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UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
  Washington, D.C.
    20549
  Form 10-K
 (Mark One)þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal
    year ended December 31,
    2010ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission file number
    001-33130
  Triangle Capital
    Corporation
 (Exact name of registrant as
    specified in its charter)
  Maryland(State or other jurisdiction
    of
    incorporation or organization)

06-1798488(I.R.S. Employer
    Identification No.)3700 Glenwood Avenue, Suite 530,
    Raleigh, North Carolina(Address of principal
    executive offices)

27612(Zip Code)   Registrants telephone number, including area code:
 (919) 719-4770
 Securities registered pursuant to Section 12(b) of the
    Act:
  Title of Each Class

Name of Each Exchange on Which RegisteredCommon Stock, par value $0.001 per share

The New York Stock Exchange   Securities registered pursuant to Section 12(g) of the
    Act:
 None
  o þ
  o þ
  þ o
  Regulation S-T o o
  Regulation S-K Form 10-K Form 10-K. o
    Large accelerated filer o

Accelerated filer þ

Non-accelerated filero
    (Do not check if a smaller reporting company)

Smaller reporting company o   Rule 12b-2 o þ
      DOCUMENTS
    INCORPORATED BY REFERENCE
  Form 10-K,




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##### 





TRIANGLE
    CAPITAL CORPORATION
  TABLE OF
    CONTENTS
  ANNUAL
    REPORT ON
    FORM 10-K
    For the Fiscal Year Ended December 31, 2010
   
 PagePART IItem 1.

Business


3Item 1A.

Risk Factors


28Item 1B.

Unresolved Staff Comments


46Item 2.

Properties


46Item 3.

Legal Proceedings


47Item 4.

Removed and Reserved


47PART IIItem 5.

Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


47Item 6.

Selected Financial Data


53Item 7.

Managements Discussion and Analysis of
    Financial Condition and Results of Operations


55Item 7A.

Quantitative and Qualitative Disclosures about
    Market Risk


69Item 8.

Financial Statements and Supplementary Data


69Item 9.

Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


69Item 9A.

Controls and Procedures


69Item 9B.

Other Information


70PART IIIItem 10.

Directors, Executive Officers and Corporate
    Governance


70Item 11.

Executive Compensation


70Item 12.

Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


70Item 13.

Certain Relationships and Related Transactions,
    and Director Independence


71Item 14.

Principal Accountant Fees and Services


71PART IVItem 15.

Exhibits and Financial Statement Schedules


72Signatures


74ExhibitsEX-10.3EX-14.1EX-21.1EX-23.1EX-31.1EX-31.2EX-32.1EX-32.2   1




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FORWARD-LOOKING
    STATEMENTS
  This Annual Report contains forward-looking statements which
    are subject to the safe harbor provisions of the Private
    Securities Litigation Reform Act of 1995. Statements that are
    not historical are forward-looking statements within the meaning
    of Section 27A of the Securities Act of 1933 and
    Section 21E of the Securities Exchange Act of 1934. Some of
    the statements in this Annual Report constitute forward-looking
    statements because they relate to future events or our future
    performance or financial condition. Forward-looking statements
    may include, among other things, statements as to our future
    operating results, our business prospects and the prospects of
    our portfolio companies, the impact of the investments that we
    expect to make, the ability of our portfolio companies to
    achieve their objectives, our expected financings 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. Words such as
    expect, anticipate, target,
    goals, project, intend,
    plan, believe, seek,
    estimate, continue,
    forecast, may, should,
    potential, variations of such words, and similar
    expressions indicate a forward-looking statement, although not
    all forward-looking statements include these words. Readers are
    cautioned that the forward-looking statements contained in this
    Annual Report are only predictions, are not guarantees of future
    performance, and are subject to risks, events, uncertainties and
    assumptions that are difficult to predict. Our actual results
    could differ materially from those implied or expressed in the
    forward-looking statements for any reason, including the factors
    discussed in Item 1A entitled Risk Factors in
    Part I of this Annual Report and elsewhere in this Annual
    Report. Other factors that could cause actual results to differ
    materially include changes in the economy, risks associated with
    possible disruption in our operations or the economy generally
    due to terrorism, and future changes in laws or regulations and
    conditions in our operating areas. These statements are based on
    our current expectations, estimates, forecasts, information and
    projections about the industry in which we operate and the
    beliefs and assumptions of our management as of the date of this
    Annual Report. We assume no obligation to update or revise any
    forward-looking statements, whether as a result of new
    information, future events or otherwise, unless we are required
    to do so by law. Although we undertake no obligation to revise
    or update any forward-looking statements, whether as a result of
    new information, future events or otherwise, you are advised to
    consult any additional disclosures that we may make directly to
    you or through reports that we in the future may file with the
    SEC, including annual reports on
    Form 10-K,
    quarterly reports on
    Form 10-Q
    and current reports on
    Form 8-K.
 2




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PART I  Item 1.
    Business.    
    We acquired 100% of the limited partnership interests in the
    Fund, which became our wholly owned subsidiary, retained its
    license by the United States Small Business Administration (the
    SBA) to operate as an SBIC, continued to hold its
    existing investments and made new investments with the net
    proceeds of the IPO.
    We acquired 100% of the equity interests in TML.    Form 10-K. Form 10-K, Form 10-Q, Form 8-K,
  Overview
    of our Business
     3




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Our
    Business Strategy
    
    Focusing on Underserved Markets.  We believe
    that broad-based consolidation in the financial services
    industry coupled with operating margin and growth pressures have
    caused financial institutions to de-emphasize services to lower
    middle market companies in favor of larger corporate clients and
    capital market transactions. We believe these dynamics have
    resulted in the financing market for lower middle market
    companies to be underserved, providing us with greater
    investment opportunities.
    Providing Customized Financing Solutions.  We
    offer a variety of financing structures and have the flexibility
    to structure our investments to meet the needs of our portfolio
    companies. Typically we invest in senior and subordinated debt
    securities, coupled with equity interests. We believe our
    ability to customize financing arrangements makes us an
    attractive partner to lower middle market companies.
    Leveraging the Experience of Our Management
    Team.  Our senior management team has extensive
    experience advising, investing in, lending to and operating
    companies across changing market cycles. The members of our
    management team have diverse investment backgrounds, with prior
    experience at investment banks, commercial banks, and privately
    and publicly held companies in the capacity of executive
    officers. We believe this diverse experience provides us with an
    in depth understanding of the strategic, financial and
    operational challenges and opportunities of lower middle market
    companies. We believe this understanding allows us to select and
    structure better investments and to efficiently monitor and
    provide managerial assistance to our portfolio companies.
    Applying Rigorous Underwriting Policies and Active Portfolio
    Management.  Our senior management team has
    implemented rigorous underwriting policies that are followed in
    each transaction. These policies include a thorough analysis of
    each potential portfolio companys competitive position,
    financial performance, management team operating discipline,
    growth potential and industry attractiveness, which we believe
    allows us to better assess the companys prospects. After
    investing in a company, we monitor the investment closely,
    typically receiving monthly, quarterly and annual financial
    statements. We analyze and discuss in detail the companys
    financial performance with management in addition to
    participating in regular board of directors meetings. We believe
    that our initial and ongoing portfolio review process allows us
    to monitor effectively the performance and prospects of our
    portfolio companies.
    Taking Advantage of Low Cost Debentures Guaranteed by the
    SBA.  Our license to do business as an SBIC allows
    us to issue fixed-rate, low interest debentures which are
    guaranteed by the SBA and sold in the capital markets,
    potentially allowing us to increase our net interest income
    beyond the levels achievable by other BDCs utilizing traditional
    leverage.
    Maintaining Portfolio Diversification.  While
    we focus our investments in lower middle market companies, we
    seek to invest across various industries. We monitor our
    investment portfolio to ensure we have acceptable industry
    balance, using industry and market metrics as key indicators. By
    monitoring our investment portfolio for industry balance we seek
    to reduce the effects of economic downturns associated with any
    particular industry or market sector. However, we may from time
    to time hold securities of a single portfolio company that
    comprise more than 5.0% of our total assets
    and/or more
    than 10.0% of the outstanding voting securities of the portfolio
    company. For that reason, we are classified as a non-diversified
    management investment company under the 1940 Act. 4




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
    Utilizing Long-Standing Relationships to Source
    Deals.  Our senior management team maintains
    extensive relationships with entrepreneurs, financial sponsors,
    attorneys, accountants, investment bankers, commercial bankers
    and other non-bank providers of capital who refer prospective
    portfolio companies to us. These relationships historically have
    generated significant investment opportunities. We believe that
    our network of relationships will continue to produce attractive
    investment opportunities.  Investments
  Debt
    Investments
      Equity
    Investments
    Investment
    Criteria
   5




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
    Established Companies With Positive Cash
    Flow.  We seek to invest in established companies
    with a history of generating revenues and positive cash flows.
    We typically focus on companies with a history of profitability
    and minimum trailing twelve month EBITDA of $3.0 million.
    We do not invest in
    start-up
    companies, distressed situations, turn-around
    situations or companies that we believe have unproven business
    plans.
    Experienced Management Teams With Meaningful Equity
    Ownership.  Based on our prior investment
    experience, we believe that a management team with significant
    experience with a portfolio company or relevant industry
    experience and meaningful equity ownership is more committed to
    a portfolio company. We believe management teams with these
    attributes are more likely to manage the companies in a manner
    that protects our debt investment and enhances the value of our
    equity investment.
    Strong Competitive Position.  We seek to invest
    in companies that have developed strong positions within their
    respective markets, are well positioned to capitalize on growth
    opportunities and compete in industries with barriers to entry.
    We also seek to invest in companies that exhibit a competitive
    advantage, which may help to protect their market position and
    profitability.
    Varied Customer and Supplier Base.  We prefer
    to invest in companies that have a varied customer and supplier
    base. Companies with a varied customer and supplier base are
    generally better able to endure economic downturns, industry
    consolidation and shifting customer preferences.
    Significant Invested Capital.  We believe the
    existence of significant underlying equity value provides
    important support to investments. We look for portfolio
    companies that we believe have sufficient value beyond the layer
    of the capital structure in which we invest.  Investment
    Committees
        Investment
    Process
    
    Origination
    Due Diligence and Underwriting
    Approval
    Documentation and Closing
    Portfolio Management and Investment Monitoring 6




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Origination
      
    A comprehensive financial model that we prepare based on
    quantitative analysis of historical financial performance,
    financial projections and pro forma financial ratios assuming
    investment;
    Competitive landscape surrounding the potential investment;
    Strengths and weaknesses of the potential investments
    business strategy and industry;
    Results of a broad qualitative analysis of the companys
    products or services, market position, market dynamics and
    customers and suppliers; and
    Potential investment structures, certain financing ratios and
    investment pricing terms.   7




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Due
    Diligence and Underwriting
  on-site
      Approval
    Documentation
    and Closing
    Portfolio
    Management and Investment Monitoring
    
    Monthly and quarterly review of actual financial performance
    versus the corresponding period of the prior year and financial
    projections;
    Monthly and quarterly monitoring of all financial and other
    covenants;
    Review of senior lender loan compliance certificates, where
    applicable; 8




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
    Quarterly review of operating results, and general business
    performance, including the preparation of a portfolio monitoring
    report which is distributed to members of our investment
    committee;
    Periodic
    face-to-face
    meetings with management teams and financial sponsors of
    portfolio companies;
    Attendance at portfolio company board meetings through board
    seats or observation rights; and
    Application of our investment rating system to each investment.    Investment
    Rating System
     9




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InvestmentRating

Description10

Investment is performing above original expectations and
    possibly 30.0% or more above original projections provided by
    the portfolio company. Investment has been positively influenced
    by an unforeseen external event. Full return of principal and
    interest is expected. Capital gain is expected.9

Investment is performing above original expectations and
    possibly 30.0% or more above original projections provided by
    the portfolio company. Investment may have been or is soon to be
    positively influenced by an unforeseen external event. Full
    return of principal and interest is expected. Capital gain is
    expected.8

Investment is performing above original expectations and
    possibly 21.0% to 30.0% above original projections provided by
    the portfolio company. Full return of principal and interest is
    expected. Capital gain is expected.7

Investment is performing above original expectations and
    possibly 11.0% to 20.0% above original projections provided by
    the portfolio company. Full return of principal and interest is
    expected. Depending on age of transaction, potential for capital
    gain exists.6

Investment is performing above original expectations and
    possibly 5.0% to 10.0% above original projections provided by
    the portfolio company. Full return of principal and interest is
    expected. Depending on age of transaction, potential for capital
    gain exists.5

Investment is performing in line with original expectations.
    Full return of principal and interest is expected. Depending on
    age of transaction, potential for capital gain may be expected.4

Investment is performing below original expectations, but no
    covenant defaults have occurred. Full return of principal and
    interest is expected. Potential for capital gain may still be
    expected.3

Investment is in default of transaction covenants but interest
    payments are current. No loss of principal is expected.2

Investment is in default of transaction covenants and interest
    (and possibly principal) payments are not current. A principal
    loss of between 1.0% and 33.0% is expected.1

Investment is in default of transaction covenants and interest
    (and possibly principal) payments are not current. A principal
    loss of between 34.0% and 67.0% is expected.0

Investment is in default and a principal loss of between 68.0%
    and 100.0% is expected.   Valuation
    Process and Determination of Net Asset Value
  Valuation
    Process
  Fair Value Measurements and
    Disclosures
   10




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Level 1
  Level 2
  Level 3
        
    financial standing of the issuer of the security;
    comparison of the business and financial plan of the issuer with
    actual results;
    the size of the security held as it relates to the liquidity of
    the market for such security;
    any pending public offering of common stock by the issuer of the
    security;
    pending reorganization activity affecting the issuer, such as
    merger or debt restructuring;
    ability of the issuer to obtain needed financing;
    changes in the economy affecting the issuer;
    financial statements and reports from portfolio company senior
    management and ownership;
    the type of security, the securitys cost at the date of
    purchase and any contractual restrictions on the disposition of
    the security;
    discount from market value of unrestricted securities of the
    same class at the time of purchase; 11




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
    special reports prepared by analysts;
    information as to any transactions or offers with respect to the
    security
    and/or sales
    to third parties of similar securities;
    the issuers ability to make payments and the type of
    collateral securing the investment;
    the current and forecasted earnings of the issuer;
    statistical ratios compared to lending standards and to other
    similar securities; and
    other pertinent factors.           12




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Quarterly
    Net Asset Value Determination
    Managerial
    Assistance
    Competition
        Brokerage
    Allocation and Other Practices
  and/or
  Dividend
    Reinvestment Plan
   13




