Document:

Exhibit 10.1

 

INVESTMENT
ADVISORY AGREEMENT

BETWEEN

BARINGS CAPITAL INVESTMENT CORPORATION

AND

BARINGS LLC

 

This INVESTMENT
ADVISORY AGREEMENT (this “Agreement”), dated as of June 24, 2020, between Barings Capital Investment
Corporation, a Maryland corporation (the “Company”), and Barings LLC, a Delaware limited liability company
(the “Adviser”).

 

WHEREAS, the Company
is a 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 (together with the rules promulgated thereunder, the “1940 Act”);

 

WHEREAS, the Adviser
is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (together with the rules promulgated
thereunder, the “Advisers Act”);

 

WHEREAS, the Company
desires to retain the Adviser to provide investment advisory services to the Company in the manner and on the terms and conditions
hereinafter set forth; and

 

WHEREAS, the Adviser
is willing to provide investment advisory services to the Company in the manner and on the terms and conditions hereinafter set
forth.

 

NOW, THEREFORE, in
consideration of the premises and the covenants hereinafter contained and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Company and the Adviser hereby agree as follows:

 

1.            In
General.

 

The Adviser agrees,
all as more fully set forth herein, to act as investment adviser to the Company with respect to the investment of the Company’s
assets and to supervise and arrange for the day-to-day operations of the Company and the purchase of assets for and the sale of
assets held in the investment portfolio of the Company.

 

2.            Duties
and Obligations of the Adviser with Respect to Investment of Assets of the Company.

 

(a)            Subject
to the succeeding provisions of this paragraph and subject to the direction and control of the Company’s board of directors
(the “Board of Directors”), the Adviser shall act as the investment adviser to the Company and shall manage
the investment and reinvestment of the assets of the Company. Without limiting the generality of the foregoing, the Adviser shall,
during the term and subject to the provisions of this Agreement, (i) determine the composition of the portfolio of the Company,
the nature and timing of the changes therein and the manner of implementing such changes; (ii) identify, evaluate and negotiate
the structure of the investments made by the Company; (iii) execute, close, service and monitor the investments that the Company
makes; (iv) determine the securities and other assets that the Company will purchase, retain or sell; (v) perform due
diligence on prospective portfolio companies; and (vi) provide the Company with such other investment advisory, research and
related services as the Company may, from time to time, reasonably require for the investment of its funds. Nothing contained herein
shall be construed to restrict the Company’s right to hire its own employees or to contract for administrative services to
be performed by third parties, including but not limited to, the calculation of the net asset value of the Company’s shares.

 

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(b)            In
the performance of its duties under this Agreement, the Adviser shall at all times use all reasonable efforts to conform to, and
act in accordance with, any requirements imposed by (i) the provisions of the 1940 Act, and of any rules or regulations
in force thereunder, subject to the terms of any exemptive order applicable to the Company; (ii) any other applicable provision
of law; (iii) the provisions of the Articles of Incorporation and the Bylaws of the Company, as such documents may be amended
from time to time; (iv) the investment objectives, policies and restrictions applicable to the Company as set forth in the
reports and/or registration statements that the Company files with the Securities and Exchange Commission (the “SEC”),
as they may be amended from time to time by the Board of Directors of the Company; and (v) any policies and determinations
of the Board of Directors of the Company and provided in writing to the Adviser.

 

(c)            The
Adviser will provide significant managerial assistance to those portfolio companies of the Company that the Company agrees to provide
such services to as required by the 1940 Act.

 

(d)            The
Adviser may engage one or more investment advisers (each, a “Sub-Adviser”) which are registered under the Advisers
Act to act as sub-advisers to provide the Company certain services set forth in Section 2(a) of this Agreement, all as
shall be set forth in a written contract (each, a “Sub-Advisory Agreement”) to which the Company and the Adviser
shall be parties, which Sub-Advisory Agreement shall be subject to approval by the vote of a majority of the members of the Board
of Directors who are not “interested persons” (as such term is defined in Section 2(a)(19) of the 1940 Act) of
the Adviser, any sub-adviser, or of the Company (each, a “Non-Interested Director”), cast in person at a meeting
called for the purpose of voting on such approval and, to the extent required by the 1940 Act, by the vote of a majority of the
outstanding voting securities of the Company and otherwise consistent with the terms of the 1940 Act. The Adviser and not the Company
shall be responsible for any compensation payable to any Sub-Adviser; provided, however, that the Adviser shall have the right
to direct the Company to pay directly to any Sub-Adviser the amounts due and payable to such Sub-Adviser from the fees and expenses
payable to the Adviser under this Agreement.

 

(e)            The
Adviser will maintain all books and records with respect to the Company’s securities transactions required by sub-paragraphs
(b)(5), (6), (9) and (10) and paragraph (f) of Rule 31a-1 under the 1940 Act (other than those records being
maintained by the administrator to the Company (the “Administrator”) under the administration agreement to be
entered into by and between the Company and the Administrator concurrent herewith (the “Administration Agreement”),
or by the Company’s custodian or transfer agent) and preserve such records for the periods prescribed therefor by Rule 31a-2
of the 1940 Act. The Adviser shall have the right to retain copies, or originals where required by Rule 204-2 promulgated
under the Advisers Act, of such records to the extent required by applicable law, subject to observance of its confidentiality
obligations under this Agreement.

 

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(f)            All
investment professionals of the Adviser and its staff, when and to the extent engaged in providing investment advisory and management
services hereunder, and the compensation and routine overhead expenses of such personnel allocable to such services, shall be provided
and paid for by the Adviser and not by the Company. The Company shall bear all other costs and expenses of its operations and transactions,
including, without limitation, those relating to:

 

(i)             organizational
and offering expenses;

 

(ii)            fees
and expenses incurred in valuing the Company’s assets and computing its net asset value (including the cost and expenses
of any independent valuation firm);

 

(iii)           the
fees and expenses incurred by the Company or payable to third parties, including lawyers, accountants, auditors, agents, consultants
or other advisors, in connection with the Company’s financial, accounting and legal affairs and in monitoring the Company’s
investments and performing due diligence on the Company’s prospective portfolio companies or otherwise related to, or associated
with, evaluating and making investments, including expenses related to unsuccessful portfolio acquisition efforts;

 

(iv)           all
fees, costs and expenses of money borrowed by the Company, including principal, interest and the costs associated with the establishment
and maintenance of any credit facilities, other financing arrangements, or other indebtedness of the Company, if any (including
commitment fees, accounting and legal fees, closing and other costs);

 

(v)            offerings
of the Company’s common stock and other securities;

 

(vi)           investment
advisory and management fees payable under Section 6 of this Agreement;

 

(vii)          administration
fees;

 

(viii)         transfer
agent and custody fees and expenses;

 

(ix)           federal
and state registration fees;

 

(x)            all
costs of registration and listing the Company’s securities on any securities exchange;

 

(xi)           federal,
state and local taxes;

 

(xii)          Non-Interested
Directors’ compensation, fees and expenses;

 

(xiii)         costs
of preparing and filing reports or other documents required by the SEC or other regulators;

 

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(xiv)         costs
of any reports, proxy statements or other notices to stockholders, including printing costs;

 

(xv)          costs
of holding stockholder meetings;

 

(xvi)         the
Company’s allocable portion of the fidelity bond, directors and officers/errors and omissions liability insurance, and any
other insurance premiums, including independent director liability policies;

 

(xvii)        direct
costs and expenses of administration and operation, including printing, mailing, long distance telephone, copying, secretarial
and other staff, independent auditors and outside legal costs;

 

(xviii)       all
third-party legal, expert and other fees, costs and expenses relating to any actions, proceedings, lawsuits, demands, causes of
action and claims, whether actual or threatened, made by or against the Company, or which the Company is authorized or obligated
to pay under applicable law or its governing agreements or by the Board of Directors;

 

