Company is the U.S. Dollar and all transactions were in U.S. Dollars.

3. FAIR VALUE MEASUREMENTS

The Company
applies fair value accounting in accordance with the terms of Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement(ASC 820). ASC 820 defines fair value as the
amount that would be exchanged to sell an asset or transfer a liability in an orderly transfer between market participants at the measurement date. The Company values securities/instruments traded in active markets on the measurement date by
multiplying the closing price of such traded securities/instruments by the quantity of shares or amount of the instrument held. The Company may also obtain quotes with respect to certain of its investments, such as its securities/instruments traded
in active markets and its liquid securities/instruments that are not traded in active markets, from pricing services, brokers, or counterparties (i.e., consensus pricing). When doing so, the Company determines whether the quote obtained
is sufficient according to US GAAP to determine the fair value of the security. The Company may use the quote obtained or alternative pricing sources may be utilized including valuation techniques typically utilized for illiquid
securities/instruments.

Securities/instruments that are illiquid or for which the pricing source does not provide a valuation or
methodology or provides a valuation or methodology that, in the judgment of the Investment Adviser or the Companys Board of Directors, does not represent fair value shall each be valued as of the measurement date



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using all techniques appropriate under the circumstances and for which sufficient data is available. These valuation techniques may vary by investment and include comparable public market
valuations, comparable precedent transaction valuations and/or discounted cash flow analyses. The process generally used to determine the applicable value is as follows: (i) the value of each portfolio company or investment is initially
reviewed by the investment professionals responsible for such portfolio company or investment and, for non-traded investments, a standardized template designed to approximate fair market value based on
observable market inputs, updated credit statistics and unobservable inputs is used to determine a preliminary value, which is also reviewed alongside consensus pricing, where available; (ii) preliminary valuation conclusions are documented and
reviewed by a valuation committee comprised of members of senior management; (iii) the Board of Directors engages a third-party valuation firm to provide positive assurance on portions of the Middle Market Senior Loans and equity investments
portfolio each quarter (such that each non-traded investment other than Credit Fund is reviewed by a third-party valuation firm at least once on a rolling twelve month basis) including a review of
managements preliminary valuation and conclusion on fair value; (iv) the Audit Committee of the Board of Directors (the Audit Committee) reviews the assessments of the Investment Adviser and the third-party valuation firm and
provides the Board of Directors with any recommendations with respect to changes to the fair value of each investment in the portfolio; and (v) the Board of Directors discusses the valuation recommendations of the Audit Committee and determines
the fair value of each investment in the portfolio in good faith based on the input of the Investment Adviser and, where applicable, the third-party valuation firm.

All factors that might materially impact the value of an investment are considered, including, but not limited to the assessment of the
following factors, as relevant:



| |  |  | the nature and realizable value of any collateral;
| | - |  | --------------------------------------------------



| |  |  | call features, put features and other relevant terms of debt;
| | - |  | -------------------------------------------------------------



| |  |  | the portfolio companys leverage and ability to make payments;
| | - |  | --------------------------------------------------------------



| |  |  | the portfolio companys public or private credit rating;
| | - |  | --------------------------------------------------------



| |  |  | the portfolio companys actual and expected earnings and discounted cash flow;
| | - |  | ------------------------------------------------------------------------------



| |  |  | prevailing interest rates and spreads for similar securities and expected volatility in future interest rates;
| | - |  | --------------------------------------------------------------------------------------------------------------



| |  |  | the markets in which the portfolio company does business and recent economic and/or market events; and
| | - |  | ------------------------------------------------------------------------------------------------------



| |  |  | comparisons to comparable transactions and publicly traded securities.
| | - |  | ----------------------------------------------------------------------

Investment performance
data utilized are the most recently available financial statements and compliance certificate received from the portfolio companies as of the measurement date which in many cases may reflect a lag in information.

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 the Companys investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the
investments existed, and it is reasonably possible that the difference could be material.

In addition, changes in the market environment
and other events that may occur over the life of the investments may cause the realized gains or losses on investments to be different from the net change in unrealized appreciation or depreciation currently reflected in the consolidated financial
statements as of March 31, 2017 and December 31, 2016.

US GAAP establishes a hierarchical disclosure framework which ranks
the level of observability of market price inputs used in measuring investments at fair value. The observability of inputs is impacted by a number of



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factors, including the type of investment and the characteristics specific to the investment and state of the marketplace, including the existence and transparency of transactions between market
participants. Investments with readily available quoted prices or for which fair value can be measured from quoted prices in active markets generally have a higher degree of market price observability and a lesser degree of judgment applied in
determining fair value.

Investments measured and reported at fair value are classified and disclosed based on the observability of inputs
used in determination of fair values, as follows:



| |  |  | Level 1inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date. The types of financial instruments in Level 1 generally include
unrestricted securities, including equities and derivatives, listed in active markets. The Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact
the quoted price.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 2inputs to the valuation methodology are either directly or indirectly observable as of the reporting date and are those other than quoted prices in active markets. The type of financial instruments in this
category generally includes less liquid and restricted securities listed in active markets, securities traded in other than active markets, government and agency securities, and certain
over-the-counter derivatives where the fair value is based on observable inputs.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 3inputs to the valuation methodology are unobservable and significant to overall fair value measurement. The inputs into the determination of fair value require significant management judgment or estimation.
Financial instruments that are in this category generally include investments in privately-held entities, CLOs, and certain over-the-counter derivatives where the fair
value is based on unobservable inputs.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In certain cases, the inputs used to measure fair value may fall into different
levels of the fair value hierarchy. In such cases, an investments level within the fair value hierarchy is based on the lowest level of input that is significant to the overall fair value measurement. The Investment Advisers assessment
of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.

Transfers between levels, if any, are recognized at the beginning of the quarter in which the transfers occur. For the three month periods
ended March 31, 2017 and 2016, there were no transfers between levels.



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The following tables summarize the Companys investments measured at fair value on a
recurring basis by the above fair value hierarchy levels as of March 31, 2017 and December 31, 2016:



|                                            |  |                |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|------------------------------------------- |  | -------------- | - |  | ------- | - | - | ------- |  | - | --------- |  |  | - | --------- | 
|                                            |  | March 31, 2017 |  
|                                            |  | Level 1        |   |  | Level 2 |   |   | Level 3 |  |   | Total     | 
|Assets                                      |  |                |   |  |         |   |   |         | 
|First Lien Debt                             |  | $              |  |  |         | $ |  |         |  | $ | 1,085,554 |  |  | $ | 1,085,554 | 
|Second Lien Debt                            |  |                |  |  |         |   |  |         |  |   | 161,643   |  |  |   | 161,643   | 
|Structured Finance Obligations              |  |                |  |  |         |   |  |         |  |   | 2,776     |  |  |   | 2,776     | 
|Equity Investments                          |  |                |  |  |         |   |  |         |  |   | 8,451     |  |  |   | 8,451     | 
|Investment Fund                             |  |                |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|Mezzanine Loan                              |  |                |  |  |         |   |  |         |  |   | 86,044    |  |  |   | 86,044    | 
|                                            |  |                |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|Subtotal                                    |  | $              |  |  |         | $ |  |         |  | $ | 1,344,468 |  |  | $ | 1,344,468 | 
|                                            |  |                |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|Investments measured at net asset value
(1) |  |                |   |  |         |   |   |         |  |   |           |  |  | $ | 48,077    | 
|                                            |  |                |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|Total                                       |  |                |   |  |         |   |   |         |  |   |           |  |  | $ | 1,392,545 | 
|                                            |  |                |   |  |         |   |   |         |  |   |           |  |  |   |           | 



|                                            |  |                   |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|------------------------------------------- |  | ----------------- | - |  | ------- | - | - | ------- |  | - | --------- |  |  | - | --------- | 
|                                            |  | December 31, 2016 |  
|                                            |  | Level 1           |   |  | Level 2 |   |   | Level 3 |  |   | Total     | 
|Assets                                      |  |                   |   |  |         |   |   |         |  |   |           | 
|First Lien Debt                             |  | $                 |  |  |         | $ |  |         |  | $ | 1,139,548 |  |  | $ | 1,139,548 | 
|Second Lien Debt                            |  |                   |  |  |         |   |  |         |  |   | 171,864   |  |  |   | 171,864   | 
|Structured Finance Obligations              |  |                   |  |  |         |   |  |         |  |   | 5,216     |  |  |   | 5,216     | 
|Equity Investments                          |  |                   |  |  |         |   |  |         |  |   | 6,474     |  |  |   | 6,474     | 
|Investment Fund                             |  |                   |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|Mezzanine Loan                              |  |                   |  |  |         |   |  |         |  |   | 62,384    |  |  |   | 62,384    | 
|                                            |  |                   |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|Subtotal                                    |  | $                 |  |  |         | $ |  |         |  | $ | 1,385,486 |  |  | $ | 1,385,486 | 
|                                            |  |                   |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|Investments measured at net asset value
(1) |  |                   |   |  |         |   |   |         |  |   |           |  |  | $ | 37,273    | 
|                                            |  |                   |   |  |         |   |   |         |  |   |           |  |  |   |           | 
|Total                                       |  |                   |   |  |         |   |   |         |  |   |           |  |  | $ | 1,422,759 | 
|                                            |  |                   |   |  |         |   |   |         |  |   |           |  |  |   |           | 



|(1) | Amount represents the Companys subordinated loan and members interest investments in Credit Fund. The fair value of these investments has been estimated using the net asset value of the Companys
ownership interests in Credit Fund.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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The changes in the Companys investments at fair value for which the Company has used
Level 3 inputs to determine fair value and net change in unrealized appreciation (depreciation) included in earnings for Level 3 investments still held are as follows:



|                                                                                                                                                                                                                                                                                            |  |                                                                 |           |   |                 |   |         |                              |  |   |                   |   |  |                               |       |  |       |   |         |   |  |   |           |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------- | --------- | - | --------------- | - | ------- | ---------------------------- |  | - | ----------------- | - |  | ----------------------------- | ----- |  | ----- | - | ------- | - |  | - | --------- | -
|                                                                                                                                                                                                                                                                                            |  | Financial AssetsFor the three month period ended March 31, 2017 |          
|                                                                                                                                                                                                                                                                                            |  | First LienDebt                                                  |           |   | SecondLien Debt |   |         | StructuredFinanceObligations |  |   | EquityInvestments |   |  | InvestmentFund -MezzanineLoan |       |  | Total |  
|Balance, beginning of period                                                                                                                                                                                                                                                                |  | $                                                               | 1,139,548 |   |                 | $ | 171,864 |                              |  | $ | 5,216             |   |  | $                             | 6,474 |  |       | $ | 62,384  |   |  | $ | 1,385,486 |  
|Purchases                                                                                                                                                                                                                                                                                   |  |                                                                 | 92,793    |   |                 |   | 1,782   |                              |  |   |                  |   |  |                               | 1,500 |  |       |   | 45,660  |   |  |   | 141,735   |  
|Sales                                                                                                                                                                                                                                                                                       |  |                                                                 | (24,723   | ) |                 |   | (2,978  | )                            |  |   |                  |   |  |                               |      |  |       |   |        |   |  |   | (27,701   | )
|Paydowns                                                                                                                                                                                                                                                                                    |  |                                                                 | (120,872  | ) |                 |   | (10,000 | )                            |  |   | (2,518            | ) |  |                               |      |  |       |   | (22,000 | ) |  |   | (155,390  | )
|Accretion of discount                                                                                                                                                                                                                                                                       |  |                                                                 | 3,425     |   |                 |   | 151     |                              |  |   |                  |   |  |                               |      |  |       |   |        |   |  |   | 3,576     |  
|Net realized gains (losses)                                                                                                                                                                                                                                                                 |  |                                                                 | (7,552    | ) |                 |   | (3      | )                            |  |   | (139              | ) |  |                               |      |  |       |   |        |   |  |   | (7,694    | )
|Net change in unrealized appreciation (depreciation)                                                                                                                                                                                                                                        |  |                                                                 | 2,935     |   |                 |   | 827     |                              |  |   | 217               |   |  |                               | 477   |  |       |   |        |   |  |   | 4,456     |  
|                                                                                                                                                                                                                                                                                            |  |                                                                 |           |   |                 |   |         |                              |  |   |                   |   |  |                               |       |  |       |   |         |   |  |   |           |  
|Balance, end of period                                                                                                                                                                                                                                                                      |  | $                                                               | 1,085,554 |   |                 | $ | 161,643 |                              |  | $ | 2,776             |   |  | $                             | 8,451 |  |       | $ | 86,044  |   |  | $ | 1,344,468 |  
|                                                                                                                                                                                                                                                                                            |  |                                                                 |           |   |                 |   |         |                              |  |   |                   |   |  |                               |       |  |       |   |         |   |  |   |           |  
|Net change in unrealized appreciation (depreciation) included in earnings related to investments
still held as of March 31, 2017 included in net change in unrealized appreciation (depreciation) on investments non-controlled/non-affiliated on the Consolidated
Statements of Operations |  | $                                                               | (3,472    | ) |                 | $ | 859     |                              |  | $ | 220               |   |  | $                             | 477   |  |       | $ |        |   |  | $ | (1,916    | )
|                                                                                                                                                                                                                                                                                            |  |                                                                 |           |   |                 |   |         |                              |  |   |                   |   |  |                               |       |  |       |   |         |   |  |   |           |  



|                                                                                                                                                                                                                                                                                            |  |                                                                 |         |   |                 |   |         |                              |  |   |                   |   |  |       |       |  |  |   |           |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------- | ------- | - | --------------- | - | ------- | ---------------------------- |  | - | ----------------- | - |  | ----- | ----- |  |  | - | --------- | -
|                                                                                                                                                                                                                                                                                            |  | Financial AssetsFor the three month period ended March 31, 2016 |        
|                                                                                                                                                                                                                                                                                            |  | First LienDebt                                                  |         |   | SecondLien Debt |   |         | StructuredFinanceObligations |  |   | EquityInvestments |   |  | Total |      
|Balance, beginning of period                                                                                                                                                                                                                                                                |  | $                                                               | 785,459 |   |                 | $ | 210,396 |                              |  | $ | 44,812            |   |  | $     | 2,424 |  |  | $ | 1,043,091 |  
|Purchases                                                                                                                                                                                                                                                                                   |  |                                                                 | 98,802  |   |                 |   | 33,488  |                              |  |   |                  |   |  |       |      |  |  |   | 132,290   |  
|Sales                                                                                                                                                                                                                                                                                       |  |                                                                 | (2,193  | ) |                 |   | (10,835 | )                            |  |   | (9,805            | ) |  |       |      |  |  |   | (22,833   | )
|Paydowns                                                                                                                                                                                                                                                                                    |  |                                                                 | (3,326  | ) |                 |   |        |                              |  |   |                  |   |  |       |      |  |  |   | (3,326    | )
|Accretion of discount                                                                                                                                                                                                                                                                       |  |                                                                 | 532     |   |                 |   | 97      |                              |  |   | (31               | ) |  |       |      |  |  |   | 598       |  
|Net realized gains (losses)                                                                                                                                                                                                                                                                 |  |                                                                 | 4       |   |                 |   |        |                              |  |   | (3,581            | ) |  |       |      |  |  |   | (3,577    | )
|Net change in unrealized appreciation (depreciation)                                                                                                                                                                                                                                        |  |                                                                 | (5,608  | ) |                 |   | (5,256  | )                            |  |   | (1,040            | ) |  |       | 371   |  |  |   | (11,533   | )
|                                                                                                                                                                                                                                                                                            |  |                                                                 |         |   |                 |   |         |                              |  |   |                   |   |  |       |       |  |  |   |           |  
|Balance, end of period                                                                                                                                                                                                                                                                      |  | $                                                               | 873,670 |   |                 | $ | 227,890 |                              |  | $ | 30,355            |   |  | $     | 2,795 |  |  | $ | 1,134,710 |  
|                                                                                                                                                                                                                                                                                            |  |                                                                 |         |   |                 |   |         |                              |  |   |                   |   |  |       |       |  |  |   |           |  
|Net change in unrealized appreciation (depreciation) included in earnings related to
investments still held as of March 31, 2016 included in net change in unrealized appreciation (depreciation) on investments non-controlled/non-affiliated on the
Consolidated Statements of Operations |  | $                                                               | (5,602  | ) |                 | $ | (5,256  | )                            |  | $ | (4,298            | ) |  | $     | 371   |  |  | $ | (14,785   | )
|                                                                                                                                                                                                                                                                                            |  |                                                                 |         |   |                 |   |         |                              |  |   |                   |   |  |       |       |  |  |   |           |  



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The Company generally uses the following framework when determining the fair value of investments
that are categorized as Level 3:

Investments in debt securities are initially evaluated to determine whether the enterprise value of
the portfolio company is greater than the applicable debt. The enterprise value of the portfolio company is estimated using a market approach and an income approach. The market approach utilizes market value (EBITDA) multiples of publicly traded
comparable companies and available precedent sales transactions of comparable companies. The Company carefully considers numerous factors when selecting the appropriate companies whose multiples are used to value its portfolio companies. These
factors include, but are not limited to, the type of organization, similarity to the business being valued, relevant risk factors, as well as size, profitability and growth expectations. The income approach typically uses a discounted cash flow
analysis of the portfolio company.

Investments in debt securities that do not have sufficient coverage through the enterprise value
analysis are valued based on an expected probability of default and discount recovery analysis.

Investments in debt securities with
sufficient coverage through the enterprise value analysis are generally valued using a discounted cash flow analysis of the underlying security. Projected cash flows in the discounted cash flow typically represent the relevant securitys
contractual interest, fees and principal payments plus the assumption of full principal recovery at the securitys expected maturity date. The discount rate to be used is determined using an average of two market-based methodologies.
Investments in debt securities may also be valued using consensus pricing.

Investments in structured finance obligations are generally
valued using a discounted cash flow and/or consensus pricing.

Investments in equities are generally valued using a market approach and/or
an income approach. The market approach utilizes EBITDA multiples of publicly traded comparable companies and available precedent sales transactions of comparable companies. The income approach typically uses a discounted cash flow analysis of the
portfolio company.

Investments in the subordinated loan and members interest of the investment fund are valued using the net asset
value of the Companys ownership interest in the investment fund and investments in the mezzanine loan of the investment fund are valued using discounted cash flow analysis with expected repayment rate of principal and interest.



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The following tables summarize the quantitative information related to the significant
unobservable inputs for Level 3 instruments which are carried at fair value as of March 31, 2017 and December 31, 2016:



|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|--------------------------------------------- |  | ----------------------------- | --------- |  | -------------------- | -------------------- | ------------------------------- | ------------------- | ----- |  | --------------- | - |  |  | ------ | - |  |  | ------ | -
|                                              |  | Fair Value as ofMarch 31,2017 |           |  | Valuation Techniques |                      | Significant
Unobservable Inputs |                     | Range |  |                 |   | 
|                                              |  |                               |           |  | Low                  |                      |                                 | High                |       |  | WeightedAverage |  
|Investments in First Lien Debt                |  | $                             | 1,010,923 |  |                      | Discounted Cash Flow |                                 | Discount Rate       |       |  | 4.13            | % |  |  | 16.25  | % |  |  | 8.01   | %
|                                              |  |                               | 72,386    |  |                      | Consensus Pricing    |                                 | Indicative Quotes   |       |  | 65.13           |   |  |  | 101.00 |   |  |  | 94.09  |  
|                                              |  |                               | 2,245     |  |                      | Income Approach      |                                 | Discount Rate       |       |  | 19.53           | % |  |  | 19.53  | % |  |  | 19.53  | %
|                                              |  |                               |           |  |                      | Market Approach      |                                 | Comparable Multiple |       |  | 4.06            | x |  |  | 4.51   | x |  |  | 4.28   | x
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total First Lien Debt                         |  |                               | 1,085,554 |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Investments in Second Lien Debt               |  |                               | 156,836   |  |                      | Discounted Cash Flow |                                 | Discount Rate       |       |  | 7.93            | % |  |  | 11.01  | % |  |  | 9.65   | %
|                                              |  |                               | 2,949     |  |                      | Consensus Pricing    |                                 | Indicative Quotes   |       |  | 100.75          |   |  |  | 100.75 |   |  |  | 100.75 |  
|                                              |  |                               | 1,858     |  |                      | Income Approach      |                                 | Discount Rate       |       |  | 10.68           | % |  |  | 10.68  | % |  |  | 10.68  | %
|                                              |  |                               |           |  |                      | Market Approach      |                                 | Comparable Multiple |       |  | 8.87            | x |  |  | 9.60x  |   |  |  | 9.24x  |  
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total Second Lien Debt                        |  |                               | 161,643   |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Investments in Structured Finance Obligations |  |                               | 2,776     |  |                      | Discounted Cash Flow |                                 | Discount Rate       |       |  | 22.00           | % |  |  | 22.00  | % |  |  | 22.00  | %
|                                              |  |                               |           |  |                      |                      |                                 | Default Rate        |       |  | 0.78            |   |  |  | 0.78   |   |  |  | 0.78   |  
|                                              |  |                               |           |  |                      |                      |                                 | Prepayment Rate     |       |  | 35.00           |   |  |  | 35.00  |   |  |  | 35.00  |  
|                                              |  |                               |           |  |                      |                      |                                 | Recovery Rate       |       |  | 65.00           |   |  |  | 65.00  |   |  |  | 65.00  |  
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total Structured Finance Obligations          |  |                               | 2,776     |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Investments in Equity                         |  |                               | 8,451     |  |                      | Income Approach      |                                 | Discount Rate       |       |  | 8.37            | % |  |  | 10.30  | % |  |  | 9.13   | %
|                                              |  |                               |           |  |                      | Market Approach      |                                 | Comparable Multiple |       |  | 7.55            | x |  |  | 14.52  | x |  |  | 10.92  | x
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total Equity Investments                      |  |                               | 8,451     |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Investments in Investment FundMezzanine Loan |  |                               | 86,044    |  |                      | Income Approach      |                                 | Repayment Rate      |       |  | 100.00          | % |  |  | 100.00 | % |  |  | 100.00 | %
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total Investment FundMezzanine Loan          |  |                               | 86,044    |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total Level 3 Investments                     |  | $                             | 1,344,468 |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                               |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  



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|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|--------------------------------------------- |  | -------------------------------- | --------- |  | -------------------- | -------------------- | ------------------------------- | ------------------- | ----- |  | --------------- | - |  |  | ------ | - |  |  | ------ | -
|                                              |  | Fair Value as ofDecember 31,2016 |           |  | Valuation Techniques |                      | Significant
Unobservable Inputs |                     | Range |  |                 |   | 
|                                              |  |                                  |           |  | Low                  |                      |                                 | High                |       |  | WeightedAverage |  
|Investments in First Lien Debt                |  | $                                | 986,695   |  |                      | Discounted Cash Flow |                                 | Discount Rate       |       |  | 4.50            | % |  |  | 16.33  | % |  |  | 7.94   | %
|                                              |  |                                  | 152,853   |  |                      | Consensus Pricing    |                                 | Indicative Quotes   |       |  | 40.75           |   |  |  | 106.36 |   |  |  | 97.29  |  
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total First Lien Debt                         |  |                                  | 1,139,548 |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Investments in Second Lien Debt               |  |                                  | 153,657   |  |                      | Discounted Cash Flow |                                 | Discount Rate       |       |  | 7.93            | % |  |  | 11.05  | % |  |  | 9.75   | %
|                                              |  |                                  | 16,525    |  |                      | Consensus Pricing    |                                 | Indicative Quotes   |       |  | 83.17           |   |  |  | 100.88 |   |  |  | 94.48  |  
|                                              |  |                                  | 1,682     |  |                      | Income Approach      |                                 | Discount Rate       |       |  | 15.32           | % |  |  | 15.32  | % |  |  | 15.32  | %
|                                              |  |                                  |           |  |                      | Market Approach      |                                 | Comparable Multiple |       |  | 8.01            | x |  |  | 8.68   | x |  |  | 8.34   | x
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total Second Lien Debt                        |  |                                  | 171,864   |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Investments in Structured Finance Obligations |  |                                  | 2,761     |  |                      | Discounted Cash Flow |                                 | Discount Rate       |       |  | 22.00           | % |  |  | 22.00  | % |  |  | 22.00  | %
|                                              |  |                                  |           |  |                      |                      |                                 | Default Rate        |       |  | 1.13            |   |  |  | 1.13   |   |  |  | 1.13   |  
|                                              |  |                                  |           |  |                      |                      |                                 | Prepayment Rate     |       |  | 35.00           |   |  |  | 35.00  |   |  |  | 35.00  |  
|                                              |  |                                  |           |  |                      |                      |                                 | Recovery Rate       |       |  | 65.00           |   |  |  | 65.00  |   |  |  | 65.00  |  
|                                              |  |                                  | 2,455     |  |                      | Consensus Pricing    |                                 | Indicative Quotes   |       |  | 0.10            |   |  |  | 48.79  |   |  |  | 48.50  |  
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total Structured Finance Obligations          |  |                                  | 5,216     |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Investments in Equity                         |  |                                  | 6,474     |  |                      | Income Approach      |                                 | Discount Rate       |       |  | 8.68            | % |  |  | 10.40  | % |  |  | 9.41   | %
|                                              |  |                                  |           |  |                      | Market Approach      |                                 | Comparable Multiple |       |  | 7.22            | x |  |  | 13.71  | x |  |  | 11.00  | x
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total Equity Investments                      |  |                                  | 6,474     |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Investments in Investment FundMezzanine Loan |  |                                  | 62,384    |  |                      | Income Approach      |                                 | Repayment Rate      |       |  | 100.00          | % |  |  | 100.00 | % |  |  | 100.00 | %
|Total Investment FundMezzanine Loan          |  |                                  | 62,384    |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|Total Level 3 Investments                     |  | $                                | 1,385,486 |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  
|                                              |  |                                  |           |  |                      |                      |                                 |                     |       |  |                 |   |  |  |        |   |  |  |        |  

The significant unobservable inputs used in the fair value measurement of the Companys investments in
first and second lien debt securities are discount rates, indicative quotes and comparable EBITDA multiples. Significant increases in discount rates would result in a significantly lower fair value measurement. Significant decreases in indicative
quotes or comparable EBITDA multiples in isolation may result in a significantly lower fair value measurement.

The significant
unobservable inputs used in the fair value measurement of the Companys investments in structured finance obligations are discount rates, default rates, prepayment rates, recovery rates and indicative quotes. Significant increases in discount
rates, default rates or prepayment rates in isolation would result in a significantly lower fair value measurement, while a significant increase in recovery rates in isolation would result in a significantly higher fair value. Significant decreases
in indicative quotes in isolation may result in a significantly lower fair value measurement.



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The significant unobservable inputs used in the fair value measurement of the Companys
investments in equities are discount rates and comparable EBITDA multiples. Significant increases in discount rates would result in a significantly lower fair value measurement. Significant decreases in comparable EBITDA multiples would result in a
significantly lower fair value measurement.

Financial instruments disclosed but not carried at fair value

The following table presents the carrying value and fair value of the Companys secured borrowings disclosed but not carried at fair value
as of March 31, 2017 and December 31, 2016:



|                   |  |                |         |  |                   |   |         |                |  |   |            |  |  |   |         | 
|------------------ |  | -------------- | ------- |  | ----------------- | - | ------- | -------------- |  | - | ---------- |  |  | - | ------- | 
|                   |  | March 31, 2017 |         |  | December 31, 2016 |  
|                   |  | Carrying Value |         |  | Fair Value        |   |         | Carrying Value |  |   | Fair Value | 
|Secured borrowings |  | $              | 390,608 |  |                   | $ | 390,608 |                |  | $ | 421,885    |  |  | $ | 421,885 | 
|                   |  |                |         |  |                   |   |         |                |  |   |            |  |  |   |         | 
|Total              |  | $              | 390,608 |  |                   | $ | 390,608 |                |  | $ | 421,885    |  |  | $ | 421,885 | 
|                   |  |                |         |  |                   |   |         |                |  |   |            |  |  |   |         | 

The carrying values of the secured borrowings approximate their respective fair values and are categorized as
Level 3 within the hierarchy. Secured borrowings are valued generally using discounted cash flow analysis. The significant unobservable inputs used in the fair value measurement of the Companys secured borrowings are discount rates.
Significant increases in discount rates would result in a significantly lower fair value measurement.

The following table represents the
carrying values (before debt issuance costs) and fair values of the Companys 2015-1 Notes disclosed but not carried at fair value as of March 31, 2017 and December 31, 2016:



|                         |  |                |         |  |                   |   |         |                |  |   |            |  |  |   |         | 
|------------------------ |  | -------------- | ------- |  | ----------------- | - | ------- | -------------- |  | - | ---------- |  |  | - | ------- | 
|                         |  | March 31, 2017 |         |  | December 31, 2016 |  
|                         |  | Carrying Value |         |  | Fair Value        |   |         | Carrying Value |  |   | Fair Value | 
|Aaa/AAA Class A-1A Notes |  | $              | 160,000 |  |                   | $ | 160,110 |                |  | $ | 160,000    |  |  | $ | 160,072 | 
|Aaa/AAA Class A-1B Notes |  |                | 40,000  |  |                   |   | 40,001  |                |  |   | 40,000     |  |  |   | 39,960  | 
|Aaa/AAA Class A-1C Notes |  |                | 27,000  |  |                   |   | 27,030  |                |  |   | 27,000     |  |  |   | 26,951  | 
|Aa2 Class A-2 Notes      |  |                | 46,000  |  |                   |   | 46,027  |                |  |   | 46,000     |  |  |   | 45,784  | 
|                         |  |                |         |  |                   |   |         |                |  |   |            |  |  |   |         | 
|Total                    |  | $              | 273,000 |  |                   | $ | 273,168 |                |  | $ | 273,000    |  |  | $ | 272,767 | 
|                         |  |                |         |  |                   |   |         |                |  |   |            |  |  |   |         | 

The fair value determination of the Companys 2015-1 Notes was
based on the market quotation(s) received from broker/dealer(s). These fair value measurements were based on significant inputs not observable and thus represent Level 3 measurements as defined in the accounting guidance for fair value
measurement.

The carrying value of other financial assets and liabilities approximates their fair value based on the short term nature of
these items.

4. RELATED PARTY TRANSACTIONS

Investment Advisory Agreement

On
April 3, 2013, the Companys Board of Directors, including a majority of the directors who are not interested persons as defined in Section 2(a)(19) of the Investment Company Act (the Independent Directors),
approved an investment advisory agreement (the Investment Advisory Agreement) between the Company and the Investment Adviser in accordance with, and on the basis of an evaluation satisfactory to such directors as required by, Section
15(c) of the Investment Company Act. The initial term of the Investment Advisory Agreement is two years from April 3, 2013 and, unless terminated earlier, the Investment Advisory Agreement will renew automatically for successive annual periods,
provided that such continuance is specifically approved at least annually by the vote of the Board of Directors and by the vote of a majority of the Independent



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Directors. On March 20, 2017, the Companys Board of Directors, including a majority of the Independent Directors, approved the continuance of the Investment Advisory Agreement for a
one year period. The Investment Advisory Agreement will automatically terminate in the event of an assignment and may be terminated by either party without penalty upon at least 60 days written notice to the other party. Subject to the overall
supervision of the Board of Directors, the Investment Adviser provides investment advisory services to the Company. For providing these services, the Investment Adviser receives fees from the Company consisting of two componentsa base
management fee and an incentive fee.

