##### Table of Contents





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q





(Mark One)

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

For the quarterly period ended March 31, 2018

OR



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

For the transition period from
 to

Commission file number 814-00861





Fidus Investment Corporation

(Exact Name of Registrant as Specified in its Charter)







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

(847) 859-3940

(Registrants telephone number, including area code)

n/a

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





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

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

Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer,
accelerated filer, smaller reporting company and emerging growth 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 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  ☒

As of April 30, 2018, the Registrant had outstanding 24,463,119 shares of common stock, $0.001 par value.









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##### Table of Contents

FIDUS INVESTMENT CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q



|              |  |                                                                                                                        |    |   |    | 
|------------- |  | ---------------------------------------------------------------------------------------------------------------------- | -- | - | -- | 
|              |  | PART I  FINANCIAL INFORMATION                                                                                         |    | 1 |   
|Item 1.       |  | Financial Statements                                                                                                   |    |   | 1  | 
|              |  | Consolidated Statements of Assets and Liabilities  March 
31, 2018 (unaudited) and December 31, 2017                  |    |   | 1  | 
|              |  | Consolidated Statements of Operations  Three Months Ended March 31,
 2018 (unaudited) and 2017 (unaudited)            |    |   | 2  | 
|              |  | Consolidated Statements of Changes in Net Assets  Three Months Ended
 March 31, 2018 (unaudited) and 2017 (unaudited) |    |   | 3  | 
|              |  | Consolidated Statements of Cash Flows  Three Months Ended March 31,
 2018 (unaudited) and 2017 (unaudited)            |    |   | 4  | 
|              |  | Consolidated Schedules of Investments  March 
31, 2018 (unaudited) and December 31, 2017                              |    |   | 5  | 
|              |  | Notes to Consolidated Financial Statements (unaudited)                                                                 |    |   | 17 | 
|Item 2.       |  | Managements Discussion and Analysis of Financial Condition and Results
 of Operations                                 |    |   | 37 | 
|Item 3.       |  | Quantitative and Qualitative Disclosures About Market Risk                                                             |    |   | 51 | 
|Item 4.       |  | Controls and Procedures                                                                                                |    |   | 51 | 
|              |  | PART II  OTHER INFORMATION                                                                                            |    |   | 53 | 
|Item 1.       |  | Legal Proceedings                                                                                                      |    |   | 53 | 
|Item 1A.      |  | Risk Factors                                                                                                           |    |   | 53 | 
|Item 2.       |  | Unregistered Sales of Equity Securities and Use of
Proceeds                                                            |    |   | 53 | 
|Item 3.       |  | Defaults Upon Senior Securities                                                                                        |    |   | 53 | 
|Item 4.       |  | Mine Safety Disclosures                                                                                                |    |   | 54 | 
|Item 5.       |  | Other Information                                                                                                      |    |   | 54 | 
|Item 6.       |  | Exhibits                                                                                                               |    |   | 55 | 
|Signatures    |  |                                                                                                                        | 56 |  
|Exhibit Index |  |                                                                                                                        | 57 |  



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##### Table of Contents

PART I  FINANCIAL INFORMATION



|Item 1. | Financial Statements.
|------- | ---------------------

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Assets and Liabilities

(in thousands, except shares and per share data)



|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------- | ------- | - | ---------------- | - | ------- | -
|                                                                                                                                                                              |  | March 31, 2018(unaudited) |         |   | December 31,2017 |  
|ASSETS                                                                                                                                                                        |  |                           |         |   |                  |   |         |  
|Investments, at fair value                                                                                                                                                    |  |                           |         |   |                  |   |         |  
|Control investments (cost: $6,448 and $6,294, respectively)                                                                                                                   |  | $                         | 4,950   |   |                  | $ | 4,723   |  
|Affiliate investments (cost: $89,740 and $91,361, respectively)                                                                                                               |  |                           | 127,775 |   |                  |   | 123,011 |  
|Non-control/non-affiliate
investments (cost: $515,376 and $480,139, respectively)                                                                                             |  |                           | 499,470 |   |                  |   | 468,574 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total investments, at fair value (cost: $611,564 and $577,794, respectively)                                                                                                  |  |                           | 632,195 |   |                  |   | 596,308 |  
|Cash and cash equivalents                                                                                                                                                     |  |                           | 32,797  |   |                  |   | 41,572  |  
|Interest receivable                                                                                                                                                           |  |                           | 6,155   |   |                  |   | 7,411   |  
|Prepaid expenses and other assets                                                                                                                                             |  |                           | 1,265   |   |                  |   | 972     |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total assets                                                                                                                                                                  |  | $                         | 672,412 |   |                  | $ | 646,263 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|LIABILITIES                                                                                                                                                                   |  |                           |         |   |                  |   |         |  
|                                                                                                                                                                              |  |                          
|SBA debentures, net of deferred financing costs (Note 6)                                                                                                                      |  | $                         | 209,548 |   |                  | $ | 226,660 |  
|Public Notes, net of deferred financing costs (Note 6)                                                                                                                        |  |                           | 48,159  |   |                  |   |        |  
|Borrowings under Credit Facility, net of deferred financing costs (Note 6)                                                                                                    |  |                           | (265    | ) |                  |   | 11,175  |  
|Accrued interest and fees payable                                                                                                                                             |  |                           | 1,050   |   |                  |   | 2,712   |  
|Management and incentive fees payable  due to affiliate                                                                                                                      |  |                           | 12,916  |   |                  |   | 11,217  |  
|Administration fee payable and other  due to affiliate                                                                                                                       |  |                           | 425     |   |                  |   | 562     |  
|Taxes payable                                                                                                                                                                 |  |                           | 2,135   |   |                  |   | 500     |  
|Accounts payable and other liabilities                                                                                                                                        |  |                           | 286     |   |                  |   | 164     |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total liabilities                                                                                                                                                             |  |                           | 274,254 |   |                  |   | 252,990 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Commitments and contingencies (Note 7)                                                                                                                                        |  |                           |         |   |                  |   |         |  
|                                                                                                                                                                              |  |                          
|NET ASSETS                                                                                                                                                                    |  |                           |         |   |                  |   |         |  
|Common stock, $0.001 par value (100,000,000 shares authorized, 24,463,119 and 24,507,940 shares
issued and outstanding at March 31, 2018 and December 31, 2017, respectively) |  |                           | 24      |   |                  |   | 24      |  
|Additional paid-in capital                                                                                                                                                    |  |                           | 369,963 |   |                  |   | 370,545 |  
|Undistributed net investment income                                                                                                                                           |  |                           | 3,506   |   |                  |   | 5,687   |  
|Accumulated net realized gain (loss) on investments, net of taxes and distributions                                                                                           |  |                           | 3,530   |   |                  |   | (2,001  | )
|Accumulated net unrealized appreciation on investments                                                                                                                        |  |                           | 21,135  |   |                  |   | 19,018  |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total net assets                                                                                                                                                              |  |                           | 398,158 |   |                  |   | 393,273 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Total liabilities and net assets                                                                                                                                              |  | $                         | 672,412 |   |                  | $ | 646,263 |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  
|Net asset value per common share                                                                                                                                              |  | $                         | 16.28   |   |                  | $ | 16.05   |  
|                                                                                                                                                                              |  |                           |         |   |                  |   |         |  

See Notes to Consolidated Financial Statements (unaudited).



1



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Operations (unaudited)

(in thousands, except shares and per share data)



|                                                                                 |  |                             |            |   |      |   |            |  
|-------------------------------------------------------------------------------- |  | --------------------------- | ---------- | - | ---- | - | ---------- | -
|                                                                                 |  | Three Months EndedMarch 31, |           
|                                                                                 |  | 2018                        |            |   | 2017 |  
|Investment Income:                                                               |  |                             |            |   |      |   |            |  
|Interest income                                                                  |  |                             |            |   |      |   |            |  
|Control investments                                                              |  | $                           | 57         |   |      | $ |           |  
|Affiliate investments                                                            |  |                             | 1,655      |   |      |   | 2,260      |  
|Non-control/non-affiliate
investments                                            |  |                             | 13,023     |   |      |   | 10,829     |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Total interest income                                                            |  |                             | 14,735     |   |      |   | 13,089     |  
|Payment-in-kind
interest income                                                  |  |                             |            |   |      |   |            |  
|Control investments                                                              |  |                             | 153        |   |      |   |           |  
|Affiliate investments                                                            |  |                             | 400        |   |      |   | 414        |  
|Non-control/non-affiliate
investments                                            |  |                             | 1,126      |   |      |   | 1,245      |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Total
payment-in-kind interest income                                            |  |                             | 1,679      |   |      |   | 1,659      |  
|Dividend income                                                                  |  |                             |            |   |      |   |            |  
|Control investments                                                              |  |                             |           |   |      |   |           |  
|Affiliate investments                                                            |  |                             | 444        |   |      |   | 278        |  
|Non-control/non-affiliate
investments                                            |  |                             | (106       | ) |      |   | 380        |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Total dividend income                                                            |  |                             | 338        |   |      |   | 658        |  
|Fee income                                                                       |  |                             |            |   |      |   |            |  
|Control investments                                                              |  |                             |           |   |      |   |           |  
|Affiliate investments                                                            |  |                             | (4         | ) |      |   | 6          |  
|Non-control/non-affiliate
investments                                            |  |                             | 1,441      |   |      |   | 776        |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Total fee income                                                                 |  |                             | 1,437      |   |      |   | 782        |  
|Interest on idle funds and other income                                          |  |                             | 44         |   |      |   | 40         |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Total investment income                                                          |  |                             | 18,233     |   |      |   | 16,228     |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Expenses:                                                                        |  |                             |            |   |      |   |            |  
|Interest and financing expenses                                                  |  |                             | 3,082      |   |      |   | 2,584      |  
|Base management fee                                                              |  |                             | 2,685      |   |      |   | 2,313      |  
|Incentive fee                                                                    |  |                             | 3,754      |   |      |   | 2,378      |  
|Administrative service expenses                                                  |  |                             | 399        |   |      |   | 351        |  
|Professional fees                                                                |  |                             | 510        |   |      |   | 469        |  
|Other general and administrative expenses                                        |  |                             | 295        |   |      |   | 278        |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Total expenses                                                                   |  |                             | 10,725     |   |      |   | 8,373      |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Net investment income before income taxes                                        |  |                             | 7,508      |   |      |   | 7,855      |  
|Income tax provision (benefit)                                                   |  |                             | 131        |   |      |   | (4         | )
|                                                                                 |  |                             |            |   |      |   |            |  
|Net investment income                                                            |  |                             | 7,377      |   |      |   | 7,859      |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Net realized and unrealized gains (losses) on investments:                       |  |                             |            |   |      |   |            |  
|Net realized gains (losses):                                                     |  |                             |            |   |      |   |            |  
|Control investments                                                              |  |                             |           |   |      |   |           |  
|Affiliate investments                                                            |  |                             | 6,973      |   |      |   | 26         |  
|Non-control/non-affiliate
investments                                            |  |                             | 305        |   |      |   | 6,438      |  
|Net change in unrealized appreciation (depreciation):                            |  |                             |            |   |      |   |            |  
|Control investments                                                              |  |                             | 73         |   |      |   |           |  
|Affiliate investments                                                            |  |                             | 6,385      |   |      |   | 1,185      |  
|Non-control/non-affiliate
investments                                            |  |                             | (4,341     | ) |      |   | (4,591     | )
|Income tax provision from realized gains on investments                          |  |                             | (1,747     | ) |      |   | (1,385     | )
|                                                                                 |  |                             |            |   |      |   |            |  
|Net gain on investments                                                          |  |                             | 7,648      |   |      |   | 1,673      |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Net increase in net assets resulting from operations                             |  | $                           | 15,025     |   |      | $ | 9,532      |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Per common share data:                                                           |  |                             |            |   |      |   |            |  
|Net investment income per share-basic and diluted                                |  | $                           | 0.30       |   |      | $ | 0.35       |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Net increase in net assets resulting from operations per share-basic and diluted |  | $                           | 0.61       |   |      | $ | 0.42       |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Dividends declared per share                                                     |  | $                           | 0.39       |   |      | $ | 0.39       |  
|                                                                                 |  |                             |            |   |      |   |            |  
|Weighted average number of shares outstanding-basic and diluted                  |  |                             | 24,498,041 |   |      |   | 22,446,970 |  
|                                                                                 |  |                             |            |   |      |   |            |  

See Notes to Consolidated Financial Statements (unaudited).



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FIDUS INVESTMENT CORPORATION

Consolidated Statements of Changes in Net Assets (unaudited)

(in thousands, except shares)



|                                                                    |  |                 |            |   |            |   |    |                |  |   |                                                   |   |  |                                       |        |   |                              |   |         |                 |  |   |        |   |  |   |         |  
|------------------------------------------------------------------- |  | --------------- | ---------- | - | ---------- | - | -- | -------------- |  | - | ------------------------------------------------- | - |  | ------------------------------------- | ------ | - | ---------------------------- | - | ------- | --------------- |  | - | ------ | - |  | - | ------- | -
|                                                                    |  | Common Stock    |            |   | Additional |   |    | Undistributed  |  |   | Accumulatednet realizedgain (loss) oninvestments, |   |  | Accumulatednet unrealizedappreciation |        |   |                              |  
|                                                                    |  | Number ofshares |            |   | Parvalue   |   |    | paid-incapital |  |   | net investmentincome                              |   |  | net of taxes anddistributions         |        |   | (depreciation)on investments |   |         | Total netassets | 
|Balances at December 31, 2016                                       |  |                 | 22,446,076 |   |            | $ | 22 |                |  | $ | 340,101                                           |   |  | $                                     | 9,626  |   |                              | $ | (19,908 | )               |  | $ | 23,944 |   |  | $ | 353,785 |  
|Expenses related to public offerings of common stock                |  |                 |           |   |            |   |   |                |  |   | 51                                                |   |  |                                       |       |   |                              |   |        |                 |  |   |       |   |  |   | 51      |  
|Shares issued under dividend reinvestment plan                      |  |                 | 11,500     |   |            |   |   |                |  |   | 198                                               |   |  |                                       |       |   |                              |   |        |                 |  |   |       |   |  |   | 198     |  
|Net increase in net assets resulting from operations                |  |                 |           |   |            |   |   |                |  |   |                                                  |   |  |                                       | 7,859  |   |                              |   | 5,079   |                 |  |   | (3,406 | ) |  |   | 9,532   |  
|Dividends declared                                                  |  |                 |           |   |            |   |   |                |  |   |                                                  |   |  |                                       | (8,754 | ) |                              |   |        |                 |  |   |       |   |  |   | (8,754  | )
|                                                                    |  |                 |            |   |            |   |    |                |  |   |                                                   |   |  |                                       |        |   |                              |   |         |                 |  |   |        |   |  |   |         |  
|Balances at March 31, 2017                                          |  |                 | 22,457,576 |   |            | $ | 22 |                |  | $ | 340,350                                           |   |  | $                                     | 8,731  |   |                              | $ | (14,829 | )               |  | $ | 20,538 |   |  | $ | 354,812 |  
|                                                                    |  |                 |            |   |            |   |    |                |  |   |                                                   |   |  |                                       |        |   |                              |   |         |                 |  |   |        |   |  |   |         |  
|Balances at December 31, 2017                                       |  |                 | 24,507,940 |   |            | $ | 24 |                |  | $ | 370,545                                           |   |  | $                                     | 5,687  |   |                              | $ | (2,001  | )               |  | $ | 19,018 |   |  | $ | 393,273 |  
|Repurchases of common stock under Stock Repurchase Program (Note 8) |  |                 | (44,821    | ) |            |   |   |                |  |   | (582                                              | ) |  |                                       |       |   |                              |   |        |                 |  |   |       |   |  |   | (582    | )
|Net increase in net assets resulting from operations                |  |                 |           |   |            |   |   |                |  |   |                                                  |   |  |                                       | 7,377  |   |                              |   | 5,531   |                 |  |   | 2,117  |   |  |   | 15,025  |  
|Dividends declared                                                  |  |                 |           |   |            |   |   |                |  |   |                                                  |   |  |                                       | (9,558 | ) |                              |   |        |                 |  |   |       |   |  |   | (9,558  | )
|                                                                    |  |                 |            |   |            |   |    |                |  |   |                                                   |   |  |                                       |        |   |                              |   |         |                 |  |   |        |   |  |   |         |  
|Balances at March 31, 2018                                          |  |                 | 24,463,119 |   |            | $ | 24 |                |  | $ | 369,963                                           |   |  | $                                     | 3,506  |   |                              | $ | 3,530   |                 |  | $ | 21,135 |   |  | $ | 398,158 |  
|                                                                    |  |                 |            |   |            |   |    |                |  |   |                                                   |   |  |                                       |        |   |                              |   |         |                 |  |   |        |   |  |   |         |  

See Notes to Consolidated Financial Statements (unaudited).



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Cash Flows (unaudited)

(in thousands)



|                                                                                                                           |  |                              |         |   |      |   |         |  
|-------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------- | ------- | - | ---- | - | ------- | -
|                                                                                                                           |  | Three Months Ended March 31, |        
|                                                                                                                           |  | 2018                         |         |   | 2017 |  
|Cash Flows from Operating Activities:                                                                                      |  |                              |         |   |      |   |         |  
|Net increase in net assets resulting from operations                                                                       |  | $                            | 15,025  |   |      | $ | 9,532   |  
|Adjustments to reconcile net increase in net assets resulting from operations to net cash (used
for) operating activities: |  |                              |         |   |      |   |         |  
|Net change in unrealized (appreciation) depreciation on investments                                                        |  |                              | (2,117  | ) |      |   | 3,406   |  
|Net realized (gain) loss on investments                                                                                    |  |                              | (7,278  | ) |      |   | (6,464  | )
|Interest and dividend income
paid-in-kind                                                                                  |  |                              | (1,724  | ) |      |   | (1,698  | )
|Accretion of original issue discount                                                                                       |  |                              | (57     | ) |      |   | (128    | )
|Accretion of loan origination fees                                                                                         |  |                              | (214    | ) |      |   | (346    | )
|Purchase of investments                                                                                                    |  |                              | (60,913 | ) |      |   | (55,004 | )
|Proceeds from sales and repayments of investments                                                                          |  |                              | 36,093  |   |      |   | 47,746  |  
|Proceeds from loan origination fees                                                                                        |  |                              | 323     |   |      |   | 340     |  
|Amortization of deferred financing costs                                                                                   |  |                              | 467     |   |      |   | 341     |  
|Changes in operating assets and liabilities:                                                                               |  |                              |         |   |      |   |         |  
|Interest receivable                                                                                                        |  |                              | 1,256   |   |      |   | (745    | )
|Prepaid expenses and other assets                                                                                          |  |                              | (293    | ) |      |   | (19     | )
|Accrued interest and fees payable                                                                                          |  |                              | (1,662  | ) |      |   | (2,369  | )
|Management and incentive fees payable  due to affiliate                                                                   |  |                              | 1,699   |   |      |   | 284     |  
|Administration fee payable and other  due to affiliate                                                                    |  |                              | (137    | ) |      |   | (350    | )
|Taxes payable                                                                                                              |  |                              | 1,635   |   |      |   | 1,035   |  
|Accounts payable and other liabilities                                                                                     |  |                              | 122     |   |      |   | (297    | )
|                                                                                                                           |  |                              |         |   |      |   |         |  
|Net cash (used for) operating activities                                                                                   |  |                              | (17,775 | ) |      |   | (4,736  | )
|                                                                                                                           |  |                              |         |   |      |   |         |  
|Cash Flows from Financing Activities:                                                                                      |  |                              |         |   |      |   |         |  
|Expenses related to public offerings of common stock                                                                       |  |                              |        |   |      |   | 51      |  
|Proceeds received from SBA debentures                                                                                      |  |                              | 27,000  |   |      |   |        |  
|Repayments of SBA debentures                                                                                               |  |                              | (43,800 | ) |      |   | (24,750 | )
|Proceeds received from issuance of Public Notes                                                                            |  |                              | 50,000  |   |      |   |        |  
|Proceeds received from (repayments of) borrowings under Credit Facility, net                                               |  |                              | (11,500 | ) |      |   |        |  
|Payment of deferred financing costs                                                                                        |  |                              | (2,560  | ) |      |   |        |  
|Dividends paid to stockholders, including expenses                                                                         |  |                              | (9,558  | ) |      |   | (8,556  | )
|Repurchases of common stock under Stock Repurchase Program                                                                 |  |                              | (582    | ) |      |   |        |  
|                                                                                                                           |  |                              |         |   |      |   |         |  
|Net cash provided by (used for) financing activities                                                                       |  |                              | 9,000   |   |      |   | (33,255 | )
|                                                                                                                           |  |                              |         |   |      |   |         |  
|Net (decrease) in cash and cash equivalents                                                                                |  |                              | (8,775  | ) |      |   | (37,991 | )
|Cash and cash equivalents:                                                                                                 |  |                              |         |   |      |   |         |  
|Beginning of period                                                                                                        |  |                              | 41,572  |   |      |   | 57,083  |  
|                                                                                                                           |  |                              |         |   |      |   |         |  
|End of period                                                                                                              |  | $                            | 32,797  |   |      | $ | 19,092  |  
|                                                                                                                           |  |                              |         |   |      |   |         |  
|Supplemental disclosure of cash flow information:                                                                          |  |                              |         |   |      |   |         |  
|Cash payments for interest                                                                                                 |  | $                            | 4,277   |   |      | $ | 4,612   |  
|Cash payments for taxes, net of tax refunds received                                                                       |  | $                            | 243     |   |      | $ | 346     |  
|Non-cash financing activities:                                                                                             |  |                              |         |   |      |   |         |  
|Shares issued under dividend reinvestment plan                                                                             |  | $                            |        |   |      | $ | 198     |  

See Notes to Consolidated Financial Statements (unaudited).



4



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2018

(in
thousands, except shares)



|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|-------------------------------------------------- |  | --------------------------------- |  | ---------------- | ----------- | - | -------- | ---------- | --------------- | - | ----- | ---- |  | - | ------------- |  |  | -------------------- | ------ |  |  |  | - | -
|Portfolio Company (a)(b)
Investment Type
(c)       |  | Industry                          |  | Rate (d)Cash/PIK |             |   | Maturity |            | PrincipalAmount |   |       | Cost |  |   | FairValue (e) |  |  | Percent ofNet Assets |       
|Control Investments (t)                            |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|FDS Avionics Corp.(dba Flight Display Systems)     |  | Aerospace & Defense Manufacturing |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                   |  |                                   |  |                  | 4.00%/11.00 | % |          | 4/1/2020   |                 | $ | 5,710 |      |  | $ | 5,700         |  |  | $                    | 4,585  |  |  |  |   |  
|Common Equity (7,478 shares) (j)                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 748           |  |  |                      | 365    |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 6,448         |  |  |                      | 4,950  |  |  |  | 1 | %
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Total Control Investments                          |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  | $ | 6,448         |  |  | $                    | 4,950  |  |  |  | 1 | %
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Affiliate Investments
(l)                          |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Apex Microtechnology, Inc.                         |  | Electronic Components Supplier    |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Warrant (2,293 shares) (m)                         |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  | $ | 220           |  |  | $                    | 575    |  |  |  |   |  
|Common Equity (11,690 shares)                      |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,169         |  |  |                      | 3,004  |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,389         |  |  |                      | 3,579  |  |  |  | 1 | %
|FAR Research Inc.                                  |  | Specialty Chemicals               |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Common Equity (1,396 units)                        |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,396         |  |  |                      | 1,660  |  |  |  | 0 | %
|                                                   |  |                                   |  |                  |             |   |         
|Fiber Materials, Inc.                              |  | Aerospace & Defense Manufacturing |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                   |  |                                   |  |                  | 12.00%/0.00 | % |          | 5/30/2022  |                 | $ | 4,044 |      |  |   | 4,030         |  |  |                      | 4,044  |  |  |  |   |  
|Common Equity (10 units)                           |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,000         |  |  |                      | 2,044  |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 5,030         |  |  |                      | 6,088  |  |  |  | 2 | %
|Inflexxion, Inc.                                   |  | Business Services                 |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|First Lien Debt                                    |  |                                   |  |                  | 5.00%/5.00  | % |          | 12/16/2019 |                 |   | 4,534 |      |  |   | 4,525         |  |  |                      | 2,919  |  |  |  |   |  
|Revolving Loan (j)                                 |  |                                   |  |                  | 5.00%/5.00  | % |          | 12/16/2019 |                 |   | 278   |      |  |   | 277           |  |  |                      | 179    |  |  |  |   |  
|Preferred Equity (252,046 units)                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 252           |  |  |                      |       |  |  |  |   |  
|Preferred Equity (308,987 units)                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 309           |  |  |                      |       |  |  |  |   |  
|Preferred Equity (1,400 units)                     |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,400         |  |  |                      |       |  |  |  |   |  
|Preferred Equity (550,000 units)                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 200           |  |  |                      |       |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 6,963         |  |  |                      | 3,098  |  |  |  | 1 | %
|Medsurant Holdings, LLC                            |  | Healthcare Services               |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                   |  |                                   |  |                  | 13.00%/0.00 | % |          | 6/30/2020  |                 |   | 8,823 |      |  |   | 8,780         |  |  |                      | 8,822  |  |  |  |   |  
|Preferred Equity (126,662 units)(h)                |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,346         |  |  |                      | 2,592  |  |  |  |   |  
|Warrant (505,176 units) (h)(m)                     |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 4,516         |  |  |                      | 9,444  |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 14,642        |  |  |                      | 20,858 |  |  |  | 5 | %
|Microbiology Research Associates, Inc.             |  | Healthcare Services               |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt                                  |  |                                   |  |                  | 11.00%/1.50 | % |          | 3/13/2022  |                 |   | 8,699 |      |  |   | 8,683         |  |  |                      | 8,699  |  |  |  |   |  
|Common Equity (1,625,731 units)(j)                 |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,939         |  |  |                      | 3,641  |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 10,622        |  |  |                      | 12,340 |  |  |  | 3 | %
|Mirage Trailers LLC                                |  | Utility Equipment Manufacturing   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)(f)                            |  |                                   |  |                  | 13.19%/1.50 | % |          | 11/25/2020 |                 |   | 6,039 |      |  |   | 5,991         |  |  |                      | 6,039  |  |  |  |   |  
|Common Equity (2,500,000 shares) (g)               |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 2,315         |  |  |                      | 2,995  |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 8,306         |  |  |                      | 9,034  |  |  |  | 2 | %
|Pfanstiehl, Inc.                                   |  | Healthcare Products               |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt                                  |  |                                   |  |                  | 10.50%/0.00 | % |          | 9/29/2022  |                 |   | 6,208 |      |  |   | 6,195         |  |  |                      | 6,208  |  |  |  |   |  
|Common Equity (8,500 units) (j)                    |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 850           |  |  |                      | 10,554 |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 7,045         |  |  |                      | 16,762 |  |  |  | 4 | %
|Pinnergy, Ltd.                                     |  | Oil & Gas Services                |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                               |  |                                   |  |                  | 0.00%/10.00 | % |          | 1/24/2020  |                 |   | 8,000 |      |  |   | 7,988         |  |  |                      | 8,000  |  |  |  |   |  
|Common Equity - Class A-2 (42,500 units) (k)       |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 3,000         |  |  |                      | 23,462 |  |  |  |   |  
|Common Equity - Class B (1,000 units)(k)           |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 3,000         |  |  |                      | 3,000  |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 13,988        |  |  |                      | 34,462 |  |  |  | 9 | %
|Rhino Assembly Company, LLC                        |  | Specialty Distribution            |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                   |  |                                   |  |                  | 12.00%/1.00 | % |          | 2/11/2023  |                 |   | 3,523 |      |  |   | 3,507         |  |  |                      | 3,523  |  |  |  |   |  
|Delayed Draw Commitment ($1,500 commitment)
(i)(j) |  |                                   |  |                  | 12.00%/1.00 | % |          | 5/17/2022  |                 |   |      |      |  |   |              |  |  |                      |       |  |  |  |   |  
|Preferred Equity (7,500 units) (j)(s)              |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 750           |  |  |                      | 1,015  |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 4,257         |  |  |                      | 4,538  |  |  |  | 1 | %



