# EDGAR Filing Document

**Accession Number:** 0001834543
**File Stem:** 0000950170-23-005646
**Filing Date:** 2023-3
**Character Count:** 589717
**Document Hash:** d00b06f2ab7c572fc1be8f2a264f8060
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-005646.hdr.sgml**: 20230302

**ACCESSION NUMBER**: 0000950170-23-005646

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230302

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BlackRock Direct Lending Corp.
- **CENTRAL INDEX KEY:** 0001834543
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56231
- **FILM NUMBER:** 23695805

**BUSINESS ADDRESS:**
- **STREET 1:** 2951 28TH STREET, SUITE 1000
- **CITY:** SANTA MONICA
- **STATE:** CA
- **ZIP:** 90405
- **BUSINESS PHONE:** (310) 566-1094

**MAIL ADDRESS:**
- **STREET 1:** 2951 28TH STREET, SUITE 1000
- **CITY:** SANTA MONICA
- **STATE:** CA
- **ZIP:** 90405

?xml version="1.0" encoding="ASCII"? 10-K

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

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**FORM** 10-K

☒ **Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

**For the Year Ended** December 31**,** 2022

☐ **Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Commission File Number:** 814-01378

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BLACKROCK DIRECT LENDING CORP.

(Exact Name of Registrant as Specified in Charter)

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| | |
|:---|:---|
| Delaware | 85-3439073 |
| (State or Other Jurisdiction of Incorporation) | (IRS Employer Identification No.) |
| **2951 28th Street,** Suite 1000 |  |
| Santa Monica**,** California | 90405 |
| (Address of Principal Executive Offices) | (Zip Code) |

---

**(**310**)** 566-1094

(Registrant's telephone number, including area code)

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

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| | | |
|:---|:---|:---|
| None | **Not applicable** | Not applicable |
| (Title of each class) | (Trading Symbol(s)) | (Name of each exchange where registered) |

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Securities registered pursuant to Section 12(g) of the Act: **None**

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

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

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

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):

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

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a 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 ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. Yes ☐ No ☒

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b). Yes ☐ No ☒

As of December 31, 2022, there was no established public market for the Registrant's shares of common stock.

The number of the Registrant's shares of common stock outstanding on March 1, 2023 was 17,459,576.

Documents Incorporated by Reference: Portions of the Registrant's Proxy Statement relating to the Registrant's 2022 Annual Meeting of Stockholders to be filed not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference into Part III of this Report.

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**BLACKROCK DIRECT LENDING CORP.**

**FORM 10-K**

**FOR THE YEAR ENDED DECEMBER 31, 2022**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| **PART I** | **PART I** | **PART I** |
| Item 1. | [<u>Business</u>](#item_1_business) | 7 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors_1) | 32 |
| Item 1B. | [<u>Unresolved Staff Comments</u>](#item_1b_unresolved_staff_comments) | 66 |
| Item 2. | [<u>Properties</u>](#item_2_properties) | 67 |
| Item 3. | [<u>Legal Proceedings</u>](#item_3_legal_proceedings) | 67 |
| Item 4. | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures_1) | 67 |
| **PART II** | **PART II** | **PART II** |
| Item 5. | [<u>Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</u>](#item_5_market_for_registrants_common_equ) | 67 |
| Item 6. | [<u>\[Reserved\]</u>](#item_6_reserved) | 69 |
| Item 7. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_7_managements_discussion_analysis_f) | 70 |
| Item 7A. | [<u>Quantitative and Qualitative Disclosures about Market Risk</u>](#item_7a_quantitative_qualitative_disclos) | 80 |
| Item 8. | [<u>Financial Statements and Supplementary Data</u>](#item_8_financial_statements_supplementar) | 81 |
| Item 9. | [<u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u>](#item_9_changes_in_disagreements_with_acc) | 113 |
| Item 9A. | [<u>Controls and Procedures</u>](#item_9a_controls_procedures) | 113 |
| Item 9B. | [<u>Other Information</u>](#item_9b_or_information) | 113 |
| Item 9C. | [<u>Disclosure Regarding Foreign Jurisdictions that Prevent Inspections</u>](#item_9c_foreign_jurisdictions) | 113 |
| **PART III** | **PART III** | **PART III** |
| Item 10. | [<u>Directors, Executive Officers and Corporate Governance</u>](#item_10_directors_executive_ficers_corpo) | 114 |
| Item 11. | [<u>Executive Compensation</u>](#item_11_executive_compensation) | 114 |
| Item 12. | [<u>Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</u>](#item_12_security_ownership_certain_benef) | 114 |
| Item 13. | [<u>Certain Relationships and Related Transactions, and Director Independence</u>](#item_13_certain_relationships_related_tr) | 114 |
| Item 14. | [<u>Principal Accountant Fees and Services</u>](#item_14_principal_accountant_fees_servic) | 114 |
| **PART IV** | **PART IV** | **PART IV** |
| Item 15 | [<u>Exhibits and Financial Statement Schedules</u>](#item_15_exhibits_financial_statement_sch) | 115 |
|  | [<u>Signatures</u>](#signatures_1) | 116 |

---

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**Part I**

In this annual report in Form 10-K, except as otherwise indicated, the terms:

"Company," "we," "us" and "our" refer to BlackRock Direct Lending Corp., a Delaware corporation;

The "Advisor" refers to BlackRock Capital Investment Advisors, LLC, a Delaware limited liability company and the investment manager;

"Administrator" refers to BlackRock Financial Management, Inc, a Delaware corporation, an affiliate of the Advisor and administrator of the Company.

**Summary of Risk Factors**

The risk factors described below are a summary of the principal risk factors associated with an investment in us. These are not the only risks we face. You should carefully consider these risk factors, together with the risk factors set forth in Item 1A of this Annual Report on Form 10-K and the other reports and documents filed by us with the SEC.

**Risks Related to Our Business**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Market disruptions and other geopolitical or macroeconomic events could create market volatility that negatively impacts our business, financial condition and earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Economic recessions or downturns could impair our portfolio companies and harm our operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are subject to risks related to inflation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Capital markets may experience periods of disruption and instability. Such market conditions may materially and adversely affect debt and equity capital markets in the U.S. and abroad, which may have a negative impact on our business and operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Price declines and illiquidity in the corporate debt markets have adversely affected, and may in the future adversely affect, the fair value of our portfolio investments, reducing our net asset value through increased net unrealized depreciation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in legal, tax and regulatory regimes could negatively impact our business, financial condition and earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes to U.S. tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Uncertainty regarding the impact of the United Kingdom's departure from the European Union could negatively impact our business, financial condition and earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Rising interest rates or changes in interest rates may adversely affect the value of our portfolio investments which could have an adverse effect on our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes relating to the London Interbank Offer Rate ("LIBOR") calculation process, the phase-out of LIBOR and the use of replacement rates for LIBOR may adversely affect the value of our portfolio securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may not replicate the historical performance of other investment companies and funds with which our investment professionals have been affiliated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are not managed by BlackRock, but rather one of its subsidiaries and may not replicate the success of that entity or BlackRock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our business model depends upon the development and maintenance of strong referral relationships with other asset managers and investment banking firms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Advisor's liability is limited under the investment management agreement, and we are required to indemnify the Advisor against certain liabilities, which may lead the Advisor to act in a riskier manner on our behalf than it would when acting for its own account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may suffer credit losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our use of borrowed funds to make investments exposes us to risks typically associated with leverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are subject to certain risks from leverage under our credit agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The disposition of our investments may result in contingent liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The lack of liquidity in our investments may adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A substantial portion of our portfolio investments are recorded at fair value as determined using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors, and, as a result, there may be uncertainty regarding the value of our portfolio investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our use of borrowed funds to make investments exposes us to risks typically associated with leverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A portion of our distributions to stockholders may include a return of stockholder capital.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•To the extent "original issue discount", or OID and payment-in-kind ("PIK") interest constitute a portion of our income, we will be exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash representing such income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Because we are required to distribute substantially all of our net investment income and net realized capital gains to our stockholders, we will continue to need additional capital to finance our growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Any unrealized losses we experience on our investment portfolio may be an indication of future realized losses, which could reduce our income available for distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our Advisor and its affiliates and employees may have certain conflicts of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our incentive compensation may induce our Advisor to make certain investments, including speculative investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may be obligated to pay the Advisor incentive compensation payments in excess of the amounts we would have paid if such compensation was subject to clawback arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our Advisor's liability is limited under the investment management agreement, and we are required to indemnify our Advisor against certain liabilities, which may lead our Advisor to act in a riskier manner on our behalf than it would when acting for its own account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are dependent upon senior management personnel of the Advisor for our future success, and if the Advisor is unable to retain qualified personnel or if the Advisor loses any member of its senior management team, our ability to achieve our investment objective could be significantly harmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Advisor can resign on 60 days' notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may in the future determine to fund a portion of our investments by issuing preferred stock, which would magnify the potential gains or losses and the risks of investing in us in the same manner as our borrowings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may experience fluctuations in our periodic operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If we fail to maintain our status as a business development company ("BDC"), our business and operating flexibility could be significantly reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Because we intend to distribute substantially all of our income to our stockholders to maintain our status as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986 (the "Code"), we will continue to need additional capital to finance growth. If additional funds are unavailable or not available on favorable terms, our ability to grow will be impaired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The highly competitive market in which we operate may limit our investment opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our Board of Directors may change our investment objective, operating policies and strategies without prior notice or stockholder approval, the effect of which may be adverse.

**Risks related to our investments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our investments are risky and highly speculative, and we could lose all or part of our investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A trading market or market value of our debt securities may fluctuate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may expose ourselves to risks if we engage in hedging transactions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are subject to credit risk related to investments in our portfolio companies and with our financial institutions and counterparties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Because our investments are generally not in publicly traded securities, there will be uncertainty regarding the value of our investments, which could adversely affect the determination of our net asset value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We and the Advisor may be a party to legal proceedings in connection with our investments in our portfolio companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may not be in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•There may be circumstances in which our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our portfolio companies may be highly leveraged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our portfolio companies may prepay loans, which prepayment may reduce stated yields in the future if capital returned cannot be invested in transactions with equal or greater expected yields.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Concentration of our assets in an issuer, industry or sector may present more risks than if we were more broadly diversified over numerous issuers, industries and sectors of the economy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our investments in the financial services sector are subject to various risks including volatility and extensive government regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our investments in the software, internet & catalog retail, and IT services sector are subject to various risks, including intellectual property infringement issues and rapid technological changes, which may adversely affect our performance. Each industry contains certain industry related credit risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The effect of global climate change may impact the operations of our portfolio companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may invest in "covenant-lite" loans, which could have limited investor protections.

**Risks related to our operations as a BDC**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•While our ability to enter into transactions with our affiliates is restricted under the Investment Company Act of 1940 (the "1940 Act"), we have received an exemptive order from the SEC permitting certain affiliated investments subject to certain conditions. As a result, the Advisor may face conflicts of interests and investments made pursuant to the exemptive order conditions could in certain circumstances adversely affect the price paid or received by us or the availability or size of the position purchased or sold by us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Regulations governing our operation as a BDC may limit our ability to, and the way in which we raise additional capital, which could have a material adverse impact on our liquidity, financial condition and results of operations and may hinder the Advisor's ability to take advantage of attractive investment opportunities and to achieve our investment objective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in the laws or regulations governing our business or the business of our portfolio companies, or changes in the interpretations thereof or newly enacted legislation and regulations, and any failure by us or our portfolio companies to comply with these laws or regulations, could have a material adverse effect on our business, results of operations or financial condition of us or our portfolio companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If we do not invest a sufficient portion of our assets in qualifying assets, we could be precluded from investing in certain assets or could be required to dispose of certain assets, which could have a material adverse effect on our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We will be subject to corporate-level U.S. federal income tax on all of our income if we are unable to qualify as a RIC under the Code, which could have a material adverse effect on our financial performance.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•There is a risk that you may not receive distributions or that our distributions may not grow over time and a portion of our distributions may be a return of capital.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, stockholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may experience cyber-security incidents and are subject to cyber-security risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The failure in cyber-security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our common stock and our ability to pay dividends.

**Risks Related to Our Common Stock and Other Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Shares of our common stock are not insured or guaranteed by any person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Shares of our common stock are subject to restrictions on transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We cannot assure you that a trading market for our common stock will develop or be maintained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Stockholders will not have any direct interests in our investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A stockholder default could have adverse consequences on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Stockholders may receive confidential information.

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**Item 1. Business**

**BlackRock Direct Lending Corp.**

The Company is an externally managed, non-diversified closed-end management investment company that has elected to be regulated as a BDC under the Investment Company Act of 1940, as amended (the "1940 Act"). The Company's investment objective is to target high risk-adjusted returns produced primarily from current income generated by investing primarily in senior secured corporate debt instruments. The Company primarily targets investments in companies headquartered in North America but will have the ability to invest in compelling opportunities in other jurisdictions, subject to regulatory limitations and other investment restrictions.

The Company has elected to be treated as a regulated investment company ("RIC") for U.S. federal income tax purposes. As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements.

To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements and timely distribute to our stockholders generally at least 90% of our investment company taxable income, as defined by the Internal Revenue Code of 1986, as amended (the "Code"), for each year. Pursuant to this election, we generally will not have to pay corporate level taxes on any income that we distribute to our stockholders provided that we satisfy those requirements.

The Company was formed in October 2020. The Company has offered and may continue to offer and sell shares of common stock in private placement transactions pursuant to certain exemptions of the Securities Act, the laws of the states and jurisdictions where any offering is made. The Company expects to enter into separate "subscription agreements" with investors, pursuant to which investors make commitments to purchase shares of common stock (referred to herein as "Capital Commitments"). Investors are required to make capital contributions to purchase shares of common stock each time the Company delivers a capital call notice, in an aggregate amount not to exceed each investor's respective remaining Capital Commitment. Until the Final Closing Date (as defined herein), the Company may accept additional Capital Commitments from time to time from new investors as well as existing investors that wish to increase their commitment in the Company.

The Company commenced operations on November 30, 2020.

**Investment Strategy**

The Company's investment activities are managed by the Advisor, a subsidiary of BlackRock, Inc. (together with its subsidiaries, including but not limited to the Advisor, "BlackRock" or the "Firm"). BlackRock believes that the Advisor's deep and experienced investment team, organized across 19 industry-focused verticals, is among the most tenured in the direct lending market, having invested in the strategy across multiple market cycles for more than 20 years. This depth of experience enables the team to not only identify more complex, unique and less competitive investments, but also to structure customized downside protection and better target outsized risk-adjusted returns. The Advisor utilizes a broad, multi-channel deal origination network across both primary and secondary market sources.

The Company benefits from BlackRock's successful strategy of investing in privately-originated, performing senior secured debt primarily in North America-based companies with target enterprise values between $100 million and $1.5 billion. The Company generally invests in privately-originated, performing senior secured debt of eligible portfolio companies (as described below under "Qualifying Assets"), subject to the Company's investment objective and strategies. Performing debt is debt that at the time of investment is not defaulted or, in the view of the Advisor, distressed. The Company holds positions in first lien, second lien and unitranche debt, with a preference for floating-rate debt, which the Advisor believes provides flexibility to adapt to changing market conditions. The Company may invest in securities of any maturity and credit quality.

The Company benefits from BlackRock's broad and established sourcing network to seek attractive investment opportunities across all market environments. BlackRock is one of the largest corporate lenders in the world and a long-tenured participant in the private debt markets. As such, it has diversified sourcing channels and maintains an active dialogue with industry and sector contacts, banks, brokers, sponsors, secondary desks, client relationships, other credit-focused Advisors and its well-established network of industry experts and executive-level operating professionals – all of which help to produce attractive deal flow. The Company pursues primary loan originations as its core strategy with capacity for secondary market accumulations when appropriate. A long-established history of investing in both of these segments affords BlackRock the flexibility to pursue what it views as superior risk-adjusted returns in a variety of market conditions. While the Advisor invests the majority of the Company's capital in primary market deal flow, during periods of broader capital markets volatility, the Advisor may focus attention on secondary market accumulations of undervalued loans offered at what it perceives as attractive discounts relative to the underlying borrower credit fundamentals. Similarly, when investment opportunities in the secondary market become less attractive, the Advisor expects to focus greater attention on primary market originated

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financings. BlackRock has found that the ability to evaluate and execute both primary and secondary middle-market deal flow is a significant competitive advantage. Furthermore, the Advisor is supported by the BlackRock Capital Markets group, a dedicated capital markets team responsible for sourcing private and illiquid investment opportunities across the BlackRock Alternatives platform. The BlackRock Capital Markets group provides global, comprehensive sourcing coverage by geography, asset class and transaction type and further supplements the Advisor's deal sourcing by maintaining close relationships across multiple sourcing channels.

BlackRock's direct lending strategy provides debt financing to meet the distinct and underserved needs of primarily North American middle-market companies. The Advisor generally targets for the Company what it views as healthy businesses that are seeking capital for various objectives, including but not limited to, growth, acquisitions, refinancings/recapitalizations, expansion stage venture lending and LBO activity. BlackRock actively seeks to uncover what it believes are overlooked, asset-rich opportunities with a degree of complexity "outside-of the-box" for traditional senior debt providers. This complexity does not include an element of stress or distress, but may take the form of structural, situational, legal or regulatory concerns, or may result from an industry or sector that is out of favor. In addition, BlackRock is able to utilize its complementary stressed/distressed expertise to more effectively diligence and negotiate complex direct lending investments, manage downside protection and proactively recognize potential problem investments.

BlackRock has built a reputation as a value-added partner in complex or misunderstood opportunities, given its ability to diligence and underwrite such complexity. The Advisor believes its deep industry and credit experience distinguishes its reputation, allowing BlackRock to uncover opportunities that less-experienced managers are either not qualified to analyze, or are under-resourced to properly evaluate. BlackRock continues its longstanding practice of seeking to alter the risk/reward balance in favor of its clients by using a hands-on approach to seek to create superior risk-adjusted returns while protecting value in challenging situations when required.

**Competitive Strengths**

BlackRock believes that the following characteristics distinguish it from other firms and allow the Company to maximize the risk/reward ratio of a given investment opportunity.

**Proven Strategy**

BlackRock has successfully applied its direct lending strategy throughout its history to generate attractive investment opportunities in all phases of a market cycle. Since 1999, BlackRock has deployed more than $35.1 billion across approximately 683 companies in its direct lending strategy. BlackRock believes that the following elements of its direct lending strategy are designed to enable the Company to generate above-market yields:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.Identifying value where others do not, in complex or overlooked deals through unique, multi-channel sourcing. This may involve pursuing, among others, transactions that fit the following profile:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Unique and not widely understood industry dynamics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Transactional complexity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Time-sensitive capital need requiring depth of industry knowledge

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Prior performance disruption or operational/management challenges

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Management changes and/or regulatory changes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Structuring sophistication to accommodate specific collateral/assets for downside protection

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.Large, reputable and deeply experienced team with proven ability to respond to various market conditions quickly and effectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III.Dual direct lending and stressed/distressed (special situations) experience to structure better pricing and downside protection and be prepared for unexpected events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•BlackRock has an extensive history executing both direct lending and opportunistic credit strategies with deep experience in middle-market finance across a wide range of industries and market cycles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The majority of the Advisor's senior-level investment professionals have spent considerable time in specific industry sectors, and the Advisor has underwritten and managed investments within those areas for both performing and challenged credits for over 20 years.

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**Focus on the Middle-Market**

Since BlackRock's first direct lending loan in its first institutional fund was made in 2000, its direct lending strategy has focused primarily on North American middle-market companies with target enterprise values from $100 million to $1.5 billion. The Advisor focuses on this segment for the Company because it believes the middle-market supplies several advantages for execution of the Company's investment strategy, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.A larger pool of successful and financeable companies in the segment compared to the large capitalization market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Investment opportunities where the target often has limited or no access to the broader capital markets as an alternative source of capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III.More consistent flow of investment opportunities across market cycles. BlackRock believes this market segment offers greater opportunity for its direct lending strategy due to fewer competing sources of capital, less efficient capital markets and more consistent primary and secondary transaction flow.

**Direct Lending Investment Network and Superior Deal Sourcing Capability**

BlackRock's primary deal flow advantage is derived from its proprietary network established over a 20+ year history of providing direct lending capital to middle-market U.S. companies and its intensive industry research and relationship-based approach. BlackRock's investment professionals maintain established relationships among industry-focused bankers, restructuring professionals, bankruptcy and other attorneys, senior lenders, liquidators, high yield specialists, research analysts and major accounting firms. BlackRock's long history in direct investing provides what it believes is a broader and deeper network of contacts among fellow corporate board members, former colleagues from a range of high-quality firms, other financial and operating professionals, insurance companies, credit funds, private equity funds, hedge funds and other similar alternative investment funds, which assists in sourcing and negotiating transaction opportunities. Given both its extremely long tenure in the market as well as its position within the world's largest asset manager, BlackRock is often a first call for middle-market direct lending opportunities, and in particular, those that require a level of specialized knowledge or skill to underwrite and execute. The BlackRock Capital Markets team helps to harness the power of the global franchise in an effort to ensure that BlackRock sees the broadest range of deal opportunities across its investment business. Furthermore, the Firm's relationships with prior portfolio companies help facilitate positive word-of-mouth recommendations to others seeking BlackRock's expertise and capital.

Access to Operating Talent

The Advisor augments its aforementioned in-house talent with multi-year relationships with former senior executives with strong records of success in major companies across industries in which BlackRock invests. These executive relationships may be used for assistance with due diligence, board seats, sourcing, and in some cases, to fill certain portfolio company operating roles. Importantly, the vast majority of these experienced industry leaders are also investors in funds managed by BlackRock.

Integrity

BlackRock conducts business with the highest standards for integrity. Those standards are apparent in its transparency and openness with its clients, its conservative accounting and management principles, and its relationships with counterparties, rival and allied creditors, portfolio company management teams and external advisors. BlackRock recognizes the value its business integrity provides in attracting clients, employees and operating talent, sourcing and evaluating transactions, and in reorganization negotiations.

A Leader in Alternative Credit Investing

BlackRock is the world's largest publicly traded investment management firm, with approximately $8.6 trillion of assets under management as of December 31, 2022. BlackRock manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, real estate, cash management and alternative investment products. BlackRock serves clients in North and South America, Europe, Asia, Australia, Africa and the Middle East. Headquartered in New York, BlackRock maintains offices in over 38 countries, including 25 primary investment centers. BlackRock's institutional knowledge includes proprietary valuation techniques, market outlook, competitive evaluation and structuring and operational expertise. In addition, BlackRock provides risk management, investment system outsourcing and financial advisory services to a growing number of institutional investors. Through BlackRock Solutions®, BlackRock provides risk management and advisory services that combine capital markets expertise with internally-developed systems and technology.

For 35+ years, including through legacy entities, BlackRock has been creating and managing alternatives portfolios. BlackRock has continually grown investment capabilities in response to, and in anticipation of, client needs. This strategic commitment is reflected

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in the considerable human and technological resources it has developed in order to ensure the long-term success of its alternatives platform. BlackRock has also hired respected industry professionals to complement its homegrown talent. Today, BlackRock has over 1,000+ professionals dedicated solely to alternatives across 25+ global investment centers. BlackRock's strong governance and scale enable its investment teams to focus solely on investing and benefit from accessing more deals, research, and insight than they would as independent businesses. BlackRock's scale helps it deliver sourcing, performance, and solutions that aim to help clients achieve objectives.

The Advisor's leadership team comprises a subset of former Tennenbaum Capital Partners, LLC ("TCP") senior professionals and is supplemented by comparable senior professionals from BlackRock. TCP was a leading alternative Advisor founded in 1999 with a proven track record of investing in direct lending across multiple market cycles prior to entering into the below described transaction with BlackRock. In August 2018, BlackRock acquired TCP, expanding BlackRock's capabilities in the private credit sector. BlackRock believes that the Company benefits from blending TCP's experience in U.S. direct lending with BlackRock's resources, relationships and global platform. BlackRock is a differentiated Advisor in middle-market direct lending, primarily, for three reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.Since 2000, BlackRock has invested over $35.1 billion in approximately 683 portfolio companies. The Advisor has generated performance through a substantial volume of activity over many years and across multiple market cycles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.In its pursuit of high risk-adjusted return deal flow, BlackRock consciously employs a deal source channel agnostic approach. It originates deals directly from companies as a sole-lender or club lender, from banks and brokers and from a broad mix of both sponsored and non-sponsored sources. It also selectively sources assets in the secondary market at what the Advisor views as attractive non-distressed prices during periods of broad market volatility (when available at a modest discount from a performing company). BlackRock strenuously avoids concentrating its substantial deal origination activity on simply one or two deal source channels. Furthermore, the Advisor is supported by the BlackRock Capital Markets group, a dedicated capital markets team responsible for sourcing private and illiquid investment opportunities across the BlackRock Alternatives platform. The BlackRock Capital Markets group provides global, comprehensive sourcing coverage by geography, asset class and transaction type and further supplements the Advisor's deal sourcing by maintaining close relationships across multiple sourcing channels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III.BlackRock has managed complex credits across two complementary strategies for more than 20 years: direct lending and special situations. Both are middle-market credit-focused strategies. As part of its special situations strategy, BlackRock has been through more than 100 portfolio company bankruptcies and restructurings, often as a deliberate part of the investment thesis. Inevitably, across market cycles, direct lending at high risk-adjusted rates of return means an Advisor will encounter credit challenges and therefore difficult decisions and situational complexity. When this occurs, BlackRock has what it believes is a depth of experience that enables it to seek superior recovery outcomes as a result of its breadth of credit experience earned over many years across these two complementary strategies.

Value-Oriented Direct Lending Investment Strategy

The Company benefits from BlackRock's successful strategy of investing in privately-originated, performing senior secured debt primarily issued by North American middle-market companies. This strategy employs a value-oriented approach, with a preference for unique and often less-competitive deals that may have been overlooked due to industry, legal/regulatory or transactional complexity or prior individual company performance. BlackRock leverages its deep credit and industry experience in an effort to unlock value in these opportunities and ultimately provide strong risk-adjusted returns.

Compelling Middle-Market Opportunity

The Company invests in senior secured debt investments primarily in the North American middle market, which BlackRock defines as companies with enterprise values between $100 million and $1.5 billion. The targeted "sweet spot" tends to be companies with enterprise values from $100 million to $750 million. BlackRock believes this market segment provides attractive investment opportunities due to three key factors: (1) largest number of established companies in the U.S. market are in this segment; (2) fewer financing alternatives are available for these borrowers than for large capitalization companies; (3) long-term relationships and experience are required to source unique transaction flow in this market segment. In particular, BlackRock believes the direct lending strategy has developed into a core asset class that serves the needs of this segment of the U.S. economy. BlackRock has established itself as a leader in this segment over almost two decades with a reputation for reliability and creativity in structuring financing solutions.

At this time, there is a general recognition that the market has entered a period of heightened uncertainty and volatility as the full impact of COVID-19 (as defined below) continues to be assessed. BlackRock believes that the Company is well positioned to achieve success across a variety of potential macroeconomic scenarios. Market disruption such as the current pandemic often drive better pricing, lower leverage, superior documentation and less competition. In this context of market uncertainty, BlackRock continues to have a positive outlook for the direct lending asset class both in the short term as well as over the next 5-10 years across the U.S. Particularly

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in times of uncertainty, BlackRock believes it is important to focus on senior secured debt financing in less cyclical industries and in companies with revenue streams which are less affected by geopolitical events and/or the general economic cycle.

Deep and Experienced Team of Credit Specialists

BlackRock believes that the Advisor's investment team, which is organized across 19 industry verticals, is one of the longest-tenured teams in the middle-market lending asset class. The Advisor utilizes a centralized investment committee process to execute its direct lending strategy, which BlackRock believes facilitates knowledge-sharing and enhances the ability to provide financing solutions to its deal sources and also proactively manage at-risk investments. The industry-led execution is designed to allow BlackRock to apply years of acquired knowledge and relationships to its sourcing, underwriting and portfolio management of investment opportunities. In BlackRock's opinion, and demonstrated by the Advisor's extensive track record, this industry-led approach provides an advantage over competitors by bringing to bear insight that exceeds that of a generalist lender. BlackRock understands a potential borrower's business from an industry-insider perspective and feels it is better equipped to identify key diligence and structuring considerations early in the transaction evaluation. Borrowers appreciate and rely on the Advisor to deliver thoughtful initial feedback which accelerates the process to either a more detailed evaluation or a constructive decline. Additionally, this industry-led approach enhances BlackRock's underwriting diligence and credit agreement negotiation based on key experience with similar companies within the same sector or industry sub-sector. Finally, it helps to inform BlackRock's actions when challenges arise as part of portfolio monitoring and when strategic decisions are required. The Investment Committee (as defined below) plays an integral role designed to ensure that BlackRock combines its unique industry knowledge with a complementary stressed/distressed skill set possessed by the same team of professionals. BlackRock's unique and centralized residency of both performing and stressed/distressed credit proficiency is particularly valuable as the Advisor seeks to navigate the post-COVID-19 middle market landscape.

Market Opportunity

BlackRock believes that an attractive investment environment exists for middle market and privately-originated illiquid loans using the investment strategy and approach that BlackRock has successfully employed for over 20 years. Over that time, due to fundamental changes in the U.S. banking system and corporate debt market, lending to middle market companies in the U.S. has radically transformed.

BlackRock believes that the landscape for U.S. middle market private loans has undergone a secular shift which presents an investment opportunity for institutional investors, and that investment platforms offering superior reputation, flexibility and scale will continue to be well-positioned to serve this growing market. The supply-demand dynamics arising from this secular shift are further described below.

Since June 2000 when BlackRock made its first direct lending investment, the role of banks in middle-market lending has materially reduced. In order to comply with regulations, such as Basel III, the Dodd-Frank Act and certain provisions therein known as the "Volcker Rule", banks have reduced their balance sheets to de-risk their business activities. Banks simply cannot lend on the scale they once did to absorb the supply of middle market loans because it has become economically challenging for banks to hold middle market loans. BlackRock recognizes that stricter regulations and enforcement of leveraged lending guidelines has further reduced bank lending activities in the middle market versus earlier periods, and in particular, the period prior to the global financial crisis.

Simultaneously, middle market financing needs are high. BlackRock believes that institutional private capital will be needed to address a large volume of financing requirements over the next several years driven by refinancing needs as well as deployment of private equity cash reserves (often referred to as "dry powder").

BlackRock believes that the growth of small-to-medium sized businesses will be key to growth for all developed economies, and in particular, the United States. Middle market companies represent approximately one-third of U.S. private sector GDP and employ nearly 48 million people, providing approximately one-third of all U.S. jobs as of December 31, 2021, according to the National Center for the Middle Market. BlackRock anticipates that direct lending providers to the middle market will enable these businesses to access capital that is increasingly difficult for them to obtain from traditional bank sources yet is important for continued economic growth.

While BlackRock does expect a slowdown in M&A in the short-term as a result of the COVID-19 pandemic, in the medium-term, it expects to see an increase in transactions which cannot be executed in the public markets and also expects to see a resetting of pricing and structure, which will likely be favorable to private markets investors. The opportunity set in direct lending should continue to grow given that "alternative" lenders now comprise a meaningful percentage of the credit provided to both U.S. and non-U.S. companies. BlackRock does not anticipate this changing due to recent banking regulation and business model shifts, or as a result of broad market concerns regarding investment liquidity. These structural shifts in the market have created a more robust opportunity for alternative lenders such as BlackRock (and others).

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As institutional platforms emerge to fill the void left by banks, BlackRock has found that not all of these platforms are perceived as equally attractive by borrowers, who are seeking comprehensive capital solutions, execution certainty and a long-term relationship-driven approach from their financing providers. In particular, as the effects of the COVID-19 pandemic are more fully absorbed by the private markets, they will likely be unequally experienced across individual companies, industries, management teams and deal sources. BlackRock believes that this dynamic will tilt the balance in favor of reliable financing providers who can offer middle-market borrowers time-tested dependability, industry expertise, flexible debt solutions and a scalable platform.

The competitive dynamics in the middle-market have created a favorable environment for direct lenders with the relevant industry experience to appropriately structure loans for middle-market borrowers. Originating and underwriting such loans requires an established sourcing network and the ability to identify unique situations whereby higher yields may be combined with appropriate structural protections for the lender. For these reasons, BlackRock believes that the Company continues to be well-positioned to continue this historical practice of carefully selecting appropriate risk-adjusted return opportunities in the evolving middle-market. BlackRock's expertise in navigating situations that incorporate an element of industry-specific complexity and/or require speed of execution, as well as its strict focus on downside protection, allow BlackRock to continue to generate attractive risk-adjusted returns regardless of market cycle.

Investment Process

BlackRock's investment process is designed for superior execution based upon its strategic advantages: a deep bench of experienced credit professionals across both liquid and illiquid credit strategies, a strong brand name in middle-market direct lending and unique in-house skills in each stage of its investment process.

The investment process is structured around a group of senior industry-focused investment professionals organized into teams that typically follow an investment from origination through realization and supplemented by incremental origination resources designed to make certain the Firm is accessing all key sourcing channels. BlackRock believes that this consistent involvement of industry focused professionals with intimate knowledge of a company and its unique industry dynamics leads to better investment outcomes. The Advisor's investment professionals, particularly at the senior levels, also possess a broad range of transactional experience across both its direct lending and opportunistic credit strategies. The Advisor believes that this multi-strategy experience benefits direct lending in two key areas: (1) it informs its underwriting, and (2) it improves the Advisor's ability to source investment opportunities. The complementary experience in stressed/distressed (special situations) credit informs the Advisor's underwriting for direct lending portfolios, as substantial experience with companies across each industry vertical in challenging circumstances assists the team in better understanding relevant areas of diligence and critical documentation provisions that have been previously stress-tested with other comparable companies in each industry sector.

The ability to provide a capital solution to a wide range of middle market deal sources over more than 20 years and across the industries the Firm follows, both in good times and bad, also makes the BlackRock investment professionals consistently relevant to those deal sources as a valuable capital provider. When industry sectors are performing, BlackRock professionals are providing more direct lending capital, but when an industry experiences a downturn, BlackRock professionals remain relevant as an opportunistic credit capital provider. BlackRock believes that this active participation across its industry teams to all phases of an industry cycle encourages knowledge-sharing, active debate, critical examination of unique opportunities, more robust origination and establishes a deeper set of relationships with key deal sources that need a reliable partner.

BlackRock evaluates investment opportunities by following a rigorous and disciplined investment process that combines the characteristics highlighted below.

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Deal Sourcing

BlackRock's deal flow advantage comes from its proprietary network and research, earned over an exceptionally long and successful market tenure. The majority of investments in the Company are generated from primary market sources and also include opportunistic secondary purchases. The Advisor's investment professionals have long-term relationships with a wide range of deal sources including industry-focused bankers, restructuring professionals, bankruptcy attorneys, senior lenders, high yield bond specialists, trading desks (both regional and money center), research analysts, liquidators, accounting firms, fund management teams, board members of former portfolio companies, former colleagues at other high-quality investment firms and other operating professionals to facilitate deal flow. The Advisor also expects to continue to leverage the significant BlackRock organizational resources at its disposal by communicating with members of BlackRock's global credit platform, including investment-grade credit analysts, sub-investment grade credit analysts, real estate (both equity and debt) and private equity teams and with professionals in risk and quantitative analysis. Furthermore, the Advisor is supported by the BlackRock Capital Markets group, a dedicated capital markets team responsible for sourcing private and illiquid investment opportunities across the BlackRock Alternatives platform. The BlackRock Capital Markets group provides global, comprehensive sourcing coverage by geography, asset class and transaction type and further supplements the Advisor's deal sourcing by maintaining close relationships across multiple sourcing channels.

Given both its tenure in the direct lending market as well as its scope as one of the largest Advisors in the world, BlackRock is often the first call for new deal opportunities in its core middle-market segment. In addition, BlackRock has relationships with numerous other credit investors, including insurance companies, credit funds, multi-strategy private equity funds, hedge funds and other comparable alternative funds that invest in assets similar to those targeted by the Company.

In addition to drawing upon experience from its considerable resources, BlackRock regularly calls on both active and recently retired senior-level executives from relevant industries to assist with due diligence for potential investments. Historically, these relationships with retired senior executives have also been a valuable source of transactions and critical information. BlackRock's relationships with its portfolio companies across the entirety of its credit franchise also facilitate positive word-of-mouth recommendations to other companies seeking BlackRock's expertise and capital. The Firm's unsurpassed relationship network provides it with the ability to access investment opportunities that competitors may miss or, in competitive circumstances, allows it to engage at an earlier stage in the process.

Due Diligence

The foundation of BlackRock's investment process is intensive investment research and analysis by the Firm's experienced investment professionals. A majority of the Advisor's leadership team has worked together for more than 14 years at BlackRock including their predecessor firm TCP; collectively, they possess a level of direct lending investing experience that is difficult to replicate. In addition to the abundant internal relationships and resources available through BlackRock's global platform, its in-house knowledge is supplemented with industry experts with direct senior-level management experience in the sectors it targets. The process of rigorously and comprehensively analyzing issuers of securities or loans includes a quantitative and qualitative assessment of the company's business, an evaluation of its management, business strategy, industry trends, and an in-depth examination of the company's capital structure, financial results and projections. BlackRock's due diligence process includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•An analysis of the fundamental asset values and enterprise value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Review of key assets, core competencies, competitive advantages, historical and projected financial statements, capital structure, financial flexibility, debt amortization requirements, environmental, social and governance considerations, and tax, legal and regulatory contingencies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•An assessment of the outlook for the industry and general macroeconomic trends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Discussions with management, as well as other industry executives, including an assessment of management/board strengths and weaknesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Review of the issuer's credit or other related documents, including those governing the issuer such as charter, by-laws and key contracts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Analysis of portfolio risks from a top-down and bottom-up perspective.

Investment Committee and Decision-making

BlackRock's transaction evaluation is organized around a centralized investment committee that provides for a consistent, repeatable decision-making process. BlackRock's investment committee for the Company's portfolio (the "Investment Committee") includes all investment professionals of the Advisor and key senior-level constituents from other functional groups including BlackRock's Risk and Qualitative Analysis ("RQA") group. The "Voting Members" of the Investment Committee will be drawn from

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a pool of the Advisor's senior professionals. The Investment Committee is currently comprised of five permanent Voting Members and three rotating Voting Members (rotating Voting Members will vote during certain established time intervals). The Investment Committee generally meets weekly (or more frequently, if determined necessary) and all key professionals are invited and encouraged to attend. Transactions are brought before the Investment Committee and presented by the industry-led deal teams and accompanied by detailed investment memoranda distributed for review in advance of each meeting. Buy/sell recommendations are debated vigorously and all members of the Investment Committee are encouraged to contribute to the discussion. No Voting Member of the Investment Committee holds a veto and a simple majority vote of Voting Members of the Investment Committee is required for action.

Often, investment opportunities are discussed at multiple meetings as the deal team responds to input provided by the Investment Committee throughout the process. Additionally, the investment policy committee generally meets weekly to review new investment opportunities scheduled for broader-firm discussion. The investment policy committee's purpose is to screen each new opportunity to ensure efficient use of Firm resources and focus deal teams on what it views as the most appropriate potential transactions.

Portfolio Management

BlackRock closely monitors each investment, as it believes that careful and consistent monitoring of financial performance and market developments is critical to successful investment management. This monitoring is designed to enable BlackRock to respond in a timely and efficient manner to individual company, industry or broader market movements. In addition, BlackRock constructs its direct lending portfolios in a highly-diversified manner by both borrower and industry in an effort to mitigate the drag of any potential credit losses. Accordingly, BlackRock uses an established process that includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Weekly (sometimes daily) monitoring by industry-led deal team members that executed the initial purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Regular and repeated dialogue with investment constituents including company management, industry experts, co-investment partners (if applicable) and senior-level resources throughout the BlackRock platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Internal meetings, as needed, to highlight material investment developments or trends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A weekly review by the Investment Committee of activity related to existing portfolio investments that may require broader feedback and decision-making;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A quarterly portfolio review process that includes a more detailed discussion (with all key investment professionals invited to attend) of each portfolio company meeting certain minimum materiality thresholds to review performance and outlook relative to the original investment thesis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Attendance by industry-focused investment professionals at industry conferences and seminars, and regular meetings with comparable company management contacts.

Culture of Risk Management

BlackRock has a strong risk management orientation. The investment professionals use the Firm's independent RQA group to aid the day to day portfolio management activities.

RQA leads BlackRock's portfolio risk analytics by providing independent top-down and bottom-up oversight. RQA partners with BlackRock's investment professionals to help ensure that risks in the portfolio are consistent across each strategy, with the team's current investment themes, and with each client's formal risk constraints. Members of RQA have specialized knowledge of each type of portfolio that BlackRock manages. RQA seeks to identify and properly measure key risks for each portfolio type.

A private credit risk management team of 7+ specialized professionals engages throughout the investment process. Early involvement with the investment team facilitates identification of risks and effective, constructive challenge. Additionally, the RQA team has full access to the investment teams' diligence to provide an unbiased view from the same set of information. The private credit risk team is further supported by the broader RQA platform outlined below.

Realizations

The returns that BlackRock generates for the Company are primarily from interest income from cash-pay credit investments in the portfolio with the remainder generated by capital gains. In addition to regular payments of principal and interest on its credit investments, there are several means by which the Company monetizes investments, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Refinancing and/or repayment by the issuer/borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Change of control transaction involving the company leading to a refinancing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Exchanges of existing instruments for new securities that are subsequently sold; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Public offering of securities that create a liquidity event.

Considerations of Environmental, Social and Governance

While providing sustainable investment solutions is not the focus of the Company, BlackRock approaches sustainable investing by focusing on "Insights," "Integration" and "Stewardship," which are part of the investment process for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Insights: Developing the clearest possible picture of how ESG issues impact long term return: BlackRock begins from the view that, to be effective investors, the Firm must deeply understand the ways in which ESG issues do and do not affect long-term return. A growing body of investment research and market practice demonstrates that companies which effectively manage material sustainability risks and opportunities outperform their counterparts over time. Still, significant questions remain about causation, timeframe and the availability and consistency of sustainability-related data. BlackRock aims to contribute to evolving research and market practice to help address these questions.

BlackRock is leveraging the scale of its investment platform, proprietary technology and direct, private engagement with companies through its investment stewardship activities to create sophisticated approaches to measuring and assessing sustainability-related risks and opportunities. BlackRock's Sustainable Investing team analyzes sustainability-related data, examines questions about causation and performance, and generates insights for portfolios firm-wide. The Sustainable Investment team develops proprietary views on materiality of specific sustainability-related topics by leveraging external data as well as proprietary research, and delivers insights to clients via thematic research publications, custom analytics and advisory solutions and innovative product development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Integration: Integrating sustainability-related insights and data into BlackRock's investment processes: BlackRock provides its investment teams with data and insights to keep them well informed of sustainability considerations. By enhancing access to information on these risks and opportunities across its diverse platform, BlackRock improves the total mix of information it considers when making active investment decisions and ensures it accounts for long-term risks. BlackRock's Aladdin technology allows portfolio managers to efficiently access issuer-level ESG information during investment analysis and portfolio construction. Aladdin portfolio-level ESG and carbon metrics enable investment professionals to measure ESG risk and performance against benchmarks.

BlackRock has launched a firm-wide effort to deepen the integration of sustainability-related insights and data into investment processes globally. BlackRock is building tools that allow its portfolio managers to analyze relevant sustainability information alongside the traditional financial metrics they consider when making active investment decisions. As new data sources and sustainability-related insights are uncovered, this information will be further integrated into BlackRock's tools and processes. This effort will allow BlackRock to use sustainability information in the same way traditional alpha and risk signals are considered in BlackRock's alpha-seeking strategies – as another essential input to BlackRock's decision-making. BlackRock's investment stewardship efforts benefits from firm-wide data and insights on sustainability-related issues, and its investment teams benefit from the sustainability insights derived from BlackRock's stewardship activities – a powerful, positive feedback loop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Stewardship: Engaging companies on sustainability-related issues: BlackRock believes that companies with sound corporate governance practices, including how they manage the environmental and social aspects of their operations, better mitigate risk over the long term and offer better risk-adjusted returns. BlackRock engages with companies held in index and alpha-seeking portfolios alike to encourage them to adopt the robust business practices consistent with sustainable long-term performance.

BlackRock's investment stewardship efforts, including its direct engagement and voting activities, aim to ensure companies deliver long-term, sustainable growth and returns for clients. As a large investor, BlackRock is able – and feels a responsibility – to monitor the companies in which it invests and to engage with them constructively and privately where BlackRock believes that would help protect clients' interests. As a fiduciary investor, BlackRock evaluates how companies manage the material sustainability-related risks and opportunities within their businesses. Engagement helps build mutual understanding on any issues where BlackRock is concerned that a company's practices fall short of operational excellence. It also helps BlackRock assess a company's approach to governance in the context of its specific circumstances.

Engagement is not one conversation. BlackRock has ongoing private dialogue with companies to explain its views and how it evaluates their actions on relevant ESG issues over time. Where BlackRock has concerns that are not addressed by these conversations, the Firm stands ready to vote against proposals from management or the board. Last year, BlackRock's stewardship program engaged with about 1,500 companies to discuss their governance practices and the sustainability of their business model. BlackRock has committed to double the size of the investment stewardship team over the next three years, which will enable BlackRock to significantly increase its engagement activities and foster more effective engagement by building a framework for deeper, more frequent and more productive conversations.

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BlackRock currently manages a broad suite of investment solutions on behalf of its clients, in which sustainability themes are central to mitigating risk and enhancing long-term returns. Some of these products are also used by clients to align their financial investments with their values by removing exposure to specific investments, or by generating positive social outcomes alongside market rates of return. BlackRock offers products designed to provide sustainable investment solutions that empower clients to achieve their financial objectives. BlackRock products range from green bonds and renewable infrastructure to thematic strategies that allow clients to align their capital with the UN Sustainable Development Goals. BlackRock is the largest provider of sustainable ETFs, including the industry's largest low-carbon ETF; BlackRock manages one of the largest renewable power funds globally, and it is the first asset manager to offer portfolio-level impact reporting for a co-mingled green bond product. With deep expertise in alpha-seeking and index strategies, across both public equity and debt, private renewable power, commodities and real asset strategies, BlackRock is continuing to build scalable products and customized solutions across asset classes.

BlackRock clients increasingly look to BlackRock to not only deliver innovative sustainable investment products, but also to provide a total portfolio assessment of exposure to sustainability-related risks. By combining proprietary data and insights with the power of Aladdin, BlackRock can deliver world-class sustainability analytics, providing clients with an understanding of how sustainability issues affect the risk and long-term return of their investments. Once clients understand their exposure to sustainability issues, they can set targets to improve their portfolio's positioning. BlackRock offers a wide range of solutions that help its clients take a total-portfolio approach to sustainable investing.

**Investment Restrictions and Other Considerations**

In consideration of the desired investment parameters of certain prospective investors, the Company has adopted the following investment restrictions. In addition to applicable legal and regulatory restrictions, the Company will not make an investment commitment to any Prohibited Investment. A "Prohibited Investment" means any prospective investment: (a) whose core business (by reference to the investment and its subsidiaries on a consolidated basis) generates a majority of its gross revenues from any or all of the following: (i) gambling, (ii) brewery activities, the purchase, sale, manufacturing of alcohol, (iii) pork production, processing, (iv) tobacco, (v) the purchase, sale, manufacturing or marketing of weapons, artillery and ammunition to be used in an act of war or military conflict or (vi) pornography (provided that, for the avoidance of doubt, with respect to the foregoing clause (a), an investment's revenues shall not be determined by reference to the revenues of such investment's tenants, customers, restaurant or hotel operations and shall be determined solely by reference to the investment's revenues from its business operations) or (b) that derives the majority of its revenues (by reference to the investment and its subsidiaries on a consolidated basis) from, or has its Country of Domicile in, one or more Restricted Countries. For purposes of this paragraph, the "Restricted Countries" are Algeria, Cyprus, Djibouti, Egypt, Ethiopia, Iran, Iraq, Israel, Jordan, Lebanon, Libya, Malta, Morocco, Sudan, Syria, Tunisia, Turkey, and Yemen, and "Country of Domicile" means the country in which the prospective investment is headquartered. The majority revenue test will be measured based on the twelve-month period immediately prior to the time at which an investment commitment would otherwise be made by the Company to such prospective investment.

The investment restrictions outlined above will be measured immediately after giving effect to each investment. As a result of changes in the value of one investment relative to other investments in the portfolio, among other reasons, an investment (or group of investments) may exceed the limits set forth at any particular time and, in connection therewith, the Company will not be obligated, and may have limited ability to, reduce the Company's exposure to such investment(s). For the avoidance of doubt, to the extent the Company makes an investment commitment in an investment whose Country of Domicile was, at the time at which such investment commitment was made, not located in the Restricted Countries, and the principal headquarters is subsequently relocated to a Restricted Country, the Company will not be obligated to dispose of its investment.

The Company generally seeks to minimize the amount of U.S. federal income tax required to be withheld from distributions to its non-U.S. stockholders, subject to the Company's investment objective and provided that this intention shall not require the Company to forgo any investment opportunity or to structure any investments of the Company or conduct the business of the Company in any particular manner.

**Private Offering of Common Stock**

The Company has entered into separate subscription agreements with investors providing for the private placement of shares of common stock (the "Private Offering"). The subscription agreements set forth, among other things, the terms and conditions upon which the investors will purchase shares of common stock, the circumstances under which the Company may draw down capital from investors, certain covenants that all investors must agree to, and the remedies available to the Company in the event that an investor defaults on its obligation to make Capital Commitments. In addition, the subscription agreements include a questionnaire designed to ensure that all investors are either (i) "accredited investors," as defined in Rule 501 of Regulation D under the Securities Act, or (ii) in the case of shares sold outside the United States, persons that are not "U.S. persons" in accordance with Regulation S under the Securities Act.

