# EDGAR Filing Document

**Accession Number:** 0002043759
**File Stem:** 0000950170-25-106662
**Filing Date:** 2025-8
**Character Count:** 178464
**Document Hash:** 8bb76410cb77ae140e047b75c44f0f57
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-106662.hdr.sgml**: 20250811

**ACCESSION NUMBER**: 0000950170-25-106662

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 59

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250811

**DATE AS OF CHANGE**: 20250811

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LAGO Evergreen Credit
- **CENTRAL INDEX KEY:** 0002043759

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56728
- **FILM NUMBER:** 251202990

**BUSINESS ADDRESS:**
- **STREET 1:** 10 S. WACKER DR.
- **STREET 2:** SUITE 3540
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60606
- **BUSINESS PHONE:** 773-417-5246

**MAIL ADDRESS:**
- **STREET 1:** 10 S. WACKER DR.
- **STREET 2:** SUITE 3540
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60606

?xml version='1.0' encoding='ASCII'? 10-Q

**U.S. SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM** 10-Q

**(Mark One)**

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

**For the quarterly period ended** **June 30,** 2025

**OR**

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

Commission file number: 000-56728

LAGO Evergreen Credit

*(Exact name of registrant as specified in charter)*

---

| | |
|:---|:---|
| Delaware | 33-1867642 |
| (State or other jurisdiction of <br>incorporation or registration) | (I.R.S. Employer <br>Identification No.) |
| 10 S. Wacker Drive, Suite 3540<br>Chicago, Illinois | <br>60606 |
| (Address of principal executive offices) | (Zip Code) |

---

773-417-5246

------

(Registrant's telephone number, including area code)

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

---

| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| None | N/A | N/A |

---

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

Shares of beneficial interest, par value $0.01 per share

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 every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

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

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company  | ☒ |

---

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

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

As of August 11, 2025, the registrant had 3,869,487 shares of common stock, $0.01 par value per share, outstanding.

------

**Table of Contents**

---

| | |
|:---|:---|
| [**<u>PART I. FINANCIAL INFORMATION</u>**](#part_i) | **1** |
| [**<u>Item 1. Financial Statements</u>**](#item_1) | **1** |
| [<u>Consolidated Statement of Assets and Liabilities as of June 30, 2025 (unaudited)</u>](#consolidated_statement_of_assets) | 1 |
| [<u>Consolidated Statements of Operations for the three months ended June 30, 2025 (unaudited) and for the period from March 3, 2025 ("Commencement of Operations") through June 30, 2025 (unaudited)</u>](#consolidated_statement_of_operations) | 2 |
| [<u>Consolidated Statements of Changes in Net Assets for the three months ended June 30, 2025 (unaudited) and for the period from March 3, 2025 ("Commencement of Operations") through June 30, 2025 (unaudited)</u>](#consolidated_statement_of_changes) | 3 |
| [<u>Consolidated Statement of Cash Flows for the period from March 3, 2025 ("Commencement of Operations") through June 30, 2025 (unaudited)</u>](#consolidated_statement_of_cash_flows) | 4 |
| [<u>Consolidated Schedule of Investments as of June 30, 2025 (unaudited)</u>](#consolidated_schedule_of_investments) | 5 |
| [<u>Notes to Consolidated Financial Statements (unaudited)</u>](#notes_to_consolidated_financial) | 9 |
| [**<u>Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</u>**](#item_2) | **25** |
| [**<u>Item 3. Quantitative and Qualitative Disclosures About Market Risk</u>**](#item_3) | **40** |
| [**<u>Item 4. Controls and Procedures</u>**](#item_4) | **40** |
| [**<u>PART II. OTHER INFORMATION</u>**](#part_ii) | **41** |
| [<u>Item 1. Legal Proceedings</u>](#item_1_legal_proceedings) | 41 |
| [<u>Item 1A. Risk Factors</u>](#item_1a_risk_factors) | 41 |
| [<u>Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales_of_equity) | 41 |
| [<u>Item 3. Defaults Upon Senior Securities.</u>](#item_3_defaults_upon_senior_securities) | 41 |
| [<u>Item 4. Mine Safety Disclosures.</u>](#item_4_mine_safety_disclosures) | 41 |
| [<u>Item 5. Other Information.</u>](#item_5_other_information) | 41 |
| [<u>Item 6. Exhibits.</u>](#item_6_exhibits) | 42 |
| [<u>SIGNATURES</u>](#signatures) | 43 |

---

------

**FORWARD-LOOKING STATEMENTS**

This report contains forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about LAGO Evergreen Credit (the "Company", "we", "us", "our"), current and prospective portfolio investments, industry, beliefs and the Company's assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Company's control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in political, economic or industry conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the interest rate environment or conditions affecting the financial and capital markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of LAGO Asset Management, LLC (the "Investment Adviser") to locate suitable investments for the Company and to monitor and administer the Company's investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of the Investment Adviser and its affiliates to attract and retain highly talented professionals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risk associated with possible disruptions in the Company's operations or the economy generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of cash flows, if any, from the operations of the companies in which the Company invests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of the companies in which the Company invests to achieve their objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the dependence of the Company's future success on the general economy and its effect on the industries in which the Company invests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the use of borrowed money to finance a portion of the Company's investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the adequacy, availability, and pricing of the Company's financing sources and working capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•actual or potential conflicts of interest with the Investment Adviser and its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•contractual arrangements and relationships with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•potential economic downturns, interest rate volatility, loss of key personnel, and the illiquid nature of investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the disruption of global shipping activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of changing regulations and implementation of tariffs on goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of geo-political conditions, including those arising out of the Russia-Ukraine war and the Israel-Hamas war, and the potential for volatility in energy prices and other commodities and their impact on the industries in which we invest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•other risks, uncertainties, and other factors identified under "Item 1A. Risk Factors" and elsewhere in this Form 10-Q.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. We have based the forward-looking statements included in this Quarterly Report on Form 10-Q on information available to us on the date of this Quarterly Report on Form 10-Q, and we assume no obligation to update any such forward-looking statements, unless we are required to do so by applicable law. However, you are advised to consult any additional disclosures that we may make directly to you or through reports that we may file in the future with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

------

**PART I. FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**LAGO Evergreen Credit**

## **Consolidated Stateme nt of Assets and Liabilities** 

---

| | |
|:---|:---|
|  | **June 30, 2025** |
|  | **(unaudited)** |
| **Assets** |  |
| Investments |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlled / non-affiliated investments (cost of $75,313,593 at June 30, 2025) | $76388664 |
| Cash and cash equivalents | 34528583 |
| Interest receivable | 859966 |
| Prepaid expenses and other assets | 106800 |
| **Total assets** | $111884013 |
| **Liabilities** |  |
| Base Management Fees payable | $247544 |
| Income Incentive fees payable | 295924 |
| Capital Gains Incentive fees payable | 215014 |
| Accrued Board of Trustees' fees | 38000 |
| Accrued audit and tax fees | 147999 |
| Accrued expenses and other liabilities | 207679 |
| Distribution payable | 1686890 |
| Line of credit, net of deferred financing costs | 23799285 |
| **Total liabilities** | $26638335 |
| Commitments and contingencies (Note 6) |  |
| **Net assets** |  |
| Common shares, par value $0.01 per share, unlimited shares authorized (3,373,781 shares issued and outstanding at June 30, 2025) | 33738 |
| Paid-in-capital in excess of par value | 84317279 |
| Total distributable earnings (loss) | 894661 |
| **Total net assets** | 85245678 |
| **Total liabilities and net assets** | $111884013 |
| **Net asset value per share** | $25.27 |

---

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

------

**LAGO Evergreen Credit**

## **Consolidate d Statements of Operations** 
**(unaudited)**

---

| | | |
|:---|:---|:---|
|  | **For the Three Months Ended June 30, 2025** | **For the period<br>March 3, 2025<br>("Commencement<br>of Operations")<br>through June 30, 2025** |
| **Investment income:** |  |  |
| From non-controlled / non-affiliated investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | $2619613 | $3428953 |
| Other interest income | 228407 | 266836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total investment income** | **2848020** | **3695789** |
| **Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 228934 | 313357 |
| &nbsp;&nbsp;&nbsp;&nbsp;Base Management Fees | 247544 | 305002 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income Incentive fees | 295924 | 370164 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital Gains Incentive fees | 212085 | 209823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 264547 | 403643 |
| &nbsp;&nbsp;&nbsp;&nbsp;Board of Trustees' fees | 39322 | 77322 |
| &nbsp;&nbsp;&nbsp;&nbsp;Administration fees | 65510 | 88839 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other general and administrative expenses | 29335 | 39851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | **1383201** | **1808001** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net investment income (loss)** | **1464819** | **1887788** |
| **Net realized and unrealized gain (loss) on investments:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized gain (loss) on non-controlled / non-affiliated investments | 1086380 | 1075071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net realized and unrealized gain (loss) on investments** | **1086380** | **1075071** |
| **Net increase (decrease) in net assets resulting from operations** | $2551199 | $2962859 |

---

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

------

**LAGO Evergreen Credit**

## **Consolidated Statements of Changes in Net Assets** 
**(unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Shares** | **Common Shares** |  |  |  |
| **For the period March 3, 2025 ("Commencement of Operations") through June 30, 2025** | **Shares** | **Par<br>amount** | **Paid in<br>capital in<br>excess of par** | **Distributable<br>earnings<br>(losses)** | **Total net<br>assets** |
| **Balance at March 3, 2025 ("Commencement of Operations")** | **1000** | $**10** | $**24990** | $**-** | $**25000** |
| Issuance of shares related to Formation Transaction<sup>1</sup> | 2722631 | 27226 | 68038541 | - | 68065767 |
| Net increase (decrease) in net assets resulting from operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) | - | - | - | 1887788 | 1887788 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized gain (loss) on investments | - | - | - | 1075071 | 1075071 |
| Distributions declared to shareholders | - | - | - | (2068198) | (2068198) |
| Issuance of common shares | 650150 | 6502 | 16253748 |  | 16260250 |
| Total increase for the period from March 3, 2025 ("Commencement of Operations") through June 30, 2025 | 3372781 | 33728 | 16253748 | 894661 | 17154911 |
| **Balance at June 30, 2025** | **3373781** | $**33738** | $**84317279** | $**894661** | $**85245678** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Shares** | **Common Shares** |  |  |  |
| **For the Three Months Ended <br>June 30, 2025** | **Shares** | **Par<br>amount** | **Paid in<br>capital in<br>excess of par** | **Distributable<br>earnings<br>(losses)** | **Total net<br>assets** |
| **Balance at March 31, 2025** | **2723631** | $**27236** | $**68063531** | $**30352** | $**68121119** |
| Net increase (decrease) in net assets resulting from operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) | - | - | - | 1464819 | 1464819 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized gain (loss) on investments | - | - | - | 1086380 | 1086380 |
| Distributions declared to shareholders | - | - | - | (1686890) | (1686890) |
| Issuance of common shares | 650150 | 6502 | 16253748 |  | 16260250 |
| Total increase for the Three Months Ended June 30, 2025 | 650150 | 6502 | 16253748 | 864309 | 17124559 |
| **Balance at June 30, 2025** | **3373781** | $**33738** | $**84317279** | $**894661** | $**85245678** |

---

<sup>1</sup> See Note 1 – Organization for further information related to the Formation Transaction.

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

------

**LAGO Evergreen Credit**

## **Consolidated Statemen t of Cash Flows** 
**(unaudited)**

---

| | |
|:---|:---|
|  | **For the period<br>March 3, 2025<br>("Commencement<br>of Operations")<br>through <br>June 30, 2025** |
| **Cash flows from operating activities:** |  |
| Net increase (decrease) in net assets resulting from operations | $2962859 |
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to<br> net cash provided by (used in) operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (gain) loss on non-controlled / non-affiliated investments | (1075071) |
| &nbsp;&nbsp;&nbsp;&nbsp;Paid-in-kind interest income | (10566) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred loan fees | (140573) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion of warrant discount | (538406) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 85009 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for purchases of investments in portfolio companies | (34800000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loan repayments on investments in portfolio companies | 1118750 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from deferred loan fees | 469500 |
| Changes in operating assets and liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash received from Formation Transaction<sup>1</sup> | 27586601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in interest receivable | (443047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses and other assets | (106800) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in Base Management Fees payable | 67589 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in Income Incentive Fees payable | 52668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in Capital Gains Incentive Fees payable | 209822 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accrued audit and tax fees | 73999 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accrued Board of Trustees' fees | 38000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accrued expenses and other liabilities | 192679 |
| **Net cash provided by (used in) operating activities** | (4256987) |
| **Cash flows from financing activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of deferred financing costs | (1285724) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross borrowings on line of credit | 38000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of line of credit | (13000000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common shares | 16260250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution paid | (1213956) |
| **Net cash provided by (used in) financing activities** | 38760570 |
| **Net change in cash and cash equivalents** | 34503583 |
| Cash and cash equivalents, beginning of period | 25000 |
| **Cash and cash equivalents, end of period** | $34528583 |
| **Supplemental Disclosure of Cash-Flow Information** |  |
| Distribution declared during the period | $2068198 |
| Cash paid for interest | 161128 |
| Issuance of common shares in connection with the Formation Transaction<sup>1</sup> | 68065767 |

---

<sup>1</sup> On March 3, 2025, in connection with the Formation Transaction (as defined in Note 1 – Organization), the Company acquired net assets of $68,065,767 in exchange for common shares of the Company. For further details, refer to Note 1 – Organization and Note 8 – Net assets.

