# EDGAR Filing Document

**Accession Number:** 0001501729
**File Stem:** 0001628280-25-040339
**Filing Date:** 2025-8
**Character Count:** 424730
**Document Hash:** a08d9bb1e413312b523a883a492fe43c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-040339.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001628280-25-040339

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 76

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FS Specialty Lending Fund
- **CENTRAL INDEX KEY:** 0001501729

**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:** 814-00841
- **FILM NUMBER:** 251217582

**BUSINESS ADDRESS:**
- **STREET 1:** 201 ROUSE BOULEVARD
- **CITY:** PHILADELPHIA
- **STATE:** PA
- **ZIP:** 19112
- **BUSINESS PHONE:** 215-495-1150

**MAIL ADDRESS:**
- **STREET 1:** 201 ROUSE BOULEVARD
- **CITY:** PHILADELPHIA
- **STATE:** PA
- **ZIP:** 19112

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FS Energy & Power Fund
- **DATE OF NAME CHANGE:** 20100920

?xml version='1.0' encoding='ASCII'? fssl-20250630

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**___________________________**

**FORM 10-Q**

**___________________________**

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

**FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025**

---

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

---

**COMMISSION FILE NUMBER: 814-00841**

**___________________________**

**FS Specialty Lending Fund**

(Exact name of registrant as specified in its charter)

**___________________________**

---

| | |
|:---|:---|
| **Delaware** | **27-6822130** |
| (State or other jurisdiction of <br>incorporation or organization) | (I.R.S. Employer <br>Identification No.) |
| **201 Rouse Boulevard**<br>**Philadelphia, Pennsylvania** | **19112** |
| (Address of principal executive office) | (Zip Code) |

---

**Registrant's telephone number, including area code: (215) 495-1150**

**___________________________**

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

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

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

Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company <br> ◻ ◻ ⌧ ◻ ◻

If an emerging growth company, indicate by check mark if the registrant has elected to not 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 ⌧.

Securities registered pursuant to Section 12(b) Act: None

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name on each exchange on which registered** |
| **N/A** | **N/A** | **N/A** |

---

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. The issuer had 75,917,730 common shares of beneficial interest outstanding as of August 1, 2025.

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **<u>[PART I—FINANCIAL INFORMATION](#ifef9dc396265404099df1d2fe5d33b12_10)</u>** | **<u>[PART I—FINANCIAL INFORMATION](#ifef9dc396265404099df1d2fe5d33b12_10)</u>** | |
| <u>[ITEM 1.](#ifef9dc396265404099df1d2fe5d33b12_13)</u> | <u>[FINANCIAL STATEMENTS](#ifef9dc396265404099df1d2fe5d33b12_13)</u> | |
| | <u>[Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024](#ifef9dc396265404099df1d2fe5d33b12_16)</u> | <u>[1](#ifef9dc396265404099df1d2fe5d33b12_16)</u> |
| | <u>[Unaudited Consolidated Statements of Operations for the three and six months ended](#ifef9dc396265404099df1d2fe5d33b12_19)[June 30,](#ifef9dc396265404099df1d2fe5d33b12_16)[2025 and 2024](#ifef9dc396265404099df1d2fe5d33b12_19)</u> | <u>[2](#ifef9dc396265404099df1d2fe5d33b12_19)</u> |
| | <u>[Unaudited Consolidated Statements of Changes in Net Assets for the three and six months ended](#ifef9dc396265404099df1d2fe5d33b12_22)[June 30](#ifef9dc396265404099df1d2fe5d33b12_16)[, 2025 and 2024](#ifef9dc396265404099df1d2fe5d33b12_22)</u> | <u>[3](#ifef9dc396265404099df1d2fe5d33b12_22)</u> |
| | <u>[Unaudited Consolidated Statements of Cash Flows for the six months ended](#ifef9dc396265404099df1d2fe5d33b12_25)[June 30](#ifef9dc396265404099df1d2fe5d33b12_16)[, 2025 and 2024](#ifef9dc396265404099df1d2fe5d33b12_25)</u> | <u>[4](#ifef9dc396265404099df1d2fe5d33b12_25)</u> |
| | <u>[Consolidated Schedules of Investments as of](#ifef9dc396265404099df1d2fe5d33b12_28)[June 30](#ifef9dc396265404099df1d2fe5d33b12_16)[, 2025 (Unaudited) and December 31, 2024](#ifef9dc396265404099df1d2fe5d33b12_28)</u> | <u>[5](#ifef9dc396265404099df1d2fe5d33b12_28)</u> |
| | <u>[Notes to Unaudited Consolidated Financial Statements](#ifef9dc396265404099df1d2fe5d33b12_34)</u> | <u>[18](#ifef9dc396265404099df1d2fe5d33b12_34)</u> |
| <u>[ITEM 2.](#ifef9dc396265404099df1d2fe5d33b12_73)</u> | <u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#ifef9dc396265404099df1d2fe5d33b12_73)</u> | <u>[37](#ifef9dc396265404099df1d2fe5d33b12_73)</u> |
| <u>[ITEM 3.](#ifef9dc396265404099df1d2fe5d33b12_109)</u> | <u>[QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#ifef9dc396265404099df1d2fe5d33b12_109)</u> | <u>[49](#ifef9dc396265404099df1d2fe5d33b12_109)</u> |
| <u>[ITEM 4.](#ifef9dc396265404099df1d2fe5d33b12_112)</u> | <u>[CONTROLS AND PROCEDURES](#ifef9dc396265404099df1d2fe5d33b12_112)</u> | <u>[49](#ifef9dc396265404099df1d2fe5d33b12_112)</u> |
| **<u>[PART II—OTHER INFORMATION](#ifef9dc396265404099df1d2fe5d33b12_115)</u>** | **<u>[PART II—OTHER INFORMATION](#ifef9dc396265404099df1d2fe5d33b12_115)</u>** | |
| <u>[ITEM 1.](#ifef9dc396265404099df1d2fe5d33b12_118)</u> | <u>[LEGAL PROCEEDINGS](#ifef9dc396265404099df1d2fe5d33b12_118)</u> | <u>[50](#ifef9dc396265404099df1d2fe5d33b12_118)</u> |
| <u>[ITEM 1A.](#ifef9dc396265404099df1d2fe5d33b12_121)</u> | <u>[RISK FACTORS](#ifef9dc396265404099df1d2fe5d33b12_121)</u> | <u>[50](#ifef9dc396265404099df1d2fe5d33b12_121)</u> |
| <u>[ITEM 2.](#ifef9dc396265404099df1d2fe5d33b12_124)</u> | <u>[UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](#ifef9dc396265404099df1d2fe5d33b12_124)</u> | <u>[50](#ifef9dc396265404099df1d2fe5d33b12_124)</u> |
| <u>[ITEM 3.](#ifef9dc396265404099df1d2fe5d33b12_127)</u> | <u>[DEFAULTS UPON SENIOR SECURITIES](#ifef9dc396265404099df1d2fe5d33b12_127)</u> | <u>[50](#ifef9dc396265404099df1d2fe5d33b12_127)</u> |
| <u>[ITEM 4.](#ifef9dc396265404099df1d2fe5d33b12_130)</u> | <u>[MINE SAFETY DISCLOSURES](#ifef9dc396265404099df1d2fe5d33b12_130)</u> | <u>[50](#ifef9dc396265404099df1d2fe5d33b12_130)</u> |
| <u>[ITEM 5.](#ifef9dc396265404099df1d2fe5d33b12_133)</u> | <u>[OTHER INFORMATION](#ifef9dc396265404099df1d2fe5d33b12_133)</u> | <u>[50](#ifef9dc396265404099df1d2fe5d33b12_133)</u> |
| <u>[ITEM 6.](#ifef9dc396265404099df1d2fe5d33b12_136)</u> | <u>[EXHIBITS](#ifef9dc396265404099df1d2fe5d33b12_136)</u> | <u>[51](#ifef9dc396265404099df1d2fe5d33b12_136)</u> |
| | <u>[SIGNATURES](#ifef9dc396265404099df1d2fe5d33b12_139)</u> | <u>[52](#ifef9dc396265404099df1d2fe5d33b12_139)</u> |

---

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**PART I—FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**FS Specialty Lending Fund**

**Consolidated Balance Sheets**

**(in thousands, except share and per share amounts)**

    

---

| | | |
|:---|:---|:---|
| | **June 30, 2025<br> (Unaudited)** | **December 31,<br>2024** |
| **Assets** | | |
| Investments, at fair value |  |  |
| &nbsp;&nbsp;Non-controlled/unaffiliated investments (amortized cost—$1,594,165 and $1,830,451, respectively) | $1573978 | $1790694 |
| &nbsp;&nbsp;Non-controlled/affiliated investments (amortized cost—$90,757 and $73,338, respectively) | 72700 | 51943 |
| Total investments, at fair value (amortized cost—$1,684,922 and $1,903,789, respectively) | 1646678 | 1842637 |
| Cash and cash equivalents | 232901 | 202091 |
| Restricted cash | 2599 | 36945 |
| Foreign currency, at fair value (cost—$350 and $0, respectively) | 356 |  |
| Receivable for investments sold and repaid | 22593 | 33895 |
| Interest receivable | 16096 | 14383 |
| Dividends receivable | 1417 | 330 |
| Unrealized appreciation on swap contracts |  | 70 |
| Swap income receivable |  | 773 |
| Prepaid expenses and other assets |  | 112 |
| &nbsp;&nbsp;&nbsp;**Total assets** | $1922640 | $2131236 |
| **Liabilities** |  |  |
| Payable for investments purchased | $3847 | $82699 |
| Repurchase facility payable (net of deferred financing costs of $2,458 and $3,486, respectively)<sup>(1)</sup> | 397542 | 496514 |
| Unrealized depreciation on forward foreign currency exchange contracts | 305 |  |
| Swap income payable | 45 | 528 |
| Shareholder distributions payable |  | 34335 |
| Management fees payable | 8662 | 8672 |
| Administrative services expense payable | 819 | 346 |
| Interest payable | 1236 | 1365 |
| Trustees' fees payable | 161 | 164 |
| Other accrued expenses and liabilities | 4988 | 3157 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** | 417605 | 627780 |
| Commitments and contingencies<sup>(2)</sup> |  |  |
| **Shareholders' equity** |  |  |
| Preferred shares, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding |  |  |
| Common shares, $0.001 par value, 700,000,000 shares authorized, 75,917,730 shares issued and outstanding<sup>(3)</sup> | 76 | 76 |
| Capital in excess of par value | 3129954 | 3129954 |
| Accumulated earnings (deficit) | (1624995) | (1626574) |
| &nbsp;&nbsp;&nbsp;**Total shareholders' equity** | 1505035 | 1503456 |
| &nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $1922640 | $2131236 |
| **Net asset value per common share at period end**<sup>(3)</sup> | $19.82 | $19.80 |

---

_________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;See Note 9 for a discussion of the Company's financing arrangements.

(2)&nbsp;&nbsp;&nbsp;&nbsp;See Note 10 for a discussion of the Company's commitments and contingencies.

(3)&nbsp;&nbsp;&nbsp;&nbsp;See Notes 1 and 3 for a discussion of the Company's reverse share split, which was completed on May 15, 2025. The outstanding shares and net asset value per common share reflect the reverse share split on a retroactive basis.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Unaudited Consolidated Statements of Operations**

**(in thousands, except share and per share amounts)**

    

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Investment income** |  |  |  |  |
| From non-controlled/unaffiliated investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $43258 | $42877 | $83466 | $104676 |
| &nbsp;&nbsp;&nbsp;Paid-in-kind interest income | 3260 | 3578 | 5753 | 4814 |
| &nbsp;&nbsp;&nbsp;Fee income | 653 | 1233 | 2035 | 1645 |
| &nbsp;&nbsp;&nbsp;Dividend income | 1339 | 690 | 3911 | 5040 |
| From non-controlled/affiliated investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 2129 | 872 | 3142 | 1032 |
| &nbsp;&nbsp;&nbsp;Paid-in-kind interest income | 379 | 421 | 1131 | 773 |
| &nbsp;&nbsp;&nbsp;Dividend income |  |  | 118 |  |
| From controlled/affiliated investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income |  | 615 |  | 1496 |
| &nbsp;&nbsp;&nbsp;Paid-in-kind interest income |  |  |  | 60 |
| Total investment income | 51018 | 50286 | 99556 | 119536 |
| **Operating expenses** |  |  |  |  |
| Management fees | 8662 | 8965 | 17532 | 18077 |
| Administrative services expenses | 1267 | 1535 | 2520 | 3070 |
| Share transfer agent fees | 802 | 919 | 1595 | 1838 |
| Accounting and administrative fees | 156 | 179 | 334 | 304 |
| Interest expense<sup>(1)</sup> | 8413 | 9040 | 17494 | 18124 |
| Trustees' fees | 195 | 164 | 359 | 328 |
| Listing advisory fees | 1570 |  | 1570 |  |
| Other general and administrative expenses | 2521 | 1227 | 3594 | 2325 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 23586 | 22029 | 44998 | 44066 |
| &nbsp;&nbsp;Less: Management fee offset<sup>(2)</sup> |  | (3) |  | (3) |
| &nbsp;&nbsp;&nbsp;Net expenses | 23586 | 22026 | 44998 | 44063 |
| Net investment income before taxes | 27432 | 28260 | 54558 | 75473 |
| &nbsp;&nbsp;Federal and state taxes | 40 | 16 | 43 | 809 |
| &nbsp;&nbsp;&nbsp;Net investment income | 27392 | 28244 | 54515 | 74664 |
| **Realized and unrealized gain/loss** |  |  |  |  |
| Net realized gain (loss) on investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-controlled/unaffiliated | (14427) | 67848 | (19810) | 71967 |
| &nbsp;&nbsp;Non-controlled/affiliated | 90 |  | (3574) | 71 |
| &nbsp;&nbsp;Controlled/affiliated |  | (59747) |  | (59747) |
| Net change in realized gain (loss) on foreign currency | (63) |  | (87) |  |
| Net realized gain (loss) on swap contracts | (325) | 3900 | 84 | 6227 |
| Net realized gain (loss) on forward foreign currency exchange contracts | (1046) |  | (1046) |  |
| Net change in unrealized appreciation (depreciation) on investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-controlled/unaffiliated | 7869 | (72256) | 19570 | (93273) |
| &nbsp;&nbsp;&nbsp;Non-controlled/affiliated | (1068) | (1370) | 3338 | (528) |
| &nbsp;&nbsp;&nbsp;Controlled/affiliated |  | 74830 |  | 59992 |
| Net change in unrealized appreciation (depreciation) on swap contracts | 190 | 29 | (70) | 225 |
| Net change in unrealized appreciation (depreciation) on foreign currency | 26 | (4) | 26 | (13) |
| Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts | (428) |  | (305) |  |
| &nbsp;&nbsp;&nbsp;Total net realized and unrealized gain (loss) | (9182) | 13230 | (1874) | (15079) |
| **Net increase (decrease) in net assets resulting from operations** | $18210 | $41474 | $52641 | $59585 |
| **Per share information—basic and diluted** |  |  |  |  |
| Net increase (decrease) in net assets resulting from operations (Earnings per Share)<sup>(3)</sup> | $0.24 | $0.55 | $0.69 | $0.78 |
| Weighted average shares outstanding<sup>(3)</sup> | 75917730 | 75917730 | 75917730 | 75917730 |

---

________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;See Note 9 for a discussion of the Company's financing arrangements.

(2)&nbsp;&nbsp;&nbsp;&nbsp;See Note 4 for a discussion of the offset by FS/EIG Advisor, LLC, the Company's investment adviser, of certain management fees to which it was otherwise entitled during the applicable period.

(3)&nbsp;&nbsp;&nbsp;&nbsp;See Notes 1 and 3 for a discussion of the Company's reverse share split, which was completed on May 15, 2025. The weighted average shares used in the per share computation of the net increase (decrease) in net assets resulting from operations reflect the reverse share split on a retroactive basis.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Unaudited Consolidated Statements of Changes in Net Assets**

**(in thousands)**

    

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operations** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | $27392 | $28244 | $54515 | $74664 |
| &nbsp;&nbsp;Net realized gain (loss) on investments, foreign currency, swap contracts and forward foreign currency exchange contracts | (15771) | 12001 | (24433) | 18518 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 6801 | 1204 | 22908 | (33809) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on swap contracts | 190 | 29 | (70) | 225 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on foreign currency | 26 | (4) | 26 | (13) |
| &nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts | (428) |  | (305) |  |
| Net increase (decrease) in net assets resulting from operations | 18210 | 41474 | 52641 | 59585 |
| **Shareholder distributions**<sup>(1)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Distributions from net investment income | (47965) | (39447) | (51062) | (40996) |
| Net decrease in net assets resulting from shareholder distributions | (47965) | (39447) | (51062) | (40996) |
| Total increase (decrease) in net assets | (29755) | 2027 | 1579 | 18589 |
| Net assets at beginning of period | 1534790 | 1578617 | 1503456 | 1562055 |
| Net assets at end of period | $1505035 | $1580644 | $1505035 | $1580644 |

---

_________________________

(1)See Note 5 for a discussion of the sources of distributions paid by the Company.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Unaudited Consolidated Statements of Cash Flows**

**(in thousands)**

    

---

| | | |
|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Net increase (decrease) in net assets resulting from operations | $52641 | $59585 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of long-term investments | (540430) | (677656) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in-kind interest | (6884) | (5647) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales and repayments of long-term investments | 748680 | 520160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from sales (purchases) of short-term investments |  | 22865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized (gain) loss on investments | 23384 | (12291) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (appreciation) depreciation on investments | (22908) | 33809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (appreciation) depreciation on swap contracts | 70 | (225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (appreciation) depreciation on forward foreign currency exchange contracts | 305 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of discount | (5883) | (4549) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs and discount | 1028 | 1033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in receivable for investments sold and repaid | 11302 | 12240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in interest receivable | (1713) | (4199) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in dividends receivable | (1087) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in swap income receivable | 773 | (1040) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses and other assets | 112 | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in payable for investments purchased | (78852) | (11745) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in swap income payable | (483) | 299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in management fees payable | (10) | 546 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in administrative services expense payable | 473 | 952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in interest payable | (129) | (292) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in trustees' fees payable | (3) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in other accrued expenses and liabilities | 1831 | (646) |
| Net cash provided by (used in) operating activities | 182217 | (66741) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Shareholder distributions paid | (85397) | (68736) |
| &nbsp;&nbsp;Repayments under repurchase facility | (100000) |  |
| Net cash provided by (used in) financing activities | (185397) | (68736) |
| Total increase (decrease) in cash and cash equivalents, restricted cash and foreign currency | (3180) | (135477) |
| Cash and cash equivalents and restricted cash at beginning of period | 239036 | 492758 |
| Cash and cash equivalents, restricted cash and foreign currency at end of period<sup>(1)</sup> | $235856 | $357281 |
| **Supplemental disclosure** |  |  |
| &nbsp;&nbsp;&nbsp;Non-cash purchases of investments | $(78480) | $(71247) |
| &nbsp;&nbsp;&nbsp;Non-cash sales of investments | $78480 | $71247 |
| &nbsp;&nbsp;&nbsp;Federal and state taxes paid | $861 | $1261 |
| &nbsp;&nbsp;Interest paid | $16595 | $17383 |

---

_________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2025 and 2024, the company held cash and cash equivalents and foreign currency of $233,257 and $316,020, respectively, and restricted cash of $2,599 and $41,261, respectively. Restricted cash is the cash collateral required to be posted pursuant to the Company's derivative contracts.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Unaudited Consolidated Schedule of Investments**

**As of June 30, 2025**

**(in thousands, except share amounts)**

    

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Principal <br>Amount**<sup>(c)</sup>  | **Amortized <br>Cost** | **Fair <br>Value**<sup>(d)</sup>  |
| **Senior Secured Loans—First Lien—90.1%** | | | | | | | | |
| &nbsp;&nbsp;&nbsp;Accupac, LLC | (p) | Pharmaceuticals, Biotechnology & Life Sciences | S+700 (S+700 Max PIK) | 2.0% | 12/31/29 | $45340 | $44447 | $44603 |
| &nbsp;&nbsp;&nbsp;Accupac, LLC | (e)(p) | Pharmaceuticals, Biotechnology & Life Sciences | S+700 (S+700 Max PIK) | 2.0% | 12/31/29 | 3134 | 3134 | 3083 |
| &nbsp;&nbsp;&nbsp;Alegeus Technologies Holdings Corp. | (f)(p) | Health Care Equipment & Services | S+675 | 1.0% | 11/5/29 | 29775 | 29132 | 29105 |
| &nbsp;&nbsp;&nbsp;All Day AcquisitionCo, LLC | (p) | Consumer Services | S+650 | 1.5% | 4/30/30 | 31557 | 30906 | 30966 |
| &nbsp;&nbsp;&nbsp;All Day AcquisitionCo, LLC | (e)(p) | Consumer Services | S+650 | 1.5% | 4/30/30 | 3443 | 3443 | 3378 |
| &nbsp;&nbsp;&nbsp;American Auto Auction Group, LLC |  | Commercial & Professional Services | S+450 |  | 5/28/32 | 22943 | 22772 | 23082 |
| &nbsp;&nbsp;&nbsp;Ansira Partners, Inc. | (f)(p) | Media & Entertainment | S+675 | 1.5% | 7/1/29 | 35538 | 34672 | 33095 |
| &nbsp;&nbsp;&nbsp;Ansira Partners, Inc. | (e)(p) | Media & Entertainment | S+675 | 1.5% | 7/1/29 | 3927 | 3927 | 3657 |
| &nbsp;&nbsp;&nbsp;Applied Technical Services, LLC | (p) | Commercial & Professional Services | S+525 | 0.8% | 4/8/31 | 21493 | 21377 | 21278 |
| &nbsp;&nbsp;&nbsp;Applied Technical Services, LLC | (e)(p) | Commercial & Professional Services | S+525 | 0.8% | 4/8/31 | 3507 | 3502 | 3472 |
| &nbsp;&nbsp;&nbsp;APTIM Corp. | (f) | Commercial & Professional Services | S+750 |  | 5/23/29 | 27500 | 27500 | 27156 |
| &nbsp;&nbsp;&nbsp;Archer Acquisition, LLC | (f)(p) | Equity Real Estate Investment Trusts (REITs) | S+500 | 1.0% | 10/6/29 | 19212 | 19033 | 19044 |
| &nbsp;&nbsp;&nbsp;Array Midco, Corp. | (f)(j)(p) | Commercial & Professional Services | S+650 | 3.0% | 12/31/29 | 29265 | 28679 | 28241 |
| &nbsp;&nbsp;&nbsp;Array Midco, Corp. | (e)(j)(p) | Commercial & Professional Services | S+650 | 3.0% | 12/31/29 | 3359 | 3359 | 3241 |
| &nbsp;&nbsp;&nbsp;Brock Holdings III, LLC | (f)(j) | Capital Goods | S+575 | 0.5% | 5/2/30 | 8436 | 8291 | 8078 |
| &nbsp;&nbsp;&nbsp;CCS Acquisition, LLC | (f)(p) | Health Care Equipment & Services | S+550 | 1.0% | 12/30/30 | 31350 | 30849 | 31037 |
| &nbsp;&nbsp;&nbsp;CCS Acquisition, LLC | (e)(p) | Health Care Equipment & Services | S+550 | 1.0% | 12/30/30 | 8571 | 8571 | 8486 |
| &nbsp;&nbsp;&nbsp;CF Exedra Bidco Ltd. | (j)(p) | Consumer Services | SA+550 |  | 2/19/31 | £18800 | 24102 | 25795 |
| &nbsp;&nbsp;&nbsp;Chinos Intermediate 2, LLC |  | Consumer Discretionary Distribution & Retail | S+600 |  | 9/17/31 | $15960 | 15701 | 14292 |
| &nbsp;&nbsp;&nbsp;CircusTrix Holdings, LLC | (p) | Consumer Services | S+650 | 1.0% | 7/18/28 | 4988 | 4892 | 5087 |
| &nbsp;&nbsp;&nbsp;CircusTrix Holdings, LLC | (f)(p) | Consumer Services | S+650 | 1.0% | 7/18/28 | 23267 | 23167 | 23733 |
| &nbsp;&nbsp;&nbsp;CircusTrix Holdings, LLC | (e)(p) | Consumer Services | S+650 | 1.0% | 7/18/28 | 6344 | 6349 | 6458 |
| &nbsp;&nbsp;&nbsp;Claros Mortgage Trust, Inc. | (j) | Financial Services | S+450 | 0.5% | 8/9/26 | 9947 | 9350 | 9655 |
| &nbsp;&nbsp;&nbsp;Cop Village Green Acquisitions, Inc. | (p) | Real Estate Management & Development | S+475 | 1.0% | 9/25/30 | 12643 | 12417 | 12643 |
| &nbsp;&nbsp;&nbsp;Cop Village Green Acquisitions, Inc. | (e)(p) | Real Estate Management & Development | S+475 | 1.0% | 9/25/30 | 9762 | 9761 | 9761 |
| &nbsp;&nbsp;&nbsp;CPM Holdings, Inc. | (f) | Capital Goods | S+450 | 0.5% | 9/28/28 | 24625 | 24682 | 24154 |
| &nbsp;&nbsp;&nbsp;Delivery Hero Finco LLC | (j) | Consumer Services | S+500 | 0.5% | 12/12/29 | 24688 | 24623 | 24958 |
| &nbsp;&nbsp;&nbsp;Digicel International Finance Ltd. | (f) | Telecommunication Services | S+525, 2.3% PIK (2.3% Max PIK) | 0.5% | 5/25/27 | 20422 | 19913 | 20419 |
| &nbsp;&nbsp;&nbsp;Electrical Components International, Inc. | (f)(p) | Capital Goods | S+650 | 2.0% | 5/10/29 | 46926 | 46145 | 47395 |
| &nbsp;&nbsp;&nbsp;Electrical Components International, Inc. | (e)(p) | Capital Goods | S+650 | 2.0% | 5/10/29 | 2600 | 2600 | 2626 |
| &nbsp;&nbsp;&nbsp;First Brands Group, LLC |  | Automobiles & Components | S+500 | 1.0% | 3/30/27 | 14626 | 13336 | 13748 |
| &nbsp;&nbsp;&nbsp;First Brands Group, LLC | (f) | Automobiles & Components | S+500 | 1.0% | 3/30/27 | 13576 | 13517 | 12864 |
| &nbsp;&nbsp;&nbsp;Future Pak, LLC | (p) | Materials | S+600 | 2.0% | 3/21/30 | 31360 | 30767 | 30772 |
| &nbsp;&nbsp;&nbsp;Gen4 Dental Partners Opco, LLC | (f)(p) | Health Care Equipment & Services | S+550 | 1.0% | 5/13/30 | 23336 | 22872 | 21965 |
| &nbsp;&nbsp;&nbsp;Gen4 Dental Partners Opco, LLC | (e)(p) | Health Care Equipment & Services | S+550 | 1.0% | 5/13/30 | 7857 | 7826 | 7396 |

---

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Unaudited Consolidated Schedule of Investments (continued)**

**As of June 30, 2025**

**(in thousands, except share amounts)**

    

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Principal <br>Amount**<sup>(c)</sup>  | **Amortized <br>Cost** | **Fair <br>Value**<sup>(d)</sup>  |
| &nbsp;&nbsp;&nbsp;HMN Acquirer Corp. | (p) | Media & Entertainment | S+475 | 1.0% | 11/5/31 | $15662 | $15467 | $15486 |
| &nbsp;&nbsp;&nbsp;HMN Acquirer Corp. | (e)(p) | Media & Entertainment | S+475 | 1.0% | 11/5/31 | 9259 | 9259 | 9155 |
| &nbsp;&nbsp;&nbsp;IXS Holdings, Inc. | (o) | Materials | S+425 | 0.8% | 3/5/27 | 23689 | 23186 | 23135 |
| &nbsp;&nbsp;&nbsp;LABL, Inc. | (f) | Commercial & Professional Services | S+500 | 0.5% | 10/30/28 | 24484 | 23949 | 22142 |
| &nbsp;&nbsp;&nbsp;LaserShip, Inc. |  | Transportation | S+625 | 0.8% | 1/2/29 | 24792 | 24981 | 24582 |
| &nbsp;&nbsp;&nbsp;LR Orion Bidco Ltd. | (j)(p) | Software & Services | S+550 |  | 11/22/31 | 36290 | 36554 | 36699 |
| &nbsp;&nbsp;&nbsp;LR Orion Bidco Ltd. | (e)(j)(p) | Software & Services | SA+300 |  | 5/22/31 | £3468 | 4343 | 4343 |
| &nbsp;&nbsp;&nbsp;LR Orion Bidco Ltd. | (e)(j)(p) | Software & Services | S+550 |  | 11/22/31 | $4839 | 4875 | 4893 |
| &nbsp;&nbsp;&nbsp;LSCS Holdings, Inc. |  | Health Care Equipment & Services | S+450 |  | 3/4/32 | 11596 | 11540 | 11400 |
| &nbsp;&nbsp;&nbsp;LTC Consulting Services, LLC | (p) | Health Care Equipment & Services | S+475 | 1.0% | 5/1/31 | 23485 | 23241 | 23279 |
| &nbsp;&nbsp;&nbsp;LTC Consulting Services, LLC | (e)(p) | Health Care Equipment & Services | S+475 | 1.0% | 5/1/31 | 1515 | 1515 | 1502 |
| &nbsp;&nbsp;&nbsp;M2S Group Intermediate Holdings, Inc. |  | Materials | S+475 | 0.5% | 8/25/31 | 28621 | 26788 | 27780 |
| &nbsp;&nbsp;&nbsp;Magnera Corp. | (j) | Materials | S+425 |  | 11/4/31 | 9950 | 9892 | 9788 |
| &nbsp;&nbsp;&nbsp;Mannington Mills, Inc. |  | Capital Goods | S+475 |  | 3/25/32 | 42678 | 42267 | 42091 |
| &nbsp;&nbsp;&nbsp;Management Health Systems, LLC | (p) | Health Care Equipment & Services | S+625 | 1.0% | 12/31/27 | 26500 | 26248 | 26235 |
| &nbsp;&nbsp;&nbsp;NES Hercules Class B Member, LLC | (p) | Energy | S+178 |  | 1/31/28 | 23361 | 22042 | 21843 |
| &nbsp;&nbsp;&nbsp;New WPCC Parent, LLC | (f)(p)(t) | Health Care Equipment & Services | S+950 | 2.0% | 5/9/30 | 6429 | 6429 | 6429 |
| &nbsp;&nbsp;&nbsp;Olibre Borrower, LLC | (p) | Consumer Durables & Apparel | S+575 | 1.0% | 1/3/30 | 39800 | 39077 | 39054 |
| &nbsp;&nbsp;&nbsp;OmniMax International, LLC | (p) | Capital Goods | S+575 | 1.0% | 12/6/30 | 39900 | 39262 | 39202 |
| &nbsp;&nbsp;&nbsp;Onbe, Inc. | (f)(p) | Financial Services | S+550 | 1.0% | 7/25/31 | 37810 | 37130 | 37101 |
| &nbsp;&nbsp;&nbsp;Plainfield Renewable Energy Holdings LLC | (l)(n)(p) | Energy | 6.0%, 9.5% PIK (9.5% Max PIK) |  | 8/22/25 | 16599 | 11238 | 4020 |
| &nbsp;&nbsp;&nbsp;Plainfield Renewable Energy Holdings LLC | (l)(n)(p) | Energy | 10.0% PIK (10.0% Max PIK) |  | 8/22/25 | 4880 | 3827 |  |
| &nbsp;&nbsp;&nbsp;Plainfield Renewable Energy Holdings LLC, Letter of Credit | (e)(p) | Energy | 10.0% |  | 8/22/25 | 2344 | 2344 |  |
| &nbsp;&nbsp;&nbsp;Pretium PKG Holdings, Inc. | (f) | Materials | S+375, 1.3% PIK (1.3% Max PIK) | 1.0% | 10/2/28 | 33177 | 32780 | 33194 |
| &nbsp;&nbsp;&nbsp;Project Granite Buyer, Inc. | (f)(p) | Insurance | S+575 | 0.8% | 12/31/31 | 15970 | 15600 | 15670 |
| &nbsp;&nbsp;&nbsp;Project Granite Buyer, Inc. | (e)(p) | Insurance | S+575 | 0.8% | 12/31/31 | 1480 | 1480 | 1452 |
| &nbsp;&nbsp;&nbsp;Project Granite Buyer, Inc. | (e)(p) | Insurance | S+575 | 0.8% | 12/31/30 | 2470 | 2470 | 2427 |
| &nbsp;&nbsp;&nbsp;RealTruck Group, Inc | (f) | Automobiles & Components | S+375 | 0.8% | 1/31/28 | 24564 | 23972 | 22080 |
| &nbsp;&nbsp;&nbsp;Recovery Solutions Parent, LLC | (p)(t) | Health Care Equipment & Services | S+750 (S+750 Max PIK) | 2.0% | 1/27/30 | 9478 | 9478 | 9478 |
| &nbsp;&nbsp;&nbsp;Revlon Intermediate Holdings IV LLC | (f) | Household & Personal Products | S+688 | 1.0% | 5/2/28 | 15000 | 15030 | 14728 |
| &nbsp;&nbsp;&nbsp;RPC TopCo Inc. | (p) | Consumer Durables & Apparel | S+475 | 1.0% | 8/30/31 | 21199 | 20864 | 20960 |
| &nbsp;&nbsp;&nbsp;RPC TopCo Inc. | (e)(p) | Consumer Durables & Apparel | S+475 | 1.0% | 8/30/31 | 3030 | 3030 | 2996 |
| &nbsp;&nbsp;&nbsp;Speedway Buyer, Inc. | (f)(p) | Commercial & Professional Services | S+525 | 0.8% | 1/27/32 | 21370 | 21777 | 21264 |
| &nbsp;&nbsp;&nbsp;Speedway Buyer, Inc. | (p) | Commercial & Professional Services | S+525 | 0.8% | 1/27/32 | 689 | 680 | 686 |
| &nbsp;&nbsp;&nbsp;Speedway Buyer, Inc. | (e)(p) | Commercial & Professional Services | S+525 | 0.8% | 1/27/32 | 5055 | 5055 | 5030 |
| &nbsp;&nbsp;&nbsp;Stryten Energy Resources LLC | (p) | Capital Goods | S+550 | 1.0% | 12/18/29 | 32588 | 31977 | 31976 |

---

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Unaudited Consolidated Schedule of Investments (continued)**

**As of June 30, 2025**

**(in thousands, except share amounts)**

    

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Principal <br>Amount**<sup>(c)</sup>  | **Amortized <br>Cost** | **Fair <br>Value**<sup>(d)</sup>  |
| &nbsp;&nbsp;&nbsp;Titan Purchaser, Inc. |  | Materials | S+600 | 1.0% | 3/1/30 | $12829 | $12743 | $12877 |
| &nbsp;&nbsp;&nbsp;TKC Holdings, Inc. | (f) | Consumer Staples Distribution & Retail | S+500 | 1.0% | 5/15/28 | 23968 | 23206 | 24048 |
| &nbsp;&nbsp;&nbsp;Trimlight Inc. | (p) | Consumer Discretionary Distribution & Retail | S+600 | 1.5% | 5/6/30 | 26842 | 26185 | 26272 |
| &nbsp;&nbsp;&nbsp;Trimlight Inc. | (e)(p) | Consumer Discretionary Distribution & Retail | S+600 | 1.5% | 5/6/30 | 3158 | 3158 | 3091 |
| &nbsp;&nbsp;&nbsp;TruGreen, LP | (f) | Commercial & Professional Services | S+400 | 0.8% | 11/2/27 | 24525 | 23598 | 23330 |
| &nbsp;&nbsp;&nbsp;United Natural Foods, Inc. | (f)(j) | Consumer Staples Distribution & Retail | S+475 |  | 5/1/31 | 2524 | 2480 | 2550 |
| &nbsp;&nbsp;&nbsp;Weber-Stephen Products LLC | (f) | Consumer Durables & Apparel | S+325 | 0.8% | 10/30/27 | 25870 | 24255 | 25733 |
| &nbsp;&nbsp;&nbsp;WildBrain Ltd. | (f)(j)(p) | Media & Entertainment | S+600 | 1.0% | 7/23/29 | 31012 | 30486 | 30741 |
| &nbsp;&nbsp;&nbsp;WildBrain Ltd. | (j)(p) | Media & Entertainment | S+600 | 1.0% | 7/23/29 | 675 | 609 | 669 |
| &nbsp;&nbsp;&nbsp;WildBrain Ltd. | (e)(j)(p) | Media & Entertainment | S+600 | 1.0% | 7/23/29 | 2699 | 2699 | 2675 |
| &nbsp;&nbsp;&nbsp;WMK, LLC | (f)(p) | Consumer Discretionary Distribution & Retail | S+650 | 3.0% | 1/25/28 | 31632 | 30832 | 30801 |
| &nbsp;&nbsp;&nbsp;WMK, LLC | (e)(p) | Consumer Discretionary Distribution & Retail | S+650 | 3.0% | 1/25/28 | 2333 | 2333 | 2272 |
| &nbsp;&nbsp;&nbsp;Wok Holdings, Inc. |  | Consumer Services | S+625 |  | 9/3/29 | 22321 | 21496 | 19635 |
| **Total Senior Secured Loans—First Lien** |  |  |  |  |  |  | 1469341 | 1451517 |
| &nbsp;&nbsp;&nbsp;Unfunded Loan Commitments |  |  |  |  |  |  | (95033) | (95033) |
| **Net Senior Secured Loans—First Lien** |  |  |  |  |  |  | 1374308 | 1356484 |
| **Senior Secured Loans—Second Lien—3.4%** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;MBS Services Holdings, LLC | (p) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) |  | 9/20/30 | 34420 | 33571 | 30892 |
| &nbsp;&nbsp;&nbsp;Tenrgys, LLC | (f)(p) | Energy | S+750 (S+950 Max PIK) | 1.0% | 3/17/27 | 20537 | 20537 | 19587 |
| **Total Senior Secured Loans—Second Lien** |  |  |  |  |  |  | 54108 | 50479 |
| **Senior Secured Bonds—4.2%** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Full House Resorts, Inc. | (f)(g) | Consumer Services | 8.3% |  | 2/15/28 | 25742 | 24059 | 25031 |
| &nbsp;&nbsp;&nbsp;Guitar Center, Inc. | (f)(g) | Consumer Discretionary Distribution & Retail | 8.5% |  | 1/15/26 | 23568 | 22833 | 18977 |
| &nbsp;&nbsp;&nbsp;ST EIP Holdings, Inc. | (f)(p) | Energy | 6.3% |  | 1/10/30 | 10026 | 9711 | 9212 |
| &nbsp;&nbsp;&nbsp;Universal Entertainment Corp. | (g)(j) | Consumer Durables & Apparel | 9.9% |  | 8/1/29 | 9625 | 9545 | 9414 |
| **Total Senior Secured Bonds** |  |  |  |  |  |  | 66148 | 62634 |
| **Unsecured Debt—2.7%** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Leia Acquisition Ltd. (fka AirSwift Holdings, Ltd.) | (p) | Commercial & Professional Services | 10.0% PIK (10.0% Max PIK) |  | 7/1/29 | 385 | 385 | 385 |
| &nbsp;&nbsp;&nbsp;Pioneer Midco, LLC | (f)(p) | Consumer Services | 11.6% PIK (11.6% Max PIK) |  | 11/18/30 | 40647 | 40662 | 40850 |
| **Total Unsecured Debt** |  |  |  |  |  |  | 41047 | 41235 |

---

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Unaudited Consolidated Schedule of Investments (continued)**

**As of June 30, 2025**

**(in thousands, except share amounts)**

    

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Principal**<br>**Amount**<sup>(c)</sup> | **Amortized Cost** | **Fair <br>Value**<sup>(d)</sup> |
| **Asset Based Finance—2.8%** | | | | | | | | |
| &nbsp;&nbsp;Bridge Street CLO IV Ltd., Subordinated Notes | (g)(j)(p)(q)(t) | Financial Services | 16.7% |  | 4/20/37 | $23700 | $23583 | $18438 |
| &nbsp;&nbsp;Bridge Street CLO V Ltd., Subordinated Notes | (g)(j)(p)(q)(t) | Financial Services | 18.2% |  | 4/20/38 | 19500 | 17531 | 18318 |
| &nbsp;&nbsp;Bridge Street Warehouse CLO VI Ltd. | (j)(p)(r)(t) | Financial Services | 6.2% |  | 8/1/25 | 5000 | 5155 | 5155 |
| **Total Asset Based Finance** |  |  |  |  |  |  | 46269 | 41911 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Number of Shares/Units** | **Cost** | **Fair <br>Value**<sup>(d)</sup> |
| **Equity/Other—6.2%**<sup>(k)</sup> | | | | | | | | |
| &nbsp;&nbsp;&nbsp;Diversified Energy Company, PLC, Common Equity | (m)(p)(s) | Energy |  |  |  | 3682450 | 44005 | 55016 |
| &nbsp;&nbsp;&nbsp;Global Jet Capital Holdings, LP, Preferred Equity | (n)(p) | Commercial & Professional Services |  |  |  | 17183 | 9806 | 7968 |
| &nbsp;&nbsp;&nbsp;Harvest Oil & Gas Corp., Common Equity | (n)(t) | Energy |  |  |  | 135062 | 14418 | 389 |
| &nbsp;&nbsp;&nbsp;MBS Services Holdings, LLC, A-3 Units | (m)(n)(p) | Commercial & Professional Services |  |  |  | 522382 | 522 | 131 |
| &nbsp;&nbsp;&nbsp;New WPCC Parent, LLC, Common Equity | (f)(n)(p)(t) | Health Care Equipment & Services |  |  |  | 250464 |  |  |
| &nbsp;&nbsp;&nbsp;New WPCC Parent, LLC, Preferred Equity | (p)(t) | Health Care Equipment & Services | 13.0% PIK (13.0% Max PIK) |  |  | 3165 | 2463 | 2440 |
| &nbsp;&nbsp;&nbsp;Recovery Solutions Parent, LLC, Common Equity | (n)(p)(t) | Health Care Equipment & Services |  |  |  | 519979 | 11700 | 12053 |
| &nbsp;&nbsp;&nbsp;Telpico, LLC, Common Equity | (m)(n)(p)(t) | Energy |  |  |  | 50 |  |  |
| &nbsp;&nbsp;&nbsp;Tenrgys, LLC, Common Equity | (m)(n)(p) | Energy |  |  |  | 50 | 7571 | 133 |
| &nbsp;&nbsp;&nbsp;USA Compression Partners, LP, Preferred Equity | (f)(j)(p) | Energy | 9.8% |  | 4/3/28 | 12694 | 12557 | 15805 |
| **Total Equity/Other** |  |  |  |  |  |  | 103042 | 93935 |
| **TOTAL INVESTMENTS—109.4%** |  |  |  |  |  |  | $1684922 | 1646678 |
| **Cash and Cash Equivalents and Foreign Currency—15.5%** | (h) |  |  |  |  |  |  | 233257 |
| **Liabilities in Excess of Other Assets—(24.9%)** | (i) |  |  |  |  |  |  | (374900) |
| **NET ASSETS—100.0%** |  |  |  |  |  |  |  | $1505035 |

---

**Forward Foreign Currency Exchange Contracts**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Contract Settlement Date** | **Currency and Amount to be Received** | **Currency and Amount to be Received** | **Currency and Amount to be Delivered** | **Currency and Amount to be Delivered** | **Unrealized Appreciation** | **Unrealized Depreciation** |
| Nomura Global Financial Products Inc. | 7/29/25 | USD | 25524 | GBP | 18600 | $– $| 305 |

---

__________________

USD - U.S. Dollar.

