# EDGAR Filing Document

**Accession Number:** 0001786835
**File Stem:** 0001140361-26-012276
**Filing Date:** 2026-3
**Character Count:** 752579
**Document Hash:** f1f0411d6d4aa0229c0a397ad0402a38
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140361-26-012276.hdr.sgml**: 20260331

**ACCESSION NUMBER**: 0001140361-26-012276

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 87

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260331

**DATE AS OF CHANGE**: 20260331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Star Mountain Lower Middle-Market Capital Corp
- **CENTRAL INDEX KEY:** 0001786835

**ORGANIZATION NAME:**
- **EIN:** 842783833
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 814-01399
- **FILM NUMBER:** 26820375

**BUSINESS ADDRESS:**
- **STREET 1:** 140 EAST 45TH STREET, 37TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10017
- **BUSINESS PHONE:** 646.787.0203

**MAIL ADDRESS:**
- **STREET 1:** 140 EAST 45TH STREET, 37TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10017

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Star Mountain Credit Opportunities Fund, LP
- **DATE OF NAME CHANGE:** 20190829

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### The UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

### FORM 10-K

#### (Mark One)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

#### For the year ended December 31, 2025

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

#### Commission file number: 814-01399

## Star Mountain Lower Middle-Market Capital Corp.

#### (Exact Name of Registrant as Specified in its Charter)

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| | |
|:---|:---|
| **Delaware**<br>| **86-3924884**<br>|
| **(State or Other Jurisdiction of** <br> **Incorporation or Organization)** | **(I.R.S. Employer** <br> **Identification No.)** |

---

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| | |
|:---|:---|
| **140 E. 45th Street**<br>|  |
| **New York, NY** | **10017**<br>|
| **(Address of Principal Executive Office)** | **(Zip Code)** |

---

(212) 810-9044

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

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

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **Title of Each Class** | &nbsp;&nbsp; **Trading Symbol(s)** | &nbsp;&nbsp;&nbsp;&nbsp; **Name of Each Exchange on Which Registered** |
| &nbsp;&nbsp; **None** | &nbsp;&nbsp; **N/A** | &nbsp;&nbsp;&nbsp;&nbsp; **N/A** |

---

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 (or for such shorter period that the registrant was required to file such reports), and, (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

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

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

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☐ <br> Emerging growth company ☒

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

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act by the registered public accounting firm that prepared or issued its audit report. ☐

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. ☐

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). ☐

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

As of June 30, 2025, there was no established public market for the registrant's shares of common stock. As of March 31, 2026, the registrant had 10,262,712 shares of common stock, $0.001 par value, outstanding.

#### DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant's definitive proxy statement relating to the registrant's 2026 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission within 120 days following the end of the registrant's fiscal year, are incorporated by reference in Part III of this Annual Report on Form 10-K as indicated herein.

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**Table of Contents

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| | | |
|:---|:---|:---|
|  |  | Page |
| Part I |  |  |
| Item 1. | [Business](#Business) | 4 |
| Item 1A. | [Risk Factors](#RiskFactors) | 23 |
| Item 1B. | [Unresolved Staff Comments](#UnresolvedStaffComments) | 42 |
| Item 1C. | [Cybersecurity](#Item1C.) | 42 |
| Item 2. | [Properties](#Properties) | 43 |
| Item 3. | [Legal proceedings](#LegalProceedings) | 43 |
| Item 4. | [Mine Safety Disclosures](#MineSafetyDisclosures) | 43 |
| Part II |  |  |
| Item 5. | [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#MarketforRegistrantsCommo) | 44 |
| Item 6. | [\[Reserved\]](#Reserved) | 45 |
| Item 7. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ManagementsDiscussionandA) | 45 |
| Item 7A. | [Quantitative and Qualitative Disclosures About Market Risk](#QuantitativeandQualitativ) | 55 |
| Item 8. | [Consolidated Financial Statements and Supplementary Data](#ConsolidatedFinancialStat) | 56 |
| Item 9. | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ChangesinandDisagreements) | 56 |
| Item 9A. | [Controls and Procedures](#ControlsandProcedures) | 56 |
| Item 9B. | [Other Information](#OtherInformation) | 57 |
| Item 9C. | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#DisclosureRegardingForeig) | 57 |
| PART III |  |  |
| Item 10. | [Directors, Executive Officers and Corporate Governance](#DirectorsExecutiveOfficer) | 57 |
| Item 11. | [Executive Compensation](#ExecutiveCompensation) | 58 |
| Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#SecurityOwnershipofCertai) | 58 |
| Item 13. | [Certain Relationships and Related Transactions, and Director Independence](#CertainRelationshipsandRe) | 58 |
| Item 14. | [Principal Accountant Fees and Services](#PrincipalAccountantFeesan) | 58 |
| PART IV |  |  |
| Item 15. | [Exhibits and Financial Statement Schedules](#ExhibitsandFinancialState) | 58 |
| [Signatures](#SIGNATURES) | [Signatures](#SIGNATURES) | 60 |

---

**

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#### FORWARD-LOOKING STATEMENTS
Statements contained in this Annual Report on Form 10-K (including those relating to current and future market conditions and trends in respect thereof) that are not historical facts are based on current expectations, estimates, projections, opinions and/or beliefs of Star Mountain Lower Middle-Market Capital Corp. (the "Company"), Star Mountain Fund Management, LLC (the "Advisor") and Star Mountain Capital, LLC ("Star Mountain"). Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. Certain information contained in this Annual Report on Form 10-K constitutes "forward-looking statements," which can be identified by the use of forward-looking terminology such as "may," "will," "should," "seek," "expect," "anticipate," "project," "estimate," "intend," "continue," "target," or "believe" or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of the Company may differ materially from those reflected or contemplated in such forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond the Company's control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors the Company identifies in the section entitled "Item 1A. Risk Factors" and elsewhere in this Annual Report on Form 10-K and in the Company's filings with the Securities and Exchange Commission ("SEC").

Although the Company believes that the assumptions on which these forward-looking statements are based are reasonable, some of those assumptions are based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, the forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Annual Report on Form 10-K should not be regarded as a representation by us that the Company's plans and objectives will be achieved. These risks and uncertainties include those described or identified in the section entitled "Item 1A. Risk Factors" and elsewhere in this Annual Report on Form 10-K. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date of this Annual Report on Form 10-K. The Company does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 ("Exchange Act"), which preclude civil liability for certain forward-looking statements, do not apply to the forward-looking statements in this Annual Report on Form 10-K because the Company is an investment company.

The following factors are among those that may cause actual results to differ materially from the Company's forward-looking statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's future operating results;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inflation could adversely affect the business, results of operations and financial condition of the Company's portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's business prospects and the prospects of the Company's prospective portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of increased competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's contractual arrangements and relationships with third parties;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of the Company's prospective portfolio companies to achieve their objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the relative and absolute performance of the Advisor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of the Advisor and its affiliates to retain talented professionals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's expected financings and investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's ability to pay dividends or make distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the adequacy of the Company's cash resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with possible disruptions in the Company's operations or the economy generally due to war or terrorism or other disruptive geopolitical events domestically and/or globally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• geopolitical conflicts, including sanctions and market volatility related to such conflicts, may adversely impact the industries and portfolio companies in which the Company invests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of future acquisitions and divestitures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's regulatory structure as a business development company ("BDC") and tax status as a regulated investment company (a "RIC"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future changes in laws or regulations and conditions in the Company's operating areas.

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#### PART I

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| | |
|:---|:---|
| **Item 1.** | **Business** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *General Development of Business* 

Star Mountain Lower Middle-Market Capital Corp. (the "Company") is an externally managed, closed-end management investment company and has 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 objectives are to generate current income and capital appreciation.

Star Mountain Credit Opportunities Fund, LP (the "Private Fund") was formed as a Delaware limited partnership on August 7, 2019 to make investments in lower middle-market companies and commenced operations on September 16, 2019. On May 14, 2021, Star Mountain Credit Opportunities Fund, LP converted to Star Mountain Lower Middle-Market Capital Corp., via a filing with the State of Delaware of a Certificate of Conversion to a Corporation (the "BDC Conversion"). Following the BDC Conversion, the existing limited partners of the Private Fund became Stockholders of the Company by operation of law, and the value of an investor's limited partnership interest in the Private Fund was converted into a corresponding number of shares of common stock in the Company (the Common Stock). The historical cost basis of investments was carried forward during the BDC Conversion.

Based on analysis of the attributes of the Star Mountain Credit Opportunities Fund, LP predecessor entity versus the Star Mountain Lower Middle-Market Capital Corp. converted entity, it was determined that Star Mountain Lower Middle-Market Capital Corp. was the accounting survivor.

Star Mountain Lower Middle-Market Capital Holdings, LLC (the "Holding Company") was formed as a Delaware limited liability company on December 13, 2023 to hold certain of the Company's investments for tax purposes. The Holding Company commenced operations on December 13, 2023.

On July 29, 2025, the Company received an exemptive order from the Securities and Exchange Commission ("SEC") that permits the Company to offer multiple classes of shares of its Common Stock.

The Company's investment objectives are to generate current income and capital appreciation. The Company seeks to achieve its investment objectives by investing primarily in privately negotiated loans and equity investments to small and medium-sized businesses ("SMBs") generally with annual revenues greater than $15 million and earnings before interest, taxes, depreciation and amortization ("EBITDA") of less than $50 million. The Company is advised by Star Mountain Fund Management, LLC ("Star Mountain Fund Management", or in such capacity, the "Advisor"), a registered investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). In addition, for U.S. federal income tax purposes, the Company has elected to be treated and intends to continue to be treated as a RIC under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). As a BDC and a RIC, the Company is required to comply with certain regulatory requirements. See "*Item 1(b). Description of Business— Regulation as a Business Development Company" and "Item 1(b). Description of Business—Certain U.S. Federal Income Tax Consequences*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Description of Business* 

#### The Company
The Company has been established by the Advisor to provide investors with access to a diversified portfolio composed primarily of loans with equity upside investments in U.S. SMBs. The Company is externally managed by Star Mountain Fund Management, LLC. Star Mountain Fund Management, LLC also serves as the Company's administrator (in such capacity, the "Administrator") pursuant to an administration agreement (the "Administration Agreement"). The Administrator has entered into a sub-administration agreement with SS&C Technologies, Inc. (the "Sub-Administrator"), under which the Sub-Administrator provides various accounting and administrative services to the Company.

Following the BDC Conversion, the Company became a Delaware corporation structured as an externally managed, non-diversified closed-end management investment company. The Company has elected to be treated as a BDC under the 1940 Act. In addition, the Company has elected to be treated as a RIC for U.S. federal income tax purposes under Subchapter M of the Code. Investors whose subscriptions for Common Stock are accepted will be admitted as Stockholders in the Company. Following the BDC Conversion, all existing investors became Stockholders of the Company by operation of law, and the value of an investor's limited partnership interest in the Company was converted into a corresponding number of shares of Common Stock in the Company.

#### The Board of Directors
The Company's business and affairs are managed under the direction of the Company's Board of Directors (the "Board"). The Board consists of five members, three of whom are not "interested persons" of the Company, the Advisor or their respective affiliates as defined in Section 2(a)(19) of the 1940 Act. The Company refers to these individuals as the Company's "Independent Directors." The Independent Directors compose a majority of the Company's Board. Directors who are "interested persons," as defined in Section 2(a)(19) of the 1940 Act, of the Company or the Advisor are referred to herein as "Interested Directors." The Board elects the Company's officers, who serve at the discretion of the Board. The responsibilities of the Company's Board include quarterly determinations of fair value of the Company's assets, corporate governance activities, oversight of the Company's financing arrangements and oversight of the Company's investment activities. The Board has established an Audit Committee, Nominating and Corporate Governance Committee and an Independent Directors Committee. The scope of each committee's responsibilities is discussed in greater detail in *Item 10* below.

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#### The Advisor
Star Mountain Fund Management, LLC, a Delaware limited liability company, serves as the Advisor of the Company. The Advisor is registered as an investment adviser with the SEC pursuant to the Advisers Act. The Advisor provides certain investment advisory and management services to the Company pursuant to the Amended and Restated Investment Advisory Agreement (as defined below). Star Mountain Fund Management, LLC also serves as the Administrator pursuant to an Administration Agreement between the Company and the Administrator.

#### About Star Mountain
Star Mountain is a specialized investment firm focused on investment and financing activities in the SMB market segment where it believes it can generate attractive risk-adjusted returns. Star Mountain originates direct credit-focused investments in U.S. lower middle-market businesses across resilient sectors characterized by limited cyclicality and capital intensity.

Headquartered in New York, NY, Star Mountain's presence in over 20 cities supports local origination, execution and monitoring capabilities throughout the United States.

#### Investment Committee
The Advisor has formed and will maintain an investment committee (the "Investment Committee") comprised of not less than six members. Any two members of the Investment Committee acting together shall have the right to veto any investment. Other decisions of the Investment Committee shall require the vote of a simple majority of its members. Any five members of the Investment Committee shall constitute a quorum for purposes of any meeting thereof; provided, however, that the abstention of any member of the Investment Committee from any investment or other decision of the Investment Committee shall not affect the existence of such quorum.

#### Investment Objective and Strategy
The Company's investment objectives are to generate current income and capital appreciation. The Company seeks to achieve its investment objectives by investing primarily in privately negotiated loans and equity investments to SMBs generally with annual revenues greater than $15 million and earnings before interest, taxes, depreciation and amortization ("EBITDA") of less than $50 million. Generally, these businesses are owner-operated with an average 20+ year operating history. To accomplish this, the Company plans to (i) make direct investments in SMBs ("Direct Investments") and (ii) make investments in investment funds focused primarily on investing in SMBs ("Fund Investments") and, together with Direct Investments, ("Portfolio Investments"). The Company seeks to provide investors with access to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A diversified portfolio of credit investments with equity upside to SMBs, generally not owned by large private equity firms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current income distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital protection through defensive structures with affirmative, negative and financial maintenance covenants and active portfolio management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Targeted diversification of assets by vintage, industry and geography through direct originations and acquisitions of loan portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Generally low volatility and low correlation to public market indices.

The Company's investment strategy may be complemented by secondary fund investments and secondary loans, consisting of generally non-brokered purchases of limited partnership interests in lower middle-market credit-oriented funds and secondary loans. This complementary strategy may result in portfolio construction and diversification benefits.

The Company's investments are subject to a number of risks. See "*Item 1A. Risk Factors*." The Company utilizes leverage to help the Company meet its investment objectives. Any such leverage, if incurred, would be expected to increase the total capital available for investment by the Company.

#### The Private Offering
The Company has and expects to enter into separate Subscription Agreements with a number of Stockholders for a private offering (the "Private Offering", each a "Closing," the first Closing, the "Initial Closing," and each subsequent Closing, a "Subsequent Closing"). Each Stockholder will make a Capital Commitment to purchase shares of our Common Stock pursuant to the Subscription Agreement. Stockholders will be required to make Capital Contributions to purchase shares of the Company's Common Stock each time the Company delivers a drawdown notice (as further described below). For the year ended December 31, 2025, the Company held four Subsequent Closings, admitting 85 additional Stockholders including an upsize for existing Stockholders with a total Capital Commitment of $19,813,018. For the year ended December 31, 2024, the Company held four Subsequent Closings admitting 114 additional Stockholders including an upsize for existing Stockholders with a total Capital Commitment of $54,735,000.

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The Company will hold one or more Subsequent Closings at which it will accept Capital Commitments from Stockholders. During the term of the Company, Stockholders will make Capital Contributions pro rata in accordance with their respective Capital Commitments.

Stockholders will be required to fund drawdowns to purchase additional shares of the Company up to the amount of their respective Capital Commitments each time the Company delivers a drawdown notice, which will be at least eight Business Days (as defined below) prior to funding. All purchases will generally be made pro rata, in accordance with the remaining Capital Commitments of all Stockholders, at a per-share price equal to the net asset value per share of the Company's Common Stock, as determined by the Board.

New Stockholders admitted to the Company or existing Stockholders increasing their Capital Commitments at a particular Closing will be required to purchase shares of the Company with an aggregate purchase price necessary to ensure that all Stockholders in the Company have generally contributed the same percentage of their Capital Commitments to the Company immediately following such purchase (a "Catch-up Purchase") and each such Stockholder shall be issued a number of shares of the Company based on a per share purchase price determined by the Board. A Catch-up Purchase may be made in multiple installments as determined by the Advisor based on the Company's capital requirements. The per share purchase price shall be at least equal to the net asset value per share in accordance with the limitations of Section 23 of the 1940 Act. The Board may set the price per share above the net asset value per share based on a variety of factors, including without limitation, the total amount of the Company's organizational and other expenses that will have accrued following the Company's Initial Closing.

"Business Day" shall mean any day other than a Saturday, Sunday or a day when banks in the State of New York are authorized or required by law, regulation or executive order to remain closed.

#### Advisory Agreement; Administration Agreement
The Company's investment activities are managed by the Advisor, which is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring investments and monitoring investments and portfolio companies on an ongoing basis.

On June 14, 2023, the Company entered into an amended and restated investment advisory agreement with the Advisor (the "Amended and Restated Investment Advisory Agreement" or "Advisory Agreement"), replacing the original Investment Advisory Agreement pursuant to which, effective June 14, 2023 (the "Effective Date"), the base management fee was reduced from 1.75% to 1.25% per annum of the average of the Company's total gross assets (excluding cash or cash equivalents but including assets purchased with borrowed amounts) as of the end of each of the two most recently completed calendar quarters.

"Incentive Compensation" is payable by the Company to the Advisor and consists of two components that are independent of each other, with the result that one component may be payable even if the other is not. A portion of the incentive fee is based on a percentage of the Company's income (an "Income Incentive Fee") and a portion is based on a percentage of the Company's capital gains (the "Capital Gains Incentive Fee"), each as described below. Because of the structure of the Incentive Compensation, it is possible that the Company may pay an Income Incentive Fee in a quarter where it incurs a loss. For example, if the Company receives Pre-Incentive Fee Net Investment Income in excess of the hurdle rate (as defined below) for a quarter, the Company will pay the applicable Income Incentive Fee even if it has incurred a loss in that quarter due to realized and unrealized capital losses.

As of the Effective Date, the Income Incentive Fee was reduced from 20% to 17.5% of the Company's pre-incentive fee net investment income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Income Incentive Fee* 

<u>Incentive Fee on Pre-Incentive Fee Net Investment Income</u>

The first component of the Incentive Compensation, the Income Incentive Fee, is payable quarterly in arrears. The Income Incentive Fee will be determined by comparing the Company's Pre-Incentive Fee Net Investment Income (as defined herein) to a "Hurdle Amount." The Hurdle Amount is equal to the product of (i) the hurdle rate of 1.75% per quarter (7.00% annualized) and (ii) the Company's net assets at the end of the immediately preceding quarter.

The Company pays the Advisor an Income Incentive Fee quarterly in arrears with respect to the Company's Pre-Incentive Fee Net Investment Income in each calendar quarter as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no Income Incentive Fee in any calendar quarter in which the Company's Pre- Incentive Fee Net Investment Income does not exceed the Hurdle Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of that portion of the Company's Pre-Incentive Fee Net Investment Income, if any, that exceeds the Hurdle Amount but is less than or equal to a "Catch-up Amount." The Catch-up Amount is equal to the
 product of (i) 2.1212% per quarter (8.4848% annualized) and (ii) the Company's net assets at the end of the immediately preceding quarter. The Catch-up Amount is meant to provide the Advisor with approximately 17.5% of the Company's Pre-
 Incentive Fee Net Investment Income as if a hurdle rate did not apply; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 17.5% of the Company's Pre-Incentive Fee Net Investment Income, if any, that exceeds the Catch-up Amount. This reflects that once the Hurdle Amount and the Catch-up Amount are achieved, 17.5% of all
 Pre-Incentive Fee Net Investment Income thereafter is allocated to the Advisor.

Pre-Incentive Fee Net Investment Income shall mean interest income, dividend income and any other income accrued or earned by the Company during the calendar quarter, minus the Company's operating expenses for the quarter (including Management Fee, administrative expenses payable under the Administration Agreement or the Sub-Administration Agreement, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding Incentive Compensation). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with pay in kind interest and zero-coupon securities), accrued income that the Company has not yet received in cash. Pre- Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses and unrealized capital appreciation or depreciation.

The following is a graphical representation of the calculation of the income incentive fee:

#### Incentive Fee on

#### Pre-Incentive Fee Net Investment Income

#### (expressed as a percentage of average adjusted capital)
![graphic](image00002.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Capital Gains Incentive Fee* 

<u>Incentive Fee on Capital Gains</u>

The second component of the Incentive Compensation, the Capital Gains Incentive Fee, is payable at the end of each calendar year in arrears (or upon termination of the Amended and Restated Investment Advisory Agreement, as of the termination date). Under the Amended and Restated Investment Advisory Agreement, the Capital Gains Incentive Fee was reduced from 20.0% to 17.5% of cumulative realized capital gains as of the end of the fiscal year as of the Effective Date.

The amount payable equals:

17.5% of cumulative realized capital gains from inception through the end of such calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid incentive fee on capital gains as calculated in accordance with GAAP. It should be noted that, while Incentive Compensation excludes unrealized gains in the calculation of the Capital Gains Incentive Fee to be paid, as required by GAAP, the Company nevertheless accrues Capital Gains Incentive Fees on these unrealized gains.

*Examples of Quarterly Incentive Fee Calculation*

#### Example 1: Income Related Portion of Incentive Fee: (\*) Alternative 1—The Company is below the hurdle
*Assumptions*

Investment income (including interest, dividends, fees, etc.) = 2.00% Hurdle rate (1) = 1.75%

Management fee = 0.3125%

Other expenses (legal, accounting, custodian, transfer agent, etc.) = 0.1525%

Pre-incentive fee net investment income

(investment income–(management fee + other expenses)) = 1.535%, which does not exceed the hurdle rate Pre-incentive fee net investment income does not exceed hurdle rate, therefore there is no incentive fee.

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#### Alternative 2—The Company exceeds the hurdle
*Assumptions*

Investment income (including interest, dividends, fees, etc.) = 2.50% Hurdle rate (1) = 1.75%

Management fee = 0.3125%

Other expenses (legal, accounting, custodian, transfer agent, etc.) = 0.1525%

Pre-incentive fee net investment income

(investment income–(management fee + other expenses)) = 2.035%, which exceeds the hurdle rate

Pre-incentive fee net investment income exceeds the hurdle rate, therefore there is an incentive fee (calculated below).

Incentive fee:

Pre-incentive fee net investment income exceeds the hurdle rate but is less than the catchup limit of 2.1212%. Therefore, incentive fee is equal to 100% of the amount of the pre-incentive fee net investment income that exceeds the hurdle, calculated as follows:

100% x [2.035% (pre-incentive fee net investment income) -1.75% (hurdle)] = 0.285% of net assets paid in incentive fee.

#### Alternative 3—The Company exceeds the catch-up
*Assumptions*

Investment income (including interest, dividends, fees, etc.) = 3.0% Hurdle rate (1) = 1.75%

Management fee = 0.3125%

Other expenses (legal, accounting, custodian, transfer agent, etc.) = 0.1525%

Pre-incentive fee net investment income

(investment income–(management fee + other expenses)) = 2.535%, which exceeds the hurdle rate and the catch-up

Pre-incentive fee net investment income exceeds the hurdle rate, therefore there is an incentive fee (calculated below).

Incentive fee = 17.5% × pre-incentive fee net investment income

Incentive fee = 17.5% (incentive fee rate) x 2.535% (pre-incentive fee net investment income) = 0.4436% of net assets paid in incentive fee.

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| | |
|:---|:---|
| (\*) | The hypothetical amount of pre-incentive fee net investment income shown is based on a percentage of total net assets. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents 7.0% annualized hurdle rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The "catch-up" provision is intended to provide our Advisor with an incentive fee of approximately 17.5% on all of our pre- incentive fee net investment income when our net investment income exceeds 2.1212%
 in any calendar quarter.

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#### Example 2: Capital Gains Portion of Incentive Fee:
*Assumptions*

Year 1: $25.0 million investment made in Company A ("Investment A"), $35.0 million investment made in Company B ("Investment B") and $30.0 million investment made in Company C ("Investment C")

Year 2: Investment A sold for $35.0 million, fair value of Investment B determined to be $30.0 million and fair value of Investment C determined to be $32.0 million

Year 3: Fair value of Investment B determined to be $34.0 million and Investment C sold for $35.0 million

Year 4: Fair value of Investment B determined to be $45.0 million

Determination of incentive fee based on capital gains

The incentive fee based on capital gains, if any, would be:

Year 1: None

Year 2: $0.875 million

The portion of the incentive fee based on capital gains equals (A) 17.5% of our realized capital gains, if any, on a cumulative basis from inception through the end of the fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, minus (B) the aggregate amount of any previously paid capital gain incentive.

Therefore, using the assumptions above, the incentive fee based on capital gains equals (A) 17.5% × ($10.0 million-$5.0 million) minus (B) $0. Therefore, the incentive fee based on capital gains equals $0.875 million.

Year 3: $1.575 million, which is calculated as follows:

The incentive fee based on capital gains equals (A) 17.5% × ($15.0 million-$1.0 million) minus (B) $0.875 million. Therefore, the incentive fee based on capital gains equals $1.575 million.

Year 4: $0.175 million, which is calculated as follows:

The incentive fee based on capital gains equals (x) (A) 17.5% × ($15.0 million-$0.0 million) minus (B) $2.45 million. Therefore, the incentive fee based on capital gains equals $0.175 million.

In the event that the Advisory Agreement shall terminate as of a date that is not a fiscal year end, the termination date shall be treated as though it were a fiscal year end for purposes of calculating and paying a capital gains incentive fee.

#### Company Expenses
The Advisor and/or any affiliate of the Advisor that enters into an Administration Agreement with the Company are authorized to incur and pay, in the name and on behalf of the Company, all expenses which they deem necessary or advisable.

The Advisor is responsible for and will pay, or cause to be paid, all Overhead Expenses, except to the extent provided below. For this purpose, "Overhead Expenses" include overhead expenses of an ordinarily recurring nature such as rent, utilities, supplies, secretarial expenses, stationery, charges for furniture, fixtures and equipment, employee benefits including insurance, payroll taxes and compensation of all employees.

The Company reimburses the Advisor or its affiliates, as applicable, for all costs and expenses incurred in connection with administering the Company's business including out of pocket expenses (including travel, lodging and meals), the Company's allocable portion of the Advisor's or any affiliated Administrator's overhead expenses in performing its obligations under the Advisory Agreement or any Administration Agreement, as applicable, including rent and the allocable portion of the compensation paid by the Advisor or its affiliates, as applicable, to the Company's Chief Compliance Officer and Chief Financial Officer and their respective staffs (based on the percentage of time such individuals devote, on an estimated basis, to the business affairs of the Company), third-party software licensing, implementation, data management and recovery services and custom development costs.

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All other expenses are borne by the Company, including legal, accounting, tax, auditing, consulting and other professional expenses (including, without limitation, expenses relating to establishing reputation and public relations in connection with self-sourced lending or other financial transactions); the Management Fee and Incentive Compensation; professional liability insurance (including costs relating to directors' and officers' liability insurance and errors and omissions insurance); research and market data expenses; interest on indebtedness; custodial fees; bank service fees; investment-related fees and expenses (such as third-party sourcing fees, fees and expenses of legal and other professionals, due diligence expenses and travel, lodging and meal expenses) related to the analysis, purchase or sale of investments, whether or not the investments are consummated; expenses related to special purpose vehicles (each, an "SPV") (including, without limitation, Overhead Expenses related thereto); interest payable on debt, if any, incurred to finance the Company's investments; other expenses related to the purchase, monitoring, sale, settlement, custody or transmittal of Company assets (directly or through trading affiliates) as will be determined by the Advisor or an affiliate thereof, as applicable, in its sole discretion (including costs associated with systems and software used in connection with investment-related activities); costs of reporting to Stockholders and Stockholder meetings; administration fees and expenses charged by any third-party provider of administration services; entity-level taxes; expenses relating to the offer, transfer, sale and marketing of shares; filing fees and expenses; Federal and state registration fees and expenses; regulatory and compliance fees and expenses of the Company (including with respect to any registration activities of the Company); costs of winding up and liquidating the Company; costs associated with ensuring compliance with the applicable BDC and RIC requirements, including, but not limited to, costs incurred in connection with the organization of, and transfer of assets to, a private investment vehicle; expenses incurred in connection with a Stockholder that defaults in respect of a Capital Commitment; and other expenses associated with the operation of the Company and its investment activities, including extraordinary expenses such as litigation, workout and restructuring and indemnification expenses, if any. For the avoidance of doubt, the Company will also bear its allocable share (based on invested capital) of any of the expenses listed above incurred by any Subsidiary Investment Vehicle.

The Company is also responsible for the costs of the offering of common shares and other securities, including, but not limited to, all expenses incurred in connection with an IPO; costs and expenses relating to distributions paid to Stockholders; costs of effecting sales and repurchases of the Company's securities; allocated costs incurred by the Advisor or its affiliate in providing managerial assistance to those companies in which the Company has invested who request it; transfer agent fees; fees and expenses paid to the Company's independent directors (including expenses and costs related to meetings of the independent directors); costs of preparing and filing reports with the SEC and other Company reporting and compliance costs, including registration and listing fees; the Company's allocable portion of the fidelity bond; the costs of reports, proxy statements or other notices to Stockholders, including printing and mailing costs; the costs of any Stockholders' meetings and communications; expenses payable under any underwriting agreement, including associated fees, expenses and any indemnification obligations; and all other expenses incurred by the Company in connection with maintaining its status as a BDC. In addition, the Company may make investments in investment funds focused primarily on investing in SMBs. As a result, the Company (and the Stockholders, indirectly through the Company) bear the Company's proportionate share of the fees and expenses paid by the shareholders of such investment fund.

Generally, expenses incurred directly in connection with a particular investment (or proposed investment) of the Company and other Star Mountain accounts in which Star Mountain conducts substantial investment and other activities in their own accounts and the accounts of other clients (the "Star Mountain Accounts") will be allocated among the Company and other Star Mountain Accounts pro rata based upon capital invested (or proposed to be invested) in such investment; provided that expenses specifically attributable to the Company or any other Star Mountain Account may be allocated to the Company or any such other Star Mountain Account, as applicable. The Advisor will allocate other expenses among the Company and other Star Mountain Accounts in a fair and equitable manner taking into account such factors as it deems appropriate.

Notwithstanding the foregoing, in light of the Company's investment mandate, which may include investments in small loans, niche credits and other similar securities, it may not be practical to specifically allocate certain investment-related expenses to the particular loans to which they relate. The Advisor, in its absolute and sole discretion, may instead allocate such expenses (along with expenses that relate to transactions that are not consummated) pro rata across one or more investments.

#### Liquidity Events
The Board may, in its sole discretion, determine to cause the Company to conduct a Liquidity Event (as defined below), including an IPO. The decision will take into consideration factors such as prevailing market conditions at the time and the Company's portfolio composition. The ability of the Company to commence and consummate a Liquidity Event is not assured, and will depend on a variety of factors, including the size and composition of the Company's portfolio and prevailing market conditions at the time.

A "Liquidity Event" includes: (1) an IPO or (2) a Sale Transaction. A "Sale Transaction" means (a) the sale of all or substantially all of the Company's assets to, or other liquidity event with, another entity or (b) a transaction or series of transactions, including by way of merger, consolidation, recapitalization, reorganization, or sale of stock in each case for consideration of either cash and/or publicly listed securities of the acquirer.

Until such time as the Board determines to cause the Company to conduct a Liquidity Event, the Company will remain a privately offered BDC and, in its commercially reasonable judgment, will conduct quarterly repurchases of its shares of Common Stock. See "*Item 1(b). Description of Business—Discretionary Repurchase of Shares.*"

Each Stockholder will be required to agree to cooperate with the Company and take all actions, execute all documents and provide all consents as may be reasonably necessary or appropriate to consummate an IPO, it being understood that the Company may, without obtaining the consent of any Stockholders, make modifications to the Company's constitutive documents, capital structure and governance arrangements so long as, in the reasonable opinion of the Board, (x) the economic interests of the Stockholders are not materially diminished or materially impaired, (y) such modifications are consistent with the requirements applicable to BDCs under the 1940 Act and (z) such modifications are not inconsistent with the provisions set forth in the Company's Registration Statement on Form 10.

Upon completion of an IPO, Stockholders admitted to the Company prior to the IPO may also be required to enter into a lock-up agreement with the underwriters of the IPO for a period not to exceed 180 days (or such longer period as may be required or determined to be advisable by the underwriters of the IPO based on prevailing market conditions and practice at the time).

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#### Distributions
The Company generally intends to make quarterly distributions to its Stockholders out of assets legally available for distribution. Quarterly distributions, if any, will be determined by the Board.

All current income and realization proceeds will be retained by the Company and be available for re-investment (net of applicable withholding tax). Distributions will be made to Stockholders at such times and in such amounts as determined by the Company's Board. In addition, the Company has adopted a dividend reinvestment program ("DRP") and each Stockholder will receive dividends in the form of additional shares of the Company's Common Stock unless they notify the Company in writing at least 20 Business Days prior to the distribution date fixed by the Board for such dividend that they instead desire to receive cash. If such notice is received by the Company less than 20 Business Days prior to the relevant distribution date, then that dividend will be paid in the form of shares of Common Stock and any subsequent dividends will be paid in cash. If a Stockholder elects to receive dividends in the form of shares, dividend proceeds that otherwise would have been distributed in cash will be retained by the Company for re-investment. Stockholders who elect to receive dividends and other distributions in the form of shares of Common Stock generally are subject to the same U.S. federal tax consequences as Stockholders who elect to receive their distributions in cash; however, such reinvesting investors will not receive cash with which to pay any applicable taxes on re-invested dividends.

#### Defaults
Any Stockholder failing to timely make a Capital Contribution to the Company when due shall be subject to interest on the defaulted amount as well as the potential imposition of various additional default penalties in the sole discretion of the Company, which may include, among other things, the withholding of distributions, the forced sale of its interest in the Company, the forfeiture of voting and approval rights, the termination of such Stockholder's right to make additional Capital Contributions and/or the automatic transfer of 25% of the shares of the Company then held by such Stockholder to the other Stockholders, pro rata in accordance with their respective Capital Commitments.

The Company will have the right to cover shortfalls arising from the default of a Stockholder in any manner the Company deems appropriate, including by drawing down additional capital from non-defaulting Stockholders; provided that the amount of any shortfall funded by a non-defaulting Stockholder in connection with any investment may not exceed 150% of such non-defaulting Stockholder's total Capital Contributions in respect of such investment in the absence of any such shortfall.

#### Feeder Funds
Star Mountain Lower Middle-Market Capital (Offshore), Ltd. (the "Feeder Fund") was formed in the Cayman Islands on June 28, 2021 and operates as a feeder fund for the purpose of investing all its investable assets in the Company. The Feeder Fund made its initial investment in the Company on August 17, 2021; the Feeder Fund will continue until the termination or expiration of the term of the Company.

The Advisor may form more funds ("Feeder Funds") that will invest in the Company if, in the judgment of the Advisor, the use of such vehicles would allow the Company to accommodate tax, legal, or similar concerns of the Company, of the Advisor or of the investors in the Feeder Funds. Additional Feeder Funds will pass through the vote to its Feeder Fund investors on any proposal requiring the approval of the Company's Stockholders.

#### Subsidiary Investment Vehicles
The Advisor may cause the Company to participate in one or more Portfolio Investments through subsidiary investment vehicles (each, a "Subsidiary Investment Vehicle"). The Advisor may cause the Company to initially make one or more investments directly and subsequently transfer such investments to one or more Subsidiary Investment Vehicles.

#### Affiliated SBIC
The Advisor may cause one or more Alternative Investment Vehicles or Subsidiary Investment Vehicles to seek a license from the SBA to operate as a small business investment company (an "Affiliated SBIC").

At any time following the BDC Conversion, the Company (either directly, or indirectly through a Subsidiary) may apply to the SBA for a license to operate as an SBIC (an "SBIC Subsidiary"). As a licensed SBIC, the Company will have access to financing originated by SBA. The financing available will be driven by the Company's business model, but generally cannot exceed an amount that is equal to two times the amount of the Capital Commitments to any SBIC Subsidiary.

#### Limited Exclusion Right; Withdrawal
The Company will have the right to exclude any Stockholder from purchasing shares of the Company in connection with any drawdown if (x) in the reasonable opinion of the Company, there is a substantial likelihood that the Stockholder's purchase of shares of the Company at such time would (i) result in a violation of, or noncompliance with, any law or regulation applicable to the Company, the Advisor or any other Stockholder or (ii) create an undue economic, compliance or other burden due to regulatory, tax, legal or other similar reasons, or (y) such Stockholder has become subject to a final determination in a civil proceeding that could have an adverse effect on the Company, or has been convicted in, or become subject to, a criminal proceeding or investigation.

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#### Involuntary Repurchases
In addition, if the Advisor reasonably concludes that there is a substantial likelihood that a Stockholder's continued participation in the Company would result in a violation of or non-compliance with any law or regulation to which the Company is or would be subject or would otherwise place an undue economic, compliance or other burden on the Company, the Advisor may, in its sole discretion, purchase for the benefit of the Company or the Stockholders, or cause the Company to purchase, some or all of a Stockholder's shares at any time at a price equal to the net asset value of such Stockholder's shares as determined by the Board. Any such involuntary repurchase will be made pursuant to Rule 23c-2 under the 1940 Act.

#### Valuation
Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value, subject at all times to the oversight and approval of the Company's Board. Such determination of fair values are based on, among other considerations, the input of the Advisor, the Company's Audit Committee and independent third party firm(s) engaged at the direction of the Board, and may involve subjective judgments and estimates. With respect to unquoted securities, the Advisor, together with independent valuation advisors, and subject at all times to the oversight and approval of the Company's Board, values each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors. The Company retains one or more independent providers of financial advisory services to assist the Advisor and the Board by performing certain third-party valuation services. The Company may appoint additional or different third-party valuation firms in the future.

When an external event such as a purchase transaction, public offering or subsequent equity sale occurs with respect to a fair-valued portfolio company or comparable company, the Company's Board will use the pricing indicated by the external event to corroborate and/or assist the Company in the valuation of such portfolio company. Because there are not readily available market quotations for many of the investments in its portfolio, the Company values many of its investments at fair value as determined in good faith by the Board using a documented valuation policy and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company's investments may differ significantly from the values that would have been used had readily available market quotations existed for such investments, and the differences could be material.

On a quarterly basis, with respect to investments for which market quotations are not readily available, the Advisor will undertake a multi-step valuation process each quarter, as described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities for which no such market prices are available or reliable will be preliminarily valued at such value as the Advisor may reasonably determine, which may include third-party valuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Audit Committee of the Board will then review these preliminary valuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At least once annually, the valuation for each investment that constitutes a material portion of the Company's portfolio and that does not have a readily available market quotation will be reviewed by an
 independent valuation firm; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board will then discuss valuations and determine the fair value of each investment in the Company's portfolio in good faith, based on the input of the Advisor, the respective independent valuation firms
 and the Audit Committee.

All values assigned to securities and other assets by the Board will be binding on all Company Stockholders. When pricing of the Company's shares is necessary outside of the normal quarterly process, the Advisor among other things, reviews whether, to its knowledge, significant events have occurred since the last quarterly valuation which might affect the fair value of any of the Company's portfolio securities.

#### Discretionary Repurchase of Shares
*No Right of Redemption*

No Stockholder or other person holding shares acquired from a Stockholder has the right to require the Company to repurchase any shares. No public market for the shares exists, and none is expected to develop in the future. Consequently, Stockholders may not be able to liquidate their investment other than as a result of repurchases of shares by the Company, as described below.

*Repurchases of Shares*

Until such time as the Board determines to cause the Company to conduct a Liquidity Event and prior to an IPO, the Company will remain a privately offered BDC and, in the Advisor's commercially reasonable judgment and subject to the Board's discretion, will conduct quarterly repurchases of its shares of Common Stock pursuant to written tenders by Stockholders. At the discretion of the Board, the Company commenced a share repurchase program in which the Advisor will, in its commercially reasonable judgment subject to market conditions, cause the Company to offer to repurchase shares from Stockholders on a quarterly basis in an amount not to exceed 2.5% of the Company's net asset value. Each repurchase offer will generally commence prior to the applicable quarter end repurchase date or as disclosed in the Company's tender offer. With respect to any such repurchase offer, Stockholders tendering shares must do so by a date specified in the notice describing the terms of the repurchase offer. Notwithstanding the foregoing, pursuant to the terms of any credit facility the Company enters into, the Company may be prohibited from repurchasing its shares of common stock from its investors during a quarter if, in the prior quarter, repurchase requests from the Company's investors exceed 10% of the Company's total Capital Commitments. Stockholders who make Capital Commitments to purchase shares of the Company's common stock on or after February 20, 2026 are advised that if they tender shares of the Company's common stock in a tender offer with a valuation date that is within the 12-month period following the initial issue date of their tendered shares, the Company may repurchase such shares subject to an "early repurchase deduction" of 2% of the aggregate net asset value of the shares repurchased (an "Early Repurchase Deduction"). The Early Repurchase Deduction will be retained by the Company for the benefit of remaining holders of the Company's common stock.

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There is no minimum portion of a Stockholder's shares which must be repurchased in any repurchase offer. The Company has no obligation to repurchase shares at any time; any such repurchases will only be made at such times, in such amounts and on such terms as may be determined by the Board, in its sole discretion. In determining whether the Company should offer to repurchase shares, the Board will consider the timing of such an offer, as well as a variety of operational, business and economic factors. In determining whether to accept a recommendation to conduct a repurchase offer at any such time, the Board will consider the following factors, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether any Stockholders have requested to tender shares to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the liquidity of the Company's assets (including fees and costs associated with redeeming or otherwise withdrawing from investment funds);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the investment plans and working capital and reserve requirements of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the relative economies of scale of the tenders with respect to the size of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the history of the Company in repurchasing shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of information as to the value of the Company's shares in investment funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the existing conditions of the securities markets and the economy generally, as well as political, national or international developments or current affairs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any anticipated tax consequences to the Company of any proposed repurchases of shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the recommendations of the Advisor.

The Company will repurchase shares from Stockholders pursuant to written tenders on terms and conditions that the Board determines to be fair to the Company and to all Stockholders. When the Board determines that the Company will repurchase shares, notice will be provided to Stockholders describing the terms of the offer, containing information Stockholders should consider in deciding whether to participate in the repurchase opportunity and containing information on how to participate. Stockholders deciding whether to tender their shares during the period that a repurchase offer is open may obtain the Company's net asset value per share by contacting the Advisor during the period. If a repurchase offer is oversubscribed by Stockholders who tender shares (including the Advisor or any of its affiliates), the Company may repurchase a pro rata portion by value of the shares tendered by each Stockholder, extend the repurchase offer, or take any other action with respect to the repurchase offer permitted by applicable law.

Repurchases of shares from Stockholders by the Company will be paid in cash. Repurchases will be effective after receipt and acceptance by the Company of eligible written tenders of shares from Stockholders by the applicable repurchase offer deadline. The Company does not impose any charges in connection with repurchases of shares.

Shares will be repurchased by the Company after the Management Fee has been deducted from the Company's assets as of the end of the month in which the repurchase occurs — *i.e.*, the accrued Management Fee for the quarter in which Company shares are to be repurchased is deducted prior to effecting the relevant repurchase of Company shares.

Under certain circumstances, the Company may also repurchase shares of a Stockholder without consent or other action by the Stockholder or other person if the Company determines that doing so would be in the best interests of the Company for the Company to repurchase the shares. Any such involuntary repurchase will be made pursuant to Rule 23c-2 under the 1940 Act in a manner that will not discriminate unfairly against any holder of the shares.

Stockholders who require minimum annual distributions from a retirement account through which they hold shares should consider the Company's schedule for repurchase offers and submit repurchase requests accordingly.

Any share repurchases of the Company will be effected in accordance with applicable law.

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#### Co-Investment Exemptive Relief
On December 17, 2025, Star Mountain received an updated form of co-investment exemptive relief from the SEC to allow certain managed funds and investment vehicles, each of whose investment adviser is Star Mountain Fund Management, LLC or an investment adviser controlling, controlled by or under common control with Star Mountain proprietary accounts, to participate in negotiated co-investment transactions where doing so is consistent with regulatory requirements and other pertinent factors, and pursuant to the conditions of the exemptive relief (the "Co-Investment Order"). The Co-Investment Order, which supersedes the prior co-investment order issued to Star Mountain on March 23, 2021, is a new form of co-investment exemptive relief that adopts a more flexible requirement that allocations be "fair and equitable" to us and that Star Mountain considers the interests of us and other affiliated 1940 Act-regulated funds that rely on the Co-Investment Order in allocations and which minimizes certain board approval requirements as compared to the prior form of co-investment exemptive relief.

#### Multi-Class Exemptive Relief
On July 29, 2025, the SEC issued an order (the "Multi-Class Order") granting the Company's application for exemptive relief from sections 18(a)(2), 18(c), 18(i) and 61(a) under the 1940 Act. Under the terms of the Multi-Class Order, the Company is permitted to offer multiple classes of its Common Shares with varying sales loads and asset-based distribution and/or service fees.

#### Regulation as a Business Development Company
A BDC must be organized in the United States for the purpose of investing in or lending to primarily private companies and making significant managerial assistance available to them. As with other companies regulated by the 1940 Act, a BDC must adhere to certain substantive regulatory requirements.

*SEC Reporting*

The Company is subject to the reporting requirements of the Exchange Act, which includes annual and periodic reporting requirements.

*Governance*

The Company is a corporation and, as such, is governed by a board of directors. The board of directors is constituted as a classified board, subject to removal only for cause by holders of a majority of the Company's outstanding voting securities. The 1940 Act requires that a majority of the Company's 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 its business so as to cease to be, or to withdraw its election as, a BDC unless approved by the holders of a majority of the outstanding voting securities.

*1940 Act Ownership Restrictions*

The Company does not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Under these limits, except for registered money market funds, a BDC generally cannot acquire more than 3% of the voting stock of any investment company, invest more than 5% of the value of its total assets in the securities of one investment company or invest more than 10% of the value of its total assets in the securities of investment companies in the aggregate. Subject to certain exemptive rules, including Rule 12d1-4, the Company may, subject to certain conditions, invest in other Investment Companies in excess of such thresholds.

*Qualifying Assets*

The Company may invest up to 100% of its assets in securities acquired directly from, and/or loans originated directly to, issuers in privately-negotiated transactions.

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 and after giving effect to such acquisition, qualifying assets represent at least 70% of the BDC'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;&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" (as defined
 in the 1940 Act), or from any person who is, or has been during the 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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is not an investment company (other than a small business investment company wholly owned by the Company) or a company that would be an investment company but for certain exclusions under the 1940 Act; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• satisfies any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• has an equity capitalization of less than $250 million or does not have any class of securities listed on a national securities exchange;

&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 controlling influence over the management or policies of the eligible portfolio company, and, as a result
 thereof, the BDC has an affiliated person who is a director of the eligible portfolio company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is a small and solvent company having total assets of not more than $4 million and capital and surplus of not less than $2 million.

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

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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;&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 options, warrants or rights relating to such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash, cash equivalents, "U.S. Government securities" (as defined in the 1940 Act) or high-quality debt securities maturing in one year or less from the time of investment.

*Limitations on Leverage*

As a BDC, the Company generally must have at least 150% asset coverage for its debt after incurring any new indebtedness, meaning that for every $100 of net assets the Company holds, the Company may raise $200 from borrowing and issuing senior securities. If the Company is licensed as an SBIC, the limitations on leverage applicable to BDCs under the 1940 Act may be exceeded.

*Managerial Assistance to Portfolio Companies*

A BDC 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 (other than small and solvent companies described above) 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. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its 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.

*Temporary Investments*

As a BDC, pending investment in other types of "qualifying assets," as described above, the Company's investments may consist of cash, cash equivalents, U.S. Government securities or high-quality debt securities maturing in one year or less from the time of investment, which are referred to, collectively, as temporary investments, such that at least 70% of the Company's assets are qualifying assets. Typically, the Company will invest in highly rated commercial paper, U.S. Government agency notes, U.S. Treasury bills or in repurchase agreements relating to such securities that are fully collateralized by cash or securities issued by the U.S. Government or its agencies. A repurchase agreement involves the purchase by a Stockholder, such as the Company, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price that is greater than the purchase price by an amount that reflects an agreed-upon interest rate. There is no percentage restriction on the proportion of the Company's assets that may be invested in such repurchase agreements. However, certain diversification tests in order to qualify as a RIC for U.S. federal income tax purposes will typically require the Company to limit the amount it invests with any one counterparty.

*Senior Securities*

As a corporation, the Company will be permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to its Common Stock if the Company's asset coverage, as defined in the 1940 Act, is at least equal to 150% for indebtedness and 150% for preferred equity immediately after each such issuance. On May 14, 2021, Stockholders of the Company approved the adoption of the 150% threshold pursuant to Section 61(a)(2) of the Investment Company Act and such election became effective that same day. As of December 31, 2025 and December 31, 2024, the Company's asset coverage for total borrowings and other senior securities was 294% and 209%, respectively. In addition, while any preferred stock or publicly traded debt securities are outstanding, the Company may be prohibited from making distributions to its Stockholders or the repurchasing of such securities or shares unless it meets the applicable asset coverage ratios at the time of the distribution or repurchase. The Company may also borrow amounts up to 5% of the value of its total assets for temporary or emergency purposes without regard to asset coverage. For a discussion of the risks associated with leverage, see, *e.g.* "*Item 1A. Risk Factors – Borrowing Risk.*" The 1940 Act imposes limitations on a BDC's issuance of preferred shares, which are considered "senior securities" subject to the 150% asset coverage requirement described above. In addition, (i) preferred shares must have the same voting rights as the common Stockholders (one share one vote); and (ii) preferred Stockholders must have the right, as a class, to appoint directors to the board of directors.

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*Code of Ethics*

As a BDC, the Company and the Advisor have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act and Rule 204A-1 under the Advisers Act, respectively, that establishes procedures for personal investments and restricts certain personal securities transactions. Personnel subject to each 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.

We will provide any person, without charge, upon written request to the Company, a copy of our code of ethics. To receive a copy, please provide a written request to: Star Mountain Lower Middle-Market Capital Corp., 140 E. 45th Street, New York, NY 10017.

*Anti-Takeover Measures*

State corporate law as well as the Company's certificate of incorporation and bylaws include provisions that could have the effect of limiting the ability of other entities or persons to acquire control of the Company by means of a tender offer, proxy contest or otherwise or to change the composition of the Company's Board. These provisions discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of the Company to negotiate first with the board of directors. These measures, however, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of the Company's Stockholders and could have the effect of depriving Stockholders of an opportunity to sell their shares at a premium over prevailing market prices. Such attempts could have the effect of increasing the Company's expenses and disrupting its normal operation. Until the consummation of an IPO, the Company will continue its investment activities and operations as a privately held BDC whose shares are subject to transfer restrictions. Accordingly, these anti-takeover measures will have limited practical effect until such time as the Company consummates an IPO.

*Compliance Policies and Procedures and Other Considerations*

As a BDC, the Company will not generally be able to issue and sell its Common Stock at a price below net asset value per share. It may, however, issue and sell its Common Stock, at a price below the current net asset value of the Common Stock, or issue and sell warrants, options or rights to acquire such Common Stock, at a price below the current net asset value of the Common Stock if the Company's Board determines that such sale is in the Company's best interest and in the best interests of its Stockholders, and its Stockholders have approved the policy and practice of making such sales within the preceding 12 months. In any such case, the price at which the securities are to be issued and sold may not be less than a price that, in the determination of the board of directors, closely approximates the market value of such securities.

As a BDC, the Company may also be prohibited under the 1940 Act from knowingly participating in certain transactions with its affiliates, including the Company's officers, directors, investment adviser, principal underwriters and certain of their affiliates, without the prior approval of the members of board of directors who are not interested persons and, in some cases, prior approval by the SEC through an exemptive order (other than pursuant to current regulatory guidance). The Company and the Advisor have received the Co-Investment Order that permits the Company to co-invest with Star Mountain Accounts and other affiliates of the Advisor. Subject to the terms and conditions specified in the exemptive order, the Company will be able to co-invest alongside Star Mountain Accounts or affiliates of the Advisor.

As a BDC, the Company expects to be periodically examined by the SEC for compliance with the 1940 Act.

As a BDC, 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.

The Advisor has relief from registration with the CFTC as a CPO with respect to the Company, and the Advisor is exempt from registration with the CFTC as a CTA with respect to the Company and will therefore not be required to provide Stockholders with certified annual reports and other disclosure documents that satisfy the requirements of CFTC rules applicable to registered CPOs and CTAs.

The Company and the Advisor have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws. As a BDC, the Company is required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation and designate a chief compliance officer to be responsible for administering the policies and procedures.

*Sarbanes-Oxley Act of 2002*

The Sarbanes-Oxley Act imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect the Company. For example:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pursuant to Rule 13a-14 of the Exchange Act, the President and Chief Financial Officer must certify the accuracy of the consolidated 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 the Company's disclosure controls and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pursuant to Rule 13a-15 of the Exchange Act, the Company's management must prepare an annual report regarding its assessment of the Company's internal control over financial reporting and (once the Company
 ceases to be an emerging growth company under the JOBS Act or, if later, for the year following the Company's first annual report required to be filed with the SEC) must obtain an audit of the effectiveness of internal control over
 financial reporting performed by the Company's independent registered public accounting firm; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the Exchange Act, the Company's periodic reports must disclose whether there were significant changes in the Company's internal controls over
 financial reporting 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 the Company's current policies and procedures to determine whether the Company will comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. The Company will continue to monitor the Company's 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.

*Proxy Voting Policies and Procedures*

The Company delegates proxy voting responsibility to the Advisor. As a fiduciary, the Advisor has a duty to monitor corporate events and to vote proxies, as well as a duty to cast votes in the best interest of the Company and not to subrogate Company interests to its own interests. To meet its fiduciary obligations, the Advisor seeks to ensure that it votes proxies in the best interest of the Company, and addresses how the Advisor will resolve any conflict of interest that may arise when voting proxies. The Advisor's proxy voting policy attempts to generalize a complex subject and the Advisor may, from time to time, determine that it is in the best interests of the Company to depart from specific policies described therein.

The Advisor is responsible for processing all proxy notifications received by the Advisor. All proxy voting requests received are forwarded to the appropriate contact person at the Advisor that is responsible for monitoring the issuer. The appropriate contact person at the Advisor communicates the proxy voting decision to the Advisor. The Advisor shall keep a record of its proxy voting policies and procedures, proxy statements received and votes cast, in accordance with its record keeping policies. The trade operations department is responsible for maintaining records with respect to proxy voting.

*Reporting Obligations*

The Company is required to comply with periodic reporting requirements under the Exchange Act, and, makes available to Stockholders annual reports on Form 10-K containing audited consolidated financial statements, quarterly reports on Form 10-Q, and such other reports as the Company determines to be appropriate or as may be required by law. The Company is filing this Form 10-K with the SEC and is required to comply with all reporting, proxy solicitation and other applicable requirements under the Exchange Act.

Stockholder reports and other information about the Company are available on the EDGAR Database on the SEC's Internet site at <u>http://www.sec.gov</u>.

#### Certain U.S. Federal Income Tax Consequences
The following discussion is a brief summary of some of the U.S. federal income tax considerations relevant to an investment in the Company as a Stockholder, including U.S. federal income tax considerations relevant to a BDC. The discussion is based upon the Code, the regulations promulgated thereunder, published rulings of the IRS and court decisions, all as in effect on the date of filing of this Form 10-K. All of the above authorities are subject to change (possibly retroactively) by legislative or administrative action.

For purposes of this discussion, a "U.S. Holder" is a Stockholder, that is, for U.S. federal income tax purposes: (a) an individual who is a citizen or resident of the United States; (b) a corporation created or organized in or under the laws of the United States, any state thereof or the District of Columbia; (c) an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or (d) a trust if a court within the United States can exercise primary supervision over its administration and certain other conditions are met. A "Non-U.S. Holder" is a Stockholder who is not a U.S. Holder.

THIS SUMMARY DOES NOT DISCUSS ALL OF THE U.S. FEDERAL INCOME TAX CONSIDERATIONS THAT MAY BE RELEVANT TO A PARTICULAR INVESTOR OR TO INVESTORS SUBJECT TO SPECIAL TREATMENT AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. ACCORDINGLY, PROSPECTIVE INVESTORS SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE SPECIFIC FEDERAL, STATE, LOCAL, ESTATE AND FOREIGN TAX CONSEQUENCES OF INVESTING IN THE COMPANY.

*Taxation of RIC Operations Generally*. The Company has elected and intends to qualify annually as a RIC for U.S. federal income tax purposes. As a RIC, the Company will be able to deduct qualifying distributions to its Stockholders, so that it is generally subject to U.S. federal income taxation only in respect of earnings that it retains and does not distribute. In addition, certain distributions made to the Company's Stockholders may be eligible for look-through tax treatment determined by reference to the earnings from which the distribution is made.

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In order to qualify as a RIC, the Company must, among other things,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at all times during each taxable year maintain its election under the 1940 Act to be treated as a BDC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) derive in each taxable year at least 90% of its gross income from dividends, interest, gains from the sale or other disposition of stock or securities and other specified categories of investment income;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) diversify its holdings so that, subject to certain exceptions and cure periods, at the end of each quarter of its taxable year,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at least 50% of the value of its total assets is represented by cash and cash items, U.S. government securities, securities of other RICs and "other securities," provided that such "other securities" shall
 not include any amount of any one issuer, if the Company's holdings of such issuer are greater in value than 5% of its total assets or greater than 10% of the outstanding voting securities of such issuer, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no more than 25% of the value of its assets may be invested in the securities (excluding U.S. government securities and securities of other RICs) of any one issuer, or of any two or more issuers that are
 controlled by the Company and are engaged in the same or similar or related trades or business, or the securities of one or more "qualified publicly traded partnerships."

As a RIC, in any taxable year with respect to which the Company distributes (or is treated as distributing) at least 90% of its investment company taxable income (which includes, among other items, dividends, interest and the excess of any net short-term capital gains over net long-term capital losses and other taxable income other than any net capital gain reduced by deductible expenses), the Company generally will not be subject to U.S. federal income tax on its investment company taxable income and net capital gains that are distributed to Stockholders. If the Company fails to distribute its income on a timely basis, it will be subject to a nondeductible 4% excise tax. To avoid this tax, the Company must 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% of its 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% of its capital gains in excess of its capital losses (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year; and

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

The Company is generally expected to distribute substantially all of its earnings on a quarterly basis, though one or both of the considerations described below could result in the Company delaying distributions until the end of the fiscal year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company may make investments that are subject to tax rules that require it to include amounts in income before cash corresponding to that income is received, or that defer or limit the Company's ability
 to claim the benefit of deductions or losses. For example, if the Company holds securities issued with original issue discount, such discount will be included in income in the taxable year of accrual and before any corresponding cash
 payments are received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In cases where the Company's taxable income exceeds its available cash flow, the Company will need to fund distributions with the proceeds of sale of securities or with borrowed money, and will raise funds
 for this purpose opportunistically over the course of the year.

In certain circumstances (*e.g.*, where the Company is required to recognize income before or without receiving cash representing such income), the Company may have difficulty making distributions in the amounts necessary to satisfy the requirements for maintaining RIC status and for avoiding income and excise taxes. Accordingly, the Company may have to sell investments at times it would not otherwise consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. If the Company is not able to obtain cash from other sources, it may fail to qualify as a RIC and thereby be subject to corporate-level income tax.

Although the Company does not presently expect to do so, it will be authorized to borrow funds and to sell assets in order to satisfy distribution requirements. However, under the 1940 Act, it will not be permitted to make distributions to its Stockholders while its debt obligations and other senior securities are outstanding unless certain "asset coverage" tests are met. See "*Item 1(b). Description of Business—Regulation as a Business Development Company—Senior Securities*" above. Moreover, the Company's ability to dispose of assets to meet distribution requirements may be limited by (1) the illiquid nature of its portfolio and/or (2) other requirements relating to its qualification as a RIC, including the diversification tests. If the Company disposes of assets in order to meet the annual distribution requirement or to avoid the 4% federal excise tax, it may make such dispositions at times that, from an investment standpoint, are not advantageous.

Investments in below investment grade instruments may present special tax issues for the Company. U.S. federal income tax rules are not entirely clear about issues such as when the Company may cease to accrue interest, original issue discount or market discount, when and to what extent deductions may be taken for bad debts or worthless instruments, how payments received on obligations in default should be allocated between principal and income and whether exchanges of debt obligations in a bankruptcy or workout context are taxable. The Company intends to address these and other issues to the extent necessary in order to seek to ensure that the Company distributes sufficient income to avoid any material U.S. federal income tax or the 4% federal excise tax.

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A portfolio company in which the Company invests may face financial difficulties that require the Company to work-out, modify or otherwise restructure the Company's investment in the portfolio company. Any such transaction could, depending upon the specific terms of the transaction, result in unusable capital losses and future non-cash income. Any such transaction could also result in the Company receiving assets that give rise to non-qualifying income for purposes of the 90% gross income test described above or otherwise would not count toward satisfying the diversification tests described above. Furthermore, some of the income that the Company might otherwise earn, such as fees for providing managerial assistance, certain fees earned with respect to the Company's investments, income recognized in a work-out or restructuring of a portfolio investment, or income recognized from an equity investment in an operating partnership, may not satisfy the 90% gross income test. To manage the risk that such income might disqualify the Company as a RIC for failure to satisfy the 90% gross income test, one or more subsidiary entities treated as U.S. corporations for U.S. federal income tax purposes may be employed to earn such income and (if applicable) hold the related asset. Such subsidiary entities will be required to pay entity-level income tax on their earnings, which ultimately will reduce the yield to Stockholders on such fees and income.

Gain or loss recognized by the Company from warrants or other securities acquired by the Company, as well as any loss attributable to the lapse of such warrants, generally will be treated as capital gain or loss. Such gain or loss generally will be long-term or short-term depending on how long the Company held a particular warrant or security.

Certain of the Company's investment practices may be subject to special and complex U.S. federal income tax provisions that may, among other things: (i) disallow, suspend or otherwise limit the allowance of certain losses or deductions; (ii) convert lower taxed long- term capital gain into higher taxed short-term capital gain or ordinary income; (iii) convert an ordinary loss or a deduction into a capital loss (the deductibility of which is more limited); (iv) cause the Company to recognize income or gain without a corresponding receipt of cash; (v) adversely affect the time as to when a purchase or sale of securities is deemed to occur; (vi) adversely alter the characterization of certain complex financial transactions; and (vii) produce income that will not be qualifying income for purposes of the 90% gross income test described above.

While the Company is expected to distribute any income and capital gains in the manner necessary to minimize imposition of the 4% excise tax, it may not be able to distribute amounts sufficient to avoid the imposition of the tax entirely. In that event, the Company will be liable for the tax only on the amount by which it does not meet the foregoing distribution requirement. Under certain circumstances, the Advisor may, in its sole discretion, determine that it is in the interests of the Company to retain rather than distribute some amount of income and capital gains, and accordingly cause the Company to bear the excise tax burden associated therewith.

A RIC is limited in its ability to deduct expenses in excess of its investment company taxable income. If the Company's deductible expenses in a given taxable year exceed the Company's investment company taxable income, the Company may incur a net operating loss for that taxable year. However, a RIC is not permitted to carry forward net operating losses to subsequent taxable years and such net operating losses do not pass through to its U.S. Holders. In addition, deductible expenses can be used only to offset investment company taxable income, not net capital gain. A RIC may not use any net capital losses (that is, the excess of realized capital losses over realized capital gains) to offset its investment company taxable income, but may carry forward such net capital losses, and use them to offset future capital gains, indefinitely. Due to these limits on deductibility of expenses and net capital losses, the Company may for tax purposes have aggregate taxable income for several taxable years that the Company is required to distribute and that is taxable to U.S. Holders even if such taxable income is greater than the net income the Company actually earns during those taxable years. Any underwriting fees paid by the Company are not deductible. In the event that the Company were to experience an ownership change as defined under the Code, the capital loss carryforwards and other favorable tax attributes of the Company, if any, may be subject to limitation.

If in any particular taxable year, the Company does not qualify as a RIC or fails to satisfy the 90% distribution requirement, all of the Company's taxable income (including net capital gains) will be subject to tax at regular corporate rates without any deduction for distributions to Stockholders, and distributions will be taxable to Stockholders as ordinary dividends to the extent of the Company's current and accumulated earnings and profits. Subject to certain limitations under the Code, such distributions generally would be eligible (i) to be treated as "qualified dividend income" in the case of individual and other non-corporate U.S. Holders and (ii) for the dividends received deduction in the case of corporate U.S. Holders. Distributions in excess of the Company's current and accumulated earnings and profits would be treated first as a return of capital to the extent of the U.S. Holder's tax basis, and any remaining distributions would be treated as a capital gain. A return of capital reduces a U.S. Holder's tax basis in its shares of the Company, thus reducing any loss or increasing any gain on the subsequent taxable disposition by the U.S. Holder of those shares. In addition, the Company could be required to recognize unrealized gains, pay taxes and make distributions (which could be subject to interest charges) before requalifying for taxation as a RIC.

In the event the Company invests in foreign securities, it may be subject to withholding and other foreign taxes with respect to those securities. The Company is not expected to satisfy the requirement to pass through to Stockholders their share of the foreign taxes paid by the Company.

*Taxation of U.S. Holders*

Distributions from the Company's investment company taxable income (consisting generally of net investment income, net short-term capital gain, and net gains from certain foreign currency transactions) generally will be taxable to U.S. Holders as ordinary income to the extent made out of the Company's current or accumulated earnings and profits. Distributions generally will not be eligible for the dividends received deduction allowed to corporate Stockholders or for the reduced rates applicable to certain qualified dividend income received by non-corporate Stockholders. Distributions that the Company designates as net capital gain distributions will be taxable to U.S. Holders as long-term capital gain regardless of how long such U.S. Holders have held their shares. Distributions in excess of the Company's current and accumulated earnings and profits first will reduce a U.S. Holder's adjusted tax basis in such U.S. Holder's Common Stock and, after the adjusted tax basis is reduced to zero, will constitute capital gains to such U.S. Holder.

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Certain distributions reported by the Company as Section 163(j) interest dividends may be treated as interest income by U.S. Holders for purposes of the tax rules applicable to interest expense limitations under Section 163(j) of the Code. Such treatment by a U.S. Holder is generally subject to holding period requirements and other potential limitations, although the holding period requirements are generally not applicable to dividends declared by money market funds and certain other funds that declare dividends daily and pay such dividends on a monthly or more frequent basis. The amount that the Company is eligible to report as a Section 163(j) dividend for a tax year is generally limited to the excess of the Company's business interest income over the sum of the Company's (i) business interest expense and (ii) other deductions properly allocable to the Company's business interest income.

Distributions declared by the Company in October, November, or December of any year and payable to Stockholders of record on a specified date in such a month will be deemed to have been paid by the Company on December 31st of the previous calendar year if the distributions are paid during the following January. Accordingly, distributions received in January may be subject to taxation in the preceding year.

Distributions will be treated in the manner described above regardless of whether such distributions are paid in cash or invested in additional shares pursuant to the dividend reinvestment plan. U.S. Holders receiving distributions in the form of additional shares will generally be treated as receiving a distribution in the amount of the fair market value of the distributed shares. The additional shares received by a U.S. Holder pursuant to the dividend reinvestment plan will have a new holding period commencing on the day following the day on which the shares were credited to the U.S. Holder's account.

If an investor purchases shares shortly before the record date of a distribution, the price of the shares will include the value of the distribution, and the investor will be subject to tax on the distribution even though it represents a return of their investment.