Prior to a Qualified IPO, the base management fee is calculated and payable quarterly in arrears at
an annual rate of 1.50% of the average daily gross assets of the Company for the period adjusted for share issuances or repurchases, excluding any cash and cash equivalents and including assets acquired through the incurrence of debt from use of the
SPV Credit Facility, Credit Facility and 2015-1 Notes (see Note 6, Borrowings, and Note 7, 2015-1 Notes). For purposes of this calculation, cash and cash equivalents
include any temporary investments in cash-equivalents, U.S. government securities and other high quality investment grade debt investments that mature in 12 months or less from the date of investment. Base management fees for any partial quarter are
prorated. The Investment Adviser waived its right to receive one-third (0.50%) of the 1.50% base management fee prior to a Qualified IPO. The fee waiver will terminate if and when a Qualified IPO has been
consummated. Any waived base management fees are not subject to recoupment by the Investment Adviser.

The incentive fee has two parts.
The first part is calculated and payable quarterly in arrears based on the pre-incentive fee net investment income for the immediately preceding calendar quarter. The second part is determined and payable in
arrears based on capital gains as of the end of each calendar year.

Pre-incentive fee net
investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees
that the Company receives from portfolio companies) accrued during the calendar quarter, minus the operating expenses accrued for the quarter (including the base management fee, expenses payable under the administration agreement, and any interest
expense or fees on any credit facilities or outstanding debt and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income does not
include, in the case of investments with a deferred interest feature (such as original issue discount (OID), debt instruments with pay-in-kind interest and
zero coupon securities), accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized
capital appreciation or depreciation.

Prior to any Qualified IPO of the Companys common stock,
pre-incentive fee net investment income, expressed as a rate of return on the average daily Hurdle Calculation Value (as defined below) throughout the immediately preceding calendar quarter, is compared to a
hurdle rate of 1.50% per quarter (6% annualized) or a catch-up of 1.875% per quarter (7.50% annualized), as applicable. Hurdle Calculation Value means, on any given
day, the sum of (x) the value of net assets as of the end of the calendar quarter immediately preceding such day plus (y) the aggregate amount of capital drawn from investors (or reinvested in the Company pursuant to a dividend
reinvestment plan) from the beginning of the current quarter to such day minus (z) the aggregate amount of distributions (including share repurchases) made by the Company from the beginning of the current quarter to such day, but only to the
extent such distributions were not declared and accounted for on the books and records in a previous quarter.

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



| |  |  | no incentive fee based on pre-incentive fee net investment income in any calendar quarter in which its pre-incentive fee net investment
income does not exceed the hurdle rate of 1.50%;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | 100% of 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 1.875% in any calendar
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | quarter (7.50% annualized). The Company refers to this portion of the pre-incentive fee net investment income (which exceeds the hurdle rate but is less
than 1.875%) as the catch-up. The catch-up is meant to provide the Investment Adviser with approximately 20% of the Companys pre-incentive fee net investment income as if a hurdle rate did not apply if this net investment income exceeds 1.875% in any calendar quarter; and
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | 20% of the amount of pre-incentive fee net investment income, if any, that exceeds 1.875% in any calendar quarter (7.50% annualized) will be payable to the Investment Adviser.
This reflects that once the hurdle rate is reached and the catch-up is achieved, 20% of all pre-incentive fee investment income thereafter is allocated to the Investment
Adviser.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year (or
upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20% of realized capital gains, if any, on a cumulative basis from inception through the date of determination, computed net of all realized capital losses
on a cumulative basis and unrealized capital depreciation, less the aggregate amount of any previously paid capital gain incentive fees, provided that, the incentive fee determined at the end of the first calendar year of operations may be
calculated for a period of shorter than twelve calendar months to take into account any realized capital gains computed net of all realized capital losses on a cumulative basis and unrealized capital depreciation.

The Company will defer payment of any incentive fee otherwise earned by the Investment Adviser if, during the most recent four full calendar
quarter periods (or, if less, the number of full calendar quarters completed since the initial drawdown of capital from the stockholders, Initial Drawdown) ending on or prior to the date such payment is to be made, the sum of
(a) the aggregate distributions to stockholders and (b) the change in net assets (defined as gross assets less indebtedness and before taking into account any incentive fees payable during the period) is less than 6.0% of net assets
(defined as gross assets less indebtedness) at the beginning of such period, provided, that such percentage will be appropriately prorated during the four full calendar quarters immediately following the Initial Drawdown. These calculations are
adjusted for any share issuances or repurchases. Any deferred incentive fees are carried over for payment in subsequent calculation periods. The Investment Adviser may earn an incentive fee under the Investment Advisory Agreement on the
Companys repurchase of debt issued by the Company at a gain.

For the three month periods ended March 31, 2017 and 2016, base
management fees were $3,417 and $2,760, respectively (net of waiver of $1,708 and $1,380, respectively), incentive fees related to pre-incentive fee net investment income were $4,777 and $2,990, respectively,
and there were no incentive fees related to realized capital gains. For the three month periods ended March 31, 2017 and 2016, there were no accrued capital gains incentive fees based upon the cumulative net realized and unrealized appreciation
(depreciation) as of March 31, 2017 and 2016, respectively. The accrual for any capital gains incentive fee under US GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period
or a reduction of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual.

As of March 31, 2017 and December 31, 2016, $11,764 and $8,157, respectively, was included in base management and incentive fees
payable in the accompanying Consolidated Statements of Assets and Liabilities.

On April 3, 2013, the Investment Adviser entered into
a personnel agreement with The Carlyle Group Employee Co., L.L.C. (Carlyle Employee Co.), an affiliate of the Investment Adviser, pursuant to which Carlyle Employee Co. provides the Investment Adviser with access to investment
professionals.

Administration Agreement

On April 3, 2013, the Companys Board of Directors approved an administration agreement (the Administration Agreement)
between the Company and the Administrator. Pursuant to the Administration



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Agreement, the Administrator provides services and receives reimbursements equal to an amount that reimburses the Administrator for its costs and expenses and the Companys allocable portion
of overhead incurred by the Administrator in performing its obligations under the Administration Agreement, including the Companys allocable portion of the compensation paid to or compensatory distributions received by the Companys
officers (including the Chief Compliance Officer and Chief Financial Officer) and respective staff who provide services to the Company, operations staff who provide services to the Company, and any internal audit staff, to the extent internal audit
performs a role in the Companys Sarbanes-Oxley Act internal control assessment. Reimbursement under the Administration Agreement occurs quarterly in arrears.

The initial term of the Administration Agreement is two years from April 3, 2013 and, unless terminated earlier, the Administration
Agreement will renew automatically for successive annual periods, provided that such continuance is specifically approved at least annually by (i) the vote of the Board of Directors or by a majority vote of the outstanding voting securities of
the Company and (ii) the vote of a majority of the Companys Independent Directors. On March 20, 2017, the Companys Board of Directors, including a majority of the Independent Directors, approved the continuance of the
Administration Agreement for a one year period. The Administration Agreement may not be assigned by a party without the consent of the other party and may be terminated by either party without penalty upon at least 60 days written notice to
the other party.

For the three month periods ended March 31, 2017 and 2016, the Company incurred $173 and $148, respectively, in
fees under the Administrative Agreement, which were included in administrative service fees in the accompanying Consolidated Statements of Operations. As of March 31, 2017 and December 31, 2016, $115 and $137, respectively, was unpaid and
included in administrative service fees payable in the accompanying Consolidated Statements of Assets and Liabilities.

Sub-Administration Agreements

On April 3, 2013, the Administrator entered into sub-administration agreements with Carlyle Employee Co. and CELF Advisors LLP (CELF) (the Carlyle Sub-Administration Agreements). Pursuant to the
Carlyle Sub-Administration Agreements, Carlyle Employee Co. and CELF provide the Administrator with access to personnel.

On April 3, 2013, the Administrator entered into a sub-administration agreement with State Street
Bank and Trust Company (State Street and, such agreement, the State Street Sub-Administration Agreement and, together with the Carlyle
Sub-Administration Agreements, the Sub-Administration Agreements). On March 11, 2015, the Companys Board of Directors, including a majority of the
Independent Directors, approved an amendment to the State Street Sub-Administration Agreement. The initial term of the State Street Sub-Administration Agreement ends on
April 1, 2017 and, unless terminated earlier, the State Street Sub-Administration Agreement will renew automatically for successive annual periods, provided that such continuance is specifically approved
at least annually by (i) the vote of the Board of Directors or by the vote of a majority of the outstanding voting securities of the Company and (ii) the vote of a majority of the Companys Independent Directors. The State Street Sub-Administration Agreement may be terminated upon at least 60 days written notice and without penalty by the vote of a majority of the outstanding securities of the Company, or by the vote of the Board of
Directors or by either party to the State Street Sub-Administration Agreement.

For the three
month periods ended March 31, 2017 and 2016, fees incurred in connection with the State Street Sub-Administration Agreement, which amounted to $160 and $140, respectively, were included in other general
and administrative in the accompanying Consolidated Statements of Operations. As of March 31, 2017 and December 31, 2016, $160 and $159, respectively, was unpaid and included in other accrued expenses and liabilities in the accompanying
Consolidated Statements of Assets and Liabilities.



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Placement Fees

On April 3, 2013, the Company entered into a placement fee arrangement with TCG Securities, L.L.C. (TCG), a licensed
broker-dealer and an affiliate of the Investment Adviser, which may require stockholders to pay a placement fee to TCG for TCGs services.

For the three month periods ended March 31, 2017 and 2016, TCG earned placement fees of $0 and $3, respectively, from the Companys
stockholders in connection with the issuance or sale of the Companys common stock.

Board of Directors

The Companys Board of Directors currently consists of five members, three of whom are Independent Directors. On April 3, 2013, the
Board of Directors established an Audit Committee consisting of its Independent Directors. The Board of Directors also established a Pricing Committee of the Board of Directors (the Pricing Committee) and may establish additional
committees in the future. For the three month periods ended March 31, 2017 and 2016, the Company incurred $103 and $120, respectively, in fees and expenses associated with its Independent Directors and the Audit Committee. As of March 31,
2017 and December 31, 2016, $0 was unpaid and included in other accrued expenses and liabilities in the accompanying Consolidated Statements of Assets and Liabilities. As of March 31, 2017 and December 31, 2016, current directors had
committed $821 in capital commitments to the Company.

Transactions

For the three month period ended March 31, 2017, the Company sold three investments to Credit Fund for proceeds of $30,743 and realized
gains of $177. See Note 5, Middle Market Credit Fund, LLC, for further information about Credit Fund.

5. MIDDLE MARKET CREDIT FUND, LLC

Overview

On February 29,
2016, the Company and Credit Partners entered into the Limited Liability Company Agreement to co-manage Credit Fund, an unconsolidated Delaware limited liability company. Credit Fund primarily invests in first
lien loans of middle market companies. Credit Fund is managed by a six-member board of managers, on which the Company and Credit Partners each have equal representation. Establishing a quorum for Credit
Funds board of managers requires at least four members to be present at a meeting, including at least two of the Companys representatives and two of Credit Partners representatives. The Company and Credit Partners each have 50%
economic ownership of Credit Fund and have commitments to fund, from time to time, capital of up to $400,000 each. Funding of such commitments generally requires the approval of the board of Credit Fund, including the board members appointed by the
Company. By virtue of its membership interest, the Company and Credit Partners each indirectly bear an allocable share of all expenses and other obligations of Credit Fund.

Together with Credit Partners, the Company co-invests through Credit Fund. Investment opportunities
for Credit Fund are sourced primarily by the Company and its affiliates. Portfolio and investment decisions with respect to Credit Fund must be unanimously approved by a quorum of Credit Funds investment committee consisting of an equal number
of representatives of the Company and Credit Partners. Therefore, although the Company owns more than 25% of the voting securities of Credit Fund, the Company does not believe that it has control over Credit Fund (other than for purposes of the
Investment Company Act). Middle Market Credit Fund SPV, LLC (the Credit Fund Sub), a Delaware limited liability company, was formed on April 5, 2016. Credit Fund Sub primarily invests in first lien loans of middle market companies.
Credit Fund Sub is a wholly owned subsidiary of Credit Fund and is consolidated in Credit Funds consolidated financial statements commencing from the date of its formation. Credit Fund follows the same Internal Risk Rating System as the
Company.



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Credit Fund, the Company and Credit Partners entered into an administration agreement with
Carlyle GMS Finance Administration L.L.C., the administrative agent of Credit Fund (in such capacity, the Administrative Agent), pursuant to which the Administrative Agent is delegated certain administrative and non-discretionary functions, is authorized to enter into sub-administration agreements at our expense with the approval of the board of managers of Credit Fund, and is
reimbursed by Credit Fund for its costs and expenses and Credit Funds allocable portion of overhead incurred by the Administrative Agent in performing its obligations thereunder

Selected Financial Data

Since
inception of Credit Fund and through March 31, 2017 and December 31, 2016, the Company and Credit Partners each made capital contributions of $1 in members equity and $45,500 and $35,000, respectively, in subordinated loans to Credit
Fund. As of March 31, 2017 and December 31, 2016, Credit Fund had net borrowings of $86,044 and $62,384, respectively, in mezzanine loans under a revolving credit facility with the Company (the Credit Fund Facility). As of
March 31, 2017 and December 31, 2016, Credit Fund had subordinated loans and members capital of $96,155 and $74,547, respectively. As of March 31, 2017 and December 31, 2016, the Companys ownership interest in such
subordinated loans and members capital was $48,077 and $37,273 respectively, and in such mezzanine loans was $86,044 and $62,384, respectively.

As of March 31, 2017 and December 31, 2016, Credit Fund held cash and cash equivalents totaling $10,533 and $6,103, respectively.

As of March 31, 2017 and December 31, 2016, Credit Fund had total investments at fair value of $558,694 and $437,829,
respectively, which was comprised of first lien senior secured loans and second lien senior secured loans to 35 and 28 portfolio companies, respectively. As of March 31, 2017 and December 31, 2016, no loans in Credit Funds portfolio
were on non-accrual status or contained PIK provisions. All investments in the portfolio were floating rate debt investments. The portfolio companies in Credit Fund are U.S. middle market companies in
industries similar to those in which the Company may invest directly. Additionally, as of March 31, 2017 and December 31, 2016, Credit Fund had commitments to fund various undrawn revolvers and delayed draw investments to its portfolio
companies totaling $32,012 and $30,361, respectively.

Below is a summary of Credit Funds portfolio, followed by a listing of the
loans in Credit Funds portfolio as of March 31, 2017 and December 31, 2016:



|                                                                            |  |                    |         |   |                       |   |         |  
|--------------------------------------------------------------------------- |  | ------------------ | ------- | - | --------------------- | - | ------- | -
|                                                                            |  | As ofMarch 31,2017 |         |   | As ofDecember 31,2016 |  
|Senior secured loans (1)                                                    |  | $                  | 560,196 |   |                       | $ | 439,086 |  
|Weighted average yields of senior secured loans based on amortized cost (2) |  |                    | 6.53    | % |                       |   | 6.47    | %
|Weighted average yields of senior secured loans based on fair value (2)     |  |                    | 6.46    | % |                       |   | 6.41    | %
|Number of portfolio companies in Credit Fund                                |  |                    | 35      |   |                       |   | 28      |  
|Average amount per portfolio company
(1)                                    |  | $                  | 16,006  |   |                       | $ | 15,682  |  



|(1) | At par/principal amount.
|--- | ------------------------

|(2) | Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of March 31, 2017 and December 31, 2016. Weighted average yield on debt and
income producing securities at fair value is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of OID and market discount earned on accruing debt included in such securities, divided by
(b) total first lien and second lien debt at fair value included in such securities. Weighted average yield on debt and income producing securities at amortized cost is computed as (a) the annual stated interest rate or yield earned plus
the net annual amortization of OID and market discount earned on accruing debt included in such securities, divided by (b) total first lien and second lien debt at amortized cost included in such securities. Actual yields earned over the life
of each investment could differ materially from the yields presented above.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|                                                                      |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |        |  |  |   |        | 
|--------------------------------------------------------------------- |  | -------- | --------------------------------------- |  | ------------ |  | ---------------------- | ------------ |  |  | ------------------- |  |  | ----------------- | ------ |  | ------------- | - | ------ |  |  | - | ------ | 
|Consolidated Schedule of Investments as of
March 31, 2017 (unaudited) | 
|Investments
(1)                                                       |  | Industry |                                         |  | InterestRate |  |                        | MaturityDate |  |  | Par/PrincipalAmount |  |  | AmortizedCost (5) |        |  | FairValue (6) |  
|First Lien Debt (99.42% of fair value)                                |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |        |  |  |   |        | 
|Advanced Instruments,LLC(2) (3) (4) (10) (11)                         |  |          | Healthcare &Pharmaceuticals             |  |              |  | L + 5.25%(1.00% Floor) |              |  |  | 10/31/2022          |  |  | $                 | 12,000 |  |               | $ | 11,867 |  |  | $ | 11,972 | 
|AM Conservation HoldingCorporation(2) (3)
(4)                         |  |          | Energy: Electricity                     |  |              |  | L + 4.75%(1.00% Floor) |              |  |  | 10/31/2022          |  |  |                   | 29,925 |  |               |   | 29,657 |  |  |   | 30,185 | 
|Anaren, Inc.(2) (3) (4)                                               |  |          | Telecommunications                      |  |              |  | L + 4.50%(1.00% Floor) |              |  |  | 2/18/2021           |  |  |                   | 6,963  |  |               |   | 6,935  |  |  |   | 6,963  | 
|Borchers, Inc.(2) (3) (4) (7) (10)
(11)                               |  |          | Chemicals,Plastics & Rubber             |  |              |  | L + 4.75%(1.00% Floor) |              |  |  | 1/13/2024           |  |  |                   | 8,142  |  |               |   | 8,096  |  |  |   | 8,170  | 
|Datapipe, Inc.(2) (3) (4) (11)                                        |  |          | Telecommunications                      |  |              |  | L + 4.75%(1.00% Floor) |              |  |  | 3/15/2019           |  |  |                   | 9,725  |  |               |   | 9,650  |  |  |   | 9,753  | 
|DBI Holding LLC(2) (3) (4)                                            |  |          | Business Services                       |  |              |  | L + 5.25%(1.00% Floor) |              |  |  | 8/1/2021            |  |  |                   | 19,950 |  |               |   | 19,774 |  |  |   | 19,754 | 
|Dent Wizard InternationalCorporation(2) (3) (4)
(11)                  |  |          | Automotive                              |  |              |  | L + 4.75%(1.00% Floor) |              |  |  | 4/7/2020            |  |  |                   | 15,000 |  |               |   | 14,861 |  |  |   | 14,984 | 
|Dimora Brands, Inc. (fka TK USAEnterprises,
Inc.)(2) (3) (4) (11)     |  |          | Construction &Building                  |  |              |  | L + 4.50%(1.00% Floor) |              |  |  | 4/4/2023            |  |  |                   | 19,800 |  |               |   | 19,539 |  |  |   | 19,743 | 
|Diversitech Corporation(2) (4) (10)                                   |  |          | Capital Equipment                       |  |              |  | P + 3.50%              |              |  |  | 11/19/2021          |  |  |                   | 14,766 |  |               |   | 14,589 |  |  |   | 14,766 | 
|DTI Holdco, Inc.(2) (3) (4) (7)                                       |  |          | High TechIndustries                     |  |              |  | L + 5.25%(1.00% Floor) |              |  |  | 9/30/2023           |  |  |                   | 19,900 |  |               |   | 19,704 |  |  |   | 19,639 | 
|EAG, Inc.(2) (3) (4) (11)                                             |  |          | Business Services                       |  |              |  | L + 4.25%(1.00% Floor) |              |  |  | 7/28/2018           |  |  |                   | 8,440  |  |               |   | 8,430  |  |  |   | 8,469  | 
|EIP Merger Sub, LLC(Evolve IP)(2) (3) (4) (8)
(11)                    |  |          | Telecommunications                      |  |              |  | L + 6.25%(1.00% Floor) |              |  |  | 6/7/2021            |  |  |                   | 22,894 |  |               |   | 22,280 |  |  |   | 22,539 | 
|EIP Merger Sub, LLC(Evolve IP)(2) (3) (4) (9)
(11)                    |  |          | Telecommunications                      |  |              |  | L + 6.25%(1.00% Floor) |              |  |  | 6/7/2021            |  |  |                   | 1,500  |  |               |   | 1,458  |  |  |   | 1,475  | 
|Empower Payments Acquisitions,Inc.(2) (3)
(7)                         |  |          | Media: Advertising,Printing &Publishing |  |              |  | L + 5.50%(1.00% Floor) |              |  |  | 11/30/2023          |  |  |                   | 17,456 |  |               |   | 17,115 |  |  |   | 17,411 | 
|Jensen Hughes, Inc.(2) (3) (4) (10)
(11)                              |  |          | Utilities: Electric                     |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 12/4/2021           |  |  |                   | 20,408 |  |               |   | 20,197 |  |  |   | 20,275 | 
|Kestra Financial, Inc.(2) (3) (4)                                     |  |          | Banking, Finance,Insurance & RealEstate |  |              |  | L + 5.25%(1.00% Floor) |              |  |  | 6/24/2022           |  |  |                   | 19,850 |  |               |   | 19,593 |  |  |   | 19,725 | 
|MSHC, Inc.(2) (3) (4) (10)                                            |  |          | Construction &Building                  |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 7/19/2021           |  |  |                   | 13,543 |  |               |   | 13,440 |  |  |   | 13,423 | 
|PAI Holdco, Inc.(Parts Authority)(2) (3)
(4)                          |  |          | Automotive                              |  |              |  | L + 4.75%(1.00% Floor) |              |  |  | 12/30/2022          |  |  |                   | 9,925  |  |               |   | 9,864  |  |  |   | 9,925  | 
|Paradigm Acquisition Corp.(2) (3)
(4)                                 |  |          | Business Services                       |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 6/2/2022            |  |  |                   | 11,970 |  |               |   | 11,874 |  |  |   | 11,970 | 
|Pasternack Enterprises, Inc.(Infinite RF)(2)
(3) (4)                  |  |          | Capital Equipment                       |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 5/27/2022           |  |  |                   | 11,910 |  |               |   | 11,817 |  |  |   | 11,885 | 
|PSI Services LLC(2) (3) (4) (7)
(10)                                  |  |          | Business Services                       |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 1/19/2023           |  |  |                   | 29,623 |  |               |   | 29,052 |  |  |   | 29,333 | 
|Q Holding Company(2) (3) (4)                                          |  |          | Automotive                              |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 12/18/2021          |  |  |                   | 13,929 |  |               |   | 13,798 |  |  |   | 13,958 | 
|QW Holding Corporation(Quala)(2) (3) (4) (7)
(10)                     |  |          | EnvironmentalIndustries                 |  |              |  | L + 6.75%(1.00% Floor) |              |  |  | 8/31/2022           |  |  |                   | 10,983 |  |               |   | 10,447 |  |  |   | 11,121 | 
|Ramundsen Public Sector,LLC(2) (3)
(4)                                |  |          | Sovereign & PublicFinance               |  |              |  | L + 4.25%(1.00% Floor) |              |  |  | 2/1/2024            |  |  |                   | 4,000  |  |               |   | 3,983  |  |  |   | 4,008  | 
|RelaDyne Inc.(2) (3) (4) (10)                                         |  |          | Wholesale                               |  |              |  | L + 5.25%(1.00% Floor) |              |  |  | 7/22/2022           |  |  |                   | 26,228 |  |               |   | 25,834 |  |  |   | 25,978 | 
|Restaurant Technologies,Inc.(2) (3)
(4)                               |  |          | Retail                                  |  |              |  | L + 4.75%(1.00% Floor) |              |  |  | 11/23/2022          |  |  |                   | 14,000 |  |               |   | 13,876 |  |  |   | 14,021 | 
|Systems Maintenance ServicesHolding, Inc.(2)
(3) (4) (11)             |  |          | High TechIndustries                     |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 10/30/2023          |  |  |                   | 24,439 |  |               |   | 24,266 |  |  |   | 24,561 | 
|T2 Systems Canada, Inc.(2) (3) (4)                                    |  |          | Transportation:Consumer                 |  |              |  | L + 6.75%(1.00% Floor) |              |  |  | 9/28/2022           |  |  |                   | 2,693  |  |               |   | 2,630  |  |  |   | 2,696  | 



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|                                                                      |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |         |  |  |   |         | 
|--------------------------------------------------------------------- |  | -------- | --------------------------------------- |  | ------------ |  | ---------------------- | ------------ |  |  | ------------------- |  |  | ----------------- | ------ |  | ------------- | - | ------- |  |  | - | ------- | 
|Consolidated Schedule of Investments as of
March 31, 2017 (unaudited) | 
|Investments
(1)                                                       |  | Industry |                                         |  | InterestRate |  |                        | MaturityDate |  |  | Par/PrincipalAmount |  |  | AmortizedCost (5) |        |  | FairValue (6) |  
|First Lien Debt (99.42% of fair value) (continued)                    |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |         |  |  |   |         | 
|T2 Systems, Inc.(2) (3) (4) (10)                                      |  |          | Transportation:Consumer                 |  |              |  | L + 6.75%(1.00% Floor) |              |  |  | 9/28/2022           |  |  | $                 | 15,262 |  |               | $ | 14,865  |  |  | $ | 15,282  | 
|Teaching Strategies,LLC(2) (3) (4)
(10)                               |  |          | Media: Advertising,Printing &Publishing |  |              |  | L + 4.75%(1.00% Floor) |              |  |  | 2/27/2023           |  |  |                   | 18,100 |  |               |   | 17,915  |  |  |   | 17,980  | 
|The Original Cakerie, Ltd.(Canada)(2) (3) (4)
(10) (11)               |  |          | Beverage, Food &Tobacco                 |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 7/20/2021           |  |  |                   | 6,992  |  |               |   | 6,932   |  |  |   | 6,992   | 
|The Original Cakerie, Co.(Canada)(2) (3) (4)
(11)                     |  |          | Beverage, Food &Tobacco                 |  |              |  | L + 5.50%(1.00% Floor) |              |  |  | 7/20/2021           |  |  |                   | 3,612  |  |               |   | 3,585   |  |  |   | 3,612   | 
|U.S. Acute Care Solutions,LLC(2) (3)
(4)                              |  |          | Healthcare &Pharmaceuticals             |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 5/15/2021           |  |  |                   | 26,334 |  |               |   | 26,099  |  |  |   | 26,275  | 
|U.S. Anesthesia Partners,Inc.(2) (3) (4)
(11)                         |  |          | Healthcare &Pharmaceuticals             |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 12/31/2019          |  |  |                   | 10,348 |  |               |   | 10,257  |  |  |   | 10,366  | 
|Vantage Specialty Chemicals,Inc.(2) (3) (4)
(11)                      |  |          | Chemicals, Plastics& Rubber             |  |              |  | L + 4.50%(1.00% Floor) |              |  |  | 2/5/2021            |  |  |                   | 17,865 |  |               |   | 17,748  |  |  |   | 17,775  | 
|WIRBCopernicus Group,Inc.(2) (3)
(4)                                 |  |          | Healthcare &Pharmaceuticals             |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 8/12/2022           |  |  |                   | 12,315 |  |               |   | 12,232  |  |  |   | 12,281  | 
|Zest Holdings, LLC(2) (3) (4)                                         |  |          | Durable ConsumerGoods                   |  |              |  | L + 4.75%(1.00% Floor) |              |  |  | 8/16/2020           |  |  |                   | 8,700  |  |               |   | 8,661   |  |  |   | 8,693   | 
|Zywave, Inc.(2) (3) (4) (7) (10)                                      |  |          | High TechIndustries                     |  |              |  | L + 5.00%(1.00% Floor) |              |  |  | 11/17/2022          |  |  |                   | 17,456 |  |               |   | 17,279  |  |  |   | 17,494  | 
|                                                                      |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |         |  |  |   |         | 
|First Lien Debt Total                                                 |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               | $ | 550,199 |  |  | $ | 555,452 | 
|                                                                      |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |         |  |  |   |         | 
|Second Lien Debt (0.58% of fair value)                                |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |         |  |  |   |         | 
|Ramundsen Public Sector,LLC(2) (3) (4)
(7)                            |  |          | Sovereign & PublicFinance               |  |              |  | L + 8.50%(1.00% Floor) |              |  |  | 1/31/2025           |  |  | $                 | 200    |  |               | $ | 198     |  |  | $ | 200     | 
|Vantage Specialty Chemicals,Inc. (2) (3) (4)
(11)                     |  |          | Chemicals, Plastics& Rubber             |  |              |  | L + 8.75%(1.00% Floor) |              |  |  | 2/5/2022            |  |  |                   | 2,000  |  |               |   | 1,969   |  |  |   | 1,992   | 
|Zywave, Inc.(2) (3) (4)                                               |  |          | High TechIndustries                     |  |              |  | L + 9.00%(1.00% Floor) |              |  |  | 11/17/2023          |  |  |                   | 1,050  |  |               |   | 1,035   |  |  |   | 1,050   | 
|                                                                      |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |         |  |  |   |         | 
|Second Lien Debt Total                                                |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               | $ | 3,202   |  |  | $ | 3,242   | 
|                                                                      |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |         |  |  |   |         | 
|Total Investments                                                     |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               | $ | 553,401 |  |  | $ | 558,694 | 
|                                                                      |  |          |                                         |  |              |  |                        |              |  |  |                     |  |  |                   |        |  |               |   |         |  |  |   |         | 



|(1) | Unless otherwise indicated, issuers of investments held by Credit Fund are domiciled in the United States. As of March 31, 2017, the geographical composition of investments as a percentage of fair value was 1.90%
in Canada and 98.10% in the United States.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Variable rate loans to the portfolio companies bear interest at a rate that may be determined by reference to either LIBOR or an alternate base rate (commonly based on the Federal Funds Rate or the U.S. Prime Rate
(P)), which generally resets quarterly. For each such loan, Credit Fund has provided the interest rate in effect as of March 31, 2017. As of March 31, 2017, all of Credit Funds LIBOR loans were indexed to the 90-day LIBOR rate at 1.15%, except for those loans as indicated in Note 11 below, and the U.S. Prime Rate loan was indexed at 4.00%.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Loan includes interest rate floor feature.
|--- | ------------------------------------------

|(4) | Denotes that all or a portion of the assets are owned by Credit Fund Sub. Credit Fund Sub has entered into a revolving credit facility (the Credit Fund Sub Facility). The lenders of the Credit Fund Sub
Facility have a first lien security interest in substantially all of the assets of Credit Fund Sub. Accordingly, such assets are not available to creditors of Credit Fund.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable,
on debt investments using the effective interest method.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Fair value is determined in good faith by or under the direction of the board of managers of Credit Fund, pursuant to Credit Funds valuation policy, which is substantially similar to the valuation policy of the
Company provided in Note 3, Fair Value Measurements.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | Denotes that all or a portion of the assets are owned by Credit Fund. Credit Fund has entered into the Credit Fund Facility. The lenders of the Credit Fund Facility have a first lien security interest in substantially
all of the assets of Credit Fund. Accordingly, such assets are not available to creditors of Credit Fund Sub.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | Credit Fund receives less than the stated interest rate of this loan as a result of an agreement among lenders.
The interest rate reduction is 1.25% on EIP Merger Sub, LLC (Evolve IP). Pursuant to the agreement among lenders in respect of this
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