GBP - Pound Sterling.

(a)&nbsp;&nbsp;&nbsp;&nbsp;Security may be an obligation of one or more entities affiliated with the named company.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Certain variable rate securities in the Company's portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of June 30, 2025, the three-month Sterling Overnight Index Average, or SONIA, or SA was 4.10%, the one-month and three-month Secured Overnight Financing Rate, or SOFR, or S, was 4.32% and 4.29%, respectively, and the Overnight Bank Funding Rate, or OBFR, was 4.33%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and basis point spread. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment. Variable rate securities with no floor rate use the respective benchmark rate in all cases.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Unaudited Consolidated Schedule of Investments (continued)**

**As of June 30, 2025**

**(in thousands, except share amounts)**

    

(c)&nbsp;&nbsp;&nbsp;&nbsp;Denominated in U.S. dollars, unless otherwise noted.

(d)&nbsp;&nbsp;&nbsp;&nbsp;See Note 8 for additional information regarding the fair value of the Company's financial instruments.

(e)&nbsp;&nbsp;&nbsp;&nbsp;Security is an unfunded commitment. The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual rate received upon funding.

(f)&nbsp;&nbsp;&nbsp;&nbsp;Security or portion thereof held within FSSL Finance BB AssetCo LLC, a wholly-owned subsidiary of the Company, and is pledged as collateral supporting the obligations outstanding under the repurchase facility with Barclays Bank PLC (see Note 9).

(g)&nbsp;&nbsp;&nbsp;&nbsp;Exempt from registration under Rule 144A of the Securities Act of 1933, as amended. Such securities may be deemed liquid by the investment adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. As of June 30, 2025, the total market value of Rule 144A securities amounted to $90,178, which represented approximately 6.0% of net assets.

(h)&nbsp;&nbsp;&nbsp;&nbsp;Includes $23,507 held in Allspring Government Money Market Fund with a 7-day yield of 4.3% as of June 30, 2025.

(i)&nbsp;&nbsp;&nbsp;&nbsp;Includes the effect of swap contracts and forward foreign currency exchange contracts.

(j)&nbsp;&nbsp;&nbsp;&nbsp;The investment is not a qualifying asset under the Investment Company Act of 1940, as amended, or the 1940 Act. A business development company may not acquire any asset other than a qualifying asset, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the business development company's total assets. As of June 30, 2025, 86.6% of the Company's total assets represented qualifying assets.

(k)&nbsp;&nbsp;&nbsp;&nbsp;Listed investments may be treated as debt for U.S. generally accepted accounting principles, or GAAP, or tax purposes.

(l)&nbsp;&nbsp;&nbsp;&nbsp;Security was on non-accrual status as of June 30, 2025.

(m)&nbsp;&nbsp;&nbsp;&nbsp;Security held within FSEP Investments, Inc., a wholly-owned subsidiary of the Company.

(n)&nbsp;&nbsp;&nbsp;&nbsp;Security is non-income producing.

(o)&nbsp;&nbsp;&nbsp;&nbsp;Security or portion thereof unsettled as of June 30, 2025.

(p)&nbsp;&nbsp;&nbsp;&nbsp;Security is classified as Level 3 in the Company's fair value hierarchy (see Note 8).

(q)&nbsp;&nbsp;&nbsp;&nbsp;Securities of a collateralized loan obligation ("CLO") where an affiliate of the Company's investment adviser serves as collateral manager and administrator (see Note 4). The fair value of the investment is inclusive of the present value of future senior management fee and subordinated management fee cash flows from the collateral manager and administrator of the CLOs to the Company. The stated rate on these securities represents the annualized yield as of June 30, 2025.

(r)&nbsp;&nbsp;&nbsp;&nbsp;Security is a related party investment where an affiliate of the Company's investment adviser serves as collateral manager and administrator (see Note 4). The stated rate on these securities represents the annualized yield as of June 30, 2025.

(s)&nbsp;&nbsp;&nbsp;&nbsp;Restricted as to resale as of June 30, 2025 and will be registered during the third quarter of 2025. Total market value represents approximately 3.7% of net assets as of June 30, 2025.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Unaudited Consolidated Schedule of Investments (continued)**

**As of June 30, 2025**

**(in thousands, except share amounts)**

    

(t)&nbsp;&nbsp;&nbsp;&nbsp;Under the 1940 Act, the Company generally is deemed to be an "affiliated person" of a portfolio company if it owns 5% or more of the portfolio company's voting securities and generally is deemed to "control" a portfolio company if it owns more than 25% of the portfolio company's voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of June 30, 2025, the Company held investments in portfolio companies of which it is deemed to be an "affiliated person" but is not deemed to "control". The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person as of June 30, 2025:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company** | **Fair Value at**<br>**December 31, 2024** | **Gross Additions**<sup>(1)</sup> | **Gross Reductions**<sup>(2)</sup> | **Net Realized Gain (Loss)** | **Net Change in Unrealized Appreciation (Depreciation)** | **Fair Value at**<br>**June 30, 2025** | **Interest Income**<sup>(3)</sup> | **PIK Income**<sup>(3)</sup> | **Dividend Income**<sup>(3)</sup> |
| **Senior Secured Loans—First Lien** | | | | | | | | | |
| &nbsp;&nbsp;New WPCC Parent, LLC | $— | $6429 | $— | $— | $— | $6429 | $131 | $— | $— |
| &nbsp;&nbsp;Permian Production Holdings, LLC | 2879 | 57 | (2916) | 62 | (82) |  | 135 | 20 |  |
| &nbsp;&nbsp;Recovery Solutions Parent, LLC |  | 9501 | (23) |  |  | 9478 | 287 | 208 |  |
| **Asset Based Finance** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Bridge Street CLO IV Ltd., Subordinated Notes | 20679 |  | (362) |  | (1879) | 18438 | 1829 |  |  |
| &nbsp;&nbsp;Bridge Street Warehouse CLO V Ltd. | 25492 | 20748 | (46240) |  |  |  |  | 748 |  |
| &nbsp;&nbsp;Bridge Street CLO V Ltd., Subordinated Notes |  | 17538 | (7) |  | 787 | 18318 | 701 |  |  |
| &nbsp;&nbsp;Bridge Street Warehouse CLO VI Ltd. |  | 5155 |  |  |  | 5155 |  | 155 |  |
| **Equity/Other** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Diversified Energy Company, PLC, Common Equity<sup>(4)</sup> |  | 44005 | (44005) |  |  |  |  |  |  |
| &nbsp;&nbsp;Diversified Energy Company, PLC, Common Equity<sup>(5)</sup> |  | 5420 | (5453) | 33 |  |  |  |  | 118 |
| &nbsp;&nbsp;GWP Midstream Holdco, LLC, Common Equity | 2518 |  | (3017) | (3664) | 4163 |  |  |  |  |
| &nbsp;&nbsp;Harvest Oil & Gas Corp., Common Equity | 375 |  |  |  | 14 | 389 |  |  |  |
| &nbsp;&nbsp;New WPCC Parent, LLC, Common Equity |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;New WPCC Parent, LLC, Preferred Equity |  | 2463 |  |  | (23) | 2440 | 59 |  |  |
| &nbsp;&nbsp;Permian Production Holdings, LLC, Common Equity |  |  |  | (5) | 5 |  |  |  |  |
| &nbsp;&nbsp;Recovery Solutions Parent, LLC, Common Equity |  | 11700 |  |  | 353 | 12053 |  |  |  |
| &nbsp;&nbsp;Telpico, LLC, Common Equity |  |  |  |  |  |  |  |  |  |
|  | $51943 | $123016 | $(102023) | $(3574) | $3338 | $72700 | $3142 | $1131 | $118 |

---

_____________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Gross additions may include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and/or the movement of an existing portfolio company into this category from a different category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and/or the movement of an existing portfolio company out of this category into a different category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Interest, PIK and dividend income presented for the six months ended June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;During the six months ended June 30, 2025, this investment was deemed to be an "affiliated person" of the Company. The Company held this investment as of June 30, 2025 but it was not deemed to be an "affiliated person" of the portfolio company. Transfers out have been presented at amortized cost and are deemed to have occurred at the beginning of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;During the six months ended June 30, 2025, this investment was deemed to be an "affiliated person" of the Fund. 407,204 shares of this investment was sold during the six months ended June 30, 2025.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Consolidated Schedule of Investments**

**As of December 31, 2024**

**(in thousands, except share amounts)**

    

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Principal <br>Amount**<sup>(c)</sup>  | **Amortized <br>Cost** | **Fair <br>Value**<sup>(d)</sup>  |
| **Senior Secured Loans—First Lien—96.1%** | | | | | | | | |
| &nbsp;&nbsp;&nbsp;Accupac, LLC | (r) | Pharmaceuticals, Biotechnology & Life Sciences | S+700 | 2.0% | 12/31/29 | $41783 | $40822 | $40947 |
| &nbsp;&nbsp;&nbsp;Accupac, LLC | (e)(r) | Pharmaceuticals, Biotechnology & Life Sciences | S+700 | 2.0% | 12/31/29 | 6267 | 6267 | 6142 |
| &nbsp;&nbsp;&nbsp;Acrisure, LLC | (q) | Insurance | S+300 |  | 11/6/30 | 18849 | 18849 | 18904 |
| &nbsp;&nbsp;&nbsp;AI Aqua Merger Sub, Inc. | (f) | Capital Goods | S+350 | 0.5% | 7/31/28 | 19900 | 19775 | 19942 |
| &nbsp;&nbsp;&nbsp;Alegeus Technologies Holdings Corp. | (r) | Health Care Equipment & Services | S+675 | 1.0% | 11/5/29 | 30000 | 29281 | 29288 |
| &nbsp;&nbsp;&nbsp;American Auto Auction Group, LLC |  | Commercial & Professional Services | S+450 | 0.8% | 12/30/27 | 23739 | 23739 | 23927 |
| &nbsp;&nbsp;&nbsp;Amerit Fleet Solutions, Inc. | (r) | Commercial & Professional Services | S+525 | 0.8% | 12/17/31 | 30250 | 30032 | 30023 |
| &nbsp;&nbsp;&nbsp;Amerit Fleet Solutions, Inc. | (r) | Commercial & Professional Services | S+525 | 0.8% | 12/17/29 | 1507 | 1486 | 1496 |
| &nbsp;&nbsp;&nbsp;Amerit Fleet Solutions, Inc. | (e)(r) | Commercial & Professional Services | S+525 | 0.8% | 12/17/29 | 1243 | 1243 | 1234 |
| &nbsp;&nbsp;&nbsp;Ansira Partners, Inc. | (f)(r) | Media & Entertainment | S+675 | 1.5% | 7/1/29 | 35538 | 34601 | 34694 |
| &nbsp;&nbsp;&nbsp;Ansira Partners, Inc. | (e)(r) | Media & Entertainment | S+675 | 1.5% | 7/1/29 | 3927 | 3927 | 3834 |
| &nbsp;&nbsp;&nbsp;APTIM Corp. | (f) | Commercial & Professional Services | S+750 |  | 5/23/29 | 27500 | 27500 | 27431 |
| &nbsp;&nbsp;&nbsp;Archer Acquisition, LLC | (r) | Equity Real Estate Investment Trusts (REITs) | S+500 | 1.0% | 10/6/29 | 19309 | 19115 | 19115 |
| &nbsp;&nbsp;&nbsp;Array Midco, Corp. | (k)(r) | Commercial & Professional Services | S+650 | 3.0% | 12/31/29 | 25192 | 24613 | 24688 |
| &nbsp;&nbsp;&nbsp;Array Midco, Corp. | (e)(k)(r) | Commercial & Professional Services | S+650 | 3.0% | 12/31/29 | 7558 | 7558 | 7482 |
| &nbsp;&nbsp;&nbsp;Auris Luxembourg III S.a r.l | (k) | Health Care Equipment & Services | S+375 |  | 2/28/29 | 22802 | 22802 | 23102 |
| &nbsp;&nbsp;&nbsp;Aveanna Healthcare LLC | (f) | Health Care Equipment & Services | S+375 | 0.5% | 7/17/28 | 20695 | 18864 | 20556 |
| &nbsp;&nbsp;&nbsp;Brock Holdings III, LLC | (f)(k) | Capital Goods | S+600 | 0.5% | 5/2/30 | 8479 | 8322 | 8542 |
| &nbsp;&nbsp;&nbsp;CCS Acquisition, LLC | (r) | Health Care Equipment & Services | S+550 | 1.0% | 12/30/30 | 31429 | 30872 | 30800 |
| &nbsp;&nbsp;&nbsp;CCS Acquisition, LLC | (e)(r) | Health Care Equipment & Services | S+550 | 1.0% | 12/30/30 | 8571 | 8571 | 8400 |
| &nbsp;&nbsp;&nbsp;CCS-CMGC Holdings, Inc. | (f)(m)(o)(r) | Health Care Equipment & Services | S+693 | 2.0% | 6/9/25 | 13430 | 11849 | 6751 |
| &nbsp;&nbsp;&nbsp;CCS-CMGC Holdings, Inc. | (m)(o)(q) | Health Care Equipment & Services | S+725 | 2.0% | 6/9/25 | 3162 | 2551 | 3194 |
| &nbsp;&nbsp;&nbsp;CCS-CMGC Holdings, Inc. | (m)(o) | Health Care Equipment & Services | S+725 | 2.0% | 6/9/25 | 2752 | 2621 | 2780 |
| &nbsp;&nbsp;&nbsp;CCS-CMGC Holdings, Inc. | (f)(m)(o)(r) | Health Care Equipment & Services | S+750 |  | 10/1/25 | 14319 | 12645 | 3231 |
| &nbsp;&nbsp;&nbsp;Charlotte Buyer, Inc. | (f) | Health Care Equipment & Services | S+475 | 0.5% | 2/11/28 | 17710 | 17792 | 17840 |
| &nbsp;&nbsp;&nbsp;Chinos Intermediate 2, LLC |  | Consumer Discretionary Distribution & Retail | S+600 |  | 9/17/31 | 16000 | 15726 | 16240 |
| &nbsp;&nbsp;&nbsp;CircusTrix Holdings, LLC | (r) | Consumer Services | S+650 | 1.0% | 7/18/25 | 2140 | 2140 | 2167 |
| &nbsp;&nbsp;&nbsp;CircusTrix Holdings, LLC | (f)(r) | Consumer Services | S+650 | 1.0% | 7/18/28 | 20706 | 20705 | 20964 |
| &nbsp;&nbsp;&nbsp;CircusTrix Holdings, LLC | (r) | Consumer Services | S+650 | 1.0% | 7/18/28 | 1344 | 1344 | 1354 |
| &nbsp;&nbsp;&nbsp;CircusTrix Holdings, LLC | (e)(r) | Consumer Services | S+650 | 1.0% | 7/18/25 | 538 | 538 | 544 |
| &nbsp;&nbsp;&nbsp;Clear Channel Outdoor Holdings, Inc. | (f)(k) | Media & Entertainment | S+400 |  | 8/21/28 | 12500 | 12317 | 12599 |
| &nbsp;&nbsp;&nbsp;Cop Village Green Acquisitions, Inc. | (r) | Real Estate Management & Development | S+475 | 1.0% | 9/25/30 | 12707 | 12469 | 12453 |
| &nbsp;&nbsp;&nbsp;Cop Village Green Acquisitions, Inc. | (e)(r) | Real Estate Management & Development | S+475 | 1.0% | 9/25/30 | 3661 | 3661 | 3661 |

---

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Consolidated Schedule of Investments (continued)**

**As of December 31, 2024**

**(in thousands, except share amounts)**

    

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Principal <br>Amount**<sup>(c)</sup>  | **Amortized <br>Cost** | **Fair <br>Value**<sup>(d)</sup>  |
| &nbsp;&nbsp;&nbsp;Cop Village Green Acquisitions, Inc. | (e)(r) | Real Estate Management & Development | S+475 | 1.0% | 9/25/30 | $6101 | $6101 | $6101 |
| &nbsp;&nbsp;&nbsp;CPM Holdings, Inc. | (f) | Capital Goods | S+450 | 0.5% | 9/28/28 | 24750 | 24813 | 24066 |
| &nbsp;&nbsp;&nbsp;Crown SubSea Communications Holding, Inc. | (f) | Capital Goods | S+400 | 0.8% | 1/30/31 | 5970 | 5916 | 6074 |
| &nbsp;&nbsp;&nbsp;Delivery Hero Finco LLC | (k) | Consumer Services | S+500 | 0.5% | 12/12/29 | 24813 | 24742 | 24988 |
| &nbsp;&nbsp;&nbsp;Digicel International Finance Ltd. | (f) | Telecommunication Services | S+515, 1.5% PIK (1.5% Max PIK) | 0.5% | 5/25/27 | 20231 | 19614 | 19703 |
| &nbsp;&nbsp;&nbsp;Electrical Components International, Inc. | (f)(r) | Capital Goods | S+650, 0.0% PIK (2.0% Max PIK) | 2.0% | 5/10/29 | 47163 | 46308 | 47163 |
| &nbsp;&nbsp;&nbsp;Electrical Components International, Inc. | (e)(r) | Capital Goods | S+650, 0.0% PIK (2.0% Max PIK) | 2.0% | 5/10/29 | 2600 | 2600 | 2600 |
| &nbsp;&nbsp;&nbsp;Engineered Machinery Holdings, Inc. | (f) | Capital Goods | S+375 | 0.8% | 5/19/28 | 24669 | 24613 | 24893 |
| &nbsp;&nbsp;&nbsp;First Brands Group, LLC | (f) | Automobiles & Components | S+500 | 1.0% | 3/30/27 | 24649 | 24435 | 23212 |
| &nbsp;&nbsp;&nbsp;FLNG Liquefaction 2, LLC | (p)(r) | Energy | S+150 |  | 12/31/26 | 24931 | 23684 | 23684 |
| &nbsp;&nbsp;&nbsp;GasLog Ltd. | (k)(r) | Energy | 7.8% |  | 3/31/29 | 7523 | 7488 | 7420 |
| &nbsp;&nbsp;&nbsp;Gen4 Dental Partners Opco, LLC | (f)(r) | Health Care Equipment & Services | S+550 | 1.0% | 5/13/30 | 23454 | 22911 | 22750 |
| &nbsp;&nbsp;&nbsp;Gen4 Dental Partners Opco, LLC | (e)(r) | Health Care Equipment & Services | S+550 | 1.0% | 5/13/30 | 9429 | 9429 | 9146 |
| &nbsp;&nbsp;&nbsp;Gold Rush Amusements, Inc. | (f)(r) | Consumer Services | S+750 | 2.0% | 10/12/28 | 30365 | 29863 | 30365 |
| &nbsp;&nbsp;&nbsp;Guardian US Holdco, LLC | (f) | Software & Services | S+350 | 0.5% | 1/31/30 | 21683 | 21709 | 21755 |
| &nbsp;&nbsp;&nbsp;HMN Acquirer Corp. | (r) | Media & Entertainment | S+475 | 1.0% | 11/5/31 | 15741 | 15537 | 15505 |
| &nbsp;&nbsp;&nbsp;HMN Acquirer Corp. | (e)(r) | Media & Entertainment | S+475 | 1.0% | 11/5/31 | 9259 | 9259 | 9120 |
| &nbsp;&nbsp;&nbsp;IXS Holdings, Inc. | (q) | Materials | S+425 | 0.8% | 3/5/27 | 19850 | 19341 | 19219 |
| &nbsp;&nbsp;&nbsp;Knowlton Development Corporation Inc. | (q) | Household & Personal Products | S+400 |  | 8/15/28 | 35365 | 35365 | 35647 |
| &nbsp;&nbsp;&nbsp;LABL, Inc. | (f) | Commercial & Professional Services | S+500 | 0.5% | 10/29/28 | 24610 | 24014 | 23857 |
| &nbsp;&nbsp;&nbsp;Learning Care Group No. 2 Inc. | (f) | Consumer Services | S+400 | 0.5% | 8/11/28 | 21731 | 21844 | 21975 |
| &nbsp;&nbsp;&nbsp;Level 3 Financing, Inc. | (f)(k) | Telecommunication Services | S+656 | 2.0% | 4/15/29 | 19291 | 18912 | 19703 |
| &nbsp;&nbsp;&nbsp;LR Orion Bidco Ltd. | (k)(r) | Software & Services | S+550 |  | 11/22/31 | 36290 | 36562 | 35927 |
| &nbsp;&nbsp;&nbsp;LR Orion Bidco Ltd. | (e)(k)(r) | Software & Services | SA+300 |  | 5/22/31 | £3468 | 4342 | 4342 |
| &nbsp;&nbsp;&nbsp;LR Orion Bidco Ltd. | (e)(k)(r) | Software & Services | S+550 |  | 11/22/31 | $4839 | 4839 | 4815 |
| &nbsp;&nbsp;&nbsp;M2S Group Intermediate Holdings, Inc. |  | Materials | S+475 | 0.5% | 8/25/31 | 29310 | 27355 | 28358 |
| &nbsp;&nbsp;&nbsp;Magnera Corp. | (k) | Materials | S+425 |  | 11/4/31 | 10000 | 9938 | 10035 |
| &nbsp;&nbsp;&nbsp;Mavis Tire Express Services TopCo, L.P. | (f) | Consumer Discretionary Distribution & Retail | S+350 | 0.8% | 5/4/28 | 12232 | 12254 | 12329 |
| &nbsp;&nbsp;&nbsp;MedImpact Healthcare Systems, Inc. | (f) | Health Care Equipment & Services | S+725 |  | 3/31/28 | 24367 | 22096 | 24601 |
| &nbsp;&nbsp;&nbsp;NES Hercules Class B Member, LLC | (p)(r) | Energy | S+178 |  | 1/31/28 | 23546 | 21662 | 21662 |
| &nbsp;&nbsp;&nbsp;OmniMax International, LLC | (r) | Capital Goods | S+575 | 1.0% | 12/6/30 | 30561 | 29879 | 29950 |
| &nbsp;&nbsp;&nbsp;OmniMax International, LLC | (e)(r) | Capital Goods | S+575 | 1.0% | 12/6/30 | 9439 | 9439 | 9250 |
| &nbsp;&nbsp;&nbsp;Onbe, Inc. | (f)(r) | Financial Services | S+550 | 1.0% | 7/25/31 | 38000 | 37280 | 37288 |
| &nbsp;&nbsp;&nbsp;Peloton Interactive, Inc. | (f)(k) | Consumer Durables & Apparel | S+600 |  | 5/30/29 | 24875 | 24649 | 25507 |
| &nbsp;&nbsp;&nbsp;Permian Production Holdings, LLC | (r)(u) | Energy | 7.0%, 2.0% PIK (2.0% Max PIK) |  | 11/23/25 | 2897 | 2797 | 2879 |
| &nbsp;&nbsp;&nbsp;Plainfield Renewable Energy Holdings LLC | (m)(o)(r) | Energy | 6.0%, 9.5% PIK (9.5% Max PIK) |  | 8/22/25 | 15384 | 11237 | 5050 |

---

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Consolidated Schedule of Investments (continued)**

**As of December 31, 2024**

**(in thousands, except share amounts)**

    

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Principal <br>Amount**<sup>(c)</sup>  | **Amortized <br>Cost** | **Fair <br>Value**<sup>(d)</sup>  |
| &nbsp;&nbsp;&nbsp;Plainfield Renewable Energy Holdings LLC | (m)(o)(r) | Energy | 10.0% PIK (10.0% Max PIK) |  | 8/22/25 | $4648 | $3827 | $— |
| &nbsp;&nbsp;&nbsp;Plainfield Renewable Energy Holdings LLC, Letter of Credit | (e)(r) | Energy | 10.0% |  | 8/22/25 | 2344 | 2344 |  |
| &nbsp;&nbsp;&nbsp;PODS, LLC | (f) | Transportation | S+300 | 0.8% | 3/31/28 | 19846 | 18905 | 18624 |
| &nbsp;&nbsp;&nbsp;Pretium PKG Holdings, Inc. | (f) | Materials | S+250 2.5% PIK (2.5% Max PIK) | 1.0% | 10/2/28 | 32965 | 32524 | 34077 |
| &nbsp;&nbsp;&nbsp;Proampac PG Borrower LLC | (f) | Materials | S+400 | 0.8% | 9/15/28 | 22770 | 22781 | 22870 |
| &nbsp;&nbsp;&nbsp;Project Granite Buyer, Inc. | (r) | Insurance | S+575 | 0.8% | 12/31/31 | 16050 | 15665 | 15729 |
| &nbsp;&nbsp;&nbsp;Project Granite Buyer, Inc. | (e)(r) | Insurance | S+575 | 0.8% | 12/31/31 | 1480 | 1480 | 1465 |
| &nbsp;&nbsp;&nbsp;Project Granite Buyer, Inc. | (e)(r) | Insurance | S+575 | 0.8% | 12/31/30 | 2470 | 2470 | 2421 |
| &nbsp;&nbsp;&nbsp;Realtruck Group, Inc. | (f) | Automobiles & Components | S+350 | 0.8% | 1/31/28 | 24692 | 24006 | 24003 |
| &nbsp;&nbsp;&nbsp;Revlon Intermediate Holdings IV LLC | (f) | Household & Personal Products | S+688 | 1.0% | 5/2/28 | 15000 | 15034 | 14912 |
| &nbsp;&nbsp;&nbsp;RPC TopCo Inc. | (r) | Consumer Durables & Apparel | S+500 | 1.0% | 8/30/31 | 21915 | 21553 | 21915 |
| &nbsp;&nbsp;&nbsp;RPC TopCo Inc. | (e)(r) | Consumer Durables & Apparel | S+550 | 1.0% | 8/30/31 | 3030 | 3030 | 3030 |
| &nbsp;&nbsp;&nbsp;Ryan, LLC | (f) | Commercial & Professional Services | S+350 | 0.5% | 11/14/30 | 8809 | 8828 | 8844 |
| &nbsp;&nbsp;&nbsp;SupplyOne, Inc. |  | Materials | S+375 |  | 4/19/31 | 8933 | 8932 | 9018 |
| &nbsp;&nbsp;&nbsp;TKC Holdings, Inc. | (f) | Consumer Staples Distribution & Retail | S+500 | 1.0% | 5/15/28 | 24195 | 23320 | 24513 |
| &nbsp;&nbsp;&nbsp;TruGreen, LP | (f) | Commercial & Professional Services | S+400 | 0.8% | 11/2/27 | 24653 | 23565 | 24068 |
| &nbsp;&nbsp;&nbsp;United Natural Foods, Inc. | (f)(k) | Consumer Staples Distribution & Retail | S+475 |  | 5/1/31 | 20895 | 20505 | 21276 |
| &nbsp;&nbsp;&nbsp;Weber-Stephen Products LLC | (f) | Consumer Durables & Apparel | S+325 | 0.8% | 10/30/27 | 26036 | 24144 | 25995 |
| &nbsp;&nbsp;&nbsp;WildBrain Ltd. | (k)(r) | Media & Entertainment | S+600 | 1.0% | 7/23/29 | 506 | 440 | 502 |
| &nbsp;&nbsp;&nbsp;WildBrain Ltd. | (f)(k)(r) | Media & Entertainment | S+600 | 1.0% | 7/23/29 | 31468 | 30887 | 31193 |
| &nbsp;&nbsp;&nbsp;WildBrain Ltd. | (e)(k)(r) | Media & Entertainment | S+600 | 1.0% | 7/23/29 | 2867 | 2867 | 2842 |
| &nbsp;&nbsp;&nbsp;WMK, LLC | (f)(r) | Consumer Discretionary Distribution & Retail | S+650 | 3.0% | 1/25/28 | 31698 | 30780 | 31104 |
| &nbsp;&nbsp;&nbsp;WMK, LLC | (e)(r) | Consumer Discretionary Distribution & Retail | S+650 | 3.0% | 1/25/28 | 2750 | 2750 | 2698 |
| &nbsp;&nbsp;&nbsp;Wok Holdings, Inc. | (q) | Consumer Services | S+625 |  | 9/1/29 | 22440 | 21543 | 21703 |
| **Total Senior Secured Loans—First Lien** |  |  |  |  |  |  | 1549604 | 1538066 |
| &nbsp;&nbsp;&nbsp;Unfunded Loan Commitments |  |  |  |  |  |  | (92715) | (92715) |
| **Net Senior Secured Loans—First Lien** |  |  |  |  |  |  | 1456889 | 1445351 |
| **Senior Secured Loans—Second Lien—3.3%** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;MBS Services Holdings, LLC | (r) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) |  | 9/20/30 | 31996 | 31067 | 29116 |
| &nbsp;&nbsp;&nbsp;Tenrgys, LLC | (f)(r) | Energy | S+750 (S+950 Max PIK) | 1.0% | 3/17/27 | 20537 | 20537 | 20075 |
| **Total Senior Secured Loans—Second Lien** |  |  |  |  |  |  | 51604 | 49191 |
| **Senior Secured Bonds—6.9%** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allegiant Travel Co. | (k) | Transportation | 7.3% |  | 8/15/27 | 12271 | 11427 | 12347 |

---

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Consolidated Schedule of Investments (continued)**

**As of December 31, 2024**

**(in thousands, except share amounts)**

    

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Principal <br>Amount**<sup>(c)</sup>  | **Amortized <br>Cost** | **Fair <br>Value**<sup>(d)</sup>  |
| &nbsp;&nbsp;&nbsp;Full House Resorts, Inc. | (f) | Consumer Services | 8.3% |  | 2/15/28 | $25742 | $23793 | $25671 |
| &nbsp;&nbsp;&nbsp;Guitar Center, Inc. | (f) | Consumer Discretionary Distribution & Retail | 8.5% |  | 1/15/26 | 23568 | 22210 | 20160 |
| &nbsp;&nbsp;&nbsp;ST EIP Holdings Inc. | (f)(r) | Energy | 6.3% |  | 1/10/30 | 10143 | 9794 | 9192 |
| &nbsp;&nbsp;&nbsp;Universal Entertainment Corp. | (k) | Consumer Durables & Apparel | 9.9% |  | 8/1/29 | 9625 | 9538 | 9608 |
| &nbsp;&nbsp;&nbsp;Warren Resources, Inc. | (r) | Energy | 4.0% |  | 11/30/26 | 30745 | 27534 | 26748 |
| **Total Senior Secured Bonds** |  |  |  |  |  |  | 104296 | 103726 |
| **Unsecured Debt—2.6%** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Leia Acquisition Ltd. (fka AirSwift Holdings, Ltd.) | (r) | Commercial & Professional Services | 10.0% PIK (10.0% Max PIK) |  | 7/15/29 | 399 | 399 | 399 |
| &nbsp;&nbsp;&nbsp;Pioneer Midco, LLC | (f)(r) | Consumer Services | 11.6% PIK (11.6% Max PIK) |  | 11/18/30 | 38371 | 38386 | 38563 |
| **Total Unsecured Debt** |  |  |  |  |  |  | 38785 | 38962 |
| **Asset Based Finance—3.1%** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Bridge Street CLO IV Ltd., Subordinated Notes | (g)(k)(r)(s)(u) | Financial Services | 17.9% |  | 4/20/37 | 23700 | 23945 | 20679 |
| &nbsp;&nbsp;Bridge Street Warehouse CLO V Ltd. | (k)(r)(t)(u) | Financial Services | 1.8% |  | 8/1/25 | 25000 | 25492 | 25492 |
| **Total Asset Based Finance** |  |  |  |  |  |  | 49437 | 46171 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company**<sup>(a)</sup> | **Footnotes** | **Industry** | **Rate**<sup>(b)</sup> | **Floor**<sup>(b)</sup> | **Maturity** | **Number of**<br>**Shares/Units** | <br>**Cost** | **Fair <br>Value**<sup>(d)</sup> |
| **Equity/Other—10.6%**<sup>(l)</sup> | | | | | | | | |
| &nbsp;&nbsp;&nbsp;Arena Energy, LP, Contingent Value Rights | (r) | Energy |  |  |  | 126632117 | 351 | $269 |
| &nbsp;&nbsp;&nbsp;Ascent Resources Utica Holdings, LLC, Common Equity | (n)(o)(r) | Energy |  |  |  | 1486929 | 42169 | 42047 |
| &nbsp;&nbsp;&nbsp;Global Jet Capital Holdings, LP, Preferred Equity | (o)(r) | Commercial & Professional Services |  |  |  | 17183 | 9806 | 7066 |
| &nbsp;&nbsp;&nbsp;GWP Midstream Holdco, LLC, Common Equity | (n)(o)(r)(u) | Energy |  |  |  | 105785 | 6681 | 2518 |
| &nbsp;&nbsp;&nbsp;Harvest Oil & Gas Corp., Common Equity | (o)(u) | Energy |  |  |  | 135062 | 14418 | 375 |
| &nbsp;&nbsp;&nbsp;Maverick Natural Resources, LLC, Common Equity | (n)(r) | Energy |  |  |  | 503176 | 93044 | 72622 |
| &nbsp;&nbsp;&nbsp;MBS Services Holdings, LLC, A-3 Units | (n)(o)(r) | Commercial & Professional Services |  |  |  | 522382 | 522 | 669 |
| &nbsp;&nbsp;&nbsp;Permian Production Holdings, LLC, Common Equity | (n)(o)(r)(u) | Energy |  |  |  | 1968861 | 5 |  |
| &nbsp;&nbsp;&nbsp;Telpico, LLC, Common Equity | (n)(o)(r)(u) | Energy |  |  |  | 50 |  |  |
| &nbsp;&nbsp;&nbsp;Tenrgys, LLC, Common Equity | (n)(o)(r) | Energy |  |  |  | 50 | 7571 | 830 |
| &nbsp;&nbsp;&nbsp;USA Compression Partners, LP, Preferred Equity | (f)(k)(r) | Energy | 9.8% |  | 4/3/28 | 28561 | 28211 | 32840 |
| **Total Equity/Other** | **Total Equity/Other** | **Total Equity/Other** | **Total Equity/Other** | **Total Equity/Other** | **Total Equity/Other** | **Total Equity/Other** | 202778 | 159236 |
| **TOTAL INVESTMENTS—122.6%** | **TOTAL INVESTMENTS—122.6%** | **TOTAL INVESTMENTS—122.6%** | **TOTAL INVESTMENTS—122.6%** | **TOTAL INVESTMENTS—122.6%** | **TOTAL INVESTMENTS—122.6%** | **TOTAL INVESTMENTS—122.6%** | 1903789 | 1842637 |
| **Cash and Cash Equivalents—13.4%** | (i) |  |  |  |  |  |  | 202091 |
| **Liabilities in Excess of Other Assets—(36.0%)** | (j) |  |  |  |  |  |  | (541272) |
| **NET ASSETS—100.0%** | **NET ASSETS—100.0%** | **NET ASSETS—100.0%** | **NET ASSETS—100.0%** | **NET ASSETS—100.0%** | **NET ASSETS—100.0%** | **NET ASSETS—100.0%** | **NET ASSETS—100.0%** | $1503456 |

---

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Consolidated Schedule of Investments (continued)**

**As of December 31, 2024**

**(in thousands, except share amounts)**

    

**Total Return Swaps**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Pay/Receive**<sup>(h)</sup> | **Underlying Reference** | **Type** | **Number of Shares** | **Interest Rate**<sup>(b)</sup> | **Payment Frequency** | **Maturity** | **Notional Amount** | **Unrealized Appreciation (Depreciation)** |
| Nomura Global Financial Products Inc. | Receive | FS Credit Opportunities Corp. Common Stock | Equity | 2875868 | OBFR+1.15% | Monthly | 9/21/26 | $19613 | $— |
| BNP Paribas | Receive | Aretec Group, Inc. | Loan |  | S+350 | Monthly | 9/12/25 | 14244 | 11 |
|  | Receive | Clear Channel Outdoor Holdings, Inc. | Loan |  | S+400 | Monthly | 9/12/25 | 7500 | 128 |
|  | Receive | BCPE Empire Holdings, Inc. | Loan |  | S+350 | Monthly | 9/12/25 | 29750 | 2 |
|  | Receive | Charlotte Buyer, Inc. | Loan |  | S+475 | Monthly | 9/12/25 | 7443 | 39 |
|  | Receive | Pro Mach Group, Inc. | Loan |  | S+350 | Monthly | 9/12/25 | 24799 | (27) |
|  | Receive | Cirque Du Soleil Holding USA Newco, Inc. | Loan |  | S+375 | Monthly | 9/12/25 | 8303 | 21 |
|  | Receive | Allied Universal Holdco LLC | Loan |  | S+375 | Monthly | 9/12/25 | 22727 | (104) |
| **Total** | **Total** | **Total** | **Total** | **Total** | **Total** | **Total** | **Total** | **Total** | $70 |

---

__________________

(a)&nbsp;&nbsp;&nbsp;&nbsp;Security may be an obligation of one or more entities affiliated with the named company.