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15252-8015, (866) 228-7201.
  15252-8015.
 14




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Employees
    Election
    to be Regulated as a Business Development Company and Regulated
    Investment Company
    
    We report our investments at market value or fair value with
    changes in value reported through our statements of
    operations.  Regulation S-X,
  
    We intend to distribute substantially all of our income to
    our stockholders. We generally will be required to pay income
    taxes only on the portion of our taxable income we do not
    distribute to stockholders (actually or constructively).  source-of-income
   15




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
    Our ability to use leverage as a means of financing our
    portfolio of investments is limited.    
    We are required to comply with the provisions of the 1940 Act
    applicable to business development companies.    Exemptive
    Relief
      Regulation
    of Business Development Companies
     16




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Qualifying
    Assets
                                 17




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Managerial
    Assistance to Portfolio Companies
    Temporary
    Investments
  agreed-upon agreed-upon
  Senior
    Securities
    Code
    of Business Conduct and Ethics and Corporate Governance
    Guidelines
  http://ir.tcap.com/governance.cfm
 18




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Form 8-K.
  Compliance
    Policies and Procedures
    Proxy
    Voting Policies and Procedures
  case-by-case
      Other
        Small
    Business Administration Regulations
    and/or
 19




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Securities
    Exchange Act of 1934 and Sarbanes-Oxley Act Compliance
    
    pursuant to
    Rule 13a-14
    of the Exchange Act, our Chief Executive Officer and Chief
    Financial Officer are required to certify the accuracy of the
    financial statements contained in our periodic reports;
    pursuant to Item 307 of
    Regulation S-K,
    our periodic reports are required to disclose our conclusions
    about the effectiveness of our disclosure controls and
    procedures;
    pursuant to
    Rule 13a-15
    of the Exchange Act, our management is required to prepare a
    report regarding its assessment of our internal control over
    financial reporting, and separately, our independent registered
    public accounting firm audits our internal controls over
    financial reporting; and
    pursuant to Item 308 of
    Regulation S-K
    and
    Rule 13a-15
    of the Exchange Act, our periodic reports must disclose whether
    there were significant changes in our internal control over
    financial reporting or in other factors that could significantly
    affect these controls subsequent to the date of their
    evaluation, including any corrective actions with regard to
    significant deficiencies and material weaknesses.  The New
    York Stock Exchange Corporate Governance Regulations
    Material
    U.S. Federal Income Tax Considerations
  Form 10-K
 21




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
    A citizen or individual resident of the United States;
    A corporation or other entity treated as a corporation, for
    U.S. federal income tax purposes, created or organized in
    or under the laws of the United States or any political
    subdivision thereof;
    A trust if a court within the United States is asked to exercise
    primary supervision over the administration of the trust and one
    or more United States persons have the authority to control all
    substantive decisions of the trust; or
    A trust or an estate, the income of which is subject to
    U.S. federal income taxation regardless of its source.  Non-U.S. stockholder
      Election
    to be Taxed as a Regulated Investment Company
  source-of-income
  Taxation
    as a Regulated Investment Company
     22




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
    continue to qualify as a BDC under the 1940 Act at all times
    during each taxable year;
    derive in each taxable year at least 90.0% of our gross income
    from dividends, interest, payments with respect to certain
    securities and loans, gains from the sale of stock or other
    securities, or other income derived with respect to our business
    of investing in such stock or securities (the 90.0% Income
    Test); and
    diversify our holdings so that at the end of each quarter of the
    taxable year:  
    at least 50.0% of the value of our assets consists of cash, cash
    equivalents, U.S. Government securities, securities of
    other RICs, and other securities if such other securities of any
    one issuer do not represent more than 5.0% of the value of our
    assets or more than 10.0% of the outstanding voting securities
    of the issuer; and
    no more than 25.0% of the value of our assets is invested in the
    securities, other than U.S. government securities or
    securities of other RICs, of one issuer or of two or more
    issuers that are controlled, as determined under applicable
    Internal Revenue Code rules, by us and that are engaged in the
    same or similar or related trades or businesses (the
    Diversification Tests).  and/or
      and/or
 23




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Taxation
    of U.S. Stockholders
         24




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Taxation
    of Non-U.S.
    Stockholders
  Non-U.S. stockholder Non-U.S. stockholder Non-U.S. stockholders
  Non-U.S. stockholders Non-U.S. stockholders (i) U.S.-source Non-U.S. stockholder, Non-U.S. stockholder, Non-U.S. stockholder, Non-U.S. stockholder Non-U.S. stockholder
  Non-U.S. stockholder, Non-U.S. stockholder Non-U.S. stockholder Non-U.S. stockholder
  Non-U.S. stockholder Non-U.S. stockholder Non-U.S. stockholder Non-U.S. stockholder, Non-U.S. stockholder.
  Non-U.S. stockholder
 26




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Non-U.S. stockholder Form W-8BEN Non-U.S. stockholder
    Non-U.S. persons
  Failure
    to Qualify as a Regulated Investment Company
    Available
    Information
  Form 10-Q, Form 8-K
  1-800-SEC-0330.
  http://ir.tcap.com/governance.cfm
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Item 1A.
    Risk
    Factors.  As indicated above in this Annual Report under
    Forward-Looking Statements, those statements in this
    Annual Report that are not historical facts may be
    forward-looking statements within the meaning of the Private
    Securities Litigation Reform Act of 1995. Investing in our
    common stock involves a number of significant risks. The risks
    set out below are not the only risks we face. Additional risks
    and uncertainties not presently known to us or not presently
    deemed material by us might also impair our operations and
    performance. If any of the following events occur, our business,
    financial condition and results of operations could be
    materially and adversely affected. In such case, our net asset
    value and the trading price of our common stock could decline,
    and you may lose all or part of your investment.
  Risks
    Relating to Our Business and Structure
  Our
    financial condition and results of operations will depend on our
    ability to manage and deploy capital effectively.
        Recent
    market conditions have impacted debt and equity capital markets
    in the United States, and we do not know if these conditions
    will improve in the near future.
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Our
    investment portfolio is and will continue to be recorded at fair
    value as determined in good faith by our Board of Directors and,
    as a result, there is and will continue to be uncertainty as to
    the value of our portfolio investments.
      We
    operate in a highly competitive market for investment
    opportunities.
  and/or
 29




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We are
    dependent upon our executives for our future
    success.
    Our
    success depends on attracting and retaining qualified personnel
    in a competitive environment.
      Our
    business model depends to a significant extent upon strong
    referral relationships, and our inability to maintain or develop
    these relationships, as well as the failure of these
    relationships to generate investment opportunities, could
    adversely affect our business.
    We
    have limited operating history as a business development company
    and as a regulated investment company, which may impair your
    ability to assess our prospects.
   30




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Regulations
    governing our operation as a business development company will
    affect our ability to, and the way in which we raise additional
    capital.
    Senior Securities. and/or
  
    Under the provisions of the 1940 Act, we are permitted, as a
    BDC, to issue senior securities only in amounts such that our
    asset coverage, as defined in the 1940 Act, equals at least 200%
    after each issuance of senior securities. If the value of our
    assets declines, we may be unable to satisfy this test. If that
    happens, we may be required to sell a portion of our investments
    and, depending on the nature of our leverage, repay a portion of
    our debt at a time when such sales
    and/or
    repayments may be disadvantageous.
    Any amounts that we use to service our debt or make payments on
    preferred stock will not be available for distributions to our
    common stockholders.
    It is likely that any senior securities or other indebtedness we
    issue will be governed by an indenture or other instrument
    containing covenants restricting our operating flexibility.
    Additionally, some of these securities or other indebtedness may
    be rated by rating agencies, and in obtaining a rating for such
    securities and other indebtedness, we may be required to abide
    by operating and investment guidelines that further restrict
    operating and financial flexibility.
    We and, indirectly, our stockholders will bear the cost of
    issuing and servicing such securities and other indebtedness.
    Preferred stock or any convertible or exchangeable securities
    that we issue in the future may have rights, preferences and
    privileges more favorable than those of our common stock,
    including separate voting rights and could delay or prevent a
    transaction or a change in control to the detriment of the
    holders of our common stock.  Additional Common Stock.
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Recent
    healthcare reform legislation may affect our revenue and
    financial condition.
    The
    impact of recent financial reform legislation on us is
    uncertain.
    Our
    SBIC subsidiaries are licensed by the SBA, and therefore subject
    to SBA regulations.
  and/or
  and/or
  Because
    we borrow money, the potential for gain or loss on amounts
    invested in us is magnified and may increase the risk of
    investing in us.
   32




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SBA
    regulations limit the outstanding dollar amount of
    SBA-guaranteed debentures that may be issued by an SBIC or group
    of SBICs under common control.
       33




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We may
    experience fluctuations in our quarterly results.
    Our
    ability to enter into and exit investment transactions with our
    affiliates will be restricted.
    Our
    Board of Directors may change our operating policies and
    strategies without prior notice or stockholder approval, the
    effects of which may be adverse.
    We
    will be subject to corporate-level U.S. federal income tax
    if we are unable to maintain our status as a regulated
    investment company under Subchapter M of the Code, which will
    adversely affect our results of operations and financial
    condition.
    
    The annual distribution requirement for a RIC will be satisfied
    if we distribute to our stockholders on an annual basis at least
    90.0% of our net ordinary income and net short-term capital gain
    in excess of net long-term capital loss, if any. We will be
    subject to a 4.0% nondeductible U.S. federal excise tax,
    however, to the extent that we do not satisfy certain additional
    minimum distribution requirements on a calendar year basis.
    Because we use debt financing, we are subject to certain asset
    coverage ratio requirements under the 1940 Act and may in the
    future become subject to certain financial covenants under loan
    and credit agreements that could, under certain circumstances,
    restrict us from making distributions necessary to satisfy the
    annual distribution requirement. If we are unable to obtain cash 34




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##### Table of Contents



from other sources, we could fail to qualify for RIC tax
    treatment and thus become subject to
    corporate-level U.S. federal income tax.  
    The income source requirement will be satisfied if we obtain at
    least 90.0% of our income for each year from distributions,
    interest, gains from the sale of stock or securities or similar
    sources.
    The asset diversification requirement will be satisfied if we
    meet certain asset diversification requirements at the end of
    each quarter of our taxable year. To satisfy this requirement,
    at least 50.0% of the value of our assets must consist of cash,
    cash equivalents, U.S. government securities, securities of
    other RICs, and other acceptable securities; and no more than
    25.0% of the value of our assets can be invested in the
    securities, other than U.S. government securities or
    securities of other RICs, of one issuer, of two or more issuers
    that are controlled, as determined under applicable Code rules,
    by us and that are engaged in the same or similar or related
    trades or businesses or of certain qualified publicly
    traded partnerships. Failure to meet these requirements
    may result in our having to dispose of certain investments
    quickly in order to prevent the loss of RIC status. Because most
    of our investments will be in private companies, and therefore
    will be relatively illiquid, any such dispositions could be made
    at disadvantageous prices and could result in substantial losses.    We may
    not be able to pay you distributions, our distributions may not
    grow over time, and a portion of distributions paid to you may
    be a return of capital.
  year-to-year
    We may
    have difficulty paying our required distributions if we
    recognize income before or without receiving cash representing
    such income.
   35




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##### Table of Contents



and/or
  You
    may receive shares of our common stock as distributions which
    could result in adverse tax consequences to you.
    You
    may have current tax liability on distributions you elect to
    reinvest in our common stock but would not receive cash from
    such distributions to pay such tax liability.
    Our
    SBIC subsidiaries, as SBICs, may be unable to make distributions
    to us that may harm our ability to meet regulated investment
    company requirements, which could result in the imposition of an
    entity-level tax.
   36




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##### Table of Contents



Because
    we intend to distribute substantially all of our income to our
    stockholders to maintain our status as a regulated investment
    company, we will continue to need additional capital to finance
    our growth, and regulations governing our operation as a
    business development company will affect our ability to, and the
    way in which we, raise additional capital.
      Changes
    in laws or regulations governing our operations may adversely
    affect our business or cause us to alter our business
    strategy.
      Efforts
    to comply with the Sarbanes-Oxley Act will involve significant
    expenditures, and non-compliance with the Sarbanes-Oxley Act may
    adversely affect us.
   37




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##### Table of Contents



Risks
    Relating to Our Investments
  Our
    investments in portfolio companies may be risky, and we could
    lose all or part of our investment.
    
    may have limited financial resources to meet future capital
    needs and thus may be unable to grow or meet their obligations
    under their debt instruments that we hold, which may be
    accompanied by a deterioration in the value of any collateral
    and a reduction in the likelihood of us realizing any guarantees
    from subsidiaries or affiliates of our portfolio companies that
    we may have obtained in connection with our investment, as well
    as a corresponding decrease in the value of the equity
    components of our investments;
    may have shorter operating histories, narrower product lines,
    smaller market shares
    and/or more
    significant customer concentration than larger businesses, which
    tend to render them more vulnerable to competitors actions
    and market conditions, as well as general economic downturns;
    are more likely to depend on the management talents and efforts
    of a small group of persons; therefore, the death, disability,
    resignation or termination of one or more of these persons could
    have a material adverse impact on our portfolio company and, in
    turn, on us;
    generally have less predictable operating results, may from time
    to time be parties to litigation, may be engaged in rapidly
    changing businesses with products subject to a substantial risk
    of obsolescence, and may require substantial additional capital
    to support their operations, finance expansion or maintain their
    competitive position; and
    generally have less publicly available information about their
    businesses, operations and financial condition. We rely on the
    ability of our management team and investment professionals to
    obtain adequate information to evaluate the potential returns
    from investing in these companies. If we are unable to uncover
    all material information about these companies, we may not make
    a fully informed investment decision, and may lose all or part
    of our investment.    The
    lack of liquidity in our investments may adversely affect our
    business.
   38




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##### Table of Contents



We are
    a non-diversified investment company within the meaning of the
    1940 Act, and therefore we are not limited with respect to the
    proportion of our assets that may be invested in securities of a
    single issuer.
    We may
    not have the funds or ability to make additional investments in
    our portfolio companies.
    Our
    portfolio companies may incur debt that ranks equally with, or
    senior to, our investments in such companies.
    There
    may be circumstances where our debt investments could be
    subordinated to claims of other creditors or we could be subject
    to lender liability claims.
   39