Although the Company intends to distribute any net long-term capital gains at least annually, it may in the future decide to retain some or all of its net long-term capital gains but designate the retained amount as a "deemed distribution." In that case, among other consequences, the Company will pay corporate-level U.S. federal income tax on the retained amount, each U.S. Holder will be required to include its share of the deemed distribution in income as if it had been distributed to the U.S. Holder, and the U.S. Holder will be entitled to claim a credit equal to its allocable share of the tax paid on the deemed distribution by the Company. The amount of the deemed distribution net of such tax will be added to the U.S. Holder's tax basis for their Common Stock or preferred stock. Since the Company expects to pay tax on any retained capital gains at its regular corporate capital gain tax rate, and since that rate is in excess of the maximum rate currently payable by non-corporate U.S. Holders on long-term capital gains, the amount of tax that non-corporate U.S. Holders will be treated as having paid and for which they will receive a credit will exceed the tax they owe on the retained net capital gains. Such excess generally may be claimed as a credit against the U.S. Holder's other U.S. federal income tax obligations or may be refunded to the extent it exceeds a Stockholder's liability for U.S. federal income tax. A Stockholder that is not subject to federal income tax or otherwise 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 to claim a refund for the taxes paid by the Company. To utilize the deemed distribution approach, the Company must provide written notice to its Stockholders. The Company cannot treat any of its investment company taxable income as a "deemed distribution."

If a U.S. Holder sells or exchanges its shares of the Company, the holder will recognize gain or loss equal to the difference between its adjusted basis in the shares sold and the amount received. Any such gain or loss will be treated as a capital gain or loss and will be long-term capital gain or loss if the shares have been held for more than one year. Any loss recognized on a sale or exchange of shares that were held for six months or less will be treated as long-term, rather than short-term, capital loss to the extent of any capital gain distributions previously received (or deemed to be received) thereon. No loss will be allowed on the sale or other disposition of shares if the owner acquires (including pursuant to the dividend reinvestment plan) or enters into a contract or option to acquire securities that are substantially identical to such shares within 30 days before or after the disposition. In such a case, the basis of the securities acquired will be adjusted to reflect the disallowed loss.

From time to time, the Company may offer to repurchase its outstanding shares. U.S. Holders who tender all shares of the Company held, or considered to be held, by them will be treated as having sold their shares and generally will realize a capital gain or loss. If a U.S. Holder tenders fewer than all of its shares or fewer than all shares tendered are repurchased, such U.S. Holder may be treated as having received a taxable dividend upon the tender of its shares. In such a case, there is a risk that non-tendering U.S. Holders, and U.S. Holders who tender some but not all of their shares or fewer than all of whose shares are repurchased, in each case whose percentage interests in the Company increase as a result of such tender, will be treated as having received a taxable distribution from the Company. The extent of such risk will vary depending upon the particular circumstances of the tender offer, and in particular whether such offer is a single and isolated event or is part of a plan for periodically redeeming shares of the Company.

Under U.S. Treasury regulations, if a stockholder recognizes a loss with respect to shares of $2 million or more for an individual stockholder or $10 million or more for a corporate stockholder, the stockholder must file with the IRS a disclosure statement on IRS Form 8886. Direct owners of portfolio securities are in many cases excepted from this reporting requirement, but under current guidance, stockholders of a RIC are not excepted. Future guidance may extend the current exception from this reporting requirement to stockholders of most or all RICs. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer's treatment of the loss is proper. U.S. Holders should consult their tax advisors to determine the applicability of these regulations in light of their individual circumstances.

The Company or the applicable withholding agent will be required to withhold U.S. federal income tax ("backup withholding") currently at a rate of 24% from all taxable distributions to any non-corporate U.S. Holder (1) who fails to furnish the Company with a correct taxpayer identification number or a certificate that such Stockholder is exempt from backup withholding or (2) with respect to whom the IRS notifies the Company that such Stockholder has failed to properly report certain interest and dividend income to the IRS and to respond to notices to that effect. An individual's taxpayer identification number is his or her social security number. Any amount withheld under backup withholding is allowed as a credit against the U.S. Holder's U.S. federal income tax liability and may entitle such Stockholder to a refund, provided that proper information is timely provided to the IRS.

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An additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions received from the Company and net gains from redemptions or other taxable dispositions of the Company's Common Stock) of U.S. individuals, estates and trusts to the extent that such person's "modified adjusted gross income" (in the case of an individual) or "adjusted gross income" (in the case of an estate or trust) exceed certain threshold amounts.

*Limitations on Deductibility of Certain Losses and Expenses*. If the Company is not treated as a "publicly offered regulated investment company" for any calendar year as a result of its shares being either (i) continuously offered pursuant to a public offering, (ii) regularly traded on an established securities market or (iii) held by at least 500 persons at all times during the taxable year, then a U.S. Holder that is an individual, estate or trust may be subject to limitations on miscellaneous itemized deductions in respect of its share of expenses that the Company incurs, to the extent that the expenses would have been subject to limitations if the holder had incurred them directly. In particular, miscellaneous itemized deductions generally are not deductible by non-corporate U.S. Holders, including individuals, trusts, and estates. In this case, the Company would be required to report the relevant income and expenses, including the Management Fee, on Form 1099-DIV, and affected holders will be required to take into account their allocable share of such income and expenses. There is no assurance that the Company will be treated as a "publicly offered regulated investment company" at all times.

*Tax-Exempt Investors*. The direct conduct by a tax-exempt U.S. Holder of the activities that the Company is expected to conduct could give rise to "unrelated business taxable income." However, a BDC is a corporation for U.S. federal income tax purposes and its business activities generally will not be attributed to its Stockholders for purposes of determining treatment under current law. Therefore, a tax-exempt U.S. Holder should not be subject to U.S. federal income taxation solely as a result of the holder's ownership of the Company's shares and receipt of dividends that it pays. Moreover, under current law, if the Company incurs indebtedness, such indebtedness will not be attributed to portfolio investors in its stock. Therefore, a tax-exempt U.S. Holder should not be treated as earning income from "debt-financed property" and dividends paid by the Company should not be treated as "unrelated debt-financed income" solely as a result of indebtedness that the Company incurs. Proposals periodically are made to change the treatment of "blocker" investment vehicles interposed between tax-exempt investors and non-qualifying investments. In the event that any such proposals were to be adopted and applied to BDCs, the treatment of dividends payable to tax-exempt investors could be adversely affected.

*Non-U.S. Holders*. Subject to the exceptions described below, dividends that the Company pays to a Non-U.S. Holder generally will be subject to U.S. withholding tax at a 30% rate unless the holder qualifies for, and complies with the procedures for claiming, an exemption or reduced rate under an applicable income tax treaty, or the holder qualifies, and complies with the procedures for claiming, an exemption by reason of its status as a foreign government-related entity, which will generally be withheld from such dividends.

Certain properly reported dividends are generally exempt from withholding of U.S. federal income tax where paid in respect of a RIC's (i) "qualified net interest income" (generally, its U.S.-source interest income, other than certain contingent interest and interest from obligations of a corporation or partnership in which the RIC or the Non-U.S. Holder are at least a 10% Stockholder, reduced by expenses that are allocable to such income) or (ii) "qualified short-term capital gains" (generally, the excess of the RIC's net short-term capital gain, other than short-term capital gains recognized on the disposition of U.S. real property interests, over the RIC's long-term capital loss), as well as if certain other requirements are satisfied. Nevertheless, no assurance can be given as to whether any of the Company's distributions will be eligible for this exemption from withholding of U.S. federal income tax or, if eligible, will be reported as such by the Company. Furthermore, in the case of shares of Company stock held through an intermediary, the intermediary may have withheld U.S. federal income tax even if the Company reported the payment as an interest-related dividend or short-term capital gain dividend. Since the Company's Common Stock is subject to significant transfer restrictions, and an investment in the Company's Common Stock will generally be illiquid, Non-U.S. Holders whose distributions on the Company's Common Stock are subject to withholding of U.S. federal income tax may not be able to transfer their shares of the Company's Common Stock easily or quickly or at all.

Non-U.S. Holders generally are not subject to U.S. tax on capital gain dividends, any amounts retained by the Company that are designated as undistributed capital gains and capital gains realized on the sale of the Company's shares or on actual or deemed distributions of the Company's net capital gains unless such income or gains are effectively connected with the conduct of a U.S. trade or business by the holder and, if an income tax treaty applies, are attributable to a permanent establishment in the United States, or in case of a nonresident individual, the holder is present in the United States for 183 or more days during the taxable year and certain other requirements are met. In addition, a repurchase of shares may be subject to U.S. federal income tax withholding to the extent such repurchase is treated as a taxable distribution, as described above.

A BDC is a corporation for U.S. federal income tax purposes. Under current law, a Non-U.S. Holder will not be considered to be engaged in the conduct of a business in the United States solely by reason of its ownership in a BDC. Proposals periodically are made to change the treatment of "blocker" investment vehicles interposed between foreign investors and investments that would otherwise result in such investors being considered to be engaged in the conduct of a business in the United States. In the event that any such proposals were to be adopted and applied to BDCs, the treatment of dividends payable to foreign investors could be adversely affected.

Distributions will be treated in the manner described above regardless of whether such distributions are paid in cash or invested in additional shares pursuant to the dividend reinvestment plan. A Non-U.S. Holder receiving distributions in the form of additional shares will generally be treated as receiving a distribution in the amount of the fair market value of the distributed shares. If the distribution is subject to withholding tax as described above, only the net after-tax amount will be reinvested in additional shares. If the distribution is "effectively connected" with a U.S. trade or business of the Non-U.S. Holder (and, if required by an applicable tax treaty, is attributable to a U.S. permanent establishment of the Non-U.S. Holder), and the Non-U.S. Holder complies with the applicable certification and disclosure requirements, the full amount of the distribution generally will be reinvested in additional shares and will nevertheless be subject to U.S. federal income tax at the rates and in the manner applicable to U.S. persons generally. The additional shares received by a Non-U.S. Holder pursuant to the dividend reinvestment plan will have a new holding period commencing on the day following the day on which the shares were credited to the Non-U.S. Holder's account.

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The Company may be required to withhold from distributions that are otherwise exempt from U.S. federal withholding tax (or taxable at a reduced treaty rate) unless the Non-U.S. Holder certifies his or her foreign status under penalties of perjury or otherwise establishes an exemption.

Non-U.S. Holders may also be subject to U.S. estate tax with respect to their investment in Common Shares.

*FATCA Compliance*. Under Sections 1471 through 1474 of the Code (such Sections commonly referred to as "FATCA"), a 30% U.S. federal withholding tax may apply to any dividends that the Company pays to Non-U.S. Holders that are considered for U.S. federal income tax purposes to be foreign financial institutions or non-financial foreign entities, as well as to Non-U.S. Holders that hold their shares through such an institution or entity. In general, an exemption from U.S. withholding tax will be available only if the foreign financial institution has entered into an agreement with the U.S. government, or under certain intergovernmental agreements collects and provides to the U.S. tax authorities information about its accountholders (including certain investors in such institution) and if the non-financial foreign entity has provided the withholding agent with a certification identifying certain of its direct and indirect U.S. owners. Any U.S. taxes withheld pursuant to the aforementioned requirements from distributions paid to affected Non-U.S. Holders who are otherwise eligible for an exemption from, or reduction of, U.S. federal withholding taxes on such distributions may only be reclaimed by such Non-U.S. Holders by timely filing a U.S. tax return with the IRS to claim the benefit of such exemption or reduction.

*Other Taxation*. Stockholders may be subject to state, local and foreign taxes on their distributions from the Company. Stockholders are advised to consult their own tax advisers with respect to the particular tax consequences to them of an investment in the Company.

#### ERISA CONSIDERATIONS
ERISA and the Code impose restrictions on certain transactions involving (i) employee benefit plans (as defined in Section 3(3) of ERISA) that are subject to Title I of ERISA, (ii) plans subject to Section 4975 of the Code, including individual retirement accounts and Keogh plans, and (iii) any entities whose underlying assets include plan assets by reason of a plan's investment in such entities (collectively "Plans"). ERISA and the rules and regulations of the Department of Labor (the "DOL") promulgated thereunder contain provisions that should be considered by fiduciaries of those Plans and their legal advisors.

*Fiduciary Duty.* In deciding upon an investment in the Company, Plan fiduciaries should consider their basic fiduciary duties under ERISA Section 404, which require them to discharge their investment duties prudently and solely in the interests of the Plan participants and beneficiaries. Plan fiduciaries must give appropriate consideration to the role that an investment in the Company would play in the Plan's overall investment portfolio. In analyzing the prudence of an investment in the Company, special attention should be given to the DOL's regulation on investment duties (29 C.F.R. § 2550.404a-1). That regulation requires, among other things (i) a determination that each investment is designed reasonably, as part of the portfolio, to further the Plan's purposes, (ii) an examination of risk and return factors, and (iii) consideration of the portfolio's composition with regard to diversification, the liquidity and current return of the total portfolio relative to anticipated cash flow needs of the Plan, and the projected return of the total portfolio relative to the Plan's funding objectives. ERISA also requires a fiduciary to discharge such duties in accordance with the documents governing the Plan insofar as they are consistent with ERISA. Fiduciaries that are considering an investment in the Company should also consider the applicability of the prohibited transaction provisions of ERISA and Section 4975 of the Code to such an investment (as discussed further below) and confirm that such investment will not constitute or result in a prohibited transaction or any other violation of an applicable requirement of ERISA. Neither the Advisor nor the Company or any of their respective affiliates is responsible for determining, and none of them makes any representation regarding, whether the Company's Common Stock is an appropriate investment for Plans generally or any particular Plan.

*Prohibited Transactions.* Section 406 of ERISA and Section 4975 of the Code prohibit certain transactions involving the assets of Plans and certain persons, referred to as "parties in interest" under ERISA or "disqualified persons" under Section 4975 of the Code, having certain relationships to such Plans, unless a statutory or administrative exemption is applicable to the transaction.

A purchase of the Company's Common Stock by a Plan having a relationship with the Advisor or the Company, or any of their respective affiliates could, under certain circumstances, be considered a transaction prohibited under ERISA and/or Section 4975 of the Code. Accordingly, an authorized fiduciary of an investing Plan will be deemed to have represented and agreed, among other things, that the Plan's purchase and holding of the Company's Common Stock is not and will not constitute or otherwise result in a non-exempt prohibited transaction.

*Plan Assets.* Under Section 3(42) of ERISA and regulations issued by the U.S. Department of Labor (the "Plan Asset Regulation"), the assets of the Company will be treated as plan assets if participation by Benefit Plan Investors equals or exceeds 25% of any class of equity of the Company unless another exception under the Plan Asset Regulation applies. The term "Benefit Plan Investor" is generally defined as (a) any employee benefit plan (as defined in Section 3(3) of ERISA), subject to the provisions of Title I of ERISA, (b) any Plan subject to Section 4975 of the Code, and (c) any entity whose underlying assets include Plan assets by reason of a Plan's investment in the entity. For purposes of the 25% determination, the value of equity interests held by a person (other than a Benefit Plan Investor) that has discretionary authority or control with respect to the assets of the entity or that provides investment advice for a fee (direct or indirect) with respect to such assets (or any affiliate of such person) is disregarded.

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The Advisor intends to operate the Company so that the assets of the Company are not considered "plan assets." In that regard, the Advisor intends to limit investments by Benefit Plan Investors to less than 25% of each class of equity of the Company as described above. In the event that the Company's assets otherwise would be considered to be "plan assets," the Subscription Agreement authorizes the Advisor and requires ERISA Partners (as defined in the Subscription Agreement) to take certain actions to alleviate the effect of such determination, including a sale of shares to other Stockholders or a third party (with the consent of the Advisor), the reduction of Capital Contributions by ERISA Partners or the redemption of all or a portion of the Stockholder's shares, so that participation by Benefit Plan Investors does not exceed 25% of any class of equity of the Company as described above.

In addition to the foregoing, the Plan Asset Regulation provides an exception to plan assets treatment where the equity interest purchased by Plans is a "publicly-offered security." The Plan Asset Regulation defines a "publicly-offered security" as a security that is "freely transferable," "widely held" and either part of a class of securities registered under the Exchange Act or sold pursuant to an effective Registration Statement under the Securities Act if the securities are registered under the Exchange Act within 120 days after the end of the fiscal year of the issuer during which the public offering occurred. A security is considered "widely held" only if it is part of a class of securities that is owned by 100 or more investors independent of the issuer and of one another. However, a security will not fail to be "widely held" solely because the number of independent investors falls below 100 subsequent to the initial offering as a result of events beyond the issuer's control. The Plan Asset Regulation provides that whether a security is "freely transferable" is a factual question to be determined on the basis of all relevant facts and circumstances. The Plan Asset Regulation further provides that, where a security is part of an offering in which the minimum investment is $10,000 or less, certain restrictions ordinarily will not, alone or in combination, affect the finding that such securities are "freely transferable." It is noted that the Plan Asset Regulation only establishes a presumption in favor of the finding of free transferability where the restrictions are consistent with the particular types of restrictions listed in the Plan Asset Regulation. Notwithstanding any of the foregoing, if the Company determines that the Common Stock is considered a "publicly-offered security" for purposes of the Plan Asset Regulation, the Company may thereupon decide to operate on the basis that its assets are not "plan assets" pursuant to the "publicly-offered securities" exception regardless of the number of Benefit Plan Investors owning the Common Stock.

*Insurance Company General Accounts.* Any insurance company proposing to invest assets of its general account in the Company should consider the extent to which such investment would be subject to the requirements of ERISA in light of the U.S. Supreme Court's decision in John Hancock Mutual Life Insurance Co. v. Harris Trust and Savings Bank and under any subsequent legislation or other guidance that has or may become available relating to that decision.

*Reporting of Indirect Compensation.* The descriptions contained herein of fees and compensation, including the Management Fee payable to the Advisor, are intended to satisfy the disclosure requirements for "eligible indirect compensation" for which the alternative reporting option on Schedule C of Form 5500 Annual Return/Report may be available. The Advisor will, upon written request, furnish any other information relating to the Advisor's compensation received in connection with the Company that is required for a Plan investor to comply with the reporting and disclosure requirements of Title I of ERISA and the regulations, forms and schedules issued thereunder.

*Governmental, Church and Non-U.S. Plans.* Governmental plans, certain church plans and non-U.S. plans, while not subject to the fiduciary responsibility provisions of ERISA or the provisions of Section 4975 of the Code, may nevertheless be subject to Federal, state, local, non-U.S. or other laws and regulations that are similar to such provisions of ERISA and the Code ("Similar Law"). The Adviser and its affiliates disclaim all responsibility for determining whether an investment in the Company would comply with any such Similar Law for a given investor and expressly disclaim that they have adequately summarized or even identified such considerations. In addition, any investor that is a governmental plan, church plan, or non-U.S. plan may be required to represent that its investment will not subject the Company or the Advisor to any Similar Law. Fiduciaries of such plans should consult with their counsel before purchasing any interests in the Company.

The foregoing discussion of certain aspects of ERISA, Section 4975 of the Code and related matters is based upon ERISA, judicial decisions, U.S. Department of Labor regulations, rulings and opinions in existence on the date hereof, all of which are subject to change and should not be construed as legal advice. This summary is general in nature and does not address every issue that may be applicable to the Company or to a particular investor. Trustees and other fiduciaries of employee benefit plans subject to ERISA should consult with their own counsel with respect to issues arising under ERISA, Section 4975 of the Code and related matters and make their own independent investment decision.

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| **Item 1A.**<br>| **Risk Factors** |

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Investing in the Company's Common Stock involves significant risks. A prospective investor should consider, among other factors, the risk factors set forth below. Additional risks and uncertainties not presently known to the Company or not presently deemed material by the Company may also impair the Company's operations and performance. If any of the following events occur, the Company's business, financial condition, results of operations and cash flows could be materially and adversely affected. In such case, the net asset value of the Company's Common Stock could decline, and you may lose all or part of your investment.

The following is a summary of the principal risk factors associated with an investment in our securities. Further details regarding each risk included in the below summary list can be found further below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares of the Company's Common Stock are an illiquid investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investments in private and middle-market companies involve a number of significant risks.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are dependent upon Star Mountain's access to its investment professionals for our success.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Economic recessions or downturns could impair the portfolio companies, and defaults by the portfolio companies will harm the Company's operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in the general interest rate environment may adversely affect the value of the financial obligations to be held or issued by us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inflation could adversely affect the business, results of operations and financial condition of the Company's portfolio companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our investment portfolio is and will continue to be recorded at fair value as determined in good faith by our Board of Directors and, as a result, there is and will continue to be uncertainty as to the
 value of our portfolio investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There are potential conflicts of interest, including the management of other investment funds and accounts by the Advisor and Star Mountain, which could impact our investment returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fee structure under the Advisory Agreement may induce the Advisor to pursue speculative investments and incur leverage, which may not be in the best interests of our stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Regulations governing our operation as a BDC will affect our ability to, and the way in which we, raise additional capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our financing agreements contain various covenants, which, if not complied with, could accelerate our repayment obligations thereunder, thereby materially and adversely affecting our liquidity, financial
 condition, results of operations and ability to pay distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The information and technology systems of the Company, the Advisor and their respective service providers may be vulnerable to cyber-attacks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stockholders may be subject to significant adverse consequences in the event such a Stockholder defaults on its capital commitment to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There is no public market for shares of our common stock, and we do not expect there to be a market for our shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Geopolitical conflicts, including sanctions and market volatility related to such conflicts, may adversely impact the industries and portfolio companies in which the Company invests.

#### General Investment Risks
All investments, including the Company's investments, risk the loss of capital. The Advisor believes that the Company's investment strategy and research techniques moderate this risk through a careful selection of investments. No guarantee or representation is made (and no such guarantee or representation could be made) that the Company's investment strategy will be successful.

#### Risks Related to the Company's Investments

#### Illiquid Nature of Investment Portfolio
The Company generally invests in limited partnership interests of funds focused on making investments in SMBs and in long-term loans to and private equity investments in small and medium-sized private companies that do not have an established trading market. The Company's Portfolio Investments typically exit their debt and equity investments through structured terms and amortization or when the portfolio company has a Liquidity Event such as a sale, recapitalization, or initial public offering of the company. The illiquidity of the Company's investments may adversely affect the Company's ability to dispose of debt and equity securities at times when it may be otherwise advantageous for the Company to liquidate such investments. In addition, if the Company were forced to immediately liquidate some or all of the investments in the portfolio, the proceeds of such liquidation could be significantly less than the current value of such investments.

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**Investing in Private Companies Involves a High Degree of Risk** 

The Company's portfolio consists of long-term loans to and investments in SMBs. Investments in private businesses involve a high degree of business and financial risk, which can result in substantial losses for the Stockholders in those investments and accordingly should be considered speculative. There is generally no publicly available information about the companies in which the Company invests, and the Company relies significantly on the diligence of its service providers and agents to obtain information in connection with investment decisions. If the Company is unable to identify all material information about these companies, among other factors, the Company may fail to receive the expected return on investment or lose some or all of the money invested in these companies. In addition, these businesses may have shorter operating histories, narrower product lines, smaller market shares and less experienced management than their larger competitors and may be more vulnerable to customer preferences, market conditions, and loss of key personnel, or economic downturns, which may adversely affect the return on, or the recovery of, investments in such businesses. As a Stockholder, the Company is subject to the risk that a Portfolio Investment may make a business decision that does not serve the Company's best interests, which could decrease the value of the investment. Deterioration in an underlying portfolio company's financial condition and prospects may be accompanied by deterioration in the collateral for a loan, if any, and an event of default by the portfolio company. Such an event may reduce the Company's anticipated return on invested capital and delay the timeline for distributions to Stockholders.

#### Illiquid Nature of the Company's Common Stock
The shares may be issued in reliance upon certain exemptions from registration or qualification under applicable Federal and state securities laws and so may be subject to certain restrictions on transferability. There is no public market for the shares and none is expected to develop. In addition, Stockholders will not be entitled to withdraw their Capital Contributions, and shares may not be assigned or transferred without the consent of the Advisor, subject to certain exceptions. Accordingly, the shares constitute illiquid investments and should only be purchased by persons that are "accredited investors" as such term is defined under the Securities Act of 1933, as amended, and able to bear the risk of their investment in shares for an indefinite period of time.

#### Limited Collaboration History of the Members of the Management Team
The Company has a limited operating history. The members of the management team, including the Investment Committee, have been collaborating with each other as an investment management team for a relatively short period of time. There may be a period of time required for newer management team members to familiarize themselves with the working formats and styles of the other members. Failure to adequately do so may result in slower capital deployment and lower rates of return to Stockholders. In addition, there can be no assurance that all members of the management team will remain officers or employees of the Advisor, and additional officers and employees may be added to the Management team during the term of the Company.

#### No Guarantee to Replicate Historical Results Achieved by Star Mountain or its Affiliates
The Company's primary focus in making investments may differ from those of existing investment funds, accounts or other investment vehicles that are or have been managed by Star Mountain. The Company may consider co-investing in Portfolio Investments with other investment funds, accounts or investment vehicles managed by Star Mountain. Any such investments will be subject to regulatory limitations and approvals by the Company's independent directors. The Company can offer no assurance, however, that it will be able to obtain such approvals or develop opportunities that comply with such limitations. There can be no guarantee that the Company will replicate the historical results achieved by similar strategies managed by Star Mountain, and investment returns could be substantially lower than the returns achieved by them in prior periods. Additionally, all or a portion of the prior results may have been achieved in particular market conditions which may never be repeated. Moreover, current or future market volatility and regulatory uncertainty may have an adverse impact on the Company's future performance.

#### Negative Impact on Portfolio Companies from Economic Recessions or Downturns
Many of the companies in which the Company makes and intends to make investments may be susceptible to economic slowdowns or recessions. An economic slowdown may affect the ability of a company to repay loans or engage in a Liquidity Event such as a sale, recapitalization, or initial public offering. The amount of nonperforming assets may increase and the value of the Company's portfolio may decrease during these periods. Adverse economic conditions also may decrease the value of any collateral securing some of the loans. These conditions could lead to financial losses to the Company's portfolio and overall assets.

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#### Potential Adverse Effects of New or Modified Laws or Regulations
The Company and its portfolio companies are subject to regulation at the local, state, federal and, in some cases, foreign levels. These laws and regulations, as well as their interpretation, are likely to change from time to time, and new laws and regulations may be enacted. Accordingly, any change in these laws or regulations, changes in their interpretation, or newly enacted laws or regulations, or any failure by the Company or its portfolio companies to comply with these laws or regulations, could require changes to certain of the Company's or its portfolio companies' business practices, negatively impact the Company's or its portfolio companies' operations, cash flows or financial condition, impose additional costs on the Company or its portfolio companies or otherwise adversely affect the Company's business or the business of its portfolio companies. In addition to the legal, tax and regulatory changes that are expected to occur, there may be unanticipated changes. The legal, tax and regulatory environment for BDCs, investment advisers and the instruments that they utilize (including derivative instruments) is continuously evolving.

Over the last several years, there also has been an increase in regulatory attention to the extension of credit outside of the traditional banking sector, raising the possibility that some portion of the non-bank financial sector will be subject to new regulation. While it cannot be known at this time whether any regulation will be implemented or what form it will take, increased regulation of non-bank credit extension could negatively impact the Company's operations, cash flows or financial condition, impose additional costs on the Company, intensify the regulatory supervision of the Company or otherwise adversely affect the Company's business.

#### Tariffs, Trade Policy and Import/Export Restrictions May Adversely Affect Portfolio Company Operations and Financial Condition
The Company's portfolio companies may be materially affected by changes in tariffs, trade policies, and import/export regulations imposed by the United States or foreign governments. The imposition of new tariffs, increases in existing tariff rates, or retaliatory trade measures by trading partners may increase the costs of raw materials, components, and finished goods that portfolio companies purchase or import, which could adversely affect their gross margins, profitability, and ability to compete effectively. Similarly, portfolio companies that export goods or services may face reduced demand, lost market access, or retaliatory tariffs that impair their international sales and competitive position.

Lower middle-market companies, in which the Company focuses its investments, may be particularly vulnerable to trade policy disruptions because they often lack the scale, diversified supply chains, and negotiating leverage available to larger enterprises to absorb, pass through, or mitigate tariff-related cost increases. These companies may have limited ability to quickly reconfigure supply chains, identify alternative suppliers, or relocate production operations in response to changing trade conditions. Any inability of a portfolio company to adequately respond to tariff increases or trade restrictions could result in decreased revenues, compressed profit margins, reduced cash flow, and an impaired ability to service debt obligations owed to the Company.

In addition, trade policy uncertainty may cause portfolio companies to delay capital expenditures, hiring decisions, or expansion plans, which could negatively affect their growth prospects and, in turn, the value of the Company's investments. Tariff disputes and trade tensions may also contribute to broader macroeconomic volatility, supply chain disruptions, inflationary pressures, and currency fluctuations, each of which could further adversely impact portfolio company operations and the Company's investment returns.

There can be no assurance that the current or future tariff environment will not have a material adverse effect on the Company's portfolio companies, the value of the Company's investments, or the Company's business, financial condition, and results of operations. Changes in trade policy may occur rapidly and without advance notice, and the Company and the Advisor may not be able to anticipate or adequately prepare for such changes.

#### General Credit Risks
The Company may be exposed to losses resulting from default and foreclosure of any such loans or interests in loans in which it has invested. Therefore, the value of underlying collateral, the creditworthiness of borrowers and the priority of liens are each of great importance in determining the value of the Company's investments. In the event of foreclosure, the Company or an affiliate thereof may assume direct ownership of any assets collateralizing such foreclosed loans. The liquidation proceeds upon the sale of such assets may not satisfy the entire outstanding balance of principal and interest on such foreclosed loans, resulting in a loss to the Company. Any costs or delays involved in the effectuation of loan foreclosures or liquidation of the assets collateralizing such foreclosed loans will further reduce proceeds associated therewith and, consequently, increase possible losses to the Company. In addition, no assurances can be made that borrowers or third parties will not assert claims in connection with foreclosure proceedings or otherwise, or that such claims will not interfere with the enforcement of the Company's rights.

#### Changes in the General Interest Rate Environment May Affect Net Investment Income
A reduction in the interest rates on new investments relative to interest rates on current investments could have an adverse impact on the Company's net interest income. However, an increase in interest rates could decrease the value of any investments the Company holds which earn fixed interest rates, including subordinated loans, senior and junior secured and unsecured debt securities and loans and high yield bonds, and also could increase the Company's interest expense, thereby decreasing its net income. Also, an increase in interest rates available to investors could make an investment in the Company's shares of Common Stock less attractive if the Company is not able to increase its dividend rate, which could reduce the value of an investment in the Company's shares of Common Stock. Further, rising interest rates could also adversely affect the Company's performance if such increases cause the Company's borrowing costs to rise at a rate in excess of the rate that its investments yield.

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Changing interest rates may have unpredictable effects on markets, may result in heightened market volatility and may detract from the Company's performance to the extent the Company is exposed to such interest rates and/or volatility. In periods of rising interest rates, to the extent the Company borrows money subject to a floating interest rate, the Company's cost of funds would increase, which could reduce its net investment income. Further, rising interest rates could also adversely affect the Company's performance if such increases cause the Company's borrowing costs to rise at a rate in excess of the rate that its investments yield.

If general interest rates rise, there is a risk that the portfolio companies in which the Company makes floating rate investments will be unable to pay escalating interest amounts, which could result in a default under their loan documents. Rising interest rates could also cause portfolio companies to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults. In addition, rising interest rates may increase pressure on the Company to provide fixed rate loans to its portfolio companies, which could adversely affect the Company's net investment income, as increases in its cost of borrowed funds would not be accompanied by increased interest income from such fixed-rate investments.

A change in the general level of interest rates can be expected to lead to a change in the interest rates the Company receives on many of its debt investments. Accordingly, a change in the interest rate could make it easier for the Company to meet or exceed the performance threshold in the Advisory Agreement and may result in a substantial increase in the amount of incentive fees payable to the Advisor, even though Stockholders' returns have not increased at the same rate.

#### Inflation Could Adversely Affect the Business, Results of Operations, and Financial Condition of our Portfolio Companies
Certain of the Company's portfolio companies are in industries that could be impacted by inflation. If such portfolio companies are unable to pass any increases in their costs of operations along to their customers, it could adversely affect their operating results and impact their ability to pay interest and principal on the Company's loans, particularly if interest rates rise in response to inflation. In addition, any projected future decreases in the Company's portfolio companies' operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of the Company's investments could result in future realized or unrealized losses and therefore reduce the Company's net assets resulting from operations.

#### Potential for Volatile Markets
The valuations of the Company's investments can be volatile. In addition, price movements may also be influenced by, among other things, changing supply and demand relationships, interest rates, inflationary pressures, trade, fiscal, monetary and exchange control programs and national and international political and economic events and policies. In addition, governments from time to time intervene in certain markets. Such intervention often is intended directly to influence prices and may cause or contribute to rapid fluctuations in asset prices, which may adversely affect the Company's returns.

#### Availability of Suitable Investments
The business of investing in SMBs has from time to time been highly competitive; the identification of attractive investment opportunities is difficult and involves a high degree of uncertainty. There are no assurances that the Company may be able to invest and reinvest its capital fully or that suitable investment opportunities will be identified which satisfy the Company's rate of return or maturity objectives. Competition in the industry and performance by the borrower could reduce the rates of return available to the Company on its investments.

#### Uncertainty as to the Value of Certain Portfolio Investments
The Company expects that many of its Portfolio Investments will take the form of securities that are not publicly traded. The fair value of loans, securities and other investments that are not publicly traded may not be readily determinable, and will be valued at fair value as determined in good faith by the Board, based on, among other considerations, the input of the Advisor, the Company's Audit Committee and independent third party firm(s) engaged at the direction of the Board. Most, if not all, of the Company's investments (other than cash and cash equivalents) will be classified as Level 3 assets under Topic 820 of the U.S. Financial Accounting Standards Board's Accounting Standards Codification, as amended, Fair Value Measurements and Disclosures ("ASC Topic 820"). This means that the Company's portfolio valuations will be based on unobservable inputs and the Company's assumptions about how market participants would price the asset or liability in question. The Company expects that inputs into the determination of fair value of Portfolio Investments will require significant management judgment or estimation. Even if observable market data are available, such information may be the result of consensus pricing information or broker quotes, which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimers materially reduces the reliability of such information. The Company expects to retain the services of one or more independent service providers to review the valuation of these loans and securities. The types of factors that may be taken into account in determining the fair value of investments generally include, as appropriate, comparison to publicly-traded securities including such factors as yield, maturity and measures of credit quality, the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company's ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, determinations of fair value may differ materially from the values that would have been used if a ready market for these loans and securities existed. The Company's net asset value could be adversely affected if determinations regarding the fair value of the Company's investments were materially higher than the values that the Company ultimately realizes upon the disposal of such loans and securities. In addition, the method of calculating the Management Fee (and the Incentive Compensation) may result in conflicts of interest between the Advisor, on the one hand, and Stockholders on the other hand, with respect to the valuation of investments.

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#### Syndication and/or Transfer of Investments
The Company, directly or through the use of one or more Subsidiary Investment Vehicles, may originate and/or purchase certain debt assets, including ancillary equity assets ("Assets"). The Company may also purchase certain Assets (including, participation interests or other indirect economic interests) that have been originated by other affiliated or unaffiliated parties and/or trading on the secondary market. The Company may, in certain circumstances, originate or purchase such Assets with the intent of syndicating and/or otherwise transferring a significant portion thereof, including to one or more offshore funds or accounts managed by the Advisor or any of their affiliates. In such instances, the Company will bear the risk of any decline in value prior to such syndication and/or other transfer. In addition, the Company will also bear the risk of any inability to syndicate or otherwise transfer such Assets or such amount thereof as originally intended, which could result in the Company owning a greater interest therein than anticipated.

#### Investments in Leveraged Portfolio Companies
The Company may invest in certain SBICs or other funds that may employ leverage as part of their strategy. In addition, as described above, the Company may borrow funds to consummate an investment or to pay the Management Fee. Leverage provides an opportunity for a fund to enhance the rate of return to its Stockholders, but creates additional risk with respect to the return of capital or the reduction of the rate of return for Stockholders in the event that such fund's investments have not performed well. Whether the effect of leverage is beneficial or detrimental to such fund's Stockholders will depend, among other things, on the cost of the leverage and the investment experience of such fund. With respect to SBA leverage, as is the case with other Federal funding programs, the SBIC program requires periodic Congressional reauthorization. Although the program has been in existence since 1958 and there is no reason to believe that it will not continue to be reauthorized, there can be no assurance that the maximum leverage authorized for any particular fiscal year will be adequate to meet the demand for debenture leverage in that year.

#### Small Business Company License
Employees of the Advisor (or an affiliate of the Advisor) may apply for a license to form a SBIC for the Company. If the application is approved and the SBA so permits, the SBIC license will be transferred to a wholly-owned subsidiary of the Company. Following such transfer, the SBIC subsidiary will be allowed to issue SBA-guaranteed debentures, subject to the required capitalization of the SBIC subsidiary. SBA guaranteed debentures carry long-term fixed rates that are generally lower than rates on comparable bank and other debt. The Company cannot assure you that the principals or employees of Star Mountain will be successful in receiving an SBIC license from the SBA or that the SBA will permit such license to be transferred to the Company. If the Company does receive an SBIC license, there is no minimum amount of SBA-guaranteed debentures that must be allocated to us.

#### SBA Fees and SBIC Debenture Rate
SBICs pay to the SBA fees associated with participation in the SBIC program and the use of SBA leverage. Such fees are set by the Federal Government and may change without warning and potentially impact returns of the Company. Additionally, fees associated with SBIC leverage rates are adjusted on a semi-annual basis. In advance of SBIC leverage drawdowns, debenture rates may increase and negatively impact returns.

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#### Possibility of the Need to Raise Additional Capital
The Company may need additional capital to fund new investments and grow its portfolio of investments once it has fully invested the net proceeds it has received. Unfavorable economic conditions could increase the Company's funding costs or limit its access to the capital. A reduction in the availability of new capital could limit the Company's ability to grow. In addition, the Company will be required to distribute at least 90% of its net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to Stockholders to maintain its qualification as a RIC. As a result, these earnings will not be available to fund new investments. An inability on the Company's part to access the capital successfully could limit its ability to grow its business and execute its business strategy fully and could decrease its earnings, if any, which would have an adverse effect on the value of its securities.

#### Conflicts of Interest
Certain of the Company's investment professionals serve or may serve in an investment management capacity to other funds managed by Star Mountain or its affiliated or related entities or unaffiliated entities and funds. As a result, investment professionals may allocate such time and attention as is deemed appropriate and necessary to carry out the operations of the managed funds. In this respect, they may experience diversions of their attention from the Company and potential conflicts of interest between their work for the Company and their work for other funds and clients in the event that the interests of other clients run counter to the Company's interests (for example where one or more investment vehicle or opportunity may be attractive to multiple parties).

Star Mountain and the Advisor may form, advise and/or manage one or more other funds with a strategy similar to that of the Company. In addition, other funds managed by Star Mountain may have a different primary investment objective than the Company, but may, from time to time, invest in the same or similar asset classes that the Company targets. These investments may be made at the direction of the same individuals acting in their capacity on behalf of the Company and the managed funds. As a result, subject to the allocation restrictions (as described below), there may be conflicts in the allocation of investment opportunities between the Company and the managed funds. In addition, affiliates of Star Mountain may contract and/or otherwise conduct business with companies and partnerships in which the Company invests (directly or indirectly through funds) upon such terms and conditions as may be agreed between such affiliates and entities. Specifically, one or more affiliates of Star Mountain may negotiate to receive investment banking and other similar fees from funds and portfolio companies thereof.

Personnel or affiliates of Star Mountain or the Advisor may acquire control over, or acquire an interest in (directly or indirectly) one or more investment vehicles which are able to employ leverage in the form of bank loans or SBA loans or assistance. Should the Company invest into such an entity, the investment may have tax consequences for certain investors in the Company. The Company, with appropriate third party valuations may also sell assets material to such an affiliated entity. Should situations of the nature described above come to pass, the Board will be made aware of the material arrangements.

Star Mountain Holdings, LLC, an affiliate of the Advisor, is the owner of a FINRA member broker-dealer, and certain personnel or affiliates of Star Mountain or the Advisor are registered representatives of such broker-dealer. It is possible that such broker (and/or such persons) may provide investment banking, placement or similar services for one or more Portfolio Investments, which could create conflicts of interest. To the extent that the fees for such services are paid by the portfolio companies rather than by the Company, such fees will not reduce or otherwise offset the Management Fee payable by the Company to the Advisor.

Subject to applicable law, the Advisor may cause the Company to transfer one or more investments to one or more Affiliated SBICs. Any such transfers present potential conflicts of interest, as affiliates of the Advisor will be entitled to receive fees in connection with the management of such Affiliated SBICs.

Stockholders of the Company may have conflicting tax and other interests with respect to their investment in the Company. As a consequence, conflicts of interest may arise in connection with decisions made by the Advisor that may be more beneficial for one investor than for another investor, especially with respect to investors' individual tax situations, including with respect to the making or financing of investments.

#### Direct Investing Risks in SMBs
Investing in U.S. lower middle-market and small company mezzanine debt involves risks that range from the more general risks of fixed income investments to those specific to the characteristics of mezzanine debt. As with other debt instruments, there is a risk of issuer default but this risk is compounded by the fact that companies borrowing mezzanine debt are more apt to have a leveraged balance sheet. Additionally, the U.S. lower middle-market and small company focus means that the companies will generally be smaller, more concentrated in their business activities, have fewer capital-raising alternatives and limited management depth.

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The debt of most U.S. lower middle-market and small companies is not rated by rating agencies. However, these borrowers are widely considered to be below investment grade. In the event of default, recoveries can be low because mezzanine debt claims are often subordinate to senior debt. Lack of liquidity is also another risk factor associated with U.S. lower middle-market and small company mezzanine debt.

While U.S. lower middle market companies may have potential for rapid growth, they often involve higher risks than larger companies. U.S. lower middle market companies have more limited financial resources than larger companies and may be unable to meet their obligations under their debt obligations that the Company holds, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of the Company realizing any guarantees it may have obtained in connection with its investment. U.S. lower middle market companies also 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. Less publicly available information may be available about these companies and they may not be subject to the financial and other reporting requirements applicable to public companies. 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 company and, in turn, on the Company. U.S. lower middle market companies may also have less predictable operating results and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. They may also have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity. If these companies are private companies, there will not be as much publicly available information about these companies as there is for public companies and such information may not be of the same quality. The Company will generally focus on debt investments in SMBs. The Advisor may determine whether companies are U.S.-based or qualify as "U.S. lower middle market" in its sole discretion.

#### Second-Lien, or Other Subordinated Loans or Debt Risk
The Company may acquire and/or originate second-lien or other subordinated loans. In the event of a loss of value of the underlying assets that collateralize the loans, the subordinate portions of the loans may suffer a loss prior to the more senior portions suffering a loss. If a borrower defaults and lacks sufficient assets to satisfy the Company's loan, the Company may suffer a loss of principal or interest. If a borrower declares bankruptcy, the Company may not have full recourse to the assets of the borrower, or the assets of the borrower may not be sufficient to satisfy the loan. In addition, certain of the Company's loans may be subordinate to other debt of the borrower. As a result, if a borrower defaults on the Company's loan or on debt senior to the Company's loan, or in the event of the bankruptcy of a borrower, the Company's loan will be satisfied only after all senior debt is paid in full. The Company's ability to amend the terms of the Company's loans, assign the Company's loans, accept prepayments, exercise the Company's remedies (through "standstill periods") and control decisions made in bankruptcy proceedings relating to borrowers may be limited by intercreditor arrangements if debt senior to the Company's loans exists.

#### Unsecured Loans or Debt
The Company may invest in unsecured loans which are not secured by collateral. In the event of default on an unsecured loan, the first priority lien holder has first claim to the underlying collateral of the loan. It is possible that no collateral value would remain for an unsecured holder and therefore result in a loss of investment to the Company. Because unsecured loans are lower in priority of payment to secured loans, they are subject to the additional risk that the cash flow of the borrower may be insufficient to meet scheduled payments after giving effect to the secured obligations of the borrower. Unsecured loans generally have greater price volatility than secured loans and may be less liquid.

#### Risks Associated with Covenant-Lite Loans
A significant number of leveraged loans in the market may consist of loans that do not contain financial maintenance covenants ("Covenant-Lite Loans"). While the Company does not intend to invest in Covenant-Lite Loans as part of its principal investment strategy, it is possible that such loans may comprise a portion of the Company's portfolio. Such loans do not require the borrower to maintain debt service or other financial ratios. Ownership of Covenant-Lite Loans may expose the Company to different risks, including with respect to liquidity, price volatility, ability to restructure loans, credit risks and less protective loan documentation than is the case with loans that also contain financial maintenance covenants.

#### Sub-investment Grade and Unrated Debt Obligations Risk
The Company may invest in sub-investment grade debt obligations. Investments in the sub-investment grade categories are subject to greater risk of loss of principal and interest than higher-rated securities and may be considered to be predominantly speculative with respect to the obligor's capacity to pay interest and repay principal. They may also be considered to be subject to greater risk than securities with higher ratings in the case of deterioration of general economic conditions. Because investors generally perceive that there are greater risks associated with non-investment grade securities, the yields and prices of such securities may fluctuate more than those for higher-rated securities. The market for non-investment grade securities may be smaller and less active than that for higher- rated securities, which may adversely affect the prices at which these securities can be sold and result in losses to the Company, which, in turn, could have a material adverse effect on the performance of the Company, and, by extension, the Company's business, financial condition, results of operations and net asset value.

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In addition, the Company may invest in debt obligations which may be unrated by a recognized credit rating agency, which may be subject to greater risk of loss of principal and interest than higher-rated debt obligations or debt obligations which rank behind other outstanding securities and obligations of the obligor, all or a significant portion of which may be secured on substantially all of that obligor's assets. The Company may also invest in debt obligations which are not protected by financial covenants or limitations on additional indebtedness. In addition, evaluating credit risk for debt securities involves uncertainty because credit rating agencies throughout the world have different standards, making comparison across countries difficult. Any of these factors could have a material adverse effect on the performance of the Company, and, by extension, the Company's business, financial condition, results of operations and net asset value.

To the extent that the Company invests in sub-investment grade investments that are also stressed or distressed then the risks discussed above are heightened.

#### Equity Securities Risk
The Company may purchase common and other equity securities. Although common stock has historically generated higher average total returns than fixed income securities over the long term, common stock also has experienced significantly more volatility in those returns. The equity securities the Company acquires may fail to appreciate and may decline in value or become worthless, and the Company's ability to recover its investment will depend on a portfolio company's success. Investments in equity securities involve a number of significant risks. While there are many types of equity securities, prices of all equity securities will fluctuate. Any equity investment in a portfolio company could be subject to further dilution as a result of the issuance of additional equity interests and to serious risks as a junior security that will be subordinate to all indebtedness (including trade creditors) or other senior securities in the event that the issuer is unable to meet its obligations or becomes subject to a bankruptcy process. To the extent that the portfolio company requires additional capital and is unable to obtain it, the Company may not recover its investment. In some cases, equity securities in which the Company invests will not pay current dividends, and the Company's ability to realize a return on its investment, as well as to recover its investment, will be dependent on the success of the portfolio company.

#### Borrowing Risk
The Company may borrow from and issue senior debt securities to banks, insurance companies and other lenders or investors as part of its investment strategy. Holders of these senior securities will have fixed-dollar claims on the Company's assets that are superior to the claims of Stockholders. If the value of the Company's assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have if the Company did not employ leverage. Similarly, any decrease in the Company's income would cause net income to decline more sharply than it would have had it not borrowed. Such a decline could negatively affect the Company's ability to make Common Stock dividend payments. The Company's ability to service any debt that it incurs will depend largely on its financial performance and will be subject to prevailing economic conditions and competitive pressures. There can be no assurance that the Company will use leverage or that a leveraging strategy will be successful during any period in which it is employed.

Furthermore, any credit agreement or other debt financing agreement into which the Company may enter may impose financial and operating covenants that restrict its investment activities, the Company's ability to call capital, remedies on default and similar matters. In connection with borrowings, the Company's lenders may also require the Company to pledge assets, Stockholder commitments to fund capital calls and/or the proceeds of those capital calls, thereby allowing the lender to call for Capital Contributions upon the occurrence of an event of default under such financing arrangement. To the extent such an event of default does occur, Stockholders could therefore be required to fund any shortfall up to their remaining Capital Commitments, without regard to the underlying value of their investment.

Lastly, the Company may be unable to obtain its desired leverage, which would, in turn, affect a Stockholder's return on investment.

#### PIK Interest Payments
Certain of the Company's debt investments may contain provisions providing for the payment of payment-in-kind ("PIK") interest. Because PIK interest results in an increase in the size of the loan balance of the underlying loan, the receipt of PIK interest will have the effect of increasing the Company's assets under management. As a result, the receipt of PIK interest may result in an increase in the amount of the base Management Fee payable by the Company. In addition, any such increase in a loan balance due to the receipt of PIK interest will cause such loan to accrue interest on the higher loan balance, which will result in an increase in the Company's pre- incentive fee net investment income and, as a result, an increase in incentive fees that are payable by the Company to the Advisor. To the extent PIK interest income constitutes a portion of our income, we will be exposed to risks associated with such income being required to be included in accounting income and taxable income prior to receipt of cash, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The higher yields and interest rates on PIK securities reflects the payment deferral and increased credit risk associated with such instruments and that such investments may represent a significantly
 higher credit risk than coupon loans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PIK securities 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PIK interest has the effect of generating investment income and increasing the incentive fees payable at a compounding rate. In addition, the deferral of PIK interest also reduces the loan-to-value ratio
 at a compounding rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PIK securities create the risk that incentive fees will be paid to the Advisor based on non-cash accruals that ultimately may not be realized, but the Advisor will be under no obligation to reimburse the
 Company for these fees.

#### Prepayment Risk
The terms of loans in which the Company invests may permit the borrowers to voluntarily prepay loans at any time, either with no or a nominal prepayment premium. This prepayment right could result in the borrower repaying the principal on an obligation held by the Company earlier than expected. This may happen when there is a decline in interest rates, when the borrower's improved credit or operating or financial performance allows the refinancing of certain classes of debt with lower cost debt. The yield of the Company's investment assets may be affected by the rate of prepayments differing from the Advisor's expectations. Assuming an improvement in the credit market conditions, early repayments of the debt held by the Company could increase. To the extent early prepayments increase, they may have a material adverse effect on the Company's investment objectives and profits. In addition, if the Company is unable to reinvest the proceeds of such prepayments received in investments expected to be as profitable, the proceeds generated by the Company will decline as compared to the Advisor's expectations.

#### Collateral Risk
The collateral and security arrangements in relation to such secured obligations as the Company may invest in will be subject to such security or collateral having been correctly created and perfected and any applicable legal or regulatory requirements which may restrict the giving of collateral or security by an obligor, such as, for example, thin capitalization, over-indebtedness, financial assistance and corporate benefit requirements. If the investments do not benefit from the expected collateral or security arrangements, this may adversely affect the value of or, in the event of default, the recovery of principal or interest from such investments made by the Company. Accordingly, any such a failure to properly create or perfect collateral and security interests attaching to the investments could have a material adverse effect on the performance of the Company, and, by extension, the Company's business, financial condition, results of operations and net asset value.

#### Volatility of Loans and Debt Securities of Leveraged Companies
Leveraged companies may experience bankruptcy or similar financial distress. Many of the events within a bankruptcy case are adversarial and often beyond the control of the creditors. While creditors generally are afforded an opportunity to object to significant actions, there can be no assurance that a bankruptcy court would not approve actions that may be contrary to the Company's interests. Furthermore, there are instances where creditors can lose their ranking and priority if they are considered to have taken over management of a borrower.

The reorganization of a company can involve substantial legal, professional and administrative costs to a lender and the borrower; it is subject to unpredictable and lengthy delays; and during the process a company's competitive position may erode, key management may depart and a company may not be able to invest its capital adequately. In some cases, the debtor company may not be able to reorganize and may be required to liquidate assets. The debt of companies in financial reorganization will, in most cases, not pay current interest, may not accrue interest during reorganization and may be adversely affected by an erosion of the issuer's fundamental value.

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, the Company could become subject to a lender's liability claim, if, among other things, the borrower requests significant managerial assistance from the Company and it provides such assistance as contemplated by the 1940 Act.

Various laws enacted for the protection of creditors may apply to certain investments that are debt obligations, although the existence and applicability of such laws will vary between jurisdictions. For example, if a court were to find that an obligor did not receive fair consideration or reasonably equivalent value for incurring indebtedness evidenced by an investment and the grant of any security interest securing such investment, and, after giving effect to such indebtedness, the obligor: (i) was insolvent; (ii) was engaged in a business for which the assets remaining in such obligor constituted unreasonably small capital; or (iii) intended to incur, or believed that it would incur, debts beyond its ability to pay such debts as they mature, such court may: (a) invalidate such indebtedness and such security interest as a fraudulent conveyance; (b) subordinate such indebtedness to existing or future creditors of the obligor; or (c) recover amounts previously paid by the obligor in satisfaction of such indebtedness or proceeds of such security interest previously applied in satisfaction of such indebtedness. In addition, if an obligor in whose debt the Company has an investment becomes insolvent, any payment made on such investment may be subject to avoidance, cancellation and/or clawback as a "preference" if made within a certain period of time (which for example under some current laws may be as long as two years) before insolvency.

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In general, if payments on an investment are voidable, whether as fraudulent conveyances, extortionate transactions or preferences, such payments may be recaptured either from the initial recipient or from subsequent transferees of such payments. To the extent that any such payments are recaptured, there may be a material adverse effect on the Company's performance.

#### Counterparty Risk
To the extent that contracts for investment will be entered into between the Company and a market counterparty as principal (and not as agent), the Company is exposed to the risk that the market counterparty may, in an insolvency or similar event, be unable to meet its contractual obligations to the Company. The Company may have a limited number of potential counterparties for certain of its investments, which may significantly impair the Company's ability to reduce its exposure to counterparty risk. In addition, difficulty reaching an agreement with any single counterparty could limit or eliminate the Company's ability to execute such investments altogether. Because certain purchases, sales, hedging, financing arrangements and other instruments in which the Company will engage are not traded on an exchange but are instead traded between counterparties based on contractual relationships, the Company is subject to the risk that a counterparty will not perform its obligations under the related contracts. Although the Company intends to pursue its remedies under any such contracts, there can be no assurance that a counterparty will not default and that the Company will not sustain a loss on a transaction as a result.

#### Non-U.S. Currencies and Investments
Investing in securities of non-U.S. issuers involves certain considerations comprising both risks and opportunities not typically associated with investing in securities of U.S. issuers. These considerations include changes in exchange control regulations, political and social instability, expropriation, imposition of non-U.S. 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, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility.

Although most of the Company's investments will be U.S. dollar denominated, any investments that are denominated in a non-U.S. currency are subject to the risk that the value of a particular currency will change in relation to one or more other currencies. 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. The Company may, but is not obligated to, employ hedging techniques to minimize these risks, and there can be no assurance that any such hedging strategies, if employed, will be effective.

#### Risks of Engaging in Hedging Transactions
Subject to application of the 1940 Act and applicable CFTC regulations, the Company may enter into hedging transactions, which may expose it to risks associated with such transactions. Such hedging may utilize instruments such as forward contracts, currency options and interest rate swaps, caps, collars and floors to seek to hedge against fluctuations in the relative values of the Company's portfolio positions from changes in currency exchange rates and market interest rates. Use of these hedging instruments may include counter- party credit risk.

Hedging against a decline in the values of the Company's portfolio positions does not eliminate the possibility of fluctuations in the values of such positions 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 exchange rate or interest rate fluctuation that is so generally anticipated that the Company is not able to enter into a hedging transaction at an acceptable price.

The success of any hedging transactions the Company may enter into will depend on the Company's ability to correctly predict movements in currencies and interest rates. Therefore, while the Company may enter into such transactions to seek to reduce currency exchange rate and interest rate risks, unanticipated changes in currency exchange rates or interest rates may result in poorer overall investment performance than if the Company 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, the Company may not seek to (or be able to) establish a perfect correlation between such hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent the Company from achieving the intended hedge and expose it to risk of loss. In addition, it may not be possible to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those securities is likely to fluctuate as a result of factors not related to currency fluctuations. For the years ended December 31, 2025 and 2024 the Company has not engaged in hedging transactions.

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#### Potential Failure to Make Follow-On Investments in Portfolio Companies
Following an initial investment in a portfolio company, the Company may make additional investments in that portfolio company as "follow-on" investments, in order to:

• increase or maintain in whole or in part the Company's equity ownership percentage;

• exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or

• attempt to preserve or enhance the value of the Company's investment.

The Company may elect not to make follow-on investments or otherwise lack sufficient funds to make those investments.

The Company will have the discretion to make any follow-on investments, subject to the availability of capital resources. The failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and the Company's initial investment, or may result in a missed opportunity for the Company to increase its participation in a successful operation. Even if the Company has sufficient capital to make a desired follow-on investment, it may elect not to make a follow-on investment because it may not want to increase its concentration of risk, because it prefers other opportunities or because it is inhibited by compliance with BDC requirements, or compliance with the requirements for maintenance of its RIC status.

#### Potential Impact of Not Holding Controlling Equity Interests in Portfolio Companies
The Company does not generally intend to take controlling equity positions in the Company's portfolio companies. To the extent that the Company does not hold a controlling equity interest in a portfolio company, it will be subject to the risk that such portfolio company may make business decisions with which the Company disagrees, and the Stockholders and management of such portfolio company may take risks or otherwise act in ways that are adverse to the Company's interests. Due to the lack of liquidity for the debt and equity investments that the Company typically holds in portfolio companies, the Company may not be able to dispose of its investments in the event it disagrees with the actions of a portfolio company, and may therefore suffer a decrease in the value of its investments.

#### Defaults by Portfolio Companies
A portfolio company's failure to satisfy financial or operating covenants imposed by the Company or other lenders could lead to defaults and, potentially, acceleration of the time when the loans are due and foreclosure on the portfolio company's assets representing collateral for its obligations. This could trigger cross defaults under other agreements and jeopardize the portfolio company's ability to meet its obligations under the debt that the Company holds and the value of any equity securities the Company owns. The Company may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company.

The Company may be affected by force majeure events (*i.e.*, events beyond the control of the party claiming that the event has occurred, including, without limitation, acts of God, fire, flood, earthquakes, war, terrorism and labor strikes). Some force majeure events may adversely affect the ability of a party to perform its obligations until it is able to remedy the force majeure event. In addition, the Company's cost of repairing or replacing damaged assets resulting from such force majeure event could be considerable. Additionally, a major governmental intervention into industry, including the nationalization of an industry or the assertion of control over one or more companies or its assets, could result in a loss, including if the Company's investment in such issuer is cancelled, unwound or acquired (which could be without what the Advisor considers to be adequate compensation). To the extent the Company is exposed to investments in issuers that as a group are exposed to such force majeure events, the Company's risks and potential losses are enhanced.

#### Unspecified Use of Proceeds
The proceeds of capital called by the Company are intended to be used to make investments and pay the Company expenses. Stockholders of the Company do not expect to have an opportunity to evaluate for themselves the relevant economic, financial and other information regarding all investments by the Company. No assurance can be given that the Company may be successful in obtaining suitable investments or that, if the investments are made, the objectives of the Company may be achieved.

#### Dependence on Key Personnel
The Company depends on the continued services of its key management personnel. If the Company were to lose any of its officers or other management personnel, such a loss could result in operating inefficiencies and lost business opportunities, which could have a negative effect on the Company's operating performance.

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#### Dependence on Information Systems and Potential Systems Failures
Star Mountain is highly dependent on its communications and information systems. System failures, breaches or cyber-attacks could significantly disrupt Star Mountain's business, which could have a material adverse effect on the results of operations and cash flows of the Company and negatively affect the Company's ability to make distributions to Stockholders. System breaches in particular are evolving and include, but are not limited to, malicious software, attempts to gain unauthorized access to data, and other electronic security breaches that could result in disruptions of Star Mountain's communications and information systems, unauthorized release of confidential or proprietary information and damage or corruption of data. These events could lead to higher operating costs from remedial actions, loss of business and potential liability.

#### Impact of Evolving Privacy and Cybersecurity Regulations
The U.S. is in a period of active consideration and adoption of new privacy and cybersecurity laws, rules and regulations, which include the California Consumer Privacy Act of 2018, as amended, the Virginia Consumer Data Privacy Act, the New York SHIELD Act, additional enacted and proposed consumer privacy laws in various states, and laws, rules and regulations at the federal level, such as recent amendments to the SEC's Regulation S-P. The effect of such recently adopted laws, rules and regulations, and the active enforcement of existing privacy, cybersecurity and consumer protection laws by the Federal Trade Commission, the SEC, other federal regulators and various state attorneys general are substantial. Such effects may include an increased ability of individuals to exercise control over their personal information, more prescriptive regulatory and contractual obligations with which companies will need to comply to maintain the privacy and security of personal information and nonpublic personal information, and the potential for exposure to monetary penalties, fines and/or damages for companies that do not comply, or are alleged to have not complied, with applicable privacy, cybersecurity and data breach notification laws, rules, regulations and other legal requirements. Companies may also be subject to class action claims and other litigation claims based on alleged violations of privacy and data security laws. Star Mountain and the Company endeavor to maintain compliance with applicable privacy and cybersecurity laws, but there can be no assurance that Star Mountain or the Company will at all times be successful in doing so or that regulators and litigants will not take a different view as to what such compliance requires. Star Mountain and/or the Company may be subject to fines, monetary penalties, reputational risk and/or damages related to noncompliance or alleged noncompliance with privacy and cybersecurity laws, rules and regulations and may incur substantial expenses in relation to compliance with those laws and the cost of investigation or legal defense to defend claims of noncompliance.

#### Board Participation
The Company may have observation rights in or membership on the board of advisors of the majority of its Portfolio Investments. While such rights could enhance the Company's ability to manage its investments, they are not critical to the Company's investment philosophy and they may have the effect of impairing the ability of the Company to sell the related securities when, and upon the terms, the Company might otherwise desire, as such rights may subject the Company to legal claims it would not otherwise be subject to as an investor, including claims of breach of duty of loyalty, securities claims, and other claims related to the Company's involvement on the board. In addition, the Company, as holder of those securities, may be precluded from selling the securities, even if desired, due to the possession of its representatives of material non-public information about the company to which the securities relate.

#### Other Activities of Company Management
As noted above, the management of the Company are currently engaged, and may continue to be engaged, in other philanthropic, community and business activities, and they may be required to allocate a portion of their time to engaging in such other activities. In addition, certain team members who are aligned and engaged partners of the Advisor and also providing valuable insights and relationships to the Advisor and the Company are not full-time employees.

#### Limited Liability and Indemnification of the Advisor
Under the Advisory Agreement, the Advisor, its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Advisor, and any person controlling or controlled by the Advisor will not be liable to the Company, any subsidiary of the Company, the directors, the Stockholders or any subsidiary's Stockholders or partners for acts or omissions performed in accordance with and pursuant to the Advisory Agreement, except those resulting from acts constituting gross negligence, willful misfeasance, bad faith or reckless disregard of the duties that the Advisor owes to the Company under the Advisory Agreement. In addition, as part of the Advisory Agreement, the Company has agreed to indemnify the Advisor and each of its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Advisor, from and against any claims or liabilities, including reasonable legal fees and other expenses reasonably incurred, arising out of or in connection with the Company's business and operations or any action taken or omitted on the Company's behalf pursuant to authority granted by the Advisory Agreement, except where attributable to gross negligence, willful misfeasance, bad faith or reckless disregard of such person's duties under the Advisory Agreement. These protections may lead the Advisor to act in a riskier manner when acting on the Company's behalf than it would when acting for its own account.

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#### Third Party Litigation
The Company's investment activities subject it to the normal risks of becoming involved in litigation initiated by third parties. This risk is somewhat greater where the Company exercises control or influence over a company's direction. The expense of defending against claims by third parties and paying any amounts pursuant to settlements or judgments would, absent willful misconduct or gross negligence by the Advisor, be borne by the Company (to the extent not borne by the portfolio companies) and would reduce net assets or could require Stockholders to return to the Company distributed capital and earnings. The Advisor and others are indemnified in connection with such litigation, subject to certain conditions.

#### Projections
The Company may rely upon projections developed by the Advisor, a portfolio fund or an operating company, concerning the portfolio company's or fund's performance and potential cash flows. Projections are inherently subject to uncertainty and factors beyond the control of the Advisor or any portfolio company. The inaccuracy of certain assumptions, the failure to satisfy certain financial requirements or the occurrence of other unforeseen events could impair the ability of a portfolio company, and hence the Company, to realize projected values and cash flow.

#### Credit Investigation
The Company's overall performance is heavily reliant upon the underwriting and investment analysis and performance of the Portfolio Investments. There can be no assurance that such evaluations may be complete or that the underlying due diligence may reveal all issues. Investments may fail to meet expectations projected on the basis of such evaluations due to a number of undiscovered or unanticipated factors.

#### Timing of Investment Returns
The Company may not always be able to realize upon its investments in a manner that produces the maximum return on such investments. A fund may elect or be required to remain invested in a manner that does not maximize returns on a given investment because of the inherent unpredictability involved in evaluating the point at which such returns are maximized. SBICs cannot make distributions to Stockholders unless permitted by the SBA which could delay distributions or impair overall returns to Stockholders.

#### Failure to Fund Commitments
The Company intends to draw down against the commitments made by Stockholders. The Company's Subscription Agreement is structured to motivate Stockholders to fund their commitments when called by permitting the Advisor to: offer the investment opportunity to other Stockholders; cause the defaulting Stockholder to sell its interest in the Company; take legal action against the defaulting Stockholder; prohibit the defaulting Stockholder from participating in future Company investments; withhold distributions made, subsequent to the Stockholder's default, on the remaining interests until the final liquidation of the Company; require the Stockholder to share in any losses of the Company but not share in any profits; forfeit its shares or any combination thereof. There can be no assurance, however, that all Stockholders may fund their commitments in a timely manner. Failure by Stockholders to fund their commitments when called could result in the Company being precluded from an investment opportunity and could result in returns being less than might otherwise occur.

#### Severe Economic Consequences of Defaulting Stockholders
If Stockholders fail to fund their commitment obligations or to make required Capital Contributions when due, the Company's ability to complete its investment program or otherwise continue operations may be substantially impaired. A Stockholder's failure to fund such amounts when due causes that Stockholder to become a defaulting Stockholder. If a substantial number of Stockholders become defaulting Stockholders, this may severely limit opportunities for investment diversification and would likely reduce returns to the Company and restrict the Company's ability to meet loan obligations. 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. In the event a Stockholder fails to make a required Capital Contributions when due, it may be subject to various remedies, including, without limitation, forfeiture of its right to participate in purchasing additional shares on any future drawdown date or otherwise participate in any future investments of the Company. Without limitation on the rights the Company may have against the defaulting Stockholder, the Company may call for additional Capital Contributions from non-defaulting Stockholders to make up any shortfall. The non-defaulting Stockholders could therefore be required to fund any shortfall up to their remaining Capital Commitments, without regard to the underlying value of their investment.

If the Company fails to meet its contractual obligations related to a Portfolio Investment due to a defaulting Stockholder, the relevant portfolio company may have a cause of action against the Company, which may include a claim against assets of the Company other than the Company's interest in such portfolio company. A creditor of the Company (including a portfolio company with respect to which the Company has failed to meet its contractual obligations) will not be bound to satisfy its claims from the assets attributable to a particular Portfolio Investment and such creditor generally may seek to satisfy its claims from the assets of the Company as a whole. As a result, if a creditor's claims relating to a particular Portfolio Investment exceed the net assets attributable to that Portfolio Investment, the remaining assets of the Company will likely be subject to such claim.