(b)&nbsp;&nbsp;&nbsp;&nbsp;Certain variable rate securities in the Company's portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of December 31, 2024, the three-month Sterling Overnight Index Average, or SONIA, or SA was 4.62%, the one-month and three-month Secured Overnight Financing Rate, or SOFR, or S, was 4.33% and 4.31%, respectively, and the Overnight Bank Funding Rate, or OBFR, was 4.33%. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and basis point spread. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment. Variable rate securities with no floor rate use the respective benchmark rate in all cases.

(c)&nbsp;&nbsp;&nbsp;&nbsp;Denominated in U.S. dollars, unless otherwise noted.

(d)&nbsp;&nbsp;&nbsp;&nbsp;See Note 8 for additional information regarding the fair value of the Company's financial instruments.

(e)&nbsp;&nbsp;&nbsp;&nbsp;Security is an unfunded commitment. The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual rate received upon funding.

(f)&nbsp;&nbsp;&nbsp;&nbsp;Security or portion thereof held within FSSL Finance BB AssetCo LLC, a wholly-owned subsidiary of the Company, and is pledged as collateral supporting the obligations outstanding under the repurchase facility with Barclays Bank PLC (see Note 9).

(g)&nbsp;&nbsp;&nbsp;&nbsp;Exempt from registration under Rule 144A of the Securities Act of 1933, as amended. Such securities may be deemed liquid by the investment adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. As of December 31, 2024, the total market value of Rule 144A securities amounted to $20,679, which represented approximately 1.4% of net assets.

(h)&nbsp;&nbsp;&nbsp;&nbsp;Receive represents that the Company receives payments for any positive net return and makes payments for any negative net return on the underlying reference. Pay represents that the Company receives payments for any negative net return and makes payments for any positive net return on the underlying reference.

(i)&nbsp;&nbsp;&nbsp;&nbsp;Includes cash equivalents held in the Allspring Government Money Market Fund with a cost and fair market value of $19,699 and a 7-day yield of 4.4% as of December 31, 2024.

(j)&nbsp;&nbsp;&nbsp;&nbsp;Includes the effect of swap contracts.

(k)&nbsp;&nbsp;&nbsp;&nbsp;The investment is not a qualifying asset under the Investment Company Act of 1940, as amended, or the 1940 Act. A business development company may not acquire any asset other than a qualifying asset, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the business development company's total assets. As of December 31, 2024, 83.0% of the Company's total assets represented qualifying assets.

(l)&nbsp;&nbsp;&nbsp;&nbsp;Listed investments may be treated as debt for U.S. generally accepted accounting principles, or GAAP, or tax purposes.

(m)&nbsp;&nbsp;&nbsp;&nbsp;Security was on non-accrual status as of December 31, 2024.

(n)&nbsp;&nbsp;&nbsp;&nbsp;Security held within FSEP Investments, Inc., a wholly-owned subsidiary of the Company.

(o)&nbsp;&nbsp;&nbsp;&nbsp;Security is non-income producing.

(p)&nbsp;&nbsp;&nbsp;&nbsp;Security or portion thereof held within Sustainable Infrastructure Investments, LLC, a wholly-owned subsidiary of the Company.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Consolidated Schedule of Investments (continued)**

**As of December 31, 2024**

**(in thousands, except share amounts)**

    

(q)&nbsp;&nbsp;&nbsp;&nbsp;Security or portion thereof unsettled as of December 31, 2024.

(r)&nbsp;&nbsp;&nbsp;&nbsp;Security is classified as Level 3 in the Company's fair value hierarchy (see Note 8).

(s) &nbsp;&nbsp;&nbsp;&nbsp;Securities of a collateralized loan obligation ("CLO") where an affiliate of the Company's investment adviser serves as collateral manager and administrator (see Note 4). The fair value of the investment is inclusive of the present value of future senior management fee and subordinated management fee cash flows from the collateral manager and administrator of the CLOs to the Company. The stated rate on these securities represents the annualized yield as of December 31, 2024.

(t)&nbsp;&nbsp;&nbsp;&nbsp;Security is a related party investment where an affiliate of the Company's investment adviser serves as collateral manager and administrator (see Note 4). The stated rate on these securities represents the annualized yield as of December 31, 2024.

(u)&nbsp;&nbsp;&nbsp;&nbsp;Under the 1940 Act, the Company generally is deemed to be an "affiliated person" of a portfolio company if it owns 5% or more of the portfolio company's voting securities and generally is deemed to "control" a portfolio company if it owns more than 25% of the portfolio company's voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of December 31, 2024, the Company held investments in portfolio companies of which it is deemed to be an "affiliated person" but is not deemed to "control". The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person as of December 31, 2024:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company** | **Fair Value at**<br>**December 31, 2023** | **Gross Additions**<sup>(1)</sup> | **Gross Reductions**<sup>(2)</sup> | **Net Realized Gain (Loss)** | **Net Change in Unrealized Appreciation (Depreciation)** | **Fair Value at**<br>**December 31, 2024** | **Interest Income**<sup>(3)</sup> | **PIK Income**<sup>(3)</sup> |
| **Senior Secured Loans—First Lien** | | | | | | | | |
| &nbsp;&nbsp;Permian Production Holdings, LLC | $4816 | $197 | $(2045) | $148 | $(237) | $2879 | $432 | $78 |
| **Asset Based Finance** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Bridge Street CLO IV Ltd., Subordinated Notes |  | 23945 |  |  | (3266) | 20679 | 2766 |  |
| &nbsp;&nbsp;Bridge Street Warehouse CLO IV Ltd. |  | 22729 | (22729) |  |  |  |  | 729 |
| &nbsp;&nbsp;Bridge Street Warehouse CLO V Ltd. |  | 25492 |  |  |  | 25492 |  | 492 |
| **Equity/Other** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;GWP Midstream Holdco, LLC, Common Equity | 1661 |  |  |  | 857 | 2518 |  |  |
| &nbsp;&nbsp;Harvest Oil & Gas Corp., Common Equity | 271 |  |  |  | 104 | 375 |  |  |
| &nbsp;&nbsp;Permian Production Holdings, LLC, Common Equity | 748 |  |  |  | (748) |  |  |  |
| &nbsp;&nbsp;Telpico, LLC, Common Equity |  |  |  |  |  |  |  |  |
|  | $7496 | $72363 | $(24774) | $148 | $(3290) | $51943 | $3198 | $1299 |

---

_____________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Gross additions may include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and/or the movement of an existing portfolio company into this category from a different category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and/or the movement of an existing portfolio company out of this category into a different category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Interest and PIK income presented for the year ended December 31, 2024.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Consolidated Schedule of Investments (continued)**

**As of December 31, 2024**

**(in thousands, except share amounts)**

    

(v)&nbsp;&nbsp;&nbsp;&nbsp;Under the 1940 Act, the Company generally is deemed to "control" a portfolio company if it owns more than 25% of the portfolio company's voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of December 31, 2024, the Company held investments in portfolio companies of which it is deemed to be an "affiliated person" of and deemed to "control." The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person and deemed to control as of December 31, 2024:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company** | **Fair Value at**<br>**December 31, 2023** | **Gross Additions**<sup>(1)</sup> | **Gross Reductions**<sup>(2)</sup> | **Net Realized Gain (Loss)** | **Net Change in Unrealized Appreciation (Depreciation)** | **Fair Value at**<br>**December 31, 2024** | **Interest Income**<sup>(3)</sup> | **PIK Income**<sup>(3)</sup> | **Dividend Income**<sup>(3)</sup> |
| **Senior Secured Loans—First Lien** | | | | | | | | | |
| &nbsp;&nbsp;Allied Wireline Services, LLC | $22200 | $— | $(19282) | $(50995) | $48077 | $— | $— | $— | $— |
| &nbsp;&nbsp;Warren Resources, Inc. | 23823 | 60 | (20357) | (3526) |  |  | 1493 | 60 |  |
| **Sustainable Infrastructure Investments, LLC** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Sustainable Infrastructure Investments, LLC<sup>(4)</sup> | 39427 | 5793 | (46607) | (2336) | 3723 |  |  |  | 3499 |
| **Equity/Other** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Allied Wireline Services, LLC, Common Equity |  |  |  | (1527) | 1527 |  |  |  |  |
| &nbsp;&nbsp;Allied Wireline Services, LLC, Warrants |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Warren Resources, Inc., Common Equity | 15566 | 127 | (13578) | (7303) | 5188 |  |  |  |  |
|  | $101016 | $5980 | $(99824) | $(65687) | $58515 | $— | $1493 | $60 | $3499 |

---

_____________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Gross additions may include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and/or the movement of an existing portfolio company into this category from a different category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and/or the movement of an existing portfolio company out of this category into a different category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Interest, PIK and dividend income presented for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;On December 18, 2024, the Company purchased Imperial Sustainable Infrastructure Investments, LLC's remaining 12.5% interest in Sustainable Infrastructure Investments, LLC, or SIIJV, and SIIJV became a wholly-owned subsidiary of the Company.

*See notes to unaudited consolidated financial statements.*

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements**

**(in thousands, except share and per share amounts)**

    

**Note 1. Principal Business and Organization**

FS Specialty Lending Fund, or the Company, was formed as a Delaware statutory trust under the Delaware Statutory Trust Act on September 16, 2010 and formally commenced investment operations on July 18, 2011. Prior to September 29, 2023, the Company's name was FS Energy and Power Fund. The Company is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or the 1940 Act. In addition, the Company has elected to be treated for U.S. federal income tax purposes, and intends to qualify annually, as a regulated investment company, or RIC, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. The Company has various wholly-owned financing subsidiaries, including special-purpose financing subsidiaries and subsidiaries through which it holds or expects to hold interests in certain portfolio companies. One of the wholly-owned financing subsidiaries is Sustainable Infrastructure Investments, LLC, or SIIJV, which prior to December 18, 2024, was a joint venture between the Company and Imperial Sustainable Infrastructure Investments, LLC. On December 18, 2024, the Company purchased Imperial Sustainable Infrastructure Investments, LLC's remaining 12.5% interest in SIIJV and SIIJV became a wholly-owned subsidiary of the Company. The unaudited consolidated financial statements include both the Company's accounts and the accounts of its wholly-owned subsidiaries as of June 30, 2025. All significant intercompany transactions have been eliminated in consolidation. Certain of the Company's consolidated subsidiaries are subject to U.S. federal and state income taxes.

The Company's investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation by investing primarily in private and public credit in a broad set of industries, sectors and sub-sectors. The Company's investment policy is to invest primarily in a portfolio of secured and unsecured floating and fixed rate loans, bonds and other types of credit instruments, which, under normal circumstances, will represent at least 80% of the Company's total assets.

The Company is managed by FS/EIG Advisor, LLC, or FS/EIG Advisor, pursuant to an investment advisory and administrative services agreement, dated as of April 9, 2018, or the FS/EIG investment advisory agreement. FS/EIG Advisor oversees the management of the Company's operations and is responsible for making investment decisions with respect to the Company's portfolio. FS/EIG Advisor is jointly operated by an affiliate of Franklin Square Holdings, L.P. (which does business as Future Standard) (formerly FS Investments) and EIG Asset Management, LLC, or EIG.

On April 22, 2025, the board of trustees determined to convert the Company from a BDC to a closed-end fund registered under the 1940 Act. To effectuate the conversion to a closed-end fund, the board of trustees approved the merger of the Company, or the Reorganization, with and into New FS Specialty Lending Fund, or the Successor Company, a newly organized Delaware statutory trust registered under the 1940 Act as a closed-end fund, pursuant to an Agreement and Plan of Reorganization, or the Reorganization Agreement, dated as of April 22, 2025, among the Company, the Successor Company, and, for the limited purposes set forth therein, FS/EIG Advisor. Completion of the Reorganization is subject to a number of conditions. Following the Reorganization, the Successor Company intends to change its name to FS Specialty Lending Fund and to seek to list its common shares on the New York Stock Exchange under the symbol "FSSL." In advance of the anticipated listing, the board of trustees approved a reverse share split, which was completed on May 15, 2025. See Note 3 for additional information on the reverse share split.

A summary of the Company's weighted average number of common shares outstanding and earnings per share after adjusting for the reverse share split is as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| Weighted average number of common shares outstanding (as previously reported) | 455506155 | 455506155 |
| Weighted average number of common shares outstanding (as adjusted) | 75917730 | 75917730 |
| Net investment income per share (as previously reported) | $0.06 | $0.16 |
| Net investment income per share (as adjusted) | $0.37 | $0.98 |
| Earnings per share (as previously reported) | $0.09 | $0.13 |
| Earnings per share (as adjusted) | $0.55 | $0.78 |

---

**Note 2. Summary of Significant Accounting Policies**

*Basis of Presentation:* The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For a more complete discussion of significant accounting policies and certain other information, the Company's interim unaudited consolidated financial statements should be read

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 2. Summary of Significant Accounting Policies (continued)**

in conjunction with its audited consolidated financial statements as of and for the year ended December 31, 2024 included in the Company's annual report on Form 10-K. Operating results for the six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. The December 31, 2024 consolidated balance sheet and consolidated schedule of investments are derived from the Company's audited consolidated financial statements as of and for the year ended December 31, 2024. The Company is considered an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies under Accounting Standards Codification Topic 946, *Financial Services—Investment Companies.* The Company has evaluated the impact of subsequent events through the date the unaudited consolidated financial statements were issued and filed with the Securities and Exchange Commission, or the SEC.

*Use of Estimates:* The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Many of the amounts have been rounded, and all amounts are in thousands, except share and per share amounts.

*Capital Gains Incentive Fee:* Pursuant to the terms of the FS/EIG investment advisory agreement, the incentive fee on capital gains is determined and payable in arrears as of the end of each calendar year (or upon termination of such agreement). Such fee equals 20.0% of the Company's "incentive fee capital gains," which are the Company's realized capital gains on a cumulative basis from inception, calculated as of the end of the applicable period, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid incentive fees on capital gains. The Company will accrue for the incentive fee on capital gains, which, if earned, will be paid annually. The Company will accrue the incentive fee on capital gains based on net realized and unrealized gains; however, the fee payable to FS/EIG Advisor will be based on realized gains and no such fee will be payable with respect to unrealized gains unless and until such gains are actually realized. For the six months ended June 30, 2025 and 2024, the Company did not accrue any amount of capital gains incentive fee.

*Subordinated Income Incentive Fee:* Pursuant to the terms of the FS/EIG investment advisory agreement, FS/EIG Advisor may also be entitled to receive a subordinated incentive fee on income. The subordinated incentive fee on income under the FS/EIG investment advisory agreement is calculated and payable quarterly in arrears and equals 20.0% of the Company's "pre-incentive fee net investment income" for the immediately preceding quarter subject to a hurdle rate, expressed as a rate of return on adjusted capital, equal to 1.625% per quarter, or an annualized hurdle rate of 6.5%. As a result, FS/EIG Advisor will not earn this incentive fee for any quarter until the Company's pre-incentive fee net investment income for such quarter exceeds the hurdle rate of 1.625%. For purposes of this fee, "adjusted capital" means cumulative gross proceeds generated from sales of the Company's common shares reduced for distributions from non-liquidating dispositions of the Company's investments paid to shareholders. Once the Company's pre-incentive fee net investment income in any quarter exceeds the hurdle rate, FS/EIG Advisor will be entitled to a "catch-up" fee equal to the amount of the Company's pre-incentive fee net investment income in excess of the hurdle rate, until the Company's pre-incentive fee net investment income for such quarter equals 2.031%, or 8.125% annually, of adjusted capital. This "catch-up" feature will allow FS/EIG Advisor to recoup the fees foregone as a result of the existence of the hurdle rate. Thereafter, FS/EIG Advisor will be entitled to receive 20.0% of the Company's pre-incentive fee net investment income. For the six months ended June 30, 2025 and 2024, the Company did not accrue any amount of subordinated incentive fee on income.

*Reclassifications:* Certain amounts in the unaudited consolidated financial statements for the six months ended June 30, 2024 may have been reclassified to conform to the classifications used to prepare the unaudited consolidated financial statements for the six months ended June 30, 2025.

*Revenue Recognition:* Security transactions are accounted for on the trade date. The Company records interest income on an accrual basis to the extent that it expects to collect such amounts. The Company records dividend income on the ex-dividend date. Distributions received from limited liability company, or LLC, and limited partnership, or LP, investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. The Company does not accrue as a receivable interest or dividends on loans and securities if it has reason to doubt its ability to collect such income. The Company's policy is to place investments on non-accrual status when there is reasonable doubt that interest income will be collected. The Company considers many factors relevant to an investment when placing it on or removing it from non-accrual status including, but not limited to, the delinquency status of the investment, economic and business conditions, the overall financial condition of the underlying investment, the value of the underlying collateral, bankruptcy status, if any, and any other facts or circumstances relevant to the investment. If there is reasonable doubt that the Company will receive any previously accrued interest, then the accrued interest will be written-off. Payments received on non-accrual investments may be recognized as income or applied to principal depending upon the collectability of the remaining principal and interest. Non-accrual investments may be restored to accrual status when principal and interest become current and are likely to remain current based on the Company's judgment.

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<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 2. Summary of Significant Accounting Policies (continued)**

Loan origination fees, original issue discount and market discount are capitalized and the Company amortizes such amounts as interest income over the respective term of the loan or security. Upon the prepayment of a loan or security, any unamortized loan origination fees and original issue discount are recorded as interest income. Structuring and other non-recurring upfront fees are recorded as fee income when earned. The Company records prepayment premiums on loans and securities as fee income when it earns such amounts. For the six months ended June 30, 2025 and 2024, the Company recognized no structuring or other upfront fee revenue.

The Company invests in Collateralized Loan Obligations, or CLOs. Interest income from investments in the "equity" class of the CLO (in the Company's case, subordinated notes) is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows in accordance with Accounting Standards Codification Topic 325-40-35, *Beneficial Interests in Securitized Financial Assets*, or ASC Topic 325. The Company monitors the expected cash inflows from its equity investments in the CLO, including the expected principal repayments. The effective yield is determined and updated quarterly.

*Derivative Instruments:* The Company's derivative instruments may include forward foreign currency exchange contracts and equity total return swaps. The Company recognizes all derivative instruments as assets or liabilities at fair value in its unaudited consolidated financial statements. Derivative contracts entered into by the Company are not designated as hedging instruments for accounting purposes, and as a result, the Company presents changes in fair value through net change in unrealized appreciation (depreciation) on swap contracts in the unaudited consolidated statements of operations. Realized gains and losses of the derivative instruments are included in net realized gain (loss) on swap contracts in the unaudited consolidated statements of operations.

*Collateralized Loan Obligation – Warehouses:* A Collateralized Loan Obligation Warehouse, or CLO Warehouse, is an entity organized for the purpose of holding syndicated bank loans, also known as leveraged loans, prior to the issuance of securities from that same vehicle. During the warehouse period, a CLO Warehouse will secure investments and build a portfolio of primarily leveraged loans and other debt obligations. The warehouse period terminates when the collateralized loan obligation vehicle issues various tranches of securities to the market. At this time, financing through the issuance of debt securities and subordinated notes is used to repay the bank financing.

The fair value of the Company's investment in the CLO Warehouse is determined by adding the excess spread (accrued interest plus interest received less financing cost) to the Company's initial investment in the CLO Warehouse. Consistent with Accounting Standards Codification Topic 820, *Fair Value Measurements and Disclosure*, or ASC Topic 820, issued by the Financial Accounting Standards Board, or the FASB, the excess spread represents the price that would be received from the sale of the CLO Warehouse investment in an orderly transaction between market participants. CLO warehouses can be exposed to credit events, mark to market changes, rating agency downgrades and financing cost changes.

*Segment Reporting:* The Company operates through a single operating and reporting segment with an investment objective to generate current income and, to a lesser extent, long-term capital appreciation. The chief operating decision maker, or CODM, is the Company's chief executive officer. The CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company's change in shareholders' equity resulting from operations. In addition to numerous other factors and metrics, the CODM utilizes net investment income as a key metric in determining the amount of dividends to be distributed to the Company's shareholders. As the Company's operations comprise of a single reporting segment, the segment assets are reflected on the accompanying unaudited consolidated balance sheets as "total assets" and the significant segment expenses are listed on the accompanying unaudited consolidated statements of operations.

**Note 3. Share Transactions**

There were no capital transactions with respect to the Company's common shares during the six months ended June 30, 2025 and 2024.

On February 25, 2020, the Company received exemptive relief from the SEC permitting it to offer multiple classes of common shares. While the Company has no present intention to recommence a public offering of its common shares, the Company could do so in the future.

*Reverse Share Split* 

On May 15, 2025, every six common shares of the Company were combined into one share, and each shareholder's common shares were automatically converted into a number of common shares (and/or fractional common shares, as applicable) equal to the number of common shares of the Company held immediately prior to the reverse share split divided by six. As of May 15, 2025, the number of outstanding shares of the Company's common shares was reduced from 455,506,155 to 75,917,730. The reverse share split did not modify the rights or preferences of the Company's common shares. There was no change in the par value of $0.001 per share as a result of the reverse share split.

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<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 4. Related Party Transactions**

*Compensation of the Investment Adviser*

Pursuant to the FS/EIG investment advisory agreement, FS/EIG Advisor is entitled to an annual base management fee based on the average weekly value of the Company's gross assets (gross assets equals total assets as set forth on the Company's consolidated balance sheets) during the most recently completed calendar quarter and an incentive fee based on the Company's performance. The base management fee is payable quarterly in arrears, and is calculated at an annual rate of 1.75% of the average weekly value of the Company's gross assets. See Note 2 for a discussion of the capital gains and subordinated income incentive fees that FS/EIG Advisor may be entitled to under the FS/EIG investment advisory agreement.

FS/EIG Advisor has received structuring or other upfront fees from portfolio companies in which FS/EIG Advisor has caused the Company to invest. FS/EIG Advisor has agreed to offset the amount of any structuring, upfront or certain other fees received by FS/EIG Advisor or its members against the management fees payable by the Company under the FS/EIG investment advisory agreement. FS/EIG Advisor does not expect to offset such fees in the future. During the six months ended June 30, 2025 and 2024, $0 and $3, respectively of structuring, upfront or certain other fees received by FS/EIG Advisor or its members were offset against management fees.

Pursuant to the FS/EIG investment advisory agreement, FS/EIG Advisor oversees the Company's day-to-day operations, including the provision of general ledger accounting, fund accounting, legal services, investor relations, certain government and regulatory affairs activities and other administrative services. FS/EIG Advisor also performs, or oversees the performance of, the Company's corporate operations and required administrative services, which includes being responsible for the financial records that the Company is required to maintain and preparing reports for the Company's shareholders and reports filed with the SEC.

The Company reimburses FS/EIG Advisor for expenses necessary to perform services related to the Company's administration and operations, including FS/EIG Advisor's allocable portion of the compensation and/or related expenses of certain personnel of Future Standard and EIG providing administrative services to the Company on behalf of FS/EIG Advisor, and for transactional expenses for prospective investments, such as fees and expenses associated with performing due diligence reviews of investments that do not close, often referred to as "broken deal" costs. The Company reimburses FS/EIG Advisor no less than quarterly for expenses necessary to perform services related to the Company's administration and operations. The amount of this reimbursement is set at the lesser of (1) FS/EIG Advisor's actual costs incurred in providing such services and (2) the amount that the Company estimates it would be required to pay alternative service providers for comparable services in the same geographic location. FS/EIG Advisor allocates the cost of such services to the Company based on factors such as time allocations and other reasonable metrics. The Company's board of trustees reviews the methodology employed in determining how the expenses are allocated to the Company and assesses the reasonableness of such reimbursements for expenses allocated to the Company based on the breadth, depth and quality of such services as compared to the estimated cost to the Company of obtaining similar services from third-party providers known to be available. In addition, the Company's board of trustees considers whether any single third-party service provider would be capable of providing all such services at comparable cost and quality. Finally, the Company's board of trustees, among other things, compares the total amount paid to FS/EIG Advisor for such services as a percentage of the Company's net assets to the same ratio as reported by other comparable BDCs. The Company does not reimburse FS/EIG Advisor for any services for which it receives a separate fee, or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of FS/EIG Advisor.

*FS/EIG Advisor Transaction*

If the Reorganization occurs, concurrently with its closing, Future Standard will acquire EIG's interest in FS/EIG Advisor, or the Adviser Transaction, FS/EIG Advisor will become an indirect wholly-owned subsidiary of Future Standard, and FS/EIG Advisor will be renamed FS Specialty Lending Advisor, LLC. The Future Standard Global Credit Team will assume full responsibility for providing investment advisory services and services related to the Successor Company's administration and operations following the completion of the Reorganization and the Adviser Transaction.

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<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 4. Related Party Transactions (continued)**

The following table describes the fees and expenses accrued under the FS/EIG investment advisory agreement during the three and six months ended June 30, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| **Related Party** | **Source Agreement** | **Description** | **2025** | **2024** | **2025** | **2024** |
| FS/EIG Advisor | FS/EIG investment advisory agreement | Base Management Fee<sup>(1)</sup> | $8662 | $8962 | $17532 | $18074 |
| FS/EIG Advisor | FS/EIG investment advisory agreement | Administrative Services Expenses<sup>(2)</sup> | $1267 | $1535 | $2520 | $3070 |

---

_________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;During the six months ended June 30, 2025 and 2024, $17,542 and $17,258, respectively, in base management fees were paid to FS/EIG Advisor. The base management fee amount shown in the table above is shown net of $0 and $3 in structuring, upfront or certain other fees received by FS/EIG Advisor or its members and offset against base management fees for the three months ended June 30, 2025 and 2024, respectively, and $0 and $3 in structuring, upfront or certain other fees received by FS/EIG Advisor or its members and offset against base management fees for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025 and December 31, 2024, $8,662 and $8,672, respectively, in base management fees were payable to FS/EIG Advisor.

(2)&nbsp;&nbsp;&nbsp;&nbsp;During the six months ended June 30, 2025 and 2024, $1,429 and $1,373, respectively, of the accrued administrative services expenses related to the allocation of costs of administrative personnel for services rendered to the Company by FS/EIG Advisor and the remainder related to other reimbursable expenses. The Company paid $1,712 and $1,949 in administrative services expenses to FS/EIG Advisor, or its affiliates, during the six months ended June 30, 2025 and 2024, respectively.

*Potential Conflicts of Interest*

The members of the senior management and investment teams of FS/EIG Advisor serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as the Company does, or of investment vehicles managed by the same personnel. The officers, managers and other personnel of FS/EIG Advisor serve and may serve in the future in similar or other capacities for the investment advisers to the other funds managed or advised by Future Standard or EIG, and may serve in similar or other capacities for the investment advisers to future investment vehicles affiliated with Future Standard or EIG. In serving in these multiple and other capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the Company's best interests or in the best interest of the Company's shareholders. The Company's investment objectives may overlap with the investment objectives of such investment funds, accounts or other investment vehicles. In addition, members of the senior management and investment teams and other employees of FS/EIG Advisor or its members or their respective affiliates may from time to time invest in portfolio companies in which the Company also invests. Subject to applicable law, the Company may periodically sell loans that it previously acquired after a short period of time to earn fees or other revenue, including from purchasers that do not participate in loan originations. FS/EIG Advisor or its affiliates may receive asset-based fees from purchasers that are advisory clients, resulting in a conflict of interest for FS/EIG Advisor. In some cases, FS/EIG Advisor (or an affiliate) will receive a fee from a third-party investor for making excess investment opportunities available, and such fee creates an incentive to recommend such opportunities to the Company and to allocate opportunities to such a third-party investor.

FS/EIG Advisor's affiliates and its personnel are simultaneously providing investment advisory services to other affiliated entities. FS/EIG Advisor may determine that it is appropriate for the Company and one or more other investment accounts managed by FS/EIG Advisor's affiliates to participate in an investment opportunity. To the extent the Company is able to make co-investments with investment accounts managed by FS/EIG Advisor or its affiliates, these co-investment opportunities may give rise to conflicts of interest or perceived conflicts of interest among the Company and the other participating accounts. In addition, conflicts of interest or perceived conflicts of interest may also arise in determining which investment opportunities should be presented to the Company and other participating accounts. To mitigate these conflicts, FS/EIG Advisor will seek to execute such transactions on a fair and equitable basis and in accordance with its allocation policies, taking into account various factors, which may include: the source of origination of the investment opportunity; investment objectives and strategies; tax considerations; risk, diversification or investment concentration parameters; characteristics of the security; size of available investment; available liquidity and liquidity requirements; regulatory restrictions; and/or such other factors as may be relevant to a particular transaction. As affiliates of Future Standard and EIG currently serve as the investment adviser to other entities and accounts, it is possible that some investment opportunities will be provided to such other entities and accounts rather than to the Company.

*Exemptive Relief*

As a BDC, the Company is subject to certain regulatory restrictions in making its investments. For example, BDCs generally are not permitted to co-invest with certain affiliated entities in transactions originated by the BDC or its affiliates in the absence of an exemptive order from the SEC. However, BDCs are permitted to, and may, simultaneously co-invest in transactions where price is the only negotiated term. In addition, the Company has received exemptive relief from the SEC permitting it to co-invest, subject to the satisfaction of certain conditions, in certain privately negotiated investment transactions with certain affiliates. This exemptive relief

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<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 4. Related Party Transactions (continued)**

includes: an order dated June 4, 2013, that permits certain follow-on and disposition transactions related to past co-investments with certain affiliates of the Company's former investment adviser, including FS KKR Capital Corp.; an order dated April 10, 2018, that permits certain follow-on and disposition transactions related to past co-investments with certain EIG-advised funds; and an order dated November 13, 2024, that permits certain co-investments with certain affiliates of FS/EIG Advisor, including FS Credit Opportunities Corp. and FS Credit Income Fund, among others. On April 29, 2025, the SEC granted an exemptive order that supersedes the November 13, 2024 order. The new order similarly permits co-investments with certain affiliates but will simplify certain of the conditions under the current order and provide more flexibility than the current order.

*Bridge Street CLO IV Ltd. and Bridge Street CLO V Ltd. (each, a CLO Issuer)*

The collateral manager and administrator of each CLO Issuer, FS Structured Products Advisor, LLC, or FSSPA, is an affiliate of FS/EIG Advisor. In accordance with an agreement between FSSPA and the Company, as long as the Company owns more than 4.99% of the CLO Issuer's equity, FSSPA will reimburse the Company on a quarterly basis in an amount equal to a portion of the compensation received by FSSPA from the CLO Issuer, equal to the Company's percentage ownership of the CLO Issuer's subordinated notes, for FSSPA's collateral management and collateral administrator services less certain administrative costs borne by FSSPA during the relevant quarter as defined in the expense reimbursement agreement.

On the respective CLO issuance dates, the respective CLO Issuer issued to the market various tranches of notes, or CLO Notes, including the issuance of subordinated notes to the Company in each case. Upon any refinancing of the CLO Notes issued by a CLO Issuer, the Company may acquire additional tranches of the refinanced CLO Notes.

The following table presents summary information with respect to the Company's CLO issuances:

---

| | | | |
|:---|:---|:---|:---|
| CLO Issuer | CLO Issuance Date | Total CLO Notes Issued | Subordinated Notes Issued to the Company |
| Bridge Street CLO IV Ltd. | April 26, 2024 | $354700 | $23700 |
| Bridge Street CLO V Ltd. | April 3, 2025 | $408000 | $19500 |

---

*Bridge Street Warehouse CLO VI Ltd.*

Bridge Street Warehouse CLO VI Ltd., or Bridge Street Warehouse CLO VI, is a CLO Warehouse in which the Company contributes capital by subscribing for the preference shares issued by Bridge Street Warehouse CLO VI, which is accounted for as a financial instrument at fair value as of June 30, 2025. Bridge Street Warehouse CLO VI commenced operations on January 10, 2025 and was in the warehouse phase as of June 30, 2025. As of June 30, 2025, the Company contributed $5,000 to Bridge Street Warehouse CLO VI. The Company had an investment of $5,155 in Bridge Street Warehouse CLO VI, at fair value, as of June 30, 2025. Bridge Street Warehouse CLO VI financed the majority of its loan purchases using its warehouse financing facility. The amount of paid-in-kind interest income from the Bridge Street Warehouse CLO VI recorded on the Company's unaudited consolidated statement of operations for the three and six months ended June 30, 2025 was approximately $140 and $155, respectively.

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<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 5. Distributions**

The following table reflects the cash distributions per share that the Company declared on its common shares:

---

| | | |
|:---|:---|:---|
| | **Distribution** | **Distribution** |
| **For the Three Months Ended** | **Per Share**<sup>(2)</sup> | **Amount** |
| **Fiscal 2024** | | |
| &nbsp;&nbsp;March 31, 2024<sup>(1)</sup> | $0.0204 | $1549 |
| &nbsp;&nbsp;&nbsp;June 30, 2024 | 0.5196 | 39447 |
| &nbsp;&nbsp;&nbsp;Total | $0.5400 | $40996 |
| **Fiscal 2025** |  |  |
| &nbsp;&nbsp;March 31, 2025<sup>(1)</sup> | $0.0408 | $3097 |
| &nbsp;&nbsp;&nbsp;June 30, 2025 | 0.6318 | 47965 |
| &nbsp;&nbsp;&nbsp;Total | $0.6726 | $51062 |

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_________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;For the quarter ended December 31, 2024, the distribution amount per share was $0.4926, comprised of an initial distribution per share of $0.4518 declared in December 2024 and the remaining distribution per share of $0.0408 declared in January 2025, collectively representing an annualized distribution rate to shareholders of approximately 10.0%. For the quarter ended December 31, 2023, the distribution amount per share was $0.3858, comprised of an initial distribution per share of $0.3654 declared in December 2023 and the remaining distribution per share of $0.0204 declared in January 2024, collectively representing an annualized distribution rate to shareholders of approximately 7.5%.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The amount of each per share distribution has been retroactively adjusted to reflect the reverse share split as discussed above in Notes 1 and 3.

Subject to applicable legal restrictions and the sole discretion of the Company's board of trustees, the Company expects to provide enhanced quarterly distributions to shareholders until the achievement of a long-term liquidity event. On July 21, 2025, the Company's board of trustees declared an enhanced cash distribution of $0.6195 per share for the second quarter of 2025, representing an annualized distribution rate to shareholders of 12.5% based on the estimated net asset value of $19.82 per share as of June 30, 2025. The enhanced distributions are expected to be paid quarterly and increase in subsequent years until the achievement of a long-term liquidity event, subject to a maximum cap of 15.0% of the Company's then-current estimated net asset value beyond 2026. The Company expects a portion of the distributions may represent a return of investor capital, helping to accelerate liquidity for shareholders in the near-term. There can be no assurance that the Company will be able to pay distributions in the future. The timing and amount of any future distributions to shareholders are subject to applicable legal restrictions and the sole discretion of the Company's board of trustees.

The Company may fund its cash distributions to shareholders from any sources of funds legally available to it, including proceeds from the sale of the Company's common shares, borrowings, net investment income from operations, capital gains proceeds from the sale of assets and non-capital gains proceeds from the sale of assets, dividends or other distributions paid to the Company on account of preferred and common equity investments in portfolio companies. The Company has not established limits on the amount of funds it may use from available sources to make distributions. The Company's distribution proceeds have exceeded and in the future are expected to exceed its earnings. Therefore, portions of the distributions that the Company has made represented, and may make in the future are expected to represent, a return of capital to shareholders, which lowers their tax basis in their common shares. A return of capital generally is a return of a shareholder's investment rather than a return of earnings or gains derived from the Company's investment activities. Each year a statement on Form 1099-DIV identifying the sources of the distributions (i.e., paid from ordinary income, paid from net capital gains on the sale of securities, and/or a return of capital, which is a nontaxable distribution) will be mailed to the Company's shareholders. There can be no assurance that the Company will be able to pay distributions at a specific rate or at all.

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<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 5. Distributions (continued)**

The following table reflects the sources of the cash distributions on a tax basis that the Company declared on its common shares during the six months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| **Source of Distribution** | **Distribution Amount** | **Percentage** | **Distribution Amount** | **Percentage** |
| Net investment income<sup>(1)</sup> | $51062 | 100% | $40996 | 100% |
| Short-term capital gains proceeds from the sale of assets |  |  |  |  |
| Long-term capital gains proceeds from the sale of assets |  |  |  |  |
| Total | $51062 | 100% | $40996 | 100% |

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_________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;During the six months ended June 30, 2025 and 2024, 87.2% and 91.2%, respectively, of the Company's gross investment income was attributable to cash income earned, 6.9% and 4.7%, respectively, was attributable to paid-in-kind, or PIK, interest and 5.9% and 4.1%, respectively, was attributable to non-cash accretion of discount.

The determination of the tax attributes of the Company's distributions is made annually as of the end of the Company's fiscal year based upon the Company's taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of the Company's distributions for a full year. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV.

Net capital losses may be carried forward indefinitely, and their character is retained as short-term or long-term. As of June 30, 2025, the Company had short-term and long-term capital loss carryforwards available to offset future realized capital gains of $66,884 and $1,517,837, respectively.

As of June 30, 2025 and December 31, 2024, for federal income tax purposes, the gross unrealized appreciation on the Company's investments was $58,753 and $67,490, respectively, and the gross unrealized depreciation on the Company's investments was $105,008 and $138,467, respectively.

The aggregate cost of the Company's investments for federal income tax purposes totaled $1,692,933 and $1,913,645 as of June 30, 2025 and December 31, 2024, respectively. The aggregate net unrealized appreciation (depreciation) of the Company's investments on a tax basis was $(46,255) and $(71,008) as of June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, the Company had deferred tax assets of $147,638 and $150,870, respectively, particularly resulting from interest expense disallowance, net operating losses and capital losses of the Company's wholly-owned taxable subsidiaries. As of June 30, 2025 and December 31, 2024, the Company had no deferred tax liability. As of June 30, 2025 and December 31, 2024, certain wholly-owned taxable subsidiaries anticipated that they would be unable to fully utilize their deferred tax assets, therefore the deferred tax assets were offset by valuation allowances of $147,638 and $150,870, respectively.

**Note 6. Financial Instruments**

The Company may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities. These financial instruments may include forward foreign currency exchange contracts and swap contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Company has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

*Forward Foreign Currency Exchange Contracts*

The Company is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Company may enter into forward foreign currency exchange contracts to gain or reduce exposure, to foreign currencies. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments and borrowings held by the Company are denominated and in some cases, may be used to obtain exposure to a particular market.

Each forward foreign currency exchange contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the unaudited consolidated balance sheets. When a contract is closed, a realized gain or loss is recorded in the unaudited consolidated statement of operations equal to the difference between the value at the time it was opened

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<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 6. Financial Instruments (continued)**

and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts contains the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies. The average notional amount of forward foreign currency exchange contracts during the six months ended June 30, 2025, which are indicative of the volumes of these derivative types was $20,977.