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##### Table of Contents



Second
    priority liens on collateral securing loans that we make to our
    portfolio companies may be subject to control by senior
    creditors with first priority liens. If there is a default, the
    value of the collateral may not be sufficient to repay in full
    both the first priority creditors and us.
      If we
    do not invest a sufficient portion of our assets in qualifying
    assets, we could fail to qualify as a business development
    company or be precluded from investing according to our current
    business strategy.
  Form 10-K.
    We are
    a non-diversified investment company within the meaning of the
    1940 Act, and therefore we are not limited with respect to the
    proportion of our assets that may be invested in securities of a
    single issuer.
   40




---



##### Table of Contents



We
    generally will not control our portfolio
    companies.
    Economic
    recessions or downturns could impair our portfolio companies and
    harm our operating results.
      and/or
 41




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##### Table of Contents



Our
    financial results may be affected adversely if one or more of
    our portfolio investments defaults on its loans or fails to
    perform as we expect.
        Potential
    writedowns or losses with respect to portfolio investments
    existing and to be made in the future could adversely affect our
    results of operations, cash flows, dividend level, net asset
    value and stock price.
    Any
    unrealized losses we experience on our loan portfolio may be an
    indication of future realized losses, which could reduce our
    income available for distribution.
    Defaults
    by our portfolio companies will harm our operating
    results.
   42




---



##### Table of Contents



Prepayments
    of our debt investments by our portfolio companies could
    adversely impact our results of operations and reduce our return
    on equity.
    Changes
    in interest rates may affect our cost of capital and net
    investment income.
    We may
    not realize gains from our equity investments.
    Risks
    Relating to Our Common Stock
  Shares
    of closed-end investment companies, including business
    development companies, frequently trade at a discount to their
    net asset value.
   43




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##### Table of Contents



Investing
    in our common stock may involve an above average degree of
    risk.
    The
    market price of our common stock may be volatile and fluctuate
    significantly.
    
    significant volatility in the market price and trading volume of
    securities of BDCs or other companies in our sector, which are
    not necessarily related to the operating performance of these
    companies;
    changes in regulatory policies or tax guidelines, particularly
    with respect to RICs, BDCs or SBICs;
    inability to obtain certain exemptive relief from the SEC;
    loss of RIC status or either of our SBIC subsidiaries
    status as an SBIC;
    changes in earnings or variations in operating results;
    changes in the value of our portfolio of investments;
    any shortfall in investment income or net investment income or
    any increase in losses from levels expected by investors or
    securities analysts;
    loss of a major funding source;
    fluctuations in interest rates;
    the operating performance of companies comparable to us;
    departure of our key personnel;
    global or national credit market changes; and
    general economic trends and other external factors.   44




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##### Table of Contents



We may
    be unable to invest a significant portion of the net proceeds
    raised in our recent offerings on acceptable terms, which would
    harm our financial condition and operating
    results.
      Recent
    developments may increase the risks associated with our business
    and an investment in us.
    If, in
    the future, we sell common stock at a discount to our net asset
    value per share, stockholders who do not participate in such
    sale will experience immediate dilution in an amount that may be
    material.
   45




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##### Table of Contents



If a
    substantial number of shares become available for sale and are
    sold in a short period of time, the market price of our common
    stock could decline.
    Provisions
    of the Maryland General Corporation Law and our charter and
    bylaws could deter takeover attempts and have an adverse impact
    on the price of our common stock.
      Terrorist
    attacks, acts of war or national disasters may affect any market
    for our common stock, impact the businesses in which we invest
    and harm our business, operating results and financial
    condition.
    We
    could face losses and potential liability if intrusion, viruses
    or similar disruptions to our technology jeopardize our
    confidential information or that of users of our
    technology.
    Item 1B.
    Unresolved
    Staff Comments.    Item 2.
    Properties.   46




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##### Table of Contents



Item 3.
    Legal
    Proceedings.    Item 4.
    Removed
    and Reserved. PART II  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities.  Common
    Stock and Holders
    High

LowFirst Quarter of 2009

$
12.92


$
5.21Second Quarter of 2009


12.38



7.50Third Quarter of 2009


12.77



10.26Fourth Quarter of 2009


13.28



10.95First Quarter of 2010


14.53



11.45Second Quarter of 2010


16.38



12.16Third Quarter of 2010


16.81



14.06Fourth Quarter of 2010


20.97



15.90     Distributions
    Declared
      Record

PaymentDate Declared

Date

Date

AmountFebruary 13, 2009

February 27, 2009

March 13, 2009


0.05March 11, 2009

March 25, 2009

April 8, 2009


0.40June 16, 2009

July 9, 2009

July 23, 2009


0.40September 23, 2009

October 8, 2009

October 22, 2009


0.41December 1, 2009

December 22, 2009

January 5, 2010


0.41March 11, 2010

March 25, 2010

April 8, 2010


0.41June 1, 2010

June 15, 2010

June 29, 2010


0.41August 25, 2010

September 8, 2010

September 22, 2010


0.41December 1, 2010

December 15, 2010

December 29, 2010


0.42  47




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##### Table of Contents



Form 1099-DIV and/or paid-in-capital
    Years Ended December 31,2010


2009Amount


% of Total


Amount


% of TotalOrdinary income

$
1.61



97.6
%

$
1.62



97.0
%Capital gains


0.04



2.4



0.05



3.0Total reported on tax
    Form 1099-DIV

$
1.65



100.0
%

$
1.67



100.0
%   Form 1099-DIV Form 1099-DIV
  Distribution
    Policy
     48




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##### Table of Contents



15252-8015, (866) 228-7201.
  15252-8015.
  Form 10-K.
 49




---



##### Table of Contents



Securities
    Authorized for Issuance Under our Equity Incentive
    Plan
      Number of SecuritiesNumber of





Remaining AvailableSecurities to be


Weighted-Average


for Future IssuanceIssued Upon


Exercise Price of


Under EquityExercise of Outstanding


Outstanding


Compensation PlansOptions, Warrants


Options, Warrants


(Excluding SecuritiesPlan Category

and Rights


and Rights


Reflected in Column(a)(a)


(b)


(c)Equity compensation plans approved by security holders(1)










516,594
(2)Equity compensation plans not approved by security holders










Total










516,594     (1)
    
    The Amended and Restated Plan is the only equity compensation
    plan currently utilized by the Company.(2)
    
    The Amended and Restated Plan has an aggregate of
    900,000 shares of common stock reserved for issuance.  Sales of
    Unregistered Securities
    Issuer
    Purchases of Equity Securities
   50




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##### Table of Contents



Performance
    Graph
    Comparison
    of Annual Cumulative Total Return(1)
    among Triangle Capital Corporation, the Triangle Capital
    Corporation
    Peer Group Index, the Nasdaq Composite Index and the NYSE
    Composite Index
  
   2/15/07


3/31/07


6/30/07


9/30/07


12/31/07Triangle Capital Corporation



100.00




91.00




95.43




93.44




89.40NASDAQ Composite Index



100.00




98.35




106.30




111.39




109.61NYSE Composite Index



100.00




100.46




107.83




110.15




107.40Triangle Capital Corporation Peer Group Index(2)



100.00




95.40




92.52




93.07




74.99   3/31/08


6/30/08


9/30/08


12/31/08Triangle Capital Corporation



85.94




84.29




90.74




83.45NASDAQ Composite Index



93.84




94.88




84.54




64.90NYSE Composite Index



97.60




96.78




84.70




65.24Triangle Capital Corporation Peer Group Index(2)



76.55




55.04




57.59




13.17  51




---



##### Table of Contents



3/31/09


6/30/09


9/30/09


12/31/09Triangle Capital Corporation



65.96




93.79




109.91




115.08NASDAQ Composite Index



63.01




75.69




87.69




94.16NYSE Composite Index



56.87




68.02




80.07




83.69Triangle Capital Corporation Peer Group Index(2)



10.09




18.80




21.26




19.50   3/31/10


6/30/10


9/30/10


12/31/10Triangle Capital Corporation



137.47




143.29




165.13




203.56NASDAQ Composite Index



99.50




87.71




98.94




110.80NYSE Composite Index



87.22




76.27




86.32




94.90Triangle Capital Corporation Peer Group Index(2)



27.28




25.73




29.94




36.20   (1)
    
    From February 15, 2007, the date our common stock began to
    trade on the Nasdaq Global Market in connection with our initial
    public offering to December 31, 2010.(2)
    
    The Triangle Capital Corporation Peer Group consists of the
    following internally-managed closed-end investment companies
    that have elected to be regulated as BDCs under the 1940 Act:
    American Capital Strategies Ltd., Fifth Street Finance Corp.,
    Harris & Harris Group, Inc., Hercules Technology
    Growth Capital, Inc., Kohlberg Capital Corporation, Main Street
    Capital Corporation and MCG Capital Corporation. In our 2009
    Annual Report on
    Form 10-K,
    the Triangle Capital Corporation Peer Group included Allied
    Capital Corporation, which was acquired by Ares Capital
    Corporation in 2010 and as a result is no longer publicly
    traded. For 2010, we have added Fifth Street Finance Corp. to
    the Triangle Capital Corporation Peer Group as a replacement for
    Allied Capital Corporation. 52




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##### Table of Contents



Item 6.
    Selected
    Financial Data.  Form 10-K, Business Combinations
  Year Ended December 31,2006


2007


2008


2009


2010(Dollars in thousands)Income statement data:Investment income:Total interest, fee and dividend income

$
6,443


$
10,912


$
21,056


$
27,149


$
35,641Interest income from cash and cash equivalent investments


280



1,824



303



613



344Total investment income


6,723



12,736



21,359



27,762



35,985Expenses:Interest expense


1,834



2,073



4,228



6,900



7,350Amortization of deferred financing fees


100



113



255



364



797Management fees


1,589



233











General and administrative expenses


115



3,894



6,254



6,449



7,689Total expenses


3,638



6,313



10,737



13,713



15,836Net investment income


3,085



6,423



10,622



14,049



20,149Net realized gain (loss) on investments 
    Non-Control/Non-Affiliate


6,027



(760
)


(1,393
)


448



(1,623
)Net realized gain (loss) on investments  Affiliate






141











(3,856
)Net realized gain on investments  Control










2,829







Net unrealized appreciation (depreciation) of investments


(415
)


3,061



(4,286
)


(10,310
)


10,941Total net gain (loss) on investments


5,612



2,442



(2,850
)


(9,862
)


5,462Provision for income taxes






(52
)


(133
)


(150
)


(220
)Net increase in net assets resulting from operations

$
8,697


$
8,813


$
7,639


$
4,037


$
25,391Net investment income per share  basic and diluted


N/A


$
0.95


$
1.54


$
1.63


$
1.58Net increase in net assets resulting from operations per
    share  basic and diluted


N/A


$
1.31


$
1.11


$
0.47


$
1.99Net asset value per common share


N/A


$
13.74


$
13.22


$
11.03


$
12.09Dividends declared per common share


N/A


$
0.98


$
1.44


$
1.62


$
1.61Capital gains distributions declared per common share


N/A


$



$



$
0.05


$
0.04   53




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##### Table of Contents



Year Ended December 31,2006


2007


2008


2009


2010(Dollars in thousands)Balance sheet data:Assets:Investments at fair value

$
54,247


$
113,037


$
182,105


$
201,318


$
325,991Cash and cash equivalents


2,556



21,788



27,193



55,200



54,820Interest and fees receivable


135



305



680



677



868Prepaid expenses and other current assets






47



95



287



119Deferred offering costs


1,021















Property and equipment, net






34



48



29



47Deferred financing fees


985



999



3,546



3,540



6,200Total assets

$
58,944


$
136,210


$
213,667


$
261,051


$
388,045Liabilities and partners capital:Accounts payable and accrued liabilities

$
825


$
1,144


$
1,609


$
2,222


$
2,269Interest payable


606



699



1,882



2,334



2,388Distribution / dividends payable


532



2,041



2,767



4,775



Income taxes payable






52



30



59



198Deferred revenue


25



31







75



37Deferred income taxes






1,760



844



577



209SBA-guaranteed debentures payable


31,800



37,010



115,110



121,910



202,465Total liabilities


33,788



42,737



122,242



131,952



207,566Total partners capital / stockholders equity


25,156



93,473



91,425



129,099



180,479Total liabilities and partners capital /
    stockholders equity

$
58,944


$
136,210


$
213,667


$
261,051


$
388,045Other data:Weighted average yield on total investments(1)


13.3
%


12.6
%


13.2
%


13.5
%


13.7
%Number of portfolio companies


19



26



34



37



48Expense ratios (as percentage of average net assets):Operating expenses


8.3
%


4.4
%


6.6
%


6.6
%


5.3
%Interest expense and deferred financing fees


9.5



2.4



4.7



7.4



5.6Total expenses


17.8
%


6.8
%


11.3
%


14.0
%


10.9
%     (1)
    
    Excludes non-accrual debt investments 54




---



##### Table of Contents



Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.  The information in this section contains forward-looking
    statements that involve risks and uncertainties. Please see
    Risk Factors and Special Note Regarding
    Forward-Looking Statements for a discussion of the
    uncertainties, risks and assumptions associated with these
    statements. You should read the following discussion in
    conjunction with the combined financial statements and related
    notes and other financial information appearing elsewhere in
    this Annual Report.
  Form 10-K.
  Overview
    of our Business
         55




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##### Table of Contents



Portfolio
    Composition
      Percentage of





Percentage ofCost


Total Portfolio


Fair Value


Total PortfolioDecember 31, 2010:Subordinated debt, Unitranche and 2nd lien notes

$
279,433,775



86
%

$
270,994,677



83
%Senior debt


8,631,760



3



7,639,159



3Equity shares


29,115,890



9



38,719,699



12Equity warrants


5,985,882



2



7,902,458



2Royalty rights


874,400







734,600



$
324,041,707



100
%

$
325,990,593



100
%December 31, 2009:Subordinated debt, Unitranche and 2nd lien notes

$
179,482,425



86
%

$
166,087,684



83
%Senior debt


11,090,514



5



10,847,886



5Equity shares


15,778,681



8



17,182,500



9Equity warrants


2,715,070



1



6,250,600



3Royalty rights


874,400







949,300



$
209,941,090



100
%

$
201,317,970



100
%   Investment
    Activity
     56




---



##### Table of Contents



Years Ended December 31,2010


2009Fair value of portfolio, beginning of period

$
201,317,970


$
182,105,291New investments


173,581,930



48,475,570Proceeds from sales of investments


(5,433,709
)


(1,888,384
)Loan origination fees received


(3,351,568
)


(952,500
)Principal repayments received


(49,481,126
)


(19,543,314
)Payment in kind interest earned


5,979,858



5,074,819Payment in kind interest payments received


(3,710,551
)


