Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended March 31, 2026
☐Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number: 814-00754
SLR INVESTMENT CORP.
(Exact name of registrant as specified in its charter)
Maryland
26-1381340
(State of Incorporation)
(I.R.S. Employer
Identification No.)
500 Park Avenue
New York, N.Y.
10022
(Address of principal executive offices)
(Zip Code)
(212) 993-1670
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading
Symbol(s)
Name of Each Exchange
on Which Registered
Common Stock, par value $0.01 per share
SLRC
The NASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐ No☒
The number of shares of the registrant’s Common Stock, $0.01 par value, outstanding as of May 1, 2026 was 54,554,634.
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2026
TABLE OF CONTENTS
PAGE
PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
Consolidated Statements of Assets and Liabilities as of March 31, 2026 (unaudited) and December 31, 2025
3
Consolidated Statements of Operations for the three months ended March 31, 2026 (unaudited) and the three months ended March 31, 2025 (unaudited)
4
Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2026 (unaudited) and the three months ended March 31, 2025 (unaudited)
5
Consolidated Statements of Cash Flows for the three months ended March 31, 2026 (unaudited) and the three months ended March 31, 2025 (unaudited)
6
Consolidated Schedule of Investments as of March 31, 2026 (unaudited)
7
Consolidated Schedule of Investments as of December 31, 2025
15
Notes to Consolidated Financial Statements (unaudited)
23
Report of Independent Registered Public Accounting Firm
46
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
47
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
69
Item 4.
Controls and Procedures
70
PART II. OTHER INFORMATION
Legal Proceedings
71
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits
72
Signatures
73
In this Quarterly Report, “Company,” “we,” “us,” and “our” refer to SLR Investment Corp. unless the context states otherwise.
Item 1. Financial Statements
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share and per share amounts)
March 31, 2026(unaudited)
December 31,2025
Assets
Investments at fair value:
Companies less than 5% owned (cost: $1,073,426 and $1,092,009, respectively)
$
1,067,780
1,092,822
Companies 5% to 25% owned (cost: $110,951 and $109,346, respectively)
99,351
98,067
Companies more than 25% owned (cost: $959,453 and $953,384, respectively)
946,073
933,923
Cash
11,188
15,716
Cash equivalents (cost: $388,944 and $348,585, respectively)
388,944
348,585
Dividends receivable
13,655
15,178
Interest receivable
11,995
11,865
Receivable for investments sold
—
55,271
Prepaid expenses and other assets
1,425
1,137
Total assets
2,540,411
2,572,564
Liabilities
Debt ($1,145,443 and $1,154,436 face amounts, respectively, reported net of unamortized debt issuance costs of $7,236 and $8,082, respectively. See note 7)
1,138,207
1,146,354
Payable for investments and cash equivalents purchased
402,727
Management fee payable (see note 3)
7,784
7,956
Performance-based incentive fee payable (see note 3)
4,445
5,384
Interest payable (see note 7)
6,813
9,269
Administrative services payable (see note 3)
1,446
3,127
Other liabilities and accrued expenses
2,022
1,754
Total liabilities
1,549,661
1,576,571
Commitments and contingencies (see note 9)
Net Assets
Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized, respectively, and 54,554,634 and 54,554,634 shares issued and outstanding, respectively
546
Paid-in capital in excess of par
1,115,023
Accumulated distributable net loss
(124,819
)
(119,576
Total net assets
990,750
995,993
Net Asset Value Per Share
18.16
18.26
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three months ended
March 31, 2026
March 31, 2025
INVESTMENT INCOME:
Interest:
Companies less than 5% owned
27,940
29,174
Companies 5% to 25% owned
1,211
1,224
Companies more than 25% owned
3,966
3,235
Dividends:
844
770
14,022
17,796
Other income:
1,190
874
114
105
Total investment income
49,287
53,178
EXPENSES:
Management fees (see note 3)
7,513
Performance-based incentive fees (see note 3)
4,459
5,526
Interest and other credit facility expenses (see note 7)
16,382
15,840
Administrative services expense (see note 3)
1,361
Other general and administrative expenses
1,380
835
Total expenses
31,451
31,075
Performance-based incentive fees waived (see note 3)
(14