41



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| | loan, this investment represents a first lien/first out loan, which has first priority ahead of the first lien/last out loan with respect to principal, interest and other payments.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(9) | In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among
lenders as follows: EIP Merger Sub, LLC (Evolve IP) (3.91%). Pursuant to the agreement among lenders in respect of this loan, this investment represents a first lien/last out loan, which has a secondary priority behind the first lien/first out loan
with respect to principal, interest and other payments.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(10) | As of March 31, 2017, Credit Fund had the following unfunded commitments to fund delayed draw and revolving senior secured loans:
|---- | ---------------------------------------------------------------------------------------------------------------------------------



|                                                                          |  |      |              |  |           |  |      |                     |  |   |            |  |  |   |     |  
|------------------------------------------------------------------------- |  | ---- | ------------ |  | --------- |  | ---- | ------------------- |  | - | ---------- |  |  | - | --- | -
|First Lien Debtunfunded delayed draw and revolving termloans
commitments |  | Type |              |  | UnusedFee |  |      | Par/PrincipalAmount |  |   | Fair Value | 
|Advanced Instruments, LLC                                                 |  |      | Revolver     |  |           |  | 0.50 | %                   |  | $ | 1,333      |  |  | $ | (3  | )
|Borchers, Inc.                                                            |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 1,858      |  |  |   | 5   |  
|Diversitech Corporation                                                   |  |      | Delayed Draw |  |           |  | 1.00 | %                   |  |   | 5,000      |  |  |   |    |  
|Jensen Hughes, Inc.                                                       |  |      | Delayed Draw |  |           |  | 0.50 | %                   |  |   | 1,461      |  |  |   | (8  | )
|Jensen Hughes, Inc.                                                       |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 2,000      |  |  |   | (11 | )
|MSHC, Inc.                                                                |  |      | Delayed Draw |  |           |  | 1.50 | %                   |  |   | 1,399      |  |  |   | (11 | )
|PSI Services LLC                                                          |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 377        |  |  |   | (4  | )
|QW Holding Corporation (Quala)                                            |  |      | Delayed Draw |  |           |  | 1.00 | %                   |  |   | 4,762      |  |  |   | 33  |  
|QW Holding Corporation (Quala)                                            |  |      | Revolver     |  |           |  | 1.00 | %                   |  |   | 4,234      |  |  |   | 29  |  
|RelaDyne Inc.                                                             |  |      | Delayed Draw |  |           |  | 0.50 | %                   |  |   | 135        |  |  |   | (1  | )
|RelaDyne Inc.                                                             |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 2,433      |  |  |   | (21 | )
|T2 Systems, Inc.                                                          |  |      | Revolver     |  |           |  | 1.00 | %                   |  |   | 1,955      |  |  |   | 2   |  
|Teaching Strategies, LLC                                                  |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 1,900      |  |  |   | (11 | )
|The Original Cakerie, Ltd. (Canada)                                       |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 1,665      |  |  |   |    |  
|Zywave, Inc.                                                              |  |      | Revolver     |  |           |  | 0.50 | %                   |  |   | 1,500      |  |  |   | 3   |  
|                                                                          |  |      |              |  |           |  |      |                     |  |   |            |  |  |   |     |  
|Total unfunded commitments                                                |  |      |              |  |           |  |      |                     |  | $ | 32,012     |  |  | $ | 2   |  
|                                                                          |  |      |              |  |           |  |      |                     |  |   |            |  |  |   |     |  



|(11) | As of March 31, 2017, this LIBOR loan was indexed to the 30-day LIBOR rate at 0.98%.
|---- | ------------------------------------------------------------------------------------



42



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|                                                                  |  |                                           |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |        |  |  |   |        | 
|----------------------------------------------------------------- |  | ----------------------------------------- |  | ---------------- | ---------------------- |  | ------------ |  | ---------- | ------------------- |  | - | ----------------- |  |  | ------------- | ------ |  |  | - | ------ | 
|Consolidated Schedule of Investments as of
December 31, 2016      | 
|Investments
(1)                                                   |  | Industry                                  |  | InterestRate (2) |                        |  | MaturityDate |  |            | Par/PrincipalAmount |  |   | AmortizedCost (5) |  |  | FairValue (6) |       
|First Lien Debt (99.31% of fair value)                            |  |                                           |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |        |  |  |   |        | 
|AM Conservation HoldingCorporation (2) (3)
(4)                    |  | Energy: Electricity                       |  |                  | L + 4.75%(1.00% Floor) |  |              |  | 10/31/2022 |                     |  | $ | 30,000            |  |  | $             | 29,721 |  |  | $ | 29,925 | 
|Datapipe, Inc. (2) (3) (4) (11)                                   |  | Telecommunications                        |  |                  | L + 4.75%(1.00% Floor) |  |              |  | 3/15/2019  |                     |  |   | 9,750             |  |  |               | 9,654  |  |  |   | 9,764  | 
|Dimora Brands, Inc. (fka TK USAEnterprises,
Inc.)(2) (3) (4) (11) |  | Construction & Building                   |  |                  | L + 4.50%(1.00% Floor) |  |              |  | 4/4/2023   |                     |  |   | 19,850            |  |  |               | 19,580 |  |  |   | 19,723 | 
|Diversitech Corporation (2) (4) (10)
(11)                         |  | Capital Equipment                         |  |                  | P + 3.50%              |  |              |  | 11/19/2021 |                     |  |   | 14,803            |  |  |               | 14,617 |  |  |   | 14,803 | 
|DTI Holdco, Inc. (2) (3) (4) (7)                                  |  | High Tech Industries                      |  |                  | L + 5.25%(1.00% Floor) |  |              |  | 9/30/2023  |                     |  |   | 19,950            |  |  |               | 19,751 |  |  |   | 19,651 | 
|DYK Prime Acquisition LLC (2) (3) (4)                             |  | Chemicals, Plastics & Rubber              |  |                  | L + 4.75%(1.00% Floor) |  |              |  | 4/1/2022   |                     |  |   | 5,775             |  |  |               | 5,735  |  |  |   | 5,775  | 
|EAG, Inc. (2) (3) (4) (11)                                        |  | Business Services                         |  |                  | L + 4.25%(1.00% Floor) |  |              |  | 7/28/2018  |                     |  |   | 8,713             |  |  |               | 8,686  |  |  |   | 8,720  | 
|EIP Merger Sub, LLC (EvolveIP) (2) (3) (4)
(8)                    |  | Telecommunications                        |  |                  | L + 6.25%(1.00% Floor) |  |              |  | 6/7/2021   |                     |  |   | 22,971            |  |  |               | 22,323 |  |  |   | 22,509 | 
|EIP Merger Sub, LLC (EvolveIP) (2) (3) (4)
(9)                    |  | Telecommunications                        |  |                  | L + 6.25%(1.00% Floor) |  |              |  | 6/7/2021   |                     |  |   | 1,500             |  |  |               | 1,455  |  |  |   | 1,468  | 
|Empower Payments Acquisitions,Inc. (2) (3)
(7)                    |  | Media: Advertising, Printing & Publishing |  |                  | L + 5.50%(1.00% Floor) |  |              |  | 11/30/2023 |                     |  |   | 17,500            |  |  |               | 17,154 |  |  |   | 17,279 | 
|Generation Brands Holdings,Inc. (2) (3) (4)                       |  | Durable Consumer Goods                    |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 6/10/2022  |                     |  |   | 19,900            |  |  |               | 19,712 |  |  |   | 20,099 | 
|Jensen Hughes, Inc. (2) (3) (4)
(10)                              |  | Utilities: Electric                       |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 12/4/2021  |                     |  |   | 20,409            |  |  |               | 20,188 |  |  |   | 20,327 | 
|Kestra Financial, Inc.(2) (3) (4)                                 |  | Banking, Finance, Insurance & Real Estate |  |                  | L + 5.25%(1.00% Floor) |  |              |  | 6/24/2022  |                     |  |   | 19,900            |  |  |               | 19,632 |  |  |   | 19,814 | 
|MSHC, Inc.(2) (3) (4) (10)                                        |  | Construction & Building                   |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 7/19/2021  |                     |  |   | 13,177            |  |  |               | 13,062 |  |  |   | 13,003 | 
|PAI Holdco, Inc. (PartsAuthority)(2)
(3) (4)                      |  | Automotive                                |  |                  | L + 4.75%(1.00% Floor) |  |              |  | 12/30/2022 |                     |  |   | 9,950             |  |  |               | 9,886  |  |  |   | 9,950  | 
|Pasternack Enterprises, Inc. (InfiniteRF)(2)
(3) (4)              |  | Capital Equipment                         |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 5/27/2022  |                     |  |   | 11,941            |  |  |               | 11,844 |  |  |   | 11,941 | 
|Q Holding Company (2) (3) (4)                                     |  | Automotive                                |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 12/18/2021 |                     |  |   | 13,964            |  |  |               | 13,828 |  |  |   | 13,941 | 
|QW Holding Corporation(Quala)(2) (3) (4) (7)
(10)                 |  | Environmental Industries                  |  |                  | L + 6.75%(1.00% Floor) |  |              |  | 8/31/2022  |                     |  |   | 8,975             |  |  |               | 8,413  |  |  |   | 9,030  | 
|Restaurant Technologies, Inc. (2) (3) (4)                         |  | Retail                                    |  |                  | L + 4.75%(1.00% Floor) |  |              |  | 11/23/2022 |                     |  |   | 23,514            |  |  |               | 23,117 |  |  |   | 23,443 | 
|RelaDyne Inc. (2) (3) (4) (10)                                    |  | Wholesale                                 |  |                  | L + 5.25%(1.00% Floor) |  |              |  | 7/22/2022  |                     |  |   | 14,000            |  |  |               | 13,871 |  |  |   | 13,969 | 
|Systems Maintenance ServicesHolding, Inc. (2)
(3) (4)             |  | High Tech Industries                      |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 10/30/2023 |                     |  |   | 12,000            |  |  |               | 11,885 |  |  |   | 12,001 | 
|T2 Systems Canada, Inc. (2) (3) (4)
(11)                          |  | Transportation: Consumer                  |  |                  | L + 6.75%(1.00% Floor) |  |              |  | 9/28/2022  |                     |  |   | 2,700             |  |  |               | 2,635  |  |  |   | 2,727  | 
|T2 Systems, Inc. (2) (3) (4) (10)
(11)                            |  | Transportation: Consumer                  |  |                  | L + 6.75%(1.00% Floor) |  |              |  | 9/28/2022  |                     |  |   | 15,300            |  |  |               | 14,888 |  |  |   | 15,473 | 
|The Original Cakerie, Ltd.(Canada) (2) (3) (4)
(10)               |  | Beverage, Food & Tobacco                  |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 7/20/2021  |                     |  |   | 7,009             |  |  |               | 6,946  |  |  |   | 7,009  | 
|The Original Cakerie, Co.(Canada) (2)
(3) (4)                     |  | Beverage, Food & Tobacco                  |  |                  | L + 5.50%(1.00% Floor) |  |              |  | 7/20/2021  |                     |  |   | 3,621             |  |  |               | 3,591  |  |  |   | 3,621  | 
|U.S. Acute Care Solutions, LLC (2) (3)
(4)                        |  | Health & Pharmaceuticals                  |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 5/15/2021  |                     |  |   | 26,400            |  |  |               | 26,154 |  |  |   | 26,336 | 
|U.S. Anesthesia Partners, Inc. (2) (3)
(4)                        |  | Health & Pharmaceuticals                  |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 12/31/2019 |                     |  |   | 10,374            |  |  |               | 10,275 |  |  |   | 10,362 | 
|Vantage Specialty Chemicals,Inc.(2) (3)
(4) (11)                  |  | Chemicals, Plastics & Rubber              |  |                  | L + 4.50%(1.00% Floor) |  |              |  | 2/5/2021   |                     |  |   | 17,910            |  |  |               | 17,786 |  |  |   | 17,903 | 



43



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|                                                             |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |         |  |  |   |         | 
|------------------------------------------------------------ |  | ---------------------------- |  | ---------------- | ---------------------- |  | ------------ |  | ---------- | ------------------- |  | - | ----------------- |  |  | ------------- | ------- |  |  | - | ------- | 
|Consolidated Schedule of Investments as of
December 31, 2016 | 
|Investments
(1)                                              |  | Industry                     |  | InterestRate (2) |                        |  | MaturityDate |  |            | Par/PrincipalAmount |  |   | AmortizedCost (5) |  |  | FairValue (6) |        
|First Lien Debt (99.31% of fair value) (continued)           |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |         |  |  |   |         | 
|WIRBCopernicus Group, Inc. (2) (3)
(4)                      |  | Health & Pharmaceuticals     |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 8/12/2022  |                     |  | $ | 7,980             |  |  | $             | 7,916   |  |  | $ | 8,050   | 
|Zest Holdings, LLC (2) (3) (4)                               |  | Durable Consumer Goods       |  |                  | L + 4.75%(1.00% Floor) |  |              |  | 8/16/2020  |                     |  |   | 8,700             |  |  |               | 8,658   |  |  |   | 8,749   | 
|Zywave, Inc. (2) (3) (4) (7) (10)                            |  | High Tech Industries         |  |                  | L + 5.00%(1.00% Floor) |  |              |  | 11/17/2022 |                     |  |   | 17,500            |  |  |               | 17,315  |  |  |   | 17,434  | 
|                                                             |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |         |  |  |   |         | 
|First Lien Debt Total                                        |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  | $             | 430,278 |  |  | $ | 434,799 | 
|                                                             |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |         |  |  |   |         | 
|Second Lien Debt (0.69% of fair value)                       |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |         |  |  |   |         | 
|Vantage Specialty Chemicals,Inc.(2) (3)
(4) (11)             |  | Chemicals, Plastics & Rubber |  |                  | L + 8.75%(1.00% Floor) |  |              |  | 2/5/2022   |                     |  | $ | 2,000             |  |  | $             | 1,960   |  |  | $ | 1,987   | 
|Zywave, Inc. (2) (3) (4)                                     |  | High Tech Industries         |  |                  | L + 9.00%(1.00% Floor) |  |              |  | 11/17/2023 |                     |  |   | 1,050             |  |  |               | 1,034   |  |  |   | 1,043   | 
|                                                             |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |         |  |  |   |         | 
|Second Lien Debt Total                                       |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  | $             | 2,994   |  |  | $ | 3,030   | 
|                                                             |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |         |  |  |   |         | 
|Total Investments                                            |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  | $             | 433,272 |  |  | $ | 437,829 | 
|                                                             |  |                              |  |                  |                        |  |              |  |            |                     |  |   |                   |  |  |               |         |  |  |   |         | 



|(1) | Unless otherwise indicated, issuers of investments held by Credit Fund are domiciled in the United States. As of December 31, 2016, the geographical composition of investments as a percentage of fair value was
2.43% in Canada and 97.57% in the United States.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Variable rate loans to the portfolio companies bear interest at a rate that may be determined by reference to either LIBOR (L) or an alternate base rate (commonly based on the Federal Funds Rate or the U.S.
Prime Rate (P)), which generally resets quarterly. For each such loan, Credit Fund has provided the interest rate in effect as of December 31, 2016. As of December 31, 2016, all of Credit Funds LIBOR loans were indexed to
the 90-day LIBOR rate at 1.00%, except for those loans as indicated in Note 11 below, and the U.S. Prime Rate loan was indexed at 3.75%.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Loan includes interest rate floor feature.
|--- | ------------------------------------------

|(4) | Denotes that all or a portion of the assets are owned by Credit Fund Sub. Credit Fund Sub has entered into a revolving credit facility (the Credit Fund Sub Facility). The lenders of the Credit Fund Sub
Facility have a first lien security interest in substantially all of the assets of Credit Fund Sub. Accordingly, such assets are not available to creditors of Credit Fund.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable,
on debt investments using the effective interest method.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Fair value is determined in good faith by or under the direction of the board of managers of Credit Fund, pursuant to Credit Funds valuation policy, which is substantially similar to the valuation policy of the
Company provided in Critical Accounting PoliciesFair Value Measurements.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | Denotes that all or a portion of the assets are owned by Credit Fund. Credit Fund has entered into the Credit Fund Facility. The lenders of the Credit Fund Facility have a first lien security interest in substantially
all of the assets of Credit Fund. Accordingly, such assets are not available to creditors of Credit Fund Sub.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | Credit Fund receives less than the stated interest rate of this loan as a result of an agreement among lenders. The interest rate reduction is 1.25% on EIP Merger Sub, LLC (Evolve IP). Pursuant to the agreement among
lenders in respect of this loan, this investment represents a first lien/first out loan, which has first priority ahead of the first lien/last out loan with respect to principal, interest and other payments.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(9) | In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among
lenders as follows: EIP Merger Sub, LLC (Evolve IP) (3.84%). Pursuant to the agreement among lenders in respect of this loan, this investment represents a first lien/last out loan, which has a secondary priority behind the first lien/first out loan
with respect to principal, interest and other payments.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



44



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##### Table of Contents

|(10) | As of December 31, 2016, Credit Fund had the following unfunded commitments to fund delayed draw and revolving senior secured loans:
|---- | ------------------------------------------------------------------------------------------------------------------------------------



|                                                                          |  |      |              |  |            |  |      |                     |  |   |           |  |  |   |     |  
|------------------------------------------------------------------------- |  | ---- | ------------ |  | ---------- |  | ---- | ------------------- |  | - | --------- |  |  | - | --- | -
|First Lien Debtunfunded delayed draw and revolving termloans
commitments |  | Type |              |  | Unused Fee |  |      | Par/PrincipalAmount |  |   | FairValue | 
|Diversitech Corporation                                                   |  |      | Delayed Draw |  |            |  | 1.00 | %                   |  | $ | 5,000     |  |  | $ |    |  
|Jensen Hughes, Inc.                                                       |  |      | Revolver     |  |            |  | 0.50 | %                   |  |   | 2,000     |  |  |   | (7  | )
|Jensen Hughes, Inc.                                                       |  |      | Delayed Draw |  |            |  | 0.50 | %                   |  |   | 1,461     |  |  |   | (5  | )
|MSHC, Inc.                                                                |  |      | Delayed Draw |  |            |  | 1.50 | %                   |  |   | 1,790     |  |  |   | (21 | )
|QW Holding Corporation (Quala)                                            |  |      | Revolver     |  |            |  | 1.00 | %                   |  |   | 5,086     |  |  |   | 14  |  
|QW Holding Corporation (Quala)                                            |  |      | Delayed Draw |  |            |  | 1.00 | %                   |  |   | 5,918     |  |  |   | 17  |  
|RelaDyne Inc.                                                             |  |      | Revolver     |  |            |  | 0.50 | %                   |  |   | 2,162     |  |  |   | (6  | )
|RelaDyne Inc.                                                             |  |      | Delayed Draw |  |            |  | 0.50 | %                   |  |   | 1,824     |  |  |   | (5  | )
|T2 Systems, Inc.                                                          |  |      | Revolver     |  |            |  | 1.00 | %                   |  |   | 1,955     |  |  |   | 20  |  
|The Original Cakerie, Ltd. (Canada)                                       |  |      | Revolver     |  |            |  | 0.50 | %                   |  |   | 1,665     |  |  |   |    |  
|Zywave, Inc.                                                              |  |      | Revolver     |  |            |  | 0.50 | %                   |  |   | 1,500     |  |  |   | (5  | )
|                                                                          |  |      |              |  |            |  |      |                     |  |   |           |  |  |   |     |  
|Total unfunded commitments                                                |  |      |              |  |            |  |      |                     |  | $ | 30,361    |  |  | $ | 2   |  
|                                                                          |  |      |              |  |            |  |      |                     |  |   |           |  |  |   |     |  



|(11) | As of December 31, 2016, this LIBOR loan was indexed to the 30-day LIBOR rate at 0.77%.
|---- | ---------------------------------------------------------------------------------------

Below is certain summarized consolidated financial information for Credit Fund as of March 31, 2017 and December 31, 2016,
respectively. Credit Fund commenced operations in May 2016.



|                                                                                   |  |                |         |  |                   |   |         | 
|---------------------------------------------------------------------------------- |  | -------------- | ------- |  | ----------------- | - | ------- | 
|                                                                                   |  | March 31, 2017 |         |  | December 31, 2016 |  
|                                                                                   |  | (unaudited)    |         |  |                   |  
|Selected Consolidated Balance Sheet Information                                    |  |                |         |  |                   |   |         | 
|ASSETS                                                                             |  |                |         |  |                   |   |         | 
|Investments, at fair value (amortized cost of $553,401 and $433,272, respectively) |  | $              | 558,694 |  |                   | $ | 437,829 | 
|Cash and other assets                                                              |  |                | 15,088  |  |                   |   | 11,326  | 
|                                                                                   |  |                |         |  |                   |   |         | 
|Total assets                                                                       |  | $              | 573,782 |  |                   | $ | 449,155 | 
|                                                                                   |  |                |         |  |                   |   |         | 
|LIABILITIES AND MEMBERS EQUITY                                                    |  |                |         |  |                   |   |         | 
|Secured borrowings                                                                 |  | $              | 367,375 |  |                   | $ | 248,540 | 
|Mezzanine loans                                                                    |  |                | 86,044  |  |                   |   | 62,384  | 
|Other liabilities                                                                  |  |                | 24,208  |  |                   |   | 63,684  | 
|Subordinated loans and members equity                                             |  |                | 96,155  |  |                   |   | 74,547  | 
|                                                                                   |  |                |         |  |                   |   |         | 
|Liabilities and members equity                                                    |  | $              | 573,782 |  |                   | $ | 449,155 | 
|                                                                                   |  |                |         |  |                   |   |         | 



|                                                                    |  |                                               |       | 
|------------------------------------------------------------------- |  | --------------------------------------------- | ----- | 
|                                                                    |  | For the threemonth period endedMarch 31, 2017 |      
|                                                                    |  | (unaudited)                                   |      
|Selected Consolidated Statement of Operations Information:          |  |                                               |       | 
|Total investment income                                             |  | $                                             | 8,182 | 
|                                                                    |  |                                               |       | 
|Expenses                                                            |  |                                               |       | 
|Interest and credit facility expenses                               |  |                                               | 5,473 | 
|Other expenses                                                      |  |                                               | 318   | 
|                                                                    |  |                                               |       | 
|Total expenses                                                      |  |                                               | 5,791 | 
|                                                                    |  |                                               |       | 
|Net investment income (loss)                                        |  |                                               | 2,391 | 
|                                                                    |  |                                               |       | 
|Net realized gain (loss) on investments                             |  |                                               |      | 
|Net change in unrealized appreciation (depreciation) on investments |  |                                               | 737   | 
|                                                                    |  |                                               |       | 
|Net increase (decrease) resulting from operations                   |  | $                                             | 3,128 | 
|                                                                    |  |                                               |       | 



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Debt

Credit Fund Facility

On June 24,
2016, Credit Fund entered into the Credit Fund Facility with the Company pursuant to which Credit Fund may from time to time request mezzanine loans from the Company. The maximum principal amount of the Credit Fund Facility is $100,000. The maturity
date of the Credit Fund Facility is June 24, 2017. Amounts borrowed under the Credit Fund Facility bear interest at a rate of LIBOR plus 9.50%.

During the three month period ended March 31, 2017, there were mezzanine loan borrowings of $45,660 and repayments of $22,000 under the
Credit Fund Facility. As of March 31, 2017 and December 31, 2016, there were $86,044 and $62,384 in mezzanine loans outstanding, respectively.

As of March 31, 2017, Credit Fund was in compliance with all covenants and other requirements of the Credit Fund Facility.

Credit Fund Sub Facility

On
June 24, 2016, Credit Fund Sub closed on the Credit Fund Sub Facility with lenders. The Credit Fund Sub Facility provides for secured borrowings during the applicable revolving period up to an amount equal to $450,000, with an accordion feature
that can, subject to certain conditions, increase the aggregate maximum credit commitment up to an amount not to exceed $1,400,000. The facility is secured by a first lien security interest in substantially all of the portfolio investments held by
Credit Fund Sub and the Companys and Credit Partners unfunded capital commitments. The maturity date of the Credit Fund Sub Facility is June 24, 2022. Amounts borrowed under the Credit Fund Sub Facility bear interest at a rate of
LIBOR plus 2.50%.

During the three month period ended March 31, 2017, there were secured borrowings of $118,835 under the Credit
Fund Sub Facility. As of March 31, 2017 and December 31, 2016, there was $367,375 and $248,540 in secured borrowings outstanding, respectively.

As of March 31, 2017, Credit Fund Sub was in compliance with all covenants and other requirements of the Credit Fund Sub Facility.

6. BORROWINGS

In accordance with the
Investment Company Act, the Company is only allowed to borrow amounts such that its asset coverage, as defined in the Investment Company Act, is at least 200% after such borrowing. As of March 31, 2017 and December 31, 2016, asset coverage
was 215.03%, and 209.97%, respectively. During the three month periods ended March 31, 2017 and 2016, there were secured borrowings of $93,000 and $111,000, respectively, under the SPV Credit Facility and Credit Facility and repayments of
$124,277 and $66,000, respectively, under the SPV Credit Facility and Credit Facility. As of March 31, 2017 and December 31, 2016, there was $390,608 and $421,885, respectively, in secured borrowings outstanding.

SPV Credit Facility

The SPV
closed on May 24, 2013 on the SPV Credit Facility, which was subsequently amended on June 30, 2014, June 19, 2015 and June 9, 2016. The SPV Credit Facility provides for secured borrowings during the applicable revolving period up
to an amount equal to the lesser of $400,000 (the borrowing base as calculated pursuant to the terms of the SPV Credit Facility) and the amount of net cash proceeds and unpledged capital commitments the Company has received, with an accordion
feature that can, subject to certain conditions, increase the aggregate maximum credit commitment up to an amount not to exceed $750,000, subject to restrictions imposed on borrowings under the Investment Company Act and certain restrictions and
conditions set forth in the SPV Credit Facility, including adequate collateral to support such borrowings. The SPV Credit



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Facility has a revolving period through May 23, 2019 and a maturity date of May 24, 2021. Borrowings under the SPV Credit Facility bear interest initially at the applicable commercial
paper rate (if the lender is a conduit lender) or LIBOR (or, if applicable, a rate based on the prime rate or federal funds rate) plus 2.00% per year through May 23, 2018, with a pre-determined future
interest rate increase of 0.50% during the final year of the revolving period and pre-determined future interest rate increases of 0.875%-1.75% over the two years
following the end of the revolving period. The SPV is also required to pay an undrawn commitment fee of between 0.25% and 0.75% per year depending on the drawings under the SPV Credit Facility. Payments under the SPV Credit Facility are made
quarterly. The lenders have a first lien security interest on substantially all of the assets of the SPV.

As part of the SPV Credit
Facility, the SPV is subject to limitations as to how borrowed funds may be used and the types of loans that are eligible to be acquired by the SPV including, but not limited to, restrictions on sector and geographic concentrations, loan size,
payment frequency, tenor and minimum investment ratings (or estimated ratings). In addition, borrowed funds are intended to be used primarily to purchase first lien loan assets, and the SPV is limited in its ability to purchase certain other assets
(including, but not limited to, second lien loans, covenant-lite loans, revolving and delayed draw loans and discount loans) and other assets are not permitted to be purchased (including, but not limited to paid-in-kind loans and structured finance obligations). The SPV Credit Facility has certain requirements relating to interest coverage, collateral quality and portfolio performance, including limitations on
delinquencies and charge offs, certain violations of which could result in the immediate acceleration of the amounts due under the SPV Credit Facility. The SPV Credit Facility is also subject to a borrowing base that applies different advance rates
to assets held by the SPV based generally on the fair market value of such assets. Under certain circumstances as set forth in the SPV Credit Facility, the Company could be obliged to repurchase loans from the SPV.

As of March 31, 2017 and 2016, the SPV was in compliance with all covenants and other requirements of the SPV Credit Facility.

Credit Facility

The Company
closed on March 21, 2014 on the Credit Facility, which was subsequently amended on January 8, 2015, May 25, 2016 and March 22, 2017. The maximum principal amount of the Credit Facility is $283,000, subject to availability under
the Credit Facility, which is based on certain advance rates multiplied by the value of the Companys portfolio investments (subject to certain concentration limitations) net of certain other indebtedness that the Company may incur in
accordance with the terms of the Credit Facility. Proceeds of the Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. Maximum capacity under the Credit Facility may be increased to $550,000
through the exercise by the Company of an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing. The Credit Facility includes a $20,000 limit for swingline loans and a $5,000
limit for letters of credit. The Company may borrow amounts in U.S. dollars or certain other permitted currencies. Amounts drawn under the Credit Facility, including amounts drawn in respect of letters of credit, bear interest at either LIBOR plus
an applicable spread of 2.25%, or an alternative base rate (which is the highest of a prime rate, the federal funds effective rate plus 0.50%, or one month LIBOR plus 1.00%) plus an applicable spread of 1.25%. The Company may elect
either the LIBOR or the alternative base rate at the time of drawdown, and loans may be converted from one rate to another at any time, subject to certain conditions. The Company also pays a fee of 0.375% on undrawn amounts under the
Credit Facility and, in respect of each undrawn letter of credit, a fee and interest rate equal to the then-applicable margin under the Credit Facility while the letter of credit is outstanding. The availability period under the Credit Facility will
terminate on March 21, 2021 and the Credit Facility will mature on March 21, 2022. During the period from March 21, 2021 to March 21, 2022, the Company will be obligated to make mandatory prepayments under the Credit Facility out
of the proceeds of certain asset sales, other recovery events and equity and debt issuances.



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Subject to certain exceptions, the Credit Facility is secured by a first lien security interest
in substantially all of the portfolio investments held by the Company and the Companys unfunded investor equity capital commitments (provided that the amount of unfunded capital commitments ultimately available to the lenders is limited to
$100,000). The pledge of unfunded investor equity capital commitments was subject to release once $100,000 of incremental capital had been called and received by the Company subsequent to January 8, 2015. The pledge of unfunded investor equity
capital commitments had been released as of March 31, 2017. The Credit Facility includes customary covenants, including certain financial covenants related to asset coverage, shareholders equity and liquidity, certain limitations on the
incurrence of additional indebtedness and liens, and other maintenance covenants, as well as usual and customary events of default for senior secured revolving credit facilities of this nature.

As of March 31, 2017 and December 31, 2016, the Company was in compliance with all covenants and other requirements of the Credit
Facility.