(2,909,804
)Accretion/writeoff of loan discounts


701,268



421,495Accretion of deferred loan origination revenue


1,268,839



663,506Net realized gain (loss) on investments


(5,454,327
)


448,164Net unrealized gain (loss) on investments


10,572,009



(10,576,873
)Fair value of portfolio, end of period

$
325,990,593


$
201,317,970Weighted average yield on debt investments as of end of period(1)


15.1
%


14.7
%Weighted average yield on total investments as of end of
    period(1)


13.7
%


13.5
%Weighted average yield on total investments at end of period


12.9
%


12.5
%     (1)
    
    Excludes non-accrual debt investments.  Non-Accrual
    Assets
    Gerli and
    Company
    Fire
    Sprinkler Systems, Inc.
   57




---



##### Table of Contents



American
    De-Rosa Lamparts, LLC and Hallmark Lighting
    FCL
    Graphics, Inc. 2nd Lien Note
    Wholesale
    Floors, Inc.
   58




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##### Table of Contents



Results
    of Operations
  Comparison
    of year ended December 31, 2010 and December 31,
    2009
  Investment
    Income
    Expenses
    Net
    Investment Income
    Net
    Increase in Net Assets Resulting From Operations
     59




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##### Table of Contents



Comparison
    of year ended December 31, 2009 and December 31,
    2008
  Investment
    Income
    Expenses
    Net
    Investment Income
    Net
    Increase in Net Assets Resulting From Operations
     60




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##### Table of Contents



Liquidity
    and Capital Resources
      Cash
    Flows
        Financing
    Transactions
   61




---



##### Table of Contents



Distributions
    to Stockholders
  source-of-income
      Current
    Market Conditions
   62




---



##### Table of Contents



Critical
    Accounting Policies and Use of Estimates
    Investment
    Valuation
  Fair Value
    Measurements and Disclosures,
    Level 1
  Level 2 
 63




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##### Table of Contents



Level 3
        
    financial standing of the issuer of the security;
    comparison of the business and financial plan of the issuer with
    actual results;
    the size of the security held as it relates to the liquidity of
    the market for such security;
    pending public offering of common stock by the issuer of the
    security;
    pending reorganization activity affecting the issuer, such as
    merger or debt restructuring;
    ability of the issuer to obtain needed financing;
    changes in the economy affecting the issuer;
    financial statements and reports from portfolio company senior
    management and ownership;
    the type of security, the securitys cost at the date of
    purchase and any contractual restrictions on the disposition of
    the security;
    discount from market value of unrestricted securities of the
    same class at the time of purchase;
    special reports prepared by analysts;
    information as to any transactions or offers with respect to the
    security
    and/or sales
    to third parties of similar securities;
    the issuers ability to make payments and the type of
    collateral;
    the current and forecasted earnings of the issuer;
    statistical ratios compared to lending standards and to other
    similar securities; and
    other pertinent factors.   64




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##### Table of Contents



Percent of TotalTotal

Investments atFor the Quarter Ended:

Companies

Fair Value(1)March 31, 2008


6



35
%June 30, 2008


5



18
%September 30, 2008


8



29
%December 31, 2008


8



34
%March 31, 2009


7



26
%June 30, 2009


6



20
%September 30, 2009


7



24
%December 31, 2009


8



40
%March 31, 2010


7



25
%June 30, 2010


8



29
%September 30, 2010


8



26
%December 31, 2010


9



29
%     (1)
    
    Exclusive of the fair value of new investments made during the
    quarter   65




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##### Table of Contents



Revenue
    Recognition
  Interest
    and Dividend Income
  and/or
  Fee
    Income
    Payment
    in Kind Interest (PIK)
    and/or
  Recently
    Issued Accounting Standards
  No. 2010-06, Fair Value Measurements and Disclosures 820-10,
  Off-Balance
    Sheet Arrangements
   66




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##### Table of Contents



Quantitative
    and Qualitative Disclosure About Market Risk
                Related
    Party Transactions
   67




---



##### Table of Contents



Contractual
    Obligations
    2012 to


2014 to


2016 andTotal


2011


2013


2015


ThereafterSBA guaranteed debentures payable

$
202,464,866


$



$



$
9,500,000


$
192,964,866Interest due on SBA guaranteed debentures payable(1)


58,922,193



7,317,093



14,395,178



14,375,485



22,834,437Unused commitments to extend credit(2)


5,100,000



5,100,000











Operating lease payments(3)


883,704



287,805



595,899







Total

$
267,370,763


$
12,704,898


$
14,991,077


$
23,875,485


$
215,799,303     (1)
    
    As of December 31, 2010 we had $63.4 million of
    un-pooled SBA guaranteed debentures payable. Because these
    debentures are un-pooled we do not have a fixed interest rate on
    the debentures at this time. As a result, we have not included
    any estimated interest for the $63.4 million in un-pooled
    debentures as interest due on the SBA guaranteed debentures
    payable in this table.(2)
    
    We have a commitment to extend credit, in the form of loans and
    additional equity contributions, to one of our portfolio
    companies which is undrawn as of December 31, 2010. Since
    this commitment may expire without being drawn upon, the total
    commitment amount does not necessarily represent future cash
    requirements, however we have chosen to present the amount of
    this unused commitment as an obligation in this table.(3)
    
    We lease our corporate office facility under an operating lease
    that terminates on December 31, 2013. We believe that our
    existing facilities will be adequate to meet our needs at least
    through 2011, and that we will be able to obtain additional
    space when, where and as needed on acceptable terms.  Recent
    Developments
             68




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##### Table of Contents



Item 7A.
    Quantitative
    and Qualitative Disclosures About Market Risk.    Item 8.
    Financial
    Statements and Supplementary Data.    Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure.    Item 9A.
    Controls
    and Procedures.  Evaluation
    of Disclosure Controls and Procedures
    Managements
    Report on Internal Control over Financial Reporting
  Rules 13a-15(f) 15d-15(f)
  Internal
    Control  Integrated Framework
 69




---



##### Table of Contents



Form 10-K.
  Changes
    in Internal Control Over Financial Reporting
    Item 9B.
    Other
    Information   PART III  Item 10.
    Directors,
    Executive Officers and Corporate Governance.  http://ir.tcap.com/governance.cfm
      Item 11.
    Executive
    Compensation.    Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters.   70




---



##### Table of Contents



Item 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence.    Item 14.
    Principal
    Accountant Fees and Services.   71




---



##### Table of Contents



PART IV  Item 15.
    Exhibits
    and Financial Statement Schedules.  (a)
    The
    following documents are filed as part of this Report:  (1) Financial Statements
  Triangle Capital Corporation Financial Statements:
 PageReports of Independent Registered Public Accounting Firm


F-1Consolidated Balance Sheets as of December 31, 2010 and
    2009


F-3Consolidated Statements of Operations for the years ended
    December 31, 2010, 2009 and 2008


F-4Consolidated Statements of Changes in Net Assets for the years
    ended December 31, 2010, 2009 and 2008


F-5Consolidated Statements of Cash Flows for the years ended
    December 31, 2010, 2009 and 2008


F-6Consolidated Schedule of Investments as of December 31,
    2010


F-7Consolidated Schedule of Investments as of December 31,
    2009


F-14Notes to Financial Statements


F-19    (2) Financial Statement Schedules
      (3) List of Exhibits
  Regulation S-K,
  Number

Exhibit3
.1

Articles of Amendment and Restatement of the Registrant (Filed
    as Exhibit (a)(3) to the Registrants Registration
    Statement on
    Form N-2/N-5
    (File
    No. 333-138418)
    filed with the Securities and Exchange Commission on
    December 29, 2006 and incorporated herein by reference).3
.2

Second Amended and Restated Bylaws of the Registrant (Filed as
    Exhibit 3.4 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2008 filed with the
    Securities and Exchange Commission on February 25, 2009 and
    incorporated herein by reference).3
.3

Certificate of Limited Partnership of Triangle Mezzanine
    Fund LLLP (Filed as Exhibit (a)(4) to the Registrants
    Registration Statement on
    Form N-2/N-5
    (File
    No. 333-138418)
    filed with the Securities and Exchange Commission on
    February 13, 2007 and incorporated herein by reference).3
.4

Second Amended and Restated Agreement of Limited Partnership of
    Triangle Mezzanine Fund LLLP (Filed as Exhibit 3.4 to
    the Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    November 11, 2007 and incorporated herein by reference).4
.1

Form of Common Stock Certificate (Filed as Exhibit (d) to
    the Registrants Registration Statement on
    Form N-2/N-5
    (File
    No. 333-138418)
    filed with the Securities and Exchange Commission on
    February 15, 2007 and incorporated herein by reference).4
.2

Triangle Capital Corporation Dividend Reinvestment Plan (Filed
    as Exhibit 4.2 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2007 filed with the
    Securities and Exchange Commission on March 12, 2008 and
    incorporated herein by reference).4
.3

Agreement to Furnish Certain Instruments (Filed as
    Exhibit 4.19 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2008 filed with the
    Securities and Exchange Commission on February 25, 2009 and
    incorporated herein by reference). 72




---



##### Table of Contents



Number

Exhibit10
.1

Triangle Capital Corporation Amended and Restated 2007 Equity
    Incentive Plan (Filed as Exhibit 10.1 to the
    Registrants Current Report on
    Form 8-K
    filed with the Securities and Exchange Commission on May 9,
    2008 and incorporated herein by reference).10
.2

Form of Triangle Capital Corporation Non-employee Director
    Restricted Share Award Agreement (Filed as Exhibit 10.2 to
    the Registrants Current Report on
    Form 8-K
    filed with the Securities and Exchange Commission on May 9,
    2008 and incorporated herein by reference).10
.3

Form of Triangle Capital Corporation Executive Officer
    Restricted Share Award Agreement10
.4

Custodian Agreement between the Registrant and U.S. Bank
    National Association (Filed as Exhibit 10.7 to the
    Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2006 filed with the
    Securities and Exchange Commission on March 29, 2007 and
    incorporated herein by reference).10
.5

Amendment to Custody Agreement between the Registrant and U.S.
    Bank National Association dated February 5, 2008 (Filed as
    Exhibit 10.9 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2007 filed with the
    Securities and Exchange Commission on March 12, 2008 and
    incorporated herein by reference).10
.6

Stock Transfer Agency Agreement between Triangle Capital
    Corporation and The Bank of New York (Filed as
    Exhibit 10.11 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2007 filed with the
    Securities and Exchange Commission on March 12, 2008 and
    incorporated herein by reference).10
.7

Office Lease Agreement between 3700 Glenwood LLC and Triangle
    Capital Corporation dated March 27, 2008 (Filed as Exhibit
    (k)(6) to the Registrants Registration Statement on
    Form N-2
    (File No. 333-151930)
    filed with the Securities and Exchange Commission on
    August 13, 2008 and incorporated herein by reference).14
.1

Code of Business Conduct and Ethics.21
.1

List of Subsidiaries.23
.1

Consent of Ernst & Young LLP.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

Chief Executive Officer 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 2002.32
.2

Chief Financial Officer 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.     
    
    Management contract or compensatory plan or arrangement.  (b)
    Exhibits    (c)
    Financial
    Statement Schedules   73




---



##### Table of Contents



SIGNATURES      TRIANGLE CAPITAL CORPORATION
  By:
    /s/  Garland
    S. Tucker, III   Title:
    President, Chief Executive Officer and Chairman of the Board of
    Directors    Signature

Title

Date/s/  Garland
    S. Tucker, IIIGarland
    S. Tucker, III

President, Chief Executive Officer and Chairman of the Board
    (Principal 
    Executive Officer)

March 9, 2011/s/  Steven
    C. LillySteven
    C. Lilly

Chief Financial Officer, Treasurer, Secretary and Director
    (Principal 
    Financial Officer)

March 9, 2011/s/  C.
    Robert Knox, Jr.C.
    Robert Knox, Jr.

Controller (Principal Accounting Officer)

March 9, 2011/s/  Brent
    P. W. BurgessBrent
    P. W. Burgess

Chief Investment Officer and Director

March 9, 2011/s/  W.
    McComb DunwoodyW.
    McComb Dunwoody

Director

March 9, 2011/s/  Mark
    M. GambillMark
    M. Gambill

Director

March 9, 2011/s/  Benjamin
    S. GoldsteinBenjamin
    S. Goldstein

Director

March 9, 2011/s/  Simon
    B. Rich, Jr.Simon
    B. Rich, Jr.

Director

March 9, 2011/s/  Sherwood
    H. Smith, Jr.Sherwood
    H. Smith, Jr.