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

------

**LAGO Evergreen Credit**

## **Consolidated Sche dule of Investments** 
**June 30, 2025**

**(unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investments (a)** | **Type of Investment (b)** | **Interest Rate (d)** | **Maturity Date** | **Principal Amount (e)** | **Cost** | **Fair Value (f)** | **% of Net Assets** |
| **Investments – non-controlled / non-affiliated** |  |  |  |  |  |  |  |
| **Debt Investments** |  |  |  |  |  |  |  |
| **Application Software** |  |  |  |  |  |  |  |
| SE Ranking | Second lien senior secured term loan | SOFR + 7.5% | 11/30/2028 | $6000000 | $5883581 | $5883581 |  |
| **Sub-total: Application Software** |  |  |  | **6000000** | **5883581** | **5883581** | **6.90%** |
| **Consumer Finance** |  |  |  |  |  |  |  |
| Atlas Card | First lien senior secured term loan | SOFR + 6.0% | 6/3/2028 | 2000000 | 1983982 | 1983982 |  |
| **Sub-total: Consumer Finance** |  |  |  | **2000000** | **1983982** | **1983982** | **2.33%** |
| **Data Processing** |  |  |  |  |  |  |  |
| Capacity (AI Software) | First lien senior secured term loan | PRIME + 6.5% (1.0% PIK) | 6/13/2029 | 8403967 | 6636860 | 6636860 |  |
| **Sub-total: Data Processing** |  |  |  | **8403967** | **6636860** | **6636860** | **7.79%** |
| **Education** |  |  |  |  |  |  |  |
| Galileo Learning, LLC | First lien senior secured term loan | SOFR + 8.0% | 11/25/2027 | 6000000 | 5862234 | 5862234 |  |
| **Sub-total: Education** |  |  |  | **6000000** | **5862234** | **5862234** | **6.88%** |
| **Food & Beverage** |  |  |  |  |  |  |  |
| Organixx | First lien senior secured term loan | SOFR + 7.0% | 1/31/2027 | 3000000 | 2976250 | 3039900 |  |
| **Sub-total: Food & Beverage** |  |  |  | **3000000** | **2976250** | **3039900** | **3.57%** |
| **Health & Wellness** |  |  |  |  |  |  |  |
| Happy Head, Inc. | First lien senior secured term loan | SOFR + 8.5% | 9/30/2026 | 4000000 | 3810287 | 3810287 |  |
| Youth Opportunity Investments, LLC | First lien senior secured term loan | SOFR + 7.75% | 9/18/2026 | 8421875 | 7261101 | 7626008 |  |
| **Sub-total: Health & Wellness** |  |  |  | **12421875** | **11071388** | **11436295** | **13.42%** |
| **Technology - Aerospace** |  |  |  |  |  |  |  |
| Fortem Technologies, Inc. | First lien senior secured term loan | SOFR + 9.0% | 10/22/2027 | 3600000 | 3542479 | 3542479 |  |
| **Sub-total: Technology – Aerospace** |  |  |  | **3600000** | **3542479** | **3542479** | **4.16%** |
| **Technology - Business** |  |  |  |  |  |  |  |
| Everywhere Communications, Inc. | First lien senior secured term loan | SOFR + 8.0% | 12/23/2027 | 3000000 | 2751696 | 2751696 |  |
| Roq.Ad, Inc. | First lien senior secured term loan | SOFR + 7.25% | 2/27/2029 | 5504672 | 5405227 | 5405227 |  |
| Tulip.IO, Inc. (j) | First lien senior secured term loan | PRIME + 4.0% (2.0% PIK) | 11/4/2028 | 1008361 | 1008361 | 1008361 |  |
| **Sub-total: Technology – Business** |  |  |  | **9513033** | **9165284** | **9165284** | **10.75%** |
| **Technology - Consumer** |  |  |  |  |  |  |  |
| Hearth Display, Inc. | First lien senior secured term loan | SOFR + 8.0% | 9/12/2027 | 6000000 | 4977019 | 4977019 |  |
| **Sub-total: Technology - Consumer** |  |  |  | **6000000** | **4977019** | **4977019** | **5.84%** |
| **Technology – Health & Wellness** |  |  |  |  |  |  |  |
| Predictive Fitness, Inc. | First lien senior secured term loan | SOFR + 8.5% | 2/25/2028 | 3000000 | 2669464 | 2669464 |  |
| **Sub-total: Technology – Health & Wellness** |  |  |  | **3000000** | **2669464** | **2669464** | **3.13%** |
| **Technology - Marketplace** |  |  |  |  |  |  |  |
| FanFixApp, LLC | First lien senior secured term loan | SOFR + 8.0% | 3/6/2028 | 13000000 | 11812668 | 11812668 |  |
| **Sub-total: Technology – Marketplace** |  |  |  | **13000000** | **11812668** | **11812668** | **13.86%** |
| **Technology - Property** |  |  |  |  |  |  |  |
| Domuso Inc. | Second lien senior secured term loan | SOFR + 7.0% | 6/15/2029 | 2400000 | 2219415 | 2219415 |  |
| **Sub-total: Technology – Property** |  |  |  | **2400000** | **2219415** | **2219415** | **2.60%** |

---

------

**LAGO Evergreen Credit**

**Consolidated Schedule of Investments**

**June 30, 2025**

**(unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investments (a)** | **Type of Investment (b)** | **Interest Rate (d)** | **Maturity Date** | **Principal Amount (e)** | **Cost** | **Fair Value (f)** | **% of Net Assets** |
| **Total: Debt Investments** |  |  |  | **75338875** | **68800624** | **69229181** | **81.21%** |

---

------

**LAGO Evergreen Credit**

**Consolidated Schedule of Investments**

**June 30, 2025**

**(unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investments (a)** | **Type of Investment (b)** | **Investment<br>Date (c)** | **Shares** | **Series** | **Strike Price** | **Expiration Date** | **Cost** | **Fair Value (f)** | **% of Net Assets** |
| **Investments – non-controlled / non-affiliated** |  |  |  |  |  |  |  |  |  |
| **Warrant Investments** |  |  |  |  |  |  |  |  |  |
| **Application Software** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SE Ranking | Warrants | 6/3/2025 | 32 | Common Stock | $1290.8900 | 6/3/2035 | $58144 | $58144 |  |
| **Sub-total: Application Software** |  |  |  |  |  |  | **58144** | **58144** | **0.07%** |
| **Consumer Finance** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Atlas Card | Warrants | 6/3/2025 | 9584 | Series B-2 Preferred Stock | $4.1824 | 6/3/2035 | 6429 | 6429 |  |
| **Sub-total: Consumer Finance** |  |  |  |  |  |  | **6429** | **6429** | **0.01%** |
| **Data Processing** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capacity (AI Software) | Warrants | 6/13/2025 | (i) | Series D Common Shares | $0.0100 | 6/13/2035 | 1620218 | 1620218 |  |
| **Sub-total: Data Processing** |  |  |  |  |  |  | **1620218** | **1620218** | **1.90%** |
| **Education** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Galileo Learning, LLC | Warrants | 3/3/2025 | 60 | Common units | $0.0001 | 11/25/2034 | 52008 | 44616 |  |
| **Sub-total: Education** |  |  |  |  |  |  | **52008** | **44616** | **0.05%** |
| **Health & Wellness** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Happy Head, Inc. | Warrants | 3/3/2025 | 71522 | Common stock | $0.001 | 9/30/2034 | 196874 | 290737 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Youth Opportunity Investments, LLC | Warrants | 3/3/2025 | (g) | Common units | $0.001 | (g) | 1543000 | 2121625 |  |
| **Sub-total: Health & Wellness** |  |  |  |  |  |  | **1739874** | **2412362** | **2.83%** |
| **Technology - Aerospace** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fortem Technologies, Inc. | Warrants | 3/3/2025 | 409527 | Common stock | $0.61 | 10/22/2034 | 24667 | 47096 |  |
| **Sub-total: Technology – Aerospace** |  |  |  |  |  |  | **24667** | **47096** | **0.06%** |
| **Technology - Business** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Everywhere Communications, Inc. | Warrants | 3/3/2025 | 31169 | Series A-1 Preferred shares | $0.0001 | 12/23/2034 | 240300 | 264781 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Roq.Ad, Inc. | Warrants | 3/3/2025 | 194987 | Series A-1 Preferred stock | $1.2914 | 2/27/2035 | 83115 | 83115 |  |
| **Sub-total: Technology – Business** |  |  |  |  |  |  | **323415** | **347896** | **0.41%** |
| **Technology - Consumer** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hearth Display, Inc. | Warrants | 3/3/2025 | (h) | Series Seed-1 Preferred Stock | $0.0001 | 9/12/2034 | 1051213 | 985721 |  |
| **Sub-total: Technology - Consumer** |  |  |  |  |  |  | **1051213** | **985721** | **1.16%** |
| **Technology – Health & Wellness** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Predictive Fitness, Inc. | Warrants | 3/3/2025 | 243515 | Series Seed-5 Preferred Stock | $0.0001 | 2/25/2035 | 313800 | 313800 |  |
| **Sub-total: Technology – Health & Wellness** |  |  |  |  |  |  | **313800** | **313800** | **0.37%** |
| **Technology - Marketplace** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;FanFixApp, LLC | Warrants | 3/7/2025 | 52802 | Ordinary Shares | $0.0001 | 3/6/2035 | 1164801 | 1164801 |  |
| **Sub-total: Technology – Marketplace** |  |  |  |  |  |  | **1164801** | **1164801** | **1.37%** |
| **Technology - Property** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Domuso Inc. | Warrants | 5/30/2025 | 239603 | Series B-2 Preferred Stock | $0.3100 | 5/30/2035 | 158400 | 158400 |  |
| **Sub-total: Technology – Property** |  |  |  |  |  |  | **158400** | **158400** | **0.19%** |

---

------

**LAGO Evergreen Credit**

**Consolidated Schedule of Investments**

**June 30, 2025**

**(unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investments (a)** | **Type of Investment (b)** | **Investment<br>Date (c)** | **Shares** | **Series** | **Strike Price** | **Expiration Date** | **Cost** | **Fair Value (f)** | **% of Net Assets** |
| **Total: Warrant Investments** |  |  |  |  |  |  | **6512969** | **7159483** | **8.40%** |
| **Total Investments** |  |  |  |  |  |  | $**75313593** | $**76388664** | **89.61%** |
|  |  |  |  | **Interest Rate** |  | **Units** | **Cost** | **Fair Value** | **% of Net Assets** |
| **Cash Equivalents** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;First American Treasury Obligations Fund |  |  |  | 4.24% |  | 7657468 | $7657468 | $7657468 | **8.98%** |
| **Total Cash Equivalents** |  |  |  |  |  |  | 7657468 | 7657468 | **8.98%** |
| **Total Investments and Cash Equivalents** |  |  |  |  |  |  | $**82971061** | $**84046132** | **98.59%** |

---

a.All investments are domiciled in the United States unless otherwise noted. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale and are deemed to be "restricted securities" under the Securities Act.

b.All debt investments are income producing. Warrant investments are associated with funded debt and are non-income producing.

c.Investment date represents the date of initial investment date, either purchases or funding, not adjusted for modifications or amendments, if any. For assets purchased from the Legacy Fund as part of the Formation Transaction (both terms as defined in Note 1 - Organization), the investment date is March 3, 2025, the date of the Formation Transaction.

d.The 1-month Secured Overnight Financing Rate (the "SOFR") 30-day average reference rate was 4.32% as of June 30, 2025. The 3-month SOFR 30-day average reference rate was 4.34% as of June 30, 2025. The Prime Rate was 7.50% as of June 30, 2025.

e.Principal is net of repayments.

f.These investments were valued using unobservable inputs and are considered Level 3 investments.

g.The Company has been issued warrants to purchase 1.011% of fully diluted shares. The expiration date is defined in the warrant agreement as any time prior to certain sale transactions, which generally includes any liquidation events.

h.The Company has been issued warrants to purchase 5.0% of fully diluted shares.

i.The Company has been issued warrants to purchase 0.36% of fully diluted shares as of December 31, 2025.

j.As of June 30, 2025, the Company has one foreign domiciled portfolio company, Tulip.IO, Inc., based in Canada. In total, foreign domiciled portfolio investments represent 1.2% of total net asset value based on fair value.

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

------

**LAGO Evergreen Credit**

## **Notes to Consolidat ed Financial Statements** 
**(unaudited)**

**Note 1. Organization** 

LAGO Evergreen Credit (the "Company") is an externally managed, non-diversified closed-end management investment company that has elected to be regulated as a business development company (a "BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). In addition, for tax purposes, the Company qualifies and intends to elect to be taxed as a regulated investment company ("RIC") under Subchapter M of the U.S. Internal Revenue Code of 1986, as amended (the "Code"). The Company was formed as a Delaware statutory trust on October 30, 2024, and filed its initial registration statement on Form 10 on March 3, 2025 as subsequently amended on April 17, 2025 and May 2, 2025.

The Company is managed by LAGO Asset Management, LLC (the "Investment Adviser"), a Delaware limited liability company and a registered investment adviser under the Investment Advisers Act of 1940, as amended. The Company entered into an investment advisory agreement (the "Investment Advisory Agreement") with the Investment Adviser in which the Investment Adviser, subject to the overall supervision of the Company's Board of Trustees (the "Board"), manages the day-to-day operations of, and provides investment advisory services to the Company. The Investment Adviser oversees the Company and is responsible for making investment decisions with respect to the Company's portfolio.

The Company's investment objective is to maximize the total return generated from its portfolio, which the Company expects to include current income from its debt investments as well as capital appreciation from equity and equity-related investments such as warrants. The Company's focus will be primarily on floating rate senior secured term loan investments and, to a lesser extent, other types of junior loans and equity-related securities, such as convertible notes, warrants, and preferred or common stock. The Company's secured loans are expected to be collateralized with security interests in the assets of the borrowers, which the Company expects will typically take the form of first-priority liens on some or all of the assets of the borrower. To the extent that another lender to the portfolio company retains the first-priority lien on some or all of the assets of the borrower, such as when another lender provides a revolving credit facility, the Company may structure its loan as a second-priority lien on any such encumbered assets and seek the opportunity to structure a first-lien on any unencumbered assets, such as intellectual property. The Company's position as a secured lender and, in particular in the case where the Company is the sole, first lien lender, enables it to exert influence over the borrower with respect to access to management, monitoring performance, and increasing the likelihood of positive outcomes in the event that the borrower underperforms or becomes distressed. In connection with the Company's lending activities, the Company expects to frequently receive "equity kickers" in the form of warrants and rights-to-invest equity in its borrowers, which have the potential to enhance returns above that typically generated from portfolios consisting solely of credit positions. The Company expects a majority of its warrants to be structured with a "cashless exercise" feature which does not require additional capital investment to benefit from any upside appreciation. The Company has adopted a policy to invest at least 80% of its assets in "credit," which the Company defines as debt investments made in exchange for regular interest payments, under Section 59 and Rule 35d-1 under the 1940 Act.

Subject to the approval of the Board, the Company is conducting a continuous and perpetual private offering (the "Private Offering") of its shares of common beneficial interests, par value of $0.01 per share (the "Shares"), in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Shares are being offered solely to investors that are "accredited investors" as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. At each closing, an investor purchases Shares pursuant to a subscription agreement entered into with the Company. See Note 8 - Net Assets for additional information on the Company's share activity.

The Company was initially capitalized on December 31, 2024 when the Investment Adviser purchased 1,000 Shares of the Company, at an offering price of $25.00 per share for an aggregate purchase price of $25,000. Other than the sale of Shares to the Investment Adviser, the Company had not commenced operations as of December 31, 2024.

On March 3, 2025, immediately prior to the Company's election to be regulated as a BDC under the 1940 Act, the Company completed a series of transactions pursuant to which LAGO Evergreen Credit, LLC (the "Legacy Fund") merged with and into the Company with the Company continuing as the surviving entity (the "Formation Transaction"). As a result of the Formation Transaction, the equity interests of the Legacy Fund held by LAGO Evergreen Credit-QP, LP and LAGO Evergreen Credit-AI, LP (the "Legacy Fund Members") were converted into Shares. Immediately thereafter, such Shares were distributed to the limited partners of the Legacy Fund Members as part of the dissolution and liquidation of the Legacy Fund Members.

The Company commenced operations and investment activity on March 3, 2025 ("Commencement of Operations") in connection with the Formation Transaction and its election to be regulated as a BDC under the 1940 Act.

------

**Note 2. Significant Accounting Policies**

The following is a summary of significant accounting policies consistently followed by the Company in the preparation of its consolidated financial statements.

**Basis of Presentation**

The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP"). The Company is an investment company and accordingly applies specific accounting and financial reporting requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Topic 946, *Financial Services-Investment Companies*, ("ASC Topic 946") and pursuant to Regulation S-X.

**Principles of Consolidation**

Under ASC Topic 946 the Company is precluded from consolidating any entity other than an investment company or an operating company which provides substantially all of its services to benefit the Company. In accordance therewith, the Company has consolidated the results of its wholly owned subsidiaries which provide services to the Company in its consolidated financial statements. However, the Company has not consolidated the results of its subsidiaries in which the Company holds its portfolio investments. All intercompany account balances and transactions have been eliminated in consolidation.

**Use of Estimates**

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and the accompanying notes thereto. Management believes that the estimates utilized in the preparation of these consolidated financial statements are reasonable and prudent. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management adjusts such estimates when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates, and differences could be material.