(xix)         subject
to Section 7 below, any judgment or settlement of pending or threatened proceedings (whether civil, criminal or otherwise)
against the Company, or against any trustee, director, partner, member or officer of the Company in his capacity as such for which
the Company is required to indemnify such trustee, director, partner, member or officer by any court or governmental agency, or
settlement of pending or threatened proceedings;

 

(xx)          all
travel and related expenses of directors, officers, managers, agents and employees of the Company and the Adviser, incurred in
connection with attending meetings of the Board of Directors or holders of securities of the Company or performing other business
activities that relate to the Company, including travel and related expenses incurred in connection with the purchase, consideration
for purchase, financing, refinancing, sale or other disposition of any investment or potential investment of the Company; provided,
however, that the Company shall only be responsible for (A) a proportionate share of such expenses, as determined by the Adviser
in good faith, where such expenses were not incurred solely for the benefit of the Company, and (B) expenses incurred in accordance
with the Company’s travel expense reimbursement policies;

 

(xxi)          all
expenses relating to payments of dividends or interest or distributions in cash or any other form made or caused to be made by
the Board of Directors to or on account of holders of the securities of the Company, including in connection with any dividend
reinvestment plan or direct stock purchase plan;

 

(xxii)        all
fees, costs and expenses related to (A) the design and maintenance of the Company’s web site or sites and (B) the
Company’s allocable share of costs associated with technology-related expenses, including any computer software or hardware,
electronic equipment or purchased information technology services from third-party vendors or affiliates of the Adviser that is
used for the Company, technology service providers and related software/hardware utilized in connection with the Company’s
investment and operational activities;

 

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(xxiii)        all
fees, costs and expenses incurred with respect to market information systems and publications, research publications and materials,
and settlement, clearing and custodial fees and expenses; provided, however, that the Company shall only be responsible for a proportionate
share of such expenses, as determined by the Adviser in good faith, where such expenses were not incurred solely for the benefit
of the Company; and

 

(xxiv)        all
other non-investment advisory expenses incurred by the Company or the Administrator in connection with administering the Company’s
business (including payments under the Administration Agreement based upon the Company’s allocable portion of the Administrator’s
overhead in performing its obligations under the Administration Agreement, including rent and the allocable portion of the cost
of the Company’s Chief Financial Officer and Chief Compliance Officer and their respective staffs).

 

(g)            The
Adviser shall give the Company the benefit of its professional judgment and effort in rendering services hereunder, but neither
the Adviser nor any of its officers, directors, employees, agents or controlling persons shall be liable for any act or omission
or for any loss sustained by the Company in connection with the matters to which this Agreement relates, provided, that
the foregoing exculpation shall not apply to a loss resulting from fraud, willful misfeasance, bad faith or gross negligence in
the performance of its duties, or by reason of its reckless disregard of its obligations and duties under this Agreement; provided
further, however, that the foregoing shall not constitute a waiver of any rights which the Company may have which may
not be waived under applicable law.

 

(h)            The
Adviser is hereby authorized, on behalf of the Company and at the direction of the Board of Directors pursuant to delegated authority,
to possess, transfer, mortgage, pledge or otherwise deal in, and exercise all rights, powers, privileges and other incidents of
ownership or possession with respect to, the Company’s investments and other property and funds held or owned by the Company,
including voting and providing consents and waivers with respect to the Company’s investments and exercising and enforcing
rights with respect to any claims relating to the Company’s investments and other property and funds, including with respect
to litigation, bankruptcy or other reorganization.

 

(i)            The
Adviser will place orders either directly with the issuer or with any broker or dealer in connection with making investments on
the Company’s behalf hereunder. Subject to the other provisions of this paragraph, in placing orders with brokers and dealers,
the Adviser will attempt to obtain the best price and the most favorable execution of its orders. In placing orders, the Adviser
will consider the experience and skill of the firm’s securities traders as well as the firm’s financial responsibility
and administrative efficiency. Consistent with this obligation, the Adviser may select brokers on the basis of the research, statistical
and pricing services they provide to the Company and other clients of the Adviser. Information and research received from such
brokers will be in addition to, and not in lieu of, the services required to be performed by the Adviser hereunder. A commission
paid to such brokers may be higher than that which another qualified broker would have charged for effecting the same transaction,
provided that the Adviser determines in good faith that such commission is reasonable in terms either of the transaction or the
overall responsibility of the Adviser to the Company and its other clients and that the total commissions paid by the Company will
be reasonable in relation to the benefits to the Company over the long term, subject to review by the Board of Directors of the
Company from time to time with respect to the extent and continuation of such practice to determine whether the Company benefits,
directly or indirectly, from such practice.

 

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(j)            The
Adviser will provide to the Board of Directors such periodic and special reports as it may reasonably request.

 

3.            Services
Not Exclusive.

 

Nothing in this Agreement
shall prevent the Adviser or any officer, employee or other affiliate thereof from acting as investment adviser for any other person,
firm or corporation, whether or not the investment objectives or policies of any such other person, firm, or corporation are similar
to those of the Company, or from engaging in any other lawful activity, and shall not in any way limit or restrict the Adviser
or any of its officers, employees or agents from buying, selling or trading any securities for its or their own accounts or for
the accounts of others for whom it or they may be acting; provided, however, that the Adviser will not undertake,
and will cause its employees not to undertake, activities which, in its reasonable judgment, will adversely affect the performance
of the Adviser’s obligations under this Agreement.

 

4.            Confidentiality.

 

The parties hereto
agree that each shall treat confidentially all information provided by each party to the other regarding its business and operations.
All confidential information provided by a party hereto, including all “nonpublic personal information,” as defined
under the Gramm-Leach-Bliley Act of 1999 (Public law 106-102, 113 Stat. 1138), shall be used by the other party hereto solely for
the purpose of rendering services pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall
not be disclosed to any third party, without the prior consent of such providing party, except that such confidential information
may be disclosed to an affiliate or agent of the disclosing party to be used for the sole purpose of providing the services set
forth herein. The foregoing shall not be applicable to any information that is publicly available when provided or thereafter becomes
publicly available other than through a breach of this Agreement, or that is requested by or required to be disclosed to any governmental
or regulatory authority, including in connection with any required regulatory filings or examinations, by judicial or administrative
process or otherwise by applicable law or regulation. Notwithstanding the foregoing, the Company hereby consents and authorizes
the Adviser and its affiliates to use and disclose confidential information relating to the Company in connection with (a) the
preparation of performance information relating to the Company and (b) in connection with any contemplated sale of the outstanding
equity or assets of the Adviser, Administrator, or any person who may be deemed to “control” either of the Adviser
or the Administrator, in each case within the meaning of the 1940 Act.

 

5.            Expenses.

 

During the term of
this Agreement, the Adviser will bear all compensation expense (including health insurance, pension benefits, payroll taxes and
other compensation related matters) of its employees and shall bear the costs of any salaries of any officers or directors of the
Company who are affiliated persons (as defined in the 1940 Act) of the Adviser.

 

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6.            Compensation
of the Adviser.

 

The Adviser, for its
services to the Company, will be entitled to receive a management fee (the “Base Management Fee”) and an incentive
fee (“Incentive Fee”) from the Company.

 

(a)            The
Base Management Fee will be calculated at an annual rate of 0.15% of the Company’s gross assets, including assets purchased
with borrowed funds or other forms of leverage but excluding (i) cash and cash equivalents (as defined below) and (ii) net
unsettled purchases and sales of investments. For services rendered under this Agreement, the Base Management Fee will be payable
quarterly in arrears. The Base Management Fee will be calculated based on the average value of the Company’s gross assets
at the end of the two most recently completed calendar quarters (including the quarter for which such fees are being calculated)
and appropriately adjusted for any share issuances or repurchases during the quarter. For the Company’s first quarter, the
Base Management Fee will be calculated based on the value of the Company’s gross assets as of such quarter-end. The Base
Management Fee for any partial quarter will be appropriately pro-rated. For purposes of this Agreement, “cash equivalents”
means U.S. government securities, money market fund investments, commercial paper instruments and other similar cash equivalent
investments maturing within one year of purchase.