Summary of Facilities

The Facilities consisted of the following as of March 31, 2017 and December 31, 2016:



|                    |  |                   |         |  |                       |   |         |                   |  |   |                    |  |  |   |         | 
|------------------- |  | ----------------- | ------- |  | --------------------- | - | ------- | ----------------- |  | - | ------------------ |  |  | - | ------- | 
|                    |  | March 31, 2017    |        
|                    |  | Total Facility    |         |  | BorrowingsOutstanding |   |         | Unused Portion(1) |  |   | AmountAvailable(2) | 
|SPV Credit Facility |  | $                 | 400,000 |  |                       | $ | 201,108 |                   |  | $ | 198,892            |  |  | $ | 10,476  | 
|Credit Facility     |  |                   | 283,000 |  |                       |   | 189,500 |                   |  |   | 93,500             |  |  |   | 93,500  | 
|                    |  |                   |         |  |                       |   |         |                   |  |   |                    |  |  |   |         | 
|Total               |  | $                 | 683,000 |  |                       | $ | 390,608 |                   |  | $ | 292,392            |  |  | $ | 103,976 | 
|                    |  |                   |         |  |                       |   |         |                   |  |   |                    |  |  |   |         | 
|                    | 
|                    |  | December 31, 2016 |        
|                    |  | Total Facility    |         |  | BorrowingsOutstanding |   |         | Unused Portion(1) |  |   | AmountAvailable(2) | 
|SPV Credit Facility |  | $                 | 400,000 |  |                       | $ | 252,885 |                   |  | $ | 147,115            |  |  | $ | 5,988   | 
|Credit Facility     |  |                   | 220,000 |  |                       |   | 169,000 |                   |  |   | 51,000             |  |  |   | 51,000  | 
|                    |  |                   |         |  |                       |   |         |                   |  |   |                    |  |  |   |         | 
|Total               |  | $                 | 620,000 |  |                       | $ | 421,885 |                   |  | $ | 198,115            |  |  | $ | 56,988  | 
|                    |  |                   |         |  |                       |   |         |                   |  |   |                    |  |  |   |         | 



|(1) | The unused portion is the amount upon which commitment fees are based.
|--- | ----------------------------------------------------------------------

|(2) | Available for borrowing based on the computation of collateral to support the borrowings and subject to compliance with applicable covenants and financial ratios.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

As of March 31, 2017 and December 31, 2016, $1,666 and $1,667, respectively, of interest expense, $274 and $203, respectively, of
unused commitment fees and $23 and $23, respectively, of other fees were included in interest and credit facility fees payable. For the three month periods ended March 31, 2017 and 2016, the weighted average interest rate was 3.07% and 2.60%,
respectively, and average principal debt outstanding was $376,532 and $257,170, respectively. As of March 31, 2017 and December 31, 2016, the weighted average interest rate was 3.22% and 2.92%, respectively, based on floating LIBOR rates.



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For the three month periods ended March 31, 2017 and 2016, the components of interest
expense and credit facility fees on the Facilities were as follows:



|                                                |  |                                   |       |  |                |   |       | 
|----------------------------------------------- |  | --------------------------------- | ----- |  | -------------- | - | ----- | 
|                                                |  | For the three month periods ended |      
|                                                |  | March 31, 2017                    |       |  | March 31, 2016 |  
|Interest expense                                |  | $                                 | 2,892 |  |                | $ | 1,698 | 
|Facility unused commitment fee                  |  |                                   | 292   |  |                |   | 361   | 
|Amortization of deferred financing costs        |  |                                   | 181   |  |                |   | 213   | 
|Other fees                                      |  |                                   | 30    |  |                |   | 25    | 
|                                                |  |                                   |       |  |                |   |       | 
|Total interest expense and credit facility fees |  | $                                 | 3,395 |  |                | $ | 2,297 | 
|                                                |  |                                   |       |  |                |   |       | 
|Cash paid for interest expense                  |  | $                                 | 2,893 |  |                | $ | 1,520 | 

7. 2015-1 Notes

On June 26, 2015, the Company completed the 2015-1 Debt Securitization. The 2015-1 Notes were issued by the 2015-1 Issuer, a wholly-owned and consolidated subsidiary of the Company, and are secured by a diversified portfolio of the 2015-1 Issuer consisting primarily of first and second lien senior secured loans. The 2015-1 Debt Securitization was executed through a private placement of the 2015-1 Notes, consisting of $160 million of Aaa/AAA Class A-1A Notes which bear interest at the three-month London Interbank Offered Rate (LIBOR) plus
1.85%; $40 million of Aaa/AAA Class A-1B Notes which bear interest at the three-month LIBOR plus 1.75% for the first 24 months and the three-month LIBOR plus 2.05% thereafter; $27 million of
Aaa/AAA Class A-1C Notes which bear interest at 3.75%; and $46 million of Aa2 Class A-2 Notes which bear interest at the three month LIBOR plus 2.70%. The
2015-1 Notes were issued at par and are scheduled to mature on July 15, 2027. The Company received 100% of the preferred interests (the Preferred Interests) issued by the 2015-1 Issuer on the closing date of the 2015-1 Debt Securitization in exchange for the Companys contribution to the Issuer of the initial closing date loan portfolio.
The Preferred Interests do not bear interest and had a nominal value of $125.9 million at closing. In connection with the contribution, the Company made customary representations, warranties and covenants to the
2015-1 Issuer in the purchase agreement. The Class A-1A, Class A-1B and
Class A-1C and Class A-2 Notes are included in the March 31, 2017 consolidated financial statements. The Preferred Interests were eliminated in
consolidation.

On the closing date of the 2015-1 Debt Securitization, the 2015-1 Issuer effected a one-time distribution to the Company of a substantial portion of the proceeds of the private placement of the
2015-1 Notes, net of expenses, which distribution was used to repay a portion of certain amounts outstanding under the SPV Credit Facility and the Credit Facility. As part of the
2015-1 Debt Securitization, certain first and second lien senior secured loans were distributed by the SPV to the Company pursuant to a distribution and contribution agreement. The Company contributed the
loans that comprised the initial closing date loan portfolio (including the loans distributed to the Company from the SPV) to the 2015-1 Issuer pursuant to a contribution agreement. Future loan transfers from
the Company to the 2015-1 Issuer will be made pursuant to a sale agreement and are subject to the approval of the Companys Board of Directors. Assets of the 2015-1
Issuer are not available to the creditors of the SPV or the Company. In connection with the issuance and sale of the 2015-1 Notes, the Company made customary representations, warranties and covenants in the
purchase agreement.

During the reinvestment period, pursuant to the indenture governing the
2015-1 Notes, all principal collections received on the underlying collateral may be used by the 2015-1 Issuer to purchase new collateral under the direction of
Investment Adviser in its capacity as collateral manager of the 2015-1 Issuer and in accordance with the Companys investment strategy.

The Investment Adviser serves as collateral manager to the 2015-1 Issuer under a collateral management
agreement (the Collateral Management Agreement). Pursuant to the Collateral Management Agreement, the 2015-1 Issuer pays management fees (comprised of base management fees, subordinated management
fees and



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incentive management fees) to the Investment Adviser for rendering collateral management services. As per the Collateral Management Agreement, for the period the Company retains all of the
Preferred Interests, the Investment Adviser does not earn management fees for providing such collateral management services. The Company currently retains all of the Preferred Interests, thus the Investment Adviser did not earn any management fees
from the 2015-1 Issuer for the three month periods ended March 31, 2017 and 2016. Any such waived fees may not be recaptured by the Investment Adviser.

Pursuant to an undertaking by the Company in connection with the 2015-1 Debt Securitization, the
Company has agreed to hold on an ongoing basis Preferred Interests with an aggregate dollar purchase price at least equal to 5% of the aggregate outstanding amount of all collateral obligations by the 2015-1
Issuer for so long as any securities of the 2015-1 Issuer remain outstanding. As of March 31, 2017, the Company was in compliance with its undertaking.

The 2015-1 Issuer pays ongoing administrative expenses to the trustee, independent accountants, legal
counsel, rating agencies and independent managers in connection with developing and maintaining reports, and providing required services in connection with the administration of the 2015-1 Issuer.

As of March 31, 2017, there were 59 first lien and second lien senior secured loans with a total fair value of approximately $389,003
securing the 2015-1 Notes. The pool of loans in the securitization must meet certain requirements, including asset mix and concentration, term, agency rating, collateral coverage, minimum coupon, minimum
spread and sector diversity requirements in the indenture governing the 2015-1 Notes.

For the
three month periods ended March 31, 2017 and 2016, the effective annualized weighted average interest rate, which includes amortization of debt issuance costs on the 2015-1 Notes, was 3.18% and 2.79%,
respectively, based on floating LIBOR rates.

For the three month periods ended March 31, 2017 and 2016, the components of interest
expense on the 2015-1 Notes were as follows:



|                                                |  |                                   |       |  |                |   |       | 
|----------------------------------------------- |  | --------------------------------- | ----- |  | -------------- | - | ----- | 
|                                                |  | For the three month periods ended |      
|                                                |  | March 31, 2017                    |       |  | March 31, 2016 |  
|Interest expense                                |  | $                                 | 2,092 |  |                | $ | 1,850 | 
|Amortization of deferred financing costs        |  |                                   | 50    |  |                |   | 51    | 
|                                                |  |                                   |       |  |                |   |       | 
|Total interest expense and credit facility fees |  | $                                 | 2,142 |  |                | $ | 1,901 | 
|                                                |  |                                   |       |  |                |   |       | 
|Cash paid for interest expense                  |  | $                                 | 2,059 |  |                | $ | 1,707 | 

8. COMMITMENTS AND CONTINGENCIES

A summary of significant contractual payment obligations was as follows as of March 31, 2017 and December 31, 2016:



|                      |  |                                         |         |  |                   |   |         |                |  |   |                   |  |  |   |         | 
|--------------------- |  | --------------------------------------- | ------- |  | ----------------- | - | ------- | -------------- |  | - | ----------------- |  |  | - | ------- | 
|                      |  | SPV Credit Facility and Credit Facility |         |  | 2015-1 Notes      |  
|Payment Due by Period |  | March 31, 2017                          |         |  | December 31, 2016 |   |         | March 31, 2017 |  |   | December 31, 2016 | 
|Less than 1 Year      |  | $                                       |        |  |                   | $ |        |                |  | $ |                  |  |  | $ |        | 
|1-3 Years             |  |                                         |        |  |                   |   |        |                |  |   |                  |  |  |   |        | 
|3-5 Years             |  |                                         | 390,608 |  |                   |   | 421,885 |                |  |   |                  |  |  |   |        | 
|More than 5 Years     |  |                                         |        |  |                   |   |        |                |  |   | 273,000           |  |  |   | 273,000 | 
|                      |  |                                         |         |  |                   |   |         |                |  |   |                   |  |  |   |         | 
|Total                 |  | $                                       | 390,608 |  |                   | $ | 421,885 |                |  | $ | 273,000           |  |  | $ | 273,000 | 
|                      |  |                                         |         |  |                   |   |         |                |  |   |                   |  |  |   |         | 

In the ordinary course of its business, the Company enters into contracts or agreements that contain
indemnification or warranties. Future events could occur that lead to the execution of these provisions against the



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Company. The Company believes that the likelihood of such an event is remote; however, the maximum potential exposure is unknown. No accrual has been made in the consolidated financial statements
as of March 31, 2017 and December 31, 2016 for any such exposure.

As of March 31, 2017 and December 31, 2016, the
Company had $1,274,174 and $1,222,358, respectively, in total capital commitments from stockholders, of which $473,514 and $421,698, respectively, was unfunded. As of March 31, 2017 and December 31, 2016, current directors had committed
$821 in capital commitments to the Company.

The Company had the following unfunded commitments to fund delayed draw and revolving senior
secured loans as of the indicated dates:



|                                         |  |                 |        |  |                   |   |        | 
|---------------------------------------- |  | --------------- | ------ |  | ----------------- | - | ------ | 
|                                         |  | Par Value as of |       
|                                         |  | March 31, 2017  |        |  | December 31, 2016 |  
|Unfunded delayed draw commitments        |  | $               | 44,541 |  |                   | $ | 35,704 | 
|Unfunded revolving term loan commitments |  |                 | 26,517 |  |                   |   | 24,063 | 
|                                         |  |                 |        |  |                   |   |        | 
|Total unfunded commitments               |  | $               | 71,058 |  |                   | $ | 59,767 | 
|                                         |  |                 |        |  |                   |   |        | 

As of March 31, 2017, the Company had remaining commitments to fund, from time to time, capital to Credit
Fund of up to $354,499. Funding of such commitments generally requires the approval of the board of Credit Fund, including the board members appointed by the Company. As of March 31, 2017, the Company had remaining commitments to fund, from
time to time, mezzanine loans to Credit Fund of up to $13,956, of which $10,438 was available for borrowing based on the computation of collateral to support the borrowings.

9. NET ASSETS

The Company has the
authority to issue 200,000,000 shares of common stock, $0.01 per share par value.

During the three month period ended March 31,
2017, the Company issued 5,837 shares for $108 from the reinvestment of dividends. The following table summarizes capital activity during the three month period ended March 31, 2017:



|                                                                    |  |              |            |  |                            |   |     |               |  |   |                                        |  |  |                                                 |     |   |                                                                   |   |         |                |  |   |         |   |  |   |        |   |  |   |         |  
|------------------------------------------------------------------- |  | ------------ | ---------- |  | -------------------------- | - | --- | ------------- |  | - | -------------------------------------- |  |  | ----------------------------------------------- | --- | - | ----------------------------------------------------------------- | - | ------- | -------------- |  | - | ------- | - |  | - | ------ | - |  | - | ------- | -
|                                                                    |  | Common Stock |            |  | CapitalinExcessof ParValue |   |     | OfferingCosts |  |   | Accumulated NetInvestmentIncome (Loss) |  |  | AccumulatedNet RealizedGain (Loss)onInvestments |     |   | Accumulated NetUnrealizedAppreciation(Depreciation) onInvestments |   |         | TotalNetAssets | 
|                                                                    |  | Shares       |            |  | Amount                     |   |     |               |  |   |                                        | 
|Balance, beginning of period                                        |  |              | 41,702,318 |  |                            | $ | 417 |               |  | $ | 799,580                                |  |  | $                                               | (74 | ) |                                                                   | $ | (3,207  | )              |  | $ | (25,357 | ) |  | $ | (7,222 | ) |  | $ | 764,137 |  
|Reinvestment of dividends                                           |  |              | 5,837      |  |                            |   |    |               |  |   | 108                                    |  |  |                                                 |    |   |                                                                   |   |        |                |  |   |        |   |  |   |       |   |  |   | 108     |  
|Net investment income (loss)                                        |  |              |           |  |                            |   |    |               |  |   |                                       |  |  |                                                 |    |   |                                                                   |   | 19,107  |                |  |   |        |   |  |   |       |   |  |   | 19,107  |  
|Net realized gain (loss) on investments                             |  |              |           |  |                            |   |    |               |  |   |                                       |  |  |                                                 |    |   |                                                                   |   |        |                |  |   | (7,694  | ) |  |   |       |   |  |   | (7,694  | )
|Net change in unrealized appreciation (depreciation) on investments |  |              |           |  |                            |   |    |               |  |   |                                       |  |  |                                                 |    |   |                                                                   |   |        |                |  |   |        |   |  |   | 4,760  |   |  |   | 4,760   |  
|Dividends declared                                                  |  |              |           |  |                            |   |    |               |  |   |                                       |  |  |                                                 |    |   |                                                                   |   | (17,100 | )              |  |   |        |   |  |   |       |   |  |   | (17,100 | )
|                                                                    |  |              |            |  |                            |   |     |               |  |   |                                        |  |  |                                                 |     |   |                                                                   |   |         |                |  |   |         |   |  |   |        |   |  |   |         |  
|Balance, end of period                                              |  |              | 41,708,155 |  |                            | $ | 417 |               |  | $ | 799,688                                |  |  | $                                               | (74 | ) |                                                                   | $ | (1,200  | )              |  | $ | (33,051 | ) |  | $ | (2,462 | ) |  | $ | 763,318 |  
|                                                                    |  |              |            |  |                            |   |     |               |  |   |                                        |  |  |                                                 |     |   |                                                                   |   |         |                |  |   |         |   |  |   |        |   |  |   |         |  



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During the three month period ended March 31, 2016, the Company issued 1,819,066 shares for
$33,074 including reinvestment of dividends. The following table summarizes capital activity during the three month period ended March 31, 2016:



|                                                                    |  |              |            |  |                             |   |     |               |  |   |                                        |  |  |                                                 |     |   |                                                                   |   |         |                |  |   |        |   |  |   |         |   |  |   |         |  
|------------------------------------------------------------------- |  | ------------ | ---------- |  | --------------------------- | - | --- | ------------- |  | - | -------------------------------------- |  |  | ----------------------------------------------- | --- | - | ----------------------------------------------------------------- | - | ------- | -------------- |  | - | ------ | - |  | - | ------- | - |  | - | ------- | -
|                                                                    |  | Common Stock |            |  | Capitalin Excessof ParValue |   |     | OfferingCosts |  |   | AccumulatedNet InvestmentIncome (Loss) |  |  | AccumulatedNet RealizedGain (Loss)onInvestments |     |   | Accumulated NetUnrealizedAppreciation(Depreciation) onInvestments |   |         | TotalNetAssets | 
|                                                                    |  | Shares       |            |  | Amount                      |   |     |               |  |   |                                        | 
|Balance, beginning of period                                        |  |              | 31,524,083 |  |                             | $ | 315 |               |  | $ | 613,944                                |  |  | $                                               | (74 | ) |                                                                   | $ | (12,994 | )              |  | $ | (2,411 | ) |  | $ | (27,054 | ) |  | $ | 571,726 |  
|Common stock issued                                                 |  |              | 1,815,181  |  |                             |   | 18  |               |  |   | 32,982                                 |  |  |                                                 |    |   |                                                                   |   |        |                |  |   |       |   |  |   |        |   |  |   | 33,000  |  
|Reinvestment of dividends                                           |  |              | 3,885      |  |                             |   |    |               |  |   | 74                                     |  |  |                                                 |    |   |                                                                   |   |        |                |  |   |       |   |  |   |        |   |  |   | 74      |  
|Net investment income (loss)                                        |  |              |           |  |                             |   |    |               |  |   |                                       |  |  |                                                 |    |   |                                                                   |   | 11,960  |                |  |   |       |   |  |   |        |   |  |   | 11,960  |  
|Net realized gain (loss) on investments                             |  |              |           |  |                             |   |    |               |  |   |                                       |  |  |                                                 |    |   |                                                                   |   |        |                |  |   | (3,577 | ) |  |   |        |   |  |   | (3,577  | )
|Net change in unrealized appreciation (depreciation) on investments |  |              |           |  |                             |   |    |               |  |   |                                       |  |  |                                                 |    |   |                                                                   |   |        |                |  |   |       |   |  |   | (11,091 | ) |  |   | (11,091 | )
|Dividends declared                                                  |  |              |           |  |                             |   |    |               |  |   |                                       |  |  |                                                 |    |   |                                                                   |   | (13,337 | )              |  |   |       |   |  |   |        |   |  |   | (13,337 | )
|                                                                    |  |              |            |  |                             |   |     |               |  |   |                                        |  |  |                                                 |     |   |                                                                   |   |         |                |  |   |        |   |  |   |         |   |  |   |         |  
|Balance, end of period                                              |  |              | 33,343,149 |  |                             | $ | 333 |               |  | $ | 647,000                                |  |  | $                                               | (74 | ) |                                                                   | $ | (14,371 | )              |  | $ | (5,988 | ) |  | $ | (38,145 | ) |  | $ | 588,755 |  
|                                                                    |  |              |            |  |                             |   |     |               |  |   |                                        |  |  |                                                 |     |   |                                                                   |   |         |                |  |   |        |   |  |   |         |   |  |   |         |  

The following table summarizes total shares issued and proceeds received related to capital subscriptions for
the Companys common stock and reinvestment of dividends during the three month period ended March 31, 2017:



|                  |  |               |       |  |                   |   |     | 
|----------------- |  | ------------- | ----- |  | ----------------- | - | --- | 
|                  |  | Shares Issued |       |  | Proceeds Received |  
|January 24, 2017* |  |               | 5,837 |  |                   | $ | 108 | 
|                  |  |               |       |  |                   |   |     | 
|Total             |  |               | 5,837 |  |                   | $ | 108 | 
|                  |  |               |       |  |                   |   |     | 



|* | Represents shares issued upon the reinvestment of dividends
|- | -----------------------------------------------------------

The following table summarizes
total shares issued and proceeds received related to capital subscriptions for the Companys common stock and reinvestment of dividends during the three month period ended March 31, 2016:



|                  |  |               |           |  |                   |   |        | 
|----------------- |  | ------------- | --------- |  | ----------------- | - | ------ | 
|                  |  | Shares Issued |           |  | Proceeds Received |  
|January 22, 2016* |  |               | 3,885     |  |                   | $ | 74     | 
|March 11, 2016    |  |               | 1,815,181 |  |                   |   | 33,000 | 
|                  |  |               |           |  |                   |   |        | 
|Total             |  |               | 1,819,066 |  |                   | $ | 33,074 | 
|                  |  |               |           |  |                   |   |        | 



|* | Represents shares issued upon the reinvestment of dividends
|- | -----------------------------------------------------------

Subscribed but unissued shares are presented in equity with a deduction of subscriptions receivable until cash is received for a subscription.
There were no subscribed but unissued shares as of March 31, 2017 and December 31, 2016.

Subscription transactions during the
three month periods ended March 31, 2017 and 2016 were executed at an offering price at a premium to net asset value due to the requirement to use prior quarter net asset value as offering price unless it would result in the Company selling
shares of its common stock at a price below the current net asset value and also in order to effect a reallocation of organizational costs to subsequent investors. Such subscription transactions increased net asset value by $0.00 per share and $0.01
per share, respectively, for the three month periods ended March 31, 2017 and 2016, respectively.



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The Company computes earnings per common share in accordance with ASC 260, Earnings Per
Share. Basic earnings per common share were calculated by dividing net increase (decrease) in net assets resulting from operations attributable to the Company by the weighted-average number of common shares outstanding for the period.

Basic and diluted earnings per common share were as follows:



|                                                                |  |                                   |            |  |                |   |            |  
|--------------------------------------------------------------- |  | --------------------------------- | ---------- |  | -------------- | - | ---------- | -
|                                                                |  | For the three month periods ended |           
|                                                                |  | March 31, 2017                    |            |  | March 31, 2016 |  
|Net increase (decrease) in net assets resulting from operations |  | $                                 | 16,173     |  |                | $ | (2,708     | )
|Weighted-average common shares outstanding                      |  |                                   | 41,706,598 |  |                |   | 31,945,959 |  
|                                                                |  |                                   |            |  |                |   |            |  
|Basic and diluted earnings per common share                     |  | $                                 | 0.39       |  |                | $ | (0.08      | )
|                                                                |  |                                   |            |  |                |   |            |  

The following table summarizes the Companys dividends declared and payable since inception through
March 31, 2017:



|                   |  |                    |  |                  |  |                 |      |     |             |   |        | 
|------------------ |  | ------------------ |  | ---------------- |  | --------------- | ---- | --- | ----------- | - | ------ | 
|Date Declared      |  | Record Date        |  | Payment Date     |  | Per ShareAmount |      |     | TotalAmount |  
|March 13, 2014     |  | March 31, 2014     |  | April 14, 2014   |  | $               | 0.19 |     |             | $ | 2,449  | 
|June 26, 2014      |  | June 30, 2014      |  | July 14, 2014    |  | $               | 0.27 |     |             | $ | 3,481  | 
|September 12, 2014 |  | September 18, 2014 |  | October 9, 2014  |  | $               | 0.44 |     |             | $ | 5,956  | 
|December 19, 2014  |  | December 29, 2014  |  | January 26, 2015 |  | $               | 0.35 |     |             | $ | 6,276  | 
|March 11, 2015     |  | March 13, 2015     |  | April 17, 2015   |  | $               | 0.37 |     |             | $ | 7,833  | 
|June 24, 2015      |  | June 30, 2015      |  | July 22, 2015    |  | $               | 0.37 |     |             | $ | 9,902  | 
|September 24, 2015 |  | September 24, 2015 |  | October 22, 2015 |  | $               | 0.42 |     |             | $ | 11,670 | 
|December 29, 2015  |  | December 29, 2015  |  | January 22, 2016 |  | $               | 0.40 |     |             | $ | 12,610 | 
|December 29, 2015  |  | December 29, 2015  |  | January 22, 2016 |  | $               | 0.18 | (1) |             | $ | 5,674  | 
|March 10, 2016     |  | March 14, 2016     |  | April 22, 2016   |  | $               | 0.40 |     |             | $ | 13,337 | 
|June 8, 2016       |  | June 8, 2016       |  | July 22, 2016    |  | $               | 0.40 |     |             | $ | 13,943 | 
|September 28, 2016 |  | September 28, 2016 |  | October 24, 2016 |  | $               | 0.40 |     |             | $ | 15,917 | 
|December 29, 2016  |  | December 29, 2016  |  | January 24, 2017 |  | $               | 0.41 |     |             | $ | 17,098 | 
|December 29, 2016  |  | December 29, 2016  |  | January 24, 2017 |  | $               | 0.07 | (1) |             | $ | 2,919  | 
|March 20, 2017     |  | March 20, 2017     |  | April 24, 2017   |  | $               | 0.41 |     |             | $ | 17,100 | 



|(1) | Represents a special dividend.
|--- | ------------------------------



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10. CONSOLIDATED FINANCIAL HIGHLIGHTS

The following is a schedule of consolidated financial highlights for the three month periods ended March 31, 2017 and 2016:



|                                                                                                 |  |                                   |            |   |                |   |            |   
|------------------------------------------------------------------------------------------------ |  | --------------------------------- | ---------- | - | -------------- | - | ---------- | --
|                                                                                                 |  | For the three month periods ended |           
|                                                                                                 |  | March 31, 2017                    |            |   | March 31, 2016 |  
|Per Share Data:                                                                                  |  |                                   |            |   |                |   |            |   
|Net asset value per share, beginning of period                                                   |  | $                                 | 18.32      |   |                | $ | 18.14      |   
|Net investment income (loss) (1)                                                                 |  |                                   | 0.46       |   |                |   | 0.37       |   
|Net realized gain (loss) and net change in unrealized appreciation (depreciation) on
investments |  |                                   | (0.07      | ) |                |   | (0.46      | ) 
|                                                                                                 |  |                                   |            |   |                |   |            |   
|Net increase (decrease) in net assets resulting from operations                                  |  |                                   | 0.39       |   |                |   | (0.09      | ) 
|                                                                                                 |  |                                   |            |   |                |   |            |   
|Dividends declared (2)                                                                           |  |                                   | (0.41      | ) |                |   | (0.40      | ) 
|Effect of subscription offering price
(3)                                                        |  |                                   | 0.00       |   |                |   | 0.01       |   
|                                                                                                 |  |                                   |            |   |                |   |            |   
|Net asset value per share, end of period                                                         |  | $                                 | 18.30      |   |                | $ | 17.66      |   
|                                                                                                 |  |                                   |            |   |                |   |            |   
|Number of shares outstanding, end of period                                                      |  |                                   | 41,708,155 |   |                |   | 33,343,149 |   
|Total return (4)                                                                                 |  |                                   | 2.14       | % |                |   | (0.44      | )%
|Net assets, end of period                                                                        |  | $                                 | 763,318    |   |                | $ | 588,755    |   
|Ratio to average net assets
(5):                                                                 |  |                                   |            |   |                |   |            |   
|Expenses net of waiver, before incentive fees                                                    |  |                                   | 1.32       | % |                |   | 1.42       | % 
|Expenses net of waiver, after incentive fees                                                     |  |                                   | 1.94       | % |                |   | 1.94       | % 
|Expenses gross of waiver, after incentive fees                                                   |  |                                   | 2.16       | % |                |   | 2.18       | % 
|Net investment income (loss) (6)                                                                 |  |                                   | 2.48       | % |                |   | 2.08       | % 
|Interest expense and credit facility fees                                                        |  |                                   | 0.72       | % |                |   | 0.73       | % 
|Ratios/Supplemental Data:                                                                        |  |                                   |            |   |                |   |            |   
|Asset coverage, end of period                                                                    |  |                                   | 215.03     | % |                |   | 206.60     | % 
|Portfolio turnover                                                                               |  |                                   | 10.20      | % |                |   | 2.57       | % 
|Total committed capital, end of period                                                           |  | $                                 | 1,274,174  |   |                | $ | 1,188,640  |   
|Ratio of total contributed capital to total committed capital, end of period                     |  |                                   | 62.84      | % |                |   | 54.53      | % 
|Weighted-average shares outstanding                                                              |  |                                   | 41,706,598 |   |                |   | 31,945,959 |   



|(1) | Net investment income (loss) per share was calculated as net investment income (loss) for the period divided by the weighted average number of shares outstanding for the period.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Dividends declared per share was calculated as the sum of dividends declared during the period divided by the number of shares outstanding at each respective quarter-end date
(refer to Note 9).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Increase is due to offering price of subscriptions during the period (refer to Note 9).
|--- | ---------------------------------------------------------------------------------------

|(4) | Total return (not annualized) is based on the change in net asset value per share during the period plus the declared dividends, assuming reinvestment of dividends in accordance with the dividend reinvestment plan,
divided by the beginning net asset value for the period. Total return for the three month periods ended March 31, 2017 and 2016 is inclusive of $0.00 and $0.01, respectively, per share increase in net asset value for the periods related to the
offering price of subscriptions. Excluding the effects of the higher offering price of subscriptions, total return (not annualized) would have been 2.14% and (0.50%), respectively (refer to Note 9).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | These ratios to average net assets have not been annualized.
|--- | ------------------------------------------------------------

|(6) | The net investment income ratio is net of the waiver of base management fees.
|--- | -----------------------------------------------------------------------------

11. LITIGATION

The Company may become party to certain lawsuits in the ordinary course of business. The Company does not believe that the outcome of current
matters, if any, will materially impact the Company or its consolidated



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financial statements. As of March 31, 2017 and December 31, 2016, the Company was not subject to any material legal proceedings, nor, to the Companys knowledge, is any material
legal proceeding threatened against the Company.

In addition, portfolio investments of the Company could be the subject of litigation or
regulatory investigations in the ordinary course of business. The Company does not believe that the outcome of any current contingent liabilities of its portfolio investments, if any, will materially affect the Company or these consolidated
financial statements.

12. TAX

The
Company has not recorded a liability for any uncertain tax positions pursuant to the provisions of ASC 740, Income Taxes, as of March 31, 2017 and December 31, 2016.

In the normal course of business, the Company is subject to examination by federal and certain state, local and foreign tax regulators. As of
March 31, 2017 and December 31, 2016, the Company had filed tax returns and therefore is subject to examination.

The
Companys taxable income for each period is an estimate and will not be finally determined until the Company files its tax return for each year. Therefore, the final taxable income, and the taxable income earned in each period and carried
forward for distribution in the following period, may be different than this estimate. The estimated tax character of dividends declared for the three month periods ended March 31, 2017 and 2016 was as follows:



|                      |  |                                   |        |  |                |   |        | 
|--------------------- |  | --------------------------------- | ------ |  | -------------- | - | ------ | 
|                      |  | For the three month periods ended |       
|                      |  | March 31, 2017                    |        |  | March 31, 2016 |  
|Ordinary income       |  | $                                 | 17,100 |  |                | $ | 13,337 | 
|Tax return of capital |  | $                                 |       |  |                | $ |       | 

13. SUBSEQUENT EVENTS

Subsequent events have been evaluated through the date the consolidated financial statements were issued. There have been no subsequent events
that require recognition or disclosure through the date the consolidated financial statements were issued, except as disclosed below.

Subsequent to March 31, 2017, the Company borrowed $45,000 under the Credit Facility and SPV Credit Facility to fund investment
acquisitions. The Company also voluntarily repaid $23,504 under the Credit Facility and SPV Credit Facility.

On April 6, 2017,
Credit Fund issued a capital call and delivered capital drawdown notices of $4,000 to each of the Company and Credit Partners. Proceeds from the capital call were due, and the related issuance of $8,000 of subordinated loans occurred, on
April 13, 2017.