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While the Company expects each subscription agreement to reflect the terms and conditions summarized in the following paragraphs, the Company reserves the right to enter into subscription agreements that contain terms and conditions not found in the subscription agreements entered into with other investors, subject to applicable law.

The Company first entered into subscription agreements with accredited investors on December 11, 2020 (the "Initial Closing Date").

Pursuant to subscription agreements investors make Capital Commitments to purchase shares of common stock. The subscription agreements provide that investors are required to fund capital contributions to purchase shares of common stock (also referred to herein as a "Drawdown Purchase"), each time the Company delivers a drawdown notice, which the Company will deliver at least ten calendar days prior to the date on which contributions will be due, provided that the initial Drawdown Purchase occurred on the Initial Closing Date. Drawdown Purchases are allocated among investors with unfunded Capital Commitments in amounts proportional to the Capital Commitment of each investor.

The offering price per share of common stock at the initial Drawdown Purchase was $10.00. Following the initial Drawdown Purchase, the Company will issue shares of common stock at a price based on net asset value per share as determined as of the end of the most recent fiscal quarter for which net asset value has been determined prior to the Drawdown Purchase date in accordance with the valuation policies adopted by the board of directors, subject to adjustment from the latest quarterly valuation date in accordance with the Company's valuation policies and subject to Section 23 of the 1940 Act (which generally prohibits the Company from issuing shares of common stock at a price below the then-current net asset value of the shares of common stock as determined within 48 hours, excluding Sundays and holidays, of such issuance) in an amount equal to the percentage of the Capital Commitments specified by the Company in the drawdown notice.

The Company may accept additional Capital Commitments to purchase shares of common stock at subsequent closings from existing and additional investors for up to 18 months after the Initial Closing Date (the "Final Closing Date"); provided that with approval of a majority of the then outstanding shares of common stock, the Company may extend the Final Closing Date for up to an additional six (6) months (i.e., the offering period may conclude 24 months after the Initial Closing Date).

All Drawdown Purchases will generally be made pro rata, in accordance with the remaining Capital Commitments of all investors, provided that (i) the Company may, in its discretion, call Drawdown Purchases on a non-pro rata basis to comply with ownership limitations under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and (ii) new investors participating in subsequent closings will make purchases of shares of common stock (each, a "Catch-Up Purchase") on one or more dates to be determined by the Company.

In order to more fairly allocate organizational and offering costs among all stockholders, the aggregate purchase price of the Catch-Up Purchases will be equal to an amount necessary to ensure that, upon payment of the aggregate purchase price, such investor will have contributed to the Company the same percentage of contributed capital relative to their capital commitment at previous closings. Catch-Up Purchases will be made at a per share price adjusted to appropriately reflect such investor's pro rata portion of the Company's initial organizational and offering.

**Investment Period**

The "Investment Period" began on the Initial Closing Date and will end three years after the Final Closing Date, subject to a 12-month extension of the Investment Period if requested by the Advisor and approved by a majority of the then outstanding shares of common stock. During the Investment Period, Capital Commitments may be called by the Company in any amount on not less than 10 calendar days' prior written notice to investors. To the extent that the Company has made distributions to stockholders representing a return of capital during the Investment Period, such amount may be re-called by the Company during the Investment Period at any time in any amount on not less than 10 calendar days' prior written notice.

Undistributed capital may be reinvested by the Company throughout the Investment Period. Following the expiration of the Investment Period, Capital Commitments may only be called to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)cover, or reserve, for actual or anticipated expenses and liabilities of the Company (including payment of the management (including the base fee or the incentive fee), operating expenses of the Company and indemnification or other obligations of the Company, whether contingent or otherwise), and to acquire the interest of a defaulting investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)complete investments that were approved by the Investment Committee prior to the expiration of the Investment Period or as to which a definitive agreement, letter of intent, memorandum of understanding or similar document (whether or not

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legally binding on the parties thereto) has been entered into prior to the expiration of the Investment Period (each, a "Pending Investment");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)satisfy liabilities and other obligations (including any remaining funding obligation) with respect to any existing investment, and any borrowings or guarantees of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)engage in hedging transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)exercise any equity rights held as of the end of the Investment Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)fund any additional investment (in addition to any included in (ii)) that the Advisor determines in its discretion is appropriate or necessary to preserve or protect the value of any existing investment (each, a "Follow-On Investment") in an amount equal to up to 15% of the aggregate Capital Commitments.

For the avoidance of doubt, any investment that is in the nature of a revolving credit facility or line of credit, delayed draw loan or similar financing arrangement will be treated as a Pending Investment and not a Follow-On Investment for purposes of the foregoing limitations.

In addition, following the expiration of the Investment Period, the Company may only make new investments described in clauses (ii), (iv), (v) and (vi) of the preceding paragraph, or in investments in investment-grade short-term securities ("Temporary Investments").

If, at any time during the Investment Period, any three of the permanent Voting Members of the Investment Committee cease to be Voting Members of the Investment Committee, the Advisor will replace each such Voting Member promptly, but in any event, within four (4) months of the third departure. Such third departure that results in fewer than four (4) permanent Voting Members of the Investment Committee remaining will constitute a "Key Personnel Event." If, at any time during the Investment Period, a Key Personnel Event occurs, then (a) the Advisor will provide prompt notice to the stockholders, not later than ten (10) business days thereafter, and (b) the Investment Period will be automatically suspended. The Investment Period will be reinstated upon the earlier to occur of (i) the existence of at least four (4) permanent Voting Members on the Investment Committee prior to the four (4) month anniversary of the Key Personnel Event and (ii) the approval of a majority of the then outstanding shares of common stock that are not held by affiliated persons of the Advisor.

The Investment Period may be terminated upon 60 calendar days' written notice to the Advisor following a vote of at least 66 2/3 % of the then outstanding shares of common stock.

**Term**

The Company's term (the "Term") will continue until the close of business on the last day of the fiscal quarter during which the seventh anniversary of the Final Closing Date occurs. In addition, the Advisor may, with the consent of the holders of a majority of the then outstanding shares of common stock, extend the Term for up to two additional one-year periods.

The Company may be dissolved prior to the end of the Term (or such subsequent dates to which the Term has previously been extended) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•upon the termination of the Advisor for any reason and approval by stockholders of the dissolution of the Company by the vote of a majority of the votes cast in person or by proxy at a meeting of stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•when it becomes illegal or in the opinion of the board of directors impracticable or inadvisable to continue operating the Company, and the board of directors approves the dissolution of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•upon a determination by stockholders that the Company cannot by reason of its liabilities continue its business and that it be dissolved by the vote of a majority of the votes cast in person or by proxy at a meeting of stockholders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•upon stockholder approval of the dissolution of the Company by the vote of 75% of the votes cast in person or by proxy at a meeting of stockholders.

Any such election to dissolve the Company prior to the end of the Term will terminate the Investment Period.

As the Company approaches its termination date, the Advisor will seek to wind down the Company in an orderly manner, with the goal of maximizing the value of the Company's investments and investor returns. As the Company winds down, it may be impossible, impractical or inadvisable for it to continue to meet the RIC diversification requirements or it may be required to cease making follow-on investments in order to meet the RIC diversification requirements. If the Company fails to meet the diversification requirements it will not be able to maintain its RIC tax status. If the Company is unable to or expects that it will not be able to maintain its RIC tax

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status as the Company winds down, the Company may seek to (i) convert to a partnership for U.S. federal income tax purposes, (ii) convert to a C-corporation for U.S. federal income tax purposes, (iii) convert into, or contribute its assets to, a liquidating trust or (iv) form a new entity capitalized as a wholly owned subsidiary of the Company to make and hold follow-on investments. The board of directors, in consultation with the Investment Management, will determine at such time the best course of action, based on analysis of the Company's portfolio, market conditions, credit facility restrictions, if applicable, and investor considerations.

In connection with the dissolution of the Company, stockholders may be given the opportunity (but would not be required) to elect to exchange their interests in the Company for interests in another investment vehicle managed by the Advisor or its affiliates.

The Company will not conduct a public offering of its common stock without approval of a "majority of the outstanding voting securities" of the Company, as defined in the 1940 Act.

**Private Offering of Notes**

On the Initial Closing Date, the Company issued to each of approximately 110 separate investors a promissory note with a principal amount of $1,000 (each a "Note" and collectively the "Notes") in private placement transactions pursuant to certain exemptions of the Securities Act and the laws of the states and jurisdictions where such offerings were made. The purchase price for each Note was $1,000 per Note. The Company pays interest on the unpaid principal amount of the Notes at a rate of 12.00% per annum per Note payable semi-annually in arrears. The Notes have a 30-year term. Some or all of the Notes may be prepaid by the Company at any time, in whole or in part, provided that (i) the Company will pay on the date of such prepayment all accrued and unpaid interest due on such prepaid principal amount to and including the date of prepayment and (ii) if the prepayment occurs prior to December 31, 2022, the Company will pay on the date of such prepayment a one-time premium equal to $100 per Note.

**Leverage**

On June 18, 2021, the Company entered into a three-year revolving line of credit with Sumitomo Mitsui Banking Corporation as administrative agent, lead arranger and as a lender, with a capacity of up to $75 million, secured by the unfunded equity commitments of the Company's investors (the "Capital Call Facility"). The Capital Call Facility matures on June 16, 2023. Interest on the Capital Call Facility accrues at a rate equal to LIBOR plus 1.95% per annum, or, for short-term draws, a rate equal to the Prime Rate plus 0.95%, the Federal Funds Rate plus 1.45%, or one-month LIBOR plus 1.95%, whichever is highest. Commitment fees on the Capital Call Facility accrue at a rate of 0.225% per annum on the undrawn amount of the commitment. At December 31, 2022, there was $37.5 million drawn on the Capital Call Facility.

Other than the Notes and the Capital Call Facility described below, the Company will be unlevered. The amount of any such indebtedness secured by an assignment of the Company's right to call stockholder's capital commitments to lender (the "Credit Facility Debt") will not exceed 90% of the aggregate Capital Commitments to the Company. Pursuant to the 1940 Act, the Company may only draw upon such Credit Facility Debt in amounts such that the Company complies at the time of each such draw with the asset coverage requirements of the 1940 Act described below under "—Asset Coverage Requirement."

**Investment Management Agreement**

The Advisor is located at 100 Bellevue Parkway, Wilmington, Delaware 09809. The Advisor is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The Advisor is a wholly-owned subsidiary of BlackRock, Inc.

Under the terms of the Investment Management Agreement, the Advisor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•determines the composition of the Company's portfolio, the nature and timing of the changes to the Company's 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 the Company makes (including performing due diligence on prospective portfolio companies); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•closes, monitors and administers the investments the Company makes, including the exercise of any voting or consent rights.

The Advisor's services under the Investment Management Agreement are not exclusive, and it is free to furnish similar services to other entities so long as its services to the Company are not impaired.

Pursuant to the Investment Management Agreement, the Company pays the Advisor compensation for investment advisory and management services consisting of base management compensation and a two-part incentive compensation (the "Advisory Fee").

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Base Management Fee

The base management fee will be calculated at an annual rate of 0.90% of the Company's total assets (excluding cash and cash equivalents) on the last day of each preceding calendar quarter and will be payable quarterly in arrears. For purposes of calculating the base management fee, "total assets" is determined without deduction for any borrowings or other liabilities. No base management fee was payable for the period from the date of the initial Drawdown Purchase through the end of the first calendar quarter after the initial Drawdown Purchase. Subsequently, the base management fee is now calculated based on the value of the Company's total assets (excluding cash and cash equivalents) at the end of the most recently completed calendar quarter. The base management fees for any partial quarter will be appropriately prorated.

Incentive Fee

Incentive compensation will be payable to the Advisor pursuant to the Investment Management Agreement. The incentive fee will consist of two components. Each component of the incentive fee will be calculated and, if due, paid quarterly in arrears.

The ordinary income component of the incentive fee will be the amount, if positive, equal to 12.5% of the cumulative ordinary income before incentive compensation, less cumulative ordinary income incentive compensation previously paid. Notwithstanding the foregoing provision, the Company will not be obligated to pay any ordinary income incentive fee to the extent such amount would exceed 12.5% of the cumulative total return of the Company that exceeds an 6.857143% annual return on daily weighted average unreturned capital contributions, plus all of the cumulative total return that exceeds a 6.0% annual return on daily weighted average unreturned capital contributions but is less than an 6.857143% annual return on daily weighted average unreturned capital contributions, less cumulative ordinary income and capital gains incentive compensation previously paid.

The capital gains component of the incentive fee will be the amount, if positive, equal to 12.5% of the cumulative realized capital gains (computed net of cumulative realized losses and cumulative net unrealized capital depreciation, if any), less cumulative capital gains incentive compensation previously paid or distributed. The capital gains component will be paid in full prior to payment of the ordinary income component. Notwithstanding the foregoing provision, the Company will not be obligated to pay any capital gains incentive fee to the extent such amount would exceed 12.5% of the cumulative total return of the Company that exceeds a 6.857143% annual return on daily weighted average unreturned capital contributions, plus all of the cumulative total return that exceeds a 6.0% annual return on daily weighted average unreturned capital contributions but is less than an 6.857143% annual return on daily weighted average unreturned capital contributions, less cumulative ordinary income and capital gains incentive compensation previously paid.

For purposes of the foregoing computations and the total return limitation:

"<u>cumulative</u>" means amounts for the period commencing on the initial Drawdown Purchase date and ending as of the applicable calculation date;

"<u>ordinary income before incentive compensation</u>" means the Company's interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees received from portfolio companies) during the period, minus the Company's operating expenses during the period (including the base management fee, expenses payable under the administration agreements, any interest expense and any dividends paid on any issued and outstanding preferred stock), plus increases and minus decreases in net assets not treated as components of income, operating expense, gain, loss, appreciation or depreciation and not treated as changes in unreturned capital contributions, and without reduction for any incentive compensation and any organization or offering costs, in each case determined on an accrual and consolidated basis;

"<u>total return</u>" means the amount equal to the combination of ordinary income before incentive compensation, realized capital gains and losses and unrealized capital appreciation and depreciation of the Company for the period, in each case determined on an accrual and consolidated basis; and

"<u>unreturned capital contributions"</u> means the proceeds to the Company of all issuances of shares of common stock, less all distributions by the Company to stockholders representing a return of capital.

Any quarterly ordinary income incentive fee or capital gains incentive fee must not exceed the total return limitation described above. The following is graphical representation of the total return limitation:

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**Total Return Limitation**

**(based on cumulative annual total return)**

![img266173958_0.jpg](img266173958_0.jpg)

**Percentage of ordinary income and net realized capital gain separately payable at various levels of total return.**

Examples of Incentive Fee Calculation

The figures provided in the following examples are hypothetical, are presented for illustrative purposes only and are not indicative of actual expenses or returns.

**Examples of Incentive Compensation Calculation**

**Example 1: Income Portion of Incentive Compensation:**

**Assumptions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Total return hurdle = 6%

**Alternative 1**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.**Additional Assumptions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.cumulative gross ordinary income (including interest, dividends, fees, etc.) = 9.5%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.cumulative ordinary income before incentive compensation (gross ordinary income - (management fee + other expenses)) = 8.0%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.cumulative annual total return = 5.0%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Cumulative total return does not exceed total return hurdle, therefore there is no income incentive compensation.

**Alternative 2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.**Additional Assumptions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.cumulative gross ordinary income (including interest, dividends, fees, etc.) = 9.0%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.cumulative ordinary income before incentive compensation (gross ordinary income - (management fee + other expenses)) = 7.5%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.cumulative annual total return = 6.75%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Tentative incentive compensation = 12.5% x ordinary income before incentive compensation

= 12.5% x 7.5%

= 0.9375%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Total return after incentive compensation = 6.75% - 0.9375%

= 5.8125%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Cumulative ordinary income before incentive compensation is positive and the total return hurdle is less than total return but greater than total return after tentative incentive compensation, therefore incentive compensation is partially payable and = Total return – total return hurdle.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Incentive compensation is computed as 0% + (100% x (6.75% - 6.0%))

= 0% + (100% x 0.75%)

= 0 + 0.75%

= 0.75%

**Alternative 3**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.**Additional Assumptions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.cumulative gross ordinary income (including interest, dividends, fees, etc.) = 9.0%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.cumulative ordinary income before incentive compensation (gross ordinary income - (management fee + other expenses)) = 7.5%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.cumulative annual total return = 8.0%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Tentative incentive compensation = 12.5% x ordinary income before incentive compensation

= 12.5% x 7.5%

= 0.9375%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Total return after tentative incentive compensation = 8.0% - 0.9375%

= 7.0625%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Cumulative ordinary income before incentive compensation is positive and the total return after tentative incentive compensation exceeds the total return hurdle, therefore incentive compensation is fully payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Incentive compensation is computed as 0% + (100% x (6.857143% - 6.0%)) + (12.5% x (7.5% - 6.857143%))

= 0% + (100% x 0.857143%) + (12.5% x 0.642857%)

= 0% + 0.857143% + 0.080357%

= 0.9375%

**Example 2: Capital Gains Portion of Incentive Compensation:**

**Alternative 1**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.**Assumptions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Year 1: $20 million investment made in Company A ("**Investment A**"), and $30 million investment made in Company B ("**Investment B**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Year 2: Investment A sold for $50 million and fair market value, or fair market value ("FMV"), of Investment B determined to be $32 million. Cumulative annual total return of 20%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Year 3: FMV of Investment B determined to be $25 million. Cumulative annual total return of 15%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Year 4: Investment B sold for $31 million. Cumulative annual total return of 10%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The capital gains portion of the incentive compensation would be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Year 1: None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Year 2: Capital gains incentive compensation of $3.75 million ($3.75 million = $30 million realized capital gains on sale of Investment A multiplied by 12.5% and total return hurdle satisfied).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Year 3: None; no realized capital gains.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Year 4: Capital gains incentive compensation of $0.125 million ($31 million cumulative realized capital gains multiplied by 12.5%, less $3.75 million of capital gains incentive compensation paid in year 2 and total return hurdle satisfied).

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**Alternative 2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.**Assumptions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Year 1: $20 million investment made in Company A ("**Investment A**"), $30 million investment made in Company B ("**Investment B**") and $25 million investment made in Company C ("**Investment C**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Year 2: Investment A sold for $50 million, FMV of Investment B determined to be $25 million and FMV of Investment C determined to be $25 million. Cumulative annual total return of 10%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Year 3: FMV of Investment B determined to be $27 million and Investment C sold for $30 million. Cumulative annual total return of 5.5%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Year 4: FMV of Investment B determined to be $35 million. Cumulative annual total return of 15%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Year 5: Investment B sold for $40 million. Cumulative annual total return of 20%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The capital gains portion of the incentive compensation would be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Year 1: None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Year 2: Capital gains incentive compensation of $3.125 million; 12.5% multiplied by $25 million ($30 million realized capital gains on Investment A less $5 million unrealized capital depreciation on Investment B, and the total return hurdle is satisfied).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Year 3: None as the total return hurdle is not satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Year 4: Capital gains incentive compensation of $1.25 million ($35 million cumulative realized capital gains (including $5 million of realized capital gains from year 3 at a time when the total return hurdle was not satisfied and no cumulative unrealized capital depreciation) multiplied by 12.5%, less $3.125 million capital gains incentive compensation paid in year 2, and the total return hurdle is satisfied).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Year 5: Capital gains incentive compensation of $1.25 million ($45 million cumulative realized capital gains multiplied by 12.5%, less $4.375 million in capital gains incentive compensation paid in years 2 and 4, and the total return hurdle is satisfied).

Limitation of Liability and Indemnification

The Investment Management Agreement provides that the Advisor and its officers, directors, employees and affiliates are not liable to the Company or any stockholders for any act or omission by it or its employees in the supervision or management of the Company's investment activities or for any loss sustained by the Company or stockholders, except that the foregoing exculpation does not extend to any act or omission constituting willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations under the Investment Management Agreement. The Investment Management Agreement also provides for indemnification by the Company of the Advisor's members, directors, officers, employees, agents and control persons for liabilities incurred by it in connection with their services to the Company, subject to the same limitations and to certain conditions.

Board and Stockholder Approval of the Investment Management Agreement

The board of directors approved the Investment Management Agreement on November 19, 2020 and the Company's sole stockholder approved the Investment Management Agreement on November 19, 2020. In its consideration of the Investment Management Agreement, the board of directors focused on information it had received relating to, among other things: (a) the nature, quality and extent of the advisory and other services to be provided to the Company by the Advisor; (b) comparative data with respect to advisory fees or similar expenses paid by other business development companies with similar investment objectives; (c) the Company's projected operating expenses and expense ratio compared to business development companies with similar investment objectives; (d) any potential sources of indirect income to the Advisor from its relationships with the Company and the profitability of those relationships; (e) information about the services to be performed and the personnel who will perform such services under the Investment Management Agreement; (f) the organizational capability and financial condition of the Advisor and its affiliates; (g) the Advisor's practices regarding the selection and compensation of brokers that execute the Company's portfolio transactions and the brokers' provision of brokerage and research services to the Advisor; and (h) the possibility of obtaining similar services from other third party service providers or through an internally managed structure.

Based on the information reviewed and the discussions, the board of directors, including a majority of the non-interested directors, concluded that the investment management fee rates are reasonable in relation to the services to be provided.

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Duration and Termination

The Investment Management Agreement will remain in effect for a period of two years from the date of stockholder approval and thereafter will remain in effect from year to year if approved annually by the board of directors or by the affirmative vote of the holders of a majority of the Company's outstanding voting securities, which is defined in the 1940 Act as the lesser of a majority of the outstanding voting securities or 67% or more of the securities voting if a quorum of a majority of the outstanding voting securities is present, including, in either case, approval by a majority of the directors who are not interested persons. The Investment Management Agreement will automatically terminate in the event of its assignment. The Investment Management Agreement may be terminated by the Company without penalty upon not less than 60 days written notice to the Investment Management, as authorized either by the board of directors or by vote of stockholders. The Investment Management Agreement may be terminated by the Advisor without penalty upon not less than 120 days written notice to the Company.

**The Administrator**

BlackRock Financial Management, Inc. (the "Administrator") serves as the Company's administrator. The principle executive offices of the Administrator are located at 50 Hudson Yards, New York, New York 10001. The Company has entered into an administration agreement with the Administrator (the "Administration Agreement"). Pursuant to the Administration Agreement, the Administrator will perform (or oversee, or arrange for, the performance by third parties of) the administrative services necessary for the operation of the Company. Without limiting the generality of the foregoing, the Administrator will provide the Company with office facilities, equipment, clerical, bookkeeping and record keeping services at such office facilities and such other services as the Administrator, subject to review by the board of directors of the Company, will from time to time determine to be necessary or useful to perform its obligations under this Agreement. The Administrator will also, on behalf of the Company, arrange for the services of, and oversee, custodians, depositories, transfer agents, dividend disbursing agents, other stockholder servicing agents, accountants, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks, stockholders and such other persons in any such other capacity deemed to be necessary or desirable. The Administrator also makes reports to the Company's board of directors of its performance of obligations under the Administration Agreement and furnish advice and recommendations with respect to such other aspects of the business and affairs of the Company as it determines to be desirable. The Administrator is responsible for the financial and other records that the Company is required to maintain and will prepare all reports and other materials required by any agreement or to be filed with the SEC or any other regulatory authority, including reports on Forms 8-K, 10-Q and periodic reports to stockholders, determining the amounts available for distribution as dividends and distributions to be paid by the Company to its stockholders, review and implementation of any share purchase programs authorized by the board of directors and maintaining or overseeing the maintenance of the books and records of the Company as required under the 1940 Act and maintaining (or overseeing maintenance by other persons) such other books and records required by law or for the proper operation of the Company. In addition, the Administrator will assist the Company in determining and publishing the Company's net asset value, overseeing the preparation and filing of the Company's tax returns, and the printing and dissemination of reports to stockholders of the Company, and generally overseeing the payment of the Company's expenses and the performance of administrative and professional services rendered to the Company by others.

Pursuant to the Administration Agreement, in full consideration of the provision of the services of the Administrator, the Company reimburses the Administrator for the costs and expenses incurred by the Administrator in performing its obligations and providing personnel and facilities thereunder, including payments to the Administrator in an amount equal to the Company's allocable portion of overhead and other expenses incurred by the Administrator or its affiliate in performing its obligations and services under the Administration Agreement, such as rent, license fees and other costs associated with computer software utilized in providing such obligations and services and the Company's allocable portion of the cost of personnel attributable to performing such obligations and services, including, but not limited to, marketing, legal and other services performed by the Administrator for the Company. For the avoidance of doubt, the Company will bear its allocable portion of the costs of the compensation, benefits, and related administrative expenses (including travel expenses) of the Company's officers who provide operational and administrative services, their respective staffs and other professionals who provide services to the Company (including, in each case, employees of the Administrator or its affiliate) who assist with the preparation, coordination, and administration of the foregoing or provide other "back office" or "middle office" financial or operational services to the Company. The board of directors will periodically receive and review information regarding the allocation of such reimbursable expenses and will consider whether such allocations are fair and reasonable. Additionally, the Company will bear all of the costs and expenses of any sub-administration agreements entered into by the Administrator.

The board of directors approved the Administration Agreement on November 19, 2020, on the basis that it (i) is in the best interests of the Company and its stockholders; (ii) provides for services that are required for the Company's operations; and (iii) provides for fees that are fair and reasonable.

**Operating Expenses**

The Company will generally be responsible for all operating expenses of the Company ("Operating Expenses").

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Each of the Advisor and the Administrator, as applicable and except as noted elsewhere in this Registration Statement, will be responsible for, without reimbursement by the Company, all of its own day-to-day operating expenses, such as compensation of its professional staff and the cost of office space, office supplies, communications, utilities and other such normal overhead expenses. The Advisor will also be responsible for all legal, filing and other fees and expenses incurred in connection with the Advisor's registration and compliance with the Advisers Act and any related foreign laws, including: (i) all fees and expenses related to registration as an investment adviser under the Advisers Act and any related foreign laws, and the maintenance of such registration, and (ii) all fees and costs relating to the filing of the Form ADV of the Advisor (provided, that any compliance fees and costs that relate directly to the affairs of the Company (and not BlackRock-managed entities generally), including (but not limited to) costs of custodians and foreign registrations, will be expenses of the Company). For the avoidance of doubt, Operating Expenses will be borne by the Company and will not be considered administrative and overhead expenses of the Advisor or the Administrator.

**Regulation**

The Company has filed an election to be regulated as a BDC under the 1940 Act. The 1940 Act contains prohibitions and restrictions relating to transactions between BDCs and their affiliates (including any investment advisors or co-advisors), principal underwriters and affiliates of those affiliates or underwriters and requires that a majority of the directors be persons other than "interested persons," as that term is defined in the 1940 Act. In addition, the 1940 Act provides that the Company may not change the nature of the Company's business so as to cease to be, or to withdraw the Company's election as, a BDC unless approved by a majority of the Company's outstanding voting securities, which is defined in the 1940 Act as the lesser of a majority of the outstanding voting securities or 67% or more of the securities voting if a quorum of a majority of the outstanding voting securities is present.

The Company may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. With respect to such securities, the Company may, for the purpose of public resale, be deemed an "underwriter" as that term is defined in the Securities Act.

The Company may acquire securities issued by other investment companies in accordance with the limits of the 1940 Act and the rules and regulations promulgated thereunder. The Company generally may acquire up to 3% of the voting stock of any investment company, may invest in up to 5% of the value of its total assets in the securities of one investment company and may invest up to 10% of the value of its total assets in the securities of more than one investment company. Subject to certain exemptive rules, including, when it becomes effective, Rule 12d1-4, which was recently adopted by the SEC, the Company may, subject to certain conditions, invest in other investment companies in excess of such thresholds. With regard to that portion of the Company's portfolio invested in securities issued by investment companies, it should be noted that such investments might indirectly subject stockholders to additional expenses as they will indirectly be responsible for the costs and expenses of such companies. None of the Company's investment policies are fundamental and any may be changed without stockholder approval.

Exemptive Order. The Advisor and the Company believe that, in certain circumstances, it may be in the Company's best interests to be able to co-invest with registered funds, unregistered funds and business development companies managed now or in the future by the Advisor and its affiliates in order to be able to participate in a wider range of transactions. Currently, SEC regulations and interpretations would permit the Company to co-invest with registered and unregistered funds that are affiliated with the Advisor in publicly traded securities and also in private placements where (i) the Advisor negotiates only the price, interest rate and similar price-related terms of the securities and not matters such as covenants, collateral or management rights and (ii) each relevant account acquires and sells the securities at the same time in pro rata amounts (subject to exceptions approved by compliance personnel after considering the reasons for the requested exception). Such regulations and interpretations also permit the Company to co-invest in other private placements with registered investment funds affiliated with the Advisor in certain circumstances, some of which would require certain findings by the Company's directors who are not "interested persons" of the Advisor, BlackRock or their respective affiliates as defined in Section 2(a)(19) of the 1940 Act ("Independent Directors") and the independent directors of each other eligible registered fund. However, current SEC regulations and interpretations would not permit co-investment by the Company with unregistered funds affiliated with the Advisor in private placements where the Advisor negotiates non-pricing terms such as covenants, collateral and management rights. Accordingly, under current SEC regulations, in the absence of an exemption the Company may be prohibited from co-investing in certain private placements with any unregistered fund or account managed now or in the future by the Advisor or its affiliates.

The Advisor and various funds managed by the Advisor have received an exemption from such regulations. Under the SEC order granting such exemption, each time the Advisor proposes that an unregistered fund, business development company or registered fund acquire private placement securities that are suitable for the Company, the Advisor will prepare a recommendation as to the proportion to be allocated to the Company taking into account a variety of factors such as the investment objectives, size of transaction, investable assets, alternative investments potentially available, prior allocations, liquidity, maturity, expected holding period, diversification, lender covenants and other limitations. The Company's Independent Directors will review the proposed transaction and may authorize co-investment by the Company of up to its pro rata amount of such securities based on its total available capital if a majority of them conclude that: (i) the transaction is consistent with the Company's investment objective and policies; (ii) the terms of co-investment are

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fair to the Company and stockholders and do not involve overreaching; and (iii) participation by the Company would not disadvantage the Company or be on a basis different from or less advantageous than that of the participating unregistered accounts and other registered funds. If the Advisor determines that the Company should not participate in the co-investment opportunity that would otherwise be suitable in light of the Company's investment objective, this determination must also be submitted to the Independent Directors for their approval. The directors may also approve a lower amount or determine that the Company should not invest. The directors may also approve a higher amount to the extent that other accounts managed by the Advisor decline to participate. In addition, private placement follow-on investments and disposition opportunities must be made available in the same manner on a pro rata basis and no co-investment (other than permitted follow-on investments) is permitted where the Company, on the one hand, or any other account advised by the Advisor or an affiliate, on the other hand, already hold securities of the issuer.

The Advisor and its affiliates may spend substantial time on other business activities, including investment management and advisory activities for entities with the same or overlapping investment objectives, investing for their own account with the Company, financial advisory services (including services for entities in which the Company invests), and acting as directors, officers, creditor committee members or in similar capacities. Subject to the requirements of the 1940 Act, the Advisor and its affiliates and associates intend to engage in such activities and may receive compensation from third parties for their services. Subject to the same requirements, such compensation may be payable by entities in which the Company invests in connection with actual or contemplated investments, and the Advisor may receive fees and other compensation in connection with structuring investments which they will share.

The Advisor and its partners, officers, directors, stockholders, members, managers, employees, affiliates and agents may be subject to certain potential or actual conflicts of interest in connection with the activities of, and investments by, the Company.

No-Action Relief from Registration as a Commodity Pool Operator. The Company is relying on a no-action letter (the "No-Action Letter") issued by the staff of the Commodity Futures Trading Commission (the "CFTC") as a basis to avoid registration with the CFTC as a commodity pool operator ("CPO"). The No-Action Letter allows an entity to engage in CFTC-regulated transactions ("commodity interest transactions") that are "bona fide hedging" transactions (as that term is defined and interpreted by the CFTC and its staff), but prohibit an entity from entering into commodity interest transactions if they are non-bona fide hedging transactions, unless immediately after entering such non-bona fide hedging transaction (a) the sum of the amount of initial margin deposits on the entity's existing futures or swaps positions and option or swaption premiums does not exceed 5% of the market value of the entity's liquidation value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the entity's commodity interest transactions would not exceed 100% of the market value of the entity's liquidation value, after taking into account unrealized profits and unrealized losses on any such transactions. The Company is required to operate pursuant to these trading restrictions if it intends to continue to rely on the No-Action Letter as a basis to avoid CPO registration.

Other. The Company may also be prohibited under the 1940 Act from knowingly participating in certain transactions with the Company's affiliates without the prior approval of the board of directors who are not interested persons and, in some cases, prior approval by the SEC.

The Company is subject to periodic examination by the SEC for compliance with the 1940 Act.

The Company is required to provide and maintain a bond issued by a reputable fidelity insurance company to protect the Company against larceny and embezzlement. Furthermore, as a BDC, the Company is prohibited from protecting any director or officer against any liability to the Company or stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person's office.

The Company and the Advisor are required to adopt and implement written policies and procedures reasonably designed to prevent violation of relevant federal securities laws, review these policies and procedures annually for their adequacy and the effectiveness of their implementation, and designate a chief compliance officer to be responsible for administering these policies and procedures.

**Qualifying Assets**

Under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in section 55(a) of the 1940 Act, which are referred to as qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company's total assets. The principal categories of qualifying assets relevant to the Company's business are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company, or from any person who is, or has been during the

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preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. An eligible portfolio company is defined in the 1940 Act as any issuer which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•is organized under the laws of, and has its principal place of business in, the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•is not an investment company (other than a small business investment company wholly owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and satisfies either of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•has a market capitalization of less than $250.0 million or does not have any class of securities listed on a national securities exchange; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•is controlled by a BDC or a group of companies including a BDC, the BDC actually exercises a

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•controlling influence over the management or policies of the eligible portfolio company, and, as a

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•result thereof, the BDC has an affiliated person who is a director of the eligible portfolio company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Securities of any eligible portfolio company which the Company controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and the Company already owns 60% of the outstanding equity of the eligible portfolio company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Securities received in exchange for or distributed on or with respect to securities described above, or pursuant to the exercise of warrants or rights relating to such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cash, cash equivalents, U.S. Government securities or high-quality debt securities maturing in one year or less from the time of investment.

**Asset Coverage Requirement**

Under Section 61(a) of the 1940 Act, a BDC is generally not permitted to issue senior securities unless after giving effect thereto the BDC met a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which includes all borrowings of the BDC, of at least 200%. Provided that a BDC meets certain disclosure requirements and obtains certain approvals, the asset coverage requirement applicable to such BDC is reduced from 200% to 150%. The reduced asset coverage requirement permits a BDC to have a ratio of total outstanding indebtedness to net assets of 2:1 as compared to a maximum of 1:1 under the 200% asset coverage requirement.

In accordance with the 1940 Act, with certain limited exceptions, the Company is allowed to borrow amounts such that the Company's asset coverage ratio, as defined in the 1940 Act, equals at least 200% after such borrowing.

**Managerial Assistance to Portfolio Companies**

A BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities described in "qualifying assets" above. However, in order to count portfolio securities as qualifying assets for the purpose of the 70% test, the BDC must either control the issuer of the securities or must offer to make available to the issuer of the securities significant managerial assistance. Where the BDC purchases such securities in conjunction with one or more other persons acting together, the BDC will satisfy this test if one of the other persons in the group makes available such managerial assistance, although reliance on other investors may not be the sole method by which the BDC satisfies the requirement to make available managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its Advisor, directors, officers or employees, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company.

**Taxation of the Company**

We have elected to be taxed as an RIC under Subchapter M of the Code. To qualify as a RIC, we must, among other things, (a) derive in each taxable year at least 90 percent of our gross income from dividends, interest (including tax-exempt interest), payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, other income (including but not limited to gain from options, futures and forward contracts) derived with respect to our business of investing in stock,

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securities or currencies, or net income derived from an interest in a "qualified publicly traded partnership" (a "QPTP"); and (b) diversify our holdings so that, at the end of each quarter of each taxable year (i) at least 50 percent of the market value of our total assets is represented by cash and cash items, U.S. Government securities, the securities of other RICs and other securities, with other securities limited, in respect of any one issuer, to an amount not greater than five percent of the value of our total assets and not more than 10 percent of the outstanding voting securities of such issuer, and (ii) not more than 25 percent of the market value of our total assets is invested in the securities (other than U.S. Government securities and the securities of other RICs) (A) of any issuer, (B) of any two or more issuers that we control and that are determined to be engaged in the same business or similar or related trades or businesses, or (C) of one or more QPTPs. The Code provides for certain exceptions to the foregoing diversification requirements. We may generate certain income that might not qualify as good income for purposes of the 90% annual gross income requirement described above. We monitor our transactions to endeavor to prevent our disqualification as a RIC.

If we fail to satisfy the 90% annual gross income requirement or the asset diversification requirements discussed above in any taxable year, we may be eligible for relief provisions if the failures are due to reasonable cause and not willful neglect and if a penalty tax is paid with respect to each failure to satisfy the applicable requirements. Additionally, relief is provided for certain de minimis failures of the asset diversification requirements where we correct the failure within a specified period. If the applicable relief provisions are not available or cannot be met, all of our income would be subject to corporate-level U.S. federal income tax as described below. We cannot provide assurance that we would qualify for any such relief should we fail the 90% annual gross income requirement or the asset diversification requirements discussed above.

As a RIC, in any taxable year with respect to which we timely distribute at least 90% of the sum of our (i) investment company taxable income (which includes, among other items, dividends, interest and the excess of any net short-term capital gain over net long-term capital loss and other taxable income (other than any net capital gain), reduced by deductible expenses) determined without regard to the deduction for dividends and distributions paid and (ii) net tax exempt interest income (which is the excess of our gross tax exempt interest income over certain disallowed deductions) (the "Annual Distribution Requirement"), we (but not our stockholders) generally will not be subject to U.S. federal income tax on investment company taxable income and net capital gain (generally, net long-term capital gain in excess of short-term capital loss) that we distribute to our stockholders. We intend to distribute annually all or substantially all of such income on a timely basis. To the extent that we retain our net capital gain for investment or any investment company taxable income, we will be subject to U.S. federal income tax at the regular corporate income tax rates. We may choose to retain our net capital gains for investment or any investment company taxable income, and pay the associated federal corporate income tax, including the federal excise tax described below.

Certain amounts not distributed during a calendar year are subject to a nondeductible four percent U.S. federal excise tax payable by us. To avoid this tax, we would need to distribute (or be deemed to have distributed) during each calendar year an amount equal to the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)at least 98 percent of our ordinary income (not taking into account any capital gains or losses) for the calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)at least 98.2 percent of the amount by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made by us to use our taxable year); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)certain undistributed amounts from previous years on which we paid no U.S. federal income tax.

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

If, in any particular taxable year, we do not satisfy the Annual Distribution Requirement or otherwise were to fail to qualify as a RIC (for example, because we fail the 90% annual gross income requirement described above), and relief is not available as discussed above, all of our taxable income (including our net capital gains) will be subject to tax at regular corporate rates without any deduction for distributions to stockholders, and distributions generally will be taxable to the stockholders as ordinary dividends to the extent of our current and accumulated earnings and profits.

We may decide to be taxed as a regular corporation even if we would otherwise qualify as a RIC if we determine that treatment as a corporation for a particular year would be in our best interests.

As a RIC, we are permitted to carry forward a net capital loss realized in a taxable year to offset capital gain indefinitely. If future capital gain is offset by carried forward capital losses, such future capital gain is not subject to fund-level U.S. federal income tax, regardless of whether they are distributed to stockholders. Accordingly, we do not expect to distribute any such offsetting capital gain.

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**Brokerage Allocations and other Practices**

Decisions to buy and sell securities and bank debt for the Company and decisions regarding brokerage commission rates are made by the Advisor. Transactions on stock exchanges involve the payment by the Company of brokerage commissions. In certain instances, the Company may make purchases of underwritten issues at prices which include underwriting fees.

In selecting a broker to execute each particular transaction, the Advisor will take the following into consideration: the best net price available; the reliability, integrity and financial condition of the broker; the size and difficulty in executing the order, and the value of the expected contribution of the broker to the investment performance of the Company on a continuing basis. Accordingly, the cost of the brokerage commissions to the Company in any transaction may be greater than that available from other brokers if the difference is reasonably justified by other aspects of the portfolio execution services offered. The extent to which the Advisor makes use of statistical, research and other services furnished by brokers may be considered by the Advisor in the allocation of brokerage business, but there is not a formula by which such business is allocated. The Advisor does so in accordance with its judgment of the best interests of the Company and its stockholders.

One or more of the other investment funds or accounts which the Advisor manages may own from time to time some of the same investments as the Company. When two or more companies or accounts seek to purchase or sell the same securities, the securities actually purchased or sold and any transaction costs will be allocated among the companies and accounts on a good faith equitable basis by the Advisor in its discretion in accordance with the accounts' various investment objectives, subject to the allocation procedures adopted by the board of directors related to privately placed securities (including an implementation of any co-investment exemptive relief obtained by the Company and the Advisor). In some cases, this system may adversely affect the price or size of the position obtainable for the Company. In other cases, however, the ability of the Company to participate in volume transactions may produce better execution for the Company. It is the opinion of the board of directors that this advantage, when combined with the other benefits available due to the Advisor's organization, outweighs any disadvantages that may be said to exist from exposure to simultaneous transactions.

Codes of Ethics

The Company adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that establishes procedures for personal investments and restricts certain personal securities transactions. Personnel subject to such code may invest in securities for their personal investment accounts, including securities that may be purchased or held by the Company, so long as such investments are made in accordance with the code's requirements. You may read and copy the code of ethics at the SEC's Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling the SEC at (202) 551-8090. In addition, the code of ethics is attached as an exhibit to this Registration Statement, and is available on the IDEA Database on the SEC's Internet site at http://www.sec.gov. You may also obtain copies of the code of ethics, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov, or by writing the SEC's Public Reference Section, 100 F Street, N.E., Washington, D.C. 20549.

Proxy Voting Policies and Procedures

The Company has delegated proxy voting responsibility to the Advisor. A summary of the Proxy Voting Policies and Procedures of the Advisor are set forth below. The guidelines are reviewed periodically by the Advisor and the Company's non-interested directors, and, accordingly, are subject to change.

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

The Advisor votes proxies relating to the Company's portfolio securities in the best interest of stockholders. The Advisor reviews on a case-by-case basis each proposal submitted for a proxy vote to determine its impact on the Company's investments. Although it generally votes against proposals that may have a negative impact on the Company's investments, it may vote for such a proposal if there are compelling long-term reasons to do so.

The proxy voting decisions of the Advisor are made by the senior officers who are responsible for monitoring each of the Company's investments. To ensure that the Company's vote is not the product of a conflict of interest, it requires that: (i) anyone involved in the decision making process disclose to the Advisor any potential conflict that he or she is aware of and any contact that he or she has had with any interested party regarding a proxy vote; and (ii) employees involved in the decision making process or vote

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administration are generally prohibited from revealing how the Company intends to vote on a proposal in order to reduce any attempted influence from interested parties.

You may obtain information about how the Company voted proxies by making a written request for proxy voting information to the Company, 2951 28th Street, Santa Monica, California 90405, Attention: Investor Relations.

**Privacy Principles**

The Company is committed to maintaining the privacy of stockholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Company collects, how the Company protects that information and why, in certain cases, the Company may share information with select other parties.

The Company does not disclose any non-public personal information about stockholders or former stockholders to anyone, except as permitted by law or as is necessary in order to service stockholder accounts (for example, to a transfer agent or third-party administrator).

The Company restricts access to non-public personal information about stockholders to employees of the Advisor and its affiliates with a legitimate business need for the information. The Company maintains physical, electronic and procedural safeguards designed to protect the non-public personal information of stockholders.

**Sarbanes-Oxley Act of 2002**

The Sarbanes-Oxley Act of 2002 imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. While certain of these requirements are not applicable to the Company (see "—JOBS Act"), many of these requirements affect the Company. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934 ("the 1934 Act"), the Company's Chief Executive Officer and Chief Financial Officer must certify the accuracy of the financial statements contained in the Company's periodic reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Pursuant to Item 307 of Regulation S-K, the Company's periodic reports must disclose the Company's conclusions about the effectiveness of disclosure controls and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Pursuant to Rule 13a-15 of the 1934 Act, Company management must prepare a report regarding its assessment of internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the 1934 Act, the Company's periodic reports must disclose whether there were significant changes in internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

The Sarbanes-Oxley Act requires the Company to review its current policies and procedures to determine whether the Company complies with the Sarbanes-Oxley Act and the regulations promulgated thereunder. The Company will continue to monitor compliance with all regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that the Company is in compliance therewith.

**JOBS Act**

The Company currently is and expects to remain an "emerging growth company," as defined in the Jumpstart Our Business Startups Act (the "JOBS Act"), until the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The last day of the Company's fiscal year in which the fifth anniversary of an initial public offering of shares of common stock occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The end of the fiscal year in which the Company's total annual gross revenues first exceed $1.0 billion;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The date on which the Company has, during the prior three-year period, issued more than $1.0 billion in non-convertible debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The last day of a fiscal year in which the Company (1) has an aggregate worldwide market value of common stock held by non-affiliates of $700 million or more, computed at the end of each fiscal year as of the last business day of the Company's most recently completed second fiscal quarter and (2) has been a 1934 Act reporting company for at least one year (and filed at least one annual report under the 1934 Act).

Under the JOBS Act and the Dodd-Frank Act, the Company is exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act, which would require that the Company's independent registered public accounting firm provide an attestation report on the effectiveness of internal control over financial reporting, until such time as the Company ceases to be an emerging growth company and becomes an accelerated filer as defined in Rule 12b-2 under the 1934 Act. This may increase the risk that material weaknesses or other deficiencies in the Company's internal control over financial reporting go undetected.

Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. The Company has made an irrevocable election not to take advantage of this exemption from new or revised accounting standards. The Company therefore is subject to the same new or revised accounting standards as other public companies that are not emerging growth companies.

**Available Information**

We file annual, quarterly and current reports, proxy statements and all amendments to these reports and other information with the SEC. We will provide, without charge, upon written request, a copy of the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and all amendments to those filings as well as the committee charters, our Code of Ethics and our SOX Code of Ethics. Requests for copies should be addressed to: BlackRock Direct Lending Corp., 2951 28th Street, Suite 1000, Santa Monica, CA 90405, Attention: Investor Relations. Reports, proxy statements and other information regarding issuers that file electronically with the SEC, including our filings, are also available to the public from the SEC's website at http://www.sec.gov.

**Compliance Policies and Procedures**

We and the Advisor have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws. We are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation and to designate a chief compliance officer to be responsible for their administration. Charles Park currently serves as our chief compliance officer.

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**Item 1A. Risk Factors**

An investment in the Company's common stock is speculative and includes a high degree of risk, including the risk of a total loss of capital. Shares of our common stock are, and our investments will likely be, illiquid and subject to significant restrictions on transfer. Investors should be aware that they may be required to bear the risks associated with such investments for an indefinite period of time. The risks set forth below are not the only risks we face, and we face other risks which we have not yet identified or which are not yet predictable. If any of the following risks occur, our business, financial condition and results of operations could be materially adversely affected.

**Risks Related to Our Business**

**Market disruptions and other geopolitical or macroeconomic events could create market volatility that negatively impacts our business, financial condition and earnings.**

General economic and market conditions, such as interest rates, availability of credit, inflation rates, economic uncertainty, supply chain disruptions, labor shortages, energy and other resource shortages, changes in laws, trade barriers, currency exchange controls and national and international political circumstances, may have long-term negative effects on the U.S. and worldwide financial markets and economy. These conditions have resulted in, and in many cases continue to result in, greater price volatility, less liquidity, widening credit spreads and a lack of price transparency, with many securities remaining illiquid and of uncertain value. Such market conditions may adversely affect the Company, including by making valuation of some of the Company's securities uncertain and/or result in sudden and significant valuation increases or declines in the Company's holdings. If there is a significant decline in the value of the Company's portfolio, this may impact the asset coverage levels for the Company's outstanding leverage.

Risks resulting from any future debt or other economic crisis could also have a detrimental impact on the global economy, the financial condition of financial institutions and our business, financial condition and results of operation. Market and economic disruptions have affected, and may in the future affect, consumer confidence levels and spending, personal bankruptcy rates, levels of incurrence and default on consumer debt and home prices, among other factors. To the extent uncertainty regarding the U.S. or global economy negatively impacts consumer confidence and consumer credit factors, our business, financial condition and results of operations could be significantly and adversely affected. Downgrades to the credit ratings of major banks could result in increased borrowing costs for such banks and negatively affect the broader economy. Moreover, Federal Reserve policy, including with respect to certain interest rates, may also adversely affect the value, volatility and liquidity of dividend- and interest-paying securities. Market volatility, rising interest rates and/or a return to unfavorable economic conditions could impair the Company's ability to achieve its investment objective.

The occurrence of events similar to those in recent years, such as localized wars, instability, new and ongoing pandemics (such as COVID-19), epidemics or outbreaks of infectious diseases in certain parts of the world, and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics, terrorist attacks in the U.S. and around the world, social and political discord, debt crises sovereign debt downgrades, increasingly strained relations between the U.S. and a number of foreign countries, new and continued political unrest in various countries, the exit or potential exit of one or more countries from the EU or the EMU, continued changes in the balance of political power among and within the branches of the U.S. government, government shutdowns, among others, may result in market volatility, may have long term effects on the U.S. and worldwide financial markets, and may cause further economic uncertainties in the U.S. and worldwide.

