# EDGAR Filing Document

**Accession Number:** 0001849089
**File Stem:** 0001628280-26-032846
**Filing Date:** 2026-5
**Character Count:** 316301
**Document Hash:** 6faf6adced72ec4cc05691d5b03ac120
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-032846.hdr.sgml**: 20260508

**ACCESSION NUMBER**: 0001628280-26-032846

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 82

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260508

**DATE AS OF CHANGE**: 20260508

**FILER**: 

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

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 814-01427
- **FILM NUMBER:** 26958325

**BUSINESS ADDRESS:**
- **STREET 1:** 175 SW 7TH STREET
- **STREET 2:** UNIT 2307
- **CITY:** MIAMI
- **STATE:** FL
- **BUSINESS PHONE:** 7866880975

**MAIL ADDRESS:**
- **STREET 1:** 175 SW 7TH STREET
- **STREET 2:** UNIT 2307
- **CITY:** MIAMI
- **STATE:** FL

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

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

?xml version='1.0' encoding='ASCII'? ls-20260331

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 10-Q**

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

For the Quarterly Period Ended March 31, 2026

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

For the transition period from______ to______

Commission File Number 814-01427

**LAFAYETTE SQUARE USA, INC.**

(Exact name of registrant as specified in its charter)

---

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

---

175 SW 7th St, Unit 2307

Miami, FL 33130

(Address of principal executive offices)

(786) 753-7096

(Registrant's telephone number, including area code)

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

---

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

---

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

Common Stock, par value $0.001 per share

(Title of class)

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

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

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

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

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

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

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

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

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

---

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

---

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

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

Exchange Act. ☒

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

No ☒

As of March 31, 2026, there was no established public market for the registrant's common shares.

As of May 8, 2026 the Registrant had 29,407,040 shares of common stock, $0.001 par value per share, outstanding.

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  | <u>[Cautionary Statement Regarding Forward-Looking Statements](#icf58b7f161364a20b04cd7a86c0bfeb9_10)</u> | <u>[1](#icf58b7f161364a20b04cd7a86c0bfeb9_10)</u> |
| <u>[Part I. Financial Information](#icf58b7f161364a20b04cd7a86c0bfeb9_187)</u> | <u>[Part I. Financial Information](#icf58b7f161364a20b04cd7a86c0bfeb9_187)</u> |  |
| <u>[Item 1.](#icf58b7f161364a20b04cd7a86c0bfeb9_73)</u> | <u>[Financial Statements](#icf58b7f161364a20b04cd7a86c0bfeb9_73)</u> |  |
|  | <u>[Consolidated Statements of Assets and Liabilities as of](#icf58b7f161364a20b04cd7a86c0bfeb9_79)</u>March 31, 2026<u>[(unaudited) and](#icf58b7f161364a20b04cd7a86c0bfeb9_79)</u>December 31, <br>2025<br>| <u>[3](#icf58b7f161364a20b04cd7a86c0bfeb9_79)</u> |
|  | <u>[Consolidated Statements of Operations for the](#icf58b7f161364a20b04cd7a86c0bfeb9_82)</u>three months ended March 31, 2026<u>[and](#icf58b7f161364a20b04cd7a86c0bfeb9_82)</u>2025 <br><u>[(unaudited)](#icf58b7f161364a20b04cd7a86c0bfeb9_82)</u><br>| <u>[4](#icf58b7f161364a20b04cd7a86c0bfeb9_82)</u> |
|  | <u>[Consolidated Statements of Changes in Net Assets for the](#icf58b7f161364a20b04cd7a86c0bfeb9_85)</u>three months ended March 31, 2026<u>[and](#icf58b7f161364a20b04cd7a86c0bfeb9_85)</u><br>2025<u>[(unaudited)](#icf58b7f161364a20b04cd7a86c0bfeb9_85)</u><br>| <u>[5](#icf58b7f161364a20b04cd7a86c0bfeb9_85)</u> |
|  | <u>[Consolidated Statements of Cash Flows for the](#icf58b7f161364a20b04cd7a86c0bfeb9_88)</u>three months ended March 31, 2026<u>[and](#icf58b7f161364a20b04cd7a86c0bfeb9_88)</u>2025 <br><u>[(unaudited)](#icf58b7f161364a20b04cd7a86c0bfeb9_88)</u><br>| <u>[6](#icf58b7f161364a20b04cd7a86c0bfeb9_88)</u> |
|  | <u>[Consolidated Schedule of Investments as of](#icf58b7f161364a20b04cd7a86c0bfeb9_91)</u>March 31, 2026<u>[(unaudited) and](#icf58b7f161364a20b04cd7a86c0bfeb9_91)</u>December 31, 2025 | <u>[7](#icf58b7f161364a20b04cd7a86c0bfeb9_91)</u> |
|  | <u>[Notes to Consolidated Financial Statements (unaudited)](#icf58b7f161364a20b04cd7a86c0bfeb9_103)</u> | <u>[26](#icf58b7f161364a20b04cd7a86c0bfeb9_103)</u> |
| <u>[Item 2.](#icf58b7f161364a20b04cd7a86c0bfeb9_190)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#icf58b7f161364a20b04cd7a86c0bfeb9_190)</u> | <u>[53](#icf58b7f161364a20b04cd7a86c0bfeb9_190)</u> |
| <u>[Item 3.](#icf58b7f161364a20b04cd7a86c0bfeb9_67)</u> | <u>[Quantitative and Qualitative Disclosures about Market Risk](#icf58b7f161364a20b04cd7a86c0bfeb9_67)</u> | <u>[76](#icf58b7f161364a20b04cd7a86c0bfeb9_67)</u> |
| <u>[Item 4.](#icf58b7f161364a20b04cd7a86c0bfeb9_145)</u> | <u>[Controls and Procedures](#icf58b7f161364a20b04cd7a86c0bfeb9_145)</u> | <u>[78](#icf58b7f161364a20b04cd7a86c0bfeb9_145)</u> |
| <u>[Part II. Other Information](#icf58b7f161364a20b04cd7a86c0bfeb9_196)</u> | <u>[Part II. Other Information](#icf58b7f161364a20b04cd7a86c0bfeb9_196)</u> |  |
| <u>[Item 1.](#icf58b7f161364a20b04cd7a86c0bfeb9_199)</u> | <u>[Legal Proceedings](#icf58b7f161364a20b04cd7a86c0bfeb9_199)</u> | <u>[79](#icf58b7f161364a20b04cd7a86c0bfeb9_199)</u> |
| <u>[Item 1A.](#icf58b7f161364a20b04cd7a86c0bfeb9_202)</u> | <u>[Risk Factors](#icf58b7f161364a20b04cd7a86c0bfeb9_202)</u> | <u>[79](#icf58b7f161364a20b04cd7a86c0bfeb9_202)</u> |
| <u>[Item 2.](#icf58b7f161364a20b04cd7a86c0bfeb9_205)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#icf58b7f161364a20b04cd7a86c0bfeb9_205)</u> | <u>[79](#icf58b7f161364a20b04cd7a86c0bfeb9_205)</u> |
| <u>[Item 3.](#icf58b7f161364a20b04cd7a86c0bfeb9_208)</u> | <u>[Defaults Upon Senior Securities](#icf58b7f161364a20b04cd7a86c0bfeb9_208)</u> | <u>[79](#icf58b7f161364a20b04cd7a86c0bfeb9_208)</u> |
| <u>[Item 4.](#icf58b7f161364a20b04cd7a86c0bfeb9_211)</u> | <u>[Mine Safety Disclosures](#icf58b7f161364a20b04cd7a86c0bfeb9_211)</u> | <u>[79](#icf58b7f161364a20b04cd7a86c0bfeb9_211)</u> |
| <u>[Item 5.](#icf58b7f161364a20b04cd7a86c0bfeb9_214)</u> | <u>[Other Information](#icf58b7f161364a20b04cd7a86c0bfeb9_214)</u> | <u>[79](#icf58b7f161364a20b04cd7a86c0bfeb9_214)</u> |
| <u>[Item 6.](#icf58b7f161364a20b04cd7a86c0bfeb9_217)</u> | <u>[Exhibits](#icf58b7f161364a20b04cd7a86c0bfeb9_217)</u> | <u>[79](#icf58b7f161364a20b04cd7a86c0bfeb9_217)</u> |
| <u>[SIGNATURES](#icf58b7f161364a20b04cd7a86c0bfeb9_181)</u> | <u>[SIGNATURES](#icf58b7f161364a20b04cd7a86c0bfeb9_181)</u> | <u>[80](#icf58b7f161364a20b04cd7a86c0bfeb9_181)</u> |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Cautionary Statement Regarding Forward-Looking Statements**

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

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

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

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

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

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

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

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

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

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

limitation:

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

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

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

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

• U.S. trade policy developments, tariffs and other trade restrictions;

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

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

• changes in the general interest rate environment;

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

epidemic;

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

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

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

• our expected financing arrangements and expected investments;

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

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

• our contractual arrangements and relationships with third parties;

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

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

• our use of financial leverage;

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

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

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

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

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

disruptions, and cybersecurity attacks;

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

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

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

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

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

• our ability to adhere to and meet our goals, including our Goal2030™ (as defined in this report);

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

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

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

• our ability to encourage our portfolio companies to adopt Managerial Assistance Recommendations;

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

companies;

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

within our portfolio companies;

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

programs aligned with our Goal2030™; and

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

business development company (a "BDC").

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

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

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

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

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

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

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

1934, as amended (the "Exchange Act").

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Statements of Assets and Liabilities**

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

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
|  | (unaudited) |  |
| **Assets**  |  |  |
| Investments, at fair value:  |  |  |
| Non-controlled/non-affiliated investments at fair value (amortized cost of $762,652 and <br>$737,077 as of March 31, 2026 and December 31, 2025, respectively)<br>| $757691 | $736333 |
| Non-controlled/affiliated investments at fair value (amortized cost of $26,098 and <br>$22,443 as of March 31, 2026 and December 31, 2025, respectively)<br>| 25666 | 22127 |
| Controlled/affiliated investments at fair value (amortized cost of $38,907 and $30,921 <br>as of March 31, 2026 and December 31, 2025, respectively)<br>| 38703 | 30753 |
| Cash and cash equivalents | 193198 | 199187 |
| Deferred financing costs | 9072 | 9575 |
| Interest receivable | 4731 | 2964 |
| Other assets | 2471 | 2534 |
| Capital call receivable | 10 |  |
| **Total assets** | $1031542 | $1003473 |
| **Liabilities** |  |  |
| Secured borrowings (see Note 5) | $289982 | $276982 |
| SBA-guaranteed debentures (see Note 5) | 230000 | 230000 |
| Notes payable, net of deferred financing costs of $1,512 and $1,598, respectively (see <br>Note 5)<br>| 63488 | 63402 |
| Distributions payable | 9197 | 9239 |
| Interest and financing payable | 3679 | 7517 |
| Management fee payable (see Note 6) | 1882 | 1841 |
| Accounts payable and accrued expenses | 1688 | 1223 |
| Incentive fee payable (see Note 6) | 1603 | 1516 |
| Due to affiliate | 260 | 246 |
| Income tax payable | 178 | 178 |
| **Total liabilities** | 601957 | 592144 |
| **Commitments and Contingencies (See Note 7)** |  |  |
| **Net assets** |  |  |
| Preferred stock, par value $0.001 per share (50,000,000 shares authorized, 0 shares <br>issued and outstanding as of March 31, 2026 and December 31, 2025)<br>|  |  |
| Common stock, par value $0.001 per share (450,000,000 shares authorized, 29,313,127 <br>and 27,776,022 shares issued and outstanding as of March 31, 2026 and December 31, <br>2025, respectively)<br>| 29 | 28 |
| Paid-in capital in excess of par | 433470 | 410747 |
| Distributable earnings (losses) | (3914) | 554 |
| **Total net assets** | 429585 | 411329 |
| **Total liabilities and net assets** | $1031542 | $1003473 |
| **Net asset value per common share** | $14.66 | $14.81 |

---

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

**Lafayette Square USA, Inc.**

**Consolidated Statements of Operations**

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

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
|  | (unaudited) | (unaudited) |
| **Investment Income:**  |  |  |
| Interest income from non-controlled/non-affiliated investments: |  |  |
| Cash | $20918 | $16503 |
| Fee income | 380 | 727 |
| Interest income from non-controlled/affiliated investments: |  |  |
| Cash | 92 | 647 |
| Interest income from controlled/affiliated investments: |  |  |
| Cash | 31 |  |
| Interest from cash and cash equivalents | 928 | 1438 |
| **Total investment income** | 22349 | 19315 |
| **Expenses:** |  |  |
| Interest and financing expenses (see Note 5) | $8054 | $6015 |
| Management fee (see Note 6) | 1882 | 1478 |
| Incentive fee (see Note 6) | 1603 | 1514 |
| General and administrative expenses | 618 | 250 |
| Administrative services fee (see Note 6) | 500 | 450 |
| Professional fees | 469 | 309 |
| Directors' fees | 125 | 80 |
| Income tax expense |  | 629 |
| **Total expenses** | 13251 | 10725 |
| **Net investment income (loss)** | 9098 | 8590 |
| **Net realized and unrealized gains (losses) on investment transactions:** |  |  |
| **Net realized gains (losses) on investments:** |  |  |
| Net realized gains (losses) on investments in non-controlled/non-affiliated <br>investments<br>|  | 58 |
| Total net realized gains (losses) on investments |  | 58 |
| **Net change in unrealized gains (losses) on investments:** |  |  |
| Net change in unrealized gains (losses) on investments in non-controlled/non-<br>affiliated investments<br>| (4217) | 899 |
| Net change in unrealized gains (losses) on investments in non-controlled/<br>affiliated investments<br>| (116) | 1600 |
| Net change in unrealized gains (losses) on investments in controlled/affiliated <br>investments<br>| (36) |  |
| Total net change in unrealized gains (losses) on investments | (4369) | 2499 |
| **Net increase (decrease) in net assets resulting from operations** | $4729 | $11147 |
| Weighted average common shares outstanding | 27942796 | 23977487 |
| Net investment income (loss) per common share (basic and diluted) | $0.33 | $0.36 |
| Earnings (loss) per common share (basic and diluted) | $0.17 | $0.46 |

---

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

**Lafayette Square USA, Inc.**

**Consolidated Statements of Changes in Net Assets**

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Par** <br>**Amount\***<br>| <br>**Paid in** <br>**Capital** <br>**Excess of Par**<br>| <br>**Distributable** <br>**Earnings** <br>**(Losses)**<br>| <br>**Total net** <br>**assets**<br>|
| **Balance, December 31, 2024** | 23797438 | $24 | $351181 | $1201 | $352406 |
| Capital transactions: |  |  |  |  |  |
| Issuance of common stock | 116132 |  | 1721 |  | 1721 |
| Reinvestment of stockholder distributions | 182443 |  | 2692 |  | 2692 |
| Net increase in net assets from capital transactions | 298575 |  | 4413 |  | 4413 |
| Net increase (decrease) in net assets resulting from <br>operations:<br>|  |  |  |  |  |
| Net investment income (loss) |  |  |  | 8590 | 8590 |
| Net realized gain (loss) |  |  |  | 58 | 58 |
| Net change in unrealized gain (losses) |  |  |  | 2499 | 2499 |
| Total increase (decrease) in net assets resulting from <br>operations<br>|  |  |  | 11147 | 11147 |
| Distributions to stockholders from: |  |  |  |  |  |
| Distributable earnings |  |  |  | (8393) | (8393) |
| Total distributions to stockholders |  |  |  | (8393) | (8393) |
| **Total increase (decrease) for the three months ended** <br>**March 31, 2025**<br>| 298575 |  | 4413 | 2754 | 7167 |
| **Balance, March 31, 2025** | 24096013 | $24 | $355594 | $3955 | $359573 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Par** <br>**Amount**<br>| <br>**Paid in** <br>**Capital** <br>**Excess of Par**<br>| <br>**Distributable** <br>**Earnings** <br>**(Losses)**<br>| <br>**Total net** <br>**assets**<br>|
| **Balance at December 31, 2025** | 27776022 | $28 | $410747 | $554 | $411329 |
| Capital transactions: |  |  |  |  |  |
| Issuance of common stock | 1444394 | 1 | 21347 |  | 21348 |
| Reinvestment of stockholder distributions | 92711 |  | 1376 |  | 1376 |
| Net increase in net assets from capital transactions | 1537105 | 1 | 22723 |  | 22724 |
| Net increase (decrease) in net assets resulting from <br>operations:<br>|  |  |  |  |  |
| Net investment income (loss) |  |  |  | 9098 | 9098 |
| Net realized gain (loss) |  |  |  |  |  |
| Net change in unrealized gain (losses) |  |  |  | (4369) | (4369) |
| Total increase (decrease) in net assets resulting from <br>operations<br>|  |  |  | 4729 | 4729 |
| Distributions to stockholders from: |  |  |  |  |  |
| Distributable earnings |  |  |  | (9197) | (9197) |
| Total distributions to stockholders |  |  |  | (9197) | (9197) |
| **Total increase (decrease) for the three months ended** <br>**March 31, 2026**<br>| 1537105 | 1 | 22723 | (4468) | 18256 |
| **Balance, March 31, 2026** | 29313127 | $29 | $433470 | $(3914) | $429585 |

---

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

**Lafayette Square USA, Inc.**

**Consolidated Statements of Cash Flows**

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

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
|  | (unaudited) | (unaudited) |
| **Cash flows from operating activities**  |  |  |
| Net increase (decrease) in net assets resulting from operations | $4729 | $11147 |
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations <br>to net cash provided by (used in) operating activities:<br>|  |  |
| Net realized (gain) loss on investments |  | (58) |
| Net change in unrealized (gain) loss on investments | 4369 | (2499) |
| Purchases of investments | (72626) | (189022) |
| Net accretion of discount on investments | (1162) | (614) |
| Proceeds from sales and repayments of investments | 36572 | 80555 |
| Amortization of deferred financing costs | 591 | 369 |
| Changes in operating assets and liabilities: |  |  |
| Interest receivable | (1767) | (964) |
| Due from affiliate |  | 71 |
| Other assets | 63 | (336) |
| Deferred revenue payable |  | (1181) |
| Accounts payable and accrued expenses | 465 | 292 |
| Management fee payable | 41 | 103 |
| Incentive fee payable | 87 | (64) |
| Interest and financing payable | (3838) | (1745) |
| Income tax payable |  | 629 |
| Due to affiliate | 14 | 232 |
| **Net cash provided by (used in) operating activities** | (32462) | (103085) |
| **Cash flows from financing activities** |  |  |
| Proceeds from issuance of shares of common stock | 21338 | 1721 |
| Distributions paid | (7863) | (5161) |
| Proceeds from secured borrowings | 100000 | 113750 |
| Repayments of secured borrowings | (87000) | (72500) |
| Proceeds from SBA-guaranteed debentures |  | 9995 |
| Deferred financing costs paid | (2) | (604) |
| **Net cash provided by (used in) financing activities** | 26473 | 47201 |
| **Net increase (decrease) in cash and cash equivalents** | (5989) | (55884) |
| **Cash and cash equivalents at beginning of period** | 199187 | 202452 |
| **Cash and cash equivalents at end of period** | $193198 | $146568 |
| **Supplemental information** <sup>(1)</sup>**:** |  |  |
| Cash paid for interest | $6927 | $7369 |
| Shares issued from dividend reinvestment plan | $1376 | $2692 |

---

(1) Deferred financing costs paid of $604 for the three months ended March 31, 2025, previously presented as supplemental

information, has been removed to conform to the current period presentation.