**Cash and cash equivalents**

Cash and cash equivalents consist of demand deposits and highly liquid investments, such as money market funds, with original maturities of three months or less. Cash and cash equivalents are carried at cost, which approximates fair value. The Company deposits its cash and cash equivalents with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. The Company sweeps excess cash into a money market treasury fund on a daily basis to reduce the risk that deposits at individual financial institutions exceed the Federal Deposit Insurance Company insurance limit. Cash equivalents in money market mutual funds are fair valued under the market approach through the use of quoted market prices in an active market, which is the net asset value ("NAV") of the funds, and are classified within Level 1 of the valuation hierarchy as further described below.

**Income Taxes**

The Company qualifies and intends to elect to be treated as a RIC under Subchapter M of the Code commencing with its taxable period ending on December 31, 2025, and thereafter intends to comply with the requirements to qualify and maintain its status as a RIC annually. So long as the Company maintains its status as a RIC, it generally will not have to pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that it distributes at least annually to its shareholders. Any tax liability related to income earned and distributed by the Company would represent obligations of the Company's shareholders and would not be reflected in the consolidated financial statements of the Company.

To qualify and be subject to tax as a RIC for U.S. federal income tax purposes, the Company will need to ensure that (among other things) it satisfies certain sources of income and asset diversification requirements and distributes to its shareholders annually an amount equal to at least 90% of its "investment company taxable income" for that year, which is generally its ordinary income plus the excess, if any, of its realized net short-term capital gains over its realized net long-term capital losses. The Company will be subject to a nondeductible excise tax for any undistributed income.

------

Under GAAP, the Company is subject to the provisions of ASC 740, "Income Taxes." The Company evaluates tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether it is "more-likely-than-not" (i.e., greater than 50%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current period. The Company follows the authoritative guidance on accounting for uncertainty in income taxes and concluded it has no material uncertain tax positions to be recognized at this time. If applicable, the Company will recognize interest and penalties related to unrecognized tax benefits as income tax expense in the Company's consolidated statement of operations. However, management's conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities, on-going analysis of and changes to tax laws, regulations and interpretations thereof.

The Organization for Economic Co-operation and Development ("OECD") introduced a 15% global minimum tax under the Pillar Two Global Anti-Base Erosion ("GloBe") model rules. Several OECD member countries have enacted tax legislation based on certain elements of these rules that became effective on January 1, 2024. Other jurisdictions have announced that they intend to implement these rules, but the rules remain subject to significant negotiation, potential change, and phase-in periods. The Company has concluded that it falls outside the scope of the Pillar Two rules but will continue to monitor potential future applicability and changes to these rules.

**Organization and Offering Costs** 

Organization costs include, among other things, the cost of incorporating the Company and the cost of legal services and other fees pertaining to the Company's organization, including the Company's registration statement on Form 10. Organization costs are expensed as incurred.

Offering costs consist of costs incurred in connection with the offering of Shares of the Company, including legal fees, registration fees, and other costs pertaining to the preparation of the Company's private placement memorandum and any related offering materials (and any amendments and related documents thereto) relating to the Private Offering. Offering costs are capitalized as a deferred charge and amortized to expense on a straight-line basis over 12 months.

See Note 3 - Agreements and Related Party Transactions for further information on the Company's Expense Reimbursement Agreement with the Investment Adviser.

**Valuation of Investments**

Section 2(a)(41) of the 1940 Act requires the Company to value its assets as follows: (i) the third party price for securities for which a quotation is readily available; and (ii) for all other securities and assets, fair value, as determined in good faith by the Board.

The Company values its investments, upon which its NAV is based, in accordance with FASB ASC 820, Fair Value Measurements ("ASC 820"), which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the applicable measurement date. ASC 820 also provides a framework for measuring fair value, establishes a fair value hierarchy based on the observability of inputs used to measure fair value, and prescribes disclosure requirements for fair value measurements.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated the Investment Adviser as the valuation designee (the "Valuation Designee") responsible for valuing all of the Company's investments, including making fair valuation determinations as needed. The Investment Adviser has established a valuation committee (the "Valuation Committee") to carry out the ongoing fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation of the Company's investments.

In calculating the value of total assets, the Valuation Designee values investments for which market quotations are readily available at such market quotations if they are deemed to represent fair value. Securities that are not publicly traded or whose market price is not readily available or whose market quotations are not deemed to represent fair value are valued at fair value as determined, in good faith, by the Valuation Designee. Market quotations may be deemed not to represent fair value in certain circumstances where the Valuation Designee reasonably believes that facts and circumstances applicable to an issuer, a seller or purchaser or the market for a particular security causes current market quotes not to reflect the fair value of the security. As the majority of the Company's portfolio is made up of Level 3 assets under ASC 820, it is expected that market quotations will generally not be readily available. The Valuation Designee has engaged a third-party valuation firm to assist in the determination of fair value on a quarterly basis. The Valuation Designee and the independent valuation firm consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such Level 3 categorized assets.

------

As part of the valuation process, the Valuation Designee takes into account relevant factors in determining the fair value of the Company's investments, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the estimated enterprise value of a portfolio company (i.e., the total fair value of the portfolio company's debt and equity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the portfolio company's ability to make payments based on its earnings and cash flow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the nature and realizable value of any collateral or expected cash proceeds upon exit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•recent transactions of the portfolio company or peers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the assessment of the portfolio company in adhering to its business plan, underwriting expectations, and financial projections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the markets in which the portfolio company does business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a comparison of the portfolio company's securities to any similar publicly traded securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•overall changes in the interest rate environment and the credit markets that may affect the price at which similar investments may be made in the future; and

With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, the Valuation Designee has approved a multi-step valuation process that will be performed on a quarterly basis, as described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)each portfolio company or investment is initially valued by the investment professionals of the Valuation Designee responsible for the portfolio investment or through the use of the independent valuation firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)preliminary valuation conclusions are then documented and discussed with the valuation committee of the Valuation Designee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)the Valuation Designee discusses valuations and determines in good faith the fair value of each investment in the portfolio based on input of its valuation committee and the applicable independent valuation firm.

ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. ASC 820 also provides guidance regarding a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. In accordance with ASC 820, these inputs are summarized in the three levels listed below:

Level 1 — Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2 — Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

Transfers between levels, if any, are recognized at the beginning of the period in which the transfer occurred. In addition to using the above inputs in investment valuations, the Valuation Designee applies the valuation policy approved by the Company's Board that is consistent with ASC 820.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company's investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein.

------

**Net Realized Gain or Loss and Net Change in Unrealized Gain or Loss**

Investment transactions are recorded on the trade date. The Company will measure net realized gains or losses as the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, including accrued interest, without regard to unrealized gains or losses previously recognized. Net change in unrealized gain or loss will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gain or loss, when gains or losses are realized.

**Revenue Recognition**

*Interest Income*

The Company records interest income on an accrual basis to the extent that it expects to collect such amounts. It does not accrue as a receivable interest on loans and debt securities for accounting purposes if it has reason to doubt its ability to collect such interest.

*Debt Investments on Non-Accrual Status*

When a debt security becomes 90 days or more past due, or if management otherwise does not expect that principal, interest, and other obligations due will be collected in full, the Company will generally place the debt security on non-accrual status and cease recognizing interest income on that debt security until all principal and interest due has been paid or the Company believes the borrower has demonstrated the ability to repay its current and future contractual obligations. Any uncollected interest is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, the Company may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection.

As of June 30, 2025, no loans to portfolio companies were on non-accrual status.

**Distributions**

Distributions to shareholders are recorded on the record date. The amount of taxable income to be paid out as a distribution is determined by the Board each quarter and will depend on the Company's earnings, financial condition, maintenance of our tax treatment as a RIC, compliance with applicable BDC regulations and such factors as the Board may deem relevant from time to time.

**Segment Reporting**

In accordance with ASC Topic 280 – "Segment Reporting (ASC 280)," the Company has determined that it has a single operating and reporting segment. As a result, the Company's segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets.

The Company operates through a single operating and reporting segment with an investment objective to generate capital appreciation through investing primarily in a portfolio consisting of common and preferred equity investments, including convertible notes in U.S.-based portfolio companies. The Company's chief operating decision maker (the "CODM") is comprised of the Company's Chief Executive Officer and Chief Financial Officer. The CODM makes operating decisions of the Company primarily based on the Company's net increase (decrease) in net assets resulting from operations. The evaluation and assessment of this metric is used in implementing investment policy decisions, strategic initiatives, managing the Company's portfolio, and assessing the performance of the portfolio. As the Company's operations are comprised of a single reporting segment, the segment assets are reflected on the accompanying consolidated statement of assets and liabilities and the significant segment expenses are listed on the accompanying consolidated statement of operations.

------

**Note 3. Agreements and Related Party Transactions**

**Investment Advisory Agreement**

The Company entered into the Investment Advisory Agreement with the Investment Adviser in which the Investment Adviser, subject to the overall supervision of the Company's Board, manages the day-to-day operations of, and provides investment advisory services to the Company. The Investment Advisory Agreement will be effective for an initial two-year term and thereafter will continue for successive annual periods provided that such continuance is specifically approved annually by a majority of the Board or by the holders of a majority of the Company's outstanding voting securities and, in each case, a majority of the independent trustees. The Investment Advisory Agreement may be terminated by either party without penalty upon 60 days' written notice to the other party.

Pursuant to the Investment Advisory Agreement with the Investment Adviser, the Company pays the Investment Adviser a fee for its services under the Investment Advisory Agreement consisting of two components – a base management fee ("Base Management Fee") and an incentive fee (the "Incentive Fee"). The cost of both the Base Management Fee and the Incentive Fee will ultimately be borne by the shareholders.

*<u>Base Management Fee:</u>*

The Company pays the Investment Adviser the Base Management Fee, quarterly in arrears, at an annual rate of 1.50% of the Company's average adjusted gross assets. The average adjusted gross asset balance is the average of the Company's total gross assets (including assets acquired with leverage but adjusted to exclude cash and cash equivalents) at the end of the two most recently completed calendar quarters.

The Company recorded the Base Management Fee expense of $247,544 for the three months ended June 30, 2025 and $305,002 for the period from the Commencement of Operations through June 30, 2025, for a total Base Management Fee payable of $247,544 as of June 30, 2025.

*<u>Incentive Fee:</u>*

Pursuant to the Investment Advisory Agreement, the Company also pays the Investment Adviser an Incentive Fee consisting of two parts: (i) an income incentive fee, determined and paid quarterly, based on pre-incentive fee net investment income of the Company (the "Income Incentive Fee") and (ii) a capital gains incentive fee, determined and paid in arrears, based on net capital gains as of the end of each calendar year or upon the termination of the Investment Advisory Agreement (the "Capital Gains Incentive Fee"), which are described in more detail below.

*Income Incentive Fee*

The Income Incentive Fee will be calculated and payable quarterly in arrears and equals 15% of the Company's pre-incentive fee net investment income for the immediately preceding calendar quarter, subject to a hurdle rate.

The Income Incentive Fee for each calendar quarter will be calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•No Income Incentive Fee will be payable in any calendar quarter in which the Company's Pre-Incentive Fee Net Investment Income Returns (as defined below) do not exceed a quarterly return to investors of 1.5% of the Company's net asset value for that immediately preceding calendar quarter (the "Hurdle Rate").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•100% of the dollar amount of the Company's Pre-Incentive Fee Net Investment Income Returns, if any, that exceed the Hurdle Rate, but are less than or equal to 1.76% of the Company's net asset value for that immediately preceding calendar quarter (the "Catch-Up Rate"), will be payable to the Investment Adviser. The Catch-Up Rate is intended to provide an incentive fee of 15% on all of the Company's Pre-Incentive Fee Net Investment Income Returns as if the Hurdle Rate did not apply when the Company's pre-incentive fee net investment income exceeds 1.5% of the Company's net asset value for that calendar quarter, measured as of the end of the immediately preceding calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•15% of the dollar amount of the Company's Pre-Incentive Fee Net Investment Income Returns, if any, that exceed the Catch-Up Rate, reflecting that once the Hurdle Rate is reached, 15% of all Pre-Incentive Fee Net Investment Income Returns thereafter are paid to the Investment Adviser.

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"Pre-Incentive Fee Net Investment Income Returns" means, as the context requires, either the dollar value of, or percentage rate of return on the value of the Company's net assets at the end of the immediately preceding quarter from, interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company's operating expenses accrued for the quarter (including the Base Management Fee, expenses payable under the Investment Advisory Agreement or Administration Agreement), and any interest expense or fees on any credit facilities or outstanding debt and distributions paid on any issued and outstanding preferred shares, but excluding the incentive fee.

Pre-Incentive Fee Net Investment Income Returns include, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind ("PIK") interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income Returns do not include any expense support payments or any reimbursement by the Company of expense support payments, or any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

The Company recorded an Income Incentive Fee expense of $295,924 for the three months ended June 30, 2025 and $370,164 for the period from the Commencement of Operations through June 30, 2025. The total Income Incentive Fee payable was $295,924 as of June 30, 2025.

*Capital Gains Incentive Fee*

The second component of the incentive fee, the Capital Gains Incentive Fee, is payable at the end of each calendar year in arrears and equals 20% of cumulative realized capital gains from the date of the Company's election to be regulated as a BDC to the end of each calendar year, less cumulative net realized capital losses and unrealized capital depreciation, less the aggregate amount of any previously paid Capital Gains Incentive Fees. The Company will accrue quarterly, but will not pay, a Capital Gains Incentive Fee with respect to net unrealized appreciation. The Capital Gains Incentive Fee amount, or the calculations pertaining thereto, as appropriate, will account for any period less than a full calendar year.

In determining the Capital Gains Incentive Fee payable to the Investment Adviser, the Company will calculate the cumulative aggregate realized capital gains and cumulative aggregate realized capital losses since the Company's inception, and the aggregate unrealized capital depreciation as of the date of the calculation, as applicable, with respect to each of the investments in the Company's portfolio. For this purpose, cumulative aggregate realized capital gains, if any, equals the sum of the differences between the net sales price of each investment, when sold, and the original cost of such investment since the Company's inception. Cumulative aggregate realized capital losses equals the sum of the amounts by which the net sales price of each investment, when sold, is less than the original cost of such investment since the Company's inception. For the purposes of this calculation, "original cost" of the investment shall include cash deployed into the investment, excluding any capitalized PIK. "Net sales price" shall include cash proceeds generated from the investment, excluding any income recorded that is subject to the Income Incentive Fee as described above. Aggregate unrealized capital depreciation equals the sum of the difference, if negative, between the valuation of each investment as of the applicable calculation date and the original cost of such investment. At the end of the applicable year, the amount of capital gains that serves as the basis for the Company's calculation of the Capital Gains Incentive Fee payable equals the cumulative aggregate realized capital gains less cumulative aggregate realized capital losses, less aggregate unrealized capital depreciation, with respect to the Company's portfolio of investments. In no event will the Capital Gains Incentive Fee payable pursuant to the Investment Advisory Agreement be in excess of the amount permitted by the Investment Advisers Act of 1940, as amended, including Section 205 thereof.

The Company recorded a Capital Gains Incentive Fee expense of $212,085 and $209,823 for the three months ended June 30, 2025 and for the period from the Commencement of Operations through June 30, 2025, respectively. The total Capital Gains Incentive Fee payable was $215,014 as of June 30, 2025, which includes Capital Gains Incentive Fees payable acquired as part of the Formation Transaction.