In particular, the consequences of the Russian military invasion of Ukraine, the impact on inflation and increased disruption to supply chains and energy resources may impact our portfolio companies, result in an economic downturn or recession either globally or locally in the U.S. or other economies, reduce business activity, spawn additional conflicts (whether in the form of traditional military action, reignited "cold" wars or in the form of virtual warfare such as cyberattacks) with similar and perhaps wider ranging impacts and consequences and have an adverse impact on the Company's returns and net asset value. In response to the conflict between Russia and Ukraine, the U.S. and other countries have imposed sanctions or other restrictive actions against Russia, Russian-backed separatist regions in Ukraine, and certain banks, companies, government officials and other individuals in Russia and Belarus. Any of the above factors, including sanctions, export controls, tariffs, trade wars and other governmental actions, could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline. We have no way to predict the duration or outcome of the situation, as the conflict and government reactions are rapidly developing and beyond our control. Prolonged unrest, military activities, or broad-based sanctions could have a material adverse effect on our portfolio companies. Such consequences also may increase our funding cost or limit our access to the capital markets.

The current political climate has intensified concerns about a potential trade war between China and the U.S., as each country has imposed tariffs on the other country's products. These actions may trigger a significant reduction in international trade, the oversupply

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of certain manufactured goods, substantial price reductions of goods and possible failure of individual companies and/or large segments of China's export industry, which could have a negative impact on our performance. U.S. companies that source material and goods from China and those that make large amounts of sales in China would be particularly vulnerable to an escalation of trade tensions. Uncertainty regarding the outcome of the trade tensions and the potential for a trade war could cause the U.S. dollar to decline against safe haven currencies, such as the Japanese yen and the euro. Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be imposed or other escalating actions may be taken in the future. Any of these effects could have a material adverse effect on our business, financial condition and results of operations.

The effects described above on our portfolio companies could impact their ability to make payments on their loans on a timely basis and may impact their ability to continue making their loan payments on a timely basis or meeting their loan covenants. The inability of portfolio companies to make timely payments or meet loan covenants may in the future require us to undertake amendment actions with respect to our investments or to restructure our investments, which may include the need for us to make additional investments in our portfolio companies (including debt or equity investments) beyond any existing commitments, exchange debt for equity, or change the payment terms of our investments to permit a portfolio company to pay a portion of its interest through payment-in-kind, which would defer the cash collection of such interest and add it to the principal balance, which would generally be due upon repayment of the outstanding principal.

**Economic recessions or downturns could impair our portfolio companies and harm our operating results.**

Market disruptions and other geopolitical or macroeconomic events could create market volatility that negatively impact our business.

Many of our portfolio companies may be susceptible to economic slowdowns or recessions and may be unable to repay our loans during these periods. Therefore, our non-performing assets may increase and the value of our portfolio may decrease during these periods as we are required to record the values of our investments. Adverse economic conditions also may decrease the value of collateral securing some of our loans and the value of our equity investments. Economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing investments and harm our operating results.

A portfolio company's failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its secured assets, which could trigger cross-defaults under other agreements and jeopardize our portfolio company's ability to meet its obligations under the debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. In addition, if one of our portfolio companies were to go bankrupt, even though we or one of our affiliates may have structured our interest in such portfolio company as senior debt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company, a bankruptcy court might re-characterize our debt holding as equity and subordinate all or a portion of our claim to claims of other creditors

Recently, central banks such as the Federal Reserve Bank have been increasing interest rates in an effort to slow the rate of inflation. There is a risk that increased interest rates may cause the economy to enter a recession. Any such recession would negatively impact the businesses in which we invest and our business. These impacts may include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•severe declines in net asset value of our securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•inability of the Company to accurately or reliably value its portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•inability of the Company to comply with certain asset coverage ratios that would prevent the Company from paying dividends to our stockholders and that could result breaches of covenants or events of default under our credit agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•inability of the Company to pay any dividends and distributions or service its debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•inability of the Company to maintain its status as a RIC under the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•declines in the value of our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increased risk of default or bankruptcy by the companies in which we invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increased risk of companies in which we invest being unable to weather an extended cessation of normal economic activity and thereby impairing their ability to continue functioning as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•limited availability of new investment opportunities;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•inability for us to replace our existing leverage when it becomes due or replace it on terms as favorable as our existing leverage; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general threats to the Company's ability to continue investment operations and to operate successfully as a BDC.

**We are subject to risks related to inflation.**

Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. Recently, inflation has increased to its highest level in decades, and the Federal Reserve has been raising the federal funds rate in response. Inflation rates may change frequently and significantly as a result of various factors, including unexpected shifts in the domestic or global economy and changes in economic policies, and the Company's investments may not keep pace with inflation, which may result in losses to shareholders. As inflation increases, the real value of our shares and dividends therefore may decline. In addition, during any periods of rising inflation, interest rates of any debt securities issued by the Company would likely increase, which would tend to further reduce returns to shareholders. Inflation rates may change frequently and significantly as a result of various factors, including unexpected shifts in the domestic or global economy and changes in economic policies, and our investments may not keep pace with inflation, which may result in losses to our shareholders. This risk is greater for fixed-income instruments with longer maturities.

**Capital markets may experience periods of disruption and instability. Such market conditions may materially and adversely affect debt and equity capital markets in the U.S. and abroad, which may have a negative impact on our business and operations.**

From time to time, capital markets may experience periods of disruption and instability, which may be evidenced by a lack of liquidity in debt capital markets, write-offs in the financial services sector, re-pricing of credit risk and failure of certain major financial institutions. While the extreme volatility and disruption that U.S. and global markets experienced for an extended period of time beginning in 2007 and 2008 had, until the recent coronavirus (COVID-19) outbreak, generally subsided, uncertainty and periods of volatility still remain, and risks to a robust resumption of growth persist.

Our ability to incur indebtedness (including by issuing preferred stock) is limited by applicable regulations such that our asset coverage ratio, as calculated in accordance with the 1940 Act, must equal at least 150% immediately after each time we incur indebtedness. The debt capital that will be available to us in the future, if at all, may be at a higher cost and on less favorable terms and conditions than our current leverage. Any inability to raise capital could have a negative effect on our business, financial condition and results of operations.

Market conditions may in the future make it difficult to extend the maturity of or refinance our existing indebtedness and any failure to do so could have a material adverse effect on our business. The debt capital that will be available to us in the future, if at all, may be at a higher cost and on less favorable terms and conditions than what we currently experience. Further, if we are unable to raise or refinance debt, then our equity investors may not benefit from the potential for increased returns on equity resulting from leverage and we may be limited in our ability to make new commitments or to fund existing commitments to our portfolio companies.

The illiquidity of our investments may make it difficult for us to sell such investments if required. As a result, we may realize significantly less than the value at which we have recorded our investments. While most of our investments are not publicly traded, applicable accounting standards require us to assume as part of our valuation process that our investments are sold in a principal market to market participants (even if we plan on holding an investment through its maturity) In addition, significant changes in the capital markets, including disruption and volatility, have had, and may in the future have, a negative effect on the valuations of our investments and on the potential for liquidity events involving our investments. An inability to raise capital, and any required sale of our investments for liquidity purposes, could have a material adverse impact on our business, financial condition and results of operations.

**Price declines and illiquidity in the corporate debt markets have adversely affected, and may in the future adversely affect, the fair value of our portfolio investments, reducing our net asset value through increased net unrealized depreciation.**

As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at fair value as determined in good faith by the Valuation Designee. Decreases in the market values or fair values of our investments are recorded as unrealized depreciation, which reduces our net asset value. Depending on market conditions, we could incur substantial realized losses and may suffer additional unrealized losses in future periods, which could have a material adverse impact on our business, financial condition and results of operations.

**Changes in legal, tax and regulatory regimes could negatively impact our business, financial condition and earnings.**

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Changes enacted by the current presidential administration could significantly impact the regulation of financial markets in U.S. Areas subject to potential change, amendment or repeal include trade and foreign policy, corporate tax rates, energy and infrastructure policies, the environment and sustainability, criminal and social justice initiatives, immigration, healthcare and the oversight of certain federal financial regulatory agencies and the Federal Reserve. Certain of these changes can, and have, been effectuated through executive order. For example, the current administration has taken steps to rejoin the Paris climate accord of 2015 and incentivize certain clean energy technologies, cancel the Keystone XL pipeline, provide military support to Ukraine and change immigration enforcement priorities. Other potential changes that could be pursued by the current presidential administration could include an increase in the corporate income tax rate; changes to regulatory enforcement priorities; and spending on clean energy and infrastructure. It is not possible to predict which, if any, of these actions will be taken or, if taken, their effect on the economy, securities markets or the financial stability of the U.S. The Company may be affected by governmental action in ways that are not foreseeable, and there is a possibility that such actions could have a significant adverse effect on the Company and its ability to achieve its investment objective.

Additional risks arising from the differences in expressed policy preferences among the various constituencies in the branches of the U.S. government has led in the past, and may lead in the future, to short-term or prolonged policy impasses, which could, and has, resulted in shutdowns of the U.S. federal government. U.S. federal government shutdowns, especially prolonged shutdowns, could have a significant adverse impact on the economy in general and could impair the ability of issuers to raise capital in the securities markets. Any of these effects could have a material adverse effect on our business, financial condition and results of operations.

In addition, the rules dealing with the U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Treasury Department. The Tax Cuts and Jobs Act made substantial changes to the Code. Among those changes were a significant permanent reduction in the generally applicable corporate tax rate, changes in the taxation of individuals and other non-corporate taxpayers that generally but not universally reduce their taxes on a temporary basis subject to "sunset" provisions, the elimination or modification of various previously allowed deductions (including substantial limitations on the deductibility of interest and, in the case of individuals, the deduction for personal state and local taxes), certain additional limitations on the deduction of net operating losses, certain preferential rates of taxation on certain dividends and certain business income derived by non-corporate taxpayers in comparison to other ordinary income recognized by such taxpayers, and significant changes to the international tax rules. In addition, the Biden administration has indicated that it intends to modify key aspects of the Code, including by increasing corporate and individual tax rates. The effect of these and other changes is uncertain, both in terms of the direct effect on the taxation of an investment in the Company's shares and their indirect effect on the value of the Company's assets, the Company's shares or market conditions generally.

**Changes to U.S. tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.**

There has been ongoing discussion and commentary regarding potential significant changes to U.S. trade policies, treaties and tariffs. There remains uncertainty about the future relationship between the U.S. and other countries with respect to the trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the U.S. Any of these factors could depress economic activity and restrict our portfolio companies' access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us.

**Uncertainty regarding the impact of the United Kingdom's departure from the European Union could negatively impact our business, financial condition and earnings.**

On January 31, 2020, the United Kingdom officially withdrew from the EU, commonly referred to as "Brexit". Following a transition period, the United Kingdom and the EU signed a Trade and Cooperation Agreement ("UK/EU Trade Agreement"), which came into full force on May 1, 2021 and set out the foundation of the economic and legal framework for trade between the United Kingdom and the EU. As the UK/EU Trade Agreement is a new legal framework, the implementation of the UK/EU Trade Agreement may result in uncertainty in its application and periods of volatility in both the United Kingdom and wider European markets. The United Kingdom's exit from the EU is expected to result in additional trade costs and disruptions in this trading relationship. Furthermore, there is the possibility that either party may impose tariffs on trade in the future in the event that regulatory standards between the EU and the UK diverge. The terms of the future relationship may cause continued uncertainty in the global financial markets, and adversely affect our ability, and the ability of our portfolio companies, to execute our respective strategies and to receive attractive returns.

 **Rising interest rates or changes in interest rates may adversely affect the value of our portfolio investments which could have an adverse effect on our business, financial condition and results of operations.**

Our debt investments are generally based on floating rates, such as London Interbank Offer Rate ("LIBOR"), EURIBOR, Secured Overnight Financing Rate ("SOFR")<u>,</u> the Federal Funds Rate or the Prime Rate. General interest rate fluctuations may have a substantial

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negative impact on our investments, the value of our common stock and our rate of return on invested capital. An increase in interest rates generally will increase the cost of borrowing for the companies in which we invest and may make them less profitable, which generally would decrease the value of our investments in them. In addition, although we generally expect to invest a limited percentage of our assets in instruments with a fixed interest rate, including subordinated loans, senior and junior secured and unsecured debt securities and loans in high yield bonds, an increase in interest rates could decrease the value of those fixed rate investments. Rising interest rates may also increase the cost of debt for our underlying portfolio companies, which could adversely impact their financial performance and ability to meet ongoing obligations to the Company. Also, an increase in interest rates available to investors could make investment in our common stock less attractive if we are not able to increase our dividend rate, which could reduce the value of our common stock.

Because we have borrowed money, and may issue preferred stock to finance investments, our net investment income depends, in part, upon the difference between the rate at which we borrow funds or pay dividends on preferred stock and the rate that our investments yield. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In this period of rising interest rates, our cost of funds may increase except to the extent we have issued fixed rate debt or preferred stock, which could reduce our net investment income.

You should also be aware that a change in the general level of interest rates can be expected to lead to a change in the interest rate we receive on many of our debt investments. Accordingly, a change in the interest rate could make it easier for us to meet or exceed the performance threshold and may result in a substantial increase in the amount of Incentive Fees payable to our Advisor with respect to the portion of the Incentive Fee based on income.

Interest rates have risen in recent months, and the risk that they may continue to do so is pronounced.

**Changes relating to the London Interbank Offer Rate ("LIBOR") calculation process, the phase-out of LIBOR and the use of replacement rates for LIBOR may adversely affect the value of our portfolio securities.**

In July 2017, the head of the United Kingdom Financial Conduct Authority announced the desire to phase out the use of LIBOR by the end of 2021. The announcement indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. Since December 31, 2021, all sterling, euro, Swiss franc and Japanese yen LIBOR settings and the 1-week and 2-month U.S. dollar LIBOR settings have ceased to be published or are no longer representative, and after June 30, 2023, the overnight, 1-month, 3-month, 6-month and 12-month U.S. dollar LIBOR settings will cease to be published or will no longer be representative. Various financial industry groups have begun planning for the transition away from LIBOR, but there are challenges to converting certain securities and transactions to a new reference rate (e.g., the Secured Overnight Financing Rate ("SOFR"), which is intended to replace the U.S. dollar LIBOR). Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

As an alternative to LIBOR, the Financial Reporting Council, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions recommended replacing U.S. dollar LIBOR with the Secured Overnight Financing Rate ("SOFR"), a new index calculated by reference to short-term repurchase agreements, backed by Treasury securities. Abandonment of, or modifications to, LIBOR could have adverse impacts on newly issued financial instruments and any of our existing financial instruments which reference LIBOR. Given the inherent differences between LIBOR and SOFR, or any other alternative benchmark rate that may be established, there are many uncertainties regarding a transition from LIBOR, including, but not limited to, the need to amend all contracts with LIBOR as the referenced rate and how this will impact the cost of variable rate debt and certain derivative financial instruments. In addition, SOFR or other replacement rates may fail to gain market acceptance. Any failure of SOFR or alternative reference rates to gain market acceptance could adversely affect the return on, value of and market for securities linked to such rates.

Neither the effect of the LIBOR transition process nor its ultimate success can yet be known. The transition process might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of, new hedges placed against, instruments whose terms currently include LIBOR. While some existing LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate-setting methodology, there may be significant uncertainty regarding the effectiveness of any such alternative methodologies to replicate LIBOR. Not all existing LIBOR-based instruments may have alternative rate-setting provisions and there remains uncertainty regarding the willingness and ability of issuers to add alternative rate-setting provisions in certain existing instruments. Moreover, these alternative rate-setting provisions may not be designed for regular use in an environment where LIBOR ceases to be published and may be an ineffective fallback following the discontinuation of LIBOR. On March 15, 2022, President Biden signed into law the Consolidated Appropriations Act of 2022, which among other things, provides for the use of interest rates based on SOFR in certain contracts currently based on LIBOR and a safe harbor from liability for utilizing SOFR-based interest rates as a replacement for LIBOR. The elimination of LIBOR could have an adverse impact on the market value of and/or transferability of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations.

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**We may not replicate the historical performance of other investment companies and funds with which our investment professionals have been affiliated.**

The 1940 Act imposes numerous constraints on the investment activities of BDCs. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of U.S. private companies or thinly traded public companies (public companies with a market capitalization of less than $250 million), cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. These constraints may hinder our Advisor's ability to take advantage of attractive investment opportunities and to achieve our investment objectives. In addition, the investment philosophy and techniques used by our Advisor may differ from those used by other investment companies and funds advised by our Advisor. Accordingly, we can offer no assurance that we will replicate the historical performance of other investment companies and funds with which our investment professionals have been affiliated, and we caution that our investment returns could be substantially lower than the returns achieved by such other companies.

**We are not managed by BlackRock, but rather one of its subsidiaries and may not replicate the success of that entity or BlackRock.**

Our investment strategies differ from those of BlackRock or its affiliates. As a BDC, we are subject to certain investment restrictions that do not apply to BlackRock. Our performance may be lower or higher than the performance of other entities managed by BlackRock or its affiliates and their past performance is no guarantee of our future results.

**Our business model depends upon the development and maintenance of strong referral relationships with other asset managers and investment banking firms.**

We are substantially dependent on our informal relationships, which we use to help identify and gain access to investment opportunities. If we fail to maintain our relationships with key firms, or if we fail to establish strong referral relationships with other firms or other sources of investment opportunities, we will not be able to grow our portfolio of equity investments and achieve our investment objective. In addition, persons with whom we have informal relationships are not obligated to inform us of investment opportunities, and therefore such relationships may not lead to the origination of equity or other investments. Any loss or diminishment of such relationships could effectively reduce our ability to identify attractive portfolio companies that meet our investment criteria, either for direct equity investments or for investments through private secondary market transactions or other secondary transactions.

**The Advisor's liability is limited under the investment management agreement, and we are required to indemnify the Advisor against certain liabilities, which may lead the Advisor to act in a riskier manner on our behalf than it would when acting for its own account.**

The Advisor has not assumed any responsibility to us other than to render the services described in the investment management agreement, and it will not be responsible for any action of our board of directors in declining to follow the Advisor's advice or recommendations. Pursuant to the investment management agreement, the Advisor and its members and their respective officers, managers, partners, agents, employees, controlling persons and members and any other person or entity affiliated with it will not be liable to us for their acts under the investment management agreement, absent willful misfeasance, bad faith, gross negligence or reckless disregard in the performance of their duties. We have agreed to indemnify, defend and protect the Advisor and its members and their respective officers, managers, partners, agents, employees, controlling persons and members and any other person or entity affiliated with it with respect to all damages, liabilities, costs and expenses resulting from acts of the Advisor not arising out of willful misfeasance, bad faith, gross negligence or reckless disregard in the performance of their duties under the investment and management agreement. These protections may lead the Advisor to act in a riskier manner when acting on our behalf than it would when acting for its own account.

**We may suffer credit losses.**

Investment in middle-market companies is highly speculative and involves a high degree of risk of credit loss, and therefore our securities may not be suitable for someone with a low tolerance for risk. These risks are likely to increase during an economic recession.

**Our use of borrowed funds to make investments exposes us to risks typically associated with leverage.**

An investment in the Company is subject to the risks of leverage to the extent that leverage is employed by the Company. Leverage arises as a consequence of borrowing money. Leverage has the effect of magnifying both gains and losses. The leverage in which the Company may engage will increase returns to stockholders if the investments held by the Company earn a greater return than expected, but will also magnify losses to stockholders if the investments held by the Company fail to earn as much as expected or operate a loss.

Subject to the restrictions on borrowings described herein, the Company may from time to time enter into loan agreements with third parties to provide working capital for the Company. The Company may borrow or use other forms of leverage on a secured or an

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unsecured basis for any purpose, including increasing investment capacity, covering operating expenses, making redemption or dividend payments or for clearance of transactions.

The use of leverage creates increased risk of loss and is considered a speculative investment technique. The use of leverage magnifies the potential gains and losses from an investment and increases the risk of loss of capital. Borrowing money to purchase securities may provide an opportunity for greater capital appreciation, but, at the same time, increases the Company's exposure to capital risk and higher current expenses through interest charges, fees imposed by lenders and transaction costs. To the extent that income derived by the Company from investments purchased with borrowed funds is greater than the cost of borrowing, the Company's income will be greater than if borrowing had not been used. Conversely, if the income from investments purchased from these sources is not sufficient to cover the cost of the leverage, the Company's investment income will be less than if leverage had not been used, and the amount available for ultimate distribution to the holders of our securities will be reduced. The extent to which the gains and losses associated with leveraged investing are increased will generally depend on the degree of leverage employed. The Company may, under some circumstances, be required to dispose of investments under unfavorable market conditions in order to maintain its leverage, thus causing the Company to recognize a loss that might not otherwise have occurred. In the event of a sale of investments upon default under the Company's borrowing arrangements, secured creditors will be contractually entitled to direct such sales and may be expected to do so in their interest, rather than in the interests of the holders of our common stock. Stockholders will incur losses if the proceeds from a sale in any of the foregoing circumstances are insufficient, after payment in full of amounts due and payable on leverage, including administrative expenses, to repay such holder's investments in our common stock. As a result, you could experience a total loss of your investment. Any decrease in the Company's revenue would cause the Company's net income to decline more than it would have had the Company not borrowed funds and could negatively affect the Company's ability to make distributions. The ability to service any debt that the Company has or may have outstanding depends largely on its financial performance and is subject to prevailing economic conditions and competitive pressures.

**We are subject to certain risks from leverage under our credit agreement.**

The Company has entered into the Capital Call Facility in order to finance investments and pay expenses with borrowings in lieu of, or in advance of, calling capital contributions. Such Credit Facility Debt maybe important for the Company's operations because it allows the Advisor to manage cash, minimize capital calls and better manage drawdowns in respect of revolving credit agreements from underlying borrowers.

The Advisor may obtain Credit Facility Debt for one or more Client Accounts and is under no obligation to make such financing available to the Company. Differences in availability and terms of Credit Facility Debt resulting from such factors may affect the performance of the Company relative to other Client Accounts.

As a BDC, the Company may issue "senior securities," including borrowing money from banks or other financial institutions only in amounts such that the Company's asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence or issuance. These requirements limit the amount that the Company may borrow and may unfavorably limit the Company's ability to utilize Credit Facility Debt. If the value of the Company's assets declines, the Company may be unable to satisfy the asset coverage test, which could prohibit the Company from paying distributions. If the Company cannot satisfy the asset coverage test, the Company may be required to sell a portion of its investments and repay a portion of its indebtedness at a time when such sales may be disadvantageous. Accordingly, any failure to satisfy this test could have a material adverse effect on the Company's business, financial condition or results of operations.

**The disposition of our investments may result in contingent liabilities.**

Most of our investments will involve private securities. In connection with the disposition of an investment in private securities, we may be required to make representations about the business and financial affairs of the portfolio company typical of those made in connection with the sale of a business. We may also be required to indemnify the purchasers of such investment to the extent that any such representations turn out to be inaccurate or with respect to certain potential liabilities. These arrangements may result in contingent liabilities that ultimately yield funding obligations that must be satisfied through our return of certain distributions previously made to us. We do not believe contingent liabilities were material at December 31, 2022.

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

We make investments in private companies. A portion of these investments may be subject to legal and other restrictions on resale, transfer, pledge or other disposition or will otherwise be less liquid than publicly traded securities.

The illiquidity of our investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously

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recorded our investments. In addition, we face other restrictions on our ability to liquidate an investment in a business entity to the extent that we or the Advisor has or could be deemed to have material non-public information regarding such business entity.

**A substantial portion of our portfolio investments are recorded at fair value as determined using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors and, as a result, there may be uncertainty regarding the value of our portfolio investments.**

The debt and equity investments that we make for which market quotations are not readily available will be valued at fair value as determined using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors. The Valuation Designee approves in good faith the valuation of such securities. 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 differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. Our net asset value could be adversely affected if determinations regarding the fair value of these investments were materially higher than the values ultimately realized upon the disposal of such investments.

**Our use of borrowed funds to make investments exposes us to risks typically associated with leverage.**

We borrow money and as a result:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our common stock is exposed to incremental risk of loss and a decrease in the value of our investments would have a greater negative impact on the value of our common stock than if we did not use leverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•adverse changes in interest rates could reduce or eliminate the incremental income we make with the proceeds of any leverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such securities are governed by an indenture or other instrument containing covenants restricting our operating flexibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we, and indirectly our stockholders, bear the cost of issuing and paying interest or making distributions on such securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to make distributions on our common stock will be restricted if our asset coverage ratio is not at least 150% and any amounts used to service indebtedness may not be available for such distributions.

**A portion of our distributions to stockholders may include a return of stockholder capital.**

We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution. A portion of such distributions may include a return of stockholder capital. Distributions in excess of our current and accumulated earnings and profits are considered non-taxable distributions and serve to reduce the basis of our shares in the hands of the stockholders rather than being currently taxable, and as a result of the reduction of the basis of our shares, stockholders may incur additional capital gains taxes or may have lower capital losses.

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

In accordance with U.S. GAAP and tax regulations, we include in income certain amounts that we have not yet received in cash, such as PIK interest, which represents contractual interest added to the loan balance and due at the end of the loan term. The increases in loan balances as a result of contracted PIK arrangements are included in income for the period in which such PIK interest was received, which is often in advance of receiving cash payment. We also may be required to include in income certain other amounts that we will not receive in cash. Any warrants that we receive in connection with our debt investments are generally valued as part of the negotiation process with the particular portfolio company. As a result, a portion of the aggregate purchase price for the debt investments and warrants are allocated to the warrants that we receive. This will generally result in "original issue discount," or OID, for tax purposes, which we must recognize as ordinary income, increasing the amounts we are required to distribute to qualify for the federal income tax benefits applicable to RICs. Because such original issue discount income would not be accompanied by cash, we would need to obtain cash from other sources to satisfy such distribution requirements. If we are unable to obtain cash from other sources to satisfy such distribution requirements, we may fail to qualify for favorable tax treatment as a RIC and, thus, could become subject to a corporate-level income tax on all of our income. Other features of the debt instruments that we hold may also cause such instruments to generate original issue discount, resulting in a distribution requirement in excess of current cash received. Similarly, newly enacted tax legislation contains rules that may in certain other circumstances require the recognition of non-cash taxable income or may limit the deductibility of certain of our cash expenses. Since in certain cases we may recognize income before or without receiving cash representing such income or may be subject to limitations on the deductibility of cash expenses, we may have difficulty meeting the requirement to distribute at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. If we

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are unable to meet these distribution requirements, we will not qualify for favorable tax treatment as a RIC or, even if such distribution requirements are satisfied, we may be subject to tax on the amount that is undistributed. Accordingly, we may have to sell some of our assets, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements and avoid tax.

**To the extent OID and PIK interest constitute a portion of our income, we will be exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash representing such income.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investments may include OID instruments and PIK interest arrangements, which represents contractual interest added to a loan balance and due at the end of such loan's term. To the extent OID or PIK interest constitute a portion of our income, we are exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The higher interest rates of OID and PIK instruments reflect the payment deferral and increased credit risk associated with these instruments, and OID and PIK instruments generally represent a significantly higher credit risk than coupon loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Even if the accounting conditions for income accrual are met, the borrower could still default when our actual collection is supposed to occur at the maturity of the obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•OID and PIK instruments may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral. OID and PIK income may also create uncertainty about the source of our cash distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For accounting purposes, any cash distributions to stockholders representing OID and PIK income are not treated as coming from paid-in capital, even if the cash to pay them comes from offering proceeds. As a result, despite the fact that a distribution representing OID and PIK income could be paid out of amounts invested by our stockholders, the 1940 Act does not require that stockholders be given notice of this fact by reporting it as are return of capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•PIK interest has the effect of generating investment income at a compounding rate, thereby further increasing the Incentive Fees payable to the Advisor. Similarly, all things being equal, the deferral associated with PIK interest also decreases the loan-to-value ratio at a compounding rate.

**Because we are required to distribute substantially all of our net investment income and net realized capital gains to our stockholders, we will continue to need additional capital to finance our growth.**

We have elected to be treated for federal income tax purposes as a RIC under Subchapter M of the Code. If we can meet certain requirements, including source of income, asset diversification and distribution requirements, and if we continue to qualify as a BDC, we will continue to qualify to be a RIC under the Code and will not have to pay corporate-level taxes on income we distribute to our stockholders, allowing us to substantially reduce or eliminate our corporate-level tax liability. As a BDC, we are generally required to meet a coverage ratio of total assets to total senior securities, which includes all of our borrowings and any preferred stock we may issue in the future, of at least 150%. This requirement limits the amount that we may borrow. Because we will continue to need capital to grow our investment portfolio, this limitation may prevent us from incurring debt and require us to raise additional equity at a time when it may be disadvantageous to do so. We cannot assure you that debt and equity financing will be available to us on favorable terms, if at all, and debt financings may be restricted by the terms of any of our outstanding borrowings. In addition, as a BDC, we are generally not permitted to issue equity securities priced below net asset value without stockholder approval. If additional funds are not available to us, we could be forced to curtail or cease new lending and investment activities, and our net asset value and profitability could decline.

**Any unrealized losses we experience on our investment portfolio may be an indication of future realized losses, which could reduce our income available for distribution.**

Decreases in the market values or fair values of our investments will be recorded as unrealized depreciation. Any unrealized losses in our investment portfolio could be an indication of a portfolio company's inability to meet its repayment obligations to us with respect to the affected investments. This could result in realized losses in the future and ultimately in reductions of our income available for distribution in future periods.

**Our Advisor and its affiliates and employees may have certain conflicts of interest.**

As a global provider of investment management, risk management and advisory services to institutional and retail clients, BlackRock, the Advisor and their respective affiliates (for purposes of this discussion of potential conflicts, the "BlackRock Entities"), engage in a broad spectrum of activities, including sponsoring and managing a variety of public and private investment funds, funds of funds and separate accounts across fixed income, liquidity, equity, alternative investment and real estate strategies; providing financial

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advisory services; providing technology infrastructure and analytics under the BlackRock Solutions® brand and engaging in certain broker-dealer activities and other activities. Although the relationships and activities of the BlackRock Entities should help enable these entities to offer attractive opportunities and services to the Company, such relationships and activities create certain inherent actual and potential conflicts of interest. In the ordinary course of business, the BlackRock Entities engage in activities where their interests or the interests of their clients may conflict with the interests of the Company, certain investors or a group of investors, or the Company's investments. The following discussion enumerates certain potential and actual conflicts of interest.

Allocation of Investment Opportunities. The BlackRock Entities manage and advise numerous accounts for clients around the world, such as registered and unregistered funds and owners of separately managed accounts (collectively, "Client Accounts"). Client Accounts include funds and accounts in which the BlackRock Entities or their personnel have an interest ("BlackRock Accounts"). Certain of these Client Accounts have investment objectives, and utilize investment strategies, that are similar to the Company's. As a result, certain investments may be appropriate for the Company and also for other Client Accounts. The BlackRock Entities' allocation of investment opportunities among various Client Accounts presents inherent potential and actual conflicts of interest, particularly where an investment opportunity is limited. These potential conflicts are exacerbated in situations where BlackRock is entitled to higher fees and incentive compensation from certain Client Accounts than from other Client Accounts (including the Company), where the portfolio managers making an allocation decision are entitled to an incentive fee, carried interest or other similar compensation from such other Client Accounts, or where there are differences in proprietary investments in the Company and other Client Accounts. The prospect of achieving higher compensation or greater investment return from another investment vehicle or separate account than from the Company provides incentives for the Advisor or other BlackRock Entities to favor the other investment vehicle or separate account over the Company when, for example, allocating investment opportunities that the Advisor believes could result in favorable performance. It is the policy of BlackRock not to make decisions based on the foregoing interests or greater fees or compensation.

Any person that owns, directly or indirectly, 5% or more of our outstanding voting securities or is managed by the Advisor will generally be an affiliate of the Company for purposes of the 1940 Act and the Company is generally prohibited from participating in certain transactions such as co-investing with, or buying or selling any security from or to, such affiliate, absent the prior approval of the Independent Directors and, in some cases, of the SEC. However, the Advisor and the funds managed by the Advisor have received an order providing an exemption from certain SEC regulations prohibiting transactions with affiliates (the "Order"). The Order requires that certain procedures be followed prior to making an investment subject to the Order and such procedures could in certain circumstances adversely affect the price paid or received by the Company or the availability or size of the position purchased or sold by the Company. The Advisor may also face conflicts of interest in making investments pursuant to the Order.

The 1940 Act also prohibits certain "joint" transactions with certain of the Company's affiliates, which could include investments in the same portfolio company (whether at the same or different times), without prior approval of the Independent Directors and, in some cases, of the SEC. The Company is prohibited from buying or selling any security from or to any person who owns more than 25% of the Company's voting securities and from or to certain of that person's affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC (other than certain limited situations pursuant to current regulatory guidance). The analysis of whether a particular transaction constitutes a joint transaction requires a review of the relevant facts and circumstances relating to the particular transaction. Similar restrictions limit the Company's ability to transact business with its officers or directors or their affiliates.

To address actual and potential conflicts associated with allocation of investments, BlackRock has developed an investment allocation policy (the "Investment Allocation Policy") and related guidelines. In addition, certain BlackRock Entities and business units have supplemental allocation policies for making allocation decisions among Client Accounts managed by such BlackRock Entities (together with the Investment Allocation Policy and related guidelines, the "Allocation Policy"). The Allocation Policy is intended to ensure that investment opportunities are allocated on a fair and equitable basis among Client Accounts over time, taking into account various factors including the Client Account's investment objective, guidelines and restrictions and other portfolio construction considerations; available capital and liquidity needs; tax, regulatory and contractual considerations; risk or investment concentration parameters; supply or demand for a security at a given price level; size of available investment; unfunded capital commitments or cash availability and liquidity requirements; leverage limitations; regulatory restrictions; contractual restrictions (including with other clients); minimum investment size; relative size; and such other factors as may be relevant to a particular transaction or Client Account. The BlackRock Entities reserve the right to allocate investment opportunities appropriate for the investment objectives of the Company and other Client Accounts in any other manner deemed fair and equitable by the BlackRock Entities consistent with the Allocation Policy, the Order and applicable law. The application of the Allocation Policy, the Order and the foregoing considerations may result in a particular Client Account, including the Company, not receiving an allocation of an investment opportunity that has been allocated to other Client Accounts following the same or similar strategy, or receiving a smaller allocation than other Client Accounts or an allocation on an other than pro rata basis. Furthermore, as the investment programs of the Company and the other applicable Client Accounts change and develop over time, additional issues and considerations may affect the Allocation Policy and the expectations of the BlackRock Entities with respect to the allocation of investment opportunities to the Company and other Client Accounts. BlackRock

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and the Advisor reserve the right to change the Allocation Policy and guidelines relating thereto from time to time without the consent of or notice to stockholders, subject to the disclosure requirements of applicable law.

As a general matter, it is expected the Company will participate in investments deemed appropriate for the Company's strategy and either sourced by the investment personnel directly responsible for managing the Company (though investments sourced by such personnel may also be allocated to other Client Accounts that may be managed by other investment teams) or made available for investment by the Company pursuant to the terms of the Order.

Allocation of Expenses. Side-by-side management by the BlackRock Entities of the Company and Client Accounts raises other potential and actual conflicts of interest, including those associated with allocating expenses attributable to the Company and one or more other Client Accounts. The Advisor and its affiliates will attempt to make such allocations on a basis that they consider to be fair and equitable to the Company under the circumstances over time and considering such factors as it deems relevant. The allocations of such expenses may not be proportional, and any such determinations involve inherent matters of discretion, e.g., in determining whether to allocate pro rata based on number of Client Accounts or proportionately in accordance with asset size, or in certain circumstances determining whether a particular expense has a greater benefit to the Company, other Client Accounts or the Advisor and/or its affiliates.

Activities of Other Client Accounts. The BlackRock Entities will, from time to time, be actively engaged in transactions on behalf of other Client Accounts in the same investments, securities, derivatives and other instruments in which the Company will directly or indirectly invest. Trading for certain other Client Accounts is carried out without reference to positions held directly or indirectly by the Company and may have an effect on the value or liquidity of the positions so held or may result in another Client Account having an interest in an issuer adverse to that of the Company.

Under certain circumstances and subject to the Order and applicable law, the Company may invest directly or indirectly in a transaction in which one or more other Client Accounts are expected, or seek, to participate or already have made, or concurrently will make or seek to make, an investment. The Company and the other Client Accounts may have conflicting interests and objectives in connection with such investments, including with respect to views on the operations or activities of the project or company involved, the targeted returns from the investment and the timeframe for, and method of, exiting the investment. For example, the Advisor's decisions on behalf of other Client Accounts to sell, redeem from or otherwise liquidate a security in which the Company is invested may adversely affect the Company, including by causing such investment to be less liquid or more concentrated, or by causing the Company to no longer participate in a controlling position in the investment or to lose the benefit of certain negotiated terms, including, without limitation, fee discounts. Conflicts will also arise in cases where the Company, directly or indirectly, and other Client Accounts invest in different parts of an issuer's capital structure, including circumstances in which one or more Client Accounts may own private securities or obligations of an issuer and other Client Accounts may own public securities of the same issuer. If an issuer in which the Company, directly or indirectly, and one or more other Client Accounts hold different classes of securities (or other assets, instruments or obligations issued by such issuer) encounters financial problems, decisions over the terms of any workout will raise potential conflicts of interests (including, for example, conflicts regarding the terms of recapitalizations and proposed waivers, amendments or enforcement of debt covenants). As a result, one or more Client Accounts may pursue or enforce rights with respect to a particular issuer in which the Company has directly or indirectly invested, and those activities may have an adverse effect on the Company. Because of the different legal rights associated with debt and equity of the same portfolio company, BlackRock expects to face a potential conflict of interest in respect of the advice given to, and the actions taken on behalf of, the Company versus another Client Account (e.g., the terms of debt instruments, the enforcement of covenants, the terms of recapitalizations and the resolution of workouts or bankruptcies). For example, if the Company holds debt securities of an issuer and a Client Account directly or indirectly holds equity securities of the same issuer, then, if the issuer experiences financial or operational challenges, the Company may seek a liquidation of the issuer in which it may be paid in full, whereas the Client Account, as a direct or indirect equity holder, might prefer a reorganization that holds the potential to create value for the equity holders. Similarly, if additional capital is necessary as a result of financial or other difficulties, or to finance growth of other opportunities, subject to the Order and applicable law and regulation, a Client Account may not provide such additional capital and the Company may do so, or vice versa. In the event of an insolvency, bankruptcy or similar proceeding of an issuer, the Company may be limited (by applicable law, courts or otherwise) in the positions or actions it may be permitted to take due to other interests held or actions or positions taken by other Client Accounts. In negotiating the terms and conditions of any such investments, or any subsequent amendments or waivers, the Advisor and the other BlackRock Entities may find that their own interests, the interests of the Company and/or the interests of one or more other Client Accounts could conflict. Any of the foregoing conflicts of interest will be discussed and resolved on a case-by-case basis. The resolution of such conflicts will take into consideration the interests of the relevant parties, the circumstances giving rise to the conflict, the Order to the extent applicable and applicable law. Stockholders should be aware that conflicts will not necessarily be resolved in favor of the Company and that the Company could be adversely affected by the actions taken by BlackRock Entities on behalf of Client Accounts.

In order to avoid or reduce the conflicts that may arise in cases where the Company, directly or indirectly, and other Client Accounts invest in different parts of an issuer's capital structure, or for other reasons, the Company may choose not to invest in issuers in which other Client Accounts hold an existing investment, even if the Advisor believes such investment opportunity to be attractive

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and otherwise appropriate for the Company and is permitted under applicable law and regulation, which may adversely affect the performance of the Company.

Other transactions by one or more Client Accounts also may have the effect of diluting the values or prices of investments held directly or indirectly by the Company or otherwise disadvantaging the Company. This may occur when portfolio decisions regarding the Company are based on research or other information that is also used to support portfolio decisions for other Client Accounts. When a BlackRock Entity implements a portfolio decision or strategy on behalf of a Client Account other than the Company ahead of, or contemporaneously with, similar portfolio decisions or strategies for the Company (whether or not the portfolio decisions emanate from the same research analysis or other information), market impact, liquidity constraints or other factors could result in the Company receiving less favorable investment results, and the cost of implementing such portfolio decisions or strategies for the Company could increase, or the Company could otherwise be disadvantaged.

Additionally, if the Company makes an investment in a portfolio company in conjunction with an investment made by another Client Account, the Company may not invest through the same investment vehicles, have the same access to credit or employ the same hedging or investment strategies as such other Client Account. This likely will result in differences in investment cost, investment terms, leverage and associated expenses between the Company and any other Client Account. There can be no assurance that the Company and the other Client Accounts will exit the investment at the same time or on the same terms, and there can be no assurance that the Company's return on such an investment will be the same as the returns achieved by any other Client Accounts participating in the transactions. Given the nature of these conflicts, there can be no assurance that the resolution of these conflicts will be beneficial to the Company.

The BlackRock Entities may also, in certain circumstances and subject to the Order and applicable law and regulation, pursue or enforce rights or take other actions with respect to a particular issuer or investment jointly on behalf of the Company and other Client Accounts. In such circumstances, the Company may be adversely impacted by the other Client Accounts' activities, and transactions for the Company may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the case had the other Client Accounts not pursued a particular course of action with respect to the issuer or investment. For example, one or more Client Accounts may dispose of or make an in kind distribution of its portion of an investment that is also held by the Company and other Client Accounts, and such action may adversely affect the Company and such other Client Accounts that continue to hold such investment.

Conflicts may also arise because portfolio decisions made by the Advisor on behalf of the Company may benefit other BlackRock Entities or Client Accounts, including BlackRock Accounts. For example, subject to the Order and applicable law and regulation, the Company may invest directly or indirectly in the securities, bank loans or other obligations of issuers in which a Client Account has an equity, debt or other interest, or vice versa. In certain circumstances, the Advisor may be incentivized not to undertake certain actions on behalf of the Company in connection with such investments, in view of a BlackRock Entity's or Client Account's involvement with the relevant issuer or investment. Further, the Company may also engage in investment transactions that result in other Client Accounts being relieved of obligations or otherwise divesting of investments that the Company also holds or which cause the Company to have to divest certain investments. The purchase, holding and sale of investments by the Company may enhance the profitability of another Client Account's own investments in and activities with respect to such investments.

Without limiting the generality of the foregoing, the Company may invest, directly or indirectly, in equity of investments or issuers affiliated with the BlackRock Entities or in which a BlackRock Entity or a Client Account has a direct or indirect debt or other interest, or vice versa, and may acquire such equity or debt either directly or indirectly through public or private acquisitions. Such investments may benefit the BlackRock Entities or Client Accounts. In addition, the Advisor may be incentivized not to undertake certain actions on behalf of the Company in connection with such investments, in view of a BlackRock Entity's or Client Account's involvement with the relevant issuer or investment.

Moreover, the Advisor's investment professionals, its senior management and employees serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as the Company. Accordingly, these individuals may have obligations to investors in those entities or funds, the fulfillment of which might not be in the best interests of the Company or stockholders. In addition, certain of the personnel employed by the Advisor or focused on the Company's business may change in ways that are detrimental to the Company's business.

Transactions Between Client Accounts. Each of the BlackRock Entities and the Advisor reserve the right to conduct cross trades between the Company and other Client Accounts in accordance with applicable legal and regulatory requirements. The Advisor may cause the Company to purchase securities or other assets from or sell securities or other assets to, or engage in other transactions with, other Client Accounts or vehicles when the Advisor believes such transactions are appropriate and in the participants' best interest, subject to applicable law and regulation. The Company may enter into "agency cross transactions," in which a BlackRock Entity may act as broker for the Company and for the other party to the transaction, to the extent permitted under applicable law and regulation and

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the relevant Client Account governing documents. In such cases, the Advisor and such other Client Accounts or BlackRock Entities, as applicable, may have a potentially conflicting division of loyalties and responsibilities regarding both parties to the transaction. To the extent that any provision of Section 11(a) of the Exchange Act, or any of the rules promulgated thereunder, is applicable to any transactions effected by the Advisor, such transactions will be affected in accordance with the requirements of such provisions and rules.

Proxy Voting. The Board of Directors has delegated to the Advisor discretion with respect to voting and consent rights of the assets of the Company. Consistent with applicable rules under the Investment Advisers Act of 1940, as amended (the "Advisers Act"), BlackRock has adopted and implemented written proxy voting policies and procedures with respect to individual securities held by the Company that are reasonably designed: (i) to ensure that proxies are voted, consistent with its fiduciary obligations, in the best interests of Client Accounts under the circumstances over time; and (ii) to prevent conflicts of interest from influencing proxy voting decisions made on behalf of clients. Nevertheless, when votes are cast in accordance with BlackRock's proxy voting policy and in a manner that BlackRock believes to be consistent with its fiduciary obligations, actual proxy voting decisions made on behalf of one Client Account may have the effect of favoring or harming the interests of other Client Accounts, including the Company. Stockholders may receive a copy of BlackRock's proxy voting policy, upon request, and may also obtain a copy at: http://www.blackrock.com/corporate/en-us/about-us/responsible-investment/responsible-investment-reports.

Investment Terms of Other Client Accounts. The investment terms offered to other Client Accounts or to investors in other Client Accounts with similar investment objectives as the Company may be different than those applicable to our stockholders and may create conflicts. In particular, with respect to investors in other Client Accounts that are managed as dedicated funds or with respect to other Client Accounts investing through separate accounts with similar investment objectives to the Company, information sharing may, to the extent permitted under applicable law and regulation, be more extensive, detailed and timely as compared to information available to our stockholders, and the other Client Accounts' liquidity may not be subject to the restrictions that apply to our stockholders.

Management of the Company. In connection with the management of the Company, the Board of Directors and/or the Advisor will have the right to make certain determinations on behalf of the Company, in its discretion. Any such determinations may affect stockholders differently and some stockholders may be adversely affected by such determinations by the Board of Directors or Advisor. Stockholders may be situated differently in a number of ways, including being resident of, or organized in, various jurisdictions, being subject to different tax rules or regulatory structures and/or having different internally- or externally-imposed investment policies, restrictions or guidelines. As a result, conflicts of interest may arise in connection with decisions made by the Board of Directors or the Advisor that may be more beneficial for certain stockholders. In making determinations on behalf of the Company, including in structuring and completing investments, the Advisor intends to consider the investment and tax objectives of the Company and the stockholders as a whole, not the investment, tax or other objectives of any stockholder individually.

Subject to applicable law, including the 1940 Act, and the terms of the applicable contracts with the Company, BlackRock Entities may from time to time, and without notice to the Company or stockholders, insource or outsource to third-parties, including parties which are affiliated with BlackRock, certain processes or functions in connection with a variety of services that they provide to the Company in their administrative or other capacities. Such in-sourcing or outsourcing may give rise to potential conflicts of interest.

Limited Access to Information; Information Advantage of Certain BlackRock Clients. As a result of receiving client reports, service on a Client Account's advisory board, affiliation with the Advisor or otherwise, one or more BlackRock clients may have access to different information regarding the BlackRock Entities' transactions, strategies or views, and may act on such information in accounts not controlled by the BlackRock Entities, which may have a material adverse effect on the performance of the Company. The Company and its investments may also be adversely affected by market movements or by decreases in the pool of available securities or liquidity arising from purchases and sales by, as well as increases of capital in, and withdrawals of capital from, other Client Accounts and other accounts of BlackRock clients not controlled by BlackRock. These effects can be more pronounced in respect of investments with limited capacity and in thinly traded securities and less liquid markets.

Furthermore, our stockholders' rights to information regarding the Advisor or the Company generally will be limited to applicable reporting obligations and information requirements under the Exchange Act and applicable state law. It is anticipated that the Advisor and its affiliates will obtain certain types of material information from or relating to the Company's investments that will not be disclosed to stockholders because such disclosure is prohibited, including as a result of contractual, legal or similar obligations outside of BlackRock's control. Such limitations on the disclosure of such information may have adverse consequences for stockholders in a variety of circumstances and may make it difficult for a stockholder to monitor the Advisor and its performance.

Advisor Decisions May Benefit BlackRock Entities and BlackRock Accounts. BlackRock Entities may derive ancillary benefits from certain decisions made on behalf of the Company. While the Advisor will make decisions for the Company in accordance with its obligations to manage the Company appropriately, the fees, allocations, compensation and other benefits to the BlackRock Entities (including benefits relating to business relationships of the BlackRock Entities) may be greater as a result of certain portfolio, investment, service provider or other decisions made by the Advisor for the Company than they would have been had other decisions been made

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which also might have been appropriate for the Company. In addition, BlackRock Entities may invest in Client Accounts and therefore may indirectly derive ancillary benefits from certain decisions made by the Advisor. The Advisor may also make decisions and exercise discretion with respect to the Company that could benefit BlackRock Entities that have invested in the Company.

Temporary Investments in Cash Management Products. Subject to applicable law, the Company may invest, on a temporary basis, in short-term, high-grade assets or other cash management products, including SEC-registered investment funds (open-end or closed-end) or unregistered funds, including any such funds that are sponsored, managed or serviced by advisory BlackRock Entities. In connection with any of these investments, the Company will bear all fees pertaining to the investment, including advisory, administrative or 12b-1 fees, and no portion of any fees otherwise payable by the Company will be offset against fees payable in accordance with any of these investments (i.e., there could be "double fees" involved in making any of these investments which would not arise in connection with a stockholder's direct investment in such money market or liquidity funds, because a BlackRock Entity could receive fees with respect to both the management of the Company, on one hand, and such cash management products, on the other). In these circumstances, as well as in other circumstances in which any BlackRock Entities receive any fees or other compensation in any form relating to the provision of services, subject to the Company's Governing Documents, no accounting, repayment to the Company or offset of the Advisory Fee will be required.