(2
Net expenses
31,437
31,073
Net investment income
17,850
22,105
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:
Net realized loss on investments and cash equivalents (companies less than 5% owned)
(27
(422
Net change in unrealized gain (loss) on investments and cash equivalents:
(6,458
(2,780
(321
(2,027
6,080
3,050
Net change in unrealized gain (loss) on investments and cash equivalents
(699
(1,757
Net realized and unrealized gain (loss) on investments and cash equivalents
(726
(2,179
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
17,124
19,926
EARNINGS PER SHARE (see note 5)
0.31
0.37
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
(in thousands, except share amounts)
Increase (decrease) in net assets resulting from operations:
Net realized loss
Net change in unrealized gain (loss)
Net increase in net assets resulting from operations
Distributions to stockholders:
From net investment income
(17,850
(22,105
From return of capital
(4,517
(262
Net distributions to stockholders
(22,367
Total decrease in net assets
(5,243
(2,441
Net assets at beginning of period
992,926
Net assets at end of period
990,485
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)
Cash Flows from Operating Activities:
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Net realized loss on investments and cash equivalents
27
422
Net change in unrealized (gain) loss on investments
699
1,757
Deferred financing costs/market discount amortization
846
758
Net accretion of discount on investments
(2,161
(1,604
(Increase) decrease in operating assets:
Purchase of investments
(118,689
(193,471
Proceeds from disposition of investments
137,344
194,902
Capitalization of payment-in-kind income
(5,621
(1,713
Collections of payment-in-kind income
9
942
237
(130
348
1,523
(2,048
(288
(593
Increase (decrease) in operating liabilities:
(13,783
49,564
Management fee payable
(172
(226
Performance-based incentive fee payable
(939
(397
Administrative services expense payable
(1,681
752
Interest payable
(2,456
(1,796
268
381
Net Cash Provided by Operating Activities
67,191
68,141
Cash Flows from Financing Activities:
Cash distributions paid
Proceeds from unsecured borrowings
49,820
Repayment of unsecured borrowings
(85,000
Proceeds from secured borrowings
75,000
244,474
Repayment of secured borrowings
(83,993
(202,334
Net Cash Used in Financing Activities
(31,360
(15,407
NET INCREASE IN CASH AND CASH EQUIVALENTS
35,831
52,734
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
364,301
414,271
CASH AND CASH EQUIVALENTS AT END OF PERIOD
400,132
467,005
Supplemental disclosure of cash flow information:
Cash paid for interest
17,992
16,878
CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)
(in thousands, except share/unit amounts)
Description
Industry
SpreadAboveIndex(7)
Floor
InterestRate(1)
AcquisitionDate
MaturityDate
ParAmount
Cost
FairValue
Senior Secured Loans — 125.1%
First Lien Bank Debt/Senior Secured Loans
33Across Inc.
Media
P+200
8.50
%
10.50
1/2024
10/2027
1,723
Alkeme Intermediary Holdings, LLC(16)
Insurance
S+500
1.00
8.70
9/2023
5/2027
17,341
17,138
All States Ag Parts, LLC(16)
Trading Companies & Distributors
S+650(12)
10.46
4/2022
9/2026
2,312
2,307
BayMark Health Services, Inc.(16)
Health Care Providers & Services
8.96
6/2027
8,179
8,087
7,770
Bayside Opco, LLC(23)
S+725
11.10
5/2023
5/2026
20,052
Bayside Parent, LLC(23)
S+1000(11)
13.85
7,172
BDG Media, Inc.
P+525
5.50
12.00
7/2022
7/2026
5,003
Blazing Star Parent, LLC(16)
Consumer Staples Distribution & Retail
S+700
10.67
8/2025
8/2030
16,190
15,976
CC SAG Holdings Corp.(Spectrum Automotive)(16)
Diversified Consumer Services
S+525
0.75
8.92
6/2021
6/2028
28,682
28,426
Clifford Loan Ventures, LLC & Clifford Preferred Ventures Holdings LLC(3)
Capital Markets
9/2025
9/2028
17,506
17,272
Copper River Seafoods, Inc.
Food Products
8.75
12/2023
4/2028
1,466
CVAUSA Management, LLC(16)
5/2029
18,582
18,390
DeepIntent, Inc.
P+135
3.90
8.10
9/2030
2,340
Enhanced Permanent Capital, LLC(3)
S+625
9.94
12/2020
6/2029
55,106
54,211
54,142
EyeSouth Eye Care Holdco LLC(16)
S+550
9.27
10/2022
10/2029
2,537
2,486
FE Advance, LLC & Sonic ACA Advance LLC(16)
Financial Services
S+650
10.17
7/2024
7/2027
20,894
20,685
Fertility (ITC) Investment Holdco, LLC
8.57
1/2023
1/2029
22,083
21,722
Human Interest Inc.(16)
Professional Services
9.92
6/2022
20,104
20,305
20,356
iCIMS, Inc.(16)
Software
S+575
9.42
8/2022
8/2028
25,162
24,979
Infillion Inc.