**Expense Support and Conditional Reimbursement Agreement**

The Company entered into an expense support and conditional reimbursement agreement with the Investment Adviser (the "Expense Support Agreement"). The Expense Support Agreement provides that, at such times as the Investment Adviser determines, the Investment Adviser may pay certain expenses of the Company, provided that no portion of the payment will be used to pay any interest expense of the Company (each, an "Expense Payment"). Such Expense Payment will be made in any combination of cash or other immediately available funds no later than 45 days after a written commitment from the Investment Adviser to pay such expense, and/or by an offset against amounts due from the Company to the Investment Adviser or its affiliates related to expenses that are reimbursable by the Company pursuant to the Investment Advisory Agreement. Any payments required

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to be made by the Company pursuant to the Expense Support Agreement is referred to as a "Reimbursement Payment." The Company has agreed to reimburse the Investment Adviser for such expense payments when the Company has reached certain milestones of capital raised from external subscribers. Specifically, once $100 million of capital is raised by external subscribers ("Milestone 1"), the Company will be required to reimburse the Investment Adviser in an amount equal to the lesser of $100,000 or the total amount outstanding of the Expense Payment. Once $125 million of capital is raised by external subscribers ("Milestone 2"), the Company shall be required to reimburse the Investment Adviser in an additional amount equal to the lesser of $100,000 or the total remaining outstanding amount of the Expense Payment. Once $150 million of capital is raised by external subscribers ("Milestone 3"), the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $150,000 or the total remaining outstanding amount of the Expense Payment. Once $175 million of capital is raised by external subscribers ("Milestone 4"), the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $150,000 or the total remaining outstanding amount of the Expense Payment. In no event will the total amount reimbursed by the Company exceed $500,000.

As of June 30, 2025, the Investment Adviser has incurred $344,874 of organization costs and $155,126 of offering costs prior to the Commencement of Operations that will be payable by the Company when the Company has reached the milestones of capital raised from external subscribers as described above. As the Company has not reached Milestone 1 by raising capital of $100 million from external subscribers as of June 30, 2025, reimbursement of organization and offering costs was deemed not probable and therefore, is not recorded as a liability. No organizational and offering costs were incurred by the Company during the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025.

**Administration Agreement**

The Company has also entered into an administration agreement (the "Administration Agreement") with BIP Capital, LLC (the "Administrator") in which the Administrator provides certain administrative and fund accounting services to the Company, including fund accounting and financial reporting services, loan servicing, investor services, regulatory compliance services, tax reporting, audit support, technology and data management services and management of the Company's third-party vendors. The Administrator may engage one or more third-party sub-administrators to perform, or assist the Administrator in the performance of, any of such services. For such services, the Investment Adviser has agreed to pay the Administrator a fee equal to fifteen percent (15%) of any Base Management Fees and/or incentive fees paid to the Investment Adviser by the Company. The cost of the fee paid to the Administrator will be borne entirely by the Investment Adviser and will not be borne by the Shareholders.

**License Agreement**

The Company has entered into the License Agreement with the Investment Adviser, pursuant to which it will be granted a non-exclusive, royalty-free license to use the name "LAGO" and the associated logo pursuant to a license agreement. Under this agreement, the Company has a right to use the LAGO name and logo for so long as LAGO Asset Management, LLC remains the Investment Adviser. Other than with respect to this limited license, the Company has no legal right to the "LAGO" name or logo.

**Co-Investment Activity**

The Company intends to co-invest from time to time, and intends to make co-investments with certain affiliates of the Investment Adviser, where doing so is consistent with the Company's investment strategy as well as applicable law and SEC staff interpretations.

On April 23, 2025, the Company and the Investment Adviser received an exemptive order from the SEC (the "Order") that permits it to co-invest with investment funds managed by the Investment Adviser and its affiliates where doing so is consistent with the Company's investment strategy as well as applicable law (including the terms and conditions of the exemptive order issued by the SEC). Under the terms of the relief permitting the Company to co-invest with other funds managed by the Investment Adviser and its affiliates, a "required majority" (as defined in Section 57(o) of the 1940 Act) of the trustees who are not interested persons as defined in Section 2(a)(19) of the 1940 Act, must make certain conclusions in connection with a co-investment transaction, including (1) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Company and its and do not involve overreaching of the Company or its shareholders on the part of any person concerned and (2) the transaction is consistent with the interests of its shareholders and is consistent with the Company's investment objectives and strategies.

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**Note 4. Investments**

In accordance with the provisions of the 1940 Act, the Company classifies investments by level of control. As defined in the 1940 Act, "Controlled Investments" are investments in those companies that the Company is deemed to "Control." "Affiliated Investments" are investments in those companies that are "Affiliated Persons" of the Company, as defined in the 1940 Act, other than Control Investments. "Non-Controlled / Non-Affiliated Investments" are those that are neither Controlled Investments nor Affiliated Investments. Generally, under the 1940 Act, the Company is deemed to control a company in which it has invested if the Company owns more than 25.0% of the voting securities (i.e., securities with the right to elect directors) and/or has the power to exercise control over the management or policies of such portfolio company. Generally, under the 1940 Act, "Affiliated Investments" that are not otherwise "Controlled Investments" are defined as investments in which the Company owns at least 5.0%, up to 25.0% (inclusive), of the voting securities and does not have the power to exercise control over the management or policies of such portfolio company. Generally, under the 1940 Act, "Non-Controlled / Non-Affiliated Investments" are defined as investments in which the Company owns less than 5.0% of the voting securities of such portfolio company. All of the Company's investments are deemed Non-Controlled / Non-Affiliated as of June 30, 2025.

The composition of the Company's investment portfolio at cost and fair value was as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Cost** | **Fair Value** | **% of Total<br>Investments<br>at Fair<br>Value** |
| First lien senior secured term loans | $60697628 | $61126185 | 80.0% |
| Second lien senior secured term loans | 8102996 | 8102996 | 10.6% |
| Warrants | 6512969 | 7159483 | 9.4% |
| **Total** | $**75313593** | $**76388664** | **100.0%** |

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Refer to Note 5 – Fair Value Measurements for additional information on the fair value of the Company's investments.

The industry composition of investments at fair value was as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Cost** | **Fair Value** | **% of Total<br>Investments<br>at Fair<br>Value** |
| Application Software | $5941725 | $5941725 | 7.8% |
| Consumer Finance | 1990411 | 1990411 | 2.6% |
| Data Processing | 8257078 | 8257078 | 10.8% |
| Education | 5914242 | 5906850 | 7.7% |
| Food & Beverage | 2976250 | 3039900 | 4.0% |
| Health & Wellness | 12811262 | 13848657 | 18.1% |
| Technology – Aerospace | 3567146 | 3589575 | 4.7% |
| Technology – Business | 9488699 | 9513180 | 12.5% |
| Technology – Consumer | 6028232 | 5962740 | 7.8% |
| Technology – Health & Wellness | 2983264 | 2983264 | 3.9% |
| Technology – Marketplace | 12977469 | 12977469 | 17.0% |
| Technology – Property | 2377815 | 2377815 | 3.1% |
| **Total** | $**75313593** | $**76388664** | **100.0%** |

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As of June 30, 2025 and for the three months then ended and for the period from the Commencement of Operations through June 30, 2025, the Company had the following portfolio companies that individually accounted for 10% or more of the Company's aggregate total assets or investment income:

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| | | | |
|:---|:---|:---|:---|
| **Portfolio Company** | **Percentage of<br>Total Investment<br>Income for<br>Three Months Ended<br>June 30, 2025** | **Percentage of<br>Total Investment<br>Income for<br>period from the<br>Commencement of<br>Operations through<br>June 30, 2025** | **Percentage of<br>Total Assets<br>as of June 30, 2025** |
| Youth Opportunity Investments, LLC | 19.5% | 20.2% | 8.7% |
| FanFixApp, LLC | 21.5% | 21.0% | 11.6% |

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There were no transactions related to investments in controlled / affiliated or non-controlled / affiliated companies for the three months ended June 30, 2025 and for the period from the Commencement of Operations through June 30, 2025.

**Note 5. Fair Value Measurements**

The Company's investments were categorized in the fair value hierarchy described in Note 2 – Significant Accounting Policies.

The Company's investments measured at fair value by investment type on a recurring basis as of June 30, 2025 were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;First lien senior secured term loans | $- | $- | $61126185 | $61126185 |
| &nbsp;&nbsp;Second lien senior secured term loans | - | - | 8102996 | 8102996 |
| &nbsp;&nbsp;Warrants | - | - | 7159483 | 7159483 |
| &nbsp;&nbsp;**Total investments before cash equivalents** | $**-** | $**-** | $**76388664** | $**76388664** |
| &nbsp;&nbsp;Money market treasury fund | 7657468 | - | - | 7657468 |
| &nbsp;&nbsp;**Total investments after cash equivalents** | $**7657468** | $**-** | $**76388664** | $**84046132** |

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The following tables provide a reconciliation of the beginning and ending balances for investments for which fair value was determined using Level 3 inputs:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** |
|  | **First lien senior secured term loans** | **Second lien senior secured term loans** | **Warrants** | **Total** |
| &nbsp;&nbsp;Total fair value of investments in portfolio companies at March 31, 2025 | $50344414 | $- | $3961525 | $54305939 |
| &nbsp;&nbsp;Purchases of investments in portfolio companies | 11076409 | 8183456 | 2540135 | 21800000 |
| &nbsp;&nbsp;Paid-in-kind interest income | 9050 | - | - | 9050 |
| &nbsp;&nbsp;Proceeds from loan repayments on investments in portfolio companies | (1009375) | - | - | (1009375) |
| &nbsp;&nbsp;Proceeds from deferred loan fees | (223000) | (84000) | - | (307000) |
| &nbsp;&nbsp;Amortization of deferred loan fees | 102854 | 1784 | - | 104638 |
| &nbsp;&nbsp;Accretion of warrant discount | 397276 | 1756 | - | 399032 |
| &nbsp;&nbsp;Net change in unrealized gain (loss) | 428557 | - | 657823 | 1086380 |
| &nbsp;&nbsp;**Total fair value of investments in portfolio companies at June 30, 2025** | $**61126185** | $**8102996** | $**7159483** | $**76388664** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the period from the Commencement of Operations<br>through June 30, 2025** | **For the period from the Commencement of Operations<br>through June 30, 2025** | **For the period from the Commencement of Operations<br>through June 30, 2025** | **For the period from the Commencement of Operations<br>through June 30, 2025** |
|  | **First lien senior secured term loans** | **Second lien senior secured term loans** | **Warrants** | **Total** |
| &nbsp;&nbsp;Total fair value of investments in portfolio companies at Commencement of Operations | $- | $- | $- | $- |
| &nbsp;&nbsp;Investments in portfolio companies acquired from Legacy Fund | 38604265 | - | 2808033 | 41412298 |
| &nbsp;&nbsp;Purchases of investments in portfolio companies | 22911608 | 8183456 | 3704936 | 34800000 |
| &nbsp;&nbsp;Paid-in-kind interest income | 10566 | - | - | 10566 |
| &nbsp;&nbsp;Proceeds from loan repayments on investments in portfolio companies | (1118750) | - | - | (1118750) |
| &nbsp;&nbsp;Proceeds from deferred loan fees | (385500) | (84000) | - | (469500) |
| &nbsp;&nbsp;Amortization of deferred loan fees | 138789 | 1784 | - | 140573 |
| &nbsp;&nbsp;Accretion of warrant discount | 536650 | 1756 | - | 538406 |
| &nbsp;&nbsp;Net change in unrealized gain (loss) | 428557 | - | 646514 | 1075071 |
| &nbsp;&nbsp;**Total fair value of investments in portfolio companies at June 30, 2025** | $**61126185** | $**8102996** | $**7159483** | $**76388664** |

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There were no transfers into or out of Level 3 of the fair value hierarchy during the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025. The net change in unrealized gain (loss) for the period relating to those Level 3 assets that were still held by the Company at the end of the period was $1,075,071.

The following table summarizes the significant unobservable inputs the Valuation Designee used to value the Company's investments categorized within Level 3 as of June 30, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investment<br>Type** | **Fair Value as of June 30, 2025** | **Valuation<br>Techniques/<br>Methodologies** | **Unobservable<br>Input** | **Range<br>(Weighted<br>Average)**<sup>1</sup> | **Impact to<br>Valuation<br>from an<br>Increase in<br>Input**<sup>2</sup> |
| &nbsp;&nbsp;First lien senior secured term loans | $60117824 | Discounted cash flow | Discount rate | 11.4% - 29.2% (19.3%) | Decrease |
|  | 1008361 | Recent transaction | Transaction price | N/A | N/A |
| &nbsp;&nbsp;Second lien senior secured term loans | 8102996 | Discounted cash flow | Discount rate | 13.8% - 17.5% (14.8%) | Decrease |
| &nbsp;&nbsp;Warrants | 3828441 | Black Scholes Option Pricing Model | Volatility | 45% - 75% (61.4%) | Increase |
|  |  | Black Scholes Option Pricing Model | Estimated time to exit (in years) | 2.5 - 4.0<br>(3.22) | Decrease |
|  |  | Black Scholes Option Pricing Model | Revenue Multiples | 1.05 – 36.8 <br>(6.66) | Increase |
|  | 1209417 | Market Approach | Revenue Multiples | 1.65 - 3.13 (3.08) | Increase |
|  | 2121625 | Market Approach | EBITDA Multiples | 7.25 - 7.25 (7.25) | Increase |
| &nbsp;&nbsp;**Total** | $**76388664** |  |  |  |  |

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<sup>1.</sup>The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment.

<sup>2.</sup>This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.

**Note 6. Commitments and Contingencies**

*Unfunded Commitments*

The Company's commitments and contingencies consist primarily of unfunded commitments to extend credit in the form of loans to the Company's portfolio companies. The Company considers the unfunded commitment in the determination of fair value of the funded portion of the investment, as presented within the Consolidated Schedule of Investments. As of June 30, 2025, the Company had the following commitments to fund delayed draw term loans and an uncommitted accordion.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Industry** | **Type of Investment** | **Total<br>Committed** | **Less: Funded Commitments** | **Total Unfunded Commitments**<sup>1</sup> | **Total Unfunded Commitments Available for Draw**<sup>1</sup> |
| &nbsp;&nbsp;Galileo Learning LLC | Education | Delayed draw term loan | $2000000 | $- | $2000000 | $- |
| &nbsp;&nbsp;Organixx | Food & Beverage | Delayed draw term loan | 1000000 | - | 1000000 | - |
| &nbsp;&nbsp;Happy Head, Inc. | Health & Wellness | Delayed draw term loan | 2666667 | - | 2666667 | 1333333 |
| &nbsp;&nbsp;Roq.Ad, Inc. | Technology – Business | Delayed draw term loan | 1000000 | 1000000 | - | - |
| &nbsp;&nbsp;Roq.Ad, Inc. | Technology – Business | Uncommitted accordion | 6000000 | - | 6000000 | - |
| &nbsp;&nbsp;Hearth Display, Inc. | Technology – Consumer | Delayed draw term loan | 16000000 | 2000000 | 14000000 | - |
| &nbsp;&nbsp;Predictive Fitness, Inc. | Technology – Health & Wellness | Delayed draw term loan | 3000000 | - | 3000000 | - |
| &nbsp;&nbsp;Atlas Card | Consumer Finance | Delayed draw term loan | 18000000 | - | 18000000 | 2000000 |
| &nbsp;&nbsp;SE Ranking | Application Software | Delayed draw term loan | 1800000 | - | 1800000 | - |
| &nbsp;&nbsp;Capacity (AI Software) | Data Processing | Delayed draw term loan | 3600000 | - | 3600000 | - |
|  |  |  | $**55066667** | $**3000000** | $**52066667** | $**3333333** |

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<sup>1.</sup>The unfunded delayed draw term loans may or may not be funded to the borrowing party in the future. These unfunded contractual commitments are generally at the Company's discretion and/or are dependent on the portfolio company meeting certain performance obligations before the debt commitment becomes available to be drawn. Furthermore, the Company's credit agreements contain customary lending provisions that allow the Company relief from funding obligations for previously made commitments in instances where the underlying portfolio company experiences materially adverse events that affect the financial condition or business outlook for the Company. As of June 30, 2025, $3.3 million was available to be drawn upon by two portfolio companies at their discretion.