Management Responsibilities. The employees and directors of the Advisor or its affiliates are not under any obligation to devote all of their professional time to the affairs of the Company, but will devote such time and attention to the affairs of the Company as BlackRock determines in its discretion is necessary to carry out the operations of the Company effectively. Employees and directors of the Advisor engage in other activities unrelated to the affairs of the Company, including managing or advising other Client Accounts, which presents potential conflicts in allocating management time, services and functions among the Company and other Client Accounts. These potential conflicts will be exacerbated in situations where employees may be entitled to greater incentive compensation or other remuneration from certain Client Accounts than from other Client Accounts (including the Company).

The Advisor may, subject to applicable law, utilize the personnel or services of its affiliates in a variety of ways to make available to the Company BlackRock's global capabilities. Although the Advisor believes this practice generally is in the best interests of its clients, it is possible that conflicts with respect to allocation of investment opportunities, portfolio execution, client servicing or other matters may arise due to differences in regulatory requirements in various jurisdictions, time differences or other reasons. The Advisor will seek to ameliorate any conflicts that arise and may determine not to utilize the personnel or services of a particular affiliate in circumstances where it believes the potential conflict outweighs the potential benefits.

Investments by Directors, Officers and Employees of BlackRock Entities. The directors, officers and employees of BlackRock Entities are permitted to buy and sell public or private securities, commingled vehicles or other investments held by the Company for their own accounts, or accounts of their family members and in which such BlackRock Entity personnel may have a pecuniary interest, including through accounts (or investments in funds) managed by BlackRock Entities, in accordance with BlackRock's personal trading policies. As a result of differing trading and investment strategies or constraints, positions taken by BlackRock Entity directors, officers, and employees may be the same as or different from, or made contemporaneously or at different times than, positions taken for the Company.

Such persons and/or investment vehicles they manage also may invest in companies in the same industries as companies in which the Company expects to invest, and may compete with the Company for investment opportunities, and their investments may compete with the Company's investments.

In addition, BlackRock personnel may serve on the boards of directors of companies in the same industries as companies in which the Company expects to invest, which can give rise to conflicting obligations and interests.

As these situations may involve potential conflicts of interest, BlackRock has adopted policies and procedures relating to personal securities transactions, insider trading and other ethical considerations. These policies and procedures are intended to identify and reduce actual conflicts of interest with clients and to resolve such conflicts appropriately if they do occur.

Issues Relating to the Valuation of Assets. While securities and other property held by the Company generally will be valued by reference to an independent third-party source, in certain circumstances holdings may be valued at fair value based upon the principles and methods of valuation set forth in policies adopted by the Board of Directors. Moreover, a significant portion of the assets in which the Company may directly or indirectly invest may not have a readily ascertainable market value and, subject to applicable law, may be valued at fair value based upon the principles and methods of valuation set forth in policies adopted by the Board of Directors.

Potential Restrictions on the Advisor's Activities on Behalf of the Company. From time to time, the Advisor expects to be restricted from purchasing or selling securities or taking other actions on behalf of the Company because of regulatory and legal requirements

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applicable to BlackRock Entities, other Client Accounts and/or the Advisor's internal policies designed to comply with or limit the applicability of, or which otherwise relate to, such requirements. An investment fund not advised by BlackRock Entities may not be subject to the same considerations. There may be periods when the Advisor (on behalf of the Company) may not initiate or recommend certain types of transactions, may limit or delay purchases, may sell or redeem existing investments, forego transactions or other investment opportunities, restrict or limit the exercise of rights (including voting rights), or may otherwise restrict or limit their advice with respect to securities or instruments issued by or related to issuers for which BlackRock Entities are performing advisory or other services. Such policies may restrict the Company's activities more than required by applicable law. For example, when BlackRock Entities are engaged to provide advisory or risk management services for an issuer, the Company may be prohibited from or limited in purchasing or selling interests of that issuer, particularly in cases where BlackRock Entities have or may obtain material non-public information about the issuer. Similar prohibitions or limitations could also arise if: (i) BlackRock Entity personnel serve as directors or officers of issuers, the securities or other interests of which the Company wishes to purchase or sell, (ii) the Advisor on behalf of the Company participates in a transaction (including a controlled acquisition of a U.S. public company) that results in the requirement to restrict all purchases, sales and voting of equity securities of such target issuer, or (iii) regulations, including portfolio affiliation rules or stock exchange rules, prohibit participation in offerings by an issuer when other Client Accounts have prior holdings of such issuer's securities or desire to participate in such a public offering, or where other Client Accounts have or may have short positions in such issuer's securities. However, where permitted by applicable law, and where consistent with the BlackRock Entities' policies and procedures, the BlackRock Entities may, but are not obligated to, seek to avoid such prohibitions or limitations (such as through the implementation of appropriate information barriers), and in such cases, the Advisor on behalf of the Company may purchase or sell securities or instruments that are issued by such issuers. In addition, certain activities and actions may also be considered to result in reputational risk or disadvantage for the management of the Company and/or for the Advisor and its affiliates, and the Advisor may decline or limit an investment opportunity or dispose of an existing investment as a result.

In addition, in regulated industries and in certain markets, and in certain futures and derivative transactions, there are limits on the aggregate amount of investment by affiliated investors that may not be exceeded without a regulatory filing, the grant of a license or other regulatory or corporate consent. For example, the U.S. Commodity Futures Trading Commission ("CFTC"), the U.S. commodities exchanges and certain non-U.S. exchanges have established limits referred to as "speculative position limits" or "position limits" on the maximum long or short (or, for some commodities, the gross) positions which any person or group of persons may own, hold or control in certain futures or options on futures contracts, and such rules generally require aggregation of the positions owned, held or controlled by related entities. Any such limits may prevent the Company from acquiring positions that might otherwise have been desirable or profitable. Under certain circumstances, the Advisor may restrict a purchase or sale of securities, derivative instruments or other assets on behalf of Client Accounts in anticipation of a future conflict that may arise if such purchase or sale would be made. Any such determination will take into consideration the interests of the relevant Client Accounts, the circumstances that would give rise to the future conflict and applicable law. Such determination will be made on a case by case basis.

Other Services and Activities of the BlackRock Entities. The BlackRock Entities (including the Advisor) will, from time to time, provide financial, consulting and other services to, and receive compensation from, an entity which is the issuer of a security or other investment held by the Company, counterparties to transactions with the Company or third parties that also provide services to the Company. In addition, the BlackRock Entities (including the Advisor) may purchase property (including securities) from, sell property (including securities) or lend funds to, or otherwise deal with, any entity which is the issuer of a security held by the Company, counterparties to transactions with the Company or third parties that also provide services to the Company. It is also likely that the Company will have multiple business relationships with and will invest in, engage in transactions with, make voting decisions with respect to, or obtain services from entities for which BlackRock Entities perform or seek to perform certain financial services. Conflicts are expected to arise in connection with the foregoing.

The BlackRock Entities may derive ancillary benefits from providing investment advisory, administrative and other services to the Company, and providing such services to the Company may enhance the BlackRock Entities' relationships with various parties, facilitate additional business development, and enable the BlackRock Entities to obtain additional business and generate additional revenue.

Potential Restrictions and Issues Relating to Information Held by BlackRock. The Advisor may not have access to information and personnel of all BlackRock Entities, including as a result of informational barriers constructed between different investment teams and groups within BlackRock focusing on alternative investments and otherwise. Therefore, the Advisor may not be able to manage the Company with the benefit of information held by one or more other investment teams and groups within the BlackRock Entities. However, although it is under no obligation to do so, if it is permitted to do so, the Advisor may consult with personnel on other investment teams and in other groups within BlackRock, or with persons unaffiliated with BlackRock, or may form investment policy committees composed of such personnel, and in certain circumstances, personnel of affiliates of the Advisor may have input into, or make determinations regarding, portfolio management transactions for the Company, and may receive information regarding the Advisor's proposed investment activities for the Company that generally is not available to the public. There will be no obligation on the part of such persons to make available for use by the Company any information or strategies known to them or developed in

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connection with their own client, proprietary or other activities. In addition, BlackRock will be under no obligation to make available any research or analysis prior to its public dissemination.

The Advisor makes decisions for the Company based on the Company's investment program. The Advisor from time to time may have access to certain fundamental analysis, research and proprietary technical models developed by BlackRock Entities and their personnel. There will be no obligation on the part of the BlackRock Entities to make available for use by the Company, or to effect transactions on behalf of the Company on the basis of, any such information, strategies, analyses or models known to them or developed in connection with their own proprietary or other activities. In certain cases, such personnel will be prohibited from disclosing or using such information for their own benefit or for the benefit of any other person, including the Company and other Client Accounts. In other cases, fundamental analyses, research and proprietary models developed internally may be used by various BlackRock Entities and their personnel on behalf of different Client Accounts, which could result in purchase or sale transactions in the same security at different times (and could potentially result in certain transactions being made by one portfolio manager on behalf of certain Client Accounts before similar transactions are made by a different portfolio manager on behalf of other Client Accounts), or could also result in different purchase and sale transactions being made with respect to the same security. The Advisor may also effect transactions for the Company that differ from fundamental analysis, research or proprietary models issued by the BlackRock Entities or by the Advisor itself in various contexts. The foregoing transactions may negatively impact the Company and its direct and indirect investments through market movements or by decreasing the pool of available securities or liquidity, which effects can be more pronounced in thinly traded securities and less liquid markets.

The BlackRock Entities and different investment teams and groups within the Advisor have no obligation to seek information or to make available to or share with the Company any third-party manager with which the Company invests any information, research, investment strategies, opportunities or ideas known to BlackRock Entity personnel or developed or used in connection with other clients or activities. The BlackRock Entities and different investment teams and groups within the Advisor may compete with the Company or any third-party manager with which the Company invests for appropriate investment opportunities on behalf of their other Client Accounts. The results of the investment activities of the Company may differ materially from the results achieved by BlackRock Entities for other Client Accounts. BlackRock Entities may give advice and take action with respect to other Client Accounts that may compete or conflict with the advice the Advisor may give to the Company, including with respect to their view of the operations or activities of an investment, the return of an investment, the timing or nature of action relating to an investment or the method of exiting an investment.

BlackRock Entities may restrict transactions for themselves, but not for the Company, or vice versa. BlackRock Entities and certain of their personnel, including the Advisor's personnel or other BlackRock Entity personnel advising or otherwise providing services to the Company, may be in possession of information not available to all BlackRock Entity personnel, and such personnel may act on the basis of such information in ways that have adverse effects on the Company. The Company could sustain losses during periods in which BlackRock Entities and other Client Accounts achieve significant profits.

Material, Non-Public Information. The Advisor and its personnel may not trade for the Company or other Client Accounts or for their own benefit or recommend trading in financial instruments of a company while they are in possession of material, non-public or price sensitive information ("Inside Information") concerning such company, or disclose such Inside Information to any person not entitled to receive it. The BlackRock Entities (including the Advisor) may have access to Inside Information. The Advisor has instituted an internal information barrier policy designed to prevent securities laws violations based on access to Inside Information. Accordingly, there may be certain cases where the Advisor may be restricted from effecting purchases and/or sales of interests in securities or other financial instruments, or entering into certain transactions or exercising certain rights under such transactions on behalf of the Company and/or the other Client Accounts. There can be no assurance that the Advisor will not receive Inside Information and that such restrictions will not occur. At times, the Advisor, in an effort to avoid restriction for the Company or the other Client Accounts, may elect not to receive Inside Information, which may be relevant to the Company's portfolio, that other market participants are eligible to receive or have received and could affect decisions that would have otherwise been made.

Any partner, officer or employee of the BlackRock Entities may serve as an officer, director, advisor or in comparable management functions for the investments of other Client Accounts, and any such person may obtain Inside Information in connection therewith, or in connection with such partner's, officer's or employee's other activities in the financial markets. In an effort to manage possible risks arising from the internal sharing of material non-public information, BlackRock maintains a list of restricted securities with respect to which it has access to material non-public information and in which Client Accounts are restricted from trading. If partners, officers or employees of BlackRock obtain such material non-public information about a portfolio company which is an investment of a Client Account, the Company may be prohibited by law, policy or contract, for a period of time, from (i) unwinding a position in such company, (ii) establishing an initial position or taking any greater position in such company and/or (iii) pursuing other investment opportunities, which could impact the returns to the Company. In addition, in certain circumstances, particularly during the liquidation of a Client Account, the Company may be prohibited from trading a position that it holds, directly or indirectly, in the Client Account because BlackRock determines that one or more partners, officers or employees of BlackRock holds material non-public information with respect to one or more remaining positions held by the Client Account.

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Transactions with Certain Stockholders. The Company is permitted to enter into transactions with certain stockholders, subject to applicable law. For example, the Advisor may be presented with opportunities to receive financing and/or other services in connection with the Company's operations and/or the Company's investments from certain stockholders or their affiliates that are engaged in lending or related business, which subjects the Advisor to conflicts of interest.

The Company's Use of Investment Consultants and BlackRock's Relationship with Investment Consultants. Stockholders may work with pension or other institutional investment consultants (collectively, "Investment Consultants"). Investment Consultants provide a wide array of services to pension plans and other institutions, including assisting in the selection and monitoring of investment advisers such as the Advisor. From time to time, Investment Consultants who recommend the Advisor to, and provide oversight of the Advisor for, stockholders may also provide services to or purchase services from the BlackRock Entities. For example, the BlackRock Entities purchase certain index and performance-related databases and human resources-related information from Investment Consultants and their affiliates. The BlackRock Entities also utilize brokerage execution services of Investment Consultants or their affiliates, and BlackRock Entities personnel may attend conferences sponsored by Investment Consultants. Conversely, from time to time, the BlackRock Entities may be hired by Investment Consultants and their affiliates to provide investment management and/or risk management services, creating possible conflicts of interest.

Other Relationships with BlackRock Entities, Clients and Market Participants. The BlackRock Entities have developed, and will in the future develop, relationships with (or may invest in) a significant number of clients and other market participants (e.g., financial institutions, service providers, managers of investment funds, banks, brokers, advisors, joint venturers, consultants, finders (including executive finders), executives, attorneys, accountants, institutional investors, family offices, lenders, current and former employees, and current and former portfolio investment executives, as well as certain family members or close contacts of these persons), including those that may hold or may have held investments similar to the investments intended to be made by the Company, that may themselves represent appropriate investment opportunities for the Company, or that may compete with the Company for investment opportunities. Furthermore, the Advisor generally exercises its discretion to recommend to the Company or to an investment thereof that it contract for services with such clients and market participants, and/or with other BlackRock Entities. It is difficult to predict the circumstances under which these relationships could become material conflicts for the Company, but it is possible that as a result of such relationships (or agreements with other Client Accounts) the Advisor may refrain from making all or a portion of any investment or a disposition on behalf of the Company, which may materially adversely affect the performance of the Company. Certain of these persons or entities will invest (or will be affiliated with an investor) in, engage in transactions with and/or provide services (including services at reduced rates) to, the BlackRock Entities and/or Client Accounts and/or their affiliates. BlackRock expects to be subject to a potential conflict of interest with the Company in recommending the retention or continuation of a third-party service provider to such Company or a portfolio investment if such recommendation, for example, is motivated by a belief that the service provider or its affiliate(s) will continue to invest in the Company or one or more Client Accounts, will provide the BlackRock Entities information about markets and industries in which the BlackRock Entities operate (or are contemplating operations) or will provide other services that are beneficial to the BlackRock Entities, the Company or one or more Client Accounts. The Advisor expects to be subject to a potential conflict of interest in making such recommendations, in that Advisor has an incentive to maintain goodwill between it and clients and other market participants, while the products or services recommended may not necessarily be the best available or most cost effective to the Company or its investments.

Legal Representation. The Company, as well as the Advisor and/or other BlackRock Entities, have engaged several counsels to represent them. In connection with such representation, counsel has relied upon certain information furnished to them by the Advisor and the BlackRock Entities, and has not investigated or verified the accuracy or completeness of such information. Such counsel's engagement is limited to the specific matters as to which they are consulted and, therefore, there may exist facts or circumstances that could have a bearing on the Company's or BlackRock's financial condition or operations with respect to which counsel has not been consulted and for which they expressly disclaim any responsibility. Counsel has not represented and will not be representing stockholders. No independent counsel has been retained (or is expected to be retained) to represent stockholders. No attorney-client relationship exists between any counsel and any stockholder solely by such stockholder making an investment in the Company. As a result, stockholders are urged to retain their own counsel.

Resolution of Conflicts. Any conflicts of interest that arise between the Company or particular stockholders, on the one hand, and other Client Accounts or BlackRock Entities or affiliates thereof, on the other hand, will be discussed and resolved on a case-by-case basis by business, legal and compliance officers of the Advisor and its affiliates, as applicable. Any such discussions will take into consideration the interests of the relevant parties and the circumstances giving rise to the conflicts. Stockholders should be aware that conflicts will not necessarily be resolved in favor of the interests of the Company or any affected stockholder. There can be no assurance that any actual or potential conflicts of interest will not result in the Company receiving less favorable investment or other terms with respect to investments, transactions or services than if such conflicts of interest did not exist.

Potential Impact on the Company. It is difficult to predict the circumstances under which one or more of the foregoing conflicts could become material, but it is possible that such relationships could require the Company to refrain from making all or a portion of

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any investment or a disposition in order for BlackRock to comply with its fiduciary duties, the 1940 Act, the Advisers Act or other applicable law. The Advisor may, under certain circumstances, seek to have conflicts or transactions involving conflicts approved in accordance with the governing agreements of the Company. Copies of Part 2A of the Advisor's Form ADV, which includes additional detail regarding conflicts of interest that are relevant to BlackRock's investment management business, are available at www.sec.gov and will be provided to current and prospective stockholders upon request.

The foregoing list of potential and actual conflicts of interest does not purport to be a complete enumeration of the conflicts attendant to an investment in the Company. Additional conflicts may exist that are not presently known to the Advisor, BlackRock or their respective affiliates or are deemed immaterial. Prospective investors should consult with their independent advisors before deciding whether to invest in the Company. In addition, as the investment program of the Company develops and changes over time, an investment in the Company may be subject to additional and different actual and potential conflicts of interest.

**Our incentive compensation may induce our Advisor to make certain investments, including speculative investments.**

The incentive compensation payable by us to the Advisor may create an incentive for the Advisor to make investments on our behalf that are risky or more speculative than would be the case in the absence of such compensation arrangement. The way in which the incentive compensation is determined may encourage the Advisor to increase the use of leverage or take additional risk to increase the return on our investments. Under certain circumstances, the use of leverage may increase the likelihood of default, which would disfavor the holders of our common stock. A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to certain of our debt investments and may accordingly result in a substantial increase in the amount of incentive compensation payable to the Advisor with respect to our cumulative investment income. Although the incentive compensation is subject to a total return hurdle, the Advisor may have some ability to accelerate the realization of gains to obtain incentive compensation earlier than it otherwise would when it may be in our best interests to not yet realize gains. Our directors monitor our use of leverage and the Advisor's management of our investment program in the best interests of our common stockholders.

We may invest, to the extent permitted by law, in the securities and instruments of other investment companies, including private funds, and, to the extent we so invest, we will bear our ratable share of any such investment company's expenses, including management and performance fees. We will also remain obligated to pay management and incentive compensation to the Advisor with respect to the assets invested in the securities and instruments of other investment companies. With respect to each of these investments, each of our common stockholders will bear his or her share of our management and incentive compensation as well as indirectly bear the management and performance fees and other expenses of any investment companies in which we invest.

**We may be obligated to pay the Advisor incentive compensation payments in excess of the amounts we would have paid if such compensation was subject to clawback arrangements.**

The Advisor is entitled to incentive compensation for each fiscal quarter after January 1, 2013 in an amount equal to a percentage of our ordinary income (before deducting incentive compensation) since that date and, separately, a percentage of our realized capital gains (net of realized capital losses and unrealized depreciation) since that date, in each case subject to a cumulative total return requirement. If we pay incentive compensation and thereafter experience additional realized capital losses or unrealized capital depreciation such that we would no longer have been required to provide incentive compensation, we will not be able to recover any portion of the incentive compensation previously paid or distributed because our incentive compensation arrangements do not contain any clawback provisions. As a result, the incentive compensation could exceed 17.5% of our cumulative total return, depending on the timing of unrealized appreciation, net unrealized depreciation and net realized capital losses. For example, part of the incentive compensation payable or distributable by us that relates to our ordinary income is computed on income that may include interest that has been accrued but not yet received in cash. If a portfolio company defaults on a loan, it is possible that accrued interest previously used in the calculation of the incentive compensation will become uncollectible. Similarly, the income component is measured against a total return limitation that includes unrealized gains. Such gains may not be realized or may be realized at a lower amount. Consequently, we may have paid incentive compensation on income in circumstances where we otherwise would not have done so and with respect to which we do not have a clawback right against the Advisor.

**Our Advisor's liability is limited under the investment management agreement, and we are required to indemnify our Advisor against certain liabilities, which may lead our Advisor to act in a riskier manner on our behalf than it would when acting for its own account.**

Our Advisor has not assumed any responsibility to us other than to render the services described in the investment management agreement, and it will not be responsible for any action of our Board of Directors in declining to follow our Advisor's advice or recommendations. Pursuant to the investment management agreement, our Advisor and its members and their respective officers, managers, partners, agents, employees, controlling persons and members and any other person or entity affiliated with it will not be liable to us for their acts under the investment management agreement, absent willful misfeasance, bad faith, gross negligence or reckless disregard in the performance of their duties. We have agreed to indemnify, defend and protect our Advisor and its members and their

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respective officers, managers, partners, agents, employees, controlling persons and members and any other person or entity affiliated with it with respect to all damages, liabilities, costs and expenses resulting from acts of our Advisor not arising out of willful misfeasance, bad faith, gross negligence or reckless disregard in the performance of their duties under the investment and management agreement. These protections may lead our Advisor to act in a riskier manner when acting on our behalf than it would when acting for its own account.

**We are dependent upon senior management personnel of the Advisor for our future success, and if the Advisor is unable to retain qualified personnel or if the Advisor loses any member of its senior management team, our ability to achieve our investment objective could be significantly harmed.** 

The success of the Company is highly dependent on the financial and managerial expertise of the Advisor. The loss of one or more of the voting members of the Investment Committee could have a material adverse effect on the performance of the Company. Although the Advisor and the voting members of the Investment Committee devote a significant amount of their respective efforts to the Company, they actively manage investments for other clients and are not required to (and will not) devote all of their time to the Company's affairs.

**The Advisor can resign on 60 days' notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.**

The Advisor has the right, under our investment management agreement, to resign at any time upon not more than 60 days' written notice, whether we have found a replacement or not. If the Advisor resigns, we may not be able to find a new investment advisor or hire internal management with similar expertise and ability to provide the same or equivalent services on acceptable terms within 60 days, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, our financial condition, business and results of operations as well as our ability to pay distributions are likely to be adversely affected and the market price of our common stock may decline. In addition, the coordination of our internal management and investment activities is likely to suffer if we are unable to identify and reach an agreement with a single institution or group of executives having the expertise possessed by the Advisor and its affiliates. Even if we are able to retain comparable management, whether internal or external, the integration of such management and their lack of familiarity with our investment objective may result in additional costs and time delays that may adversely affect our financial condition, business and results of operations.

**We may experience fluctuations in our periodic operating results.**

We could experience fluctuations in our periodic operating results due to a number of factors, including the interest rates payable on the debt securities we acquire, the default rate on such securities, the level of our expenses (including the interest rates payable on our borrowings), the dividend rates payable on preferred stock we issue, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

**If we fail to maintain our status as a BDC, our business and operating flexibility could be significantly reduced.**

We qualify as a BDC under the 1940 Act. The 1940 Act imposes numerous constraints on the operations of business development companies. For example, BDCs are prohibited from making any unqualifying investments unless at least 70% of their total assets are invested in qualifying investments which are primarily securities of private or thinly-traded U.S. companies, cash, cash equivalents, U.S. government securities and other high quality debt investments that mature in one year or less. Failure to comply with the requirements imposed on business development companies by the 1940 Act could cause the SEC to bring an enforcement action against us and/or expose us to claims of private litigants. In addition, any such failure could cause an event of default under the Leverage Program, which could have a materially adverse effect on our business, financial conditions or results of operations.

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

In order for the Company to qualify for the tax benefits available to RICs and to minimize payment of excise taxes, we intend to distribute to our stockholders substantially all of our annual taxable income, and treat such amounts as deemed distributions to our stockholders. If we elect to treat any amounts as deemed distributions, we must pay income taxes at the corporate rate on such deemed distributions on behalf of our stockholders and our stockholders will receive a tax credit for such amounts and an increase in basis. A stockholder that is not subject to U.S. federal income tax or otherwise is not required to file a U.S. federal income tax return would be required to file a U.S. federal income tax return on the appropriate form in order to claim a refund for the taxes we paid. As a result of

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these requirements, we will likely need to raise capital from other sources to grow our business. Unfavorable economic or capital market conditions may increase our funding costs, limit our access to the capital markets or could result in a decision by lenders not to extend credit to us. An inability to successfully access the capital markets could limit our ability to grow our business and fully execute our business strategy and could decrease our earnings, if any.

As a BDC, we are not able to incur senior securities unless after giving effect thereto we meet a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which includes all of our borrowings, of at least 150%. This means that for every $100 of net assets, we may raise $200 from senior securities, such as borrowings or issuing preferred stock. These requirements limit the amount that we may borrow.

Because we will continue to need capital to grow our investment portfolio, these limitations may prevent us from incurring debt and require us to raise additional equity at a time when it may be disadvantageous to do so. While we expect we will be able to borrow and to issue additional debt securities and expect that we will be able to issue additional equity securities, we cannot assure you that debt and equity financing will be available to us on favorable terms, or at all. In addition, as a BDC, we generally will not be permitted to issue equity securities priced below net asset value without stockholder approval. If additional funds are not available to us, we could be forced to curtail or cease new investment activities and our net asset value or common stock price could decline.

**The highly competitive market in which we operate may limit our investment opportunities.**

A number of entities compete with us to make the types of investments that we make. We compete with other BDCs, public and private funds, commercial and investment banks, commercial financing companies, and, to the extent they provide an alternative form of financing, private equity funds. Additionally, because competition for investment opportunities generally has increased among alternative investment vehicles, such as hedge funds, those entities now invest in areas in which they have not traditionally invested, including making investments in middle-market private companies. As a result of these new entrants, competition for investment opportunities intensified over the past several years and may intensify further in the future. Some of our existing and potential competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions and valuation requirements that the 1940 Act imposes on us as a BDC and that the Code imposes on us as a RIC. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results of operations. Also, as a result of this existing and potentially increasing competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we can offer no assurance that we will be able to identify and make investments that are consistent with our investment objective.

We do not seek to compete primarily based on the interest rates we offer, and we believe that some of our competitors make loans with interest rates that are comparable to or lower than the rates we offer.

We may lose investment opportunities if we do not match our competitors' pricing, terms and structure. If we match our competitors' pricing, terms and structure, we may experience decreased net interest income and increased risk of credit loss. As a result of operating in such a competitive environment, we may make investments that are on better terms to our portfolio companies than what we may have originally anticipated, which may impact our return on these investments.

**Our Board of Directors may change our investment objective, operating policies and strategies without prior notice or stockholder approval, the effect of which may be adverse.**

Our Board of Directors has the authority to modify or waive certain of our investment objective, operating policies and strategies without prior notice and without stockholder approval (except as required by the 1940 Act). However, absent stockholder approval, we may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results or value of our common stock. Nevertheless, the effects could adversely affect our business and impact our ability to make distributions to our stockholders.

**Risks related to our investments**

**Our investments are risky and highly speculative, and we could lose all or part of our investment.**

We invest primarily in middle-market companies primarily through leveraged loans.

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Risks Associated with middle-market companies. Investing in private middle-market companies involves a number of significant risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•these companies may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors' actions and market conditions, as well as general economic downturns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•they are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on the portfolio company and, in turn, on us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our executive officers, directors and the Advisor may, in the ordinary course of business, be named as defendants in litigation arising from our investments in the portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in laws and regulations, as well as their interpretations, may adversely affect their respective businesses, financial structures or prospects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•they may have difficulty accessing the capital markets to meet future capital needs.

Limited public information exists about private middle-market companies, and we expect to rely on the Advisor's investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. These companies and their financial information are not subject to the Sarbanes-Oxley Act of 2002 and other rules that govern disclosures and financial controls of public companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and we may lose money on our investment.

Lower Credit Quality Obligations. Most of our debt investments are likely to be in lower grade obligations. The lower grade investments in which we invest may be rated below investment grade by one or more nationally-recognized statistical rating agencies at the time of investment or may be unrated but determined by the Advisor to be of comparable quality. Debt securities rated below investment grade are commonly referred to as "junk bonds" and are considered speculative with respect to the issuer's capacity to pay interest and repay principal. The debt that we invest in typically is not rated prior to our investment by any rating agency, but we believe that if such investments were rated, they would be below investment grade (rated lower than "Baa3" by Moody's Investors Service, lower than "BBB-" by Fitch Ratings or lower than "BBB-" by Standard & Poor's). We may invest without limit in debt of any rating, as well as debt that has not been rated by any nationally recognized statistical rating organization.

Investment in lower grade investments involves a substantial risk of loss. Lower grade securities or comparable unrated securities are considered predominantly speculative with respect to the issuer's ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for lower grade debt tend to be very volatile and are less liquid than investment grade securities. For these reasons, your investment in our company is subject to the following specific risks:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increased price sensitivity to a deteriorating economic environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•greater risk of loss due to default or declining credit quality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•adverse company specific events are more likely to render the issuer unable to make interest and/or principal payments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•if a negative perception of the lower grade debt market develops, the price and liquidity of lower grade securities may be depressed. This negative perception could last for a significant period of time.

Adverse changes in economic conditions are more likely to lead to a weakened capacity of a lower grade issuer to make principal payments and interest payments than an investment grade issuer. The principal amount of lower grade securities outstanding has proliferated in the past decade as an increasing number of issuers have used lower grade securities for corporate financing. An economic downturn could severely affect the ability of highly leveraged issuers to service their debt obligations or to repay their obligations upon maturity. Similarly, downturns in profitability in specific industries could adversely affect the ability of lower grade issuers in that industry to meet their obligations. The market values of lower grade debt tend to reflect individual developments of the issuer to a greater

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extent than do higher quality investments, which react primarily to fluctuations in the general level of interest rates. Factors having an adverse impact on the market value of lower grade debt may have an adverse effect on our net asset value and the market value of our common stock. In addition, we may incur additional expenses to the extent we are required to seek recovery upon a default in payment of principal of or interest on our portfolio holdings. In certain circumstances, we may be required to foreclose on an issuer's assets and take possession of its property or operations. In such circumstances, we would incur additional costs in disposing of such assets and potential liabilities from operating any business acquired.

The secondary market for lower grade debt is unlikely to be as liquid as the secondary market for more highly rated debt, a factor which may have an adverse effect on our ability to dispose of a particular instrument. There are fewer dealers in the market for lower grade securities than investment grade obligations. The prices quoted by different dealers may vary significantly and the spread between the bid and asked price is generally larger than for higher quality instruments. Under adverse market or economic conditions, the secondary market for lower grade debt could contract further, independent of any specific adverse changes in the condition of a particular issuer, and these instruments may become highly illiquid. As a result, we could find it more difficult to sell these instruments or may be able to sell the securities only at prices lower than if such instruments were widely traded. Prices realized upon the sale of such lower rated or unrated securities, under these circumstances, may be less than the prices used in calculating our net asset value.

Since investors generally perceive that there are greater risks associated with lower grade debt of the type in which we may invest a portion of our assets, the yields and prices of such debt may tend to fluctuate more than those for higher rated instruments. In the lower quality segments of the fixed income markets, changes in perceptions of issuers' creditworthiness tend to occur more frequently and in a more pronounced manner than do changes in higher quality segments of the income securities market, resulting in greater yield and price volatility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distressed Debt Securities Risk. At times, distressed debt obligations may not produce income and may require us to bear certain extraordinary expenses (including legal, accounting, valuation and transaction expenses) in order to protect and recover our investment. Therefore, our ability to achieve current income for our stockholders may be diminished. We also will be subject to significant uncertainty as to when and in what manner and for what value the distressed debt we invest in will eventually be satisfied (e.g., through a liquidation of the obligor's assets, an exchange offer or plan of reorganization involving the distressed debt securities or a payment of some amount in satisfaction of the obligation). In addition, even if an exchange offer is made or plan of reorganization is adopted with respect to distressed debt we hold, there can be no assurance that the securities or other assets received by us in connection with such exchange offer or plan of reorganization will not have a lower value or income potential than may have been anticipated when the investment was made. Moreover, any securities received by us upon completion of an exchange offer or plan of reorganization may be restricted as to resale. As a result of our participation in negotiations with respect to any exchange offer or plan of reorganization with respect to an issuer of distressed debt, we may be restricted from disposing of such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment-in-kind Interest Risk. Our loans may contain a payment-in-kind, or PIK, interest provision. PIK investments carry additional risk as holders of these types of securities receive no cash until the cash payment date unless a portion of such securities is sold. If the issuer defaults the Company may obtain no return on its investment. The PIK interest, computed at the contractual rate specified in each loan agreement, is added to the principal balance of the loan and recorded as interest income. To avoid the imposition of corporate-level tax on us, this non-cash source of income needs to be paid out to stockholders in cash distributions or, in the event that we determine to do so and in certain cases, in shares of our common stock, even though we have not yet collected and may never collect the cash relating to the PIK interest. As a result, we may have to distribute a taxable stock dividend to account for PIK interest even though we have not yet collected the cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred Stock Risk. To the extent we invest in preferred securities, there are special risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferral. Preferred securities may include provisions that permit the issuer, at its discretion, to defer distributions for a stated period without any adverse consequences to the issuer. If we own a preferred security that is deferring its distributions, we may be required to report income for tax purposes although we have not yet received such income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordination. Preferred securities are subordinated to bonds and other debt instruments in a company's capital structure in terms of priority to corporate income and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity. Preferred securities may be substantially less liquid than many other securities, such as common stocks or U.S. Government securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Voting Rights. Generally, preferred security holders have no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security holders may elect a

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number of directors to the issuer's board. Generally, once all the arrearages have been paid, the preferred security holders no longer have voting rights.

Equity Security Risk. We may have exposure to equity securities. Although equity securities have historically generated higher average total returns than fixed-income securities over the long term, equity securities also have experienced significantly more volatility in those returns. The equity securities that we acquire may fail to appreciate and may decline in value or become worthless.

**A trading market or market value of our debt securities may fluctuate.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event we issue debt securities, they may or may not have an established trading market. We cannot assure you that a trading market for debt securities will ever develop or be maintained if developed. In addition to our creditworthiness, many factors may materially adversely affect the trading market for, and market value of, debt securities we may issue. These factors include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the time remaining to the maturity of these debt securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the outstanding principal amount of debt securities with terms identical to these debt securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ratings assigned by national statistical ratings agencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the general economic environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the supply of debt securities trading in the secondary market, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the redemption or repayment features, if any, of these debt securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the level, direction and volatility of market interest rates generally; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•market rates of interest higher or lower than rates borne by the debt securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should also be aware that there may be a limited number of buyers if and when you decide to sell your debt securities. This too may materially adversely affect the market value of the debt securities or the trading market for the debt securities.

**We may expose ourselves to risks if we engage in hedging transactions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may enter into hedging transactions, which could expose us to risks associated with such transactions. We may utilize instruments such as forward contracts and interest rate swaps, caps, collars and floors to seek to hedge against fluctuations in the relative values of our portfolio positions and amounts due under our debt arrangements from changes in market interest rates. Use of these hedging instruments may include counterparty credit risk. Utilizing such hedging instruments does not eliminate the possibility of fluctuations in the values of such positions and amounts due under our debt arrangements or prevent losses if the values of such positions decline. However, such hedging can establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio positions. Such hedging transactions may also limit the opportunity for gain if the values of the underlying portfolio positions should increase. Moreover, it may not be possible to hedge against an interest rate fluctuation that is so generally anticipated that we are not able to enter into a hedging transaction at an acceptable price. The Dodd-Frank Act has made broad changes to the OTC derivatives market, granted significant new authority to the CFTC and the SEC to regulate OTC derivatives (swaps and security-based swaps) and participants in these markets. The Dodd-Frank Act is intended to regulate the OTC derivatives market by requiring many derivative transactions to be cleared and traded on an exchange, expanding entity registration requirements, imposing business conduct requirements on dealers and requiring banks to move some derivatives trading units to a non-guaranteed affiliate separate from the deposit-taking bank or divest them altogether. The CFTC has implemented mandatory clearing and exchange-trading of certain OTC derivatives contracts including many standardized interest rate swaps and credit default index swaps. The CFTC continues to approve contracts for central clearing. Exchange-trading and central clearing are expected to reduce counterparty credit risk by substituting the clearinghouse as the counterparty to a swap and increase liquidity, but exchange-trading and central clearing do not make swap transactions risk-free. Uncleared swaps, such as non-deliverable foreign currency forwards, are subject to certain margin requirements that mandate the posting and collection of minimum margin amounts. This requirement may result in the portfolio and its counterparties posting higher margin amounts for uncleared swaps than would otherwise be the case. Certain rules require centralized reporting of detailed information about many types of cleared and uncleared swaps. Reporting of swap data may result in greater market transparency, but may subject a portfolio to additional administrative burdens, and the safeguards established to protect trader anonymity may not function as expected. Future CFTC or SEC rulemakings to implement the Dodd-Frank Act requirements could potentially limit or completely restrict our ability to use these instruments as a part of our investment strategy, increase the costs of using these instruments or make them less effective. Limits or restrictions applicable to the counterparties with which we engage in derivative transactions could also prevent us from using these instruments or affect the pricing or other factors relating to these instruments, or may change availability

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of certain investments. In addition, on October 28, 2020, the SEC adopted new regulations governing the use of derivatives by closed-end funds ("Rule 18f-4"), which the Company was required to comply with as of August 19, 2022. As a result, the Company is required to implement and comply with the Rule 18f-4 limits on the amount of derivatives the Company can enter into, eliminate the asset segregation framework previously used to comply with Section 18 of the 1940 Act, treat derivatives as senior securities so that a failure to comply with the limits would result in a statutory violation and require the Company, if the Company's use of derivatives is more than a limited specified exposure amount (10% of net assets), to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The success of our hedging transactions will depend on our ability to correctly predict movements and interest rates. Therefore, while we may enter into such transactions to seek to reduce interest rate risks, unanticipated changes in interest rates may result in poorer overall investment performance than if we had not engaged in any such hedging transactions. In addition, the degree of correlation between price movements of the instruments used in a hedging strategy and price movements in the portfolio positions being hedged may vary. Moreover, for a variety of reasons, we may not seek to establish a perfect correlation between such hedging instruments and the portfolio holdings or debt arrangements being hedged. Any such imperfect correlation may prevent us from achieving the intended hedge and expose us to risk of loss.

**We are subject to credit risk related to investments in our portfolio companies and with our financial institutions and counterparties.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has investments in lower rated and comparable quality unrated senior and junior secured, unsecured and subordinated debt securities and loans, which are subject to a greater degree of credit risk than more highly rated investments. The risk of loss due to default by the issuer is significantly greater for holders of such securities and loans, particularly in cases where the investment is unsecured or subordinated to other creditors of the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company may be exposed to counterparty credit risk, or the risk that an entity with which the Company has unsettled or open transactions may fail to or be unable to perform on its commitments. The Company manages counterparty risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Company to market, issuer and counterparty credit risks, consist principally of investments in portfolio companies. The extent of the Company's exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their fair value recorded in the Consolidated Statements of Assets and Liabilities. The Company is also exposed to credit risk related to maintaining all of its cash at a major financial institution.

**Because our investments are generally not in publicly traded securities, there will be uncertainty regarding the value of our investments, which could adversely affect the determination of our net asset value.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our portfolio investments will generally not be in publicly traded securities. As a result, although we expect that some of our equity investments may trade on private secondary marketplaces, the fair value of our direct investments in portfolio companies will often not be readily determinable. Under the 1940 Act, investments for which there are no readily available market quotations, including securities that while listed on a private securities exchange have not actively traded, will be valued at fair value as determined using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors. The Valuation Designee determines the value of our investments in accordance with such valuation policy. In connection with such determination, the Valuation Designee utilizes the services of an independent valuation firm, which prepares valuation reports on a quarterly basis for most of our portfolio investments that are not publicly traded or for which we do not have readily available market quotations, including securities that while listed on a private securities exchange, have not actively traded. However, the Valuation Designee retains ultimate authority as to the appropriate valuation of each such investment. The types of factors that the Valuation Designee takes into account in approving fair value with respect to such non-traded investments includes, as relevant and, to the extent available, the portfolio company's earnings, the markets in which the portfolio company does business, comparison to valuations of publicly traded companies, comparisons to recent sales of comparable companies, the discounted value of the cash flows of the portfolio company and other relevant factors. This information may not be available because it is difficult to obtain financial and other information with respect to private companies, and even where we are able to obtain such information, there can be no assurance that it is complete or accurate. Because such valuations are inherently uncertain and may be based on estimates, our determinations of fair value may differ materially from the values that would be assessed if a readily available market for these securities existed. Due to this uncertainty, our fair value determinations with respect to any non-traded investments we hold may cause our net asset value on a given date to materially understate or overstate the value that we may ultimately realize on one or more of our investments. As a result, investors purchasing our securities based on an overstated net asset value may pay a higher price than the value of our investments might warrant. Conversely, investors selling securities based on a net asset value that understates the value of our investments may receive a lower price for their securities than the value of our investments might warrant.

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**We and the Advisor may be a party to legal proceedings in connection with our investments in our portfolio companies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, we and the Advisor may be a party to certain legal proceedings incidental to the normal course of our business, including the enforcement of our rights under contracts with our portfolio companies. While we cannot predict the outcome of these legal proceedings with certainty, we do not expect that these proceedings will have a material effect on our consolidated financial statements.

**We may not be in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments.**

We do not generally intend to take controlling equity positions in our portfolio companies. To the extent that we do not hold a controlling equity interest in a portfolio company, we are subject to the risk that such portfolio company may make business decisions with which we disagree, and the stockholders and management of such portfolio company may take risks or otherwise act in ways that are adverse to our interests. Due to the lack of liquidity for the debt and equity investments that we typically hold in our portfolio companies, we may not be able to dispose of our investments in the event we disagree with the actions of a portfolio company, and may therefore suffer a decrease in the value of our investments.

In addition, the Company may not be in a position to control any portfolio company by investing in its debt securities. As a result, the Company is subject to the risk that a portfolio company in which it invests may make business decisions with which it disagrees and the management of such company, as representatives of the holders of their common equity, may take risks or otherwise act in ways that do not serve the Company's interests as debt investors.

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

The portfolio companies we invest in usually have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt securities in which we invest. By their terms, such debt instruments may provide that the holders are entitled to receive payment of interest or principal on or before the dates on which we are entitled to receive payments in respect of the debt securities in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution in respect of our investment. After repaying such senior creditors, such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt securities in which we invest, we would have to share any distributions on an equal and ratable basis with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.

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

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

When we are a debt or minority equity investor in a portfolio company, we are often not in a position to exert influence on the entity, and other equity holders and management of the company may make decisions that could decrease the value of our portfolio holdings.

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When we make debt or minority equity investments, we are subject to the risk that a portfolio company may make business decisions with which we disagree and the other equity holders and management of such company may take risks or otherwise act in ways that do not serve our interests. As a result, a portfolio company may make decisions that could decrease the value of our investment.

We may also make unsecured loans to portfolio companies, meaning that such loans will not benefit from any interest in collateral of such companies. Liens on such portfolio companies' collateral, if any, will secure the portfolio company's obligations under its outstanding secured debt and may secure certain future debt that is permitted to be incurred by the portfolio company under its secured loan agreements. The holders of obligations secured by such liens will generally control the liquidation of, and be entitled to receive proceeds from, any realization of such collateral to repay their obligations in full before us. In addition, the value of such collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from sales of such collateral would be sufficient to satisfy our unsecured loan obligations after payment in full of all secured loan obligations. If such proceeds were not sufficient to repay the outstanding secured loan obligations, then our unsecured claims would rank equally with the unpaid portion of such secured creditors' claims against the portfolio company's remaining assets, if any.

**There may be circumstances in which our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.**

If one of our portfolio companies were to go bankrupt, even though we may have structured our interest as senior debt, depending on the facts and circumstances, a bankruptcy court might recharacterize our debt holding as an equity investment and subordinate all or a portion of our claim to that of other creditors. In addition, lenders can be subject to lender liability claims for actions taken by them where they become too involved in the borrower's business or exercise control over the borrower. For example, we could become subject to a lender's liability claim, if, among other things, we actually render significant managerial assistance.

**Our portfolio companies may be highly leveraged.**

Some of our portfolio companies may be highly leveraged, which may have adverse consequences to these companies and to us as an investor. These companies may be subject to restrictive financial and operating covenants and the leverage may impair these companies' ability to finance their future operations and capital needs. As a result, these companies' flexibility to respond to changing business and economic conditions and to take advantage of business opportunities may be limited. Further, a leveraged company's income and net assets will tend to increase or decrease at a greater rate than if borrowed money were not used

**Our portfolio companies may prepay loans, which prepayment may reduce stated yields in the future if capital returned cannot be invested in transactions with equal or greater expected yields.**

Certain of the loans we make are prepayable at any time, some of them of them at no premium to par. We cannot predict when such loans may be prepaid. Whether a loan is prepaid will depend both on the continued positive performance of the portfolio company and the existence of favorable financing market conditions that permit such company to replace existing financing with less expensive capital. As market conditions change frequently, it is unknown when, and if, this may be possible for each portfolio company. In the case of some of these loans, having the loan prepaid early may reduce the achievable yield for the Company in the future below the current yield disclosed for our portfolio if the capital returned cannot be invested in transactions with equal or greater expected yields. Additionally, these companies may not be able to get a full tax deduction for such borrowings.

**Concentration of our assets in an issuer, industry or sector may present more risks than if we were more broadly diversified over numerous issuers, industries and sectors of the economy.**

We are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. To the extent that we assume large positions in the securities of a small number of issuers, our net asset value may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market's assessment of the issuer. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company.

In addition, we may, from time to time, invest a substantial portion of our assets in the securities of issuers in any single industry or sector of the economy or in only a few issuers. We cannot predict the industries or sectors in which our investment strategy may cause us to concentrate and cannot predict the level of our diversification among issuers to ensure that we satisfy diversification requirements for qualification as a RIC for U.S. federal income tax purposes. A downturn in an industry or sector in which we are concentrated would have a larger impact on us than on a company that does not concentrate in that particular industry or sector. Furthermore, the Advisor has not made and does not intend to make any determination as to the allocation of assets among different classes of securities. At any

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point in time we may be highly concentrated in a single type of asset, such as junior unsecured loans or distressed debt. Consequently, events which affect a particular asset class disproportionately could have an equally disproportionate effect on us.

**Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.**

Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as "follow-on" investments in order to: (1) increase or maintain in whole or in part our equity ownership percentage; (2) exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or (3) attempt to preserve or enhance the value of our initial investment.

We may elect not to make follow-on investments or otherwise lack sufficient funds to make those investments. Our failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful operation. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make such follow-on investment because we may not want to increase our concentration of risk, because we prefer other opportunities, because we are inhibited by compliance with BDC requirements or because we desire to maintain our tax status.

**Our investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments.**

Our investment strategy contemplates that a portion of our investments may be in securities of foreign companies in order to provide diversification or to complement our U.S. investments, although we are required generally to invest at least 70% of our assets in companies organized and having their principal place of business within the U.S. and its possessions. Accordingly, we may invest on an opportunistic basis in certain non-U.S. companies, including those located in emerging markets, that otherwise meet our investment criteria. In regards to the regulatory requirements for business development companies, some of these investments may not qualify as investments in "eligible portfolio companies," and thus may not be considered "qualifying assets." "Eligible portfolio companies" generally include U.S. companies that are not investment companies and that do not have securities listed on a national exchange. If at any time less than 70% of our gross assets are comprised of qualifying assets, including as a result of an increase in the value of any non-qualifying assets or decrease in the value of any qualifying assets, we would generally not be permitted to acquire any additional non-qualifying assets until such time as 70% of our then current gross assets were comprised of qualifying assets. We would not be required, however, to dispose of any non-qualifying assets in such circumstances. In addition, investing in foreign companies, and particularly those in emerging markets, may expose us to additional risks not typically associated with investing in U.S. companies. These risks include changes in exchange control regulations, political and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the case in the United States, higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility. These risks may be more pronounced for portfolio companies located or operating primarily in emerging markets, whose economies, markets and legal systems may be less developed. Further, we may have difficulty enforcing our rights as equity holders in foreign jurisdictions. In addition, to the extent we invest in non-U.S. companies, we may face greater exposure to foreign economic developments.

Although it is anticipated that most of our investments will be denominated in U.S. dollars, our investments that are denominated in a foreign currency will be subject to the risk that the value of a particular currency may change in relation to the U.S. dollar. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation and political developments. We may employ hedging techniques to minimize these risks, but we can offer no assurance that we will, in fact, hedge currency risk or, that if we do, such strategies will be effective. As a result, a change in currency exchange rates may adversely affect our profitability.

