# EDGAR Filing Document

**Accession Number:** 0002089126
**File Stem:** 0001193125-26-051330
**Filing Date:** 2026-2
**Character Count:** 321704
**Document Hash:** 1d877aea7a6f33df31f194cb01f7d4ab
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-051330.hdr.sgml**: 20260213

**ACCESSION NUMBER**: 0001193125-26-051330

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 64

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260213

**DATE AS OF CHANGE**: 20260213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PennantPark Private Income Fund
- **CENTRAL INDEX KEY:** 0002089126

**ORGANIZATION NAME:**
- **EIN:** 334777837
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56787
- **FILM NUMBER:** 26632642

**BUSINESS ADDRESS:**
- **STREET 1:** 1691 MICHIGAN AVENUE
- **CITY:** MIAMI BEACH
- **STATE:** FL
- **ZIP:** 33139
- **BUSINESS PHONE:** 7862979500

**MAIL ADDRESS:**
- **STREET 1:** 1691 MICHIGAN AVENUE
- **CITY:** MIAMI BEACH
- **STATE:** FL
- **ZIP:** 33139

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

pass

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM** 10-Q

**(Mark One)**

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

**FOR THE QUARTERLY PERIOD ENDED** **DECEMBER 31,** 2025

**OR**

☐ **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:** 000-56787

------

PENNANTPARK PRIVATE INCOME FUND

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

---

| | |
|:---|:---|
| DELAWARE | 33-4777837 |
| **(State or other jurisdiction of incorporation or organization)** | **(I.R.S. Employer Identification No.)** |
| 1691 Michigan Avenue<br>Miami Beach**,** Florida | 33139 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(**786**)** 297-9500

**(Registrant's Telephone Number, Including Area Code)**

**None**

**(Former name, former address and former fiscal year, if changed since last report)**

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

---

| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol(s)** | **Name of Each Exchange on Which Registered** |
| Common Shares, par value $0.001 per | N/A | N/A |

---

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

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

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

---

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

---

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 ☒

The number of shares of the registrant's common shares, $0.001 par value per share, outstanding as of February 13, 2026 was 3,469,170.

------

**PENNANTPARK PRIVATE INCOME FUND**

**FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2025**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [<u>PART I-CONSOLIDATED FINANCIAL INFORMATION</u>](#part_i_consolidated_financial_infor) | 2 |
| [<u>Item 1. Consolidated Financial Statements</u>](#item_1_consolidated_financial_state) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Assets and Liabilities as of December 31, 2025 (unaudited) and September 30, 2025</u>](#statements_of_assets_and_liabilities) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Operations for the three months ended December 31, 2025 (unaudited)</u>](#statements_of_operations) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2025 (unaudited)</u>](#statements_of_changes_in_net_assets) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Cash Flows for the three months ended December 31, 2025 (unaudited)</u>](#statements_of_cash_flows) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Schedule of Investments as of December 31, 2025 (unaudited)</u>](#consolidated_schedule_of_investments) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Notes to Consolidated Financial Statements (unaudited)</u>](#notes_to_consolidated_financial_stmt) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Report Of Independent Registered Public Accounting Firm (PCAOB ID 49)</u>](#report_of_indpndnt_register_account_firm) | 24 |
| [<u>Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion) | 25 |
| [<u>Item 3. Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3_quantitative_and_qualitative) | 37 |
| [<u>Item 4. Controls and Procedures</u>](#item_4_controls_and_procedures) | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>PART II - OTHER INFORMATION</u>](#part_ii_other_information) | 40 |
| [<u>Item 1. Legal Proceedings.</u>](#item_1_legal_proceedings) | 40 |
| [<u>Item 1A. Risk Factors.</u>](#item_1a_risk_factors) | 40 |
| [<u>Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales_of_equity) | 40 |
| [<u>Item 3. Defaults Upon Senior Securities</u>](#item_3_defaults_upon_senior_securities) | 41 |
| [<u>Item 4. Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | 41 |
| [<u>Item 5. Other Information</u>](#item_5_other_information) | 41 |
| [<u>Item 6. Exhibits</u>](#item_6_exhibits) | 42 |
| [<u>SIGNATURES</u>](#signatures) | 44 |

---

i

------

# PART I-CONSOLID ATED FINANCIAL INFORMATION
We are filing this Quarterly Report on Form 10-Q, or the Report, in compliance with Rule 13a-13 as promulgated by the Securities and Exchange Commission, or the SEC, under the Securities Exchange Act of 1934, as amended, or the Exchange Act. In this Report, except where the context suggests otherwise, the term "1940 Act" refers to the Investment Company Act of 1940, as amended; "BDC" refers to a business development company under the 1940 Act; "Code" refers to the Internal Revenue Code of 1986, as amended; "Company," "we," "our" or "us" refers to PennantPark Private Income Fund and its wholly-owned consolidated subsidiaries; "DRIP" refers to our distribution reinvestment plan; "Investment Adviser" or "PPIFA" refers to PennantPark Private Income Fund Advisers LLC; "PennantPark Investment Administration" or "Administrator" refers to PennantPark Investment Administration, LLC; "PennantPark Investment Advisers" or "PPIA" refers to PennantPark Investment Advisers, LLC; "SPV" refers to PennantPark Private Income Fund SPV LLC, our wholly-owned financing subsidiary; "Holdings" refers to PPIF Investment Holdings LLC, our wholly-owned subsidiary organized to hold certain equity securities; "RIC" refers to a regulated investment company under the Code; "Credit Facility" refers to our senior secured revolving credit facility, as amended from time to time, with CIBC Bank USA and other lenders, or the "Lenders," entered into on October 1, 2025; "SBCAA" refers to the Small Business Credit Availability Act.

------

## Item 1. Consol idated Financial Statements
**PennantPark Private Income Fund and Subsidiaries**

**Consolidated Statements of Assets and Liabilities**

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

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **September 30, 2025** |
|  | **unaudited** |  |
| **Assets** |  |  |
| Non-Controlled, non-affiliated investments at fair value (amortized cost—$72,441 and $0, respectively) | $72546 | $— |
| Cash (cost—$64,130 and $20,000, respectively) | 64130 | 20000 |
| Cash equivalents (cost—$1,574 and $0, respectively) | 1574 |  |
| Receivable from Investment Adviser | 343 |  |
| Interest receivable | 158 |  |
| Other assets | 5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | 138756 | 20000 |
| **Liabilities** |  |  |
| Credit Facility, net (unamortized deferred financing costs of $653 and $0, respectively) | 64347 |  |
| Accrued expenses | 325 |  |
| Interest payable | 249 |  |
| Base management fee payable | 159 |  |
| Incentive fee payable | 73 |  |
| Accounts payable and other liabilities | 41 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 65194 |  |
| Commitments and contingencies (see Note 9) |  |  |
| **Net assets** |  |  |
| Common share, unlimited shares authorized, 2,909,795 and 800,000 shares issued and outstanding, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Par value $0.001 per share | 3 |  |
| Paid-in capital in excess of par value | 72840 | 20000 |
| Accumulated earnings | 719 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total net assets** | $73562 | $20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and net assets** | $138756 | $20000 |
| **Net asset value per share** | $25.28 | $25.00 |

---

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

------

**PennantPark Private Income Fund and Subsidiaries**

**Consolidated Statements of Operations**

**(in thousands, except per share data)**

**(Unaudited)**

---

| | |
|:---|:---|
|  | **Three months ended** |
|  | **December 31,<br>2025** <sup>(1)</sup> |
| **Investment income:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $1128 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total investment income** | 1153 |
| **Expenses:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and expense on credit facility | 283 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 226 |
| &nbsp;&nbsp;&nbsp;&nbsp;Base management fee | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;Administrative services expenses | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;Incentive fee | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Expenses before provision for taxes** | 893 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for taxes on net investment income | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | 917 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expenses support from the Investment Adviser (Note 3) | (343) |
| &nbsp;&nbsp;&nbsp;&nbsp;Base management fee waiver (Note 3) | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net expenses** | 539 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net investment income** | 614 |
| **Realized and unrealized gain (loss) on investments:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net change in unrealized appreciation (depreciation) on investments** | 105 |
| **Net increase (decrease) in net assets resulting from operations** | $719 |
| **Net increase (decrease) in net assets resulting from operations per common share (See Note 10)** | $0.36 |
| Net investment income per common share | $0.31 |

---

<sup>(1)</sup> No comparative information has been presented as the Company had not commenced investment activity prior to October 1, 2025.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

------

**PennantPark Private Income Fund and Subsidiaries**

**Consolidated Statements of Changes in Net Assets**

**(in thousands, except share issue data)**

**(Unaudited)**

---

| | |
|:---|:---|
|  | **Three months ended** |
|  | **December 31, 2025** <sup>(1)</sup> |
| **Net increase (decrease) in net assets resulting from operations:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income | $614 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net increase (decrease) in net assets resulting from operations** | 719 |
| **Capital activities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares issued | 52843 |
| **Net increase (decrease) in net assets** | 53562 |
| **Net assets:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period | $73562 |
| **Capital share activity:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares outstanding at beginning of period | 800000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares issued | 2109795 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares outstanding at end of period | 2909795 |

---

<sup>(1)</sup> No comparative information has been presented as the Company had not commenced investment activity prior to October 1, 2025.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

------

**PennantPark Private Income Fund and Subsidiaries**

**Consolidated Statements of Cash Flows** 

**(in thousands, except share issue data)**

**(Unaudited)**

---

| | |
|:---|:---|
|  | **Three months ended** |
|  | **December 31, 2025** <sup>(1)</sup> |
| **Cash flows from operating activities:** |  |
| Net increase (decrease) in net assets resulting from operations | $719 |
| Adjustments to reconcile net increase (decrease) in net assets resulting from |  |
| operations to net cash provided by (used in) operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | (105) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments | (72639) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales and repayments of investments | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of discount on investments | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase)/Decrease in: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable from Investment Adviser | (343) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest receivable | (158) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase/(Decrease) in: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable | 249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base management fee payable | 159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incentive fee payable | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (71451) |
| **Cash flows from financing activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings under Credit Facility | 91500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments under Credit Facility | (26500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized borrowing costs | (688) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from common shares issued | 52843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 117155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net increase (decrease) in cash and cash equivalents** | 45704 |
| **Cash and cash equivalents, beginning of period** | 20000 |
| **Cash and cash equivalents, end of period** | $65704 |

---

<sup>(1)</sup> No comparative information has been presented as the Company had not commenced investment activity prior to October 1, 2025.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

------

**PennantPark Private Income Fund and Subsidiaries**

**Consolidated Schedule of Investments**

**December 31, 2025**

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

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | **Basis Point** |  |  |  |
|  |  |  |  | **Current** | **Spread** | **Par /** |  | **Fair** |
| **Issuer Name** | **Acquisition** | **Maturity** | **Industry** | **Coupon** | **Above Index** <sup>(1)</sup> | **Shares** | **Cost** | **Value** <sup>(2)</sup> |
| **Investments in Non-Controlled, Non-Affiliated<br> Portfolio Companies - 98.6%** <sup>(3)(4)</sup> |  |  |  |  |  |  |  |  |
| **First Lien Secured Debt - 98.6% of Net Assets** |  |  |  |  |  |  |  |  |
| Aechelon Technology Inc. | 10/01/2025 | 08/16/2029 | Aerospace & Defense | 9.47% | 1M SOFR + 580 | 307 | $303 | $307 |
| Aphix Buyer, Inc | 10/03/2025 | 07/17/2031 | Commercial Services & Supplies | 8.48% | 1M SOFR + 475 | 2494 | 2491 | 2494 |
| APT Opco, LLC | 11/10/2025 | 09/30/2031 | Healthcare Providers & Services | 8.67% | 3M SOFR + 500 | 4988 | 4981 | 4925 |
| Arcfiled Acquisition Corp. | 12/15/2025 | 08/04/2029 | Aerospace & Defense | 8.84% | 3M SOFR + 500 | 4140 | 4130 | 4120 |
| Arcfiled Acquisition Corp. - Unfunded Revolver <sup>(5)(6)</sup> | 12/15/2025 | 11/30/2032 | Aerospace & Defense | - |  | 580 | - | (3) |
| Archer Lewis, LLC | 10/01/2025 | 08/28/2029 | Financial Services | 9.42% | 3M SOFR + 580 | 1216 | 1202 | 1216 |
| Argano, LLC | 10/02/2025 | 09/13/2029 | IT Services | 9.23% | 1M SOFR + 550 | 1463 | 1446 | 1478 |
| Argano, LLC - Unfunded Delayed Draw Term Loan<br> <sup>(5)(6)</sup> | 12/03/2025 | 09/13/2029 | IT Services | - |  | 6033 | - | 60 |
| By Light Professional IT Services LLC | 10/01/2025 | 07/15/2031 | IT Services | 9.22% | 1M SOFR + 550 | 2500 | 2494 | 2475 |
| Duggal Acquisition, LLC | 11/06/2025 | 09/30/2030 | Professional Services | 8.42% | 3M SOFR + 480 | 3753 | 3707 | 3753 |
| Duggal Acquisition, LLC - Unfunded Delayed Draw<br> Term Loan <sup>(5)(6)</sup> | 11/06/2025 | 09/30/2030 | Professional Services | - |  | 100 | - | - |
| Duggal Acquisition, LLC - Unfunded Revolver <sup>(5)(6)</sup> | 11/06/2025 | 09/30/2030 | Professional Services | - |  | 100 | - | - |
| GGG Midco, LLC | 10/14/2025 | 09/27/2030 | Diversified Consumer Services | 8.67% | 3M SOFR + 500 | 5308 | 5244 | 5308 |
| GGG Midco, LLC - Funded Delayed Draw Term<br> Loan C <sup>(5)(6)</sup> | 10/31/2025 | 09/27/2030 | Diversified Consumer Services | 8.67% | 3M SOFR + 500 | 318 | 314 | 318 |
| GGG Midco, LLC - Unfunded Delayed Draw Term<br> Loan C <sup>(5)(6)</sup> | 10/31/2025 | 09/27/2030 | Diversified Consumer Services | - | - | 1543 | - | - |
| GGG Midco, LLC - Unfunded Revolver <sup>(5)(6)</sup> | 10/14/2025 | 09/27/2030 | Diversified Consumer Services | - |  | 100 | - | - |
| Harris & Co, LLC | 10/01/2025 | 08/09/2030 | Financial Services | 8.72% | 1M SOFR + 500 | 2500 | 2476 | 2481 |
| Hills Distribution, Inc. | 12/05/2025 | 11/08/2029 | Distributors | 9.32% | 1M SOFR + 550 | 2925 | 2910 | 2895 |
| Hills Distribution, Inc. - Unfunded Delayed Draw Term<br> Loan <sup>(5)(6)</sup> | 12/05/2025 | 11/08/2029 | Distributors | - |  | 7075 | - | (71) |
| Hanley Wood LLC - Delayed Draw Term Loan | 10/02/2025 | 05/11/2026 | Media | 9.80% | 3M SOFR + 575 | 463 | 463 | 463 |
| MES Intermediate, Inc. | 11/21/2025 | 10/01/2027 | Distributors | 8.62% | 3M SOFR + 475 | 7144 | 7119 | 7144 |
| Municipal Emergency Services, Inc. - Unfunded<br> Revolver <sup>(5)(6)</sup> | 11/21/2025 | 10/01/2027 | Distributors | - |  | 356 | - | - |
| North American Rail Solutions LLC | 10/31/2025 | 08/29/2031 | Ground Transportation | 8.42% | 3M SOFR + 480 | 4988 | 4988 | 4963 |
| Paving Lessor Corp. | 10/03/2025 | 07/01/2031 | Commercial Services & Supplies | 8.94% | 3M SOFR + 530 | 2469 | 2463 | 2457 |
| PD Tri-State Holdco, LLC | 10/14/2025 | 10/14/2030 | Diversified Consumer Services | 8.92% | 3M SOFR + 525 | 3000 | 2975 | 2982 |
| PD Tri-State Holdco, LLC - Unfunded Delayed Draw<br> Term Loan <sup>(5)(6)</sup> | 10/15/2025 | 10/14/2030 | Diversified Consumer Services | - |  | 4182 | - | (25) |
| PD Tri-State Holdco, LLC - Unfunded Revolver <sup>(5)(6)</sup> | 10/15/2025 | 10/14/2030 | Diversified Consumer Services | - |  | 279 | - | (2) |
| Penta Group, LLC | 10/14/2025 | 07/31/2031 | Professional Services | 8.17% | 3M SOFR + 450 | 5000 | 5000 | 4975 |
| Puget Collision, LLC | 10/03/2025 | 10/03/2030 | Automobile Components | 8.42% | 3M SOFR + 480 | 2500 | 2485 | 2484 |
| Puget Collision, LLC - Funded Delayed Draw Term<br> Loan <sup>(5)(6)</sup> | 10/03/2025 | 10/03/2032 | Automobile Components | 8.42% | 3M SOFR + 480 | 633 | 629 | 611 |
| Puget Collision, LLC - Unfunded Delayed Draw Term<br> Loan <sup>(5)(6)</sup> | 10/03/2025 | 10/03/2032 | Automobile Components | - | - | 2756 | - | - |
| Puget Collision, LLC - Funded Revolver <sup>(5)(6)</sup> | 10/03/2025 | 10/03/2030 | Automobile Components | 8.42% | 3M SOFR + 480 | 68 | 68 | 65 |
| Puget Collision, LLC - Unfunded Revolver <sup>(5)(6)</sup> | 10/03/2025 | 10/03/2030 | Automobile Components | - | - | 384 | - | - |
| Rancho Health MSO, Inc. | 11/26/2025 | 06/20/2029 | Healthcare Providers & Services | 8.76% | 1M SOFR + 500 | 3000 | 2989 | 3000 |
| RTIC Subsidiary Holdings, LLC | 10/02/2025 | 05/03/2029 | Leisure Products | 9.42% | 3M SOFR + 580 | 2425 | 2391 | 2401 |
| Sabel Systems Technology Solutions, LLC | 11/03/2025 | 10/31/2030 | IT Services | 9.72% | 1M SOFR + 600 | 9273 | 9173 | 9272 |
| Sabel Systems Technology Solutions, LLC - Unfunded<br> Revolver <sup>(5)(6)</sup> | 12/19/2025 | 10/31/2030 | IT Services | - |  | 704 | - | - |
| **Total First Lien Secured Debt** |  |  |  |  |  |  | $72441 | $72546 |
| **Total Investments in Non-Controlled, Non-Affiliated<br> Portfolio Companies** <sup>(7)(8)</sup> |  |  |  |  |  |  | $72441 | $72546 |
| **Cash Equivalents - 2.1% of Net Assets** |  |  |  |  |  |  |  |  |
| State Street Institutional U.S. Government Money<br> Market Fund |  |  |  |  |  | 1574 | $1574 | $1574 |
| **Total Cash Equivalents** |  |  |  |  |  |  | $1574 | $1574 |
| **Cash - 87.2% of Net Assets** |  |  |  |  |  |  |  |  |
| Cash |  |  |  |  |  | 64130 | $64130 | $64130 |
| **Total Cash** |  |  |  |  |  |  | $64130 | $64130 |
| **Total Investments, Cash Equivalents and Cash - 187.9% of Net Assets** |  |  |  |  |  |  | $138145 | $138250 |
| **Liabilities in Excess of Other Assets - (87.9)% of Net Assets** |  |  |  |  |  |  |  | (64688) |
| **Net Assets - 100%** |  |  |  |  |  |  |  | 73562 |

---

(1)Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable Secured Overnight Financing Rate, or "SOFR", or Prime rate, or "P, or Sterling Overnight Index Average, or "SONIA". The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. SOFR loans are typically indexed to a 30-day, 90-day or 180-day SOFR rates (1M S, 3M S, or 6M S, respectively) at the borrower's option. SONIA loans are typically indexed daily for GBP loans with a quarterly frequency payment. All securities are subject to a SOFR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.

(2)Valued based on our accounting policy (See Note 2). The value of all securities was determined using significant unobservable inputs (See Note 5).

(3)The provisions of the 1940 Act classify investments based on the level of control that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be "non-controlled" when the Company owns 25% or less of the portfolio company's voting securities and "controlled" when the Company owns more than 25% of the portfolio company's voting securities.

(4)The provisions of the 1940 Act classify investments further based on the level of ownership that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as "non-affiliated" when the Company owns less than 5% of a portfolio company's voting securities and "affiliated" when the Company owns 5% or more of a portfolio company's voting securities.

(5)Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.

(6)The securities, or a portion thereof are not pledged as collateral under the Credit Facility and not held through SPV.

(7)As of December 31, 2025, all investments were in U.S. companies and total cost, fair value, and percentage of Net Assets for the U.S companies were $72.4 million, $72.6 million, and 98.6%.

(8)All of our investments are not registered under the 1933 Act and have restrictions on resale.

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements**

**December 31, 2025**

**(UNAUDITED)**

**1. ORGANIZATION** 

PennantPark Private Income Fund (the "Company") was organized as a Delaware statutory trust on April 24, 2025, and commenced operations on September 16, 2025. The Company is a closed-end, externally managed, non-diversified investment company that has elected to be treated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). On October 10, 2025, the Company filed a registration statement on Form 10 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), to register its securities pursuant to Section 12(g) of the Exchange Act.

The Company's investment objective is to generate both current income and capital appreciation while seeking to preserve capital. The Company seeks to achieve its investment objective by investing primarily in U.S. middle-market companies in the form of first lien secured debt, and, to a lesser extent, second lien secured debt, subordinated debt and equity investments.

On September 16, 2025, the Company entered into an investment advisory management agreement (the "Investment Management Agreement") with PennantPark Investment Advisers, LLC ("PPIA"). On October 17, 2025, the Company's board of trustees approved the assignment of the Investment Management Agreement to PennantPark Private Income Fund Advisers LLC, a wholly-owned subsidiary of PPIA ("PPIFA" or the "Investment Adviser").

On October 17, 2025, the Company entered into an administration agreement (the "Administration Agreement") with PennantPark Investment Administration, LLC (the "Administrator") to serve as the Company's administrator.

PennantPark Private Income Fund SPV, LLC ("SPV"), is a wholly-owned financing subsidiary organized in Delaware as a limited liability company on August 26, 2025. The Company formed the SPV in order to establish the Credit Facility. See Note 8.

PPIF Investment Holdings LLC ("Holdings"), is a wholly-owned subsidiary organized in Delaware as a limited liability company on October 7, 2025. Holdings will allow the Company to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes.

The Company has offered and intends to continue to offer and sell shares in a private placement in the United States under the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") and Regulation D promulgated thereunder, Regulation S under the Securities Act and other exemptions from the registration requirements of the Securities Act (the "Private Offering"). Investors who acquire shares in our private placement are required to complete, execute and deliver a subscription agreement (a "Subscription Agreement"), and related documentation, which include customary representations and warranties, certain covenants and restrictions and indemnification provisions.

On June 30, 2025, PennantPark Private Holdings, LP ("Private Holdings"), an affiliate of the Investment Adviser purchased 400 shares of the Company's common share, par value $0.001 per share for an aggregate purchase price of $10,000.

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**2. SIGNIFICANT ACCOUNTING POLICIES**

The preparation of the Company's consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"), requires management to make estimates and assumptions that affect the reported amount of the Company's assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reported period. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of consolidated financial statements have been included. Changes in the economic and regulatory environment, financial markets, the credit worthiness of the Company's portfolio companies and any other parameters used in determining these estimates and assumptions could cause actual results to differ from these estimates and assumptions. The Company eliminated intercompany balances and transactions. References to the Financial Accounting Standards Board's, or (the "FASB's"), Accounting Standards Codification, as amended (the "ASC"), serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the consolidated financial statements are issued.

The Company's consolidated financial statements are prepared in accordance with GAAP, consistent with ASC Topic 946, Financial Services – Investment Companies, and pursuant to the requirements for reporting on Form 10-K/Q and Articles 6, 10 and 12 of Regulation S-X, as appropriate. In accordance with Article 6-09 of Regulation S-X, the Company has provided a consolidated statement of changes in net assets in lieu of a Consolidated Statement of Changes in Stockholders' Equity.

The Company's significant accounting policies consistently applied are as follows:

***Consolidation***

As permitted under Regulation S-X and as explained by ASC paragraph 946-810-45-3, the Company will generally not consolidate its investment in a company other than an investment company wholly-owned subsidiary or a controlled operating company whose business consists of providing services to us. Accordingly, the Company has consolidated the results of the SPV in our consolidated financial statements. As of December 31, 2025, Holdings was organized but had not commenced operations, accordingly there were no operational results to consolidate in these consolidated financial statements.

***Segment Reporting***

In accordance with ASC Topic 280 - Segment Reporting, the Company has determined that it has a single reporting segment and operating unit structure. 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 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. The CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primary based on the Company's net increase (decrease) in net assets resulting from operations ("Net Income") and net investments income ("NII"). The CODM utilizes Net Income and NII as the key metrics in determining the amount of dividends to be distributed to the Company's shareholders. As the Company's operations comprise of single reporting segment, the segment assets are reflected on the accompanying Consolidated Statements of Assets and Liabilities as "total assets" and significant segment expenses are listed on accompanying Consolidated Statements of Operations.

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**2. SIGNIFICANT ACCOUNTING POLICIES (continued)**

***Organization and Offering Costs***

Organization costs consist of costs incurred to establish the Company and enable it legally to do business. Organization costs are expensed as incurred. Offering costs consist of costs incurred in connection with the offering of common shares of the Company. Offering costs are capitalized as a deferred charge and amortized to expense on a straight-line basis over 12 months.

Organizational expenses will include, without limitation, the cost of formation, including legal fees related to the creation and organization of the Company and its subsidiaries, its and their related documents of organization and the Company's election to be regulated as a BDC and the preparation of the registration statement.

Offering expenses will include, without limitation, expenses related to offerings, printing and other offering and marketing costs, including the fees of professional advisors, as well as the expenses of the Investment Adviser (as defined below) in negotiating and documenting other arrangements with the initial investors in the Company.

