UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549



FORM
10-K



(Mark
One)

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



| |  | For
                                         the fiscal year ended: December 31, 2017
| |  | -------------------------------------------------------------------------------------





OR



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



Commission
file number 333-174873



Triton
Pacific Investment Corporation, Inc.



(Exact
name of registrant as specified in its charter)

|                                                                                       |  |                                                             
|-------------------------------------------------------------------------------------- |  | ------------------------------------------------------------
|Maryland                                                                               |  | 45-2460782                                                  
|(State
        or other jurisdiction
        of
        incorporation or organization) |  | (I.R.S.
        Employer
        Identification
        No.)
|                                                                                       | 
|6701
        Center Drive West, Suite 1450
        Los
        Angeles, CA 90045      
|(Address
                    of principal executive offices)                          

(310)
943-4990

(Registrant’s
telephone number, including area code)



Securities
registered pursuant to Section 12(b) of the Act:



|                        |  |                                         
|----------------------- |  | ----------------------------------------
|Title
    of each class |  | Name
    of exchange on which registered
|None                    |  | Not
    applicable                      



Securities
registered pursuant to Section 12(g) of the Act:



Common
Stock, $0.001 par value per share



Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ 
No ☒



Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ 
No ☒



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



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ 
No ☐















Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.05 of this chapter) is not contained
herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐



Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.

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



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



There
is no established market for the Registrant’s shares of common stock. The Registrant is currently conducting an ongoing
public offering of its shares of common stock pursuant to a Registration Statement on Form N-2, which shares are currently being
offered and sold at $15.06 per share, with discounts available for certain categories of purchasers, or at a price necessary to
ensure that shares are not sold at a price, net of sales load, below net asset value per share.



As
of April 2, 2018, there were 1,486,166.98 shares of the registrant’s Class A common stock, $0.001 par value, outstanding.



DOCUMENTS
INCORPORATED BY REFERENCE



Portions
of the registrant’s definitive Proxy Statement relating to the Registrant’s 2018 Annual Meeting of Stockholders, to
be filed with the Securities and Exchange Commission within 120 days following the end of the Registrant’s fiscal year,
are incorporated by reference in Part III of this annual report on Form 10-K as indicated herein.













Table
of Contents





|           |          |                                                                                                                  | Page
|---------- | -------- | ---------------------------------------------------------------------------------------------------------------- | ----
|Part I.    |          |                                                                                                                 
|           |          | Statement Regarding Forward Looking Information                                                                  | 1   
|           | Item 1.  | Business                                                                                                         | 1   
|           | Item 1A. | Risk Factors                                                                                                     | 16  
|           | Item 1B. | Unresolved Staff Comments                                                                                        | 36  
|           | Item 2.  | Properties                                                                                                       | 36  
|           | Item 3.  | Legal Proceedings                                                                                                | 36  
|           | Item 4.  | Mine Safety Disclosures                                                                                          | 36  
|           |          |                                                                                                                  |     
|Part II.   |          |                                                                                                                 
|           | Item 5.  | Market for Registrant’s Common Equity,
    Related Shareholder Matters and Issuer Purchases of Equity Securities | 37  
|           | Item 6.  | Selected Financial Data                                                                                          | 42  
|           | Item 7.  | Management’s Discussion and Analysis
    of Financial Condition and Results of Operations                        | 43  
|           | Item 7A. | Quantitative and Qualitative Disclosures About
    Market Risk                                                   | 62  
|           | Item 8.  | Financial Statements and Supplementary Data                                                                      | 63  
|           | Item 9.  | Changes in and Disagreements with Accountants
    on Accounting and Financial Disclosure                         | 90  
|           | Item 9A. | Controls and Procedures                                                                                          | 90  
|           | Item 9B. | Other Information                                                                                                | 91  
|           |          |                                                                                                                  |     
|Part III.  |          |                                                                                                                 
|           | Item 10. | Directors, Executive Officers and Corporate
    Governance                                                       | 91  
|           | Item 11. | Executive Compensation                                                                                           | 91  
|           | Item 12. | Security Ownership of Certain Beneficial Owners
    and Management and Related Shareholder Matters               | 91  
|           | Item 13. | Certain Relationships and Related Transactions
    and Director Independence                                     | 91  
|           | Item 14. | Principal Accountant Fees and Services                                                                           | 91  
|           |          |                                                                                                                  |     
|Part IV.   |          |                                                                                                                 
|           | Item 15. | Exhibits, Financial Statement Schedules                                                                          | 92  
|           |          |                                                                                                                  |     
|Signatures | 94      













PART
I



STATEMENT
REGARDING FORWARD LOOKING INFORMATION



The
following information contains statements that constitute forward-looking statements, within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
These statements generally are characterized by the use of terms such as “may,” “should,” “plan,”
“anticipate,” “estimate,” “intend,” “predict,” “believe” and “expect”
or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, our actual results could differ materially from those set forth in the forward-looking
statements. Some factors that might cause such a difference include the following: the current global economic downturn, increased
direct competition, changes in government regulations or accounting rules, changes in local, national and global capital market
conditions, our ability to obtain credit lines or credit facilities on satisfactory terms, changes in interest rates, availability
of proceeds from our offering of shares, our ability to identify suitable investments, our ability to close on identified investments,
inaccuracies of our accounting estimates, our ability to locate suitable borrowers for our loans and the ability of such borrowers
to make payments under their respective loans. Given these uncertainties, we caution you not to place undue reliance on such statements,
which apply only as of the date hereof. We undertake no obligation to publicly release the results of any revisions to these forward-looking
statements that may be made to reflect future events or circumstances or to reflect the occurrence of unanticipated events. The
forward-looking statements should be read in light of the risk factors identified in the “Risk Factors” section of
this report.



| | Item
                            1. | Business
| | ----------------------------------- | --------



General



We
are a publicly registered, non-traded fund focused on private equity, structured as a business development company that primarily
makes equity, structured equity and debt investments in small to mid-sized private U.S. companies. Our investment objectives are
to maximize our portfolio’s total return by generating long-term capital appreciation from our private equity investments
and current income from our debt investments. We are an externally managed, closed-end, non-diversified management investment
company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended.
Triton Pacific Adviser, LLC, our registered investment adviser, (“Triton Pacific Adviser”), serves as our investment
adviser and has engaged ZAIS Group, LLC, or ZAIS, to act as our investment sub-adviser. TFA Associates, LLC serves as our administrator.
Each of these companies is affiliated with Triton Pacific Group, Inc., a private equity investment management firm, and its subsidiary,
Triton Pacific Capital Partners, LLC (“TPCP”), a private equity investment fund management company, each focused on
debt and equity investments in small to mid-sized private companies.



Structured
equity refers to derivative investment products, including convertible notes and warrants, designed to facilitate highly customized
risk-return objectives. Our private equity investments will generally take the form of direct investments in common and preferred
equity as well as structured equity investments such as convertible notes and warrants. We will invest only after we conduct a
thorough evaluation of the risks and strategic opportunities of an investment and a price (or interest rate in the case of debt
investments) has been established that reflects the intrinsic value of the investment opportunity. We will endeavor to identify
the best exit strategy for each private equity investment, including methodology (for example, a sale, company redemption, or
public offering) and an appropriate time horizon. We will then attempt to influence the growth and development of each portfolio
company accordingly to maximize our potential return on investment using such exit strategy or another strategy that may become
preferable due to changing market conditions. We anticipate that the holding period for most of our private equity investments
will range from four to six years, but we will be flexible in order to take advantage of market opportunities or to overcome unfavorable
market conditions. For our debt investments, we intend to invest in senior secured loans, second lien loans and, to a lesser extent,
subordinated loans of small to mid-sized private U.S. companies. The senior secured and second lien secured loans in which we
invest generally will have stated terms of three to seven years and any subordinated investments that we make generally will have
stated terms of up to ten years. However, there is no limit on the maturity or duration of any security we may hold in our portfolio.
The loans in which we intend to invest are often rated by a nationally recognized ratings organization, and generally carry a
rating below investment grade (rated lower than “Baa3” by Moody’s Investors Service or lower than “BBB-”



1







by
Standard & Poor’s Corporation – also known as “junk bonds”). However, we may also invest in non-rated
debt securities.



We
intend to primarily make debt investments likely to generate current income and equity investments in small to mid-sized private
U.S. companies either alone or together with other private equity sponsors. Our investment objective is to generate current income
and long-term capital appreciation.



Triton
Pacific Adviser is responsible for sourcing potential investments, conducting due diligence on prospective investments, analyzing
investment opportunities, structuring investments and monitoring our portfolio on an ongoing basis. In addition, we intend to
elect and qualify to be treated, for U.S. federal income tax purposes, as a regulated investment company (“RIC”),
under subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).



We
are currently offering for sale a maximum of $300,000,000 of our shares of common stock on a “best efforts” basis
pursuant to a registration statement on Form N-2 filed with the Securities and Exchange Commission (“SEC”) under the
Securities Act of 1933, as amended (the “Offering”). Our initial offering commenced on September 4, 2012 and expired
on March 1, 2016 and in that initial offering, we sold a total of 672,670.79 shares of our common stock for the gross proceeds
of $9,893,780. On March 17, 2016, we commenced the follow-on offering of our common stock when our registration statement was
declared effective by the SEC. We have filed post-effective amendments to the registration for our follow-on offering, the most
recent of which was filed on May 2, 2017 and declared effective by the SEC on May 3, 2017.



Effective
March 2, 2016, our shares of common stock were divided into two classes, Class A and Class T. We are currently offering only Class
A shares and intend to offer Class T shares in the future, subject to obtaining a satisfactory exemption relief order from the
SEC, with each class having its own different upfront sales load and fee and expense structure. We may offer additional classes
of shares in the future. We intend to apply for exemptive relief from the SEC with respect to this multiple share class structure,
including our distribution fee and contingent deferred sales charge arrangements. As a condition of such relief, we will be required
to comply with provisions that would not otherwise be applicable to us. The exemptive relief order from the SEC may require us
to supplement or amend the terms set forth in this prospectus, including the terms of the Class A shares currently being offered.
There can be no assurance that the SEC will issue an order permitting such relief.



Our
investment objective is to maximize our portfolio’s total return by generating current income from our debt investments
and long-term capital appreciation from our equity investments. We will seek to meet our investment objectives by:



| | ● | Focusing
                                         primarily on private equity investments and debt investments likely to generate current
                                         income in small and mid-sized private U.S. companies, which we define as companies with
                                         annual revenue of from $10 million to $250 million at the time of investment;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Leveraging
                                         the experience and expertise of our Adviser, its Sub-Adviser and its affiliates in sourcing,
                                         evaluating and structuring transactions;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Employing
                                         disciplined underwriting policies and rigorous portfolio management;
| | - | -----------------------------------------------------------------------------------------------------------------------



| | ● | Developing
                                         our equity portfolio through our Adviser’s Value Enhancement Program, more fully
                                         discussed below in “Investment Objectives and Policies – Investment Process”;
                                         and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Maintaining
                                         a well-balanced portfolio consisting of both debt and equity investments with variable
                                         risk-reward profiles.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



We
intend to be active in both debt and equity investing. We will seek to provide current income to our investors through our debt
investments while seeking to enhance our investors’ overall returns through long term



2







capital
appreciation of our equity investments. We intend to be opportunistic in our investment approach, allocating our investments between
debt and equity, depending on:



| | ● | Investment
                                         opportunities
| | - | -----------------------------------------------------------------



| | ● | Market
                                         conditions
| | - | ----------------------------------------------------------



| | ● | Perceived
                                         Risk
| | - | -------------------------------------------------------



Depending
on the amount of capital we raise in the Offering and subject to subsequent changes in our capital base, we expect that our investments
will generally range between $250,000 and $25 million per portfolio company, although this range may change in the discretion
of our Adviser, subject to oversight by our board of directors. Prior to raising sufficient capital to finance investments in
this range and as a strategy to manage excess cash, we may make smaller and differing types of investments in, for example, high
quality debt securities, and other public and private yield-oriented debt and equity securities, directly and through our Sub-Adviser.



Our
Adviser has engaged ZAIS Group, LLC to act as our investment sub-adviser. ZAIS will assist our Adviser with identifying, evaluating,
negotiating and structuring debt investments and will make investment recommendations for approval by our Adviser. ZAIS is a registered
investment adviser under the Advisers Act and had approximately $4.51 billion in assets under management as of December 31, 2017.
ZAIS is not an affiliate of us or our Adviser and does not own any of our shares. The appointment of ZAIS as our sub-adviser was
approved by our stockholders at a special meeting held on September 16, 2014.



We
will generally source our private equity investments through third party intermediaries and our syndicated debt investments primarily
through our Sub-Adviser. We will invest only after we conduct a thorough evaluation of the risks and strategic opportunity of
an investment and a price (or interest rate in the case of debt investments) has been established that reflects the intrinsic
value of the opportunity. We will endeavor to identify the best exit strategy for each private equity investment, including methodology
(for example, a sale, company redemption or public offering) and an appropriate time horizon. We will then attempt to build each
portfolio company accordingly to maximize our potential return on investment using such exit strategy or another strategy that
may become preferable due to changing market conditions. We anticipate that the holding period for most of our private equity
investments will range from four to six years, but we will be flexible in order to take advantage of market opportunities or to
wait out unfavorable market conditions.



We
intend to generate the majority of our current income by investing in senior secured loans, second lien secured loans and, to
a lesser extent, subordinated loans of private U.S. companies. We may purchase interests in loans through secondary market transactions
in the “over-the-counter” market for institutional loans or directly from our target companies as primary market investments.
In connection with our debt investments, we may on occasion receive equity interests such as warrants or options as additional
consideration. The senior secured and second lien secured loans in which we invest generally will have stated terms of three to
seven years and any subordinated investments that we make generally will have stated terms of up to ten years. However, there
is no limit on the maturity or duration of any security we may hold in our portfolio. The loans in which we intend to invest are
often rated by a nationally recognized ratings organization, and generally carry a rating below investment grade (rated lower
than “Baa3” by Moody’s Investors Service or lower than “BBB-” by Standard & Poor’s Corporation).
However, we may also invest in non-rated debt securities.



As
a BDC, we will be subject to certain regulatory restrictions in making our investments. For example, we generally will not be
permitted to co-invest alongside our Adviser and its affiliates unless we obtain an exemptive order from the SEC or the transaction
is otherwise permitted under existing regulatory guidance, such as syndicated transactions where price is the only negotiated
term, and with approval from our independent directors. We are seeking exemptive orders for investments, though there is no assurance
that such exemptions will be granted, and in either instance, conflicts of interests with affiliates of our Adviser might exist.
Should such conflicts of interest arise, we and the Adviser have developed policies and procedures for dealing with such conflicts
which require the Adviser to (i) execute such transactions for all of the participating investment accounts, including the Company’s,
on a fair and equitable basis, taking into account such factors as the relative amounts of capital available for new



3







investments
and the investment programs and portfolio positions of the Company, the clients for which participation is appropriate and any
other factors deemed appropriate and (ii) endeavor to obtain the advice of Adviser personnel not directly involved with the investment
giving rise to the conflict as to such appropriateness and other factors as well as the fairness to all parties of the investment
and its terms. We intend to make all of our investments in compliance with the 1940 Act and in a manner that will not jeopardize
our status as a BDC or RIC.



As
a BDC, we are permitted under the Company Act to borrow funds to finance portfolio investments. To enhance our opportunity for
gain, we intend to employ leverage as market conditions permit, but, as required under the Company Act, in no event will our leverage
exceed 50% of the value of our assets. While we have not yet determined the amount of leverage we will use, we do not currently
anticipate that we would approach the 50% maximum level frequently or at all. The use of leverage, although it may increase returns,
may also increase the risk of loss to our investors, particularly if the level of our leverage is high and the value of our investments
declines.



Status
of Our Continuous Public Offering



Since
commencing our continuous public offering and through April 2, 2018, we have sold 1,486,166.98 shares of our common stock for
gross proceeds of approximately $21,818,725, including $200,003 of seed capital contributed by our Advisor.



About
our Adviser



Our
Adviser is registered as an investment adviser under the Adviser Act. Our Adviser and Triton Pacific Group, Inc. are under the
common control of Craig Faggen, who is also our Chairman and Chief Executive Officer. Triton Pacific Group, Inc. is an investment
management firm that focuses primarily on private equity investments through its subsidiary, Triton Pacific Capital Partners and
affiliated investment funds. Since 2001, TPCP has focused on debt and equity investments in small to mid-sized private companies
generally with revenues of less than $250 million. Since its inception, affiliates of TPCP have invested in the aggregate about
$160 million in private companies with an estimated aggregate enterprise value at the time of investment of more than $600 million.



Craig
J. Faggen, Ivan Faggen, Joseph Davis and Thomas Scott currently make up the investment committee of our Adviser. Each of them
has extensive investment, operational and advisory experience, primarily working with small to mid-sized companies. Members of
this team have been working together sourcing, structuring, investing and managing investments in small to middle market companies
for over ten years.



Our
board of directors includes a majority of independent directors and oversees and monitors the activities of our Adviser and our
Sub-Adviser, as well as our investment portfolio and performance and annually reviews the compensation paid to our Adviser and
Sub-Adviser. See “Investment Adviser Agreement”, below. In addition to managing our portfolio, our Adviser provides
on our behalf managerial assistance to those of our portfolio companies to which we are required to provide such assistance. We
have the right to terminate the investment advisory agreement upon 60 days’ written notice to the Adviser and our Adviser
has the right to terminate the investment advisory agreement upon 120 days’ written notice to us. Both our Adviser and Sub-Adviser
have the right to terminate the sub-advisory agreement without penalty upon 60 days’ written notice to the other party.



About
our Sub-adviser



Our
Adviser has engaged ZAIS Group, LLC to act as our investment sub-adviser. ZAIS assists our Adviser with identifying, evaluating,
negotiating and structuring debt investments and makes investment recommendations for approval by our Adviser. ZAIS is a registered
investment adviser under the Advisers Act and had approximately $4.51 billion in assets under management as of December 31, 2017.
ZAIS is not an affiliate of us or our Adviser and does not own any of our shares. The appointment of ZAIS as our sub-adviser was
approved by our stockholders at a special meeting held on September 16, 2014. Vincent Ingato will be initially responsible for
the day-to-day management of the debt investments managed by our Sub-Adviser. Mr. Ingato has more than 20 years of investment
experience, primarily investing in debt and other credit oriented securities.





4









Our
Market Opportunity



Our
target market for private equity investments is typically referred to as the lower middle market, which we define as U.S. companies
with revenues from $10 million to $250 million and earnings before income, taxes, depreciation, and amortization, or EBITDA, between
$1 million and $25 million. This lower middle market represents a large majority of the private businesses in the United States,
accounting for 30.7% of the US work force (representing 35 million working Americans).δ* In particular, we believe
that this market offers significant investment opportunities for alternative providers of capital such as us due to the demographic
trend of “baby boom” generation entrepreneurs reaching retirement age. According to PricewaterhouseCoopers’
April 7, 2010 Private Company Trendsetter Barometer, 38% of business owners plan to sell or otherwise dispose of their
business within the next five years. Small business owners (those with less than $100 million in revenue) represent 60% of those
owners planning to do so by sale and of these, 43% are driven by a desire to retire.



We
find that companies in the lower middle market have historically been poorly and inefficiently served by the capital markets.
Many U.S. financial institutions are ill-suited to lend to such companies because such lending (i) is more labor intensive than
lending to large companies due to the smaller size of each investment and the fragmented nature of information available about
them, (ii) requires enhanced due diligence and underwriting practices, including greater and more sustained interaction with management
and financial analysis tailored to the lower middle market, and (iii) may require more extensive on-going monitoring.



The
recent banking and financial crisis has further limited access to credit throughout the economy and particularly affected lower
middle market companies, which have become even more constrained in their ability to access either debt or equity from what few
sources were previously available. Many significant participants in the debt markets over the past five years, such as hedge funds
and managers of collateralized loan obligations, have contracted or eliminated their origination activities as investor credit
concerns have reduced their available funding. Moreover, many regional banks have failed and many that have not continue to face
significant balance sheet constraints and increased regulatory scrutiny, which we believe restricts their ability to provide loans
to lower middle market companies, We believe that this relative decline in competition has created a compelling opportunity for
well-capitalized specialty financial services companies with experience in investing in small to mid-size companies and will drive
higher quality deals to companies such as ours and allow us to be more selective in our investment process. The members of the
investment committee of our Adviser have demonstrated their ability to source and invest in these companies on attractive terms
based on the historical above-average risk-adjusted total returns of their prior investments.



For
our debt investments, we believe that opportunities in senior secured and second lien secured loans are attractive not only because
of the potential returns available, but also because of the strong defensive characteristics of this investment class. Because
these loans have priority in payment among an issuer’s security holders (i.e., they are due to receive payment before bondholders
and equity holders), they carry the least potential risk among investments in the issuer’s capital structure. Further, these
investments are secured by the issuer’s assets, and generally will carry restrictive covenants aimed at ensuring repayment
before unsecured creditors. In addition, most senior secured debt issues carry variable interest rate structures, meaning the
securities are generally less susceptible to declines in value experienced by fixed-rate securities in a rising interest rate
environment. However, in declining interest rate environments, variable interest rate structures decrease the income we would
otherwise receive from our debt securities. In many cases, the loan documents governing these securities provide for an interest
rate floor.





Business
Strategy and Competitive Advantage



Focus
on ‘Basic’ Businesses within the Lower Middle Market.For our private equity investments, we will primarily invest
in small and mid-sized private companies as described above. We believe that these companies are often overlooked by larger private
equity investors and have less access to the capital markets than their larger competitors due to the fact that they are small
and, accordingly, more difficult to source and, in some case, manage. This creates an opportunity to invest in these companies
at lower valuations and on more attractive terms than are typically










δ*Source: Statistics of U.S. Businesses Employment and Payroll Summary: 2012, by Anthony Caruso and published by the US Census
Bureau, released February 2015





5







present
in larger market transactions. We generally will invest in entrepreneurial, but established, companies with positive cash flow.
We will focus on businesses in what we call ‘basic’ industries—that is, industries in which growth is not dependent
on a continuous cycle of new technological development—including healthcare services, business services, consumer products,
specialty finance, light manufacturing, logistics and value-added distribution. We may also invest in certain industries that
are dependent to some degree on technological development and innovation, such as information technology and computer software.



Extensive
Underwriting and Portfolio Management.Our Adviser will employ an extensive underwriting and due diligence process for equity
investments which will include an initial review of all prospective portfolio companies, their competitive position, financial
performance and the dynamics of the industry in which they compete. We will seek to invest with management teams or other private
equity sponsors who have a demonstrated track record building value. Through our Adviser, we will offer managerial assistance
to our portfolio companies, giving them access to our Adviser’s investment experience, direct industry expertise and contacts,
and allowing us to continually monitor their progress. As part of the monitoring process, our Adviser will analyze monthly and
quarterly financial statements versus the previous periods and year, review financial projections, meet with management, attend
board meetings, review all compliance certificates and covenants and maintain our awareness of critical industry developments
and trends.



Untapped
Opportunities.For equity investments, we will seek to identify companies with strong management and untapped potential that
would benefit from a combination of new capital and strategic relationships and our operating expertise and guidance. While the
founders of such companies have built successful enterprises, they often need additional capital and management resources and
a more sophisticated perspective to take the company to the next level. We believe that these companies, led by appropriately
motivated management teams, can be vehicles for creating substantial value through accelerated growth and operational improvements.



Value-Added
Management.For equity investments, we will seek to negotiate terms that will provide us with significant influence or control
of a portfolio company. When making an investment, we will attempt to leverage our Adviser’s operational and financial expertise
to strengthen portfolio company management teams and assist them in achieving their full potential. To do so, we will employ our
Adviser’s Value Enhancement Program, to change the corporate infrastructure of portfolio companies with a view to accelerating
and enhancing their “exit readiness”. This strategy has often resulted in a short-term reduction in portfolio company
earnings and cash flow while the company’s sales catch up with the more robust infrastructure required for rapid growth
that we help put in place. The intended result, however, is a larger, more professional organization, which can either be used
as a platform for future expansion or be built into a potential add-on to a larger player in its market; in either instance an
attractive target for a larger private equity fund or a strategic corporate buyer.



Debt
Investment.We will seek to invest in senior secured loans, second lien secured loans, and, to a lesser extent, subordinated
loans and corporate bonds of established companies. Senior secured loans are situated at the top of the capital structure. Because
these loans have priority in payment, they carry the least risk among all investments in a firm. Generally, our senior secured
loans are expected to have maturities of three to seven years, offer some form of amortization, and have first priority security
interests in the assets of the borrower. Second lien secured loans are immediately junior to senior secured loans and have substantially
the same maturities, collateral and covenant structures as senior secured loans. Second lien secured loans, however, are granted
a second priority security interest in the assets of the borrower. In return for this junior ranking, second lien secured loans
generally offer higher returns compared to senior secured debt. Subordinated debt investments usually rank junior in priority
of payment to senior secured loans and second lien secured loans and are often unsecured, but are situated above preferred equity
and common stock in the capital structure. In return for their junior status compared to first lien and second lien secured loans,
subordinated debt investments typically offer higher returns through both higher interest rates and possible equity ownership
in the form of warrants.



Well
Established Firm and Experienced Investment Committee.Our Adviser’s management team is primarily from TPCP, which was
founded in 2001 to provide access to capital and management/operational expertise to the underserved lower middle market. TPCP
has since expanded to include multiple affiliates and the management of numerous investment funds that specialize in providing
specialty investment opportunities in the lower middle market for institutional and individual investors and a broad array of
capital resources to mature lower middle





6







market
companies. Triton Pacific Capital Partners, LLC has to date invested in 18 companies with an estimated aggregate enterprise value
at the time of acquisition of approximately $500 million.* We believe that the
investment committee of our Adviser has developed a network of relationships with, and a specialty in dealing with, the lower
middle market, as well as a reputation for its expertise, fair dealing, flexibility and ability to handle transactions beyond
the reach of others in this market space.



Industry
Experts.We may engage and retain senior advisors, industry experts, consultants, and
other similar professionals who are not employees or affiliates of us or our Adviser and who, from time to time, receive payments
from, or allocations of a profits interest with respect to, portfolio companies. The nature of the relationship with each of these
experts and the amount of time devoted or required to be devoted by them varies considerably. In certain cases, they may provide
our Adviser with industry-specific insights and feedback on investment themes, assist in transaction due diligence, make introductions
to and provide reference checks on management teams. In other cases, they take on more extensive roles and serve as executives
or directors on the boards of portfolio companies or contribute to the origination of new investment opportunities. There can
be no assurance that any of these experts will continue to serve in such roles and/or continue their arrangements with us, our
Adviser and/or any portfolio companies throughout the term of our investment in any portfolio company.



Strong
Deal Flow.We believe that our Adviser will have strong private equity deal flow as a result of the strong market reputation
of the Adviser and its principals as investors and their network of relationships with numerous transaction brokers and small
financial intermediaries. We believe that their industry relationships with other private equity sponsors, investment banks, business
brokers, merger and acquisition advisers, financial services companies and commercial banks are a significant source for new investment
opportunities. We believe our Adviser is well known in the financial sponsor community, and that its experience and reputation
provide a competitive advantage in originating new investments. From time to time, we may receive referrals for new prospective
investments for which we may pay a referral fee or a finder’s fee.



For
debt investments, our Adviser has engaged ZAIS to serve as our sub-adviser. ZAIS has access to the syndicated loan market, a primary
source of debt investment opportunities for us, as well as syndicate and club deals. ZAIS also has strong relationships with investment
banks, finance companies, and other investment funds that are active in the leveraged finance marketplace.



Diversification.We recognize that an over concentration in one or a limited number of positions in our portfolio would increase the risk of
exposure to adverse changes in a single investment. We will endeavor to construct and maintain our portfolio to reduce such risks,
including through investments throughout a company’s capital structures and among companies in a multitude of different
industries and geographic markets, thereby reducing the concentration of risk in any one type of investment, company or sector
of the economy. We cannot guarantee that we will be successful in this effort.



Investment
Objectives and Policies



Our
investment objective is to generate both current income and long-term capital appreciation primarily through debt and equity investments
in small to mid-size private businesses. We are managed by our Adviser. Our Adviser is controlled by Craig Faggen, our Chairman
and Chief Executive Officer. We have entered into an administration agreement with our Administrator. Pursuant to the administration
agreement, the Administrator furnishes us with office facilities, equipment, clerical, bookkeeping and record keeping services.
Our Administrator performs, assists us in performing or oversees the performance of our required administrative services, which
include, among other things, maintaining required financial records; preparing, printing and disseminating reports to our stockholders;
assist us in publishing our net asset value per share; oversee the preparation and filing of our tax returns; and, generally,
oversee the payment of our expenses and the performance of administrative and professional services rendered to us by others.
We have also contracted with Phoenix American Financial Services to act as our transfer agent, plan administrator, distribution
paying agent and registrar. Our Administrator has also contracted












*Data
regarding TPCP’s investments excludes two early stage venture capital investments made it which are not consistent with
our investment objectives.





7











with
Bank of New York Mellon and affiliated entities to provide additional administrative services, while we have directly engaged
Bank of New York Mellon and affiliated entities to act as our custodian.



We
anticipate making private equity investments from the proceeds of our offering predominately in lower middle market companies.
We expect that each investment will range between $250,000 and $25 million, although this investment size will vary with the size
of our capital base. We define lower middle market companies as those with annual revenues of between $10 million and $250 million,
and EBITDA approximately between $1 million and $25 million. We anticipate that our investments will take the form of newly-originated
loans and equity investments as well as investments in secondary market transactions, including equity purchased from current
owners and loans acquired from banks, other specialty finance companies, private equity sponsors, loan syndications and other
investors.



Our
Adviser has engaged ZAIS Group, LLC. ZAIS assists our Adviser with identifying, evaluating, negotiating and structuring debt investments
and makes investment recommendations for approval by our Adviser. We anticipate our debt investments will primarily consist of
investments in senior secured loans, second lien secured loans and, to a lesser extent, subordinated loans and corporate bonds
of private U.S. companies. We may purchase interests in loans through secondary market transactions in the “over-the-counter”
market for institutional loans or directly from our target companies as primary market investments. In connection with our debt
investments, we may on occasion receive equity interests such as warrants or options as additional consideration. The majority
of our debt investments are expected to be made in small and middle-market companies, which we define as companies with annual
revenue of $10 million to $2.5 billion at the time of investment. In many environments, we believe such a focus offers an opportunity
for superior risk adjusted returns.



The
structure of our investments is likely to vary and we expect to invest throughout a portfolio company’s capital structure,
including, but not limited to, senior secured and unsecured debt, mezzanine debt, preferred equity, common equity, warrants and
other instruments, many of which generate current yield. In addition, in order to diversify our investment portfolio and to the
extent allowed by the Company Act and consistent with our continued qualification as a RIC, we may also invest in loans to larger
companies which should be more liquid than the debt securities of smaller companies.



So
that we continue to qualify as a BDC, we intend to make investments so that at least 70% of our assets are “qualifying assets”
for purposes of the Company Act. We may invest the balance of our portfolio in opportunistic “non-qualifying assets”
investments in order to seek enhanced returns for our stockholders. Such investments may include investments in the debt and equity
instruments of broadly traded public companies. We expect that these investments generally will be in debt securities that are
non-investment grade. Within this 30% basket, we may also invest in debt and equity securities of companies located outside of
the United States. All such investments are intended to be made in compliance with the Company Act and in a manner that will not
jeopardize our status as a RIC.



Investment
Philosophy



We
will focus on the following key elements when evaluating an equity investment opportunity:



Attractive
Industries:We will identify industries that we believe exhibit strong growth characteristics or consolidation attributes,
are experiencing rapid rates of change or are beginning to transform their business models.



Strong
Management: Management is critically important in any company. However, making significant changes in strategy or operations
or driving towards rapid expansion places additional demands on leadership. Therefore, we are only interested in investing in
companies that we believe have strong management teams in place, based on their expertise and prior performance, or where there
is a clear and achievable strategy of attracting the right people to the team. In all cases, we firmly believe it is essential
for management to be committed to agreed-upon strategic objectives for the company prior to making an investment.



Positive
Cash Flow: We will identify companies with a sufficient history or what we believe will be a prospect of positive cash
flow to allow for distributions, while retaining sufficient cash to grow the company.





8









Operating
Inefficiencies/Modernization: Many small businesses have not taken advantage of the tools that have become available to
their industry to drive operational efficiencies and support more rapid growth. We will look to invest in companies that have
potential because they have not yet benefited from new production techniques, new technologies, or other promising industry trends
that have benefited their larger competitors.



Ability
to Add Value:Our Adviser’s experienced executives can be valuable to any management team, particularly those attempting
to grow their company aggressively. We will evaluate each prospective investment to understand our ability, through our Adviser,
to be a value-added partner, either as a member of the board or as a more active advisor.



For
debt investments, we will focus on long term credit performance and principal protection. This defensive oriented strategy is
designed to generate attractive levels of income while minimizing the risk of capital loss. We will attempt to capitalize on our
Adviser’s and Sub-Adviser’s expertise to create a debt portfolio that will perform in a broad range of economic conditions.



Investment
Principles



We
have established the following principles, which we believe, when consistently followed and properly executed, will result in
successful private equity investments:



| | (logo) | Each
                                         investment will be premised on a specific strategic opportunity.
| | ------ | --------------------------------------------------------------------------------------------------------------



| | (logo) | We
                                         will conduct extensive due diligence to obtain an in-depth understanding of the business
                                         and its industry in order to identify and evaluate the strategic and financial opportunities
                                         associated with the investment and the risks associated with those opportunities.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (logo) | The
                                         purchase price or loan terms must be determined from an assessment of the overall investment
                                         opportunity and associated risks, not solely the competitive environment. We will not
                                         pay the “market price” for an investment should we believe the inherent value
                                         of the investment will not sustain such a price. The result may be “missed”
                                         opportunities. However, we believe that investment discipline will better serve our investors
                                         in the long run.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (logo) | The
                                         pricing and structuring of the transaction will be determined by the requirements and
                                         objectives of the strategic plan, not vice versa.
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (logo) | Management
                                         must understand, agree with, and be committed to the goals of a strategic plan and must
                                         have the proper incentives to achieve such goals.
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (logo) | We
                                         will invest on terms that will provide us with relatively significant influence or control
                                         over the companies.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Investment
Process



Private
equity investments are expected to be made in well-managed privately-owned companies. Investment opportunities will be generated
by our Adviser from its relationships with private equity sponsors, bankers, executives and its extensive deal network.



For
private equity investments, we will employ our Adviser’s Value Enhancement Program to further develop the corporate infrastructure
of portfolio companies with a view to accelerating and enhancing their “exit readiness.” Our Adviser’s Value
Enhancement Program takes a company through a four-step process of development towards a targeted exit strategy. Specifically,
when pursuing a private equity investment opportunity, each stage of the investment process presents an opportunity to create
value in the prospective investment.



Stage
I - Sourcing:Equity transactions are sourced primarily from intermediaries, including national, regional and local investment
banks as well as local business brokers. Although some private equity groups prefer to source “proprietary” deals
(i.e., non-marketed deals, without an intermediary), our Adviser has found that intermediaries play a valuable role in
educating sellers in the lower middle market as to the pricing realities of the market and the structural requirements of investors.
Our private equity debt investments will be primarily sourced through other private equity sponsors.





9









Our
Adviser employs an extensive underwriting and due diligence process for private equity investments which includes an initial review
of all prospective portfolio companies, their competitive position, financial performance and the dynamics of the industry in
which they compete. We will seek to invest with management teams or other private equity sponsors who have a demonstrated track
record building value. Through our Adviser, we will offer managerial assistance to our portfolio companies, giving them access
to our Adviser’s investment experience, direct industry expertise and contacts, and allowing us to continually monitor their
progress. As part of the monitoring process, our Adviser will analyze monthly and quarterly financial statements versus the previous
periods and year, review financial projections, meet with management, attend board meetings, review all compliance certificates
and covenants and maintain our awareness of critical industry developments and trends.



In
addition, members of our Adviser have built relationships with executives in industries we believe to be attractive. These executives
may become a source for proprietary opportunities and may be available as industry partners to help evaluate, invest and subsequently
grow the companies.



Stage
II - Due Diligence: A thorough understanding and evaluation of the strategic opportunity offered by a potential investment
and the risks and opportunities unique to a company and its marketplace is crucial to properly evaluate any portfolio company.
This can only be achieved through an extensive due diligence process and comprehensive financial and operational analysis of the
business. We believe that the due diligence process is not just a financial review, but rather a comprehensive industry, operational,
management, marketing, technical and legal assessment. In conducting its due diligence, our Adviser may capitalize on industry
partners’ expertise and relationships when relevant.



During
the initial screening, our Adviser will evaluate the company, assesses its management and look to identify the primary risks and
opportunities. During the due diligence process, our Adviser will employ an extensive checklist of potential areas that could
pose problems for a portfolio company business as well as questions specific to the business and industry that have been derived
from industry standards and modified by experience and the initial screening process. As part of this process, they will conduct
an operational due diligence review. This may include site visits to gain an accurate impression of the business and management’s
capabilities.



The
decision to invest is reached by consensus among the members of the investment committee of our Adviser. Our Adviser believes
that its focus on effective internal communication and its team-based compensation structure has created an environment for a
collaborative, open and complete process, and ultimately leads to better investment decisions.



Stage
III – Structuring Transactions: We believe that the members of the investment committee of our Adviser have developed
complex structuring expertise and mergers and acquisitions experience which we will be able to leverage when making a portfolio
company investment. The intent is to structure transactions in a manner that is fair to the existing shareholders and yet minimizes
the downside risk to us. Because of the inefficiencies in the lower middle market, we believe we will be able to obtain structures
that offer significant risk mitigation for investors.



Stage
IV - Building Companies: Our overall objective is to generate returns from our investment portfolio that provide attractive
risk-reward characteristics for our investors. To meet this objective, we will focus a portion of our Adviser’s efforts
on building our investments into larger, more efficient, and more valuable businesses. We are not in the business of running companies,
but our Adviser has an investment committee with extensive portfolio management experience that is dedicated to, and experienced
in working with companies to build and enhance their operations. For equity and equity-like investments, our Adviser utilizes
a unique Value Enhancement Program to help companies achieve this goal. See “Investment Objectives and Policies –
Investment Principles.”



In
evaluating debt opportunities, our Adviser and our Sub-Adviser will examine information provided by the target company and external
sources such as rating agencies (if applicable) to determine if the opportunity meets our investment criteria and guidelines.
For most loans that are purchased on the secondary market, a comprehensive credit analysis is conducted and maintained by a research
analyst to allow the investment team to make informed buy/ sell decisions and assessment of credit quality. Much of this information
will be derived from financial reports detailing the financial performance along with key metrics on a quarterly basis.





10









(GRAPHIC)



Regulation



We
have elected to be regulated as a BDC under the Company Act. The Company Act contains prohibitions and restrictions relating to
transactions between business development companies and their affiliates, principal underwriters and affiliates of those affiliates
or underwriters. The Company Act requires that a majority of the directors be persons other than “interested persons,”
as that term is defined in the Company Act. In addition, the Company Act provides that we may not change the nature of our business
so as to cease to be, or to withdraw our election as, a business development company unless approved by a majority of our outstanding
voting securities.



The
Company Act defines “a majority of the outstanding voting securities” as the lesser of (i) 67% or more of the voting
securities present at a meeting if the holders of more than 50% of our outstanding voting securities are present or represented
by proxy or (ii) 50% of our voting securities.



We
will generally not be able to issue and sell our common stock at a price below net asset value per share. See “Risk Factors—Risks
Related to Business Development Companies”. Regulations governing our operation as a business development company and RIC
will affect our ability to raise, and the way in which we raise additional capital or borrow for investment purposes, which may
have a negative effect on our growth. We may, however, sell our common stock, or warrants, options or rights to acquire our common
stock, at a price below the then-current net asset value per share of our common stock if our board of directors determines that
such sale is in our best interests and the best interests of our stockholders, and our stockholders approve such sale. In addition,
we may generally issue new shares of our common stock at a price below net asset value per share in rights offerings to existing
stockholders, in payment of dividends and in certain other limited circumstances.





11









We
may invest 100% of our assets in securities or obligations acquired directly from issuers in privately-negotiated transactions.
With respect to such securities, we may, for the purpose of public resale, be deemed an “underwriter” for purposes
of the Securities Act. We may acquire warrants to purchase common stock of our portfolio companies in connection with acquisition
financings or other investments and we may acquire rights to require our portfolio companies to repurchase the securities we acquire
from them in certain circumstances. We do not intend to acquire securities issued by any investment company that exceeds the limits
imposed by the Company Act. Under these limits, except for registered money market funds, we generally cannot acquire more than
3% of the voting stock of any investment company, invest more than 5% of the value of our total assets in the securities or obligations
of one investment company or invest more than 10% of our total assets in the securities or obligations of more than one investment
company. None of our investment policies are fundamental and may be changed without stockholder approval.



We
have in the past and expect in the future to co-invest on a concurrent basis with other affiliates, consistent with existing regulatory
guidance, applicable regulations and our allocation procedures. Certain types of negotiated co-investments may be made only if
we receive an order from the SEC permitting us to do so. We have applied for an exemptive order for co-investments with our affiliates,
however there is no assurance that an exemptive order will be granted. See “Risk Factors.” When we invest alongside
such other accounts as permitted under the 1940 Act, pursuant to SEC staff interpretations, or our exemptive relief from the SEC
permitting greater flexibility relating to co-investments, should that relief be granted, such investments will be made consistent
with such relief and the Adviser’s allocation policy.