*Total Return Swaps*

The Company utilizes total return swaps to obtain exposure to securities without owning such securities. A total return swap, or TRS, is a contract in which there is an exchange of cash flows whereby one party agrees to make periodic payments based on the total return (distributions or periodic interest payments plus capital gains/losses) of an underlying instrument in exchange for fixed or floating rate interest payments. If the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Company receives payment from or makes a payment to the counterparty. Total return swaps are entered into to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one market with another market.

*Nomura Total Return Swap*

The Company entered into an equity total return swap with Nomura Global Financial Products Inc., or Nomura. Under the Nomura TRS, the Company obtained the economic benefit of owning shares of FS Credit Opportunities Corp., or FSCO, an investment company registered under the 1940 Act, without actually owning them, and Nomura received an interest-type payment in return. The investment adviser to FSCO is wholly-owned by Franklin Square Holdings, L.P., which is also the majority owner of FS/EIG Advisor.

The Nomura TRS was marked-to-market daily and the change in market value was recorded as unrealized appreciation or depreciation on swap contracts in the consolidated balance sheets. Pursuant to its terms, the Nomura TRS settled monthly and a realized gain or loss was recorded in the consolidated statements of operations equal to the difference between the value of the shares underlying the Nomura TRS at the time the swap was entered into or the previous settlement date and the value as of the then current settlement date, plus dividends received and less accrued interest. Any dividends received by Nomura as holder of the FSCO shares were paid to the Company. The Nomura TRS had a term of three years, but it could be terminated earlier in whole or in part following the occurrence of certain prescribed events agreed to between Nomura and the Company. The primary underlying risk exposure through the use of equity total return swaps was equity market risk. The Nomura TRS terminated on March 3, 2025.

*BNP Paribas Total Return Swap*

On February 15, 2024, FSSL Finance BNPP TRS LLC, or FSSL Finance BNPP TRS, a wholly-owned financing subsidiary of the Company, entered into a TRS for a portfolio of senior secured floating rate loans with BNP Paribas, or BNPP. The BNPP TRS enables the Company, through its ownership of FSSL Finance BNPP TRS, to obtain the economic benefit of owning the broadly syndicated loans subject to the TRS, without actually owning them, in return for an interest-type payment to BNPP. As such, the BNPP TRS is analogous to the Company borrowing funds to acquire loans and incurring interest expense to a lender.

The terms of the BNPP TRS include, among other things, (a) payment by BNPP to FSSL Finance BNPP TRS of all interest and fees (less applicable withholding taxes) on the underlying loans, (b) payment by FSSL Finance BNPP TRS to BNPP of (i) a financing fee on the outstanding notional amount of the TRS at a rate equal to USD-SOFR Compounded Index plus 1.65% per annum, and (ii) a utilization fee of 0.85% per annum on the difference between any lesser usage amount and a $100,000 minimum usage threshold, (c) upon the termination or repayment of any loan subject to the TRS, FSSL Finance BNPP TRS either will receive from BNPP the appreciation in the value of such loan or will pay to BNPP any depreciation in the value of such loan and (d) guarantee by the Company of all obligations of FSSL Finance BNPP TRS. The BNPP TRS terminated on June 4, 2025.

The monthly average notional amount of the Nomura TRS during the period January 1, 2025 through March 3, 2025 (termination date) and during the six months ended June 30, 2024 was $6,349 and $39,744, respectively. The monthly average notional amount of the BNPP TRS during the period January 1, 2025 through June 4, 2025 (termination date) and during the six months ended June 30, 2024 was $63,799 and $52,428, respectively.

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 6. Financial Instruments (continued)**

The following table presents the fair value of open derivative contracts (which are not considered to be hedging instruments for accounting purposes) as of June 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025<br> (Unaudited)** | **June 30, 2025<br> (Unaudited)** | **December 31, 2024** | **December 31, 2024** |
| **Instrument** | **Derivative Assets** | **Derivative Liabilities** | **Derivative Assets** | **Derivative Liabilities** |
| Credit Risk |  |  |  |  |
| &nbsp;&nbsp;BNP Paribas total return swap | $— | $— | $70<sup>(2)</sup> | $— |
| Foreign Currency Risk |  |  |  |  |
| &nbsp;&nbsp;Forward foreign currency exchange contracts | $— | $305<sup>(1)</sup> | $— | $— |

---

______________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Reflected on the Company's unaudited consolidated balance sheets as: Unrealized depreciation on forward foreign currency exchange contracts.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Reflected on the Company's consolidated balance sheets as: Unrealized appreciation on swap contracts.

The effect of derivative contracts (which are not considered to be hedging instruments for accounting purposes) on the Company's statements of operations for the six months ended June 30, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Net Realized Gains (Losses)** | **Net Realized Gains (Losses)** | **Net Change in Unrealized <br>Appreciation (Depreciation)** | **Net Change in Unrealized <br>Appreciation (Depreciation)** |
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| **Instrument** | **2025** | **2024** | **2025** | **2024** |
| Credit Risk |  |  |  |  |
| &nbsp;&nbsp;Nomura total return swap | $262<sup>(1)</sup> | $5817<sup>(1)</sup> | $— | $— |
| &nbsp;&nbsp;BNP Paribas total return swap | $(178)<sup>(1)</sup> | $410<sup>(1)</sup> | $(70)<sup>(2)</sup> | $225<sup>(2)</sup> |
| Foreign Currency Risk |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Forward foreign currency exchange contracts | $(1046)<sup>(3)</sup> | $— | $(305)<sup>(4)</sup> | $— |

---

______________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Reflected on the Company's unaudited consolidated statements of operations as: Net realized gain (loss) on swap contracts.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Reflected on the Company's unaudited consolidated statements of operations as: Net change in unrealized appreciation (depreciation) on swap contracts.

(3) Reflected on the Company's unaudited consolidated statements of operations as: Net realized gain (loss) on forward foreign currency exchange contracts.

(4)&nbsp;&nbsp;&nbsp;&nbsp;Reflected on the Company's unaudited consolidated statements of operations as: Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts.&nbsp;&nbsp;&nbsp;&nbsp;

*Offsetting of Derivative Instruments*

The Company has derivative instruments that are subject to master netting agreements. These agreements include provisions to offset positions with the same counterparty in the event of default by one of the parties. The Company's unrealized appreciation and depreciation on derivative instruments are reported as gross assets and liabilities, respectively, in the consolidated balance sheets.

The following table presents the Company's derivative assets and liabilities by counterparty, net of amounts available for offset under a master netting agreement and net of any collateral received or pledged by the Company for such assets and liabilities as of June 30, 2025 and December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| **Counterparty** | **Derivative Assets** | **Derivative Liabilities** | **Net Value of Derivatives** | **Non-Cash Collateral**<br>**(Received) Pledged**<sup>(1)</sup> | **Cash Collateral**<br>**(Received) Pledged**<sup>(1)</sup> | **Net Amount of Derivative**<br>**Assets (Liabilities)**<sup>(2)</sup> |
| Nomura |  | $(305) | $(305) |  |  | $(305) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| **Counterparty** | **Derivative Assets** | **Derivative Liabilities** | **Net Value of Derivatives** | **Non-Cash Collateral**<br>**(Received) Pledged**<sup>(1)</sup> | **Cash Collateral**<br>**(Received) Pledged**<sup>(1)</sup> | **Net Amount of Derivative**<br>**Assets (Liabilities)**<sup>(2)</sup> |
| BNP Paribas | $70 |  | $70 |  |  | $70 |

---

______________

(1)&nbsp;&nbsp;&nbsp;&nbsp;In some instances, the actual amount of the collateral received and/or pledged may be more than the amount shown due to overcollateralization.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Net amount of derivative assets and liabilities represents the net amount due from the counterparty to the Company and the net amount due from the Company to the counterparty, respectively, in the event of default.

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 7. Investment Portfolio**

The following table summarizes the composition of the Company's investment portfolio at cost and fair value as of June 30, 2025 and December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025<br> (Unaudited)** | **June 30, 2025<br> (Unaudited)** | **June 30, 2025<br> (Unaudited)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Amortized Cost**<sup>(1)</sup> | **Fair Value** | **Percentage <br>of Portfolio** | **Amortized Cost**<sup>(1)</sup> | **Fair Value** | **Percentage <br>of Portfolio** |
| Senior Secured Loans—First Lien | $1374308 | $1356484 | 82% | $1456889 | $1445351 | 78% |
| Senior Secured Loans—Second Lien | 54108 | 50479 | 3% | 51604 | 49191 | 3% |
| Senior Secured Bonds | 66148 | 62634 | 4% | 104296 | 103726 | 6% |
| Unsecured Debt | 41047 | 41235 | 2% | 38785 | 38962 | 2% |
| Asset Based Finance | 46269 | 41911 | 3% | 49437 | 46171 | 2% |
| Equity/Other | 103042 | 93935 | 6% | 202778 | 159236 | 9% |
| Total | $1684922 | $1646678 | 100% | $1903789 | $1842637 | 100% |

---

______________

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

In general, under the 1940 Act, the Company would be presumed to "control" a portfolio company if it owned more than 25% of its voting securities or it had the power to exercise control over the management or policies of a portfolio company, and would be an "affiliated person" of a portfolio company if it owned 5% or more of its voting securities.

As of June 30, 2025, the Company held investments in seven portfolio companies of which it is deemed to be an "affiliated person" but is not deemed to "control". For additional information with respect to such portfolio companies, see footnote (t) to the unaudited consolidated schedule of investments as of June 30, 2025 in this quarterly report on Form 10-Q.

As of December 31, 2024, the Company held investments in six portfolio companies of which it is deemed to be an "affiliated person" but is not deemed to "control" and the Company did not hold any portfolio companies of which it is deemed to "control." For additional information with respect to such portfolio companies, see footnotes (u) and (v) to the consolidated schedule of investments as of December 31, 2024 in this quarterly report on Form 10-Q.

The Company's investment portfolio may contain loans or bonds that are in the form of lines of credit or revolving credit facilities, or other investments, pursuant to which the Company may be required to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. As of June 30, 2025, the Company had 22 senior secured loan investments with aggregate unfunded commitments of $95,033. As of December 31, 2024, the Company had 20 senior secured loan investments with aggregate unfunded commitments of $92,715. The Company maintains sufficient cash on hand, available borrowings and/or liquid securities to fund such unfunded commitments should the need arise.

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 7. Investment Portfolio (continued)**

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of June 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025<br> (Unaudited)** | **June 30, 2025<br> (Unaudited)** | **December 31, 2024** | **December 31, 2024** |
|<br>**Industry Classification** | **Fair Value** | **Percentage <br>of Portfolio** | **Fair Value** | **Percentage <br>of Portfolio** |
| Commercial & Professional Services | $206382 | 13% | $201499 | 11% |
| Consumer Services | 196099 | 12% | 187756 | 10% |
| Capital Goods | 192922 | 12% | 160441 | 9% |
| Health Care Equipment & Services | 172893 | 10% | 184439 | 10% |
| Materials | 137546 | 8% | 123577 | 7% |
| Energy | 123661 | 8% | 265867 | 14% |
| Consumer Durables & Apparel | 95127 | 6% | 83025 | 4% |
| Consumer Discretionary Distribution & Retail | 90214 | 5% | 79781 | 4% |
| Financial Services | 88667 | 5% | 83459 | 5% |
| Media & Entertainment | 79593 | 5% | 94236 | 5% |
| Automobiles & Components | 48692 | 3% | 47215 | 3% |
| Pharmaceuticals, Biotechnology & Life Sciences | 44552 | 3% | 40822 | 2% |
| Software & Services | 36717 | 2% | 57658 | 3% |
| Consumer Staples Distribution & Retail | 26598 | 2% | 45789 | 2% |
| Transportation | 24582 | 1% | 30971 | 2% |
| Telecommunication Services | 20419 | 1% | 39406 | 2% |
| Equity Real Estate Investment Trusts (REITs) | 19044 | 1% | 19115 | 1% |
| Insurance | 15599 | 1% | 34569 | 2% |
| Household & Personal Products | 14728 | 1% | 50559 | 3% |
| Real Estate Management & Development | 12643 | 1% | 12453 | 1% |
| Total | $1646678 | 100% | $1842637 | 100% |

---

**Note 8. Fair Value of Financial Instruments**

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

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

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

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

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

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 8. Fair Value of Financial Instruments (continued)**

As of June 30, 2025 and December 31, 2024, the Company's investments were categorized as follows in the fair value hierarchy:

---

| | | |
|:---|:---|:---|
| **Valuation Inputs** | **June 30, 2025<br> (Unaudited)** | **December 31, 2024** |
| Level 1—Price quotations in active markets | $— | $— |
| Level 2—Significant other observable inputs | 571310 | 879043 |
| Level 3—Significant unobservable inputs | 1075368 | 963594 |
| Total | $1646678 | $1842637 |

---

In addition, the Company had forward foreign currency exchange contracts as of June 30, 2025 and equity total return swaps as of December 31, 2024, which were categorized as Level 2 in the fair value hierarchy.

The Company's board of trustees is responsible for overseeing the valuation of the Company's portfolio investments at fair value as determined in good faith pursuant to FS/EIG Advisor's valuation policy. The Company's board of trustees has designated FS/EIG Advisor with day-to-day responsibility for implementing the portfolio valuation process set forth in FS/EIG Advisor's valuation policy.

The Company's investments consist primarily of investments that were acquired directly from the issuer. Debt investments, for which broker quotes or pricing information from third-party pricing services are not generally available, are valued by FS/EIG Advisor with the assistance of independent valuation firms, which determine a valuation range of fair value for such investments by considering, among other factors, the borrower's ability to adequately service its debt, prevailing interest rates for like investments, call features, anticipated prepayments and other relevant terms of the investments. Except as described below, all of the Company's equity/other investments are valued by independent valuation firms, which determine the fair value of such investments by considering, among other factors, contractual rights ascribed to such investments, as well as various income scenarios and multiples of earnings before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues or, in limited instances, book value, PV-10 multiples or liquidation value. An investment that is newly issued and purchased near the date of the financial statements is valued at cost if FS/EIG Advisor determines that the cost of such investment is the best indication of its fair value. Such investments described above are typically classified as Level 3 within the fair value hierarchy. Investments that are traded on an active public market are typically valued at their closing price as of the date of the financial statements and are classified as Level 1 within the fair value hierarchy. Except as described above, FS/EIG Advisor typically values the Company's other investments by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which are provided by an independent third-party pricing service and screened for validity by such service and are typically classified as Level 2 within the fair value hierarchy. Forward foreign currency exchange contracts are valued at their quoted daily prices obtained from an independent third party. The fair value of the loan total return swaps is determined daily based on the bid price of the underlying asset provided by the counterparty. These assumptions are observable in the marketplace or can be corroborated by active markets or broker quotes and are typically classified as Level 2 within the fair value hierarchy.

FS/EIG Advisor periodically benchmarks the bid and ask prices it receives from the third-party pricing service and/or dealers and independent valuation firms, as applicable, against the actual prices at which the Company purchases and sells its investments. Based on the results of the benchmark analysis and the experience of the Company's management in purchasing and selling these investments, FS/EIG Advisor believes that these prices are reliable indicators of fair value. FS/EIG Advisor reviewed the valuation determinations made with respect to these investments in a manner consistent with FS/EIG Advisor's valuation policy.

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 8. Fair Value of Financial Instruments (continued)**

The following is a reconciliation for the six months ended June 30, 2025 and 2024 of investments for which significant unobservable inputs (Level 3) were used in determining fair value:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** |
| | **Senior Secured Loans—First Lien** | **Senior Secured Loans—Second Lien** | **Senior Secured Bonds** | **Unsecured Debt** | **Asset Based Finance** | **Equity/Other** | **Total** |
| Fair value at beginning of period | $634469 | $49191 | $35940 | $38962 | $46171 | $158861 | $963594 |
| &nbsp;&nbsp;&nbsp;Accretion of discount (amortization of premium) | 2260 | 80 | 980 |  |  | 38 | 3358 |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) | (5330) |  | (8159) | (31) |  | (21475) | (34995) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) | 12389 | (1216) | 889 | 11 | (1092) | 48464 | 59445 |
| &nbsp;&nbsp;&nbsp;Purchases | 323823 |  |  |  | 42538 | 63588 | 429949 |
| &nbsp;&nbsp;&nbsp;Paid-in-kind interest | 860 | 2424 |  | 2294 | 903 |  | 6481 |
| &nbsp;&nbsp;&nbsp;Sales and repayments | (129486) |  | (20438) | (1) | (46609) | (141887) | (338421) |
| &nbsp;&nbsp;&nbsp;Transfers into Level 3<sup>(1)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Transfers out of Level 3<sup>(1)</sup> |  |  |  |  |  | (14043) | (14043) |
| Fair value at end of period | $838985 | $50479 | $9212 | $41235 | $41911 | $93546 | $1075368 |
| The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date | $(1595) | $(1216) | $889 | $11 | $(1092) | $9627 | $6624 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** |
| | **Senior Secured Loans—First Lien** | **Senior Secured Loans—Second Lien** | **Senior Secured Bonds** | **Unsecured Debt** | **Asset Based Finance** | **Sustainable Infrastructure<br>Investments, LLC** | **Equity/Other**<sup>(2)</sup> | **Total** |
| Fair value at beginning of period | $237307 | $54424 | $9874 | $— | $— | $39427 | $498448 | $839480 |
| &nbsp;&nbsp;&nbsp;Accretion of discount (amortization of premium) | 672 | 134 | 28 |  |  |  | 119 | 953 |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) | (49961) | (12) | 4 |  |  |  | 48058 | (1911) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) | 44839 | 162 | (5193) | 220 | (2053) | 5200 | (76446) | (33271) |
| &nbsp;&nbsp;&nbsp;Purchases | 101101 | 26540 | 30745 | 35167 | 45711 |  | 2031 | 241295 |
| &nbsp;&nbsp;&nbsp;Paid-in-kind interest | 2544 | 2097 |  |  | 729 |  |  | 5370 |
| &nbsp;&nbsp;&nbsp;Sales and repayments | (86495) | (2000) | (109) |  | (22821) |  | (264182) | (375607) |
| &nbsp;&nbsp;&nbsp;Transfers into Level 3<sup>(1)</sup> |  |  |  |  |  |  | 271 | 271 |
| &nbsp;&nbsp;&nbsp;Transfers out of Level 3<sup>(1)</sup> |  |  |  |  |  |  | (271) | (271) |
| Fair value at end of period | $250007 | $81345 | $35349 | $35387 | $21566 | $44627 | $208028 | $676309 |
| The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date | $(2779) | $162 | $(5193) | $220 | $(2053) | $5200 | $(80018) | $(84461) |

---

______________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Transfers into and out of Level 3 are deemed to have occurred as a result of, among other factors, changes in liquidity, the depth and consistency of prices from third-party pricing services and the existence of observable trades in the market. Transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the reporting period. For the six months ended June 30, 2025 and 2024, transfers into or out of Level 3 were due to increased or decreased price transparency.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The Company determined to reclassify investments in the schedule of investments from preferred equity to equity/other. Preferred equity amounts for the six months ended June 30, 2024 have been reclassified to equity/other to conform to the classifications used to prepare the reconciliation for the six months ended June 30, 2025.

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 8. Fair Value of Financial Instruments (continued)**

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements as of June 30, 2025 and December 31, 2024 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Type of Investment** | **Fair Value at** <br>**June 30, 2025**<br>**(Unaudited)** | **Valuation Technique**<sup>(1)</sup> | **Unobservable Input** | **Range** | **Weighted <br>Average** |
| Senior Secured Loans—First Lien | $788964 | Market Comparables | Market Yield (%) | 6.4%-13.1% | 9.6% |
|  |  |  | EBITDA Multiples (x) | 2.4x-6.9x | 5.6x |
|  | 50021 | Other<sup>(2)</sup> |  |  |  |
| Senior Secured Loans—Second Lien | 50479 | Market Comparables | Market Yield (%) | 14.1%-17.7% | 16.1% |
| Senior Secured Bonds | 9212 | Market Comparables | Market Yield (%) | 8.3%-8.8% | 8.6% |
| Unsecured Debt | 40850 | Market Comparables | Market Yield (%) | 11.0%-11.5% | 11.3% |
|  | 385 | Cost |  |  |  |
| Asset Based Finance | 36756 | Discounted Cash Flow | Discount Rate (%) | 15.3%-17.9% | 16.6% |
|  | 5155 | Income<sup>(3)</sup> | Excess Spread<sup>(3)</sup> | 1.9%-1.9% | 1.9% |
| Equity/Other | 38530 | Market Comparables | Market Yield (%) | 14.1%-15.1% | 14.6% |
|  |  |  | EBITDA Multiples (x) | 1.7x-10.3x | 6.3x |
|  |  |  | Net Aircraft Book Value Multiple (x) | 1.0x-1.1x | 1.0x |
|  | 55016 | Other<sup>(4)</sup> | Discount for Lack of Marketability (%) | 1.5%-2.0% | 1.8% |
| Total | $1075368 |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Type of Investment** | **Fair Value at <br>December 31, 2024** | **Valuation Technique**<sup>(1)</sup> | **Unobservable Input** | **Range** | **Weighted <br>Average** |
| Senior Secured Loans—First Lien | $387753 | Market Comparables | Market Yield (%) | 7.9%-13.9% | 10.1% |
|  |  |  | EBITDA Multiples (x) | 2.4x-3.0x | 2.7x |
|  | 179141 | Cost | Discount Rate (%) |  |  |
|  | 67575 | Other<sup>(2)</sup> |  |  |  |
| Senior Secured Loans—Second Lien | 49191 | Market Comparables | Market Yield (%) | 12.4%-17.0% | 15.0% |
| Senior Secured Bonds | 35940 | Market Comparables | Market Yield (%) | 8.5%-12.1% | 10.8% |
| Unsecured Debt | 38563 | Market Comparables | Market Yield (%) | 11.2%-11.7% | 11.4% |
|  | 399 | Cost |  |  |  |
| Asset Based Finance | 20679 | Discounted Cash Flow | Discount Rate (%) | 17.3%-18.3% | 17.8% |
|  | 25492 | Income<sup>(3)</sup> | Excess Spread<sup>(3)</sup> | 1.8%-1.8% | 1.8% |
| Equity/Other | 85970 | Market Comparables | Market Yield (%) | 13.3%-14.3% | 13.8% |
|  |  |  | EBITDA Multiples (x) | 2.6x-9.5x | 5.6x |
|  |  |  | Production Multiples (MMcfe/d) | $3,050.0-$3,450.0 | $3250.0 |
|  |  |  | Proved Reserves Multiples (Bcfe) | 0.7x-0.8x | 0.8x |
|  |  |  | PV-10 Multiples (x) | 1.7x-1.9x | 1.8x |
|  |  |  | Net Aircraft Book Value Multiple (x) | 1.0x-1.1x | 1.0x |
|  | 36580 | Discounted Cash Flow | Discount Rate (%) | 8.0%-12.0% | 10.0% |
|  | 36311 | Other<sup>(5)</sup> | Discount for Lack of Marketability (%) | 8.5%-52.5% | 31.0% |
| Total | $963594 |  |  |  |  |

---

______________

(1)&nbsp;&nbsp;&nbsp;&nbsp;For investments utilizing a market comparables valuation technique, a significant increase (decrease) in the market yield, in isolation, would result in a significantly lower (higher) fair value measurement, and a significant increase (decrease) in any of the valuation multiples, in isolation, would result in a significantly higher (lower) fair value measurement. For investments utilizing a discounted cash flow valuation technique, a significant increase (decrease) in the discount rate, in isolation, would result in a significantly lower (higher) fair value measurement. For investments utilizing an option valuation model valuation technique, a significant increase (decrease) in the volatility, in isolation, would result in a significantly higher (lower) fair value measurement.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Fair valued based on expected outcome of proposed corporate transactions, the expected value of the liquidation preference of the investment or other factors.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Fair value of the CLO Warehouse is based on cost plus the excess spread (accrued interest plus interest received less financing cost).

(4)&nbsp;&nbsp;&nbsp;&nbsp;Fair valued based on the market price of the security with a discount for lack of marketability until the shares are registered.

(5)&nbsp;&nbsp;&nbsp;&nbsp;Fair valued based on expected outcome of proposed corporate transactions. This valuation technique also includes a discount for lack of marketability.

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 9. Financing Arrangement**

The following tables present a summary of information with respect to the Company's outstanding financing arrangement as of June 30, 2025 and December 31, 2024. For additional information regarding the financing arrangement, see the notes to the Company's audited consolidated financial statements contained in its annual report on Form 10-K for the year ended December 31, 2024. Any significant changes to the Company's financing arrangement during the six months ended June 30, 2025 are discussed below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of June 30, 2025<br> (Unaudited)** | **As of June 30, 2025<br> (Unaudited)** | **As of June 30, 2025<br> (Unaudited)** | **As of June 30, 2025<br> (Unaudited)** | **As of June 30, 2025<br> (Unaudited)** |
| **Arrangement**<sup>(1)</sup> | **Type of** <br>**Arrangement** | **Rate**<sup>(2)</sup> | **Amount <br>Outstanding** | **Amount <br>Available** | **Maturity Date**<sup>(3)</sup> |
| Barclays Facility | Repurchase | Term SOFR+3.00% | $400000 | $100000 | September 6, 2026 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| **Arrangement**<sup>(1)</sup> | **Type of** <br>**Arrangement** | **Rate**<sup>(2)</sup> | **Amount <br>Outstanding** | **Amount <br>Available** | **Maturity Date** |
| Barclays Facility | Repurchase | Term SOFR+3.00% | $500000 | $— | September 6, 2026 |

---

______________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;The carrying amount outstanding under the facility approximates its fair value, unless otherwise noted.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The financing fee under the Barclays Facility is based on three-month term SOFR (with a floor of 0.00%) plus a facility margin calculated monthly as the weighted average of the individual margin of the collateral obligations (subject to a floor, in the aggregate, of 3.00%).

(3)&nbsp;&nbsp;&nbsp;&nbsp;On August 12, 2025, the Company and Barclays entered into an amendment to the Barclays Facility to extend the maturity date to August 12, 2028.

For the six months ended June 30, 2025 and 2024, the components of total interest expense for the Company's financing arrangement was as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|<br>**Arrangement**<sup>(1)</sup> | **Direct Interest Expense**<sup>(2)</sup> | **Amortization of Deferred Financing Costs**  | **Total Interest Expense** | **Direct Interest Expense**<sup>(2)</sup> | **Amortization of Deferred Financing Costs and Discount** | **Total Interest Expense** |
| Barclays Facility | $16466 | $1028 | $17494 | $17091 | $1033 | $18124 |

---

___________________

(1) &nbsp;&nbsp;&nbsp;&nbsp;Borrowings of each of the Company's wholly-owned special-purpose financing subsidiaries are considered borrowings of the Company for purposes of complying with the asset coverage requirements applicable to BDCs under the 1940 Act.

(2) &nbsp;&nbsp;&nbsp;&nbsp;Direct interest expense includes the effect of non-usage fees, administration fees and make-whole fees, if any.

The Company's average borrowings and weighted average interest rate, including the effect of non-usage fees, for the six months ended June 30, 2025, were $443,923 and 7.38%, respectively. As of June 30, 2025, the Company's effective interest rate on borrowings, including the effect of non-usage fees, was 7.72%.

The Company's average borrowings and weighted average interest rate, including the effect of non-usage fees, for the year ended December 31, 2024, were $400,546 and 8.30%, respectively. As of December 31, 2024, the Company's effective interest rate on borrowings, including the effect of non-usage fees, was 7.76%.

Under its financing arrangement, the Company made certain representations and warranties and was required to comply with various covenants, reporting requirements and other customary requirements for similar financing arrangements. The Company was in compliance with all covenants required by its financing arrangement as of June 30, 2025 and December 31, 2024.

*Barclays Facility*

On September 6, 2023, the Company, through two wholly-owned, special purpose financing subsidiaries, FSSL Finance BB AssetCo LLC, or FSSL Finance BB AssetCo, and FSSL Finance BB Seller LLC, or FSSL Finance BB Seller, entered into a financing arrangement with Barclays Bank PLC, or Barclays, pursuant to which up to $500,000 will be made available to fund investments in loans and other corporate securities, or together, the Collateral Obligations, and for other general corporate purposes, or the Barclays Facility.

The financing fee under the Barclays Facility is based on three-month term SOFR (with a floor of 0.00%) plus a facility margin calculated monthly as the weighted average of the individual margin of the Collateral Obligations (such individual margins

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<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 9. Financing Arrangement (continued)**

ranging from 1.90% to 4.20%, depending on the type of Collateral Obligations; subject to a floor, in the aggregate, of 3.00%).

Pursuant to the financing arrangement, the Company may contribute Collateral Obligations from time to time to FSSL Finance BB AssetCo, pursuant to a Sale and Contribution Agreement, dated as of September 6, 2023, between the Company and FSSL Finance BB AssetCo, or the Sale and Contribution Agreement. The assets held by FSSL Finance BB AssetCo secure the obligations of FSSL Finance BB AssetCo under the notes, or the Notes, issued by FSSL Finance BB AssetCo to FSSL Finance BB Seller, pursuant to an indenture, dated as of September 6, 2023, with Computershare Trust Company, N.A., or Computershare, as trustee, or the Indenture.

Principal on the Notes will be due and payable on the stated maturity date of July 1, 2033, and the Notes do not bear interest. Pursuant to the Indenture, FSSL Finance BB AssetCo has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar transactions. The Indenture contains events of default customary for similar transactions, including, without limitation: (a) failure to make principal payments on the Notes at their stated maturity or any earlier redemption date or to make interest payments on the Notes; (b) failure to disburse amounts in accordance with the priority of payments; (c) occurrence of certain bankruptcy and insolvency events with respect to FSSL Finance BB AssetCo; and (d) occurrence of a Repurchase Date under the Repurchase Agreement (defined below) as a result of an event of default with respect to FSSL Finance BB Seller. FSSL Finance BB Seller acquired and subscribed for the Notes pursuant to a Subscription Agreement, dated as of September 6, 2023, between FSSL Finance BB AssetCo and FSSL Finance BB Seller as the investor.

On September 6, 2023, FSSL Finance BB Seller entered into a Master Confirmation in respect of Repurchase Transactions with Barclays, or the Confirmation, which supplements and is subject to the Master Repurchase Agreement, dated as of September 6, 2023, between FSSL Finance BB Seller and Barclays, or the Master Repurchase Agreement, and such Master Repurchase Agreement, as supplemented and evidenced by the Confirmation, or the Repurchase Agreement. Pursuant to the Repurchase Agreement, on one or more occasions beginning September 6, 2023, Barclays began purchasing the Notes held by FSSL Finance BB Seller for an aggregate purchase price of $400,000 outstanding as of June 30, 2025, which price may, subject to satisfaction of certain conditions, increase from time to time up to the maximum aggregate purchase price of $500,000. On August 12, 2025, the Company entered into an agreement to amend the Barclays Facility to, among other things, (i) increase the maximum facility size from $500,000 to $650,000 and (ii) extend the maturity date to August 12, 2028.

Pursuant to the Repurchase Agreement, FSSL Finance BB Seller has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar transactions. The Repurchase Agreement contains events of default customary for similar financing transactions, including, without limitation: (a) failure to pay the repurchase price upon the applicable payment dates; (b) failure to pay the financing fees and make-whole amounts when due; (c) failure to post collateral as required; (d) occurrence of an event of default under the Indenture, (e) occurrence of insolvency events with respect to FSSL Finance BB Seller; (f) cross default by the Company with respect to its indebtedness above a certain threshold amount and (g) financial covenant breach by the Company.

As of June 30, 2025, Notes in an aggregate principal amount of $400,000 had been purchased by FSSL Finance BB Seller from FSSL Finance BB AssetCo and subsequently sold to Barclays under the Barclays Facility for aggregate proceeds of $397,542. The carrying amount outstanding under the Barclays Facility approximates its fair value. The Company funded the purchase of Notes by FSSL Finance BB Seller through a capital contribution to FSSL Finance BB Seller. The Notes issued by FSSL Finance BB AssetCo and purchased by FSSL Finance BB Seller eliminate in consolidation on the Company's financial statements.

The Company incurred costs of $6,199 in connection with obtaining the Barclays Facility, which the Company has recorded as deferred financing costs on its consolidated balance sheet and amortizes to interest expense over the life of the Barclays Facility. As of June 30, 2025, $2,458 of such deferred financing costs had yet to be amortized to interest expense.

The following table presents the carrying amount of the collateral pledged with the Company's open repurchase agreement as of June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Counterparty | Repurchase Agreement | Non-Cash Collateral Pledged<sup>(1)</sup> | Cash Collateral Pledged | Net Exposure Due (to)/from Counterparty<sup>(2)</sup> |
| Barclays Facility | $(397542) | $397542 | $– $|  |

---

_________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;In some instances, the actual amount of the collateral received and/or pledged may be more than the amount shown due to overcollateralization.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Net exposure represents the net receivable (payable) that would be due from (to) the counterparty in the event of default.

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<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 9. Financing Arrangement (continued)**

The repurchase agreement is collateralized by all or a portion of the securities held within FSSL Finance BB AssetCo LLC. The following table presents the fair market value of collateral, principal value and principal value plus accrued interest of the securities pledged as collateral to the Barclays Facility as of June 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
| Repurchase Agreement | Fair Market Value of Collateral | Principal Value | Principal Value including Accrued Interest |
| Barclays Facility<sup>(1)</sup> | $769294 | $400000 | $401236 |

---

_________________________

(1) &nbsp;&nbsp;&nbsp;&nbsp;See footnote (f) to the unaudited consolidated schedule of investments as of June 30, 2025 in this quarterly report on Form 10-Q.

The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type, and the remaining contractual maturity of those transactions as of June 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| | **Overnight and Continuous** | **Less Than 30 Days** | **30 - 90 Days** | **More Than 90 Days** | **Total** |
| **Repurchase Agreement** | | | | | |
| Barclays Facility<sup>(1)</sup> | $— | $— | $— | $(401236) | $(401236) |

---

_________________________

(1) &nbsp;&nbsp;&nbsp;&nbsp;The repurchase agreement is collateralized by Senior Secured Loans, Senior Secured Bonds, Unsecured Debt and Equity.

**Note 10. Commitments and Contingencies**

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

The Company is not currently subject to any material legal proceedings and, to the Company's knowledge, no material legal proceedings are threatened against the Company. From time to time, the Company may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Company's rights under contracts with its portfolio companies. While the outcome of any legal proceedings cannot be predicted with certainty, the Company does not expect that any such proceedings will have a material effect upon its financial condition or results of operations.

See Note 4 for a discussion of the Company's commitments to FS/EIG Advisor and its affiliates (including Future Standard) and Note 7 for a discussion of the Company's unfunded commitments.

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

**FS Specialty Lending Fund**

**Notes to Unaudited Consolidated Financial Statements (continued)**

**(in thousands, except share and per share amounts)**

    

**Note 11. Financial Highlights**

The following is a schedule of financial highlights of the Company for the six months ended June 30, 2025 and the year ended December 31, 2024:

---

| | | |
|:---|:---|:---|
| | **Six Months Ended<br>June 30, 2025 (Unaudited)** | **Year Ended**<br>**December 31, 2024** |
| **Per Share Data:**<sup>(1)</sup> | | |
| Net asset value, beginning of period | $19.80 | $20.58 |
| Results of operations<sup>(2)</sup> |  |  |
| &nbsp;&nbsp;Net investment income | 0.72 | 1.77 |
| &nbsp;&nbsp;Net realized gain (loss) and unrealized appreciation (depreciation) | (0.03) | (0.53) |
| Net increase (decrease) in net assets resulting from operations | 0.69 | 1.24 |
| Shareholder distributions<sup>(3)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;Distributions from net investment income | (0.67) | (2.02) |
| Net decrease in net assets resulting from shareholder distributions | (0.67) | (2.02) |
| Net asset value, end of period | $19.82 | $19.80 |
| Shares outstanding, end of period<sup>(1)</sup> | 75917730 | 75917730 |
| Total return<sup>(4)</sup> | 3.50% | 6.20% |
| Total return (without assuming reinvestment of distributions)<sup>(4)</sup> | 3.50% | 6.04% |
| **Ratio/Supplemental Data:** |  |  |
| Net assets, end of period | $1505035 | $1503456 |
| Ratio of net investment income to average net assets<sup>(5)(6)</sup> | 7.22% | 8.65% |
| Ratio of total operating expenses to average net assets<sup>(5)</sup> | 5.97% | 5.69% |
| Ratio of management fee offset to average net assets<sup>(5)</sup> |  | (0.00)% |
| Ratio of net operating expenses to average net assets<sup>(5)</sup> | 5.97% | 5.69% |
| Ratio of interest expense to average net assets<sup>(5)</sup> | 2.32% | 2.31% |
| Portfolio turnover<sup>(7)</sup> | 34.11% | 68.24% |
| Total amount of senior securities outstanding | $400000 | $500000 |
| Asset coverage per unit<sup>(8)</sup> | $4763 | $4007 |
| Asset coverage ratio<sup>(8)</sup> | 4.76 | 4.01 |

---

_________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;The share information utilized to determine per share data has been retroactively adjusted to reflect the reverse share split discussed in Notes 1 and 3. Per share data may be rounded in order to recompute the ending net asset value per share. The outstanding shares reflect the reverse share split on a retroactive basis.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The per share data was derived by using the weighted average shares outstanding during the applicable period.

(3)&nbsp;&nbsp;&nbsp;&nbsp;The per share data for distributions reflects the actual amount of distributions paid per share during the applicable period.

(4)&nbsp;&nbsp;&nbsp;&nbsp;The total return for each period presented was calculated based on the change in net asset value during the applicable period, assuming the reinvestment of all distributions at the Company's net asset value per share as of the end of the applicable period. The total return (without assuming reinvestment of distributions) for each period presented was calculated by taking the net asset value per share as of the end of the applicable period, adding the cash distributions per share which were declared during the applicable period and dividing the total by the net asset value per share at the beginning of the applicable period. The total returns do not consider the effect of any sales commissions or charges that may be incurred in connection with the sale of the Company's common shares. The total returns include the effect of the issuance of common shares at a net offering price that is greater than net asset value per share, which causes an increase in net asset value per share. The historical calculations of total returns in the table should not be considered representations of the Company's future total returns, which may be greater or less than the returns shown in the table due to a number of factors, including the Company's ability or inability to make investments in companies that meet its investment criteria, the interest rates payable on the debt securities the Company acquires, the level of the Company's expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which the Company encounters competition in its markets and general economic conditions. As a result of these factors, results for any previous period should not be relied upon as being indicative of performance in future periods. The total return calculations set forth above represent the total returns on the Company's investment portfolio during the applicable period and do not represent actual returns to shareholders.

(5)&nbsp;&nbsp;&nbsp;&nbsp;Weighted average net assets during the applicable period are used for this calculation. Ratios for the six months ended June 30, 2025 are annualized. Annualized ratios for the six months ended June 30, 2025 are not necessarily indicative of the ratios that may be expected for the year ending December 31, 2025.

(6)&nbsp;&nbsp;&nbsp;&nbsp;If FS/EIG Advisor had not agreed to offset the amount of any structuring, upfront or certain other fees it or its members received against the management fee payable by the Company, the ratio of net investment income to average net assets would have been 8.65% for the year ended December 31, 2024. See Note 4 for a discussion of the management fee offset with FS/EIG Advisor.

(7)&nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover for the six months ended June 30, 2025 is not annualized.

(8)&nbsp;&nbsp;&nbsp;&nbsp;Asset coverage per unit is the ratio of the carrying value of the Company's total consolidated assets, less liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness.