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#### Changes to Government Policies and Regulations
Future regulatory changes at various securities industry regulatory bodies such as the SEC and legislative changes at Federal and state levels may impose on the Company stricter investment guidelines resulting in any or all of reduction of deal flow, increased reporting and compliance costs and investment restrictions. Such results may have a negative impact on the returns generated to Stockholders.

#### Limited Recourse
Other than as described in the Subscription Agreement, Stockholders in the Company will not have recourse to assets other than those in the Company.

#### Risk Associated with Portfolio Company Assets
The tangible assets held by the Company's portfolio companies, which may be materially encumbered if the Company makes an investment, may be subject to the risks of investment in property in general. These risks include, among others, employee misconduct, strikes, theft, fire, terrorism, war, general or local economic conditions, acts of God (which may result in uninsured or uninsurable losses), and other factors which are beyond the control of portfolio company management, the Advisor, or the Company. Should any of these events occur with respect to the assets of any portfolio company, the value of the Company's investment in such portfolio company could be adversely affected and any debt obligations secured by such assets could be accelerated if adequate insurance proceeds and/or additional collateral are unavailable.

**Public Health Emergencies, Epidemics or Pandemics, Terrorist Attacks, Acts of War, and Natural Disasters may Impact Our Portfolio Companies and Our Adviser and Harm Our Business, Operating Results and Financial Condition**

Terrorist acts, acts of war, global health emergencies or natural disasters may disrupt our operations, as well as the operations of the businesses in which we invest. Such acts have created, and continue to create, economic and political uncertainties and have contributed to global economic instability. Future terrorist activities, military or security operations, global health emergencies or natural disasters could further weaken the domestic/global economies and create additional uncertainties, which may negatively impact the businesses in which we invest directly or indirectly and, in turn, could have a material adverse impact on our business, operating results and financial condition. Losses from terrorist attacks, global health emergencies and natural disasters are generally uninsurable.

#### Political, Social and Economic Uncertainty
U.S. and non-U.S. markets could experience political uncertainty and/or change that subjects investments to heightened risks. These heightened risks could include: increased risk of default (by both government and private issuers); greater social, trade, economic and political instability (including the risk of war or terrorist activity); greater governmental involvement in the economy; greater governmental supervision and regulation of the securities markets and market participants resulting in increased expenses related to compliance; greater fluctuations in currency exchange rates; controls or restrictions on foreign investment and/or trade, capital controls and limitations on repatriation of invested capital and on the ability to exchange currencies; inability to purchase and sell investments or otherwise settle security or derivative transactions (i.e., a market freeze); unavailability of currency hedging techniques; and slower clearance.

During times of political uncertainty and/or change, global markets often become more volatile. There could also be a lower level of monitoring and regulation of markets while a country is experiencing political uncertainty and/or change, and the activities of investors in such markets and enforcement of existing regulations could become more limited. Markets experiencing political uncertainty and/or change could have substantial, and in some periods extremely high, rates of inflation for many years. Inflation and rapid fluctuations in inflation rates typically have negative effects on such countries' economies and markets. Tax laws could change materially, and any changes in tax laws could have an unpredictable effect on us, our investments and our investors. There can be no assurance that political changes will not cause us or our investors to suffer losses.

It is impossible to predict the precise nature and consequences of these events, or of any political or policy decisions and regulatory changes occasioned by emerging events or uncertainty on applicable laws or regulations that impact the Company and its Portfolio Investments. In many instances, the impact will be adverse and profound.

#### Use of Artificial Intelligence
Artificial intelligence, including machine learning and similar tools and technologies that collect, aggregate, analyze or generate data or other materials, or collectively, AI, and its current and potential future applications including in the private investment and financial industries, as well as the legal and regulatory frameworks within which AI operates, continue to rapidly evolve.

Recent technological advances in AI pose risks to the Company, the Advisor, and our Portfolio Investments. The Company and its Portfolio Investments could also be exposed to the risks of AI if third-party service providers or any counterparties, whether or not known to the Company, also use AI in their business activities. We and our portfolio companies may not be in a position to control the use of AI technology in third-party products or services.

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Use of AI could include the input of confidential information in contravention of applicable policies, contractual or other obligations or restrictions, resulting in such confidential information becoming partially accessible by other third-party AI applications and users. While the Advisor does not currently use AI to make investment recommendations, the use of AI could also exacerbate or create new and unpredictable risks to our business, the Advisor's business, and the business of our portfolio companies, including by potentially significantly disrupting the markets in which we and our portfolio companies operate or subjecting us, our portfolio companies and the Advisor to increased competition and regulation, which could materially and adversely affect business, financial condition or results of operations of us, our portfolio companies and the Advisor. In addition, the use of AI by bad actors could heighten the sophistication and effectiveness of cyber and security attacks experienced by our portfolio companies and the Advisor.

Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large amounts of data, and it is not possible or practicable to incorporate all relevant data into the model that AI technology utilizes to operate. Certain data in such models will inevitably contain a degree of inaccuracy and error—potentially materially so—and could otherwise be inadequate or flawed, which would be likely to degrade the effectiveness of AI technology. To the extent that we or our Portfolio Investments are exposed to the risks of AI use, any such inaccuracies or errors could have adverse impacts on the Company or our investments.

AI technology and its applications, including in the private investment and financial sectors, continue to develop rapidly, and it is impossible to predict the future risks that may arise from such developments.

#### Risks Related to the Company's Business and Structure

#### Regulations Governing the Company's Operation as a BDC
The Company will not generally be able to issue and sell its Common Stock at a price below its then-current net asset value per share. Pursuant to Section 23 of the 1940 Act, the Company is required to determine the net asset value of its shares within 48 hours, excluding Sundays and holidays, prior to the sale of its shares. The Company may, however, sell Common Stock, or warrants, options or rights to acquire the Company's Common Stock, at a price below the then-current net asset value per share of the Company's Common Stock if the Company's Board determines that such sale is in the Company's best interests, and if Stockholders approve such sale. In any such case, the price at which the Company's securities are to be issued and sold may not be less than a price that, in the determination of the Company's Board, closely approximates the market value of such securities (less any distributing commission or discount). If the Company raises additional funds by issuing Common Stock or senior securities convertible into, or exchangeable for, its Common Stock, then the percentage ownership of Stockholders at that time will decrease, and Stockholders may experience dilution.

#### Restricted Ability to Enter Into Transactions with Affiliates
The 1940 Act prohibits or restricts the Company's ability to engage in certain principal transactions and joint transactions with certain "close affiliates" and "remote affiliates." For example, the Company is prohibited from buying or selling any security from or to any person who owns more than 25% of its voting securities or certain of that person's affiliates (each is a "close affiliate"), or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC. The Company considers the Advisor and its affiliates, to be "close affiliates" for such purposes. The Company is prohibited under the 1940 Act from participating in certain principal transactions and joint transactions with a "remote affiliate" without the prior approval of the Independent Directors. Any person that owns, directly or indirectly, 5% or more of the Company's outstanding voting securities will be a "remote affiliate" for purposes of the 1940 Act, and the Company is generally prohibited from buying or selling any security from or to such affiliate without the prior approval of the Independent Directors.

The Company may, however, invest alongside the Advisor's investment funds, accounts and investment vehicles in certain circumstances where doing so is consistent with the Company's investment strategy as well as applicable law and SEC staff interpretations. For example, the Company may invest alongside such investment funds, accounts and investment vehicles consistent with guidance promulgated by the SEC staff to purchase interests in a single class of privately placed securities so long as certain conditions are met, including that the Advisor, acting on the Company's behalf and on behalf of such investment funds, accounts and investment vehicles, negotiates no term other than price. The Company may also invest alongside the Advisor's investment funds, accounts and investment vehicles as otherwise permissible under regulatory guidance, applicable regulations and the Advisor's allocation policy. The Company and the Advisor have received an exemptive order from the SEC permitting greater flexibility beyond what is otherwise permitted by the 1940 Act. This SEC exemptive order permits the Company to co-invest the Advisor's investment funds, accounts and investment vehicles in the Advisor's originated loan transactions under certain enumerated conditions.

The Company's allocation policy provides that allocations among the Company and investment funds, accounts and investment vehicles managed by the Advisor and its affiliates will generally be made in a manner deemed to be fair and equitable over time which does not favor one client or group of clients, taking into consideration such factors as legal, regulatory and tax considerations, availability of capital for investment by the account, liquidity concerns and such other factors as deemed under the particular circumstances to be relevant in making the investment allocation determination as determined, in the Company's case, by the Advisor as well as the terms of the Company's governing documents and those of such investment funds, accounts and investment vehicles. It is the Company's policy to base its determinations on such factors as: the amount of cash on-hand, existing commitments and reserves, if any, the Company's targeted leverage level, the Company's targeted asset mix and diversification requirements and other investment policies and restrictions set by the Board or imposed by applicable laws, rules, regulations or interpretations. The Company expects that these allocation determinations will be made similarly for investment funds, accounts and investment vehicles managed by the Advisor. However, the Company can offer no assurance that investment opportunities will be allocated to the Company fairly or equitably in the short-term or over time.

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In situations where co-investment with investment funds, accounts and investment vehicles managed by the Advisor is not permitted or appropriate, such as when there is an opportunity to invest in different securities of the same issuer or where the different investments could be expected to result in a conflict between the Company's interests and those of the Advisor's clients, subject to the limitations described in the preceding paragraph, the Advisor will need to decide which client will proceed with the investment. Moreover, except in certain limited circumstances as permitted by the 1940 Act, such as when the only term being negotiated is price, the Company will be unable to invest in any issuer in which an investment fund, account or investment vehicle managed by the Advisor has previously invested. Similar restrictions limit the Company's ability to transact business with its officers or directors or their affiliates. These restrictions will limit the scope of investment opportunities that would otherwise be available to the Company. If the Company is prohibited by applicable law from investing alongside the Advisor's investment funds, accounts and investment vehicles with respect to an investment opportunity, the Company will not participate in such investment opportunity.

#### Potential Deterrence of Takeover Attempts
The General Corporation Law of the State of Delaware, as amended (the "DGCL"), contains provisions that may discourage, delay or make more difficult a change in control of the Company or the removal of the Company's directors. The Company's Certificate of Incorporation and bylaws contain provisions that limit liability and provide for indemnification of the Company's directors and officers. These provisions and others which the Company may adopt also may have the effect of deterring hostile takeovers or delaying changes in control or management. The Company is subject to Section 203 of the DGCL, the application of which is subject to any applicable requirements of the 1940 Act. This section generally prohibits the Company from engaging in mergers and other business combinations with Stockholders that beneficially own 15% or more of the Company's voting stock, either individually or together with their affiliates, unless the Company's directors or Stockholders approve the business combination in the prescribed manner. The Board will adopt a resolution exempting from Section 203 of the DGCL any business combination between the Company and any other person, subject to prior approval of such business combination by the Board, including approval by a majority of directors who are not "interested persons." If the Board does not adopt, or adopts but later repeals such resolution exempting business combinations, or if the Board does not approve a business combination, Section 203 of the DGCL may discourage third parties from trying to acquire control of the Company and increase the difficulty of consummating such an offer.

The Company has also adopted measures that may make it difficult for a third party to obtain control, including provisions of the Certificate of Incorporation that classify the Board in three classes serving staggered three-year terms, and provisions of the Certificate of Incorporation authorizing the Board to cause the issuance of additional shares of stock and to amend the Certificate of Incorporation, without Stockholder approval, to increase or decrease the number of shares of stock that the Company has authority to issue. These provisions, as well as other provisions that have been adopted in the Certificate of Incorporation and bylaws, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of the Company's Stockholders.

#### Potential Fluctuations in the Company's Net Asset Value
The Company's net asset value may fluctuate over time and, consequently, a Stockholder may pay a different price per share at subsequent closings than some other Stockholders paid at earlier closings. The price per share of a subsequent closing may be above net asset value per share to take into account the amortization of organizational and offering expenses. Consequently, Stockholders in subsequent closings may receive a different number of shares for the same Capital Contribution that earlier Stockholders made depending on the net asset value at the relevant time.

#### Investing a Sufficient Portion of Assets in Qualifying Assets
The Company may not acquire any assets other than "qualifying assets" unless, at the time of and after giving effect to such acquisition, at least 70% of the Company's total assets are qualifying assets.

The Company believes that most of the investments that it may acquire in the future will constitute qualifying assets. However, the Company may be precluded from investing in what it believes to be attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If the Company does not invest a sufficient portion of its assets in qualifying assets, it could violate the 1940 Act provisions applicable to BDCs. As a result of such violation, specific rules under the 1940 Act could prevent the Company, for example, from making follow-on investments in existing portfolio companies (which could result in the dilution of its position) or could require the Company to dispose of investments at inappropriate times in order to come into compliance with the 1940 Act. If the Company needs to dispose of such investments quickly, it could be difficult to dispose of such investments on favorable terms. The Company may not be able to find a buyer for such investments and, even if a buyer is found, the Company may have to sell the investments at a substantial loss. Any such outcomes would have a material adverse effect on the Company's business, financial condition, results of operations and cash flows.

If the Company does not maintain its status as a BDC, it would be subject to regulation as a registered closed-end management investment company under the 1940 Act. As a registered closed-end management investment company, the Company would be subject to substantially more regulatory restrictions under the 1940 Act which would significantly decrease its operating flexibility.

#### Incurrence of Significant Costs as a Result of Being an Exchange Act Reporting Company
The Company is subject to the reporting requirements under the Exchange Act. As an Exchange Act reporting company, the Company incurs legal, accounting and other expenses, including costs associated with the periodic reporting requirements applicable to a company whose securities are registered under the Exchange Act, as well as additional corporate governance requirements, including requirements under the Sarbanes-Oxley Act of 2002 and other rules implemented by the SEC.

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The Company is required to comply with certain requirements of the Sarbanes-Oxley Act, including certification requirements of Section 404 of that statute ("Section 404"), and the Company will not be required to comply with certain other requirements until it has been subject to the reporting requirements of the Exchange Act for a specified period of time. However, under current SEC rules, the Company will be required to report on its assessment of its internal control over financial reporting pursuant to Section 404 after a transition period established by the SEC's rules.

The Company's independent registered public accounting firm will not be required to formally attest to the effectiveness of its internal control over financial reporting until the later of the year following its first annual report required to be filed with the SEC, or the date the Company is no longer an emerging growth company under the JOBS Act. If the Company is not able to implement the requirements of Section 404 in a timely manner or with adequate compliance when required, the Company's operations, financial reporting or financial results could be adversely affected. Matters impacting internal controls may cause the Company to be unable to report its financial information on a timely basis and thereby subject the Company to adverse regulatory consequences, including sanctions by the SEC or violations of applicable stock exchange listing rules, and result in a breach of the covenants under the agreements governing any of the Company's financing arrangements. There could also be a negative reaction in the financial markets due to a loss of investor confidence in the Company and the reliability of the Company's financial statements. Confidence in the reliability of the Company's financial statements could also suffer if the Company or its independent registered public accounting firm were to report a material weakness in the Company's internal controls over financial reporting.

#### Potential Changes in Investment Objectives, Operating Policies or Strategies Without Prior Notice or Stockholder Approval
The Company's Board has the authority to modify or waive certain of the Company's operating policies and strategies without prior notice (except as required by the 1940 Act) and without Stockholder approval. However, absent Stockholder approval, the Company may not change the nature of its business so as to cease to be, or withdraw its election as, a BDC. Under Delaware law, the Company also cannot be dissolved without prior Stockholder approval. The Company cannot predict the effect any changes to its current operating policies and strategies would have on its business, operating results and value of its stock. Nevertheless, the effects may adversely affect the Company's business and impact its ability to make distributions.

#### Allocation of Investment Opportunities and Related Conflicts
The Company generally is prohibited under the 1940 Act from participating in certain transactions with its affiliates without prior approval of the independent directors of the Company (the "Independent Directors") and, in some cases, the SEC. Any person that owns, directly or indirectly, 5% or more of the Company's outstanding voting securities is an affiliate of the Company for purposes of the 1940 Act, and the Company generally is prohibited from buying or selling any security from or to such affiliate, absent the prior approval of the Independent Directors. The 1940 Act also prohibits certain "joint" transactions with certain of the Company's affiliates, which could include investments in the same issuers (whether at the same or different times), without prior approval of the Independent Directors and, in some cases, the SEC. If a person acquires more than 25% of the Company's voting securities, the Company will be prohibited from buying or selling any security from or to such person or certain of that person's affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC. Similar restrictions limit the Company's ability to transact business with the Company's officers or directors or their affiliates. These prohibitions will affect the manner in which investment opportunities are allocated between the Company and other funds managed by Star Mountain or its affiliates. Most importantly, the Company generally will be prohibited from co-investing with other Star Mountain Accounts or affiliates of the Advisor in Star Mountain-originated loans and financings unless the Company co-invests in accordance with the applicable regulatory guidance or has obtained an exemptive order from the SEC permitting such co-investment activities. Accordingly, while the Advisor intends to allocate suitable opportunities among the Company and other Star Mountain Accounts or affiliates of the Advisor based on the principles described above, the prohibition on co-investing with affiliates could significantly limit the scope of investment opportunities available to the Company. In particular, the decision by Star Mountain or the Advisor to allocate an opportunity to one or more Star Mountain Accounts or to an affiliate of the Advisor, or the existence of a prior co-investment structure, might cause the Company to forgo an investment opportunity that it otherwise would have made. The Company may in certain circumstances also be required to sell, transfer or otherwise reorganize assets in which the Company has invested with Star Mountain Accounts or affiliates of the Advisor at times that the Company may not consider advantageous.

The Company and the Advisor have received an exemptive order from the SEC in order to permit the Company to co-invest with Star Mountain Accounts and other affiliates of the Advisor. Subject to the terms and conditions specified in the exemptive order, the Company will be able to co-invest alongside Star Mountain Accounts or affiliates of the Advisor.

#### Proportion of Assets that May Be Invested in Securities of a Single Issuer
The Company is classified as a non-diversified investment company within the meaning of the 1940 Act, which means that it will not be limited by the 1940 Act with respect to the proportion of the Company's assets that it may invest in securities of a single issuer, excluding limitations on investments in other investment companies. To the extent that the Company assumes large positions in the securities of a small number of issuers or industries, the Company's 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. Unfavorable performance by a small number of Portfolio Investments could adversely affect the aggregate returns realized by Stockholders. The Company expects to invest in a number of Portfolio Investments, but such number may be insufficient to afford adequate diversification against the risk that an insufficient number of Portfolio Investments in which the Company invests may yield a return.

The Company may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. In addition, the aggregate returns the Company realizes may be significantly adversely affected if a small number of investments perform poorly or if the Company needs to write down the value of any one investment. Additionally, a downturn in any particular industry in which the Company is invested could significantly affect the Company's aggregate returns.

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Because the Company may invest significant amounts of the Company's available capital in a single investment, any single loss may have a significant adverse impact on the Company's capital. While the Company will generally focus on borrowers who are U.S. SMBs, the Advisor may determine whether companies meet the foregoing criteria in its sole discretion. In addition, except as may be provided by the requirement to invest at least 70% of its assets in qualifying investments and as may be necessary to qualify as a RIC, the Company is not restricted in its ability to invest in companies of any size or in any geographical location, and may from time to time or over time invest in companies of any size or in any geographical location. The Company's performance may be adversely affected by industry or region-specific factors.

#### Risks Regarding Distributions
The Company intends to pay quarterly distributions to Stockholders out of assets legally available for distribution. The Company cannot guarantee that it will achieve investment results that will allow it to make a specified level of cash distributions or year-to-year increases in cash distributions. If the Company is unable to satisfy the asset coverage test applicable to it as a BDC, or if the Company violates certain debt financing agreements, its ability to pay distributions to Stockholders could be limited. All distributions will be paid at the discretion of the Company's Board and will depend on the Company's earnings, financial condition, maintenance of RIC status, compliance with applicable BDC regulations, compliance with debt financing agreements and such other factors as the board of directors may deem relevant from time to time. The distributions the Company pays to Stockholders in a year may exceed the Company's taxable income for that year and, accordingly, a portion of such distributions may constitute a return of capital for U.S. federal income tax purposes.

Stockholders who periodically receive the payment of a distribution from a RIC consisting of a return of capital for U.S. federal income tax purposes may be under the impression that they are receiving a distribution of RIC's net ordinary income or capital gains when they are not. Accordingly, Stockholders should read carefully any written disclosure accompanying a distribution from the Company and the information about the specific tax characteristics of the Company's distributions provided to Stockholders after the end of each calendar year, and should not assume that the source of any distribution is the Company's net ordinary income or capital gains.

#### Securities Act of 1933
The shares are not registered under the Securities Act or any state securities laws. The shares are not offered and sold in the United States without registration in reliance upon the exemption contained in section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder by the SEC for transactions not involving a public offering and upon exemptions from any applicable state securities laws. Each prospective investor in the United States must be an accredited investor (as defined in Regulation D) and is required to represent, among other customary private placement representations, that it is acquiring shares for its own account and not with a view to resale or distribution in violation of U.S. Federal or state securities laws. Further, each Stockholder must be prepared to bear the economic risk of the investment for an indefinite period, because shares are "restricted securities" (as defined in Rule 144 under the Securities Act) and can be resold only pursuant to an offering registered under the Securities Act or an exemption from such registration requirement. It is extremely unlikely that shares will ever be registered under the Securities Act.

#### Securities Exchange Act of 1934
In connection with any acquisition or beneficial ownership by the Company of more than 5% of any class of equity securities of a company registered under the Exchange Act, the Company may be required to make certain filings with the SEC. Generally, these filings require disclosure of the identity and background of the purchaser, the source and amount of funds used to acquire the securities, the purpose of the transaction, the purchaser's interest in the securities and any contracts, arrangements or undertakings regarding the securities. In certain circumstances, the Company may be required to aggregate its investment position in a given operating company with the beneficial ownership of that company's securities by or on behalf of the Advisor and its affiliates, which could require the Company, together with such other parties, to make certain disclosure filings or otherwise restrict the Company's activities with respect to such operating company's securities. In addition, if the Company becomes the beneficial owner of more than 10% of any class of equity securities of a U.S. company registered under the Exchange Act or places an officer or a director on the board of directors of such a company, the Company may be subject to certain additional reporting requirements and to liability for short-swing profits under Section 16 of the Exchange Act. The Company intends to manage its investments so as to avoid the short-swing profit liability provisions of Section 16 of the Exchange Act.

#### Compliance with Anti-Money Laundering Requirements
In response to increased regulatory concerns with respect to the sources of funds used in investments and other activities, the Company may request prospective or existing Stockholders to provide additional documentation verifying, among other things, such Stockholder's identity and source of funds used to purchase its shares. The Advisor may decline to accept a subscription if this information is not provided or on the basis of such information that is provided. Requests for documentation may be made at any time during which a Stockholder holds shares. In certain circumstances, the Advisor may be required to provide this information, or report the failure to comply with such requests, to Governmental authorities without notifying the Stockholder that the information has been provided. The Advisor will take such steps as may be necessary to comply with applicable law, regulations, orders, directives or special measures that may be required by Government regulators. Governmental authorities are continually considering expanding measures to implement broader anti-money laundering laws and, at this point, it is unclear what additional steps the Advisor may be required to take. These additional steps, however, may include, without limitation, prohibiting such Stockholder from making further contributions to the Company and depositing distributions to which such Stockholder would otherwise be entitled into an escrow account.

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#### Potential Failures in the Financial Services Industry
We, the Advisor, and our portfolio companies may maintain cash balances at financial institutions that exceed federally insured limits and may otherwise be materially affected by adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults or non-performance by financial institutions or transactional counterparties.

Our cash and our Advisor's cash is held in accounts at U.S. banking institutions that we believe are of high quality. Cash held by us, our Advisor and by our portfolio companies in non-interest-bearing and interest-bearing operating accounts may exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limits. If such banking institutions were to fail, we, our Advisor, or our portfolio companies could lose all or a portion of those amounts held in excess of such insurance limitations. In addition, actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems, which could adversely affect our, our Advisor's and our portfolio companies' business, financial condition, results of operations, or prospects.

Although we and our Advisor assess our and our portfolio companies' banking relationships as we believe necessary or appropriate, our and our portfolio companies' access to funding sources and other credit arrangements in amounts adequate to finance or capitalize our respective current and projected future business operations could be significantly impaired by factors that affect us, our Advisor or our portfolio companies, the financial institutions with which we, our Advisor or our portfolio companies have arrangements directly, or the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions or instability in the financial services industry or financial markets, or concerns or negative expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions or financial services industry companies with which we, our Advisor or our portfolio companies have financial or business relationships, but could also include factors involving financial markets or the financial services industry generally.

In addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us, our Advisor, or our portfolio companies to acquire financing on acceptable terms or at all.

---

| | |
|:---|:---|
| **Item 1B.** | **Unresolved Staff Comments** |

---

None.

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| | |
|:---|:---|
| **Item 1C.**  | **Cybersecurity** |

---

*Assessment, Identification and Management of Material Risks from Cybersecurity*

The Company has processes in place to assess, identify, and manage material risks from cybersecurity threats. The Company relies on the cybersecurity strategy and policies implemented by the Administrator, which manages the Company's day-to-day operations.

*Cybersecurity Program Overview*

The Administrator has instituted a cybersecurity program aligned to the National Institute of Standards and Technology Cybersecurity Framework and designed to identify, assess, and manage cyber risks applicable to the Company. The Administrator's cybersecurity program prioritizes detection and analysis of and response to known, anticipated or unexpected threats, effective management of security risks and resilience against cyber incidents. The Administrator's cybersecurity risk management processes include technical security controls, policy enforcement mechanisms, monitoring systems, tools and related services, which include tools and services from third-party providers, and oversight to assess, identify and manage risks from cybersecurity threats, including those applicable to the Company. The Administrator has implemented and continues to implement risk-based controls designed to prevent, detect and respond to information security threats and the Company relies on such controls.

The Administrator's cybersecurity program includes physical, administrative and technical safeguards, as well as plans and procedures designed to help the Company prevent and respond to cybersecurity threats and incidents, including threats or incidents that may impact the Company. The Administrator's cybersecurity risk management processes seek to monitor cybersecurity vulnerabilities and potential attack vectors, evaluate the potential operational and financial effects of any threat and mitigate such threats. The assessment of cybersecurity risks, including those which may be applicable to the Company, is integrated into the Administrator's overall risk management program. The Company relies on the Administrator to engage with third-party consultants and key vendors to assist it in assessing, enhancing, implementing and monitoring its cybersecurity measures and risk management processes and responding to incidents.

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The Administrator's cybersecurity risk management and awareness programs include identification and testing of vulnerabilities, phishing simulations and general cybersecurity awareness and data protection training, including for employees of our investment adviser and our administrator.

The Administrator undertakes periodic internal security reviews of its information systems and related controls applicable to the Company. The Administrator also completes external reviews of the cybersecurity program and practices applicable to the Company, which may include assessments of relevant data protection practices and targeted attack simulations.

The Administrator has developed an incident response plan that provides guidelines for responding to cybersecurity incidents. The incident response plan includes notification to the applicable members of the Administrator's cybersecurity leadership, including the Administrator's Chief Technology Officer. Incidents may also be reported to the audit committee or full board of directors of the Administrator, as well as to the Audit Committee (the "Audit Committee") of the Company's Board of Directors (the "Board") or the full Board, if appropriate.

The Company depends on and engages various third parties, including suppliers, vendors, and service providers, to operate its business. The Company relies on the expertise of risk management, legal, information technology, and compliance personnel of the Administrator when identifying and overseeing risks from cybersecurity threats associated with our use of such entities.

*Board Oversight of Cybersecurity Risks*

The Board provides strategic oversight on cybersecurity matters, including risks associated with cybersecurity threats. The Board receives periodic updates from the Company's Chief Compliance Officer ("CCO") regarding the overall state of the Administrator's cybersecurity program, information on the current threat landscape, and risks from cybersecurity threats and cybersecurity incidents impacting the Company.

*Management's Role in Cybersecurity Risk Management*

The Company's management, including the Company's CCO, and the Chief Technology Officer of the Administrator, manage the Company's cybersecurity program. The CCO of the Company oversees the Company's oversight function generally and relies on the Administrator's Chief Technology Officer to assist with assessing and managing material risks from cybersecurity threats. The Administrator's Chief Technology Officer has twenty years of experience in actively managing cybersecurity and information security programs for financial services companies with complex information systems. The CCO has been responsible for this oversight function as CCO to the Company for over two years and has worked in the financial services industry for more than seven years, during which time the CCO has gained expertise in assessing and managing risk applicable to the Company.

Management of the Company is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents impacting the Company, including through the receipt of notifications from service providers and reliance on communications with risk management, legal, information technology, and/or compliance personnel of the Administrator. For example, the Company's CCO consults with the Administrator's Chief Technology Officer on a routine basis and provides periodic updates to the Company's Board and/or senior officers regarding cybersecurity risks and cybersecurity incidents that could reasonably have a material impact on the Company.

*Material Impact of Cybersecurity Risks*

The potential impact of risks from cybersecurity threats on the Company are assessed on an ongoing basis, and how such risks could materially affect the Company's business strategy, operational results, and financial condition are regularly evaluated. During the reporting period, the Company has not identified any risks from cybersecurity threats, including as a result of previous cybersecurity incidents, that the Company believes have materially affected, or are reasonably likely to materially affect, the Company, including its business strategy, operational results, and financial condition.

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| | |
|:---|:---|
| **Item 2.** | **Properties** |

---

The Company's principal executive office is located at 140 East 45th Street, New York, NY 10017. The Company does not own any real estate. The Company believes its present facilities are adequate to meet the Company's current needs. If new or additional space is required, the Company believes that adequate facilities are available at competitive prices in the same area.

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| | |
|:---|:---|
| **Item 3.** | **Legal Proceedings** |

---

The Company is not currently subject to any material legal proceedings, nor, to the Company's knowledge, is any material legal proceeding threatened against us. From time to time, the Company may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Company's rights under loans to or other contracts with the Company's portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon the Company's financial condition or results of operations.

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| | |
|:---|:---|
| **Item 4.** | **Mine Safety Disclosures** |

---

Not applicable.

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#### PART II

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| | |
|:---|:---|
| **Item 5.**  | **Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchase of Equity Securities** |

---

Until a public offering, outstanding Common Stock will be offered and sold in transactions exempt from registration under the Securities Act under Section 4(a)(2) of the Securities Act and Regulation D thereunder. There is currently no market for the Company's Common Stock, and the Company can offer no assurances that a market for the Company's shares of Common Stock will develop in the future.

Because shares of Common Stock are being 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. The Company's common shares may not be sold, transferred, assigned, pledged or otherwise disposed of unless (i) the Company's consent is granted, and (ii) the common shares are registered under applicable securities laws or specifically exempted from registration (in which case the Stockholder may, at the Company's option, be required to provide the Company with a legal opinion, in form and substance satisfactory to us, that registration is not required). The Company's shares of Common Stock are privately placed and any transfers require the Company's prior consent. As a result, it is not expected that Stockholders will be able to take advantage of transfers under Rule 144. Accordingly, an investor must be willing to bear the economic risk of investment in the common shares until the Company is liquidated. No sale, transfer, assignment, pledge or other disposition, whether voluntary or involuntary, of the common shares may be made except by registration of the transfer on the Company's books. Each transferee will be required to execute an instrument agreeing to be bound by these restrictions and the other restrictions imposed on the common shares and to execute such other instruments or certifications as are reasonably required by the Company.

#### Holders
As of December 31, 2025 there were 507 Stockholders of the Company.

#### Valuation of Investments
Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value, subject at all times to the oversight and approval of the Company's Board. Such determination of fair values are based on, among other considerations, the input of the Advisor, the Company's Audit Committee and independent third party firm(s) engaged at the direction of the Board, and may involve subjective judgments and estimates. With respect to unquoted securities, the Advisor, together with independent valuation advisors, and subject at all times to the oversight and approval of the Company's Board, values each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors. The Company retains one or more independent providers of financial advisory services to assist the Advisor and the Board by performing certain third-party valuation services. The Company may appoint additional or different third-party valuation firms in the future.

When an external event such as a purchase transaction, public offering or subsequent equity sale occurs with respect to a fair-valued portfolio company or comparable company, the Company's Board will use the pricing indicated by the external event to corroborate and/or assist the Company in the valuation of such portfolio company. Because there are not readily available market quotations for many of the investments in its portfolio, the Company values many of its investments at fair value as determined in good faith by the Board using a documented valuation policy and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company's investments may differ significantly from the values that would have been used had readily available market quotations existed for such investments, and the differences could be material.

On a quarterly basis, with respect to investments for which market quotations are not readily available, the Advisor will undertake a multi-step valuation process each quarter, as described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities for which no such market prices are available or reliable will be preliminarily valued at such value as the Advisor may reasonably determine, which may include third-party valuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Audit Committee of the Board will then review these preliminary valuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At least once annually, the valuation for each investment that constitutes a material portion of the Company's portfolio and that does not have a readily available market quotation will be reviewed by an
 independent valuation firm; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board will then discuss valuations and determine the fair value of each investment in the Company's portfolio in good faith, based on the input of the Advisor, the respective independent valuation firms
 and the Audit Committee.

All values assigned to securities and other assets by the Board will be binding on all Company Stockholders. When pricing of the Company's shares is necessary outside of the normal quarterly process, the Advisor among other things, reviews whether, to its knowledge, significant events have occurred since the last quarterly valuation which might affect the fair value of any of the Company's portfolio securities.

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#### Distributions
The Company generally intends to make quarterly distributions to its Stockholders out of assets legally available for distribution. Quarterly distributions, if any, will be determined by the Board.

All current income and realization proceeds are retained by the Company and are available for re-investment (net of applicable withholding tax). Distributions will be made to Stockholders at such times and in such amounts as determined by the Company's Board. In addition, the Company has adopted a dividend reinvestment program ("DRP") and each Stockholder will receive dividends in the form of additional shares of the Company's Common Stock unless they notify the Company in writing at least 20 Business Days prior to the distribution date fixed by the Board for such dividend that they instead desire to receive cash. If such notice is received by the Company less than 20 Business Days prior to the relevant distribution date, then that dividend will be paid in the form of shares of Common Stock and any subsequent dividends will be paid in cash. If a Stockholder elects to receive dividends in the form of shares, dividend proceeds that otherwise would have been distributed in cash will be retained by the Company for re-investment. Stockholders who elect to receive dividends and other distributions in the form of shares of Common Stock generally are subject to the same U.S. federal tax consequences as Stockholders who elect to receive their distributions in cash; however, such reinvesting investors will not receive cash with which to pay any applicable taxes on re-invested dividends.

#### Unregistered Sales of Equity Securities
Except as previously reported by the Company on its current reports on Form 8-K, the Company did not sell any securities during the period covered by this Annual Report that were not registered under the Securities Act.

#### Issuer Purchases of Equity Securities
On December 2, 2025, the Company commenced a tender offer (the "December 2025 Tender Offer") pursuant to which the Company offered to repurchase up to 251,759.98 shares tendered prior to December 31, 2025. The Company accepted for purchase a total of 251,759.98 Shares on a pro rata basis in accordance with the terms of the December 2025 Tender Offer, at a purchase price per share equal to $23.45, the Company's NAV per share as of December 31, 2025.

The following table sets forth information regarding repurchases of the Company's common stock during the three months ended December 31, 2025.

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| | | | |
|:---|:---|:---|:---|
|  | **Total Number of** <br> **Shares Purchased** | **Average Price** <br> **per share** | **Total Number of Shares Purchased as Part** <br> **of Publicly Announced Plans or Programs** |
| **October 1, 2025 - October 31, 2025** | - | - | - |
| **November 1, 2025 - November 30, 2025** | - | - | - |
| **December 1, 2025 - December 31, 2025** | 251759.98 | 23.45 | 251759.98 |
| **Total** | 251759.98 |  | 251759.98 |

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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 following discussion should be read in conjunction with the Company's audited consolidated financial statements and related notes and other financial information appearing elsewhere in this Annual Report on Form 10-K. The following discussion and other parts of this Annual Report on Form 10-K contain forward-looking information that involves risks and uncertainties.

#### Overview:
Star Mountain Lower Middle-Market Capital Corp. is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act, as amended. In addition, for U.S. federal income tax purposes, the Company has elected to be treated and intends to continue to be treated as a RIC under the Subchapter M of the Internal Revenue Code of 1986, as amended. As such, the Company is required to comply with various regulatory requirements, such as the requirement to invest at least 70% of the Company's assets in "qualifying assets," source of income limitations, asset diversification requirements, and the requirement to distribute annually at least 90% of the Company's taxable income.

The Company's investment objectives are to generate current income and capital appreciation. The Company seeks to achieve its investment objectives by investing primarily in privately negotiated loans and equity investments to SMBs generally with annual revenues greater than $15 million and earnings before interest, taxes, depreciation and amortization of less than $50 million. Generally, these businesses are owner-operated with an average 20+ year operating history. To accomplish this, the Company makes direct investments in SMBs and makes investments in investment funds focused primarily on investing in SMBs generally not owned by large private equity firms.

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The Company seeks to provide investors with access to a diversified portfolio of credit investments generating current income distributions with equity upside. Capital protection is achieved through defensive structures with affirmative, negative and financial maintenance covenants and active portfolio management which results in generally low volatility and low correlation to public market indices. The Company aims to target diversification of assets by vintage, industry and geography through direct originations and acquisitions of loan portfolios.

The Company's investment strategy may be complemented by secondary fund investments and secondary loans, consisting of generally non-brokered purchases of limited partnership interests in lower middle-market credit-oriented funds and secondary loans. This complementary strategy may result in portfolio construction and diversification benefits.

The Company's investments are subject to a number of risks. See *"Part I. Item 1A. Risk Factors."*

#### Portfolio and Investment Activity:
For the year ended December 31, 2025, the Company invested (net of original issue discount) $14,368,059 in two new portfolio companies and $62,054,915 in twenty-one existing portfolio companies as reflected in the Consolidated Schedule of Investments. For the year ended December 31, 2024, the Company invested (net of original issue discount) $41,468,116 in four new portfolio companies and $7,250,270 in six existing portfolio companies as reflected in the Consolidated Schedule of Investments.

The Company had $69,227,926 in principal repayments for the year ended December 31, 2025, of which $69,176,774 was received in cash as of December 31, 2025 (with the remaining balance as the change in receivable from December 31, 2024). The Company had $55,141,222 in principal repayments for the year ended December 31, 2024, of which $55,868,590 was received in cash as of December 31, 2024 (with the remaining balance as the change in receivable from December 31, 2023). The Company had $15,326,502 in principal repayments for the year ended December 31, 2023, of which $15,101,932 was received in cash as of December 31, 2023 (with the remaining balance as the change in receivable from December 31, 2022).

As of December 31, 2025 and December 31, 2024, the Company's investments consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Fair Value:** | | | | |
| &nbsp;&nbsp;&nbsp; First Lien Senior Secured Loan | $300852563 | 80.20% | $304120042 | 80.50% |
| &nbsp;&nbsp;&nbsp; Second Lien Senior Secured Loan | - | - | 6034048 | 1.60 |
| &nbsp;&nbsp;&nbsp; Senior Secured Notes | - | - | 341103 | 0.10 |
| &nbsp;&nbsp;&nbsp; Senior Unsecured Notes | 3763831 | 1.00 | 3427073 | 0.90 |
| &nbsp;&nbsp;&nbsp; Preferred Equity Securities | 62479421 | 16.70 | 53603056 | 14.20 |
| &nbsp;&nbsp;&nbsp; Warrants and Other Equity Securities | 6022684 | 1.60 | 7426377 | 2.00 |
| &nbsp;&nbsp;&nbsp; Fund Investments | 1925246 | 0.50 | 2688619 | 0.70 |
| &nbsp;&nbsp;&nbsp; Total | $375043745 | 100.00% | $377640318 | 100.00% |

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The table below describes investments by industry composition based on fair value as of December 31, 2025 and December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Fair Value:** | | | | |
| Aerospace & Defense | $8756759 | 2.40% | $8103579 | 2.10% |
| Building Products | 2056098 | 0.60 | - | - |
| Chemicals | 19898602 | 5.40 | 14812499 | 3.90 |
| Commercial Services & Supplies | 14183797 | 3.80 | 3908639 | 1.00 |
| Construction & Engineering | 66511406 | 17.70 | 83705436 | 22.30 |
| Consumer Finance | 3763831 | 1.00 | 3427073 | 0.90 |
| Distributors | 7300311 | 1.90 | 13163459 | 3.50 |
| Diversified Financials | 1925246 | 0.50 | 2688619 | 0.70 |
| Diversified Telecommunication Services | 21129751 | 5.60 | 23137607 | 6.10 |
| Electrical Equipment | 877249 | 0.20 | 5729737 | 1.50 |
| Entertainment | 31388774 | 8.40 | 14317635 | 3.80 |
| Food Products | 11852852 | 3.20 | 11608503 | 3.10 |
| Healthcare Providers & Services | 39110377 | 10.40 | 41162604 | 10.90 |
| Hotels, Restaurants & Leisure | 8266981 | 2.20 | 4910952 | 1.30 |
| Household Durables | 3867034 | 1.00 | 3057209 | 0.80 |
| Household Products | 13833981 | 3.70 | 4990960 | 1.30 |
| IT Services | - | - | 12558929 | 3.30 |
| Leisure Products | 3407718 | 0.90 | 3230877 | 0.90 |
| Machinery | 3645509 | 1.00 | 4217950 | 1.10 |
| Media | 21105771 | 5.60 | 26926042 | 7.10 |
| Personal Products | 4532223 | 1.20 | 4404301 | 1.20 |
| Professional Services | 55315203 | 14.70 | 58307390 | 15.40 |
| Software | 640379 | 0.20 | 965151 | 0.30 |
| Specialty Retail | 7052922 | 1.90 | 6703118 | 1.80 |
| Trading Companies & Distributors | 14804024 | 3.90 | 11262596 | 3.00 |
| Transportation Infrastructure | 9816947 | 2.60 | 10339453 | 2.70 |
| &nbsp;&nbsp;&nbsp; Total | $375043745 | 100.00% | $377640318 | 100.00% |

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#### Portfolio Asset Quality:
The Advisor employs an investment risk rating to assign each investment an investment grade no less than quarterly. The system is intended primarily to reflect the underlying risk of a portfolio investment relative to the Company's initial cost basis in respect of such portfolio investment (i.e., at the time of origination), although it may also take into account under certain circumstances, the portfolio company's cash flow generation relative to underwriting expectations, recent business performance trends, collateral coverage and other relevant factors. When necessary, the Advisor will update its investment risk ratings, borrowing base criteria and covenant compliance reports. The investment risk rating of a particular investment should not, however, be deemed to be a guarantee of the investment's future performance.

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| | |
|:---|:---|
| Investment<br> Performance Risk Rating | Summary Description |
| Grade 1 | Investment is performing above expectations. Full return of principal, interest and dividend income is expected. |
| Grade 2 | Investment is performing in-line with expectations. Risk factors remain neutral or favorable compared with initial underwriting. All investments are given a "2" at the time of origination |
| Grade 3 | Investment is performing below expectations. Capital impairment or payment delinquency is not anticipated. The investment may also be out of compliance with certain financial covenants. |
| Grade 4 | Investment is performing below expectations. Quantitative or qualitative risks have increased materially. Delinquency of interest and / or dividend payments is anticipated. No loss of principal anticipated. |
| Grade 5 | Investment is performing substantially below expectations. It is anticipated that the Company will not recoup its initial cost basis and may realize a loss upon exit. Most or all of the debt covenants are out of compliance. Amortization, interest and / or dividend payments are substantially delinquent. |

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In the event of credit deterioration, the Advisor may form a team or engage outside advisors to preserve the value of the Company's investment, including requirement of additional equitization from the ownership group or exercising other creditor rights. For investments rated Grade 4 or Grade 5, the Advisor enhances its level of scrutiny over the monitoring of such portfolio company and will develop an action plan to address the underperformance. The Advisor's senior investment team has extensive experience managing investments through workouts, restructurings, and bankruptcies.

The following table shows the distribution of the Company's investments on the 1 to 5 investment performance risk rating scale as of December 31, 2025 and December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Investment Performance Risk Rating** | **Investments at<br> Fair Value** | **Percentage of<br> Total Investments** | **Investments at<br> Fair Value** | **Percentage of<br> Total Investments** |
| 1 | $70383783 | 18.80% | $59536590 | 15.80% |
| 2 | 170700370 | 45.50 | 216885848 | 57.40 |
| 3 | 73906574 | 19.70 | 46456529 | 12.30 |
| 4 | 51139493 | 13.60 | 50022148 | 13.20 |
| 5 | 8913525 | 2.40 | 4739203 | 1.30 |
| &nbsp;&nbsp;&nbsp; Total | $375043745 | 100.00% | $377640318 | 100.00% |

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#### Results of Operations:
The following table represents the operating results for the years ended December 31, 2025, 2024 and 2023:

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| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
| Total investment income | $39749283 | $44187596 | 47362351 |
| Total expenses | 20310060 | 24906237 | 26854649 |
| &nbsp;&nbsp;&nbsp; Net investment income before fee waivers | 19439224 | 19281359 | 20507702 |
| Management fee waiver | - | - | 633649 |
| Incentive fee waiver | - | 1283530 | 1034565 |
| &nbsp;&nbsp;&nbsp; Net investment income after fee waiver | 19439223 | 20564889 | 22175916 |
| Net realized gain (loss) on investments | 3591098<br>| 3899990 | 45283 |
| Net change in unrealized gain (loss) on investments | (11427181) | 552900 | (3449646) |
| Income tax expense | (79746) | (37907) | - |
| Benefit (provision) for taxes change in unrealized appreciation (depreciation) on investments | 2059533 | (6094196) | - |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets resulting from operations | $13582927 | $18885676 | 18771553 |

---

#### Revenues:
The Company generates revenues primarily through receipt of interest income from the Portfolio Investments the Company holds. In addition, the Company generates income from various loan origination and other fees and dividends on direct equity investments. The debt the Company invests in will typically not be rated by any rating agency, but if it were, it is likely that such debt would be rated below investment grade.

#### Investment Income:
Total investment income for the year ended December 31, 2025 totaled $39,749,283 compared to $44,187,596 for the year ended December 31, 2024, driven by declines of interest income and PIK interest income. These declines were primarily a result of lower base rates on floating-rate assets.

The composition of the Company's investment income was as follows for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
| **Non-controlled/non-affiliate investment income** | | | |
| Interest income | $31626060 | $35518530 | $42194403 |
| PIK interest income | 2567790 | 4069038 | 3099419 |
| Other income | 1276339 | 188222 | 159915 |
| Dividend income | 974596 | 839055 | 1498864 |
| **Controlled/affiliate investment income** |  |  |  |
| Interest income | 2542068 | 2896720 | 253540 |
| PIK interest income | 671752 | 469747 | 90372 |
| Other income | 90678 | - | 18027 |
| Dividend income | - | 206284 | 47811 |
| &nbsp;&nbsp;&nbsp; Total investment income | $39749283 | $44187596 | $47362351 |

---

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#### Operating Expenses:
Total operating expenses decreased to $20.4 million for 2025 from $23.7 million for 2024, primarily due to lower interest expense. Interest and other financing fees decreased to $8.1 million from $12.7 million, reflecting lower average borrowings and base rates, while incentive fees decreased to $3.4 million from $4.1 million, reflecting lower net investment income. Refer to Note 6 for a discussion of how the incentive fee is calculated. Management fees increased slightly to $4.7 million from $4.5 million, driven by higher average total gross assets. General and administrative and legal expenses increased to $1.6 million from $1.0 million, while other operating expenses remained relatively consistent.

The composition of the Company's operating expenses was as follows for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
|  Interest and other financing fees | $8073752 | $12745236 | $14194984 |
|  Management fees (Note 6) | 4707419 | 4464449 | 5183339 |
|  Incentive fees (Note 6) | 3410080 | 4097254 | 4996040 |
|  Professional fees | 2417935 | 2460268 | 1525307 |
|  General and administrative fees | 998092 | 612444 | 535638 |
|  Legal expenses | 562782 | 382836 | 328091 |
|  Director expenses | 140000 | 143750 | 91250 |
| &nbsp;&nbsp;&nbsp; Expenses | 20310060 | 24906237 | 26854649 |
| &nbsp;&nbsp;&nbsp; Management fee waiver | - | - | (633649) |
| &nbsp;&nbsp;&nbsp; Incentive fee waiver | - | (1283530) | (1034565) |
| &nbsp;&nbsp;&nbsp; Income tax expense | 79746 | 37907 | - |
| &nbsp;&nbsp;&nbsp; Total Expenses | $20389806 | $23660614 | $25186435 |

---

#### Income Taxes, Including Excise Tax:
The Company has elected to be regulated as a BDC under the 1940 Act. The Company has also elected to be treated as a RIC under Subchapter M of the Code and intends to qualify annually as a RIC. As long as the Company maintains its status as a RIC, it generally will not pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that it distributes at least annually to its Stockholders. Rather, any tax liability related to income earned by the Company represents obligations of the Company's Stockholders and will not be reflected in the consolidated financial statements of the Company.

To qualify as a RIC under Subchapter M of the Code, the Company must, among other things, meet certain source-of-income and asset diversification requirements. In addition, to qualify for RIC tax treatment, the Company must distribute to its Stockholders, for each taxable year, at least 90% of its "investment company taxable income" for that year, which is generally its ordinary income plus the excess of its realized net short-term capital gains over its realized net long-term capital losses. In order for the Company not to be subject to U.S. federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its net ordinary income (taking into account certain deferrals and elections) for the calendar year, (ii) 98.2% of its capital gains in excess of capital losses for the one-year period ending October 31 in that calendar year and (iii) any net ordinary income and capital gains in excess of capital losses for preceding years that were not distributed during such years and on which the Company paid no U.S. federal income. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% nondeductible U.S. federal excise tax on this income. For the years ended December 31, 2025 and 2024, the Company recorded $79,746 and $37,907, respectively, of net expense on the Consolidated Statements of Operations for U.S. federal excise tax. For the year ended December 31, 2023, the Company did not record a net expense on the Consolidated Statements of Operations for U.S. federal excise tax.

The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes ("ASC Topic 740"). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current period. It is the Company's policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. For the years ended December 31, 2025 and 2024, the Company recorded $4,034,663 and $6,094,196, respectively, of deferred tax liability for the unrealized appreciation of investments held in the Holding Company. The Company did not record any uncertain income tax positions for the year ended December 31, 2023 on the Consolidated Statements of Assets and Liabilities.

#### Net Increase (Decrease) in Net Assets Resulting from Operations:
For the years ended December 31, 2025, 2024 and 2023, the net increase (decrease) in net assets resulting from operations was $13,582,927, $18,885,676 and $18,771,553, respectively. Based on the weighted average shares of Common Stock outstanding for the years ended December 31, 2025, 2024 and 2023, the Company's per share net increase (decrease) in net assets resulting from operations was $1.35, $2.23 and $2.56, respectively.

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#### Net Gain (Loss):
We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the cost basis of the investment without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments within net change in unrealized gain (loss) on the Consolidated Statements of Operations.

#### Financial Condition, Liquidity and Capital Resources:
The Company will generate cash primarily from the net proceeds generated from private offerings, and from cash flows from fees, interest and dividends earned from investments and principal repayments, proceeds from sales of investments and borrowings under the Company's Secured Credit Facility. The Company's primary use of funds will be direct credit and equity investments in SMBs, payments of expenses and distributions to holders of the Company's Common Stock and, to a lesser extent, the Company may invest in limited partnership interests of funds focused on making investments in SMBs. As of December 31, 2025 and December 31, 2024, the Company had approximately $5.5 million and $4.0 million, respectively, in cash on deposit with financial institutions and $122.3 million and $122.5 million, respectively, in debt outstanding.

In accordance with the 1940 Act, the Company generally is required to meet a coverage ratio of total assets to total borrowings and other senior securities, which include all borrowings and any preferred stock that may be issued in the future, of at least 150%. If this ratio declines below 150%, the Company cannot incur additional debt and could be required to sell a portion of the Company's investments to repay some debt when it is disadvantageous to do so.

#### Capital Contributions:
For the years ended December 31, 2025, 2024 and 2023, the Company entered into subscription agreements (collectively, the "Subscription Agreements") with new investors, providing for the private placement of common shares. Under the terms of the Subscription Agreements, investors are required to fund drawdowns to purchase common shares up to the amount of their respective capital commitments on an as-needed basis with a minimum of 8 business days' prior notice. As of December 31, 2025 and December 31, 2024, the Company had received capital commitments totaling $292.9 million and $273.1 million, respectively.

The following tables summarize the issuance of shares for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
|  **For the year ended December 31, 2025** | | | |
|  April 21, 2025 | $24.52 | 357811 | $8773518 |
|  June 13, 2025 | 24.13 | 89598 | 2162000 |
|  September 26, 2025 | 23.91 | 153074 | 3660000 |
|  December 19, 2025 | 23.72 | 204258 | 4845000 |
|  |  | 804741 | $19440518 |

---

---

| | | | |
|:---|:---|:---|:---|
|  **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
|  **Stock issued in connection with dividend reinvestment plan** | | | |
|  January 31, 2025 | $24.47 | 109175 | $2671518 |
|  May 20, 2025 | 24.55 | 113516 | 2786818 |
|  August 19, 2025 | 24.44 | 110384 | 2697778 |
|  November 19, 2025 | 24.29 | 112130 | 2724069 |
|  |  | 445205 | $10880183 |
| &nbsp;&nbsp;&nbsp; Total |  | 1249946 | $30320701 |

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| | | | |
|:---|:---|:---|:---|
|  **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
|  **For the year ended December 31, 2024** | | | |
|  April 8, 2024 | $24.96 | 250250 | $6246250 |
|  June 11, 2024 | 24.79 | 562949 | 13955500 |
|  September 17, 2024 | 23.83 | 717571 | 17099715 |
|  December 19, 2024 | 24.37 | 1027031 | 25028750 |
|  |  | 2557801 | $62330215 |

---

---

| | | | |
|:---|:---|:---|:---|
|  **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
|  **Stock issued in connection with dividend reinvestment plan** | | | |
|  January 31, 2024 | $24.98 | 120133 | $3000821 |
|  May 16, 2024 | 24.95 | 113756 | 2838215 |
|  August 19, 2024 | 23.96 | 103753 | 2527833 |
|  November 19, 2024 | 24.43 | 90839 | 2178007 |
|  |  | 428481 | $10544876 |
| &nbsp;&nbsp;&nbsp; Total |  | 2986282 | $72875091 |

---

---

| | | | |
|:---|:---|:---|:---|
|  **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
|  **For the year ended December 31, 2023** | | | |
|  March 21, 2023 | $25.31 | 803600 | $20339128 |
|  May 15, 2023 | 25.30 | 343695 | 8695500 |
|  August 28, 2023 | 25.49 | 179590 | 4577750 |
|  December 8, 2023 | 25.41 | 198169 | 5035468 |
|  |  | 1525054 | $38647846 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
| **Stock issued in connection with dividend reinvestment plan** | | | |
| January 26, 2023 | $25.34 | 86086 | $2181430 |
| May 5, 2023 | 25.38 | 98060 | 2488754 |
| July 31, 2023 | 25.56 | 100593 | 2571168 |
| November 10, 2023 | 25.55 | 114935 | 2936599 |
|  |  | 399674 | $10177951 |
| &nbsp;&nbsp;&nbsp; Total |  | 1924728 | $48825797 |

---

#### Distributions:
The Board will determine the timing and amount, if any, of the Company's distributions. The Company intends to pay distributions on a quarterly basis. In order to avoid corporate-level tax on the distributed income as a RIC, the Company must distribute to Stockholders at least 90.0% of ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, on an annual basis out of the assets legally available for such distributions. In order for the Company to avoid certain excise taxes imposed on RICs, the Company currently intends to distribute, or be deemed to distribute, during each calendar year an amount at least equal to the sum of (1) 98.0% of the Company's ordinary income for the calendar year, (2) 98.2% of the Company's capital gain in excess of capital loss for the one-year period ending on October 31 of such calendar year and (3) any ordinary income and net capital gain for preceding years that were not distributed during such years and on which the Company paid no U.S. federal income tax.

The Company has adopted an "opt out" dividend reinvestment program ("DRP") for Stockholders. When a distribution is declared, Stockholders' cash distributions will automatically be reinvested (net of applicable withholding tax) in additional shares of Common Stock unless a Stockholder specifically "opts out" of the Company's DRP. Stockholders may opt out of the Company's DRP by providing notice twenty (20) business days in advance of the distribution payment date.

If a Stockholder opts out, that Stockholder will receive cash distributions. Although distributions paid in the form of additional shares of Common Stock will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, Stockholders participating in the Company's DRP will not receive any corresponding cash distributions with which to pay any such applicable taxes. If distributions paid exceed tax earnings and profits, portions of the distribution can be recorded as a return of capital.

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The following tables summarize the settlement of distributions declared and recorded for the years ended December 31, 2025, 2024 and 2023:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment/Issuance Date** | **Amount Per Share** | **Amount Paid in Cash** | **Amount Settled via**<br> **Newly Issued Shares** | **Total** |
|  **For the year ended December 31, 2025** |  |  | | | | |
|  April 1, 2025 | April 23, 2025 | May 20, 2025 | $0.57 | $2951972 | $2786818 | $5738790 |
|  July 1, 2025 | July 7, 2025 | August 19, 2025 | 0.59 | 3218985 | 2697778 | 5916763 |
|  October 1, 2025 | October 10, 2025 | November 19, 2025 | 0.58 | 3100435 | 2724069 | 5824504 |
|  December 30, 2025 | December 31, 2025 | January 30, 2026 | 0.56 | 3029328 | 2770770 | 5800098 |
| &nbsp;&nbsp;&nbsp; Total |  |  | $2.30 | $12300720 | $10979435 | $23280155 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment/Issuance Date** | **Amount Per Share** | **Amount Paid in Cash** | **Amount Settled via**<br> **Newly Issued Shares** | **Total** |
|  **For the year ended December 31, 2024** |  |  | | | | |
|  April 3, 2024 | April 3, 2024 | May 16, 2024 | $0.75 | $3061044 | $2838215 | $5899259 |
|  July 11, 2024 | July 11, 2024 | August 19, 2024 | 0.63 | 2733750 | 2527833 | 5261583 |
|  October 4, 2024 | October 4, 2024 | November 19, 2024 | 0.54 | 2592284 | 2178007 | 4770291 |
|  December 31, 2024 | December 31, 2024 | January 30, 2025 | 0.54 | 2651213 | 2671518 | 5322731 |
|  Total |  |  | $2.46 | $11038291 | $10215573 | $21253864 |

---

As of December 31, 2025, $5,800,098 of distributions declared and recorded remained payable as shown in distributions payable on the Consolidated Statements of Assets and Liabilities. As of December 31, 2025, $10,880,183 of distributions as shown in stock issued in connection with the Company's DRP on the Statements of Changes in Net Assets includes the effect of distributions payable as of December 31, 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment/Issuance Date** | **Amount Per Share** | **Amount Paid in Cash** | **Amount Settled via**<br> **Newly Issued Shares** | **Total** |
|  **For the year ended December 31, 2023** |  |  | | | | |
|  April 3, 2023 | April 3, 2023 | May 5, 2023 | $0.69 | $2485103 | $2488754 | $4973857 |
|  July 3, 2023 | July 3, 2023 | July 31, 2023 | 0.69 | 2583154 | 2571168 | 5154322 |
|  October 4, 2023 | October 4, 2023 | November 10, 2023 | 0.78 | 2962903 | 2936599 | 5899502 |
|  December 29, 2023 | December 31, 2023 | January 31, 2024 | 0.79 | 3008410 | 3064701 | 6073111 |
|  Total |  |  | $2.95 | $11039570 | $11061222 | $22100792 |

---

#### Contractual Obligations:

#### Investment Advisory Agreement; Administration Agreement
The Company's investment activities are managed by Star Mountain Fund Management, LLC and supervised by the Board, a majority of whom are independent. Under the Investment Advisory Agreement, the Company pays Star Mountain Fund Management, LLC a quarterly management fee based on the Company's average gross assets (excluding cash or cash equivalents but including assets purchased with borrowed amounts) as of the end of each of the two most recently completed calendar quarters as well as incentive fees based on the Company's performance.

The Advisor shall pay (a) the respective compensation and expenses of the officers and employees of the Advisor, including salaries and benefits of the officers and employees of the Advisor, except as otherwise specified and (b) expenses associated with office space and facilities, utilities and telephone services, news, quotation and similar information and pricing services, computer equipment, travel expenses and support of the Advisor incurred in connection with Company operations.

The Company's original investment advisory agreement (the "Original Investment Advisory Agreement") was initially approved by the Board at a meeting of the Board called, in part, for such purpose, on February 24, 2021. On June 14, 2023, the Company and the Advisor entered into the Amended and Restated Investment Advisory Agreement (the "Investment Advisory Agreement") pursuant to which the Management Fee (as defined in the Investment Advisory Agreement) was reduced from 1.75% to 1.25% per annum of the average of the Company's total gross assets (excluding cash or cash equivalents but including assets purchased with borrowed amounts). The Income Incentive Fee (as defined in the Investment Advisory Agreement) was reduced from 20.0% to 17.5% of the Company's Pre-Incentive Fee Net Investment Income (as defined in the Investment Advisory Agreement). The Capital Gains Incentive Fee (as defined in the Investment Advisory Agreement) was reduced from 20.0% to 17.5% of cumulative realized capital gains. The Advisor indicated to the Board of Directors of the Company that this change was proposed to better position the Company to capitalize on the current market dynamics which it believes are compelling for its market strategy, and that there would be no reduction in services provided to the Company in connection with the fee reduction. No other material changes were made to the Original Investment Advisory Agreement. The Board, including a majority of the directors that are not "interested persons" as defined in Section 2(a)(19) of the 1940 Act, most recently approved the renewal of the Advisory Agreement on November 13, 2024.

Payments for investment advisory services under the Investment Advisory Agreement in future periods are equal to (a) a management fee calculated at an annual rate of 1.25% of the value of the Company's gross assets and (b) an incentive fee based on the Company's performance.

The Company has entered into an Administration Agreement with Star Mountain Fund Management, LLC to serve as Administrator for the Company. Pursuant to the Administration Agreement, Star Mountain Fund Management, LLC provides the Company with services such as accounting, financial reporting, legal and compliance support and investor relations support, necessary for the Company to operate or engage a third-party firm to perform some or all of these functions. The Company has entered into a sub-administration agreement with SS&C Technologies, Inc. (the "Sub-Administrator"), under which the Sub-Administrator provides various accounting and administrative services to the Company.

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See "Note 6. Transactions with Related Parties" to our Consolidated Financial Statements for additional information regarding the Advisory Agreement, the Administration Agreement, and the fee arrangements thereunder.

#### Credit Agreements
On July 2, 2021, the Company entered into a Loan and Servicing Agreement (the "Loan Agreement") with Sterling National Bank ("SNB"), which provides for a $55 million senior secured revolving credit facility ("Secured Credit Facility"). In February 2022, SNB was subsequently acquired by Webster Bank ("Webster"), which took over the relationship with the Company. On January 12, 2022, the Company entered into a second amendment to the Secured Credit Facility to upsize the Secured Credit Facility to $80 million. On May 6, 2022, the Company entered into an amendment to the Secured Credit Facility to upsize the Secured Credit Facility to $125 million. On September 16, 2022, the Company entered into an amendment to the Secured Credit Facility to upsize the Secured Credit Facility to $200 million. On May 9, 2024, the Company entered into an amendment to the Secured Credit Facility to reassign commitment amounts and negotiate Secured Credit Facility fees.

On June 27, 2025, the Company entered into an amendment to the Secured Credit Facility to reduce the Applicable Spread to 2.30%, plus following the occurrence and during the continuation of an Event of Default, 2.00%. The maturity date of the facility is June 30, 2028.

As of December 31, 2025 and December 31, 2024, the Secured Credit Facility commitment amounts were as follows:

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| | | |
|:---|:---|:---|
|  **Secured Credit Facility Lender** | **As of December 31, 2025**<br> **Commitment** | **As of December 31, 2024**<br> **Commitment** |
|  Webster Bank | $67500000 | $67500000 |
|  Dime Community Bank | 25000000 | 25000000 |
|  First Foundation Bank | 20000000 | 20000000 |
|  Mitsubishi HC Capital America, Inc. | 20000000 | 20000000 |
|  Woodforest National Bank | 20000000 | 20000000 |
|  Peapack-Gladstone Bank | 17000000 | 17000000 |
|  Hanmi Bank | 15500000 | 15500000 |
|  Apple Bank | 15000000 | 15000000 |
| &nbsp;&nbsp;&nbsp; Total Commitment | $200000000 | $200000000 |

---

Borrowings can be increased to a maximum of $350 million in accordance with the Secured Credit Facility accordion feature terms and conditions and are limited by various advance rates and concentration limits.

As of December 31, 2025 and December 31, 2024, the total fair value of the borrowings outstanding under the Secured Credit Facility was $122,300,000 and $122,500,000, respectively.

Inclusive of syndication, agency, and administrative fees paid to Webster, the total annualized cost of capital is estimated to be 6.9%. The Company will also pay a non-utilization fee on the average daily unused amount of the aggregate commitments until the commitment termination date (as defined in the Loan Agreement). As of December 31, 2025, the total commitments under the Secured Credit Facility were $200 million. Proceeds from borrowings under the Secured Credit Facility may be used to finance certain investments, fulfill payment obligations under the Secured Credit Facility, make distributions/payments permitted by the Loan Agreement. All amounts outstanding under the Secured Credit Facility must be repaid by the fourth anniversary of the initial closing of the Secured Credit Facility. The Company's obligations to the lenders under the Secured Credit Facility are secured by a first priority security interest in substantially all of the Company's assets, subject to certain exclusions.

Borrowings under the Secured Credit Facility are limited by various advance rates and concentration limits. In connection with the Secured Credit Facility, the Company has made certain customary representations/warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. The Secured Credit Facility is subject to customary events of default for similar financing transactions. Upon the occurrence and during the continuation of an event of default, Webster may declare the outstanding advances and all other obligations under the Secured Credit Facility immediately due and payable.

On June 22, 2022 the Company entered into a Loan and Security Agreement with East West Bank, which provides for cash or credit advances of up to $25 million (the "Revolving Credit Line") pursuant to the terms and conditions of the Revolving Credit Line. On September 26, 2022, the Company entered into an amendment with East West Bank, to downsize the Revolving Credit Line to $21 million. On May 17, 2023, the Company repaid the outstanding balance in full and terminated the loan and security agreement initially entered into on June 22, 2022.

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The fair value of the borrowings outstanding under the Secured Credit Facility is based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model. The components of the Company's interest expense and other debt financing expenses, average outstanding balances and average stated interest rates (i.e. the rate in effect plus spread) were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
|  Interest expense - Secured Credit Facility | $7983145 | $11099472 | $12108069 |
|  Interest expense - Revolving Credit Facility | - | - | 38624 |
|  Unused commitment fees | 429556 | 322139 | 278783 |
|  Amortization of deferred financing costs | 620769 | 593706 | 627611 |
|  Utilization fees | (959718) | 729919 | 1141897 |
| &nbsp;&nbsp;&nbsp; Total interest and other debt financing expenses | $8073752 | $12745236 | $14194984 |
|  Average debt outstanding | $115265616 | $136628415 | $154152055 |
|  Average stated interest rate | 6.93% | 8.10% | 7.88% |

---

The unused fees payable and interest expense payable as of December 31, 2025 and December 31, 2024 are included in the credit facility interest payable on the Consolidated Statements of Assets and Liabilities. The utilization fees payable as of December 31, 2025 and December 31, 2024 are included in other payables on the Consolidated Statements of Assets and Liabilities.

See "Note 7. Borrowings" to our Consolidated Financial Statements for additional information regarding the credit agreements and the fee arrangement thereunder.