P+175
5/2025
19,804
Insight Capital Solutions, LLC
6/2025
10/2030
45,000
44,589
Kingsbridge Holdings, LLC(2)
Multi-Sector Holdings
10.82
12/2018
12/2027
142,500
142,367
Logix Holding Company, LLC(16)
Communications Equipment
S+750(14)
2.00
11.17
9/2018
12/2028
10,524
Luxury Asset Capital, LLC(16)
Consumer Finance
S+675
10.53
30,500
30,311
Lyneer Staffing Solutions, LLC
P+100
7.75
4/2025
41,498
Maxor Acquisition, Inc.(16)
S+600
9.77
3/2023
3/2029
18,976
18,664
OIS Management Services, LLC
S+475
8.45
10/2025
11/2028
9,438
9,352
One Touch Direct, LLC
Commercial Services & Supplies
P+75
4.00
7.50
3/2027
4,173
Pinnacle Fertility, Inc.
8.87
3/2025
3/2028
976
949
Plastic Management, LLC(16)
8.66
8/2027
24,371
23,986
Quantcast Corporation
6/2024
7,076
7,012
ReFocus Management Services, LLC
2/2026
2/2029
10,248
10,048
10,043
RQM+ Corp.(16)
Life Sciences Tools & Services
S+725(11)
11.21
8/2021
8/2029
25,988
25,739
20,790
Sherwood Management Co., Inc.
Specialty Retail
8.93
3/2030
7,601
7,534
Shoes for Crews Global, LLC
S+650(25)
3,417
Sightly Enterprises, Inc.
P+475
6.00
11.50
12/2026
1,872
SLR Healthcare ABL (2)(3)(21)
10.16
4/2026
1,800
Southern Lifting and Hoisting, LLC
Transportation Infrastructure
P+25
7.00
1/2025
1/2027
18,601
Southern Orthodontic Partners Management, LLC
8.41
7/2029
19,025
18,862
Southern Transport LLC
11,869
SPAR Marketing Force, Inc.
P+125
8.00
13,544
Stella & Chewy's, LLC(16)
11,780
11,654
CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)
Senior Secured Loans (continued)
Streamland Media Holdings LLC
S+400
7.67
5/2030
7,147
7,092
SunMed Group Holdings, LLC(16)
Health Care Equipment & Supplies
14,637
14,475
SunMed Receivables I, LLC
S+395
7.62
1,906
1,890
TAUC Management, LLC(16)
S+700(11)
2/2027
6,434
6,371
5,533
The Children's Place, Inc.(16)
12/2025
12/2030
27,291
26,900
26,881
The Townsend Company, LLC(16)
8.67
8/2023
13,385
13,142
Tilley Distribution, Inc.(16)
9.82
3,508
3,473
3,438
TPC 2022, LLC
12/2024
20,000
19,878
United Digestive MSO Parent, LLC(16)
9.40
14,389
14,132
Velocity One, LLC
Aerospace & Defense
S+425
7.92
6/2030
5,250
5,193
Western Veterinary Partners LLC(16)
45,500
45,088
Wilbur-Ellis Holdings II, LLC
Fertilizer & Agricultural Chemicals
9,761
WMD Funding, LLC(11)
7/2031
22,603
Total First Lien Bank Debt/ Senior Secured Loans
957,907
956,921
First Lien Life Science Senior Secured Loans
Arcutis Biotherapeutics, Inc.(3)
Pharmaceuticals
S+595
2.50
9.61
12/2021
33,425
35,207
36,934
Ardelyx, Inc.(3)
S+400(24)
4.70
2/2022
7/2028
46,398
47,326
Centinel Spine, LLC(16)
S+530
4.35
9.65
2/2025
22,460
22,518
23,096
OmniGuide Holdings, Inc. (13)
S+580(11)
5.31
7/2018
30,109
33,023
26,195
SPR Therapeutics, Inc.
Health Care Technology
S+515
9.15
10,949
11,015
11,387
Treace Medical Concepts, Inc.