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

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments**

**March 31, 2026**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Non-controlled/non-affiliated investments**  | **Non-controlled/non-affiliated investments**  | **Non-controlled/non-affiliated investments**  |  |  |  |  |  |  |  |  |  |
| **Aerospace & Defense** | **Aerospace & Defense** | **Aerospace & Defense** |  |  |  |  |  |  |  |  |  |
| C Speed LLC | (6)(7)(8)(12)(23)(30) | First lien senior secured loan | S+ | 7.40% | 11.10% | 10/1/2024 | 10/1/2029 | $8200 | $8166 | $8077 | 1.9% |
| C Speed LLC | (6)(7)(28) | First lien senior secured loan | S+ | 7.40% | 11.10% | 10/1/2024 | 10/1/2029 | 15071 | 14966 | 14844 | 3.5% |
|  |  |  |  |  |  |  |  |  | 23132 | 22921 | 5.4% |
| **Commercial Services & Supplies** | **Commercial Services & Supplies** | **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |
| Ironhorse Purchaser, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.25% | 8.95% | 12/21/2023 | 9/30/2027 | 9773 | 9690 | 9773 | 2.3% |
| Rotolo Consultants, Inc. | (6)(7)(23)(29) | First lien senior secured loan | S+ | 5.50% | 9.20% | 1/31/2025 | 1/31/2031 | 5233 | 5217 | 5233 | 1.2% |
| Rotolo Consultants, Inc. | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 5.50% | 9.20% | 1/31/2025 | 1/31/2031 | 1399 | 1352 | 1399 | 0.3% |
| Rotolo Consultants, Inc. | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.50% | 9.20% | 1/31/2025 | 1/31/2031 | 20029 | 20012 | 20029 | 4.7% |
| TEC Services LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 5.50% | —% | 1/9/2025 | 12/31/2029 |  |  |  | —% |
| TEC Services LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 5.50% | —% | 1/9/2025 | 12/31/2029 |  |  |  | —% |
| TEC Services LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.50% | 9.30% | 1/9/2025 | 12/31/2029 | 9875 | 9875 | 9875 | 2.3% |
| Zero Waste Recycling LLC | (6)(7)(23)(29) | First lien senior secured loan | S+ | 6.45% | 10.39% | 6/29/2022 | 5/15/2026 | 4915 | 5077 | 4915 | 1.1% |
| Zero Waste Recycling LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 6.45% | 10.38% | 6/29/2022 | 5/15/2026 | 12560 | 12560 | 12560 | 2.9% |
| ZWR Holdings, Inc. |  | Subordinated debt | 14.00% (Inc. <br>10.00% PIK) | 14.00% (Inc. <br>10.00% PIK) | 14.00% | 8/16/2021 | 2/12/2027 | 1921 | 1921 | 1921 | 0.4% |
| ZWR Holdings, Inc. |  | Warrants |  |  |  | 8/16/2021 | 2/16/2027 | 24953 |  |  | —% |
|  |  |  |  |  |  |  |  |  | 65704 | 65705 | 15.2% |
| **Construction & Engineering** | **Construction & Engineering** | **Construction & Engineering** |  |  |  |  |  |  |  |  |  |
| Ickler Electric Corporation | (6)(7)(12)(23)(28) | First lien senior secured loan | S+ | 6.50% | 10.20% | 4/17/2025 | 4/17/2030 | 38211 | 37911 | 38211 | 8.9% |
| Ickler Electric Corporation | (12)(23) | Subordinated debt |  | 14.00% | 14.00% | 4/17/2025 | 10/17/2030 | 1572 | 1557 | 1572 | 0.4% |
| Ickler Electric Corporation | (12) | Warrants |  |  |  | 4/17/2025 | 4/17/2030 | 37608 |  |  | —% |
| Synergi, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 7.45% | 11.41% | 12/19/2022 | 12/17/2027 | 15319 | 15267 | 15089 | 3.5% |
| Synergi, LLC | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 7.45% | 11.15% | 12/19/2022 | 12/17/2027 | 225 | 212 | 222 | 0.1% |
| Trilon Group, LLC | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 4.50% | 8.16% | 3/24/2023 | 5/25/2029 | 196 | 190 | 196 | —% |
|  |  |  |  |  |  |  |  |  | 55137 | 55290 | 12.9% |
| **Diversified Consumer Services** | **Diversified Consumer Services** | **Diversified Consumer Services** |  |  |  |  |  |  |  |  |  |
| Med Learning Group, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.75% | 9.45% | 3/26/2024 | 12/30/2027 | 15373 | 15294 | 15373 | 3.6% |
| Med Learning Group, LLC | (6)(7)(23)(29) | First lien senior secured loan | S+ | 5.75% | 9.45% | 3/26/2024 | 12/30/2027 | 4245 | 4234 | 4245 | 1.0% |
|  |  |  |  |  |  |  |  |  | 19528 | 19618 | 4.6% |
| **Diversified Financial Services** | **Diversified Financial Services** | **Diversified Financial Services** |  |  |  |  |  |  |  |  |  |
| Core Capital Partners II-S LP | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 7.50% | 11.20% | 10/11/2024 | 10/11/2027 | 5246 | 5185 | 5246 | 1.2% |
| Core Capital Partners II-S LP | (6)(7)(23)(28) | First lien senior secured loan | S+ | 7.50% | 11.20% | 10/11/2024 | 10/11/2027 | 28000 | 27850 | 28000 | 6.5% |
|  |  |  |  |  |  |  |  |  | 33035 | 33246 | 7.7% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**March 31, 2026**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Diversified Telecommunication Services** | **Diversified Telecommunication Services** | **Diversified Telecommunication Services** |  |  |  |  |  |  |  |  |  |
| Johnsoncomm LLC | (6)(7)(15)(23)(28) | First lien senior secured loan | S+ | 9.00% | 12.70% | 1/31/2025 | 1/31/2030 | 15971 | 15852 | 15832 | 3.7% |
|  |  |  |  |  |  |  |  |  | 15852 | 15832 | 3.7% |
| **Electrical Equipment** | **Electrical Equipment** | **Electrical Equipment** |  |  |  |  |  |  |  |  |  |
| Electro Technical Industries, LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 5.50% | —% | 3/31/2025 | 3/31/2030 |  | (13) |  | —% |
| Electro Technical Industries, LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.50% | 9.16% | 3/31/2025 | 3/31/2030 | 12458 | 12380 | 12458 | 2.9% |
|  |  |  |  |  |  |  |  |  | 12367 | 12458 | 2.9% |
| **Food & Staples Retailing** | **Food & Staples Retailing** | **Food & Staples Retailing** |  |  |  |  |  |  |  |  |  |
| Genuine Food Lab LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 8.25% | —% | 6/06/2025 | 6/06/2030 |  | (21) |  | —% |
| Genuine Food Lab LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 8.25% | 11.95% | 6/06/2025 | 6/06/2030 | 10000 | 9915 | 9825 | 2.3% |
|  |  |  |  |  |  |  |  |  | 9894 | 9825 | 2.3% |
| **Food Products** | **Food Products** | **Food Products** |  |  |  |  |  |  |  |  |  |
| Capital City LLC | (6)(7)(15)(29) | First lien senior secured loan | S+ | 8.00% | 11.70% | 9/20/2024 | 9/20/2029 | 640 | 623 | 635 | 0.1% |
| Capital City LLC | (6)(7)(15)(28) | First lien senior secured loan | S+ | 8.00% | 11.70% | 9/20/2024 | 9/20/2029 | 494 | 490 | 490 | 0.1% |
| OWP International LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 5.75% | 9.45% | 11/20/2025 | 11/20/2030 | 240 | 231 | 238 | 0.1% |
| OWP International LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 5.75% | 9.45% | 11/20/2025 | 11/20/2030 | 1000 | 973 | 990 | 0.2% |
| OWP International LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.75% | 9.45% | 11/20/2025 | 11/20/2030 | 14963 | 14828 | 14814 | 3.4% |
|  |  |  |  |  |  |  |  |  | 17145 | 17167 | 3.9% |
| **Health Care Distributors** | **Health Care Distributors** | **Health Care Distributors** |  |  |  |  |  |  |  |  |  |
| Prime IV Hydration & Wellness Inc. | (6)(7)(8)(15)(29) | First lien senior secured loan | S+ | 6.50% | —% | 11/25/2025 | 11/25/2030 |  | (37) |  | —% |
| Prime IV Hydration & Wellness Inc. | (6)(7)(15)(28) | First lien senior secured loan | S+ | 6.50% | 10.20% | 11/25/2025 | 11/25/2030 | 7980 | 7830 | 7822 | 1.8% |
|  |  |  |  |  |  |  |  |  | 7793 | 7822 | 1.8% |
| **Health Care Equipment & Services** | **Health Care Equipment & Services** | **Health Care Equipment & Services** |  |  |  |  |  |  |  |  |  |
| MSPB MSO, LLC | (6)(7)(23)(29) | First lien senior secured loan | S+ | 6.50% | 10.20% | 11/10/2023 | 11/10/2028 | 9839 | 9822 | 9691 | 2.3% |
| MSPB MSO, LLC | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 6.50% | 10.20% | 11/10/2023 | 11/10/2028 | 5086 | 5042 | 5009 | 1.2% |
| MSPB MSO, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 6.50% | 10.20% | 11/10/2023 | 11/10/2028 | 8370 | 8319 | 8245 | 1.9% |
|  |  |  |  |  |  |  |  |  | 23183 | 22945 | 5.4% |
| **Health Care Providers & Services** | **Health Care Providers & Services** | **Health Care Providers & Services** |  |  |  |  |  |  |  |  |  |
| Ally Medical Holdings, LLC  | (6)(7)(8)(23)(29) | First lien senior secured loan | S+ | 7.00% | —% | 1/15/2026 | 1/15/2030 |  | (47) |  | —% |
| Ally Medical Holdings, LLC  | (6)(7)(23)(28) | First lien senior secured loan | S+ | 7.00% | 10.70% | 1/15/2026 | 1/15/2030 | 14750 | 14613 | 14613 | 3.4% |
| Salt Dental Collective LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 6.75% | 10.52% | 3/20/2023 | 2/15/2028 | 17542 | 17440 | 17542 | 4.1% |
| SMG Operating Company, LLC | (6)(7)(8)(23)(29) | First lien senior secured loan | S+ | 5.00% | —% | 12/5/2025 | 12/5/2030 |  | (5) |  | —% |
| SMG Operating Company, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.00% | 8.67% | 12/5/2025 | 12/5/2030 | 8500 | 8442 | 8442 | 2.0% |
| Straine Dental Management, LLC | (6)(7)(8)(23)(29) | First lien senior secured loan | S+ | 7.24% | 11.00% | 11/25/2025 | 11/25/2030 | 123 | 115 | 123 | —% |
| Straine Dental Management, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 7.42% | 11.19% | 11/25/2025 | 11/25/2030 | 11759 | 11709 | 11759 | 2.7% |
|  |  |  |  |  |  |  |  |  | 52267 | 52479 | 12.2% |
| **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** |  |  |  |  |  |  |  |  |  |
| Aetius Holdings, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 7.00% | 10.96% | 1/25/2023 | 6/30/2026 | 884 | 883 | 884 | 0.2% |
| Dance Nation Holdings LLC | (6)(7)(28) | First lien senior secured loan | S+ | 6.95% | 10.91% | 8/24/2023 | 8/24/2028 | 30438 | 30297 | 29752 | 6.9% |
| Dance Nation Holdings LLC | (6)(7)(8)(30) | First lien senior secured loan | S+ | 6.95% | —% | 8/24/2023 | 8/24/2028 |  | (16) |  | —% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**March 31, 2026**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| Dance Nation Topco LLC |  | Preferred Equity |  |  |  | 8/24/2023 |  | 1652200 | 1652 | 1421 | 0.3% |
| LC Hospitality, LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.45% | 9.15% | 7/25/2024 | 7/25/2031 | 10602 | 10536 | 10430 | 2.4% |
| Liberty Lenwich Holdings LLC | (6)(7)(8)(15)(23)(29) | First lien senior secured loan | S+ | 5.00% | —% | 2/28/2025 | 2/28/2030 |  | (12) |  | —% |
| Liberty Lenwich Holdings LLC | (6)(7)(15)(23)(28) | First lien senior secured loan | S+ | 5.00% | 8.70% | 2/28/2025 | 2/28/2030 | 14405 | 14319 | 14405 | 3.4% |
| Liberty Lenwich Holdings LLC | (6)(7)(8)(15)(23)(30) | First lien senior secured loan | S+ | 5.00% | —% | 2/28/2025 | 2/28/2030 |  | (24) |  | —% |
|  |  |  |  |  |  |  |  |  | 57635 | 56892 | 13.2% |
| **Independent Power & Renewable** | **Independent Power & Renewable** | **Independent Power & Renewable** |  |  |  |  |  |  |  |  |  |
| National Carbon<br>Technologies – California, LLC |  | First lien senior secured loan |  | 12.25% | 12.25% | 5/31/2024 | 5/31/2029 | 14000 | 13999 | 14000 | 3.3% |
| truCurrent LLC | (6)(7)(8)(29) | First lien senior secured loan | S+ | 7.20% | 10.90% | 2/12/2024 | 2/12/2029 | 22000 | 21938 | 22000 | 5.1% |
| truCurrent LLC | (6)(7)(28) | First lien senior secured loan | S+ | 7.20% | 10.90% | 2/12/2024 | 2/12/2029 | 12500 | 12425 | 12500 | 2.9% |
|  |  |  |  |  |  |  |  |  | 48362 | 48500 | 11.3% |
| **Insurance** | **Insurance** | **Insurance** |  |  |  |  |  |  |  |  |  |
| Arrowhead Capital Group LLC | (23) | Preferred equity |  |  | 10.00% | 2/28/2025 |  | 15000000 | 15000 | 15000 | 3.5% |
|  |  |  |  |  |  |  |  |  | 15000 | 15000 | 3.5% |
| **IT Services** | **IT Services** | **IT Services** |  |  |  |  |  |  |  |  |  |
| DRS Imaging Services LLC | (6)(7)(12)(29) | First lien senior secured loan | S+ | 6.25% | 9.95% | 3/28/2025 | 3/28/2030 | 4241 | 4216 | 4203 | 1.0% |
| DRS Imaging Services LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 6.25% | —% | 3/28/2025 | 3/28/2030 |  | (56) |  | —% |
| DRS Imaging Services LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 6.25% | 9.95% | 3/28/2025 | 3/28/2030 | 4602 | 4534 | 4561 | 1.1% |
| Xpect Solutions, LLC | (6)(7)(8)(12)(23)(29) | First lien senior secured loan | S+ | 5.90% | 9.60% | 10/7/2024 | 10/7/2029 | 7406 | 7377 | 7277 | 1.7% |
| Xpect Solutions, LLC | (6)(7)(8)(12)(23)(30) | First lien senior secured loan | S+ | 5.90% | —% | 10/7/2024 | 10/7/2029 |  | (14) |  | —% |
| Xpect Solutions, LLC | (6)(7)(12)(23)(28) | First lien senior secured loan | S+ | 5.90% | 9.60% | 10/7/2024 | 10/7/2029 | 22163 | 22002 | 21775 | 5.1% |
|  |  |  |  |  |  |  |  |  | 38059 | 37816 | 8.9% |
| **Media** | **Media** | **Media** |  |  |  |  |  |  |  |  |  |
| Direct Digital Holdings, LLC | (6)(7)(29) | First lien senior secured loan | S+ | 10.00% | 13.98% | 6/29/2022 | 12/3/2026 | 646 | 646 | 646 | 0.2% |
| Direct Digital Holdings, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 10.00% | 13.98% | 6/29/2022 | 12/3/2026 | 9643 | 6750 | 9643 | 2.2% |
| Direct Digital Holdings, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 10.00% | 13.98% | 6/29/2022 | 12/3/2026 | 510 | 510 | 510 | 0.1% |
| Direct Digital Holdings, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 10.00% | 13.98% | 9/8/2025 | 9/30/2026 | 3989 | 3989 | 3989 | 0.9% |
| Direct Digital Holdings, LLC |  | Preferred Equity |  |  | 10.00% | 8/8/2025 |  | 18513285 | 18513 | 16408 | 3.8% |
| Direct Digital Holdings, LLC | (2) | Preferred Equity |  |  | 10.00% | 10/14/2025 |  | 10475769 | 7152 | 9285 | 2.2% |
|  |  |  |  |  |  |  |  |  | 37560 | 40481 | 9.4% |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |  |
| Akoma Capital Advisory LLC  | (6)(7)(15)(28) | First lien senior secured loan | S+ | 7.00% | 10.70% | 3/31/2026 | 3/31/2029 | 600 | 594 | 594 | 0.1% |
| CentralBDC Enterprises, LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 5.25% | 8.95% | 6/25/2024 | 6/11/2029 | 3158 | 3148 | 3158 | 0.7% |
| CentralBDC Enterprises, LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.25% | 8.95% | 6/25/2024 | 6/11/2029 | 16547 | 16478 | 16547 | 3.9% |
| Flatworld Intermediate Corporation | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 5.45% | —% | 3/25/2025 | 3/25/2030 |  | (60) |  | —% |
| Flatworld Intermediate Corporation | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.45% | 9.15% | 3/25/2025 | 3/25/2030 | 39650 | 39288 | 39650 | 9.2% |
| Oakwell Holding LLC | (15) | Convertible Note |  | 10.00% | 10.00% | 12/23/2024 | 12/31/2028 | 1500 | 1500 | 1500 | 0.3% |
| ZRG Partners LLC | (6)(7)(8)(23)(29) | First lien senior secured loan | S+ | 6.00% | 9.66% | 10/21/2024 | 6/14/2029 | 5430 | 5409 | 5430 | 1.3% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**March 31, 2026**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| ZRG Partners LLC | (6)(7)(8)(23)(30) | First lien senior secured loan | P+ | 5.00% | 11.75% | 10/21/2024 | 6/14/2029 | 2105 | 2092 | 2105 | 0.5% |
| ZRG Partners LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 6.00% | 9.69% | 10/21/2024 | 6/14/2029 | 11241 | 11184 | 11241 | 2.6% |
|  |  |  |  |  |  |  |  |  | 79633 | 80225 | 18.6% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |  |
| Standard Real Estate Investments LP | (6)(7)(29) | First lien senior secured loan | S+ | 8.70% | 12.66% | 10/6/2023 | 10/6/2026 | 2044 | 2044 | 2038 | 0.5% |
| Standard Real Estate Investments LP | (6)(7)(28) | First lien senior secured loan | S+ | 8.70% | 12.66% | 10/6/2023 | 10/6/2026 | 3067 | 3060 | 3056 | 0.7% |
|  |  |  |  |  |  |  |  |  | 5104 | 5094 | 1.2% |
| **Road & Rail** | **Road & Rail** | **Road & Rail** |  |  |  |  |  |  |  |  |  |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(12)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 5/31/2024 | 5/30/2029 | 44302 | 43790 | 36770 | 8.6% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(12)(29) | First lien senior secured loan | S+ | 6.75% | 10.75% | 7/3/2025 | 5/30/2029 | 1077 | 1033 | 894 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(12)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 7/3/2025 | 5/30/2029 | 2187 | 2103 | 1815 | 0.4% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 10/30/2025 | 5/30/2029 | 1611 | 1543 | 1337 | 0.3% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 11/14/2025 | 5/30/2029 | 1072 | 1026 | 889 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 11/26/2025 | 5/30/2029 | 802 | 768 | 666 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 12/10/2025 | 5/30/2029 | 534 | 511 | 443 | 0.1% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 12/19/2025 | 5/30/2029 | 1066 | 1020 | 885 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 12/23/2025 | 5/30/2029 | 1172 | 1121 | 973 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 1/8/2026 | 5/30/2029 | 1329 | 1270 | 1103 | 0.3% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 2/6/2026 | 5/30/2029 | 882 | 842 | 732 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 3/5/2026 | 5/30/2029 | 703 | 670 | 583 | 0.1% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 3/24/2026 | 5/30/2029 | 788 | 751 | 654 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate <br>Capital, LLC) | (12) | Warrants |  |  |  | 5/31/2024 | 5/30/2029 | 166108 |  |  | —% |
|  |  |  |  |  |  |  |  |  | 56448 | 47744 | 11.2% |
| **Specialized Consumer Services** | **Specialized Consumer Services** | **Specialized Consumer Services** |  |  |  |  |  |  |  |  |  |
| Best Friends Pet Care Holdings Inc. | (6)(7)(12)(23)(29) | First lien senior secured loan | S+ | 6.95% | 10.91% | 12/21/2023 | 6/21/2028 | 24325 | 24179 | 24325 | 5.7% |
| Best Friends Pet Care Holdings Inc. | (6)(7)(12)(23)(28) | First lien senior secured loan | S+ | 6.95% | 10.91% | 12/21/2023 | 6/21/2028 | 15658 | 15371 | 15658 | 3.6% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**March 31, 2026**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| Soapy Joe's Midco OC Holdings LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 5.85% | —% | 4/22/2025 | 4/22/2030 |  |  |  | —% |
| Soapy Joe's Midco OC Holdings LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.85% | 9.52% | 4/22/2025 | 4/22/2030 | 15266 | 15204 | 15266 | 3.6% |
|  |  |  |  |  |  |  |  |  | 54754 | 55249 | 12.9% |
| **Transportation Infrastructure** | **Transportation Infrastructure** | **Transportation Infrastructure** |  |  |  |  |  |  |  |  |  |
| Tyler Distribution Centers LLC | (6)(7)(8)(12)(23)(30) | First lien senior secured loan | S+ | 5.03% | —% | 3/12/2025 | 3/12/2030 |  | (48) |  | —% |
| Tyler Distribution Centers LLC | (6)(7)(12)(23)(28) | First lien senior secured loan | S+ | 5.03% | 8.73% | 3/12/2025 | 3/12/2030 | 32000 | 31734 | 31993 | 7.4% |
|  |  |  |  |  |  |  |  |  | 31686 | 31993 | 7.4% |
| **Water Utilities** | **Water Utilities** | **Water Utilities** |  |  |  |  |  |  |  |  |  |
| Puris LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.75% | 9.42% | 2/20/2025 | 6/28/2029 | 590 | 590 | 590 | 0.1% |
| Puris LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.75% | 9.45% | 6/28/2024 | 6/28/2029 | 2799 | 2784 | 2799 | 0.7% |
|  |  |  |  |  |  |  |  |  | 3374 | 3389 | 0.8% |
| **Total non-controlled/non-affiliated investments**  | **Total non-controlled/non-affiliated investments**  | **Total non-controlled/non-affiliated investments**  |  |  |  |  |  |  | **762652** | 757691 | 176.4% |
| **Non-controlled/affiliated investments (10)** | **Non-controlled/affiliated investments (10)** | **Non-controlled/affiliated investments (10)** |  |  |  |  |  |  |  |  |  |
| **Commercial Services & Supplies** | **Commercial Services & Supplies** | **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |
| IVM GK9 Holdings LLC |  | Equity |  |  |  | 10/7/2022 |  | 14969 | 4881 | 5000 | 1.2% |
|  |  |  |  |  |  |  |  |  | 4881 | 5000 | 1.2% |
| **Diversified Consumer Services** | **Diversified Consumer Services** | **Diversified Consumer Services** |  |  |  |  |  |  |  |  |  |
| 3360 Frankford LLC | (17) | Equity |  |  |  | 9/23/2024 |  | 2458671 | 2459 | 2459 | 0.6% |
|  |  |  |  |  |  |  |  |  | 2459 | 2459 | 0.6% |
| **Food Products** | **Food Products** | **Food Products** |  |  |  |  |  |  |  |  |  |
| Patti's Good Life LLC | (31) | Equity |  |  |  | 3/12/2026 |  | 15 | 69 | 70 | —% |
| Patti's Good Life LLC | (31) | Preferred Equity |  |  | 12.00% | 3/12/2026 |  | 70 | 3396 | 3430 | 0.8% |
|  |  |  |  |  |  |  |  |  | 3465 | 3500 | 0.8% |
| **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** |  |  |  |  |  |  |  |  |  |
| Liberty Top Holdings, LLC | (15)(18) | Equity |  |  |  | 2/28/2025 |  | 3000000 | 3000 | 3000 | 0.7% |
|  |  |  |  |  |  |  |  |  | 3000 | 3000 | 0.7% |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |  |
| Sparrow Rock, Inc. | (15)(25) | Preferred Equity |  |  |  | 11/12/2025 |  | 2614379 | 2000 | 2000 | 0.5% |
|  |  |  |  |  |  |  |  |  | 2000 | 2000 | 0.5% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |  |
| NW1LS CO-INVEST LP | (8) | Equity |  |  |  | 4/10/2025 |  | 10000000 | 10293 | 9707 | 2.3% |
|  |  |  |  |  |  |  |  |  | 10293 | 9707 | 2.3% |
| **Total non-controlled/affiliated investments** | **Total non-controlled/affiliated investments** | **Total non-controlled/affiliated investments** |  |  |  |  |  |  | 26098 | 25666 | 6.1% |
| **Controlled/affiliated investments (10)** | **Controlled/affiliated investments (10)** | **Controlled/affiliated investments (10)** |  |  |  |  |  |  |  |  |  |
| **Diversified Financial Services** | **Diversified Financial Services** | **Diversified Financial Services** |  |  |  |  |  |  |  |  |  |
| Lafayette Square SBLC, LLC | (26) | Equity |  |  |  | 12/30/2025 |  | 100 | 7981 | 7945 | 1.8% |
|  |  |  |  |  |  |  |  |  | 7981 | 7945 | 1.8% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**March 31, 2026**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference**<br>**Rate and** <br>**Spread** | **Reference**<br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Diversified Real Estate Activities** | **Diversified Real Estate Activities** | **Diversified Real Estate Activities** |  |  |  |  |  |  |  |  |  |
| Lafayette Square Mortgage Solutions, <br>LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 6.50% | —% | 11/6/2025 | 11/6/2030 |  |  |  | —% |
| Lafayette Square Mortgage Solutions, <br>LLC | (8)(24) | Equity |  |  |  | 11/6/2025 |  | 100 | 1150 | 1150 | 0.3% |
| LSA Affordable Housing LP | (8)(27) | Equity |  |  |  | 10/20/2025 |  | 100 | 4043 | 3986 | 1.0% |
|  |  |  |  |  |  |  |  |  | 5193 | 5136 | 1.3% |
| **Insurance** | **Insurance** | **Insurance** |  |  |  |  |  |  |  |  |  |
| GELDO Inc. | (15)(19) | Preferred Equity |  |  |  | 6/17/2025 |  | 3857032 | $3000 | $3000 | 0.7% |
|  |  |  |  |  |  |  |  |  | 3000 | 3000 | 0.7% |
| **IT Services** | **IT Services** | **IT Services** |  |  |  |  |  |  |  |  |  |
| Lafayette Square Technologies, LLC | (20) | Equity |  |  |  | 8/4/2025 |  | 100 | 4500 | 4500 | 1.0% |
|  |  |  |  |  |  |  |  |  | 4500 | 4500 | 1.0% |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |  |
| Studio Lafayette, LLC | (21)(33) | Equity |  |  |  | 8/4/2025 |  | 100 | 1500 | 1500 | 0.3% |
| Worker Solutions LLC | (8)(16) | Equity |  |  |  | 12/30/2024 |  | 100 | 1850 | 1850 | 0.4% |
|  |  |  |  |  |  |  |  |  | 3350 | 3350 | 0.7% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |  |
| Neighborhood Grocery Catalyst Fund <br>LLC | (8)(14) | Equity |  |  |  | 12/20/2024 |  | 100 | 7783 | 7672 | 1.8% |
| Truly Redlands LLC | (22) | Equity |  |  |  | 9/30/2025 |  | 4500 | 4500 | 4500 | 1.0% |
| SHaD Momentum LLC | (32) | Equity |  |  |  | 3/30/2026 |  | 26000 | 2600 | 2600 | 0.6% |
|  |  |  |  |  |  |  |  |  | 14883 | 14772 | 3.4% |
| **Total controlled/affiliated investments** | **Total controlled/affiliated investments** | **Total controlled/affiliated investments** |  |  |  |  |  |  | 38907 | 38703 | 8.9% |
| **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** |  |  |  |  |  |  | $827657 | $822060 | 191.4% |
| **Cash and cash equivalents** | **Cash and cash equivalents** | **Cash and cash equivalents** |  |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | (9)(23) | Money market fund |  |  |  |  |  | 193198 | 193198 | 193198 | 45.0% |
| **Total cash and cash equivalents** | **Total cash and cash equivalents** | **Total cash and cash equivalents** |  |  |  |  |  |  | 193198 | 193198 | 45.0% |
| **Total Portfolio Investments, Cash and Cash Equivalents** | **Total Portfolio Investments, Cash and Cash Equivalents** | **Total Portfolio Investments, Cash and Cash Equivalents** |  |  |  |  |  |  | $1020855 | $1015258 | 236.4% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**March 31, 2026**

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

(2) Dividends on the Series A Preferred Stock are payable in-kind (PIK). Pursuant to the Ninth Amendment, the issuer has the option to pay up to 50% of dividends in cash; however, no cash payments have been made to date.

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

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

(5) Percentage is based on net assets of $429,585 as of March 31, 2026.

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

(7) Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to the Secured Overnight Financing Rate ("SOFR" or "S") or an alternate base rate (commonly based on the Federal Funds Rate or the U.S. Prime Rate), which generally resets quarterly. For each such loan, the Company has indicated the reference rate used and provided the spread and the interest rate in effect as of each investment's most recent reset date prior to March 31, 2026. As of March 31, 2026, the reference rates for our variable rate loans were the 180-day SOFR at 3.70%, 90-day SOFR at 3.68%, and 30-day SOFR at 3.66%.

(8) Position or portion thereof is an unfunded loan or equity commitment, and no interest is being earned on the unfunded portion, although the investment may earn unused commitment fees. Negative cost and fair value, if any, results from unamortized fees, which are capitalized to the cost of the investment. The unfunded commitment may be subject to a commitment termination date that may expire prior to the maturity date stated. See below for more information on the Company's unfunded commitments as of March 31, 2026:

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**March 31, 2026**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments** | **Unused Fee Rate** | **Commitment Type** | **Commitment Expiration Date** | **Unfunded Commitment** |
| **First Lien Debt** |  |  |  |  |
| Ally Medical Holdings, LLC  | 0.50% | Delayed Draw Term Loan | 1/15/2028 | 10000 |
| C Speed LLC | 0.50% | Revolver | 10/1/2029 | 800 |
| Core Capital Partners II-S LP | —% | Revolver | 10/11/2027 | 6754 |
| Dance Nation Holdings LLC | 0.50% | Revolver | 8/24/2028 | 4131 |
| DRS Imaging Services LLC | 0.50% | Revolver | 3/28/2030 | 4000 |
| Electro Technical Industries, LLC | 0.50% | Revolver | 3/31/2030 | 2222 |
| Flatworld Intermediate Corporation | 0.50% | Revolver | 3/25/2030 | 7500 |
| Genuine Food Lab LLC | 0.75% | Delayed Draw Term Loan | 6/6/2028 | 5000 |
| Lafayette Square Mortgage Solutions, LLC | —% | Delayed Draw Term Loan | 11/6/2030 | 10000 |
| Liberty Lenwich Holdings LLC | 0.50% | Revolver | 2/28/2030 | 3000 |
| Liberty Lenwich Holdings LLC | 0.50% | Delayed Draw Term Loan | 2/28/2027 | 3000 |
| MSPB MSO, LLC | 0.38% | Revolver | 11/10/2028 | 3390 |
| OWP International LLC | 0.50% | Delayed Draw Term Loan | 11/20/2027 | 1759 |
| OWP International LLC | 0.50% | Revolver | 11/20/2030 | 2000 |
| Prime IV Hydration & Wellness Inc. | 0.50% | Delayed Draw Term Loan | 11/25/2026 | 4000 |
| Rotolo Consultants, Inc. | 0.50% | Revolver | 1/31/2031 | 18601 |
| SMG Operating Company, LLC | 1.00% | Delayed Draw Term Loan | 12/5/2027 | 1500 |
| Soapy Joe's Midco OC Holdings LLC | 0.45% | Delayed Draw Term Loan | 10/22/2026 | 5000 |
| Straine Dental Management, LLC | 0.25% | Delayed Draw Term Loan | 5/25/2027 | 3618 |
| Synergi, LLC | 0.50% | Revolver | 12/19/2027 | 3525 |
| TEC Services LLC | 1.00% | Delayed Draw Term Loan | 7/1/2026 | 3000 |
| TEC Services LLC | 0.50% | Revolver | 12/31/2029 | 2000 |
| Trilon Group, LLC | 0.50% | Revolver | 5/27/2029 | 719 |
| truCurrent LLC | 0.50% | Delayed Draw Term Loan | 12/12/2026 | 3000 |
| Tyler Distribution Centers LLC | 0.50% | Revolver | 3/12/2030 | 6000 |
| Xpect Solutions, LLC | 0.50% | Delayed Draw Term Loan | 10/7/2026 | 2500 |
| Xpect Solutions, LLC | 0.50% | Revolver | 10/7/2029 | 2000 |
| ZRG Partners LLC | 1.50% | Delayed Draw Term Loan | 6/14/2026 | 556 |
| ZRG Partners LLC | 0.50% | Revolver | 6/14/2029 | 421 |
| **Equity** |  |  |  |  |
| Lafayette Square Mortgage Solutions, LLC | —% | Equity |  | 18850 |
| LSA Affordable Housing LP | —% | Equity |  | 1014 |
| Neighborhood Grocery Catalyst Fund LLC | —% | Equity |  | 4828 |
| NW1LS CO-INVEST LP | —% | Equity |  | 293 |
| Worker Solutions, LLC | —% | Equity |  | 1650 |
|  |  |  |  | $146631 |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**March 31, 2026**

(9) Cash and cash equivalents balance represents amounts held in the interest-bearing money market fund - Goldman Sachs Financial Square Government Fund (FGTXX). As of March 31, 2026, $193,198 was held in FGTXX and had an average one-year yield of 4.03%.