Director

March 9, 2011  74




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##### Table of Contents



Triangle
    Capital Corporation
  Index to
    Financial Statements
  PageReports of Independent Registered Public
    Accounting Firm


F-1Consolidated Balance Sheets as of
    December 31, 2010 and 2009


F-3Consolidated Statements of Operations for the
    years ended December 31, 2010, 2009 and 2008


F-4Consolidated Statements of Changes in Net Assets
    for the years ended December 31, 2010, 2009 and 2008


F-5Consolidated Statements of Cash Flows for the
    years ended December 31, 2010, 2009 and 2008


F-6Consolidated Schedule of Investments as of
    December 31, 2010


F-7Consolidated Schedule of Investments as of
    December 31, 2009


F-14Notes to Financial Statements


F-19




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm                 F-1




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm
                     F-2




---



##### Table of Contents



Triangle
    Capital Corporation
  Consolidated
    Balance Sheets
  December 31,2010


2009ASSETSInvestments at fair value:Non  Control / Non  Affiliate investments
    (cost of $244,197,828 and $143,239,223 at December 31, 2010
    and 2009, respectively)

$
245,392,144


$
138,281,894Affiliate investments (cost of $60,196,084 and $47,934,280 at
    December 31, 2010 and 2009, respectively)


55,661,878



45,735,905Control investments (cost of $19,647,795 and $18,767,587 at
    December 31, 2010 and 2009, respectively)


24,936,571



17,300,171Total investments at fair value


325,990,593



201,317,970Cash and cash equivalents


54,820,222



55,200,421Interest and fees receivable


867,627



676,961Prepaid expenses and other current assets


119,151



286,790Deferred financing fees


6,200,254



3,540,492Property and equipment, net


47,647



28,666Total assets

$
388,045,494


$
261,051,300LIABILITIESAccounts payable and accrued liabilities

$
2,268,898


$
2,222,177Interest payable


2,388,505



2,333,952Dividends payable






4,774,534Taxes payable


197,979



59,178Deferred revenue


37,500



75,000Deferred income taxes


208,587



577,267SBA guaranteed debentures payable


202,464,866



121,910,000Total liabilities


207,566,335



131,952,108Net AssetsCommon stock, $0.001 par value per share
    (150,000,000 shares authorized, 14,928,987 and
    11,702,511 shares issued and outstanding as of
    December 31, 2010 and 2009, respectively)


14,929



11,703Additional
    paid-in-capital


183,602,755



136,769,259Investment income in excess of distributions


3,365,548



1,070,452Accumulated realized gains (losses) on investments


(8,244,376
)


448,164Net unrealized appreciation (depreciation) of investments


1,740,303



(9,200,386
)Total net assets


180,479,159



129,099,192Total liabilities and net assets

$
388,045,494


$
261,051,300Net asset value per share

$
12.09


$
11.03    F-3




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##### Table of Contents



Triangle
    Capital Corporation
  Consolidated
    Statements of Operations
  Years Ended December 31,2010


2009


2008Investment income:Loan interest, fee and dividend income:Non  Control / Non  Affiliate investments

$
24,187,140


$
16,489,943


$
12,381,411Affiliate investments


4,140,469



4,441,399



3,478,644Control investments


1,333,385



1,142,764



1,434,687Total loan interest, fee and dividend income


29,660,994



22,074,106



17,294,742Paid  in  kind interest income:Non  Control / Non  Affiliate investments


4,449,358



3,114,325



2,657,281Affiliate investments


1,059,069



1,539,776



665,817Control investments


471,431



420,718



438,688Total paid  in  kind interest income


5,979,858



5,074,819



3,761,786Interest income from cash and cash equivalent investments


344,642



613,057



302,970Total investment income


35,985,494



27,761,982



21,359,498Expenses:Interest expense


7,350,012



6,900,591



4,227,851Amortization of deferred financing fees


796,994



363,818



255,273General and administrative expenses


7,689,015



6,448,999



6,254,096Total expenses


15,836,021



13,713,408



10,737,220Net investment income


20,149,473



14,048,574



10,622,278Net realized gain (loss) on investments  Non Control
    / Non  Affiliate


(1,623,104
)


448,164



(1,393,139
)Net realized loss on investment  Affiliate


(3,855,769
)






Net realized gain on investment  Control










2,828,747Net unrealized appreciation (depreciation) of investments


10,940,689



(10,310,194
)


(4,286,375
)Total net gain (loss) on investments before income taxes


5,461,816



(9,862,030
)


(2,850,767
)Provision for taxes


220,740



149,841



133,010Net increase in net assets resulting from operations

$
25,390,549


$
4,036,703


$
7,638,501Net investment income per share  basic and diluted

$
1.58


$
1.63


$
1.54Net increase in net assets resulting from operations per
    share  basic and diluted

$
1.99


$
0.47


$
1.11Dividends declared per common share

$
1.61


$
1.62


$
1.44Capital gains distributions declared per common share

$
0.04


$
0.05



Weighted average number of shares outstanding  basic
    and diluted


12,763,243



8,593,143



6,877,669    F-4




---



##### Table of Contents



Triangle
    Capital Corporation
  Statements
    of Changes in Net Assets
  Investment


Accumulated


NetIncome


Realized


UnrealizedCommon Stock


Additional


in Excess of


Gains


Appreciation


TotalNumber


Par


Paid In


(Less Than)


(Losses) on


(Depreciation)


Netof Shares


Value


Capital


Distributions


Investments


of Investments


AssetsBalance, January 1, 2008


6,803,863


$
6,804


$
86,949,189


$
1,738,797


$
(618,620
)

$
5,396,183


$
93,472,353Net investment income














10,622,278











10,622,278Stock-based compensation










275,311















275,311Realized gain (loss) on investments


















1,435,608



(1,269,437
)


166,171Net unrealized losses on investments






















(3,016,938
)


(3,016,938
)Provision for taxes














(133,010
)










(133,010
)Return of capital and other tax related adjustments










612,399



(151,906
)


(460,493
)






Dividends declared














(9,961,002
)










(9,961,002
)Issuance of restricted stock


113,500



113



(113
)














Balance, December 31, 2008


6,917,363


$
6,917


$
87,836,786


$
2,115,157


$
356,495


$
1,109,808


$
91,425,163Net investment income














14,048,574











14,048,574Stock-based compensation










701,601















701,601Realized gain (loss) on investments


















448,164



(157,316
)


290,848Net unrealized losses on investments






















(10,152,878
)


(10,152,878
)Provision for taxes














(149,841
)










(149,841
)Return of capital and other tax related adjustments










(29,996
)


34,125



(4,129
)






Dividends/distributions declared


80,569



81



999,791



(14,977,563
)


(352,366
)






(14,330,057
)Public offerings of common stock


4,569,000



4,569



47,328,113















47,332,682Issuance of restricted stock


144,812



145



(145
)














Common stock withheld for payroll taxes upon vesting of
    restricted stock


(6,533
)


(6
)


(66,894
)














(66,900
)Forfeiture of restricted stock


(2,700
)


(3
)


3















Balance, December 31, 2009


11,702,511


$
11,703


$
136,769,259


$
1,070,452


$
448,164


$
(9,200,386
)

$
129,099,192Net investment income














20,149,473











20,149,473Stock-based compensation










1,151,576















1,151,576Realized gain (loss) on investments


















(5,478,873
)


6,423,467



944,594Net unrealized gains on investments






















4,517,222



4,517,222Provision for taxes














(220,740
)










(220,740
)Return of capital and other tax related adjustments










(171,918
)


3,385,585



(3,213,667
)






Dividends/distributions declared


332,149



332



4,878,676



(21,019,222
)










(16,140,214
)Public offerings of common stock


2,760,000



2,760



41,210,208















41,212,968Issuance of restricted stock


152,944



153



(153
)














Common stock withheld for payroll taxes upon vesting of
    restricted stock


(18,617
)


(19
)


(234,893
)














(234,912
)Balance, December 31, 2010


14,928,987


$
14,929


$
183,602,755


$
3,365,548


$
(8,244,376
)

$
1,740,303


$
180,479,159    F-5




---



##### Table of Contents





Triangle
    Capital Corporation
  Consolidated
    Statements of Cash Flows
  Years Ended December 31,2010


2009


2008Cash flows from operating activities:Net increase in net assets resulting from operations

$
25,390,549


$
4,036,703


$
7,638,501Adjustments to reconcile net increase in net assets resulting
    from operations to net cash used in operating activities:Purchases of portfolio investments


(173,581,930
)


(48,475,570
)


(93,054,022
)Repayments received/sales of portfolio investments


54,914,835



21,431,698



20,968,397Loan origination and other fees received


3,351,568



952,500



1,686,996Net realized (gain) loss on investments


5,478,873



(448,164
)


(1,435,608
)Net unrealized (appreciation) depreciation on investments


(10,572,009
)


10,576,873



3,516,855Deferred income taxes


(368,680
)


(266,680
)


769,519Paid  in  kind interest accrued, net of
    payments received


(2,269,307
)


(2,165,015
)


(1,783,288
)Amortization of deferred financing fees


796,994



363,818



255,273Accretion of loan origination and other fees


(1,268,839
)


(663,506
)


(515,289
)Accretion of loan discounts


(701,268
)


(421,495
)


(169,548
)Accretion of discount on SBA guaranteed debentures payable


50,948







Depreciation expense


19,554



22,548



16,681Stock-based compensation


1,151,576



701,601



275,311Changes in operating assets and liabilities:Interest and fees receivable


(215,212
)


2,867



(374,669
)Prepaid expenses


167,639



(191,465
)


(47,848
)Accounts payable and accrued liabilities


46,721



613,268



464,687Interest payable


54,553



452,191



1,183,026Deferred revenue


(37,500
)


75,000



Taxes payable


138,801



28,742



(22,162
)Net cash used in operating activities


(97,452,134
)


(13,374,086
)


(60,627,188
)Cash flows from investing activities:Purchases of property and equipment


(38,535
)


(3,194
)


(30,535
)Net cash used in investing activities


(38,535
)


(3,194
)


(30,535
)Cash flows from financing activities:Borrowings under SBA guaranteed debentures payable


102,803,918



6,800,000



78,100,000Repayments of SBA guaranteed debentures payable


(22,300,000
)






Financing fees paid


(3,456,756
)


(358,900
)


(2,801,524
)Proceeds from public stock offerings, net of expenses


41,212,968



47,332,682



Common stock withheld for payroll taxes upon vesting of
    restricted stock


(234,912
)


(66,900
)


Cash dividends paid


(20,466,584
)


(11,970,102
)


(9,235,216
)Cash distributions paid


(448,164
)


(352,366
)


Net cash provided by financing activities


97,110,470



41,384,414



66,063,260Net increase (decrease) in cash and cash equivalents


(380,199
)


28,007,134



5,405,537Cash and cash equivalents, beginning of year


55,200,421



27,193,287



21,787,750Cash and cash equivalents, end of year

$
54,820,222


$
55,200,421


$
27,193,287Supplemental Disclosure of cash flow information:Cash paid for interest

$
7,244,511


$
6,448,400


$
3,044,825Summary of non-cash financing transactions:Dividends declared but not paid

$



$
4,774,534


$
2,766,945    F-6




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
 Consolidated Schedule of Investments
 December 31, 2010
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Non  Control / Non  Affiliate
    Investments:Ambient Air Corporation (AA) and Peaden-Hobbs
    Mechanical, LLC (PHM) (3%)*

Specialty Trade 
    Contractors

Subordinated Note-AA 
    (15% Cash, 3% PIK,
    Due 06/13)

$
4,325,151


$
4,287,109


$
4,287,109Common Stock-PHM
    (128,571 shares)






128,571



68,500Common Stock 
    Warrants-AA
    (455 shares)






142,361



852,0004,325,151



4,558,041



5,207,609Anns House of Nuts, Inc. (5%)*

Trail Mixes and
    Nut Producers

Subordinated Note
    (12% Cash, 1% PIK,
    Due 11/17)


7,009,722



6,603,828



6,603,828Preferred A Units
    (22,368 units)






2,124,957



2,124,957Preferred B Units
    (10,380 units)






986,059



986,059Common Units 
    (190,935 units)






150,000



150,000Common Stock Warrants
    (14,558 shares)






14,558



14,5587,009,722



9,879,402



9,879,402Assurance Operations Corporation (0%)*

Metal Fabrication

Common Stock
    (517 Shares)






516,867



528,900516,867



528,900Botanical Laboratories, Inc. (5%)*

Nutritional Supplement
    Manufacturing and 
    Distribution

Senior Notes
    (14% Cash, 
    Due 02/15)


10,500,000



9,843,861



9,843,861Common Unit 
    Warrants (998,680)






474,600



10,500,000



10,318,461



9,843,861Capital Contractors, Inc. (5%)*

Janitorial and Facilities
    Maintenance Services

Subordinated Notes
    (12% Cash, 2% PIK,
    Due 12/15)


9,001,001



8,329,001



8,329,001Common Stock
    Warrants (20 shares)






492,000



492,0009,001,001



8,821,001



8,821,001Carolina Beer and Beverage, LLC (8%)*

Beverage Manufacturing
    and  Packaging

Subordinated Note
    (12% Cash , 4% PIK, 
    Due 02/16)


12,865,233



12,622,521



12,622,521Class A Units
    (11,974 Units)






1,077,615



1,077,615Class B Units
    (11,974 Units)






119,735



119,73512,865,233



13,819,871



13,819,871 F-7




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated Schedule of
    Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)CRS Reprocessing, LLC (8%)*

Fluid Reprocessing
    Services

Subordinated Note 
    (12% Cash, 2% PIK, 
    Due 11/15)

$
11,129,470


$
10,706,406


$
10,706,406Subordinated Note 
    (10% Cash, 4% PIK, 
    Due 11/15)


3,403,211



3,052,570



3,052,570Common Unit 
    Warrant (340 Units)






564,454



1,043,00014,532,681



14,323,430



14,801,976CV Holdings, LLC (6%)*

Specialty Healthcare
    Products Manufacturer

Subordinated Note
    (12% Cash, 4% PIK, 
    Due 09/13)


11,685,326



11,042,011



11,042,011Royalty rights






874,400



622,50011,685,326



11,916,411



11,664,511Electronic Systems Protection, Inc. (2%)*

Power Protection 
    Systems Manufacturing

Subordinated Note 
    (12% Cash, 
    2% PIK,
    Due 12/15)


3,183,802



3,162,604



3,162,604Senior Note
    (8.3% Cash, 
    Due 01/14)


835,261



835,261



835,261Common Stock
    (570 shares)






285,000



110,0004,019,063



4,282,865



4,107,865Energy Hardware Holdings, LLC (0%)*

Machined Parts 
    Distribution

Voting Units
    (4,833 units)






4,833



414,1004,833



414,100Frozen Specialties, Inc. (4%)*

Frozen Foods
    Manufacturer

Subordinated Note 
    (13% Cash, 
    5% PIK,
    Due 07/14)


8,060,481



7,945,904



7,945,9048,060,481



7,945,904



7,945,904Garden Fresh Restaurant Corp. (0%)*

Restaurant

Membership Units
    (5,000 units)






500,000



723,800500,000



723,800Gerli & Company (1%)*

Specialty Woven
    Fabrics Manufacturer

Subordinated Note
    (0.69% PIK,
    Due 08/11)


3,799,359



3,161,442



2,156,500Subordinated Note 
    (6.25% Cash, 11.75% PIK,
    Due 08/11)


137,233



120,000



120,000Royalty rights










112,100Common Stock Warrants
    (56,559 shares)






83,414



3,936,592



3,364,856



2,388,600Great Expressions Group Holdings, LLC (3%)*

Dental Practice 
    Management

Subordinated Note 
    (12% Cash, 4% PIK,
    Due 08/15)


4,561,311



4,498,589



4,498,589Class A Units (225 Units)






450,000



678,4004,561,311



4,948,589



5,176,989 F-8




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated Schedule of
    Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Grindmaster-Cecilware Corp. (3%)*

Food Services 
    Equipment Manufacturer

Subordinated Note 
    (12% Cash, 4.5% PIK, 
    Due 04/16)

$
5,995,035


$
5,900,500


$
5,900,5005,995,035



5,900,500



5,900,500Hatch Chile Co., LLC (3%)*

Food Products
    Distributer

Senior Note
    (19% Cash,
    Due 07/15)


4,500,000



4,394,652



4,394,652Subordinated Note
    (14% Cash,
    Due 07/15)


1,000,000



837,779



837,779Unit Purchase
    Warrant (5,265 Units)