On October 29, 2025, the Company entered into an Expense Holiday Agreement with the Investment Adviser pursuant to which the Investment Adviser agreed bear and pay the Company's organization and offering costs until the Company receives $300.0 million in gross proceeds from the sale of shares, excluding shares purchased by Private Holdings and by the Company's trustees and officers (the "Reimbursement Hurdle"). The Company has no obligation to reimburse the Investment Adviser for such advanced costs until the Company reaches the Reimbursement Hurdle. Once the Company has met the Reimbursement Hurdle it will record organization and offering costs up to an amount of $1.5 million (the "Organization and Offering Cap"). Organization and offering costs in excess of the Organization and Offering Cap will be borne by the Investment Adviser. Total organization and offering costs paid by the Investment Adviser through December 31, 2025 were $1.7 million. Organization and offering costs in excess of the Organization and Offering Cap through December 31, 2025 were $0.2 million and not subject to recoupment by the Investment Adviser. The Company will not reimburse the Investment Adviser for any recorded organization and offering costs until the later of the second anniversary of the Expense Holiday Agreement (the "Second Anniversary Date") or the Company meeting the Reimbursement Hurdle. The Expense Holiday Agreement was effective as of September 16, 2025. See Note 3 for details of the Company's Expense Holiday Agreement.

***Foreign Currency Translation***

Our books and records are maintained in U.S. dollars. As of December 31, 2025, the Company held no investments denominated in a foreign currency. Any foreign currency amounts are translated into U.S. dollars on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Fair value of investment securities, other assets and liabilities – at the exchange rates prevailing at the end of the applicable period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Purchases and sales of investment securities, income and expenses – at the exchange rates prevailing on the respective dates of such transactions.

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair value of investments and liabilities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.

Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices to be more volatile than those of comparable U.S. companies or U.S. government securities.

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**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**2. SIGNIFICANT ACCOUNTING POLICIES (continued)**

***Security Transactions, Revenue Recognition, and Realized/Unrealized Gains or Losses***

Security transactions are recorded on a trade-date basis. The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized, but considering prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in the fair values of our portfolio investments during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

The Company records interest income on an accrual basis to the extent that the Company expects to collect such amounts. For loans and debt investments with contractual payment-in-kind ("PIK") interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, the Company will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. The Company does not accrue as a receivable interest on loans and debt investments if the Company has reason to doubt our ability to collect such interest. Loan origination fees, original issue discount, ("OID"), and market discount or premium, which the Company does not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. The Company records prepayment penalties earned on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that the Company expects to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned. Litigation settlements are accounted for in accordance with the gain contingency provisions of ASC Subtopic 450-30, Gain Contingencies, or ASC 450-30.

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or if there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be 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, are likely to remain current. As of December 31, 2025, the Company had no portfolio company investments on non-accrual status.

***Investment Valuations***

The Company expects that there may not be readily available market values for many of the investments, which are or will be in our portfolio, and the Company values such investments at fair value as determined in good faith by or under the direction of our board of trustees using a documented valuation policy and a consistently applied valuation process, as described in these financial statements. With respect to investments for which there is no readily available market value, the factors that the board of trustees may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company's ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Company considers the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the difference may be material. See Note 5.

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**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**2. SIGNIFICANT ACCOUNTING POLICIES (continued)**

Our portfolio generally consists of illiquid securities, including debt and equity investments. With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, our board of trustees undertakes a multi-step valuation process each quarter, as described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of our Investment Adviser responsible for the portfolio investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Preliminary valuation conclusions are then documented and discussed with the management of the Investment Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Our board of trustees also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review management's preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The audit committee of our board of trustees reviews the valuations of our Investment Adviser and those of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Our board of trustees discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our Investment Adviser, the respective independent valuation firms and the audit committee.

Our board of trustees generally uses market quotations to assess the value of our investments for which market quotations are readily available. The Company obtains these market values from independent pricing services or at bid prices obtained from at least two brokers or dealers, if available, or otherwise from a principal market maker or a primary market dealer. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If the board of trustees has a bona fide reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.

***Income Taxes***

Prior to November 1, 2025, the Company was classified as partnership for U.S. federal income tax purposes. The Company elected to be classified as a corporation for U.S. federal income tax purposes, effective as of November 1, 2025. As a corporation, the Company generally would be subject to entity-level corporate income tax on our taxable income and gains, regardless of whether the Company makes distributions to our shareholders. However, the Company intends to operate so as to qualify and elect to be treated as a regulated investment company ("RIC") in accordance with Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code") for its fiscal and taxable year ending September 30, 2026. The Company intends to qualify annually thereafter as a RIC.

In this regard, the Company accounts for income taxes using the asset and liability method prescribed by ASC Topic 740, Income Taxes, or ASC 740. Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Based upon our qualification and election to be treated as a RIC for U.S federal income tax purposes, the Company typically does not incur any material federal income taxes. However, the Company may choose to retain a portion of our calendar year income, which may result in the imposition of a federal excise tax, or the Company may incur taxes through the Holdings. For the three months ended December 31, 2025, the Company recorded a provision for taxes on net investment income of $24,050, pertaining to federal excise tax.

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**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**2. SIGNIFICANT ACCOUNTING POLICIES (continued)**

The Company recognizes the effect of a tax position in our consolidated financial statements in accordance with ASC 740 when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the applicable tax authority. Tax positions not considered to satisfy the "more-likely-than-not" threshold would be recorded as a tax expense or benefit. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. There were no tax accruals relating to uncertain tax positions and no amounts accrued for any related interest or penalties with respect to the periods presented herein. The Company's determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof. Although the Company files both federal and state income tax returns, the Company's major tax jurisdiction is federal.

For the three months ended December 31, 2025, the Company recognized a provision for corporate income taxes of zero and no provision for corporate income taxes was accrued as a deferred tax liability on the Consolidated Statements of Assets and Liabilities relating to unrealized gain on investments.

Because U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and net realized gains recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the consolidated financial statements of assets and liabilities to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

***Distributions and Capital Transactions***

Distributions to holders of our common shares are recorded on the ex-dividend date. The amount to be paid, if any, as a distribution is determined by the board of trustees each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, may be distributed at least annually. The tax attributes for distributions will generally include ordinary income and capital gains, but may also include certain tax-qualified dividends and/or a return of capital.

***Recent Accounting Pronouncements***

In December 2023, the FASB issued ASU 2023 - 09 "Improvements to Income Tax Disclosures" ("ASU 2023 – 09"). ASU 2023 - 09 intends to improve the transparency of income tax disclosures. ASU 2023 - 09 is effective for fiscal years beginning after December 15, 2024. The Company has adopted ASU 2023-09 effective December 31, 2025 and concluded that the application of this guidance did not have a material impact on its consolidated financial statements.

**3. AGREEMENTS AND RELATED PARTY TRANSACTIONS**

***Investment Management Agreement***

Under the Investment Management Agreement, the Investment Adviser, subject to the overall supervision of the Company's board of trustees, manages the day-to-day operations of and provides investment advisory services to the Company. For providing these services, the Investment Adviser receives a fee from the Company, consisting of two components - a base management fee and an incentive fee.

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**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**3. AGREEMENTS AND RELATED PARTY TRANSACTIONS (continued)**

***Base Management Fee***

The base management fee ("Base Management Fee") will be calculated at an annual rate of 1.25% of the Company's average adjusted net assets and is payable quarterly in arrears. For purposes of the Investment Management Agreement, "adjusted net assets" means the Company's total assets less liabilities determined on a consolidated basis in accordance with GAAP. The Base Management Fee will be calculated based on the average adjusted value of the Company's net assets at the end of the two most recently completed calendar quarters and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. For the three months ended December 31, 2025, the Company recorded $158,997 of net Base Management Fee expense, which is comprised of gross Base Management Fee of $193,686, net of $34,689 management fees waived by the Investment Adviser.

*Incentive Fee*

The incentive fee has two parts, as follows: The first part is calculated and payable quarterly in arrears based on the Company's Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. For this purpose, "Pre-Incentive Fee Net Investment Income" means interest income, dividend income and any other income, including any other fees (other than fees for providing managerial assistance) such as amendment, commitment, origination, prepayment penalties, structuring, diligence and consulting fees or other fees received from portfolio companies, accrued during the calendar quarter, minus the Company's operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement, and any interest expense or amendment fees under any credit facility and distribution paid on any issued and outstanding preferred shares, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero-coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a percentage of the value of the Company's net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of one and one-quarter-of-one percent (1.25%) per quarter (five percent (5.00%) annualized). The Company pays the Investment Adviser an incentive fee with respect to the Company's Pre-Incentive Fee Net Investment Income in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which the Company's Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of one and one-quarter-of-one percent (1.25%) per quarter (five percent (5.00%) annualized), (2) 100% of the Company's Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 1.4285% in any calendar quarter (5.7140% annualized) (the Company refers to this portion of the Company's Pre-Incentive Fee Net Investment Income (which exceeds the hurdle but is less than 1.4285%) as the "catch- up," which is meant to provide the Company's Investment Adviser with 12.50% of the Company's Pre-Incentive Fee Net Investment Income, as if a hurdle did not apply, if this net investment income exceeds 1.4285% in any calendar quarter), and (3) 12.50% of the amount of the Company's Pre-Incentive Fee Net Investment Income, if any, that exceeds 1.4285% in any calendar quarter. These calculations are pro-rated for any share issuances or repurchases during the relevant quarter, if applicable.

The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement, as of the termination date) and equals 12.50% of the Company's realized capital gains, if any, on a cumulative basis from inception through the end of each 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 gain incentive fees. For the three months ended December 31, 2025, the Company recorded $72,810 of incentive fee expense on the Consolidated Statements of Operations, of which $59,730 is attributable to incentive fee expense on net investment income and $13,080 is attributable to incentive fee expense on capital gains.

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**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**3. AGREEMENTS AND RELATED PARTY TRANSACTIONS (continued)**

***Management Fee Waiver Agreement***

The Company has entered into a management fee waiver agreement with the Investment Adviser (the "Management Fee Waiver"). The Investment Adviser has agreed to fully waive Base Management Fees and Incentive Fees payable to the Investment Adviser under the Investment Management Agreement through October 31, 2025, the date of the Company's election to be regulated as a BDC under the 1940 Act.

The Base Management Fees and Incentive Fees payable by the Company after the termination of the Management Fee Waiver will be calculated as discussed above. The fees waived pursuant to the Management Fee Waiver are not subject to recoupment by the Investment Adviser.

For the three months ended December 31, 2025, the Investment Adviser waived management fees of approximately $34,689, which is reflected as a reduction of the Base Management Fee in the accompanying Consolidated Statements of Operations.

***Administration Agreement***

Under the Administration Agreement, the Administrator provides administrative services and office facilities to the Company. For providing these services, facilities and personnel, the Company has agreed to reimburse the Administrator for its allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent, technology systems, insurance and the Company's allocable portion of the cost of compensation and related expenses of the Company's Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs.

Under the Administration Agreement, the Administrator may be reimbursed by the Company for the costs and expenses to be borne by the Company set forth above to include the costs and expenses allocable with respect to the provision of in-house legal, tax, or other professional advice and/or services to the Company, including performing due diligence on its prospective portfolio companies as deemed appropriate by the Administrator, where such in-house personnel perform services that would be paid by the Company if outside service providers provided the same services, subject to the Board's oversight.

Pursuant to a sub-administration services agreement between the Administrator and State Street (the "Sub-Administration Agreement"), State Street serves as the sub-administrator of the Company and is paid by the Administrator.

For the three months ended December 31, 2025, the Company recorded $83,950 administrative services expenses.

***Expense Limitation and Reimbursement Agreement*** 

On October 29, 2025, the Company entered into an Expense Limitation and Reimbursement Agreement, (the "Expense Limitation Agreement") with the Investment Adviser. Pursuant to the Expense Limitation Agreement, the Investment Adviser has agreed to reimburse expenses of the Company so that certain of the Company's expenses (the "Specified Expenses") will not exceed an annual rate of 1.25% of the of the Company's net assets (the "Expense Limitation"). Through December 31, 2025, the Investment Adviser has agreed to cover all Specified Expenses.

Specified Expenses is defined to include all expenses incurred in the business of the Company, including organizational costs, with the exception of (i) the Base Management fee, (ii) the incentive fee, (iii) brokerage costs, (iv) dividend/interest payments (including any dividend payments, interest expenses, commitment fees, or other expenses related to any leverage incurred by the Company), (v) taxes, (vi) extraordinary expenses (as determined in the sole discretion of the Investment Adviser), and (vii) the indirect costs of investing in other investment companies including private funds that rely on Section 3(c)(1) or Section 3(c)(7) of the 1940 Act (to the extent applicable).

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**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**3. AGREEMENTS AND RELATED PARTY TRANSACTIONS (continued)**

The Company has agreed to repay the amount reimbursed by the Investment Adviser when and if requested by the Investment Adviser, as promptly as possible, on a quarterly basis, but only if and to the extent that such reimbursement does not cause the Fund's Specified Expenses plus recoupment to exceed an annual rate of 1.25% of the value of the Company's net assets (or, if a lower expense limit is in effect, such lower limit) within the 36-month period after the Investment Adviser bears the expense ("Excess Expenses"). Unless renewed by the Investment Adviser, the Expense Limitation Agreement will terminate on September 30, 2026.

For the three months ended December 31, 2025, the Investment Adviser provided expense support of $0.3 million to the Company, all subject to recoupment pursuant to the terms of the Expense Limitation Agreement. For the three months ended December 31, 2025, the Company made no recoupment payments to the Investment Adviser.

The following table reflects the Excess Expenses that may be subject to reimbursement pursuant to the Expense Limitation Agreement ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Quarter Ended** | **Expense<br>support from<br>the Investment<br>Adviser** | **Reimbursement<br>Payments to the<br>Investment<br>Adviser** | **Unreimbursed<br>Expense support** | **Eligible for<br>Reimbursement<br>Through** |
| December 31, 2025 | $343.2 | $— | $343.2 | December 31, 2028 |

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***Other Related Party Transactions***

The Company, the Investment Adviser and certain other affiliates have been granted an order for exemptive relief by the SEC for the Company to co-invest with other funds managed by the Investment Adviser. If the Company co-invests with other affiliated funds, our Investment Adviser would not receive compensation except to the extent permitted by the exemptive order and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.

There were no transactions subject to Rule 17a-7 under the 1940 Act during the three months ended December 31, 2025.

**4. INVESTMENTS**

Purchases of investments for the three months ended December 31, 2025 totaled $72.6 million. Sales and repayments of investments for the same period totaled $0.2 million.

Investments and cash and cash equivalents consisted of the following ($ in thousands):

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| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** |
| **Investment Classification** | **Cost** | **Fair Value** |
| First lien | $72441 | $72546 |
| Cash and cash equivalents | 65704 | 65704 |
| Total investments and cash and cash equivalents | $138145 | $138250 |

---

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**4. INVESTMENTS (continued)**

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets (excluding cash and cash equivalents) in such industries ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investment Classification** | **Cost** | **Fair Value** | **Fair Value Percentage** | **Net asset value Percentage** |
| IT Services | $13113 | $13285 | 18.3% | 18.1% |
| Distributors | 10029 | 9968 | 13.7% | 13.5% |
| Professional Services | 8707 | 8728 | 12.0% | 11.9% |
| Diversified Consumer Services | 8533 | 8581 | 11.8% | 11.7% |
| Healthcare Providers & Services | 7970 | 7925 | 10.9% | 10.8% |
| Ground Transportation | 4988 | 4963 | 6.9% | 6.7% |
| Commercial Services & Supplies | 4954 | 4951 | 6.8% | 6.6% |
| Aerospace & Defense | 4433 | 4424 | 6.1% | 6.0% |
| Financial Services | 3678 | 3697 | 5.1% | 5.1% |
| Automobile Components | 3182 | 3160 | 4.5% | 4.3% |
| Leisure Products | 2391 | 2401 | 3.3% | 3.3% |
| Media | 463 | 463 | 0.6% | 0.6% |
| Total | $72441 | $72546 | 100.0% | 98.6% |

---

**5. FAIR VALUE OF FINANCIAL INSTRUMENTS**

Fair value, as defined under ASC Topic 820 ("ASC 820") is the price that the Company would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment or liability. ASC 820 emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of us. Unobservable inputs reflect the assumptions market participants would use in pricing an asset or liability based on the best information available to us on the reporting period date.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:

Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets, or that are quoted prices for identical or similar assets or liabilities in markets that are not active and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term, if applicable, of the financial instrument.

Level 3: Inputs that are unobservable for an asset or liability because they are based on our own assumptions about how market participants would price the asset or liability.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Generally, most of our investments are classified as Level 3. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**5. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued)**

The inputs into the determination of fair value may require significant management judgment or estimation. Even if observable market data is available, such information may be the result of consensus pricing information, disorderly transactions or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence were available. Corroborating evidence that would result in classifying these non-binding broker/dealer bids as a Level 2 asset includes observable orderly market-based transactions for the same or similar assets or other relevant observable market-based inputs that may be used in pricing an asset.

Our investments are generally structured as floating rate loans, mainly first lien secured debt, but also may include second lien secured debt, subordinated debt and equity investments. The transaction price, excluding transaction costs, is typically the best estimate of fair value at inception. Ongoing reviews by our Investment Adviser and independent valuation firms are based on an assessment of each underlying investment, incorporating valuations that consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information including comparable transactions, performance multiples and yields, among other factors. These non-public investments valued using unobservable inputs are included in Level 3 of the fair value hierarchy.

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in our ability to observe valuation inputs may result in a reclassification for certain financial assets or liabilities.

In addition to using the above inputs to value cash equivalents and investments, the Company employs the valuation policy approved by our board of trustees that is consistent with ASC 820. Consistent with our valuation policy, the Company evaluates the source of inputs, including any markets in which our investments are trading, in determining fair value. See Note 2.

As outlined in the table below, some of our Level 3 investments using a market approach valuation technique are valued using the average of the bids from brokers or dealers. The bids include a disclaimer, may not have corroborating evidence, may be the result of a disorderly transaction and may be the result of consensus pricing. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If the board of trustees has a bona fide reason to believe any such bids do not reflect the fair value of an investment, it may independently value such investment by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available. In accordance with ASC 820, the Company does not categorize any investments for which fair value is measured using the net asset value per share as a practical expedient within the fair value hierarchy.

The remainder of our investment portfolio is valued using a market comparable or an enterprise market value technique. With respect to investments for which there is no readily available market value, the factors that the board of trustees may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company's ability to make payments, its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the pricing indicated by the external event, excluding transaction costs, is used to corroborate the valuation. When using earnings multiples to value a portfolio company, the multiple used requires the use of judgment and estimates in determining how a market participant would price such an asset. These non-public investments using unobservable inputs are included in Level 3 of the fair value hierarchy. Generally, the sensitivity of unobservable inputs or combination of inputs such as industry comparable companies, market outlook, consistency, discount rates and reliability of earnings and prospects for growth, or lack thereof, affects the multiple used in pricing an investment. As a result, any change in any one of those factors may have a significant impact on the valuation of an investment. Generally, an increase in a market yield will result in a decrease in the valuation of a debt investment, while a decrease in a market yield will have the opposite effect. Generally, an increase in earnings before interest, taxes, depreciation and amortization ("EBITDA") multiple will result in an increase in the valuation of an investment, while a decrease in an EBITDA multiple will have the opposite effect.

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**5. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued)**

Our Level 3 valuation techniques, unobservable inputs and ranges were categorized as follows for ASC 820 purposes ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Asset Category** | **Fair value at <br>December 31, 2025** | **Valuation Technique** | **Unobservable Input** | **Range of Input (Weighted Average)** <sup>(1)</sup> |
| First lien | $72546 | Market Comparable | Market Yield | 8.1% - 10.2% (8.9%) |
| Total Level 3 investments | $72546 |  |  |  |

---

<sup>(1)</sup> The weighted average disclosed in the table above was weighted by its relative fair value.

Our investments and cash and cash equivalents were categorized as follows in the fair value hierarchy for ASC 820 purposes ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value at December 31, 2025** | **Fair Value at December 31, 2025** | **Fair Value at December 31, 2025** | **Fair Value at December 31, 2025** |
| **Description** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| First lien | $72546 | $- | $- | $72546 |
| Cash equivalents | 1574 | 1574 | - | - |
| **Total investments and cash equivalents** | $74120 | $1574 | $- | $72546 |
| Credit Facility<sup>(1)</sup> | $64347 | $- | $64347 | $- |

---

<sup>(1)</sup> The Company elected not to apply the fair value option allowed by ASC 825-10 to the Credit Facility and thus the balance reported in the Consolidated Statements of Assets and Liabilities represents the carrying value, which approximates the fair value.

The tables below show a reconciliation of the beginning and ending balances for fair valued investments measured using significant unobservable inputs (Level 3) ($ in thousands):

---

| | | |
|:---|:---|:---|
|  | **For the three months ended December 31, 2025** | **For the three months ended December 31, 2025** |
| **Description** | **First lien** | **Totals** |
| **Beginning Balance** | $- | $- |
| Net change in unrealized appreciation (depreciation) | 105 | 105 |
| Purchases, net discount accretion | 72653 | 72653 |
| Proceeds from sales and repayments of<br> investments | (212) | (212) |
| **Ending Balance** | $72546 | $72546 |
| Net change in unrealized appreciation (depreciation) <br> reported within the net change in unrealized <br> appreciation (depreciation) on investments in our <br> Consolidated Statements of Operations attributable <br> to our Level 3 assets still held at the reporting date | $105 | $105 |

---

**6. TRANSACTIONS WITH AFFILIATED COMPANIES**

An affiliated portfolio company is a company in which the Company has ownership of 5% or more of its voting securities. A portfolio company is generally presumed to be a non-controlled affiliate when the Company owns at least 5% but 25% or less of its voting securities and a controlled affiliate generally when the Company owns more than 25% of its voting securities. There were no transactions with affiliates related to our funded investments for the three months ended December 31, 2025.

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**7. CASH AND CASH EQUIVALENTS**

Cash and cash equivalents represent cash invested in overnight money market funds. These temporary investments with original maturities of 90 days or less are deemed cash equivalents. Cash deposited at financial institutions is insured by the Federal Deposit Insurance Corporation ("FDIC"), up to specified limits. At times, such balances may exceed FDIC insured amounts. As of December 31, 2025, cash and cash equivalents consisted of money market funds and non-money market in the amounts of $1.6 million and $64.1 million, respectively. As of September 30, 2025, cash and cash equivalents consisted of money market funds and non-money market in the amounts of zero and $20.0 million, respectively. The Company believes it is not exposed to any significant risk of loss on its cash and cash equivalents.

**8. DEBT**

On October 17, 2025, the Company's board of trustees approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Consolidated Appropriations Act of 2018 (which includes the Small Business Credit Availability Act, or SBCAA). As a result, the asset coverage requirement applicable to the Company for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity), subject to compliance with certain disclosure requirements. As of December 31, 2025, the Company had $65.0 million debt and its corresponding asset coverage ratio, as computed in accordance with the 1940 Act, was 213%.

As of September 30, 2025, the Company had no borrowings.

***Credit Facility***

In October 2025, the SPV entered into a $65.0 million senior secured revolving credit facility with CIBC Bank USA (the "Credit Facility"). Pursuant to the terms of the Credit Facility the revolving period ends October 2028, the maturity date is October 2030 and borrowings are secured by all of the assets held by the SPV.

From October 2025 through October 2026, the Credit Facility bears interest at SOFR (or an alternative risk-free floating interest rate index) plus 187.5 basis points. After October 2026 through the revolving period, the applicable margin ranges from 187.5 to 200 basis points, depending on utilization. Following the revolving period, the applicable margin resets to 212.5 basis points for the remaining two years, maturing in October 2030. The Credit Facility is secured by all assets of the SPV. Both the Company and the SPV have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.

The Credit Facility contains covenants, including, but not limited to, restrictions of loan size, industry requirements, average life of loans, geographic and individual portfolio concentrations, minimum portfolio yield and loan payment frequency. Additionally, the Credit Facility requires the maintenance income ratio as well as restrictions on certain payments and issuance of debt. As of December 31, 2025, the SPV had $65.0 million in borrowings outstanding under the Credit Facility and zero of available borrowing capacity subject to leverage and borrowing base limitations. As of December 31, 2025, the Credit Facility had a weighted average interest rate of 5.6%. As of December 31, 2025, the Company was in compliance with the terms of the Credit Facility.

**9.** COMMITMENTS AND CONTINGENCIES

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

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**9. COMMITMENTS AND CONTINGENCIES (continued)**

Unfunded debt and equity investments, if any, are disclosed in the Consolidated Schedules of Investments. Under these arrangements, the Company may be required to supply a letter of credit to a third party if the portfolio company were to request a letter of credit. As of December 31, 2025, the Company had $24.2 million in commitments to fund investments.

Organizational and offering costs of the Company paid by the Investment Adviser will be subject to reimbursement by the Investment Adviser when such reimbursement is probable. The reimbursement to the Investment Adviser is limited to the Organization and Offering Cap under the Expense Holiday Agreement. Organization and offering costs in excess of the Organization and Offering Cap will be borne by the Investment Adviser and not subject to recoupment. As the Company has not yet met the Reimbursement Hurdle, no such costs have been recorded.

**10. NET ASSETS**

**Change in Net Assets from Operations**

The following information sets forth the computation of basic and diluted per share net increase (decrease) in net assets resulting from operations ($ in thousands, except per share data):

---

| | | |
|:---|:---|:---|
|  | **For the three months ended December 31, 2025** | **For the three months ended December 31, 2025** |
| Numerator for net increase (decrease) in net assets resulting from operations | $— | 719 |
| Denominator for basic and diluted weighted average shares |  | 2005019 |
| Basic and diluted net increase (decrease) in net assets resulting from operations per common share<br> from operations | $— | 0.36 |

---

***Capital Activity***

The Company has authority to issue an unlimited number common shares and preferred shares. The following table summarizes total shares issued (including through the Company's distribution reinvestment plan ("DRIP")), related amounts and offering price for the share issuances during the three months ended December 31, 2025 ($ in thousands, except per share data):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Share Issuance Date** | **Shares Issued** | **Amount** | **Offering Price** | **Offering Price** |
| October 31, 2025 | 1000000 | 25000 | $— | 25.00 |
| November 1, 2025 | 481936 | 12070 |  | 25.04 |
| December 1, 2025 | 627859 | 15773 |  | 25.12 |
| Total issuance of shares | 2109795 | $52843 |  |  |

---

***Share Repurchase Program***

From time to time, the board of trustees may consider implementing a quarterly share repurchase program to permit shareholders to obtain partial liquidity. If the board of trustees adopts any such share repurchase program, the board of trustees would retain the right to amend, suspend or terminate it at any time, if it deems such action to be in the Company's best interest and the best interest of the shareholders. The Company intends to conduct any such repurchase offers (also referred to as tender offers) in accordance with the requirements of the 1940 Act and Rule 13e-4 under the Exchange Act. All Shares purchased by us pursuant to the terms of each tender offer will be retired and thereafter will be authorized and unissued Shares. During the three months ended December 31, 2025, the Company repurchased zero shares, pursuant to its discretionary share repurchase program.