 

(b)            The
Incentive Fee will consist of two parts: (i) an incentive fee based on pre-incentive fee net investment income (the “Income-Based
Fee”) and (ii) an incentive fee based on capital gains (the “Capital Gains Fee”).

 

(i)            The
Income-Based Fee will be payable quarterly in arrears to the extent the Company’s Pre-Incentive Fee Net Investment Income
(as defined below) for the most recently completed calendar quarter divided by the Company’s net assets as of the end of
such calendar quarter (defined as total assets less indebtedness and before taking into account any Income-Based Fees and Capital
Gains Fees payable during the calendar quarter, and appropriately adjusted for any share issuances or repurchases during the calendar
quarter) (the “PIFNII Return”) exceeds the Hurdle Rate (as defined below) and is an amount less than or equal
to the Incentive Fee Cap (as defined below). The Income-Based Fee will be calculated as follows:

 

		a.	No Income-Based Fee in any calendar quarter in which the PIFNII Return does not exceed the Hurdle
Rate;

 

		b.	25% of Pre-Incentive Fee Net Investment Income with respect to that portion of the PIFNII Return
that exceeds the Hurdle Rate but is less than or equal to the Catch-Up Hurdle Rate (as defined below) for such calendar quarter,
which is referred to as the “Catch-Up.” The Catch-Up is intended to provide the Adviser with an Income-Based Fee equal
to 12.5% of all of the Company’s Pre-Incentive Fee Net Investment Income if the Company’s PIFNII Return equals or exceeds
the quarterly Catch-Up Hurdle Rate in any calendar quarter; plus

 

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		c.	12.5% of all Pre-Incentive Fee Net Investment Income with respect to that portion of the PIFNII
Return that exceeds the Catch-Up Hurdle Rate.

 

provided that,
(i) in any quarter that the Incentive Fee Cap is zero or a negative value, the Company will pay no Income-Based Fee to the
Adviser for such quarter, (ii) in any quarter that the Incentive Fee Cap for such quarter is a positive value but is less
than the Income-Based Fee that is payable to the Adviser for such quarter (before giving effect to the Incentive Fee Cap), the
Company will pay an Income-Based Fee to the Adviser equal to the Incentive Fee Cap for such quarter, and (iii) in any quarter
that the Incentive Fee Cap for such quarter is equal to or greater than the Income-Based Fee that is payable to the Adviser for
such quarter (before giving effect to the Incentive Fee Cap), the Company will pay an Income-Based Fee to the Adviser equal to
the Income-Based Fee calculated as described above for such quarter without regard to the Incentive Fee Cap.

 

For purposes of this Section 6(b)(i):

 

“Hurdle Rate”
for any calendar quarter means one fourth of the average daily Floating Rate over the applicable quarter.

 

“Floating
Rate” means, initially, the three-month London Interbank Offered Rate (“LIBOR”); provided that if
a Floating Rate Transition Event and its related Floating Rate Replacement Date have occurred with respect to LIBOR, then “Floating
Rate” means the Replacement Rate. In the event that the Floating Rate is a negative value, then the Floating Rate shall be
zero.

 

“Floating
Rate Transition Event” means the occurrence of one or more of the following events with respect to the Floating Rate:

 

		i.	a public statement or publication of information by or on behalf of the administrator of the Floating
Rate announcing that the administrator has ceased or will cease to provide the Floating Rate permanently or indefinitely, provided
that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Floating
Rate;

 

		ii.	a public statement or publication of information by the regulatory supervisor for the administrator
of the Floating Rate, the central bank for the currency of the Floating Rate, an insolvency official with jurisdiction over the
administrator for the Floating Rate, a resolution authority with jurisdiction over the administrator for the Floating Rate or a
court or an entity with similar insolvency or resolution authority over the administrator for the Floating Rate, which states that
the administrator of the Floating Rate has ceased or will cease to provide the Floating Rate permanently or indefinitely, provided
that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Floating
Rate; or

 

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		iii.	a public statement or publication of information by the regulatory supervisor for the administrator
of the Floating Rate announcing that the Floating Rate is no longer representative.

 

“Floating
Rate Replacement Date” means:

 

		i.	in the case of clause (i) or (ii) of the definition of “Floating Rate Transition
Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the
date on which the administrator of the relevant Floating Rate permanently or indefinitely ceases to provide such Floating Rate;
or

 

		ii.	in the case of clause (iii) of the definition of “Floating Rate Transition Event,”
the date of the public statement or publication of information.

 

“Replacement
Rate” means the first alternative set forth in the order below that can be determined as of the Floating Rate Replacement
Date.

 

		i.	the sum of: (a) Term SOFR and (b) the Benchmark Replacement Adjustment; and

 

		ii.	the sum of: (a) Compounded SOFR and (b) the applicable Benchmark Replacement Adjustment.

 

If a Replacement Rate is selected pursuant
to clause (ii) above, then each calendar quarter following such selection, if a redetermination of the Replacement Rate on
such date would result in the selection of a Replacement Rate under clause (i) above, then (x) the Replacement Rate shall
be redetermined on such date utilizing Term SOFR and (y) such redetermined Replacement Rate shall become the Floating Rate
on or after such date. If redetermination of the Replacement Rate on such date as described in the preceding sentence would not
result in the selection of a Replacement Rate under clause (i), then the Floating Rate shall remain the Replacement Rate as previously
determined pursuant to clause (ii) above.

 

“Term SOFR”
means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

“Compounded
SOFR” means the compounded average of SOFR for the applicable Corresponding Tenor, with the rate, or methodology for
this rate, and conventions for this rate (which, for example, may be compounded in arrears with a lookback and/or suspension period
as a mechanism to determine the interest amount payable for the applicable calendar quarter or compounded in advance) being established
in accordance with the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant
Governmental Body for determining compounded SOFR.

 

“SOFR”
means with respect to any day means the Secured Overnight Financing Rate published for such day by the Federal Reserve Bank of
New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s
Website.

 

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“Corresponding
Tenor” with respect to a Replacement Rate means a tenor (or observation period) having approximately the same length
(disregarding business day adjustment) as the applicable tenor (or observation period) for the then-current Floating Rate.

 

“Benchmark
Replacement Adjustment” means the spread adjustment, or method for calculating or determining such spread adjustment,
(which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for
the transition to the applicable Floating Rate.

 

“Relevant
Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially
endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“Catch-Up
Hurdle Rate” for any calendar quarter means a rate that is equal to 200% of the Hurdle Rate.

 

“Incentive
Fee Cap” means for any calendar quarter an amount equal to (a) 12.5% of the Cumulative Net Return (as defined below)
minus (b) the aggregate Income-Based Fee that was paid in respect of the period ending with the calendar quarter immediately
preceding the most recently completed calendar quarter (or the portion thereof) included in the period for calculation of the Cumulative
Net Return.

 

“Cumulative
Net Return” means (x) the aggregate Pre-Incentive Fee Net Investment Income in respect of either (i) the trailing
twelve calendar quarters ending with the calendar quarter in which the Income-Based Fee is calculated or (ii) prior to the
end of the twelfth calendar quarter after the effective date of this Agreement, the period from the effective date of this Agreement
through the last day of the calendar quarter for which the Income-Based Fee is calculated minus (y) any Net Capital Loss (as
defined below), if any, in respect of the relevant period.

 

“Net Capital
Loss” in respect of a particular period means the difference, if positive, between (i) aggregate capital losses,
whether realized or unrealized, in such period and (ii) aggregate capital gains, whether realized or unrealized, in such period.