Additionally, from time to time, the Investment Adviser may commit to an investment on behalf of the investment vehicles it manages, including the Company. Certain terms of these investments are not finalized at the time of the commitment and the Company's allocation may change prior to the date of funding.

The Company will fund its unfunded commitments, if any, from the same sources it uses to fund its investment commitments at the time they are made (which are typically through existing cash and cash equivalents and borrowings under its KeyBank Credit Facility) and maintains adequate liquidity to fund its unfunded commitments through these sources.

In the ordinary course of its business, the Company may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Company. Currently, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications as of June 30, 2025.

See Note 3 – Agreements and Related Party Transactions for further information on the Company's Expense Reimbursement Agreement with the Investment Adviser.

**Note 7. Borrowings**

The Company has entered into a Loan and Security Agreement with the KeyBank National Association (the "Key Bank Credit Agreement"), under which the Company established a $75,000,000 revolving line of credit to provide leverage to the Company. The line of credit has a maturity date of February 28, 2030. Borrowings under the KeyBank Credit Agreement generally bear interest at a rate equal to Term SOFR plus 3.25% to 4.00%, subject to the number of eligible loans in the collateral pool. Under the terms of the credit agreement, the Company is subject to several covenants. As of June 30, 2025, the Company was in compliance with these covenants. The line of credit provides for advances that range from 45% to 55%, subject to the number of eligible loans in the collateral pool, on eligible loans held by the Company, as defined under Key Bank Credit Agreement. The Legacy Fund incurred $1,275,142 of debt issuance costs to underwrite this credit agreement, which the Company assumed as part of the Formation Transaction. As of June 30, 2025, the Company had $25,000,000 of gross outstanding borrowings under the line

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of credit, incurring $25,344 of interest expense with a weighted average interest rate of 8.07% for the three months ended June 30, 2025, and interest expense of $39,864 with a weighted average interest rate of 8.07% for the period from the Commencement of Operations through June 30, 2025. The Company had average gross outstanding borrowings of $1,241,758 for the three months ended June 30, 2025, and $1,449,383 for the period from the Commencement of Operations through June 30, 2025. Additionally, the Company incurred $139,833 of unused borrowing fees at a rate of 0.75% for the three months ended June 30, 2025 and $188,484 for the period from the Commencement of Operations through June 30, 2025.

**Note 8. Net Assets**

The Company has the authority to issue an unlimited number of Shares. The Company was initially capitalized on December 31, 2024 when the Investment Adviser purchased 1,000 Shares of the Company, at an offering price of $25.00 per share for an aggregate purchase price of $25,000.

On March 3, 2025, the Company completed the Formation Transaction and the equity interests of the Legacy Fund held by the Legacy Fund Members were converted into Shares. The Company issued 2,722,631 Shares for total proceeds of $68,065,767 as payment for such Shares. Immediately thereafter, such Shares were distributed to the Legacy Fund Members.

The following table summarizes the assets and liabilities acquired from the Legacy Fund in the Formation Transaction:

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| | |
|:---|:---|
|  | **March 3, 2025** |
| **Assets** |  |
| Investments |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlled / non-affiliated investments, at fair value (cost of $41,412,298) | $41412298 |
| Cash and cash equivalents | 27586601 |
| Interest receivable | 416919 |
| **Total assets** | $69415818 |
| **Liabilities** |  |
| Base Management Fees payable | $179955 |
| Incentive fees payable | 248448 |
| Accrued audit and tax fees | 74000 |
| Accrued expenses and other liabilities | 15000 |
| Distribution payable | 832648 |
| **Total liabilities** | $1350051 |
| **Net assets acquired** | $**68065767** |

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The following tables summarize transactions in Shares for the period ended June 30, 2025 and from the Commencement of Operations through June 30, 2025:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
|  | **Shares** | **Amount** |
| **Shares** |  |  |
| Subscriptions | 650150 | $16260250 |
| **Net increase (decrease)** | 650150 | $16260250 |

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| | | |
|:---|:---|:---|
|  | **For the period from the<br>Commencement of Operations<br>through June 30, 2025** | **For the period from the<br>Commencement of Operations<br>through June 30, 2025** |
|  | **Shares** | **Amount** |
| **Shares** |  |  |
| Subscriptions | 3372781 | $84326017 |
| **Net increase (decrease)** | 3372781 | $84326017 |

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*Net Asset Value per Share and Offering Price*

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Subject to the approval of the Board, the Company is conducting the Private Offering, in reliance on exemptions from the registration requirements of the Securities Act. At each closing, an investor purchases Shares pursuant to a subscription agreement entered into with the Company.

Subscriptions will be accepted on a continuous basis and Shares will be issued at periodic closings at a per-share price generally equal to the Company's NAV per Share as determined by the Board (or its appropriate committee) 48 hours prior to closing. The Company intends to issue Shares on a quarterly basis, subject to consideration of the investment opportunities that arise.

The following table summarizes each NAV per Share at which subscription closings occurred during the life-to-date period for Shares of beneficial interest as of the dates listed below:

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| | |
|:---|:---|
|  | **NAV Per Share** |
| **As of** | **Shares** |
| December 31, 2024 | $25.00 |
| March 3, 2025 | $25.00 |
| March 31, 2025 | $25.01 |
| June 30, 2025 | $25.27 |

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*Distributions*

The Company's Board expects to declare quarterly distributions. The Company paid cash distributions to its shareholders of record as of March 31, 2025 of $381,308 for the three months ended June 30, 2025. The Company paid cash distributions of $1,213,956 for the period from the Commencement of Operations through June 30, 2025, which included the quarterly distribution of $381,308 and the acquired distribution payable of $832,648 in association with the Formation Transaction.

On June 27, 2025, the Board declared a distribution of $0.50 per share for Shareholders of record as of June 30, 2025, for a total amount of $1,686,890. The distribution was paid on July 16, 2025.

No other distributions were made to Shareholders during the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025.

*Share Repurchase Program*

The Company does not intend to list its Shares on a securities exchange and does not expect there to be a public market for its shares. As a result, investors' ability to sell Shares will be limited.

Two years after the date on which the Company commenced the Private Offering, and at the discretion of the Board, the Company intends to commence a share repurchase program in which it intends to repurchase annually up to 10% of outstanding Shares (by number of Shares). Under the share repurchase program, to the extent the Company offers to repurchase Shares during an annual period, the Company expects to repurchase Shares pursuant to tender offers as of the applicable quarter-end using a purchase price equal to the NAV per Share as of the last calendar day of the applicable quarter, except that Shares that have not been outstanding for at least one year will be repurchased at 98% of such NAV (an "Early Repurchase Deduction"). Any early Repurchase Deduction will be retained by the Company for the benefit of remaining shareholders.

The Board may amend or suspend the share repurchase program if, in its reasonable judgment, it deems such action to be in the Company's best interest and the best interest of its shareholders, such as when a repurchase offer would place an undue burden on liquidity, adversely affect operations or risk having an adverse impact on the Company that would outweigh the benefit of the repurchase offer. As a result, Share repurchases may not be available annually. Should the Board suspend the share repurchase program, the Board will consider whether the continued suspension of the program is in the best interests of the Company and shareholders on a quarterly basis. The Company intends to conduct such repurchase offers in accordance with the requirements of Rule 13e-4 promulgated under the Exchange Act and the 1940 Act.

The Company did not make any share repurchases for the period from the Commencement of Operations through June 30, 2025.

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**Note 9. Financial Highlights**

The financial highlights for the period from the Commencement of Operations through June 30, 2025 are as follows:

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| | |
|:---|:---|
|  | **For the<br>period from the<br>Commencement of<br>Operations through<br>June 30, 2025** |
|  | **Common Shares** |
| **Per Share Activity** |  |
| Net asset value, beginning of period | $25.00 |
| Net investment income (loss)<sup>1</sup> | 0.59 |
| Net realized and unrealized gain (loss)<sup>1</sup> | 0.32 |
| Net increase (decrease) in net assets resulting from operations | 0.91 |
| Distribution paid (declared) to shareholders<sup>2</sup> | (0.64) |
| Net asset value, end of period | $25.27 |
| Total return<sup>3</sup> | 3.64% |
| Number of Shares outstanding as of June 30, 2025 | 3373781 |
| **Ratios to Average Net Assets:** |  |
| Net assets, end of period | $85245678 |
| Ratio of net investment income (loss) to average net assets<sup>4</sup> | 9.08% |
| Ratio of total expenses to average net assets<sup>4</sup> | 5.06% |
| Ratio of total expenses, excluding incentive fees<sup>4</sup> | 4.33% |
| Portfolio turnover<sup>5</sup> | 0.00% |

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<sup>1.</sup>Calculated based on weighted average shares outstanding during the period.

<sup>2.</sup>Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company's taxable earnings fall below the total amount of the Company's distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company's shareholders. The tax character of distributions will be determined at the end of the fiscal year.

<sup>3.</sup>Total return is not annualized and represents the total return for the period from the Commencement of Operations through June 30, 2025. Total return displayed is net of all fees, including all operating expenses such as management fees, incentive fees, and general and administrative expenses. Total return is calculated as the change in NAV per Share during the period plus declared distributions per share during the period, divided by the beginning NAV per Share (which for the purposes of this calculation is equal to the net offering price in effect at that time).

<sup>4.</sup>The ratio reflects an annualized amount, except in the case of non-recurring expenses (i.e., incentive fees, business licenses and permits fees).

<sup>5.</sup>No investments were sold during the period.

**Note 10. Subsequent Events**

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the filing of this Quarterly Report on Form 10-Q. Except as noted below, there have been no subsequent events that occurred during such period that would require recognition or disclosure:

*Share Issuance*

As of July 1, 2025, the Company sold 495,706 Shares at a price per Share of $25.27 (with the final number of shares being determined on July 17, 2025) to accredited investors in a private placement of Shares for an aggregate offering price of $12,526,500.

*Distributions*

On July 16, 2025, the Company paid the distribution of $0.50 per share to shareholders of record as of June 30, 2025, for a total amount of $1,686,890.

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*Other Activity*

On July 2, 2025, the Company repaid its $25,000,000 of gross outstanding borrowings to KeyBank. The Company had $0 of gross outstanding borrowings to KeyBank as of the date of filing.

On July 21, 2025, the Company and the Investment Adviser received a new co-investment exemptive order from the SEC. The order permits certain joint transactions that would otherwise be prohibited under Section 57(a)(4) of the 1940 Act and Rule 17d-1 thereunder. Specifically, the exemptive relief allows one or more closed-end management companies (including the Company) to participate in co-investment opportunities alongside affiliated investment vehicles, subject to the conditions set forth in the order, including oversight (and in certain limited cases, approval) by the Board and compliance with established allocation procedures designed to ensure fair and equitable treatment of all participating entities.

*Investment Activity*

On July 1, 2025, the Company invested $1.2 million into a first lien senior secured term loan with Stress Free Auto Care. Stress Free Auto Care issued warrants equivalent to 0.1% of fully diluted shares to the Company with this loan, which are convertible into Common Stock of the company.

On July 11, 2025, the Company invested $2.4 million into a first lien senior secured term loan with Milk + Honey Holdings, LLC. Milk + Honey Holdings, LLC issued 5,817 warrants to the Company with this loan, which are convertible into Series A Preferred Units of the company.

On July 21, 2025, the Company funded a delayed draw term loan of $2.0 million related to its investment in Atlas Card. This amount was related to an unfunded commitment that the Company had to the portfolio company as of June 30, 2025. Atlas Card issued 9,584 warrants to the Company with this loan, which are convertible into Series B-2 preferred stock of the company.

On July 22, 2025, the Company funded a delayed draw term loan of $1.2 million related to its investment in Capacity (AI Software). This amount was related to an unfunded commitment that the Company had to the portfolio company as of June 30, 2025. Capacity (AI Software) issued warrants equivalent to 0.15% of fully diluted shares to the Company with this loan, which are convertible into Series D Common Shares of the company.

On July 25, 2025, the Company invested $2.8 million into a first lien senior secured term loan with Kudo, Inc. Kudo, Inc. issued warrants equivalent to 0.12% of fully diluted shares to the Company with this loan, which are convertible into Series A Preferred Stock of the company.

On July 25, 2025, the Company funded an uncommitted accordion of $6.0 million related to its investment in Roq.Ad, Inc. This amount was related to an unfunded commitment that the Company had to the portfolio company as of June 30, 2025. Roq.Ad, Inc. issued warrants equivalent to 0.6% of fully diluted shares to the Company with this loan, which are convertible into Series A-1 Preferred stock of the company.

On July 28, 2025, the Company invested $10.8 million into a split lien credit facility with Beach House Group Global, LLC ("Beach House"). Beach House issued 1,682 warrants to the Company with this facility, which are convertible into Class D Preferred Units of the company.

On July 29, 2025, the Company invested $7.0 million into a first lien senior secured term loan with Coravin, Inc. Coravin, Inc. issued 408,451 warrants to the Company with this loan, which are convertible into Series D-1 Preferred Stock of the company.

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

*The information contained in this section should be read in conjunction with "Item 1. Financial Statements." This discussion contains forward-looking statements, which relate to future events, our future performance or financial condition and involves numerous risks and uncertainties. Actual results could differ materially from those implied or expressed in any forward-looking statements.*

**Overview**

LAGO Evergreen Credit (the "Company," "we," "us," or "our"), a Delaware statutory trust formed on October 30, 2024, is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (the "BDC") under the Investment Company Act of 1940 (the "1940 Act"). The Company also qualifies and intends to elect to be treated, for U.S. federal income tax purposes, and intends to qualify annually thereafter, as a regulated investment company (the "RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). As a BDC and a RIC, the Company is required to comply with certain regulatory requirements. For example, as a BDC, at least 70% of the Company's assets must be assets of the type listed in Section 55(a) of the 1940 Act.

The Company is externally managed by LAGO Asset Management, LLC (the "Investment Adviser"). The Investment Adviser is a Delaware limited liability company and a registered investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act). The Company entered into an investment advisory agreement (the "Investment Advisory Agreement") with the Investment Adviser in which the Investment Adviser, subject to the overall supervision of the Company's Board, manages the day-to-day operations of, and provides investment advisory services to the Company.

The Company was formed to serve as a direct lender to primarily U.S.-based lower middle market companies that the Company believes have the potential to expand their respective enterprise value through organic growth, acquisitions, market expansion, new product innovation, and/or achieving operational efficiencies, among other potential growth stimulants. The Company defines "lower middle market" as the segment of the economy comprised of those companies with annual revenues of between $10 million and $250 million. The Company considers a company to be U.S.-based if it is organized under the laws of, and has its principal place of business in, the United States. The Company's borrowers typically use capital to support such growth initiatives including, but not limited to, working capital needs, product or market expansion initiatives, acquisitions, refinancings and recapitalizations. The Company's aim is to invest primarily in floating rate senior secured term loans used to finance the continued growth and expansion of predominantly U.S.-based companies that are likely to be sponsored by venture capital, private equity or family office firms.

