# EDGAR Filing Document

**Accession Number:** 0001849089
**File Stem:** 0001849089-25-000021
**Filing Date:** 2025-8
**Character Count:** 326685
**Document Hash:** 4270f6941aeb1eb69ec8fe358879e472
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001849089-25-000021.hdr.sgml**: 20250801

**ACCESSION NUMBER**: 0001849089-25-000021

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 78

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250801

**DATE AS OF CHANGE**: 20250801

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Lafayette Square USA, Inc.
- **CENTRAL INDEX KEY:** 0001849089

**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:** 814-01427
- **FILM NUMBER:** 251175466

**BUSINESS ADDRESS:**
- **STREET 1:** 175 SW 7TH STREET
- **STREET 2:** UNIT 1911
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33130
- **BUSINESS PHONE:** 7866880975

**MAIL ADDRESS:**
- **STREET 1:** 175 SW 7TH STREET
- **STREET 2:** UNIT 1911
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33130

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Lafayette Square Empire BDC, Inc.
- **DATE OF NAME CHANGE:** 20211101

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Lafayette Square Empire BDC, LLC
- **DATE OF NAME CHANGE:** 20210303

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM10-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**

For the transition period from______ to______

Commission File Number 814-01427

**LAFAYETTE SQUARE USA, INC.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **87-2807075** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

175 SW 7th St,Unit 2307

Miami, FL33130

(Address of principal executive offices)

(786) 753-7096

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which** <br>**registered**<br>|

---

Securities registered pursuant to Section 12(g) of the Securities Exchange Act of 1934:

Common Stock, par value $0.001 per share

(Title of class)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required

to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be

submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the

registrant was required to submit such files). Yes☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a

smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated

filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

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

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐

No ☒

As of August 1, 2025 the Registrant had 24,494,793shares of common stock, $0.001 par value per share, outstanding.

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  | <u>[Cautionary Statement Regarding Forward-Looking Statements](#i5dc72619deba4177a8d6fdab7d878de9_10)</u> | <u>[1](#i5dc72619deba4177a8d6fdab7d878de9_10)</u> |
| <u>[Part I. Financial Information](#i5dc72619deba4177a8d6fdab7d878de9_13)</u> | <u>[Part I. Financial Information](#i5dc72619deba4177a8d6fdab7d878de9_13)</u> |  |
| <u>[Item 1.](#i5dc72619deba4177a8d6fdab7d878de9_16)</u> | <u>[Financial Statements](#i5dc72619deba4177a8d6fdab7d878de9_16)</u> |  |
|  | <u>[Consolidated Statements of Assets and Liabilities as of](#i5dc72619deba4177a8d6fdab7d878de9_19)</u>June 30, 2025<u>[(unaudited) and](#i5dc72619deba4177a8d6fdab7d878de9_19)</u>December 31, <br>2024<br>| <u>[3](#i5dc72619deba4177a8d6fdab7d878de9_19)</u> |
|  | <u>[Consolidated Statements of Operations for the](#i5dc72619deba4177a8d6fdab7d878de9_22)</u>three and six months ended June 30, 2025<u>[and](#i5dc72619deba4177a8d6fdab7d878de9_22)</u>2024 <br><u>[(unaudited)](#i5dc72619deba4177a8d6fdab7d878de9_22)</u><br>| <u>[4](#i5dc72619deba4177a8d6fdab7d878de9_22)</u> |
|  | <u>[Consolidated Statements of Changes in Net Assets for the](#i5dc72619deba4177a8d6fdab7d878de9_25)</u>three and six months ended June 30, 2025 <br><u>[and](#i5dc72619deba4177a8d6fdab7d878de9_25)</u>2024<u>[(unaudited)](#i5dc72619deba4177a8d6fdab7d878de9_25)</u><br>| <u>[6](#i5dc72619deba4177a8d6fdab7d878de9_25)</u> |
|  | <u>[Consolidated Statements of Cash Flows for the](#i5dc72619deba4177a8d6fdab7d878de9_28)</u>three and six months ended June 30, 2025<u>[and](#i5dc72619deba4177a8d6fdab7d878de9_28)</u>2024 <br><u>[(unaudited)](#i5dc72619deba4177a8d6fdab7d878de9_28)</u><br>| <u>[8](#i5dc72619deba4177a8d6fdab7d878de9_28)</u> |
|  | <u>[Consolidated Schedule of Investments as of](#i5dc72619deba4177a8d6fdab7d878de9_31)</u>June 30, 2025<u>[(unaudited) and](#i5dc72619deba4177a8d6fdab7d878de9_31)</u>December 31, 2024 | <u>[9](#i5dc72619deba4177a8d6fdab7d878de9_31)</u> |
|  | <u>[Notes to Consolidated Financial Statements (unaudited)](#i5dc72619deba4177a8d6fdab7d878de9_43)</u> | <u>[22](#i5dc72619deba4177a8d6fdab7d878de9_43)</u> |
| <u>[Item 2.](#i5dc72619deba4177a8d6fdab7d878de9_82)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i5dc72619deba4177a8d6fdab7d878de9_82)</u> | <u>[51](#i5dc72619deba4177a8d6fdab7d878de9_82)</u> |
| <u>[Item 3.](#i5dc72619deba4177a8d6fdab7d878de9_106)</u> | <u>[Quantitative and Qualitative Disclosures about Market Risk](#i5dc72619deba4177a8d6fdab7d878de9_106)</u> | <u>[75](#i5dc72619deba4177a8d6fdab7d878de9_106)</u> |
| <u>[Item 4.](#i5dc72619deba4177a8d6fdab7d878de9_112)</u> | <u>[Controls and Procedures](#i5dc72619deba4177a8d6fdab7d878de9_112)</u> | <u>[77](#i5dc72619deba4177a8d6fdab7d878de9_112)</u> |
| <u>[Part II. Other Information](#i5dc72619deba4177a8d6fdab7d878de9_115)</u> | <u>[Part II. Other Information](#i5dc72619deba4177a8d6fdab7d878de9_115)</u> |  |
| <u>[Item 1.](#i5dc72619deba4177a8d6fdab7d878de9_118)</u> | <u>[Legal Proceedings](#i5dc72619deba4177a8d6fdab7d878de9_118)</u> | <u>[78](#i5dc72619deba4177a8d6fdab7d878de9_118)</u> |
| <u>[Item 1A.](#i5dc72619deba4177a8d6fdab7d878de9_121)</u> | <u>[Risk Factors](#i5dc72619deba4177a8d6fdab7d878de9_121)</u> | <u>[78](#i5dc72619deba4177a8d6fdab7d878de9_121)</u> |
| <u>[Item 2.](#i5dc72619deba4177a8d6fdab7d878de9_124)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i5dc72619deba4177a8d6fdab7d878de9_124)</u> | <u>[79](#i5dc72619deba4177a8d6fdab7d878de9_124)</u> |
| <u>[Item 3.](#i5dc72619deba4177a8d6fdab7d878de9_127)</u> | <u>[Defaults Upon Senior Securities](#i5dc72619deba4177a8d6fdab7d878de9_127)</u> | <u>[79](#i5dc72619deba4177a8d6fdab7d878de9_127)</u> |
| <u>[Item 4.](#i5dc72619deba4177a8d6fdab7d878de9_130)</u> | <u>[Mine Safety Disclosures](#i5dc72619deba4177a8d6fdab7d878de9_130)</u> | <u>[79](#i5dc72619deba4177a8d6fdab7d878de9_130)</u> |
| <u>[Item 5.](#i5dc72619deba4177a8d6fdab7d878de9_133)</u> | <u>[Other Information](#i5dc72619deba4177a8d6fdab7d878de9_133)</u> | <u>[79](#i5dc72619deba4177a8d6fdab7d878de9_133)</u> |
| <u>[Item 6.](#i5dc72619deba4177a8d6fdab7d878de9_136)</u> | <u>[Exhibits](#i5dc72619deba4177a8d6fdab7d878de9_136)</u> | <u>[79](#i5dc72619deba4177a8d6fdab7d878de9_136)</u> |
| <u>[SIGNATURES](#i5dc72619deba4177a8d6fdab7d878de9_139)</u> | <u>[SIGNATURES](#i5dc72619deba4177a8d6fdab7d878de9_139)</u> | <u>[80](#i5dc72619deba4177a8d6fdab7d878de9_139)</u> |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Cautionary Statement Regarding Forward-Looking Statements**

This report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve

known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-

looking statements are not historical facts, but rather are based on current expectations, estimates and projections about

Lafayette Square USA, Inc., together with its consolidated subsidiaries ("we," "us," "our," or the "Company"), our

prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Words such as

"anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could,"

"should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are

intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject

to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause

actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without

limitation:

• our business prospects and the prospects of the companies in which we may invest;

• our ability to raise sufficient capital to execute our investment strategy;

• the impact of economic recessions or downturns could harm our operating results;

• United States trade policy developments, tariffs and other trade restrictions;

• price inflation and changes in the general interest rate environment, which could adversely affect the operating

results of our portfolio companies and impact their ability to pay interest and principal on our loans;

• changes in the general interest rate environment;

• general economic and political trends and other external factors, including the impact of any future pandemic or

epidemic;

• heightened global political and economic uncertainty caused by war, social unrest and political tension;

• the demand from middle market businesses for capital investment and managerial assistance;

• our ability to create and preserve jobs and stimulate the economy;

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

• our expected financing arrangements and expected investments;

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

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

• our contractual arrangements and relationships with third parties;

• actual and potential conflicts of interest with LS BDC Adviser, LLC (the "Adviser") or any of its affiliates;

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

• our use of financial leverage;

• the ability of the Adviser to source suitable investments for us and to monitor and administer our investments;

• the ability of the Adviser or its affiliates to attract and retain highly talented professionals;

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

• the effect of changes to tax legislation and our tax position;

• the impact of information technology system failures, data security breaches, data privacy compliance, network

disruptions, and cybersecurity attacks;

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

• the ability of our subsidiaries to maintain their small business investment companies licenses from the Small

Business Administration (the "SBA"), like the license for a small business investment company ("SBIC")

currently held by Lafayette Square SBIC, LP and the license for a specialized small business investment company

("SSBIC") currently held by Lafayette Square SSBIC, LP, and the potential benefits from having such licenses;

• our ability to adhere to or meet our goals, including our 2030 Goals (as defined herein);

• our ability to deploy at least 51% of our invested capital in Working Class Areas;

• our ability to improve the retention, well-being, and productivity of employees in our portfolio companies;

• our ability to enhance the risk-adjusted financial returns of our portfolio companies;

• our ability to convince our portfolio companies to use our services platform, Worker Solutions®;

• our ability to reduce employee turnover and increase median income of employees within our portfolio

companies;

• our ability to encourage and increase participation in medical care benefits and retirement benefits by employees

within our portfolio companies;

• the likelihood that the federal government will expand its partnerships with the private sector, including through

programs aligned with our 2030 Goals; and

• our ability to qualify for and maintain our qualification as a regulated investment company (a "RIC") and as a

business development company (a "BDC").

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of

those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions

also could be inaccurate. In light of these and other uncertainties, the inclusion of any projection or forward-looking

statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved.

Moreover, we assume no duty and do not undertake to update the forward-looking statements, except as required by

applicable law. Because we are an investment company, the forward-looking statements and projections contained in this

report are excluded from the safe harbor protection provided by Section 21E of the U.S. Securities Exchange Act of 1934

Act, as amended (the "Exchange Act").

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Statements of Assets and Liabilities**

**(dollar amounts in thousands, except per share data or otherwise noted)**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
|  | (unaudited) |  |
| **Assets**  |  |  |
| Investments, at fair value:  |  |  |
| Non-controlled/non-affiliated investments at fair value (amortized cost of $701,216 and <br>$522,945 as of June 30, 2025 and December 31, 2024, respectively)<br>| $701553 | $522935 |
| Non-controlled/affiliated investments at fair value (amortized cost of $19,803 and <br>$29,349 as of June 30, 2025 and December 31, 2024, respectively)<br>| 22078 | 29583 |
| Controlled/affiliated investments at fair value (amortized cost of $8,584 and $4,569 as <br>of June 30, 2025 and December 31, 2024, respectively)<br>| 8584 | 4569 |
| Cash and cash equivalents | 119319 | 202452 |
| Deferred financing costs | 9592 | 8575 |
| Interest receivable | 3653 | 1848 |
| Other assets | 2327 | 329 |
| Due from affiliate | 438 | 260 |
| **Total assets** | $867544 | $770551 |
| **Liabilities** |  |  |
| Secured borrowings (see Note 5) | $254482 | $208232 |
| SBA-guaranteed debentures (see Note 5) | 230000 | 192505 |
| Distributions payable | 8503 | 7853 |
| Interest and financing payable | 4686 | 3044 |
| Incentive fee payable (see Note 6) | 1620 | 1578 |
| Management fee payable (see Note 6) | 1585 | 1375 |
| Deferred revenue payable | 1505 | 2517 |
| Accounts payable and accrued expenses | 760 | 649 |
| Due to affiliate | 744 | 221 |
| Income tax payable | 564 | 171 |
| **Total liabilities** | 504449 | 418145 |
| **Commitments and Contingencies (See Note 7)** |  |  |
| **Net assets** |  |  |
| Preferred stock, par value $0.001 per share (50,000,000 shares authorized, 0 shares <br>issued and outstanding as of June 30, 2025 and December 31, 2024)<br>|  |  |
| Common stock, par value $0.001 per share (450,000,000 shares authorized, 24,293,039<br>and 23,797,438 shares issued and outstanding as of June 30, 2025 and December 31, <br>2024, respectively)<br>| 24 | 24 |
| Paid-in capital in excess of par | 358514 | 351181 |
| Distributable earnings (losses) | 4557 | 1201 |
| **Total net assets** | 363095 | 352406 |
| **Total liabilities and net assets** | $867544 | $770551 |
| **Net asset value per common share** | $14.95 | $14.81 |

---

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

**Lafayette Square USA, Inc.**

**Consolidated Statements of Operations**

**(dollar amounts in thousands, except per share data or otherwise noted)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
|  | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
| **Investment Income:**  |  |  |  |  |
| Interest income from non-controlled/non-affiliated investments: | Interest income from non-controlled/non-affiliated investments: |  |  |  |
| Cash | $19775 | $10766 | $36278 | $19559 |
| Fee income | 359 | 274 | 1086 | 487 |
| Interest income from non-controlled/affiliated investments: | Interest income from non-controlled/affiliated investments: |  |  |  |
| Cash | 69 | 767 | 716 | 1590 |
| Fee income |  | 66 |  | 66 |
| Interest from cash and cash equivalents | 1034 | 817 | 2472 | 1753 |
| **Total investment income** | 21237 | 12690 | 40552 | 23455 |
| **Expenses:** |  |  |  |  |
| Interest and financing expenses (see Note 5) | $7254 | $1625 | $13269 | $2547 |
| Incentive fee (see Note 6) | 1620 | 1213 | 3134 | 2382 |
| Management fee (see Note 6) | 1585 | 872 | 3063 | 1614 |
| Administrative services fee (see Note 6) | 450 | 500 | 900 | 1006 |
| General and administrative expenses | 590 | 773 | 840 | 1103 |
| Income tax expense | 41 |  | 670 |  |
| Professional fees | 350 | 746 | 659 | 1123 |
| Directors' fees | 80 | 80 | 160 | 160 |
| Organizational costs (See Note 2) | 75 |  | 75 |  |
| **Total expenses** | 12045 | 5809 | 22770 | 9935 |
| **Net investment income (loss)** | 9192 | 6881 | 17782 | 13520 |
| **Net realized and unrealized gains (losses) on** <br>**investment transactions:**<br>|  |  |  |  |
| **Net realized gains (losses) on investments:** | **Net realized gains (losses) on investments:** |  |  |  |
| Net realized gains (losses) on investments in non-<br>controlled/non-affiliated investments<br>| 24 |  | 82 |  |
| Total net realized gains (losses) on investments | 24 |  | 82 |  |
| **Net change in unrealized gains (losses) on investments:** | **Net change in unrealized gains (losses) on investments:** |  |  |  |
| Net change in unrealized gains (losses) on <br>investments in non-controlled/non-affiliated <br>investments<br>| (552) | (390) | 347 | 740 |
| Net change in unrealized gains (losses) on <br>investments in non-controlled/affiliated <br>investments<br>| 441 | (10) | 2041 | 89 |
| Total net change in unrealized gains (losses) on <br>investments<br>| (111) | (400) | 2388 | 829 |
| **Net increase (decrease) in net assets resulting** <br>**from operations**<br>| $9105 | $6481 | $20252 | $14349 |
| Weighted average common shares outstanding | 24217260 | 22178576 | 24098036 | 21880114 |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Statements of Operations (continued)**

**(dollar amounts in thousands, except per share data or otherwise noted)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Net investment income (loss) per common share <br>(basic and diluted)<br>| $0.38 | $0.31 | $0.74 | $0.62 |
| Earnings (loss) per common share (basic and <br>diluted)<br>| $0.38 | $0.29 | $0.84 | $0.66 |

---

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

**Lafayette Square USA, Inc.**

**Consolidated Statements of Changes in Net Assets**

**(dollar amounts in thousands, except per share data or otherwise noted)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Par** <br>**Amount**<br>| <br>**Paid in** <br>**Capital** <br>**Excess of Par**<br>| <br>**Distributable** <br>**Earnings** <br>**(Losses)**<br>| <br>**Total net** <br>**assets**<br>|
| **Balance at March 31, 2024** | 21584341 | $22 | $318883 | $2933 | $321838 |
| Capital transactions: |  |  |  |  |  |
| Issuance of common stock | 733093 | 1 | 10995 |  | 10996 |
| Reinvestment of stockholder distributions | 140902 |  | 1794 |  | 1794 |
| Net increase in net assets from capital <br>transactions<br>| 873995 | 1 | 12789 |  | 12790 |
| Net increase (decrease) in net assets <br>resulting from operations:<br>|  |  |  |  |  |
| Net investment income (loss) |  |  |  | 6881 | 6881 |
| Net change in unrealized gain (losses) |  |  |  | (400) | (400) |
| Total increase (decrease) in net assets <br>resulting from operations<br>|  |  |  | 6481 | 6481 |
| Distributions to stockholders from: |  |  |  |  |  |
| Distributable earnings |  |  |  | (6738) | (6738) |
| Total distributions to stockholders |  |  |  | (6738) | (6738) |
| **Total increase (decrease) for the three** <br>**months ended June 30, 2024**<br>| 873995 | 1 | 12789 | (257) | 12533 |
| **Balance, June 30, 2024** | 22458336 | $23 | $331672 | $2676 | $334371 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Par** <br>**Amount**<br>| <br>**Paid in** <br>**Capital** <br>**Excess of Par**<br>| <br>**Distributable** <br>**Earnings** <br>**(Losses)**<br>| <br>**Total net** <br>**assets**<br>|
| **Balance at March 31, 2025** | 24096013 | $24 | $355594 | $3955 | $359573 |
| Capital transactions: |  |  |  |  |  |
| Issuance of common stock |  |  |  |  |  |
| Reinvestment of stockholder distributions | 197026 |  | 2920 |  | 2920 |
| Net increase in net assets from capital <br>transactions<br>| 197026 |  | 2920 |  | 2920 |
| Net increase (decrease) in net assets <br>resulting from operations:<br>|  |  |  |  |  |
| Net investment income (loss) |  |  |  | 9192 | 9192 |
| Net realized gain (loss) |  |  |  | 24 | 24 |
| Net change in unrealized gain (losses) |  |  |  | (111) | (111) |
| Total increase (decrease) in net assets <br>resulting from operations<br>|  |  |  | 9105 | 9105 |
| Distributions to stockholders from: |  |  |  |  |  |
| Distributable earnings |  |  |  | (8503) | (8503) |
| Total distributions to stockholders |  |  |  | (8503) | (8503) |
| **Total increase (decrease) for the three** <br>**months ended June 30, 2025**<br>| 197026 |  | 2920 | 602 | 3522 |
| **Balance, June 30, 2025** | 24293039 | $24 | $358514 | $4557 | $363095 |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Statements of Changes in Net Assets (continued)**

**(dollar amounts in thousands, except per share data or otherwise noted)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Par** <br>**Amount\***<br>| <br>**Paid in** <br>**Capital** <br>**Excess of Par**<br>| <br>**Distributable** <br>**Earnings** <br>**(Losses)**<br>| <br>**Total net** <br>**assets**<br>|
| **Balance, December 31, 2023** | 21502768 | $22 | $317677 | $1540 | $319239 |
| Capital transactions: |  |  |  |  |  |
| Issuance of common stock | 733093 | 1 | 10995 |  | 10996 |
| Reinvestment of stockholder distributions | 222475 |  | 3000 |  | 3000 |
| Net increase in net assets from capital transactions | 955568 | 1 | 13995 |  | 13996 |
| Net increase (decrease) in net assets resulting from <br>operations:<br>|  |  |  |  |  |
| Net investment income (loss) |  |  |  | 13520 | 13520 |
| Net change in unrealized gain (losses) |  |  |  | 829 | 829 |
| Total increase (decrease) in net assets resulting from <br>operations<br>|  |  |  | 14349 | 14349 |
| Distributions to stockholders from: |  |  |  |  |  |
| Distributable earnings |  |  |  | (13213) | (13213) |
| Total distributions to stockholders |  |  |  | (13213) | (13213) |
| **Total increase (decrease) for the six months ended** <br>**June 30, 2024**<br>| 955568 | 1 | 13995 | 1136 | 15132 |
| **Balance, June 30, 2024** | 22458336 | $23 | $331672 | $2676 | $334371 |
|  | **Common Stock** | **Common Stock** |  |  |  |
|  | **Shares** | **Par** <br>**Amount**<br>| **Paid in** <br>**Capital** <br>**Excess of Par**<br>| **Distributable** <br>**Earnings** <br>**(Losses)**<br>| **Total net** <br>**assets**<br>|
| **Balance at December 31, 2024** | 23797438 | $24 | $351181 | $1201 | $352406 |
| Capital transactions: |  |  |  |  |  |
| Issuance of common stock | 116132 |  | 1721 |  | 1721 |
| Reinvestment of stockholder distributions | 379469 |  | 5612 |  | 5612 |
| Net increase in net assets from capital transactions | 495601 |  | 7333 |  | 7333 |
| Net increase (decrease) in net assets resulting from <br>operations:<br>|  |  |  |  |  |
| Net investment income (loss) |  |  |  | 17782 | 17782 |
| Net realized gain (loss) |  |  |  | 82 | 82 |
| Net change in unrealized gain (losses) |  |  |  | 2388 | 2388 |
| Total increase (decrease) in net assets resulting from <br>operations<br>|  |  |  | 20252 | 20252 |
| Distributions to stockholders from: |  |  |  |  |  |
| Distributable earnings |  |  |  | (16896) | (16896) |
| Total distributions to stockholders |  |  |  | (16896) | (16896) |
| **Total increase (decrease) for the six months ended** <br>**June 30, 2025**<br>| 495601 |  | 7333 | 3356 | 10689 |
| **Balance, June 30, 2025** | 24293039 | $24 | $358514 | $4557 | $363095 |

---

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

**Lafayette Square USA, Inc.**

**Consolidated Statements of Cash Flows**

**(dollar amounts in thousands, except per share data or otherwise noted)** 

---

| | | |
|:---|:---|:---|
|  | **For the six months** <br>**ended** <br>**June 30, 2025**<br>| **For the six months** <br>**ended** <br>**June 30, 2024**<br>|
|  | (unaudited) | (unaudited) |
| **Cash flows from operating activities**  |  |  |
| Net increase (decrease) in net assets resulting from operations | $20252 | $14349 |
| Adjustments to reconcile net increase (decrease) in net assets resulting from <br>operations to net cash provided by (used in) operating activities:<br>|  |  |
| Net realized (gain) loss on investments | (82) |  |
| Net change in unrealized (gain) loss on investments | (2388) | (829) |
| Purchases of investments | (285770) | (156252) |
| Net accretion of discount on investments | (1132) | (679) |
| Proceeds from sales and repayments of investments | 114244 | 8988 |
| Amortization of deferred financing costs | 772 | 331 |
| Changes in operating assets and liabilities: |  |  |
| Interest receivable | (1805) | (863) |
| Due from affiliate | (178) |  |
| Other assets | (1998) | (830) |
| Deferred revenue payable | (1012) | 5411 |
| Accounts payable and accrued expenses | 111 | (382) |
| Management fee payable | 210 | 267 |
| Incentive fee payable | 42 | 647 |
| Administrative services fee payable |  | (885) |
| Interest and financing payable | 1642 | 592 |
| Income tax payable | 393 |  |
| Due to affiliate | 523 | (94) |
| **Net cash provided by (used in) operating activities** | (156176) | (130229) |
| **Cash flows from financing activities** |  |  |
| Proceeds from issuance of shares of common stock | 1721 | 10996 |
| Distributions paid | (10634) | (7412) |
| Proceeds from secured borrowings | 118750 | 113400 |
| Repayments of secured borrowings | (72500) | (65900) |
| Proceeds from reverse repurchase agreement |  | 20355 |
| Proceeds from SBA-guaranteed debentures | 37495 | 51500 |
| Deferred financing costs paid | (1789) | (3129) |
| **Net cash provided by (used in) financing activities** | 73043 | 119810 |
| **Net increase (decrease) in cash and cash equivalents** | (83133) | (10419) |
| **Cash and cash equivalents at beginning of period** | 202452 | 109771 |
| **Cash and cash equivalents at end of period** | $119319 | $99352 |
| **Supplemental information:** |  |  |
| Cash paid for interest | $10790 | $1641 |
| Shares issued from dividend reinvestment plan | $5612 | $3000 |
| Accrual for deferred financing costs | $9592 | $3892 |