(10) Under the 1940 Act, the Company would be deemed to "control" a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the portfolio company. Under the 1940 Act, the Company would be deemed an "affiliated person" of a portfolio company if the Company owns 5% or more of the portfolio company's outstanding voting securities. As of March 31, 2026, the Company's non-controlled/affiliated investments and controlled/affiliated investments were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Non-controlled/affiliated investments** | **Fair Value as of** <br>**December 31, 2025**<br>| **Gross** <br>**Additions**<br>| **Gross** <br>**Reductions**<br>| **Change in Unrealized** <br>**Gains (Losses)**<br>| **Fair Value as of** <br>**March 31, 2026**<br>| **Investment**<br>**Income**<br>|
| 3360 Frankford LLC | $2459 | $— | $— | $— | $2459 | $— |
| IVM GK9 Holdings LLC | 5000 |  |  |  | 5000 |  |
| Liberty Top Holdings, LLC | 3000 |  |  |  | 3000 | 70 |
| NW1LS CO-INVEST LP | 9668 | 190 |  | (151) | 9707 |  |
| Patti's Good Life LLC |  | 69 |  | 1 | 70 |  |
| Patti's Good Life LLC |  | 3396 |  | 34 | 3430 | 22 |
| Sparrow Rock, Inc. | 2000 |  |  |  | 2000 |  |
| **Non-controlled/affiliated investments** | $22127 | $3655 | $— | $(116) | $25666 | $92 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Controlled/affiliated investments** | **Fair Value as of** <br>**December 31, 2025**<br>| **Gross** <br>**Additions**<br>| **Gross** <br>**Reductions**<br>| **Change in Unrealized** <br>**Gains (Losses)**<br>| **Fair Value as of** <br>**March 31, 2026**<br>| **Investment**<br>**Income**<br>|
| GELDO Inc. | $3000 | $— | $— | $— | $3000 | $— |
| Lafayette Square Mortgage Solutions, LLC | 300 | 850 |  |  | 1150 |  |
| Lafayette Square SBLC, LLC | 5445 | 2536 |  | (36) | 7945 |  |
| Lafayette Square Technologies, LLC | 3000 | 1500 |  |  | 4500 |  |
| LSA Affordable Housing LP | 3986 |  |  |  | 3986 |  |
| Neighborhood Grocery Catalyst Fund LLC | 7672 |  |  |  | 7672 | 31 |
| SHaD Momentum LLC |  | 2600 |  |  | 2600 |  |
| Studio Lafayette, LLC | 1000 | 500 |  |  | 1500 |  |
| Truly Redlands LLC | 4500 |  |  |  | 4500 |  |
| Worker Solutions LLC | 1850 |  |  |  | 1850 |  |
| **Controlled/affiliated investments** | $30753 | $7986 | $— | $(36) | $38703 | $31 |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**March 31, 2026**

---

| | |
|:---|:---|
| (11) | Securities exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), and may be deemed to be "restricted securities." Except as noted by this footnote, all of the instruments <br>on this table are subject to restrictions on resale.  |
| (12) | Investments, or portion thereof, held by the SBIC subsidiary (as defined in Note 1). |
| (13) | Industries are classified by The Global Industry Classification Standard ("GICS"). |
| (14) | The Company owns 31.25% of the equity interests in Neighborhood Grocery Catalyst Fund LLC. |
| (15) | Investments, or portion thereof, held by the SSBIC subsidiary (as defined in Note 1). |
| (16) | The Company owns 100.00% of the equity interests in Worker Solutions, LLC. |
| (17) | The Company owns a 66.25% of the equity interests in 3360 Frankford LLC. |
| (18) | The Company owns a 7.02% share in Liberty Top Holdings, LLC. |
| (19) | The Company owns a 27.00% share in GELDO Inc. |
| (20) | The Company owns a 100.00% share in Lafayette Square Technologies, LLC. |
| (21) | The Company owns a 100.00% share in Studio Lafayette, LLC. |
| (22) | The Company owns a 47.37% share in Truly Redlands LLC. |
| (23) | Assets are pledged as collateral for the ING Credit Facility. See Note 5 "Debt". |
| (24) | The Company owns a 100.00% share in Lafayette Square Mortgage Solutions, LLC. |
| (25) | The Company owns a 20.00% share in Sparrow Rock, Inc. |
| (26) | The Company owns a 100.00% share in Lafayette Square SBLC, LLC. |
| (27) | The Company owns a 90.89% share in LSA Affordable Housing LP. |
| (28) | Represents investment in a Term Loan.  |
| (29) | Represents investment in a Delayed Draw Term Loan.  |
| (30) | Represents investment in a Revolving Facility. |
| (31) | The Company owns a 20.00% share in Patti's Good Life LLC. |
| (32) | The Company owns a 60.20% share in SHaD Momentum LLC. |
| (33) | Studio Lafayette, LLC has been reclassified from Human Resource & Employment Services to Professional Services in the current-year Consolidated Schedule of Investments. The industry classification <br>presented in the comparative Schedule of Investments reflects the classification in effect at the time of original reporting and has not been restated to reflect this reclassification. |
| The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. |

---

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments**

**December 31, 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Non-controlled/non-affiliated investments** | **Non-controlled/non-affiliated investments** | **Non-controlled/non-affiliated investments** |  |  |  |  |  |  |  |  |  |
| **Aerospace & Defense** | **Aerospace & Defense** | **Aerospace & Defense** |  |  |  |  |  |  |  |  |  |
| C Speed LLC | (6)(7)(8)(12)(23)(30) | First lien senior secured loan | S+ | 6.00% | 9.67% | 10/1/2024 | 10/1/2029 | $4700 | $4662 | $4630 | 1.1% |
| C Speed LLC | (6)(7)(28) | First lien senior secured loan | S+ | 6.00% | 9.67% | 10/1/2024 | 10/1/2029 | 15109 | 14995 | 14882 | 3.6% |
|  |  |  |  |  |  |  |  |  | 19657 | 19512 | 4.7% |
| **Commercial Services & Supplies** | **Commercial Services & Supplies** | **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |
| Ironhorse Purchaser, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.25% | 8.97% | 12/21/2023 | 9/30/2027 | 9773 | 9675 | 9773 | 2.4% |
| Rotolo Consultants, Inc. | (6)(7)(23)(29) | First lien senior secured loan | S+ | 5.50% | 9.18% | 1/31/2025 | 1/31/2031 | 5246 | 5230 | 5246 | 1.3% |
| Rotolo Consultants, Inc. | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 5.50% | 9.18% | 1/31/2025 | 1/31/2031 | 3528 | 3478 | 3528 | 0.9% |
| Rotolo Consultants, Inc. | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.50% | 9.18% | 1/31/2025 | 1/31/2031 | 20080 | 20062 | 20080 | 4.9% |
| TEC Services LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 5.50% | —% | 1/09/2025 | 12/31/2029 |  |  |  | —% |
| TEC Services LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 5.50% | —% | 1/09/2025 | 12/31/2029 |  |  |  | —% |
| TEC Services LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.50% | 9.27% | 1/09/2025 | 12/31/2029 | 9900 | 9900 | 9900 | 2.4% |
| Zero Waste Recycling LLC | (6)(7)(23)(29) | First lien senior secured loan | S+ | 6.45% | 10.52% | 6/29/2022 | 5/15/2026 | 4927 | 5068 | 4927 | 1.2% |
| Zero Waste Recycling LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 6.45% | 10.53% | 6/29/2022 | 5/15/2026 | 12590 | 12590 | 12590 | 3.1% |
| ZWR Holdings, Inc. |  | Subordinated debt | 14.00% (Inc. <br>10.00% PIK) | 14.00% (Inc. <br>10.00% PIK) | 14.00% | 8/16/2021 | 2/12/2027 | 1883 | 1883 | 1883 | 0.5% |
| ZWR Holdings, Inc. |  | Warrants |  |  |  | 8/16/2021 | 2/16/2027 | 24953 |  |  | —% |
|  |  |  |  |  |  |  |  |  | 67886 | 67927 | 16.7% |
| **Construction & Engineering** | **Construction & Engineering** | **Construction & Engineering** |  |  |  |  |  |  |  |  |  |
| Ickler Electric Corporation | (6)(7)(12)(23)(28) | First lien senior secured loan | S+ | 6.50% | 10.17% | 4/17/2025 | 4/17/2030 | 38308 | 37982 | 38273 | 9.3% |
| Ickler Electric Corporation | (12)(23) | Subordinated debt |  | 14.00% | 14.00% | 4/17/2025 | 10/17/2030 | 1557 | 1542 | 1554 | 0.4% |
| Ickler Electric Corporation | (12) | Warrants |  |  |  | 4/17/2025 | 4/17/2030 | 37608 |  |  | —% |
| Synergi, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 7.45% | 11.39% | 12/19/2022 | 12/17/2027 | 15649 | 15582 | 15414 | 3.7% |
| Synergi, LLC | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 7.45% | —% | 12/19/2022 | 12/17/2027 |  | (15) |  | —% |
| Trilon Group, LLC | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 4.75% | —% | 3/24/2023 | 5/25/2029 |  | (6) |  | —% |
|  |  |  |  |  |  |  |  |  | 55085 | 55241 | 13.4% |
| **Diversified Consumer Services** | **Diversified Consumer Services** | **Diversified Consumer Services** |  |  |  |  |  |  |  |  |  |
| Med Learning Group, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.75% | 9.42% | 3/26/2024 | 12/30/2027 | 15412 | 15325 | 15412 | 3.7% |
| Med Learning Group, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 5.75% | —% | 3/26/2024 | 12/30/2027 |  |  |  | —% |
| Med Learning Group, LLC | (6)(7)(23)(29) | First lien senior secured loan | S+ | 5.75% | 9.42% | 3/26/2024 | 12/30/2027 | 4256 | 4244 | 4256 | 1.0% |
| Med Learning Group, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 5.75% | —% | 3/26/2024 | 12/30/2027 |  |  |  | —% |
|  |  |  |  |  |  |  |  |  | 19569 | 19668 | 4.9% |
| **Diversified Financial Services** | **Diversified Financial Services** | **Diversified Financial Services** |  |  |  |  |  |  |  |  |  |
| Core Capital Partners II-S LP | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 7.50% | 11.17% | 10/11/2024 | 10/11/2027 | 4343 | 4270 | 4343 | 1.1% |
| Core Capital Partners II-S LP | (6)(7)(23)(28) | First lien senior secured loan | S+ | 7.50% | 11.17% | 10/11/2024 | 10/11/2027 | 28000 | 27817 | 28000 | 6.8% |
|  |  |  |  |  |  |  |  |  | 32087 | 32343 | 7.9% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Diversified Telecommunication Services** | **Diversified Telecommunication Services** | **Diversified Telecommunication Services** |  |  |  |  |  |  |  |  |  |
| Johnsoncomm LLC | (6)(7)(15)(23)(28) | First lien senior secured loan | S+ | 6.90% | 10.58% | 1/31/2025 | 1/31/2030 | 16000 | 15872 | 15870 | 3.9% |
|  |  |  |  |  |  |  |  |  | 15872 | 15870 | 3.9% |
| **Electrical Equipment** | **Electrical Equipment** | **Electrical Equipment** |  |  |  |  |  |  |  |  |  |
| Electro Technical Industries, LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 5.50% | —% | 3/31/2025 | 3/31/2030 |  | (14) |  | —% |
| Electro Technical Industries, LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.50% | 9.22% | 3/31/2025 | 3/31/2030 | 12538 | 12455 | 12538 | 3.0% |
|  |  |  |  |  |  |  |  |  | 12441 | 12538 | 3.0% |
| **Food & Staples Retailing** | **Food & Staples Retailing** | **Food & Staples Retailing** |  |  |  |  |  |  |  |  |  |
| Genuine Food Lab LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 8.25% | —% | 6/06/2025 | 6/06/2030 |  | (20) |  | —% |
| Genuine Food Lab LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 8.25% | 11.93% | 6/06/2025 | 6/06/2030 | 10000 | 9908 | 9986 | 2.4% |
|  |  |  |  |  |  |  |  |  | 9888 | 9986 | 2.4% |
| **Food Products** | **Food Products** | **Food Products** |  |  |  |  |  |  |  |  |  |
| Capital City LLC | (6)(7)(8)(15)(29) | First lien senior secured loan | S+ | 8.00% | 11.67% | 9/20/2024 | 9/20/2029 | 640 | 622 | 634 | 0.2% |
| Capital City LLC | (6)(7)(15)(28) | First lien senior secured loan | S+ | 8.00% | 11.67% | 9/20/2024 | 9/20/2029 | 494 | 490 | 490 | 0.1% |
| OWP International LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 5.75% | —% | 11/20/2025 | 11/20/2030 |  | (10) |  | —% |
| OWP International LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 5.75% | 9.43% | 11/20/2025 | 11/20/2030 | 1000 | 971 | 990 | 0.2% |
| OWP International LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.75% | 9.43% | 11/20/2025 | 11/20/2030 | 15000 | 14851 | 14852 | 3.6% |
|  |  |  |  |  |  |  |  |  | 16924 | 16966 | 4.1% |
| **Gas Utilities** | **Gas Utilities** | **Gas Utilities** |  |  |  |  |  |  |  |  |  |
| TCFIII Owl Buyer LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.50% | 9.34% | 1/31/2023 | 4/17/2026 | 10675 | 10661 | 10675 | 2.6% |
|  |  |  |  |  |  |  |  |  | 10661 | 10675 | 2.6% |
| **Health Care Distributors** | **Health Care Distributors** | **Health Care Distributors** |  |  |  |  |  |  |  |  |  |
| Prime IV Hydration & Wellness Inc. | (6)(7)(8)(15)(29) | First lien senior secured loan | S+ | 6.50% | —% | 11/25/2025 | 11/25/2030 |  | (39) |  | —% |
| Prime IV Hydration & Wellness Inc. | (6)(7)(15)(28) | First lien senior secured loan | S+ | 6.50% | 10.17% | 11/25/2025 | 11/25/2030 | 8000 | 7841 | 7842 | 1.9% |
|  |  |  |  |  |  |  |  |  | 7802 | 7842 | 1.9% |
| **Health Care Equipment & Services** | **Health Care Equipment & Services** | **Health Care Equipment & Services** |  |  |  |  |  |  |  |  |  |
| MSPB MSO, LLC | (6)(7)(23)(29) | First lien senior secured loan | S+ | 6.50% | 10.17% | 11/10/2023 | 11/10/2028 | 9863 | 9841 | 9715 | 2.4% |
| MSPB MSO, LLC | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 6.50% | 10.17% | 11/10/2023 | 11/10/2028 | 5086 | 5036 | 5009 | 1.2% |
| MSPB MSO, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 6.50% | 10.17% | 11/10/2023 | 11/10/2028 | 8391 | 8333 | 8266 | 2.0% |
|  |  |  |  |  |  |  |  |  | 23210 | 22990 | 5.6% |
| **Health Care Providers & Services** | **Health Care Providers & Services** | **Health Care Providers & Services** |  |  |  |  |  |  |  |  |  |
| Salt Dental Collective LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 6.75% | 10.57% | 3/20/2023 | 2/15/2028 | 17587 | 17467 | 17587 | 4.4% |
| SMG Operating Company, LLC | (6)(7)(8)(23)(29) | First lien senior secured loan | S+ | 5.00% | —% | 12/5/2025 | 12/5/2027 |  | (5) |  | —% |
| SMG Operating Company, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.00% | 8.87% | 12/5/2025 | 12/5/2030 | 8500 | 8436 | 8436 | 2.1% |
| Straine Dental Management, LLC | (6)(7)(8)(23)(29) | First lien senior secured loan | S+ | 7.42% | —% | 11/25/2025 | 11/25/2030 |  | (9) |  | —% |
| Straine Dental Management, LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 7.42% | 11.24% | 11/25/2025 | 11/25/2030 | 11759 | 11700 | 11700 | 2.8% |
|  |  |  |  |  |  |  |  |  | 37589 | 37723 | 9.3% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** |  |  |  |  |  |  |  |  |  |
| Aetius Holdings, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 7.00% | 10.93% | 1/25/2023 | 3/31/2026 | 909 | 907 | 907 | 0.2% |
| Dance Nation Holdings LLC | (6)(7)(28) | First lien senior secured loan | S+ | 6.95% | 10.89% | 8/24/2023 | 8/24/2028 | 31625 | 31443 | 31625 | 7.8% |
| Dance Nation Holdings LLC | (6)(7)(30) | First lien senior secured loan | S+ | 6.95% | 10.89% | 8/24/2023 | 8/24/2028 | 4131 | 4112 | 4131 | 1.0% |
| Dance Nation Topco LLC |  | Preferred Equity |  |  |  | 8/24/2023 |  | 1652200 | 1652 | 1652 | 0.4% |
| LC Hospitality, LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.45% | 9.12% | 7/25/2024 | 7/25/2031 | 10387 | 10316 | 10218 | 2.5% |
| Liberty Lenwich Holdings LLC | (6)(7)(8)(15)(23)(29) | First lien senior secured loan | S+ | 5.00% | —% | 2/28/2025 | 2/28/2030 |  | (13) |  | —% |
| Liberty Lenwich Holdings LLC | (6)(7)(15)(23)(28) | First lien senior secured loan | S+ | 5.00% | 8.85% | 2/28/2025 | 2/28/2030 | 14441 | 14348 | 14441 | 3.5% |
| Liberty Lenwich Holdings LLC | (6)(7)(8)(15)(23)(30) | First lien senior secured loan | S+ | 5.00% | —% | 2/28/2025 | 2/28/2030 |  | (25) |  | —% |
|  |  |  |  |  |  |  |  |  | 62740 | 62974 | 15.4% |
| **Independent Power & Renewable** | **Independent Power & Renewable** | **Independent Power & Renewable** |  |  |  |  |  |  |  |  |  |
| National Carbon<br>Technologies – California, LLC |  | First lien senior secured loan |  | 12.25% | 12.25% | 5/31/2024 | 5/31/2029 | 14000 | 13999 | 13999 | 3.4% |
| truCurrent LLC | (6)(7)(8)(29) | First lien senior secured loan | S+ | 7.20% | 10.88% | 2/12/2024 | 2/12/2029 | 10000 | 9923 | 10000 | 2.4% |
| truCurrent LLC | (6)(7)(28) | First lien senior secured loan | S+ | 7.20% | 10.88% | 2/12/2024 | 2/12/2029 | 12500 | 12416 | 12500 | 3.0% |
|  |  |  |  |  |  |  |  |  | 36338 | 36499 | 8.8% |
| **Insurance** | **Insurance** | **Insurance** |  |  |  |  |  |  |  |  |  |
| Arrowhead Capital Group LLC | (23) | Preferred equity |  |  |  | 2/28/2025 |  | 15000000 | 15000 | 15000 | 3.6% |
|  |  |  |  |  |  |  |  |  | 15000 | 15000 | 3.6% |
| **IT Services** | **IT Services** | **IT Services** |  |  |  |  |  |  |  |  |  |
| DRS Imaging Services LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 6.25% | —% | 3/28/2025 | 3/28/2030 |  | (27) |  | —% |
| DRS Imaging Services LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 6.25% | —% | 3/28/2025 | 3/28/2030 |  | (59) |  | —% |
| DRS Imaging Services LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 6.25% | 9.92% | 3/28/2025 | 3/28/2030 | 4614 | 4541 | 4578 | 1.1% |
| Xpect Solutions, LLC | (6)(7)(8)(12)(23)(29) | First lien senior secured loan | S+ | 5.75% | 9.42% | 10/7/2024 | 10/7/2029 | 7425 | 7391 | 7425 | 1.8% |
| Xpect Solutions, LLC | (6)(7)(8)(12)(23)(30) | First lien senior secured loan | S+ | 5.75% | —% | 10/7/2024 | 10/7/2029 |  | (15) |  | —% |
| Xpect Solutions, LLC | (6)(7)(12)(23)(28) | First lien senior secured loan | S+ | 5.75% | 9.42% | 10/7/2024 | 10/7/2029 | 22219 | 22044 | 22219 | 5.4% |
|  |  |  |  |  |  |  |  |  | 33875 | 34222 | 8.3% |
| **Media** | **Media** | **Media** |  |  |  |  |  |  |  |  |  |
| Direct Digital Holdings, LLC | (6)(7)(29) | First lien senior secured loan | S+ | 10.00% | 13.98% | 6/29/2022 | 12/3/2026 | 624 | 624 | 624 | 0.2% |
| Direct Digital Holdings, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 10.00% | 13.98% | 6/29/2022 | 12/3/2026 | 9315 | 5839 | 9315 | 2.3% |
| Direct Digital Holdings, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 10.00% | 13.98% | 6/29/2022 | 12/3/2026 | 493 | 493 | 493 | 0.1% |
| Direct Digital Holdings, LLC | (6)(7)(28) | First lien senior secured loan | S+ | 10.00% | 13.98% | 9/8/2025 | 9/30/2026 | 3853 | 3849 | 3853 | 0.9% |
| Direct Digital Holdings, LLC |  | Preferred Equity |  |  |  | 8/8/2025 |  | 18058066 | 18058 | 16005 | 3.9% |
| Direct Digital Holdings, LLC |  | Preferred Equity |  |  |  | 10/14/2025 |  | 10218183 | 6894 | 9056 | 2.2% |
|  |  |  |  |  |  |  |  |  | 35757 | 39346 | 9.6% |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |  |
| CentralBDC Enterprises, LLC | (6)(7)(8)(12)(30) | First lien senior secured loan | S+ | 5.25% | 8.93% | 6/25/2024 | 6/11/2029 | 2863 | 2853 | 2863 | 0.7% |
| CentralBDC Enterprises, LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.25% | 8.92% | 6/25/2024 | 6/11/2029 | 16589 | 16516 | 16589 | 4.0% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| Flatworld Intermediate Corporation | (6)(7)(8)(23)(30) | First lien senior secured loan | S+ | 5.50% | 9.18% | 3/25/2025 | 3/25/2030 | 300 | 236 | 300 | 0.1% |
| Flatworld Intermediate Corporation | (6)(7)(23)(28) | First lien senior secured loan | S+ | 5.50% | 9.18% | 3/25/2025 | 3/25/2030 | 39750 | 39386 | 39750 | 9.7% |
| Oakwell Holding LLC | (15) | Convertible Note |  | 10.00% | 10.00% | 12/23/2024 | 12/31/2028 | 1500 | 1500 | 1500 | 0.4% |
| ZRG Partners LLC | (6)(7)(8)(23)(29) | First lien senior secured loan | S+ | 6.00% | 9.67% | 10/21/2024 | 6/14/2029 | 4431 | 4409 | 4431 | 1.1% |
| ZRG Partners LLC | (6)(7)(8)(23)(30) | First lien senior secured loan | P+ | 5.00% | 11.75% | 10/21/2024 | 6/14/2029 | 1600 | 1585 | 1600 | 0.4% |
| ZRG Partners LLC | (6)(7)(23)(28) | First lien senior secured loan | S+ | 6.00% | 9.73% | 10/21/2024 | 6/14/2029 | 11273 | 11208 | 11273 | 2.7% |
|  |  |  |  |  |  |  |  |  | 77693 | 78306 | 19.1% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |  |
| Standard Real Estate Investments LP | (6)(7)(29) | First lien senior secured loan | S+ | 8.70% | 12.64% | 10/6/2023 | 10/6/2026 | 2044 | 2044 | 2038 | 0.5% |
| Standard Real Estate Investments LP | (6)(7)(28) | First lien senior secured loan | S+ | 8.70% | 12.64% | 10/6/2023 | 10/6/2026 | 3067 | 3056 | 3056 | 0.7% |
|  |  |  |  |  |  |  |  |  | 5100 | 5094 | 1.2% |
| **Road & Rail** | **Road & Rail** | **Road & Rail** |  |  |  |  |  |  |  |  |  |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(12)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 5/31/2024 | 5/30/2029 | 43712 | 43155 | 37155 | 9.0% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(12)(29) | First lien senior secured loan | S+ | 6.75% | 10.75% | 7/3/2025 | 5/30/2029 | 1063 | 1015 | 903 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(12)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 7/3/2025 | 5/30/2029 | 2158 | 2068 | 1834 | 0.4% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (12) | Warrants |  |  |  | 5/31/2024 | 5/30/2029 | 166108 |  |  | 0.3% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 10/30/2025 | 5/30/2029 | 1590 | 1517 | 1351 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 11/14/2025 | 5/30/2029 | 1057 | 1009 | 899 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 11/26/2025 | 5/30/2029 | 792 | 755 | 673 | 0.1% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 12/10/2025 | 5/30/2029 | 527 | 502 | 448 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 12/19/2025 | 5/30/2029 | 1052 | 1002 | 894 | 0.2% |
| 160 Driving Academy (a/k/a Rock Gate Capital, <br>LLC) | (6)(7)(28) | First lien senior secured loan | S+ | 6.75% | 10.75% | 12/23/2025 | 5/30/2029 | 1156 | 1101 | 983 | —% |
|  |  |  |  |  |  |  |  |  | 52124 | 45140 | 10.8% |
| **Specialized Consumer Services** | **Specialized Consumer Services** | **Specialized Consumer Services** |  |  |  |  |  |  |  |  |  |
| Best Friends Pet Care Holdings Inc. | (6)(7)(12)(23)(29) | First lien senior secured loan | S+ | 6.95% | 10.88% | 12/21/2023 | 6/21/2028 | 24386 | 24217 | 24386 | 5.9% |
| Best Friends Pet Care Holdings Inc. | (6)(7)(12)(23)(28) | First lien senior secured loan | S+ | 6.95% | 10.88% | 12/21/2023 | 6/21/2028 | 15498 | 15384 | 15498 | 3.8% |
| Soapy Joe's Midco OC Holdings LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 5.85% | —% | 4/22/2025 | 4/22/2030 |  |  |  | —% |
| Soapy Joe's Midco OC Holdings LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.85% | 9.57% | 4/22/2025 | 4/22/2030 | 15196 | 15126 | 15196 | 3.7% |
|  |  |  |  |  |  |  |  |  | 54727 | 55080 | 13.4% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Transportation Infrastructure** | **Transportation Infrastructure** | **Transportation Infrastructure** |  |  |  |  |  |  |  |  |  |
| Tyler Distribution Centers LLC | (6)(7)(8)(12)(23)(30) | First lien senior secured loan | S+ | 5.03% | —% | 3/12/2025 | 3/12/2030 |  | (51) |  | —% |
| Tyler Distribution Centers LLC | (6)(7)(12)(23)(28) | First lien senior secured loan | S+ | 5.03% | 8.71% | 3/12/2025 | 3/12/2030 | 32000 | 31722 | 31994 | 7.8% |
|  |  |  |  |  |  |  |  |  | 31671 | 31994 | 7.8% |
| **Water Utilities** | **Water Utilities** | **Water Utilities** |  |  |  |  |  |  |  |  |  |
| Puris LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.75% | 9.62% | 2/20/2025 | 6/28/2029 | 591 | 591 | 591 | 0.1% |
| Puris LLC | (6)(7)(12)(28) | First lien senior secured loan | S+ | 5.75% | 9.44% | 6/28/2024 | 6/28/2029 | 2806 | 2790 | 2806 | 0.7% |
|  |  |  |  |  |  |  |  |  | 3381 | 3397 | 0.8% |
| **Total non-controlled/non-affiliated investments** | **Total non-controlled/non-affiliated investments** | **Total non-controlled/non-affiliated investments** |  |  |  |  |  |  | 737077 | 736333 | 179.0% |
| **Non-controlled/affiliated investments (10)** | **Non-controlled/affiliated investments (10)** | **Non-controlled/affiliated investments (10)** |  |  |  |  |  |  |  |  |  |
| **Commercial Services & Supplies** | **Commercial Services & Supplies** | **Commercial Services & Supplies** |  |  |  |  |  |  |  |  |  |
| IVM GK9 Holdings LLC |  | Equity |  |  |  | 10/07/2022 |  | 14969 | 4881 | 5000 | 1.2% |
|  |  |  |  |  |  |  |  |  | 4881 | 5000 | 1.2% |
| **Diversified Consumer Services** | **Diversified Consumer Services** | **Diversified Consumer Services** |  |  |  |  |  |  |  |  |  |
| 3360 Frankford LLC | (17) | Equity |  |  |  | 9/23/2024 |  | 2458671 | 2459 | 2459 | 0.6% |
|  |  |  |  |  |  |  |  |  | 2459 | 2459 | 0.6% |
| **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** | **Hotels, Restaurants & Leisure** |  |  |  |  |  |  |  |  |  |
| Liberty Top Holdings, LLC | (15)(18) | Equity |  |  |  | 2/28/2025 |  | 3000000 | 3000 | 3000 | 0.7% |
|  |  |  |  |  |  |  |  |  | 3000 | 3000 | 0.7% |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |  |
| Sparrow Rock, Inc. | (15)(25) | Preferred Equity |  |  |  | 11/12/2025 |  | 2614379 | 2000 | 2000 | 0.5% |
|  |  |  |  |  |  |  |  |  | 2000 | 2000 | 0.5% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |  |
| NW1LS CO-INVEST LP | (8) | Equity |  |  |  | 4/10/2025 |  | 10000000 | 10103 | 9668 | 2.5% |
|  |  |  |  |  |  |  |  |  | 10103 | 9668 | 2.5% |
| **Total non-controlled/affiliated investments** | **Total non-controlled/affiliated investments** | **Total non-controlled/affiliated investments** |  |  |  |  |  |  | 22443 | 22127 | 5.5% |
| **Controlled/affiliated investments (10)** | **Controlled/affiliated investments (10)** | **Controlled/affiliated investments (10)** |  |  |  |  |  |  |  |  |  |
| **Diversified Financial Services** | **Diversified Financial Services** | **Diversified Financial Services** |  |  |  |  |  |  |  |  |  |
| Lafayette Square SBLC, LLC | (26) | Equity |  |  |  | 12/30/2025 |  | 100 | 5445 | 5445 | 1.3% |
|  |  |  |  |  |  |  |  |  | 5445 | 5445 | 1.3% |
| **Diversified Real Estate Activities** | **Diversified Real Estate Activities** | **Diversified Real Estate Activities** |  |  |  |  |  |  |  |  |  |
| Lafayette Square Mortgage Solutions, LLC | (6)(7)(8)(12)(29) | First lien senior secured loan | S+ | 6.50% | —% | 11/06/2025 | 11/06/2030 |  |  |  | —% |
| Lafayette Square Mortgage Solutions, LLC | (24) | Equity |  |  |  | 11/6/2025 |  | 100 | 300 | 300 | 0.1% |
| LSA Affordable Housing LP | (8)(27) | Equity |  |  |  | 10/20/2025 |  | 3985639 | 4043 | 3986 | 1.0% |
|  |  |  |  |  |  |  |  |  | 4343 | 4286 | 1.1% |
| **Human Resource & Employment Services** | **Human Resource & Employment Services** | **Human Resource & Employment Services** |  |  |  |  |  |  |  |  |  |
| Studio Lafayette, LLC | (21) | Equity |  |  |  | 8/04/2025 |  | 100 | 1000 | 1000 | 0.2% |
|  |  |  |  |  |  |  |  |  | 1000 | 1000 | 0.2% |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2025**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company (1)(2)(3)(11)(13)** | **Footnotes** | **Investment Type** | **Reference** <br>**Rate and** <br>**Spread** | **Interest**<br>**Rate**<br>| **Acquisition**<br>**Date**<br>| **Maturity**<br>**Date**<br>| **Par**<br>**Amount/**<br>**Shares (4)**<br>| **Amortized**<br>**Cost**<br>| **Fair**<br>**Value**<br>| **Percentage**<br>**of Net**<br>**Assets (5)**<br>|
| **Insurance** | **Insurance** | **Insurance** |  |  |  |  |  |  |  |  |
| GELDO Inc. | (15)(19) | Preferred Equity |  |  | 6/17/2025 |  | 3857032 | 3000 | 3000 | 0.7% |
|  |  |  |  |  |  |  |  | 3000 | 3000 | 0.7% |
| **IT Services** | **IT Services** | **IT Services** |  |  |  |  |  |  |  |  |
| Lafayette Square Technologies, LLC | (20) | Equity |  |  | 8/04/2025 |  | 100 | 3000 | 3000 | 0.7% |
|  |  |  |  |  |  |  |  | 3000 | 3000 | 0.7% |
| **Professional Services** | **Professional Services** | **Professional Services** |  |  |  |  |  |  |  |  |
| Worker Solutions LLC | (8)(16) | Equity |  |  | 12/30/2024 |  | 100 | 1850 | 1850 | 0.4% |
|  |  |  |  |  |  |  |  | 1850 | 1850 | 0.4% |
| **Real Estate Management & Development** | **Real Estate Management & Development** | **Real Estate Management & Development** |  |  |  |  |  |  |  |  |
| Neighborhood Grocery Catalyst Fund LLC | (8)(14) | Equity |  |  | 12/20/2024 |  | 100 | 7783 | 7672 | 1.9% |
| Truly Redlands LLC | (22) | Equity |  |  | 9/30/2025 |  | 4500 | 4500 | 4500 | 1.1% |
|  |  |  |  |  |  |  |  | 12283 | 12172 | 3.0% |
| **Total controlled/affiliated investments** | **Total controlled/affiliated investments** | **Total controlled/affiliated investments** |  |  |  |  |  | 30921 | 30753 | 7.4% |
| **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** |  |  |  |  |  | $790441 | $789213 | 191.9% |
| **Cash and cash equivalents** | **Cash and cash equivalents** | **Cash and cash equivalents** |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | (9)(23) | Money market fund |  |  |  |  | 199187 | 199187 | 199187 | 48.4% |
| **Total cash and cash equivalents** | **Total cash and cash equivalents** | **Total cash and cash equivalents** |  |  |  |  |  | 199187 | 199187 | 48.4% |
| **Total Portfolio Investments, Cash and Cash Equivalents** | **Total Portfolio Investments, Cash and Cash Equivalents** | **Total Portfolio Investments, Cash and Cash Equivalents** |  |  |  |  |  | $989628 | $988400 | 240.3% |