Qualifying
Assets



Under
the Company Act, a business development company may not acquire any asset other than assets of the type listed in Section 55(a)
of the Company Act, which are referred to as “qualifying assets”, unless, at the time the acquisition is made, qualifying
assets represent at least 70% of the company’s total assets. The principal categories of qualifying assets relevant to our
business are the following:



| | 1. | Securities
                                         purchased in transactions not involving any public offering from the issuer of such securities,
                                         which issuer (subject to certain limited exceptions) is an eligible portfolio company,
                                         or from any person who is, or has been during the preceding 13 months, an affiliated
                                         person of an eligible portfolio company, or from any other person, subject to such rules
                                         as may be prescribed by the SEC. An eligible portfolio company is defined in the Company
                                         Act as any issuer which:
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a. | is
                                         organized under the laws of, and has its principal place of business in, the United States;
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------



| | b. | is
                                         not an investment company (other than a small business investment company wholly owned
                                         by the business development company) or a company that would be an investment company
                                         but for certain exclusions under the Company Act; and
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c. | satisfies
                                         any of the following:
| | -- | ------------------------------------------------------------------------



| | i. | does
                                         not have any class of securities that is traded on a national securities exchange;
| | -- | --------------------------------------------------------------------------------------------------------------------------------



| | ii. | has
                                         a class of securities listed on a national securities exchange, but has an aggregate
                                         market value of outstanding voting and non-voting common equity of less than $250 million;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii. | is
                                         controlled by a business development company or a group of companies including a business
                                         development company and the business development company has an affiliated person who
                                         is a director of the eligible portfolio company; or
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iv. | is
                                         a small and solvent company having total assets of not more than $4.0 million and capital
                                         and surplus of not less than $2.0 million.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | Securities
                                         of any eligible portfolio company that we control.
| | -- | ------------------------------------------------------------------------------------------------------



|3. | Securities
                                 purchased in a private transaction from a U.S. issuer that is not an investment company or from
                                 an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in
                                 bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase
                                 of its securities was unable to meet its
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





12









| | obligations
                                     as they came due without material assistance other than conventional lending or financing
                                     arrangements.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4. | Securities
                                         of an eligible portfolio company purchased from any person in a private transaction if
                                         there is no ready market for such securities and we already own 60% of the outstanding
                                         equity of the eligible portfolio company.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 5. | Securities
                                         received in exchange for or distributed on or with respect to securities described in
                                         (1) through (4) above, or pursuant to the exercise of warrants or rights relating to
                                         such securities.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 6. | Cash,
                                         cash equivalents, U.S. government securities or high-quality debt securities maturing
                                         in one year or less from the time of investment.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In
addition, a business development company must have been organized and have its principal place of business in the United States
and must be operated for the purpose of making investments in the types of securities described in (1), (2) or (3) above.



Managerial
Assistance



In
order to count portfolio securities as qualifying assets for the purpose of the 70% test, we must either control the issuer of
the securities or must offer to make available to the issuer of the securities (other than small and solvent companies described
above) significant managerial assistance; except that, where we purchase such securities in conjunction with one or more other
persons acting together, one of the other persons in the group may make available such managerial assistance. Making available
managerial assistance means, among other things, any arrangement whereby the business development company, through its directors,
officers or employees, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management,
operations or business objectives and policies of a company.



Temporary
Investments



Pending
investment in other types of “qualifying assets,” as described above, our investments may consist of cash, cash equivalents,
U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment, which we
refer to, collectively, as temporary investments, so that 70% of our assets are qualifying assets. Typically, we will invest in
U.S. Treasury bills or in repurchase agreements, provided that such agreements are fully collateralized by cash or securities
issued by the U.S. government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified
security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price that is greater
than the purchase price by an amount that reflects an agreed-upon interest rate. There is no percentage restriction on the proportion
of our assets that may be invested in such repurchase agreements. However, if more than 25% of our total assets constitute repurchase
agreements from a single counterparty, we would not meet the Diversification Tests in order to qualify as a RIC for federal income
tax purposes. Thus, we do not intend to enter into repurchase agreements with a single counterparty in excess of this limit. Our
Adviser will monitor the creditworthiness of the counterparties with which we enter into repurchase agreement transactions.



Senior
Securities



We
are permitted, under specified conditions, to issue multiple classes of debt and one class of stock senior to our common stock
if our asset coverage, as defined in the Company Act, is at least equal to 200% immediately after each such issuance. In addition,
while any senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the
repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or
repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard
to asset coverage. For a discussion of the risks associated with leverage, see “Risk Factors—Risks Related to Business
Development Companies”. Regulations governing our operation as a business development company and RIC will affect our ability
to raise, and the way in which we raise additional capital or borrow for investment purposes, which may have a negative effect
on our growth.”





13









Code
of Ethics



We
have adopted a code of ethics in accordance with Rule 17j-1 under the Company Act that establishes procedures for personal investments
and restricts certain personal securities transactions. Personnel subject to the code may invest in securities for their personal
investment accounts, including securities that may be purchased or held by us, so long as such investments are made in accordance
with the code’s requirements. We have attached our code of ethics as an exhibit to the registration statement of which this
prospectus is a part. You may also read and copy the code of ethics at the SEC’s Public Reference Room located at 100 F
Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the
SEC at 1-800-SEC-0330. In addition, the code of ethics is available on the EDGAR Database on the SEC’s Internet site at
www.sec.gov.



Compliance
Policies and Procedures



We
have adopted and implemented written policies and procedures reasonably designed to prevent violation of the federal securities
laws and are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of
their implementation. The Company’s chief compliance officer, with whom we contract services, is responsible for administering
these policies and procedures.



Proxy
Voting Policies and Procedures



We
anticipate delegating our proxy voting responsibility to our Adviser. The proxy voting policies and procedures that we anticipate
that our Adviser will follow are set forth below. The guidelines will be reviewed periodically by our Adviser and our non-interested
directors, and, accordingly, are subject to change.



Introduction

As
an investment adviser registered under the Advisers Act, our Adviser has a fiduciary duty to act solely in the best interests
of its clients. As part of this duty, it recognizes that it must vote client securities in a timely manner free of conflicts of
interest and in the best interests of its clients. These policies and procedures for voting proxies for the investment advisory
clients of our Adviser are intended to comply with Section 206 of the Advisers Act and Rule 206(4)-6 thereunder.



Proxy
Policies



Our
Adviser will vote proxies relating to portfolio securities in the best interest of its clients’ stockholders. It will review
on a case-by-case basis each proposal submitted for a stockholder vote to determine its impact on the portfolio securities held
by its clients. Although our Adviser will generally vote against proposals that may have a negative impact on its clients’
portfolio securities, it may vote for such a proposal if there exist compelling long-term reasons to do so.



The
proxy voting decisions of our Adviser are made by the senior officers who are responsible for monitoring each of its clients’
investments. To ensure that its vote is not the product of a conflict of interest, it will require that: (a) anyone involved in
the decision-making process disclose to its chief compliance officer any potential conflict that he or she is aware of and any
contact that he or she has had with any interested party regarding a proxy vote; and (b) employees involved in the decision making
process or vote administration are prohibited from revealing how our Adviser intends to vote on a proposal in order to reduce
any attempted influence from interested parties.



Proxy
Voting Records



You
may obtain information, without charge, regarding how our Adviser votes proxies with respect to our portfolio securities by making
a written request for proxy voting information to our Chief Compliance Officer, 6701 Center Drive West, Suite 1450, Los Angeles,
CA 90045.





14









Other
Matters



We
will be periodically examined by the SEC for compliance with the Company Act.



We
are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and
embezzlement. Further, as a business development company, we are prohibited from protecting any director or officer against any
liability to us or our stockholders arising from willful misconduct, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of such person’s office.



Securities
Exchange Act and Sarbanes-Oxley Act Compliance



We
are subject to the reporting and disclosure requirements of the Exchange Act, including the filing of quarterly, annual and current
reports, proxy statements and other required items. In addition, we will be subject to the Sarbanes-Oxley Act, which imposes a
wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements will affect
us. For example:



| |  | 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 are required to prepare a report regarding
                                         its assessment of our internal control over financial reporting. This report must be
                                         audited by our independent registered public accounting firm; and
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | pursuant
                                         to Item 308 of Regulation S-K and Rule 12a-15 under the Exchange Act, our periodic reports
                                         must disclose whether there were significant changes in our internal controls 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
Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley
Act and the regulations promulgated thereunder. We intend to monitor our compliance with all regulations that are adopted under
the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance therewith.



Jumpstart
Our Business Startups Act (the “JOBS Act”).



The
Jumpstart Our Business Startups Act (the “JOBS Act”) became law on April 5, 2012. The JOBS Act substantially reduces
the regulatory burdens on “emerging growth companies” (“EGCs”), which are companies with less than $1
billion in annual revenue and of which we will qualify during and following an IPO, and also substantially relaxes restrictions
on communications with potential investors in the context of both public and private offerings. Relevant for our purposes EGCs:



| |  | are
                                         exempts from Section 404(b) of the Sarbanes-Oxley Act which requires public companies
                                         to obtain an auditor attestation report on internal controls; and
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | are
                                         exempt from any new accounting standards issued after April 5, 2012 (unless we choose
                                         to avail ourselves of such new standards in whole—meaning should we choose any
                                         new accounting standards we will be subject to them all), until such time as any new
                                         accounting standards become mandatory for private companies.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Certain
other provisions, which may be relevant, including the elimination of restrictions on publicity in connection with certain private
offerings, will not become effective until the SEC adopts implementing rules.





15









Tax
Status



We
have elected to be treated for U.S. federal income tax purposes, and intend to qualify annually thereafter, as a RIC under Subchapter
M of the Code. As a RIC, we generally will not have to pay corporate-level U.S. federal income taxes on any ordinary income or
capital gain that we distribute to our stockholders from our tax earnings and profits. Even if we qualify as a RIC, we generally
will be subject to corporate-level U.S. federal income tax on our undistributed taxable income and could be subject to U.S. federal
excise, state, local and foreign taxes. To obtain and maintain our RIC tax treatment, we must meet specified source-of-income
and asset diversification requirements and distribute annually at least 90% of our ordinary income and net short-term capital
gain in excess of net long-term capital loss, if any. See “Material U.S. Federal Income Tax Considerations.”



License
Agreement



We
have entered into a license agreement with Triton Pacific Group, Inc. pursuant to which it has agreed to grant us a non-exclusive,
royalty-free license to use the name and brand “Triton Pacific”, its related trademarks and other proprietary property.
Under this agreement, we will have a right to use the “Triton Pacific” name and brand, for so long as our Adviser
or one of its affiliates remains our investment adviser. Other than with respect to this limited license, we will have no legal
right to the “Triton Pacific” name and brand. Triton Pacific Group, Inc. is controlled by Craig Faggen, its president
and our chairman of the board and chief executive officer.



Employees



We
do not currently have any employees. Each of our executive officers is a principal, officer or employee of Triton Pacific Adviser
(or an affiliate), which manages and oversees our investment operations.



Corporate
Information



Our
executive offices are located at 6701 Center Drive West, Suite 1450, Los Angeles, CA 90045 and our telephone number is (310) 943-4990.



Both
our quarterly reports on Form 10-Q and our annual reports on Form 10-K will be made available on our website at www.tritonpacificpe.comat the end of each fiscal quarter and fiscal year, as applicable, as will any interim reports on Form 8-K that we file
from time to time with the SEC. These reports will also be available on the SEC’s website at www.sec.gov.



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



Investing
in our common stock involves a number of significant risks. In addition to the other information contained in this prospectus,
you should consider carefully the following information before making an investment in us. The following should not be considered
a complete summary of all the risks associated with an investment, but if any of the following events occur, our business, financial
condition and results of operations could be materially and adversely affected. In such case, the net asset value per share of
our common stock could decline, and you may lose all or part of your investment.



Risks
Relating to Our Business and Structure



Except
for the investments described in this report, we have not identified specific investments that we will make with the proceeds
of our offering, and you will not have the opportunity to evaluate our future investments prior to purchasing shares of our common
stock.



Except
for the investments described in this report, neither we, our Adviser or our Sub-Adviser has identified, made or contracted to
make any investments. As a result, you will not be able to evaluate the economic merits, transaction terms or other financial
or operational data concerning our future investments prior to purchasing shares of our common stock. You must rely on our Adviser
and our board of directors to implement our investment policies,



16







evaluate
our investment opportunities and structure the terms of our investments. Because investors are not able to evaluate our future
investments in advance of purchasing shares of our common stock, other than those investments described in this report, our offering
may entail more risk than other types of offerings. This may hinder your ability to achieve your own personal investment objectives
related to portfolio diversification, risk-adjusted investment returns and other objectives.



We
have not established any limit on the amount of funds we may use from available sources, such as borrowings, if any, or proceeds
from our offering, to fund distributions (which may reduce the amount of capital we ultimately invest in assets).



For
a significant time after the commencement of our offering, a substantial portion of our distributions will result from expense
reimbursements from our Adviser, which are subject to repayment by us within three years. The purpose of this arrangement is to
reduce our operating expenses; to avoid such distributions being characterized as returns of capital for tax purposes and to attempt
to ensure that no portion of our distributions to stockholders will be paid from our offering
proceeds. Despite this, we may still have distributions which could be characterized as a return of capital for GAAP purposes.
Shareholders should understand that any such distributions are not based on our investment performance, and can only be sustained
if we achieve positive investment performance in future periods and/or our Adviser continues to make such expense reimbursements.
Shareholders should also understand that our future repayments will reduce the distributions that they would otherwise receive.
There can be no assurance that we will achieve such performance in order to sustain these distributions, or be able to pay distributions
at all.



Our
ability to enter into transactions with our affiliates is restricted.



We
are prohibited under the Company Act from participating in certain transactions with certain of our affiliates without the prior
approval of our independent directors and, in some cases, the SEC. Any person that owns, directly or indirectly, 5% or more of
our outstanding voting securities will be deemed to be our affiliate for purposes of the Company Act and we will generally be
prohibited from buying or selling any securities (other than our securities) from or to such affiliate, absent the prior approval
of our disinterested directors. The Company Act also prohibits certain “joint” transactions with certain of our affiliates,
which could include investments in the same companies (whether at the same or different times), without prior approval of our
disinterested directors and, in some cases, the SEC. Except under certain circumstances, if a person acquires more than 25% of
our voting securities, we are prohibited from buying or selling any security (other than any security of which we are the issuer)
from or to such person or certain of that person’s affiliates, or entering into prohibited joint transactions with such
persons. Similar restrictions limit our ability to transact business with our officers or directors or their affiliates. As a
result of these restrictions, we may be prohibited from buying or selling any security (other than any security of which we are
the issuer) from or to any company owned, in whole or in significant part, by a private equity fund managed by our Adviser or
its affiliates, which may limit the scope of investment opportunities that would otherwise be available to us without obtaining
an exemptive relief order from the SEC. There is no assurance that a satisfactory exemptive relief order from the SEC will be
obtained.



A
failure on our part to maintain our qualification as a business development company would significantly reduce our operating flexibility.



If
we fail to continuously qualify as a business development company, we might become subject to regulation as a registered closed-end
investment company under the Company Act, which would significantly decrease our operating flexibility. In addition, failure to
comply with the requirements imposed on business development companies by the Company Act could cause the SEC to bring an enforcement
action against us.





17











Regulations
governing our operation as a business development company and RIC will affect our ability to raise, and the way in which we raise,
additional capital or borrow for investment purposes, which may have a negative effect on our growth.



In
order to qualify as a RIC for U.S. federal income tax purposes, we must, among other things, satisfy an annual distribution requirement.
As a result, in order to fund new investments, we may need to periodically access the capital markets to raise cash. We may do
so by issuing “senior securities,” including borrowing money from banks or other financial institutions and issuing
preferred stock, up to the maximum amount allowed under the Company Act—which allows us to borrow only in amounts such that
our asset coverage, as defined in the Company Act, equals at least 200% of our gross assets less all of our liabilities not represented
by senior securities, immediately after each issuance of senior securities. Our ability to issue different types of securities
is also limited. Compliance with these requirements may unfavorably limit our investment opportunities and reduce our ability,
in comparison to other companies, to profit from favorable spreads between the rates at which we can borrow and the rates at which
we can lend. As a BDC, therefore, we may need to issue equity more frequently than our privately-owned competitors, which may
lead to greater stockholder dilution.



If
the value of our assets declines, we may be unable to satisfy the asset coverage test, which would prohibit us from making distributions
and could prevent us from qualifying as a RIC. If we cannot satisfy the asset coverage test, we may be required to sell a portion
of our investments and, depending on the nature of our debt financing, repay a portion of our indebtedness at a time when such
sales may be disadvantageous.



If
we issue preferred stock, it would rank senior to our common stock in our capital structure and preferred stockholders would have
separate voting rights on certain matters and might have other rights, preferences (including as to distributions) and privileges
more favorable than those of our common stockholders. The presence of preferred stock could have the effect of delaying or preventing
a change in control or other transaction that might provide a premium price of our common stockholders or otherwise be in your
best interest. Holders of our common stock would directly or indirectly bear all of the costs associated with offering and servicing
any preferred stock that we issue. We currently do not intend to issue any preferred stock.



We
generally are not able to issue or sell our common stock at a price below net asset value per share, which may be a disadvantage
as compared with other public companies. We may, however, sell our common stock, or warrants, options or rights to acquire our
common stock, at a price below the current net asset value per share of the common stock if our board of directors and independent
directors determine that such sale is in our best interests and the best interests of our stockholders, and our stockholders (as
well as those stockholders that are not affiliated with us) approve such sale. In any such case, the price at which our securities
are to be issued and sold may not be less than a price that, in the determination of our board of directors, closely approximates
the market value of such securities (less any underwriting commission or discount). If our common stock trades at a discount to
our net asset value per share, this restriction could adversely affect our ability to raise capital.



We
also may make rights offerings to our stockholders at prices less than net asset value per share, subject to applicable requirements
of the Company Act. If we raise additional funds by issuing more shares of our common stock or issuing senior securities convertible
into, or exchangeable for, our common stock, the percentage ownership of our stockholders may decline at that time and our stockholders
may experience dilution. Moreover, we can offer no assurance that we will be able to issue and sell additional equity securities
in the future on terms favorable to us or at all.



In
addition, we may in the future seek to securitize our portfolio securities to generate cash for funding new investments. To securitize
loans, we would likely create a wholly-owned subsidiary and contribute a pool of loans to the subsidiary. We would then sell interests
in the subsidiary on a non-recourse basis to purchasers and we would retain all or a portion of the equity in the subsidiary.
An inability to successfully securitize our loan portfolio could limit our ability to grow our business or fully execute our business
strategy and may decrease our earnings, if any. The securitization market is subject to changing market conditions and we may
not be able to access this market when we would otherwise deem appropriate. Moreover, the successful securitization of our portfolio
might expose us to losses as the residual investments in which we do not sell interests will tend to be those that are riskier
and more apt to generate losses. The Company Act also may impose restrictions on the structure of any securitization.





18









A
significant portion of our investment portfolio will be recorded at fair value as determined in good faith by our board of directors
and, as a result, there could be uncertainty as to the actual market value of our portfolio investments.



Under
the Company Act, we are required to carry our portfolio investments at market value or, if there is no readily available market
value, at fair value, as determined by our board of directors. Since most of our investments will not be publicly-traded or actively
traded on a secondary market, our board of directors will determine their fair value quarterly in good faith.



Factors
that may be considered in determining the fair value of our investments include: dealer quotes for securities traded on the secondary
market for institutional investors, the nature and realizable value of any related collateral, the earnings of the portfolio company
and its ability to make payments on its indebtedness, the markets in which the portfolio company does business, comparison to
comparable publicly-traded companies, discounted cash flow and other relevant factors. Because such valuations, and particularly
valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and
may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if
a ready market for these securities existed. Due to this uncertainty, our fair value determinations may cause our net asset value
per share on a given date to materially understate or overstate the value that we may ultimately realize upon the sale of one
or more of our investments.



Because
our business model depends to a significant extent upon the business relationships of our Adviser, the inability of our Adviser
to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could
adversely affect our business.



We
expect that our Adviser and Sub-Adviser will depend on their relationships with private equity sponsors, investment banks and
commercial banks, and we may rely to a significant extent upon these relationships to provide us with potential investment opportunities.
If our Adviser and Sub-Adviser fail to maintain their existing relationships or develop new relationships with other sponsors
or sources of investment opportunities, we may not be able to grow our investment portfolio. In addition, individuals with whom
our Adviser’s and Sub-Adviser’s professionals have relationships are not obligated to provide us with investment opportunities,
and, therefore, there is no assurance that such relationships will generate investment opportunities for us.



The
amount and timing of distributions are uncertain and distributions may be funded from the proceeds of our offering and may represent
a return of capital.



The
amount of any distributions we pay is uncertain. We cannot assure you that we will achieve investment results that will allow
us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our distributions to our stockholders
may exceed our earnings, particularly during the period before we have substantially invested the net proceeds from our offering.
We may fund distributions from the uninvested proceeds of our public offering and borrowings, and we have not established limits
on the amount of funds we may use from net offering proceeds or borrowings to make any such distributions. Therefore, portions
of the distributions that we pay may represent a return of your capital rather than a return on your investment, which will lower
your tax basis in your shares and reduce the amount of funds we have for investment in targeted assets. Further,
the per share amount of distributions on Class A and Class T shares will likely differ because of different allocations of class-specific
expenses. For example, distributions on Class T shares will likely be lower than on Class A shares because Class T shares are
subject to an annual distribution fee.



We
may not be able to pay you distributions, and our distributions may not grow over time. Our ability to pay distributions might
be adversely affected by, among other things, the effect of one or more of the risk factors described in this prospectus. In addition,
the inability to satisfy the asset coverage test applicable to us as a BDC can limit our ability to pay distributions.



We
will be subject to corporate-level income tax if we are unable to qualify as a RIC under Subchapter M of the Code or do not satisfy
the annual distribution requirement.



To
obtain and maintain RIC status and be relieved of federal taxes on the income and gains we distribute to our stockholders, we
must meet the following annual distribution, income source and asset diversification requirements.





19









| | ● | The
                                         annual distribution requirement for a RIC will be satisfied if we distribute to our stockholders
                                         on an annual basis at least 90% of our net ordinary income and realized net short-term
                                         capital gains in excess of realized net long-term capital losses, if any. We will be
                                         subject to a 4% nondeductible federal excise tax, however, to the extent that we do not
                                         satisfy certain additional minimum distribution requirements on a calendar-year basis.
                                         See “Material U.S. Federal Income Tax Considerations.” Because we may use
                                         debt financing, we are subject to an asset coverage ratio requirement under the Company
                                         Act and we may be subject to certain financial covenants under our debt arrangements
                                         that could, under certain circumstances, restrict us from making distributions necessary
                                         to satisfy the distribution requirement. If we are unable to obtain cash from other sources,
                                         we could fail to qualify for RIC tax treatment and thus become subject to corporate-level
                                         income tax.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | The
                                         income source requirement will be satisfied if we obtain at least 90% of our gross 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% 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% 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.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



If
we fail to qualify for or maintain RIC status or to meet the annual distribution requirement for any reason and are subject to
corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available
for distribution and the amount of our distributions.



Our
board of directors may change our operating policies and strategies without prior notice or stockholder approval, the effects
of which may be adverse.



Our
board of directors has the authority to modify or waive our current operating policies, investment criteria and strategies without
prior notice and without stockholder approval. We cannot predict the effect any changes to our current operating policies, investment
criteria and strategies would have on our business, net asset value per share, operating results and value of our stock. However,
the effects might be adverse, which could negatively impact our ability to pay you distributions and cause you to lose all or
part of your investment.



If
we internalize our management functions, your interest in us could be diluted, and we could incur other significant costs and
face other significant risks associated with being self-managed.



Our
board of directors may decide in the future to internalize our management functions. If we do so, we may elect to negotiate to
acquire our Adviser’s assets and personnel. At this time, we cannot anticipate the form or amount of consideration or other
terms relating to any such internalization transaction. Such consideration could take many forms, including cash payments, promissory
notes and shares of our common stock. The payment of such consideration could result in dilution of your interests as a stockholder
and could reduce the earnings per share attributable to your investment.



In
addition, while we would no longer bear the costs of the various fees and expenses we expect to pay to our Adviser under the Investment
Adviser Agreement, we would incur the compensation and benefits costs of our officers and other employees and consultants that
we now expect will be paid by our Adviser or its affiliates. In addition, we may issue equity awards to officers, employees and
consultants, which awards would decrease net income and may further dilute your investment. We cannot reasonably estimate the
amount of fees we would save or



20







the
costs we would incur if we became self-managed. If the expenses we assume as a result of internalization are higher than the expenses
we avoid paying to our Adviser, our earnings per share would be lower as a result of the internalization than they otherwise would
have been, potentially decreasing the amount of funds available to distribute to our stockholders and the value of our shares.
As currently organized, we will not have any employees. If we elect to internalize our operations, we would employ personnel and
would be subject to potential liabilities commonly faced by employers, such as workers disability and compensation claims, potential
labor disputes and other employee-related liabilities and grievances, all of which could result in substantially higher litigation
costs to us.



If
we internalize our management functions, we could have difficulty integrating these functions as a stand-alone entity. In addition,
we could have difficulty retaining the management personnel we employ. Currently, individuals employed by our Adviser and its
affiliates perform asset management and general and administrative functions, including accounting and financial reporting, for
multiple entities. These personnel have a great deal of know-how and experience. We may fail to properly identify the appropriate
mix of personnel and capital needs to operate as a stand-alone entity. An inability to manage an internalization transaction effectively
could result in our incurring excess costs and/or suffering deficiencies in our disclosure controls and procedures or our internal
control over financial reporting. Such deficiencies could cause us to incur additional costs, and our management’s attention
could be diverted from most effectively managing our investments.



If
we borrow money, the potential for gain or loss on amounts invested in us will be magnified and may increase the risk of investing
in us.



Borrowings,
also known as leverage, magnify the potential for gain or loss on invested equity capital. The use of leverage to partially finance
our investments, through borrowings from banks and other lenders, will increase the risk of investing in our common stock. If
the value of our assets decreases, leveraging would cause our net asset value per share to decline more sharply than it otherwise
would have had we not leveraged. Similarly, any decrease in our income would cause net income to decline more sharply than it
would have had we not borrowed. Such a decline could negatively affect our ability to make distributions. Leverage is generally
considered a speculative investment technique.



Because
we intend to distribute substantially all of our income to our stockholders in connection with our election to be treated as a
RIC, we will continue to need additional capital to finance our growth. If additional funds are unavailable or not available on
favorable terms, our ability to grow will be impaired.



In
order to qualify for the tax benefits available to RICs and to avoid payment of excise taxes, we intend to distribute to our stockholders
substantially all of our annual taxable income, except that we may retain certain net capital gains for investment, and treat
such amounts as deemed distributions to our stockholders. If we elect to treat any amounts as deemed distributions, we must pay
income taxes at the corporate rate on such deemed distributions on behalf of our stockholders. As a result of these requirements,
we will likely need to raise capital from other sources to grow our business. As a business development company, we generally
are required to meet a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities,
to total senior securities, which includes all of our borrowings and any outstanding preferred stock, of at least 200%. These
requirements limit the amounts we may borrow. Because we will continue to need capital to grow our investment portfolio, these
limitations may prevent us from incurring debt and require us to raise additional equity at a time when it may be disadvantageous
to do so.



While
we expect to be able to borrow and to issue additional debt and equity securities, we cannot assure you that debt and equity financing
will be available to us on favorable terms or at all. Also, as a business development company, we generally will not be permitted
to issue equity securities at a price below net asset value per share without stockholder approval. If additional funds are not
available to us, we could be forced to curtail or cease new investment activities, and our net asset value per share and share
price could decline. Lastly, any additional equity raised will dilute the interest of current investors.





21









In
selecting and structuring investments appropriate for us, our Adviser and Sub-Adviser will consider the investment and tax objectives
of the Company and our stockholders as a whole, not the investment, tax or other objectives of any stockholder individually.



Our
stockholders may have conflicting investment, tax and other objectives with respect to their investments in us. The conflicting
interests of individual stockholders may relate to or arise from, among other things, the nature of our investments, the structure
or the acquisition of our investments, and the timing of disposition of our investments. As a consequence, conflicts of interest
may arise in connection with decisions made by our Adviser and Sub-Adviser, including with respect to the nature or structuring
of our investments that may be more beneficial for one stockholder than for another stockholder, especially with respect to stockholders’
individual tax situations.



Risks
Related to our Adviser and Its Affiliates



We
will rely on our Adviser and its investment personnel for the selection of our assets and the monitoring of our investments.



We
will have no internal employees. We will depend on the ability, diligence, skill and network of business contacts of our Adviser,
our Sub-Adviser and their investment committee to identify potential investments, to negotiate such acquisitions, to oversee the
management of the investments, and to arrange their timely disposition. We are the first business development company or registered
investment company sponsored by our Adviser. The departure of any of the members of our Adviser or Sub-Adviser could have a material
adverse effect on our ability to achieve our investment objectives. There can be no assurances that the individuals currently
employed by the Adviser or Sub-Adviser who will manage our portfolio will continue to be employed by the Adviser or Sub-Adviser
or that the Adviser or Sub-Adviser will be able to obtain suitable replacements if they leave. In addition, we can offer no assurance
that our Adviser will remain our investment adviser, that our Sub-Adviser will remain our sub-adviser or that we will continue
to have access to their investment professionals or their information and deal flow.



There
are significant potential conflicts of interest which could adversely impact our investment returns.



Our
executive officers and directors, and the principals of our Adviser and Sub-Adviser, serve or may serve as officers, directors
or principals of entities that operate in the same or a related line of business as we do or of investment funds managed by their
affiliates. Accordingly, they may have obligations to investors in those entities, the fulfillment of which might not be in the
best interests of us or our stockholders. For example, Mr. Faggen, our president and chief executive officer, and the president
of our Adviser, as well as other members of TPCP and its affiliates who may also be members of the investment committee of our
Adviser, manage and, following our offering, will continue to manage other funds which are currently in their investment phase
or, though fully invested, are continuing to be actively managed. In addition, in the future, the principals of our Adviser or
Sub-Adviser may manage other funds which may from time to time have overlapping investment objectives with ours and, accordingly,
may invest in asset classes similar to those targeted by us. If this should occur, the principals of our Adviser and Sub-Adviser
may face conflicts of interest in the allocation of investment opportunities to us and such other funds. Although our Adviser’s
and Sub-Adviser’s investment professionals may endeavor to create independent teams to represent conflicting parties and
to allocate investment opportunities in a fair and equitable manner, it is possible that we may not be given the opportunity to
participate in certain investments made by such other funds. In light of such potential conflicts, and as required under the Advisers
Act, our Adviser has adopted a Code of Ethics that, among other things, is intended to provide a framework of principles and procedures
for resolving conflicts of interest in a manner consistent with our Adviser’s fiduciary obligations to its clients.



The
incentive fee we pay to our Adviser in respect of capital gains may be effectively greater than 20%.



As
a result of the operation of the cumulative method of calculating the incentive fees on capital gains we pay to our Adviser, the
cumulative aggregate incentive fee received by our Adviser could be effectively greater than 20%, depending on the timing and
extent of subsequent net realized capital losses or net unrealized depreciation. For additional information on this calculation,
see the disclosure in footnote 2 to Example 2 under the caption



22







“Investment
Adviser Agreement — Overview of Our Investment Adviser — Incentive Fee.” We cannot predict whether, or to what
extent, this payment calculation would affect your investment in our stock.



The
involvement of our Adviser’s investment professionals in our valuation process may create conflicts of interest.



Our
portfolio investments will generally not be in publicly-traded securities. As a result, the value of these securities will not
be readily available. We will value these securities at fair value as determined in good faith by our board of directors. In connection
with that determination, investment professionals from our Adviser will prepare valuations based upon the most recent financial
statements and projected financial results available from our investments. The participation of our Adviser’s investment
professionals in our valuation process could result in a conflict of interest as our Adviser’s management fee is based,
in part, on our gross assets.



Our
fee structure may induce our Adviser to cause us to borrow and make speculative investments.



We
will pay management and incentive fees to our Adviser based on our total assets, including indebtedness. As a result, investors
in our common stock will invest on a “gross” basis and receive distributions on a “net” basis after payment
of such fees and other expenses resulting in a lower rate of return than one might achieve through direct investments. Our base
management fee will be payable based upon our gross assets, which would include any borrowings. This may encourage our Adviser
to use leverage to make additional investments and grow our asset base, which would involve the risks attendant to leverage discussed
elsewhere in this prospectus. In addition, the incentive fee payable by us to our Adviser may create an incentive for it to use
leverage and make investments on our behalf that are riskier or more speculative than would be the case in the absence of such
compensation arrangement, which could result in higher investment losses, particularly during cyclical economic downturns.



The
incentive fee payable by us to our Adviser also may create an incentive for our Adviser to favor investments that have a deferred
interest feature or no interest income, but higher potential total returns. As our Adviser has agreed to waive any incentive fee
on current income which it could have received in accordance with the Advisers Act, it could potentially be incentivized to seek
riskier investments with greater capital gains, while eschewing investments with an increased current income feature.



In
view of these factors, among other things, our board of directors is charged with protecting our interests by monitoring how our
Adviser addresses these and other potential conflicts of interests associated with its services and compensation. While our board
of directors will not review or approve each investment, our independent directors will periodically review our Adviser’s
services and portfolio decisions and performance, as well as the appropriateness of its compensation in light of such factors.



Risks
Relating to Our Investments



Our
investments may be risky, and we could lose all or part of our investment.



Investing
in small and mid-sized companies involves a number of significant risks. Among other things, these companies:



| | ● | May
                                         have shorter operating histories, narrower product lines, smaller market shares and/or
                                         significant customer concentrations than larger businesses, which tend to render them
                                         more vulnerable to competitors’ actions and market conditions, as well as general
                                         economic downturns;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | May
                                         have limited financial resources and limited access to capital markets and may be unable
                                         to meet their obligations under their debt instruments, some of which we may hold or
                                         may be senior to us;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | 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 the company and, in turn, on us. As well,
                                         limited resources may make it
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





23









| |  | difficult
                                         to attract the necessary talent or invest in the necessary infrastructure to help the
                                         company grow;
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | 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. 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.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In
addition, in the course of providing significant managerial assistance to certain of our portfolio companies, certain of our officers
and directors may serve as directors on the boards of such companies. To the extent that litigation arises out of our investments
in these companies, our officers and directors may be named as defendants in such litigation, which could result in an expenditure
of funds (through our indemnification of such officers and directors) and the diversion of management time and resources.



An
investment strategy focused primarily on privately-held companies presents certain challenges, including the lack of available
information about these companies.



We
will invest primarily in privately-held companies. These investments are typically illiquid. As such, we may have difficulty exiting
an investment promptly at a desired price or outside of a normal amortization schedule for debt investments. Private companies
also have reduced access to the capital markets, resulting in diminished capital resources and ability to withstand financial
distress. In addition, little public information generally exists about these companies, which may include a lack of audited financial
statements and ratings by third parties. We must therefore rely on the ability of our Adviser to obtain adequate information to
evaluate the potential risks of investing in these companies. These companies and their financial information may not be subject
to the Sarbanes-Oxley Act and other rules that govern public companies. If we are unable to uncover all material information about
these companies, we may not make a fully informed investment decision, and we may lose money on our investments. These factors
could affect our investment returns.



Our
portfolio companies may incur debt that ranks equally with, or senior to, our debt investments in such companies.



For
our debt investments, we intend to invest primarily in first lien, second lien and, to a lesser extent, subordinated debt issued
by private U.S. companies, including middle market private U.S. companies. Our portfolio companies may have, or may be permitted
to incur, other debt that ranks equally with, or senior to, the debt in which we invest. By their terms, such debt instruments
may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive
payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution,
reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio
company would typically be entitled to receive payment in full before we receive any proceeds. After repaying such senior creditors,
such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking
equally with debt instruments in which we invest, we would have to share on a proportionate basis any distributions with other
creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant
portfolio company.



If
we make unsecured investments, those investments might not generate sufficient cash flow to service their debt obligations to
us.



We
may make unsecured debt investments and debt investments that are subordinated to other obligations of the obligor. Unsecured
investments often reflect a greater possibility that adverse changes in the financial condition of the obligor or in general economic
conditions (including, for example, a substantial period of rising interest rates or



24







declining
earnings) or both may impair the ability of the obligor to make payment of principal and interest. If we make an unsecured investment
in a company, that company may be highly leveraged, and its relatively high debt-to-equity ratio may create increased risks that
its operations might not generate sufficient cash flow to service its debt obligations to us and to more senior lenders.



If
we invest in the securities and obligations of distressed and bankrupt issuers, we might not receive interest or other payments.



We
are authorized to invest in the securities and obligations of distressed and bankrupt issuers, including debt obligations that
are in covenant or payment default. Such investments generally are considered speculative. The repayment of defaulted obligations
is subject to significant uncertainties. Defaulted obligations might be repaid only after lengthy workout or bankruptcy proceedings,
during which the issuer of those obligations might not make any interest or other payments.



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.



If
one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, including the extent to which we
actually provided managerial assistance to that portfolio company, a bankruptcy court might recharacterize our debt investment
and subordinate all or a portion of our claim to that of other creditors. We may also be subject to lender liability claims for
actions taken by us with respect to a borrower’s business or in instances where we exercise control over the borrower or
render significant managerial assistance.



We
generally will not control our portfolio companies in which we make debt investments.



We
do not expect to control our portfolio companies in which we make debt investments, even though we may have board representation
or board observation rights, and our debt agreements with such portfolio companies may contain certain restrictive covenants.
As a result, we are subject to the risk that a portfolio company in which we make debt investments may make business decisions
with which we disagree and the management of such company, as representatives of the holders of their common equity, may take
risks or otherwise act in ways that do not serve our interests as debt investors. Due to the lack of liquidity for our debt investments
in non-traded companies, we may not be able to dispose of our interests in our portfolio companies as readily as we would like
or at an appropriate valuation. As a result, a portfolio company may make decisions that could decrease the value of our portfolio
holdings.



We
may be subject to taxation based on our acquisition of instruments that do not generate cash flow.



We
may make debt investments or finance transactions with debt instruments that may either be issued at a discount to their face
value and provide no interest payments over the life of the instrument (also known as original discount bonds or OID), or we may
receive warrants in connection with the origination of loans, or we may make debt investments from which we may receive payments
in kind, or PIK, interest payments that are capitalized for some portion or over the life of the loan. Each of these types of
instruments represent particular kinds of risk as they do not generate cash flow, though for tax purposes and for our status as
a RIC they will require us to recognize income which must be taxed or distributed.



More
specifically, for any warrants received we will be required to determine the cost basis of such warrants (or other equity related
securities received) based upon their respective fair values on the date of receipt in proportion to the total fair value of the
debt and warrants (or other equity). Any resulting difference between the face amount of the debt and its recorded fair value
resulting from the assignment of value to the warrant or other equity instruments is treated as original issue discount for which
we will be required to immediately recognize income. PIK loans generally represent a significantly higher credit risk than coupon
loans. PIK loans have unreliable valuations because their continuing accruals require judgments about the collectability of the
deferred payments and the value of any collateral. PIK accruals may create uncertainty about the source of distributions to shareholders
(that is, cash distributions might come from offering proceeds or our capital rather than income). Further, the deferral of PIK



25







interest
has the effect of increasing assets under management and, therefore, increasing the base management fee at a compounding rate,
which may create the risk of non-refundable cash payments to the adviser based on accruals that may never be realized.



The
lack of liquidity in our investments may adversely affect our business.



We
will make private equity investments primarily in companies whose securities are not publicly-traded, and whose securities will
be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly-traded securities. The illiquidity
of these investments may make it difficult for us to sell these investments when desired. In addition, if we are required to liquidate
all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded
these investments. Our investments will usually be subject to contractual or legal restrictions on resale or are otherwise illiquid
because there is usually no established trading market for such investments. The illiquidity of most of our investments may make
it difficult for us to dispose of them at a favorable price, and, as a result, we may suffer losses.



We
may not have the funds or ability to make additional investments in the companies in which we invest.



After
our initial investment in a portfolio company, we may be called upon from time to time to provide additional funds to the company
or have the opportunity to increase our investment through the exercise of options or warrants to purchase common stock. There
is no assurance that we will make, or will have sufficient funds to make, follow-on investments. Any decisions not to make a follow-on
investment or any inability on our part to make such an investment may have a negative effect on a portfolio company in need of
such an investment, may result in a missed opportunity for us to increase our participation in a successful operation, may dilute
our interest in the company or may reduce the expected yield on the investment.



The
companies in which we invest may incur debt that ranks equally with, or senior to, our investments in such companies.



We
will invest in all levels of the capital structure of our portfolio companies. These companies may have, or may be permitted to
obtain, additional financing which may rank equally with, or senior to, our investment. By their terms, such financings may entitle
the holders to receive payments of interest or principal on or before the dates on which we are entitled to receive such payments.
Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a company, holders of instruments
ranking senior to our investment would typically be entitled to receive payment in full before we receive any distribution. After
repaying such senior investors, the portfolio company may not have any remaining assets to use for repaying its obligation to
us. In the case of financing ranking equally with our investments, we would have to share on a proportionate basis any distributions
with other investors holding such financing in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy
of the portfolio company.