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**11. TAXES AND DISTRIBUTIONS**

Distributions from net investment income and net realized capital gains are determined in accordance with U.S. federal tax regulations, which may materially differ from amounts determined in accordance with GAAP. These book-to-tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are reclassified to undistributed net investment income, accumulated net realized gain or paid-in-capital, as appropriate. Distributions from net realized capital gains, if any, are normally declared and paid annually, but the Company may make distributions on a more frequent basis to comply with the distribution requirements for RICs under the Code.

Distributions to shareholders are recorded on the ex-dividend date. The amount to be paid out as a dividend is determined by the board of trustees each quarter and is generally based upon the earnings estimated by management. The Company generally intends to make monthly distributions in such amounts as determined by the Company's board of trustees in its discretion.

The Company has adopted an "opt out" DRIP that will provide for reinvestment of our dividends and other distributions (net of applicable withholding tax) on behalf of our shareholders, unless a shareholder elects to receive cash. As a result, if the board of trustees authorizes, and the Company declares, a cash dividend or other distribution, then our shareholders who have not 'opted out' of our DRIP will have their cash distribution automatically reinvested in additional Shares, rather than receiving a cash distribution.

------

**PennantPark Private Income Fund and Subsidiaries**

**Notes to Consolidated Financial Statements (Continued)**

**December 31, 2025**

**(UNAUDITED)**

**12. FINANCIAL HIGHLIGHTS**

Below are the financial highlights for the three months ended December 31, 2025 ($ in thousands, except share and per share data):

---

| | |
|:---|:---|
|  | **For the three months ended December 31, 2025** |
| **Per Share Data:** |  |
| Net asset value, beginning of period | $25.00 |
| Net investment income <sup>(1)</sup> | 0.31 |
| Net change in realized and unrealized (loss) gain <sup>(1)</sup> | 0.05 |
| Net increase (decrease) in net assets resulting from operations <sup>(1)</sup> | 0.36 |
| Accretive (Dilutive) effect of common share issuance | (0.08) |
| Net asset value, end of period | $25.28 |
| Total return <sup>(2)</sup> | 1.12% |
| Shares outstanding at end of period | 2909795 |
| **Ratios / Supplemental Data:** |  |
| Ratio of gross operating expenses to average net assets (3)(4) | 5.18% |
| Ratio of debt related expenses to average net assets (5) | 2.31% |
| Ratio of gross total expenses to average net assets (3)(5) | 7.49% |
| Ratio of net expenses to average net assets (5)(6) | 4.61% |
| Ratio of net investment income to average net assets (5)(6) | 4.80% |
| Net assets at end of period | $73562 |
| Weighted average debt outstanding | $12092 |
| Weighted average debt per share <sup>(1)</sup> | $6.03 |
| Asset coverage per unit <sup>(7)</sup> | $2132 |
| Portfolio turnover rate <sup>(8)</sup> | 0.47% |

---

<sup>(1)</sup> Based on the weighted average shares outstanding for the three months ended December 31, 2025.

<sup>(2)</sup> Based on the change in net asset value per share during the period and assumes distributions, if any, are reinvested. Total return is not annualized for periods less than one year.

<sup>(3)</sup> Ratios are annualized excluding one-time costs, which are not annualized. Excludes the effect of expense support payments (reimbursements) and management fee waivers, if any.

<sup>(4)</sup> Excludes interest and expenses on Credit Facility, which are annualized.

<sup>(5)</sup> Includes interest and expenses on Credit Facility, which are annualized.

<sup>(6)</sup> Ratios are annualized excluding one-time costs, which are not annualized. Includes the effect of expense support payments (reimbursements) and management fee waivers, if any.

<sup>(7)</sup> The asset coverage ratio for a class of senior securities representing indebtedness is calculated on our total assets, less all liabilities and indebtedness not represented by senior securities, divided by the senior securities representing indebtedness at par (changed from fair value). This asset coverage ratio is multiplied by $1,000 to determine the asset coverage per unit. Ratio is not annualized.

<sup>(8)</sup> Portfolio turnover rate is calculated using the lesser of year-to-date sales or year-to-date purchases over the average of the invested assets at fair value for the periods reported. Ratio is not annualized.

**13. SUBSEQUENT EVENTS**

Subsequent events have been evaluated through the date the consolidated financial statements were issued. The Company has concluded that there are no events requiring adjustment or disclosure in the consolidated financial statements, other than as set forth below.

On January 1, 2026, the Company issued and sold 559,375 common shares for aggregate consideration of $14.1 million.

------

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and the Board of Trustees of

PennantPark Private Income Fund and its Subsidiaries

**Results of Review of Interim Financial Statements**

We have reviewed the accompanying consolidated statements of assets and liabilities of PennantPark Private Income Fund and its subsidiaries (the Company), including the consolidated schedule of investments as of December 31, 2025, the related consolidated statements of operations and changes in net assets for the three-month period ended December 31, 2025, and cash flows for the three-month period ended December 31, 2025, and the related notes to the consolidated financial statements (collectively, the interim financial information or financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), consolidated statement of assets and liabilities of the Company, as of September 30, 2025; and in our report dated November 25, 2025, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities as of September 30, 2025, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities from which it has been derived.

**Basis for Review Results**

These interim financial statements are the responsibility of the Company's management. We conducted our reviews in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

/s/ RSM US LLP

New York, New York

February 13, 2026

------

## Item 2. Management's Di scussion and Analysis of Financial Condition and Results of Operations
**FORWARD-LOOKING STATEMENTS**

This Report, including Management's Discussion and Analysis of Financial Condition and Results of Operations, contains statements that constitute forward-looking statements, which relate to us and our consolidated subsidiaries regarding future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our Company, our industry, our beliefs and our assumptions. The forward-looking statements contained in this Report involve risks and uncertainties, including statements as to:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our business prospects;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to raise capital and operate in a highly competitive market for investment opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of interest rates on our business and certain of our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the prospects of our portfolio companies and the ability of our portfolio companies to achieve their objectives, the decline or failure of which may result in our borrowers defaulting on their payments to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of our Investment Adviser to hire and retain qualified personnel, to monitor and administer our investments and to manage our future growth effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our reliance on information systems, the failure of which could result in delays or other problems with our business activities, and the susceptibility of such systems to cybersecurity threats;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to replicate historical performance of other investment companies and funds with which our professionals have been affiliated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to raise additional capital while remaining in compliance with certain annual distribution, asset coverage, asset composition and other regulatory requirements needed to maintain our status as a BDC and a RIC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the use of leverage to fund our investments and the risk that we may fail to comply with the terms governing such indebtedness or maintain certain asset coverage ratio requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our issuance of debt securities and/or preferred stock and the impact of such issuances on the value of our common shares ("Shares") or our net asset value ("NAV");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•potential conflicts of interest of our Investment Adviser and Administrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the potential dilution caused by any future issuances of subscription rights or warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of recent financial reform legislation, elevated levels of inflation and uncertainty about any future laws and regulations on our business and our portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the investment objectives and decisions advanced by the Board or the Investment Adviser which are not subject to shareholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the illiquid nature of the assets in which we invest and our valuation procedures with respect to such assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•making investments in first lien secured debt, second lien secured debt, subordinated debt and the equity of certain portfolio companies, and the risks of making such investments in privately held middle-market companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Investment Adviser's incentive to make speculative investments to earn a greater incentive fee and, in some instances, our obligation to pay incentive compensation to our Investment Adviser even after we incur a loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the potential dilution of our Shares which may result from issuances of our Shares below the then current NAV per share;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our allocation of net proceeds from offerings in ways which you may not agree and our inability to invest proceeds from offerings in new investment opportunities, which could negatively affect our financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•tax liabilities resulting from reinvestments in our Shares or from receiving our stock as a distribution;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes to political, economic or industry conditions or conditions affecting the financial and capital markets that could cause volatility or prolonged disruption of the capital markets and impact the value of our assets, including the financial and political stability of the United States and other countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our cash balances at financial institutions that exceed federally insured limits and the impact of adverse developments affecting the financial services industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of economic sanction laws in the United States and other jurisdictions which may prohibit us and our affiliates from transacting with certain countries, individuals and companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•potential litigation, whether initiated by shareholders or other parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of global climate change on the operations of our portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Company intends to invest primarily in privately held companies for which very little public information exists. Such companies are also generally more vulnerable to economic downturns and may experience substantial variations in operating results; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the privately held companies and below-investment grade securities in which the Company invests will be difficult to value and are illiquid.

We use words such as "anticipates," "believes," "expects," "intends," "seeks," "plans," "estimates" and similar expressions to identify forward-looking statements. You should not place undue influence on the forward-looking statements as our actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors in "Risk Factors" and elsewhere in this Report.

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. Important assumptions include our ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a 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.

We have based the forward-looking statements included in this Report on information available to us on the date of this Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements in this Report, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including reports on Form 10-Q/K and current reports on Form 8-K.

You should understand that under Section 27A(b)(2)(B) of the Securities Act and Section 21E(b)(2)(B) of the Exchange Act, the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act.

The following analysis of our financial condition and results of operations should be read in conjunction with our Consolidated Financial Statements and the related notes thereto contained elsewhere in this Report.

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***Overview***

We are an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes we intend to elect to be treated, and to qualify annually, as a RIC under Subchapter M of the Code. As a BDC and a RIC, we will be subject to certain constraints, including limitations imposed by the 1940 Act and the Code. We were formed in April 2025 and commenced operations in September 2025.

Our investment objective is to generate current income and capital appreciation by investing primarily in senior secured debt of U.S. middle-market companies with last twelve-month earnings of between $10 million and $50 million. We seek to create a carefully constructed portfolio that includes primarily senior secured debt of middle-market companies in the United States with last twelve-months earnings of between $10 million and $50 million. Under normal circumstances, we expect that a majority of our portfolio will consist of senior first lien loans. We will also selectively invest in second lien loans, subordinated loans, and equity of private companies.

Subject to certain regulatory limitations, including the exemptive relief order received by the Investment Adviser and certain of its affiliates from the SEC to permit greater flexibility to negotiate the terms of co-investments, we will generally be offered the opportunity to invest in transactions that are within our investment objective and strategy and within the investment objective and strategy of other BDCs and private funds managed by the Investment Adviser and its affiliates as well as the Investment Adviser's allocation policies.

Our investment activities are managed by the Investment Adviser and supervised by the Board, of which a majority of the members are independent trustees.

Under the Investment Advisory Management Agreement, the Investment Adviser, subject to the overall supervision of the Board, manages the day-to-day operations of and provides investment advisory services to the Company. For providing these services, the Investment Adviser receives a fee from the Company, consisting of two components: a base management fee and an incentive fee. Under the Administration Agreement, the Company has agreed to reimburse the Administrator for its allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and the Company's allocable portion of the costs of compensation and related expenses of the Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs. The Company's Chief Financial Officer is the Chief Financial Officer of the Administrator.

***Organization and Structure of PennantPark Private Income Fund***

The Company, a Delaware statutory trust organized in April 2025, is a closed-end, externally managed, non-diversified investment company that has elected to be treated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes we intend to elect to be treated, and intend to qualify annually, as a RIC under the Code.

We execute our investment strategy directly and through our wholly-owned subsidiaries. The term "subsidiary" means entities that primarily engage in investment activities in securities or other assets and are wholly-owned by us. The Company does not intend to create or acquire primary control of any entity which primarily engages in investment activities of securities or other assets other than entities wholly-owned by the Company. The subsidiaries comply with the provisions of Section 18 of the 1940 Act governing capital structure and leverage on an aggregate basis with the Company. Our subsidiaries comply with the provisions of Section 17 of the 1940 Act related to affiliated transactions and custody. To the extent that the Company forms a subsidiary advised by an investment adviser other than the Investment Adviser, the investment adviser to such subsidiaries will comply with the provisions of the 1940 Act relating to investment advisory contracts, including but not limited to, Section 15 of the 1940 Act, as if it were an investment adviser to the Company under Section 2(a)(20) of the 1940 Act

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Our investment activities are managed by the Investment Adviser. Under our Investment Advisory Management Agreement, we have agreed to pay our Investment Adviser an annual base management fee based on our average adjusted gross assets as well as an incentive fee based on our investment performance. We have also entered into an Administration Agreement with the Administrator. Under our Administration Agreement, we have agreed to reimburse the Administrator for our allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Financial Officer, Chief Compliance Officer, Corporate Counsel and their respective staffs. The Board, a majority of whom are independent of us and the Investment Adviser, provides overall supervision of our activities, and the Investment Adviser supervises our day-to-day activities.

Our term is perpetual. While we may consider providing liquidity in the future through a listing of our Shares on a national securities exchange or a merger of the Company with a company listed on such an exchange, which could include an affiliate of the Investment Adviser (in either case, a "Listing"), we do not currently intend to undertake a Listing, and we will not be obligated to effect a Listing or other liquidity event at any time.

***Revenues***

We generate revenue in the form of interest income on the debt securities we hold and capital gains and dividends, if any, on investment securities that we may acquire in portfolio companies. Our debt investments, whether in the form of first lien secured debt, second lien secured debt or subordinated debt, typically have a term of three to ten years and bear interest at a floating or fixed rate. Interest on debt securities is generally payable quarterly or semiannually. In some cases, our investments provide for deferred interest payments or PIK interest. The principal amount of the debt securities and any accrued but unpaid interest generally becomes due at the maturity date. In addition, we may generate revenue in the form of amendment, commitment, origination, structuring or diligence fees, fees for providing significant managerial assistance and possibly consulting fees. Loan origination fees, OID and market discount or premium are capitalized and accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned. Litigation settlements are accounted for in accordance with the gain contingency provisions of ASC Subtopic 450-30, Gain Contingencies.

***Expenses***

Our primary operating expenses will include the payment of a management fee and an incentive fee, if any, to the Investment Adviser, our allocable portion of overhead under our Administration Agreement and other operating costs as detailed below. Our management fee compensates the Investment Adviser for its work in identifying, evaluating, negotiating, consummating and monitoring our investments. We bear all other direct or indirect costs and expenses of our operations and transactions (provided such costs are not borne by the Investment Adviser pursuant to its agreement to bear certain initial organizational and offering costs as set forth above), including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the cost of calculating our NAV, including the cost of any third-party valuation services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the cost of effecting sales and repurchases of shares of our Shares and other securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence and reviews of prospective investments or complementary businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•expenses incurred by the Investment Adviser payable to third parties, including agents, consultants or other advisors, in monitoring our financial and legal affairs for the Company's and in monitoring the Company's investments; and performing due diligence (including related legal expenses) on its prospective portfolio companies and expenses related to unsuccessful portfolio acquisition efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•transfer agent and custodial fees;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fees and expenses associated with marketing efforts for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fees and expenses associated with retaining subscription platforms for the sale of Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•U.S. federal and state registration fees and any stock exchange listing fees, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fees and expenses associated with independent audits as well as internal and external legal costs;

U.S. federal, state, local and foreign taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•independent directors' fees and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•brokerage commissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fidelity bond, directors and officers, errors and omissions liability insurance and other insurance premiums;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•direct costs such as printing, mailing, long distance telephone and staff;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fees and expenses associated with independent audits and outside legal costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs associated with our reporting and compliance obligations, including under the 1940 Act and applicable U.S. federal and state securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•interest on our debt and dividends on our preferred stock, if any; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•all other expenses incurred by either the Administrator or us in connection with administering our business, including payments under our Administration Agreement that will be based upon our allocable portion of overhead, and other expenses incurred by the Administrator in performing its obligations under our Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer, Corporate Counsel and their respective staffs.

For the avoidance of doubt, the costs and expenses to be borne by the Company set forth above include the costs and expenses allocable with respect to the provision of in-house legal, tax, or other professional advice and/or services to the Company, including performing due diligence on its prospective portfolio companies, as deemed appropriate by the Administrator, where such in-house personnel perform services that would be paid by the Company if outside service providers provided the same services, subject to the Board's oversight.

Generally, during periods of asset growth, we expect our general and administrative expenses to be relatively stable or to decline as a percentage of total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities would be additive to the expenses described above.

***Private Offering of Our Shares***

We have offered and intend to continue to offer and sell Shares in a private placement in the United States under the exemption provided by Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder, Regulation S under the Securities Act and other exemptions from the registration requirements of the Securities Act (the "<u>Private Offering</u>"). Investors who acquire Shares in our private placement are required to complete, execute and deliver a subscription agreement (a "<u>Subscription Agreement</u>"), and related documentation, which include customary representations and warranties, certain covenants and restrictions and indemnification provisions. Additionally, such investors could be required to provide due diligence information for compliance with certain legal requirements. We could, from time to time, engage placement or distribution agents and incur placement or distribution fees or sales commissions in connection with the private placement of our Shares in certain jurisdictions outside the United States. The cost of any such placement or distribution fees could be borne by an affiliate of the Investment Adviser. We will not incur any such fees or commissions if our net proceeds received upon a sale of our Shares after such costs would be less than the net asset value per share of our Shares.

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Following our election to be regulated as a BDC, we commenced holding monthly closings for the Private Offering, in connection with which we will issue Shares to investors for immediate cash investment. Such monthly closings are and will be conducted in reliance on exemptions from the registration requirements of the Securities Act, including the exemption provided by Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder, Regulation S under the Securities Act and other exemptions from the registration requirements of the Securities Act.

**PORTFOLIO AND INVESTMENT ACTIVITY**

As of December 31, 2025, our portfolio consisted of $72.6 million of first lien secured debt. Our debt portfolio consisted of approximately 100% variable-rate investments. As of December 31, 2025, we had no portfolio companies on a non-accrual status. As of December 31, 2025, the portfolio had net unrealized appreciation of $0.1 million. Our overall portfolio consisted of 21 companies with an average investment size of $2.2 million and had a weighted average yield on debt investments of 8.8%, and was invested 100% in first lien secured debt.

As of September 30, 2025, the Company had not commenced investment activity.

For the three months ended December 31, 2025, we invested $72.6 million in twenty one new companies at a weighted average yield on debt investments of 8.8%. For the three months ended December 31, 2025, sales and repayments of investments totaled $0.2 million.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of our assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reported periods. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements have been included. Actual results could differ from these estimates due to changes in the economic and regulatory environment, financial markets and any other parameters used in determining such estimates and assumptions, including the credit worthiness of our portfolio companies. We may reclassify certain prior period amounts to conform to the current period presentation. We have eliminated all intercompany balances and transactions. References to ASC serve as a single source of accounting literature. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the consolidated financial statements are issued. In addition to the discussion below, we describe our critical accounting policies in the notes to our consolidated financial statements.

***Investment Valuations***

We expect that there may not be readily available market values for many of the investments, which are or will be in our portfolio, and we value such investments at fair value as determined in good faith by or under the direction of our Board using a documented valuation policy and a consistently applied valuation process, as described herein. With respect to investments for which there are no readily available market values, the factors that the Board may take into account in pricing our investments at fair value include, as relevant, the nature and realizable value of any collateral, the portfolio company's ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate or revise our valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and the differences may be material. Our portfolio generally consists of illiquid securities, including debt and equity investments. With respect to investments for which market quotations are not readily available, or for which market quotations are deemed not reflective of the fair value, our Board undertakes a multi-step valuation process each quarter (which will be brought down on a monthly basis as described below), as described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of our Investment Adviser responsible for the portfolio investment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Preliminary valuation conclusions are then documented and discussed with the management of our Investment Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Our Board also engages independent valuation firms to conduct independent appraisals of our investments for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment. The independent valuation firms review management's preliminary valuations in light of their own independent assessment and also in light of any market quotations obtained from an independent pricing service, broker, dealer or market maker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)The audit committee of our Board will review the valuations of the independent valuation firms on a quarterly basis, periodically assesses the valuation methodologies of the independent valuation firms, and responds to and supplements the valuation recommendations of the independent valuation firms to reflect any comments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Our Board discusses these valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our Investment Adviser, the respective independent valuation firms and the audit committee.

Our Board generally uses market quotations to assess the value of our investments for which market quotations are readily available. We obtain these market values from independent pricing services or at the bid prices obtained from at least two brokers or dealers, if available, or otherwise from a principal market maker or a primary market dealer. The Investment Adviser assesses the source and reliability of bids from brokers or dealers. If the Board has a *bona fide* reason to believe any such market quote does not reflect the fair value of an investment, it may independently value such investments by using the valuation procedure that it uses with respect to assets for which market quotations are not readily available.

To the extent we invest in derivative instruments in the future, such instruments would be valued in accordance with our valuation policy.

Fair value, as defined under ASC 820 is the price that we would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment or liability. ASC 820 emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of us. Unobservable inputs reflect the assumptions market participants would use in pricing an asset or liability based on the best information available to us on the reporting period date.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchies:

Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets, or that are quoted prices for identical or similar assets or liabilities in markets that are not active and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term, if applicable, of the financial instrument.

Level 3: Inputs that are unobservable for an asset or liability because they are based on our own assumptions about how market participants would price the asset or liability.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Generally, most of our investments, our 2031 Asset-Backed Debt, 2036 Asset-Backed Debt, 2036-R Asset-Backed Debt, 2037 Asset-Backed Debt, and our Credit Facility are classified as Level 3. Our 2026 Notes are classified as Level 2 as they are financial instruments with readily observable market inputs. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the price used in an actual transaction may be different than our valuation and those differences may be material.

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On December 3, 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which establishes an updated regulatory framework for determining fair value in good faith for purposes of the 1940 Act. The new rule clarifies how fund boards of directors can satisfy their valuation obligations and requires, among other things, the boards of directors to assess periodically material valuation risks and take steps to manage those risks. The rule also permits boards of directors, subject to board oversight and certain other conditions, to designate the fund's investment adviser to perform fair value determinations. The new rule went into effect on March 8, 2021 and had a compliance date of September 8, 2022. While our board of trustees has not elected to designate the Investment Adviser as the valuation designee as of the date of this report, we have adopted certain revisions to our valuation policies and procedures in order comply with the applicable requirements of Rule 2a-5 under the 1940 Act.

When the Board determines the Company's NAV as of the last day of a month that is not also the last day of a calendar quarter, the Board intends to update the value of securities with reliable market quotations to the most recent market quotation. For securities without reliable market quotations, the Investment Adviser, acting on behalf of the Board, will prepare preliminary fair value estimates for each investment consistent with the methodologies set forth in the valuation policy. If an individual asset for which reliable market quotations are not readily available is known by the Investment Adviser to have experienced a significant observable change since the most recent quarter end, an independent valuation firm may from time-to-time be asked by the Investment Adviser to provide an independent fair value range for such asset.

***Revenue Recognition***

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt investments with contractual PIK interest, which represents interest accrued and added to the loan balance that generally becomes due at maturity, we will generally not accrue PIK interest when the portfolio company valuation indicates that such PIK interest is not collectable. We do not accrue as a receivable interest on loans and debt investments if we have reason to doubt our ability to collect such interest. Loan origination fees, OID, market discount or premium and deferred financing costs on liabilities, which we do not fair value, are capitalized and then accreted or amortized using the effective interest method as interest income or, in the case of deferred financing costs, as interest expense. We record prepayment penalties on loans and debt investments as income. Dividend income, if any, is recognized on an accrual basis on the ex-dividend date to the extent that we expect to collect such amounts. From time to time, the Company receives certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees and amendment fees, and are recorded as other investment income when earned.

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

We measure realized gains or losses 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, but considering prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in fair values of our portfolio investments, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

***Foreign Currency Translation***

Our books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Fair value of investment securities, other assets and liabilities - at the exchange rates prevailing at the end of the applicable period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Purchases and sales of investment securities, income and expenses - at the exchange rates prevailing on the respective dates of such transactions.

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Although net assets and fair values are presented based on the applicable foreign exchange rates described above, we do not isolate that portion of the results of operations due to changes in foreign exchange rates on investments, other assets and debt from the fluctuations arising from changes in fair values of investments and liabilities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and liabilities.

***Payment in-kind, or PIK Interest*** 

We may have investments in our portfolio which contain a PIK interest provision. PIK interest is added to the principal balance of the investment and is recorded as income. In order for us to maintain our ability to be subject to tax as a RIC, substantially all of this income must be paid out to shareholders in the form of dividends for U.S. federal income tax purposes, even though we may not have collected any cash with respect to interest on PIK securities.

***Federal Income Taxes***

Prior to November 1, 2025, we were classified as a partnership for U.S. federal income tax purposes. We elected to be classified as a corporation for U.S. federal income tax purposes, effective as of November 1, 2025. As a corporation, we generally would be subject to entity-level corporate income tax on our taxable income and gains, regardless of whether we make distributions to our shareholders. However we intend to elect to be treated, and to qualify annually to maintain our election to be treated, as a RIC under Subchapter M of the Code. To qualify and maintain our RIC tax election, we must, among other requirements, meet certain annual source-of-income and quarterly asset diversification requirements. We also must annually distribute dividends for U.S. federal income tax purposes to our shareholders out of the assets legally available for distribution of an amount generally at least equal to 90% of the sum of our taxable net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, or investment company taxable income, determined without regard to any deduction for dividends paid.

Although not required for us to maintain our RIC tax status, in order to preclude the imposition of a 4% nondeductible U.S. federal excise tax imposed on RICs, we must distribute dividends for U.S. federal income tax purposes to our shareholders in respect of each calendar year an amount at least equal to the sum of (1) 98% of our net ordinary income (subject to certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gain net income (i.e., the excess, if any, of our capital gains over capital losses), adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of the calendar year, plus (3) any net ordinary income or capital gain net income for the preceding years that was not distributed during such years on which we did not incur any corporate income tax. In addition, although we may distribute realized net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually, out of the assets legally available for such distributions in the manner described above, we may choose to retain such net capital gains or investment company taxable income, contingent on maintaining our ability to be subject to tax as a RIC, in order to provide us with additional liquidity.

Because U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and net realized gain recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the consolidated financial statements to reflect their appropriate tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

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**RESULTS OF OPERATIONS**

Set forth below are the results of operations for the three months ended December 31, 2025.

***Investment Income***

For the three months ended December 31, 2025, investment income was $1.2 million, which was all attributable to first lien secured debt. The increase in investment income for the three months ended December 31, 2025, was primarily due to the increase in the size of our investment portfolio. As of September 30, 2025, the Company had not commenced investment activity.

***Expenses***

For the three months ended December 31, 2025, expenses totaled $0.5 million and were comprised of: $0.3 million of debt related interest and expenses, $0.2 million of professional fees, $0.2 million of base management fees, $0.1 million of performance-based incentive fees, $0.1 million of general and administrative expenses and $0.0 million of taxes offset by $0.4 million of Investment Adviser expense support and management fee waivers. The increase in expenses for the three months ended December 31, 2025, was primarily due to debt related interest and expenses and professional fees.