---

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

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments**

**June 30, 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Non-controlled/non-affiliated investments**  | **Non-controlled/non-affiliated investments**  | **Non-controlled/non-affiliated investments**  |  |  |  |  |  |  |  |  |  |
| **Aerospace & Defense** | **Aerospace & Defense** | **Aerospace & Defense** |  |  |  |  |  |  |  |  |  |
| C Speed LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 6.00% | —% | 10/1/2024 | 10/1/2029 | $— | $(42) | $— | —% |
| C Speed LLC | (6)(7)(12) | First lien senior secured loan | S+ | 6.00% | 10.30% | 10/1/2024 | 10/1/2029 | 15185 | 15062 | 15185 | 4.2% |
|  |  |  |  |  |  |  |  |  | 15020 | 15185 | 4.2% |
| **Application Software** | **Application Software** | **Application Software** |  |  |  |  |  |  |  |  |  |
| CentralBDC Enterprises, LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 5.25% | 9.55% | 6/25/2024 | 6/11/2029 | 1811 | 1798 | 1811 | 0.5% |
| CentralBDC Enterprises, LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.25% | 9.55% | 6/25/2024 | 6/11/2029 | 16674 | 16588 | 16674 | 4.6% |
|  |  |  |  |  |  |  |  |  | 18386 | 18485 | 5.1% |
| **Business Support Services** | **Business Support Services** | **Business Support Services** |  |  |  |  |  |  |  |  |  |
| Flatworld Intermediate Corporation | (6)(7)(8) | First lien senior secured loan | S+ | 5.50% | —% | 3/25/2025 | 3/25/2030 |  | (71) |  | —% |
| Flatworld Intermediate Corporation | (6)(7) | First lien senior secured loan | S+ | 5.50% | 9.80% | 3/25/2025 | 3/25/2030 | 29925 | 29607 | 29925 | 8.1% |
|  |  |  |  |  |  |  |  |  | 29536 | 29925 | 8.1% |
| **Commercial Services & Supplies** | **Commercial Services & Supplies** | **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |
| Rotolo Consultants, Inc. | (6)(7) | First lien senior secured loan | S+ | 5.50% | 9.80% | 1/31/2025 | 1/31/2031 | 5272 | 5253 | 5272 | 1.5% |
| Rotolo Consultants, Inc. | (6)(7)(8) | First lien senior secured loan | S+ | 5.50% | 9.80% | 1/31/2025 | 1/31/2031 | 5783 | 5728 | 5783 | 1.6% |
| Rotolo Consultants, Inc. | (6)(7) | First lien senior secured loan | S+ | 5.50% | 9.80% | 1/31/2025 | 1/31/2031 | 20181 | 20159 | 20181 | 5.6% |
| TEC Services LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.50% | 9.90% | 1/09/2025 | 12/31/2029 | 9950 | 9950 | 9950 | 2.7% |
| Zero Waste Recycling LLC | (6)(7) | First lien senior secured loan | S+ | 6.45% | 11.04% | 6/29/2022 | 5/15/2026 | 4952 | 5051 | 4952 | 1.4% |
| Zero Waste Recycling LLC | (6)(7) | First lien senior secured loan | S+ | 6.45% | 11.04% | 6/29/2022 | 5/15/2026 | 13125 | 13085 | 13125 | 3.6% |
| ZWR Holdings, Inc. |  | Subordinated debt | 14.00% (Inc. <br>10.00% PIK) | 14.00% (Inc. <br>10.00% PIK) | 14.00% | 8/16/2021 | 2/16/2027 | 1808 | 1808 | 1808 | 0.5% |
| ZWR Holdings, Inc. |  | Warrants |  |  |  | 8/16/2021 |  | 24953 |  |  | —% |
|  |  |  |  |  |  |  |  |  | 61034 | 61071 | 16.9% |
| **Construction & Engineering** | **Construction & Engineering** | **Construction & Engineering** |  |  |  |  |  |  |  |  |  |
| Synergi, LLC | (6)(7) | First lien senior secured loan | S+ | 7.45% | 12.01% | 12/19/2022 | 12/17/2027 | 16324 | 16244 | 16324 | 4.5% |
| Synergi, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 7.45% | 12.01% | 12/19/2022 | 12/17/2027 | 1125 | 1106 | 1125 | 0.3% |
|  |  |  |  |  |  |  |  |  | 17350 | 17449 | 4.8% |
| **Diversified Financial Services** | **Diversified Financial Services** | **Diversified Financial Services** |  |  |  |  |  |  |  |  |  |
| Core Capital Partners II-S LP | (6)(7)(8) | First lien senior secured loan | S+ | 7.50% | 11.80% | 10/11/2024 | 10/11/2027 | 2500 | 2409 | 2500 | 0.7% |
| Core Capital Partners II-S LP | (6)(7) | First lien senior secured loan | S+ | 7.50% | 11.80% | 10/11/2024 | 10/11/2027 | 28000 | 27787 | 28000 | 7.6% |
|  |  |  |  |  |  |  |  |  | 30196 | 30500 | 8.3% |
| **Diversified Telecommunication Services** | **Diversified Telecommunication Services** | **Diversified Telecommunication Services** |  |  |  |  |  |  |  |  |  |
| Johnsoncomm LLC | (6)(7)(15) | First lien senior secured loan | S+ | 6.90% | 11.20% | 1/31/2025 | 1/31/2030 | 18000 | 17846 | 17846 | 4.9% |
|  |  |  |  |  |  |  |  |  | 17846 | 17846 | 4.9% |
| **Electrical Equipment** | **Electrical Equipment** | **Electrical Equipment** |  |  |  |  |  |  |  |  |  |
| Electro Technical Industries, LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 6.00% | —% | 3/31/2025 | 3/31/2030 |  | (16) |  | —% |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**June 30, 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| Electro Technical Industries, LLC | (6)(7)(12) | First lien senior secured loan | S+ | 6.00% | 10.33% | 3/31/2025 | 3/31/2030 | 12698 | 12607 | 12607 | 3.5% |
|  |  |  |  |  |  |  |  |  | 12591 | 12607 | 3.5% |
| **Food Products** | **Food Products** | **Food Products** |  |  |  |  |  |  |  |  |  |
| Capital City LLC | (6)(7)(8)(15) | First lien senior secured loan | S+ | 8.00% | 12.30% | 9/20/2024 | 9/20/2029 | 643 | 623 | 637 | 0.2% |
| Capital City LLC | (6)(7)(15) | First lien senior secured loan | S+ | 8.00% | 12.30% | 9/20/2024 | 9/20/2029 | 496 | 492 | 492 | 0.1% |
|  |  |  |  |  |  |  |  |  | 1115 | 1129 | 0.3% |
| **Food Service Distributor** | **Food Service Distributor** | **Food Service Distributor** |  |  |  |  |  |  |  |  |  |
| Genuine Food Lab LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 8.25% | —% | 6/06/2025 | 6/06/2030 |  | (25) |  | —% |
| Genuine Food Lab LLC | (6)(7)(12) | First lien senior secured loan | S+ | 8.25% | 12.55% | 6/06/2025 | 6/06/2030 | 10000 | 9902 | 9902 | 2.7% |
|  |  |  |  |  |  |  |  |  | 9877 | 9902 | 2.7% |
| **Gas Utilities** | **Gas Utilities** | **Gas Utilities** |  |  |  |  |  |  |  |  |  |
| TCFIII Owl Buyer LLC | (6)(7) | First lien senior secured loan | S+ | 5.50% | 9.94% | 1/31/2023 | 4/17/2026 | 10730 | 10702 | 10730 | 3.0% |
|  |  |  |  |  |  |  |  |  | 10702 | 10730 | 3.0 |
| **Health Care Equipment & Services** | **Health Care Equipment & Services** | **Health Care Equipment & Services** |  |  |  |  |  |  |  |  |  |
| MSPB MSO, LLC | (6)(7) | First lien senior secured loan | S+ | 6.50% | 10.80% | 11/10/2023 | 11/10/2028 | 9863 | 9838 | 9839 | 2.7% |
| MSPB MSO, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 6.50% | 10.80% | 11/10/2023 | 11/10/2028 | 1695 | 1638 | 1691 | 0.5% |
| MSPB MSO, LLC | (6)(7) | First lien senior secured loan | S+ | 6.50% | 10.80% | 11/10/2023 | 11/10/2028 | 8391 | 8328 | 8371 | 2.3% |
|  |  |  |  |  |  |  |  |  | 19804 | 19901 | 5.5% |
| **Health Care Providers & Services** | **Health Care Providers & Services** | **Health Care Providers & Services** |  |  |  |  |  |  |  |  |  |
| Salt Dental Collective LLC | (6)(7) | First lien senior secured loan | S+ | 6.75% | 11.18% | 3/20/2023 | 2/15/2028 | 17677 | 17539 | 17677 | 4.9% |
|  |  |  |  |  |  |  |  |  | 17539 | 17677 | 4.9% |
| **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** |  |  |  |  |  |  |  |  |  |
| Aetius Holdings, LLC | (6)(7) | First lien senior secured loan | S+ | 7.00% | 11.55% | 1/25/2023 | 7/31/2025 | 979 | 979 | 979 | 0.3% |
| LC Hospitality, LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.45% | 9.75% | 7/25/2024 | 7/25/2031 | 10060 | 9985 | 10060 | 2.8% |
| Liberty Lenwich Holdings LLC | (6)(7)(8)(15) | First lien senior secured loan | S+ | 5.75% | —% | 2/28/2025 | 2/28/2030 |  | (14) |  | —% |
| Liberty Lenwich Holdings LLC | (6)(7)(15) | First lien senior secured loan | S+ | 5.75% | 10.03% | 2/28/2025 | 2/28/2030 | 14514 | 14376 | 14514 | 4.0% |
| Liberty Lenwich Holdings LLC | (6)(7)(8)(15) | First lien senior secured loan | S+ | 5.75% | —% | 2/28/2025 | 2/28/2030 |  | (28) |  | —% |
|  |  |  |  |  |  |  |  |  | 25298 | 25553 | 7.1% |
| **Independent Power & Renewable** | **Independent Power & Renewable** | **Independent Power & Renewable** |  |  |  |  |  |  |  |  |  |
| National Carbon<br>Technologies – California, LLC | (8) | First lien senior secured loan |  | 12.25% | 12.25% | 5/31/2024 | 5/31/2029 | 14000 | 13999 | 14000 | 3.9% |
|  |  |  |  |  |  |  |  |  | 13999 | 14000 | 3.9% |
| **Electric Utilities** | **Electric Utilities** | **Electric Utilities** |  |  |  |  |  |  |  |  |  |
| truCurrent LLC | (6)(7)(8) | First lien senior secured loan | S+ | 7.20% | 11.50% | 2/12/2024 | 2/12/2029 | 10000 | 9912 | 10000 | 2.8% |
| truCurrent LLC | (6)(7) | First lien senior secured loan | S+ | 7.20% | 11.50% | 2/12/2024 | 2/12/2029 | 12500 | 12408 | 12500 | 3.4% |
|  |  |  |  |  |  |  |  |  | 22320 | 22500 | 6.2% |
| **Insurance** | **Insurance** | **Insurance** |  |  |  |  |  |  |  |  |  |
| Arrowhead Capital Group LLC |  | Equity |  |  |  | 2/28/2025 |  | 15000000 | 15000 | 15000 | 4.1% |
|  |  |  |  |  |  |  |  |  | 15000 | 15000 | 4.1% |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**June 30, 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **IT Services** | **IT Services** | **IT Services** |  |  |  |  |  |  |  |  |  |
| DRS Imaging Services LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 6.75% | —% | 3/28/2025 | 3/28/2030 |  | (30) |  | —% |
| DRS Imaging Services LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 6.75% | —% | 3/28/2025 | 3/28/2030 |  | (66) |  | —% |
| DRS Imaging Services LLC | (6)(7)(12) | First lien senior secured loan | S+ | 6.75% | 11.05% | 3/28/2025 | 3/28/2030 | 4637 | 4559 | 4559 | 1.3% |
| Xpect Solutions, LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 5.75% | 10.05% | 10/7/2024 | 10/7/2029 | 7463 | 7425 | 7463 | 2.1% |
| Xpect Solutions, LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 5.75% | —% | 10/7/2024 | 10/7/2029 |  | (17) |  | —% |
| Xpect Solutions, LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.75% | 10.05% | 10/7/2024 | 10/7/2029 | 22331 | 22143 | 22331 | 6.2% |
|  |  |  |  |  |  |  |  |  | 34014 | 34353 | 9.6% |
| **Interactive Media & Services** | **Interactive Media & Services** | **Interactive Media & Services** |  |  |  |  |  |  |  |  |  |
| Dance Nation Holdings LLC | (6)(7) | First lien senior secured loan | S+ | 6.95% | 11.51% | 8/24/2023 | 8/24/2028 | 31741 | 31542 | 31741 | 8.6% |
| Dance Nation Holdings LLC | (6)(7)(8) | First lien senior secured loan | S+ | 6.95% | —% | 8/24/2023 | 8/24/2028 |  | (28) |  | —% |
| Dance Nation Topco LLC |  | Preferred Equity |  |  |  | 8/24/2023 |  | 1652200 | 1652 | 2018 | 0.6% |
|  |  |  |  |  |  |  |  |  | 33166 | 33759 | 9.2% |
| **Media** | **Media** | **Media** |  |  |  |  |  |  |  |  |  |
| Direct Digital Holdings, LLC | (6)(7) | First lien senior secured loan | S+ | 8.50% | 12.98% | 6/29/2022 | 12/3/2026 | 7596 | 7582 | 7141 | 2.0% |
| Direct Digital Holdings, LLC | (6)(7) | First lien senior secured loan | S+ | 8.50% | 12.98% | 6/29/2022 | 12/3/2026 | 20766 | 20582 | 19520 | 5.4% |
| Direct Digital Holdings, LLC | (6)(7) | First lien senior secured loan | S+ | 8.50% | 12.98% | 6/29/2022 | 12/3/2026 | 6000 | 6000 | 5640 | 1.6% |
|  |  |  |  |  |  |  |  |  | 34164 | 32301 | 9.0% |
| **Pharmaceuticals** | **Pharmaceuticals** | **Pharmaceuticals** |  |  |  |  |  |  |  |  |  |
| Med Learning Group, LLC | (6)(7) | First lien senior secured loan | S+ | 6.25% | 10.55% | 3/26/2024 | 12/30/2027 | 15491 | 15383 | 15492 | 4.3% |
| Med Learning Group, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 6.25% | 10.55% | 3/26/2024 | 12/30/2027 | 852 | 838 | 852 | 0.2% |
|  |  |  |  |  |  |  |  |  | 16221 | 16344 | 4.5% |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |  |
| M&S Acquisition Corporation | (6)(7)(12) | First lien senior secured loan | S+ | 6.50% | 11.06% | 12/19/2023 | 12/19/2028 | 42003 | 41712 | 42003 | 11.5% |
| M&S Acquisition Corporation | (6)(7)(12) | First lien senior secured loan | S+ | 6.50% | 11.06% | 3/6/2025 | 12/19/2028 | 1413 | 1400 | 1413 | 0.4% |
| Oakwell Holding LLC | (15) | Convertible Note |  | 10.00% | 10.00% | 12/23/2024 | 12/31/2028 | 1500 | 1500 | 1500 | 0.4% |
| ZRG Partners LLC | (6)(7)(8) | First lien senior secured loan | S+ | 6.00% | 10.24% | 10/21/2024 | 6/14/2029 | 3527 | 3500 | 3527 | 1.0% |
| ZRG Partners LLC | (6)(7)(8) | First lien senior secured loan | P+ | 5.00% | 12.50% | 10/21/2024 | 6/14/2029 | 1263 | 1246 | 1263 | 0.3% |
| ZRG Partners LLC | (6)(7) | First lien senior secured loan | S+ | 6.00% | 10.31% | 10/21/2024 | 6/14/2029 | 11337 | 11267 | 11337 | 3.1% |
|  |  |  |  |  |  |  |  |  | 60625 | 61043 | 16.7% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |  |
| Standard Real Estate Investments LP | (6)(7) | First lien senior secured loan | S+ | 8.70% | 13.26% | 10/6/2023 | 10/6/2026 | 2000 | 1991 | 1988 | 0.5% |
| Standard Real Estate Investments LP | (6)(7) | First lien senior secured loan | S+ | 8.70% | 13.26% | 10/6/2023 | 10/6/2026 | 3000 | 2985 | 2982 | 0.8% |
|  |  |  |  |  |  |  |  |  | 4976 | 4970 | 1.3% |
| **Road & Rail** | **Road & Rail** | **Road & Rail** |  |  |  |  |  |  |  |  |  |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(12) | First lien senior secured loan | S+ | 6.75% | 11.05% | 5/31/2024 | 5/30/2029 | 42200 | 41870 | 40090 | 11.0% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (12) | Warrants |  |  |  | 5/31/2024 |  | 166108 |  |  | —% |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**June 30, 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
|  |  |  |  |  |  |  |  |  | 41870 | 40090 | 11.0% |
| **Specialized Consumer Services** | **Specialized Consumer Services** | **Specialized Consumer Services** |  |  |  |  |  |  |  |  |  |
| Best Friends Pet Care Holdings Inc. | (6)(7)(12) | First lien senior secured loan | S+ | 6.95% | 11.51% | 12/21/2023 | 6/21/2028 | 24509 | 24317 | 24509 | 6.8% |
| Best Friends Pet Care Holdings Inc. | (6)(7)(12) | First lien senior secured loan | S+ | 6.95% | 11.51% | 12/21/2023 | 6/21/2028 | 15577 | 15449 | 15577 | 4.3% |
| Soapy Joe's Midco OC Holdings LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 6.60% | —% | 4/22/2025 | 4/22/2030 |  |  |  | —% |
| Soapy Joe's Midco OC Holdings LLC | (6)(7)(12) | First lien senior secured loan | S+ | 6.60% | 10.93% | 4/22/2025 | 4/22/2030 | 15053 | 14979 | 14979 | 4.1% |
|  |  |  |  |  |  |  |  |  | 54745 | 55065 | 15.2% |
| **Trading Companies & Distributors** | **Trading Companies & Distributors** | **Trading Companies & Distributors** |  |  |  |  |  |  |  |  |  |
| Ickler Electric Corporation | (6)(7)(12) | First lien senior secured loan | S+ | 6.50% | 10.80% | 4/17/2025 | 4/17/2030 | 23500 | 23274 | 23274 | 6.4% |
| Ickler Electric Corporation | (12) | Subordinated debt |  | 12.00% | 12.00% | 4/17/2025 | 10/17/2030 | 1500 | 1485 | 1485 | 0.4% |
| Ickler Electric Corporation | (12) | Warrants |  |  |  | 4/17/2025 |  | 37608 |  |  | —% |
|  |  |  |  |  |  |  |  |  | 24759 | 24759 | 6.8% |
| **Transportation Infrastructure** | **Transportation Infrastructure** | **Transportation Infrastructure** |  |  |  |  |  |  |  |  |  |
| H.W. Lochner, Inc. | (6)(7) | First lien senior secured loan | S+ | 6.25% | 10.68% | 3/29/2023 | 7/2/2027 | 3963 | 3891 | 3963 | 1.1% |
| H.W. Lochner, Inc. | (6)(7) | First lien senior secured loan | S+ | 6.25% | 10.68% | 1/31/2025 | 7/2/2027 | 3659 | 3659 | 3659 | 1.0% |
| Trilon Group, LLC | (6)(7) | First lien senior secured loan | S+ | 4.75% | 9.01% | 3/24/2023 | 5/25/2029 | 4719 | 4717 | 4719 | 1.3% |
| Trilon Group, LLC | (6)(7) | First lien senior secured loan | S+ | 4.75% | 9.06% | 3/24/2023 | 5/25/2029 | 1012 | 1012 | 1012 | 0.3% |
| Trilon Group, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 4.75% | 9.05% | 3/24/2023 | 5/25/2029 | 409 | 402 | 409 | 0.1% |
| Tyler Distribution Centers LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 5.03% | 9.33% | 3/12/2025 | 3/12/2030 | 700 | 643 | 693 | 0.2% |
| Tyler Distribution Centers LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.03% | 9.33% | 3/12/2025 | 3/12/2030 | 32000 | 31691 | 31690 | 8.7% |
|  |  |  |  |  |  |  |  |  | 46015 | 46145 | 12.7% |
| **Water Utilities** | **Water Utilities** | **Water Utilities** |  |  |  |  |  |  |  |  |  |
| Ironhorse Purchaser, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 5.25% | —% | 12/21/2023 | 9/30/2027 |  | (77) |  | —% |
| Ironhorse Purchaser, LLC | (6)(7) | First lien senior secured loan | S+ | 5.25% | 9.58% | 12/21/2023 | 9/30/2027 | 9846 | 9726 | 9846 | 2.7% |
| Puris LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.75% | 10.07% | 2/20/2025 | 6/28/2029 | 597 | 597 | 597 | 0.2% |
| Puris LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.75% | 10.05% | 6/28/2024 | 6/28/2029 | 2821 | 2802 | 2821 | 0.8% |
|  |  |  |  |  |  |  |  |  | 13048 | 13264 | 3.7% |
| **Total non-controlled/non-affiliated investments**  | **Total non-controlled/non-affiliated investments**  | **Total non-controlled/non-affiliated investments**  |  |  |  |  |  |  | 701216 | 701553 | 193.2% |
| **Non-controlled/affiliated investments (10)** | **Non-controlled/affiliated investments (10)** | **Non-controlled/affiliated investments (10)** |  |  |  |  |  |  |  |  |  |
| **Commercial Services & Supplies** | **Commercial Services & Supplies** | **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |
| IVM GK9 Holdings LLC |  | Equity |  |  |  | 10/07/2022 |  | 14969 | 4881 | 6856 | 1.9% |
|  |  |  |  |  |  |  |  |  | 4881 | 6856 | 1.9% |
| **Diversified Consumer Services** | **Diversified Consumer Services** | **Diversified Consumer Services** |  |  |  |  |  |  |  |  |  |
| 3360 Frankford LLC | (17) | Equity |  |  |  | 9/23/2024 |  | 2458671 | 2459 | 2459 | 0.7% |
|  |  |  |  |  |  |  |  |  | 2459 | 2459 | 0.7% |
| **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** |  |  |  |  |  |  |  |  |  |
| Liberty Top Holdings, LLC | (15)(18) | Equity |  |  |  | 2/28/2025 |  | 3000000 | 3000 | 3300 | 0.9% |
|  |  |  |  |  |  |  |  |  | 3000 | 3300 | 0.9% |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**June 30, 2025**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |
| NW1LS CO-INVEST LP | (8) | Equity |  |  | 4/10/2025 |  | 100 | 9463 | 9463 | 2.6% |
|  |  |  |  |  |  |  |  | 9463 | 9463 | 2.6% |
| **Total non-controlled/affiliated investments** | **Total non-controlled/affiliated investments** | **Total non-controlled/affiliated investments** |  |  |  |  |  | 19803 | 22078 | 6.1% |
| **Controlled/affiliated investments (10)** | **Controlled/affiliated investments (10)** | **Controlled/affiliated investments (10)** |  |  |  |  |  |  |  |  |
| **Insurance** | **Insurance** | **Insurance** |  |  |  |  |  |  |  |  |
| GELDO Inc. | (15)(19) | Equity |  |  | 6/17/2025 |  | 3857032 | 3000 | 3000 | 0.8% |
|  |  |  |  |  |  |  |  | 3000 | 3000 | 0.8% |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |
| Worker Solutions LLC | (16) | Equity |  |  | 12/30/2024 |  | 100 | 1350 | 1350 | 0.4% |
|  |  |  |  |  |  |  |  | 1350 | 1350 | 0.4% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |
| Neighborhood Grocery Catalyst Fund LLC | (2)(8)(14) | Equity |  |  | 3/28/2024 |  | 4234000 | 4234 | 4234 | 1.2% |
|  |  |  |  |  |  |  |  | 4234 | 4234 | 1.2% |
| **Total controlled/affiliated investments** | **Total controlled/affiliated investments** | **Total controlled/affiliated investments** |  |  |  |  |  | 8584 | 8584 | 2.4% |
| **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** |  |  |  |  |  | $729603 | $732215 | 201.7% |

---

(1) Unless otherwise indicated, all investments are considered Level 3 investments. The fair value of the investment was determined using significant unobservable inputs. See Note 4 "Fair Value Measurement ofInvestments."

(2) Represents an investment that is not a "qualifying asset" under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act"). As of June 30, 2025, non-qualifying assets represent 0.5% ofthe Company's total assets. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.

(3) All investments are denominated in U.S. dollars unless otherwise noted.

(4) The total funded par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments.

(5) Percentage is based on net assets of $363,095 as of June 30, 2025.

(6) Loan includes interest rate floor feature, which generally ranges from 1.00% to 4.00%.

(7) Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to the Secured Overnight Financing Rate ("SOFR" or "S") or an alternate base rate (commonly based on theFederal Funds Rate or the U.S. Prime Rate), which generally resets quarterly. For each such loan, the Company has indicated the reference rate used and provided the spread and the interest rate in effect as ofJune 30, 2025. As of June 30, 2025, the reference rates for our variable rate loans were the 180-day SOFR at 4.15%, 90-day SOFR at 4.29%, and 30-day SOFR at 4.32%.

(8) Position or portion thereof is an unfunded loan or equity commitment, and no interest is being earned on the unfunded portion, although the investment may earn unused commitment fees. Negative cost and fairvalue, if any, results from unamortized fees, which are capitalized to the cost of the investment. The unfunded commitment may be subject to a commitment termination date that may expire prior to the maturitydate stated. See below for more information on the Company's unfunded commitments as of June 30, 2025:

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**June 30, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investments** | **Unused Fee Rate** | **Commitment Type** | **Commitment Expiration Date** | **Unfunded Commitment** | **Fair Value** |
| **First Lien Debt** |  |  |  |  |  |
| C Speed LLC | 0.50% | Revolver | 10/01/2029 | 5000 |  |
| Capital City LLC | —% | Delayed Draw Term Loan | 9/20/2029 | 2500 | (5) |
| CentralBDC Enterprises, LLC | 0.50% | Revolver | 6/11/2029 | 1347 |  |
| Core Capital Partners II-S LP | —% | Revolver | 10/11/2027 | 9500 |  |
| Dance Nation Holdings LLC | 0.50% | Revolver | 8/24/2028 | 4131 |  |
| DRS Imaging Services LLC | 0.50% | Delayed Draw Term Loan | 3/28/2030 | 4252 |  |
| DRS Imaging Services LLC | 0.50% | Revolver | 3/28/2030 | 4000 |  |
| Electro Technical Industries, LLC | 0.50% | Revolver | 3/31/2030 | 2222 |  |
| Flatworld Intermediate Corporation | 0.50% | Revolver | 3/25/2030 | 7500 |  |
| Genuine Food Lab LLC | 0.75% | Delayed Draw Term Loan | 6/06/2030 | 5000 |  |
| Ironhorse Purchaser, LLC | 1.00% | Delayed Draw Term Loan | 9/30/2027 | 6377 |  |
| Liberty Lenwich Holdings LLC | 0.50% | Revolver | 2/28/2030 | 3000 |  |
| Liberty Lenwich Holdings LLC | 0.50% | Delayed Draw Term Loan | 2/28/2030 | 3000 |  |
| Ickler Electric Corporation | —% | Term Loan | 4/17/2030 | 15000 |  |
| Med Learning Group LLC | 1.00% | Delayed Draw Term Loan | 12/30/2027 | 3425 |  |
| MSPB MSO, LLC | 0.38% | Revolver | 11/10/2028 | 6781 | (3) |
| Rotolo Consultants, Inc. | 0.50% | Revolver | 1/31/2031 | 10217 |  |
| Soapy Joe's Midco OC Holdings LLC | 0.45% | Delayed Draw Term Loan | 4/22/2030 | 5000 |  |
| Synergi, LLC | 0.50% | Revolver | 12/17/2027 | 2625 |  |
| TEC Services LLC | 1.00% | Delayed Draw Term Loan | 12/31/2029 | 3000 |  |
| TEC Services LLC | 0.50% | Revolver | 12/31/2029 | 2000 |  |
| Trilon Group, LLC | 0.50% | Revolver | 5/25/2029 | 506 |  |
| truCurrent LLC | 0.50% | Delayed Draw Term Loan | 2/12/2029 | 15000 |  |
| Tyler Distribution Centers LLC | 0.50% | Revolver | 3/12/2030 | 5300 | (6) |
| Xpect Solutions, LLC | 0.50% | Revolver | 10/07/2029 | 2500 |  |
| Xpect Solutions, LLC | 0.50% | Delayed Draw Term Loan | 10/07/2029 | 2000 |  |
| ZRG Partners LLC | 1.00% | Delayed Draw Term Loan | 6/14/2029 | 2492 |  |
| ZRG Partners LLC | 0.50% | Revolver | 6/14/2029 | 1263 |  |
| **Equity** |  |  |  |  |  |
| Neighborhood Grocery Catalyst Fund LLC | —% | Equity |  | 8265 |  |
| NW1LS CO-INVEST LP | —% | Equity |  | 747 |  |
| Worker Solutions LLC | —% | Equity |  | 2150 |  |
|  |  |  |  | $146100 | $(14) |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**June 30, 2025**

(9) Footnote is currently not in use.

(10) Under the 1940 Act, the Company would be deemed to "control" a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control overthe management or policies of the portfolio company. Under the 1940 Act, the Company would be deemed an "affiliated person" of a portfolio company if the Company owns 5% or more of the portfoliocompany's outstanding voting securities. As of June 30, 2025, the Company's non-controlled/affiliated investments and controlled/affiliated investments were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Non-controlled/affiliated investments** | **Fair Value as of** <br>**December 31, 2024**<br>| **Gross** <br>**Additions**<br>| **Gross** <br>**Reductions**<br>| **Change in Unrealized** <br>**Gains (Losses)**<br>| **Fair Value as of** <br>**June 30, 2025**<br>| **Investment**<br>**Income**<br>|
| 3360 Frankford LLC | $2459 | $— | $— | $— | $2459 | $— |
| GK9 Global Companies, LLC | 22124 | 115 | (22124) | (115) |  | 647 |
| IVM GK9 Holdings LLC | 5000 |  |  | 1856 | 6856 |  |
| Liberty Top Holdings, LLC |  | 3000 |  | 300 | 3300 | 69 |
| NW1LS CO-INVEST LP |  | 9463 |  |  | 9463 |  |
| **Non-controlled/affiliated investments** | $29583 | $12578 | $(22124) | $2041 | $22078 | $716 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Controlled/affiliated investments** | **Fair Value as of** <br>**December 31, 2024**<br>| **Gross** <br>**Additions**<br>| **Gross** <br>**Reductions**<br>| **Change in Unrealized** <br>**Gains (Losses)**<br>| **Fair Value as of** <br>**June 30, 2025**<br>| **Investment**<br>**Income**<br>|
| GELDO Inc. | $— | $3000 | $— | $— | $3000 | $— |
| Neighborhood Grocery Catalyst Fund LLC | 4219 | 562 | (547) |  | 4234 |  |
| Worker Solutions LLC | 350 | 1000 |  |  | 1350 |  |
| **Controlled/affiliated investments** | $4569 | $4562 | $(547) | $— | $8584 | $— |

---

(11) Securities exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), and may be deemed to be "restricted securities". Except as noted by this footnote, all of the instruments on this table are subject to restrictions on resale.

(12) Investments, or portion thereof, held by the SBIC subsidiary (as defined in Note 1).

(13) Industries are classified by The Global Industry Classification Standard ("GICS").

(14) The Company owns 31.25% of the equity interests in Neighborhood Grocery Catalyst Fund LLC.

(15) Investments, or portion thereof, held by the SSBIC subsidiary (as defined in Note 1).

(16) The Company owns 100.00% of the equity interests in Worker Solutions, LLC.

(17) The Company owns a 66.40%% of the equity interests in 3360 Frankford LLC.

(18) The Company owns a 7.02% share in Liberty Top Holdings, LLC.

(19) The Company owns a 30.00%% share in GELDO Inc.