The
disposition of our investments may result in contingent liabilities.



Most
of our investments will involve private securities. In connection with their disposition, we may be required to make representations
about the business and financial affairs of the portfolio company typical of those made in connection with the sale of a business.
We may also be required to indemnify the purchasers of such investment to the extent that our representations turn out to be inaccurate
or with respect to certain potential liabilities. These indemnification obligations may require us to pay money to the purchasers
of our equity securities as satisfaction of their indemnity claims, which claims must be satisfied through our return of certain
distributions previously made to us.







26









Second
priority liens on collateral securing loans that we make to a company 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.



Certain
loans that we make to portfolio companies will be secured on a second priority basis by the same collateral securing such companies’
senior secured debt. The first priority liens on the collateral will secure the obligations of the companies to their senior lenders
and may secure certain other future debt that may be permitted to be incurred by the company under the agreements governing the
senior loans. The holders of senior secured obligations will generally control the liquidation of the collateral and be entitled
to receive proceeds from any realization of the collateral to repay their obligations in full before we receive any funding. In
addition, the value of the collateral in the event of liquidation will depend on market and economic conditions, the availability
of buyers and other factors. There can be no assurance that the proceeds, if any, from the sale or sales of all of the collateral
would be sufficient to satisfy the loan obligations secured by second priority liens after payment in full of all senior secured
obligations. If such proceeds are not sufficient to repay amounts owed to junior lenders, then we, to the extent we are not repaid
from the proceeds of the sale of the collateral, will only have an unsecured claim against the company’s remaining assets,
if any.



The
rights we may have with respect to the collateral securing the loans we make to a company with outstanding senior debt may also
be limited pursuant to the terms of one or more intercreditor agreements that we enter into with the senior lenders. Under such
agreements, at any time that senior secured obligations are outstanding, any of the following actions that may be taken in respect
of the collateral will be at the direction of the holders of the senior secured obligations:: the ability to cause the commencement
of enforcement proceedings against the collateral; the ability to control the conduct of such proceedings; the approval of amendments
to collateral documents; releases of liens on the collateral; and waivers of past defaults under collateral documents. We may
not have the ability to control or direct such actions, even if our rights are adversely affected.



We
generally will not control companies to which we provide debt.



We
do not expect to control portfolio companies in which we make debt investments, even though we may have board representation or
board observation rights and our debt agreements may contain certain restrictive covenants. As a result, we are subject to the
risk that the management of such a portfolio company may make business decisions with which we disagree or, as representative
of the holders of their common equity, may take risks or otherwise act in ways that do not serve our interests as debt investors.
Due to the lack of liquidity for our investments in non-publicly-traded companies, we may not be able to dispose of our interests
in a portfolio company as readily as we would like or at an appropriate valuation. As a result, a company may make decisions that
could decrease the value of our holdings.





We
may incur lender liability as a result of our lending activities.



In
recent years, a number of judicial decisions have upheld the right of borrowers and others to sue lending institutions on the
basis of various evolving legal theories generally referred to as “lender liability.” Lender liability is generally
based on the idea that a lender has either violated a contractual or implied duty of good faith and fair dealing owed to the borrower
or has assumed a degree of control over the borrower resulting in the creation of fiduciary duties owed to the borrower, its stockholders
and its other creditors. As a lender, we may be subject to allegations of lender liability, which could be costly to defend and
a distraction to our management and could result in significant liability.



Defaults
by our portfolio companies will harm our operating results.



The
failure of a portfolio company in which we make a debt investment to satisfy financial or operating covenants imposed by us or
other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its secured assets, which could
trigger cross-defaults under other agreements and jeopardize the ability of the company to meet its obligations under the debt
or equity securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate
new terms with a defaulting portfolio company, which may include the waiver of certain financial covenants.





27









We
may not realize gains from our private equity investments.



We
will make direct private equity investments in portfolio companies. In addition, when we invest in certain debt investments, we
may acquire warrants to purchase equity securities. Our goal in such investments will be primarily to realize gains upon our disposition
of such equity interests. However, our equity interests may not appreciate in value and, in fact, may decline in value. Accordingly,
we may not be able to realize gains from our private equity investments, and any gains that we do realize on the disposition of
any equity interests may not be sufficient to offset any other losses we experience. We also may be unable to realize any value
if a company does not have a liquidity event, such as a sale of the business, recapitalization or public offering, which would
allow us to sell the underlying equity interests.



We
will experience fluctuations in our quarterly operating results.



We
will experience fluctuations in our quarterly operating results due to a number of factors, including our ability or inability
to make investments in companies that meet our investment criteria, the interest rates payable on the debt securities we acquire,
the default rate on such securities, the level of our expenses, variations in, and the timing of, our recognition of realized
and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. As
a result of these factors, results for any period should not be relied on as being indicative of our performance in future periods.



We
may focus our investments in companies in a particular industry or industries.



If
we focus our investments in companies in a particular industry or industries, any adverse conditions that disproportionately impact
that industry or industries may have a magnified adverse effect on our operating results.



Risks
Relating to Economic Conditions



Future
disruptions or instability in capital markets could negatively impact our ability to raise capital and could have a material adverse
effect on our business, financial condition and results of operations.



From
time to time, the global capital markets may experience periods of disruption and instability, which could materially and adversely
impact the broader financial and credit markets and reduce the availability to us of debt and equity capital. For example, between
2008 and 2009, instability in the global capital markets resulted in disruptions in liquidity in the debt capital markets, significant
write-offs in the financial services sector, the repricing of credit risk in the broadly syndicated credit market and the failure
of major domestic and international financial institutions. In particular, the financial services sector was negatively impacted
by significant write-offs as the value of the assets held by financial firms declined, impairing their capital positions and abilities
to lend and invest. We believe that such value declines were exacerbated by widespread forced liquidations as leveraged holders
of financial assets, faced with declining prices, were compelled to sell to meet margin requirements and maintain compliance with
applicable capital standards. Such forced liquidations also impaired or eliminated many investors and investment vehicles, leading
to a decline in the supply of capital for investment and depressed pricing levels for many assets. These events significantly
diminished overall confidence in the debt and equity markets, engendered unprecedented declines in the values of certain assets,
caused extreme economic uncertainty and significantly reduced the availability of debt and equity capital for the market as a
whole and financial services firms in particular. While market conditions have experienced relative stability in recent years,
there have been continuing periods of volatility and there can be no assurance that adverse market conditions will not repeat
themselves in the future.



Future
volatility and dislocation in the capital markets could create a challenging environment in which to raise or access capital.
For example, the re-appearance of market conditions similar to those experienced from 2008 through 2009 for any substantial length
of time could make it difficult to extend the maturity of or refinance our existing indebtedness or obtain new indebtedness with
similar terms. Significant changes or volatility in the capital markets may also have a negative effect on the valuations of our
investments. While most of our investments will not be publicly traded, applicable accounting standards require us to assume as
part of our valuation process that our investments are sold in a principal market to market participants (even if we plan on holding
an investment through its maturity) and impairments of the market values or fair market values of our investments, even if unrealized,
must be reflected in our financial statements for the applicable period, which could result in significant reductions to our



28







net
asset value for the period. With certain limited exceptions, we are only allowed to borrow amounts or issue debt securities if
our asset coverage, as calculated pursuant to the Company Act, equals at least 200% immediately after such borrowing. Equity capital
may also be difficult to raise during periods of adverse or volatile market conditions. Subject to some limited exceptions, as
a BDC, we are generally not able to issue additional shares of our common stock at a price less than net asset value without first
obtaining approval for such issuance from our stockholders and our independent directors. If we are unable to raise capital or
refinance existing debt on acceptable terms, then we may be limited in our ability to make new commitments or to fund existing
commitments to our portfolio companies. Significant changes in the capital markets may also affect the pace of our investment
activity and the potential for liquidity events involving our investments. Thus, the illiquidity of our investments may make it
difficult for us to sell such investments to access capital if required, and as a result, we could realize significantly less
than the value at which we have recorded our investments if we were required to sell them for liquidity purposes.



Adverse
economic conditions or increased competition for investment opportunities could delay deployment of our capital, reduce returns
and result in losses.



Adverse
economic conditions may make it difficult to find suitable investments promptly, efficiently or effectively in a manner that is
most beneficial to our stockholders. Any delay in investment, or inability to find suitable investments, could adversely affect
our performance, retard or reduce distributions and reduce our overall return to investors. We will compete for investments with
other BDCs and investment funds (including private equity funds and mezzanine funds), as well as commercial banks and other traditional
financial services companies and other sources of funding. Moreover, alternative investment vehicles, such as hedge funds, increasingly
make investments in small to mid-sized private U.S. companies. As a result, competition for investment opportunities in private
U.S. companies is intense and may intensify. Many of our competitors are substantially larger and have considerably greater financial,
technical and marketing resources than we do. For example, some competitors may have a lower cost of capital and access to funding
sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments
than we have. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships
and offer better pricing and more flexible structuring for portfolio companies than we are able to do. We may lose investment
opportunities if we do not match our competitors’ pricing, terms and structure and, if we do, we may not be able to achieve
acceptable returns on our investments or may bear substantial risk of loss of capital. A significant part of our competitive advantage
stems from the fact that the market for investments in private U.S. companies is underserved by traditional commercial banks and
other financial sources. A significant increase in the number or the size of our competitors in this target market could force
us to accept less attractive investment terms. Further, many of our competitors have greater experience operating under, or are
not subject to, the regulatory restrictions imposed on us as a BDC.



Economic
recessions or downturns could impair a company in which we invest and harm our operating results.



Many
of our portfolio companies may be susceptible to economic slowdowns or recessions and may be unable to repay our debt investments
during these periods. In that case, our non-performing assets are likely to increase, and the value of our portfolio is likely
to decrease during these periods. Adverse economic conditions may also decrease the value of any collateral securing our senior
or second lien secured loans. A prolonged recession may further decrease the value of such collateral and result in losses of
value in our portfolio and a decrease in our revenues, net income, assets and net worth. Unfavorable economic conditions also
could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit
to us on terms we deem acceptable. These events could prevent us from increasing investments and harm our operating results.



Changes
in interest rates may affect our cost of capital and net investment income.



Since
we intend to use debt to finance investments, our net investment income will depend, in part, upon the difference between the
rate at which we borrow funds and the rate at which we invest those funds. We expect that our long term fixed rate investments
will be financed primarily with equity and long-term debt. As a result, we can offer no assurance that a significant change in
market interest rates will not have a material adverse effect on our net investment income. In periods of rising interest rates
when we have debt outstanding, our cost of funds will increase,



29







which
could reduce our net investment income. We may occasionally use interest rate risk management techniques, primarily in highly
volatile market conditions, in an effort to limit our exposure to interest rate fluctuations, but we will not use such techniques
as a means of enhancing our returns. These techniques may include various interest rate hedging activities to the extent permitted
by the Company Act. These activities may limit our ability to participate in the benefits of lower interest rates with respect
to the hedged portfolio. Adverse developments resulting from changes in interest rates or hedging transactions could have a material
adverse effect on our business, financial condition and results of operations. Also, we have limited experience in entering into
hedging transactions, and we will initially have to purchase or develop such expertise.



Changes
in financial regulations may have material adverse consequences to us and to our stockholders.



On
July 21, 2010, the President signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank
Act. The Dodd-Frank institutes a wide range of reforms that will have an impact on all financial institutions. Many of the requirements
called for in the Dodd-Frank Act will be implemented over time, most of which will be subject to implementing regulations over
the course of several years. Given the uncertainty associated with the manner in which the provisions of the Dodd-Frank Act will
be implemented by the various regulatory agencies and through regulations, the full impact such requirements will have on our
business, results of operations or financial condition is unclear. While we cannot predict what effect any changes in the laws
or regulations or their interpretations would have on us as a result of the Dodd-Frank Act, these changes could be materially
adverse to us and our stockholders.



Future
changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.



We
and our portfolio companies will be subject to regulation at the local, state and federal level. New legislation may be enacted
or new interpretations, rulings or regulations (including regulations under the Dodd-Frank Act) could be adopted, including those
governing the types of investments we are permitted to make, any of which could harm us and our stockholders, potentially with
retroactive effect.



Additionally,
any changes to the laws and regulations governing our operations relating to permitted investments may cause us to alter our investment
strategy to avail ourselves of new or different opportunities. Such changes could result in material differences to the strategies
and plans set forth in this prospectus and may result in our investment focus shifting from the areas of expertise of our Adviser
to other types of investments in which our Adviser may have less expertise or little or no experience. Thus, any such changes,
if they occur, could have a material adverse effect on our results of operations and the value of your investment.



Efforts
to comply with the Sarbanes-Oxley Act will involve significant expenditures, and non-compliance with the Sarbanes-Oxley Act may
adversely affect us.



We
are subject to the Sarbanes-Oxley Act and the related rules and regulations promulgated by the SEC. Under current SEC rules, our
management will be required to report on our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley
Act and related rules and regulations of the SEC. We will be required to review on an annual basis our internal control over financial
reporting, and on a quarterly and annual basis to evaluate and disclose changes in our internal control over financial reporting.
As a result, we expect to incur significant additional expenses in the near term, which may negatively impact our financial performance
and our ability to pay distributions. This process also will result in a diversion of management’s time and attention. We
cannot be certain as to the timing of completion of our evaluation, testing and remediation actions or the impact of the same
on our operations and we may not be able to ensure that the process is effective or that our internal control over financial reporting
is or will be effective in a timely manner. In the event that we are unable to maintain or achieve compliance with the Sarbanes-Oxley
Act and related rules and regulations, we may be adversely affected.





30









Terrorist
attacks, acts of war or natural 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.



Terrorist
acts, acts of war or natural disasters may disrupt our operations, as well as the operations of the businesses in which we invest.
Such acts have created, and continue to create, economic and political uncertainties and have contributed to recent global economic
instability. Future terrorist activities, military or security operations, or natural disasters could further weaken the domestic
or global economies and create additional uncertainties, which may negatively affect the businesses in which we invest directly
or indirectly and, in turn, could have a material adverse impact on our business, operating results and financial condition. Losses
from terrorist attacks and natural disasters are generally uninsurable.



Risks
Related to Business Development Companies



The
requirement that we invest a sufficient portion of our assets in qualifying assets could preclude us from investing in accordance
with our current business strategy; conversely, the failure to invest a sufficient portion of our assets in qualifying assets
could result in our failure to maintain our status as a BDC.



As
a BDC, we may not acquire any assets other than “qualifying assets” unless, at the time of and after giving effect
to such acquisition, at least 70% of our total assets are qualifying assets. Therefore, we may be precluded from investing in
what we believe are attractive investments if such investments are not qualifying assets. Conversely, if we fail to invest a sufficient
portion of our assets in qualifying assets, we could lose our status as a BDC, which would have a material adverse effect on our
business, financial condition and result of operations. Similarly, these rules could prevent us from making additional investments
in companies in which we have invested, which could result in the dilution of our position, or could require us to dispose of
investments at an inopportune time in order to comply with the Company Act. If we were forced to sell non-qualifying investments
in the portfolio for compliance purposes, the proceeds from such sale could be significantly less than the current value of such
investments. Further, any failure by us to comply with the requirements imposed on BDCs by the Company Act could cause the SEC
to bring an enforcement action against us or expose us to the claims of private litigants. In addition, if approved by a majority
of our stockholders, we may elect to withdraw our status as a BDC. If we withdraw our election or otherwise fail to qualify, or
maintain our qualification, as a BDC, we may be subject to substantially greater regulation under the Company Act as a closed-end
investment company. Compliance with such regulations would significantly decrease our operating flexibility and could significantly
increase our operating costs.



Risks
Relating to the Ongoing Offering and Our Common Stock



Delays
in the application of offering proceeds to our investment program may adversely affect our results.



To
the extent that there are significant delays in the application of the initial or subsequent proceeds of this offering to our
investment program, from time to time, due to market conditions, the relative lack of suitable investment candidates or the time
needed for transaction due diligence and execution, it will be more difficult to achieve our investment objectives and our returns
may be adversely affected.



Although
we have offered to repurchase your shares on a quarterly basis through our share repurchase program, though the terms of any such
repurchases will be limited. As a result you will have limited opportunities to sell your shares.



Beginning
with the second quarter of 2016, we commenced offers to allow you to submit your shares on a quarterly basis for repurchase pursuant
to our share repurchase program at a price equal to the net offering price for the applicable
share class in effect as of the date of such repurchase. However, the share repurchase program includes numerous restrictions
that limit your ability to sell your shares. We intend to limit the number of shares repurchased pursuant to our proposed share
repurchase program as follows: (1) we currently intend to limit the number of shares repurchased during any calendar year to the
number of shares we can repurchase with the proceeds we receive from the sale of shares of our common stock under our distribution
reinvestment plan (at the discretion of our board of directors, we may also use cash on hand, cash available from borrowings and
cash from liquidation of securities investments as of the end of the applicable period to repurchase shares); (2) we do not expect
to repurchase shares in any calendar year in excess of 10% of the weighted average number of shares outstanding in the prior calendar
year, or 2.5% in any quarter; and (3) to the extent that the number of shares submitted to us for repurchase exceeds the



31







number
of shares that we are able to purchase, we will repurchase shares on a pro rata basis, not on a first-come, first-served basis.
Further, we will have no obligation to repurchase shares if the repurchase would violate applicable restrictions on distributions
under federal or Maryland law that prohibit distributions that would cause a corporation to fail to meet statutory tests of solvency.
These limits may prevent us from accommodating all repurchase requests made in any year. Our board of directors may amend, suspend
or terminate the repurchase program upon 30 days’ notice. We will notify you of such developments (1) in our quarterly reports
or (2) by means of a separate mailing to you, accompanied by disclosure in a current or periodic report under the Exchange Act.
During our offering, we will also include this information in a prospectus supplement or post-effective amendment to the registration
statement, as then required under federal securities laws. In addition, although we have adopted a share repurchase program, we
have discretion to not repurchase your shares, to suspend the plan, and to cease repurchases. Further, the plan has many limitations
and should not be relied upon as a method to sell shares promptly and at a desired price.



The
timing of our repurchase offers pursuant to our share repurchase program may be at a time that is disadvantageous to our stockholders.



When
we make quarterly repurchase offers pursuant to the share repurchase program, we may offer to repurchase shares at a price that
is lower than the price you paid for shares of a class in our offering. As a result, to the extent you have the ability to sell
your shares to us as part of our share repurchase program, the price at which you may sell your shares, which we expect to be
the net offering price for the applicable share class in effect as of the date of such repurchase,may be lower than what you paid in connection with your purchase of shares in our offering.



In
addition, if you choose to participate in our share repurchase program, you will be required to provide us with notice of your
intent to participate prior to knowing what the net asset value per share will be on the repurchase date. Although you will have
the ability to withdraw your repurchase request prior to the repurchase date, to the extent you seek to sell your shares to us
as part of our periodic share repurchase program, you will be required to do so without knowledge of what the repurchase price
of our shares will be on the repurchase date.



We
may be unable to invest a significant portion of the net proceeds of our offering on acceptable terms in the timeframe contemplated
by our prospectus.



Delays
in investing the net proceeds of our offering may impair our performance. We cannot assure you that we will be able to identify
any investments that meet our investment objectives or that any investment that we make will produce a positive return. We may
be unable to invest the net proceeds of our offering on acceptable terms within the time period that we anticipate or at all,
which could harm our financial condition and operating results.



In
addition, even if we are able to raise significant proceeds in our offering, we will not be permitted to use such proceeds to
co-invest with certain entities affiliated with our Adviser in transactions originated by our Adviser unless we first obtain an
exemptive order from the SEC and receive approval from our independent directors. We have applied for an exemptive order, and
the SEC has granted exemptive relief for co-investments to other BDCs in the past. However, there can be no assurance that we
will obtain such relief.



We
anticipate that, depending on market conditions, it may take us several months to invest the proceeds of our offering in securities
meeting our investment objectives and providing sufficient diversification of our portfolio. During this period, we will invest
the net proceeds of our offering primarily in cash, cash equivalents, U.S. government securities, repurchase agreements and high-quality
debt instruments maturing in one year or less from the time of investment, which may produce returns that are significantly lower
than the returns which we expect to achieve when our portfolio is fully invested in securities meeting our investment objectives.
As a result, any distributions that we pay during this period may be substantially lower than the distributions that we may be
able to pay when our portfolio is fully invested in securities meeting our investment objectives.





32









Your
interest in us will be diluted if we issue additional shares, which could reduce the overall value of your investment.



Potential
investors in our offering do not have preemptive rights to any shares we issue in the future. Pursuant to our charter, a majority
of our entire board of directors may amend our charter to increase the number of our authorized shares of stock without stockholder
approval. After your purchase in our offering, our board may elect to sell additional shares in this or future public offerings,
issue equity interests in private offerings or issue share-based awards to our independent directors or to employees of our Adviser
or Administrator. To the extent we issue additional equity interests after your purchase in our offering, your percentage ownership
interest in us will be diluted. In addition, depending upon the terms and pricing of any additional offerings and the value of
our investments, you may also experience dilution in the book value and fair value of your shares.



Distribution
Reinvestment Plan will dilute the interest of those who do not opt-in.



We
currently have a distribution re-investment plan that requires participants to opt-in to re-invest distributions paid. For those
investors who do not opt-in to the distribution re-investment plan their interest in the company will be diluted over time, relative
to those investors who do opt-in to have their distributions used to purchase additional shares of our common stock.



We
may issue preferred stock as a means to access additional capital, which could adversely affect common shareholders and subject
us to specific regulation under the Company Act.



We
may issue preferred stock as a means to increase flexibility in structuring future financings and acquisitions. However, preferred
stock has rights and preferences that would adversely affect the holders of common stock, including preferences as to cash distributions
and preferences upon the liquidation or dissolution of the Company. As well, every issuance of preferred stock will be required
to comply with the requirements of the Company Act. The Company Act requires, among other things, that (1) immediately after issuance
and before any distribution is made with respect to our common stock and before any purchase of common stock is made, such preferred
stock together with all other senior securities must not exceed an amount equal to 50% of our total assets after deducting the
amount of such distribution or purchase price, as the case may be, and (2) the holders of shares of preferred stock, if any are
issued, must be entitled as a class to elect two directors at all times and to elect a majority of the directors if distributions
on such preferred stock are in arrears by two years or more. Certain matters under the Company Act require the separate vote of
the holders of any issued and outstanding preferred stock.



Certain
provisions of our charter and bylaws as well as provisions of the Maryland General Corporation Law could deter takeover attempts
and have an adverse impact on the value of our common stock.



Our
charter and bylaws, as well as certain statutory and regulatory requirements, contain certain provisions that may have the effect
of discouraging a third party from attempting to acquire us. Under the Maryland General Corporation Law, “control shares”
acquired in a “control share acquisition” have no voting rights except to the extent approved by a vote of two-thirds
of the votes entitled to be cast on the matter, excluding shares owned by the acquirer, by officers or by employees who are directors
of the corporation. Our bylaws contain a provision exempting from the Control Share Acquisition Act under the Maryland General
Corporation Law any and all acquisitions by any person of our shares of stock. Our board may amend the bylaws to remove that exemption
in whole or in part without stockholder approval if our board determines that removing that exemption is in our best interest
and the best interests of our stockholders. The Control Share Acquisition Act (if we amend our bylaws to be subject to that Act)
may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer. Under the Maryland
General Corporation Law, specified “business combinations,” including certain mergers, consolidations, issuances of
equity securities and other transactions, between a Maryland corporation and any person who owns 10% or more of the voting power
of the corporation’s outstanding voting stock, and certain other parties, (each an “interested stockholder”),
or an affiliate of the interested stockholder, are prohibited for five years after the most recent date on which the interested
stockholder becomes an interested stockholder. Thereafter any of the specified business combinations must be approved by a super
majority vote of the stockholders unless, among other conditions, the corporation’s common stockholders receive a minimum
price for their shares. See “Description of Our Securities—Business Combinations.”





33









Under
the Maryland General Corporation Law, certain statutory provisions permit a corporation that is subject to the Exchange Act and
that has at least three outside directors to be subject to certain corporate governance provisions that may be inconsistent with
the corporation’s charter and bylaws. Among other provisions, a board of directors may classify itself without the vote
of stockholders. Further, the board of directors, by electing into certain statutory provisions and notwithstanding any contrary
provision in the charter or bylaws, may (i) provide that a special meeting of stockholders will be called only at the request
of stockholders entitled to cast at least a majority of the votes entitled to be cast at the meeting, (ii) reserve for itself
the right to fix the number of directors, and (iii) retain for itself the exclusive power to fill vacancies created by the death,
removal or resignation of a director. A corporation may be prohibited by its charter or by resolution of its board of directors
from electing any of the provisions of the statute. We are not prohibited from implementing any or all of the statute.



Additionally,
our board of directors may, without stockholder action, authorize the issuance of shares of stock in one or more classes or series,
including preferred stock; and our board of directors may, without stockholder action, amend our charter to increase the aggregate
number of shares of stock or the number of shares of stock of any class or series that we have authority to issue. These anti-takeover
provisions may inhibit a change of control in circumstances that could give the holders of our common stock the opportunity to
realize a premium over the value of our common stock.



Federal
Income Tax Risks



We
may be subject to certain corporate-level taxes regardless of whether we continue to qualify as a RIC



To
obtain and maintain RIC tax treatment under the Code, we must meet the following annual distribution, income source and asset
diversification requirements. See “Material U.S. Federal Income Tax Considerations.”



| | ● | The
                                         annual distribution requirement for a RIC will be satisfied if we distribute to our stockholders
                                         on an annual basis at least 90% of our net ordinary income and realized net short-term
                                         capital gain in excess of realized net long-term capital loss, if any. We will be subject
                                         to corporate-level U.S. federal income tax on any of our undistributed income or gain.
                                         Additionally, we will be subject to a 4% nondeductible federal excise tax to the extent
                                         that we do not satisfy certain additional minimum distribution requirements on a calendar-year
                                         basis. Because we may use debt financing, we are subject to an asset coverage ratio requirement
                                         under the Company 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 distribution requirement. If we are
                                         unable to obtain cash from other sources, we could fail to qualify for RIC tax treatment
                                         and thus become subject to corporate-level income tax.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | The
                                         income source requirement will be satisfied if we obtain at least 90% of our gross 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% of the value of our assets must consist 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% of the value of our assets
                                         or more than 10% of the outstanding voting securities of the issuer, and no more than
                                         25% 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.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





34









If
we fail to qualify for or maintain RIC tax treatment for any reason and are subject to corporate income tax, the resulting corporate
taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions.
We may also be subject to certain U.S. federal excise taxes, as well as state, local and foreign taxes.



We
may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such
income.



For
federal income tax purposes, we may be required to recognize taxable income in circumstances in which we do not receive a corresponding
payment in cash. For example, if we hold debt obligations that are treated under applicable tax rules as having original issue
discount (such as debt instruments with payment-in-kind (“PIK”) interest, or issued with warrants, or, in certain
cases, with increasing interest rates), we must include in income each year a portion of the original issue discount that accrues
over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year.
We may also have to include in income other amounts that we have not yet received in cash, such as deferred loan origination fees
that are paid after origination of the loan or are paid in non-cash compensation such as warrants or stock. We anticipate that
a portion of our income may constitute original issue discount or other income required to be included in taxable income prior
to receipt of cash. Further, we may elect to amortize market discounts and include such amounts in our taxable income in the current
year, instead of upon disposition, as an election not to do so would limit our ability to deduct interest expenses for tax purposes.



Because
any original issue discount or other amounts accrued will be included in our investment company taxable income for the year of
the accrual, we may be required to make a distribution to our stockholders in order to satisfy the annual distribution requirement,
even though we will not have received any corresponding cash amount. As a result, we may have difficulty meeting the annual distribution
requirement necessary to obtain and maintain RIC tax treatment under the Code. We may have to sell some of our investments at
times and/or at prices we would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities
for this purpose. If we are not able to obtain cash from other sources, we may fail to qualify for RIC tax treatment and thus
become subject to corporate-level income tax. For additional discussion regarding the tax implications of a RIC, see “Material
U.S. Federal Income Tax Considerations—Taxation as a Regulated Investment Company.”



You
may receive shares of our common stock as distributions, which could result in adverse tax consequences to you.



In
order to satisfy the annual distribution requirement applicable to RICs, we may have the ability to declare a portion of a distribution
in shares of our common stock instead of in cash. As long as a portion of such distribution is paid in cash (which portion can
be as low as 10% for our taxable years ending on or before December 31) and certain requirements are met, the entire distribution
to the extent of our current and accumulated earnings and profits would be a dividend for U.S. federal income tax purposes. As
a result, a stockholder would be taxed on the entire distribution in the same manner as a cash distribution, even though a portion
of the distribution was paid in shares of our common stock.



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.



If
you participate in our distribution reinvestment plan, you will be deemed to have received, and for U.S. federal income tax purposes
will be taxed on, the amount reinvested in our common stock to the extent the amount reinvested was not a tax-free return of capital.
As a result, unless you are a tax-exempt entity, you may have to use funds from other sources to pay your tax liability on the
value of our common stock received from the distribution.







35









If
we do not qualify as a “publicly offered regulated investment company,” as defined in the Code, you will be taxed
as though you received a distribution of some of our expenses.



A
“publicly offered regulated investment company” is a regulated investment company whose shares are either (i) continuously
offered pursuant to a public offering, (ii) regularly traded on an established securities market or (iii) held by at least 500
persons at all times during the taxable year. If we are not a publicly offered regulated investment company for any period, a
non-corporate shareholder’s pro rata portion of our affected expenses, including our management fees, will be treated as
an additional distribution to the shareholder and will be deductible by such shareholder only to the extent permitted under the
limitations described below. For non-corporate shareholders, including individuals, trusts, and estates, significant limitations
generally apply to the deductibility of certain expenses of a non-publicly offered regulated investment company, including advisory
fees. In particular, these expenses, referred to as miscellaneous itemized deductions, are deductible to an individual only to
the extent they exceed 2% of such a shareholder’s adjusted gross income, and are not deductible for alternative minimum
tax purposes. While we anticipate that we will constitute a publicly offered regulated investment company after our first tax
year, there can be no assurance that we will in fact so qualify for any of our taxable years.



|Item
    1B. | Unresolved Staff Comments
|------------ | -------------------------



There
are no unresolved comments at this time.



|Item
    2. | Properties
|----------- | ----------



We
do not own any real estate or other physical properties materially important to our operation. We believe that the office facilities
of the Advisor are suitable and adequate for our business as it is contemplated to be conducted.



|Item
    3. | Legal Proceedings
|----------- | -----------------



None
of us, our Advisors or our Administrator, is currently subject to any material legal proceedings, nor, to our knowledge, is any
material legal proceeding threatened against us, or against our Advisors or Administrator. From time to time, we, our Advisors
or Administrator may be a party to certain legal proceedings in the ordinary course of, or incidental to the normal course of,
our business, including the enforcement of our rights under contracts with our portfolio companies. While we cannot predict the
outcome of these legal proceedings with certainty, we do not expect that these proceedings will have a material adverse effect
on our results of operations or financial condition.



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



Not
applicable.



36







PART II



|Item
    5. | Market for Registrant’s
    Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
|----------- | ----------------------------------------------------------------------------------------------------------------



Market
Information



There
is no established public trading market for our common stock, and we do not expect one to develop. Therefore, there is a risk
that a shareholder may not be able to sell our stock at a time or price acceptable to the shareholder, or at all.



Continuous
Public Offering of Common Stock



We
are currently selling our shares of common stock on a continuous basis. On June 14, 2011, our company filed our Registration Statement
with the SEC to register our Offering. The Registration Statement was declared effective by the SEC on September 4, 2012 and our
company commenced its initial Offering. Our initial offering terminated on March 1, 2016 and we commenced the follow-on offering
of our shares on March 17, 2016.



In
our ongoing follow-on offering, we are currently offering at an offering price of $13.21 per share. However, if our net asset
value increases, our offering price will be adjusted to ensure that shares are not sold at a price per share, after deduction
of selling commissions and dealer manager fees, that is below our net asset value per share. Therefore, persons who subscribe
for shares of our common stock in our offering must submit subscriptions for a certain dollar amount, rather than a number of
shares of common stock and, as a result, may receive fractional shares of our common stock. In connection with each closing of
sales of our shares in our offering, our board of directors or a committee thereof is required within 48 hours of the time of
such closing, to make the determination that we are not selling shares of our common stock at a price which, after deducting the
sales load, is below our then current net asset value per share. The board of directors or a committee thereof will consider the
following factors, among others, in making such determination:



| | ● | The
                                         net asset value per share of our common stock disclosed in the most recent periodic report
                                         we filed with the SEC;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Our
                                         management’s assessment of whether any material change in our net asset value per
                                         share has occurred (including through the realization of net gains on the sale of our
                                         portfolio investments) from the period beginning on the date of the most recently disclosed
                                         net asset value per share to the period ending two days prior to the date of the closing;
                                         and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | The
                                         magnitude of the difference between the net asset value per share disclosed in the most
                                         recent periodic report we filed with the SEC and our management’s assessment of
                                         any material change in the net asset value per share since the date of the most recently
                                         disclosed net asset value per share, and the offering price of the shares of our common
                                         stock at the date of closing.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Importantly,
this determination does not require that we calculate net asset value per share in connection with each closing and sale of shares
of our common stock, but instead it involves the determination by the board of directors or a committee thereof that, at the time
at which the closing and sale is made, we are not selling shares of our common stock at a price which, after deducting the sales
load, is materially below the then current net asset value per share.



Moreover,
to the extent that there is even a remote possibility that we may (i) issue shares of our common stock at a price which, after
deducting the sales load, is materially below the then current net asset value per share of our common stock at the time at which
the closing and sale is made or (ii) trigger the undertaking (which we provided to the SEC in the registration statement to which
this prospectus is a part) to suspend the offering of shares of our common stock pursuant to this prospectus if our net asset
value per share fluctuates by certain amounts in certain circumstances until the prospectus is amended, our board of directors
or a committee thereof will elect, in the case of clause (i) above, either to postpone the closing until such time that there
is no longer the possibility of the occurrence of such event or to undertake to determine net asset value per share within two
days prior to any such sale to ensure that such sale will not be at a price which, after deducting the sales load, is materially
below our then current net asset value per share, and, in the case of clause (ii) above, to comply with such undertaking or to
undertake to determine net asset value per share to ensure that such undertaking has not been triggered.





37







As
of December 31, 2017, 1,417,233.32 shares were outstanding, 16,549.18 of which are held by our Adviser, Triton Pacific Adviser.
Set forth below is a chart that presents the use of proceeds from the Offering since we commenced our Offering on September 4,
2012.





|                                                    |  | Year Ended December 31, |  |  |        |           |   |        |            |  |        |   |           |        | 
|--------------------------------------------------- |  | ----------------------- |  |  | ------ | --------- | - | ------ | ---------- |  | ------ | - | --------- | ------ | 
|                                                    |  | 2017                    |  |  | 2016   |           |   | 2015   |            |  | 2014   |   |           | 2013   | 
|                                                    |  | Shares                  |  |  | Amount |           |   | Shares |            |  | Amount |   |           | Shares | 
|Gross proceeds
    from Offering                    |  | 440,963.13              |  |  |        | 6,385,593 |   |        | 444,847.84 |  |        |   | 6,683,706 |        | 
|Reinvestment of Distributions                       |  | 22,461.05               |  |  |        | 291,697   |   |        | 15,548.74  |  |        |   | 215,591   |        | 
|Commissions and Dealer Manager
    Fees             |  |                         |  |  |        | (606,188  | ) |        |            |  |        |   | (581,515  | )      | 
|Net Proceeds to Company from
    Share Transactions |  | 463,424.18              |  |  | $      | 6,071,102 |   |        | 460,396.58 |  |        | $ | 6,317,782 |        | 







Holders



Set
forth below is a chart describing the single class of our securities outstanding as of April 2, 2018:





|                     |  |                   |  |  |                                       |  |  |                                                        | 
|-------------------- |  | ----------------- |  |  | ------------------------------------- |  |  | ------------------------------------------------------ | 
|Title of Class       |  | Amount Authorized |  |  | Amount Held by Us or
 for Our Account |  |  | Amount Outstanding Exclusive of Amount
 Under Column 3 | 
|Class A Common Stock |  | 37,500,000        |  |  | —                                     |  |  | 1,486,166.98                                           | 
|Class T Common Stock |  | 37,500,000        |  |  | —                                     |  |  | —                                                      | 





As
of April 2, 2018, we had 663 record holders of our common stock. No shares of our common stock have been authorized for issuance
under any equity compensation plan. Effective March 2, 2016, all shares of our common stock issued and outstanding at that time
were automatically converted into an equal number of shares of Class A common stock.



Repurchase
Program



The
Company intends to continue to conduct quarterly tender offers pursuant to its share repurchase program. The Company’s board
of directors will consider the following factors, among others, in making its determination regarding whether to cause the Company
to offer to repurchase shares of common stock and under what terms:



| | ● | the
    effect of such repurchases on the Company’s qualification as a RIC (including the consequences of any necessary asset
    sales);
| | - | -----------------------------------------------------------------------------------------------------------------------------------------

| | ● | the
    liquidity of the Company’s assets (including fees and costs associated with disposing of assets);
| | - | ---------------------------------------------------------------------------------------------------------

| | ● | the
    Company’s investment plans and working capital requirements;
| | - | --------------------------------------------------------------------

| | ● | the
    relative economies of scale with respect to the Company’s size;
| | - | -----------------------------------------------------------------------

| | ● | the
    Company’s history in repurchasing shares of common stock or portions thereof; and
| | - | -----------------------------------------------------------------------------------------

| | ● | the
    condition of the securities markets.
| | - | --------------------------------------------

The
Company currently intends to limit the number of shares of common stock to be repurchased during any calendar year to the number
of shares of common stock it can repurchase with the proceeds it receives from the issuance of shares of common stock under its
distribution reinvestment plan. At the discretion of the Company’s board of directors, the Company may also use cash on
hand, cash available from borrowings and cash from the liquidation of securities investments as of the end of the applicable period
to repurchase shares of common stock. In addition, the Company will limit the number of shares of common stock to be repurchased
in any calendar year to 10% of the weighted average number of shares of common stock outstanding in the prior calendar year, or
2.5% in each calendar quarter, though the actual number of shares of common stock that the Company offers to repurchase may be
less in light of the limitations noted above.



Our
board of directors reserves the right, in its sole discretion, to limit the number of shares to be repurchased for each class
by applying the limitations on the number of shares to be repurchased, noted above, on a per class basis. We further anticipate
that we will offer to repurchase such shares on each date of repurchase at a price equal to 90% of the current offering price
on each date of repurchase. If the amount of repurchase requests exceeds the number of shares we seek to repurchase, we will repurchase
shares on a pro-rata basis. As a result, we may repurchase less than the full amount of shares that shareholders submit for repurchase.
If we do not repurchase the full amount of the





38







shares that shareholders have requested to be repurchased, or we determine not
to make repurchases of our shares, shareholders may not be able to dispose of their shares. Any periodic repurchase offers will
be subject in part to our available cash and compliance with the Company Act.



The
following table provides information concerning the Company’s repurchase of shares of common stock during the years ended
December 31, 2017 and 2016 (no repurchases prior to fiscal year 2016):





|For the Three Months Ended |  | Repurchase Date    |  | Shares Repurchased |           |  | Percentage of Shares Tendered That Were Repurchased |     |  | Average Price Paid per Share |   |       | Aggregate Consideration for Repurchased Shares | 
|-------------------------- |  | ------------------ |  | ------------------ | --------- |  | --------------------------------------------------- | --- |  | ---------------------------- | - | ----- | ---------------------------------------------- | 
|Fiscal 2018                |  |                    |  |                    |           |  |                                                     |     |  |                              |   |       |                                                | 
|March 31, 2018             |  | March 28, 2018     |  |                    | 6,388.01  |  |                                                     | 11% |  |                              | $ | 12.11 |                                                | 
|Total                      |  |                    |  |                    | 6,388.01  |  |                                                     | 11% |  |                              |   | 12.11 |                                                | 
|Fiscal 2017                |  |                    |  |                    |           |  |                                                     |     |  |                              |   |       |                                                | 
|March 31, 2017             |  | January 20, 2017   |  |                    | 8,482.60  |  |                                                     | 27% |  |                              | $ | 13.87 |                                                | 
|June 30, 2017              |  | May 12, 2017       |  |                    | 1,936.81  |  |                                                     | 6%  |  |                              |   | 13.55 |                                                | 
|September 30, 2017         |  | September 25, 2017 |  |                    | 5,968.22  |  |                                                     | 9%  |  |                              |   | 12.30 |                                                | 
|December 31, 2017          |  | December 22,2017   |  |                    | 6,212.40  |  |                                                     | 10% |  |                              |   | 12.11 |                                                | 
|Total                      |  |                    |  |                    | 22,600.03 |  |                                                     | 12% |  |                              |   | 12.94 |                                                | 
|Fiscal 2016                |  |                    |  |                    |           |  |                                                     |     |  |                              |   |       |                                                | 
|September 30, 2016         |  | July 15, 2016      |  |                    | 8,482.60  |  |                                                     | 50% |  |                              | $ | 13.80 |                                                | 
|December 31, 2016          |  | October 14, 2016   |  |                    | 8,482.60  |  |                                                     | 48% |  |                              |   | 13.80 |                                                | 
|Total                      |  |                    |  |                    | 16,965.20 |  |                                                     | 49% |  |                              | $ | 13.80 |                                                | 



Recent
Sales of Unregistered Securities



There
were no sales of unregistered securities in the year ended December 31, 2017.