---

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

(2) Footnote is currently not in use.

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

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

(5) Percentage is based on net assets of $411,329 as of December 31, 2025.

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

(7) Variable rate loans to the portfolio companies bear interest at a rate that is determined by reference to the Secured Overnight Financing Rate ("SOFR" or "S") or an alternate base rate (commonly based on the Federal Funds Rate or the U.S. Prime Rate), which generally resets quarterly. For each such loan, the Company has indicated the reference rate used and provided the spread and the interest rate in effect as of December 31, 2025. As of December 31, 2025, the reference rates for our variable rate loans were the 180-day SOFR at 3.57%, 90-day SOFR at 3.65% and 30-day SOFR at 3.69%.

(8) Position or portion thereof is an unfunded loan or equity commitment, and no interest is being earned on the unfunded portion, although the investment may earn unused commitment fees. Negative cost and fair value, if any, results from unamortized fees, which are capitalized to the cost of the investment. The unfunded commitment may be subject to a commitment termination date that may expire prior to the maturity date stated. See below for more information on the Company's unfunded commitments as of December 31, 2025:

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments** | **Unused Fee Rate** | **Commitment Type** | **Commitment**<br>**Expiration Date**<br>| **Unfunded** <br>**Commitment**<br>|
| **First Lien Debt** |  |  |  |  |
| Core Capital Partners II-S LP | —% | Revolver | 10/11/2027 | 6754 |
| SMG Operating Company, LLC | 1.00% | Delayed Draw Term Loan | 12/05/2030 | 1500 |
| Synergi, LLC | 0.50% | Revolver | 12/17/2027 | 3525 |
| MSPB MSO, LLC | 0.38% | Revolver | 11/10/2028 | 3390 |
| truCurrent LLC | 0.50% | Delayed Draw Term Loan | 2/12/2029 | 3000 |
| Trilon Group, LLC | 0.50% | Revolver | 5/25/2029 | 719 |
| ZRG Partners LLC | 1.50% | Delayed Draw Term Loan | 6/14/2029 | 556 |
| ZRG Partners LLC | 0.50% | Revolver | 6/14/2029 | 421 |
| Capital City LLC | —% | Delayed Draw Term Loan | 9/20/2029 | 2500 |
| C Speed LLC | 0.50% | Revolver | 10/01/2029 | 800 |
| Xpect Solutions, LLC | 0.50% | Delayed Draw Term Loan | 10/07/2029 | 2500 |
| Xpect Solutions, LLC | 0.50% | Revolver | 10/07/2029 | 2000 |
| TEC Services LLC | 1.00% | Delayed Draw Term Loan | 12/31/2029 | 3000 |
| TEC Services LLC | 0.50% | Revolver | 12/31/2029 | 2000 |
| Liberty Lenwich Holdings LLC | 0.50% | Revolver | 2/28/2030 | 3000 |
| Liberty Lenwich Holdings LLC | 0.50% | Delayed Draw Term Loan | 2/28/2030 | 3000 |
| Tyler Distribution Centers LLC | 0.50% | Revolver | 3/12/2030 | 6000 |
| Flatworld Intermediate Corporation | 0.50% | Revolver | 3/25/2030 | 7500 |
| DRS Imaging Services LLC | 0.50% | Revolver | 3/28/2030 | 4000 |
| Electro Technical Industries, LLC | 0.50% | Revolver | 3/31/2030 | 2222 |
| Soapy Joe's Midco OC Holdings LLC | 0.45% | Delayed Draw Term Loan | 4/22/2030 | 5000 |
| Genuine Food Lab LLC | 0.75% | Delayed Draw Term Loan | 6/06/2030 | 5000 |
| Lafayette Square Mortgage Solutions, LLC | —% | Delayed Draw Term Loan | 11/06/2030 | 10000 |
| OWP International LLC | 0.50% | Delayed Draw Term Loan | 11/20/2030 | 1759 |
| OWP International LLC | 0.50% | Revolver | 11/20/2030 | 2000 |
| Prime IV Hydration & Wellness Inc. | 0.50% | Delayed Draw Term Loan | 11/25/2030 | 4000 |
| Straine Dental Management, LLC | 0.25% | Delayed Draw Term Loan | 11/25/2030 | 3618 |
| Rotolo Consultants, Inc. | 0.50% | Revolver | 1/31/2031 | 18601 |
| **Equity** |  |  |  |  |
| Lafayette Square Mortgage Solutions, LLC | —% | Equity |  | 19700 |
| LSA Affordable Housing LP | —% | Equity |  | 1014 |
| Neighborhood Grocery Catalyst Fund LLC | —% | Equity |  | 4828 |
| NW1LS CO-INVEST LP | —% | Equity |  | 332 |
| Worker Solutions, LLC | —% | Equity |  | 1650 |
|  |  |  |  | $135889 |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2025**

(9) Cash and Cash equivalents balance represents amounts held in cash and in the interest-bearing money market fund - Goldman Sachs Financial Square Government Fund (FGTXX). As of December 31, 2025, $199,187 was held in FGTXX and had an average one year yield of 4.21%.

(10) Under the 1940 Act, the Company would be deemed to "control" a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the portfolio company. Under the 1940 Act, the Company would be deemed an "affiliated person" of a portfolio company if the Company owns 5% or more of the portfolio company's outstanding voting securities. As of December 31, 2025, the Company's non-controlled/affiliated investments and controlled/affiliated investments were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Non-controlled/affiliated investments** | **Fair Value as of** <br>**December 31, 2024**<br>| **Gross** <br>**Additions**<br>| **Gross** <br>**Reductions**<br>| **Change in** <br>**Unrealized** <br>**Gains (Losses)**<br>| **Fair Value as of** <br>**December 31, 2025**<br>| **Investment**<br>**Income**<br>|
| 3360 Frankford LLC | $2459 | $— | $— | $— | $2459 | $— |
| GK9 Global Companies, LLC | 22124 | 115 | (22124) | (115) |  | 647 |
| IVM GK9 Holdings LLC | 5000 |  |  |  | 5000 | 147 |
| Liberty Top Holdings, LLC |  | 3000 |  |  | 3000 | 159 |
| NW1LS CO-INVEST LP |  | 10103 |  | (435) | 9668 |  |
| Sparrow Rock, Inc. |  | 2000 |  |  | 2000 |  |
| **Non-controlled/affiliated investments** | $29583 | $15218 | $(22124) | $(550) | $22127 | $953 |
| **Controlled/affiliated investments** | **Fair Value as of** <br>**December 31, 2024**<br>| **Gross** <br>**Additions**<br>| **Gross** <br>**Reductions**<br>| **Change in** <br>**Unrealized** <br>**Gains (Losses)**<br>| **Fair Value as of** <br>**December 31, 2025**<br>| **Investment**<br>**Income**<br>|
| GELDO Inc. | $— | $3000 | $— | $— | $3000 | $— |
| Lafayette Square Mortgage Solutions, LLC |  | 300 |  |  | 300 |  |
| Lafayette Square SBLC, LLC |  | 5445 |  |  | 5445 |  |
| Lafayette Square Technologies, LLC |  | 3000 |  |  | 3000 |  |
| LSA Affordable Housing LP |  | 4043 |  | (57) | 3986 | 6 |
| Neighborhood Grocery Catalyst Fund LLC | 4219 | 4111 | (547) | (111) | 7672 | 68 |
| Studio Lafayette, LLC |  | 1000 |  |  | 1000 |  |
| Truly Redlands LLC |  | 4500 |  |  | 4500 |  |
| Worker Solutions LLC | 350 | 1500 |  |  | 1850 |  |
| **Controlled/affiliated investments** | $4569 | $26899 | $(547) | $(168) | $30753 | $74 |

---

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Consolidated Schedule of Investments (continued)**

**December 31, 2025**

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

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

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

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

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

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

(17) The Company owns a 66.25% share in 3360 Frankford LLC.

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

(19) The Company owns a 27.00% share in GELDO Inc.

(20) The Company owns a 100.00% share in Lafayette Square Technologies, LLC

(21) The Company owns a 100.00% share in Studio Lafayette, LLC

(22) The Company owns a 47.37% share in Truly Redlands LLC

(23) Assets are pledged as collateral for the ING Credit Facility. See Note 5 "Debt".

(24) The Company owns a 100.00% share in Lafayette Square Mortgage Solutions, LLC.

(25) The Company owns a 20.00% share in Sparrow Rock, Inc.

(26) The Company owns a 100.00% share in Lafayette Square SBLC, LLC.

(27) The Company owns a 90.89% share in LSA Affordable Housing LP.

(28) Represents investment in a Term Loan.

(29) Represents investment in a Delayed Draw Term Loan.

(30) Represents investment in a Revolving Facility.

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

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**Lafayette Square USA, Inc.**

**Notes to Consolidated Financial Statements**

**March 31, 2026**

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

**Note 1. Organization**

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

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

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

Investment Company Act of 1940, as amended (the "1940 Act"). On May 16, 2022, Lafayette Square Empire BDC, Inc.

filed with the Secretary of State of the State of Delaware a Certificate of Amendment to its Certificate of Incorporation to

change its corporate name from "Lafayette Square Empire BDC, Inc." to "Lafayette Square USA, Inc." In addition, for

U.S. federal income tax purposes, the Company adopted an initial tax year end of December 31, 2021, and was taxed as a

corporation for the tax years ending December 31, 2021 and December 31, 2022. The Company has elected to be treated,

and intends to qualify annually thereafter, as a RIC under Subchapter M of the Internal Revenue code ("the IRC").

However, there is no guarantee that the Company will qualify to make such an election for any future taxable year.

The Company is externally managed by LS BDC Adviser, LLC (the "Adviser") pursuant to the Investment Advisory

Agreement. The Adviser is a subsidiary of Lafayette Square Holding Company, LLC (together with its controlled

subsidiaries, including the Adviser and LS Administration, LLC, "Lafayette Square").

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

appreciation, primarily from directly originated investments in middle market companies.

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

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

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

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

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

instruments through secondary market transactions.

The Company has formed several wholly owned subsidiaries to support specific investment strategies. LS BDC Holdings,

LLC has elected to be a taxable entity to hold certain equity or equity-like investments in portfolio companies that are

'pass-through' entities for tax purposes. Lafayette Square SBIC, LP ("LS SBIC LP") and Lafayette Square SSBIC, LP

("LS SSBIC LP" and together with LS SBIC LP, the "LS SBICs") are each licensed by the U.S. Small Business

Administration (the "SBA") to invest in eligible 'small businesses' as defined by the SBA. Lafayette Square RBIC, LP

("LS RBIC LP") is licensed by the U.S. Department of Agriculture (the "USDA") as a Rural Business Investment

Company to help meet equity capital investment needs in rural communities. All significant intercompany transactions and

balances have been eliminated in such consolidation.

**Note 2. Significant Accounting Policies**

**Basis of Presentation** 

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

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

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

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

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

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

to current period industry classifications. See footnote (33) to the Consolidated Schedule of Investments.

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

statements and notes related thereto for the year ended December 31, 2025, included in the Company's annual report on

Form 10-K, which was filed with the U.S. Securities and Exchange Commission (the "SEC") on March 25, 2026. The

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results for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the full

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

**Use of Estimates** 

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

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

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

period. Actual results could differ from those estimates.

**Cash and Cash Equivalents**

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

Insurance Corporation insurance limits. As of March 31, 2026 and December 31, 2025, the Company held $193,198 and

$199,187 in cash and cash equivalents, respectively, of which no cash or cash equivalents were restricted. Of the total cash

and cash equivalents balance, $193,198 and $199,187 were held in an interest bearing money market fund, Goldman Sachs

Financial Square Government Fund (FGTXX), with U.S. Bank National Association as of March 31, 2026 and

December 31, 2025, respectively. For the three months ended March 31, 2026 and March 31, 2025, the Company earned

$928 and $1,438, respectively, in interest on cash and cash equivalents balances, and the balance is included under Interest

from cash and cash equivalents in the Consolidated Statements of Operations. Investments in money market funds are

categorized as Level 1 in the fair value hierarchy.

**Organization and Offering Costs**

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

consist of costs incurred in connection with the offering of the common stock of the Company.

The Company's initial organization costs incurred were expensed as incurred, and initial offering costs are amortized over

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

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

As of March 31, 2026, the Company had incurred $989 of organization and offering costs since inception.

**Deferred Financing Costs**

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

5) are deferred and amortized over the life of the respective credit facility, Notes, and SBA-guaranteed debentures.

**Indemnifications**

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

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

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

**Revenue Recognition**

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

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

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

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

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

*Investment Income*

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

that such amounts are expected to be collected. The Company records the accretion of discounts and amortization of

premiums as interest income using the effective interest method or straight-line method, as applicable, adjusted only for

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

distributions from subsidiaries, if any, is recognized on the applicable record date or ex-dividend date.

*Original Issue Discount*

Discounts to par on portfolio securities are accreted into income over the tenor of each instrument using the effective

interest method. Any remaining discount is accreted into income upon prepayment or redemption of the instrument.

*PIK Interest*

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

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

to the extent triggered in accordance with the terms of the applicable loan agreement, rather than being paid to the

Company in cash, and is recorded as interest income. Thus, the actual collection of PIK interest in cash may be deferred

until the debt principal is repaid. PIK interest income may create taxable income in excess of cash income received, and the

Company may be required to distribute such income to its stockholders to maintain its tax treatment as a RIC for U.S.

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

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

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

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

*Fee Income*

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

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

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

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

Such fees include loan prepayment penalties, structuring fees, covenant waiver fees and loan amendment fees, which are

generally received in cash and recorded as investment income when earned.

*Non-accrual loans*

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

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

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

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

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

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

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

future payments are likely to remain current. As of March 31, 2026, we had one investment partially on non-accrual status.

The non-accrual portion of this investment represents 1.0% of total investments at fair value. As of December 31, 2025, we

had one investment partially on non-accrual status. The non-accrual portion of this investment represents 0.9% of total

investments at fair value.

**Investment Classification**

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

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

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

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

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

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

"Control Investments." Investments which are neither Control Investments nor Affiliated Investments are referred to as

"Non-Controlled/Non-Affiliated Investments."

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**Fair Value of Financial Instruments** 

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

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

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

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

hierarchy.

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

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

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

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

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

instruments classified as Level 3.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

and overseeing and evaluating pricing services used.

**Distributions** 

Distributions to common stockholders are recorded on the record date. The Board authorizes and declares ordinary cash

distributions of the Company on a quarterly basis. The amount to be paid out as a distribution is determined by the Board

each quarter and is generally based upon the earnings estimated by management. To the extent distributions exceed the

Company's earnings, such amounts may constitute a return of capital to stockholders. Net realized capital gains, if any, are

distributed to stockholders at least annually, although the Company may, in its discretion, retain such capital gains for

investment.

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

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

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

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

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

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

1940 Act).

**Recent Accounting Pronouncements**

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

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

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

In November 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income Expense

Disaggregation Disclosures (Subtopic 220-40)," ("ASU 2024-03") which requires disaggregated disclosure of certain costs

and expenses, including purchases of inventory, employee compensation, depreciation, amortization and depletion, in each

relevant expense caption. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim

reporting periods beginning after December 15, 2027. Early adoption and retrospective application is permitted. The

Company is currently evaluating the impact on its consolidated financial statements.

**Segment Reporting**

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

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

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

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

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

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

assesses the performance of the Company and makes operating decisions on behalf of the Company on a consolidated basis

primarily based on the Company's net increase in net assets resulting from operations ("net income"). In addition to

numerous other factors and metrics, the CODM utilizes net income as a key metric in determining the amount of any

distribution to the Company's stockholders. As the Company's operations comprise of a single reporting segment, the

segment assets are reflected on the accompanying consolidated balance sheet as "total assets," and the significant segment

expenses are listed on the accompanying consolidated statement of operations.

**Note 3. Investments**

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

corresponding percentage of total portfolio investments) as of March 31, 2026 and December 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value**  | **Fair Value**  |
| First lien senior secured loans | $715357 | 86.5% | $710584 | 86.5% |
| Equity | 56609 | 6.8% | 55939 | 6.8% |
| Preferred equity | 50713 | 6.1% | 50544 | 6.1% |
| Subordinated debt | 3478 | 0.4% | 3493 | 0.4% |
| Convertible note | 1500 | 0.2% | 1500 | 0.2% |
| Warrants |  | —% |  | —% |
| **Total**  | $827657 | 100.0% | $822060 | 100.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| First lien senior secured loans | $690548 | 87.4% | $689683 | 87.4% |
| Equity | 48364 | 6.1% | 47880 | 6.1% |
| Preferred equity | 46604 | 5.9% | 46713 | 5.9% |
| Subordinated debt | 3425 | 0.4% | 3437 | 0.4% |
| Convertible note | 1500 | 0.2% | 1500 | 0.2% |
| Warrants |  | —% |  | —% |
| **Total** | $790441 | 100.0% | $789213 | 100.0% |

---

![](ls-20260331_g1.gif)

<sup>1</sup> Empire Region: New York, New Jersey, Connecticut and Pennsylvania

<sup>2</sup> Gulf Coast Region: Arkansas, Louisiana, Oklahoma and Texas

<sup>3</sup> Mid-Atlantic Region: Delaware, Kentucky, Maryland, North Carolina, South Carolina, Tennessee, Virginia and West

Virginia and the District of Columbia

<sup>4</sup> Far West: California, Hawaii and Nevada

<sup>5</sup> Great Lakes Region: Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin

<sup>6</sup> Southeast Region: Alabama, Georgia, Florida, Mississippi and the territory of Puerto Rico

<sup>7</sup> Cascade Region: Alaska, Idaho, Oregon and Washington

<sup>8</sup> Northeast Region: Maine, Massachusetts, New Hampshire, Rhode Island and Vermont

<sup>9</sup> Four Corners Region: Arizona, Colorado, New Mexico and Utah

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

and fair value (with corresponding percentage of total portfolio investments) as of March 31, 2026 and December 31, 2025.

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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value**  | **Fair Value**  |
| Empire<sup>1</sup> | $260914 | 31.5% | $262437 | 31.8% |
| Gulf Coast<sup>2</sup> | 142669 | 17.2% | 145194 | 17.7% |
| Mid-Atlantic<sup>3</sup> | 135862 | 16.4% | 135448 | 16.6% |
| Far West<sup>4</sup> | 131470 | 15.9% | 131140 | 16.0% |
| Great Lakes<sup>5</sup> | 78230 | 9.5% | 69416 | 8.4% |
| Southeast<sup>6</sup> | 43195 | 5.2% | 43040 | 5.2% |
| Cascade<sup>7</sup> | 17440 | 2.1% | 17542 | 2.1% |
| Northeast<sup>8</sup> | 9894 | 1.2% | 9825 | 1.2% |
| Four Corners<sup>9</sup> | 7983 | 1.0% | 8018 | 1.0% |
| **Total**  | $827657 | 100.0% | $822060 | 100.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Empire | $246988 | 31.2% | $248561 | 31.4% |
| Far West | 136579 | 17.3% | 137161 | 17.4% |
| Gulf Coast | 128165 | 16.2% | 131514 | 16.7% |
| Mid-Atlantic | 121155 | 15.3% | 121341 | 15.4% |
| Great Lakes | 84567 | 10.7% | 77486 | 9.8% |
| Southeast | 37836 | 4.8% | 37735 | 4.8% |
| Cascade | 17461 | 2.2% | 17587 | 2.2% |
| Northeast | 9888 | 1.3% | 9986 | 1.3% |
| Four Corners | 7802 | 1.0% | 7842 | 1.0% |
| **Total** | $790441 | 100.0% | $789213 | 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) as of March 31, 2026 and December 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value**  | **Fair Value**  |
| Professional Services | $84983 | 10.3% | $85575 | 10.4% |
| Commercial Services & Supplies | 70585 | 8.6% | 70705 | 8.7% |
| Hotels, Restaurants & Leisure | 60635 | 7.3% | 59892 | 7.3% |
| Construction & Engineering | 55137 | 6.7% | 55290 | 6.7% |
| Specialized Consumer Services | 54754 | 6.6% | 55249 | 6.7% |
| Health Care Providers & Services | 52267 | 6.3% | 52479 | 6.4% |
| Independent Power & Renewable | 48362 | 5.8% | 48500 | 5.9% |
| Road & Rail | 56448 | 6.8% | 47744 | 5.8% |
| IT Services | 42559 | 5.1% | 42316 | 5.1% |
| Diversified Financial Services | 41016 | 5.0% | 41191 | 5.0% |
| Media | 37560 | 4.5% | 40481 | 4.9% |
| Transportation Infrastructure | 31686 | 3.8% | 31993 | 3.9% |
| Real Estate Management & Development | 30280 | 3.7% | 29573 | 3.6% |
| Health Care Equipment & Services | 23183 | 2.8% | 22945 | 2.8% |
| Aerospace & Defense | 23132 | 2.8% | 22921 | 2.8% |
| Diversified Consumer Services | 21987 | 2.7% | 22077 | 2.7% |
| Food Products | 20610 | 2.5% | 20667 | 2.5% |
| Insurance | 18000 | 2.2% | 18000 | 2.2% |
| Diversified Telecommunication Services | 15852 | 1.9% | 15832 | 1.9% |
| Electrical Equipment | 12367 | 1.5% | 12458 | 1.5% |
| Food & Staples Retailing | 9894 | 1.2% | 9825 | 1.2% |
| Health Care Distributors | 7793 | 0.9% | 7822 | 1.0% |
| Diversified Real Estate Activities | 5193 | 0.6% | 5136 | 0.6% |
| Water Utilities | 3374 | 0.4% | 3389 | 0.4% |
| **Total**  | $827657 | 100.0% | $822060 | 100.0% |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Professional Services | $81543 | 10.3% | $82156 | 10.4% |
| Commercial Services & Supplies | 72767 | 9.3% | 72927 | 9.2% |
| Hotels, Restaurants & Leisure | 65740 | 8.3% | 65974 | 8.4% |
| Construction & Engineering | 55085 | 7.0% | 55241 | 7.0% |
| Specialized Consumer Services | 54727 | 6.9% | 55080 | 7.0% |
| Road & Rail | 52124 | 6.6% | 45140 | 5.7% |
| Media | 35757 | 4.5% | 39346 | 5.0% |
| Diversified Financial Services | 37532 | 4.7% | 37788 | 4.8% |
| Health Care Providers & Services | 37589 | 4.8% | 37723 | 4.8% |
| IT Services | 36875 | 4.7% | 37222 | 4.7% |
| Independent Power & Renewable | 36338 | 4.6% | 36499 | 4.6% |
| Transportation Infrastructure | 31671 | 4.0% | 31994 | 4.1% |
| Real Estate Management & Development | 27486 | 3.5% | 26934 | 3.4% |
| Health Care Equipment & Services | 23210 | 2.9% | 22990 | 2.9% |
| Diversified Consumer Services | 22028 | 2.8% | 22127 | 2.8% |
| Aerospace & Defense | 19657 | 2.5% | 19512 | 2.5% |
| Insurance | 18000 | 2.3% | 18000 | 2.3% |
| Food Products | 16924 | 2.1% | 16966 | 2.1% |
| Diversified Telecommunication Services | 15872 | 2.0% | 15870 | 2.0% |
| Electrical Equipment | 12441 | 1.6% | 12538 | 1.6% |
| Gas Utilities | 10661 | 1.3% | 10675 | 1.4% |
| Food & Staples Retailing | 9888 | 1.3% | 9986 | 1.3% |
| Health Care Distributors | 7802 | 1.0% | 7842 | 1.0% |
| Diversified Real Estate Activities | 4343 | 0.5% | 4286 | 0.5% |
| Water Utilities | 3381 | 0.4% | 3397 | 0.4% |
| Human Resource & Employment Services | 1000 | 0.1% | 1000 | 0.1% |
| **Total** | $790441 | 100.0% | $789213 | 100.0% |

---

Studio Lafayette, LLC was reclassified from Human Resource & Employment Services to Professional Services in the

current period. Human Resource & Employment Services is therefore presented in the December 31, 2025 comparative

period only. See footnote (33) to the Consolidated Schedule of Investments.