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

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments**

**December 31, 2024**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Non-controlled/non-affiliated investments** | **Non-controlled/non-affiliated investments** | **Non-controlled/non-affiliated investments** |  |  |  |  |  |  |  |  |  |
| **Aerospace & Defense** | **Aerospace & Defense** | **Aerospace & Defense** |  |  |  |  |  |  |  |  |  |
| C Speed LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 6.00% | 10.33% | 10/1/2024 | 10/1/2029 | $1000 | $952 | $991 | 0.3% |
| C Speed LLC | (6)(7)(12) | First lien senior secured loan | S+ | 6.00% | 10.33% | 10/1/2024 | 10/1/2029 | 15262 | 15117 | 15117 | 4.3% |
|  |  |  |  |  |  |  |  |  | 16069 | 16108 | 4.6% |
| **Application Software** | **Application Software** | **Application Software** |  |  |  |  |  |  |  |  |  |
| CentralBDC Enterprises, LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 5.00% | 9.33% | 6/25/2024 | 6/11/2029 | 1642 | 1628 | 1642 | 0.5% |
| CentralBDC Enterprises, LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.00% | 9.33% | 6/25/2024 | 6/11/2029 | 16758 | 16660 | 16758 | 4.8% |
|  |  |  |  |  |  |  |  |  | 18288 | 18400 | 5.3% |
| **Commercial Services & Supplies** | **Commercial Services & Supplies** | **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |
| Rotolo Consultants, Inc. | (6)(7) | First lien senior secured loan | S+ | 6.95% | 11.73% | 12/20/2022 | 1/15/2029 | $20282 | $20195 | $20282 | 5.8% |
| Zero Waste Recycling LLC | (6)(7)(8) | First lien senior secured loan | S+ | 6.45% | 11.23% | 6/29/2022 | 5/15/2026 | 4597 | 4664 | 4597 | 1.3% |
| Zero Waste Recycling LLC | (6)(7) | First lien senior secured loan | S+ | 6.45% | 11.04% | 6/29/2022 | 5/15/2026 | 13186 | 13119 | 13186 | 3.7% |
| ZWR Holdings, Inc. |  | Subordinated debt | 14.00% (Inc. <br>10.00% PIK) | 14.00% (Inc. <br>10.00% PIK) | 14.00% | 8/16/2021 | 2/16/2027 | 1738 | 1738 | 1712 | 0.5% |
| ZWR Holdings, Inc. |  | Warrants |  |  |  | 8/16/2021 |  | 24953 |  |  | —% |
|  |  |  |  |  |  |  |  |  | 39716 | 39777 | 11.3% |
| **Construction & Engineering** | **Construction & Engineering** | **Construction & Engineering** |  |  |  |  |  |  |  |  |  |
| Synergi, LLC | (6)(7) | First lien senior secured loan | S+ | 7.50% | 12.09% | 12/19/2022 | 12/17/2027 | 17561 | 17449 | 17451 | 5.0% |
| Synergi, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 7.50% | —% | 12/19/2022 | 12/17/2027 |  | (22) | (23) | —% |
|  |  |  |  |  |  |  |  |  | 17427 | 17428 | 5.0% |
| **Diversified Financial Services** | **Diversified Financial Services** | **Diversified Financial Services** |  |  |  |  |  |  |  |  |  |
| Core Capital Partners II-S LP | (6)(7)(8) | First lien senior secured loan | S+ | 7.50% | 11.83% | 10/11/2024 | 10/11/2027 | 766 | 655 | 759 | 0.2% |
| Core Capital Partners II-S LP | (6)(7) | First lien senior secured loan | S+ | 7.50% | 11.83% | 10/11/2024 | 10/11/2027 | 28000 | 27733 | 27733 | 7.9% |
|  |  |  |  |  |  |  |  |  | 28388 | 28492 | 8.1% |
| **Food & Staples Retailing** | **Food & Staples Retailing** | **Food & Staples Retailing** |  |  |  |  |  |  |  |  |  |
| Capital City LLC | (6)(7)(8)(15) | First lien senior secured loan | S+ | 8.00% | —% | 9/20/2024 | 9/20/2029 |  | (24) |  | —% |
| Capital City LLC | (6)(7)(15) | First lien senior secured loan | S+ | 8.00% | 12.33% | 9/20/2024 | 9/20/2029 | 499 | 494 | 494 | 0.1% |
|  |  |  |  |  |  |  |  |  | 470 | 494 | 0.1% |
| **Gas Utilities** | **Gas Utilities** | **Gas Utilities** |  |  |  |  |  |  |  |  |  |
| TCFIII Owl Buyer LLC | (6)(7) | First lien senior secured loan | S+ | 5.50% | 9.96% | 1/31/2023 | 4/17/2026 | 10787 | 10737 | 10787 | 3.1% |
| TCFIII Owl Buyer LLC | (6)(7) | First lien senior secured loan | S+ | 5.50% | 10.94% |  | 4/17/2026 |  |  |  | —% |
|  |  |  |  |  |  |  |  |  | 10737 | 10787 | 3.1 |
| **Health Care Equipment & Services** | **Health Care Equipment & Services** | **Health Care Equipment & Services** |  |  |  |  |  |  |  |  |  |
| MSPB MSO, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 5.75% | 10.08% | 11/10/2023 | 11/10/2028 | 9863 | 9758 | 9863 | 2.8% |
| MSPB MSO, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 5.75% | 10.08% | 11/10/2023 | 11/10/2028 | 1695 | 1629 | 1695 | 0.5% |
| MSPB MSO, LLC | (6)(7) | First lien senior secured loan | S+ | 5.75% | 10.08% | 11/10/2023 | 11/10/2028 | 8391 | 8315 | 8391 | 2.4% |
|  |  |  |  |  |  |  |  |  | 19702 | 19949 | 5.7% |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2024**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Health Care Providers & Services** | **Health Care Providers & Services** | **Health Care Providers & Services** |  |  |  |  |  |  |  |  |  |
| Salt Dental Collective LLC | (6)(7) | First lien senior secured loan | S+ | 6.75% | 11.21% | 3/20/2023 | 2/15/2028 | 17768 | 17595 | 17768 | 5.0% |
|  |  |  |  |  |  |  |  |  | 17595 | 17768 | 5.0% |
| **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** |  |  |  |  |  |  |  |  |  |
| Aetius Holdings, LLC | (6)(7) | First lien senior secured loan | S+ | 7.00% | 11.59% | 1/25/2023 | 3/31/2025 | 1034 | 1027 | 1034 | 0.3% |
| LC Hospitality, LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.50% | 9.83% | 7/25/2024 | 7/25/2031 | 9843 | 9661 | 9843 | 2.8% |
|  |  |  |  |  |  |  |  |  | 10688 | 10877 | 3.1% |
| **Independent Power & Renewable** | **Independent Power & Renewable** | **Independent Power & Renewable** |  |  |  |  |  |  |  |  |  |
| National Carbon<br>Technologies – California, LLC | (8) | First lien senior secured loan |  | 12.25% | 12.25% | 5/31/2024 | 5/31/2029 | 8400 | 8388 | 8388 | 2.4% |
|  |  |  |  |  |  |  |  |  | 8388 | 8388 | 2.4% |
| **Electric Utilities** | **Electric Utilities** | **Electric Utilities** |  |  |  |  |  |  |  |  |  |
| truCurrent LLC | (6)(7)(8) | First lien senior secured loan | S+ | 7.25% | —% | 2/12/2024 | 2/12/2029 |  | (103) |  | —% |
| truCurrent LLC | (6)(7) | First lien senior secured loan | S+ | 7.25% | 11.58% | 2/12/2024 | 2/12/2029 | 12500 | 12389 | 12500 | 3.5% |
|  |  |  |  |  |  |  |  |  | 12286 | 12500 | 3.5% |
| **IT Services** | **IT Services** | **IT Services** |  |  |  |  |  |  |  |  |  |
| Dartpoints Operating Company, LLC | (6)(7)(9)<br>(12)<br>| First lien senior secured loan | S+ | 8.93% | 13.62% | 5/1/2023 | 5/14/2026 | 3425 | 3399 | 3425 | 1.0% |
| Xpect Solutions, LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 5.75% | 10.08% | 10/7/2024 | 10/7/2029 | 7500 | 7452 | 7427 | 2.1% |
| Xpect Solutions, LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 5.75% | 10.08% | 10/7/2024 | 10/7/2029 | 750 | 731 | 743 | 0.2% |
| Xpect Solutions, LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.75% | 10.08% | 10/7/2024 | 10/7/2029 | 22444 | 22225 | 22225 | 6.3% |
|  |  |  |  |  |  |  |  |  | 33807 | 33820 | 9.6% |
| **Interactive Media & Services** | **Interactive Media & Services** | **Interactive Media & Services** |  |  |  |  |  |  |  |  |  |
| Dance Nation Holdings LLC | (6)(7) | First lien senior secured loan | S+ | 6.95% | 11.54% | 8/24/2023 | 8/24/2028 | 31815 | 31565 | 31815 | 9.0% |
| Dance Nation Holdings LLC | (6)(7)(8) | First lien senior secured loan | S+ | 6.95% | 11.54% | 8/24/2023 | 8/24/2028 | 826 | 794 | 826 | 0.2% |
| Dance Nation Topco LLC |  | Preferred Equity |  |  |  | 8/24/2023 |  | 1652200 | 1652 | 1652 | 0.5% |
|  |  |  |  |  |  |  |  |  | 34011 | 34293 | 9.7% |
| **Media** | **Media** | **Media** |  |  |  |  |  |  |  |  |  |
| Direct Digital Holdings, LLC | (6)(7) | First lien senior secured loan | S+ | 8.45% | 13.11% | 6/29/2022 | 12/3/2026 | 7596 | 7576 | 7264 | 2.1% |
| Direct Digital Holdings, LLC | (6)(7) | First lien senior secured loan | S+ | 8.45% | 12.93% | 6/29/2022 | 12/3/2026 | 26625 | 26564 | 25461 | 7.2% |
|  |  |  |  |  |  |  |  |  | 34140 | 32725 | 9.3% |
| **Pharmaceuticals** | **Pharmaceuticals** | **Pharmaceuticals** |  |  |  |  |  |  |  |  |  |
| Med Learning Group, LLC | (6)(7) | First lien senior secured loan | S+ | 6.25% | 10.58% | 3/26/2024 | 12/30/2027 | 15570 | 15439 | 15570 | 4.4% |
| Med Learning Group, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 6.25% | 10.58% | 3/26/2024 | 12/30/2027 | 856 | 839 | 856 | 0.2% |
|  |  |  |  |  |  |  |  |  | 16278 | 16426 | 4.6% |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |  |
| M&S Acquisition Corporation | (6)(7)(12) | First lien senior secured loan | S+ | 6.50% | 11.09% | 12/19/2023 | 12/19/2028 | 42215 | 41862 | 42216 | 12.0% |
| Oakwell Holding LLC | (15) | Convertible Note |  | 10.00% | 10.00% | 12/23/2024 | 12/31/2028 | 1500 | 1500 | 1500 | 0.4% |
| ZRG Partners LLC | (6)(7)(8) | First lien senior secured loan | S+ | 6.00% | 10.46% | 10/21/2024 | 6/14/2029 | 2600 | 2568 | 2580 | 0.7% |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2024**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| ZRG Partners LLC | (6)(7)(8) | First lien senior secured loan | P+ | 5.00% | 12.50% | 10/21/2024 | 6/14/2029 | 168 | 150 | 167 | —% |
| ZRG Partners LLC | (6)(7) | First lien senior secured loan | S+ | 6.00% | 10.66% | 10/21/2024 | 6/14/2029 | 11402 | 11322 | 11322 | 3.2% |
|  |  |  |  |  |  |  |  |  | 57402 | 57785 | 16.3% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |  |
| Standard Real Estate Investments LP | (6)(7) | First lien senior secured loan | S+ | 8.70% | 13.29% | 10/6/2023 | 10/6/2026 | 2000 | 1987 | 1985 | 0.6% |
| Standard Real Estate Investments LP | (6)(7) | First lien senior secured loan | S+ | 8.70% | 13.29% | 10/6/2023 | 10/6/2026 | 3000 | 2978 | 2978 | 0.8% |
|  |  |  |  |  |  |  |  |  | 4965 | 4963 | 1.4% |
| **Restaurants** | **Restaurants** | **Restaurants** |  |  |  |  |  |  |  |  |  |
| Café Zupas, L.C | (6)(7)(8)<br>(12)<br>| First lien senior secured loan | S+ | 7.00% | 12.00% | 11/20/2023 | 12/31/2027 | 3121 | 3095 | 3112 | 0.9% |
| Café Zupas, L.C | (6)(7)(8)(12) | First lien senior secured loan | S+ | 7.00% | 12.02% | 11/20/2023 | 12/31/2027 | 334 | 330 | 333 | 0.1% |
| Café Zupas, L.C | (6)(7)(12) | First lien senior secured loan | S+ | 7.00% | 12.02% | 11/20/2023 | 12/31/2027 | 8359 | 8289 | 8338 | 2.4% |
|  |  |  |  |  |  |  |  |  | 11714 | 11783 | 3.4% |
| **Road & Rail** | **Road & Rail** | **Road & Rail** |  |  |  |  |  |  |  |  |  |
| 160 Driving Academy (a/k/a Rock Gate Capital, LLC) | (6)(7)(12) | First lien senior secured loan | S+ | 6.75% | 11.08% | 5/31/2024 | 5/30/2029 | 42000 | 41613 | 39900 | 11.3% |
| 160 Driving Academy (a/k/a Rock Gate Capital, LLC) | (12) | Warrants |  |  |  | 5/31/2024 |  | 166108 |  |  | —% |
|  |  |  |  |  |  |  |  |  | 41613 | 39900 | 11.3% |
| **Specialized Consumer Services** | **Specialized Consumer Services** | **Specialized Consumer Services** |  |  |  |  |  |  |  |  |  |
| Best Friends Pet Care Holdings Inc. | (6)(7)(8)<br>(12)<br>| First lien senior secured loan | S+ | 6.45% | 11.04% | 12/21/2023 | 6/21/2028 | 24632 | 24396 | 24632 | 7.0% |
| Best Friends Pet Care Holdings Inc. | (6)(7)(12) | First lien senior secured loan | S+ | 6.45% | 11.04% | 12/21/2023 | 6/21/2028 | 15656 | 15501 | 15656 | 4.4% |
|  |  |  |  |  |  |  |  |  | 39897 | 40288 | 11.4% |
| **Transportation Infrastructure** | **Transportation Infrastructure** | **Transportation Infrastructure** |  |  |  |  |  |  |  |  |  |
| H.W. Lochner, Inc. | (6)(7) | First lien senior secured loan | S+ | 6.25% | 10.99% | 3/29/2023 | 7/2/2027 | 13006 | 12740 | 13006 | 3.7% |
| Trilon Group, LLC | (6)(7) | First lien senior secured loan | S+ | 5.50% | 10.31% | 3/24/2023 | 5/25/2029 | 12157 | 12152 | 12157 | 3.4% |
| Trilon Group, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 5.50% | 10.19% | 3/24/2023 | 5/25/2029 | 1253 | 1253 | 1253 | 0.4% |
| Trilon Group, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 5.50% | 10.25% | 3/24/2023 | 5/25/2029 | 114 | 107 | 114 | —% |
|  |  |  |  |  |  |  |  |  | 26252 | 26530 | 7.5% |
| **Water Utilities** | **Water Utilities** | **Water Utilities** |  |  |  |  |  |  |  |  |  |
| Ironhorse Purchaser, LLC | (6)(7)(8) | First lien senior secured loan | S+ | 5.25% | —% | 12/21/2023 | 9/30/2027 |  | (94) |  | —% |
| Ironhorse Purchaser, LLC | (6)(7) | First lien senior secured loan | S+ | 5.25% | 9.61% | 12/21/2023 | 9/30/2027 | 10021 | 9868 | 10021 | 2.8% |
| Puris LLC | (6)(7)(12) | First lien senior secured loan | S+ | 5.75% | 10.07% | 6/28/2024 | 6/28/2029 | 13433 | 13338 | 13433 | 3.9% |
|  |  |  |  |  |  |  |  |  | 23112 | 23454 | 6.7% |
| **Total non-controlled/non-affiliated investments** | **Total non-controlled/non-affiliated investments** | **Total non-controlled/non-affiliated investments** |  |  |  |  |  |  | 522945 | 522935 | 148.4% |
| **Non-controlled/affiliated investments (10)** | **Non-controlled/affiliated investments (10)** | **Non-controlled/affiliated investments (10)** |  |  |  |  |  |  |  |  |  |
| **Commercial Services & Supplies** | **Commercial Services & Supplies** | **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |
| GK9 Global Companies, LLC | (6)(7)(12) | First lien senior secured loan | S+ | 7.50% | 12.09% | 10/07/2022 | 10/07/2027 | 18734 | 18630 | 18734 | 5.3% |
| GK9 Global Companies, LLC | (6)(7)(8)(12) | First lien senior secured loan | S+ | 7.50% | 12.09% | 10/07/2022 | 10/07/2027 | 3390 | 3379 | 3390 | 1.0% |
| IVM GK9 Holdings LLC |  | Equity |  |  |  | 10/07/2022 |  | 14969 | 4881 | 5000 | 1.4% |

---

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2024**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
|  |  |  |  |  |  |  |  | 26890 | 27124 | 7.7% |
| **Diversified Consumer Services** | **Diversified Consumer Services** | **Diversified Consumer Services** |  |  |  |  |  |  |  |  |
| 3360 Frankford LLC | (2)(17) | Equity |  |  | 9/23/2024 |  | 2458671 | 2459 | 2459 | 0.7% |
|  |  |  |  |  |  |  |  | 2459 | 2459 | 0.7% |
| **Total non-controlled/affiliated investments** | **Total non-controlled/affiliated investments** | **Total non-controlled/affiliated investments** |  |  |  |  |  | 29349 | 29583 | 8.4% |
| **Controlled/affiliated investments (10)** | **Controlled/affiliated investments (10)** | **Controlled/affiliated investments (10)** |  |  |  |  |  |  |  |  |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |
| Worker Solutions LLC | (16) | Equity |  |  | 12/30/2024 |  | 350000 | 350 | 350 | 0.1% |
|  |  |  |  |  |  |  |  | 350 | 350 | 0.1% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |
| Neighborhood Grocery Catalyst Fund LLC | (2)(8)(14) | Equity |  |  | 3/28/2024 |  | 4218750 | 4219 | 4219 | 1.2% |
|  |  |  |  |  |  |  |  | 4219 | 4219 | 1.2% |
| **Total controlled/affiliated investments** | **Total controlled/affiliated investments** | **Total controlled/affiliated investments** |  |  |  |  |  | 4569 | 4569 | 1.3% |
| **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** |  |  |  |  |  | $556863 | $557087 | 158.1% |

---

(1) Unless otherwise indicated, all investments are considered Level 3 investments. The fair value of the investment was determined using significant unobservable inputs. See Note 4 "Fair Value Measurement ofInvestments."

(2) Represents an investment that is not a "qualifying asset" under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act"). As of December 31, 2024, non-qualifying assets represent0.9% of the Company's portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.

(3) All investments are denominated in U.S. dollars unless otherwise noted. The prior year table has been modified to conform to the current year.

(4) The total funded par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments.

(5) Percentage is based on net assets of $352,406 as of December 31, 2024.

(6) Loan includes interest rate floor feature, which generally ranges from 1.00% to 4.00%.

(7) Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to the Secured Overnight Financing Rate ("SOFR" or "S") or an alternate base rate (commonly based on theFederal Funds Rate or the U.S. Prime Rate), which generally resets quarterly. For each such loan, the Company has indicated the reference rate used and provided the spread and the interest rate in effect as ofDecember 31, 2024. As of December 31, 2024, the reference rates for our variable rate loans were the 90-day SOFR at 4.31% and 30-day SOFR at 4.33%.

(8) Position or portion thereof is an unfunded loan or equity commitment, and no interest is being earned on the unfunded portion, although the investment may earn unused commitment fees. Negative cost and fairvalue, if any, results from unamortized fees, which are capitalized to the cost of the investment. The unfunded commitment may be subject to a commitment termination date that may expire prior to the maturitydate stated. See below for more information on the Company's unfunded commitments as of December 31, 2024:

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2024**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investments** | **Unused Fee Rate** | **Commitment Type** | **Commitment**<br>**Expiration Date**<br>| **Unfunded** <br>**Commitment**<br>| **Fair Value** |
| **First Lien Debt** |  |  |  |  |  |
| Zero Waste Recycling LLC | 0.50% | Delayed Draw Term Loan | 5/15/2026 | $380 | $— |
| Ironhorse Purchaser, LLC | 1.00% | Delayed Draw Term Loan | 9/30/2027 | 6377 |  |
| Core Capital Partners II-S LP | —% | Revolver | 10/11/2027 | 11234 |  |
| Synergi, LLC | 0.50% | Revolver | 12/17/2027 | 3750 | (23) |
| Med Learning Group LLC | 1.00% | Delayed Draw Term Loan | 12/30/2027 | 3425 |  |
| Café Zupas, L.C | 0.50% | Delayed Draw Term Loan | 12/31/2027 | 223 | (1) |
| Café Zupas, L.C | 0.50% | Revolver | 12/31/2027 | 223 | (1) |
| Dance Nation Holdings LLC | 0.50% | Revolver | 8/24/2028 | 3304 |  |
| MSPB MSO, LLC | 0.38% | Delayed Draw Term Loan | 11/10/2028 | 17630 |  |
| MSPB MSO, LLC | 0.38% | Revolver | 11/10/2028 | 6781 |  |
| truCurrent LLC | 0.50% | Delayed Draw Term Loan | 2/12/2029 | 25000 |  |
| Trilon Group, LLC | 1.00% | Delayed Draw Term Loan | 5/25/2029 | 1347 |  |
| Trilon Group, LLC | 0.50% | Revolver | 5/25/2029 | 801 |  |
| National Carbon Technologies – California, LLC | 2.50% | Bonds | 5/31/2029 | 11600 |  |
| CentralBDC Enterprises, LLC | 0.50% | Revolver | 6/11/2029 | 1516 |  |
| ZRG Partners LLC | 1.00% | Delayed Draw Term Loan | 6/14/2029 | 3435 |  |
| ZRG Partners LLC | 0.50% | Revolver | 6/14/2029 | 2357 |  |
| Capital City LLC | —% | Delayed Draw Term Loan | 9/20/2029 | 2500 |  |
| C Speed LLC | 0.50% | Revolver | 10/01/2029 | 4000 |  |
| Xpect Solutions, LLC | 0.50% | Revolver | 10/07/2029 | 2500 |  |
| Xpect Solutions, LLC | 0.50% | Delayed Draw Term Loan | 10/07/2029 | 1250 |  |
| **Equity** |  |  |  |  |  |
| Neighborhood Grocery Catalyst Fund LLC | —% | Equity |  | 8281 |  |
| Worker Solutions LLC | —% | Equity |  | 3150 |  |
|  |  |  |  | $121064 | $(25) |

---

(9) The Company categorized its unitranche loan as First Lien Senior Secured Loan. The First Lien Senior Secured Loan is comprised of two components: a first out tranche ("First Out") and last out tranche ("LastOut"). The Company syndicates the First Out tranche and retains the Last Out tranche. The First Out and Last Out tranches have the same maturity date. Interest disclosed reflects the contractual rate of First LienSenior Secured Loan. The First Out tranche has priority over the Last Out tranche with respect to payments of principal, interest and any amounts due thereunder. The Company may be entitled to receive additionalinterest as a result of the Agreement Among Lenders ("AAL") entered into with the First Out lender. In exchange for the higher interest rate, the Last Out tranche is at a greater risk of loss.

(10) Under the 1940 Act, the Company would be deemed to "control" a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over themanagement or policies of the portfolio company. Under the 1940 Act, the Company would be deemed an "affiliated person" of a portfolio company if the Company owns 5% or more of the portfolio company'soutstanding voting securities. As of December 31, 2024, the Company's non-controlled/affiliated investments and controlled/affiliated investments were as follows:

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Non-controlled/affiliated investments** | **Fair Value as of** <br>**December 31, 2023**<br>| **Gross** <br>**Additions**<br>| **Gross** <br>**Reductions**<br>| **Change in Unrealized** <br>**Gains (Losses)**<br>| **Fair Value as of** <br>**December 31, 2024**<br>| **Investment**<br>**Income**<br>|
| GK9 Global Companies, LLC | $22350 | $36 | $(227) | $(35) | $22124 | $3098 |
| IVM GK9 Holdings LLC | 4901 |  |  | 99 | 5000 | 84 |
| 3360 Frankford LLC |  | 2459 |  |  | 2459 |  |
| **Non-controlled/affiliated investments** | $27251 | $2495 | $(227) | $64 | $29583 | $3182 |
| **Controlled/affiliated investments** | **Fair Value as of** <br>**December 31, 2023**<br>| **Gross** <br>**Additions**<br>| **Gross** <br>**Reductions**<br>| **Change in Unrealized** <br>**Gains (Losses)**<br>| **Fair Value as of** <br>**December 31, 2024**<br>| **Investment**<br>**Income**<br>|
| Neighborhood Grocery Catalyst Fund LLC | $— | $4219 | $— | $— | $4219 | $— |
| Worker Solutions LLC |  | 350 |  |  | 350 |  |
| **Controlled/affiliated investments** | $— | $4569 | $— | $— | $4569 | $— |

---

(11) Securities exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), and may be deemed to be "restricted securities". Except as noted by this footnote, all of the instruments onthis table are subject to restrictions on resale.

(12) Investments, or portion thereof, held by the SBIC subsidiary (as defined in Note 1).

(13) Industries are classified by The Global Industry Classification Standard ("GICS").

(14) The Company owns a 31.25% share in Neighborhood Grocery Catalyst Fund LLC.

(15) Investments, or portion thereof, held by the SSBIC subsidiary (as defined in Note 1).

(16) The Company owns a 100.00% share in Worker Solutions LLC.

(17) The Company owns a 66.40% share in 3360 Frankford LLC.

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

<u>[**Table of Contents**](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Lafayette Square USA, Inc.**

**Notes to Consolidated Financial Statements**

**June 30, 2025**

**(dollar amounts in thousands, except per share data or otherwise noted)**

**Note 1. Organization**

Lafayette Square USA, Inc. (the "Company," which term refers to either Lafayette Square USA, Inc. or Lafayette Square

USA, Inc. together with its consolidated subsidiaries, as the context may require) is an externally managed, non-diversified,

closed-end investment company that has elected to be regulated as a business development company ("BDC") under the

1940 Act. On May 16, 2022, Lafayette Square Empire BDC, Inc. filed with the Secretary of State of the State of Delaware

a Certificate of Amendment to its Certificate of Incorporation to change its corporate name from "Lafayette Square Empire

BDC, Inc." to "Lafayette Square USA, Inc.," effective May 16, 2022. In addition, for U.S. federal income tax purposes, the

Company adopted an initial tax year end of December 31, 2021, and was taxed as a corporation for the tax years ending

December 31, 2021 and December 31, 2022. The Company has elected to be treated, and intends to qualify annually

thereafter, as a RIC under Subchapter M of the Code. However, there is no guarantee that the Company will qualify to

make such an election for any future taxable year.

The Company is externally managed by its Adviser pursuant to the Investment Advisory Agreement. The Adviser is a

subsidiary of Lafayette Square Holding Company, LLC (together with its controlled subsidiaries, including the Adviser and

LS Administration, LLC, "Lafayette Square").

The Company invests in businesses that are primarily domiciled, headquartered and/or have a significant operating

presence in each of the ten regions below (each, a "Target Region"), with a goal to invest at least 5% of its assets in each

Target Region over time. However, the Company anticipates that it could take time to invest substantially all of the capital

it expects to raise in a geographically diverse manner due to general market conditions, the time necessary to identify,

evaluate, structure, negotiate and close suitable investments in private middle market companies, and the potential for

allocations to other affiliated investment vehicles which focus their investments on a specific region. As a result, at any

point in time, the Company may have a disproportionate amount of investments in certain Target Regions, and there can be

no assurance that the Company will achieve geographic diversification across all ten Target Regions.

• Cascade Region: Alaska, Idaho, Oregon and Washington

• Empire Region: New York, New Jersey, Connecticut and Pennsylvania

• Far West Region: California, Hawaii and Nevada

• Four Corners Region: Arizona, Colorado, New Mexico and Utah

• Great Lakes Region: Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin

• Gulf Coast Region: Arkansas, Louisiana, Oklahoma and Texas

• Mid-Atlantic Region: Delaware, Kentucky, Maryland, North Carolina, South Carolina, Tennessee, Virginia and West

&nbsp;&nbsp;&nbsp;&nbsp;Virginia and the District of Columbia

• Northeast Region: Maine, Massachusetts, New Hampshire, Rhode Island and Vermont

• Plains Region: Iowa, Kansas, Missouri, Montana, Nebraska, North Dakota, South Dakota and Wyoming

• Southeast Region: Alabama, Georgia, Florida, Mississippi and the territory of Puerto Rico

The Company's investment objective is to generate favorable risk-adjusted returns, including current income and capital

appreciation, from directly originated investments in middle market companies.

The Company invests primarily in first and second lien loans and, to a lesser extent, in subordinated and mezzanine loans

and equity and equity-like securities, including common stock, preferred stock and warrants. The Company defines middle

market companies as those with annual revenues between $10 million and $1 billion, and annual earnings before interest,

taxes, depreciation, and amortization ("EBITDA") of between $10 million and $100 million, although the Company may

invest in larger or smaller companies. The Company also may purchase interests in loans, corporate bonds or other

instruments through secondary market transactions.

The Company previously formed wholly-owned subsidiaries, LS BDC Holdings, LLC, LS BDC Holdings (DN), LLC, LS

BDC Holdings (160), LLC and LS SBIC Holdings (160), LLC, each of which were Delaware limited liability companies,

to hold certain equity or equity-like investments in portfolio companies to which the Company has also made loans. In

addition, LS BDC Holdings (NGCF), LLC, a wholly-owned subsidiary of the Company, was formed to co-own and co-

manage NGCF Manager LLC (the "NGCF Manager") with the affiliate of a third-party investor. The NGCF Manager

manages Neighborhood Grocery Catalyst Fund LLC ("NGCF"), a private real estate investment vehicle, whose investment

strategy focuses on necessity-based, ecommerce-resistant, and well-located neighborhood shopping centers anchored by

omni-channel grocers serving the essential needs of diverse communities.

In December of 2024, in an effort to simplify its internal structure, the Company consolidated its equity investments in LS

BDC Holdings, LLC. On December 18, 2024, LS BDC Holdings (NGCF), LLC transferred its interest in NGCF Manager

to LS BDC Holdings, LLC and on December 30, 2024, dissolved. On December 31, 2024, LS BDC Holdings (160), LLC

and LS BDC Holdings (DN), LLC merged into LS BDC Holdings, LLC.

Additionally, the Company formed two wholly-owned subsidiaries, LS SBIC LP and LS SSBIC LP, each licensed by the

U.S. Small Business Administration (the "SBA"), to invest in eligible "small businesses" as defined by the SBA. LS SBIC

LP received its SBIC license on February 1, 2023 (made effective as of January 27, 2023) and LS SSBIC LP received its

SSBIC license on September 12, 2024. SBA regulations currently permit SBIC LP to borrow up to $175.0 millionin SBA-

guaranteed debentures with at least $87.5 million in regulatory capital (as defined in the SBA regulations), and SSBIC

license to borrow an additional $175.0 million of SBA-guaranteed debentures with at least $87.5 million in regulatory

capital, subject to the SBA's approval. As a result, the Company has access to up to $350.0 million in SBA-guaranteed

debentures amongst its family of SBIC funds under common control. The Company consolidates its wholly-owned

subsidiaries in these consolidated financial statements from the date of each subsidiary's formation. All significant

intercompany transactions and balances have been eliminated in such consolidation.

**Note 2. Significant Accounting Policies**

**Basis of Presentation**

The following is a summary of significant accounting policies consistently followed by the Company in the preparation of

its consolidated financial statements. The Company is an investment company and accordingly applies specific accounting

and financial reporting requirements under Accounting Standards Codification, as issued by the Financial Accounting

Standards Board ("ASC") Topic 946—Financial Services—Investment Companies ("Topic 946"). The accompanying

consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the

United States ("GAAP") and pursuant to Articles 6, 10 and 12 of Regulation S-X. Certain reclassifications have been made

to certain prior period balances to conform with current presentation.

These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial

statements and notes related thereto for the year ended December 31, 2024, included in the Company's annual report on

Form 10-K, which was filed with the U.S. Securities and Exchange Commission (the "SEC") on March 14, 2025. The

results for the three and six months endedJune 30, 2025 are not necessarily indicative of the results to be expected for the

full fiscal year, any other interim period or any future year or period.

**Use of Estimates**

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates

and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities

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at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting

period. Actual results could differ from those estimates.

**Cash and Cash Equivalents**

The Company deposits its cash in a financial institution and, at times, such deposits may exceed the Federal Deposit

Insurance Corporation insurance limits. As of June 30, 2025 and December 31, 2024, the Company held $119,319 and

$202,452 in cash and cash equivalents, respectively, of which no cash or cash equivalents were restricted. Of the total cash

and cash equivalents balance, $119,319 and $202,452 were held in an interest bearing accounts with U.S. Bank National

Association as of June 30, 2025 and December 31, 2024, respectively. For the three and six months endedJune 30, 2025,

the Company earned $1,034 and $2,472, respectively, in interest on cash and cash equivalents balances, and the balance is

included under Interest from cash and cash equivalents in the Consolidated Statements of Operations. For the three and six

months endedJune 30, 2024, the Company earned $817 and $1,753, respectively, in interest on cash and cash equivalents

balances, and the balance is included under Interest from cash and cash equivalents in the Consolidated Statements of

Operations.

**Organization and Offering Costs**

Organization costs consist of costs incurred to establish the Company and enable it to do business legally. Organization

costs are expensed as incurred. Offering costs consist of costs incurred in connection with the offering of the common

stock of the Company.

The Company's initial organizational costs incurred were expensed and initial offering costs are amortized over one year.

The Company reimburses the Adviser for the organization and offering costs it incurs on the Company's behalf. If actual

organization and offering costs incurred exceed $1 million, the Adviser or its affiliates will bear the excess costs. As of

June 30, 2025, the Company incurred $925(since inception) of organization and offering costs.

**Deferred Financing Costs**

Deferred financing costs, incurred in connection with any credit facility and SBA-guaranteed debentures (see Note 5) are

deferred and amortized over the life of the respective credit facility and SBA-guaranteed debentures.

**Indemnifications**

In the ordinary course of its business, the Company may enter into contracts or agreements that contain indemnifications or

warranties. Future events could occur that lead to the execution of these provisions against the Company. Based on its

history and experience, management feels that the likelihood of such an event is remote.

**Revenue Recognition**

Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by

the difference between the net proceeds from the disposition and the amortized cost basis of investment using specific

identification method without regard to unrealized gains or losses previously recognized. The Company reports current

period changes in fair value of investments that are measured at fair value as a component of the net change in unrealized

appreciation (depreciation) on investments in the Consolidated Statements of Operations.

*Investment Income*

Interest income, including amortization of premium and accretion of discount, is recorded on the accrual basis to the extent

that such amounts are collected. The Company records amortized or accreted discounts or premiums as interest income

using the effective interest method or straight-line interest method, as applicable, and adjusted only for material

amendments or prepayments. Dividend income, which represents dividends from equity investments and distributions from

subsidiaries, if any, is recognized on an accrual basis to the extent that the Company collects such amount.

*Original Issue Discount*

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Discounts to par on portfolio securities are accreted into income over the tenor of the instrument. Any remaining discount

is accreted into income upon prepayment or redemption of the instrument. The Company then amortizes such amounts

using the effective interest method as interest income over the expected life of the investment.

*PIK Interest*

The Company may, from time to time, hold loans in its portfolio that contain a payment-in-kind ("PIK") interest provision.

PIK interest, computed at the contractual rate specified in each loan agreement, is periodically added to the principal

balance of the loan, rather than being paid to the Company in cash, and is recorded as interest income. Thus, the actual

collection of PIK interest in cash may be deferred until the time of debt principal repayment.

PIK interest, which is a non-cash source of income at the time of recognition, is included in the Company's taxable income.

This affects the amount the Company would be required to distribute to its stockholders to maintain its tax treatment as a

RIC for federal income tax purposes, even though the Company has not yet collected the cash.

*Fee Income*

Origination fees received are recorded as deferred income and recognized as investment income over the term of the loan.

Upon prepayment of a loan, any unamortized origination fees are recorded as investment income. The Company receives

certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties,

structuring fees, covenant waiver fees and loan amendment fees, which are recorded as investment income when earned.

*Non-accrual loans*

A loan can be left on accrual status during the period the Company is pursuing repayment of the loan. Management reviews

all loans that become 90 days or more past due on principal and interest, or when there is reasonable doubt that principal or

interest will be collected, for possible placement on non-accrual status. When a loan is placed on non-accrual status, unpaid

interest credited to income is reversed. Additionally, any original issue discount and market discount are no longer accreted

to interest income as of the date such loan is placed on non-accrual status. Interest payments received on non-accrual loans

are recognized as income or applied to principal depending upon management's judgment regarding collectability. Non-

accrual loans are restored to accrual status when past due principal and interest is paid, and, in management's judgment,

future payments are likely to remain current. As of June 30, 2025, we had no investments on non-accrual status.

**Investment Classification**

The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, the

Company is deemed to be an "Affiliated Person" of a portfolio company if it owns more than 5% of a portfolio company's

outstanding voting securities. The Company refers to such investments in Affiliated Persons as "Affiliated Investments."

Under the 1940 Act, the Company is deemed to be an Affiliated Person and to "control" a portfolio company if it owns

more than 25% of its outstanding voting securities and/or has the power to exercise control over the management or

policies of such portfolio company. Such investments in portfolio companies that the Company "controls" are referred to as

"Control Investments." Investments which are neither Control Investments or Affiliated Investments are referred to as

"Non-Controlled/Non-Affiliated Investments."

**Fair Value of Financial Instruments**

The Company applies fair value to all of its financial instruments in accordance with ASC Topic 820—Fair Value

Measurement ("ASC Topic 820"). ASC Topic 820 defines fair value, establishes a framework used to measure fair value

and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its

financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value

hierarchy.

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of

factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active

exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models

or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.

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Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial

instruments classified as Level 3.

Investments for which market quotations are not readily available are valued at fair value as determined in good faith

pursuant to Rule 2a-5 under the 1940 Act and ASC Topic 820. As a general principle, the fair value of a security or other

asset is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between

market participants at the measurement date. Pursuant to Rule 2a-5, the board of directors (the "Board") has designated the

Adviser as the valuation designee ("Valuation Designee") for the Company to perform the fair value determination relating

to all Company investments, subject to the oversight of the Board. The Adviser may carry out its designated

responsibilities as Valuation Designee through various teams and committees. The Valuation Designee's Board-approved

policies and procedures govern the Valuation Designee's selection and application of methodologies for determining and

calculating the fair value of Company investments. The Valuation Designee may value Company portfolio securities for

which market quotations are not readily available and other Company assets utilizing inputs from pricing sources,

quotation reporting systems, valuation agents and other third-party sources.