Distributions



On
January 15, 2015, our board of directors declared a quarterly cash distribution for the fourth quarter of 2014 of $0.07545 per
share payable on January 30, 2015, to shareholders of record as of January 20, 2015. In addition, on April 2, 2015, our board
of directors declared a cash distribution for the first quarter of 2015 of $0.116 per share payable on April 13, 2015, to shareholders
of record as of April 6, 2015. Commencing in April 2015, and subject to our board of directors’ discretion and applicable
legal restrictions, our board of directors began to authorize and declare a monthly distribution amount per share of our common
stock, payable in advance. We will then calculate each stockholder’s specific distribution amount for the month using record
and declaration dates, and your distributions will begin to accrue on the date we accept your subscription for shares of our common
stock. To date, we have paid monthly distributions as follows (all distributions to date have been to Class A Shares):





39









|                   |  |  | Distribution |        
|------------------ |  |  | ------------ | -------
|Fiscal 2017        |  |  | Per Share    |        
|January 27, 2017   |  |  | $            | 0.04000
|February 24, 2017  |  |  | $            | 0.04000
|March 23, 2017     |  |  | $            | 0.04000
|April 27, 2017     |  |  | $            | 0.04000
|May 25, 2017       |  |  | $            | 0.04000
|June 23, 2017      |  |  | $            | 0.04000
|July 21, 2017      |  |  | $            | 0.04000
|August 29, 2017    |  |  | $            | 0.03417
|September 28, 2017 |  |  | $            | 0.03417
|October 26, 2017   |  |  | $            | 0.03417
|November 27, 2017  |  |  | $            | 0.03370
|December 26, 2017  |  |  | $            | 0.03370
|                   |  |  |              |        
|Fiscal 2016        |  |  |              |        
|January 22, 2016   |  |  | $            | 0.04500
|February 16, 2016  |  |  | $            | 0.04500
|March 23, 2016     |  |  | $            | 0.04500
|April 21, 2016     |  |  | $            | 0.04500
|May 19, 2016       |  |  | $            | 0.04500
|June 23, 2016      |  |  | $            | 0.04500
|July 21, 2016      |  |  | $            | 0.04000
|August 25, 2016    |  |  | $            | 0.04000
|September 22, 2016 |  |  | $            | 0.04000
|October 20, 2016   |  |  | $            | 0.04000
|November 18, 2016  |  |  | $            | 0.04000
|December 20, 2016  |  |  | $            | 0.04000
|                   |  |  |              |        
|Fiscal 2015        |  |  |              |        
|January 20, 2015   |  |  | $            | 0.07545
|April 13, 2015     |  |  | $            | 0.11600
|April 29, 2015     |  |  | $            | 0.04000
|May 29, 2015       |  |  | $            | 0.04000
|June 29, 2015      |  |  | $            | 0.04000
|July 30, 2015      |  |  | $            | 0.04000
|August 28, 2015    |  |  | $            | 0.04000
|September 29, 2015 |  |  | $            | 0.04000
|October 22.2015    |  |  | $            | 0.04500
|November 25, 2015  |  |  | $            | 0.04500
|December 24, 2015  |  |  | $            | 0.04500







The
per share amount of distributions on Class A and Class T shares will likely differ
because of different allocations of class-specific expenses. For example, distributions on Class T shares will likely be lower
than on Class A shares because Class T shares are subject to an annual distribution fee for a period of time. From time to time,
we may also pay special interim distributions in the form of cash or shares of our common stock at the discretion of our board
of directors. For example, our board of directors may periodically declare stock distributions in order to reduce the net asset
value per share of a share class if necessary to ensure that we do not sell shares of the applicable class at a price per share,
after deducting upfront selling commissions, if any, that is below the net asset value per share of the applicable class. The
timing and amount of any future distributions to stockholders will be subject to applicable legal restrictions and the sole discretion
of our board of directors.



We
may fund our cash distributions to stockholders from any sources of funds legally available to us, including offering proceeds,
borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds
from the sale of assets, dividends or other distributions paid to us on





40







account of preferred and common equity investments in
portfolio companies and expense reimbursements from our Adviser. We have not established limits on the amount of funds we may
use from available sources to make distributions. To date, all distributions have been funded solely from net investment income
from operations and capital gains proceeds from the sale of assets.



It
is possible that a portion of the distributions we make will represent a return of capital. A return of capital generally is a
return of stockholders’ investment rather than a return of earnings or gains derived from our investment activities and
will be made after deducting the fees and expenses payable in connection with our continuous public offering, including any fees
payable to our Adviser. Moreover, a return of capital will generally not be taxable, but will reduce each stockholder’s
cost basis in our common stock, and will result in a higher reported capital gain or lower reported capital loss when the common
stock on which such return of capital was received is sold. Stockholders will be notified of the sources of our distributions
(i.e., paid from ordinary income, paid from net capital gains on the sale of securities, and/or a return of capital). See “Material
U.S. Federal Income Tax Considerations.”



We
intend to make our regular distributions in the form of cash, out of assets legally available for distribution, unless stockholders
elect to receive their distributions in additional shares of our common stock under our distribution reinvestment plan. Although
distributions paid in the form of additional shares of common stock will generally be subject to U.S. federal, state, and local
taxes in the same manner as cash distributions, stockholders who elect to participate in our distribution reinvestment plan will
not receive any corresponding cash distributions with which to pay any such applicable taxes. Stockholders receiving distributions
in the form of additional shares of common stock will be treated as receiving a distribution in the amount of the fair market
value of our shares of common stock. If stockholders hold shares in the name of a broker or financial intermediary, they should
contact such broker or financial intermediary regarding their option to elect to receive distributions in additional shares of
our common stock under our distribution reinvestment plan in lieu of cash.



To
obtain and maintain RIC tax treatment, we must, among other things, distribute at least 90% of our net ordinary income and realized
net short-term capital gain in excess of realized net long-term capital loss, if any. In order to avoid certain excise taxes imposed
on RICs, we currently intend to distribute, or be deemed to distribute, during each calendar year an amount at least equal to
the sum of (1) 98% of our net ordinary income for the calendar year, (2) 98% of our capital gain in excess of capital loss for
the one-year period ending on October 31 of the calendar year and (3) any net ordinary income and net capital gain for preceding
years that were not distributed during such years and on which we paid no U.S. federal excise tax. We can offer no assurance that
we will achieve results that will permit the payment of any distributions and, if we issue senior securities, we will be prohibited
from paying distributions if doing so causes us to fail to maintain the asset coverage ratios stipulated by the Company Act or
if distributions are limited by the terms of any of our borrowings.



We
have adopted an “opt in” distribution reinvestment plan for our common stockholders. As a result, if we make a distribution,
then stockholders will receive distributions in cash unless they specifically “opt in” to the distribution reinvestment
plan so as to have their cash distributions reinvested in additional shares of our common stock.



We
intend to use newly issued shares to implement the plan. The number of shares we will issue to you is determined by dividing the
total dollar amount of the distribution payable to you by a price equal to the net offering price in effect that shares of the
class are sold in the offering on such closing date, or if there is then no current offering, the most recent net asset value
per share of the class of the Company’s shares as determined by our board of directors.



There
will be no sales load or other sales charges to you if you elect to participate in the distribution reinvestment plan. We will
pay our Administrator’s fees for its services with respect to the plan.



If
you receive distributions in the form of stock, you generally are subject to the same federal, state and local tax consequences
as you would be had you elected to receive your distributions in cash. Your basis for determining gain or loss upon the sale of
stock received in a distribution from us will be equal to the total dollar amount of the distribution payable in cash. Any stock
received in a distribution will have a holding period for tax purposes commencing on the day following the day on which the shares
are credited to your account.





41







The
company’s net investment income (loss) on a tax basis for the years ended December 31, 2017, 2016 and 2015 was $(192,563),
$335,572, and $174,880, respectively. As of December 31, 2017, 2016, and 2015, the Company had $(2,126,246), $32,116, and $189,124,
respectively, of undistributed (overdistributed) net investment income and realized gains on a tax basis.



The
following table sets forth a reconciliation between GAAP-basis net investment income (loss) and tax-basis net investment income
(loss) during the years ended December 31, 2017, 2016 and 2015:





|                                                          |  | Year
    Ended December 31, |         
|--------------------------------------------------------- |  | --------------------------- | --------
|                                                          |  | 2017                        |         
|GAAP basis net investment income
    (loss)               |  | $                           | (192,229
|Reversal of incentive fee accrual on unrealized
    gains |  |                             | (334    
|Other book-tax differences                                |  |                             | -       
|Tax-basis net investment income (loss)                    |  | $                           | (192,563





The
determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s
fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. The actual
tax characteristics of distributions to stockholders are reported to stockholders annually on Form 1099-DIV.



As
of December 31, 2017, 2016 and 2015, the components of accumulated earnings on a tax basis were as follows:





|                                                                                      |  | Year
    Ended December 31, |           
|------------------------------------------------------------------------------------- |  | --------------------------- | ----------
|                                                                                      |  | 2017                        |           
|Distributable realized gains
    (long-term capital gains)                            |  | $                           | 65,363    
|Distributable ordinary income (loss) (income
    and short-term capital gains (loss)) |  |                             | (677,099  
|Net unrealized appreciation (depreciation)
    on investments                         |  |                             | (1,514,510
|Total                                                                                 |  | $                           | (2,126,246



There
is no material difference between the aggregate book cost and tax costs of the Company’s investments for federal income
tax purposes.



|Item
    6. | Selected Financial
    Data
|----------- | ---------------------------



The
following selected financial data for the year ended December 31, 2017, 2016, 2015, 2014 and 2013 is derived from our financial
statements. The following selected financial data for Triton Pacific Investment Company, Inc. should be read in conjunction with
“Item 7.—Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item
8. —Financial Statements and Supplementary Data” included elsewhere in this report.





42









|                                                                           |  |                         |            |   |                |   |            |      |  |   |           |   |  |      |           |   | Period from           |  
|-------------------------------------------------------------------------- |  | ----------------------- | ---------- | - | -------------- | - | ---------- | ---- |  | - | --------- | - |  | ---- | --------- | - | --------------------- | -
|                                                                           |  |                         |            |   |                |   |            |      |  |   |           |   |  |      |           |   | April 29, 2011        |  
|                                                                           |  | Year Ended December 31, |            |   | (Inception) to |  
|                                                                           |  | 2017                    |            |   | 2016           |   |            | 2015 |  |   | 2014      |   |  | 2013 |           |   | December 31, 2012 (x) |  
|Statements of operations data:                                             |  |                         |            |   |                |   |            |      |  |   |           |   |  |      |           |   |                       |  
|Total investment income                                                    |  | $                       | 817,448    |   |                | $ | 440,748    |      |  | $ | 176,042   |   |  | $    | 16,319    |   |                       | $
|Operating expenses                                                         |  |                         |            |   |                |   |            |      |  |   |           |   |  |      |           |   |                       |  
|Total operating expenses                                                   |  |                         | 1,090,524  |   |                |   | 741,022    |      |  |   | 620,548   |   |  |      | 249,465   |   |                       |  
|Less: Expense reimbursement from sponsor                                   |  |                         | (80,847    | ) |                |   | (671,062   | )    |  |   | (584,998  | ) |  |      | (249,357  | ) |                       |  
|Net operating expenses                                                     |  |                         | 1,009,677  |   |                |   | 69,960     |      |  |   | 35,550    |   |  |      | 108       |   |                       |  
|Net investment income (loss)                                               |  |                         | (192,229   | ) |                |   | 370,788    |      |  |   | 140,492   |   |  |      | 16,211    |   |                       |  
|Total net realized and unrealized gain (loss) on investments               |  |                         | (1,424,740 | ) |                |   | (156,351   | )    |  |   | 185,858   |   |  |      | 1,087     |   |                       |  
|Net increase (decrease) in net assets resulting from operations            |  | $                       | (1,616,969 | ) |                | $ | 214,437    |      |  | $ | 326,350   |   |  | $    | 17,298    |   |                       | $
|Per share data:                                                            |  |                         |            |   |                |   |            |      |  |   |           |   |  |      |           |   |                       |  
|Net investment income (loss)—basic(1)                                      |  | $                       | (0.16      | ) |                | $ | 0.48       |      |  | $ | 0.41      |   |  | $    | 0.14      |   |                       | $
|Net investment income (loss)—diluted(1)                                    |  |                         | (0.16      | ) |                |   | 0.48       |      |  |   | 0.41      |   |  |      | 0.14      |   |                       |  
|Net increase (decrease) in net assets resulting from operations—basic(1)   |  | $                       | (1.34      | ) |                | $ | 0.34       |      |  | $ | 0.82      |   |  | $    | 0.15      |   |                       | $
|Net increase (decrease) in net assets resulting from operations—diluted(1) |  |                         | (1.34      | ) |                |   | 0.34       |      |  |   | 0.82      |   |  |      | 0.15      |   |                       |  
|Distributions declared(2)                                                  |  | $                       | 0.45       |   |                | $ | 0.51       |      |  | $ | 0.57      |   |  | $    | -         |   |                       | $
|Balance sheet data:                                                        |  |                         |            |   |                |   |            |      |  |   |           |   |  |      |           |   |                       |  
|Total assets                                                               |  | $                       | 18,114,859 |   |                | $ | 14,565,014 |      |  | $ | 7,611,888 |   |  | $    | 3,667,097 |   |                       | $
|Total liabilities                                                          |  |                         | 1,265,622  |   |                |   | 1,336,312  |      |  |   | 285,235   |   |  |      | 569,193   |   |                       |  
|Total net assets                                                           |  | $                       | 16,849,237 |   |                | $ | 13,228,702 |      |  | $ | 7,326,653 |   |  | $    | 1,916,867 |   |                       | $
|Other data:                                                                |  |                         |            |   |                |   |            |      |  |   |           |   |  |      |           |   |                       |  
|Total return(3)                                                            |  |                         | -8.9       | % |                |   | 2.2        | %    |  |   | 6.1       | % |  |      | 0.0       | % |                       |  
|Number of portfolio company investments at period end                      |  |                         | 32         |   |                |   | 35         |      |  |   | 22        |   |  |      | 10        |   |                       |  
|Total portfolio investments for the period                                 |  | $                       | 7,112,875  |   |                | $ | 6,285,875  |      |  | $ | 4,270,750 |   |  | $    | 1,725,001 |   |                       | $
|Proceeds from sales and prepayments of investments                         |  | $                       | 4,308,024  |   |                | $ | 1,110,406  |      |  | $ | 414,971   |   |  | $    | 255,663   |   |                       | $
|                                                                           |  |                         |            |   |                |   |            |      |  |   |           |   |  |      |           |   |                       |  
|Weighted average common shares outstanding - basic and diluted             |  |                         | 1,203,418  |   |                |   | 777,680    |      |  |   | 339,304   |   |  |      | 114,991   |   |                       |  







| | (1) | The
per share data was derived by using the weighted average shares outstanding during the years ended December 31, 2017, 2016, 2015,
2014 and 2013, respectively.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | The
per share data for distributions reflects the actual amount of distributions paid per share during the applicable period.
| | --- | -----------------------------------------------------------------------------------------------------------------------------



| | (3) | The
total return for each year presented was calculated by taking the net asset value per share as of the end of the applicable year,
adding the cash distributions per share which were declared during the applicable year.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | Item
                            7. | Management’s
                                         Discussion and Analysis of Financial Condition and Results of Operations Statement Regarding Forward-Looking
        Information
| | ----------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The following discussion and analysis should be read in conjunction
with our financial statements and related notes and other financial information appearing elsewhere in this annual report on Form
10-K.



Except as otherwise
specified, references to “we,” “us,” “our,” or the “Company,” refer to Triton Pacific
Investment Corporation, Inc.



Forward-Looking Statements



Some of the statements
in this annual report on Form 10-K constitute forward-looking statements, which relate to future events or our performance or financial
condition. The forward-looking statements contained in this annual report on Form 10-K involve risks and uncertainties, including,
but not limited to, statements as to:



| | ● | our
future operating results;
| | - | -----------------------------

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

| | ● | changes
in the economy;
| | - | -----------------------

| | ● | risk
associated with possible disruptions in our operations or the economy generally;
| | - | -------------------------------------------------------------------------------------

| | ● | the
effect of investments that we expect to make;
| | - | -------------------------------------------------

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

| | ● | actual
and potential conflicts of interest with Triton Pacific Adviser, LLC and its affiliates;
| | - | -----------------------------------------------------------------------------------------------

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

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





43









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

| | ● | the
adequacy of our financing sources and working capital;
| | - | ----------------------------------------------------------

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

| | ● | the
ability of Triton Pacific Adviser, LLC and its Sub-Adviser to locate suitable investments for us and to monitor and administer
our investments;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | ● | the
ability of Triton Pacific Adviser, LLC, its Sub-Adviser and its affiliates to attract and retain highly talented professionals;
| | - | -----------------------------------------------------------------------------------------------------------------------------------

| | ● | our
ability to qualify and maintain our qualification as a RIC and as a BDC; and
| | - | --------------------------------------------------------------------------------

| | ● | the
effect of changes in laws or regulations affecting our operations or to tax legislation and our tax position.
| | - | -----------------------------------------------------------------------------------------------------------------



Such forward-looking
statements may include statements preceded by, followed by or that otherwise include the words “trend,” “opportunity,”
“pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,”
“intention,” “estimate,” “position,” “assume,” “potential,” “outlook,”
“continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,”
and similar expressions, or future or conditional verbs such as “will,” “would,” “should,”
“could,” “may,” or similar expressions. The forward looking statements contained in this annual report
involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking
statements for any reason, including the factors set forth as “Risk Factors” in this annual report on Form 10-K and
in our last post-effective, amended registration statement filed on form N-2 dated May 2, 2017, filed with the SEC on May 2, 2017.



We have based the forward-looking
statements included in this report on information available to us on the date of this report, and we assume no obligation to update
any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements,
and future results could differ materially from historical performance. Although we undertake no obligation to revise or update
any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult
any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with
the SEC, including quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K.



Overview



We are a publicly registered,
non-traded fund focused on private equity, structured as a business development company that primarily makes equity, structured
equity, and debt investments in small to mid-sized private U.S. companies.  Structured equity refers to derivative investment
products, including convertible notes and warrants, designed to facilitate highly customized risk-return objectives. Our private
equity investments will generally take the form of direct investments in common and preferred equity, as well as structured equity
investments such as convertible notes and warrants. We are an externally managed, closed-end, non-diversified management investment
company that has elected to be treated as a business development company under the Company Act. Triton Pacific Adviser, LLC (“Triton
Pacific Adviser”), which is a registered investment adviser under the Investment Advisers Act of 1940, as amended, (the “Advisers
Act”) serves as our investment adviser and TFA Associates, LLC serves as our administrator. Each of these companies is affiliated
with Triton Pacific Group, Inc., a private equity investment management firm, and its subsidiary, Triton Pacific Capital Partners,
LLC (“TPCP”), a private equity investment fund management company, each focused on debt and equity investments in small
to mid-sized private companies.



We primarily make debt investments likely
to generate current income and equity investments in small to mid-sized private U.S. companies either alone or together with other
private equity sponsors. Our investment objective is to generate current income and long-term capital appreciation.



Triton Pacific Adviser
is responsible for sourcing potential investments, conducting due diligence on prospective investments, analyzing investment opportunities,
structuring investments and monitoring our portfolio on an ongoing basis. In addition, we have elected and intend to annually qualify
to be treated, for U.S. federal income tax purposes, as a regulated investment company (“RIC”), under subchapter M
of the Internal Revenue Code of 1986, as amended (the “Code”).





44









Our investment objectives
are to maximize our investment portfolio’s total return by generating long-term capital appreciation from our private equity
investments and current income from our debt investments. We intend to make both our debt and private equity investments in small
to mid-sized private U.S. companies either alone or together with other private equity sponsors.



We are offering for
sale a maximum of $300,000,000 of our common stock. We commenced our initial continuous public
offering of shares through our initial registration statement (File No. 333-174873) that was declared effective by the SEC on September
4, 2012. Rule 415 promulgated under the Securities Act requires that a registration statement not be used for more than three years
from its effective date, subject to a 180-day grace period. On September 2, 2015, we filed a registration statement with the SEC
(File No. 333-206730) in order to continue our continuous public offering of shares for an additional three years or until all
of the shares registered herein are sold. The registration statement for our follow-on offering was declared effective by the SEC
on March 17, 2016 and our most-recent post-effective amendment to our registration was declared effective by the SEC on May 3,
2017. As of April 2, 2018, we have sold a total of 1,486,166.98 shares of common stock for gross proceeds of approximately
$21,818,725, including shares issued pursuant to our distribution reinvestment plan in the amount of $686,577, including the reduction
due to $604,017 in shares repurchased pursuant to the Company’s Repurchase Program, and 14,815 shares of common stock sold
to Triton Pacific Adviser in exchange for gross proceeds of $200,003.



Our investment objective
is to maximize our portfolio’s total return by generating current income from our debt investments and long-term capital appreciation
from our equity investments. We will seek to meet our investment objectives by:



-Focusing primarily on debt and
equity investments in small and mid-sized private U.S. companies, which we define as companies with annual revenue of from $10
million to $ 250 million at the time of investment;



-Leveraging the experience and
expertise of our Adviser, its Sub-Adviser and its affiliates in sourcing, evaluating and structuring transactions;



-Employing disciplined underwriting
policies and rigorous portfolio management;



-Developing our equity portfolio
through our Adviser’s Value Enhancement Program, more fully discussed below in “Investment Objectives and Policies
– Investment Process”; and



-Maintaining a well-balanced
portfolio.



We intend to be active
in both debt and equity investing. We will seek to provide current income to our investors through our debt investments while seeking
to enhance our investors’ overall returns through long term capital appreciation of our equity investments. We intend to
be opportunistic in our investment approach, allocating our investments between debt and equity, depending on:



-Investment opportunities



-Market conditions



-Perceived Risk



Depending on the amount
of capital we raise in the Offering and subject to subsequent changes in our capital base, we expect that our investments will
generally range between $250,000 and $25 million per portfolio company, although this range may change in the discretion of our
Adviser, subject to oversight by our board of directors. Prior to raising sufficient capital to finance investments in this range
and as a strategy to manage excess cash, we may make smaller and differing types of investments in, for example, high quality debt
securities, and other public and private yield-oriented debt and equity securities, directly and through our Sub-Adviser.





45









Our Adviser has engaged
ZAIS to act as our investment sub-adviser. ZAIS assists our Adviser with identifying, evaluating, negotiating and structuring syndicated
debt investments and makes investment recommendations for approval by our Adviser. ZAIS is a Delaware limited liability company
and is a registered investment adviser under the Advisers Act and had approximately $4.51 billion in assets under management as
of December 31, 2017. ZAIS is not an affiliate of us or our Adviser and does not own any of our shares.



We will generally source
our private equity investments through third party intermediaries and our debt investments primarily through our Adviser and Sub-Adviser.
We will invest only after we conduct a thorough evaluation of the risks and strategic opportunities of an investment and a price
(or interest rate in the case of debt investments) has been established that reflects the intrinsic value of the investment opportunity.
We will endeavor to identify the best exit strategy for each private equity investment, including methodology (for example, a sale,
company redemption, or public offering) and an appropriate time horizon. We will then attempt to influence the growth and development
of each portfolio company accordingly to maximize our potential return on investment using such exit strategy or another strategy
that may become preferable due to changing market conditions. We anticipate that the holding period for most of our private equity
investments will range from four to six years, but we will be flexible in order to take advantage of market opportunities or to
overcome unfavorable market conditions.



We intend to generate
the majority of our current income by investing in senior secured loans, second lien secured loans and, to a lesser extent, subordinated
loans of small to mid-sized private U.S. companies. We may purchase interests in loans through secondary market transactions in
the “over-the-counter” market for institutional loans or directly from our target companies as primary market investments.
In connection with our debt investments, we may on occasion receive equity interests such as warrants or options as additional
consideration. The senior secured and second lien secured loans in which we invest generally will have stated terms of three to
seven years and any subordinated investments that we make generally will have stated terms of up to ten years. However, there is
no limit on the maturity or duration of any security we may hold in our portfolio. The loans in which we intend to invest are often
rated by a nationally recognized ratings organization, and generally carry a rating below investment grade (rated lower than “Baa3”
by Moody’s Investors Service or lower than “BBB-” by Standard & Poor’s Corporation – also
known as “junk bonds”). However, we may also invest in non-rated debt securities.



As a BDC, we are subject
to certain regulatory restrictions in making our investments. For example, we generally will not be permitted to co-invest alongside
our Adviser, including TPCP and certain of its affiliates, unless we obtain an exemptive order from the SEC or the transaction
is otherwise permitted under existing regulatory guidance, such as syndicated transactions where price is the only negotiated term,
and approval from our independent directors. We have applied for an exemptive relief order for co-investments, though there is
no assurance that such exemptions will be granted, and in either instance, conflicts of interests with affiliates of our Adviser
might exist. Should such conflicts of interest arise, we and the Adviser have developed policies and procedures for dealing with
such conflicts which require the Adviser to (i) execute such transactions for all of the participating investment accounts, including
ours, on a fair and equitable basis, taking into account such factors as the relative amounts of capital available for new investments,
the then-current investment objectives and portfolio positions of each party, and any other factors deemed appropriate and (ii)
endeavor to obtain the advice of Adviser personnel not directly involved with the investment giving rise to the conflict as to
such appropriateness and other factors as well as the fairness to all parties of the investment and its terms. We intend to make
all of our investments in compliance with the Company Act and in a manner that will not jeopardize our status as a BDC or RIC.



As a BDC, we are permitted
under the Company Act to borrow funds to finance portfolio investments. To enhance our opportunity for gain, we intend to employ
leverage as market conditions permit, but, as required under the Company Act, in no event will our leverage exceed 50% of the value
of our assets. While we have not yet determined the amount of leverage we will use, we do not currently anticipate that we would
approach the 50% maximum level frequently or at all. The use of leverage, although it may increase returns, may also increase the
risk of loss to our investors, particularly if the level of our leverage is high and the value of our investments declines.



Revenues



We generate revenue
in the form of dividends, interest and capital gains on the debt securities and equity interests that we hold. In addition, we
may generate revenue from our portfolio companies in the form of



46







commitment, origination, structuring or diligence fees, monitoring
fees, fees for providing managerial assistance and possibly consulting fees and performance-based fees. Any such fees will be recognized
as earned.



Expenses



Our primary operating
expenses will be the payment of advisory fees and other expenses under the investment advisory agreement. The advisory fees will
compensate our Adviser for its work in identifying, evaluating, negotiating, executing, monitoring and servicing our investments.



We will bear all other
expenses of our operations and transactions, including (without limitation) fees and expenses relating to:



-corporate
and organizational expenses relating to offerings of our common stock, subject to limitations included in the investment advisory
and management services agreement;



-the cost
of calculating our net asset value, including the cost of any third-party valuation services;



-the cost
of effecting sales and repurchase of shares of our common stock and other securities;



-investment
advisory fees;



-fees payable
to third parties relating to, or associated with, making investments and valuing investments, including fees and expenses associated
with performing due diligence reviews of prospective investments;



-transfer
agent and custodial fees;



-fees and
expenses associated with marketing efforts;



-federal
and state registration fees;



-federal,
state and local taxes;



-independent
directors’ fees and expenses;



-costs of
proxy statements, stockholders’ reports and notices;



-fidelity
bond, directors and officers/errors and omissions liability insurance and other insurance premiums;



-direct costs
such as printing, mailing, long distance telephone, and staff;



-fees and
expenses associated with independent audits and outside legal costs, including compliance with the Sarbanes-Oxley Act;



-costs associated
with our reporting and compliance obligations under the Company Act and applicable federal and state securities laws;



-brokerage
commissions for our investments;



-legal, accounting
and other costs associated with structuring, negotiating, documenting and completing our investment transactions;





47









-all other
expenses incurred by our Adviser, in performing its obligations, subject to the limitations included in the investment advisory
agreement; and



-all other
expenses incurred by either our Administrator or us in connection with administering our business, including payments to our Administrator
under the administration agreement that will be based upon our allocable portion of its overhead and other expenses incurred in
performing its obligations under the administration agreement, including rent and our allocable portion of the costs of compensation
and related expenses of our chief executive officer, chief compliance officer and chief financial officer and their respective
staffs.



Reimbursement of TFA Associates, LLC
for Administrative Services



We will reimburse TFA
Associates for the administrative expenses necessary for its performance of services to us. Such costs will be reasonably allocated
to us on the basis of assets, revenues, time records or other reasonable methods. However, such reimbursement is made in an amount
equal to the lower of the Administrator’s actual costs or the amount that we would be required to pay for comparable administrative
services in the same geographic location. We will not reimburse our Administrator for any services for which it receives a separate
fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of
TFA Associates.



Portfolio and Investment Activity



During the year ended
December 31, 2017, we made investments in portfolio companies totaling $7,112,875. During the same period, we sold investments
for proceeds of $1,171,394 and received principal repayments of $3,136,630. As of December 31, 2017, our investment portfolio,
with a total fair value of $12,035,538, consisted of interests in 32 portfolio companies (63.9% in first lien senior secured loans,
31.6% in second lien senior secured loans, and 4.5% in equity). The portfolio companies that comprised our portfolio as of such
date had an average annual EBITDA of approximately $162.3 million. As of December 31, 2017, the investments in our portfolio were
purchased at a weighted average price of 98.3% of par or stated value, the weighted average credit rating of the investments in
our portfolio that were rated (constituting 95.5% of our portfolio based on the fair value of our investments) was B2 based upon
the Moody’s scale. Our estimated gross annual portfolio yield was 7.06% based upon the amortized cost of our investments
and was 7.78% on the debt portfolio alone. Our gross annual portfolio yield represents the expected yield to be generated by us
on our investment portfolio based on the composition of our portfolio as of December 31, 2017. The portfolio yield does not represent
an actual investment return to stockholders.



Total Portfolio Activity



The following tables
present certain selected information regarding our portfolio investment activity for the years ended December 31, 2017, 2016 and
2015:





|                        |  | Year Ended December 31, |            
|----------------------- |  | ----------------------- | -----------
|Net Investment Activity |  | 2017                    |            
|Purchases               |  | $                       | 7,112,875  
|Sales and Redemptions   |  |                         | (4,308,024)
|Net Portfolio Activity  |  | $                       | 2,804,851  





The following table
presents the composition of the total purchases for the years ended December 31, 2017, 2016 and 2015.





48











|                                 |  | December 31, 2017 |           |  | December 31, 2016        |  |      | December 31, 2015 | 
|-------------------------------- |  | ----------------- | --------- |  | ------------------------ |  | ---- | ----------------- | 
|                                 |  | Purchases         |           |  | Percentage of  Portfolio |  |      | Purchases         | 
|Senior Secured Loans—First Lien  |  | $                 | 4,392,250 |  |                          |  | 62%  |                   | 
|Senior Secured Loans—Second Lien |  |                   | 2,720,625 |  |                          |  | 38%  |                   | 
|Subordinated Debt                |  |                   | -         |  |                          |  | 0%   |                   | 
|Equity/Other                     |  |                   | -         |  |                          |  | 0%   |                   | 
|Total                            |  | $                 | 7,112,875 |  |                          |  | 100% |                   | 





The
following tables summarize the composition of our investment portfolio at amortized cost and fair value as of December 31, 2017,
2016 and 2015:





|                                    |  | December 31, 2017                 |            | December 31, 2016          |  | December 31, 2015                       
|----------------------------------- |  | --------------------------------- | ---------- | -------------------------- |  | ----------------------------------------
|                                    |  | Investments at Amortized 
Cost(1) |            | Investments at 
Fair Value |  | Fair Value Percentage of Total Portfolio
|Senior Secured Loans—First
    Lien |  | $                                 | 7,714,423  |                            |  |                                         
|Senior Secured Loans—Second Lien    |  |                                   | 3,919,236  |                            |  |                                         
|Subordinated Debt                   |  |                                   | 666,389    |                            |  |                                         
|Equity/Other                        |  |                                   | 1,250,000  |                            |  |                                         
|Total                               |  | $                                 | 13,550,048 |                            |  | $                                       





| | (1) | Amortized
                                         cost represents the original cost adjusted for the amortization of premiums and/or accretion
                                         of discounts, as applicable, on investments.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|                                                                         | December 31, 
2017 |  | December 31, 
2016 |  | December 31, 
2015 |  | December 31, 
2014
|------------------------------------------------------------------------ | ------------------ |  | ------------------ |  | ------------------ |  | ------------------
|Number of Portfolio Companies                                            | 32                 |  | 35                 |  | 22                 |  | 10                
|% Variable Rate (based on fair value)                                    | 100.0%             |  | 82.3%              |  | 62.1%              |  | 100.0%            
|% Fixed Rate (based on fair value)                                       | 0.0%               |  | 6.1%               |  | 11.0%              |  | 0.0%              
|% Non-Income Producing Equity or Other Investments (based on fair value) | 4.5%               |  | 11.6%              |  | 26.9%              |  | 0.0%              
|Average Annual EBITDA of Portfolio Companies                             | 162.3MM            |  | 114.6MM            |  | $101.6MM           |  | $96.0 MM          
|Weighted Average Credit Rating of Investments that were Rated            | B2                 |  | B2                 |  | B2                 |  | B2                
|% of Investments on Non-Accrual                                          | —                  |  | —                  |  | —                  |  | —                 
|Gross Portfolio Yield Prior to Leverage (based on amortized cost)        |                    |  | 6.7%               |  | 5.4%               |  | 6.0%              



The
table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio
assets in such industries as of December 31, 2017, 2016 and 2015:





49











|                                         |  | December 31, 2017 |            |  | December 31, 2016       |  |        | December 31, 2015 | 
|---------------------------------------- |  | ----------------- | ---------- |  | ----------------------- |  | ------ | ----------------- | 
|Industry Classification                  |  | Fair Value        |            |  | Percentage of Portfolio |  |        | Fair Value        | 
|Automotive Repair, Services, and Parking |  | $                 | -          |  |                         |  | 0.0%   |                   | 
|Beverage, Food & Tobacco                 |  |                   | 1,618,327  |  |                         |  | 13.4%  |                   | 
|Business Services                        |  |                   | 4,325,419  |  |                         |  | 35.8%  |                   | 
|Consumer Services                        |  |                   | 1,671,168  |  |                         |  | 13.9%  |                   | 
|Energy: Oil & Gas                        |  |                   | 337,488    |  |                         |  | 2.8%   |                   | 
|Healthcare & Pharmaceuticals             |  |                   | 734,869    |  |                         |  | 6.1%   |                   | 
|High Tech Industries                     |  |                   | 833,178    |  |                         |  | 6.9%   |                   | 
|Hotel, Gaming & Leisure                  |  |                   | 352,809    |  |                         |  | 2.9%   |                   | 
|Media: Diversified and Production        |  |                   | 334,586    |  |                         |  | 2.8%   |                   | 
|Metals & Mining                          |  |                   | 1,143,870  |  |                         |  | 9.5%   |                   | 
|Paper and Allied Products                |  |                   | -          |  |                         |  | 0.0%   |                   | 
|Retail                                   |  |                   | -          |  |                         |  | 0.0%   |                   | 
|Specialty Finance                        |  |                   | -          |  |                         |  | 0.1%   |                   | 
|Telecommunications                       |  |                   | 496,322    |  |                         |  | 4.2%   |                   | 
|Transportation: Cargo                    |  |                   | -          |  |                         |  | 0.0%   |                   | 
|Wholesale Trade-Durable Goods            |  |                   | -          |  |                         |  | 0.0%   |                   | 
|Wholesale Trade-Nondurable Goods         |  |                   | 187,502    |  |                         |  | 1.6%   |                   | 
|Total                                    |  | $                 | 12,035,538 |  |                         |  | 100.0% |                   | 





We
do not “control” any of our portfolio companies, each as defined in the Company Act. We are an affiliate of two portfolio
companies, Javlin Capital, LLC (held through TPJ Holdings, Inc. and a convertible note) and Injured Workers Pharmacy, LLC (held
through ACON IWP Investors I, L.L.C.). In general, under the Company Act, we would be presumed to “control” a portfolio
company if we owned 25% or more of its voting securities and would be an “affiliate” of a portfolio company if we
owned 5% or more of its voting securities.



Portfolio
Asset Quality



In
addition to various risk management and monitoring tools, our Subadviser uses an investment rating system to characterize and
monitor the expected level of returns on each investment in our debt portfolio. All of the investments included in our Subadviser’s
rating systems refer to non-rated debt securities or rated debt securities that carry a rating below investment grade (rated lower
than “Baa3” by Moody’s Investors Service or lower than “BBB-” by Standard & Poor’s Corporation
also known as “junk bonds”). These ratings are on a scale of 1 to 8 as follows:



| | 1 | Highest
                                         quality obligors, minimal medium-term default risk; possibly moving towards investment
                                         grade status.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2 | High
                                         quality obligors, but not likely to move towards investment grade in the medium term;
                                         performing at or in excess of expected levels; solid liquidity; conservative credit statistics.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3 | Credits
                                         of with a history of performing with leverage (repeat issuers); moderate credit statistics
                                         currently performing at or in excess of expected levels; solid liquidity; no expectation
                                         of covenant defaults or third party ratings downgrades.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4 | Credits
                                         new to the leveraged loan universe; currently performing within a range of expected performance;
                                         moderate to aggressive credit statistics.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 5 | Credits
                                         new to the leveraged loan universe; currently performing within a range of expected performance;
                                         aggressive credit statistics or weak industry characteristics.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 6 | Credits
                                         placed in this category are experiencing potential liquidity problems but the issues
                                         are not imminent (more than 12 months).
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 7 | Credits
                                         placed in this category are experiencing nearer-term liquidity problems (within 12 months).
| | - | --------------------------------------------------------------------------------------------------------------------------------------------



| | 8 | Credits
                                         placed in this category have experienced either a technical or actual payment default
                                         which may require a write-down within our respective portfolios.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





50







Categories
1 through 5 are performing in line with expectation, while categories 6-8 are closely watched for or have experienced liquidity
problems and/or default.



The
following table shows the distribution of our investments on the 1 to 8 scale at fair value as of December 31, 2017, 2016 and
2015:





|                  |  |  | December 31, 2017 |            |  | December 31, 2016 |  |        | December 31, 2015 | 
|----------------- |  |  | ----------------- | ---------- |  | ----------------- |  | ------ | ----------------- | 
|Investment Rating |  |  | Fair Value        |            |  | Percentage        |  |        | Fair Value        | 
|1                 |  |  | $                 | -          |  |                   |  | 0.0%   |                   | 
|2                 |  |  |                   | 486,150    |  |                   |  | 4.2%   |                   | 
|3                 |  |  |                   | 4,067,859  |  |                   |  | 35.4%  |                   | 
|4                 |  |  |                   | 2,975,871  |  |                   |  | 25.9%  |                   | 
|5                 |  |  |                   | 3,508,571  |  |                   |  | 30.5%  |                   | 
|6                 |  |  |                   | 459,184    |  |                   |  | 4.0%   |                   | 
|7                 |  |  |                   | -          |  |                   |  | 0.0%   |                   | 
|8                 |  |  |                   | -          |  |                   |  | 0.0%   |                   | 
|                  |  |  | $                 | 11,497,635 |  |                   |  | 100.0% |                   | 







On
June 30, 2017, The Company made the decision to write down the carrying value of its investment in Javlin Financial LLC (“Javlin
Financial”). The decision was due to performance issues within Javlin Financial’s core business and a breakdown in
restructuring negotiations between the Company, its lenders, and Javlin Financial’s controlling shareholder. It is unknown
at this time if there will be any value to the investment.



Results
of Operations



Investment
Income



For
the years ended December 31, 2017, 2016 and 2015, we generated $817,448, $440,748, and $176,042 respectively, in investment income
in the form of interest and fees earned on debt portfolio. Such revenues represent $766,194 of cash income and $51,254 in non-cash
portions related to the accretion of discounts and paid-in-kind interest for the year ended December 31, 2017. For the year ended
December 31, 2016, such revenues represent $384,234 of cash income and $56,514 in non-cash portions related to the accretion of
discounts and paid-in-kind interest. For the year ended December 31, 2015 such revenues represent $159,939 of cash income and
$16,103 in non-cash portions related to the accretion of discounts and paid-in-kind interest.



Operating
Expenses



Total
operating expenses before reimbursement from the sponsor totaled $1,090,524 for the year ended December 31, 2017, and consisted
of base management fees, adviser and administrator reimbursements, professional fees, insurance expense, directors’ fees
and other general and administrative fees. The base management fees for the year were $334,224 and the incentive fees for the
year were ($334). Pursuant to the Expense Reimbursement Agreement (discussed below), the sponsor reimbursed the Company $80,847
for the year ended December 31, 2017.



Total
operating expenses before reimbursement from the sponsor totaled $741,022 for the year ended December 31, 2016, and consisted
of base management fees, adviser and administrator reimbursements, professional fees, insurance expense, directors’ fees
and other general and administrative fees. The base management fees for the year were $225,492 and the incentive fees for the
year were ($35,216). Pursuant to the Expense Reimbursement Agreement (discussed below), the sponsor reimbursed the Company $671,062
for the year ended December 31, 2016.