On May 5, 2017, the Company issued a capital call and delivered capital drawdown notices totaling $39,488.
Proceeds from the capital call and the related issuance of 2,141,417 shares is expected on or about May 19, 2017.

On May 3, 2017,
the Company entered into an Agreement and Plan of Merger (the Merger Agreement) with NF Investment Corp. (NFIC), a Maryland corporation and an externally managed, non-diversified closed-end investment company that has elected
to be regulated as a BDC under the Investment Company Act. Both the Company and NFIC are managed by the Investment Adviser. Pursuant to the Merger Agreement, NFIC will merge with and into the Company (the Merger) with the Company as the
surviving entity. The completion of



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the Merger is subject to the approval of a majority of the outstanding shares of NFICs common stock and other customary closing conditions. While there can be no assurances as to the exact
timing, or that the Merger will be completed at all, the Company expects to complete the Merger in June 2017. If the proposed Merger is consummated, NFIC will cease to exist as a separate corporation, and each share of common stock of NFIC will be
converted into the right to receive a mixture of cash and shares of common stock of the Company, par value $0.01 per share (the Acquisition Shares and together with such cash, the Merger Consideration), in accordance with the
elections of the stockholders of NFIC (under which at least 5% of the Merger Consideration received by each stockholder of NFIC must be in the form of Acquisition Shares).



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

(dollar amounts in thousands, except per share data, unless otherwise indicated)

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

We have included or incorporated by reference in this Form 10-Q, and from time to time our management
may make, forward-looking statements. These forward-looking statements are not historical facts, but instead relate to future events or the future performance or financial condition of TCG BDC, Inc. (together with its consolidated
subsidiaries, we, us, our, TCG BDC or the Company). These statements are based on current expectations, estimates and projections about us, our current or prospective portfolio investments,
our industry, our beliefs, and our assumptions. The forward-looking statements contained in this Form 10-Q and the documents incorporated by reference herein involve a number of risks and uncertainties,
including statements concerning:



| |  |  | our, or our portfolio companies, future business, operations, operating results or prospects;
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | the return or impact of current and future investments;
| | - |  | -------------------------------------------------------



| |  |  | the impact of any protracted decline in the liquidity of credit markets on our business;
| | - |  | ----------------------------------------------------------------------------------------



| |  |  | the impact of fluctuations in interest rates on our business;
| | - |  | -------------------------------------------------------------



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



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



| |  |  | the impact of changes in laws, policies or regulations (including the interpretation thereof) affecting our operations or the operations of our portfolio companies;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



| |  |  | our ability to recover unrealized losses;
| | - |  | -----------------------------------------



| |  |  | market conditions and our ability to access alternative debt markets and additional debt and equity capital;
| | - |  | ------------------------------------------------------------------------------------------------------------



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



| |  |  | the general economy and its impact on the industries in which we invest;
| | - |  | ------------------------------------------------------------------------



| |  |  | the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives;
| | - |  | ----------------------------------------------------------------------------------------------------------------------



| |  |  | competition with other entities and our affiliates for investment opportunities;
| | - |  | --------------------------------------------------------------------------------



| |  |  | the speculative and illiquid nature of our investments;
| | - |  | -------------------------------------------------------



| |  |  | the use of borrowed money to finance a portion of our investments;
| | - |  | ------------------------------------------------------------------



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



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



| |  |  | the loss of key personnel;
| | - |  | --------------------------



| |  |  | the costs associated with being a public entity;
| | - |  | ------------------------------------------------



| |  |  | the timing, form and amount of any dividend distributions;
| | - |  | ----------------------------------------------------------



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



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| |  |  | the ability to consummate acquisitions;
| | - |  | ---------------------------------------



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



| |  |  | the ability of The Carlyle Group Employee Co., L.L.C. and CELF Advisors LLP to attract and retain highly talented professionals that can provide services to our investment adviser and administrator;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | our ability to maintain our status as a business development company; and
| | - |  | -------------------------------------------------------------------------



| |  |  | our intent to satisfy the requirements of a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------

We use words such as anticipates, believes, expects, intends, will,
should, may, plans, continue, believes, seeks, estimates, would, could, targets, projects, outlook,
potential, predicts and variations of these words and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. Our actual results and condition could differ
materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in Risk Factors in Part I, Item 1A of our annual report on Form 10-K for
the year ended December 31, 2016 and Part II, Item 1A of and elsewhere in this Form 10-Q.

We
have based the forward-looking statements included in this Form 10-Q on information available to us on the date of this Form 10-Q, and we assume no obligation to update
any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures
that we may make directly to you or through reports that we have filed or in the future may file with the Securities and Exchange Commission (the SEC), including our annual reports on Form 10-K,
quarterly reports on Form 10-Q and current reports on Form 8-K.

OVERVIEW

The following discussion and
analysis of our financial condition and results of operations should be read in conjunction with Part I, Item 1 of this Form 10-Q Financial Statements. This discussion contains forward-looking
statements and involves numerous risks and uncertainties, including, but not limited to those described in Part I, Item 1A of our annual report on Form 10-K for the year ended December 31, 2016 and
Part II, Item 1A of this Form 10-Q Risk Factors. Our actual results could differ materially from those anticipated by such forward-looking statements due to factors discussed under Risk
Factors and Cautionary Statements Regarding Forward-Looking Statements appearing elsewhere in this Form 10-Q.

We are a Maryland corporation formed on February 8, 2012, and structured as an externally managed,
non-diversified closed-end investment company. We have elected to be regulated as a BDC under the Investment Company Act. We have elected to be treated, and intend to
continue to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code.

Our investment objective is to
generate current income and capital appreciation primarily through debt investments in U.S. middle market companies, which we define as companies with approximately $10 million to $100 million of EBITDA. We seek to achieve our investment
objective primarily through direct originations of Middle Market Senior Loans, with the balance of our assets invested in higher yielding investments (which may include unsecured debt, mezzanine debt and investments in equities). We generally make
Middle Market Senior Loans to private U.S. middle market companies that are, in many cases, controlled by private equity firms. Depending on market conditions, we expect that between 70% and 80% of the value of our assets will be invested in Middle
Market Senior Loans. We expect that the composition of our portfolio will change over time given our Investment Advisers view on, among other things, the economic and credit environment (including with respect to interest rates) in which we
are operating.



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We are externally managed by our Investment Adviser, an investment adviser registered under the
Advisers Act. Our Administrator provides the administrative services necessary for us to operate. Both our Investment Adviser and our Administrator are wholly owned subsidiaries of Carlyle Investment Management L.L.C., a subsidiary of Carlyle.

In conducting our investment activities, we believe that we benefit from the significant scale and resources of Carlyle, including our
Investment Adviser and its affiliates. We have operated our business as a BDC since we began our investment activities in May 2013.

Investments

Our level of investment activity can and does vary substantially from period to period depending on many factors, including the
amount of debt available to middle market companies, the general economic environment and the competitive environment for the type of investments we make.

Revenue

We generate revenue
primarily in the form of interest income on debt investments we hold. In addition, we generate income from dividends on direct equity investments, capital gains on the sales of loans and debt and equity securities and various loan origination and
other fees. Our debt investments generally have a stated term of five to eight years and generally bear interest at a floating rate usually determined on the basis of a benchmark such as LIBOR. Interest on these debt investments is generally paid
quarterly. 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 date. The
frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. We may also generate revenue in the form of commitment, origination, amendment,
structuring or due diligence fees, fees for providing managerial assistance and consulting fees.

Expenses

Our primary operating expenses include the payment of: (i) investment advisory fees, including base management fees and incentive fees, to
our Investment Adviser pursuant to an investment advisory agreement (the Investment Advisory Agreement) between us and our Investment Adviser; (ii) costs and other expenses and our allocable portion of overhead incurred by our
Administrator in performing its administrative obligations under an administration agreement (the Administration Agreement) between us and our Administrator; and (iii) other operating expenses as detailed below:



| |  |  | the costs associated with the Private Offering;
| | - |  | -----------------------------------------------



| |  |  | the costs of any other offerings of our common stock and other securities, if any;
| | - |  | ----------------------------------------------------------------------------------



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



| |  |  | expenses, including travel expenses, incurred by our Investment Adviser, or members of our Investment Adviser team managing our investments, or payable to third parties, performing due diligence on prospective portfolio
companies and, if necessary, expenses of enforcing our rights;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the base management fee and any incentive fee payable under our Investment Advisory Agreement;
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | certain costs and expenses relating to distributions paid on our shares;
| | - |  | ------------------------------------------------------------------------



| |  |  | administration fees payable under our Administration Agreement and sub-administration agreements, including related expenses;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------



| |  |  | debt service and other costs of borrowings or other financing arrangements;
| | - |  | ---------------------------------------------------------------------------



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| |  |  | the allocated costs incurred by our Investment Adviser in providing managerial assistance to those portfolio companies that request it;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------



| |  |  | amounts payable to third parties relating to, or associated with, making or holding investments;
| | - |  | ------------------------------------------------------------------------------------------------



| |  |  | the costs associated with subscriptions to data service, research-related subscriptions and expenses and quotation equipment and services used in making or holding investments;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | transfer agent and custodial fees;
| | - |  | ----------------------------------



| |  |  | costs of hedging;
| | - |  | -----------------



| |  |  | commissions and other compensation payable to brokers or dealers;
| | - |  | -----------------------------------------------------------------



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



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



| |  |  | independent director fees and expenses;
| | - |  | ---------------------------------------



| |  |  | costs of preparing financial statements and maintaining books and records, costs of preparing tax returns, costs of Sarbanes-Oxley Act compliance and attestation and costs of filing reports or other documents with the
SEC (or other regulatory bodies), and other reporting and compliance costs, including registration and listing fees, and the compensation of professionals responsible for the preparation or review of the foregoing;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the costs of any reports, proxy statements or other notices to our stockholders (including printing and mailing costs), the costs of any stockholders meetings and the compensation of investor relations personnel
responsible for the preparation of the foregoing and related matters;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the costs of specialty and custom software for monitoring risk, compliance and overall portfolio, including any development costs incurred prior to the filing of our election to be regulated as a BDC;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | our fidelity bond;
| | - |  | ------------------



| |  |  | directors and officers/errors and omissions liability insurance, and any other insurance premiums;
| | - |  | --------------------------------------------------------------------------------------------------



| |  |  | indemnification payments;
| | - |  | -------------------------



| |  |  | direct fees and expenses associated with independent audits, agency, consulting and legal costs; and
| | - |  | ----------------------------------------------------------------------------------------------------



| |  |  | all other expenses incurred by us or our Administrator in connection with administering our business, including our allocable share of certain officers and their staff compensation.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We expect our general and administrative expenses to be relatively stable or to decline as a percentage of total assets during periods of
asset growth and to increase during periods of asset declines.

PORTFOLIO AND INVESTMENT ACTIVITY

As of March 31, 2017, the fair value of our investments was approximately $1,392,545, comprised of 94 investments in 82 portfolio
companies/structured finance obligations/investment fund across 30 industries with 54 sponsors. As of December 31, 2016, the fair value of our investments was approximately $1,422,759, comprised of 98 investments in 86 portfolio
companies/structured finance obligations/investment fund across 29 industries with 57 sponsors.

Based on fair value as of March 31,
2017, our portfolio consisted of approximately 89.6% in secured debt (78.0% in first lien debt (including 12.1% in first lien/last out loans) and 11.6% in second lien debt), 9.6% in Credit Fund, 0.2% in structured finance obligations and 0.6% in
equity investments. Based on fair value as of March 31, 2017, approximately 1% of our debt portfolio was invested in debt bearing a fixed interest rate and approximately 99% of our debt portfolio was invested in debt bearing a floating interest
rate with an interest rate floor.



60



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Based on fair value as of December 31, 2016, our portfolio consisted of approximately 92.2%
in secured debt (80.1% in first lien debt (including 12.9% in first lien/last out loans) and 12.1% in second lien debt), 7.0% in Credit Fund, 0.37% in structured finance obligations and 0.46% in equity investments. Based on fair value as of
December 31, 2016, approximately 1% of our debt portfolio was invested in debt bearing a fixed interest rate and approximately 99% of our debt portfolio was invested in debt bearing a floating interest rate with an interest rate floor.

Our investment activity for the three month periods ended March 31, 2017 and 2016 is presented below (information presented herein is at
amortized cost unless otherwise indicated):



|                                                                     |  |                                   |           |   |                |   |           |  
|-------------------------------------------------------------------- |  | --------------------------------- | --------- | - | -------------- | - | --------- | -
|                                                                     |  | For the three month periods ended |          
|                                                                     |  | March 31, 2017                    |           |   | March 31, 2016 |  
|Investments:                                                         |  |                                   |           |   |                |   |           |  
|Total investments, beginning of period                               |  | $                                 | 1,429,981 |   |                | $ | 1,079,720 |  
|New investments purchased                                            |  |                                   | 152,235   |   |                |   | 132,291   |  
|Net accretion of discount on investments                             |  |                                   | 3,576     |   |                |   | 611       |  
|Net realized gain (loss) on investments                              |  |                                   | (7,694    | ) |                |   | (3,577    | )
|Investments sold or repaid                                           |  |                                   | (183,091  | ) |                |   | (26,159   | )
|                                                                     |  |                                   |           |   |                |   |           |  
|Total Investments, end of period                                     |  | $                                 | 1,395,007 |   |                | $ | 1,182,886 |  
|                                                                     |  |                                   |           |   |                |   |           |  
|Principal amount of investments funded:                              |  |                                   |           |   |                |   |           |  
|First Lien Debt                                                      |  | $                                 | 94,929    |   |                | $ | 100,556   |  
|Second Lien Debt                                                     |  |                                   | 1,800     |   |                |   | 34,000    |  
|Structured Finance Obligations                                       |  |                                   |          |   |                |   |          |  
|Equity Investments                                                   |  |                                   | 1,552     |   |                |   |          |  
|Investment Fund                                                      |  |                                   | 56,160    |   |                |   | 1         |  
|                                                                     |  |                                   |           |   |                |   |           |  
|Total                                                                |  | $                                 | 154,441   |   |                | $ | 134,557   |  
|                                                                     |  |                                   |           |   |                |   |           |  
|Principal amount of investments sold or repaid:                      |  |                                   |           |   |                |   |           |  
|First Lien Debt                                                      |  | $                                 | (154,003  | ) |                | $ | (5,629    | )
|Second Lien Debt                                                     |  |                                   | (13,000   | ) |                |   | (11,000   | )
|Structured Finance Obligations                                       |  |                                   | (5,000    | ) |                |   | (14,200   | )
|Investment Fund                                                      |  |                                   | (22,000   | ) |                |   |          |  
|                                                                     |  |                                   |           |   |                |   |           |  
|Total                                                                |  | $                                 | (194,003  | ) |                | $ | (30,829   | )
|                                                                     |  |                                   |           |   |                |   |           |  
|Number of new funded investments                                     |  |                                   | 17        |   |                |   | 11        |  
|Average amount of new funded investments                             |  | $                                 | 9,085     |   |                | $ | 12,032    |  
|Percentage of new funded debt investments at floating interest rates |  |                                   | 91        | % |                |   | 100       | %
|Percentage of new funded debt investments at fixed interest rates    |  |                                   | 9         | % |                |   | 0         | %

As of March 31, 2017 and December 31, 2016, investments consisted of the following:



|                               |  |                |           |  |                   |   |           |               |  |   |            |  |  |   |           | 
|------------------------------ |  | -------------- | --------- |  | ----------------- | - | --------- | ------------- |  | - | ---------- |  |  | - | --------- | 
|                               |  | March 31, 2017 |           |  | December 31, 2016 |  
|                               |  | AmortizedCost  |           |  | Fair Value        |   |           | AmortizedCost |  |   | Fair Value | 
|First Lien Debt                |  | $              | 1,088,396 |  |                   | $ | 1,085,554 |               |  | $ | 1,145,326  |  |  | $ | 1,139,548 | 
|Second Lien Debt               |  |                | 161,912   |  |                   |   | 161,643   |               |  |   | 172,960    |  |  |   | 171,864   | 
|Structured Finance Obligations |  |                | 6,582     |  |                   |   | 2,776     |               |  |   | 9,239      |  |  |   | 5,216     | 
|Equity Investments             |  |                | 6,572     |  |                   |   | 8,451     |               |  |   | 5,071      |  |  |   | 6,474     | 
|Investment Fund                |  |                | 131,545   |  |                   |   | 134,121   |               |  |   | 97,385     |  |  |   | 99,657    | 
|                               |  |                |           |  |                   |   |           |               |  |   |            |  |  |   |           | 
|Total                          |  | $              | 1,395,007 |  |                   | $ | 1,392,545 |               |  | $ | 1,429,981  |  |  | $ | 1,422,759 | 
|                               |  |                |           |  |                   |   |           |               |  |   |            |  |  |   |           | 



61



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The weighted average yields (1) for our
first and second lien debt, based on the amortized cost and fair value as of March 31, 2017 and December 31, 2016, were as follows:



|                                                |  |                |       |   |                   |  |       |               |  |  |            |   |  |  |       |  
|----------------------------------------------- |  | -------------- | ----- | - | ----------------- |  | ----- | ------------- |  |  | ---------- | - |  |  | ----- | -
|                                                |  | March 31, 2017 |       |   | December 31, 2016 | 
|                                                |  | AmortizedCost  |       |   | Fair Value        |  |       | AmortizedCost |  |  | Fair Value |  
|First Lien Debt (excluding First Lien/Last Out) |  |                | 7.35  | % |                   |  | 7.37  | %             |  |  | 7.09       | % |  |  | 7.15  | %
|First Lien/Last Out Unitranche                  |  |                | 12.00 | % |                   |  | 11.99 | %             |  |  | 12.33      | % |  |  | 12.12 | %
|                                                |  |                |       |   |                   |  |       |               |  |  |            |   |  |  |       |  
|First Lien Debt Total                           |  |                | 8.07  | % |                   |  | 8.09  | %             |  |  | 7.92       | % |  |  | 7.96  | %
|Second Lien Debt                                |  |                | 10.07 | % |                   |  | 10.09 | %             |  |  | 9.97       | % |  |  | 10.04 | %
|                                                |  |                |       |   |                   |  |       |               |  |  |            |   |  |  |       |  
|First and Second Lien Debt Total                |  |                | 8.33  | % |                   |  | 8.35  | %             |  |  | 8.19       | % |  |  | 8.23  | %
|                                                |  |                |       |   |                   |  |       |               |  |  |            |   |  |  |       |  



|(1) | Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of March 31, 2017 and December 31, 2016. Weighted average yield on debt and
income producing securities at fair value is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of OID and market discount earned on accruing debt included in such securities, divided by
(b) total first lien and second lien debt at fair value included in such securities. Weighted average yield on debt and income producing securities at amortized cost is computed as (a) the annual stated interest rate or yield earned plus
the net annual amortization of OID and market discount earned on accruing debt included in such securities, divided by (b) total first lien and second lien debt at amortized cost included in such securities. Actual yields earned over the life
of each investment could differ materially from the yields presented above.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Total weighted average yields (which includes
the effect of accretion of discount and amortization of premiums) of our first and second lien debt investments as measured on an amortized cost basis, increased from 8.19% to 8.33% from December 31, 2016 to March 31, 2017. The increase in
weighted average yields was mainly due to the increase in 90-day LIBOR from 1.00% to 1.15% and from originations of new investments with higher weighted average yields of 9.22% and sales/repayments of existing
investments with lower weighted average yields of 8.45%.

The following table summarizes the fair value of our performing and non-performing investments as of

March 31, 2017 and December 31, 2016:



|               |  |                |           |  |                   |  |        |            |  |   |            |  |  |  |        |  
|-------------- |  | -------------- | --------- |  | ----------------- |  | ------ | ---------- |  | - | ---------- |  |  |  | ------ | -
|               |  | March 31, 2017 |           |  | December 31, 2016 | 
|               |  | Fair Value     |           |  | Percentage        |  |        | Fair Value |  |   | Percentage | 
|Performing     |  | $              | 1,383,687 |  |                   |  | 99.36  | %          |  | $ | 1,415,131  |  |  |  | 99.46  | %
|Non-accrual(1) |  |                | 8,858     |  |                   |  | 0.64   |            |  |   | 7,628      |  |  |  | 0.54   |  
|               |  |                |           |  |                   |  |        |            |  |   |            |  |  |  |        |  
|Total          |  | $              | 1,392,545 |  |                   |  | 100.00 | %          |  | $ | 1,422,759  |  |  |  | 100.00 | %
|               |  |                |           |  |                   |  |        |            |  |   |            |  |  |  |        |  



|(1) | Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will
be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may
be recognized as income or applied to principal depending upon managements judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest has
been paid current and, in managements judgment, likely to remain current. Management may not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of
collection. See Note 2 to the consolidated financial statements included in Part I, Item 1 of this Form 10-Q for more information on the accounting policies.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

See the Consolidated Schedules of Investments as of March 31, 2017 and December 31, 2016 in our consolidated financial statements in
Part I, Item 1 of this Form 10-Q for more information on these investments, including a list of companies and type and amount of investments.



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As part of the monitoring process, our Investment Adviser has developed risk policies pursuant to
which it regularly assesses the risk profile of each of our debt investments and rates each of them based on the following categories, which we refer to as Internal Risk Ratings:

Internal Risk Ratings Definitions



|       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Rating |  | Definition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|1      |  | PerformingLow Risk: Borrower is operating more than 10% ahead of the base case.                                                                                                                                                                                                                                                                                                                                                                                                                  
|       | 
|2      |  | PerformingStable Risk: Borrower is operating within 10% of the base case (above or below). This is the initial rating assigned to all new borrowers.                                                                                                                                                                                                                                                                                                                                             
|       | 
|3      |  | PerformingManagement Notice: Borrower is operating more than 10% below the base case. A financial covenant default may have occurred, but there is a low risk of payment default.                                                                                                                                                                                                                                                                                                                
|       | 
|4      |  | Watch List: Borrower is operating more than 20% below the base case and there is a high risk of covenant default, or it may have already occurred. Payments are current although subject to greater uncertainty, and there is
moderate to high risk of payment default.                                                                                                                                                                                                                           
|       | 
|5      |  | Watch ListPossible Loss: Borrower is operating more than 30% below the base case. At the current level of operations and financial condition, the borrower does not have the ability to service and ultimately repay or
refinance all outstanding debt on current terms. Payment default is very likely or may have occurred. Loss of principal is possible.                                                                                                                                     
|       | 
|6      |  | Watch ListProbable Loss: Borrower is operating more than 40% below the base case, and at the current level of operations and financial condition, the borrower does not have the ability to service and ultimately repay
or refinance all outstanding debt on current terms. Payment default is very likely or may have already occurred. Additionally, the prospects for improvement in the borrowers situation are sufficiently negative that impairment of some or all
principal is probable.

Our Investment Advisers risk rating model is based on evaluating portfolio company performance in
comparison to the base case when considering certain credit metrics including, but not limited to, adjusted EBITDA and net senior leverage as well as specific events including, but not limited to, default and impairment.

Our Investment Adviser monitors and, when appropriate, changes the investment ratings assigned to each debt investment in our portfolio. In
connection with our quarterly valuation process, our Investment Adviser reviews our investment ratings on a regular basis. The following table summarizes the Internal Risk Ratings as of March 31, 2017 and December 31, 2016:



|                             |  |                |         |  |                   |  |        |            |  |   |               |  |  |  |        |  
|---------------------------- |  | -------------- | ------- |  | ----------------- |  | ------ | ---------- |  | - | ------------- |  |  |  | ------ | -
|                             |  | March 31, 2017 |         |  | December 31, 2016 | 
|                             |  | Fair Value     |         |  | % ofFairValue     |  |        | Fair Value |  |   | % ofFairValue | 
|(dollar amounts in millions) |  |                |         |  |                   |  |        |            |  |   |               | 
|Internal Risk Rating 1       |  | $              | 27.5    |  |                   |  | 2.20   | %          |  | $ | 59.3          |  |  |  | 4.52   | %
|Internal Risk Rating 2       |  |                | 1,023.2 |  |                   |  | 82.05  |            |  |   | 1,055.7       |  |  |  | 80.50  |  
|Internal Risk Rating 3       |  |                | 93.7    |  |                   |  | 7.51   |            |  |   | 100.9         |  |  |  | 7.70   |  
|Internal Risk Rating 4       |  |                | 89.4    |  |                   |  | 7.17   |            |  |   | 75.7          |  |  |  | 5.77   |  
|Internal Risk Rating 5       |  |                | 13.4    |  |                   |  | 1.07   |            |  |   | 12.2          |  |  |  | 0.93   |  
|Internal Risk Rating 6       |  |                |        |  |                   |  |       |            |  |   | 7.6           |  |  |  | 0.58   |  
|                             |  |                |         |  |                   |  |        |            |  |   |               |  |  |  |        |  
|Total                        |  | $              | 1,247.2 |  |                   |  | 100.00 | %          |  | $ | 1,311.4       |  |  |  | 100.00 | %
|                             |  |                |         |  |                   |  |        |            |  |   |               |  |  |  |        |  



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As of March 31, 2017 and December 31, 2016, the weighted average Internal Risk Rating
of our debt investment portfolio was 2.2. As of March 31, 2017, 9 of our debt investments, with an aggregate fair value of $102.8 million, were assigned an Internal Risk Rating of 4-6. As of
December 31, 2016, 8 of our debt investments, with an aggregate fair value of $95.5 million, were assigned an Internal Risk Rating of 4-6. As of March 31, 2017 and December 31, 2016, one
first lien debt investment in the portfolio with a fair value of $8.9 million and $7.6 million, respectively, was on non-accrual status, which represented approximately 0.71% and 0.58%, respectively,
of total first and second lien investments at fair value. The remaining first and second lien debt investments were performing and current on their interest payments as of March 31, 2017 and December 31, 2016. During the period ended
March 31, 2017, one investment with fair value of $9.8 million was downgraded to an Internal Risk Rating of 4 due to changes in financial condition and performance of the respective portfolio company. Effective January 31, 2017,
TwentyEighty, Inc. (fka Miller Heiman, Inc.) completed a restructuring whereby the first lien debt held by us, which carried an Internal Risk Rating of 6 as of December 31, 2016, was converted into new term loans and equity. As of
March 31, 2017, the fair value of such new term loans with an Internal Risk Rating of 3 was $2.8 million, an Internal Risk Rating of 4 was $3.8 million, and an Internal Risk Rating of 5 was $2.3 million.

CONSOLIDATED RESULTS OF OPERATIONS

For the three
month periods ended March 31, 2017 and 2016

The net increase or decrease in net assets from operations may vary substantially
from period to period as a result of various factors, including the recognition of realized gains and losses and net change in unrealized appreciation and depreciation. As a result, quarterly comparisons may not be meaningful.

Investment Income

Investment income for
the three month periods ended March 31, 2017 and 2016 were as follows:



|                               |  |                                   |        |  |                |   |        | 
|------------------------------ |  | --------------------------------- | ------ |  | -------------- | - | ------ | 
|                               |  | For the three month periods ended |       
|                               |  | March 31, 2017                    |        |  | March 31, 2016 |  
|First Lien Debt                |  | $                                 | 26,701 |  |                | $ | 16,198 | 
|Second Lien Debt               |  |                                   | 4,169  |  |                |   | 6,424  | 
|Structured Finance Obligations |  |                                   |       |  |                |   | 485    | 
|Equity Investments             |  |                                   | 1      |  |                |   |       | 
|Investment Fund                |  |                                   | 3,209  |  |                |   |       | 
|Cash                           |  |                                   | 19     |  |                |   | 3      | 
|                               |  |                                   |        |  |                |   |        | 
|Total investment income        |  | $                                 | 34,099 |  |                | $ | 23,110 | 
|                               |  |                                   |        |  |                |   |        | 

The increase in investment income for the three month period ended March 31, 2017 from the comparable
period in 2016 was primarily driven by our increasing invested balance, increased fees and other income from amendments and prepayments, and interest and dividend income from Credit Fund. As of March 31, 2017, the size of our portfolio
increased to $1,395,007 from $1,182,886 as of March 31, 2016, at amortized cost, and total principal amount of investments outstanding increased to $1,427,572 from $1,246,092 as of March 31, 2016. As of March 31, 2017, the weighted
average yield of our first and second lien debt increased to 8.33% from 8.14% as of March 31, 2016, on amortized cost.

Interest
income on our first and second lien debt investments is dependent on the composition and credit quality of the portfolio. Generally, we expect the portfolio to generate predictable quarterly interest income based on the terms stated in each
loans credit agreement. As of March 31, 2017, one first lien debt investment in the portfolio was non-performing. The fair value of the loan in the portfolio on
non-accrual status was $8,858, which represents approximately 0.71% of total first and second lien investments at fair value. The remaining first and



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second lien debt investments were performing and current on their interest payments as of March 31, 2017. All first and second lien debt investments were performing and current on their
interest payments as of March 31, 2016. Interest income from structured finance obligations is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows. The effective yield is updated at least
quarterly based on payments received and expected future payments. In estimating these cash flows, there are a number of assumptions that are subject to uncertainties, including the amount and timing of principal payments which are impacted by
prepayments, repurchases, defaults, delinquencies and liquidations of or within the CLO funds that issued the structured finance obligations. These uncertainties are difficult to predict and are subject to future events that could have impacted the
Companys estimates if the information was known at the time of such estimates. As a result, actual results may differ significantly from these estimates.

For the three month periods ended March 31, 2017 and 2016, the Company earned $2,536 and $999, respectively, in other income. The
increase in other income for the three month period ended March 31, 2017 from March 31, 2016 was primarily due to higher syndication fees and prepayment fees resulting from full paydowns on select investments.

Our total dividend and interest income from investments in Credit Fund totaled $3,209 for the three month period ended March 31, 2017. We
did not receive any dividend or interest income from investments in Credit Fund for the three month period ended March 31, 2016. We made our first investment in Credit Fund in February 2016.