The Adviser has established a valuation committee (the "Valuation Committee") to carry out the day-to-day fair valuation

responsibilities and has adopted policies and procedures to govern activities of the Valuation Committee and the

performance of functions required to determine the fair value of the Company's investments in good faith. These functions

include periodically assessing and managing material risks associated with fair value determinations, selecting, applying,

reviewing, and testing fair value methodologies, monitoring for circumstances that may necessitate the use of fair value,

and overseeing and evaluating pricing services used.

**Distributions** 

Distributions to common stockholders are recorded on the record date. Subject to the discretion of and as determined by the

Board, the Company will authorize and declare ordinary cash distributions approved by the Board on a quarterly basis. The

amount to be paid out as a dividend or distribution is determined by the Board each quarter and is generally based upon the

earnings estimated by management. Net realized capital gains, if any, are distributed to shareholders at least annually,

although the Company can retain such capital gains for investment in its discretion.

The Company has adopted a dividend reinvestment plan (the "DRIP") that provides for reinvestment of any distributions

the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the

Board authorizes and the Company declares a cash distribution, then stockholders who have not "opted out" of the DRIP

will have their cash distribution automatically reinvested in additional shares of the Company's common stock, rather than

receiving the cash distribution. Shares issued under the DRIP will be issued at a price per share equal to the most recent net

asset value ("NAV") per share as determined by the Board (subject to adjustment to the extent required by Section 23 of

the 1940 Act).

**Recent Accounting Pronouncements**

The Company considers the applicability and impact of all accounting standard updates ("ASU") issued by the Financial

Accounting Standards Board ("FASB"). ASUs not listed below were assessed and either determined to be not applicable or

expected to have minimal impact on the Company's consolidated financial statements.

**Segment Reporting**

In accordance with ASC Topic 280 – "Segment Reporting (ASC 280)," the Company has determined that it has a single

operating and reporting segment. As a result, the Company's segment accounting policies are the same as described herein

and the Company does not have any intra-segment sales and transfers of assets.

The Company operates through a single operating and reporting segment with an investment objective to generate both

current income, and to a lesser extent, capital appreciation through debt and equity investments. The chief operating

decision maker ("CODM") is comprised of the Company's chief executive officer and chief financial officer and assesses

the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company's

net increase in net assets resulting from operations ("net income"). In addition to numerous other factors and metrics, the

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CODM utilizes net income as a key metric in determining the amount of dividends to be distributed to the Company's

stockholders. As the Company's operations comprise of a single reporting segment, the segment assets are reflected on the

accompanying consolidated balance sheet as "total assets" and the significant segment expenses are listed on the

accompanying consolidated statement of operations.

**Note 3. Investments**

The following tables show the composition of the Company's investment portfolio, at amortized cost and fair value (with

corresponding percentage of total portfolio investments) as of June 30, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value**  | **Fair Value**  |
| First lien senior secured loans | $679771 | 93.2% | $679742 | 92.9% |
| Equity | 43387 | 5.9% | 45662 | 6.2% |
| Subordinated debt | 3293 | 0.5% | 3293 | 0.4% |
| Preferred equity | 1652 | 0.2% | 2018 | 0.3% |
| Convertible Note | 1500 | 0.2% | 1500 | 0.2% |
| Warrants |  | —% |  | —% |
| **Total**  | $729603 | 100.0% | $732215 | 100.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| First lien senior secured loans | $540064 | 97.0% | $540195 | 96.9% |
| Equity | 11909 | 2.1% | 12028 | 2.2% |
| Subordinated debt | 1738 | 0.3% | 1712 | 0.3% |
| Preferred equity | 1652 | 0.3% | 1652 | 0.3% |
| Convertible Note | 1500 | 0.3% | 1500 | 0.3% |
| Warrants |  | —% |  | —% |
| **Total** | $556863 | 100.0% | $557087 | 100.0% |

---

The following tables show the composition of the Company's investment portfolio by geographic region, at amortized cost

and fair value (with corresponding percentage of total portfolio investments) as of June 30, 2025 and December 31, 2024.

The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which

may not be indicative of the primary source of the portfolio company's business:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value**  | **Fair Value**  |
| Empire | $204842 | 28.1% | $206882 | 28.3% |
| Far West | 135992 | 18.6% | 136883 | 18.7% |
| Gulf Coast | 129587 | 17.8% | 128127 | 17.5% |
| Mid-Atlantic | 122595 | 16.8% | 123171 | 16.7% |
| Great Lakes | 78355 | 10.7% | 76676 | 10.5% |
| Southeast | 24685 | 3.4% | 26757 | 3.7% |
| Cascade | 17539 | 2.4% | 17677 | 2.4% |
| Northeast | 9877 | 1.4% | 9902 | 1.4% |
| Four Corners | 6131 | 0.8% | 6140 | 0.8% |
| **Total**  | $729603 | 100.0% | $732215 | 100.0% |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Mid-Atlantic | $127815 | 22.9% | $128238 | 23.1% |
| Gulf Coast | 90857 | 16.3% | 90079 | 16.2% |
| Empire | 88743 | 15.9% | 89350 | 16.0% |
| Far West | 80838 | 14.5% | 81472 | 14.6% |
| Great Lakes | 77697 | 14.0% | 76300 | 13.7% |
| Southeast | 46592 | 8.4% | 47073 | 8.4% |
| Four Corners | 25226 | 4.5% | 25307 | 4.5% |
| Cascade | 17595 | 3.2% | 17768 | 3.2% |
| Northeast | 1500 | 0.3% | 1500 | 0.3% |
| **Total** | $556863 | 100.0% | $557087 | 100.0% |

---

The following tables show the composition of the Company's investment portfolio by industry, at amortized cost and fair

value (with corresponding percentage of total portfolio investments) as of June 30, 2025 and December 31, 2024.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value**  | **Fair Value**  |
| Commercial Services & Supplies | $65915 | 9.0% | $67927 | 9.3% |
| Professional Services | 61975 | 8.5% | 62393 | 8.5% |
| Specialized Consumer Services | 54745 | 7.5% | 55065 | 7.5% |
| Transportation Infrastructure | 46015 | 6.3% | 46145 | 6.3% |
| Road & Rail | 41870 | 5.7% | 40090 | 5.5% |
| IT Services | 34014 | 4.7% | 34353 | 4.7% |
| Interactive Media & Services | 33166 | 4.5% | 33759 | 4.6% |
| Media | 34164 | 4.7% | 32301 | 4.4% |
| Diversified Financial Services | 30196 | 4.1% | 30500 | 4.2% |
| Business Support Services | 29536 | 4.0% | 29925 | 4.1% |
| Hotels, Restaurants & Leisure | 28298 | 3.9% | 28853 | 3.9% |
| Trading Companies & Distributors | 24759 | 3.4% | 24759 | 3.4% |
| Electric Utilities | 22320 | 3.1% | 22500 | 3.1% |
| Health Care Equipment & Services | 19804 | 2.7% | 19901 | 2.7% |
| Real Estate Management & Development | 18673 | 2.6% | 18667 | 2.5% |
| Application Software | 18386 | 2.5% | 18485 | 2.5% |
| Insurance | 18000 | 2.5% | 18000 | 2.5% |
| Diversified Telecommunication Services | 17846 | 2.4% | 17846 | 2.4% |
| Health Care Providers & Services | 17539 | 2.4% | 17677 | 2.4% |
| Construction & Engineering | 17350 | 2.4% | 17449 | 2.4% |
| Pharmaceuticals | 16221 | 2.2% | 16344 | 2.2% |
| Aerospace & Defense | 15020 | 2.1% | 15185 | 2.1% |
| Independent Power & Renewable | 13999 | 1.9% | 14000 | 1.9% |
| Water Utilities | 13048 | 1.8% | 13264 | 1.8% |
| Electrical Equipment | 12591 | 1.7% | 12607 | 1.7% |
| Gas Utilities | 10702 | 1.5% | 10730 | 1.5% |
| Food Service Distributor | 9877 | 1.4% | 9902 | 1.4% |
| Diversified Consumer Services | 2459 | 0.3% | 2459 | 0.3% |
| Food Products | 1115 | 0.2% | 1129 | 0.2% |
| **Total**  | $729603 | 100.0% | $732215 | 100.0% |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Commercial Services & Supplies | $66606 | 12.0% | $66901 | 12.1% |
| Professional Services | 57752 | 10.4% | 58135 | 10.4% |
| Specialized Consumer Services | 39897 | 7.2% | 40288 | 7.2% |
| Road & Rail | 41613 | 7.5% | 39900 | 7.2% |
| Interactive Media & Services | 34011 | 6.1% | 34293 | 6.2% |
| IT Services | 33807 | 6.1% | 33820 | 6.1% |
| Media | 34140 | 6.1% | 32725 | 5.9% |
| Diversified Financial Services | 28388 | 5.1% | 28492 | 5.1% |
| Transportation Infrastructure | 26252 | 4.7% | 26530 | 4.8% |
| Water Utilities | 23112 | 4.2% | 23454 | 4.2% |
| Health Care Equipment & Services | 19702 | 3.5% | 19949 | 3.6% |
| Application Software | 18288 | 3.3% | 18400 | 3.3% |
| Health Care Providers & Services | 17595 | 3.2% | 17768 | 3.2% |
| Construction & Engineering | 17427 | 3.1% | 17428 | 3.1% |
| Pharmaceuticals | 16278 | 2.9% | 16426 | 2.9% |
| Aerospace & Defense | 16069 | 2.9% | 16108 | 2.9% |
| Electric Utilities | 12286 | 2.2% | 12500 | 2.2% |
| Restaurants | 11714 | 2.1% | 11783 | 2.1% |
| Hotels, Restaurants & Leisure | 10688 | 1.9% | 10877 | 2.0% |
| Gas Utilities | 10737 | 1.9% | 10787 | 1.9% |
| Real Estate Management & Development | 9184 | 1.6% | 9182 | 1.6% |
| Independent Power & Renewable | 8388 | 1.5% | 8388 | 1.5% |
| Diversified Consumer Services | 2459 | 0.4% | 2459 | 0.4% |
| Food & Staples Retailing | 470 | 0.1% | 494 | 0.1% |
| **Total** | $556863 | 100.0% | $557087 | 100.0% |

---

**Note 4. Fair Value Measurement of Investments**

ASC Topic 820 defines fair value as the amount that would be received in the sale of an asset or paid in the transfer of a

liability in an orderly transaction between market participants at the measurement date. Where available, the Company uses

quoted market prices based on the last sales price on the measurement date.

In accordance with ASC Topic 820, the Company discloses the fair value of its investments in a hierarchy that prioritizes

the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based

upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest

priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). To the

extent that fair value is based on inputs that are less observable, the determination of fair value requires a significant

amount of management judgment.

The three-tier hierarchy of inputs is summarized below.

Level 1 - Quoted prices are available in active markets/exchanges for identical investments as of the reporting date.

Level 2 - Pricing inputs are observable inputs including, but not limited to, prices quoted for similar assets or liabilities

in active markets/exchanges or prices quoted for identical or similar assets or liabilities in markets that are not active,

and fair value is determined through the use of models or other valuation methodologies.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

Level 3 - Pricing inputs are unobservable for the investment and include activities where there is little, if any, market

activity for the investment. The inputs into determination of fair value require significant management judgment and

estimation.

The inputs used by management in estimating the fair value of Level 3 investments may include valuations and other

reporting provided by representatives of the portfolio companies, original transaction prices, recent transactions for

identical or similar instruments, and comparisons to fair values of comparable investments, and may include adjustments to

reflect illiquidity or non-transferability. The Adviser has policies with respect to its investments, which may assist the

Adviser in assessing the quality of information provided by, or on behalf of, each portfolio investment and in determining

whether such information continues to be provided by a reliable source or whether further investigation is necessary. Any

such investigation, as applicable, may or may not require the Adviser to forego its normal reliance on the value supplied

by, or on behalf of, such portfolio investment and to independently determine the fair value of the Company's interest in

such portfolio investments, consistent with the Adviser's valuation procedures.

The Company has engaged an independent third-party valuation provider, which performs valuation procedures to arrive at

estimated valuation ranges of the illiquid investments on a quarterly basis (other than immaterial investments, which are

internally valued quarterly unless otherwise deemed appropriate by the Valuation Committee, and subsequently

corroborated by an independent valuation firm on an annual basis). Investments that have been completed within the past

three months are fair valued approximating cost unless there has been a material event since the completion date. If there

has been a material event or material information that was not known as of the close of the transaction, the independent

third-party valuation provider provides an independent valuation range. The types of valuation methodologies employed by

the third-party valuation provider include discounted cash flow, recent financing and enterprise value valuation

methodologies. Pursuant to the Rule 2a-5 under the 1940 Act, the Board has chosen to designate the Adviser as the

Valuation Designee to perform fair value determinations relating to the value of the assets for which market quotations are

not readily available, subject to the Board's oversight.

The Company's investments and borrowings are subject to market risk. Market risk is the potential for changes in the value

due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the

investments and borrowings are traded.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing

in these securities. The availability of valuation techniques and observable inputs can vary from security to security and is

affected by a wide variety of factors including the type of security, whether the security is new and not yet established in

the marketplace, and other characteristics particular to the transaction. Inputs may include price information, volatility

statistics, specific and broad credit data, liquidity statistics and other factors.

The use of these valuation models requires significant estimation and judgment by the Adviser. While the Company

believes its valuation methods are appropriate, other market participants may value identical assets differently than the

Company at the measurement date. The methods used by the Company may produce a fair value calculation that may not

be indicative of net realizable value or reflective of future fair values. The Company may also have risk associated with its

concentration of investments in certain geographic regions and industries.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the

determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that

may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined.

Accordingly, the degree of judgment exercised by the Adviser in determining fair value is greatest for securities

categorized in Level 3.

The determination of what constitutes "observable" requires significant judgment by the Adviser. The Adviser considers

observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not

proprietary. Such observable data may fall into different levels of the fair value hierarchy. In such cases, for disclosure

purposes, the level in the fair value hierarchy where the fair value measurement falls (in its entirety) is based on the lowest

level input that is significant to the fair value measurement. The categorization of an investment within the hierarchy is

based upon the pricing transparency of the investment, and observability of prices and inputs may be reduced for many

investments. This condition could cause the investment to be reclassified to a lower level within the fair value hierarchy.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

The consolidated financial statements include portfolio investments at fair value of $732,215 and $557,087 as of June 30,

2025 and December 31, 2024, respectively. The fair value of the Company's portfolio investments was determined in good

faith by the Company's Board. Because of the inherent uncertainty of valuation, the determined values may differ

significantly from the values that would have been used had a liquid market existed for the investments as of June 30, 2025

and December 31, 2024.

The following tables present fair value measurements of investments, by major class according to the fair value hierarchy

as of June 30, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Fair Value Measurements**  | **Fair Value Measurements**  | **Fair Value Measurements**  | **Fair Value Measurements**  |
|  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| First lien senior secured loans | $— | $— | $679742 | $679742 |
| Equity |  |  | 45662 | 45662 |
| Subordinated debt |  |  | 3293 | 3293 |
| Preferred equity |  |  | 2018 | 2018 |
| Convertible note |  |  | 1500 | 1500 |
| Warrants |  |  |  |  |
| **Total Investments**  | $— | $— | $732215 | $732215 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| First lien senior secured loans | $— | $— | $540195 | $540195 |
| Equity |  |  | 12028 | 12028 |
| Subordinated debt |  |  | 1712 | 1712 |
| Preferred equity |  |  | 1652 | 1652 |
| Convertible note |  |  | 1500 | 1500 |
| Warrants |  |  |  |  |
| **Total Investments**  | $— | $— | $557087 | $557087 |

---

The carrying value of the Credit Facility and SBA-guaranteed debentures approximates fair value as of June 30, 2025 and

December 31, 2024, and would be categorized as Level 3 of the fair value hierarchy if determined as of the reporting date.

The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs

for the six months endedJune 30, 2025 and June 30, 2024.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the six months ended** <br>**June 30, 2025** | **For the six months ended** <br>**June 30, 2025** | **For the six months ended** <br>**June 30, 2025** | **For the six months ended** <br>**June 30, 2025** | **For the six months ended** <br>**June 30, 2025** | **For the six months ended** <br>**June 30, 2025** | **For the six months ended** <br>**June 30, 2025** |
|  | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** |
|  | **First Lien** <br>**Senior** <br>**Secured** <br>**Loans**<br>| **Subordinated** <br>**Debt**<br>| **Equity** | **Preferred** <br>**Equity**<br>| **Convertible**<br>**Note**<br>| **Warrants** | **Total** <br>**Investments**<br>|
| Balance as of December 31, 2024 | $540195 | $1712 | $12028 | $1652 | $1500 | $— | $557087 |
| Purchases of investments and other <br>adjustments to cost<br>| 252190 | 1555 | 32025 |  |  |  | 285770 |
| Proceeds from sales and repayments of <br>investments<br>| (113697) |  | (547) |  |  |  | (114244) |
| Net realized gain (loss) | 82 |  |  |  |  |  | 82 |
| Net accretion of discount on <br>investments<br>| 1132 |  |  |  |  |  | 1132 |
| Net change in unrealized gain (loss) on <br>investments<br>| (160) | 26 | 2156 | 366 |  |  | 2388 |
| **Balance as of June 30, 2025** | $679742 | $3293 | $45662 | $2018 | $1500 | $— | $732215 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the six months ended** <br>**June 30, 2024** | **For the six months ended** <br>**June 30, 2024** | **For the six months ended** <br>**June 30, 2024** | **For the six months ended** <br>**June 30, 2024** | **For the six months ended** <br>**June 30, 2024** | **For the six months ended** <br>**June 30, 2024** |
|  | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** |
|  | **First Lien Senior** <br>**Secured Loans**<br>| **Subordinated** <br>**Debt**<br>| **Equity** | **Preferred** <br>**Equity**<br>| **Warrants** | **Total** <br>**Investments**<br>|
| Balance as of December 31, 2023 | $265287 | $1753 | $4901 | $1652 | $— | $273593 |
| Purchases of investments and other <br>adjustments to cost<br>| 156156 | 96 |  |  |  | 156252 |
| Proceeds from sales and repayments <br>of investments<br>| (8988) |  |  |  |  | (8988) |
| Net realized gain (loss) |  |  |  |  |  |  |
| Net accretion of discount on <br>investments<br>| 679 |  |  |  |  | 679 |
| Net change in unrealized gain (loss) <br>on investments<br>| 598 | 41 | 99 | 91 |  | 829 |
| **Balance as of June 30, 2024** | $413732 | $1890 | $5000 | $1743 | $— | $422365 |

---

For the six months endedJune 30, 2025, the net change in unrealized gain (loss) on investments attributable to Level 3

investments still held on June 30, 2025 was $2,388 as shown on the Consolidated Statements of Operations. For the six

months endedJune 30, 2024, the net change in unrealized gain (loss) on investments attributable to Level 3 investments

still held on June 30, 2024 was $829 as shown on the Consolidated Statements of Operations.

Purchases of investments and other adjustments to costs include purchases of new investments at cost, accretion/

amortization of income from discount/premium on debt securities and PIK.

Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of Level 3 as of the

beginning of the period which the reclassifications occur. There were no transfers between Levels 1, 2 and 3 during the six

months endedJune 30, 2025 and June 30, 2024.

**Significant Unobservable Inputs**

ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the

valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. The table below is not intended to be

all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the

Company.

The tables below summarize the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value

hierarchy as of June 30, 2025 and December 31, 2024.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | **Range** | **Range** |
|  | <br>**Fair Value, as of** <br>**June 30, 2025**<br>| <br>**Valuation** <br>**Technique**<br>| <br>**Unobservable**<br>**Input**<br>| <br>**Weighted**<br>**Average Mean**<br>| **Minimum** | **Maximum** |
| Assets: |  |  |  |  |  |  |
| First lien senior secured loans | $517024 | Discounted Cash <br>Flow<br>| Discount Rate | 10.6% | 8.2% | 20.5% |
| First lien senior secured loans | 40090 | Waterfall Analysis | EV/EBITDA | 6.3x | 5.5x | 7.0x |
| First lien senior secured loans | 122628 | Amortized Cost | Cost | N/A | N/A | N/A |
| Equity | 38806 | Amortized Cost | Cost | N/A | N/A | N/A |
| Equity | 6856 | Waterfall Analysis | EV/EBITDA | 5.8x | 5.5x | 6.0x |
| Subordinated debt | 1808 | Discounted Cash <br>Flow<br>| Discount Rate | 14.8% | 14.0% | 15.5% |
| Subordinated debt | 1485 | Amortized Cost | Cost | N/A | N/A | N/A |
| Preferred equity | 2018 | Waterfall Analysis | EV/EBITDA | 7.0x | 6.8x | 7.3x |
| Convertible note | 1500 | Amortized Cost | Cost | N/A | N/A | N/A |
| Warrants |  | Waterfall Analysis | EV/EBITDA | 7.3x | 5.5x | 8.5x |
| **Total Level 3 Assets** | $732215 |  |  |  |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | **Range** | **Range** |
|  | <br>**Fair Value, as of** <br>**December 31, 2024**<br>| <br>**Valuation** <br>**Technique**<br>| <br>**Unobservable**<br>**Input**<br>| <br>**Weighted**<br>**Average Mean**<br>| **Minimum** | **Maximum** |
| Assets: |  |  |  |  |  |  |
| First lien senior secured loans | $404750 | Discounted Cash <br>Flow<br>| Discount Rate | 11.2% | 8.4% | 18.9% |
| First lien senior secured loans | 39900 | Comparable <br>Multiples<br>| EV/EBITDA | 6.3x | 5.5x | 7.0x |
| First lien senior secured loans | 95545 | Amortized Cost | Cost | N/A | N/A | N/A |
| Subordinated debt | 1712 | Discounted Cash <br>Flow<br>| Discount Rate | 14.8% | 14.0% | 15.5% |
| Equity | 5000 | Comparable <br>Multiples<br>| EV/EBITDA | 6.3x | 6.0x | 6.5x |
| Equity | 7028 | Amortized Cost | Cost | N/A | N/A | N/A |
| Preferred equity | 1652 | Comparable <br>Multiples<br>| EV/EBITDA | 8.5x | 8.3x | 8.8x |
| Convertible note | 1500 | Amortized Cost | Cost | N/A | N/A | N/A |
| Warrants |  | Comparable <br>Multiples<br>| EV/EBITDA | 7.0x | 5.5x | 8.0x |
| **Total Level 3 Assets** | $557087 |  |  |  |  |  |

---

The significant unobservable input used in the income approach of fair value measurement of the Company's investments

is the discount rate used to discount the estimated future cash flows received from the underlying investment, which

include both future principal and interest payments. Increases (decreases) in the discount rate would result in a decrease

(increase) in the fair value estimate of the investment. Included in the consideration and selection of discount rates are the

following factors: risk of default, rating of the investment and comparable investments, and call provisions.

The significant unobservable inputs used in the market approach of fair value measurement of the Company's investments

are the market multiples of EBITDA or revenue of the comparable guideline public companies. The Company selects a

population of public companies for each investment with similar operations and attributes of the portfolio company. Using

these guideline public company data, a range of multiples of enterprise value to EBITDA or revenue is calculated. The

Company selects percentages from the range of multiples for purposes of determining the portfolio company's estimated

enterprise value based on such multiple and generally the latest twelve months EBITDA or revenue of the portfolio

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

company (or other meaningful measure). Increases (decreases) in the multiple will result in an increase (decrease) in

enterprise value, resulting in an increase (decrease) in the fair value estimate of the investment.

**Note 5. Debt**

As a BDC, we are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock

senior to shares of our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150%, subject to

receipt of certain approvals and compliance with certain disclosure requirements, immediately after each such issuance.

Section 61(a) of the 1940 Act reduces the asset coverage requirements applicable to BDCs from 200% to 150% so long as

the BDC meets certain disclosure requirements and obtains certain approvals. In April 2021, our Board and initial

stockholder approved the reduced asset coverage ratio. The reduced asset coverage requirements permit us to increase the

maximum amount of leverage that we are permitted to incur by reducing the asset coverage requirements applicable to us

from 200% to 150%. As defined in the 1940 Act, asset coverage of 150% means that for every $100 of net assets we hold,

we may raise $200 from borrowing and issuing senior securities as compared to $100 from borrowing and issuing senior

securities for every $100 of net assets under a 200% asset coverage requirement. In addition, while any senior securities

remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such

securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. As of

June 30, 2025 and December 31, 2024, the Company's asset coverage ratio based on the aggregate amount outstanding of

senior securities was 242.7% and 269.2%.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the

Company's total debt for the three and six months endedJune 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $6854 | $1469 | $12453 | $2190 |
| Non-usage fee <sup>(1)</sup> | (3) | 10 | 44 | 26 |
| Amortization of deferred financing costs | 403 | 146 | 772 | 331 |
| Weighted average stated interest rate | 6.06% | 7.17% | 6.08% | 6.93% |
| Weighted average outstanding balance | $453411 | $82486 | $412810 | $63612 |

---

(1)Non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the Subscription

Facility.

**Credit Facilities**

*ING Credit Facility*

On June 18, 2024, the Company entered into a Senior Secured Revolving Credit Agreement (as amended, restated,

supplemented, or otherwise modified from time to time, the "ING Credit Facility") with ING Capital, LLC, as

Administrative Agent, Lead Arranger, Bookrunner and Sustainability Structuring Agent.

On September 20, 2024, the Company entered into Amendment No. 1 to the Senior Secured Revolving Credit Agreement

(the "First Amendment"), which amends the ING Credit Facility. The parties to the First Amendment include the

Company, the lenders party thereto, Subsidiary Guarantors party thereto and ING Capital LLC, as Administrative Agent.

The First Amendment provides for, among other things, an upsize in the total commitments from lenders under the credit

facility from $75 million to $150 million.

On December 12, 2024, the Company entered into that certain Lender Joinder Agreement (the "First Lender Joinder

Agreement"), pursuant to which, through the accordion feature in the ING Credit Facility, the aggregate commitments

under the ING Credit Facility increased from $150 million to $175 million. The parties to the First Lender Joinder

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

Agreement include the Company, BankUnited, N.A., as additional lender, the Subsidiary Guarantors party thereto and the

Administrative Agent.

On December 20, 2024, the Company entered into that certain Lender Joinder Agreement (the "Second Lender Joinder

Agreement"), pursuant to which, through the accordion feature in the ING Credit Facility, the aggregate commitments

under the ING Credit Facility increased from $175 million to $225 million. The parties to the Second Lender Joinder

Agreement include the Company, Customers Bank, as additional lender, the Subsidiary Guarantors party thereto and the

Administrative Agent.

On March 20, 2025, the Company entered into that certain Lender Joinder Agreement (the "Third Joinder Agreement"),

pursuant to which, through the accordion feature in the ING Credit Facility, the aggregate commitments under the ING

Credit Facility increased from $225 million to $250 million. The parties to the Third Lender Joinder Agreement include the

Company, Customers Bank, as additional lender, the Subsidiary Guarantors party thereto and the Administrative Agent.

On April 24, 2025, the Company entered into Amendment No. 2 to the Senior Secured Revolving Credit Agreement (the

"Second Amendment"), which amends the ING Credit Facility. The parties to the Second Amendment include the

Company, the lenders party thereto, Subsidiary Guarantors party thereto and ING Capital LLC, as Administrative Agent.

The Second Amendment provides for, among other things,an increase of the accordion provision to permit increases to a

total facility amount of up to $275 million and permit the Company to do up to $30 million of financing under repurchase

agreements.

On April 24, 2025 the Company entered into a waiver letter permitting the Company to enter into a repurchase agreement

with Midcap Financial Trust dated as of April 17, 2025.

On May 30, 2025, the Company entered intothat certain Lender Joinder Agreement (the "Fourth Joinder Agreement"),

pursuant to which, through the accordion feature in the ING Credit Facility, the aggregate commitments under the ING

Credit Facility increased from $250 million to $275 million. The parties to the Fourth Lender Joinder Agreement include

the Company, City National Bank, as additional lender, the Subsidiary Guarantors party thereto and the Administrative

Agent.

The ING Credit Facility is guaranteed by certain subsidiaries of the Company in existence as of the closing date of the ING

Credit Facility, and will be guaranteed by certain subsidiaries of the Company that are formed or acquired by the Company

in the future (collectively, the "Guarantors"). Proceeds of the ING Credit Facility may be used for general corporate

purposes, including the funding of portfolio investments.

The ING Credit Facility allows the Company to borrow up to $275 million, subject to certain restrictions, including

availability under a borrowing base, which is based upon unused capital commitments made by investors in the Company

and the value of eligible portfolio investments. The amount of permissible borrowings under the ING Credit Facility may

be increased through an uncommitted accordion feature through which existing and new lenders may, at their option, agree

to provide additional financing up to an aggregate of $300 million. The ING Credit Facility is secured by a perfected first-

priority interest in the unused commitments of the Company's investors and substantially all of the eligible portfolio

investments held by the Company and each Guarantor, subject to certain exceptions.

The availability period with respect to the revolving credit facility under the ING Credit Facility will terminate on June 19,

2028 ("Commitment Termination Date") and the ING Credit Facility will mature on June 18, 2029 ("Maturity Date").

During the period from the Commitment Termination Date to the Maturity Date, the Company will be obligated to make

mandatory prepayments under the ING Credit Facility out of the proceeds of certain asset sales and other recovery events.

The Company may borrow amounts in U.S. dollars or certain other permitted currencies. Amounts drawn under the ING

Credit Facility in U.S. dollars will bear interest at either (i) term SOFR plus margin of 2.70% per annum, or (ii) the

alternate base rate plus margin of 1.70% per annum. In each case, the annual interest rate will be adjustable based on a

sustainability linked loan pricing structure that directly references our 2030 Goals, with ING acting as the sole

Sustainability Structuring Agent. The Company may elect either the term SOFR or alternate base rate at the time of

drawdown, and loans denominated in U.S. dollars may be converted from one rate to another at any time at the Company's

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

option, subject to certain conditions. Amounts drawn under the ING Credit Facility in other permitted currencies will bear

interest at the relevant rate specified therein plus an applicable margin (including any applicable credit spread adjustment).

The ING Credit Facility includes customary affirmative and negative covenants, including certain limitations on the

incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit

facilities of this nature.

As of June 30, 2025 and December 31, 2024, the Company had $254.5 million and $208.2 million, respectively, in

outstanding borrowings from the ING Facility.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the

ING Facility for the three and six months endedJune 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $4327 | $215 | $7525 | $215 |
| Non-usage fee <sup>(1)</sup> | (3) |  | 44 |  |
| Amortization of financing costs | 158 | 9 | 296 | 9 |
| Weighted average stated interest rate | 6.95% | 8.08% | 7.08% | 8.08% |
| Weighted average outstanding balance | $249702 | $10714 | $214452 | $5357 |

---

(1)Non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the ING Credit

Facility.

*Subscription Facility*

On February 2, 2022, the Company entered into a subscription-based credit agreement with Sumitomo Mitsui Banking

Corporation, which was amended on June 28, 2022, December 21, 2022, and February 1, 2024 (and as may be further

amended, modified or supplemented, the "Subscription Facility"). The Subscription Facility allowed the Company to

borrow up to $38.4 million, subject to certain restrictions, including availability under a borrowing base that was based

upon unused capital commitments made by investors in the Company. The amount of permissible borrowings under the

Subscription Facility could be increased to up to $1 billion with the consent of the lenders. The Subscription Facility

matured on May 2, 2024 and bore interest at an annual rate of: (i) with respect to reference rate loans, a reference rate for

the period plus a margin equal to 2.50% (the "Applicable Margin") and (ii) with respect to alternative rate loans, the

greatest of (a) the administrative agent's prime rate, (b) Term SOFR with a one-month term plus the Applicable Margin and

(c) the federal funds rate plus 0.50%. Subject to certain exceptions, the Subscription Facility is secured by a first lien

security interest in the Company's unfunded investor equity capital commitments. The Subscription Facility included

customary covenants, certain limitations on the incurrence of additional indebtedness and liens, and other maintenance

covenants, as well as usual and customary events of default for credit facilities of this nature. On May 2, 2024, the

Subscription Facility and all obligations thereunder were terminated.