51







Total
operating expenses before reimbursement from the sponsor totaled $620,548 for the year ended December 31, 2015, and consisted
of base management fees, adviser and administrator reimbursements, professional fees, insurance expense, directors’ fees
and other general and administrative fees. The base management fees for the year were $101,336 and the incentive fees for the
year were $37,014. Pursuant to the Expense Reimbursement Agreement (discussed below), the sponsor reimbursed the Company $584,998
for the year ended December 31, 2015.



Our
other general and administrative expenses totaled $27,459, $17,718, and $19,861 for the years ended December 31, 2017, 2016, and
2015, respectively, and consisted of the following:





|                     |  | Year Ended December 31, |       
|-------------------- |  | ----------------------- | ------
|                     |  | 2017                    |       
|Licenses and permits |  | $                       | 413   
|Taxes                |  |                         | 1,103 
|Printing fees        |  |                         | 10,374
|Outside Services     |  |                         | 12,719
|Travel expenses      |  |                         | 1,056 
|Other                |  |                         | 1,794 
|Total                |  | $                       | 27,459





Net
Investment Income



Our
net investment income (loss) totaled ($192,229), $370,788, and $140,492 (($0.16), $0.48, and $0.41 per share based on weighted
average shares outstanding, respectively) for the years ended December 31, 2017, 2016 and 2015, respectively.



Net
Realized Gains/Losses from Investments



We
measure realized gains or losses by the difference between the net proceeds from the disposition and the amortized cost basis
of investment, without regard to unrealized gains or losses previously recognized.



For
the year ended December 31, 2017, we received proceeds from sales and repayments of $4,308,024, from which we realized a net gain
of $91,436. For the year ended December 31, 2016, we received proceeds from sales and repayments of $1,110,406, from which we
realized a net gain of $19,731. For the year ended December 31, 2015, we received proceeds from sales and repayments of $414,971,
from which we realized a net gain of $7,321.



Net
Unrealized Appreciation/Depreciation on Investments



Net
change in unrealized appreciation on investments reflects the net change in the fair value of our investment portfolio. For the
years ended December 31, 2017, 2016 and 2015, net unrealized appreciation (depreciation) totaled ($1,516,176), ($176,082), and
$178,537, respectively.



On
June 30, 2017, the Company made the decision to write down the carrying value of its investment in Javlin Financial. The decision
was due to performance issues within Javlin Financial’s core business and a breakdown in restructuring negotiations between
the Company, its lenders, and Javlin Financial’s controlling shareholder. It is unknown at this time if there will be any
value to the investment.



Changes
in Net Assets from Operations



For
the year ended December 31, 2017, we recorded a net income of ($1,616,969) versus net income of $214,437 for the year ended December
31, 2016 and net income of $326,350 for the year ended December 31, 2015.





52







Based
on 1,203,418.47 weighted average common shares outstanding for the year ended December 31, 2017, basic and diluted, our per share
net decrease in net assets resulting from operations was ($1.34) for the year ended December 31, 2017.



Based
on 777,680 weighted average common shares outstanding for the year ended December 31, 2016, basic and diluted, our per share net
increase in net assets resulting from operations was $0.28 for the year ended December 31, 2016.



Based
on 339,304 weighted average common shares outstanding for the year ended December 31, 2015, basic and diluted, our per share net
increase in net assets resulting from operations was $0.96 for the year ended December 31, 2015.



Financial
Condition, Liquidity and Capital Resources



We
will generate cash primarily from the net proceeds of our offering, and from cash flows from fees (such as management fees), interest
and dividends earned from our investments and principal repayments and proceeds from sales of our investments. Our primary use
of funds will be investments in companies, and payments of our expenses and distributions to holders of our common stock.



The
offering of our common stock represents a continuous offering of our shares. The initial offering of our common stock commenced
on September 4, 2012 and terminated on March 1, 2016. On March 17, 2016, we commenced the follow-on offering of our common stock,
which follow-on offering is currently ongoing. We intend to file post-effective amendments to our registration statement to allow
us to continue our offering for three years. The Dealer Manager is not required to sell any specific number or dollar amount of
shares but will use its best efforts to sell the shares offered. The minimum investment in shares of our common stock is $5,000.



The
current offering price for our shares is $13.21 per share; however, to the extent our net asset value increases, we will sell
at a price necessary to ensure that shares are not sold at a price per share, after deduction of selling commissions and dealer
manager fees, that is below our net asset value per share. In connection with each closing, our board of directors or a committee
thereof is required, within 48 hours of the time that each closing and sale is made, to make the determination that we are not
selling shares of any class of our common stock at a price per share which, after deducting upfront selling commissions, if any,
is below the then-current net asset value per share of the applicable class. Promptly following any such adjustment to the offering
price per share, we will file a prospectus supplement with the SEC disclosing the adjusted offering price, and we appropriately
publish the updated information. The Dealer Manager for this offering is an affiliate of our Adviser.



During
the year ended December 31, 2017, we sold 463,424.18 shares of our common stock for gross proceeds of $6,677,290 at an average
price per share of $14.41. The gross proceeds received during the year ended December 31, 2017 include reinvested stockholder
distributions of $291,697 for which we issued 22,461.05 shares of common stock. The sales commissions and dealer manager fees
related to the sale of our common stock were $606,188 for the year ended December 31, 2017. These sales commissions and fees include
$122,150 retained by the dealer manager, Triton Pacific Securities, LLC, which is an affiliate of ours. Our
offering expenses are capitalized as deferred offering expenses and then subsequently expensed over a 12-month period



We
may borrow funds to make investments at any time, including before we have fully invested the proceeds of our offering, to the
extent we determine that additional capital would allow us to take advantage of investment opportunities, or if our board of directors
determines that leveraging our portfolio would be in our best interests and the best interests of our stockholders. We have not
yet decided, however, whether, and to what extent, we will finance portfolio investments using debt. We do not currently anticipate
issuing any preferred stock.



Contractual
Obligations



We
have entered into certain contracts under which we have material future commitments. On July 27, 2012, we entered into the investment
advisory agreement with Triton Pacific Adviser, LLC in accordance with the





53







1940 Act. The investment advisory agreement became
effective on June 25, 2014, the date that we met the minimum offering requirement. Triton Pacific Adviser serves as our investment
advisor in accordance with the terms of our investment advisory agreement. Payments under our investment advisory agreement in
each reporting period will consist of (i) a management fee equal to a percentage of the value of our gross assets and (ii) a capital
gains incentive fee based on our performance.



On
July 27, 2012, we entered into the administration agreement with TFA Associates, LLC pursuant to which TFA Associates furnishes
us with administrative services necessary to conduct our day-to-day operations. TFA Associates is reimbursed for administrative
expenses it incurs on our behalf in performing its obligations. Such costs are reasonably allocated to us on the basis of assets,
revenues, time records or other reasonable methods. We do not reimburse TFA Associates for any services for which it receives
a separate fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling
person of TFA Associates. At the time of our offering, our Administrator has contracted with Bank of New York Mellon and affiliated
entities to provide additional administrative services, while we have directly engaged Bank of New York Mellon and affiliated
entities to act as our custodian. We have also contracted with Phoenix American Financial Services to act as our transfer agent,
plan administrator, distribution paying agent and registrar.



If
any of our contractual obligations discussed above are terminated, our costs may increase under any new agreements that we enter
into as replacements. We would also likely incur expenses in locating alternative parties to provide the services we expect to
receive under the investment advisory agreement and administration agreement. Any new investment advisory agreement would also
be subject to approval by our stockholders.



Off-Balance
Sheet Arrangements



Other
than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have any off-balance
sheet financings or liabilities.



Distributions



We
elected to be treated, beginning with our fiscal year ending December 31, 2012, and intend to qualify annually thereafter, as
a RIC under the Code. To obtain and maintain RIC tax treatment, we must, among other things, distribute at least 90% of our net
ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to our stockholders. In order
to avoid certain excise taxes imposed on RICs, we must distribute during each calendar year an amount at least equal to the sum
of: (i) 98% of our ordinary income for the calendar year, (ii) 98.2% of our capital gains in excess of capital losses for the
one-year period generally ending on October 31 of the calendar year (unless an election is made by us to use our taxable year)
and (iii) any ordinary income and net capital gains for preceding years that were not distributed during such years and on which
we paid no federal income tax.



While
we intend to distribute any income and capital gains in the manner necessary to minimize imposition of the 4% U.S. federal excise
tax, sufficient amounts of our taxable income and capital gains may not be distributed to avoid entirely the imposition of the
tax. In that event, we will be liable for the tax only on the amount by which we do not meet the foregoing distribution requirement.



Our
board of directors has authorized, and has declared, cash distributions on our common stock on a monthly basis since the second
quarter of 2015. The amount of each such distributions is subject to our board of directors’ discretion and applicable legal
restrictions related to the payment of distributions. We calculate each stockholder’s specific distribution amount for the
month using record and declaration dates, and distributions will begin to accrue on the date we accept subscriptions for shares
of our common stock. From time to time, we may also pay interim distributions at the discretion of our board. Each year a statement
on Internal Revenue Service Form 1099-DIV (or any successor form) identifying the source of the distribution (i.e., paid from
ordinary income, paid from net capital gain on the sale of securities, and/or a return of paid-in capital surplus which is a nontaxable
distribution) will be mailed to our stockholders. Our distributions may exceed our earnings, especially during the





54







period
before we have substantially invested the proceeds from our offering. As a result, a portion of the distributions we make may
represent a return of capital for tax purposes.



We
have adopted an “opt in” distribution reinvestment plan for our common stockholders. As a result, when we make a distribution,
stockholders will receive distributions in cash unless they specifically “opt in” to the distribution reinvestment
plan so as to have their cash distributions reinvested in additional shares of our common stock. Any distributions reinvested
under the plan will nevertheless remain taxable to U.S. stockholders.



The
following table reflects the cash distributions per share that we have declared and paid on our common stock through December
31, 2017:





|                   |  |  | Distribution |        
|------------------ |  |  | ------------ | -------
|Fiscal 2017        |  |  | Per Share    |        
|January 27, 2017   |  |  | $            | 0.04000
|February 24, 2017  |  |  | $            | 0.04000
|March 23, 2017     |  |  | $            | 0.04000
|April 27, 2017     |  |  | $            | 0.04000
|May 25, 2017       |  |  | $            | 0.04000
|June 23, 2017      |  |  | $            | 0.04000
|July 21, 2017      |  |  | $            | 0.04000
|August 29, 2017    |  |  | $            | 0.03417
|September 28, 2017 |  |  | $            | 0.03417
|October 26, 2017   |  |  | $            | 0.03417
|November 27, 2017  |  |  | $            | 0.03370
|December 26, 2017  |  |  | $            | 0.03370
|                   |  |  |              |        
|Fiscal 2016        |  |  |              |        
|January 22, 2016   |  |  | $            | 0.04500
|February 16, 2016  |  |  | $            | 0.04500
|March 23, 2016     |  |  | $            | 0.04500
|April 21, 2016     |  |  | $            | 0.04500
|May 19, 2016       |  |  | $            | 0.04500
|June 23, 2016      |  |  | $            | 0.04500
|July 21, 2016      |  |  | $            | 0.04000
|August 25, 2016    |  |  | $            | 0.04000
|September 22, 2016 |  |  | $            | 0.04000
|October 20, 2016   |  |  | $            | 0.04000
|November 18, 2016  |  |  | $            | 0.04000
|December 20, 2016  |  |  | $            | 0.04000
|                   |  |  |              |        
|Fiscal 2015        |  |  |              |        
|January 20, 2015   |  |  | $            | 0.07545
|April 13, 2015     |  |  | $            | 0.11600
|April 29, 2015     |  |  | $            | 0.04000
|May 29, 2015       |  |  | $            | 0.04000
|June 29, 2015      |  |  | $            | 0.04000
|July 30, 2015      |  |  | $            | 0.04000
|August 28, 2015    |  |  | $            | 0.04000
|September 29, 2015 |  |  | $            | 0.04000
|October 22.2015    |  |  | $            | 0.04500
|November 25, 2015  |  |  | $            | 0.04500
|December 24, 2015  |  |  | $            | 0.04500



Our
distributions previously were paid quarterly in arrears. On January 15, 2015, our Board declared a quarterly cash distribution
for the fourth quarter of 2014 of $0.07545 per share payable on January 30, 2015, to shareholders of record as of January 20,
2015. In addition, on April 2, 2015, our Board declared a cash distribution for the first quarter of 2015 of $0.116 per share
payable on April 13, 2015, to shareholders of record as of April 6,





55







2015. Commencing in April 2015, and subject to our board of
directors’ discretion and applicable legal restrictions, our board of directors began to authorize and declare a monthly
distribution amount per share of our common stock, payable in advance. We then calculate each stockholder’s specific distribution
amount for the month using record and declaration dates, and distributions will begin to accrue on the date we accept subscriptions
for shares of our common stock. No distributions were declared for the years before 2015.



The
Company may fund its cash distributions to stockholders from any sources of funds legally available to it, including offering
proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains
proceeds from the sale of assets, dividends or other distributions paid to the Company on account of preferred and common equity
investments in portfolio companies and expense reimbursements from the Adviser. The Company has not established limits on the
amount of funds it may use from available sources to make distributions.



The
following table reflects the sources of the cash distributions on a tax basis that the Company paid on its common stock during
the years ended December 31, 2017 and 2016:





|                                                          |  | 2017                |         | 2016       |  | 2015               
|--------------------------------------------------------- |  | ------------------- | ------- | ---------- |  | -------------------
|Source of Distribution                                    |  | Distribution Amount |         | Percentage |  | Distribution Amount
|Offering proceeds                                         |  | $                   | -       |            |  |                    
|Borrowings                                                |  |                     | -       |            |  |                    
|Net investment income (prior to expense reimbursement)(1) |  |                     | -       |            |  |                    
|Short-term capital gains proceeds from the sale of assets |  |                     | 47,998  |            |  |                    
|Long-term capital gains proceeds from the sale of assets  |  |                     | -       |            |  |                    
|Distributions from common equity (return of capital)      |  |                     | 493,061 |            |  |                    
|Expense reimbursement from sponsor                        |  |                     | -       |            |  |                    
|Total                                                     |  | $                   | 541,059 |            |  |                    














|(1) | During the year ended December 31, 2017, 93.7% of the Company’s gross investment income was attributable to cash income earned, and 6.3% was attributable to non-cash accretion of discount and paid-in-kind interest.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





Related
Party Transactions



We
have entered into an investment and advisory agreement with Triton Pacific Adviser in which our senior management holds equity
interest. Members of our senior management also serve as principals of other investment managers affiliated with Triton Pacific
Adviser that do and may in the future manage investment funds, accounts or other investment vehicles with investment objectives
similar to ours.



We
have entered into an administration agreement with TFA Associates in which our senior management holds equity interest and act
as principals.



We
have entered into a dealer manager agreement with Triton Pacific Securities, LLC and will pay them a fee of up to 10% of gross
proceeds raised in the offering, some of which will be re-allowed to other participating broker-dealers. Triton Pacific Securities,
LLC is an affiliated entity of Triton Pacific Adviser.



We
have entered into a license agreement with Triton Pacific Group, Inc. under which Triton Pacific Group, Inc. has granted us a
non-exclusive, royalty-free license to use the name “Triton Pacific” for specified purposes in our business. Under
this agreement, we have the right to use the “Triton Pacific” name, subject to certain conditions, for so long as
Triton Pacific Adviser or one of its affiliates remains our investment advisor. Other than with respect to this limited license,
we have no legal right to the “Triton Pacific” name.



We
have entered into an expense support and conditional reimbursement agreement with Triton Pacific Adviser pursuant to which the
Adviser will pay up to 100% of the Company’s organization, offering and operating expenses, subject to repayment by us to
the Adviser, in order for the Company to achieve a reasonable level of expenses relative to its investment income, as determined
by the Company and the Adviser. our Adviser has agreed to make advances to us to cover certain of our operating expenses. (See
“Expense Reimbursement Agreement”, below.)





56







Management
Fee



Pursuant
to the investment advisory agreement, we pay our Adviser a fee for investment advisory and management services consisting of a
base management fee and an incentive fee.



The
base management fee is calculated at a quarterly rate of 0.5% of our average gross assets (including amounts borrowed for investment
purposes) and payable quarterly in arrears. For the first quarter of our operations, the base management fee was calculated based
on the initial value of our gross assets. Subsequently, the base management fee for any calendar quarter is calculated based on
the average value of our gross assets at the end of that and the immediately preceding quarters, appropriately adjusted for any
share issuances or repurchases during that quarter. The base management fee may or may not be taken in whole or in part at the
discretion of our Adviser. All or any part of the base management fee not taken as to any quarter shall be accrued without interest
and may be taken in such other quarter as our Adviser shall determine. The base management fee for any partial quarter will be
appropriately pro-rated.



Though,
in accordance with the Advisers Act, the Adviser could have received an incentive fee on both current income earned and income
from capital gains, the Adviser has agreed to waive any incentive fees from current income. As such, the Adviser will be paid
an incentive fee only upon the realization of a capital gain from the sale of an investment. The incentive fee will be calculated
and payable quarterly in arrears or as of the date of our liquidation or the termination of the investment advisory agreement,
and will equal 20% of our realized capital gains on a cumulative basis from inception through the end of each quarter, computed
net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any
previously paid capital gain incentive fees.



For
purposes of the foregoing: (1) the calculation of the incentive fee shall include any capital gains that result from cash distributions
that are treated as a return of capital, (2) any such return of capital will be treated as a decrease in our cost basis for the
relevant investment and (3) all fiscal year-end valuations will be determined by us in accordance with GAAP, applicable provisions
of the Company Act and our pricing procedures. In determining the incentive fee payable to our Adviser, we will calculate the
aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable,
with respect to each of the investments in our portfolio. For this purpose, aggregate realized capital gains, if any, will equal
the sum of the positive differences between the net sales prices of our investments, when sold, and the cost of such investments
since inception. Aggregate realized capital losses will equal the sum of the amounts by which the net sales prices of our investments,
when sold, is less than the original cost of such investments since inception. Aggregate unrealized capital depreciation will
equal the sum of the difference, if negative, between the valuation of each investment as of the applicable date and the original
cost of such investment. At the end of the applicable period, the amount of capital gains that serves as the basis for our calculation
of the capital gains incentive fee will equal the aggregate realized capital gains less aggregate realized capital losses and
less aggregate unrealized capital depreciation with respect to our portfolio investments. If this number is positive at the end
of such period, then the incentive fee for such period will be equal to 20% of such amount, less the aggregate amount of any incentive
fees paid in all prior periods.



While
the investment advisory agreement neither includes nor contemplates the inclusion of unrealized gains in the calculation of the
capital gains incentive fee, pursuant to an interpretation of an American Institute of Certified Public Accountants, or AICPA,
Technical Practice Aid for investment companies, we include unrealized gains in the calculation of the capital gains incentive
fee expense and related accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to
our Advisor as if our entire portfolio was liquidated at its fair value as of the balance sheet date even though our Adviser is
not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized.



The
organizational and offering expense and other expense reimbursements may include a portion of costs incurred by our Adviser or
its members or affiliates on our behalf for legal, accounting, printing and other offering expenses, including for marketing,
salaries and direct expenses of its employees, employees of its affiliates and others while engaged in registering and marketing
the shares of our common stock, which shall include development of marketing and marketing presentations and training and educational
meetings and generally coordinating the marketing process for us and may also include amounts reimbursed by us to our Dealer Manager
for actual bona fide due diligence expenses incurred by our Dealer Manager or participating broker-dealers in an aggregate amount
that is reasonable in relation to the gross proceeds raised in our offering and which are supported by detailed, itemized invoices.
None of the reimbursements referred to above will exceed actual expenses incurred by our Adviser, its





57







members or affiliates. Our
Adviser will reimburse to us, without recourse or reimbursement by us, any organizational and offering expenses to the extent
those expenses, when aggregated with sales load, exceed 15.0%.



Expense
Reimbursement Agreement



On
March 27, 2014, we and our Adviser agreed to an Expense Support and Conditional Reimbursement Agreement, or the Expense Reimbursement
Agreement. The Expense Reimbursement Agreement was amended and restated effective November 17, 2014. Under the Expense Reimbursement
Agreement, as amended, our Adviser, in consultation with the Company, may pay up to 100% of both our organizational and offering
expenses and our operating expenses, all as determined by us and our Adviser. As used in the Expense Reimbursement Agreement,
operating expenses refer to third party operating costs and expenses incurred by us, as determined under generally accepted accounting
principles for investment management companies. Organizational and offering expenses include expenses incurred in connection with
the organization of our company and expenses incurred in connection with our offering, which are recorded as a component of equity.
The Expense Reimbursement Agreement states that until the net proceeds to us from our offering are at least $25 million, our Adviser
will pay up to 100% of both our organizational and offering expenses and our operating expenses. After we received at least $25
million in net proceeds from our offering, our Adviser may, with our consent, continue to make expense support payments to us
in such amounts as are acceptable to us and our Adviser. Any expense support payments shall be paid by the Adviser to the Company
in any combination of cash, and/or offsets against amounts otherwise due from the Company to the Adviser.



Under
the Expense Reimbursement Agreement as amended, once we have received at least $25 million in net proceeds from our offering,we are required to reimburse our Adviser for any expense support payments we received from them occurring
within three years of the date on which we incurred such expenses However, with respect to any expense support payments
attributable to our operating expenses, (i) we will only reimburse our Adviser for expense
support payments made by our Adviser to the extent that the payment of such reimbursement (together with any other reimbursement
paid during such fiscal year) does not cause “other operating expenses” (as defined below) (on an annualized basis
and net of any expense reimbursement payments received by us during such fiscal year) to exceed the percentage of our average
net assets attributable to shares of our common stock represented by “other operating expenses” during the fiscal
year in which such expense support payment from our Adviser was made (provided, however, that this clause (i) shall not apply
to any reimbursement payment which relates to an expense support payment from our Adviser made during the same fiscal year); and
(ii) we will not reimburse our Adviser for expense support payments made by our Adviser if the annualized rate of regular cash
distributions declared by us at the time of such reimbursement payment is less than the annualized rate of regular cash distributions
declared by us at the time our Adviser made the expense support payment to which such reimbursement relates. “Other operating
expenses” means our total operating expenses excluding base management fees, incentive fees, organization and offering expenses,
financing fees and costs, interest expense, brokerage commissions and extraordinary expenses.



In
addition, with respectto any expense support
payment attributable to our organizational and offering expenses, we will only reimburse
our Adviser for expense support payments made by our Adviser to the extent that the payment of such reimbursement (together with
any other reimbursement for organizational and offering expenses paid during such fiscal year) is limited to 15% of cumulative
gross sales proceeds including the sales load (or dealer manager fee) paid by us.



Under
the Expense Reimbursement Agreement, any unreimbursed expense support payments may be reimbursed by us within a period not to
exceed three years from the end of the quarter in which we incurred the expense.



We
or our Adviser may terminate the expense reimbursement agreement at any time upon thirty days’ written notice. The expense
reimbursement agreement will automatically terminate upon termination of the Investment Advisory Agreement or upon our liquidation
or dissolution.





58







The
Expense Reimbursement Agreement is, by its terms, effective retroactively to our inception date of April 29, 2011. As a result,
our Adviser has agreed to reimburse a total of $5,292,191 as of December 31, 2017.



Below
is a table that provides information regarding expense support payments incurred by our Adviser pursuant to the Expense Support
Agreement as well as other information relating to our ability to reimburse our Adviser for such payments:





|Quarter
    Ended      |  | Amount
    of Expense 
Payment Obligation |  | Amount
    of Offering Cost 
Payment Obligation |  | Operating
    Expense
Ratio as of the 
Date Expense 
Payment Obligation
Incurred(1) |  | Annualized
    Distribution 
Rate as of the Date
Expense Payment 
Obligation Incurred(2) |  | Eligible
    for 
Reimbursement 
Through
|---------------------- |  | ----------------------------------------- |  | ----------------------------------------------- |  | ----------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------- |  | ----------------------------------------
|September
    30, 2012 |  | $21,826                                   |  |                                                 |  | 432.69%                                                                             |  | -                                                                                        |  | September
    30, 2015                  
|December
    31, 2012  |  | $26,111                                   |  |                                                 |  | 531.09%                                                                             |  | -                                                                                        |  | December
    31, 2015                   
|March
    31, 2013     |  | $30,819                                   |  |                                                 |  | N/A                                                                                 |  | -                                                                                        |  | March
    31, 2016                      
|June
    30, 2013      |  | $59,062                                   |  |                                                 |  | N/A                                                                                 |  | -                                                                                        |  | June
    30, 2016                       
|September
    30, 2013 |  | $65,161                                   |  |                                                 |  | N/A                                                                                 |  | -                                                                                        |  | September
    30, 2016                  
|December 31, 2013      |  | $91,378                                   |  |                                                 |  | 455.09%                                                                             |  | -                                                                                        |  | December 31, 2016                       
|March
    31, 2014     |  | $68,293                                   |  |                                                 |  | 148.96%                                                                             |  | -                                                                                        |  | March
    31, 2017                      
|June
    30, 2014      |  | $70,027                                   |  | $898,518                                        |  | 23.17%                                                                              |  | -                                                                                        |  | June
    30, 2017                       
|September
    30, 2014 |  | $92,143                                   |  | $71,060                                         |  | 20.39%                                                                              |  | -                                                                                        |  | September
    30, 2017                  
|December
    31, 2014  |  | $115,777                                  |  | $90,860                                         |  | 11.15%                                                                              |  | -                                                                                        |  | December
    31, 2017                   
|March
    31, 2015     |  | $134,301                                  |  | $106,217                                        |  | 13.75%                                                                              |  | 2.01%                                                                                    |  | March
    31, 2018                      
|June
    30, 2015      |  | $166,549                                  |  | $167,113                                        |  | 14.10%                                                                              |  | 3.20%                                                                                    |  | June
    30, 2018                       
|September
    30, 2015 |  | $147,747                                  |  | $240,848                                        |  | 10.45%                                                                              |  | 3.20%                                                                                    |  | September
    30, 2018                  
|December
    31, 2015  |  | $136,401                                  |  | $280,376                                        |  | 7.41%                                                                               |  | 3.60%                                                                                    |  | December
    31, 2018                   
|March
    31, 2016     |  | $157,996                                  |  | $232,895                                        |  | 6.00%                                                                               |  | 3.52%                                                                                    |  | March
    31, 2019                      
|June
    30, 2016      |  | $206,933                                  |  | $285,878                                        |  | 4.95%                                                                               |  | 3.52%                                                                                    |  | June
    30, 2019                       
|September
    30, 2016 |  | $201,573                                  |  | $223,020                                        |  | 4.52%                                                                               |  | 3.13%                                                                                    |  | September
    30, 2019                  
|December
    31, 2016  |  | $104,561                                  |  | $168,876                                        |  | 4.45%                                                                               |  | 3.11%                                                                                    |  | December
    31, 2019                   
|March
    31, 2017     |  | $80,847                                   |  | $252,875                                        |  | 4.21%                                                                               |  | 3.19%                                                                                    |  | March
    31, 2020                      
|June
    30, 2017      |  | $0                                        |  | $176,963                                        |  | 3.98%                                                                               |  | 3.18%                                                                                    |  | June
    30, 2020                       
|September
    30, 2017 |  | $0                                        |  | $119,188                                        |  | 4.19%                                                                               |  | 3.00%                                                                                    |  | September
    30, 2020                  
|December
    31, 2017  |  | $0                                        |  | $0                                              |  | N/A                                                                                 |  | N/A                                                                                      |  | N/A                                     





|(1) | “Operating
    Expense Ratio” includes all expenses borne by us, except for organizational and offering expenses, base management and
    incentive fees owed to our Adviser, financing fees and costs, interest
    expense, brokerage commissions and extraordinary expenses.The Company did not achieve its minimum offering amount
    until June 25, 2014 and as a result, did not invest the proceeds from the offering and realize any income from investments
    prior to the end of its fiscal quarter.                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | “Annualized
    Distribution Rate” equals the annualized rate of distributions paid to stockholders based on the amount of the regular
    cash distribution paid immediately prior to the date the expense support payment obligation was incurred by our Adviser. “Annualized
    Distribution Rate” does not include special cash or stock distributions paid to stockholders. The Company did not achieve
    its minimum offering amount until June 25, 2014 and as a result, did not have an opportunity to invest the proceeds from the
    offering and realize any income from investments or pay any distributions to stockholders prior to the end of its fiscal quarter.



Beginning
the year ended December 31, 2016, the Adviser began to reimburse less than 100% of operating expenses, and for the year ended
December 31, 2017, the Adviser did not reimburse any operating expenses after the first quarter. Additionally, the Adviser did
not reimburse any offering expenses for the fourth quarter of 2017. Of these offering and operating expenses, $1,701,035 has exceeded
the three-year period for repayment and will not be repayable by the Company.





59





The
chart below, on a cumulative basis, discloses the components of the Reimbursement due from Sponsor reflected on the chart above:





|                                     |  | December 31, |            | December 31, |  | December 31,
|------------------------------------ |  | ------------ | ---------- | ------------ |  | ------------
|                                     |  | 2017         |            | 2016         |  | 2015        
|Operating Expenses                   |  | $            | 1,977,504  |              |  | $           
|Offering Costs                       |  |              | 3,314,687  |              |  |             
|Due to related party offset          |  |              | (4,707,407 | )            |  |             
|Reimbursements received from Adviser |  |              | (342,715   | )            |  |             
|Other amounts due to affiliates      |  |              | 15,559     |              |  |             
|Total Reimbursement due from Adviser |  | $            | 257,628    |              |  | $           



Operating
Expensesare the amounts reimbursed by the Adviser for our operating costs and Offering Costs are the cumulative amount
of organizational and offering expenses reimbursed to us by the Adviser and subject to future reimbursement per the terms of our
expense reimbursement agreement.



Due
to related party offsetrepresents the cash the Adviser paid directly for our operating and offering expenses and Reimbursements
received from sponsorare the amounts the Adviser paid in cash to us for reimbursement of our operating and offering costs.



Either
we or our Adviser may terminate the Expense Support Agreement at any time, except that if our Adviser terminates the agreement,
it may not terminate its obligations to provide expense support payments after the commencement of any monthly period. If we terminate
the Investment Advisory Agreement, we will be required to repay our Adviser all expense support payments made by our Adviser within
three years of the date of termination.



Critical
Accounting Policies



This
discussion of our expected operating plans is based upon our expected financial statements, which will be prepared in accordance
with accounting principles generally accepted in the United States, or GAAP. The preparation of these financial statements will
require our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and
expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could
cause actual results to differ. In addition to the discussion below, we will describe our critical accounting policies in the
notes to our future financial statements.



Valuation
of Investments



Our
board of directors has established procedures for the valuation of our investment portfolio. These procedures are detailed below.



Investments
for which market quotations are readily available will be valued at such market quotations. For most of our investments, market
quotations will not be available. With respect to investments for which market quotations are not readily available or when such
market quotations are deemed not to represent fair value, our board of directors has approved a multi-step valuation process each
quarter, as described below:



| | 1. | Each
                                         portfolio company or investment will be valued by our Adviser, potentially with assistance
                                         from one or more independent valuation firms engaged by our board of directors;
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | The
                                         independent valuation firm, if involved, will conduct independent appraisals and make
                                         an independent assessment of the value of each investment;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. | The
                                         audit committee of our board of directors will review and discuss the preliminary valuation
                                         prepared by our Adviser and that of the independent valuation firm, if any; and
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4. | The
                                         board of directors will discuss the valuations and determine the fair value of each investment
                                         in our portfolio in good faith based on the input of our Adviser, the independent valuation
                                         firm, if any, and the audit committee.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Investments
will be valued utilizing a cost approach, a market approach, an income approach, or a combination of approaches, as appropriate.
The cost approach is most likely only to be used early in the life of an



60







investment
or if we determine that there has been no material change in the investment since purchase. The market approach uses prices and
other relevant information generated by market transactions involving identical or comparable assets or liabilities (including
a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to
a single present value amount, calculated using an appropriate discount rate. The measurement is based on the net present value
indicated by current market expectations about those future amounts. In following these approaches, the types of factors that
we may take into account in fair value pricing our investments include, as relevant: available current market data, including
relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants,
call protection provisions, information rights, the nature and realizable value of any collateral, the Company’s ability
to make payments, its earnings and discounted cash flows, the markets in which the Company does business, comparisons of financial
ratios of peer companies that are public, M&A comparables, the principal market and enterprise values, among other factors.



We
have adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic
820, Fair Value Measurement, which defines fair value, establishes a framework for measuring fair value in accordance
with generally accepted accounting principles and expands disclosures about fair value measurements.



ASC
Topic 820 provides a consistent definition of fair value which focuses on exit price and prioritizes, within a measurement of
fair value, the use of market-based inputs over entity-specific inputs. It defines fair value as the price an entity would receive
when an asset is sold or when a liability is transferred in an orderly transaction between market participants at the measurement
date. In addition, ASC Topic 820 provides a framework for measuring fair value and establishes a three-level hierarchy for fair
value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.
The three levels of valuation hierarchy established by ASC Topic 820 are defined as follows:



Level
1: Quoted prices in active markets for identical assets or liabilities, accessible by the company at the measurement date.



Level
2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities
in markets that are not active, or other observable inputs other than quoted prices.



Level
3: Unobservable inputs for the asset or liability.



In
all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined
based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a
particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment.



In
accordance with ASC Topic 820, the fair value of our investments is defined as the price that we would receive upon selling an
investment in an orderly transaction to an independent buyer in the principal or most advantageous market in which that investment
is transacted.



Revenue
Recognition



We
record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt securities
with contractual PIK interest, which represents contractual interest accrued and added to the principal balance, we generally
will not accrue PIK interest for accounting purposes if the portfolio company valuation indicates that such PIK interest is not
collectible. We do not accrue as a receivable interest on loans and debt securities for accounting purposes if we have reason
to doubt our ability to collect such interest. Original issue discounts, market discounts or premiums are accreted or amortized
using the effective interest method as interest income. We record prepayment premiums on loans and debt securities as interest
income. Dividend income, if any, is recognized on an accrual basis to the extent that we expect to collect such amount.





61







Net
Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation



We
will measure net realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized
cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering
unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation will reflect the change
in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation
or depreciation, when gains or losses are realized.



Payment-in-Kind
Interest



We
may have investments in our portfolio that contain a PIK interest provision. Any PIK interest will be added to the principal balance
of such investments and is recorded as income, if the portfolio company valuation indicates that such PIK interest is collectible.
In order to maintain our status as a RIC, substantially all of this income must be paid out to stockholders in the form of distributions,
even if we have not collected any cash.



Organization
and Offering Expenses



The
Company has incurred certain expenses in connection with the registration of shares of its common stock for sale as discussed
in Note 1 – Description of Business and Summary of Significant Accounting Policies. These costs principally relate to professional
fees, fees paid to the SEC and fees paid to the Financial Industry Regulatory Authority. These costs were included in deferred
offering costs in the accompanying balance sheets. Simultaneous with the sale of common shares, the deferred offering costs will
be reclassified to stockholders’ equity upon the issuance of shares.



Federal
Income Taxes



We
elected to be treated, beginning with our fiscal year ending December 31, 2012, and intend to qualify annually thereafter, as
a RIC under Subchapter M of the Code. As a RIC, we generally will not have to pay corporate-level federal income taxes on any
ordinary income or capital gains that we distribute to our stockholders from our tax earnings and profits. To maintain our RIC
tax treatment, we must, among other things, meet specified source-of-income and asset diversification requirements and distribute
annually at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital
losses, if any.



|Item
    7A. | Quantitative
    and Qualitative Disclosures About Market Risk
|------------ | --------------------------------------------------------------



We
are subject to financial market risks, including changes in interest rates. As of December 31, 2017, 100% of our debt
investments paid variable interest rates. A rise in the general level of interest rates can be expected to lead to higher
interest rates applicable to certain variable rate investments we hold and to declines in the value of any fixed rate
investments we may hold in the future.



The
following table shows the effect over a twelve-month period of changes in interest rates on our interest income, interest expense
and net interest income, assuming no changes in our investment portfolio and borrowing arrangements in effect as of December 31,
2017:





|LIBOR
    Basis Point Change |  | Percentage
    
    Change in  Net Interest Income |      
|---------------------------- |  | -------------------------------------------------- | -----
|Down
    25 basis points     |  |                                                    | 0.00 
|Current
    LIBOR            |  |                                                    | 0.00 
|Up
    100 basis points      |  |                                                    | 20.91
|Up
    200 basis points      |  |                                                    | 33.25
|Up
    300 basis points      |  |                                                    | 45.58





62







Because
we may borrow money to make investments, our net investment income may be dependent on the difference between the rate at which
we borrow funds and the rate at which we invest these funds. In periods of increasing interest rates, our cost of funds would
increase, which may reduce our net investment income. As a result, there can be no assurance that a significant change in market
interest rates will not have a material adverse effect on our net investment income.



We
may also face risk due to the lack of liquidity in the marketplace which could prevent us from raising sufficient funds to adequately
invest in a broad pool of assets. We are subject to other financial market risks, including changes in interest rates. However,
at this time, with no portfolio investments, this risk is immaterial.



In
addition, we may have risk regarding portfolio valuation. See “Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations—Critical Accounting Policies—Valuation of Portfolio Investments.”



|Item
    8. | Financial Statements
    and Supplementary Data.
|----------- | ------------------------------------------------



Index
to Financial Statements



|                                                                                                          |  | Page
|--------------------------------------------------------------------------------------------------------- |  | ----
|Report of Independent Registered
    Public Accounting Firm                                               |  | 64  
|Consolidated Statement of
    Financial Position as of December 31, 2017 and 2016                         |  | 65  
|Consolidated Statements of
    Operations for the years ended December 31, 2017, 2016 and 2015            |  | 66  
|Consolidated Statements of
    Changes in Net Assets for the years ended December 31, 2017, 2016 and 2015 |  | 67  
|Consolidated Statements of
    Cash Flows for the years ended December 31, 2017, 2016 and 2015            |  | 68  
|Consolidated Schedule of
    Investments for the years ended December 31, 2017, and 2016                  |  | 69  
|Notes to Consolidated Financial
    Statements                                                            |  | 72  



63







REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM







|To the Board of Directors and                              
|-----------------------------------------------------------
|Stockholders of Triton Pacific Investment Corporation, Inc.



Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position, including the consolidated schedule of investments
of Triton Pacific Investment Corporation, Inc.(a Maryland corporation) (the “Company”) as of December 31, 2017 and
2016, and the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years
in the period ended December 31, 2017 (collectively referred to as the “financial statements”) and the consolidated
financial highlights for each of the three years in the period ended December 31, 2017. In our opinion, the financial statements
present fairly, in all material respects, the financial position of Triton Pacific Investment Corporation as of December 31, 2017
and 2016, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017
in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial
statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s
financial statements and consolidated financial highlights based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect
to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and consolidated
financial highlights are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor
were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required
to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits
included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
Our procedures included confirmation of securities owned as of December 31, 2017 and 2016 by correspondence with the custodian
or by other auditing procedures where a reply from the custodian was not received. We believe that our audits provide a reasonable
basis for our opinion.

/s/FGMK, LLC

Chicago, Illinois

April 2, 2018

We have served as the Company’s auditor since 2012.





64







TRITON
PACIFIC INVESTMENT CORPORATION, INC.

CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION

DECEMBER
31, 2017 AND 2016



|                                                                                                                                                  |  | December
    31, |            |   | December
    31, |  
|------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------- | ---------- | - | ---------------- | -
|                                                                                                                                                  |  | 2017             |            |   | 2016             |  
|ASSETS                                                                                                                                            | 
|Affiliate
    investments, at fair value (amortized cost - $1,916,389 and $1,896,901 respectively)                                                |  | $                | 537,903    |   |                  | $
|Non-affiliate
    investments, at fair value (amortized cost - $11,633,659 and $8,705,606, respectively)                                          |  |                  | 11,497,635 |   |                  |  
|Cash                                                                                                                                              |  |                  | 5,648,505  |   |                  |  
|Principal
    and interest receivable                                                                                                             |  |                  | 41,027     |   |                  |  
|Prepaid
    expenses                                                                                                                              |  |                  | 48,091     |   |                  |  
|Reimbursement
    due from adviser (see Note 4)                                                                                                   |  |                  | 257,628    |   |                  |  
|Deferred
    offering costs                                                                                                                       |  |                  | 84,070     |   |                  |  
|TOTAL
    ASSETS                                                                                                                                  |  | $                | 18,114,859 |   |                  | $
|                                                                                                                                                  |  |                  |            |   |                  |  
|LIABILITIES AND NET ASSETS                                                                                                                       
|                                                                                                                                                  |  |                  |            |   |                  |  
|LIABILITIES                                                                                                                                       |  |                  |            |   |                  |  
|Payable
    for investments purchased                                                                                                             |  | $                | 990,000    |   |                  | $
|Accounts
    payable and accrued liabilities                                                                                                      |  |                  | 249,910    |   |                  |  
|Stockholder
    distributions payable                                                                                                             |  |                  | -          |   |                  |  
|Due
    to related parties (see Note 4)                                                                                                           |  |                  | 25,712     |   |                  |  
|TOTAL
    LIABILITIES                                                                                                                             |  |                  | 1,265,622  |   |                  |  
|                                                                                                                                                  |  |                  |            |   |                  |  
|COMMITMENTS
    AND CONTINGENCIES (see Note 9)                                                                                                    |  |                  |            |   |                  |  
|                                                                                                                                                  |  |                  |            |   |                  |  
|NET
    ASSETS                                                                                                                                    |  |                  |            |   |                  |  
|Common stock, $0.001
    par value, 75,000,000 shares
    authorized, 1,417,233.32
    and 976,409.17 shares issued and outstanding, respectively |  |                  | 1,417      |   |                  |  
|Capital in excess
    of par value                                                                                                                |  |                  | 19,033,890 |   |                  |  
|Accumulated
    undistributed net realized gains                                                                                                  |  |                  | 65,363     |   |                  |  
|Accumulated
    distributions in excess of net investment income                                                                                  |  |                  | (736,923   | ) |                  |  
|Accumulated
    unrealized appreciation (depreciation) on investments                                                                             |  |                  | (1,514,510 | ) |                  |  
|TOTAL
    NET ASSETS                                                                                                                              |  |                  | 16,849,237 |   |                  |  
|                                                                                                                                                  |  |                  |            |   |                  |  
|TOTAL
    LIABILITIES AND NET ASSETS                                                                                                              |  | $                | 18,114,859 |   |                  | $
|                                                                                                                                                  |  |                  |            |   |                  |  
|Net
    asset value per share of common stock at year end                                                                                         |  | $                | 11.89      |   |                  | $





The
accompanying notes are an integral part of these statements.