5



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2018

(in
thousands, except shares)



|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|----------------------------------------------------- |  | --------------------------------- |  | ---------------- | ----------- | - | -------- | ---------- | --------------- | - | ------ | ---- |  | - | ------------- |  |  | -------------------- | ------- |  |  |  | -- | -
|Portfolio Company (a)(b)
Investment Type (c)          |  | Industry                          |  | Rate (d)Cash/PIK |             |   | Maturity |            | PrincipalAmount |   |        | Cost |  |   | FairValue (e) |  |  | Percent ofNet Assets |        
|Safety Products Group, LLC (n)                        |  | Safety Products Manufacturing     |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Preferred Equity (749 units) (h)(j)                   |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  | $ |              |  |  | $                    | 12      |  |  |  |    |  
|Common Equity (676 units) ($2,852 commitment)
(h)(j)  |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |              |  |  |                      |        |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |              |  |  |                      | 12      |  |  |  | 0  | %
|Steward Holding LLC(dba Steward Advanced Materials)   |  | Aerospace & Defense Manufacturing |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt                                      |  |                                   |  |                  | 12.00%/3.25 | % |          | 5/12/2021  |                 | $ | 7,441  |      |  |   | 7,421         |  |  |                      | 7,441   |  |  |  |    |  
|Common Equity (1,000,000 units)                       |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,000         |  |  |                      | 564     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 8,421         |  |  |                      | 8,005   |  |  |  | 2  | %
|Trantech Radiator Products, Inc.                      |  | Utility Equipment Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt(j)                                   |  |                                   |  |                  | 14.25%/0.00 | % |          | 5/31/2018  |                 |   | 6,994  |      |  |   | 6,993         |  |  |                      | 6,994   |  |  |  |    |  
|Common Equity (6,875 shares) (j)                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 688           |  |  |                      | 345     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 7,681         |  |  |                      | 7,339   |  |  |  | 2  | %
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Total Affiliate Investments                           |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  | $ | 89,740        |  |  | $                    | 127,775 |  |  |  | 32 | %
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Non-control/Non-affiliate
Investments                 |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Accent Food Services, LLC                             |  | Vending Equipment Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt (k)                                  |  |                                   |  |                  | 10.00%/3.00 | % |          | 5/30/2022  |                 | $ | 29,199 |      |  | $ | 29,071        |  |  | $                    | 28,305  |  |  |  |    |  
|Common Equity (7,885 units) (h)(j)                    |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 800           |  |  |                      | 638     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 29,871        |  |  |                      | 28,943  |  |  |  | 7  | %
|Allied 100 Group, Inc.                                |  | Healthcare Products               |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Subordinated Debt (k)                                 |  |                                   |  |                  | 11.50%/0.00 | % |          | 5/26/2020  |                 |   | 13,000 |      |  |   | 12,975        |  |  |                      | 13,000  |  |  |  |    |  
|Common Equity (1,250,000 units)(j)                    |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,250         |  |  |                      | 1,486   |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 14,225        |  |  |                      | 14,486  |  |  |  | 4  | %
|AVC Investors, LLC (dba Auveco)                       |  | Specialty Distribution            |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt (k)                                  |  |                                   |  |                  | 11.50%/0.00 | % |          | 7/3/2023   |                 |   | 19,000 |      |  |   | 18,909        |  |  |                      | 18,909  |  |  |  |    |  
|Common Equity (5,000 units) (j)                       |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 500     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 19,409        |  |  |                      | 19,409  |  |  |  | 5  | %
|B&B Roadway and Security Solutions, LLC               |  | Component Manufacturing           |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt                                      |  |                                   |  |                  | 10.50%/1.50 | % |          | 8/27/2023  |                 |   | 10,014 |      |  |   | 9,958         |  |  |                      | 9,958   |  |  |  |    |  
|Common Equity (50,000 units) ($133
commitment) (h)(j) |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 500     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 10,458        |  |  |                      | 10,458  |  |  |  | 3  | %
|Caldwell & Gregory, LLC                               |  | Laundry Services                  |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Subordinated Debt                                     |  |                                   |  |                  | 0.00%/12.00 | % |          | 5/31/2022  |                 |   | 3,126  |      |  |   | 3,126         |  |  |                      | 3,126   |  |  |  |    |  
|Common Equity (500,000 units) (h)                     |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 744     |  |  |  |    |  
|Warrant (242,121 units) (h)(m)                        |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 242           |  |  |                      | 325     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 3,868         |  |  |                      | 4,195   |  |  |  | 1  | %
|Cardboard Box LLC(dba Anthonys Coal Fired Pizza)     |  | Restaurants                       |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Common Equity (521,021 units) (j)                     |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 521           |  |  |                      | 69      |  |  |  | 0  | %
|                                                      |  |                                   |  |                  |             |   |         
|Cavallo Bus Lines Holdings, LLC                       |  | Transportation services           |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt                                      |  |                                   |  |                  | 12.75%/1.50 | % |          | 4/26/2021  |                 |   | 7,398  |      |  |   | 7,375         |  |  |                      | 6,370   |  |  |  | 2  | %
|                                                      |  |                                   |  |                  |             |   |         
|Consolidated Infrastructure Group Holdings, LP        |  | Business Services                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt                                      |  |                                   |  |                  | 11.25%/1.50 | % |          | 11/30/2022 |                 |   | 2,010  |      |  |   | 2,001         |  |  |                      | 2,001   |  |  |  |    |  
|Common Equity (298 units)                             |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 500     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 2,501         |  |  |                      | 2,501   |  |  |  | 1  | %
|ControlScan, Inc.                                     |  | Information Technology Services   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Subordinated Debt (j)                                 |  |                                   |  |                  | 11.00%/0.00 | % |          | 1/28/2023  |                 |   | 6,750  |      |  |   | 6,720         |  |  |                      | 6,750   |  |  |  |    |  
|Common Equity (3,704 shares) (j)                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 4             |  |  |                      | 436     |  |  |  |    |  
|Preferred Equity (100 shares) (j)                     |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 996           |  |  |                      | 996     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 7,720         |  |  |                      | 8,182   |  |  |  | 2  | %
|CRS Solutions Holdings, LLC (dba CRS Texas)           |  | Business Services                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt                                      |  |                                   |  |                  | 10.50%/1.00 | % |          | 9/14/2023  |                 |   | 9,005  |      |  |   | 8,960         |  |  |                      | 8,960   |  |  |  |    |  
|Common Equity (750,000 units) (j)                     |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 750           |  |  |                      | 750     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 9,710         |  |  |                      | 9,710   |  |  |  | 2  | %
|EBL, LLC (EbLens)                                     |  | Retail                            |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt (j)                                  |  |                                   |  |                  | 12.00%/1.00 | % |          | 1/13/2023  |                 |   | 9,317  |      |  |   | 9,237         |  |  |                      | 9,318   |  |  |  |    |  
|Common Equity (75,000 units) (j)                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 750           |  |  |                      | 714     |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 9,987         |  |  |                      | 10,032  |  |  |  | 3  | %



6



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2018

(in
thousands, except shares)



|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|---------------------------------------------------- |  | ------------------------------- |  | ---------------- | ----------- | - | -------- |  | --------- | --------------- |  | - | ------ |  |  | ------------- | ------ | - | -------------------- | - | ------ |  |  |  | - | -
|Portfolio Company (a)(b)
Investment Type
(c)         |  | Industry                        |  | Rate (d)Cash/PIK |             |   | Maturity |  |           | PrincipalAmount |  |   | Cost   |  |  | FairValue (e) |        |   | Percent ofNet Assets |  
|Gurobi Optimization, LLC                             |  | Information Technology Services |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Subordinated Debt (k)                                |  |                                 |  |                  | 11.00%/0.00 | % |          |  | 6/19/2023 |                 |  | $ | 20,000 |  |  | $             | 19,905 |   |                      | $ | 19,905 |  |  |  |   |  
|Common Equity (5 shares)                             |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 1,500  |   |                      |   | 1,500  |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 21,405 |   |                      |   | 21,405 |  |  |  | 5 | %
|Hilco Plastics Holdings, LLC(dba Hilco Technologies) |  | Component Manufacturing         |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Subordinated Debt                                    |  |                                 |  |                  | 11.50%/4.00 | % |          |  | 7/15/2022 |                 |  |   | 8,311  |  |  |               | 8,281  |   |                      |   | 6,823  |  |  |  |   |  
|Common Equity (72,507 units) (h)(j)                  |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 500    |   |                      |   | 158    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 8,781  |   |                      |   | 6,981  |  |  |  | 2 | %
|Hub Acquisition Sub, LLC(dba Hub Pen)                |  | Promotional products            |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Second Lien Debt (k)                                 |  |                                 |  |                  | 12.25%/0.00 | % |          |  | 9/23/2021 |                 |  |   | 16,750 |  |  |               | 16,691 |   |                      |   | 16,750 |  |  |  |   |  
|Common Equity (7,500 units)                          |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 276    |   |                      |   | 968    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 16,967 |   |                      |   | 17,718 |  |  |  | 4 | %
|Ice House America, LLC                               |  | Vending Equipment Manufacturing |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Second Lien Debt (j)                                 |  |                                 |  |                  | 12.00%/3.00 | % |          |  | 1/1/2020  |                 |  |   | 4,400  |  |  |               | 4,314  |   |                      |   | 4,400  |  |  |  |   |  
|Warrant (1,957,895 units) (h)(j)(m)                  |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 216    |   |                      |   | 241    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 4,530  |   |                      |   | 4,641  |  |  |  | 1 | %
|inthinc Technology Solutions, Inc.
(n)               |  | Information Technology Services |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Royalty Rights                                       |  |                                 |  |                  |             |   |          |  | 4/24/2020 |                 |  |   |        |  |  |               | 185    |   |                      |   |       |  |  |  | 0 | %
|                                                     |  |                                 |  |                  |             |   |         
|IOS Acquisitions, Inc. (n)                           |  | Oil & Gas Services              |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Common Equity (2,152 units) (j)                      |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 81     |   |                      |   |       |  |  |  | 0 | %
|                                                     |  |                                 |  |                  |             |   |         
|Jacob Ash Holdings, Inc.                             |  | Apparel Distribution            |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Second Lien Debt (k)                                 |  |                                 |  |                  | 17.00%/0.00 | % |          |  | 6/30/2018 |                 |  |   | 4,000  |  |  |               | 4,000  |   |                      |   | 4,000  |  |  |  |   |  
|Subordinated Debt                                    |  |                                 |  |                  | 13.00%/0.00 | % |          |  | 6/30/2018 |                 |  |   | 76     |  |  |               | 75     |   |                      |   | 76     |  |  |  |   |  
|Preferred Equity (66,138 shares) (g)                 |  |                                 |  |                  | 0.00%/15.00 | % |          |  | 6/30/2018 |                 |  |   |        |  |  |               | 1,282  |   |                      |   | 1,283  |  |  |  |   |  
|Warrant (63,492 shares) (m)                          |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 67     |   |                      |   |       |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 5,424  |   |                      |   | 5,359  |  |  |  | 1 | %
|K2 Industrial Services, Inc.                         |  | Industrial Cleaning & Coatings  |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Tranche A Loan                                       |  |                                 |  |                  | 11.75%/2.50 | % |          |  | 4/25/2022 |                 |  |   | 10,369 |  |  |               | 10,336 |   |                      |   | 10,369 |  |  |  |   |  
|Tranche B Loan                                       |  |                                 |  |                  | 11.75%/7.25 | % |          |  | 4/25/2022 |                 |  |   | 2,220  |  |  |               | 2,214  |   |                      |   | 2,220  |  |  |  |   |  
|Common Equity (1,673 shares)                         |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 1,268  |   |                      |   | 383    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 13,818 |   |                      |   | 12,972 |  |  |  | 3 | %
|The Kyjen Company, LLC(dba Outward Hound)            |  | Consumer Products               |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Second Lien Debt (k)                                 |  |                                 |  |                  | 12.00%/0.00 | % |          |  | 6/8/2024  |                 |  |   | 14,500 |  |  |               | 14,430 |   |                      |   | 14,430 |  |  |  |   |  
|Common Equity (750 shares) (j)                       |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 750    |   |                      |   | 750    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 15,180 |   |                      |   | 15,180 |  |  |  | 4 | %
|LNG Indy, LLC(dba Kinetrex Energy)                   |  | Oil & Gas Distribution          |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Second Lien Debt (k)                                 |  |                                 |  |                  | 11.50%/0.00 | % |          |  | 9/28/2021 |                 |  |   | 5,000  |  |  |               | 4,981  |   |                      |   | 5,000  |  |  |  |   |  
|Common Equity (1,000 units)                          |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 1,000  |   |                      |   | 1,371  |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 5,981  |   |                      |   | 6,371  |  |  |  | 2 | %
|Marco Group International OpCo, LLC                  |  | Industrial Cleaning & Coatings  |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Second Lien Debt                                     |  |                                 |  |                  | 10.50%/0.75 | % |          |  | 1/21/2023 |                 |  |   | 12,064 |  |  |               | 12,011 |   |                      |   | 12,064 |  |  |  |   |  
|Common Equity (750,000 units) (h)(j)                 |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 750    |   |                      |   | 789    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 12,761 |   |                      |   | 12,853 |  |  |  | 3 | %
|Mesa Line Services, LLC                              |  | Utilities: Services             |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|Second Lien Debt (j)                                 |  |                                 |  |                  | 10.50%/1.00 | % |          |  | 5/31/2023 |                 |  |   | 9,131  |  |  |               | 9,074  |   |                      |   | 9,074  |  |  |  |   |  
|Delayed Draw Commitment ($4,000
commitment) (i)(j)   |  |                                 |  |                  | 10.50%/1.00 | % |          |  | 5/31/2019 |                 |  |   |       |  |  |               | (10    | ) |                      |   |       |  |  |  |   |  
|Common Equity (500 shares) (j)                       |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 500    |   |                      |   | 500    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               |        |   |                      |   |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |  |           |                 |  |   |        |  |  |               | 9,564  |   |                      |   | 9,574  |  |  |  | 2 | %



7



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2018

(in
thousands, except shares)



|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|------------------------------------------------------------ |  | ------------------------------- |  | ---------------- | ----------- | - | -------- |  | ---------- | --------------- |  | - | ------ |  |  | ------------- | ------ |  | -------------------- | - | ------ |  |  |  | - | -
|Portfolio Company (a)(b)
Investment Type
(c)                 |  | Industry                        |  | Rate (d)Cash/PIK |             |   | Maturity |  |            | PrincipalAmount |  |   | Cost   |  |  | FairValue (e) |        |  | Percent ofNet Assets |  
|Midwest Transit Equipment, Inc.                              |  | Transportation services         |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Subordinated Debt (j)                                        |  |                                 |  |                  | 11.00%/2.00 | % |          |  | 6/23/2022  |                 |  | $ | 12,065 |  |  | $             | 11,385 |  |                      | $ | 12,065 |  |  |  |   |  
|Warrant (14,384 shares) (j)(m)                               |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 361    |  |                      |   | 162    |  |  |  |   |  
|Warrant (9.59% of Junior Subordinated Notes)
(j)(q)          |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 381    |  |                      |   | 412    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 12,127 |  |                      |   | 12,639 |  |  |  | 3 | %
|New Era Technology, Inc.                                     |  | Information Technology Services |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Second Lien Debt(j)                                          |  |                                 |  |                  | 11.00%/1.50 | % |          |  | 9/3/2022   |                 |  |   | 11,690 |  |  |               | 11,645 |  |                      |   | 11,690 |  |  |  |   |  
|Common Equity (197,369 shares)(j)                            |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 750    |  |                      |   | 695    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 12,395 |  |                      |   | 12,385 |  |  |  | 3 | %
|NGT Acquisition Holdings, LLC(dba Techniks Industries)       |  | Component Manufacturing         |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Subordinated Debt                                            |  |                                 |  |                  | 12.50%/0.00 | % |          |  | 3/21/2022  |                 |  |   | 11,000 |  |  |               | 10,955 |  |                      |   | 11,000 |  |  |  |   |  
|Common Equity (378 units) (j)                                |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 500    |  |                      |   | 366    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 11,455 |  |                      |   | 11,366 |  |  |  | 3 | %
|Oaktree Medical Centre, P.C.(dba Pain Management Associates) |  | Healthcare Services             |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|First Lien Debt(j)(u)                                        |  |                                 |  |                  | 11.50%/0.00 | % |          |  | 1/1/2018   |                 |  |   | 571    |  |  |               | 649    |  |                      |   | 615    |  |  |  |   |  
|First Lien Debt (j)(u)                                       |  |                                 |  |                  | 7.00%/12.00 | % |          |  | 1/1/2018   |                 |  |   | 7,053  |  |  |               | 7,640  |  |                      |   | 7,387  |  |  |  |   |  
|Revolving Loan (j)(u)                                        |  |                                 |  |                  | 11.50%/0.00 | % |          |  | 1/1/2018   |                 |  |   | 2,500  |  |  |               | 2,835  |  |                      |   | 2,772  |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 11,124 |  |                      |   | 10,774 |  |  |  | 3 | %
|OMC Investors, LLC(dba Ohio Medical Corporation)             |  | Healthcare Products             |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Second Lien Debt                                             |  |                                 |  |                  | 12.00%/0.00 | % |          |  | 7/15/2021  |                 |  |   | 10,000 |  |  |               | 9,940  |  |                      |   | 8,245  |  |  |  |   |  
|Common Equity (5,000 units)                                  |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 500    |  |                      |   | 144    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 10,440 |  |                      |   | 8,389  |  |  |  | 2 | %
|Palmetto Moon, LLC                                           |  | Retail                          |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|First Lien Debt                                              |  |                                 |  |                  | 11.50%/1.00 | % |          |  | 10/31/2021 |                 |  |   | 5,556  |  |  |               | 5,527  |  |                      |   | 5,556  |  |  |  |   |  
|Common Equity (499 units) (j)                                |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 499    |  |                      |   | 334    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 6,026  |  |                      |   | 5,890  |  |  |  | 1 | %
|Plymouth Rock Energy, LLC                                    |  | Business Services               |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Second Lien Debt (k)                                         |  |                                 |  |                  | 11.00%/0.00 | % |          |  | 6/30/2019  |                 |  |   | 5,345  |  |  |               | 5,345  |  |                      |   | 5,345  |  |  |  | 1 | %
|                                                             |  |                                 |  |                  |             |   |         
|Pugh Lubricants, LLC                                         |  | Specialty Distribution          |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Second Lien Debt (k)                                         |  |                                 |  |                  | 12.25%/0.00 | % |          |  | 5/10/2022  |                 |  |   | 18,581 |  |  |               | 18,509 |  |                      |   | 18,581 |  |  |  |   |  
|Common Equity (6,125 units) (h)(j)                           |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 612    |  |                      |   | 931    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 19,121 |  |                      |   | 19,512 |  |  |  | 5 | %
|Restaurant Finance Co, LLC                                   |  | Restaurants                     |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Second Lien Debt (k)(p)                                      |  |                                 |  |                  | 15.00%/4.00 | % |          |  | 7/31/2020  |                 |  |   | 9,342  |  |  |               | 9,314  |  |                      |   | 1,989  |  |  |  | 0 | %
|                                                             |  |                                 |  |                  |             |   |         
|Revenue Management Solutions, LLC                            |  | Information Technology Services |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Subordinated Debt (k)                                        |  |                                 |  |                  | 11.50%/1.00 | % |          |  | 7/4/2022   |                 |  |   | 8,860  |  |  |               | 8,792  |  |                      |   | 8,860  |  |  |  |   |  
|Common Equity (2,250,000 shares)                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 2,250  |  |                      |   | 2,873  |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 11,042 |  |                      |   | 11,733 |  |  |  | 3 | %
|Rohrer Corporation                                           |  | Packaging                       |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Common Equity (389 shares)                                   |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 750    |  |                      |   | 894    |  |  |  | 0 | %
|                                                             |  |                                 |  |                  |             |   |         
|SES Investors, LLC(dba SES Foam)                             |  | Building Products Manufacturing |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|Second Lien Debt                                             |  |                                 |  |                  | 13.00%/0.00 | % |          |  | 12/29/2020 |                 |  |   | 4,095  |  |  |               | 4,059  |  |                      |   | 3,281  |  |  |  |   |  
|Common Equity (6,000 units) (h)(j)                           |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 600    |  |                      |   |       |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               |        |  |                      |   |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |  |            |                 |  |   |        |  |  |               | 4,659  |  |                      |   | 3,281  |  |  |  | 1 | %



8



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2018

(in
thousands, except shares)



|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|----------------------------------------------------------- |  | --------------------------------- |  | ---------------- | ----------- | - | -------- | ---------- | --------------- | - | ------ | ---- |  | - | ------------- |  |  | -------------------- | ------ |  |  |  | - | -
|Portfolio Company (a)(b)
Investment Type
(c)                |  | Industry                          |  | Rate (d)Cash/PIK |             |   | Maturity |            | PrincipalAmount |   |        | Cost |  |   | FairValue (e) |  |  | Percent ofNet Assets |       
|Simplex Manufacturing Co.                                   |  | Aerospace & Defense Manufacturing |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt                                           |  |                                   |  |                  | 14.00%/0.00 | % |          | 11/1/2018  |                 | $ | 4,050  |      |  | $ | 4,050         |  |  | $                    | 4,050  |  |  |  |   |  
|Warrant (29 shares) (m)                                     |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,155         |  |  |                      | 3,016  |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 5,205         |  |  |                      | 7,066  |  |  |  | 2 | %
|SimplyWell, Inc.                                            |  | Healthcare Services               |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                            |  |                                   |  |                  | 12.00%/1.25 | % |          | 2/23/2021  |                 |   | 10,077 |      |  |   | 10,036        |  |  |                      | 10,077 |  |  |  |   |  
|Preferred Equity (309,142 shares)                           |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 524    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 10,536        |  |  |                      | 10,601 |  |  |  | 3 | %
|Six Month Smiles Holdings, Inc.                             |  | Healthcare Products               |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (j)(p)                                     |  |                                   |  |                  | 1.99%/12.51 | % |          | 7/31/2020  |                 |   | 9,395  |      |  |   | 9,377         |  |  |                      |       |  |  |  | 0 | %
|                                                            |  |                                   |  |                  |             |   |         
|Software Technology, LLC                                    |  | Information Technology Services   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt (k)                                       |  |                                   |  |                  | 11.00%/0.00 | % |          | 6/23/2023  |                 |   | 8,750  |      |  |   | 8,715         |  |  |                      | 8,750  |  |  |  |   |  
|Common Equity (11 shares)                                   |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,125         |  |  |                      | 1,202  |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 9,840         |  |  |                      | 9,952  |  |  |  | 2 | %
|SpendMend, LLC                                              |  | Business Services                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                        |  |                                   |  |                  | 11.00%/1.00 | % |          | 7/8/2023   |                 |   | 10,023 |      |  |   | 9,971         |  |  |                      | 9,971  |  |  |  |   |  
|Common Equity (1,000,000 units)                             |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,000         |  |  |                      | 1,000  |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 10,971        |  |  |                      | 10,971 |  |  |  | 3 | %
|The Wolf Organization, LLC                                  |  | Building Products Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Common Equity (175 shares)                                  |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,445         |  |  |                      | 4,853  |  |  |  | 1 | %
|                                                            |  |                                   |  |                  |             |   |         
|Thermoforming Technology Group LLC(dba Brown Machine Group) |  | Capital Equipment Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                        |  |                                   |  |                  | 12.50%/0.00 | % |          | 9/14/2021  |                 |   | 23,200 |      |  |   | 23,115        |  |  |                      | 23,200 |  |  |  |   |  
|Common Equity (3,760 units) (h)(j)                          |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 227           |  |  |                      | 472    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 23,342        |  |  |                      | 23,672 |  |  |  | 6 | %
|Tile Redi, LLC                                              |  | Building Products Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|First Lien Debt(j)(r)                                       |  |                                   |  |                  | 11.69%/0.00 | % |          | 6/16/2022  |                 |   | 10,194 |      |  |   | 10,107        |  |  |                      | 10,194 |  |  |  | 3 | %
|                                                            |  |                                   |  |                  |             |   |         
|Toledo Molding & Die, Inc.                                  |  | Component Manufacturing           |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt(j)                                         |  |                                   |  |                  | 10.50%/0.00 | % |          | 12/18/2018 |                 |   | 10,000 |      |  |   | 9,973         |  |  |                      | 10,000 |  |  |  | 3 | %
|                                                            |  |                                   |  |                  |             |   |         
|TransGo, LLC                                                |  | Component Manufacturing           |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                            |  |                                   |  |                  | 13.25%/0.00 | % |          | 8/28/2022  |                 |   | 9,500  |      |  |   | 9,462         |  |  |                      | 9,500  |  |  |  |   |  
|Common Equity (1,000 units)                                 |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,000         |  |  |                      | 767    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 10,462        |  |  |                      | 10,267 |  |  |  | 3 | %
|The Tranzonic Companies                                     |  | Specialty Distribution            |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt (j)                                       |  |                                   |  |                  | 10.00%/1.50 | % |          | 3/27/2025  |                 |   | 5,601  |      |  |   | 5,545         |  |  |                      | 5,545  |  |  |  |   |  
|Preferred Equity (5,000 units) (j)                          |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 500    |  |  |  |   |  
|Common Equity (1 units) (j)                                 |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |              |  |  |                      |       |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 6,045         |  |  |                      | 6,045  |  |  |  | 2 | %
|United Biologics, LLC                                       |  | Healthcare Services               |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Preferred Equity (98,377 units)
(h)(j)                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,069         |  |  |                      | 665    |  |  |  |   |  
|Warrant (57,469 units) (m)                                  |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 566           |  |  |                      | 176    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,635         |  |  |                      | 841    |  |  |  | 0 | %
|US GreenFiber, LLC                                          |  | Building Products Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt(k)                                         |  |                                   |  |                  | 12.00%/2.00 | % |          | 3/1/2019   |                 |   | 14,220 |      |  |   | 14,206        |  |  |                      | 13,187 |  |  |  |   |  
|Common Equity (2,522 units) (h)(j)                          |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 586           |  |  |                      |       |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 14,792        |  |  |                      | 13,187 |  |  |  | 3 | %
|US Pack Logistics LLC                                       |  | Transportation services           |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt(k)                                         |  |                                   |  |                  | 12.00%/1.75 | % |          | 3/28/2023  |                 |   | 7,313  |      |  |   | 7,290         |  |  |                      | 7,313  |  |  |  |   |  
|Common Equity (5,833 units) (h)(j)                          |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 583           |  |  |                      | 1,099  |  |  |  |   |  
|Preferred Equity (9,458 units) (h)(j)                       |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 946           |  |  |                      | 988    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 8,819         |  |  |                      | 9,400  |  |  |  | 2 | %
|Vanguard Dealer Services, L.L.C.                            |  | Business Services                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                            |  |                                   |  |                  | 12.25%/0.00 | % |          | 8/2/2023   |                 |   | 11,450 |      |  |   | 11,418        |  |  |                      | 11,450 |  |  |  |   |  
|Common Equity (6,000 units)                                 |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 600           |  |  |                      | 1,090  |  |  |  |   |  
|Common Equity (2,380 units) (j)                             |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 504           |  |  |                      | 432    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 12,522        |  |  |                      | 12,972 |  |  |  | 3 | %
|Virginia Tile Company, LLC                                  |  | Specialty Distribution            |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                        |  |                                   |  |                  | 12.25%/0.00 | % |          | 4/7/2022   |                 |   | 12,000 |      |  |   | 11,972        |  |  |                      | 12,000 |  |  |  |   |  
|Common Equity (17 units)                                    |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 342           |  |  |                      | 1,546  |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 12,314        |  |  |                      | 13,546 |  |  |  | 4 | %



9



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited) (continued)

March 31, 2018

(in
thousands, except shares)



|                                             |  |                         |  |                  |             |   |          |          |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |     |  
|-------------------------------------------- |  | ----------------------- |  | ---------------- | ----------- | - | -------- | -------- | --------------- | - | ------ | ---- |  | - | ------------- |  |  | -------------------- | ------- |  |  |  | --- | -
|Portfolio Company (a)(b)
Investment Type
(c) |  | Industry                |  | Rate (d)Cash/PIK |             |   | Maturity |          | PrincipalAmount |   |        | Cost |  |   | FairValue (e) |  |  | Percent ofNet Assets |        
|Worldwide Express Operations, LLC            |  | Transportation services |  |                  |             |   |          |          |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |     |  
|Second Lien Debt (j)(o)                      |  |                         |  |                  | 10.72%/0.00 | % |          | 2/3/2025 |                 | $ | 10,000 |      |  | $ | 9,871         |  |  | $                    | 10,000  |  |  |  |     |  
|Common Equity (4,000 units) (h)(j)           |  |                         |  |                  |             |   |          |          |                 |   |        |      |  |   | 4,000         |  |  |                      | 4,297   |  |  |  |     |  
|                                             |  |                         |  |                  |             |   |          |          |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |     |  
|                                             |  |                         |  |                  |             |   |          |          |                 |   |        |      |  |   | 13,871        |  |  |                      | 14,297  |  |  |  | 4   | %
|                                             |  |                         |  |                  |             |   |          |          |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |     |  
|Total
Non-control/Non-affiliate Investments  |  |                         |  |                  |             |   |          |          |                 |   |        |      |  | $ | 515,376       |  |  | $                    | 499,470 |  |  |  | 126 | %
|                                             |  |                         |  |                  |             |   |          |          |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |     |  
|Total Investments                            |  |                         |  |                  |             |   |          |          |                 |   |        |      |  | $ | 611,564       |  |  | $                    | 632,195 |  |  |  | 159 | %
|                                             |  |                         |  |                  |             |   |          |          |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |     |  



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

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

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

|(d) | Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of March 31, 2018. Generally, payment-in-kind interest can be paid-in-kind or all in cash.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The Companys investment portfolio is comprised entirely of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are
not available. Therefore, the Company values all of its portfolio investments at fair value, as determined in good faith by the board of directors, using significant unobservable Level 3 inputs.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | The investment bears cash interest at a variable rate that is determined by reference to one-month LIBOR, which is reset monthly. The cash interest rate is set as one-month LIBOR + 11.50% and is subject to a 12.50% interest rate floor. The Company has provided the interest rate in effect as of March 31, 2018.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|(h) | Investment is held by a wholly-owned subsidiary of the Company, other than the Funds.
|--- | -------------------------------------------------------------------------------------

|(i) | The entire commitment was unfunded at March 31, 2018. The Company is earning 0.50% interest on the unfunded balance of the commitment.
|--- | --------------------------------------------------------------------------------------------------------------------------------------

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

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

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

|(m) | Warrants entitle the Company to purchase a predetermined number of shares or units of common equity, and are non-income producing. The purchase price and number of shares are
subject to adjustment under certain conditions until the expiration date, if any.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|(o) | The investment bears interest at a variable rate that is determined by reference to six-month LIBOR, which is reset semi-annually. The interest rate is set as six-month LIBOR + 8.75% and is subject to a 1.00% LIBOR interest rate floor. The Company has provided the interest rate in effect as of March 31, 2018.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(p) | Investment was on non-accrual status as of March 31, 2018, meaning the Company has ceased recognizing interest income on the investment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------

|(q) | Warrant entitles the Company to purchase 9.59% of the outstanding principal of Junior Subordinated Notes prior to exercise, and is non-income producing.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------

|(r) | The investment bears interest at a variable rate that is determined by reference to three-month LIBOR, which is reset quarterly. The interest rate is set as three-month LIBOR + 10.00% and is subject to a 1.00% LIBOR
interest rate floor. The Company has provided the interest rate in effect as of March 31, 2018.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(s) | A portion of the investment is held by a wholly-owned subsidiary of the Company, other than the Funds.
|--- | ------------------------------------------------------------------------------------------------------

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

|(u) | The debt investment continues to pay interest, including the default rate, while the portfolio company pursues refinancing options.
|--- | -----------------------------------------------------------------------------------------------------------------------------------

See Notes to Consolidated Financial Statements (unaudited).