#### Off-Balance Sheet Arrangements:
The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources of the Company.

#### Critical Accounting Policies:
This discussion of the Company's operating plans is based upon the Company's consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the U.S., or GAAP. The preparation of these consolidated financial statements will require the Advisor 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. In addition to the discussion below, the Company's critical accounting policies, including revenue recognition and taxes, have been described in Item 1. Note 2. Summary of Significant Accounting Policies.

#### Valuation of Portfolio Investments:
Investments for which market quotations are readily available are typically valued at those market quotations. To validate market quotations, the Company utilizes a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued quarterly at fair value as determined in good faith by the Board, based on, among other considerations, the input of the Advisor, the Company's Audit Committee and an independent third-party valuation firm, engaged at the direction of the Board.

The Board oversees a multi-step valuation process, which includes, among other procedures, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the quarterly valuation process commences with each portfolio company or investment being initially evaluated by the investment professionals of the Advisor responsible for the monitoring of the portfolio investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Advisor's Valuation Committee reviews the valuations provided by the independent third-party valuation firms and develops a valuation recommendation. Valuation recommendations are presented to the audit committee of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the audit committee of the Board reviews valuation recommendations of the Advisor incorporating any adjustments or further supplements by the Advisor to the valuations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Board discusses these valuations and determines the fair value of each investment in the portfolio in good faith, based on the input of the Advisor, the independent valuation firm, and the audit committee.

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The Company applies Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurement ("ASC Topic 820"), as amended, which establishes a framework for measuring fair value in accordance with U.S. GAAP and required disclosures of fair value measurements. ASC Topic 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance with ASC Topic 820, the Company considers its principal market to be the market that has the greatest volume and level of activity. ASC Topic 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in determination of fair value.

The three-tier hierarchy of inputs is summarized below.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 - Pricing inputs are observable inputs including, but not limited to, prices quoted for similar assets or liabilities in active markets/exchanges or prices quoted for identical or similar assets or liabilities in markets that
 are not active, and fair value is determined through the use of models or other valuation methodologies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 - Pricing inputs are unobservable for the investment and include activities where there is little, if any, market activity for the investment. The inputs into determination of fair value require significant management
 judgment and estimation.

The use of these valuation models requires significant estimation and judgment by the Advisor. The Advisor uses a third-party valuation firm to ensure fair values are determined on an independent basis. While the Company believes its valuation methods are appropriate, other market participants may value identical assets differently than the Company at the measurement date. The methods used by the Company may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. The Company may also have risk associated with its concentration of investments in certain geographic regions and industries.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for securities categorized in Level 3.

The determination of what constitutes ("observable") requires significant judgment by the Company. The Company considers observable data to be market data, which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, which may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. The categorization of an investment within the hierarchy is based upon the pricing transparency of the investment and observability of prices and inputs may be reduced for many investments. This condition could cause the investment to be reclassified to a lower level within the fair value hierarchy.

The Board, with the assistance of the Advisor, the Company's Audit Committee, and an independent third-party valuation firm engaged at the direction of the Board, will determine the fair value of the Company's assets, including such assets that are not publicly traded or whose market prices are not readily available, on at least a quarterly basis, in accordance with the terms of ASC Topic 820, Fair Value Measurement and Disclosures. The Audit Committee is comprised of the Independent Directors.

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| | |
|:---|:---|
| **Item 7A.**  | **Quantitative and Qualitative Disclosures About Market Risk** |

---

The Company is subject to financial market risks, including changes in interest rates. The Company invests primarily in illiquid debt securities of private companies. Most of the Company's investments do not have a readily available market price, and the Company values these investments at fair value as determined in good faith by the Board, based on, among other considerations, the input of the Advisor, the Company's audit committee and an independent third-party valuation firm, engaged at the direction of the Board in accordance with the Company's valuation policy. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each Portfolio Investment while employing a consistently applied valuation process for the types of investments the Company makes.

The majority of the loans in the Company's portfolio have floating interest rates, and we expect that the Company's loans in the future may also have floating interest rates. These loans are usually based on a floating benchmark rate (e.g., 3-month SOFR) plus a spread and typically have interest rate re-set provisions that adjust applicable interest rates under such loans to current market rates on a monthly or quarterly basis. The majority of the loans in the Company's current portfolio have interest rate floors which will effectively convert the loans to fixed rate loans for certain periods of time during which the floating rate benchmark is less than such interest rate floor.

All of the Company's relevant credit agreements have transitioned to Secured Overnight Financing Rate ("SOFR") as of December 31, 2023.

In addition, the transition from LIBOR to SOFR, Sterling Overnight Index Average ("SONIA") and the adoption of these or other alternative reference rates may also introduce operational risks in our accounting, financial reporting, loan servicing, liability management and other aspects of our business.

A reduction in the interest rates on new investments relative to interest rates on current investments could also have an adverse impact on the Company's net interest income. An increase in interest rates could decrease the value of any investments the Company holds which earn fixed interest rates, including subordinated loans, senior and junior secured and unsecured debt securities and loans and high yield bonds, and also could increase the Company's interest expense, thereby decreasing its net income. Also, an increase in interest rates available to investors could make investment in the Company less attractive if the Company is not able to increase its dividend or distribution rate, which could reduce the value of an investment in the Company.

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Investors 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 the Company may receive on many of its debt investments. Accordingly, a change in the interest rate could make it easier for the Company to meet or exceed the performance threshold and may result in a substantial increase in the amount of incentive fees payable to the Advisor with respect to the portion of the incentive fee based on income.

Assuming that the Consolidated Statements of Assets and Liabilities as of December 31, 2025 was to remain constant and that we took no actions to alter the Company's existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates:

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| | | | |
|:---|:---|:---|:---|
|  **Change in Interest Rates** | **Increase (decrease) in**<br> **interest income** | **Increase (decrease) in**<br> **interest expense** | **Net increase (decrease) in**<br> **net investment income** |
|  Down 100 basis points | $(2797486) | $(1223000) | $(1574486) |
|  Down 50 basis points | (1418019) | (611500) | (806519) |
|  Down 25 basis points | (709010) | (305750) | (403260) |
|  Up 25 basis points | 709010 | 305750 | 403260 |
|  Up 50 basis points | 1429464 | 611500 | 817964 |
|  Up 100 basis points | 2885215 | 1223000 | 1662215 |
|  Up 200 basis points | 5796717 | 2446000 | 3350717 |
|  Up 300 basis points | 8708218 | 3669000 | 5039218 |

---

Although we believe that this analysis is indicative of the Company's existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in the Company's portfolio and other business developments, including borrowing under the credit facility or other borrowings that could affect net increase in net assets resulting from operations, or net income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above.

**Item 8.** **Consolidated Financial Statements and Supplementary Data**<br>

Our consolidated financial statements are annexed to this Annual Report beginning on page F-1.

**Item 9.** **Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**<br>

There are no and have not been any disagreements between the Company and its accountant on any matter of accounting principles, practices, or financial statement disclosure.

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| | |
|:---|:---|
| **Item 9A.** | **Controls and Procedures** |

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#### Evaluation of Disclosure Controls and Procedures
The Company's disclosure controls and procedures are designed to provide reasonable assurances that information required to be disclosed in this Annual Report on Form 10-K and other reports that we file under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the required 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, to allow timely decisions regarding required disclosures.

The Company's management, including our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the evaluation of these disclosure controls and procedures, the Company's management, including our Chief Executive Officer and Chief Financial Officer, concluded that the Company's disclosure controls and procedures were effective as of December 31, 2025. It should be noted that any system of controls, regardless of design and execution, can provide only reasonable assurance of achieving the desired control objectives.

#### Management's Report on Internal Control over Financial Reporting
The Company's management, including the Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting and for the assessment of the effectiveness of internal control over financial reporting. As defined by the SEC, internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U.S. GAAP.

The Company's internal control over financial reporting is supported by written policies and procedures, that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company's assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Company's management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the consolidated financial statements.

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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. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management of the Company (with participation of the Chief Executive Officer and Chief Financial Officer) conducted an assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2025 based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the "COSO Framework"). Based on this assessment, management has concluded that the Company's internal control over financial reporting was effective as of December 31, 2025.

#### Attestation Report of the Registered Public Accounting Firm
This annual report on Form 10-K does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. We were not required to have, nor have we, engaged our independent registered public accounting firm to perform an audit of the Company's internal control over financial reporting as of December 31, 2025 pursuant to the rules of the SEC that permit us to provide only management's report in this annual report on Form 10-K.

#### Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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| | |
|:---|:---|
| **Item 9B.** | **Other Information** |

---

During the fiscal quarter ended December 31, 2025, none of the Directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement".

On February 25, 2026, the Company's Board held a meeting in which the Board, including a majority of the Independent Directors, approved certain matters related to the Company's ability to issue and sell Class D shares, Class S shares, Class I shares and Class SP shares pursuant to the Multi-Class Order. Effective March 31, 2026, the Company entered into a distribution and servicing plan in compliance with Rule 12b-1 under the 1940 Act, a multiple class plan in compliance with Rule 18f-3 under the 1940 Act and an expense waiver agreement between the Company and the Advisor, whereby the Advisor agreed to reimburse a portion of Class SP's expenses (excluding management fees, acquired fund fees and expenses, taxes and custody fees) equal to 0.25% of Class SP's average quarterly net assets, on an annualized basis (the "Expense Waiver Agreement"). The Advisor may not recoup expenses reimbursed pursuant to the Expense Waiver Agreement for Class SP's other expenses.

Pursuant to a capital drawdown notice to its investors, the Company issued and sold 49,190.803 shares of the Company's Common Stock, on March 26, 2026, for an aggregate offering price of $1,155,000.

The sales of Common Stock were made pursuant to subscription agreements entered into by the Company and its investors. Under the terms of the subscription agreements, investors are required to fund drawdowns to purchase shares of Common Stock up to the amount of their respective capital commitments on an as-needed basis with a minimum of eight business days' prior notice to the funding date.

Each of the sales of Common Stock is exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder. The Company has not engaged in general solicitation or advertising with regard to the issuance and sale of the Common Stock and has not offered securities to the public in connection with such issuance and sale. The Company relied, in part, upon representations from the investors in the subscription agreements that each investor was an accredited investor as defined in Regulation D under the Securities Act.

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| | |
|:---|:---|
| **Item 9C.** | **Disclosure Regarding Foreign Jurisdictions that Prevent Inspections** |

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Not Applicable

#### PART III

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| | |
|:---|:---|
|  **Item 10.** | **Directors, Executive Officers and Corporate Governance** |

---

The Company and the Advisor have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act and Rule 204A-1 under the Advisers Act, respectively, that establishes procedures for personal investments and restricts certain personal securities transactions. Personnel subject to each 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.

A copy of our Code of Ethics is filed as an exhibit to this Annual Report on Form 10-K and is available without charge upon written request to the Company, Star Mountain Lower Middle-Market Capital Corp., 140 E. 45th Street, New York, NY 10017.

The Company has adopted an Insider Trading Policy applicable to any directors, officers, or employees of the Company, the Advisor, or of any of their affiliates or subsidiaries, that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations. A copy of the Insider Trading Policy has been filed as an exhibit to this Annual Report on Form 10-K.

Except as set forth above, the information required by this Item with respect to our directors, executive officers and corporate governance matters is incorporated by reference from our definitive Proxy Statement for our 2026 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. We expect to file our definitive Proxy Statement with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2025.

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**Item 11.** **Executive Compensation**<br>

The information required by this Item with respect to compensation of executive officers and directors is incorporated by reference from our definitive Proxy Statement for our 2026 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. We expect to file our definitive Proxy Statement with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2025.

The Company did not grant awards of stock options, stock appreciation rights or similar option-like instruments during the fiscal year ended December 31, 2025. Accordingly, we have nothing to report under Item 402(x) of Regulation S-K.

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| | |
|:---|:---|
|  **Item 12.** | **Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters** |

---

The information required by this Item with respect to security ownership of certain beneficial owners and management is incorporated by reference from our definitive Proxy Statement for our 2026 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. We expect to file our definitive Proxy Statement with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2025.

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| | |
|:---|:---|
|  **Item 13.** | **Certain Relationships and Related Transactions, and Director Independence.** |

---

The information required by this Item with respect to certain relationships and related transactions and director independence is incorporated by reference from our definitive Proxy Statement for our 2026 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. We expect to file our definitive Proxy Statement with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2025.

**Item 14.** **Principal Accountant Fees and Services**<br>

The information required by this Item with respect to principal accountant fees and services is incorporated by reference from our definitive Proxy Statement for our 2026 Annual Meeting of Stockholders, to be filed with the SEC pursuant to Regulation 14A under the Exchange Act. We expect to file our definitive Proxy Statement with the SEC within 120 days after the date of our fiscal year-end, which was December 31, 2025.

#### PART IV
**Item 15.** **Exhibits and Financial Statement Schedules**<br>

The following exhibits are included, or incorporated by reference, in this Annual Report on Form 10-K for the year ended December 31, 2025 (and are numbered in accordance with Item 601 of Regulation S-K).

#### Exhibit Index

---

| | |
|:---|:---|
| [3.1](https://www.sec.gov/Archives/edgar/data/1786835/000114036121016448/brhc10024249_ex3-1.htm) | Certificate of Incorporation (1) |
| [3.1.1](https://www.sec.gov/Archives/edgar/data/1786835/000114036121016448/brhc10024249_ex10-4.htm) | Certificate of Conversion to a Corporation (2) |
| [3.2](https://www.sec.gov/Archives/edgar/data/1786835/000114036121016448/brhc10024249_ex3-2.htm) | Bylaws (3) |
| [4.1](ef20060634_ex4-1.htm) | Description of Securities \* |
| [4.2](https://www.sec.gov/Archives/edgar/data/1786835/000114036121016448/brhc10024249_ex10-3.htm) | Form of Subscription Agreement \* |
| [10.1](https://www.sec.gov/Archives/edgar/data/1786835/000114036123030227/brhc20054528_ex10-1.htm) | Amended and Restated Investment Advisory Agreement by and between Star Mountain Lower Middle-Market Capital Corp. and Star Mountain Fund Management, LLC, dated June 14, 2023. (6) |
| [10.2](https://www.sec.gov/Archives/edgar/data/1786835/000114036121016448/brhc10024249_ex10-2.htm) | Administration Agreement between Star Mountain Credit Opportunities Fund, LP, and Star Mountain Fund Management LLC (7) |
| [10.3](https://www.sec.gov/Archives/edgar/data/1786835/000114036121024447/brhc10026887_ex10-1.htm) | Loan and Servicing Agreement, dated as of July 2, 2021, by and among Star Mountain Lower Middle-Market Capital Corp., as borrower, the lenders party thereto and Sterling National Bank, in its capacities as collateral agent and administrative agent (8) |
| [10.4](https://www.sec.gov/Archives/edgar/data/1786835/000114036121037608/brhc10030754_ex10-1.htm) | First Amendment to Revolving Credit Agreement, dated as of November 10, 2021, by and among the Company, as Borrower, and Sterling National Bank, as Administrative Agent and the Letter of Credit Issuer, and the Lenders party thereto. (9) |
| [10.5](https://www.sec.gov/Archives/edgar/data/1786835/000094562122000021/exhibit101.htm) | Second Amendment to Revolving Credit Agreement, dated as of January 12, 2022, by and among the Company, as Borrower, and Sterling National Bank, as Administrative Agent and the Letter of Credit Issuer, and the Lenders party thereto. (10) |

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| | |
|:---|:---|
| [10.6](https://www.sec.gov/Archives/edgar/data/1786835/000114036122018783/brhc10037522_ex10-1.htm) | Amendment to Loan and Servicing Agreement and Joinder Agreement, dated as of May 6, 2022, by and among the Company, as Borrower, and Webster Bank, N.A. (f/k/a Sterling National Bank), as Administrative Agent and the Letter of Credit Issuer, and the Lenders party thereto (11) |
| [10.7](https://www.sec.gov/Archives/edgar/data/1786835/000114036122023901/brhc10039046_ex10-1.htm) | Loan and Security Agreement, dated as of June 22, 2022, by and among the Company, as Borrower, and East West Bank, as Lender (12) |
| [10.8](https://www.sec.gov/Archives/edgar/data/1786835/000114036122034043/brhc10042059_ex10-1.htm) | Second Amendment to Loan and Servicing Agreement, dated as of September 16, 2022, by and among the Company, as Borrower, and Webster Bank, N.A. (f/k/a Sterling National Bank), as Collateral Agent, Administrative Agent, Swing Lender, and Sole Lead Arranger, and the Lenders party thereto (13) |
| [10.9](https://www.sec.gov/Archives/edgar/data/1786835/000114036124026065/ef20026310_ex10-9.htm) | Fourth Amendment to Loan and Servicing Agreement, dated as of May 9, 2024, by and among the Company, as Borrower, and Webster Bank, N.A. (f/k/a Sterling National Bank), as Collateral Agent, Administrative Agent, Swing Lender, and Sole Lead Arranger, and the Lenders party thereto (14) |
| [10.10](https://www.sec.gov/Archives/edgar/data/1786835/000114036125024332/ef20051404_ex10-1.htm) | Fifth Amendment to Loan and Servicing Agreement, dated as of July 2, 2021, between the Company, as Borrower, Webster Bank, N.A. (f/k/a Sterling National Bank), as Agent, and the Lenders party thereto. (15) |
| [10.11](https://www.sec.gov/Archives/edgar/data/1786835/000114036126000721/ef20062497_ex10-1.htm) | Note Purchase Agreement, dated January 2, 2026, between the Company and the purchasers party thereto (16) |
| [10.12](ef20060634_ex10-12.htm) | Star Mountain Lower Middle-Market Capital Corp. Multiple Class Plan\* |
| [10.13](ef20060634_ex10-13.htm) | Star Mountain Lower Middle-Market Capital Corp. Distribution and Servicing Plan\* |
| [10.14](ef20060634_ex10-14.htm) | Star Mountain Lower Middle-Market Capital Corp. Class SP Shares Expense Support Agreement\* |
| [14.1](https://www.sec.gov/Archives/edgar/data/1786835/000114036125011279/ef20039032_ex14-1.htm) | Code of Ethics (17)<br>|
| [19.1](https://www.sec.gov/Archives/edgar/data/1786835/000114036125011279/ef20039032_ex14-1.htm) | Insider Trading Policy (18) |
| [21.1](ef20060634_ex21-1.htm) | List of Subsidiaries \* |
| [31.1](ef20060634_ex31-1.htm) | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 \* |
| [31.2](ef20060634_ex31-2.htm) | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 \* |
| [32.1](ef20060634_ex32-1.htm) | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 \*\* |
| [32.2](ef20060634_ex32-2.htm) | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 \*\* |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Date File because XBRL tags are embedded within the Inline XBRL document\* |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document\* |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document\* |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document\* |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document\* |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document\* |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document)\* |
| (1) | Previously filed as Exhibit 3.1 to the Company's Registration Statement on Form 10 (File No. 000-56259), filed with the SEC on May 7, 2021. |
| (2) | Previously filed as Exhibit 10.4 to the Company's Registration Statement on Form 10 (File No. 000-56259), filed with the SEC on May 7, 2021. |
| (3) | Previously filed as Exhibit 3.2 to the Company's Registration Statement on Form 10 (File No. 000-56259), filed with the SEC on May 7, 2021. |
| (4) | Previously filed as Exhibit 10.3 to the Company's Registration Statement on Form 10 (File No. 000-56259), filed with the SEC on May 7, 2021. |
| (5) | Previously filed as Exhibit 10.1 to the Company's Registration Statement on Form 10 (File No. 000-56259), filed with the SEC on May 7, 2021. |
| (6) | Previously filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on June 16, 2023. |
| (7) | Previously filed as Exhibit 10.2 to the Company's Registration Statement on Form 10 (File No. 000-56259), filed with the SEC on May 7, 2021. |
| (8) | Previously filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on July 15, 2021. |
| (9) | Previously filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on November 12, 2021. |
| (10) | Previously filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on January 14, 2022. |
| (11) | Previously filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on May 12, 2022. |
| (12) | Previously filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on June 23, 2022. |
| (13) | Previously filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on September 20, 2022. |

---

(14) Previously filed as Exhibit 10.9 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on May 15, 2024.

(15) Previously filed as Exhibit 10.01 to the Company's Current Report on Form 8-K, filed with the SEC on July 1, 2025.

(16) Previously filed as Exhibit 10.01 to the Company's Current Report on Form 8-K, filed with SEC on January 8, 2026.

(17) Previously filed as Exhibit 14.1 to the Company's Annual Report on Form 10-K, filed with the SEC on March 31, 2025.

(18) Previously filed as Exhibit 19.1 to the Company's Annual Report on Form 10-K, filed with the SEC on March 31, 2025. Incorporated by reference to Exhibit 14.1

\* Filed herewith

\*\* Furnished herewith

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(a) (1) and (2) Consolidated Financial Statements and Schedules

See the Index to Consolidated Financial Statements at page F-1 of this report.

#### **Table of Contents**

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|:---|:---|
|  | **<u>Page</u>** |
|  Report of Independent Registered Public Accounting Firm (PCAOB ID #42)<br>| F-2 |
|  Consolidated Financial Statements: |  |
|  Consolidated Statements of Assets and Liabilities as of December 31, 2025 and December 31, 2024 | F-3 |
|  Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023<br>| F-4 |
|  Consolidated Statements of Changes in Net Assets for the years ended December 31, 2025, 2024 and 2023<br>| F-5 |
|  Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023<br>| F-6 |
|  Consolidated Schedule of Investments as of December 31, 2025 and December 31, 2024 | F-7 |
|  Notes to Consolidated Financial Statements | F-16 |

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**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of Star Mountain Lower Middle-Market Capital Corp.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statements of assets and liabilities of Star Mountain Lower Middle-Market Capital Corp., (the "Company"), including the consolidated schedules of investments, as of December 31, 2025 and December 31, 2024, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended December 31, 2025, 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 at December 31, 2025 and 2024, and the results of its operations, changes in its net assets, and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

**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 Public Company Accounting Oversight Board (United States) ("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 audit 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 procedures included confirmation of investments owned as of December 31, 2025, and 2024, by correspondence with the custodian, brokers, portfolio companies and others; when replies were not received from brokers or others, we performed other auditing procedures. 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. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 2021.

New York, New York

March 31, 2026

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[*Table of Contents*](#TOC)

------

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Statements of Assets and Liabilities

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
|  **ASSETS** | | |
|  Non-controlled/non-affiliate investments at fair value (amortized cost of $324,546,406 and $325,265,220 as of December 31, 2025 and December 31, 2024, respectively) | $312185808 | $326959520 |
|  Controlled/affiliate investments at fair value (amortized cost of $62,459,798 and $52,910,374 as of December 31, 2025 and December 31, 2024, respectively) | 62857937 | 50680798 |
|  Cash | 5470978 | 4028665 |
|  Interest receivable | 3410139 | 3887028 |
|  Deferred financing cost | 1537817 | 2169211 |
|  Paydown receivable | 392623 | 341471 |
| Receivable for investments sold | 367810 |  |
| Dividend Receivable | 62136 |  |
| Other receivable | 57498 |  |
| Prepaid expenses | 42423 | 6748 |
| Due from Feeder Fund | 765 | - |
| &nbsp;&nbsp;&nbsp; **Total assets** | 386385934 | 388073441 |
|  **LIABILITIES** |  |  |
|  Credit facility payable | 122300000 | 122500000 |
| Incentive fees payable, net of fee waivers (Note 6) | 6223804 | 2813724 |
|  Redemptions payable | 5903771 | 5637890 |
|  Distributions payable | 5800098 | 5322771 |
|  Deferred tax liabilities | 4034663 | 6094196 |
|  Credit facility interest payable | 1869030 | 2267199 |
|  Management fees payable (Note 6) | 1184837 | 1157509 |
|  Professional fees payable | 659177 | 434744 |
| Subscriptions received in advance | 467500 |  |
| Trade payable | 394737 |  |
|  Reimbursement expense payable | 146408 | 77275 |
|  Other payables | 73008 | 900145 |
| Taxes payable | 64147 |  |
|  Legal fees payable | 33735 | 37883 |
| &nbsp;&nbsp;&nbsp; **Total liabilities** | 149154915 | 147243336 |
|  Commitments and contingencies (Note 11) |  |  |
| &nbsp;&nbsp;&nbsp; **Net assets** | $237231019 | $240830105 |
|  **NET ASSETS** |  |  |
|  Common shares, $0.001 par value (200,000,000 shares authorized, 10,105,559 and 9,857,301 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively) | $10106 | $9858 |
|  Additional paid-in capital | 256564590 | 246622366 |
|  Accumulated undistributed (overdistributed) earnings | (19343677) | (5802119) |
| &nbsp;&nbsp;&nbsp; **Total net assets** | $237231019 | $240830105 |
|  **Net asset value per share** | $23.48 | $24.43 |

---

See accompanying notes.

------

[*Table of Contents*](#TOC)

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Statements of Operations

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
|  **Non-controlled/non-affiliate investment income:** | | | |
| &nbsp;&nbsp;&nbsp; Interest income | $31626060 | $35518530 | $42194403 |
| &nbsp;&nbsp;&nbsp; PIK interest income | 2567790 | 4069038 | 3099419 |
| &nbsp;&nbsp;&nbsp; Other income | 1276339 | 188222 | 159915 |
| &nbsp;&nbsp;&nbsp; Dividend income | 974596 | 839055 | 1498864 |
|  **Controlled/affiliate investment income:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income | 2542068 | 2896720 | 253540 |
| &nbsp;&nbsp;&nbsp; PIK interest income <br>| 671752 | 469747 | 90372 |
| &nbsp;&nbsp;&nbsp; Other income <br>| 90678 |  | 18027 |
| &nbsp;&nbsp;&nbsp; Dividend income<br>| - | 206284 | 47811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total investment income:** | 39749283 | 44187596 | 47362351 |
|  **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and other financing fees | 8073752 | 12745236 | 14194984 |
| &nbsp;&nbsp;&nbsp; Management fees (Note 6) | 4707419 | 4464449 | 5183339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incentive fees (Note 6) | 3410080 | 4097254 | 4996040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 2417935 | 2460268 | 1525307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative fees | 998092 | 612444 | 535638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal expenses | 562782 | 382836 | 328091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Director expenses | 140000 | 143750 | 91250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total expenses before fee waivers** | 20310060 | 24906237 | 26854649 |
| &nbsp;&nbsp;&nbsp; **Net investment income before fee waivers**<br>| 19439223 | 19281359 | 20507702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fee waiver (Note 6) | - | - | (633649) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incentive fee waiver (Note 6) | - | (1283530) | (1034565) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total expenses**<br>| 20310060 | 23622707 | 25186435 |
| &nbsp;&nbsp;&nbsp; **Net investment income before taxes** | 19439223 | 20564889 | 22175916 |
| &nbsp;&nbsp;&nbsp; Income tax expense<br>| 79746 | 37907 | - |
| &nbsp;&nbsp;&nbsp; **Net investment income** <br>| 19359477 | 20526982 | 22175916 |
|  **Net gain (loss):** |  |  |  |
| &nbsp;&nbsp;&nbsp; Net realized gain (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled/non-affiliate investments | 4352098 | 3899990 | 45283 |
| &nbsp;&nbsp;&nbsp; Tax Expense on realized gain (loss) on investments<br>| (761000) | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) on investments | 3591098 | 3899990 | 45283 |
| &nbsp;&nbsp;&nbsp; Net change in unrealized gain (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled/non-affiliate investments | (14054896) | 4784046 | (5454105) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Controlled/affiliate investments | 2627715 | (4231146) | 2004459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized gain (loss) on investments | (11427181) | 552900 | (3449646) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net gain (loss)** | (7836083) | 4452890 | (3404363) |
| &nbsp;&nbsp;&nbsp; **Benefit (provision) for taxes on change in unrealized appreciation (depreciation) on investments** <br>| 2059533 | (6094196) |  |
| &nbsp;&nbsp;&nbsp; **Net increase (decrease) in net assets resulting from operations** | $13582927 | $18885676 | $18771553 |
|  **Per common share data:** |  |  |  |
|  Net investment income per share - basic and diluted | $1.92 | $2.42 | $3.02 |
|  Net increase (decrease) in net assets resulting from operations per share - basic and diluted | $1.35 | $2.23 | $2.56 |
|  Weighted average shares outstanding - basic and diluted | 10091308<br>| 8480833<br>| 7349990 |

---

See accompanying notes.

------

[*Table of Contents*](#TOC)

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Statements of Changes in Net Assets

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Number of** <br> **shares** | **Par value of** <br> **shares** |<br>**Additional paid-**<br> **in capital** | **Accumulated**<br> **undistributed** <br>(overdistributed) <br> **earnings** |<br>**Total net assets** |
|  **For the year ended December 31, 2023**  | | | | | |
|  **Balance, December 31, 2022** | 6592546 | $6593 | $163963185 | $2246995 | $166216773 |
|  Net investment income | - | - | - | 22175916 | 22175916 |
|  Net realized gain (loss) | - | - | - | 45283 | 45283 |
|  Net change in unrealized gain (loss) on investments | - | - | - | (3449646) | (3449646) |
|  Issuance of common shares | 1525054 | 1525 | 38646321 | - | 38647846 |
|  Purchases of shares in repurchase offer | (829792) | (830) | (21251912) |  | (21252742) |
|  Distributions declared to stockholders | - | - | - | (22100792) | (22100792) |
|  Stock issued in connection with dividend reinvestment plan | 399674 | 400 | 10177551 | - | 10177951 |
|  **Balance, December 31, 2023** | 7687482 | $7688 | $191535145 | $(1082244) | $190460589 |
|  **For the year ended December 31, 2024** |  |  |  |  |  |
|  **Balance, December 31, 2023** | 7687482 | $7688 | $191535145 | $(1082244) | $190460589 |
|  **Net investment income**  | - | - | - | 20526982 | 20526982 |
|  Net realized gain (loss) | - | - | - | 3899990 | 3899990 |
|  Net change in unrealized gain (loss) on investments | - | - | - | 552900 | 552900 |
|  Benefit (provision) for taxes on change in unrealized appreciation (depreciation) on investments |  |  |  | (6094196) | (6094196) |
|  Issuance of common shares | 2557801 | 2558 | 62327657 | - | 62330215 |
| Contribution receivable |  |  | 110891 |  | 110891 |
|  Purchase of shares in repurchase offer | (816463) | (816) | (20176977) | - | (20177793) |
|  Distributions declared to stockholders | - | - | - | (21324349) | (21324349) |
|  Stock issued in connection with dividend reinvestment plan | 428481 | 428 | 10544448 | - | 10544876 |
| Return of capital and other tax related adjustments | - | - | 2281202 | (2281202) | - |
|  **Balance, December 31, 2024** | 9857301 | $9858 | $246622366 | $(5802119) | $240830105 |
|  **For the year ended December 31, 2025**  |  |  |  |  |  |
|  **Balance, December 31, 2024<br>**  | 9857301 | $9858 | $246622366 | $(5802119) | $240830105 |
|  Net investment income<br>|  |  |  | 19359477 | 19359477 |
|  Net realized gain (loss)<br>|  |  |  | 3591098 | 3591098 |
|  Net change in unrealized gain (loss) on investments<br>|  |  |  | (11427181) | (11427181) |
|  Benefit (provision) for taxes on change in unrealized appreciation (depreciation) on investments |  |  |  | 2059533 | 2059533 |
|  Issuance of common shares<br>| 804741 | 805 | 19439713 |  | 19440518 |
|  Purchase of shares in repurchase offer | (1001688) | (1002) | (24221557) |  | (24222559) |
|  Distributions declared to stockholders<br>|  |  |  | (23280155) | (23280155) |
| Return of capital and other tax related adjustments |  |  | 3844330 | (3844330) |  |
|  Stock issued in connection with dividend reinvestment plan<br>| 445205 | 445 | 10879738 | - | 10880183 |
|  **Balance, December 31, 2025** | 10105559 | $10106 | $256564590 | $(19343677) | $237231019 |

---

See accompanying notes.

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[*Table of Contents*](#TOC)

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Statements of Cash Flows

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
|  **Cash flows from operating activities:** | | | |
|  Net increase (decrease) in net assets resulting from operations | $13582927 | $18885676 | $18771553 |
| &nbsp;&nbsp;&nbsp; Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized (gain) loss on investments | (4352098) | (3899990) | (45283) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized (gain) loss on investments | 11427181 | (552900) | 3449646 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net accretion of discounts and amortization of premiums | (1857711) | (1015506) | (1382244) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of investments | (76370772) | (51077026) | (90635833) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of investments | 7761589 | 5295629 | 2679712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from principal payments | 69176774 | 55868600 | 15101932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing costs | 620769 | 593706 | 627611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment-in-kind interest income | (3239542) | (4538785) | (3189791) |
|  Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest receivable | 476889 | (595234) | (418765) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable for investments sold | (367810) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend Receivable | (62136) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables | (57498) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses<br>| (35675) | (6748) | - |
| &nbsp;&nbsp;&nbsp; Due from Feeder Fund <br>| (765) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees payable (Note 6) | 27328 | 36097 | 71420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incentive fees payable (Note 6) | 3410080 | (1147752) | 3961476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit facility interest payable | (398169) | (1378413) | 1362066 |
| &nbsp;&nbsp;&nbsp; Professional fees payable <br>| 224431 | 126607 | 113061 |
| &nbsp;&nbsp;&nbsp; Deferred tax liabilities<br>| (2059533) | 6094196 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables | (827135) | 531146 | 181769 |
| &nbsp;&nbsp;&nbsp; Taxes payable <br>| 64147 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal fees payable | (4148) | 10921 | 585 |
| &nbsp;&nbsp;&nbsp; Trade payable <br>| 394737 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reimbursement expense payable | 69133 | (1795) | 43193 |
|  **Net cash provided by (used in) operating activities** | 17602993 | 23228429 | (49307892) |
|  **Cash flows from financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of common shares, including subscriptions received in advance<br>| 19908018 | 62330215 | 38647846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments in repurchase of shares | (23956678) | (19240596) | (16552049) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from credit facility | 96050000 | 49000000 | 96000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments of credit facility | (96250000) | (103000000) | (72500000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions paid | (11922645) | (11418922) | (10200810) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred financing and debt issuance costs paid | 10625 | (1916001) | - |
| &nbsp;&nbsp;&nbsp; **Net cash provided by (used in) financing activities** | (16160680) | (24245304) | 35394987 |
| **Net increase (decrease) in Cash**<br>| 1442313 | (1016875) | (13912905) |
|  **Cash, beginning of period** | 4028665 | 5045540 | 18958445 |
|  **Cash, end of period** | $5470978 | $4028665 | $5045540 |
|  Supplemental disclosures of cash flow information: |  |  |  |
| Non cash operating activities:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest received in kind | $3239542 | $4538785 | $3189791 |
| Supplemental and non cash financing activities:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares issued from dividend reinvestment plan (see Note 10) | $10880183 | $10544876 | $10177951 |
|  Supplemental Information: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $8368951 | $12509009 | $10626030 |
| &nbsp;&nbsp;&nbsp; Cash paid for federal income taxes<br>| $840746 | $147404 | $- |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; See accompanying notes.

------

[*Table of Contents*](#TOC)

**STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Schedule of Investments

#### December 31, 2025

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Portfolio Company (1)(2)(3)(4)(5)(6) | Footnotes | Spread Above Index (7) | Interest Rate | Acquisition Date | Maturity | Principal, Shares, Units | Amortized Cost (8) | Fair Value (9) | % of Net Assets |
| Investments |  |  |  |  |  |  |  |  |  |
| Non-controlled/non-affiliate investments  |  |  |  |  |  |  |  |  |  |
| First lien senior secured term loan  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Aerospace & Defense |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Machine & Tool Holdings, LLC | (17)(19)(22)(23) | S + 13.01% PIK | 16.66% PIK | 1/15/2020 | 1/15/2025 | 581276 | $581276 | $- | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Machine & Tool Holdings, LLC | (17)(19)(22)(23) | S + 14.01% PIK | 17.66% PIK | 11/22/2023 | 1/15/2025 | 6335 | 6335 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Machine & Tool Holdings, LLC | (13)(19)(22)(23) |  | 20.00% PIK | 11/22/2023 | 1/15/2025 | 19361 | 19361 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Machine & Tool Holdings, LLC | (13)(19)(22)(23) |  | 13.00% PIK | 11/22/2023 | 1/15/2025 | 68577 | 68577 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Machine & Tool Holdings, LLC | (13)(19) |  | 11.00% PIK | 5/22/2024 | 6/30/2026 | 69865 | 69865 |  | 0 |
|  |  |  |  |  |  | 745414 | 745414 |  | 0 |
| &nbsp;&nbsp;&nbsp; Building Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Built by Grid, LLC  | (10)(17) | S + 7.18% | 10.83%  | 12/5/2025  | 12/5/2030 | 1883561 | $1841720 | $1841720 | 0.8% |
|  |  |  |  |  |  | 1883561 | 1841720 | 1841720 | 0.8 |
| &nbsp;&nbsp;&nbsp; Chemicals  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Douglas Products and Packaging Company, LLC  | (10)(16) | S + 8.04% | 11.73%  | 9/20/2023  | 9/20/2028  | 19898602 | 19494185 | 19898603 | 8.4 |
|  |  |  |  |  |  | 19898602 | 19494185 | 19898603 | 8.4 |
| &nbsp;&nbsp;&nbsp; Commercial Services & Supplies  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swyft AcquireCo LLC (dba Swyft Filings)  | (15)(16) | S + 2.75% | 6.44% | 12/20/2021 | 12/20/2027 | 285649 | 285293 | 285650 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swyft AcquireCo LLC (dba Swyft Filings)  | (10)(16) | S + 7.65% | 11.34% | 12/20/2021 | 12/20/2027 | 3682383 | 3658259 | 3682383 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Versar Inc.  | (10)(17) | S + 9.58% | 13.23% | 8/4/2023 | 8/4/2028 | 10000000 | 9755014 | 10002500 | 4.2 |
|  |  |  |  |  |  | 13968032 | 13698566 | 13970533 | 5.9 |
| &nbsp;&nbsp;&nbsp; Construction & Engineering  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fremont-Wright, LLC  | (16) | S + 9.20% | 12.89%  | 12/2/2020 | 6/30/2026 | 4042177 | 4042177 | 4042177 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kassel Mechanical, LLC  | (16) | S + 7.66% Cash + 0.34% PIK | 11.35% Cash + 0.34% PIK | 3/17/2025 | 9/17/2029 | 12337305 | 12178493 | 12242307 | 5.2 |
| &nbsp;&nbsp;&nbsp; Kelso Industries  | (17)(18) | S + 5.75% | 9.40% | 12/31/2024 | 12/30/2029 | 9007713 | 8866218 | 9007713 | 3.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kelso Industries  | (17)(18) | S + 5.75% | 9.40% | 3/12/2025 | 12/30/2029 | 3433239 | 3433239 | 3433239 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MechanAir, LLC  | (17)(18) | S + 6.00% | 9.65% | 12/18/2025 | 12/18/2031 | 652987 | 646769 | 646769 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MechanAir, LLC  | (17)(26) | S + 6.00% | 9.65% | 12/18/2025 | 12/18/2031 | 5789474 | 5745056 | 5745056 | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vertical Mechanical Group, LLC  | (10)(17) | S + 8.76% | 12.41% | 5/12/2023 | 5/12/2028 | 12037143 | 11870297 | 11902327 | 5.0 |
|  |  |  |  |  |  | 47300038 | 46782249 | 47019588 | 19.8 |
| &nbsp;&nbsp;&nbsp; Distributors  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48forty Intermediate Holdings, Inc.  | (16)(19) | S + 6.15% | 9.84%  | 10/11/2022  | 11/30/2029  | 15221270 | 14822272 | 7300311 | 3.1 |
|  |  |  |  |  |  | 15221270 | 14822272 | 7300311 | 3.1 |
| &nbsp;&nbsp;&nbsp; Diversified Telecommunication Services  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gridsource Incorporated, LLC  | (17) | S + 7.00% | 10.65%  | 12/16/2022  | 3/30/2029  | 14036143 | 13814057 | 13446625 | 5.7 |
|  |  |  |  |  |  | 14036143 | 13814057 | 13446625 | 5.7 |
| &nbsp;&nbsp;&nbsp; Electrical Equipment  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Masterwork Electronics, Inc.  | (17)(19) | S + 7.65% | 11.30% | 11/17/2022 | 11/17/2027 | 8840576 | 8638547 | 828362 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Masterwork Electronics, Inc.  | (15)(17)(19) | S + 7.65% | 11.30% | 11/17/2022 | 11/17/2027 | 521739 | 521739 | 48887 | 0.0 |
|  |  |  |  |  |  | 9362315 | 9160286 | 877249 | 0.3 |
| &nbsp;&nbsp;&nbsp; Entertainment  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chicken Soup For The Soul, LLC  | (16)(19)(23) | S + 8.60% | 12.29%  | 10/29/2021 | 3/31/2024 | 6380856 | 6380856 | 3269232 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chicken Soup For The Soul, LLC  | (19) | -  | 19.00% PIK | 8/7/2025 | 8/7/2026 | 900010 | 900010 | 900010 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Linden Research, Inc. (dba Linden Labs)  | (10)(17) | S + 7.67% Cash + 3.56% PIK | 11.32% Cash + 3.56% PIK | 12/31/2020 | 9/30/2028 | 18260031 | 18080381 | 18260031 | 7.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NW Entertainment, LLC  | (17) | S + 8.51% Cash + 1.50% PIK | 12.16% Cash + 1.50% PIK | 11/4/2022 | 11/4/2027 | 6164071 | 6095887 | 6038324 | 2.5 |
|  |  |  |  |  |  | 31704968 | 31457134 | 28467597 | 12.0 |
| &nbsp;&nbsp;&nbsp; Healthcare Providers & Services  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-HH Platform, Inc. (dba Preferred Care Home Health)  | (10)(17) | S + 7.62% Cash + 1.79% PIK | 11.27% Cash + 1.79% PIK | 5/16/2023 | 5/16/2028 | 6916484 | 6815782 | 6916484 | 2.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IPA Intermediate Co., LLC (dba Integrated Pain Associates)  | (17)(18) | S + 7.75% | 11.40%  | 1/9/2023 | 1/9/2028 | 12361934 | 12198461 | 12361934 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IPA Intermediate Co., LLC (dba Integrated Pain Associates)  | (17)(18) | S + 7.75% | 11.40%  | 12/18/2025 | 1/9/2028 | 425532 | 425532 | 425532 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Klein Hersh, LLC  | (10)(17) | S + 0.24% | 3.89%  | 4/27/2022 | 4/27/2028 | 17285870 | 16790860 | 15081922 | 6.4 |
|  |  |  |  |  |  | 36989820 | 36230635 | 34785872 | 14.7 |
| &nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Range NYC, LLC (dba Five Iron Golf)  | (17) | S + 7.61% | 11.26%  | 9/15/2022 | 9/15/2027 | 3329832 | 3329832 | 3357803 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Range NYC, LLC (dba Five Iron Golf)  | (17) | S + 7.61% | 11.26%  | 9/15/2022 | 9/15/2027 | 4802521 | 4732570 | 4844303 | 2.0 |
|  |  |  |  |  |  | 8132353 | 8062402 | 8202106 | 3.4 |
| &nbsp;&nbsp;&nbsp; Household Durables  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SkyBell Technologies, Inc.  | (19)(22)(23) | -  | 16.91% PIK | 12/13/2019  | 12/13/2024  | 4828409 | 4534395 | 3867034 | 1.6 |
|  |  |  |  |  |  | 4828409 | 4534395 | 3867034 | 1.6 |
| &nbsp;&nbsp;&nbsp; Household Products  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHG Parent Holding LLC (dba Coop Home Goods)  | (10)(17) | S + 7.70% | 11.35%  | 6/18/2021  | 6/27/2026  | 12683981 | 12525367 | 12683981 | 5.3 |
|  |  |  |  |  |  | 12683981 | 12525367 | 12683981 | 5.3 |
| &nbsp;&nbsp;&nbsp; Machinery  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Texas Contract Manufacturing Group, Inc.  | (17) | S + 5.11% Cash + 4.00% PIK | S + 8.76% Cash + 4.00% PIK | 4/27/2022  | 4/27/2027  | 4427923 | 4382109 | 3645509 | 1.5 |
|  |  |  |  |  |  | 4427923 | 4382109 | 3645509 | 1.5 |
| &nbsp;&nbsp;&nbsp; Media  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PadSquad, LLC  | (10)(17) | S + 7.42% | 11.07%  | 3/30/2022 | 3/30/2027 | 2620175 | 2600278 | 2620175 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trailer Park Group Holdings LLC  | (10)(17) | S + 7.32% Cash + 0.99% PIK | 10.97% Cash + 0.99% PIK | 8/2/2021 | 8/2/2026 | 14981089 | 14902350 | 13662753 | 5.8 |
|  |  |  |  |  |  | 17601264 | 17502628 | 16282928 | 6.9 |
| &nbsp;&nbsp;&nbsp; Personal Products  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japonesque, LLC  | (10)(17) | S + 9.48% Cash + 0.69% PIK | 13.13% Cash + 0.69% PIK | 11/23/2021 | 6/30/2027 | 4304034 | 4270684 | 4304034 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japonesque, LLC  |  | -  | 18.00% PIK | 8/5/2025 | 6/30/2027 | 231148 | 226525 | 228189 | 0.1 |
|  |  |  |  |  |  | 4535182 | 4497209 | 4532223 | 1.9 |
| &nbsp;&nbsp;&nbsp; Professional Services  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CorTech, LLC  | (17) | S + 7.60% | 11.25%  | 6/3/2025 | 6/30/2026 | 7546280 | 7536366 | 7285934 | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jefferson Consulting Group, LLC  | (10)(17) | S + 3.89% Cash + 3.91% PIK | 7.54% Cash + 3.91% PIK | 7/1/2024 | 7/1/2029 | 8722712 | 8598222 | 7565829 | 3.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PQT Ayaquhs, LLC (dba WWC Global)  | (17) | S + 5.76% | 9.41% | 8/1/2022 | 8/1/2027 | 3437642 | 3408886 | 3437642 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qualified Digital, LLC  | (17) | S + 7.00% | 10.65% | 7/30/2024 | 7/30/2029 | 12032857 | 11858587 | 11881243 | 5.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qualified Digital, LLC  | (17) | S + 7.00% | 10.65% | 7/30/2024 | 7/30/2029 | 2441786 | 2357441 | 2355579 | 1.0 |
|  |  |  |  |  |  | 34181277 | 33759502 | 32526227 | 13.7 |
| &nbsp;&nbsp;&nbsp; Specialty Retail  |  |  |  |  |  | ` |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Clearview Systems, LLC (dba Rip-it)  | (10)(17) | S + 4.54% Cash + 6.50% PIK | 8.19% Cash + 6.50% PIK | 10/11/2022  | 10/11/2027  | 7052922 | 6993393 | 7052922 | 3.0 |
|  |  |  |  |  |  | 7052922 | 6993393 | 7052922 | 3.0 |
| &nbsp;&nbsp;&nbsp; Trading Companies & Distributors  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ambient Enterprises Holdco LLC  | (17)(18) | S + 5.25% | 8.90% | 12/31/2024 | 6/30/2030 | 1256546 | 1256546 | 1256546 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ambient Enterprises Holdco LLC  | (17)(18) | S + 5.25% | 8.90% | 10/31/2025 | 6/30/2030 | 418203 | 412167 | 418203 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ambient Enterprises Holdco LLC  | (17)(18) | S + 5.25% | 8.90% | 12/31/2024 | 6/30/2030 | 6372503 | 6282393 | 6367431 | 2.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ambient Enterprises Holdco LLC  | (17)(18) | S + 5.25% | 8.90% | 12/31/2024 | 6/30/2030 | 1771299 | 1746933 | 1771299 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ambient Enterprises Holdco LLC  | (17)(18) | S + 5.25% | 8.90% | 7/3/2025 | 6/30/2030 | 514558 | 502388 | 514558 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ambient Enterprises Holdco LLC  | (17)(18) | S + 5.25% | 8.90% | 7/3/2025 | 6/30/2030 | 165521 | 165521 | 165521 | 0.1 |
|  |  |  |  |  |  | 10498630 | 10365948 | 10493558 | 4.4 |
| &nbsp;&nbsp;&nbsp; Transportation Infrastructure  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TCP Acquisition, LLC (dba HighStar Traffic)  | (17) | S + 5.45% Cash + 4.05% PIK | 9.10% Cash + 4.05% PIK | 7/26/2022  | 7/26/2027  | 10088323 | 10003681 | 9816947 | 4.1 |
|  |  |  |  |  |  | 10088323 | 10003681 | 9816947 | 4.1 |
| Total first lien senior secured term loan |  |  |  |  |  |  | $300673152 | $276711533 | 116.5% |

---

#### See accompanying notes.

------

[*Table of Contents*](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Schedule of Investments – (continued)

#### December 31, 2025

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Portfolio Company (1)(2)(3)(4)(5)(6) | Footnotes | Spread Above Index (7) | Interest Rate | Acquisition Date | Maturity | Principal, Shares, Units | Amortized Cost (8) | Fair Value (9) | % of Net Assets |
| Senior unsecured notes | (24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Electrical Equipment |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HH Masterwork Intermediate, Inc. | (19)(22) |  | 17.00% PIK | 11/17/2022  | 5/17/2028  | 2155820 | $2033098 | $- | 0.0% |
|  |  |  |  |  |  | 2155820 | 2033098 | - | 0.0 |
| Total senior unsecured notes |  |  |  |  |  |  | 2033098 | - | 0.0 |
| Preferred equity securities | (12)(24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Building Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Built by Grid, LLC | (21)(25) |  | -  | 12/5/2025 | - | 214378 | 214378 | 214378 | 0.1 |
|  |  |  |  |  |  | 214378 | 214378 | 214378 | 0.1 |
| Commercial Services and Supplies |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Swyft Filings Holdings, LLC | (13)(20)(21)(25) |  | 8.00% PIK  | 12/20/2021  | - | 192444 | 183612 | 213265 | 0.1 |
|  |  |  |  |  |  | 192444 | 183612 | 213265 | 0.1 |
| Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; MechanAir Holdings, LLC | (13)(21)(25) |  | 13.50% PIK | 9/2/2021 | - | 1704 | 1703499 | 2578541 | 1.1 |
| &nbsp;&nbsp;&nbsp; MechanAir Holdings, LLC | (13)(21)(25) |  | - | 9/17/2025 | - | 65 | 61608 | 735515 | 0.3 |
| &nbsp;&nbsp;&nbsp; Vertical Mechanical Group Holdings, LLC | (21)(25) |  | 8.00% PIK | 5/12/2023 | - | 185714 | 1857143 | 5727143 | 2.4 |
|  |  |  |  |  |  | 187483 | 3622250 | 9041199 | 3.8 |
| Diversified Telecommunication Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Gridsource Holdings, LLC | (21)(25) |  | 8.00% PIK | 3/9/2023 | - | 3959977 | 799597 | 175121 | 0.1 |
|  |  |  |  |  |  | 3959977 | 799597 | 175121 | 0.1 |
| Entertainment |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; NW Entertainment, LLC | (21)(25) |  | 10.00% PIK | 11/4/2022 | - | 1183 | 1134428 | 1550416 | 0.7 |
| &nbsp;&nbsp;&nbsp; NW Entertainment, LLC | (21)(25) |  | 12.00% PIK | 2/27/2025 | - | 826 | 531143 | 1024009 | 0.4 |
|  |  |  |  |  |  | 2009 | 1665571 | 2574425 | 1.1 |
| Healthcare Providers & Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; IPA Investors, LP (dba Integrated Pain Associates) | (21)(25) |  | 8.00% PIK | 1/9/2023 | - | 2749 | 2573151 | 3160558 | 1.3 |
|  |  |  |  |  |  | 2749 | 2573151 | 3160558 | 1.3 |
| Media |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; PadSquad Holdings, LLC | (13)(21)(25) |  | 6.00% Cash + 6.00% PIK | 3/30/2022 | - | 720767 | 1964204 | 3326343 | 1.4 |
| &nbsp;&nbsp;&nbsp; Trailer Park Group Holdings, LLC Class A-1 Units | (13)(21)(25) |  | 15.00% PIK | 12/19/2023 | - | 40888 | 73599 | 36419 | 0.0 |
| &nbsp;&nbsp;&nbsp; Trailer Park Group Holdings LLC - Class A Units | (13)(21)(25) |  | 8.00% PIK | 8/2/2021 | - | 371822 | 404702 | - | 0.0 |
| &nbsp;&nbsp;&nbsp; Trailer Park Group Holdings LLC | (13)(21)(25) |  | 15.00% PIK | &nbsp;&nbsp;&nbsp;&nbsp; - &nbsp;&nbsp;&nbsp;&nbsp;  | - | 37594 | - | 75127 | 0.0 |
|  |  |  |  |  |  | 1171071 | 2442505 | 3437889 | 1.4 |
| Professional Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Hometown Holdings JV, LLC (dba BWG Strategy) | (13)(21)(25) |  | 8.00% Preferred Return | 12/24/2020 | - | 666667 | 659761 | 693300 | 0.3 |
| &nbsp;&nbsp;&nbsp; JCFV Holdings, LLC | (21)(25) |  | 8.00% PIK | 7/1/2024 | - | 415916 | 1538462 | 519231 | 0.2 |
| &nbsp;&nbsp;&nbsp; PQT Ayaquhs, LLC (dba WWC Global) | (13)(21)(25) |  | 10.50% PIK | 8/1/2022 | - | 5774 | 1064516 | 4577419 | 1.9 |
| &nbsp;&nbsp;&nbsp; SPC QD SM, LP | (21)(25) |  | - | 7/30/2024 | - | 42 | 2207572 | 2655714 | 1.1 |
|  |  |  |  |  |  | 1088399 | 5470311 | 8445664 | 3.5 |
| Software |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; PureCars Technologies, LLC | (13)(21)(25) |  | 8.00% PIK | 4/17/2019 | - | 592 | 267013 | 293634 | 0.1 |
|  |  |  |  |  |  | 592 | 267013 | 293634 | 0.1 |
| Total preferred equity securities |  |  |  |  |  |  | 17238388 | 27556133 | 11.5 |
| Warrants and other equity securities | (12)(24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fremont-Wright, LLC | (25) |  | - | 12/2/2020 | - | 2 | - | 1565233 | 0.7 |
|  |  |  |  |  |  | 2 | - | 1565233 | 0.7 |
| Distributors |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; 48forty Intermediate Holdings, Inc. | (19)(25) |  | - | 10/11/2022 | - | 1994 | - | - | 0.0 |
|  |  |  |  |  |  | 1994 | - | - | 0.0 |
| Electrical Equipment |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; HH Masterwork Intermediate, Inc. | (19)(25) |  | - | 11/17/2022 | - | 190019 | - | - | 0.0 |
|  |  |  |  |  |  | 190019 | - | - | 0.0 |
| Entertainment |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; LRI Holdco, LLC (dba Linden Labs) | (21)(25) |  | - | 12/31/2020 | - | 1 | - | 150697 | 0.1 |
| &nbsp;&nbsp;&nbsp; LRI Holdco, LLC (dba Linden Labs) | (25) |  | - | 12/31/2020 | - | 1 | 43478 | 196056 | 0.1 |
|  |  |  |  |  |  | 2 | 43478 | 346753 | 0.2 |
| Healthcare Providers & Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Klein Hersh, LLC |  |  | - | 4/27/2022 | - | 1003 | - | - | 0.0 |
| &nbsp;&nbsp;&nbsp; Nurses 24/7 Holdings, LLC | (21)(25) |  | - | 5/26/2023 | - | 182 | 419877 | 35143 | 0.0 |
|  |  |  |  |  |  | 1185 | 419877 | 35143 | 0.0 |
| Hotels, Restaurants & Leisure |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; The Range NYC, LLC (dba Five Iron Golf) | (25) |  | - | 9/15/2022 | - | 40593 | 71599 | 64875 | 0.0 |
|  |  |  |  |  |  | 40593 | 71599 | 64875 | 0.0 |
| Household Durables |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; SkyBell Technologies, Inc. | (19)(25) |  | - | 12/13/2019 | - | 1917813 | - | - | 0.0 |
|  |  |  |  |  |  | 1917813 | - | - | 0.0 |
| Household Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; CHG Parent Holding LLC (dba Coop Home Goods) | (21)(25) |  | - | 6/18/2021 | - | 535714 | 535714 | 1150000 | 0.5 |
|  |  |  |  |  |  | 535714 | 535714 | 1150000 | 0.5 |
| Machinery |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Texas Contract Manufacturing Group, Inc. | (25) |  | - | 4/27/2022 | - | 1602 | - | - | 0.0 |
|  |  |  |  |  |  | 1602 | - | - | 0.0 |
| Media |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Channel Factory Holdings, LLC | (13)(21)(25) |  | - | 3/31/2025 | - | 819478 | - | 1384954 | 0.6 |
|  |  |  |  |  |  | 819478 | - | 1384954 | 0.6 |
| Professional Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; CorTech, LLC | (25) |  | - | 6/30/2025 | - | 1 | - | 81853 | 0.0 |
| &nbsp;&nbsp;&nbsp; NSC Holdings, LLC | (21)(25) |  | - | 4/26/2019 | - | 111 | 271262 | 639920 | 0.3 |
| &nbsp;&nbsp;&nbsp; PQT Ayaquhs, LLC (dba WWC Global) | (25) |  | - | 8/1/2022 | - | 645 | - | 377419 | 0.2 |
|  |  |  |  |  |  | 757 | 271262 | 1099192 | 0.5 |
| Software |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Proactive Dealer Holdings Parent, LLC | (21)(25) |  | 10.00% PIK | 6/10/2024  | - | 445 | 730271 | 346746 | 0.1 |
|  |  |  |  |  |  | 445 | 730271 | 346746 | 0.1 |
| Total warrants and other equity securities |  |  |  |  |  |  | 2072201 | 5992896 | 2.6 |
| Fund investments |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Diversified Financials |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Madryn Select Opportunities, LP | (18)(25) |  | -  | 1/4/2022 | - | - | 2529567 | 1925246 | 0.8 |
|  |  |  |  |  |  | - | 2529567 | 1925246 | 0.8 |
| Total fund investments |  |  |  |  |  |  | 2529567 | 1925246 | 0.8 |
| Total non-controlled/non-affiliate investments |  |  |  |  |  |  | $324546406 | $312185808 | 131.4% |

---

**

#### See accompanying notes.

------

[*Table of Contents*](#TOC)

**STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Schedule of Investments – (continued)

#### December 31, 2025

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Portfolio Company (1)(2)(3)(4)(5)(6) | Footnotes | Spread Above Index (7) | Interest Rate | Acquisition Date | Maturity | Principal, Shares, Units | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> Amortized Cost (8) | Fair Value (9) | % of Net Assets |
| Controlled/affiliate investments |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; First lien senior secured term loan |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Delva Master Holdings | (11)(16)(19) | S + 10.26% | 13.95%  | 8/13/2025 | 9/1/2030 | 901698 | $901698 | $850931 | 0.4% |
|  |  |  |  |  |  | 901698 | 901698 | 850931 | 0.4 |
| Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Watt Acquisition, LLC | (10)(11)(17) | S +8.77% Cash + 5.48% PIK | 12.42% Cash + 5.48% PIK | 4/15/2022 | 4/15/2027 | 1625086 | 1614622 | 1625086 | 0.7 |
|  |  |  |  |  |  | 1625086 | 1614622 | 1625086 | 0.7 |
| Diversified Telecommunication Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Caregility Corporation | (11)(17) | S + 3.00% Cash + 6.26% PIK | 6.65% Cash +6.26% PIK | 12/29/2021 | 10/31/2026 | 2609221 | 2506145 | 2581303 | 1.1 |
|  |  |  |  |  |  | 2609221 | 2506145 | 2581303 | 1.1 |
| Food Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Uncle John's Pride, LLC | (11)(16) | S + 8.11% | 11.80% | 3/31/2022 | 3/31/2027 | 1740572 | 1740572 | 1740572 | 0.7 |
| &nbsp;&nbsp;&nbsp; Uncle John's Pride, LLC | (11)(16) | S + 8.11% | 11.80% | 3/31/2022 | 3/31/2027 | 5116215 | 5066496 | 5116215 | 2.2 |
|  |  |  |  |  |  | 6856787 | 6807068 | 6856787 | 2.9 |
| Healthcare Providers & Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Arrow Home Health, LLC (dba Acara Home Health) | (11)(17) | S + 8.50% | 12.15% | 3/19/2021 | 3/19/2026 | 789190 | 778103 | 764370 | 0.3 |
|  |  |  |  |  |  | 789190 | 778103 | 764370 | 0.3 |
| Leisure Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; MPUSA, LLC (dba Mission) | (11)(17) | S + 9.26% PIK | 12.91% PIK | 12/9/2021 | 12/9/2026 | 1786561 | 1781191 | 1712240 | 0.7 |
|  |  |  |  |  |  | 1786561 | 1781191 | 1712240 | 0.7 |
| Professional Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Lasalle Staffing, LLC | (10)(11)(16) | S +8.45% | 12.14%  | 2/15/2022 | 2/15/2027 | 7150785 | 7076775 | 7150785 | 3.0 |
|  |  |  |  |  |  | 7150785 | 7076775 | 7150785 | 3.0 |
| Trading Companies & Distributors |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; USBid Inc. | (10)(11)(17) | S + 8.34% | 11.99%  | 11/3/2022  | 11/3/2027  | 2648797 | 2625002 | 2599529 | 1.1 |
|  |  |  |  |  |  | 2648797 | 2625002 | 2599529 | 1.1 |
| Total first lien senior secured term loan |  |  |  |  |  |  | 24090604 | 24141031 | 10.2 |
| Senior unsecured notes | (24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Consumer Finance |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Microf, LLC | (11)(17) | S + 10.85% | 14.50% | 3/29/2019 | 11/30/2027 | 3714429 | 3695851 | 3763831 | 1.6 |
|  |  |  |  |  |  | 3714429 | 3695851 | 3763831 | 1.6 |
| Total senior unsecured notes |  |  |  |  |  |  | 3695851 | 3763831 | 1.6 |
| Preferred equity securities | (12)(24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Aerospace & Defense |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Delva Master Holdings | (11)(19)(25) | - | 18.00% PIK | 8/13/2025 | - | 1636 | 7679427 | 7905825 | 3.4 |
|  |  |  |  |  |  | 1636 | 7679427 | 7905825 | 3.4 |
| Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Watt Contracting Holdings, LLC | (11)(21)(25) | - | 15.00% PIK | 4/15/2022 | - | 4439 | 4380196 | 7260300 | 3.1 |
|  |  |  |  |  |  | 4439 | 4380196 | 7260300 | 3.1 |
| Diversified Telecommunication Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Caregility Corporation - Series A-1 Units  | (11)(13)(25) | -  | 8.00% PIK | 12/31/2022 | - | 151018 | 1579910 | 147483 | 0.2 |
| &nbsp;&nbsp;&nbsp; Caregility Corporation - Series A-2 Units | (11)(13)(25) |  |  | 12/31/2022 |  | 145593 | 496187 | 46531 | 0.0 |
| &nbsp;&nbsp;&nbsp; Caregility Corporation - Series B Units | (11)(13)(25) | - | 8.00% PIK | 7/3/2023 | - | 446689 | 3591494 | 4732688 | 2.0 |
|  |  |  |  |  |  | 743300 | 5667591 | 4926702 | 2.2 |
| Food Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; UJP Acquisition, LLC (dba Uncle John's Pride) | (11)(13)(21)(25) | - | 8.00% PIK | 3/31/2022 | - | 2829787 | 2829787 | 4966277 | 2.1 |
|  |  |  |  |  |  | 2829787 | 2829787 | 4966277 | 2.1 |
| Healthcare Providers & Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Arrow Home Health, LLC (dba Acara Home Health) - Class A Units | (11)(21)(25) | - | 10.00% Preferred Return | 3/19/2021 | - | 571080 | 564321 | 252425 | 0.1 |
| &nbsp;&nbsp;&nbsp; Arrow Home Health, LLC (dba Acara Home Health) - Class 1 Units | (11)(13)(21)(25) | - | -  | 11/13/2023 | - | 56005 | 56005 | 112010 | 0.0 |
|  |  |  |  |  |  | 627085 | 620326 | 364435 | 0.1 |
| Leisure Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; TS-MP, LLC (dba Mission) - Class A-1 | (11)(21)(25) | - | - | 12/9/2021 | - | 69 | 1928409 | - | 0.0 |
| &nbsp;&nbsp;&nbsp; TS-MP, LLC (dba Mission) - Class AA-1 | (11)(21)(25) | - | - | 12/10/2024 | - | 88 | 1960641 | 1695478 | 0.7 |
|  |  |  |  |  |  | 157 | 3889050 | 1695478 | 0.7 |
| Professional Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Capone Holdings JV, LLC (dba LaSalle Staffing) | (11)(21)(25) | - | 8.00% Preferred Return | 2/15/2022 | - | 4000000 | 4000000 | 6093333 | 2.6 |
|  |  |  |  |  |  | 4000000 | 4000000 | 6093333 | 2.6 |
| Trading Companies & Distributors |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; USBid Parent, LLC - Class A | (11)(25) | - | - | 11/3/2022 | - | 2813 | 2812500 | - | 0.0 |
| &nbsp;&nbsp;&nbsp; USBid Parent, LLC - Class C | (11)(25) | - | 10.00% PIK | 11/2/2023 | - | 9375 | 7324 | - | 0.0 |
| &nbsp;&nbsp;&nbsp; USBid Parent, LLC - Class C2 | (11)(25) | - | 10.00% PIK | 4/12/2024 | - | 600000 | 468750 | 555469 | 0.2 |
| &nbsp;&nbsp;&nbsp; USBid Parent, LLC - Class C3 | (11)(25) | - | 10.00% PIK | 4/12/2024 | - | 2400000 | 1875000 | 1155469 | 0.5 |
|  |  |  |  |  |  | 3012188 | 5163574 | 1710938 | 0.7 |
| Total preferred equity securities |  |  |  |  |  |  | 34229951 | 34923288 | 14.9 |
| Warrants and other equity securities | (12)(24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Aerospace & Defense |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Delva Master Holdings | (11)(19)(25) | - | 18.00% PIK | 8/13/2025 | - | 10493 | - | - | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Delva Master Holdings | (11)(19)(25) | - | - | 8/13/2025 | - | 1354 | - | - | 0.0 |
|  |  |  |  |  |  | 11847 | - | - | 0.0 |
| Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Watt Contracting Holdings, LLC | (11)(21)(25) | - | - | 4/15/2022 | - | 100408 | - | - | 0.0 |
|  |  |  |  |  |  | 100408 | - | - | 0.0 |
| Diversified Telecommunication Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Caregility Corporation | (11)(25) | - | - | 12/29/2021 | - | 221574 | 443392 | - | 0.0 |
| &nbsp;&nbsp;&nbsp; Caregility Corporation | (11)(25) | - | - | 12/29/2021 | - | 46227 | - | - | 0.0 |
|  |  |  |  |  |  | 267801 | 443392 | - | 0.0 |
| Food Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; UJP Acquisition, LLC (dba Uncle John's Pride) | (11)(21)(25) | - | - | 3/31/2022 | - | 127215 | - | 29787 | 0.0 |
|  |  |  |  |  |  | 127215 | - | 29787 | 0.0 |
| Trading Companies & Distributors |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; USBid Parent, LLC | (11)(25) | - | - | 11/3/2022 | - | 204 | - | - | 0.0 |
|  |  |  |  |  |  | 204 | - | - | 0.0 |
| Total warrants and other equity securities |  |  |  |  |  |  | 443392 | 29787 | 0.0 |
| Total controlled/affiliate investments |  |  |  |  |  |  | 62459798 | 62857937 | 26.5 |
| TOTAL INVESTMENTS |  |  |  |  |  |  | $387006204 | 375043745 | 158.1% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) All of the Company's investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the "1940 Act"), unless otherwise noted. All of the Company's investments are issued by U.S. portfolio companies unless otherwise noted.