65









TRITON
PACIFIC INVESTMENT CORPORATION, INC.

CONSOLIDATED
STATEMENTS OF OPERATIONS

YEARS
ENDED DECEMBER 31, 2017, 2016 AND 2015





|                                                                               |  | Year Ended   |            | Year Ended   |  | Year Ended  
|------------------------------------------------------------------------------ |  | ------------ | ---------- | ------------ |  | ------------
|                                                                               |  | December 31, |            | December 31, |  | December 31,
|                                                                               |  | 2017         |            | 2016         |  | 2015        
|                                                                               |  |              |            |              |  |             
|INVESTMENT INCOME                                                              |  |              |            |              |  |             
|Interest from affiliate investments                                            |  | $            | 19,488     |              |  | $           
|Interest from non-control/ non-affiliate investments                           |  |              | 752,578    |              |  |             
|Fee income from non-control/ non-affiliate investments                         |  |              | 45,382     |              |  |             
|                                                                               |  |              |            |              |  |             
|Total investment income                                                        |  |              | 817,448    |              |  |             
|                                                                               |  |              |            |              |  |             
|OPERATING EXPENSES                                                             |  |              |            |              |  |             
|Management fees                                                                |  |              | 334,224    |              |  |             
|Capital gains incentive fees (see Notes 2 and 4)                               |  |              | (334       | )            |  |             
|Administrator expense                                                          |  |              | 301,986    |              |  |             
|Professional fees                                                              |  |              | 338,552    |              |  |             
|Insurance expense                                                              |  |              | 77,015     |              |  |             
|Offering expense                                                               |  |              | 11,622     |              |  |             
|Other operating expenses                                                       |  |              | 27,459     |              |  |             
|                                                                               |  |              |            |              |  |             
|Total operating expenses                                                       |  |              | 1,090,524  |              |  |             
|                                                                               |  |              |            |              |  |             
|Expense reimbursement from sponsor                                             |  |              | (80,847    | )            |  |             
|                                                                               |  |              |            |              |  |             
|Net operating expenses                                                         |  |              | 1,009,677  |              |  |             
|                                                                               |  |              |            |              |  |             
|Net investment income (loss)                                                   |  |              | (192,229   | )            |  |             
|                                                                               |  |              |            |              |  |             
|REALIZED AND UNREALIZED GAIN/(LOSS)                                            |  |              |            |              |  |             
|Net realized gain on unaffiliated investments                                  |  |              | 91,436     |              |  |             
|Net increase (decrease) in unrealized appreciation on unaffiliated investments |  |              | (159,389   | )            |  |             
|Net increase (decrease) in unrealized appreciation on affiliated investments   |  |              | (1,356,787 | )            |  |             
|                                                                               |  |              |            |              |  |             
|Total net realized and unrealized gain (loss) on investments                   |  |              | (1,424,740 | )            |  |             
|                                                                               |  |              |            |              |  |             
|NET INCREASE (DECREASE) IN NET ASSETS  FROM OPERATIONS                         |  | $            | (1,616,969 | )            |  | $           
|                                                                               |  |              |            |              |  |             
|PER SHARE INFORMATION - Basic and Diluted                                      |  |              |            |              |  |             
|Net increase (decrease) in net assets resulting from operations per share      |  | $            | (1.34      | )            |  | $           
|                                                                               |  |              |            |              |  |             
|Weighted average common shares outstanding - basic and diluted                 |  |              | 1,203,418  |              |  |             



The
accompanying notes are an integral part of these statements.



66







TRITON
PACIFIC INVESTMENT CORPORATION, INC.

CONSOLIDATED
STATEMENTS OF CHANGES IN NET ASSETS

YEARS
ENDED DECEMBER 31, 2017, 2016 AND 2015





|                                                                     |  | For the Year Ended
December 31, |            | For the Year Ended
December 31, |  | For the Year Ended
December 31,
|-------------------------------------------------------------------- |  | ------------------------------- | ---------- | ------------------------------- |  | -------------------------------
|                                                                     |  | 2017                            |            | 2016                            |  | 2015                           
|Operations                                                           |  |                                 |            |                                 |  |                                
|Net investment income (loss)                                         |  | $                               | (192,229   | )                               |  | $                              
|Net realized gain on investments                                     |  |                                 | 91,436     |                                 |  |                                
|Net increase (decrease) in unrealized appreciation on investments    |  |                                 | (1,516,176 | )                               |  |                                
|Net increase (decrease) in net assets resulting from operations      |  |                                 | (1,616,969 | )                               |  |                                
|Stockholder distributions (see Note 5)                               |  |                                 |            |                                 |  |                                
|Distributions from net investment income                             |  |                                 | (493,061   | )                               |  |                                
|Distributions from net realized gain on investments                  |  |                                 | (47,998    | )                               |  |                                
|Net decrease in net assets resulting from stockholder distributions  |  |                                 | (541,059   | )                               |  |                                
|Capital share transactions                                           |  |                                 |            |                                 |  |                                
|Issuance of common stock (see Note 3)                                |  |                                 | 5,779,405  |                                 |  |                                
|Reinvestment of stockholder distributions (see Note 3)               |  |                                 | 291,697    |                                 |  |                                
|Repurchase of shares of common stock                                 |  |                                 | (292,539   | )                               |  |                                
|Offering costs                                                       |  |                                 | -          |                                 |  |                                
|Net increase in net assets resulting from capital share transactions |  |                                 | 5,778,563  |                                 |  |                                
|                                                                     |  |                                 |            |                                 |  |                                
|Total increase in net assets                                         |  |                                 | 3,620,535  |                                 |  |                                
|Net assets at beginning of year                                      |  |                                 | 13,228,702 |                                 |  |                                
|Temporary equity reclassified as permanent equity                    |  |                                 | -          |                                 |  |                                
|Net assets at end of year                                            |  | $                               | 16,849,237 |                                 |  | $                              
|Accumulated distributions in excess of net investment income         |  | $                               | (736,923   | )                               |  | $                              
|Accumulated undistributed net realized gains                         |  | $                               | 65,363     |                                 |  | $                              





The
accompanying notes are an integral part of these statements.



67







TRITON
PACIFIC INVESTMENT CORPORATION, INC.

CONSOLIDATED
STATEMENTS OF CASH FLOWS

YEARS
ENDED DECEMBER 31, 2017, 2016 AND 2015





|                                                                                                                                                |  |              |            |              |  |             
|----------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ---------- | ------------ |  | ------------
|                                                                                                                                                |  | Year Ended   |            | Year Ended   |  | Year Ended  
|                                                                                                                                                |  | December 31, |            | December 31, |  | December 31,
|                                                                                                                                                |  | 2017         |            | 2016         |  | 2015        
|CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                            |  |              |            |              |  |             
|Net increase (decrease) in net assets resulting from operations                                                                                 |  | $            | (1,616,969 | )            |  | $           
|Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities |  |              |            |              |  |             
|Purchases of investments                                                                                                                        |  |              | (7,112,875 | )            |  |             
|Proceeds from sales and repayments of investments                                                                                               |  |              | 4,308,024  |              |  |             
|Net realized gain from investments                                                                                                              |  |              | (91,436    | )            |  |             
|Net change in unrealized appreciation (depreciation) on investments                                                                             |  |              | 1,516,176  |              |  |             
|Accretion of discount                                                                                                                           |  |              | (31,766    | )            |  |             
|Net increase in paid-in-kind interest                                                                                                           |  |              | (19,488    | )            |  |             
|Amortization of deferred offering costs                                                                                                         |  |              | 11,622     |              |  |             
|Change in assets and liabilities                                                                                                                |  |              |            |              |  |             
|Principal and interest receivable                                                                                                               |  |              | (21,722    | )            |  |             
|Receivable for investments sold and repaid                                                                                                      |  |              | -          |              |  |             
|Prepaid expenses                                                                                                                                |  |              | (2,039     | )            |  |             
|Reimbursement due from Adviser                                                                                                                  |  |              | (151,045   | )            |  |             
|Payable for investments purchased                                                                                                               |  |              | (71,625    | )            |  |             
|Accounts payable and accrued liabilities                                                                                                        |  |              | 24,910     |              |  |             
|Due to related parties                                                                                                                          |  |              | (7,401     | )            |  |             
|NET CASH USED BY OPERATING ACTIVITIES                                                                                                           |  |              | (3,265,634 | )            |  |             
|                                                                                                                                                |  |              |            |              |  |             
|CASH FLOWS FROM FINANCING ACTIVITIES                                                                                                            |  |              |            |              |  |             
|Issuance of common stock                                                                                                                        |  |              | 5,779,405  |              |  |             
|Payments on repurchases of shares of common stock                                                                                               |  |              | (292,539   | )            |  |             
|Stockholder distributions                                                                                                                       |  |              | (249,362   | )            |  |             
|Increases in distributions payable                                                                                                              |  |              | (16,574    | )            |  |             
|Offering costs                                                                                                                                  |  |              | (95,692    | )            |  |             
|NET CASH PROVIDED BY FINANCING ACTIVITIES                                                                                                       |  |              | 5,125,238  |              |  |             
|                                                                                                                                                |  |              |            |              |  |             
|NET INCREASE IN CASH                                                                                                                            |  |              | 1,859,604  |              |  |             
|                                                                                                                                                |  |              |            |              |  |             
|CASH - BEGINNING OF YEAR                                                                                                                        |  | $            | 3,788,901  |              |  | $           
|                                                                                                                                                |  |              |            |              |  |             
|CASH  - END OF YEAR                                                                                                                             |  | $            | 5,648,505  |              |  | $           



The
accompanying notes are an integral part of these statements.



68







TRITON
PACIFIC INVESTMENT CORPORATION, INC.

CONSOLIDATED
SCHEDULE OF INVESTMENTS

DECEMBER
31, 2017





|Portfolio
    Company                         |  | Footnotes |  |  | Industry                              |  | Rate(b)               |  |  | Base
    Rate Floor |  |  | Maturity   |  |  | Principal
    Amount/ Number of Shares |           |  | Amortized
    Cost(f) |   |           | Fair
    Value(c) | 
|--------------------------------------------- |  | --------- |  |  | ------------------------------------- |  | --------------------- |  |  | ------------------- |  |  | ---------- |  |  | -------------------------------------- | --------- |  | --------------------- | - | --------- | ----------------- | 
|Senior
    Secured Loans—First Lien—45.65%    |  |           |  |  |                                       |  |                       |  |  |                     |  |  |            |  |  |                                        |           |  |                       |   |           |                   | 
|LSF9
    Atlantis Holdings, LLC               |  |           |  |  | Telecommunications                    |  | L+6.00%
    (7.36%)   |  |  | 1.4%                |  |  | 5/1/2023   |  |  | $                                      | 493,750   |  |                       | $ | 489,235   |                   | 
|California
    Pizza Kitchen, Inc.            |  |           |  |  | Beverage,
    Food & Tobacco          |  | L+6.00%
    (7.57%)   |  |  | 1.6%                |  |  | 8/19/2022  |  |  |                                        | 345,625   |  |                       |   | 342,933   |                   | 
|CareCentrix,
    Inc.                         |  |           |  |  | Healthcare
    & Pharmaceuticals      |  | L+5.00%
    (6.69%)   |  |  | 1.7%                |  |  | 7/8/2021   |  |  |                                        | 195,500   |  |                       |   | 192,300   |                   | 
|CareerBuilder                                 |  |           |  |  | Business
    Services                 |  | L+6.75%
    (8.44%)   |  |  | 1.7%                |  |  | 7/27/2023  |  |  |                                        | 493,750   |  |                       |   | 479,771   |                   | 
|Coronado
    Group LLC                        |  |           |  |  | Metals
    & Mining                   |  | L+7.00%
    (8.33%)   |  |  | 1.3%                |  |  | 6/6/2023   |  |  |                                        | 386,565   |  |                       |   | 372,948   |                   | 
|CRCI
    Holdings, Inc.                       |  |           |  |  | Business
    Services                 |  | L+5.50%
    (7.19%)   |  |  | 1.7%                |  |  | 8/31/2023  |  |  |                                        | 324,563   |  |                       |   | 321,740   |                   | 
|Deluxe
    Entertainment Services Group, Inc. |  |           |  |  | Media:
    Diversified and Production |  | L+5.50%
    (6.88%)   |  |  | 1.4%                |  |  | 2/28/2020  |  |  |                                        | 340,762   |  |                       |   | 333,958   |                   | 
|Flavors
    Holdings, Inc. Tranche B          |  |           |  |  | Beverage,
    Food & Tobacco          |  | L+5.75%
    (7.44%)   |  |  | 1.7%                |  |  | 4/3/2020   |  |  |                                        | 104,687   |  |                       |   | 102,670   |                   | 
|GK
    Holdings, Inc.                         |  |           |  |  | Business
    Services                 |  | L+6.00%
    (7.69%)   |  |  | 1.7%                |  |  | 1/20/2021  |  |  |                                        | 121,250   |  |                       |   | 120,778   |                   | 
|GoWireless
    Holdings, Inc.                 |  |           |  |  | Consumer
    Services                 |  | L+6.50%
    (8.16%)   |  |  | 1.7%                |  |  | 12/20/2024 |  |  |                                        | 500,000   |  |                       |   | 495,000   |                   | 
|IG
    Investments Holdings, LLC              |  |           |  |  | Business
    Services                 |  | L+3.50%
    (5.19%)   |  |  | 1.7%                |  |  | 10/29/2021 |  |  |                                        | 345,543   |  |                       |   | 344,239   |                   | 
|InfoGroup
    Inc.                            |  |           |  |  | Business
    Services                 |  | L+5.00%
    (6.69%)   |  |  | 1.7%                |  |  | 3/28/2023  |  |  |                                        | 496,250   |  |                       |   | 491,871   |                   | 
|Jackson
    Hewitt, Inc.                      |  |           |  |  | Business
    Services                 |  | L+7.00%
    (8.38%)   |  |  | 1.4%                |  |  | 7/30/2020  |  |  |                                        | 186,139   |  |                       |   | 183,882   |                   | 
|McAfee
    LLC                                |  |           |  |  | Business
    Services                 |  | L+4.50%
    (6.07%)   |  |  | 1.6%                |  |  | 9/27/2024  |  |  |                                        | 249,375   |  |                       |   | 246,960   |                   | 
|Moran
    Foods, LLC                          |  |           |  |  | Beverage,
    Food & Tobacco          |  | L+6.00%
    (7.57%)   |  |  | 1.6%                |  |  | 12/5/2023  |  |  |                                        | 346,500   |  |                       |   | 337,622   |                   | 
|Pre-Paid
    Legal Services, Inc              |  |           |  |  | Consumer
    Services                 |  | L+5.25%
    (6.82%)   |  |  | 1.6%                |  |  | 7/1/2019   |  |  |                                        | 317,021   |  |                       |   | 316,483   |                   | 
|Raley’s                                       |  |           |  |  | Beverage,
    Food & Tobacco          |  | L+5.25%
    (6.82%)   |  |  | 1.6%                |  |  | 5/18/2022  |  |  |                                        | 285,967   |  |                       |   | 285,967   |                   | 
|Sahara
    Parent Inc                         |  |           |  |  | Business
    Services                 |  | L+5.00%
    (6.69%)   |  |  | 1.7%                |  |  | 8/16/2024  |  |  |                                        | 349,125   |  |                       |   | 345,783   |                   | 
|SITEL
    Worldwide Corporation               |  |           |  |  | Business
    Services                 |  | L+5.50%
    (6.88%)   |  |  | 1.4%                |  |  | 9/20/2021  |  |  |                                        | 195,500   |  |                       |   | 195,212   |                   | 
|Strike,
    LLC                               |  |           |  |  | Energy:
    Oil & Gas                 |  | L+8.00%
    (9.50%)   |  |  | 1.5%                |  |  | 11/30/2022 |  |  |                                        | 332,500   |  |                       |   | 323,942   |                   | 
|Travel
    Leaders Group, LLC                 |  |           |  |  | Hotel,
    Gaming & Leisure           |  | L+4.50%
    (5.92%)   |  |  | 1.4%                |  |  | 1/25/2024  |  |  |                                        | 347,379   |  |                       |   | 345,866   |                   | 
|TruGreen
    Limited Partnership              |  |           |  |  | Consumer
    Services                 |  | L+4.00%
    (5.54%)   |  |  | 1.5%                |  |  | 4/13/2023  |  |  |                                        | 345,634   |  |                       |   | 341,640   |                   | 
|Verdesian
    Life Sciences LLC               |  |           |  |  | Wholesale
    Trade-Nondurable Goods  |  | L+5.00%
    (6.38%)   |  |  | 1.4%                |  |  | 7/1/2020   |  |  |                                        | 208,335   |  |                       |   | 207,283   |                   | 
|Wirepath
    LLC                              |  |           |  |  | Consumer
    Services                 |  | L+5.25%
    (6.87%)   |  |  | 1.6%                |  |  | 8/5/2024   |  |  |                                        | 498,750   |  |                       |   | 496,340   |                   | 
|Total
    Senior Secured Loans—First Lien     |  |           |  |  |                                       |  |                       |  |  |                     |  |  |            |  |  | $                                      | 7,810,470 |  |                       | $ | 7,714,423 |                   | 
|                                              |  |           |  |  |                                       |  |                       |  |  |                     |  |  |            |  |  |                                        |           |  |                       |   |           |                   | 
|Senior
    Secured Loans—Second Lien—22.59%   |  |           |  |  |                                       |  |                       |  |  |                     |  |  |            |  |  |                                        |           |  |                       |   |           |                   | 
|Flavors
    Holdings, Inc.                    |  |           |  |  | Beverage,
    Food & Tobacco          |  | L+10.00%
    (11.69%) |  |  | 1.7%                |  |  | 10/7/2021  |  |  |                                        | 125,000   |  |                       |   | 122,343   |                   | 
|FullBeauty
    Brands Holding                 |  |           |  |  | High
    Tech Industries              |  | L+9.00%
    (10.57%)  |  |  | 1.6%                |  |  | 10/13/2023 |  |  |                                        | 250,000   |  |                       |   | 218,903   |                   | 
|GK
    Holdings, Inc.                         |  |           |  |  | Business
    Services                 |  | L+10.25%
    (11.94%) |  |  | 1.7%                |  |  | 1/21/2022  |  |  |                                        | 125,000   |  |                       |   | 123,559   |                   | 
|Inmar                                         |  |           |  |  | Business
    Services                 |  | L+8.00%
    (9.42%)   |  |  | 1.4%                |  |  | 5/1/2025   |  |  |                                        | 500,000   |  |                       |   | 493,103   |                   | 
|McAfee
    LLC                                |  |           |  |  | Business
    Services                 |  | L+8.50%
    (10.07%)  |  |  | 1.6%                |  |  | 9/26/2025  |  |  |                                        | 500,000   |  |                       |   | 496,986   |                   | 
|Neustar,
    Inc.                             |  |           |  |  | High
    Tech Industries              |  | L+8.00%
    (9.40%)   |  |  | 1.4%                |  |  | 2/28/2025  |  |  |                                        | 750,000   |  |                       |   | 739,275   |                   | 
|NPC
    International, Inc.                   |  |           |  |  | Beverage,
    Food & Tobacco          |  | L+7.50
    (9.05%)    |  |  | 1.6%                |  |  | 3/28/2025  |  |  |                                        | 500,000   |  |                       |   | 498,135   |                   | 
|Oxbow
    Carbon LLC                          |  |           |  |  | Metals
    & Mining                   |  | L+7.00
    (8.24%)    |  |  | 1.2%                |  |  | 1/19/2020  |  |  |                                        | 250,000   |  |                       |   | 240,350   |                   | 
|Oxbow
    Carbon LLC                          |  |           |  |  | Metals
    & Mining                   |  | L+6.00
    (10.50%)   |  |  | 4.5%                |  |  | 1/4/2024   |  |  |                                        | 500,000   |  |                       |   | 495,034   |                   | 
|Rocket
    Software, Inc.                     |  |           |  |  | Business
    Services                 |  | L+9.50%
    (11.19%)  |  |  | 1.7%                |  |  | 10/14/2024 |  |  |                                        | 500,000   |  |                       |   | 491,548   |                   | 
|Total
    Senior Secured Loans—Second Lien    |  |           |  |  |                                       |  |                       |  |  |                     |  |  |            |  |  | $                                      | 4,000,000 |  |                       | $ | 3,919,236 |                   | 



The
accompanying notes are an integral part of these statements.





69







TRITON
PACIFIC INVESTMENT CORPORATION, INC.

CONSOLIDATED
SCHEDULE OF INVESTMENTS

DECEMBER
31, 2017 (CONTINUED)





|Portfolio
    Company                                |  | Footnotes       |  | Industry                         | Rate(b) |       |  | Base
    Rate Floor |  | Maturity |  |           | Principal
    Amount/ Number of Shares |  |   | Amortized
    Cost(f) |  |  | Fair
    Value(c) |           
|---------------------------------------------------- |  | --------------- |  | -------------------------------- | ------- | ----- |  | ------------------- |  | -------- |  | --------- | -------------------------------------- |  | - | --------------------- |  |  | ----------------- | ----------
|Subordinated
    Convertible Debt—0.00%              |  |                 |  |                                  |         |       |  |                     |  |          |  |           |                                        |  |   |                       |  |  |                   |           
|Javlin
    Capital LLC Subordinated Convertible Note |  | (a)
    (e)     |  | Specialty
    Finance            |         | 6.00% |  |                     |  |          |  | 3/31/2020 |                                        |  |   | 666,389               |  |  |                   | 666,389   
|Total
    Subordinated Convertible Debt              |  |                 |  |                                  |         |       |  |                     |  |          |  |           |                                        |  | $ | 666,389               |  |  | $                 | 666,389   
|                                                     |  |                 |  |                                  |         |       |  |                     |  |          |  |           |                                        |  |   |                       |  |  |                   |           
|Equity/Other—3.19%                                   |  |                 |  |                                  |         |       |  |                     |  |          |  |           |                                        |  |   |                       |  |  |                   |           
|ACON
    IWP Investors I, L.L.C.                     |  | (a)             |  | Healthcare
    & Pharmaceuticals |         |       |  |                     |  |          |  |           |                                        |  |   | 500,000               |  |  |                   | 500,000   
|Javlin
    Capital LLC Class C-2 Preferred Units     |  | (a)
    (d) (e) |  | Specialty
    Finance            |         |       |  |                     |  |          |  |           |                                        |  |   | 214,286               |  |  |                   | 750,000   
|Total
    Equity/Other                               |  |                 |  |                                  |         |       |  |                     |  |          |  |           |                                        |  |   | 714,286               |  |  | $                 | 1,250,000 
|                                                     |  |                 |  |                                  |         |       |  |                     |  |          |  |           |                                        |  |   |                       |  |  |                   |           
|TOTAL
    INVESTMENTS—71.43%                         |  |                 |  |                                  |         |       |  |                     |  |          |  |           |                                        |  |   |                       |  |  | $                 | 13,550,048
|OTHER
    ASSETS IN EXCESS OF LIABILITIES—28.57%     |  |                 |  |                                  |         |       |  |                     |  |          |  |           |                                        |  | $ | 4,813,699             | 
|NET
    ASSETS - 100.00%                             |  |                 |  |                                  |         |       |  |                     |  |          |  |           |                                        |  |   |                       |  |  |                   |           










| | (a) | Affiliated
                                         investment as defined by the 1940 Act, whereby the Company owns between 5% and 25% of
                                         the portfolio company’s outstanding voting securities and the investments are not
                                         classified as controlled investments. Affiliated funds that are managed by an affiliate
                                         of Triton Pacific Adviser, LLC also hold investments in this security. The aggregate
                                         fair value of non-controlled, affiliated investments at December 31, 2017 represented
                                         68.24% of the Company’s net assets. Fair value as of December 31, 2017 along with
                                         transactions during the period ended December 31, 2017 in affiliated investments were
                                         as follows:
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|                                             |  |                                     |           |  | Year
    Ended December 31, 2017 |  
|-------------------------------------------- |  | ----------------------------------- | --------- |  | -------------------------------- | -
|Non-controlled,
    Affiliated Investments   |  | Fair
    Value at December 31, 2016 |           |  | Gross
    Additions (Cost)*      |  
|ACON
    IWP Investors I, L.L.C.             |  | $                                   | 691,072   |  |                                  | $
|Javlin
    Capital, LLC, Convertible Note    |  |                                     | 646,901   |  |                                  |  
|Javlin
    Capital, LLC, C-2 Preferred Units |  |                                     | 537,229   |  |                                  |  
|Total                                        |  | $                                   | 1,875,202 |  |                                  | $





*Gross
additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization
of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing
portfolio company into this category from a different category.



**Gross
reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments
or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio
company out of this category into a different category.



| | (b) | The
                                         majority of the investments bear interest at a rate that may be determined by reference
                                         to London Interbank Offered Rate (“LIBOR” or “L”) or Prime Rate
                                         (“Prime” or “P”) which reset daily, monthly, quarterly, or semiannually.
                                         For each such investment, the Company has provided the spread over LIBOR or Prime and
                                         the current contractual interest rate in effect at December 31, 2017. Certain investments
                                         are subject to a LIBOR or Prime interest rate floor. As of December 31, 2017, the three-month
                                         London Interbank Offered Rate, or LIBOR, was 1.69465%.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | Fair
                                         value and market value are determined by the Company’s board of directors (see Note 7.)
| | --- | -------------------------------------------------------------------------------------------------------------------------------------



| | (d) | Security
                                         held within TPJ Holdings, Inc., a wholly-owned subsidiary of the Company. See Note 2
                                         for a discussion on the basis of consolidation.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (e) | The
                                         investment is not a qualifying asset under the Investment Company Act of 1940, as amended.
                                         A business development company may not acquire any asset other than a qualifying asset,
                                         unless, at the time the acquisition is made, qualifying assets represent at least 70%
                                         of the business development company’s total assets. As of December 31, 2017, 100%
                                         of the Company’s total assets represented qualifying assets.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (f) | See
                                         Note 5 for a discussion of the tax cost of the portfolio.
| | --- | ------------------------------------------------------------------------------------------------------



The
accompanying notes are an integral part of these statements.





70







TRITON
                                         PACIFIC INVESTMENT CORPORATION, INC.

CONSOLIDATED
SCHEDULE OF INVESTMENTS

DECEMBER
31, 2016





|Portfolio
    Company                                |  | Footnotes |                                                                                                                                                                                                        |  | Industry |                                              | Rate(b) |  |                                                                                                                                                                                        | Floor |  |  | Maturity |   |  | Principal
    Amount/Number of Shares |                                                     |           | Amortized
    
Cost(f) |   |         | Fair
    Value(c) |          
|---------------------------------------------------- |  | --------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -------- | -------------------------------------------- | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----- |  |  | -------- | - |  | ------------------------------------- | --------------------------------------------------- | --------- | ---------------------- | - | ------- | ----------------- | ---------
|Senior
    Secured Loans—First Lien—51.11%           |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          
|California
    Pizza Kitchen, Inc.                   |  |           |                                                                                                                                                                                                        |  |          | Beverage,
    Food & Tobacco                 |         |  | L+6.00%
                                         (7.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 8/19/2022                                           |           |                        | $ | 349,125 |                   |          
|CareCentrix
    Inc.                                 |  |           |                                                                                                                                                                                                        |  |          | Healthcare
    & Pharmaceuticals             |         |  | L+5.00%
                                         (6.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 7/8/2021                                            |           |                        |   | 197,500 |                   |          
|CRCI
    Holdings, Inc.                              |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+5.50%
                                         (6.50%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 8/31/2023                                           |           |                        |   | 349,125 |                   |          
|Curo
    Health Services Holdings, Inc.              |  |           |                                                                                                                                                                                                        |  |          | Healthcare
    & Pharmaceuticals             |         |  | L+5.50%
                                         (6.50%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 2/7/2022                                            |           |                        |   | 122,813 |                   |          
|Deluxe
    Entertainment Services Group. Inc.        |  |           |                                                                                                                                                                                                        |  |          | Media:
    Diversified and Production        |         |  | L+6.00%
                                         (7.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 2/28/2020                                           |           |                        |   | 350,000 |                   |          
|FHC
    Health Systems. Inc.                         |  |           |                                                                                                                                                                                                        |  |          | Healthcare
    & Pharmaceuticals             |         |  | L+4.00%
                                         (5.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 12/23/2021                                          |           |                        |   | 122,812 |                   |          
|Flavors
    Holdings. Inc. Tranche B                 |  |           |                                                                                                                                                                                                        |  |          | Beverage,
    Food & Tobacco                 |         |  | L+5.75%
                                         (6.75%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 4/3/2020                                            |           |                        |   | 110,938 |                   |          
|GK
    Holdings, Inc.                                |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+5.50%(6.50%)                                                                                                                                                                         |       |  |  | 1.0      | % |  |                                       | 1/20/2021                                           |           |                        |   | 122,500 |                   |          
|Global
    Healthcare Exchange, LLC                  |  |           |                                                                                                                                                                                                        |  |          | Healthcare
    & Pharmaceuticals             |         |  | L+4.25%
                                         (5.25%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 8/15/2022                                           |           |                        |   | 148,132 |                   |          
|GTCR
    Valor Companies, Inc.                       |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+6.00%
                                         (7.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 6/16/2023                                           |           |                        |   | 348,250 |                   |          
|IG
    Investments Holdings, LLC                     |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+5.00%
                                         (6.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 10/29/2021                                          |           |                        |   | 348,187 |                   |          
|Imagine
    Print Solutions, LLC                     |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+6.00%
                                         (7.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 3/30/2022                                           |           |                        |   | 248,125 |                   |          
|Jackson
    Hewitt, Inc.                             |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+7.00%
                                         (8.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 7/30/2020                                           |           |                        |   | 196,000 |                   |          
|Mister
    Car Wash, Inc.                            |  |           |                                                                                                                                                                                                        |  |          | Automotive
    Repair, Services, and Parking |         |  | L+4.25%
                                         (5.25%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 8/20/2021                                           |           |                        |   | 121,875 |                   |          
|Moran
    Foods, LLC                                 |  |           |                                                                                                                                                                                                        |  |          | Beverage,
    Food & Tobacco                 |         |  | L+6.00%
                                         (7.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 12/5/2023                                           |           |                        |   | 350,000 |                   |          
|Paradigm
    Acquisition Corp.                       |  |           |                                                                                                                                                                                                        |  |          | Healthcare
    & Pharmaceuticals             |         |  | L+5.00%
                                         (6.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 6/2/2022                                            |           |                        |   | 123,125 |                   |          
|Polycom, Inc.                                        |  |           |                                                                                                                                                                                                        |  |          | High
    Tech Industries                     |         |  | L+6.50%
                                         (7.50%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 9/27/2023                                           |           |                        |   | 338,479 |                   |          
|Pre-Paid
    Legal Services, Inc                     |  |           |                                                                                                                                                                                                        |  |          | Consumer
    Services                        |         |  | L+5.25%
                                         (6.25%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 7/1/2019                                            |           |                        |   | 350,000 |                   |          
|Raley’s                                              |  |           |                                                                                                                                                                                                        |  |          | Beverage,
    Food & Tobacco                 |         |  | L+6.25%
                                         (7.25%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 5/18/2022                                           |           |                        |   | 295,823 |                   |          
|RanpakCorp.                                          |  |           |                                                                                                                                                                                                        |  |          | Paper
    and Allied Products                |         |  | L+3.25%
                                         (4.25%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 10/1/2021                                           |           |                        |   | 114,506 |                   |          
|SITEL
    Worldwide Corporation                      |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+5.50%
                                         (6.50%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 9/20/2021                                           |           |                        |   | 197,500 |                   |          
|SiteOne
    Landscape Supply LLC                     |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+4.50%
                                         (5.50%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 9/20/2021                                           |           |                        |   | 347,379 |                   |          
|Solar
    Winds, Inc.                                |  |           |                                                                                                                                                                                                        |  |          | High
    Tech Industries                     |         |  | L+4.50%
                                         (5.50%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 2/3/2023                                            |           |                        |   | 248,750 |                   |          
|Strike,
    LLC                                      |  |           |                                                                                                                                                                                                        |  |          | Energy:
    Oil & Gas                        |         |  | L+3.75% (10.75%)                                                                                                                                                                       |       |  |  | 7.0      | % |  |                                       | 11/30/2022                                          |           |                        |   | 350,000 |                   |          
|TIBCO
    Software, Inc.                             |  |           |                                                                                                                                                                                                        |  |          | High
    Tech Industries                     |         |  | L+5.50%
                                         (6.50%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 12/4/
                                         2020 |           |                        |   | 122,813 |                   |          
|TruGreen
    Limited Partnership                     |  |           |                                                                                                                                                                                                        |  |          | Consumer
    Services                        |         |  | L+5.50%
                                         (6.50%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 4/13/2023                                           |           |                        |   | 348,250 |                   |          
|Verdesian
    Life Sciences LLC                      |  |           |                                                                                                                                                                                                        |  |          | Wholesale
    Trade-Nondurable Goods         |         |  | L+5.00%
                                         (6.00%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 7/1/2020                                            |           |                        |   | 221,546 |                   |          
|Vivid
    Seats Ltd.                                 |  |           |                                                                                                                                                                                                        |  |          | Consumer
    Services                        |         |  | L+5.75%
                                         (6.75%)                                                                                                                               |       |  |  | 1.0      | % |  |                                       | 10/12/2022                                          |           |                        |   | 250,000 |                   |          
|Total
    Senior Secured Loans—First Lien            |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       | $                                                   | 6,793,553 |                        |   | $       | 6,680,615         |          
|                                                     |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          
|Senior
    Secured Loans—Second Lien—14.87%          |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          
|Cheddar’s
    Casual Cafe, Inc.                      |  |           |                                                                                                                                                                                                        |  |          | Retail                                       |         |  | L+9.75%
                                                                                                                                                                      (10.75%) |       |  |  | 1.0      | % |  |                                       | 1/4/2023                                            |           |                        |   | 750,000 |                   |          
|Flavors
    Holdings, Inc.                           |  |           |                                                                                                                                                                                                        |  |          | Beverage,
    Food & Tobacco                 |         |  | L+10.00%
                                         (11.00%)                                                                                                                             |       |  |  | 1.0      | % |  |                                       | 10/7/2021                                           |           |                        |   | 125,000 |                   |          
|FullBeauty Brands Holding                            |  |           |                                                                                                                                                                                                        |  |          | High
    Tech Industries                     |         |  | L+9.00%
                                         (10.00%)                                                                                                                              |       |  |  | 1.0      | % |  |                                       | 10/13/2023                                          |           |                        |   | 250,000 |                   |          
|GK
    Holdings, Inc.                                |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+9.50%
                                         (10.50%)                                                                                                                              |       |  |  | 1.0      | % |  |                                       | 1/21/2022                                           |           |                        |   | 125,000 |                   |          
|Oxbow
    Carbon LLC                                 |  |           |                                                                                                                                                                                                        |  |          | Metals
    & Mining                          |         |  | L+7.00
                                         (8.00%)                                                                                                                                |       |  |  | 1.0      | % |  |                                       | 1/19/2020                                           |           |                        |   | 250,000 |                   |          
|Rocket
    Software, Inc.                            |  |           |                                                                                                                                                                                                        |  |          | Business
    Services                        |         |  | L+9.50%
                                         (10.50%)                                                                                                                              |       |  |  | 1.0      | % |  |                                       | 10/14/2024                                          |           |                        |   | 500,000 |                   |          
|SCS
    Holdings I Inc.                              |  |           |                                                                                                                                                                                                        |  |          | High
    Tech Industries                     |         |  | L+9.50%
                                         (10.50%)                                                                                                                              |       |  |  | 1.0      | % |  |                                       | 10/13/2023                                          |           |                        |   | 125,000 |                   |          
|Total
    Senior Secured Loans—Second Lien           |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       | $                                                   | 2,125,000 |                        |   | $       | 2,024,991         |          
|                                                     |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          
|Subordinated
    Convertible Debt—4.89%              |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          
|Javlin
    Capital LLC Subordinated Convertible Note |  |           | (a)
                                                                                                                                                                                           (e)     |  |          | Specialty
    Finance                        |         |  | 6.00%                                                                                                                                                                                  |       |  |  |          |   |  |                                       | 3/31/2020                                           |           |                        |   | 646,901 |                   |          
|Total
    Subordinated Convertible Debt              |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        | $ | 646,901 |                   |          
|                                                     |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          
|Equity/Other—9.29%                                   |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          
|A
    CON IWP Investors I , L.L.C.                   |  |           | (a)                                                                                                                                                                                                    |  |          | Healthcare
    & Pharmaceuticals             |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   | 500,000 |                   |          
|Javlin
    Capital LLC Class C-2 Peferred Units      |  |           | (a)
                                                                                                                                                                                           (d) (e) |  |          | Specialty
    Finance                        |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   | 214,286 |                   |          
|Total
    Equity/Other                               |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   | 714,286 |                   |          
|                                                     |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          
|TOTAL
    INVESTMENTS—80.16%                         |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          
|OTHER
    ASSETS IN EXCESS OF LIABILITIES—19.84%     |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         | $                 | 2,624,529
|NET
    ASSETS -100.00%                              |  |           |                                                                                                                                                                                                        |  |          |                                              |         |  |                                                                                                                                                                                        |       |  |  |          |   |  |                                       |                                                     |           |                        |   |         |                   |          












| | (a) | Affiliated
                                         investment as defined by the 1940 Act, where by the Company owns between 5% and 25% of
                                         the portfolio company’s outstanding voting securities and the investments are not classified
                                         as controlled investments. Affiliated funds that are managed by an affiliate of Triton
                                         Pacific Adviser, LLC also hold investments in this security. The aggregate fair value
                                         of non-controlled, affiliated investments at December 31,2016 represented 14.23% of the
                                         Company’s net assets. Fair value as of December 31, 2016 along with transactions during
                                         the period ended December 31, 2015 in affiliated investments were as follows:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|                                             |  |                                    |           |  | Year
    Ended December 31, 2016 |   |        |                               | 
|-------------------------------------------- |  | ---------------------------------- | --------- |  | -------------------------------- | - | ------ | ----------------------------- | 
|Non-controlled,
    Affiliated Investments   |  | Fair
    Value atDecember 31, 2015 |           |  | Gross
    Additions (Cost)*      |   |        | Gross
    Reductions (Cost)** | 
|ACON
    IWP Investors I, L.L.C              |  | $                                  | 738,266   |  |                                  | $ | -      |                               | 
|Javlin
    Capital, LLC, Convertible Note    |  |                                    | 609,219   |  |                                  |   | 37,682 |                               | 
|Javlin
    Capital. LLC, C-2 Preferred Units |  |                                    | 750,000   |  |                                  |   | -      |                               | 
|Total                                        |  | $                                  | 2,097,485 |  |                                  | $ | 37,682 |                               | 







*Gross
additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization
of unearned income, the exchanges of one or more existing securities for one or more new securities and the movement of an existing
portfolio company into this category from a different category.



**Gross
reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments
or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio
company out of this category into a different category.



| | (b) | Certain
                                         variable rate securities in the Company’s portfolio bear interest at a rate determined
                                         by a publicly disclosed base rate spread. As of December 31,2016, the three-month London
                                         Interbank Offered Rate, or LIBOR, was 0.99789%.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | Fair
                                         value and market value are determined by the Company’s board of directors (see Note 7.)
| | --- | -------------------------------------------------------------------------------------------------------------------------------------



| | (d) | Security
                                         held within TPJ Holdings, Inc., a wholly-owned subsidiary of the Company. See Note 2 for
                                         a discussion on the basis of consolidation.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (e) | The
                                         investment is not a qualifying asset under the Investment Company Act of 1940, as amended.
                                         A business development company may not acquire any asset other than a qualifying asset,
                                         unless, at the time the acquisition is made, qualifying assets represent at least 70%
                                         of the business development company’s total assets. As of December 31, 2016, 91.87% of
                                         the Company’s total assets represented qualifying assets.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (f) | See Note 5 for a discussion of the taxcost of the portfolio.
| | --- | ------------------------------------------------------------



The
accompanying notes are an integral part of these statements.