As of June 30, 2025 and December 31, 2024, the Company had $0.0 million and $0.0 million, respectively, in outstanding

borrowings from the Subscription Facility.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the

Subscription Facility for the three and six months endedJune 30, 2025 and June 30, 2024:

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $— | $253 | $— | $492 |
| Non-usage fee <sup>(1)</sup> |  | 10 |  | 26 |
| Amortization of financing costs |  | 75 |  | 218 |
| Weighted average stated interest rate | —% | 8.07% | —% | 7.83% |
| Weighted average outstanding balance | $— | $12659 | $— | $12642 |

---

(1)Non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the Subscription

Facility.

**SBA-Guaranteed Debentures**

LS SBIC LP and LS SSBIC LP are able to borrow funds from the SBA against their regulatory capital (which

approximates equity capital in LS SBIC LP and LS SSBIC LP) that is paid in and is subject to customary regulatory

requirements, including, but not limited to, periodic examination by the SBA. As of June 30, 2025 and December 31, 2024,

the Company funded LS SBIC LP and LS SSBIC LP with an aggregate total of $115.0 million and $110.0 million,

respectively, of regulatory capital, and have $230.0 million and $192.5 million, respectively, in SBA-guaranteed

debentures outstanding. SBA debentures are non-recourse to us, have a 10-year maturity, and may be prepaid at any time

without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a

market-driven spread over 10-year U.S. Treasury Notes. Current SBA regulations limit the amount that each of LS SBIC

LP and LS SSBIC LP may borrow to a maximum of $175.0 million, which is up to twice its potential regulatory capital.

The SBA-guaranteed debentures incurred an upfront commitment fee of 1.00% on the total commitment amount and a

2.435% issuance discount on drawdowns, which are amortized over the life of the SBA-guaranteed debentures. In addition,

an annual fee is charged on the SBA-guaranteed debentures which are amortized over the period.

The following table summarizes the Company's SBA-guaranteed debentures as of June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Issuance Date** | **Maturity Date** | **Debenture Amount** | **Interest Rate** | **SBA Annual Charge** |
| September 15, 2023 | March 1, 2034 | $31000 | 5.04% | 0.047% |
| March 15, 2024 | September 1, 2034 | $5960 | 4.38% | 0.047% |
| June 14, 2024 | September 1, 2034 | $45540 | 4.38% | 0.129% |
| September 16, 2024 | March 1, 2035 | $82505 | 4.96% | 0.129% |
| December 12, 2024 | March 1, 2035 | $27500 | 4.96% | 0.347% |
| March 28, 2025 | September 1, 2035 | $9995 | 4.76% | 0.347% |
| June 27, 2025 | September 1, 2035 | $27500 | 4.86% | 0.347% |

---

The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed

debentures for the three and six months endedJune 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $2526 | $611 | $4928 | $1093 |
| Non-usage fee |  |  |  |  |
| Amortization of financing costs | 246 | 62 | 476 | 104 |
| Weighted average stated interest rate | 4.98% | 5.40% | 5.01% | 5.67% |
| Weighted average outstanding balance | $203709 | $45467 | $198359 | $38790 |

---

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Repurchase Obligations**

In order to finance certain investment transactions, the Company may, from time to time, enter into repurchase agreements

with Macquarie US Trading LLC ("Macquarie"), whereby the Company sells to Macquarie an investment that it holds and

concurrently enters into an agreement to repurchase the same investment (any such obligation, a "Repurchase Obligation")

at an agreed-upon price at a future date, not to exceed 90-days from the date it was sold.

The Company entered into two repurchase agreements on May 1, 2024 which were collateralized by the Company's term

loans to each of Salt Dental Collective (the "Salt Repurchase Obligation") and Med Learning Group, LLC (the "MLG

Repurchase Obligation" and together with the Salt Repurchase Obligation, the "May 2024 Repurchase Obligations").

Interest under each of the May 2024 Repurchase Obligations was calculated as (a) the product of the funded amount of the

loan and (b) the product of (i) the number of days the loan is outstanding (subject to number of minimum days per the

agreement) and (ii) daily fee rate. The Company maintained effective control over the security because it is entitled and

obligated to repurchase the security before its maturity. Therefore, the repurchase agreement was treated as a secured

borrowing and not a sale. On July 30, 2024 the Company repurchased its obligation under the MLG Repurchase

Obligation.

As of June 30, 2025 and December 31, 2024, the Company had $0.0 million and $0.0 million, respectively, in outstanding

borrowings from the Repurchase Obligations.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the

Repurchase Obligations for the three and six months endedJune 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $— | $390 | $— | $390 |
| Non-usage fee |  |  |  |  |
| Amortization of financing costs |  |  |  |  |
| Weighted average stated interest rate | —% | 11.50% | —% | 11.50% |
| Weighted average outstanding balance <sup>(1)</sup> | $— | $13645 | $— | $6822 |

---

The facilities of the Company consist of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Aggregate**<br>**Principal** <br>**Amount** <br>**Available**<br>| **Principal** <br>**Amount** <br>**Outstanding**<br>| **Unused** <br>**Portion**<br>| **Aggregate**<br>**Principal** <br>**Amount** <br>**Available**<br>| **Principal** <br>**Amount** <br>**Outstanding**<br>| **Unused** <br>**Portion**<br>|
| Secured borrowings | $275000 | $254482 | $20518 | $225000 | $208232 | $16768 |
| SBA-Guaranteed <br>Debentures<br>| 230000 | 230000 |  | 192505 | 192505 |  |
| **Total** | $505000 | $484482 | $20518 | $417505 | $400737 | $16768 |

---

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Note 6. Related Party Agreements and Transactions**

**Investment Advisory Agreement**

Under the Investment Advisory Agreement, the Adviser manages the day-to-day operations of, and provides investment

advisory services to the Company. The Board approved the Investment Advisory Agreement on April 26 2021 and most

recently approved its renewal on May 8, 2025. The Adviser is a registered investment adviser with the SEC. The Adviser

receives fees for providing services, consisting of two components, a base management fee and an incentive fee.

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

The base management fee ("Management Fee") is payable quarterly in arrears beginning in the period during the Initial

Drawdown at an annual rate of (i) prior to a Liquidity Event, 0.75%, and (ii) following a Liquidity Event, 1.0%, in each

case of the average value of our gross assets (gross assets equal the total assets of the Company as set forth on the

Company's Consolidated Statements of Assets and Liabilities) at the end of the two most recently completed calendar

quarters. No Management Fee is charged on committed but undrawn capital commitments.

We define a "Liquidity Event" as the earliest to occur of: (1) a quotation or listing of our common stock on a national

securities exchange, including an initial public offering or (2) a Sale Transaction. A "Sale Transaction" means (a) the sale

of all or substantially all of our capital stock or assets to, or another liquidity event with, another entity or (b) a transaction

or series of transactions, including by way of merger, consolidation, recapitalization, reorganization, or sale of stock in

each case for consideration of either cash and/or publicly listed securities of the acquirer. Potential acquirers could include

entities that are not BDCs that are advised by the Adviser or its affiliates.

For the three and six months endedJune 30, 2025, the Company incurred Management Fee expense of $1,585 and $3,063,

respectively. For the three and six months endedJune 30, 2024, the Company incurred Management Fee expense of $872

and $1,614, respectively. As of June 30, 2025 and December 31, 2024, $1,585 and $1,375, respectively, remained payable

as shown on the Consolidated Statements of Assets and Liabilities.

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

The Company also pays the Adviser an incentive fee consisting of two parts: (i) an incentive fee based on pre-incentive fee

net investment income (the "Income-Based Fee"), and (ii) the capital gains component of the incentive fee (the "Capital

Gains Fee") of which is described in more detail below.

The Income-Based Fee, is based on Pre-Incentive Fee Net Investment Income Returns and is determined and payable in

arrears as of the end of each calendar year. "Pre-Incentive Fee Net Investment Income Returns" means, as the context

requires, either the dollar value of, or percentage rate of return on the value of our net assets at the end of the immediately

preceding quarter from, interest income, dividend income and any other income (including any other fees (other than fees

for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other

fees that we receive from portfolio companies) accrued during the calendar quarter, minus our operating expenses accrued

for the quarter (including the Management Fee, expenses payable under the Administration Agreement), and any interest

expense or fees on any credit facilities or outstanding debt and distributions paid on any issued and outstanding preferred

shares, but excluding the incentive fee.

Pre-Incentive Fee Net Investment Income Returns include, in the case of investments with a deferred interest feature (such

as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that

we have not yet received in cash. Pre-Incentive Net Investment Income Returns do not include any realized capital gains,

realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income Returns,

expressed as a rate of return on the value of our net assets at the end of the immediately preceding quarter, is compared to a

"hurdle rate" of return of 1.25% per quarter (5.0% annualized).

Prior to a Liquidity Event, we pay the Adviser the Income-Based Fee as follows:

• no incentive fee based on Pre-Incentive Fee Net Investment Income Returns in any calendar quarter in which our

Pre-Incentive Fee Net Investment Income Returns do not exceed the hurdle rate of 1.25%;

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

• 100% of the dollar amount of our Pre-Incentive Fee Net Investment Income Returns with respect to that portion of

such Pre-Incentive Fee Net Investment Income Returns, if any, that exceeds the hurdle rate but is less than a rate

of return of 1.47% (5.88% annualized). We refer to this portion of our Pre-Incentive Fee Net Investment Income

Returns (which exceeds the hurdle rate but is less than 1.47%) as the "catch-up." The "catch-up" is meant to

provide the Adviser with approximately 15% of our Pre-Incentive Fee Net Investment Income Returns as if a

hurdle rate did not apply if this net investment income exceeds 1.47% in any calendar quarter; and

• 15% of the dollar amount of our Pre-Incentive Fee Net Investment Income Returns, if any, that exceed a rate of

return of 1.47% (5.88% annualized). This reflects that once the hurdle rate is reached and the catch-up is achieved,

15% of all Pre-Incentive Fee Net Investment Income Returns thereafter are allocated to the Adviser.

Following a Liquidity Event, we will pay the Adviser the Income-Based Fee as follows:

• no incentive fee based on Pre-Incentive Fee Net Investment Income Returns in any calendar quarter in which our

Pre-Incentive Fee Net Investment Income Returns do not exceed the hurdle rate of 1.25%;

• 100% of the dollar amount of our Pre-Incentive Fee Net Investment Income Returns with respect to that portion of

such Pre-Incentive Fee Net Investment Income Returns, if any, that exceeds the hurdle rate but is less than a rate

of return of 1.47% (5.88% annualized). The "catch-up" is meant to provide the Adviser with approximately 17.5%

of our Pre-Incentive Fee Net Investment Income Returns as if a hurdle rate did not apply if this net investment

income exceeds 1.47% in any calendar quarter; and

• 17.5% of the dollar amount of our Pre-Incentive Fee Net Investment Income Returns, if any, that exceed a rate of

return of 1.52% (6.06% annualized). This reflects that once the hurdle rate is reached and the catch-up is achieved,

17.5% of all Pre-Incentive Fee Net Investment Income Returns thereafter are allocated to the Adviser.

For the three and six months endedJune 30, 2025, the Company incurred Income-Based Fee of $1,620 and $3,134,

respectively. For the three and six months endedJune 30, 2024, the Company incurred Income-Based Fee of $1,213 and

$2,382, respectively. As of June 30, 2025 and December 31, 2024, $1,620 and $1,578, respectively, remained payable as

shown on the Consolidated Statements of Assets and Liabilities.

The second part of the incentive fee, the Capital Gains Fee, is determined and payable in arrears as of the end of each

calendar year (or at the time of a Liquidity Event). The Capital Gains Fee is equal to 15% of (1) realized capital gains less

(2) realized capital losses, less unrealized capital losses on a cumulative basis from inception through the day before the

Liquidity Event, less the aggregate amount of any previously paid Capital Gains Fee.

Prior to a Liquidity Event, the Capital Gains Fee equals:

• 15% of cumulative realized capital gains less all realized capital losses and unrealized capital depreciation on a

cumulative basis from inception through the end of such calendar year (or upon a Liquidity Event), less the

aggregate amount of any previously paid Capital Gains Fee as calculated in accordance with GAAP.

Following a Liquidity Event, the amount payable equals:

• 17.5% of cumulative realized capital gains from inception through the end of such calendar year, computed net of

all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of

any previously paid Capital Gains Fee as calculated in accordance with GAAP.

If a Liquidity Event occurs on a date other than the first day of a fiscal year, the Capital Gains Fee will be calculated as of

the day before the Liquidity Event, with such Capital Gains Fee paid to the Adviser annually following the end of the fiscal

year in which the Liquidity Event occurred. Solely for purposes of calculating the Capital Gains Fee after a Liquidity

Event, the Company will be deemed to have previously paid a Capital Gains Fee prior to a Liquidity Event equal to the

product obtained by multiplying (a) the actual aggregate amount of previously paid Capital Gains Fee for all periods prior

to a Liquidity Event by (b) the percentage obtained by dividing (x) 17.5% by (y) 15%.

Each year, the Capital Gains Fee is calculated net of the aggregate amount of any previously paid Capital Gains Fee for all

prior periods. We will accrue, but will not pay, a Capital Gains Fee with respect to unrealized appreciation because a

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

Capital Gains Fee would be owed to the Adviser if we were to sell the relevant investment and realize a capital gain. In no

event will the Capital Gains Fee payable pursuant to the Investment Advisory Agreement exceed the amount permitted by

the Investment Advisers Act of 1940, as amended (the "Advisers Act"), including Section 205 thereof.

For the purpose of computing the Capital Gains Fee, the calculation methodology looks through derivative financial

instruments or swaps as if we owned the reference assets directly.

For the three and six months endedJune 30, 2025 and June 30, 2024, there were no Capital Gains Fees incurred.

**Administration Agreement**

Pursuant to the administration agreement between the Company and LS Administration, LLC (the "Administration

Agreement"), LS Administration, LLC (the "Administrator") furnishes the Company with office space, office services, and

equipment. Under the Administration Agreement, our Administrator performs or oversees the performance of our required

administrative services, which include providing assistance in accounting, legal, compliance, operations, technology,

internal audit, and investor relations, and loan agency services (including any third party service providers related to the

foregoing) and being responsible for the financial records that we are required to maintain and preparing reports to our

stockholders and reports filed with the SEC. In addition, our Administrator assists us in determining and publishing our net

asset value, overseeing the preparation and filing of our tax returns and the printing and disseminating reports to our

stockholders, assessing our internal controls under the Sarbanes-Oxley Act, and generally overseeing the payment of our

expenses and the performance of administrative and professional services rendered to us by others.

Payments under the Administration Agreement are equal to an amount that reimburses our Administrator for its costs and

expenses. Such payments include the Company's allocable portion of (i) the expenses incurred by our Administrator in

performing its obligations under the Administration Agreement, (ii) the compensation paid to our Chief Compliance

Officer and Chief Financial Officer and their respective staffs, and (iii) the cost of providing managerial assistance upon

request to portfolio companies. The Administration Agreement may be terminated by either party without penalty upon 60

days' written notice to the other party. Additionally, we ultimately bear the costs of any sub-administration agreements that

our Administrator may enter into. Our Administrator reserves the right to waive all or part of any reimbursements due from

us at its sole discretion.

The Administration Agreement provides that, absent willful misfeasance, bad faith or gross negligence in the performance

of its duties or by reason of the reckless disregard of its duties and obligations, our Administrator and its officers,

managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with it will

be entitled to indemnification from us for any damages, liabilities, costs, and expenses (including reasonable attorneys' fees

and amounts reasonably paid in settlement) arising from the rendering of our Administrator's services under the

Administration Agreement or otherwise as administrator for us.

For the three and six months endedJune 30, 2025, the Company incurred $450 and $900, respectively, in fees under the

Administrative Agreement. For the three and six months endedJune 30, 2024, the Company incurred $500 and $1,006,

respectively, in fees under the Administrative Agreement. These fees are included in administrative service fees in the

accompanying Consolidated Statements of Operations. As of June 30, 2025 and December 31, 2024, $0 and $0,

respectively, were unpaid and included in administrative services fee payable in the accompanying Consolidated

Statements of Assets and Liabilities. No administrative services fee was charged to the Company prior to the Company's

commencement of operations.

Additionally, pursuant to a sub-administration agreement with SS&C Technologies, Inc. ("SS&C"), SS&C performs

certain of the Company's required administrative services, which include providing assistance in accounting, legal,

compliance, operations, investor relations and technology, being responsible for the financial records that the Company is

required to maintain and preparing reports to the Company's stockholders and reports filed with the SEC. SS&C is also

reimbursed for certain expenses it incurs on our behalf.

Our Administrator and Adviser have entered into staffing agreements with affiliates of Lafayette Square pursuant to which

such Lafayette Square affiliates agree to provide our Administrator and Adviser with access to certain legal, operations,

financial, compliance, accounting, internal audit (in their role of performing our Sarbanes-Oxley Act internal control

assessment), clerical and administrative personnel.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Affiliated transactions**

The Adviser's investment allocation policy seeks to ensure allocation of investment opportunities on a fair and equitable

basis over time between the Company and other funds or investment vehicles managed by the Adviser or its affiliates. It is

expected that the Company may have overlapping investment strategies with such affiliated funds and/or investment

vehicles, but there are prohibitions under the 1940 Act from participating in certain transactions with such affiliates without

prior approval of the directors who are not interested persons, and in some cases, the prior approval of the SEC. As a result,

the Company, the Adviser and certain of their affiliates applied for, and have been granted, exemptive relief by the SEC for

the Company to co-invest with other funds or investment vehicles managed by the Adviser or certain of its affiliates, in a

manner consistent with the requirements of the Company's organizational documents and investment strategy as well as

applicable laws and regulations and the Adviser's fiduciary duties. As a result of such exemptive relief, there could be

significant overlap in the Company's investment portfolio and the investment portfolios of such other affiliated entities that

avail themselves of such exemptive relief and that have an investment objective similar to the Company. In addition, any

transaction fees (including break-up or commitment fees, but excluding transaction fees contemplated by Section 17(e) or

57(k) of the 1940 Act, as applicable, which are expected to be retained by the Adviser, to the extent permitted by applicable

law) received in connection with a co-investment transaction among the Company and its affiliated entities will be

distributed to the participating entities (including the Company) on a pro rata basis based on the amounts they invested or

committed, as the case may be, in such transaction.We and the Adviser have applied for a new exemptive relief order

which, if granted, would supersede the existing co-investment exemptive relief with respect to negotiated co-investment

transactions alongside the Adviser's affiliated private and SEC-registered funds. There can be no assurance that we will

obtain such new exemptive relief from the SEC.

**Due to/from Affiliate**

The Administrator pays for certain unaffiliated third-party expenses incurred by the Company. These expenses are not

marked-up and represent the same amount the Company would have paid had the Company paid the expenses directly.

After the commencement of operations these expenses are reimbursed on an ongoing basis. As of June 30, 2025 and

December 31, 2024, $744 and $221, respectively, were included in the Due to Affiliate line item in the Consolidated

Statements of Assets and Liabilities for reimbursable expenses paid by the Administrator on behalf of the Company. As of

June 30, 2025 and December 31, 2024, $438 and $260, respectively, were included in the Due from Affiliate line item in

the Consolidated Statements of Assets and Liabilities for reimbursable expenses due from the Administrator on behalf of

the Company.

**Expense Support and Conditional Reimbursement Agreement**

On December 30, 2021, the Company entered into an expense support and conditional reimbursement agreement (the

"Expense Support Agreement") with the Adviser. The Adviser may elect to pay certain Company expenses on the

Company's behalf (each, an "Expense Payment"), provided that no portion of the payment will be used to pay any interest

expense or shareholder servicing and/or distribution fees of the Company. Any Expense Payment that the Adviser has

committed to pay must be paid by the Adviser to the Company in any combination of cash or other immediately available

funds no later than 45 days after such commitment was made in writing, and/or offset against amounts due from the

Company to the Adviser or its affiliates.

Following any calendar quarter in which Available Operating Funds (as defined below) exceed the cumulative distributions

accrued to the Company's shareholders based on distributions declared with respect to record dates occurring in such

calendar quarter (the amount of such excess being hereinafter referred to as "Excess Operating Funds"), the Company will

pay such Excess Operating Funds, or a portion thereof, to the Adviser until such time as all Expense Payments made by the

Adviser to the Company within three years prior to the last business day of such calendar quarter have been reimbursed.

Any payments required to be made by the Company are referred to herein as a "Reimbursement Payment". "Available

Operating Funds" means the sum of (i) the Company's net investment company taxable income (including net short-term

capital gains reduced by net long-term capital losses), (ii) the Company's net capital gains (including the excess of net

long-term capital gains over net short-term capital losses) and (iii) dividends and other distributions paid to the Company

on account of investments in portfolio companies (to the extent such amounts listed in clause (iii) are not included under

clauses (i) and (ii) above).

The Company's obligation to make a Reimbursement Payment will automatically become a liability of the Company on the

last business day of the applicable calendar quarter, except to the extent the Adviser has waived its right to receive such

payment for the applicable quarter.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

As of June 30, 2025 and December 31, 2024, the Company has no Unreimbursed Expense Payable.

**Note 7. Commitments and Contingencies**

As of June 30, 2025, the Company was not subject to any legal proceedings, although the Company may, from time to

time, be involved in litigation arising out of operations in the normal course of business or otherwise.

The Company has and may in the future become obligated to fund commitments such as revolving credit facilities, bridge

financing commitments or delayed draw commitments. As of June 30, 2025 and December 31, 2024 the fair value of

unfunded commitments held by the Company was $(14) and $(25), respectively, as shown on the Consolidated Schedule of

Investments. The Company had the following unfunded commitments to fund investments as of the indicated dates:

---

| | | |
|:---|:---|:---|
|  | **Par Value as of** <br>**June 30, 2025** | **Par Value as of**<br>**December 31, 2024** |
| Unfunded debt securities | $134938 | $109633 |
| Unfunded equity securities | 11162 | 11431 |
| Total unfunded commitments | $146100 | $121064 |

---

**Note 8. Directors Fees**

Our independent directors receive an annual fee of $100 (prorated for any partial year). In addition, the chair of the Audit

Committee receives an additional annual fee of $20 (prorated for any partial year). We are also authorized to pay the

reasonable out-of-pocket expenses for each independent director incurred in connection with the fulfillment of his or her

duties as independent directors (provided that such compensation will only be paid if the committee meeting is not held on

the same day as any regular meeting of the Board).

For the years endedJune 30, 2025 and December 31, 2024, independent directors fees will be paid in the form of our

common stock issued at a price per share equal to the greater of NAV or the market price, if any, at the time of payment.

On April 29, 2024, the Company issued 21,333 shares of common stock to our directors as compensation for their services

for the fiscal year ended December 31, 2023.

No compensation is paid to directors who are ''interested persons'' of the Company (as such term is defined in the 1940

Act). For the three and six months endedJune 30, 2025, the Company accrued $80 and $160 for directors' fees expense,

respectively. For the three and six months endedJune 30, 2024, the Company accrued $80 and $160 for directors' fees

expense, respectively.

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**Note 9. Share Data and Distributions**

**Earnings per Share**

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended

June 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| **Earnings (loss) per common share (basic** <br>**and diluted):**<br>|  |  |  |  |
| Net increase (decrease) in net assets resulting <br>from operations<br>| $9105 | $6481 | $20252 | $14349 |
| Weighted average common shares outstanding | 24217260 | 22178576 | 24098036 | 21880114 |
| **Earnings (loss) per common share (basic** <br>**and diluted):**<br>| $0.38 | $0.29 | $0.84 | $0.66 |

---

**Capital Activity**

The Company is authorized to issue 50,000,000 shares of preferred stock at a par value of $0.001 per share and

450,000,000 shares of common stock at a par value of $0.001 per share. The Company has entered into subscription

agreements in which investors have made capital commitments to purchase shares of the Company's common stock (the

"Subscription Agreements") with several investors, providing for the private placement of the Company's common stock.

Under the terms of the Subscription Agreements, investors are required to fund drawdowns to purchase the Company's

common stock at a price per share equal to the most recent NAV per share as determined by the Board (subject to the

adjustment to the extent required by Section 23 of the 1940 Act) up to the amount of their respective capital subscriptions

on an as-needed basis as determined by the Company with a minimum of ten business days prior notice.

As of June 30, 2025 and December 31, 2024, the Company had closed capital commitments totaling$410.7million and

$409.8 million, respectively, for the private placement of the Company's common stock, of which $66.1 million and $66.7

million, respectively, were uncalled.

---

| | | | |
|:---|:---|:---|:---|
| **Share Issuance Date** | **Shares Issued** | **Amount** | **Average Offering** <br>**Price per Share**<br>|
| March 26, 2025 | 116132 | $1721 | $14.82 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Share Issuance Date** | **Shares Issued** | **Amount** | **Average Offering** <br>**Price per Share**<br>|
| April 29, 2024 | 733093 | $10996 | $15.00 |

---

**Distributions**

Distributions to common stockholders are recorded on the ex-dividend date. The Company elected to be taxed as a RIC

under the Code for its taxable year ending December 31, 2024, and anticipates continuing to make such election in future

taxable years. As a RIC, the Company is required to distribute dividends each tax year as a RIC to its stockholders of an

amount generally at least equal to 90% of its investment company taxable income, determined without regard to any

deduction for dividends paid, in order to be eligible for tax benefits allowed to a RIC under Subchapter M of the Code. The

Company anticipates paying out as a distribution all or substantially all of those amounts. The amount to be paid out as a

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dividend is determined by the Board and is based on management's estimate of the Company's annual taxable income. Net

realized capital gains, if any, may be distributed to stockholders or retained for reinvestment.

The Company has adopted the DRIP that provides for the automatic reinvestment of all cash distributions declared by the

Board, unless a stockholder elects to "opt out" of the DRIP. As a result, if the Board declares a cash distribution, then the

stockholders who have not "opted out" of the DRIP will have their cash distributions automatically reinvested in additional

shares of common stock, rather than receiving the cash distribution. The Company reserves the right to use primarily newly

issued shares to implement the DRIP, whether the shares are trading at a price per share at or above NAV. NAV is

determined as of the latest available quarter end before such distribution. However, the Company reserves the right to

purchase shares in the open market in connection with the implementation of the DRIP. In the event the price per share is

trading at a discount to NAV, the Company intends to purchase shares in the open market rather than issue new shares.

For the six months endedJune 30, 2025 the following table summarizes the distributions declared on shares of the

Company's common stock and shares distributed pursuant to the DRIP to stockholders who had not opted out of the DRIP:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Amount** | **Amount Per** <br>**Share**<br>| **DRIP Shares** <br>**Issued**<br>|
| March 25, 2025 | March 25, 2025 | May 6, 2025 | $8393 | $0.35 | 182443 |
| June 27, 2025 | June 27, 2025 | August 1, 2025 | $8503 | $0.35 | 201754 |

---

For the six months endedJune 30, 2024 the following table summarizes the distributions declared on shares of the

Company's common stock and shares distributed pursuant to the DRIP to stockholders who had not opted out of the DRIP:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Amount** | **Amount Per** <br>**Share**<br>| **DRIP Shares** <br>**Issued**<br>|
| March 26, 2024 | March 22, 2024 | May 06, 2024 | $6475 | $0.30 | 140902 |
| June 28, 2024 | June 25, 2024 | August 06, 2024 | $6738 | $0.30 | 147220 |

---

**Note 10. Tax Matters**

The Company is subject to the U.S. federal income tax rules and filing requirements. The Company has elected to be

treated, and intends to qualify annually thereafter, as a RIC under Subchapter M of the Code. As a result, the Company

generally does not expect to be subject to U.S. federal income taxes on its RIC operations. However, there is no guarantee

that the Company will qualify to make such an election for any taxable year.

The Company has not recorded a liability for any uncertain tax positions pursuant to the provisions of ASC 740, Income

Taxes, as of June 30, 2025 and December 31, 2024.

In the normal course of business, the Company is subject to examination by federal and certain state and local tax

regulators. The Company adopted a tax year-end of December 31. It is the Company's policy to recognize accrued interest

and penalties, if any, related to unrecognized tax benefits as a component of provision for income taxes.

The Company's taxable income for each period is an estimate and will not be finally determined until the Company files its

tax return for each year. Therefore, the final taxable income earned in each period and carried forward for distribution in

the following period may be different than this estimate.

As of June 30, 2025, the company did not have a capital loss carryforward.

For U.S. federal income tax purposes, distributions paid to stockholders are reported as ordinary income, return of capital,

long term capital gains or a combination thereof. The tax character of distributions paid for the six months endedJune 30,

2025 and for the year ended December 31, 2024, were as follows:

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---

| | | |
|:---|:---|:---|
|  | **For the six months** <br>**ended** <br>**June 30, 2025**<br>| **For the year ended** <br>**December 31, 2024**<br>|
| Ordinary Income | $16896 | $28526 |
| Long-term Capital Gain | $— | $— |
| Return of Capital | $— | $— |

---

As of June 30, 2025 and December 31, 2024, the tax cost and estimated gross unrealized appreciation/(depreciation) from

investments for federal income tax purposes are as follows.

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Tax cost | $729603 | $556863 |
| Gross unrealized appreciation | $6361 | $3473 |
| Gross unrealized depreciation | (3749) | (3249) |
| **Net unrealized investment appreciation / (depreciation) on** <br>**investments**<br>| $2612 | $224 |

---

The Company has a wholly-owned corporate subsidiary that is consolidated for financial statement purposes. This entity

("taxable subsidiary"); LS BDC Holdings, LLC; has elected to be taxed as regular c-corporation for federal income tax

purposes. This taxable subsidiary recognizes deferred tax assets and liabilities for the estimated future tax effects

attributable to temporary differences between the tax basis of certain assets and liabilities and the reported amounts

included in the accompanying consolidated balance sheet using the applicable statutory tax rates in effect for the year in

which any such temporary differences are expected to reverse.

Total income tax (expense) benefit for the Company differs from the amount computed by applying the federal statutory

income tax rate of 21% to net increase (decrease) in net assets from operations for the period January 1, 2025 through

June 30, 2025, as follows:

---

| | |
|:---|:---|
|  | **Period ended ended** <br>**June 30, 2025**<br>|
| Income tax (expense)/benefit at federal statutory tax rate | $(4253) |
| Income attributable to the RIC and not subject to corporate tax | 3704 |
| State and local income tax benefit (net of federal detriment) | (118) |
| Prior year net operating loss carryforward |  |
| Prior year provision to return adjustments |  |
| Other | (1) |
| Permanent differences |  |
| Change in Valuation Allowance | (2) |
| **Total income tax (expense)/benefits** | $(670) |

---

At June 30, 2025, the taxable subsidiaries did not have any capital loss carryforwards.

Net operating loss carryforwards are available to offset future taxable income. These net operating loss carryforwards can

be carried forward indefinitely and may offset up to 80% of taxable income in any given year. Any unused portion will

continue to be carried forward. As of June 30, 2025, the Company had a net operating loss carryforward for federal income

tax purposes of $425.

At June 30, 2025, the Company determined a partial valuation allowance of the Company's gross deferred tax asset was

required. The Company's assessment considered, among other matters, the nature, frequency and severity of current and

cumulative losses, the duration of statutory carryforward periods and the associated risk that operating loss and capital loss

carryforwards are limited or are likely to expire unused, and unrealized gains and losses on investments. Through the

consideration of these factors, the Company has determined that it is more likely than not that the Company's net deferred

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tax asset would not be realized in full. As a result, the Company recorded a partial valuation allowance with respect to its

gross deferred tax asset for the quarter ended June 30, 2025. From time to time, the Company may modify its estimates or

assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance as new

information becomes available. Modifications to the Company's estimates or assumptions regarding its deferred tax

liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles

or related guidance or interpretations thereof, limitations imposed on or expirations of the Company's net operating losses

and capital loss carryovers (if any) and changes in applicable tax law could result in increases or decreases in the

Company's NAV per share, which could be material.