10



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2017

(in thousands, except shares)



|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|------------------------------------------------- |  | --------------------------------- |  | ---------------- | ----------- | - | -------- | ---------- | --------------- | - | ----- | ---- |  | - | ------------- |  |  | -------------------- | ------ |  |  |  | - | -
|Portfolio Company (a)(b)
Investment Type (c)      |  | Industry                          |  | Rate (d)Cash/PIK |             |   | Maturity |            | PrincipalAmount |   |       | Cost |  |   | FairValue (e) |  |  | Percent ofNet Assets |       
|Control Investments (t)                           |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|FDS Avionics Corp.(dba Flight Display Systems)    |  | Aerospace & Defense Manufacturing |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                  |  |                                   |  |                  | 4.00%/11.00 | % |          | 4/1/2020   |                 | $ | 5,556 |      |  | $ | 5,546         |  |  | $                    | 4,348  |  |  |  |   |  
|Common Equity (7,478 shares) (j)                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 748           |  |  |                      | 375    |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 6,294         |  |  |                      | 4,723  |  |  |  | 1 | %
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Total Control Investments                         |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  | $ | 6,294         |  |  | $                    | 4,723  |  |  |  | 1 | %
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Affiliate Investments
(l)                         |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Apex Microtechnology, Inc.                        |  | Electronic Components Supplier    |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Warrant (2,293 shares) (m)                        |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  | $ | 220           |  |  | $                    | 543    |  |  |  |   |  
|Common Equity (11,690 shares)                     |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,169         |  |  |                      | 2,857  |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,389         |  |  |                      | 3,400  |  |  |  | 1 | %
|FAR Research Inc.                                 |  | Specialty Chemicals               |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Common Equity (1,396 units)                       |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,396         |  |  |                      | 1,447  |  |  |  | 0 | %
|                                                  |  |                                   |  |                  |             |   |         
|Fiber Materials, Inc.                             |  | Aerospace & Defense Manufacturing |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                  |  |                                   |  |                  | 12.00%/1.00 | % |          | 5/30/2022  |                 |   | 4,044 |      |  |   | 4,028         |  |  |                      | 4,044  |  |  |  |   |  
|Common Equity (10 units)                          |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,000         |  |  |                      | 1,838  |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 5,028         |  |  |                      | 5,882  |  |  |  | 1 | %
|Inflexxion, Inc.                                  |  | Business Services                 |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|First Lien Debt                                   |  |                                   |  |                  | 5.00%/5.00  | % |          | 12/16/2019 |                 |   | 4,478 |      |  |   | 4,468         |  |  |                      | 2,647  |  |  |  |   |  
|Revolving Loan ($275 commitment)(j)               |  |                                   |  |                  | 5.00%/5.00  | % |          | 12/16/2019 |                 |   | 275   |      |  |   | 273           |  |  |                      | 163    |  |  |  |   |  
|Preferred Equity (252,046 units)                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 252           |  |  |                      |       |  |  |  |   |  
|Preferred Equity (308,987 units)                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 309           |  |  |                      |       |  |  |  |   |  
|Preferred Equity (1,400 units)                    |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,400         |  |  |                      |       |  |  |  |   |  
|Preferred Equity (550,000 units)                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 200           |  |  |                      |       |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 6,902         |  |  |                      | 2,810  |  |  |  | 1 | %
|Medsurant Holdings, LLC                           |  | Healthcare Services               |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                  |  |                                   |  |                  | 12.25%/0.75 | % |          | 6/30/2020  |                 |   | 8,824 |      |  |   | 8,776         |  |  |                      | 8,824  |  |  |  |   |  
|Preferred Equity (126,662 units) (h)              |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,346         |  |  |                      | 2,753  |  |  |  |   |  
|Warrant (505,176 units) (h)(m)                    |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 4,516         |  |  |                      | 10,048 |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 14,638        |  |  |                      | 21,625 |  |  |  | 5 | %
|Microbiology Research Associates, Inc.            |  | Healthcare Services               |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt                                 |  |                                   |  |                  | 11.00%/1.50 | % |          | 3/13/2022  |                 |   | 8,667 |      |  |   | 8,649         |  |  |                      | 8,667  |  |  |  |   |  
|Common Equity (1,625,731 units)(j)                |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 1,939         |  |  |                      | 3,788  |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 10,588        |  |  |                      | 12,455 |  |  |  | 3 | %
|Mirage Trailers LLC                               |  | Utility Equipment Manufacturing   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)(f)                           |  |                                   |  |                  | 12.88%/1.50 | % |          | 11/25/2020 |                 |   | 6,017 |      |  |   | 5,964         |  |  |                      | 6,017  |  |  |  |   |  
|Common Equity (2,500,000 shares)(g)               |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 2,340         |  |  |                      | 2,939  |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 8,304         |  |  |                      | 8,956  |  |  |  | 2 | %
|Pfanstiehl, Inc.                                  |  | Healthcare Products               |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt                                 |  |                                   |  |                  | 10.50%/0.00 | % |          | 9/29/2021  |                 |   | 6,208 |      |  |   | 6,193         |  |  |                      | 6,208  |  |  |  |   |  
|Common Equity (8,500 units) (j)                   |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 850           |  |  |                      | 9,070  |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 7,043         |  |  |                      | 15,278 |  |  |  | 4 | %
|Pinnergy, Ltd.                                    |  | Oil & Gas Services                |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt(k)                               |  |                                   |  |                  | 0.00%/10.00 | % |          | 1/24/2020  |                 |   | 9,300 |      |  |   | 9,286         |  |  |                      | 9,300  |  |  |  |   |  
|Common Equity - Class A-2 (42,500 units) (k)      |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 3,000         |  |  |                      | 15,621 |  |  |  |   |  
|Common Equity - Class B (1,000 units)
(k)         |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 3,000         |  |  |                      | 3,000  |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 15,286        |  |  |                      | 27,921 |  |  |  | 7 | %
|Rhino Assembly Company, LLC                       |  | Specialty Distribution            |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                  |  |                                   |  |                  | 12.00%/1.00 | % |          | 2/11/2023  |                 |   | 3,514 |      |  |   | 3,498         |  |  |                      | 3,498  |  |  |  |   |  
|Delayed Draw Commitment ($1,500
commitment)(i)(j) |  |                                   |  |                  | 12.00%/1.00 | % |          | 5/17/2022  |                 |   |      |      |  |   |              |  |  |                      |       |  |  |  |   |  
|Preferred Equity (7,500 units) (j)(s)             |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 750           |  |  |                      | 750    |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                  |  |                                   |  |                  |             |   |          |            |                 |   |       |      |  |   | 4,248         |  |  |                      | 4,248  |  |  |  | 1 | %



11



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2017

(in
thousands, except shares)



|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|---------------------------------------------------- |  | --------------------------------- |  | ---------------- | ----------- | -- | -------- | ---------- | --------------- | - | ------ | ---- |  | - | ------------- |  |  | -------------------- | ------- |  |  |  | -- | -
|Portfolio Company (a)(b)
Investment Type
(c)         |  | Industry                          |  | Rate (d)Cash/PIK |             |    | Maturity |            | PrincipalAmount |   |        | Cost |  |   | FairValue (e) |  |  | Percent ofNet Assets |        
|Safety Products Group, LLC (n)                       |  | Safety Products Manufacturing     |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Preferred Equity (749 units) (h)(j)                  |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  | $ |              |  |  | $                    | 12      |  |  |  |    |  
|Common Equity (676 units) ($2,852 commitment)
(h)(j) |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |              |  |  |                      |        |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |              |  |  |                      | 12      |  |  |  | 0  | %
|Steward Holding LLC(dba Steward Advanced Materials)  |  | Aerospace & Defense Manufacturing |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt                                     |  |                                   |  |                  | 12.00%/3.25 | %  |          | 5/12/2021  |                 | $ | 7,382  |      |  |   | 7,360         |  |  |                      | 7,382   |  |  |  |    |  
|Common Equity (1,000,000 units)                      |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 1,000         |  |  |                      | 500     |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 8,360         |  |  |                      | 7,882   |  |  |  | 2  | %
|Trantech Radiator Products, Inc.                     |  | Utility Equipment Manufacturing   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt (j)                                 |  |                                   |  |                  | 14.25%/0.00 | %  |          | 5/31/2018  |                 |   | 6,994  |      |  |   | 6,992         |  |  |                      | 6,694   |  |  |  |    |  
|Common Equity (6,875 shares)(j)                      |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 688           |  |  |                      | 13      |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 7,680         |  |  |                      | 6,707   |  |  |  | 2  | %
|World Wide Packaging, LLC                            |  | Consumer Products                 |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Common Equity (1,517,573 units)
(h)(j)               |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 499           |  |  |                      | 4,388   |  |  |  | 1  | %
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Total Affiliate Investments                          |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  | $ | 91,361        |  |  | $                    | 123,011 |  |  |  | 30 | %
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Non-control/Non-affiliate
Investments                |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Accent Food Services, LLC                            |  | Vending Equipment Manufacturing   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt (k)                                 |  |                                   |  |                  | 10.00%/3.00 | %  |          | 5/30/2022  |                 | $ | 28,983 |      |  | $ | 28,846        |  |  | $                    | 28,984  |  |  |  |    |  
|Common Equity (7,885 units) (h)(j)                   |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 800           |  |  |                      | 635     |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 29,646        |  |  |                      | 29,619  |  |  |  | 8  | %
|Allied 100 Group, Inc.                               |  | Healthcare Products               |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Subordinated Debt (k)                                |  |                                   |  |                  | 11.50%/0.00 | %  |          | 5/26/2020  |                 |   | 13,000 |      |  |   | 12,973        |  |  |                      | 13,000  |  |  |  |    |  
|Common Equity (1,250,000 units) (j)                  |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 1,249         |  |  |                      | 1,425   |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 14,222        |  |  |                      | 14,425  |  |  |  | 4  | %
|Caldwell & Gregory, LLC                              |  | Laundry Services                  |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Subordinated Debt                                    |  |                                   |  |                  | 0.00%/12.00 | %  |          | 5/31/2022  |                 |   | 3,035  |      |  |   | 3,035         |  |  |                      | 3,035   |  |  |  |    |  
|Common Equity (500,000 units) (h)                    |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 625     |  |  |  |    |  
|Warrant (242,121 units) (h)(m)                       |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 242           |  |  |                      | 268     |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 3,777         |  |  |                      | 3,928   |  |  |  | 1  | %
|Cardboard Box LLC(dba Anthonys Coal Fired Pizza)    |  | Restaurants                       |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Common Equity (521,021 units) (j)                    |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 520           |  |  |                      | 85      |  |  |  | 0  | %
|                                                     |  |                                   |  |                  |             |    |         
|Cavallo Bus Lines Holdings, LLC                      |  | Transportation services           |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt                                     |  |                                   |  |                  | 12.75%/0.00 | %  |          | 4/26/2021  |                 |   | 7,395  |      |  |   | 7,370         |  |  |                      | 6,572   |  |  |  | 2  | %
|                                                     |  |                                   |  |                  |             |    |         
|Comprehensive Logistics Co., Inc.                    |  | Business Services                 |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Subordinated Debt (k)                                |  |                                   |  |                  | 11.50%/4.50 | %  |          | 11/22/2021 |                 |   | 15,775 |      |  |   | 15,716        |  |  |                      | 15,775  |  |  |  | 4  | %
|                                                     |  |                                   |  |                  |             |    |         
|Consolidated Infrastructure Group Holdings, LP       |  | Business Services                 |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt                                     |  |                                   |  |                  | 11.25%/1.50 | %  |          | 11/30/2022 |                 |   | 2,002  |      |  |   | 1,993         |  |  |                      | 1,993   |  |  |  |    |  
|Common Equity (298 shares)                           |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 500     |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 2,493         |  |  |                      | 2,493   |  |  |  | 1  | %
|ControlScan, Inc.                                    |  | Information Technology Services   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Subordinated Debt (j)                                |  |                                   |  |                  | 11.00%/0.00 | %  |          | 1/28/2023  |                 |   | 6,750  |      |  |   | 6,719         |  |  |                      | 6,719   |  |  |  |    |  
|Common Equity (3,704 shares) (j)                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 4             |  |  |                      | 4       |  |  |  |    |  
|Preferred Equity (100 shares) (j)                    |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 996           |  |  |                      | 996     |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 7,719         |  |  |                      | 7,719   |  |  |  | 2  | %
|EBL, LLC (EbLens)                                    |  | Retail                            |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|Second Lien Debt (j)                                 |  |                                   |  |                  | 12.00%/1.0  | 0% |          | 1/13/2023  |                 |   | 9,294  |      |  |   | 9,210         |  |  |                      | 9,210   |  |  |  |    |  
|Common Equity (75,000 units) (j)                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 750           |  |  |                      | 750     |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   |               |  |  |                      |         |  |  |  |    |  
|                                                     |  |                                   |  |                  |             |    |          |            |                 |   |        |      |  |   | 9,960         |  |  |                      | 9,960   |  |  |  | 3  | %



12



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2017

(in
thousands, except shares)



|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|---------------------------------------------------- |  | ------------------------------- |  | ---------------- | ----------- | - | -------- | --------- | --------------- | - | ------ | ---- |  | - | ------------- | - |  | -------------------- | ------ |  |  |  | - | -
|Portfolio Company (a)(b)
Investment Type
(c)         |  | Industry                        |  | Rate (d)Cash/PIK |             |   | Maturity |           | PrincipalAmount |   |        | Cost |  |   | FairValue (e) |   |  | Percent ofNet Assets |       
|Gurobi Optimization, LLC                             |  | Information Technology Services |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Subordinated Debt (k)                                |  |                                 |  |                  | 11.00%/0.00 | % |          | 6/19/2023 |                 | $ | 20,000 |      |  | $ | 19,901        |   |  | $                    | 19,901 |  |  |  |   |  
|Common Equity (5 shares)                             |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 1,500         |   |  |                      | 1,500  |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 21,401        |   |  |                      | 21,401 |  |  |  | 5 | %
|Hilco Plastics Holdings, LLC(dba Hilco Technologies) |  | Component Manufacturing         |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Subordinated Debt                                    |  |                                 |  |                  | 11.50%/4.00 | % |          | 7/15/2022 |                 |   | 8,228  |      |  |   | 8,198         |   |  |                      | 7,207  |  |  |  |   |  
|Common Equity (72,507 units) (h)(j)                  |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 500           |   |  |                      | 163    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 8,698         |   |  |                      | 7,370  |  |  |  | 2 | %
|Hub Acquisition Sub, LLC(dba Hub Pen)                |  | Promotional products            |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Second Lien Debt(k)                                  |  |                                 |  |                  | 12.25%/0.00 | % |          | 9/23/2021 |                 |   | 16,750 |      |  |   | 16,685        |   |  |                      | 16,750 |  |  |  |   |  
|Common Equity (7,500 units)                          |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 276           |   |  |                      | 902    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 16,961        |   |  |                      | 17,652 |  |  |  | 4 | %
|Ice House America, LLC                               |  | Vending Equipment Manufacturing |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Second Lien Debt (j)                                 |  |                                 |  |                  | 12.00%/3.00 | % |          | 1/1/2020  |                 |   | 4,367  |      |  |   | 4,269         |   |  |                      | 4,367  |  |  |  |   |  
|Warrant (1,957,895 units) (h)(j)(m)                  |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 215           |   |  |                      | 234    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 4,484         |   |  |                      | 4,601  |  |  |  | 1 | %
|inthinc Technology Solutions, Inc.
(n)               |  | Information Technology Services |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Royalty Rights                                       |  |                                 |  |                  |             |   |          | 4/24/2020 |                 |   |        |      |  |   | 185           |   |  |                      |       |  |  |  | 0 | %
|                                                     |  |                                 |  |                  |             |   |         
|IOS Acquisitions, Inc. (n)                           |  | Oil & Gas Services              |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Common Equity (2,152 units) (j)                      |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 103           |   |  |                      | 17     |  |  |  | 0 | %
|                                                     |  |                                 |  |                  |             |   |         
|Jacob Ash Holdings, Inc.                             |  | Apparel Distribution            |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                 |  |                                 |  |                  | 17.00%/0.00 | % |          | 6/30/2018 |                 |   | 4,000  |      |  |   | 3,999         |   |  |                      | 4,000  |  |  |  |   |  
|Subordinated Debt                                    |  |                                 |  |                  | 13.00%/0.00 | % |          | 6/30/2018 |                 |   | 510    |      |  |   | 509           |   |  |                      | 510    |  |  |  |   |  
|Preferred Equity (66,138 shares) (g)                 |  |                                 |  |                  | 0.00%/15.00 | % |          | 6/30/2018 |                 |   |        |      |  |   | 1,238         |   |  |                      | 1,152  |  |  |  |   |  
|Warrant (63,492 shares) (m)                          |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 67            |   |  |                      |       |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 5,813         |   |  |                      | 5,662  |  |  |  | 1 | %
|K2 Industrial Services, Inc.                         |  | Industrial Cleaning & Coatings  |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Tranche A Loan                                       |  |                                 |  |                  | 11.75%/2.50 | % |          | 4/25/2022 |                 |   | 10,304 |      |  |   | 10,270        |   |  |                      | 10,304 |  |  |  |   |  
|Tranche B Loan                                       |  |                                 |  |                  | 11.75%/7.25 | % |          | 4/25/2022 |                 |   | 2,181  |      |  |   | 2,174         |   |  |                      | 2,181  |  |  |  |   |  
|Common Equity (1,673 shares)                         |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 1,268         |   |  |                      | 457    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 13,712        |   |  |                      | 12,942 |  |  |  | 3 | %
|The Kyjen Company, LLC(dba Outward Hound)            |  | Consumer Products               |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                 |  |                                 |  |                  | 12.00%/0.00 | % |          | 6/8/2024  |                 |   | 14,500 |      |  |   | 14,428        |   |  |                      | 14,428 |  |  |  |   |  
|Common Equity (750 shares) (j)                       |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 750           |   |  |                      | 750    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 15,178        |   |  |                      | 15,178 |  |  |  | 4 | %
|LNG Indy, LLC(dba Kinetrex Energy)                   |  | Oil & Gas Distribution          |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                 |  |                                 |  |                  | 11.50%/0.00 | % |          | 9/28/2021 |                 |   | 5,000  |      |  |   | 4,980         |   |  |                      | 5,000  |  |  |  |   |  
|Common Equity (1,000 units)                          |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 1,000         |   |  |                      | 1,137  |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 5,980         |   |  |                      | 6,137  |  |  |  | 2 | %
|Marco Group International OpCo, LLC                  |  | Industrial Cleaning & Coatings  |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Second Lien Debt                                     |  |                                 |  |                  | 10.50%/0.75 | % |          | 1/21/2023 |                 |   | 12,041 |      |  |   | 11,986        |   |  |                      | 11,986 |  |  |  |   |  
|Common Equity (750,000 shares) (h)(j)                |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 750           |   |  |                      | 750    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 12,736        |   |  |                      | 12,736 |  |  |  | 3 | %
|Mesa Line Services, LLC                              |  | Utilities: Services             |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|Second Lien Debt (j)                                 |  |                                 |  |                  | 10.50%/1.00 | % |          | 5/31/2023 |                 |   | 9,108  |      |  |   | 9,048         |   |  |                      | 9,048  |  |  |  |   |  
|Delayed Draw Commitment ($4,000 commitment)(i)(j)    |  |                                 |  |                  | 10.50%/1.00 | % |          | 5/31/2019 |                 |   |       |      |  |   | (13           | ) |  |                      |       |  |  |  |   |  
|Common Equity (500 shares)(j)                        |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 500           |   |  |                      | 500    |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   |               |   |  |                      |        |  |  |  |   |  
|                                                     |  |                                 |  |                  |             |   |          |           |                 |   |        |      |  |   | 9,535         |   |  |                      | 9,548  |  |  |  | 2 | %



13



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2017

(in
thousands, except shares)



|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|------------------------------------------------------------ |  | ------------------------------- |  | ---------------- | ----------- | - | -------- | ---------- | --------------- | - | ------ | ---- |  | - | ------------- |  |  | -------------------- | ------ |  |  |  | - | -
|Portfolio Company (a)(b)
Investment Type (c)                 |  | Industry                        |  | Rate (d)Cash/PIK |             |   | Maturity |            | PrincipalAmount |   |        | Cost |  |   | FairValue (e) |  |  | Percent ofNet Assets |       
|Midwest Transit Equipment, Inc.                              |  | Transportation services         |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt (j)                                        |  |                                 |  |                  | 13.00%/0.00 | % |          | 6/23/2022  |                 | $ | 12,005 |      |  | $ | 11,286        |  |  | $                    | 12,005 |  |  |  |   |  
|Warrant (14,384 shares) (j)(m)                               |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 361           |  |  |                      | 80     |  |  |  |   |  
|Warrant (9.59% of Junior Subordinated Notes)
(j)(q)          |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 381           |  |  |                      | 405    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 12,028        |  |  |                      | 12,490 |  |  |  | 3 | %
|New Era Technology, Inc.                                     |  | Information Technology Services |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (j)                                         |  |                                 |  |                  | 11.00%/1.50 | % |          | 9/3/2022   |                 |   | 11,646 |      |  |   | 11,598        |  |  |                      | 11,646 |  |  |  |   |  
|Common Equity (197,369 shares) (j)                           |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 750           |  |  |                      | 828    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 12,348        |  |  |                      | 12,474 |  |  |  | 3 | %
|NGT Acquisition Holdings, LLC(dba Techniks Industries)       |  | Component Manufacturing         |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt                                            |  |                                 |  |                  | 12.50%/0.00 | % |          | 3/21/2022  |                 |   | 11,000 |      |  |   | 10,952        |  |  |                      | 11,000 |  |  |  |   |  
|Common Equity (378 units) (j)                                |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 470    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 11,452        |  |  |                      | 11,470 |  |  |  | 3 | %
|Oaktree Medical Centre, P.C.(dba Pain Management Associates) |  | Healthcare Services             |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|First Lien Debt (j)                                          |  |                                 |  |                  | 11.50%/0.00 | % |          | 1/1/2018   |                 |   | 571    |      |  |   | 648           |  |  |                      | 631    |  |  |  |   |  
|First Lien Debt (j)                                          |  |                                 |  |                  | 7.00%/12.00 | % |          | 1/1/2018   |                 |   | 6,849  |      |  |   | 7,437         |  |  |                      | 6,438  |  |  |  |   |  
|Revolving Loan ($2,500 commitment)
(j)                       |  |                                 |  |                  | 11.50%/0.00 | % |          | 1/1/2018   |                 |   | 2,500  |      |  |   | 2,835         |  |  |                      | 2,743  |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 10,920        |  |  |                      | 9,812  |  |  |  | 2 | %
|OMC Investors, LLC(dba Ohio Medical Corporation)             |  | Healthcare Products             |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                             |  |                                 |  |                  | 12.00%/0.00 | % |          | 7/15/2021  |                 |   | 10,000 |      |  |   | 9,936         |  |  |                      | 8,438  |  |  |  |   |  
|Common Equity (5,000 shares)                                 |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 214    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 10,436        |  |  |                      | 8,652  |  |  |  | 2 | %
|Palmetto Moon, LLC                                           |  | Retail                          |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|First Lien Debt                                              |  |                                 |  |                  | 11.50%/1.00 | % |          | 10/31/2021 |                 |   | 6,187  |      |  |   | 6,158         |  |  |                      | 6,187  |  |  |  |   |  
|Common Equity (499 units) (j)                                |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 499           |  |  |                      | 286    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 6,657         |  |  |                      | 6,473  |  |  |  | 2 | %
|Plymouth Rock Energy, LLC                                    |  | Business Services               |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                         |  |                                 |  |                  | 11.00%/0.00 | % |          | 6/30/2019  |                 |   | 5,545  |      |  |   | 5,545         |  |  |                      | 5,545  |  |  |  | 1 | %
|                                                             |  |                                 |  |                  |             |   |         
|Pugh Lubricants, LLC                                         |  | Specialty Distribution          |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                         |  |                                 |  |                  | 12.25%/0.00 | % |          | 5/10/2022  |                 |   | 18,581 |      |  |   | 18,505        |  |  |                      | 18,581 |  |  |  |   |  
|Common Equity (6,125 units) (h)(j)                           |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 612           |  |  |                      | 931    |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 19,117        |  |  |                      | 19,512 |  |  |  | 5 | %
|Restaurant Finance Co, LLC                                   |  | Restaurants                     |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)(p)                                      |  |                                 |  |                  | 15.00%/4.00 | % |          | 7/31/2020  |                 |   | 9,342  |      |  |   | 9,314         |  |  |                      | 2,046  |  |  |  | 1 | %
|                                                             |  |                                 |  |                  |             |   |         
|Revenue Management Solutions, LLC                            |  | Information Technology Services |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt (k)                                        |  |                                 |  |                  | 11.50%/1.00 | % |          | 7/4/2022   |                 |   | 8,838  |      |  |   | 8,766         |  |  |                      | 8,838  |  |  |  |   |  
|Subordinated Debt (j)                                        |  |                                 |  |                  | 7.00%/6.50  | % |          | 7/4/2022   |                 |   | 817    |      |  |   | 806           |  |  |                      | 817    |  |  |  |   |  
|Common Equity (2,250,000 units)                              |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 2,250         |  |  |                      | 2,571  |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 11,822        |  |  |                      | 12,226 |  |  |  | 3 | %
|Rohrer Corporation                                           |  | Packaging                       |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Common Equity (389 shares)                                   |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 750           |  |  |                      | 878    |  |  |  | 0 | %
|                                                             |  |                                 |  |                  |             |   |         
|SES Investors, LLC(dba SES Foam)                             |  | Building Products Manufacturing |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                             |  |                                 |  |                  | 13.00%/0.00 | % |          | 12/29/2020 |                 |   | 4,095  |      |  |   | 4,056         |  |  |                      | 3,229  |  |  |  |   |  
|Common Equity (6,000 units) (h)(j)                           |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 600           |  |  |                      |       |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                             |  |                                 |  |                  |             |   |          |            |                 |   |        |      |  |   | 4,656         |  |  |                      | 3,229  |  |  |  | 1 | %