***Net Investment Income***

For the three months ended December 31, 2025, net investment income totaled $0.6 million or $0.31 per share. The increase in net investment income for the three months ended December 31, 2025, was primarily due to an increase in investment income partially offset by an increase in expenses.

***Net Realized Gains or Losses***

For the three months ended December 31, 2025, net realized gains (losses) totaled $0.

***Unrealized Appreciation or Depreciation on Investments and Debt***

For the three months ended December 31, 2025, we reported net change in unrealized appreciation (depreciation) on investments of $0.1 million. As of December 31, 2025, our net unrealized appreciation (depreciation) on investments totaled $0.1 million. The net change in unrealized appreciation (depreciation) on our investments was primarily due to the operating performance of the portfolio companies within our portfolio, changes in the capital market conditions of our investments and realization of investments.

***Net Change in Net Assets Resulting from Operations***

For the three months ended December 31, 2025, net increase (decrease) in net assets resulting from operations totaled $0.7 million or $0.36 per share. The net increase or (decrease) from operations for the three months ended December 31, 2025, this change was primarily due to operating performance of our portfolio and changes in capital market conditions of our investments along with change in size and cost yield of our debt portfolio and costs of financing.

**LIQUIDITY AND CAPITAL RESOURCES**

Our liquidity and capital resources are derived primarily from cash flows from operations, including income earned on our investments, proceeds from investment sales and repayments, and proceeds of securities offerings and debt financings. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from our portfolio and proceeds from public and private offerings of securities to finance our investment objectives and operations. As of December 31, 2025 in accordance with the 1940 Act, we were only allowed to borrow amounts such that we were in compliance with a 150% asset coverage ratio requirement after such borrowing.

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As of September 30, 2025, the Company had no borrowings.

On October 17, 2025, the Board approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Consolidated Appropriations Act of 2018 (which includes the Small Business Credit Availability Act, or SBCAA). As a result, the asset coverage requirement applicable to the Company for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (*i.e.*, $2 of debt outstanding for each $1 of equity), subject to compliance with certain disclosure requirements. As of December 31, 2025, the Company had $65.0 million outstanding borrowing under the Credit Facility and its corresponding asset coverage ratio, as computed in accordance with the 1940 Act, was 213%.

In October 2025, PPIF SPV entered into a $65.0 million senior secured revolving credit facility with CIBC Bank USA (the "Credit Facility"). Pursuant to the terms of the Credit Facility the revolving period ends October 2028, the maturity date is October 2030 and borrowings are secured by all of the assets held by PPIF SPV.

From October 2025 through October 2026, the Credit Facility bears interest at SOFR (or an alternative risk-free floating interest rate index) plus 187.5 basis points. After October 2026 and through the revolving period ending in October 2028, the applicable margin will range from 187.5 to 200 basis points, depending on utilization. Following the revolving period, the applicable margin will reset to 212.5 basis points for the remaining two years, maturing in October 2030. The Credit Facility is secured by all assets of PPIF SPV. Both the Company and PPIF SPV have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.

The Credit Facility contains covenants, including, but not limited to, restrictions of loan size, industry requirements, average life of loans, geographic and individual portfolio concentrations, minimum portfolio yield and loan payment frequency. Additionally, the Credit Facility requires the maintenance income ratio as well as restrictions on certain payments and issuance of debt. As of December 31, 2025, we were in compliance with the covenants relating to our Credit Facility.

We may raise equity or debt capital through both registered offerings off our shelf registration statement and private offerings of securities, securitizing a portion of our investments among other considerations or mergers and acquisitions. Furthermore, the Credit Facility availability depends on various covenants and restrictions as discussed in the preceding paragraphs. The primary use of existing funds and any funds raised in the future is expected to be for repayment of indebtedness, investments in portfolio companies, cash distributions to our shareholders or for other general corporate purposes.

We could 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 could 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.

We have entered into an agreement with the Investment Adviser, or the Investment Advisory Management Agreement, under which the Investment Adviser, subject to the overall supervision of our Board, manages the day-to-day operations of, and provides investment advisory services to, us. Mr. Penn, our Chairman and Chief Executive Officer, is the managing member and a senior investment professional of, and has a financial and controlling interest in, the Investment Adviser. Under the terms of our Investment Advisory Management Agreement, the Investment Adviser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•determines the composition of our portfolio, the nature and timing of the changes to our portfolio and the manner of implementing such changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•identifies, evaluates and negotiates the structure of the investments we make (including performing due diligence on our prospective portfolio companies);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•closes and monitors the investments we make; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provides us with such other investment advisory, research and related services as we may need from time to time.

------

The Investment Adviser's services under our Investment Advisory Management Agreement are not exclusive, and it is free to furnish similar services, without the prior approval of our shareholders or our Board, to other entities so long as its services to us are not impaired. Our Board monitors for any potential conflicts that may arise upon such a development. For providing these services, the Investment Adviser receives a fee from us, consisting of two components-a base management fee and an incentive fee.

Under the Administration Agreement, the Administrator furnishes us with office facilities, equipment and clerical, bookkeeping and record keeping services. Under our Administration Agreement, the Administrator performs, or oversees the performance of, our required administrative services, which include, among other activities, being responsible for the financial records we are required to maintain and preparing reports to our shareholders and reports filed with the SEC. In addition, the Administrator assists us in determining and publishing our NAV, oversees the preparation and filing of our tax returns and generally oversees the payment of our expenses and the performance of administrative and professional services rendered to us by others. For providing these services, facilities and personnel, we have agreed to reimburse the Administrator for our allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent, technology systems, insurance, our allocable portion of the cost of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer and their respective staffs, certain tax and general legal advice and/or services provided to the Company by in-house professionals of the Administrator related to ongoing operations of the Company and/or services provided to the Company or portfolio companies by in-house professionals of the Administrator or its affiliates on matters related to potential or actual investments and transactions, including tax structuring and/or due diligence. The Administrator also offers on our behalf, significant managerial assistance to portfolio companies to which we are required to offer such assistance. To the extent that our Administrator outsources any of its functions, we will pay the fees associated with such functions on a direct basis without profit to the Administrator.

If any of the contractual obligations discussed above is terminated, our costs under any new agreements that we enter into could increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we receive under our Investment Advisory Management Agreement and our Administration Agreement. Any new investment management agreement would also be subject to approval by our shareholders.

As of December 31, 2025, we had cash and cash equivalents of $65.7 million available for investing and general corporate purposes. We believe our liquidity and capital resources are sufficient to take advantage of market opportunities.

For the three months ended December 31, 2025, our operating activities used cash of $71.5 million and our financing activities provided cash of $117.2 million. Our operating activities used cash primarily due to our Private Offering, investment activities and borrowings under our Credit Facility provided cash.

***Off-Balance Sheet Arrangements***

We currently engage in no off-balance sheet arrangements other than our funding requirements for the unfunded investments described above.

***Distributions*** 

To the extent that we have income available, we intend to make periodic distributions to our shareholders. Our distributions, if any, are determined by the Board. Any distributions to our shareholders will be declared out of assets legally available for distribution.

------

We intend to elect to be treated, and to qualify annually, as a RIC under Subchapter M of the Code. To maintain our RIC qualification, we must, among other requirements, distribute dividends for U.S. federal income tax purposes to our shareholders in respect of each taxable year of an amount generally at least equal to 90% of our investment company taxable, determined without regard to any deduction for dividends paid. In addition, we are subject to ordinary income and capital gain distribution requirements under U.S. federal excise tax rules for each calendar year. If we do not meet the required distributions, we will be subject to a 4% nondeductible U.S. federal excise tax on the undistributed amount.

We currently intend to distribute net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually out of the assets legally available for such distributions. However, we could decide in the future to retain such net capital gains for investment and elect to treat such gains as deemed distributions to you. If this happens, you will be treated for U.S. federal income tax purposes as if you had received an actual distribution of the capital gains that we retain and reinvested the net after tax proceeds in us. In this situation, you would be eligible to claim a tax credit (or, in certain circumstances, a tax refund) equal to your allocable share of the tax we paid on the capital gains deemed distributed to you. We cannot assure you that we will achieve results that will permit us to pay any cash distributions, and if we issue senior securities, we will be prohibited from making distributions if doing so would cause us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if such distributions are limited by the terms of any of our borrowings.

Unless you elect to receive your distributions in cash, we intend to make such distributions (net of applicable withholding tax) in additional Shares under our DRIP. Although distributions paid in the form of additional Shares will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, investors participating in our DRIP will not receive any corresponding cash distributions with which to pay any such applicable taxes. If you hold Shares in the name of a broker or financial intermediary, you should contact such broker or financial intermediary regarding your election to receive distributions in cash in lieu of Shares. Any distributions reinvested through the issuance of Shares through our DRIP will increase our gross assets on which the base management fee and the incentive fee are determined and paid to the Investment Adviser.

***Recent Accounting Pronouncements***

In December 2023, the FASB issued ASU 2023 - 09 "Improvements to Income Tax Disclosures" ("ASU 2023 – 09"). ASU 2023 - 09 intends to improve the transparency of income tax disclosures. ASU 2023 - 09 is effective for fiscal years beginning after December 15, 2024. We have adopted ASU 2023-09 effective December 31, 2025 and concluded that the application of this guidance did not have a material impact on our consolidated financial statements.

## Item 3. Quantitat ive and Qualitative Disclosures About Market Risk
We are subject to financial market risks, including valuation risk and interest rate risk. Uncertainty with respect to the economic effects of the overall market conditions has introduced significant volatility in the financial markets, and the effect of the volatility could materially impact our market risks, including those listed below.

***Valuation Risk*** 

Our investments may not have readily available market quotations (as such term is defined in Rule 2a-5 under the 1940 Act), and those investments which do not have readily available market quotations are valued at fair value as determined in good faith by the Investment Adviser, subject to supervision of the Board, in accordance with its valuation policies and procedures. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and it is possible that the difference could be material.

------

In accordance with Rule 2a-5 under the 1940 Act, our Investment Adviser, subject to the supervision of the Board, periodically assesses and manages material risks associated with the determination of the fair value of our investments.

***Interest Rate Risk*** 

We are subject to financial market risks, including changes in interest rates. As of December 31, 2025, our debt portfolio consisted of approximately 100% variable-rate investments. Variable-rate loans are usually based on the secured overnight funding rate (or an alternative risk-free floating interest rate index) and typically have durations of three months, after which they reset to current market interest rates. Variable-rate investments subject to a floor generally reset by reference to the current market index after one to nine months only if the index exceeds the floor. In regards to variable-rate instruments with a floor, the Company does not benefit from increases in interest rates until such rates exceed the floor and thereafter benefit from market rates above any such floor. In contrast, the Company's cost of funds, to the extent it is not fixed, will fluctuate with changes in interest rates since it has no floor.

Assuming that the most recent Consolidated Statements of Assets and Liabilities was to remain constant, and no actions were taken to alter the existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates:

---

| | | |
|:---|:---|:---|
| **Change in Interest Rates** | **Change in Interest Income,<br>Net of Interest Expense<br>(in thousands)** | **Change in Interest Income,<br>Net of Interest<br>Expense Per Share** |
| Down 3% | $(236.2) | $(0.08) |
| Down 2% | (157.4) | (0.05) |
| Down 1% | (78.7) | (0.03) |
| Up 1% | 78.7 | 0.03 |
| Up 2% | 157.4 | 0.05 |
| Up 3% | 236.2 | 0.08 |

---

Although management believes that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in the credit market, credit quality, size and composition of the assets on the Consolidated Statements of Assets and Liabilities and other business developments that could affect net increase in net assets resulting from operations or net investment income. Accordingly, no assurances can be given that actual results would not differ materially from those shown above.

Because we borrow money to make investments, our net investment income is dependent upon the difference between the rate at which the Company borrows funds and the rate at which the Company invests these funds, as well as the Company's level of leverage. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on the Company's net investment income or net assets.

We may hedge against interest rate and foreign currency fluctuations by using standard hedging instruments such as futures, options and forward contracts, subject to the requirements of the 1940 Act and applicable commodities laws. While hedging activities may insulate the Company against adverse changes in interest rates and foreign currencies, they may also limit our ability to participate in benefits of lower interest rates or higher exchange rates with respect to the Company's portfolio of investments with fixed interest rates or investments denominated in foreign currencies. During the periods covered by this Report, we did not engage in interest rate hedging activities or foreign currently-derivatives hedging activity.

------

## Item 4. Contr ols and Procedures
As of the period ended December 31, 2025, we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that, our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating 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 such possible controls and procedures.

There have been no changes in our internal control over financial reporting that occurred during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

------

# PART II - OT HER INFORMATION

## Item 1. Le gal Proceedings.
Neither us, our Investment Adviser or our Administrator, is currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us, or against our Investment Adviser or Administrator. From time to time, we, our Investment Adviser or Administrator, may be a party to certain legal proceedings, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these and any future 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.

## Item 1A. R isk Factors.
For information regarding factors that could affect our results of operations, financial condition and liquidity, see the risk factors discussed under the heading "Risk Factors" in the registration statement on Form 10 (the "Registration Statement") filed with the SEC on December 5, 2025. There have been no material changes to the risk factors previously disclosed in the Registration Statement. Additional risks and uncertainties are not currently known to us or that we currently deem to be immaterial also may adversely affect our business, financial condition and/or operating results.

## Item 2. Unregist ered Sales of Equity Securities and Use of Proceeds
We have entered into subscription agreements with investors ("Subscription Agreements") and expect to enter into additional Subscription Agreements with additional investors in connection with our Private Offering, pursuant to which we have issued and sold, and expect to continue to issue and sell Shares in reliance on the registration requirements of the Securities Act provided by Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder, Regulation S under the Securities Act and other exemptions from the registration requirements of the Securities Act. We have relied, in part, upon representations from each participating investor in the relevant Subscription Agreements that such investor is an "accredited investor" as defined in Regulation D under the Securities Act.

In addition, on December 1, 2025, the Company issued and sold 627,859 of the Company's common shares of beneficial interest, par value $0.001 per share (the "Common Shares") (with the final number of Common Shares issued being determined on December 31, 2025) pursuant to subscription agreements entered into with the participating investors for aggregate consideration of approximately $15,773,000.

The offer and sale of the Common Shares were conducted in connection with the Company's continuous private offering of Common Shares (the "Private Offering") in reliance on the exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), provided by Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder. The Company relied, in part, upon representations from each participating investor in the relevant subscription agreement that such investor is an "accredited investor" as defined in Regulation D under the Securities Act.

------

## Item 3. Defaults Upon Senior Securities
None.

## Item 4. Min e Safety Disclosures
Not applicable.

## Item 5. O ther Information
On February 13, 2026, the Board approved an amendment and restatement of the Company's Amended and Restated Declaration of Trust (as amended and restated, the "Second Amended and Restated Declaration of Trust") to remove the requirement that the Company have a trustee who is a resident of Delaware or which has its principal place of business in Delaware. The amendments contained in the Second Amended and Restated Agreement and Declaration of Trust were made pursuant to changes to the Delaware Statutory Trust Act (the "Act"), which made Section 3807(b) of the Act applicable to business development companies, such as the Company. The Company's Certificate of Trust was also amended to remove the Delaware trustee and to appoint a registered agent and establish a registered office in the State of Delaware.

The Second Amended and Restated Declaration of Trust was also amended to clarify that, notwithstanding anything to the contrary in the Second Amended and Restated Declaration of Trust, any provisions in the Second Amended and Restated Declaration of Trust that modify, restrict, or eliminate the duties of the trustees, officers, and Investment Adviser do not apply to, and in no way limit, the duties (including state law fiduciary duties of loyalty and care) or liabilities of such persons with respect to matters arising under the federal securities laws.

The foregoing description of the Second Amended and Restated Declaration of Trust does not purport to be complete and is qualified in its entirety by reference to the full text of the Second Amended and Restated Declaration of Trust, which is filed herewith as Exhibit 3.3.

**10b5-1 Disclosure**

None of the officers or trustees of the Company have adopted or terminated any Rule 10b5-1 trading arrangements applicable to them (if any) or the Company.

------

## Item 6. Exhibits
Unless specifically indicated otherwise, the following exhibits are incorporated by reference to exhibits previously filed with the SEC:

---

| | |
|:---|:---|
| 3.1 | [<u>Certificate of Trust (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on October 10, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525237220/d50016dex31.htm) |
| 3.2\* | [<u>Certificate of Amendment to the Certificate of Trust.</u>](ck0002089126-ex3_2.htm) |
| 3.3\* | [<u>Second Amended and Restated Declaration of Trust.</u>](ck0002089126-ex3_3.htm) |
| 3.4 | [<u>Bylaws (incorporated by reference to Exhibit 3.3 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on October 10, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525237220/d50016dex33.htm) |
| 10.1 | [<u>Amended and Restated Investment Advisory Management Agreement by and between PennantPark Private Income Fund and PennantPark Private Income Fund Advisers, LLC (incorporated by reference to Exhibit 10.1 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on November 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525298088/d50016dex101.htm) |
| 10.2 | [<u>Fee Waiver Agreement by and between PennantPark Private Income Fund and PennantPark Private Income Fund Advisers, LLC (incorporated by reference to Exhibit 10.2 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on November 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525298088/d50016dex102.htm) |
| 10.3 | [<u>Administration Agreement by and between PennantPark Private Income Fund and PennantPark Investment Administration, LLC (incorporated by reference to Exhibit 10.3 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on November 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525298088/d50016dex103.htm) |
| 10.4 | [<u>Custody Agreement, by and between PennantPark Private Income Fund and State Street Bank and Trust Company (incorporated by reference to Exhibit 10.4 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on November 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525298088/d50016dex104.htm) |
| 10.5 | [<u>Expense Holiday Agreement, by and between PennantPark Private Income Fund and PennantPark Private Income Fund Advisers LLC (incorporated by reference to Exhibit 10.5 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on November 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525298088/d50016dex105.htm) |
| 10.6 | [<u>Expense Limitation Agreement, by and between PennantPark Private Income Fund and PennantPark Private Income Fund Advisers LLC (incorporated by reference to Exhibit 10.6 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on November 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525298088/d50016dex106.htm) |
| 10.7 | [<u>Trademark License Agreement by and between PennantPark Investment Advisers, LLC and PennantPark Private Income Fund (incorporated by reference to Exhibit 10.7 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on November 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525298088/d50016dex107.htm) |
| 10.8 | [<u>Distribution Reinvestment Plan (incorporated by reference to Exhibit 10.8 to the Company's Registration Statement on Form 10 (File No. 000-56787) filed on November 26, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525298088/d50016dex108.htm) |
| 10.9 | [<u>Loan and Security Agreement, dated as of October 1, 2025, by and among PennantPark Investment Advisers, LLC, as the collateral manager, PennantPark Private Income Fund SPV LLC, as the borrower, PennantPark Private Income Fund, as the transferor, each of the lenders from time to time party thereto, CIBC Bank USA, as the administrative agent and Western Alliance Trust Company, N.A., as the collateral agent and the custodian (Incorporated by reference to Exhibit 10.12 to the Registrant's Amendment No. 2 to Registration Statement on Form 10 (File No. 000-56787). filed on December 5, 2025).</u>](https://www.sec.gov/Archives/edgar/data/2089126/000119312525309940/d50016dex1012.htm) |
| 31.1\* | [<u>Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.</u>](ck0002089126-ex31_1.htm) |

---

------

---

| | |
|:---|:---|
| 31.2\* | [<u>Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.</u>](ck0002089126-ex31_2.htm) |
| 32.1\* | [<u>Certification of Chief Executive Officer pursuant to section 906 of The Sarbanes-Oxley Act of 2002.</u>](ck0002089126-ex32_1.htm) |
| 32.2\* | [<u>Certification of Chief Financial Officer pursuant to section 906 of The Sarbanes-Oxley Act of 2002.</u>](ck0002089126-ex32_2.htm)<br>|
| 99.1\* | [<u>Privacy Policy of the Registrant.</u>](ck0002089126-ex99_1.htm) |
| 101.INS\* | Inline XBRL Instance Document-the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page formatted as Inline XBRL and contained in Exhibit 101 |

---

------

\* Filed herewith.

------

# SIG NATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | PENNANTPARK PRIVATE INCOME FUND | PENNANTPARK PRIVATE INCOME FUND |
| Date: February 13, 2026 | By: | /s/ Arthur H. Penn |
|  |  | **Arthur H. Penn** |
|  |  | **Chief Executive Officer and Chairman of the Board of Trustees**<br>**(Principal Executive Officer)** |
| Date: February 13<u>,</u> 2026 | By:  | /s/ Richard T. Allorto, Jr. |
|  |  | **Richard T. Allorto, Jr.** |
|  |  | **Chief Financial Officer and Treasurer**<br>**(Principal Financial and Accounting Officer)** |

---

------

## Exhibit 3.2

**Exhibit 3.2**

**STATE OF DELAWARE**

**CERTIFICATE OF AMENDMENT TO THE**

**CERTIFICATE OF TRUST** 

**OF**

**PENNANTPARK PRIVATE INCOME FUND**

This Certificate of Amendment to the Certificate of Trust of PennantPark Private Income Fund (the "Trust") is filed in accordance with the provisions of the Delaware Statutory Trust Act (12 Del. C. §3801 *et seq*.) (the "Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Name</u>. The name of the Trust is PennantPark Private Income Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Certificate of Trust of the Trust is hereby amended (a) to provide notice that the Trust has elected to be regulated as a business development company under the U.S. Investment Company Act of 1940, as amended, and (b) to delete the second enumerated paragraph therein in its entirety and to insert in lieu thereof the following second enumerated paragraph:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Registered Office and Registered Agent</u>. The address of the Trust's registered office in the State of Delaware is 1209 Orange Street, in the City of Wilmington, County of New Castle, Delaware 19801. The name of the registered agent at such address upon whom process against the Trust may be served is The Corporation Trust Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. This Certificate of Amendment to the Certificate of Trust shall be effective upon the date and time of filing.

IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of Amendment to the Certificate of Trust in accordance with Section 3811(a)(2) of the Act as of the 13<sup>th</sup> day of February, 2026.

By: <u>/s/ Arthur H. Penn</u>

Name: Arthur H. Penn, *not in his individual capacity but solely as trustee*

------

## Exhibit 3.3

**Exhibit 3.3**

**<u>PENNANTPARK PRIVATE INCOME FUND</u>** 

**<u>SECOND AMENDED AND RESTATED</u>** 

**<u>AGREEMENT AND DECLARATION OF TRUST</u>**

------

**<u>**TABLE OF CONTENTS**</u>**

**Page**

---

| | | |
|:---|:---|:---|
| ARTICLE I THE TRUST | ARTICLE I THE TRUST | 1 |
| &nbsp;&nbsp;&nbsp;Section 1.1 | Name | 1 |
| &nbsp;&nbsp;&nbsp;Section 1.2 | Trust Purpose | 1 |
| &nbsp;&nbsp;&nbsp;Section 1.3 | Definitions | 2 |
| ARTICLE II BOARD OF TRUSTEES; OFFICERS | ARTICLE II BOARD OF TRUSTEES; OFFICERS | 5 |
| &nbsp;&nbsp;&nbsp;Section 2.1 | Number and Qualification | 5 |
| &nbsp;&nbsp;&nbsp;Section 2.2 | Term and Election | 5 |
| &nbsp;&nbsp;&nbsp;Section 2.3 | Vacancies | 6 |
| &nbsp;&nbsp;&nbsp;Section 2.4 | Meetings | 6 |
| &nbsp;&nbsp;&nbsp;Section 2.5 | Trustee Action by Written Consent | 7 |
| &nbsp;&nbsp;&nbsp;Section 2.6 | Officers | 7 |
| ARTICLE III POWERS AND DUTIES OF TRUSTEES | ARTICLE III POWERS AND DUTIES OF TRUSTEES | 7 |
| &nbsp;&nbsp;&nbsp;Section 3.1 | General | 7 |
| &nbsp;&nbsp;&nbsp;Section 3.2 | Legal Title | 8 |
| &nbsp;&nbsp;&nbsp;Section 3.3 | Issuance and Repurchase of Shares | 8 |
| &nbsp;&nbsp;&nbsp;Section 3.4 | Borrow Money or Utilize Leverage | 9 |
| &nbsp;&nbsp;&nbsp;Section 3.5 | Delegation by Trustees | 9 |
| &nbsp;&nbsp;&nbsp;Section 3.6 | Collection and Payment | 10 |
| &nbsp;&nbsp;&nbsp;Section 3.7 | Bylaws | 10 |
| &nbsp;&nbsp;&nbsp;Section 3.8 | Determinations by the Board | 10 |
| &nbsp;&nbsp;&nbsp;Section 3.9 | Miscellaneous Powers | 10 |
| &nbsp;&nbsp;&nbsp;Section 3.10 | Further Powers | 11 |
| &nbsp;&nbsp;&nbsp;Section 3.11 | Sole Discretion; Good Faith; Corporate Opportunities of Advisor | 11 |
| &nbsp;&nbsp;&nbsp;Section 3.12 | Principal Transactions | 12 |
| &nbsp;&nbsp;&nbsp;Section 3.13 | Trust Only | 12 |
| ARTICLE IV FEES AND EXPENSES; ADVISORY, MANAGEMENT AND DISTRIBUTION ARRANGEMENTS | ARTICLE IV FEES AND EXPENSES; ADVISORY, MANAGEMENT AND DISTRIBUTION ARRANGEMENTS | 12 |
| &nbsp;&nbsp;&nbsp;Section 4.1 | Expenses | 12 |
| &nbsp;&nbsp;&nbsp;Section 4.2 | Advisory and Management Arrangements | 12 |
| &nbsp;&nbsp;&nbsp;Section 4.3 | Distribution Arrangements | 13 |
| &nbsp;&nbsp;&nbsp;Section 4.4 | Parties to Contract | 13 |
| ARTICLE V LIMITATIONS OF LIABILITY AND INDEMNIFICATION | ARTICLE V LIMITATIONS OF LIABILITY AND INDEMNIFICATION | 13 |
| &nbsp;&nbsp;&nbsp;Section 5.1 | No Personal Liability of Shareholders, Trustees, etc | 13 |
| &nbsp;&nbsp;&nbsp;Section 5.2 | Mandatory Indemnification | 14 |
| &nbsp;&nbsp;&nbsp;Section 5.3 | No Bond Required of Trustees | 15 |
| &nbsp;&nbsp;&nbsp;Section 5.4 | No Duty of Investigation; No Notice in Trust Instruments, etc | 15 |
| &nbsp;&nbsp;&nbsp;Section 5.5 | Reliance on Experts, etc | 16 |