 

“Pre-Incentive
Fee Net Investment Income” in respect of a period means interest income, dividend income and any other income (including
any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives
from portfolio companies) accrued during the calendar quarter, minus operating expenses for the quarter (including the Base Management
Fee, any expenses payable under the Administration Agreement, and any interest expense and dividends paid on any outstanding preferred
stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred
interest feature such as market discount, OID, debt instruments with PIK interest, preferred stock with PIK dividends and zero-coupon
securities, accrued income that the Company has not yet received in cash.

 

(ii)            The
Capital Gains Fee will be determined and payable in arrears as of the end of each calendar year (or upon a Liquidity Event or a
termination of this Agreement), and will equal 12.5% of the Company’s realized capital gains, if any, on a cumulative basis
from inception through the end of the 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 Fees. If such amount is zero or negative,
then no Capital Gains Fee is payable for such year. A “Liquidity Event” shall mean a corporate control transaction
or similar event (which may include a transaction with an affiliated entity, including an affiliated BDC), such as a strategic
sale of the Company or all or substantially all of the Company’s assets to, or a merger with, another entity, for consideration
payable to stockholders of the Company of cash or publicly listed securities of such other entity (or a combination of cash and
such publicly listed securities).

 

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7.            Indemnification.

 

The Adviser assumes
no responsibility under this Agreement other than to render the services called for hereunder in good faith and shall not be responsible
for any action of the Board of Directors in following or declining to follow any advice or recommendations of the Adviser. The
Adviser (and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated
with the Adviser) shall not be liable to the Company for any action taken or omitted to be taken by the Adviser in connection with
the performance of any of its duties or obligations under this Agreement or otherwise as an investment adviser of the Company (except
to the extent specified in Section 36(b) of the 1940 Act concerning loss resulting from a breach of fiduciary duty (as
the same is finally determined by judicial proceedings) with respect to the receipt of compensation for services), and the Company
shall indemnify, defend and protect the Adviser (and its officers, managers, partners, agents, employees, controlling persons,
members and any other person or entity affiliated with the Adviser) (collectively, the “Indemnified Parties”)
and hold them harmless from and against all damages, liabilities, costs, demands, charges, claims and expenses (including reasonable
attorneys’ fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any pending,
threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the
Company or its security holders) arising out of any actions or omissions or otherwise based upon the performance of any of the
Adviser’s duties or obligations under this Agreement or otherwise as an investment adviser of the Company. Notwithstanding
the preceding sentence of this Section 7 to the contrary, nothing contained herein shall protect or be deemed to protect the
Indemnified Parties against or entitle or be deemed to entitle the Indemnified Parties to indemnification in respect of, any liability
to the Company or its security holders to which the Indemnified Parties would otherwise be subject by reason of fraud, willful
misfeasance, bad faith or gross negligence in the performance of the Adviser’s duties or by reason of the reckless disregard
of the Adviser’s duties and obligations under this Agreement (as the same shall be determined in accordance with the 1940
Act and any interpretations or guidance by the SEC or its staff thereunder).

 

8.            Duration
and Termination.

 

(a)            This
Agreement shall become effective as of the first date above written. This Agreement may be terminated at any time, without the
payment of any penalty, upon 90 days’ written notice, (i) by the vote of a majority of the outstanding voting securities
of the Company, (ii) by the vote of the Company’s Board of Directors, or (iii) by the Adviser. The provisions of
Section 7 of this Agreement shall remain in full force and effect, and the Adviser shall remain entitled to the benefits thereof,
notwithstanding any termination of this Agreement. Further, notwithstanding the termination or expiration of this Agreement as
aforesaid, the Adviser shall be entitled to any amounts owed under Section 6 through the date of termination or expiration.

 

    11

     

    

 

(b)            This
Agreement shall continue in effect for two years from the date hereof and thereafter shall continue automatically for successive
annual periods, provided that such continuance is specifically approved at least annually by (A) the vote of the Board of
Directors, or by the vote of a majority of the outstanding voting securities of the Company and (B) the vote of a majority
of the Non-Interested Directors in accordance with the requirements of the 1940 Act.

 

(c)            This
Agreement will automatically terminate in the event of its “assignment” (as such term is defined for purposes of Section 15(a)(4) of
the 1940 Act).

 

9.            Commodity
Futures Trading Commission.

 

In respect of the Company,
the Adviser will rely on an exemption from registration as a commodity trading advisory (“CTA”) under Commodity Futures
Trading Commission Rule 4.14(a)(8) and will provide commodity interest trading advice to the Company as if it were exempt
from registration as a CTA.

 

10.            Notices.

 

Any notice under this
Agreement shall be in writing to the other party at such address as the other party may designate from time to time for the receipt
of such notice and shall be deemed to be received on the earlier of the date actually received or on the fourth day after the postmark
if such notice is mailed first class postage prepaid.

 

11.            Amendment
of this Agreement.

 

This Agreement may
be amended by mutual consent, but the consent of the Company must be obtained in conformity with the requirements of the 1940 Act.

 

12.            Entire
Agreement; Governing Law.

 

This Agreement contains
the entire agreement of the parties and supersedes all prior agreements, understandings and arrangements with respect to the subject
matter hereof. This Agreement shall be construed in accordance with the laws of the State of New York and in accordance with the
applicable provisions of the 1940 Act. In such case, to the extent the applicable laws of the State of New York, or any of the
provisions herein, conflict with the provisions of the 1940 Act, the latter shall control.

 

13.            Miscellaneous.

 

The captions in this
Agreement are included for convenience of reference only and in no way define or delimit any of the provisions hereof or otherwise
affect their construction or effect. If any provision of this Agreement shall be held or made invalid by a court decision, statute,
rule or otherwise, the remainder of this Agreement shall not be affected thereby. This Agreement shall be binding on, and
shall inure to the benefit of the parties hereto and their respective successors.

 

    12

     

    

 

14.            Counterparts.

 

This Agreement may
be executed in counterparts by the parties hereto, each of which shall constitute an original counterpart, and all of which, together,
shall constitute one Agreement.

 

[Remainder of Page Intentionally
Left Blank]

 

    13

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused the foregoing instrument to be executed by their duly authorized officers, all as of the day and
the year first above written.

 

	 	BARINGS CAPITAL INVESTMENT

                                                                          CORPORATION,

	 	a Maryland corporation

 

	 	By:	/s/ Elizabeth Murray
	 	Name:	Elizabeth Murray
	 	Title:	Principal Accounting Officer

 

 

	 	BARINGS LLC,
	 	a Delaware limited liability company

 

	 	By:	/s/ Jonathan Bock
	 	Name:	Jonathan Bock
	 	Title:	Managing Director

 

[Signature
Page to Investment Advisory Agreement]Exhibit
10.2

 

 

[•]
June 2020

 

 

 

Barings LLC

 

 

 

and

 

 

 

Baring International Investment Limited

 

 

 

and

 

 

 

Barings Capital Investment Corporation

 

  

 

 

SUB-ADVISORY AGREEMENT IN RESPECT OF

BARINGS CAPITAL INVESTMENT CORPORATION

 

 

 

 

     

     

    

  

CONTENTS

 

	Clause	Page
	 	 	 
	1.	Definitions	1
	 	 	 
	2.	Appointment of the Sub-Adviser	2
	 	 	 
	3.	Notices	5
	 	 	 
	4.	Compensation	5
	 	 	 
	5.	Representations and Undertakings	5
	 	 	 
	6.	Access to Information	6
	 	 	 
	7.	UK Regulatory Matters	6
	 	 	 
	8.	Termination	6
	 	 	 
	9.	Counterparts	7
	 	 	 
	10.	Governing Law and Jurisdiction	7

 

	SIGNATURE PAGE	 	8
	 	 	 
	SCHEDULE 1	Investment Advisory Agreement	1
	 	 	 
	SCHEDULE 2	Compensation Policy	2
	 	 	 
	SCHEDULE 3	UK Regulatory Matters	3

 

 

     

     

    

 

THIS
SUB-ADVISORY AGREEMENT is made as of the [•]th
day of June 2020 by and between:

 

		(1)	BARINGS LLC, whose principal address is 300 South Tryon Street, Suite 2500, Charlotte, NC
28202, United States of America (“Barings”);

 

		(2)	BARING INTERNATIONAL INVESTMENT LIMITED, whose registered office is at 20 Old Bailey, London
EC4M 7BF, United Kingdom (the “Sub-Adviser”); and

 

		(3)	BARINGS CAPITAL INVESTMENT CORPORATION, whose principal address is 300 South Tryon Street,
Suite 2500, Charlotte, NC 28202, United States of America (the “Client”)

 

WHEREAS: 

 

		(A)	Pursuant to an investment advisory agreement dated June [•],
2020 between the Client and Barings as amended and/or supplemented from time to time (the “Investment Advisory Agreement”),
a copy of which is attached as Schedule 1 hereto, Barings was appointed by the Client to provide investment advisory services to
the Client (such services and others described in the Investment Advisory Agreement, the “Services”).