14



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2017

(in
thousands, except shares)



|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|----------------------------------------------------------- |  | --------------------------------- |  | ---------------- | ----------- | - | -------- | ---------- | --------------- | - | ------ | ---- |  | - | ------------- |  |  | -------------------- | ------ |  |  |  | - | -
|Portfolio Company (a)(b)
Investment Type
(c)                |  | Industry                          |  | Rate (d)Cash/PIK |             |   | Maturity |            | PrincipalAmount |   |        | Cost |  |   | FairValue (e) |  |  | Percent ofNet Assets |       
|Simplex Manufacturing Co.                                   |  | Aerospace & Defense Manufacturing |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt                                           |  |                                   |  |                  | 14.00%/0.00 | % |          | 11/1/2018  |                 | $ | 4,050  |      |  | $ | 4,050         |  |  | $                    | 4,050  |  |  |  |   |  
|Warrant (29 shares) (m)                                     |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,155         |  |  |                      | 3,240  |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 5,205         |  |  |                      | 7,290  |  |  |  | 2 | %
|SimplyWell, Inc.                                            |  | Healthcare Services               |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                            |  |                                   |  |                  | 12.00%/1.25 | % |          | 2/23/2021  |                 |   | 10,046 |      |  |   | 10,001        |  |  |                      | 10,001 |  |  |  |   |  
|Preferred Equity (309,142 shares)                           |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 500           |  |  |                      | 500    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 10,501        |  |  |                      | 10,501 |  |  |  | 3 | %
|Six Month Smiles Holdings, Inc.                             |  | Healthcare Products               |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (j)(p)                                     |  |                                   |  |                  | 0.00%/14.50 | % |          | 7/31/2020  |                 |   | 9,395  |      |  |   | 9,377         |  |  |                      | 5,041  |  |  |  | 1 | %
|                                                            |  |                                   |  |                  |             |   |         
|Software Technology, LLC                                    |  | Information Technology Services   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Subordinated Debt (k)                                       |  |                                   |  |                  | 11.00%/0.00 | % |          | 6/23/2023  |                 |   | 8,750  |      |  |   | 8,712         |  |  |                      | 8,749  |  |  |  |   |  
|Common Equity (11 units)                                    |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,125         |  |  |                      | 1,183  |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 9,837         |  |  |                      | 9,932  |  |  |  | 3 | %
|The Wolf Organization, LLC                                  |  | Building Products Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Common Equity (175 shares)                                  |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,445         |  |  |                      | 4,223  |  |  |  | 1 | %
|                                                            |  |                                   |  |                  |             |   |         
|Thermoforming Technology Group LLC(dba Brown Machine Group) |  | Capital Equipment Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                        |  |                                   |  |                  | 12.50%/0.00 | % |          | 9/14/2021  |                 |   | 19,700 |      |  |   | 19,626        |  |  |                      | 19,700 |  |  |  |   |  
|Common Equity (3,500 units) (h)(j)                          |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 169           |  |  |                      | 360    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 19,795        |  |  |                      | 20,060 |  |  |  | 5 | %
|Tile Redi, LLC                                              |  | Building Products Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|First Lien Debt(j)(r)                                       |  |                                   |  |                  | 11.34%/0.00 | % |          | 6/16/2022  |                 |   | 10,194 |      |  |   | 10,102        |  |  |                      | 10,102 |  |  |  | 3 | %
|                                                            |  |                                   |  |                  |             |   |         
|Toledo Molding & Die, Inc.                                  |  | Component Manufacturing           |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (j)                                        |  |                                   |  |                  | 10.50%/0.00 | % |          | 12/18/2018 |                 |   | 10,000 |      |  |   | 9,964         |  |  |                      | 10,000 |  |  |  | 3 | %
|                                                            |  |                                   |  |                  |             |   |         
|TransGo, LLC                                                |  | Component Manufacturing           |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                            |  |                                   |  |                  | 13.25%/0.00 | % |          | 8/28/2022  |                 |   | 9,500  |      |  |   | 9,460         |  |  |                      | 9,500  |  |  |  |   |  
|Common Equity (1,000 units)                                 |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,000         |  |  |                      | 847    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 10,460        |  |  |                      | 10,347 |  |  |  | 3 | %
|United Biologics, LLC                                       |  | Healthcare Services               |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                            |  |                                   |  |                  | 12.00%/2.00 | % |          | 4/30/2018  |                 |   | 8,876  |      |  |   | 8,866         |  |  |                      | 8,876  |  |  |  |   |  
|Preferred Equity (98,377 units)
(h)(j)                      |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 1,069         |  |  |                      | 879    |  |  |  |   |  
|Warrant (57,469 units) (m)                                  |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 566           |  |  |                      | 234    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 10,501        |  |  |                      | 9,989  |  |  |  | 3 | %
|US GreenFiber, LLC                                          |  | Building Products Manufacturing   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                        |  |                                   |  |                  | 12.00%/2.00 | % |          | 3/1/2019   |                 |   | 14,147 |      |  |   | 14,131        |  |  |                      | 13,014 |  |  |  |   |  
|Common Equity (2,522 units) (h)(j)                          |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 586           |  |  |                      |       |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 14,717        |  |  |                      | 13,014 |  |  |  | 3 | %
|US Pack Logistics LLC                                       |  | Transportation services           |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                        |  |                                   |  |                  | 12.00%/1.75 | % |          | 3/28/2023  |                 |   | 7,282  |      |  |   | 7,257         |  |  |                      | 7,282  |  |  |  |   |  
|Common Equity (5,833 units) (h)(j)                          |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 583           |  |  |                      | 1,078  |  |  |  |   |  
|Preferred Equity (9,458 units) (h)(j)                       |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 945           |  |  |                      | 966    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 8,785         |  |  |                      | 9,326  |  |  |  | 2 | %
|Vanguard Dealer Services, L.L.C.                            |  | Business Services                 |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt                                            |  |                                   |  |                  | 12.25%/0.00 | % |          | 1/30/2021  |                 |   | 11,450 |      |  |   | 11,416        |  |  |                      | 11,450 |  |  |  |   |  
|Common Equity (6,000 shares)                                |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 600           |  |  |                      | 946    |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 12,016        |  |  |                      | 12,396 |  |  |  | 3 | %
|Virginia Tile Company, LLC                                  |  | Specialty Distribution            |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|Second Lien Debt (k)                                        |  |                                   |  |                  | 12.25%/0.00 | % |          | 4/7/2022   |                 |   | 12,000 |      |  |   | 11,971        |  |  |                      | 12,000 |  |  |  |   |  
|Common Equity (17 units)                                    |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 342           |  |  |                      | 1,493  |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   |               |  |  |                      |        |  |  |  |   |  
|                                                            |  |                                   |  |                  |             |   |          |            |                 |   |        |      |  |   | 12,313        |  |  |                      | 13,493 |  |  |  | 4 | %



15



---

##### Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (continued)

December 31, 2017

(in
thousands, except shares)



|                                             |  |          |                         |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               |   |         |                      |  |   |         |  |  |  |     |  
|-------------------------------------------- |  | -------- | ----------------------- |  | ---------------- |  | ----------- | -------- |  |  | --------------- |  |  | ---- | ------ |  | ------------- | - | ------- | -------------------- |  | - | ------- |  |  |  | --- | -
|Portfolio Company (a)(b)
Investment Type
(c) |  | Industry |                         |  | Rate (d)Cash/PIK |  |             | Maturity |  |  | PrincipalAmount |  |  | Cost |        |  | FairValue (e) |   |         | Percent ofNet Assets | 
|Worldwide Express Operations, LLC            |  |          | Transportation services |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               |   |         |                      |  |   |         |  |  |  |     |  
|Second Lien Debt (j)(o)                      |  |          |                         |  |                  |  | 10.20%/0.00 | %        |  |  | 2/3/2025        |  |  | $    | 10,000 |  |               | $ | 9,867   |                      |  | $ | 10,000  |  |  |  |     |  
|Common Equity (4,000 units) (h)(j)           |  |          |                         |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               |   | 4,000   |                      |  |   | 4,233   |  |  |  |     |  
|                                             |  |          |                         |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               |   |         |                      |  |   |         |  |  |  |     |  
|                                             |  |          |                         |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               |   | 13,867  |                      |  |   | 14,233  |  |  |  | 4   | %
|                                             |  |          |                         |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               |   |         |                      |  |   |         |  |  |  |     |  
|Total Non-control/Non-affiliate 
Investments |  |          |                         |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               | $ | 480,139 |                      |  | $ | 468,574 |  |  |  | 121 | %
|                                             |  |          |                         |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               |   |         |                      |  |   |         |  |  |  |     |  
|Total Investments                            |  |          |                         |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               | $ | 577,794 |                      |  | $ | 596,308 |  |  |  | 152 | %
|                                             |  |          |                         |  |                  |  |             |          |  |  |                 |  |  |      |        |  |               |   |         |                      |  |   |         |  |  |  |     |  



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

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

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

|(d) | Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of December 31, 2017.
Generally, payment-in-kind interest can be paid-in-kind or all in cash.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The Companys investment portfolio is comprised entirely of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are
not available. Therefore, the Company values all of its portfolio investments at fair value, as determined in good faith by the board of directors, using significant unobservable Level 3 inputs.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | The investment bears cash interest at a variable rate that is determined by reference to one-month LIBOR, which is reset monthly. The cash interest rate is set as one-month LIBOR + 11.50% and is subject to a 12.50% interest rate floor. The Company has provided the interest rate in effect as of December 31, 2017.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|(h) | Investment is held by a wholly-owned subsidiary of the Company, other than the Funds.
|--- | -------------------------------------------------------------------------------------

|(i) | The entire commitment was unfunded at December 31, 2017. The Company is earning 0.50% interest on the unfunded balance of the commitment.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------

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

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

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

|(m) | Warrants entitle the Company to purchase a predetermined number of shares or units of common equity, and are non-income producing. The purchase price and number of shares are
subject to adjustment under certain conditions until the expiration date, if any.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|(o) | The investment bears interest at a variable rate that is determined by reference to six-month LIBOR, which is reset semi-annually. The interest rate is set as six-month LIBOR + 8.75% and is subject to a 1.00% LIBOR interest rate floor. The Company has provided the interest rate in effect as of December 31, 2017.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(p) | Investment was on non-accrual status as of December 31, 2017, meaning the Company has ceased recognizing interest income on the investment.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------

|(q) | Warrant entitles the Company to purchase 9.59% of the outstanding principal of Junior Subordinated Notes prior to exercise, and is non-income producing.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------

|(r) | The investment bears interest at a variable rate that is determined by reference to three-month LIBOR, which is reset quarterly. The interest rate is set as three-month LIBOR + 10.00% and is subject to a 1.00% LIBOR
interest rate floor. The Company has provided the interest rate in effect as of December 31, 2017.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(s) | A portion of the investment is held by a wholly-owned subsidiary of the Company, other than the Funds.
|--- | ------------------------------------------------------------------------------------------------------

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

See Notes to Consolidated Financial Statements (unaudited).



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)

Note 1. Organization and Nature of Business

Fidus Investment Corporation (FIC, and together with its subsidiaries, the Company), a Maryland Corporation, operates
as an externally managed, closed-end, non-diversified business development company (BDC) under the Investment Company Act of 1940 (1940 Act). FIC
completed its initial public offering, or IPO, in June 2011. In addition, for federal income tax purposes, the Company elected to be treated as a regulated investment company (RIC) under Subchapter M of the Internal Revenue Code of 1986,
as amended (the Code).

The Company provides customized debt and equity financing solutions to lower middle-market companies,
and may make investments directly or through its two wholly-owned investment company subsidiaries, Fidus Mezzanine Capital, L.P. (Fund I) and Fidus Mezzanine Capital II, L.P. (Fund II) (collectively Fund I and Fund II are
referred to as the Funds). The Funds are licensed by the U.S. Small Business Administration (the SBA) as small business investment companies (SBIC). The SBIC licenses allow the Funds to obtain leverage by issuing SBA-guaranteed debentures (SBA debentures), subject to the issuance of leverage commitments by the SBA and other customary procedures. As SBICs, the Funds are subject to a variety of regulations and
oversight by the SBA under the Small Business Investment Act of 1958, as amended (the SBIC Act), concerning, among other things, the size and nature of the companies in which they may invest and the structure of those investments.

We believe that utilizing both FIC and the Funds as investment vehicles provides us with access to a broader array of investment
opportunities. Given our access to lower cost capital through the SBAs SBIC debenture program, we expect that the majority of our investments will continue to be made through the Funds until the Funds reach their borrowing limit under the
program. For three or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350,000.

Fund I
has also elected to be regulated as a BDC under the 1940 Act. Fund II is not registered under the 1940 Act and relies on the exclusion from the definition of investment company contained in Section 3(c)(7) of the 1940 Act.

The Company pays a quarterly base management fee and an incentive fee to Fidus Investment Advisors, LLC (the Investment Advisor)
under an investment advisory agreement (the Investment Advisory Agreement).

Note 2. Significant Accounting Policies

Basis of presentation: The accompanying consolidated financial statements of the Company have been prepared in accordance with generally
accepted accounting principles in the United States of America (GAAP) pursuant to the requirements for reporting on Form 10-Q, Accounting Standards Codification (ASC) 946, Financial
Services  Investment Companies(ASC 946), and Articles 6 or 10 of Regulation S-X. In the opinion of management, the consolidated financial statements reflect all adjustments and
reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation. The current periods
results of operation are not necessarily indicative of results that ultimately may be achieved for the year. Therefore, the unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes
thereto for the year ended December 31, 2017.

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

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

Investment risks: The Companys investments are subject to a variety of risks. These risks may include, but are not limited to the
following:



| |  |  | Market risk -In contrast to investment-grade bonds (the market prices of which change primarily as a
reaction to changes in interest rates), the market prices of high-yield bonds (which are also affected by changes in interest rates) are influenced much more by credit factors and financial results of the issuer as well as general economic factors
that influence the financial markets as a whole. The portfolio companies in which the Company invests may be unseasoned, unprofitable and/or have little established operating history or earnings. These companies may also lack technical, marketing,
financial, and other resources or may be dependent upon the success of one product or service, a unique distribution channel, or the effectiveness of a manager or management team, as compared to larger, more
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



| | established entities. The failure of a single product, service or distribution channel, or the loss or the ineffectiveness of a key executive or executives within the management team may have a
materially adverse impact on such companies. Furthermore, these companies may be more vulnerable to competition and to overall economic conditions than larger, more established entities.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Credit risk -Credit risk represents the risk that the Company would incur if the counterparties failed to perform pursuant to the terms of their agreements with the Company. Issues of high-yield debt securities
in which the Company invests are more likely to default on interest or principal than are issues of investment-grade securities.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Liquidity risk -Liquidity risk represents the possibility that the Company may not be able to sell its investments quickly or at a reasonable price (given the lack of an established market).
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Interest rate risk -Interest rate risk represents the likelihood that a change in interest rates could have an adverse impact on the fair value of an interest-bearing financial instrument.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Prepayment risk -Certain of the Companys debt investments allow for prepayment of principal without penalty. Downward changes in market interest rates may cause prepayments to occur at a faster than
expected rate, thereby effectively shortening the maturity of the debt investments and making the instrument less likely to be an income producing instrument through the stated maturity date.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Off-Balance sheet risk -Some of the Companys financial instruments contain off-balance sheet risk. Generally, these financial
instruments represent future commitments to purchase other financial instruments at defined terms at defined future dates. See Note 7 for further details.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



Interest and dividend income: Interest and dividend income is recorded on the accrual
basis to the extent that the Company expects to collect such amounts. Interest is accrued daily based on the outstanding principal amount and the contractual terms of the debt. Dividend income is recorded as dividends are declared or at the point an
obligation exists for the portfolio company to make a distribution, and is generally recognized when received. Distributions from portfolio companies are evaluated to determine if the distribution is a distribution of earnings or a return of
capital. Distributions of earnings are included in dividend income while a return of capital is recorded as a reduction in the cost basis of the investment. Estimates are adjusted as necessary after the relevant tax forms are received from the
portfolio company.

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

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

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

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

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

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

Income taxes: The Company has elected to be treated as a RIC under Subchapter M of the Code, which will generally relieve the Company
from U.S. federal income taxes with respect to all income distributed to stockholders. To maintain the tax treatment of a RIC, the Company is required to timely distribute to its stockholders at least 90.0% of investment company taxable
income, as defined by Subchapter M of the Code, each year. Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year distributions into the next tax year;
however, the Company will pay a 4.0% excise tax if it does not distribute at least 98.0% of the current years ordinary taxable income. Any such carryover taxable income must be distributed through a dividend declared prior to the later of the
date on which the final tax return related to the year in which the Company generated such taxable income is filed or the 15th day of the 10th
month following the close of such taxable year. In addition, the Company will be subject to federal excise tax if it does not distribute at least 98.2% of its net capital gains realized, computed for any one year period ending October 31.

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



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



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

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

ASC Topic 740  Accounting for Uncertainty in Income Taxes (ASC Topic 740) provides guidance for how uncertain tax
positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Companys tax returns to determine whether
the tax positions are more-likely-than-not to be respected by the applicable tax authorities. Tax benefits of positions not deemed to meet the
more-likely-than-not threshold would be recorded as a tax expense in the current year. It is the Companys policy to recognize accrued interest and penalties related to uncertain tax benefits included in
the income tax provision, if any. There were no material uncertain income tax positions at March 31, 2018 and December 31, 2017. The Companys tax returns are generally subject to examination by U.S. federal and most state tax
authorities for a period of three years from the date the respective returns are filed, and, accordingly, the Companys 2014 through 2016 tax years remain subject to examination.

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

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

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

Earnings and net asset value per share: The earnings per share
calculations for the three months ended March 31, 2018 and 2017, are computed utilizing the weighted average shares outstanding for the period. Net asset value per share is calculated using the number of shares outstanding as of the end of the
period.

Stock Repurchase Program: The Company has an open market stock repurchase program (the Stock Repurchase
Program) under which the Company may acquire up to $5,000 of its outstanding common stock. Under the Stock Repurchase Program, the Company may, but is not obligated to, repurchase outstanding common stock in the open market from time to time
provided that the Company complies with the prohibitions under its insider trading policies and the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price,
market value and timing constraints. The timing, manner, price and amount of any share repurchases will be determined by the Companys management, in its discretion, based upon the evaluation of economic and market conditions, stock price,
capital availability, applicable legal and regulatory requirements and other corporate



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



considerations. On October 30, 2017, the Board extended the Program through December 31, 2018, or until the approved dollar amount has been used to repurchase shares. The Stock
Repurchase Program does not require the Company to repurchase any specific number of shares and the Company cannot assure that any shares will be repurchased under the Stock Repurchase Program. The Stock Repurchase Program may be suspended,
extended, modified or discontinued at any time. During the three months ended March 31, 2018, the Company repurchased 44,821 shares of common stock on the open market for $582. The Company did not make any repurchases of common stock during the
three months ended March 31, 2017. Refer to Note 8 for additional information concerning stock repurchases.

Recent accounting
pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09,Revenue from Contracts with
Customers (Topic 606), which supersedes the revenue recognition requirements inRevenue Recognition (Topic 605). Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017.
The Company adopted the ASU effective January 1, 2018. The majority of the Companys income streams are specifically excluded from the scope of the ASU as they relate to financial instruments that are within the scope of other topics, and
in general the impact of adopting the ASU is not material to the Companys consolidated financial position or disclosures.

Note 3. Portfolio
Company Investments

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

As of
March 31, 2018, the Company had active investments in 63 portfolio companies and residual investments in three portfolio companies that have sold their underlying operations. The aggregate fair value of the total portfolio was $632,195 and the
weighted average effective yield on the Companys debt investments was 12.7% as of such date. As of March 31, 2018, the Company held equity investments in 89.4% of its portfolio companies and the average fully diluted equity ownership in
those portfolio companies was 7.1%.

As of December 31, 2017, the Company had active investments in 60 portfolio companies and
residual investments in three portfolio companies that have sold their underlying operations. The aggregate fair value of the total portfolio was $596,308 and the weighted average effective yield on the Companys debt investments was 13.0% as
of such date. As of December 31, 2017, the Company held equity investments in 87.3% of its portfolio companies and the average fully diluted equity ownership in those portfolio companies was 7.7%.

The weighted average yield of the Companys debt investments is not the same as a return on investment for its stockholders but, rather,
relates to a portion of the Companys investment portfolio and is calculated before the payment of all of the Companys and its subsidiaries fees and expenses.The weighted average yields were computed using the effective
interest rates for debt investments at cost as of March 31, 2018 and December 31, 2017, including accretion of OID and loan origination fees, but excluding investments on non-accrual status, if any.

Purchases of debt and equity investments for the three months ended March 31, 2018 and 2017, totaled $60,913 and $55,004,
respectively. Proceeds from sales and repayments, including principal, return of capital distributions and realized gains, of portfolio investments for the three months ended March 31, 2018 and 2017 totaled $36,093 and $47,746,
respectively.



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



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



|                  |  |               |         |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|----------------- |  | ------------- | ------- |  | ---------------- |  | ----- | ------------- |  | - | ---------------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | -
|                  |  | Fair Value    |         |  | Cost             | 
|                  |  | March 31,2018 |         |  | December 31,2017 |  |       | March 31,2018 |  |   | December 31,2017 | 
|Second Lien Debt  |  | $             | 377,405 |  |                  |  | 59.6  | %             |  | $ | 341,279          |  |  |  | 57.3  | % |  | $ | 399,465 |  |  |  | 65.2  | % |  | $ | 357,585 |  |  |  | 62.0  | %
|Subordinated Debt |  |               | 114,857 |  |                  |  | 18.2  |               |  |   | 126,481          |  |  |  | 21.2  |   |  |   | 115,402 |  |  |  | 18.9  |   |  |   | 126,465 |  |  |  | 21.9  |  
|First Lien Debt   |  |               | 29,622  |  |                  |  | 4.7   |               |  |   | 28,911           |  |  |  | 4.8   |   |  |   | 31,560  |  |  |  | 5.2   |   |  |   | 31,921  |  |  |  | 5.5   |  
|Equity            |  |               | 95,960  |  |                  |  | 15.2  |               |  |   | 84,585           |  |  |  | 14.2  |   |  |   | 57,228  |  |  |  | 9.4   |   |  |   | 53,915  |  |  |  | 9.3   |  
|Warrants          |  |               | 14,351  |  |                  |  | 2.3   |               |  |   | 15,052           |  |  |  | 2.5   |   |  |   | 7,724   |  |  |  | 1.3   |   |  |   | 7,723   |  |  |  | 1.3   |  
|Royalty rights    |  |               |        |  |                  |  |      |               |  |   |                 |  |  |  |      |   |  |   | 185     |  |  |  |      |   |  |   | 185     |  |  |  |      |  
|                  |  |               |         |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|Total             |  | $             | 632,195 |  |                  |  | 100.0 | %             |  | $ | 596,308          |  |  |  | 100.0 | % |  | $ | 611,564 |  |  |  | 100.0 | % |  | $ | 577,794 |  |  |  | 100.0 | %
|                  |  |               |         |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  

All investments made by the Company as of March 31, 2018 and December 31, 2017 were made in
portfolio companies headquartered in the U.S. The following table shows portfolio composition by geographic region at fair value and cost and as a percentage of total investments. The geographic composition is determined by the location of the
corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio companys business.



|          |  |               |         |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|--------- |  | ------------- | ------- |  | ---------------- |  | ----- | ------------- |  | - | ---------------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | - |  | - | ------- |  |  |  | ----- | -
|          |  | Fair Value    |         |  | Cost             | 
|          |  | March 31,2018 |         |  | December 31,2017 |  |       | March 31,2018 |  |   | December 31,2017 | 
|Midwest   |  | $             | 173,917 |  |                  |  | 27.5  | %             |  | $ | 167,967          |  |  |  | 28.2  | % |  | $ | 166,983 |  |  |  | 27.3  | % |  | $ | 161,809 |  |  |  | 28.1  | %
|Southeast |  |               | 158,996 |  |                  |  | 25.1  |               |  |   | 130,237          |  |  |  | 21.8  |   |  |   | 148,804 |  |  |  | 24.3  |   |  |   | 130,694 |  |  |  | 22.6  |  
|Northeast |  |               | 99,590  |  |                  |  | 15.8  |               |  |   | 107,814          |  |  |  | 18.1  |   |  |   | 104,896 |  |  |  | 17.2  |   |  |   | 105,267 |  |  |  | 18.2  |  
|West      |  |               | 62,405  |  |                  |  | 9.9   |               |  |   | 63,396           |  |  |  | 10.6  |   |  |   | 53,980  |  |  |  | 8.8   |   |  |   | 53,970  |  |  |  | 9.3   |  
|Southwest |  |               | 137,287 |  |                  |  | 21.7  |               |  |   | 126,894          |  |  |  | 21.3  |   |  |   | 136,901 |  |  |  | 22.4  |   |  |   | 126,054 |  |  |  | 21.8  |  
|          |  |               |         |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  
|Total     |  | $             | 632,195 |  |                  |  | 100.0 | %             |  | $ | 596,308          |  |  |  | 100.0 | % |  | $ | 611,564 |  |  |  | 100.0 | % |  | $ | 577,794 |  |  |  | 100.0 | %
|          |  |               |         |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |         |  |  |  |       |   |  |   |         |  |  |  |       |  

The following table shows portfolio composition by type and by geographic region at fair value as a percentage
of net assets.



|                  |  |               |                      |   |                  |  |       |   |  |               |  |  |                  |   |  |  |       |  
|----------------- |  | ------------- | -------------------- | - | ---------------- |  | ----- | - |  | ------------- |  |  | ---------------- | - |  |  | ----- | -
|By Type           |  |               | By Geographic Region |  
|                  |  | March 31,2018 |                      |   | December 31,2017 |  |       |   |  | March 31,2018 |  |  | December 31,2017 |  
|Second Lien Debt  |  |               | 94.9                 | % |                  |  | 86.9  | % |  | Midwest       |  |  | 43.8             | % |  |  | 42.8  | %
|Subordinated Debt |  |               | 28.9                 |   |                  |  | 32.3  |   |  | Southeast     |  |  | 40.0             |   |  |  | 33.2  |  
|First Lien Debt   |  |               | 7.5                  |   |                  |  | 7.5   |   |  | Northeast     |  |  | 25.0             |   |  |  | 27.5  |  
|Equity            |  |               | 24.1                 |   |                  |  | 21.5  |   |  | West          |  |  | 15.7             |   |  |  | 16.2  |  
|Warrants          |  |               | 3.6                  |   |                  |  | 3.8   |   |  | Southwest     |  |  | 34.5             |   |  |  | 32.3  |  
|Royalty rights    |  |               |                     |   |                  |  |      |   |  |               |  |  |                  |   |  |  |       |  
|                  |  |               |                      |   |                  |  |       |   |  |               |  |  |                  |   |  |  |       |  
|Total             |  |               | 159.0                | % |                  |  | 152.0 | % |  | Total         |  |  | 159.0            | % |  |  | 152.0 | %
|                  |  |               |                      |   |                  |  |       |   |  |               |  |  |                  |   |  |  |       |  

As of March 31, 2018 and December 31, 2017, the Company had no portfolio company investments that
represented more than 10% of the total investment portfolio on a fair value or cost basis.