We intend to achieve our investment objectives by investing at least 70% of the Company's net assets (plus the amount of borrowings for investment purposes) in portfolio companies that qualify as eligible portfolio companies under the 1940 Act, with our core focus on investments in U.S.-based lower middle market companies that are engaged in disrupting the status quo in their native industries or creating de novo markets through the offering of innovative products, services or technologies, or by creating technology-enabled business models aimed at enhancing efficiency, customer experience, and/or speed to market. Furthermore, under normal circumstances, we expect to invest at least 80% of our net assets in "credit", which we define as debt investments made in exchange for regular interest payments. The Company serves as a direct lender of predominantly senior secured loans to innovative companies typically generating annual revenue between $10 million and $250 million, which the Company considers the lower middle market.

The Company was initially capitalized on December 31, 2024 when the Investment Adviser purchased 1,000 common shares of beneficial interests, par value of $0.01 per share (the "Shares"), of the Company, for an aggregate purchase price of $25,000. On March 3, 2025, prior to electing to be regulated as a BDC, the Company completed a series of transactions pursuant to which LAGO Evergreen Credit, LLC (the "Legacy Fund") merged with and into the Company with the Company continuing as the surviving entity (the "Formation Transaction"). As a result of the Formation Transaction, the equity interests of the Legacy Fund held by LAGO Evergreen Credit-QP, LP and LAGO Evergreen Credit-AI, LP (the "Legacy Fund Members") were converted into Shares. Immediately thereafter, such Shares were distributed to the limited partners of the Legacy Fund Members as part of the dissolution and liquidation of the Legacy Fund Members. The Company issued 2,722,631 shares at a price of $25.00 per share to the Legacy Fund for total merger consideration of $68,065,767 as part of this Formation Transaction.

The Company is currently conducting a continuous private offering (the "Private Offering"). Subscriptions will be effective only upon our acceptance, and we reserve the right to reject any subscription in whole or in part. All purchases will be made at a purchase price equal to the then-current net asset value (the "NAV") per Share, as determined by the Board or its appropriate committee 48 hours prior to closing.

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**Key Components of Our Results of Operations**

***Investments***

We invest primarily in floating rate senior secured term loans used to finance the continued growth and expansion of predominantly U.S.-based companies that are likely to be sponsored by venture capital, private equity or family office firms.

The Company's level of investment activity can and is expected to vary substantially from period to period depending on many factors, including the amount of capital available to target portfolio companies, the general economic environment, and the competitive environment for the type of investments we make.

***Revenues***

The Company generates revenue primarily in the form of current income from its debt investments as well as capital appreciation from equity and equity-related securities, such as warrants.

***Expenses***

**Operating Expenses** 

The Investment Adviser shall bear its own costs incurred in providing investment advisory services to the Company, including all personnel expenses. The Company will be responsible for all costs and expenses relating to the Company's activities, investments and ongoing business, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•all costs and expenses attributable to acquiring or originating, holding, and disposing of investments (including, without limitation, the fees and expenses of outside counsel, accountants, consultants, experts and other third party service providers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the actual costs incurred by the Investment Adviser on behalf of the Company for office space rental, office equipment, utilities and other non-compensation related overhead allocable to performance of investment advisory services, including the costs and expenses of monitoring performance of the Company's investments, serving as directors and officers of portfolio companies, enforcing the Company's rights in respect of its investments, valuation, pricing and monitoring services, research expenses (including market data, research analytics and news feeds), rating expenses, origination fees, loan servicing, loan administration, due diligence expenses, investment banking and finders' fees, appraisal fees, clearing and settlement charges, brokerage fees, custodial fees, stamp and transfer taxes, hedging costs, travel expenses, broken deal expenses, and expenses associated with developing, licensing, implementing, maintaining or upgrading web portal, website, extranet tools, computer software (including accounting, investor tracking, investor reporting, ledger systems, financial management and cybersecurity) or other administrative or reporting tools (including subscription-based services) for the benefit of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•legal, accounting, auditing, banking, consulting, and other fees and expenses, including reimbursement to the Investment Adviser for the cost of specific services provided by the Investment Adviser or its affiliates, which would otherwise be provided by third party experts such as tax and legal services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•all reasonable out-of-pocket fees and expenses incurred by the Company, the Investment Adviser, or their respective affiliates, partners, agents, officers, and employees relating to the investigation of investment, syndication, and investment repayment opportunities for the Company, whether or not consummated, and the fees and expenses of due diligence associated therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the fees payable to the Investment Adviser, or any of their respective affiliates for services provided, including the base management fee and incentive fee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fees and expenses related to the Company's borrowings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any taxes, fees, and other governmental charges levied against the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•all other expenses incurred by the Investment Adviser or any of its affiliates in connection with administering the Company's business, including expenses incurred by the Investment Adviser, or any of its affiliates in performing administrative services for the Company, the allocable portion of the compensation and overhead of administrative personnel of the Investment Adviser or any of its affiliates or paid by the Investment Adviser or any of its affiliates, and the cost of any third-party service providers engaged to assist the Investment Adviser or any of its affiliates with the provision of administrative services for the Company or on the Company's behalf.

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**Expense Support and Conditional Reimbursement Agreement**

The Company has entered into an expense support and conditional reimbursement agreement (the "Expense Support Agreement") with the Investment Adviser. The Expense Support Agreement provides that, at such times as the Investment Adviser determines, the Investment Adviser may pay certain expenses of the Company, provided that no portion of the payment will be used to pay any interest expense of the Company (each, an "Expense Payment"). Such Expense Payment will be made in any combination of cash or other immediately available funds no later than forty-five days after a written commitment from the Investment Adviser to pay such expense, and/or by an offset against amounts due from the Company to the Investment Adviser or its affiliates related to expenses that are reimbursable by the Company pursuant to the Investment Advisory Agreement. Any payments required to be made by the Company pursuant to the Expense Support Agreement is referred to as a "Reimbursement Payment."

The reimbursement of any Expense Payments by the Company shall be based on capital raised, and will be payable at four separate milestones, subject to certain conditions. Once $100 million of capital is raised by external subscribers, the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $100,000 or the total remaining outstanding amount of the Expense Payment. Once $125 million of capital is raised by external subscribers, the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $100,000 or the total remaining outstanding amount of the Expense Payment. Once $150 million of capital is raised by external subscribers, the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $150,000 or the total remaining outstanding amount of the Expense Payment. Once $175 million of capital is raised by external subscribers, the Company shall be required to reimburse the Investment Adviser in an amount equal to the lesser of $150,000 or the total remaining outstanding amount of the Expense Payment. Notwithstanding the foregoing, in no event shall the aggregate amount to be reimbursed to the Investment Adviser exceed $500,000. Any Expense Payment in excess of $500,000 will be borne by the Investment Adviser. The Investment Adviser may waive its right, in its sole discretion, to receive the Reimbursement Payment in any calendar month in which such Reimbursement Payment obligation is accrued.

As of June 30, 2025, the Investment Adviser has incurred reimbursable organizational expenses and offering costs of $344,874 and $155,126, respectively, that will be payable by the Company when the Company has reached the milestones of capital raised from external subscribers as described above. As the Company has not reached Milestone 1 by raising capital of $100 million from external subscribers as of June 30, 2025, reimbursement of organization and offering costs was deemed not probable and therefore, is not recorded as a liability. These costs were incurred by the Investment Adviser prior to the commencement of operations on March 3, 2025 ("Commencement of Operations") and as such, are not presented on the consolidated statement of operations as an expense and corresponding waiver of expense for the period from the Commencement of Operations through June 30, 2025.

**Portfolio and Investment Activity**

As of June 30, 2025, the fair value of our investments was approximately $76,388,664. For the three months ended June 30, 2025 and for the period from the Commencement of Operations through June 30, 2025, the Company acquired $21.8 million and $54.8 million, respectively, aggregate principal amount of investments as further described below.

On March 3, 2025, the Company completed the Formation Transaction, acquiring the investment portfolio of the Legacy Fund, at fair value of $41.4 million with an aggregate principal amount of $41.5 million.

The composition of the acquired investment portfolio at cost and fair value was as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **March 3, 2025** | **March 3, 2025** | **March 3, 2025** |
|  | **Cost** | **Fair Value** | **% of Total<br>Investments<br>at Fair Value** |
| First lien senior secured term loans | $38604265 | $38604265 | 93.2% |
| Warrants | 2808033 | 2808033 | 6.8% |
| **Total** | $**41412298** | $**41412298** | **100.0%** |

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The industry composition of the acquired investment portfolio at cost and fair value was as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **March 3, 2025** | **March 3, 2025** | **March 3, 2025** |
|  | **Cost** | **Fair Value** | **% of Total<br>Investments<br>at Fair Value** |
| Education | $5894685 | $5894685 | 14.2% |
| Food & Beverage | 2971281 | 2971281 | 7.2% |
| Health & Wellness | 12652726 | 12652726 | 30.5% |
| Technology – Aerospace | 4458657 | 4458657 | 10.8% |
| Technology – Business | 8485437 | 8485437 | 20.5% |
| Technology – Consumer | 4009478 | 4009478 | 9.7% |
| Technology – Health & Wellness | 2940034 | 2940034 | 7.1% |
| **Total** | $**41412298** | $**41412298** | **100.0%** |

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On March 7, 2025, the Company invested $13.0 million into a first lien senior secured term loan with FanFixApp, LLC. FanFixApp, LLC issued 52,802 warrants to the Company with this loan, which are convertible into ordinary shares of the company.

On May 30, 2025, the Company invested $2.4 million into a second lien senior secured term loan with Domuso Inc. Domuso Inc. issued 239,603 warrants to the Company with this loan, which are convertible into Series B-2 Preferred Stock of the company.

On June 3, 2025, the Company invested $2.0 million into a first lien senior secured term loan with Atlas Card. Atlas Card issued 9,584 warrants to the Company with this loan, which are convertible into Series B-2 Preferred Stock of the company.

On June 3, 2025, the Company invested $6.0 million into a second lien senior secured term loan with SE Ranking. SE Ranking issued 32 warrants to the Company with this loan, which are convertible into Common Stock of the company.

On June 11, 2025, the Company refinanced its investment in Roq.Ad, Inc. and funded a delayed draw term loan of $1.0 million related to its investment in Roq.Ad, Inc. The warrants associated with the original term loan were terminated, and warrants of 194,987 were issued to the Company with this loan, which are convertible into Series A-1 Preferred stock of the company.

On June 12, 2025, the Company funded a delayed draw term loan of $2.0 million related to its investment in Hearth Display, Inc. Hearth Display, Inc. issued warrants equivalent to 3.5% of fully diluted shares to the Company with this loan, which are convertible into Series Seed-1 Preferred Stock of the company.

On June 13, 2025, the Company invested $8.4 million into a first lien senior secured term loan with Capacity (AI Software). Capacity (AI Software) issued warrants equivalent to 0.36% of fully diluted shares as of December 31, 2025 were issued to the Company with this loan, which are convertible into Series D Common Shares of the company.

Our investment activity is presented below (information presented herein is at amortized cost unless otherwise indicated) for the period ended June 30, 2025:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **For the period<br>from the<br>Commencement<br>of Operations<br>through<br>June 30, 2025** |
| **Investments:** |  |  |
| Total investments, beginning of period | $54305939 | $- |
| Investments acquired from the Legacy Fund | - | 41412298 |
| Payments for purchases of investments in portfolio companies | 21800000 | 34800000 |
| Paid-in-kind interest income | 9050 | 10566 |
| Proceeds from loan repayments on investments in portfolio companies | (1009375) | (1118750) |
| Proceeds from deferred loan fees | (307000) | (469500) |
| Amortization of deferred loan fees | 104638 | 140573 |
| Accretion of warrant discount | 399032 | 538406 |
| Net change in unrealized (gain) loss on non-controlled / non-affiliated investments | 1086380 | 1075071 |
| **Total Investments, End of Period** | $**76388664** | $**76388664** |
| Number of portfolio companies | 15 | 15 |

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The composition of the investment portfolio at cost and fair value consisted of the following as of June 30, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Cost** | **Fair Value** | **% of Total<br>Investments<br>at Fair Value** |
| First lien senior secured term loans | $60697628 | $61126185 | 80.0% |
| Second lien senior secured term loans | 8102996 | 8102996 | 10.6% |
| Warrants | 6512969 | 7159483 | 9.4% |
| **Total** | $**75313593** | $**76388664** | **100.0%** |

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The industry composition of investments at cost and fair value was as follows as of June 30, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Cost** | **Fair Value** | **% of Total<br>Investments<br>at Fair<br>Value** |
| Application Software | $5941725 | $5941725 | 7.8% |
| Consumer Finance | 1990411 | 1990411 | 2.6% |
| Data Processing | 8257078 | 8257078 | 10.8% |
| Education | 5914242 | 5906850 | 7.7% |
| Food & Beverage | 2976250 | 3039900 | 4.0% |
| Health & Wellness | 12811262 | 13848657 | 18.1% |
| Technology – Aerospace | 3567146 | 3589575 | 4.7% |
| Technology – Business | 9488699 | 9513180 | 12.5% |
| Technology – Consumer | 6028232 | 5962740 | 7.8% |
| Technology – Health & Wellness | 2983264 | 2983264 | 3.9% |
| Technology – Marketplace | 12977469 | 12977469 | 17.0% |
| Technology – Property | 2377815 | 2377815 | 3.1% |
| **Total** | $**75313593** | $**76388664** | **100.0%** |

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The geographic composition of investments at cost and fair value was as follows as of June 30, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Cost** | **Fair Value** | **% of Total Investments<br>at Fair Value** |
| United States | $74305232 | $75380303 | 98.7% |
| International | 1008361 | 1008361 | 1.3% |
| **Total** | $**75313593** | $**76388664** | **100.0%** |

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**Portfolio Asset Quality**

*Portfolio management and reporting.* 

The Investment Adviser monitors our portfolio companies on an ongoing basis, including financial trends of each portfolio company to determine if they are meeting their respective business plans and to assess the appropriate course of action with respect to each portfolio company. In connection with evaluating and monitoring the performance and fair value of our investments, the Investment Adviser may take one or more of the following actions, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•assessment of success of the portfolio company in adhering to its business plan, underwriting expectations, and financial projections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•periodic and regular contact with portfolio company management to discuss financial position, requirements and accomplishments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•participation at Board meetings through a designated seat or as an observer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•comparisons to other companies in the portfolio company's industry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•review of monthly or quarterly financial statements and financial metrics for portfolio companies.

The Company will maintain a "hands on" approach to communication with the portfolio companies. At least quarterly, and often monthly, the Company will receive financial reports from the portfolio companies and track performance relative to prior periods. Using this data, the Company will use a credit rating system to analyze the quality of its debt investments on a quarterly basis. Each portfolio company will be rated on a scale between 1 and 5. A rating of 4 represents the rating for a standard level of risk; this rating will be assigned to all portfolio companies at inception of the initial investment. A rating of 5 represents an improved and better credit quality than existed at the time of its original underwriting. A rating of 3 indicates that the borrower is exhibiting some underperformance in one or more key operating metrics but the overall credit quality and risk of loss of principal is deemed low. The Company expects most portfolio companies to be rated a 4 or a 3 while active borrowers. A rating of 2 or 1 represents a deteriorating credit quality and an increased risk of loss of principal.

The Company will closely monitor all portfolio companies, but especially those rated a 1 or 2, for adverse developments. In addition, the Company will maintain regular contact with the management, board of directors, and/or major equity holders of these portfolio companies in order to discuss strategic initiatives to correct the deterioration of the portfolio company.