**Our investments in the financial services sector are subject to various risks including volatility and extensive government regulation.**

These risks include the effects of changes in interest rates on the profitability of financial services companies, the rate of corporate and consumer debt defaults, price competition, governmental limitations on a company's loans, other financial commitments, product lines and other operations and recent ongoing changes in the financial services industry (including consolidations, development of new products and changes to the industry's regulatory framework). Insurance companies have additional risks, such as heavy price competition, claims activity and marketing competition, and can be particularly sensitive to specific events such as man-made and natural disasters (including weather catastrophes), terrorism, mortality risks and morbidity rates.

**Our investments in the Software, Internet & Catalog Retail, and IT Services sector are subject to various risks, including intellectual property infringement issues and rapid technological changes, which may adversely affect our performance. Each industry contains certain industry related credit risks.**

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General risks of companies in the Software, Internet & Catalog Retail, and IT Services sector include intellectual property infringement liability issues, the inability to protect Internet software and other propriety technology, extensive competition and limited barriers to entry. Generally, the market for Internet software and services is categorized by rapid technological change, evolving industry standards, changes in customer requirements and frequent new product introduction and enhancements. If a portfolio company in the Internet software and services sector cannot develop new products and enhance its current products in response to technological changes and competing products, its business and operating results will be negatively affected. In addition, there has been a substantial amount of litigation in the Internet software and services relating to intellectual property rights. Regardless of whether claims that a company is infringing patents or other intellectual property have any merit, these claims are time-consuming and costly. Moreover, an Internet software and services company must monitor the unauthorized use of its intellectual property, which may be difficult and costly. A company's failure to protect its intellectual property could put it at a disadvantage to its competitors and harm its business, results of operations and financial condition. If an internet software and services company in which we invest is unable to navigate these risks, our performance may be adversely affected.

**The effect of global climate change may impact the operations of our portfolio companies.**

There may be evidence of global climate change. Climate change creates physical and financial risk and some of our portfolio companies may be adversely affected by climate change. For example, the needs of customers of energy companies vary with weather conditions, primarily temperature and humidity. To the extent weather conditions are affected by climate change, energy use could increase or decrease depending on the duration and magnitude of any changes. Increases in the cost of energy could adversely affect the cost of operations of our portfolio companies if the use of energy products or services is material to their business. A decrease in energy use due to weather changes may affect some of our portfolio companies' financial condition, through decreased revenues. Extreme weather conditions in general require more system backup, adding to costs, and can contribute to increased system stresses, including service interruptions.

**We may invest in "covenant-lite" loans, which could have limited investor protections.**

We may invest in, or obtain exposure to, obligations that may be "covenant-lite," which means such obligations lack, or possess fewer, financial covenants that protect lenders. Covenant-lite agreements feature incurrence covenants, as opposed to more restrictive maintenance covenants. Under a maintenance covenant, the borrower would need to meet regular, specific financial tests, while under an incurrence covenant, the borrower only would be required to comply with the financial tests at the time it takes certain actions (e.g., issuing additional debt, paying a dividend, making an acquisition). A covenant-lite obligation contains fewer maintenance covenants than other obligations, or no maintenance covenants, and may not include terms that allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached. Furthermore, in the event of default, covenant-lite loans may exhibit diminished recovery values as the lender may not have the opportunity to negotiate with the borrower prior to default.

**Risks related to our operations as a BDC.** 

**While our ability to enter into transactions with our affiliates is restricted under the 1940 Act, we have received an exemptive order from the SEC permitting certain affiliated investments subject to certain conditions. As a result, the Advisor may face conflicts of interests and investments made pursuant to the exemptive order conditions could in certain circumstances adversely affect the price paid or received by us or the availability or size of the position purchased or sold by us.**

Any person that owns, directly or indirectly, 5% or more of our outstanding voting securities or is managed by the Advisor will generally be our affiliate for purposes of the 1940 Act and we are generally prohibited from participating in certain transactions such as co-investing with, or buying or selling any security from or to, such affiliate, absent the prior approval of our independent directors and, in some cases, of the SEC. However, the Advisor and the funds managed by the Advisor have received an exemption from certain SEC regulations prohibiting transactions with affiliates. The exemptive order requires that certain procedures be followed prior to making an investment subject to the order and such procedures could in certain circumstances adversely affect the price paid or received by us or the availability or size of the position purchased or sold by us. The Advisor may also face conflicts of interest in making investments pursuant to the exemptive order.

The 1940 Act also prohibits certain "joint" transactions with certain of our affiliates, which could include investments in the same portfolio company (whether at the same or different times), without prior approval of our independent directors and, in some cases, of the SEC. We are prohibited from buying or selling any security from or to any person who owns more than 25% of our voting securities and from or to certain of that person's affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC (other than certain limited situations pursuant to current regulatory guidance). The analysis of whether a particular transaction constitutes a joint transaction requires a review of the relevant facts and circumstances relating to the particular transaction. Similar restrictions limit our ability to transact business with our officers or directors or their affiliates.

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**Regulations governing our operation as a BDC may limit our ability to, and the way in which we raise additional capital, which could have a material adverse impact on our liquidity, financial condition and results of operations and may hinder the Advisor's ability to take advantage of attractive investment opportunities and to achieve our investment objective.**

Our business requires a substantial amount of capital. We may acquire additional capital from the issuance of additional shares of our common stock or from the additional issuance of senior securities (including debt and preferred stock). However, we may not be able to raise additional capital in the future on favorable terms or at all. We may issue debt securities or preferred securities, which we refer to collectively as "senior securities," and we may borrow money from banks or other financial institutions, up to the maximum amount permitted by the 1940 Act. The 1940 Act permits us to issue senior securities or incur indebtedness only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 150% after such issuance or incurrence. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to liquidate a portion of our investments and repay a portion of our indebtedness at a time when such sales may be disadvantageous. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to liquidate a portion of our investments and repay a portion of our indebtedness at a time when such sales may be disadvantageous.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Senior Securities. As a result of issuing senior securities, we would also be exposed to typical risks associated with leverage, including an increased risk of loss. If we issue preferred securities they would rank "senior" to common stock in our capital structure, preferred stockholders would have separate voting rights and may have rights, preferences or privileges more favorable than those of our common stockholders. Furthermore, the issuance of preferred securities could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for our common stockholders or otherwise be in the best interests of our common stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Additional Common Stock. Our Board of Directors may decide to issue common stock to finance our operations rather than issuing debt or other senior securities. As a BDC, we are generally not able to issue our common stock at a price below net asset value, or issue securities convertible into common stock, without first obtaining the required approvals from our stockholders and our independent directors. If our common stock trades at a discount to net asset value, those restrictions could adversely affect our ability to raise equity capital. Except in connection with the exercise of warrants or the conversion of convertible securities, in any such case the price at which our securities are to be issued and sold may not be less than a price, that in the determination of our board of directors, closely approximates the market value of such securities at the relevant time. We may also make rights offerings to our stockholders. If we raise additional capital by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, the percentage ownership of our common stockholders at that time would decrease, and our common stockholders may experience dilution.

**Changes in the laws or regulations governing our business or the business of our portfolio companies, or changes in the interpretations thereof or newly enacted legislation and regulations, and any failure by us or our portfolio companies to comply with these laws or regulations, could have a material adverse effect on our business, results of operations or financial condition of us or our portfolio companies.**

We are subject to changing rules and regulations of federal and state governments, as well as the stock exchange in which our common stock is listed. These entities, including the Public Company Accounting Oversight Board, the SEC and The Nasdaq Global Select Market, have issued a significant number of new and increasingly complex requirements and regulations over the course of the last several years and continue to develop additional regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in the laws or regulations or the interpretations of the laws and regulations that govern BDCs, RICs or non-depository commercial lenders could significantly affect our operations and our cost of doing business. We are subject to federal, state and local laws and regulations and are subject to judicial and administrative decisions that affect our operations, including our loan originations, maximum interest rates, fees and other charges, disclosures to portfolio companies, the terms of secured transactions, collection and foreclosure procedures and other trade practices. If these laws, regulations or decisions change, or if we expand our business into jurisdictions that have adopted more stringent requirements than those in which we currently conduct business, we may have to incur significant expenses in order to comply, or we might have to restrict our operations. In addition, if we do not comply with applicable laws, regulations and decisions, we may lose licenses needed for the conduct of our business and may be subject to civil fines and criminal penalties, any of which could have a material adverse effect upon our business, results of operations of financial condition.

**If we do not invest a sufficient portion of our assets in qualifying assets, we could be precluded from investing in certain assets or could be required to dispose of certain assets, which could have a material adverse effect on our business, financial condition and results of operations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a BDC, we are prohibited from acquiring any assets other than "qualifying assets" unless, at the time of and after giving effect to such acquisition, at least 70% of our total assets are qualifying assets. As of December 31, 2022, approximately $30.9 million, or approximately 14.1%, of our adjusted total assets were not "qualifying assets." If we do not invest a sufficient portion of our assets in

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qualifying assets, we will be prohibited from investing in additional non-qualifying assets, which could have a material adverse effect on our business, financial condition and results of operations. Similarly, these rules could prevent us from making follow-on investments in existing portfolio companies (which could result in the dilution of our position) or could require us to dispose of investments at inopportune times in order to come into compliance with the 1940 Act. If we need to dispose of these investments quickly, it may be difficult to dispose of such investments on favorable terms. For example, we may have difficulty in finding a buyer and, even if a buyer is found, we may have to sell the investments at a substantial loss.

**We will be subject to corporate-level U.S. federal income tax on all of our income if we are unable to qualify as a RIC under the Code, which could have a material adverse effect on our financial performance.**

Although we are currently qualified as a RIC, no assurance can be given that we will be able to maintain RIC status. To maintain RIC status and be relieved of U.S. federal income taxes on income and gains distributed to its stockholders, we generally must meet the annual distribution, source-of-income and asset diversification requirements described below. In addition, our Leverage Program prohibits us from making distributions if doing so causes us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or the Leverage Program.

To qualify as a RIC under the Code, we generally must meet certain source-of-income, asset diversification and annual distribution requirements. The annual distribution requirement for a RIC will generally be satisfied if we distribute at least 90% of our ordinary income and net short-term capital gain in excess of net long-term capital loss, if any, to our stockholders. Since we use debt financing, we are subject to certain asset coverage ratio requirements and other financial covenants under the terms of the Leverage Program, and we are, in some circumstances, also subject to similar requirements under the 1940 Act. The requirements could, under certain circumstances, restrict us from making distributions necessary to qualify as a RIC. If we are unable to obtain cash from other sources, we may fail to qualify as a RIC and, thus, may be subject to corporate-level income tax. To qualify as a RIC, we generally must also meet certain asset diversification requirements at the end of each calendar quarter. Failure to meet these tests may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC status. Because we anticipate that most of our investments will be in private companies, any such dispositions could be made at disadvantageous prices and may result in substantial losses.

If we fail to qualify as a RIC for any reason and become subject to corporate-level income tax, the resulting corporate-level income taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions

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

For U.S. federal income tax purposes, we may include in income certain amounts that we have not yet received in cash, such as original issue discount, which may arise if we receive warrants in connection with the making of a loan or possibly in other circumstances, or PIK interest, which represents contractual interest added to the loan balance and due in the future, often only at the end of the loan. Such original issue discount, which could be significant relative to our overall investment activities, or increases in loan balances as a result of PIK arrangements are generally included in our taxable income before we receive any corresponding cash payments. We also may be required to include in income certain other amounts that we do not receive in cash. Similarly, newly enacted tax legislation contains rules that may in certain other circumstances require the recognition of non-cash taxable income or may limit the deductibility of certain of our cash expenses.

Since we may recognize taxable income before or without receiving cash representing such income or may be subject to limitations on the deductibility of our income, if we invest to a substantial extent in non-cash paying debt instruments we may have difficulty meeting the tax requirement to distribute at least 90% of our ordinary income and net short-term capital gain in excess of net long-term capital loss, if any, to maintain our status as a RIC. Accordingly, we may have to sell some of our investments at times we would not consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements.

**There is a risk that you may not receive distributions or that our distributions may not grow over time and a portion of our distributions may be a return of capital.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by the impact of one or more of the risk factors described in this filing. Due to the asset coverage test applicable to us under the 1940 Act as a BDC, we may be limited in our ability to make distributions. Additionally, a portion of such distributions may include a return of stockholder capital. Distributions in excess of our current and accumulated earnings and profits are considered nontaxable distributions and serve to reduce the basis of our

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shares in the hands of the common stockholders rather than being currently taxable. As a result of the reduction of the basis of our shares, common stockholders may incur additional capital gains taxes or may have lower capital losses.

**If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, stockholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud. Any failure to implement required new or improved controls, or difficulties encountered in their implementation could cause us to fail to meet our reporting obligations. In addition, any testing by us conducted in connection with Section 404 of the Sarbanes-Oxley Act, or the subsequent testing by our independent registered public accounting firm (when undertaken, as noted below), may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses or that may require prospective or retroactive changes to our consolidated financial statements or identify other areas for further attention or improvement. Inferior internal controls could also cause investors and lenders to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.

**We may experience cyber-security incidents and are subject to cyber-security risks.**

Our business operations rely upon secure information technology systems for data processing, storage, and reporting. Despite careful security and controls design, implementation and updating, our information technology systems could become subject to cyber-attacks. Cyber-attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through "hacking" or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (i.e. efforts to make network services unavailable to intended users). Network, system, application and data breaches could result in operational disruptions or information misappropriation, which could have a material adverse effect on our business, results of operations and financial condition.

Cyber-security failures or breaches by the Advisor, any sub-adviser(s) and other service providers (including, but not limited to, accountants, custodians, transfer agents and administrators), and the issuers of securities in which we invest, have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, interference with our ability to calculate our net asset value, impediments to trading, the inability of our stockholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future. While we have established a business continuity plan in the event of, and risk management systems to prevent such cyberattacks, there are inherent limitations in such plans and systems, including the possibility that certain risks have not been identified. Furthermore, we cannot control the cybersecurity plans and systems put in place by our service providers and issuers in which we invest. We and our stockholders could be negatively impacted as a result.

**The failure in cyber-security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The occurrence of a disaster such as a cyber-attack, a natural catastrophe, an industrial accident, a terrorist attack or war, events unanticipated in our disaster recovery systems, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on our results of operations. and financial condition, particularly if those events affect our computer-based data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of our managers were unavailable in the event of a disaster, our ability to effectively conduct our business could be severely compromised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We depend heavily upon computer systems to perform necessary business functions. Despite our implementation of a variety of security measures, our computer systems could be subject to cyber-attacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. Like other companies, we may experience threats to our data and systems, including malware and computer virus attacks, unauthorized access, system failures and disruptions. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary and other information processed and stored in, and transmitted through, our computer systems and networks, or otherwise cause interruptions or malfunctions in our operations, which could result in damage to our reputation, financial losses, litigation, increased costs, regulatory penalties and/or customer dissatisfaction or loss.

**We are dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our common stock and our ability to pay dividends.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business is dependent on our and third parties' communications and information systems. Further, in the ordinary course of our business we or the Advisor may engage certain third party service providers to provide us with services necessary for our business. Any failure or interruption of those systems or services, including as a result of the termination or suspension of an agreement with any third-party service providers, could cause delays or other problems in our business activities. Our financial, accounting, data processing, backup or other operating systems and facilities may fail to operate properly or become disabled or damaged as a result of a number of factors including events that are wholly or partially beyond our control and adversely affect our business. There could be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•sudden electrical or telecommunications outages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•natural disasters such as earthquakes, tornadoes and hurricanes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•disease pandemics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•events arising from local or larger scale political or social matters, including terrorist acts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•cyber-attacks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These events, in turn, could have a material adverse effect on our operating results and negatively affect the market price of our common stock and our ability to pay dividends to our stockholders.

**Risks Related to Our Common Stock**

**Shares of our common stock are not insured or guaranteed by any person or entity.**

The Company has no substantial assets other than the Company's investments. In the event of the dissolution of the Company or otherwise, if the proceeds of the Company's assets are insufficient to repay capital contributions made to the Company by the stockholders, no other assets will be available for the payment of any deficiency. Neither the Advisor nor its affiliates has any liability for the repayment of capital contributions made to the Company by the stockholders. Stockholders could experience a total loss of their investment in the Company

**Shares of our common stock are subject to restrictions on transfer.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our shares of common stock are not registered under the securities laws of any jurisdiction and therefore are subject to restrictions on transfer under the Securities Act and any similar U.S. state or non-U.S. laws, as applicable. The Company has no plans, and is under no obligation, to register the common stock under the Securities Act. Shares of our common stock may not be transferred, assigned, pledged or otherwise disposed of without the prior written consent of the Company. Shares of our common stock may be transferred only to other qualified investors. The Company may, in its discretion, choose not to permit a transfer of shares of its common stock to the extent that such transfer would create a risk that the assets of the Company could be deemed to be "plan assets" within the meaning of the regulation promulgated by the United States Department of Labor at 29 C.F.R. Section 2510.3-101 (as modified by Section 3(42) of ERISA), which assets are subject to Title I of ERISA or Section 4975 of the Code. Consequently, a stockholder cannot expect to liquidate its investment readily and must bear the economic risk of its investment for an indefinite period of time.

**We cannot assure you that a trading market for our common stock will develop or be maintained.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No public trading market exists for our common stock, and it is possible that none develops. Neither the Advisor, any placement agent nor any other person is under any obligation to make a market in the Company's commonstock. Consequently, a purchaser must be prepared to hold such shares for an indefinite period of time or until the termination date of the Company. In addition, shares of our common stock are subject to certain transfer restrictions and can only be transferred to certain transferees as described herein. Such restrictions on the transfer of the shares may further limit the liquidity of our common stock.

**Stockholders will not have any direct interests in our investments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The offering of shares of our securities does not constitute a direct or indirect offering of interests in the Company's investments. Stockholders will have no direct interest in the Company's investments and generally will have no voting rights in, or standing or recourse against, any of the Company's investments. Moreover, none of the stockholders will have the right to participate in the control, management or operations of any of the Company's investments, or have any discretion over the management of any of the Company's investments by reason of their investment in the Company.

**A stockholder default could have adverse consequences on the Company.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a stockholder fails to make a required capital contribution to the Company on its due date, there could be a material adverse effect on the Company's business, financial condition and results of operations, including an inability to fund its investment obligations, make appropriate distributions to stockholders or to continue to satisfy applicable regulatory requirements under the 1940 Act. In particular, the Company may be excluded from participating in certain investments. In addition, the Company may become subject to damages for breach of contract in respect of planned investments, or may need to sell assets, the proceeds of which may be used to offset such shortfall. The Company will bear and be responsible for all damages and losses directly incurred by the Company as a result of such default, which damages and losses may be significant. Any single defaulting stockholder could cause substantial costs to be incurred by the Company if such default causes the Company to fail to meet its contractual obligations or if the Company must pursue remedial action against such stockholder. As a result, the Company's ability to complete its investment program or otherwise to continue operations may be substantially impaired if a stockholder defaults, which may materially adversely affect the returns to the stockholders.

**Stockholders may receive confidential information.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the exceptions set forth in the subscription agreement, stockholders will be required to keep confidential all non-public information relating to the Company and its affairs (including applicable communications from the Company and/or the Advisor). Subject to the applicable reporting obligations and informational requirements under the 1934 Act and applicable state law, in order to protect the sensitive nature of certain non-public information, the Company or the Advisor may keep confidential and not provide to stockholders information concerning an investment that it deems necessary or in the best interests of the Company. In addition, subject to the applicable reporting obligations and informational requirements under the 1934 Act and applicable state law, the Company and/or the Advisor may keep confidential from stockholders any such information the disclosure of which (i) the Company, the Advisor or any of their respective affiliates is required by law, agreement or otherwise to keep confidential; or (ii) the Company and/or the Advisor reasonably believes may have an adverse effect on (a) the ability to entertain, negotiate or consummate an investment or potential investment; (b) the Company, the Advisor or any of their respective affiliates; or (c) any person that is the subject of any investment or potential investment. With respect to any stockholder that is subject to, or believes that it is subject to, any "freedom of information," "sunshine" or other law, rule or regulation that imposes upon such stockholder an obligation to make certain information available to the public, the Company will request confidential treatment, to the maximum extent permitted under such law, rule or regulation, of all non-public information provided to such stockholder. Each stockholder will agree not to release any non-public information pursuant to any law, rule or regulation, including any "freedom of information," "sunshine" or similar law, without, to the maximum extent permitted by applicable law, first giving the Company at least 30 days' notice and providing the Company with its reasonable cooperation in contesting, eliminating or otherwise mitigating the obligation to make such release.

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**Part II – Other Information**

**Item 1. Legal Proceedings**

Although we may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise, as of December 31, 2022, we are currently not a party to any pending material legal proceedings.

**Item 1A. Risk Factors**

There have been no material changes from the risk factors previously disclosed in our most recent annual report on Form 10-K, as filed with the Securities and Exchange Commission on March 2, 2022, except as below.

**Market disruptions and other geopolitical or macroeconomic events could create market volatility that negatively impact our business, financial condition and earnings.**

Periods of market volatility remain, and may continue to occur in the future, in response to various political, social and economic events both within and outside of the U.S. These conditions have resulted in, and in many cases continue to result in, greater price volatility, less liquidity, widening credit spreads and a lack of price transparency, with many securities remaining illiquid and of uncertain value. Such market conditions may adversely affect the Company, including by making valuation of some of the Company's securities uncertain and/or result in sudden and significant valuation increases or declines in the Company's holdings. If there is a significant decline in the value of the Company's portfolio, this may impact the asset coverage levels for the Company's outstanding leverage.

Risks resulting from any future debt or other economic crisis could also have a detrimental impact on the global economic recovery, the financial condition of financial institutions and our business, financial condition and results of operation. Market and economic disruptions have affected, and may in the future affect, consumer confidence levels and spending, personal bankruptcy rates, levels of incurrence and default on consumer debt and home prices, among other factors. To the extent uncertainty regarding the U.S. or global economy negatively impacts consumer confidence and consumer credit factors, our business, financial condition and results of operations could be significantly and adversely affected. Downgrades to the credit ratings of major banks could result in increased borrowing costs for such banks and negatively affect the broader economy. Moreover, Federal Reserve policy, including with respect to certain interest rates, may also adversely affect the value, volatility and liquidity of dividend- and interest-paying securities. Market volatility, rising interest rates and/or a return to unfavorable economic conditions could impair the Company's ability to achieve its investment objectives.

The occurrence of events similar to those in recent years, such as localized wars, instability, new and ongoing pandemics (such as COVID-19), epidemics or outbreaks of infectious diseases in certain parts of the world, natural/environmental disasters, terrorist attacks in the U.S. and around the world, social and political discord, debt crises, sovereign debt downgrades, increasingly strained relations between the U.S. and a number of foreign countries, new and continued political unrest in various countries, the exit or potential exit of one or more countries from the EU or the EMU, continued changes in the balance of political power among and within the branches of the U.S. government, government shutdowns, among others, may result in market volatility, may have long term effects on the U.S. and worldwide financial markets, and may cause further economic uncertainties in the U.S. and worldwide. In particular, the consequences of the conflict between Russia and Ukraine, including international sanctions, the potential impact on inflation and increased disruption to supply chains and energy resources may impact our portfolio companies, result in an economic downturn or recession either globally or locally in the U.S. or other economies, reduce business activity, spawn additional conflicts (whether in the form of traditional military action, reignited "cold" wars or in the form of virtual warfare such as cyberattacks) with similar and perhaps wider ranging impacts and consequences and have an adverse impact on the Company's returns and net asset value. Such consequences also may increase our funding cost or limit our access to the capital markets.

The current political climate has intensified concerns about a potential trade war between China and the U.S., as each country has imposed tariffs on the other country's products. These actions may trigger a significant reduction in international trade, the oversupply of certain manufactured goods, substantial price reductions of goods and possible failure of individual companies and/or large segments of China's export industry, which could have a negative impact on our performance. U.S. companies that source material and goods from China and those that make large amounts of sales in China would be particularly vulnerable to an escalation of trade tensions. Uncertainty regarding the outcome of the trade tensions and the potential for a trade war could cause the U.S. dollar to decline against safe haven currencies, such as the Japanese yen and the euro. Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be imposed or other escalating actions may be taken in the future. Any of these effects could have a material adverse effect on our business, financial condition and results of operations.

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**Rising interest rates or changes in interest rates may adversely affect the value of our portfolio investments which could have an adverse effect on our business, financial condition and results of operations.**

Our debt investments are generally based on floating rates, such as London Interbank Offer Rate ("LIBOR"), EURIBOR, Secured Overnight Financing Rate ("SOFR"), the Federal Funds Rate or the Prime Rate. General interest rate fluctuations may have a substantial negative impact on our investments, the value of our common stock and our rate of return on invested capital. A reduction in the interest rates on new investments relative to interest rates on current investments could also have an adverse impact on our net interest income. While we generally expect to invest a limited percentage of our assets in instruments with a fixed interest rate, including subordinated loans, senior and junior secured and unsecured debt securities and loans and high yield bonds, an increase in interest rates could decrease the value of those fixed rate investments. Rising interest rates may also increase the cost of debt for our underlying portfolio companies, which could adversely impact their financial performance and ability to meet ongoing obligations to the Company. Also, an increase in interest rates available to investors could make investment in our common stock less attractive if we are not able to increase our dividend rate, which could reduce the value of our common stock.

Because we have borrowed money, and may issue preferred stock to finance investments, our net investment income depends, in part, upon the difference between the rate at which we borrow funds or pay distributions on preferred stock and the rate that our investments yield. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In this period of rising interest rates, our cost of funds may increase except to the extent we have issued fixed rate debt or preferred stock, which could reduce our net investment income.

You should also be aware that a change in the general level of interest rates can be expected to lead to a change in the interest rate we receive on many of our debt investments. Accordingly, a change in the interest rate could make it easier for us to meet or exceed the performance threshold and may result in a substantial increase in the amount of Incentive Fees payable to our Advisor with respect to the portion of the Incentive Fee based on income.

Interest rates have risen in recent months, and the risk that they may continue to do so is pronounced.

**We are subject to risks related to inflation.** 

Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. Recently, inflation has increased to its highest level in decades. As inflation increases, the real value of our shares and distributions therefore may decline. In addition, during any periods of rising inflation, interest rates of any debt securities issued by the Company would likely increase, which would tend to further reduce returns to shareholders. Inflation rates may change frequently and significantly as a result of various factors, including unexpected shifts in the domestic or global economy and changes in economic policies, and our investments may not keep pace with inflation, which may result in losses to our shareholders. This risk is greater for fixed-income instruments with longer maturities

**We are subject to credit risk related to investments in our portfolio companies and with our financial institutions and counterparties**

The Company has investments in lower rated and comparable quality unrated senior and junior secured, unsecured and subordinated debt securities and loans, which are subject to a greater degree of credit risk than more highly rated investments. The risk of loss due to default by the issuer is significantly greater for holders of such securities and loans, particularly in cases where the investment is unsecured or subordinated to other creditors of the issuer.

The Company may be exposed to counterparty credit risk, or the risk that an entity with which the Company has unsettled or open transactions may fail to or be unable to perform on its commitments. The Company manages counterparty risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Company to market, issuer and counterparty credit risks, consist principally of investments in portfolio companies. The extent of the Company's exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their fair value recorded in the Consolidated Statements of Assets and Liabilities. The Company is also exposed to credit risk related to maintaining all of its cash at a major financial institution.

**Item 1B. Unresolved Staff Comments**

None

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**Item 2. Properties**

We do not own any real estate or other physical properties materially important to our operation. Our executive offices are located at 2951 28<sup>th</sup> Street Suite 1000, Santa Monica, CA 90405, and are provided by the Advisor in accordance with the terms of the Administration Agreement. We believe that our office facilities are suitable and adequate for our business as it is contemplated to be conducted.

**Item 3. Legal Proceedings**

We and the Advisor are not currently subject to any material pending or threatened legal proceedings against us. From time to time, we may be a party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our business, financial condition or results of operations.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities**

Shares of our common stock have been and may be offered and sold in transactions exempt from registration under the Securities Act under Section 4(a)(2) and Regulation D. There is no public market for shares of our common stock. Because shares of our common stock have been and may be acquired by investors in one or more transactions "not involving a public offering," they are "restricted securities" and may be required to be held indefinitely. Stockholders may not transfer any shares of common stock unless (i) the Advisor gives consent, and (ii) the transfer is made in accordance with applicable securities laws and the governing documents of the Company.

The Company expects to enter into separate subscription agreements with investors providing for the private placement of shares of common stock and it first entered into subscription agreements with investors on the Initial Closing Date, December 11, 2020. The subscription agreements set forth, among other things, the terms and conditions upon which the investors will purchase shares of common stock, the circumstances under which the Company may draw down capital from investors, certain covenants that all investors must agree to, and the remedies available to the Company in the event that an investor defaults on its obligation to make Capital Commitments. In addition, the subscription agreement includes a questionnaire designed to ensure that all investors are either (i) "accredited investors," as defined in Rule 501 of Regulation D under the Securities Act, or (ii) in the case of shares sold outside the United States, persons that are not "U.S. persons" in accordance with Regulation S under the Securities Act.

While the Company expects each subscription agreement to reflect the terms and conditions summarized in the following paragraphs, the Company reserves the right to enter into subscription agreements that contain terms and conditions not found in the subscription agreements entered into with other investors, subject to applicable law.

Pursuant to subscription agreements investors make Capital Commitments to purchase shares of common stock. The subscription agreements provide that investors are required to fund capital contributions to purchase shares of common stock, each time the Company delivers a drawdown notice, which the Company will deliver at least ten calendar days prior to the date on which contributions will be due, provided that the initial Drawdown Purchase occurred on the Initial Closing Date. Drawdown Purchases are allocated among investors with unfunded Capital Commitments in amounts proportional to the Capital Commitment of each investor.

The offering price per share of common stock at the initial Drawdown Purchase was $10.00. Following the initial Drawdown Purchase, the Company issues shares of common stock at a price based on net asset value per share as determined as of the end of the most recent fiscal quarter for which net asset value has been determined prior to the Drawdown Purchase date in accordance with the valuation policies adopted by the board of directors, subject to adjustment from the latest quarterly valuation date in accordance with the Company's valuation policies and subject to Section 23 of the 1940 Act (which generally prohibits the Company from issuing shares of common stock at a price below the then-current net asset value of the shares of common stock as determined within 48 hours, excluding Sundays and holidays, of such issuance) in an amount equal to the percentage of the Capital Commitments specified by the Company in the drawdown notice.

The Company may accept additional Capital Commitments to purchase shares of common stock at subsequent closings from existing and additional investors until the Final Closing Date, which is 18 months after the Initial Closing Date; provided that with approval of a majority of the then outstanding shares of common stock, the Company may extend the Final Closing Date for up to an additional six (6) months (i.e., the offering period may conclude 24 months after the Initial Closing Date).

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As of December 31, 2022, we have sold 17,459,576 Shares for an aggregate offering price of $180.6 million, gross of offering costs.

**Distributions**

Our quarterly dividends and distributions to common stockholders are recorded on the ex-dividend date and are determined by our board of directors. Distributions are declared considering our estimate of annual taxable income available for distribution to stockholders and the amount of taxable income carried over from the prior year for distribution in the current year. We do not have a policy to pay distributions at a specific level and expect to continue to distribute substantially all of our taxable income. Changes in investment results or focus, expense levels and other factors may have an effect on the amount of distributions we pay in the future. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

The following table summarizes the Company's dividends declared and paid for the year ended December 31, 2022:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Type** | **Amount Per Share** | **Total Amount** |
| May 16, 2022 | June 16, 2022 | June 30, 2022 | Regular | $0.12 | $1401289 |
| July 28, 2022 | September 16, 2022 | September 30, 2022 | Regular | $0.17 | $2500426 |
| October 27, 2022 | December 16, 2022 | December 30, 2022 | Regular | $0.19 | $3386931 |
| December 15, 2022 | December 29, 2022 | January 12, 2023 | Regular | $0.25 | $4350000 |
|  |  |  |  | $0.73 | $11638646 |

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Tax characteristics of all dividends are reported to stockholders on Form 1099-DIV or Form 1042-S after the end of the calendar year.

We have elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain favorable RIC tax treatment, we must distribute annually to our stockholders at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. In order to avoid certain excise taxes imposed on RICs, we must distribute during each calendar year an amount at least equal to the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•98% of our ordinary income (not taking into account any capital gains or losses) for the calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•98.2% of the amount by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for the one-year period generally ending on October 31 of the calendar year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain undistributed amounts from previous years on which we paid no U.S. federal income tax.

We may, at our discretion, carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. If we choose to do so, all other things being equal, this would increase expenses and reduce the amounts available to be distributed to our stockholders. We will accrue excise tax on estimated taxable income as required. In addition, although we currently intend to distribute realized net capital gains (i.e., net long-term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment.

We may not be able to achieve operating results that will allow us to make dividends and distributions at a specific level or to increase the amount of these dividends and distributions from time to time. Also, we may be limited in our ability to make dividends and distributions due to the asset coverage test applicable to us as a BDC under the 1940 Act and due to provisions in our existing and future credit facilities. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of favorable RIC tax treatment. In addition, in accordance with U.S. generally accepted accounting principles and tax regulations, we include in income certain amounts that we have not yet received in cash, such as PIK interest, which represents contractual interest added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC and may be subject to an excise tax.

In order to satisfy the annual distribution requirement applicable to RICs, we have the ability to pay a large portion of a dividend in shares of our common stock instead of in cash. As long as a sufficient portion of such dividend is paid in cash (which portion can generally be as low as 20%) and certain requirements are met, the entire distribution would be treated as a dividend for U.S. federal income tax purposes.

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**Item 6. [Reserved]**

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**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations**

The information contained in this section should be read in conjunction with our audited financial statements and related notes thereto appearing elsewhere in this annual report on Form 10-K. Some of the statements in this report (including in the following discussion) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or the future performance or financial condition of BlackRock Direct Lending Corp. (the "Company," "we," "us" or "our"). The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our, or our portfolio companies', future business, operations, operating results or prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the return or impact of current and future investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of a protracted decline in the liquidity of credit markets on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of fluctuations in interest rates on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of changes in laws or regulations governing our operations or the operations of our portfolio companies;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the general economy and its impact on the industries in which we invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our expected financings and investments;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of our investment advisor to locate suitable investments for us and to monitor and administer our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of cash flows, if any, from the operations of our portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing, form and amount of any dividend distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the phase-out of LIBOR and the use of replacement rates for LIBOR the consequences of the conflict between Russia and Ukraine, including international sanctions, the porential impact on inflation and increased disruption to supply chains; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to maintain our qualification as a RIC and as a business development company.

We use words such as "anticipate," "believe," "expect," "intend," "will," "should," "could," "may," "plan" and similar words to identify forward-looking statements. The forward looking statements contained in this quarterly report involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth as "Risk Factors" in this report.

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, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the SEC, including annual reports on Form 10-K, registration statements on Form 10, quarterly reports on Form 10-Q and current reports on Form 8-K.

**Overview**

The Company is a Delaware corporation formed on October 12, 2020 and is an externally managed, closed-end, non-diversified management investment company. We have elected to be regulated as a BDC under the 1940 Act. Our investment objective is to achieve high risk-adjusted returns produced primarily from current income generated by investing primarily in senior secured corporate debt instruments. We seek to achieve our investment objective through investments in privately-originated, performing senior secured debt primarily in North America-based companies with target enterprise values between $100 million and $1.5 billion. Performing debt is debt that at the time of investment is not defaulted or, in the view of the Advisor, distressed. The Company targets positions in first lien, second lien and unitranche debt, with a preference for floating-rate debt, which the Advisor believes provides flexibility to adapt to changing market conditions. The Company may invest in securities of any maturity and credit quality. Our investment activities will benefit from what we believe are the competitive advantages of our Advisor, including its diverse in-house skills, proprietary deal flow, and consistent and rigorous investment process focused on established, middle-market companies.

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The Company has elected to be treated as a RIC for U.S. federal income tax purposes. As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements.

To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements and timely distribute to our stockholders generally at least 90% of our investment company taxable income, as defined by the Code, for each year. Pursuant to this election, we generally will not have to pay corporate level taxes on any income that we distribute to our stockholders provided that we satisfy those requirements.

**Investments**

Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity, the general economic environment and the competitive environment for the types of investments we make.

As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in "qualifying assets," including securities and indebtedness of private U.S. companies, public U.S. operating companies whose securities are not listed on a national securities exchange or registered under the 1934 Act, as amended, (the "Exchange Act"), public domestic operating companies having a market capitalization of less than $250.0 million, cash, cash equivalents, U.S. Government securities and high-quality debt investments that mature in one year or less. We are also permitted to make certain follow-on investments in companies that were eligible portfolio companies at the time of initial investment but that no longer meet the definition. As of December 31, 2022, 85.9% of our total assets were invested in qualifying assets.

**Revenues**

We generate revenues primarily in the form of interest on the debt we hold. We also generate revenue from dividends on our equity interests, capital gains on the disposition of investments, and certain lease, fee, and other income. Our investments in fixed income instruments generally have an expected maturity of three to five years, although we have no lower or upper constraint on maturity. Interest on our debt investments is generally payable quarterly or semi-annually. Payments of principal of our debt investments may be amortized over the stated term of the investment, deferred for several years or due entirely at maturity. In some cases, our debt investments and preferred stock investments may defer payments of cash interest or dividends or PIK. Any outstanding principal amount of our debt investments and any accrued but unpaid interest will generally become due at the maturity date. In addition, we may generate revenue in the form of prepayment fees, commitment, origination, structuring or due diligence fees, end-of-term or exit fees, fees for providing significant managerial assistance, consulting fees and other investment related income.

**Expenses**

The Company is responsible for paying the compensation of the Advisor. In addition, the Company is generally responsible for all operating expenses of the Company, and shall pay, and shall reimburse the Advisor or the Administrator and their respective affiliates for, all fees, costs, expenses, liabilities and obligations of the Company relating or attributable to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•calculating our net asset value (including the cost and expenses of any independent valuation firms);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•interest payable on debt, if any, incurred to finance our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the base management fee and any incentive fee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•dividends and distributions on our shares of common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•administration fees payable under the administration agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fees payable to third parties relating to, or associated with, making investments;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•registration fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•director fees and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs of preparing and filing reports or other documents with the SEC;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs of any reports, proxy statements or other notices to our stockholders, including printing costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our fidelity bond;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•directors and officers/errors and omissions liability insurance, and any other insurance premiums;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•indemnification payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•direct costs and expenses of administration, including audit and legal costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•all other expenses reasonably incurred by us and the Administrator in connection with administering our business, such as the allocable portion of overhead under the administration agreement, including rent and other allocable portions of the cost of certain of our officers and their respective staffs.

The investment management agreement provides that the base management fee be calculated at an annual rate of 0.90% of our total assets (excluding cash and cash equivalents) on the last day of each preceding calendar quarter and is payable quarterly in arrears. For purposes of calculating the base management fee, "total assets" is determined without deduction for any borrowings or other liabilities. No base management fee is payable for the period from the date of the initial drawdown purchase through the end of the first calendar quarter after the initial drawdown purchase. Subsequently, the base management fee is calculated based on the value of our total assets (excluding cash and cash equivalents) at the end of the most recently completed calendar quarter. The base management fee for any partial quarter is appropriately prorated.

Additionally, the investment management agreement provides that the Advisor or its affiliates may be entitled to incentive fee under certain circumstances. According to the terms of such agreement, the incentive fee equals the sum of (i) 12.5% of all net investment income and (ii) 12.5% of all net realized capital gains (net of any net unrealized capital depreciation) less net investment income incentive fee and capital gains incentive fee previously paid. However, incentive fee will only be paid to the extent the cumulative total return of the Company after incentive fee and including such payment would equal or exceed a 6% annual return on daily weighted-average contributed common equity. The determination of incentive fee is subject to limitations under the 1940 Act and the Advisers Act.

**Critical accounting policies and estimates**

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. Management considers the following critical accounting policies important to understanding the financial statements. In addition to the discussion below, our critical accounting policies are further described in the notes to our financial statements.

**Valuation of portfolio investments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Rule 2a-5 (the "Rule") under the 1940 Act, the Board of Directors designated the Advisor as the Company's valuation designee (the "Valuation Designee") to perform certain fair value functions, including performing fair value determinations and has approved policies and procedures adopted by the Advisor to seek to ensure compliance with the requirements of the Rules.

We value our portfolio investments at fair value based upon the principles and methods of valuation set forth in policies and procedures reviewed and approved by a committee established by the Valuation Designee (the "Valuation Committee") and approved by the board of directors. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Market participants are buyers and sellers in the principal (or most advantageous) market for the asset that (i) are independent of us, (ii) are knowledgeable, having a reasonable understanding about the asset based on all available information (including information that might be obtained through due diligence efforts that are usual and customary), (iii) are able to transact for the asset, and (iv) are willing to transact for the asset or liability (that is, they are motivated but not forced or otherwise compelled to do so).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments for which market quotations are readily available are valued at such market quotations unless the quotations are deemed not to represent fair value. We generally obtain market quotations from recognized exchanges, market quotation systems, independent pricing services or one or more broker-dealers or market makers. However, short term debt investments with original maturities of generally three months or less are valued at amortized cost, which approximates fair value. Debt and equity securities for which market quotations are not readily available, which is the case for many of our investments, or for which market quotations are deemed not to represent fair value, are valued at fair value using a consistently applied valuation process in accordance with our documented valuation policies and procedures reviewed and approved by the Valuation Committee. Due to the inherent uncertainty

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and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from the values that we may ultimately realize. In addition, changes in the market environment and other events may have differing impacts on the market quotations used to value some of our investments than on the fair values of our investments for which market quotations are not readily available. Market quotations may be deemed not to represent fair value in certain circumstances where we believe that facts and circumstances applicable to an issuer, a seller or purchaser, or the market for a particular security cause current market quotations to not reflect the fair value of the security. Examples of these events could include cases where a security trades infrequently causing a quoted purchase or sale price to become stale, where there is a "forced" sale by a distressed seller, where market quotations vary substantially among market makers, or where there is a wide bid-ask spread or significant increase in the bid-ask spread.

The valuation process approved by the Valuation Designee with respect to investments for which market quotations are not readily available or for which market quotations are deemed not to represent fair value is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The investment professionals of the Valuation Designee provide recent portfolio company financial statements and other reporting materials to independent valuation firms approved by Valuation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Such firms evaluate this information along with relevant observable market data to conduct independent appraisals each quarter, and their preliminary valuation conclusions are documented and discussed with senior management of the Valuation Designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The fair value of smaller investments comprising in the aggregate less than 5% of our total capitalization may be determined by the Advisor in good faith in accordance with our valuation policy without the employment of an independent valuation firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Valuation Designee determines the fair value of the remainder of investments in our portfolio in good faith based on

the input of the Valuation Committee and the respective independent valuation firms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Those investments for which market quotations are not readily available or for which market quotations are deemed not to represent fair value are valued utilizing one or more methodologies, including the market approach, the income approach, or in the case of recent investments, the cost approach, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that the Valuation Designee may take into account in determining the fair value of our investments include, as relevant and among other factors: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company's ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition comparables, our principal market (as the reporting entity) and enterprise values.

When valuing all of our investments, we strive to maximize the use of observable inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances.

Our investments may be categorized based on the types of inputs used in their valuation. The level in the GAAP valuation hierarchy in which an investment falls is based on the lowest level input that is significant to the valuation of the investment in its entirety. Investments are classified by GAAP into the three broad levels as follows:

Level 1 — Investments valued using unadjusted quoted prices in active markets for identical assets.

Level 2 — Investments valued using other unadjusted observable market inputs, e.g. quoted prices in markets that are not active or quotes for comparable instruments.

Level 3 — Investments that are valued using quotes and other observable market data to the extent available, but which also take into consideration one or more unobservable inputs that are significant to the valuation taken as a whole.

As of December 31, 2022, none of our investments were categorized as Level 1, 4.7% were categorized as Level 2 and 95.3% were Level 3 investments valued based on valuations by independent third-party sources.

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As of December 31, 2021, none of our investments were categorized as Level 1, 6.7% were categorized as Level 2 and 93.3% were Level 3 investments valued based on valuations by independent third-party sources.

Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on the financial statements.

**Revenue recognition**

Interest and dividend income, including income paid in kind, is recorded on an accrual basis, when such amounts are considered collectible. Origination, structuring, closing, commitment and other upfront fees, including original issue discounts, earned with respect to capital commitments are generally amortized or accreted into interest income over the life of the respective debt investment, as are end-of-term or exit fees receivable upon repayment of a debt investment. Other fees, including certain amendment fees, prepayment fees and commitment fees on broken deals, are recognized as earned. Prepayment fees and similar income due upon the early repayment of a loan or debt security are recognized when earned and are included in interest income.

Certain of our debt investments are purchased at a discount to par as a result of the underlying credit risks and financial results of the issuer, as well as general market factors that influence the financial markets as a whole. Discounts on the acquisition of corporate bonds are generally amortized using the effective-interest or constant-yield method assuming there are no questions as to collectability. When principal payments on a loan are received in an amount in excess of the loan's amortized cost, the excess principal payments are recorded as interest income.

**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, without regard to unrealized appreciation or depreciation previously recognized. Realized gains and losses are computed using the specific identification method. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

**Portfolio and investment activity**

During the year ended December 31, 2022, we invested approximately $116.0 million, comprised of investments in 48 new and 11 existing portfolio companies. Of these investments, $116.0 million, or 100.0% of total acquisitions, were in senior secured loans. Additionally, we received approximately $13.2 million in proceeds from sales or repayments of investments during the year ended December 31, 2022.

During the year ended December 31, 2021, we invested approximately $116.9 million, comprised of investments in 56 new portfolio companies. Of these investments, $116.9 million, or 100.0% of total acquisitions, were in senior secured loans. Additionally, we received approximately $4.3 million in proceeds from sales or repayments of investments during the year ended December 31, 2021.

At December 31, 2022, our investment portfolio of $213.4 million (at fair value) consisted of 101 portfolio companies and was invested 99.7% in senior secured loans and 0.3% in equity investments. Our average portfolio company investment at fair value was approximately $2.0 million. Our largest portfolio company investment by value was approximately 2.8% of our portfolio and our five largest portfolio company investments by value comprised approximately 11.5% of our portfolio at December 31, 2021.

At December 31, 2021, our investment portfolio of $116.5 million (at fair value) consisted of 57 portfolio companies and was invested 99.4% in senior secured loans and 0.6% in equity investments. Our average portfolio company investment at fair value was approximately $2.0 million. Our largest portfolio company investment by value was approximately 4.6% of our portfolio and our five largest portfolio company investments by value comprised approximately 20.0% of our portfolio at December 31, 2021.

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The industry composition of our portfolio at fair value at December 31, 2022 was as follows:

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| | |
|:---|:---|
| **Industry** | **Percent of Total Investments** |
| Software | 21.7% |
| Diversified Financial Services | 11.4% |
| Internet Software & Services | 11.1% |
| Professional Services | 8.3% |
| Diversified Consumer Services | 7.3% |
| Insurance | 4.5% |
| Health Care Providers & Services | 4.0% |
| IT Services | 3.8% |
| Construction & Engineering | 2.7% |
| Media | 2.6% |
| Health Care Technology | 2.3% |
| Road & Rail | 2.3% |
| Real Estate Management & Development | 2.1% |
| Wireless Telecommunication Services | 2.0% |
| Paper & Forest Products | 1.9% |
| Consumer Finance | 1.8% |
| Specialty Retail | 1.6% |
| Commercial Services & Supplies | 1.4% |
| Internet & Catalog Retail | 1.1% |
| Construction Materials | 1.1% |
| Other | 5.0% |
| **Total** | **100.0%** |

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The weighted average effective yield of our debt and total portfolio was 12.3% at December 31, 2022 and 8.2% at December 31, 2021. At December 31, 2022, 99.6% of debt investments in our portfolio bore interest based on floating rates, such as SOFR, LIBOR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 0.4% of debt investments bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 98.2% at December 31, 2022. No debt investments in the portfolio company were on non-accrual status as of December 31, 2022. At December 31, 2021, 99.3% of debt investments in our portfolio bore interest based on floating rates, such as LIBOR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 0.7% of debt investments bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 96.5% at December 31, 2021. No debt investments in the portfolio company were on non-accrual status as of December 31, 2021.

**Results of operations**

**Investment income**

Investment income totaled $16.7 million, $4.6 million, and $0.0 million, respectively, for the years ended December 31, 2022, 2021, and for the period from November 30, 2020 to December 31, 2020, of which $16.5 million, $4.6 million and $0.0 million were attributable to interest and fees on our debt investments, and $0.2 million, $0.0 million and $0.0 million to other income, respectively. The increase in investment income for the year ended December 31, 2022 compared to the year ended December 31, 2021 primarily reflects the increase in portfolio size as the Company continues to ramp up.

**Expenses**

Total operating expenses for the years ended December 31, 2022, 2021 and for the period from November 30, 2020 to December 31, 2020 were $4.6 million, $2.4 million and $0.2 million, respectively, comprised of $1.9 million, $0.4 million and $0.0 million in interest and other debt expenses, $1.4 million, $0.4 million and $0.0 million in management fees, $0.4 million, $0.4 million and $0.1 million in professional fees, $0.4 million, $0.4 million and $0.0 million in administrative expenses, $0.2 million, $0.3 million and $0.0 million in incentive fees, ($0.2) million, $0.2 million and $0 in accrued incentive fees on capital gains, $0.0 million, $0.0 million and $0.1 million in organizational expenses, and $0.5 million, $0.3 million and $0.1 million in other expenses, respectively. The increase in expenses in the year ended December 31, 2022 compared to the year ended December 31, 2021 primarily reflects the increase in all Company activities as the Company continues to ramp up.