As of March 31, 2018 and
December 31, 2017, the Company had debt investments in two portfolio companies on non-accrual status:



|                                |  |                |       |  |                   |   |        |           |  |   |       |  |  |   |        | 
|------------------------------- |  | -------------- | ----- |  | ----------------- | - | ------ | --------- |  | - | ----- |  |  | - | ------ | 
|                                |  | March 31, 2018 |       |  | December 31, 2017 |  
|Portfolio Company               |  | FairValue      |       |  | Cost              |   |        | FairValue |  |   | Cost  | 
|Restaurant Finance Co, LLC      |  | $              | 1,989 |  |                   | $ | 9,314  |           |  | $ | 2,046 |  |  | $ | 9,314  | 
|Six Month Smiles Holdings, Inc. |  |                |      |  |                   |   | 9,377  |           |  |   | 5,041 |  |  |   | 9,377  | 
|                                |  |                |       |  |                   |   |        |           |  |   |       |  |  |   |        | 
|Total                           |  | $              | 1,989 |  |                   | $ | 18,691 |           |  | $ | 7,087 |  |  | $ | 18,691 | 
|                                |  |                |       |  |                   |   |        |           |  |   |       |  |  |   |        | 



22



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



Consolidated Schedule of Investments In and Advances To Affiliates

The table below represents the fair value of control and affiliate investments as of December 31, 2017 and any additions and reductions
made to such investments during the three months ended March 31, 2018, the ending fair value as of March 31, 2018, and the total investment income earned on such investments during the period.



|                                                    |  |                                                |        |  |                            |   |         |                    |  |   |                     |  |  |                         |        |   |                                   |   |         |                                                   |  |   |                |  |  |                                |        |   |                |   |       |            |  |   |     |  |  |   |     |  |  |   |    |  
|--------------------------------------------------- |  | ---------------------------------------------- | ------ |  | -------------------------- | - | ------- | ------------------ |  | - | ------------------- |  |  | ----------------------- | ------ | - | --------------------------------- | - | ------- | ------------------------------------------------- |  | - | -------------- |  |  | ------------------------------ | ------ | - | -------------- | - | ----- | ---------- |  | - | --- |  |  | - | --- |  |  | - | -- | -
|                                                    |  |                                                |        |  |                            |   |         |                    |  |   |                     |  |  |                         |        |   | Three Months Ended March 31, 2018 |  
|Portfolio Company (1)(2)                            |  | March 31,2018PrincipalAmount - DebtInvestments |        |  | December 31,2017Fair Value |   |         | GrossAdditions (3) |  |   | GrossReductions (4) |  |  | March 31,2018Fair Value |        |   | Net RealizedGains(Losses) (5)     |   |         | Net Change inUnrealizedAppreciation(Depreciation) |  |   | InterestIncome |  |  | Payment-in-kind InterestIncome |        |   | DividendIncome |   |       | Fee Income | 
|Control Investments                                 |  |                                                |        |  |                            |   |         |                    |  |   |                     |  |  |                         |        |   |                                   |   |         |                                                   |  |   |                |  |  |                                |        |   |                |   |       |            |  |   |     |  |  |   |     |  |  |   |    |  
|FDS Avionics Corp.(dba Flight Display Systems)      |  | $                                              | 5,710  |  |                            | $ | 4,723   |                    |  | $ | 227                 |  |  | $                       |       |   |                                   | $ | 4,950   |                                                   |  | $ |               |  |  | $                              | 73     |   |                | $ | 57    |            |  | $ | 153 |  |  | $ |    |  |  | $ |   |  
|                                                    |  |                                                |        |  |                            |   |         |                    |  |   |                     |  |  |                         |        |   |                                   |   |         |                                                   |  |   |                |  |  |                                |        |   |                |   |       |            |  |   |     |  |  |   |     |  |  |   |    |  
|Total Control Investments                           |  | $                                              | 5,710  |  |                            | $ | 4,723   |                    |  | $ | 227                 |  |  | $                       |       |   |                                   | $ | 4,950   |                                                   |  | $ |               |  |  | $                              | 73     |   |                | $ | 57    |            |  | $ | 153 |  |  | $ |    |  |  | $ |   |  
|                                                    |  |                                                |        |  |                            |   |         |                    |  |   |                     |  |  |                         |        |   |                                   |   |         |                                                   |  |   |                |  |  |                                |        |   |                |   |       |            |  |   |     |  |  |   |     |  |  |   |    |  
|Affiliate Investments                               |  |                                                |        |  |                            |   |         |                    |  |   |                     |  |  |                         |        |   |                                   |   |         |                                                   |  |   |                |  |  |                                |        |   |                |   |       |            |  |   |     |  |  |   |     |  |  |   |    |  
|Apex Microtechnology, Inc.                          |  | $                                              |       |  |                            | $ | 3,400   |                    |  | $ | 179                 |  |  | $                       |       |   |                                   | $ | 3,579   |                                                   |  | $ |               |  |  | $                              | 177    |   |                | $ |      |            |  | $ |    |  |  | $ | 168 |  |  | $ |   |  
|FAR Research Inc.                                   |  |                                                |       |  |                            |   | 1,447   |                    |  |   | 213                 |  |  |                         |       |   |                                   |   | 1,660   |                                                   |  |   |               |  |  |                                | 213    |   |                |   |      |            |  |   |    |  |  |   |    |  |  |   |   |  
|Fiber Materials, Inc.                               |  |                                                | 4,044  |  |                            |   | 5,882   |                    |  |   | 206                 |  |  |                         |       |   |                                   |   | 6,088   |                                                   |  |   |               |  |  |                                | 205    |   |                |   | 122   |            |  |   |    |  |  |   |    |  |  |   |   |  
|Inflexxion, Inc.                                    |  |                                                | 4,812  |  |                            |   | 2,810   |                    |  |   | 288                 |  |  |                         |       |   |                                   |   | 3,098   |                                                   |  |   |               |  |  |                                | 227    |   |                |   | 61    |            |  |   | 59  |  |  |   |    |  |  |   |   |  
|Medsurant Holdings, LLC                             |  |                                                | 8,823  |  |                            |   | 21,625  |                    |  |   | 3                   |  |  |                         | (770   | ) |                                   |   | 20,858  |                                                   |  |   |               |  |  |                                | (770   | ) |                |   | 292   |            |  |   |    |  |  |   |    |  |  |   |   |  
|Microbiology Research Associates, Inc.              |  |                                                | 8,699  |  |                            |   | 12,455  |                    |  |   | 34                  |  |  |                         | (149   | ) |                                   |   | 12,340  |                                                   |  |   |               |  |  |                                | (149   | ) |                |   | 236   |            |  |   | 32  |  |  |   |    |  |  |   |   |  
|Mirage Trailers LLC                                 |  |                                                | 6,039  |  |                            |   | 8,956   |                    |  |   | 106                 |  |  |                         | (28    | ) |                                   |   | 9,034   |                                                   |  |   |               |  |  |                                | 77     |   |                |   | 202   |            |  |   | 23  |  |  |   | 1   |  |  |   |   |  
|Pfanstiehl, Inc.                                    |  |                                                | 6,208  |  |                            |   | 15,278  |                    |  |   | 1,484               |  |  |                         |       |   |                                   |   | 16,762  |                                                   |  |   |               |  |  |                                | 1,484  |   |                |   | 162   |            |  |   |    |  |  |   | 275 |  |  |   |   |  
|Pinnergy, Ltd.                                      |  |                                                | 8,000  |  |                            |   | 27,921  |                    |  |   | 8,060               |  |  |                         | (1,519 | ) |                                   |   | 34,462  |                                                   |  |   |               |  |  |                                | 7,839  |   |                |   | 2     |            |  |   | 218 |  |  |   |    |  |  |   | (4 | )
|Rhino Assembly Company, LLC                         |  |                                                | 3,523  |  |                            |   | 4,248   |                    |  |   | 290                 |  |  |                         |       |   |                                   |   | 4,538   |                                                   |  |   |               |  |  |                                | 280    |   |                |   | 108   |            |  |   | 9   |  |  |   |    |  |  |   |   |  
|Safety Products Group, LLC                          |  |                                                |       |  |                            |   | 12      |                    |  |   |                    |  |  |                         |       |   |                                   |   | 12      |                                                   |  |   |               |  |  |                                |       |   |                |   |      |            |  |   |    |  |  |   |    |  |  |   |   |  
|Steward Holding LLC(dba Steward Advanced Materials) |  |                                                | 7,441  |  |                            |   | 7,882   |                    |  |   | 123                 |  |  |                         |       |   |                                   |   | 8,005   |                                                   |  |   |               |  |  |                                | 62     |   |                |   | 220   |            |  |   | 59  |  |  |   |    |  |  |   |   |  
|Trantech Radiator Products, Inc.                    |  |                                                | 6,994  |  |                            |   | 6,707   |                    |  |   | 632                 |  |  |                         |       |   |                                   |   | 7,339   |                                                   |  |   |               |  |  |                                | 630    |   |                |   | 250   |            |  |   |    |  |  |   |    |  |  |   |   |  
|World Wide Packaging, LLC                           |  |                                                |       |  |                            |   | 4,388   |                    |  |   |                    |  |  |                         | (4,388 | ) |                                   |   |        |                                                   |  |   | 6,768          |  |  |                                | (3,890 | ) |                |   |      |            |  |   |    |  |  |   |    |  |  |   |   |  
|                                                    |  |                                                |        |  |                            |   |         |                    |  |   |                     |  |  |                         |        |   |                                   |   |         |                                                   |  |   |                |  |  |                                |        |   |                |   |       |            |  |   |     |  |  |   |     |  |  |   |    |  
|Total Affiliate Investments                         |  | $                                              | 64,583 |  |                            | $ | 123,011 |                    |  | $ | 11,618              |  |  | $                       | (6,854 | ) |                                   | $ | 127,775 |                                                   |  | $ | 6,768          |  |  | $                              | 6,385  |   |                | $ | 1,655 |            |  | $ | 400 |  |  | $ | 444 |  |  | $ | (4 | )
|                                                    |  |                                                |        |  |                            |   |         |                    |  |   |                     |  |  |                         |        |   |                                   |   |         |                                                   |  |   |                |  |  |                                |        |   |                |   |       |            |  |   |     |  |  |   |     |  |  |   |    |  



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

|(2) | Transfers between classifications are assumed to have occurred at the beginning of the quarter during which the investment was reclassified.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments, accrued PIK interest and PIK dividend income, and accretion of OID and origination
fees. Gross additions also include net unrealized appreciation recognized during the period.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales. Gross reductions also include net unrealized (depreciation) recognized during the period.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | The schedule does not reflect realized gains or losses on escrow receivables for investments which were previously exited and were not held during the period presented. Gains and losses on escrow receivables are
classified in the consolidated statements of operations according to the control classification at the time the investment was exited.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Note 4. Fair Value Measurements

Investments

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

Level1  Inputs are unadjusted, quoted prices in
active markets for identical assets as of the measurement date.

Level2  Inputs include quoted prices for
similar assets in active markets, or that are quoted prices for identical or similar assets in markets that are not active and inputs that are observable, either directly or indirectly, for substantially the full term, if applicable, of the
investment.

Level3  Inputs include those that are both unobservable and significant to the overall fair
value measurement.

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



23



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



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



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



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



| |  |  | the Board engages one or more independent valuation firm(s) to conduct independent appraisals of a selection of our portfolio investments for which market quotations are not readily available. Each portfolio company
investment is generally appraised by the valuation firm(s) at least once every calendar year and each new portfolio company investment is appraised at least once in the twelve-month period following the initial investment. In certain instances, the
Company may determine that it is not cost-effective, and as a result it is not in the Companys stockholders best interest, to request the independent appraisal of certain portfolio company investments. Such instances include, but are not
limited to, situations where the Company determines that the fair value of the portfolio company investment is relatively insignificant to the fair value of the total portfolio. The Board consulted with the independent valuation firm(s) in arriving
at the Companys determination of fair value for 18 and 18 of its portfolio company investments representing 30.5% and 32.0% of the total portfolio investments at fair value (exclusive of new portfolio company investments made during the three
months ended March 31, 2018 and December 31, 2017, respectively) as of March 31, 2018 and December 31, 2017, respectively.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



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

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

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

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

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



24



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##### Table of Contents

FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



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

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

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

The Company reviews the fair value hierarchy classifications on a quarterly basis. Reclassifications impacting Level 3 of the fair value
hierarchy are reported as transfers in or out of the Level 3 category as of the beginning of the quarter in which the reclassifications occur. There were no transfers among Levels 1, 2, and 3 during the three months ended March 31,
2018 and 2017.

The following tables present a reconciliation of the beginning and ending balances for fair valued investments measured
using significant unobservable inputs (Level 3) for the three months ended March 31, 2018 and 2017:



|                                                                    |  |                 |         |   |                  |   |         |                |  |   |        |   |  |          |        |   |               |   |        |       |  |   |     |  |  |   |         |  
|------------------------------------------------------------------- |  | --------------- | ------- | - | ---------------- | - | ------- | -------------- |  | - | ------ | - |  | -------- | ------ | - | ------------- | - | ------ | ----- |  | - | --- |  |  | - | ------- | -
|                                                                    |  | Second LienDebt |         |   | SubordinatedDebt |   |         | First LienDebt |  |   | Equity |   |  | Warrants |        |   | RoyaltyRights |   |        | Total | 
|Balance, December 31, 2016                                          |  | $               | 272,987 |   |                  | $ | 114,460 |                |  | $ | 55,957 |   |  | $        | 70,849 |   |               | $ | 10,201 |       |  | $ |    |  |  | $ | 524,454 |  
|Net realized gains (losses) on investments                          |  |                 |        |   |                  |   |        |                |  |   |       |   |  |          | 6,464  |   |               |   |       |       |  |   |    |  |  |   | 6,464   |  
|Net change in unrealized appreciation (depreciation) on investments |  |                 | (1,887  | ) |                  |   | (224    | )              |  |   | (343   | ) |  |          | (2,344 | ) |               |   | 1,207  |       |  |   | 185 |  |  |   | (3,406  | )
|Purchase of investments                                             |  |                 | 37,638  |   |                  |   | 12,750  |                |  |   | 500    |   |  |          | 4,001  |   |               |   | 115    |       |  |   |    |  |  |   | 55,004  |  
|Proceeds from sales and repayments of investments                   |  |                 | (18,884 | ) |                  |   | (23,715 | )              |  |   | (184   | ) |  |          | (4,963 | ) |               |   |       |       |  |   |    |  |  |   | (47,746 | )
|Interest and dividend income
paid-in-kind                           |  |                 | 884     |   |                  |   | 510     |                |  |   | 266    |   |  |          | 38     |   |               |   |       |       |  |   |    |  |  |   | 1,698   |  
|Proceeds from loan origination fees                                 |  |                 | (240    | ) |                  |   | (100    | )              |  |   |       |   |  |          |       |   |               |   |       |       |  |   |    |  |  |   | (340    | )
|Accretion of loan origination fees                                  |  |                 | 94      |   |                  |   | 156     |                |  |   | 95     |   |  |          | 1      |   |               |   |       |       |  |   |    |  |  |   | 346     |  
|Accretion of original issue discount                                |  |                 | 26      |   |                  |   | 101     |                |  |   |       |   |  |          | 1      |   |               |   |       |       |  |   |    |  |  |   | 128     |  
|                                                                    |  |                 |         |   |                  |   |         |                |  |   |        |   |  |          |        |   |               |   |        |       |  |   |     |  |  |   |         |  
|Balance, March 31, 2017                                             |  | $               | 290,618 |   |                  | $ | 103,938 |                |  | $ | 56,291 |   |  | $        | 74,047 |   |               | $ | 11,523 |       |  | $ | 185 |  |  | $ | 536,602 |  
|                                                                    |  |                 |         |   |                  |   |         |                |  |   |        |   |  |          |        |   |               |   |        |       |  |   |     |  |  |   |         |  
|Balance, December 31, 2017                                          |  | $               | 341,279 |   |                  | $ | 126,481 |                |  | $ | 28,911 |   |  | $        | 84,585 |   |               | $ | 15,052 |       |  | $ |    |  |  | $ | 596,308 |  
|Net realized gains (losses) on investments                          |  |                 |        |   |                  |   |        |                |  |   |       |   |  |          | 7,278  |   |               |   |       |       |  |   |    |  |  |   | 7,278   |  
|Net change in unrealized appreciation (depreciation) on investments |  |                 | (5,752  | ) |                  |   | (561    | )              |  |   | 1,070  |   |  |          | 8,061  |   |               |   | (701   | )     |  |   |    |  |  |   | 2,117   |  
|Purchase of investments                                             |  |                 | 51,500  |   |                  |   | 5,600   |                |  |   |       |   |  |          | 3,813  |   |               |   |       |       |  |   |    |  |  |   | 60,913  |  
|Proceeds from sales and repayments of investments                   |  |                 | (10,595 | ) |                  |   | (17,025 | )              |  |   | (647   | ) |  |          | (7,826 | ) |               |   |       |       |  |   |    |  |  |   | (36,093 | )
|Interest and dividend income
paid-in-kind                           |  |                 | 1,111   |   |                  |   | 289     |                |  |   | 279    |   |  |          | 45     |   |               |   |       |       |  |   |    |  |  |   | 1,724   |  
|Proceeds from loan origination fees                                 |  |                 | (267    | ) |                  |   | (56     | )              |  |   |       |   |  |          |       |   |               |   |       |       |  |   |    |  |  |   | (323    | )
|Accretion of loan origination fees                                  |  |                 | 110     |   |                  |   | 93      |                |  |   | 9      |   |  |          | 2      |   |               |   |       |       |  |   |    |  |  |   | 214     |  
|Accretion of original issue discount                                |  |                 | 19      |   |                  |   | 36      |                |  |   |       |   |  |          | 2      |   |               |   |       |       |  |   |    |  |  |   | 57      |  
|                                                                    |  |                 |         |   |                  |   |         |                |  |   |        |   |  |          |        |   |               |   |        |       |  |   |     |  |  |   |         |  
|Balance, March 31, 2018                                             |  | $               | 377,405 |   |                  | $ | 114,857 |                |  | $ | 29,622 |   |  | $        | 95,960 |   |               | $ | 14,351 |       |  | $ |    |  |  | $ | 632,195 |  
|                                                                    |  |                 |         |   |                  |   |         |                |  |   |        |   |  |          |        |   |               |   |        |       |  |   |     |  |  |   |         |  

Net change in unrealized appreciation of $6,085 and $1,059 for the three months ended March 31, 2018 and
2017, respectively, was attributable to Level 3 investments held at March 31, 2018 and 2017, respectively.

The following tables
summarize the significant unobservable inputs by valuation technique used to determine the fair value of the Companys Level 3 debt and equity investments as of March 31, 2018 and December 31, 2017. The tables are not intended to
be all-inclusive, but instead capture the significant unobservable inputs relevant to the Companys determination of fair values.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



|                    |  |                                |         |  |                      |                      |                     |                                  |                         |  |                       | 
|------------------- |  | ------------------------------ | ------- |  | -------------------- | -------------------- | ------------------- | -------------------------------- | ----------------------- |  | --------------------- | 
|                    |  | Fair Value atMarch 31, 2018    |         |  | Valuation
Techniques |                      | Unobservable
Inputs |                                  | Range(weighted average) | 
|Debt investments:   |  |                                |         |  |                      |                      |                     |                                  |                         |  |                       | 
|Second Lien Debt    |  | $                              | 375,415 |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                         |  | 10.9% - 30.0% (13.4%) | 
|                    |  |                                | 1,990   |  |                      | Enterprise value     |                     | EBITDA multiples                 |                         |  | 3.0x - 5.5x (3.0x)    | 
|                    |  |                                |         | 
|Subordinated Debt   |  |                                | 114,857 |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                         |  | 10.9% - 21.5% (13.3%) | 
|                    |  |                                |         | 
|First Lien Debt     |  |                                | 26,524  |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                         |  | 12.2% - 30.0% (18.0%) | 
|                    |  |                                | 3,098   |  |                      | Enterprise value     |                     | Revenue multiples                |                         |  | 0.5x - 0.5x (0.5x)    | 
|Equity investments: |  |                                |         |  |                      |                      |                     |                                  |                         |  |                       | 
|Equity              |  |                                | 95,960  |  |                      | Enterprise value     |                     | EBITDA multiples                 |                         |  | 4.0x - 17.3x (7.6x)   | 
|                    |  |                                |         | 
|Warrants            |  |                                | 14,351  |  |                      | Enterprise value     |                     | EBITDA multiples                 |                         |  | 4.0x - 9.5x (7.7x)    | 
|                    |  |                                |         | 
|Royalty Rights      |  |                                |        |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                         |  | N/A                   | 
|                    |  |                                |         | 
|                    |  | Fair Value atDecember 31, 2017 |         |  | Valuation
Techniques |                      | Unobservable
Inputs |                                  | Range(weighted average) | 
|Debt investments:   |  |                                |         |  |                      |                      |                     |                                  |                         |  |                       | 
|Second Lien Debt    |  | $                              | 332,539 |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                         |  | 10.6% - 44.7% (14.6%) | 
|                    |  |                                | 8,740   |  |                      | Enterprise value     |                     | EBITDA multiples                 |                         |  | 2.2x - 6.0x (5.1x)    | 
|                    |  |                                |         | 
|Subordinated Debt   |  |                                | 126,481 |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                         |  | 10.9% - 20.8% (13.6%) | 
|                    |  |                                |         | 
|First Lien Debt     |  |                                | 16,289  |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                         |  | 11.8% - 13.1% (12.3%) | 
|                    |  |                                | 9,812   |  |                      | Enterprise value     |                     | EBITDA multiples                 |                         |  | 5.5x - 5.5x (5.5x)    | 
|                    |  |                                | 2,810   |  |                      | Enterprise value     |                     | Revenue multiples                |                         |  | 0.5x - 0.5x (0.5x)    | 
|                    |  |                                |         | 
|Equity investments: |  |                                |         |  |                      |                      |                     |                                  |                         |  |                       | 
|Equity              |  |                                | 84,585  |  |                      | Enterprise value     |                     | EBITDA multiples                 |                         |  | 4.0x - 17.3x (7.8x)   | 
|                    |  |                                |         | 
|Warrants            |  |                                | 15,052  |  |                      | Enterprise value     |                     | EBITDA multiples                 |                         |  | 4.0x - 9.5x (7.7x)    | 
|                    |  |                                |         | 
|Royalty Rights      |  |                                |        |  |                      | Discounted cash flow |                     | Weighted average cost of capital |                         |  | N/A                   | 

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

The significant unobservable inputs used in determining fair value under the enterprise value technique are revenue and EBITDA multiples, as
well as asset coverage. Significant increases (or decreases) in these inputs could result in significantly higher (or lower) fair value estimates.

Other Financial Assets and Liabilities

ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company
believes that the carrying amounts of its other financial instruments such as cash and cash equivalents, interest receivable and accounts payable and other liabilities approximate the fair value of such items due to the short maturity of such
instruments. The Companys borrowings under the Credit Facility (as defined in Note 6), SBA debentures, and Public Notes (as defined in Note 6) are recorded at their respective carrying values. The fair value of borrowings under the Credit
Facility, if valued under ASC Topic 820, are based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model. There were no borrowings outstanding under the Credit Facility as of March 31,
2018. As of December 31, 2017, the fair value of the Companys borrowings under the Credit Facility is estimated to be $11,500, which is the same as the Companys carrying value of the borrowings. As of March 31, 2018 and
December 31, 2017, the fair value of the Companys SBA debentures,



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



if valued under ASC Topic 820 using Level 3 inputs, is estimated to be $214,500 and $231,300, respectively, which is the same as the Companys carrying value of the debentures. The fair
value of SBA debentures is estimated by discounting remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the debentures. The
Public Notes, if valued under ASC Topic 820, would be valued using available market quotes, which is a Level 1 input. As of March 31, 2018, the fair value of the Public Notes is estimated to be $50,900, as compared to the carrying value of
$50,000.

Note 5. Related Party Transactions

Investment Advisory Agreement: The Company has entered into an Investment Advisory Agreement with the Investment Advisor. On
June 1, 2017, the Board approved the renewal of the Investment Advisory Agreement through June 20, 2018. Pursuant to the Investment Advisory Agreement and subject to the overall supervision of the Board, the Investment Advisor provides
investment advisory services to the Company. For providing these services, the Investment Advisor receives a fee, consisting of two components  a base management fee and an incentive fee.

The base management fee is calculated at an annual rate of 1.75% based on the average value of total assets (other than cash or cash
equivalents but including assets purchased with borrowed amounts) at the end of the two most recently completed calendar quarters. The base management fee is payable quarterly in arrears. The base management fee under the Investment Advisory
Agreement was $2,685 and $2,313, for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018 and December 31, 2017, the base management fee payable was $2,685 and $2,586, respectively;
such amounts are reported in the management and incentive fees payable  due to affiliate line on the consolidated statements of assets and liabilities.

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

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

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

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



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



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



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



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



The sum of the calculations above equals the income incentive fee. The income incentive fee
is appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the calendar quarter. The income incentive fee was $2,224 and $2,043, for the three months
ended March 31, 2018 and 2017, respectively. As of March 31, 2018 and December 31, 2017, the income incentive fee payable was $2,224 and $2,154, respectively; such amounts are reported in the management and incentive fees payable
 due to affiliate line on the consolidated statements of assets and liabilities.

The second part of the incentive fee is a capital
gains incentive fee that is determined and paid in arrears as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20.0% of the net capital gains as of the end of the
fiscal year. In determining the capital gains incentive fee to be paid to the Investment Advisor, the Company calculates the cumulative aggregate realized capital gains and cumulative aggregate realized capital losses since the Formation
Transactions, and the aggregate unrealized capital depreciation as of the date of the calculation, as applicable, with respect to each of the investments in the Companys portfolio. At the end of the applicable year, the amount of capital gains
that serves as the basis for the calculation of the capital gains incentive fee to be paid equals the cumulative aggregate realized capital gains less cumulative aggregate realized capital losses, less aggregate unrealized capital depreciation, with
respect to the Companys portfolio of investments. If this number is positive at the end of such year, then the capital gains incentive fee to be paid for such year equals 20.0% of such amount, less the aggregate amount of any capital gains
incentive fees paid in all prior years. As of March 31, 2018 and December 31, 2017, the capital gains incentive fee payable was $0. The aggregate amount of capital gains incentive fees paid from the IPO through March 31, 2018 was
$348.

In addition, the Company accrues, but does not pay, a capital gains incentive fee in connection with any unrealized capital
appreciation, as appropriate. If, on a cumulative basis, the sum of net realized gains/(losses) plus net unrealized appreciation/(depreciation) decreases during a period, the Company will reverse any excess capital gains incentive fee previously
accrued such that the amount of capital gains incentive fee accrued is no more than 20.0% of the sum of net realized gains/(losses) plus net unrealized appreciation/(depreciation). During the three months ended March 31, 2018 and 2017, the
Company accrued (reversed) capital gains incentive fees of $1,530 and $335, respectively. As of March 31, 2018 and December 31, 2017, the accrued capital gains incentive fee payable was $8,007 and $6,477, respectively; such amounts are
reported in the management and incentive fees payable  due to affiliate line on the consolidated statements of assets and liabilities.

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

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

Administration Agreement:The Company also entered into an administration agreement (the Administration Agreement) with the
Investment Advisor. On June 1, 2017, the Board approved the renewal of the Administration Agreement through June 20, 2018. Under the Administration Agreement, the Investment Advisor furnishes the Company with office facilities and
equipment, provides clerical, bookkeeping, and record keeping services at such facilities and provides the Company with other administrative services necessary to conduct its
day-to-day operations. The Company reimburses the Investment Advisor for the allocable portion of overhead expenses incurred in performing its obligations under the
Administration Agreement, including rent and the Companys allocable portion of the cost of its chief financial officer and chief compliance officer and their respective staffs. Under the Administration Agreement, the Investment Advisor also
provides managerial assistance to those portfolio companies to which the Company is required to provide such assistance and the Company reimburses the Investment Advisor for fees and expenses incurred with providing such services. In addition, the
Company reimburses the Investment Advisor for fees and expenses incurred while performing due diligence on the Companys prospective portfolio companies, including dead deal expenses. Under the Administration Agreement,
administrative expenses for services provided for the three months ended March 31, 2018 and 2017 totaled $399 and $351, respectively. As of March 31, 2018 and December 31, 2017, the accrued administrative service expense was $425 and
$562, respectively; such amounts are reported in the administration fee payable and other  due to affiliate line on the consolidated statements of assets and liabilities.

Note 6. Debt

Revolving Credit
Facility: On June 16, 2014, FIC entered into a senior secured revolving credit agreement (the Credit Facility) with ING Capital LLC (ING), as the administrative agent, collateral agent, and lender. The Credit
Facility has a commitment of $50,000 with an accordion feature that allows for an increase in the total commitments up to $75,000, subject to certain conditions and the satisfaction of specified financial covenants. The Credit Facility is secured by
certain portfolio



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



investments held by the Company, but portfolio investments held by the Funds are not collateral for the Credit Facility. On December 29, 2017, the Company entered into an amendment to the
Credit Facility to, among other things, extend the maturity date from June 16, 2018 to June 16, 2019.

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

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

The Company has made customary representations and warranties and is
required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the
Credit Facility. As of March 31, 2018 and December 31, 2017, the Company was in compliance in all material respect with the terms of the Credit Facility.