LAGO Proprietary Credit Rating System

5. The borrower is outperforming revenue milestones, operating milestones and other operating metrics, or has achieved a size in considerable excess relative to that at position inception, or has raised, or is expected to raise, additional capital in excess of the Company's underwriting assumptions. Generally, when a borrower is in this category, its enterprise value likely greatly exceeds its loan balance (LTV <= 20%), it may have cash flow positive operations or sufficient cash resources to cover the remaining balance of the loan, there is strong potential for warrant gains, and there is a high likelihood that the borrower will receive favorable future financing to support operations. There is no principal loss expected.

4. The borrower is a new portfolio company, and/or it is achieving revenue milestones, operating milestones and other operating metrics generally as expected, or has raised, or is expected to raise, additional capital as expected, if deemed necessary. Generally, when a borrower is in this category, its enterprise value likely comfortably exceeds its loan balance (LTV <= 40%), it has sufficient cash resources over the near to medium term or has the ability to raise additional capital as needed, and there continues to be potential for warrant gains. There is no principal loss expected.

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3. The borrower has repeated material underperformance in achieving revenue milestones, operating milestones and other operating metrics, or has materially delayed or underperformed in raising additional capital as expected, if deemed necessary. Generally, when a borrower is in this category, its enterprise value likely still comfortably exceeds its loan balance (LTV <=60%), it has sufficient cash resources over the near to medium term or has the ability to raise additional capital as needed, and there continues to be some potential for warrant gains. There is no principal loss expected.

2. The borrower has significantly underachieved expected revenue milestones, operating milestones and other operating metrics, or has raised, or is expected to raise, less capital than expected under less desirable terms, if deemed necessary. Generally, when a borrower falls in this category, its enterprise value likely exceeds its loan balance, but with a higher variance and a level with significantly lower equity cushion than expected (LTV <=80%), its liquidity and ability to raise additional capital is significantly less than desired, and it is unlikely that there will be warrant gains. There is no or minimal current loss expected and low-to-moderate potential for future principal loss.

1. The borrower's performance is well below expectations across revenue and operating metrics; its ability to arrest declining performance is doubtful; and has likely not raised sufficient capital to operate effectively or retire its debt obligation to the Company. Generally, when a borrower falls in this category, its enterprise value may not exceed its loan balance (LTV > 80%), it is likely to have insufficient cash to operate according to its plan over the near to medium term and its ability to raise additional capital is questionable, and there is no potential for warrant gains. There is a high degree of risk of principal loss.

The following table shows the distribution of our loan investments on the 1 to 5 investment risk rating scale range at fair value as of June 30, 2025:

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| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** |
| **Investment Risk Rating** | **Fair Value** | **% of Total Debt<br>Investments<br>at Fair Value** |
| 4 | $69229181 | 100.0% |
| **Total** | $**69229181** | **100.0%** |

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**Debt Investments on Non-Accrual Status**

When a debt security becomes 90 days or more past due, or if our management otherwise does not expect that principal, interest, and other obligations due will be collected in full, we will generally place the debt security on non-accrual status and cease recognizing interest income on that debt security until all principal and interest due has been paid or we believe the borrower has demonstrated the ability to repay its current and future contractual obligations. Any uncollected interest is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, we may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection.

As of June 30, 2025, no loans to portfolio companies were on non-accrual status.

**Results of Operations**

The following table represents the operating results for the period from the Commencement of Operations through June 30, 2025:

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| | | |
|:---|:---|:---|
|  | **For the Three Months Ended June 30, 2025** | **For the period<br>from the<br>Commencement<br>of Operations<br>through<br>June 30, 2025** |
| Total investment income | $2848020 | $3695789 |
| Net expenses | 1383201 | 1808001 |
| Net investment income | 1464819 | 1887788 |
| Net unrealized gain (loss) | 1086380 | 1075071 |
| Net realized gain (loss) | - | - |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | $**2551199** | $**2962859** |

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Net increase (decrease) in net assets resulting from operations can vary from period to period as a result of various factors, including the level and type of new investment commitments, expenses, the recognition of realized gains and losses, and changes in unrealized gains and losses on the investment portfolio. As a result, comparisons may not be meaningful.

***Investment Income***

Investment income for the period from the Commencement of Operations through June 30, 2025 was as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **For the period<br>from the<br>Commencement<br>of Operations<br>through<br>June 30, 2025** |
| From non-controlled / non-affiliated investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | $2106894 | $2739409 |
| &nbsp;&nbsp;&nbsp;&nbsp;OID Accretion | 98908 | 132752 |
| &nbsp;&nbsp;&nbsp;&nbsp;PIK interest | 9048 | 10564 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrant accretion | 399032 | 538406 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amendment fee accretion | 5731 | 7822 |
| Total from non-controlled / non-affiliated investments: | 2619613 | 3428953 |
| Other interest income | 228407 | 266836 |
| **Total Investment Income** | $**2848020** | $**3695789** |

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For the three months ended and period from the Commencement of Operations through June 30, 2025, total investment income was $2,848,020 and $3,695,789, respectively, the majority of which was driven by interest income on the senior secured term loan investments.

For the three months ended and period from the Commencement of Operations through June 30, 2025, total investment income from non-controlled / non-affiliated investments was $2,619,613 and $3,428,953, respectively, which represents an approximate effective yield of 19.1% and 19.5%, respectively, on the average cost of investments during the periods. The weighted average yield of our income producing investments is not the same as a return on investment for our shareholders but, rather, relates to our investment portfolio and is calculated before the payment of all of our fees and expenses. There can be no assurance that the weighted average yield will remain at its current level.

***Expenses***

Total expenses were made up of the following for the period ended June 30, 2025:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **For the period<br>from the<br>Commencement<br>of Operations<br>through<br>June 30, 2025** |
| Interest expense | $228934 | $313357 |
| Base Management Fees | 247544 | 305002 |
| Income Incentive fees | 295924 | 370164 |
| Capital Gains Incentive Fees | 212085 | 209823 |
| Professional fees | 264547 | 403643 |
| Board of Trustees' expense | 39322 | 77322 |
| Administration fees | 65510 | 88839 |
| Other general and administrative expenses | 29335 | 39851 |
| **Total expenses** | $**1383201** | $**1808001** |

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The Company entered into the Investment Advisory Agreement with the Investment Adviser in which the Investment Adviser, subject to the overall supervision of the Company's Board, manages the day-to-day operations of, and provides investment advisory services to the Company.

Pursuant to the Investment Advisory Agreement with the Investment Adviser, the Company pays the Investment Adviser a fee for its services under the Investment Advisory Agreement consisting of two components – a base management fee ("Base Management Fee") and an incentive fee (the "Incentive Fee"). The cost of both the base Management Fee and the Incentive Fee will ultimately be borne by the shareholders.

*Management Fees*

For the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025, Base Management Fees were $247,544 and $305,002, respectively. Management fees are payable quarterly in arrears at an annual rate of 1.50% of the Company's average adjusted gross assets. The average adjusted gross asset balance will be the average of the Company's total gross assets (including assets acquired with leverage but adjusted to exclude cash and cash equivalents) at the end of the two most recently completed calendar quarters.

*Incentive Fees*

For the three months ended June 30, 2025 and the period from the Commencement of Operations through June 30, 2025, Incentive Fees were $508,009 and $579,987, respectively. Pursuant to the Investment Advisory Agreement, the Company pays the Investment Adviser an Incentive Fee consisting of two parts: (i) an income incentive fee, determined and paid quarterly, based on pre-incentive fee net investment income of the Company (the "Income Incentive Fee") and (ii) a capital gains incentive fee, determined and paid in arrears, based on net capital gains as of the end of each calendar year or upon the termination of the Investment Advisory Agreement (the "Capital Gains Incentive Fee"), which are described in more detail at Note 3 – Agreements and Related Party Transactions.

*Other Expenses*

Professional fees include legal, audit, tax, and valuation fees incurred related to the management and reporting of the Company. Administration fees include transfer agent and legal administration services. Other general and administrative expenses include custody fees and insurance costs.

The Company entered into an Expense Support and Conditional Reimbursement Agreement with the Investment Adviser. For additional information, see Note 3 – Agreements and Related Party Transactions.

*Income Taxes*

The Company qualifies and intends to elect to be treated as a RIC under Subchapter M of the Code. To qualify and be subject to tax as a RIC for U.S. federal income tax purposes, the Company will need to ensure that (among other things) it satisfies certain sources of income and asset diversification requirements and distributes to its shareholders annually an amount equal to at least 90% of its "investment company taxable income" for that year, which is generally its ordinary income plus the excess, if any, of its realized net short-term capital gains over its realized net long-term capital losses. The Company will be subject to a nondeductible excise tax for any undistributed income. For the period from the Commencement of Operations through June 30, 2025, the Company did not incur any U.S. federal income taxes.

***Net Change in Unrealized Gain (Loss)***

We fair value our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses. Net change in unrealized gain (loss) was composed of the following:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **For the period<br>from the<br>Commencement<br>of Operations<br>through<br>June 30, 2025** |
| Net change in unrealized gain (loss) on investments | $1086380 | $1075071 |
| **Net Unrealized Gain (Loss) on Investments** | $**1086380** | $**1075071** |

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The net change in unrealized gains (losses) for the three months ended and the period from the Commencement of Operations through June 30, 2025 was due to the appreciation of value in the Company's portfolio investments.

**Financial Condition, Liquidity and Capital Resources**

The Company generates cash primarily from the proceeds of any offering of Shares and from cash flows from proceeds from sales of its investments. It may also fund a portion of its investments through borrowings from borrowings under the KeyBank Credit Facility, and issuances of senior securities, including before it has fully invested the proceeds of the Private Offering. The primary use of cash will be investments in portfolio companies, payments of expenses and payment of cash distributions to shareholders.

***Net Assets***

The Company was initially capitalized on December 31, 2024 when the Investment Adviser purchased 1,000 Shares of the Company, which represented all of the issued and outstanding Shares of the Company, at an offering price of $25.00 per share for an aggregate purchase price of $25,000. On March 3, 2025, as a result of the Formation Transaction, the equity interests of the Legacy Fund held by the Legacy Fund Members were converted into Shares. Immediately thereafter, such Shares were distributed to the Legacy Fund Members.

The following table sets forth Share issuances life-to-date through the period ended June 30, 2025.

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| | | | |
|:---|:---|:---|:---|
|  | **NAV** | **Shares** | **Amount** |
| December 31, 2024 | $25.00 | 1000 | $25000 |
| March 3, 2025 | $25.00 | 2722631 | $68065767 |
| April 1, 2025 | $25.01 | 650150 | $16260250 |

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The Company paid cash distributions to its shareholders of record as of March 31, 2025 of $381,308 for the three months ended June 30, 2025. The Company paid cash distributions of $1,213,956 for the period from the Commencement of Operations through June 30, 2025, which included the quarterly distribution of $381,308 and the acquired distribution payable of $832,648 in association with the Formation Transaction.

On June 27, 2025, the Board declared a distribution of $0.50 per share for Shareholders of record as of June 30, 2025, for a total amount of $1,686,890. The distribution was paid on July 16, 2025. See Note 8 – Net Assets.

*Share Repurchase Program*

The Company does not intend to list its Shares on a securities exchange and does not expect there to be a public market for its shares. As a result, investors' ability to sell Shares will be limited.

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Two years after the date on which the Company commences the Private Offering, and at the discretion of the Board, the Company intends to commence a share repurchase program in which it intends to repurchase annually up to 10% of outstanding Shares (by number of Shares). Under the share repurchase program, to the extent the Company offers to repurchase Shares during an annual period, the Company expects to repurchase Shares pursuant to tender offers as of the applicable quarter-end using a purchase price equal to the NAV per Share as of the last calendar day of the applicable quarter, except that Shares that have not been outstanding for at least one year will be repurchased at 98% of such NAV (an "Early Repurchase Deduction"). Any early Repurchase Deduction will be retained by the Company for the benefit of remaining shareholders.

The Board may amend or suspend the share repurchase program if, in its reasonable judgment, it deems such action to be in the Company's best interest and the best interest of its shareholders, such as when a repurchase offer would place an undue burden on liquidity, adversely affect operations or risk having an adverse impact on the Company that would outweigh the benefit of the repurchase offer. As a result, Share repurchases may not be available annually. Should the Board suspend the share repurchase program, the Board will consider whether the continued suspension of the program is in the best interests of the Company and shareholders on a quarterly basis. The Company intends to conduct such repurchase offers in accordance with the requirements of Rule 13e-4 promulgated under the Exchange Act and the 1940 Act.

The Company did not make any share repurchases for the period from the Commencement of Operations through June 30, 2025.

***Borrowings***

*Reduced Asset Coverage Requirements*

In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to incur borrowings, issue debt securities or issue preferred stock, if immediately after the borrowing or issuance, the ratio of total assets (less total liabilities other than indebtedness) to total indebtedness plus preferred stock, is at least 150%. On February 27, 2025, a "required majority" (as such term is defined in Section 57(o) of the 1940 Act) including our initial stockholder approved the application to us of the 150% minimum asset coverage ratio set forth in Section 61(a)(2) of the 1940 Act. As a result, we are permitted to potentially borrow $2 for investment purposes of every $1 of investor equity. As of June 30, 2025, our asset coverage ratio was approximately 441%. Our asset coverage ratio per unit, which is calculated my multiplying the asset coverage ratio by one thousand, was approximately $4,410.

The Company had $25.0 million of gross outstanding borrowings as of June 30, 2025 and did not have any preferred shares issued and outstanding as of June 30, 2025. As of June 30, 2025, the Company was in compliance with the 150% asset coverage requirement under the 1940 Act.

***Commitments and Off-Balance Sheet Arrangements***

The Company's commitments and contingencies consist primarily of unfunded commitments to extend credit in the form of loans to the Company's portfolio companies. The Company considers the unfunded commitment in the determination of fair value of the funded portion of the investment, as presented within the Consolidated Schedule of Investments. As of June 30, 2025, the Company had the following commitments to fund delayed draw term loans and an uncommitted accordion.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Industry** | **Type of Investment** | **Total<br>Committed** | **Less: Funded Commitments** | **Total Unfunded Commitments**<sup>1</sup> | **Total Unfunded Commitments Available for Draw**<sup>1</sup> |
| &nbsp;&nbsp;Galileo Learning LLC | Education | Delayed draw term loan | $2000000 | $- | $2000000 | $- |
| &nbsp;&nbsp;Organixx | Food & Beverage | Delayed draw term loan | 1000000 | - | 1000000 | - |
| &nbsp;&nbsp;Happy Head, Inc. | Health & Wellness | Delayed draw term loan | 2666667 | - | 2666667 | 1333333 |
| &nbsp;&nbsp;Roq.Ad, Inc. | Technology – Business | Delayed draw term loan | 1000000 | 1000000 | - | - |
| &nbsp;&nbsp;Roq.Ad, Inc. | Technology – Business | Uncommitted accordion | 6000000 | - | 6000000 | - |
| &nbsp;&nbsp;Hearth Display, Inc. | Technology – Consumer | Delayed draw term loan | 16000000 | 2000000 | 14000000 | - |
| &nbsp;&nbsp;Predictive Fitness, Inc. | Technology – Health & Wellness | Delayed draw term loan | 3000000 | - | 3000000 | - |
| &nbsp;&nbsp;Atlas Card | Consumer Finance | Delayed draw term loan | 18000000 | - | 18000000 | 2000000 |
| &nbsp;&nbsp;SE Ranking | Application Software | Delayed draw term loan | 1800000 | - | 1800000 | - |
| &nbsp;&nbsp;Capacity (AI Software) | Data Processing | Delayed draw term loan | 3600000 | - | 3600000 | - |
|  |  |  | $**55066667** | $**3000000** | $**52066667** | $**3333333** |

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<sup>1.</sup>The unfunded delayed draw term loans may or may not be funded to the borrowing party in the future. These unfunded contractual commitments are generally at the Company's discretion and/or are dependent on upon the portfolio company meeting certain performance obligations before the debt commitment becomes available to be drawn. Furthermore, the Company's credit agreements contain customary lending provisions that allow the Company relief from funding obligations for previously made commitments in instances where the underlying portfolio company experiences materially adverse events that affect the financial condition or business outlook for the Company. As of June 30, 2025, $3.3 million was available to be drawn upon by two portfolio companies at their discretion.