71







TRITON
PACIFIC INVESTMENT CORPORATION, INC.

NOTES
TO THE FINANCIAL STATEMENTS



NOTE
1 – DESCRIPTION OF BUSINESS



Triton
Pacific Investment Corporation, Inc. (the “Company”), incorporated in Maryland on April 29, 2011, is publicly registered,
non-traded fund focused on private equity, structured as a business development company, that primarily makes structured equity
and debt investments in small to mid-sized private U.S. companies. Structured equity refers to derivative investment products,
including convertible notes and warrants, designed to facilitate highly customized risk-return objectives. Pursuant to the Articles
of Incorporation, the Company is authorized to issue 75,000,000 shares of common stock with a par value of $0.001 per share. Additionally,
the Company is authorized to issue 25,000,000 shares of preferred stock with a par value of $0.001 per share. The Company is currently
offering for sale a maximum of $300,000,000 of shares of common stock on a “best efforts” basis pursuant to a registration
statement on Form N-2 filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Offering”).
On June 25, 2014, the Company met its minimum offering requirement of $2,500,000 and released all shares held in escrow.



The
Company invests either alone or together with other private equity sponsors. The Company is an externally managed, non-diversified
closed-end investment company that has elected to be treated as a business development company, or BDC, under the Investment Company
Act of 1940, or the Company Act. As a BDC, the Company is required to comply with certain regulatory requirements. The Company
has elected to be treated for U.S. federal income tax purposes, and intends to annually qualify as a regulated investment company,
or RIC, under Subchapter M of the Internal Revenue code of 1986, as amended, or the Code. As of December 31, 2017, the Company
has one wholly-owned subsidiary through which it holds interest in a non-controlled, affiliated portfolio company. The consolidated
financial statements include both the Company’s accounts and the accounts of its wholly-owned subsidiary as of December
31, 2017. All significant intercompany transactions have been eliminated in consolidation. The Company’s consolidated subsidiary
is subject to U.S. federal and state income taxes. No taxes were accrued or paid by the wholly-owned subsidiary for the years
ended December 31, 2017, 2016 and 2015.



Triton
Pacific Adviser, LLC (“Adviser”) serves as the Investment Adviser and TFA Associates, LLC (“TFA”) serves
as the Administrator. Each of these entities are affiliated with Triton Pacific Group, Inc., a private equity investment management
firm, and its subsidiary Triton Pacific Capital Partners, LLC, a private equity investment fund management company, each focused
on debt and equity investments for small to mid-sized private companies.



The
Adviser was formed in Delaware as a private investment management firm and is registered as an investment adviser with the Securities
and Exchange Commission (“SEC”) under the Investment Advisers Act of 1940, or the Advisers Act. The Adviser oversees
the management of the Company’s activities and is responsible for making the investment decisions for the portfolio.



NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Basis
of Presentation.These financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (“GAAP”). The Company is considered an investment company under GAAP and follows the
accounting and reporting guidance applicable to investment companies under Accounting Standards Update Nov. 2013-08, Financial
Services – Investment Companies. The Company has evaluated the impact of subsequent events through the date the consolidated
financial statements were issued and filed with the Securities and Exchange Commission.



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





72







Cash.All cash balances are maintained with high credit quality financial institutions which are members of the Federal Deposit
Insurance Corporation. The Company maintains cash balances that may exceed federally insured limits.



Valuation
of Portfolio Investments. The Company determines the net asset value of its investment portfolio each quarter. Securities
that are publicly-traded are valued at the reported closing price on the valuation date. Securities that are not publicly-traded
are valued at fair value as determined in good faith by the Company’s board of directors. In connection with that determination,
the Adviser provides the Company’s board of directors with portfolio company valuations which are based on relevant inputs
which may include indicative dealer quotes, values of like securities, recent portfolio company financial statements and forecasts,
and valuations prepared by third-party valuation services.



Accounting
Standards Codification Topic 820, Fair Value Measurement, or ASC Topic 820, issued by the Financial Accounting
Standards Board, clarifies the definition of fair value and requires companies to expand their disclosure about the use of fair
value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. ASC Topic 820 defines
fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. ASC Topic 820 also establishes a three-tier fair value hierarchy, which prioritizes
the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active
markets; Level 2, which includes inputs such as quoted prices for similar securities in active markets and quoted prices for identical
securities where there is little or no activity in the market; and Level 3, defined as unobservable inputs for which little or
no market data exists, therefore requiring an entity to develop its own assumptions.



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



●
    the Company’s quarterly valuation process begins with the Adviser’s management team providing
a preliminary valuation of each portfolio company or investment to the Company’s board of directors, which valuation may
be obtained from an independent valuation firm or Adviser, if applicable;



●    
 preliminary valuation conclusions are then documented and discussed with the Company’s board of directors;



●   
 the Company’s board of directors reviews the preliminary valuation and the Adviser’s management team, together with
its independent valuation firm, if applicable, responds and supplements the preliminary valuation to reflect any comments provided
by the board of directors; and



●     
the Company’s board of directors discusses valuations and determines the fair value of each investment in the Company’s
portfolio in good faith based on various statistical and other factors, including the input and recommendation of the Adviser
and any third-party valuation firm, if applicable.



Determination
of fair value involves subjective judgments and estimates. Accordingly, these notes to the Company’s financial statements
refer to the uncertainty with respect to the possible effect of such valuations and any change in such valuations on the Company’s
financial statements. Below is a description of factors that the Company’s board of directors may consider when valuing
the Company’s debt and equity investments.



Valuation
of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest
rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms
of the debt. For investments without readily available market prices, the Company may incorporate these factors into discounted
cash flow models to arrive at fair value. Other factors that the Company’s board of directors may consider include the borrower’s
ability to adequately service its debt, the fair market value of the portfolio company in relation to the face amount of its outstanding
debt and the quality of collateral securing the Company’s debt investments. The determination of fair market value for the
equity positions were determined by considering, among other factors, various income scenarios and multiples of earnings before
interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues, waterfall and liquidation priority
and market comparables, book value multiples, economic profits and portfolio multiples.





73







The
fair values of the Company’s investments are determined in good faith by the Company’s board of directors. The Company’s
board of directors is solely responsible for the valuation of the Company’s portfolio investments at fair value as determined
in good faith pursuant to the Company’s valuation policy and consistently applied valuation process.



Revenue
Recognition.Security transactions are accounted for on the trade date. The Company records interest income on an accrual
basis to the extent it expects to collect such amounts. The Company records dividend income on the ex-dividend date. The Company
does not accrue as a receivable interest or dividends on loans and securities if it has reason to doubt its ability to collect
such income. Loan origination fees, original issue discount and market discount are capitalized and the Company amortizes such
amounts as interest income over the respective term of the loan or security. Upon the prepayment of a loan or security, any unamortized
loan origination fees and original issue discount are recorded as interest income. Upfront structuring fees are recorded as fee
income when earned. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts.



Paid-In-Kind
Interest.The company has certain investments in its portfolio that contain a payment-in-kind (“PIK”) interest
provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income.
For the year ended December 31, 2017, interest income included $19,488 of PIK interest. For the year ended December 31, 2016,
interest income included $37,682 of PIK interest. For the year ended December 31, 2015, interest income included $9,219 of PIK
interest. The Company stops accruing PIK interest when it is determined that PIK interest is no longer collectible. As of July
1, 2017, the Company has stopped accruing PIK interest on the subordinated convertible note made by Javlin Financial LLC (“Javlin
Financial”). To maintain RIC tax treatment, and to avoid corporate tax, substantially all of this income must be paid out
to the stockholders in the form of distributions, even though the Company has not yet collected the cash.



Net
Realized Gains or Losses, and Net Change in Unrealized Appreciation or Depreciation. Gains or losses on the sale of investments
are calculated by using the specific identification method. The Company measures realized gains or losses by the difference between
the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation
or depreciation previously recognized, but considering unamortized upfront fees. Net change in unrealized appreciation or depreciation
reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded
unrealized gains or losses when gains or losses are realized.



Capital
Gains Incentive Fees. The Company has entered into an investment advisory agreement with the Adviser dated as of July
27, 2012. Pursuant to the terms of the investment advisory agreement, the Incentive Fee shall be determined and payable in arrears
as of the end of each quarter, upon liquidation of the Company or upon termination of this Agreement, as of the termination date,
and shall equal 20.0% of the Company’s realized capital gains, if any, on a cumulative basis from inception through the
end of each quarter, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less
the aggregate amount of any previously paid Incentive Fees. The fees for the year ended December 31, 2017 were $($334), all of
which was for Incentive Fees calculated on unrealized gains. The fees for the year ended December 31, 2016 were $($35,216), all
of which was for Incentive Fees calculated on unrealized gains. The fees for the year ended December 31, 2015 were $37,014, of
which $1,464 was for Incentive Fees calculated on realized gains, and $35,550 for Incentive Fees calculated on unrealized gains.



For
purposes of calculating the foregoing: (1) the calculation of the Incentive Fee shall include any capital gains that result from
cash distributions that are treated as a return of capital; (2) any such return of capital shall be treated as a decrease in the
Company’s cost basis of an investment; and (3) all fiscal year-end valuations shall be determined by the Company in accordance
with generally accepted accounting principles, applicable provisions of the Company Act (even if such valuation is made prior
to the date on which the Company has elected to be regulated as a BDC) and the Company’s pricing procedures. In determining
the Incentive Fee payable to the Adviser, the Company will calculate the aggregate realized capital gains, aggregate realized
capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each of the investments in its portfolio.
For this purpose, aggregate realized capital gains, if any, will equal the sum of the differences between the net sales price
of each investment, when sold, and the original cost of such investment since inception. Aggregate realized capital losses will
equal the sum of the amounts by which the net sales price of each investment, when sold, is less than the cost of such investment
since inception. Aggregate unrealized capital depreciation will equal the sum of the difference, if





74







negative, between the valuation
of each investment as of the applicable date and the original cost of such investment. At the end of the applicable period, the
amount of capital gains that serves as the basis for the Company’s calculation of the Incentive Fees will equal the aggregate
realized capital gains less aggregate realized capital losses and less aggregate unrealized capital depreciation with respect
to its portfolio of investments. If this number is positive at the end of such period, then the Incentive Fees for such period
will be equal to 20% of such amount, less the aggregate amount of any Incentive Fees paid in respect of its portfolio in all prior
periods.



Offering
Costs.The Company will incur certain expenses in connection with registering to sell shares of its common stock in connection
with the Offering. These costs principally relate to professional and filing fees. Upon recognition or repayment to the Adviser
of these costs, they will be capitalized as deferred offering expenses and then subsequently expensed over a 12-month period.
The Adviser may reimburse the Company for all or part of these amounts pursuant to the Expense Support and Conditional Reimbursement
Agreement (“Expense Reimbursement Agreement”) discussed below. As of December 31, 2017 and December 31, 2016, $3,314,687
and $2,765,661, respectively, of offering costs have been reclassified and included as part of the Expense Reimbursement Agreement
and accordingly included in Reimbursement due from the Adviser. Of these Operating Expenses, $1,701,035 has exceeded the three-year
period for repayment and will not be repayable by the Company. For the year ended December 31, 2017, the Company incurred $95,692
in offering costs that were not reimbursed by the Sponsor, of which $11,622 was expensed by the Company for the year ended December
31, 2017.



Distributions.Distributions to the Company’s stockholders are recorded as of the record date. Subject to the discretion of the
Company’s board of directors and applicable legal restrictions, the Company intends to authorize and declare ordinary cash
distributions on a monthly basis and pay such distributions on a monthly basis.



Income
Taxes.The Company has elected to be treated for federal income tax purposes, and intends to annually qualify thereafter,
as a regulated investment company (“RIC”) under Subchapter M of the Code. Generally, a RIC is exempt from federal
income taxes if it distributes at least 90% of “Investment Company Taxable Income,” as defined in the Code, each year.
Dividends paid up to 8.5 months after the current tax year can be carried back to the prior tax year for determining the dividends
paid in such tax year. The Company intends to distribute sufficient dividends to maintain its RIC status each year. The Company
is also subject to nondeductible federal excise taxes if it does not distribute at least 98% of net ordinary income, 98.2% of
capital gain income, if any, and any recognized and undistributed income from prior years for which it paid no federal excise
tax. The Company will generally endeavor each year to avoid any federal excise taxes.



GAAP
requires management to evaluate tax positions taken by the Company and recognize a tax liability if the Company has taken an uncertain
position that more likely than not would not be sustained upon examination by the Internal Revenue Service or other tax authorities.
Management has analyzed the tax positions taken by the Company, and has concluded that as of December 31, 2017, 2016 and 2015,
there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in
the financial statements. The Company is subject to routine audits by the Internal Revenue Service or other tax authorities, generally
for three years after the tax returns are filed; however, there are currently no audits for any tax periods in progress.



Recent Accounting Pronouncements.

In January 2016, the FASB issued ASU 2016-01, Financial
Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU
2016-01”). ASU 2016-01 retains many current requirements for the classification and measurement of financial instruments;
however, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments
in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. ASU
2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments. This guidance is effective
for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted for public business entities.
Management is currently evaluating the impact these changes will have on the Company’s consolidated financial statements
and disclosures.

In March 2016, the FASB issued ASU 2016-08, Revenue from
Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified
the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from
Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance
regarding performance obligations and licensing arrangements. The new standard will become effective for the Company on January
1, 2018, with early application permitted to the effective date of January 1, 2017. The Company is evaluating the effect that ASU
2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition
method nor has it determined the effect of the standard on its ongoing financial reporting. The guidance does not apply to revenue
associated with financial instruments, including loans and notes that are accounted for under other U.S. GAAP. As a result, the
Company does not expect the new revenue recognition guidance to have a material impact on the elements of its consolidated statements
of operations, most closely associated with financial instruments, including realized gains, fees, interest and dividend income.
The Company plans to adopt the revenue recognition guidance in the first quarter of 2018. The Company’s implementation efforts
include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts and related
accounting policies. While the Company has not yet identified any material changes in the timing of revenue recognition, the Company’s
review is ongoing, and it continues to evaluate the presentation of certain contract costs.

In August 2016, the FASB issued ASU 2016-15, “Statement
of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which will make eight targeted changes
to how cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU further clarifies how
the predominance principle should be applied to cash receipts and payments relating to more than one class of cash flows. The ASU
is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017.
The ASU is to be applied retrospectively for each period presented. The Company is currently evaluating the impact this ASU will
have on the Company’s consolidated statement of cash flows.

Reclassification.Certain amounts in the 2016 and 2015 financial statements have been reclassified in order to conform with the 2017 presentation.



NOTE
3 – SHARE TRANSACTIONS



Below
is a summary of transactions with respect to shares of the Company’s common stock during the years ended December 31, 2017,
2016 and 2015:





|                                                |  | Year Ended December 31, |           
|----------------------------------------------- |  | ----------------------- | ----------
|                                                |  | 2017                    |           
|                                                |  | Shares                  |           
|Gross proceeds from Offering                    |  |                         | 440,963.13
|Reinvestment of Distributions                   |  |                         | 22,461.05 
|Commissions and Dealer Manager Fees             |  |                         |           
|Net Proceeds to Company from Share Transactions |  |                         | 463,424.18









75







Status
of Continuous Public Offering



During
the years ended December 31, 2017, 2016 and 2015, the Company sold 440,963.13, 444,847.84, and 296,713.69 shares of common stock,
respectively, for gross proceeds of approximately $6,385,593, $6,683,706, and $4,404,003 at an average price per share of $14.48,
$15.02, and $14.83, respectively. The increase in Capital in excess of par value during the years ended December 31, 2017, 2016
and 2015 also includes reinvested stockholder distributions of $291,697, $215,591, and $96,756, respectively, for which the Company
issued 22,461.05, 15,548.74, and 6,789.86 shares of common stock, respectively.



The
proceeds from the issuance of common stock as presented on the accompanying statements of changes in net assets and statements
of cash flows are presented net of selling commissions and dealer manager fees of $606,188, $581,515, and $398,363 for the years
ended December 31, 2017, 2016 and 2015, respectively.



Share
Repurchase Program



The
Company intends to continue to conduct quarterly tender offers pursuant to its share repurchase program. The Company’s board
of directors will consider the following factors, among others, in making its determination regarding whether to cause the Company
to offer to repurchase shares of common stock and under what terms:



| | ● | the
    effect of such repurchases on the Company’s qualification as a RIC (including the consequences of any necessary asset
    sales);
| | - | -----------------------------------------------------------------------------------------------------------------------------------------

| | ● | the
    liquidity of the Company’s assets (including fees and costs associated with disposing of assets);
| | - | ---------------------------------------------------------------------------------------------------------

| | ● | the
    Company’s investment plans and working capital requirements;
| | - | --------------------------------------------------------------------

| | ● | the
    relative economies of scale with respect to the Company’s size;
| | - | -----------------------------------------------------------------------

| | ● | the
    Company’s history in repurchasing shares of common stock or portions thereof; and
| | - | -----------------------------------------------------------------------------------------

| | ● | the
    condition of the securities markets.
| | - | --------------------------------------------

The
Company currently intends to limit the number of shares of common stock to be repurchased during any calendar year to the number
of shares of common stock it can repurchase with the proceeds it receives from the issuance of shares of common stock under its
distribution reinvestment plan. At the discretion of the Company’s board of directors, the Company may also use cash on
hand, cash available from borrowings and cash from the liquidation of securities investments as of the end of the applicable period
to repurchase shares of common stock. In addition, the Company will limit the number of shares of common stock to be repurchased
in any calendar year to 10% of the weighted average number of shares of common stock outstanding in the prior calendar year, or
2.5% in each calendar quarter, though the actual number of shares of common stock that the Company offers to repurchase may be
less in light of the limitations noted above.



Our
board of directors reserves the right, in its sole discretion, to limit the number of shares to be repurchased for each class
by applying the limitations on the number of shares to be repurchased, noted above, on a per class basis. We further anticipate
that we will offer to repurchase such shares on each date of repurchase at a price equal to 90% of the current offering price
on each date of repurchase. If the amount of repurchase requests exceeds the number of shares we seek to repurchase, we will repurchase
shares on a pro-rata basis. As a result, we may repurchase less than the full amount of shares that shareholders submit for repurchase.
If we do not repurchase the full amount of the shares that shareholders have requested to be repurchased, or we determine not
to make repurchases of our shares, shareholders may not be able to dispose of their shares. Any periodic repurchase offers will
be subject in part to our available cash and compliance with the Company Act.



The
following table provides information concerning the Company’s repurchase of shares of common stock during the years ended
December 31, 2017 and 2016 (no repurchases were made prior to 2016):





76









|For
    the Three Months Ended |  | Repurchase
    Date    |  | Shares
    Repurchased |           |  | Percentage
    of Shares Tendered That Were Repurchased |     |  | Average
    Price Paid per Share |   |       | Aggregate
    Consideration for Repurchased Shares | 
|------------------------------ |  | ---------------------- |  | ---------------------- | --------- |  | ------------------------------------------------------- | --- |  | -------------------------------- | - | ----- | -------------------------------------------------- | 
|Fiscal
    2018                |  |                        |  |                        |           |  |                                                         |     |  |                                  |   |       |                                                    | 
|March
    31, 2018             |  | March
    28, 2018     |  |                        | 6,388.01  |  |                                                         | 11% |  |                                  | $ | 12.11 |                                                    | 
|Total                          |  |                        |  |                        | 6,388.01  |  |                                                         | 11% |  |                                  |   | 12.11 |                                                    | 
|Fiscal
    2017                |  |                        |  |                        |           |  |                                                         |     |  |                                  |   |       |                                                    | 
|March
    31, 2017             |  | January
    20, 2017   |  |                        | 8,482.60  |  |                                                         | 27% |  |                                  | $ | 13.87 |                                                    | 
|June
    30, 2017              |  | May
    12, 2017       |  |                        | 1,936.81  |  |                                                         | 6%  |  |                                  |   | 13.55 |                                                    | 
|September
    30, 2017         |  | September
    25, 2017 |  |                        | 5,968.22  |  |                                                         | 9%  |  |                                  |   | 12.30 |                                                    | 
|December
    31, 2017          |  | December
    22,2017   |  |                        | 6,212.40  |  |                                                         | 10% |  |                                  |   | 12.11 |                                                    | 
|Total                          |  |                        |  |                        | 22,600.03 |  |                                                         | 12% |  |                                  |   | 12.94 |                                                    | 
|Fiscal
    2016                |  |                        |  |                        |           |  |                                                         |     |  |                                  |   |       |                                                    | 
|September
    30, 2016         |  | July
    15, 2016      |  |                        | 8,482.60  |  |                                                         | 50% |  |                                  | $ | 13.80 |                                                    | 
|December
    31, 2016          |  | October
    14, 2016   |  |                        | 8,482.60  |  |                                                         | 48% |  |                                  |   | 13.80 |                                                    | 
|Total                          |  |                        |  |                        | 16,965.20 |  |                                                         | 49% |  |                                  | $ | 13.80 |                                                    | 



On
March 28, 2018, the Company repurchased 6,388.01 shares of common stock (representing 11.1% of the shares of common stock tendered
for repurchase) at $12.11 per share for aggregate consideration totaling $77,359.



NOTE
4 – RELATED PARTY TRANSACTIONS AND ARRANGEMENTS



The
Adviser and TFA and their affiliates will receive compensation and reimbursement for services relating to our offering and the
investment and management of its assets.



In
connection with the Offering, the Company has incurred registration, organization, operating and offering costs. Such costs have
been advanced by the Adviser. As discussed below, the Company has entered into an Expense Reimbursement Agreement with its Adviser.
For the period from inception through December 31, 2017, certain registration, organization, operating and offering costs have
been accounted for under the Expense Reimbursement Agreement and accordingly included in Reimbursement due from the Adviser on
the statements of financial position.



The
chart below, on a cumulative basis, discloses the components of the Reimbursement due from Adviser reflected on the Statements
of Financial Position:





|                                     |  | December 31, 2017 |            |   | December 31, 2016 |   |            | December 31, 2015 | 
|------------------------------------ |  | ----------------- | ---------- | - | ----------------- | - | ---------- | ----------------- | 
|Operating Expenses                   |  | $                 | 1,977,504  |   |                   | $ | 1,896,657  |                   | 
|Offering Costs                       |  |                   | 3,314,687  |   |                   |   | 2,765,662  |                   | 
|Due to related party offset          |  |                   | (4,707,407 | ) |                   |   | (4,213,469 | )                 | 
|Reimbursements received from Adviser |  |                   | (342,715   | ) |                   |   | (342,715   | )                 | 
|Other amounts due to affiliates      |  |                   | 15,559     |   |                   |   | 448        |                   | 
|Total Reimbursement due from Adviser |  | $                 | 257,628    |   |                   | $ | 106,583    |                   | 





Operating
Expenses are the amounts reimbursed by the Adviser for our operating costs and offering costs are the cumulative amount of organizational
and offering expenses reimbursed to us by the Adviser and subject to future reimbursement per the terms of our expense reimbursement
agreement.



Due
to related party offset represents the cash the Adviser paid directly for our operating and offering expenses and reimbursements
received from sponsor are the amounts the Adviser paid in cash to us for reimbursement of our operating and offering costs.



The
Company compensates the Adviser for investment services per an Investment Adviser Agreement (“Agreement”), approved
by the Company’s directors, calculated as the sum of (1) base management fee, calculated quarterly at 0.5% of the Company’s
average gross assets payable quarterly in arrears, and (2) an incentive fee upon capital gains determined and payable in arrears
as of the end of each quarter or upon liquidation of the Company or upon termination of Agreement at 20% of Company’s realized
capital gains, as defined. The Agreement expires





77







July 2018 and may continue automatically for successive annual periods, as approved
by the Company. All management fees earned by the Adviser prior to January 1, 2014 were waived by the Adviser.



As
a BDC, we will be subject to certain regulatory restrictions in making our investments. For example, we generally will not be
permitted to co-invest alongside our Adviser and its affiliates unless we obtain an exemptive order from the SEC or the transaction
is otherwise permitted under existing regulatory guidance, such as syndicated transactions where price is the only negotiated
term, and approval from our independent directors. As of December 31, 2017, the Company has two affiliate investments in ACON
IWP Investors I, L.L.C and Javlin Capital, LLC (held by TPJ Holdings, Inc., a wholly-owned subsidiary.)



The
Company compensates TFA for administration services per an Administration Agreement for costs and expenses incurred with the administration
and operation of the Company. These costs include the allocable portion of the compensation and related expenses of certain personnel
of TFA, providing administrative services to the Company on behalf of the Adviser. The Company reimburses TFA no less than quarterly
for all costs and expenses incurred pursuant to this Agreement. TFA allocates the cost of such services to the Company based on
factors such as total assets, revenues, time allocations and/or other reasonable metrics. Such agreement expires July 2018 and
may continue automatically for successive annual periods, as approved by the Company. These fees have been reimbursed from the
Adviser pursuant to the Expense Reimbursement Agreement discussed below.



The
following table describes the fees and expenses incurred under the investment advisory and administration agreement and the dealer
manager agreement during the years ended December 31, 2017, 2016 and 2015:





|                               |  |                              |  |                                  |  | Year Ended December 31, |        
|------------------------------ |  | ---------------------------- |  | -------------------------------- |  | ----------------------- | -------
|Related Party                  |  | Source Agreement             |  | Description                      |  | 2017                    |        
|Triton Pacific Adviser, LLC    |  | Investment Adviser Agreement |  | Base Management Fees             |  | $                       | 334,224
|Triton Pacific Adviser, LLC    |  | Investment Adviser Agreement |  | Capital Gains Incentive Fees(1)  |  | $                       | (334   
|TFA Associates, LLC            |  | Administration Agreement     |  | Administrative Services Expenses |  | $                       | 301,986
|Triton Pacific Securities, LLC |  | Dealer Manager Agreement     |  | Dealer Manager Fees(2)           |  | $                       | 122,150














| | (1) | During
                                         the years ended December 31, 2017, 2016 and 2015, the Company earned capital gains incentive
                                         fees of ($334), ($35,216), and $37,014, respectively, based on the performance of its
                                         portfolio, of which ($334), ($35,216), and $35,550, respectively, was based on unrealized
                                         gains, and $0, $0, and $1,464, respectively, was based on realized gains. No capital
                                         gains incentive fees are actually payable by the Company with respect to unrealized gains
                                         unless and until those gains are actually realized. See Note 2 for a discussion of the
                                         methodology employed by the Company in calculating the capital gains incentive fees.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | During
                                         the years ended December 31, 2017, 2016 and 2015, the Company paid the Dealer Manager
                                         $606,188, $581,515, and $398,363, respectively, in sales commissions and dealer fees.
                                         $122,150, $136,896, and $98,817 were retained by TPS, respectively, and the remainder
                                         re-allowed to third party participating broker dealers.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Expense
Reimbursement Agreement



On
March 27, 2014, the Company and its Adviser agreed to an Expense Support and Conditional Reimbursement Agreement, or the Expense
Reimbursement Agreement. The Expense Reimbursement Agreement was amended and restated effective November 17, 2014. Under the Expense
Reimbursement Agreement, as amended, the Adviser, in consultation with the Company, will pay up to 100% of both the Company’s
organizational and offering expenses and its operating expenses, all as determined by the Company and the Adviser. As used in
the Expense Reimbursement Agreement, operating expenses refer to third party operating costs and expenses incurred by the Company,
as determined under GAAP for investment management companies. Organizational and offering expenses include expenses incurred in
connection with the organization of the Company and expenses incurred in connection with its offering, which are recorded as a
component of equity. The Expense Reimbursement Agreement states that until the net proceeds to the Company from its offering are
at least $25 million, the Adviser will pay up to 100% of both the Company’s organizational and offering expenses and its
operating expenses. After the Company receives at least $25 million in net proceeds from its offering, the Adviser may, with the
Company’s consent, continue to make expense support payments to the Company in such amounts as are acceptable to the Company
and the Adviser. Any expense support payments shall be paid by the Adviser to the Company in any combination of cash, and/or offsets
against amounts otherwise due from the Company to the Adviser.





78







Under
the Expense Reimbursement Agreement as amended, once the Company has received at least $25 million in net proceeds from its offering,
during any quarter occurring within three years of the date on which the Company incurred any expenses that are funded by the
Adviser, the Company is required to reimburse the Adviser for any expense support payments the Company received from them. However,
with respect to any expense support payments attributable to the Company’s operating expenses, (i) the Company will only
reimburse the Adviser for expense support payments made by the Adviser to the extent that the payment of such reimbursement (together
with any other reimbursement paid during such fiscal year) does not cause “other operating expenses” (as defined below)
(on an annualized basis and net of any expense reimbursement payments received by the Company during such fiscal year) to exceed
the percentage of the Company’s average net assets attributable to shares of its common stock represented by “other
operating expenses” during the fiscal year in which such expense support payment from the Adviser was made (provided, however,
that this clause (i) shall not apply to any reimbursement payment which relates to an expense support payment from the Adviser
made during the same fiscal year); and (ii) the Company will not reimburse the Adviser for expense support payments made by the
Adviser if the annualized rate of regular cash distributions declared by the Company at the time of such reimbursement payment
is less than the annualized rate of regular cash distributions declared by the Company at the time the Adviser made the expense
support payment to which such reimbursement relates. “Other operating expenses” means the Company’s total operating
expenses excluding base management fees, incentive fees, organization and offering expenses, financing fees and costs, interest
expense, brokerage commissions and extraordinary expenses.





|Quarter
    Ended      |  | Amount
    of Expense Payment Obligation |  | Amount
    of Offering Cost Payment Obligation |  | Operating
    Expense Ratio as of the Date Expense Payment Obligation Incurred(1) |   | Annualized
    Distribution Rate as of the Date Expense Payment Obligation Incurred(2) |      | Eligible
    for Reimbursement Through
|---------------------- |  | ---------------------------------------- |  | ---------------------------------------------- |  | --------------------------------------------------------------------------------- | - | -------------------------------------------------------------------------------------- | ---- | --------------------------------------
|September
    30, 2012 |  | $21,826                                  |  |                                                |  | 432.69                                                                            | % |                                                                                        | -    |                                       
|December 31, 2012      |  | $26,111                                  |  |                                                |  | 531.09                                                                            | % |                                                                                        | -    |                                       
|March 31, 2013         |  | $30,819                                  |  |                                                |  | N/A                                                                               |   |                                                                                        | -    |                                       
|June 30, 2013          |  | $59,062                                  |  |                                                |  | N/A                                                                               |   |                                                                                        | -    |                                       
|September 30, 2013     |  | $65,161                                  |  |                                                |  | N/A                                                                               |   |                                                                                        | -    |                                       
|December 31, 2013      |  | $91,378                                  |  |                                                |  | 455.09                                                                            | % |                                                                                        | -    |                                       
|March 31, 2014         |  | $68,293                                  |  |                                                |  | 148.96                                                                            | % |                                                                                        | -    |                                       
|June 30, 2014          |  | $70,027                                  |  | $898,518                                       |  | 23.17                                                                             | % |                                                                                        | -    |                                       
|September 30, 2014     |  | $92,143                                  |  | $71,060                                        |  | 20.39                                                                             | % |                                                                                        | -    |                                       
|December 31, 2014      |  | $115,777                                 |  | $90,860                                        |  | 11.15                                                                             | % |                                                                                        | -    |                                       
|March 31, 2015         |  | $134,301                                 |  | $106,217                                       |  | 13.75                                                                             | % |                                                                                        | 2.01 | %                                     
|June 30, 2015          |  | $166,549                                 |  | $167,113                                       |  | 14.10                                                                             | % |                                                                                        | 3.20 | %                                     
|September 30, 2015     |  | $147,747                                 |  | $240,848                                       |  | 10.45                                                                             | % |                                                                                        | 3.20 | %                                     
|December 31, 2015      |  | $136,401                                 |  | $280,376                                       |  | 7.41                                                                              | % |                                                                                        | 3.60 | %                                     
|March 31, 2016         |  | $157,996                                 |  | $232,895                                       |  | 6.00                                                                              | % |                                                                                        | 3.52 | %                                     
|June 30, 2016          |  | $206,933                                 |  | $285,878                                       |  | 4.95                                                                              | % |                                                                                        | 3.52 | %                                     
|September 30, 2016     |  | $201,573                                 |  | $223,020                                       |  | 4.52                                                                              | % |                                                                                        | 3.13 | %                                     
|December 31, 2016      |  | $104,561                                 |  | $168,876                                       |  | 4.45                                                                              | % |                                                                                        | 3.11 | %                                     
|March 31, 2017         |  | $80,847                                  |  | $252,875                                       |  | 4.21                                                                              | % |                                                                                        | 3.19 | %                                     
|June 30, 2017          |  | $0                                       |  | $176,963                                       |  | 3.98                                                                              | % |                                                                                        | 3.18 | %                                     
|September 30, 2017     |  | $0                                       |  | $119,188                                       |  | 4.19                                                                              | % |                                                                                        | 3.00 | %                                     
|December 31, 2017      |  | $0                                       |  | $0                                             |  | N/A                                                                               |   |                                                                                        | N/A  |                                       







|(1) | “Operating
    Expense Ratio” includes all expenses borne by us, except for organizational and offering expenses, base management and
    incentive fees owed to our Adviser, financing fees and costs, interest
    expense, brokerage commissions and extraordinary expenses.The Company did not achieve its minimum offering amount
    until June 25, 2014 and as a result, did not invest the proceeds from the offering and realize any income from investments
    prior to the end of its fiscal quarter.                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | “Annualized
    Distribution Rate” equals the annualized rate of distributions paid to stockholders based on the amount of the regular
    cash distribution paid immediately prior to the date the expense support payment obligation was incurred by our Adviser. “Annualized
    Distribution Rate” does not include special cash or stock distributions paid to stockholders. The Company did not achieve
    its minimum offering amount until June 25, 2014 and as a result, did not have an opportunity to invest the proceeds from the
    offering and realize any income from investments or pay any distributions to stockholders prior to the end of its fiscal quarter.

In
addition, with respect to any expense support payment attributable to the Company’s organizational and offering expenses,
the Company will only reimburse the Adviser for expense support payments made by the Adviser to the extent that the payment of
such reimbursement (together with any other reimbursement for organizational and





79







offering expenses paid during such fiscal year)
is limited to 15% of cumulative gross sales proceeds from the Company’s offering including the sales load (or dealer manager
fee) paid by the Company.



The
Company or the Adviser may terminate the Expense Reimbursement Agreement at any time upon thirty days’ written notice; however,
the Adviser has indicated that it expects to continue such reimbursements until it deems that the Company has achieved economies
of scale sufficient to ensure that the Company bears a reasonable level of expenses in relation to its income. The Expense Reimbursement
Agreement will automatically terminate upon termination of the Investment Advisory Agreement or upon the Company’s liquidation
or dissolution.



The
Expense Reimbursement Agreement is, by its terms, effective retroactively to the Company’s inception date of April 29, 2011
for operating expenses and from the break of escrow on June 25, 2014 for offering expenses. As of December 31, 2017, $5,292,191
has been recorded as Reimbursement due from the Adviser pursuant to the Expense Reimbursement Agreement. Of this, $4,707,407 representing
an amount due to the Adviser, was netted against the Reimbursement due from Adviser and $342,715 was paid to the Company by the
Adviser.



Beginning
the year ended December 31, 2016, the Adviser began to reimburse less than 100% of operating expenses, and for the year ended
December 31, 2017, the Adviser did not reimburse any operating expenses after the first quarter. Additionally, the Adviser did
not reimburse any offering expenses for the fourth quarter of 2017. Of these offering and operating expenses, $1,701,035 has exceeded
the three-year period for repayment and will not be repayable by the Company.



NOTE
5 – DISTRIBUTIONS



The
following table reflects the cash distributions per share that the Company declared and paid on its common stock during the years
ended December 31, 2017, 2016 and 2015:





80







|                     |  |  | Distribution |        
|-------------------- |  |  | ------------ | -------
|Fiscal
    2017      |  |  | Per Share    |        
|January
    27, 2017 |  |  | $            | 0.04000
|February 24, 2017    |  |  | $            | 0.04000
|March 23, 2017       |  |  | $            | 0.04000
|April 27, 2017       |  |  | $            | 0.04000
|May 25, 2017         |  |  | $            | 0.04000
|June 23, 2017        |  |  | $            | 0.04000
|July 21, 2017        |  |  | $            | 0.04000
|August 29, 2017      |  |  | $            | 0.03417
|September 28, 2017   |  |  | $            | 0.03417
|October 26, 2017     |  |  | $            | 0.03417
|November 27, 2017    |  |  | $            | 0.03370
|December 26, 2017    |  |  | $            | 0.03370
|                     |  |  |              |        
|Fiscal
    2016      |  |  |              |        
|January 22, 2016     |  |  | $            | 0.04500
|February 16, 2016    |  |  | $            | 0.04500
|March 23, 2016       |  |  | $            | 0.04500
|April 21, 2016       |  |  | $            | 0.04500
|May 19, 2016         |  |  | $            | 0.04500
|June 23, 2016        |  |  | $            | 0.04500
|July 21, 2016        |  |  | $            | 0.04000
|August 25, 2016      |  |  | $            | 0.04000
|September 22, 2016   |  |  | $            | 0.04000
|October 20, 2016     |  |  | $            | 0.04000
|November 18, 2016    |  |  | $            | 0.04000
|December 20, 2016    |  |  | $            | 0.04000
|                     |  |  |              |        
|Fiscal
    2015      |  |  |              |        
|January 20, 2015     |  |  | $            | 0.07545
|April 13, 2015       |  |  | $            | 0.11600
|April 29, 2015       |  |  | $            | 0.04000
|May 29, 2015         |  |  | $            | 0.04000
|June 29, 2015        |  |  | $            | 0.04000
|July 30, 2015        |  |  | $            | 0.04000
|August 28, 2015      |  |  | $            | 0.04000
|September 29, 2015   |  |  | $            | 0.04000
|October 22.2015      |  |  | $            | 0.04500
|November 25, 2015    |  |  | $            | 0.04500
|December 24, 2015    |  |  | $            | 0.04500





Prior
to April 2015, the Company’s distributions were paid quarterly in arrears. On April 2, 2015, the Company authorized and
declared a first quarter cash distribution of $0.116 per share, to the shareholders of record as of April 13, 2015. Beginning
April 2015, the Company commenced the declaration and payment of monthly distributions, payable in advance, in each case, subject
to the discretion of the Company’s board of directors and applicable legal restrictions.



On
January 25, 2018, February 23, 2018, and March 27, 2018 the Company authorized and declared a cash distribution of $0.0337
per share for the months of January, February and March 2018, to the shareholders of record as of January 29, 2018, February
28, 2018, and March 28, 2018 respectively. The timing and amount of any future distributions to stockholders are subject to
applicable legal restrictions and the sole discretion of the Company’s board of directors.



The
Company has adopted an “opt in” distribution reinvestment plan for its stockholders. As a result, if the Company makes
a cash distribution, its stockholders will receive distributions in cash unless they specifically “opt



81







in”
to the distribution reinvestment plan so as to have their cash distributions reinvested in additional shares of the Company’s
common stock. However, certain state authorities or regulators may impose restrictions from time to time that may prevent or limit
a stockholder’s ability to participate in the distribution reinvestment plan.



The
Company may fund its cash distributions to stockholders from any sources of funds legally available to it, including offering
proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains
proceeds from the sale of assets, dividends or other distributions paid to the Company on account of preferred and common equity
investments in portfolio companies and expense reimbursements from the Adviser. The Company has not established limits on the
amount of funds it may use from available sources to make distributions.



The
following table reflects the sources of the cash distributions on a tax basis that the Company paid on its common stock during
the years ended December 31, 2017, 2016 and 2015:





|                                                              |  | 2017                    |         |  | 2016       |  |     | 2015                    | 
|------------------------------------------------------------- |  | ----------------------- | ------- |  | ---------- |  | --- | ----------------------- | 
|Source
    of Distribution                                    |  | Distribution
    Amount |         |  | Percentage |  |     | Distribution
    Amount | 
|Offering proceeds                                             |  | $                       | -       |  |            |  | -   |                         | 
|Borrowings                                                    |  |                         | -       |  |            |  | -   |                         | 
|Net investment income
    (prior to expense reimbursement)(1) |  |                         | -       |  |            |  | -   |                         | 
|Short-term
    capital gains proceeds from the sale of assets |  |                         | 47,998  |  |            |  | 9   | %                       | 
|Long-term capital gains
    proceeds from the sale of assets  |  |                         | -       |  |            |  | -   |                         | 
|Distributions from
    common equity (return of capital)      |  |                         | 493,061 |  |            |  | 91  | %                       | 
|Expense
    reimbursement from sponsor                        |  |                         | -       |  |            |  | -   |                         | 
|Total                                                         |  | $                       | 541,059 |  |            |  | 100 | %                       | 










| | (1) | During
                                         the year ended December 31, 2017, 93.7% of the Company’s gross investment income
                                         was attributable to cash income earned, and 6.3% was attributable to non-cash accretion
                                         of discount and paid-in-kind interest.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The
Company’s net investment income (loss) on a tax basis for the years ended December 31, 2017, 2016 and 2015 was ($192,563),
$335,572, and $174,880, respectively. As of December 31, 2017, 2016 and 2015, the Company had ($2,126,246), $32,116, and $189,124,
respectively, of undistributed (overdistributed) net investment income and realized gains on a tax basis.