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**Note 11. Financial Highlights**

Below is the schedule of financial highlights of the Company for the six months endedJune 30, 2025 and June 30, 2024:

---

| | | |
|:---|:---|:---|
| **Per Common Share Data:**<sup>(1)</sup> | **For the six months** <br>**ended** <br>**June 30, 2025**<br>| **For the six months** <br>**ended** <br>**June 30, 2024**<br>|
| Net asset value, beginning of period | $14.81 | $14.85 |
| Net investment income (loss) | 0.74 | 0.62 |
| Net realized and unrealized gain (loss) | 0.10 | 0.04 |
| **Net increase (decrease) in net assets resulting from operations** | 0.84 | 0.66 |
| Initial issuance of Common Stock |  |  |
| Effect of offering price of subscriptions<sup>(2)</sup> |  | (0.02) |
| Distributions declared | (0.70) | (0.60) |
| **Net asset value, end of period** | $14.95 | $14.89 |
| Total return based on NAV<sup>(3)</sup> | 5.75% | 4.33% |
| Common shares outstanding, end of period | 24293039 | 22458336 |
| Weighted average shares outstanding | 24098036 | 21880114 |
| Net assets, end of period | $363095 | $334371 |
| **Ratio/Supplemental data**<sup>(4)</sup>**:** |  |  |
| Ratio of net investment income (loss) to average net assets | 10.03% | 8.36% |
| Ratio of expenses to average net assets | 12.79% | 6.14% |
| Ratio of expenses (before management fees, incentive fees and interest and <br>financing expenses) to average net assets<br>| 1.84% | 2.10% |
| Weighted average debt outstanding | $412810 | $63612 |
| Total debt outstanding | $484482 | $177855 |
| Asset coverage ratio<sup>(5)</sup> | 242.7% | 288.0% |
| Portfolio turnover | 18% | 3% |

---

(1)The per share data were derived by using the weighted average shares from the date of the first issuance of shares,

through June 30, 2025 and June 30, 2024.

(2)Increase (decrease) was due to the offering price of subscriptions during the period (See note 9).

(3)Total return was based upon the change in net asset value per share between the opening and ending net assets per

share and the issuance of common stock in the period. Total return is not annualized.

(4)Annualized, except for organizational expenses, if any, which are non-recurring.

(5)On September 30, 2024, the Company received exemptive relief from the SEC allowing the Company to modify the

asset coverage requirement to exclude the SBA-guaranteed debentures from this calculation. The inclusion of

unfunded commitments in the calculation of the asset coverage ratio would not cause us to be below the required

amount of regulatory coverage.

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**Note 12. Subsequent Events**

The Company's management evaluated subsequent events through the date of issuance of the consolidated financial

statements. There have been no subsequent events that occurred during such period that would require disclosure in, or

would be required to be recognized in, the consolidated financial statements.

![](ls-20250630_g1.gif)

<sup>1</sup> "Working Class Areas" refers to low- and moderate- income ("LMI") areas, Empowerment Zones, as defined in the

Empowerment Zones and Enterprise Communities Act of 1993, as amended ("Empowerment Zones"), Opportunity Zones,

as defined in the U.S. Tax Cut and Jobs Act of 2017 ("Opportunity Zones"), and/or areas targeted by a government entity

for redevelopment or to revitalize or stabilize designated disaster areas. LMI is defined under applicable CRA regulation as

an individual income that is less than 80% of the area median income ("AMI") or a median family income that is less than

80% in a census tract as reported by the Federal Financial Institutions Examination Council at https://www.ffiec.gov/

Medianincome.htm [ffiec.gov] (or such other industry recognized source as may be determined by the Adviser) and (ii) a

census tract, if it is identified as low-to-moderate income by the Federal Financial Institutions Examination Council at

https://geomap.ffiec.gov/ffiecgeomap/ (or such other industry recognized source as may be determined by the Adviser).

AMI is defined as the median family income for the metropolitan statistical area or metropolitan division, if applicable, or

if the person or census tract is located outside of a metropolitan statistical area, the statewide non-metropolitan median

family income.

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

**(dollar amounts in thousands, except per share data, unless otherwise indicated)**

*The following discussion and other parts of this report contain forward-looking information that involves risks and*

*uncertainties. References to "we," "us," "our," and the "Company," means Lafayette Square USA, Inc., unless otherwise*

*specified. The discussion and analysis contained in this section refers to our financial condition, results of operations and*

*cash flows. The information contained in this section should be read in conjunction with the consolidated financial*

*statements and notes thereto appearing elsewhere in this report. Please see "Cautionary Statement Regarding Forward-*

*Looking Statements" for a discussion of the uncertainties, risks and assumptions associated with this discussion and*

*analysis. Our actual results could differ materially from those anticipated by such forward-looking information due to*

*factors discussed under "Cautionary Statements Regarding Forward-Looking Statements" appearing elsewhere in this*

*report.*

**Business Overview**

We are an externally managed, closed-end, non-diversified management investment company that has elected to be

regulated as a business development company under the 1940 Act. In addition, for U.S. federal income tax purposes, we

have elected to be treated as a RIC under Subchapter M of the Code. As a business development company and a RIC, we

are also subject to certain constraints, including limitations imposed by the 1940 Act and the Code.

The Company is externally managed by Adviser pursuant to the Investment Advisory Agreement and supervised by our

Board of which a majority of the members are independent of us, the Adviser and its affiliates. The Adviser is a subsidiary

of Lafayette Square Holding Company, LLC (together with its controlled subsidiaries, including the Adviser and LS

Administration, LLC, "Lafayette Square"). The Adviser is a limited liability company that is registered as an investment

adviser under the Advisers Act. The Adviser oversees the management of the Company's activities and is responsible for

making investment decisions with respect to the Company's portfolio.

Our investment objective is to generate favorable risk-adjusted returns, including current income and to a lesser extent,

capital appreciation, principally from investments in "non-sponsored" middle market businesses. We aim to build a

geographically diverse portfolio by investing at least 5% of our assets in businesses that are primarily headquartered and/or

have a significant operating presence in Target Regions. We expect to invest primarily in first and second lien loans and, to

a lesser extent, in subordinated and mezzanine loans and equity and equity-like securities, including common stock,

preferred stock, and warrants. We may also invest in other community development and public welfare investments

identified as qualifying for CRA credit under the OCC and/or Federal Reserve guidance.

Our primary investment strategy is to create a portfolio of investments across a range of industries and communities to

mitigate risks and achieve our investment objective of generating favorable risk-adjusted returns while promoting public

welfare and community development in Working Class Areas<sup>1</sup>. We believe that many BDCs focus primarily on lending to

businesses located in high income places and that demand for capital investment and enhanced managerial assistance is

particularly acute among middle market companies located in overlooked places. We believe inflationary pressures and an

![](ls-20250630_g2.gif)

<sup>2</sup> We define "Working Class ", based on the definition of low- to moderate- income (LMI) under the CRA (defined below),

as an individual, family or household, whose income is less than 80% of the Area Median Income as reported by the

Federal Financial Institutions Examination Council at https://www.ffiec.gov/Medianincome.htm. 2 We define middle

market businesses as companies having annual revenues between $10 million and $1 billion and annual earnings before

interest, taxes, depreciation, and amortization ("EBITDA") of between $10 million and $100 million, although we may

invest in larger or smaller companies.

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increasing gap in employee benefits between Working Class<sup>2</sup> and middle and high income employees exacerbates this

demand, enabling us to utilize our investment approach to identify and select favorable risk-adjusted investment return

opportunities.

We generate revenue primarily in the form of interest and fee income derived from debt investments we hold and capital

gains, if any, on our investments.We generally expect to hold our investments until they are refinanced by the portfolio

company borrowers. From time to time, we may invest in loans with other lenders, or "club loans," and we may serve as

agent in connection with any such loans.Currently, approximately 15% of the portfolio consists of "club loans", with

Lafayette Square being lead agent on 64% of those deals. We may also participate in loans in the broadly syndicated loan

market. Our debt investments in portfolio companies typically have principal amounts of up to $50 million, bear interest at

floating rates tied to a widely available risk-free indices such as the U.S. Prime Rate, or the Secured Overnight Financing

Rate ("SOFR"). These rates reset periodically and generally are not guaranteed by the U.S. federal government or

otherwise. The debt instruments in which we invest are typically not rated by any rating agency. If they were rated, we

believe they would be rated below investment grade (rated lower than "Baa3" by Moody's Investors Service, lower than

"BBB–" by Fitch Ratings or lower than "BBB–" by Standard & Poor's Ratings Services). Under the guidelines established

by these rating agencies, such ratings are an indication of such debt instruments having predominantly speculative

characteristics with respect to the issuer's capacity to pay interest and repay principal. Debt instruments that are rated

below investment grade are sometimes referred to as "high yield bonds" or "junk bonds."

We primarily focus our origination efforts on "non-sponsored" businesses. We define non-sponsored businesses as

companies that are not substantially owned and managed by asset management firms that raise committed third-party

capital to take controlling stakes in portfolio companies. We believe such companies offer us an opportunity to establish

direct lending relationships without the involvement or backing of a traditional buyout fund sponsor. We believe this focus

will enable us over time to source investments through a less competitive lending process than if we focused on

"sponsored" businesses, which should put us in a better position to achieve favorable economic and structural terms for our

investments. We intend to complement this investment strategy with robust risk management practices and rigorous

ongoing portfolio monitoring. For a discussion of the risks inherent in our portfolio investments, please see the discussion

under "*Item 1A. Risk Factors*."

While we are generally industry agnostic with respect to our focus on investment sectors, we tend to primarily invest in the

business services, franchising, technology & telecommunications, transportation & logistics, and healthcare sectors.In

addition, we opportunistically seek exposures in the real estate industry (including with companies that manage real estate

and with real estate-related projects that advance our 2030 Goals). We intend to diversify our portfolio across sectors that

are resilient to market volatility, with limited commodity and direct consumer spending exposure.

The Company invests primarily in first and second lien loans and, to a lesser extent, in subordinated and mezzanine loans

and equity and equity-like securities, including common stock, preferred stock and warrants. The Company defines middle

market companies as those with annual revenues between $10 million and $1 billion, and annual earnings before interest,

taxes, depreciation, and amortization ("EBITDA") of between $10 million and $100 million, although the Company may

invest in larger or smaller companies. The Company also may purchase interests in loans, corporate bonds or other

instruments through secondary market transactions.

The Company previously formed wholly-owned subsidiaries, LS BDC Holdings, LLC, LS BDC Holdings (DN), LLC, LS

BDC Holdings (160), LLC and LS SBIC Holdings (160), LLC, each of which were Delaware limited liability companies,

to hold certain equity or equity-like investments in portfolio companies to which the Company has also made loans. In

addition, LS BDC Holdings (NGCF), LLC, a wholly-owned subsidiary of the Company, was formed to co-own and co-

manage NGCF Manager LLC (the "NGCF Manager") with the affiliate of a third-party investor. The NGCF Manager

manages Neighborhood Grocery Catalyst Fund LLC ("NGCF"), a private real estate investment vehicle, whose investment

![](ls-20250630_g3.gif)

<sup>3</sup>Lafayette Square analysis of U.S. Securities and Exchange Commission's Electronic Data Gathering, Analysis, and Retrieval (EDGAR)

database of BDC portfolio companies as of Q1 2025 and Dun and Bradstreet middle market companies (173,423 companies) as of

March, 2025. The Federal Financial Institutions Examination Council's (FFIEC) defines middle to upper income as median family

incomes making greater than 80% of the area median income. A total of 6,981 portfolio company investments were identified by their

headquartered addresses. Of these, this analysis includes 6,683 (96%) portfolio companies where we had enough data to determine if an

address was located in a Low-Moderate-Income tract. Cross investments is for all public and private BDCs; fair value has been

considered to calculate overlap in assets.

<sup>4</sup>Turnover rates are calculated by dividing the total terminations, voluntary and involuntary, for the period by the average number of

employees who worked during or received pay for the same period. National turnover includes private employee data from the U.S.

Bureau of Labor Statistics - Job Openings and Labor Turnover Survey for calendar year 2025. Data was extracted as of July 29, 2025.

<sup>5</sup>Two-thirds of consumers, or 65%, reported living paycheck to paycheck according to a December survey of 2,986 U.S. consumers

according to a report conducted by PYMNTS and Lending Club in February 2025 titled, "The New Reality Check: The Paycheck-To-

Paycheck Report".

<sup>6</sup>National private sector retirement benefits participation data is sourced from the U.S. Bureau of Labor Statistics – March 2024

National Compensation Survey. "Lower wage workers" refers to those earning less than 25% of average wages.

<sup>7</sup> Jobs employing Working Class People.

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strategy focuses on necessity-based, ecommerce-resistant, and well-located neighborhood shopping centers anchored by

omni-channel grocers serving the essential needs of diverse communities.

In December of 2024, in an effort to simplify its internal structure, the Company consolidated its equity investments in LS

BDC Holdings, LLC. On December 18, 2024, LS BDC Holdings (NGCF), LLC transferred its interest in NGCF Manager

to LS BDC Holdings, LLC and on December 30, 2024, dissolved. On December 31, 2024, LS BDC Holdings (160), LLC

and LS BDC Holdings (DN), LLC merged into LS BDC Holdings, LLC.

Additionally, the Company formed two wholly-owned subsidiaries, LS SBIC LP and LS SSBIC LP, each licensed by the

U.S. Small Business Administration (the "SBA"), to invest in eligible "small businesses" as defined by the SBA. LS SBIC

LP received its SBIC license on February 1, 2023 (made effective as of January 27, 2023) and LS SSBIC LP received its

SSBIC license on September 12, 2024. SBA regulations currently permit SBIC LP to borrow up to $175.0 millionin SBA-

guaranteed debentures with at least $87.5 million in regulatory capital (as defined in the SBA regulations), and SSBIC

license to borrow an additional $175.0 million of SBA-guaranteed debentures with at least $87.5 million in regulatory

capital, subject to the SBA's approval. As a result, the Company has access to up to $350.0 million in SBA-guaranteed

debentures amongst its family of SBIC funds under common control. The Company consolidates its wholly-owned

subsidiaries in these consolidated financial statements from the date of each subsidiary's formation. All significant

intercompany transactions and balances have been eliminated in such consolidation.

On May 30, 2025, the United States Department of Agriculture ("USDA") issued a "green light" letter inviting the

Company to submit its application to obtain a license to operate a rural business investment company ("RBIC") subsidiary.

Receipt of a green light letter from the USDA does not assure an applicant that the USDA will ultimately issue an RBIC

license, and the Company has received no assurance or indication from the USDA that it will receive an RBIC license, or

of the timeframe in which it would receive a license, should one be granted.

We believe that investment capital does not adequately flow to Working Class Areas and lower middle market companies.

Out of nearly 175,000 middle market companies with revenue between $10 million and $1 billion annually, BDCs have

only invested in 7,000 (4%) of such companies. Four out of five of BDC portfolio companies were headquartered in high-

income areas and 81% of the companies overlap in BDC portfolio holdings, suggesting that Working-Class Areas are

overlooked by traditional capital markets investors.<sup>3</sup> Additionally, U.S. private sector companies experience average annual

employee turnover of 44.3%,<sup>4</sup> an estimated 65% of U.S. workers live paycheck to paycheck,<sup>5</sup> and 73% of lower wage

workers do not participate in retirement benefits.<sup>6</sup>

We have established a series of important goals with respect to the portfolio companies in which we invest, which we refer

to as our "2030 Goals". These include (1) increasing employment opportunities by assisting our portfolio companies in

creating and/or retaining 100,000 Working Class Jobs<sup>7</sup> and 150,000 jobs overall; (2) providing significant managerial

assistance to small and middle-market companies by incentivizing at least 50% of our borrowers to adopt Qualifying

Human Capital Investments recommended by our affiliated managerial assistance platform Worker Solutions® and (3)

![](ls-20250630_g4.gif)

<sup>8</sup>"Working Class Areas" refers to low- and moderate- income ("LMI") areas, Empowerment Zones, as defined in the Empowerment

Zones and Enterprise Communities Act of 1993, as amended ("Empowerment Zones"), Opportunity Zones, as defined in the U.S. Tax

Cut and Jobs Act of 2017 ("Opportunity Zones"), and/or areas targeted by a government entity for redevelopment or to revitalize or

stabilize designated disaster areas. LMI is defined under applicable CRA regulation as an individual income that is less than 80% of the

area median income ("AMI") or a median family income that is less than 80% in a census tract as reported by the Federal Financial

Institutions Examination Council at https://www.ffiec.gov/Medianincome.htm [ffiec.gov] (or such other industry recognized source as

may be determined by the Adviser) and (ii) a census tract, if it is identified as low-to-moderate income by the Federal Financial

Institutions Examination Council at https://geomap.ffiec.gov/ffiecgeomap/ (or such other industry recognized source as may be

determined by the Adviser). AMI is defined as the median family income for the metropolitan statistical area or metropolitan division, if

applicable, or if the person or census tract is located outside of a metropolitan statistical area, the statewide non-metropolitan median

family income.

<sup>9</sup>"Substantial Employment" means more than 50% of the portfolio company's workforce, measured by W-2 forms or 1099 forms filed

by workers with the Internal Revenue Service.

<sup>10</sup> Reflects information reported by portfolio companies as of their respective transaction closing date and additional

information, as of June 30, 2025, reported by 21 of 45 portfolio companies that have participated in quarterly KPI

reporting. These metrics reflect information reported by portfolio companies regarding their cumulative total number of

unique employees, counting from the closing date of the Company's investment in such portfolio company. These metrics

include information reported by current portfolio companies as well as portfolio companies that have been exited by the

Company.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

encouraging economic growth in Working Class Areas<sup>8</sup> by investing at least 50% of our assets in companies that are either

located in Working Class Areas or are Substantial Employers<sup>9</sup> of Working Class People.

*Tracking Progress Towards the 2030 Goals*

To measure our progress towards these goals and understand the demographic data of employees in our portfolio

companies, we track the locations of our portfolio companies and the Working Class status of their employees. For these

purposes, we rely on feedback from our portfolio companies to obtain information about the status and well-being of their

employees. We cannot guarantee the accuracy of the information provided to us by our portfolio companies, and the

metrics used by different portfolio companies to calculate such information varies significantly.However, based on our

analysis, we believe that deployment of our capital and the adoption of Qualifying Human Capital Investments

recommended by our Worker Solutions® platform for our portfolio companies can improve the lives of their employees as

reflected through a variety of statistical measures.

As of June 30, 2025:

• 51.9% of our portfolio (and 54.3% of the transactions where we were lead agent) were invested in borrowers who

are either located in Working Class Areas or are Substantial Employers of Working Class People, with 14,543

Working Class People employed out of a total of 30,638 employees. <sup>10</sup>

• In addition, with respect to engagement by our current portfolio companies with Qualifying Human Capital

Investments, as of June 30, 2025, 47% of the transactions where we were lead agent (32% of our overall Portfolio

Companies) had adopted Qualifying Human Capital Investments (for a total of eight Third-Party Solution

Providers and fourteen HR policy changes deployed).

• Regarding all companies that have been part of our portfolio since the inception of the Company, as of June

31, 2025, 47% of the transactions where we were lead agent (31% of all Portfolio Companies) had adopted

Qualifying Human Capital Investments (for a total of seven Third-Party Solution Providers and fourteen HR

policy changes deployed).

• Of the 30,638 workers employed through our portfolio companies, 3,347 workers have utilized the services of the

Third-Party Solution Providers and/or qualifying policy changes.

![](ls-20250630_g5.gif)

<sup>11</sup> Turnover rates are calculated by dividing the total terminations, voluntary and involuntary, for the period by the average

number of employees who worked during or received pay for the same period. National turnover includes private employee

data from the U.S. Bureau of Labor Statistics - Job Openings and Labor Turnover Survey for calendar year 2025. Data was

extracted as of July 29, 2025.

<sup>12</sup> Change Since Initial Investment Average is taken as the average of all portfolio companies' change in turnover, medical

care participation or retirement participation since the BDC's initial investment, otherwise known as deal close date, with

the portfolio company. A negative value indicates turnover has decreased since initial investment. Where data wasn't

available in the same quarter as the initial investment, the next available quarter's data was used. Based on 21 out of 45

portfolio companies' current human capital data made available to Lafayette Square.

<sup>13</sup>Medical Care Benefits are plans that provide services or payments for services rendered in the hospital or by a qualified

medical care provider. Participation is calculated from the unrounded percentage of workers who participate in the plan.

1,447 employees from portfolio companies who did not provide medical care benefits data to the Company were not

included in this calculation. National private sector medical care and retirement benefits participation data are sourced from

the U.S. Bureau of Labor Statistics – March 2024 National Compensation Survey.

<sup>14</sup>Retirement Benefit plans includes defined benefit pension plans and defined contribution retirement plans. Participation

is calculated from the unrounded percentage of workers who participate in the plan. 1,591 employees from portfolio

companies who did not provide medical care benefits data to the Company were not included in this calculation. National

private sector medical care and retirement benefits participation data are sourced from the U.S. Bureau of Labor Statistics –

March 2024 National Compensation Survey.

<sup>15</sup>National median income 1-year data is from the U.S. Census Bureau - American Community Survey. This is the most

recent data available as of March 2025. Median family income is used to calculate individual LMI per CRA guidelines.

The metric is included at the national level to serve as a similar–but not exact–comparison.

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• Overall, a total of 6,374 workers have access to improved benefits through Qualifying Human Capital

Investments.

By comparison, as of June 30, 2024:

• 59.0% of our portfolio (and 59.3% of the transactions where we were lead agent) were invested in borrowers who

were either located in Working Class Areas or were Substantial Employers of Working Class People, with 7,002

Working Class People employed out of a total of 17,367 employees.

• In addition, with respect to engagement by our current portfolio companies with Qualifying Human Capital

Investments, as of June 30, 2024, 44% of the transactions where we were lead agent (28% of our overall Portfolio

Companies) had adopted Qualifying Human Capital Investments (for a total of six Third-Party Solution Providers

and six HR policy changes deployed), with 2,410 workers served and a total of 4,558 workers with access to

services.

Over time, we believe our portfolio companies' uptake of Qualifying Human Capital Investments, in combination with our

capital, will contribute to an improvement in below metrics, shown over the past two years:

---

| | | | |
|:---|:---|:---|:---|
| **Portfolio Company Human Capital Data** | **Portfolio Company Human Capital Data** | **June 30, 2025** | **June 30, 2024** |
| **Employee Turnover**<sup>11</sup> | Portfolio Company Average (Quarterly) | 10.6% | 10% |
| **Employee Turnover**<sup>11</sup> | National Average (Quarterly) | 10.7% | 11% |
| **Employee Turnover**<sup>11</sup> | Change Since Initial Investment Average<sup>12</sup> | (3.7)% | (1.1)% |
| **Participation in** <br>**Medical Care** <br>**Benefits**<sup>13</sup> | Portfolio Company Average (Quarterly) | 39.5% | 42% |
| **Participation in** <br>**Medical Care** <br>**Benefits**<sup>13</sup> | National Average (Annually, As of March 2024) | 45% | 45% |
| **Participation in** <br>**Medical Care** <br>**Benefits**<sup>13</sup> | Change Since Initial Investment Average | 8.3% | 3.5% |
| **Participation in** <br>**Retirement Benefits**<sup>14</sup> | Portfolio Company Average (Quarterly) | 40.0% | 51% |
| **Participation in** <br>**Retirement Benefits**<sup>14</sup> | National Average (Annually, As of March 2024) | 53% | 53% |
| **Participation in** <br>**Retirement Benefits**<sup>14</sup> | Change Since Initial Investment Average | 3.2% | 3.5% |
| **Median Employee** <br>**Income** | LMI Employee Median Income (Annually) | $49920 | $42787 |
| **Median Employee** <br>**Income** | Non-LMI Employee Median Income (Annually) | $92185 | $109203 |
| **Median Employee** <br>**Income** | National Median Family Income (Annually, As of<br>2024)<sup>15</sup><br>| $96401 | $96401 |

---

![](ls-20250630_g6.gif)

<sup>16</sup> Cumulative debt prevented through Third-Party Solution Provider, HoneyBee, from 146 total workers across two

portfolio companies from a total of 1,790 workers with access to the service. Savings relative to high-cost lending products

calculated by using the average payday loan APR (~400%), average loan amount of $215, and an assumed 5-month

repayment period (the average time it takes to repay payday loans). https://www.incharge.org/debt-relief/how-payday-

loans-work/

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As of June 30, 2025, among our portfolio companies that have adopted Third-Party Solution Provider services, 195 total

workers across three portfolio companies have cumulatively saved $209,137 in emergency savings, 146 workers across two

portfolio companies combined have prevented an estimated $119,631 in debt<sup>16</sup> through small-dollar, zero-interest loans, 45

workers from one portfolio company are building their credit scores through monthly rent reporting, and seven workers

from one portfolio company have cumulatively participated in 52 one-on-one financial coaching sessions to better their

financial wellness. Additionally, five portfolio companies have cumulatively adopted fourteen recommended HR policy

changes to expand benefits access and participation for employees, serving 3,055 workers combined.

In addition to supporting human capital investments and outcomes at our portfolio companies, Worker Solutions® has

provided enhanced managerial assistance to companies and projects affiliated with our portfolio companies. This effort

includes providing credit building through rent reporting services to 1 residential property where 673 tenants have enrolled

in credit building services out of a total of 4679 residents (99.1% uptake). Of the 673 residents who are participating in the

rent reporting program, 15 of these residents established a new credit file or became "credit visible" to the consumer credit

bureaus. These newly credit visible residents posted an average credit score of 676 at the end of the recent reporting period.

Since enrollment in the rent reporting program, these residents have posted an average credit score improvement of 39

points, an average credit score of 646; overall, 53% of these residents improved their credit score, with 9% of the overall

resident group increasing their credit score above 660 - typically considered the subprime-prime threshold.

As of June 30, 2025, a grand total of 4,030 individuals have been served through Worker Solutions® for Lafayette Square

portfolio companies and projects affiliated with portfolio companies.

The Company rewards portfolio companies with an interest rate step down when they adopt Qualifying Human Capital

Investments that we believe will enhance employee well-being and improve retention. As of June 30, 2025, Lafayette

Square portfolio companies adopting Qualifying Human Capital Investments have received $361,612 of cumulative

savings through interest rate step downs from all lenders of record, with $237,671 of such interest rate step down savings

being provided by the Company.

**Key Components of Operations**

***Investments***

Our level of investment activity may vary substantially from period to period depending on many factors, including the

amount of debt available to middle market companies, the general economic environment and the competitive environment

for the type of investments we make.

***Revenues***

We generate revenue primarily in the form of interest and fee income on debt investments we hold and capital gains, if any,

on our investments. We generally expect our debt investments to have a stated term of five to eight years and typically to

bear interest at a floating rate usually determined on the basis of a benchmark such as the SOFR. Interest on these debt

investments are generally payable quarterly. In some instances, we may receive payments on our debt investments based on

scheduled amortization of the outstanding balances. In addition, we may receive repayments of some of our debt

investments prior to their scheduled maturity date. The frequency or volume of these repayments may fluctuate

significantly from period to period. Our portfolio activity reflects the proceeds of sales of securities. We may also generate

revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing

managerial assistance and consulting fees.

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***Expenses***

We expect our primary annual operating expenses to include advisory fees and the reimbursement of expenses under our

Investment Advisory Agreement and our Administration Agreement, respectively. We also bear other expenses, which

include:

• our initial organization costs and operating costs incurred prior to the filing of our election to be regulated as a

BDC (in connection with our formation and the initial closing of the private offering of shares of our Common

Stock);

• the costs associated with our private offering and any subsequent offerings of our securities;

• calculating individual asset values and our net asset value (including the cost and expenses of third-party valuation

services);

• out-of-pocket expenses, including travel expenses, incurred by LS BDC Adviser, LLC (the "Adviser"), or

members of its investment team, or payable to third parties, performing due diligence on prospective portfolio

companies, dead deal or broken deal expenses and, if necessary, enforcing our rights;

• certain costs and expenses relating to distributions paid by us;

• administration fees payable under the Administration Agreement and related expenses;

• debt service and other costs of borrowings or other financing arrangements;

• the allocated costs incurred in connection with providing services to employees of portfolio companies (of the

type described in *Item I. "Business—Investment Strategy"*) and/or managerial assistance (including any services

offered to portfolio companies) to those portfolio companies that request it (whether such costs are incurred by the

Adviser or LS Administration, LLC (the "Administrator") or through payments to third party service providers);

• amounts payable to third parties relating to, or associated with, making or holding investments;

• transfer agent and custodial fees;

• costs of hedging;

• commissions and other compensation payable to brokers or dealers;

• federal and state registration fees;

• any stock exchange listing fees and fees payable to rating agencies;

• the cost of effecting any sales and repurchases of our Common Stock and other securities;

• U.S. federal, state and local taxes;

• independent director fees and expenses;

• costs of preparing consolidated financial statements and maintaining books and records, costs of preparing tax

returns, costs of compliance with Sarbanes-Oxley Act, and attestation and costs of filing reports or other

documents with the SEC (or other regulatory bodies) and other reporting and compliance costs, including

registration and listing fees, and the compensation of professionals responsible for the preparation or review of the

foregoing;

• the costs of any reports, proxy statements or other notices to our stockholders (including printing and mailing

costs), the costs of any stockholders' meetings and the compensation of investor relations personnel responsible

for the preparation of the foregoing and related matters;

• the costs of specialty and custom software expense for monitoring risk, compliance and overall investments;

• our fidelity bond;

• any necessary insurance premiums;

• extraordinary expenses (such as litigation or indemnification payments or amounts payable pursuant to any

agreement to provide indemnification entered into by the Company);

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• direct fees and expenses associated with independent audits, agency, consulting and legal costs; costs of winding

up;

and other expenses incurred by either the Administrator or us in connection with administering our business, including

payments under the Administration Agreement based upon our allocable portion of the compensation paid to our Chief

Financial Officer and Chief Compliance Officer and their respective staffs. We also include the cost of providing

managerial assistance upon request to portfolio companies, and reimbursements of third-party expenses incurred by the

Administrator in carrying out its administrative services, including providing assistance in accounting, legal, compliance,

operations, technology, internal audit, investor relations, and loan agency services (including any internal and third party

service providers and/or software solutions related to the foregoing), and being responsible for the financial records that

we are required to maintain and preparing reports to our stockholders and reports filed with the SEC. In addition, our

Administrator assists us in determining and publishing our net asset value, overseeing the preparation and filing of our tax

returns and the printing and dissemination of reports to our stockholders, our internal control assessment under the

Sarbanes-Oxley Act, and generally overseeing the payment of our expenses and the performance of administrative and

professional services rendered to us by others. We expect our general and administrative expenses to be relatively stable or

to decline as a percentage of total assets during periods of asset growth and to increase proportionally when our asset value

declines.

***Leverage***

The amount of leverage we use in any period depends on a number of factors, including cash on-hand available for

investing, the cost of financing and general economic and market conditions. Prior to the Small Business Credit

Availability Act being signed into law, a BDC generally was not permitted to incur indebtedness unless immediately after

such borrowing it has an asset coverage for total borrowings of at least 200%. The Small Business Credit Availability Act,

signed into law on March 23, 2018, contains a provision that grants a BDC the option, subject to certain conditions and

disclosure obligations, to reduce the asset coverage requirement to 150%. In April 2021, our Board and initial stockholder

approved the reduced asset coverage ratio.

On September 30, 2024, we received an exemptive relief from the SEC to permit us to exclude the debt of the LS SBICs

that are guaranteed by the SBA from the 150% asset coverage ratio we are required to maintain under the 1940 Act. With

this exemptive relief, we will have increased capacity to fund up to $175.0 million (the maximum amount of SBA-

guaranteed debentures an SBIC may currently have outstanding once certain conditions have been met) of investments in

each LS SBIC with SBA-guaranteed debentures in addition to being able to fund investments with borrowings up to the

maximum amount of debt that the 150% asset coverage ratio limitation would allow us to incur.