&nbsp;&nbsp;&nbsp;&nbsp;(2) All investments are non-controlled/non-affiliated investments as defined by the 1940 Act, unless otherwise noted. The 1940 Act classifies investments based on the level of control that the Company maintains in a particular portfolio company.

&nbsp;&nbsp;&nbsp;&nbsp;(3) All investments are co-investments made with the Company's affiliates in accordance with the terms of the exemptive relief that the Company received from the U.S. Securities and Exchange Commission (the "SEC"), unless otherwise noted. See Note 6 "Transactions with Related Parties" in the accompanying notes to the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Unless otherwise indicated, all investments are considered Level 3 assets.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Unless otherwise indicated, the Company's portfolio companies are pledged as collateral supporting the amounts outstanding under the Secured Credit Facility (as defined herein).

&nbsp;&nbsp;&nbsp;&nbsp;(6) Except as otherwise noted, all of the Company's portfolio company investments are subject to legal restrictions on sales.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Loan contains a variable rate structure and may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate ("SOFR" or "S") or an alternate base rate which can include the Federal Funds Effective Rate or the Prime Rate, at the borrower's option, and which reset periodically based on the terms of the loan agreement. Interest rates subject to SOFR are typically accompanied by a Credit Spread Adjustment ("CSA").

&nbsp;&nbsp;&nbsp;&nbsp;(8) The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.

&nbsp;&nbsp;&nbsp;&nbsp;(9) Because there is no readily available market value for these investments, the fair value of each of these investments is determined in good faith using significant unobservable inputs by the Company's board of directors (the "Board") as required by the 1940 Act. See Note 4 "Fair Value Measurements" in the accompanying notes to the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;(10) The Company categorized its unitranche loans as First Lien Senior Secured Loans. The First Lien Senior Secured Loan is comprised of two components: a first out tranche ("First Out") and last out tranche ("Last Out"). The Company syndicates the First Out tranche and retains the Last Out tranche. The First Out and Last Out tranches have the same maturity date. Interest disclosed reflects the contractual rate of First Lien Senior Secured Loan. The First Out tranche has priority as to the Last Out tranche with respect to payments of principal, interest and any amounts due thereunder. The Company may be entitled to receive additional interest as a result of the Agreement Among Lenders ("AAL") entered into with the First Out lender. In exchange for the higher interest rate, the Last Out portion is at a greater risk of loss.

&nbsp;&nbsp;&nbsp;&nbsp;(11) As defined in the 1940 Act, the Company is deemed to be both an "Affiliated Person" and may have "Control" of this portfolio company as the Company and/or its affiliated funds collectively owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). The Company's investment in affiliates for the year ended December 31, 2025 represented $62,857,937 of Fair Value and 26.5% of Net Assets of the Company. Transactions related to investments in "Controlled/Affiliate Investments" for the year ended December 31, 2025 were as follows:

See accompanying notes.

------

[*Table of Contents*](#TOC)

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Schedule of Investments – (continued)

#### December 31, 2025

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  Portfolio Company | Type of Investment | Amount of<br> Realized Gain<br> (Loss) | Amount of<br> Interest or<br> Dividends<br> Credited to<br> Income (a) | December 31, 2024<br> Value | Gross Additions<br> (b) | Gross Reductions<br> (c) | Transfers In/(Out) of Affiliates | Amount of<br> Unrealized Gains (Loss) | December 31, 2025<br> Value |
| Arrow Home Health LLC (dba Acara Home Health) | First lien senior secured term loan | $- | $106047 | $701117 | $3570 | $(7896) | $- | $67579 | $764370 |
|  | Preferred equity securities (571,080 shares) | - | - | 151376 | - | - | - | 101049 | 252425 |
|  | Preferred equity securities (56,005 shares) | - | - | 112010 | - | - | - | - | 112010 |
| Capone Holdings JV, LLC (dba LaSalle Staffing) | Preferred equity securities (4,000,000 shares) | - | - | 6700000 | - | - | - | (606667) | 6093333 |
| Caregility Corporation | First lien senior secured term loan | - | 220754 | 2438069 | 192525 | - | - | (49291) | 2581303 |
|  | Preferred equity securities (151,018 shares) | - | - | 1188605 | 429779 | - | - | (974714) | 643670 |
|  | Preferred equity securities (446,689 shares) | - | - | 4368416 | - | - | - | 364272 | 4732688 |
|  | Warrants (267,801 units) | - | - | - | - | - | - | - | - |
|  | Senior secured notes (0 units) | - | - | 341103 | 88677 | (429780) | - | - | - |
| Delva Master Holdings | First lien senior secured term loan | - | - | - | 901698 | - | - | (50767) | 850931 |
|  | Preferred equity securities (1,636 shares) | - | - | - | 4386820 | - | - | 226398 | 7905825 |
|  | Warrants and other equity securities (10,493 units) | - | - | - | 201111 | - | - | - | - |
|  | Warrants and other equity securities (1,354 units) | - | - | - | 3091496 | - | - | - | - |
| Lasalle Staffing, LLC | First lien senior secured term loan | - | 942610 | 7287039 | 22717 | (100000) | - | (58971) | 7150785 |
| Microf, LLC | Senior Unsecured Note | - | (18658) | 3427073 | 287760 | (18982) | - | 67980 | 3763831 |
|  | Preferred equity securities (0 shares) | - | - | - | - | - | - | - | - |
| MPUSA, LLC (dba Mission) | First lien senior secured term loan | - | 31136 | 1448543 | 232297 | (11843) | - | 43243 | 1712240 |
|  | Preferred equity securities (69 shares) | - | - | - | - | - | - | - | - |
|  | Preferred equity securities (88 shares) | - | - | 1782334 | - | - | - | (86856) | 1695478 |
| Uncle John's Pride, LLC | First lien senior secured term loan | - | 796743 | 6999302 | 52303 | (1818313) | - | (117077) | 5116215 |
|  | First lien senior secured term loan | - | 170635 | - | 1758680 | (18108) | - | - | 1740572 |
| UJP Acquisition, LLC (dba Uncle John's Pride) | Warrants and other equity securities (127,215 shares) | - | - | 76329 | - | - | - | (46542) | 29787 |
|  | Preferred equity securities (2,829,787 shares) | - | - | 4532872 | - | - | - | 433405 | 4966277 |
| USBid Inc. | First lien senior secured term loan | - | 103675 | 2240638 | 259511 | (84897) | - | 184277 | 2599529 |
| USBid Inc. | Warrants and other equity securities (204 shares) | - | - | - | - | - | - | - | - |
| USBid Inc. - Class A Units | Preferred equity securities (2,813 shares) | - | - | - | - | - | - | - | - |
| USBid Inc. - Class C Units | Preferred equity securities (9,375 shares) | - | - | - | - | - | - | - | - |
| USBid Inc. - Class C2 Units | Preferred equity securities (600,000 shares) | - | - | 504000 | - | - | - | 51469 | 555469 |
| USBid Inc. - Class C3 Units | Preferred equity securities (2,400,000 shares) | - | - | 432000 | - | - | - | 723469 | 1155469 |
| Watt Acquisition, LLC | First lien senior secured term loan | - | 300849 | 2430200 | 134362 | (1068129) | - | 128653 | 1625086 |
| Watt Contracting Holdings, LLC | Preferred equity securities (4,439 shares) | - | - | 3519772 | 1064066 | - | - | 2676462 | 7260300 |
|  | Warrants and other equity securities (100,408 shares) | - | - | - | - | - | - | - | - |
| Total Affiliate Investments |  | $- | $2653791 | $50680798 | $13107372 | $(3557948) | $0 | $3077371 | $63307593 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Represents the total amount of interest, fees or dividends credited to income for the portion of the period an investment was included in the Affiliate category.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Gross additions include increase in the cost basis of investments resulting from purchases, PIK interest or amortization of original issue discount.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

Se accompanying notes.

------

[*Table of Contents*](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;(12) Ownership of certain equity investments may occur through a holding company or partnership.

&nbsp;&nbsp;&nbsp;&nbsp;(13) Investment contains a fixed rate structure.

&nbsp;&nbsp;&nbsp;&nbsp;(14) The Company has received 46 units of incentive shares which have no Cost or Fair Value as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(15) Interest disclosed reflects the contractual rate of the First Out tranche under the AAL.

&nbsp;&nbsp;&nbsp;&nbsp;(16) The interest rate on these loans is subject to 1 month SOFR, which was 3.69% as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(17) The interest rate on these loans is subject to 3 month SOFR, which was 3.65% as of December 31, 2025.**

&nbsp;&nbsp;&nbsp;&nbsp;(18) Positions have an aggregate unfunded commitment of $6,794,311 in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 11 "Commitments, Contingencies and Risks" in the accompanying notes to
 the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;(19) The investment
 is on non-accrual status. See Note 2 "Significant Accounting Policies".

&nbsp;&nbsp;&nbsp;&nbsp;(20) The
 investment includes the fair value and amortized cost of 1,015 shares of common equity issued in conjunction with the
 preferred equity.

&nbsp;&nbsp;&nbsp;&nbsp;(21) Investment
 is held by a subsidiary of the Company. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company's wholly-owned subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;(22) The
 investment does not accrue PIK for the debt or equity investment as of December 31, 2025. See Note 2 "Significant Accounting Policies".

&nbsp;&nbsp;&nbsp;&nbsp;(23) Maturity
 date is under on-going negotiations with the portfolio company and other lenders, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;(24) All
 investments are non-income producing unless otherwise indicated.

&nbsp;&nbsp;&nbsp;&nbsp;(25) The Company
 has determined the indicated investments are non-qualifying assets under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying assets unless, at the time such acquisition is made,
 qualifying assets represent at least 70% of the Company's total assets.

&nbsp;&nbsp;&nbsp;&nbsp;(26) The
 interest rate on these loans is subject to 6 month SOFR, which was 3.57% as of December 31, 2025.

See accompanying notes.

------

[*Table of Contents*](#TOC)

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP. Consolidated Schedule of Investments December 31, 2024

**---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  Portfolio Company (1)(2)(3)(4)(5)(6) | Footnotes | Spread Above Index (7) | Interest Rate | Acquisition <br> Date | Maturity | Principal,Shares, <br> Units | Amortized Cost(8) | Fair Value (9) | % of Net Assets |
|  Investments |  |  |  |  |  |  |  |  |  |
|  Non-controlled/non-affiliate investments  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; First lien senior secured term loan |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Consolidated Machine & Tool Holdings, LLC | (17)(19)(22) | S+11.01% | 15.32% | 1/15/2020 | 1/15/2025 | 6092878 | $5946311 | $5431800 | 2.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Machine & Tool Holdings, LLC | (17)(19)(22) | S+12.01%  | 16.32%  | 1/19/2023 | 1/15/2025 | 1294243 | 1263109 | 1153818 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Machine & Tool Holdings, LLC  | (13)(19)(22) |  | 20.00% PIK | 11/22/2023 | 1/15/2025 | 708154 | 697699 | 708154 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Machine & Tool Holdings, LLC  | (13)(19) |  | 11.00% | 5/22/2024 | 6/30/2025 | 885615 | 869176 | 777659 | 0.3 |
|  |  |  |  |  |  | 8980890 | 8776295 | 8071431 | 3.4  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chemicals |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Douglas Products and Packaging Company, LLC | (10)(16) | S+6.90% | 11.23%  | 9/20/2023  | 9/20/2028 | 14812500 | 14623342 | 14812499 | 6.2 |
|  |  |  |  |  |  | 14812500 | 14623342 | 14812499 | 6.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Services & Supplies |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swyft AcquireCo LLC (dba Swyft Filings) | (15)(16) | S+2.75% | 7.08%  | 12/20/2021 | 12/20/2027 | 292443 | 291514 | 288290 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swyft AcquireCo LLC (dba Swyft Filings) | (10)(16) | S+5.50% | 9.83%  | 12/20/2021 | 12/20/2027 | 3682383 | 3643596 | 3425353 | 1.4 |
|  |  |  |  |  |  | 3974826 | 3935110 | 3713643 | 1.5 |
| &nbsp;&nbsp;&nbsp; Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; DCCM, LLC  | (17) | S+6.76% Cash + 1.00% PIK | 11.07% Cash + 1.00% PIK | 8/6/2021 | 12/30/2026 | 18148579 | 17949974 | 18232063 | 7.5 |
| &nbsp;&nbsp;&nbsp; Fremont-Wright, LLC  | (16) | S+9.10% | 13.43% | 12/2/2020 | 6/30/2026 | 4155709 | 4155654 | 4155709 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kelso Industries  | (17)(18) | S+5.75% | 10.06% | 12/31/2024 | 12/30/2029 | 13000000 | 12740177 | 12740177 | 5.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MechanAir, LLC  | (17) | S+10.80% | 10.57% Cash + 4.53% PIK | 9/2/2021 | 9/2/2026 | 13203004 | 13072674 | 13203004 | 5.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MechanAir, LLC  | (13) | -  | 18.00% PIK | 12/15/2023 | 9/2/2026 | 509104 | 509104 | 504726 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Versar Inc.  | (10)(17) | S+8.10% | 12.41% | 8/4/2023 | 8/4/2028 | 10000000 | 9658174 | 9996000 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vertical Mechanical Group, LLC  | (10)(17) | S+7.76% | 12.07% | 5/12/2023 | 5/12/2028 | 7428571 | 7234557 | 7428571 | 3.1 |
|  |  |  |  |  |  | 66444967 | 65320314 | 66260250 | 27.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributors  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48forty Intermediate Holdings, Inc.  | (16) | S+5.10% PIK + 2.00% Cash  | 9.43% PIK + 2.00% Cash  | 10/11/2022  | 11/30/2029  | 14817041 | 14323723 | 13163459 | 5.5 |
|  |  |  |  |  |  | 14817041 | 14323723 | 13163459 | 5.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversified Telecommunication Services  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gridsource Incorporated, LLC  | (17) | S+8.50% Cash + 2.00% PIK  | 12.81% Cash + 2.00% PIK  | 12/16/2022  | 3/9/2028  | 14104180 | 13779867 | 13894028 | 5.8 |
|  |  |  |  |  |  | 14104180 | 13779867 | 13894028 | 5.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electrical Equipment  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Masterwork Electronics, Inc.  | (17)(19)(22) | S+7.65% | 11.96% PIK  | 11/17/2022 | 11/17/2027 | 8840576 | 8676598 | 5410433 | 2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Masterwork Electronics, Inc.  | (15)(17)(19)(22) | S+7.65% | 11.96% PIK | 11/17/2022 | 11/17/2027 | 521739 | 521739 | 319304 | 0.1 |
|  |  |  |  |  |  | 9362315 | 9198337 | 5729737 | 2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entertainment  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chicken Soup For The Soul, LLC  | (16)(19)(23) | S+8.60% | 12.93%  | 10/29/2021  | 3/31/2024  | 6380856  | 6380856 | 1681994 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Linden Research, Inc. (dba Linden Labs)  | (10)(17) | S+7.26% Cash + 3.25% PIK | 11.57% Cash + 3.25% PIK | 12/31/2020  | 12/31/2025  | 4702225 | 4630079 | 4702225 | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NW Entertainment, LLC  | (17) | S+7.76% | 12.07%  | 11/4/2022  | 11/4/2027  | 6235769 | 6135904 | 6175905 | 2.6 |
|  |  |  |  |  |  | 17318850 | 17146839 | 12560124 | 5.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Healthcare Providers & Services  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; BB-HH Platform, Inc. (dba Preferred Care Home Health)  | (10)(17) | S+7.00% Cash + 1.50% PIK | 11.31% Cash + 1.50% PIK | 5/16/2023 | 5/16/2028 | 6791230 | 6694095 | 6791230 | 2.8 |
| IPA Intermediate Co., LLC (dba Integrated Pain Associates)  | (17) | S+8.01% | 12.32% | 1/9/2023 | 1/9/2028 | 11096086 | 10864449 | 11096086 | 4.6 |
| &nbsp;&nbsp;&nbsp; Klein Hersh, LLC  | (10)(17) | S+7.76% | 4.49% Cash | 4/27/2022 | 4/27/2027 | 17468922 | 16895893 | 14530649 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nurses Staffing, LLC (dba Nurses 24/7)  | (17) | S+7.00% Cash + 3.00% PIK | 11.31% Cash + 3.00% PIK | 5/26/2023 | 8/26/2028 | 5787937 | 5684377 | 5665232 | 2.4 |
|  |  |  |  |  |  | 41144175 | 40138814 | 38083197 | 15.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Range NYC, LLC (dba Five Iron Golf)  | (17)(18) | S+7.61% | 11.92% | 9/15/2022 | 9/15/2027 | 4928571 | 4819417 | 4876329 | 2.0 |
|  |  |  |  |  |  | 4928571 | 4819417 | 4876329 | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Household Durables  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SkyBell Technologies, Inc.  | (19)(22) | 0.00% Cash + 0.00% PIK  | 0.00% Cash + 0.00% PIK  | 12/13/2019 | 12/13/2024 | 4597307 | 4534757 | 3057209 | 1.3 |
|  |  |  |  |  |  | 4597307 | 4534757 | 3057209 | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Household Products  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHG Parent Holding LLC (dba Coop Home Goods)  | (10)(17) | S+8.26% | 12.57%  | 6/18/2021 | 6/18/2026 | 4373103 | 4339971 | 4373103 | 1.8 |
|  |  |  |  |  |  | 4373103 | 4339971 | 4373103 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IT Services  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; CSI IT, LLC (dba Consulting Solutions)  | (17) | S+10.76% | 15.07% | 1/29/2021 | 1/29/2026 | 12558929 | 12433640 | 12558929 | 5.2 |
|  |  |  |  |  |  | 12558929 | 12433640 | 12558929 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Machinery |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Texas Contract Manufacturing Group, Inc. | (17) | S+12.11% | 16.42% | 4/27/2022 | 4/27/2027 | 4605541 | 4547261 | 3968595 | 1.6 |
|  |  |  |  |  |  | 4605541 | 4547261 | 3968595 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Media  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PadSquad, LLC  | (10)(17) | S+5.50% | 9.81%  | 3/30/2022 | 3/30/2027 | 2704113 | 2676832 | 2704113 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trailer Park Group Holdings LLC  | (10)(17) | S+6.76% + 1.50% PIK | 11.07% Cash + 1.50% PIK | 8/2/2021 | 8/2/2026 | 14790995 | 14572105 | 14517362 | 6.0 |
|  |  |  |  |  |  | 17495108 | 17248937 | 17221475 | 7.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal Products  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japonesque, LLC  | (10)(17) | S+8.18% | 12.49%  | 11/23/2021 | 11/23/2026 | 4404301 | 4360968 | 4404301 | 1.8 |
|  |  |  |  |  |  | 4404301 | 4360968 | 4404301 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional Services  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jefferson Consulting Group, LLC | (10)(17) | S+5.75% | 10.06% | 7/1/2024 | 7/1/2029 | 8461538 | 8303804 | 8303804 | 3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NSC Technologies, LLC | (10)(17) | S+8.26% | 12.57% | 4/26/2019 | 10/26/2026 | 4148472 | 4121315 | 4117773 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PQT Ayaquhs, LLC (dba WWC Global) | (17) | S+7.26% | 11.78% | 8/1/2022 | 8/1/2027 | 7409274 | 7311194 | 7483367 | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Qualified Digital, LLC | (17)(18) | S+7.00% | 11.31% | 7/30/2024 | 7/30/2029 | 9097143 | 8793352 | 8793352 | 3.7 |
|  |  |  |  |  |  | 29116427 | 28529665 | 28698296 | 11.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Clearview Systems, LLC (dba Rip-It) | (10)(17)  | S+10.65% | 14.96% Cash + 6.50% PIK  | 10/11/2022 | 10/10/2027 | 6703118 | 6609366 | 6703118 | 2.8 |
|  |  |  |  |  |  | 6703118 | 6609366 | 6703118 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading Companies & Distributors  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ambient Enterprises Holdco LLC  | (17)(18) | S+5.75% | 10.07% | 12/31/2024 | 6/30/2030 | 6436872 | 6327097 | 6327097 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ambient Enterprises Holdco LLC | (17)(18) | S+5.75% | 10.07% | 12/31/2024 | 6/30/2030 | 1789397 | 1758861 | 1758861 | 0.7 |
|  |  |  |  |  |  | 8226269 | 8085958 | 8085958 | 3.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transportation Infrastructure |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TCP Acquisition, LLC (dba HighStar Traffic) | (17) | S+7.50% | 11.81%  | 7/26/2022 | 7/26/2027 | 10339453 | 10193719 | 10339453 | 4.3 |
|  |  |  |  |  |  | 10339453 | 10193719 | 10339453 | 4.3 |
| &nbsp;&nbsp;&nbsp; Total first lien senior secured term loan |  |  |  |  |  |  | $292946300 | $280575134 | 116.4% |

---

See accompanying notes.

------

[*Table of Contents*](#TOC)

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Schedule of Investments – (continued)

#### December 31, 2024

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Portfolio Company (1)(2)(3)(4)(5)(6) | Footnotes | Spread Above Index (7) | Interest Rate | Acquisition Date | Maturity | Principal, Shares, <br> Units | Amortized Cost (8) | Fair Value (9) | % of Net Assets |
| &nbsp;&nbsp;&nbsp; Second lien senior secured loan  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional Services  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CorTech, LLC  | (17) | S+6.35% | 10.66%  | 3/13/2020 | 9/30/2025 | 6155951 | $6148061 | $6034048 | 2.5% |
|  |  |  |  |  |  | 6155951 | 6148061 | 6034048 | 2.5 |
| &nbsp;&nbsp;&nbsp; Total second lien term loan |  |  |  |  |  |  | 6148061 | 6034048 | 2.5 |
| &nbsp;&nbsp;&nbsp; Senior unsecured notes  | (24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electrical Equipment |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HH Masterwork Intermediate, Inc. | (19)(22) | - | 17.00% PIK | 11/17/2022 | 5/17/2028 | 2155820 | 2033098 | - | 0.0 |
|  |  |  |  |  |  | 2155820 | 2033098 | - | 0.0 |
| &nbsp;&nbsp;&nbsp; Total senior unsecured notes |  |  |  |  |  |  | 2033098 | - | 0.0 |
| &nbsp;&nbsp;&nbsp; Preferred equity securities | (12)(24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Services and Supplies |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swyft Filings Holdings, LLC | (13)(20)(21) | - | 8.00% PIK | 12/20/2021 | - | 192444 | 183612 | 194996 | 0.1 |
|  |  |  |  |  |  | 192444 | 183612 | 194996 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MechanAir Holdings, LLC | (13)(21) | - | 13.50% PIK | 9/2/2021 | - | 1704 | 1703499 | 2193365 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vertical Mechanical Group Holdings, LLC | (21) | - | - | 5/12/2023 | - | 185714 | 1857143 | 4828571 | 2.0 |
|  |  |  |  |  |  | 187418 | 3560642 | 7021936 | 2.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversified Telecommunication Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gridsource Holdings, LLC | (21) | - | 8.00% PIK | 3/9/2023 | - | 3959977 | 799597 | 907386 | 0.4 |
|  |  |  |  |  |  | 3959977 | 799597 | 907386 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entertainment |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NW Entertainment, LLC | (21) | - | 10.00% PIK | 11/4/2022 | - | 1183 | 1134428 | 1385764 | 0.6 |
|  |  |  |  |  |  | 1183 | 1134428 | 1385764 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Healthcare Providers & Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IPA Investors, LP (dba Integrated Pain Associates) | (21) | - | 8.00% PIK | 1/9/2023 | - | 1953 | 2029287 | 1918048 | 0.8 |
|  |  |  |  |  |  | 1953 | 2029287 | 1918048 | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Media |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Channel Factory Holdings, LLC | (13)(21) | - | 5.00% Cash + 5.00% PIK | 8/27/2020 | - | 2381867 | 2442592 | 5552308 | 2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PadSquad Holdings, LLC | (13)(21) | - | 6.00% Cash + 6.00% PIK | 3/30/2022 | - | 720767 | 1964204 | 3379270 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trailer Park Group Holdings, LLC Class A-1 Units | (13)(21) | - | 15.00% PIK | 12/19/2023 | - | 40888 | 73599 | 110402 | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trailer Park Group Holdings LLC - Class A Units | (13)(21) | - | 8.00% PIK | 8/2/2021 | - | 371822 | 367108 | 662587 | 0.3 |
|  |  |  |  |  |  | 3515344 | 4847503 | 9704567 | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hometown Holdings JV, LLC (dba BWG Strategy) | (13)(21) | - | - | 12/24/2020 | - | 666667 | 659761 | 877600 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JCFV Holdings, LLC | (21) | - | - | 7/1/2024 | - | 415916 | 1538462 | 1538462 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PQT Ayaquhs, LLC (dba WWC Global) | (13)(21) | - | 10.50% PIK | 8/1/2022 | - | 5774 | 1064516 | 4528036 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SPC QD SM, LP | (21) | - | - | 7/30/2024 | - | 38 | 2000000 | 2000000 | 0.8 |
|  |  |  |  |  |  | 1088395 | 5262739 | 8944098 | 3.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Software |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PureCars Technologies, LLC | (13)(21) | - | 8.00% PIK | 4/17/2019 | - | 592 | 267013 | 234876 | 0.1 |
|  |  |  |  |  |  | 592 | 267013 | 234876 | 0.1 |
| &nbsp;&nbsp;&nbsp; Total preferred equity securities |  |  |  |  |  |  | 18084821 | 30311671 | 12.5 |
| &nbsp;&nbsp;&nbsp; Warrants and other equity securities  | (12)(24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Machine & Tool Holdings, LLC  | (14)(21) | - | - | 1/15/2020 | - | 176 | 142485 | - | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Machine & Tool Holdings, LLC  |  | - | - | 1/15/2020 | - | 1178 | - | 32148 | 0.0 |
|  |  |  |  |  |  | 1354 | 142485 | 32148 | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DCCM, LLC | (21) | - | - | 8/6/2021 | - | 897 | 939949 | 3501210 | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fremont-Wright, LLC |  | - | - | 12/2/2020 | - | 2 | - | 972068 | 0.4 |
|  |  |  |  |  |  | 899 | 939949 | 4473278 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electrical Equipment |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HH Masterwork Intermediate, Inc. | (19) | - | - | 11/17/2022 | - | 190019 | - | - | 0.0 |
|  |  |  |  |  |  | 190019 | - | - | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entertainment |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LRI Holdco, LLC (dba Linden Labs) | (21) | - | - | 12/31/2020 | - | 2 | 43478 | 371747 | 0.2 |
|  |  |  |  |  |  | 2 | 43478 | 371747 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Healthcare Providers & Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Klein Hersh, LLC |  | - | - | 4/27/2022 | - | 1003 | - | - | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nurses 24/7 Holdings, LLC | (21) | - | - | 5/26/2023 | - | 182 | 419877 | 196856 | 0.1 |
|  |  |  |  |  |  | 1185 | 419877 | 196856 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Range NYC, LLC (dba Five Iron Golf) |  | - | - | 9/15/2022 | - | 21210 | 71599 | 34623 | 0.0 |
|  |  |  |  |  |  | 21210 | 71599 | 34623 | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Household Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHG Parent Holding LLC (dba Coop Home Goods) | (21) | - | - | 6/18/2021 | - | 535714 | 535714 | 617857 | 0.3 |
|  |  |  |  |  |  | 535714 | 535714 | 617857 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Machinery |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Texas Contract Manufacturing Group, Inc. |  | - | - | 4/27/2022 | - | 1602 | - | 249355 | 0.1 |
|  |  |  |  |  |  | 1602 | - | 249355 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NSC Holdings, LLC | (21) | - | - | 4/26/2019 | - | 111 | 271262 | 290774 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PQT Ayaquhs, LLC (dba WWC Global) |  | - | - | 8/1/2022 | - | 645 | - | 353135 | 0.1 |
|  |  |  |  |  |  | 756 | 271262 | 643909 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Software |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proactive Dealer Holdings Parent, LLC | (21) | - | - | 6/10/2024 | - | 445 | 730271 | 730275 | 0.4 |
|  |  |  |  |  |  | 445 | 730271 | 730275 | 0.4 |
| &nbsp;&nbsp;&nbsp; Total warrants and other equity securities |  |  |  |  |  |  | 3154635 | 7350048 | 3.2 |
| &nbsp;&nbsp;&nbsp; Fund investments |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversified Financials |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Madryn Select Opportunities, LP | (18) | - | - | 1/4/2022 | - | 2855855 | 2898305 | 2688619 | 1.1 |
|  |  |  |  |  |  | 2855855 | 2898305 | 2688619 | 1.1 |
| &nbsp;&nbsp;&nbsp; Total fund investments |  |  |  |  |  |  | 2898305 | 2688619 | 1.1 |
| &nbsp;&nbsp;&nbsp; Total non-controlled/non-affiliate investments |  |  |  |  |  |  | $325265220 | $326959520 | 135.7% |

---

See accompanying notes.

------

[*Table of Contents*](#TOC)

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Schedule of Investments – (continued)

#### December 31, 2024

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Portfolio Company (1)(2)(3)(4)(5)(6) | Footnotes | Spread Above Index (7) | Interest Rate | Acquisition Date | Maturity | Principal, Shares, <br> Units | Amortized Cost (8) | Fair Value (9) | % of Net Assets |
| Controlled/affiliate investments |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; First lien senior secured term loan |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Watt Acquisition, LLC | (10)(11)(17) | S+14.25% | 12.99% Cash + 5.57% PIK | 4/15/2022 | 4/15/2027 | 2574092 | $2548389 | $2430200 | 1.0% |
|  |  |  |  |  |  | 2574092 | 2548389 | 2430200 | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversified Telecommunication Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Caregility Corporation | (11)(17) | S+9.26% | 7.00% Cash + 6.57% PIK | 12/29/2021 | 1/31/2025 | 2443445 | 2313620 | 2438069 | 1.0 |
|  |  |  |  |  |  | 2443445 | 2313620 | 2438069 | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Uncle John's Pride, LLC | (11)(16) | S+10.11% | 14.44%  | 3/31/2022 | 3/31/2027 | 6930002 | 6832506 | 6999302 | 2.9 |
|  |  |  |  |  |  | 6930002 | 6832506 | 6999302 | 2.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Healthcare Providers & Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Arrow Home Health, LLC (dba Acara Home Health) | (11)(17) | S+8.50% | 12.81%  | 3/19/2021 | 3/19/2026 | 797086 | 782429 | 701117 | 0.3 |
|  |  |  |  |  |  | 797086 | 782429 | 701117 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leisure Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MPUSA, LLC (dba Mission) | (11)(17) | S + 8.26% Cash + 3.00% PIK | 12.57% Cash + 3.00% PIK | 12/9/2021 | 12/9/2026 | 1570577 | 1560737 | 1448543 | 0.6 |
|  |  |  |  |  |  | 1570577 | 1560737 | 1448543 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lasalle Staffing, LLC | (10)(11)(16) | S+6.86% | 11.19% | 2/15/2022 | 2/15/2027 | 7250785 | 7154058 | 7287039 | 3.0 |
|  |  |  |  |  |  | 7250785 | 7154058 | 7287039 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading Companies & Distributors |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USBid Inc. | (10)(11)(17) | S+7.26% | 11.57% | 11/3/2022 | 11/3/2027 | 2484904 | 2450388 | 2240638 | 0.9 |
|  |  |  |  |  |  | 2484904 | 2450388 | 2240638 | 0.9 |
| &nbsp;&nbsp;&nbsp; Total first lien senior secured term loan |  |  |  |  |  |  | 23642127 | 23544908 | 9.7 |
| &nbsp;&nbsp;&nbsp; Senior secured notes |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversified Telecommunication Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Caregility Corporation | (13) | 8.00%  | 8.00% | 7/3/2023 | - | 341103 | 341103 | 341103 | 0.1 |
|  |  |  |  |  |  | 341103 | 341103 | 341103 | 0.1 |
| &nbsp;&nbsp;&nbsp; Total senior secured notes |  |  |  |  |  |  | 341103 | 341103 | 0.1 |
| &nbsp;&nbsp;&nbsp; Senior unsecured notes | (24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Finance |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Microf, LLC | (11)(19) | S+10.85% | 15.16% | 3/29/2019 | 6/30/2025 | 3427073 | 3427073 | 3427073 | 1.4 |
|  |  |  |  |  |  | 3427073 | 3427073 | 3427073 | 1.4 |
| &nbsp;&nbsp;&nbsp; Total senior unsecured notes |  |  |  |  |  |  | 3427073 | 3427073 | 1.4 |
| &nbsp;&nbsp;&nbsp; Preferred equity securities | (12)(24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Watt Contracting Holdings, LLC | (11)(21) | - | 15.00% PIK | 4/15/2022 | - | 3375 | 3316130 | 3519772 | 1.5 |
|  |  |  |  |  |  | 3375 | 3316130 | 3519772 | 1.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Finance |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Microf, LLC | (11)(19) | - | 15.00% PIK | 5/5/2020 | - | - | - | - | 0.0 |
|  |  |  |  |  |  | - | - | - | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversified Telecommunication Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Caregility Corporation - Series A Units | (11)(13) | - | 8.00% PIK | 12/31/2022 | - | 151018 | 1646318 | 1188605 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Caregility Corporation - Series B Units | (11)(13) | - | 8.00% PIK | 7/3/2023 | - | 446889 | 3591494 | 4368416 | 1.8 |
|  |  |  |  |  |  | 597907 | 5237812 | 5557021 | 2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UJP Acquisition, LLC (dba Uncle John's Pride) | (11)(13)(21) | - | 8.00% PIK | 3/31/2022 | - | 2829787 | 2829787 | 4532872 | 1.9 |
|  |  |  |  |  |  | 2829787 | 2829787 | 4532872 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Healthcare Providers & Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Arrow Home Health, LLC (dba Acara Home Health) - Class A Units | (11)(21) | - | - | 3/19/2021 | - | 571080 | 564321 | 151376 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Arrow Home Health, LLC (dba Acara Home Health) - Class 1 Units | (11)(13)(21) | - | - | 11/13/2023 | - | 56005 | 56005 | 112010 | 0.0 |
|  |  |  |  |  |  | 627085 | 620326 | 263386 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leisure Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TS-MP, LLC (dba Mission) - Class A-1 | (21) | - | - | 12/9/2021 | - | 69 | 1928409 | - | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TS-MP, LLC (dba Mission) - Class AA-1 | (21) | - | - | 12/10/2024 | - | 88 | 1960641 | 1782334 | 0.7 |
|  |  |  |  |  |  | 157 | 3889050 | 1782334 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capone Holdings JV, LLC (dba LaSalle Staffing) | (11)(21) | - | - | 2/15/2022 | - | 4000000 | 4000000 | 6700000 | 2.8 |
|  |  |  |  |  |  | 4000000 | 4000000 | 6700000 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading Companies & Distributors |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USBid Parent, LLC - Class A | (11) | - | - | 11/3/2022 | - | 2813 | 2812500 | - | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USBid Parent, LLC - Class C | (11) | - | 10.00% PIK | 11/2/2023 | - | 3009375 | 2351074 | 936000 | 0.4 |
|  |  |  |  |  |  | 3012188 | 5163574 | 936000 | 0.4 |
| &nbsp;&nbsp;&nbsp; Total preferred equity securities |  |  |  |  |  |  | 25056679 | 23291385 | 9.7 |
| &nbsp;&nbsp;&nbsp; Warrants and other equity securities | (12)(24) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction & Engineering |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Watt Contracting Holdings, LLC | (11)(21) | - | - | 4/15/2022 | - | 295 | - | - | 0.0 |
|  |  |  |  |  |  | 295 | - | - | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversified Telecommunication Services |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Caregility Corporation | (11) | - | - | 12/29/2021 | - | 267801 | 443392 | - | 0.0 |
|  |  |  |  |  |  | 267801 | 443392 | - | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food Products |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UJP Acquisition, LLC (dba Uncle John's Pride) | (11)(21) | - | - | 3/31/2022 | - | 127215 | - | 76329 | 0.0 |
|  |  |  |  |  |  | 127215 | - | 76329 | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading Companies & Distributors |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USBid Parent, LLC | (11) | - | - | 11/3/2022 | - | 204 | - | - | 0.0 |
|  |  |  |  |  |  | 204 | - | - | 0.0 |
| &nbsp;&nbsp;&nbsp; Total warrants and other equity securities |  |  |  |  |  |  | 443392 | 76329 | 0.0 |
| &nbsp;&nbsp;&nbsp; Total controlled/affiliate investments |  |  |  |  |  |  | 52910374 | 50680798 | 20.9 |
| TOTAL INVESTMENTS |  |  |  |  |  |  | $378175594 | $377640318 | 156.6% |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) All of the Company's investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the "1940 Act"), unless otherwise noted. All of the Company's investments are issued by U.S. portfolio companies unless otherwise noted.

&nbsp;&nbsp;&nbsp;&nbsp;(2) All investments are non-controlled/non-affiliated investments as defined by the 1940 Act, unless otherwise noted. The 1940 Act classifies investments based on the level of control that the Company maintains in a particular portfolio company.

&nbsp;&nbsp;&nbsp;&nbsp;(3) All investments are co-investments made with the Company's affiliates in accordance with the terms of the exemptive relief that the Company received from the U.S. Securities and Exchange Commission (the "SEC"), unless otherwise noted. See Note 6 "Transactions with Related Parties" in the accompanying notes to the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Unless otherwise indicated, all investments are considered Level 3 assets.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Unless otherwise indicated, the Company's portfolio companies are pledged as collateral supporting the amounts outstanding under the Secured Credit Facility (as defined herein).

&nbsp;&nbsp;&nbsp;&nbsp;(6) Except as otherwise noted, all of the Company's portfolio company investments are subject to legal restrictions on sales.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Loan contains a variable rate structure and may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate ("SOFR" or "S") or an alternate base rate which can include the Federal Funds Effective Rate or the Prime Rate, at the borrower's option, and which reset periodically based on the terms of the loan agreement. Interest rates subject to SOFR are typically accompanied by a Credit Spread Adjustment ("CSA").

&nbsp;&nbsp;&nbsp;&nbsp;(8) The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.

&nbsp;&nbsp;&nbsp;&nbsp;(9) Because there is no readily available market value for these investments, the fair value of each of these investments is determined in good faith using significant unobservable inputs by the Company's board of directors (the "Board") as required by the 1940 Act. See Note 4 "Fair Value Measurements" in the accompanying notes to the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;(10) The Company categorized its unitranche loans as First Lien Senior Secured Loans. The First Lien Senior Secured Loan is comprised of two components: a first out tranche ("First Out") and last out tranche ("Last Out"). The Company syndicates the First Out tranche and retains the Last Out tranche. The First Out and Last Out tranches have the same maturity date. Interest disclosed reflects the contractual rate of First Lien Senior Secured Loan. The First Out tranche has priority as to the Last Out tranche with respect to payments of principal, interest and any amounts due thereunder. The Company may be entitled to receive additional interest as a result of the Agreement Among Lenders ("AAL") entered into with the First Out lender. In exchange for the higher interest rate, the Last Out portion is at a greater risk of loss.

&nbsp;&nbsp;&nbsp;&nbsp;(11) As defined in the 1940 Act, the Company is deemed to be both an "Affiliated Person" and may have "Control" of this portfolio company as the Company and/or its affiliated funds collectively owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). The Company's investment in affiliates for the year ended December 31, 2024 represented $50,680,798 of Fair Value and 21.0% of Net Assets of the Company. Transactions related to investments in "Controlled/Affiliate Investments" for the year ended December 31, 2024 were as follows:

See accompanying notes.

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STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Consolidated Schedule of Investments – (continued)

#### December 31, 2024

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Portfolio Company | Type of Investment | Amount of <br> Realized Gain <br> (Loss) | Amount of Interest or <br> Dividends Credited to <br> Income (a) | December 31, <br> 2023 Value | Gross <br> Additions (b) | Gross <br> Reductions (c) | Transfers In/(Out) of Affiliates | Amount of <br> Unrealized<br> Gains (Loss) | December 31, 2024 <br> Value |
| Arrow Home Health LLC (dba Acara Home Health) | First lien senior secured term loan | $- | $97755 | $748782 | $2409 | $(1027) | $- | $(49047) | $701117 |
|  | Preferred equity securities (571,080 shares) | - | - | 202097 | - | - | - | (50721) | 151376 |
|  | Preferred equity securities (56,005 shares) | - | - | 112010 | - | - | - | - | 112010 |
| Capone Holdings JV, LLC (dba LaSalle Staffing) | Preferred equity securities (4,000,000 shares) | - | 206284 | - | - | - | 6200800 | 499200 | 6700000 |
| Caregility Corporation | First lien senior secured term loan | - | 179274 | 2244216 | 405258 | (25128) | - | (186277) | 2438069 |
|  | Warrants (267,801 units) | - | - | 571189 | - | - | - | (571189) | - |
|  | Preferred equity securities (151,018 shares) | - | - | 1383250 |  | - | - | (194645) | 1188605 |
|  | Preferred equity securities (3,833,757 shares) | - | - | 4108869 | - | - | - | 259547 | 4368416 |
|  | Senior secured notes (320,385 units) | - | - | - | 341103 | - | - | - | 341103 |
| Lasalle Staffing, LLC | First lien senior secured term loan | - | 696525 | - | 114945 | (268139) | 7474073 | (33840) | 7287039 |
| Microf, LLC | Senior unsecured notes | - | 360523 | - | - | - | 3427073 | - | 3427073 |
|  | Preferred equity securities (164,332 shares) | - | - | - | - | - | 318483 | (318483) | - |
| MPUSA, LLC (dba Mission) | First lien senior secured term loan |  | 355288 | - | - | (475786) | 1726068 | 198261 | 1448543 |
|  | Preferred equity securities (69 shares) |  | - | - | - | - | - | - | - |
|  | Preferred equity securities (88 shares) |  | - | - | 1960641 | - | - | (178307) | 1782334 |
| Uncle John's Pride, LLC | First lien senior secured term loan | - | 864559 | - | 12730 | (193514) | 7142992 | 37094 | 6999302 |
| UJP Acquisition, LLC (dba Uncle John's Pride) | Warrants and other equity securities (127,215 shares) | - | - | - | - | - | 47064 | 29265 | 76329 |
|  | Preferred equity securities (2,829,787 shares) | - | - | - | - | - | 4252128 | 280744 | 4532872 |
| USBid Inc. | First lien senior secured term loan | - | 62299 | - | 1149839 | (4826396) | 268292 | 5648903 | 2240638 |
| USBid Inc. | Warrants and other equity securities (204 shares) |  |  |  |  |  |  |  |  |
| USBid Inc. - Class A Units | Preferred equity securities (2,813 shares) |  |  |  |  |  |  |  |  |
| USBid Inc. - Class C Units | Preferred equity securities (3,009,375 shares) |  |  |  |  |  |  |  |  |
| USBid Inc. - Class C2 Units | Preferred equity securities (600,000 shares) | - | - | - | - | - | - | 504000 | 504000 |
| USBid Inc. - Class C3 Units | Preferred equity securities (24,000,000 shares) | - | - | - | - | - | - | 432000 | 432000 |
| Watt Acquisition, LLC | First lien senior secured term loan | - | 280497 | - | 151864 | (32533) | 2148189 | 162680 | 2430200 |
| Watt Contracting Holdings, LLC | Preferred equity securities (3,375 shares) | - | - | - | - | - | 163211 | 3356561 | 3519772 |
|  | Warrants and other equity securities (295 shares) | - | - | - | - | - | - | - | - |
| Total Affiliate Investments |  | $- | $3103004 | $9370413 | $4138789 | $(5822523) | $33168373 | $9825746 | $50680798 |

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&nbsp;&nbsp;&nbsp;&nbsp;(a) Represents the total amount of interest, fees or dividends credited to income for the portion of the period an investment was included in the Affiliate category.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Gross additions include increase in the cost basis of investments resulting from purchases, PIK interest or amortization of original issue discount.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

&nbsp;&nbsp;&nbsp;&nbsp;(12) Ownership of certain equity investments may occur through a holding company or partnership.

&nbsp;&nbsp;&nbsp;&nbsp;(13) Investment contains a fixed rate structure.

&nbsp;&nbsp;&nbsp;&nbsp;(14) The Company has received 46 units of incentive shares which have no Cost or Fair Value as of December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(15) Interest disclosed reflects the contractual rate of the First Out tranche under the AAL.

&nbsp;&nbsp;&nbsp;&nbsp;(16) The interest rate on these loans is subject to 1 month SOFR, which was 4.33% as of December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(17) The interest rate on these loans is subject to 3 month SOFR, which was 4.31% as of December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(18) Positions have an aggregate unfunded commitment of $21,455,258 in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 11 "Commitments, Contingencies and Risks" in the accompanying notes to the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;(19) The investment is on non-accrual status. See Note 2 "Significant Accounting Policies".

&nbsp;&nbsp;&nbsp;&nbsp;(20) The investment includes the fair value and amortized cost of 1,015 shares of common equity issued in conjunction with the preferred equity.

&nbsp;&nbsp;&nbsp;&nbsp;(21) Investment is held by a subsidiary of the Company. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company's wholly-owned subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;(22) The investment does not accrue PIK for the debt or equity investment as of December 31, 2024. See Note 2 "Significant Accounting Policies".

&nbsp;&nbsp;&nbsp;&nbsp;(23) Maturity date is under on-going negotiations with the portfolio company and other lenders as of December 31, 2024, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;(24) All investments are non-income producing unless otherwise indicated.

See accompanying notes.

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#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP. Notes to Consolidated Financial Statements

#### Note 1. Organization and Principal Business
Star Mountain Lower Middle-Market Capital Corp. (the "Company") is an externally managed, closed-end management investment company and has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act").

Star Mountain Credit Opportunities Fund, LP (the "Private Fund") was formed as a Delaware limited partnership on August 7, 2019 to make investments in lower middle-market companies and commenced operations on September 16, 2019. On May 14, 2021, Star Mountain Credit Opportunities Fund, LP converted to Star Mountain Lower Middle-Market Capital Corp., via a filing with the State of Delaware of a Certificate of Conversion to a Corporation.

Based on analysis of the attributes of the Star Mountain Credit Opportunities Fund, LP predecessor entity versus the Star Mountain Lower Middle-Market Capital Corp. converted entity, it was determined that Star Mountain Lower Middle-Market Capital Corp. was the accounting survivor.

Star Mountain Lower Middle-Market Capital Holdings, LLC (the "Holding Company") was formed as a Delaware limited liability company on December 13, 2023 to hold certain of the Company's investments for tax purposes. The Holding Company commenced operations on December 13, 2023.

The Company's investment objectives are to generate current income and capital appreciation. The Company seeks to achieve its investment objectives by investing primarily in privately negotiated loans and equity investments to small and medium-sized businesses ("SMBs") generally with annual revenues greater than $15 million and earnings before interest, taxes, depreciation and amortization ("EBITDA") of less than $50 million. The Company is advised by Star Mountain Fund Management, LLC ("Star Mountain Fund Management", the "Administrator" or the "Advisor"), a registered investment adviser under the Investment Advisers Act of 1940, as amended. In addition, for U.S. federal income tax purposes, the Company has elected to be treated and intends to continue to be treated as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code").

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

#### Basis of Presentation
The preparation of these consolidated financial statements is in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-K and Articles 6 and 10 of Regulation S-X. The Company is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification ("ASC") Topic 946, Financial Services – Investment Companies.

#### Basis of Consolidation
As provided under ASC Topic 946, the Company will not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the financial position and results of operations of its wholly owned subsidiary Star Mountain Lower Middle-Market Capital Holdings, LLC (the "Holding Company"). All significant intercompany transactions and balances have been eliminated in consolidation.

#### Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of December 31, 2025, and the reported revenue generated and expenses incurred during the reporting period. Actual results could differ from those estimates.

#### Fair Value of Financial Instruments
The Company applies fair value to substantially all of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurements and Disclosures ("ASC Topic 820"). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. See Note 4 for further discussion regarding the fair value measurements and hierarchy.

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ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company believes that the carrying amounts of its other financial instruments, such as cash and cash equivalents, receivables and payables approximate the fair value of such items due to the short maturity of such instruments.

Revenue Recognition

The Company's revenue recognition policies are as follows:

*Interest income*: Interest income is recorded on the accrual basis to the extent that the Company expects to collect such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt investments. For the years ended December 31, 2025, 2024 and 2023, $34,168,128, $38,415,250 and $42,447,943, respectively, of interest income, excluding PIK interest income, has been accrued as shown on the Consolidated Statements of Operations. As of December 31, 2025 and December 31, 2024, $3,410,139 and $3,887,028 of interest income is receivable, respectively, as shown on the Consolidated Statements of Assets and Liabilities.

*Payment In-Kind Income:* The Company has certain investments in its portfolio that contain a PIK provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. For loans and debt securities with contractual PIK, the Company generally will not accrue PIK interest for accounting purposes if the portfolio company valuation indicates that such PIK interest is not collectible. To maintain its ability to take a dividend paid deduction, the Company may need to pay out PIK non-cash income amounts in the form of distributions, even though the Company has not yet collected the cash. For the years ended December 31, 2025, 2024 and 2023, $3,239,542, $4,538,785 and $3,189,791, respectively, of PIK income has been accrued as shown on the Consolidated Statements of Operations.

*Non-accrual:* Loans or preferred equity securities are placed on non-accrual status when interest, PIK interest or dividend payments become 90 days or more past due, or when there is reasonable doubt that principal, interest or dividends will be collected. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Any accrued interest receivable in previous years will be written off and corresponding interest income will be reversed, as applicable. Subsequent interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management's judgment. Non-accrual loans are restored to accrual status when past due principal, interest, PIK interest or dividends are paid, and, in management's judgment are likely to remain current. Please refer to the Consolidated Schedule of Investments for non-accrual status of investments as of December 31, 2025 and December 31, 2024. As of December 31, 2025, six investments, 48forty Intermediate Holdings, Inc., Consolidated Machine & Tool Holdings, LLC, Delva Master Holdings, SkyBell Technologies, Inc., Masterworks Electronics, Inc., and Chicken Soup For The Soul, LLC are on non-accrual status. As of December 31, 2024, four investments, SkyBell Technologies, Inc., Consolidated Machine & Tool Holdings, LLC, Masterworks Electronics, Inc. and Chicken Soup For The Soul, LLC are on non-accrual status. For the year ended December 31, 2024, $870,542 of interest receivable was reversed as a result of Consolidated Machine & Tool Holdings, LLC, Masterwork Electronics, Inc, Skybell Technologies, Inc. and Chicken Soup For The Soul, LLC being on non-accrual status.

*Dividend Income:* Dividend income to be paid in-kind on equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income paid in cash is recorded on the date declared for portfolio companies. Each distribution received from limited liability company and limited partnership interests is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. For the years ended December 31, 2025, 2024 and 2023, the Company did not receive any return of capital distributions from its equity investments. For the years ended December 31, 2025, 2024 and 2023 $974,596, $1,045,339 and $1,546,675, respectively, of dividend income has been accrued as shown on the Consolidated Statements of Operations. As of December 31, 2025, December 31, 2024 and December 31, 2023, all dividend income has been received.

*Original Issue Discount:* Discounts to par on portfolio securities are accreted into income over the tenor of the instrument. Any remaining discount is accreted into income upon prepayment or redemption of the instrument and the Company then amortizes such amounts using the effective interest method as interest income over the life of the investment. The unamortized discount as of December 31, 2025 and December 31, 2024, was $4,721,160 and $6,287,447, respectively. The amount of original issue discount amortized for the years ended December 31, 2025, 2024 and 2023 was $1,857,711, $1,015,506 and $1,382,244, respectively.

*Amendment, waiver, Agency, draw and consent fees etc.:* In connection with modifying credit agreements with portfolio companies to provide additional operating or borrowing flexibility, the Company may be entitled to amendment, waiver and consent fees to compensate for the potentially enhanced credit risk. Such fees will be recorded as income on the date earned and accrued to the extent the fee is to be compensated in the form of additional principal balance. During the years ended December 31, 2025, 2024 and 2023, $1,367,017, $188,222 and $177,942, respectively, of such fees were earned and included in other income in the Consolidated Statements of Operations.

*Early repayment and termination fees:* Upon the prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are recorded as interest income. To the extent the Company receives early repayment fees in connection with pre-maturity loan agreement termination, such income will be recorded on the date of prepayment. The Company and its Advisor generally do not structure transactions with a contractual exit fee to be collected upon loan repayment at maturity. For the years ended December 31, 2025, 2024 and 2023, $75,621, $134,332 and $0, respectively, of early repayment fees were earned and included in other income on the Consolidated Statements of Operations.

*Gains and Losses:* Investment transactions are recorded on a trade-date basis. Realized gains or losses on portfolio investments are calculated based upon the difference between the net proceeds from the disposition and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized. Realized gains and losses are recorded within net realized gain (loss) on investments on the Consolidated Statements of Operations. Changes in the fair value of investments from the prior period, as approved by the Board based on fair value recommendations from the Advisor in accordance with the Advisor's valuation policy, are included within net change in unrealized gain (loss) on investments on the Consolidated Statements of Operations. For the years ended December 31, 2025, 2024 and 2023, the Company had $2,845,684, $3,899,990 and $45,283, respectively, of net realized gain (loss) on investments as represented on the Consolidated Statements of Operations.

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#### Distributions
Distributions to Stockholders are recorded on the applicable record date. The Company generally intends to make quarterly distributions to its Stockholders out of assets legally available for distribution. All current income and realization proceeds will be retained by the Company and be available for re-investment. Distributions will be made to Stockholders at such times and in such amounts as determined by the Company's Board.

The Company has adopted an "opt out" dividend reinvestment plan ("DRP") for Stockholders. When a distribution is declared, Stockholders' cash distributions will automatically be reinvested (net of applicable withholding tax) in additional shares of the Company's common stock ("Common Stock") unless a Stockholder specifically "opts out" of the Company's DRP. Stockholders may opt out of the Company's DRP by providing notice twenty (20) business days in advance of the distribution payment date.

If a Stockholder opts out, that Stockholder will receive cash distributions. Although distributions paid in the form of additional shares of Common Stock will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, Stockholders participating in the Company's DRP will not receive any corresponding cash distributions with which to pay any such applicable taxes. If distributions paid exceed tax earnings and profits, portions of the distribution can be recorded as a return of capital.

#### Earnings per Share
In accordance with the provisions of ASC Topic 260 – Earnings per Share, basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. The weighted average shares outstanding utilized in the calculation of earnings per share take into account share issues on the issuance date and the Company's repurchases of its Common Stock on the repurchase date. See Note 9 for additional information on the Company's share activity. For the years ended December 31, 2025, 2024 and 2023, there were no potentially dilutive common shares issued.

#### Segments
In accordance with ASC Topic 280 — Segment Reporting, the Company has determined that it has a single reporting segment and operating unit structure.

#### Cash
Cash is comprised of cash on deposit with major financial institutions. The Company places the majority of its cash with State Street Bank and Trust Company, a high credit quality institution, to minimize credit risk exposure. The Company, at times, may have cash on deposit with major financial institutions that exceeds federally insured limits.

#### Cash Equivalents
Cash equivalents are highly liquid investments with a current maturity of three months or less at the date of acquisition, which may include temporary investments in U.S. Treasury Bills (of varying maturities) or money market funds. There were no cash equivalents outstanding on the Company's Consolidated Statements of Assets and Liabilities as of December 31, 2025 and December 31, 2024.

#### Unamortized Deferred Financing Costs
Deferred financing costs represent fees and other direct incremental costs incurred in connection with the Company's borrowings. Deferred financing costs are capitalized as incurred and amortized on a straight-line basis to maturity of the Secured Credit Facility (as defined herein). For the years ended December 31, 2025, 2024 and 2023, the Company had $620,769, $593,706 and $627,611, respectively, of expensed financing costs included in interest and other financing fees on the Consolidated Statements of Operations. As of December 31, 2025 and December 31, 2024, the Company had $1,537,817 and $2,169,211, respectively, of unamortized deferred financing costs as shown in deferred financing cost on the Consolidated Statements of Assets and Liabilities.

#### Offering Costs
Offering costs are expensed as incurred. These expenses consist primarily of legal fees and other costs incurred with Company's share offerings, the preparation of the Company's registration statement, and registration fees. For the years ended December 31, 2025, 2024 and 2023, the Company incurred offering costs in the amount of $203,050, $200,000 and $209,416, respectively, as shown as a component of the general and administrative fees in the Consolidated Statements of Operations, of which $40,000 and $37,000 remained payable as of December 31, 2025 and December 31, 2024, respectively, and is included in other payables on the Consolidated Statements of Assets and Liabilities.

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#### Custodian Fees
The Company has entered into a custody agreement with State Street Bank and Trust Company (the "Custodian"). For the years ended December 31, 2025, 2024 and 2023, the Company incurred expenses for services provided by the Custodian of $45,008, $32,997 and $30,000, respectively, which is included in professional fees on the Consolidated Statements of Operations. As of December 31, 2025 and December 31, 2024, $11,449 and $14,500, respectively, remained payable, which is included in professional fees payable on the Consolidated Statements of Assets and Liabilities.

#### Income Taxes
On May 14, 2021, the Company elected to be regulated as a BDC under the 1940 Act. The Company also elected to be treated as a RIC under Subchapter M of the Code and intends to qualify annually as a RIC. As long as the Company maintains its status as a RIC, it generally will not pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that it distributes at least annually to its Stockholders. Rather, any tax liability related to income earned by the Company represents obligations of the Company's Stockholders and will not be reflected in the consolidated financial statements of the Company.

To qualify as a RIC under Subchapter M of the Code, the Company must, among other things, meet certain source-of-income and asset diversification requirements. In addition, to qualify for RIC tax treatment, the Company must distribute to its Stockholders, for each taxable year, at least 90% of its "investment company taxable income" for that year, which is generally its ordinary income plus the excess of its realized net short-term capital gains over its realized net long-term capital losses. In order for the Company not to be subject to U.S. federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its net ordinary income (taking into account certain deferrals and elections) for the calendar year, (ii) 98.2% of its capital gains in excess of capital losses for the one-year period ending October 31 in that calendar year and (iii) any net ordinary income and capital gains in excess of capital losses for preceding years that were not distributed during such years and on which the Company paid no U.S. federal income tax. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay a 4% nondeductible U.S. federal excise tax on this income. For the years ended December 31, 2025 and 2024, the Company recorded $79,746 and $37,907, respectively, of net expense on the Consolidated Statements of Operations for U.S. federal excise tax. For the year ended December 31, 2023, the Company did not record a net expense on the Consolidated Statements of Operations for U.S. federal excise tax.

The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes ("ASC Topic 740"). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current period. It is the Company's policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. For the years ended December 31, 2025 and 2024, the Company recorded $4,034,663 and $6,094,196, respectively, of deferred tax liability for the unrealized appreciation of investments held in the Holding Company, as shown on the Consolidated Statements of Assets and Liabilities. The Company did not record any uncertain income tax positions for the year ended December 31, 2023 on the Consolidated Statements of Assets and Liabilities.

#### Recent Accounting Pronouncements
In November 2023, the FASB issued Accounting Standard Update ("ASU") No. 2023-07, Segment Reporting (Topic 280), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The Company adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures ("ASU 2023-07"). Adoption of the new standard impacted financial statement disclosures only and did not affect the Company's financial position or the results of its operations. The ASU 2023-07 is effective for public entities for fiscal years beginning after December 15, 2023, and requires retrospective application for all prior periods presented within the financial statements.

Since its commencement, the Company operates and is managed as a single reportable segment deriving returns mainly in the form of interest income, dividend income and other fees from the investments made in pursuit of its single stated investment objective. The accounting policies of the Company are consistent with those described in these Notes to Financial Statements. The chief operating decision maker ("CODM") is represented by the Company's Chief Executive Officer and Chief Financial Officer. The CODM considers net investment income, leverage and increase or decrease in net assets resulting from operations in deciding how to deploy capital and make distributions to shareholders. Detailed financial information for the Company is disclosed within these financial statements with total assets and liabilities disclosed on the Consolidated Statements of Assets and Liabilities, investments held on the Consolidated Statements of Investments, results of operations and significant segment expenses on the Consolidated Statements of Operations and other information about the Company's performance, including total return, portfolio turnover and ratios within the Financial Highlights in Note 12.

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#### Note 3. Investments
The following tables show the composition of the Company's investment portfolio, at amortized cost and fair value (with corresponding percentage of total portfolio investments):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| First Lien Senior Secured Loan | $324763756 | 83.8% | $300852563 | 80.2% |
| Senior Unsecured Notes | 5728949 | 1.5 | 3763831 | 1 |
| Preferred Equity Securities | 51468339 | 13.3 | 62479421 | 16.7 |
| Warrants and Other Equity Securities | 2515593 | 0.7 | 6022684 | 1.6 |
| Fund Investments | 2529567 | 0.7 | 1925246 | 0.5 |
| &nbsp;&nbsp;&nbsp; Total | $387006204 | 100.0% | $375043745 | 100.0% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| First Lien Senior Secured Loan | $316588427 | 83.7% | $304120042 | 80.5% |
| Second Lien Senior Secured Loan | 6148061 | 1.6 | 6034048 | 1.6 |
| Senior Secured Notes  | 341103 | 0.1 | 341103 | 0.1 |
| Senior Unsecured Notes | 5460171 | 1.4 | 3427073 | 0.9 |
| Preferred Equity Securities | 43141500 | 11.4 | 53603056 | 14.2 |
| Warrants and Other Equity Securities | 3598027 | 1.0 | 7426377 | 2.0 |
| Fund Investments | 2898305 | 0.8 | 2688619 | 0.7 |
| &nbsp;&nbsp;&nbsp; Total | $378175594 | 100.0% | $377640318 | 100.0% |

---

The following tables show the composition of the Company's investment portfolio by geographic region, at amortized cost and fair value (with corresponding percentage of total portfolio investments). The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company's business:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Southeast | $105532002 | 27.2% | $103998979 | 27.7% |
| Midwest | 60910065 | 15.7 | 64907855 | 17.3 |
| West | 103275095 | 26.8 | 94822761 | 25.3 |
| Northeast | 58378552 | 15.1 | 50530770 | 13.5 |
| East | 31403307 | 8.1 | 29612464 | 7.9 |
| Southwest | 7836636 | 2.0 | 6830412 | 1.8 |
| South | 19670547 | 5.1 | 24340504 | 6.5 |
| &nbsp;&nbsp;&nbsp; Total | $387006204 | 100.0% | $375043745 | 100.0% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Southeast | $117080225 | 30.9% | $117034924 | 31.1% |
| West | 82054389 | 21.7 | 79102675 | 20.9 |
| Southwest | 24839939 | 6.6 | 26915726 | 7.1 |
| Northeast | 46304903 | 12.2 | 40825353 | 10.8 |
| Midwest | 51256396 | 13.6 | 55040086 | 14.6 |
| South | 21269446 | 5.6 | 25378672 | 6.7 |
| East | 35370296 | 9.4 | 33342882 | 8.8 |
| &nbsp;&nbsp;&nbsp; Total | $378175594 | 100.0% | $377640318 | 100.0% |

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The following tables show the composition of the Company's investment portfolio by industry, at amortized cost and fair value (with corresponding percentage of total portfolio investments):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Aerospace & Defense | $9326539 | 2.3% | $8756759 | 2.4% |
| Building Products | 2056099 | 0.5 | 2056098 | 0.6 |
| Chemicals | 19494186 | 5 | 19898602 | 5.4 |
| Commercial Services & Supplies | 13882178 | 3.6 | 14183797 | 3.8 |
| Construction & Engineering | 56399317 | 14.6 | 66511406 | 17.7 |
| Consumer Finance | 3695851 | 1.0 | 3763831 | 1.0 |
| Distributors | 14822272 | 3.8 | 7300311 | 1.9 |
| Diversified Financials | 2529567 | 0.7 | 1925246 | 0.5 |
|  Diversified Telecommunication Services | 23230783 | 6.0 | 21129751 | 5.6 |
|  Electrical Equipment | 11193385 | 2.9 | 877249 | 0.2 |
|  Entertainment | 33166183 | 8.6 | 31388774 | 8.4 |
|  Food Products | 9636856 | 2.5 | 11852852 | 3.2 |
|  Healthcare Providers & Services | 40622092 | 10.5 | 39110377 | 10.4 |
|  Hotels, Restaurants & Leisure | 8134000 | 2.1 | 8266981 | 2.2 |
|  Household Durables | 4534395 | 1.2 | 3867034 | 1.0 |
|  Household Products | 13061081 | 3.4 | 13833981 | 3.7 |
|  Leisure Products | 5670240 | 1.5 | 3407718 | 0.9 |
|  Machinery | 4382109 | 1.1 | 3645509 | 1.0 |
|  Media | 19945133 | 5.2 | 21105771 | 5.6 |
|  Personal Products | 4497209 | 1.2 | 4532223 | 1.2 |
|  Professional Services | 50577849 | 13.1 | 55315203 | 14.7 |
|  Software | 997283 | 0.3 | 640379 | 0.2 |
| Specialty Retail | 6993393 | 1.8 | 7052922 | 1.9 |
|  Trading Companies & Distributors | 18154523 | 4.7 | 14804024 | 3.9 |
| Transportation Infrastructure | 10003681 | 2.6 | 9816947 | 2.6 |
| &nbsp;&nbsp;&nbsp; Total | $387006204 | 100.0% | $375043745 | 100.0% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Aerospace & Defense | $8918780 | 2.4% | $8103579 | 2.1% |
| Chemicals | 14623342 | 3.9 | 14812499 | 3.9 |
| Commercial Services & Supplies | 4118722 | 1.1 | 3908639 | 1.0 |
| Construction & Engineering | 75685424 | 19.9 | 83705436 | 22.3 |
| Consumer Finance | 3427073 | 0.9 | 3427073 | 0.9 |
| Distributors | 14323723 | 3.8 | 13163459 | 3.5 |
| Diversified Financials | 2898305 | 0.8 | 2688619 | 0.7 |
| Diversified Telecommunication Services | 22915391 | 6.1 | 23137607 | 6.1 |
| Electrical Equipment | 11231435 | 3.0 | 5729737 | 1.5 |
| Entertainment | 18324745 | 4.8 | 14317635 | 3.8 |
| Food Products | 9662293 | 2.6 | 11608503 | 3.1 |
| Healthcare Providers & Services | 43990733 | 11.6 | 41162604 | 10.9 |
| Hotels, Restaurants & Leisure | 4891016 | 1.3 | 4910952 | 1.3 |
| Household Durables | 4534757 | 1.2 | 3057209 | 0.8 |
| Household Products | 4875685 | 1.3 | 4990960 | 1.3 |
| IT Services | 12433640 | 3.3 | 12558929 | 3.3 |
| Leisure Products | 5449787 | 1.4 | 3230877 | 0.9 |
| Machinery | 4547261 | 1.2 | 4217950 | 1.1 |
| Media | 22096440 | 5.8 | 26926042 | 7.1 |
| Personal Products | 4360968 | 1.2 | 4404301 | 1.2 |
| Professional Services | 51365785 | 13.5 | 58307390 | 15.4 |
| Software | 997284 | 0.3 | 965151 | 0.3 |
| Specialty Retail | 6609366 | 1.7 | 6703118 | 1.8 |
| Trading Companies & Distributors | 15699920 | 4.2 | 11262596 | 3 |
| Transportation Infrastructure | 10193719 | 2.7 | 10339453 | 2.7 |
| &nbsp;&nbsp;&nbsp; Total | $378175594 | 100.0% | $377640318 | 100.0% |

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#### Note 4. Fair Value Measurements Investments
ASC Topic 820 clarifies the definition of fair value as the amount that would be received in the sale of an asset or paid in the transfer of a liability in an orderly transaction between market participants at the measurement date. Where available, the Company uses quoted market prices based on the last sales price on the measurement date.

In accordance with ASC Topic 820, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). To the extent that fair value is based on inputs that are less observable, the determination of fair value requires a significant amount of management judgment. Investments which are valued using NAV as a practical expedient are excluded from this hierarchy.