The
primary difference between the Company’s GAAP-basis net investment income and its tax-basis net investment income (loss)
is due to the reversal of the required accrual for GAAP purposes of incentive fees on unrealized gains even though no such incentive
fees on unrealized gains are payable by the Company for the years ended December 31, 2017, 2016 and 2015.



The
following table sets forth reconciliation between GAAP basis net investment income and tax basis net investment income (loss)
for the years ended December 31, 2017, 2016 and 2015:





|                                                          |  | Year
    Ended December 31, |         
|--------------------------------------------------------- |  | --------------------------- | --------
|                                                          |  | 2017                        |         
|GAAP basis
    net investment income (loss)               |  | $                           | (192,229
|Reversal of incentive
    fee accrual on unrealized gains |  |                             | (334    
|Other
    book-tax differences                            |  |                             | -       
|Tax-basis
    net investment income (loss)                |  | $                           | (192,563



The
determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s
fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. The actual
tax characteristics of distributions to stockholders are reported to stockholders annually on Form 1099-DIV.



As
of December 31, 2017, 2016 and 2015, the components of accumulated earnings on a tax basis were as follows:





82









|                                                                                      |  | Year
    Ended December 31, |           
|------------------------------------------------------------------------------------- |  | --------------------------- | ----------
|                                                                                      |  | 2017                        |           
|Distributable
    realized gains (long-term capital gains)                            |  | $                           | 65,363    
|Distributable ordinary
    income (loss) (income and short-term capital gains (loss)) |  |                             | (677,099  
|Net
    unrealized appreciation (depreciation) on investments                         |  |                             | (1,514,510
|Total                                                                                 |  | $                           | (2,126,246





The
aggregate cost of the Company’s investments for U.S. federal income tax purposes totaled $13,550,047, $10,597,454, and $5,578,844
for the years ended December 31, 2017, 2016 and 2015, respectively. The aggregate net unrealized appreciation (depreciation) on
investments on a tax basis was ($1,514,510), $1,666, and $177,748 as of December 31, 2017, 2016 and 2015, respectively.



NOTE
6 – INVESTMENT PORTFOLIO



The
following table summarizes the composition of the Company’s investment portfolio at amortized cost and fair value as of
December 31, 2017, 2016 and 2015:





|                                     |  |                                      |            |  |                               |   |            |                                              |  |  |                                      |   |  |                               |            |  |                                              |   |            |                                      | 
|------------------------------------ |  | ------------------------------------ | ---------- |  | ----------------------------- | - | ---------- | -------------------------------------------- |  |  | ------------------------------------ | - |  | ----------------------------- | ---------- |  | -------------------------------------------- | - | ---------- | ------------------------------------ | 
|                                     |  | December
    31, 2017                |            |  | December
    31, 2016         |   |            | December
    31, 2015                        | 
|                                     |  | Investments
    at Amortized Cost(1) |            |  | Investments
    at Fair Value |   |            | Fair
    Value Percentage of Total Portfolio |  |  | Investments
    at Amortized Cost(1) |   |  | Investments
    at Fair Value |            |  | Fair
    Value Percentage of Total Portfolio |   |            | Investments
    at Amortized Cost(1) | 
|Senior Secured
    Loans—First Lien  |  | $                                    | 7,714,423  |  |                               |   | 7,690,952  |                                              |  |  | 64                                   | % |  | $                             | 6,680,615  |  |                                              |   | 6,761,313  |                                      | 
|Senior Secured Loans—Second
    Lien |  |                                      | 3,919,236  |  |                               |   | 3,806,683  |                                              |  |  | 32                                   | % |  |                               | 2,024,991  |  |                                              |   | 1,967,658  |                                      | 
|Subordinated Debt                    |  |                                      | 666,389    |  |                               |   | -          |                                              |  |  | 0                                    | % |  |                               | 646,901    |  |                                              |   | 646,901    |                                      | 
|Equity/Other                         |  |                                      | 1,250,000  |  |                               |   | 537,903    |                                              |  |  | 4                                    | % |  |                               | 1,250,000  |  |                                              |   | 1,228,301  |                                      | 
|Total                                |  | $                                    | 13,550,048 |  |                               | $ | 12,035,538 |                                              |  |  | 100                                  | % |  | $                             | 10,602,507 |  |                                              | $ | 10,604,173 |                                      | 





|(1) | Amortized
    cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable,
    on investments.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------



The
table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio
assets in such industries as of December 31, 2017, 2016 and 2015:





|                                             |  |                       |            |  |                       |  |       |                       |  |   |               |  |  |       |      
|-------------------------------------------- |  | --------------------- | ---------- |  | --------------------- |  | ----- | --------------------- |  | - | ------------- |  |  | ----- | -----
|                                             |  | December
    31, 2017 |            |  | December
    31, 2016 |  |       | December
    31, 2015 | 
|                                             |  | Fair                  |            |  | Percentage of         |  |       | Fair                  |  |   | Percentage of |  |  | Fair  |      
|Industry
    Classification                  |  | Value                 |            |  | Portfolio             |  |       | Value                 |  |   | Portfolio     |  |  | Value |      
|Automotive
    Repair, Services, and Parking |  | $                     | -          |  |                       |  | 0.0   | %                     |  | $ | 122,459       |  |  |       | 1.2  
|Beverage, Food &
    Tobacco                 |  |                       | 1,618,327  |  |                       |  | 13.4  | %                     |  |   | 1,162,891     |  |  |       | 11.0 
|Business Services                            |  |                       | 4,325,419  |  |                       |  | 35.8  | %                     |  |   | 2,793,526     |  |  |       | 26.3 
|Consumer Services                            |  |                       | 1,671,168  |  |                       |  | 13.9  | %                     |  |   | 955,659       |  |  |       | 9.0  
|Energy: Oil & Gas                            |  |                       | 337,488    |  |                       |  | 2.8   | %                     |  |   | 346,500       |  |  |       | 3.3  
|Healthcare & Pharmaceuticals                 |  |                       | 734,869    |  |                       |  | 6.1   | %                     |  |   | 1,403,008     |  |  |       | 13.2 
|High Tech Industries                         |  |                       | 833,178    |  |                       |  | 6.9   | %                     |  |   | 1,016,921     |  |  |       | 9.6  
|Hotel, Gaming &
    Leisure                  |  |                       | 352,809    |  |                       |  | 2.9   | %                     |  |   | -             |  |  |       | 0.0  
|Media: Diversified
    and Production        |  |                       | 334,586    |  |                       |  | 2.8   | %                     |  |   | 347,375       |  |  |       | 3.3  
|Metals & Mining                              |  |                       | 1,143,870  |  |                       |  | 9.5   | %                     |  |   | 245,625       |  |  |       | 2.3  
|Paper and Allied Products                    |  |                       | -          |  |                       |  | 0.0   | %                     |  |   | 115,294       |  |  |       | 1.1  
|Retail                                       |  |                       | -          |  |                       |  | 0.0   | %                     |  |   | 712,500       |  |  |       | 6.7  
|Specialty Finance                            |  |                       | -          |  |                       |  | 0.1   | %                     |  |   | 1,184,130     |  |  |       | 11.2 
|Telecommunications                           |  |                       | 496,322    |  |                       |  | 4.2   | %                     |  |   | -             |  |  |       | 0.0  
|Transportation: Cargo                        |  |                       | -          |  |                       |  | 0.0   | %                     |  |   | -             |  |  |       | 0.0  
|Wholesale Trade-Durable
    Goods            |  |                       | -          |  |                       |  | 0.0   | %                     |  |   | -             |  |  |       | 0.0  
|Wholesale
    Trade-Nondurable Goods         |  |                       | 187,502    |  |                       |  | 1.6   | %                     |  |   | 198,285       |  |  |       | 1.8  
|Total                                        |  | $                     | 12,035,538 |  |                       |  | 100.0 | %                     |  | $ | 10,604,173    |  |  |       | 100.0



On
June 30, 2017, the Company made the decision to write down the carrying value of its investment value in Javlin Financial. The
decision was due to performance issues within Javlin Financial’s core business and a breakdown in restructuring negotiations
between the Company, its lenders, and Javlin Financial’s controlling shareholder. It is unknown at this time if there will
be any value to the investment.



83









NOTE
7 – FAIR VALUE OF FINANCIAL INSTRUMENTS



Under
existing accounting guidance, fair value is defined as the price that the Company would receive upon selling an investment or
pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for
the investment. This accounting guidance emphasizes that valuation techniques maximize the use of observable market inputs and
minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing
an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs
that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained
from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions market participants would
use in pricing an asset or liability developed based on the best information available in the circumstances.



The
Company classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting
guidance:



Level
1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities.



Level
2: Inputs that are quoted prices for similar assets or liabilities in active markets.



Level
3: Inputs that are unobservable for an asset or liability.



A
financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant
to the fair value measurement.



As
of December 31, 2017, 2016 and 2015, the Company’s investments were categorized as follows in the fair value hierarchy:



|Valuation
    Inputs                            |  | December
    31, 2017 |            |  | December
    31, 2016 |   |            | December
    31, 2015 | 
|----------------------------------------------- |  | --------------------- | ---------- |  | --------------------- | - | ---------- | --------------------- | 
|Level 1—Price
    quotations in active markets  |  | $                     | -          |  |                       | $ | -          |                       | 
|Level 2—Significant
    other observable inputs |  |                       | -          |  |                       |   | -          |                       | 
|Level
    3—Significant unobservable inputs     |  |                       | 12,035,538 |  |                       |   | 10,604,173 |                       | 
|Total                                           |  | $                     | 12,035,538 |  |                       | $ | 10,604,173 |                       | 



The
Company’s investments as of December 31, 2017 consisted of debt securities that are traded on a private over-the-counter
market for institutional investors, a subordinated convertible note and two equity investments. The Company valued its debt investments
by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which were provided
by independent third-party pricing services and screened for validity by such services. The determination of fair market value
for the equity positions were determined by considering, among other factors, various income scenarios and multiples of earnings
before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues, waterfall and liquidation
priority and market comparables, book value multiples, economic profits and portfolio multiples.



The
Company may periodically benchmark the bid and ask prices it receives from the third-party pricing services against the actual
prices at which the Company purchases and sells its investments. Based on the results of the benchmark analysis and the experience
of the Company’s management in purchasing and selling these investments, the Company believes that these prices are reliable
indicators of fair value. However, because of the private nature of this marketplace (meaning actual transactions are not publicly
reported), the Company believes that these valuation inputs are classified as Level 3 within the fair value hierarchy. The Company’s
board of directors reviewed and approved the valuation determinations made with respect to these investments in a manner consistent
with the Company’s valuation process.



The
significant unobservable inputs used in the market approach of fair value measurement of our investments are the market multiples
of EBITDA of comparable companies. The Company selects a population of companies for each investment with similar operations and
attributes of the portfolio company. Using these guideline companies’ data, a range of multiples of enterprise value to
EBITDA is calculated. The Company selects percentages from the range of multiples for purposes of determining the portfolio company’s
estimated enterprise value based on said multiple and generally the latest twelve months’ EBITDA of the portfolio company.
Significant increases or decreases in enterprise value may result in increases or decreases in the fair value estimate of the
equity investment.





84







The
following is a reconciliation for the year ended December 31, 2017 of investments for which significant unobservable inputs (Level
3) were used in determining fair value:





|                                                                                                                                                                                                               |  | For the year
    ended December 31, 2017 |           
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------- | ----------
|                                                                                                                                                                                                               |  | Senior 
    Secured
Loans - First Lien   |           
|Fair value
    at beginning of period                                                                                                                                                                          |  | $                                        | 6,761,313 
|Accretion
    of discount (amortization of premium)                                                                                                                                                            |  |                                          | 21,761    
|Net
    realized gain (loss)                                                                                                                                                                                   |  |                                          | 50,321    
|Net
    change in unrealized appreciation (depreciation)                                                                                                                                                       |  |                                          | (104,169  
|Purchases                                                                                                                                                                                                      |  |                                          | 4,392,250 
|Paid-in-kind
    interest                                                                                                                                                                                      |  |                                          | -         
|Sales
    and redemptions                                                                                                                                                                                      |  |                                          | (3,430,524
|Net
    transfers in or out of Level 3                                                                                                                                                                         |  |                                          |           
|Fair value at end of
    period                                                                                                                                                                                |  | $                                        | 7,690,952 
|                                                                                                                                                                                                               |  |                                          |           
|The amount of total
    gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses
    relating to investments still held at the reporting date |  | $                                        | (104,169  









The
following is a reconciliation for the year ended December 31, 2016 of investments for which significant unobservable inputs (Level
3) were used in determining fair value:





|                                                                                                                                                                                                               |  | For the year
    ended December 31, 2016 |          
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------- | ---------
|                                                                                                                                                                                                               |  | Senior 
    Secured
Loans - First Lien   |          
|Fair value
    at beginning of period                                                                                                                                                                          |  | $                                        | 2,389,377
|Accretion
    of discount (amortization of premium)                                                                                                                                                            |  |                                          | 12,124   
|Net
    realized gain (loss)                                                                                                                                                                                   |  |                                          | 19,433   
|Net
    change in unrealized appreciation (depreciation)                                                                                                                                                       |  |                                          | 117,410  
|Purchases                                                                                                                                                                                                      |  |                                          | 5,083,375
|Paid-in-kind
    interest                                                                                                                                                                                      |  |                                          | -        
|Sales
    and redemptions                                                                                                                                                                                      |  |                                          | (860,406 
|Net
    transfers in or out of Level 3                                                                                                                                                                         |  |                                          | -        
|Fair value at end of
    period                                                                                                                                                                                |  | $                                        | 6,761,313
|                                                                                                                                                                                                               |  |                                          |          
|The amount of total
    gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses
    relating to investments still held at the reporting date |  | $                                        | 117,410  







The
following is a reconciliation for the year ended December 31, 2015 of investments for which significant unobservable inputs (Level
3) were used in determining fair value:





|                                                                                                                                                                                                               |  |                                          |           |   |                                        |   |           |                                   |  |   |              |  |  |       |          
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------- | --------- | - | -------------------------------------- | - | --------- | --------------------------------- |  | - | ------------ |  |  | ----- | ---------
|                                                                                                                                                                                                               |  | For
    the year ended December 31, 2015 |          
|                                                                                                                                                                                                               |  | Senior
    Secured Loans - First Lien    |           |   | Senior
    Secured Loans - Second Lien |   |           | Subordinated
    Convertible Debt |  |   | Equity/Other |  |  | Total |          
|Fair value at beginning of
    period                                                                                                                                                                          |  | $                                        | 1,351,932 |   |                                        | $ | 119,375   |                                   |  | $ | -            |  |  | $     | -        
|Accretion
    of discount (amortization of premium)                                                                                                                                                            |  |                                          | 4,185     |   |                                        |   | 2,389     |                                   |  |   | -            |  |  |       | -        
|Net
    realized gain (loss)                                                                                                                                                                                   |  |                                          | 7,321     |   |                                        |   | -         |                                   |  |   | -            |  |  |       | -        
|Net
    change in unrealized appreciation (depreciation)                                                                                                                                                       |  |                                          | (36,715   | ) |                                        |   | (23,014   | )                                 |  |   | -            |  |  |       | 238,266  
|Purchases                                                                                                                                                                                                      |  |                                          | 1,477,625 |   |                                        |   | 943,125   |                                   |  |   | 600,000      |  |  |       | 1,250,000
|Paid-in-kind
    interest                                                                                                                                                                                      |  |                                          | -         |   |                                        |   | -         |                                   |  |   | 9,219        |  |  |       | -        
|Sales
    and redemptions                                                                                                                                                                                      |  |                                          | (414,971  | ) |                                        |   | -         |                                   |  |   | -            |  |  |       | -        
|Net
    transfers in or out of Level 3                                                                                                                                                                         |  |                                          | -         |   |                                        |   | -         |                                   |  |   | -            |  |  |       | -        
|Fair value at end of period                                                                                                                                                                                    |  | $                                        | 2,389,377 |   |                                        | $ | 1,041,875 |                                   |  | $ | 609,219      |  |  | $     | 1,488,266
|                                                                                                                                                                                                               |  |                                          |           |   |                                        |   |           |                                   |  |   |              |  |  |       |          
|The amount of total
    gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses
    relating to investments still held at the reporting date |  | $                                        | (36,715   | ) |                                        | $ | (23,014   | )                                 |  | $ | -            |  |  | $     | 238,266  





The
valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of December
31, 2017 were as follows:





85









|Asset
    Category                 |  | Fair
    Value |            | Primary
    Valuation Technique |                                                    | Unobservable
    Inputs      |                              | Range          |                    | Weighted
    Average
|---------------------------------- |  | -------------- | ---------- | ------------------------------- | -------------------------------------------------- | ---------------------------- | ---------------------------- | -------------- | ------------------ | --------------------
|Senior
    Secured First Lien Debt |  |                | 7,690,952  |                                 | Market
    quotes                                  |                              | Indicative
    dealer quotes |                | 78.05
    - 102.00 |                     
|Senior Secured Second Lien Debt    |  | 3,806,683      |            | Market quotes                   |                                                    | Indicative dealer
    quotes |                              | 26.67 - 103.00 |                    | 98.55               
|Subordinated Debt                  |  |                | -          |                                 | Distribution waterfall/
    liquidation priorities |                              | N/A                          |                | N/A                |                     
|Equity/Other                       |  |                | -          |                                 | Distribution waterfall/
    liquidation priorities |                              | N/A                          |                | N/A                |                     
|Equity/Other                       |  |                | 537,903    |                                 | Market comparables                                 |                              | EBITDA multiples
    (x)     |                | 7.15x - 9.15x      |                     
|Total                              |  | $              | 12,035,538 |                                 |                                                    |                              |                              |                |                    |                     





The
valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of December
31, 2016 were as follows:





|Asset
    Category                 |  | Fair
    Value |            | Primary
    Valuation Technique |                    | Unobservable
    Inputs      |                              | Range          |                                 | Weighted
    Average
|---------------------------------- |  | -------------- | ---------- | ------------------------------- | ------------------ | ---------------------------- | ---------------------------- | -------------- | ------------------------------- | --------------------
|Senior
    Secured First Lien Debt |  |                | 6,761,313  |                                 | Market
    quotes  |                              | Indicative
    dealer quotes |                | 79.50
    - 102.00              |                     
|Senior Secured Second Lien Debt    |  | 1,967,658      |            | Market quotes                   |                    | Indicative dealer
    quotes |                              | 58.00 - 102.19 |                                 | 94.31               
|Subordinated Debt                  |  |                | 646,901    |                                 | Market comparables |                              | Book value multiples
    (x) |                | 14.6% - 17.4%/ 2.4x
    - 34.0x |                     
|Equity/Other                       |  |                | 537,229    |                                 | Market comparables |                              | Book value multiples
    (x) |                | 14.6% - 17.4%/ 2.4x
    - 34.0x |                     
|Equity/Other                       |  |                | 691,072    |                                 | Market comparables |                              | EBITDA multiples
    (x)     |                | 7.15x - 9.15x                   |                     
|Total                              |  | $              | 10,604,173 |                                 |                    |                              |                              |                |                                 |                     







The
valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of December
31, 2015 were as follows:





|                                |  |                |           |                                 |                    |                         |                              |       |                |                 |      
|------------------------------- |  | -------------- | --------- | ------------------------------- | ------------------ | ----------------------- | ---------------------------- | ----- | -------------- | --------------- | -----
|Asset
    Category              |  | Fair
    Value |           | Primary
    Valuation Technique |                    | Unobservable
    Inputs |                              | Range |                | WeightedAverage
|Senior Secured First Lien Debt  |  | $              | 2,389,377 |                                 | Market quotes      |                         | Indicative dealer
    quotes |       | 87.00 - 100.00 |                 | 97.36
|Senior Secured Second Lien Debt |  |                | 1,041,875 |                                 | Market quotes      |                         | Indicative dealer
    quotes |       | 83.17 - 99.88  |                 | 93.01
|Subordinated Debt               |  |                | 609,219   |                                 | Market comparables |                         | EBITDA multiples
    (x)     |       | 11.9x - 15.0x  |                 | 13.0x
|Equity/Other                    |  |                | 750,000   |                                 | Market comparables |                         | Book value multiples
    (x) |       | 1.2x - 2.6x    |                 | 1.9x 
|Equity/Other                    |  |                | 738,266   |                                 | Market comparables |                         | EBITDA multiples
    (x)     |       | 8.15x          |                 | 8.15x
|Total                           |  | $              | 5,528,737 |                                 |                    |                         |                              |       |                |                 |      





On
June 30, 2017, the Company made the decision to write down the carrying value of its investment value in Javlin Financial. The
decision was due to performance issues within Javlin Financial’s core business and a breakdown in restructuring negotiations
between the Company, its lenders, and Javlin Financial’s controlling shareholder. It is unknown at this time if there will
be any value to the investment.



NOTE
8 – FINANCIAL HIGHLIGHTS



The
following is a schedule of financial highlights of the Company for the years ended December 31, 2017, 2016 and 2015:





86









|                                                                                    |  | Year
    Ended 
    December 31, 2017 |            |   | Year
    Ended 
    December 31, 2016 |   |            | Year
    Ended 
    December 31, 2015 | 
|----------------------------------------------------------------------------------- |  | ------------------------------------- | ---------- | - | ------------------------------------- | - | ---------- | ------------------------------------- | 
|Per
    Share Data:                                                                 |  |                                       |            |   |                                       |   |            |                                       | 
|Net asset
    value, beginning of period                                            |  | $                                     | 13.55      |   |                                       | $ | 13.75      |                                       | 
|Results
    of operations(1)                                                        |  |                                       |            |   |                                       |   |            |                                       | 
|Net
    investment income (loss)                                                    |  |                                       | (0.16      | ) |                                       |   | 0.48       |                                       | 
|Net
    realized and unrealized appreciation (depreciation) on investments(2)       |  |                                       | (1.12      | ) |                                       |   | (0.14      | )                                     | 
|Net increase (decrease)
    in net assets resulting from operations                 |  |                                       | (1.28      | ) |                                       |   | 0.34       |                                       | 
|Stockholder
    distributions(3)                                                    |  |                                       |            |   |                                       |   |            |                                       | 
|Distributions
    from net investment income                                        |  |                                       | (0.41      | ) |                                       |   | (0.51      | )                                     | 
|Distributions
    from net realized gain on investments                             |  |                                       | (0.04      | ) |                                       |   | -          |                                       | 
|Net decrease in net
    assets resulting from stockholder distributions             |  |                                       | (0.45      | ) |                                       |   | (0.51      | )                                     | 
|Capital share transactions                                                          |  |                                       |            |   |                                       |   |            |                                       | 
|Issuance
    of common stock(4)                                                     |  |                                       | 0.07       |   |                                       |   | (0.03      | )                                     | 
|Offering
    costs(1)                                                               |  |                                       | -          |   |                                       |   | -          |                                       | 
|Net increase (decrease)
    in net assets resulting from capital share transactions |  |                                       | 0.07       |   |                                       |   | (0.03      | )                                     | 
|Net asset value, end
    of period                                                  |  | $                                     | 11.89      |   |                                       | $ | 13.55      |                                       | 
|Shares outstanding,
    end of period                                               |  |                                       | 1,417,233  |   |                                       |   | 976,406    |                                       | 
|Total
    return(5)                                                                 |  |                                       | -8.9       | % |                                       |   | 2.2        | %                                     | 
|Ratio/Supplemental
    Data:                                                        |  |                                       |            |   |                                       |   |            |                                       | 
|Net assets, end of
    period                                                       |  | $                                     | 16,849,237 |   |                                       | $ | 13,228,702 |                                       | 
|Ratio of net investment
    income to average net assets                            |  |                                       | -1.3       | % |                                       |   | 3.6        | %                                     | 
|Ratio of total operating
    expenses to average net assets                         |  |                                       | 7.3        | % |                                       |   | 7.2        | %                                     | 
|Ratio of expenses reimbursed
    by sponsor to average net assets                   |  |                                       | 0.5        | % |                                       |   | 6.5        | %                                     | 
|Ratio of expense recoupment
    payable to sponsor to average net assets            |  |                                       | 0.0        | % |                                       |   | 0.0        | %                                     | 
|Ratio of capital gain
    incentive fee to average net assets                       |  |                                       | 0.00       | % |                                       |   | -0.34      | %                                     | 
|Ratio
    of net operating expenses to average net assets                           |  |                                       | 6.7        | % |                                       |   | 0.7        | %                                     | 
|Portfolio
    turnover(6)                                                           |  |                                       | 28.6       | % |                                       |   | 10.8       | %                                     | 












|(1) | The per share data
    was derived by using the weighted average shares outstanding for the years ended December 31, 2017, 2016 and 2015.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------

|(2) | The amount shown
    for a share outstanding throughout the year may not agree with the change in the aggregate gains and losses in portfolio securities
    for the year because of the timing of sales of the Company’s shares in relation to fluctuating market values for the
    portfolio.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | The per share data
    for distributions reflects the actual amount of distributions paid per share during the applicable period.                                                                                                                                                               

|(4) | The issuance of
    common stock on a per share basis reflects the incremental net asset value changes as a result of the issuance of shares of
    common stock in the Company’s continuous public offering and pursuant to the Company’s distribution reinvestment
    plan. The issuance of common stock at an offering price, net of sales commissions and dealer manager fees, that is greater
    than the net asset value per share results in an increase in net asset value per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(5) | The total return
    for each period presented was calculated by taking the net asset value per share as of the end of the applicable period, adding
    the cash distributions per share which were declared during the applicable calendar year and dividing the total by the net
    asset value per share at the beginning of the applicable year. The total return does not consider the effect of the sales
    load from the sale of the Company’s common stock. The total return includes the effect of the issuance of shares at
    a net offering price that is greater than net asset value per share, which causes an increase in net asset value per share.
    The historical calculation of total return in the table should not be considered a representation of the Company’s future
    total return, which may be greater or less than the return shown in the table due to a number of factors, including the Company’s
    ability or inability to make investments in companies that meet its investment criteria, the interest rate payable on the
    debt securities the Company acquires, the level of the Company’s expenses, variations in and the timing of the recognition
    of realized and unrealized gains or losses, the degree to which the Company encounters competition in its markets and general
    economic conditions. As a result of these factors, results for any previous period should not be relied upon as being indicative
    of performance in future periods. The total return calculations set forth above represent the total return on the Company’s
    investment portfolio during the applicable period and are calculated in accordance with GAAP. These return figures do not
    represent an actual return to stockholders.



NOTE
9 – COMMITMENTS AND CONTINGENCIES



The
Company enters into contracts that contain a variety of indemnification provisions. The Company’s maximum exposure under
these arrangements is unknown; however, the Company has not had prior claims or losses pursuant to these contracts. Management
has reviewed the Company’s existing contracts and expects the risk of loss to the Company to be remote.



The
Company is not currently subject to any material legal proceedings and, to the Company’s knowledge, no material legal proceedings
are threatened against the Company. From time to time, the Company may be a party to certain legal proceedings in the ordinary
course of business, including proceedings relating to the enforcement of the



87







Company’s
rights under contracts with its portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty,
the Company does not expect that any such proceedings will have a material effect upon its financial condition or results of operations.



NOTE
10 – SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)



The
following are the quarterly results of operations for the years ended December 31, 2017, and 2016. The following information reflects
all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating
results for any quarter are not necessarily indicative of results for any future period.





|                                                                                        |  | Quarter
    Ended |          
|--------------------------------------------------------------------------------------- |  | ----------------- | ---------
|                                                                                        |  | December 31,      |          
|                                                                                        |  | 2017              |          
|Investment
    income                                                                   |  | $                 | 220,782  
|Operating
    expenses                                                                  |  |                   |          
|Total operating expenses                                                                |  |                   | 335,898  
|Expense reimbursement
    from sponsor                                                  |  |                   | -        
|Net
    operating expenses                                                              |  |                   | 335,898  
|Net
    investment income (loss)                                                        |  |                   | (115,116 
|Realized gain on investments                                                            |  |                   | 302      
|Net increase (decrease)
    in unrealized appreciation on investments                   |  |                   | (66,150  
|Net
    increase (decrease) in net assets resulting from operations                     |  | $                 | (180,964 
|Per
    share information-basic and diluted                                             |  |                   |          
|Net investment income
    (loss) - Basic and diluted                                    |  | $                 | (0.08    
|Net increase (decrease)
    in net assets resulting from operations - Basic and diluted |  | $                 | (0.13    
|Weighted average shares
    outstanding - Basic and diluted                             |  |                   | 1,375,869





|                                                                                        |  | Quarter
    Ended     |         
|--------------------------------------------------------------------------------------- |  | --------------------- | --------
|                                                                                        |  | December 31,
    2016 |         
|Investment
    income                                                                   |  | $                     | 147,877 
|Operating
    expenses                                                                  |  |                       |         
|Total operating expenses                                                                |  |                       | 144,510 
|Expense reimbursement
    from sponsor                                                  |  |                       | (104,560
|Net
    operating expenses                                                              |  |                       | 39,950  
|Net
    investment income                                                               |  |                       | 107,927 
|Realized gain (loss)
    on investments                                                 |  |                       | 20,898  
|Net increase (decrease)
    in unrealized appreciation on investments                   |  |                       | (334,128
|Net
    increase (decrease) in net assets resulting from operations                     |  | $                     | (205,303
|Per
    share information-basic and diluted                                             |  |                       |         
|Net investment income
    - Basic and diluted                                           |  | $                     | 0.12    
|Net increase (decrease)
    in net assets resulting from operations - Basic and diluted |  | $                     | (0.22   
|Weighted average shares
    outstanding - Basic and diluted                             |  |                       | 915,626 



The
sum of quarterly per share amounts does not necessarily equal per share amounts reported for the years ended December 31, 2017
and 2016. This is due to changes in the number of weighted-average shares outstanding and the effects of rounding for each period.





88







NOTE
11 – SUBSEQUENT EVENTS



Management
has evaluated all known subsequent events through the date the accompanying financial statements were available to be issued on
April 2, 2018, and notes the following:



For
the period beginning January 1, 2018 and ending April 2, 2018, the Company sold 68,506.32 shares of its common stock for total
gross proceeds of $923,815, issued amounts pursuant to its distribution reinvestment plan in the
amount of $82,534, and repurchased 6,388.01 shares for total cost of $77,359 pursuant to the Company’s Repurchase Program.





89







|Item
    9. | Changes in and
    Disagreements With Accountants on Accounting and Financial Disclosure
|----------- | ----------------------------------------------------------------------------------------



Not
applicable.



|Item
    9A. | Controls and
    Procedures
|------------ | ---------------------------



Evaluation
of Disclosure Controls and Procedures



We
maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports
filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s
rules and forms and that such information is accumulated and communicated to our management, including our chief executive officer
and chief financial officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating
the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and
operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply
its judgment in evaluating the cost-benefit relationship of possible controls and procedures.



As
required by Exchange Act Rule 13(a)-15(b), we carried out an evaluation under the supervision and with the participation of our
management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation
of our disclosure controls and procedures as of December 31, 2017 to determine that our disclosure controls and procedures were
(a) designed to ensure that the information we are required to disclose in our reports under the Exchange Act is recorded, processed
and reported in an accurate manner and on a timely basis and the information that we are required to disclose in our Exchange
Act reports is accumulated and communicated to management to permit timely decisions with respect to required disclosure and (b)
operating in an effective manner.



Management’s
Annual Report on Internal Control Over Financial Reporting



Our
management is responsible for establishing and maintaining adequate internal control over financial reporting. As defined in Exchange
Act Rules 13a-15(f) and 15d-15(f), internal control over financial reporting is a process designed by, or under the supervision
of, the Company’s principal executive and principal financial officers, or persons performing similar functions, and effected
by the company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.



Our
internal control over financial reporting includes those policies and procedures that:



1.
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the Company’s transactions
and the dispositions of assets of the Company;



2.
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance
with authorizations of our management and board of directors; and



3.
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s
assets that could have a material effect on the financial statements.



Because
of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance with
respect to financial statement preparation and presentation and may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.



In
connection with the preparation of our annual financial statements, management has conducted an assessment of the effectiveness
of our internal control over financial reporting based on the framework set forth



90







in
Internal Control—Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission
(“COSO”). Management’s assessment included an evaluation of the design of our internal control over financial
reporting and testing of the operational effectiveness of those controls.



Based
on this evaluation, we have concluded that, as of December 31, 2017, our internal control over financial reporting was effective
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with U.S. generally accepted accounting principles.



Changes
in Internal Control over Financial Reporting



For
the year ended December 31, 2017, there were no changes in our internal controls over financial reporting (as defined under Rule
13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal controls
over financial reporting.



|Item
    9B. | Other
        Information
        
        None.
|------------ | ------------------------------------------------



PART
III



|Item
    10. | Directors, Executive Officers and Corporate
    Governance
|------------ | ----------------------------------------------------------



The
information required by Item 10 is hereby incorporated by reference from the Company’s definitive Proxy Statement relating
to the Company’s 2018 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of the
Company’s fiscal year.



|Item
    11. | Executive Compensation
|------------ | ----------------------



The
information required by Item 11 is hereby incorporated by reference from the Company’s definitive Proxy Statement relating
to the Company’s 2018 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of the
Company’s fiscal year.



|Item
    12. | Security Ownership of Certain Beneficial
    Owners and Management and Related Shareholder Matters
|------------ | --------------------------------------------------------------------------------------------------



The
information required by Item 12 is hereby incorporated by reference from the Company’s definitive Proxy Statement relating
to the Company’s 2018 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of the
Company’s fiscal year.





|Item
    13. | Certain Relationships and Related Transactions and Director Independence
|------------ | ------------------------------------------------------------------------



The
information required by Item 13 is hereby incorporated by reference from the Company’s definitive Proxy Statement relating
to the Company’s 2018 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of the
Company’s fiscal year.





|Item
    14. | Principal Accountant Fees and Services
|------------ | --------------------------------------



The
information required by Item 14 is hereby incorporated by reference from the Company’s definitive Proxy Statement relating
to the Company’s 2018 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of the
Company’s fiscal year.



91







PART
IV





|Item
    15. | Exhibits and Financial Statement Schedules
|------------ | ------------------------------------------





|   |  |                                                                                                           |  |     
|-- |  | --------------------------------------------------------------------------------------------------------- |  | ----
|a. |  | The following financial statements are filed
    as part of this report in Part II, Item 8:               |  |     
|   |  |                                                                                                           |  | Page
|   |  | Report
    of Independent Registered Public Accounting Firm                                               |  | 64  
|   |  | Consolidated
    Statement of Financial Position as of December 31, 2017 and 2016                         |  | 65  
|   |  | Consolidated
    Statements of Operations for the years ended December 31, 2017, 2016 and 2015            |  | 66  
|   |  | Consolidated
    Statements of Changes in Net Assets for the years ended December 31, 2017, 2016 and 2015 |  | 67  
|   |  | Consolidated
    Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015            |  | 68  
|   |  | Consolidated
    Schedule of Investments for the years ended December 31, 2017, and 2016                  |  | 69  
|   |  | Notes
    to Consolidated Financial Statements                                                            |  | 72  



|b.   |  | The
    following exhibits are filed or incorporated as part of this report.                                                                                                                                                                                                             
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     | 
|3.1  |  | Fourth Articles
    of Amendment and Restatement of Triton Pacific Investment Corporation. (Incorporated by reference to the Company’s
    registration statement on Form N-2 (File No. 333-174873) filed on November 1, 2013.)                                                          
|     | 
|3.2  |  | Amended and Restated
    Bylaws of the Company. (Incorporated by reference to the Company’s registration statement on Form N-2 (File
    No. 333-174873) filed on March 15, 2013.)                                                                                                       
|     |  |                                                                                                                                                                                                                                                                                          
|3.3  |  | Articles Supplementary
    of the Company.  (Incorporated by reference to the Company’s Pre-Effective amendment no. 1 to registration
    statement on Form N-2 (File No. 333-206730) filed on March 3, 2016.)                                                                           
|     | 
|10.1 |  | Dealer Manager Agreement
    by and between Company and Triton Pacific Securities, LLC. (Incorporated by reference to the Company’s Post-Effective
    amendment no. 3 to registration statement on Form N-2 (File No. 333-206730) filed on April 3, 2017.)                              
|     | 
|10.2 |  | Form of Participating
    Dealer Agreement and Participating Dealer Agreement. (Incorporated by reference to the Company’s Post-Effective
    amendment no. 3 to registration statement on Form N-2 (File No. 333-206730) filed on April 3, 2017.)                                       
|     | 
|10.3 |  | License Agreement
    by and between Company and Triton Pacific Group, Inc. (Incorporated by reference to Exhibit 2(K) filed with Pre-Effective
    Amendment No. 1 to the Company’s registration statement on Form N-2 (File No. 333-174873) filed on June 14, 2011.)                   
|     | 
|10.4 |  | Administration Agreement
    by and between the Company and TFA Associates, LLC. (Incorporated by reference, Exhibit 2(K), filed with Pre-Effective
    Amendment No. 4 to the Company’s registration statement on Form N-2 (File No. 333-174873) filed on August 12, 2012.)             
|     | 
|10.5 |  | Investment Advisory
    Agreement by and between Company and Triton Pacific Adviser, LLC. (Incorporated by reference to Exhibit 2(g), filed
    with Post-Effective Amendment No. 6 to the Company’s registration statement on Form N-2 (File No. 333-174873) filed
    on July 8, 2013.)
|     | 
|10.6 |  | Investment Sub-Advisory
    Agreement dated July 24, 2014 between the Company and ZAIS Group, LLC (Incorporated by reference to Exhibit 10.1 to the
    Company’s Form 8-K filed with the SEC on July 30, 2014.)                                                                         
|     |  |                                                                                                                                                                                                                                                                                          
|10.7 |  | Amended and Restated
Expense Support and Conditional Reimbursement Agreement by and between the                                                                                                                                                                                          





92







|      |  | Company and Adviser
    (Incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended September 30, 2014, filed
    with the SEC on November 19, 2014.)                                                                                                                                                                                                                                                          
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
|10.8  |  | Indemnification
                                         Agreement dated November 17, 2014 between the Company and Adviser (Incorporated by
                                         reference to the Company’s Form 10-Q for the quarter ended September 30, 2014,
                                         filed with the SEC on November 19, 2014.)                                                                                         
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
|10.9  |  | Agreement
                                    dated December 15, 2014 between the Company and its Independent Directors ((Incorporated
                                    by reference to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on December
                                    17, 2014.)                                                                                                                                
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
|10.10 |  | Global
                                    Custody Agreement dated March 7, 2014 between the Company and The Bank of New York Mellon
                                    Trust Company ((Incorporated by reference to Exhibit 2(j) to the Company’s Post-Effective
                                    amendment no. 3 to registration statement on Form N-2 (File No. 333-206730) filed on
                                    April 3, 2017.)
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
|14.1  |  | Amended Code of
    Ethics of the Registrant (Incorporated by reference, Exhibit 2(R), filed with Pre-Effective Amendment No. 1 to the
    Company’s registration statement on Form N-2 (File No. 333-174873) filed on August 29, 2011.)                                                                                                                                                                                                       
|      | 
|31.1  |  | Certification of
    Chief Executive Officer of Triton Pacific Investment Incorporation., Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section
    302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)                                                                                                                                                                                                                              
|      | 
|31.2  |  | Certification of
    Chief Financial Officer of Triton Pacific Investment Corporation., Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section
    302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)                                                                                                                                                                                                                                
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
|32.1  |  | Certification pursuant
    to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Filed herewith.)                                                                                                                                                                                                                                                                                                 







93







SIGNATURES



Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized, on the 2nd day of April 2018.



| |                                                 |  |                                  
| | ----------------------------------------------- |  | ---------------------------------
| | TRITON PACIFIC INVESTMENT CORPORATION,
    INC.
| |                                                 | 
| | By:                                             |  | /s/
    Craig J. Faggen          
| |                                                 |  | CRAIG
    J. FAGGEN              
| |                                                 |  | Chief
    Executive Officer      
| |                                                 |  | (Principal
    Executive Officer)
| |                                                 | 
| | By:                                             |  | /s/
    Michael L. Carroll       
| |                                                 |  | MICHAEL
    L. CARROLL           
| |                                                 |  | Chief
    Financial Officer      
| |                                                 |  | (Principal
    Financial Officer)



Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf
of the Registrant and in the capacities and on the dates indicated.





|Signature                 |  | Title                                      |  | Date         
|------------------------- |  | ------------------------------------------ |  | -------------
|                          |  |                                            |  |              
|/s/
    Craig J. Faggen   |  | Director and Chairman of the Board and CEO |  | April 2, 2018
|Craig J. Faggen           |  |                                            |  |              
|                          |  |                                            |  |              
|/s/
    Ivan Faggen       |  | Director                                   |  | April 2, 2018
|Ivan Faggen               |  |                                            |  |              
|                          |  |                                            |  |              
|/s/
    Ronald Ruther     |  | Independent Director                       |  | April 2, 2018
|Ronald Ruther             |  |                                            |  |              
|                          |  |                                            |  |              
|/s/
    William Pruitt    |  | Independent Director                       |  | April 2, 2018
|William Pruitt            |  |                                            |  |              
|                          |  |                                            |  |              
|/s/
    Marshall Goldberg |  | Independent Director                       |  | April 2, 2018
|Marshall Goldberg         |  |                                            |  |              

94