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**Net investment income (loss)**

Net investment income (loss) was $12.1 million, $2.2 million and $(0.2) million, respectively for the years ended December 31, 2022, 2021 and for the period from November 30, 2020 to December 31, 2020.

**Net realized and unrealized gain or loss**

Net realized gain (loss) for the years ended December 31, 2022, 2021 and for the period from November 30, 2020 to December 31, 2020 was $0.0 million, $(0.0) million and $0.0 million, respectively.

For the years ended December 31, 2022, 2021 and period from November 30, 2020 to December 31, 2020, the change in net unrealized appreciation (depreciation) was $(7.1) million, $1.7 million and $(0.0) million, respectively. The change in net unrealized appreciation (depreciation) for the year ended December 31, 2022 was primarily driven by $(0.6) million unrealized depreciation in our investment in Razor Gmbh (Germany), $(0.6) million on our investment in Magenta Buyer LLC (McAfee), and $(0.6) million on our investment in INH Buyer Inc as well as unrealized losses across the portfolio from widening market spreads, partially offset by $0.2 million unrealized gains on our investment in Integrity Marketing Acquisition, LLC. The change in net unrealized appreciation (depreciation) for the year ended December 31, 2021 was primarily driven by $0.9 million unrealized gains on our investment in Razor Group, $0.2 million on our investment in Job and Talent USA and other unrealized gains across the portfolio, partially offset by a $(0.1) million net unrealized depreciation on INH Buyer, Inc. The change in net unrealized appreciation (depreciation) for the period from November 30, 2020 to December 31, 2020 was attributed entirely to our sole investment in Juice Plus.

**Incentive compensation**

For the year ended December 31, 2022, $0.2 million in incentive fees earned were accrued due to our performance exceeding the cumulative total return threshold and $0.5 million in incentive fees earned were paid. In addition, we reversed the accrual of $0.2 million as a reserve for incentive fees on capital gains based on a hypothetical liquidation basis in accordance with GAAP. For the year ended December 31, 2021, $0.3 million in incentive fees earned were payable due to our performance exceeding the total return threshold. In addition, we accrued $0.2 million as a reserve for incentive fees on capital gains based on a hypothetical liquidation basis in accordance with GAAP. There were no incentive fees paid or accrued as our performance did not exceed the cumulative total return threshold for the period from November 30, 2020 to December 31, 2020.

**Income tax expense, including excise tax**

The Company has elected to be treated as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, the Company must, among other things, timely distribute to its stockholders generally at least 90% of its investment company taxable income, as defined by the Code, for each year. The Company has made and intends to continue to make the requisite distributions to its stockholders which will generally relieve the Company from U.S. federal income taxes.

Depending on the level of taxable income earned in a tax year, we may choose to carry forward taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income. Any excise tax expense is incurred at year end as such amounts are known. For the years ended December 31, 2022, 2021, and for the period from November 30, 2020 to December 31, 2020 there was no expense incurred for U.S. Federal excise tax.

**Net increase (decrease) in net assets resulting from operations**

The net increase (decrease) in net assets applicable to common stockholders resulting from operations was $4.9 million, $3.8 million and $(0.2) million, respectively, for the years ended December 31, 2022, 2021 and for the period from November 30, 2020 to December 31, 2020.

**Liquidity and capital resources**

Our liquidity and capital resources are expected to be generated primarily through the initial private placement of shares of the Company's common stock, borrowings under the Capital Call Facility, and cash flows from operations, including investments sales and repayments and income earned from investments and cash equivalents. The primary uses of cash have been investments in portfolio companies, payments to service our debt and other general corporate purposes.

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The following table summarizes the total shares issued and proceeds received in connection with the Company's private placement for the years ended December 31, 2022, 2021 and for the period from November 30, 2020 (Inception) to December 31, 2020.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **For the period from November 30 (inception) to December 31** |
|  | **2022** | **2021** | **2020** |
| Shares Issued | 9087597 | 5361979 | 3010000 |
| Average Price Per Share | $10.49 | $10.29 | $10.00 |
| Proceeds (1) | $95227460 | $55134766 | $30077202 |

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(1)Net of offering costs of $89,207, $48,567 and $22,798, respectively for the years ended December 31, 2022, 2021 and the period from November 30, 2020 to December 31, 2020.

On June 18, 2021, the Company entered into the Capital Call Facility with Sumitomo Mitsui Banking Corporation as administrative agent, lead arranger and as a lender, with a capacity of up to $75 million, secured by the unfunded equity commitments of the Company's investors. The Capital Call Facility matures on June 16, 2023. Interest on the Capital Call Facility accrues at a rate equal to LIBOR plus 1.95% per annum, or, for short-term draws, a rate equal to the Prime Rate plus 0.95%, the Federal Funds Rate plus 1.45%, or one-month LIBOR plus 1.95%, whichever is highest. Commitment fees on the Capital Call Facility accrue at a rate of 0.225% per annum on the undrawn amount of the commitment. At December 31, 2022, there was $37.5 million drawn on the Capital Call Facility.

Total debt outstanding as of December 31, 2022 also included unsecured promissory notes with a principal amount of $110,000, at a rate of 12% per annum, and a maturity date of December 31, 2050.

Under Section 61(a) of the 1940 Act, prior to March 23, 2018, a BDC was generally not permitted to issue senior securities unless after giving effect thereto the BDC met a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which includes all borrowings of the BDC, of at least 200%. On March 23, 2018, the Small Business Credit Availability Act ("SBCAA") was signed into law, which among other things, amended Section 61(a) of the 1940 Act to add a new Section 61(a)(2) that reduces the asset coverage requirement applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements and obtains certain approvals. The reduced asset coverage requirement would permit a BDC to have a ratio of total outstanding indebtedness to net assets of 2:1 as compared to a maximum of 1:1 under the 200% asset coverage requirement. The Company does not currently intend to seek approval for the modified asset coverage ratio election set forth in Section 61(a)(2) of the 1940 Act, as amended by the SBCAA. As of December 31, 2022, the Company's asset coverage ratio was 564%.

Net cash used in operating activities during the year ended December 31, 2022 was $102.6 million, consisting primarily of the settlement of acquisitions of investments (net of dispositions) of $112.8 million, offset by net investment income (net of non-cash income and expenses) of approximately $10.2 million.

Net cash provided by financing activities was $103.5 million during the year ended December 31, 2022, consisting of $95.3 million proceeds from shares of common stock sold, $15.5 million credit facility draws (net of repayments), partially offset by $7.3 million in dividends paid in cash to shareholders.

At December 31, 2022, we had $2.9 million in cash and cash equivalents.

**Contractual obligations**

We have entered into several contracts under which we have future commitments. Pursuant to an investment management agreement, the Advisor manages our day-to-day operations and provides investment advisory services to us. Payments under the investment management agreement are equal to a percentage of the value of our total assets (excluding cash and cash equivalents) and an incentive fee, plus reimbursement of certain expenses incurred by the Advisor. Under our administration agreement, the Administrator provides us with administrative services, facilities and personnel. Payments under the administration agreement are equal to an allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations to us, and may include rent and our allocable portion of the cost of certain of our officers and their respective staffs. We are responsible for reimbursing the Advisor for due diligence and negotiation expenses, fees and expenses of custodians, administrators, transfer and distribution agents, counsel and directors, insurance, filings and registrations, proxy expenses, expenses of communications to investors, compliance expenses, interest, taxes, portfolio transaction expenses, costs of responding to regulatory inquiries and reporting to regulatory authorities, costs and expenses of preparing and maintaining our books and records, indemnification, litigation and other extraordinary expenses and such

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other expenses as are approved by the directors as being reasonably related to our organization, offering, capitalization, operation or administration and any portfolio investments, as applicable. The Advisor is not responsible for any of the foregoing expenses and such services are not investment advisory services under the 1940 Act. The Company may terminate each of the Investment Management Agreement and Administration Agreement without penalty upon not less than 60 days' written notice to the other party and the Advisor and the Administrator may terminate the Investment Management Agreement or Administration Agreement, as applicable, without penalty upon not less than 120 days' written notice to the other party.

**Distributions**

Our quarterly dividends and distributions to common stockholders are recorded on the ex-dividend date. Distributions are declared considering our estimate of annual taxable income available for distribution to stockholders and the amount of taxable income carried over from the prior year for distribution in the current year. We do not have a policy to pay distributions at a specific level and expect to continue to distribute substantially all of our taxable income. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

The following tables summarize dividends declared for the year ended December 31, 2022 and 2021:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Type** | **Amount Per Share** | **Total Amount** |
| May 16, 2022 | June 16, 2022 | June 30, 2022 | Regular | $0.12 | $1401289 |
| July 28, 2022 | September 16, 2022 | September 30, 2022 | Regular | $0.17 | $2500426 |
| October 27, 2022 | December 16, 2022 | December 30, 2022 | Regular | $0.19 | $3386931 |
| December 15, 2022 | December 29, 2022 | January 12, 2023 | Regular | $0.25 | $4350000 |
|  |  |  |  | $0.73 | $11638646 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Type** | **Amount Per Share** | **Total Amount** |
| August 4, 2021 | September 1, 2021 | September 15, 2021 | Regular | $0.04 | $209983 |
| November 8, 2021 | December 1, 2021 | December 15, 2021 | Regular | $0.13 | $1106497 |
| December 21, 2021 | December 23, 2021 | December 31, 2021 | Regular | $0.10 | $899998 |
|  |  |  |  | $0.27 | $2216478 |

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We have elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain favorable RIC tax treatment, we must distribute annually to our stockholders at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. In order to avoid certain excise taxes imposed on RICs, we must distribute during each calendar year an amount at least equal to the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•98% of our ordinary income (not taking into account any capital gains or losses) for the calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•98.2% of the amount by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for the one-year period generally ending on October 31 of the calendar year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain undistributed amounts from previous years on which we paid no U.S. federal income tax.

We may, at our discretion, carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. If we choose to do so, all other things being equal, this would increase expenses and reduce the amounts available to be distributed to our stockholders. We will accrue excise tax on estimated taxable income as required. In addition, although we currently intend to distribute realized net capital gains (i.e., net long-term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment.

We may not be able to achieve operating results that will allow us to make dividends and distributions at a specific level or to increase the amount of these dividends and distributions from time to time. Also, we may be limited in our ability to make dividends and distributions due to the asset coverage test applicable to us as a BDC under the 1940 Act and due to provisions in our existing and future credit facilities. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of favorable RIC tax treatment. In addition, in accordance with U.S. generally accepted accounting principles and tax regulations, we include in income certain amounts that we have not yet received in cash, such as PIK interest, which represents contractual interest added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC and may be subject to an excise tax.

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In order to satisfy the annual distribution requirement applicable to RICs, we have the ability to pay a large portion of a dividend in shares of our common stock instead of in cash. As long as a sufficient portion of such dividend is paid in cash (which portion can generally be as low as 20%) and certain requirements are met, the entire distribution would be treated as a dividend for U.S. federal income tax purposes.

**Related Parties**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company has entered into an investment management agreement with the Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Administrator provides us with administrative services necessary to conduct our day-to-day operations. For providing these services, facilities and personnel, the Administrator may be reimbursed by us for expenses incurred by the Administrator in performing its obligations under the administration agreement, including our allocable portion of the cost of certain of our officers and the Administrator's administrative staff and providing, at our request and on our behalf, significant managerial assistance to our portfolio companies to which we are required to provide such assistance. The Administrator is an affiliate of the Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We have entered into a royalty-free license agreement with BlackRock and the Advisor, pursuant to which each of BlackRock and the Advisor has agreed to grant us a non-exclusive, royalty-free license to use the name "BlackRock".

The Advisor and its affiliates, employees and associates currently do and in the future may manage other funds and accounts. The Advisor and its affiliates may determine that an investment is appropriate for us and for one or more of those other funds or accounts. Accordingly, conflicts may arise regarding the allocation of investments or opportunities among us and those accounts. In general, the Advisor will allocate investment opportunities pro rata among us and the other funds and accounts (assuming the investment satisfies the objectives of each) based on the amount of committed capital each then has available. The allocation of certain investment opportunities in private placements is subject to independent director approval pursuant to the terms of the co-investment exemptive order applicable to us. In certain cases, investment opportunities may be made other than on a pro rata basis. For example, we may desire to retain an asset at the same time that one or more other funds or accounts desire to sell it or we may not have additional capital to invest at a time the other funds or accounts do. If the Advisor is unable to manage our investments effectively, we may be unable to achieve our investment objective. In addition, the Advisor may face conflicts in allocating investment opportunities between us and certain other entities that could impact our investment returns. While our ability to enter into transactions with our affiliates is restricted under the 1940 Act, we have received an exemptive order from the SEC permitting certain affiliated investments subject to certain conditions. As a result, we may face conflict of interests and investments made pursuant to the exemptive order conditions which could in certain circumstances affect adversely the price paid or received by us or the availability or size of the position purchased or sold by us.

**Recent Developments**

From January 1, 2023 through February 24, 2023, the Company has invested approximately $7.1 million primarily in 12 senior secured loans with a combined effective yield of approximately 13.56%.

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**Item 7A. Quantitative and Qualitative Disclosures About Market Risk**

We are subject to financial market risks, including changes in interest rates. At December 31, 2022, 99.6% of debt investments in our portfolio bore interest based on floating rates, such as SOFR, LIBOR, EURIBOR, the Federal Funds Rate or the Prime Rate. The interest rates on such investments generally reset by reference to the current market index after one to six months. At December 31, 2021, the percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 99.3%. Floating rate investments subject to a floor generally reset by reference to the current market index after one to six months only if the index exceeds the floor.

Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. We assess our portfolio companies periodically to determine whether such companies will be able to continue making interest payments in the event that interest rates increase. There can be no assurances that the portfolio companies will be able to meet their contractual obligations at any or all levels of increases in interest rates.

Based on our Statement of Assets and Liabilities as of December 31, 2022, the following table shows the annual impact on net investment income (excluding the related incentive fee impact) of base rate changes in interest rates (considering interest rate floors for variable rate instruments and the fact that our assets and liabilities may not have the same base rate period as assumed in this table) assuming no changes in our investment and borrowing structure:

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| | | |
|:---|:---|:---|
| **Basis Point Change** | **Net Investment Income** | **Net Investment Income <br>Per Share** |
| Up 300 basis points | $5536411 | $0.32 |
| Up 200 basis points | 3686534 | 0.21 |
| Up 100 basis points | 1836657 | 0.11 |
| Down 100 basis points | (1814692) | (0.10) |
| Down 200 basis points | (3629384) | (0.21) |
| Down 300 basis points | (5442072) | (0.31) |

---

------

**Item 8. Financial Statements and Supplementary Data**

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | Page |
| [<u>Report of Independent Registered Public Accounting Firm (PCAOB ID</u> 34<u>)</u>](#audit_opinion) | 82 |
| [<u>Statements of Assets and Liabilities as of December 31, 2022 and 2021</u>](#statements_assets_liabilities_) | 83 |
| [<u>Statements of Operations for the year ended December 31, 2022, 2021 and for the period from November 30, 2020 (Inception) to December 31, 2020</u>](#statements_operations_unaudited) | 84 |
| [<u>Statements of Changes in Net Assets for the year ended December 31, 2022, 2021 and for the period from November 30, 2020 (Inception) to December 31, 2020</u>](#statements_changes_in_net_assets_unaudit) | 85 |
| [<u>Statements of Cash Flows for the year ended December 31, 2022, 2021 and for the period from November 30, 2020 (Inception) to December 31, 2020</u>](#statements_cash_flows_unaudited) | 86 |
| [<u>Schedule of Investments as of December 31, 2022 and 2021</u>](#soi_2022) | 87 |
| [<u>Notes to Financial Statements</u>](#notes_to_financial_statements_unaudited) | 98 |
| [<u>Schedule of Restricted Securities of Unaffiliated Issuers as of December 31, 2022 and 2021</u>](#schedule_restricted_securities_unaffil_1) | 111 |

---

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors of BlackRock Direct Lending Corp.

**Opinion on the Financial Statements**

We have audited the accompanying statements of assets and liabilities of Blackrock Direct Lending Corp. (the "Company"), including the schedules of investments, as of December 31, 2022 and 2021, the related statements of operations, changes in net assets, cash flows, and financial highlights (in Note 9) for the years ended December 31, 2022 and 2021, and for the period from November 30, 2020 (inception) through December 31, 2020, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations, changes in net assets, cash flows, and financial highlights for the years ended December 31, 2022 and 2021, and for the period from November 30, 2020 (inception) through December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2022 and 2021, by correspondence with the custodian, loan agents, and borrowers; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Los Angeles, California

March 1, 2023

We have served as the Company's auditor since 2020.

------

**BlackRock Direct Lending Corp.**

**Statements of Assets and Liabilities** 

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| **Assets** |  |  |
| Investments, at fair value: |  |  |
| &nbsp;&nbsp;&nbsp;Non-controlled, non-affiliated investments (cost of $218,927,364 and $114,888,752, respectively) | $213433199 | $116529036 |
| Total investments (cost of $218,927,364 and $114,888,752, respectively) | 213433199 | 116529036 |
| Cash and cash equivalents | 2856829 | 1957486 |
| Interest receivable | 1856577 | 809137 |
| Deferred debt issuance costs | 141719 | 451461 |
| Deferred offering costs | 107049 | 196256 |
| Prepaid expenses and other assets | 259214 | 98285 |
| Total assets | 218654587 | 120041661 |
| **Liabilities** |  |  |
| Debt (net of deferred issuance costs of $15,167 and $15,709, respectively) | 37594833 | 22094291 |
| Dividend payable | 4350000 |  |
| Management fees payable | 445634 |  |
| Reimbursements due to the Advisor | 285287 | 142784 |
| Payable for investments purchased | 272997 | 10366640 |
| Interest and debt related payables | 113192 | 73441 |
| Incentive fees payable (Note 3) |  | 304622 |
| Accrued capital gains incentive fees (Note 3) |  | 165778 |
| Accrued expenses and other liabilities | 483168 | 291747 |
| Total liabilities | 43545111 | 33439303 |
| **Commitments and contingencies (Note 5)** |  |  |
| **Net assets** | $**175109476** | $**86602358** |
| **Composition of net assets applicable to common stockholders** |  |  |
| Common stock, $0.001 par value; 300,000,000 shares authorized, 17,459,576 and 8,371,979 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | $17460 | $8372 |
| Paid-in capital in excess of par | 180302036 | 85083664 |
| Distributable earnings (loss) | (5210020) | 1510322 |
| Total net assets | 175109476 | 86602358 |
| Total liabilities and net assets | $218654587 | $120041661 |
| **Net assets per share** | $10.03 | $10.34 |

---

See accompanying notes to the financial statements.

------

**BlackRock Direct Lending Corp.**

**Statements of Operations**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the period from November 30 (Inception) to December 31,** |
| **Investment income** | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;Interest income (excluding PIK): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlled, non-affiliated investments | $16259168 | $4530361 | $1187 |
| &nbsp;&nbsp;&nbsp;PIK income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlled, non-affiliated investments | 228972 | 26479 |  |
| &nbsp;&nbsp;&nbsp;Other income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlled, non-affiliated investments | 169197 | 33204 |  |
| Total investment income | 16657337 | 4590044 | 1187 |
| **Operating expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and other debt expenses | 1923494 | 446572 | 734 |
| &nbsp;&nbsp;&nbsp;Management fees | 1381498 | 365873 |  |
| &nbsp;&nbsp;&nbsp;Professional fees | 405977 | 446259 | 78759 |
| &nbsp;&nbsp;&nbsp;Administrative expenses | 375798 | 381314 |  |
| &nbsp;&nbsp;&nbsp;Incentive fees earned | 201710 | 304622 |  |
| &nbsp;&nbsp;&nbsp;Director fees | 156000 | 176426 | 28000 |
| &nbsp;&nbsp;&nbsp;Custody and transfer agent fees | 54880 | 40938 | 2975 |
| &nbsp;&nbsp;&nbsp;Insurance expense | 30536 | 27972 | 5274 |
| &nbsp;&nbsp;&nbsp;Incentive fees on capital gains (1) | (165778) | 165778 |  |
| &nbsp;&nbsp;&nbsp;Organizational expenses |  |  | 71685 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 240468 | 79886 |  |
| Total operating expenses | 4604583 | 2435640 | 187427 |
| **Net investment income** | 12052754 | 2154404 | (186240) |
| **Realized and unrealized gain (loss)** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net realized gain (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlled, non-affiliated investments |  | (1580) |  |
| &nbsp;&nbsp;Change in net unrealized appreciation (depreciation) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlled, non-affiliated investments | (7134450) | 1669324 | (29040) |
| Net realized and unrealized gain (loss) | (7134450) | 1667744 | (29040) |
| **Net increase (decrease) in net assets from operations** | $4918304 | $3822148 | $(215280) |
| **Earnings per share (2)** | $0.42 | $0.69 | $(0.07) |
| **Basic and diluted weighted average shares outstanding** | 12201765 | 5316154 | 1975347 |

---

------

(1)Net investment income and per share amounts displayed above are net of the accrual for incentive fees on capital gains which is reflected on a hypothetical liquidation basis in accordance with Generally Accepted Accounting Principles ("GAAP") for the years ended December 31, 2022 and 2021 (see Note 3).

(2)Computed based on the actual number of shares outstanding and capital activity during the time periods such earnings occurred.

See accompanying notes to the financial statements.

------

**BlackRock Direct Lending Corp.**

**Statements of Changes in Net Assets**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Paid in Capital in** | **Distributable** | **Total Net** |
|  | **Shares** | **Par Amount** | **Excess of Par** | **Earnings (Loss)** | **Assets** |
| Balance at November 30, 2020 (Inception) |  | $— | $— | $— | $— |
| Issuance of common stock | 3010000 | 3010 | 30096990 |  | 30100000 |
| Offering costs charged to paid-in capital |  |  | (22798) |  | (22798) |
| Net investment loss |  |  |  | (186240) | (186240) |
| Net realized and unrealized loss |  |  |  | (29040) | (29040) |
| Tax reclassification of stockholders' equity in accordance with generally accepted accounting principles |  |  | (119798) | 119798 |  |
| Balance at December 31, 2020 | 3010000 | $3010 | $29954394 | $(95482) | $29861922 |
| Issuance of common stock | 5361979 | 5362 | 55177971 |  | 55183333 |
| Offering costs charged to paid-in capital |  |  | (48567) |  | (48567) |
| Net investment income |  |  |  | 2154404 | 2154404 |
| Net realized and unrealized gain |  |  |  | 1667744 | 1667744 |
| Dividends paid to common shareholders |  |  |  | (2216478) | (2216478) |
| Tax reclassification of stockholders' equity in accordance with generally accepted accounting principles |  |  | (134) | 134 |  |
| Balance at December 31, 2021 | 8371979 | $8372 | $85083664 | $1510322 | $86602358 |
| Issuance of common stock | 9087597 | 9088 | 95307579 |  | 95316667 |
| Offering costs charged to paid-in capital |  |  | (89207) |  | (89207) |
| Net investment income |  |  |  | 12052754 | 12052754 |
| Net realized and unrealized gain |  |  |  | (7134450) | (7134450) |
| Dividends paid to common shareholders |  |  |  | (11638646) | (11638646) |
| Balance at December 31, 2022 | 17459576 | $17460 | $180302036 | $(5210020) | $175109476 |

---

See accompanying notes to the financial statements.

------

**BlackRock Direct Lending Corp.**

**Statements of Cash Flows**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the period from November 30 (Inception) to December 31,** |
|  | **2022** | **2021** | **2020** |
| **Operating activities** |  |  |  |
| Net increase (decrease) in net assets resulting from operations | $4918304 | $3822148 | $286843 |
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized (gain) loss |  | 1580 |  |
| &nbsp;&nbsp;&nbsp;Change in net unrealized (appreciation)/depreciation of investments | 7134450 | (1669324) | (188445) |
| &nbsp;&nbsp;&nbsp;Net amortization of investment discounts and premiums | (1061078) | (279930) |  |
| &nbsp;&nbsp;&nbsp;Amortization of deferred debt issuance costs | 310284 | 167718 |  |
| &nbsp;&nbsp;&nbsp;Interest and dividend income paid in kind | (228972) | (26479) |  |
| Changes in assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of investments | (115975758) | (116870974) | (1983522) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposition of investments | 13227195 | 4270573 |  |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in interest receivable | (1047440) | (807950) | (1187) |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in prepaid expenses and other assets | (160929) | (76199) | (22086) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in management fees payable | 445634 |  |  |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in reimbursements due to the Advisor | 142503 | 31824 | 110960 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in interest and debt related payables | 39751 | 73441 |  |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in incentive fees payable | (304622) | 304622 |  |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in accrued capital gains incentive fees | (165778) | 165778 |  |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in payable for investments purchased | (10093643) | 8383118 | 1983522 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in accrued expenses and other liabilities | 191421 | 193928 | 97819 |
| Net cash provided by (used in) operating activities | (102628678) | (102316126) | 283904 |
| **Financing activities** |  |  |  |
| Draws on credit facilities | 107500000 | 50000000 | 110000 |
| Repayments on credit facilities | (92000000) | (28000000) |  |
| Proceeds from shares of common stock sold | 95316667 | 55183333 | 30100000 |
| Payments of debt issuance costs |  | (618638) | (16250) |
| Payments of equity offering costs |  | (267621) |  |
| Dividends paid in cash to stockholders | (7288646) | (2216478) |  |
| Net cash provided by (used in) financing activities | 103528021 | 74080596 | 30193750 |
| Net increase (decrease) in cash and cash equivalents (including restricted cash) | 899343 | (28235530) | 30477654 |
| Cash and cash equivalents (including restricted cash) at beginning of period | 1957486 | 30193016 |  |
| Cash and cash equivalents (including restricted cash) at end of period | $2856829 | $1957486 | $30477654 |
| **Supplemental cash flow information** |  |  |  |
| Interest payments | $1573459 | $205413 | $— |
| Dividends payable | 4350000 |  |  |

---

See accompanying notes to the financial statements.

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments**

**December 31, 2022**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total<br>Coupon** | **Maturity** | **Principal** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Debt Investments</u> <u>(A)</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Automobiles** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;ALCV Purchaser, Inc. (AutoLenders) | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.75% | 11.45% | 4/15/2026 | $913532 | 902561 | 913532 | 0.42% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;ALCV Purchaser, Inc. (AutoLenders) | Sr Secured Revolver | LIBOR(Q) | 1.00% | 6.75% | 11.39% | 4/15/2026 | $92635 | 91736 | 92636 | 0.04% | F |
|  |  |  |  |  |  |  |  | 994297 | 1006168 | 0.46% |  |
| **Beverages** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;JP Intermediate B, LLC (Juice Plus) | First Lien Term Loan | LIBOR(Q) | 1.00% | 5.50% | 9.91% | 11/20/2025 | $1891226 | 1773604 | 1380595 | 0.64% |  |
| **Building Products** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Porcelain Acquisition Corporation (Paramount) | First Lien Term Loan | LIBOR(Q) | 1.00% | 5.75% | 10.48% | 4/30/2027 | $863491 | 849858 | 868671 | 0.40% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Porcelain Acquisition Corporation (Paramount) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 5.75% | 10.48% | 4/30/2027 | $134571 | 132516 | 135379 | 0.06% | F |
|  |  |  |  |  |  |  |  | 982374 | 1004050 | 0.46% |  |
| **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Thermostat Purchaser III, Inc. (Reedy Industries) | Second Lien Term Loan | LIBOR(Q) | 0.75% | 7.25% | 11.98% | 8/31/2029 | $1076305 | 1062280 | 1000964 | 0.46% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Thermostat Purchaser III, Inc. (Reedy Industries) | Second Lien Delayed Draw Term Loan | LIBOR(Q) | 0.75% | 7.25% | 11.98% | 8/31/2029 | $- | (1151) | (12893) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Pueblo Mechanical and Controls, LLC | First Lien Term Loan | SOFR(Q) | 0.75% | 6.00% | 10.32% | 8/23/2028 | $1633192 | 1593804 | 1595139 | 0.74% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Pueblo Mechanical and Controls, LLC | First Lien Delayed Draw Term Loan | SOFR(Q) | 0.75% | 6.00% | 10.49% | 8/23/2028 | $427953 | 401276 | 401643 | 0.19% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Pueblo Mechanical and Controls, LLC | Sr Secured Revolver | SOFR(Q) | 0.75% | 6.00% | 10.32% | 8/23/2027 | $- | (6195) | (6130) | 0.00% | E/F |
|  |  |  |  |  |  |  |  | 3050014 | 2978723 | 1.38% |  |
| **Construction & Engineering** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CSG Buyer, Inc. (Core States) | First Lien Term Loan | SOFR(Q) | 1.00% | 6.00% | 10.84% | 3/31/2028 | $1300323 | 1274316 | 1253511 | 0.58% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;CSG Buyer, Inc. (Core States) | First Lien Delayed Draw Term Loan | SOFR(Q) | 1.00% | 6.00% | 10.84% | 3/31/2028 | $- | (8521) | (15338) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;CSG Buyer, Inc. (Core States) | Sr Secured Revolver | SOFR(Q) | 1.00% | 6.00% | 10.84% | 3/31/2028 | $- | (4261) | (7669) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Homerenew Buyer, Inc. (Project Dream) | First Lien Term Loan | SOFR(S) | 1.00% | 6.50% | 11.54% | 11/23/2027 | $1413970 | 1384007 | 1367309 | 0.63% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Homerenew Buyer, Inc. (Project Dream) | First Lien Delayed Draw Term Loan | SOFR(S) | 1.00% | 6.50% | 11.36% | 11/23/2027 | $1946671 | 1897095 | 1860545 | 0.86% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Homerenew Buyer, Inc. (Project Dream) | Sr Secured Revolver | SOFR(M) | 1.00% | 6.50% | 11.12% | 11/23/2027 | $95536 | 86154 | 79773 | 0.04% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Sunland Asphalt & Construction, LLC | First Lien Term Loan | LIBOR(S) | 1.00% | 6.00% | 11.15% | 1/13/2026 | $993187 | 980246 | 971337 | 0.45% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Sunland Asphalt & Construction, LLC | First Lien Delayed Draw Term Loan | LIBOR(S) | 1.00% | 6.00% | 11.15% | 1/13/2026 | $333959 | 329555 | 326612 | 0.15% | F |
|  |  |  |  |  |  |  |  | 5938591 | 5836080 | 2.70% |  |
| **Consumer Finance** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money Transfer Acquisition Inc. | First Lien Term Loan | SOFR(M) | 1.00% | 8.25% | 12.67% | 12/14/2027 | $1030010 | 1009560 | 1009410 | 0.47% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Freedom Financial Network Funding, LLC | First Lien Term Loan | SOFR(S) | 1.00% | 9.00% | 13.95% | 9/21/2027 | $2983631 | 2911890 | 2909040 | 1.34% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Freedom Financial Network Funding, LLC | First Lien Delayed Draw Term Loan | SOFR(S) | 1.00% | 9.00% | 13.95% | 9/21/2027 | $- | (23585) | (24864) | (0.01)% | E/F |
|  |  |  |  |  |  |  |  | 3897865 | 3893586 | 1.80% |  |
| **Construction Materials** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AHF Parent Holding, Inc. | First Lien Term Loan | SOFR(Q) | 0.75% | 6.25% | 11.09% | 2/1/2028 | $2414623 | 2370765 | 2272764 | 1.05% | D |
| **Containers & Packaging** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BW Holding, Inc. (Brook & Whittle) | Second Lien Term Loan | SOFR(Q) | 0.75% | 7.50% | 12.05% | 12/14/2029 | $1653888 | 1619890 | 1533154 | 0.70% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;BW Holding, Inc. (Brook & Whittle) | Second Lien Delayed Draw Term Loan | SOFR(Q) | 0.75% | 7.50% | 12.05% | 12/14/2029 | $153411 | 150305 | 142212 | 0.07% | F |
|  |  |  |  |  |  |  |  | 1770195 | 1675366 | 0.77% |  |
| **Distributors** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Colony Display, LLC | First Lien Term Loan | SOFR(S) | 1.00% | 9.50% | 13.91% | 6/30/2026 | $970180 | 955954 | 899357 | 0.42% | F |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments (Continued)**

**December 31, 2022**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total<br>Coupon** | **Maturity** | **Principal** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Debt Investments (Continued)</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Diversified Consumer Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Elevate Brands OpCo, LLC | First Lien Delayed Draw Term Loan | SOFR(Q) | 1.00% | 8.50% | 13.23% | 3/15/2027 | $3131544 | 3083554 | 3103842 | 1.44% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Razor Group GmbH (Germany) | First Lien Delayed Draw Term Loan | LIBOR(M) | 1.00% | 9.00% | 14.21% | 4/30/2025 | $4000000 | 4024940 | 3860000 | 1.78% | B/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Razor Group GmbH (Germany) | First Lien Sr Secured Convertible Term Loan | Fixed | 0.00% | 3.50% Cash + 3.50% PIK | 7.00% | 4/30/2025 | $557049 | 557049 | 599385 | 0.28% | B/F |
| &nbsp;&nbsp;&nbsp;&nbsp;SellerX Germany Gmbh & Co. Kg (Germany) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 8.00% Cash + 3.00% PIK | 15.73% | 11/23/2025 | $1044043 | 1026974 | 1029384 | 0.48% | B/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Fusion Holding Corp. (Finalsite) | Sr Secured Revolver | SOFR(Q) | 0.75% | 6.25% | 10.78% | 9/15/2027 | $- | (7219) | (7295) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Fusion Holding Corp. (Finalsite) | First Lien Term Loan | SOFR(Q) | 0.75% | 6.25% | 10.78% | 9/14/2029 | $4175771 | 4085666 | 4084740 | 1.89% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Whele, LLC (Perch) | First Lien Incremental Term Loan | SOFR(M) | 1.00% | 8.50% Cash + 3.00% PIK | 16.20% | 10/15/2025 | $2687893 | 2701631 | 2497052 | 1.15% | F |
|  |  |  |  |  |  |  |  | 15472595 | 15167108 | 7.02% |  |
| **Diversified Financial Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2-10 Holdco, Inc. | First Lien Term Loan | SOFR(M) | 0.75% | 6.00% | 10.42% | 3/26/2026 | $2616524 | 2593999 | 2581985 | 1.19% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;2-10 Holdco, Inc. | Sr Secured Revolver | SOFR(M) | 0.75% | 6.00% | 10.42% | 3/26/2026 | $- | - | (1259) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Accordion Partners LLC | First Lien Term Loan | SOFR(Q) | 0.75% | 6.25% | 10.83% | 8/29/2029 | $3827398 | 3744446 | 3727886 | 1.72% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Accordion Partners LLC | First Lien Delayed Draw Term Loan B | SOFR(Q) | 0.75% | 6.25% | 10.83% | 8/29/2029 | $- | (8977) | (10864) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Accordion Partners LLC | First Lien Delayed Draw Term Loan A | SOFR(Q) | 0.75% | 6.50% | 11.08% | 8/29/2029 | $- | (7181) | (5014) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Accordion Partners LLC | Sr Secured Revolver | SOFR(Q) | 0.75% | 6.25% | 10.83% | 8/31/2028 | $- | (7104) | (8691) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Apex Group Treasury LLC | Second Lien Incremental Term Loan | LIBOR(Q) | 0.50% | 6.75% | 11.48% | 7/27/2029 | $1761100 | 1726425 | 1741024 | 0.80% | C/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreside Financial Group, LLC | First Lien Term Loan | LIBOR(M) | 1.00% | 5.50% | 9.88% | 9/30/2027 | $583866 | 573053 | 566933 | 0.26% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreside Financial Group, LLC | First Lien Delayed Draw Term Loan | LIBOR(M) | 1.00% | 5.50% | 9.57% | 9/30/2027 | $37958 | 35690 | 34258 | 0.02% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreside Financial Group, LLC | Sr Secured Revolver | SOFR(M) | 1.00% | 5.50% | 9.57% | 9/30/2027 | $- | (679) | (1110) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;GC Agile Holdings Limited (Apex) (United Kingdom) | Second Lien Term Loan | LIBOR(Q) | 0.50% | 6.75% | 11.48% | 6/15/2026 | $1250000 | 1238995 | 1235750 | 0.57% | B/F |
| &nbsp;&nbsp;&nbsp;&nbsp;GC Champion Acquisition LLC (Numerix) | First Lien Term Loan | SOFR(S) | 1.00% | 6.75% | 11.15% | 8/21/2028 | $2831103 | 2777112 | 2748434 | 1.27% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;GC Champion Acquisition LLC (Numerix) | First Lien Delayed Draw Term Loan | SOFR(S) | 1.00% | 6.75% | 11.15% | 8/21/2028 | $- | (14837) | (23021) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;GC Waves Holdings, Inc. (Mercer) | First Lien Delayed Draw Term Loan | LIBOR(M) | 0.75% | 5.50% | 8.62% | 8/13/2026 | $1190027 | 1181837 | 1165134 | 0.54% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Libra Solutions Intermediate Holdco, LLC et al (fka Oasis Financial, LLC) | Second Lien Term Loan | SOFR(M) | 1.00% | 8.50% | 12.93% | 7/5/2026 | $2723829 | 2685204 | 2653009 | 1.23% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Wealth Enhancement Group, LLC | First Lien Delayed Draw Term Loan | SOFR(S) | 1.00% | 6.00% | 10.44% | 10/4/2027 | $1380052 | 1367039 | 1309758 | 0.60% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Wealth Enhancement Group, LLC | Sr Secured Revolver | SOFR(S) | 1.00% | 6.00% | 10.44% | 10/4/2027 | $- | (734) | (4009) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Wharf Street Rating Acquisition LLC (KBRA) | First Lien Term Loan | LIBOR(M) | 0.75% | 5.75% | 10.13% | 12/10/2027 | $2630284 | 2585495 | 2532701 | 1.17% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Wharf Street Rating Acquisition LLC (KBRA) | Sr Secured Revolver | LIBOR(Q) | 0.75% | 5.75% | 8.87% | 12/10/2027 | $- | (4382) | (9857) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Worldremit Group Limited (United Kingdom) | First Lien Term Loan (3.0% Exit Fee) | LIBOR(Q) | 1.00% | 9.25% | 13.91% | 2/11/2025 | $4000000 | 3949763 | 3924000 | 1.81% | B/F/I |
|  |  |  |  |  |  |  |  | 24415164 | 24157047 | 11.16% |  |
| **Health Care Equipment & Supplies** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Touchstone Acquisition, Inc. (Team Technologies) | First Lien Term Loan | LIBOR(M) | 0.75% | 6.00% | 10.38% | 12/29/2028 | $1793110 | 1760484 | 1722462 | 0.80% | F |
| **Health Care Providers & Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CBI-Gator Acquisition, LLC | First Lien Term Loan | LIBOR(S) | 0.75% | 5.75% | 10.90% | 10/25/2027 | $1769855 | 1739983 | 1674283 | 0.77% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;CBI-Gator Acquisition, LLC | First Lien Delayed Draw Term Loan | LIBOR(Q) | 0.75% | 5.75% | 7.73% | 10/25/2027 | $- | (5488) | (18428) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;CBI-Gator Acquisition, LLC | Sr Secured Revolver | LIBOR(Q) | 0.75% | 5.75% | 7.73% | 10/25/2027 | $112861 | 110277 | 103381 | 0.05% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Opco Borrower, LLC (Giving Home Health Care) | Sr Secured Revolver | SOFR(M) | 1.00% | 6.50% | 10.87% | 8/19/2027 | $46535 | 44361 | 42486 | 0.02% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Opco Borrower, LLC (Giving Home Health Care) | First Lien Term Loan | SOFR(Q) | 1.00% | 6.50% | 11.18% | 8/19/2027 | $2543416 | 2519003 | 2499161 | 1.15% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;INH Buyer, Inc. (IMS Health) | First Lien Term Loan (1.5% Exit Fee) | SOFR(Q) | 1.00% | 3.50% Cash + 3.50% PIK | 11.68% | 6/28/2028 | $3604048 | 3542677 | 2828457 | 1.31% | F/I |
| &nbsp;&nbsp;&nbsp;&nbsp;PHC Buyer, LLC (Patriot Home Care) | First Lien Term Loan | SOFR(S) | 0.75% | 6.00% | 10.70% | 5/4/2028 | $1508222 | 1480720 | 1460110 | 0.68% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;PHC Buyer, LLC (Patriot Home Care) | First Lien Delayed Draw Term Loan | SOFR(S) | 0.75% | 6.00% | 10.70% | 5/4/2028 | $- | (10294) | (18421) | (0.01)% | E/F |
|  |  |  |  |  |  |  |  | 9421239 | 8571029 | 3.96% |  |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments (Continued)**

**December 31, 2022**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total<br>Coupon** | **Maturity** | **Principal** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Debt Investments (Continued)</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Health Care Technology** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Appriss Health, LLC (PatientPing) | First Lien Term Loan | LIBOR(M) | 1.00% | 7.25% | 11.54% | 5/6/2027 | $1138432 | 1121823 | 1075819 | 0.50% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Appriss Health, LLC (PatientPing) | Sr Secured Revolver | LIBOR(M) | 1.00% | 7.25% | 11.54% | 5/6/2027 | $- | (1106) | (4185) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;ESO Solutions, Inc. | First Lien Term Loan | SOFR(Q) | 1.00% | 7.00% | 11.59% | 5/3/2027 | $3325794 | 3269261 | 3192762 | 1.47% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;ESO Solutions, Inc. | Sr Secured Revolver | SOFR(Q) | 1.00% | 7.00% | 11.59% | 5/3/2027 | $- | (3548) | (9782) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Gainwell Acquisition Corp. | Second Lien Term Loan | LIBOR(Q) | 1.00% | 8.00% | 11.74% | 10/2/2028 | $800332 | 796981 | 753912 | 0.35% | F |
|  |  |  |  |  |  |  |  | 5183411 | 5008526 | 2.32% |  |
| **Insurance** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Alera Group, Inc. | First Lien Delayed Draw Term Loan | SOFR(M) | 0.75% | 6.60% | 10.92% | 10/2/2028 | $373853 | 361204 | 351798 | 0.16% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Alera Group, Inc. | First Lien Incremental Term Loan | SOFR(M) | 0.75% | 6.00% | 10.42% | 10/2/2028 | $333798 | 327385 | 322782 | 0.15% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;AmeriLife Holdings, LLC | First Lien Term Loan | SOFR(Q) | 0.75% | 5.75% | 9.58% | 8/31/2029 | $2189891 | 2148174 | 2100105 | 0.97% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;AmeriLife Holdings, LLC | First Lien Delayed Draw Term Loan | SOFR(S) | 0.75% | 5.75% | 10.15% | 8/31/2029 | $364982 | 354499 | 342535 | 0.16% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;AmeriLife Holdings, LLC | Sr Secured Revolver | SOFR(Q) | 0.75% | 5.75% | 9.58% | 8/31/2028 | $- | (5168) | (11223) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Integrity Marketing Acquisition, LLC | First Lien Incremental Term Loan | SOFR(M) | 0.75% | 6.50% | 10.82% | 8/27/2025 | $2880792 | 2830915 | 2857745 | 1.32% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Integrity Marketing Acquisition, LLC | Sr Secured Incremental Revolver | SOFR(M) | 0.75% | 6.50% | 10.82% | 8/27/2025 | $- | (220950) | (23046) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance) | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.00% | 11.21% | 11/1/2028 | $2125020 | 2097934 | 2020894 | 0.93% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance) | First Lien Delayed Draw Term Loan | SOFR(S) | 0.75% | 6.00% | 11.11% | 11/1/2028 | $790238 | 777844 | 749361 | 0.35% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 0.75% | 6.00% | 11.21% | 11/1/2027 | $590283 | 583048 | 561360 | 0.26% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance) | First Lien Term Loan | SOFR(S) | 0.75% | 6.00% | 11.12% | 11/1/2028 | $362232 | 357234 | 345932 | 0.16% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance) | Sr Secured Revolver | LIBOR(Q) | 0.75% | 6.00% | 9.15% | 11/1/2027 | $- | (1203) | (4869) | 0.00% | E/F |
|  |  |  |  |  |  |  |  | 9610916 | 9613374 | 4.44% |  |
| **Internet Software & Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Anaconda, Inc. | First Lien Term Loan | SOFR(Q) | 1.00% | 7.50% | 11.86% | 8/22/2027 | $843157 | 835131 | 831352 | 0.38% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Astra Acquisition Corp. (Anthology) | Second Lien Term Loan | LIBOR(M) | 0.75% | 8.88% | 13.26% | 10/25/2029 | $2853861 | 2801791 | 2568475 | 1.20% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Civic Plus, LLC | First Lien Term Loan | LIBOR(Q) | 0.75% | 4.25% Cash + 2.50% PIK | 11.48% | 8/25/2027 | $956817 | 940269 | 931270 | 0.43% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Civic Plus, LLC | First Lien Delay Draw Term Loan | LIBOR(Q) | 0.75% | 4.25% Cash + 2.50% PIK | 11.48% | 8/25/2027 | $243022 | 239156 | 236533 | 0.11% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Civic Plus, LLC | Sr Secured Revolver | LIBOR(Q) | 0.75% | 6.00% | 7.51% | 8/25/2027 | $- | (751) | (1292) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Civic Plus, LLC | Sr Secured Revolver | SOFR(Q) | 0.75% | 6.00% | 7.51% | 8/25/2027 | $- | (780) | (1166) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Gympass US, LLC | First Lien Term Loan | SOFR(Q) | 1.00% | 4.00% Cash + 4.00% PIK | 12.77% | 7/8/2027 | $766168 | 759138 | 753143 | 0.35% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;InMoment, Inc. | First Lien Term Loan | SOFR(S) | 0.75% | 5.00% cash + 2.50% PIK | 11.58% | 6/8/2028 | $4550178 | 4465712 | 4445069 | 2.06% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Madison Logic Holdings, Inc. | First Lien Term Loan | SOFR(Q) | 1.00% | 7.00% | 11.58% | 12/29/2028 | $2188849 | 2123226 | 2123184 | 0.98% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Madison Logic Holdings, Inc. | Sr Secured Revolver | SOFR(Q) | 1.00% | 7.00% | 11.58% | 12/30/2027 | $- | (4713) | (4713) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Magenta Buyer, LLC (McAfee) | Second Lien Term Loan | LIBOR(Q) | 0.75% | 8.25% | 12.67% | 7/27/2029 | $3000000 | 2962741 | 2385000 | 1.10% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Magenta Buyer, LLC (McAfee) | First Lien Incremental Term Loan | Fixed | - | 12.00% | 12.00% | 7/27/2028 | $303330 | 272997 | 283614 | 0.13% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pluralsight, Inc. | First Lien Incremental Term Loan | LIBOR(Q) | 1.00% | 8.00% | 11.83% | 4/6/2027 | $1020610 | 1004564 | 980807 | 0.45% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Reveal Data Corporation et al | First Lien FILO Term Loan | SOFR(S) | 1.00% | 6.50% | 9.92% | 3/9/2028 | $1117467 | 1093022 | 1080702 | 0.50% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Sailpoint Technologies Holdings, Inc. | First Lien Term Loan | SOFR(M) | 0.75% | 6.25% | 10.58% | 8/16/2029 | $1632483 | 1600730 | 1583019 | 0.73% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Sailpoint Technologies Holdings, Inc. | Sr Secured Revolver | SOFR(M) | 0.75% | 6.25% | 10.58% | 8/16/2028 | $- | (2486) | (3856) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Suited Connector, LLC | First Lien Term Loan | LIBOR(S) | 1.00% | 6.00% | 10.92% | 12/1/2027 | $1343027 | 1319710 | 1077107 | 0.50% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Suited Connector, LLC | Sr Secured Revolver | LIBOR(S) | 1.00% | 6.00% | 10.98% | 12/1/2027 | $218645 | 214970 | 175353 | 0.08% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Suited Connector, LLC | First Lien Delayed Draw Term Loan | LIBOR(S) | 1.00% | 6.00% | 10.92% | 12/1/2027 | $- | (5382) | (64938) | (0.03)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Tahoe Finco, LLC (Talend) | First Lien Term Loan | LIBOR(M) | 0.75% | 6.00% | 10.29% | 10/1/2028 | $4481637 | 4404306 | 4329710 | 2.00% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Tahoe Finco, LLC (Talend) | Sr Secured Revolver | LIBOR(M) | 0.75% | 6.00% | 10.29% | 10/1/2027 | $- | (5531) | (11058) | (0.01)% | E/F |
|  |  |  |  |  |  |  |  | 25017820 | 23697315 | 10.96% |  |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments (Continued)**