Net investment income for the three month periods ended March 31, 2017 and 2016 was as follows:



|                             |  |                                   |         |   |                |   |         |  
|---------------------------- |  | --------------------------------- | ------- | - | -------------- | - | ------- | -
|                             |  | For the three month periods ended |        
|                             |  | March 31, 2017                    |         |   | March 31, 2016 |  
|Total investment income      |  | $                                 | 34,099  |   |                | $ | 23,110  |  
|Net expenses                 |  |                                   | (14,992 | ) |                |   | (11,150 | )
|                             |  |                                   |         |   |                |   |         |  
|Net investment income (loss) |  | $                                 | 19,107  |   |                | $ | 11,960  |  
|                             |  |                                   |         |   |                |   |         |  

Expenses



|                                 |  |                                   |        |   |                |   |        |  
|-------------------------------- |  | --------------------------------- | ------ | - | -------------- | - | ------ | -
|                                 |  | For the three month periods ended |       
|                                 |  | March 31, 2017                    |        |   | March 31, 2016 |  
|Base management fees             |  | $                                 | 5,125  |   |                | $ | 4,140  |  
|Incentive fees                   |  |                                   | 4,777  |   |                |   | 2,990  |  
|Professional fees                |  |                                   | 443    |   |                |   | 431    |  
|Administrative service fees      |  |                                   | 173    |   |                |   | 148    |  
|Interest expense                 |  |                                   | 5,034  |   |                |   | 3,599  |  
|Credit facility fees             |  |                                   | 503    |   |                |   | 599    |  
|Directors fees and expenses     |  |                                   | 103    |   |                |   | 120    |  
|Other general and administrative |  |                                   | 542    |   |                |   | 503    |  
|                                 |  |                                   |        |   |                |   |        |  
|Total expenses                   |  |                                   | 16,700 |   |                |   | 12,530 |  
|Waiver of base management fees   |  |                                   | (1,708 | ) |                |   | (1,380 | )
|                                 |  |                                   |        |   |                |   |        |  
|Net expenses                     |  | $                                 | 14,992 |   |                | $ | 11,150 |  
|                                 |  |                                   |        |   |                |   |        |  



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##### Table of Contents

Interest expense and credit facility fees for the three month periods ended March 31, 2017
and 2016 were comprised of the following:



|                                                |  |                                   |       |  |                |   |       | 
|----------------------------------------------- |  | --------------------------------- | ----- |  | -------------- | - | ----- | 
|                                                |  | For the three month periods ended |      
|                                                |  | March 31, 2017                    |       |  | March 31, 2016 |  
|Interest expense                                |  | $                                 | 5,034 |  |                | $ | 3,599 | 
|Facility unused commitment fee                  |  |                                   | 292   |  |                |   | 361   | 
|Amortization of deferred financing costs        |  |                                   | 181   |  |                |   | 213   | 
|Other fees                                      |  |                                   | 30    |  |                |   | 25    | 
|                                                |  |                                   |       |  |                |   |       | 
|Total interest expense and credit facility fees |  | $                                 | 5,537 |  |                | $ | 4,198 | 
|                                                |  |                                   |       |  |                |   |       | 
|Cash paid for interest expense                  |  | $                                 | 4,952 |  |                | $ | 3,227 | 

The increase in interest expense for the three month period ended March 31, 2017 compared to the
comparable period in 2016 was driven by increased drawings under the Facilities related to increased deployment of capital for investments. For the three month period ended March 31, 2017, the average interest rate increased to 3.12% from 2.70%
for the comparable period in 2016, and average principal debt outstanding increased to $649,532 from $530,170 for the comparable period in 2016.

The increase in base management fees (and related waiver of base management fees) and incentive fees related to
pre-incentive fee net investment income for the three month period ended March 31, 2017 from the comparable period in 2016 were driven by our deployment of capital and increasing invested balance. For the
three month periods ended March 31, 2017 and 2016, base management fees were $3,417 and $2,760, respectively, (net the waiver of $1,708 and $1,380, respectively), incentive fees related to pre-incentive
fee net investment income were $4,777 and $2,990, respectively, and there were no incentive fees related to realized capital gains. The accrual for any capital gains incentive fee under accounting principles generally accepted in the United States
(US GAAP) in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reduction of previously recorded expense if such cumulative amount is less than in the prior period. If
such cumulative amount is negative, then there is no accrual. See Note 4 to the consolidated financial statements included in Part I, Item 1 of this Form 10-Q for more information on the incentive
and base management fees. For the three month periods ended March 31, 2017 and 2016, there were no accrued capital gains incentive fees based upon the cumulative net realized and unrealized appreciation (depreciation) as of March 31, 2017
and 2016, respectively.

Professional fees include legal, rating agencies, audit, tax, valuation, technology and other professional fees
incurred related to the management of the Company. Administrative service fees represent fees paid to the Administrator for our allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the
administration agreement, including our allocable portion of the cost of certain of our executive officers and their respective staff. Other general and administrative expenses include insurance, filing, research, subscriptions and other costs.

Net Realized Gain (Loss) and Net Change in Unrealized Appreciation (Depreciation) on Investments

During the three months ended March 31, 2017 and 2016, we had realized gains on 4 and 3 investments, respectively, totaling approximately
$186 and $11, respectively, which was offset by realized losses on 3 and 3 investments, respectively, totaling approximately $7,880 and $3,588, respectively. During the three month periods ended March 31, 2017 and 2016, the Company had a change
in unrealized appreciation on 57 and 34 investments, respectively, totaling approximately $17,492 and $8,051, respectively, which was offset by a change in unrealized depreciation on 41 and 67 investments, respectively, totaling approximately
$12,732 and $19,142, respectively. In particular, effective January 31, 2017, TwentyEighty, Inc. (fka Miller Heiman, Inc.) completed a restructuring whereby the first lien debt held by us was converted into new term loans and equity. As a
result, $10,943 of unrealized depreciation was reversed and we realized a loss of $7,738 during the period.



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Net realized gain (loss) and net change in unrealized appreciation (depreciation) by the type of
investments for the three month periods ended March 31, 2017 and 2016 were as follows:



|                                                                                                 |  |                                   |        |   |                |   |         |  
|------------------------------------------------------------------------------------------------ |  | --------------------------------- | ------ | - | -------------- | - | ------- | -
|                                                                                                 |  | For the three month periods ended |       
|                                                                                                 |  | March 31, 2017                    |        |   | March 31, 2016 |  
|Net realized gain (loss) on investments                                                          |  | $                                 | (7,694 | ) |                | $ | (3,577  | )
|Net change in unrealized appreciation (depreciation) on investments                              |  |                                   | 4,760  |   |                |   | (11,091 | )
|                                                                                                 |  |                                   |        |   |                |   |         |  
|Net realized gain (loss) and net change in unrealized appreciation (depreciation) on
investments |  | $                                 | (2,934 | ) |                | $ | (14,668 | )
|                                                                                                 |  |                                   |        |   |                |   |         |  

Net realized gain (loss) and net change in unrealized appreciation (depreciation) by the type of investments
for the three month periods ended March 31, 2017 and 2016 were as follows:



|                               |  |                                   |        |   |                                                   |   |       |                         |  |   |                                                   |   |  |   |         |  
|------------------------------ |  | --------------------------------- | ------ | - | ------------------------------------------------- | - | ----- | ----------------------- |  | - | ------------------------------------------------- | - |  | - | ------- | -
|                               |  | For the three month periods ended |       
|                               |  | March 31, 2017                    |        |   | March 31, 2016                                    |  
|Type                           |  | Net realizedgain (loss)           |        |   | Net change inunrealizedappreciation(depreciation) |   |       | Net realizedgain (loss) |  |   | Net change inunrealizedappreciation(depreciation) |  
|First Lien Debt                |  | $                                 | (7,552 | ) |                                                   | $ | 3,205 |                         |  | $ | 4                                                 |   |  | $ | (5,166  | )
|Second Lien Debt               |  |                                   | (3     | ) |                                                   |   | 859   |                         |  |   |                                                  |   |  |   | (5,256  | )
|Structured Finance Obligations |  |                                   | (139   | ) |                                                   |   | 220   |                         |  |   | (3,581                                            | ) |  |   | (1,040  | )
|Equity Investments             |  |                                   |       |   |                                                   |   | 476   |                         |  |   |                                                  |   |  |   | 371     |  
|Investment Fund                |  |                                   |       |   |                                                   |   |      |                         |  |   |                                                  |   |  |   |        |  
|                               |  |                                   |        |   |                                                   |   |       |                         |  |   |                                                   |   |  |   |         |  
|Total                          |  | $                                 | (7,694 | ) |                                                   | $ | 4,760 |                         |  | $ | (3,577                                            | ) |  | $ | (11,091 | )
|                               |  |                                   |        |   |                                                   |   |       |                         |  |   |                                                   |   |  |   |         |  

Net change in unrealized depreciation in our investments for the three months ended March 31, 2017
compared to the comparable period in 2016 was primarily due to changes in various inputs utilized under our valuation methodology, including, but not limited to, market spreads, leverage multiples and borrower ratings.

MIDDLE MARKET CREDIT FUND, LLC

Overview

On February 29, 2016, we and Credit Partners entered into an amended and restated limited liability company agreement, which
was subsequently amended on June 24, 2016 (as amended, the Limited Liability Company Agreement) to co-manage Credit Fund, an unconsolidated Delaware limited liability company. Credit Fund
primarily invests in first lien loans of middle-market companies. Credit Fund is managed by a six-member board of managers, on which we and Credit Partners each have equal representation. Establishing a quorum
for Credit Funds board of managers requires at least four members to be present at a meeting, including at least two of our representatives and two of Credit Partners representatives. We and Credit Partners each have 50% economic
ownership of Credit Fund and have commitments to fund, from time to time, capital of up to $400,000 each. Funding of such commitments generally requires the approval of the board of Credit Fund, including the board members appointed by us. By virtue
of its membership interest, the Company and Credit Partners each indirectly bear an allocable share of all expenses and other obligations of Credit Fund.

Together with Credit Partners, we co-invest through Credit Fund. Investment opportunities for Credit
Fund are sourced primarily by us and our affiliates. Portfolio and investment decisions with respect to Credit Fund must be unanimously approved by a quorum of Credit Funds investment committee consisting of an equal number of representatives
of us and Credit Partners. Therefore, although we own more than 25% of the voting



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securities of Credit Fund, we do not believe that we have control over Credit Fund (other than for purposes of the Investment Company Act). Middle Market Credit Fund SPV, LLC (the Credit
Fund Sub), a Delaware limited liability company, was formed on April 5, 2016. Credit Fund Sub primarily invests in first lien loans of middle-market companies. Credit Fund Sub is a wholly-owned subsidiary of Credit Fund and is
consolidated in Credit Funds consolidated financial statements commencing from the date of its formation. Credit Fund follows the same Internal Risk Rating system as us.

Credit Fund, we and Credit Partners entered into an administration agreement with Carlyle GMS Finance Administration L.L.C., the
administrative agent of Credit Fund (in such capacity, the Administrative Agent), pursuant to which the Administrative Agent is delegated certain administrative and non-discretionary functions, is
authorized to enter into sub-administration agreements at our expense with the approval of the board of managers of Credit Fund, and is reimbursed by Credit Fund for its costs and expenses and Credit
Funds allocable portion of overhead incurred by the Administrative Agent in performing its obligations thereunder.

Selected Financial Data

Since inception of Credit Fund and through March 31, 2017 and December 31, 2016, the Company and Credit Partners each
made capital contributions of $1 in members equity and $45,500 and $35,000, respectively, in subordinated loans to Credit Fund. As of March 31, 2017 and December 31, 2016, Credit Fund had net borrowings of $86,044 and $62,384,
respectively, in mezzanine loans under a revolving credit facility with the Company (the Credit Fund Facility). As of March 31, 2017 and December 31, 2016, Credit Fund had subordinated loans and members capital of $96,155
and $74,547, respectively. As of March 31, 2017 and December 31, 2016, the Companys ownership interest in such subordinated loans and members capital was $48,077 and $37,273, respectively, and in such mezzanine loans was
$86,044 and $62,384, respectively.

As of March 31, 2017 and December 31, 2016, Credit Fund held cash and cash equivalents
totaling $10,533 and $6,103, respectively.

As of March 31, 2017 and December 31, 2016, Credit Fund had total investments at
fair value of $558,694 and $437,829, respectively, which was comprised of first lien senior secured loans and second lien senior secured loans to 35 and 28 portfolio companies, respectively. As of March 31, 2017 and December 31, 2016, no
loans in Credit Funds portfolio were on non-accrual status or contained PIK provisions. All investments in the portfolio were floating rate debt investments. The portfolio companies in Credit Fund are
U.S. middle market companies in industries similar to those in which the Company may invest directly. Additionally, as of March 31, 2017 and December 31, 2016, Credit Fund had commitments to fund various undrawn revolvers and delayed draw
investments to its portfolio companies totaling $32,012 and $30,361, respectively.

Below is a summary of Credit Funds portfolio,
followed by a listing of the loans in Credit Funds portfolio as of March 31, 2017 and December 31, 2016:



|                                                                            |  |                     |         |   |                        |   |         |  
|--------------------------------------------------------------------------- |  | ------------------- | ------- | - | ---------------------- | - | ------- | -
|                                                                            |  | As of March 31,2017 |         |   | As of December 31,2016 |  
|Senior secured loans (1)                                                    |  | $                   | 560,196 |   |                        | $ | 439,086 |  
|Weighted average yields of senior secured loans based on amortized cost (2) |  |                     | 6.53    | % |                        |   | 6.47    | %
|Weighted average yields of senior secured loans based on fair value (2)     |  |                     | 6.46    | % |                        |   | 6.41    | %
|Number of portfolio companies in Credit Fund                                |  |                     | 35      |   |                        |   | 28      |  
|Average amount per portfolio company
(1)                                    |  | $                   | 16,006  |   |                        | $ | 15,682  |  
|Weighted average Internal Risk Rating                                       |  |                     | 2.0     |   |                        |   | 2.0     |  



|(1) | At par/principal amount.
|--- | ------------------------



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|(2) | Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of March 31, 2017 and December 31, 2016. Weighted average yield on debt and
income producing securities at fair value is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of OID and market discount earned on accruing debt included in such securities, divided by
(b) total first lien and second lien debt at fair value included in such securities. Weighted average yield on debt and income producing securities at amortized cost is computed as (a) the annual stated interest rate or yield earned plus
the net annual amortization of OID and market discount earned on accruing debt included in such securities, divided by (b) total first lien and second lien debt at amortized cost included in such securities. Actual yields earned over the life
of each investment could differ materially from the yields presented above.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|                                                                      |  |                                         |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |  |  |   |        | 
|--------------------------------------------------------------------- |  | --------------------------------------- |  | ----------------------- |  | ------------ | ---------- |  | ------------------- | - | ------ | ---------------- |  | - | ------------ |  |  | - | ------ | 
|Consolidated Schedule of Investments as of
March 31, 2017 (unaudited) | 
|Investments(1)                                                        |  | Industry                                |  | Interest Rate(2)        |  | MaturityDate |            |  | Par/PrincipalAmount |   |        | AmortizedCost(5) |  |   | FairValue(6) | 
|First Lien Debt (99.42% of fair value)                                |  |                                         |  |                         |  |              |            |  |                     |   |        |                  |  |   |              | 
|Advanced Instruments,LLC (2) (3) (4) (10)
(11)                        |  | Health &Pharmaceuticals                 |  | L + 5.25% (1.00% Floor) |  |              | 10/31/2022 |  |                     | $ | 12,000 |                  |  | $ | 11,867       |  |  | $ | 11,972 | 
|AM Conservation Holding Corporation (2) (3)
(4)                       |  | Energy: Electricity                     |  | L + 4.75% (1.00% Floor) |  |              | 10/31/2022 |  |                     |   | 29,925 |                  |  |   | 29,657       |  |  |   | 30,185 | 
|Anaren, Inc (2) (3) (4)                                               |  | Telecommunications                      |  | L + 4.50% (1.00% Floor) |  |              | 2/18/2021  |  |                     |   | 6,963  |                  |  |   | 6,935        |  |  |   | 6,963  | 
|Borchers, Inc (2) (3) (4) (7) (10)
(11)                               |  | Chemicals,Plastics & Rubber             |  | L + 4.75% (1.00% Floor) |  |              | 1/13/2024  |  |                     |   | 8,142  |                  |  |   | 8,096        |  |  |   | 8,170  | 
|Datapipe, Inc. (2) (3) (4) (11)                                       |  | Telecommunications                      |  | L + 4.75% (1.00% Floor) |  |              | 3/15/2019  |  |                     |   | 9,725  |                  |  |   | 9,650        |  |  |   | 9,753  | 
|DBI Holding LLC (2) (3) (4)                                           |  | Business Services                       |  | L + 5.25% (1.00% Floor) |  |              | 8/1/2021   |  |                     |   | 19,950 |                  |  |   | 19,774       |  |  |   | 19,754 | 
|Dent Wizard International Corporation (2) (3)
(4) (11)                |  | Automotive                              |  | L + 4.75% (1.00% Floor) |  |              | 4/7/2020   |  |                     |   | 15,000 |                  |  |   | 14,861       |  |  |   | 14,984 | 
|Dimora Brands, Inc. (fka TK USA Enterprises,Inc.)
(2) (3) (4) (11)    |  | Construction &Building                  |  | L + 4.50% (1.00% Floor) |  |              | 4/4/2023   |  |                     |   | 19,800 |                  |  |   | 19,539       |  |  |   | 19,743 | 
|Diversitech Corporation (2) (4) (10)                                  |  | Capital Equipment                       |  | P + 3.50%               |  |              | 11/19/2021 |  |                     |   | 14,766 |                  |  |   | 14,589       |  |  |   | 14,766 | 
|DTI Holdco, Inc.(2) (3) (4) (7)                                       |  | High TechIndustries                     |  | L + 5.25% (1.00% Floor) |  |              | 9/30/2023  |  |                     |   | 19,900 |                  |  |   | 19,704       |  |  |   | 19,639 | 
|EAG, Inc. (2) (3) (4) (11)                                            |  | Business Services                       |  | L + 4.25% (1.00% Floor) |  |              | 7/28/2018  |  |                     |   | 8,440  |                  |  |   | 8,430        |  |  |   | 8,469  | 
|EIP Merger Sub, LLC(Evolve IP) (2) (3) (4)
(8) (11)                   |  | Telecommunications                      |  | L + 6.25% (1.00% Floor) |  |              | 6/7/2021   |  |                     |   | 22,894 |                  |  |   | 22,280       |  |  |   | 22,539 | 
|EIP Merger Sub, LLC(Evolve IP) (2) (3) (4)
(9) (11)                   |  | Telecommunications                      |  | L + 6.25% (1.00% Floor) |  |              | 6/7/2021   |  |                     |   | 1,500  |                  |  |   | 1,458        |  |  |   | 1,475  | 
|Empower Payments Acquisitions,Inc. (2) (3)
(7)                        |  | Media: Advertising,Printing &Publishing |  | L + 5.50% (1.00% Floor) |  |              | 11/30/2023 |  |                     |   | 17,456 |                  |  |   | 17,115       |  |  |   | 17,411 | 
|Jensen Hughes,Inc. (2) (3) (4) (10)
(11)                              |  | Utilities: Electric                     |  | L + 5.00% (1.00% Floor) |  |              | 12/4/2021  |  |                     |   | 20,408 |                  |  |   | 20,197       |  |  |   | 20,275 | 
|Kestra Financial, Inc.(2) (3)
(4)                                     |  | Banking, Finance,Insurance & RealEstate |  | L + 5.25% (1.00% Floor) |  |              | 6/24/2022  |  |                     |   | 19,850 |                  |  |   | 19,593       |  |  |   | 19,725 | 
|MSHC, Inc. (2) (3) (4) (10)                                           |  | Construction &Building                  |  | L + 5.00% (1.00% Floor) |  |              | 7/19/2021  |  |                     |   | 13,543 |                  |  |   | 13,440       |  |  |   | 13,423 | 
|PAI Holdco, Inc. (Parts Authority) (2) (3)
(4)                        |  | Automotive                              |  | L + 4.75% (1.00% Floor) |  |              | 12/30/2022 |  |                     |   | 9,925  |                  |  |   | 9,864        |  |  |   | 9,925  | 
|Paradigm AcquisitionCorp. (2) (3)
(4)                                 |  | Business Services                       |  | L + 5.00% (1.00% Floor) |  |              | 6/2/2022   |  |                     |   | 11,970 |                  |  |   | 11,874       |  |  |   | 11,970 | 
|Pasternack Enterprises, Inc. (Infinite RF)
(2) (3) (4)                |  | Capital Equipment                       |  | L + 5.00% (1.00% Floor) |  |              | 5/27/2022  |  |                     |   | 11,910 |                  |  |   | 11,817       |  |  |   | 11,885 | 
|PSI ServicesLLC (2) (3) (4) (7)
(10)                                  |  | Business Services                       |  | L + 5.00% (1.00% Floor) |  |              | 1/19/2023  |  |                     |   | 29,623 |                  |  |   | 29,052       |  |  |   | 29,333 | 
|Q Holding Company (2) (3) (4)                                         |  | Automotive                              |  | L + 5.00% (1.00% Floor) |  |              | 12/18/2021 |  |                     |   | 13,929 |                  |  |   | 13,798       |  |  |   | 13,958 | 
|QW Holding Corporation(Quala) (2) (3) (4)
(7) (10)                    |  | EnvironmentalIndustries                 |  | L + 6.75% (1.00% Floor) |  |              | 8/31/2022  |  |                     |   | 10,983 |                  |  |   | 10,447       |  |  |   | 11,121 | 
|Ramundsen Public Sector,LLC (2) (3)
(4)                               |  | Sovereign & PublicFinance               |  | L + 4.25% (1.00% Floor) |  |              | 2/1/2024   |  |                     |   | 4,000  |                  |  |   | 3,983        |  |  |   | 4,008  | 
|RelaDyne Inc. (2) (3) (4) (10)                                        |  | Wholesale                               |  | L + 5.25% (1.00% Floor) |  |              | 7/22/2022  |  |                     |   | 26,228 |                  |  |   | 25,834       |  |  |   | 25,978 | 
|Restaurant Technologies,Inc. (2) (3)
(4)                              |  | Retail                                  |  | L + 4.75% (1.00% Floor) |  |              | 11/23/2022 |  |                     |   | 14,000 |                  |  |   | 13,876       |  |  |   | 14,021 | 
|Systems Maintenance Services Holding,
Inc. (2) (3) (4) (11)           |  | High TechIndustries                     |  | L + 5.00% (1.00% Floor) |  |              | 10/30/2023 |  |                     |   | 24,439 |                  |  |   | 24,266       |  |  |   | 24,561 | 
|T2 Systems Canada, Inc. (2) (3) (4)                                   |  | Transportation:Consumer                 |  | L + 6.75% (1.00% Floor) |  |              | 9/28/2022  |  |                     |   | 2,693  |                  |  |   | 2,630        |  |  |   | 2,696  | 
|T2 Systems,
Inc. (2) (3) (4) (10)                                     |  | Transportation:Consumer                 |  | L + 6.75% (1.00% Floor) |  |              | 9/28/2022  |  |                     |   | 15,262 |                  |  |   | 14,865       |  |  |   | 15,282 | 
|Teaching Strategies,LLC (2) (3) (4)
(10)                              |  | Media: Advertising,Printing &Publishing |  | L + 4.75% (1.00% Floor) |  |              | 2/27/2023  |  |                     |   | 18,100 |                  |  |   | 17,915       |  |  |   | 17,980 | 
|The Original Cakerie, Ltd.
(Canada) (2) (3) (4) (10) (11)             |  | Beverage, Food &Tobacco                 |  | L + 5.00% (1.00% Floor) |  |              | 7/20/2021  |  |                     |   | 6,992  |                  |  |   | 6,932        |  |  |   | 6,992  | 
|The Original Cakerie, Co. (Canada) (2) (3)
(4) (11)                   |  | Beverage, Food &Tobacco                 |  | L + 5.50% (1.00% Floor) |  |              | 7/20/2021  |  |                     |   | 3,612  |                  |  |   | 3,585        |  |  |   | 3,612  | 
|U.S. Acute Care Solutions,
LLC (2) (3) (4)                            |  | Healthcare &Pharmaceuticals             |  | L + 5.00% (1.00% Floor) |  |              | 5/15/2021  |  |                     |   | 26,334 |                  |  |   | 26,099       |  |  |   | 26,275 | 



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|                                                                      |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  |              |         |  |  |   |         | 
|--------------------------------------------------------------------- |  | -------- | --------------------------- |  | ---------------- | ----------------------- | ------------ |  | ---------- | ------------------- |  | - | ---------------- |  |  | ------------ | ------- |  |  | - | ------- | 
|Consolidated Schedule of Investments as of
March 31, 2017 (unaudited) | 
|Investments(1)                                                        |  | Industry |                             |  | Interest Rate(2) |                         | MaturityDate |  |            | Par/PrincipalAmount |  |   | AmortizedCost(5) |  |  | FairValue(6) |        
|First Lien Debt (99.42% of fair value) (continued)                    |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  |             
|U.S. Anesthesia Partners,Inc. (2) (3)
(4) (11)                        |  |          | Healthcare &Pharmaceuticals |  |                  | L + 5.00% (1.00% Floor) |              |  | 12/31/2019 |                     |  | $ | 10,348           |  |  | $            | 10,257  |  |  | $ | 10,366  | 
|Vantage Specialty Chemicals,
Inc. (2) (3) (4) (11)                    |  |          | Chemicals,Plastics & Rubber |  |                  | L + 4.50% (1.00% Floor) |              |  | 2/5/2021   |                     |  |   | 17,865           |  |  |              | 17,748  |  |  |   | 17,775  | 
|WIRBCopernicus Group,Inc. (2) (3)
(4)                                |  |          | Healthcare &Pharmaceuticals |  |                  | L + 5.00% (1.00% Floor) |              |  | 8/12/2022  |                     |  |   | 12,315           |  |  |              | 12,232  |  |  |   | 12,281  | 
|Zest
Holdings,LLC (2) (3) (4)                                         |  |          | Durable ConsumerGoods       |  |                  | L + 4.75% (1.00% Floor) |              |  | 8/16/2020  |                     |  |   | 8,700            |  |  |              | 8,661   |  |  |   | 8,693   | 
|Zywave, Inc. (2) (3) (4)
(7) (10)                                     |  |          | High TechIndustries         |  |                  | L + 5.00% (1.00% Floor) |              |  | 11/17/2022 |                     |  |   | 17,456           |  |  |              | 17,279  |  |  |   | 17,494  | 
|                                                                      |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  |              |         |  |  |   |         | 
|First Lien Debt Total                                                 |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  | $            | 550,199 |  |  | $ | 555,452 | 
|                                                                      |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  |              |         |  |  |   |         | 
|Second Lien Debt (0.58% of fair value)                                |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  |              |         |  |  |   |         | 
|Ramundsen Public
Sector,LLC (2) (3) (4) (7)                           |  |          | Sovereign & PublicFinance   |  |                  | L + 8.50% (1.00% Floor) |              |  | 1/31/2025  |                     |  | $ | 200              |  |  | $            | 198     |  |  | $ | 200     | 
|Vantage Specialty
Chemicals,Inc.(2) (3) (4) (11)                      |  |          | Chemicals,Plastics & Rubber |  |                  | L + 8.75% (1.00% Floor) |              |  | 2/5/2022   |                     |  |   | 2,000            |  |  |              | 1,969   |  |  |   | 1,992   | 
|Zywave,
Inc. (2) (3) (4)                                              |  |          | High TechIndustries         |  |                  | L + 9.00% (1.00% Floor) |              |  | 11/17/2023 |                     |  |   | 1,050            |  |  |              | 1,035   |  |  |   | 1,050   | 
|                                                                      |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  |              |         |  |  |   |         | 
|Second Lien Debt Total                                                |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  | $            | 3,202   |  |  | $ | 3,242   | 
|                                                                      |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  |              |         |  |  |   |         | 
|Total Investments                                                     |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  | $            | 553,401 |  |  | $ | 558,694 | 
|                                                                      |  |          |                             |  |                  |                         |              |  |            |                     |  |   |                  |  |  |              |         |  |  |   |         | 



|(1) | Unless otherwise indicated, issuers of investments held by Credit Fund are domiciled in the United States. As of March 31, 2017, the geographical composition of investments as a percentage of fair value was 1.90%
in Canada and 98.10% in the United States.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Variable rate loans to the portfolio companies bear interest at a rate that may be determined by reference to either LIBOR (L) or an alternate base rate (commonly based on the Federal Funds Rate or the U.S.
Prime Rate (P)), which generally resets quarterly. For each such loan, Credit Fund has provided the interest rate in effect as of March 31, 2017. As of March 31, 2017, all of Credit Funds LIBOR loans were indexed to the 90-day LIBOR rate at 1.15%, except for those loans as indicated in Note 11 below, and the U.S. Prime Rate loan was indexed at 4.00%.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Loan includes interest rate floor feature.
|--- | ------------------------------------------

|(4) | Denotes that all or a portion of the assets are owned by Credit Fund Sub. Credit Fund Sub has entered into a revolving credit facility (the Credit Fund Sub Facility). The lenders of the Credit Fund Sub
Facility have a first lien security interest in substantially all of the assets of Credit Fund Sub. Accordingly, such assets are not available to creditors of Credit Fund.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable,
on debt investments using the effective interest method.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Fair value is determined in good faith by or under the direction of the board of managers of Credit Fund, pursuant to Credit Funds valuation policy, which is substantially similar to the valuation policy of the
Company provided in Critical Accounting PoliciesFair Value Measurements.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | Denotes that all or a portion of the assets are owned by Credit Fund. Credit Fund has entered into the Credit Fund Facility. The lenders of the Credit Fund Facility have a first lien security interest in substantially
all of the assets of Credit Fund. Accordingly, such assets are not available to creditors of Credit Fund Sub.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | Credit Fund receives less than the stated interest rate of this loan as a result of an agreement among lenders. The interest rate reduction is 1.25% on EIP Merger Sub, LLC (Evolve IP). Pursuant to the agreement among
lenders in respect of this loan, this investment represents a first lien/first out loan, which has first priority ahead of the first lien/last out loan with respect to principal, interest and other payments.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|(9) | In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among
lenders as follows: EIP Merger Sub, LLC (Evolve IP) (3.91)%. Pursuant to the agreement among lenders in respect of this loan, this investment represents a first lien/last out loan, which has a secondary priority behind the first lien/first out loan
with respect to principal, interest and other payments.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(10) | As of March 31, 2017, Credit Fund had the following unfunded commitments to fund delayed draw and revolving senior secured loans:
|---- | ---------------------------------------------------------------------------------------------------------------------------------



|                                                                          |  |      |              |  |            |  |      |                     |  |   |            |  |  |   |     |  
|------------------------------------------------------------------------- |  | ---- | ------------ |  | ---------- |  | ---- | ------------------- |  | - | ---------- |  |  | - | --- | -
|First Lien Debtunfunded delayed draw andrevolving term loans
commitments |  | Type |              |  | Unused Fee |  |      | Par/PrincipalAmount |  |   | Fair Value | 
|Advanced Instruments, LLC                                                 |  |      | Revolver     |  |            |  | 1.00 | %                   |  | $ | 1,333      |  |  | $ | (3  | )
|Borchers, Inc.                                                            |  |      | Revolver     |  |            |  | 1.00 | %                   |  |   | 1,858      |  |  |   | 5   |  
|Diversitech Corporation                                                   |  |      | Delayed Draw |  |            |  | 1.00 | %                   |  |   | 5,000      |  |  |   |    |  
|Jensen Hughes, Inc.                                                       |  |      | Delayed Draw |  |            |  | 0.50 | %                   |  |   | 1,461      |  |  |   | (8  | )
|Jensen Hughes, Inc.                                                       |  |      | Revolver     |  |            |  | 0.50 | %                   |  |   | 2,000      |  |  |   | (11 | )
|MSHC, Inc.                                                                |  |      | Delayed Draw |  |            |  | 1.50 | %                   |  |   | 1,399      |  |  |   | (11 | )
|PSI Services LLC                                                          |  |      | Revolver     |  |            |  | 1.00 | %                   |  |   | 377        |  |  |   | (4  | )
|QW Holding Corporation (Quala)                                            |  |      | Delayed Draw |  |            |  | 1.00 | %                   |  |   | 4,762      |  |  |   | 33  |  
|QW Holding Corporation (Quala)                                            |  |      | Revolver     |  |            |  | 1.00 | %                   |  |   | 4,234      |  |  |   | 29  |  
|RelaDyne Inc.                                                             |  |      | Delayed Draw |  |            |  | 0.50 | %                   |  |   | 135        |  |  |   | (1  | )
|RelaDyne Inc.                                                             |  |      | Revolver     |  |            |  | 0.50 | %                   |  |   | 2,433      |  |  |   | (21 | )
|T2 Systems, Inc.                                                          |  |      | Revolver     |  |            |  | 1.00 | %                   |  |   | 1,955      |  |  |   | 2   |  
|Teaching Strategies, LLC                                                  |  |      | Revolver     |  |            |  | 1.00 | %                   |  |   | 1,900      |  |  |   | (11 | )
|The Original Cakerie, Ltd. (Canada)                                       |  |      | Revolver     |  |            |  | 0.50 | %                   |  |   | 1,665      |  |  |   |    |  
|Zywave, Inc.                                                              |  |      | Revolver     |  |            |  | 0.50 | %                   |  |   | 1,500      |  |  |   | 3   |  
|                                                                          |  |      |              |  |            |  |      |                     |  |   |            |  |  |   |     |  
|Total unfunded commitments                                                |  |      |              |  |            |  |      |                     |  | $ | 32,012     |  |  | $ | 2   |  
|                                                                          |  |      |              |  |            |  |      |                     |  |   |            |  |  |   |     |  



|(11) | As of March 31, 2017, this LIBOR loan was indexed to the 30-day LIBOR rate at 0.98%.
|---- | ------------------------------------------------------------------------------------