 

		(B)	Barings wishes to appoint the Sub-Adviser, pursuant to Section 2(d) of the Investment Advisory
Agreement, as a delegate in connection with the Services to be provided under the Investment Advisory Agreement on terms and conditions,
except as provided herein, identical to the terms and conditions under which Barings has been appointed by the Client to provide
Services to the Client. The Client is a party to this Agreement for the purposes of satisfying the conditions set out in Section
2(d) of the Investment Advisory Agreement.

 

		(C)	This Sub-Advisory Agreement provides a framework for the terms on which the Sub-Advisers shall
provide the Services for the Portfolio.

 

NOW IT IS HEREBY AGREED as follows:

 

		1.	Definitions

 

		1.1	In this Sub-Advisory Agreement, the following terms shall have the following meanings:

 

“Compensation Policy”
means the compensation policy set out in Schedule 2 hereto or such other policy as may be agreed between Barings and the Sub-Adviser
in respect of the Portfolio from time to time;

 

“Conflicts Of Interest
Policy” means the conflicts of interest policy of the Sub-Adviser as set out at https://barings-web.azureedge.net/assets/user/media/Global-Conflicts-of-Interest-Policy.pdf
or as otherwise notified to Barings by the Sub-Adviser from time to time;

 

“Data Protection Laws”
means any applicable law regarding the processing, privacy, and use of Personal Data, including the GDPR;

 

“Execution Policy”
has the meaning given to it in Schedule 3;

 

    	 	1	 

     

    

 

“FCA” means
the UK Financial Conduct Authority and any replacement or successor body or bodies;

 

“FCA Handbook”
means the handbook published by the FCA that sets out the rules and guidance made by it from time to time under FSMA;

 

“FCA Rules”
means the rules, evidential provisions and guidance made by the FCA under FSMA as set out in the FCA Handbook and any directly
applicable European Union financial services legislation or rules applicable to the Sub-Adviser, subject to any waiver, modification
or individual guidance from time to time applicable to the Sub-Adviser;

 

“FSMA” means
the UK Financial Services and Markets Act 2000 and any subordinate legislation made under it, or any applicable successor regulatory
regime in the United Kingdom;

 

“GDPR” means
the EU General Data Protection Regulation (2016/679);

 

“Personal Data”
means any personal data (as defined pursuant to article 4(1) of the GDPR) processed by either Party or its approved sub-processor,
in connection with the Sub-Advisory Agreement;

 

“Portfolio”
has the meaning given to it in Clause 2.3;

 

“Services”
has the meaning given to it in Recital (A); and

 

“Sub-Advisory Agreement”
means this sub-advisory agreement (as amended from time to time).

 

		1.2	References in this Sub-Advisory Agreement to any statute or statutory instrument or government
regulations or rules of any regulatory authority shall be to the modification, amendment, extension or re-enactment thereof.

 

		1.3	In this Sub-Advisory Agreement, the masculine shall include the feminine and the neuter and the
singular shall include the plural and vice versa as the context shall admit or require.

 

		1.4	In this Sub-Advisory Agreement, the headings are used for ease of reference only and shall not
be deemed to form any part of this Sub-Advisory Agreement.

 

		1.5	Terms not defined herein are as otherwise defined in the Investment Advisory Agreement.

 

		2.	Appointment of the Sub-Adviser

 

		2.1	Barings hereby appoints the Sub-Adviser (and the Sub-Adviser hereby accepts such appointment) to
act (on a non-exclusive basis) as discretionary investment advisor to Barings in connection with the selection and management of
assets on behalf of the Client.

 

		2.2	The Client confirms that this Sub-Advisory Agreement has been approved in accordance with Section
2(d) of the Investment Advisory Agreement.

 

    	 	2	 

     

    

 

		2.3	Barings shall be responsible for the overall project management of the Client’s portfolio
of assets (the “Portfolio”) and shall be the primary point of contact with the Client.

 

		2.4	Save as expressly varied, the Sub-Adviser shall discharge its obligations hereunder on terms and
conditions that are, as far as possible, identical to the terms and conditions under which Barings itself was appointed to act
as an investment adviser to the Client in the Investment Advisory Agreement. The Sub-Adviser shall be entitled to rely on the accuracy
of all representations and warranties made in the Investment Advisory Agreement by the parties to the Investment Advisory Agreement
and, save as expressly varied herein, shall be entitled to the same rights and protections as if it were the Adviser under the
Investment Advisory Agreement. The Sub-Adviser shall be subject to Barings’ oversight and review in relation to the matters
set out or otherwise contemplated by this Sub-Advisory Agreement.

 

		2.5	In the event that Barings and the Client agree to an amendment of the Investment Advisory Agreement,
Barings shall provide the Sub-Adviser with reasonable advance written notice of any such amendment. Unless the Sub-Adviser objects
in writing to such amendment within three days of receipt of such
notification, it shall be deemed to have accepted such amendment and the terms of this Sub-Advisory Agreement shall be deemed to
have been amended accordingly.

 

		2.6	Without limiting in any way its other obligations under this Sub-Advisory Agreement and save as
set out herein, the Sub-Adviser agrees that it shall comply with the provisions of the Investment Advisory Agreement as if it was
originally party thereto as the Adviser, save that all reporting and disclosure shall be made to Barings rather than directly to
the Client. For the avoidance of doubt, the Sub-Adviser shall be deemed to satisfy such requirements if such reporting and disclosure
is made to Barings within the timeframes set forth in the Investment Advisory Agreement for Barings to report to the Client. Save
as provided in the Investment Advisory Agreement, the Sub-Adviser
shall follow its own policies and procedures in the performance of its
duties hereunder.

 

		2.7	The Sub-Adviser and Barings shall supply information to each other promptly on demand as may be
necessary or desirable to enable the Sub-Adviser and Barings to fulfil their respective obligations under this Sub-Advisory Agreement
and the Investment Advisory Agreement.

 

		2.8	The Sub-Adviser shall, pursuant to the terms of the Investment Advisory Agreement, provide Barings
with reports and with all information, details, reports, records and documents it requires in its capacity as the Adviser under
the Investment Advisory Agreement.

 

		2.9	A power of attorney containing the list of the persons authorised to sign documentation and give
instructions (including, for the avoidance of doubt and without limitation, the execution of brokerage agreements and other terms
and conditions and master agreements with appropriate counterparties) on behalf of the Sub-Adviser in relation to the performance
by the Sub-Adviser of its obligations hereunder and executed by the Sub-Adviser, as may be updated from time to time, will be provided
to Barings upon request.