---

------

****TABLE OF CONTENTS** (continued)**

**Page**

---

| | | |
|:---|:---|:---|
| ARTICLE VI SHARES OF BENEFICIAL INTEREST | ARTICLE VI SHARES OF BENEFICIAL INTEREST | 16 |
| &nbsp;&nbsp;&nbsp;Section 6.1 | Beneficial Interest | 16 |
| &nbsp;&nbsp;&nbsp;Section 6.2 | Other Securities | 16 |
| &nbsp;&nbsp;&nbsp;Section 6.3 | Rights of Shareholders | 17 |
| &nbsp;&nbsp;&nbsp;Section 6.4 | Classification or Reclassification | 17 |
| &nbsp;&nbsp;&nbsp;Section 6.5 | Issuance of Shares | 18 |
| &nbsp;&nbsp;&nbsp;Section 6.6 | Register of Shares | 18 |
| &nbsp;&nbsp;&nbsp;Section 6.7 | Transfer Agent and Registrar | 19 |
| &nbsp;&nbsp;&nbsp;Section 6.8 | Transfer of Shares | 19 |
| &nbsp;&nbsp;&nbsp;Section 6.9 | Notices | 19 |
| &nbsp;&nbsp;&nbsp;Section 6.10 | Derivative Actions | 19 |
| ARTICLE VII CAPITAL CALLS AND CERTAIN ERISA MATTERS | ARTICLE VII CAPITAL CALLS AND CERTAIN ERISA MATTERS | 20 |
| &nbsp;&nbsp;&nbsp;Section 7.1 | Capital Commitment; Drawdowns | 20 |
| &nbsp;&nbsp;&nbsp;Section 7.2 | Certain ERISA Matters | 20 |
| ARTICLE VIII CUSTODIANS | ARTICLE VIII CUSTODIANS | 21 |
| &nbsp;&nbsp;&nbsp;Section 8.1 | Appointment and Duties | 21 |
| &nbsp;&nbsp;&nbsp;Section 8.2 | Central Certificate System | 22 |
| ARTICLE IX REDEMPTION | ARTICLE IX REDEMPTION | 22 |
| &nbsp;&nbsp;&nbsp;Section 9.1 | Redemptions | 22 |
| &nbsp;&nbsp;&nbsp;Section 9.2 | Disclosure of Holding | 22 |
| &nbsp;&nbsp;&nbsp;Section 9.3 | Redemption by Trust | 22 |
| ARTICLE X NET ASSET VALUE AND DISTRIBUTIONS | ARTICLE X NET ASSET VALUE AND DISTRIBUTIONS | 23 |
| &nbsp;&nbsp;&nbsp;Section 10.1 | Net Asset Value | 23 |
| &nbsp;&nbsp;&nbsp;Section 10.2 | Distributions to Shareholders | 23 |
| &nbsp;&nbsp;&nbsp;Section 10.3 | Power to Modify Foregoing Procedures | 23 |
| ARTICLE XI SHAREHOLDERS | ARTICLE XI SHAREHOLDERS | 24 |
| &nbsp;&nbsp;&nbsp;Section 11.1 | Meetings of Shareholders | 24 |
| &nbsp;&nbsp;&nbsp;Section 11.2 | Voting | 24 |
| &nbsp;&nbsp;&nbsp;Section 11.3 | Record Date; Notice of Meeting; Postponement and Adjournment | 24 |
| &nbsp;&nbsp;&nbsp;Section 11.4 | Quorum and Required Vote | 25 |
| &nbsp;&nbsp;&nbsp;Section 11.5 | Proxies, etc | 26 |
| &nbsp;&nbsp;&nbsp;Section 11.6 | Reports | 26 |
| &nbsp;&nbsp;&nbsp;Section 11.7 | Inspection of Records | 26 |
| &nbsp;&nbsp;&nbsp;Section 11.8 | Delivery by Electronic Transmission or Otherwise | 26 |
| &nbsp;&nbsp;&nbsp;Section 11.9 | Shareholder Action by Written Consent | 27 |

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****TABLE OF CONTENTS** (continued)**

**Page**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Section 11.10 | Meetings by Remote Communication | 27 |
| ARTICLE XII [*Intentionally Omitted*] | ARTICLE XII [*Intentionally Omitted*] | 27 |
| ARTICLE XIII Capital Accounts; Allocations | ARTICLE XIII Capital Accounts; Allocations | 27 |
| &nbsp;&nbsp;&nbsp;Section 13.1 | Capital Accounts | 27 |
| &nbsp;&nbsp;&nbsp;Section 13.2 | Allocations of Profit or Loss | 28 |
| &nbsp;&nbsp;&nbsp;Section 13.3 | Miscellaneous | 28 |
| ARTICLE XIV Tax Matters | ARTICLE XIV Tax Matters | 29 |
| &nbsp;&nbsp;&nbsp;Section 14.1 | Tax Matters | 29 |
| &nbsp;&nbsp;&nbsp;Section 14.2 | Treatment | 29 |
| &nbsp;&nbsp;&nbsp;Section 14.3 | Tax Distributions | 29 |
| &nbsp;&nbsp;&nbsp;Section 14.4 | Elections; Shareholder Information | 30 |
| &nbsp;&nbsp;&nbsp;Section 14.5 | Fiscal Year | 30 |
| ARTICLE XV WIND DOWN; AMENDMENT; MERGERS, ETC. | ARTICLE XV WIND DOWN; AMENDMENT; MERGERS, ETC. | 30 |
| &nbsp;&nbsp;&nbsp;Section 15.1 | Wind Down | 30 |
| &nbsp;&nbsp;&nbsp;Section 15.2 | Amendment Procedure | 31 |
| &nbsp;&nbsp;&nbsp;Section 15.3 | Subsidiaries | 31 |
| &nbsp;&nbsp;&nbsp;Section 15.4 | Merger, Consolidation, Incorporation | 31 |
| ARTICLE XVI MISCELLANEOUS | ARTICLE XVI MISCELLANEOUS | 33 |
| &nbsp;&nbsp;&nbsp;Section 16.1 | Power of Attorney | 33 |
| &nbsp;&nbsp;&nbsp;Section 16.2 | Filing | 33 |
| &nbsp;&nbsp;&nbsp;Section 16.3 | Governing Law | 34 |
| &nbsp;&nbsp;&nbsp;Section 16.4 | Exclusive Delaware Jurisdiction | 34 |
| &nbsp;&nbsp;&nbsp;Section 16.5 | Other Agreements | 35 |
| &nbsp;&nbsp;&nbsp;Section 16.6 | Counterparts | 36 |
| &nbsp;&nbsp;&nbsp;Section 16.7 | Reliance by Third Parties | 36 |
| &nbsp;&nbsp;&nbsp;Section 16.8 | Provisions in Conflict with Law or Regulation | 36 |
| &nbsp;&nbsp;&nbsp;Section 16.9 | Waiver of Trial by Jury | 36 |
| &nbsp;&nbsp;&nbsp;Section 16.10 | Entire Agreement | 36 |

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<u>SECOND AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST</u> 

<u>OF PENNANTPARK PRIVATE INCOME FUND</u> 

This SECOND AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST made as of this 13<sup>th</sup> day of February, 2026 by the Trustees hereunder.

WHEREAS, Arthur H. Penn, as Trustee, and Wilmington Trust, National Association entered into that certain Declaration of Trust dated as of April 24, 2025 (the "<u>Initial Declaration</u>") and filed a certificate of trust with the Secretary of State of the State of Delaware pursuant to which the Trust (as defined herein) was created;

WHEREAS, Arthur H. Penn, as Trustee, and Wilmington Trust, National Association entered into that certain Amended and Restated Declaration of Trust dated as of September 16, 2025 (the "<u>Amended and Restated Declaration</u>")

WHEREAS, this Trust has been formed to carry on the business as set forth more particularly hereinafter.

WHEREAS, this Trust is authorized to issue an unlimited number of its shares of beneficial interest all in accordance with the provisions hereinafter set forth;

WHEREAS, the Trustees have agreed to manage all property coming into their hands as Trustees of a Delaware statutory trust in accordance with the provisions hereinafter set forth; and

WHEREAS, the parties hereto intend that the Trust shall constitute a statutory trust under the Delaware Statutory Trust Act (as defined herein) and that this Declaration and the Bylaws shall constitute the governing instrument of such statutory trust.

NOW, THEREFORE, the Trustees hereby declare that they will hold all cash, securities, and other assets that the Trust now possesses or may hereafter acquire from time to time in any manner and manage and dispose of the same upon the following terms and conditions and the parties hereto have agreed to amend and restate the Initial Declaration in its entirety.

**ARTICLE I<br>THE TRUST** 

Section 1.1 <u>Name</u>. This Trust created under the Initial Declaration shall be known as "PennantPark Private Income Fund," and the Trustees shall conduct the business of the Trust under that name or any other name or names as they may from time to time determine. Any name change shall become effective upon approval by the Trustees of such change and the filing and effectiveness of a certificate of amendment pursuant to Section 3810(b) of the Delaware Statutory Trust Act. Any such action shall not require the approval of the Shareholders, but shall have the status of an amendment to this Declaration.

Section 1.2 <u>Trust Purpose</u>. The purpose of the Trust is to conduct, operate and carry on the business of a private fund and, if applicable, following the Trust's election to be regulated as a business development company within the meaning of the 1940 Act (as defined herein), a business development company. In furtherance of the foregoing, it shall be the purpose of the Trust to do

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everything necessary, suitable, convenient or proper for the conduct, promotion and attainment of any businesses and purposes which at any time may be incidental or may appear conducive or expedient for the accomplishment of the business of a business development company regulated under the 1940 Act and which may be engaged in or carried on by a trust organized under the Delaware Statutory Trust Act, and in connection therewith the Trust shall have the power and authority to engage in the foregoing and may exercise all of the powers conferred by the laws of the State of Delaware upon a Delaware statutory trust.

Section 1.3 <u>Definitions</u>. As used in this Declaration, the following terms shall have the following meanings:

The "<u>1940 Act</u>" shall mean the Investment Company Act of 1940 and the rules and regulations promulgated thereunder and exemptions granted therefrom, as amended from time to time.

The terms "<u>Affiliated Person</u>" and "<u>Principal Underwriter</u>" shall have the meanings given to them in the 1940 Act.

"<u>Advisor</u>" shall mean PennantPark Investment Advisers, LLC or any affiliated successor in interest thereto. If the Advisor no longer serves as the investment adviser to the Trust, the rights of the Advisor in this Declaration will become the rights of the Trustees.

"<u>Benefit Plan Investor</u>" shall mean a benefit plan investor as defined in the Plan Assets Regulation.

"<u>Board of Trustees</u>" or "<u>Board</u>" shall mean the Trustees collectively.

"<u>Book Value</u>" means, except as set forth herein, the adjusted basis of any Trust Property for federal income tax purposes. The initial Book Value of any property contributed by a Shareholder to the Trust shall be the gross fair market value of such property at the time of such contribution. At the discretion of the Trustees, the Book Value of all of the Trust Property shall be adjusted to equal the respective gross fair market values of such property, as determined by the Trustees, as of the times described in Treasury Regulations Section 1.704-1(b)(2)(iv)(f).

"<u>Bylaws</u>" shall mean the Bylaws of the Trust as amended from time to time by the Trustees.

"<u>Capital Account</u>" shall have the meaning set forth in <u>Section 13.1(a)</u>.

"<u>Capital Commitment</u>" shall mean each investor's commitment to contribute capital to the Trust in exchange for Shares pursuant to a subscription agreement with the Trust.

"<u>Capital Contributions</u>" shall mean the total amount of cash contributed to the capital of the Trust by all the Shareholders or any class of Shareholders or any one Shareholder (or the predecessor holders of the Shares of such Shareholder or Shareholders), as the context requires. Each individual contribution shall be a separate "<u>Capital Contribution</u>."

"<u>Code</u>" shall mean the Internal Revenue Code of 1986, as amended.

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"<u>Commission</u>" shall mean the Securities and Exchange Commission.

"<u>Continuing Trustee</u>" shall mean any member of the Board of Trustees who either (a) has been a member of the Board of Trustees for a period of at least thirty-six (36) months (or since the date hereof, if less than thirty-six (36) months) or (b) was nominated to serve as a member of the Board of Trustees by a majority of the Continuing Trustees then members of the Board of Trustees.

"<u>CTA</u>" has the meaning assigned in Section 12.2(c)(x).

"<u>Declaration</u>" shall mean this Second Amended and Restated Declaration of Trust, as amended, supplemented or amended and restated from time to time.

"<u>Delaware General Corporation Law</u>" shall mean the Delaware General Corporation Law, 8 <u>Del. C.</u> § 100, <u>et seq</u>., as amended from time to time.

"<u>Delaware Statutory Trust Act</u>" shall mean the provisions of the Delaware Statutory Trust Act, 12 <u>Del. C.</u> § 3801, <u>et seq</u>., as amended from time to time.

"<u>ERISA</u>" shall mean the Employee Retirement Income Security Act of 1974, as amended.

"<u>ERISA Controlling Person</u>" The term "ERISA Controlling Person" shall mean a Person (other than a Benefit Plan Investor) who has discretionary authority or control with respect to the assets of the Trust or who provides investment advice for a fee (direct or indirect) with respect to such assets, or any affiliate of such a Person within the meaning of 29 C.F.R. § 2510.3-101(f)(3).

"<u>Exchange Listing</u>" shall mean the quotation or listing of the Trust's securities on a national securities exchange (including through an initial public offering) or a sale of all or substantially all of the assets of the Trust to, or a merger or other liquidity transaction with, an entity in which the Trust's Shareholders receive shares of a publicly traded company that continues to be managed by the Advisor or an affiliate thereof.

"<u>FinCEN</u>" has the meaning assigned in Section 12.2(c)(x).

"<u>Gain Recognition Election</u>" shall have the meaning set forth in Section 3.1.

"<u>Indemnified Parties</u>" has the meaning assigned in Section 12.4.

"<u>Independent Trustee</u>" shall mean a Trustee who is not an Interested Person.

"<u>Interested Person</u>" shall mean a Person who is an "interested person" as that term is defined under Section 2(a)(19) of the 1940 Act.

"<u>IRS</u>" shall mean the Internal Revenue Service.

"<u>Net Profit</u>" or "<u>Net Loss</u>", as the case may be, means the income and loss of the Trust as determined in accordance with the accounting methods followed by the Trust for federal income tax purposes but including income exempt from tax and described in Section 705(a)(1)(B) of the Code, treating as deductions items of expenditure described in, or under Treasury Regulations

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deemed described in, Section 705(a)(2)(B) of the Code and treating as an item of gain (or loss) both any increase (decrease) in the Book Value of the Trust Property over (under) its Book Value. Depreciation, depletion, amortization, income and gain (or loss) with respect to the Trust Property shall be computed with reference to its Book Value rather than adjusted bases in accordance with the rules set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(f).

"<u>Partnership Representative</u>" has the meaning assigned in Section 14.1(a).

"<u>Person</u>" shall mean and include individuals, corporations, partnerships, trusts, limited liability companies, associations, joint ventures and other entities, whether or not legal entities, and governments and agencies and political subdivisions thereof.

"<u>Plan Assets Regulation</u>" shall mean 29 C.F.R. § 2510.3-101, as modified by Section 3(42) of ERISA.

"<u>Plan Investor</u>" shall mean a Shareholder that is (i) a Benefit Plan Investor that has given advance written notification in its subscription agreement that it is or will be a Benefit Plan Investor or (ii) an employee benefit plan or entity that (A) is not a Benefit Plan Investor, (B) is subject to any federal, state, local, non-US or other law or regulation that contains provisions that are similar to the prohibited transaction provisions contained in Title I of ERISA or Section 4975 of the Code, and (C) has given advance written notification to the Board or Advisor that it wishes to be treated as a Plan Investor, or that the Board of Trustees or Advisor otherwise determines to treat it as a Plan Investor, for purposes of this Agreement.

"<u>Publicly Offered Securities</u>" shall mean publicly-offered securities as defined in 29 C.F.R. § 2510.3-101(b)(2) or any successor regulation thereto.

"<u>RIC</u>" has the meaning assigned in Section 3.1.

"<u>Securities Act</u>" shall mean the Securities Act of 1933, as amended.

"<u>Shareholders</u>" shall mean as of any particular time the holders of record of outstanding Shares of the Trust, at such time.

"<u>Shares</u>" shall mean the transferable units of beneficial interest into which the beneficial interest in the Trust shall be divided from time to time and includes fractions of Shares as well as whole Shares. In addition, Shares shall also mean any preferred shares or preferred units of beneficial interest that may be issued from time to time, as described herein. All references to Shares shall be deemed to be Shares of any or all series or classes as the context may require.

"<u>Tax Liability</u>" of a Shareholder shall mean the amount of taxable income (and each item thereof) allocated to such Shareholder for U.S. federal income tax purposes in the Trust's tax return multiplied by the highest combined marginal U.S. federal, state and city income tax rates for individuals residing in New York, New York on each type of taxable income and gain included in such amount, taking into account the nondeductibility of any item for state income tax purposes that is deductible for federal income tax purposes and the deductibility of any item for state income tax purposes that is not deductible for federal income tax purposes. The Trustees may make such

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adjustments to the Tax Liability of a Shareholder for any particular period as it determines in its reasonable discretion taking into account factors in addition to those described herein.

"<u>Treasury Regulations</u>" shall mean all final and temporary U.S. federal income tax regulations, as amended from time to time, issued under the Code by the Department of the Treasury.

"<u>Trust</u>" shall mean PennantPark Private Income Fund, the trust governed by this Declaration and the Bylaws, as amended from time to time, inclusive of each such amendment.

"<u>Trust Property</u>" shall mean as of any particular time any and all property, real or personal, tangible or intangible, which at such time is owned or held by or for the account of the Trust or the Trustees in such capacity.

"<u>Trustees</u>" shall mean the signatories to this Declaration, so long as they shall continue in office in accordance with the terms hereof, and all other persons who at the time in question have been duly elected or appointed and have qualified as trustees in accordance with the provisions hereof and are then in office.

**ARTICLE II<br>BOARD OF TRUSTEES; OFFICERS** 

Section 2.1 <u>Number and Qualification</u>. As of the date hereof, the Trustees shall be the signatories hereto and the number of Trustees shall be the number of person so signing until changed by the Trustees. Thereafter, the number of Trustees shall be determined by a majority of the Trustees then in office, provided that the number of Trustees shall be no less than three or more than fifteen. No reduction in the number of Trustees shall have the effect of removing any Trustee from office prior to the expiration of his term. Trustees need not own Shares and may succeed themselves in office.

Section 2.2 <u>Term and Election</u>. Each Trustee shall serve during the continued lifetime of the Trust until he or she dies, resigns or is removed, or, if sooner, until the next meeting of Shareholders called for the purpose of electing Trustees and until the election and qualification of his or her successor.

Upon and following the Trust's election to be regulated as a business development company under the 1940 Act, a majority of the Board of Trustees shall be Independent Trustees, except for a period of up to sixty (60) days or such longer period permitted by the 1940 Act, after the death, removal or resignation of an Independent Trustee pending the election of such Independent Trustee's successor by the remaining Trustees.

Section 2.3 <u>Resignation and Removal</u>. Any of the Trustees may resign their trust (without need for prior or subsequent accounting) by an instrument in writing signed by such Trustee and delivered or mailed to the Trustees or the Chairperson, if any, the President or the Secretary, if any, and such resignation shall be effective upon such delivery, or at a later date according to the terms of the instrument. Any of the Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than the minimum number

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required by <u>Section 2.1</u> hereof) for cause only, and not without cause, and only by action taken by a majority of the remaining Trustees (or in the case of the removal of an Independent Trustee, a majority of the remaining Independent Trustees). Upon the resignation or removal of a Trustee, each such resigning or removed Trustee shall execute and deliver such documents as the remaining Trustees shall require for the purpose of conveying to the Trust or the remaining Trustees any Trust Property held in the name of such resigning or removed Trustee. Upon the incapacity or death of any Trustee, such Trustee's legal representative shall execute and deliver on such Trustee's behalf such documents as the remaining Trustees shall require as provided in the preceding sentence. Except to the extent expressly provided in a written agreement with the Trust, no Trustee resigning and no Trustee removed shall have any right to any compensation for any period following the effective date of his resignation or removal, or any right to damages on account of a removal.

Section 2.4 <u>Meetings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Meetings of the Trustees shall be held from time to time upon the call of the Chairperson, if any, or the President or any two Trustees. Regular meetings of the Trustees may be held without call or notice at a time and place fixed by the Bylaws, the Chairperson or by resolution or consent of the Trustees. Notice of any other meeting shall be given by the Trust and shall be delivered to the Trustees orally or via electronic transmission not less than twenty-four (24) hours, or in writing not less than seventy-two (72) hours, before the meeting, but may be waived by any Trustee either before or after such meeting. The attendance of a Trustee at a meeting shall constitute a waiver of notice of such meeting except where a Trustee attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting has not been properly called or convened. Any time there is more than one Trustee, a quorum for all meetings of the Trustees shall be one-third, but not less than two, of the Trustees. Unless provided otherwise in this Declaration and except as required under the 1940 Act, any action of the Trustees may be taken at a meeting by vote of a majority of the Trustees present (a quorum being present) or without a meeting by written consent of the Trustees as provided in <u>Section 2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any committee of the Trustees, including an executive committee, if any, may act with or without a meeting. Any time there is more than one Trustee on a committee, a

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quorum for all meetings of any such committee shall be one-third, but not less than two, of the members thereof. Unless provided otherwise in this Declaration, any action of any such committee may be taken at a meeting by vote of a majority of the members present (a quorum being present) or without a meeting by written consent of the members as provided in <u>Section 2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to actions of the Trustees and any committee of the Trustees, Trustees who are Interested Persons in any action to be taken may be counted for quorum purposes under this Section and shall be entitled to vote to the extent not prohibited by the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All or any one or more Trustees may participate in a meeting of the Trustees or any committee thereof by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other; participation in a meeting pursuant to any such communications system shall constitute presence in person at such meeting.

Section 2.5 <u>Trustee Action by Written Consent</u>. Any action that may be taken by Trustees by vote may be taken without a meeting if the number of the Trustees, or members of a committee, as the case may be, required for approval of such action at a meeting of the Trustees or of such committee consent to the action in writing and the written consents are filed with the records of the meetings of Trustees. Such consent shall be treated for all purposes as a vote taken at a meeting of Trustees.

Section 2.6 <u>Officers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustees shall elect a President, a Chief Financial Officer a Chief Compliance Officer, and a Treasurer and may elect a Chairperson or any other officer who shall serve at the pleasure of the Trustees or until their successors are elected. The Trustees may elect or appoint or may authorize the Chairperson, if any, or President to appoint such other officers or agents with such powers as the Trustees may deem to be advisable. A Chairperson shall, and officers may, but need not, be a Trustee. All officers shall owe to the Trust and its Shareholders the same fiduciary duties (and only such fiduciary duties) as owed by officers of corporations to such corporations and their stockholders under the Delaware General Corporation Law. Notwithstanding anything to the contrary in this Declaration of Trust, nothing in the Declaration of Trust modifying, restricting, or eliminating the duties or liabilities of Trustees, officers, and the Advisor shall apply to, or in any way limit, the duties (including state law duties of loyalty and care) or liabilities of such persons with respect to matters arising under the federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each officer shall serve the Trust in such office(s) (i) until his or her successor shall have been elected and shall have qualified, (ii) until his or her death or (iii) until he or she shall have resigned or have been removed by the Board of Trustees.

**ARTICLE III<br>POWERS AND DUTIES OF TRUSTEES** 

Section 3.1 <u>General</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustees shall have exclusive and absolute control over the Trust Property and over the business of the Trust to the same extent as if the Trustees were the sole owners of the Trust Property and business in their own right, but with such powers of delegation as may be permitted by this Declaration. The Trustees may perform such acts as in their sole discretion are proper for conducting the business of the Trust. Unless another standard is specified herein, in conducting the business of the Trust and in exercising their rights and powers hereunder, the Trustees may take any actions and make any determinations in their good faith belief that such actions or determinations are in, or not opposed to, the best interest of the Trust. The Trustees have the power to construe and interpret this Declaration in good faith and to act upon any such construction or interpretation. Any construction or interpretation of this Declaration by the Trustees and any action taken pursuant thereto and any determination as to what is in the interests of the Trust and the Shareholders made by the Trustees in good faith shall, in each case, be conclusive and binding on all Shareholders and all other Persons for all purposes. The enumeration of any specific power herein shall not be construed as limiting the aforesaid power. Such powers of the Trustees may be exercised without order of or resort to any court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustees shall have power with respect to the Trust to cause the Trust to elect to be treated as a business development company regulated under the 1940 Act and to manage, conduct, operate and carry on the business of a business development company. In connection with the Trust's election to operate as a business development company, the Trustees shall have the power to cause the Trust (i) to file an election on IRS Form 8832 (or a successor form) to elect to treat the Trust as a corporation for U.S. federal income tax purposes, and (ii) to elect to be treated and to qualify as a regulated investment company ("<u>RIC</u>") under the Code. In connection with the Trust's conversion to a RIC, the Trustees may (in their sole discretion) cause the Trust to make an election pursuant to Section 337 of the Code and underlying Treasury Regulations to cause built-in gain to be recognized in respect of Trust Property attributable to a Shareholder that is taxable as a corporation (or, on a look-through basis, has direct or indirect owners that are so taxable) (a "<u>Gain Recognition Election</u>"), and to specially allocate such recognized gain to such Shareholder. The Trustees may request the Shareholders to provide information as necessary (including in respect of indirect corporate owners) to enable the Trust to make an effective Gain Recognition Election.

Section 3.2 <u>Legal Title</u>. Legal title to all of the Trust Property shall be vested in the Trust as a separate legal entity except that the Trustees shall have power to cause legal title to any Trust Property to be held by or in the name of one or more of the Trustees, or in the name of any other Person as nominee, custodian or pledgee, on such terms as the Trustees may determine, provided that the interest of the Trust therein is appropriately protected. To the extent any Trust Property is titled in the name of one or more Trustees, the right, title and interest of such Trustees in the Trust Property shall vest automatically in each person who may hereafter become a Trustee upon his due election and qualification. Upon the ceasing of any person to be a Trustee for any reason, such person shall automatically cease to have any right, title or interest in any of the Trust Property, and the right, title and interest of such Trustee in the Trust Property shall vest automatically in the remaining Trustees. Such vesting and cessation of title shall be effective whether or not conveyancing documents have been executed and delivered.