------

<u>[**Table of Contents**](#ifef9dc396265404099df1d2fe5d33b12_7)</u>

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

**&nbsp;&nbsp;&nbsp;&nbsp;(in thousands, except share and per share amounts)**

The information contained in this section should be read in conjunction with our unaudited consolidated financial statements and the related notes thereto included elsewhere in this quarterly report on Form 10-Q. In this report, "we," "us" and "our" refer to FS Specialty Lending Fund and "FS/EIG Advisor" refers to FS/EIG Advisor, LLC.

**Forward-Looking Statements**

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q may include statements as to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our business prospects and the prospects of the companies in which we may invest, including our and their ability to achieve our respective objectives as a result of our board of trustees' approval of changes to our investment policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the impact of the investments that we expect to make;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the ability of our portfolio companies to achieve their objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our current and expected financing arrangements and investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our ability to complete a liquidity event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to complete the reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to complete a listing of the common shares on a national securities exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the price at which the common shares may trade on a national securities exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the general interest rate environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the elevated levels of inflation, and its impact on our portfolio companies and on the industries in which we invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the adequacy of our cash resources, financing sources and working capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the timing and amount of cash flows, distributions and dividends, if any, from our portfolio companies;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;actual and potential conflicts of interest with the other funds managed by FS/EIG Advisor, Future Standard, EIG, or any of their respective affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the dependence of our future success on the general economy and its effect on the industries in which we may invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;general economic, political and industry trends and other external factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our use of financial leverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the ability of FS/EIG Advisor to locate suitable investments for us and to monitor and administer our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the ability of FS/EIG Advisor or its affiliates to attract and retain highly talented professionals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our distribution rate and intention to declare dividends, including with respect to the amount and timing of any such distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our ability to maintain our qualification as a RIC and as a BDC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the impact on our business of U.S. and international financial reform legislation, rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the effect of changes to tax legislation on us and the portfolio companies in which we may invest and our and their tax position; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;the tax status of the enterprises in which we may invest.

Words such as "anticipate," "believe," "expect" and "intend" indicate a forward-looking statement, although not all forward-looking statements include these words. The forward-looking statements contained in this quarterly report on Form 10-Q are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause our actual results to differ materially from those expressed or forecasted in the forward-looking statements for any reason, including the factors set forth in ''Item 1A. Risk Factors.'' Other factors that could cause actual results to differ materially include changes relating to those set forth above and the following, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;changes in the economy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;geo-political risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;risks associated with possible disruption in our operations or the economy generally due to terrorism, natural disasters or pandemics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;future changes in laws or regulations and conditions in our operating areas; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;our ability to pay the targeted distributions and/or obtain leverage on terms satisfactory to us.

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. You should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. Shareholders are advised to consult any additional disclosures that we may make directly to shareholders or through reports that we may file in the future with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The forward-looking statements and projections contained in this quarterly report on Form 10-Q are excluded from the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act.

**Overview**

We were formed as a Delaware statutory trust under the Delaware Statutory Trust Act on September 16, 2010 and formally commenced investment operations on July 18, 2011. We are an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act and has elected to be treated for U.S. federal income tax purposes, and intends to qualify annually, as a RIC under Subchapter M of the Code. In November 2016, we closed our continuous public offering of common shares to new investors.

Our investment activities are managed by FS/EIG Advisor and supervised by our board of trustees, a majority of whom are independent. Under the FS/EIG investment advisory agreement, we have agreed to pay FS/EIG Advisor an annual base management fee based on the average weekly value of our gross assets and an incentive fee based on our performance.

Our investment policy is to invest primarily in a portfolio of secured and unsecured floating and fixed rate loans, bonds and other types of credit instruments, which, under normal circumstances, will represent at least 80% of our total assets. This investment policy may not be changed without at least 60 days' prior notice to holders of our common shares of any such change.

Our investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. We intend to pursue our investment objectives by investing in both direct originations and broadly syndicated investments of secured and unsecured floating and fixed rate loans, bonds and other types of credit instruments. Investing in both direct originations and broadly syndicated investments allows us to be dynamic in our pursuit of opportunities across changing economic and credit cycles. We intend to focus on the following investment categories in an effort to generate returns for our investors with an acceptable level of risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;*Direct Originations*: Direct lending and innovative capital structure solutions to both sponsored and non-sponsored companies, typically based in the U.S. and operating within the middle market. These investments may include both debt and equity components.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;*Broadly Syndicated Loan and Bond Transactions*: Opportunistic investments into primary and secondary markets, broadly syndicated loans and bonds. Broadly syndicated loans and bonds are generally more liquid than our directly originated investments and provide a complement to our less liquid strategies. In the case of broadly syndicated investments, we generally intend to capitalize on market inefficiencies by investing in loans, bonds, and other asset classes where the market price of such investment reflects a lower value than we believe is warranted based on our fundamental analysis, providing us with an opportunity to earn an attractive return on our investment.

However, we may pursue other investment opportunities if we believe they are in our best interests and consistent with our investment objectives.

The majority of our portfolio is comprised of income-oriented securities, which principally refers to debt securities and other income-producing investments, of privately-held companies within the United States. Generally, in the long-term we expect to weight our investments more heavily towards directly originated investments, as this will provide us with the ability to tailor investments to best match a project's or company's needs with our investment objectives. However, our investment policy enables FS/EIG Advisor to opportunistically invest in broadly syndicated investments and dynamically adjust allocations between private and public markets depending on where the risk-adjusted returns are most attractive. We intend to weight our portfolio towards senior secured debt, which we believe offers opportunities for superior risk-adjusted returns and income generation. Our debt investments may take the form of corporate or project loans or bonds, may be secured or unsecured and may, in some cases, be accompanied by yield enhancements. These yield enhancements may include common equity, warrants, options, net profits interests, cash flow participations or other forms of equity participation that can provide additional consideration or "upside" in a transaction. A portion of our portfolio may be comprised of derivatives, including the use of total return swaps, credit default swaps and other swap contracts. In connection with certain of our debt investments or any restructuring of these debt investments, we may on occasion receive equity interests, including warrants or options, as additional consideration or otherwise in connection with a restructuring. We may also purchase select positions in equity positions. FS/EIG Advisor will seek to tailor our investment focus as market conditions evolve.

Our future financial condition, results of operations and cash flows may be impacted by the transition to a new investment policy.

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*Revenues*

The principal measure of our financial performance is net increase or decrease in net assets resulting from operations, which includes net investment income, net realized gain or loss on investments, foreign currency and swap contracts, net change in unrealized appreciation or depreciation on investments, net change in unrealized gain or loss on foreign currency and net change in unrealized appreciation or depreciation on swap contracts. Net investment income is the difference between our income from interest, dividends, fees and other investment income and our operating and other expenses. Net realized gain or loss on investments is the difference between the proceeds received from dispositions of portfolio investments and their amortized cost, including the respective realized gain or loss on foreign currency for those foreign denominated investment transactions. Net realized gain or loss on foreign currency is the portion of realized gain or loss attributable to non-investment related foreign currency fluctuations. Net realized gain or loss on swap contracts is the portion of realized gain or loss attributable to the difference between the fixed price specified in the contract and the referenced settlement price. Net change in unrealized appreciation or depreciation on investments is the net change in the fair value of our investment portfolio, including the respective unrealized gain or loss on foreign currency for those foreign denominated investments. Net change in unrealized gain or loss on foreign currency is the net change in the value of receivables or accruals due to the impact of foreign currency fluctuations. Net change in unrealized appreciation or depreciation on swap contracts is the net change in the value of receivables or accruals due to the impact of the difference between the fixed price specified in the contract and the referenced settlement price.

We principally generate revenues in the form of interest income on the debt investments we hold. We also generate revenues in the form of dividends and other distributions on the equity or other securities we may hold. In addition, we may generate revenues in the form of non-recurring commitment, closing, origination, structuring or diligence fees, fees for providing managerial assistance, consulting fees, prepayment fees and performance-based fees.

*Expenses*

Our primary operating expenses include the payment of management and incentive fees and other expenses under the FS/EIG investment advisory agreement, interest expense from financing arrangements and other indebtedness, and other expenses necessary for our operations. The management and incentive fees compensate FS/EIG Advisor for its work in identifying, evaluating, negotiating, executing, monitoring and servicing our investments.

FS/EIG Advisor oversees our day-to-day operations, including the provision of general ledger accounting, fund accounting, legal services, investor relations, certain government and regulatory affairs activities, and other administrative services. FS/EIG Advisor also performs, or oversees the performance of, our corporate operations and required administrative services, which includes being responsible for the financial records that we are required to maintain and preparing reports for our shareholders and reports filed with the SEC. In addition, FS/EIG Advisor assists us in calculating our net asset value, overseeing the preparation and filing of tax returns and the printing and dissemination of reports to our shareholders, and generally overseeing the payment of our expenses and the performance of administrative and professional services rendered to us by others.

We reimburse FS/EIG Advisor for expenses necessary to perform services related to our administration and operations, including FS/EIG Advisor's allocable portion of the compensation and related expenses of certain personnel of Future Standard and EIG providing administrative services to us on behalf of FS/EIG Advisor, and for transactional expenses for prospective investments, such as fees and expenses associated with performing due diligence reviews of investments that do not close, often referred to as "broken deal" costs. We reimburse FS/EIG Advisor no less than quarterly for all costs and expenses incurred by FS/EIG Advisor in performing its obligations and providing personnel under the FS/EIG investment advisory agreement. The amount of this reimbursement is set at the lesser of (1) FS/EIG Advisor's actual costs incurred in providing such services and (2) the amount that we estimate would be required to pay alternative service providers for comparable services in the same geographic location. FS/EIG Advisor allocates the cost of such services to us based on factors such as time allocations and other reasonable metrics. Our board of trustees reviews the methodology employed in determining how the expenses are allocated to us and assesses the reasonableness of such reimbursements for expenses allocated to us based on the breadth, depth and quality of such services as compared to the estimated cost to us of obtaining similar services from third-party service providers known to be available. In addition, our board of trustees considers whether any single third-party service provider would be capable of providing all such services at comparable cost and quality. Finally, our board of trustees compares the total amount paid to FS/EIG Advisor for such services as a percentage of our net assets to the same ratio as reported by other comparable BDCs. We do not reimburse FS/EIG Advisor for any services for which it receives a separate fee, or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of FS/EIG Advisor.

We bear all other expenses of our operations and transactions, including (without limitation) fees and expenses relating to all other expenses incurred by FS/EIG Advisor in connection with administering our business, including expenses incurred by FS/EIG Advisor in performing administrative services for us and administrative personnel paid by FS/EIG Advisor, to the extent they are not controlling persons of FS/EIG Advisor or any of its affiliates, subject to the limitations included in the FS/EIG investment advisory agreement.

In addition, we have contracted with State Street to provide various accounting and administrative services, including, but not limited to, preparing preliminary financial information for review by FS/EIG Advisor, preparing and monitoring expense budgets,

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maintaining accounting and corporate books and records, processing trade information provided by us and performing testing with respect to RIC compliance.

For information regarding the fee offset with FS/EIG Advisor, see Note 4 to our unaudited consolidated financial statements included herein.

**Expected Distributions**

Subject to applicable legal restrictions and the sole discretion of our board of trustees, we expect to provide enhanced quarterly distributions to shareholders until the achievement of a long-term liquidity event. The enhanced distribution rate for each quarter in 2024 represented an annualized distribution rate of approximately 10.0%, in each case based on the then-current estimated net asset value. We expect to provide enhanced quarterly distributions to shareholders representing an annualized distribution rate of approximately 12.5% and 15.0% based on estimated net asset value as of such quarter end for 2025 and 2026 and beyond, respectively, provided we have not achieved a long-term liquidity event. We expect a portion of these distributions to represent a return of investor capital, helping to accelerate liquidity for shareholders in the near-term. Our board of trustees has and will continue to evaluate our ability to pay any distributions in the future. There can be no assurance that we will be able to pay distributions in the future. The timing and amount of any future distributions to shareholders are subject to applicable legal restrictions and the sole discretion of our board of trustees.

**Portfolio Investment Activity for the Three and Six Months Ended June 30, 2025 and for the Year Ended December 31, 2024**

*Total Portfolio Activity*

The following tables present certain selected information regarding our portfolio investment activity for the three and six months ended June 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Net Investment Activity** | **For the Three Months Ended<br>June 30, 2025** | **For the Three Months Ended<br>June 30, 2025** | **For the Six Months Ended<br>June 30, 2025** | **For the Six Months Ended<br>June 30, 2025** |
| Purchases | $261568 | 261568 | $618910 | 618910 |
| Sales and Repayments | (441815) | (441815) | (827160) | (827160) |
| Net Portfolio Activity | $(180247) | (180247) | $(208250) | (208250) |
|  | **For the Three Months Ended<br>June 30, 2025** | **For the Three Months Ended<br>June 30, 2025** | **For the Six Months Ended<br>June 30, 2025** | **For the Six Months Ended<br>June 30, 2025** |
| **New Investment Activity by Asset Class** | **Purchases** | **Percentage** | **Purchases** | **Percentage** |
| Senior Secured Loans—First Lien | $204801 | 78% | $479018 | 77% |
| Senior Secured Loans—Second Lien |  |  |  |  |
| Senior Secured Bonds | 18075 | 7% | 18075 | 3% |
| Unsecured Debt |  |  |  |  |
| Asset Based Finance | 20538 | 8% | 42538 | 7% |
| Equity/Other | 18154 | 7% | 79279 | 13% |
| Total | $261568 | 100% | $618910 | 100% |

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The following table summarizes the composition of our investment portfolio at cost and fair value as of June 30, 2025 and December 31, 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025<br> (Unaudited)** | **June 30, 2025<br> (Unaudited)** | **June 30, 2025<br> (Unaudited)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Amortized <br>Cost**<sup>(1)</sup> | **Fair Value** | **Percentage <br>of Portfolio** | **Amortized <br>Cost**<sup>(1)</sup> | **Fair Value** | **Percentage <br>of Portfolio** |
| Senior Secured Loans—First Lien | $1374308 | $1356484 | 82% | $1456889 | $1445351 | 78% |
| Senior Secured Loans—Second Lien | 54108 | 50479 | 3% | 51604 | 49191 | 3% |
| Senior Secured Bonds | 66148 | 62634 | 4% | 104296 | 103726 | 6% |
| Unsecured Debt | 41047 | 41235 | 2% | 38785 | 38962 | 2% |
| Asset Based Finance | 46269 | 41911 | 3% | 49437 | 46171 | 2% |
| Equity/Other | 103042 | 93935 | 6% | 202778 | 159236 | 9% |
| Total | $1684922 | $1646678 | 100% | $1903789 | $1842637 | 100% |

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

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The following table presents certain selected information regarding the composition of our investment portfolio as of June 30, 2025 and December 31, 2024:

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Number of Portfolio Companies | 73 | 86 |
| % Variable Rate (based on fair value) | 86.0% | 81.3% |
| % Fixed Rate (based on fair value) | 8.3% | 10.0% |
| % Income Producing Equity/Other Investments (based on fair value) | 4.4% | 5.8% |
| % Non-Income Producing Equity/Other Investments (based on fair value) | 1.3% | 2.9% |
| Weighted Average Purchase Price of Debt Investments (as a % of par value) | 99.4% | 97.9% |
| % of Investments on Non-Accrual (based on fair value) | 0.2% | 1.1% |
| Gross Portfolio Yield Prior to Leverage (based on amortized cost) | 10.1% | 9.2% |
| Gross Portfolio Yield Prior to Leverage (based on amortized cost)—Excluding Non-Income Producing Assets | 10.5% | 9.8% |

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Subject to applicable legal restrictions and the sole discretion of our board of trustees, we expect to provide enhanced quarterly distributions to shareholders until the achievement of a long-term liquidity event. See "Expected Distributions" above for a discussion of the enhanced quarterly distributions paid and expected to be paid, subject to applicable legal restrictions and the sole discretion of our board of trustees. For the six months ended June 30, 2025 and the year ended December 31, 2024, our total return was 3.50% and 6.20%, respectively, and our total return without assuming reinvestment of distributions was 3.50% and 6.04%, respectively.

Our estimated gross portfolio yield and annualized distribution rate to shareholders do not represent actual investment returns to shareholders. Our gross annual portfolio yield and distribution rate to shareholders are subject to change and in the future may be greater or less than the rates set forth above. See the sections entitled "Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2024 and in our other periodic reports filed with the SEC for a discussion of the uncertainties, risks and assumptions associated with these statements.

*Direct Originations*

We define Direct Originations as any investment where FS/EIG Advisor or its affiliates negotiate the terms of the transaction beyond just the price, which, for example, may include negotiating financial covenants, maturity dates or interest rate terms. These Direct Originations include participation in other originated transactions where there may be third parties involved, or a bank acting as an intermediary, for a closely held club, or similar transactions.

The following table presents certain selected information regarding our Direct Originations as of June 30, 2025 and December 31, 2024:

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| | | |
|:---|:---|:---|
| **Characteristics of All Direct Originations held in Portfolio** | **June 30, 2025** | **December 31, 2024** |
| Number of Portfolio Companies | 45 | 40 |
| % of Investments on Non-Accrual (based on fair value) | 0.4% | 0.5% |
| Total Cost of Direct Originations | $1107899 | $1001354 |
| Total Fair Value of Direct Originations | $1091460 | $953612 |
| % of Total Investments, at Fair Value | 66.3% | 51.8% |
| Gross Portfolio Yield Prior to Leverage (based on amortized cost) of Funded Direct Originations | 10.0% | 8.9% |
| Gross Portfolio Yield Prior to Leverage (based on amortized cost) of Funded Direct Originations—Excluding Non-Income Producing Assets | 10.4% | 9.7% |

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*Portfolio Composition by Strategy*

The table below summarizes the composition of our investment portfolio by strategy and enumerates the percentage, by fair value, of the total portfolio assets in such strategies as of June 30, 2025 and December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Portfolio Composition by Strategy** | **Fair Value** | **Percentage**<br>**of Portfolio** | **Fair Value** | **Percentage**<br>**of Portfolio** |
| Direct Originations | $1091460 | 66% | $953612 | 52% |
| Broadly Syndicated/Other | 555218 | 34% | 889025 | 48% |
| Total | $1646678 | 100% | $1842637 | 100% |

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See Note 7 to our unaudited consolidated financial statements included herein for additional information regarding our investment portfolio.

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**Portfolio Asset Quality**

In addition to various risk management and monitoring tools, FS/EIG Advisor uses an investment rating system to characterize and monitor the expected level of returns on each investment in our portfolio. FS/EIG Advisor uses an investment rating scale of 1 to 5. The following is a description of the conditions associated with each investment rating:

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| | |
|:---|:---|
| **Investment Rating** | **Summary Description** |
| &nbsp;&nbsp;1 | Investment exceeding expectations and/or capital gain expected. |
| &nbsp;&nbsp;2 | Performing investment generally executing in accordance with the portfolio company's business plan—full return of principal and interest expected. |
| &nbsp;&nbsp;3 | Performing investment requiring closer monitoring. |
| &nbsp;&nbsp;4 | Underperforming investment—some loss of interest or dividend possible, but still expecting a positive return on investment. |
| &nbsp;&nbsp;5 | Underperforming investment with expected loss of interest and some principal. |

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The following table shows the distribution of our investments on the 1 to 5 investment rating scale at fair value as of June 30, 2025 and December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>**Investment Rating** | **Fair Value** | **Percentage <br>of Portfolio** | **Fair Value** | **Percentage <br>of Portfolio** |
| &nbsp;&nbsp;1 | $— |  | $— |  |
| &nbsp;&nbsp;2 | 1472638 | 89% | 1687410 | 92% |
| &nbsp;&nbsp;3 | 130537 | 8% | 42047 | 2% |
| &nbsp;&nbsp;4 | 43114 | 3% | 104898 | 6% |
| &nbsp;&nbsp;5 | 389 | 0% | 8282 | 0% |
| Total | $1646678 | 100% | $1842637 | 100% |

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The amount of the portfolio in each grading category may vary substantially from period to period resulting primarily from changes in the composition of the portfolio as a result of new investment, repayment and exit activities. In addition, changes in the grade of investments may be made to reflect our expectation of performance and changes in investment values.

**Results of Operations**

**Comparison of the Three and Six Months Ended June 30, 2025 and 2024**

*Revenues*

Our investment income for the three and six months ended June 30, 2025 and 2024 was as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2025** | **2024** | **2024** | **2025** | **2025** | **2024** | **2024** |
| | **Amount** | **Percentage of<br>Total Income** | **Amount** | **Percentage of<br>Total Income** | **Amount** | **Percentage of<br>Total Income** | **Amount** | **Percentage of<br>Total Income** |
| Interest income | $45387 | 89% | $44364 | 88% | $86608 | 87% | $107204 | 90% |
| Paid-in-kind interest income | 3639 | 7% | 3999 | 8% | 6884 | 7% | 5647 | 5% |
| Fee income | 653 | 1% | 1233 | 3% | 2035 | 2% | 1645 | 1% |
| Dividend income | 1339 | 3% | 690 | 1% | 4029 | 4% | 5040 | 4% |
| Total investment income<sup>(1)</sup> | $51018 | 100% | $50286 | 100% | $99556 | 100% | $119536 | 100% |

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(1) &nbsp;&nbsp;&nbsp;&nbsp;Such revenues represent $44,118 and $43,528 of cash income earned as well as $6,900 and $6,758 in non-cash portions relating to accretion of discount and PIK interest for the three months ended June 30, 2025 and 2024, respectively, and represent $86,789 and $108,969 of cash income earned as well as $12,767 and $10,567 in non-cash portions relating to accretion of discount and PIK interest for the six months ended June 30, 2025 and 2024, respectively. Cash flows related to such non-cash revenues may not occur for a number of reporting periods or years after such revenues are recognized.

The level of interest income we receive is generally related to the balance of income-producing investments multiplied by the weighted average yield of our investments. We may experience volatility in the amount of interest income that we earn as the accrual status of existing portfolio investments may fluctuate due to restructuring activity in the portfolio.

The decrease in the amount of interest income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to one time interest received on certain preferred equity positions during the six months ended June

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30, 2024. Preferred equity positions may be treated as debt for GAAP or tax purposes. The increase in the amount of PIK income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to the acquisition of certain investments earning PIK income.

Fee income is transaction based, and typically consists of prepayment fees and structuring fees. As such, future fee income is generally dependent on new direct origination investments and the occurrence of events at existing portfolio companies resulting in such fees. The increase in the amount of fee income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to the increase in miscellaneous fees during the period.

The decrease in the amount of dividend income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to the decrease in dividends paid with respect to our investments in certain common equities.

*Expenses*

Our operating expenses for the three and six months ended June 30, 2025 and 2024 were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Management fees | $8662 | $8965 | $17532 | $18077 |
| Administrative services expenses | 1267 | 1535 | 2520 | 3070 |
| Share transfer agent fees | 802 | 919 | 1595 | 1838 |
| Accounting and administrative fees | 156 | 179 | 334 | 304 |
| Interest expense | 8413 | 9040 | 17494 | 18124 |
| Trustees' fees | 195 | 164 | 359 | 328 |
| Listing advisory fees | 1570 |  | 1570 |  |
| Expenses associated with our independent audit and related fees | 191 | 141 | 320 | 281 |
| Legal fees | 428 | 470 | 743 | 691 |
| Printing fees | 1267 | 172 | 1470 | 452 |
| Other | 635 | 444 | 1061 | 901 |
| Total operating expenses | 23586 | 22029 | 44998 | 44066 |
| &nbsp;&nbsp;Less: Management fee offset |  | (3) |  | (3) |
| Net operating expenses before taxes | 23586 | 22026 | 44998 | 44063 |
| &nbsp;&nbsp;Federal and state taxes | 40 | 16 | 43 | 809 |
| Total net expenses, including federal and state taxes | $23626 | $22042 | $45041 | $44872 |

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The following table reflects selected expense ratios as a percent of average net assets for the three and six months ended June 30, 2025 and 2024 (not annualized):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Ratio of operating expenses and federal and state taxes to average net assets | 1.57% | 1.41% | 2.98% | 2.86% |
| Ratio of management fee offset to average net assets |  | (0.00) |  | (0.00)% |
| Ratio of net operating expenses and federal and state taxes to average net assets | 1.57% | 1.41% | 2.98% | 2.86% |
| Ratio of interest expense and federal and state taxes to average net assets | (0.56)% | (0.58)% | (1.16)% | (1.21)% |
| Ratio of net operating expenses, excluding certain expenses, to average net assets | 1.01% | 0.83% | 1.82% | 1.65% |

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Interest expense may increase or decrease our expense ratios relative to comparative periods depending on changes in benchmark interest rates such as SOFR, leverage utilization rates and the terms of our financing arrangements, among other factors. We incurred one-time, non-recurring expenses of $2,991 and $2,991, in connection with the reorganization and anticipated listing on the NYSE, including listing advisory fees of $1,570 and $1,570 and other expenses during the three and six months ended June 30, 2025, respectively.

*Management Fee Offset*

Structuring, upfront or certain other fees received by FS/EIG Advisor or its members which were offset against management fees due to FS/EIG Advisor from us were $0 and $3 for the three and six months ended June 30, 2025 and 2024, respectively. See Note 4 to our unaudited consolidated financial statements contained in this quarterly report on Form 10-Q for a discussion of the management fee offset for the three and six months ended June 30, 2025 and 2024.

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*Net Investment Income*

Our net investment income totaled $27,392 ($0.36 per share) and $28,244 ($0.37 per share) for the three months ended June 30, 2025 and 2024, respectively, and $54,515 ($0.72 per share) and $74,664 ($0.98 per share) for the six months ended June 30, 2025 and 2024, respectively.

*Net Realized Gains or Losses*

Our net realized gains (losses) on investments, foreign currency and swap contracts for the three and six months ended June 30, 2025 and 2024, were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net realized gain (loss) on investments<sup>(1)</sup> | $(14337) | $8101 | $(23384) | $12291 |
| Net change in realized gain (loss) on foreign currency | (63) |  | (87) |  |
| Net realized gain (loss) on swap contracts | (325) | 3900 | 84 | 6227 |
| Net realized gain (loss) on forward foreign currency exchange contracts | (1046) |  | (1046) |  |
| Total net realized gain (loss) | $(15771) | $12001 | $(24433) | $18518 |

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*_________________________*

(1)&nbsp;&nbsp;&nbsp;&nbsp;We sold investments and received principal repayments, other than short-term investments and U.S. government obligations, of $355,505 and $86,310, respectively, during the three months ended June 30, 2025 and $351,590 and $107,700, respectively, during the three months ended June 30, 2024. We sold investments and received principal repayments of $646,345 and $180,815, respectively, during the six months ended June 30, 2025 and $420,337 and $171,070, respectively, during the six months ended June 30, 2024.

*Net Change in Unrealized Appreciation (Depreciation)*

Our net change in unrealized appreciation (depreciation) on investments, swap contracts and foreign currency for the three and six months ended June 30, 2025 and 2024 were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net change in unrealized appreciation (depreciation) on investments | $6801 | $1204 | $22908 | $(33809) |
| Net change in unrealized appreciation (depreciation) on swap contracts | 190 | 29 | (70) | 225 |
| Net change in unrealized appreciation (depreciation) on foreign currency | 26 | (4) | 26 | (13) |
| Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts | (428) |  | (305) |  |
| Total net change in unrealized appreciation (depreciation) | $6589 | $1229 | $22559 | $(33597) |

---

During the three and six months ended June 30, 2025 and 2024, the net change in unrealized appreciation (depreciation) on our investments was primarily driven by the performance of our directly originated assets and certain of our equity/other investments.

*Net Increase (Decrease) in Net Assets Resulting from Operations*

For the three months ended June 30, 2025 and 2024, the net increase (decrease) in net assets resulting from operations was $18,210 ($0.24 per share) and $41,474 ($0.55 per share), respectively. For the six months ended June 30, 2025 and 2024, the net increase (decrease) in net assets resulting from operations was $52,641 ($0.69 per share) and $59,585 ($0.78 per share), respectively.

This "Results of Operations" section should be read in conjunction with "Expected Distributions" above.

**Financial Condition, Liquidity and Capital Resources**

*Overview*

As of June 30, 2025, we had $233,257 in cash and cash equivalents and foreign currency, which we held in custodial accounts and a money market fund, and $100,000 in borrowings available under our financing arrangement. As of June 30, 2025, we also had broadly syndicated investments that could be sold to create additional liquidity. As of June 30, 2025, we had 22 senior secured loan investments with aggregate unfunded commitments of $95,033. We maintain sufficient cash on hand, available borrowings and/or liquid securities to fund such unfunded commitments and other contractual commitments should the need arise.

We generate cash primarily from cash flows from fees, interest and dividends earned from our investments as well as principal repayments and proceeds from sales of our investments. To seek to enhance our returns, we may also seek to employ leverage as market conditions permit and at the discretion of FS/EIG Advisor, but unless and until we elect otherwise, as permitted by the 1940 Act, in no event will leverage employed exceed 50% of the value of our assets, as required by the 1940 Act.

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Prior to investing in securities of portfolio companies, we invest the net proceeds from sales and paydowns of existing investments primarily in cash, cash equivalents, including money market funds, U.S. government securities, repurchase agreements and high-quality debt instruments maturing in one year or less from the time of investment, consistent with our BDC election and our election to be taxed as a RIC.

This "Financial Condition, Liquidity and Capital Resources" section should be read in conjunction with "Expected Distributions" above and "—Financing Arrangement" below.

*Financing Arrangement*

The following table presents a summary of information with respect to our outstanding financing arrangement as of June 30, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Arrangement**<sup>(1)</sup> | **Type of** <br>**Arrangement** | **Rate**<sup>(2)</sup> | **Amount <br>Outstanding** | **Amount <br>Available** | **Maturity Date**<sup>(3)</sup> |
| Barclays Facility | Repurchase | Term SOFR+3.00% | $400000 | $100000 | September 6, 2026 |

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______________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;The carrying amount outstanding under the facility approximates its fair value, unless otherwise noted.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The financing fee under the Barclays Facility is based on three-month term SOFR (with a floor of 0.00%) plus a facility margin calculated monthly as the weighted average of the individual margin of the collateral obligations (subject to a floor, in the aggregate, of 3.00%).

(3)&nbsp;&nbsp;&nbsp;&nbsp;On August 12, 2025, Barclays entered into an amendment to the Barclays Facility with us to extend the maturity date to August 12, 2028.

For additional information regarding our financing arrangements, see Note 9 to our unaudited consolidated financial statements included herein.

**RIC Tax Treatment and Distributions**

We have elected to be treated for U.S. federal income tax purposes, and intend to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, we generally do not have to pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that we distribute as dividends to our shareholders. To maintain our qualification as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements. In addition, in order to maintain RIC tax treatment, we must distribute to our shareholders, for each tax year, dividends generally of an amount at least equal to 90% of our "investment company taxable income," which is generally the sum of our net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses, determined without regard to any deduction for dividends paid. In addition, we may, in certain cases, satisfy the Annual Distribution Requirement by distributing dividends relating to a tax year after the close of such tax year under the "spillover dividend" provisions of Subchapter M of the Code. If we distribute a spillover dividend, such dividend will be included in a shareholder's gross income for the tax year in which the spillover distribution is paid. We intend to make sufficient distributions to our shareholders to maintain our RIC tax treatment each tax year. We will also be subject to nondeductible U.S. federal excise taxes on certain undistributed income unless we distribute in a timely manner to our shareholders of an amount at least equal to the sum of (1) 98% of our net ordinary taxable income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gain net income, which is the excess of capital gains over capital losses (adjusted for certain ordinary losses), for the one-year period ending October 31 of that calendar year and (3) 100% of any ordinary income and capital gain net income recognized for the preceding years that were not distributed during such years and on which we paid no U.S. federal income tax. Any distribution declared by us during October, November or December of any calendar year, payable to our shareholders of record on a specified date in such a month and actually paid during January of the following calendar year, will be treated as if it had been paid by us, as well as received by our U.S. shareholders, on December 31 of the calendar year in which the distribution was declared.

In general, when we pay regular cash distributions, we intend to declare them on a quarterly or monthly basis and pay them on a monthly basis. We will calculate each shareholder's specific distribution amount for the period using record and declaration dates and each shareholder's distributions will begin to accrue on the date that common shares are issued to such shareholder. From time to time, we may also pay special interim distributions in the form of cash or common shares at the discretion of our board of trustees. The timing and amount of any future distributions to shareholders are subject to applicable legal restrictions and the sole discretion of our board of trustees.

Our distribution proceeds have exceeded and in the future are expected to exceed our earnings. Therefore, portions of the distributions that we have made represented, and may make in the future are expected to represent, a return of capital to shareholders, which lowers their tax basis in their common shares. A return of capital generally is a return of an investor's investment rather than a return of earnings or gains derived from our investment activities and will be made after deducting the fees and expenses payable in connection with our continuous public offering, including any fees payable to FS/EIG Advisor. Moreover, a return of capital will generally not be taxable, but will reduce each shareholder's cost basis in our common shares, and will result in a higher reported capital gain or lower reported capital loss when the common shares on which such return of capital was received are sold. Each year a statement on Form 1099-DIV identifying the sources of the distributions will be mailed to our shareholders.

We intend to make any regular distributions in the form of cash, out of assets legally available for distribution.

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Subject to applicable legal restrictions and the sole discretion of our board of trustees, we expect to provide enhanced quarterly distributions to shareholders until the achievement of a long-term liquidity event. We expect to provide enhanced quarterly distributions to shareholders representing an annualized distribution rate of approximately 12.5% and 15.0% based on estimated net asset value as of such quarter end for 2025, and 2026 and beyond, respectively, provided we have not achieved a long-term liquidity event. We expect a portion of these distributions to represent a return of investor capital, helping to accelerate liquidity for shareholders in the near-term. Our board of trustees has and will continue to evaluate our ability to pay any distributions in the future. There can be no assurance that we will be able to pay distributions in the future. The timing and amount of any future distributions to shareholders are subject to applicable legal restrictions and the sole discretion of our board of trustees.

The following table reflects the cash distributions per share that we have declared on our common shares:

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| | | |
|:---|:---|:---|
| | **Distribution** | **Distribution** |
|<br>**For the Three Months Ended** | **Per Share**<sup>(2)</sup> | **Amount** |
| **Fiscal 2024** | | |
| &nbsp;&nbsp;March 31, 2024<sup>(1)</sup> | $0.0204 | $1549 |
| &nbsp;&nbsp;&nbsp;June 30, 2024 | 0.5196 | 39447 |
| &nbsp;&nbsp;&nbsp;Total | $0.5400 | $40996 |
| **Fiscal 2025** |  |  |
| &nbsp;&nbsp;March 31, 2025<sup>(1)</sup> | $0.0408 | $3097 |
| &nbsp;&nbsp;&nbsp;June 30, 2025 | 0.6318 | 47965 |
| &nbsp;&nbsp;&nbsp;Total | $0.6726 | $51062 |

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______________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;For the quarter ended December 31, 2024, the distribution amount per share was $0.4926, comprised of an initial distribution per share of $0.4518 declared in December 2024 and the remaining distribution per share of $0.0408 declared in January 2025, collectively representing an annualized distribution rate to shareholders of approximately 10.0%. For the quarter ended December 31, 2023, the distribution amount per share was $0.3858, comprised of an initial distribution per share of $0.3654 declared in December 2023 and the remaining distribution per share of $0.0204 declared in January 2024, collectively representing an annualized distribution rate to shareholders of approximately 7.5%.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The amount of each per share distribution has been retroactively adjusted to reflect the reverse share split as discussed in Notes 1 and 3 to our unaudited consolidated financial statements included herein.

See Note 5 to our unaudited consolidated financial statements included herein for additional information regarding our distributions.

**Recent Developments**

*Barclays Facility*

On August 12, 2025, we entered into an agreement to amend the Barclays Facility to, among other things, (i) increase the maximum facility size from $500,000 to $650,000 and (ii) extend the maturity date to August 12, 2028. See Note 9 to our unaudited consolidated financial statements included herein for additional information regarding our financing arrangement.

**Critical Accounting Policies and Estimates**

Our financial statements are prepared in conformity with GAAP, which requires us 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 revenues and expenses during the reporting periods. Management has utilized available information, including our past history, industry standards and the current economic environment, among other factors, in forming the estimates and judgments, giving due consideration to materiality. Actual results may differ from these estimates. In addition, other companies may utilize different estimates, which may impact the comparability of our results of operations to those of companies in similar businesses. Understanding our accounting policies and the extent to which we use management judgment and estimates in applying these policies is integral to understanding our financial statements. We describe our most significant accounting policies in Note 2 to our unaudited consolidated financial statements included herein. Critical accounting policies are those that require the application of management's most difficult, subjective or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain and that may change in subsequent periods. We evaluate our critical accounting estimates and judgments required by our policies on an ongoing basis and update them as necessary based on changing conditions. We have identified one of our accounting policies, valuation of portfolio investments, as critical because it involves significant judgments and assumptions about highly complex and inherently uncertain matters, and the use of reasonably different estimates and assumptions could have a material impact on our reported results of operations or financial condition. As we execute our operating plans, we will describe additional critical accounting policies in the notes to our future financial statements in addition to those discussed below.

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*Valuation of Portfolio Investments*

Our board of trustees is responsible for overseeing the valuation of our portfolio investments at fair value as determined in good faith pursuant to FS/EIG Advisor's valuation policy. As permitted by Rule 2a-5 of the 1940 Act, our board of trustees has designated FS/EIG Advisor as our valuation designee, with day-to-day responsibility for implementing the portfolio valuation process set forth in FS/EIG Advisor's valuation policy.

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

FS/EIG Advisor determines the fair value of our investment portfolio each quarter. Securities that are publicly-traded with readily available market prices will be valued at the reported closing price on the valuation date. Securities that are not publicly-traded with readily available market prices will be valued at fair value as determined in good faith by FS/EIG Advisor. In connection with that determination, FS/EIG Advisor will prepare portfolio company valuations which are based on relevant inputs, including, but not limited to, indicative dealer quotes, values of like securities, recent portfolio company financial statements and forecasts, and valuations prepared by independent third-party pricing and valuation services.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our quarterly fair valuation process begins with FS/EIG Advisor facilitating the delivery of updated quarterly financial and other information relating to each investment to an independent third-party pricing or valuation service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* the independent third-party pricing or valuation service then reviews and analyzes the information, along with relevant market and economic data, and determines proposed valuations for each portfolio company or investment according to the valuation methodologies in FS/EIG Advisor's valuation policy and communicates the information to FS/EIG Advisor in the form of a valuation range for Level 3 assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• FS/EIG Advisor then reviews the preliminary valuation information for each portfolio company or investment and provides feedback about the accuracy, completeness and timeliness of the valuation-related inputs considered by the independent third-party pricing or valuation service and any suggested revisions thereto prior to the independent third-party pricing or valuation service finalizing its valuation range;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* FS/EIG Advisor then provides the valuation committee with its valuation determinations and valuation-related information for each portfolio company or investment, along with any applicable supporting materials; and other information that is relevant to the fair valuation process as required by FS/EIG Advisor's board reporting obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the valuation committee meets with FS/EIG Advisor to receive the relevant quarterly reporting from FS/EIG Advisor and to discuss any questions from the valuation committee in connection with the valuation committee's role in overseeing the fair valuation process; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• following the completion of its fair value oversight activities, the valuation committee (with the assistance of FS/EIG Advisor) provides our board of trustees with a report regarding the quarterly valuation process.

Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations and any change in such valuations on our consolidated financial statements. In making its determination of fair value, FS/EIG Advisor may use any independent third-party pricing or valuation services for which it has performed the appropriate level of due diligence. However, FS/EIG Advisor is not required to determine fair value in accordance with the valuation provided by any single source, and may use any relevant data, including information sourced by FS/EIG Advisor or provided by any independent third-party pricing or valuation service that FS/EIG Advisor deems to be reliable in determining fair value under the circumstances. Below is a description of factors that FS/EIG Advisor and any independent third-party valuation services may consider when determining the fair value of our investments.