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

Under the SBA debenture program, the SBA commits to purchase debentures issued by SBICs; such debentures have
10-year terms with the entire principal balance due at maturity and are guaranteed by the SBA. Interest on SBA debentures is payable semi-annually on March 1 and September 1. Approved SBA debenture
commitments that were unused as of March 31, 2018 and December 31, 2017 were zero and $27,000, respectively. The SBA may limit the amount that may be drawn each year under these commitments, and each issuance of leverage is conditioned on
the Companys full compliance, as determined by the SBA, with the terms and conditions set forth in the SBIC Act.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



As of March 31, 2018 and December 31, 2017, the Companys issued and
outstanding SBA debentures mature as follows:



|                                 |  |               |  |                    |       |   |               |   |         |                  |  |   |         | 
|-------------------------------- |  | ------------- |  | ------------------ | ----- | - | ------------- | - | ------- | ---------------- |  | - | ------- | 
|Pooling
Date (1)                 |  | Maturity
Date |  | FixedInterest Rate |       |   | March 31,2018 |   |         | December 31,2017 | 
|3/25/2009                        |  | 3/1/2019      |  |                    | 5.337 | % |               | $ |        |                  |  | $ | 14,750  | 
|9/23/2009                        |  | 9/1/2019      |  |                    | 4.950 |   |               |   |        |                  |  |   | 10,000  | 
|3/24/2010                        |  | 3/1/2020      |  |                    | 4.825 |   |               |   |        |                  |  |   | 13,000  | 
|9/22/2010                        |  | 9/1/2020      |  |                    | 3.932 |   |               |   | 8,500   |                  |  |   | 12,500  | 
|3/29/2011                        |  | 3/1/2021      |  |                    | 4.801 |   |               |   |        |                  |  |   | 1,550   | 
|9/21/2011                        |  | 9/1/2021      |  |                    | 3.594 |   |               |   | 2,750   |                  |  |   | 3,250   | 
|3/21/2012                        |  | 3/1/2022      |  |                    | 3.483 |   |               |   | 3,250   |                  |  |   | 3,250   | 
|3/21/2012                        |  | 3/1/2022      |  |                    | 3.051 |   |               |   | 19,000  |                  |  |   | 19,000  | 
|9/19/2012                        |  | 9/1/2022      |  |                    | 2.530 |   |               |   | 11,000  |                  |  |   | 11,000  | 
|9/19/2012                        |  | 9/1/2022      |  |                    | 3.049 |   |               |   | 11,500  |                  |  |   | 11,500  | 
|3/27/2013                        |  | 3/1/2023      |  |                    | 3.155 |   |               |   | 3,000   |                  |  |   | 3,000   | 
|9/24/2014                        |  | 9/1/2024      |  |                    | 3.775 |   |               |   | 1,000   |                  |  |   | 1,000   | 
|3/25/2015                        |  | 3/1/2025      |  |                    | 3.321 |   |               |   | 5,500   |                  |  |   | 5,500   | 
|3/25/2015                        |  | 3/1/2025      |  |                    | 3.277 |   |               |   | 22,500  |                  |  |   | 22,500  | 
|9/23/2015                        |  | 9/1/2025      |  |                    | 3.571 |   |               |   | 16,700  |                  |  |   | 16,700  | 
|3/23/2016                        |  | 3/1/2026      |  |                    | 3.267 |   |               |   | 1,500   |                  |  |   | 1,500   | 
|3/23/2016                        |  | 3/1/2026      |  |                    | 3.249 |   |               |   | 21,800  |                  |  |   | 21,800  | 
|9/21/2016                        |  | 9/1/2026      |  |                    | 2.793 |   |               |   | 500     |                  |  |   | 500     | 
|3/29/2017                        |  | 3/1/2027      |  |                    | 3.587 |   |               |   | 10,000  |                  |  |   | 10,000  | 
|9/20/2017                        |  | 9/1/2027      |  |                    | 3.260 |   |               |   | 1,000   |                  |  |   | 1,000   | 
|9/20/2017                        |  | 9/1/2027      |  |                    | 3.190 |   |               |   | 33,000  |                  |  |   | 33,000  | 
|3/21/2018                        |  | 3/1/2028      |  |                    | 3.859 |   |               |   | 16,000  |                  |  |   | 15,000  | 
|3/21/2018                        |  | 3/1/2028      |  |                    | 3.534 |   |               |   | 15,500  |                  |  |   |        | 
|(2)                              |  | (2)           |  |                    | (2    | ) |               |   | 7,000   |                  |  |   |        | 
|(2)                              |  | (2)           |  |                    | (2    | ) |               |   | 2,500   |                  |  |   |        | 
|(2)                              |  | (2)           |  |                    | (2    | ) |               |   | 1,000   |                  |  |   |        | 
|                                 |  |               |  |                    |       |   |               |   |         |                  |  |   |         | 
|Total outstanding SBA debentures |  |               |  |                    |       |   |               | $ | 214,500 |                  |  | $ | 231,300 | 
|                                 |  |               |  |                    |       |   |               |   |         |                  |  |   |         | 



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

|(2) | The Company issued $10,500 in SBA debentures which will pool in September 2018. Until the pooling date, the debentures bear interest at a fixed rate interim interest rates ranging from 2.951% to 3.419%. The Company
expects the current interim interest rate will reset to a higher long-term fixed rate on the pooling date.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Public Notes:On February 2, 2018, the Company closed the public offering of approximately $43,478 in aggregate principal amount of its 5.875% notes due 2023, or the Public Notes. On February 22, 2018, the underwriters exercised their
option to purchase an additional $6,522 in aggregate principal of the Public Notes. The total net proceeds to the Company from the Public Notes, including the exercise of the underwriters option, after deducting underwriting discounts of
approximately $1,500 and estimated offering expenses of $400, were approximately $48,100.

The Public Notes mature on February 1,
2023 and bear interest at a rate of 5.875%. The Public Notes are unsecured obligations of the Company and rank pari passu with the Companys future unsecured indebtedness; effectively subordinated to all of the existing and future secured
indebtedness of the Company; and structurally subordinated to all existing and future indebtedness and other obligations of any subsidiaries, financing vehicles, or similar facilities the Company may form in the future, with respect to claims on the
assets of any such subsidiaries, financing vehicles, or similar facilities. The Public Notes may be redeemed in whole or in part at any time or from time to time at the Companys option on or after February 1, 2020. Interest on the Public
Notes is payable quarterly on February 1, May 1, August 1 and November 1 of each year. The Public Notes are listed on the NASDAQ Global Select Market under the trading symbol FDUSL.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



Interest and fees related to the Companys debt for the three months
ended March 31, 2018 and 2017 which are included in interest and financing expenses on the consolidated statements of operations, were as follows:



|                                                  |  |                                   |       |   |                                   |   |       |             |  |   |       |   |  |               |       |   |                |   |       |             |  |   |       |   |  |   |     |  |  |   |       |  
|------------------------------------------------- |  | --------------------------------- | ----- | - | --------------------------------- | - | ----- | ----------- |  | - | ----- | - |  | ------------- | ----- | - | -------------- | - | ----- | ----------- |  | - | ----- | - |  | - | --- |  |  | - | ----- | -
|                                                  |  | Three Months Ended March 31, 2018 |       |   | Three Months Ended March 31, 2017 |  
|                                                  |  | SBAdebentures                     |       |   | CreditFacility                    |   |       | PublicNotes |  |   | Total |   |  | SBAdebentures |       |   | CreditFacility |   |       | PublicNotes |  |   | Total |  
|Stated interest expense                           |  | $                                 | 1,947 |   |                                   | $ | 224   |             |  | $ | 444   |   |  | $             | 2,615 |   |                | $ | 2,118 |             |  | $ | 125   |   |  | $ |    |  |  | $ | 2,243 |  
|Amortization of deferred financing costs          |  |                                   | 343   |   |                                   |   | 65    |             |  |   | 59    |   |  |               | 467   |   |                |   | 254   |             |  |   | 87    |   |  |   |    |  |  |   | 341   |  
|                                                  |  |                                   |       |   |                                   |   |       |             |  |   |       |   |  |               |       |   |                |   |       |             |  |   |       |   |  |   |     |  |  |   |       |  
|Total interest and financing expenses             |  | $                                 | 2,290 |   |                                   | $ | 289   |             |  | $ | 503   |   |  | $             | 3,082 |   |                | $ | 2,372 |             |  | $ | 212   |   |  | $ |    |  |  | $ | 2,584 |  
|                                                  |  |                                   |       |   |                                   |   |       |             |  |   |       |   |  |               |       |   |                |   |       |             |  |   |       |   |  |   |     |  |  |   |       |  
|Weighted average stated interest rate, period end |  |                                   | 3.311 | % |                                   |   | N/A   |             |  |   | 5.875 | % |  |               | 3.796 | % |                |   | 3.879 | %           |  |   | N/A   |   |  |   | N/A |  |  |   | 3.879 | %
|Unused commitment fee rate, period end            |  |                                   | N/A   |   |                                   |   | 1.000 | %           |  |   | N/A   |   |  |               | 1.000 | % |                |   | N/A   |             |  |   | 1.000 | % |  |   | N/A |  |  |   | 1.000 | %

Deferred Financing Costs

Deferred financing costs are amortized into interest and financing expenses on the consolidated statements of operations using the effective
interest method, over the term of the respective financing instrument. Deferred financing costs related to the Credit Facility, SBA debentures, and Public Notes as of March 31, 2018 and December 31, 2017 were as follows:



|                                     |  |                |        |   |                   |   |        |             |  |   |       |   |  |               |        |   |                |   |        |             |  |   |        |   |  |   |   |  |  |   |        |  
|------------------------------------ |  | -------------- | ------ | - | ----------------- | - | ------ | ----------- |  | - | ----- | - |  | ------------- | ------ | - | -------------- | - | ------ | ----------- |  | - | ------ | - |  | - | - |  |  | - | ------ | -
|                                     |  | March 31, 2018 |        |   | December 31, 2017 |  
|                                     |  | SBAdebentures  |        |   | CreditFacility    |   |        | PublicNotes |  |   | Total |   |  | SBAdebentures |        |   | CreditFacility |   |        | PublicNotes |  |   | Total  |  
|SBA debenture commitment fees        |  | $              | 3,000  |   |                   | $ |       |             |  | $ |      |   |  | $             | 3,000  |   |                | $ | 3,000  |             |  | $ |       |   |  | $ |  |  |  | $ | 3,000  |  
|SBA debenture leverage fees          |  |                | 7,276  |   |                   |   |       |             |  |   |      |   |  |               | 7,276  |   |                |   | 6,621  |             |  |   |       |   |  |   |  |  |  |   | 6,621  |  
|Credit Facility upfront fees         |  |                |       |   |                   |   | 1,500  |             |  |   |      |   |  |               | 1,500  |   |                |   |       |             |  |   | 1,495  |   |  |   |  |  |  |   | 1,495  |  
|Public Notes underwriting discounts  |  |                |       |   |                   |   |       |             |  |   | 1,500 |   |  |               | 1,500  |   |                |   |       |             |  |   |       |   |  |   |  |  |  |   |       |  
|Public Notes debt issue costs        |  |                |       |   |                   |   |       |             |  |   | 400   |   |  |               | 400    |   |                |   |       |             |  |   |       |   |  |   |  |  |  |   |       |  
|                                     |  |                |        |   |                   |   |        |             |  |   |       |   |  |               |        |   |                |   |        |             |  |   |        |   |  |   |   |  |  |   |        |  
|Total deferred financing costs       |  |                | 10,276 |   |                   |   | 1,500  |             |  |   | 1,900 |   |  |               | 13,676 |   |                |   | 9,621  |             |  |   | 1,495  |   |  |   |  |  |  |   | 11,116 |  
|Less: accumulated amortization       |  |                | (5,324 | ) |                   |   | (1,235 | )           |  |   | (59   | ) |  |               | (6,618 | ) |                |   | (4,981 | )           |  |   | (1,170 | ) |  |   |  |  |  |   | (6,151 | )
|                                     |  |                |        |   |                   |   |        |             |  |   |       |   |  |               |        |   |                |   |        |             |  |   |        |   |  |   |   |  |  |   |        |  
|Unamortized deferred financing costs |  | $              | 4,952  |   |                   | $ | 265    |             |  | $ | 1,841 |   |  | $             | 7,058  |   |                | $ | 4,640  |             |  | $ | 325    |   |  | $ |  |  |  | $ | 4,965  |  
|                                     |  |                |        |   |                   |   |        |             |  |   |       |   |  |               |        |   |                |   |        |             |  |   |        |   |  |   |   |  |  |   |        |  

Unamortized deferred financing costs are presented as a direct offset to the SBA debentures and Credit
Facility liabilities on the consolidated statements of assets and liabilities. The following table summarizes the outstanding debt net of unamortized deferred financing costs as of March 31, 2018 and December 31, 2017:



|                                           |  |                |         |   |                   |   |      |             |  |   |        |   |  |               |         |   |                |   |         |             |  |   |        |   |  |   |   |  |  |   |         |  
|------------------------------------------ |  | -------------- | ------- | - | ----------------- | - | ---- | ----------- |  | - | ------ | - |  | ------------- | ------- | - | -------------- | - | ------- | ----------- |  | - | ------ | - |  | - | - |  |  | - | ------- | -
|                                           |  | March 31, 2018 |         |   | December 31, 2017 |  
|                                           |  | SBAdebentures  |         |   | CreditFacility    |   |      | PublicNotes |  |   | Total  |   |  | SBAdebentures |         |   | CreditFacility |   |         | PublicNotes |  |   | Total  |  
|Outstanding debt                           |  | $              | 214,500 |   |                   | $ |     |             |  | $ | 50,000 |   |  | $             | 264,500 |   |                | $ | 231,300 |             |  | $ | 11,500 |   |  | $ |  |  |  | $ | 242,800 |  
|Less: unamortized deferred financing costs |  |                | (4,952  | ) |                   |   | (265 | )           |  |   | (1,841 | ) |  |               | (7,058  | ) |                |   | (4,640  | )           |  |   | (325   | ) |  |   |  |  |  |   | (4,965  | )
|                                           |  |                |         |   |                   |   |      |             |  |   |        |   |  |               |         |   |                |   |         |             |  |   |        |   |  |   |   |  |  |   |         |  
|Debt, net of deferred financing costs      |  | $              | 209,548 |   |                   | $ | (265 | )           |  | $ | 48,159 |   |  | $             | 257,442 |   |                | $ | 226,660 |             |  | $ | 11,175 |   |  | $ |  |  |  | $ | 237,835 |  
|                                           |  |                |         |   |                   |   |      |             |  |   |        |   |  |               |         |   |                |   |         |             |  |   |        |   |  |   |   |  |  |   |         |  



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



As of March 31, 2018, the Companys debt liabilities are scheduled to mature as
follows:



|      |  |               |         |  |                    |   |   |             |  |   |        |  |  |   |         | 
|----- |  | ------------- | ------- |  | ------------------ | - | - | ----------- |  | - | ------ |  |  | - | ------- | 
|Year  |  | SBAdebentures |         |  | CreditFacility (1) |   |   | PublicNotes |  |   | Total  | 
|2018  |  | $             |        |  |                    | $ |  |             |  | $ |       |  |  | $ |        | 
|2019  |  |               |        |  |                    |   |  |             |  |   |       |  |  |   |        | 
|2020  |  |               | 8,500   |  |                    |   |  |             |  |   |       |  |  |   | 8,500   | 
|2021  |  |               | 2,750   |  |                    |   |  |             |  |   |       |  |  |   | 2,750   | 
|2022  |  |               | 44,750  |  |                    |   |  |             |  |   |       |  |  |   | 44,750  | 
|2023  |  |               | 3,000   |  |                    |   |  |             |  |   | 50,000 |  |  |   | 53,000  | 
|2024  |  |               | 1,000   |  |                    |   |  |             |  |   |       |  |  |   | 1,000   | 
|2025  |  |               | 44,700  |  |                    |   |  |             |  |   |       |  |  |   | 44,700  | 
|2026  |  |               | 23,800  |  |                    |   |  |             |  |   |       |  |  |   | 23,800  | 
|2027  |  |               | 44,000  |  |                    |   |  |             |  |   |       |  |  |   | 44,000  | 
|2028  |  |               | 42,000  |  |                    |   |  |             |  |   |       |  |  |   | 42,000  | 
|      |  |               |         |  |                    |   |   |             |  |   |        |  |  |   |         | 
|Total |  | $             | 214,500 |  |                    | $ |  |             |  | $ | 50,000 |  |  | $ | 264,500 | 
|      |  |               |         |  |                    |   |   |             |  |   |        |  |  |   |         | 



|(1) | The Companys Credit Facility matures on June 16, 2019. As of March 31, 2018, there were no outstanding borrowings under the Credit Facility.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------

Note 7. Commitments and Contingencies

Commitments: The Company had outstanding commitments to portfolio companies to fund various undrawn revolving loans, other credit
facilities and capital commitments totaling $8,485 and $8,352 as of March 31, 2018 and December 31, 2017, respectively. Such outstanding commitments are summarized in the following table:



|                                                        |  |                 |       |  |                    |   |       |                 |  |   |                    |  |  |   |       | 
|------------------------------------------------------- |  | --------------- | ----- |  | ------------------ | - | ----- | --------------- |  | - | ------------------ |  |  | - | ----- | 
|                                                        |  | March 31, 2018  |       |  | December 31, 2017  |  
|Portfolio Company - Investment                          |  | TotalCommitment |       |  | UnfundedCommitment |   |       | TotalCommitment |  |   | UnfundedCommitment | 
|B&B Roadway and Security Solutions, LLC - Common Equity |  | $               | 133   |  |                    | $ | 133   |                 |  | $ |                   |  |  | $ |      | 
|Mesa Line Services, LLC - Delayed Draw Commitment       |  |                 | 4,000 |  |                    |   | 4,000 |                 |  |   | 4,000              |  |  |   | 4,000 | 
|Oaktree Medical Centre, P.C.  Revolving Loan           |  |                 |      |  |                    |   |      |                 |  |   | 2,500              |  |  |   |      | 
|Rhino Assembly Company, LLC - Delayed Draw Commitment   |  |                 | 1,500 |  |                    |   | 1,500 |                 |  |   | 1,500              |  |  |   | 1,500 | 
|Safety Products Group, LLC - Common Equity              |  |                 | 2,852 |  |                    |   | 2,852 |                 |  |   | 2,852              |  |  |   | 2,852 | 
|                                                        |  |                 |       |  |                    |   |       |                 |  |   |                    |  |  |   |       | 
|Total                                                   |  | $               | 8,485 |  |                    | $ | 8,485 |                 |  | $ | 10,852             |  |  | $ | 8,352 | 
|                                                        |  |                 |       |  |                    |   |       |                 |  |   |                    |  |  |   |       | 

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

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

Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of
representations and warranties that provide indemnifications under certain circumstances. In addition, in connection with the disposition of an investment in a portfolio company, the Company may be required to make representations about the business
and financial affairs of such portfolio company typical of those made in connection with the sale of a business. The Company may also be required to indemnify the purchasers of such investment to the extent that any such representations are
inaccurate. The Companys maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company expects the risk of future obligation under these
indemnifications to be remote.

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



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



Note 8. Common Stock

Public Offerings of Common Stock

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



|                   |  |                 |           |     |               |   |        |                                                   |  |   |               |     |  |   |       |    
|------------------ |  | --------------- | --------- | --- | ------------- | - | ------ | ------------------------------------------------- |  | - | ------------- | --- |  | - | ----- | ---
|Offering Date      |  | Numberof Shares |           |     | GrossProceeds |   |        | UnderwritingFees andCommissions andOffering Costs |  |   | OfferingPrice |    
|September 11, 2012 |  |                 | 2,472,500 |     |               | $ | 39,807 |                                                   |  | $ | 1,855         |     |  | $ | 16.10 |    
|February 8, 2013   |  |                 | 1,725,000 |     |               |   | 30,361 |                                                   |  |   | 1,504         |     |  |   | 17.60 |    
|September 30, 2014 |  |                 | 2,083,414 | (1) |               |   | 35,418 |                                                   |  |   | 1,747         |     |  |   | 17.00 |    
|May 27, 2016       |  |                 | 2,875,000 | (2) |               |   | 43,755 |                                                   |  |   | 56            | (5) |  |   | 15.22 | (6)
|November 29, 2016  |  |                 | 3,220,000 | (3) |               |   | 53,446 |                                                   |  |   | 2,319         |     |  |   | 16.60 | (7)
|June 20, 2017      |  |                 | 2,012,500 | (4) |               |   | 33,810 |                                                   |  |   | 1,508         |     |  |   | 16.80 |    



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

|(2) | Includes 375,000 shares purchased by underwriters pursuant to the over-allotment option on June 10, 2016.
|--- | ---------------------------------------------------------------------------------------------------------

|(3) | Includes 420,000 shares purchased by underwriters pursuant to the over-allotment option on December 13, 2016.
|--- | -------------------------------------------------------------------------------------------------------------

|(4) | Includes 262,500 shares purchased by underwriters pursuant to the over-allotment option on June 29, 2017.
|--- | ---------------------------------------------------------------------------------------------------------

|(5) | Fidus Investment Advisors, LLC agreed to bear up to $169 of the offering costs associated with this offering. Fidus Investment Advisors, LLC has also agreed to bear $1,756, or 100%, of the underwriting fees and
commissions in connection with this offering and the exercise of the over-allotment option. All payments made by Fidus Investment Advisors, LLC are not subject to reimbursement by the Company.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Represents the weighted average offering price of shares issued, including the shares issued pursuant to the over-allotment option. Shares were issued on May 27, 2016 at an offering price of $15.27. The offering
price of the over-allotment option shares was adjusted for the $0.39 dividend to shareholders of record on June 10, 2016.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | Represents the weighted average offering price of shares issued, including the shares issued pursuant to the over-allotment option. Shares were issued on November 29, 2016 at an offering price of $16.65. The
offering price of the over-allotment option shares was adjusted for the $0.43 dividend to shareholders of record on November 30, 2016.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Common Stock ATM Program

On
August 21, 2014, the Company entered into an equity distribution agreement with Raymond James & Associates, Inc. and Robert W. Baird & Co. Incorporated through which the Company could sell, by means of at-the-market offerings from time to time, shares of the Companys common stock having an aggregate offering price of up to $50,000 (the ATM Program). There
were no issuances of common stock under the ATM program during the last two fiscal years and for the three months ended March 31, 2018.

Stock
Repurchase Program

As described in Note 2, the Company has Stock Repurchase Program under which the Company may acquire up to $5,000
of its outstanding common stock. During the three months ended March 31, 2018, the Company repurchased 44,821 shares of common stock on the open market for $582. The Company did not make any repurchases of common stock during the three months
ended March 31, 2017. The Companys NAV per share increased by approximately $0.01 for the three months ended March 31, 2018 as a result of the share repurchases. The following table summarizes the Companys share repurchases
under the Stock Repurchase Program for the three months ended March 31, 2018 and 2017:



|                                                           |  |                              |        |   |      |   |     | 
|---------------------------------------------------------- |  | ---------------------------- | ------ | - | ---- | - | --- | 
|                                                           |  | Three Months Ended March 31, |       
|Repurchases of Common Stock                                |  | 2018                         |        |   | 2017 |  
|Number of shares repurchased                               |  |                              | 44,821 |   |      |   |    | 
|Cost of shares repurchased, including commissions          |  | $                            | 582    |   |      | $ |    | 
|Weighted average price per share                           |  | $                            | 12.94  |   |      | $ |    | 
|Net asset value per share at prior quarter end             |  | $                            | 16.05  |   |      |   | N/A | 
|Weighted average discount to prior quarter net asset value |  |                              | 19.4   | % |      |   | N/A | 

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



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



As of March 31, 2018 and December 31, 2017, the Company had 24,463,119 and
24,507,940 shares of common stock outstanding, respectively.

Note 9. Dividends and Distributions

The Companys dividends and distributions are recorded on the record date. The following table summarizes the dividends paid during the
last two fiscal years and for the three months ended March 31, 2018.



|                                     |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 
|------------------------------------ |  | ---------- | ---------- |  | ----------- |  | ---------- | --------------- |  | - | ----------------- |  |  | ---------------- | ------ |  | --------------- | - | ------ | ---------- |  | - | -------------------- | --- |  |  | ------ | --- |  | - | ----- | 
|Date
Declared                        |  | RecordDate |            |  | PaymentDate |  |            | AmountPer Share |  |   | TotalDistribution |  |  | CashDistribution |        |  | DRIPSharesValue |   |        | DRIPShares |  |   | DRIPShareIssue Price |    
|Fiscal Year Ended December 31, 2016: |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 
|2/16/2016                            |  |            | 3/11/2016  |  |             |  | 3/25/2016  |                 |  | $ | 0.39              |  |  | $                | 6,357  |  |                 | $ | 6,177  |            |  | $ | 180                  |     |  |  | 11,631 |     |  | $ | 15.49 | 
|5/2/2016                             |  |            | 6/10/2016  |  |             |  | 6/24/2016  |                 |  |   | 0.39              |  |  |                  | 7,337  |  |                 |   | 7,143  |            |  |   | 194                  |     |  |  | 12,722 |     |  |   | 15.25 | 
|8/1/2016                             |  |            | 9/9/2016   |  |             |  | 9/23/2016  |                 |  |   | 0.39              |  |  |                  | 7,488  |  |                 |   | 7,293  |            |  |   | 195                  |     |  |  | 12,340 |     |  |   | 15.76 | 
|11/1/2016                            |  |            | 12/2/2016  |  |             |  | 12/16/2016 |                 |  |   | 0.39              |  |  |                  | 8,585  |  |                 |   | 8,386  |            |  |   | 199                  |     |  |  | 12,381 |     |  |   | 16.08 | 
|11/1/2016 (1)                        |  |            | 12/2/2016  |  |             |  | 12/16/2016 |                 |  |   | 0.04              |  |  |                  | 880    |  |                 |   | 860    |            |  |   | 20                   |     |  |  | 1,270  |     |  |   | 16.08 | 
|                                     |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 
|                                     |  |            |            |  |             |  |            |                 |  | $ | 1.60              |  |  | $                | 30,647 |  |                 | $ | 29,859 |            |  | $ | 788                  |     |  |  | 50,344 |     |  |   |       | 
|                                     |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 
|Fiscal Year Ended December 31, 2017: |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 
|2/14/2017                            |  |            | 3/10/2017  |  |             |  | 3/24/2017  |                 |  | $ | 0.39              |  |  | $                | 8,754  |  |                 | $ | 8,556  |            |  | $ | 198                  |     |  |  | 11,500 |     |  |   | 17.17 | 
|5/1/2017                             |  |            | 6/9/2017   |  |             |  | 6/23/2017  |                 |  |   | 0.39              |  |  |                  | 8,758  |  |                 |   | 8,582  |            |  |   | 176                  |     |  |  | 10,548 |     |  |   | 16.74 | 
|7/31/2017                            |  |            | 9/8/2017   |  |             |  | 9/22/2017  |                 |  |   | 0.39              |  |  |                  | 9,548  |  |                 |   | 9,353  |            |  |   | 195                  |     |  |  | 12,256 |     |  |   | 15.90 | 
|10/30/2017                           |  |            | 12/20/2017 |  |             |  | 12/27/2017 |                 |  |   | 0.39              |  |  |                  | 9,552  |  |                 |   | 9,343  |            |  |   | 209                  |     |  |  | 13,659 |     |  |   | 15.30 | 
|10/30/2017(1)                        |  |            | 12/20/2017 |  |             |  | 12/27/2017 |                 |  |   | 0.04              |  |  |                  | 980    |  |                 |   | 959    |            |  |   | 21                   |     |  |  | 1,401  |     |  |   | 15.30 | 
|                                     |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 
|                                     |  |            |            |  |             |  |            |                 |  | $ | 1.60              |  |  | $                | 37,592 |  |                 | $ | 36,793 |            |  | $ | 799                  |     |  |  | 49,364 |     |  |   |       | 
|                                     |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 
|Three Months Ended March 31, 2018:   |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 
|2/13/2018                            |  |            | 3/9/2018   |  |             |  | 3/23/2018  |                 |  | $ | 0.39              |  |  | $                | 9,558  |  |                 | $ | 9,558  |            |  | $ |                     | (2) |  |  |       | (2) |  |   |      | 
|                                     |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 
|                                     |  |            |            |  |             |  |            |                 |  | $ | 0.39              |  |  | $                | 9,558  |  |                 | $ | 9,558  |            |  | $ |                     |     |  |  |       |     |  |   |       | 
|                                     |  |            |            |  |             |  |            |                 |  |   |                   |  |  |                  |        |  |                 |   |        |            |  |   |                      |     |  |  |        |     |  |   |       | 



|(1) | Special dividend.
|--- | -----------------

|(2) | During the three months ended March 31, 2018, the Company directed the DRIP program plan administrator to repurchase shares on the open market in order to satisfy the DRIP obligation to deliver shares of common
stock in lieu of issuing new shares. Accordingly, the Company purchased and reissued 16,503 shares of common stock at an average price of $12.97, for a total of $214.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Since the Companys IPO, dividends and distributions to stockholders total $176,858 or $10.95 per share.