 

    	 	3	 

     

    

 

		2.10	It is confirmed that, for the avoidance of doubt, Barings shall maintain oversight responsibilities
for the Sub-Adviser’s activities as they relate to the Portfolio (including the Sub-Adviser’s compliance with the requirements
set out, referred to or contemplated by the Investment Advisory Agreement), but that the Sub-Adviser will not be under the day-to-day
direction and supervision of Barings. Barings will not exercise significant control over, or provide detailed instructions in relation
to, the Sub-Adviser’s general advisory and management activities under this Sub-Advisory Agreement, other than as required
to ensure the Sub-Adviser’s compliance with the Investment Advisory Agreement and applicable law and regulation; provided
however, that Barings will retain ultimate discretion over the selection, acquisition and disposal of assets to or from the
Portfolio.

 

		2.11	Without the prior written consent of Barings and the Client, the Sub-Adviser shall not appoint
an agent or delegate to perform any of its duties under this Sub-Advisory Agreement or exercise any of its rights and powers hereunder.
In the event that the Sub-Adviser appoints an agent or delegate, the Sub-Adviser shall be liable to Barings in relation to such
agent or delegate to the same extent as Barings would have been liable to the Client under the Investment Advisory Agreement had
such appointment been made by it.

 

		2.12	Following a request from the Client, Barings shall be entitled to subrogate its rights under this
Sub-Advisory Agreement to the Client.

 

		2.13	Section 6 (Compensation of the Adviser) of the Investment Advisory Agreement shall not apply
to this Sub-Advisory Agreement and the Sub-Adviser's compensation for the provision of its services hereunder shall be as provided
in Clause 4 and Schedule 2 hereto. Notwithstanding the foregoing, Barings shall be solely responsible for paying compensation to
the Sub-Adviser hereunder.

 

		2.14	Barings hereby delegates to the Sub-Adviser the power to exercise all other ancillary rights or
duties in connection with the Portfolio including, to the extent necessary, executing any trade documentation or other documentation
related to the management of the Portfolio granted by the Client to Barings under the Investment Advisory Agreement. When executing
such documentation, the Sub-Adviser shall use the following form of execution:

 

 

	 	Barings Capital Investment Corporation
	 	 
	 	By: Baring International Investment Limited as Sub-Adviser and Attorney-in-fact
	 	 

  

	 	By: 	 

 

 

    	 	4	 

     

    

 

The Sub-Adviser shall not sub-delegate
this power, provided that the Sub-Adviser may appoint any notary or any individual employed by, or who is a member of, an external
legal firm, as the Sub-Adviser’s true and lawful attorney with full power and authority in its name and on its behalf, to
sign or to execute and deliver any guarantee or security document or other documents or deeds that are necessary or desirable to
be executed by the Sub-Adviser outside of London in connection with any investment, asset or instrument forming part of the Portfolio.

 

		2.15	The following data protection provisions are applicable between the parties hereto:

 

		2.15.1	The Sub-Adviser will comply (and will ensure that any third party to which personal data is passed
will comply) with Barings’ instructions in relation to the holding, obtaining and processing of Personal Data relating to
the Portfolio.

 

		2.15.2	Barings undertakes to supply Personal Data to the Sub-Adviser in accordance with the provisions
of the Data Protection Laws.

 

		2.15.3	Each of the parties hereto agrees to:

 

		(a)	be responsible for any Personal Data it may process in relation to the Sub-Advisory Agreement;

 

		(b)	comply with GDPR and any other Data Protection Laws, applicable to the collection and processing
of the Personal Data;

 

		(c)	take appropriate technical and organisational measures against unauthorised or unlawful processing
of Personal Data and against accidental loss or destruction of, or damage to, the Personal Data; and

 

		(d)	agree respective responsibilities for exercising of data subject rights and providing notice in
respect of data breach reporting obligations.

 

		3.	Notices

 

Any notice under this Sub-Advisory
Agreement shall be in writing to the other party at such address as the other party may designate from time to time for the receipt
of such notice and shall be deemed to be received on the earlier of the date actually received or on the fourth day after the postmark
if such notice is mailed first class postage prepaid.

 

4.       Compensation

 

The Sub-Adviser
shall be compensated by Barings (and not the Client) for its services under this Sub-Advisory Agreement in accordance with the
Compensation Policy set out in Schedule 2 hereto.

 

5.       Representations
and Undertakings

 

		5.1	Barings hereby represents and warrants to the Sub-Adviser that it has full power and authority
to enter into this Sub-Advisory Agreement and that it has been granted full power and authority by the Client to retain the Sub-Adviser
to provide advisory services and assist with the management of the Portfolio on the terms set out in this Sub-Advisory Agreement.
Barings confirms that it has received a copy of Parts 2A and 2B of the Sub-Adviser’s Form ADV and a copy of the Sub-Adviser’s
Privacy Notice.

 

    	 	5	 

     

    

 

		5.2	The Sub-Adviser hereby represents and warrants to Barings that it has full power and authority
to enter into this Sub-Advisory Agreement, and further represents that it is (a) registered as an investment adviser under the
U.S. Investment Advisers Act of 1940, as amended and (b) authorized and regulated by the FCA in the conduct of its investment business.

 

6.       Access
to Information

 

The Sub-Adviser
shall supply Barings with whatever information it may reasonably request (a) in relation to the Portfolio, (b) in order to discharge
its oversight responsibilities for the Sub-Adviser’s activities and (c) to respond to any requests that Barings may receive
from the Client or any relevant regulatory body (or, in each case, their respective agents or advisors).

 

7.       UK
Regulatory Matters

 

The Sub-Adviser
is required by the FCA Rules to make certain disclosures and seek certain consents in its terms of business with its clients. These
are set out in Schedule 3 hereto.

 

8.       Duration
and Termination

 

8.1 This Sub-Advisory Agreement
shall become effective on the effective date of the Investment Advisory Agreement, as set forth in Section 8 of the Investment
Advisory Agreement, and may be terminated at any time, without the payment of any penalty, upon 60 days’ written notice,
(i) by the vote of a majority of the outstanding voting securities of the Client, (ii) by the vote of the Client’s Board
of Directors, (iii) by Barings or (iv) by the Sub-Adviser.

 

8.2 This Sub-Advisory Agreement
shall continue in effect for two years from its initial effective date and thereafter shall continue automatically for successive
annual periods, provided that such continuance is specifically approved at least annually by (A) the vote of the Client’s
Board of Directors, or by the vote of a majority of the outstanding voting securities of the Client and (B) by the vote of a majority
of the Client’s Board of Directors, who are not “interested persons” (as such term is defined in Section 2(a)(19)
of Investment Company Act of 1940, as amended (the “1940 Act”)) of the Adviser, any sub-adviser, or of the Client,
unless otherwise terminated hereunder. This Sub-Advisory Agreement shall terminate automatically if any of the following events
occur:

 

		(a)	the “assignment” (as such term is defined for purposes of Section 15(a)(4) of the 1940
Act) of either the Investment Advisory Agreement or this Sub-Advisory Agreement; or

 

		(b)	the termination of the Investment Advisory Agreement.

 

8.3 For the avoidance of doubt,
this Sub-Advisory Agreement may also be terminated by Barings without penalty for any reason upon 60 days’ written notice
to the Sub-Adviser or by the Sub-Adviser without penalty for any reason upon 60 days’ written notice to Barings. Additionally,
Barings may terminate this Sub-Advisory Agreement immediately in the event Barings determines in its sole discretion that the Sub-Adviser
has materially breached any term of this Sub-Advisory Agreement and the Sub-Adviser has failed to cure such breach within 20 days
of notice from Barings of such breach. Furthermore, in the event that the Sub-Adviser determines in its sole discretion that it
may no longer perform its obligations under this Sub-Advisory Agreement due to changes in applicable law, due to take effect within
a timescale rendering it impossible for the Sub-Adviser to terminate on 60 days’ written notice, this Sub-Advisory Agreement
may be terminated by the Sub-Adviser on such written notice to Barings as the Sub-Adviser can reasonably give. Upon such termination,
Barings shall pay the Sub-Adviser the fees due to the Sub-Adviser for services rendered prior to the date of termination as provided
in the Compensation Policy.