The valuation methods utilized for each portfolio company may vary depending on industry and company-specific considerations. Typically, the first step is to make an assessment as to the enterprise value of the portfolio company's business in order to establish whether the portfolio company's enterprise value is greater than the amount of its debt as of the valuation date. This analysis helps to determine a risk profile for the applicable portfolio company and its related investments, and the appropriate valuation methodology to utilize as part of the security valuation analysis. The enterprise valuation may be determined using a market or income approach.

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Valuation of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms of the debt. For investments without readily available market prices, FS/EIG Advisor may incorporate these factors into discounted cash flow models to arrive at fair value. Various methods may be used to determine the appropriate discount rate in a discounted cash flow model. Other factors that may be considered include the borrower's ability to adequately service its debt, the fair market value of the borrower in relation to the face amount of its outstanding debt and the quality of collateral securing the debt investments.

For convertible debt securities, fair value generally approximates the fair value of the debt plus the fair value of an option to purchase the underlying security (i.e., the security into which the debt may convert) at the conversion price. To value such an option, a standard option pricing model may be used.

Valuation of CLO subordinated notes considers a variety of relevant factors, including recent purchases and sales known to FS/EIG Advisor in similar securities and output from a third-party financial model. The third-party financial model contains detailed information on the characteristics of CLOs, including recent information about assets and liabilities, and is used to project future cash flows. Key inputs to the model include assumptions for future loan default rates, recovery rates, prepayment rates, reinvestment rates and discount rates. These are determined by considering both observable and third-party market data and prevailing general market assumptions and conventions.

Our equity interests in portfolio companies for which there is no liquid public market are valued at fair value. Generally, the value of our equity interests in public companies for which market quotations are readily available is based upon the most recent closing public market price.

When we receive warrants or other equity securities at nominal or no additional cost in connection with an investment in a debt security, the cost basis in the investment will be allocated between the debt securities and any such warrants or other equity securities received at the time of origination. FS/EIG Advisor subsequently values these warrants or other equity securities received at their fair value.

Forward foreign currency exchange contracts typically will be valued at their quoted daily prices obtained from an independent third party. Futures contracts traded on exchanges typically will be valued daily at their last sale price. Swap contracts typically are valued at their daily prices obtained from an independent third party. The aggregate settlement values and notional amounts of the swap contracts are not recorded in the consolidated balance sheets. Fluctuations in the value of the swap contracts are recorded in the consolidated balance sheets as gross assets and gross liabilities and in the statements of operations as unrealized appreciation (depreciation) until closed, when they will be recorded as net realized gain (loss).

See Note 8 to our unaudited consolidated financial statements included herein for additional information regarding the fair value of our financial instruments.

**Contractual Obligations**

We have entered into an agreement with FS/EIG Advisor to provide us with investment advisory and administrative services. Payments for investment advisory services under the FS/EIG investment advisory agreement are equal to 1.75% of the average weekly value of our gross assets and an incentive fee based on our performance. Base management fees are generally paid on a quarterly basis in arrears. FS/EIG Advisor is reimbursed for administrative services expenses incurred on our behalf. See Note 4 to our unaudited consolidated financial statements included herein for a discussion of this agreement and for the amount of fees and expenses accrued under this agreement during the six months ended June 30, 2025 and 2024.

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

We are subject to financial market risks, including changes in interest rates. As of June 30, 2025, 86.0% of our portfolio investments (based on fair value) paid variable interest rates, 8.3% paid fixed interest rates, 4.4% were income producing equity/other investments and the remaining 1.3% consisted of non-income producing equity/other investments. A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to any variable rate investments we hold and to declines in the value of any fixed rate investments we hold. However, many of our variable rate investments provide for an interest rate floor, which may prevent our interest income from increasing until benchmark interest rates increase beyond a threshold amount. To the extent that a substantial portion of our investments may be in variable rate investments, an increase in interest rates beyond this threshold would make it easier for us to meet or exceed the hurdle rate applicable to the subordinated incentive fee on income, and may result in a substantial increase in our net investment income and the amount of incentive fees payable to FS/EIG Advisor with respect to our increased pre-incentive fee net investment income.

Pursuant to the terms of the Barclays Facility, we borrow at a floating rate based on a benchmark interest rate. To the extent that any present or future credit facilities or other financing arrangements that we or any of our subsidiaries enter into are based on a floating interest rate, we will be subject to risks relating to changes in market interest rates. In periods of rising interest rates when we or our subsidiaries have such debt outstanding or financing arrangements in effect, our interest expense would increase, which could reduce our net investment income, especially to the extent we hold fixed rate investments.

The following table shows the effect over a twelve-month period of changes in interest rates on our interest income, interest expense and net interest income, assuming no changes in the composition of our investment portfolio, including the accrual status of our investments, and our financing arrangement in effect as of June 30, 2025 (dollar amounts are presented in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Basis Point Change in Interest Rates** | **Increase (Decrease) in**<br>**Interest Income**<sup>(1)</sup> | **Increase (Decrease) in**<br>**Interest Expense**<sup>(2)</sup> | **Increase (Decrease) in**<br>**Net Interest Income** | **Percentage Change in<br>Net Interest Income** |
| Down 100 basis points | $(23674) | $(4000) | $(19674) | (14.7)% |
| No change |  |  |  |  |
| Up 100 basis points | $3132 | $4000 | $(868) | (0.7)% |
| Up 300 basis points | $29941 | $12000 | $17941 | 13.4% |
| Up 500 basis points | $56751 | $20000 | $36751 | 27.4% |

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(1) &nbsp;&nbsp;&nbsp;&nbsp;Assumes no defaults or prepayments by portfolio companies over the next twelve months.

(2) &nbsp;&nbsp;&nbsp;&nbsp;Assumes current debt outstanding as of June 30, 2025, and no changes over the next twelve months.

We expect that our long-term investments will be financed primarily with equity and debt. If deemed prudent, we may use interest rate risk management techniques in an effort to minimize our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. During the six months ended June 30, 2025 and 2024, we did not engage in interest rate hedging activities.

*Foreign Currency Risk*

From time to time, we may make investments that are denominated in a foreign currency that are subject to the effects of exchange rate movements between the foreign currency of each such investment and the U.S. dollar, which may affect future fair values and cash flows, as well as amounts translated into U.S. dollars for inclusion in our consolidated financial statements.

In addition, we may have risks regarding portfolio valuation and the potential inability of counterparties to meet the terms of their contracts. See "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates—Valuation of Portfolio Investments."

**Item 4. Controls and Procedures.**

As required by Rule 13a-15(b) under the Exchange Act, we carried out an evaluation under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2025. Based on the foregoing, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that we would meet our disclosure obligations.

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) under the Exchange Act) that occurred during the three month period ended June 30, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings.**

We are not currently subject to any material legal proceedings and, to our knowledge, no material legal proceedings are threatened against us. From time to time, we may be party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of any legal proceedings cannot be predicted with certainty, we do not expect that any such proceedings will have a material effect upon our financial condition or results of operations.

**Item 1A. Risk Factors.**

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors that appeared under Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K. There are no material changes from the risk factors included within our most recent Annual Report on Form 10-K.

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

Not applicable.

**Item 3. Defaults upon Senior Securities.**

Not applicable.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

*Rule 10b5-1 Trading Plans*

During the fiscal quarter ended June 30, 2025, no director or officer (as defined in Rule 16a-1(f) of the Exchange Act) of the Company adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

*Barclays Facility* 

On August 12, 2025, we entered into an agreement to amend the Barclays Facility to, among other things, (i) increase the maximum facility size from $500,000 to $650,000 and (ii) extend the maturity date to August 12, 2028. See Note 9 to our unaudited consolidated financial statements included herein for additional information regarding our financing arrangement.

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**Item 6. Exhibits.**

2.1\*&nbsp;&nbsp;&nbsp;&nbsp;<u>[Agreement and Plan of Reorganization dated as of April 22, 2025, among FS Specialty Lending Fund, New FS Specialty Lending Fund, and, for the limited purposes set forth therein, FS/EIG Advisor, LLC.](ex21q22025.htm)</u>

10.1\*&nbsp;&nbsp;&nbsp;&nbsp;<u>[Amendment No. 1 to the Barclays Repurchase Agreement, dated as of August 12, 2025 by and among FS Specialty Lending Fund, Barclays Bank PLC and Computershare Trust Company, N.A](ex-101q22025.htm)[.](ex-101q22025.htm)</u>

31.1\*&nbsp;&nbsp;&nbsp;&nbsp;<u>[Certification of Chief Executive Officer pursuant to Rule 13a-14 under the Securities Exchange Act of 1934, as amended.](ex-311q22025.htm)</u>

31.2\*&nbsp;&nbsp;&nbsp;&nbsp;<u>[Certification of Chief Financial Officer pursuant to Rule 13a-14 under the Securities Exchange Act of 1934, as amended.](ex-312q22025.htm)</u>

32.1\*&nbsp;&nbsp;&nbsp;&nbsp;<u>[Certification of Chief Executive Officer and Chief Financial Officer 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.](ex-321q22025.htm)</u>

101. INS\*&nbsp;&nbsp;&nbsp;&nbsp;Inline XBRL Instance Document

101. SCH\*&nbsp;&nbsp;&nbsp;&nbsp;Inline XBRL Taxonomy Extension Schema Document

101. CAL\*&nbsp;&nbsp;&nbsp;&nbsp;Inline XBRL Taxonomy Extension Calculation Linkbase Document

101. DEF\*&nbsp;&nbsp;&nbsp;&nbsp;Inline XBRL Taxonomy Extension Definition Linkbase Document

101. LAB\*&nbsp;&nbsp;&nbsp;&nbsp;Inline XBRL Taxonomy Extension Label Linkbase Document

101. PRE\*&nbsp;&nbsp;&nbsp;&nbsp;Inline XBRL Taxonomy Extension Presentation Linkbase Document

104&nbsp;&nbsp;&nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document)

_______________

\*&nbsp;&nbsp;&nbsp;&nbsp;Filed herewith.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on August 14, 2025.

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| | |
|:---|:---|
| FS Specialty Lending Fund | FS Specialty Lending Fund |
| By: | /s/ MICHAEL C. FORMAN |
|  | Michael C. Forman <br>Chief Executive Officer <br>(Principal Executive Officer) |
| By: | /s/ EDWARD T. GALLIVAN, JR. |
|  | Edward T. Gallivan, Jr. <br>Chief Financial Officer <br>(Principal Financial and Accounting Officer) |

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## Exhibit 2.1

**AGREEMENT AND PLAN OF REORGANIZATION**

THIS AGREEMENT AND PLAN OF REORGANIZATION (the "<u>Agreement</u>") is made as of this 22nd day of April, 2025 by and among New FS Specialty Lending Fund (the "<u>Successor Fund</u>"), a newly created statutory business trust formed under the laws of the State of Delaware, FS Specialty Lending Fund (the "<u>Predecessor Fund</u>") and, for purposes of Section 1.3 of this Agreement only, FS/EIG Advisor, LLC, a Delaware limited liability company and investment adviser to the Fund (the "<u>Adviser</u>"). The Successor Fund and the Predecessor Fund may be referred to herein individually as a "<u>Fund</u>" and, collectively, as the "<u>Funds</u>."

This Agreement is intended to be, and is adopted as, a plan of reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), and the Treasury Regulations promulgated thereunder.

The reorganization of the Predecessor Fund will consist of the merger of the Predecessor Fund with and into the Successor Fund pursuant to which holders (collectively, "<u>Predecessor Fund Shareholders</u>") of common shares of beneficial interest, par value $0.001 per share, of the Predecessor Fund (the "<u>Predecessor Fund Shares</u>") will receive newly issued common shares of beneficial interest, par value $0.001 per share, of the Successor Fund ("<u>Successor Fund Shares</u>") as provided herein, all upon the terms and conditions set forth in this Agreement (the "<u>Merger</u>").

WHEREAS, the Successor Fund currently has no assets and has carried on no business activities prior to the date first shown above and will have had no or de minimis assets and will have carried on no business activities prior to the consummation of the transactions described herein, other than as necessary to complete the transactions contemplated hereby; and

WHEREAS, the Successor Fund is authorized to issue the Successor Fund Shares.

NOW, THEREFORE, in consideration of the premises and of the covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows:

**Article I<u><br>MERGER</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Merger</u>. Subject to the terms and conditions contained herein and on the basis of the representations and warranties contained herein, and in accordance with the Delaware Statutory Trust Act (the "<u>DSTA</u>"), at the Effective Time (as defined in <u>Section 1.1(e)</u>), the Predecessor Fund shall be merged with and into the Successor Fund, the separate corporate existence of the Predecessor Fund shall cease and the Successor Fund shall be the surviving company in the Merger (sometimes referred to herein as the "<u>Surviving Company</u>") in accordance with applicable law. The separate limited liability company existence of Successor Fund shall continue unaffected and unimpaired by the Merger and, as the Surviving Company, it shall be governed by the DSTA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)At the Effective Time, as a result of the Merger and without any action on the part of the holder of any shares of the Predecessor Fund:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Each Predecessor Fund Share shall, by virtue of the Merger and without any action on the part of the holder thereof, be converted into the number of Successor Fund Shares provided for in <u>Section 2.3</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Successor Fund Shares issued and outstanding immediately prior to the Effective Time shall remain unchanged as a result of the Merger and shall remain outstanding as common shares of beneficial interests of the Surviving Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The certificate of trust of the Successor Fund as in effect immediately prior to the Effective Time shall be the certificate of trust of the Surviving Company, unless and until amended in accordance with its terms and applicable law. The declaration of trust of the Successor Fund in effect immediately prior to the Effective Time shall be the declaration of trust of the Surviving Company (the "<u>Declaration of Trust</u>"), unless and until amended in accordance with its terms and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)At the Effective Time, the Successor Fund shall continue in existence as the Surviving Company, and without further transfer, succeed to and possess all of the rights, privileges and powers of the Predecessor Fund, and all of the assets and property of whatever kind and character of the Predecessor Fund shall vest in the Successor Fund without further act or deed. Thereafter, the Successor Fund, as the Surviving Company, shall be liable for all of the liabilities and obligations of the Predecessor Fund, and any claim or judgment against the Predecessor Fund may be enforced against the Successor Fund, as the Surviving Company, in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Successor Fund will issue Successor Fund Shares to Predecessor Fund Shareholders in exchange for their Predecessor Fund Shares by opening shareholder accounts on the share ledger records of the Successor Fund in the names of and in the amounts due to the shareholders of the Predecessor Fund based on their respective holdings of Predecessor Fund Shares as of the Effective Time (as defined in <u>Section 2.1</u>). Ownership of Successor Fund Shares will be shown on the books of the Successor Fund's transfer agent, and the Successor Fund will not issue certificates representing Successor Fund Shares in connection with the Merger, except for any global certificate or certificates required by a securities depository in connection with the establishment of book-entry ownership of the Successor Fund Shares. All Successor Fund Shares to be issued pursuant to the Merger shall be deemed issued and outstanding as of the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Upon the terms and subject to the conditions of this Agreement, the parties shall cause the Merger to be consummated by filing a certificate of merger (the "<u>Certificate of Merger</u>") with the Secretary of State of the State of Delaware in accordance with the DSTA. The Merger shall become effective at such time as the Certificate of Merger is duly filed, or at such subsequent date or time as the Successor Fund and the Predecessor Fund shall agree and specify in the Certificate of Merger (the "<u>Effective Time</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Predecessor Fund agrees to dispose of certain assets prior to the Closing Date, but only if and to the extent necessary, so that at Closing (as defined in <u>Section 3.1</u>), when the Predecessor Fund's assets are aggregated, the resulting portfolio will meet the Successor Fund's investment objective, policies and restrictions, as set forth in the Successor Fund's Registration Statement (as defined in <u>Section 5.5</u>). Notwithstanding the foregoing, nothing herein will require the Predecessor Fund to dispose of any investments or securities prior to the Effective Time if, in the reasonable judgment of the Board of Trustees of the Predecessor Fund (the "<u>Predecessor Fund Board</u>") or the investment adviser to the Predecessor Fund, such disposition would adversely affect the status of its Merger as a "reorganization" as such term is

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used in Section 368(a) of the Code or would otherwise not be in the best interests of the Predecessor Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Accounting and Performance Survivor</u>. In connection with the transactions contemplated by this Agreement, the Predecessor Fund shall be deemed the survivor solely for accounting and performance purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Initial Shareholder Approvals</u>. Prior to the Effective Time, the Adviser will acquire one or more Successor Fund Shares at the net asset value set forth in <u>Section 2.2</u> and, as the sole shareholder of the Successor Fund, shall (a) approve the advisory agreement with the Adviser, in the form approved by the Board of Trustees of the Successor Fund, (b) elect the Trustees of the Successor Fund and (c) approve any other matter for which shareholder approval is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Transfer Taxes</u>. Any transfer taxes payable upon the issuance of Successor Fund Shares in a name other than the registered holder of the Predecessor Fund's shares on the books of the Predecessor Fund as of that time shall, as a condition of such issuance and transfer, be paid by the person to whom such Successor Fund Shares are to be issued and transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Reporting</u>. Any reporting responsibility of the Predecessor Fund, including, without limitation, the responsibility for filing of regulatory reports, tax returns or other documents with the Securities and Exchange Commission (the "<u>Commission</u>") or other regulatory authority, the exchange on which the Predecessor Fund's shares are listed or any state securities commission and any federal, state or local tax authorities or any other relevant regulatory authority, is and shall remain the responsibility of the Predecessor Fund or its duly appointed agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Books and Records</u>. The Predecessor Fund shall have arranged for the availability prior to, and the transfer as soon as practicable following, the Closing Date to the Successor Fund, or its designated agent, of the Predecessor Fund's books and records required to be maintained under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), and the rules and regulations thereunder.

**Article II<u><br>VALUATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Valuation of Assets</u>. The value of the net assets of the Predecessor Fund shall be the value of its assets, less its liabilities, computed as of the close of regular trading on the New York Stock Exchange on the business day immediately prior to the Closing Date (such time and date being hereinafter called the "<u>Valuation Time</u>"), using the valuation procedures of the Predecessor Fund adopted by the Predecessor Fund Board or such other valuation procedures as shall be mutually agreed upon by the parties (and approved by the Predecessor Fund Board and the Successor Fund Board).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Valuation of Shares</u>. The net asset value per Successor Fund Share shall be the net asset value per common share of the Predecessor Fund computed as of the Valuation Time, using the valuation procedures of the Predecessor Fund or such other valuation procedures as shall be mutually agreed upon by the parties (and approved by the Predecessor Fund Board and the Successor Fund Board).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Common Shares to be Issued</u>. As of the Effective Time, each Predecessor Fund Share outstanding immediately prior to the Effective Time shall be converted into one

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Successor Fund Share (and a fractional Predecessor Fund Share outstanding immediately prior to the Effective Time shall be converted into a corresponding fractional Successor Fund Share).

**Article III<u><br>CLOSINGS AND CLOSING DATE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Closing Date</u>. The conditions precedent set forth in <u>Articles VI-VIII</u> herein must be satisfied or waived with respect to each Fund in order for the closing of the Merger to take place. The closing of the Merger (the "<u>Closing</u>") shall occur on August 29, 2025 or such later date not to exceed sixty (60) days following the satisfaction or waiver of all Closing conditions, or such other date as the parties may agree (the "<u>Closing Date</u>"). Unless otherwise provided, all acts taking place at a Closing shall be deemed to take place as of 4:30 p.m. Eastern time on the Closing Date. The Closing shall be held at the offices of Skadden, Arps, Slate, Meagher & Flom LLP in New York, New York, or at such other time and/or place as the parties may agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Custodian's Certificate</u>. The Predecessor Fund shall cause its custodian to deliver to the Successor Fund at the Closing a certificate of an authorized officer identifying all of the Predecessor Fund's portfolio securities, investments, cash, and any other assets as of the Valuation Time and stating that the Predecessor Fund's portfolio securities, investments, cash, and any other assets shall have been delivered in proper form to constitute good delivery thereof to the Successor Fund's custodian on behalf of the Successor Fund on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Certificates of Transfer Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Predecessor Fund shall issue and deliver or cause its transfer agent to issue and to deliver to the Successor Fund at the Closing a certificate of an authorized officer setting forth the number of Predecessor Fund Shares outstanding as of the Valuation Time and stating that its records contain the names and addresses of all record holders of Predecessor Fund Shares and the number and percentage ownership of outstanding Predecessor Fund Shares owned by each the Predecessor Fund Shareholder immediately prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Successor Fund shall issue and deliver or cause its transfer agent to issue and to deliver to the Predecessor Fund a confirmation evidencing the Successor Fund Shares to be credited on the Closing Date to the Predecessor Fund Shareholders or provide evidence satisfactory to the Predecessor Fund that such Successor Fund Shares have been credited to the account of the Predecessor Fund Shareholders on the books of the Successor Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Delivery of Additional Items</u>. At the Closing, each party shall deliver to the other parties such bills of sale, checks, assignments, assumptions of liability, share certificates, opinions, receipts and other documents or instruments, if any, as such other parties or their counsel may reasonably request to effect the transactions contemplated by this Agreement. The Predecessor Fund shall, from time to time, as and when reasonably requested by the Successor Fund, execute and deliver or cause to be executed and delivered all such assignments and other instruments, and will take or cause to be taken such further action as the Successor Fund or the Successor Fund may reasonably deem necessary or desirable in order to ultimately vest and confirm the Successor Fund's title to and possession of all of the assets of the Predecessor Fund and to otherwise carry out the intent and purpose of this Agreement.

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**Article IV<u><br>REPRESENTATIONS AND WARRANTIES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Representations of the Predecessor Fund</u>. The Predecessor Fund represents and warrants with respect to the Merger as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Predecessor Fund is a statutory trust duly organized, validly existing and in good standing under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Predecessor Fund is a closed-end management investment company that is regulated as a business development company under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Predecessor Fund is not, and the execution, delivery, and performance of this Agreement (subject to shareholder approval) will not result, in violation of the Predecessor Fund's Declaration of Trust, By-Laws, or of any material agreement, indenture, instrument, contract, lease, or other undertaking to which the Predecessor Fund is a party or by which it is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)There are no contracts outstanding to which the Predecessor Fund is a party that have not been disclosed to the Successor Fund. Except as otherwise disclosed to and accepted by the Successor Fund, the Predecessor Fund has no material contracts or other commitments that will be terminated with liability to it on or before the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)No litigation, administrative proceeding, or investigation of or before any court or governmental body presently is pending or, to its knowledge, threatened against the Predecessor Fund or any of its properties or assets, which, if adversely determined, would result in liability on the part of the Predecessor Fund other than as have been disclosed to the Successor Fund. The Predecessor Fund knows of no facts that might form the basis for the institution of such proceedings and is not a party to or subject to the provisions of any order, decree, or judgment of any court or governmental body that materially and adversely affects its business or its ability to consummate the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The financial statements of the Predecessor Fund as of December 31, 2024, and for the fiscal year then ended have been prepared in accordance with generally accepted accounting principles and have been audited by independent auditors, and such statements (copies of which have been furnished to the Successor Fund) fairly reflect the financial condition of the Predecessor Fund as of December 31, 2024, and there are no known liabilities, contingent or otherwise, of the Predecessor Fund as of such date that are not disclosed in such statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Since the date of the financial statements referred to in above, there have been no material adverse changes in the Predecessor Fund's financial condition, assets, liabilities or business (other than changes occurring in the ordinary course of business) and there are no liabilities of a material nature, contingent or otherwise, of the Predecessor Fund arising after such date. Before the Closing Date, the Predecessor Fund will advise the Successor Fund of all material liabilities, contingent or otherwise, incurred by it subsequent to December 31, 2024, whether or not incurred in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)As of the date hereof, except as previously disclosed to the Successor Fund, and except as have been corrected as required by applicable law, there have been no material miscalculations of the net asset value of the Predecessor Fund during the twelve-month period preceding the date hereof and preceding the Closing Date, and all such

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calculations have been or will be made in accordance with the applicable provisions of the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)All federal, state, local and other tax returns and reports of the Predecessor Fund required by law to be filed by it (taking into account permitted extensions for filing) have been timely filed and are complete and correct in all material respects. All federal, state, local and other taxes of the Predecessor Fund required to be paid (whether or not shown on any such return or report) have been paid, or provision shall have been made for the payment thereof and any such unpaid taxes as of the date of the financial statements referred to above, are properly reflected thereon. To the best of the Predecessor Fund's knowledge, no tax authority is currently auditing or preparing to audit the Predecessor Fund, and no assessment for taxes, interest, additions to tax or penalties has been asserted against the Predecessor Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)The authorized capital of the Predecessor Fund consists of 700,000,000 common shares and 50,000,000 preferred shares, par value $0.001 per share. All issued and outstanding shares of the Predecessor Fund are duly and validly issued, fully paid and non-assessable by the Predecessor Fund. All of the issued and outstanding shares of the Predecessor Fund will, at the time of the Closing, be held by the persons and in the amounts set forth in the records of the Predecessor Fund's transfer agent as provided in <u>Section 3.3</u>. The Predecessor Fund has no outstanding options, warrants or other rights to subscribe for or purchase any shares of the Predecessor Fund, and has no outstanding securities convertible into shares of the Predecessor Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)At the Closing, the Predecessor Fund will have good and marketable title to the Predecessor Fund's assets held immediately prior to the Effective Time, and full right, power, and authority to sell, assign, transfer, and deliver such assets hereunder free and clear of any liens or encumbrances, except those liens and encumbrances to which the Successor Fund has received written notice and have not objected, and the Successor Fund will acquire good and marketable title thereto, subject to no restrictions on the full transfer thereof, including such restrictions as might arise under the Securities Act of 1933 (the "<u>1933 Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)The execution, delivery and performance of this Agreement have been duly authorized by all necessary action on the part of the Predecessor Fund. Subject to approval by its shareholders, this Agreement constitutes a valid and binding obligation of the Predecessor Fund, enforceable in accordance with its terms, subject as to enforcement, to bankruptcy, insolvency, reorganization, moratorium, and other laws relating to or affecting creditors' rights and to general equity principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)The information to be furnished by the Predecessor Fund for use in no-action letters, applications for orders, registration statements, proxy materials and other documents that may be necessary in connection with the transactions contemplated herein shall be accurate and complete in all material respects and shall comply in all material respects with federal securities laws and other laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)Except as previously disclosed to the Successor Fund, the minute books and other similar records of the Predecessor Fund as made available to the Successor Fund prior to the execution of this Agreement contain a true and complete record of all action taken at all meetings and by all written consents in lieu of meetings of the shareholders of the Predecessor Fund, the Predecessor Fund Board and committees of the Predecessor Fund Board. The records of the Predecessor Fund contain the names and addresses of all holders of common shares of the Predecessor Fund and the number and percentage ownership of outstanding common shares owned by the Predecessor Fund Shareholders immediately prior to the Closing and such records are accurate as of the Closing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)The Predecessor Fund has maintained, or caused to be maintained on its behalf, all books and records required of a registered investment company in compliance with the requirements of Section 31 of the 1940 Act and rules thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)From the effective date of the Registration Statement (as defined in <u>Section 5.5</u>) through the time of the meeting of shareholders and on the Closing Date, any written information furnished by the Predecessor Fund with respect to the Predecessor Fund for use in the Registration Statement, and any supplement or amendment thereto or to the documents included or incorporated by reference therein, any Proxy Materials (as defined in <u>Section 5.5</u>) or any other materials provided in connection with the Merger, does not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated or necessary to make the statements, in light of the circumstances under which such statements were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)The Predecessor Fund has complied, and is in compliance, in all material respects, with its investment policies and restrictions currently in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)No consent, approval, authorization, or order of any court or, governmental authority is required for the consummation by the Predecessor Fund of the transactions contemplated herein, except such as have been or will be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)For each taxable year of its operations, the Predecessor Fund (i) has had in effect an election to qualify, and has qualified as a "regulated investment company" under the Code (a "<u>RIC</u>")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Representations of the Successor Fund</u>. The Successor Fund represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Successor Fund is a statutory trust duly organized, validly existing and in good standing under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Successor Fund is registered as a closed-end management investment company under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Successor Fund is not, and the execution, delivery and performance of this Agreement will not result, in violation of the Successor Fund's Declaration of Trust or By-Laws, or of any material agreement, indenture, instrument, contract, lease, or other undertaking to which the Successor Fund is a party or by which it is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)There are no contracts outstanding to which the Successor Fund is a party that have not been disclosed to the Predecessor Fund. Except as otherwise disclosed to and accepted by the Predecessor Fund, the Successor Fund has no material contracts or other commitments that will be terminated with liability to it on or before the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)No litigation, administrative proceeding or investigation of or before any court or governmental body presently is pending or, to its knowledge, threatened against the Successor Fund or any of its properties or assets, which, if adversely determined, would result in liability on the part of the Successor Fund, other than as have been disclosed to the Predecessor Fund. The Successor Fund knows of no facts that might form the basis for the institution of such proceedings and it is not a party to or subject to the provisions of any order, decree, or judgment of any court or governmental body that materially and adversely affects its business or its ability to consummate the transactions contemplated herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The authorized capital of the Successor Fund consists of an unlimited number of shares of beneficial interest, par value $0.001 per share. The Successor Fund has no outstanding shares as of the date hereof and will have one outstanding share as of the Closing and has no outstanding, options, warrants, or other rights to subscribe for or purchase any shares of the Successor Fund or securities convertible into shares of the Successor Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The execution, delivery and performance of this Agreement have been duly authorized by all necessary action on the part of the Successor Fund. This Agreement constitutes a valid and binding obligation of the Successor Fund, enforceable in accordance with its terms, subject as to enforcement, to bankruptcy, insolvency, reorganization, moratorium, and other laws relating to or affecting creditors' rights and to general equity principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)The Successor Fund Shares to be issued and delivered pursuant to the terms of this Agreement will, at the Closing, have been duly authorized. When so issued and delivered, such Successor Fund Shares will be duly and validly issued shares of the Successor Fund, and will be fully paid and non-assessable by the Successor Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The information to be furnished by the Successor Fund for use in no-action letters, applications for orders, registration statements, proxy materials, and other documents that may be necessary in connection with the transactions contemplated herein shall be accurate and complete in all material respects and shall comply in all material respects with federal securities laws and other laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)From the effective date of the Registration Statement (as defined in <u>Section 5.5</u>) through the time of the meeting of shareholders and on the Closing Date, any written information furnished by the Successor Fund with respect to the Successor Fund for use in the Registration Statement, and any supplement or amendment thereto or to the documents included or incorporated by reference therein, any Proxy Materials (as defined in <u>Section 5.5</u>) or any other materials provided in connection with the Merger, does not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated or necessary to make the statements, in light of the circumstances under which such statements were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)No consent, approval, authorization, or order of any court or governmental authority is required for the consummation by the Successor Fund or the Successor Fund of the transactions contemplated herein, except such as have been or will be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)The Successor Fund agrees to use all reasonable efforts to obtain the approvals and authorizations required by the 1933 Act, the 1940 Act, and any state securities laws as it may deem appropriate in order to consummate the transactions hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)The Successor Fund has no assets, and will have no assets as of the Closing Date other than as necessary to issue one share to the initial shareholder, and has engaged in no activities other than as necessary to consummate the transactions hereunder.

**Article V<u><br>COVENANTS OF THE FUNDS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Operation in Ordinary Course</u>. Subject to <u>Sections 1.1(f)</u> and <u>8.5</u>, the Predecessor Fund will operate its business in the ordinary course from the date of this Agreement through the Closing, it being understood that such ordinary course of business will include customary dividends and distributions, and any other distribution necessary or desirable to avoid federal income or excise taxes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Approval of Shareholders</u>. The Predecessor Fund will call a meeting of its shareholders to consider and act upon this Agreement and to take all other appropriate action necessary to obtain approval of the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Additional Information</u>. The Predecessor Fund will assist the Successor Fund in obtaining such information as the Successor Fund reasonably requests concerning the beneficial ownership of the Predecessor Fund's shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Further Action</u>. Subject to the provisions of this Agreement, each Fund will take or cause to be taken all action and do or cause to be done all things reasonably necessary, proper or advisable to consummate and make effective the transactions contemplated by this Agreement, including any actions required to be taken after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Preparation of Registration Statement and Proxy Materials</u>. The Funds will prepare and file with the Commission a registration statement on Form N-14 relating to the Successor Fund Shares to be issued to holders of Predecessor Fund Shares (the "<u>Registration Statement</u>"). The Registration Statement shall include a proxy statement of the Predecessor Fund and a prospectus of the Successor Fund relating to the transactions contemplated by this Agreement. The Registration Statement shall be in compliance with the 1933 Act, the Securities Exchange Act of 1934 and the 1940 Act, as applicable. Each party will provide the other party with the materials and information necessary to prepare the Registration Statement, including the proxy statement and related materials (the "<u>Proxy Materials</u>") for inclusion therein, in connection with the meetings of the Predecessor Fund' shareholders to consider the approval of this Agreement and the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Tax Status of Reorganizations</u>. The intention of the parties is that the Merger will qualify as a "reorganization" described in Section 368(a)(1)(F) of the Code. Neither the Predecessor Fund nor the Successor Fund shall take any action, or cause any action to be taken (including, without limitation, the filing of any tax return), that is inconsistent with such treatment or that results in the failure of the transactions to qualify as a "reorganizations" described in Section 368(a)(1)(F) of the Code. At or prior to the Closing, the parties to this Agreement will take such action, or cause such action to be taken, as is reasonably necessary to enable counsel to render the tax opinion contemplated in <u>Section 8.8</u>.

**Article VI<u><br>CONDITION PRECEDENT TO OBLIGATIONS OF THE PREDECESSOR FUND</u>**

The obligation of the Predecessor Fund to consummate the transactions provided for herein shall be subject to the fulfillment or waiver of the following condition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Representations and Warranties</u>. All representations and warranties of the Successor Fund contained in this Agreement shall be true and correct in all material respects as of the date hereof and as of the Closing, with the same force and effect as if made on and as of the Closing. The Successor Fund shall have delivered to the Predecessor Fund a certificate executed in the Successor Fund's name by the Successor Fund's (i) President or Vice President and (ii) Treasurer, in form and substance satisfactory to the Predecessor Fund and dated as of the Closing Date, to such effect and as to such other matters as the Predecessor Fund shall reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Performance with Terms</u>. The Successor Fund shall have performed and complied in all material respects with all terms, conditions, covenants, obligations, agreements

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and restrictions required by this Agreement to be performed or complied with by it prior to or at the Closing Date.

**Article VII<u><br>CONDITIONS PRECEDENT TO OBLIGATIONS OF <br>THE SUCCESSOR FUND</u>**

The obligations of the Successor Fund to consummate the transactions provided for herein shall be subject to the fulfillment or waiver of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Representations and Warranties</u>. All representations and warranties of the Predecessor Fund contained in this Agreement shall be true and correct in all material respects as of the date hereof and as of the Closing, with the same force and effect as if made on and as of the Closing. The Predecessor Fund shall have delivered to the Successor Fund on the Closing Date a certificate executed in the Predecessor Fund's name by the Predecessor Fund's (i) President or Vice President and (ii) Treasurer, in form and substance satisfactory to the Successor Fund and dated as of the Closing Date, to such effect and as to such other matters as the Successor Fund shall reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Terms and Conditions</u>. The Predecessor Fund shall have performed and complied in all material respects with all terms, conditions, covenants, obligations, agreements and restrictions required by this Agreement to be performed or complied with by it prior to or at the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Statement of Assets and Liabilities</u>. The Predecessor Fund shall have delivered to the Successor Fund a statement of the Predecessor Fund's assets and liabilities, together with a list of the Predecessor Fund's portfolio securities showing the tax basis of such securities by lot and the holding periods of such securities, as of the Closing, certified by the Treasurer of the Predecessor Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Records</u>. The Predecessor Fund shall have delivered such records, agreements, certificates, instruments and such other documents as the Successor Fund shall reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Contracts</u>. All contracts of the Predecessor Fund set forth on <u>Schedule 7.5</u> will be terminated with respect to the Predecessor Fund as of the Closing.

**Article VIII<u><br>FURTHER CONDITIONS PRECEDENT</u>**

The obligations of the Funds to consummate the transactions under this Agreement are subject to the fulfillment (or waiver by the affected parties) of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Shareholder Approval</u>. This Agreement and the transactions contemplated herein shall have been approved by the requisite vote of the holders of the outstanding Predecessor Fund Shares in accordance with applicable law and the provisions of the Predecessor Fund's Declaration of Trust and By-Laws. Notwithstanding anything herein to the contrary, none of the parties may waive the condition set forth in this <u>Section 8.1</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>No Commission Report</u>. The Commission shall not have issued an unfavorable report under Section 25(b) of the 1940 Act, or instituted any proceeding seeking to enjoin the consummation of the transactions contemplated by this Agreement under Section 25(c) of the 1940 Act. Furthermore, no action, suit or other proceeding shall be threatened or pending before any court or governmental agency in which it is sought to restrain or prohibit, or obtain damages or other relief in connection with this Agreement or the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Consents</u>. All required consents of other parties and all other consents, orders, and permits of federal, state and local regulatory authorities (including those of the Commission and of state securities authorities, including any necessary "no-action" positions and exemptive orders from such federal and state authorities) to permit consummation of the transactions contemplated herein shall have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Registration Statement</u>. The Registration Statement shall have become effective under the 1933 Act, and no stop orders suspending the effectiveness thereof shall have been issued. To the best knowledge of the parties to this Agreement, no investigation or proceeding for that purpose shall have been instituted or be pending, threatened or contemplated under the 1933 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Opinion to Predecessor Fund</u>. The Predecessor Fund shall have received on the Closing Date an opinion from Skadden, Arps, Slate, Meagher & Flom LLP dated as of the Closing Date, substantially to the effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Successor Fund is duly formed and is validly existing and in good standing under the DSTA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Assuming that the Successor Fund Shares will be issued in accordance with the terms of this Agreement, the Successor Fund Shares to be issued and delivered to the Predecessor Fund Shareholders as provided by this Agreement are duly authorized by all requisite statutory trust action on the part of the Successor Fund under the DSTA and validly issued and fully paid and nonassessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The execution and delivery of this Agreement by the Successor Fund did not, and the consummation by the Successor Fund of the transactions contemplated herein will not, violate the Successor Fund's Declaration of Trust or By-Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Opinion to Successor Fund</u>. The Successor Fund shall have received on the Closing Date an opinion from Skadden, Arps, Slate, Meagher & Flom LLP dated as of the Closing Date, substantially to the effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Predecessor Fund is duly formed and is validly existing and in good standing under the DSTA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The execution and delivery of this Agreement by the Predecessor Fund, did not, and the consummation by the Predecessor Fund of the transactions contemplated herein will not, violate the Predecessor Fund's Declaration of Trust or By-Laws (assuming the requisite approval of the Predecessor Fund's shareholders has been obtained in accordance with its Declaration of Trust and By-Laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Tax Opinion</u>. With respect to the Merger, the Funds shall have received on the Closing Date an opinion of Skadden, Arps, Slate, Meagher & Flom LLP addressed to the Successor Fund and the Predecessor Fund substantially to the effect that for federal income tax

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purposes the merger of the Predecessor Fund with and into the Successor Fund pursuant to the DSTA will constitute a "reorganization" described in Section 368(a) of the Code.

**Article IX<u><br>EXPENSES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>General</u>. All expenses incurred in connection with the Merger (whether or not the Merger is consummated) will be borne by the Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>No Fees</u>. Each party represents and warrants to the other parties that there is no person or entity entitled to receive any broker's fees or similar fees or commission payments in connection with structuring the transactions provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Taxes</u>. Notwithstanding the foregoing, expenses will in any event be paid by the party directly incurring such expenses if and to the extent that the payment by another party of such expenses would result in the disqualification of the Predecessor Fund or the Successor Fund, as the case may be, as a RIC under the Code.