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FIDUS INVESTMENT CORPORATION

Notes to Consolidated Financial Statements (unaudited)

(in thousands, except shares and per share data)



Note 10. Financial Highlights

The following is a schedule of financial highlights for the three months ended March 31, 2018 and 2017:



|                                                                         |  |                              |            |    |      |   |            |  
|------------------------------------------------------------------------ |  | ---------------------------- | ---------- | -- | ---- | - | ---------- | -
|                                                                         |  | Three Months Ended March 31, |           
|                                                                         |  | 2018                         |            |    | 2017 |  
|Per share data:                                                          |  |                              |            |    |      |   |            |  
|Net asset value at beginning of period                                   |  | $                            | 16.05      |    |      | $ | 15.76      |  
|Net investment income (1)                                                |  |                              | 0.30       |    |      |   | 0.35       |  
|Net realized gain (loss) on investments, net of tax benefit (refund) (1) |  |                              | 0.22       |    |      |   | 0.22       |  
|Net unrealized appreciation (depreciation) on investments (1)            |  |                              | 0.09       |    |      |   | (0.15      | )
|                                                                         |  |                              |            |    |      |   |            |  
|Total increase from investment operations (1)                            |  |                              | 0.61       |    |      |   | 0.42       |  
|Accretive (dilutive) effect of share issuances and repurchases           |  |                              | 0.01       |    |      |   |           |  
|Dividends to stockholders                                                |  |                              | (0.39      | )  |      |   | (0.39      | )
|Other (2)                                                                |  |                              |           |    |      |   | 0.01       |  
|                                                                         |  |                              |            |    |      |   |            |  
|Net asset value at end of period                                         |  | $                            | 16.28      |    |      | $ | 15.80      |  
|                                                                         |  |                              |            |    |      |   |            |  
|Market value at end of period                                            |  | $                            | 12.88      |    |      | $ | 17.57      |  
|                                                                         |  |                              |            |    |      |   |            |  
|Shares outstanding at end of period                                      |  |                              | 24,463,119 |    |      |   | 22,457,576 |  
|Weighted average shares outstanding during the period                    |  |                              | 24,498,041 |    |      |   | 22,446,970 |  
|Net assets at end of period                                              |  | $                            | 398,158    |    |      | $ | 354,812    |  
|Average net assets (7)                                                   |  | $                            | 395,716    |    |      | $ | 354,299    |  
|Ratios to average net assets:                                            |  |                              |            |    |      |   |            |  
|Total expenses (3)(5)(8)                                                 |  |                              | 10.8       | %  |      |   | 9.5        | %
|Net investment income (3)(6)                                             |  |                              | 7.5        | %  |      |   | 8.9        | %
|Total return (4)                                                         |  |                              | (12.6      | %) |      |   | 14.2       | %
|Portfolio turnover ratio (3)                                             |  |                              | 23.5       | %  |      |   | 36.0       | %
|Supplemental Data:                                                       |  |                              |            |    |      |   |            |  
|Average debt outstanding                                                 |  | $                            | 253,650    |    |      | $ | 211,625    |  
|Average debt per share (1)                                               |  | $                            | 10.35      |    |      | $ | 9.43       |  



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

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

|(3) | Annualized.
|--- | -----------

|(4) | The total return for the three months ended March 31, 2018 and 2017 equals the change in the market value of the Companys common stock per share during the period plus dividends paid per share during the
period, divided by the market value per share at the beginning of the period.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | The total expenses to average net assets ratio is calculated using the total expenses caption as presented on the consolidated statements of operations, which includes incentive fee and excludes the income tax
provision.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | The net investment income to average net assets ratio is calculated using the net investment income caption as presented on the consolidated statements of operations, which includes incentive fee.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(7) | Average net assets is calculated as the average of the net asset balances as of each quarter end during the fiscal year and the prior year end.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------

|(8) | The following is a schedule of supplemental expense ratios to average net assets:
|--- | ---------------------------------------------------------------------------------



|                                      |  |                              |      |   |      |  |     |  
|------------------------------------- |  | ---------------------------- | ---- | - | ---- |  | --- | -
|                                      |  | Three Months Ended March 31, |     
|Ratio to average net assets:          |  | 2018                         |      |   | 2017 | 
|Expenses other than incentive fee (3) |  |                              | 7.0  | % |      |  | 6.8 | %
|Incentive fee (3)                     |  |                              | 3.8  | % |      |  | 2.7 | %
|                                      |  |                              |      |   |      |  |     |  
|Total expenses (3)(5)                 |  |                              | 10.8 | % |      |  | 9.5 | %
|                                      |  |                              |      |   |      |  |     |  



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Note 11. Subsequent Events

On April 3, 2018, the Company invested $7,805 in subordinated debt and common equity of UBEO, LLC, a premier provider of printer, copier,
and related office equipment sales and services.

On April 12, 2018, the Company invested $11,950 in second lien debt, preferred
equity and common equity of Power Grid Components, Inc., a supplier of high quality, mission critical products used in the North American electric power grid.

On April 19, 2018, the Company exited its debt investment in Allied 100 Group, Inc. The Company received payment in full of $13,000 on
its subordinated debt.

On April 30, 2018, the Board declared a regular quarterly dividend of $0.39 per share payable on
June 22, 2018 to stockholders of record as of June 8, 2018.



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##### Table of Contents

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

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Fidus
Investment Corporations consolidated financial statements and related notes appearing in our annual report on Form 10-K for the year ended December 31, 2017, filed with the U.S. Securities and
Exchange Commission (SEC) on March 1, 2018. The information contained in this section should also be read in conjunction with our unaudited consolidated financial statements and related notes thereto appearing elsewhere in this
quarterly report on Form 10-Q.

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

Forward Looking Statements

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



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



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



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



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



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



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



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



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



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

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



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



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



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



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



| |  |  | the risks, uncertainties and other factors we identify in Item 1A.  Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31,
2017, elsewhere in this Quarterly Report on Form 10-Q and in our other filings with the SEC.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could
prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include our ability to originate new loans and investments, certain margins and levels of
profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly Report on Form 10-Q should not
be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in Item 1.A  Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly
Report on Form 10-Q.



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##### Table of Contents

Overview

General and Corporate Structure

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

FIC was formed as a Maryland corporation on February 14, 2011. We completed our initial public offering, or IPO, in June 2011.

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

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

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

Investments

We seek to create a diversified investment portfolio that primarily includes mezzanine loans and, to a lesser extent, equity securities. Our
investments typically range between $5.0 million to $30.0 million per portfolio company, although this investment size may vary proportionately with the size of our capital base. Our investment objective is to provide attractive
risk-adjusted returns by generating both current income from our debt investments and capital appreciation from our equity related investments. We may invest in the equity securities of our portfolio companies, such as preferred stock, common stock,
warrants and other equity interests, either directly or in conjunction with our debt investments.

Second Lien Debt. The majority
of our debt investments take the form of second lien debt, which includes senior subordinated notes. Second lien debt investments obtain security interests in the assets of the portfolio company as collateral in support of the repayment of such
loans. Second lien debt typically is senior on a lien basis to other liabilities in the issuers capital structure and has the benefit of a security interest over assets of the issuer, though ranking junior to first lien debt secured by those
assets. First lien lenders and second lien lenders typically have separate liens on the collateral, and an intercreditor agreement provides the first lien lenders with priority over the second lien lenders liens on the collateral. These loans
typically provide for no contractual loan amortization, with all amortization deferred until loan maturity, and may include payment-in-kind (PIK) interest,
which increases the principal balance over the term and, coupled with the deferred principal payment provision, increases credit risk exposure over the life of the loan.

Subordinated (Mezzanine) Debt. These investments are typically structured as unsecured, subordinated notes. Structurally,
mezzanine debt usually ranks subordinate in priority of payment to first lien and second lien debt and may not have the benefit of financial covenants common in first lien and second lien debt. Unsecured debt may rank junior as it relates to
proceeds in certain liquidations where it does not have the benefit of a lien in specific collateral held by creditors (typically first lien and/or second lien) who have a perfected security interest in such collateral. However, both mezzanine and
unsecured debt



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ranks senior to common and preferred equity in an issuers capital structure. These loans typically have relatively higher fixed interest rates (often representing a combination of cash pay
and PIK interest) and amortization of principal deferred to maturity. The PIK feature (meaning a feature allowing for the payment of interest in the form of additional principal amount of the loan instead of in cash), which effectively operates as
negative amortization of loan principal, coupled with the deferred principal payment provision, increases credit risk exposure over the life of the loan.

First Lien Debt. To a lesser extent, we also structure some of our debt investments as senior secured or first lien debt investments.
First lien debt investments are secured by a first priority lien on existing and future assets of the borrower and may take the form of term loans or revolving lines of credit. First lien debt is typically senior on a lien basis to other liabilities
in the issuers capital structure and has the benefit of a first-priority security interest in assets of the issuer. The security interest ranks above the security interest of any second lien lenders in those assets. Our first lien debt may
include stand-alone first lien loans, last out first lien loans, or unitranche loans. Stand-alone first lien loans are traditional first lien loans. All lenders in the facility have equal rights to the collateral that is
subject to the first-priority security interest. Last out first lien loans have a secondary priority behind super-senior first out first lien loans in the collateral securing the loans in certain circumstances. The
arrangements for a last out first lien loan are set forth in an agreement among lenders, which provides lenders with first out and last out payment streams based on a single lien on the collateral.
Since the first out lenders generally have priority over the last out lenders for receiving payment under certain specified events of default, or upon the occurrence of other triggering events under intercreditor agreements
or agreements among lenders, the last out lenders bear a greater risk and, in exchange, receive a higher effective interest rate, through arrangements among the lenders, than the first out lenders or lenders in stand-alone
first lien loans. Agreements among lenders also typically provide greater voting rights to the last out lenders than the intercreditor agreements to which second lien lenders often are subject.

Many of our debt investments also include excess cash flow sweep features, whereby principal repayment may be required before maturity if the
portfolio company achieves certain defined operating targets. Additionally, our debt investments typically have principal prepayment penalties in the early years of the loan. Substantially all of our debt investments provide for a fixed interest
rate.

Equity Securities. Our equity securities typically consist of either a direct minority equity investment in common or
preferred stock or membership/partnership interests of a portfolio company, or we may receive warrants to buy a minority equity interest in a portfolio company in connection with a debt investment. Warrants we receive with our debt investments
typically require only a nominal cost to exercise, and thus, as a portfolio company appreciates in value, we may achieve additional investment return from this equity interest. Our equity investments are typically not control-oriented investments,
and in many cases, we acquire equity securities as part of a group of private equity investors in which we are not the lead investor. We may structure such equity investments to include provisions protecting our rights as a minority-interest holder,
as well as a put, or right to sell such securities back to the issuer, upon the occurrence of specified events. In many cases, we may also seek to obtain registration rights in connection with these equity interests, which may include
demand and piggyback registration rights. Our equity investments typically are made in connection with debt investments to the same portfolio companies.

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



Portfolio Composition, Investment Activity and Yield

During the three months ended March 31, 2018, we invested $60.9 million in debt and equity investments, including five new portfolio
companies. These investments consisted of second lien debt ($51.5 million, or 84.6%), subordinated debt ($5.6 million, or 9.2%) and equity securities ($3.8 million, or 6.2%). During the three months ended March 31, 2018 we
received proceeds from sales or repayments, including principal, return of capital dividends and net realized gains (losses), of $36.1 million.

During the three months ended March 31, 2017, we invested $55.0 million in debt and equity investments, including three new
portfolio companies. These investments consisted of second lien debt ($37.6 million, or 68.3%), subordinated debt ($12.8 million, or 23.3%), first lien debt ($0.5 million, or 0.9%), equity securities ($4.0 million, or 7.3%) and
warrant securities ($0.1 million, or 0.2%). During the three months ended March 31, 2017 we received proceeds from sales or repayments, including principal, return of capital dividends and net realized gains (losses), of
$47.7 million.

As of March 31, 2018, the fair value of our investment portfolio totaled $632.2 million and consisted of 63
active portfolio companies and three portfolio companies that have sold their underlying operations. As of March 31, 2018, three debt investments bore interest at a variable rate, which represented $26.2 million of our portfolio on a fair
value basis, and the remainder of our debt portfolio was comprised of fixed rate investments. Overall, the portfolio had net unrealized appreciation of $20.6 million as of March 31, 2018. As of March 31, 2018, our average active
portfolio company investment at amortized cost was $9.7 million, which excludes investments in the three portfolio companies that have sold their underlying operations.

As of December 31, 2017, the fair value of our investment portfolio totaled $596.3 million and consisted of 60 active portfolio
companies and three portfolio companies that have sold their underlying operations. As of December 31, 2017, three debt investments bore interest at a variable rate, which represented $26.1 million of our portfolio on a fair value basis,
and the remainder of our debt portfolio was comprised of fixed rate investments. Overall, the portfolio had net unrealized appreciation of $18.5 million as of December 31, 2017. As of December 31, 2017, our average active portfolio
company investment at amortized cost was $9.6 million, which excludes investments in the three portfolio companies that have sold their underlying operations.



40



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The weighted average yield on debt investments as of March 31, 2018 and December 31,
2017 was 12.7% and 13.0%, respectively. The weighted average yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before the
payment of all of our and our subsidiaries fees and expenses. The weighted average yields were computed using the effective interest rates for debt investments at cost as of March 31, 2018 and December 31, 2017, respectively,
including the accretion of OID and loan origination fees, but excluding investments on non-accrual status, if any.

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



|                  |  |               |       |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |       |  |  |  |       |   |  |   |       |  |  |  |       |  
|----------------- |  | ------------- | ----- |  | ---------------- |  | ----- | ------------- |  | - | ---------------- |  |  |  | ----- | - |  | - | ----- |  |  |  | ----- | - |  | - | ----- |  |  |  | ----- | -
|                  |  | Fair Value    |       |  | Cost             | 
|                  |  | March 31,2018 |       |  | December 31,2017 |  |       | March 31,2018 |  |   | December 31,2017 | 
|Second Lien Debt  |  | $             | 377.4 |  |                  |  | 59.6  | %             |  | $ | 341.3            |  |  |  | 57.3  | % |  | $ | 399.5 |  |  |  | 65.2  | % |  | $ | 357.6 |  |  |  | 62.0  | %
|Subordinated Debt |  |               | 114.9 |  |                  |  | 18.2  |               |  |   | 126.5            |  |  |  | 21.2  |   |  |   | 115.4 |  |  |  | 18.9  |   |  |   | 126.5 |  |  |  | 21.9  |  
|First Lien Debt   |  |               | 29.6  |  |                  |  | 4.7   |               |  |   | 28.8             |  |  |  | 4.8   |   |  |   | 31.6  |  |  |  | 5.2   |   |  |   | 31.9  |  |  |  | 5.5   |  
|Equity            |  |               | 96.0  |  |                  |  | 15.2  |               |  |   | 84.6             |  |  |  | 14.2  |   |  |   | 57.2  |  |  |  | 9.4   |   |  |   | 53.9  |  |  |  | 9.3   |  
|Warrants          |  |               | 14.3  |  |                  |  | 2.3   |               |  |   | 15.1             |  |  |  | 2.5   |   |  |   | 7.7   |  |  |  | 1.3   |   |  |   | 7.7   |  |  |  | 1.3   |  
|Royalty rights    |  |               |      |  |                  |  |      |               |  |   |                 |  |  |  |      |   |  |   | 0.2   |  |  |  |      |   |  |   | 0.2   |  |  |  |      |  
|                  |  |               |       |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |       |  |  |  |       |   |  |   |       |  |  |  |       |  
|Total             |  | $             | 632.2 |  |                  |  | 100.0 | %             |  | $ | 596.3            |  |  |  | 100.0 | % |  | $ | 611.6 |  |  |  | 100.0 | % |  | $ | 577.8 |  |  |  | 100.0 | %
|                  |  |               |       |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |       |  |  |  |       |   |  |   |       |  |  |  |       |  

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



|          |  |               |       |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |       |  |  |  |       |   |  |   |       |  |  |  |       |  
|--------- |  | ------------- | ----- |  | ---------------- |  | ----- | ------------- |  | - | ---------------- |  |  |  | ----- | - |  | - | ----- |  |  |  | ----- | - |  | - | ----- |  |  |  | ----- | -
|          |  | Fair Value    |       |  | Cost             | 
|          |  | March 31,2018 |       |  | December 31,2017 |  |       | March 31,2018 |  |   | December 31,2017 | 
|Midwest   |  | $             | 173.9 |  |                  |  | 27.5  | %             |  | $ | 168.0            |  |  |  | 28.2  | % |  | $ | 167.0 |  |  |  | 27.3  | % |  | $ | 161.8 |  |  |  | 28.1  | %
|Southeast |  |               | 159.0 |  |                  |  | 25.1  |               |  |   | 130.2            |  |  |  | 21.8  |   |  |   | 148.8 |  |  |  | 24.3  |   |  |   | 130.7 |  |  |  | 22.6  |  
|Northeast |  |               | 99.6  |  |                  |  | 15.8  |               |  |   | 107.8            |  |  |  | 18.1  |   |  |   | 104.9 |  |  |  | 17.2  |   |  |   | 105.3 |  |  |  | 18.2  |  
|West      |  |               | 62.4  |  |                  |  | 9.9   |               |  |   | 63.4             |  |  |  | 10.6  |   |  |   | 54.0  |  |  |  | 8.8   |   |  |   | 54.0  |  |  |  | 9.3   |  
|Southwest |  |               | 137.3 |  |                  |  | 21.7  |               |  |   | 126.9            |  |  |  | 21.3  |   |  |   | 136.9 |  |  |  | 22.4  |   |  |   | 126.0 |  |  |  | 21.8  |  
|          |  |               |       |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |       |  |  |  |       |   |  |   |       |  |  |  |       |  
|Total     |  | $             | 632.2 |  |                  |  | 100.0 | %             |  | $ | 596.3            |  |  |  | 100.0 | % |  | $ | 611.6 |  |  |  | 100.0 | % |  | $ | 577.8 |  |  |  | 100.0 | %
|          |  |               |       |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |       |  |  |  |       |   |  |   |       |  |  |  |       |  



41



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



|                                  |  |               |       |   |                  |  |       |               |  |  |                  |   |  |  |       |  
|--------------------------------- |  | ------------- | ----- | - | ---------------- |  | ----- | ------------- |  |  | ---------------- | - |  |  | ----- | -
|                                  |  | Fair Value    |       |   | Cost             | 
|                                  |  | March 31,2018 |       |   | December 31,2017 |  |       | March 31,2018 |  |  | December 31,2017 |  
|Information Technology Services   |  |               | 10.1  | % |                  |  | 10.7  | %             |  |  | 10.2             | % |  |  | 11.0  | %
|Specialty Distribution            |  |               | 10.0  |   |                  |  | 6.2   |               |  |  | 10.0             |   |  |  | 6.2   |  
|Healthcare Services               |  |               | 8.8   |   |                  |  | 10.8  |               |  |  | 7.9              |   |  |  | 9.9   |  
|Component Manufacturing           |  |               | 7.8   |   |                  |  | 6.6   |               |  |  | 8.4              |   |  |  | 7.0   |  
|Business Services                 |  |               | 7.1   |   |                  |  | 6.5   |               |  |  | 8.0              |   |  |  | 7.3   |  
|Transportation Services           |  |               | 6.8   |   |                  |  | 7.1   |               |  |  | 6.9              |   |  |  | 7.3   |  
|Healthcare Products               |  |               | 6.2   |   |                  |  | 7.3   |               |  |  | 6.7              |   |  |  | 7.1   |  
|Oil & Gas Services                |  |               | 5.5   |   |                  |  | 4.7   |               |  |  | 2.3              |   |  |  | 2.7   |  
|Vending Equipment Manufacturing   |  |               | 5.3   |   |                  |  | 5.7   |               |  |  | 5.6              |   |  |  | 5.9   |  
|Building Products Manufacturing   |  |               | 5.0   |   |                  |  | 5.1   |               |  |  | 5.1              |   |  |  | 5.4   |  
|Industrial Cleaning & Coatings    |  |               | 4.1   |   |                  |  | 4.3   |               |  |  | 4.3              |   |  |  | 4.6   |  
|Aerospace & Defense Manufacturing |  |               | 4.0   |   |                  |  | 4.4   |               |  |  | 4.1              |   |  |  | 4.3   |  
|Capital Equipment Manufacturing   |  |               | 3.7   |   |                  |  | 3.4   |               |  |  | 3.8              |   |  |  | 3.4   |  
|Promotional Products              |  |               | 2.8   |   |                  |  | 3.0   |               |  |  | 2.8              |   |  |  | 2.9   |  
|Utility Equipment Manufacturing   |  |               | 2.6   |   |                  |  | 2.6   |               |  |  | 2.6              |   |  |  | 2.8   |  
|Retail                            |  |               | 2.5   |   |                  |  | 2.8   |               |  |  | 2.6              |   |  |  | 2.9   |  
|Consumer Products                 |  |               | 2.4   |   |                  |  | 3.3   |               |  |  | 2.5              |   |  |  | 2.7   |  
|Utilities: Services               |  |               | 1.5   |   |                  |  | 1.6   |               |  |  | 1.6              |   |  |  | 1.7   |  
|Oil & Gas Distribution            |  |               | 1.0   |   |                  |  | 1.0   |               |  |  | 1.0              |   |  |  | 1.0   |  
|Apparel Distribution              |  |               | 0.8   |   |                  |  | 0.9   |               |  |  | 0.9              |   |  |  | 1.0   |  
|Laundry Services                  |  |               | 0.7   |   |                  |  | 0.7   |               |  |  | 0.6              |   |  |  | 0.7   |  
|Electronic Components Supplier    |  |               | 0.6   |   |                  |  | 0.6   |               |  |  | 0.2              |   |  |  | 0.2   |  
|Restaurants                       |  |               | 0.3   |   |                  |  | 0.4   |               |  |  | 1.6              |   |  |  | 1.7   |  
|Specialty Chemicals               |  |               | 0.3   |   |                  |  | 0.2   |               |  |  | 0.2              |   |  |  | 0.2   |  
|Packaging                         |  |               | 0.1   |   |                  |  | 0.1   |               |  |  | 0.1              |   |  |  | 0.1   |  
|Safety Products Manufacturing     |  |               | 0.0   |   |                  |  | 0.0   |               |  |  | 0.0              |   |  |  | 0.0   |  
|                                  |  |               |       |   |                  |  |       |               |  |  |                  |   |  |  |       |  
|Total                             |  |               | 100.0 | % |                  |  | 100.0 | %             |  |  | 100.0            | % |  |  | 100.0 | %
|                                  |  |               |       |   |                  |  |       |               |  |  |                  |   |  |  |       |  

Portfolio Asset Quality

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



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



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



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



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



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



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##### Table of Contents

The following table shows the distribution of our investments on the 1 to 5 investment rating
scale at fair value and cost as of March 31, 2018 and December 31, 2017 (dollars in millions):



|                  |  |               |       |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |       |  |  |  |       |   |  |   |       |  |  |  |       |  
|----------------- |  | ------------- | ----- |  | ---------------- |  | ----- | ------------- |  | - | ---------------- |  |  |  | ----- | - |  | - | ----- |  |  |  | ----- | - |  | - | ----- |  |  |  | ----- | -
|                  |  | Fair Value    |       |  | Cost             | 
|Investment Rating |  | March 31,2018 |       |  | December 31,2017 |  |       | March 31,2018 |  |   | December 31,2017 | 
|1                 |  | $             | 113.7 |  |                  |  | 17.9  | %             |  | $ | 125.7            |  |  |  | 21.1  | % |  | $ | 66.0  |  |  |  | 10.8  | % |  | $ | 83.2  |  |  |  | 14.4  | %
|2                 |  |               | 409.2 |  |                  |  | 64.7  |               |  |   | 398.4            |  |  |  | 66.8  |   |  |   | 401.7 |  |  |  | 65.7  |   |  |   | 393.6 |  |  |  | 68.1  |  
|3                 |  |               | 92.7  |  |                  |  | 14.7  |               |  |   | 51.8             |  |  |  | 8.7   |   |  |   | 102.3 |  |  |  | 16.7  |   |  |   | 60.7  |  |  |  | 10.5  |  
|4                 |  |               | 14.3  |  |                  |  | 2.3   |               |  |   | 18.3             |  |  |  | 3.1   |   |  |   | 19.1  |  |  |  | 3.1   |   |  |   | 28.3  |  |  |  | 4.9   |  
|5                 |  |               | 2.3   |  |                  |  | 0.4   |               |  |   | 2.1              |  |  |  | 0.3   |   |  |   | 22.5  |  |  |  | 3.7   |   |  |   | 12.0  |  |  |  | 2.1   |  
|                  |  |               |       |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |       |  |  |  |       |   |  |   |       |  |  |  |       |  
|Total             |  | $             | 632.2 |  |                  |  | 100.0 | %             |  | $ | 596.3            |  |  |  | 100.0 | % |  | $ | 611.6 |  |  |  | 100.0 | % |  | $ | 577.8 |  |  |  | 100.0 | %
|                  |  |               |       |  |                  |  |       |               |  |   |                  |  |  |  |       |   |  |   |       |  |  |  |       |   |  |   |       |  |  |  |       |  

Based on our investment rating system, the weighted average rating of our portfolio as of March 31, 2018
and December 31, 2017 was 2.0 and 1.9, respectively, on a fair value basis and 2.2 and 2.1, respectively, on a cost basis.

Non-Accrual

As of March 31, 2018 and December 31, 2017, we had investments in two
portfolio companies on non-accrual status (dollars in millions):



|                                |  |                |     |  |                   |   |      |           |  |   |      |  |  |   |      | 
|------------------------------- |  | -------------- | --- |  | ----------------- | - | ---- | --------- |  | - | ---- |  |  | - | ---- | 
|                                |  | March 31, 2018 |     |  | December 31, 2017 |  
|Portfolio Company               |  | FairValue      |     |  | Cost              |   |      | FairValue |  |   | Cost | 
|Restaurant Finance Co, LLC      |  | $              | 2.0 |  |                   | $ | 9.3  |           |  | $ | 2.1  |  |  | $ | 9.3  | 
|Six Month Smiles Holdings, Inc. |  |                |    |  |                   |   | 9.4  |           |  |   | 5.0  |  |  |   | 9.4  | 
|                                |  |                |     |  |                   |   |      |           |  |   |      |  |  |   |      | 
|Total                           |  | $              | 2.0 |  |                   | $ | 18.7 |           |  | $ | 7.1  |  |  | $ | 18.7 | 
|                                |  |                |     |  |                   |   |      |           |  |   |      |  |  |   |      | 

For the three months ended March 31, 2018 and 2017, we recognized unrealized depreciation on non-accrual investments of $5.1 million and $0.3 million, respectively.