The three-tier hierarchy of inputs is summarized below.

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

&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 - Pricing inputs are observable inputs including, but not limited to, prices quoted for similar assets or liabilities in active markets/exchanges or prices quoted for identical or similar assets or liabilities in markets
 that are not active, and fair value is determined through the use of models or other valuation methodologies.

&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 - Pricing inputs are unobservable for the investment and include activities where there is little, if any, market activity for the investment. The inputs into determination of fair value require significant management
 judgment and estimation.

The inputs used by management in estimating the fair value of Level 3 investments may include valuations and other reporting provided by representatives of the portfolio companies, original transaction prices, recent transactions for identical or similar instruments, and comparisons to fair values of comparable investments, and may include adjustments to reflect illiquidity or non-transferability. The Company has policies with respect to its investments, which may assist the Advisor in assessing the quality of information provided by, or on behalf of, each portfolio investment and in determining whether such information continues to be provided by a reliable source or whether further investigation is necessary. Any such investigation, as applicable, may or may not require the Advisor to forego its normal reliance on the value supplied by, or on behalf of, such portfolio investment and to independently recommend the fair value of the Company's interest in such portfolio investments for approval by the Board, consistent with the Company's valuation procedures.

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The Company has engaged two independent third-party valuation providers, which perform valuation procedures to arrive at estimated valuation ranges of the investments on a quarterly basis. Investments that have been completed within the past three months will be fair valued at cost unless there has been a material event. If there has been a material event or material information that was not known as of the close of the transaction, the independent third-party valuation providers will provide an independent valuation range. The types of valuation methodologies employed by the third-party valuation providers include discounted cash flow, recent financing and enterprise value valuation methodologies. The Company's Board will discuss valuations and determine the fair value of each investment in the Company's portfolio in good faith, based on the input of the Advisor, the respective independent valuation firms and the audit committee.

The Company's investments and borrowings are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments and borrowings are traded.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics and other factors.

The use of these valuation models requires significant estimation and judgment by the Advisor. While the Company believes its valuation methods are appropriate, other market participants may value identical assets differently than the Company at the measurement date. The methods used by the Company may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. The Company may also have risk associated with its concentration of investments in certain geographic regions and industries.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for securities categorized in Level 3.

The determination of what constitutes "observable" requires significant judgment by the Company. The Company considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, which may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. The categorization of an investment within the hierarchy is based upon the pricing transparency of the investment and observability of prices and inputs may be reduced for many investments. This condition could cause the investment to be reclassified to a lower level within the fair value hierarchy.

The consolidated financial statements include portfolio investments at fair value of $375,043,745 and $377,640,318 as of December 31, 2025 and December 31, 2024, respectively.

The Company valued its investments in underlying funds based on its proportionate interest in net asset value ("NAV") of the underlying funds. For the purpose of classifying the investments in underlying funds within the fair value hierarchy, the Company makes use of the practical expedient under ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent). As of December 31, 2025 and December 31, 2024, the Company's investments in underlying funds amounted to $1,925,246 and $2,688,619, respectively.

U.S. GAAP requires that the Company disclose the Company's pro-rata portion of individual securities, if available, that are reported to the Company by the underlying portfolio funds that exceed 5% of the Company's capital balance.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| <br>**December 31, 2025** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| First Lien Senior Secured Loan | $- | $- | $300852563 | $300852563 |
| Senior Unsecured Notes<br>|  |  | 3763831 | 3763831 |
| Preferred Equity Securities | - | - | 62479421 | 62479421 |
| Warrants and Other Equity Securities | - | - | 6022684 | 6022684 |
| Total<br>| $- | $- | $373118499 | $373118499 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| <br>**December 31, 2024** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| First Lien Senior Secured Loan | $- | $- | $304120042 | $304120042 |
| Senior Secured Notes  |  |  | 341103 | 341103 |
| Second Lien Senior Secured Loan | - | - | 6034048 | 6034048 |
| Senior Unsecured Notes |  |  | 3427073 | 3427073 |
| Preferred Equity Securities | - | - | 53603056 | 53603056 |
| Warrants and Other Equity Securities | - | - | 7426377 | 7426377 |
| Total<br>| $- | $- | $374951699 | $374951699 |

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First Lien Senior Secured Loans and Second Lien Senior Secured Loans are collateralized by tangible and intangible assets of the borrowers. These investments include loans to entities that have some level of challenge in obtaining financing from other, more conventional institutions, such as a bank. Interest rates on these loans are either fixed or floating and are based on current market conditions.

The following table provides a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the year ended December 31, 2025:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** |
|  | **First Lien Senior**<br> **Secured Loan** | **Second Lien** <br> **Senior Secured**<br> **Loan** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Senior Secured**<br> **Notes** | **Senior Unsecured**<br> **Notes** | **Preferred Equity**<br> **Securities** | **Warrants and**<br> **Other Equity** <br> **Securities**  | **Fund Investments** | **Total** <br> **Investments** |
|  Balance as of December 31, 2024 | $304120042 | $6034048 | $341103 | $3427073 | $53603056 | $7426377 | $2688619 | $377640318 |
|  Net realized gain/loss on investments | - | - |  |  | 1863881 | 2488217 | - | 4352098 |
|  Net change in unrealized gain (loss) on investments | (11442809) | 114013 |  | 67980 | 549527 | (321257) | (394635) | (11427181) |
|  Purchases of investments and other adjustments to cost <sup>(1)</sup> | 78110127 | 1388643 | 88677 | 268778 | 1623105 | - | - | 81479330 |
|  Proceeds from sales of investments | - | - |  |  | (4333421) | (3428168) | - | (7761589) |
|  Proceeds from principal repayments <sup>(2)</sup> | (68758118) | (101070) |  |  | - | - | (368738) | (69227926) |
|  Lien status change <sup>(3)</sup> | 6371567 | (7435634) | (429780) |  | 1493847 | - | - | - |
| Transfer/Restructuring of Investments  | (7548246) | - | - | - | 7679426 | (142485) | - | (11305) |
|  Balance as of December 31, 2025 | $300852563 | $- | $- | $3763831 | $62479421 | $6022684 | $1925246 | $375043745 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes purchases of new investments, premium and discount accretion and amortization and PIK interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes paydowns receivable included in the Consolidated
 Statements of Assets and Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Lien conversions are fair valued at beginning of period
 or at time of restructure.

The following table provides a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the year ended December 31, 2024:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** |
|  | **First Lien Senior**<br> **Secured Loan** | **Second Lien** <br> **Senior Secured**<br> **Loan** | **Senior Secured**<br> **Notes** | **Senior** <br> **Unsecured**<br> **Notes** | **Preferred Equity**<br> **Securities** | **Warrants and**<br> **Other Equity**<br> **Securities** | **Fund Investments** | **Total**<br> **Investments** |
|  Balance as of December 31, 2023 | $319229009 | $6059372 | $- | $1384446 | $41804395 | $5706423 | $2809327 | $376992972 |
|  Net realized gain (loss) on investments | - | - |  |  | 3244977 | 655013 |  | 3899990 |
|  Net change in unrealized gain (loss) on investments | 594794 | 131864 |  | (1384446) | 341713 | 989683 | (120708) | 552900 |
|  Purchases of investments and other adjustments to cost <sup>(1)</sup> | 51996143 | 52643 | 341103 | 8874 | 4232554 | - |  | 56631317 |
|  Proceeds from sales of investments | (116674) | - |  |  | (4523942) | (655013) |  | (5295629) |
|  Proceeds from principal repayments <sup>(2)</sup> | (54914362) | (209831) |  |  | (17039) | - |  | (55141232) |
|  Lien status change <sup>(3)</sup><br>| (12668868) |  |  | 3418199 | 8520398 | 730271 |  |  |
|  Balance as of December 31, 2024 | $304120042 | $6034048 | $341103 | $3427073 | $53603056 | $7426377 | $2688619 | $377640318 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes purchases of new investments, premium and discount accretion and amortization and PIK interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes paydowns receivable included in the Consolidated Statements of Assets and Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Lien conversions are fair valued at beginning of period or at time of restructure.

The net change in unrealized gain (loss) on investments included on the Consolidated Statements of Operations for the years ended December 31, 2025 and December 31, 2024, attributable to Level 3 investments still held as of December 31, 2025 and December 31, 2024 was $(5,351,877) and $2,402,661, respectively.

Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of Level 3 as of the beginning of the period which the reclassifications occur. There were no transfers among Levels 1, 2 and 3 for the years ended December 31, 2025 and December 31, 2024.

Purchases (including accretion, amortization, PIK interest) for the year ended December 31, 2025 amounted to $81,479,330 of fair value. Purchases (including accretion, amortization, PIK interest) for the year ended December 31, 2024 amounted to $56,631,317 of fair value.

For the year ended December 31, 2025, the Company invested (net of original issue discount) $14,368,059 in two new portfolio companies and $62,054,915 in twenty-one existing portfolio companies as reflected in the Consolidated Schedule of Investments. For the year ended December 31, 2024, the Company invested (net of original issue discount) $41,468,116 in four new portfolio companies and $7,250,270 in six existing portfolio companies as reflected in the Consolidated Schedule of Investments.

During the year ended December 31, 2025, Consolidated Machine & Tool Holdings, LLC underwent a restructuring that resulted in the formation of Delva Master Holdings, now an affiliated entity of the Company. The restructuring comprised of a majority conversion into debt and equity securities.

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#### Significant Unobservable Inputs
ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

The table below summarizes the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy as of December 31, 2025.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | |  |  | |  | **Range** | **Range** | **Range** |  |
|  | **Fair Value** | **Valuation Technique** | **Unobservable Input** | **Weighted**<br> **Average Mean** |  | **Minimum** |  | **Maximum** |  |
|  **Assets:** | |  |  | |  | |  | |  |
| &nbsp;&nbsp;&nbsp; First Lien Senior Secured Loans | $278977857 | Discounted Cash Flow | Discount Rate  | 13.7 | % | 5.9 | % | 23.9 | % |
| &nbsp;&nbsp;&nbsp; First Lien Senior Secured Loans | 23143096 | Guideline Public Company Method | Revenue Multiple | 0.5 | x  | 0.2 | x  | 0.9 | x  |
|  |  | Guideline Public Company Method  | EBITDA Multiple | 11 | x  | 10.5 | x  | 11.5 | x  |
| &nbsp;&nbsp;&nbsp; First Lien Senior Secured Loans | 2267252 | Transaction Price | N/A | N/A |  | N/A |  | N/A |  |
| Senior Unsecured Notes | 228189 | Discounted Cash Flow | Discount Rate | 13.3 | % | 12.1 | % | 14.6 | % |
| &nbsp;&nbsp;&nbsp; Preferred Equity Securities | 23887117 | Discounted Cash Flow | Discount Rate | 22.8 | % | 13 | % | 31.5 | % |
| &nbsp;&nbsp;&nbsp; Preferred Equity Securities | 28548928 | Guideline Public Company Method | Revenue Multiple  | 1.4 | x  | 0.5 | x  | 4.5 | x  |
|  |  | Guideline Public Company Method  | EBITDA Multiple | 8.9 | x  | 4.8 | x  | 25.1 | x  |
| &nbsp;&nbsp;&nbsp; Preferred Equity Securities | 9828998 | Guideline Merged & Acquired Company Method | Revenue Multiple | 1.7 | x  | 0.5 | x  | 2.5 | x  |
|  |  | Guideline Merged & Acquired Company Method | EBITDA Multiple | 9.9 | x  | 7.5 | x  | 14.4 | x  |
| &nbsp;&nbsp;&nbsp; Preferred Equity Securities | 214378 | Transaction Price | N/A | N/A |  | N/A |  | N/A |  |
| &nbsp;&nbsp;&nbsp; Warrants and Other Equity Securities | 203603 | Discounted Cash Flow | Discount Rate | 24.0 | % | 15.5 | % | 31.5 | % |
| &nbsp;&nbsp;&nbsp; Warrants and Other Equity Securities | 5819080 | Guideline Public Company Method | Revenue Multiple | 1.0 | x  | 0.2 | x  | 2.5 | x  |
|  |  | Guideline Public Company Method | EBITDA Multiple | 9.3 | x  | 4.8 | x  | 13.5 | x  |
|  Total Level 3 Assets | $373118499 |  |  |  |  |  |  |  |  |

---

The table below summarizes the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy as of December 31, 2024.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | |  |  | |  | **Range** | **Range** | **Range** |  |
|  | **Fair Value** | **Valuation Technique** | **Unobservable Input** | **Weighted Average Mean** |  | **Minimum** |  | **Maximum** |  |
| Assets: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; First Lien Senior Secured Loan | $265968375 | Discounted Cash Flow | Discount Rate | 15.1 | % | 7.7 | % | 27.5 | % |
| &nbsp;&nbsp;&nbsp; First Lien Senior Secured Loan | 14268323 | Guideline Public Company Method | Revenue Multiple | 0.91 | x  | 0.65 | x  | 1.17 | x |
|  |  |  | EBITDA Multiple | 8.74 | x  | 0.53 | x  | 11.24 | x  |
| &nbsp;&nbsp;&nbsp; First Lien Senior Secured Loan | 23883344 | Transaction Price | N/A | N/A |  | N/A |  | N/A |  |
| &nbsp;&nbsp;&nbsp; Second Lien Senior Secured Loan | 6034048 | Discounted Cash Flow | Discount Rate | 16.7 | % | 15.4 | % | 18.0 | % |
| &nbsp;&nbsp;&nbsp; Senior Secured Note | 341103 | Transaction Price | N/A | N/A |  | N/A |  | N/A |  |
| &nbsp;&nbsp;&nbsp; Senior Unsecured Note | 3427073 | Discounted Cash Flow | Discount Rate | 13.8 | % | 12.5 | % | 15.0 | % |
| &nbsp;&nbsp;&nbsp; Preferred Equity Securities | 16391316 | Discounted Cash Flow | Discount Rate | 23.9 | % | 15.0 | % | 44.5 | % |
| &nbsp;&nbsp;&nbsp; Preferred Equity Securities | 26931469 | Guideline Public Company Method | Revenue Multiple | 1.42 | x  | 0.40 | x  | 4.60 | x  |
|  |  |  | EBITDA Multiple | 10.12 | x  | 6.25 | x  | 16.00 | x  |
|  |  |  | Gross Profit Multiple | 2.76 | x  | 2.38 | x  | 3.14 | x  |
| &nbsp;&nbsp;&nbsp; Preferred Equity Securities | 8741809 | Guideline Merged & Acquired Company Method | Revenue Multiple | 1.69 | x  | 0.50 | x  | 2.50 | x  |
|  |  |  | EBITDA Multiple | 9.46 | x  | 7.50 | x  | 12.50 | x  |
| &nbsp;&nbsp;&nbsp; Preferred Equity Securities | 1538462 | Transaction Price | N/A | N/A |  | N/A |  | N/A |  |
| &nbsp;&nbsp;&nbsp; Warrants and Other Equity Securities | 214733 | Discounted Cash Flow | Discount Rate | 22.9 | % | 20.0 | % | 32.5 | % |
| &nbsp;&nbsp;&nbsp; Warrants and Other Equity Securities | 7211644 | Guideline Public Company Method | Revenue Multiple | 1.05 | x  | 0.65 | x | 3.01 | x  |
| Total Level 3 Assets | $374951699 |  |  |  |  |  |  |  |  |

---

An increase or decrease in any of the significant unobservable inputs used in the fair value measurement of the investments would result in a higher or lower fair value measurement, respectively.

The significant unobservable input used in the income approach of fair value measurement of the Company's investments is the discount rate (derived from market yields, EBITDA Multiple and Revenue Multiple)used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. Increases (decreases) in the discount rate would result in a decrease (increase) in the fair value estimate of the investment. Included in the consideration and selection of discount rates are the following factors: risk of default, rating of the investment and comparable investments, and call provisions.

The significant unobservable inputs used in the market approach of fair value measurement of the Company's investments are the market multiples of EBITDA or revenue of the comparable guideline public companies. The Company selects a population of public companies for each investment with similar operations and attributes of the portfolio company. Using these guideline public companies' data, a range of multiples of enterprise value to EBITDA or revenue is calculated. The Company selects percentages from the range of multiples for purposes of determining the portfolio company's estimated enterprise value based on said multiple and generally the latest twelve months EBITDA or revenue of the portfolio company (or other meaningful measure). Increases (decreases) in the multiple will result in an increase (decrease) in enterprise value, resulting in an increase (decrease) in the fair value estimate of the investment.

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#### Note 5. Transactions with Affiliated Companies
The Company and the Advisor have received an exemptive order from the SEC that permits the Company to co-invest with certain accounts managed by the Advisor and/or certain affiliates of the Company, subject to the terms and conditions specified in the exemptive order.

An affiliated company is a company in which the Company has an ownership interest of 5% or more of its voting securities. A controlled affiliate company is a company in which the Company and its affiliated funds have an ownership interest of more than 25% of its voting securities. Please see the Company's Consolidated Schedule of Investments for the type of investment, principal amount, interest rate including the spread, and the maturity date for investments in affiliated companies. For the years ended December 31, 2025 and December 31, 2024, Star Mountain Fund Management, LLC's managed funds had an ownership interest of 25% or more or the Company had an ownership of 5% or more in five and five companies' voting securities, respectively.

Transactions related to the Company's investments with affiliated and controlled affiliates for the years ended December 31, 2025 and December 31, 2024, were as follows:

---

| | | |
|:---|:---|:---|
| **The year ended December 31, 2025** | **Equity Ownership Held by the**<br> **Company** | **Equity Ownership Held by**<br> **Star Mountain Affiliate Funds** |
| **Issuer:** | | |
| &nbsp;&nbsp;&nbsp; Arrow Home Health LLC | 2.6% | 72.2% |
| &nbsp;&nbsp;&nbsp; Caregility Corporation | 7.9% | 37.4% |
| &nbsp;&nbsp;&nbsp; Delva Master Holdings | 2.7% | 74.5% |
| &nbsp;&nbsp;&nbsp; Lasalle Staffing, LLC<br>| 5.8% | 21.9% |
| &nbsp;&nbsp;&nbsp; Microf, LLC<br>| 0.0% | 77.3% |
| &nbsp;&nbsp;&nbsp; MPUSA, LLC (dba Mission)<br>| 4.3% | 34.4% |
| &nbsp;&nbsp;&nbsp; Uncle John's Pride, LLC<br>| 5.6% | 18.8% |
| &nbsp;&nbsp;&nbsp; USBid Inc.<br>| 13.5% | 57.7% |
| &nbsp;&nbsp;&nbsp; Watt Acquisition, LLC<br>| 30.2% | 89.6% |

---

---

| | | |
|:---|:---|:---|
| **The year ended December 31, 2024** | **Equity Ownership Held by the**<br> **Company** | **Equity Ownership Held by**<br> **Star Mountain Affiliate Funds** |
| **Issuer:** | | |
| &nbsp;&nbsp;&nbsp; Arrow Home Health LLC | 2.5% | 72.2% |
| &nbsp;&nbsp;&nbsp; Caregility Corporation | 7.9% | 37.4% |
| &nbsp;&nbsp;&nbsp; Lasalle Staffing, LLC<br>| 5.8% | 21.9% |
| &nbsp;&nbsp;&nbsp; Microf, LLC<br>| 0.0% | 83.7% |
| &nbsp;&nbsp;&nbsp; MPUSA, LLC (dba Mission)<br>| 4.3% | 34.4% |
| &nbsp;&nbsp;&nbsp; Uncle John's Pride, LLC<br>| 5.6% | 18.8% |
| &nbsp;&nbsp;&nbsp; USBid Inc.<br>| 13.5% | 57.7% |
| &nbsp;&nbsp;&nbsp; Watt Acquisition, LLC<br>| 5.6% | 17.4% |

---

#### Note 6. Transactions with Related Parties
Star Mountain Lower Middle-Market (Offshore) Ltd. (the "Feeder Fund") was formed as a Cayman Islands exempted company and commenced operations on August 17, 2021. The Feeder Fund has been formed to invest all or substantially all of its investable assets in the common stock of the Company. As of December 31, 2025 and December 31, 2024, the Feeder Fund had $46,888,800 and $46,488,800 in capital committed to the Company, respectively, and an ownership percentage in the Company of 16.08% and 17.02%, respectively. As of December 31, 2025 and December 31, 2024, the Feeder Fund had no contributions payable to the Company, respectively.

#### Management Fees
The Company has entered into an investment advisory agreement with the Advisor (as amended and restated, the "Investment Advisory Agreement"), under which the Advisor, subject to the overall supervision of the Board, provides investment advisory services to the Company. The Company pays the Advisor a fee for its services under the Investment Advisory Agreement consisting of two components – a base management fee and an incentive fee. The cost of both the base management fee and the incentive fee are borne by the Company's Stockholders, unless such fees are waived by the Advisor.

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On June 14, 2023, the Company entered into an amended and restated investment advisory agreement with the Advisor (the "Amended and Restated Investment Advisory Agreement"), replacing the Investment Advisory Agreement pursuant to which effective June 14, 2023 (the "Effective Date"), the base management fee was reduced from 1.75% to 1.25% per annum of the average of the Company's total gross assets (excluding cash or cash equivalents but including assets purchased with borrowed amounts) as of the end of each of the two most recently completed calendar quarters. The Advisor waived a portion of its Management Fee in excess of the base management fee calculated at the reduced rate of 1.25% for the period June 14, 2023 through September 30, 2023. Such fee waivers took effect on the Effective Date.

Management fees for the years ended December 31, 2025, 2024 and 2023 were $4,707,419, $4,464,449 and $5,183,339, respectively. For the years ended December 31, 2025, 2024 and 2023, Star Mountain Fund Management, LLC elected to voluntarily waive $0, $0 and $633,649, respectively, of such management fees. The management fees waived are not recoupable by Star Mountain Fund Management, LLC. There is no guarantee that Star Mountain Fund Management, LLC will waive management fees in the future, and Star Mountain Fund Management, LLC may discontinue or modify any such waivers in the future at its discretion. As of December 31, 2025 and December 31, 2024, $1,184,837 and $1,157,509 of management fees remained payable, respectively.

#### Incentive Fees
The incentive fee ("Incentive Compensation") consists of two parts. The first component of the income incentive fee is payable quarterly in arrears. The Income Incentive Fee will be determined by comparing the Company's pre-incentive fee net investment income for the preceding quarter. Pre-incentive fee net investment income means interest income, dividend income, PIK interest and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee), any expenses payable under the administration agreement (the "Administration Agreement") between the Company and the Administrator and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee. Pre-incentive fee net investment income will include, in the case of investments with a deferred interest feature such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero-coupon securities, accrued income that the Company has not yet received in cash. The Advisor is not under any obligation to reimburse the Company for any part of the incentive fee it receives that was based on accrued interest that the Company never actually receives.

Pre-incentive fee net investment income does not include any realized capital gains or losses or unrealized capital gains or losses. If any distributions from portfolio companies are characterized as a return of capital, such returns of capital would affect the capital gains incentive fee to the extent a gain or loss is realized. Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter where it incurs a loss. For example, if the Company receives pre-incentive fee net investment income in excess of the hurdle rate (as defined below) for a quarter, the Company will pay the applicable incentive fee even if it has incurred a loss in that quarter due to realized and unrealized capital losses.

Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company's net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed "hurdle rate" of 1.75% per quarter (7% annually).

As of the Effective Date, the Income Incentive Fee rate was reduced from 20% to 17.5% of the Company's pre-incentive fee net investment income.

Under the Amended and Restated Investment Advisory Agreement, the Company pays the Advisor an incentive fee with respect to its pre-incentive fee net investment income in each calendar quarter as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no incentive fee in any calendar quarter in which the pre-incentive fee net investment income does not exceed the hurdle rate of 1.75%
 (7% annually);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of the Company's pre-incentive fee net investment income with respect to that portion of such pre-incentive fee
 net investment income, if any, that exceeds the hurdle rate but is less than or equal to the product of (i) 2.1212% per
 quarter (8.4848% annualized) and (ii) the Company's net assets at the end of the immediately preceding quarter. The
 Company refers to this portion of the Company's pre-incentive fee net investment income as the "catch-up" provision. The catch-up is meant to provide the Advisor with approximately 17.5% of the pre-incentive fee net investment income if a hurdle rate did not apply; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 17.5% of the Company's pre-incentive fee net investment income that exceeds the "catch-up" provision. This provides
 that once the hurdle amount and the catch-up provision are achieved, 17.5% of all pre-incentive fee net investment
 income thereafter is allocated to the Advisor.

The second part of the incentive fee is a capital gains incentive fee that is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement, as of the termination date). Under the Investment Advisory Agreement, the Capital Gains Incentive Fee was reduced from 20.0% to 17.5% of cumulative realized capital gains as of the end of the fiscal year.

In determining the capital gains incentive fee payable to the Advisor, the Company calculates the cumulative aggregate realized capital gains and cumulative aggregate realized capital losses since the Company's inception, and the aggregate unrealized capital depreciation as of the date of the calculation, as applicable, with respect to each of the investments in the Company's portfolio. For this purpose, cumulative aggregate realized capital gains, if any, equals the sum of the differences between the net sales price of each investment, when sold, and the amortized cost of such investment. Cumulative aggregate realized capital losses equals the sum of the amounts by which the net sales price of each investment, when sold, is less than the amortized cost of such investment since the Company's inception. Aggregate unrealized capital depreciation equals the sum of the difference, if negative, between the valuation of each investment as of the applicable calculation date and the amortized cost of such investment. At the end of the applicable year, the amount of capital gains that will serve as the basis for the calculation of the capital gains incentive fee equals the cumulative aggregate realized capital gains less cumulative aggregate realized capital losses, less aggregate unrealized capital depreciation, with respect to the Company's portfolio of investments. If this number is positive at the end of such year, then the capital gains incentive fee for such year equals 17.5% (reduced from 20.0%) of such amount, less the aggregate amount of any capital gains incentive fees paid in respect of the Company's portfolio in all prior years.

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While the Investment Advisory Agreement with the Advisor neither includes nor contemplates the inclusion of unrealized gains in the calculation of the capital gains incentive fee, pursuant to an interpretation of an American Institute for Certified Public Accountants Technical Practice Aid for investment companies, the Company includes unrealized gains in the calculation of the capital gains incentive fee expense and related accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to the Advisor if the Company's entire portfolio was liquidated at its fair value as of the balance sheet date even though the Advisor is not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized.

Income incentive fees for the years ended December 31, 2025, 2024 and 2023 were $3,410,081, $4,097,254 and $4,996,040, respectively. For the years ended December 31, 2025, 2024 and 2023 no capital gains incentive fees were accrued. For the years ended December 31, 2025, 2024 and 2023, Star Mountain Fund Management, LLC elected to voluntarily waive $0, $1,283,530 and $1,034,565 of such incentive fees, respectively. The incentive fees waived are not recoupable by Star Mountain Fund Management, LLC and there is no guarantee that Star Mountain Fund Management, LLC will waive incentive fees in the future, and Star Mountain Fund Management, LLC may discontinue or modify any such waivers in the future at its discretion. As of December 31, 2025 and December 31, 2024, $6,223,804 and $2,813,724 of such incentive fees remained payable, respectively.

#### Administration Fees
The Company has entered into the Administration Agreement with the Administrator, under which the Company reimburses the Administrator for its allocable portion of overhead and other expenses, including the costs of furnishing the Company with office facilities and equipment and providing clerical, bookkeeping, record-keeping and other administrative services at such facilities, and the Company's allocable portion of the cost of the chief financial officer and chief compliance officer and their respective staffs. To the extent that the Administrator outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis, without incremental profit, to the Administrator. For the years ended December 31, 2025, 2024 and 2023 the Company incurred reimbursement expenses of $624,205, $243,547 and $237,082, respectively, included under General and Administrative fees on the Consolidated Statements of Operations. As of December 31, 2025 and December 31, 2024, $146,408 and $77,275 of reimbursement expense was payable as shown in the Consolidated Statements of Assets and Liabilities as reimbursement expense payable, respectively.

The Administrator has entered into a sub-administration agreement with SS&C Technologies, Inc. (the "Sub-Administrator"), under which the Sub-Administrator provides various accounting and administrative services to the Company. Administrative services may include maintenance of the Company's books and records, processing of investor transactions, and calculation of the NAV. For the years ended December 31, 2025, 2024 and 2023, the Company incurred expenses for services provided by the Sub-Administrator of $996,208, $743,140 and $636,927, respectively, which is included in professional fees on the Consolidated Statements of Operations. As of December 31, 2025 and December 31, 2024, there were no amounts payable for expenses incurred for services provided by the Sub-Administrator.

#### Directors' Fees
The Company incurs certain fees and expenses paid to the Company's independent directors (including expenses and costs related to meetings of the independent directors); for the years ended December 31, 2025, 2024 and 2023 directors' expenses are $140,000, $143,750 and $91,250, respectively, as shown on the Consolidated Statements of Operations. As of December 31, 2025 and December 31, 2024, $35,000 and $35,000 of directors' expenses remained payable, respectively, which is included in professional fees payable as shown on the Consolidated Statements of Assets and Liabilities.

#### Note 7. Borrowings
On July 2, 2021, the Company entered into a Loan and Servicing Agreement (the "Loan Agreement") with Sterling National Bank ("SNB"), which provides for a $55 million senior secured revolving credit facility ("Secured Credit Facility"). In February 2022, SNB was subsequently acquired by Webster Bank ("Webster"), which took over the relationship with the Company. On January 12, 2022, the Company entered into a second amendment to the Secured Credit Facility to upsize the Secured Credit Facility to $80 million. On May 6, 2022, the Company entered into an amendment to the Secured Credit Facility to upsize the Secured Credit Facility to $125 million. On September 16, 2022, the Company entered into an amendment to the Secured Credit Facility to upsize the Secured Credit Facility to $200 million. On May 9, 2024, the Company entered into an amendment to the Secured Credit Facility to reassign commitment amounts and negotiate Secured Credit Facility fees.

In May 2024, the Company extended its $200,000,000 Secured Credit Facility with Webster, the Administrative Agent, to June 30, 2028. The Secured Credit Facility carries an interest rate of 3M SOFR plus 2.9%. On June 27, 2025, the Company entered into an amendment to the Secured Credit Facility to reduce the Applicable Spread to 2.30%, plus following the occurrence and during the continuation of an Event of Default, 2.00%.

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As of December 31, 2025 and December 31, 2024, the Secured Credit Facility commitment amounts were as follows:

---

| | | |
|:---|:---|:---|
| **Secured Credit Facility Lender** | **As of December 31, 2025**<br> **Commitment** | **As of December 31, 2024**<br> **Commitment** |
| Webster Bank | $67500000 | $67500000 |
| Dime Community Bank | 25000000<br>| 25000000 |
| First Foundation Bank | 20000000 | 20000000 |
| Mitsubishi HC Capital America, Inc. | 20000000 | 20000000 |
| Woodforest National Bank | 20000000 | 20000000 |
| Peapack-Gladstone Bank | 17000000 | 17000000 |
| Hanmi Bank | 15500000 | 15500000 |
| Apple Bank | 15000000 | 15000000 |
| &nbsp;&nbsp;&nbsp; Total Commitment | $200000000 | $200000000 |

---

Borrowings can be increased to a maximum of $350 million in accordance with the Secured Credit Facility accordion feature terms and conditions and are limited by various advance rates and concentration limits.

As of December 31, 2025 and December 31, 2024, the total fair value of the borrowings outstanding under the Secured Credit Facility was $122,300,000 and $122,500,000, respectively. The fair value of the borrowings outstanding under the Secured Credit Facility and the Revolving Credit Line are based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

Inclusive of syndication, agency, and administrative fees paid to Webster, the total annualized cost of capital is estimated to be 6.9%. The Company will also pay a non-utilization fee on the average daily unused amount of the aggregate commitments until the commitment termination date (as defined in the Loan Agreement). As of December 31, 2025 and December 31, 2024, the total commitments under the Secured Credit Facility were $200 million. Proceeds from borrowings under the Secured Credit Facility may be used to finance certain investments, fulfill payment obligations under the Secured Credit Facility, make distributions/payments permitted by the Loan Agreement. All amounts outstanding under the Secured Credit Facility must be repaid by June 30, 2028. The Company's obligations to the lenders under the Secured Credit Facility are secured by a first priority security interest in substantially all of the Company's assets, subject to certain exclusions.

Borrowings under the Secured Credit Facility are limited by various advance rates and concentration limits. In connection with the Secured Credit Facility, the Company has made certain customary representations/warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. The Secured Credit Facility is subject to customary events of default for similar financing transactions. Upon the occurrence and during the continuation of an event of default, Webster may declare the outstanding advances and all other obligations under the Secured Credit Facility immediately due and payable.

On June 22, 2022, the Company entered into a Loan and Security Agreement with East West Bank, which provides for cash or credit advances of up to $25 million (the "Revolving Credit Line") pursuant to the terms and conditions of the Revolving Credit Line. On September 26, 2022, the Company entered into an amendment with East West Bank, to downsize the Revolving Credit Line to $21 million. On May 17, 2023, the Company repaid the outstanding balance in full and terminated the loan and security agreement initially entered into on June 22, 2022.

The components of the Company's interest expense and other debt financing expenses, average outstanding balances and average stated interest rates (i.e. the rate in effect plus spread) were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
|  Interest expense - Secured Credit Facility | $7983145 | $11099472 | $12108069 |
|  Interest expense - Revolving Credit Facility<br>| - | - | 38624 |
|  Unused commitment fees | 429556 | 322139 | 278783 |
|  Amortization of deferred financing costs | 620769 | 593706 | 627611 |
|  Utilization fees | (959718) | 729919 | 1141897 |
| &nbsp;&nbsp;&nbsp; Total interest and other debt financing expenses<br>| $8073752 | $12745236 | $14194984 |
|  Average debt outstanding | $115265616 | $136628415 | $154152055 |
|  Average stated interest rate | 6.93% | 8.10% | 7.88% |

---

#### Note 8. Income Taxes
The amount of taxable income to be paid out as a distribution is determined by the Board each quarter and generally is based upon the annual earnings estimated by management of the Company. Net capital gains, if any, are distributed at least annually, although the Company may decide to retain all or some of those capital gains for investment and pay corporate-level income taxes on those retained amounts. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. In the event the Company's taxable income (including any net capital gains) for a fiscal year fall below the amount of distributions declared and paid with respect to that year, however, a portion of the total amount of those distributions may be deemed a return of capital for tax purposes to the Company's stockholders.

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

The calculation of reclassifications due to permanent book-to-tax differences and tax character of distributions declared are performed at each calendar year end and have no impact on net assets.

The following temporary differences were reclassified for tax purposes for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
|  Increase (decrease) in capital in excess of par value | $3844330 | $2281202 | $- |
|  Increase (decrease) in accumulated undistributed (overdistributed) earnings | (3844330) | (2281202) | - |

---

Taxable income generally differs from net increase (decrease) in net assets resulting from operations for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses and generally excludes unrealized gain (loss) on investments as investment gains and losses are not included in taxable income until they are realized. The temporary and permanent differences in the recognition of income and expenses for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 are primarily due to organizational cost amortization.

Capital losses in excess of capital gains earned in a tax year may generally be carried forward and used to offset capital gains, subject to certain limitations. Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred after September 30, 2011 are not subject to expiration and retain their character as either short-term or long-term capital losses. As of December 31, 2025 and December 31, 2024, the Company had no short-term capital loss carryforwards. As of December 31, 2025 and December 31, 2024, the Company had no long-term capital loss carryforwards.

The following table reconciles the components of accumulated undistributed (overdistributed) earnings:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
| Net accumulated change in unrealized (gain) loss | $(15777316) | $(3436628) | $(1559013) |
| Undistributed ordinary income | 656675 | 2059588 | 701484 |
| Net accumulated capital gain/ (loss) |  | 1309553 |  |
| Other cumulative effect of timing differences | (4223036) | (206545) | (224715) |
| Total accumulated undistributed (overdistributed) earnings | $(19343677) | $(274032) | $(1082244) |

---

For income tax purposes, distributions paid to stockholders are reported as ordinary income, return of capital, redemption, long term capital gains or a combination thereof.

The following table provides the tax character of distributions declared for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
|  Ordinary income | $22467977 | $20652462 | $22097019 |
|  Long-term capital gains | 812178 | 671887 | 3773 |
|  Total | $23280155 | $21324349 | $22100792 |

---

As of December 31, 2025, the estimated cost basis of investment for U.S. federal income tax purposes was $390,821,061 resulting in estimated net unrealized loss of $15,777,316 comprised of estimated gross unrealized gains of $24,160,846 and gross unrealized losses of $39,938,162. As of December 31, 2024, the cost basis of investment for U.S. federal income tax purposes was $381,076,946, resulting in net unrealized loss of $3,436,628, comprised of gross unrealized gains of $22,403,590 and gross unrealized losses of $25,840,218. As of December 31, 2023, the cost basis of investment for U.S. federal income tax purposes was $378,551,985, resulting in net unrealized gain of $1,559,013, comprised of gross unrealized gains of $20,541,825, and gross unrealized losses of $22,100,838.

The Company recognized the following excise taxes related to the Company's status as a RIC:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
|  Excise tax expense | $79746 | $37907 | $- |
| Total | $79746 | $37907 | $- |

---

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As of December 31, 2025 and December 31, 2024, $79,746 and $37,907 of excise taxes remained payable respectively.

The Company recognized the following benefits (provisions) for taxes on unrealized appreciation and depreciation on investments:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** |
|  | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
|  Benefit (provision) for taxes on change in unrealized appreciation (depreciation) on investments | $2059533 | $(6094196) | $- |
| Total | $2059533 | $(6094196) | $- |

---

As of December 31, 2025 and December 31, 2024, $4,034,663 and $6,094,196 was included in deferred tax liabilities on the Consolidated Statements of Assets and Liabilities primarily relating to deferred taxes on unrealized gains on investments held in the Company's subsidiary and other temporary book to tax differences of the subsidiary.

The Company recognized the following income tax expense related to taxes on capital gains from the Holding Company

---

| | |
|:---|:---|
|  | **As of December 31, 2025** |
|  Income tax expense | $761000<br>|
| Total | $761000<br>|

---

As of December 31, 2025 $0 of income taxes remained payable.

#### Note 9. Stock Issuances
As of December 31, 2025 and December 31, 2024, the total number of shares of all classes of capital stock that the Company has the authority to issue was 200,000,000 shares of Common Stock, par value $0.001 per share.

New Stockholders admitted to the Company or existing Stockholders increasing their Capital Commitments at a particular Closing will be required to purchase shares of the Company with an aggregate purchase price necessary to ensure that all Stockholders in the Company have generally contributed the same percentage of their Capital Commitments to the Company immediately following such purchase (a "Catch-up Purchase") and each such Stockholder shall be issued a number of shares of the Company based on a per share purchase price determined by the Board. A Catch-up Purchase may be made in multiple installments as determined by the Advisor based on the Company's capital requirements. The per share purchase price shall be at least equal to the NAV per share in accordance with the limitations of Section 23 of the 1940 Act. The Board may set the price per share above the NAV per share based on a variety of factors, including without limitation, the total amount of the Company's organizational and other expenses that will have accrued following the Company's Initial Closing.

For the year ended December 31, 2025, the Company entered into subscription agreements (collectively, the "Subscription Agreements") with new investors, providing for the private placement of common shares. Under the terms of the Subscription Agreements, investors are required to fund drawdowns to purchase common shares up to the amount of their respective capital commitments on an as-needed basis with a minimum of 8 business days' prior notice. As of December 31, 2025 and December 31, 2024, the Company had received capital commitments totaling $292,885,780 and $273,072,762, respectively.

As of December 31, 2025, net contributions of $285,464,558 had been made by Stockholders and $7,421,222 remained available to be drawn by the Company. As of December 31, 2024, net contributions of $266,475,040 had been made by Stockholders and $6,597,722 remained available to be drawn by the Company.

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The following tables summarize the issuance of shares for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
| **For the year ended December 31, 2025** | | | |
| April 21, 2025 | $24.52 | 357811 | $8773518 |
| June 13, 2025 | 24.13 | 89598 | 2162000 |
| September 26, 2025 | 23.91 | 153074 | 3660000 |
| December 19, 2025 | 23.72 | 204258 | 4845000 |
|  |  | 804741 | $19440518 |
| **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
| **Stock issued in connection with dividend reinvestment plan** |  |  |  |
| January 31, 2025 | $24.47 | 109175 | $2671518 |
|  May 20, 2025 | 24.55 | 113516 | 2786818 |
|  August 19, 2025 | 24.44 | 110384 | 2697778 |
| November 19, 2025 | 24.29 | 112130 | 2724069 |
|  |  | 445205 | $10880183 |
| &nbsp;&nbsp;&nbsp; Total |  | 1249946 | $30320701 |

---

---

| | | | |
|:---|:---|:---|:---|
|  **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
|  **For the year ended December 31, 2024** | | | |
|  April 8, 2024 | $24.96 | 250250 | $6246250 |
|  June 11, 2024 | 24.79 | 562949 | 13955500 |
|  September 17, 2024 | 23.83 | 717571 | 17099715 |
|  December 19, 2024 | 24.37 | 1027031 | 25028750 |
|  |  | 2557801 | $62330215 |
| **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
|  **Stock issued in connection with dividend reinvestment plan** |  |  |  |
|  January 31, 2024 | $24.98 | 120133 | $3000821 |
|  May 16, 2024 | 24.95 | 113756 | 2838215 |
|  August 19, 2024 | 23.96 | 103753 | 2527833 |
|  November 19, 2024 | 24.43 | 90839 | 2178007 |
|  |  | 428481 | $10544876 |
| &nbsp;&nbsp;&nbsp; Total |  | 2986282 | $72875091 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
|  **For the year ended December 31, 2023** | | | |
|  March 21, 2023 | $25.31 | 803600 | $20339128 |
|  May 15, 2023 | 25.30 | 343695 | 8695500 |
|  August 28, 2023 | 25.49 | 179590 | 4577750 |
|  December 8, 2023 | 25.41 | 198169 | 5035468 |
|  |  | 1525054 | $38647846 |
| **Date** | **Price per share** | **Shares Issued** | **Proceeds** |
|  **Stock issued in connection with dividend reinvestment plan** |  |  |  |
|  January 26, 2023 | $25.34 | 86086 | $2181430 |
|  May 5, 2023 | 25.38 | 98060 | 2488754 |
|  July 31, 2023 | 25.56 | 100593 | 2571168 |
|  November 10, 2023 | 25.55 | 114935 | 2936599 |
|  |  | 399674 | $10177951 |
| &nbsp;&nbsp;&nbsp; Total |  | 1924728 | $48825797 |

---

Note 10. Discretionary Repurchase of Shares of Common Stock and Distributions

Beginning with the quarter ended September 30, 2022, the Company began to conduct quarterly tender offers, at the Board's discretion, in accordance with the requirements of Rule 13e-4 under the Exchange Act and the 1940 Act, to permit Stockholders to tender their shares of common stock at a specific per share price ("Purchase Price") based on the Company's NAV as of the last date of the quarter in which the tender offer is conducted. The Company intends to conduct each tender offer to repurchase up to 2.5% of the number of shares of common stock outstanding as of the end of the prior quarter in which the tender offer is conducted, subject to numerous restrictions that limit Stockholders' ability to sell their shares of common stock.

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[*Table of Contents*](#TOC)

The following tables summarize the repurchase of shares for the years ended December 31, 2025, 2024 and 2023.

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **Purchase Price\*** | **Shares Repurchased** | **Amounts** |
| **Stock repurchased in connection with tender offer** | | | |
| March 31, 2025 | $24.55 | 256233.52 | $6290542 |
| June 30, 2025 | 24.44 | 242756.06 | 5932958 |
| September 30, 2025 | 24.29 | 250938.16 | 6095288 |
| December 31, 2025\*\* | 23.45 | 251759.98 | 5903771 |
| Total |  | 1001687.72<br>| $24222559<br>|

---

\*As of December 31, 2025, stock repurchased in connection with tender offers was completed at a price of $23.45. At the time, an estimated NAV was used due to the requirement to make payment within 60 days. Following the completion of the audit the NAV as of December 31, 2025, was updated to $23.48.

\*\*As of December 31, 2025, stock repurchased in connection with tender offers remained payable as shown in redemptions payable on the Consolidated Statements of Assets and Liabilities.

---

| | | | |
|:---|:---|:---|:---|
|  **Date** | **Purchase Price\*** | **Shares Repurchased** | **Amounts** |
|  **Stock repurchased in connection with tender offer** | | | |
|  March 29, 2024 | $25.10 | 192187.05 | $4823944 |
|  June 28, 2024 | 24.38 | 190664.58 | 4648553 |
|  September 30, 2024 | 24.27 | 209505.99 | 5084710 |
|  December 31, 2024\*\* | 25.08 | 224106.25 | 5637891 |
| Total |  | 816463.87 | $20195098 |

---

\*As of December 31, 2024, stock repurchased in connection with tender offers was completed at a purchase price of $25.08. At the time, an estimated NAV was used due to the requirement to make payment within 60 days. Following the completion of the audit, the NAV as of December 31, 2024, was updated to $24.43.

\*\*As of December 31, 2024, stock repurchased in connection with tender offers remained payable as shown in redemptions payable on the Consolidated Statements of Assets and Liabilities.

---

| | | | |
|:---|:---|:---|:---|
| Date | **Purchase Price\*** | **Shares Repurchased** | **Amounts** |
|  **Stock repurchased in connection with tender offer** |  |  |  |
|  December 31, 2022\* | $25.21 | 108930.54 | $2746138 |
|  March 31, 2023 | 25.80 | 164813.65 | 4252192 |
|  June 30, 2023 | 26.06 | 180212.21 | 4696330 |
|  September 30, 2023 | 26.01 | 186750.79 | 4857388 |
|  December 31, 2023\*\* | 24.78 | 189088.61 | 4700694 |
| Total |  | 829795.80 | $21252742 |

---

\*On December 15, 2022 the Company commenced a tender offer for repurchase of common shares. The tender offer expired on January 16, 2023 and the stock repurchased in connection with the tender offer was recorded and paid out as capital activity for 2023.

\*\*As of December 31, 2023, stock repurchased in connection with tender offers remained payable as shown in redemptions payable on the Consolidated Statements of Assets and Liabilities.

The Company's distributions are recorded on the record date. For the year ended December 31, 2025, distributions declared to Stockholders totaled $23,280,155 of which $9,271,392 was paid as a cash distribution and $8,208,665 was paid in the form of 445,205 shares of the Company's common stock issued to existing Stockholders. Subsequent to December 31, 2025, distributions of $3,029,328 will be paid out in cash and $2,770,770 will be paid in the form of the Company's common stock issued to existing Stockholders. Distribution payments have been made in accordance with Stockholders DRP payment election as disclosed in Note 2.

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The following table summarizes the settlement of distributions declared and recorded during the year ended December 31, 2025, and the subsequent payment and issuance of those distributions for the year ended December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment/Issuance Date** | **Amount Per Share** | **Amount Paid in Cash** | **Amount Settled via** <br> **Newly Issued Shares** | **Total** |
|  **For the year ended December 31, 2025** |  |  | | | | |
|  April 1, 2025 | April 23, 2025 | May 20, 2025 | $0.57 | $2951972 | $2786818 | $5738790 |
|  July 1, 2025 | July 7, 2025 | August 19, 2025 | 0.59 | 3218985 | 2697778 | 5916763 |
|  October 1, 2025 | October 10, 2025 | November 19, 2025 | 0.58 | 3100435 | 2724069 | 5824504 |
|  December 30, 2025 | December 31, 2025 | January 30, 2026 | 0.56 | 3029328 | 2770770 | 5800098 |
| Total |  |  | $2.30 | $12300720 | $10979436 | $23280155 |

---

As of December 31, 2025, $5,800,098 of distributions declared and recorded remained payable as shown in distributions payable on the Consolidated Statements of Assets and Liabilities. As of December 31, 2025, $10,880,183 of distributions as shown in stock issued in connection with dividend reinvestment program on the Statements of Changes in Net Assets includes the effect of distributions payable as of December 31, 2024.

The following table summarizes the settlement of distributions declared and recorded and the subsequent payment and issuance of those distributions for the year ended December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment/Issuance Date** | **Amount Per Share** | **Amount Paid in Cash** | **Amount Settled via**<br> **Newly Issued Shares** | **Total** |
|  **For the year ended December 31, 2024** |  |  | | | | |
| April 3, 2024 | April 3, 2024 | May 16, 2024 | $0.75 | $3061044 | $2838215 | $5899259 |
| July 11, 2024 | July 11, 2024 | August 19, 2024 | 0.63 | 2733750 | 2527833 | 5261583 |
| October 4, 2024 | October 4, 2024 | November 19, 2024 | 0.54 | 2592284 | 2178007 | 4770291 |
| December 31, 2024 | December 31, 2024 | January 30, 2025 | 0.54 | 2651213 | 2671518 | 5322731 |
| Total |  |  | $2.46 | $11038291 | $10215573 | $21253864 |

---

The following table summarizes the settlement of distributions declared and recorded and the subsequent payment and issuance of those distributions for the year ended December 31, 2023:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  **Date Declared** | **Record Date** | **Payment/Issuance Date** | **Amount Per Share** | **Amount Paid in Cash** | **Amount Settled via** <br> **Newly Issued Shares** | **Total** |
| **For the year ended December 31, 2023** |  |  | | | | |
|  April 3, 2023 | April 3, 2023 | May 5, 2023 | $0.69 | $2485103 | $2488754 | $4973857 |
| July 3, 2023 | July 3, 2023 | July 31, 2023 | 0.69 | 2583154 | 2571168 | 5154322 |
|  October 4, 2023 | October 4, 2023 | November 10, 2023 | 0.78 | 2962903 | 2936599 | 5899502 |
|  December 29, 2023 | December 31, 2023 | January 31, 2024 | 0.79 | 3008410 | 3064701 | 6073111 |
| Total |  |  | $2.95 | $11039570 | $11061222 | $22100792 |

---

#### Note 11. Commitments, Contingencies, and Risks
*Commitments:* As of December 31, 2025 and December 31, 2024, the Company had $5,692,616 and $20,353,563, respectively, in outstanding commitments to direct investments. As of December 31, 2025 and December 31, 2024 the Company had $1,101,695 and $1,101,695, respectively, in outstanding commitments to fund investments.

---

| | |
|:---|:---|
| **December 31, 2025** | **Outstanding**<br> **Commitments** |
|  **Direct Investments** | |
| Ambient Enterprises Holdco LLC | $1922310 |
|  IPA Intermediate Co., LLC<br>| 212766 |
|  MechanAir, LLC | 3557540 |
| &nbsp;&nbsp;&nbsp; **Total Direct Investments** | $5692616 |
| **Fund Investments** |  |
|  Madryn Select Opportunities, LP | $1101695 |
| &nbsp;&nbsp;&nbsp; **Total Fund Investments** | $1101695 |
| &nbsp;&nbsp;&nbsp; **Total** | $6794311 |

---

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[*Table of Contents*](#TOC)

---

| | |
|:---|:---|
| **December 31, 2024** | **Outstanding**<br> **Commitments** |
| **Direct Investments** | |
| Ambient Enterprises Holdco LLC | $1773731 |
|  Kelso Industries | 5000000 |
| Qualified Digital, LLC | 6857143 |
| The Range NYC, LLC (dba Five Iron Golf) | 6722689 |
| &nbsp;&nbsp;&nbsp; **Total Direct Investments** | $20353563 |
| **Fund Investments** |  |
| Madryn Select Opportunities, LP | $1101695 |
| &nbsp;&nbsp;&nbsp; **Total Fund Investments**<br>| $1101695 |
| &nbsp;&nbsp;&nbsp; **Total**<br>| $21455258 |

---

Management believes that the Company's available cash balance and the balance available to be drawn from the Secured Credit Facility provide sufficient funds to cover its unfunded commitments as of December 31, 2025 and December 31, 2024.

*Indemnifications:* In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnification. The Company's maximum exposure under these agreements is unknown, as these involve future claims that may be made against the Company but that have not occurred. The Company expects the risk of any future obligations under these indemnification provisions to be remote.

*Legal proceedings:* In the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company is not currently aware of any such proceedings or disposition that would have a material adverse effect on the Company's consolidated financial statements.

*Concentration of credit and counterparty risk:* Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of the contract. In the event that the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparties or issuers of the instruments. It is the Company's policy to review, as necessary, the credit standing of each counterparty.

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#### Note 12. Financial Highlights
The following is a schedule of financial highlights for the years ended December 31, 2025, 2024, 2023, 2022 and the period from May 14, 2021 to December 31, 2021:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the year ended** | **For the year ended** | **For the year ended** | **For the year ended** | |
|  | **December 31, 2025** | **December 31, 2024** | <br> **December 31, 2023** | <br> **December 31, 2022** |<br>**For the period**<br> **May 14, 2021\* to**<br> **December 31, 2021** |
|  **Per share data:** | | | | | |
|  Net asset value at beginning of period | $24.43 | $24.78 | $25.21 | $25.26 | $25.00 |
|  Net investment income (loss) <sup>(1)</sup> | 1.92 | 2.42 | 3.02 | 2.47 | 0.80 |
|  Net realized and unrealized gain (loss), net of taxes <sup>(1)</sup> | (0.57) | (0.19) | (0.46) | (0.18) | 0.12 |
|  Net increase (decrease) in net assets resulting from operations <sup>(1)</sup> | 1.35 | 2.23 | 2.56 | 2.29 | 0.92 |
|  Stockholder distributions <sup>(2)</sup> | (2.30) | (2.46) | (1.87) | (1.20) | (0.36) |
|  Dividend reinvestment plan distributions <sup>(2)</sup> | (1.08) | (1.58) | (1.08) | (0.99) | (0.41) |
|  Other <sup>(3)</sup> | 1.08 | 1.46 | (0.04) | (0.15) | 0.11 |
|  Net asset value at end of period | $23.48 | $24.43 | $24.78 | $25.21 | $25.26 |
|  Net assets at end of period | $237231019 | $240830105 | 190460589 | 166216773 | 70162127 |
|  Shares outstanding at end of period | 10105559 | 9857301 | 7687482 | 6592546 | 2777449 |
|  Total return <sup>(4)</sup> | 5.40% | 9.89% | 9.64% | 5.91% | 4.13% |
|  **Ratio/Supplemental data:** |  |  |  |  |  |
|  Ratio of expenses to average net assets before incentive fees and waivers<sup>(5)</sup> | 6.89% | 9.91% | 11.80% | 10.53% | 5.92% |
|  Ratio of expenses to average net assets after incentive fees and before waivers<sup>(5)</sup> | 8.27% | 11.86% | 14.49% | 12.30% | 6.28% |
|  Ratio of expenses to average net assets after incentive fees and waivers <sup>(5)</sup> | 8.27% | 11.25% | 13.59% | 10.08% | 6.28% |
|  Ratio of net investment income (loss) to average net assets before incentive fees and waivers<sup>(5)</sup> | 9.24% | 11.14% | 13.77% | 9.23% | 5.41% |
|  Ratio of net investment income (loss) to average net assets after incentive fees and before waivers<sup>(5)</sup> | 7.85% | 9.19% | 11.07% | 7.47% | 5.05% |
|  Ratio of net investment income (loss) to average net assets after incentive fees and waivers<sup>(5)</sup> | 7.85% | 9.80% | 11.97% | 9.68% | 5.05% |
|  Portfolio turnover <sup>(6)</sup> | 20.69% | 14.48% | 5.19% | 5.17% | 4.22% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The per share data was derived by using the weighted average shares outstanding during the period presented.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a
 tax return of capital may occur for the year. To the extent the Company's taxable earnings fall below the total amount of the Company's distributions for that fiscal year, a portion of those distributions may be deemed a tax return
 of capital to the Company's stockholders. The tax character of distributions was $22,467,977 and $812,178 of ordinary income and long term capital gain, respectively, for the year ended December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Includes the impact of different share amounts used in calculating per share data as a result of calculating certain per
 share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of a period end or transaction date.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Total return is calculated as the change in NAV per share during the period, divided by the beginning
 NAV per share and assumes reinvestment of dividends at NAV. Total return is not annualized.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Ratios are annualized for periods less than one year. To the extent incentive fees and waivers are included within the ratio,
 they are not annualized.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Ratio is not annualized.

\* Date of formation of the Company

13. Subsequent Events

The Company has evaluated subsequent events through March 31, 2026, the date on which the consolidated financial statements were issued.

On February 25, 2026, the Company's Board held a meeting in which the Board, including a majority of the Independent Directors, approved certain matters related to the Company's ability to issue and sell Class D shares, Class S shares, Class I shares and Class SP shares pursuant to the Multi-Class Order. The different share classes have varying fee structures, including differences in distribution and servicing fees, as well as sales loads.

Effective March 31, 2026, the Company entered into a distribution and servicing plan in compliance with Rule 12b-1 under the 1940 Act, a multiple class plan in compliance with Rule 18f-3 under the 1940 Act and an expense waiver agreement between the Company and the Advisor, whereby the Advisor agreed to reimburse a portion of Class SP's expenses (excluding management fees, acquired fund fees and expenses, taxes and custody fees) equal to 0.25% of Class SP's average quarterly net assets, on an annualized basis (the "Expense Waiver Agreement"). The Advisor may not recoup expenses reimbursed pursuant to the Expense Waiver Agreement for Class SP's other expenses.

On January 2, 2026, the Company entered into a Note Purchase Agreement governing the issuance of $25,000,000 in aggregate principal amount of Floating Rate Senior Unsecured Notes due January 15, 2029, with a floating interest rate per annum equal to the SOFR (which is based on the TSFR3M Index Screen Rate and more fully defined in the Note Purchase Agreement) plus 3.75% to a qualified institutional investor in a private placement.

On December 23, 2025, the Company issued a capital call of $1,155,000 which was due to the Company on January 6, 2026.

Pursuant to a capital drawdown notice to its investors, Star Mountain Lower Middle-Market Capital Corp. (the "Company") issued and sold 49,191 shares of the Company's common stock, par value $0.001 per share (the "Common Stock"), on March 26, 2026, for an aggregate offering price of $1,155,000.

On December 31, 2025 the Company declared a dividend of $0.56 per share to Stockholders of record as of December 31, 2025, which was paid in the form of cash and shares on January 30, 2026. On January 30, 2026 the Company paid a total distribution of $5,800,098, of which $3,029,328 was paid in cash and $2,770,770 in the form of shares.

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[*Table of Contents*](#TOC)

#### SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| Date: March 31, 2026 | Star Mountain Lower Middle-Market Capital Corp. | Star Mountain Lower Middle-Market Capital Corp. | Star Mountain Lower Middle-Market Capital Corp. |
|  | By: | /s/ <br>| Brett A. Hickey |
|  | Name: |  | Brett A. Hickey |
|  | Title: |  | Chief Executive Officer and President |
| Date: March 31, 2026 | By:<br>| /s/  | Christopher J. Gimbert |
|  | Name: |  | Christopher J. Gimbert |
|  | Title: |  | Chief Financial Officer |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the registrant and in the following capacities on March 31, 2026.

---

| | | |
|:---|:---|:---|
| By:<br>| /s/<br>| Brett A. Hickey |
| Name: |  | Brett A. Hickey |
| Title: |  | Chief Executive Officer, President and Director |
| By: | /s/ <br>| Christopher J. Gimbert  |
| Name: |  | Christopher J. Gimbert |
| Title: |  | Chief Financial Officer |
| By:<br>| /s/ <br>| Curtis Glovier |
| Name: |  | Curtis Glovier |
| Title: |  | Director |
| By: | /s/<br>| Jeffrey Rogers |
| Name: |  | Jeffrey Rogers |
| Title: |  | Director |
| By:<br>| /s/<br>| O. James Sterling |
| Name: |  | O. James Sterling |
| Title: |  | Director |
| By: | /s/ | David S. Kimmel |
| Name: |  | David S. Kimmel |
| Title: |  | Director |

---

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## Exhibit 4.1

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**Exhibit 4.1**<br>

DESCRIPTION OF SECURITIES

The following description is based on relevant portions of Delaware law and on the Certificate of Incorporation of the Company and bylaws. This summary is not necessarily complete, and the Company refers investors to Delaware law and the Certificate of Incorporation and bylaws for a more detailed description of the provisions summarized below. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Annual Report on Form 10-K to which this Description of Securities is attached as an exhibit.

#### General

The Company's authorized stock consists of 200,000,000 shares of common stock, par value $0.001 per share. There is currently no market for the Company's common stock, and the Company can offer no assurances that a market for its shares of common stock will develop in the future. The Company does not intend for its authorized stock to be listed on any national securities exchange. There are no outstanding options or warrants to purchase the Company's common stock. No stock has been authorized for issuance under any equity compensation plans. Under Delaware law, Stockholders generally are not personally liable for the debts or obligations of the Company.

#### Common Stock

All shares of the Company's common stock have equal rights as to earnings, assets, dividends and voting and, when they are issued, will be duly authorized, validly issued, fully paid and non-assessable. Distributions may be made or paid to the holders of the Company's common stock if, as and when declared by the Board out of funds legally available therefor. Shares of the Company's common stock have no preemptive, exchange, conversion or redemption rights. Shares of the Company's common stock are subject to certain transfer restrictions, including restrictions on transfer arising under the Certificate of Incorporation, federal and state securities laws and by contract. In the event of the Company's liquidation, dissolution or winding up, each share of the Company's common stock would be entitled to share ratably in all of the Company's assets that are legally available for distribution after the Company pays all debts and other liabilities and subject to any preferential rights of holders of shares of any series of the Company's preferred stock then outstanding. Each share of the Company's common stock is entitled to one vote on all matters submitted to a vote of stockholders generally, including the election of directors. Except as provided with respect to any other class or series of stock, including the Company's preferred stock, as more fully described below, the holders of the Company's common stock will possess exclusive voting power. There is no cumulative voting in the election of the Company's Board, which means that holders of a majority of the outstanding shares of the Company's capital stock entitled to vote in the election of such directors are entitled to elect that number of nominees equal to the number of directors to be elected by such holders, and holders of less than a majority of such shares will be unable to elect one or more specific directors for any available directorship. In addition, holders of the Company's common stock may participate in its dividend reinvestment plan ("Dividend Reinvestment Plan").

#### Class I Shares
The Company will not charge upfront sales load for sales of any Class I shares. However, if you purchase Class I shares from certain third-party financial intermediaries, they may directly charge you transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine. No stockholder servicing and/or distribution fees are paid for sales of any Class I shares. The Company's investment adviser, Star Mountain Fund Management, LLC (the "Investment Advisor"), or its affiliates may, in its discretion, pay additional compensation to selected brokers, dealers or other financial intermediaries out of its own funds and not as an additional charge to the Company or stockholders.

Class I shares generally are available for purchase in the Company's offering by only institutional investors, defined benefit plans, endowments and foundations, investment companies, corporations, insurance companies, trust companies, clients of and accounts/programs offered by certain financial intermediaries and wealth managers such as registered investment advisors, broker-dealers, bank trust departments, wrap fee programs, unified managed accounts, other institutional investors not specifically enumerated and other categories of investors that the Company names in an amendment or supplement to its Private Placement Memorandum.

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In addition, in certain cases, where a holder of Class S, Class D or Class SP shares exits a relationship with a participating broker for the Company's offering and does not enter into a new relationship with a participating broker for the Company's offering, such holder's shares may be exchanged into an equivalent NAV amount of Class I shares. The Company may offer Class I shares to certain feeder vehicles primarily created to hold its Class I shares, which, in turn, will offer interests in themselves to qualified investors. The Company expects to conduct such offerings pursuant to available exemptions from registration under the Securities Act of 1933, as amended (the "Securities Act"). Such feeder vehicles may have additional costs and expenses, which would be disclosed in connection with the offering of their interests. The Company may also offer Class I and Class SP shares to other investment vehicles.

If you are eligible to purchase all four classes of shares (when all of such classes are available for sale), you should be aware that Class I and Class SP shares have no stockholder servicing or distribution fees, which will reduce the distributions of the other share classes. However, Class I and Class SP shares will not receive stockholder services.

#### Class S Shares
The Company will not charge upfront sales load for sales of any Class S shares. However, if you purchase Class S shares from certain financial intermediaries, they may directly charge you transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine, provided that they limit such charges to a 3.5% cap on NAV for Class S shares.

The Company will pay such financial intermediaries selling commissions over time as a stockholder servicing and/or distribution fee with respect to its outstanding Class S shares equal to 0.75% per annum of the aggregate NAV. The stockholder servicing and/or distribution fees will be paid quarterly. Such financial intermediaries reallow (pay) all or a portion of the stockholder servicing and/or distribution fees to participating brokers and servicing brokers for ongoing stockholder services performed by such brokers and will waive stockholder servicing and/or distribution fees to the extent a broker is not eligible to receive it for failure to provide such services.

The Investment Advisor or its affiliates may, in its discretion, pay additional compensation to selected brokers, dealers or other financial intermediaries out of its own funds and not as an additional charge to the Company or stockholders.

Class S shares are available for purchase in the Company's offering by transactional advisors affiliated with FINRA registered broker-dealers and other categories of investors that we name in an amendment or supplement to its Private Placement Memorandum.

#### Class D Shares
The Company will not charge upfront sales load for sales of any Class D shares. However, if you purchase Class D shares from certain financial intermediaries, they may directly charge you transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine, provided that they limit such charges to a 1.5% cap on NAV for Class D shares.

The Company will pay such financial intermediaries selling commissions over time as a stockholder servicing and/or distribution fee with respect to its outstanding Class D shares equal to 0.25% per annum of the aggregate NAV, which is payable quarterly in arrears. The stockholder servicing and/or distribution fees will be paid quarterly in arrears. The Placement Agent reallows (pays) all or a portion of the stockholder servicing and/or distribution fees to participating brokers and servicing brokers for ongoing stockholder services performed by such brokers and will waive stockholder servicing and/or distribution fees to the extent a broker is not eligible to receive it for failure to provide such services.

The Investment Advisor or its affiliates may, in its discretion, pay additional compensation to selected brokers, dealers or other financial intermediaries out of its own funds and not as an additional charge to the Company or stockholders.

------

Class D shares generally are available for purchase in the Company's offering by only hybrid registered investment advisors and other categories of investors that the Company names in an amendment or supplement to its Private Placement Memorandum.

#### Class SP Shares
The Company will not charge upfront sales load for sales of any Class SP shares. However, if you purchase Class SP shares from certain third-party financial intermediaries, they may directly charge you transaction or other fees, including upfront placement fees or brokerage commissions, in such amount as they may determine. No stockholder servicing and/or distribution fees are paid for sales of any Class SP shares. The Investment Advisor, or its affiliates may, in its discretion, pay additional compensation to selected brokers, dealers or other financial intermediaries out of its own funds and not as an additional charge to the Company or stockholders.

Class SP shares generally are available for purchase in the Company's offering only by institutional investors, defined benefit plans, endowments and foundations, investment companies, corporations, insurance companies, trust companies, clients of and accounts/programs offered by certain financial intermediaries and wealth managers such as registered investment advisors, broker-dealers, bank trust departments, wrap fee programs, unified managed accounts and other institutional investors not specifically enumerated who meet certain eligibility requirements.

If you are eligible to purchase all four classes of shares (when all of such classes are available for sale), you should be aware that Class SP shares have no stockholder servicing or distribution fees, which will reduce the distributions of the other share classes. However, Class SP shares will not receive stockholder services.