Additionally, from time to time, the Investment Adviser may commit to an investment on behalf of the investment vehicles it manages, including the Company. Certain terms of these investments are not finalized at the time of the commitment and the Company's allocation may change prior to the date of funding.

The Company will fund future unfunded commitments, if any, from the same sources it uses to fund its investment commitments at the time they are made (which are typically through existing cash and cash equivalents and borrowings under its KeyBank Credit Facility) and maintains adequate liquidity to fund its unfunded commitments through these sources.

From time to time, the Company may become a party to certain legal proceedings incidental to the normal course of our business. As of June 30, 2025, management was not aware of any pending or threatened litigation.

**Related Party Transactions**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Investment Advisory Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Expense Support and Conditional Reimbursement Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Administration and Fund Services Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the License Agreement.

Further, the Company intends to co-invest from time to time, and intends to make co-investments with certain affiliates of the Investment Adviser.

See Note 3 – Agreements and Related Party Transactions.

**Recent Developments**

*Subscriptions*

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As of July 1, 2025, the Company issued an aggregate of 495,706 Shares (with the final number of shares being determined on July 17, 2025) for an aggregate offering price of $12,526,000.

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| | | | |
|:---|:---|:---|:---|
|  | **NAV** | **Shares** | **Amount** |
| July 1, 2025 | $25.27 | 495706 | $12526500 |

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*Investment Activity*

On July 1, 2025, the Company invested $1.2 million into a first lien senior secured term loan with Stress Free Auto Care. Stress Free Auto Care issued warrants equivalent to 0.1% of fully diluted shares to the Company with this loan, which are convertible into Common Stock of the company.

On July 11, 2025, the Company invested $2.4 million into a first lien senior secured term loan with Milk + Honey Holdings, LLC. Milk + Honey Holdings, LLC issued 5,817 warrants to the Company with this loan, which are convertible into Series A Preferred Units of the company.

On July 21, 2025, the Company funded a delayed draw term loan of $2.0 million related to its investment in Atlas Card. This amount was related to an unfunded commitment that the Company had to the portfolio company as of June 30, 2025. Atlas Card issued 9,584 warrants to the Company with this loan, which are convertible into Series B-2 preferred stock of the company.

On July 22, 2025, the Company funded a delayed draw term loan of $1.2 million related to its investment in Capacity (AI Software). This amount was related to an unfunded commitment that the Company had to the portfolio company as of June 30, 2025. Capacity (AI Software) issued warrants equivalent to 0.15% of fully diluted shares to the Company with this loan, which are convertible into Series D Common Shares of the company.

On July 25, 2025, the Company invested $2.8 million into a first lien senior secured term loan with Kudo, Inc. Kudo, Inc. issued warrants equivalent to 0.12% of fully diluted shares to the Company with this loan, which are convertible into Series A Preferred Stock of the company.

On July 25, 2025, the Company funded an uncommitted accordion of $6.0 million related to its investment in Roq.Ad, Inc. This amount was related to an unfunded commitment that the Company had to the portfolio company as of June 30, 2025. Roq.Ad, Inc. issued warrants equivalent to 0.6% of fully diluted shares to the Company with this loan, which are convertible into Series A-1 Preferred stock of the company.

On July 28, 2025, the Company invested $10.8 million into a split lien credit facility with Beach House Group Global, LLC ("Beach House"). Beach House issued 1,682 warrants to the Company with this facility, which are convertible into Class D Preferred Units of the company.

On July 29, 2025, the Company invested $7.0 million into a first lien senior secured term loan with Coravin, Inc. Coravin, Inc. issued 408,451 warrants to the Company with this loan, which are convertible into Series D-1 Preferred Stock of the company.

The Company has not funded any additional investments from June 30, 2025 through the date of this filing.

*Distributions*

On July 16, 2025, the Company paid the distribution of $0.50 per share to shareholders of record as of June 30, 2025, for a total amount of $1,686,890.

*Other Activity*

On July 2, 2025, the Company repaid its $25,000,000 of gross outstanding borrowings to KeyBank. The Company had $0 of gross outstanding borrowings to KeyBank as of the date of filing.

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On July 21, 2025, the Company and the Investment Adviser received a new co-investment exemptive order from the SEC. The order permits certain joint transactions that would otherwise be prohibited under Section 57(a)(4) of the 1940 Act and Rule 17d-1 thereunder. Specifically, the exemptive relief allows one or more closed-end management companies (including the Company) to participate in co-investment opportunities alongside affiliated investment vehicles, subject to the conditions set forth in the order, including oversight (and in certain limited cases, approval) by the Board and compliance with established allocation procedures designed to ensure fair and equitable treatment of all participating entities.

**Critical Accounting Estimates**

The preparation of the consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Change in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ.

***Valuation of Investments***

Section 2(a)(41) of the 1940 Act requires us to value our assets as follows: (i) the third party price for securities for which a quotation is readily available; and (ii) for all other securities and assets, fair value, as determined in good faith by the Board.

The Company values its investments in accordance with FASB ASC 820, Fair Value Measurements ("ASC 820"), which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the applicable measurement date. ASC 820 also provides a framework for measuring fair value, establishes a fair value hierarchy based on the observability of inputs used to measure fair value, and prescribes disclosure requirements for fair value measurements.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated the Investment Adviser as the valuation designee (the "Valuation Designee") responsible for valuing all of the Company's investments, including making fair valuation determinations as needed. The Investment Adviser has established a valuation committee (the "Valuation Committee") to carry out the ongoing fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation of the Company's investments.

In calculating the value of total assets, the Valuation Designee values investments for which market quotations are readily available at such market quotations if they are deemed to represent fair value. Securities that are not publicly traded or whose market price is not readily available or whose market quotations are not deemed to represent fair value are valued at fair value as determined, in good faith, by the Valuation Designee. Market quotations may be deemed not to represent fair value in certain circumstances where the Investment Adviser reasonably believes that facts and circumstances applicable to an issuer, a seller or purchaser or the market for a particular security causes current market quotes not to reflect the fair value of the security. As the majority of the Company's portfolio is made up of Level 3 assets under ASC 820, it is expected that market quotations will generally not be readily available. The Investment Adviser has engaged a third-party valuation firm to assist in the determination of fair value on a quarterly basis. The Valuation Designee and the independent valuation firm consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such Level 3 categorized assets.

As part of the valuation process, the Valuation Designee takes into account relevant factors in determining the fair value of the Company's investments, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the estimated enterprise value of a portfolio company (i.e., the total fair value of the portfolio company's debt and equity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the portfolio company's ability to make payments based on its earnings and cash flow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the nature and realizable value of any collateral or expected cash proceeds upon exit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•recent transactions of the portfolio company or peers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the assessment of the portfolio company in adhering to its business plan, underwriting expectations, and financial projections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the markets in which the portfolio company does business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a comparison of the portfolio company's securities to any similar publicly traded securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•overall changes in the interest rate environment and the credit markets that may affect the price at which similar investments may be made in the future.

With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, the Valuation Designee has approved a multi-step valuation process that will be performed on a quarterly basis, as described below:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)each portfolio company or investment is initially valued by the investment professionals of the Valuation Designee responsible for the portfolio investment or through the use of the independent valuation firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)preliminary valuation conclusions are then documented and discussed with the valuation committee of the Valuation Designee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)the Valuation Designee discusses valuations and determines in good faith the fair value of each investment in the portfolio based on input of its valuation committee and the applicable independent valuation firm.

This valuation process is conducted on a quarterly basis.

ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. ASC 820 also provides guidance regarding a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. In accordance with ASC 820, these inputs are summarized in the three levels listed below:

Level 1 — Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2 — Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

Transfers between levels, if any, are recognized at the beginning of the period in which the transfer occurred. In addition to using the above inputs in investment valuations, the Valuation Designee applies the valuation policy approved by the Company's Board that is consistent with ASC 820.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company's investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected herein.

Our accounting policy regarding the fair value of our investments is critical because the determination of fair value involves subjective judgments and requires the use of estimates. Due to the inherent uncertainty of determining fair value measurements, the fair values of our investments may differ from the amounts that we ultimately realize or collect from sales or maturities of our investments, and the differences could be material. In addition, changes in the market environment and other events that may occur over the life of an investment may cause the gains or losses ultimately realized on our investments to be different than the unrealized gains or losses reflected herein.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

We are subject to financial market risks, including valuation risk and interest rate risk.

***Investment Valuation Risk***

We have invested, and plan to continue to invest, primarily in illiquid debt securities and equity-related securities of private companies. Most of our investments will not have a readily available market price, and we value these investments at fair value in accordance with our valuation policy. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.

***Interest Rate Risk***

Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we will fund a portion of our investments with borrowings, our net investment income will be affected by the difference between the rate at which we invest and the rate at which we borrow. We had $25.0 million of gross debt obligations outstanding as of June 30, 2025, and $0 at Commencement of Operations. Significant changes in interest rates could impact the ability of our portfolio companies to meet their debt obligations or could impact our ability to negotiate transactions, both positively and negatively.

***Credit Risk***

Credit risk arises from the possibility that borrowers, or counterparties may fail to meet their financial obligations. While we plan to originate, and otherwise invest, primarily in senior secured loans, we may nonetheless be exposed to losses resulting from default and foreclosure. Therefore, the value of the underlying collateral, the creditworthiness of the borrower, and the priority of the lien are each of great importance. The Investment Adviser actively manages this risk by evaluating the creditworthiness of borrowers and counterparties, establishing credit limits, and using appropriate collateral or guarantees where applicable. Additionally, the Investment Adviser diversifies its portfolio of investments to mitigate the impact of any individual credit exposure. While the Investment Adviser believes that the credit risk exposure is manageable, changes in economic conditions or customer credit profiles could impact the collectability of the receivables and the performance of our investments.

**Item 4. Controls and Procedures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Evaluation of Disclosure Controls and Procedures**

In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended, we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q.

Based on that evaluation, we, including our Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic Securities and Exchange Commission (the "SEC") filings is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information was accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, we recognize 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 necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Changes in Internal Controls Over Financial Reporting**

There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II. OTHER INFORMATION**

## **Item 1. L egal Proceedings** 
Neither the Company nor the Investment Adviser is currently subject to any material legal proceedings, nor, to the Company's knowledge, is any material legal proceeding threatened against the Company or the Investment Adviser.

From time to time, the Company or the Investment Adviser may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Company's rights under contracts with the Company's portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon the Company's financial condition or results of operations.

**Item 1A. Risk Factors**

As of June 30, 2025, there have been no material changes from the risk factors set forth in our Registration Statement on Form 10 filed with the SEC on March 3, 2025, as amended on April 17, 2025 and May 2, 2025. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

## **Item 2. Unregistered Sales of Equity Securities and Use of Proceeds** 
In conjunction with the merger of the Legacy Fund with and into the Company, which occurred on March 3, 2025, the Company issued 2,722,630.716 Shares to the Legacy Fund Members in connection with the Formation Transaction.

As of April 1, 2025, the Company sold 650,150 Shares at a price per Share of $25.01 (with the final number of shares being determined on April 16, 2025) to accredited investors in a private placement of Shares for an aggregate purchase price of $16,260,250.

As of July 1, 2025, the Company sold 495,706 Shares at a price per Share of $25.27 (with the final number of shares being determined on July 17, 20025) to accredited investors in a private placement of Shares for an aggregate purchase price of $12,526,500.

## **Item 3. Defaults Up on Senior Securities** 
None.

## **Item 4. Mine S afety Disclosures** 
Not Applicable.

## **Item 5. Other Inf ormation** 
None.

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## **Item 6 . Exhibits.** 

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| 3.1 | [<u>Agreement and Declaration of Trust (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form 10, filed on March 3, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2043759/000158064225001339/ex3-1.htm) |
| 3.2 | [<u>Bylaws (incorporated by reference to Exhibit 3.2 to the Company's Registration Statement on Form 10, filed on March 3, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2043759/000158064225001339/ex3-2.htm) |
| 10.1 | [<u>Loan Servicing Agreement, dated May 5, 2025, by and between the Company and Alter Domus (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed on May 8, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2043759/000158064225003026/lagoevergreen_ex10-1.htm) |
| 10.2 | [<u>First Amendment to the Loan and Security Agreement, dated May 5, 2025, by and between LAGO Evergreen SPE, LLC, as borrower, the Company, as servicer and as originator, LAGO Asset Management, LLC, as investment manager, the lenders and KeyBank National Association, as syndication agent and as agent for the lenders (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, filed on May 8, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2043759/000158064225003026/lagoevergreen_ex10-2.htm) |
| 31.1\* | [<u>Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](ck0002043759-ex31_1.htm) |
| 31.2\* | [<u>Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](ck0002043759-ex31_2.htm) |
| 32.1\*\* | [<u>Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](ck0002043759-ex32_1.htm) |
| 32.2\*\* | [<u>Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](ck0002043759-ex32_2.htm) |
| 101.INS\* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 104 | Cover Page Interactive Data File (embedded within the XBRL document) |

---

\* Filed herewith.

\*\* Furnished herewith.

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## **SIGNA TURES** 
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.

---

| | | |
|:---|:---|:---|
|  | **LAGO Evergreen Credit** | **LAGO Evergreen Credit** |
|  | By: | /s/ Tim Gottfried |
|  |  | Name: Tim Gottfried |
|  |  | Title: Chief Executive Officer and Chairman of the Board of Trustees  |
| Date: August 11, 2025 |  |  |

---

---

| | | |
|:---|:---|:---|
|  | **LAGO Evergreen Credit** | **LAGO Evergreen Credit** |
|  | By: | /s/ Todd Knudsen |
|  |  | Name: Todd Knudsen |
|  |  | Title: Chief Financial Officer  |
| Date: August 11, 2025 |  |  |

---

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Tim Gottfried, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of LAGO Evergreen Credit (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| Date: August 11, 2025 |
| /s/ Tim Gottfried |
| Tim Gottfried |
| Chief Executive Officer |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Todd Knudsen, Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of LAGO Evergreen Credit (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| Date: August 11, 2025 |
| /s/ Todd Knudsen |
| Todd Knudsen |
| Chief Financial Officer |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, as Chief Executive Officer of LAGO Evergreen Credit (the "Company"), does hereby certify that to the undersigned's knowledge:

1. the Company's Form 10-Q for the quarter ended June 30, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Company's Form 10-Q for the quarter ended June 30, 2025 fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| Date: August 11, 2025 |
| /s/ Tim Gottfried |
| Tim Gottfried |
| Chief Executive Officer |

---

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, as Chief Financial Officer of LAGO Evergreen Credit (the "Company"), does hereby certify that to the undersigned's knowledge:

1. the Company's Form 10-Q for the quarter ended June 30, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Company's Form 10-Q for the quarter ended June 30, 2025 fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| Date: August 11, 2025 |
| /s/ Todd Knudsen |
| Todd Knudsen |
| Chief Financial Officer |

---

------