Section 3.3 <u>Issuance and Repurchase of Shares</u>. The Trustees shall have the power to issue, sell, repurchase, redeem, retire, cancel, acquire, hold, resell, reissue, dispose of, transfer, and

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otherwise deal in, Shares, including Shares in fractional denominations, and, subject to the more detailed provisions set forth in ARTICLE IX, to apply to any such repurchase, redemption, retirement, cancellation or acquisition of Shares any funds or property. The Trustees may establish, from time to time, a program or programs by which the Trust voluntarily repurchases Shares from the Shareholders; provided, however, that such repurchases do not impair the capital or operations of the Trust.

Section 3.4 <u>Borrow Money or Utilize Leverage</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustees shall have the power to cause the Trust to borrow money or otherwise obtain credit or utilize leverage to the maximum extent permitted by law or regulation as such may be needed from time to time and to secure the same by mortgaging, pledging or otherwise subjecting as security the assets of the Trust, including the lending of portfolio securities, and to endorse, guarantee, or undertake the performance of any obligation, contract or engagement of any other person, firm, association or corporation. In addition and notwithstanding any other provision of this Declaration, the Trust is hereby authorized to borrow funds, incur indebtedness and guarantee obligations of any Person, and in connection therewith, to the fullest extent permitted by law, the Trustees, on behalf of the Trust, are hereby authorized to pledge, hypothecate, mortgage, assign, transfer or grant security interests in or other liens on (i) the Shareholders' subscription agreements, Capital Commitments, and the Shareholders' obligations to make capital contributions thereunder and hereunder, to satisfy their Capital Commitments, subject to the terms hereof and thereof, and (ii) any other assets, rights or remedies of the Trust or of the Trustees hereunder or under the subscription agreements, including without limitation, the right to issue capital call notices and to exercise remedies upon a default by a Shareholder in the payment of its capital contributions and the right to receive capital contributions and other payments, subject to the terms hereof and thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any provision in this Declaration, (i) the Trust may borrow funds, incur indebtedness and enter into guarantees together with one or more Persons on a joint and several basis or on any other basis that the Board of Trustees, in its sole discretion, determines is fair and reasonable to the Trust, and (ii) in connection with any borrowing, indebtedness or guarantee by the Trust, all capital contributions shall be payable to the account of the Trust designated by the Board of Trustees, which may be pledged to any lender or other credit party of the Trust. All rights granted to a lender pursuant to this <u>Section 3.4</u> shall apply to its agents and its successors and permitted assigns.

Section 3.5 <u>Delegation by Trustees</u>. Subject only to any limitations required by federal law including the 1940 Act, the Trustees may delegate any and all powers and authority hereunder as they consider desirable to any officer of the Trust, to any committee of the Trustees, any committee composed of Trustees and other persons and any committee composed only of persons other than Trustees and to any agent, independent contractor or employee of the Trust or to any custodian, administrator, transfer or shareholder servicing agent, manager, investment advisor or sub-advisor, Principal Underwriter or other service provider, provided that such delegation of power or authority by the Trustees shall not cause any Trustee to cease to be a Trustee of the Trust or cause such person, officer, agent, employee, custodian, transfer or shareholder servicing agent, manager, Principal Underwriter or other service provider to whom any power or authority has been delegated to be a Trustee of the Trust. The reference in this Declaration to the right of the Trustees

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to, or circumstances under which they may, delegate any power or authority, or the reference in this Declaration to the authorized agents of the Trustees or any other Person to whom any power or authority has or may be delegated pursuant to any specific provision of this Declaration, shall not limit the authority of the Trustees to delegate any other power or authority under this Declaration to any Person, subject only to any limitations under federal law including the 1940 Act.

Section 3.6 <u>Collection and Payment</u>. The Trustees shall have power to collect all property due to the Trust; to pay all claims, including taxes, against the Trust Property or the Trust, the Trustees or any officer, employee or agent of the Trust; to prosecute, defend, compromise or abandon any claims relating to the Trust Property or the Trust, or the Trustees or any officer, employee or agent of the Trust; to foreclose any security interest securing any obligations, by virtue of which any property is owed to the Trust; and to enter into releases, agreements and other instruments.

Section 3.7 <u>Bylaws</u>. The Trustees shall have the exclusive authority to adopt and from time to time amend or repeal Bylaws for the conduct of the business of the Trust.

Section 3.8 <u>Determinations by the Board</u>. The determination as to any of the following matters, made in good faith by or pursuant to the direction of the Board of Trustees consistent with this Declaration of Trust shall be final and conclusive and shall be binding upon the Trust and every Shareholder: (a) the amount of the net income of the Trust for any period and the amount of assets at any time legally available for the payment of dividends, redemption or repurchase of its Shares or the payment of other distributions on its Shares; (b) the amount of stated capital, capital surplus, net assets, other surplus, annual or other net profit, net assets in excess of capital, undivided profits or excess of profits over losses on sales of assets; (c) the amount, purpose, time of creation, increase or decrease, alteration or cancellation of any reserves or charges and the propriety thereof (whether or not any obligation or liability for which such reserves or charges shall have been created shall have been paid or discharged); (d) any interpretation of the terms, preferences, conversion or other rights, voting powers or rights, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of any class or series of Shares of the Trust; (e) the fair value, or any sale, bid or asked price to be applied in determining the fair value, of any asset owned or held by the Trust or any Shares of the Trust; (f) any matter relating to the acquisition, holding and disposition of any assets by the Trust; or (g) any other matter relating to the business and affairs of the Trust or required or permitted by applicable law, this Declaration of Trust or the Bylaws or otherwise to be determined by the Board provided, however, that any determination by the Board as to any of the preceding matters shall not render invalid or improper any action taken or omitted prior to such determination and no Trustee shall be liable for making or failing to make such a determination.

Section 3.9 <u>Miscellaneous Powers</u>. Without limiting the general or further powers of the Trustees, the Trustees shall have the power to: (a) employ or contract with such Persons as the Trustees may deem desirable for the transaction of the business of the Trust; (b) enter into joint ventures, partnerships and any other combinations or associations; (c) purchase, and pay for out of Trust Property, insurance policies insuring the Shareholders, Trustees, officers, employees, agents, investment advisors, distributors, selected dealers or independent contractors of the Trust against all claims arising by reason of holding any such position or by reason of any action taken or omitted

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by any such Person in such capacity, whether or not constituting negligence, or whether or not the Trust would have the power to indemnify such Person against such liability; (d) establish pension, profit-sharing, share purchase, and other retirement, incentive and benefit plans for any Trustees, officers, employees and agents of the Trust; (e) make donations, irrespective of benefit to the Trust, for charitable, religious, educational, scientific, civic or similar purposes; (f) to the extent permitted by law, indemnify any Person with whom the Trust has dealings, including without limitation any advisor, administrator, manager, transfer agent, custodian, distributor or selected dealer, or any other person as the Trustees may see fit to such extent as the Trustees shall determine; (g) guarantee indebtedness or contractual obligations of others; and (h) determine and change the fiscal year of the Trust and the method in which its accounts shall be kept.

Section 3.10 <u>Further Powers</u>. The Trustees shall have the power to conduct the business of the Trust and carry on its operations in any and all of its branches and maintain offices both within and without the State of Delaware, in any and all states of the United States of America, in the District of Columbia, and in any and all commonwealths, territories, dependencies, colonies, possessions, agencies or instrumentalities of the United States of America and of foreign governments, and to do all such other things and execute all such instruments as they deem necessary, proper or desirable in order to promote the interests of the Trust although such things are not herein specifically mentioned. In construing the provisions of this Declaration, the presumption shall be in favor of a grant of power to the Trustees.

Section 3.11 <u>Sole Discretion; Good Faith; Corporate Opportunities of Advisor</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision of this Declaration or otherwise applicable law, whenever in this Declaration the Trustees are permitted or required to make a decision:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in their "discretion" or under a grant of similar authority, the Trustees shall be entitled to consider such interests and factors as they desire, including their own interest, and, to the fullest extent permitted by applicable law, shall have no duty or obligation to give any consideration to any interest of or factors affecting the Trust or any other Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in their "good faith" or under another express standard, the Trustees shall act under such express standard and shall not be subject to any other or different standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless expressly provided otherwise herein or in the Trust's private placement memorandum or other offering document (as may be amended from time to time), the Advisor and any Affiliated Person of the Advisor may engage in or possess an interest in other profit-seeking or business ventures of any nature or description, independently or with others, whether or not such ventures are competitive with the Trust and the doctrine of corporate opportunity, or any analogous doctrine. To the extent that the Advisor acquires knowledge of a potential transaction, agreement, arrangement or other matter that may be an opportunity for the Trust, it shall not have any duty to communicate or offer such opportunity to the Trust, subject to the requirements of the 1940 Act, the Investment Advisers Act of 1940, as amended, and any applicable co-investment order issued by the Commission, and the Advisor shall not be liable to

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the Trust or to the Shareholders for breach of any fiduciary or other duty by reason of the fact that the Advisor pursues or acquires for, or directs such opportunity to, another Person or does not communicate such opportunity or information to the Trust. Neither the Trust nor any Shareholder shall have any rights or obligations by virtue of this Declaration or the trust relationship created hereby in or to such independent ventures or the income or profits or losses derived therefrom, and the pursuit of such ventures, even if competitive with the activities of the Trust, shall not be deemed wrongful or improper.

Section 3.12 <u>Principal Transactions</u>. Except to the extent prohibited by applicable law, the Trustees may, on behalf of the Trust, buy any securities from or sell any securities to, or lend any assets of the Trust to, any Trustee or officer of the Trust or any firm of which any such Trustee or officer is a member acting as principal, or have any such dealings with any Affiliate of the Trust, investment adviser, investment sub-adviser, distributor or transfer agent for the Trust or with any Interested Person of such Affiliate or other person; and the Trust may employ any such Affiliate or other person, or firm or company in which such Affiliate or other person is an Interested Person, as broker, legal counsel, registrar, investment advisor, investment sub-advisor, distributor, transfer agent, dividend disbursing agent, custodian or in any other capacity upon customary terms.

Section 3.13 <u>Trust Only</u>. It is the intention of the Trustees to create only the relationship of Trustee and beneficiary between the Trustees and each Shareholder from time to time. It is not the intention of the Trustees to create a general partnership, limited partnership, joint stock association, corporation, bailment or any form of legal relationship other than a Delaware statutory trust. Nothing in this Declaration of Trust shall be construed to make the Shareholders, either by themselves or with the Trustees, partners or members of a joint stock association.

**ARTICLE IV<br>FEES AND EXPENSES; ADVISORY, MANAGEMENT AND DISTRIBUTION ARRANGEMENTS** 

Section 4.1 <u>Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustees shall have power to incur and pay out of the assets or income of the Trust any expenses that in the opinion of the Trustees are necessary or incidental to carry out any of the purposes of this Declaration, and the business of the Trust, and to pay reasonable compensation from the funds of the Trust to themselves as Trustees. The Trustees shall fix the compensation of all officers, employees and Trustees. The Trust shall bear and be responsible for all costs and expenses of the Trust's operations, administration and transactions, including, but not limited to, fees and expenses paid for investment advisory, administrative or other services and all other expenses of its operations and transactions.

Section 4.2 <u>Advisory and Management Arrangements</u>. Subject to the requirements of applicable law as in effect from time to time, the Trustees may in their discretion from time to time enter into advisory, administration or management contracts (including, in each case, one or more sub-advisory, sub-administration or sub-management contracts) whereby the other party to any such contract shall undertake to furnish such advisory, administrative and management services with respect to the Trust as the Trustees shall from time to time consider desirable and all upon

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such terms and conditions as the Trustees may in their discretion determine. Notwithstanding any provisions of this Declaration, the Trustees may authorize any advisor, administrator or manager (subject to such general or specific instructions as the Trustees may from time to time adopt) to exercise any of the powers of the Trustees, including to effect investment transactions with respect to the assets on behalf of the Trust to the full extent of the power of the Trustees to effect such transactions or may authorize any officer, employee or Trustee to effect such transactions pursuant to recommendations of any such advisor, administrator or manager (and all without further action by the Trustees). Any such investment transaction shall be deemed to have been authorized by all of the Trustees.

Section 4.3 <u>Distribution Arrangements</u>. Subject to compliance with the 1940 Act, the Trustees may retain underwriters, distributors and/or placement agents to sell Shares and other securities of the Trust. The Trustees may in their discretion from time to time enter into one or more contracts, providing for the sale of securities of the Trust, whereby the Trust may either agree to sell such securities to the other party to the contract or appoint such other party as its sales agent for such securities. In either case, the contract shall be on such terms and conditions as the Trustees may in their discretion determine not inconsistent with the provisions of this Article IV or the Bylaws; and such contract may also provide for the repurchase or sale of securities of the Trust by such other party as principal or as agent of the Trust and may provide that such other party may enter into selected dealer agreements and servicing and similar agreements to further the purposes of the distribution or repurchase of the securities of the Trust.

Section 4.4 <u>Parties to Contract</u>. Any contract of the character described in Sections 4.2 and 4.3 of this Article IV or in Article VIII hereof may be entered into with any Person, although one or more of the Trustees, officers or employees of the Trust may be an officer, director, trustee, shareholder or member of such other party to the contract, and no such contract shall be invalidated or rendered voidable by reason of the existence of any such relationship, nor shall any Person holding such relationship be liable merely by reason of such relationship for any loss or expense to the Trust under or by reason of said contract or accountable for any profit realized directly or indirectly therefrom, provided that the contract when entered into was reasonable and fair and not inconsistent with the provisions of this Article IV or the Bylaws. The same Person may be the other party to contracts entered into pursuant to Section 4.2 and Section 4.3 or Article VIII hereof, and any individual may be financially interested or otherwise affiliated with Persons who are parties to any or all of the contracts mentioned in this Section 4.4.

**ARTICLE V<br>LIMITATIONS OF LIABILITY AND INDEMNIFICATION** 

Section 5.1 <u>No Personal Liability of Shareholders, Trustees, etc</u>. No Shareholder of the Trust shall be subject in such capacity to any personal liability whatsoever to any Person in connection with Trust Property or the acts, obligations or affairs of the Trust. Shareholders shall have the same limitation of personal liability as is extended to stockholders of a private corporation for profit incorporated under the Delaware General Corporation Law. No Trustee or officer of the Trust shall be subject in such capacity to any personal liability whatsoever to any Person, save only liability to the Trust or its Shareholders arising from bad faith, willful misconduct, gross negligence or reckless disregard for his duty to such Person; and, subject to the foregoing

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exception, all such Persons shall look solely to the Trust Property for satisfaction of claims of any nature arising in connection with the affairs of the Trust. If any Shareholder, Trustee or officer, as such, of the Trust, is made a party to any suit or proceeding to enforce any such liability, subject to the foregoing exception, he shall not, on account thereof, be held to any personal liability. Any repeal or modification of this Section 5.1 shall not adversely affect any right or protection of a Trustee or officer of the Trust existing at the time of such repeal or modification with respect to acts or omissions occurring prior to such repeal or modification.

Section 5.2 <u>Mandatory Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust hereby agrees to indemnify each person who at any time serves as a Trustee, officer or employee of the Trust (each such person being an "<u>indemnitee</u>") against any liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and reasonable counsel fees reasonably incurred by such indemnitee in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which he may be or may have been involved as a party or otherwise or with which he may be or may have been threatened, while acting in any capacity set forth in this <u>Article V</u> by reason of his having acted in any such capacity; provided, however, that no indemnitee shall be indemnified hereunder against any liability to any person or any expense of such indemnitee arising by reason of willful misfeasance, bad faith, or gross negligence in the performance of indemnitee's duties as an indemnitee or reckless disregard of such duties. No indemnitee shall be indemnified for (i) an act or omission of indemnitee that is material to the matter giving rise to a proceeding and was committed in bad faith or was the result of active and deliberate dishonesty, (ii) actual receipt of an improper personal benefit in money, property, or services by indemnitee, or (iii) in the case of a criminal proceeding, the indemnitee had reasonable cause to believe that the act or omission was unlawful. Notwithstanding the foregoing, with respect to any action, suit or other proceeding voluntarily prosecuted by any indemnitee, indemnification shall be mandatory only if the prosecution of such action, suit or other proceeding by such indemnitee (1) was authorized by a majority of the Trustees or (2) was instituted by the indemnitee to enforce his or her rights to indemnification hereunder in a case in which the indemnitee is found to be entitled to such indemnification. The rights to indemnification set forth in this Declaration shall continue as to a person who has ceased to be a Trustee or officer of the Trust and shall inure to the benefit of his or her heirs, executors and personal and legal representatives. No amendment or restatement of this Declaration or repeal of any of its provisions shall limit or eliminate any of the benefits provided to any person who at any time is or was a Trustee or officer of the Trust or otherwise entitled to indemnification hereunder in respect of any act or omission that occurred prior to such amendment, restatement or repeal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, no indemnification shall be made hereunder unless there has been a determination (i) by a final decision on the merits by a court or other body of competent jurisdiction before whom the issue of entitlement to indemnification hereunder was brought that the indemnitee is entitled to indemnification hereunder or, (ii) in the absence of such a decision, by (A) a majority vote of a quorum of those Trustees who are neither Interested Persons of the Trust (as defined in Section 2(a)(19) of the 1940 Act) nor parties to the proceeding ("<u>Disinterested Non-Party Trustees</u>") that the indemnitee is entitled to indemnification hereunder, or (B) if such quorum is not obtainable or even if obtainable, if such majority so directs, independent legal counsel in a written opinion concludes that the indemnitee should be entitled to

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indemnification hereunder. All determinations to make advance payments in connection with the expense of defending any proceeding shall be authorized and made in accordance with the immediately succeeding paragraph (c) of this <u>Section 5.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trust shall make advance payments in connection with the expenses of defending any action with respect to which indemnification might be sought hereunder if the Trust receives a written affirmation by the indemnitee of the indemnitee's good faith belief that the standards of conduct necessary for indemnification have been met and a written undertaking to reimburse the Trust unless it is subsequently determined that the indemnitee is entitled to such indemnification and if a majority of the Trustees determine that the applicable standards of conduct necessary for indemnification appear to have been met. In addition, at least one of the following conditions must be met: (i) the indemnitee shall provide adequate security for his undertaking, (ii) the Trust shall be insured against losses arising by reason of any lawful advances, or (iii) a majority of a quorum of the Disinterested Non-Party Trustees, or if a majority vote of such quorum so direct, independent legal counsel in a written opinion, shall conclude, based on a review of readily available facts (as opposed to a full trial-type inquiry), that there is substantial reason to believe that the indemnitee ultimately will be found entitled to indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The rights accruing to any indemnitee under these provisions shall not exclude any other right that any person may have or hereafter acquire under this Declaration, the Bylaws of the Trust, any statute, agreement, vote of Shareholders or Trustees who are not Interested Persons or any other right to which he or she may be lawfully entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to any limitations provided by the 1940 Act and this Declaration, the Trust shall have the power and authority to indemnify and provide for the advance payment of expenses to employees, agents and other Persons providing services to the Trust or serving in any capacity at the request of the Trust or provide for the advance payment of expenses for such Persons, provided that such indemnification has been approved by a majority of the Trustees.

Section 5.3 <u>No Bond Required of Trustees</u>. No Trustee shall, as such, be obligated to give any bond or other security for the performance of any of his duties hereunder.

Section 5.4 <u>No Duty of Investigation; No Notice in Trust Instruments, etc</u>. No purchaser, lender, transfer agent or other person dealing with the Trustees or with any officer, employee or agent of the Trust shall be bound to make any inquiry concerning the validity of any transaction purporting to be made by the Trustees or by said officer, employee or agent or be liable for the application of money or property paid, loaned, or delivered to or on the order of the Trustees or of said officer, employee or agent. Every obligation, contract, undertaking, instrument, certificate, Share, other security of the Trust, and every other act or thing whatsoever executed in connection with the Trust shall be conclusively taken to have been executed or done by the executors thereof only in their capacity as Trustees under this Declaration or in their capacity as officers, employees or agents of the Trust. The Trustees may maintain insurance for the protection of the Trust Property, the Shareholders, Trustees, officers, employees and agents in such amount as the Trustees shall deem adequate to cover possible tort liability, and such other insurance as the Trustees in their sole judgment shall deem advisable or is required by the 1940 Act.

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Section 5.5 <u>Reliance on Experts, etc</u>. The Trustees may rely in good faith upon advice of counsel or other experts with respect to the meaning and operation of this Declaration and their duties as Trustees hereunder and shall be under no liability for any act or omission in accordance with such advice; provided the Trustees shall be under no liability for failing to follow such advice in good faith. A Trustee shall be fully protected in relying in good faith upon the records of the Trust and upon information, opinions, reports or statements presented by another Trustee or any officer, employee or other agent of the Trust, or by any other Person as to matters the Trustee believes in good faith are within such other Person's professional or expert competence, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits or losses of the Trust or any series or class, or the value and amount of assets or reserves or contracts, agreements or other undertakings that would be sufficient to pay claims and obligations of the Trust or any series or class or to make reasonable provision to pay such claims and obligations, or any other facts pertinent to the existence and amount of assets from which distributions to Shareholders or creditors of the Trust might properly be paid. The appointment, designation or identification of a Trustee as a Chairperson of the Board of Trustees, a member or chair of a committee of the Trustees, an expert on any topic or in any area (including an audit committee financial expert), or the lead independent Trustee, or any other special appointment, designation or identification of a Trustee, shall not impose on that person any standard of care or liability that is greater than that imposed on that person as a Trustee in the absence of the appointment, designation or identification, and no Trustee who has special skills or expertise, or is appointed, designated or identified as aforesaid, shall be held to a higher standard of care by virtue thereof.

**ARTICLE VI<br>SHARES OF BENEFICIAL INTEREST** 

Section 6.1 <u>Beneficial Interest</u>. The beneficial interest in the Trust shall be divided into an unlimited number of Shares of beneficial interest, with a par value of $0.001 per Share. Such Shares of beneficial interest may be issued in different classes and/or series of beneficial interests. The Trust is authorized to issue an unlimited number of Shares, and upon the establishment of any series or class as provided herein, the Trust shall be authorized to issue an unlimited number of Shares of each such series and class, unless otherwise determined, and subject to any conditions set forth, by the Trustees. All references to Shares in this Declaration shall be deemed to be Shares of the Trust and of any or all series or classes, as the context may require. All provisions herein relating to the Trust shall apply equally to each series of the Trust and each class, except as the context otherwise requires. All Shares issued in accordance with the terms hereof, including, without limitation, Shares issued in connection with a dividend in Shares or a split of Shares, shall be fully paid and nonassessable when the consideration determined by the Trustees (if any) therefor shall have been received by the Trust.

Section 6.2 <u>Other Securities</u>. The Trustees may, subject to the requirements of the 1940 Act, authorize and issue such other securities of the Trust as they determine to be necessary, desirable or appropriate, having such terms, rights, preferences, privileges, limitations and restrictions as the Trustees see fit, including preferred interests, debt securities or other senior securities. To the extent that the Trustees authorize and issue preferred shares of any class or series, they are hereby authorized and empowered to amend or supplement this Declaration as they deem

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necessary or appropriate, including to comply with the requirements of the 1940 Act or requirements imposed by the rating agencies or other Persons, all without the approval of Shareholders. Any such supplement or amendment shall be filed as is necessary. In addition, any such supplement or amendment may set forth the rights, powers, preferences and privileges of such preferred shares and any such supplement or amendment shall operate either as additions to or modifications of the rights, powers, preferences and privileges of any such preferred shares under this Declaration. To the extent the provisions set forth in such supplement or amendment conflict with the provisions of this Declaration with respect to any such rights, powers and privileges of the preferred shares, such amendment or supplement shall control. Except as contemplated by the immediately preceding sentence, this Declaration shall control as to the Trust generally and the rights, powers, preferences and privileges of the other Shareholders of the Trust. The Trustees are also authorized to take such actions and retain such persons as they see fit to offer and sell such securities.

Section 6.3 <u>Rights of Shareholders</u>. The Shares shall be personal property giving only the rights specifically set forth in this Declaration. The ownership of the Trust Property of every description and the right to conduct any business herein before described are vested exclusively in the Trust, and the Shareholders shall have no interest therein other than the beneficial interest conferred by their Shares, and they shall have no right to call for any partition or division of any property, profits, rights or interests of the Trust, nor can they be called upon to share or assume any losses of the Trust or suffer an assessment of any kind by virtue of their ownership of Shares. The Shares shall not entitle the holder to preference, preemptive, appraisal, conversion or exchange rights (except as specified by the Trustees when creating the Shares, as in preferred shares). Ownership of Shares shall not make any Shareholder a third-party beneficiary of any contract entered into by the Trust or any class or series.

Section 6.4 <u>Classification or Reclassification</u>. As contemplated by Section 6.2, the variations in the relative rights and preferences as between any classes of common Shares and any potential preferred Shares shall be fixed and determined by the Trustees; provided, that all common Shares or preferred of the Trust or of any series shall be identical to all other common shares or preferred Shares of the Trust or of the same series, as the case may be, except that, to the extent permitted by the 1940 Act, there may be variations between different classes as to allocation of expenses, rights of redemption, special and relative rights and preferences as to dividends and distributions and on liquidation, conversion rights, and conditions under which the several classes shall have separate voting rights.

The following provisions shall be applicable to any division of Shares of the Trust into one or more classes or series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All provisions herein relating to the Shares, or any class or series of Shares of the Trust, including common and preferred shares, shall apply equally to each class of Shares of the Trust or of any series of the Trust, except as the context requires otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The number of Shares of each class that may be issued shall be unlimited. The Trustees may classify or reclassify any Shares or any class of any Shares into one or more other classes that may be established and designated from time to time. The Trust may purchase and hold Shares as treasury shares, reissue such treasury shares for such consideration and on such

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terms as the Trustees may determine, or cancel any Shares of any class acquired by the Trust at the Trustees' discretion from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liabilities, expenses, costs, charges and reserves related to the distribution of, and other identified expenses that should properly be allocated to, the Shares of a particular class or series within the class may be charged to and borne solely by such class or series, and the bearing of expenses solely by a class of shares or series may be appropriately reflected (in a manner determined by the Trustees) and cause differences in the net asset value attributable to, and the dividend, redemption and liquidation rights of, the Shares of different classes or series. Each allocation of liabilities, expenses, costs, charges and reserves by the Trustees in their reasonable judgment shall be conclusive and binding upon the Shareholders of all classes for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The establishment and designation of any class or series of Shares shall be effective upon resolution by a majority of the Trustees, adopting a resolution which sets forth such establishment and designation and the relative rights and preferences of such class or series. Each such resolution shall be incorporated herein by reference upon adoption. The Trustees may, by resolution of a majority of the Trustees, abolish any class or series and the establishment and designation thereof. To the extent the provisions set forth in such resolution conflict with the provisions of this Declaration of Trust with respect to any such rights and privileges of the class or series of Shares, such resolutions shall control.