#### Exchange of Shares Between Classes

A stockholder may be permitted to exchange shares of the Company's common stock between classes of such shares that a stockholder may otherwise be eligible to purchase through its financial intermediary, provided that, among other things: (1) the stockholder's aggregate investment would have met the minimum initial investment requirements in the applicable class at the time of purchase and continues to meet those requirements; (2) the shares of common stock are otherwise available for offer and sale; and (3) the investment meets all other requirements, including stockholder eligibility, for investment in the applicable class. When an individual stockholder cannot meet the minimum initial investment requirements of the applicable class, exchanges of shares from one class to the applicable class may be permitted, in the Company's sole discretion, if such stockholder's investment is made by an intermediary that has discretion over the account and has invested other clients' assets in the Company, which when aggregated together with such investor's investment, meet the minimum initial investment requirements for the applicable class. Investors will not be charged any fees by the Company for such exchanges. Ongoing fees and expenses incurred by a given class will differ from those of other share classes, and an investor receiving new shares in an exchange may be subject to lower total expenses charged by the Company following such exchange. Exchange transactions will be effected only into an identically registered account. While exchange transactions between share classes of the Company are generally not taxable for federal income tax purposes, investors are urged to consult their tax advisors as to the U.S. federal, state, local and non-U.S. tax consequences of an exchange. The Company also reserves the right to revise or terminate the exchange privilege, limit the amount or number of exchanges or reject any exchange.

Assuming the exchange meets the eligibility requirements of the class into which such stockholder seeks to exchange and the Company has received proper instruction from the financial intermediary to effect such exchange and consents to such exchange, a financial intermediary may, in its discretion, determine to exchange a stockholder's shares of common stock at such stockholder's request.

#### Other Terms of Shares
The Company will cease paying the stockholder servicing and/or distribution fee on the Class S shares and Class D shares on the earlier to occur of the following: (i) a listing of Class I shares, (ii) the Company's merger or consolidation with or into another entity, or the sale or other disposition of all or substantially all of its assets or (iii) the date following the completion of the primary portion of the Company's offering on which, in the aggregate, underwriting compensation from all sources in connection with the offering, including the stockholder servicing and/or distribution fee and other underwriting compensation, is equal to 10% of the gross proceeds from the Company's primary offering.

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In addition, as required by exemptive relief that allows the Company to offer multiple classes of shares of common stock, at the end of the month in which the participating brokers in conjunction with the Company and/or its agents determine that stockholder servicing and/or distribution fees paid by the Company with respect to any single share held in a stockholder's account would exceed, in the aggregate, 10% of the gross proceeds from the sale of such share (or a lower limit as determined by the participating broker and the applicable selling agent), the Company will cease paying the stockholder servicing and/or distribution fee on either (i) each such share that would exceed such limit or (ii) all Class S shares and Class D shares in such stockholder's account. The Company may modify this requirement if permitted by applicable exemptive relief. At the end of such month, the applicable Class S shares or Class D shares in such stockholder's account will convert into a number of Class I shares (including any fractional shares), with an equivalent aggregate NAV as such Class S or Class D shares.

#### Preferred Stock

The Company does not intend to issue preferred stock.

#### Provisions of Delaware General Corporation Law (the "DGCL") and the Certificate of Incorporation and Bylaws

#### Delaware Anti-Takeover Law

The DGCL contains, and the Company's certificate of incorporation and bylaws also contain, provisions that could make it more difficult for a potential acquirer to acquire the Company by means of a tender offer, proxy contest or otherwise. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of the Company to negotiate first with the Board. These measures may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of the Company's stockholders. The Company believes, however, that the benefits of these provisions outweigh the potential disadvantages of discouraging any such acquisition proposals because the negotiation of such proposals may improve their terms.

#### Election of Directors

The Company's Certificate of Incorporation and bylaws provide that the affirmative vote of the holders of a majority of the votes cast by Stockholders present in person or by proxy at an annual or special meeting of Stockholders and entitled to vote at such meeting is required to elect a director. Under the Company's Certificate of Incorporation, the Board may amend the bylaws to alter the vote required to elect directors.

#### Classified Board of Directors

Under the Company's certificate of incorporation, the Company's directors are divided into three classes of directors, serving staggered three-year terms, with the term of office of directors in only one of the three classes expiring each year. As a result, one-third of such directors will then be elected each year. A classified board may render a change in control of the Company or removal of the Company's incumbent management more difficult. The Company believes, however, that, the longer time required to elect a majority of a classified board will help to ensure the continuity and stability of its management and policies.

#### Number of Directors; Removal; Vacancies

The Certificate of Incorporation provides that the number of directors is set only by the board in accordance with the bylaws. The bylaws provide that a majority of the entire Board may at any time increase or decrease the number of directors. However, unless the bylaws are amended, the number of directors may never be less than four nor more than eight. Under the DGCL, unless the certificate of incorporation provides otherwise (which the Company's Certificate of Incorporation does not), directors on a classified board such as the Board may be removed only for cause. Under the Certificate of Incorporation and bylaws, any vacancy on the Board, including a vacancy resulting from an enlargement of the Board, may be filled only by vote of a majority of the directors then in office. The limitations on the ability of Stockholders to remove directors and fill vacancies could make it more difficult for a third party to acquire, or discourage a third party from seeking to acquire, control of the Company.

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#### Action by Stockholders

The Certificate of Incorporation provides that any action required or permitted to be taken at any annual or special meeting of the stockholders may be taken without a meeting if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each stockholder entitled to vote on the matter and is filed with the records of the meetings of the stockholders.

#### Advance Notice Provisions for Stockholder Nominations and Stockholder Proposals

The Company's bylaws provide that with respect to an annual meeting of Stockholders, nominations of persons for election to the Board and the proposal of business to be considered by Stockholders may be made only (1) by or at the direction of the Board, (2) pursuant to the Company's notice of meeting or (3) by a Stockholder who is entitled to vote at the meeting and who has complied with the advance notice procedures of the bylaws. Nominations of persons for election to the Board at a special meeting may be made only by or at the direction of the Board, and provided that the Board has determined that directors will be elected at the meeting, by a Stockholder who is entitled to vote at the meeting and who has complied with the advance notice provisions of the bylaws.

The purpose of requiring Stockholders to give the Company advance notice of nominations and other business is to afford the Board a meaningful opportunity to consider the qualifications of the proposed nominees and the advisability of any other proposed business and, to the extent deemed necessary or desirable by the Board, to inform Stockholders and make recommendations about such qualifications or business, as well as to provide a more orderly procedure for conducting meetings of Stockholders. Although the Company's bylaws do not give the Board any power to disapprove Stockholder nominations for the election of directors or proposals recommending certain action, they may have the effect of precluding a contest for the election of directors or the consideration of Stockholder proposals if proper procedures are not followed and of discouraging or deterring a third party from conducting a solicitation of proxies to elect its own slate of directors or to approve its own proposal without regard to whether consideration of such nominees or proposals might be harmful or beneficial to the Company and its Stockholders.

#### Stockholder Meetings

The Company's Certificate of Incorporation provides that any action required or permitted to be taken by Stockholders at an annual meeting or special meeting of Stockholders may only be taken if it is properly brought before such meeting. In addition, in lieu of such a meeting, any such action may be taken by the written consent of the Company's Stockholders. The Company's Certificate of Incorporation also provides that, except as otherwise required by law, special meetings of the Stockholders can only be called by the Chairman of the Board, the Chief Executive Officer or the Board. In addition, the Company's bylaws establish an advance notice procedure for Stockholder proposals to be brought before an annual meeting of Stockholders, including proposed nominations of candidates for election to the Board. Stockholders at an annual meeting may only consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the Board, or by a Stockholder of record on the record date for the meeting who is entitled to vote at the meeting and who has delivered timely written notice in proper form to the secretary of the Stockholder's intention to bring such business before the meeting. These provisions could have the effect of delaying until the next Stockholder meeting Stockholder actions that are favored by the holders of a majority of the Company's outstanding voting securities.

#### Calling of Special Meetings of Stockholders

The Company's Certificate of Incorporation provides that special meetings of Stockholders may be called by the Board, the Chairman of the Board and the Chief Executive Officer.

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#### Amendments to the Certificate of Incorporation and Bylaws

Section 242 of the DGCL generally provides any amendment to the certificate of incorporation must be approved and declared advisable by the Board and adopted by the affirmative vote of holders of a majority of the outstanding shares of capital stock entitled to vote thereon, and by a majority of the outstanding stock of each class entitled to vote thereon as a class. Section 109 of the DGCL provides that, after a corporation has received payment for its capital stock, the power to adopt, amend or repeal the bylaws will be in the stockholders entitled to vote, but any corporation may, in its certificate of incorporation, confer the power to adopt, amend or repeal bylaws upon the directors. The Company's Certificate of Incorporation provides the Board with such power. The DGCL provides that the certificate of incorporation may contain provisions requiring for any corporate action the vote of a larger portion of the stock or of any class or series thereof than is required by the DGCL. The Company's Certificate of Incorporation provides that any director, or the entire Board, may be removed from office at any time only for cause and only by the affirmative vote of at least two-thirds of the votes entitled to be cast generally in the election of directors.

The Company's bylaws are able to be amended only by approval of (i) a majority of the total number of authorized directors or (ii) the affirmative vote of the holders of a majority of the outstanding shares of the Company's capital stock entitled to vote thereon.

#### Conflict with Investment Company Act

The Company's bylaws provide that, if and to the extent that any provision of the DGCL or any provision of the bylaws conflicts with any provision of the Investment Company Act, the applicable provision of the Investment Company Act will control.

#### Exclusive Forum

The Company's Certificate of Incorporation and bylaws provide that, to the fullest extent permitted by law, unless the Company consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Company to the Company or the Company's Stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, the Certificate of Incorporation or bylaws or the securities, antifraud, unfair trade practices or similar laws of any international, national, state, provincial, territorial, local or other governmental or regulatory authority, including, in each case, the applicable rules and regulations promulgated thereunder, or (iv) any action asserting a claim governed by the internal affairs doctrine shall be a federal or state court located in the state of Delaware. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Company shall be deemed, to the fullest extent permitted by law, to have notice of and consented to these exclusive forum provisions and to have irrevocably submitted to, and waived any objection to, the exclusive jurisdiction of such courts in connection with any such action or proceeding and consented to process being served in any such action or proceeding, without limitation, by United States mail addressed to the Stockholder at the Stockholder's address as it appears on the records of the Company, with postage thereon prepaid.

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## Exhibit 4.2

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#### EXHIBIT 4.2
**** 

<br>STAR MOUNTAIN LOWER <br> MIDDLE-MARKET CAPITAL CORP.<br>SUBSCRIPTION DOCUMENTS<br>![](image00001.jpg) <br>

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EXHIBIT 4.2

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Subscription Instructions

#### <br>

#### Basic Subscription Documents

Subscription to invest in shares of common stock of Star Mountain Lower Middle-Market Capital Corp. (the "**Company**") may be made only by means of the completion, execution and delivery of the following basic subscription documents:

**Subscriber Information Form**: Complete all requested information.

**Subscription Agreement**: Select the class of shares of common stock for which your subscription relates. Once completed, please date and sign the signature page to the Subscription Agreement. The Subscription Agreement may be completed by a duly authorized officer or agent on behalf of the subscriber (the "**Subscriber**"). Any person signing the Subscription Agreement in a representative capacity should type or print on the last page of the Subscription Agreement the name of the Subscriber, the name of the person signing the Subscription Agreement and the capacity in which he or she is signing. If you have any questions on which class you are eligible to subscribe to, please contact <u>investors@starmountaincapital.com</u>.

**IRS Forms W-9 and/or W-8**: If you are a "U.S. person" for U.S. federal income tax purposes,<sup>1</sup> complete and sign U.S. Internal Revenue Service ("**IRS**") Form(s) W-9 (or any successor forms) in accordance with the instructions provided by the IRS to certify your U.S. taxpayer identification number. If you are a non-U.S. person for U.S. federal income tax purposes, complete and sign the appropriate IRS Form(s) W-8 (or any successor forms). Please see Appendix C hereto.

**Supporting Documentation**: To help the government fight the funding of terrorism and money laundering activities, federal law requires the Company to obtain, verify and record certain identifying information with respect to all Subscribers. Any subscription application may be rejected if the Subscriber fails to provide required identifying information. To assist the Company in meeting its obligations and to ensure the investment is appropriately authorized, the Subscriber should submit the applicable documentation set forth in the matrices below.

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<sup>1</sup> For this purpose, a "U.S. person" generally includes (i) a citizen or resident of the United States, (ii) a partnership, corporation or other entity created or organized under the laws of the United States or any State thereof, (iii) an estate the income of which is subject to U.S. federal income tax regardless of its source, or (iv) any trust if (A) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all of the substantial decisions of the trust or (B) the trust has made a valid election to be treated as a U.S. person for U.S. federal income tax purposes.

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#### Matrix for Required Items

**Natural Persons**<br>

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| | | | |
|:---|:---|:---|:---|
| **US Individuals** | **Non-US Individuals** |  | **IRA** |
| Unexpired government issued photo ID of each Subscriber showing address, date of birth and signature | Unexpired government issued photo ID of each Subscriber showing address, date of birth and signature | • | Unexpired government issued photo ID of the IRA owner showing address, date of birth and signature |
| Signed/Dated Personal W-9 | Signed/Dated Personal W-8 | • | Signed/Dated Personal W-9 |
|  |  | • | Signed/Dated Custodian W-9 |
|  |  | • | Certificate of the Trustee/Custodian certifying that the signatory to the subscription documentation is duly authorized |

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**Entities**<br>

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| | | |
|:---|:---|:---|
| **Corporation** | • | Articles of incorporation, certificate of good standing or government issued business license. (For a corporation formed outside of the United States, as an alternative to the foregoing, the corporation may provide any of: a corporate resolution, bank reference or three years of financial statements.) |
|  | • | For a corporation with at least one beneficial owner that owns more than 10% of such entity, each such beneficial owner must provide the following: name, permanent address, tax identification number and, in the case of a natural person, the applicable information required in the matrix "Natural Persons" above. If such beneficial owner is an entity, the foregoing information must be provided with respect to each beneficial owner that owns more than 10% of such entity. |
|  | • | Any official document issued by an authorized government body that includes the name of the entity and either the principal office address in the country in which the corporation claims to be resident or in which the corporation was incorporated. |
|  | • | Unexpired government issued photo ID of each person signing the subscription documents. |
|  | • | Signed/Dated relevant IRS Form. |

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| | | |
|:---|:---|:---|
| **Partnership** | • | Partnership agreement identifying the general partner(s) and/or authorized persons empowered to sign the subscription documents. |
|  | • | Certificate of good standing or government issued business license. (For a partnership formed outside of the United States as an alternative to the foregoing, the entity may provide either a bank reference or three years of financial statements.) |
|  | • | For a partnership with at least one beneficial owner that owns more than 10% of such partnership, each such beneficial owner must provide the following: name, permanent address, tax identification number and, in the case of a natural person, the information required in the matrix "Natural Persons" above. If such beneficial owner is an entity, the foregoing information must be provided with respect to each beneficial owner that owns more than 10% of such entity. |
|  | • | Any official document issued by an authorized government body that includes the name of the partnership and either the principal office address in the country in which the partnership claims to be resident or in which the partnership was formed. |
|  | • | Unexpired government issued photo ID of each person signing the subscription documents. |
|  | • | Signed/Dated relevant IRS Form. |
| **Limited Liability Company** | • | Limited liability company certificate of formation, limited liability company agreement, certificate of good standing or government issued business license. (For a limited liability company formed outside of the United States, as an alternative to the foregoing, the entity may provide either a bank reference or three years of financial statements.) |
|  | • | For a limited liability company with at least one beneficial owner that owns more than 10% of such company, each such beneficial owner must provide the following: name, permanent address, tax identification number and, in the case of a natural person, the information required in the matrix "Natural Persons" above. If such beneficial owner is an entity, the foregoing information must be provided with respect to each beneficial owner that owns more than 10% of such entity. |
|  | • | Any official document issued by an authorized government body that includes the name of the limited liability company and either the principal office address in the country in which the limited liability company claims to be resident or in which the limited liability company was formed. |
|  | • | Unexpired government issued photo ID of each person signing the subscription documents. |
|  | • | Signed/Dated relevant IRS Form. |
| **Trust** | • | Trust deed or agreement or relevant portions thereof showing appointment and authority of trustee(s) signing the subscription documents. |
|  | • | Provide an unexpired government issued photo ID of each person signing the subscription documents. |
|  | • | Signed/Dated relevant IRS Form. |

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| | | |
|:---|:---|:---|
| **Employee Benefit Plan** | • | Certificate of the trustee or an appropriate officer certifying that the subscription has been authorized and identifying the individual empowered to sign the basic subscription documents. |
|  | • | Provide an unexpired government issued photo ID of each person signing the subscription documents. |
|  | • | Signed/Dated relevant IRS Form. |

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#### Delivery Instructions
Completed and executed subscription documents should be delivered to Star Mountain Fund Management, LLC via email to investors@starmountaincapital.com.

The sender of such email represents that it is authorized to send such documents by the person required to execute such documents.

All basic subscription documents, evidence of authorization and additional anti-money laundering disclosure documents will be returned to the Subscriber if this subscription is not accepted.

#### Payments of Capital Calls

Capital calls will be made pursuant to the terms set forth in the Private Placement Memorandum, as may be amended or supplemented from time to time (the "Memorandum"). Capital contributions are due within eight business days after delivery of a capital call notice or as may otherwise be set forth in the Memorandum. Payments for the amount called must be made by wire transfer to an account that will be designated by the Company, which information shall be provided at the time of payment.

#### Acceptance of Subscriptions

The acceptance of subscriptions is within the absolute discretion of the Company, which may require additional information prior to making a determination. The Company will seek to notify the Subscriber of its acceptance or rejection of the subscription prior to the date of subscription. If the subscription is rejected, the Company will promptly refund (without interest) to the Subscriber any subscription payments received by the Company. The Company shall not be liable to the Subscriber for any rejection of its subscription.

#### Certain Regulatory Disclosures – European Union Investors
To fulfill certain regulatory requirements under the European Union General Data Protection Regulation (2016/679), prospective investors in the European Union should review the disclosure set forth in Appendix E hereto.

#### Additional Subscriptions
If you are an existing Subscriber and wish to subscribe for additional shares of common stock, please complete the Additional Subscription Form on page SA-18.

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#### Additional Information

Questions regarding the Subscription Agreement should be directed to:

Star Mountain Fund Management, LLC

140 East 45th Street<br>

New York, NY 10017<br>

Phone: 646-787-0203<br>

Fax: 1-800-804-4278

Email: Investors@StarMountainCapital.com

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#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Privacy Policy

This Privacy Notice is provided to you as a result of certain federal privacy notice and disclosure regulations and explains the manner in which the Company collects, utilizes and maintains nonpublic personal information about each of the investors in the Company. This Privacy Notice applies only to investors in the Company who are individuals or to certain entities that are essentially "alter egos" of individuals (*e.g.*, grantor trusts, IRAs and similar individual self-directed estate planning or investment vehicles).

We respect your right to privacy and are committed to maintaining and safeguarding nonpublic information about you. We do not disclose your personal information to companies or organizations not affiliated with us that would use the information we have provided them to contact you about their own products or services. However, to manage the Company in a professional and efficient manner, we must from time to time obtain and disclose certain nonpublic personal information about you. To protect the confidentiality of such information while making the necessary disclosures, we have developed the security policies described below.

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

(i) Information we receive from you through subscription agreements, investor questionnaires and other documents, such as your name, address, social security number, assets, income, employment and amounts or types of your investments;

<br> (ii) Information about your transactions with us, our affiliates and others, such as your Capital Account balance, other account data and participation in other investments;

<br> (iii) Information from outside sources, including consumer reporting agencies which may include credit reports; and

<br> (iv) Information we keep about the investments you purchase from us, as well as account balances and payment history.

#### Information We Disclose
We will only disclose nonpublic personal information to our affiliates and service providers as permitted by applicable law. In general, we may share your nonpublic personal information with our affiliates (including those who are involved in the operation, service, administration or management of, or the sale of Interests in, the Company). For example, we may share nonpublic personal information we collect as described above in connection with the administration and operations of the Company (including disclosure to attorneys, accountants, service providers, auditors or administrators). We do not share your nonpublic personal information with companies or organizations not affiliated with us that would use the information we have provided them to contact you about their own products or services.

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#### Our Security Procedures
Any service provider receiving your personal information will be authorized to use such information only to perform the services required of them by the Company and its affiliates, and then only as permitted by applicable law. When we share personal information with companies working on our behalf, we protect your personal information where required by law with confidentiality agreements which obligate companies to keep your information confidential. We restrict access to non-public personal information to those employees of the Company or its affiliates who require access to provide services to the Company and its affiliates and its investors. We maintain physical, electronic and procedural safeguards that comply with federal regulations to guard your non-public personal information. Your right to privacy extends to all forms of contact with us, including telephone, written correspondence and electronic media.

We are committed to safeguarding the nonpublic personal information of our investors and will adhere to the foregoing policies for both our current and former investors.

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#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Subscriber Information Form

References to "Shares" in this Subscriber Information Form shall refer to either (1) Class S Shares of Common Stock of the Company, par value $0.001 per share, (2) Class D Shares of Common Stock of the Company, par value $0.001 per share, (3) Class I Shares of Common Stock of the Company, par value $0.001 per share, or (4) Class SP Shares of Common Stock of the Company, par value $0.001 per share. Each Subscriber for Shares in Star Mountain Lower Middle-Market Capital Corp. (the "**Company**") is requested to furnish the following information (please print or type):

#### All Subscribers must complete this section:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Identity of Subscriber** 

Name:<br>

Permanent Address:   <br>   <br>  

Please check **all** of the boxes that describe the beneficial owner(s) for whose account the Shares are being acquired.

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| | | | |
|:---|:---|:---|:---|
| ☐ | Individual | ☐ | Broker-dealer |
| ☐ | Joint (spouses) | ☐ | Insurance company |
| ☐ | Joint (other) | ☐ | Registered investment company |
| ☐ | Personal trust (taxable to grantor) | ☐ | Tax-exempt endowment |
| ☐ | Personal trust (other) | ☐ | Other tax-exempt organization |
| ☐ | Individual retirement account | ☐ | Employee benefit plan (self-directed) |
| ☐ | Charitable trust | ☐ | Employee benefit plan (trustee directed) |
| ☐ | Private tax-exempt foundation | ☐ | Fund of Funds |
| ☐ | Other private fund | ☐ | Banking or thrift institution |
| ☐ | Family partnership or LLC | ☐ | Sovereign wealth fund or foreign office institution |
| ☐ | Business entity (other) | ☐ | Other |

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If "Other" or "Business entity (other)" was checked, please describe the entity or beneficial&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

owner: <u><br> </u> <br>    

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Contact Information** 

#### Primary Contact

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| |
|:---|
| Name: |
| Company Name: |
| Mailing Address: |
| Telephone: |
| Fax: |
| E-mail: |

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Please select one of the following reporting options for this Primary Contact:

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| | | |
|:---|:---|:---|
| ☐ | **Standard Reporting** | Includes Capital Statements, Investor Letters, Call/Distribution Notices, Tax Reporting, Audited Financial Statements, Subscription Confirmation and Legal Documents (as applicable) |
| ☐ | **Tax/Financials Reporting** | Includes Tax Reporting and Audited Financial Statements |
| ☐ | **Legal Reporting** | Includes Subscription Confirmation and Legal Documents |

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#### Secondary Contact (optional)

---

| |
|:---|
| Name: |
| Company Name: |
| Mailing Address: |
| Telephone: |
| Fax: |
| E-mail: |

---

Please select one of the following reporting options for this Secondary Contact:

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| | | |
|:---|:---|:---|
| ☐ | **Standard Reporting** | Includes Capital Statements, Investor Letters, Call/Distribution Notices, Tax Reporting, Audited Financial Statements, Subscription Confirmation and Legal Documents (as applicable) |
| ☐ | **Tax/Financials Reporting** | Includes Tax Reporting and Audited Financial Statements |
| ☐ | **Legal Reporting** | Includes Subscription Confirmation and Legal Documents |

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#### Additional Contact (optional)

---

| |
|:---|
| Name: |
| Company Name: |
| Mailing Address: |
| Telephone: |
| Fax: |
| E-mail: |

---

Please select one of the following reporting options for this Additional Contact:

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| | | |
|:---|:---|:---|
| ☐ | **Standard Reporting** | Includes Capital Statements, Investor Letters, Call/Distribution Notices, Tax Reporting, Audited Financial Statements, Subscription Confirmation and Legal Documents (as applicable) |
| ☐ | **Tax/Financials Reporting** | Includes Tax Reporting and Audited Financial Statements |
| ☐ | **Legal Reporting** | Includes Subscription Confirmation and Legal Documents |

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**<u>Authorized Persons</u>**

<br> Please set forth below the names of persons authorized by the Subscriber to give and receive instructions between the Company and the Subscriber together with their respective signatures. Such persons are the only persons so authorized until further written notice to the Company, signed by one or more of such persons.

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| | |
|:---|:---|
| <u>Name</u> | <u>Signature</u> |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Consent to Receive Electronic Delivery of Reports and Other Communications** 

By submitting this subscription document the Subscriber hereby affirmatively agrees and consents to have the Company and/or the Advisor deliver or make available electronically all current and future account statements, the Memorandum (including all supplements and amendments thereto), any prospectuses, Form ADV Parts 2A and 2B, notices (including privacy notices), letters to investors, all audited and unaudited financial statements, including the annual audited financial statements, regulatory communications and other information, documents, data and records related to the Subscriber's investment in the Company (collectively, "Account Communications"). The Subscriber acknowledges and agrees that electronic communication from the Company and/or the Advisor will include, among other things, e-mail delivery, as well as the electronic provision of Account Communications pertaining to the Subscriber via the Company's or the Advisor's web site or a web portal maintained by the Advisor, if applicable. The Subscriber acknowledges and agrees that it is the Subscriber's affirmative obligation to notify the Advisor, in writing, of any changes to the Subscriber's e-mail address.

The Subscriber may revoke or restrict its consent to electronic delivery of Reports and Other Communications at any time by notifying the Advisor, in writing, of the Subscriber's intention to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Amount of Subscription** 

$_________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Source of Funds for this Investment** (please check the box that applies)

☐ Employment Compensation <br> ☐ Savings ☐ Investments

☐ Inheritance ☐ Other  

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Dividends/Dividend Reinvestment Program** 

As described more fully in the Memorandum, the Company has adopted an "opt out" dividend re-investment program ("DRP"), pursuant to which each stockholder of the Company ("Stockholders") will receive dividends in the form of additional shares of the class of Shares that the stockholder owns unless they "opt out" of the DRP, thereby electing to receive cash dividends. Stockholders who receive dividends and other distributions in the form of Shares generally are subject to the same U.S. federal tax consequences as investors who elect to receive their distributions in cash; however, since their cash dividends will be re-invested, those investors will not receive cash with which to pay any applicable taxes on re-invested dividends.

☐ Please check here if the Subscriber wishes to "opt out" of the Company's dividend re-investment program and receive cash dividends. If this box is not checked, a Stockholder may subsequently elect to receive dividends and other distributions in cash by notifying the Company in writing at least 20 business days prior to the distribution date fixed by the Board for such dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Remitting Bank or Financial Institution** 

Capital contributions are due on or before the date specified by the Company in a written notice furnished to investors at least eight business days prior to such specified due date or as may otherwise be set forth in the Memorandum. Payments for the amount called must be made by wire transfer of readily available funds to the account of the Company. Please identify the bank or other financial institution (the "Wiring Institution") from which the Subscriber's funds will be wired. **Note that any amounts paid to the Subscriber will be paid to the same account from which its subscription funds were originally remitted, unless the Company agrees otherwise.**

If the Wiring Institution is located in the U.S., please answer Question 6(a) below. If the Wiring Institution is located outside of the U.S., please answer Question 6(b) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **U.S. Wiring Institutions**

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| |
|:---|
| Beneficiary Bank Name: |
| Beneficiary Bank ABA: |
| Beneficiary Bank Address: |
| Account Name: |
| Account Number: |
| For Further Credit Account<br> Name (if applicable): |
| For Further Credit Account<br> Number (if applicable): |
| For Further Credit Account<br> Number (if applicable): |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; **Non-U.S. Wiring Institutions**

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| |
|:---|
| Correspondent/Intermediary |
| Bank Name: |
| Correspondent/Intermediary |
| Bank ABA and/or SWIFT Code: |
| Beneficiary Bank Name: |
| Beneficiary Bank SWIFT Code: |
| Beneficiary Bank Address: |
| Beneficiary Bank Account Name: |
| Beneficiary Bank Account Number |
| <u>OR</u> IBAN Number: |
| For Further Credit Account |
| Name (if applicable): |
| For Further Credit Account |
| Number (if applicable): |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Is the Wiring Institution located in the U.S. or another "**AMLSG List Country**"<sup>2</sup>?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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If the answer is "Yes," please answer Question 6(d) below.

If the answer is "No," please contact the Company for additional information that may be required, which may include documentation verifying the identity of the Subscriber and/or the beneficial owner of the Shares, certification relating to anti-money laundering policies and procedures and a bank reference letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Is the Subscriber a customer of the Wiring Institution?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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If the answer is "No," please contact the Company for additional information that may be required, which may include documentation verifying the identity of the Subscriber and/or the beneficial owner of the Shares, certification relating to anti-money laundering policies and procedures and a bank reference letter.

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<sup>2</sup> If the Wiring Institution is not located in an AMLSG List Country, the Company may require additional information. For such list, see: https://www.cima.ky/list-of-equivalent-jurisdictions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Information Regarding Actual Ownership of the Shares** 

<br> (a) Is the Subscriber subscribing for Shares with the intent to sell, distribute or transfer the Shares to any other person or persons?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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Note: Subscribers are generally required to subscribe for Shares with an intent to beneficially hold such Shares. If the above question is answered "Yes," the Company may require additional information regarding the intended transferee of the Shares.

<br> (b) Will any other person or persons have a beneficial interest in the Shares acquired (other than as a shareholder, partner or other beneficial owner of equity interests in the Subscriber), including as a result of an agent, custodian, nominee or trustee arrangement?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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Note: If the above question is answered "Yes," the Company may require additional information regarding the person or persons which have a beneficial interest in the Shares.

(c) Do any of the following apply to the Subscriber: (i) the Subscriber controls, or is controlled by or under common control with, the Company or Star Mountain, (ii) the Subscriber is an employee or officer of the Company or Star Mountain, (iii) the Subscriber is a member of the immediate family of any of the foregoing or (iv) the Subscriber is a trust or other entity established for the benefit of any of the foregoing?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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Note: If any of the above questions were answered "Yes," please provide identifying information or contact the Company:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Taxable Year-End** 

Please provide the Subscriber's taxable year-end: <u><br> </u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Government Entities** 

Is the Subscriber a government entity or an officer, agent or employee thereof acting in his or her official capacity?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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Note: For purposes of this question only, government entities include all state and local governments, their agencies and instrumentalities, and any investment programs, defined benefit plans as defined in Section 414(j) of the U.S. Internal Revenue Code of 1986, as amended (the "**Code**"), state general funds, pools of assets or plans sponsored or established by state and local governments, including all public pension plans and any participant-directed plan or program of a government entity, such as ''qualified tuition plans'' authorized by Section 529 of the Code, and retirement plans authorized by Section 403(b) or 457 of the Code.

If the answer is "Yes," is the Subscriber aware of any political contributions it or any of its employees has received from the Company, the Company's employees, Star Mountain or any of Star Mountain's employees?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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If the answer is "Yes," please provide the date of the contribution:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Purchase of Shares Using Financing** 

Is the Subscriber subscribing for Shares using the financing of a third party, such as the proceeds of a loan?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Common Beneficial Ownership with other Investors** 

Does the Subscriber have any Affiliated Investors<sup>3</sup> in the Company?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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Has the Subscriber agreed to act together with any other person for the purpose of acquiring, holding, voting or disposing of the Shares?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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If either of the above questions was answered "Yes," identify the Affiliated Investor or the investor with which it has agreed to act together:

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<sup>3</sup> For purposes of question 10: "**Affiliated Investor**" means any investor who would be deemed to be a Controlling Person with respect to the Shares held by the Subscriber or who would have an indirect Controlling Person in common. A "**Controlling Person**" with respect to a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares, or is deemed to have or share, (i) voting power, which includes the power to vote, or to direct the voting of, such security; and/or (ii) investment power which includes the power to dispose, or to direct the disposition of, such security and any person that has the right to become a Controlling Person as described in (i) or (ii) within 60 days, including through the exercise of an option, the termination of a contract or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Subscriber Qualification** 

Subscriptions will be accepted only from persons who qualify as eligible investors within the meaning of applicable U.S. federal and state securities regulations. Unless otherwise indicated, responses should be given by reference to the specific person for whose account the Shares are being acquired.

#### "Accredited Investor" Status

Each Subscriber must indicate whether it, he or she qualifies as an "accredited investor" pursuant to **at least one** of the following tests. (Please check **all** that apply, or, if none applies, consult the Company.)

#### For Natural Persons:

☐ The Subscriber is a **natural person** whose individual net worth, or joint net worth with that person's spouse, at the time of purchase exceeds $1,000,000, **excluding** the value of the Subscriber's primary residence.<sup>4</sup>

☐ The Subscriber is a **natural person** with individual income (without including any income of the Subscriber's spouse) in excess of $200,000 or joint income with spouse of $300,000, in each of the two most recent years and who reasonably expects to reach the same level of income in the current year.

#### For Entities:

☐ The Subscriber is an **entity** with total assets in excess of $5,000,000 that was not formed for the purpose of investing in the Company and is one of the following:

☐ a corporation;

☐ a partnership;

<br> ☐ a limited liability company;

☐ a business trust; or

<br> ☐ a tax-exempt organization described in Section 501(c)(3) of the Code.

☐ The Subscriber is a personal (non-business) trust, other than an employee benefit trust, with total assets in excess of $5,000,000 that was not formed for the purpose of investing in the Company and whose decision to invest in the Company has been directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the investment.

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<sup>4</sup> An individual need not deduct from his or her net worth the amount of mortgage debt secured by an excluded primary residence other than (i) the amount by which the mortgage liability exceeds the fair value of the residence and (ii) any increase in the amount of the debt secured by the primary residence in the 60 days preceding the date hereof unless the increase was a result of the acquisition of the residence.

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☐ The Subscriber is an employee benefit plan within the meaning of Title I of the U.S. Employee Retirement Income Security Act of 1974, as amended ("**ERISA**") or an individual retirement account (an "**IRA**") which satisfies at least one of the following conditions:

☐ it has total assets in excess of $5,000,000;

<br> ☐ the investment decision is being made by a plan fiduciary that is a bank, savings and loan association, insurance company or registered investment adviser; or

☐ it is a self-directed plan (i.e., a tax-qualified defined contribution plan in which a participant may exercise control over the investment of assets credited to his or her account) and the decision to invest is made by those participants investing, and each such participant qualifies as an accredited investor.

☐ The Subscriber is an employee benefit plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, that has total assets in excess of $5,000,000.

☐ The Subscriber is licensed, or subject to supervision, by U.S. federal or state examining authorities such as a "bank", "savings and loan association", "insurance company", or "small business investment company" (as such terms are used and defined in 17 CFR §230.501(a)) or is an account for which a bank or savings and loan association is subscribing in a fiduciary capacity.

☐ The Subscriber is registered with the United States Securities and Exchange Commission as a broker or dealer or an investment company; or has elected to be treated or qualifies as a "business development company" (within the meaning of Section 2(a)(48) of the U.S. Investment Company Act of 1940, as amended (the "**Investment Company Act**"), or Section 202(a)(22) of the U.S. Investment Advisers Act of 1940, as amended (the "**Advisers Act**")).

<br> ☐ The Subscriber otherwise meets the definition of 'accredited investor' under Rule 501(a) of Regulation D promulgated under the Securities Act (as defined below).

☐ The Subscriber is an entity in which **all** of the equity owners are persons described above.

<br> ☐ None of the statements in this Question 12(a) ("Accredited Investor" Status) are applicable to the Subscriber.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Supplemental Data for Individuals** 

If the Subscriber is a natural person, furnish the following supplemental data (other investors may skip to Question 14):

<br> (a) Please indicate desired type of ownership interest.

☐ Individual ☐ Joint

<br> (b) State of Residence

Indicate the state, or if the Subscriber is not a United States citizen or permanent resident, the country where the Subscriber has his or her principal residence.

Note: If you are married and live in a community property state, both you and your spouse must sign the Signature Page of the Subscription Agreement. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Puerto Rico, Texas, Washington and Wisconsin.

<br> (c) Please indicate the Subscriber's date of birth:

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<br> (d) Tax Information for Individuals

<br> (i) Is the Subscriber a U.S. citizen, "green card" holder or otherwise a tax resident of the United States?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

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<br> (ii) Please provide the Subscriber's U.S. Taxpayer Identification Number (SSN, EIN or ITIN, as applicable):

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**Please make sure the Subscriber has completed and signed IRS Form(s) W-9 or the appropriate IRS Form(s) W-8, as applicable, in accordance with the instructions provided by the IRS. See Appendix C.**

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<br> (e) Joint Subscriptions (if you are subscribing with another person, please answer the following questions.):

Please indicate type of ownership interest:

☐ Joint Tenants (rights of survivorship)

☐ Tenants in common (no rights of survivorship)

If you are subscribing with another person, please answer the following questions:

<br> (i) Is the other person a U.S. citizen, "green card" holder or otherwise a tax resident of the United States?

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| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

<br> (ii) Please provide such other person's U.S. Taxpayer Identification Number (SSN, EIN or ITIN, as applicable):

------

**Please make sure such other person has completed and signed IRS Form(s) W-9 or the appropriate IRS Form(s) W-8, as applicable, in accordance with the instructions provided by the IRS.**See Appendix C.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Supplemental Data for Individual Retirement Account (IRA) Investors** 

<br> (a) Is the Subscriber an IRA as defined in Section 408(a) of the Code?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

<br> (b) If the Subscriber is subscribing as a trustee or custodian for an IRA, is the Subscriber a qualified IRA custodian or trustee?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

Note: If the above question is answered "No," the Company may require additional information regarding the Subscriber. <br>

<br> (c) Name of qualified IRA trustee or custodian:

------

<br> (d) U.S. Taxpayer Identification Number of qualified IRA trustee or custodian:

------

**** 

<br> **Please make sure the IRA trustee or custodian has completed and signed IRS Form(s) W-9 or the appropriate IRS Form(s) W-8, as applicable, in accordance with the instructions provided by the IRS.**See Appendix C.

<br> (e) Is the beneficial owner a U.S. citizen, "green card" holder or otherwise a tax resident of the United States?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

&nbsp;&nbsp;&nbsp;&nbsp;<br>

<br> (f)<br> Please provide the beneficial owner's U.S. Taxpayer Identification Number (SSN, EIN or ITIN, as applicable):

------

**Please make sure the beneficial owner has completed and signed IRS Form(s) W-9 or the appropriate IRS Form(s) W-8, as applicable, in accordance with the instructions provided by the IRS.**See Appendix C.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Supplemental Data for Entities and Trusts** 

<br> (a) Legal form of entity: <u><br> </u> <br>

<br> (b) Jurisdiction of organization: <u><br> </u> <br>

(c) Date of organization:

(d) Briefly identify the Subscriber's primary business:

(e) Is the Subscriber a limited partnership or limited liability company with at least one beneficial owner that owns more than 10% of the Subscriber?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

Note: If the answer is "Yes," each such beneficial owner must provide the Company with the following: name, permanent address, tax identification number and, in the case of a natural person, a copy of one of the following: unexpired passport, photo driver's license, other government issued photo ID or birth certificate. If such beneficial owner is an entity, the foregoing information must be provided with respect to each beneficial owner that owns more than 10% of such entity.

(f) **Controlling Person Status**

Is the Subscriber or will the Subscriber be a person (including an entity) that has discretionary authority or control with respect to the assets of the Company or a person who provides investment advice with respect to the assets of the Company or an "affiliate" of such a person? For purposes of this representation and agreement, an "affiliate" is any person controlling, controlled by or under common control with any such person, including by reason of having the power to exercise a controlling influence over the management or policies of such person?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

------

(g) **Investor Status (ALL ENTITIES MUST COMPLETE THIS SECTION)**

<sup>(1)</sup> Is the Subscriber, or will the Subscriber become, (i) an employee benefit plan subject to the fiduciary provisions of ERISA, (ii) a "plan" subject to Section 4975 of the Code (a party described in (i) or (ii), a "**Plan**"), (iii) an entity (e.g., a fund-of-funds) whose underlying assets include "plan assets" for purposes of ERISA by reason of a Plan's investment in the Subscriber (a "**Plan Assets Entity**"), or (iv) an entity that otherwise constitutes a "benefit plan investor" within the meaning of any U.S. Department of Labor regulation?<br>

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

#### If the answer to the above question is "No", please skip to question 15(g)(2).

i. Is the Subscriber an employee benefit plan or trust that is subject to the fiduciary provisions of ERISA (this includes U.S. pension plans and U.S. profit-sharing and 401(k) plans, "Multiemployer Plans" and "Taft-Hartley Plans" but does not include U.S. governmental plans, certain church plans and non-U.S. employee pension and welfare benefit plans)?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

<br> ii. Is the Subscriber an IRA, Keogh Plan or other "plan" subject to Section 4975 of the Code?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

iii. Is the Subscriber a Plan Assets Entity (including, without limitation, an insurance company investing the assets of its general account (or the assets of a wholly owned subsidiary of its general account), the underlying assets of which include "plan assets" for purposes of Section 401(c) of ERISA)?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If the answer to the above question is "Yes", please indicate the maximum percentage of the Subscriber's assets which may represent Plan assets:

------

iv. Have beneficiaries of the Plan been provided the opportunity to decide individually whether or not to participate, or the extent of their participation, in the Plan's investment in the Company (i.e., have beneficiaries of the Plan been permitted to determine whether their capital will form part of the specific capital invested by the Plan in the Company)?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

Note: If the above question is answered "Yes," the Company may require additional information regarding the qualifications of each plan participant.

------

<sup>(2)</sup> Is the Subscriber a "governmental plan" within the meaning of Section 3(32) of ERISA or other "employee benefit plan" within the meaning of Section 3(3) that is subject to any laws or regulations that are similar to the fiduciary provisions of ERISA or Section 4975 of the Code?<br>

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If the answer to the preceding question is "Yes," is the Subscriber in compliance with all rules and regulations that constitute the body of law by which it is governed?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

Note: If the above question is answered "No," the Company may require additional information regarding the Subscriber's compliance with applicable rules and regulations.

(h) **Regulated Institutions (ALL ENTITIES MUST COMPLETE THIS SECTION)**

Is the Subscriber a regulated institution that is subject to legal or regulatory restrictions or limitations on the nature of its investments (such as a bank or an insurance company)?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If the answer to the preceding question is "Yes", has the Subscriber verified that the proposed subscription is in compliance with applicable laws and regulations?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

Note: If the above question is answered "No," the Company may require additional information regarding the Subscriber's compliance with applicable laws and regulations.

------

(i) **Tax Information (ALL ENTITIES MUST COMPLETE THIS SECTION)**

<br> (1) Please provide the Subscriber's/beneficial owner's U.S. Taxpayer Identification Number (SSN, EIN or ITIN, as applicable):

------

**Please make sure the Subscriber/beneficial owner has (or, with respect to an IRA, the IRA trustee or custodian has) completed and signed IRS Form(s) W-9 or the appropriate IRS Form(s) W-8, as applicable, in accordance with the instructions provided by the IRS.**See Appendix C.

<br> (2) Is the Subscriber exempt from U.S. federal income tax (e.g., a qualified employee benefit plan or trust, retirement account, charitable remainder trust, or a charitable foundation or other tax-exempt organization described in Section 501(c)(3) of the Code)?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If the answer above is "Yes," is the Subscriber subject to taxation on "unrelated business taxable income" under Sections 511-514 of the Code?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **General Data Protection Regulation (for European Union natural person investors only)** 

Personal information is subject to certain legal safeguards specified in the EU General Data Protection Regulation (2016/679) ("**GDPR**") and any national laws implementing the GDPR and the Directive on Privacy and Electronic Communications (2002/58/EC). In connection therewith, the Subscriber should review Appendix E attached hereto.

☐ Check this box only if the Subscriber does not consent to the Company and/or Advisor using the Subscriber's information in order to provide the Subscriber with information regarding investments or products sponsored by the Advisor or its affiliates in which the Subscriber may be interested, as described in Appendix E. This includes ordinary course references to products sponsored by the Advisor in Company reports and letters.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.** **"Bad Actor" Disqualification Event Questionnaire** 

The purpose of the questionnaire below is to obtain information from the Subscriber in connection with the offering of the Shares under Rule 506 of the Securities Act regarding certain convictions, orders, bars or expulsions that could either prevent the Company's use of Rule 506 or require disclosure to potential investors. The Subscriber acknowledges that the SEC may require the Company to disclose the information provided in this questionnaire to potential investors and consents to such disclosure.

#### Please answer every question.
If the Subscriber's answer is "Yes," please provide details in the explanation. Unless otherwise stated, answers should be given as of the date the Subscriber signs the Subscription Agreement. Certain questions are necessarily broad in scope, so if the Subscriber has doubts regarding whether something should be included in its response, please err on the side of over-inclusion. The questionnaire below provides a space after each question for an explanation. Please include a summary of all material facts in the provided space, including but not limited to, as appropriate, (i) the date of the order, conviction, bar, suspension, expulsion or injunction, (ii) the nature of the offense or conviction (including whether it is a felony or misdemeanor), (iii) the sentence received, (iv) the court or authority issuing the order or judgment or imposing the bar or suspension and (v) the dates for which the bar, suspension or expulsion is or will be in effect. If any response does not fit in the allotted space, please continue the explanation in the "Continuation Page" attached as <u>Appendix H</u> of this document. The Company may have additional follow-up questions for the Subscriber in connection with its responses. Note that certain terms used in the questionnaire below, which first appear bolded and in italics, have technical meanings and are defined immediately below.

"***affiliated***" means a person or entity that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, another person or entity.

"***Affiliated Investor***" means any investor in the Company who would be deemed to be a Controlling Person with respect to the Shares held by the Subscriber or would have an indirect Controlling Person in common. A "***Controlling Person***" with respect to a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares, or is deemed to have or share, (i) voting power, which includes the power to vote, or to direct the voting of, such security; and/or (ii) investment power which includes the power to dispose, or to direct the disposition of, such security and any person that has the right to become a Controlling Person as described in (i) or (ii) within 60 days, including through the exercise of an option, the termination of a contract or otherwise.

"***final order***" means a written directive or declaratory statement issued by a federal or state agency described in Rule 506(d)(1)(iii) under the Securities Act under applicable statutory authority that provides for notice and an opportunity for a hearing, which constitutes a final disposition or action by that federal or state agency. An order may still be subject to appeal and still be deemed to constitute a "final order."

"***participating in the offering***" can encompass, but is not limited to, activities such as participation or involvement in due diligence activities related to the offering, involvement in the preparation of disclosure documents, and communications with the issuer, prospective investors or other offering participants. Whether activities are considered participating in the offering is a question of fact.

------

&nbsp;&nbsp;&nbsp;&nbsp;(a) Has the Subscriber or its Controlling Person been convicted, within the past ten years (or five years, in the case of the Company's affiliated issuers), of any felony or misdemeanor:

<br> • in connection with the purchase or sale of any security;

<br> • involving the making of any false filing with the SEC; or

<br> • arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment advisor or paid solicitor of purchasers of securities?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

&nbsp;&nbsp;&nbsp;&nbsp;(b) Is the Subscriber or its Controlling Person subject to any order, judgment or decree of any court of competent jurisdiction, entered within the past five years, that currently restrains or enjoins it from engaging or continuing to
 engage in any conduct or practice:

<br> • in connection with the purchase or sale of any security;

<br> • involving the making of any false filing with the SEC; or

<br> • arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

&nbsp;&nbsp;&nbsp;&nbsp;(c) Is the Subscriber or its Controlling Person subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings
 associations, or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading Commission; or the National Credit
 Union Administration that:

<br> • currently bars it from:

<br> o association with an entity regulated by such commission, authority, agency or officer;

<br> o engaging in the business of securities, insurance or banking; or

<br> o engaging in savings association or credit union activities; or

<br> • constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct entered within the past ten years?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

------

&nbsp;&nbsp;&nbsp;&nbsp;(d) Is the Subscriber or its Controlling Person subject to an order of the SEC entered pursuant to Section 15(b) or 15B(c) of the Exchange Act or Section 203(e) or 203(f) of the Advisers Act that currently:

<br> • suspends or revokes its registration as a broker, dealer, municipal securities dealer or investment adviser;

<br> • places limitations on the activities, functions or operations of, or imposes civil money penalties on, such person; or

<br> • bars it from being associated with any entity or from participating in the offering of any penny stock?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

&nbsp;&nbsp;&nbsp;&nbsp;(e) Is the Subscriber or its Controlling Person subject to any order of the SEC, entered within the past five years, that, currently orders it to cease and desist from committing or causing a violation or future violation of:

• any scienter-based anti-fraud provision of the federal securities laws, including, without limitation, Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, Section 15(c)(1) of the Exchange Act and Section 206(1) of the Advisers Act or any other rule or regulation thereunder; or

<br> • Section 5 of the Securities Act.

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

&nbsp;&nbsp;&nbsp;&nbsp;(f) Is the Subscriber or its Controlling Person currently suspended or expelled from membership in, or suspended or barred from association with a member of, a securities self-regulatory organization (e.g., a registered national securities
 exchange or a registered national or affiliated securities association) for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

------

&nbsp;&nbsp;&nbsp;&nbsp;(g) Has the Subscriber or its Controlling Person filed (as a registrant or issuer), or was the Subscriber or its Controlling Person named as an underwriter in any registration statement or Regulation A offering statement filed with the SEC
 that, within the past five years, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is currently the subject of an investigation or proceeding to determine whether a stop order or
 suspension order should be issued?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

&nbsp;&nbsp;&nbsp;&nbsp;(h) Is the Subscriber or its Controlling Person subject to a United States Postal Service false representation order entered within the past five years, or is the Subscriber or its Controlling Person currently subject to a temporary
 restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

&nbsp;&nbsp;&nbsp;&nbsp;(i) Is the Subscriber or its Controlling Person the subject of any ongoing proceeding, arbitration, action, indictment or charge that if resolved against it or such person could result in a "Yes" answer to any of the above questions?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

&nbsp;&nbsp;&nbsp;&nbsp;(j) If the Subscriber responded "Yes" to any of the questions above, has the Subscriber or its Controlling Person obtained a waiver from disqualification under Rule 506(d) either (i) from the SEC or (ii) from the court or regulatory
 authority that entered the relevant order, judgment or decree?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please explain. In the explanation, please include (i) the party which granted such waiver and (ii) the date such waiver was granted:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

------

&nbsp;&nbsp;&nbsp;&nbsp;(k) Has the Subscriber or its Controlling Person agreed with any other person to act together for the purpose of acquiring, holding, voting or disposing of the Shares?

---

| | | | |
|:---|:---|:---|:---|
| ☐ | Yes | ☐ | No |

---

If "Yes," please describe:

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u>

&nbsp;&nbsp;&nbsp;&nbsp;(l) Please identify each Affiliated Investor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.** **Financial Advisor Information** 

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u> <br> <u><br> </u> <br> Financial advisor ID number <br> First name <br> Middle initial <br> Last name ☐ Mr. ☐ Mrs. ☐ Ms.

<u><br> </u> <br> <u><br> </u> <br> Firm name <br> Is Firm an RIA? ☐ Yes ☐ No (if unanswered, then NO)

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u> <br> Branch address <br> City <br> State

<u><br> </u> <br> <u> () </u> <br> <u><br> </u> <br> <u><br> </u> <br> Branch number <br> Phone number <br> Extension <br> Email address

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.** **Custodian Information** 

<u><br> </u> <br> <u> () </u> <br> Name of custodian or trustee <br> Custodian or trustee phone number

<u><br> </u> <br> <u><br> </u> <br> <u><br> </u> <br> <u><br> </u> <br> Mailing address <br> City <br> State <br> Zip

<u><br> </u> <br> <u><br> </u> <br> Custodian Tax ID Number <br> Custodian account number

------

#### Exhibit I

ELECTRONIC DELIVERY DISCLOSURE AND CONSENT

Star Mountain Fund Management, LLC ("**Star Mountain**") offers the Subscriber the convenience of electronic delivery of disclosure and other documents in connection with an investment in Star Mountain Lower Middle-Market Capital Corp. (the "**Company**"). Terms used but not otherwise defined herein shall have the meanings given to them in the Subscriber Information Form to which this Exhibit I is attached.

This electronic delivery disclosure and consent applies to all documents that Star Mountain or the Company may provide to the Subscriber electronically and describes how Star Mountain and the Company deliver communications electronically. Star Mountain and the Company may change this disclosure by posting the revised version on Star Mountain's website.

Some of the documents that Star Mountain or the Company may provide to the Subscriber electronically are (as applicable):

<br> • Private Placement Memorandum and any supplements or amendments thereto

<br> • Prospectuses

<br> • Form ADV Parts 2A and 2B

<br> • Capital call notices

<br> • Distribution notices

<br> • Privacy Notices

<br> • Capital account statements

<br> • Periodic notices, consents, waivers or demands as provided in the Memorandum

<br> • Privacy policy

<br> • Audited and unaudited financial statements of the Company

<br> • Regulatory communications and other information

<br> • Tax reporting

<br> • Investor letters

#### Electronic delivery of documents

Pursuant to Item 3 of the Subscriber Information Form to which this Exhibit I is attached, the Subscriber hereby affirmatively agrees and consents to have the Company and/or the Advisor deliver or make available electronically all current and future account statements, the Memorandum (including all supplements and amendments thereto), any prospectuses, Form ADV Parts 2A and 2B, notices (including privacy notices), letters to investors, all audited and unaudited financial statements, including the annual audited financial statements, regulatory communications and other information, documents, data and records related to the Subscriber's investment in the Company (collectively, "Account Communications"). The Subscriber acknowledges and agrees that electronic communication from the Company and/or the Advisor will include, among other things, e-mail delivery, as well as the electronic provision of Account Communications pertaining to the Subscriber via the Company's or the Advisor's web site, if applicable. The Subscriber acknowledges and agrees that it is the Subscriber's affirmative obligation to notify the Advisor, in writing, of any changes to the Subscriber's e-mail address.

Exhibit I-1

------

The Subscriber may revoke or restrict its consent to electronic delivery of Reports and Other Communications at any time by notifying the Advisor, in writing, of the Subscriber's intention to do so.

#### Hardware and Software requirements

In order to access and retain electronic documents, the Subscriber will need the following computer hardware and software:

<br> • a computer with an Internet connection;

<br> • a current web browser that supports the Secure Sockets Layer (SSL) protocol (e.g., Microsoft Internet Explorer® version 7 or higher and Mozilla Firefox® version 3);

<br> • Adobe Acrobat Reader version 8.0 and above to open documents in .pdf format;

<br> • a valid email address (the Subscriber's primary email address as provided in the Subscriber Information Form to which this Exhibit I is attached); and

<br> • sufficient storage space to save the information.

By giving consent, the Subscriber is confirming that it has access to the necessary equipment and is able to receive, open and print or download copies of any documents for its records. The Subscriber may print or save a copy of these documents for its records as they may not be accessible online at a later date.

#### Withdrawing consent; Requesting paper copies; Updating information

The Subscriber can request that Star Mountain and the Company send the Subscriber a paper copy of any document that was originally provided electronically, withdraw its consent to receive future documents electronically, or provide Star Mountain and the Company with updated information about how it can contact the Subscriber electronically by writing to Star Mountain.

Exhibit I-2

------

The Subscriber can write to the Company at:

Star Mountain Lower Middle-Market Capital Corp.

c/o Star Mountain Fund Management, LLC

140 East 45th Street

New York, NY 10017

The Subscriber can revoke or restrict its consent to electronic delivery, but doing so will not affect the legal effectiveness, validity, or enforceability of the electronic documents that were provided to the Subscriber before its withdrawal became effective. If the Subscriber withdraws consent for electronic delivery, Star Mountain will provide documents to the Subscriber via mail and/or facsimile. The Subscriber's withdrawal of consent may be effective either immediately or a reasonable amount of time thereafter as specified in the Subscriber's consent withdrawal notice.

Exhibit I-3

------

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### Subscription Agreement

Star Mountain Fund Management, LLC

140 East 45th Street

New York, NY 10017

Ladies and Gentlemen:

The undersigned (the "**Subscriber**") hereby acknowledges having received and read the current Private Placement Memorandum, as may be amended or supplemented from time to time (the "**Memorandum**") of Star Mountain Lower Middle-Market Capital Corp., a Delaware corporation (the "**Company**"). The Company will invest all proceeds of the shares of common stock issued by the Company in accordance with the Memorandum. Prior to or simultaneously with delivery of this Subscription Agreement to Star Mountain Fund Management, LLC, the investment advisor of the Company (the "**Advisor**") has made the Memorandum and Form ADV Part 2A and Part 2B available to the Subscriber. Terms used but not otherwise defined herein shall have the meanings given to them in Appendix B hereto.

#### Subscription Commitment
The Subscriber hereby subscribes for shares of common stock of the Company ("**Shares**") of the class specified on the accompanying signature page, having a capital commitment in the amount set forth in the accompanying signature page, which must be completed and signed by the Subscriber or a duly authorized officer or agent of the Subscriber, which shall be considered an integral part of this Subscription Agreement. The Subscriber shall make capital contributions, in cash, in installments as called from time to time by the Company, up to an amount constituting the Subscriber's "**Unfunded Capital Commitment**," determined in accordance with the Memorandum and the Subscriber Information Form accompanying this Subscription Agreement.

The Subscriber understands that this subscription is not binding on the Company until accepted by the Company, and may be rejected, or accepted in part and rejected in part, by the Company in its absolute discretion.

If this application for subscription is accepted, written confirmation of the Company's acceptance of the Subscriber's subscription will be sent to the Subscriber by the Company's administrator or sub-administrator as soon as practicable after the date on which the Subscriber is issued shares of the Company. Such written confirmation shall constitute the acceptance and agreement of the Company to this Subscription Agreement. For the avoidance of doubt, the Subscriber acknowledges that it may not receive a countersigned Subscription Agreement.

If so rejected, the Company shall return to the Subscriber, without interest or deduction, any payment tendered by the Subscriber, and the Company and the Subscriber shall have no further obligation to each other hereunder. The Company shall be held harmless for any rejection of the Subscriber's subscription. Unless and until rejected by the Company, this subscription shall be irrevocable by the Subscriber.

------

To the extent that the Company has outstanding obligations under a credit facility, the Subscriber agrees in favor of the Company and any subscription lender that it shall be unconditionally obligated to fund, in accordance with this Subscription Agreement, any portion of its Unfunded Capital Commitment that will be used for the repayment of borrowings under the credit facility without defense, counterclaim, reduction or offset of any kind, including any suretyship defense and any defense arising under Section 365(c) of the United States Bankruptcy Code, if applicable (and each of such defenses is hereby waived by the Subscriber); provided that such agreement to fund shall not act as a waiver by the Subscriber of its right to assert independently any claim that the Subscriber may have against any other Subscriber or the Company.

#### Representations, Warranties and Covenants – all Investors
To induce the Company to accept this subscription, the Subscriber hereby makes the following representations, warranties and covenants to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber represents that it is an "accredited investor," as such term is defined in Rule 501(a) of the U.S. Securities Act of 1933, as amended (the "**Securities Act**"), and satisfies the suitability standards, as described in the Memorandum, for the particular class of shares for which the Subscriber is subscribing. The information set forth in the accompanying Subscriber Information Form (including, without limitation, any IRS Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and/or W-8IMY and/or W-9, or any successor forms) is accurate and complete as of the date hereof, and the Subscriber agrees to notify the Company immediately if any representation or warranty contained in this Subscription Agreement, or any information provided pursuant to the Subscriber Information Form (including, without limitation, any IRS Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and/or W-8IMY and/or W-9, or any successor forms) becomes untrue, misleading, or otherwise requires updating at any time (including upon the expiration or obsolescence of such form). For so long as the Subscriber is a shareholder, the Subscriber further agrees to provide any revised or updated information necessary to cause the Subscriber Information Form to remain true and correct as soon as practicable upon the Subscriber becoming aware that any such change or revision is necessary. If the Subscriber's Shares constitute or will at any time in the future constitute more than 15 percent in interest of the Company's voting securities, the Subscriber agrees to complete a separate questionnaire regarding any convictions, judgments, suspensions, bars or orders relating to securities offerings, commodity futures business or certain other businesses. Such questionnaire and the information and representations otherwise provided under this Section shall form a part of this document and shall be subject to, among other things, the indemnification provisions and the duty to update information contained in this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as disclosed in the accompanying Subscriber Information Form, the Subscriber is acquiring the Shares for the Subscriber's own account, does not have any contract, undertaking or arrangement with any person or entity to sell, transfer or grant a participation with respect to any of the Shares, and is not acquiring the Shares with a view to or for sale in connection with any distribution of the Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber understands that the Shares have not been and may not be registered under the Securities Act or any state law and that, as a BDC, the Company is subject to only certain provisions of the Investment Company Act. The Subscriber agrees to notify the Company prior to any proposed sale, transfer, distribution or other disposition of the Shares or any beneficial interest therein, and will not sell, transfer, distribute or otherwise dispose of the Shares without the consent of the Company, which may be granted or withheld in the Company's sole discretion, and unless the Shares are registered or such sale, transfer, distribution or other disposition is exempt from registration. The Subscriber understands that any such transfers without the consent of the Company are void *ab initio*. The Subscriber understands that the Company is under no obligation to assist the Subscriber in obtaining or complying with any exemption from registration. The Company may require that a proposed transferee meet appropriate financial and other suitability standards and that the transferor furnish a legal opinion satisfactory to the Company and its counsel that the proposed transfer complies with applicable U.S. federal, state and any other applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber understands and agrees further that, except as specifically set forth in the Memorandum, its Shares must be held indefinitely unless such Shares are subsequently registered under the Securities Act, the securities laws of any state and the securities laws of any other applicable jurisdiction or an exemption from registration under the Securities Act and these laws covering the sale of such interests is available; that even if such an exemption is available, the assignability and transferability of its Shares will be governed by the Memorandum, which imposes substantial restrictions on transfer; that legends stating that its Shares have not been registered under the Securities Act and these laws and setting out or referring to the restrictions on the transferability and resale of the Shares will be placed on all documents evidencing such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp; In formulating a decision to invest in the Company, the Subscriber has not relied or acted on the basis of any representations or other information purported to be given on behalf of the Company or the Advisor except as set forth in the Memorandum (it being understood that no person has been authorized by the Company or the Advisor to furnish any such representations or other information).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To its full satisfaction, the Subscriber has been provided with any materials the Subscriber has requested relating to the Company, the offering of Shares or any statement made in the Memorandum, and the Subscriber has been afforded the opportunity to ask questions of representatives of the Company concerning the terms and conditions of the offering and to obtain any additional information necessary to verify the accuracy of any representations or information set forth in the Memorandum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber received a copy of and its authorized representative has read and understands Part 2A and Part 2B of Form ADV of the Advisor before executing this Subscription Agreement, which are available here. If you cannot click on this link, please type the following into your web browser: https://starmountaincapital.com/wp-content/uploads/2016/11/Star_Mountain_Form_ADV_1A_2A_2B_Combined.pdf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp; The Subscriber recognizes that there is not now any public market for Shares and that such a market may not develop; accordingly, it may not be possible for the Subscriber to readily liquidate the Subscriber's investment in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp; The Subscriber is not prohibited by any applicable law from holding Shares or any investment interest in the investments to be pursued by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp; If the Subscriber is a natural person, the Subscriber has the legal capacity to execute, deliver and perform this Subscription Agreement and the Memorandum.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp; If the Subscriber is a corporation, partnership, limited liability company, trust or other entity, it is authorized and qualified to become a shareholder of, and authorized to make its capital commitment to, the Company and otherwise to comply with its obligations under the Memorandum; the person signing this Subscription Agreement on behalf of such entity has been duly authorized by such entity to do so; and this Subscription Agreement has been duly executed and delivered on behalf of the Subscriber and is the valid and binding agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms. In addition, such Subscriber will, upon request of the Company, deliver any documents, including an opinion of counsel to the Subscriber, evidencing the existence of the Subscriber, the legality of an investment in the Company and the authority of the person executing this Subscription Agreement on behalf of the Subscriber which may be requested by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon the request of the Company, the Subscriber shall provide such information and execute such documents as may be required in connection with any loan to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber has carefully reviewed and understands the various risks of an investment in the Company, as well as the fees and conflicts of interest to which the Company is subject, as set forth in the Memorandum. The Subscriber hereby consents and agrees to the payment of the fees so described to the parties identified as the recipients thereof, and to such conflicts of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber believes that the compensation terms of the Memorandum represent an "arm's-length" arrangement and the Subscriber is satisfied that it has received adequate disclosure from the Company to enable it to understand and evaluate the compensation and other terms of the Memorandum and the risks associated therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Subscriber agrees to provide the Company and/or the administrator in a timely manner any additional tax information or documentation that the Company or the administrator believes is required or will enable it, the Company or any affiliate of the foregoing to comply with or mitigate any of their respective tax reporting, tax withholding, and/or tax compliance obligations, or which may arise as a result of a change in law or in the interpretation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber acknowledges and understands that if, as a result of any information or other matter which comes to its attention, any person resident in the Cayman Islands knows or suspects or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct or is involved with terrorism or terrorist property and the information for that knowledge or suspicion came to their attention in the course of business in the regulated sector, or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to (i) the Financial Reporting Authority of the Cayman Islands ("**FRA**") or a nominated officer (appointed in accordance with the Proceeds of Crime Law (Revised) of the Cayman Islands), if the disclosure relates to criminal conduct or money laundering, or (ii) the FRA or a police constable or a nominated officer, pursuant to the Terrorism Law (Revised), if the disclosure relates to involvement with terrorism or terrorist financing and terrorist property; and such a report shall not be treated as a breach of confidence or of any restriction upon the disclosure of information imposed by any enactment or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp; None of the Subscriber's subscription funds consist of Proceeds of Municipal Securities or Municipal Escrow Investments.

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#### Anti-Money Laundering and Related Representations, Warranties and Covenants – all Investors
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber represents and warrants that neither the Subscriber nor any holder of any beneficial interest in the Shares (each a "Beneficial Interest Holder")<sup>4</sup> and, in the case of a Subscriber or Beneficial Interest Holder which is an entity, no Related Person is:

<sup>(1)</sup> A person or entity whose name appears on (i) the List of Specially Designated Nationals and Blocked Persons, (ii) the List of Foreign Sanctions Evaders, or (iii) the Sectoral Sanctions Identification List, each maintained by the U.S. Department of Treasury's Office of Foreign Asset Control ("**OFAC**") or other list designated by the Company from time to time;<br>

<br> (2) A person or entity who appears on the sanctions lists adopted by the United Nations and the European Union to such extent such sanctions are extended by the U.K. government to its overseas territories;

<sup>(3)</sup> A person or entity who is a citizen or resident of, which is located in, which is organized or chartered under the laws of, or whose subscription funds are transferred from or through an account in, a jurisdiction which is the subject of an OFAC embargo (currently, the Crimea Region, Cuba, Iran, North Korea, Sudan, and Syria; hereinafter referred to as "**OFAC Embargoed Territories**") or has been identified by the Secretary of State as a state sponsor of terrorism;<br>

<br> (4) A person or entity with which the Company is prohibited to deal under the laws of the United States, including the sanctions laws administered by OFAC;

<br> (5) A Foreign Shell Bank;

<br> (6) A person or entity who is a citizen or resident of, or which is located in, or whose subscription funds are transferred from or through an account in a Non-Cooperative Jurisdiction;

<sup>(7)</sup> A person or entity who is citizen or resident of, located in, or organized or chartered under the laws of, a jurisdiction that has been designated by the U.S. Secretary of the Treasury under Section 311 or 312 of the USA PATRIOT Act as warranting special measures due to money laundering concerns;<sup>5</sup><br>

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<sup>5</sup> Beneficial Interest Holders will include, but not be limited to: (i) shareholders of a corporation; (ii) partners of a partnership; (iii) members of a limited liability company; (iv) any person controlling or controlled by the Subscriber; (v) investors in a fund-of-funds; (vi) the grantor of a revocable or grantor trust; (vii) the beneficiaries of an irrevocable trust; (viii) the individual who established an IRA; (ix) the participant in a self-directed pension plan; (x) the sponsor of any other pension plan; and (xi) any person being represented by the Subscriber in an agent, custodian, representative, intermediary, nominee or similar capacity. If the Beneficial Interest Holder is itself an entity, the information and representations set forth herein must also be given with respect to its individual beneficial owners. If the Subscriber is a publicly-traded company, it is only obligated to conduct due diligence as to its beneficial owners that own 5% or more interest in the company.