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

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

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

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

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

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

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

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

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

amount of management judgment. The Company's money market investments are classified as Level 1 and are not included

in the fair value hierarchy tables below.

The three-tier hierarchy of inputs is summarized below.

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

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

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

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

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

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

estimation.

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

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

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

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

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

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

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

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

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

The Company has engaged two independent third-party valuation providers to perform quarterly valuation procedures and

determine estimated fair value ranges for substantially all of its illiquid investments. Certain immaterial investments are

valued internally on a quarterly basis unless otherwise determined by the Valuation Committee, and are corroborated by an

independent valuation firm on an annual basis. Investments that have been completed within the past three months are fair

valued at cost unless there has been a material event since the completion date. If there has been a material event or if

material information emerges that was not known as of the close of the transaction, the independent third-party valuation

providers 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. Pursuant

to the Rule 2a-5 under the 1940 Act, the Board has chosen to designate the Adviser as the Valuation Designee to perform

fair value determinations relating to the value of the assets for which market quotations are not readily available, subject to

the Board's oversight.

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

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

investments and borrowings are traded.

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

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

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

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

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

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

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

Company at the measurement date. The methods used by the Company may calculate a fair value that is not indicative of

net realizable value or 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 amounts that may

ultimately be realized due to future circumstances that cannot be reasonably anticipated. Accordingly, the degree of

judgment exercised by the Adviser in determining fair value is greatest for securities categorized in Level 3.

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

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

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

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

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

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

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

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

The consolidated financial statements include portfolio investments at fair value of $822,060 and $789,213 as of March 31,

2026 and December 31, 2025, respectively. Because of the inherent uncertainty of valuation, the determined values may

differ significantly from the values that would have been used had a liquid market existed for the investments as of

March 31, 2026 and December 31, 2025.

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

as of March 31, 2026 and December 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Fair Value Measurements**  | **Fair Value Measurements**  | **Fair Value Measurements**  | **Fair Value Measurements**  |
|  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| First lien senior secured loans | $— | $— | $710584 | $710584 |
| Equity |  |  | 55939 | 55939 |
| Preferred equity |  |  | 50544 | 50544 |
| Subordinated debt |  |  | 3493 | 3493 |
| Convertible note |  |  | 1500 | 1500 |
| Warrants |  |  |  |  |
| **Total Investments**  | $— | $— | $822060 | $822060 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| First lien senior secured loans | $— | $— | $689683 | $689683 |
| Equity |  |  | 47880 | 47880 |
| Preferred equity |  |  | 46713 | 46713 |
| Subordinated debt |  |  | 3437 | 3437 |
| Convertible note |  |  | 1500 | 1500 |
| Warrants |  |  |  |  |
| **Total Investments**  | $— | $— | $789213 | $789213 |

---

The carrying value of the Credit Facility and SBA guaranteed debentures approximates fair value as of March 31, 2026 and

December 31, 2025 and would be categorized as Level 3 in the fair value hierarchy if determined as of the reporting date.

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

for the three months ended March 31, 2026 and March 31, 2025.

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended** <br>**March 31, 2026** | **For the three months ended** <br>**March 31, 2026** | **For the three months ended** <br>**March 31, 2026** | **For the three months ended** <br>**March 31, 2026** | **For the three months ended** <br>**March 31, 2026** | **For the three months ended** <br>**March 31, 2026** | **For the three months ended** <br>**March 31, 2026** |
|  | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** |
|  | **First Lien** <br>**Senior** <br>**Secured** <br>**Loans**<br>| **Subordinated** <br>**Debt**<br>| **Equity** | **Preferred** <br>**Equity**<br>| **Convertible**<br>**Note**<br>| **Warrants** | **Total** <br>**Investments**<br>|
| Balance as of December 31, 2025 | $689683 | $3437 | $47880 | $46713 | $1500 | $— | $789213 |
| Purchases of investments and other <br>adjustments to cost<br>| 60219 | 53 | 8245 | 4109 |  |  | 72626 |
| Proceeds from sales and repayments of <br>investments<br>| (36572) |  |  |  |  |  | (36572) |
| Net realized gain (loss) |  |  |  |  |  |  |  |
| Net accretion of discount on <br>investments<br>| 1162 |  |  |  |  |  | 1162 |
| Net change in unrealized gain (loss) on <br>investments<br>| (3908) | 3 | (186) | (278) |  |  | (4369) |
| **Balance as of March 31, 2026** | $710584 | $3493 | $55939 | $50544 | $1500 | $— | $822060 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended** <br>**March 31, 2025** | **For the three months ended** <br>**March 31, 2025** | **For the three months ended** <br>**March 31, 2025** | **For the three months ended** <br>**March 31, 2025** | **For the three months ended** <br>**March 31, 2025** | **For the three months ended** <br>**March 31, 2025** | **For the three months ended** <br>**March 31, 2025** |
|  | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** | **Investments** |
|  | **First Lien** <br>**Senior** <br>**Secured** <br>**Loans**<br>| **Subordinated** <br>**Debt**<br>| **Equity** | **Preferred** <br>**Equity**<br>| **Convertible**<br>**Note**<br>| **Warrants** | **Total** <br>**Investments**<br>|
| Balance as of December 31, 2024 | $540195 | $1712 | $12028 | $1652 | $1500 | $— | $557087 |
| Purchases of investments and other <br>adjustments to cost<br>| 169425 | 35 | 19562 |  |  |  | 189022 |
| Proceeds from sales and repayments of <br>investments<br>| (80555) |  |  |  |  |  | (80555) |
| Net realized gain (loss) | 58 |  |  |  |  |  | 58 |
| Net accretion of discount on <br>investments<br>| 614 |  |  |  |  |  | 614 |
| Net change in unrealized gain (loss) on <br>investments<br>| 237 | 2 | 1715 | 545 |  |  | 2499 |
| **Balance as of March 31, 2025** | $629974 | $1749 | $33305 | $2197 | $1500 | $— | $668725 |

---

For the three months ended March 31, 2026, the net change in unrealized gain (loss) on investments attributable to Level 3

investments still held on March 31, 2026 was $(4,369) as shown on the Consolidated Statements of Operations. For the

three months ended March 31, 2025, the net change in unrealized gain (loss) on investments attributable to Level 3

investments still held on March 31, 2025 was $2,499 as shown on the Consolidated Statements of Operations.

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

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

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

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

three months ended March 31, 2026 and March 31, 2025.

**Significant Unobservable Inputs**

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

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

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

Company.

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

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

hierarchy as of March 31, 2026 and December 31, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | **Range** | **Range** |
|  | <br>**Fair Value, as of** <br>**March 31, 2026**<br>| <br>**Valuation** <br>**Technique**<br>| <br>**Unobservable**<br>**Input**<br>| <br>**Weighted**<br>**Average Mean**<br>| **Minimum** | **Maximum** |
| Assets: |  |  |  |  |  |  |
| First lien senior secured loans | $594864 | Discounted Cash <br>Flow<br>| Discount Rate | 10.8% | 8.4% | 15.9% |
| First lien senior secured loans | 47746 | Waterfall Analysis | EV/EBITDA | 7.0x | 6.0x | 8.0x |
| First lien senior secured loans | 67974 | Transaction <br>Precedent<br>| Transaction Price | N/A | N/A | N/A |
| Equity | 47939 | Transaction <br>Precedent<br>| Transaction Price | N/A | N/A | N/A |
| Equity | 8000 | Waterfall Analysis | EV/EBITDA | 6.8x | 6.3x | 7.3x |
| Subordinated debt | 1921 | Waterfall Analysis | EV/EBITDA | 7.8x | 7.5x | 8.0x |
| Subordinated debt | 1572 | Discounted Cash <br>Flow<br>| Discount Rate | 12.7% | 12.7% | 12.7% |
| Preferred equity | 8430 | Transaction <br>Precedent<br>| Transaction Price | N/A | N/A | N/A |
| Preferred equity | 15000 | Discounted Cash <br>Flow<br>| Discount Rate | 10.0% | 10.0% | 10.0% |
| Preferred equity | 27114 | Waterfall Analysis | EV/EBITDA | 1.1x | 0.6x | 1.3x |
| Convertible note | 1500 | Transaction <br>Precedent<br>| Transaction Price | N/A | N/A | N/A |
| Warrants |  | Waterfall Analysis | EV/EBITDA | 0.0x | 0.0x | 0.0x |
| **Total Level 3 Assets** | $822060 |  |  |  |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | **Range** | **Range** |
|  | <br>**Fair Value, as of** <br>**December 31, 2025**<br>| <br>**Valuation** <br>**Technique**<br>| <br>**Unobservable**<br>**Input**<br>| <br>**Weighted**<br>**Average Mean**<br>| **Minimum** | **Maximum** |
| Assets: |  |  |  |  |  |  |
| First lien senior secured loans | $575915 | Discounted Cash <br>Flow<br>| Discount Rate | 10.0% | 7.9% | 12.8% |
| First lien senior secured loans | 59426 | Waterfall Analysis | EV/EBITDA | 5.0x | 1.0x | 7.3x |
| First lien senior secured loans | 54342 | Transaction <br>Precedent<br>| Transaction Price | N/A | N/A | N/A |
| Subordinated debt | 1883 | Waterfall Analysis | EV/EBITDA | 8.3x | 8.0x | 8.5x |
| Subordinated debt | 1554 | Discounted Cash <br>Flow<br>| Discount Rate | 14.4% | 14.4% | 14.4% |
| Equity | 39880 | Transaction <br>Precedent<br>| Transaction Price | N/A | N/A | N/A |
| Equity | 8000 | Waterfall Analysis | EV/EBITDA | 6.1x | 5.8x | 6.8x |
| Preferred equity | 5000 | Transaction <br>Precedent<br>| Transaction Price | N/A | N/A | N/A |
| Preferred equity | 15000 | Discounted Cash <br>Flow<br>| Discount Rate | 12.0% | 12.0% | 12.0% |
| Preferred equity | 26713 | Waterfall Analysis | EV/EBITDA | 1.5x | 1.0x | 8.3x |
| Convertible note | 1500 | Transaction <br>Precedent<br>| Transaction Price | N/A | N/A | N/A |
| Warrants |  | Waterfall Analysis | EV/EBITDA | 0.0x | 0.0x | 0.0x |
| **Total Level 3 Assets** | $789213 |  |  |  |  |  |

---

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

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

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

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

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

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

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

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

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

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

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

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

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

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

**Note 5. Debt**

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

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

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

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

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

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

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

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

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

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

remain outstanding, we are generally prohibited from making distributions to our stockholders or repurchasing of such

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

March 31, 2026 and December 31, 2025, the Company's asset coverage ratios based on the aggregate amounts of senior

securities outstanding were 221.5% and 220.8%, respectively.

The facilities of the Company consist of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Aggregate**<br>**Principal** <br>**Amount** <br>**Available**<br>| **Principal** <br>**Amount** <br>**Outstanding**<br>| **Unused** <br>**Portion**<br>| **Aggregate**<br>**Principal** <br>**Amount** <br>**Available**<br>| **Principal** <br>**Amount** <br>**Outstanding**<br>| **Unused** <br>**Portion**<br>|
| Secured borrowings | $300000 | $289982 | $10018 | $300000 | $276982 | $23018 |
| SBA-Guaranteed <br>Debentures<br>| 290000 | 230000 | 60000 | 290000 | 230000 | 60000 |
| Note payable | 65000 | 65000 |  | 65000 | 65000 |  |
| **Total** | $655000 | $584982 | $70018 | $655000 | $571982 | $83018 |

---

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

Company's total debt for the three months ended March 31, 2026 and March 31, 2025:

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Interest expense | $7397 | $5599 |
| Non-usage fee <sup>(1)</sup> | 66 | 47 |
| Amortization of deferred financing costs | 591 | 369 |
| Weighted average interest rate <sup>(2)</sup> | 5.88% | 6.11% |
| Weighted average outstanding balance | $510104 | $371759 |

---

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

Facility.

(2) Weighted average interest rate is calculated as interest expense for the period, annualized, divided by the weighted

average outstanding balance for the period. Excludes non-usage fees and amortization of deferred financing costs, each

presented as separate line items in the table above.

**Credit Facilities**

*ING Credit Facility*

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

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

Administrative Agent, Lead Arranger, Bookrunner and Sustainability Structuring Agent. The ING Credit Facility is

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

provides that such facility will be guaranteed by certain subsidiaries of the Company formed or acquired by the Company

after the date of such facility (collectively, the "Guarantors"). The ING Credit Facility permits the Company to borrow debt

under such facility in an amount (the "borrowing base") calculated based upon unused capital commitments made by

investors in the Company and the value of certain eligible portfolio investments. The amount of permissible borrowings

under the ING Credit Facility may be increased through an uncommitted accordion feature through which existing and new

lenders may, at their option, agree to provide additional financing to the Company. The ING Credit Facility is secured by a

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

investments held by the Company and each Guarantor, subject to certain exceptions. The Company may use the proceeds

of the ING Credit Facility for general corporate purposes, including the funding of portfolio investments.

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

Amounts drawn under the ING Credit Facility in U.S. dollars bear interest at either (i) term SOFR plus margin of 2.70%

per annum, or (ii) the alternate base rate plus margin of 1.70% per annum. In each case, the annual interest rate is

adjustable based on a sustainability-linked loan pricing structure that directly references Goal2030™, the Company's

proprietary framework of measurable objectives with respect to its portfolio companies, including (1) increasing

employment opportunities by assisting portfolio companies in creating and/or retaining 100,000 Working Class Jobs and

150,000 jobs overall, (2) incentivizing at least 50% of borrowers to adopt third-party employee benefit services or human

resources policy changes, and (3) encouraging economic growth in Working Class Areas by investing at least 50% of

assets in companies located in or that are Substantial Employers of Working Class People (for a full description of

Goal2030™, see "Item 1. Business" in the Company's Annual Report on Form 10-K for the year ended December 31,

2025), with ING acting as the sole Sustainability Structuring Agent. Following completion of the annual benchmark review

for the year ended December 31, 2025, as verified by an independent third-party auditor, the Company met two of the three

applicable benchmarks. As a result, effective May 6, 2026, the applicable interest rate margin will be reduced by 8 basis

points and the commitment fee will be reduced by 1.6 basis points, in accordance with the terms of the credit agreement.

The Company may elect either the term SOFR or alternate base rate at the time of each drawdown, and loans denominated

in U.S. dollars may be converted from one rate to another at any time at the Company's option, subject to certain

conditions. Amounts drawn under the ING Credit Facility in other permitted currencies bear interest at the relevant rate

specified in such facility plus an applicable margin (including any applicable credit spread adjustment).

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

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

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

facilities of this nature.

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

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

the period from the Commitment Termination Date to the Maturity Date, the Company is obligated to make mandatory

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

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

(the "First Amendment"), to the ING Credit Facility. The parties to the First Amendment include the Company, the lenders

party thereto, Subsidiary Guarantors party thereto and ING Capital LLC, as Administrative Agent. The First Amendment

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

$75 million to $150 million.

On December 12, 2024, the Company entered into a joinder agreement (the "First Lender Joinder Agreement"), under the

accordion feature in the ING Credit Facility, the aggregate commitments under the ING Credit Facility increased from

$150 million to $175 million. The parties to the First Lender Joinder Agreement include the Company, BankUnited, N.A.,

as additional lender, the Subsidiary Guarantors party to such agreement and the Administrative Agent.

On December 20, 2024, the Company entered into a joinder agreement (the "Second Lender Joinder Agreement"), under

the accordion feature in the ING Credit Facility, the aggregate commitments under such facility increased from

$175 million to $225 million. The parties to the Second Lender Joinder Agreement include the Company, Customers Bank,

as additional lender, the Subsidiary Guarantors party to such agreement and the Administrative Agent.

On March 20, 2025, the Company entered into a commitment increase agreement (the "First Commitment Increase

Agreement") under the accordion feature in the ING Credit Facility, the aggregate commitments under such facility

increased from $225 million to $250 million. The parties to the First Commitment Increase Agreement include the

Company, ING Capital LLC as lender, the Subsidiary Guarantors party to such agreement and the Administrative Agent.

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

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

Company, the lenders party to such amendment, Subsidiary Guarantors party to such amendment and ING Capital LLC, as

Administrative Agent. The Second Amendment provides for an increase of the accordion provision to permit increases in

the total facility amount of up to $300 million and permit the Company to enter into repurchase agreements in an aggregate

nominal amount of up to $30 million.

Also on April 24, 2025, the Company entered into a waiver letter permitting the Company to enter into a repurchase

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

On May 30, 2025, the Company entered into a joinder agreement (the "Third Lender Joinder Agreement") under the

accordion feature in the ING Credit Facility pursuant to which aggregate commitments under such facility increased from

$250 million to $275 million. The parties to the Third Lender Joinder Agreement include the Company, City National

Bank, as additional lender, the Subsidiary Guarantors party to such agreement and the Administrative Agent.

On October 30, 2025, the Company entered into a commitment increase agreement (the "Second Commitment Increase

Agreement") under the accordion feature in the ING Credit Facility pursuant to which aggregate commitments under such

facility increased from $275 million to $300 million. The parties to the Second Commitment Increase Agreement include

the Company, City National Bank, as additional lender, the Subsidiary Guarantors party to such agreement and the

Administrative Agent.

As amended as of March 31, 2026, the ING Credit Facility allows us to borrow up to $300 million, subject to certain

restrictions, including availability under the borrowing base.

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

As of March 31, 2026 and December 31, 2025, we had approximately $290.0 million and $277.0 million, respectively, in

outstanding borrowings from the ING Credit Facility and availability as determined under the borrowing base of the ING

Credit Facility of $10.0 million.

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

ING Credit Facility for the three months ended March 31, 2026 and March 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Interest expense | $3473 | $3198 |
| Non-usage fee <sup>(1)</sup> | 66 | 47 |
| Amortization of financing costs | 201 | 138 |
| Weighted average interest rate <sup>(2)</sup> | 6.55% | 7.25% |
| Weighted average outstanding balance | $215104 | $178810 |

---

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

Facility.

(2) Weighted average interest rate is calculated as interest expense for the period, annualized, divided by the weighted

average outstanding balance for the period. Excludes non-usage fees and amortization of deferred financing costs, each

presented as separate line items in the table above.

**SBA-Guaranteed Debentures**

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

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

requirements, including, but not limited to, periodic examination by the SBA. As of March 31, 2026 and December 31,

2025, LS SBIC LP and LS SSBIC LP had a combined regulatory capital of $175.0 million and $110.0 million,

respectively. SBA-guaranteed debentures outstanding were $230.0 million as of both March 31, 2026 and December 31,

2025. SBA debentures are non-recourse to us, have a 10-year maturity, and may be prepaid at any time without penalty.

The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a market-driven spread

over 10-year U.S. Treasury Notes. Current SBA regulations limit the amount that each of LS SBIC LP and LS SSBIC LP

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

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

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

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

The following table summarizes the Company's SBA-guaranteed debentures as of March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Issuance Date** | **Maturity Date** | **Debenture Amount** | **Interest Rate** | **SBA Annual Charge** |
| September 15, 2023 | March 1, 2034 | $31000 | 5.04% | 0.047% |
| March 15, 2024 | September 1, 2034 | 5960 | 4.38% | 0.047% |
| June 14, 2024 | September 1, 2034 | 45540 | 4.38% | 0.129% |
| September 16, 2024 | March 1, 2035 | 82505 | 4.96% | 0.129% |
| December 12, 2024 | March 1, 2035 | 27500 | 4.96% | 0.347% |
| March 28, 2025 | September 1, 2035 | 9995 | 4.53% | 0.347% |
| June 27, 2025 | September 1, 2035 | 27500 | 4.53% | 0.347% |

---

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

debentures for the three months ended March 31, 2026 and March 31, 2025:

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| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Interest expense | $2807 | $2401 |
| Non-usage fee |  |  |
| Amortization of financing costs | 304 | 231 |
| Weighted average interest rate <sup>(1)</sup> | 4.95% | 5.05% |
| Weighted average outstanding balance | $230000 | $192949 |

---

(1) Weighted average interest rate is calculated as interest expense for the period, annualized, divided by the weighted

average outstanding balance for the period.

**Notes Payable**

On August 19, 2025, the Company entered into a Note Purchase Agreement (the "Note Purchase Agreement") governing

the issuance of $65.0 million in aggregate principal amount of 7.00% Senior Notes (the "Notes") to qualified institutional

investors in a private placement.

The Notes were issued on August 19, 2025 and will mature on August 19, 2030 unless redeemed, purchased or prepaid

prior to such date by the Company in accordance with their terms and have a fixed coupon rate of 7.00% per annum.

Interest on the Notes will be due semiannually. These interest rates are subject to increase (up to a maximum increase of

2.00% above the stated rate for the Notes) in the event that, subject to certain exceptions, the Notes cease to have an

investment grade rating and the Company's minimum secured debt ratio exceeds certain thresholds.

The Notes are general unsecured obligations of the Company that rank at least pari passu, without preference or priority,

with all other unsecured and unsubordinated indebtedness of the Company. The Notes are guaranteed, on a senior

unsecured basis, by LS BDC Holdings, LLC (the "Guarantor"), a wholly owned subsidiary of the Company.

The Note Purchase Agreement contains customary terms and conditions for senior unsecured notes issued in a private

placement, including, without limitation, affirmative and negative covenants, such as maintenance of the Company's status

as a business development company within the meaning of the Investment Company Act of 1940, as amended, a minimum

consolidated net worth test and a minimum asset coverage ratio. The Note Purchase Agreement also contains customary

events of default with customary cure and notice periods.

In addition, the Company is obligated to offer to repay the Notes at 100% of the principal amount of such Notes, together

with interest on such Notes accrued to, if certain change in control events occur.

The Notes were offered in reliance on Section 4(a)(2) of Securities Act of 1933, as amended (the "Securities Act"). The

Notes have not and will not be registered under the Securities Act or any state securities laws and, unless so registered, may

not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the

registration requirements of the Securities Act, as applicable. The Company intends to use the net proceeds from this

offering for its general corporate purposes.

As of March 31, 2026, the carrying amount of the Company's borrowings under the Notes approximated its fair value. As

of March 31, 2026, unamortized debt issuance costs of $1,512 are being deferred and amortized over the remaining term of

the Notes. As of March 31, 2026, the Notes had an outstanding balance of $65,000.

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

Notes for the three months ended March 31, 2026 and March 31, 2025:

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| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Interest expense | $1117 | $— |
| Non-usage fee |  |  |
| Amortization of financing costs | 86 |  |
| Weighted average interest rate <sup>(1)</sup> | 7.00% | —% |
| Weighted average outstanding balance | $65000 | $— |

---

(1) Weighted average interest rate is calculated as interest expense for the period, annualized, divided by the weighted

average outstanding balance for the period.

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

**Investment Advisory Agreement** 

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

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

most recently approved its renewal on March 17, 2026. The Adviser is a registered investment adviser with the SEC. The

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

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

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

capital drawdown from its non-affiliated investors (the "Initial Drawdown") at an annual rate of (i) prior to a Liquidity

Event (as defined below), 0.75%, and (ii) following a Liquidity Event, 1.0%, in each case of the average value of our gross

assets (gross assets equal the total assets of the Company as set forth on the Company's Consolidated Statements of Assets

and Liabilities) at the end of the two most recently completed calendar quarters. No Management Fee is charged on

committed but undrawn capital commitments.

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

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

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

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

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

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

For the three months ended March 31, 2026 and March 31, 2025, the Company incurred Management Fee expense of

$1,882 and $1,478, respectively. As of March 31, 2026 and December 31, 2025, $1,882 and $1,841, respectively, of such

expense remained payable as shown on the Consolidated Statements of Assets and Liabilities.

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

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

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

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

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

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

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

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

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

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

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

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

shares, but excluding the incentive fee.

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

as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

income exceeds 1.47% in any calendar quarter; and

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

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

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

For the three months ended March 31, 2026 and March 31, 2025, the Company incurred Income-Based Fees of $1,603 and

$1,514, respectively. As of March 31, 2026 and December 31, 2025, $1,603 and $1,516 of such fees, respectively,

remained payable as shown on the Consolidated Statements of Assets and Liabilities.

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

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

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

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

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

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

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

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

Following a Liquidity Event, the amount payable equals:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For the three months ended March 31, 2026 and March 31, 2025, the Company has not incurred any Capital Gains Fees.

**Administration Agreement** 

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

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

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

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

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

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

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

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

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

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

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

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

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

Officer and Chief Financial Officer and their respective staffs, (iii) the costs of any sub-administration agreements that our

Administrator may enter into and (iv) the cost of providing managerial assistance upon request to portfolio companies. The

Administration Agreement may be terminated by either party without penalty upon 60 days' written notice to the other

party. Our Administrator reserves the right to waive all or part of any reimbursements due from us at its sole discretion.

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

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

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

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

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

Administration Agreement or otherwise as administrator for us.

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

For the three months ended March 31, 2026 and March 31, 2025, the Company incurred $500 and $450, respectively, in

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

Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, $0 and $0, respectively, were

unpaid and included in administrative services fee payable in the accompanying Consolidated Statements of Assets and

Liabilities. No administrative services fee was charged to the Company prior to the Company's commencement of

operations.

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

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

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

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

reimbursed for certain expenses it incurs on our behalf.

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

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

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

assessment), clerical and administrative personnel.

**Affiliated Transactions**

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

committed, as the case may be, in such transaction.

**Due to/from Affiliate**

From time to time, the Administrator pays for certain unaffiliated third-party expenses incurred by the Company. These

expenses are not marked-up and represent the same amount the Company would have paid had the Company paid the

expenses directly. After the commencement of operations these expenses are reimbursed on an ongoing basis. As of

March 31, 2026 and December 31, 2025, $260 and $246, respectively, were included in the Due to Affiliate line item in the

Consolidated Statements of Assets and Liabilities for reimbursable expenses paid by the Administrator on behalf of the

Company. As of March 31, 2026 and December 31, 2025, $— and $—, respectively, were included in the Due from

Affiliate line item in the Consolidated Statements of Assets and Liabilities for reimbursable expenses due from the

Administrator on behalf of the Company.

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**Note 7. Commitments and Contingencies**

As of March 31, 2026, the Company was not subject to any legal proceedings, although the Company may, from time to

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

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

financing commitments or delayed draw commitments. The Company had the following unfunded commitments to fund

investments as of the indicated dates:

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| | | |
|:---|:---|:---|
|  | **Par Value as of** <br>**March 31, 2026** | **Par Value as of**<br>**December 31, 2025** |
| Unfunded debt securities | $119996 | $108365 |
| Unfunded equity securities | 26635 | 27524 |
| Total unfunded commitments | $146631 | $135889 |

---

**Note 8. Directors Fees**

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

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

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

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

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

For the three months ended March 31, 2026 and March 31, 2025, independent directors fees were paid in the form of our

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

On March 27, 2026, the Company issued 26,952 shares of common stock to our directors as compensation for their

services for the fiscal year ended December 31, 2025. On March 26, 2025, the Company issued 23,460 shares of common

stock to our directors as compensation for their services for the fiscal year ended December 31, 2024.