Section 6.5 <u>Issuance of Shares</u>. The Trustees, in their discretion, may from time to time without vote of the Shareholders issue Shares including preferred shares that may have been established pursuant to Section 6.2, in addition to the then issued and outstanding Shares and Shares held in the treasury, to such party or parties and for such amount and type of consideration, including cash or property, at such time or times, and on such terms as the Trustees may determine, and may in such manner acquire other assets (including the acquisition of assets subject to, and in connection with the assumption of, liabilities) and businesses. The Trustees may from time to time, without a vote of the Shareholders, divide, reclassify or combine the Shares into a greater or lesser number without thereby changing the proportionate beneficial interest in such Shares. Issuances and redemptions of Shares may be made in whole Shares and/or 1/1,000ths of a Share or multiples thereof as the Trustees may determine.

Section 6.6 <u>Register of Shares</u>. A register shall be kept at the offices of the Trust, or any transfer agent duly appointed by the Trustees under the direction of the Trustees, which shall contain the names and addresses of the Shareholders and the number of Shares held by them respectively and a record of all transfers thereof. Separate registers shall be established and maintained for each class or series of Shares. Each such register shall be conclusive as to who are the holders of the Shares of the applicable class or series of Shares and who shall be entitled to receive dividends or distributions or otherwise to exercise or enjoy the rights of Shareholders. No Shareholder shall be entitled to receive payment of any dividend or distribution, nor to have notice given to him as herein provided, until he has given his address to a transfer agent or such other officer or agent of the Trustees as shall keep the register for entry thereon. It is not contemplated that certificates will be issued for the Shares; however, the Trustees, in their discretion, may authorize the issuance of share certificates and promulgate appropriate fees therefore and rules and regulations as to their use.

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Section 6.7 <u>Transfer Agent and Registrar</u>. The Trustees shall have power to employ a transfer agent or transfer agents, and a registrar or registrars, with respect to the Shares. The transfer agent or transfer agents may keep the applicable register and record therein the original issues and transfers, if any, of the said Shares. Any such transfer agents and/or registrars shall perform the duties usually performed by transfer agents and registrars of certificates of stock in a corporation, as modified by the Trustees.

Section 6.8 <u>Transfer of Shares</u>. To the fullest extent permitted by law, prior to an Exchange Listing (if any) (or such other time pursuant to any agreements between the Trust and Shareholders), the Shares shall not be transferable, except as determined otherwise by the Advisor in its sole discretion, and any transfer of Shares shall be made on the records of the Trust only by the record holder thereof or by its agent thereto duly authorized in writing, upon delivery to the Trustees or a transfer agent of the Trust of a duly executed instrument of transfer, together with such evidence of the genuineness of each such execution and authorization and of other matters (including compliance with any securities laws and contractual restrictions) as may reasonably be required. If a transfer is approved by the Advisor, upon such delivery the transfer shall be recorded on the applicable register of the Trust. Until such record is made, the Shareholder of record shall be deemed to be the holder of such Shares for all purposes hereof and neither the Trustees nor any transfer agent or registrar nor any officer, employee or agent of the Trust shall be affected by any notice of the proposed transfer. Any person becoming entitled to any Shares in consequence of the death, bankruptcy or incompetence of any Shareholder, or otherwise by operation of law, shall be recorded on the applicable register of Shares as the holder of such Shares upon production of the proper evidence thereof to the Trustees or a transfer agent of the Trust, but until such record is made, the Shareholder of record shall be deemed to be the holder of such for all purposes hereof, and neither the Trustees nor any transfer agent or registrar nor any officer or agent of the Trust shall be affected by any notice of such death, bankruptcy or incompetence, or other operation of law.

Section 6.9 <u>Notices</u>. Subject to the 1940 Act and/or other applicable law, notices and all other communications to Shareholders shall be in writing and delivered personally, or sent by electronic transmission to an electronic mail address provided by the Shareholder or mailed to the Shareholders at their addresses appearing on the books of the Trust or given by a document publicly filed by the with Securities and Exchange Commission or given as otherwise provided herein. Notices to Trustees shall be oral or by telephone or in writing delivered personally or mailed to the Trustees at their addresses appearing on the books of the Trust or by electronic transmission to an electronic mail address provided by the Trustee. Notice by mail shall be deemed to be given at the time when the same shall be mailed, notice by electronic transmission shall be deemed given at the time when sent, and notice by a document publicly filed by with the Securities and Exchange Commission shall be deemed given at the time the Trust files such document. Subject to the provisions of the 1940 Act, notice to Trustees need not state the purpose of a regular or special meeting.

Section 6.10 <u>Derivative Actions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No person, other than a Trustee, who is not a Shareholder shall be entitled to bring any derivative action, suit or other proceeding on behalf of the Trust. No Shareholder may

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maintain a derivative action on behalf of the Trust unless holders of at least fifty one percent (51%) of the outstanding Shares join in the bringing of such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to the requirements set forth in Section 3816 of the Delaware Statutory Trust Act, a Shareholder may bring a derivative action on behalf of the Trust only if the following conditions are met: (i) the Shareholder or Shareholders must make a pre-suit demand upon the Trustees to bring the subject action unless an effort to cause the Trustees to bring such an action is not likely to succeed; and a demand on the Trustees shall only be deemed not likely to succeed and therefore excused if a majority of the Trustees, or a majority of any committee established to consider the merits of such action, is composed of Trustees who are not "independent trustees" (as that term is defined in the Delaware Statutory Trust Act); and (ii) unless a demand is not required under clause (i) of this paragraph, the Trustees must be afforded a reasonable amount of time to consider such Shareholder request and to investigate the basis of such claim; and the Trustees shall be entitled to retain counsel and other advisors in considering the merits of the request and may require an undertaking by the Shareholders making such request to reimburse the Trust for the expense of any such advisors in the event that the Trustees determine not to bring such action. For purposes of this <u>Section 6.10</u>, the Trustees may designate a committee of one or more Trustees to consider a Shareholder demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This <u>Section 6.10</u> shall not apply to any claims brought under U.S. federal securities law, or the rules and regulations thereunder.

**ARTICLE VII<br>CAPITAL CALLS AND CERTAIN ERISA MATTERS** 

Section 7.1 <u>Capital Commitment; Drawdowns</u>. Prior to an Exchange Listing (if any), unless otherwise determined by the Trustees, prospective Shareholders will make a Capital Commitment pursuant to one or more subscription agreements entered into with the Trust, pursuant to which Shareholders agree to contribute capital to the Trust in exchange for Shares. After the initial closing, the Trust may permit one or more additional closings, which may occur from time to time as determined by the Trust.

Section 7.2 <u>Certain ERISA Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision herein, if and to the extent that any class of Shares does not constitute Publicly Offered Securities and the Trust does not qualify as a "venture capital operating company" within the meaning of the Plan Assets Regulation (a "<u>VCOC</u>"), in order to avoid the possibility that the underlying assets of the Trust could be treated as "plan assets" of a Benefit Plan Investor pursuant to the Plan Assets Regulation, the Trust, at the direction of the Board of Trustees or any duly-authorized committee of the Board, or, if authorized by the Board, any officer of the Trust or the Advisor on behalf of the Trust, shall have the power to (1) require any Person proposing to acquire Shares to furnish such information as may be necessary to determine whether such person is (i) a Benefit Plan Investor, or (ii) an ERISA Controlling Person, (2) exclude any Shareholder or potential Shareholder from purchasing Shares, (3) prohibit any repurchase of Shares by any Shareholder, and (4) repurchase any or all Shares held by a Benefit Plan Investor or other Shareholder for such price and on such other terms and

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conditions as may be determined by or at the direction of the Board; provided, however, if any class of Shares constitutes Publicly Offered Securities and the Trust does not intend to qualify as a VCOC then no Benefit Plan Investors shall be permitted to purchase or hold any class of Shares that does not constitute Publicly Offered Securities and the Board shall have authority including, without limitation, the powers described in this Section 7.2 to give effect to this restriction; (b) In the event the Trust intends to qualify as a VCOC, prior to the date that the Trust makes its first investment intended to be a qualifying VCOC investment (the "First Investment Date"), the Capital Commitment of each Plan Investor shall be deferred and shall not be drawn down prior to the satisfaction of the conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the date of such drawdown is on or after the First Investment Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Board of Trustees or any duly-authorized committee of the Board, or, if authorized by the Board, any officer of the Trust or the Advisor on behalf of the Trust, determines that the Trust should qualify as a VCOC as of the First Investment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Plan Investor that enters into a subscription agreement to acquire Shares prior to the First Investment Date shall not be admitted or treated as a Shareholder, nor registered as such, prior to the time at which the conditions set forth above are satisfied. Any capital received in error (despite the provisions of this Section 7.2) by the Trust from a Plan Investor before the First Investment Date shall be refunded to such Plan Investor, but such refund shall be without prejudice to the Board of Trustees 's right to draw down in the future any Plan Investor's Capital Commitment. In the event that on any closing of an investment, both Benefit Plan Investors and persons that are not Benefit Plan Investors are to be admitted as Shareholders, the persons that are not Benefit Plan Investors shall be admitted immediately prior to the admission of any Benefit Plan Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On, or at a reasonable time after, the First Investment Date, the Board or the Advisor shall deliver to each Plan Investor an opinion of counsel (which counsel shall be selected by the Board or Advisor) with respect to the initial valuation date (as described in the Plan Assets Regulation) which shall state whether the Trust should qualify as a VCOC on the First Investment Date.

**ARTICLE VIII<br>CUSTODIANS** 

Section 8.1 <u>Appointment and Duties</u>. The Trustees may employ a custodian or custodians, meeting the qualifications for custodians for portfolio securities of investment companies contained in the 1940 Act, as custodian with respect to the assets of the Trust. Any custodian shall have authority as agent of the Trust as determined by the custodian agreement or agreements, but subject to such restrictions, limitations and other requirements, if any, as may be contained in the Bylaws of the Trust and the 1940 Act, including without limitation authority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to hold the securities owned by the Trust and deliver the same upon written order;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to receive any receipt for any moneys due to the Trust and deposit the same in its own banking department (if a bank) or elsewhere as the Trustees may direct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to disburse such funds upon orders or vouchers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if authorized by the Trustees, to keep the books and accounts of the Trust and furnish clerical and accounting services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if authorized by the Trustees, to compute the net income or net asset value of the Trust; all upon such basis of compensation as may be agreed upon between the Trustees and the custodian.

The Trustees may also authorize each custodian to employ one or more sub-custodians from time to time to perform such of the acts and services of the custodian and upon such terms and conditions, as may be agreed upon between the custodian and such sub-custodian and approved by the Trustees, provided that in every case such sub-custodian shall meet the qualifications for custodians contained in the 1940 Act.

Section 8.2 <u>Central Certificate System</u>. Subject to such rules, regulations and orders as the Commission may adopt, the Trustees may direct the custodian to deposit all or any part of the securities owned by the Trust in a system for the central handling of securities established by a national securities exchange or a national securities association registered with the Commission under the Securities Exchange Act of 1934, as amended, or such other Person as may be permitted by the Commission, or otherwise in accordance with the 1940 Act, pursuant to which system all securities of any particular class of any issuer deposited within the system are treated as fungible and may be transferred or pledged by bookkeeping entry without physical delivery of such securities, provided that all such deposits shall be subject to withdrawal only upon the order of the Trust.

**ARTICLE IX<br>REDEMPTION** 

Section 9.1 <u>Redemptions</u>. Holders of Shares of the Trust shall not be entitled to require the Trust to repurchase or redeem Shares of the Trust.

Section 9.2 <u>Disclosure of Holding</u>. The holders of Shares or other securities of the Trust shall, upon demand, disclose to the Trustees in writing such information with respect to direct and indirect ownership of Shares or other securities of the Trust as the Trustees deem necessary to comply with the provisions of the Code, the 1940 Act or other applicable laws or regulations, or to comply with the requirements of any other taxing or regulatory authority.

Section 9.3 <u>Redemption by Trust</u>. Each Share is subject to redemption (out of the assets of the Trust) by the Trust at the redemption price equal to the then current net asset value per Share of the Trust determined in accordance with Section 10.1 at any time if the Trustees determine in their sole discretion that a Shareholder has breached any of its representations or warranties contained in such Shareholder's subscription agreement with the Trust, and upon such redemption

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the holders of the Shares so redeemed shall have no further right with respect thereto other than to receive payment of such redemption price.

**ARTICLE X<br>NET ASSET VALUE AND DISTRIBUTIONS** 

Section 10.1 <u>Net Asset Value</u>. The net asset value of each outstanding Share of the Trust shall be determined at such time or times on such days as the Trustees may determine, in accordance with the 1940 Act. The method of determination of net asset value shall be determined by the Trustees. The power and duty to make the net asset value calculations may be delegated by the Trustees.

Section 10.2 <u>Distributions to Shareholders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustees may from time to time distribute ratably among the Shareholders of any class of Shares, or any series of any such class, in accordance with the number of outstanding full and fractional Shares of such class or any series of such class, such proportion of the net profits, surplus (including paid-in surplus), capital or assets held by the Trust as the Trustees may deem proper or as may otherwise be determined in accordance with this Declaration. Any such distribution may be made in cash or property (including without limitation any type of obligations of the Trust or any assets thereof) or Shares of any class or series or any combination thereof, and the Trustees may distribute ratably among the Shareholders of any class of shares or series of any such class, in accordance with the number of outstanding full and fractional Shares of such class or any series of such class, additional Shares of any class or series in such manner, at such times and on such terms as the Trustees may deem proper or as may otherwise be determined in accordance with this Declaration. The Trustees may cause the Trust to enter into a distribution reinvestment program with terms and conditions as agreed to by the Trustees from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Distributions pursuant to this <u>Section 10.2</u> may be among the Shareholders of record of the applicable class or series of Shares at the time of declaring a distribution or among the Shareholders of record at such later date as the Trustees shall determine and specify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustees may always retain from the net profits such amount as they may deem necessary to pay the debts or expenses of the Trust or to meet obligations of the Trust, or as they otherwise may deem desirable to use in the conduct of its affairs or to retain for future requirements or extensions of the business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Inasmuch as the computation of net income and gains for Federal income tax purposes may vary from the computation thereof on the books, the provisions of this <u>Section 10.2</u> shall be interpreted to give the Trustees the power in their discretion to distribute for any fiscal year, during which the Trust intends to qualify as a RIC, as ordinary dividends and as capital gains distributions, respectively, additional amounts sufficient to enable the Trust to avoid or reduce liability for taxes.

Section 10.3 <u>Power to Modify Foregoing Procedures</u>. Notwithstanding any of the foregoing provisions of this Article X, the Trustees may prescribe, in their absolute discretion

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except as may be required by the 1940 Act, such other bases and times for determining the per share asset value of the Trust's Shares or net income, or the declaration and payment of dividends and distributions as they may deem necessary or desirable for any reason, including to enable the Trust to comply with any provision of the 1940 Act, or any securities exchange or association registered under the Securities Exchange Act of 1934, as amended, or any order of exemption issued by the Commission, all as in effect now or hereafter amended or modified.

**ARTICLE XI<br>SHAREHOLDERS** 

Section 11.1 <u>Meetings of Shareholders</u>. The Trust is not required to have annual meetings of the Shareholders. A special meeting of the Shareholders may be called at any time by a majority of the Trustees, the Chairperson or the President and shall be called by any Trustee for any proper purpose upon written request of Shareholders of the Trust holding in the aggregate not less than thirty-three and one-third-of-one percent (33 1/3%) of the outstanding common Shares of the Trust, such request specifying the purpose or purposes for which such meeting is to be called, provided that in the case of a meeting called by any Trustee at the request of Shareholders for the purpose of electing Trustees or removing the Advisor, written request of Shareholders of the Trust holding more than fifty-one percent (51%) of the outstanding Shares of the Trust or class or series of Shares having voting rights on the matter shall be required. For a special Shareholder meeting to be called for a proper purpose (as used in the preceding sentence), it is not a requirement that such purpose relate to a matter on which Shareholders are entitled to vote, provided that if such meeting is called for a purpose for which Shareholders are not entitled to vote, no vote will be taken at such meeting.

Section 11.2 <u>Voting</u>. Shareholders shall have no power to vote on any matter except matters on which a vote of Shareholders is required by the 1940 Act, this Declaration or resolution of the Trustees or, after an Exchange Listing (if any), by any applicable stock exchange. This Declaration expressly provides that no matter for which voting, consent or other approval is required by the Delaware Statutory Trust Act in the absence of a contrary provision in the Declaration shall require any vote. Except as otherwise provided herein, any matter required to be submitted to Shareholders and affecting one or more classes or series of Shares shall require approval by the required vote of all of the affected classes and series of Shares voting together as a single class; provided, however, that as to any matter with respect to which a separate vote of any class or series of Shares is required by the 1940 Act, such requirement as to a separate vote by that class or series of Shares shall apply in addition to a vote of all of the affected classes and series voting together as a single class. Shareholders of a particular class or series of Shares shall not be entitled to vote on any matter that affects only one or more other classes or series of Shares. Each whole Share shall be entitled to one vote as to any matter on which it is entitled to vote and each fractional Share shall be entitled to a proportionate fractional vote. There shall be no cumulative voting in the election or removal of Trustees. Except as provided in Section 11.1, Trustees shall be elected by a plurality of votes.

Section 11.3 <u>Record Date; Notice of Meeting; Postponement and Adjournment</u>. For the purposes of determining the Shareholders who are entitled to notice of and to vote at any meeting the Trustees may, without closing the transfer books, fix a date not more than ninety (90) days nor

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less than ten (10) days prior to the date of such meeting of Shareholders as a record date for the determination of the Persons to be treated as Shareholders of record for such purposes. Notice of all meetings of Shareholders, stating the time, place and purposes of the meeting, shall be given by the Trustees to each Shareholder of record entitled to vote thereat at least ten (10) days and not more than ninety (90) days (or such longer period as the Trustees may determine) before the meeting or otherwise in compliance with applicable law. Only the business stated in the notice of the meeting shall be considered at such meeting. Prior to the date upon which any meeting of Shareholders is to be held. Any Shareholders' meeting may be adjourned by the chairperson of the meeting one or more times for any lawful reason, including the failure of a quorum to be present at the meeting with respect to any proposal or the failure of any proposal to receive sufficient votes for approval. No Shareholder vote shall be required for any adjournment. A Shareholders' meeting may be adjourned by the chairperson of the meeting as to one or more proposals regardless of whether action has been taken on other matters. No notice of adjournment of a meeting to another time or place need be given to Shareholders if such time and place are announced at the meeting at which the adjournment is taken or notice is given to persons present at the meeting unless the adjourned meeting is not held within one hundred and twenty (120) days (or such longer period as the Trustees may determine) after the record date. Any adjourned meeting may be held at such time and place as determined by the chairperson of the meeting if such time and place are announced at the meeting at which the adjournment is taken or otherwise by the Board of Trustees. Any business that might have been transacted at the original meeting may be transacted at any adjourned meeting. The Shareholders of record entitled to vote at a Shareholders' meeting shall be deemed the Shareholders of record at any meeting that has been postponed or reconvened after one or more adjournments, unless the Trustees have fixed a new record date. If, after a postponement or adjournment, a new record date is fixed for the postponed or adjourned meeting, the secretary shall give notice of the postponed or adjourned meeting to Shareholders of record entitled to vote at such meeting. If a quorum is present with respect to any one or more proposals, the chairperson of the meeting may, but shall not be required to, cause a vote to be taken with respect to any such proposal or proposals which vote can be certified as final and effective notwithstanding the adjournment of the meeting with respect to any other proposal or proposals.

Section 11.4 <u>Quorum and Required Vote</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise required by the 1940 Act, the holders of one third of the Shares entitled to vote on any matter at a meeting present in person or by proxy shall constitute a quorum at such meeting of the Shareholders for purposes of conducting business on such matter. The absence from any meeting, in person or by proxy, of a quorum of Shareholders for action upon any given matter shall not prevent action at such meeting upon any other matter or matters which may properly come before the meeting, if there shall be present thereat, in person or by proxy, a quorum of Shareholders in respect of such other matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to any provision of applicable law, this Declaration or a resolution of the Trustees specifying a greater or a lesser vote requirement for the transaction of any item of business at any meeting of Shareholders, (i) the affirmative vote of a majority of the Shares present in person or represented by proxy and entitled to vote on the subject matter shall be the act of the Shareholders with respect to such matter, and (ii) where a separate vote of one or more classes or series of Shares is required on any matter, the affirmative vote of a majority of the Shares of such

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class or series of Shares present in person or represented by proxy at the meeting shall be the act of the Shareholders of such class or series with respect to such matter.

Section 11.5 <u>Proxies, etc</u>. At any meeting of Shareholders, any holder of Shares entitled to vote thereat may vote by properly executed or authorized proxy, provided that no proxy shall be voted at any meeting unless it shall have been placed on file with the Trust, or with such other officer or agent of the Trust as an authorized officer of the Trust may direct, for verification prior to the time at which such vote shall be taken. Pursuant to a resolution of a majority of the Trustees, proxies may be solicited in the name of one or more Trustees or one or more of the officers or employees of the Trust. No proxy shall be valid after the expiration of eleven (11) months from the date thereof, unless otherwise provided in the proxy. Only Shareholders of record shall be entitled to vote. Each full Share shall be entitled to one vote and fractional Shares shall be entitled to a vote of such fraction. When any Share is held jointly by several persons, any one of them may vote at any meeting in person or by proxy in respect of such Share, but if more than one of them shall be present at such meeting in person or by proxy, and such joint owners or their proxies so present disagree as to any vote to be cast, such vote shall not be received in respect of such Share. A proxy purporting to be executed or authorized by or on behalf of a Shareholder shall be deemed valid unless challenged at or prior to its exercise and the burden of proving invalidity shall rest on the challenger. If the holder of any such Share is a minor or a person of unsound mind, and subject to guardianship or to the legal control of any other person as regards the charge or management of such Share, he may vote by his guardian or such other person appointed or having such control, and such vote may be given in person or by proxy.

Section 11.6 <u>Reports</u>. The Trustees shall cause to be prepared at least annually and more frequently to the extent and in the form required by law, regulation or any exchange on which Trust Shares are listed a report of operations containing a balance sheet and statement of income and undistributed income of the Trust prepared in conformity with generally accepted accounting principles and an opinion of an independent public accountant on such financial statements. Copies of such reports shall be disseminated to all Shareholders of record within the time required by the 1940 Act, and in any event within a reasonable period preceding the meeting of Shareholders. The Trustees shall, in addition, furnish to the Shareholders at least semi-annually to the extent required by law, interim reports containing an unaudited balance sheet of the Trust as of the end of such period and an unaudited statement of income and surplus for the period from the beginning of the current fiscal year to the end of such period.

Section 11.7 <u>Inspection of Records</u>. The records of the Trust shall be open to inspection by Shareholders to the extent permitted by Section 3819 of the Delaware Statutory Trust Act but subject to such reasonable regulation as the Trustees may determine.

Section 11.8 <u>Delivery by Electronic Transmission or Otherwise</u>. Notwithstanding any provision in this Declaration to the contrary, to the fullest extent permitted by law, any notice, proxy, vote, consent, report, instrument or writing of any kind or any signature referenced in, or contemplated by, this Declaration or the Bylaws may, in the sole discretion of the Trustees, be given, granted or otherwise delivered by electronic transmission (within the meaning of the Delaware Statutory Trust Act), including via the internet, by a document publicly filed with the Securities and Exchange Commission or in any other manner permitted by applicable law.

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Section 11.9 <u>Shareholder Action by Written Consent</u>. Any action required or permitted to be taken at any meeting of the Shareholders may be taken without a meeting, without a prior notice and without a vote if (a) prior to the Trust's filing of its election to be regulated as a business development company under the 1940 Act, the consent, setting forth the action to be taken, is given in writing or by electronic transmission by the Shareholders having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all Shareholders entitled to vote thereon were present and voted, and (b) following the Trust's filing of its election to be regulated as a business development company under the 1940 Act, sixty-six and two-thirds-of-one percent (66 2/3%) of the outstanding Shares consent, setting forth the action to be taken, is given in writing or by electronic transmission by each Shareholder entitled to vote thereon, and in each case, is filed with the records of the meetings of Shareholders.

Section 11.10 <u>Meetings by Remote Communication</u>. The Trustees may provide for meetings by remote communication as provided in the Bylaws or as otherwise determined by the Trustees.

**ARTICLE XII<br>**<br> [*Intentionally Omitted*]

**ARTICLE XIII<br>Capital Accounts; Allocations**

The provisions of this Article XIII shall be applicable until such time that the Trust files an election for treatment as a corporation for federal income tax purposes.

Section 13.1 <u>Capital Accounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A capital account ("<u>Capital Account</u>") shall be maintained for each Shareholder with respect to the Shares it holds. Each Capital Account shall be maintained and adjusted in accordance with Treasury Regulations Sections 1.704-1(b)(2)(iv) and 1.704-2 and the provisions of this Declaration related to the maintenance of Capital Accounts shall be interpreted and applied in a manner consistent therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Capital Account maintained for a Shareholder shall have an initial balance equal to the amount of cash constituting such Shareholder's initial Capital Contribution. Thereafter each such Capital Account shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increased by the sum of (A) any additional Capital Contributions made by such Shareholder (to the extent not previously counted); (B) the portion of any Net Profits (or items thereof) allocated to such Capital Account; (C) any decreases in any reserves recorded by the Trust and allocated by the Trustees to such Capital Account; and (iv) any amounts allocated to such Capital Account by the Trustees in connection with a Shareholder's default in the payment of its Capital Contributions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reduced by the sum of (A) the amount of any cash and the fair market value of any property withdrawn by or distributed to such Shareholder; (B) the

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portion of any Net Losses (or items thereof) allocated to such Capital Account; (C) fees and expenses incurred or paid by the Trust and any other items charged to such Capital Account; (D) any increases in reserves recorded by the Trust and allocated by the Trustees to such Capital Account and (E) any amounts reduced from such Capital Account as a result of such Shareholder's default in the payment of its Capital Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Shareholder with a deficit balance in its Capital Account shall have any obligation to make any contribution to the capital of the Trust with respect to such deficit, and such deficit shall not be considered a debt owed to the Trust or to any other person for any purpose whatsoever.