 

    	 	6	 

     

    

 

		9.	Counterparts

 

This Sub-Advisory Agreement may
be executed in any number of counterparts. Each such counterpart shall for all purposes be deemed to be an original and all such
counterparts together shall constitute one and the same instrument.

 

		10.	Governing Law and Jurisdiction

 

For the avoidance
of doubt, this Sub-Advisory Agreement is subject to Section 12 of the Investment Advisory Agreement.

 

 

    	 	7	 

     

    

 

SIGNATURE
PAGE

 

IN WITNESS WHEREOF the parties hereto
have caused this Sub-Advisory Agreement to be duly executed as a deed the day and year first above written.

 

	EXECUTED and DELIVERED as a DEED by	)	 
	BARINGS LLC	)	 
	acting by:	)	 
	 	 	 
	 	 	 

	Signed in the presence of: 	 
	 	 
	 	 	(Name)	 
	 	 	(Address)	 
	 	 	(Occupation)	 

 

 

 

	EXECUTED and DELIVERED as a DEED by	)	 
	BARING INTERNATIONAL INVESTMENT LIMITED	)	 
	acting by:	)	 
	 	 	 

 

	Signed in the presence of: 	 
	 	 
	 	 	(Name)	 
	 	 	(Address)	 
	 	 	(Occupation)	 

 

 

	EXECUTED and DELIVERED as a DEED by	)	 
	BARINGS CAPITAL INVESTMENT CORPORATION	)	 
	acting by:	)	 

 

 

	Signed in the presence of: 	 
	 	 
	 	 	(Name)	 
	 	 	(Address)	 
	 	 	(Occupation)	 

 

 

    	 	8	 

     

    

 

EXECUTION POLICY – EXPRESS CONSENT

 

Barings LLC expressly consents to orders
being executed outside EU regulated markets, multilateral trading facilities and organised trading facilities, where to do so is
in accordance with Baring International Investment Limited’s execution policy.

 

 

 

__________________________
Date __________________

 

Signed by

 

    	 	9	 

     

    

 

SCHEDULE
1  

Investment Advisory Agreement

 

 

     

     

    

 

SCHEDULE
2  

Compensation Policy

 

Under the Investment Advisory Agreement,
Barings will be paid a management fee by the Client quarterly in arrears (such total fee amount, the “Barings Fee”).

 

Promptly after receipt of the Barings Fee
for each quarter, Barings shall calculate and pay to the Sub-Adviser in compensation for the services provided by the Sub-Adviser
under this Sub-Advisory Agreement a portion of the Barings Fee, the amount of which shall be as agreed between Barings and the
Sub-Adviser from time to time.

 

     

     

    

 

SCHEDULE
3     

UK Regulatory Matters

 

		1.	Client Categorisation

 

The
Sub-Adviser has categorised Barings as a professional client
and the Sub-Adviser will provide its services hereunder
on that basis. Retail clients (as defined in the Glossary to the FCA Handbook) benefit from a higher degree of protection under
the FCA Rules than professional clients.

 

Barings
has the right to request the Sub-Adviser to categorise it
as a retail client, either generally or in specific circumstances. However, it should be noted that it is not the Sub-Adviser’s
policy to accept requests to be treated as a retail client for any service provided in accordance with the Sub-Advisory
Agreement.

 

It
is Barings’ sole responsibility to keep the Sub-Adviser informed
about any change to the Barings’ circumstances which could affect the Sub-Adviser’s
categorisation of Barings as a professional client.

 

		2.	Order Handling and Best Execution

 

Whenever the Sub-Adviser executes
an order for Barings in relation to a financial instrument covered by the EU Markets in Financial Instruments Directive ("MiFID")1
(including an order which results from the exercise of its discretion), the Sub-Adviser is required by the FCA Rules to take all
sufficient steps to obtain the best result for Barings in accordance with the Sub-Adviser's order execution policy (the "Execution
Policy"). The Sub-Adviser is subject to similar obligations when it transmits an order to another entity for execution.

 

A copy of the current Execution
Policy can be found at https://barings-web.azureedge.net/assets/user/media/Barings-Execution-Policy.pdf. The Sub-Adviser
may update the Execution Policy from time to time and shall notify Barings of any material changes to it.

 

The Execution Policy summarises
the way in which the Sub-Adviser complies with its trading obligations under the FCA Rules. The Sub-Adviser will inform Barings
of any material change to the Execution Policy.

 

The Execution Policy contemplates
that the Sub-Adviser may execute an order outside of an EU-regulated market, organised trading facility or multilateral trading
facility. Where this is contemplated the Sub-Adviser is required to obtain Barings’s prior express consent. By signing this
Sub-Advisory Agreement, Barings consents to the Execution Policy and specifically consents to the Sub-Adviser executing transactions
on its behalf outside an EU-regulated market, organised trading facility or multilateral trading facility.

 

 

 

		1	“MiFID” means Directive 2014/65/EU on markets
in financial instruments, Regulation (EU) No 600/2014 on markets in financial instruments, and any secondary legislation, rules,
regulations and procedures made pursuant thereto.

 

     

     

    

 

Specific instructions from Barings
in relation to the execution of orders may prevent the Sub-Adviser from following the Execution Policy in relation to such orders
in respect of the elements of execution covered by the instructions.

 

Pursuant to its obligations
under this Sub-Advisory Agreement, the Sub-Adviser may aggregate orders for Barings with orders for its other clients. The Sub-Adviser
is required, by the FCA Rules, to notify Barings that, on some occasions, the effect of aggregation may work to the disadvantage
of Barings in relation to a particular order.

 

		3.	Investment Objectives

 

When the Sub-Adviser makes an
investment recommendation to Barings or manages its investments, the Sub-Adviser is obliged by FCA Rules to take reasonable steps
to ensure that its decision to trade is “suitable” for Barings as per the FCA Rules. The Sub-Adviser is obliged to
take into account Barings’s investment objectives. For this purpose, the Sub-Adviser understands that Barings’s investment
objectives are as set out in the Investment Advisory Agreement and such ancillary documentation relating to the investment objectives
of the Portfolio as Barings may supply to the Sub-Adviser from time to time.

 

As Barings is a professional
client, the Sub-Adviser is entitled to assume that Barings has the necessary level of experience and knowledge in order to understand
the risks involved in the transaction(s) or in the management of the Portfolio. Unless notified to the contrary by Barings, the
Sub-Adviser shall be entitled to assume that this remains the case for the duration of the Sub-Advisory Agreement.

 

Any brokers the Sub-Adviser
uses to execute orders which it carries out for Barings may also be required by FCA Rules to assess the suitability of those orders
for Barings. Barings agrees that the Sub-Adviser's understanding of Barings’s investment objectives is correct and consents
to the Sub-Adviser making those investment objectives, and any relevant regulatory consents given in this Sub-Advisory Agreement,
known to brokers and others where reasonably required in connection with the provision of the Sub-Adviser's services.

 

		4.	Limit Orders

 

If Barings provides the Sub-Adviser
with or the Sub-Adviser generates a limit order in respect of shares admitted to trading on an EEA-regulated market which is not
immediately executed under prevailing market conditions, the FCA Rules require the Sub-Adviser, in certain circumstances, to make
that order (each a “Client Limit Order”) public immediately unless it has Barings’s consent not to do
so. It may not always be in Barings’s best interests to make an unexecuted order public in this way. Accordingly, by signing
this Sub-Advisory Agreement, Barings instructs the Sub-Adviser not to make public immediately a Client Limit Order in respect of
shares admitted to trading on an EEA-regulated market which is not immediately executed under prevailing market conditions, unless
the Sub-Adviser decides in its absolute discretion that it is appropriate to do so.