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

Act). For the three months ended March 31, 2026 and March 31, 2025, the Company accrued $125 and $80, for directors'

fees expense, respectively.

**Note 9. Share Data and Distributions**

**Earnings per Share**

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31,

2026 and March 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| **Earnings (loss) per common share (basic and diluted):** |  |  |
| Net increase (decrease) in net assets resulting from operations | $4729 | $11147 |
| Weighted average common shares outstanding | 27942796 | 23977487 |
| **Earnings (loss) per common share (basic and diluted):** | $0.17 | $0.46 |

---

**Capital Activity**

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

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

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

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

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

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

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

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

As of March 31, 2026 and December 31, 2025, the Company had closed capital commitments totaling $412.1 million and

$411.2 million, respectively, for the private placement of the Company's common stock, of which $— and $20.4 million,

respectively, were uncalled.

---

| | | | |
|:---|:---|:---|:---|
| **Share Issuance Date** | **Shares Issued** | **Amount** | **Average Offering** <br>**Price per Share**<br>|
| March 27, 2026 | 1444394 | $21348 | $14.78 |
| **Total** | 1444394 | $21348 | $14.78 |

---

---

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

---

**Distributions**

Distributions to common stockholders are recorded on the ex-dividend date. The Company has elected to be taxed as a RIC

under Subchapter M of the IRC. As a RIC, the Company is required to distribute an amount at least equal to 90% of its

investment company taxable income to its stockholders, determined without regard to any deduction for such distributions

paid, in order to be eligible for tax benefits allowed to a RIC under Subchapter M of the IRC. The Company anticipates

paying out as a distribution all or substantially all of those amounts. The amount to be paid out is determined by the Board

and is based on management's estimate of the Company's annual taxable income. Net realized capital gains, if any, may be

distributed to stockholders or retained for reinvestment.

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

cash distributions declared by the Board, unless a stockholder elects to "opt out" of the DRIP. As a result, if the Board

declares a cash distribution, then the stockholders who have not "opted out" of the DRIP will have their cash distributions

automatically reinvested in additional shares of common stock, rather than receiving a cash distribution. The Company

reserves the right to use primarily newly issued shares to implement the DRIP, whether the shares are trading at a price per

share at or above NAV. NAV is determined as of the latest available quarter end before such distribution. However, the

Company reserves the right to purchase shares in the open market in connection with the implementation of the DRIP. In

the event the price per share is trading at a discount to NAV, the Company intends to purchase shares in the open market

rather than issue new shares.

For the three months ended March 31, 2026, the following table summarizes the distributions declared on shares of the

Company's common stock:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Amount** | **Amount Per** <br>**Share**<br>|
| March 27, 2026 | March 27, 2026 | April 23, 2026 | $9197 | $0.33 |

---

For the three months ended March 31, 2025, the following table summarizes the distributions declared on shares of the

Company's common stock:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date Declared** | **Record Date** | **Payment Date** | **Amount** | **Amount Per** <br>**Share**<br>|
| March 25, 2025 | March 25, 2025 | May 6, 2025 | $8393 | $0.35 |

---

The Company has a DRIP, pursuant to which stockholders may elect to have their cash distributions reinvested in

additional shares of the Company's common stock. The Company satisfies DRIP participation through the issuance of new

shares. When the Company issues new shares in connection with the DRIP, the issue price is equal to the net asset value

per share most recently determined as of the distribution payment date. Dividend reinvestment plan activity for the three

months ended March 31, 2026 and March 31, 2025 was as follows:

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| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Shares issued | 92711 | 182443 |
| Average issue price per share | $14.84 | $14.76 |

---

**Note 10. Tax Matters**

The Company is subject to the U.S. federal income tax rules and filing requirements. The Company has elected to be

treated, and intends to qualify annually thereafter, as a RIC under Subchapter M of the IRC. As a result, the Company

generally does not expect to be subject to U.S. federal income taxes on its RIC operations. However, there is no guarantee

that the Company will qualify to make such an election for any taxable year.

The Company has not recorded a liability for any uncertain tax positions pursuant to the provisions of ASC 740, Income

Taxes, as of March 31, 2026 and December 31, 2025.

In the normal course of business, the Company is subject to examination by federal and certain state and local tax

regulators. The Company adopted a tax year-end of December 31. It is the Company's policy to recognize accrued interest

and penalties, if any, related to unrecognized tax benefits as a component of provision for income taxes.

The Company's taxable income for each period is an estimate and will not be finally determined until the Company files its

tax return for each year. Therefore, the final taxable income earned in each period and carried forward for distribution in

the following period may be different than this estimate.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to

carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-

term capital losses. As of March 31, 2026 the Company did not have a capital loss carryforward.

For U.S. federal income tax purposes, distributions paid to stockholders are reported as ordinary income, return of capital,

long term capital gains or a combination thereof. The tax character of distributions paid for the three months ended

March 31, 2026 and for the year ended December 31, 2025, were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the year ended** <br>**December 31, 2025**<br>|
| Ordinary Income | $9197 | $34708 |
| Long-term Capital Gain | $— | $— |
| Return of Capital | $— | $— |

---

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As of March 31, 2026 and December 31, 2025, the tax cost and estimated gross unrealized appreciation/(depreciation) from

investments for federal income tax purposes were as follows.

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Tax cost | $828569 | $791182 |
| Gross unrealized appreciation | $7221 | $9209 |
| Gross unrealized depreciation | (13730) | (11178) |
| **Net unrealized investment appreciation / (depreciation) on** <br>**investments**<br>| $(6509) | $(1969) |

---

The Company has a wholly owned corporate subsidiary that is consolidated for financial statement purposes. This entity;

LS BDC Holdings, LLC (the "taxable subsidiary"), has elected to be taxed as regular c-corporation for federal income tax

purposes. This taxable subsidiary recognizes deferred tax assets and liabilities for the estimated future tax effects

attributable to temporary differences between the tax basis of certain assets and liabilities and the reported amounts

included in the accompanying consolidated balance sheet using the applicable statutory tax rates in effect for the year in

which any such temporary differences are expected to reverse.

Total income tax (expense) benefit for the Company differs from the amount computed by applying the federal statutory

income tax rate of 21% to net increase (decrease) in net assets from operations for the three months ended March 31, 2026

are as follows:

---

| | |
|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>|
| Income tax (expense)/benefit at federal statutory tax rate | $(993) |
| Income attributable to the RIC and not subject to corporate tax | 1045 |
| State and local income tax benefit (net of federal benefit) | 11 |
| Changes in Valuation Allowances | (63) |
| **Total income tax (expense)/benefits** | $— |

---

State and local income taxes, net of federal benefit, decreased the effective tax rate by 0.01% from the federal statutory

rate, for the period ended March 31, 2026.

At March 31, 2026, the taxable subsidiary did not have any capital loss carryforwards.

Net operating loss carryforwards are available to offset future taxable income. These net operating loss carryforwards can

be carried forward indefinitely and may offset up to 80% of taxable income in any given year. Any unused portion will

continue to be carried forward. As of March 31, 2026, the Company had a net operating loss carryforward for federal

income tax purposes of $509.

At March 31, 2026, the Company determined a partial valuation allowance of the Company's gross deferred tax asset was

required. The Company's assessment considered, among other matters, the nature, frequency and severity of current and

cumulative losses, the duration of statutory carryforward periods and the associated risk that operating loss and capital loss

carryforwards are limited or are likely to expire unused, and unrealized gains and losses on investments. Through the

consideration of these factors, the Company has determined that it is more likely than not that the Company's net deferred

tax asset would not be realized in full. As a result, the Company recorded a partial valuation allowance with respect to its

gross deferred tax asset for the three months ended March 31, 2026. From time to time, the Company may modify its

estimates or assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance as

new information becomes available. Modifications to the Company's estimates or assumptions regarding its deferred tax

liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles

or related guidance or interpretations thereof, limitations imposed on or expirations of the Company's net operating losses

and capital loss carryovers (if any) and changes in applicable tax law could result in increases or decreases in the

Company's NAV per share, which could be material.

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**Note 11. Financial Highlights**

Below is the schedule of financial highlights of the Company for the three months ended March 31, 2026 and March 31,

2025:

---

| | | |
|:---|:---|:---|
| **Per Common Share Data:**<sup>(1)</sup> | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Net asset value, beginning of period | $14.81 | $14.81 |
| Net investment income (loss) | 0.33 | 0.36 |
| Net realized and unrealized gain (loss) | (0.16) | 0.10 |
| **Net increase (decrease) in net assets resulting from operations** | 0.17 | 0.46 |
| Effect of offering price of subscriptions<sup>(2)</sup> | 0.01 |  |
| Distributions declared | (0.33) | (0.35) |
| **Net asset value, end of period** | $14.66 | $14.92 |
| Total return based on NAV<sup>(3)</sup> | 1.19% | 3.12% |
| Common shares outstanding, end of period | 29313127 | 24096013 |
| Weighted average shares outstanding | 27942796 | 23977487 |
| Net assets, end of period | $429585 | $359573 |
| **Ratio/Supplemental data:** |  |  |
| Ratio of net investment income (loss) to average net assets | 8.79% | 9.78% |
| Ratio of expenses to average net assets | 12.77% | 12.23% |
| Ratio of expenses (before management fees, incentive fees and interest and <br>financing expenses) to average net assets<br>| 1.64% | 1.97% |
| Weighted average debt outstanding | $510104 | $371759 |
| Total debt outstanding | $584982 | $451982 |
| Asset coverage ratio<sup>(4)</sup> | 221.5% | 244.1% |
| Portfolio turnover<sup>(5)</sup> | 5% | 13% |

---

(1)The per share data were derived by using the weighted average shares from the date of the first issuance of shares,

through the three months ended March 31, 2026 and March 31, 2025.

(2)Increase (decrease) was due to the offering price of subscriptions during the period (See note 9).

(3)Total return was based upon the change in net asset value per share between the opening and ending net assets per

share and the issuance of common stock in the period. Total return is not annualized.

(4)On September 30, 2024, the Company received exemptive relief from the SEC allowing the Company to modify the

asset coverage requirement under the 1940 Act to exclude the SBA-guaranteed debentures from this calculation. The

inclusion of unfunded commitments in the calculation of the asset coverage ratio would not cause us to be below the

required amount of regulatory coverage.

(5)Portfolio turnover is calculated using the lesser of year-to-date sales and principal repayments or year-to-date

purchases over the average of the total investments at fair value.

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**Note 12. Subsequent Events**

The Company's management evaluated subsequent events through the date of issuance of the consolidated financial

statements. Other than the subsequent events disclosed below, no subsequent events occurred during such period that

would require disclosure in, or would be required to be recognized in, the consolidated financial statements of the

Company.

As of the date of this Report, the Company repaid $97.5 million of outstanding principal on the ING Credit Facility and

borrowed an additional amount of $32.0 million. As of the date of this Report, the outstanding principal balance on the

ING Credit Facility is $224.5 million.

![](ls-20260331_g2.gif)

<sup>10</sup> We define "Working Class," based on the definition of low- to moderate-income ("LMI") under the Community

Reinvestment Act of 1977, as an individual, family or household whose income is less than 80% of the Area Median

Income as reported by the Federal Financial Institutions Examination Council at https://www.ffiec.gov/Medianincome.htm.

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

*The following discussion and other parts of this report contain forward-looking information that involves risks and* 

*uncertainties. References to "we," "us," "our," and the "Company," means Lafayette Square USA, Inc., unless otherwise* 

*specified. The discussion and analysis contained in this section refers to our financial condition, results of operations and* 

*cash flows. The information contained in this section should be read in conjunction with the consolidated financial* 

*statements and the related notes appearing elsewhere in this report. Please see "Cautionary Statement Regarding* 

*Forward-Looking Statements" for a discussion of the uncertainties, risks and assumptions associated with this discussion* 

*and analysis. Our actual results could differ materially from those anticipated by such forward-looking information due to* 

*factors discussed under "Cautionary Statements Regarding Forward-Looking Statements" appearing elsewhere in this* 

*report.*

**Overview**

Lafayette Square USA, Inc. is an externally managed, closed-end, non-diversified management investment company that

provides capital to middle market businesses located in or employing Working Class<sup>10</sup> American communities. We

generate revenue primarily through interest income on debt investments and, to a lesser extent, capital gains and fee

income. We are externally managed by the Adviser and have elected to be regulated as a business development company

under the Investment Company Act of 1940, as amended, and to be treated as a regulated investment company under

Subchapter M of the IRC.

We focus on lending to middle market businesses located in, or employing Working Class American communities, with the

goal of helping those businesses to enhance their returns while creating and preserving jobs and stimulating economic

growth across the United States. Our investment strategy is informed by longstanding federal regulatory frameworks, most

notably the Small Business Investment Act of 1958, the Community Reinvestment Act of 1977, and the Small Business

Investment Incentive Act of 1980. Drawing on these frameworks, we have established Goal2030™, a set of measurable,

time-bound objectives that guide our capital allocation, portfolio construction, and engagement with portfolio companies.

We benefit from participation in certain government-licensed financing programs that we believe are not widely utilized

across the private credit market — specifically, long-term, fixed-rate leverage through SBA-guaranteed debentures issued

through our two SBIC-licensed subsidiaries, LS SBIC LP, LS SSBIC LP, and government-backed credit guarantees

through our participation in the U.S. Department of Agriculture's OneRD Guarantee Loan Program. Our government

licensing extends beyond financing programs — we have also formed LS RBIC LP, a wholly owned subsidiary licensed by

the USDA as a Rural Business Investment Company under the Consolidated Farm and Rural Development Act, which

enables us to make debt and equity investments in eligible rural businesses. The RBIC does not currently benefit from

leverage.

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

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

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

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

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

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

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

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

• Cascade Region: Alaska, Idaho, Oregon and Washington

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

• Far West Region: California, Hawaii and Nevada

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

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

![](ls-20260331_g3.gif)

<sup>11</sup> "Working Class Jobs" means jobs employing Working Class People.

<sup>12</sup> "Working Class Areas" refers to low- and moderate-income ("LMI") areas, Empowerment Zones as defined in the

Empowerment Zones and Enterprise Communities Act of 1993, as amended, Opportunity Zones as defined in the U.S. Tax

Cut and Jobs Act of 2017, and/or areas targeted by a government entity for redevelopment or to revitalize or stabilize

designated disaster areas. LMI is defined under applicable CRA regulation as an individual income that is less than 80% of

the area median income ("AMI") or a median family income that is less than 80% in a census tract as reported by the

Federal Financial Institutions Examination Council at https://www.ffiec.gov/Medianincome.htm, or a census tract

identified as low-to-moderate income by the Federal Financial Institutions Examination Council at https://

geomap.ffiec.gov/ffiecgeomap/. AMI is defined as the median family income for the metropolitan statistical area or

metropolitan division, if applicable, or if the person or census tract is located outside of a metropolitan statistical area, the

statewide non-metropolitan median family income.

<sup>13</sup> "Substantial Employer" means a portfolio company for which more than 50% of its workforce, measured by W-2 forms

or 1099 forms filed by workers with the Internal Revenue Service, consists of Working Class People.

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

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

Virginia and the District of Columbia

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

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

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

Our investment portfolio is managed by the Adviser, which is responsible for all origination, underwriting, structuring, and

portfolio monitoring activities. The Company has no employees. As of March 31, 2026, our portfolio consisted of 57

portfolio companies with total assets of approximately $1.03 billion. For a full description of our business, investment

strategy, and regulatory framework, see "Item 1. Business" in our Annual Report on Form 10-K for the year ended

December 31, 2025.

**Tracking Progress Towards Goal2030**<sup>™</sup>

The Company has established a series of important goals with respect to the portfolio companies in which we invest, which

we refer to as "Goal2030™". These include (1) increasing employment opportunities by assisting our portfolio companies

in creating and/or retaining 100,000 Working Class Jobs<sup>11</sup> and 150,000 jobs overall; (2) incentivizing at least 50% of our

borrowers to adopt third-party employee benefit services or human resources policy changes ("Managerial Assistance

Recommendations") and (3) encouraging economic growth in Working Class Areas<sup>12</sup> by investing at least 50% of our

assets in companies that are either located in Working Class Areas or are Substantial Employers<sup>13</sup> of Working Class

People. For a full description of Goal2030™ and the Company's investment strategy, see "Item 1. Business" in the

Company's Annual Report on Form 10-K for the year ended December 31, 2025.

To measure our progress towards these goals, we track the locations of our portfolio companies and the Working Class

status of their employees. We rely on information provided by our portfolio companies to track these metrics. We cannot

guarantee the accuracy of the information provided to us by our portfolio companies, and the metrics used by different

portfolio companies to calculate such information varies significantly. However, based on our analysis, we believe that

deployment of our capital and the adoption of Managerial Assistance Recommendations for our portfolio companies can

improve the lives of their employees as reflected through a variety of statistical measures.

The table below sets forth our cumulative progress towards reaching Goal2030<sup>™</sup> as of March 31, 2026:

---

| | | |
|:---|:---|:---|
| **Company Goal2030**<sup>™</sup> **Goal** | **March 31, 2026** | **March 31, 2025** |
| Help businesses create / retain <br>150,000 jobs (with 100,000 being <br>Working Class Jobs)<br>| 33,541 total employees<br>18,829 Working Class People <br>employees<br>| 22,786 total employees<br>10,572 Working Class People <br>employees<br>|

---

![](ls-20260331_g4.gif)

<sup>14</sup> Includes all portfolio companies that have adopted Managerial Assistance Recommendations since the inception of the

BDC.

<sup>15</sup> Includes all portfolio companies that have adopted Managerial Assistance Recommendations since the inception of the

BDC. Beginning with the period ending March 31, 2025 only debt investments are included in the lead agent calculation

methodology. In previous periods, both debt and equity investments were included in the denominator of this calculation.

The denominator includes now only includes debt investments where Lafayette Square acts as lead agent, as the lead agent

role relates specifically to debt investments. The numerator reflects the number of such portfolio companies that have

adopted Managerial Assistance Recommendations.

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---

| | | |
|:---|:---|:---|
| 50% borrowers adopting Managerial <br>Assistance Recommendations<br>| 64.5% of the transactions (lead agent)<br>36.5% of our overall Portfolio <br>Companies<sup>14</sup><br>| 48.0% of the transactions (lead agent)<br>30.2% of our overall Portfolio <br>Companies<sup>15</sup><br>|
| 50% borrowers either located in <br>Working Class Areas or are <br>Substantial Employers of Working <br>Class People<br>| 59.2% of the transactions (lead agent)<br>54.3% of our overall Portfolio <br>Companies<br>| 51.5% of the transactions (lead agent)<br>51.6% of our overall Portfolio <br>Companies<br>|

---

We also track human capital outcomes across our portfolio companies, including employee turnover and participation in

medical care and retirement benefits. Detailed human capital metrics and related data are available on our website at

www.lafayettesquarebdc.com/results.

**Investment Objective and Strategy**

Our investment objective is to generate favorable risk-adjusted returns, consisting primarily of current income and, to a

lesser extent, capital appreciation. We invest primarily in first and second lien senior secured loans and, to a lesser extent,

in subordinated and mezzanine loans and equity and equity-like securities, including common stock, preferred stock and

warrants. Our debt investments typically bear floating interest rates and generally include financial maintenance covenants

and comprehensive collateral packages.

We focus on non-sponsored middle market companies with annual revenues between $10 million and $1 billion and

EBITDA between $10 million and $100 million, although we may invest in larger or smaller companies. We originate

investments primarily through direct engagement with business owners and management teams, supported by data and

analytics technology that integrates company-level information with place-based socioeconomic data to identify investment

opportunities, support underwriting decisions, and monitor portfolio performance. We also may purchase interests in loans

or other instruments through secondary market transactions.

**Key Components of Operations**

***Expenses***

We expect our primary annual operating expenses to include advisory fees and the reimbursement of expenses under our

Investment Advisory Agreement and our Administration Agreement, respectively. We also bear other expenses, which

include:

• our initial organization costs and operating costs incurred prior to the filing of our election to be regulated as a

BDC (in connection with our formation and the initial closing of the private offering of shares of our Common

Stock);

• the costs associated with our private offering and any subsequent offerings of our securities;

• calculating individual asset values and our net asset value (including the cost and expenses of third-party valuation

services);

• out-of-pocket expenses, including travel expenses, incurred by the Adviser, or members of its investment team, or

payable to third parties, performing due diligence on prospective portfolio companies, dead deal or broken deal

expenses and, if necessary, enforcing our rights;

• certain costs and expenses relating to distributions paid by us;

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• administration and related expenses payable under the Administration Agreement;

• fees and expenses associated with marketing efforts, including attendance at investment conferences and similar

events

• debt service and other costs of borrowings or other financing arrangements;

• the allocated costs incurred in connection with providing services to employees of portfolio companies (of the

type described in *Item I. "Business—Investment Strategy"*);

• amounts payable to third parties relating to, or associated with, making or holding investments;

• transfer agent and custodial fees;

• costs of hedging;

• commissions and other compensation payable to brokers or dealers;

• federal and state registration fees;

• any stock exchange listing fees and fees payable to rating agencies;

• the cost of effecting any sales and repurchases of our Common Stock and other securities;

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

• independent director fees and expenses;

• costs of preparing consolidated financial statements and maintaining books and records, costs of preparing tax

returns, costs of compliance with SOX, and attestation and costs of filing reports or other documents with the SEC

(or other regulatory bodies) and other reporting and compliance costs, including registration and listing fees, and

the compensation of professionals responsible for the preparation or review of the foregoing;

• the costs of any reports, proxy statements or other notices to our stockholders (including printing and mailing

costs), the costs of any stockholders' meetings and the compensation of investor relations personnel responsible

for the preparation of the foregoing and related matters;

• the costs of specialty and custom software expense for monitoring risk, compliance and overall investments;

• our fidelity bond;

• any necessary insurance premiums;

• extraordinary expenses (such as litigation or indemnification payments or amounts payable pursuant to any

agreement to provide indemnification entered into by the Company);

• direct fees and expenses associated with independent audits, agency, consulting and legal costs; costs of winding

up;

and other expenses incurred by either the Administrator or us in connection with administering our business, including

payments under the Administration Agreement based upon our allocable portion of the compensation paid to our Chief

Financial Officer and Chief Compliance Officer and their respective staffs. We also include the cost of providing

managerial assistance upon request to portfolio companies, and reimbursements of third-party expenses incurred by the

Administrator in carrying out its administrative services, including providing assistance in accounting, legal, compliance,

operations, technology, internal audit, investor relations, and loan agency services (including any internal and third party

service providers and/or software solutions related to the foregoing), and being responsible for the financial records that

we are required to maintain and preparing reports to our stockholders and reports filed with the SEC. In addition, our

Administrator assists us in determining and publishing our net asset value, overseeing the preparation and filing of our tax

returns and the printing and dissemination of reports to our stockholders, our internal control assessment under the

Sarbanes-Oxley Act, and generally overseeing the payment of our expenses and the performance of administrative and

professional services rendered to us by others. We expect our general and administrative expenses to be relatively stable or

to decline as a percentage of total assets during periods of asset growth and to increase proportionally when our asset value

declines.

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

Support Agreement") with the Adviser. The Adviser may elect to pay certain of our expenses on our behalf (each, an

"Expense Payment"), provided that no portion of the payment will be used to pay any of our interest expense or

shareholder servicing and/or distribution fees. Any Expense Payment that the Adviser has committed to pay must be paid

by the Adviser to us in any combination of cash or other immediately available funds no later than 45 days after such

commitment was made in writing, and/or offset against amounts due from us to the Adviser or its affiliates. Our obligation

to make a Reimbursement Payment will automatically become a liability of ours on the last business day of the applicable

calendar quarter, except to the extent the Adviser has waived its right to receive such payment for the applicable quarter.

As of March 31, 2026 and December 31, 2025, we had no Unreimbursed Expense Payable under the Expense Support

Agreement.

***Leverage***

The amount of leverage we use in any period depends on a number of factors, including cash on-hand available for

investing, the cost of financing and general economic and market conditions. Prior to the Small Business Credit

Availability Act being signed into law, a BDC generally was not permitted to incur indebtedness unless immediately after

such borrowing it has an asset coverage for total borrowings of at least 200%. The Small Business Credit Availability Act,

signed into law on March 23, 2018, contains a provision that grants a BDC the option, subject to certain conditions and

disclosure obligations, to reduce the asset coverage requirement to 150%. In April 2021, our Board and initial stockholder

approved the reduced asset coverage ratio.

On September 30, 2024, we received an exemptive relief from the SEC to permit us to exclude the debt of the LS SBICs

that are guaranteed by the SBA from the 150% asset coverage ratio we are required to maintain under the 1940 Act. With

this exemptive relief, we have increased capacity to fund up to $175.0 million (the maximum amount of SBA-guaranteed

debentures an SBIC may currently have outstanding once certain conditions have been met) of investments in each of LS

SBIC LP and LS SSBIC LP with SBA-guaranteed debentures in addition to being able to fund investments with

borrowings up to the maximum amount of debt that the 150% asset coverage ratio limitation would allow us to incur.

In support of Goal2030™, we have structured the ING Credit Facility to incorporate pricing incentives tied to progress

toward our key performance indicators. Following completion of the annual benchmark review for the year ended

December 31, 2025, as verified by an independent third-party auditor, the Company met two of the three applicable

Goal2030™ benchmarks. Effective May 6, 2026, the applicable interest rate margin under the ING Credit Facility will be

reduced by 8 basis points and the commitment fee will be reduced by 1.6 basis points. We expect these reductions to

contribute to lower interest expense under the ING Credit Facility during the applicable period.