**December 31, 2022**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total<br>Coupon** | **Maturity** | **Principal** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Debt Investments (Continued)</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Internet & Catalog Retail** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CommerceHub, Inc. | First Lien Term Loan | PRIME | 0.75% | 5.25% | 12.25% | 12/29/2027 | $2590503 | 2412581 | 2411758 | 1.12% | F |
| **IT Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Avalara, Inc. | First Lien Term Loan | SOFR(Q) | 0.75% | 7.25% | 11.83% | 10/19/2028 | $4548580 | 4437271 | 4412123 | 2.04% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Avalara, Inc. | Sr Secured Revolver | SOFR(Q) | 0.75% | 7.25% | 11.83% | 10/19/2028 | $- | (11004) | (13646) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Ensono, Inc. | Second Lien Term Loan B | LIBOR(S) | 0.00% | 8.00% | 13.15% | 5/28/2029 | $3000000 | 2975089 | 2775000 | 1.28% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Idera, Inc. | Second Lien Term Loan | LIBOR(Q) | 0.75% | 6.75% | 10.50% | 3/2/2029 | $1137871 | 1130925 | 944433 | 0.44% | F |
|  |  |  |  |  |  |  |  | 8532281 | 8117910 | 3.75% |  |
| **Leisure Products** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Peloton Interactive, Inc. | First Lien Term Loan | SOFR(S) | 0.50% | 7.00% | 11.76% | 5/25/2027 | $1048616 | 1013182 | 1034197 | 0.48% | D |
| **Life Sciences Tools & Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Alcami Corporation | First Lien Term Loan | SOFR(M) | 1.00% | 7.00% | 11.42% | 12/21/2028 | $962416 | 928869 | 928732 | 0.43% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Alcami Corporation | First Lien Delayed Draw Term Loan | SOFR(M) | 1.00% | 7.00% | 11.42% | 12/21/2028 | $- | (2793) | (2807) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Alcami Corporation | Sr Secured Revolver | SOFR(M) | 1.00% | 7.00% | 11.42% | 12/21/2028 | $- | (4470) | (4491) | 0.00% | E/F |
|  |  |  |  |  |  |  |  | 921606 | 921434 | 0.43% |  |
| **Media** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Kid Distro Holdings, LLC | First Lien Term Loan | LIBOR(Q) | 1.00% | 5.75% | 10.48% | 10/1/2027 | $825021 | 811453 | 797465 | 0.37% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Kid Distro Holdings, LLC | Sr Secured Revolver | LIBOR(Q) | 1.00% | 5.75% | 10.48% | 10/1/2027 | $- | (1184) | (2480) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;NEP II, Inc. | Second Lien Term Loan | LIBOR(M) | 0.00% | 7.00% | 11.38% | 10/19/2026 | $130856 | 123347 | 97978 | 0.05% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Streamland Media Midco LLC | First Lien Term Loan | SOFR(Q) | 1.00% | 6.75% | 11.11% | 8/31/2023 | $3424072 | 3382571 | 3266565 | 1.50% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Streamland Media Midco LLC | First Lien Delayed Draw Term Loan | SOFR(Q) | 1.00% | 6.75% | 11.11% | 8/31/2023 | $- | (13187) | (49864) | (0.02)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Terraboost Media Operating Company, LLC | First Lien Term Loan | SOFR(Q) | 1.00% | 6.50% | 8.14% | 8/23/2026 | $1427599 | 1403464 | 1323384 | 0.61% | F |
|  |  |  |  |  |  |  |  | 5706464 | 5433048 | 2.51% |  |
| **Paper & Forest Products** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Alpine Acquisition Corp II (48Forty) | First Lien Incremental Term Loan | SOFR(Q) | 1.00% | 5.50% | 10.06% | 11/30/2026 | $234607 | 225954 | 223675 | 0.10% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Alpine Acquisition Corp II (48Forty) | First Lien Delayed Draw Term Loan | SOFR(Q) | 1.00% | 5.50% | 9.76% | 11/30/2026 | $265627 | 258494 | 252851 | 0.12% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Alpine Acquisition Corp II (48Forty) | Sr Secured Revolver | SOFR(Q) | 1.00% | 5.50% | 9.76% | 11/30/2026 | $- | (6634) | (12796) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Alpine Acquisition Corp II (48Forty) | First Lien Term Loan | SOFR(Q) | 1.00% | 5.50% | 9.76% | 11/30/2026 | $3729989 | 3658589 | 3550576 | 1.65% | F |
|  |  |  |  |  |  |  |  | 4136403 | 4014306 | 1.86% |  |
| **Professional Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cherry Bekaert Advisory, LLC | First Lien Term Loan | SOFR(M) | 0.75% | 5.50% | 9.82% | 6/30/2028 | $929153 | 911785 | 902672 | 0.42% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Cherry Bekaert Advisory, LLC | First Lien Delayed Draw Term Loan | SOFR(Q) | 0.75% | 5.50% | 9.78% | 6/30/2028 | $168469 | 161437 | 157606 | 0.07% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Cherry Bekaert Advisory, LLC | Sr Secured Revolver | SOFR(M) | 0.75% | 5.50% | 9.82% | 6/30/2028 | $57173 | 53660 | 51741 | 0.02% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;DTI Holdco, Inc. (Epiq Systems, Inc.) | Second Lien Term Loan | SOFR(Q) | 0.75% | 7.75% | 11.84% | 4/26/2030 | $1988125 | 1950823 | 1835701 | 0.85% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GI Consilio Parent, LLC | Second Lien Term Loan | LIBOR(M) | 0.50% | 7.50% | 11.88% | 5/14/2029 | $3000000 | 2975981 | 2877000 | 1.33% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;ICIMS, Inc. | First Lien Term Loan | SOFR(Q) | 0.75% | 3.38% Cash + 3.88% PIK | 11.52% | 8/18/2028 | $4391188 | 4317018 | 4224761 | 1.95% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;ICIMS, Inc. | First Lien Delayed Draw Term Loan | SOFR(Q) | 0.75% | 3.38% Cash + 3.88% PIK | 11.52% | 8/18/2028 | $- | (19160) | (44205) | (0.02)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;ICIMS, Inc. | Sr Secured Revolver | SOFR(Q) | 0.75% | 6.75% | 11.02% | 8/18/2028 | $- | (6872) | (15850) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;JobandTalent USA, Inc. (United Kingdom) | First Lien Term Loan (3.0% Exit Fee) | SOFR(M) | 1.00% | 8.75% | 13.19% | 2/17/2025 | $4272200 | 4211246 | 4169667 | 1.93% | B/F/I |
| &nbsp;&nbsp;&nbsp;&nbsp;JobandTalent USA, Inc. (United Kingdom) | First Lien Delayed Draw Term Loan (3.0% Exit Fee) | SOFR(M) | 1.00% | 8.75% | 13.19% | 2/17/2025 | $1750000 | 1728525 | 1708000 | 0.79% | B/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Security Services Acquisition Sub Corp. (Protos) | First Lien Term Loan | LIBOR(M) | 1.00% | 6.00% | 9.03% | 9/30/2026 | $1452943 | 1445196 | 1419004 | 0.66% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;VT TopCo, Inc. (Veritext) | Second Lien Term Loan | LIBOR(M) | 0.75% | 6.75% | 11.13% | 8/4/2026 | $438158 | 435925 | 420632 | 0.19% | F |
|  |  |  |  |  |  |  |  | 18165564 | 17706729 | 8.18% |  |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments (Continued)**

**December 31, 2022**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total<br>Coupon** | **Maturity** | **Principal** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Debt Investments (Continued)</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Real Estate Management & Development** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Greystone Affordable Housing Initiatives, LLC | First Lien Delayed Draw Term Loan | LIBOR(S) | 1.25% | 6.00% | 9.05% | 3/2/2026 | $2800000 | 2800000 | 2766400 | 1.28% | C/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Greystone Select Company II, LLC (Passco) | First Lien Delayed Draw Term Loan | SOFR(M) | 1.50% | 6.50% | 10.94% | 3/21/2027 | $- | (45127) | (48041) | (0.02)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Greystone Select Company II, LLC (Passco) | First Lien Term Loan | SOFR(M) | 1.50% | 6.50% | 10.94% | 3/21/2027 | $1847720 | 1814206 | 1814462 | 0.84% | F |
|  |  |  |  |  |  |  |  | 4569079 | 4532821 | 2.10% |  |
| **Road & Rail** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Motive Technologies, Inc. (fka Keep Truckin, Inc.) | First Lien Term Loan | SOFR(S) | 1.00% | 7.25% | 11.03% | 4/8/2025 | $4483350 | 4438477 | 4451967 | 2.06% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Motive Technologies, Inc. (fka Keep Truckin, Inc.) | First Lien Incremental Term Loan | SOFR(S) | 1.00% | 7.25% | 10.94% | 4/8/2025 | $516650 | 511053 | 513033 | 0.24% | F |
|  |  |  |  |  |  |  |  | 4949530 | 4965000 | 2.30% |  |
| **Semiconductors & Semiconductor Equipment** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Emerald Technologies (U.S.) AcquisitionCo, Inc. | First Lien Term Loan | SOFR(M) | 1.00% | 6.25% | 10.67% | 12/29/2027 | $753979 | 740746 | 715650 | 0.33% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Emerald Technologies (U.S.) AcquisitionCo, Inc. | Sr Secured Revolver | SOFR(M) | 1.00% | 6.00% | 10.42% | 12/29/2026 | $131075 | 99252 | 109062 | 0.05% | F |
|  |  |  |  |  |  |  |  | 839998 | 824712 | 0.38% |  |
| **Software** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Aerospike, Inc. | First Lien Term Loan | LIBOR(M) | 1.00% | 7.50% | 11.88% | 12/29/2025 | $958030 | 950539 | 941551 | 0.44% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;AlphaSense, Inc. | First Lien Term Loan | SOFR(M) | 1.00% | 7.00% | 11.44% | 3/11/2027 | $3443467 | 3411590 | 3412476 | 1.58% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Aras Corporation | First Lien Term Loan | LIBOR(Q) | 1.00% | 3.25% Cash + 3.75% PIK | 10.94% | 4/13/2027 | $1763024 | 1739412 | 1696029 | 0.78% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Aras Corporation | Sr Secured Revolver | LIBOR(S) | 1.00% | 6.50% | 9.50% | 4/13/2027 | $40630 | 38859 | 35998 | 0.02% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Backoffice Associates Holdings, LLC (Syniti) | First Lien Term Loan | SOFR(Q) | 1.00% | 7.75% | 12.00% | 4/30/2026 | $1964301 | 1922786 | 1911265 | 0.88% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Backoffice Associates Holdings, LLC (Syniti) | Sr Secured Revolver | PRIME | 1.00% | 6.75% | 14.25% | 4/30/2026 | $205992 | 200512 | 198951 | 0.09% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonterra LLC (fka CyberGrants Holdings, LLC) | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.25% | 10.98% | 9/8/2027 | $2559435 | 2528255 | 2480860 | 1.15% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonterra LLC (fka CyberGrants Holdings, LLC) | First Lien Incremental Term Loan | LIBOR(Q) | 0.75% | 6.01% | 10.74% | 9/8/2027 | $497668 | 491108 | 482390 | 0.22% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonterra LLC (fka CyberGrants Holdings, LLC) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 0.75% | 6.25% | 10.98% | 9/8/2027 | $119382 | 112004 | 100766 | 0.05% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonterra LLC (fka CyberGrants Holdings, LLC) | Sr Secured Revolver | LIBOR(Q) | 0.75% | 6.25% | 10.98% | 9/8/2027 | $93324 | 90347 | 85621 | 0.04% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Fusion Risk Management, Inc. | First Lien Term Loan | SOFR(Q) | 1.00% | 3.25% Cash + 3.75% PIK | 11.40% | 8/30/2028 | $3815832 | 3734405 | 3686094 | 1.70% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Fusion Risk Management, Inc. | Sr Secured Revolver | SOFR(Q) | 1.00% | 6.50% | 10.90% | 8/30/2028 | $- | (8029) | (12851) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Grey Orange Incorporated | First Lien Term Loan (3.75% Exit Fee) | SOFR(Q) | 1.00% | 7.25% | 12.23% | 5/6/2026 | $611185 | 602434 | 603790 | 0.28% | F/I |
| &nbsp;&nbsp;&nbsp;&nbsp;Grey Orange Incorporated | First Lien Delayed Draw Term Loan (3.75% Exit Fee) | SOFR(Q) | 1.00% | 7.25% | 11.55% | 5/6/2026 | $366711 | 361497 | 359316 | 0.17% | F/I |
| &nbsp;&nbsp;&nbsp;&nbsp;GTY Technology Holdings Inc. | First Lien Term Loan | SOFR(Q) | 0.75% | 2.58% Cash + 4.30% PIK | 11.46% | 7/9/2029 | $1788305 | 1755168 | 1731079 | 0.80% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;GTY Technology Holdings Inc. | First Lien Delayed Draw Term Loan | SOFR(Q) | 0.75% | 2.58% Cash + 4.30% PIK | 11.40% | 7/9/2029 | $1381603 | 1355844 | 1337392 | 0.62% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;GTY Technology Holdings Inc. | Sr Secured Revolver | SOFR(Q) | 0.75% | 6.25% | 10.83% | 7/9/2029 | $- | (5964) | (10190) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Howlco, LLC, (Lone Wolf) | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.00% | 10.69% | 10/23/2026 | $736890 | 731257 | 704909 | 0.33% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Integrate.com, Inc. (Infinity Data, Inc.) | First Lien Term Loan | LIBOR(M)/SOFR(M) | 1.00% | 3.00% Cash + 3.00% PIK | 10.34% | 12/17/2027 | $3457323 | 3381276 | 3353603 | 1.55% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Integrate.com, Inc. (Infinity Data, Inc.) | First Lien Delayed Draw Term Loan | SOFR(M) | 1.00% | 3.00% Cash + 3.00% PIK | 10.28% | 12/17/2027 | $- | (8309) | (15056) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Integrate.com, Inc. (Infinity Data, Inc.) | Sr Secured Revolver | SOFR(M) | 1.00% | 6.00% | 10.28% | 12/17/2027 | $- | (4155) | (7528) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;JOBVITE, Inc. (Employ, Inc.) | First Lien Term Loan | SOFR(S) | 0.75% | 8.00% | 10.93% | 8/5/2028 | $2796125 | 2728636 | 2701616 | 1.25% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Kaseya, Inc. | First Lien Term Loan | SOFR(Q) | 0.75% | 5.75% | 10.33% | 6/25/2029 | $3448180 | 3398714 | 3344735 | 1.55% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Kaseya, Inc. | First Lien Delayed Draw Term Loan | SOFR(Q) | 0.75% | 5.75% | 10.33% | 6/25/2029 | $- | (2926) | (6323) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Kaseya, Inc. | Sr Secured Revolver | SOFR(Q) | 0.75% | 5.75% | 10.33% | 6/25/2029 | $- | (2926) | (6323) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Kong Inc. | First Lien Term Loan | SOFR(M) | 1.00% | 5.50% Cash + 3.25% PIK | 12.99% | 11/1/2027 | $913314 | 895162 | 895048 | 0.41% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Lightspeed Solutions, LLC | First Lien Term Loan | SOFR(M) | 0.75% | 6.50% | 10.82% | 3/1/2028 | $2284015 | 2243072 | 2210013 | 1.02% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Lightspeed Solutions, LLC | First Lien Delayed Draw Term Loan | SOFR(M) | 0.75% | 6.00% | 9.04% | 3/1/2028 | $- | (12659) | (23795) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Nvest, Inc. (SigFig) | First Lien Term Loan | SOFR(S) | 1.00% | 7.50% | 11.49% | 9/15/2025 | $932814 | 920552 | 909120 | 0.42% | F |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments (Continued)**

**December 31, 2022**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total<br>Coupon** | **Maturity / Expiration** | **Principal / Shares** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Debt Investments (Continued)</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Software (Continued)** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Oak Purchaser, Inc. (DaySmart) | First Lien Term Loan (1.0% Exit Fee) | SOFR(Q) | 0.75% | 5.50% | 9.48% | 4/28/2028 | $650015 | 643515 | 627915 | 0.29% | F/I |
| &nbsp;&nbsp;&nbsp;&nbsp;Oak Purchaser, Inc. (DaySmart) | First Lien Delayed Draw Term Loan (1.0% Exit Fee) | SOFR(Q) | 0.75% | 5.50% | 9.48% | 4/28/2028 | $145603 | 141270 | 130870 | 0.06% | F/I |
| &nbsp;&nbsp;&nbsp;&nbsp;Oak Purchaser, Inc. (DaySmart) | Sr Secured Revolver (1.0% Exit Fee) | SOFR(Q) | 0.75% | 5.50% | 9.48% | 4/28/2028 | $- | (867) | (2947) | 0.00% | E/F/I |
| &nbsp;&nbsp;&nbsp;&nbsp;Oversight Systems, Inc. | First Lien Term Loan | LIBOR(M) | 1.00% | 7.00% | 11.38% | 9/24/2026 | $614725 | 605110 | 590136 | 0.27% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;SEP Raptor Acquisition, Inc. (Loopio) (Canada) | First Lien Term Loan | LIBOR(Q) | 1.00% | 4.50% Cash + 3.00% PIK | 12.25% | 3/31/2027 | $1507752 | 1485105 | 1480612 | 0.68% | B/F |
| &nbsp;&nbsp;&nbsp;&nbsp;SEP Raptor Acquisition, Inc. (Loopio) (Canada) | Sr Secured Revolver | LIBOR(Q) | 1.00% | 4.50% Cash + 3.00% PIK | 12.25% | 3/31/2027 | $- | (2308) | (2926) | 0.00% | B/E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Smarsh, Inc. | First Lien Term Loan | SOFR(Q) | 0.75% | 6.50% | 11.29% | 2/19/2029 | $1958057 | 1922614 | 1869944 | 0.86% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Smarsh, Inc. | First Lien Delayed Draw Term Loan | LIBOR(Q) | 0.75% | 6.50% | 11.29% | 2/19/2029 | $244757 | 236168 | 222729 | 0.10% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Smarsh, Inc. | Sr Secured Revolver | LIBOR(Q) | 0.75% | 6.50% | 11.29% | 2/19/2029 | $- | (2146) | (5507) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Thunder Purchaser, Inc. (Vector Solutions) | First Lien Term Loan | LIBOR(Q) | 1.00% | 5.75% | 10.48% | 6/30/2028 | $2706475 | 2660977 | 2545710 | 1.18% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Thunder Purchaser, Inc. (Vector Solutions) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 5.75% | 10.48% | 6/30/2028 | $741955 | 729589 | 697883 | 0.32% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Thunder Purchaser, Inc. (Vector Solutions) | Sr Secured Revolver | LIBOR(Q) | 1.00% | 5.75% | 10.48% | 6/30/2028 | $70093 | 66839 | 57950 | 0.03% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Zendesk Inc. | First Lien Term Loan | SOFR(Q) | 0.75% | 6.50% | 11.04% | 11/22/2028 | $2943351 | 2884675 | 2884484 | 1.33% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Zendesk Inc. | First Lien Delayed Draw Term Loan | SOFR(Q) | 0.75% | 6.50% | 11.04% | 11/22/2028 | $- | (14449) | (14717) | (0.01)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Zendesk Inc. | Sr Secured Revolver | SOFR(Q) | 0.75% | 6.50% | 11.04% | 11/22/2028 | $- | (5954) | (6060) | 0.00% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Zilliant Incorporated | First Lien Term Loan | LIBOR(M) | 0.75% | 2.00% Cash + 4.50% PIK | 10.85% | 12/21/2027 | $2325359 | 2287128 | 2181187 | 1.01% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Zilliant Incorporated | First Lien Delayed Draw Term Loan | LIBOR(M) | 0.75% | 2.00% Cash + 4.50% PIK | 10.85% | 12/21/2027 | $- | (9219) | (34444) | (0.02)% | E/F |
| &nbsp;&nbsp;&nbsp;&nbsp;Zilliant Incorporated | Sr Secured Revolver | LIBOR(M) | 0.75% | 6.00% | 10.35% | 12/21/2027 | $- | (3687) | (13778) | (0.01)% | E/F |
|  |  |  |  |  |  |  |  | 47172821 | 46309597 | 21.41% |  |
| **Specialty Retail** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hanna Andersson, LLC | First Lien Term Loan | LIBOR(M) | 1.00% | 6.00% | 10.29% | 7/2/2026 | $2941719 | 2897409 | 2803458 | 1.30% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Supergoop, LLC | First Lien Term Loan | LIBOR(M) | 0.75% | 5.75% | 10.13% | 12/29/2028 | $536578 | 526961 | 518013 | 0.23% | F |
| &nbsp;&nbsp;&nbsp;&nbsp;Supergoop, LLC | Sr Secured Revolver | LIBOR(M) | 0.75% | 5.75% | 10.13% | 12/29/2028 | $- | (1260) | (2513) | 0.00% | E/F |
|  |  |  |  |  |  |  |  | 3423110 | 3318958 | 1.53% |  |
| **Technology Hardware, Storage & Peripherals** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SumUp Holdings Luxembourg S.A.R.L. (United Kingdom) | First Lien Delayed Draw Term Loan | SOFR(Q) | 1.00% | 7.00% | 11.68% | 2/17/2026 | $94286 | 92793 | 90891 | 0.04% | B/F |
| **Wireless Telecommunication Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;OpenMarket, Inc. (Infobip) (United Kingdom) | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.25% | 10.98% | 9/17/2026 | $4460192 | 4373462 | 4319250 | 2.00% | B/F |
| **Total Debt Investments - 121.6% of Net Assets** | **Total Debt Investments - 121.6% of Net Assets** |  |  |  |  |  |  | 218924162 | 212884161 | 98.43% |  |
| **<u>Equity Securities</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Diversified Consumer Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Elevate Brands Holdco, Inc. | Warrants to Purchase Common Stock |  |  |  |  | 3/14/2032 | 26332 | - | 12671 | 0.01% | F/G/H |
| &nbsp;&nbsp;&nbsp;&nbsp;Elevate Brands Holdco, Inc. | Warrants to Purchase Preferred Stock |  |  |  |  | 3/14/2032 | 13166 | - | 10166 | 0.00% | F/G/H |
| &nbsp;&nbsp;&nbsp;&nbsp;PerchHQ, LLC | Warrants to Purchase Common Stock |  |  |  |  | 10/15/2027 | 18636 | - | 103802 | 0.05% | F/G/H |
| &nbsp;&nbsp;&nbsp;&nbsp;Razor Group GmbH (Germany) | Warrants to Purchase Preferred Series A1 Shares |  |  |  |  | 4/28/2028 | 61 | - | 235592 | 0.10% | B/F/G/H |
| &nbsp;&nbsp;&nbsp;&nbsp;Razor Group GmbH (Germany) | Warrants to Purchase Series C Shares |  |  |  |  | 4/28/2028 | 19 | - | 107429 | 0.05% | B/F/G/H |
| &nbsp;&nbsp;&nbsp;&nbsp;MXP Prime Platform GmbH (SellerX) (Germany) | Warrants to Purchase Preferred Series B Shares |  |  |  |  | 11/23/2028 | 8 | - | 16323 | 0.01% | B/F/G/H |
|  |  |  |  |  |  |  |  | - | 485983 | 0.22% |  |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments (Continued)**

**December 31, 2022**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Expiration** | **Shares** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Equity Securities (Continued)</u>** |  |  |  |  |  |  |  |
| **Diversified Financial Services** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Worldremit Group Limited (United Kingdom) | Warrants to Purchase Series D Stock | 2/11/2031 | 2394 | - | 57384 | 0.03% | B/F/G/H |
| &nbsp;&nbsp;&nbsp;&nbsp;Worldremit Group Limited (United Kingdom) | Warrants to Purchase Series E Stock | 8/27/2031 | 299 | - | 2165 | 0.00% | B/F/G/H |
|  |  |  |  | - | 59549 | 0.03% |  |
| **Software** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Grey Orange International Inc. | Warrants to Purchase Common Stock | 5/6/2032 | 827 | 3203 | 3506 | 0.00% | F/G/H |
| **Total Equity Securities - 0.3% of Net Assets** | **Total Equity Securities - 0.3% of Net Assets** |  |  | 3203 | 549038 | 0.25% |  |
| **Total Investments - 121.9% of Net Assets** | **Total Investments - 121.9% of Net Assets** |  |  | 218927365 | 213433199 | 98.68% |  |
| **Cash and Cash Equivalents - 1.6% of Net Assets** | **Cash and Cash Equivalents - 1.6% of Net Assets** |  |  |  | 2856829 | 1.32% |  |
| **Total Cash and Investments - 123.5% of Net Assets** | **Total Cash and Investments - 123.5% of Net Assets** |  |  |  | 216290029 | 100.00% |  |

---

Notes to Schedule of Investments:

(A)Debt investments include investments in bank debt that generally are bought and sold among institutional investors in transactions not subject to registration under the Securities Act of 1933 (the "Securities Act"). Such transactions are generally subject to contractual restrictions, such as approval of the agent or borrower.

(B)Non-U.S. company or principal place of business outside the U.S. and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act of 1940 (the "1940 Act"). Under the 1940 Act, the Company may not acquire any nonqualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(C)Deemed an investment company under Section 3(c) of the 1940 Act and as a result the investment is not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any nonqualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(D)Publicly traded company with a market capitalization greater than $250 million and as a result the investment is not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(E)Negative balances relate to an unfunded commitment that was acquired and/or valued at a discount.

(F)Inputs in the valuation of this investment included certain unobservable inputs that were significant to the valuation as a whole.

(G)Restricted security. (See Note 10)

(H)Non-income producing investment.

(I)In addition to the stated coupon, investment has an exit fee payable upon repayment of the loan in an amount equal to the percentage of the original principal amount shown.

LIBOR or SOFR resets monthly (M), quarterly (Q) or semiannually (S).

Aggregate acquisitions and aggregate dispositions of investments, other than government securities, totaled $116,204,730 and $13,227,195 respectively, for the year ended December 31, 2022. Aggregate acquisitions include investment assets received as payment in kind. Aggregate dispositions include principal paydowns on and maturities of debt investments. The total value of restricted securities and bank debt as of December 31, 2022 was $213,433,199 or 98.7% of total cash and investments of the Company. As of December 31, 2022, approximately 14.1% of the total assets of the Company were non-qualifying assets under Section 55(a) of the 1940 Act.

See accompanying notes to the financial statements.

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments**

**December 31, 2021**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total<br>Coupon** | **Maturity** | **Principal** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Debt Investments (A)</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Automobiles** |  |  |  |  |  |  |  |  |  |  |  |
| ALCV Purchaser, Inc. (AutoLenders) | First Lien Term Loan | LIBOR(M) | 1.00% | 6.75% | 7.75% | 2/25/2026 | $1111625 | $1096822 | $1136192 | 0.96% | E |
| ALCV Purchaser, Inc. (AutoLenders) | First Lien Revolver | LIBOR(M) | 1.00% | 6.75% | 7.75% | 2/25/2026 | $- | (1192) | - | 0.00% | D/E |
|  |  |  |  |  |  |  |  | 1095630 | 1136192 | 0.96% |  |
| **Beverages** |  |  |  |  |  |  |  |  |  |  |  |
| JP Intermediate B, LLC (Juice Plus) | First Lien Term Loan | LIBOR(Q) | 1.00% | 5.50% | 6.50% | 11/20/2025 | $2020379 | 1859153 | 1884003 | 1.59% |  |
| **Building Products** |  |  |  |  |  |  |  |  |  |  |  |
| Porcelain Acquisition Corporation (Paramount) | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 4/30/2027 | $871662 | 855419 | 873405 | 0.74% | E |
| Porcelain Acquisition Corporation (Paramount) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 4/30/2027 | $- | (6680) | 751 | 0.00% | D/E |
|  |  |  |  |  |  |  |  | 848739 | 874156 | 0.74% |  |
| **Commercial Services & Supplies** | **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |  |
| Thermostat Purchaser III, Inc. (Reedy Industries) | Second Lien Term Loan | LIBOR(M) | 0.75% | 7.25% | 8.00% | 8/31/2029 | $1076305 | 1060778 | 1068771 | 0.90% | E |
| Thermostat Purchaser III, Inc. (Reedy Industries) | Second Lien Delayed Draw Term Loan | LIBOR(M) | 0.75% | 7.25% | 8.00% | 8/31/2029 | $- | (1324) | (1289) | 0.00% | D/E |
|  |  |  |  |  |  |  |  | 1059454 | 1067482 | 0.90% |  |
| **Construction & Engineering** | **Construction & Engineering** |  |  |  |  |  |  |  |  |  |  |
| Homerenew Buyer, Inc. (Project Dream) | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.50% | 7.50% | 8/10/2027 | $1264230 | 1233078 | 1231359 | 1.06% | E |
| Homerenew Buyer, Inc. (Project Dream) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 6.50% | 7.50% | 8/10/2027 | $- | (18968) | (20095) | (0.02)% | D/E |
| Homerenew Buyer, Inc. (Project Dream) | Sr Secured Revolver | LIBOR(Q) | 1.00% | 6.50% | 7.50% | 11/23/2027 | $- | (8137) | (8612) | (0.01)% | D/E |
| PHRG Intermediate, LLC (Power Home) | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 12/16/2026 | $4516650 | 4403734 | 4471484 | 3.77% | E |
| Sunland Asphalt & Construction, LLC | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 1/13/2026 | $1003322 | 986630 | 1000312 | 0.84% | E |
| Sunland Asphalt & Construction, LLC | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 1/13/2026 | $337367 | 331542 | 335728 | 0.28% | E |
|  |  |  |  |  |  |  |  | 6927879 | 7010176 | 5.92% |  |
| **Containers & Packaging** | **Containers & Packaging** |  |  |  |  |  |  |  |  |  |  |
| BW Holding, Inc. (Brook & Whittle) | Second Lien Term Loan | LIBOR(Q) | 0.75% | 7.50% | 8.25% | 12/14/2029 | $883647 | 863765 | 863765 | 0.73% | E |
| BW Holding, Inc. (Brook & Whittle) | Second Lien Delayed Draw Term Loan | LIBOR(Q) | 0.75% | 7.50% | 8.25% | 12/14/2029 | $- | (3452) | (3452) | 0.00% | D/E |
|  |  |  |  |  |  |  |  | 860313 | 860313 | 0.73% |  |
| **Distributors** |  |  |  |  |  |  |  |  |  |  |  |
| Colony Display, LLC | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.50% | 7.50% | 6/30/2026 | $975617 | 957834 | 944397 | 0.79% | E |
| Colony Display, LLC | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 6.50% | 7.50% | 6/30/2026 | $- | (8833) | (15688) | (0.01)% | D/E |
|  |  |  |  |  |  |  |  | 949001 | 928709 | 0.78% |  |
| **Diversified Consumer Services** | **Diversified Consumer Services** |  |  |  |  |  |  |  |  |  |  |
| Razor Group GmbH (Germany) | First Lien Delayed Draw Term Loan | LIBOR(M) | 1.00% | 9.00% | 10.00% | 9/30/2025 | $4000000 | 4033904 | 3992000 | 3.37% | B/E |
| Razor Group GmbH (Germany) | First Lien Sr Secured Convertible Term Loan | Fixed | - | 3.50% Cash + 3.50% PIK | 7.00% | 10/2/2023 | $537968 | 537968 | 827395 | 0.70% | B/E |
| SellerX Germany Gmbh & Co. Kg (Germany) | First Lien Term Loan | LIBOR(Q) | 1.00% | 8.00% | 9.00% | 11/23/2025 | $911288 | 902583 | 906914 | 0.77% | B/E |
| SellerX Germany Gmbh & Co. Kg (Germany) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 8.00% | 9.00% | 11/23/2025 | $- | (15468) | (7626) | (0.01)% | B/D/E |
| Whele, LLC (Perch) | First Lien Incremental Term Loan | LIBOR(M) | 1.00% | 7.50% | 8.50% | 10/15/2025 | $2815986 | 2837663 | 2824434 | 2.38% | E |
|  |  |  |  |  |  |  |  | 8296650 | 8543117 | 7.21% |  |
| **Diversified Financial Services** | **Diversified Financial Services** |  |  |  |  |  |  |  |  |  |  |
| 2-10 Holdco, Inc. | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 3/26/2026 | $2643155 | 2614241 | 2628617 | 2.22% | E |
| 2-10 Holdco, Inc. | Sr Secured Revolver | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 3/26/2026 | $- | - | (524) | 0.00% | D/E |
| GC Agile Holdings Limited (Apex) (United Kingdom) | Second Lien Term Loan | LIBOR(Q) | 1.25% | 7.00% | 8.25% | 6/15/2026 | $1250000 | 1237851 | 1234375 | 1.04% | B/E |
| Oasis Financial, LLC | Second Lien Term Loan | LIBOR(M) | 1.00% | 8.50% | 9.50% | 7/5/2026 | $2723829 | 2677055 | 2688419 | 2.27% | E |
| Wharf Street Rating Acquisition LLC (KBRA) | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 12/10/2027 | $2656853 | 2604309 | 2603716 | 2.20% | E |
| Wharf Street Rating Acquisition LLC (KBRA) | Sr Secured Revolver | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 12/10/2027 | $- | (5262) | (5314) | 0.00% | D/E |
| Worldremit Group Limited (United Kingdom) | First Lien Term Loan (3.0% Exit Fee) | LIBOR(Q) | 1.00% | 9.25% | 10.25% | 2/11/2025 | $4000000 | 3932291 | 3904000 | 3.29% | B/E/H |
|  |  |  |  |  |  |  |  | 13060485 | 13053289 | 11.02% |  |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments (Continued)**

**December 31, 2021**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total <br>Coupon** | **Maturity** | **Principal** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Debt Investments (Continued)</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Diversified Telecommunication Services** | **Diversified Telecommunication Services** |  |  |  |  |  |  |  |  |  |  |
| MetroNet Systems Holdings, LLC | Second Lien Term Loan | LIBOR(M) | 0.75% | 7.00% | 7.75% | 6/2/2029 | $561180 | $553299 | $561011 | 0.48% | E |
| MetroNet Systems Holdings, LLC | Second Lien Delayed Draw Term Loan | LIBOR(M) | 0.75% | 7.00% | 7.75% | 6/2/2029 | $1155370 | 1133745 | 1155024 | 0.97% | E |
|  |  |  |  |  |  |  |  | 1687044 | 1716035 | 1.45% |  |
| **Health Care Equipment & Supplies** | **Health Care Equipment & Supplies** |  |  |  |  |  |  |  |  |  |  |
| Touchstone Acquisition, Inc. (Team Technologies) | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 12/21/2028 | $1806660 | 1770527 | 1770527 | 1.49% | E |
| **Health Care Providers & Services** | **Health Care Providers & Services** |  |  |  |  |  |  |  |  |  |  |
| CBI-Gator Acquisition, LLC | First Lien Term Loan | LIBOR(Q) | 0.75% | 5.75% | 6.50% | 10/25/2027 | $1787733 | 1752683 | 1759129 | 1.48% | E |
| CBI-Gator Acquisition, LLC | First Lien Delayed Draw Term Loan | LIBOR(Q) | 0.75% | 5.75% | 6.50% | 10/25/2027 | $- | (6617) | (5460) | 0.00% | D/E |
| CBI-Gator Acquisition, LLC | Sr Secured Revolver | LIBOR(Q) | 0.75% | 5.75% | 6.50% | 10/25/2027 | $100321 | 97268 | 97813 | 0.08% | E |
| INH Buyer, Inc. (IMS Health) | First Lien Term Loan | LIBOR(S) | 1.00% | 6.00% | 7.00% | 6/28/2028 | $3591000 | 3522704 | 3375540 | 2.85% | E |
| Tempus, LLC (Epic Staffing) | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 2/5/2027 | $1620002 | 1590834 | 1636202 | 1.38% | E |
| Tempus, LLC (Epic Staffing) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 2/5/2027 | $611351 | 593124 | 627689 | 0.53% | E |
|  |  |  |  |  |  |  |  | 7549996 | 7490913 | 6.32% |  |
| **Health Care Technology** |  |  |  |  |  |  |  |  |  |  |  |
| Appriss Health, LLC (PatientPing) | First Lien Term Loan | LIBOR(Q) | 1.00% | 7.25% | 8.25% | 5/6/2027 | $1141285 | 1121709 | 1120742 | 0.94% | E |
| Appriss Health, LLC (PatientPing) | First Lien Revolver | LIBOR(Q) | 1.00% | 7.25% | 8.25% | 5/6/2027 | $- | (1358) | (1370) | 0.00% | D/E |
| ESO Solutions, Inc. | First Lien Term Loan | LIBOR(S) | 1.00% | 7.00% | 8.00% | 5/3/2027 | $2696287 | 2645710 | 2696287 | 2.28% | E |
| ESO Solutions, Inc. | First Lien Revolver | LIBOR(S) | 1.00% | 7.00% | 8.00% | 5/3/2027 | $- | (4358) | - | 0.00% | D/E |
| Gainwell Acquisition Corp. | Second Lien Term Loan | LIBOR(Q) | 1.00% | 8.00% | 9.00% | 10/2/2028 | $800332 | 796500 | 815538 | 0.69% | E |
|  |  |  |  |  |  |  |  | 4558203 | 4631197 | 3.91% |  |
| **Insurance** |  |  |  |  |  |  |  |  |  |  |  |
| Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance) | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 11/1/2028 | $2146485 | 2115284 | 2103555 | 1.77% | E |
| Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 5.75% | 6.75% | 11/1/2027 | $410018 | 401337 | 398093 | 0.34% | E |
| Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance) | Sr Secured Revolver | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 11/1/2027 | $- | (1450) | (1987) | 0.00% | D/E |
|  |  |  |  |  |  |  |  | 2515171 | 2499661 | 2.11% |  |
| **Internet Software & Services** |  |  |  |  |  |  |  |  |  |  |  |
| Astra Acquisition Corp. (Anthology) | Second Lien Term Loan | LIBOR(M) | 0.75% | 8.88% | 9.63% | 10/25/2029 | $2854547 | 2797457 | 2818864 | 2.38% |  |
| Civic Plus, LLC | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 8/25/2027 | $516258 | 506322 | 503816 | 0.43% | E |
| Civic Plus, LLC | First Lien Delay Draw Term Loan | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 8/25/2027 | $- | (4558) | (5832) | 0.00% | D/E |
| Civic Plus, LLC | First Lien Revolver | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 8/25/2027 | $- | (912) | (1166) | 0.00% | D/E |
| Magenta Buyer, LLC (McAfee) | Second Lien Term Loan | LIBOR(Q) | 0.75% | 8.25% | 9.00% | 7/27/2029 | $3000000 | 2958325 | 2987820 | 2.52% |  |
| Pluralsight, Inc. | First Lien Incremental Term Loan | LIBOR(S) | 1.00% | 8.00% | 9.00% | 4/6/2027 | $1020610 | 1001664 | 1018569 | 0.86% | E |
| Suited Connector, LLC | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 12/1/2027 | $1377463 | 1350149 | 1349914 | 1.14% | E |
| Suited Connector, LLC | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 12/1/2027 | $- | (6466) | (6559) | (0.01)% | D/E |
| Suited Connector, LLC | Sr Secured Revolver | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 12/1/2027 | $65593 | 61275 | 61221 | 0.05% | E |
| Tahoe Finco, LLC (Talend) | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 10/1/2028 | $4481637 | 4395030 | 4392004 | 3.71% | E |
| Tahoe Finco, LLC (Talend) | Sr Secured Revolver | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 10/1/2027 | $- | (6485) | (6722) | (0.01)% | D/E |
|  |  |  |  |  |  |  |  | 13051801 | 13111929 | 11.07% |  |
| **IT Services** |  |  |  |  |  |  |  |  |  |  |  |
| Ensono, Inc. | Second Lien Term Loan B | LIBOR(S) | - | 8.00% | 8.35% | 5/28/2029 | $3000000 | 2971227 | 3060000 | 2.59% | E |
| Idera, Inc. | Second Lien Term Loan | LIBOR(S) | 0.75% | 6.75% | 7.50% | 2/4/2029 | $1137871 | 1129799 | 1140716 | 0.96% | E |
|  |  |  |  |  |  |  |  | 4101026 | 4200716 | 3.55% |  |
| **Media** |  |  |  |  |  |  |  |  |  |  |  |
| Kid Distro Holdings, LLC | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 10/1/2027 | $835464 | 819449 | 814161 | 0.68% | E |
| Kid Distro Holdings, LLC | Sr Secured Revolver | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 10/1/2027 | $- | (1431) | (1894) | 0.00% | D/E |
| NEP II, Inc. | Second Lien Term Loan | LIBOR(M) | - | 7.00% | 7.10% | 10/19/2026 | $130856 | 121822 | 128631 | 0.11% |  |
|  |  |  |  |  |  |  |  | 939840 | 940898 | 0.79% |  |
| **Professional Services** |  |  |  |  |  |  |  |  |  |  |  |
| GI Consilio Parent, LLC | Second Lien Term Loan | LIBOR(M) | 0.50% | 7.50% | 8.00% | 5/14/2029 | $3000000 | 2971842 | 3029999 | 2.56% | E |
| JobandTalent USA, Inc. (United Kingdom) | First Lien Term Loan | LIBOR(M) | 1.00% | 8.75% | 9.75% | 2/17/2025 | $2766650 | 2718665 | 2794317 | 2.36% | B/E |
| JobandTalent USA, Inc. (United Kingdom) | First Lien Delayed Draw Term Loan | LIBOR(M) | 1.00% | 8.75% | 9.75% | 2/17/2025 | $1750000 | 1720092 | 1767500 | 1.49% | B/E |
| Security Services Acquisition Sub Corp. (Protos) | First Lien Term Loan | LIBOR(M) | 1.00% | 6.00% | 7.00% | 9/30/2026 | $1467656 | 1454416 | 1444908 | 1.22% | E |
| VT TopCo, Inc. (Veritext) | Second Lien Term Loan | LIBOR(M) | 0.75% | 6.75% | 7.50% | 8/17/2026 | $438158 | 435368 | 440349 | 0.37% | E |
|  |  |  |  |  |  |  |  | 9300383 | 9477073 | 8.00% |  |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments (Continued)**

**December 31, 2021**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total <br>Coupon** | **Maturity** | **Principal** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Debt Investments (Continued)</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |  |  |
| Greystone Affordable Housing Initiatives, LLC | First Lien Delayed Draw Term Loan | LIBOR(S) | 1.25% | 6.00% | 7.25% | 3/2/2026 | $2800000 | $2800000 | $2800000 | 2.36% | C/E |
| **Road & Rail** |  |  |  |  |  |  |  |  |  |  |  |
| Keep Truckin, Inc. | First Lien Term Loan | LIBOR(S) | 1.00% | 7.25% | 8.25% | 4/8/2025 | $4516650 | 4456729 | 4516650 | 3.81% | E |
| **Software** |  |  |  |  |  |  |  |  |  |  |  |
| Aerospike, Inc. | First Lien Term Loan | LIBOR(M) | 1.00% | 7.50% | 8.50% | 12/29/2025 | $958030 | 948478 | 948451 | 0.77% | E |
| Aras Corporation | First Lien Term Loan | LIBOR(Q) | 1.00% | 3.25% Cash + 3.75%PIK | 8.00% | 4/13/2027 | $1538205 | 1509955 | 1519746 | 1.28% | E |
| Aras Corporation | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 3.25% Cash + 3.75%PIK | 8.00% | 4/13/2027 | $162518 | 159653 | 160568 | 0.14% | E |
| Aras Corporation | First Lien Revolver | LIBOR(Q) | 1.00% | 6.50% | 7.50% | 4/13/2027 | $- | (2149) | (1463) | 0.00% | D/E |
| Backoffice Associates Holdings, LLC (Syniti) | First Lien Term Loan | LIBOR(S) | 1.00% | 7.75% | 8.75% | 4/30/2026 | $1999465 | 1946088 | 2017460 | 1.70% | E |
| Backoffice Associates Holdings, LLC (Syniti) | First Lien Revolver | PRIME | - | 6.75% | 10.00% | 4/30/2026 | $65187 | 58379 | 65187 | 0.06% | E |
| CyberGrants Holdings, LLC | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.50% | 7.25% | 9/8/2027 | $2559435 | 2522724 | 2538192 | 2.14% | E |
| CyberGrants Holdings, LLC | First Lien Delayed Draw Term Loan | LIBOR(Q) | 0.75% | 6.50% | 7.25% | 9/8/2027 | $- | (3568) | (2083) | 0.00% | D/E |
| CyberGrants Holdings, LLC | First Lien Revolver | LIBOR(Q) | 0.75% | 6.50% | 7.25% | 9/8/2027 | $- | (3568) | (2083) | 0.00% | D/E |
| Howlco, LLC, (Lone Wolf) | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 10/23/2026 | $744371 | 737366 | 731536 | 0.62% | E |
| Integrate.com, Inc. (Infinity Data, Inc.) | First Lien Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 12/17/2027 | $2835453 | 2779006 | 2778743 | 2.35% | E |
| Integrate.com, Inc. (Infinity Data, Inc.) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 12/17/2027 | $- | (9968) | (10037) | (0.01)% | D/E |
| Integrate.com, Inc. (Infinity Data, Inc.) | Sr Secured Revolver | LIBOR(Q) | 1.00% | 6.00% | 7.00% | 12/17/2027 | $- | (4984) | (5019) | 0.00% | D/E |
| Oversight Systems, Inc. | First Lien Term Loan | LIBOR(M) | 1.00% | 5.25% | 6.25% | 9/24/2026 | $620950 | 609050 | 603625 | 0.51% | E |
| SEP Raptor Acquisition, Inc. (Loopio) (Canada) | First Lien Term Loan | LIBOR(Q) | 1.00% | 7.00% | 8.00% | 3/31/2027 | $1462870 | 1436169 | 1468722 | 1.24% | B/E |
| SEP Raptor Acquisition, Inc. (Loopio) (Canada) | First Lien Revolver | LIBOR(Q) | 1.00% | 7.00% | 8.00% | 3/31/2027 | $- | (2847) | - | 0.00% | B/D/E |
| SEP Vulcan Acquisition, Inc. (Tasktop) (Canada) | First Lien Term Loan | LIBOR(Q) | 1.00% | 7.00% | 8.00% | 3/16/2027 | $1210490 | 1188589 | 1222595 | 1.03% | B/E |
| SEP Vulcan Acquisition, Inc. (Tasktop) (Canada) | Sr Secured Revolver | LIBOR(Q) | 1.00% | 7.00% | 8.00% | 3/16/2027 | $- | (3005) | - | 0.00% | B/D/E |
| Thunder Purchaser, Inc. (Vector Solutions) | First Lien Term Loan | LIBOR(Q) | 1.00% | 5.75% | 6.75% | 6/30/2028 | $2733938 | 2681566 | 2663402 | 2.25% | E |
| Thunder Purchaser, Inc. (Vector Solutions) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 5.75% | 6.75% | 6/30/2028 | $581192 | 561137 | 554197 | 0.47% | E |
| Thunder Purchaser, Inc. (Vector Solutions) | Sr Secured Revolver | PRIME | - | 4.75% | 8.00% | 6/30/2028 | $- | (3785) | (5275) | 0.00% | D/E |
| Zilliant Incorporated | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.50% PIK | 7.25% | 12/21/2027 | $2222222 | 2178028 | 2177778 | 1.84% | E |
| Zilliant Incorporated | First Lien Delayed Draw Term Loan | LIBOR(Q) | 0.75% | 6.50% PIK | 7.25% | 12/21/2027 | $- | (11055) | (11111) | (0.01)% | D/E |
| Zilliant Incorporated | Sr Secured Revolver | LIBOR(Q) | 0.75% | 6.00% | 6.75% | 12/21/2027 | $- | (4422) | (4444) | 0.00% | D/E |
|  |  |  |  |  |  |  |  | 19266837 | 19408687 | 16.38% |  |
| **Specialty Retail** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hanna Andersson, LLC | First Lien Term Loan | LIBOR(M) | 1.00% | 6.25% | 7.25% | 7/2/2026 | $3017634 | 2961117 | 3005564 | 2.53% | E |
| &nbsp;&nbsp;&nbsp;&nbsp;Supergoop, LLC | First Lien Term Loan | LIBOR(Q) | 0.75% | 5.75% | 6.50% | 12/28/2028 | $541998 | 531158 | 531158 | 0.45% | E |
| &nbsp;&nbsp;&nbsp;&nbsp;Supergoop, LLC | Sr Secured Revolver | LIBOR(Q) | 0.75% | 5.75% | 6.50% | 12/28/2028 | $- | (1453) | (1453) | 0.00% | D/E |
|  |  |  |  |  |  |  |  | 3490822 | 3535269 | 2.98% |  |
| **Technology Hardware, Storage & Peripherals** | **Technology Hardware, Storage & Peripherals** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SumUp Holdings Luxembourg S.A.R.L. (United Kingdom) | First Lien Delayed Draw Term Loan | LIBOR(Q) | 1.00% | 7.00% | 8.00% | 2/17/2026 | $46983 | 45108 | 45098 | 0.04% | B/E |
| **Wireless Telecommunication Services** | **Wireless Telecommunication Services** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;OpenMarket, Inc. (Infobip) (United Kingdom) | First Lien Term Loan | LIBOR(Q) | 0.75% | 6.25% | 7.00% | 9/17/2026 | $4505358 | 4397961 | 4376055 | 3.69% | B/E |
| **Total Debt Investments - 133.8% of Net Assets** | **Total Debt Investments - 133.8% of Net Assets** |  |  |  |  |  |  | 114888752 | 115878145 | 97.80% |  |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Investments (Continued)**

**December 31, 2021**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Issuer** | **Instrument** | **Ref** | **Floor** | **Spread** | **Total <br>Coupon** | **Maturity** | **Principal** | **Cost** | **Fair<br>Value** | **% of Total<br>Cash and<br>Investments** | **Notes** |
| **<u>Equity Securities</u>** |  |  |  |  |  |  |  |  |  |  |  |
| **Diversified Consumer Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Razor Group GmbH (Germany) | Warrants to Purchase Preferred Series A1 Shares |  |  |  |  | 4/28/2028 | 61 | $- | $567701 | 0.48% | B/E/F/G |
| **Diversified Financial Services** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MXP Prime Platform GmbH (SellerX) | Warrants to Purchase Preferred B Shares |  |  |  |  | 11/23/2028 | 8 | - | 21117 | 0.02% | B/E/F/G |
| &nbsp;&nbsp;&nbsp;&nbsp;Worldremit Group Limited (United Kingdom) | Warrants to Purchase Series D Stock |  |  |  |  | 2/11/2031 | 2394 | - | 58868 | 0.05% | B/E/F/G |
| &nbsp;&nbsp;&nbsp;&nbsp;Worldremit Group Limited (United Kingdom) | Warrants to Purchase Series E Stock |  |  |  |  | 8/27/2031 | 299 | - | 3205 | 0.00% | B/E/F/G |
|  |  |  |  |  |  |  |  | - | 83190 | 0.07% |  |
| **Total Equity Securities - 0.8% of Net Assets** | **Total Equity Securities - 0.8% of Net Assets** |  |  |  |  |  |  | - | 650891 | 0.55% |  |
| **Total Investments - 134.6% of Net Assets** | **Total Investments - 134.6% of Net Assets** |  |  |  |  |  |  | $114888752 | $116529036 | 98.35% |  |
| **Cash and Cash Equivalents - 2.3% of Net Assets** | **Cash and Cash Equivalents - 2.3% of Net Assets** |  |  |  |  |  |  |  | $1957486 | 1.65% |  |
| **Total Cash and Investments - 136.9% of Net Assets** | **Total Cash and Investments - 136.9% of Net Assets** |  |  |  |  |  |  |  | $118486522 | 100.00% |  |

---

Notes to Schedule of Investments:

(A) Debt investments include investments in bank debt that generally are bought and sold among institutional investors in transactions not subject to registration under the Securities Act of 1933. Such transactions are generally subject to contractual restrictions, such as approval of the agent or borrower.