S+505
3.00
8.71
1/2031
22,317
Vapotherm, Inc.(23)
4.50
9/2027
13,782
14,446
14,368
Total First Lien Life Science Senior Secured Loans
185,852
181,623
Second Lien Asset-Based Senior Secured Loans
AMF Levered II, LLC
S+705
10.84
29,925
29,798
FGI Worldwide LLC (16)
4/2023
8,206
8,107
nFusion Capital Finance, LLC
10.92
7/2025
35,000
34,650
WALCO Funding, LLC
S+785
11.52
27,654
27,251
Total Second Lien Asset-Backed Senior Secured Loans
99,806
100,785
Total Senior Secured Loans
1,243,565
1,239,329
8
Equipment Financing — 11.3%
A&A Crane and Rigging, LLC (10)
7.78%
35
Boart Longyear Company (10)
Metals & Mining
8.31%
5/2020
10/2026
130
Bowman Energy Solutions, LLC (10)
7.42%
16
CKD Holdings, Inc. (10)
Ground Transportation
8.10%
9/2022
651
Double S Industrial Contractors, Inc. (10)
8.60%
7/2023
48
Environmental Protection & Improvement Company, LLC (10)
8.25%
9/2020
2,746
2,752
First American Commercial Bancorp, Inc. (10)
7.50-9.00%
10/2021
10/2026-3/2027
592
No Limit Construction Services, LLC (10)
7.73%
64
RH Land Construction, LLC & Harbor Dredging LA, Inc. (10)
Construction & Engineering
8.08%
SLR Equipment Finance (2)(9)(17)
8.50%
3,500
Smiley Lifting Solutions, LLC(10)
7.82-8.61%
9/2026-6/2030
4,168
The Smedley Company & Smedley Services, Inc. (10)
4.07%
7/2017
1/2028
559
531
Trinity Equipment, Inc. (10)
8.78-8.93%
5/2028
725
U.S. Crane & Rigging, LLC (10)
8.73%
12/2022
538
Worldwide Flight Services, Inc. (10)
8.32-9.93%
9/2027-8/2028
1,647
1,662
Zamborelli Enterprises Pacific Southern Foundation (10)
8.91%
169
Shares/Units
SLR Equipment Finance Equity Interests (2)(9)(17)*
200
145,000
96,000
Total Equipment Financing
160,618
111,569
Preferred Equity – 3.4%
SOINT, LLC (2)(3)(4)
0.00%
6/2012
4,600
959
Veronica Holdings, LLC (Vapotherm)(23)
9.00%(11)
9/2024
13,055,991
31,800
32,617
Total Preferred Equity
36,400
33,576
Common Equity/Equity Interests/Warrants—73.5%
Assertio Holdings, Inc. (8)*
834
51
Bayside Parent, LLC (23)*
6,526
11,411
12,497
CardioFocus, Inc. Warrants *
3/2017
90
Centrexion Therapeutics, Inc. Warrants *
6/2019
289,102
136
21
Conventus Orthopaedics, Inc. Warrants *
6/2016
157,500
65
Essence Group Holdings Corporation (Lumeris) Warrants *
260,000
129
KBH Topco LLC (Kingsbridge) (2)(5)(18)
11/2020
84,000,000
156,485
186,467
Meditrina, Inc. Warrants *
44,049
33
29
OmniGuide Holdings, Inc. Warrants*
2,625,000
11
12
RD Holdco, Inc. (Rug Doctor) (2)*
12/2013
335,150
15,683
RD Holdco, Inc. (Rug Doctor) Class B (2)*
872
5,216
RD Holdco, Inc. (Rug Doctor) Class C (2)*
350,120
10,272
13,408
Senseonics Holdings, Inc. (3)(8)*
7/2019
23,467
235
156
Shoes for Crews Holdings, LLC
1,884
2,759
2,040
SLR-AMI Topco Blocker, LLC (15)(23)*
Broadline Retail
6/2023
25,740
12,006
SLR Business Credit (2)(3)(19)
100
111,583
135,000
SLR Credit Solutions (2)(3)(20)
12/2012
280,303
280,737
281,000
32,839
34,335
37,500
SLR Senior Lending Program LLC (2)(3)(22)
Asset Management & Custody Banks
47,875
47,939
Venus Concept Ltd. Warrants* (f/k/a Restoration Robotics)
5/2018
37
110
Veronica Holdings, LLC (Vapotherm)(23)*
293,203
330
639
Total Common Equity/Equity Interests/Warrants
703,247
728,730
Total Investments (6) — 213.3%
2,143,830
2,113,204
Par Amount
Fair Value
Cash Equivalents —39.3%
U.S. Treasury Bill (3.67% yield)
Government
3/2026
390,000
Total Investments & Cash Equivalents — 252.6%
2,532,774
2,502,148
Liabilities in Excess of Other Assets — (152.6%)
(1,511,398
Net Assets — 100.0%
10
Name of Issuer
Fair Value atDecember 31,2025
GrossAdditions
GrossReductions
RealizedLoss
Change inUnrealizedGain(Loss)
Fair Value atMarch 31, 2026
Interest/Dividend/OtherIncome
Kingsbridge Holdings, LLC
(18
3,873
KBH Topco, LLC (Kingsbridge)
172,000
11,052
3,415
3,794
RD Holdco, Inc. (Rug Doctor, common equity)
RD Holdco, Inc. (Rug Doctor, class B)
RD Holdco, Inc. (Rug Doctor, class C)
SLR Business Credit (revolver)
SLR Business Credit
133,000
2,000
2,500
SLR Credit Solutions
4,000
SLR Equipment Finance (equity)
95,000
1,000
SLR Equipment Finance (debt)
8,500
SLR Healthcare ABL
1,378
SLR Healthcare ABL (revolver)
5,700
SLR Senior Lending Program LLC
48,256
(317
1,464
SOINT, LLC
20,252
14,200
18,102
The change in fair value in the table above may not roll across due to the recognition of accretion income, which is included in interest income.