**Portfolio and Investment Activity**

The following table summarizes our portfolio and investment activity during the six months ended endedJune 30, 2025

and June 30, 2024 (information presented herein is at amortized cost unless otherwise indicated):

---

| | | |
|:---|:---|:---|
| | **For the six months** <br>**ended** <br>**June 30, 2025**<br>| **For the six months** <br>**ended** <br>**June 30, 2024**<br>|
| Total Investments, beginning of period | $556863 | $271523 |
| New investments purchased | 285770 | 59744 |
| Net accretion of discount on investments | 1132 | 244 |
| Net realized gains (losses) on investments | 82 |  |
| Investments sold or repaid | (114244) | (3403) |
| **Total Investments, end of period** | $729603 | $328108 |
| Portfolio companies, at beginning of period | 34 | 19 |
| Number of new portfolio companies | 13 | 3 |
| Number of exited portfolio companies | (2) |  |
| **Portfolio companies, at end of period** | 45 | 22 |

---

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As of June 30, 2025 and December 31, 2024, the Company's investments consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| First lien senior secured loans | $679771 | 93.2% | $679742 | 92.9% |
| Equity | 43387 | 5.9% | 45662 | 6.2% |
| Subordinated debt | 3293 | 0.5% | 3293 | 0.4% |
| Preferred equity | 1652 | 0.2% | 2018 | 0.3% |
| Convertible note | 1500 | 0.2% | 1500 | 0.2% |
| Warrants |  | —% |  | —% |
| **Total** | $729603 | 100.0% | $732215 | 100.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| First lien senior secured loans | $540064 | 97.0% | $540195 | 96.9% |
| Equity | 11909 | 2.1% | 12028 | 2.2% |
| Subordinated debt | 1738 | 0.3% | 1712 | 0.3% |
| Preferred equity | 1652 | 0.3% | 1652 | 0.3% |
| Convertible note | 1500 | 0.3% | 1500 | 0.3% |
| Warrants |  | —% |  | —% |
| **Total**  | $556863 | 100.0% | $557087 | 100.0% |

---

The tables below describe investments by industry composition based on fair value as of June 30, 2025 and December 31,

2024:

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value**  | **Fair Value**  |
| Commercial Services & Supplies | $65915 | 9.0% | $67927 | 9.3% |
| Professional Services | 61975 | 8.5% | 62393 | 8.5% |
| Specialized Consumer Services | 54745 | 7.5% | 55065 | 7.5% |
| Transportation Infrastructure | 46015 | 6.3% | 46145 | 6.3% |
| Road & Rail | 41870 | 5.7% | 40090 | 5.5% |
| IT Services | 34014 | 4.7% | 34353 | 4.7% |
| Interactive Media & Services | 33166 | 4.5% | 33759 | 4.6% |
| Media | 34164 | 4.7% | 32301 | 4.4% |
| Diversified Financial Services | 30196 | 4.1% | 30500 | 4.2% |
| Business Support Services | 29536 | 4.0% | 29925 | 4.1% |
| Hotels, Restaurants & Leisure | 28298 | 3.9% | 28853 | 3.9% |
| Trading Companies & Distributors | 24759 | 3.4% | 24759 | 3.4% |
| Electric Utilities | 22320 | 3.1% | 22500 | 3.1% |
| Health Care Equipment & Services | 19804 | 2.7% | 19901 | 2.7% |
| Real Estate Management & Development | 18673 | 2.6% | 18667 | 2.5% |
| Application Software | 18386 | 2.5% | 18485 | 2.5% |
| Insurance | 18000 | 2.5% | 18000 | 2.5% |
| Diversified Telecommunication Services | 17846 | 2.4% | 17846 | 2.4% |
| Health Care Providers & Services | 17539 | 2.4% | 17677 | 2.4% |
| Construction & Engineering | 17350 | 2.4% | 17449 | 2.4% |
| Pharmaceuticals | 16221 | 2.2% | 16344 | 2.2% |
| Aerospace & Defense | 15020 | 2.1% | 15185 | 2.1% |
| Independent Power & Renewable | 13999 | 1.9% | 14000 | 1.9% |
| Water Utilities | 13048 | 1.8% | 13264 | 1.8% |
| Electrical Equipment | 12591 | 1.7% | 12607 | 1.7% |
| Gas Utilities | 10702 | 1.5% | 10730 | 1.5% |
| Food Service Distributor | 9877 | 1.4% | 9902 | 1.4% |
| Diversified Consumer Services | 2459 | 0.3% | 2459 | 0.3% |
| Food Products | 1115 | 0.2% | 1129 | 0.2% |
| **Total**  | $729603 | 100.0% | $732215 | 100.0% |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Commercial Services & Supplies | $66606 | 12.0% | $66901 | 12.1% |
| Professional Services | 57752 | 10.4% | 58135 | 10.4% |
| Specialized Consumer Services | 39897 | 7.2% | 40288 | 7.2% |
| Road & Rail | 41613 | 7.5% | 39900 | 7.2% |
| Interactive Media & Services | 34011 | 6.1% | 34293 | 6.2% |
| IT Services | 33807 | 6.1% | 33820 | 6.1% |
| Media | 34140 | 6.1% | 32725 | 5.9% |
| Diversified Financial Services | 28388 | 5.1% | 28492 | 5.1% |
| Transportation Infrastructure | 26252 | 4.7% | 26530 | 4.8% |
| Water Utilities | 23112 | 4.2% | 23454 | 4.2% |
| Health Care Equipment & Services | 19702 | 3.5% | 19949 | 3.6% |
| Application Software | 18288 | 3.3% | 18400 | 3.3% |
| Health Care Providers & Services | 17595 | 3.2% | 17768 | 3.2% |
| Construction & Engineering | 17427 | 3.1% | 17428 | 3.1% |
| Pharmaceuticals | 16278 | 2.9% | 16426 | 2.9% |
| Aerospace & Defense | 16069 | 2.9% | 16108 | 2.9% |
| Electric Utilities | 12286 | 2.2% | 12500 | 2.2% |
| Restaurants | 11714 | 2.1% | 11783 | 2.1% |
| Hotels, Restaurants & Leisure | 10688 | 1.9% | 10877 | 2.0% |
| Gas Utilities | 10737 | 1.9% | 10787 | 1.9% |
| Real Estate Management & Development | 9184 | 1.6% | 9182 | 1.6% |
| Independent Power & Renewable | 8388 | 1.5% | 8388 | 1.5% |
| Diversified Consumer Services | 2459 | 0.4% | 2459 | 0.4% |
| Food & Staples Retailing | 470 | 0.1% | 494 | 0.1% |
| **Total** | $556863 | 100.0% | $557087 | 100.0% |

---

The weighted average yields at amortized cost and fair value of our portfolio as of June 30, 2025 and December 31, 2024

were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Fair Value** | **Amortized Cost** | **Fair Value** |
| First lien senior secured debt<sup>(2)</sup> | 11.1% | 11.1% | 11.3% | 11.3% |
| Subordinated debt | 13.2% | 13.2% | 14.0% | 14.2% |
| Bonds | 12.3% | 12.3% | 12.3% | 12.3% |
| Convertible note | 10.0% | 10.0% | 10.0% | 10.0% |
| **Weighted Average Yield**<sup>(1)</sup> | 11.1% | 11.1% | 11.4% | 11.4% |

---

(1) The weighted average yield of our portfolio does not represent the total return to our stockholders.

(2) Computed based on (a) the annual actual interest rate or yield earned plus amortization of fees and discounts on the

performing debt and other income producing investments as of the reporting date, divided by (b) the total investments

(including investments on non-accrual and non-income producing investments) at amortized cost or fair value. This

calculation excludes exit fees that are receivable upon repayment of certain loan investments. As of June 30, 2025 and

December 31, 2024, there were $221 and no exit fees, respectively.

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---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Number of portfolio companies | 45 | 34 |
| Percentage of performing debt bearing a floating rate <sup>(1)</sup> | 90.5% | 95.5% |
| Percentage of performing debt bearing a fixed rate <sup>(1)(2)</sup> | 9.5% | 4.5% |
| Weighted average spread over SOFR or LIBOR of all accruing floating <br>rate investments | 6.7% | 6.7% |
| Weighted average EBITDA (in millions) <sup>(3)</sup> | $20.5 | $22.2 |
| Weighted average leverage (net debt/EBITDA)<sup>(4)</sup> | 3.8x | 3.7x |
| Weighted average interest coverage<sup>(4)</sup> | 2.5x | 2.4x |

---

(1) Measured as a percentage of total portfolio investments at fair value. Excludes equity-like investments and debt

investments, if any, placed on non-accrual.

(2) Includes equity-like investments with coupon-bearing and income-generating structure notes and preferred stock

investments, if applicable.

(3) Figures are based on portfolio company financial statements available to the Company at period end.

(4) To calculate net debt, we include debt that ranks both senior and equally with to the tranche of debt owned by us

but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. Weighted average

net debt to EBITDA is weighted based on the fair value of our debt investments, excluding investments where net debt

to EBITDA may not be the appropriate measure of credit risk. Weighted average interest coverage is weighted based

on the fair value of our performing debt investments, excluding investments where interest coverage may not be the

appropriate measure of credit risk.

Ongoing monitoring and risk management of each asset is conducted by the Adviser's Portfolio Monitoring team under the

supervision of our Chief Risk Officer. The Portfolio Monitoring team is separate and distinct from the Adviser's

investment team, and has as its primary responsibilities to:

• formally monitor portfolio companies post-investment on an ongoing basis;

• perform quarterly valuations of all assets in partnership with third-party valuation agent(s);

• maintain and update internal and external asset ratings;

• oversee BDC-level monitoring; and

• lead amendment, "work out," and restructurings processes.

Portfolio Monitoring monitors the financial trends of each portfolio company to determine if it is meeting its respective

business plan and to assess the appropriate course of action with respect to investments in each portfolio company.

Portfolio Monitoring has several methods of evaluating and monitoring the performance and fair value of our investments,

which may include the following:

• periodic and regular contact with portfolio company management and, if appropriate, the financial or strategic

sponsor, to discuss financial position, requirements and variants from approved budgets and internal projections;

• assessment of performance relative to business plan and key operating metrics and compliance with financial

covenants;

• assessment of performance relative to industry benchmarks or portfolio comparables, if any;

• attendance at and participation in board meetings and lender calls; and

• review of monthly, quarterly and annual audited financial statements and financial projections of portfolio

companies.

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As part of the monitoring process, our Adviser employs an investment rating system to categorize our investments. In

addition to various risk management and monitoring tools, our Adviser rates the credit risk of all investments on a scale of

1 to 5 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio

investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of origination or

acquisition), although it may also take into account the performance of the portfolio company's business, the collateral

coverage of the investment and other relevant factors. The rating system is as follows:

---

| | |
|:---|:---|
| **<u>Investment Rating</u>** | **<u>Description</u>** |
| 1 | Involves the least amount of risk to our initial cost basis. The borrower is performing above<br>expectations, and the trends and risk factors for this investment since the time of origination<br>or acquisition are generally favorable which may include the performance of the portfolio<br>company or a potential exit.<br>|
| 2 | Involves an acceptable level of risk that is similar to the risk at the time of origination or<br>acquisition. The borrower is generally performing as expected and the risk factors are neutral<br>to favorable. All investments or acquired investments in new portfolio companies are initially<br>assessed a rating of 2.<br>|
| 3 | Involves a borrower performing below expectations and indicates that the loan's risk has<br>increased since origination or acquisition. The borrower could be out of compliance with debt<br>covenants; however loan payments are generally not past due.<br>|
| 4 | Involves a borrower performing materially below expectations and indicates that the loan's<br>risk has increased materially since origination or acquisition. In addition to the borrower<br>being generally out of compliance with debt covenants, loan payments may be past due (but<br>generally not more than 120 days past due)<br>|
| 5 | Involves a borrower performing substantially below expectations and indicates that the loan's<br>risk has increased substantially since origination or acquisition. Most or all of the debt<br>covenants are out of compliance and payments are substantially delinquent. Loans rated 5 are<br>not anticipated to be repaid in full and we will reduce the fair market value of the loan to the<br>amount we anticipate will be recovered.<br>|

---

The following table shows the distribution of the Company's investments on the 1 to 5 internal risk rating scale as of

June 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| <br>**Investment Rating** | **Investments at** <br>**Fair Value**<br>| **Percentage of** <br>**Total Investments**<br>| **Investments at** <br>**Fair Value**<br>| **Percentage of** <br>**Total Investments**<br>|
| 1 | $— | —% | $— | —% |
| 2 | 658695 | 89.9% | 483968 | 86.9% |
| 3 | 33430 | 4.6% | 73119 | 13.1% |
| 4 | 40090 | 5.5% |  |  |
| 5 |  |  |  |  |
| **Total** | $732215 | 100.0% | $557087 | 100.0% |

---

**Critical Accounting Policies and Estimates**

The preparation of our consolidated financial statements and related disclosures in conformity with U.S. GAAP requires

management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and

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expenses. Actual results could materially differ from those estimates. We have identified the following items as critical

accounting policies.

***Fair Value Measurements***

We value investments for which market quotations are readily available at their market quotations. However, a readily

available market value is not expected for many of the investments in our portfolio, and we value these portfolio

investments at fair value as determined in good faith by the Advisor and our valuation policy and process.

The valuation process is a multi-step endeavor, which includes the following:

• the quarterly valuation process commences with each portfolio company or investment being initially evaluated by

the investment professionals of the Advisor responsible for the monitoring of the portfolio investment;

• the Advisor's Valuation Committee reviews the valuations provided by the independent third-party valuation firm

(other than immaterial investments, which are internally valued quarterly unless otherwise deemed appropriate by

the Valuation Committee, and subsequently corroborated by an independent valuation firm on an annual basis)

and develops a valuation recommendation;

• the Adviser's Valuation Committee reviews each valuation recommendation to confirm they have been calculated

in accordance with our valuation policy and compares such valuations to the independent valuation firms'

valuation ranges to ensure the Adviser's valuations are reasonable;

• the Adviser's Valuation Committee then determines fair value marks for each of our portfolio investments; and

• the Board and Audit Committee periodically reviews the valuation process and provides oversight in accordance

with the requirements of Rule 2a-5 under the 1940 Act.

The Company applies Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value

Measurement (ASC 820), as amended, which establishes a framework for measuring fair value in accordance with U.S.

GAAP and required disclosures of fair value measurements. ASC 820 determines fair value to be the price that would be

received for an investment in a current sale, which assumes an orderly transaction between market participants on the

measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market

(which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance

with ASC 820, the Company considers its principal market to be the market that has the greatest volume and level of

activity. ASC 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in

determination of fair value.

The three-tier hierarchy of inputs is summarized below.

• Level 1 - Quoted prices are available in active markets/exchanges for identical investments as of the reporting

date.

• Level 2 - Pricing inputs are observable inputs including, but not limited to, prices quoted for similar assets or

liabilities in active markets/exchanges or prices quoted for identical or similar assets or liabilities in markets that

are not active, and fair value is determined through the use of models or other valuation methodologies.

• Level 3 - Pricing inputs are unobservable for the investment and include activities where there is little, if any,

market activity for the investment. The inputs into determination of fair value require significant management

judgment and estimation.

***Investments***

Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the

net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification

method without regard to unrealized appreciation or depreciation previously recognized, and includes investments charged

off during the period, net of recoveries. Net change in unrealized appreciation or depreciation on investments as presented

in the Consolidated Statements of Operations in Part I, Item 1 of this Form 10-Q reflects the net change in the fair value of

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investments, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are

realized.

***Revenue Recognition***

*Investment and Related Investment Income*

The Company records interest income, including amortization of premium and accretion of discount on the accrual basis to

the extent that such amounts are expected to be collected. The Company records amortized or accreted discounts or

premiums as interest income using the effective interest method or straight-line interest method, as applicable, and adjusted

only for material amendments or prepayments. Dividend income, which represents dividends from equity investments and

distributions from subsidiaries, if any, is recognized on an accrual basis to the extent that the Company expect to collect

such amount. PIK interest, computed at the contractual rate specified in each loan agreement, is periodically added to the

principal balance of the loan, rather than being paid to us in cash, and is recorded as interest income. Thus, the actual

collection of PIK interest may be deferred until the time of debt principal repayment. Origination fees received are

recorded as deferred income and recognized as investment income over the term of the loan. Upon prepayment of a loan,

any unamortized origination fees are recorded as investment income. The Company receives certain fees from portfolio

companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees, covenant

waiver fees and loan amendment fees, and are recorded as investment income when earned.

*Non-accrual loans*

A loan can be left on accrual status during the period the Company is pursuing repayment of the loan. Management reviews

all loans that become 90 days or more past due on principal and interest, or when there is reasonable doubt that principal or

interest will be collected, for possible placement on non-accrual status. When a loan is placed on non-accrual status, unpaid

interest credited to income is reversed. Additionally, any original issue discount and market discount are no longer accreted

to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans

are recognized as income or applied to principal depending upon management's judgment. Non-accrual loans are restored

to accrual status when past due principal and interest is paid, and, in management's judgment, payments are likely to

remain current. As of June 30, 2025, we had no investments on non-accrual status.

***Income Taxes***

The Company has elected to be treated as a RIC under Subchapter M of the Code and intends to maintain such election in

future taxable years. However, there is no guarantee that the Company will qualify to make such an election for any future

taxable year. In order to qualify and be subject to tax as a RIC, among other things, the Company is required to meet

certain source of income and asset diversification requirements and timely distribute dividends for U.S. federal income tax

purposes to its stockholders of an amount at least equal to 90% of its investment company taxable income, as defined by

the Code and determined without regard to any deduction for dividends paid, for each tax year. As a RIC, the Company

would intend to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S.

federal income taxes with respect to all income distributed to its stockholders.

The Company is subject to a nondeductible 4% U.S. federal excise tax on its undistributed income, unless it timely

distributes (or is deemed to have timely distributed) an amount equal to the sum of (1) 98% of ordinary income for each

calendar year, (2) 98.2% of the amount by which capital gains exceeds capital losses (adjusted for certain ordinary losses)

for a one-year period ending on October 31 of the calendar year, and (3) any income and gains recognized, but not

distributed, from the previous years. While the Company intends to distribute any income and capital gains to avoid

imposition of this 4% U.S. federal excise tax, it may not be successful in avoiding entirely the imposition of this tax. In that

case, the Company will be liable for the tax only on the amount by which it does not meet the distribution requirement.

The Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes ("ASC Topic 740"). ASC

Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in

consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing

the Company's tax returns to determine whether the tax positions are "more-likely-than-not" to be sustained by the

applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be

recorded as a tax expense or tax benefit in the current year. It is the Company's policy to recognize accrued interest and

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penalties related to uncertain tax benefits in income tax expense. There were no material unrecognized net tax benefits or

unrecognized net tax liabilities related to uncertain income tax positions as of and through June 30, 2025.

**Results of Operations**

The following table represents the operating results for the three and six months endedJune 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Total investment income | $21237 | $12690 | $40552 | $23455 |
| Net expenses | 12045 | 5809 | 22770 | 9935 |
| Net investment income (loss) | 9192 | 6881 | 17782 | 13520 |
| Net realized gains (losses) on investments | 24 |  | 82 |  |
| Net change in unrealized gains (losses) | (111) | (400) | 2388 | 829 |
| **Net increase (decrease) in net assets** <br>**resulting from operations**<br>| $9105 | $6481 | $20252 | $14349 |

---

***Investment Income***

The composition of the Company's investment income was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| **Investment income** |  |  |  |  |
| Interest income | $19844 | $11533 | $36994 | $21149 |
| Fee income | 359 | 340 | 1086 | 553 |
| Interest from cash and cash equivalents | 1034 | 817 | 2472 | 1753 |
| **Total investment income** | $21237 | $12690 | $40552 | $23455 |

---

The increase in total investment income from $23,455 for the six months endedJune 30, 2024 to $40,552 for the six

months endedJune 30, 2025 was primarily driven by our deployment of capital and invested balance of investments. The

increase in total investment income from $12,690 for the three months ended June 30, 2024 to $21,237 for the three months

endedJune 30, 2025 was primarily driven by our deployment of capital and invested balance of investments.

*Expenses*

The following table summarizes the Company's expenses for the three and six months endedJune 30, 2025 andJune 30,

2024:

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest and financing expenses | $7254 | $1625 | $13269 | $2547 |
| Incentive fee | 1620 | 1213 | 3134 | 2382 |
| Management fee | 1585 | 872 | 3063 | 1614 |
| Income tax expense | 41 |  | 670 |  |
| Administrative services fee | 450 | 500 | 900 | 1006 |
| Professional fees | 350 | 746 | 659 | 1123 |
| General and administrative expenses | 590 | 773 | 840 | 1103 |
| Directors' fees | 80 | 80 | 160 | 160 |
| Organizational costs | 75 |  | 75 |  |
| **Total expenses** | 12045 | 5809 | 22770 | 9935 |

---

Total expenses before expense support increased to $22.8 million for the six months endedJune 30, 2025 from $9.9 million

for the six months endedJune 30, 2024. Total expenses before expense support increased to $12.0 million for the three

months endedJune 30, 2025 from $5.8 million for the three months ended June 30, 2024.

Interest and financing expenses increased to $13,269 for the six months endedJune 30, 2025 compared to $2,547 for the

six months endedJune 30, 2024 primarily due to an increase in the average principal amount of borrowings on our

Subscription Facility, draw down in SBA-guaranteed debentures, ING Credit Facility and Repurchase Obligations. Interest

and financing expenses increased to $7,254 for the three months ended June 30, 2025 compared to $1,625 for the three

months ended June 30, 2024 primarily due to an increase in the average principal amount of borrowings on our

Subscription Facility, draw down in SBA-guaranteed debentures, ING Credit Facility and Repurchase Obligations.

The increase in management fees for the three and six months endedJune 30, 2025 when compared to the three and six

months endedJune 30, 2024 was driven by our deployment of capital and an increase in average gross assets.

Incentive fees increased to $3,134for the six months endedJune 30, 2025 when compared to $2,382 for the six months

endedJune 30, 2024 due to the increase in Net Investment Income. Incentive fees increased to $1,620for the three months

endedJune 30, 2025 when compared to $1,213 for the three months ended June 30, 2024 due to the increase in Net

Investment Income. Refer to Note 6 Investment Advisory Agreement of the Form 10-Q for a discussion of how the

incentive fee is calculated.

The decrease in administrative services fee to $900 for the six months endedJune 30, 2025 when compared to $1,006for

the six months endedJune 30, 2024 was due to the Company's allocable portion of overhead compensation, rent, office

services and equipment, under the Company's Administration Agreement. The decrease in administrative services fee to

$450 for the three months endedJune 30, 2025 when compared to $500 for the three months ended June 30, 2024 was due

to the Company's allocable portion of overhead compensation, rent, office services and equipment, under the Company's

Administration Agreement.

General and administrative expenses, legal fees, professional fees and placement fees decreasedto $1,499 during the six

months endedJune 30, 2025 when compared to $2,226 for the six months endedJune 30, 2024 in connection with

independent audit services, external legal services, third-party valuation services for our portfolio, insurance premiums,

accounting, financial preparation and reporting services, and fees paid to the placement agent for the additional

commitment closes and capital draws. General and administrative expenses, legal fees, professional fees and placement

fees decreased to $940 during the three months endedJune 30, 2025 when compared to $1,519 for the three months ended

June 30, 2024 in connection with independent audit services, external legal services, third-party valuation services for our

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portfolio, insurance premiums, accounting, financial preparation and reporting services, and fees paid to the placement

agent for the additional commitment closes and capital draws.

The increase in organizational costs to $75 for the three and six months endedJune 30, 2025 when compared to $0 for the

three and six months endedJune 30, 2024 was primarily related to the formation of the Company and/or the Company's

subsidiaries. Refer to Note 1 of the Form 10-Q on details regarding organizational costs.

Offering expenses decreased for the three and six months endedJune 30, 2025 when compared to the three and six months

endedJune 30, 2024 in connection with the offering of shares of the Company's common stock, including out-of-pocket

expenses of the Adviser and its agents and affiliates. Refer to Note 1 of the Form 10-Q on details regarding offering costs.

**Financial Condition, Liquidity and Capital Resources**

We intend to generate cash primarily from the net proceeds of any private offering of our Common Stock and from cash

flows from interest and fees earned from our investments and principal repayments and proceeds from sales of our

investments. We expect our primary use of cash will be investments in portfolio companies, payments of our expenses and

cash distributions to our stockholders. From time to time we explore opportunities to enter into significant corporate

control transactions which, if consummated, could use a material amount of cash and/or require material incremental

financing.

***Contractual Obligations***

We have entered into the Investment Advisory Agreement with our Adviser. Our Adviser agreed to serve as our investment

adviser in accordance with the terms of our Investment Advisory Agreement. Payments under our Investment Advisory

Agreement in each reporting period consist of the base management fee equal to a percentage of the value of our gross

assets as well as an incentive fee based on our performance.

Under the Investment Advisory Agreement, the Adviser manages the day-to-day operations of, and provides investment

advisory services to, the Company. The Board approved the renewal of the Investment Advisory Agreement on May 8,

2025. The Adviser is a registered investment adviser with the SEC. The Adviser receives fees for providing services,

consisting of two components, a base management fee and an incentive fee.

We define a "Liquidity Event" as any of: (1) a quotation or listing of our common stock on a national securities exchange,

including an initial public offering or (2) a Sale Transaction. A "Sale Transaction" means (a) the sale of all or substantially

all of our capital stock or assets to, or another liquidity event with, another entity or (b) a transaction or series of

transactions, including by way of merger, consolidation, recapitalization, reorganization, or sale of stock in each case for

consideration of either cash and/or publicly listed securities of the acquirer. Potential acquirers could include entities that

are not BDCs that are advised by the Adviser or its affiliates.

*Base Management Fee*

The base management fee ("Management Fee") is payable quarterly in arrears beginning in the period during its initial

capital drawdown from its non-affiliated investors (the "Initial Drawdown") at an annual rate of (i) prior to a Liquidity

Event, 0.75%, and (ii) following a Liquidity Event, 1.0%, in each case of the average value of our gross assets (gross assets

equal the total assets of the Company as set forth on the Company's balance sheet) at the end of the two most recently

completed calendar quarters. No Management Fee is charged on committed but undrawn capital commitments.

For the three and six months endedJune 30, 2025, the Company incurred Management Fees of $1,585 and $3,063,

respectively. For the three and six months endedJune 30, 2024, the Company incurred Management Fees of $872 and

$1,614, respectively. As of June 30, 2025 and December 31, 2024, there was $1,585 and $1,375 Management Fee payable

to the Adviser, respectively.

*Incentive Fee*

The Company also pays the Adviser an incentive fee consisting of two parts: (i) an incentive fee based on pre-incentive fee

net investment income (the "Income-Based Fee"), and (ii) the capital gains component of the incentive fee (the "Capital

Gains Fee"). For more information regarding the Income-Based Fee and the Capital Gains Fee, see Note 6 - Related Party

Agreements and Transactions.

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For the three and six months endedJune 30, 2025, the Company incurred Income-Based Fee of $1,620 and $3,134,

respectively. For the three and six months endedJune 30, 2024, the Company incurred Income-Based Fee of $1,213 and

$2,382, respectively. As of June 30, 2025and December 31, 2024, $1,620 and $1,578, respectively, remained payable.

*Administration Agreement*

We have entered into an Administration Agreement with the Administrator pursuant to which the Administrator furnishes

us with administrative services necessary to conduct our day-to-day operations. The Administrator is reimbursed for

administrative expenses it incurs on our behalf in performing its obligations. Such costs are reasonably allocated to us on

the basis of assets, revenues, time records or other reasonable methods. We do not reimburse our Administrator for any

services for which it receives a separate fee.

If any of our contractual obligations discussed above were terminated, our costs may increase under any new agreements

that we enter into as replacements. We would also likely incur expenses in locating alternative parties to provide the

services we receive under our Investment Advisory Agreement and Administration Agreement.

For the three and six months endedJune 30, 2025 and June 30, 2024, our expenses were paid by a related party of the

Adviser and will be reimbursed by us. As of June 30, 2025 and December 31, 2024, the total amount owed to the affiliates

of the Adviser is included in the Due to Affiliate line item in the Consolidated Statements of Assets and Liabilities.

For the three and six months endedJune 30, 2025, the Company incurred$450 and $900, respectively, in fees under the

Administrative Agreement. For the three and six months endedJune 30, 2024, the Company incurred$500 and $1,006,

respectively, in fees under the Administrative Agreement. These fees are included in administrative service fees in the

accompanying Consolidated Statements of Operations. As of June 30, 2025 and December 31, 2024, $0 and $0,

respectively, were unpaid and included in administrative services fee payable in the accompanying Consolidated

Statements of Assets and Liabilities. No administrative services fee was charged to the Company prior to the Company's

commencement of operations.

*Expense Support and Conditional Reimbursement Agreement*

On December 30, 2021, we entered into an expense support and conditional reimbursement agreement (the "Expense

Support Agreement") with the Adviser. The Adviser may elect to pay certain of our expenses on our behalf (each, an

"Expense Payment"), so long as no portion of the payment will be used to pay any interest expense or shareholder

servicing and/or distribution fees. Any Expense Payment that the Adviser has committed to pay must be paid by the

Adviser to us in any combination of cash or other immediately available funds no later than forty-five days after such

commitment was made in writing, and/or offset against amounts due from us to the Adviser or its affiliates.

Following any calendar quarter in which Available Operating Funds (as defined below) exceed the cumulative distributions

accrued to our shareholders based on distributions declared with respect to record dates occurring in such calendar quarter

(the amount of such excess being hereinafter referred to as "Excess Operating Funds"), we will pay such Excess Operating

Funds, or a portion thereof, to the Adviser until such time as all Expense Payments made by the Adviser to us within three

years prior to the last business day of such calendar quarter have been reimbursed. Any payments required to be made by

us will be referred to herein as a "Reimbursement Payment." "Available Operating Funds" means the sum of (i) our net

investment company taxable income (including net short-term capital gains reduced by net long-term capital losses), (ii)

our net capital gains (including the excess of net long-term capital gains over net short-term capital losses) and (iii)

dividends and other distributions paid to us on account of investments in portfolio companies (to the extent such amounts

listed in clause (iii) are not included under clauses (i) and (ii) above).

Our obligation to make a Reimbursement Payment shall automatically become a liability of ours on the last business day of

the applicable calendar quarter, except to the extent the Adviser has waived its right to receive such payment for the

applicable quarter.

As of June 30, 2025 and December 31, 2024, the Company has no Unreimbursed Expense Payable.

***Capital Resources and Borrowings***

As a BDC, we are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock

senior to shares of our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150%, subject to

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receipt of certain approvals and compliance with certain disclosure requirements, immediately after each such issuance.

Section 61(a) of the 1940 Act reduces the asset coverage requirements applicable to BDCs from 200% to 150% so long as

the BDC meets certain disclosure requirements and obtains certain approvals. In April 2021, our Board and initial

stockholder approved the reduced asset coverage ratio. The reduced asset coverage requirements permit us to increase the

maximum amount of leverage that we are permitted to incur by reducing the asset coverage requirements applicable to us

from 200% to 150%. As defined in the 1940 Act, asset coverage of 150% means that for every $100 of net assets we hold,

we may raise $200 from borrowing and issuing senior securities as compared to $100 from borrowing and issuing senior

securities for every $100 of net assets under a 200% asset coverage requirement. In addition, while any senior securities

remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such

securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. As of

June 30, 2025 and December 31, 2024, the Company's asset coverage ratio based on the aggregate amount outstanding of

senior securities was 242.7% and 269.2%.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the

Company's total debt for the For the three and six months endedJune 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $6854 | $1469 | $12453 | $2190 |
| Non-usage fee <sup>(1)</sup> | (3) | 10 | 44 | 26 |
| Amortization of deferred financing costs | 403 | 146 | 772 | 331 |
| Weighted average stated interest rate | 6.06% | 7.17% | 6.08% | 6.93% |
| Weighted average outstanding balance | $453411 | $82486 | $412810 | $63612 |

---

(1)Non-usage fee is applicable to the undrawn portion of the credit facilities.

**Credit Facilities**

*ING Credit Facility*

On June 18, 2024, Lafayette Square USA, Inc. (the "Company") entered into a Senior Secured Revolving Credit

Agreement (as amended, restated, supplemented, or otherwise modified from time to time, the "ING Credit Facility") with

ING Capital, LLC, as Administrative Agent, Lead Arranger, Bookrunner and Sustainability Structuring Agent.

On September 20, 2024, the Company entered into Amendment No. 1 to the Senior Secured Revolving Credit Agreement

(the "First Amendment"), which amends the ING Credit Facility. The parties to the First Amendment include the

Company, EverBank, N.A. as Lender, First-Citizens Bank & Trust Company as Lender, Subsidiary Guarantors party

thereto and ING Capital LLC, as Administrative Agent. The First Amendment provides for, among other things, an upsize

in the total commitments from lenders under the credit facility from $75 million to $150 million.