<sup>6</sup> The Treasury Department's Financial Crimes Enforcement Network ("**FinCEN**") issues advisories regarding countries of primary money laundering concern. FinCEN's advisories are posted at http://www.fincen.gov.

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<sup>(8)</sup> A Senior Foreign Political Figure, any member of a Senior Foreign Political Figure's Immediate Family or any Close Associate of a Senior Foreign Political Figure, or a corporation, business or other entity that has been formed for the benefit of the above listed individuals; or<br>

<br> (9) A Politically Exposed Person, any member of a Politically Exposed Person's Immediate Family or a Close Associate of a Politically Exposed Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber represents and warrants that (except as otherwise disclosed to the Company in writing) its subscription funds do not originate from, nor will they be routed through, an account maintained at a Foreign Shell Bank, an Offshore Bank, or a bank organized or chartered under the laws of a Non-Cooperative Jurisdiction or an OFAC Embargoed Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber represents and warrants that no capital commitment, contribution, or payment to the Company by the Subscriber and no distribution to the Subscriber by the Company shall cause the Company or the Advisor to be in violation of any applicable anti-money laundering, sanctions, or anti-terrorism laws and regulations including, but not limited to, the USA PATRIOT Act and the sanctions regulations administered by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp; If the Subscriber or any Beneficial Interest Holder is a financial institution as defined in the Bank Secrecy Act, 31 U.S.C. § 5312(a)(2)(A) – (X), and is investing in the Company on behalf, directly or indirectly, of any of its customer accounts (as defined in rules under the USA PATRIOT Act), the Subscriber represents and warrants that it and any Beneficial Interest Holder is aware of the obligations imposed upon it by the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, which comprises Title III of the USA PATRIOT Act, and is and shall remain in compliance with its obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Subscriber or any Beneficial Interest Holder is a European person or firm that is subject to local legislation implementing the EC Money Laundering Directives or is established or based in a non-EU jurisdiction (other than the United States) and subject to anti-money laundering legislation (any of the foregoing anti-money laundering legislation, "**Non-U.S. AML Regulations**"), the Subscriber represents and warrants that it and any Beneficial Interest Holder is aware of the obligations imposed on it by Non-U.S. AML Regulations and is and shall remain in compliance with its obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber acknowledges and agrees that any monies paid to it will be paid to the same account from which its subscription funds were originally remitted, unless the Company agrees otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp; If the Subscriber is a fund-of-funds, or is purchasing the Shares as agent, custodian, representative, intermediary/nominee or in any similar capacity for any other person, or is otherwise requested to do so by the Company, it represents and warrants that (i) it is in compliance with all applicable anti-money laundering, sanctions and anti-terrorism laws and regulations, (ii) it shall provide a copy of its anti-money laundering and know-your-customer policies (collectively, "**AML Policies**") to the Company, (iii) its AML Policies are designed to address applicable anti-money laundering, sanctions, and anti-terrorism laws and regulations, and (iv) it is in compliance with its AML Policies, its AML Policies have been approved by counsel or internal compliance personnel reasonably informed of anti-money laundering policies and their implementation and has not received a deficiency letter, negative report or any similar determination regarding its AML Policies from independent accountants, internal auditors or some other person responsible for reviewing compliance with its AML Policies.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber represents and warrants that, with respect to any Beneficial Interest Holder, it (i) has conducted thorough due diligence (and where appropriate, enhanced due diligence), (ii) has established the identity of those Beneficial Interest Holders and their respective source of funds, and (iii) will retain evidence of any such identities, any such source of funds and any such due diligence. The Subscriber represents and warrants that it does not know or have any reason to suspect that (i) the monies used to fund any Beneficial Interest Holder's direct or indirect investment in the Shares has been or will be derived from or related to any illegal activities, including without limitation money laundering activities; or (ii) the proceeds from any Beneficial Interest Holder's direct or indirect investment in the Shares will be used to finance any illegal activities, and the Subscriber has reasonable risk-based procedures in place to ensure itself of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber understands that the Company and its affiliates may take steps to verify the identity of the Subscriber and any Beneficial Interest Holder. The Subscriber agrees to promptly notify the Company of any change in information affecting the representations and covenants contained in this section "Anti-Money Laundering and Related Representations, Warranties and Covenants – all Investors." The Subscriber also agrees to provide the Advisor, the Company and Star Mountain with any additional information and/or documentation that any of such persons deems necessary or appropriate to ensure compliance with all applicable laws concerning money-laundering and similar activities. The Subscriber acknowledges that the Company shall be held harmless and be indemnified against any loss arising as a result of a failure to process the subscription application if any such information that is required by the Company is delayed or not provided by the Subscriber in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber acknowledges that the Company, Advisor, Star Mountain and their affiliates may be obliged under applicable laws to submit information to the relevant regulatory authorities if the Company, Advisor, Star Mountain and/or their affiliates know, suspect or have reasonable grounds to suspect that any person is engaged in money laundering, drug trafficking or the provision of financial assistance to terrorism and that the Company, Advisor, Star Mountain and/or their affiliates may not be permitted to inform anyone of the fact that such a report has been made. The Subscriber authorizes and consents to the Company releasing information about the Subscriber and, if applicable, any Beneficial Interest Holder, to appropriate governmental authorities if the Company determines in good faith that it is in the best interests of the Company in light of applicable anti-money laundering, sanctions, and anti-terrorism laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber is advised that, by law, the Company may be obligated to "freeze the account" of such Subscriber, either by prohibiting additional investments from the Subscriber, withholding distributions and/or segregating the assets in the account in compliance with governmental regulations, and the Company may also be required to report such action and to disclose the Subscriber's identity to OFAC or other authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber further acknowledges that, notwithstanding anything to the contrary contained in the Memorandum, any side letter or any other agreement, the Company and the Advisor may prohibit additional capital contributions by the Subscriber, restrict distributions to the Subscriber, suspend the payment of withdrawal proceeds to the Subscriber, or take any other reasonably necessary or advisable action with respect to the Shares, if the Company reasonably deems it necessary to do so to comply with anti-money laundering, sanctions, or anti-terrorism laws and regulations applicable to the Company, Advisor, Star Mountain, any of their affiliates or any of the Company's service providers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber agrees that neither the Company, Advisor, Star Mountain nor any of their affiliates shall have any liability to the Subscriber for any loss or liability that the Subscriber may suffer to the extent that it arises out of, or in connection with, compliance by the Company, Advisor, Star Mountain and/or their affiliates in good faith with the requirements of applicable anti-money laundering, sanctions, and anti-terrorism legislation or regulatory provisions.

#### Representations, Warranties and Covenants – Benefit Plan Investors
For the purpose of the following representations, references to "Subscriber" include references to the entity for which the Subscriber is investing, where appropriate. If the Subscriber is or will be in the future, or is or will be in the future acting on behalf of, (i) an employee benefit plan (as defined in Section 3(3) of the U.S. Employee Retirement Income Security Act of 1974, as amended ("**ERISA**")) subject to Title I of ERISA, (ii) a "plan" (including an individual retirement account ("**IRA**") or Keogh plan) subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the "**Code**"), (iii) any entity whose underlying assets include plan assets for purposes of ERISA or Section 4975 of the Code by reason of a plan's investment in the entity (a "**Plan Assets Entity**") or any other plan that is subject to laws or regulations that are similar to Title I of ERISA or Section 4975 of the Code ("**Similar Law**"), to induce the Company to accept this subscription, the Subscriber hereby makes the additional representations, warranties and covenants to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The person executing this Subscription Agreement on behalf of the Subscriber either is a "named fiduciary" (within the meaning of ERISA) of the Subscriber, or is authorized to act on behalf of a named fiduciary of the Subscriber pursuant to a proper delegation of authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; The execution and delivery of this Subscription Agreement and the consummation of the transactions contemplated hereunder, and in the Memorandum will not result in a breach or violation of any charter or organizational documents pursuant to which the Subscriber was formed, or any statute, rule, regulation or order of any court or governmental agency or body having jurisdiction over the Subscriber or any of its assets, or in any material respect, any mortgage, indenture, contract, agreement or instrument to which the Subscriber is a party or otherwise subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp; The investment in the Company is permitted by the governing documents of the Subscriber and such documents permit the Subscriber to invest in entities which will engage in the investment program described in the Memorandum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber, through appropriate fiduciaries, has carefully reviewed and understands the various risks of an investment in the Company, as well as the fees and conflicts of interest to which the Company is subject, as set forth in the Memorandum. The Subscriber hereby consents and agrees to the payment of the fees so described to the parties identified as the recipients thereof, and to such conflicts of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber is aware of and, in deciding to invest in the Company, has taken into consideration the diversification requirements of Section 404(a)(1)(C) of ERISA or other applicable law, if any, and the decision to invest in the Company is consistent with such provisions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber's decision to invest in the Company was made solely and independently by a fiduciary of the Subscriber who has no affiliation with the Company or any of its affiliates or employees and without relying on any recommendation of the Company or any of its affiliates or employees as a basis for its decision, and any ongoing evaluation of the Company as an investment in the Subscriber's overall portfolio (including any decision to remain invested in the Company or to make additions to or withdrawals from the Company) will be made solely and independently by such a fiduciary, without relying on any recommendation of the Company or any of its affiliates or employees as a basis for such decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp; The appropriate fiduciaries of the Subscriber have considered the investment in the Company in light of the risks relating thereto and fiduciary responsibility provisions (whether under ERISA or otherwise) applicable to the Subscriber and have determined that, in view of such considerations, the investment is appropriate for the Subscriber and is consistent with such fiduciaries' responsibilities (whether under ERISA or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber, through the appropriate fiduciaries, has been given the opportunity to discuss the Subscriber's investment in the Company, and the structure and operation of the Company with the Advisor and has been given all information that the Subscriber or the appropriate fiduciaries have requested and which the Subscriber or the appropriate fiduciaries deemed relevant to the Subscriber's decision to participate in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; To the extent (x) the Subscriber is an IRA, Keogh plan or other "plan" subject to Section 4975(e)(1) of the Code (or if the Subscriber is an entity whose underlying assets include the assets of such an account or plan) and (y) the Subscriber's Shares are being held by a custodian, the Subscriber acknowledges and agrees that (i) the Company may, without further instruction or consent of the Subscriber or any beneficial owner of the Subscriber, re-register the Subscriber's Shares in the name of the beneficial owner of such Subscriber upon instruction provided by such custodian that it is no longer willing to custody or act as custodian for the Subscriber's Shares and the Subscriber has not simultaneously provided a substitute custodian for such IRA, and (ii) such re-registration may have adverse consequences to the beneficial owner of such IRA or other plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp; The execution and delivery of this Subscription Agreement, and the acquisition and redemption of the Shares, do not and will not constitute a non-exempt prohibited transaction under ERISA or Section 4975 of the Code or a violation of any Similar Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By signing this Subscription Agreement, each Subscriber that is a Plan Assets Entity (including a Plan Assets Entity using the assets of an insurance company general account) hereby covenants that if, after its initial acquisition of Shares, at any time the percentage of the assets of such general account or Plan Assets Entity as applicable, that constitute "plan assets" for purposes of Title I of ERISA or Section 4975 of the Code exceeds the percentage specified by the Subscriber in Question 15(g) of the Subscriber Information Form, then such Subscriber shall promptly notify the Company of such occurrence in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp; The Subscriber expressly acknowledges that the Advisor has the authority to require the redemption, withdrawal or other cancellation of such Shares if the Advisor determines that the continued holding of such interest, in the opinion of the Advisor, could result in the Company being subject to ERISA or Section 4975 of the Code.

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#### Representations, Warranties and Covenants – Governmental Plan Investors and Foreign Plan Investors
For the purpose of the following representations, references to "Subscriber" include references to the entity for which the Subscriber is investing, where appropriate.

If the Subscriber is or will become, or is or will be acting on behalf of (x) a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, (y) an employee benefit plan maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens (as described in Section 4(b)(4) of ERISA) or (z) any other benefit plan that is subject to Similar Law, then (i) there is no provision in the instruments governing such plan or any U.S. federal, state or local or foreign law, rule, regulation or constitutional provision applicable to the plan that could in any respect affect the operation of the Company by the Advisor or prohibit any action contemplated by the operational documents and related disclosure of the Company, including, without limitation, the investments which may be made pursuant to the Company's investment strategies, the concentration of investments for the Company and the payment by the plan of incentive or other fees, and (ii) the plan's investment in the Company will not conflict with or violate the instruments governing such plan or any U.S. federal, state or local or foreign law, rule, regulation or constitutional provision applicable to the plan.

#### Representations, Warranties and Covenants – Non-U.S. Investors

#### Japanese Investors
For the purpose of the following representations, warranties and covenants, references to "**Japanese Investor**" means a Japanese resident, as defined in the first sentence of Article 6, Paragraph 1, Item 5 of the Foreign Exchange and Foreign Trade Law of Japan, or any person or entity that was solicited in Japan in connection with its subscription of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp; Each Subscriber who is a Japanese Investor and qualifies as a "qualified institutional investor" (*tekikaku kikan toshika*) ("**Qualified Institutional Investor**") as defined in Article 10, Paragraph 1 of the Cabinet Office Ordinance Concerning Definitions Provided in Article 2 of the Financial Instruments and Exchange Law of Japan:

<br> (10) hereby agrees that such Subscriber shall not transfer any Shares to another person in any way other than to other Qualified Institutional Investors;

<sup>(11)</sup> hereby represents and warrants that such Subscriber has received the investment warning that, (i) no securities registration pursuant to Article 4, Paragraph 1 of the Financial Instruments and Exchange Law of Japan (the "**FIEL**") has been made or will be made with respect to the solicitation of the application for the acquisition of the Shares pursuant to the private placement exemption as provided for in Article 23-13, Paragraph 1 of the FIEL (the "**Private Placement Warning for Qualified Institutional Investor**") and (ii) any such solicitation of the Shares is made on condition that the Shares held by the Qualified Institutional Investors may not be transferred to another person in any way other than to other Qualified Institutional Investors; and<br>

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<sup>(12)</sup> hereby confirms, undertakes and covenants that, at the time of transfer of the Shares, such Subscriber will provide the prospective transferee with a written notice which includes the Private Placement Warning for Qualified Institutional Investor, and that such Subscriber will also procure an agreement by which the transferee shall not transfer any of the Shares to any person in any way other than to other Qualified Institutional Investors.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp; Each Subscriber who is a Japanese Investor and does not qualify as a Qualified Institutional Investor:

<sup>(13)</sup> hereby represents and warrants that such Subscriber has received the investment warning that, (i) no securities registration pursuant to Article 4, Paragraph 1 of the FIEL has been made or will be made with respect to the solicitation of the application for the acquisition of the Shares pursuant to the private placement exemption as provided for in Article 23-13, Paragraph 4 of the FIEL (the "**Private Placement Warning for Non-Qualified Institutional Investor**"); and<br>

<br> (14) hereby confirms, undertakes and covenants that, at the time of transfer of the Shares, such Subscriber will provide the prospective transferee with a written notice which includes the Private Placement Warning for Non-Qualified Institutional Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber, whether or not a Qualified Institutional Investor, acknowledges and agrees that the above-mentioned transfer restrictions shall apply to the Subscriber in addition to any other applicable requirements or restrictions provided elsewhere in this Subscription Agreement.

#### United Kingdom Investors
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; If the Subscriber is a person domiciled or situated in, or with its registered office in, the United Kingdom, the Subscriber confirms that:

<br> (1) it is a "professional investor" as defined in Article 4(1)(ag) of the Directive 2011/61/EU (with the reference to the Directive 2004/39/EC being understood to be a reference to Directive 2014/65/EU); or

<sup>(2)</sup> it is a person to whom the Company may lawfully be marketed under the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "**FPO**"), including certain persons having professional experience in matters relating to investments, which includes persons who are authorized under the Financial Services and Markets Act 2000 as set out in Article 19 of the FPO, high net worth companies, high net worth unincorporated associations or partnerships, trustees of high value trusts, each as set out in Article 49 of the FPO, and persons who qualify as certified sophisticated investors as set out in Article 50 of the FPO; and<br>

<br> (3) it will not hold the Shares for or on behalf of any other person; and

<br> (4) the decision to invest in the Company was made solely by the Subscriber.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Subscriber acknowledges that it will be treated, for the purposes of the Directive 2011/61/EU ("**AIFMD**"), as an investor domiciled in the United Kingdom and therefore, for the purposes of assessing the requirements applicable to the Subscriber's investment in the Company, the laws and regulations of the United Kingdom implementing the AIFMD and governing the private placement of the Company shall apply to the exclusion of the laws and regulations of any other member state of the European Economic Area ("**EEA**").

#### Data Protection Representations and Warranties – For EEA Non-Natural Person Investors Only
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber represents and warrants that it has complied with all of its obligations under the GDPR and each other applicable law relating to the protection of personal data ("**Data Protection Legislation**"), in respect of any personal data the Subscriber has provided to the Company and/or Star Mountain, their affiliates, representatives and/or service providers (whether directly or indirectly) in connection with the Subscriber's investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber undertakes to continue to comply with all Data Protection Legislation in force from time to time for such period as the Subscriber is a shareholder of the Company, so far as it relates to the Subscriber's investment in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber acknowledges that it is a data controller of all personal data provided by it, whether directly or indirectly, to the Company and/or Star Mountain, their affiliates, representatives and/or service providers, and accordingly the Subscriber represents and warrants that it has collected, processes, and will transfer all such personal data lawfully in accordance with Data Protection Legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber represents and warrants that it provided or will provide the privacy notice in the form set out at Appendix E hereto to any individuals whose personal data was or is to be transferred, whether directly or indirectly, to the Company, Advisor, Star Mountain, or any of their affiliates, representatives and/or service providers, prior to obtaining and transferring that personal data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber represents and warrants that any personal data transferred, whether directly or indirectly, to the Company, Advisor, Star Mountain, or any of their affiliates, representatives and/or service providers, may be lawfully transferred to a jurisdiction outside the EEA and that the Subscriber has obtained the data subject's valid consent in compliance with Data Protection Laws to any such a transfer, having informed the data subject of the possible risks of such transfers.

#### Indemnification
The Subscriber understands the meaning and legal consequences of the representations, warranties, agreements, covenants and confirmations set out above and agrees that the subscription made hereby, if accepted by the Company, will be accepted in reliance thereon. The Subscriber agrees to indemnify and hold harmless the Company and the Advisor (including for this purpose their respective partners, members, other beneficial owners, officers and employees, and each person who controls either of them within the meaning of Section 20 of the Exchange Act) (each, an "**Indemnified Party**") from and against any and all loss, damage, liability or expense, including reasonable costs and attorneys' fees and disbursements, which an Indemnified Party may incur by reason of, or in connection with, any representation or warranty made herein (or in the accompanying Subscriber Information Form) not having been true, correct and complete when made or when deemed repeated, or any breach thereof, any misrepresentation made by the Subscriber or any failure by the Subscriber to fulfill any of the covenants or agreements set forth herein, in the Subscriber Information Form or in any other document provided by the Subscriber to the Company. This indemnification shall survive the Subscriber's death or disposition of its Shares of the Company.

------

#### Miscellaneous
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber agrees that neither this Subscription Agreement, nor any of the Subscriber's rights, interest or obligations hereunder, is transferable or assignable by the Subscriber, and further agrees that the transfer or assignment of any Shares acquired pursuant hereto shall be made only in accordance with the provisions hereof, the Memorandum and all applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber agrees that, except as permitted by applicable law, it may not cancel, terminate or revoke this Subscription Agreement or any agreement of the Subscriber made hereunder, and that this Subscription Agreement shall survive the death or legal disability of the Subscriber and shall be binding upon the Subscriber's heirs, executors, administrators, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Subscription Agreement has been duly authorized, executed and delivered by the Subscriber and, upon due authorization, execution and delivery by the Company, will constitute the valid and legally binding agreement of the Subscriber enforceable in accordance with its terms against the Subscriber, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other laws of general application relating to or affecting the enforcement of creditors' rights and remedies, as from time to time in effect, (ii) application of equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law), and (iii) considerations of public policy or the effect of applicable law relating to fiduciary duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp; The execution, delivery and performance of this Subscription Agreement and the Memorandum by the Subscriber do not and will not result in a breach of any of the terms, conditions or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, credit agreement, note or other evidence of indebtedness, or any lease or other agreement, or any license, permit, franchise or certificate, to which the Subscriber is a party or by which it is bound or to which any of its properties are subject, or require any authorization or approval under or pursuant to any of the foregoing, violate the organizational documents of the Subscriber, or violate in any material respect any statute, regulation, law, order, writ, injunction or decree to which the Subscriber is subject. The Subscriber has obtained all authorizations, consents, approvals and clearances of all courts, governmental agencies and authorities and such other persons, if any, required to permit the Subscriber to enter into this Subscription Agreement and the Memorandum and to consummate the transactions contemplated hereby and thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp; All of the representations, warranties, covenants, agreements, indemnities and confirmations set out above and in the Subscriber Information Form shall survive the acceptance of the subscription made herein and the issuance of any Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber hereby agrees that any representation made hereunder will be deemed to be reaffirmed by the Subscriber at any time it makes an additional capital contribution to the Company and the act of making such additional contribution will be evidence of such reaffirmation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber acknowledges that information concerning the Subscriber contained herein and in the records of the Company may be provided to Star Mountain and professional advisers for any purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Subscription Agreement together with the Subscriber Information Form constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; Within eight business days after receipt of a written request therefor from the Company, the Subscriber agrees to provide such information and to execute and deliver such documents as the Company may deem reasonably necessary to comply with any and all laws, rules, regulations, orders and ordinances to which the Company is or may be subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp; The Subscriber acknowledges and agrees that the Company may release confidential information about it or Related Person, to any governmental authority, self-regulatory organization or any other person, if the Company, in its sole discretion, determines that it is required to do so or it is in the best interest of the Company to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Subscriber is subscribing for Shares as a record owner in its capacity as agent, custodian, representative or nominee on behalf of one or more beneficial owners, it agrees that the representations, warranties and covenants made in this Subscription Agreement are made by it on behalf of itself and the beneficial owners of the Shares subscribed for hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp; To the extent permitted by applicable law, each party hereto hereby irrevocably waives all right of trial by jury in any action, proceeding or counterclaim, arising out of or in connection with this Subscription Agreement or any matter arising hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp; If any provision of this Subscription Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof which may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and to this extent the provisions hereof shall be severable.

#### Notices
Any notice required or permitted to be given to the Subscriber in relation to the Company shall be sent to the address specified in Question 2, Contact Information, of the Subscriber Information Form accompanying this Subscription Agreement or to such other address as the Subscriber designates by written notice received by the Company. To the extent required by the Advisers Act, as amended, the Advisor will notify the Company of any change in the membership of the Advisor within a reasonable time after the change.

#### Governing Law
This Subscription Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.

------

#### Third Party Rights
An Indemnified Party who is not a party to this Subscription Agreement and who is granted rights pursuant to this Subscription Agreement may, in its own right enforce its rights subject to and in accordance with the provisions of the Contracts (Rights of Third Parties) Law, 2014, as amended, modified, re-enacted or replaced.

Notwithstanding any other term of this Subscription Agreement, the consent of any Indemnified Party who is not a party to this Subscription Agreement is not required for any amendment to, or variation, release, rescission or termination of this Subscription Agreement.

------

#### SUBSCRIBER SIGNATURE PAGE
(Complete and sign)

By signing below, the Subscriber (1) confirms that the information contained in the Subscriber Information Form is accurate and complete, (2) agrees to the terms of the Subscription Agreement (including the subscription for the applicable class of shares in the amount set forth below) and the Memorandum, and (3) requests that the records of the Company reflect the Subscriber's admission as a shareholder.

#### SHARE CLASS SELECTION / INVESTMENT AMOUNT:

---

| |
|:---|
| ☐ **Share Class S**<sup>7</sup> |
| ☐ **Share Class D**<sup>7</sup> |
| ☐ **Share Class I** |
| ☐ **Share Class SP**<sup>8</sup> |
| **Investment Amount:** $_______________________________in aggregate amount of Shares |

---

---

| | |
|:---|:---|
| **Date:** | Print name of Subscriber |
|  | Signature |
|  | Print name and title/representative capacity<br> of any person signing on behalf of an entity. |
|  | Signature of Spouse or Other Joint Subscriber<br> (if applicable) |
|  | Print name of Spouse or Other Joint Subscriber<br> (if applicable<sup>♦</sup>) |
|  | Signature of IRA custodian or trustee<br> (if applicable<sup>♦</sup><sup>♦</sup>) |
|  | Print name and representative capacity of<br> any person signing as an IRA custodian or trustee |

---

------

<sup>7</sup> Investors who buy Class S Shares or Class D Shares through certain financial intermediaries may be directly charged transaction or other fees by such intermediaries, including upfront placement fees or brokerage commissions, in such amount as the financial intermediaries may determine, provided that selling agents limit such charges to a 1.50% cap on net asset value for Class D Shares and a 3.50% cap on net asset value for Class S Shares. Selling agents will not charge such fees on Class I Shares or Class SP Shares.

<sup>8</sup> Available for certain eligible investors as disclosed in the Memorandum.

♦&nbsp;&nbsp;&nbsp;&nbsp; If you are married and live in a community property state, both you and your spouse must sign. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Puerto Rico, Texas, Washington and Wisconsin.

♦♦&nbsp;&nbsp;&nbsp;&nbsp; The signature of the beneficial owner of the IRA is ***not*** required on this line. Only the signature of the IRA custodian or trustee is required on this line.

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#### FOR INTERNAL USE ONLY -- To be completed by Star Mountain Fund Management, LLC

#### Investor:____________

#### Control Number:______________
**Share Class:** ☐ Class S ☐ Class D ☐ Class I ☐ Class SP

#### Commitment/Subscription Amount of $_____________________ is _____ accepted _____ declined.

#### Capital Contribution Amount of $___________________ received.

#### Star Mountain Lower Middle-Market Capital Corp.

---

| | |
|:---|:---|
| By: | Star Mountain Fund Management, LLC, its investment adviser |
|  | By: |
|  | Name: |
|  | Title: |

---

Date:________________, 202__

------

#### ADDITIONAL SUBSCRIPTION FORM
Star Mountain Lower Middle-Market Capital Corp.

c/o Star Mountain Fund Management, LLC

140 East 45th Street

New York, NY 10017

Dear Sir/Madam:

The undersigned hereby wishes to make an additional capital commitment for the share class and in the amount set forth below (the "<u>Additional Capital Commitment</u>") to Star Mountain Lower Middle-Market Capital Corp. The undersigned agrees that as of the date set forth below (i) the undersigned is making the Additional Capital Commitment on the terms and conditions contained in the subscription agreement, dated as of ____________, previously executed by the undersigned and accepted by the Advisor (the "<u>Subscription Agreement</u>"), (ii) the representations and warranties of the undersigned contained in the Subscription Agreement are true and correct in all material respects, (iii) the information provided in the Subscriber Information Form and in the section Anti-Money Laundering and Related Representations, Warranties and Covenants in the Subscription Agreement is correct, and (iv) that the background information provided to the Advisor is true and correct in all material respects. The undersigned agrees to notify the Advisor promptly in writing should there be any change in any of the foregoing information.

Dated:

---

| | | |
|:---|:---|:---|
| **<u>FOR INDIVIDUALS</u>** | **<u>FOR INVESTORS OTHER THAN INDIVIDUALS</u>** | **<u>FOR INVESTORS OTHER THAN INDIVIDUALS</u>** |
| Signature | Print Name of Entity Investor | Print Name of Entity Investor |
| Print Name of Investor (i.e., individual name, JTWROS) | By: |  |
|  |  | Authorized Signature |
| Additional Investor Signature if Investing Jointly | Print Name | Print Name |
| Print Name | Print Title | Print Title |

---

---

| | |
|:---|:---|
| **ADDITIONAL SUBSCRIPTION AMOUNT:**<br>| **$**_____________________ |

---

---

| |
|:---|
| ☐ **Share Class S** |
| ☐ **Share Class D** |
| **☐ Share Class I** |
| **☐ Share Class SP** |

---

------

#### FOR INTERNAL USE ONLY -- To be completed by Star Mountain Fund Management, LLC

#### Investor:____________

#### Control Number:______________
**Share Class:** ☐ Class S ☐ Class D ☐ Class I ☐ Class SP

#### Additional Subscription Amount of $_____________________ is _____ accepted _____ declined.

#### Capital Contribution Amount of $___________________ received.

#### Star Mountain Lower Middle-Market Capital Corp.

---

| | | |
|:---|:---|:---|
| By: | Star Mountain Fund Management, LLC, its investment adviser | Star Mountain Fund Management, LLC, its investment adviser |
|  | By: | /s/ Brett A. Hickey |
|  | Name: | Brett A. Hickey |
|  | Title: |  |

---

Date:________________, 202__

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#### APPENDIX A

#### Definition of "Investments"

"**Investments**" means:

<br> (1) Securities, other than securities of an issuer that controls, is controlled by, or is under common control with, the Subscriber that owns such securities, unless the issuer of such securities is:

<br> (a) An investment company or a company that would be an investment company but for the exclusions or exemptions provided by the Investment Company Act, or a commodity pool; or

<br> (b) A Public Company (as defined below);

(c) A company with shareholders' equity of not less than $50,000,000 (determined in accordance with generally accepted accounting principles) as reflected on the company's most recent financial statements; provided, that such financial statements present the information as of a date within 16 months preceding the date on which the Subscriber acquires the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Real estate held for investment purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Commodity Interests (as defined below) held for investment purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Physical Commodities (as defined below) held for investment purposes;

<br> (5) To the extent not securities, Financial Contracts (as defined below) entered into for investment purposes;

<sup>(6)</sup> In the case of a Subscriber that is a company that would be an investment company but for the exclusions provided by Section 3(c)(1) or 3(c)(7) of the Investment Company Act, or a commodity pool, any amounts payable to such Subscriber pursuant to a firm agreement or similar binding commitment pursuant to which a person has agreed to acquire an interest in, or make capital contributions to, the Subscriber upon the demand of the Subscriber; and<br>

<br> (7) Cash and cash equivalents (including foreign currencies) held for investment purposes.

Real estate that is used by the owner or a Related Person (as defined below) of the owner for personal purposes, or as a place of business, or in connection with the conduct of the trade or business of such owner or a Related Person of the owner, will NOT be considered real estate held for investment purposes; *provided*, that real estate owned by a Subscriber who is engaged primarily in the business of investing, trading or developing real estate in connection with such business may be deemed to be held for investment purposes. However, residential real estate will not be deemed to be used for personal purposes if deductions with respect to such real estate are not disallowed by Section 280A of the Code.

Appendix A<br> A-1

------

A Commodity Interest or Physical Commodity owned, or a Financial Contract entered into, by the Subscriber who is engaged primarily in the business of investing, reinvesting, or trading in Commodity Interests, Physical Commodities or Financial Contracts in connection with such business may be deemed to be held for investment purposes.

"**Commodity Interests**" means commodity futures contracts, options on commodity futures contracts, and options on physical commodities traded on or subject to the rules of:

<br> (a) Any contract market designated for trading such transactions under the Commodity Exchange Act and the rules thereunder; or

<br> (b) Any board of trade or exchange outside the United States, as contemplated in Part 30 of the rules under the Commodity Exchange Act.

"**Financial Contract**" means any arrangement that:

<br> (a) takes the form of an individually negotiated contract, agreement, or option to buy, sell, lend, swap, or repurchase, or other similar individually negotiated transaction commonly entered into by participants in the financial markets;

<br> (b) is in respect of securities, commodities, currencies, interest or other rates, other measures of value, or any other financial or economic interest similar in purpose or function to any of the foregoing; and

<br> (c) is entered into in response to a request from a counterparty for a quotation, or is otherwise entered into and structured to accommodate the objectives of the counterparty to such arrangement.

"**Physical Commodities**" means any physical commodity with respect to which a Commodity Interest is traded on a market specified in the definition of Commodity Interests above.

"**Public Company**" means a company that:

<br> (a) files reports pursuant to Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended; or

<br> (b) has a class of securities that are listed on a Designated Offshore Securities Market, as defined by Regulation S of the Securities Act.

"**Related Person**" means a person who is related to the Subscriber as a sibling, spouse or former spouse, or is a direct lineal descendant or ancestor by birth or adoption of the Subscriber, or is a spouse of such descendant or ancestor; *provided*, that, in the case of a Family Company, a Related Person includes any owner of the Family Company and any person who is a Related Person of such an owner. "**Family Compan**y" means a company, partnership or trust that owns not less than $5,000,000 in investments and that is owned directly or indirectly by or for two or more natural persons who are related as siblings or spouse (including former spouses), or direct lineal descendants by birth or adoption, spouses of such persons, the estates of such persons, or foundations, charitable organizations or trusts established for the benefit of such persons.

Appendix A<br> A-2

------

For purposes of determining the amount of investments owned by a company, there may be included investments owned by majority-owned subsidiaries of the company and investments owned by a company ("**Parent Company**") of which the company is a majority-owned subsidiary, or by a majority-owned subsidiary of the company and other majority-owned subsidiaries of the Parent Company.

Appendix A<br> A-3

------

#### APPENDIX B

#### Other Definitions

**AMLSG List Country:** A country specified in the list published by the Cayman Islands' Anti-Money Laundering Steering Group. For such list, see: https://www.cima.ky/list-of-equivalent-jurisdictions.

**Close Associate**: With respect to a Senior Foreign Political Figure, a person who is widely and publicly known internationally to maintain an unusually close relationship with the Senior Foreign Political Figure, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the Senior Foreign Political Figure. With respect to a Politically Exposed Person, any natural person who is known to hold the ownership of control of a legal instrument or person jointly with a Politically Exposed Person, or who maintains some other kind of close business or personal relationship with a Politically Exposed Person, or who holds the ownership or control of a legal instrument or person which is known to have been established to the benefit of a Politically Exposed Person.

**FATF**: The Financial Action Task Force on Money Laundering.

**Foreign Bank**: An organization that (a) is organized under the laws of a country outside the United States; (b) engages in the business of banking; (c) is recognized as a bank by the bank supervisory or monetary authority of the country of its organization or principal banking operations; (d) receives deposits to a substantial extent in the regular course of its business; and (e) has the power to accept demand deposits, but does not include the U.S. branches or agencies of a foreign bank.

**Foreign Shell Bank**: A Foreign Bank without a Physical Presence in any country: does not include a Regulated Affiliate.

**Government Entity**: Any government or any state, department or other political subdivision thereof, or any governmental body, agency, authority or instrumentality in any jurisdiction exercising executive, legislative, regulatory or administrative functions of or pertaining to government.

**Immediate Family**: With respect to a Senior Foreign Political Figure or a Politically Exposed Person, typically includes that person's parents, siblings, spouse, children and in-laws.

**Municipal Entity**: Any state, a political subdivision thereof or municipal corporate instrumentality of the above, including (a) any agency, authority or instrumentality of the above, (b) any plan, program or pool of assets sponsored or established by the above and (c) any other issuer of municipal securities.

**Municipal Escrow Investments**: Proceeds of municipal securities and any other funds of a Municipal Entity or obligated person, such as a guarantor, that are deposited in an escrow account to pay the principal of, premium, if any, and interest on one or more issues of municipal securities.

Appendix B<br> B-1

------

**Non-Cooperative Jurisdiction**: Any foreign country or territory that has been designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization, such as FATF, of which the United States is a member and with which designation the United States representative to the group or organization continues to concur. For FATF's list of non-cooperative countries and territories, see http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions**.**

**Offshore Bank:** A Foreign Bank operating under an Offshore Banking License.

**Offshore Banking License**: A license to conduct banking activities which, as a condition of the license, prohibits the licensed entity from conducting banking activities with the citizens of, or with the local currency of, the country which issued the license.

**Physical Presence:** A place of business that is maintained by a Foreign Bank and is located at a fixed address, other than solely a post office box or an electronic address, in a country in which the Foreign Bank is authorized to conduct banking activities, at which location the Foreign Bank: (a) employs one or more individuals on a full-time basis; (b) maintains operating records related to its banking activities; and (c) is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities.

**Politically Exposed Person:** Includes: (a) a person who is or has been entrusted with prominent public functions by a foreign country, for example a Head of State or of government, senior politician, senior government, judicial or military official, senior executive of a state owned corporation, and important political party official; (b) a person who is or has been entrusted domestically with prominent public functions, for example a Head of State or of government, senior politician, senior government, judicial or military official, senior executive of a state owned corporation, and important political party official; and (c) a person who is or has been entrusted with a prominent function by an international organization like a member of senior management, such as a director, a deputy director and a member of the board or equivalent functions.

**Proceeds of Municipal Securities**: Any of the following: (a) monies derived by a Municipal Entity from the sale of municipal securities; (b) investment income derived from the investment or reinvestment of the monies in (a); (c) any monies of a Municipal Entity or obligated person, such as a guarantor, held in funds under legal documents for the municipal securities that are reasonably expected to be used as security or a source of payment for the payment of the debt service on the municipal securities, including, reserves, sinking funds, and pledge funds created for such purposes and (d) the investment income derived from the investment or reinvestment of monies in such funds.

**Publicly Traded Company**: An entity whose securities are listed on a recognized securities exchange or quoted on an automated quotation system in the U.S. or country other than a Non-Cooperative Jurisdiction or a wholly-owned subsidiary of such an entity.

**Qualified Plan**: A tax qualified pension or retirement plan in which at least 100 employees participate that is maintained by an employer that is organized in the U.S. or is a U.S. Government Entity.

**Regulated Affiliate**: A Foreign Shell Bank that: (a) is an affiliate of a depository institution, credit union, or Foreign Bank that maintains a Physical Presence in the U.S. or a foreign country, as applicable; and (b) is subject to supervision by a banking authority in the country regulating such affiliated depository institution, credit union, or Foreign Bank.

Appendix B<br> B-2

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**Related Person**: With respect to any entity, interest holder, director, senior officer, trustee, beneficiary or grantor of such entity; provided that in the case of an entity that is a Publicly Traded Company or a Qualified Plan, the term "Related Person" shall exclude any interest holder holding less than 5% of any class of securities of such Publicly Traded Company and beneficiaries of such Qualified Plan.

**Senior Foreign Political Figure**: A senior official in the executive, legislative, administrative, military or judicial branches of a non-U.S. government (whether elected or not), a senior official of a major non-U.S. political party, or a senior executive of a non-U.S. government-owned corporation. In addition, a Senior Foreign Political Figure includes any corporation, business or other entity that has been formed by, or for the benefit of, a Senior Foreign Political Figure.

**USA PATRIOT Act**: The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 (Pub. L. No. 107-56).

Appendix B<br> B-3

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#### APPENDIX C

#### IRS WITHHOLDING TAX FORMS

All Subscribers are required to submit appropriate tax forms. With respect to Subscribers purchasing interests as either joint tenants with right of survivorship or tenants-in-common, please note that each individual must sign and complete the appropriate U.S. Internal Revenue Service ("**IRS**") Form(s), including any successor forms. Subscribers who are grantors of a "grantor trust," and "grantor trusts" with multiple grantors, must provide an IRS Form W-9 or W-8 for each grantor.

Please carefully review the instructions accompanying the IRS Form(s) that the Subscriber is completing. The Company will not consider an IRS Form complete unless the Subscriber has submitted all statements, certifications or other documents required by the applicable IRS Form(s). Please note that Subscribers may be required to provide updated tax forms (and certain other information from time to time).

The most recent versions of the relevant IRS Forms and their instructions are located at the IRS website at <u>http://www.irs.gov</u>, and are listed below. Subscribers should contact their own tax advisors on how to complete such forms and any attachments.

#### IRS Form W-9 and Instructions
<u>http://www.irs.gov/pub/irs-pdf/fw9.pdf</u>

<u>http://www.irs.gov/pub/irs-pdf/iw9.pdf</u>

#### IRS Form W-8BEN-E and Instructions
<u>http://www.irs.gov/pub/irs-pdf/fw8bene.pdf</u>

http://www.irs.gov/pub/irs-pdf/iw8bene.pdf

#### IRS Form W-8BEN and Instructions
<u>http://www.irs.gov/pub/irs-pdf/fw8ben.pdf</u>

<u>http://www.irs.gov/pub/irs-pdf/iw8ben.pdf</u>

#### IRS Form W-8ECI and Instructions
<u>http://www.irs.gov/pub/irs-pdf/fw8eci.pdf</u>

<u>http://www.irs.gov/pub/irs-pdf/iw8eci.pdf</u>

#### IRS Form W-8EXP and Instructions
<u>http://www.irs.gov/pub/irs-pdf/fw8exp.pdf</u>

<u>http://www.irs.gov/pub/irs-pdf/iw8exp.pdf</u>

#### IRS Form W-8IMY and Instructions
<u>http://www.irs.gov/pub/irs-pdf/fw8imy.pdf</u>

<u>http://www.irs.gov/pub/irs-pdf/iw8imy.pdf</u>

Appendix C<br> C-1

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#### APPENDIX D

#### Definition of " U.S. Person "

For purposes of the Subscription Agreement, the term "U.S. Person" means:

<br> (1) Any natural person resident in the United States;

<br> (2) Any partnership or corporation organized or incorporated under the laws of the United States;

<br> (3) Any estate of which any executor or administrator is a U.S. person;

<br> (4) Any trust of which any trustee is a U.S. person;

<br> (5) Any agency or branch of a foreign entity located in the United States;

<br> (6) Any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person;

<br> (7) Any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and

<br> (8) Any partnership or corporation if:

<br> (A) Organized or incorporated under the laws of any foreign jurisdiction; and

<br> (B) Formed by a U.S. person principally for the purpose of investing in securities not registered under the Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in § 230.501(a)) who are not natural persons, estates or trusts.

Appendix D<br> D-1

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#### APPENDIX E

#### GENERAL DATA PROTECTION REGULATION

#### DATA PROTECTION INFORMATION AND DISCLOSURES TO EUROPEAN UNION INVESTORS

------

#### Why are you receiving this notice?
It will be necessary for you to provide certain personal information to Star Mountain Lower Middle-Market Capital Corp., (the "**Company**") and Star Mountain Fund Management, LLC ("**Star Mountain**", together, "**us**" or "**we**") about you, or, in the case of a Subscriber that is not a natural person, information relating to your officers, directors, partners, members, ultimate beneficial owners or employees. In accordance with our obligations under the EU General Data Protection Regulation (2016/679) ("**GDPR**"), we are giving you this notice to let you know how we treat the personal information you provide.

If at any point you have questions about this notice or how your personal data will be treated, you should contact the Company at investors@starmountaincapital.com.

#### Who is responsible for your personal data?
The Company (and, to a limited extent, the Advisor) will be the "data controller" for the information you provide. This means that we will be responsible for how your personal data is treated.

#### What personal information will be collected and used?
The types of personal information relating to you that we may process include:

<br> • your (or your officers', directors', partners', members' or employees') name, address, and other contact information, date of birth and gender;

<br> • your (or your officers', directors', partners', members' or employees') bank account details and tax identification details;

<br> • your place of employment or other source(s) of wealth;

<br> • your communications with personnel of Star Mountain;

<br> • information regarding your eligibility to acquire Shares of the Company; and

<br> • copies of your (or your officers', directors', partners', members' or employees') passport and other official documentation for identity or address verification purposes.

#### What do we use your personal information for?
We need your personal information for the following primary reasons.

*First*, we need to obtain and retain certain personal information about you in order to perform our contractual obligations to you as a Subscriber in the Company. For example: (i) using the information you provide to process and register your initial subscription; (ii) using your name and contact details for updating you on the Company's performance and other matters relating to its operation; and (iii) using your bank account details to remit funds to you as necessary.

Appendix E<br> E-1

------

*Second*, we need to obtain and retain personal data from you to comply with our legal and regulatory obligations. These include, preventing fraud and conducting "Know Your Client", anti-money laundering, terrorist financing, and conflict checks. The information we require to perform these checks may include copies of your official identification documents, utility bills, home address, date of birth, Social Security number or other personal information that can help us confirm your identity.

In addition to the above, we also need your personal information:

• to exercise and comply with the Company's and Star Mountain's rights and obligations at law or under regulation, where such obligations are not set out under the laws of EU member states, or under contract, including for the establishment, exercise or defense of legal claims;

• to manage and administer the Company's and Star Mountain's business and to improve relationships with you and other investors in the Company or investors in other funds managed by Star Mountain, and assist with investor relationship management, and for marketing and business development activities and analysis;

• to communicate with you in respect of the Company or other products offered by Star Mountain or its affiliates, for risk assessment and control, for statistical and trend analysis, for system administration, operation, testing and support and to operate control systems and management information systems;

<br> • to help detect, prevent, investigate, and prosecute fraud and/or other criminal activity;

<br> • to manage Star Mountain's information technology and to ensure the security of Star Mountain's systems;

• to disclose information to a governmental, tax or regulatory body, financial market, broker or other intermediaries, counterparties, court, auditors or other third parties and to conduct compliance activities, when any of Star Mountain and the Company think this is in any of their, or someone else's interests, but where EU law does not require the Company or Star Mountain to make this disclosure or conduct these activities;

<br> • to establish, exercise or defend legal claims and in order to protect and enforce Star Mountain's and the Company's rights, property, or safety, or to assist the investors in the Company or investors in other funds managed by Star Mountain, or others to do this;

<br> • to investigate and respond to any complaints about Star Mountain and its business or any incidents relating to Star Mountain or the Company or Star Mountain's business and to help maintain quality and to deal with complaints and disputes; and

<br> • to make certain assessments about you in order to assess your investment objectives, risk tolerance, and understanding of investment risk to assess the suitability of an investment in the Company or other product offered by Star Mountain or its affiliates.

When processing your personal information, each of the Company and Star Mountain will be subject to, and shall comply with, the relevant requirements contained in the GDPR.

Appendix E<br> E-2

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What happens if you choose not to provide your personal data?

As explained above, we require your personal data to be able to comply with our legal and regulatory obligations, to operate the fund and to perform your investment. Accordingly, if you do not provide the information requested, we will not be able to accept your subscription application.

#### Who do we share your personal information with?
The Company and/or Star Mountain may share certain of your personal information with the following categories of third parties for the following reasons:

<br> • the Company's administrator and any of its affiliates and other sub-processors as may be necessary to provide fund administration services for the purposes of carrying out money laundering checks and administering your investment in the Company;

<br> • advisers (e.g. auditors, legal counsel and tax advisers) to the Company and/or Star Mountain relating to or in connection with your subscription to the Company;

<br> • affiliates of the Company and/or Star Mountain (including their officers, directors, partners or employees) for the purpose of the management of your investment; and

<br> • law enforcement agencies, regulatory or tax authorities and other governmental or public agencies or authorities.

They may in turn use the services of their affiliates or service providers to process your personal information where necessary or appropriate. Where we share your personal information with a third party, we require the recipients of that personal information to put in place adequate measures to protect it.

#### Is your personal data transferred outside of Europe?
The Company's operations involve various affiliated entities and non-affiliated service providers based outside of the European Economic Area (the "**EEA**") to enable the Company to operate and fulfil your investment and meet our own legal and regulatory obligations. Sometimes, the data protection laws in the recipient's jurisdiction are less protective than those in the EEA.

Our non-EEA third-party suppliers to which we transfer personal data to facilitate and manage your investment are currently located in the following jurisdictions: the British Virgin Islands, the Cayman Islands and the United States of America.

Our non-EEA affiliates to which we transfer personal data to facilitate and manage your investment are currently located in: the United States of America, Hong Kong, South Korea and Japan.

When we transfer your personal information outside of the EEA to a jurisdiction with a less robust data protection regime than the EEA, we will take appropriate steps to ensure it is adequately protected in compliance with GDPR. We will do this by entering into appropriate data transfer agreements with third-party recipients of your personal information incorporating model clauses approved by the European Commission governing such data transfers. Please contact the company at investors@starmountaincapital.com if you would like a copy of the model clauses or further information regarding these transfers.

Appendix E<br> E-3

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#### How long is your personal information retained?
We will not retain your personal information for longer than is necessary for the purposes explained above. Generally, we will retain your personal information specifically concerning your investment for a minimum of 6 years after you have exited your investment in the Company. We may retain your personal information for longer if it is considered necessary, for example, in light of actual or potential legal action or a regulatory investigation at the time of scheduled erasure. We may retain your name, email address, and other contact details for a longer period for the purposes of marketing further fund raisings to you in the future.

#### Your rights in relation to the personal information we process about you
You have various rights in relation to the personal information we hold about you. These include:

<br> • the right to request access to your personal information and obtain a copy of the information we hold about you;

<br> • the right to correct your personal information that we hold where it is incomplete or inaccurate;

<br> • the right to have your personal information erased where there is no good reason for us continuing to use or retain it;

<br> • the right to request that your personal information is used only for restricted purposes;

<br> • if the lawful basis for processing your personal information is either our or a third party's legitimate interests, the right to object to your personal information being processed;

<br> • the right to require certain of your personal information to be transferred to you or a third party; and

<br> • the right to lodge a complaint with the relevant data protection authority in your jurisdiction (for example, the Information Commissioner's Office in the United Kingdom).

If you wish to exercise any of these rights you should contact the Company at <u>investors@starmountaincapital.com</u>.

#### Questions or complaints
If you have any questions or complaints regarding the processing of your personal information by the Company and/or Star Mountain, in the first instance, please contact the Company and/or Star Mountain directly. **If you do NOT wish for the Company and/or Star Mountain to also use your information in order to provide you with information regarding investments or products sponsored by Star Mountain or its affiliates in which you may be interested, please contact Star Mountain**.

Appendix E<br> E-4<br>

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## Exhibit 10.12

------

#### EXHIBIT 10.12

#### <br>

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### MULTIPLE CLASS PLAN
March 31, 2026

This Multiple Class Plan (this "<u>Plan</u>") is adopted pursuant to Rule 18f-3(d) under the Investment Company Act of 1940, as amended (the "<u>1940 Act</u>"), by Star Mountain Lower Middle-Market Capital Corp., a Delaware corporation (the "<u>Company</u>").

<u>W I T N E S S E T H:</u>

**WHEREAS**, the Company is a closed-end management investment company that has elected to be regulated as a business development company;

**WHEREAS**, the Company has been granted exemptive relief from the Securities and Exchange Commission that permits the Company to issue multiple classes of shares, subject to the condition that the Company must comply with the provisions of Rule 18f-3 under the 1940 Act as though such rule applies to business development companies;

**WHEREAS**, the shares of common stock of the Company (the "<u>Shares</u>") are divided into one or more separate classes;

**WHEREAS**, the Company desires to adopt this Plan in order that the Company may issue multiple classes of Shares (each, a "<u>Class</u>"); and

**WHEREAS**, the Board of Directors of the Company (the "<u>Board</u>", and each director, a "<u>Director</u>"), including a majority of the Directors who are not "interested persons" (as defined in Section 2(a)(19) the 1940 Act) of the Company (the "<u>Independent Directors</u>"), in considering whether the Company should adopt and implement this Plan, has evaluated such information and considered such pertinent factors as it deemed necessary to undertake an informed evaluation of this Plan and determination as to whether this Plan should be adopted and implemented, and has determined that the adoption and implementation of this Plan, including the expense allocation contemplated herein, are in the best interests of each Class individually, as well as the best interests of the Company.

**NOW THEREFORE**, the Company adopts this Plan pursuant to Rule 18f-3 under the 1940 Act, on the following terms and conditions:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The effective date of this Plan (the "<u>Effective Date</u>") shall be the date set forth above.

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company may issue Shares in one or more Classes, as set forth in Exhibit A, as may be amended from time to time. Shares so issued will have the rights and preferences set forth in the Company's Certificate of Incorporation and Bylaws (each as amended from time to time), any applicable resolutions adopted by the Board from time to time and the Company's then current private placement memorandum (as amended, restated and/or supplemented from time to time, including by the information incorporated by reference therein, the "<u>PPM</u>") relating to the Classes.

------

3.&nbsp;&nbsp;&nbsp;&nbsp; Shares issued in Classes will be issued subject to, and in accordance with, the terms of Rule 18f-3 under the 1940 Act, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; each Class may have a different arrangement for stockholder services or the distribution of Shares or both, and will pay all of the expenses of that arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; each Class may pay a different share of other expenses, not including advisory or custodial fees or other expenses related to the management of the Company's assets (other than incentive fees), if these expenses are actually incurred in a different amount by that Class, or if the Class receives services of a different kind or to a different degree than other Classes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp; each Class will have exclusive voting rights on any matter submitted to stockholders that relates solely to its arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp; each Class will have separate voting rights on any matter submitted to stockholders in which the interests of one Class differ from the interests of any other Class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; except as otherwise permitted under Rule 18f-3 under the 1940 Act, each Class will have the same rights and obligations as each other Class; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of one Class of the Company may be exchanged for or converted into Shares of another Class of the Company as set forth in the Company's PPM or as otherwise permitted by the officers of the Company.

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nothing in this Plan will be deemed to require the Company to take any action contrary to its Certificate of Incorporation or Bylaws, each as amended from time to time, or any applicable statutory or regulatory requirement to which it is subject or by which it is bound, or to relieve or deprive the Board of the responsibility for and control of the conduct of the affairs of the Company.

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Plan will continue in effect indefinitely unless terminated by a vote of the Board.

6.&nbsp;&nbsp;&nbsp;&nbsp; This Plan may be amended at any time by the Board, provided that any material amendment of this Plan will be effective only upon approval by a vote of the Board, and a majority of the Independent Directors.

7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Plan will be construed in accordance with the internal laws of the State of Delaware and the applicable provisions of the 1940 Act.

8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If any provision of this Plan is held or made invalid by a court decision, statute, rule or otherwise, the remainder of this Plan will not be affected thereby.

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#### EXHIBIT A

#### Classes as of March 31, 2026

---

| |
|:---|
| **<u>Class</u>** |
|  Class I<br> Class SP |
|  Class D |
|  Class S |

---

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## Exhibit 10.13

------

#### EXHIBIT 10.13

#### <br>

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### DISTRIBUTION AND SERVICING PLAN

March 31, 2026

This Distribution and Servicing Plan (this "Plan") has been adopted on a voluntary basis and in conformity with Rule 12b-1 (the "Rule") under the Investment Company Act of 1940, as amended (the "1940 Act"), by Star Mountain Lower Middle-Market Capital Corp., a Delaware corporation that has elected to be regulated as a business development company under the 1940 Act (the "Company"), with respect to its classes of shares of common stock (each, a "Class") listed on <u>Appendix A</u>, as amended from time to time, subject to the terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Distribution Fee and Stockholder Servicing Fee** 

The Company may pay to any distributor of its shares of common stock (the "Distributor"), with respect to and at the expense of each Class listed on <u>Appendix A</u>, a fee for (i) distribution and sales support services (the "Distribution Fee"), as applicable, and/or (ii) stockholder services (the "Servicing Fee"), and each as more fully described below (together, the "Stockholder Servicing and/or Distribution Fee"), such fee to be paid quarterly at the rate per annum of the aggregate NAV as of the beginning of the first calendar day of each applicable quarter of the Class specified with respect to such Class under the column "Stockholder Servicing and/or Distribution Fee" on <u>Appendix A</u>. The Distribution Fee under this Plan will be used primarily to compensate the Distributor for such services provided in connection with the offering and sale of shares of the applicable Class, and to reimburse the Distributor for related expenses incurred, including payments by the Distributor to compensate or reimburse brokers, other financial institutions or other industry professionals (collectively, "Selling Agents"), for distribution services and sales support services provided and related expenses incurred by such Selling Agents. Payments of the Distribution Fee on behalf of a particular Class must be in consideration of services rendered for or on behalf of such Class. However, joint distribution or sales support financing with respect to the shares of the Class (which financing may also involve other investment portfolios or companies that are affiliated persons of such a person, or affiliated persons of the Distributor) are permitted in accordance with applicable law. Payments of the Servicing Fee will be used to compensate the Distributor for personal services and/or the maintenance of stockholder accounts services provided to stockholders in the related Class and to reimburse the Distributor for related expenses incurred, including payments by the Distributor to compensate or reimburse brokers, dealers, other financial institutions or other industry professionals that are furnishing such services. Payments of the Stockholder Servicing and/or Distribution Fee may be made without regard to expenses actually incurred. In addition to the payment of the Stockholder Servicing and/or Distribution Fees set forth on Appendix A hereto, the Company may pay for (i) certain due diligence expenses and other platform fees and expenses related to the potential offering of shares on a Selling Agent platform, (ii) expenses incurred in connection with the printing and mailing of offering materials to other than current stockholders and the printing and mailing of sales literature, and (iii) any expenses incurred related to one or more third parties that provide, track, monitor and/or maintain databases, subscriptions, and customer relationship management services in respect of the potential offering of shares on a Selling Agent platform; provided that any such expenses shall not exceed $50,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Calculation and Payment of Fees** 

The amount of the Stockholder Servicing and/or Distribution Fee payable with respect to each Class listed on <u>Appendix A</u> will be calculated at the rate per annum of the aggregate NAV as of the beginning of the first calendar day of each applicable quarter, payable quarterly in arrears, at the applicable annual rates indicated on <u>Appendix A</u>. The Stockholder Servicing and/or Distribution Fee will be calculated and paid separately for each Class.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Approval of Plan** 

This Plan will become effective, as to any Class (including any Class not currently listed on <u>Appendix A</u>), upon its approval by (a) a majority of the Board of Directors, including a majority of the directors who are not "interested persons" (as defined in the 1940 Act) of the Company and who have no direct or indirect financial interest in the operation of this Plan or in any agreements related to this Plan ("Qualified Director"), pursuant to a vote cast at a meeting called for the purpose of voting on the approval of this Plan (or as may otherwise be permitted by applicable law and regulations or by orders of or guidance from the Securities and Exchange Commission), and (b) with respect to Section 1 of this Plan only, if this Plan is adopted for a Class after any public offering of shares of the Class or the sale of shares of the Class to persons who are not affiliated persons of the Company, affiliated persons of such persons, promoters of the Company, or affiliated persons of such promoters, a majority of the outstanding voting securities (as defined in the 1940 Act) of such Class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Continuance of the Plan** 

This Plan will continue in effect with respect to a Class for one year from the date set forth above, and from year to year thereafter indefinitely so long as such continuance is specifically approved at least annually by the Company's Board of Directors in the manner described in Section 3(a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Implementation** 

All agreements with any person relating to implementation of this Plan with respect to any Class shall be in writing, and any agreement related to this Plan with respect to any Class shall provide: (a) that such agreement may be terminated at any time, without payment of any penalty, by vote of a majority of the Qualified Directors or by a majority vote of the outstanding voting securities of the relevant Class, on not more than 60 days' written notice to any other party to the agreement; and (b) that such agreement shall terminate automatically in the event of its assignment (as defined under the 1940 Act).

For the purposes of this Plan, the "affirmative vote of a majority of the outstanding shares" of the Company means the affirmative vote, at a duly called and held meeting of stockholders of the Company, (a) of the holders of 67% or more of the shares of the Company present (in person or by proxy) and entitled to vote at the meeting, if the holders of more than 50% of the outstanding shares of the Company entitled to vote at the meeting are present in person or by proxy or (b) of the holders of more than 50% of the outstanding shares of the Company entitled to vote at the meeting, whichever is less. For the purposes of this Plan, the terms "interested person" and "assignment" have their respective meanings defined in the 1940 Act, subject, however, to the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the Securities and Exchange Commission or its staff; and the term "approve at least annually" will be construed in a manner consistent with the 1940 Act and the rules and regulations under the 1940 Act and any applicable guidance or interpretation of the Securities and Exchange Commission or its staff.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Termination** 

This Plan may be terminated at any time with respect to the shares of any Class by vote of a majority of the Qualified Directors, or by a majority vote of the outstanding voting securities of the relevant Class.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Amendments** 

This Plan may not be amended with respect to any Class so as to increase materially the amount of the Stockholder Servicing and/or Distribution Fee with respect to such Class without approval in the manner described in Section 3(a) above and by a majority vote of the outstanding voting securities of the relevant Class. All material amendments to this Plan shall be approved in the manner provided for approval of this Plan in Section 3(a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Written Reports** 

While this Plan is in effect, the Company's Board of Directors will receive, and will review, at least quarterly, written reports complying with the requirements of the Rule, which set out the amounts expended under this Plan and the purposes for which those expenditures were made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Preservation of Materials** 

The Company will preserve copies of this Plan, any agreement relating to this Plan and any report made pursuant to Section 8 above, for a period of not less than six years (the first two years in an easily accessible place) from the date of this Plan, agreement or report.

[*Remainder Intentionally Left Blank*]

------

#### APPENDIX A TO DISTRIBUTION AND SERVICING PLAN

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

---

| | |
|:---|:---|
| **Class of Shares of Common Stock** | **Stockholder Servicing and/or Distribution Fee** |
| Class S Shares | 0.75% |
| Class D Shares | 0.25% |
| Class I Shares | N/A |
| Class SP Shares | N/A |

---

------

## Exhibit 10.14

------

#### EXHIBIT 10.14

#### <br>

#### STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

#### CLASS SP SHARES

#### EXPENSE SUPPORT AGREEMENT
THIS EXPENSE SUPPORT AGREEMENT (the "Agreement") is effective as of the 31 day of March 2026, by and between STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP., a Delaware corporation (the "Company"), and the investment adviser of such Company, STAR MOUNTAIN FUND MANAGEMENT, LLC (the "Advisor").

**WHEREAS,** the Company is an externally managed, closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended (the "1940 Act");

**WHEREAS,** the Advisor renders advice and services to the Company pursuant to the terms and provisions of an Amended and Restated Investment Advisory Agreement between the Company and the Advisor dated as of the 14<sup>th</sup> day of June 2023 (the "Investment Advisory Agreement");

**WHEREAS,** the Company's Board of Directors (the "Board") and the Advisor have determined that it is appropriate and in the best interests of the Company to limit the expenses of Class SP Shares of the Company and, therefore, have entered into this Agreement in order to maintain the Company's Class SP expenses as set forth herein; and

**WHEREAS**, the Company and the Advisor desire to enter into the Agreement as described below.

**NOW THEREFORE,** in consideration of the covenants and the mutual promises hereinafter set forth, the parties, intending to be legally bound hereby, mutually agree as follows:

**1.**&nbsp;&nbsp;&nbsp;&nbsp; **<u>Definition</u>**. For purposes of this Agreement, the term "Expenses" with respect to Class SP Shares of the Company, is defined to include all expenses of every character of the Company incurred in connection with Class SP Shares except (1) management fees paid under the Investment Advisory Agreement; (2) taxes; (3) acquired fund fees and expenses; and (4) custody fees.

**2.**&nbsp;&nbsp;&nbsp;&nbsp; **<u>Reimbursement of Expenses</u>**. The Advisor hereby agrees to reimburse a portion of Class SP's total Expenses equal to 0.25% of Class SP's average quarterly net assets on an annualized basis. The Advisor may not recoup Expenses reimbursed pursuant to this Agreement for Class SP's Expenses.

**3.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Term</u>**. This Agreement shall become effective on the date first above written and shall continue in effect until terminated.

**4.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Termination</u>**. This Agreement may be terminated at any time, and without payment of any penalty, by the Board of Directors of the Company, upon sixty (60) days' written notice to the Advisor. This Agreement may not be terminated by the Advisor without the consent of the Board of Directors of the Company. This Agreement will automatically terminate if the Investment Advisory Agreement is terminated, with such termination effective upon the effective date of the Investment Advisory Agreement's termination.

**5.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Assignment</u>**. This Agreement and all rights and obligations hereunder may not be assigned without the written consent of the other party.

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**6.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Severability</u>**. If any provision of this Agreement shall be held or made invalid by a court decision, statute or rule, or shall be otherwise rendered invalid, the remainder of this Agreement shall not be affected thereby.

**7.**&nbsp;&nbsp;&nbsp;&nbsp; **<u>Governing Law</u>**. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware without giving effect to the conflict of laws principles thereof; provided that nothing herein shall be construed to preempt, or to be inconsistent with, any federal law, regulation or rule, including the 1940 Act and the Investment Advisers Act of 1940, as amended, and any rules and regulations promulgated thereunder.

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**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be duly executed and attested by their duly authorized officers, all on the day and year first above written.

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| | | | |
|:---|:---|:---|:---|
| **STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.** | **STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.** | **STAR MOUNTAIN FUND MANAGEMENT, LLC** | **STAR MOUNTAIN FUND MANAGEMENT, LLC** |
| **By:** | **/s/** Brett Hickey | **By:** | **/s/** Brett Hickey |
| **Name:** | Brett Hickey | **Name:** | Brett Hickey |
| **Title:** | Chief Executive Officer | **Title:** | Chief Executive Officer |

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## Exhibit 21.1

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EXHIBIT 21.1

#### LIST OF SUBSIDIARIES
Star Mountain Lower Middle-Market Capital Holdings, LLC

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## Exhibit 31.1

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#### EXHIBIT 31.1

#### CERTIFICATION PURSUANT TO

#### RULE 13a-14(a) and 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
I, Brett A. Hickey, certify that:

<br> 1. I have reviewed this Annual Report on Form 10-K of Star Mountain Lower Middle-Market Capital Corp. (the "registrant");

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

3. Based on my knowledge, the consolidated 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:

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

(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 consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

(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

(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):

<br> (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

<br> (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.

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| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ Brett A. Hickey |
|  |  | **Brett A. Hickey** |
|  |  | **President and Chief Executive Officer** |
|  |  | **(Principal Executive Officer)** |

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## Exhibit 31.2

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#### EXHIBIT 31.2

#### CERTIFICATION PURSUANT TO

#### RULE 13a-14(a) and 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
I, Christopher J. Gimbert, certify that:

<br> 1. I have reviewed this Annual Report on Form 10-K of Star Mountain Lower Middle-Market Capital Corp. (the "registrant");

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

3. Based on my knowledge, the consolidated 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:

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

(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 consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

(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

(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):

<br> (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

<br> (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.

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| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ Christopher J. Gimbert |
|  |  | **Christopher J. Gimbert** |
|  |  | **Chief Financial Officer** |
|  |  | **(Principal Financial Officer)** |

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## Exhibit 32.1

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#### EXHIBIT 32.1

#### CERTIFICATION PURSUANT TO

#### SECTION 1350, CHAPTER 63 OF TITLE 18, UNITED STATES CODE, AS ADOPTED PURSUANT

#### TO

#### SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the accompanying Annual Report of Star Mountain Lower Middle-Market Capital Corp. (the "Company") on Form 10-K for the year ended December 31, 2025 (the "Report"), I, Brett A. Hickey, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

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

<br> (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ Brett A. Hickey |
|  |  | **Brett A. Hickey** |
|  |  | **President and Chief Executive Officer** |
|  |  | **(Principal Executive Officer)** |

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## Exhibit 32.2

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#### EXHIBIT 32.2

#### <br>

#### CERTIFICATION PURSUANT TO

#### SECTION 1350, CHAPTER 63 OF TITLE 18, UNITED STATES CODE, AS ADOPTED PURSUANT

#### TO

#### SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the accompanying Annual Report of Star Mountain Lower Middle-Market Capital Corp. (the "Company") on Form 10-K for the year ended December 31, 2025 (the "Report"), I, Christopher J. Gimbert, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

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

<br> (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ Christopher J. Gimbert |
|  |  | **Christopher J. Gimbert** |
|  |  | **Chief Financial Officer** |
|  |  | **(Principal Financial Officer)** |

---

------