149,800



149,8005,500,000



5,382,231



5,382,231Infrastructure Corporation of America, Inc. (6%)*

Roadway Maintenance,
    Repair and 
    Engineering Services

Subordinated Note
    (12% Cash, 1% PIK,
    Due 10/15)


10,769,120



9,566,843



9,566,843Common Stock Purchase
    Warrant (199,526 shares)






980,000



980,00010,769,120



10,546,843



10,546,843Inland Pipe Rehabilitation Holding Company LLC (10%)*

Cleaning and
    Repair Services

Subordinated Note
    (14% Cash,
    Due 01/14)


8,274,920



7,621,285



7,621,285Subordinated Note
    (18% Cash,
    Due 01/14)


3,905,108



3,861,073



3,861,073Subordinated Note
    (15% Cash,
    Due 01/14)


306,302



306,302



306,302Subordinated Note
    (15.3% Cash,
    Due 01/14)


3,500,000



3,465,000



3,465,000Membership Interest
    Purchase Warrant (3.0%)






853,500



2,982,60015,986,330



16,107,160



18,236,260Library Systems & Services, LLC (3%)*

Municipal Business 
    Services

Subordinated Note
    (12.5% Cash, 4.5% PIK, 
    Due 06/15)


5,250,000



5,104,255



5,104,255Common Stock Warrants
    (112 shares)






58,995



535,0005,250,000



5,163,250



5,639,255McKenzie Sports Products, LLC (3%)*

Taxidermy 
    Manufacturer

Subordinated Note
    (13% Cash, 1% PIK,
    Due 10/17)


6,010,667



5,893,359



5,893,3596,010,667



5,893,359



5,893,359Media Temple, Inc. (7%)*

Web Hosting Services

Subordinated Note
    (12% Cash, 4% PIK,
    Due 04/15)


8,800,000



8,624,776



8,624,776Convertible Note
    (8% Cash, 4% PIK,
    Due 04/15)


3,200,000



2,668,581



2,668,581Common Stock Purchase Warrant
    (28,000 Shares)






536,000



536,00012,000,000



11,829,357



11,829,357 F-9




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated Schedule of
    Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Minco Technology Labs, LLC (3%)*

Semiconductor 
    Distribution

Subordinated Note
    (13% Cash, 3.25% PIK,
    Due 05/16)

$
5,102,216


$
4,984,368


$
4,984,368Class A Units (5,000 Units)






500,000



296,8005,102,216



5,484,368



5,281,168Novolyte Technologies, Inc. (5%)*

Specialty 
    Manufacturing

Subordinated Note
    (12% Cash, 5.5% PIK,
    Due 04/15)


7,785,733



7,686,662



7,686,662Preferred Units (641 units)






640,818



664,600Common Units (24,522 units)






160,204



370,2007,785,733



8,487,684



8,721,462SRC, Inc. (5%)*

Specialty Chemical 
    Manufacturer

Subordinated Notes
    (12% Cash, 2% PIK,
    Due 09/14)


9,001,000



8,697,200



8,697,200Common Stock Purchase Warrants






123,800



123,8009,001,000



8,821,000



8,821,000Syrgis Holdings, Inc. (2%)*

Specialty Chemical 
    Manufacturer

Senior Notes
    (7.75%-10.75% Cash,
    Due 08/12-02/14)


2,873,393



2,858,198



2,858,198Class C Units (2,114 units)






1,000,000



962,2002,873,393



3,858,198



3,820,398TBG Anesthesia Management, LLC (6%)*

Physician
    Management Services

Senior Note
    (13.5% Cash,
    Due 11/14)


11,000,000



10,612,766



10,612,766Warrant (263 shares)






276,100



165,00011,000,000



10,888,866



10,777,766Top Knobs USA, Inc. (6%)

Hardware Designer 
    and Distributor

Subordinated Note
    (12% Cash, 4.5% PIK,
    Due 05/17)


9,910,331



9,713,331



9,713,331Common Stock (26,593 shares)






750,000



750,0009,910,331



10,463,331



10,463,331TrustHouse Services Group, Inc. (3%)*

Food Management
    Services

Subordinated Note
    (12% Cash, 2% PIK,
    Due 09/15)


4,440,543



4,381,604



4,381,604Class A Units (1,495 units)






475,000



492,900Class B Units (79 units)






25,000



4,440,543



4,881,604



4,874,504Tulsa Inspection Resources, Inc. (3%)*

Pipeline Inspection 
    Services

Subordinated Note
    (14%-17.5% Cash,
    Due 03/14)


5,810,588



5,490,797



5,490,797Common Unit(1 unit)






200,000



Common Stock Warrants (8 shares)






321,000



5,810,588



6,011,797



5,490,797Twin-Star International, Inc. (3%)*

Consumer Home 
    Furnishings Manufacturer

Subordinated Note
    (12% Cash, 1% PIK,
    Due 04/14)


4,500,000



4,462,290



4,462,290Senior Note
    (4.53%,
    Due 04/13)


1,088,962



1,088,962



1,088,9625,588,962



5,551,252



5,551,252 F-10




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated Schedule of
    Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Wholesale Floors, Inc. (1%)*

Commercial Services

Subordinated Note
    (12.5%Cash, 1.5% PIK,
    Due 06/14)

$
3,739,639


$
3,387,525


$
2,632,100Membership Interest 
    Purchase Warrant (4.0%)






132,800



3,739,639



3,520,325



2,632,100Yellowstone Landscape Group, Inc. (7%)*

Landscaping Services

Subordinated Note
    (12% Cash, 3% PIK,
    Due 04/14)


12,438,838



12,250,147



12,250,14712,438,838



12,250,147



12,250,147Zoom Systems (4%)*

Retail Kiosk 
    Operator

Subordinated Note
    (12.5% Cash, 1.5% PIK,
    Due 12/14)


8,125,222



7,956,025



7,956,025Royalty rights










8,125,222



7,956,025



7,956,025Subtotal Non  Control / Non  Affiliate
    Investments






237,824,178



244,197,828



245,392,144Affiliate Investments:American De-Rosa Lamparts, LLC and Hallmark Lighting (2%)*

Wholesale and
    Distribution

Subordinated Note
    (5% PIK,
    Due 10/13)


5,475,141



5,153,341



3,985,700Membership
    Units (6,516 Units)






350,000



5,475,141



5,503,341



3,985,700AP Services, Inc. (4%)*

Fluid Sealing Supplies 
    and Services

Subordinated Note
    (12% Cash, 2% PIK,
    Due 09/15)


5,834,877



5,723,194



5,723,194Class A Units (933 units)






933,333



933,333Class B Units (496 units)










5,834,877



6,656,527



6,656,527Asset Point, LLC (3%)*

Asset Management 
    Software Provider

Senior Note
    (12% Cash, 5% PIK,
    Due 03/13)


5,756,261



5,703,925



5,384,500Senior Note
    (12% Cash, 2% PIK,
    Due 07/15)


605,185



605,185



478,100Options to
    Purchase Membership
    Units (342,407 units)






500,000



Membership Unit
    Warrants
    (356,506 units)










6,361,446



6,809,110



5,862,600Axxiom Manufacturing, Inc. (1%)*

Industrial Equipment
    Manufacturer

Common Stock
    (136,400 shares)






200,000



978,700Common Stock Warrant
    (4,000 shares)










28,700200,000



1,007,400 F-11




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated Schedule of
    Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Brantley Transportation, LLC (Brantley
    Transportation) and Pine Street Holdings, LLC (Pine
    Street)(4)(2%)*

Oil and Gas Services

Subordinated Note  Brantley 
    Transportation
    (14% Cash,
    Due 12/12)

$
3,800,000


$
3,738,821


$
3,546,600Common Unit Warrants  Brantley
    Transportation
    (4,560 common units)






33,600



Preferred Units  Pine Street (200 units)






200,000



Common Unit Warrants--Pine Street
    (2,220 units)










3,800,000



3,972,421



3,546,600Dyson Corporation (1%)*

Custom Forging 
    and Fastener Supplies

Class A Units (1,000,000 units)






1,000,000



2,476,0001,000,000



2,476,000Equisales, LLC (4%)*

Energy Products and Services

Subordinated Note
    (13% Cash, 4% PIK,
    Due 04/12)


6,000,000



5,959,983



5,959,983Class A Units (500,000 units)






480,900



569,3006,000,000



6,440,883



6,529,283Plantation Products, LLC (8%)*

Seed Manufacturing

Subordinated Notes
    (13% Cash, 4.5% PIK,
    Due 06/16)


14,527,188



14,164,688



14,164,688Preferred Units (1,127 units)






1,127,000



1,127,000Common Units (92,000 units)






23,000



23,00014,527,188



15,314,688



15,314,688QC Holdings, Inc.(0%)*

Lab Testing Services

Common Stock
    (5,594 shares)






563,602



505,500563,602



505,500Technology Crops International (3%)*

Supply Chain
    Management Services

Subordinated Note
    (12% Cash, 5% PIK,
    Due 03/15)


5,333,595



5,250,980



5,250,980Common Units (50 Units)






500,000



612,2005,333,595



5,750,980



5,863,180Waste Recyclers Holdings, LLC (2%)*

Environmental 
    and Facilities Services

Class A Preferred Units
    (280 Units)






2,251,100



Class B Preferred Units
    (985,372 Units)






3,304,218



2,384,100Class C Preferred Units 
    (1,444,475 Units)






1,499,531



1,530,300Common Unit Purchase 
    Warrant (1,170,083 Units)






748,900



Common Units (153,219 Units)






180,783



7,984,532



3,914,400Subtotal Affiliate Investments






47,332,247



60,196,084



55,661,878 F-12




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated Schedule of
    Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Control Investments:FCL Graphics, Inc. (1%)*

Commercial Printing 
    Services

Senior Note
    (3.76% Cash, 2% PIK,
    Due 9/11)

$
1,500,498


$
1,497,934


$
1,465,400Senior Note
    (7.79% Cash, 2% PIK,
    Due 9/11)


2,045,228



2,041,167



1,081,1002nd Lien Note
    (2.79% Cash, 8% PIK,
    Due 12/11)


3,470,254



2,996,287



Preferred Shares
    (35,000 shares)










Common Shares 
    (4,000 shares)










Members Interests 
    (3,839 Units)










7,015,980



6,535,388



2,546,500Fire Sprinkler Systems, Inc. (0%)*

Specialty 
    Trade Contractors

Subordinated Notes (2% PIK,
    Due 04/11)


3,065,981



2,626,072



750,000Common Stock (2,978 shares)






294,624



3,065,981



2,920,696



750,000Fischbein, LLC (11%)*

Packaging and
    Materials Handling 
    Equipment Manufacturer

Subordinated Note
    (13% Cash, 5.5% PIK,
    Due 05/13)


4,345,573



4,268,333



4,268,333Class A-1 Common Units
    (558,140 units)






558,140



2,200,600Class A Common Units 
    (4,200,000 units)






4,200,000



13,649,6004,345,573



9,026,473



20,118,533Weave Textiles, LLC (1%)*

Specialty Woven 
    Fabrics Manufacturer

Senior Note
    (12% PIK,
    Due 01/11)


310,238



310,238



310,238Membership Units
    (425 units)






855,000



1,211,300310,238



1,165,238



1,521,538Subtotal Control Investments






14,737,772



19,647,795



24,936,571Total Investments, December 31, 2010(181%)*





$
299,894,197


$
324,041,707


$
325,990,593     *
    
    Value as a percent of net assets(1)
    
    All debt investments are income producing. Common stock,
    preferred stock and all warrants are non  income
    producing.(2)
    
    Disclosures of interest rates on subordinated notes include cash
    interest rates and paid  in  kind
    (PIK) interest rates.(3)
    
    All investments are restricted as to resale and were valued at
    fair value as determined in good faith by the Board of Directors.(4)
    
    Pine Street Holdings, LLC is the majority owner of Brantley
    Transportation, LLC and its sole business purpose is its
    ownership of Brantley Transportation, LLC.   F-13




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated
    Schedule of Investments
 December 31,
    2009
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Non  Control / Non  Affiliate
    Investments:Ambient Air Corporation
    (AA) and Peaden-Hobbs Mechanical, LLC
    (PHM) (5%)*

Specialty Trade Contractors

Subordinated Note-AA
    (12% Cash, 2% PIK, 
    Due 03/11)

$
3,236,386


$
3,173,098


$
3,173,098Subordinated Note-
    AA (14% Cash, 4% PIK, Due 03/11)


1,982,791



1,965,757



1,965,757Common Stock-PHM (128,571 shares)






128,571



106,900Common Stock Warrants-AA (455 shares)






142,361



656,7005,219,177



5,409,787



5,902,455American De-Rosa Lamparts, LLC and Hallmark Lighting (3%)*

Wholesale and Distribution

Subordinated Note
    (11.5% Cash, 3.75% PIK,
    Due 10/13)


8,861,819



8,244,709



3,893,2998,861,819



8,244,709



3,893,299American Direct Marketing Resources, LLC (3%)*

Direct Marketing Services

Subordinated Note
    (12% Cash, 3% PIK, 
    Due 03/15)


4,157,458



4,088,475



4,088,4754,157,458



4,088,475



4,088,475Art Headquarters, LLC (2%)*

Retail, Wholesale and Distribution

Subordinated Note
    (12% Cash, 2% PIK, 
    Due 01/10)


2,116,822



2,116,822



2,116,822Membership unit warrants (15% of units (150 units))






40,800



220,0002,116,822



2,157,622



2,336,822Assurance Operations Corporation (2%)*

Auto Components /Metal Fabrication

Senior Note (6% Cash, 
    Due 06/11)


2,484,000



2,034,000



2,034,000Common Stock (300 shares)






300,000



2,484,000



2,334,000



2,034,000CRS Reprocessing, LLC (2%)*

Fluid Reprocessing Services

Subordinated Note
    (12% Cash, 2% PIK, 
    Due 11/14)


3,005,333



2,929,233



2,929,233Common Unit Warrant 
    (107 Units)






23,600



23,6003,005,333



2,952,833



2,952,833CV Holdings, LLC (9%)*

Specialty Healthcare Products Manufacturer

Subordinated Note
    (12% Cash, 4% PIK, 
    Due 09/13)


11,221,670



10,391,652



10,391,652Royalty rights






874,400



949,30011,221,670



11,266,052



11,340,952Electronic Systems Protection, Inc. (3%)*

Power Protection Systems Manufacturing

Subordinated Note
    (12% Cash, 2% PIK, 
    Due 12/15)


3,120,913



3,096,783



2,869,000Senior Note (8.3% Cash, 
    Due 01/14)