RealizedGain(Loss)
Interest/ DividendIncome
Bayside Opco, LLC
19,725
372
45
549
Bayside Parent, LLC (loan)
6,933
239
240
Bayside Parent, LLC (equity)
SLR-AMI Topco Blocker, LLC
135
(135
Vapotherm, Inc.
(60
Veronica Holdings, LLC (preferred equity)
31,899
718
(126
Veronica Holdings, LLC (common equity)
2,055
* Non-income producing security.
13
Industry Classification
Percentage of TotalInvestments (at fair value) asof March 31, 2026
Financial Services (includes SLR Credit Solutions, SLR Business Credit and SLR Healthcare ABL)
30.5
Multi-Sector Holdings (includes Kingsbridge Holdings, LLC and SLR Equipment Finance)
20.3
9.1
5.4
4.4
4.3
4.2
4.0
2.3
2.0
1.6
1.5
1.4
1.3
1.2
0.8
0.6
0.5
Fertilizers & Agricultural Chemicals
0.3
0.2
0.1
0.0
Total Investments
100.0
14
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2025
Senior Secured Loans — 126.5%
2,249
17,384
17,141
10.43
2,213
2,206
8,068
Bayside Opco, LLC(24)
11.07
Bayside Parent, LLC(24)
13.82
7,054
16,293
16,065
8.97
28,756
28,475
10.88
30,833
30,356
1,197
18,630
18,424
2,965
10.72
54,143
9.32
2,223
2,172
10.38
20,649
9.12
26,280
25,890
10.12
20,265
9.59
26,040
25,831
23,226
Insight Investments Holdings, LLC
9.99
44,572
142,349
11.41
10,459
10.74
30,277
44,000
18,690
8.42
9,462
9,368
5,456
979
24,434
23,984
9.04
8,298
8,215
S+675(23)
10.68
24,421
24,157
21,979
9.05
5,663
5,593
S+650(26)
10.33
3,426
1,849
19,885
Southern Orthodontic Partners Management, LLC(16)
32,822
32,659
10,335
13,494
13,327
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
7.79
7,188
7,122
9.44
14,675
14,497
7.74
1,888
S+700(27)
6,076
5,995
5,164
The Children's Place, Inc.