Discussion and Analysis of Results
of Operations

Comparison of three months ended March 31, 2018 and 2017

Investment Income

Below
is a summary of the changes in total investment income for the three months ended March 31, 2018 as compared to the same period in 2017 (dollars in millions, percent change calculated based on underlying dollar amounts in thousands):



|                                        |  |                              |      |  |      |   |      |          |  |   |          |   |  |  |       |   
|--------------------------------------- |  | ---------------------------- | ---- |  | ---- | - | ---- | -------- |  | - | -------- | - |  |  | ----- | --
|                                        |  | Three Months Ended March 31, |      |  |      |  
|                                        |  | 2018                         |      |  | 2017 |   |      | $ Change |  |   | % Change |  
|Interest income                         |  | $                            | 14.7 |  |      | $ | 13.0 |          |  | $ | 1.7      |   |  |  | 12.6  | % 
|Payment-in-kind
interest income         |  |                              | 1.7  |  |      |   | 1.7  |          |  |   |         |   |  |  | 1.2   | % 
|Dividend income                         |  |                              | 0.4  |  |      |   | 0.7  |          |  |   | (0.3     | ) |  |  | (48.6 | %)
|Fee income                              |  |                              | 1.4  |  |      |   | 0.8  |          |  |   | 0.6      |   |  |  | 83.8  | % 
|Interest on idle funds and other income |  |                              |     |  |      |   |     |          |  |   |         |   |  |  | 10.0  | % 
|                                        |  |                              |      |  |      |   |      |          |  |   |          |   |  |  |       |   
|Total investment income                 |  | $                            | 18.2 |  |      | $ | 16.2 |          |  | $ | 2.0      |   |  |  | 12.4  | % 
|                                        |  |                              |      |  |      |   |      |          |  |   |          |   |  |  |       |   

For the three months ended March 31, 2018, total investment income was $18.2 million, an increase of
$2.0 million or 12.4%, from the $16.2 million of total investment income for the three months ended March 31, 2017. As reflected in the table above, the increase is primarily attributable to the following:



| |  |  | $1.7 million increase in interest income resulting from higher average debt investment balances outstanding, partially offset by a small decrease in weighted average debt yield and one additional portfolio company
on non-accrual status, during 2018 as compared to 2017.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | $0.6 million increase in fee income resulting from a higher level of structuring fees earned due to a comparative increase in new investments, as well as an increase in debt investment prepayment fee income, during
2018 as compared to 2017.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | $(0.3) million decrease in dividend income due to decreased levels of distributions received from equity investments and certain prior year dividend tax character true-ups
recognized upon receipt of the relevant tax forms from the underlying portfolio company, during 2018 as compared to 2017.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Expenses

Below is a
summary of the changes in total expenses, including income tax provision, for the three months ended March 31, 2018 as compared to the same period in 2017 (dollars in millions, percent change calculated based on underlying dollar amounts in
thousands):



|                                               |  |                              |      |  |      |   |     |          |  |   |          |  |  |  |         |   
|---------------------------------------------- |  | ---------------------------- | ---- |  | ---- | - | --- | -------- |  | - | -------- |  |  |  | ------- | --
|                                               |  | Three Months Ended March 31, |      |  |      |  
|                                               |  | 2018                         |      |  | 2017 |   |     | $ Change |  |   | % Change | 
|Interest and financing expenses                |  | $                            | 3.1  |  |      | $ | 2.6 |          |  | $ | 0.5      |  |  |  | 19.3    | % 
|Base management fee                            |  |                              | 2.7  |  |      |   | 2.3 |          |  |   | 0.4      |  |  |  | 16.1    | % 
|Incentive fee - income                         |  |                              | 2.2  |  |      |   | 2.0 |          |  |   | 0.2      |  |  |  | 8.9     | % 
|Incentive fee - capital gains                  |  |                              | 1.5  |  |      |   | 0.3 |          |  |   | 1.2      |  |  |  | 356.7   | % 
|Administrative service expenses                |  |                              | 0.4  |  |      |   | 0.4 |          |  |   |         |  |  |  | 13.7    | % 
|Professional fees                              |  |                              | 0.5  |  |      |   | 0.5 |          |  |   |         |  |  |  | 8.7     | % 
|Other general and administrative expenses      |  |                              | 0.3  |  |      |   | 0.2 |          |  |   | 0.1      |  |  |  | 6.1     | % 
|                                               |  |                              |      |  |      |   |     |          |  |   |          |  |  |  |         |   
|Total expenses, before income tax provision    |  |                              | 10.7 |  |      |   | 8.3 |          |  |   | 2.4      |  |  |  | 28.1    | % 
|Income tax provision                           |  |                              | 0.1  |  |      |   |    |          |  |   | 0.1      |  |  |  | (3375.0 | %)
|                                               |  |                              |      |  |      |   |     |          |  |   |          |  |  |  |         |   
|Total expenses, including income tax provision |  | $                            | 10.8 |  |      | $ | 8.3 |          |  | $ | 2.5      |  |  |  | 29.7    | % 
|                                               |  |                              |      |  |      |   |     |          |  |   |          |  |  |  |         |   

For the three months ended March 31, 2018, total expenses, including income tax provision, were
$10.8 million, an increase of $2.5 million or 29.7%, from the $8.3 million of total expenses, including income tax provision, for the three months ended March 31, 2017. As reflected in the table above, the increase is primarily
attributable to the following:



| |  |  | $1.2 million increase in the capital gains incentive fee due to a $6.0 million increase in net gain on investments (net realized gains (losses) plus net change in unrealized appreciation (depreciation) on
investments) during 2018, as compared to the same period in 2017.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | $0.5 million increase in interest and financing expenses due to an increase in average borrowings outstanding during 2018 as compared to 2017.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | $0.4 million increase in base management fee due to higher average total assets during 2018 as compared to 2017.
| | - |  | ----------------------------------------------------------------------------------------------------------------

Net Investment Income

Net investment income decreased by $(0.5) million, or (6.1)%, during the three months ended March 31, 2018 as compared to the same period
in 2017, as a result of the $2.0 million increase in total investment income and offset by the larger increase in total expenses, including income tax provision, of $2.5 million, which was primarily due to a $1.2 million increase in
the capital gains incentive fee accrual.

Net Gain (Loss) on Investments

For the three months ended March 31, 2018, the total net realized gain on investments, before income tax provision on realized gains, was
$7.3 million. Significant realized gains for the three months ended March 31, 2018 are summarized below:



|                                  |  |                                     |  |                                         |     | 
|--------------------------------- |  | ----------------------------------- |  | --------------------------------------- | --- | 
|Portfolio Company                 |  | Realization Event                   |  | Net RealizedGains (Losses)(in millions) |    
|World Wide Packaging, LLC         |  | Exit of portfolio company           |  | $                                       | 6.8 | 
|Malabar International             |  | Escrow distribution                 |  |                                         | 0.2 | 
|Worldwide Express Operations, LLC |  | Distributions tax character true-up |  |                                         | 0.2 | 
|Other                             |  |                                     |  |                                         | 0.1 | 
|                                  |  |                                     |  |                                         |     | 
|Total                             |  |                                     |  | $                                       | 7.3 | 
|                                  |  |                                     |  |                                         |     | 

For the three months ended March 31, 2017, the total net realized gain on investments, before income tax
provision on realized gains, was $6.4 million. Significant realized gains and (losses) for the three months ended March 31, 2017 are summarized below:



|                                  |  |                           |  |                                      |     | 
|--------------------------------- |  | ------------------------- |  | ------------------------------------ | --- | 
|Portfolio Company                 |  | Realization Event         |  | Net RealizedGain (Loss)(in millions) |    
|Worldwide Express Operations, LLC |  | Sale of portfolio company |  | $                                    | 6.4 | 
|                                  |  |                           |  |                                      |     | 
|Total                             |  |                           |  | $                                    | 6.4 | 
|                                  |  |                           |  |                                      |     | 



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During the three months ended March 31, 2018 and 2017, we recorded a net change in
unrealized appreciation (depreciation) on investments attributable to the following:



|                                                     |  |                              |      |   |      |   |      |  
|---------------------------------------------------- |  | ---------------------------- | ---- | - | ---- | - | ---- | -
|                                                     |  | Three Months Ended March 31, |     
|Unrealized Appreciation (Depreciation)               |  | 2018                         |      |   | 2017 |  
|Exit, sale or restructuring of investments           |  | $                            | (4.0 | ) |      | $ | (4.5 | )
|Fair value adjustments to debt investments           |  |                              | (5.2 | ) |      |   | (2.1 | )
|Fair value adjustments to equity investments         |  |                              | 11.3 |   |      |   | 3.2  |  
|                                                     |  |                              |      |   |      |   |      |  
|Net change in unrealized appreciation (depreciation) |  | $                            | 2.1  |   |      | $ | (3.4 | )
|                                                     |  |                              |      |   |      |   |      |  

During the three months ended March 31, 2018 and 2017, we recorded $1.7 million and
$1.4 million of income tax provision from realized gains on investments, respectively.

Net Increase in Net Assets Resulting From
Operations

As a result of these events, our net increase in net assets resulting from operations during the three months ended
March 31, 2018 was $15.0 million, an increase of $5.5 million, or 57.6%, compared to a net increase in net assets resulting from operations of $9.5 million during the three months ended March 31, 2017.

Liquidity and Capital Resources

As of March 31, 2018, we had $32.8 million in cash and cash equivalents and our net assets totaled $398.2 million. We believe
that our current cash and cash equivalents on hand, our Credit Facility and our anticipated cash flows from operations will provide adequate capital resources with which to operate and finance our investment business and make distributions to our
stockholders for at least the next 12 months. We intend to generate additional cash primarily from the future offerings of securities (including the ATM Program) and future borrowings, as well as cash flows from operations, including income earned
from investments in our portfolio companies. On both a short-term and long-term basis, our primary use of funds will be investments in portfolio companies and cash distributions to our stockholders. During the three months ended March 31, 2018,
we repaid $43.8 million of SBA debentures which would have matured during the period March 1, 2019 through September 1, 2021. Our remaining outstanding SBA debentures continue to mature in 2020 and subsequent years through 2028, which
will require repayment on or before the respective maturity dates.

Cash Flows

For the three months ended March 31, 2018, we experienced a net decrease in cash and cash equivalents in the amount of $8.8 million.
During that period, we used $17.8 million of cash for operating activities, which included the funding of $60.9 million of investments, which were offset by proceeds received from sales and repayments of investments of $36.1 million.
During the same period, we received proceeds from the issuances of SBA debentures of $27.0 million and proceeds from the issuance of our Public Notes of $50.0 million, which were partially offset by repayments of SBA debentures of
$43.8 million, net repayments on our Credit Facility of $11.5 million, cash dividends paid to stockholders of $9.6 million, the payment of deferred financing costs of $2.6 million and repurchases of common stock under the Stock
Repurchase Program of $0.6 million.

Capital Resources

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

SBA debentures

The Funds are licensed SBICs, and have the ability to issue debentures guaranteed by the SBA at favorable interest rates. Under the Small
Business Investment Act and the SBA rules applicable to SBICs, an SBIC can have outstanding at any time debentures guaranteed by the SBA in an amount up to twice its regulatory capital. The SBA regulations currently limit the amount that is
available to be borrowed by any SBIC and guaranteed by the SBA to 300.0% of an SBICs regulatory capital or $150.0 million, whichever is less. For three or more SBICs under common control, the maximum amount of outstanding SBA debentures
cannot exceed $350.0 million. SBA debentures have fixed interest rates that approximate prevailing 10-year Treasury Note rates plus a spread and have a maturity of ten years with interest payable
semi-annually. The principal amount of the SBA debentures is



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not required to be paid before maturity but may be pre-paid at any time. As of March 31, 2018, Fund I and Fund II had $64.5 million and
$150.0 million of outstanding SBA debentures, respectively, and neither of the Funds can issue additional SBA debentures. Subject to SBA regulatory requirements and approval of an additional SBIC licensed fund, we may access up to
$135.5 million of additional SBA debentures under the SBIC Debenture Program. For more information on the SBA debentures, please see Note 6 to our consolidated financial statements.

Credit Facility

In June
2014, we entered into the Credit Facility to provide additional funding for our investment and operational activities. On December 29, 2017, we entered into an amendment to the Credit Facility to, among other things, extend the maturity date
from June 16, 2018 to June 16, 2019. The Credit Facility has a commitment of $50.0 million and an accordion feature that allows for an increase in the total commitments up to $75.0 million, subject to certain customary
conditions. The Credit Facility is secured by substantially all of our assets, excluding the assets of the Funds.

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

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

We have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other
customary requirements for similar credit facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the Credit Facility. As of March 31, 2018, we were in compliance with all
covenants of the Credit Facility and there were no borrowings outstanding under the Credit Facility.

Public Notes

On February 2, 2018, we closed the public offering of approximately $43.5 million in aggregate principal amount of our 5.875% notes
due 2023, or the Public Notes. On February 22, 2018, the underwriters exercised their option to purchase an additional $6.5 million in aggregate principal of the Public Notes. The total net proceeds to us from the Public Notes,
including the exercise of the underwriters option, after deducting underwriting discounts of approximately $1.5 million and estimated offering expenses of $0.4 million, were approximately $48.1 million.

The Public Notes will mature on February 1, 2023 and bear interest at a rate of 5.875%. The Public Notes are unsecured obligations and
rank pari passu with our future unsecured indebtedness; effectively subordinated to all of our existing and future secured indebtedness; and structurally subordinated to all existing and future indebtedness and other obligations of any of our
subsidiaries, financing vehicles, or similar facilities we may form in the future, with respect to claims on the assets of any such subsidiaries, financing vehicles, or similar facilities. The Public Notes may be redeemed in whole or in part at any
time or from time to time at our option on or after February 1, 2020. Interest on the Public Notes is payable quarterly on February 1, May 1, August 1 and November 1 of each year. The Public Notes are listed on the NASDAQ
Global Select Market under the trading symbol FDUSL. As of March 31, 2018, the outstanding principal balance of the Public Notes was $50.0 million.

As of March 31, 2018, the weighted average stated interest rates for our SBA debentures and the Public Notes were 3.311% and 5.875%,
respectively. As of March 31, 2018, we did not have any outstanding borrowings under our Credit Facility, and we were subject to a 1.000% fee on the unused portion of our Credit Facility. As of March 31, 2018, the weighted average interest
rate on debt outstanding was 3.796%.

As a BDC, we are generally required to meet a coverage ratio of total assets to total senior
securities, which include borrowings and any preferred stock we may issue in the future, of at least 200.0%. This requirement limits the amount that we may borrow. We have received exemptive relief from the U.S. Securities and Exchange Commission
(SEC) to allow us to exclude any indebtedness guaranteed by the SBA and issued by the Funds from the 200.0% asset coverage requirements, which, in turn, will enable us to fund more investments with debt capital. Recent legislation,
however, modifies the required minimum asset coverage ratio from 200.0% to 150.0%, if certain requirements are met. Under the legislation, we are allowed to increase our leverage capacity if stockholders representing at least a majority of the votes
cast, when a quorum is present, approve a proposal to do so. If we receive stockholder approval, we would be allowed to increase our leverage capacity on the first day after such approval. Alternatively, the legislation allows the majority of our
independent directors to approve an increase in our leverage capacity, and such approval would become effective after the one-year anniversary of such approval.



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As a BDC, we are generally not permitted to issue and sell our common stock at a price below net
asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value per share of our common stock if our board of directors, including
Independent Directors, determines that such sale is in the best interests of us and our stockholders, and if our stockholders approve such sale. On June 15, 2017, our stockholders voted to allow us to sell or otherwise issue common stock at a
price below net asset value per share for a period of one year ending on the earlier of June 15, 2018 or the date of our 2018 Annual Meeting of Stockholders. We expect to present to our stockholders a similar proposal at our 2018 Annual Meeting
of Stockholders. Our stockholders specified that the cumulative number of shares sold in each offering during the one-year period ending on the earlier of June 15, 2018 or the date of our 2018 Annual
Meeting of Stockholders may not exceed 25.0% of our outstanding common stock immediately prior to each such sale.

Stock Repurchase
Program

We have an open market stock repurchase program (the Stock Repurchase Program) under which we may acquire up to
$5.0 million of our outstanding common stock. Under the Stock Repurchase Program, we may, but are not obligated to, repurchase outstanding common stock in the open market from time to time provided that we comply with the prohibitions under our
insider trading policies and the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market value and timing constraints. The timing, manner, price and
amount of any share repurchases will be determined by our management, in its discretion, based upon the evaluation of economic and market conditions, stock price, capital availability, applicable legal and regulatory requirements and other corporate
considerations. On October 30, 2017, the Board extended the Stock Repurchase Program through December 31, 2018, or until the approved dollar amount has been used to repurchase shares. The Stock Repurchase Program does not require us
to repurchase any specific number of shares and the Company cannot assure that any shares will be repurchased under the Stock Repurchase Program. The Stock Repurchase Program may be suspended, extended, modified or discontinued at any time. During
the three months ended March 31, 2018, we repurchased 44,821 shares of common stock on the open market for $0.6 million. We did not make any repurchases of common stock during the three months ended March 31, 2017. Refer to Note 8 to
our consolidated financial statements for additional information concerning stock repurchases.

Critical Accounting Policies and Use of Estimates

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

Valuation of Portfolio Investments

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

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

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



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



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



| |  |  | our board of directors engages one or more independent valuation firm(s) to conduct independent appraisals of a
selection of our portfolio investments for which market quotations are not readily available. Each portfolio company investment is generally appraised by the valuation firm(s) at least once every calendar year and each new portfolio company
investment is appraised at least once in the twelve-month period following the initial investment. In certain instances, we may determine that it is not cost-effective, and as a result it is not in our stockholders best interest, to request
the independent appraisal of certain portfolio company investments. Such instances include, but are not limited to, situations where we determine that the fair value of the portfolio company investment is relatively
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | insignificant to the fair value of the total portfolio. Our board of directors consulted with the independent valuation firm(s) in arriving at our determination of fair value for 18 and 18 of our
portfolio company investments representing 30.5% and 32.0% of the total portfolio investments at fair value (exclusive of new portfolio company investments made during the three months ended March 31, 2018 and December 31, 2017,
respectively) as of March 31, 2018 and December 31, 2017, respectively;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



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

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

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

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

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

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

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



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

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

Revenue Recognition

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

Interest and dividend income. Interest and dividend income are recorded on the accrual basis to the extent that we expect to collect
such amounts. Interest is accrued daily based on the outstanding principal amount and the contractual terms of the debt. Dividend income is recorded as dividends are declared or at the point an obligation exists for the portfolio company to make a
distribution, and is generally recognized when received. Distributions from portfolio companies are evaluated to determine if the distribution is a distribution of earnings or a return of capital. Distributions of earnings are included in dividend
income while a return of capital is recorded as a reduction in the cost basis of the investment. Estimates are adjusted as necessary after the relevant tax forms are received from the portfolio company.

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

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

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

Fee income. All transaction fees earned in connection with our investments are recognized as fee income and are generally non-recurring. Such fees typically include fees for services, including structuring and advisory services, provided to portfolio companies. We recognize income from fees for providing such structuring and advisory
services when the services are rendered or the transactions are completed. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as fee income when earned.

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

Recently Issued Accounting Standards

In
May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09,Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements
inRevenue Recognition (Topic 605). Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. We adopted the ASU effective January 1, 2018. The majority of our income
streams are specifically excluded from the scope of the ASU as they relate to financial instruments that are within the scope of other topics, and in general the impact of adopting the ASU is not material to our consolidated financial position or
disclosures.



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Off-Balance Sheet Arrangements

We may be a party to financial instruments with off-balance sheet risk in the normal course of business
to meet the financial needs of our portfolio companies. We had off-balance sheet arrangements consisting of outstanding commitments to fund various undrawn revolving loans and other credit facilities totaling
$8.5 million and $8.4 million as of March 31, 2018 and December 31, 2017, respectively. Such outstanding commitments are summarized in the following table (dollars in millions):



|                                                        |  |                 |     |  |                    |   |     |                 |  |   |                    |  |  |   |     | 
|------------------------------------------------------- |  | --------------- | --- |  | ------------------ | - | --- | --------------- |  | - | ------------------ |  |  | - | --- | 
|                                                        |  | March 31, 2018  |     |  | December 31, 2017  |  
|Portfolio Company - Investment                          |  | TotalCommitment |     |  | UnfundedCommitment |   |     | TotalCommitment |  |   | UnfundedCommitment | 
|B&B Roadway and Security Solutions, LLC - Common Equity |  | $               | 0.1 |  |                    | $ | 0.1 |                 |  | $ |                   |  |  | $ |    | 
|Mesa Line Services, LLC - Delayed Draw Commitment       |  |                 | 4.0 |  |                    |   | 4.0 |                 |  |   | 4.0                |  |  |   | 4.0 | 
|Oaktree Medical Centre, P.C.  Revolving Loan           |  |                 |    |  |                    |   |    |                 |  |   | 2.5                |  |  |   |    | 
|Rhino Assembly Company, LLC - Delayed Draw Commitment   |  |                 | 1.5 |  |                    |   | 1.5 |                 |  |   | 1.5                |  |  |   | 1.5 | 
|Safety Products Group, LLC - Common Equity              |  |                 | 2.9 |  |                    |   | 2.9 |                 |  |   | 2.9                |  |  |   | 2.9 | 
|                                                        |  |                 |     |  |                    |   |     |                 |  |   |                    |  |  |   |     | 
|Total                                                   |  | $               | 8.5 |  |                    | $ | 8.5 |                 |  | $ | 10.9               |  |  | $ | 8.4 | 
|                                                        |  |                 |     |  |                    |   |     |                 |  |   |                    |  |  |   |     | 

Additional detail for each of the commitments above is provided in the our consolidated schedules of
investments.

Related Party Transactions

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



| |  |  | We have entered into the Investment Advisory Agreement with Fidus Investment Advisors, LLC, as our investment advisor. Pursuant to the agreement our investment advisor manages our day-to-day operating and investing activities. We pay our investment advisor a fee for its services under the Investment Advisory Agreement consisting of two components  a base management fee and
an incentive fee. See Note 5 to our consolidated financial statements.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



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



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

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

While we may
co-invest with investment entities managed by our investment advisor or its affiliates, to the extent permitted by the 1940 Act and the rules and regulations thereunder, the 1940 Act imposes significant limits
on co-investment. The SEC staff has granted us relief sought in an exemptive application that expands our ability to co-invest in portfolio companies with other funds
managed by our investment advisor or its affiliates (Affiliated Funds) in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors,
subject to



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compliance with certain conditions (the Order). Pursuant to the Order, we are permitted to co-invest with our affiliates if a required
majority (as defined in Section 57(o) of the 1940 Act) or our independent directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the
transactions, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching by us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with
the interests of our stockholders and is consistent with our investment objective and strategies.

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

Recent Developments

On April 3, 2018, we invested $7.8 million in subordinated debt and common equity of UBEO, LLC, a premier provider of printer,
copier, and related office equipment sales and services.

On April 12, 2018, we invested $12.0 million in second lien debt,
preferred equity and common equity of Power Grid Components, Inc., a supplier of high quality, mission critical products used in the North American electric power grid.

On April 19, 2018, we exited our debt investment in Allied 100 Group, Inc. We received payment in full of $13.0 million on our
subordinated debt.

On April 30, 2018, the Board declared a regular quarterly dividend of $0.39 per share payable on June 22,
2018 to stockholders of record as of June 8, 2018.



|Item 3. | Quantitative and Qualitative Disclosures About Market Risk.
|------- | -----------------------------------------------------------

We are subject to financial
market risks, including changes in interest rates. Changes in interest rates affect both our cost of funding and the valuation of our investment portfolio. Our risk management systems and procedures are designed to identify and analyze our risk, to
set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs. In the future, our investment income may also be affected by changes
in various interest rates, including LIBOR and prime rates, to the extent of any debt investments that include floating interest rates. As of March 31, 2018 and December 31, 2017, three debt investments, respectively, bore interest at a
variable rate, which represented $26.2 million and $26.1 million of our portfolio on a fair value basis, respectively, and the remainder of our debt portfolio was comprised entirely of fixed rate investments. Assuming that the consolidated
statements of assets and liabilities as of March 31, 2018 and December 31, 2017 were to remain constant, a hypothetical 100 basis point change in interest rates would not have a material effect on our level of interest income from debt
investments. Our pooled SBA debentures and our Public Notes bear interest at fixed rates. Our Credit Facility bears interest, subject to our election, on a per annum basis equal to (i) the alternate base rate plus 2.5% or (ii) the
applicable LIBOR, which varies depending on the period of the borrowing under the Credit Facility, plus 3.5%. The alternate base rate is equal to the greater of (i) prime rate, (ii) the federal funds rate plus 0.5% or (iii) the
three-month LIBOR plus 1.0%.

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



|Item 4. | Controls and Procedures.
|------- | ------------------------

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we
file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms and that such information is accumulated and communicated to our management, including our
Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and
operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act) as of the end of the period covered by this report. Based on the evaluation of these disclosure controls and
procedures, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective. It should be noted that any system of controls,



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however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any control system is based in
part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there can be no assurance that any design will succeed in achieving its stated goals under all potential future
conditions, regardless of how remote.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the first quarter of 2018 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.
|------- | ------------------

We are not, and our investment advisor is not, currently subject to
any material legal proceedings.



|Item 1A. | Risk Factors.
|-------- | -------------

In addition to other information set forth in this report, you should
carefully consider the Risk Factors discussed in our Form 10-K for the year ended December 31, 2017 and filed with the SEC on March 1, 2018, which are incorporated herein by reference.
These Risk Factors could materially affect our business, financial condition and/or operating results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business,
financial condition and/or operating results.



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

Sales of Unregistered
Securities

None.

Issuer Purchases of Equity Securities

We have an open market stock repurchase program (the Stock Repurchase Program) under which we may acquire up to $5.0 million
of our outstanding common stock. Under the Stock Repurchase Program, we may, but are not obligated to, repurchase outstanding common stock in the open market from time to time provided that we comply with the prohibitions under our insider trading
policies and the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market value and timing constraints. The timing, manner, price and amount of any share
repurchases will be determined by our management, in its discretion, based upon the evaluation of economic and market conditions, stock price, capital availability, applicable legal and regulatory requirements and other corporate
considerations. On October 30, 2017, the Board extended the Stock Repurchase Program through December 31, 2018, or until the approved dollar amount has been used to repurchase shares. The Stock Repurchase Program does not require us
to repurchase any specific number of shares and the Company cannot assure that any shares will be repurchased under the Stock Repurchase Program. The Stock Repurchase Program may be suspended, extended, modified or discontinued at any time.

During the three months ended March 31, 2018, we repurchased 44,821 shares of common stock on the open market for $0.6 million under
the Stock Repurchase Program. The following table provides information regarding such repurchases of our common stock (dollars in millions, except per share data):



|                                           |  |                                   |        |                    |                            |   |       |                                                                            |  |  |                |  |  |   |     | 
|------------------------------------------ |  | --------------------------------- | ------ | ------------------ | -------------------------- | - | ----- | -------------------------------------------------------------------------- |  |  | -------------- |  |  | - | --- | 
|Period                                     |  | TotalNumber ofSharesPurchased (1) |        |                    | AveragePrice PaidPer Share |   |       | Total Numberof SharesPurchased asPart of PubliclyAnnouncedPlans
orPrograms |  |  | Maximum Number | 
|                                           |  |                                   |        | (or Approximate    |                           
|                                           |  |                                   |        | Dollar Value)      |                           
|                                           |  |                                   |        | of Shares that May |                           
|                                           |  |                                   |        | Yet Be Purchased   |                           
|                                           |  |                                   |        | Under the Stock    |                           
|                                           |  |                                   |        | Repurchase Program |                           
|January 1, 2018 through January 31, 2018   |  |                                   |       |                    |                            | $ |      |                                                                            |  |  |               |  |  | $ | 5.0 | 
|February 1, 2018 through February 28, 2018 |  |                                   |       |                    |                            | $ |      |                                                                            |  |  |               |  |  | $ | 5.0 | 
|March 1, 2018 through March 31, 2018       |  |                                   | 44,821 |                    |                            | $ | 12.94 |                                                                            |  |  | 44,821         |  |  | $ | 4.4 | 
|                                           |  |                                   |        |                    |                            |   |       |                                                                            |  |  |                |  |  |   |     | 
|Total                                      |  |                                   | 44,821 |                    |                            | $ | 12.94 |                                                                            |  |  | 44,821         |  |  |   |     | 
|                                           |  |                                   |        |                    |                            |   |       |                                                                            |  |  |                |  |  |   |     | 



|(1) | Excludes shares purchased on the open market and reissued in order to satisfy the dividend reinvestment plan (DRIP) obligation to deliver shares of common stock in lieu of issuing new shares. During March
2018, we purchased and reissued 16,503 shares of common stock at an average price of $12.97, for a total of $0.2 million.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Refer to Note 8 to our consolidated financial statements for additional information concerning stock repurchases under our Stock Repurchase
Program.





|Item 3. | Defaults Upon Senior Securities.
|------- | --------------------------------

None.



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|Item 4. | Mine Safety Disclosures.
|------- | ------------------------

None.



|Item 5. | Other Information.
|------- | ------------------

None.



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|Item 6. | Exhibits.
|------- | ---------



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



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SIGNATURES

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



|                  |  |  |  |                                                                     
|----------------- |  |  |  | --------------------------------------------------------------------
|                  |  |  |  | FIDUS INVESTMENT CORPORATION                                        
|                  |  | 
|Date: May 3, 2018 |  |  |  | /s/ EDWARD H. ROSS                                                  
|                  |  |  |  | Edward H. Ross                                                      
|                  |  |  |  | Chairman and Chief Executive Officer                                
|                  |  |  |  | (Principal Executive Officer)                                       
|                  |  | 
|Date: May 3, 2018 |  |  |  | /s/ SHELBY E. SHERARD                                               
|                  |  |  |  | Shelby E. Sherard                                                   
|                  |  |  |  | Chief Financial Officer (Principal Financial
and Accounting Officer)



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EXHIBIT INDEX



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



57