**Article X<u><br>ENTIRE AGREEMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The parties agree that no party has made to any other party any representation, warranty and/or covenant not set forth herein, and that this Agreement constitutes the entire agreement between and among the parties.

**Article XI<u><br>TERMINATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Process</u>. This Agreement may be terminated by the mutual agreement of the parties and such termination may be effected by each Fund's Chief Executive Officer, President or any Vice President without further action by the Successor Fund Board or the Predecessor Fund Board. In addition, this Agreement may be terminated at or before the Closing Date due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a breach by the non-terminating party of any representation, or warranty, or agreement to be performed at or before the Closing, if not cured within 30 days of the breach and prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a condition precedent to the obligations of the terminating party that has not been met or waived and it reasonably appears that it will not or cannot be met; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)a determination by the Successor Fund Board or the Predecessor Fund Board that the consummation of the transactions contemplated herein is not in the best interests of its respective Fund involved in the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Liability</u>. In the event of any such termination, in the absence of willful default, there shall be no liability for damages on the part of the Successor Fund Board, the Predecessor Fund Board, the Predecessor Fund, the Successor Fund, the adviser to the Successor Fund or the Predecessor Fund, or any officers of such Funds or the Successor Fund or such advisers.

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**Article XII<u><br>AMENDMENTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.This Agreement may be amended, modified, or supplemented in such manner as may be mutually agreed upon in writing by the officers of each Fund subject to the prior review of each Fund's counsel and the authorization of each Fund's Board of Trustees; <u>provided</u>, <u>however</u>, that following the meeting of the shareholders of the Predecessor Fund called by the Predecessor Fund pursuant to <u>Section 5.2</u> of this Agreement, no such amendment, modification or supplement may have the effect of changing the provisions for determining the number of Successor Fund Shares to be issued to the Predecessor Fund Shareholders under this Agreement to the detriment of such shareholders without their further approval.

**Article XIII<u><br>HEADINGS; COUNTERPARTS; GOVERNING LAW; ASSIGNMENT; <br>LIMITATION OF LIABILITY</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Headings</u>. The article and section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Delaware Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Successors and Assigns</u>. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns, and no assignment or transfer hereof or of any rights or obligations hereunder shall be made by any party without the written consent of the other parties. Nothing herein expressed or implied is intended or shall be construed to confer upon or give any person, firm, or corporation, other than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Liabilities</u>. Neither Fund shall have any liability for the obligations of the other Fund, and the liabilities of each Fund shall be several and not joint.

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IN WITNESS WHEREOF, the parties have duly executed this Agreement, all as of the date first written above.

**FS SPECIALTY LENDING FUND**

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Stephen S. Sypherd</u><br>&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Stephen S. Sypherd<br>&nbsp;&nbsp;&nbsp;&nbsp;Title: General Counsel&nbsp;&nbsp;&nbsp;&nbsp;

**NEW FS SPECIALTY LENDING FUND**

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Stephen S. Sypherd</u><br>&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Stephen S. Sypherd<br>&nbsp;&nbsp;&nbsp;&nbsp;Title: General Counsel&nbsp;&nbsp;&nbsp;&nbsp;

**FS/EIG ADVISOR, LLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Stephen S. Sypherd</u><br>&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Stephen S. Sypherd<br>&nbsp;&nbsp;&nbsp;&nbsp;Title: Authorized Signatory

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Michael C. Forman, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this quarterly report on Form 10-Q of FS Specialty Lending Fund;

2.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;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, including its consolidated subsidiaries, 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;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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 functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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 14, 2025

---

| |
|:---|
| /s/ MICHAEL C. FORMAN |
| Michael C. Forman<br>Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, Edward T. Gallivan, Jr. certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this quarterly report on Form 10-Q of FS Specialty Lending Fund;

2.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;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, including its consolidated subsidiaries, 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;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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 functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp;&nbsp;&nbsp;&nbsp;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 14, 2025

---

| |
|:---|
| /s/ EDWARD T. GALLIVAN, JR. |
| Edward T. Gallivan, Jr.<br>Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION of CEO and CFO PURSUANT TO**

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

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

In connection with the Quarterly Report on Form 10-Q of FS Specialty Lending Fund (the "Company") for the three months ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Form 10-Q"), Michael C. Forman, as Chief Executive Officer of the Company, and Edward T. Gallivan, Jr., as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Form 10-Q of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Dated: August 14, 2025 | |
| | /s/ MICHAEL C. FORMAN |
| | Michael C. Forman<br>Chief Executive Officer |
| | /s/ EDWARD T. GALLIVAN, JR. |
| | &nbsp;&nbsp;&nbsp;&nbsp;Edward T. Gallivan, Jr.<br> Chief Financial Officer |

---

## Exhibit 10.1

***Execution Version***

**OMNIBUS AMENDMENT**

This AMENDMENT (this "<u>Amendment</u>") is entered into as of August 12, 2025 by and among FSSL Finance BB AssetCo LLC (the "<u>Issuer</u>"), Barclays Bank PLC, as liquidation agent (the "<u>Liquidation Agent</u>"), beneficiary under the Guaranty (as defined below), Buyer under the Repurchase Agreement referred to below (the "<u>Repo Buyer</u>") and the Holder of 100% of the Notes Outstanding as of the date hereof ("<u>Existing Noteholder</u>"), Computershare Trust Company, N.A., as trustee (the "<u>Trustee</u>"), FS Specialty Lending Fund (previously known as FS Energy and Power Fund), as investment manager (the "<u>Investment Manager</u>") and guarantor under the Guaranty (the "<u>Guarantor</u>"), and FSSL Finance BB Seller LLC, as Seller under the Repurchase Agreement referred to below (the "<u>Repo Seller</u>").

**WHEREAS**, the Issuer, the Liquidation Agent and the Trustee have previously entered into the Indenture, dated as of September 6, 2023 (the "<u>Indenture</u>") and have now agreed to amend the Indenture by the terms of this Amendment;

**WHEREAS**, the Issuer, the Investment Manager, the Repo Seller, the Liquidation Agent and the Repo Buyer have previously entered into the Margining Agreement, dated as of September 6, 2023 (the "<u>Margining Agreement</u>") and have now agreed to amend the Margining Agreement by the terms of this Amendment;

**WHEREAS**, the Repo Buyer and the Repo Seller have previously entered into the Master Repurchase Agreement (including the annexes thereto and the Master Confirmation thereunder dated as of September 6, 2023 (the "<u>Master Confirmation</u>") entered into between the Repo Seller and the Repo Buyer), dated as of September 6, 2023 (the "<u>Repurchase Agreement</u>") and have now agreed to amend the Repurchase Agreement and the Master Confirmation by the terms of this Amendment;

**WHEREAS**, the Existing Noteholder, the Repo Seller and the Repo Buyer have now agreed to amend the Transaction as described in the Master Confirmation (the amended Transaction, being the "**Upsize Transaction**") and in connection therewith, have now agreed to amend the principal amounts of the Eligible Securities as described in the Master Confirmation;

**WHEREAS**, the Issuer has previously executed a Rule 144A Global Note, dated as of September 6, 2023 (the "<u>144A Global Note</u>") that has been authenticated by the Trustee on September 6, 2023, and the Issuer and the Trustee have now agreed to amend the 144A Global Note by the terms of this Amendment;

**WHEREAS**, the Issuer has previously executed a Regulation S Global Note, dated as of September 6, 2023 (the "<u>Reg S Global Note</u>") that has been authenticated by the Trustee on September 6, 2023, and the Issuer and the Trustee have now agreed to amend the Reg S Global Note by the terms of this Amendment;

**WHEREAS**, FS Specialty Lending Fund has issued in favor of Barclays Bank PLC a Guaranty dated as of September 6, 2023 (the "<u>Guaranty</u>") and has now agreed to amend the Guaranty by the terms of this Amendment;

**WHEREAS**, pursuant to Section 8 of the Guaranty, Barclays Bank PLC hereby consents to the terms of this Amendment;

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**WHEREAS**, pursuant to Section 3(a) of the Margining Agreement, the Issuer, the Investment Manager and the Liquidation Agent hereby consent to the terms of this Amendment; and

**WHEREAS**, pursuant to Section 8.1 of the Indenture, the Existing Noteholder hereby consents to the terms of this Amendment.

Accordingly, in consideration of the mutual agreements contained in this Amendment, the parties agree as follows:

**1.**&nbsp;&nbsp;&nbsp;&nbsp;**Amendments**.&nbsp;&nbsp;&nbsp;&nbsp;

(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indenture</u>. As of the date hereof, the Indenture is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The definition of "Maximum Principal Amount" in Section 1.1 is amended and restated in its entirety as follows:

"<u>Maximum Principal Amount</u>": $1,000,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Clause (x)(ii) of the definition of "Redemption Price Adjustment" in Section 1.1 is amended and restated in its entirety as follows:

"(ii)&nbsp;&nbsp;&nbsp;&nbsp;the denominator of which is the excess of (a) U.S.$1,000,000,000 <u>over</u> (b) the aggregate of principal amount of the Notes that have been repaid prior to such date pursuant to this Indenture (which repayment includes such repayment pursuant to Section 11.1(a) and any and all redemptions prior to such date under this Indenture); and"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The definition of "Reinvestment Period" in Section 1.1 is amended and restated in its entirety as follows:

"<u>Reinvestment Period</u>": The period from the Closing Date to and including the earlier to occur of (i) the date that is three (3) years after August 12, 2025, and (ii) the occurrence of an Event of Default that results in an acceleration of the Notes in accordance with Section 5.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Section 7.6(c) is amended by replacing subclause (i) thereof with "(i) [*Reserved*];".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The exhibits in the Indenture are amended by replacing each instance of the words "Up to U.S.$500,000,000" with the words "Up to U.S.$1,000,000,000".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) &nbsp;&nbsp;&nbsp;&nbsp;Section 9.1(b) is amended by replacing the words "The Issuer (at the direction of the Investment Manager) may optionally redeem the Notes in whole pursuant to this Section 9.1 on any Redemption Date after the Reinvestment Period subject to the following conditions:" with:

&nbsp;&nbsp;&nbsp;&nbsp;"The Issuer (at the direction of the Investment Manager) may optionally redeem the Notes in whole pursuant to this Section 9.1: (i) with respect to any Note that has been repurchased by the Repo Seller from the Repo Buyer, on any Redemption Date; and (ii) on any Redemption Date after the Reinvestment Period, subject to the following conditions:"

(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>144A Global Note</u>. As of the date hereof, the 144A Global Note is hereby amended by replacing the words "Up to U.S.$500,000,000" with the words "Up to U.S.$1,000,000,000".

(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reg S Global Note</u>. As of the date hereof, the Reg S Global Note is hereby amended by replacing the words "Up to U.S.$500,000,000" with the words "Up to U.S.$1,000,000,000".

(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Margining Agreement</u>. As of the date hereof, the Margining Agreement is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The definition of "Individual Applicable Margin" in Section 1 is amended and restated in its entirety as follows:

"<u>Individual Applicable Margin</u>" means, for any Collateral Obligation on any date of determination, the "Individual Applicable Margin" set forth in the table below across from the relevant asset type for such Collateral Obligation:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Asset Type** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Individual Applicable Margin** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Lien Liquid Asset | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.85% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Lien Illiquid Asset | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured Liquid Asset | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Second Lien Liquid Asset | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Second Lien Illiquid Asset | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Junior Illiquid Asset | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured Illiquid Asset | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legacy Energy & Power Asset | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.20% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The definition of "Facility Applicable Margin" in Section 1 is amended and restated in its entirety as follows:

"<u>Facility Applicable Margin</u>" means, on any date of determination, as determined by the Calculation Agent, the percentage equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the sum for each Collateral Obligation (as of the most recent Margin Calculation Date) of the product of (x) the Borrowing Base Amount of such Collateral Obligation as of the most recent Margin Calculation Date and (y) the Individual

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Applicable Margin for such Collateral Obligation as of the most recent Margin Calculation Date; divided by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the sum of the Borrowing Base Amounts of all Collateral Obligations as of the most recent Margin Calculation Date;

provided that on any date that an Event of Default of Repo Seller as the defaulting party (each such term as defined in the Repurchase Agreement) has occurred and is continuing and a Repurchase Date has occurred as a result of such Event of Default, the Facility Applicable Margin shall be the rate determined above plus 2.00%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;References to "FS ENERGY AND POWER FUND" shall be interpreted as references to "FS SPECIALTY LENDING FUND".

(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Repurchase Agreement</u>. As of the date hereof, the Repurchase Agreement is hereby amended by replacing and restating Section 11(a) of Annex I thereto in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on the Purchase Date for any Transaction, (i) Buyer represents and warrants that Buyer is familiar with the provisions of Rule 144A, (ii) Buyer represents and warrants that Buyer is a "Qualified Institutional Buyer" as such term is defined in Rule 144A, and (iii) Seller represents and warrants that any Purchased Securities transferred to Buyer are not subject to any legal or regulatory restrictions on transfer other than those applicable to "restricted securities" within the meaning of Rule 144 or those set out in the Security Indenture; and

(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Guaranty</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)As of the date hereof, the Guaranty is hereby amended by replacing and restating Section 7(b) in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Guarantor (together with its successors or assigns) shall not, in each case determined on a consolidated basis in accordance with generally accepted accounting principles in effect from time to time in the United States:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)(i) unless and until the Guarantor is registered under Section 8 of the Investment Company Act of 1940, as amended (the "<u>1940 Act</u>"), incur additional indebtedness if after giving effect thereto the Guarantor would not be in compliance with the asset coverage ratio requirements applicable to business development companies under the 1940 Act, or (ii) if Guarantor is registered under Section 8 of the 1940 Act, incur additional indebtedness if after giving effect thereto the Guarantor would not be in compliance with the asset coverage ratio requirements applicable to registered closed-end companies under the 1940 Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)permit the Guarantor's total Shareholders' Equity at the last day of any fiscal quarter of the Guarantor to be less than the product of (a) the Guarantor's total shareholders' equity as of March 31, 2023 less the amount of any and all redemptions of tendered shares of the Guarantor (including, without limitation, such shares that are subject to buyback(s) by the Guarantor) since such date and (b) 50%.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)As of the date hereof, the Guaranty is hereby amended by replacing and restating Section 9 in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Binding Effect. This Guaranty shall be binding on Guarantor and its successors and assigns. However, Guarantor shall not transfer any of its obligations under this Guaranty without the prior written consent of Barclays, and any purported transfer without that consent shall be void; provided that any reorganization into a closed-end company registered under Section 8 of the 1940 Act shall not require such consent of Barclays. This Guaranty shall inure to the benefit of Barclays and its successors and assigns.

(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Master Confirmation</u>. As of the date hereof, the Master Confirmation is hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the underlined text (indicated textually in the same manner as the following example: **<u>double-underlined text</u>**) as set forth in Exhibit A attached to this Amendment.

**2.&nbsp;&nbsp;&nbsp;&nbsp;Representations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each party to the Repurchase Agreement represents to the other party thereto in respect of the Repurchase Agreement, as amended pursuant to this Amendment, that all representations made by it pursuant to the Repurchase Agreement are true and correct in all material respects on and as of the date hereof as if made on and as of the date hereof (except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Existing Noteholder hereby represents and warrants to the Trustee that, as of the date hereof, it is the beneficial owner of 100% of the Aggregate Outstanding Amount of the Notes and has the full power and authority to execute this Amendment.

**3. Acknowledgement and Direction to Trustee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;By execution of this Amendment, the Existing Noteholder and the Investment Manager each agrees that it (i) shall be deemed to have received a copy of the proposed amendments to the Indenture contained in this Amendment more than 15 Business Days prior to the date hereof and (ii) hereby waives its right to receive an executed copy of this Amendment from the Trustee as described in Section 8.1 of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each of the Existing Noteholder, the Issuer, the Investment Manager, and the Liquidation Agent hereby (i) represents and warrants to the Trustee that all conditions precedent to the execution of this Amendment in the Indenture have been satisfied or waived; (ii) consents to and directs the Trustee to execute this Amendment without providing any further notice and without receiving the Opinion of Counsel pursuant to Section 8.2 of the Indenture and (iii) acknowledges and agrees that the Trustee shall be fully protected in relying upon the foregoing consent and direction and hereby releases the Trustee and their respective officers, directors, agents, employees and shareholders, as applicable, from any liability for complying with such direction, including but not limited to any claim that this Amendment is not authorized or permitted by the Indenture or the Transaction Documents or any claim that some or all of the conditions precedent to the execution of this Amendment have not been complied

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with. Upon the effectiveness of this Amendment, the Issuer hereby requests and directs the Trustee to approve the DWAC deposit instructions at DTC to deposit the amount of $500,000,000 for CUSIP 30332CAA7 into participant account number #7254 with a settlement date of August 12, 2025 and an effective date of August 12, 2025.

**4. Conditions Precedent to Amendment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It shall be a condition to the effectiveness of this Amendment, that the following conditions (the "**Amendment Conditions**") shall have been satisfied (or waived by the Repo Buyer), in form and substance satisfactory to the Repo Buyer in its sole and absolute discretion:

(a) the Repo Buyer shall have received the full 2025 Amendment Fee Amount (as defined in the Master Confirmation as amended by this Amendment) from the Repo Seller;

(b) no Default or Event of Default with respect to the Repo Seller as the defaulting party has occurred under the Repurchase Agreement and is then continuing; and

(c)&nbsp;&nbsp;&nbsp;&nbsp;the Repo Buyer shall have received an opinion of Dechert LLP, counsel to the Investment Manager and the Issuer, dated the date hereof, in a form reasonably acceptable to it.

**5.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous**

(a)&nbsp;&nbsp;&nbsp;&nbsp;***Entire Agreement; Restatement.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;This Amendment constitutes the entire agreement and understanding of the parties with respect to its subject matter and supersedes all oral communication and prior writings (except as otherwise provided herein) with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Except for the amendments set forth in this Amendment, all terms and conditions of the Transaction Documents and the Repurchase Agreement (including the Master Confirmation) will continue in full force and effect in accordance with their respective provisions on the date of this Amendment. References in the Transaction Documents and the Repurchase Agreement to the Indenture, the Margining Agreement, the Repurchase Agreement, the Master Confirmation, the 144A Global Note, the Reg S Global Note or the Guaranty, will be to the Indenture, the Margining Agreement, the Repurchase Agreement, the Master Confirmation, the 144A Global Note, the Reg S Global Note or the Guaranty (as applicable) as amended by this Amendment.

(b)&nbsp;&nbsp;&nbsp;&nbsp;***Definitions***.&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise defined in this Amendment, capitalized terms in this Amendment have the meanings ascribed to such terms in the Indenture or the Repurchase Agreement (including the Master Confirmation), as applicable.

(c)&nbsp;&nbsp;&nbsp;&nbsp;***Counterparts.*** This Amendment may be executed and delivered in counterparts (including transmission by facsimile, electronic messaging system or e-mail), each of which will be deemed an original. This Amendment shall be valid, binding, and enforceable against a party when executed and delivered by an authorized individual on behalf of the party by means of (i) an original manual signature; (ii) a faxed, scanned, or photocopied manual signature, or (iii) any other electronic signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, and/or any other relevant electronic signatures law, including any relevant provisions of the UCC (collectively, "Signature Law"), in each case to the extent applicable. Each faxed, scanned, or photocopied manual signature, or other electronic signature, shall for all purposes have the

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same validity, legal effect, and admissibility in evidence as an original manual signature. Each party hereto shall be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature, or other electronic signature, of any other party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity thereof.

(d)&nbsp;&nbsp;&nbsp;&nbsp;***Headings.*** The headings used in this Amendment are for convenience of reference only and are not to affect the construction of or to be taken into consideration in interpreting this Amendment.

(e)&nbsp;&nbsp;&nbsp;&nbsp;The recitals contained in this Amendment shall be taken as the statements of the Issuer and the Trustee assumes no responsibility for their correctness. The Trustee makes no representation as to the validity or sufficiency of this Amendment and in entering into this Amendment, the Trustee shall be entitled to the benefit of every provision of the Indenture relating to the conduct of or affecting the liability of or affording protection to the Trustee.

(f)&nbsp;&nbsp;&nbsp;&nbsp;***Governing Law.*** This Amendment will be governed by and construed in accordance with the laws of the State of New York (without reference to the choice of law doctrine).

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**IN WITNESS WHEREOF**, the parties have executed this Amendment with effect from the date and year first above written.

FSSL FINANCE BB ASSETCO LLC,<br>as Issuer

By: <u>/s/ Edward T. Gallivan, Jr.</u><br>Name: Edward T. Gallivan, Jr.<br>Title: Chief Financial Officer<br>

COMPUTERSHARE TRUST COMPANY, N.A.,<br>as Trustee

By: <u>/s/ Thomas J. Gateau</u><br>Name: Thomas J. Gateau<br>Title: Vice President

BARCLAYS BANK PLC,

as Liquidation Agent, Repo Buyer, Existing Noteholder and beneficiary of Guaranty

By: <u>/s/ Jayant Kumar</u><br>Name: Jayant Kumar<br>Title: Managing Director

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

[*Signature Page to Omnibus Amendment (Barclays-FS)*]

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FS SPECIALTY LENDING FUND,<br>as Guarantor and as Investment Manager

By: <u>/s/ Edward T. Gallivan, Jr.</u> <br>Name: Edward T. Gallivan, Jr. <br>Title: Chief Financial Officer

FSSL FINANCE BB SELLER LLC,<br>as Repo Seller,

By: <u>/s/ Edward T. Gallivan, Jr.</u><br>Name: Edward T. Gallivan, Jr.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;**Title: Chief Financial Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

[*Signature Page to Omnibus Amendment (Barclays-FS)*]

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**Exhibit A**

**Master Confirmation**

[*See attached*.]

Exhibit A

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Execution Version

<u>Conformed through Omnibus Amendment dated August 12, 2025</u>

MASTER CONFIRMATION

DATE:&nbsp;&nbsp;&nbsp;&nbsp;September 6, 2023<br><u>AMENDMENT DATE: August 12, 2025 (the "</u>**<u>2025 Amendment Date</u>**<u>")</u><br>TO:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FSSL Finance BB Seller LLC ("**Counterparty**")<br>FROM:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barclays Bank PLC ("**Barclays**")<br>SUBJECT:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase Facility<br>REF. NO.:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3ANTYZ<br>

The purpose of this (this "**Confirmation**") is to set forth the terms and conditions of the above-referenced Repurchase Facility entered into on the Trade Date specified below<u>(the "</u>**<u>Original Facility</u>**<u>") and the Repurchase Facility entered into on the 2025 Amendment Date (the "</u>**<u>Incremental Facility</u>**<u>", together with the Original Facility, the "</u>**<u>Facility</u>**<u>"), in each case,</u> between Barclays and Counterparty (the "**Facility**"). This communication constitutes a "Confirmation" as referred to in the Master Repurchase Agreement specified below. **This communication supersedes and replaces all prior communications between the parties hereto with respect to the Facility and Transactions described below.**

This Confirmation shall supplement, form a part of, and be subject to, the Master Repurchase Agreement (including the Annexes thereto) dated as of September 6, 2023, each as further amended or replaced from time to time (collectively, the "**Master Repurchase Agreement**"), between Barclays and Counterparty. This Confirmation shall be read and construed as one with the executed Master Repurchase Agreement and all other outstanding confirmations between the parties, so that all such confirmations, this Confirmation and the executed Master Repurchase Agreement constitute a single Agreement between the parties. Except as expressly modified hereby, all provisions contained in, or incorporated by reference into, the Master Repurchase Agreement shall govern each Transaction hereunder. In the event of any inconsistencies between the Master Repurchase Agreement and this Confirmation, this Confirmation will govern with respect to the Transactions covered hereby (and the last sentence of Paragraph 3(b) of the Master Repurchase Agreement shall not apply to any such Transaction). In the event of any inconsistencies between Annex A hereto and this Confirmation with respect to any Transaction, the terms of Annex A with respect to such Transaction will govern. System-generated confirmations of trade may be generated by Barclays that set forth the trade terms of the individual repurchase transactions described in this Confirmation; and, if any such system-generated confirmations of trade are generated and there is any inconsistency between such system-generated confirmations of trade and this Confirmation or the Master Repurchase Agreement, then the terms of this Confirmation or the Master Repurchase Agreement, as the case may be, shall prevail. Capitalized terms not defined herein have the meaning ascribed to them in the Master Repurchase Agreement, the Security Indenture or the Margining Agreement, as applicable.

This Confirmation evidences a separate transaction with respect to each Purchased Security specified in Annex A from time to time as if the details specified in Annex A with respect to that Purchased Security were set out in the Confirmation in full; *provided*, however, that for all purposes hereunder, all transactions with respect to each Purchased Security shall be deemed to constitute a single "**Transaction**". The terms of the Facility and the Transaction to which this Confirmation relates are as follows:

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| |
|:---|
| **(A)&nbsp;&nbsp;&nbsp;&nbsp;Terms Related to the Facility** |
| **1.&nbsp;&nbsp;&nbsp;&nbsp;Basic Terms** |

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| | |
|:---|:---|
| ***Buyer*** | Barclays |
| ***Seller*** | Counterparty |
| ***Trade Date*** | September 6, 2023 |
| ***Facility Commencement Date*** | The Initial Purchase Date. |
| ***Purchase Date*** | (a)&nbsp;&nbsp;&nbsp;&nbsp;September 6, 2023 (the "**Initial Purchase Date**"); and<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;each date on which an Addition occurs (each such date, an "**Addition Purchase Date**"). |
| ***Facility End Date*** | <u>(a) With respect to the Original Facility, the date that is three (3) years after the 2025 Amendment Date; and</u> <br><u>(b) with respect to the Incremental Facility, the date that is eighteen (18) months after the 2025 Amendment Date, provided that if Seller elects at its sole discretion to extend the Facility End Date with respect to the Incremental Facility and provides written notice to the Buyer at least three (3) Business Days prior to the date that is eighteen (18) months after the 2025 Amendment Date, then upon the date of satisfaction of the Incremental Facility Extension Conditions (the "</u>**<u>Optional Extension Date</u>**<u>"), the Facility End Date with respect to the Incremental Facility will be extended to the date that is three (3) years after the 2025 Amendment Date (such extension, the "</u>**<u>Incremental Facility Extension</u>**<u>").</u><br>September 6, 2026 |
| ***Ramp-Up Period*** | The period commencing on and including the Facility Commencement Date and ending on and including the 90<sup>th</sup> calendar day thereafter. |
| ***Aggregate Purchased Security Notional Amount*** | At any time, the sum of the Purchased Security Notional Amounts under all Transactions for which a Purchase Date has occurred at or prior to such time. |
| ***Minimum Purchase Price Amount*** | (a) During the Ramp-Up Period, the Initial Purchase Price; and<br><u>(b) at any time after the Ramp-Up Period up to and excluding the 2025 Amendment Date, the product of (i) the Maximum Aggregate Facility Size in effect at such time and (ii) 80%;</u> <br><u>(c) during the Post 2025 Amendments Ramp-Up Period, the product of (i) USD 500,000,000.00 minus the Aggregate Facility Reduction Amount at such time, and (ii) 80%; and</u> <br>(b<u>d</u>) at any time after the <u>Post 2025 Amendments</u> Ramp-Up Period, the product of (i) the Maximum Aggregate Facility Size in effect at such time and (ii) 80%.  |

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| | |
|:---|:---|
| ***Maximum Aggregate Facility Size*** | <u>At any time,</u> <br>At any time<u>(a) during the period prior to the 2025 Amendment Date</u>, USD 500,000,000.00 minus the Aggregate Facility Reduction Amount at such time.<u>;</u><br><u>(b) during the period from the 2025 Amendment Date to the date that is eighteen (18) months after the 2025 Amendment Date, USD 650,000,000.00 minus the Aggregate Facility Reduction Amount at such time; and</u><br><u>(c) during the period from and after the date that is eighteen (18) months after the 2025 Amendment Date, (i) if the Incremental Facility Extension is effective, USD 650,000,000.00 minus the Aggregate Facility Reduction Amount at such time, or (ii) otherwise, USD 500,000,000.00 minus the Aggregate Facility Reduction Amount at such time (provided that any Facility Reduction amounts up to USD 150,000,000.00 occurring during the period from the 2025 Amendment Date to the date that is eighteen (18) months after the 2025 Amendment Date shall not be included in the Aggregate Facility Reduction Amount for purposes of this clause (c)(ii) only).</u>  |
| ***Aggregate Facility Reduction Amount*** | At any time, the aggregate amount of Facility Reductions which have become effective on or prior to such date |
| ***Facility Reduction*** | On any Business Day, Seller may elect by written notice to Buyer to permanently reduce the Maximum Aggregate Facility Size in whole or in part; provided that any such election (i) shall be effective no earlier than 2 Business Days following Buyer's receipt of written notice; and (ii) shall be accompanied by any Make-Whole Amounts required in connection therewith pursuant to Part (B)(3) hereof. |
| ***Undrawn Facility Amount*** | At any time, an amount equal to the (i) then-current Maximum Aggregate Facility Size *minus* (ii) the aggregate Purchase Price of all of the Purchased Securities  |
| ***Eligible Securities*** | (a)&nbsp;&nbsp;&nbsp;&nbsp;FSSL FIN BB ASSETCO LLC Floating Rate 144A Notes due July 1, 2033.<br>CUSIP No. 30332C AA7; and<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;FSSL FIN BB ASSETCO LLC Floating Rate Reg-S Notes due July 1, 2033.<br>CUSIP No. U3486T AA8.<br>For the avoidance of doubt, each Purchased Security for each Transaction under this Confirmation shall consist of one of the Eligible Securities identified above. |
| ***Security Issuer*** | FSSL Finance BB AssetCo LLC |
| ***Business Days*** | Any day on which commercial banks are open in each of New York City, London and the city in which the corporate trust office of the Trustee is located. |
| ***Business Day Convention*** | Modified Following |

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| | |
|:---|:---|
| ***Calculation Agent*** | Barclays, provided that if (a) an Event of Default has occurred and is continuing with respect to Barclays as the defaulting party or (b) Barclays fails in any of its material obligations in its capacity as the Calculation Agent, then Counterparty may select an Independent Dealer for the relevant Transaction, to act as Calculation Agent (a "**Substitute Calculation Agent**"). Barclays or the Substitute Calculation Agent shall make each calculation in good faith and in a commercially reasonable manner.  |
| ***Security Indenture*** | Shall mean that certain Indenture, dated as of September 6, 2023 (as amended, restated, supplemented or otherwise modified from time to time), by and among Security Issuer, as the Issuer and Computershare Trust Company, N.A., as the Trustee, together with any other underlying instruments governing the Purchased Securities. |
| ***Margining Agreement*** | Shall mean that certain Margining Agreement, dated as of September 6, 2023 (as amended, restated, supplemented or otherwise modified from time to time), by and among Security Issuer, as the Issuer, FS Energy and Power Fund, as the Investment Manager, and Barclays as the Liquidation Agent (each term as defined thereunder). |
| ***Initial Fee*** | On the Initial Fee Payment Date specified below, Seller shall pay to Buyer the Initial Fee Amount specified below. The Initial Fee shall be fully earned when paid and there shall be no rebate thereof, notwithstanding the failure to occur of any Purchase Date or the occurrence of any early Repurchase Date. |
| ***Initial Fee Payment Date*** | The Trade Date |
| ***Initial Fee Amount*** | USD5,000,000 |
| ***<u>2025 Amendment Fee</u>*** | <u>On the 2025 Amendment Date, Seller shall pay to Buyer the 2025 Amendment Fee Amount specified below. The 2025 Amendment Fee shall be fully earned when paid and there shall be no rebate thereof, notwithstanding the failure to occur of any Purchase Date or the occurrence of any early Repurchase Date.</u> |
| ***<u>2025 Amendment Fee Amount</u>*** | <u>0.663461538% of USD 650,000,000</u> |
| ***<u>Optional Extension Fee</u>*** | <u>On the Optional Extension Date, Seller shall pay to Buyer the Optional Extension Fee Amount specified below. The Optional Extension Fee shall be fully earned when paid and there shall be no rebate thereof, notwithstanding the failure to occur of any Purchase Date or the occurrence of any early Repurchase Date.</u> |
| ***<u>Optional Extension Fee Amount</u>*** | <u>0.375% of the positive difference on such day (floored at zero), between (x) the then-current Maximum Aggregate Facility Size on such day</u> *<u>minus</u>* <u>(y) USD 500,000,000</u> |
| ***<u>Post 2025 Amendments Ramp-Up Period</u>*** | <u>The period commencing on and including the 2025 Amendment Date and ending on and including the 90</u><sup>th</sup> <u>calendar day thereafter.</u> |

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| | |
|:---|:---|
| **2.&nbsp;&nbsp;&nbsp;&nbsp;Conditions Precedent to Effectiveness of the Facility** | **2.&nbsp;&nbsp;&nbsp;&nbsp;Conditions Precedent to Effectiveness of the Facility** |
| ***Conditions <u>Precedent to Effectiveness of the Original Facility</u>*** | It shall be a condition to the effectiveness of this Confirmation, and to the entry of the first Transaction hereunder, that the following conditions shall have been satisfied (or waived by Barclays), in form and substance satisfactory to Barclays in its sole and absolute discretion:<br>(a)&nbsp;&nbsp;&nbsp;&nbsp;Barclays shall have received the documents and certificates referred to in paragraph 7 to Annex I to the Master Repurchase Agreement, all in form and substance reasonably satisfactory to Barclays and its counsel in its sole discretion;<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;Barclays shall have received the Master Repurchase Agreement and this Confirmation duly executed by Counterparty, and shall have received executed copies of the Security Indenture (including the schedules and exhibits thereto) and all documents, certificates and opinions required to be delivered on or prior to the date of the issuance of the Purchased Securities pursuant thereto, all in form and substance reasonably satisfactory to Barclays in its sole discretion;<br>(c)&nbsp;&nbsp;&nbsp;&nbsp;no Default or Event of Default with respect to Counterparty or Barclays as the defaulting party has occurred under the Master Repurchase Agreement and is then continuing; and<br>(d)&nbsp;&nbsp;&nbsp;&nbsp;Barclays shall have received the full Initial Fee Amount as of the Trade Date. |
| ***<u>Conditions Precedent to Effectiveness of the Incremental Facility</u>*** | <u>It shall be a condition to the effectiveness of the extension of the Facility End Date with respect to the Incremental Facility, that the following conditions (the "</u>**<u>Incremental Facility Extension Conditions</u>**<u>") shall have been satisfied (or waived by Barclays), in form and substance satisfactory to Barclays in its sole and absolute discretion:</u><br><u>(a)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>Barclays shall have received the full Optional Extension Fee Amount from the Counterparty; and</u><br><u>(b)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>no Default or Event of Default with respect to Counterparty as the defaulting party has occurred under the Master Repurchase Agreement and is then continuing.</u> |

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| | |
|:---|:---|
| **3.&nbsp;&nbsp;&nbsp;&nbsp;Purchased Securities; Additions** | **3.&nbsp;&nbsp;&nbsp;&nbsp;Purchased Securities; Additions** |
| ***Purchased Securities*** | <u>(a)</u> On the Initial Purchase Date, upon satisfaction of the Conditions to Effectiveness with respect to the initial Transaction hereunder, Counterparty shall transfer to Barclays Purchased Securities comprising Eligible Securities having a total authorized principal amount of USD 500,000,000 and an initial funded outstanding principal amount of USD 500,000,000 in exchange for the payment by Barclays of the Initial Purchase Price.<br><u>(b) On the 2025 Amendment Date, upon satisfaction of the Amendment Conditions with respect to the Upsize Transaction, Counterparty shall authorize the amendments to the Eligible Securities described in prong (a) above such that the total authorized principal amount of such Eligible Securities shall be USD 1,000,000,000 and the funded outstanding principal amount of such Eligible Securities shall be USD 1,000,000,000, in exchange for the extension of the Facility End Date and provision by Barclays of the Incremental Facility.</u> |
| ***Conditions to Effectiveness*** | The effectiveness of the initial Transaction hereunder shall be subject to the satisfaction of each of the conditions precedent for such Transaction specified in the Master Repurchase Agreement and the satisfaction of each of the following additional conditions:<br>(a)&nbsp;&nbsp;&nbsp;&nbsp;the "Closing Date" under and as defined in the Security Indenture shall have occurred, and the Seller shall have subscribed to the purchase of the Eligible Security in an amount equal to the Initial Purchase Price for such Transaction pursuant to the execution of the Note Purchase Agreement;<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;no Default or Event of Default with respect to Counterparty or Barclays as the defaulting party has occurred under the Master Repurchase Agreement and is then continuing or would result from such Transaction becoming effective; and<br>(c)&nbsp;&nbsp;&nbsp;&nbsp;the "Borrowing Base Test" (as such term is defined under the Margining Agreement) is satisfied immediately before and would be satisfied immediately after giving effect to such Transaction.<br>Barclays shall prepare and deliver to Counterparty a completed Annex A (or another form setting forth information corresponding to that set forth on Annex A), reflecting the terms of such initial Transaction, reasonably promptly (and, in any case, no later than one (1) Business Day) following the satisfaction of the Conditions to Effectiveness for such Transaction. |

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|:---|:---|
| ***Additions*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On each Addition Purchase Date: <br>(a)&nbsp;&nbsp;&nbsp;&nbsp;Barclays shall purchase the Purchased Securities, and Counterparty shall sell the Purchased Securities, in each case, in the amount of such Agreed Addition Purchase Price, in exchange for the payment by Barclays of the applicable Agreed Addition Purchase Price on such Addition Purchase Date, and for the purposes of such purchase and sale under this clause (a), the Purchased Securities shall be deemed to be the increase in the Redemption Price of the Purchased Securities that have been purchased by Barclays, and sold by Counterparty, immediately prior to such Addition Purchase Date;<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;the Purchase Price shall be increased by an amount requested by Counterparty in writing (which writing may be in the form of an email) at least 2 Business Days prior to the proposed Addition Purchase Date (the amount so requested, the "**Agreed Addition Purchase Price**"), provided that the Agreed Addition Purchase Price requested by Counterparty shall be zero unless each of the following conditions is satisfied:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)the Agreed Addition Purchase Price requested by Counterparty for any Addition Purchase Date would not result in the aggregate Purchase Price funded by Barclays hereunder (after giving effect to the payment by Barclays of such Agreed Addition Purchase Price) exceeding (x) the then-current Maximum Aggregate Facility Size *minus* (y) the Aggregate Unfunded Exposure Leverage Amount (determined on a pro forma basis after giving effect to any Purchase or sale of, or funding of unfunded commitments under, any Collateral Obligations to be effected by the Security Issuer on such date);<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)(i) no Default or Event of Default with respect to Counterparty as the defaulting party has occurred under the Master Repurchase Agreement and is then continuing on and as of the Addition Purchase Date or would result from such Addition becoming effective, (ii) the "Borrowing Base Test" (as such term is defined under the Margining Agreement) is satisfied immediately before and would be satisfied immediately after giving effect to such Addition; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)all of the representations and warranties contained in the Master Repurchase Agreement and the Transaction Documents shall be true and correct in all material respects (or with respect to such representations and warranties which by their terms contain materiality qualifiers, shall be true and correct), in each case on and as of the Addition Purchase Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (or with respect to such representations and warranties which by their terms contain materiality qualifiers, shall be true and correct) as of such earlier date,<br>*provided*, that no more than one (1) Addition (or such greater number of times as the Buyer consents to in writing (including via email) in its sole discretion) may occur during each consecutive seven calendar day period.<br>(The increase in the Purchase Price pursuant to and in accordance with clause (b) above, an "**Addition**".) <br>Immediately following the Addition in accordance with the foregoing, Counterparty and Barclays shall confirm to each other the revised Purchase Price, which confirmation may be in the form of exchange of emails between the parties. |