26,884
8.72
14,038
13,781
3,801
3,751
3,725
19,862
14,426
14,151
8.04
5,191
36,219
35,851
7.86
10,011
21,680
976,236
978,829
9.79
35,073
36,800
S+400(25)
47,177
47,178
22,454
23,035
S+580
28,665
31,169
27,232
10,984
11,359
8.78
22,266
22,258
Vapotherm, Inc.(24)
14,386
183,509
182,230
10.98
29,786
10.22
8,097
11.13
34,617
11.57
26,199
25,791
98,291
99,330
1,258,036
1,260,389
Equipment Financing — 11.9%
39
Air Methods Corporation (10)
Passenger Airlines
7.08-7.13%
11/2021
11/2026
1,997
2,005
8.31-9.06%
1/2026-10/2026
221
28
8.10-8.60%
3/2026-9/2027
815
55
2,972
795
Rotten Rock Hardscaping & Tree Service (10)
8.21%
4,382
632
600
800
586
1,819
1,836
217
169,085
119,021
Preferred Equity – 3.3%
Veronica Holdings, LLC (Vapotherm)(24)
30,956
35,556
32,858
17
Common Equity/Equity Interests/Warrants—71.6%
Bayside Parent, LLC (24)*
22
78,750,000
145,434
327,180
845
SLR-AMI Topco Blocker, LLC (15)(24)*
25,606
Veronica Holdings, LLC (Vapotherm)(24)*
692,062
712,544
2,154,739
2,124,812
Cash Equivalents —35.0%
U.S. Treasury Bill (3.61% yield)
350,000
Total Investments & Cash Equivalents — 248.3%
2,503,324
2,473,397
Liabilities in Excess of Other Assets — (148.3%)
(1,477,404
18
Fair Value atDecember 31,2024
Fair Value atDecember 31, 2025
Equipment Operating Leases, LLC
2,812
2,884
104
100,500
42,000
(66
11,936
152,071
4,514
15,415
19,022
Loyer Capital LLC
7,361
7,500
139
405
3,136
RD Holdco, Inc. (debt)
7,827
12,297
4,470
15,500
125,370
7,630
14,875
288,250
(7,250
20,900
107,600
(12,600
3,000
19,100
13,600
357
37,850
(350
7,369
98,700
100,900
205
49,091
(835
5,594
641
(900
888,232
190,086
153,322
8,861
80,776
19
20
19,905
180
2,350
6,008
925
7,179
5,318
12,778
1,521
(2,293
14,254
1,741
29,182
2,717
(470
3,187
89,945
5,163
2,429
8,203
Percentage of TotalInvestments (at fair value) asof December 31, 2025
30.2
19.7
9.4
4.9
4.5
3.9
2.1
1.1
Biotechnology
Automobile Components
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Note 1. Organization
SLR Investment Corp. (the “Company,” “SLRC,” “we,” “us” or “our”), a Maryland corporation formed in November 2007, is an externally managed, non-diversified closed-end management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended (the “1940 Act”). Furthermore, as the Company is an investment company, it continues to apply the guidance in the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 946. In addition, for U.S. federal income tax purposes, the Company has elected to be treated, and intends to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).
On February 9, 2010, the Company priced its initial public offering, selling 5.68 million shares of common stock, including the underwriters’ over-allotment, at a price of $18.50 per share. Concurrent with this offering, the Company’s senior management purchased an additional 600,000 shares through a private placement, also at $18.50 per share.
The Company’s investment objective is to maximize both current income and capital appreciation through debt and equity investments. The Company directly and indirectly invests primarily in leveraged middle market companies in the form of senior secured loans, financing leases and, to a lesser extent, unsecured loans and equity securities. From time to time, we may also invest in public companies that are thinly traded.
On April 1, 2022, we acquired SLR Senior Investment Corp., a Maryland corporation (“SUNS”). As a result of the acquisition, we issued an aggregate of 12,511,825 shares of our common stock to former SUNS stockholders.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)
Note 2. Significant Accounting Policies
The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”), and include the accounts of the Company and certain wholly-owned subsidiaries. The consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of the operations and financial condition for the periods presented. All significant intercompany balances and transactions have been eliminated. Certain prior period amounts may have been reclassified to conform to the current period presentation.
Interim consolidated financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, they may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending on December 31, 2026.
In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of consolidated financial statements, have been included.
The significant accounting policies consistently followed by the Company are:
With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value under GAAP, the Board has approved a multi-step valuation process each quarter, as described below:
24
The valuation principles set forth above may be modified from time to time, in whole or in part, as determined by the Board in its sole discretion. The Board will also (1) periodically assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services, as applicable; (5) oversee the reporting required by Rule 2a-5 under the 1940 Act; and (6) maintain recordkeeping requirements under Rule 2a-5.
Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. However, in accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation approaches to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process. For the three months ended March 31, 2026, there has been no change to the Company’s valuation approaches or techniques and the nature of the related inputs considered in the valuation process.
ASC Topic 820 classifies the inputs used to measure these fair values into the following hierarchy:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities, accessible by the Company at the measurement date.
Level 2: Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.
Level 3: Unobservable inputs for the asset or liability.
In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The exercise of judgment is based in part on our knowledge of the asset class and our prior experience.
25
Recent Accounting Pronouncements
The Company considers the applicability and impact of all accounting standard updates (“ASU”) recently issued by the FASB. ASUs not listed were assessed by the Company and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements.