72



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|                                                                   |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |  |  |   |         | 
|------------------------------------------------------------------ |  | ----------------------------------------- |  | ----------------------- |  | ------------ | ---------- |  | ------------------- | - | ------ | ---------------- |  | - | ------------ |  |  | - | ------- | 
|Consolidated Schedule of Investments as of
December 31, 2016       | 
|Investments(1)                                                     |  | Industry                                  |  | Interest Rate(2)        |  | MaturityDate |            |  | Par/PrincipalAmount |   |        | AmortizedCost(5) |  |   | FairValue(6) | 
|First Lien Debt (99.31% of fair value)                             |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |  |  |  
|AM Conservation Holding Corporation (2) (3)
(4)                    |  | Energy: Electricity                       |  | L + 4.75% (1.00% Floor) |  |              | 10/31/2022 |  |                     | $ | 30,000 |                  |  | $ | 29,721       |  |  | $ | 29,925  | 
|Datapipe, Inc. (2) (3) (4) (11)                                    |  | Telecommunications                        |  | L + 4.75% (1.00% Floor) |  |              | 3/15/2019  |  |                     |   | 9,750  |                  |  |   | 9,654        |  |  |   | 9,764   | 
|Dimora Brands, Inc. (fka TK USA Enterprises,
Inc.)(2) (3) (4) (11) |  | Construction & Building                   |  | L + 4.50% (1.00% Floor) |  |              | 4/4/2023   |  |                     |   | 19,850 |                  |  |   | 19,580       |  |  |   | 19,723  | 
|Diversitech
Corporation (2) (4) (10) (11)                          |  | Capital Equipment                         |  | P + 3.50%               |  |              | 11/19/2021 |  |                     |   | 14,803 |                  |  |   | 14,617       |  |  |   | 14,803  | 
|DTI Holdco, Inc. (2) (3) (4) (7)                                   |  | High Tech Industries                      |  | L + 5.25% (1.00% Floor) |  |              | 9/30/2023  |  |                     |   | 19,950 |                  |  |   | 19,751       |  |  |   | 19,651  | 
|DYK Prime Acquisition LLC (2) (3)
(4)                              |  | Chemicals, Plastics & Rubber              |  | L + 4.75% (1.00% Floor) |  |              | 4/1/2022   |  |                     |   | 5,775  |                  |  |   | 5,735        |  |  |   | 5,775   | 
|EAG, Inc. (2) (3) (4) (11)                                         |  | Business Services                         |  | L + 4.25% (1.00% Floor) |  |              | 7/28/2018  |  |                     |   | 8,713  |                  |  |   | 8,686        |  |  |   | 8,720   | 
|EIP Merger Sub, LLC (Evolve IP) (2) (3) (4)
(8)                    |  | Telecommunications                        |  | L + 6.25% (1.00% Floor) |  |              | 6/7/2021   |  |                     |   | 22,971 |                  |  |   | 22,323       |  |  |   | 22,509  | 
|EIP Merger Sub, LLC (Evolve IP) (2) (3) (4)
(9)                    |  | Telecommunications                        |  | L + 6.25% (1.00% Floor) |  |              | 6/7/2021   |  |                     |   | 1,500  |                  |  |   | 1,455        |  |  |   | 1,468   | 
|Empower Payments Acquisitions,Inc. (2) (3)
(7)                     |  | Media: Advertising, Printing & Publishing |  | L + 5.50% (1.00% Floor) |  |              | 11/30/2023 |  |                     |   | 17,500 |                  |  |   | 17,154       |  |  |   | 17,279  | 
|Generation Brands Holdings, Inc. (2) (3) (4)                       |  | Durable Consumer Goods                    |  | L + 5.00% (1.00% Floor) |  |              | 6/10/2022  |  |                     |   | 19,900 |                  |  |   | 19,712       |  |  |   | 20,099  | 
|Jensen Hughes,Inc. (2) (3) (4)
(10)                                |  | Utilities: Electric                       |  | L + 5.00% (1.00% Floor) |  |              | 12/4/2021  |  |                     |   | 20,409 |                  |  |   | 20,188       |  |  |   | 20,327  | 
|Kestra Financial,Inc.(2) (3)
(4)                                   |  | Banking, Finance, Insurance & Real Estate |  | L + 5.25% (1.00% Floor) |  |              | 6/24/2022  |  |                     |   | 19,900 |                  |  |   | 19,632       |  |  |   | 19,814  | 
|MSHC, Inc.(2) (3) (4) (10)                                         |  | Construction & Building                   |  | L + 5.00% (1.00% Floor) |  |              | 7/19/2021  |  |                     |   | 13,177 |                  |  |   | 13,062       |  |  |   | 13,003  | 
|PAI Holdco, Inc. (Parts Authority)(2) (3)
(4)                      |  | Automotive                                |  | L + 4.75% (1.00% Floor) |  |              | 12/30/2022 |  |                     |   | 9,950  |                  |  |   | 9,886        |  |  |   | 9,950   | 
|Pasternack Enterprises, Inc. (Infinite RF)(2)
(3) (4)              |  | Capital Equipment                         |  | L + 5.00% (1.00% Floor) |  |              | 5/27/2022  |  |                     |   | 11,941 |                  |  |   | 11,844       |  |  |   | 11,941  | 
|Q HoldingCompany (2) (3) (4)                                       |  | Automotive                                |  | L + 5.00% (1.00% Floor) |  |              | 12/18/2021 |  |                     |   | 13,964 |                  |  |   | 13,828       |  |  |   | 13,941  | 
|QW Holding Corporation (Quala)(2) (3) (4) (7)
(10)                 |  | Environmental Industries                  |  | L + 6.75% (1.00% Floor) |  |              | 8/31/2022  |  |                     |   | 8,975  |                  |  |   | 8,413        |  |  |   | 9,030   | 
|Restaurant Technologies, Inc. (2) (3) (4)                          |  | Retail                                    |  | L + 4.75% (1.00% Floor) |  |              | 11/23/2022 |  |                     |   | 23,514 |                  |  |   | 23,117       |  |  |   | 23,443  | 
|RelaDyne Inc. (2) (3) (4) (10)                                     |  | Wholesale                                 |  | L + 5.25% (1.00% Floor) |  |              | 7/22/2022  |  |                     |   | 14,000 |                  |  |   | 13,871       |  |  |   | 13,969  | 
|Systems Maintenance Services Holding,
Inc. (2) (3) (4)             |  | High Tech Industries                      |  | L + 5.00% (1.00% Floor) |  |              | 10/30/2023 |  |                     |   | 12,000 |                  |  |   | 11,885       |  |  |   | 12,001  | 
|T2 Systems Canada,
Inc. (2) (3) (4) (11)                           |  | Transportation: Consumer                  |  | L + 6.75% (1.00% Floor) |  |              | 9/28/2022  |  |                     |   | 2,700  |                  |  |   | 2,635        |  |  |   | 2,727   | 
|T2 Systems,Inc. (2) (3) (4) (10)
(11)                              |  | Transportation: Consumer                  |  | L + 6.75% (1.00% Floor) |  |              | 9/28/2022  |  |                     |   | 15,300 |                  |  |   | 14,888       |  |  |   | 15,473  | 
|The Original Cakerie, Ltd. (Canada) (2) (3) (4)
(10)               |  | Beverage, Food & Tobacco                  |  | L + 5.00% (1.00% Floor) |  |              | 7/20/2021  |  |                     |   | 7,009  |                  |  |   | 6,946        |  |  |   | 7,009   | 
|The Original Cakerie, Co. (Canada) (2) (3) (4)                     |  | Beverage, Food & Tobacco                  |  | L + 5.50% (1.00% Floor) |  |              | 7/20/2021  |  |                     |   | 3,621  |                  |  |   | 3,591        |  |  |   | 3,621   | 
|U.S. Acute Care Solutions, LLC (2) (3)
(4)                         |  | Health & Pharmaceuticals                  |  | L + 5.00% (1.00% Floor) |  |              | 5/15/2021  |  |                     |   | 26,400 |                  |  |   | 26,154       |  |  |   | 26,336  | 
|U.S. Anesthesia Partners, Inc. (2) (3)
(4)                         |  | Health & Pharmaceuticals                  |  | L + 5.00% (1.00% Floor) |  |              | 12/31/2019 |  |                     |   | 10,374 |                  |  |   | 10,275       |  |  |   | 10,362  | 
|Vantage Specialty Chemicals,Inc.(2) (3) (4)
(11)                   |  | Chemicals, Plastics & Rubber              |  | L + 4.50% (1.00% Floor) |  |              | 2/5/2021   |  |                     |   | 17,910 |                  |  |   | 17,786       |  |  |   | 17,903  | 
|WIRBCopernicus Group, Inc. (2) (3)
(4)                            |  | Health & Pharmaceuticals                  |  | L + 5.00% (1.00% Floor) |  |              | 8/12/2022  |  |                     |   | 7,980  |                  |  |   | 7,916        |  |  |   | 8,050   | 
|Zest Holdings,LLC (2) (3) (4)                                      |  | Durable Consumer Goods                    |  | L + 4.75% (1.00% Floor) |  |              | 8/16/2020  |  |                     |   | 8,700  |                  |  |   | 8,658        |  |  |   | 8,749   | 
|Zywave, Inc. (2) (3) (4) (7) (10)                                  |  | High Tech Industries                      |  | L + 5.00% (1.00% Floor) |  |              | 11/17/2022 |  |                     |   | 17,500 |                  |  |   | 17,315       |  |  |   | 17,434  | 
|                                                                   |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |  |  |   |         | 
|First Lien Debt Total                                              |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  | $ | 430,278      |  |  | $ | 434,799 | 
|                                                                   |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |  |  |   |         | 
|Second Lien Debt (0.69% of fair value)                             |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |  |  |  
|Vantage Specialty Chemicals,Inc.(2) (3) (4)
(11)                   |  | Chemicals, Plastics & Rubber              |  | L + 8.75% (1.00% Floor) |  |              | 2/5/2022   |  |                     | $ | 2,000  |                  |  | $ | 1,960        |  |  | $ | 1,987   | 
|Zywave, Inc. (2) (3) (4)                                           |  | High Tech Industries                      |  | L + 9.00% (1.00% Floor) |  |              | 11/17/2023 |  |                     |   | 1,050  |                  |  |   | 1,034        |  |  |   | 1,043   | 
|                                                                   |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |  |  |   |         | 
|Second Lien Debt Total                                             |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  | $ | 2,994        |  |  | $ | 3,030   | 
|                                                                   |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |  |  |   |         | 
|Total Investments                                                  |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  | $ | 433,272      |  |  | $ | 437,829 | 
|                                                                   |  |                                           |  |                         |  |              |            |  |                     |   |        |                  |  |   |              |  |  |   |         | 



73



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|(1) | Unless otherwise indicated, issuers of investments held by Credit Fund are domiciled in the United States. As of December 31, 2016, the geographical composition of investments as a percentage of fair value was
2.43% in Canada and 97.57% in the United States.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Variable rate loans to the portfolio companies bear interest at a rate that may be determined by reference to either LIBOR (L) or an alternate base rate (commonly based on the Federal Funds Rate or the U.S.
Prime Rate (P)), which generally resets quarterly. For each such loan, Credit Fund has provided the interest rate in effect as of December 31, 2016. As of December 31, 2016, all of Credit Funds LIBOR loans were indexed to
the 90-day LIBOR rate at 1.00%, except for those loans as indicated in Note 11 below, and the U.S. Prime Rate loan was indexed at 3.75%.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Loan includes interest rate floor feature.
|--- | ------------------------------------------

|(4) | Denotes that all or a portion of the assets are owned by Credit Fund Sub. Credit Fund Sub has entered into a revolving credit facility (the Credit Fund Sub Facility). The lenders of the Credit Fund Sub
Facility have a first lien security interest in substantially all of the assets of Credit Fund Sub. Accordingly, such assets are not available to creditors of Credit Fund.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable,
on debt investments using the effective interest method.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Fair value is determined in good faith by or under the direction of the board of managers of Credit Fund, pursuant to Credit Funds valuation policy, which is substantially similar to the valuation policy of the
Company provided in Critical Accounting PoliciesFair Value Measurements.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | Denotes that all or a portion of the assets are owned by Credit Fund. Credit Fund has entered into the Credit Fund Facility. The lenders of the Credit Fund Facility have a first lien security interest in substantially
all of the assets of Credit Fund. Accordingly, such assets are not available to creditors of Credit Fund Sub.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | Credit Fund receives less than the stated interest rate of this loan as a result of an agreement among lenders. The interest rate reduction is 1.25% on EIP Merger Sub, LLC (Evolve IP). Pursuant to the agreement among
lenders in respect of this loan, this investment represents a first lien/first out loan, which has first priority ahead of the first lien/last out loan with respect to principal, interest and other payments.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(9) | In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among
lenders as follows: EIP Merger Sub, LLC (Evolve IP) (3.84%). Pursuant to the agreement among lenders in respect of this loan, this investment represents a first lien/last out loan, which has a secondary priority behind the first lien/first out loan
with respect to principal, interest and other payments.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(10) | As of December 31, 2016, Credit Fund had the following unfunded commitments to fund delayed draw and revolving senior secured loans:
|---- | ------------------------------------------------------------------------------------------------------------------------------------



|                                                                          |  |              |  |           |      |   |                     |   |        |           |  |   |     |  
|------------------------------------------------------------------------- |  | ------------ |  | --------- | ---- | - | ------------------- | - | ------ | --------- |  | - | --- | -
|First Lien Debtunfunded delayed drawand revolving term loans
commitments |  | Type         |  | UnusedFee |      |   | Par/PrincipalAmount |   |        | FairValue | 
|Diversitech Corporation                                                   |  | Delayed Draw |  |           | 1.00 | % |                     | $ | 5,000  |           |  | $ |    |  
|Jensen Hughes, Inc.                                                       |  | Revolver     |  |           | 0.50 | % |                     |   | 2,000  |           |  |   | (7  | )
|Jensen Hughes, Inc.                                                       |  | Delayed Draw |  |           | 0.50 | % |                     |   | 1,461  |           |  |   | (5  | )
|MSHC, Inc.                                                                |  | Delayed Draw |  |           | 1.50 | % |                     |   | 1,790  |           |  |   | (21 | )
|QW Holding Corporation (Quala)                                            |  | Revolver     |  |           | 1.00 | % |                     |   | 5,086  |           |  |   | 14  |  
|QW Holding Corporation (Quala)                                            |  | Delayed Draw |  |           | 1.00 | % |                     |   | 5,918  |           |  |   | 17  |  
|RelaDyne Inc.                                                             |  | Revolver     |  |           | 0.50 | % |                     |   | 2,162  |           |  |   | (6  | )
|RelaDyne Inc.                                                             |  | Delayed Draw |  |           | 0.50 | % |                     |   | 1,824  |           |  |   | (5  | )
|T2 Systems, Inc.                                                          |  | Revolver     |  |           | 1.00 | % |                     |   | 1,955  |           |  |   | 20  |  
|The Original Cakerie, Ltd. (Canada)                                       |  | Revolver     |  |           | 0.50 | % |                     |   | 1,665  |           |  |   |    |  
|Zywave, Inc.                                                              |  | Revolver     |  |           | 0.50 | % |                     |   | 1,500  |           |  |   | (5  | )
|                                                                          |  |              |  |           |      |   |                     |   |        |           |  |   |     |  
|Total unfunded commitments                                                |  |              |  |           |      |   |                     | $ | 30,361 |           |  | $ | 2   |  
|                                                                          |  |              |  |           |      |   |                     |   |        |           |  |   |     |  



74



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|(11) | As of December 31, 2016, this LIBOR loan was indexed to the 30-day LIBOR rate at 0.77%.
|---- | ---------------------------------------------------------------------------------------

Below is certain summarized consolidated financial information for Credit Fund as of March 31, 2017 and December 31, 2016, respectively. Credit Fund
commenced operations in May 2016.



|                                                                                   |  |                |         |  |                   |   |         | 
|---------------------------------------------------------------------------------- |  | -------------- | ------- |  | ----------------- | - | ------- | 
|                                                                                   |  | March 31, 2017 |         |  | December 31, 2016 |  
|                                                                                   |  | (unaudited)    |         |  |                   |  
|Selected Consolidated Balance Sheet Information                                    |  |                |         |  |                   |   |         | 
|ASSETS                                                                             |  |                |         |  |                   |   |         | 
|Investments, at fair value (amortized cost of $553,401 and $433,272, respectively) |  | $              | 558,694 |  |                   | $ | 437,829 | 
|Cash and other assets                                                              |  |                | 15,088  |  |                   |   | 11,326  | 
|                                                                                   |  |                |         |  |                   |   |         | 
|Total assets                                                                       |  | $              | 573,782 |  |                   | $ | 449,155 | 
|                                                                                   |  |                |         |  |                   |   |         | 
|LIABILITIES AND MEMBERS EQUITY                                                    |  |                |         |  |                   |   |         | 
|Secured borrowings                                                                 |  | $              | 367,375 |  |                   | $ | 248,540 | 
|Mezzanine loans                                                                    |  |                | 86,044  |  |                   |   | 62,384  | 
|Other liabilities                                                                  |  |                | 24,208  |  |                   |   | 63,684  | 
|Subordinated loans and members equity                                             |  |                | 96,155  |  |                   |   | 74,547  | 
|                                                                                   |  |                |         |  |                   |   |         | 
|Liabilities and members equity                                                    |  | $              | 573,782 |  |                   | $ | 449,155 | 
|                                                                                   |  |                |         |  |                   |   |         | 



|                                                                    |  |                                               |       | 
|------------------------------------------------------------------- |  | --------------------------------------------- | ----- | 
|                                                                    |  | For the three monthperiod endedMarch 31, 2017 |      
|                                                                    |  | (unaudited)                                   |      
|Selected Consolidated Statement of Operations Information:          |  |                                               |       | 
|Total investment income                                             |  | $                                             | 8,182 | 
|                                                                    |  |                                               |       | 
|Expenses                                                            |  |                                               |       | 
|Interest and credit facility expenses                               |  |                                               | 5,473 | 
|Other expenses                                                      |  |                                               | 318   | 
|                                                                    |  |                                               |       | 
|Total expenses                                                      |  |                                               | 5,791 | 
|                                                                    |  |                                               |       | 
|Net investment income (loss)                                        |  |                                               | 2,391 | 
|                                                                    |  |                                               |       | 
|Net realized gain (loss) on investments                             |  |                                               |      | 
|Net change in unrealized appreciation (depreciation) on investments |  |                                               | 737   | 
|                                                                    |  |                                               |       | 
|Net increase (decrease) resulting from operations                   |  | $                                             | 3,128 | 
|                                                                    |  |                                               |       | 

Debt

Credit
Fund Facility

On June 24, 2016, Credit Fund entered into the Credit Fund Facility with us pursuant to which Credit Fund may from
time to time request mezzanine loans from us. The maximum principal amount of the Credit Fund Facility is $100,000. The maturity date of the Credit Fund Facility is June 24, 2017. Amounts borrowed under the Credit Fund Facility bear interest at
a rate of LIBOR plus 9.50%.

During the three months ended March 31, 2017, there were mezzanine loan borrowings of $45,660 and
repayments of $22,000 under the Credit Fund Facility. As of March 31, 2017 and December 31, 2016, there were $86,044 and $62,384 in mezzanine loans outstanding, respectively.



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Credit Fund Sub Facility

On June 24, 2016, Credit Fund Sub closed on the Credit Fund Sub Facility with lenders. The Credit Fund Sub Facility provides for secured
borrowings during the applicable revolving period up to an amount equal to $450,000, with an accordion feature that can, subject to certain conditions, increase the aggregate maximum credit commitment up to an amount not to exceed $1,400,000. The
facility is secured by a first lien security interest in substantially all of the portfolio investments held by Credit Fund Sub and the Companys and Credit Partners unfunded capital commitments. The maturity date of the Credit Fund Sub
Facility is June 24, 2022. Amounts borrowed under the Credit Fund Sub Facility bear interest at a rate of LIBOR plus 2.50%.

During
the three month period ended March 31, 2017, there were secured borrowings of $118,835 under the Credit Fund Sub Facility. As of March 31, 2017 and December 31, 2016, there was $367,375 and $248,540 in secured borrowings outstanding,
respectively.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

We generate cash from the net proceeds of offerings of our common stock and through cash flows from operations, including investment sales and
repayments as well as income earned on investments and cash equivalents. We may also fund a portion of our investments through borrowings under the Facilities, as well as through securitization of a portion of our existing investments.

The SPV closed on May 24, 2013 on the SPV Credit Facility, which was subsequently amended on June 30, 2014, June 19, 2015 and
June 9, 2016. The SPV Credit Facility provides for secured borrowings during the applicable revolving period up to an amount equal to the lesser of $400,000 (the borrowing base as calculated pursuant to the terms of the SPV Credit Facility) and
the amount of net cash proceeds and unpledged capital commitments the Company has received, with an accordion feature that can, subject to certain conditions, increase the aggregate maximum credit commitment up to an amount not to exceed $750,000,
subject to restrictions imposed on borrowings under the Investment Company Act and certain restrictions and conditions set forth in the SPV Credit Facility, including adequate collateral to support such borrowings. The SPV Credit Facility imposes
financial and operating covenants on us and the SPV that restrict our and its business activities. Continued compliance with these covenants will depend on many factors, some of which are beyond our control.

We closed on March 21, 2014 on the Credit Facility, which was subsequently amended on January 8, 2015, May 25, 2016 and
March 22, 2017. The maximum principal amount of the Credit Facility is $283,000, subject to availability under the Credit Facility, which is based on certain advance rates multiplied by the value of the Companys portfolio investments
(subject to certain concentration limitations) net of certain other indebtedness that the Company may incur in accordance with the terms of the Credit Facility. Proceeds of the Credit Facility may be used for general corporate purposes, including
the funding of portfolio investments. Maximum capacity under the Credit Facility may be increased, subject to certain conditions, to $550,000 through the exercise by the Company of an uncommitted accordion feature through which existing and new
lenders may, at their option, agree to provide additional financing. The Credit Facility includes a $20,000 limit for swingline loans and a $5,000 limit for letters of credit. Subject to certain exceptions, the Credit Facility is secured by a first
lien security interest in substantially all of the portfolio investments held by the Company. The Credit Facility includes customary covenants, including certain financial covenants related to asset coverage, shareholders equity and liquidity,
certain limitations on the incurrence of additional indebtedness and liens, and other maintenance covenants, as well as usual and customary events of default for senior secured revolving credit facilities of this nature.

Although we believe that we and the SPV will remain in compliance, there are no assurances that we or the SPV will continue to comply with the
covenants in the Credit Facility and SPV Credit Facility, as applicable. Failure to comply with these covenants could result in a default under the Credit Facility and/or the SPV Credit Facility that, if we or the SPV were unable to obtain a waiver
from the applicable lenders, could result in the immediate acceleration of the amounts due under the Credit Facility and/or the SPV Credit Facility, and thereby have a material adverse impact on our business, financial condition and results of
operations.



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For more information on the SPV Credit Facility and the Credit Facility, see Note 6 to the
consolidated financial statements in Part II, Item 8 of this Form 10-Q.

The primary use of
existing funds and any funds raised in the future is expected to be for investments in portfolio companies, repayment of indebtedness, cash distributions to our stockholders and for other general corporate purposes.

On June 26, 2015, we completed a $400 million term debt securitization (the 2015-1
Debt Securitization). The notes offered in the Debt Securitization (the 2015-1 Notes) were issued by Carlyle GMS Finance MM CLO 2015-1 LLC (the 2015-1 Issuer), a wholly-owned and consolidated subsidiary of us, and are secured by a diversified portfolio of the 2015-1 Issuer consisting primarily of first and
second lien senior secured loans. The 2015-1 Debt Securitization was executed through a private placement of the 2015-1 Notes, consisting of $160 million of Aaa/AAA
Class A-1A Notes, which bear interest at the three-month London Interbank Offered Rate (LIBOR) plus 1.85%; $40 million of Aaa/AAA Class A-1B
Notes, which bear interest at the three-month LIBOR plus 1.75% for the first 24 months and the three-month LIBOR plus 2.05% thereafter; $27 million of Aaa/AAA Class A-1C Notes, which bear interest at
3.75%; and $46 million of Aa2 Class A-2 Notes which bear interest at the three-month LIBOR plus 2.70%. The 2015-1 Notes were issued at par and are scheduled to
mature on July 15, 2027. We received 100% of the preferred interests (the Preferred Interests) issued by the 2015-1 Issuer on the closing date of the
2015-1 Debt Securitization in exchange for our contribution to the Issuer of the initial closing date loan portfolio. The Preferred Interests do not bear interest and had a nominal value of $125.9 million
at closing. In connection with the contribution, we have made customary representations, warranties and covenants to the 2015-1 Issuer. The Class A-1A, Class A-1B and Class A-1C and Class A-2 Notes are included in the consolidated financial statements included in Part I,
Item 1 of this Form 10-Q. The Preferred Interests were eliminated in consolidation. For more information on the 2015-1 Notes, see Note 7 to the consolidated financial
statements in Part I, Item 1 of this Form 10-Q.

As of March 31, 2017 and December 31,
2016, the Company had $44,874 and $38,489, respectively, in cash and cash equivalents. The Facilities consisted of the following as of March 31, 2017 and December 31, 2016:



|                    |  |                |         |  |                       |   |         |                   |  |   |                     |  |  |   |         | 
|------------------- |  | -------------- | ------- |  | --------------------- | - | ------- | ----------------- |  | - | ------------------- |  |  | - | ------- | 
|                    |  | March 31, 2017 |        
|                    |  | TotalFacility  |         |  | BorrowingsOutstanding |   |         | UnusedPortion (1) |  |   | AmountAvailable (2) | 
|SPV Credit Facility |  | $              | 400,000 |  |                       | $ | 201,108 |                   |  | $ | 198,892             |  |  | $ | 10,476  | 
|Credit Facility     |  |                | 283,000 |  |                       |   | 189,500 |                   |  |   | 93,500              |  |  |   | 93,500  | 
|                    |  |                |         |  |                       |   |         |                   |  |   |                     |  |  |   |         | 
|Total               |  | $              | 683,000 |  |                       | $ | 390,608 |                   |  | $ | 292,392             |  |  | $ | 103,976 | 
|                    |  |                |         |  |                       |   |         |                   |  |   |                     |  |  |   |         | 



|                    |  |                   |         |  |                       |   |         |                  |  |   |                    |  |  |   |        | 
|------------------- |  | ----------------- | ------- |  | --------------------- | - | ------- | ---------------- |  | - | ------------------ |  |  | - | ------ | 
|                    |  | December 31, 2016 |        
|                    |  | TotalFacility     |         |  | BorrowingsOutstanding |   |         | UnusedPortion(1) |  |   | AmountAvailable(2) | 
|SPV Credit Facility |  | $                 | 400,000 |  |                       | $ | 252,885 |                  |  | $ | 147,115            |  |  | $ | 5,988  | 
|Credit Facility     |  |                   | 220,000 |  |                       |   | 169,000 |                  |  |   | 51,000             |  |  |   | 51,000 | 
|                    |  |                   |         |  |                       |   |         |                  |  |   |                    |  |  |   |        | 
|Total               |  | $                 | 620,000 |  |                       | $ | 421,885 |                  |  | $ | 198,115            |  |  | $ | 56,988 | 
|                    |  |                   |         |  |                       |   |         |                  |  |   |                    |  |  |   |        | 



|(1) | The unused portion is the amount upon which commitment fees are based.
|--- | ----------------------------------------------------------------------

|(2) | Available for borrowing based on the computation of collateral to support the borrowings and subject to compliance with applicable covenants and financial ratios.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------



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The following were the carrying values (before debt issuance costs) and fair values of the
Companys 2015-1 Notes as of March 31, 2017 and December 31, 2016:



|                         |  |                |         |  |                   |   |         |                |  |   |            |  |  |   |         | 
|------------------------ |  | -------------- | ------- |  | ----------------- | - | ------- | -------------- |  | - | ---------- |  |  | - | ------- | 
|                         |  | March 31, 2017 |         |  | December 31, 2016 |  
|                         |  | Carrying Value |         |  | Fair Value        |   |         | Carrying Value |  |   | Fair Value | 
|Aaa/AAA Class A-1A Notes |  | $              | 160,000 |  |                   | $ | 160,110 |                |  | $ | 160,000    |  |  | $ | 160,072 | 
|Aaa/AAA Class A-1B Notes |  |                | 40,000  |  |                   |   | 40,001  |                |  |   | 40,000     |  |  |   | 39,960  | 
|Aaa/AAA Class A-1C Notes |  |                | 27,000  |  |                   |   | 27,030  |                |  |   | 27,000     |  |  |   | 26,951  | 
|Aa2 Class A-2 Notes      |  |                | 46,000  |  |                   |   | 46,027  |                |  |   | 46,000     |  |  |   | 45,784  | 
|                         |  |                |         |  |                   |   |         |                |  |   |            |  |  |   |         | 
|Total                    |  | $              | 273,000 |  |                   | $ | 273,168 |                |  | $ | 273,000    |  |  | $ | 272,767 | 
|                         |  |                |         |  |                   |   |         |                |  |   |            |  |  |   |         | 

Equity Activity

There were $51,816 and $14,300 of commitments made to us during the three month periods ended March 31, 2017 and 2016, respectively. As of
March 31, 2017 and December 31, 2016, we had $1,274,174 and $1,222,358, respectively, in total capital commitments from stockholders, of which $473,514 and $421,698, respectively, was unfunded, and subject to call by the Company. As of
March 31, 2017 and December 31, 2016, current directors had committed $821 in capital commitments to us.

Shares issued as of
March 31, 2017 and December 31, 2016 were 41,708,155 and 41,702,318, respectively.