895,953



895,953



895,953Common Stock (500 shares)






285,000



31,3004,016,866



4,277,736



3,796,253 F-14




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated
    Schedule of Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Energy Hardware Holdings, LLC (0%)*

Machined Parts Distribution

Voting Units (4,833 units)





$
4,833


$
572,3004,833



572,300Fire Sprinkler Systems, Inc. (1%)*

Specialty Trade Contractors

Subordinated Notes
    (11%-12.5% PIK, Due 04/11)


2,765,917



2,369,744



750,000Common Stock (295 shares)






294,624



2,765,917



2,664,368



750,000Frozen Specialties, Inc. (6%)*

Frozen Foods Manufacturer

Subordinated Note
    (13% Cash, 5% PIK, 
    Due 07/14)


7,662,863



7,523,924



7,523,9247,662,863



7,523,924



7,523,924Garden Fresh Restaurant Corp. (3%)*

Restaurant

2nd Lien Note (7.8% Cash, Due 12/11)


3,000,000



3,000,000



3,000,000Membership Units (5,000 units)






500,000



811,3003,000,000



3,500,000



3,811,300Gerli & Company (1%)*

Specialty Woven Fabrics Manufacturer

Subordinated Note
    (0.69% PIK, Due 08/11)


3,630,774



3,124,893



1,442,000Subordinated Note
    (6.25% Cash, 11.75% PIK, Due 08/11)


122,389



120,000



120,000Common Stock Warrants (56,559 shares)






83,414



3,753,163



3,328,307



1,562,000Grindmaster-Cecilware Corp. (4%)*

Food Services Equipment Manufacturer

Subordinated Note
    (11% Cash, 3% PIK, 
    Due 03/15)


5,800,791



5,689,665



5,689,6655,800,791



5,689,665



5,689,665Inland Pipe Rehabilitation Holding
    Company LLC (11%)*

Cleaning and Repair Services

Subordinated Note
    (14% Cash, Due 01/14)


8,108,641



7,279,341



7,279,341Subordinated Note
    (18% Cash, Due 01/14)


3,750,000



3,699,679



3,699,679Membership Interest Purchase Warrant (2.9%)






853,500



3,742,90011,858,641



11,832,520



14,721,920Jenkins Service, LLC (7%)*

Restoration Services

Subordinated Note
    (10.25% Cash, 7.25% PIK, Due 04/14)


7,515,221



7,392,334



7,392,334Convertible Note (10%, 
    Due 04/14)


1,375,000



1,342,799



1,342,7998,890,221



8,735,133



8,735,133Library Systems & Services, LLC (2%)*

Municipal Business Services

Subordinated Note
    (12% Cash, Due 03/11)


1,000,000



972,768



972,768Common Stock Warrants (112 shares)






58,995



1,242,8001,000,000



1,031,763



2,215,568 F-15




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated
    Schedule of Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Novolyte Technologies, Inc. (6%)*

Specialty Manufacturing

Subordinated Note
    (12% Cash, 5.5% PIK, 
    Due 04/15)

$
7,366,289


$
7,230,970


$
7,230,970Preferred Units (600 units)






600,000



545,900Common Units (22,960 units)






150,000



7,366,289



7,980,970



7,776,870Syrgis Holdings, Inc. (3%)*

Specialty Chemical Manufacturer

Senior Notes (7.75%-10.75% Cash, Due 08/12-02/14)


3,337,740



3,314,933



3,314,933Common Units (2,114 units)






1,000,000



447,8003,337,740



4,314,933



3,762,733TBG Anesthesia Management, LLC (6%)*

Physician Management Services

Senior Note (14% Cash, 
    Due 11/14)


8,000,000



7,579,320



7,579,320Warrant (263 shares)






276,100



276,1008,000,000



7,855,420



7,855,420TrustHouse Services Group, Inc. (4%)*

Food Management Services

Subordinated Note
    (12% Cash, 2% PIK, 
    Due 09/15)


4,351,628



4,282,621



4,282,621Class A Units (1,495 units)






475,000



409,700Class B Units (79 units)






25,000



4,351,628



4,782,621



4,692,321Tulsa Inspection Resources, Inc.
    (TIR) and Regent TIR Partners,

Pipeline Inspection Services

Subordinated Note
    (14% Cash, Due 03/14)


5,000,000



4,625,242



4,625,242LLC (RTIR) (4%)*Common Units  RTIR (11 units)






200,000



8,000Common Stock Warrants - TIR (7 shares)






321,000



34,7005,000,000



5,146,242



4,667,942Twin-Star International, Inc. (4%)*

Consumer Home Furnishings Manufacturer

Subordinated Note
    (12% Cash, 3% PIK, 
    Due 04/14)


4,500,000



4,450,037



4,168,000Senior Note (4.29%, 
    Due 04/13)


1,287,564



1,287,564



1,145,0005,787,564



5,737,601



5,313,000Wholesale Floors, Inc. (3%)*

Commercial Services

Subordinated Note
    (12.5%Cash, 1.5% PIK, 
    Due 06/14)


3,500,000



3,363,335



3,363,335Membership Interest Purchase Warrant (4.0%)






132,800



39,8003,500,000



3,496,135



3,403,135Yellowstone Landscape Group, Inc. (9%)*

Landscaping Services

Subordinated Note
    (12% Cash, 3% PIK, Due 04/14)


11,294,699



11,080,907



11,080,90711,294,699



11,080,907



11,080,907Zoom Systems (6%)*

Retail Kiosk Operator

Subordinated Note
    (12.5 Cash, 1.5% PIK,
    Due 12/14)


8,002,667



7,802,667



7,802,667Royalty rights










8,002,667



7,802,667



7,802,667Subtotal Non  Control / Non  Affiliate
    Investments






142,455,328



143,239,223



138,281,894 F-16




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated
    Schedule of Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Affiliate Investments:Asset Point, LLC (4%)*

Asset Management Software Provider

Subordinated Note
    (12% Cash, 7% PIK, Due 03/13)

$
5,417,830


$
5,346,346


$
5,346,346Membership Units (10 units)






500,000



173,6005,417,830



5,846,346



5,519,946Axxiom Manufacturing, Inc. (0%)*

Industrial Equipment Manufacturer

Common Stock (34,100 shares)






200,000



542,400Common Stock Warrant (1,000 shares)










14,000200,000



556,400Brantley Transportation, LLC (Brantley
    Transportation) and Pine Street Holdings,

Oil and Gas Services

Subordinated Note
      Brantley Transportation (14% Cash, Due 12/12)


3,800,000



3,713,247



1,400,000LLC (Pine Street)(4) (1%)*Common Unit Warrants  Brantley Transportation (4,560
    common units)






33,600



Preferred Units  Pine Street (200 units)






200,000



Common Unit Warrants  Pine Street (2,220 units)










3,800,000



3,946,847



1,400,000Dyson Corporation (10%)*

Custom Forging and Fastener Supplies

Subordinated Note
    (12% Cash, 3% PIK, 
    Due 12/13)


10,000,000



9,833,080



9,833,080Class A Units (1,000,000 units)






1,000,000



2,634,70010,000,000



10,833,080



12,467,780Equisales, LLC (6%)*

Energy Products and Services

Subordinated Note
    (13% Cash, 4% PIK, 
    Due 04/12)


6,547,511



6,479,476



6,479,476Class A Units (500,000 units)






500,000



1,375,7006,547,511



6,979,476



7,855,176Flint Acquisition Corporation (2%)*

Specialty Chemical Manufacturer

Preferred Stock (9,875 shares)






308,333



2,571,600308,333



2,571,600Genapure Corporation (0%)*

Lab Testing Services

Genapure Common Stock (5,594 shares)






563,602



641,300563,602



641,300Technology Crops International (4%)*

Supply Chain Management Services

Subordinated Note
    (12% Cash, 5% PIK, 
    Due 03/15)


5,070,492



4,973,767



4,973,767Common Units (50 Units)






500,000



500,0005,070,492



5,473,767



5,473,767 F-17




---



##### Table of Contents



TRIANGLE
    CAPITAL CORPORATION
  Consolidated
    Schedule of Investments  (Continued)
  Type of

Principal





FairPortfolio Company

Industry

Investment(1)(2)

Amount


Cost


Value(3)Waste Recyclers Holdings, LLC (7%)*

Environmental and Facilities Services

Subordinated Note
    (8% Cash, 7.5% PIK, 
    Due 08/13)

$
4,116,978


$
4,048,936


$
4,048,936Subordinated Note
    (3% Cash, 12.5% PIK, 
    Due 08/13)


5,734,318



5,666,275



4,920,000Class A Preferred Units 
    (300 Units)






2,251,100



Class B Preferred Units (886,835 Units)






886,835



281,000Common Unit Purchase Warrant (1,170,083 Units)






748,900



Common Units (153,219 Units)






180,783



9,851,296



13,782,829



9,249,936Subtotal Affiliate Investments






40,687,129



47,934,280



45,735,905Control Investments:FCL Graphics, Inc. (3%)*

Commercial Printing Services

Senior Note (3.76% Cash, 2% PIK, Due 9/11)


1,562,891



1,558,472



1,514,200Senior Note (7.76% Cash, 2% PIK, Due 9/11)


2,005,114



1,999,592



1,943,8002nd Lien Note (2.76% Cash, 8% PIK, Due 12/11)


3,200,672



2,994,352



823,000Preferred Shares (35,000 shares)










Common Shares (4,000 shares)










Members Interests 
    (3,839 Units)










6,768,677



6,552,416



4,281,000Fischbein, LLC (10%)*

Packaging and Materials Handling
    Equipment Manufacturer

Subordinated Note
    (12% Cash, 6.5% PIK, Due 05/13)


7,595,671



7,490,171



7,490,171Class A-1 Common Units (52.5% of Units)






525,000



1,122,300Class A Common Units (4,200,000 units)






4,200,000



4,406,7007,595,671



12,215,171



13,019,171Subtotal Control Investments






14,364,348



18,767,587



17,300,171Total Investments, December 31, 2009(156%)*





$
197,506,805


$
209,941,090


$
201,317,970     *
    
    Value as a percent of net assets(1)
    
    All debt investments are income producing. Common stock,
    preferred stock and all warrants are non  income
    producing.(2)
    
    Disclosures of interest rates on Subordinated Notes include cash
    interest rates and paid  in  kind
    (PIK) interest rates.(3)
    
    All investments are restricted as to resale and were valued at
    fair value as determined in good faith by the Board of Directors.(4)
    
    Pine Street Holdings, LLC is the majority owner of Brantley
    Transportation, LLC and its sole business purpose is its
    ownership of Brantley Transportation, LLC.   F-18




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes
    to Financial Statements
  1.
    Organization,
    Basis of Presentation and Summary of Significant Accounting
    Policies  Organization
        
    The Company acquired 100% of the limited partnership interests
    in the Fund in exchange for approximately 1.9 million
    shares of the Companys common stock. The Fund became a
    wholly owned subsidiary of the Company, retained its license
    under the authority of the SBA to operate as SBIC and continues
    to hold its existing investments and make new investments with
    the proceeds of the IPO; and
    The Company acquired 100% of the equity interests in TML, and
    the management agreement between the Fund and Triangle Capital
    Partners, LLC was terminated.        Basis of
    Presentation
   F-19




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
  Business
    Combinations Business
    Combinations
  Significant
    Accounting Policies
  Use of
    Estimates
    Valuation
    of Investments
  Fair Value Measurements and Disclosures
  Level 1
  Level 2
  Level 3
     F-20




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
           F-21




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
    Percent of TotalTotal

Investments atFor the Quarter Ended:

Companies

Fair Value(1)March 31, 2008


6



35
%June 30, 2008


5



18
%September 30, 2008


8



29
%December 31, 2008


8



34
%March 31, 2009


7



26
%June 30, 2009


6



20
%September 30, 2009


7



24
%December 31, 2009


8



40
%March 31, 2010


7



25
%June 30, 2010


8



29
%September 30, 2010


8



26
%December 31, 2010


9



29
%     (1)
    
    Exclusive of the fair value of new investments made during the
    quarter    Warrants
    Realized
    Gain or Loss and Unrealized Appreciation or Depreciation of
    Portfolio Investments
    Investment
    Classification
   F-22




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
    Cash
    and Cash Equivalents
    Deferred
    Financing Fees
    Depreciation
    Investment
    Income
  and/or
  Payment
    in Kind Interest
    and/or
  Fee
    Income
   F-23




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
    Income
    Taxes
  source-of-income
    Segments
    Concentration
    of Credit Risk
     F-24




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
  Public
    Offerings of Common Stock
          Dividends
    and Distributions
     F-25




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
    AmountPer Share


Paid inDeclared

Record

Payable

Amount


Cash


DRIP


TotalMay 9, 2007

May 31, 2007

June 28, 2007


0.15



358,000



645,000



1,003,000August 8, 2007

August 30, 2007

September 27, 2007


0.26



769,000



981,000



1,750,000November 7, 2007

November 29, 2007

December 27, 2007


0.27



1,837,000







1,837,000December 14, 2007

December 31, 2007

January 28, 2008


0.30



2,041,000







2,041,000Total dividends and distributions in 2007


0.98



5,005,000



1,626,000



6,631,000May 7, 2008

June 5, 2008

June 26, 2008


0.31



2,144,000







2,144,000July 21, 2008

August 14, 2008

September 4, 2008


0.35



2,421,000







2,421,000October 9, 2008

October 30, 2008

November 20, 2008


0.38



2,629,000







2,629,000December 7, 2008

December 23, 2008

January 6, 2009


0.40



2,767,000







2,767,000Total dividends and distributions in 2008


1.44



9,961,000







9,961,000February 13, 2009

February 27, 2009

March, 13, 2009


0.05



352,000







352,000March 11, 2009

March 25, 2009

April 8, 2009


0.40



2,817,000







2,817,000June 16, 2009

July 9, 2009

July 23, 2009


0.40



3,333,000







3,333,000September 23, 2009

October 8, 2009

October 22, 2009


0.41



4,030,000







4,030,000December 1, 2009

December 22, 2009

January 5, 2010


0.41



3,798,000



1,000,000



4,798,000Total dividends and distributions in 2009


1.67



14,330,000



1,000,000



15,330,000March 11, 2010

March 25, 2010

April 8, 2010


0.41



3,678,000



1,215,000



4,893,000June 1, 2010

June 15, 2010

June 29, 2010


0.41



2,919,000



2,005,000



4,924,000August 25, 2010

September 8, 2010

September 22, 2010


0.41



4,137,000



813,000



4,950,000December 01, 2010

December 15, 2010

December 29, 2010


0.42



5,406,000



846,000



6,252,000Total dividends and distributions in 2010


1.65



16,140,000



4,879,000



21,019,000Total dividends and distributions




5.74



45,436,000



7,505,000



52,941,000   Per
    Share Amounts
    Recently
    Issued Accounting Standards
  No. 2010-06, Fair Value Measurements and Disclosures 820-10)
 F-26