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| | |
|:---|:---|
| **(B)&nbsp;&nbsp;&nbsp;&nbsp;Terms Relating to Each Transaction** | **(B)&nbsp;&nbsp;&nbsp;&nbsp;Terms Relating to Each Transaction** |
| **1.&nbsp;&nbsp;&nbsp;&nbsp;General Terms** | **1.&nbsp;&nbsp;&nbsp;&nbsp;General Terms** |
| ***Terms Specified in Annex A*** | The following terms in relation to the initial Transaction will be specified in Annex A (by the Calculation Agent):<br>•&nbsp;&nbsp;&nbsp;&nbsp;Transaction Number (to be assigned by the Calculation Agent)<br>•&nbsp;&nbsp;&nbsp;&nbsp;Security Issuer (which shall be FSSL Finance BB AssetCo LLC)<br>•&nbsp;&nbsp;&nbsp;&nbsp;Purchased Security (which shall be an Eligible Security)<br>•&nbsp;&nbsp;&nbsp;&nbsp;Purchase Date (which shall be the Business Day on which the Conditions to Effectiveness for such Transaction are satisfied)<br>•&nbsp;&nbsp;&nbsp;&nbsp;Initial Purchase Price |
| ***Purchased Security Notional Amount*** | For each Transaction, the original par amount of the Eligible Security that is purchased hereunder in such Transaction (determined without regard to paydowns on such Eligible Security occurring at any time). |
| ***Purchase Price*** | An amount equal to (i) USD 80,000,000 (the **"Initial Purchase Price**") *plus* (ii) each Agreed Addition Purchase Price effected pursuant to each Addition validly effected hereunder *minus* (iii) each Voluntary Prepayment Amount effected pursuant to each Voluntary Prepayment executed hereunder. |
| ***Temporary Purchase Price Reduction*** | Any Voluntary Prepayment that is not accompanied by a simultaneous Facility Reduction. |
| ***Permanent Purchase Price Reduction*** | Any Voluntary Prepayment that is accompanied by a simultaneous Facility Reduction. |

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|:---|:---|
| ***Purchase Price Reduction*** | Seller may elect to prepay all or a portion of the Repurchase Price of the Purchased Securities (a "**Voluntary Prepayment**") upon by notifying Buyer in writing not later than 5:00 p.m., New York City time, two (2) Business Days (or shorter period as agreed to by the Buyer) before the date of the proposed prepayment (a "**Prepayment Date**"); provided that such Voluntary Prepayment satisfies the Purchase Price Reduction Conditions.<br>On each Prepayment Date:<br>(a)&nbsp;&nbsp;&nbsp;&nbsp;Buyer shall transfer to Seller or its agent Purchased Securities, which transfer shall be deemed to be in the form of a reduction in the Redemption Price of the Purchased Securities immediately following such Prepayment;<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;Seller shall pay to the Buyer the Voluntary Prepayment Amount; and<br>(c)&nbsp;&nbsp;&nbsp;&nbsp;for each Purchased Security that is the subject of such Voluntary Prepayment, the Repurchase Price for such Purchased Security immediately after giving effect to such Voluntary Prepayment shall be equal to (x) the Repurchase Price thereof immediately prior to such prepayment minus (y) the related Voluntary Prepayment Amount for such Purchased Security.<br>Immediately following the operation of "Purchase Price Reduction" in accordance with the foregoing, Seller and Buyer shall confirm to each other the revised Purchase Price, which confirmation may be in the form of exchange of emails between the parties (which emails shall attach an updated Annex A). |

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|:---|:---|
| ***Purchase Price Reduction Conditions*** | With respect to each Voluntary Prepayment (whether or not accompanied by a Facility Reduction):<br>(a) &nbsp;&nbsp;&nbsp;&nbsp;Seller notifies Buyer at least 2 Business Days prior written notice of the proposed Voluntary Prepayment Date that it wishes to reduce the Purchase Price (such reduction amount, the "**Voluntary Prepayment Amount**"); and<br>with respect to each Temporary Purchase Price Reduction (for the avoidance of doubt, the following conditions shall not apply to any Permanent Price Reductions):<br>(b)&nbsp;&nbsp;&nbsp;&nbsp; Voluntary Prepayment Amount shall not be less than the lesser of (x) USD 2,000,000 (or such lower amount as approved by Buyer in its sole discretion) and (y) the Purchase Price at such time; <br>(c) &nbsp;&nbsp;&nbsp;&nbsp;[reserved];<br>(d) &nbsp;&nbsp;&nbsp;&nbsp;(1) no Default or Event of Default with respect to Seller as the defaulting party shall have occurred and be continuing, in each case, on and as of the Prepayment Date of such Voluntary Prepayment, and (2) the "Borrowing Base Test" (as such term is defined under the Margining Agreement) would be satisfied immediately after giving effect to such Voluntary Prepayment; <br>(e)&nbsp;&nbsp;&nbsp;&nbsp;no more than one (1) Voluntary Prepayment (or such greater number of times as the Buyer consents to in writing (including via email) in its sole discretion) may occur during each consecutive seven calendar day period; and<br>(f)&nbsp;&nbsp;&nbsp;&nbsp;Seller shall have provided an officer's certificate to Buyer confirming that the foregoing conditions are satisfied (which certificate may be unsigned and be in the form of an email so long as such email is sent by an officer of Seller). |

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| ***Repurchase Date*** | In relation to any Purchased Security (or portion thereof) in each Transaction, the earliest to occur of: <br>(a) &nbsp;&nbsp;&nbsp;&nbsp;the Scheduled Repurchase Date for such Purchased Security;<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;the date on which the non-defaulting party exercises its option to declare an Event of Default pursuant to Section 11 of the Master Repurchase Agreement;<br>(c)&nbsp;&nbsp;&nbsp;&nbsp;[reserved];<br>(d)&nbsp;&nbsp;&nbsp;&nbsp;the date (if any) on or following the occurrence of a Regulatory Change specified in writing by Barclays to Counterparty;<br>(e)&nbsp;&nbsp;&nbsp;&nbsp;the Specified Repurchase Date (if any) specified in writing by Counterparty to Barclays in connection with a Specified Repurchase Event; <br>(f)&nbsp;&nbsp;&nbsp;&nbsp;the Optional Repurchase Date (if any) specified in writing by Counterparty to Barclays; and<br>(g)&nbsp;&nbsp;&nbsp;&nbsp;the date (if any) it becomes unlawful for the Equity Owner (as defined in the Security Indenture), Counterparty, the Investment Manager or the Security Issuer to perform any of its material covenants, agreements or obligations under any of the Transaction Documents (as defined in the Security Indenture). |
| ***Scheduled Repurchase Date*** | For each Transaction, the Facility End<u>date that is three (3) years after the 2025 Amendment</u> Date.  |
| ***Optional Repurchase Date*** | With respect to a Transaction, on any Business Day, Counterparty<u>Seller</u> may elect by written notice <u>to Buyer</u> (an "**Optional Repurchase Date Notice**") to Buyer repurchase the entirety, of the then outstanding Purchased Securities subject to such Transaction upon (i) prepaying the entirety of the then outstanding Repurchase Price by way of a Permanent Purchase Price Reduction pursuant to the execution of a Voluntary Prepayment in accordance with the terms hereof and (ii) effecting a Facility Reduction in accordance with the terms hereof in an amount equal to the excess of (i) the then-current Maximum Aggregate Facility Size and (ii) the then-outstanding Purchase Price; provided that any such election shall be effective no earlier than 2 Business Days (such date, an "**Optional Repurchase Date**") following Buyer's receipt of written notice. |
| ***Optional Repurchase Notice Date*** | With respect to any Optional Repurchase Date Notice, the date on which such Optional Repurchase Date Notice is received by Barclays (or, if any such day is not a Business Day, the next succeeding Business Day). |

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| ***Specified Repurchase Event*** | With respect to a Transaction, the occurrence of any of the following:<br>(a)&nbsp;&nbsp;&nbsp;&nbsp;Barclays provides written notice to Counterparty that Barclays has elected to sell or rehypothecate (such that Barclays does not have a contractual right to call or otherwise reacquire such Purchased Securities) all or a portion of the Purchased Securities to a Competitor or any of its Affiliates;<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;Barclays provides written notice to Counterparty that Barclays will no longer (due to a change in law, change in internal policies or otherwise) be able to (i) hold 100% of the voting rights or control (direct or indirect) over the Purchased Securities or to direct the vote of the Purchased Securities or (ii) acquire, control, hold or own any of the Purchased Securities within the next 10 Business Days; **or**<br>(c)&nbsp;&nbsp;&nbsp;&nbsp;Barclays provides written notice to Counterparty that an event of default (or similar event) or a termination event (or similar event) has occurred under a Hedging Arrangement where Barclays is the defaulting party or the affected party (as the case may be).<br>Barclays shall notify Counterparty (i) at least 10 Business Days prior to the occurrence of any event described in clauses (a) or (b) above and (ii) promptly (and, in any case, no later than two (2) Business Day) following any event described in clause (c) above.<br>"**Competitor**" means any Person primarily engaged in the business of private investment management as a business development company, strategic opportunities or specialty lending fund, mezzanine fund, debt fund, hedge fund or private equity fund, which is in direct or indirect competition with the Investment Manager, Counterparty or Equity Owner (as defined in the Security Indenture), or any Affiliate thereof that is an investment advisor, (b) any Person controlled by, or controlling, or under common control with, or which is a sponsor of, a Person referred to in clause (a) above, (c) any Person for which a Person referred to in clause (a) above serves as an investment advisor with discretionary investment authority or (d) any Person as agreed to in writing among Counterparty (or the Investment Manager) and Barclays from time to time.<br>"**Hedging Arrangement**" means any transaction or agreement (or series of transactions and/or agreements) entered into by Barclays or any of its Affiliates (or any financing vehicle or trust) with a third-party (i) in order to hedge Barclays' exposure under the Transactions or (ii) wherein Barclays has received financing secured by the Purchased Securities (for the avoidance of doubt, which financing may be in the form of a total return swap transaction, a repurchase transaction or other derivatives-based financing). |

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| ***Specified Repurchase Date*** | With respect to a Transaction, upon the occurrence of any Specified Repurchase Event, Counterparty may elect by written notice to Barclays to designate a Repurchase Date in respect of all Purchased Securities subject to such Transaction (a "**Specified Repurchase Date**"); provided that such Specified Repurchase Date shall occur no earlier than 2 Business Days following delivery of such written notice to Barclays.<br>Immediately following the repurchase of Purchased Securities on the Specified Repurchase Date, the then-current Maximum Aggregate Facility Size and the Minimum Purchase Price Amount shall be reduced, in each case, by the reduction in the Purchase Price(s) of such repurchased Purchased Securities. For the avoidance of doubt, no Make-Whole Amount shall be payable by Counterparty in connection with a Specified Repurchase Event. |

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| ***Regulatory Change*** | Any enactment or establishment of or supplement or amendment to, or change in any law, regulation, rule, policy or guideline (including any accord or standard of the Basel Committee on Banking Supervision, the Federal Reserve Board or any state banking regulator) or in the application or official interpretation of any such law, regulation, rule, policy or guideline that, in each case, becomes effective on or after the Facility Commencement Date and is binding on or otherwise has an effect on Barclays and, as a result of which, in the reasonable determination of Barclays, for reasons outside Barclays' control or the control of any of its Affiliates, Barclays will (either by voluntary submission or by applicable law) no longer be permitted to enter into or maintain any Transaction hereunder or be subject to materially less favorable regulatory capital treatment with respect to the Transactions by comparison to the regulatory capital treatment applicable as a result of the entry into this<u>the Original</u> Facility on the Facility Commencement Date.<br>To the extent practicable, as determined by Barclays, Barclays shall promptly give Counterparty notice of a Regulatory Change that Barclays expects to occur with reasonable certainty. <br>Before declaring a Repurchase Date due to the occurrence of a Regulatory Change, Barclays shall take commercially reasonable measures to eliminate or mitigate the impact of such Regulatory Change (which, for the avoidance of doubt, includes but is not limited to Barclays using commercially reasonable efforts to restructure the Transactions under this Confirmation with Counterparty to make them compliant (in the case of any such changes that would restrict entry into or maintenance of Transactions) or more efficient from a regulatory perspective (in the case of any such changes that would result in less favorable regulatory capital treatment), *provided* that Counterparty is under no obligation to agree to any such restructuring or any other changes to the terms of this Confirmation or the Master Repurchase Agreement.<br>Notwithstanding anything to the contrary, Barclays may not declare a Repurchase Date due to the occurrence of a Regulatory Change unless Barclays has provided Counterparty with at least 120 days prior written notice of such impending Regulatory Change. |
| ***Underlying Asset*** | Each "Collateral Obligation" (as defined in the Security Indenture) that is owned by the Security Issuer from time to time |

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| **2.&nbsp;&nbsp;&nbsp;&nbsp;Financing Fees** | **2.&nbsp;&nbsp;&nbsp;&nbsp;Financing Fees** |
| ***Financing Fee Payments*** | In lieu of accrual and payment of Price Differential in respect of the Transactions subject to this Confirmation, on each Financing Fee Payment Date, Counterparty shall pay to Barclays an amount in USD (the "**Financing Fee Payment**") equal to the sum of:<br>(a)&nbsp;&nbsp;&nbsp;&nbsp;the product of (i) the Floating Rate Calculation Amount for the most recently ended Financing Fee Period multiplied by (ii) the Floating Rate for such Financing Fee Period multiplied by (iii) the Financing Fee Day Count Fraction for such Financing Fee Period; plus<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;the product of (i) the Spread Calculation Amount for the most recently ended Financing Fee Period multiplied by (ii) the Spread for such Financing Fee Period multiplied by (iii) the Financing Fee Day Count Fraction for such Financing Fee Period (the payment amount determined under this clause (b) being, the "**Spread Payment Amount**"); plus<br>(c)&nbsp;&nbsp;&nbsp;&nbsp;the product of (i) the Commitment Fee Calculation Amount for the most recently ended Financing Fee Period multiplied by (ii) the Commitment Fee Rate multiplied by (iii) the Financing Fee Day Count Fraction for such Financing Fee Period.<br>For the avoidance of doubt, paragraph 2(k) the Master Repurchase Agreement shall not apply. |
| ***Floating Rate Calculation Amount*** | For any Financing Fee Period:<br>(a)&nbsp;&nbsp;&nbsp;&nbsp;The sum, for each day in such Financing Fee Period, of the aggregate Purchase Prices for all outstanding Transactions subject to this Confirmation on such day; *divided by*<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;the number of days in such Financing Fee Period with respect to each such Transaction. |
| ***Spread Calculation Amount*** | For any Financing Fee Period:<br>(a)&nbsp;&nbsp;&nbsp;&nbsp;The sum of the Daily Spread Calculation Amounts for each day in such Financing Fee Period; *divided by*<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;the number of days in such Financing Fee Period. |
| ***Daily Spread Calculation Amount*** | For any day, the greater of (a) the Minimum Purchase Price Amount on such day; and (b) the aggregate Purchase Prices for all outstanding Transactions subject to this Confirmation on such day. |

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| ***Commitment Fee Calculation Amount*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For any Financing Fee Period:<br>(i) &nbsp;&nbsp;&nbsp;&nbsp;**<u>During Ramp-Up Period</u>**: With respect to each day in such Financing Fee Period that occurs during the Ramp-Up Period:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;The sum, for each day in any Financing Fee Period, of the Undrawn Facility Amount on such day; *divided by*<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;the number of days in such Financing Fee Period (or if the last day of the Ramp-Up Period occurs during such Financing <u>Fee</u> Period, the number of days from and including the Initial Purchase Date to but excluding<u>and including</u> the last day of such Financing Fee<u>the Ramp-Up</u> Period).<br><u>(ii)</u> &nbsp;&nbsp;&nbsp;&nbsp;**<u>After Ramp-Up Period</u> <u>but prior to the 2025 Amendment Date</u>**<u>: with respect to each day in such Financing Fee Period that occurs after the Ramp-Up Period but prior to the 2025 Amendment Date:</u><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>The sum, for each day in any Financing Fee Period, of the lesser of:</u><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(1)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>the Undrawn Facility Amount on such day; and</u><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(2)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>the positive difference on such day (floored at zero), between (x) the then-current Maximum Aggregate Facility Size on such day</u> *<u>minus</u>* <u>(y) the Minimum Purchase Price Amount on such day;</u> *<u>divided by</u>*<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>the number of days in such Financing Fee Period (or if the last day of the Ramp-Up Period occurs during such Financing Fee Period, the remaining number of days from and excluding such last day to and excluding the last day of such Financing Fee Period, or if the 2025 Amendment Date occurs during such Financing Fee Period, the remaining number of days from and including the first day in such Financing Fee Period to but excluding the 2025 Amendment Date).</u><br><u>(iii)</u>&nbsp;&nbsp;&nbsp;&nbsp;**<u>During the Post 2025 Amendments Ramp-Up Period:</u>** <u>With respect to each day in such Financing Fee Period that occurs during the Post 2025 Amendments Ramp-Up Period:</u><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>The sum, for each day in any Financing Fee Period, of the lesser of:</u><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(1)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>the Undrawn Facility Amount on such day; and</u><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(2)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>the positive difference on such day (floored at zero), between (x) the then-current Maximum Aggregate Facility Size on such day</u> *<u>minus</u>* <u>(y) the Minimum Purchase Price Amount on such day (provided that, for the purposes of this clause (iii)(a), the "Maximum Aggregate Facility Size" in clause (i) of the definition of "Undrawn Facility Amount" and in subclause (2) hereof shall be deemed to be an amount equal to USD 500,000,000 minus the Aggregate Facility Reduction Amount on such day);</u> *<u>divided by</u>*<br>&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>the number of days in such Financing Fee Period (or if the 2025 Amendment Date occurs during such Financing Fee Period, the remaining number of days from and including the 2025 Amendment Date to and excluding the last day of such Financing Fee Period, or if the last day of the Post 2025 Amendments Ramp-Up Period occurs during such Financing Fee Period, the remaining number of days from and including the first day in such Financing Fee Period to and including the last day of the Post 2025 Amendments Ramp-Up Period).</u><br>(ii<u>iv</u>) &nbsp;&nbsp;&nbsp;&nbsp;**<u>After</u> <u>the Post 2025 Amendments</u> <u>Ramp-Up Period</u>**: with respect to each day in such Financing Fee Period that occurs after the <u>Post 2025 Amendments</u> Ramp-Up Period:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The sum, for each day in any Financing Fee Period, of the lesser of:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Undrawn Facility Amount on such day; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the positive difference on such day (floored at zero), between (x) the then-current Maximum Aggregate Facility Size on such day *minus* (y) the Minimum Purchase Price Amount on such day; *divided by*<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the number of days in such Financing Fee Period (or if the last day of the <u>Post 2025 Amendments</u> Ramp-Up Period occurs during such Financing <u>Fee</u> Period, the remaining number of days from and excluding such last day to and including<u>excluding</u> the last day of such Financing Fee Period). |

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| ***Spread*** | For any Facility Fee Period, a per annum rate equal to sum of the Weighted Average Facility Applicable Margin for such Facility Fee Period. |
| ***Weighted Average Facility Applicable Margin*** | For any Facility Fee Period, a per annum rate equal to:<br>(a)&nbsp;&nbsp;&nbsp;&nbsp;The sum, for each day in any Financing Fee Period, of the product of:<br>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Facility Applicable Margin in effect on such day; and<br>&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the Daily Spread Calculation Amount for such day; *divided by*<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;the sum of the Daily Spread Calculation Amounts for each day in such Financing Fee Period. |
| ***Commitment Fee Rate*** | (a)&nbsp;&nbsp;&nbsp;&nbsp;During the Ramp-Up Period: 0.50% per annum; and<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;following the Ramp-Up Period: 0.40% per annum. |
| ***Financing Fee Payment Dates*** | (a)&nbsp;&nbsp;&nbsp;&nbsp;The 20<sup>th</sup> calendar day of each March, June, September and December in each year (or, if any such day is not a Business Day, the next succeeding Business Day), commencing with December 20, 2023; and<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;the Facility End<u>date that is three (3) years after the 2025 Amendment</u> Date. |
| ***Financing Fee Period End Dates*** | (a)&nbsp;&nbsp;&nbsp;&nbsp;The 15<sup>th</sup> calendar day of each March, June, September and December in each year, commencing with December 15, 2023; and<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;the Facility End<u>date that is three (3) years after the 2025 Amendment</u> Date. |
| ***Financing Fee Period*** | Each period beginning on, and including, a Financing Fee Period End Date (or, in the case of the first Financing Fee Period, beginning on, and including, the Facility Commencement Date) and ending on, and excluding, the immediately following Financing Fee Period End Date. |

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| ***Floating Rate*** | For any Financing Fee Period, Term SOFR for such Financing Fee Period.<br>"**Term SOFR**" for any Financing Fee Period shall be the Term SOFR Reference Rate for a tenor comparable to the applicable Financing Fee Period on the day (such day, the "Periodic Term SOFR Determination Day") that is two (2) U.S. Government Securities Business Days prior to the first day of such Financing Fee Period, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day; provided further, that if Term SOFR shall ever be less than the 0.00%, then Term SOFR shall be deemed to be 0.00%.<br>"**Term SOFR Administrator**": The CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Calculation Agent in its reasonable discretion).<br>"**Term SOFR Reference Rate**": The rate per annum determined by the Calculation Agent as the forward-looking term rate based on the secured overnight financing rate.<br>"**U.S. Government Securities Business Day**": Any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities. |
| ***Facility Applicable Margin*** | For any date of determination, the "Facility Applicable Margin" (as defined in the Margining Agreement) determined for such date in accordance with the Margining Agreement. |
| ***Financing Fee Day Count Fraction*** | Actual/360 |
| ***Call Protection Reduction Amount*** | At any time, the "Call Protection Reduction Amount" (as defined in the Margining Agreement) determined at such time in accordance with the Margining Agreement. |

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| 3**.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Payment** | 3**.&nbsp;&nbsp;&nbsp;&nbsp;Make-Whole Payment** |
| ***Make-Whole Payment Requirement*** | Upon the occurrence of any Make-Whole Event, then Counterparty shall pay to Barclays, on the date of such Make-Whole Event, an amount equal to the Make-Whole Amount for such Make-Whole Event. |

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| ***Make-Whole Events*** | <br>(a) &nbsp;&nbsp;&nbsp;&nbsp;Each Facility Reduction <u>(other than a Facility Reduction effected in connection with a FSSL Registration Event that occurs within eighteen (18) months from and including the 2025 Amendment Date)</u>; and<br>(b) &nbsp;&nbsp;&nbsp;&nbsp;the termination of all of the Transactions by Buyer following the occurrence of a Repurchase Date with respect to all of the Transactions as a result of an Event of Default of Seller.  |
| ***Make-Whole Calculation Amount*** | (a)&nbsp;&nbsp;&nbsp;&nbsp;In connection with any Make-Whole Event under clause (a) &nbsp;&nbsp;&nbsp;&nbsp;of the definition of "Make-Whole Event", the amount of such &nbsp;&nbsp;&nbsp;&nbsp;Facility Reduction; and<br>(b)&nbsp;&nbsp;&nbsp;&nbsp;in connection with any Make-Whole Event under clause (b) &nbsp;&nbsp;&nbsp;&nbsp;of the definition of "Make-Whole Event", an amount equal &nbsp;&nbsp;&nbsp;&nbsp;to the greater of (determined immediately prior to giving effect to such Make-Whole Event) (i) the then-current Purchase Price and (ii) then-current Minimum Purchase Price;<br>provided that if the aggregate of the Call Protection Reduction Amount is greater than zero at the time of any Make-Whole Event, the Make-Whole Calculation Amount for such Make-Whole Event shall be reduced by such Call Protection Reduction Amount (floored at zero). |

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| ***Make-Whole Toggle Date*** | The date that is <u>the earlier of (i) eighteen (</u>18<u>)</u> months following the Facility Commencement Date<u>2025 Amendment Date and (ii) any reorganization of FS Specialty Lending Fund into a closed-end company that is registered under Section 8 of the 1940 Act ("</u>**<u>FSSL Registration Event</u>**<u>").</u>  |
| ***Make-Whole Amount*** | In connection with any Make-Whole Event occurring: <br>(a)&nbsp;&nbsp;&nbsp;&nbsp;on or prior to the Make-Whole Toggle Date, an amount equal to the aggregate amount of Spread Payment Amounts (calculated using (x) the Make-Whole Calculation Amount as the Spread Calculation Amount and (y) the Facility Applicable Margin determined as of the date on which such Make-Whole Event is notified in writing by Barclays to Counterparty) that would be payable by Counterparty to Barclays hereunder during the period from and including the date on which such Make-Whole Event occurs to but excluding the Make-Whole Toggle Date (*provided* that if, on any day in the period commencing on and including the 30<sup>th</sup> calendar day after the Facility Commencement Date and the last day of the Ramp-Up Period, the aggregate Purchase Prices of all the Transactions subject to this Confirmation is less than 80% of the then current Maximum Aggregate Facility Size<u>the then-current Minimum Purchase Price Amount</u>, then an additional calendar day shall be added for each such day to extend the Make-Whole Toggle Date), discounted to present value (using the Term SOFR discount curve published by Bloomberg and determined based on the remaining period between the date of occurrence of the relevant Make-Whole Event and the Make-Whole Toggle Date), all as calculated by the Calculation Agent; <u>and</u><br>(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>on or</u> after the Make-Whole Toggle Date and on or prior to the date that is 27 months following the Facility Commencement Date, an amount equal to 1.00% of the applicable Make-Whole Calculation Amount, as calculated by the Calculation Agent; and<u>, zero.</u><br>(c) after the date that is 27 months following the Facility Commencement Date, zero. |

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| **4.&nbsp;&nbsp;&nbsp;&nbsp;Application of Principal Payments.** | **4.&nbsp;&nbsp;&nbsp;&nbsp;Application of Principal Payments.** |
| ***Cash Principal Payment Provisions*** | On each date on which Barclays receives a payment (other than a payment of interest) on a Purchased Security in cash and in immediately available funds (each, a "**Cash Principal Payment**"), Barclays shall immediately apply such received payments towards the reduction of the Repurchase Price payable by Seller for such Purchased Security by an amount equal to such received payment (such amount, the "**Repurchase Price Reduction Amount**"). |

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**5.&nbsp;&nbsp;&nbsp;&nbsp;Additional Provisions**

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| ***Margin Maintenance*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the occurrence of a Trigger Event, Buyer may by notice (a "**Margin Call Notice**") to Seller require Seller in such Transactions to transfer to Buyer Eligible Margin in an amount equal to the Borrowing Base Cure Amount (as such term is defined under the Margining Agreement) necessary to effect the related Borrowing Base Cure (as such term is defined under the Margining Agreement) by the applicable Cure Deadline (as such term is defined under the Margining Agreement); provided that (i) Seller shall not be required to transfer the Borrowing Base Cure Amount unless such amount exceeds USD 250,000 and (ii) the "amount" of any U.S. treasury securities so transferred shall be the market value thereof (as determined by the Liquidation Agent in its sole discretion).<br>(b) In the event that at any time after Seller has effected a Borrowing Base Cure, the Facility Advance Rate exceeds the Borrowing Base Ratio, then, so long as immediately before and after giving effect thereto: (A) no Default or Event of Default shall have occurred and, in each case, is continuing with respect to Seller and (B) the Borrowing Base Test is and will remain satisfied:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)upon written notice to Buyer (such notice, an "**Excess Cure Collateral Refund Request Notice**"), Seller may request that Buyer return to Seller an amount of Net Margin (such requested amount, the "**Excess Cure Collateral Refund Amount**") such that following the transfer by Buyer to Seller, the Facility Advance Rate would not exceed the Borrowing Base Ratio; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)if (x) Buyer receives the Excess Cure Collateral Refund Request Notice prior to 10:00 A.M. New York City time on any Business Day, Buyer shall return such Excess Cure Collateral Refund Amount to Seller no later than the close of business on the same Business Day of such notice and (y) Buyer receives the Excess Cure Collateral Refund Request Notice after 10:00 A.M. New York City time on any Business Day, Buyer shall return such Excess Cure Collateral Refund Amount to Seller no later than the close of business on the next Business Day following such notice; provided that Buyer shall only be obligated to transfer such amount to Seller pursuant to the foregoing if (and only to the extent that):<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)such transfer by Buyer is a return of the Net Margin that has previously been transferred by Seller to Buyer pursuant to clause (a) above in respect of the Transaction and has not been previously returned by Buyer to Seller;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)immediately after giving effect to such transfer the Borrowing Base Test shall be satisfied on a pro forma basis; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)such amount is greater than USD 250,000.<br>"**Eligible Margin**" means cash in USD or U.S. treasury securities.<br>"**Net Margin**" means, at any time of determination, (x) the aggregate amount of USD transferred by Seller to Buyer pursuant to clause (a) above which has not been returned by Buyer to Seller pursuant to clause (b) above plus (y) the aggregate amount (based on market value as of such date of determination) of U.S. treasury securities (if any) transferred by Seller to Buyer pursuant to clause (a) above which have not been returned by Buyer to Seller pursuant to clause (b) above.  |

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| | |
|:---|:---|
| ***Default*** | Means any event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default. |
| ***Voting Rights*** | If at any time during the term of the Transaction, there is an occasion permitting an owner of the Purchased Securities to exercise any right in relation to such Purchased Securities, vote or otherwise to give or withhold consent with respect to an action proposed to be taken (or to be refrained from being taken) in relation to such Purchased Security (each, an "**Action**"), then Buyer shall notify Seller of such occasion..<br>Notwithstanding anything to the contrary, Buyer agrees and acknowledges that Buyer, in its capacity as the Liquidation Agent, under and as defined in the Security Indenture, shall not exercise any right to remove the investment manager of the Security Issuer other than in accordance with and subject to the terms of the Security Indenture and the other Transaction Documents (under and as defined in the Security Indenture). |
| ***Act of Insolvency*** | The definition of "Act of Insolvency" in Paragraph 1(a) of the Master Repurchase Agreement shall be amended such that, with respect to Seller as the defaulting party, the reference to "15 days" in clause (C) shall be deleted in its entirety and be replaced by "60 days". |
| ***Limit on Optional Redemptions*** | For so long as any Transaction is outstanding under this Confirmation (unless an Event of Default with respect to Counterparty has occurred and is then continuing), Barclays shall not, and shall not cause any Affiliate thereof or any other Person holding the Purchased Securities to, give the Security Issuer or the Trustee under the Security Indenture any direction to effect a redemption (in whole or in part) of the Purchased Securities. |
| ***Counterparty Note Restriction*** | Counterparty agrees that, for so long as any Transaction is outstanding under this Confirmation, it shall not, to the extent that it has not already sold the Notes to Barclays as Purchased Securities hereunder, at any time (1) hold any Notes issued under the Security Indenture or (2) transfer any Notes issued under the Security Indenture (other than pursuant to the provisions hereof and of the Master Repurchase Agreement). |
| ***No Substitution Rights*** | Counterparty may not substitute other Securities for the Purchased Securities, unless otherwise agreed to by Barclays in writing in its sole and absolute discretion. |
| ***Taxes*** | Each of the parties hereto intends and agrees to treat the Transaction, for U.S. federal income tax purposes, as a secured loan made by Buyer to Seller. |

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|:---|:---|
| **6.&nbsp;&nbsp;&nbsp;&nbsp;Payment Details, Etc.** | **6.&nbsp;&nbsp;&nbsp;&nbsp;Payment Details, Etc.** |
| ***Payments to Barclays*** | In accordance with Barclays' prior written instructions as set forth below or as otherwise delivered to Counterparty. Counterparty shall make no payments (and have no obligation to make any payment hereunder) without having received (i) such written instructions and (ii) a fully executed copy of this Confirmation or other written acceptance of the terms hereof. |
| ***Barclays Payment Details*** | In accordance with Barclays' written instructions as delivered to Counterparty. |
| ***Barclays Inquiries*** | Barclays Bank PLC<br>745 7th Ave<br>New York, NY 10019<br>Email:&nbsp;&nbsp;&nbsp;&nbsp;AmericasCreditFinancingSolutions@barclays.com<u>AmericasCreditFinancingSolutions@barclays.com</u><br>Attention:&nbsp;&nbsp;&nbsp;&nbsp;Global Credit & Financing Solutions |
| ***Barclays Notices*** | Barclays Bank PLC<br>745 7th Ave<br>New York, NY 10019<br>Email:&nbsp;&nbsp;&nbsp;&nbsp;AmericasCreditFinancingSolutions@barclays.com<u>AmericasCreditFinancingSolutions@barclays.com</u><br>Attention:&nbsp;&nbsp;&nbsp;&nbsp;Global Credit & Financing Solutions |
| ***Payments to Counterparty*** | In accordance with Counterparty's written instructions as set forth below or otherwise delivered to Barclays. Barclays shall make no payments (and have no obligation to make any payment hereunder) without having received (i) such written instructions and (ii) a fully executed facsimile copy of this Confirmation or other written acceptance of the terms hereof. |
| ***Counterparty Payment Details*** | In accordance with Counterparty's written instructions as delivered to Barclays.  |
| ***Counterparty Inquiries*** | In accordance with Counterparty's written instructions as delivered to Barclays |

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**(C)&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.**

1.&nbsp;&nbsp;&nbsp;&nbsp;***Amendments, Etc.*** Except as otherwise expressly stated herein, this Confirmation may not be amended except in writing signed by both parties.

2.&nbsp;&nbsp;&nbsp;&nbsp;***Execution***. This Confirmation may be executed in counterparts (including by facsimile or electronic transmission), each of which counterpart, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute one and the same agreement.

3.&nbsp;&nbsp;&nbsp;&nbsp;***Legal Requirements***. Buyer shall not be required to purchase the Purchased Security if any such purchase shall result in any violation of applicable rules or regulations, including, but not limited to, rules applicable to new issuances of securities.

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**(D) &nbsp;&nbsp;&nbsp;&nbsp;Additional Acknowledgements, Representations and Agreements**:

1.&nbsp;&nbsp;&nbsp;&nbsp;Counterparty hereby represents to and acknowledges and agrees with Barclays that it has consulted with its own tax advisors to the extent that it has deemed necessary, and it has made its own decisions regarding entering into the Facility based upon its own judgment and upon any advice from such advisors as it has deemed necessary and not upon any view expressed by Barclays or any of its affiliates or agents.

2.&nbsp;&nbsp;&nbsp;&nbsp;Each party acknowledges and agrees that:

(i) &nbsp;&nbsp;&nbsp;&nbsp;Unless identified as an underwriter or arranger in an offering document or as the Liquidation Agent under the Reference Instrument relating to a Purchased Security or Underlying Asset (each, an "**Instrument**"), Barclays and its affiliates have played no role in structuring or arranging any Instrument or in negotiating or establishing the terms of such Instrument. Whether or not Barclays or its affiliates are identified as an underwriter or arranger in any offering document relating to an Instrument, any and all information that may have been or is in the future provided by Barclays to Counterparty with respect to any Instrument is not being furnished by Barclays in the capacity of an underwriter or arranger in relation to the Instrument in connection with the relevant Transaction, and Barclays accepts no responsibility or liability therefor.

(ii) &nbsp;&nbsp;&nbsp;&nbsp;The contents of this Confirmation and the other agreements relating to the Facility are confidential and shall not be disclosed to any third party, and neither party shall make any public announcement relating to the Facility without consent of the other party; except that disclosure of this Confirmation and the terms of the Facility is permitted (A) where required or appropriate in response to any summons, subpoena, or otherwise in connection with any litigation or regulatory inquiry or to comply with any applicable law, order, regulation, ruling, or disclosure requirement, including without limitation, any requirement of any regulatory body or stock exchange where the shares of such disclosing party are listed, as determined by the disclosing party in good faith following consultation with the other party hereto, (B) to officers, directors, employees, attorneys, accountants and advisors of the parties or their affiliates who are subject to a duty of confidentiality to the disclosing party or such affiliate and otherwise have a need to know such information, (C) to rating agencies and (D) where the information has otherwise become public (other than as a result of a breach of this subparagraph). Notwithstanding the foregoing or any other provision in this Confirmation or any other document, Barclays and Counterparty (and each employee, representative, or other agent of Barclays or Counterparty) may each disclose to any and all persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to them relating to such U.S. tax treatment and U.S. tax structure (as those terms are used in Treasury Regulations under Sections 6011, 6111 and 6112 of the U.S. Internal Revenue Code of 1986, as amended (the "**Code**")), other than any information for which nondisclosure is reasonably necessary in order to comply with applicable securities laws.

(iii) &nbsp;&nbsp;&nbsp;&nbsp;As of the Facility Commencement Date and so long as either party has or may have any obligation under any Transaction, it is not (1) an "employee benefit plan" (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**")), subject to Title I of ERISA, a "plan" (as defined in Section 4975(e) of the Code), subject to Section 4975 of the Code or an entity whose underlying assets constitute "plan assets" of any such plan by reason of 29 CFR 2510.3-101, as modified by Section 3(42) of ERISA or (2) a governmental, church, non-U.S. or other plan that is subject to rules substantially similar to the prohibited transaction provisions of ERISA or Section 4975 of the Code.

(iv)&nbsp;&nbsp;&nbsp;&nbsp;Barclays and any of its affiliates may deal in any Instrument and may accept deposits from, make loans or otherwise extend credit to, and generally engage in any kind of commercial or investment banking or other business with any issuer of or obligor on any Instrument, any affiliate

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thereof, any other person or entity having obligations relating to any Security Issuer or any such issuer or obligor and may act with respect to such business in the same manner as if any Transaction did not exist and may originate, purchase, sell, hold or trade, and may exercise consensual or remedial rights in respect of, obligations, securities or other financial instruments of, issued by or linked to the Security Issuer or any such issuer or obligor, regardless of whether any such action might have an adverse effect on such Security Issuer, such issuer or such obligor, the value of the related Instrument or the position of the other party to such Transaction or otherwise.

(v)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise expressly provided herein, each party and its affiliates and the Calculation Agent may, whether by virtue of the types of relationships described herein or otherwise, at the date hereof or at any time hereafter, be in possession of information regarding any Security Issuer or any issuer of or obligor on any Instrument, or any affiliate thereof, that is or may be material in the context of such Transaction and that may or may not be publicly available or known to the other party. In addition, except as expressly provided herein, this Confirmation does not create any obligation on the part of such party and its affiliates to disclose to the other party any such relationship or information (whether or not confidential).

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Counterparty hereby agrees (a) to check this Confirmation (Reference No.: 3ANTYZ) carefully upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing correctly sets forth the terms of the agreement between the parties with respect to the particular Transaction to which this Confirmation relates, by manually signing this Confirmation and providing the other information requested herein and returning an executed copy to AmericasCreditFinancingSolutions@barclays.com<u>AmericasCreditFinancingSolutions@barclays.com</u>

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Very truly yours,

**BARCLAYS BANK PLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;________________________________

Name:

Title:&nbsp;&nbsp;&nbsp;&nbsp;

**AGREED AND ACCEPTED BY**:

**FSSL FINANCE BB SELLER LLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;___________________________________

Name:

Title:

[*Master Confirmation Signature Page*]

<u>BUSINESS.33062003.9</u>

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**Annex A**

**Repurchase Transactions**

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| | | | | |
|:---|:---|:---|:---|:---|
| **Transaction Number** | **Security Issuer** | **Purchased Security** | **Purchase Date** | **Initial Purchase Price** |
| 3ANTYZ | FSSL Finance BB AssetCo LLC | Eligible Security | September 6, 2023 | USD80,000,000 |

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Effective as of September 6, 2023:

**BARCLAYS BANK PLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;__________________________________

Name:

Title:&nbsp;&nbsp;&nbsp;&nbsp;

**FSSL FINANCE BB SELLER LLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;___________________________________

Name:

Title:

<br>