 

		5.	Conflicts Of Interest

 

The FCA Rules require the Sub-Adviser
to take all appropriate steps to identify and to prevent or manage conflicts of interest between (i) the Sub-Adviser (and its staff)
and Barings; and (ii) Barings and the Sub-Adviser's other clients.

 

     

     

    

 

If the arrangements the Sub-Adviser
makes to prevent or manage conflicts of interest are not sufficient to ensure, with reasonable confidence, that risks of damage
to the interests of Barings will be prevented, it is obliged to disclose the general nature and sources of conflicts of interest
to Barings, in order to enable Barings to make an informed decision about the Sub-Adviser's services.

 

A copy of the Sub-Adviser Conflicts
of Interest Policy can be found at https://barings-web.azureedge.net/assets/user/media/Global-Conflicts-of-Interest-Policy.pdf.
The Sub-Adviser will inform Barings of any material change to the policy.

 

		6.	Risk Warnings

 

The Sub-Adviser is obliged
under the FCA Rules to provide Barings with a general description of the nature and risks of the investments included in the Portfolio.
Those investments may include shares, bonds, warrants, interests in syndicated loans and other types of security and derivative
described in the Investment Advisory Agreement. The Sub-Adviser is obliged to inform Barings about such risks as failure of security,
loss of capital, volatility, illiquidity, leverage and contingent liabilities. Barings is a sophisticated institutional investor
and has agreed with the Sub-Adviser that it is not appropriate for the Sub-Adviser to provide more detailed risk warnings. However,
more details about the risks involved are available on request.

 

		7.	Compensation and Complaints

 

The Sub-Adviser is not covered
by the UK Financial Services Compensation Scheme. All formal complaints by Barings relating to the services provided by the Sub-Adviser
under this Agreement should in the first instance be made in writing to the compliance officer of the Sub-Adviser. A copy of the
Sub-Adviser's complaints management policy is available on request and will otherwise be provided in accordance with the FCA Rules.

 

		8.	Reporting

 

The FCA Rules require the Sub-Adviser
to provide Barings with periodic statements in a particular form in respect of the Portfolio, except where Barings has agreed that
it does not wish to receive statements in such format. Barings confirms that it does not require periodic statements.

 

Barings acknowledges that it
does not wish to receive from the Sub-Adviser information under Article 50 (Costs and associated charges disclosure) and Article
62 (10% Portfolio Depreciation Notifications) of the MiFID Org Regulation.  Barings will obtain the relevant information from
internal systems to provide portfolio reporting to Barings Capital Investment Corporation.  

 

		9.	Fees, Commissions and Non-Monetary Benefits

 

The Sub-Adviser will pay directly
from its own resources for all research (as defined in the FCA Rules) received from third parties in connection with the provision
of its services to Barings.

 

     

     

    

 

The Sub-Adviser may make payments
to third parties in connection with the services it provides under this Sub-Advisory Agreement, which may relate to due diligence,
protection of Barings’s rights and the completion of the legal and accounting steps required to enter into transactions or
to exercise any rights under a transaction where the Sub-Adviser considers that these either (i) are designed to enhance the quality
of the relevant service to Barings, and will not impact compliance with the Sub-Adviser’s duty to act honestly, fairly and
professionally in the best interests of Barings, or (ii) enable or are necessary for the provision of the services under the Sub-Advisory
Agreement.

 

Minor non-monetary
benefits

 

Under
the FCA Rules, in the course of providing portfolio management services to the Investment Manager, the Sub-Adviser is
prohibited from accepting and retaining any fees, commission or monetary benefits, or accepting any non-monetary benefits (other
than acceptable minor non-monetary benefits and research which is permitted), where these are paid or provided by any third party
or a person acting on their behalf.

 

Where
the Sub-Adviser receives any such fees, commissions or monetary
benefits, it will transfer these to the Barings account and will
inform Barings in the periodic statement to be provided in accordance
with the provisions on reporting of any such fees, commissions or monetary benefits that were received and transferred to Barings
during the relevant period.

 

The
Sub-Adviser may accept and retain fees, commissions or non-monetary
benefits which are paid or provided to the Sub-Adviser by a person
acting on behalf of the Investment Manager, provided that person is aware that such payments have been made on Barings’
behalf and the amount and frequency of the payment is agreed in writing
between Barings and the Sub-Adviser and
not determined by a third party.

 

The
following benefits received by the Sub-Adviser in the course of
providing services to Barings will be considered to be acceptable
minor non-monetary benefits for the purposes of this section:

 

		(a)	information or documentation relating to a financial instrument or investment service that is generic
in nature or personalised to reflect the circumstances of an individual client;

 

		(b)	written material from a third party that is commissioned and paid for by a corporate issuer or
potential issuer to promote a new issuance by the issuer, or where the third party firm is contractually engaged and paid by the
issuer to produce such material on an ongoing basis, provided that the relationship is clearly disclosed in the material and that
the material is made available at the same time to any firms wishing to receive it or to the general public;

 

		(c)	participation in conferences, seminars and other training events on the benefits and features of
a specific financial instrument or an investment service;

 

		(d)	hospitality of a reasonable de minimis value, including food and drink during a business meeting
or a conference, seminar or other training event specified in this section;

 

     

     

    

 

		(e)	research relating to an issue of shares, debentures, warrants or certificates representing certain
securities by an issuer, which is:

 

		(i)	produced prior to the issue being completed by a person that is providing underwriting or placing
services to the issuer on that issue; and

 

		(ii)	made available to prospective investors in the issue; and

 

		(f)	research that is received so that the
Sub-Adviser may evaluate the research provider’s research
service, provided that:

 

		(i)	it is received during a trial period that lasts no longer than three months;

 

		(ii)	no monetary or non-monetary consideration is due (whether during the trial period, before or after)
to the research provider for providing the research during the trial period;

 

		(iii)	the trial period is not commenced with the research provider within 12 months from the termination
of an arrangement for the provision of research (including any previous trial period) with the research provider; and

 

		(iv)	the Sub-Adviser makes
and retains a record of the dates of any trial period accepted under this section, as well as a record of how the conditions in
(i) to (iii) were satisfied for each such trial period,

 

provided
that, in the Sub-Adviser’s view, the minor non-monetary benefit
is:

 

		(a)	capable of enhancing the quality of the
service provided by the Sub-Adviser to Barings;

 

		(b)	of a scale and nature that it could not
be judged to impair the Sub-Adviser’s compliance with its
duty to act honestly, fairly and professionally in the best interests of Barings;
and

 

		(c)	reasonable, proportionate and of a scale
that is unlikely to influence the Sub-Adviser’s behaviour
in any way that is detrimental to the interests of Barings.

 

		10.	Recording Communications 

 

The Sub-Adviser will record
telephone conversations and electronic communications, including communications with Barings which result or may result in transactions
for the Client. A copy of the recoding of such conversations and communications will be available to Barings on request to the
Sub-Adviser for a period of five years and, where requested by the FCA, for a period of up to seven years.

 

		11.	Transaction Reporting and Use of Confidential Information

 

MiFID imposes certain transaction
and position reporting obligations on clients in relation to their investments, including the procurement of a valid Legal Entity
Identifier (LEI). Clients are responsible for (i) providing all the necessary information and documentation under these obligations;
and (ii) taking any action reasonably required by the firm in relation to these obligations.

 

     

     

    

 

In order to report details of
our client transactions, the Sub-Adviser may need to disclose confidential information to a regulatory authority, via a third party,
where such disclosure is required to enable it to assist in complying with reporting obligations in connection with the Sub-Advisory
Agreement.

 

		12.	Exclusion of Liability Under the Regulatory System

 

The Sub-Adviser confirms that
nothing in this Sub-Advisory Agreement seeks to exclude or restrict any duty or liability owed to Barings under the Regulatory
System (as defined in the Glossary to the FCA Handbook).

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