**Portfolio and Investment Activity**

The following table summarizes our portfolio and investment activity during the three months ended March 31, 2026 and

March 31, 2025 (information presented herein is at amortized cost in thousands, except per share data, unless otherwise

indicated):

---

| | | |
|:---|:---|:---|
| | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Total Investments, beginning of period | $790441 | $556863 |
| New investments purchased | 72626 | 189022 |
| Net accretion of discount on investments | 1162 | 614 |
| Net realized gains (losses) on investments |  | 58 |
| Investments sold or repaid | (36572) | (80555) |
| **Total Investments, end of period** | $827657 | $666002 |
| Portfolio companies, at beginning of period | 54 | 34 |
| Number of new portfolio companies | 4 | 8 |
| Number of exited portfolio companies | (1) |  |
| **Portfolio companies, at end of period** | 57 | 42 |

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As of March 31, 2026 and December 31, 2025, the Company's investments consisted of the following (dollar amounts in

thousands, except per share data, unless otherwise indicated):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| First lien senior secured loans | $715357 | 86.5% | $710584 | 86.5% |
| Equity | 56609 | 6.8% | 55939 | 6.8% |
| Preferred equity | 50713 | 6.1% | 50544 | 6.1% |
| Subordinated debt | 3478 | 0.4% | 3493 | 0.4% |
| Convertible note | 1500 | 0.2% | 1500 | 0.2% |
| Warrants |  | —% |  | —% |
| **Total** | $827657 | 100.0% | $822060 | 100.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| First lien senior secured loans | $690548 | 87.4% | $689683 | 87.4% |
| Equity | 48364 | 6.1% | 47880 | 6.1% |
| Preferred equity | 46604 | 5.9% | 46713 | 5.9% |
| Subordinated debt | 3425 | 0.4% | 3437 | 0.4% |
| Convertible note | 1500 | 0.2% | 1500 | 0.2% |
| Warrants |  | —% |  | —% |
| **Total**  | $790441 | 100.0% | $789213 | 100.0% |

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The tables below describe investments by industry composition based on fair value as of March 31, 2026 and

December 31, 2025 (dollar amounts in thousands, except per share data, unless otherwise indicated):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value**  | **Fair Value**  |
| Professional Services | $84983 | 10.3% | $85575 | 10.4% |
| Commercial Services & Supplies | 70585 | 8.6% | 70705 | 8.7% |
| Hotels, Restaurants & Leisure | 60635 | 7.3% | 59892 | 7.3% |
| Construction & Engineering | 55137 | 6.7% | 55290 | 6.7% |
| Specialized Consumer Services | 54754 | 6.6% | 55249 | 6.7% |
| Health Care Providers & Services | 52267 | 6.3% | 52479 | 6.4% |
| Independent Power & Renewable | 48362 | 5.8% | 48500 | 5.9% |
| Road & Rail | 56448 | 6.8% | 47744 | 5.8% |
| IT Services | 42559 | 5.1% | 42316 | 5.1% |
| Diversified Financial Services | 41016 | 5.0% | 41191 | 5.0% |
| Media | 37560 | 4.5% | 40481 | 4.9% |
| Transportation Infrastructure | 31686 | 3.8% | 31993 | 3.9% |
| Real Estate Management & Development | 30280 | 3.7% | 29573 | 3.6% |
| Health Care Equipment & Services | 23183 | 2.8% | 22945 | 2.8% |
| Aerospace & Defense | 23132 | 2.8% | 22921 | 2.8% |
| Diversified Consumer Services | 21987 | 2.7% | 22077 | 2.7% |
| Food Products | 20610 | 2.5% | 20667 | 2.5% |
| Insurance | 18000 | 2.2% | 18000 | 2.2% |
| Diversified Telecommunication Services | 15852 | 1.9% | 15832 | 1.9% |
| Electrical Equipment | 12367 | 1.5% | 12458 | 1.5% |
| Food & Staples Retailing | 9894 | 1.2% | 9825 | 1.2% |
| Health Care Distributors | 7793 | 0.9% | 7822 | 1.0% |
| Diversified Real Estate Activities | 5193 | 0.6% | 5136 | 0.6% |
| Water Utilities | 3374 | 0.4% | 3389 | 0.4% |
| **Total**  | $827657 | 100.0% | $822060 | 100.0% |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Amortized Cost** | **Fair Value** | **Fair Value** |
| Professional Services | $81543 | 10.3% | $82156 | 10.4% |
| Commercial Services & Supplies | 72767 | 9.3% | 72927 | 9.2% |
| Hotels, Restaurants & Leisure | 65740 | 8.3% | 65974 | 8.4% |
| Construction & Engineering | 55085 | 7.0% | 55241 | 7.0% |
| Specialized Consumer Services | 54727 | 6.9% | 55080 | 7.0% |
| Road & Rail | 52124 | 6.6% | 45140 | 5.7% |
| Media | 35757 | 4.5% | 39346 | 5.0% |
| Diversified Financial Services | 37532 | 4.7% | 37788 | 4.8% |
| Health Care Providers & Services | 37589 | 4.8% | 37723 | 4.8% |
| IT Services | 36875 | 4.7% | 37222 | 4.7% |
| Independent Power & Renewable | 36338 | 4.6% | 36499 | 4.6% |
| Transportation Infrastructure | 31671 | 4.0% | 31994 | 4.1% |
| Real Estate Management & Development | 27486 | 3.5% | 26934 | 3.4% |
| Health Care Equipment & Services | 23210 | 2.9% | 22990 | 2.9% |
| Diversified Consumer Services | 22028 | 2.8% | 22127 | 2.8% |
| Aerospace & Defense | 19657 | 2.5% | 19512 | 2.5% |
| Insurance | 18000 | 2.3% | 18000 | 2.3% |
| Food Products | 16924 | 2.1% | 16966 | 2.1% |
| Diversified Telecommunication Services | 15872 | 2.0% | 15870 | 2.0% |
| Electrical Equipment | 12441 | 1.6% | 12538 | 1.6% |
| Gas Utilities | 10661 | 1.3% | 10675 | 1.4% |
| Food & Staples Retailing | 9888 | 1.3% | 9986 | 1.3% |
| Health Care Distributors | 7802 | 1.0% | 7842 | 1.0% |
| Diversified Real Estate Activities | 4343 | 0.5% | 4286 | 0.5% |
| Water Utilities | 3381 | 0.4% | 3397 | 0.4% |
| Human Resource & Employment Services | 1000 | 0.1% | 1000 | 0.1% |
| **Total** | $790441 | 100.0% | $789213 | 100.0% |

---

Studio Lafayette, LLC was reclassified from Human Resource & Employment Services to Professional Services in the

current period. Human Resource & Employment Services is therefore presented in the December 31, 2025 comparative

period only. See footnote (33) to the Consolidated Schedule of Investments.

The weighted average yields at amortized cost and fair value of our portfolio as of March 31, 2026 and December 31, 2025

were as follows (dollar amount in thousands, except per share data, unless otherwise indicated):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized Cost** | **Fair Value** | **Amortized Cost** | **Fair Value** |
| First lien senior secured loans | 10.6% | 10.7% | 11.0% | 11.0% |
| Subordinated debt | 14.2% | 14.1% | 14.2% | 14.1% |
| Convertible note | 10.0% | 10.0% | 10.0% | 10.0% |
| **Weighted Average Yield**<sup>(1)</sup> | 10.6% | 10.7% | 10.5% | 10.6% |

---

(1) The weighted average yield of our portfolio does not represent the total return to our stockholders.

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---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Number of portfolio companies | 57 | 54 |
| Percentage of performing debt bearing a floating rate <sup>(1)</sup> | 84.6% | 85.4% |
| Percentage of performing debt bearing a fixed rate <sup>(1)(2)</sup> | 15.4% | 14.6% |
| Weighted average spread over SOFR of all accruing floating rate <br>investments | 6.6% | 6.5% |
| Weighted average EBITDA (in millions) <sup>(3)</sup> | $19.7 | $20.0 |
| Weighted average leverage (net debt/EBITDA)<sup>(4)</sup> | 3.9x | 3.6x |
| Weighted average interest coverage<sup>(4)</sup> | 2.6x | 2.6x |

---

(1) Measured as a percentage of total portfolio investments at fair value. Excludes equity-like investments and debt

investments, if any, placed on non-accrual.

(2) Includes equity-like investments with coupon-bearing and income-generating structure notes and preferred stock

investments, if applicable.

(3) Figures are based on portfolio company financial statements available to the Company at period end.

(4) Net debt includes debt that ranks both senior and equally with the tranche of debt owned by us but excludes debt

that is legally and contractually subordinated in right of payment to debt owned by us. Weighted average net debt to

EBITDA is weighted based on the fair value of our debt investments, excluding investments where net debt to

EBITDA may not be the appropriate measure of credit risk. Weighted average interest coverage is weighted based on

the fair value of our performing debt investments, excluding investments where interest coverage may not be the

appropriate measure of credit risk.

During the quarter ended March 31, 2026, we received aggregate proceeds of $10.7 million from the full repayment of one

portfolio company debt investment. This repayment represented a full exit from the respective portfolio company. The

following table summarizes our investment dispositions during the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Portfolio Company** | **Region** | **Industry** | **Payoff** <br>**Date**<br>| **Cash** <br>**proceeds**<br>| **Realized G/L** |
| **Quarter Ended March 31, 2026** | **Quarter Ended March 31, 2026** | **Quarter Ended March 31, 2026** | **Quarter Ended March 31, 2026** | **Quarter Ended March 31, 2026** | **Quarter Ended March 31, 2026** |
| TCFIII OWL BUYER LLC | Great Lakes | Gas Utilities | 3/6/2026 | $10703 | $— |
| **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
| Global K9 Companies LLC | Southeast | Commercial Services & <br>Supplies<br>| 2/12/2025 | $22434 | $— |
| Dartpoints Operating Company LLC | Gulf Coast | IT Services | 4/24/2025 | $3489 | $51 |
| Cafe Zupas, L.C. | Four Corners | Hotels, Restaurants & <br>Leisure<br>| 6/4/2025 | $11733 | $— |
| H.W. Lochner Inc. | Great Lakes | Transportation <br>Infrastructure<br>| 7/23/2025 | $7654 | $119 |
| M&S Acquisition Corporation | Far West | Professional Services | 12/23/2025 | $30567 | $— |
| **Total** |  |  |  | **$75877** | **$170**<sup>(1)</sup> |

---

All investment dispositions during the period ended March 31, 2026 and December 31, 2025 consisted of full repayments

of first lien senior secured floating-rate debt investments, with the exception of Global K9 Companies LLC, for which the

term loan was repaid while an equity position is retained. No dispositions during either period resulted from credit

deterioration or distressed sales.The exited investments spanned six industries across five geographic regions, reflecting the

diversification of the portfolio.

Portfolio turnover, calculated as the lesser of purchases or dispositions divided by the average fair value of the investment

portfolio, was approximately 5% for the quarter ended March 31, 2026.

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(1) Reflects net realized gains from full position exits only and does not include realized gains or losses from other

portfolio activity, including scheduled principal paydowns and other investment transactions. See Note 4 to the

consolidated financial statements for total net realized gains (losses) on investments.

Ongoing monitoring and risk management of each asset is conducted by the Adviser's Portfolio Monitoring team under the

supervision of our Chief Risk Officer. The Portfolio Monitoring team is separate and distinct from the Adviser's

investment team, and has as its primary responsibilities to:

• formally monitor portfolio companies post-investment on an ongoing basis;

• perform quarterly valuations of all assets in partnership with third-party valuation agent(s);

• maintain and update internal and external asset ratings;

• oversee BDC-level monitoring; and

• lead amendment, "work out," and restructurings processes.

Portfolio Monitoring monitors the financial trends of each portfolio company to determine if it is meeting its respective

business plan and to assess the appropriate course of action with respect to investments in each portfolio company.

Portfolio Monitoring has several methods of evaluating and monitoring the performance and fair value of our investments,

which may include the following:

• periodic and regular contact with portfolio company management and, if appropriate, the financial or strategic

sponsor, to discuss financial position, requirements and variants from approved budgets and internal projections;

• assessment of performance relative to business plan and key operating metrics and compliance with financial

covenants;

• assessment of performance relative to industry benchmarks or portfolio comparables, if any;

• attendance at and participation in board meetings and lender calls; and

• review of monthly, quarterly and annual audited financial statements and financial projections of portfolio

companies.

As part of the monitoring process, our Adviser employs an investment rating system to categorize our investments. In

addition to various risk management and monitoring tools, our Adviser rates the credit risk of all investments on a scale of

1 to 5 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio

investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of origination or

acquisition), although it may also take into account the performance of the portfolio company's business, the collateral

coverage of the investment and other relevant factors. The rating system is as follows:

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---

| | |
|:---|:---|
| **<u>Investment Rating</u>** | **<u>Description</u>** |
| 1 | Involves the least amount of risk to our initial cost basis. The borrower is performing above <br>expectations, and the trends and risk factors for this investment since the time of origination <br>or acquisition are generally favorable which may include the performance of the portfolio <br>company or a potential exit.<br>|
| 2 | Involves an acceptable level of risk that is similar to the risk at the time of origination or <br>acquisition. The borrower is generally performing as expected and the risk factors are neutral <br>to favorable. All investments or acquired investments in new portfolio companies are initially <br>assessed a rating of 2.<br>|
| 3 | Involves a borrower performing below expectations and indicates that the loan's risk has <br>increased since origination or acquisition. The borrower could be out of compliance with debt <br>covenants; however loan payments are generally not past due.<br>|
| 4 | Involves a borrower performing materially below expectations and indicates that the loan's <br>risk has increased materially since origination or acquisition. In addition to the borrower <br>being generally out of compliance with debt covenants, loan payments may be past due (but <br>generally not more than 120 days past due)<br>|
| 5 | Involves a borrower performing substantially below expectations and indicates that the loan's <br>risk has increased substantially since origination or acquisition. Most or all of the debt <br>covenants are out of compliance and payments are substantially delinquent. Loans rated 5 are <br>not anticipated to be repaid in full and we will reduce the fair market value of the loan to the <br>amount we anticipate will be recovered.<br>|

---

The following table shows the distribution of the Company's investments on the 1 to 5 internal risk rating scale as of

March 31, 2026 and December 31, 2025 (dollar amounts in thousands, except per share data, unless otherwise indicated):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| <br>**Investment Rating** | **Investments at** <br>**Fair Value**<br>| **Percentage of** <br>**Total Investments**<br>| **Investments at** <br>**Fair Value**<br>| **Percentage of** <br>**Total Investments**<br>|
| 1 | $— | —% | $— | —% |
| 2 | 701537 | 85.3% | 703603 | 89.2% |
| 3 | 72779 | 8.9% | 40470 | 5.1% |
| 4 | 47744 | 5.8% | 45140 | 5.7% |
| 5 |  |  |  |  |
| **Total** | $822060 | 100.0% | $789213 | 100.0% |

---

**Critical Accounting Policies and Estimates**

The preparation of our consolidated financial statements and related disclosures in conformity with U.S. GAAP requires

management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and

expenses. Actual results could materially differ from those estimates. We have identified the following items as critical

accounting policies.

***Fair Value Measurements***

We value investments for which market quotations are readily available at their market quotations. However, a readily

available market value is not expected for many of the investments in our portfolio, and we value these portfolio

investments at fair value as determined in good faith by the Adviser and our valuation policy and process.

The valuation process is a multi-step endeavor, which includes the following:

• the quarterly valuation process commences with each portfolio company or investment being initially evaluated by

the investment professionals of the Adviser responsible for the monitoring of the portfolio investment;

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• the Adviser's Valuation Committee reviews the valuations provided by the independent third-party valuation firm

(other than immaterial investments, which are internally valued quarterly unless otherwise deemed appropriate by

the Valuation Committee, and subsequently corroborated by an independent valuation firm on an annual basis)

and develops a valuation recommendation;

• the Adviser's Valuation Committee reviews each valuation recommendation to confirm they have been calculated

in accordance with our valuation policy and compares such valuations to the independent valuation firms'

valuation ranges to ensure the Adviser's valuations are reasonable;

• the Adviser's Valuation Committee then determines fair value marks for each of our portfolio investments; and

• the Board and Audit Committee periodically reviews the valuation process and provides oversight in accordance

with the requirements of Rule 2a-5 under the 1940 Act.

The Company applies Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value

Measurement (ASC 820), as amended, which establishes a framework for measuring fair value in accordance with U.S.

GAAP and required disclosures of fair value measurements. ASC 820 determines fair value to be the price that would be

received for an investment in a current sale, which assumes an orderly transaction between market participants on the

measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market

(which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. In accordance

with ASC 820, the Company considers its principal market to be the market that has the greatest volume and level of

activity. ASC 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in

determination of fair value.

The three-tier hierarchy of inputs is summarized below.

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

date.

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

liabilities in active markets/exchanges or prices quoted for identical or similar assets or liabilities in markets that

are not active, and fair value is determined through the use of models or other valuation methodologies.

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

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

judgment and estimation.

***Investments***

Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the

net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification

method without regard to unrealized appreciation or depreciation previously recognized, and includes investments charged

off during the period, net of recoveries. Net change in unrealized appreciation or depreciation on investments as presented

in the Consolidated Statements of Operations in Part I, Item 1 of this Form 10-Q reflects the net change in the fair value of

investments, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are

realized.

***Revenue Recognition***

*Investment and Related Investment Income*

The Company records interest income, including amortization of premium and accretion of discount on the accrual basis to

the extent that such amounts are expected to be collected. The Company records amortized or accreted discounts or

premiums as interest income using the effective interest method or straight-line interest method, as applicable, and adjusted

only for material amendments or prepayments. Dividend income, which represents dividends from equity investments and

distributions from subsidiaries, if any, is recognized on an accrual basis to the extent that the Company expect to collect

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

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

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collection of PIK interest may be deferred until the time of debt principal repayment. Origination fees received are

recorded as deferred income and recognized as investment income over the term of the loan. Upon prepayment of a loan,

any unamortized origination fees are recorded as investment income. The Company receives certain fees from portfolio

companies, which are non-recurring in nature. Such fees include loan prepayment penalties, structuring fees, covenant

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

*Non-accrual loans* 

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

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

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

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

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

are recognized as income or applied to principal depending upon management's judgment. Non-accrual loans are restored

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

remain current. As of March 31, 2026, we had one investment partially on non-accrual status. The non-accrual portion of

this investment represents 1.0% of total investments at fair value. As of December 31, 2025, we had one investment

partially on non-accrual status. The non-accrual portion of this investment represents 0.9% of total investments at fair

value.

***Income Taxes*** 

The Company has elected to be treated as a RIC under Subchapter M of the IRC and intends to maintain such election in

future taxable years. However, there is no guarantee that the Company will qualify to make such an election for any future

taxable year. In order to qualify and be subject to tax as a RIC, among other things, the Company is required to meet

certain source of income and asset diversification requirements and timely distribute dividends for U.S. federal income tax

purposes to its stockholders of an amount at least equal to 90% of its investment company taxable income, as defined by

the IRC and determined without regard to any deduction for dividends paid, for each tax year. As a RIC, the Company

would intend to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S.

federal income taxes with respect to all income distributed to its stockholders.

The Company is subject to a nondeductible 4% U.S. federal excise tax on its undistributed income, unless it timely

distributes (or is deemed to have timely distributed) an amount equal to the sum of (1) 98% of ordinary income for each

calendar year, (2) 98.2% of the amount by which capital gains exceeds capital losses (adjusted for certain ordinary losses)

for a one-year period ending on October 31 of the calendar year, and (3) any income and gains recognized, but not

distributed, from the previous years. While the Company intends to distribute any income and capital gains to avoid

imposition of this 4% U.S. federal excise tax, it may not be successful in avoiding entirely the imposition of this tax. In that

case, the Company will be liable for the tax only on the amount by which it does not meet the distribution requirement.

The Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes ("ASC Topic 740"). ASC

Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in

consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing

the Company's tax returns to determine whether the tax positions are "more-likely-than-not" to be sustained by the

applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be

recorded as a tax expense or tax benefit in the current year. It is the Company's policy to recognize accrued interest and

penalties related to uncertain tax benefits in income tax expense. There were no material unrecognized net tax benefits or

unrecognized net tax liabilities related to uncertain income tax positions as of and through March 31, 2026.

**Results of Operations**

The following diagram illustrates the composition of the Company's investment income, operating expenses, and resulting

net investment income for the three months ended March 31, 2026 and March 31, 2025:

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![I&E_26.jpg](ls-20260331_g5.jpg)

![I&E_25.jpg](ls-20260331_g6.jpg)

The following table represents the operating results for the three months ended March 31, 2026 and March 31, 2025 (dollar

amounts in thousands, except per share data, unless otherwise indicated):

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Total investment income | $22349 | $19315 |
| Total expenses, including expense support reimbursement | (13251) | (10725) |
| Net investment income (loss) | 9098 | 8590 |
| Net realized gains (losses) on investments |  | 58 |
| Net change in unrealized gains (losses) | (4369) | 2499 |
| **Net increase (decrease) in net assets resulting from operations** | $4729 | $11147 |

---

***Investment Income***

The composition of the Company's investment income was as follows (dollar amounts in thousands, except per share data,

unless otherwise indicated):

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| **Investment income** |  |  |
| Interest income | $21041 | $17150 |
| Fee income | 380 | 727 |
| Interest from cash and cash equivalents | 928 | 1438 |
| **Total investment income** | $22349 | $19315 |

---

The increase in total investment income from $19.3 million for the three months ended March 31, 2025 to $22.3 million for

the three months ended March 31, 2026 was primarily driven by our deployment of capital and growth in average invested

balance over the period. New investments during the period consisted primarily of directly originated, first lien senior

secured loans to non-sponsored middle market borrowers across our Target Regions, consistent with our investment

strategy. The growth in investment income was partially offset by a 10 basis point expansion in the weighted average

spread over SOFR, reflecting broader private credit market conditions during the period.

*Expenses*

The following table summarizes the Company's expenses for the three months ended March 31, 2026 and March 31, 2025

(dollar amounts in thousands, except per share data, unless otherwise indicated):

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Interest and financing expenses | $8054 | $6015 |
| Management fee | 1882 | 1478 |
| Incentive fee | 1603 | 1514 |
| General and administrative expenses | 618 | 250 |
| Administrative services fee | 500 | 450 |
| Professional fees | 469 | 309 |
| Directors' fees | 125 | 80 |
| Income tax expense |  | 629 |
| **Total expenses** | $13251 | $10725 |

---

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Total expenses before expense support increased to $13.3 million for the three months ended March 31, 2026 from $10.7

million for the three months ended March 31, 2025. The Company did not receive expense support from the Adviser during

the three months ended March 31, 2026 or March 31, 2025.

Interest and financing expenses increased to $8.1 million for the three months ended March 31, 2026 compared to $6.0

million for the three months ended March 31, 2025 primarily due to an expansion of funding sources from SBA-guaranteed

debentures, the ING Credit Facility, and Notes.

The increase in management fees for the three months ended March 31, 2026 when compared to the three months ended

March 31, 2025 was driven by our deployment of capital and an increase in average gross assets.

Incentive fees increased to $1.6 million for the three months ended March 31, 2026 when compared to $1.5 million for the

three months ended March 31, 2025 due to the increase in Net Investment Income. Refer to Note 6 Investment Advisory

Agreement of the Form 10-Q for a discussion of how the incentive fee is calculated.

Administrative services fee increased to $500 thousand for the three months ended March 31, 2026 from $450 thousand for

the three months ended March 31, 2025, reflecting a slight increase in the Company's allocable portion of overhead

compensation, office services and equipment under the Company's Administration Agreement commensurate with the

growth of the Company's asset base during the period.

General and administrative expenses, legal fees, and professional fees increased to $1.1 million during the three months

ended March 31, 2026 as compared to $0.6 million for the three months ended March 31, 2025 primarily driven by the

continued expansion of our investment portfolio and related operational infrastructure, in connection with independent

audit services, external legal services, third-party valuation services for our portfolio, insurance premiums, accounting,

financial preparation and reporting services, and fees paid to the placement agent for the additional commitment closes and

capital draws.

**Financial Condition, Liquidity and Capital Resources**

We generate cash primarily from the proceeds of any private placements of our Common Stock, from interest payments

and fees earned on our investments, and from principal repayments and proceeds from sales of our investments. Our

primary uses of cash include investments in portfolio companies, payments of our expenses and cash distributions to our

stockholders. From time to time, we may explore opportunities to enter into significant corporate control transactions

which, if consummated, could use a material amount of cash and/or require material incremental financing.

***Contractual Obligations***

We have entered into the Investment Advisory Agreement with our Adviser. Our Adviser agreed to serve as our investment

adviser in accordance with the terms of our Investment Advisory Agreement. Payments under our Investment Advisory

Agreement in each reporting period consist of the base management fee equal to a percentage of the value of our gross

assets as well as an incentive fee based on our performance.

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

advisory services to, the Company. The Board approved the renewal of the Investment Advisory Agreement on March 17,

2026. The Adviser is a registered investment adviser with the SEC. The Adviser receives fees for providing services,

consisting of two components, a base management fee and an incentive fee.

We define a "Liquidity Event" as any of: (1) a quotation or listing of our common stock on a national securities exchange,

including an initial public offering or (2) a Sale Transaction. A "Sale Transaction" means (a) the sale of all or substantially

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

transactions, including by way of merger, consolidation, recapitalization, reorganization, or sale of stock in each case for

consideration of either cash and/or publicly listed securities of the acquirer. Potential acquirers could include entities that

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

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*Base Management Fee*

The Management Fee is payable quarterly in arrears beginning in the period during the Initial Drawdown at an annual rate

of (i) prior to a Liquidity Event, 0.75%, and (ii) following a Liquidity Event, 1.0%, in each case of the average value of our

gross assets (gross assets equal the total assets of the Company as set forth on the Company's balance sheet) at the end of

the two most recently completed calendar quarters. No Management Fee is charged on committed but undrawn capital

commitments.

For the three months ended March 31, 2026 and March 31, 2025, the Company incurred Management Fees of $1.9 million

and $1.5 million, respectively. As of March 31, 2026 and December 31, 2025, there was $1.9 million and $1.8 million of

Management Fee payable to the Adviser, respectively.

*Incentive Fee*

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

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

Gains Fee"). For more information regarding the Income-Based Fee and the Capital Gains Fee, see Note 6 - Related Party

Agreements and Transactions.

For the three months ended March 31, 2026 and March 31, 2025, the Company incurred Income-Based Fee of $1.6 million

and $1.5 million, respectively. As of March 31, 2026 and December 31, 2025, $1.6 million and $1.5 million, respectively,

remained payable to the Adviser.

*Administration Agreement*

We have entered into an Administration Agreement with the Administrator pursuant to which the Administrator furnishes

us with administrative services necessary to conduct our day-to-day operations. The Administrator is reimbursed for

administrative expenses it incurs on our behalf in performing its obligations. Such costs are reasonably allocated to us on

the basis of assets, revenues, time records or other reasonable methods. We do not reimburse our Administrator for any

services for which it receives a separate fee.

If any of our contractual obligations discussed above were terminated, our costs may increase under any new agreements

that we enter into as replacements. We would also likely incur expenses in locating alternative parties to provide the

services we receive under our Investment Advisory Agreement and Administration Agreement.

For the three months ended March 31, 2026 and March 31, 2025, our expenses were paid by a related party of the Adviser

and will be reimbursed by us. As of March 31, 2026 and December 31, 2025, the total amount owed to the affiliates of the

Adviser is included in the Due to Affiliate line item in the Consolidated Statements of Assets and Liabilities.

For the three months ended March 31, 2026 and March 31, 2025, the Company incurred $500 and $450, respectively, in

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

Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, $0 and $0, respectively, were

unpaid and included in administrative services fee payable in the accompanying Consolidated Statements of Assets and

Liabilities. No administrative services fee was charged to the Company prior to the Company's commencement of

operations.

*Expense Support and Conditional Reimbursement Agreement*

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

Support Agreement") with the Adviser. The Adviser may elect to pay certain of our expenses on our behalf (each, an

"Expense Payment"), so long as no portion of the payment will be used to pay any interest expense or shareholder

servicing and/or distribution fees. Any Expense Payment that the Adviser has committed to pay must be paid by the

Adviser to us in any combination of cash or other immediately available funds no later than forty-five days after such

commitment was made in writing, and/or offset against amounts due from us to the Adviser or its affiliates.

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

accrued to our shareholders based on distributions declared with respect to record dates occurring in such calendar quarter

(the amount of such excess being hereinafter referred to as "Excess Operating Funds"), we will pay such Excess Operating

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Funds, or a portion thereof, to the Adviser until such time as all Expense Payments made by the Adviser to us within three

years prior to the last business day of such calendar quarter have been reimbursed. Any payments required to be made by

us will be referred to herein as a "Reimbursement Payment." "Available Operating Funds" means the sum of (i) our net

investment company taxable income (including net short-term capital gains reduced by net long-term capital losses), (ii)

our net capital gains (including the excess of net long-term capital gains over net short-term capital losses) and (iii)

dividends and other distributions paid to us on account of investments in portfolio companies (to the extent such amounts

listed in clause (iii) are not included under clauses (i) and (ii) above).

Our obligation to make a Reimbursement Payment shall automatically become a liability of ours on the last business day of

the applicable calendar quarter, except to the extent the Adviser has waived its right to receive such payment for the

applicable quarter.