On December 12, 2024, the Company entered into that certain Lender Joinder Agreement (the "First Lender Joinder

Agreement"), pursuant to which, through the accordion feature in the ING Credit Facility, the aggregate commitments

under the ING Credit Facility increased from $150 million to $175 million. The parties to the First Lender Joinder

Agreement include the Company, BankUnited, N.A., as additional lender, the Subsidiary Guarantors party thereto and the

Administrative Agent.

On December 20, 2024, the Company entered into that certain Lender Joinder Agreement (the "Second Lender Joinder

Agreement"), pursuant to which, through the accordion feature in the ING Credit Facility, the aggregate commitments

under the ING Credit Facility increased from $175 million to $225 million. The parties to the Second Lender Joinder

Agreement include the Company, Customers Bank, as additional lender, the Subsidiary Guarantors party thereto and the

Administrative Agent.

On March 20, 2025, the "Company entered into that certain Lender Joinder Agreement (the "Third Joinder Agreement"),

pursuant to which, through the accordion feature in the ING Credit Facility, the aggregate commitments under the ING

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Credit Facility increased from $225 million to $250 million. The parties to the Third Lender Joinder Agreement include the

Company, Customers Bank, as additional lender, the Subsidiary Guarantors party thereto and the Administrative Agent.

On April 24, 2025, the Company entered into Amendment No. 2 to the Senior Secured Revolving Credit Agreement (the

"Second Amendment"), which amends the ING Credit Facility. The parties to the Second Amendment include the

Company, the lenders party thereto, Subsidiary Guarantors party thereto and ING Capital LLC, as Administrative Agent.

The Second Amendment provides for, among other things,an increase of the accordion provision to permit increases to a

total facility amount of up to $275 million and permit the Company to do up to $30 million of financing under repurchase

agreements.

On April 24, 2025 the Company entered into a waiver letter permitting the Company to enter into a repurchase agreement

with Midcap Financial Trust dated as of April 17, 2025.

On May 30, 2025, the Company entered into that certain Lender Joinder Agreement (the "Fourth Joinder Agreement"),

pursuant to which, through the accordion feature in the ING Credit Facility, the aggregate commitments under the ING

Credit Facility increased from $250 million to $275 million. The parties to the Fourth Lender Joinder Agreement include

the Company, City National Bank, as additional lender, the Subsidiary Guarantors party thereto and the Administrative

Agent.

The ING Credit Facility is guaranteed by certain subsidiaries of the Company in existence as of the closing date of the ING

Credit Facility, and will be guaranteed by certain subsidiaries of the Company that are formed or acquired by the Company

in the future (collectively, the "Guarantors"). Proceeds of the ING Credit Facility may be used for general corporate

purposes, including the funding of portfolio investments.

The ING Credit Facility currently allows the Company to borrow up to $275 million, subject to certain restrictions,

including availability under a borrowing base, which is based upon unused capital commitments made by investors in the

Company and the value of eligible portfolio investments. The amount of permissible borrowings under the ING Credit

Facility may be increased through an uncommitted accordion feature through which existing and new lenders may, at their

option, agree to provide additional financing up to an aggregate of $300 million. The ING Credit Facility is secured by a

perfected first-priority interest in the unused commitments of the Company's investors and substantially all of the eligible

portfolio investments held by the Company and each Guarantor, subject to certain exceptions.

The availability period with respect to the revolving credit facility under the ING Credit Facility will terminate on June 19,

2028 ("Commitment Termination Date") and the ING Credit Facility will mature on June 18, 2029 ("Maturity Date").

During the period from the Commitment Termination Date to the Maturity Date, the Company will be obligated to make

mandatory prepayments under the ING Credit Facility out of the proceeds of certain asset sales and other recovery events.

The Company may borrow amounts in U.S. dollars or certain other permitted currencies. Amounts drawn under the ING

Credit Facility in U.S. dollars will bear interest at either (i) term SOFR plus margin of 2.70% per annum, or (ii) the

alternate base rate plus margin of 1.70% per annum. In each case, the annual interest rate will be adjustable based on a

pricing structure that directly references our 2030 Goals, with ING acting as the sole Sustainability Structuring Agent. The

Company may elect either the term SOFR or alternate base rate at the time of drawdown, and loans denominated in U.S.

dollars may be converted from one rate to another at any time at the Company's option, subject to certain conditions.

Amounts drawn under the ING Credit Facility in other permitted currencies will bear interest at the relevant rate specified

therein plus an applicable margin (including any applicable credit spread adjustment).

The ING Credit Facility includes customary affirmative and negative covenants, including certain limitations on the

incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit

facilities of this nature.

As of June 30, 2025 and December 31, 2024, the Company had $254.5 million and $208.2 million, respectively, in

outstanding borrowings from the ING Facility.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the

ING Facility for the three and six months endedJune 30, 2025 and June 30, 2024:

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $4327 | $215 | $7525 | $215 |
| Non-usage fee <sup>(1)</sup> | (3) |  | 44 |  |
| Amortization of financing costs | 158 | 9 | 296 | 9 |
| Weighted average stated interest rate | 6.95% | 8.08% | 7.08% | 8.08% |
| Weighted average outstanding balance | $249702 | $10714 | $214452 | $5357 |

---

(1)Non-usage fee is applicable to the undrawn portion of the credit facilities.

*Subscription Facility*

On February 2, 2022, the Company entered into a subscription-based credit agreement with Sumitomo Mitsui Banking

Corporation, which was amended on June 28, 2022, December 21, 2022, and February 1, 2024 (and as may be further

amended, modified or supplemented, the "Subscription Facility"). The Subscription Facility allowed the Company to

borrow up to $38.4 million, subject to certain restrictions, including availability under a borrowing base that was based

upon unused capital commitments made by investors in the Company. The amount of permissible borrowings under the

Subscription Facility could be increased to up to $1 billion with the consent of the lenders. The Subscription Facility

matured on May 2, 2024 and bore interest at an annual rate of: (i) with respect to reference rate loans, a reference rate for

the period plus a margin equal to 2.50% (the "Applicable Margin") and (ii) with respect to alternative rate loans, the

greatest of (a) the administrative agent's prime rate, (b) Term SOFR with a one-month term plus the Applicable Margin and

(c) the federal funds rate plus 0.50%. Subject to certain exceptions, the Subscription Facility was secured by a first lien

security interest in the Company's unfunded investor equity capital commitments. The Subscription Facility included

customary covenants, certain limitations on the incurrence of additional indebtedness and liens, and other maintenance

covenants, as well as usual and customary events of default for credit facilities of this nature. On May 2, 2024, the

Subscription Facility and all obligations thereunder were terminated.

As of June 30, 2025 and December 31, 2024, the Company had $0.0 million and $208.2 million, respectively, in

outstanding borrowings from the Subscription Facility.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the

Subscription Facility for the three and six months endedJune 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $— | $253 | $— | $492 |
| Non-usage fee <sup>(1)</sup> |  | 10 |  | 26 |
| Amortization of financing costs |  | 75 |  | 218 |
| Weighted average stated interest rate | —% | 8.07% | —% | 7.83% |
| Weighted average outstanding balance | $— | $12659 | $— | $12642 |

---

(1)Non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the Subscription

Facility.

**SBA-Guaranteed Debentures**

LS SBIC LP and LS SSBIC LP are able to borrow funds from the SBA against their regulatory capital (which

approximates equity capital in LS SBIC LP and LS SSBIC LP) that is paid in and is subject to customary regulatory

requirements, including, but not limited to, periodic examination by the SBA. As of June 30, 2025 and December 31, 2024,

the Company funded LS SBIC LP and LS SSBIC LP with an aggregate total of $115.0 million and $110.0 million,

respectively, of regulatory capital, and have $230.0 million and $192.5 million, respectively, in SBA-guaranteed

debentures outstanding. SBA debentures are non-recourse to us, have a 10-year maturity, and may be prepaid at any time

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without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a

market-driven spread over 10-year U.S. Treasury Notes. Current SBA regulations limit the amount that each of LS SBIC

LP and LS SSBIC LP may borrow to a maximum of $175.0 million, which is up to twice its potential regulatory capital.

The SBA-guaranteed debentures incurred an upfront commitment fee of 1.00% on the total commitment amount and a

2.435% issuance discount on drawdowns, which are amortized over the life of the SBA-guaranteed debentures. In addition,

an annual fee is charged on the SBA-guaranteed debentures which are amortized over the period.

The following table summarizes the Company's SBA-guaranteed debentures as of June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Issuance Date** | **Maturity Date** | **Debenture Amount** | **Interest Rate** | **SBA Annual Charge** |
| September 15, 2023 | March 1, 2034 | $31000 | 5.04% | 0.047% |
| March 15, 2024 | September 1, 2034 | $5960 | 4.38% | 0.047% |
| June 14, 2024 | September 1, 2034 | $45540 | 4.38% | 0.129% |
| September 16, 2024 | March 1, 2035 | $82505 | 4.96% | 0.129% |
| December 12, 2024 | March 1, 2035 | $27500 | 4.96% | 0.347% |
| March 28, 2025 | September 1, 2035 | $9995 | 4.76% | 0.347% |
| June 27, 2025 | September 1, 2035 | $27500 | 4.86% | 0.347% |

---

The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed

debentures for the three and six months endedJune 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $2526 | $611 | $4928 | $1093 |
| Non-usage fee |  |  |  |  |
| Amortization of financing costs | 246 | 62 | 476 | 104 |
| Weighted average stated interest rate | 4.98% | 5.40% | 5.01% | 5.67% |
| Weighted average outstanding balance | $203709 | $45467 | $198359 | $38790 |

---

(1)The Company's initial borrowing under the SBA Debentures program occurred on September 15, 2023.

**Repurchase Obligations**

In order to finance certain investment transactions, the Company may, from time to time, enter into repurchase agreements

with Macquarie US Trading LLC ("Macquarie"), whereby the Company sells to Macquarie an investment that it holds and

concurrently enters into an agreement to repurchase the same investment (any such obligation, a "Repurchase Obligation")

at an agreed-upon price at a future date, not to exceed 90-days from the date it was sold.

The Company entered into two repurchase agreements on May 1, 2024 which were collateralized by the Company's term

loans to each of Salt Dental Collective (the "Salt Repurchase Obligation") and Med Learning Group, LLC (the "MLG

Repurchase Obligation" and together with the Salt Repurchase Obligation, the "May 2024 Repurchase Obligations").

Interest under each of the May 2024 Repurchase Obligations was calculated as (a) the product of the funded amount of the

loan and (b) the product of (i) the number of days the loan is outstanding (subject to number of minimum days per the

agreement) and (ii) daily fee rate. The Company maintained effective control over the security because it is entitled and

obligated to repurchase the security before its maturity. Therefore, the repurchase agreement was treated as a secured

borrowing and not a sale. On July 30, 2024 the Company repurchased its obligation under the MLG Repurchase

Obligation.

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As of June 30, 2025 and December 31, 2024, the Company had $0.0 million and $0.0 million, respectively, in outstanding

borrowings from the Repurchase Obligations.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the

Repurchase Obligations for the three and six months endedJune 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**June 30, 2025**<br>| **For the three** <br>**months ended** <br>**June 30, 2024**<br>| **For the six** <br>**months ended** <br>**June 30, 2025**<br>| **For the six** <br>**months ended** <br>**June 30, 2024**<br>|
| Interest expense | $— | $390 | $— | $390 |
| Non-usage fee |  |  |  |  |
| Amortization of financing costs |  |  |  |  |
| Weighted average stated interest rate | —% | 11.50% | —% | 11.50% |
| Weighted average outstanding balance <sup>(1)</sup> | $— | $13645 | $— | $6822 |

---

The facilities of the Company consist of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Aggregate**<br>**Principal** <br>**Amount** <br>**Available**<br>| **Principal** <br>**Amount** <br>**Outstanding**<br>| **Unused** <br>**Portion**<br>| **Aggregate**<br>**Principal** <br>**Amount** <br>**Available**<br>| **Principal** <br>**Amount** <br>**Outstanding**<br>| **Unused** <br>**Portion**<br>|
| Secured borrowings | $275000 | $254482 | $20518 | $225000 | $208232 | $16768 |
| SBA-Guaranteed <br>Debentures<br>| 230000 | 230000 |  | 192505 | 192505 |  |
| **Total** | $505000 | $484482 | $20518 | $417505 | $400737 | $16768 |

---

***Off-Balance Sheet Arrangements***

We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet

the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve,

to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of

June 30, 2025 and December 31, 2024, we were not party to any off-balance sheet arrangements.

**Recent Developments**

On July 1, 2025, the Company invested in an equity holding in Neighborhood Grocery Catalyst Fund LLC totaling $3.4

million.

On July 2, 2025, July 10, 2025, July 24, 2025, and July 30, 2025, the Company invested in a senior secured first lien

revolver in Rotolo Consultants Inc, with fundings totaling $3.3 million, bearing an interest rate of 3M Term SOFR + CSA

+ 5.50%, maturing on January 31, 2031.

On July 3, 2025, the Company increased their commitment in Rock Gate Capital, LLC in senior secured first lien term loan

of $3.1 million, with a funding of $2.1 million, bearing an interest rate of 3M Term SOFR + 6.75%, maturing on May 30,

2029. On July 7, 2025, the Company funded an equity holding in NW1LS CO-INVEST LP totaling $0.4 million.

On July 14, 2025, the Company invested a senior secured first lien revolver in Dance Nation Holdings LLC with a funding

of $2.5 million, bearing an interest rate of 3M Term SOFR + 6.95%, maturing on August 24, 2028.

On July 15, 2025 and July 30, 2025, the Company invested a senior secured first lien revolver in C Speed LLC with a

funding of $1.5 million, bearing an interest rate of 3M Term SOFR + 6.00%, maturing on October 1, 2029.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

On July 21, 2025, the Company invested a senior secured first lien delayed draw term loan in ZRG Partners LLC with a

funding of $0.9 million, bearing an interest rate of 6M Term SOFR + 6.00%, maturing on June 14, 2029.

On July 28, 2025, the Company invested a senior secured first lien delayed draw term loan in Synergi, LLC with a funding

of $0.4 million, bearing an interest rate of 3M Term SOFR + 7.45%, maturing on December 17, 2027.

In addition, as of this Report date, we had an investment backlog and pipeline of approximately $110.5 million and $464.0

million, respectively. Investment backlog includes transactions approved by the Adviser's investment committee and/or for

which a formal mandate, letter of intent or a term sheet have been issued, and therefore we believe have a strong likelihood

of closing. Investment pipeline includes transactions where initial due diligence has begun and/or analysis is in process, but

no formal mandate, letter of intent or term sheets have been issued. The consummation of any of the investments in this

backlog and pipeline depends upon, among other things, one or more of the following: satisfactory completion of our due

diligence investigation of the prospective portfolio company, our acceptance of the terms and structure of such investment

and the negotiation, execution, and delivery of satisfactory transaction documentation. In addition, we may sell all or a

portion of these investments and certain of these investments may result in the repayment of existing investments. We

cannot assure you that we will make any of these investments or that we will sell all or any portion of these investments.

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

We are subject to financial market risks, most significantly changes in interest rates. Interest rate sensitivity refers to the

change in our earnings that may result from changes in the level of interest rates. Because we expect to fund a portion of

our investments with borrowings, our net investment income is expected to be affected by the difference between the rate at

which we invest and the rate at which we borrow. As a result, we can offer no assurance that a significant change in market

interest rates will not have a material adverse effect on our net investment income.

In addition, any investments we make that are denominated in a foreign currency will be subject to risks associated with

changes in currency exchange rates. These risks include the possibility of significant fluctuations in the foreign currency

markets, the imposition or modification of foreign exchange controls and potential illiquidity in the secondary market.

These risks will vary depending upon the currency or currencies involved.

The following table estimates the potential changes in net cash flow generated from interest income, should interest rates

increase or decrease by 100, 200 or 300 basis points. These hypothetical interest income calculations are based on a model

of the settled debt investments in our portfolio, held as of June 30, 2025, and are only adjusted for assumed changes in the

underlying base interest rates and the impact of that change on interest income. As of June 30, 2025, approximately 90.9%

of investments at fair value (excluding investments on non-accrual, unfunded debt investments and non-bearing equity

investments) represent floating-rate investments with a SOFR floor (including investments bearing a prime interest rate

contracts) and approximately 9.1% of investments at fair value represent non floating-rate investments. Additionally, our

subscription-based credit facility is also subject to a floating interest rate and currently paid on a floating SOFR rates.

Interest expense is calculated based on outstanding secured borrowings as of June 30, 2025 and based on the terms of our

Subscription Facility. Interest expense on our Subscription Facility is calculated using the stated interest rate as of June 30,

2025, adjusted for the hypothetical changes in rates, as shown below. We continue to finance a portion of our investments

with borrowings and the interest rates paid on our borrowings may impact significantly our net interest income.

We regularly measure exposure to interest rate risk. We assess interest rate risk and manage interest rate exposure on an

ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review,

we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

Based on our Consolidated Statements of Assets and Liabilities as of June 30, 2025, the following table shows the annual

impact on net investment income of base rate changes in interest rates for our settled debt investments (considering interest

rate floors for variable rate instruments), and outstanding secured borrowings assuming no changes in our investment and

borrowing structure:

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

---

| | | | |
|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| <br>**Basis point increase (decrease)** | **Interest Income** | **Interest** <br>**Expense**<br>| **Net Interest** <br>**Income**<br>|
| Up 300 basis points | $20131 | $(8759) | $11372 |
| Up 200 basis points | $13421 | $(5840) | $7581 |
| Up 100 basis points | $6710 | $(2920) | $3790 |
| Down 100 basis points | $(6710) | $2920 | $(3790) |
| Down 200 basis points | $(13421) | $5840 | $(7581) |
| Down 300 basis points | $(20131) | $8759 | $(11372) |

---

We may hedge against interest rate and currency exchange rate fluctuations by using standard hedging instruments such as

futures, options, swaps and forward contracts and credit hedging contracts, such as credit default swaps, in each case,

subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest

rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of

investment with fixed interest rates.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**Item 4. Controls and Procedures**

***Disclosure Controls and Procedures***

As of June 30, 2025, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the

effectiveness and design and operation of our disclosure controls and procedures. Based on that evaluation, our

management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and

procedures were effective at a reasonable assurance level in timely alerting management, including the Chief Executive

Officer and Chief Financial Officer, of material information about us required to be included in periodic SEC filings.

However, in evaluation of the disclosure controls and procedures, management recognized that any controls and

procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired

control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit

relationship of possible controls and procedures.

***Management's Report on Internal Control Over Financial Reporting***

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our

internal control system is a process designed to provide reasonable assurance to our management and board of directors

regarding the preparation and fair presentation of published consolidated financial statements.

Our internal control over financial reporting includes policies and procedures that pertain to the maintenance of records

that, in reasonable detail, accurately and fairly reflect transactions recorded necessary to permit the preparation of

consolidated financial statements in accordance with U.S. generally accepted accounting principles. Our policies and

procedures also provide reasonable assurance that receipts and expenditures are being made only in accordance with

authorizations of management and our directors, and provide reasonable assurance regarding prevention or timely detection

of unauthorized acquisition, use or disposition of our assets that could have a material effect on our consolidated financial

statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems

determined to be effective can provide only reasonable assurance with respect to consolidated financial statement

preparation and presentation. Also, projections of any evaluation of effectiveness as to future periods are subject to the risk

that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies

or procedures may deteriorate.

Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2025. In making this

assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in

Internal Control — Integrated Framework issued in 2013. Based on the assessment, management believes that, as of

June 30, 2025, our internal control over financial reporting is effective based on those criteria.

***Changes in Internal Control Over Financial Reporting***

There have been no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f)

under the Exchange Act, that occurred during our most recently completed fiscal year that have materially affected, or are

reasonably likely to materially affect, our internal control over financial reporting.

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**PART II**

**Item 1. Legal Proceedings**

Neither we nor our Adviser or Administrator is currently subject to any material legal proceedings, nor, to our knowledge,

is any material legal proceeding that would affect our business threatened against us, or against our Adviser or

Administrator.

From time to time, we, our Adviser or Administrator may be a 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 these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings

will have a material effect upon our financial condition or results of operations. Our businesses are also subject to extensive

regulation, which may result in regulatory proceedings against us.

**Item 1A. Risk Factors**

In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in Item

1A (Risk Factors) in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The risks described in

our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to

us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition

and/or operating results. Other than the items discussed below, there have been no material changes known to us during the

three months ended June 30, 2025, to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-

K for the year ended December 31, 2024.

***We may invest through joint ventures, partnerships or other special purpose vehicles and investments through these***

***vehicles may entail greater risks, or risks that we otherwise would not incur, if we otherwise made such investments***

***directly.***

We may co-invest with third parties through funds, joint ventures or other entities. Such investments may involve risks not

present in investments where a third party is not involved, including the possibility that our co-venturer or partner may at

any time have other business interests and investments other than the joint venture with us, or may have different economic

or business goals. In addition, we may be liable for actions of our co-venturers or partners. Our ability to exercise control

or significant influence over management in these cooperative efforts will depend upon the nature of the joint venture

arrangement. In addition, such arrangements are likely to involve restrictions on the resale of our interest in the company.

***We may invest a portion of our assets in the securities of less established companies, early stage companies, start-ups,***

***and companies with speculative business plans.***

Although we generally seek to invest in established companies with sound historical financial performance, we may also

invest a portion of our assets in the securities of less established companies, early stage companies, start-ups and companies

with speculative business plans. Portfolio investments in such early stage companies may involve greater risks than

generally are associated with investments in more established companies. To the extent there is any public market for the

securities held by us, such securities may be subject to more abrupt and erratic market price movements than those of

larger, more established companies. Less established companies tend to have lower capitalizations and fewer resources and,

therefore, often are more vulnerable to financial failure. Such companies also may have shorter operating histories on

which to judge future performance and in many cases, if operating, will have negative cash flow. Start-up enterprises may

not have significant or any operating revenues. In addition, less mature companies could be deemed to be more susceptible

to irregular accounting or other fraudulent practices. In the event of fraud by any company in which we invest, we may

suffer a partial or total loss of capital invested in that company. The foregoing factors may increase the difficulty of valuing

such investments. There can be no assurance that any such losses will be offset by gains (if any) realized on our other

portfolio investments, and any such portfolio investment should be considered highly speculative and may result in the loss

of our entire investment therein.

We may invest in portfolio companies that may (i) have an unfavorable financial history, (ii) be operating at a loss or have

significant fluctuations in operating results, (iii) be engaged in rapidly changing business environments or (iv) need

substantial additional capital to set up internal infrastructure, hire management and personnel, support expansion or achieve

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

or maintain a competitive position. Such portfolio companies may have a greater variability of returns, and a higher risk of

failure, than more established companies. Such companies also may face intense competition, including competition from

companies with greater financial resources; more extensive development, manufacturing, marketing and service

capabilities; and a larger number of qualified managerial and technical personnel.

***We may invest a portion of our assets in real estate-related loans that may be impacted by unfavorable real estate***

***market conditions, which could decrease the value of our investments.***

The real estate-related loans we make or invest in will be at risk of defaults caused by many conditions beyond our control,

including local and other economic conditions affecting real estate values and interest rate levels. We do not know whether

the values of the property securing the real estate-related loans will remain at the levels existing on the dates of origination

of such loans. If the values of the underlying properties drop, our risk will increase and the value of our investments may

decrease. In addition, rising interest rates may also reduce the values of underlying properties.

***Our real estate-related loans will be subject to interest rate fluctuations that could reduce our returns as compared to***

***market interest rates.***

If we invest in fixed-rate, long-term real estate-related loans and interest rates rise, such loans could yield a return lower

than then-current market rates. If interest rates decrease, we will be adversely affected to the extent that real estate-related

loans are prepaid, because we may not be able to make new loans at the previously higher interest rate. If we invest in

floating-rate loans, the income from such loans will increase and decrease directly with the fluctuation in the floating rate.

***Conflicts related to other arrangements with the Adviser or its affiliates.***

We have entered into a license agreement with the Adviser under which we received a non-exclusive, royalty-free license

to use the name "Lafayette Square." In addition, we pay to the Administrator our allocable portion of certain expenses

incurred by the Administrator in performing its obligations under the Administration Agreement, such as our allocable

portion of the cost of our chief financial officer and chief compliance officer. These arrangements create conflicts of

interest that our Board must monitor.

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

All sales of unregistered securities during the six months endedJune 30, 2025 were reported in our current reports on Form

8-K filed with the SEC.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

During the quarter ended June 30, 2025, none of our officers or directors adopted or terminated any contract, instruction or

written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule

10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

**Item 6. Exhibits**

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the six

months endedJune 30, 2025 (and are numbered in accordance with Item 601 of Regulation S-K).

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

**(a)(1) and (2) Consolidated Financial Statements and Schedules**

---

| | |
|:---|:---|
| **No.** | **Description** |
| 3.1 | <u>[Certificate of Incorporation of the Registrant](https://www.sec.gov/Archives/edgar/data/0001849089/000110465921073554/tm2113860d1_ex3-1.htm)</u><sup>(1)</sup> |
| 3.2 | <u>[Amendment to Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1849089/000184908922000015/exhibit31certificateofamen.htm)</u><sup>(2)</sup> |
| 3.3 | <u>[Form of Bylaws](https://www.sec.gov/Archives/edgar/data/0001849089/000110465921073554/tm2113860d1_ex3-2.htm)</u><sup>(1)</sup> |
| 3.4 | <u>[Amendment to Bylaws](https://www.sec.gov/Archives/edgar/data/1849089/000184908922000015/exhibit32-firstamendmentto.htm)</u><sup>(3)</sup> |
| 10.1 | <u>[Senior Secured Revolving Credit Agreement dated June 18, 2024, among the Company, the subsidiary](https://www.sec.gov/ix?doc=/Archives/edgar/data/1849089/000110465924074554/tm2418111d1_8k.htm)</u><br><u>[guarantors party thereto, the lenders party thereto and ING Capital LLC, as administrative agent, lead arranger,](https://www.sec.gov/ix?doc=/Archives/edgar/data/1849089/000110465924074554/tm2418111d1_8k.htm)</u><br><u>[bookrunner and sustainability structuring agent (filed as Exhibit 10.1 to the Registrant's Current Report on Form](https://www.sec.gov/ix?doc=/Archives/edgar/data/1849089/000110465924074554/tm2418111d1_8k.htm)</u><br><u>[8-K, filed on February 3, 2022 and incorporated herein by reference).](https://www.sec.gov/ix?doc=/Archives/edgar/data/1849089/000110465924074554/tm2418111d1_8k.htm)</u><br>|
| 10.1 | <u>[Amendment No.1 to Senior Secured Revolving Credit Agreement dated September 20, 2024, among the](https://www.sec.gov/ix?doc=/Archives/edgar/data/1849089/000110465924102446/tm2424598d1_8k.htm)</u><br><u>[Company, the subsidiary guarantors party thereto, the lenders party thereto and ING Capital LLC, as](https://www.sec.gov/ix?doc=/Archives/edgar/data/1849089/000110465924102446/tm2424598d1_8k.htm)</u><br><u>[administrative agent, lead arranger, bookrunner and sustainability structuring agent (filed as Exhibit 10.1 to the](https://www.sec.gov/ix?doc=/Archives/edgar/data/1849089/000110465924102446/tm2424598d1_8k.htm)</u><br><u>[Registrant's Current Report on Form 8-K, filed on September 24, 2024 and incorporated herein by reference).](https://www.sec.gov/ix?doc=/Archives/edgar/data/1849089/000110465924102446/tm2424598d1_8k.htm)</u><br>|
| 10.1 | <u>[Amendment No.2 to Senior Secured Revolving Credit Agreement dated April 24, 2025, among the Company,](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849089/000110465925042501/tm2513555d1_8k.htm)</u><br><u>[the subsidiary guarantors party thereto, the lenders party thereto and ING Capital LLC, as administrative agent,](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849089/000110465925042501/tm2513555d1_8k.htm)</u><br><u>[lead arranger, bookrunner and sustainability structuring agent (filed as Exhibit 10.1 to the Registrant's Current](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849089/000110465925042501/tm2513555d1_8k.htm)</u><br><u>[Report on Form 8-K, filed on April 30, 2025 and incorporated herein by reference).](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849089/000110465925042501/tm2513555d1_8k.htm)</u><br>|
| 31.1 | <u>[Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities](exhibit311-lsusa2025formx.htm)</u><br><u>[Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\*](exhibit311-lsusa2025formx.htm)</u><br>|
| 31.2 | <u>[Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange](exhibit312-lsusa2025formx.htm)</u><br><u>[Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\*](exhibit312-lsusa2025formx.htm)</u><br>|
| 32.1 | <u>[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section](exhibit321-lsusa2025form10q.htm)</u><br><u>[906 of the Sarbanes-Oxley Act of 2002.\*](exhibit321-lsusa2025form10q.htm)</u><br>|
| 32.2 | <u>[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906](exhibit322-lsusa2025formx.htm)</u><br><u>[of the Sarbanes-Oxley Act of 2002.\*](exhibit322-lsusa2025formx.htm)</u><br>|

---

(1) Previously filed as part of the Registrant's Registration Statement on Form 10 (File No. 000-56289) filed on May 28,

2021 and incorporated herein by reference.

(2) Previously filed as part of Registrant's Current Report on Form 8-K filed on May 19, 2022 and incorporated herein by

reference.

(3) Previously filed as part of Registrant's Current Report on Form 8-K filed on June 8, 2023 and incorporated herein by

reference.

\*Filed herewith

**SIGNATURES**

<u>[Table](#i5dc72619deba4177a8d6fdab7d878de9_7)</u><u>[of Contents](#i5dc72619deba4177a8d6fdab7d878de9_7)</u>

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.

---

| | |
|:---|:---|
|  | **Lafayette Square USA, Inc.** |
| Date: August 1, 2025 | By: /s/ Damien Dwin |
|  | Name: Damien Dwin |
|  | Title: President and Chief Executive Officer |
| Date: August 1, 2025 | By: /s/ Seren Tahiroglu |
|  | Name: Seren Tahiroglu |
|  | Title: Chief Financial Officer |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following

persons on behalf of the Registrant and in the capacities indicated on August 1, 2025.

---

| | |
|:---|:---|
| **Name** | **Title** |
| /s/ Damien Dwin | President, Chief Executive Officer and Chairman of the Board of Directors |
| Damien Dwin |  |
| /s/ Seren Tahiroglu | Chief Financial Officer |
| Seren Tahiroglu |  |

---

## Exhibit 31.1

**Exhibit 31.1**

**Certification of Chief Executive Officer**

**Of Periodic Report Pursuant to Rule 13a-14(a) and 15d-14(a)** 

I, Damien Dwin, Chief Executive Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-Q of Lafayette Square USA, Inc. (the "Registrant");

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) 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;&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;&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;&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;&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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) 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 directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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.

------

**Exhibit 31.1**

---

| | | |
|:---|:---|:---|
| Date: August 1, 2025 | By: | /s/ Damien Dwin |
|  |  | Damien Dwin |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification of Chief Financial Officer**

**Of Periodic Report Pursuant to Rule 13a-14(a) and 15d-14(a)** 

I, Seren Tahiroglu, Chief Financial Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-Q of Lafayette Square USA, Inc. (the "Registrant");

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) 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;&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;&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;&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;&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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) 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 directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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.

------

**Exhibit 31.2**

---

| | | |
|:---|:---|:---|
| Date: August 1, 2025 | By: | /s/ Seren Tahiroglu |
|  |  | Seren Tahiroglu |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO**

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

In connection with the accompanying Quarterly Report of Lafayette Square USA, Inc. (the "Company") on Form 10-Q for the quarter ended June 30, 2025 (the "Report"), I, Damien Dwin, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 1, 2025 | By: | /s/ Damien Dwin |
|  |  | Damien Dwin |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO**

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

In connection with the accompanying Quarterly Report of Lafayette Square USA, Inc. (the "Company") on Form 10-Q for the quarter ended June 30, 2025 (the "Report"), I, Seren Tahiroglu, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 1, 2025 | By: | /s/ Seren Tahiroglu |
|  |  | Seren Tahiroglu |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

<br>