26
Note 3. Agreements
The Company has an investment advisory and management agreement (the “Advisory Agreement”) with the Investment Adviser, under which the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company. For providing these services, the Investment Adviser receives a fee from the Company, consisting of two components—a base management fee and a performance-based incentive fee. On April 1, 2022, in connection with the consummation of the SUNS acquisition, we entered into a letter agreement (the “Letter Agreement”) pursuant to which the Investment Adviser voluntarily agreed to a permanent 25 basis point reduction of the annual base management fee rate payable by us to the Investment Adviser pursuant to the Advisory Agreement. Following the Letter Agreement, the base management fee is now determined by taking the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters calculated at an annual rate of 1.50% on gross assets up to 200% of the Company’s total net assets as of the immediately preceding quarter end and 1.00% on gross assets that exceed 200% of the Company’s total net assets as of the immediately preceding quarter end. For purposes of computing the base management fee, gross assets exclude temporary assets acquired at the end of each fiscal quarter for purposes of preserving investment flexibility in the next fiscal quarter. Temporary assets include, but are not limited to, U.S. Treasury bills, other short-term U.S. government or government agency securities, repurchase agreements or cash borrowings.
The performance-based incentive fee has two parts, as follows: one part is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement (as defined below), and any interest expense and distributions paid on any issued and outstanding preferred stock, but excluding the performance-based incentive fee). Pre-incentive fee net investment income does not include any realized capital gains or losses, or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7% annualized). The Company pays the Investment Adviser a performance-based incentive fee with respect to the Company’s pre-incentive fee net investment income in each calendar quarter as follows: (1) no performance-based incentive fee in any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the hurdle rate; (2) 100% of the Company’s pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.1875% in any calendar quarter; and (3) 20% of the amount of the Company’s pre-incentive fee net investment income, if any, that exceeds 2.1875% in any calendar quarter. These calculations are appropriately pro-rated for any period of less than three months.
The second part of the performance-based incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Advisory Agreement, as of the termination date), and equals 20% of the Company’s cumulative realized capital gains less cumulative realized capital losses, unrealized capital depreciation (unrealized depreciation on a gross investment-by-investment basis at the end of each calendar year) and all net capital gains upon which prior performance-based capital gains incentive fee payments were previously made to the Investment Adviser. For financial statement purposes, the second part of the performance-based incentive fee is accrued based upon 20% of cumulative net realized gains and net unrealized capital appreciation. No accrual was required for the three months ended March 31, 2026 and 2025.
For the three months ended March 31, 2026 and 2025, the Company recognized $7,784 and $7,513, respectively, in base management fees and $4,459 and $5,526, respectively, in performance-based incentive fees. For the three months ended March 31, 2026 and 2025, $14 and $2, respectively, of such performance-based incentive fees were waived. The Investment Adviser has agreed to waive incentive fees resulting from income earned due to the accretion of purchase discounts allocated to investments acquired as a result of the SUNS acquisition. Fees waived pursuant to the above are not subject to recoupment by the Investment Adviser.
The Company has also entered into an administration agreement (the “Administration Agreement”) with SLR Capital Management, LLC (the “Administrator”) under which the Administrator provides administrative services to the Company. For providing these services, facilities and personnel, the Company reimburses the Administrator for the Company’s allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement,
including rent. The Administrator will also provide, on the Company’s behalf, managerial assistance to those portfolio companies to which the Company is required to provide such assistance. The Company typically reimburses the Administrator on a quarterly basis.
For the three months ended March 31, 2026 and 2025, the Company recognized expenses under the Administration Agreement of $1,446 and $1,361, respectively. No managerial assistance fees were accrued or collected for the three months ended March 31, 2026 and 2025.
Note 4. Net Asset Value Per Share
At March 31, 2026, the Company’s total net assets and net asset value per share were $990,750 and $18.16, respectively. This compares to total net assets and net asset value per share at December 31, 2025 of $995,993 and $18.26, respectively.
Note 5. Earnings Per Share
The following table sets forth the computation of basic and diluted net increase in net assets per share resulting from operations, pursuant to ASC 260-10, for the three and three months ended March 31, 2026 and 2025:
Three months ended March 31,
2026
2025
Earnings per share (basic & diluted)
Numerator - net increase in net assets resulting from operations:
Denominator - weighted average shares:
54,554,634
Earnings per share:
Note 6. Fair Value
Fair value is defined as 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. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuations used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:
Level 1. Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access.
Level 2. Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
Level 3. Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s and, if applicable, an independent third-party valuation firm’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3).
Gains and losses for assets and liabilities categorized within the Level 3 tables below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).
A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Such reclassifications involving Level 3 assets and liabilities are reported as transfers in/out of Level 3 as of the end of the quarter in which the reclassifications occur. Within the fair value hierarchy tables below, cash and cash equivalents are excluded but would be classified as Level 1.