The following table summarizes activity in
the number of shares of our common stock outstanding during the three month periods ended March 31, 2017 and 2016:



|                                        |  |                                   |            |  |                |  |            | 
|--------------------------------------- |  | --------------------------------- | ---------- |  | -------------- |  | ---------- | 
|                                        |  | For the three month periods ended |           
|                                        |  | March 31, 2017                    |            |  | March 31, 2016 | 
|Shares outstanding, beginning of period |  |                                   | 41,702,318 |  |                |  | 31,524,083 | 
|Common stock issued                     |  |                                   |           |  |                |  | 1,815,181  | 
|Reinvestment of dividends               |  |                                   | 5,837      |  |                |  | 3,885      | 
|                                        |  |                                   |            |  |                |  |            | 
|Shares outstanding, end of period       |  |                                   | 41,708,155 |  |                |  | 33,343,149 | 
|                                        |  |                                   |            |  |                |  |            | 

Contractual Obligations

A summary of our significant contractual payment obligations was as follows as of March 31, 2017 and December 31, 2016:



|                      |  |                                         |         |  |                   |   |         |                |  |   |                  |  |  |   |         | 
|--------------------- |  | --------------------------------------- | ------- |  | ----------------- | - | ------- | -------------- |  | - | ---------------- |  |  | - | ------- | 
|                      |  | SPV Credit Facility and Credit Facility |         |  | 2015-1 Notes      |  
|Payment Due by Period |  | March 31, 2017                          |         |  | December 31, 2016 |   |         | March 31, 2017 |  |   | December 31,2016 | 
|Less than 1 Year      |  | $                                       |        |  |                   | $ |        |                |  | $ |                 |  |  | $ |        | 
|1-3 Years             |  |                                         |        |  |                   |   |        |                |  |   |                 |  |  |   |        | 
|3-5 Years             |  |                                         | 390,608 |  |                   |   | 421,885 |                |  |   |                 |  |  |   |        | 
|More than 5 Years     |  |                                         |        |  |                   |   |        |                |  |   | 273,000          |  |  |   | 273,000 | 
|                      |  |                                         |         |  |                   |   |         |                |  |   |                  |  |  |   |         | 
|Total                 |  | $                                       | 390,608 |  |                   | $ | 421,885 |                |  | $ | 273,000          |  |  | $ | 273,000 | 
|                      |  |                                         |         |  |                   |   |         |                |  |   |                  |  |  |   |         | 

As of March 31, 2017 and December 31, 2016, $201,108 and $252,885, respectively, of secured
borrowings were outstanding under the SPV Credit Facility, $189,500 and $169,000, respectively, were outstanding under the Credit Facility and $273,000 and $273,000, respectively, of 2015-1 Notes were
outstanding. For the three month periods ended March 31, 2017 and 2016, we incurred $5,034 and $3,599, respectively, of interest expense and $292 and $361, respectively, of unused commitment fees.



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OFF BALANCE SHEET ARRANGEMENTS

In the ordinary course of our business, we enter into contracts or agreements that contain indemnifications or warranties. Future events could
occur which may give rise to liabilities arising from these provisions against us. We believe that the likelihood of such an event is remote; however, the maximum potential exposure is unknown. No accrual has been made in these consolidated
financial statements as of March 31, 2017 and December 31, 2016 included in Part I, Item 1 of this Form 10-Q for any such exposure.

We have in the past and may in the future become obligated to fund commitments such as revolving credit facilities, bridge financing
commitments, or delayed draw commitments.

We had the following unfunded commitments to fund delayed draw and revolving senior secured
loans as of the indicated dates:



|                                         |  |                        |        |  |                   |   |        | 
|---------------------------------------- |  | ---------------------- | ------ |  | ----------------- | - | ------ | 
|                                         |  | Principal Amount as of |       
|                                         |  | March 31, 2017         |        |  | December 31, 2016 |  
|Unfunded delayed draw commitments        |  | $                      | 44,541 |  |                   | $ | 35,704 | 
|Unfunded revolving term loan commitments |  |                        | 26,517 |  |                   |   | 24,063 | 
|                                         |  |                        |        |  |                   |   |        | 
|Total unfunded commitments               |  | $                      | 71,058 |  |                   | $ | 59,767 | 
|                                         |  |                        |        |  |                   |   |        | 

Pursuant to an undertaking by us in connection with the 2015-1 Debt
Securitization, we agreed to hold on an ongoing basis Preferred Interests with an aggregate dollar purchase price at least equal to 5% of the aggregate outstanding amount of all collateral obligations by the
2015-1 Issuer for so long as any securities of the 2015-1 Issuer remains outstanding. As of March 31, 2017, we were in compliance with this undertaking.

As of March 31, 2017, in addition to the amounts in the table above, we had remaining commitments to fund, from time to time, capital to
Credit Fund of up to $354,499. As of March 31, 2017, we had remaining commitments to fund, from time to time, mezzanine loans to Credit Fund of up to $13,956, of which $10,438 was available for borrowing based on the computation of collateral
to support the borrowings.

DIVIDENDS AND DISTRIBUTIONS TO COMMON STOCKHOLDERS

We have adopted a dividend reinvestment plan that provides for reinvestment of any distributions on behalf of our stockholders, for those who
have elected to participate in the plan. As a result of adopting such a plan, if the Board of Directors authorizes, and we declare a cash dividend or distribution, the stockholders who have elected to participate in the dividend reinvestment plan
would have their cash dividends or distributions automatically reinvested in additional shares of our common stock, rather than receiving cash. Prior to a Qualified IPO, we intend to use primarily newly issued shares of its common stock to implement
the plan issued at the net asset value per share most recently determined by the Board of Directors. After a Qualified IPO, we intend to use primarily newly issued shares to implement the plan so long as the market value per share is equal to or
greater than the net asset value per share as of the close of business on the relevant payment date for such dividend or distribution. If the market value per share is less than the net asset value per share as of the close of business on the
relevant payment date, the plan administrator would purchase the common stock on behalf of participants in the open market, unless we instruct the plan administrator otherwise.



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The following table summarizes our dividends declared and payable since inception through
March 31, 2017:



|                   |  |                    |  |                  |  |                 |      |     |             |   |        |                             |  |  |      |  
|------------------ |  | ------------------ |  | ---------------- |  | --------------- | ---- | --- | ----------- | - | ------ | --------------------------- |  |  | ---- | -
|Date Declared      |  | Record Date        |  | Payment Date     |  | Per ShareAmount |      |     | TotalAmount |   |        | AnnualizedDividend Yield(1) | 
|March 13, 2014     |  | March 31, 2014     |  | April 14, 2014   |  | $               | 0.19 |     |             | $ | 2,449  |                             |  |  | 4.76 | %
|June 26, 2014      |  | June 30, 2014      |  | July 14, 2014    |  | $               | 0.27 |     |             | $ | 3,481  |                             |  |  | 5.52 | %
|September 12, 2014 |  | September 18, 2014 |  | October 9, 2014  |  | $               | 0.44 |     |             | $ | 5,956  |                             |  |  | 9.23 | %
|December 19, 2014  |  | December 29, 2014  |  | January 26, 2015 |  | $               | 0.35 |     |             | $ | 6,276  |                             |  |  | 8.17 | %
|March 11, 2015     |  | March 13, 2015     |  | April 17, 2015   |  | $               | 0.37 |     |             | $ | 7,833  |                             |  |  | 8.58 | %
|June 24, 2015      |  | June 30, 2015      |  | July 22, 2015    |  | $               | 0.37 |     |             | $ | 9,902  |                             |  |  | 9.03 | %
|September 24, 2015 |  | September 24, 2015 |  | October 22, 2015 |  | $               | 0.42 |     |             | $ | 11,670 |                             |  |  | 8.91 | %
|December 29, 2015  |  | December 29, 2015  |  | January 22, 2016 |  | $               | 0.40 |     |             | $ | 12,610 |                             |  |  | 8.97 | %
|December 29, 2015  |  | December 29, 2015  |  | January 22, 2016 |  | $               | 0.18 | (2) |             | $ | 5,674  |                             |  |  | 4.03 | %
|March 10, 2016     |  | March 14, 2016     |  | April 22, 2016   |  | $               | 0.40 |     |             | $ | 13,337 |                             |  |  | 9.26 | %
|June 8, 2016       |  | June 8, 2016       |  | July 22, 2016    |  | $               | 0.40 |     |             | $ | 13,943 |                             |  |  | 9.23 | %
|September 28, 2016 |  | September 28, 2016 |  | October 24, 2016 |  | $               | 0.40 |     |             | $ | 15,917 |                             |  |  | 9.37 | %
|December 29, 2016  |  | December 29, 2016  |  | January 24, 2017 |  | $               | 0.41 |     |             | $ | 17,098 |                             |  |  | 9.09 | %
|December 29, 2016  |  | December 29, 2016  |  | January 24, 2017 |  | $               | 0.07 | (2) |             | $ | 2,919  |                             |  |  | 1.55 | %
|March 20, 2017     |  | March 20, 2017     |  | April 24, 2017   |  | $               | 0.41 |     |             | $ | 17,100 |                             |  |  | 9.07 | %



|(1) | Annualized dividend yield is calculated by dividing the declared dividend by the weighted average of the net asset value at the beginning of the quarter and the capital called during the quarter and annualizing over 4
quarterly periods.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Represents a special dividend.
|--- | ------------------------------

CRITICAL ACCOUNTING POLICIES

The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting policies, including those
relating to the valuation of our investment portfolio, are described below. The critical accounting policies should be read in connection with our consolidated financial statements in Part I, Item 1 of this Form
10-Q and in Part II, Item 8 of the Companys annual report on Form 10-K for the year ended December 31, 2016.

Fair Value Measurements

The
Company applies fair value accounting in accordance with the terms of Financial Accounting Standards Board ASC Topic 820, Fair Value Measurement(ASC 820). ASC 820 defines fair value as the amount that would be exchanged to sell
an asset or transfer a liability in an orderly transfer between market participants at the measurement date. The Company values securities/instruments traded in active markets on the measurement date by multiplying the closing price of such traded
securities/instruments by the quantity of shares or amount of the instrument held. The Company may also obtain quotes with respect to certain of its investments, such as its securities/instruments traded in active markets and its liquid
securities/instruments that are not traded in active markets, from pricing services, brokers, or counterparties (i.e., consensus pricing). When doing so, the Company determines whether the quote obtained is sufficient according to
US GAAP to determine the fair value of the security. The Company may use the quote obtained or alternative pricing sources may be utilized including valuation techniques typically utilized for illiquid securities/instruments.

Securities/instruments that are illiquid or for which the pricing source does not provide a valuation or methodology or provides a valuation
or methodology that, in the judgment of the Investment Adviser or the Board of Directors, does not represent fair value shall each be valued as of the measurement date using all



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techniques appropriate under the circumstances and for which sufficient data is available. These valuation techniques may vary by investment and include comparable public market valuations,
comparable precedent transaction valuations and/or discounted cash flow analyses. The process generally used to determine the applicable value is as follows: (i) the value of each portfolio company or investment is initially reviewed by the
investment professionals responsible for such portfolio company or investment and, for non-traded investments, a standardized template designed to approximate fair market value based on observable market
inputs, updated credit statistics and unobservable inputs is used to determine a preliminary value, which is also reviewed alongside consensus pricing, where available; (ii) preliminary valuation conclusions are documented and reviewed by a
valuation committee comprised of members of senior management; (iii) the Board of Directors engages a third-party valuation firm to provide positive assurance on portions of the Middle Market Senior Loans and equity investments portfolio each
quarter (such that each non-traded investment other than Credit Fund is reviewed by a third-party valuation firm at least once on a rolling twelve month basis) including a review of managements
preliminary valuation and conclusion on fair value; (iv) the Audit Committee of the Board of Directors (the Audit Committee) reviews the assessments of the Investment Adviser and the third-party valuation firm and provides the Board
of Directors with any recommendations with respect to changes to the fair value of each investment in the portfolio; and (v) the Board of Directors discusses the valuation recommendations of the Audit Committee and determines the fair value of
each investment in the portfolio in good faith based on the input of the Investment Adviser and, where applicable, the third-party valuation firm.

All factors that might materially impact the value of an investment are considered, including, but not limited to the assessment of the
following factors, as relevant:



| |  |  | the nature and realizable value of any collateral;
| | - |  | --------------------------------------------------



| |  |  | call features, put features and other relevant terms of debt;
| | - |  | -------------------------------------------------------------



| |  |  | the portfolio companys leverage and ability to make payments;
| | - |  | --------------------------------------------------------------



| |  |  | the portfolio companys public or private credit rating;
| | - |  | --------------------------------------------------------



| |  |  | the portfolio companys actual and expected earnings and discounted cash flow;
| | - |  | ------------------------------------------------------------------------------



| |  |  | prevailing interest rates and spreads for similar securities and expected volatility in future interest rates;
| | - |  | --------------------------------------------------------------------------------------------------------------



| |  |  | the markets in which the portfolio company does business and recent economic and/or market events; and
| | - |  | ------------------------------------------------------------------------------------------------------



| |  |  | comparisons to comparable transactions and publicly traded securities.
| | - |  | ----------------------------------------------------------------------

Investment performance
data utilized are the most recently available financial statements and compliance certificate received from the portfolio companies as of the measurement date which in many cases may reflect a lag in information.

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 the Companys investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the
investments existed, and it is reasonably possible that the difference could be material.

In addition, changes in the market environment
and other events that may occur over the life of the investments may cause the realized gains or losses on investments to be different from the net change in unrealized appreciation or depreciation currently reflected in the consolidated financial
statements as of March 31, 2017 and December 31, 2016.

US GAAP establishes a hierarchical disclosure framework which ranks
the level of observability of market price inputs used in measuring investments at fair value. The observability of inputs is impacted by a number of



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factors, including the type of investment and the characteristics specific to the investment and state of the marketplace, including the existence and transparency of transactions between market
participants. Investments with readily available quoted prices or for which fair value can be measured from quoted prices in active markets generally have a higher degree of market price observability and a lesser degree of judgment applied in
determining fair value.

Investments measured and reported at fair value are classified and disclosed based on the observability of inputs
used in determination of fair values, as follows:



| |  |  | Level 1inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date. The types of financial instruments included in Level 1 generally
include unrestricted securities, including equities and derivatives, listed in active markets. The Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could
reasonably impact the quoted price.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 2inputs to the valuation methodology are either directly or indirectly observable as of the reporting date and are those other than quoted prices in active markets. The type of financial instruments in this
category generally includes less liquid and restricted securities listed in active markets, securities traded in other than active markets, government and agency securities, and certain
over-the-counter derivatives where the fair value is based on observable inputs.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 3inputs to the valuation methodology are unobservable and significant to overall fair value measurement. The inputs into the determination of fair value require significant management judgment or estimation.
Financial instruments that are included in this category generally include investments in privately-held entities, collateralized loan obligations (CLOs), and certain
over-the-counter derivatives where the fair value is based on unobservable inputs.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an
investments level within the fair value hierarchy is based on the lowest level of input that is significant to the overall fair value measurement. The Investment Advisers assessment of the significance of a particular input to the fair
value measurement in its entirety requires judgment, and considers factors specific to the investment.

Transfers between levels, if any,
are recognized at the beginning of the quarter in which the transfers occur.

The Company generally uses the following framework when
determining the fair value of investments that are categorized as Level 3:

Investments in debt securities are initially evaluated to
determine whether the enterprise value of the portfolio company is greater than the applicable debt. The enterprise value of the portfolio company is estimated using a market approach and an income approach. The market approach utilizes market value
(EBITDA) multiples of publicly traded comparable companies and available precedent sales transactions of comparable companies. The Company carefully considers numerous factors when selecting the appropriate companies whose multiples are used to
value its portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, relevant risk factors, as well as size, profitability and growth expectations. The income approach
typically uses a discounted cash flow analysis of the portfolio company.

Investments in debt securities that do not have sufficient
coverage through the enterprise value analysis are valued based on an expected probability of default and discount recovery analysis.

Investments in debt securities with sufficient coverage through the enterprise value analysis are generally valued using a discounted cash
flow analysis of the underlying security. Projected cash flows in the discounted



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cash flow typically represent the relevant securitys contractual interest, fees and principal payments plus the assumption of full principal recovery at the securitys expected
maturity date. The discount rate to be used is determined using an average of two market-based methodologies. Investments in debt securities may also be valued using consensus pricing.

Investments in structured finance obligations are generally valued using a discounted cash flow and/or consensus pricing.

Investments in equities are generally valued using a market approach and/or an income approach. The market approach utilizes EBITDA multiples
of publicly traded comparable companies and available precedent sales transactions of comparable companies. The income approach typically uses a discounted cash flow analysis of the portfolio company.

Investments in Credit Funds subordinated loan and members interest are valued using the net asset value of the Companys
ownership interest in the funds and investments in Credit Funds mezzanine loans are valued using discounted cash flow analysis with expected repayment rate of principal and interest.

The significant unobservable inputs used in the fair value measurement of the Companys investments in first and second lien debt
securities are discount rates, indicative quotes and comparable EBITDA multiples. Significant increases in discount rates would result in a significantly lower fair value measurement. Significant decreases in indicative quotes or comparable EBITDA
multiples in isolation may result in a significantly lower fair value measurement.

The significant unobservable inputs used in the fair
value measurement of the Companys investments in structured finance obligations are discount rates, default rates, prepayment rates, recovery rates and indicative quotes. Significant increases in discount rates, default rates or prepayment
rates in isolation would result in a significantly lower fair value measurement, while a significant increase in recovery rates in isolation would result in a significantly higher fair value. Significant decreases in indicative quotes in isolation
may result in a significantly lower fair value measurement.

The significant unobservable inputs used in the fair value measurement of the
Companys investments in equities are discount rates and comparable EBITDA multiples. Significant increases in discount rates would result in a significantly lower fair value measurement. Significant decreases in comparable EBITDA multiples
would result in a significantly lower fair value measurement.

The carrying values of the secured borrowings and 2015-1 Notes approximate their respective fair values and are categorized as Level 3 within the hierarchy. Secured borrowings are valued generally using discounted cash flow analysis. The significant
unobservable inputs used in the fair value measurement of the Companys secured borrowings are discount rates. Significant increases in discount rates would result in a significantly lower fair value measurement. The fair value determination of
the Companys 2015-1 Notes was based on the market quotation(s) received from broker/dealer(s). These fair value measurements were based on significant inputs not observable and thus represent
Level 3 measurements as defined in the accounting guidance for fair value measurement.

The carrying value of other financial assets
and liabilities approximates their fair value based on the short term nature of these items.

See Note 3 to the consolidated financial
statements in Part I, Item 1 of this Form 10-Q for further information on fair value measurements.



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Use of Estimates

The preparation of consolidated financial statements in Part I, Item 1 of this Form 10-Q in
conformity with US GAAP requires management to make assumptions and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Managements estimates are based on historical experiences and other factors, including expectations of future events that management believes to be reasonable under the
circumstances. It also requires management to exercise judgment in the process of applying the Companys accounting policies. Assumptions and estimates regarding the valuation of investments and their resulting impact on base management and
incentive fees involve a higher degree of judgment and complexity and these assumptions and estimates may be significant to the consolidated financial statements in Part I, Item 1 of this Form 10-Q.
Actual results could differ from these estimates and such differences could be material.

Investments

Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from
the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized appreciation or depreciation previously recognized, and includes investments charged off during the period,
net of recoveries. Net change in unrealized appreciation or depreciation on investments as presented in the Consolidated Statements of Operations in Part I, Item 1 of this Form 10-Q reflects the net
change in the fair value of investments, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

Revenue Recognition

Interest from Investments
and Realized Gain/Loss on Investments

Interest income is recorded on an accrual basis and includes the accretion of discounts and
amortization of premiums. Discounts from and premiums to par value on debt investments purchased are accreted/amortized into interest income over the life of the respective security using the effective interest method. The amortized cost of debt
investments represents the original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion of discounts and amortization of premiums, if any. At time of exit, the realized
gain or loss on an investment is the difference between the amortized cost at time of exit and the cash received at exit using the specific identification method.

The Company may have loans in its portfolio that contain
payment-in-kind (PIK) provisions. PIK represents interest that is accrued and recorded as interest income at the contractual rates, increases the loan
principal on the respective capitalization dates, and is generally due at maturity.

Interest income from investments in the
equity class of CLO funds, which we refer to as structured finance obligations, is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows in accordance with ASC 325-40, Beneficial Interests in Securitized Financials Assets. We monitor the expected cash inflows from our CLO equity investments, including the expected residual payments and the effective yield is
determined and updated at least quarterly. In estimating these cash flows, there are a number of assumptions that are subject to uncertainties, including the amount and timing of principal payments which are impacted by prepayments, repurchases,
defaults, delinquencies and liquidations of or within the CLO funds. These uncertainties are difficult to predict and are subject to future events that could have impacted the Companys estimates if the information was known at the time. As a
result, actual results may differ significantly from these estimates.



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Dividend Income

Dividend income from the investment fund is recorded on the record date for the investment fund to the extent that such amounts are payable by
the investment fund and are expected to be collected.

Other Income

Other income may include income such as consent, waiver, amendment, syndication and prepayment fees associated with the Companys
investment activities as well as any fees for managerial assistance services rendered by the Company to the portfolio companies. Such fees are recognized as income when earned or the services are rendered. The Company may receive fees for
guaranteeing the outstanding debt of a portfolio company. Such fees are amortized into other income over the life of the guarantee. The unamortized amount, if any, is included in other assets in the Consolidated Statements of Assets and Liabilities
included in Part I, Item 1 of this Form 10-Q.

Non-Accrual Income

Loans are generally placed on non-accrual status when principal or interest payments are past
due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status.
Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon managements judgment regarding collectability.
Non-accrual loans are restored to accrual status when past due principal and interest are paid current and, in managements judgment, are likely to remain current. Management may not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection. As of March 31, 2017, the fair value of the loan in the portfolio on
non-accrual status was $8,858, which represents approximately 0.6% of total investments at fair value. The remaining first and second lien debt investments were performing and current on their interest
payments as of March 31, 2017. All first and second lien debt investments were performing and current on their interest payments as of March 31, 2016.

Income Taxes

For federal income
tax purposes, the Company has elected to be treated as a RIC under the Code, and intends to make the required distributions to its stockholders as specified therein. In order to qualify as a RIC, the Company must meet certain minimum distribution, source-of-income and asset diversification requirements. If such requirements are met, then the Company is generally required to pay income taxes only on the portion of its
taxable income and gains it does not distribute.

The minimum distribution requirements applicable to RICs require the Company to
distribute to its stockholders at least 90% of its investment company taxable income (ICTI), as defined by the Code, each year. Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess
of current year distributions into the next tax year. Any such carryover ICTI must be distributed before the end of that next tax year through a dividend declared prior to filing the final tax return related to the year which generated such ICTI.

In addition, based on the excise distribution requirements, the Company is subject to a 4% nondeductible federal excise tax on
undistributed income unless the Company distributes in a timely manner an amount at least equal to the sum of (1) 98% of its ordinary income for each calendar year, (2) 98.2% of capital gain net income (both long-term and short-term) for the one-year period ending October 31 in that calendar year and (3) any income realized, but not distributed, in the preceding year. For this purpose, however, any ordinary income or capital gain net income
retained by the Company that is subject to corporate income tax is considered to have been distributed. The Company intends to make sufficient distributions each taxable year to satisfy the excise distribution requirements.



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The Company evaluates tax positions taken or expected to be taken in the course of preparing its
consolidated financial statements to determine whether the tax positions are more-likely than not to be sustained by the applicable tax authority. All penalties and interest associated with income taxes, if any, are included in income
tax expense.

The SPV and the 2015-1 Issuer are disregarded entities for tax purposes and are
consolidated with the tax return of the Company.

Capital Calls and Dividends and Distributions to Common Stockholders

The Company records the shares issued in connection with capital calls as of the effective date of the capital call. To the extent that the
Company has taxable income available, the Company intends to make quarterly distributions to its common stockholders. Dividends and distributions to common stockholders are recorded on the record date. The amount to be distributed is determined by
the Board of Directors each quarter and is generally based upon the taxable earnings estimated by management and available cash. Net realized capital gains, if any, are generally distributed at least annually, although the Company may decide to
retain such capital gains for investment.

The Company has adopted a dividend reinvestment plan that provides for reinvestment of any
distributions on behalf of its stockholders, for those who have elected to participate in the plan. As a result of adopting such a plan, if the Board of Directors authorizes, and the Company declares, a cash dividend or distribution, the
stockholders who have elected to participate in the dividend reinvestment plan would have their cash dividends or distributions automatically reinvested in additional shares of the Companys common stock, rather than receiving cash. Prior to a
Qualified IPO, the Company intends to use primarily newly issued shares of its common stock to implement the plan issued at the net asset value per share most recently determined by the Board of Directors. After a Qualified IPO, the Company intends
to use primarily newly issued shares to implement the plan so long as the market value per share is equal to or greater than the net asset value per share as of the close of business on the relevant payment date for such dividend or distribution. If
the market value per share is less than the net asset value per share as of the close of business on the relevant payment date, the plan administrator would purchase the common stock on behalf of participants in the open market, unless the Company
instructs the plan administrator otherwise.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are subject to financial market risks, including changes in the valuations of our investment portfolio and interest rates.

Valuation Risk

Our investments
may not have a readily available market price, and we value these investments at fair value as determined in good faith by our Board of Directors in accordance with our valuation policy. There is no single standard for determining fair value in good
faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. 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 fluctuate from period to period. Because of the inherent uncertainty of valuation, these
estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and it is possible that the difference could be material.



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Interest Rate Risk

As of March 31, 2017, on a fair value basis, approximately 1% of our debt investments bear interest at a fixed rate and approximately 99%
of our debt investments bear interest at a floating rate, which primarily are subject to interest rate floors. Interest rates on the investments held within our portfolio of investments are typically based on floating LIBOR, with many of these
investments also having a LIBOR floor. Additionally, our Facilities are also subject to floating interest rates and are currently paid based on floating LIBOR rates.

Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. There can be no
assurance that a significant change in market interest rates will not have a material adverse effect on our income in the future.

The
following table estimates the potential changes in net cash flow generated from interest income, should interest rates increase or decrease by 100, 200 or 300 basis points. Interest income is calculated as revenue from interest generated from our
settled portfolio of investments held as of March 31, 2017 and December 31, 2016, excluding structured finance obligations and Credit Fund. These hypothetical calculations are based on a model of the settled investments in our portfolio,
excluding structured finance obligations and Credit Fund, held as of March 31, 2017 and December 31, 2016, and are only adjusted for assumed changes in the underlying base interest rates and the impact of that change on interest income.
Interest expense is calculated based on outstanding secured borrowings and 2015-1 Notes as of March 31, 2017 and December 31, 2016 and based on the terms of our Facilities and 2015-1 Notes. Interest expense on our Facilities and 2015-1 Notes is calculated using the interest rate as of March 31, 2017 and December 31, 2016, adjusted for the
hypothetical changes in rates, as shown below. We intend to continue to finance a portion of our investments with borrowings and the interest rates paid on our borrowings may impact significantly our net interest income.

We regularly measure exposure to interest rate risk. We assess interest rate risk and manage interest rate exposure on an ongoing basis by
comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

Based on our Consolidated Statements of Assets and Liabilities as of March 31, 2017 and December 31, 2016, the following table shows
the annual impact on net investment income of base rate changes in interest rates for our settled investments (considering interest rate floors for variable rate instruments), excluding structured finance obligations and Credit Fund, and outstanding
secured borrowings and 2015-1 Notes assuming no changes in our investment and borrowing structure:



|                      |  |                      |        |   |                         |   |         |                     |  |   |                |  |  |                 |        |   |                     |   |         |   |  |   |        | 
|--------------------- |  | -------------------- | ------ | - | ----------------------- | - | ------- | ------------------- |  | - | -------------- |  |  | --------------- | ------ | - | ------------------- | - | ------- | - |  | - | ------ | 
|                      |  | As of March 31, 2017 |        |   | As of December 31, 2016 |  
|Basis Point Change    |  | InterestIncome       |        |   | InterestExpense         |   |         | NetInvestmentIncome |  |   | InterestIncome |  |  | InterestExpense |        |   | NetInvestmentIncome |  
|Up 300 basis points   |  | $                    | 39,057 |   |                         | $ | (19,098 | )                   |  | $ | 19,959         |  |  | $               | 40,324 |   |                     | $ | (20,037 | ) |  | $ | 20,287 | 
|Up 200 basis points   |  | $                    | 26,484 |   |                         | $ | (12,732 | )                   |  | $ | 13,752         |  |  | $               | 26,848 |   |                     | $ | (13,358 | ) |  | $ | 13,490 | 
|Up 100 basis points   |  | $                    | 13,910 |   |                         | $ | (6,366  | )                   |  | $ | 7,544          |  |  | $               | 13,372 |   |                     | $ | (6,679  | ) |  | $ | 6,693  | 
|Down 100 basis points |  | $                    | (1,495 | ) |                         | $ | 6,333   |                     |  | $ | 4,838          |  |  | $               | (132   | ) |                     | $ | 6,282   |   |  | $ | 6,150  | 
|Down 200 basis points |  | $                    | (1,495 | ) |                         | $ | 7,002   |                     |  | $ | 5,507          |  |  | $               | (132   | ) |                     | $ | 6,282   |   |  | $ | 6,150  | 
|Down 300 basis points |  | $                    | (1,495 | ) |                         | $ | 7,002   |                     |  | $ | 5,507          |  |  | $               | (132   | ) |                     | $ | 6,282   |   |  | $ | 6,150  | 

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our
management, including our Chief Executive Officer (Principal Executive Officer) and our Chief Financial Officer and Treasurer (Principal Financial Officer), of the effectiveness of the design and



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operation of our disclosure controls and procedures (as defined in Rule 13a-15 of Exchange Act). Based on that evaluation, our Chief Executive Officer and
our Chief Financial Officer and Treasurer have concluded that our current disclosure controls and procedures are effective in timely alerting them of material information relating to the Company that is required to be disclosed by us in the reports
we file or submit under the Exchange Act.

Changes in Internal Controls over Financial Reporting

There have been no changes in our internal control over financial reporting during the three month period ended March 31, 2017 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.

The Company may become party to certain lawsuits in the ordinary course of business. The Company is not currently subject to any material legal
proceedings, nor, to our knowledge, is any material legal proceeding threatened against the Company. See also Note 11 to the consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Item 1A. Risk Factors.

There have been no material changes to the risk factors previously disclosed in our annual report on
Form 10-K for the year ended December 31, 2016. For a discussion of our potential risks and uncertainties, see the information under the heading Risk Factors in Part I, Item 1A of our
annual report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 21, 2017, which is accessible on the SECs website at sec.gov.

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

Except as previously reported by the Company on Form 8-K, we did not sell any equity securities during
the period covered in this report that were not registered under the Securities Act of 1933, as amended.

Item 3.
Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Not Applicable.

Item 6. Exhibits.



|     |  |                                                                                                                                                                                  
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     | 
|10.1 |  | Third Amendment, dated as of March 22, 2017, to the Senior Secured Revolving Credit Agreement, dated as of March 21, 2014.*                                                      
|     | 
|31.1 |  | Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.*                           
|     | 
|31.2 |  | Certification of Chief Financial Officer (Principal Financial Officer) Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*                              
|     | 
|32.1 |  | Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
|     | 
|32.2 |  | Certification of Chief Financial Officer (Principal Financial Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*



|* | Filed herewith
|- | --------------



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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.



|                    |  |               |  |                                                                                     
|------------------- |  | ------------- |  | ------------------------------------------------------------------------------------
|                    |  | TCG BDC, INC.
|                    |  |              
|Dated: May 10, 2017 |  | By            |  | /s/ Venugopal Rathi                                                                 
|                    |  |               |  | Venugopal Rathi Chief Financial Officer
(principal financial and accounting officer)



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