As of March 31, 2026 and December 31, 2025, the Company has no Unreimbursed Expense Payable.

***Capital Resources and Borrowings***

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

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

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

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

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

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

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

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

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

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

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

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

March 31, 2026 and December 31, 2025, the Company's asset coverage ratio based on the aggregate amount outstanding of

senior securities was 221.5% and 220.8%, respectively.

Our financing facilities consist of the following (dollar amounts in thousands, except per share data, unless otherwise

indicated):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Aggregate**<br>**Principal** <br>**Amount** <br>**Available**<br>| **Principal** <br>**Amount** <br>**Outstanding**<br>| **Unused** <br>**Portion**<br>| **Aggregate**<br>**Principal** <br>**Amount** <br>**Available**<br>| **Principal** <br>**Amount** <br>**Outstanding**<br>| **Unused** <br>**Portion**<br>|
| Secured borrowings | $300000 | $289982 | $10018 | $300000 | $276982 | $23018 |
| SBA-Guaranteed <br>Debentures<br>| 290000 | 230000 | 60000 | 290000 | 230000 | 60000 |
| Note payable | 65000 | 65000 |  | 65000 | 65000 |  |
| **Total** | $655000 | $584982 | $70018 | $655000 | $571982 | $83018 |

---

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

Company's total debt for the three months ended March 31, 2026 and March 31, 2025 (dollar amounts in thousands, except

per share data, unless otherwise indicated):

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Interest expense | $7397 | $5599 |
| Non-usage fee <sup>(1)</sup> | 66 | 47 |
| Amortization of deferred financing costs | 591 | 369 |
| Weighted average interest rate <sup>(2)</sup> | 5.88% | 6.11% |
| Weighted average outstanding balance | $510104 | $371759 |

---

(1) Non-usage fee is applicable to the undrawn portion of the credit facilities.

(2) Weighted average interest rate is calculated as interest expense for the period, annualized, divided by the weighted

average outstanding balance for the period. Excludes non-usage fees and amortization of deferred financing costs, each

presented as separate line items in the table above.

The following chart compares the contractual maturity profile of the Company's investment portfolio against scheduled

debt maturities as of March 31, 2026.

![10-Q DataVis WAV Maturity.jpg](ls-20260331_g7.jpg)

(1) Investment Maturities: Represents the aggregate fair value of the BDC's debt investments maturing in each period,

based on contractual maturity dates as set forth in the Consolidated Schedule of Investments. Actual maturities may differ

from contractual maturities due to prepayments, extensions, defaults, or other factors. Maturity profiles are subject to

change and should not be viewed as indicative of future cash flows or liquidity.

(2) Debt Maturities: Represents the aggregate principal amount of the BDC's outstanding borrowings maturing in each

period, including the ING revolving credit facility, SBA-guaranteed debentures, and senior unsecured notes. Actual

repayment timing may differ from contractual maturity due to refinancing activity, early repayment, or amendments to

existing facilities. Debt maturity profiles are subject to change and should not be viewed in isolation.

**Credit Facilities**

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*ING Credit Facility*

On June 18, 2024, we entered into a Senior Secured Revolving Credit Agreement (as amended, restated, supplemented, or

otherwise modified from time to time, the "ING Credit Facility") with ING Capital, LLC, as Administrative Agent, Lead

Arranger, Bookrunner and Sustainability Structuring Agent.

On September 20, 2024, we entered into Amendment No. 1 to the Senior Secured Revolving Credit Agreement (the "First

Amendment") to the ING Credit Facility. The parties to the First Amendment include us, EverBank, N.A. as Lender, First-

Citizens Bank & Trust Company as Lender, Subsidiary Guarantors party thereto and ING Capital LLC, as Administrative

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

credit facility from $75 million to $150 million.

On December 12, 2024, we entered into a joinder agreement (the "First Lender Joinder Agreement"), under the accordion

feature in the ING Credit Facility pursuant to which the aggregate commitments under such facility increased from $150

million to $175 million. The parties to the First Lender Joinder Agreement include us, BankUnited, N.A., as additional

Lender, the Subsidiary Guarantors party to such agreement and the Administrative Agent.

On December 20, 2024, we entered into a joinder agreement (the "Second Lender Joinder Agreement") under the

accordion feature in the ING Credit Facility, pursuant to which aggregate commitments under such facility increased from

$175 million to $225 million. The parties to the Second Lender Joinder Agreement include us, Customers Bank, as

additional Lender, the Subsidiary Guarantors party to such agreement and the Administrative Agent.

On March 20, 2025, we entered into a commitment increase agreement (the "First Commitment Increase Agreement")

under the accordion feature in the ING Credit Facility pursuant to which aggregate commitments under such facility

increased from $225 million to $250 million. The parties to the First Commitment Increase Agreement include us, ING

Capital LLC, as additional Lender, the Subsidiary Guarantors party to such agreement and the Administrative Agent.

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

Amendment"), which amended the ING Credit Facility. The parties to the Second Amendment include us, the lenders party

to such agreement, Subsidiary Guarantors party to such amendment and ING Capital LLC, as Administrative Agent. The

Second Amendment provides for an increase of the accordion provision to permit increases in the total facility amount of

up to $300 million and permits us to enter into repurchase agreements in an aggregate nominal amount of up to $30

million.

On April 24, 2025, we entered into a waiver letter permitting us to enter into a repurchase agreement with Midcap

Financial Trust dated as of April 17, 2025.

On May 30, 2025, we entered into a joinder agreement (the "Third Lender Joinder Agreement") under the accordion

feature in the ING Credit Facility pursuant to which aggregate commitments under such facility increased from

$250 million to $275 million. The parties to the Third Lender Joinder Agreement include us, City National Bank, as

additional lender, the Subsidiary Guarantors party to such agreement and the Administrative Agent.

On October 30, 2025, we entered into a commitment increase agreement (the "Second Commitment Increase Agreement")

under the accordion feature in the ING Credit Facility pursuant to which aggregate commitments under such facility

increased from $275 million to $300 million. The parties to the Second Commitment Increase Agreement include the

Company, City National Bank, as Lender, the Subsidiary Guarantors party to such agreement and the Administrative

Agent.

As of March 31, 2026 and December 31, 2025, we had approximately $290.0 million and $277.0 million, respectively, in

outstanding borrowings from the ING Credit Facility and availability as determined under the borrowing base of the ING

Credit Facility of $10 million.

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

ING Credit Facility for the three months ended March 31, 2026 and March 31, 2025 (dollar amounts in thousands, except

per share data, unless otherwise indicated):

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Interest expense | $3473 | $3198 |
| Non-usage fee <sup>(1)</sup> | 66 | 47 |
| Amortization of financing costs | 201 | 138 |
| Weighted average interest rate <sup>(2)</sup> | 6.55% | 7.25% |
| Weighted average outstanding balance | $215104 | $178810 |

---

(1)Non-usage fee is applicable to the undrawn portion of the credit facilities.

(2) Weighted average interest rate is calculated as interest expense for the period, annualized, divided by the weighted

average outstanding balance for the period. Excludes non-usage fees and amortization of deferred financing costs, each

presented as separate line items in the table above.

**SBA-Guaranteed Debentures**

The following illustration summarizes the Company's SBA-guaranteed debentures issued through its SBIC and SSBIC

subsidiaries, including outstanding balances, available capacity, and applicable interest rates, as of March 31, 2026.

![SBIC_SSBIC.jpg](ls-20260331_g8.jpg)

(1) Combined maximum capacity of $350M represents the aggregate licensed debenture limit across Lafayette Square

SBIC, LP and Lafayette Square SSBIC, LP. As of March 31, 2026, the Company has received SBA commitments of

$290.0M in aggregate, with $230.0M currently outstanding.

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

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

requirements, including periodic examination by the SBA. As of March 31, 2026 and December 31, 2025, LS SBIC LP and

LS SSBIC LP had a combined regulatory capital of $175.0 million and $110.0 million, respectively. SBA-guaranteed

debentures outstanding were $230.0 million as of both March 31, 2026 and December 31, 2025. SBA debentures are non-

recourse to us, have a 10-year maturity, and may be prepaid at any time without penalty. The interest rate on the SBA

debentures is fixed at the time of issuance, which is often referred to as pooling, at a market-driven spread over 10-year

U.S. Treasury Notes. Current SBA regulations limit the amount that each of LS SBIC LP and LS SSBIC LP may borrow

to a maximum of $175.0 million, which is up to twice its potential regulatory capital.

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

2.435% issuance discount on drawdowns. These amounts are amortized over the life of the SBA-guaranteed debentures. In

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

The following table summarizes our SBA-guaranteed debentures as of March 31, 2026 (dollar amounts in thousands,

except per share data, unless otherwise indicated):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Issuance Date** | **Maturity Date** | **Debenture Amount** | **Interest Rate** | **SBA Annual Charge** |
| September 15, 2023 | March 1, 2034 | $31000 | 5.04% | 0.047% |
| March 15, 2024 | September 1, 2034 | 5960 | 4.38% | 0.047% |
| June 14, 2024 | September 1, 2034 | 45540 | 4.38% | 0.129% |
| September 16, 2024 | March 1, 2035 | 82505 | 4.96% | 0.129% |
| December 12, 2024 | March 1, 2035 | 27500 | 4.96% | 0.347% |
| March 28, 2025 | September 1, 2035 | 9995 | 4.53% | 0.347% |
| June 27, 2025 | September 1, 2035 | $27500 | 4.53% | 0.347% |

---

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

debentures for the three months ended March 31, 2026 and March 31, 2025 (dollar amounts in thousands, except per share

data, unless otherwise indicated):

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Interest expense | $2807 | $2401 |
| Non-usage fee |  |  |
| Amortization of financing costs | 304 | 231 |
| Weighted average interest rate <sup>(1)</sup> | 4.95% | 5.05% |
| Weighted average outstanding balance | $230000 | $192949 |

---

(1) Weighted average interest rate is calculated as interest expense for the period, annualized, divided by the weighted

average outstanding balance for the period.

**Unsecured Notes**

On August 19, 2025, we entered into a Note Purchase Agreement (the "Note Purchase Agreement") governing the issuance

of $65.0 million in aggregate principal amount of 7.00% Senior Notes (the "Notes") to qualified institutional investors in a

private placement.

The Notes were issued on August 19, 2025 and will mature on August 19, 2030 unless redeemed, purchased or prepaid

prior to such date by the Company in accordance with their terms. The Notes have a fixed annual interest rate of 7.00%.

Interest on the Notes is due semiannually. Interest payable on the Notes is subject to increase (up to a maximum increase of

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2.00% above the stated rate for the Notes) in the event that, subject to certain exceptions, the Notes cease to have an

investment grade rating and the Company's minimum secured debt ratio exceeds certain thresholds.

The Notes are general unsecured obligations of the Company that rank at least pari passu, without preference or priority,

with all other unsecured and unsubordinated indebtedness of the Company. The Notes are guaranteed, on a senior

unsecured basis, by LS BDC Holdings, LLC (the "Guarantor"), a wholly owned subsidiary of the Company.

The Note Purchase Agreement contains customary terms and conditions for senior unsecured notes issued in a private

placement, including affirmative and negative covenants, such as maintenance of the Company's status as a business

development company within the meaning of the 1940 Act, a minimum consolidated net worth test and a minimum asset

coverage ratio. The Note Purchase Agreement also contains customary events of default with customary cure and notice

periods.

In addition, the Company is obligated to offer to repay the Notes at 100% of the principal amount of such Notes, together

with interest on such Notes accrued to, if certain change in control events occur.

The Notes were offered in reliance on Section 4(a)(2) under the Securities Act. The Notes have not and will not be

registered under the Securities Act or any state securities laws. Unless they are registered under the Securities Act, the

Notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject

to, the registration requirements of the Securities Act. We used the net proceeds from this offering for general corporate

purposes, including making investments.

As of March 31, 2026, the carrying amount of the Company's borrowings under the Notes approximated its fair value. As

of March 31, 2026, unamortized debt issuance costs of $1.5 million are being deferred and amortized over the remaining

term of the Notes. As of March 31, 2026, the Notes had an outstanding balance of $65.0 million.

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

Notes for the three months ended March 31, 2026 and March 31, 2025 (dollar amounts in thousands, except per share data,

unless otherwise indicated):

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months ended** <br>**March 31, 2026**<br>| **For the three** <br>**months ended** <br>**March 31, 2025**<br>|
| Interest expense | $1117 | $— |
| Non-usage fee |  |  |
| Amortization of financing costs | 86 |  |
| Weighted average interest rate <sup>(1)</sup> | 7.00% | —% |
| Weighted average outstanding balance | $65000 | $— |

---

(1) Weighted average interest rate is calculated as interest expense for the period, annualized, divided by the weighted

average outstanding balance for the period.

***Off-Balance Sheet Arrangements***

We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet

the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve,

to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of

March 31, 2026 and December 31, 2025, we were not party to any off-balance sheet arrangements.

**Recent Developments** 

On April 2, 2026, the Company invested in a senior secured first lien term loan in Florida Solid Solutions LLC, totaling

$9.1 million, bearing an interest rate of 3M Term SOFR + 6.25%, maturing on April 2, 2031.

On April 2, 2026, the Company invested in a senior secured first lien term loan in Mission Critical Group LLC, totaling

$12.3 million, bearing an interest rate of 3M Term SOFR + 5.50%, maturing on October 1, 2030.

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On April 2, 2026, the Company invested in a senior secured first lien revolver credit facility in Rotolo Consultants Inc,

with a funding of $0.5 million. This loan bears an interest rate of 3M Term SOFR + 5.50%, and matures on January 31,

2031. On April 10, 2026, the Company invested in a senior secured first lien term loan in Rock Gate Capital, LLC totaling $0.8

million, bearing an interest rate of 3M Term SOFR + 6.75%, maturing on May 30, 2029.

On April 10, 2026, the Company made an additional equity investment in Lafayette Square SBLC, LLC totaling $1.0

million.

On April 15, 2026, Ironhorse Purchaser, LLC repaid in full its outstanding senior secured first lien 2023 incremental term

loan, with aggregate repayments totaling approximately $9.8 million.

On April 15, 2026, the Company invested in a senior secured first lien revolver credit facility in Trilon Group LLC, with a

funding of $0.1 million. This loan bears an interest rate of 3M Term SOFR + 4.50%, and matures on May 25, 2029.

On April 22, 2026, the Company invested in a senior secured first lien term loan in Sand Lake Outsourcing Intermediate,

LLC, totaling $19.2 million, bearing an interest rate of 3M Term SOFR + 6.50%, maturing on January 28, 2031. On April

22, 2026, the Company also committed to a senior secured first lien revolver credit facility in Sand Lake Outsourcing

Intermediate, LLC, with total commitments of $0.7 million, bearing an interest rate of 3M Term SOFR + 6.50%, maturing

on January 28, 2031.

On May 7, 2026, Zero Waste Recycling LLC repaid in full its outstanding senior secured first lien term loan and delayed

draw term loan, with aggregate repayments totaling approximately $17.5 million. The Company retains its structured

equity position in Zero Waste Recycling LLC.

In addition, as of April 24, 2026, we had an investment backlog and pipeline of approximately $221.3 million and $809.8

million, respectively. For purposes of this Report, "investment backlog" includes transactions approved by the Adviser's

investment committee and/or for which we have issued a formal mandate, letter of intent or a term sheet. We therefore

believe such investments have a strong likelihood of closing. The term "investment pipeline" includes transactions where

initial due diligence has begun and/or analysis is in process, but we have issued no formal mandate, letter of intent or term

sheets to the prospective borrower. The consummation of any of the investments in our backlog and pipeline depends upon

one or more of the following occurring: satisfactory completion of our due diligence investigation of the prospective

portfolio company, our acceptance of the terms and structure of such investment and the negotiation, execution, and

delivery of satisfactory transaction documentation. In addition, we may sell all or a portion of these investments and certain

of these investments may result in the repayment of existing investments. We cannot make any assurances that we will

make any of these investments or that we will sell all or any portion of these investments.

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

We are subject to financial market risks, most significantly changes in interest rates. Interest rate sensitivity refers to the

change in our earnings that may result from changes in the level of interest rates. Because we expect to fund a portion of

our investments with borrowings, our net investment income is expected to be affected by the difference between the rate at

which we invest and the rate at which we borrow. As a result, we can offer no assurance that a significant change in market

interest rates will not have a material adverse effect on our net investment income.

In addition, any investments we make that are denominated in a foreign currency will be subject to risks associated with

changes in currency exchange rates. These risks include the possibility of significant fluctuations in the foreign currency

markets, the imposition or modification of foreign exchange controls and potential illiquidity in the secondary market.

These risks will vary depending upon the currency or currencies involved.

The following table estimates the potential changes in net cash flow generated from interest income, should interest rates

increase or decrease by 100, 200 or 300 basis points. These hypothetical interest income calculations are based on a model

of the settled debt investments in our portfolio, held as of March 31, 2026, and are only adjusted for assumed changes in

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the underlying base interest rates and the impact of that change on interest income. As of March 31, 2026, approximately

84.6% of investments at fair value (excluding investments on non-accrual, unfunded debt investments and non-bearing

equity investments) represent floating-rate investments with a SOFR floor (including investments bearing a prime interest

rate contracts) and approximately 15.4% of investments at fair value represent non floating-rate investments. Additionally,

our ING Credit Facility is also subject to a floating interest rate and currently paid on a floating SOFR rates. Interest

expense is calculated based on outstanding secured borrowings as of March 31, 2026 and based on the terms of our ING

Credit Facility. Interest expense on our ING Credit Facility is calculated using the stated interest rate as of March 31, 2026,

adjusted for the hypothetical changes in rates, as shown below. Our pooled SBA debentures and the Notes bear interest at

fixed rates. We continue to finance a portion of our investments with borrowings and the interest rates paid on our

borrowings may impact significantly our net interest income.

We regularly measure exposure to interest rate risk. We assess interest rate risk and manage interest rate exposure on an

ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review,

we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

Based on our Consolidated Statements of Assets and Liabilities as of March 31, 2026, the following table shows the

expected annual impact on net investment income of base rate changes in interest rates for our settled debt investments

(considering interest rate floors for variable rate instruments) and outstanding secured borrowings assuming no changes in

our investment and borrowing structure (dollar amounts in thousands, except per share data, unless otherwise indicated):

---

| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| <br>**Basis point increase (decrease)** | **Interest Income** | **Interest** <br>**Expense**<br>| **Net Interest** <br>**Income**<br>|
| Up 300 basis points | $21333 | $(8699) | $12634 |
| Up 200 basis points | $14215 | $(5800) | $8415 |
| Up 100 basis points | $7096 | $(2900) | $4196 |
| Down 100 basis points | $(7096) | $2900 | $(4196) |
| Down 200 basis points | $(14192) | $5800 | $(8392) |
| Down 300 basis points | $(19423) | $8699 | $(10724) |

---

Because certain floating rate debt investments are subject to interest rate floors, the estimated reduction in interest income

in down-rate scenarios is smaller in magnitude than the corresponding estimated increase in up-rate scenarios. Our floating

rate borrowings do not contain interest rate floors and are reflected symmetrically across both rising and declining rate

scenarios.

We may hedge against interest rate and currency exchange rate fluctuations by using standard hedging instruments such as

futures, options, swaps and forward contracts and credit hedging contracts, such as credit default swaps, in each case,

subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest

rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of

investment with fixed interest rates.

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**ITEM 4. CONTROLS AND PROCEDURES**

***Disclosure Controls and Procedures***

As of March 31, 2026, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the

effectiveness and design and operation of our disclosure controls and procedures. Based on that evaluation, our

management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and

procedures were effective at a reasonable assurance level in timely alerting management, including the Chief Executive

Officer and Chief Financial Officer, of material information about us required to be included in periodic SEC filings.

However, in evaluation of the disclosure controls and procedures, management recognized that any controls and

procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired

control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit

relationship of possible controls and procedures.

***Management's Report on Internal Control Over Financial Reporting***

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as

defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control system is a process designed to

provide reasonable assurance to our management and Board regarding the preparation and fair presentation of published

consolidated financial statements.

Our internal control over financial reporting includes policies and procedures that pertain to the maintenance of records

that, in reasonable detail, accurately and fairly reflect transactions recorded necessary to permit the preparation of

consolidated financial statements in accordance with U.S. generally accepted accounting principles. Our policies and

procedures also provide reasonable assurance that receipts and expenditures are being made only in accordance with

authorizations of management and our directors, and provide reasonable assurance regarding prevention or timely detection

of unauthorized acquisition, use or disposition of our assets that could have a material effect on our consolidated financial

statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems

determined to be effective can provide only reasonable assurance with respect to consolidated financial statement

preparation and presentation. Also, projections of any evaluation of effectiveness as to future periods are subject to the risk

that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies

or procedures may deteriorate.

Management assessed the effectiveness of our internal control over financial reporting as of March 31, 2026. In making

this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission

in Internal Control — Integrated Framework issued in 2013. Based on the assessment, management believes that, as of

March 31, 2026, our internal control over financial reporting is effective based on those criteria.

***Changes in Internal Control Over Financial Reporting***

There have been no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f)

under the Exchange Act, that occurred during our most recently completed fiscal quarter ended March 31, 2026 that have

materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

**PART II**

**Item 1. Legal Proceedings**

Neither we nor our Adviser or Administrator is currently subject to any material legal proceedings, nor, to our knowledge,

is any material legal proceeding that would affect our business threatened against us, or against our Adviser or

Administrator.

From time to time, we, our Adviser or Administrator may be a party to certain legal proceedings in the ordinary course of

business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies.

While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings

will have a material effect upon our financial condition or results of operations. Our businesses are also subject to extensive

regulation, which may result in regulatory proceedings against us.

**Item 1A. Risk Factors**

In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in Item

1A (Risk Factors) in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The risks described in

our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to

us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition

and/or operating results. There have been no material changes known to us during the three months ended March 31, 2026,

to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31,

2025. **Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

All sales of unregistered securities during the three months ended March 31, 2026 were reported in our current reports on

Form 8-K filed with the SEC.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

During the quarter ended March 31, 2026, none of our officers or directors adopted or terminated any contract, instruction

or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of

Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

**Item 6. Exhibits**

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the three

months ended March 31, 2026 (and are numbered in accordance with Item 601 of Regulation S-K).

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

<u>[**Table of Contents**](#icf58b7f161364a20b04cd7a86c0bfeb9_184)</u>

---

| | |
|:---|:---|
| **No.** | **Description** |
| 3.1 | <u>[Certificate of Incorporation of the Registrant (filed as part of the Registrant's Registration Statement on Form 10](https://www.sec.gov/Archives/edgar/data/0001849089/000110465921073554/tm2113860d1_ex3-1.htm)</u><br><u>[(File No. 000-56289) filed on May 28, 2021 and incorporated herein by reference).](https://www.sec.gov/Archives/edgar/data/0001849089/000110465921073554/tm2113860d1_ex3-1.htm)</u><br>|
| 3.2 | <u>[Amendment to Certificate of Incorporation (filed as part of Registrant's Current Report on Form 8-K filed on](https://www.sec.gov/Archives/edgar/data/1849089/000184908922000015/exhibit31certificateofamen.htm)</u><br><u>[May 19, 2022 and incorporated herein by reference.)](https://www.sec.gov/Archives/edgar/data/1849089/000184908922000015/exhibit31certificateofamen.htm)</u><br>|
| 3.3 | <u>[Bylaws (filed as part of the Registrant's Registration Statement on Form 10 (File No. 000-56289) filed on May](https://www.sec.gov/Archives/edgar/data/0001849089/000110465921073554/tm2113860d1_ex3-2.htm)</u><br><u>[28, 2021 and incorporated herein by reference.)](https://www.sec.gov/Archives/edgar/data/0001849089/000110465921073554/tm2113860d1_ex3-2.htm)</u> <br>|
| 3.4 | <u>[First Amendment to Bylaws (filed as part of Registrant's Current Report on Form 8-K filed on May 16, 2022](https://www.sec.gov/Archives/edgar/data/1849089/000184908922000015/exhibit32-firstamendmentto.htm)</u><br><u>[and incorporated herein by reference.)](https://www.sec.gov/Archives/edgar/data/1849089/000184908922000015/exhibit32-firstamendmentto.htm)</u> <br>|
| 3.5 | <u>[Second Amendment to Bylaws (filed as part of Registrant's Current Report on Form 8-K filed on June 8, 2023](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849089/000184908923000039/ls-20230608.htm)</u><br><u>[and incorporated herein by reference.)](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849089/000184908923000039/ls-20230608.htm)</u><br>|
| 31.1 | <u>[Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities](exhibit311-lsusaform10xqq1.htm)</u><br><u>[Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\*](exhibit311-lsusaform10xqq1.htm)</u><br>|
| 31.2 | <u>[Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange](exhibit312-lsusaform10xqq1.htm)</u><br><u>[Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\*](exhibit312-lsusaform10xqq1.htm)</u><br>|
| 32.1 | <u>[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section](exhibit321-lsusaform10xqq1.htm)</u><br><u>[906 of the Sarbanes-Oxley Act of 2002.\*](exhibit321-lsusaform10xqq1.htm)</u><br>|
| 32.2 | <u>[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906](exhibit322-lsusaform10xqq1.htm)</u><br><u>[of the Sarbanes-Oxley Act of 2002.\*](exhibit322-lsusaform10xqq1.htm)</u><br>|

---

\*Filed herewith

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed

on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
|  | **Lafayette Square USA, Inc.** |
| Date: May 8, 2026 | By: /s/ Damien Dwin |
|  | Name: Damien Dwin |
|  | Title: President and Chief Executive Officer |
| Date: May 8, 2026 | By: /s/ Seren Tahiroglu |
|  | Name: Seren Tahiroglu |
|  | Title: Chief Financial Officer |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following

persons on behalf of the Registrant and in the capacities indicated on May 8, 2026.

---

| | |
|:---|:---|
| **Name** | **Title** |
| /s/ Damien Dwin | President, Chief Executive Officer and Chairman of the Board of Directors |
| Damien Dwin |  |
| /s/ Seren Tahiroglu | Chief Financial Officer |
| Seren Tahiroglu |  |

---

## Exhibit 31.1

**Exhibit 31.1**

**Certification of Chief Executive Officer**

**Of Periodic Report Pursuant to Rule 13a-14(a) and 15d-14(a)** 

I, Damien Dwin, Chief Executive Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-Q of Lafayette Square USA, Inc. (the "Registrant");

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

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

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

---

| | | |
|:---|:---|:---|
| Date: May 8, 2026 | By: | /s/ Damien Dwin |
|  |  | Damien Dwin |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification of Chief Financial Officer**

**Of Periodic Report Pursuant to Rule 13a-14(a) and 15d-14(a)** 

I, Seren Tahiroglu, Chief Financial Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-Q of Lafayette Square USA, Inc. (the "Registrant");

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

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

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

---

| | | |
|:---|:---|:---|
| Date: May 8, 2026 | By: | /s/ Seren Tahiroglu |
|  |  | Seren Tahiroglu |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO**

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

In connection with the accompanying Quarterly Report of Lafayette Square USA, Inc. (the "Company") on Form 10-Q for the year ended March 31, 2026 (the "Report"), I, Damien Dwin, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

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

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

---

| | | |
|:---|:---|:---|
| Date: May 8, 2026 | By: | /s/ Damien Dwin |
|  |  | Damien Dwin |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO**

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

In connection with the accompanying Quarterly Report of Lafayette Square USA, Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2026 (the "Report"), I, Seren Tahiroglu, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

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

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

---

| | | |
|:---|:---|:---|
| Date: May 8, 2026 | By: | /s/ Seren Tahiroglu |
|  |  | Seren Tahiroglu |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

<br>