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
  2.
    Investments    Percentage ofTotal





Percentage ofCost


Portfolio


Fair Value


Total PortfolioDecember 31, 2010:Subordinated debt, Unitranche and
    2nd lien

    notes

$
279,433,775



86
%

$
270,994,677



83
%Senior debt


8,631,760



3



7,639,159



3Equity shares


29,115,890



9



38,719,699



12Equity warrants


5,985,882



2



7,902,458



2Royalty rights


874,400







734,600



$
324,041,707



100
%

$
325,990,593



100
%December 31, 2009:Subordinated debt, Unitranche and
    2nd lien

    notes

$
179,482,425



86
%

$
166,087,684



83
%Senior debt


11,090,514



5



10,847,886



5Equity shares


15,778,681



8



17,182,500



9Equity warrants


2,715,070



1



6,250,600



3Royalty rights


874,400







949,300



$
209,941,090



100
%

$
201,317,970



100
%       Fair Value at December 31, 2010Level 1


Level 2


Level 3


TotalPortfolio company investments

$



$



$
325,990,593


$
325,990,593$



$



$
325,990,593


$
325,990,593   Fair Value at December 31, 2009Level 1


Level 2


Level 3


TotalPortfolio company investments

$



$



$
201,317,970


$
201,317,970$



$



$
201,317,970


$
201,317,970  F-27




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
    Years Ended December 31,2010


2009Fair value of portfolio, beginning of period

$
201,317,970


$
182,105,291New investments


173,581,930



48,475,570Proceeds from sales of investments


(5,433,709
)


(1,888,384
)Loan origination fees received


(3,351,568
)


(952,500
)Principal repayments received


(49,481,126
)


(19,543,314
)Payment in kind interest earned


5,979,858



5,074,819Payment in kind interest payments received


(3,710,551
)


(2,909,804
)Accretion of loan discounts


701,268



421,495Accretion of deferred loan origination revenue


1,268,839



663,506Realized gain (loss) on investments


(5,454,327
)


448,164Unrealized gain (loss) on investments


10,572,009



(10,576,873
)Fair value of portfolio, end of period

$
325,990,593


$
201,317,970    F-28




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
  3.
    Long 
    Term Debt    Prioritized Return


December 31,


December 31,Issuance/Pooling Date

Maturity Date

(Interest) Rate


2010


2009SBA Debentures:September 22, 2004

September 1, 2014


5.539
%

$



$
8,700,000March 23, 2005

March 1, 2015


5.893
%






13,600,000September 28, 2005

September 1, 2015


5.796
%


9,500,000



9,500,000March 28, 2007

March 1, 2017


6.231
%


4,000,000



4,000,000March 26, 2008

March 1, 2018


6.214
%


6,410,000



6,410,000September 24, 2008

September 1, 2018


6.455
%


50,900,000



50,900,000March 25, 2009

March 1, 2019


5.337
%


22,000,000



22,000,000March 24, 2010

March 1, 2020


4.825
%


6,800,000



6,800,000September 22, 2010

September 1, 2020


3.932
%


32,590,000



October 28, 2010

March 1, 2021


0.975
%


5,000,000



November 9, 2010

March 1, 2021


0.943
%


21,000,000



November 17, 2010

March 1, 2021


0.929
%


7,000,000



December 14, 2010

March 1, 2021


1.130
%


8,000,000



December 23, 2010

March 1, 2021


1.118
%


4,000,000



December 24, 2010

March 1, 2021


1.117
%


10,300,000



December 24, 2010

March 1, 2021


0.887
%


8,100,000



SBA LMI Debentures:September 14, 2010

March 1, 2016


2.508
%


6,864,866



$
202,464,866


$
121,910,000      F-29




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
    4.
    Income
    Taxes  source-of-income
       F-30




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
    Years Ended December 31,2010

2009

2008Additional paid-in capital

$
(171,918
)

$
(29,996
)

$
612,399Investment income in excess of distributions

$
3,385,585


$
34,125


$
(151,906
)Accumulated realized gains on investments

$
(3,213,667
)

$
(4,129
)

$
(460,493
)       For the Year Ended December 31,2010


2009


2008Ordinary income

$
20,078,591


$
14,614,821


$
9,817,002Distributions of long-term capital gains


448,164



356,495



Distributions on a Tax Basis

$
20,256,755


$
14,971,316


$
9,817,002      F-31




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
    As of December 31,2010


2009


2008Undistributed net investment income

$
4,007,334


$
1,344,215


$
634,803Accumulated Capital Gains


(8,244,376
)


448,164



356,495Other permanent differences relating to the Companys
    Formation


1,975,543



1,975,543



1,975,543Other temporary differences


(892,961
)


(1,001,062
)


(317,111
)Unrealized Appreciation (Depreciation)


15,935



(10,448,630
)


931,730Components of Distributable Earnings at Year End

$
(3,138,525
)

$
(7,681,770
)

$
3,581,460     5.
    Equity
    Compensation Plan    Stock Compensation
    Years Ended December 31,2010


2009


2008Weighted-Average





Weighted-Average





Weighted-AverageNumber


Grant-Date Fair


Number


Grant-Date Fair


Number


Grant-Date Fairof Shares


Value per Share


of Shares


Value per Share


of Shares


Value per ShareUnvested shares, beginning of period


219,813


$
10.76



110,800


$
11.11






$
Shares granted during the period


152,944


$
12.01



144,812


$
10.58



113,500


$
11.11Shares vested during the period


(70,059
)

$
10.72



(35,799
)

$
11.11






$
Shares forfeited during the period


















(2,700
)

$
11.11Unvested shares, end of period


302,698


$
11.40



219,813


$
10.76



110,800


$
11.11      F-32




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
  6.
    Commitments
    and Contingencies      Years Ending December 31,

Rent Commitment2011

$
287,8052012


294,5312013


301,368Total

$
883,704  F-33




---



##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
  7.
    Financial
    Highlights  Years Ended December 31,2010


2009


2008


2007


2006(1)(Consolidated)


(Consolidated)


(Consolidated)


(Consolidated)


(Combined)Per share data:Net asset value at beginning of period

$
11.03


$
13.22


$
13.74


$
13.44



N/ANet investment income(2)


1.58



1.63



1.54



0.96



N/ANet realized gain (loss) on investments(2)


(0.43
)


0.05



0.21



(0.09
)


N/ANet unrealized appreciation (depreciation) on investments(2)


0.86



(1.20
)


(0.62
)


0.45



N/ATotal increase from investment operations(2)


2.01



0.48



1.13



1.32



N/ACash dividends/distributions declared


(1.65
)


(1.67
)


(1.44
)


(0.98
)


N/ACommon stock offerings


0.67



(0.53
)










N/AStock-based compensation(2)


(0.05
)


0.08



0.04







N/AShares issued pursuant to Dividend Reinvestment Plan


0.08



0.10







0.24



N/ADistribution to partners(2)














(0.03
)


N/AIncome tax provision(2)


(0.02
)


(0.02
)


(0.02
)


(0.01
)


N/AOther(3)


0.02



(0.63
)


(0.23
)


(0.24
)


N/ANet asset value at end of period

$
12.09


$
11.03


$
13.22


$
13.74



N/AMarket value at end of period(4)

$
19.00


$
12.09


$
10.20


$
12.40



N/AShares outstanding at end of period


14,928,987



11,702,511



6,917,363



6,803,863



N/ANet assets at end of period

$
180,479,159


$
129,099,192


$
91,514,982


$
93,472,353


$
25,156,811Average net assets(5)

$
145,386,905


$
98,085,844


$
94,584,281


$
92,765,399


$
20,447,456Ratio of total operating expenses to average net assets


11
%


14
%


11
%


7
%


18
%Ratio of net investment income to average net assets


14
%


14
%


11
%


7
%


15
%Ratio of total capital called to total capital commitments


N/A



N/A



N/A



N/A



100
%Portfolio turnover ratio


23
%


12
%


13
%


13
%


7
%Total return(6)


71
%


35
%


(6
)%


(11
)%


18
%     (1)
    
    Per share data for the years ended December 31, 2006 is not
    presented as there were no shares of Triangle Capital
    Corporation outstanding during the period.(2)
    
    Weighted average basic per share data.(3)
    
    Represents the impact of the different share amounts used in
    calculating per share data as a result of calculating certain
    per share data based upon the weighted average basic shares
    outstanding during the period and certain per share data based
    on the shares outstanding as of a period end or transaction date.(4)
    
    Represents the closing price of the Companys common stock
    on the last day of the period. F-34




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##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
   (5)
    
    Average net assets for the year ended December 31, 2007 are
    presented as if the IPO and Formation Transactions had occurred
    on January 1, 2007. See Note 1 for a further
    description of the basis of presentation of the Companys
    financial statements.(6)
    
    The total return for the years ended December 31, 2010,
    2009 and 2008 equals the change in the market value of the
    Companys common stock during the period, plus dividends
    declared per share during the period, divided by the market
    value of the Companys common stock at the beginning of the
    period. The total return for the year ended December 31,
    2007 equals the change in the market value of the Companys
    common stock from the IPO price of $15.00 per share plus
    dividends declared per share during the period, divided by the
    IPO price. Total return is not annualized.  8.
    Selected
    Quarterly Financial Data 
    (Unaudited)    Quarter EndedMach 31,

June 30,

September 30,

December 31,2010

2010

2010

2010Total investment income

$
7,484,907


$
8,294,147


$
9,787,085


$
10,419,355Net investment income


3,793,684



4,558,624



5,612,455



6,184,710Net increase (decrease) in net assets resulting from operations


4,149,329



6,867,280



7,183,182



7,190,758Net investment income per share

$
0.32


$
0.38


$
0.46


$
0.42   Quarter EndedMarch 31,

June 30,

September 30,

December 31,2009

2009

2009

2009Total investment income

$
6,504,500


$
6,576,403


$
7,096,643


$
7,584,436Net investment income


3,037,582



3,249,297



3,717,857



4,043,838Net increase (decrease) in net assets resulting from operations


(583,357
)


(2,851,857
)


(778,659
)


8,250,576Net investment income per share

$
0.43


$
0.41


$
0.41


$
0.39   9.
    Subsequent
    Events       F-35




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##### Table of Contents



Triangle
    Capital Corporation
  Notes to
    Financial Statements  (Continued)
       F-36




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##### Table of Contents



EXHIBIT INDEX
  ExhibitNumber

Exhibit3
.1

Articles of Amendment and Restatement of the Registrant (Filed
    as Exhibit (a)(3) to the Registrants Registration
    Statement on
    Form N-2/N-5
    (File
    No. 333-138418)
    filed with the Securities and Exchange Commission on
    December 29, 2006 and incorporated herein by reference).3
.2

Second Amended and Restated Bylaws of the Registrant (Filed as
    Exhibit 3.4 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2008 filed with the
    Securities and Exchange Commission on February 25, 2009 and
    incorporated herein by reference).3
.3

Certificate of Limited Partnership of Triangle Mezzanine
    Fund LLLP (Filed as Exhibit (a)(4) to the Registrants
    Registration Statement on
    Form N-2/N-5
    (File
    No. 333-138418)
    filed with the Securities and Exchange Commission on
    February 13, 2007 and incorporated herein by reference).3
.4

Second Amended and Restated Agreement of Limited Partnership of
    Triangle Mezzanine Fund LLLP (Filed as Exhibit 3.4 to
    the Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    November 11, 2007 and incorporated herein by reference).4
.1

Form of Common Stock Certificate (Filed as Exhibit (d) to
    the Registrants Registration Statement on
    Form N-2/N-5
    (File
    No. 333-138418)
    filed with the Securities and Exchange Commission on
    February 15, 2007 and incorporated herein by reference).4
.2

Triangle Capital Corporation Dividend Reinvestment Plan (Filed
    as Exhibit 4.2 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2007 filed with the
    Securities and Exchange Commission on March 12, 2008 and
    incorporated herein by reference).4
.3

Agreement to Furnish Certain Instruments (Filed as
    Exhibit 4.19 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2008 filed with the
    Securities and Exchange Commission on February 25, 2009 and
    incorporated herein by reference).10
.1

Triangle Capital Corporation Amended and Restated 2007 Equity
    Incentive Plan (Filed as Exhibit 10.1 to the
    Registrants Current Report on
    Form 8-K
    filed with the Securities and Exchange Commission on May 9,
    2008 and incorporated herein by reference).10
.2

Form of Triangle Capital Corporation Non-employee Director
    Restricted Share Award Agreement (Filed as Exhibit 10.2 to
    the Registrants Current Report on
    Form 8-K
    filed with the Securities and Exchange Commission on May 9,
    2008 and incorporated herein by reference).10
.3

Form of Triangle Capital Corporation Executive Officer
    Restricted Share Award Agreement.10
.4

Custodian Agreement between the Registrant and U.S. Bank
    National Association (Filed as Exhibit 10.7 to the
    Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2006 filed with the
    Securities and Exchange Commission on March 29, 2007 and
    incorporated herein by reference).10
.5

Amendment to Custody Agreement between the Registrant and U.S.
    Bank National Association dated February 5, 2008 (Filed as
    Exhibit 10.9 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2007 filed with the
    Securities and Exchange Commission on March 12, 2008 and
    incorporated herein by reference).10
.6

Stock Transfer Agency Agreement between Triangle Capital
    Corporation and The Bank of New York (Filed as
    Exhibit 10.11 to the Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 2007 filed with the
    Securities and Exchange Commission on March 12, 2008 and
    incorporated herein by reference).10
.7

Office Lease Agreement between 3700 Glenwood LLC and Triangle
    Capital Corporation dated March 27, 2008 (Filed as Exhibit
    (k)(6) to the Registrants Registration Statement on
    Form N-2
    (File
    No. 333-151930)
    filed with the Securities and Exchange Commission on
    August 13, 2008 and incorporated herein by reference).14
.1

Code of Business Conduct and Ethics.21
.1

List of Subsidiaries.23
.1

Consent of Ernst & Young LLP.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.




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##### Table of Contents



ExhibitNumber

Exhibit31
.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

Chief Executive Officer 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 2002.32
.2

Chief Financial Officer 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.     
    
    Management contract or compensatory plan or arrangement.