Section 13.2 <u>Allocations of Profit or Loss</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Except as otherwise provided in this Section 13.2 or elsewhere in this Declaration, the Net Profits or Net Losses of the Trust (and to the extent necessary, individual items of income, gain, loss or deduction) shall be allocated among all Shareholders *pro rata* based on the number of Shares held by each Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Trustees, in their sole discretion, may specially allocate items of Net Profit and Net Loss that are borne by Shareholders on a non-*pro rata* basis in a manner that equitably reflects the manner in which such items are economically borne by the Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Special Allocations</u>. Notwithstanding anything herein to the contrary, the Trust shall make special allocations of the income, gain, loss, deduction or credit (or items thereof) of the Trust in order to comply with certain requirements of Treasury Regulations Sections 1.704-1(b) and 1.704-2 (including the minimum gain chargeback requirement in Treasury Regulations Section 1.704-2(f), the partner minimum gain chargeback requirement in Treasury Regulations Section 1.704-2(i)(4) and the qualified income offset requirement of the alternate test for economic effect in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tax Allocations</u>. For each tax year, items of income, gain, loss, deduction and credit shall be allocated for income tax purposes among the Shareholders in accordance with the allocations of the corresponding items for capital account purposes. These allocations shall be made in accordance with the provisions of Section 704(b) and Section 704(c) of the Code. In the event the value of any Trust Property is adjusted, or an asset is contributed to the Trust at a value that differs from its adjusted tax basis, subsequent allocations of income, gain, loss and deduction with respect to such asset for income tax purposes shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its market value in the same manner as under Section 704(c) of the Code and the Treasury Regulations promulgated thereunder. Any elections or other decisions relating to such allocations shall be made by the Trustees in their sole discretion.

Section 13.3 <u>Miscellaneous</u>. Notwithstanding any other provision of this Declaration, the Trustees, in their sole discretion, may make such additional adjustments to the Capital Accounts

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and the allocations provided for herein which the Trustees deem necessary or desirable, including, for example, adjustments to (a) accurately reflect the allocations intended by this Declaration, (b) comply with the provisions or intent of this Declaration, (c) create reserves or (d) comply with provisions of the Code or other controlling law; such adjustments shall be determined in good faith by the Trustees whose determination shall be final, binding and conclusive on all of the Shareholders.

**ARTICLE XIV<br>Tax Matters**

Section 14.1 <u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Partnership Representative</u>. The Trustees shall appoint the Trust's partnership representative ("<u>Partnership Representative</u>") as provided in Section 6223(a) of the Code, and the Trustees shall also appoint any required designated individual to act on behalf of the Partnership Representative. In such capacity, the Partnership Representative (and any designated individual) shall have sole discretion to make or refrain from making any election or otherwise act on behalf of the Trust in any audit proceeding involving the Trust. Each Shareholder (or former Shareholder) agrees to indemnify the Trust for any taxes (and related interest, penalties or other charges or expenses) payable by the Trust and attributable to such Shareholder's (or former Shareholder's) interest in the Trust, as reasonably determined by the Partnership Representative. The foregoing obligation shall survive the withdrawal of any Shareholder, the dissolution and liquidation of the Trust, or both. Any taxes (and related interest, penalties or other charges or expenses) that are payable by the Trust shall, to the extent attributable to a Shareholder's (or former Shareholder's) interest in the Trust, be treated as distributed to such Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnity</u>. To the maximum extent permitted under applicable law, the Partnership Representative (and any designated individual) shall be entitled to indemnification from the Trust for any act performed by it within the scope of its duties as such, unless such act constitutes gross negligence or willful misconduct, <u>provided</u> that any indemnification under this Section Section 14.1(b) shall be provided out of and to the extent of Trust Property only and no Shareholder shall have any personal liability on account of any such indemnification obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Expenses</u>. All reasonable expenses incurred by the Partnership Representative (or any designated individual) in connection with any administrative proceeding before the IRS or other tax authority or judicial review of such proceeding, including reasonable attorneys' fees, shall be deemed a Trust expense.

Section 14.2 <u>Treatment</u>. Each Shareholder agrees not to treat, on its U.S. federal income tax return or in any claim for a refund, any item of income, gain, loss, deduction or credit in a manner inconsistent with the treatment of such item by the Trust.

Section 14.3 <u>Tax Distributions</u>. The Trustees may, in their discretion, cause the Trust to distribute distributable funds to a Shareholder equal to the excess of the Tax Liability of such Shareholder in a particular fiscal quarter over the distributions otherwise made to such Shareholder in the fiscal quarter. If the Trust make any such distribution to one or more Shareholders in any

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fiscal quarter, the Trust shall similarly make such a distribution to each Shareholder, without duplication, based on each Shareholder's Tax Liability for the applicable fiscal quarter (treating each such Shareholder for such purposes as if such person is taxable for U.S. federal income tax purposes and without regard to the Person's actual tax status). Any such distributions will be made out of, and reduce, distributable funds of the Trust. The Trustees do not intend to make such distributions to any Shareholder to the extent that aggregate distributions made to the Shareholder during a fiscal quarter are sufficient to meet the estimated Tax Liability of such Shareholder, as determined in the sole discretion of the Advisor.

Section 14.4 <u>Elections; Shareholder Information</u>. The Trustees may, in their sole discretion, cause the Trust to make or revoke any election, including (but not limited to) an election by the Trust under Section 754 of the Code. Each Shareholder agrees to promptly furnish to the Trust such information as may be required or requested for the Trust to comply with any tax accounting, withholding and reporting obligations, including any obligation to make mandatory basis adjustments to Trust Property pursuant to Section 754 of the Code. Each Shareholder agrees that, in the event that such Shareholder fails to provide such information, the Trustees, the Advisor and the Trust may take all actions necessary to ensure that such failure does not subject the Trust to liability or, in the event that such failure does result in such liability, to ensure that such Shareholder ultimately bears such liability. Such actions may include, without limitation, (a) reporting tax information to the appropriate authorities in respect of the Shareholders, (b) withholding, deducting from the Shareholder's Capital Account, or otherwise collecting any such tax liability or related cost or expense from the Shareholder, and/or (c) withdrawing, transferring or otherwise terminating the Shareholder's interest in the Trust. To the extent that an auditor of the Trust recommends modifications to the proposed structure of the Trust to comply with changes in U.S. generally accepted accounting principles, the Trustees may cause the Trust make such modifications in their sole discretion.

Section 14.5 <u>Fiscal Year</u>. The fiscal year of the Trust for tax and financial accounting purposes (the "Fiscal Year") shall be the year ending September 30 (unless a different fiscal year is required by the Code), provided, however, that the Trust's books shall be adjusted to allocate Net Profits or Net Losses among the Shareholders according to Section 13.2, and that, following the Trust's conversion to a business development company, the Trust may adopt a different Fiscal Year.

**ARTICLE XV<br>WIND DOWN; AMENDMENT; MERGERS, ETC.** 

Section 15.1 <u>Wind Down</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustees may, to the extent they deem appropriate, adopt a plan of liquidation at any time, which plan of liquidation may set forth the terms and conditions for implementing the dissolution and liquidation of the Trust under this Article XV. Shareholders of the Trust shall not be entitled to vote on the adoption of any such plan or the dissolution and liquidation of the Trust under this Article XV except to the extent required by the 1940 Act or contemplated by <u>Section 15.1(b)</u> hereof. After an Exchange Listing (if any), the Trust may be

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dissolved by the affirmative vote or consent of at least a majority of the Trustees and seventy-five percent (75%) of the Continuing Trustees, without the vote of the Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the winding up and liquidation of the Trust, including the distribution to the Shareholders of any assets of the Trust, a majority of the Trustees shall execute and lodge among the records of the Trust an instrument in writing setting forth the fact of such termination and shall execute and file a certificate of cancellation with the Secretary of State of the State of Delaware. Upon termination of the Trust, the Trustees shall thereupon be discharged from all further liabilities and duties hereunder, and the rights and interests of all Shareholders shall thereupon cease.

Section 15.2 <u>Amendment Procedure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustees may, without Shareholder vote, amend or otherwise supplement this Declaration. Shareholders shall only have the right to vote: (i) on any amendment to this <u>Section 15.2(a)</u>, (ii) on any amendment that would adversely affect the powers, preferences or special rights of the Shares as determined by the Trustees in good faith and (iii) on any amendment submitted to them by the Trustees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Declaration, in connection with an Exchange Listing (if any) or otherwise deemed appropriate by the Trustees, the Trustees may, without the approval or vote of the Shareholders, amend or supplement this Declaration or Bylaws, as applicable, in any manner, including, without limitation to classify the Board of Trustees, to permit annual meetings of Shareholders, to impose advance notice provisions or requirements for the bringing of Shareholder nominations or proposals, to impose super-majority approval for certain types of transactions, to impose "control share" type provisions and to otherwise add provisions that may be deemed adverse to Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) An amendment duly adopted by the Board of Trustees and, if required, the Shareholders as aforesaid, shall become effective at the time of such adoption or at such other time as may be designated by the Board of Trustees or Shareholders, as the case may be.

Section 15.3 <u>Subsidiaries</u>. Without approval or vote by Shareholders, the Trustees may cause to be organized or assist in organizing one or more corporations, trusts, partnerships, associations or other organizations to take over all of the Trust Property or to carry on any business in which the Trust shall directly or indirectly have any interest and to sell, convey and transfer all or a portion of the Trust Property to any such corporation, trust, limited liability company, association or organization in exchange for the shares or securities thereof, or otherwise, and to lend money to, subscribe for the shares or securities of and enter into any contracts with any such corporation, trust, limited liability company, partnership, association or organization, or any corporation, partnership, trust, limited liability company, association or organization in which the Trust holds or is about to acquire shares or any other interests.

Section 15.4 <u>Merger, Consolidation, Incorporation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything else herein, a majority of Trustees and seventy-five percent (75%) of the Continuing Trustees may, in their sole discretion and without Shareholder approval unless such approval is required by the 1940 Act or, after an Exchange

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Pursuant to and in accordance with the provisions of Section 3815(f) of the Delaware Statutory Trust Act, and notwithstanding anything to the contrary contained in this Declaration, an agreement of merger or consolidation approved by the Trustees in accordance with this <u>Section 15.4</u> may affect any amendment to the Declaration or effect the adoption of a new declaration of the Trust or change the name of the Trust if the Trust is the surviving or resulting entity in the merger or consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything else herein, the Trustees may, without Shareholder approval unless such approval is required by the 1940 Act, create one or more statutory or business trusts, limited liability companies, limited partnerships or other entities or associations to which all or any part of the assets, liabilities, profits or losses of the Trust may be transferred and may provide for the conversion of Shares in the Trust into beneficial or ownership interests in any such newly created trust or trusts, limited liability companies, limited partnerships or other entities or associations, or any series or classes thereof.

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**ARTICLE XVI<br>MISCELLANEOUS** 

Section 16.1 <u>Power of Attorney</u>. By execution of a counterpart to this Declaration or execution of a subscription agreement with the Trust, each Shareholder agrees to be bound by the terms of this Declaration and hereby appoints the Trustees and each officer of the Trust (and any substitute or successor Trustees or any substitute or successor officer of the Trust) (and, if appointed, any liquidator of the Trust), each acting individually, as the true and lawful representative and attorney-in-fact of such Shareholder, in such Shareholder's name, place and stead:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to complete or correct, on behalf of such Shareholder, all documents to be executed by such Shareholder in connection with such Shareholder's subscription for Shares or other securities in, and admission to, the Trust, including, without limitation, filling in or amending amounts, dates, and other pertinent information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to make, execute, sign, acknowledge, swear to and file:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any and all instruments, certificates, and other documents that may be deemed necessary or desirable to effect the termination and winding up of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any instrument, agreement or document of any kind necessary or desirable to accomplish the business, purpose and objectives of the Trust, or required by any applicable federal, state or local law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any counterparts of this Declaration to be entered into pursuant to any agreements to which such Shareholder is a signatory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any duly adopted amendment to and/or restatement of this Declaration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all other filings with agencies of the Federal government, or any state or local government, or of any other jurisdiction, which any Trustee considers necessary or desirable to carry out the purposes of this Declaration, and the business of the Trust created hereunder.

The power of attorney granted by each Shareholder pursuant to this <u>Section 16.1</u> is limited to the items enumerated in this <u>Section 16.1</u>, is coupled with an interest, is irrevocable, shall survive the transfer of the whole or any part of a Shareholder's interest in the Trust (and shall be binding on the transferee thereof) and shall survive, and shall not be affected by, the subsequent death, disability, incapacity, incompetence, termination, bankruptcy, insolvency or dissolution of such Shareholder; *provided* that such power of attorney shall not apply to any action that would have a material adverse disproportionate effect on a Shareholder without the consent of that Shareholder.

Section 16.2 <u>Filing</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Declaration and any amendment or supplement hereto shall be filed in such places as may be required or as the Trustees deem appropriate. Each amendment or supplement shall be accompanied by a certificate signed and acknowledged by a Trustee or duly authorized officer stating that such action was duly taken in a manner provided herein, and shall, upon insertion in the Trust's minute book, be conclusive evidence of all amendments contained therein. A restated Declaration, containing the original Declaration and all amendments and supplements theretofore made, may be executed from time to time by a duly authorized officer and shall, upon insertion in the Trust's minute book, be conclusive evidence of all amendments and supplements contained therein and may thereafter be referred to in lieu of the original Declaration and the various amendments and supplements thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustees hereby ratify the previous filing of the Certificate of Trust with the Office of the Secretary of State of the State of Delaware on April 24, 2025 in accordance with the Delaware Statutory Trust Act.

Section 16.3 <u>Governing Law</u>. The trust set forth in this instrument is made in the State of Delaware, and the Trust and this Declaration, and the rights and obligations of the Trustees and Shareholders hereunder, are to be governed by and construed and administered according to the Delaware Statutory Trust Act and the laws of said State; provided, however, that there shall not be applicable to the Trust, the Trustees or this Declaration (a) the provisions of Sections 3540 and 3561 of Title 12 of the Delaware Code or (b) any provisions of the laws (statutory or common) of the State of Delaware (other than the Delaware Statutory Trust Act) pertaining to trusts which, in a manner inconsistent with the express terms of this Declaration of Trust or Bylaws, relate to or regulate: (i) the filing with any court or governmental body or agency of trustee accounts or schedules of trustee fees and charges, (ii) affirmative requirements to post bonds for trustees, officers, agents or employees of a trust, (iii) the necessity for obtaining court or other governmental approval concerning the acquisition, holding or disposition of real or personal property, (iv) fees or other sums payable to trustees, officers, agents or employees of a trust, (v) the allocation of receipts and expenditures to income or principal, (vi) restrictions or limitations on the permissible nature, amount or concentration of trust investments or requirements relating to the titling, storage or other manner of holding of or investing trust assets, or (vii) the establishment of fiduciary or other standards or responsibilities or limitations on the acts or powers of trustees, which are inconsistent with the limitations or liabilities or authorities and powers of the Trustees set forth or referenced in this Declaration. The Trust shall be of the type commonly called a "statutory trust", and without limiting the provisions hereof, the Trust may exercise all powers which are ordinarily exercised by such a trust under Delaware law. The Trust specifically reserves the right to exercise any of the powers or privileges afforded to trusts or actions that may be engaged in by trusts under the Delaware Statutory Trust Act, and the absence of a specific reference herein to any such power, privilege or action shall not imply that the Trust may not exercise such power or privilege or take such actions.

Section 16.4 <u>Exclusive Delaware Jurisdiction</u>. Each Trustee, each officer and, except as otherwise agreed in writing by the Trust, the Advisor and/or affiliates of the Advisor, each Person legally or beneficially owning a Share or an interest in a Share of the Trust (whether through a broker, dealer, bank, trust company or clearing corporation or an agent of any of the foregoing or otherwise), to the fullest extent permitted by law, including Section 3804(e) of the Delaware Statutory Trust Act, (a) irrevocably agrees that any claims, suits, actions or proceedings asserting

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a claim governed by the internal affairs (or similar) doctrine or arising out of or relating in any way to the Trust, the Delaware Statutory Trust Act, this Declaration or the Bylaws (including, without limitation, any claims, suits, actions or proceedings to interpret, apply or enforce (i) the provisions of this Declaration or the Bylaws, or (ii) the duties (including fiduciary duties), obligations or liabilities of the Trust to the Shareholders or the Trustees, or of officers or the Trustees to the Trust, to the Shareholders or each other, or (iii) the rights or powers of, or restrictions on, the Trust, the officers, the Trustees or the Shareholders, or (iv) any provision of the Delaware Statutory Trust Act or other laws of the State of Delaware pertaining to trusts made applicable to the Trust pursuant to Section 3809 of the Delaware Statutory Trust Act, or (v) any other instrument, document, agreement or certificate contemplated by any provision of the Delaware Statutory Trust Act, the Declaration or the Bylaws relating in any way to the Trust (regardless, in each case, of whether such claims, suits, actions or proceedings (A) sound in contract, tort, fraud or otherwise, (B) are based on common law, statutory, equitable, legal or other grounds, or (C) are derivative or direct claims)), shall be exclusively brought in the Court of Chancery of the State of Delaware or, if such court does not have subject matter jurisdiction thereof, any other court in the State of Delaware with subject matter jurisdiction; provided, however, that the Federal District Courts of the United States of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the 1940 Act, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, (b) irrevocably submits to the exclusive jurisdiction of such courts in connection with any such claim, suit, action or proceeding, (c) irrevocably agrees not to, and waives any right to, assert in any such claim, suit, action or proceeding that (i) it is not personally subject to the jurisdiction of such courts or any other court to which proceedings in such courts may be appealed, (ii) such claim, suit, action or proceeding is brought in an inconvenient forum, or (iii) the venue of such claim, suit, action or proceeding is improper, (d) consents to process being served in any such claim, suit, action or proceeding by mailing, certified mail, return receipt requested, a copy thereof to such party at the address in effect for notices hereunder, and agrees that such service shall constitute good and sufficient service of process and notice thereof; provided, nothing in clause (d) of this Section 16.4 shall affect or limit any right to serve process in any other manner permitted by law, and (e) irrevocably waives any and all right to trial by jury in any such claim, suit, action or proceeding.

Section 16.5 <u>Other Agreements</u>. Consistent with applicable law (including the 1940 Act), the Trust, the Advisor and/or affiliates of the Advisor may negotiate agreements ("Side Letters") with certain Shareholders that will result in different investment terms than the terms applicable to other Shareholders and that may have the effect of establishing rights under, or altering or supplementing the terms of, this Declaration or disclosure contained in any offering document of the Shares. As a result of such Side Letters, certain Shareholders may receive additional benefits which other Shareholders will not receive. Unless agreed otherwise in the Side Letter, in general, the Trust, the Advisor and affiliates of the Advisor will not be required to notify any or all of the other Shareholders of any such Side Letters or any of the rights and/or terms or provisions thereof, nor will the Trust, the Advisor or affiliates of the Advisor be required to offer such additional and/or different rights and/or terms to any or all of the other Shareholders. The Trust, the Advisor and/or affiliates of the Advisor may enter into such Side Letters with any Shareholder as each may determine in its sole discretion at any time. The other Shareholders will have no recourse against the Trust, the Trustees, the Advisor and/or any of their affiliates in the event certain investors receive additional and/or different rights and/or terms as a result of Side Letters. Any such

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exceptions or departures contained in any Side Letter with a Shareholder shall govern with respect to such Shareholder notwithstanding the provisions of this Declaration (including with respect to amendments to this Declaration) or any applicable subscription agreements. For the avoidance of doubt, no contractual arrangement established between a Shareholder and the Advisor or one of its affiliates pursuant to a broader strategic relationship between such Shareholder and the Advisor or one of its affiliates shall be considered a "Side Letter".

Section 16.6 <u>Counterparts</u>. This Declaration may be simultaneously executed in several counterparts, each of which shall be deemed to be an original, and such counterparts, together, shall constitute one and the same instrument, which shall be sufficiently evidenced by any such original counterpart.

Section 16.7 <u>Reliance by Third Parties</u>. Any certificate executed by an individual who, according to the records of the Trust, or of any recording office in which this Declaration may be recorded, appears to be a Trustee hereunder, certifying to: (a) the number or identity of Trustees or Shareholders, (b) the name of the Trust, (c) the due authorization of the execution of any instrument or writing, (d) the form of any vote passed at a meeting of Trustees or Shareholders, (e) the fact that the number of Trustees or Shareholders present at any meeting or executing any written instrument satisfies the requirements of this Declaration, (f) the form of any Bylaws adopted by or the identity of any officers elected by the Trustees, or (g) the existence of any fact or facts which in any manner relate to the affairs of the Trust, shall be conclusive evidence as to the matters so certified in favor of any person dealing with the Trustees and their successors.

Section 16.8 <u>Provisions in Conflict with Law or Regulation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The provisions of this Declaration are severable, and if the Trustees shall determine, with the advice of counsel, that any of such provision is in conflict with the 1940 Act, the regulated investment company provisions of the Internal Revenue Code or with other applicable laws and regulations, the conflicting provision shall be deemed never to have constituted a part of this Declaration; provided, however, that such determination shall not affect any of the remaining provisions of this Declaration or render invalid or improper any action taken or omitted prior to such determination.

If any provision of this Declaration shall be held invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall attach only to such provision in such jurisdiction and shall not in any manner affect such provision in any other jurisdiction or any other provision of this Declaration in any jurisdiction.

Section 16.9 <u>Waiver of Trial by Jury</u>. EACH OF THE PARTIES HERETO HEREBY WAIVES THE RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS DECLARATION OF TRUST.

Section 16.10 <u>Entire Agreement</u>. This Declaration and the exhibits hereto set forth the entire agreement and understanding of the parties related to this transaction and supersedes all prior agreements and understandings, oral or written.

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[*REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE IMMEDIATELY FOLLOWS*.]

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IN WITNESS WHEREOF, the undersigned have caused this Declaration to be executed as of the day and year first above written.

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| |
|:---|
| &nbsp;&nbsp; <br>/s/ Arthur H. Penn |
| &nbsp;&nbsp;Arthur H. Penn |
| &nbsp;&nbsp; <br>/s/ Adam K. Bernstein  |
| &nbsp;&nbsp;Adam K. Bernstein |
| &nbsp;&nbsp; <br>/s/ José A. Briones, Jr. |
| &nbsp;&nbsp;José A. Briones, Jr. |
| &nbsp;&nbsp; <br>/s/ Marshall Brozost |
| &nbsp;&nbsp;Marshall Brozost |
| &nbsp;&nbsp; <br>/s/ Jeffrey Flug |
| &nbsp;&nbsp;Jeffrey Flug |
| &nbsp;&nbsp; <br>/s/ Samuel L. Katz |
| &nbsp;&nbsp;Samuel L. Katz |

---

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## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION PURSUANT TO SECTION 302**

**CHIEF EXECUTIVE OFFICER CERTIFICATION**

I, Arthur H. Penn, Chief Executive Officer of PennantPark Private Income Fund, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Report on Form 10-Q of PennantPark Private Income Fund;

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

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

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

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

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

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

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

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

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

Dated: February 13, 2026

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| | |
|:---|:---|
| /s/ Arthur H. Penn | /s/ Arthur H. Penn |
| Name: | Arthur H. Penn |
| Title: | Chief Executive Officer |

---

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## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION PURSUANT TO SECTION 302**

**CHIEF FINANCIAL OFFICER CERTIFICATION**

I, Richard T. Allorto, Jr., Chief Financial Officer of PennantPark Private Income Fund, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Report on Form 10-Q of PennantPark Private Income Fund;

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

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

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

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

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

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

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

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

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

Dated: February 13, 2026

---

| | |
|:---|:---|
| /s/ Richard T. Allorto, Jr. | /s/ Richard T. Allorto, Jr. |
| Name: | Richard T. Allorto, Jr. |
| Title: | Chief Financial Officer |

---

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## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER** 

**PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)**

In connection with this Report on Form 10-Q for the three months ended December 31, 2025 (the "Report") of PennantPark Private Income Fund (the "Registrant"), as filed with the Securities and Exchange Commission on the date hereof, I, Arthur H. Penn, Chief Executive Officer of the Registrant, hereby certify, to the best of my knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| /s/ Arthur H. Penn | /s/ Arthur H. Penn |
| Name: | Arthur H. Penn |
| Title: | Chief Executive Officer |
| Date: | February 13, 2026 |

---

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## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)**

In connection with this Report on Form 10-Q for the three months ended December 31, 2025 (the "Report") of PennantPark Private Income Fund (the "Registrant"), as filed with the Securities and Exchange Commission on the date hereof, I, Richard T. Allorto, Jr., Chief Financial Officer of the Registrant, hereby certify, to the best of my knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| /s/ Richard T. Allorto, Jr. | /s/ Richard T. Allorto, Jr. |
| Name: | Richard T. Allorto, Jr. |
| Title: | Chief Financial Officer |
| Date: | February 13, 2026 |

---

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## Exhibit 99.1

<u>EXHIBIT 99.1</u>

**<u>PENNANTPARK PRIVATE INCOME FUND</u>**

**<u>PRIVACY POLICY</u>** 

To PennantPark Private Income Fund Investors:

We take precautions to maintain the privacy of personal information concerning our investors. These precautions include the adoption of certain procedures designed to maintain and secure your nonpublic personal information from inappropriate disclosure to unaffiliated third parties. We are sending this notice in accordance with applicable federal regulations. This notice applies to investors in PennantPark Private Income Fund (the "Company").

***What kind of personal information do we have about you and where did we get it?***

We collect nonpublic personal information about you from the following sources:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Information we may receive from you in subscription agreements or other related documents or forms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Information about your transactions with our affiliates and us.

***How do we protect your personal information?***

We do not disclose any nonpublic personal information about our investors or former investors to anyone, except as permitted by law.

We restrict access to nonpublic personal information about you to those employees and agents of PennantPark Private Income Fund Advisers LLC, its affiliates and unaffiliated third party service providers (which may include a custodian, transfer agent or printer) who need to know that information in order to provide services to you or to the Company. In that regard, we note that we maintain physical, electronic, and procedural safeguards that comply with federal standards to safeguard your nonpublic personal information and which we believe is adequate to prevent unauthorized disclosure of such information.

***What do we do with personal information about our former investors?***

If an investor decides to no longer do business with us, we will continue to follow this privacy policy with respect to the information we have in our possession about such investor and his/her account.

If you have any questions concerning our privacy policies, please contact our Chief Financial Officer, Richard T. Allorto, Jr., at (212) 905-1001.

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