(B) Non-U.S. company or principal place of business outside the U.S. and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any nonqualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(C) Deemed an investment company under Section 3(c) of the Investment Company Act and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any nonqualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(D) Negative balances relate to an unfunded commitment that was acquired and/or valued at a discount.

(E) Inputs in the valuation of this investment included certain unobservable inputs that were significant to the valuation as a whole.

(F) Restricted security. (See Note 10)

(G) Non-income producing investment.

(H) In addition to the stated coupon, investment has an exit fee payable upon repayment of the loan in an amount equal to the percentage of the original principal amount shown.

LIBOR or EURIBOR resets monthly (M), quarterly (Q) or semiannually (S).

Aggregate acquisitions and aggregate dispositions of investments, other than government securities, totaled $116,897,453 and $4,270,573, respectively, for the year ended December 31, 2021. Aggregate acquisitions include investment assets received as payment in kind. Aggregate dispositions include principal paydowns on and maturities of debt investments. The total value of restricted securities and bank debt as of December 31, 2021 was $116,529,036, or 98.4% of total cash and investments of the Company. As of December 31, 2021, approximately 21.8% of the total assets of the Company were not-qualifying assets under Section 55(a) of the 1940 Act.

See accompanying notes to the financial statements.

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements**

**December 31, 2022**

**1. Organization and Nature of Operations**

BlackRock Direct Lending Corp. (the "Company") is a Delaware corporation formed on October 12, 2020 as an externally managed, closed-end, non-diversified management investment company. The Company elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Company's investment objective is to achieve high risk-adjusted returns produced from current income generated by investing primarily in senior secured corporate debt instruments. The Company invests primarily in middle-market companies headquartered in North America. The Company commenced operations on November 30, 2020.

The Company has elected to be treated as a regulated investment company ("RIC") for U.S. federal income tax purposes. As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements.

BlackRock Capital Investment Advisors, LLC, a wholly owned, indirect subsidiary of BlackRock, Inc., serves as the advisor of the Company (the "Advisor"). BlackRock Financial Management, Inc. serves as the administrator of the Company (the "Administrator"), and is affiliated with the Advisor. Company management consists of the Advisor and the Company's board of directors (the "Board of Directors"). The Advisor directs and executes the day-to-day operations of the Company, subject to oversight from the Board of Directors, which sets the broad policies of the Company. The Board of Directors of the Company has delegated investment management of the Company's assets to the Advisor. The Board of Directors consists of five persons, three of whom are independent.

**2. Summary of Significant Accounting Policies**

**Basis of Presentation**

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification ("ASC") Topic 946, Financial Services – Investment Companies. The following is a summary of the significant accounting policies of the Company.

**Use of Estimates**

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well the reported amounts of revenues and expenses during the reporting periods presented. Although management believes these estimates and assumptions to be reasonable, actual results could differ from those estimates and such differences could be material.

**Investment Valuation**

Pursuant to Rule 2a-5 (the "Rule") under the 1940 Act, the Board of Directors designated the Advisor as the Company's valuation designee (the "Valuation Designee") to perform certain fair value functions, including performing fair value determinations and has approved policies and procedures adopted by the Advisor to seek to ensure compliance with the requirements of the Rule.

Investments are recorded at fair value in accordance with GAAP, based upon the principles and methods of valuation set forth in the policies adopted by the Valuation Designee and approved by the Board of Directors. Fair value is generally defined as the amount for which an investment would be sold in an orderly transaction between market participants at the measurement date.

All investments are valued at least quarterly based on quotations or other affirmative pricing from independent third-party sources, with the exception of investments priced directly by the Valuation Designee which in the aggregate comprise less than 5% of the capitalization of the Company. Investments listed on a recognized exchange or market quotation system, whether U.S. or foreign, are valued using the closing price on the date of valuation.

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**2. Summary of Significant Accounting Policies (Continued)**

Investments not listed on a recognized exchange or market quotation system, but for which reliable market quotations are readily available are valued using prices provided by a nationally recognized pricing service or by using quotations from broker-dealers.

Investments for which market quotations are either not readily available or are determined to be unreliable are priced at fair value using affirmative valuations performed by independent valuation services approved by the Valuation Designee or, for investments aggregating less than 5% of the total assets of the Company, using valuations determined directly by the Valuation Designee. Such valuations are determined under documented valuation policies and procedures reviewed and approved by a committee established by the Valuation Designee (the "Valuation Committee").

Generally, to increase objectivity in valuing the investments, the Valuation Designee will utilize external measures of value, such as public markets or third-party transactions, whenever possible. The Valuation Designee's valuation is not based on long-term work-out value, immediate liquidation value, nor incremental value for potential changes that may take place in the future. The values assigned to investments are based on available information and do not necessarily represent amounts that might ultimately be realized, as these amounts depend on future circumstances and cannot reasonably be determined until the individual investments are actually liquidated. Such circumstances may include macroeconomic, geopolitical and other events and conditions such as the current COVID-19 pandemic that may significantly impact the profitability or viability of businesses in which the Company is invested, and therefore may significantly impact the return on the Company's investments. The foregoing policies apply to all investments, including any in companies and groups of affiliated companies aggregating more than 5% of the Company's assets.

Fair valuations of investments in each asset class are determined using one or more methodologies including market quotations, the market approach, income approach, or, in the case of recent investments, the cost approach, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. Such information may include observed multiples of earnings and/or revenues at which transactions in securities of comparable companies occur, with appropriate adjustments for differences in company size, operations or other factors affecting comparability.

The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present value amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. The discount rates used for such analyses reflect market yields for comparable investments, considering such factors as relative credit quality, capital structure, and other factors.

In following these approaches, the types of factors that may be taken into account also include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company's ability to make payments, its earnings and cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition comparables, comparable costs of capital, the principal market in which the investment trades and enterprise values, among other factors.

Investments may be categorized based on the types of inputs used in valuing such investments. The level in the GAAP valuation hierarchy in which an investment falls is based on the lowest level input that is significant to the valuation of the investment in its entirety. Transfers between levels are recognized as of the beginning of the reporting period.

At December 31, 2022, the Company's investments were categorized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Level** | **Basis for Determining Fair Value** | **Bank Debt (1)** | **Equity<br>Securities** | **Total** |
| 2 | Other direct and indirect observable market inputs (2) | $10005500 | $— | $10005500 |
| 3 | Independent third-party valuation sources that<br> employ significant unobservable inputs | 202878661 | 549038 | 203427699 |
| Total |  | $212884161 | $549038 | $213433199 |

---

------

(1)Includes senior secured loans

(2)For example, quoted prices in inactive markets or quotes for comparable investments

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**2. Summary of Significant Accounting Policies (Continued)**

Unobservable inputs used in the fair value measurement of Level 3 investments as of December 31, 2022 included the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Asset Type** | **Fair Value** | **Valuation Technique** | **Unobservable Input** | **Range (Weighted Avg.) (1)** |
| Bank Debt | $195352498 | Income approach | Discount rate | 9.4% - 17.9% (12.6%) |
|  | 6926778 | Market quotations | Indicative bid/ask quotes | 1 (1) |
|  | 599385 | Option Pricing Model | Implied volatility | 65.0% (65.0%) |
|  |  |  | Term | 2.3 years (2.3 years) |
| Equity | 103803 | Market comparable companies | Revenue Multiples | 1.5x (1.5x) |
|  | 445235 | Option Pricing Model | EBITDA/Revenue multiples | 2.5x-12.5x (4.4x) |
|  |  |  | Implied volatility | 55.0%-65.0% (63.8%) |
|  |  |  | Term | 1 year-4.3 years (2.4 years) |
|  | $203427699 |  |  |  |

---

------

(1)Weighted by fair value

Certain fair value measurements may employ more than one valuation technique, with each valuation technique receiving a relative weight between 0% and 100%. Generally, a change in an unobservable input may result in a change to the value of an investment as follows:

---

| | | |
|:---|:---|:---|
| **Input** | **Impact to Value if Input Increases** | **Impact to Value if Input Decreases** |
| Discount rate | Decrease | Increase |
| Revenue multiples | Increase | Decrease |
| EBITDA multiples | Increase | Decrease |
| Book value multiples | Increase | Decrease |
| Implied volatility | Increase | Decrease |
| Term | Increase | Decrease |
| Yield | Increase | Decrease |

---

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**2. Summary of Significant Accounting Policies (Continued)**

Changes in investments categorized as Level 3 during the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Independent Third-Party Valuation** | **Independent Third-Party Valuation** | **Independent Third-Party Valuation** |
|  | **Bank Debt** | **Equity<br>Securities** | **Total** |
| Beginning balance | $108058825 | $650891 | $108709716 |
| Net realized and unrealized gains (losses) | (5768737) | (101853) | (5870590) |
| Acquisitions (1) | 110801934 |  | 110801934 |
| Dispositions | (13032226) |  | (13032226) |
| Transfers into Level 3 (2) | 2818865 |  | 2818865 |
| Ending balance | $202878661 | $549038 | $203427699 |
| Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) | $(5557142) | $(101853) | $(5658995) |

---

------

(1)Includes payments received in kind and accretion of original issue and market discounts

(2)Comprised of one investment that was transferred from Level 2 due to reduced number of market quotes

At December 31, 2021, the Company's investments were categorized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Level** | **Basis for Determining Fair Value** | **Bank Debt** | **Equity<br>Securities** | **Total** |
| 2 | Other direct and indirect observable market<br> inputs (1) | $7819320 | $— | 7819320 |
| 3 | Independent third-party valuation sources that employ significant unobservable inputs | 108058825 | 650891 | 108709716 |
| Total |  | $115878145 | $650891 | $116529036 |

---

------

(1)For example, quoted prices in inactive markets or quotes for comparable investments

Unobservable inputs used in the fair value measurement of Level 3 investments as of December 31, 2021 included the following:

---

| | | | |
|:---|:---|:---|:---|
| **Asset Type** | **Fair Value** | **Unobservable Input** | **Range (Weighted Avg.) (1)** |
| Bank Debt | $101178882 | Discount rate | 6.9% - 12.8% (8.8%) |
|  | 6052548 | Indicative bid/ask quotes | 1 (1) |
|  | 827395 | EBITDA/Revenue multiples | 4.8x (4.8x) |
|  |  | Implied volatility | 65.0% (65.0%) |
|  |  | Term | 3.3 years (3.3 years) |
| Equity | 650891 | EBITDA/Revenue multiples | 4.8x (4.8x) |
|  |  | Implied volatility | 64.3% (64.3%) |
|  |  | Term | 3.3 years (3.3 years) |
|  | $108709716 |  |  |

---

------

(1)Weighted by fair value

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**2. Summary of Significant Accounting Policies (Continued)**

Changes in investments categorized as Level 3 during the three months ended December 31, 2021 were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Independent Third-Party Valuation** | **Independent Third-Party Valuation** | **Independent Third-Party Valuation** |
|  | **Bank Debt** | **Equity<br>Securities** | **Total** |
| Beginning balance | $— | $— | $— |
| Net realized and unrealized gains (losses) | 932948 | 650891 | 1583839 |
| Acquisitions (1) | 108454038 |  | 108454038 |
| Dispositions | (1328161) |  | (1328161) |
| Ending balance | $108058825 | $650891 | $108709716 |
| Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above) | $921906 | $650891 | $1572797 |

---

------

(1)Includes payments received in kind and accretion of original issue and market discounts

**Investment Transactions**

Investment transactions are recorded on the trade date, except for private transactions that have conditions to closing, which are recorded on the closing date. The cost of investments purchased is based upon the purchase price plus those professional fees which are specifically identifiable to the investment transaction. Realized gains and losses on investments are recorded based on the specific identification method, which typically allocates the highest cost inventory to the basis of investments sold.

**Cash and Cash Equivalents**

Cash consists of amounts held in accounts with the custodian bank. Cash equivalents consist of highly liquid investments with an original maturity of generally 60 days or less and may not be insured by the FDIC or may exceed federally insured limits. Cash equivalents are classified as Level 1 in the GAAP valuation hierarchy. At December 31, 2022, included in cash and cash equivalents was $1,113,076 (0.6% of net assets) held in the JP Morgan U.S. Treasury Plus Money Market Fund with a 7-day yield of 4.12%. At December 31, 2021, included in cash and cash equivalents was $1,169,710 (1.4% of net assets) held in the JP Morgan U.S. Treasury Plus Money Market Fund with a 7-day yield of 0.01%. There was no restricted cash at December 31, 2022 or 2021.

**Restricted Investments**

The Company may invest without limitation in instruments that are subject to legal or contractual restrictions on resale. These instruments generally may be resold to institutional investors in transactions exempt from registration or to the public if the securities are registered. Disposal of these investments may involve time-consuming negotiations and additional expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted investments is included at the end of the Schedules of Investments. Restricted investments, including any restricted investments in affiliates, are valued in accordance with the investment valuation policies discussed above.

**Foreign Currency Investments**

The Company may invest in instruments traded in foreign countries and denominated in foreign currencies. Such positions are converted at the respective closing foreign exchange rates in effect at December 30, 2022 and December 31, 2021 and reported in U.S. dollars. Purchases and sales of investments and income and expense items denominated in foreign currencies, when they occur, are translated into U.S. dollars based on the foreign exchange rates in effect on the respective dates of such transactions. The portion of gains and losses on foreign investments resulting from fluctuations in foreign currencies is included in net realized and unrealized gain or loss from investments. The Company did not hold any investments denominated in foreign currency at December 31, 2022 and December 31, 2021.

Investments in foreign companies and securities of foreign governments may involve special risks and considerations not typically associated with investing in U.S. companies and securities of the U.S. Government. These risks include, among other things, revaluation of currencies, less reliable information about issuers, different transaction clearance and settlement practices, and potential

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**2. Summary of Significant Accounting Policies (Continued)**

future adverse political and economic developments. Moreover, investments in foreign companies and securities of foreign governments and their markets may be less liquid and their prices more volatile than those of comparable U.S. companies and the U.S. Government.

**Organization and Offering Costs** 

Costs incurred to organize the Company are expensed as incurred. During the period from November 30, 2020 (inception) to December 31, 2021, the Company incurred $71,685 in organizational expenses. During the year ended December 31, 2022, the Company did not incur any additional organizational expenses. From November 30, 2020 through December 31, 2022, the Company had incurred a total of $267,621 in offering costs, of which $160,573 has been charged to paid-in capital. Remaining offering costs will be charged to paid-in capital as additional capital commitments are called. The Company will not bear more than $1,000,000 for organization and offering costs.

**Deferred Debt Issuance Costs**

Certain costs incurred in connection with the issuance of debt of the Company were capitalized and are being amortized on a straight-line basis over the estimated life of the respective instruments. The impact of utilizing the straight-line amortization method versus the effective-interest method is not material to the operations of the Company.

**Revenue Recognition**

Interest and dividend income, including income paid in kind, is recorded on an accrual basis, when such amounts are considered collectible. Origination, structuring, closing, commitment and other upfront fees, including original issue discounts, earned with respect to capital commitments are generally amortized or accreted into interest income over the life of the respective debt investment, as are end-of-term or exit fees receivable upon repayment of a debt investment. Other fees, including certain amendment fees, prepayment fees and commitment fees on broken deals, are recognized as earned. Prepayment fees and similar income due upon the early repayment of a loan or debt security are recognized when earned and are included in interest income.

Certain debt investments are purchased at a discount to par as a result of the underlying credit risks and financial results of the issuer, as well as general market factors that influence the financial markets as a whole. Discounts on the acquisition of corporate bonds are generally amortized using the effective-interest or constant-yield method assuming there are no questions as to collectability. When principal payments on a loan are received in an amount in excess of the loan's amortized cost, the excess principal payments are recorded as interest income.

**Income Taxes**

The Company intends to comply with the applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code"), pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. Accordingly, no provision for income taxes is required in the financial statements. In accordance with ASC Topic 740 - Income Taxes, the Company recognizes in its financial statements the effect of a tax position when it is determined that such position is more likely than not, based on the technical merits, to be sustained upon examination.

The tax returns of the Company remain open for examination by tax authorities for a period of three years from the date they are filed. No such examinations are currently pending. Management has analyzed tax laws and regulations and their application to the Company as of December 31, 2022, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the financial statements.

The final tax characterization of distributions is determined after the fiscal year and is reported on Form 1099 and in the Company's annual report to stockholders. Distributions can be characterized as ordinary income, capital gains and/or return of capital. As of December 31, 2022, the Company had no non-expiring capital loss carryforwards available to offset future realized capital gains.

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**2. Summary of Significant Accounting Policies (Continued)** 

GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of December 31, 2022, and December 31, 2021, the following permanent differences attributable to the treatment of expenses were reclassified to paid-in capital as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Paid-in Capital | $— | $(134) |
| Accumulated earnings (losses) |  | 134 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tax character of distributions paid was as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Ordinary income | $11638646 | $2216478 |
| Tax return of capital |  |  |
|  | $11638646 | $2216478 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tax-basis components of distributable earnings (accumulated deficit) applicable to the common stockholders of the Company at December 31, 2022 and December 31, 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Undistributed ordinary income | $341562 | $97678 |
| Net unrealized gains (losses) (1) | (5551581) | 1412644 |
| Total accumulated earnings (losses) | $(5210019) | $1510322 |

---

------

(1)The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the treatment of expenses and will reverse in subsequent periods.

&nbsp;&nbsp;&nbsp;&nbsp;As of December 31, 2022 and December 31, 2021, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Tax basis of investments | $218927365 | $114888752 |
| Unrealized appreciation | 958845 | 1669324 |
| Unrealized depreciation | (6453009) | (29040) |
| Net unrealized appreciation (depreciation) | $(5494164) | $1640284 |

---

As of December 31, 2022, the following information is provided with respect to the ordinary income distributions paid by the Company.

---

| | |
|:---|:---|
|  | **December 31, 2022** |
| Interest Related Dividends for Non-U.S. Residents (1) | 10352452 |

---

------

(1) Represents the maximum amount allowable by law as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.

**Recent Accounting Pronouncements**

In March 2020 and January 2021, the FASB issued ASU No. 2020-04 and ASU No. 2021-01, respectively, "Reference Rate Reform (Topic 848)," which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset date of Topic 848, which deferred the sunset date of this guidance to December 31, 2024. The Company is currently evaluating the impact of adopting ASU 2020-04 on its financial statements.

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**3. Management Fees, Incentive Fees and Other Expenses** 

On November 30, 2020, the Company entered into an investment management agreement with the Advisor (the "Investment Management Agreement"). Under the Investment Management Agreement, the Advisor, for its service to the Company, is entitled to receive a management fee from the Company and an incentive fee. The management fee is calculated at an annual rate of 0.90% of the Company's total assets (excluding cash and cash equivalents) and payable quarterly in arrears. For the period from the date the Company first issues shares of common stock to one or more investors (other than the Advisor and its affiliates) through the end of the first calendar quarter, no management fee is payable. Subsequently, the management fee is calculated based on the value of the Company's total assets (excluding cash and cash equivalents) at the end of the most recently completed calendar quarter. The management fees for any partial quarter are appropriately prorated.

Incentive fee is only incurred to the extent the Company's cumulative total return (after incentive fee) exceeds a 6% annual rate on daily weighted-average unreturned capital contributions. Subject to that limitation, incentive fee is calculated on net investment income (before incentive fee) and net realized gains (net of any unrealized depreciation) at a rate of 12.5%. Incentive fee is computed as the difference between incentive fee earned and incentive fee paid, subject to the total return hurdle, on a cumulative basis, and is payable quarterly in arrears. As of December 31, 2022, the Company's cumulative performance exceeded the total return hurdle and as such the incentive fee for the year included $201,710.

Incentive fees on capital gains accrued on a liquidation basis (but not payable) under GAAP as of December 31, 2022 were $(165,778), a reversal of the amount accrued as of December 31, 2021. For the year ended December 31, 2021 incentive fees on capital gains accrued on a liquidation basis (but not payable) under GAAP were $165,778. There can be no assurance that unrealized capital appreciation and depreciation will be realized in the future, or that any accrued capital gains incentive fee will become payable under the Investment Management Agreement. Incentive fee amounts on capital gains actually paid by the Company will specifically exclude consideration of unrealized capital appreciation, consistent with requirements under the Investment Advisers Act of 1940 (the "Advisers Act") and the Investment Management Agreement.

The Company bears all expenses incurred in connection with its business, including fees and expenses of outside contracted services, such as custodian, administrative, legal, audit and tax preparation fees, costs of valuing investments, insurance costs, brokers' and finders' fees relating to investments, and any other transaction costs associated with the purchase and sale of investments.

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**4. Debt**

On December 11, 2020, the Company issued to each of 110 separate investors an unsecured promissory note with a principal amount of $1,000, at par. The Company pays interest on the unpaid principal amount of the notes at a rate of 12.00% per annum payable semi-annually in arrears. The notes mature on December 31, 2050.

On June 18, 2021, the Company entered into a three-year revolving line of credit with Sumitomo Mitsui Banking Corporation as administrative agent, lead arranger and as a lender, with a capacity of up to $75 million, secured by the unfunded equity commitments of the Company's investors (the "Capital Call Facility"). The Capital Call Facility matures on June 16, 2023. Interest on the Capital Call Facility accrues at a rate equal to LIBOR plus 1.95% per annum, or, for short-term draws, a rate equal to the Prime Rate plus 0.95%, the Federal Funds Rate plus 1.45%, or one-month LIBOR plus 1.95%, whichever is highest. Commitment fees on the Capital Call Facility accrue at a rate of 0.225% per annum on the undrawn amount of the commitment.

Total expenses related to debt included the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** | **For the period from November 30 (Inception) to December 31,** |
|  | **2022** | **2021** | **2020** |
| Interest expense | $1532056 | $256451 | $734 |
| Amortization of deferred debt issuance costs | 310284 | 167718 |  |
| Commitment fees | 81154 | 22403 |  |
| Total | $1923494 | $446572 | $734 |

---

At December 31, 2022, there was $37.5 million of debt outstanding under the Capital Call Facility, with a weighted-average interest rate, excluding fees of 3.94%. At December 31, 2021, there was $22.0 million of debt outstanding under the Capital Call Facility, with a weighted-average interest rate, excluding fees of 2.06%. Outstanding debt is carried at amortized cost in the Statements of Assets and Liabilities. As of December 31, 2022 and December 31, 2021, the estimated fair value of the outstanding debt approximated their carrying values.

**5. Commitments, Contingencies, Concentration of Credit Risk and Off-Balance Sheet Risk**

The Company conducts business with brokers and dealers that are primarily headquartered in New York and Los Angeles and are members of the major securities exchanges. Banking activities are conducted with a firm headquartered in the Boston area.

In the normal course of business, investment activities involve executions, settlement and financing of various transactions resulting in receivables from, and payables to, brokers, dealers, and the custodian. These activities may expose the Company to risk in the event that such parties are unable to fulfill contractual obligations. Management does not anticipate any material losses from counterparties with whom it conducts business. Consistent with standard business practice, the Company enters into contracts that contain a variety of indemnifications and is engaged from time to time in various legal actions. The maximum exposure under these arrangements and activities is unknown. However, management expects the risk of material loss to be remote.

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**5. Commitments, Contingencies, Concentration of Credit Risk and Off-Balance Sheet Risk (Continued)**

The Schedules of Investments include certain revolving loan facilities and other commitments with unfunded balances at December 31, 2022 and December 31, 2021 as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Unfunded Balances** | **Unfunded Balances** |
| **Issuer** | **Maturity** | **December 31, 2022** | **December 31, 2021** |
| 2-10 Holdco, Inc. | 3/26/2026 | $95345 | $95345 |
| Accordion Partners LLC | 8/29/2029 | 1086379 | N/A |
| Alcami Corporation | 12/21/2028 | 208524 | N/A |
| ALCV Purchaser, Inc. (AutoLenders) | 4/15/2026 | N/A | 92635 |
| Alera Group, Inc. | 10/2/2028 | 294478 | N/A |
| Alpine Acquisition Corp II (48Forty) | 11/30/2026 | 266026 | N/A |
| AmeriLife Holdings, LLC | 8/31/2029 | 456227 | N/A |
| Appriss Health, LLC (PatientPing) | 5/6/2027 | 76086 | 76086 |
| Aras Corporation | 4/13/2027 | 81259 | 121888 |
| Avalara, Inc. | 10/19/2028 | 454858 | N/A |
| Backoffice Associates Holdings, LLC (Syniti) | 4/30/2026 | 54757 | 195562 |
| BW Holding, Inc. (Brook & Whittle) | 12/14/2029 | N/A | 153411 |
| CBI-Gator Acquisition, LLC | 10/25/2027 | 403964 | N/A |
| Cherry Bekaert Advisory, LLC | 6/30/2028 | 346086 | 397694 |
| Civic Plus, LLC | 8/25/2027 | 92051 | 290395 |
| Colony Display, LLC | 6/30/2026 | N/A | 490260 |
| CSG Buyer, Inc. (Core States) | 3/31/2028 | 639097 | N/A |
| CyberGrants Holdings, LLC | 9/8/2027 | 644621 | 501850 |
| Elevate Brands OpCo, LLC | 3/15/2027 | 2408880 | N/A |
| Emerald Technologies (U.S.) AcquisitionCo, Inc. | 12/29/2026 | 137033 | N/A |
| ESO Solutions, Inc. | 5/3/2027 | 244561 | 244561 |
| Foreside Financial Group, LLC | 9/30/2027 | 127908 | N/A |
| Freedom Financial Network Funding, LLC | 9/21/2027 | 994544 | N/A |
| Fusion Holding Corp. | 9/15/2027 | 340879 | N/A |
| Fusion Risk Management, Inc. | 8/30/2028 | 377961 | N/A |
| GC Champion Acquisition LLC | 8/21/2028 | 788388 | N/A |
| GC Waves Holdings, Inc. (Mercer) | 8/13/2026 | 54633 | N/A |
| Grey Orange Incorporated | 5/6/2026 | 244474 | N/A |
| Greystone Select Company II, LLC (Passco) | 3/21/2027 | 2668930 | N/A |
| GTY Technology Holdings Inc. | 7/9/2029 | 318422 | N/A |
| Homerenew Buyer, Inc. (Project Dream) | 11/23/2027 | 1045346 | 1104131 |
| Howlco, LLC, (Lone Wolf) | 9/8/2027 | N/A | 1870 |
| ICIMS, Inc. | 8/18/2028 | 1584575 | N/A |
| Integrate.com, Inc. (Infinity Data, Inc.) | 12/17/2027 | 752775 | 752775 |
| Integrity Marketing Acquisition, LLC | 8/27/2025 | 2880792 | N/A |
| Kaseya, Inc. | 6/25/2029 | 421554 | N/A |
| Kid Distro Holdings, LLC | 10/1/2027 | 74263 | 74263 |
| Lightspeed Solutions, LLC | 3/1/2028 | 734415 | N/A |
| Madison Logic Holdings, Inc. | 12/30/2027 | 157087 | N/A |
| Oak Purchaser, Inc. (DaySmart) | 4/28/2028 | 374409 | N/A |
| Opco Borrower, LLC (Giving Home Healthcare) | 8/19/2027 | 186139 | N/A |
| Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance) | 11/1/2028 | 217515 | N/A |
| PHC Buyer, LLC (Patriot Home Care) | 5/4/2028 | 577448 | 285602 |
| Porcelain Acquisition Corporation (Paramount) | 4/30/2027 | N/A | 375447 |
| Pueblo Mechanical and Controls, LLC | 8/23/2028 | 966563 | N/A |
| Sailpoint Technologies Holdings, Inc. | 8/16/2028 | 132507 | N/A |
| Security Services Acquisition Sub Corp. (Protos) | 9/30/2026 | 3678 | N/A |
| SellerX Germany Gmbh & Co. Kg (Germany) | 11/23/2025 | 1211157 | 1588712 |
| SEP Raptor Acquisition, Inc. (Loopio) (Canada) | 3/31/2027 | 162541 | 162541 |
| SEP Vulcan Acquisition, Inc. (Tasktop) (Canada) | 3/16/2027 | N/A | 172927 |
| Smarsh, Inc. | 2/19/2029 | 367136 | N/A |
| Streamland Media Midco LLC | 8/31/2023 | 1083996 | N/A |
| Suited Connector, LLC | 12/1/2027 | 327967 | 481019 |
| SumUp Holdings Luxembourg S.A.R.L. (United Kingdom) | 2/17/2026 | N/A | 47302 |
| Sunland Asphalt & Construction, LLC | 9/30/2025 | N/A | 209025 |
| Supergoop, LLC | 12/29/2028 | 72628 | 72628 |
| Tahoe Finco, LLC (Talend) | 10/1/2027 | 336123 | 336123 |
| Tempus, LLC (Epic Staffing) | 2/5/2027 | N/A | 1022432 |
| Thermostat Purchaser III, Inc. (Reedy Industries) | 8/31/2029 | 184181 | 184181 |
| Thunder Purchaser, Inc. (Vector Solutions) | 6/30/2028 | 134346 | 669556 |
| Wealth Enhancement Group, LLC | 10/4/2027 | 1703089 | N/A |
| Wharf Street Rating Acquisition LLC (KBRA) | 12/10/2027 | 265685 | 265685 |
| Zendesk Inc. | 11/22/2028 | 1038830 | N/A |
| Zilliant Incorporated | 12/21/2027 | 777778 | 777778 |
| Total Unfunded Balances |  | $31680894 | $11243684 |

---

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**6. Other Related Party Transactions**

The Company, the Advisor and affiliates may be considered related parties. From time to time, the Advisor advances payments to third parties on behalf of the Company and receives reimbursement from the Company. At December 31, 2022 and December 31, 2021, amounts reimbursable to the Advisor totaled $285,287 and $142,784 respectively, as reflected in the Statements of Assets and Liabilities.

Pursuant to an administration agreement between the Administrator and the Company (the "Administration Agreement"), the Administrator may be reimbursed for costs and expenses incurred by the Administrator for office space rental, office equipment and utilities allocable to the Company, as well as costs and expenses incurred by the Administrator or its affiliates relating to any administrative, operating, or other non-investment advisory services provided by the Administrator or its affiliates to the Company. For the years ended December 31, 2022, 2021 and for the period from November 1 (Inception) to December 31, 2020, $375,798, $381,314, and $0 of such costs were allocated to the Company and subject to reimbursement pursuant to the Administration Agreement, respectively.

**7. Stockholders' Equity and Dividends**

As of December 31, 2022, the Company had received $301.0 million of equity commitments to purchase shares of the Company's common stock. As of December 31, 2022, $180.6 million (60.0% of total commitments) had been called. During the year ended December 31, 2022, the Company issued 9,087,597 shares, with an average purchase price of $10.49 per share, and par value of $0.001 per share.

Dividends and distributions to common stockholders are recorded on the ex-dividend date. Distributions are declared considering annual taxable income available for distribution to stockholders and the amount of taxable income carried over from the prior year for distribution in the current year. The following table summarizes the Company's dividends declared and paid for the year ended December 31, 2022.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Type** | **Amount Per Share** | **Total Amount** |
| May 16, 2022 | June 16, 2022 | June 30, 2022 | Regular | $0.12 | $1401289 |
| July 28, 2022 | September 16, 2022 | September 30, 2022 | Regular | $0.17 | $2500426 |
| October 27, 2022 | December 16, 2022 | December 30, 2022 | Regular | $0.19 | $3386931 |
| December 15, 2022 | December 29, 2022 | January 12, 2023 | Regular | $0.25 | $4350000 |
|  |  |  |  | $0.73 | $11638646 |

---

**8. Subsequent Events** 

The Company has reviewed subsequent events occurring through the date that these financial statements were avaialble to be issued, and determined that no subsequent events occurred requiring accrual or disclosure.

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**9. Financial Highlights**

The financial highlights below show the Company's results of operations for the years ended December 31, 2022, 2021 and the period from November 30 (Inception) to December 31, 2020.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** | **For the period from November 30 (Inception) to December 31,** |
|  | **2022** | **2021** | **2020** |
| **Per Common Share** |  |  |  |
| Per share NAV at beginning of period | $10.34 | $9.92 | $10.00 |
| Offering costs |  |  | (0.01) |
| Investment operations: (1) |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | 0.94 | 0.39 | (0.06) |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) | (0.52) | 0.30 | (0.01) |
| Total from investment operations | 0.42 | 0.69 | (0.07) |
| Dividends to common shareholders | (0.73) | (0.27) |  |
| Per share NAV at end of period | $10.03 | $10.34 | $9.92 |
| Total return based on net asset value: (2) | 4.06% | 6.96% | (0.72)% |
| Shares outstanding at end of period | 17459576 | 8371979 | 3010000 |
| Ratios to average net asset value: (3) |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | 9.48% | 3.94% | (1.25)% |
| &nbsp;&nbsp;&nbsp;Expenses before incentive fee (4) | 3.59% | 3.59% | 1.30% |
| &nbsp;&nbsp;&nbsp;Expenses and incentive fee (5) | 3.62% | 4.45% | 1.30% |
| Ending net asset value | $175109476 | $86602358 | $29861922 |
| Portfolio turnover rate | 8.1% | 8.0% | 0.0% |
| Weighted-average debt outstanding | $38623699 | $8718219 | $93750 |
| Weighted-average interest rate on debt | 4.2% | 3.2% | 12.0% |
| Weighted-average number of shares of common stock | 12201765 | 5316154 | 1975347 |
| Weighted-average debt per share | $3.17 | $1.64 | $0.03 |

---

------

(1)Per share changes in net asset value are computed based on the actual number of shares outstanding during the time such activity occurred.

(2)Not annualized for periods less than one year. Total return based on net asset value equals the change in net asset value per share during the period plus declared dividends per share during the period, divided by the beginning net asset value per share at the beginning of the period.

(3)Annualized for periods less than one year except for incentive fees and other certain non-recurring expenses.

(4)Includes interest and other debt costs.

(5)Includes incentive fees and all Company expenses including interest and other debt costs.

------

**BlackRock Direct Lending Corp.**

**Notes to Financial Statements (Continued)**

**December 31, 2022** 

**10. Senior Securities**

Information about the Company's senior securities is shown in the following table as of the end of each of the last two fiscal years and the year ended December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Class and Year** | **Total Amount<br>Outstanding (1)** | **Asset<br>Coverage<br>Per Unit (2)** | **Involuntary<br>Liquidating<br>Preference<br>Per Unit (3)** | **Average<br>Market<br>Value Per<br>Unit (4)** |
| **Unsecured Notes** |  |  |  |  |
| As of December 31, 2022 | $110000 | $5642 |  | N/A |
| Fiscal Year 2021 | 110000 | 4904 |  | N/A |
| Fiscal Year 2020 | 110000 | 272472 |  | N/A |
| **Capital Call Facility** |  |  |  |  |
| As of December 31, 2022 | $37500000 | $5642 |  | N/A |
| Fiscal Year 2021 | 22000000 | 4928 |  | N/A |
| Fiscal Year 2020 |  |  |  | N/A |

---

------

(1)Total amount of each class of senior securities outstanding at the end of the period presented.

(2)The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness. The asset coverage ratio with respect to indebtedness is multiplied by $1,000 to determine the Asset Coverage Per Unit.

(3)The amount to which such class of senior security would be entitled upon the voluntary liquidation of the issuer in preference to any security junior to it. The "—" in this column indicates that the SEC expressly does not require this information to be disclosed for certain types of senior securities.

(4)The Company's senior securities are not registered for public trading.

------

**BlackRock Direct Lending Corp.**

**Schedule of Restricted Securities of Unaffiliated Issuers**

**December 31, 2022**

---

| | |
|:---|:---|
| **Investment** | **Acquisition<br>Date** |
| Elevate Brands Holdco, Inc., Warrants to Purchase Common Stock | 3/14/2022 |
| Elevate Brands Holdco, Inc., Warrants to Purchase Preferred Stock | 3/14/2022 |
| Grey Orange International Inc., Warrants to Purchase Common Stock | 5/6/2022 |
| MXP Prime Platform GmbH (SellerX) (Germany), Warrants to Purchase Preferred Series B Shares | 11/23/2021 |
| PerchHQ, LLC, Warrants to Purchase Units | 9/30/2022 |
| Razor Group GmbH (Germany), Warrants to Purchase Preferred Series A1 Shares | 4/28/2021 |
| Razor Group GmbH (Germany), Warrants to Purchase Preferred Series C Shares | 12/23/2022 |
| Worldremit Group Limited (United Kingdom), Warrants to Purchase Series D Stock | 2/11/2021 |
| Worldremit Group Limited (United Kingdom), Warrants to Purchase Series E Stock | 8/27/2021 |

---

------

**BlackRock Direct Lending Corp.**

**Schedule of Restricted Securities of Unaffiliated Issuers**

**December 31, 2021**

---

| | |
|:---|:---|
| **Investment** | **Acquisition<br>Date** |
| Razor Group GmbH (Germany), Warrants to Purchase Preferred Series A1 Shares | 4/28/2021 |
| SellerX Germany Gmbh & Co. Kg (Germany), Warrants to Purchase Preferred B Shares | 11/23/2021 |
| Worldremit Group Limited (United Kingdom), Warrants to Purchase Series D Stock | 2/11/2021 |
| Worldremit Group Limited (United Kingdom), Warrants to Purchase Series E Stock | 8/27/2021 |

---

------

**Item 9. Changes in Disagreements with Accountants on Accounting and Financial Disclosure**

None

**Item 9A. Controls and Procedures**

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

As of December 31, 2022 (the end of the period covered by this report), 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) of the 1934 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Management's Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2022. Internal control over financial reporting is a process designed by, or under the supervision of, our principal executive and principal financial officers, or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Management performed an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2022 based upon the criteria set forth in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our assessment, management determined that our internal control over financial reporting was effective as of December 31, 2022. Pursuant to rules established by the SEC, this annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the 1934 Act) during our most recently completed fiscal quarter, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Item 9B. Other Information**

On December 10, 2020, we entered into a non-exclusive, royalty-free license agreement (the "License Agreement") with BlackRock, Inc., the parent company of our Advisor, pursuant to which BlackRock, Inc. has agreed to grant us a non-exclusive, royalty-free license to use the name "BlackRock." The License Agreement has an initial term of one year and will automatically be renewed for successive one-year terms unless terminated in accordance with the terms of the License Agreement.

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not Applicable.

------

**PART II - Other Information**

**Item 10. Directors, Executive Officers and Corporate Governance**

The information required by this item is contained in the Registrant's definitive Proxy Statement for its 2023 Annual Stockholders Meeting to be filed with the Securities and Exchange Commission within 120 days after December 31, 2022 and is incorporated herein by reference.

**Item 11. Executive Compensation**

The information required by this item is contained in the Registrant's definitive Proxy Statement for its 2023 Annual Stockholders Meeting to be filed with the Securities and Exchange Commission within 120 days after December 31, 2022 and is incorporated herein by reference.

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters**

The information required by this item is contained in the Registrant's definitive Proxy Statement for its 2023 Annual Stockholders Meeting to be filed with the Securities and Exchange Commission within 120 days after December 31, 2022 and is incorporated herein by reference.

**Item 13. Certain Relationships and Related Transactions, and Director Independence**

The information required by this item is contained in the Registrant's definitive Proxy Statement for its 2023 Annual Stockholders Meeting to be filed with the Securities and Exchange Commission within 120 days after December 31, 2022 and is incorporated herein by reference.

**Item 14. Principal Accountant Fees and Services**

The information required by this item is contained in the Registrant's definitive Proxy Statement for its 2023 Annual Stockholders Meeting to be filed with the Securities and Exchange Commission within 120 days after December 31, 2022 and is incorporated herein by reference.

------

**Item 15. Exhibits and Financial Statement Schedules**

a.Documents Filed as Part of this Report

The following reports and financial statements are set forth in Item 8:

---

| | |
|:---|:---|
|  | **Page** |
| [<u>Report of Independent Registered Public Accounting Firm (PCAOB ID 34)</u>](#audit_opinion) | 82 |
| [<u>Statements of Assets and Liabilities as of December 31, 2022 and 2021</u>](#statements_assets_liabilities_) | 83 |
| [<u>Statements of Operations for the year ended December 31, 2022, 2021 and for the period from November 30, 2020 (Inception) to December 31, 2020</u>](#statements_operations_unaudited) | 84 |
| [<u>Statements of Changes in Net Assets for the year ended December 31, 2022, 2021 and for the period from November 30, 2020 (Inception) to December 31, 2020</u>](#statements_changes_in_net_assets_unaudit) | 85 |
| [<u>Statements of Cash Flows for the year ended December 31, 2022, 2021 and for the period from November 30, 2020 (Inception) to December 31, 2020</u>](#statements_cash_flows_unaudited) | 86 |
| [<u>Schedule of Investments as of December 31, 2022 and 2021</u>](#soi_2022) | 87 |
| [<u>Notes to Financial Statements</u>](#notes_to_financial_statements_unaudited) | 98 |
| [<u>Schedule of Restricted Securities of Unaffiliated Issuers as of December 31, 2022 and 2021</u>](#schedule_restricted_securities_unaffil_1) | 111 |

---

b.Exhibits

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC:

---

| | |
|:---|:---|
| **Number** | **Description** |
| [<u>3.1</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex3-1.htm) | [<u>Certificate of</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex3-1.htm)[<u>Incorporation</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex3-1.htm)[<u>(1)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex3-1.htm) |
| [<u>3.2</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex3-2.htm) | [<u>By-Laws</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex3-2.htm)[<u>(1)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex3-2.htm) |
| [<u>4.1</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex4-1.htm) | [<u>Form</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex4-1.htm)[<u>of</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex4-1.htm)[<u>Subscription</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex4-1.htm)[<u>Agreement</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex4-1.htm)[<u>(2)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex4-1.htm) |
| [<u>4.2</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121007675/brhc10021239_ex4-2.htm) | [<u>Description of Securities</u><u>(3)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121007675/brhc10021239_ex4-2.htm) |
| [<u>10.1</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-1.htm) | [<u>Investment</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-1.htm)[<u>Management</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-1.htm)[<u>Agreement</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-1.htm)[<u>(2)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-1.htm) |
| [<u>10.2</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-2.htm) | [<u>Administration</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-2.htm)[<u>Agreement</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-2.htm)[<u>(2)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-2.htm) |
| [<u>10.3</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-3.htm) | [<u>Custody</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-3.htm)[<u>Agreement</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-3.htm)[<u>(2)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-3.htm) |
| [<u>10.4</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-4.htm) | [<u>Loan</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-4.htm)[<u>Services</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-4.htm)[<u>Addendum</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-4.htm)[<u>to</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-4.htm)[<u>Custody</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-4.htm)[<u>Agreement</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-4.htm)[<u>(2)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-4.htm) |
| [<u>10.5</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex10-5.htm) | [<u>Form</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex10-5.htm)[<u>of</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex10-5.htm)[<u>Promissory</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex10-5.htm)[<u>Note</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex10-5.htm)[<u>(1)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex10-5.htm) |
| [<u>10.6</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-6.htm) | [<u>Organizational</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-6.htm)[<u>Cost</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-6.htm)[<u>Agreement</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-6.htm)[<u>(1)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-6.htm) |
| [<u>10.7</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-7.htm) | [<u>License</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-7.htm)[<u>Agreement</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-7.htm)[<u>(2)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-7.htm) |
| [<u>10.8</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121002056/brhc10019279_ex10-7.htm) | [<u>Revolving Credit Agreement, dated as of June 18, 2021, by and between BlackRock Direct Capital Corp., as the borrower, and Sumitomo Mitsui Banking Corporation, as the administrative agent, lead arranger and a lender</u><u>(4)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036121022019/brhc10026131_ex10-1.htm) |
| [<u>14.1</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex14-1.htm) | [<u>Code</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex14-1.htm)[<u>of</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex14-1.htm)[<u>Ethics</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex14-1.htm)[<u>of</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex14-1.htm)[<u>Registrant and</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex14-1.htm)[<u>the</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex14-1.htm)[<u>Manager</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex14-1.htm)[<u>(1)</u>](https://www.sec.gov/Archives/edgar/data/1834543/000114036120028053/brhc10017694_ex14-1.htm) |
| 31.1 | [<u>Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934</u><u>\*</u>](ck0001834543-ex31_1.htm) |
| 31.2 | [<u>Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934</u><u>\*</u>](ck0001834543-ex31_2.htm) |
| 32.1 | [<u>Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U. S. C. 1350)</u><u>\*</u>](ck0001834543-ex32_1.htm) |

---

------

\* Filed herewith.

(1)Incorporated by reference to the Company's Registration Statement on Form 10 (File No. 000-56231) filed on December 10, 2020 and incorporated herein by reference.

(2)Incorporated by reference to Amendment No. 1 to the Company's Registration Statement on Form 10 (File No. 000-56231) filed on January 25, 2021 and incorporated herein by reference.

(3)Previously filed with the Company's Form 10-K dated as of March 8, 2021 and incorporated herein by reference.

(4)Previously filed with the Company's Form 8-K dated as of June 23, 2021 and incorporated herein by reference.

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

**BlackRock Direct Lending Corp.**

---

| | |
|:---|:---|
| By: | /s/ Nik Singhal |
| Name: | Nik Singhal |
| Title: | Chief Executive Officer |

---

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

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Date | &nbsp;&nbsp;Signature | &nbsp;&nbsp;Title |
| &nbsp;&nbsp;March 1, 2023 | &nbsp;&nbsp;/s/ Eric J. Draut | &nbsp;&nbsp;Director |
|  | &nbsp;&nbsp;**Eric J. Draut** |  |
| &nbsp;&nbsp;March 1, 2023 | &nbsp;&nbsp;/s/ M. Freddie Reiss | &nbsp;&nbsp;Director |
|  | &nbsp;&nbsp;**M. Freddie Reiss** |  |
| &nbsp;&nbsp;March 1, 2023 | &nbsp;&nbsp;/s/ Karyn L. Williams | &nbsp;&nbsp;Director |
|  | &nbsp;&nbsp;**Karyn L. Williams** |  |
| &nbsp;&nbsp;March 1, 2023 | &nbsp;&nbsp;/s/ Nik Singhal | &nbsp;&nbsp;Director and Chief Executive Officer |
|  | &nbsp;&nbsp;**Nik Singhal** |  |
| &nbsp;&nbsp;March 1, 2023 | &nbsp;&nbsp;/s/ John Doyle | &nbsp;&nbsp;Director, President and Chief Operating Officer |
|  | &nbsp;&nbsp;**John Doyle**  |  |
| &nbsp;&nbsp;March 1, 2023 | &nbsp;&nbsp;/s/ Erik L. Cuellar | &nbsp;&nbsp;Chief Financial Officer (Principal Financial Officer) |
|  | &nbsp;&nbsp;**Erik L. Cuellar** |  |

---

------

## Ex-31

**Exhibit 31.1**

**Certification of Chief Executive Officer** 

**of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d-14(a)** 

I, Nik Singhal, certify that:

1. I have reviewed this Annual Report on Form 10-K of BlackRock Direct Lending Corp.;

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;(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;(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;(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

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

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

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

---

| | | |
|:---|:---|:---|
| Date: March 1, 2023 | By: | /s/ Nik Singhal |
|  |  | **Nik Singhal** |
|  |  | **Chief Executive Officer**<br>(Principal Executive Officer) |

---

------

## Ex-31

**Exhibit 31.2**

**Certification of Chief Financial Officer**

**of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d-14(a)**

I, Erik L. Cuellar, certify that:

1. I have reviewed this Annual Report on Form 10-K of BlackRock Direct Lending Corp.;

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;(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;(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;(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

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

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

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

---

| | | |
|:---|:---|:---|
| Date: March 1, 2023 | By: | /s/ Erik L. Cuellar |
|  |  | Erik L. Cuellar |
|  |  | **Chief Financial Officer**<br>**(Principal Financial Officer)** |

---

------

## Ex-32

**Exhibit 32.1**

**Certification of Chief Executive Officer and Chief Financial Officer**

**Pursuant to**

**18 U.S.C. Section 1350**

In connection with the Annual Report of Form 10-K of BlackRock Direct Lending Corp. (the "Company") for the year ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Nik Singhal, as Chief Executive Officer of the Company, and Erik L. Cuellar, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

&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; 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 result of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: March 1, 2023 | By: | /s/ Nik Singhal |
|  |  | **Nik Singhal** |
|  |  | **Chief Executive Officer**<br>(Principal Executive Officer) |

---

---

| | | |
|:---|:---|:---|
| Date: March 1, 2023 | By: | /s/ Erik L. Cuellar |
|  |  | **Erik L. Cuellar** |
|  |  | **Chief Financial Officer**<br>(Principal Financial Officer) |

---

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to BlackRock Direct Lending Corp. and will be retained by BlackRock Direct Lending Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

------