The following tables present the balances of assets measured at fair value on a recurring basis, as of March 31, 2026 and December 31, 2025:
Fair Value Measurements
As of March 31, 2026
Level 1
Level 2
Level 3
Measured atNet Asset Value*
Total
Assets:
Senior Secured Loans
Equipment Financing
Preferred Equity
Common Equity/Equity Interests/Warrants
172
680,619
2,065,093
* In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities. The portfolio investment in this category is SSLP (as defined below). See Note 17 for more information on this investment, including its investment strategy and the Company’s unfunded equity commitment to SSLP. This investment is not redeemable by the Company absent an election by the members of the entity to liquidate all investments and distribute the proceeds to the members.
While the Company has not made an election to apply the fair value option of accounting to any of its current debt obligations, if the Company’s debt obligations were carried at fair value at March 31, 2026, the fair value of the Credit Facility, SPV Credit Facility, 2026 Unsecured Notes, 2027 Unsecured Notes, 2027 Series F Unsecured Notes, 2027 Series G Unsecured Notes, 2028 Series H Unsecured Notes, 2028 Series I Unsecured Notes and 2028 Series J Unsecured Notes (each as defined below) would be $496,393, $165,050, $74,063, $48,500, $132,300, $49,123, $50,000, $49,875 and $74,625, respectively. All debt obligations would be considered Level 3 liabilities and would be valued with market yield as the unobservable input.
As of December 31, 2025
138
664,150
2,076,418
* In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are
intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities. The portfolio investment in this category is SSLP (as defined below). See Note 17 for more information on this investment, including its investment strategy and the Company’s unfunded equity commitment to SSLP. This investment is not redeemable by the Company absent an election by the members of the entity to liquidate all investments and distribute the proceeds to the members.
While the Company has not made an election to apply the fair value option of accounting to any of its current debt obligations,if the Company’s debt obligations were carried at fair value at December 31, 2025, the fair value of the Credit Facility, SPV CreditFacility, 2026 Unsecured Notes, 2027 Unsecured Notes, 2027 Series F Unsecured Notes, 2027 Series G Unsecured Notes, 2028 SeriesH Unsecured Notes, 2028 Series I Unsecured Notes and 2028 Series J Unsecured Notes would be $505,386, $165,050, $73,875,$48,250, $131,625 $49,368, $50,250, $50,000 and $75,000, respectively and would be reflected in Level 3.
The following tables provide a summary of the changes in fair value of Level 3 assets for the three months ended March 31, 2026, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at March 31, 2026:
Fair Value Measurements Using Level 3 Inputs
SeniorSecuredLoans
EquipmentFinancing
CommonEquity/EquityInterests/Warrants
Fair value, December 31, 2025
Total gains or losses included in earnings:
(6,589
1,017
5,282
(416
Purchase of investment securities*
110,953
3,487
11,187
126,471
Proceeds from dispositions of investment securities
(125,410
(11,956
(137,366
Transfers in/out of Level 3
Fair value, March 31, 2026
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
* Includes PIK capitalization and accretion of discount.
30
The following table provides a summary of the changes in fair value of Level 3 assets for the three months ended March 31, 2025, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at March 31, 2025:
PreferredEquity
Fair value, December 31, 2024
1,117,118
181,016
31,682
626,470
1,956,286
Net realized gain (loss)
(8
(2,905
(6,493
(113
8,348
(1,163
188,200
2,734
5,084
196,788
(185,838
(10,450
(196,288
Fair value, March 31, 2025
1,116,605
166,799
32,339
639,902
1,955,645
(367
1,375
* Includes PIK capitalization and accretion of discount
Quantitative Information about Level 3 Fair Value Measurements
The Company typically determines the fair value of its performing debt investments utilizing a yield analysis. In a yield analysis, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to current contractual interest rates, relative maturities and other key terms and risks associated with an investment. Among other factors, a significant determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company.
Significant unobservable quantitative inputs typically used in the fair value measurement of the Company’s Level 3 assets and liabilities primarily reflect current market yields, including indices, and readily available quotes from brokers, dealers, and pricing services as indicated by comparable assets and liabilities, as well as enterprise values, returns on equity and earnings before income taxes, depreciation and amortization (“EBITDA”) multiples of similar companies, and comparable market transactions for equity securities.
31
Quantitative information about the Company’s Level 3 asset and liability fair value measurements as of March 31, 2026 is summarized in the table below:
Asset orLiability
Principal ValuationTechnique/Methodology
UnobservableInput
Range (WeightedAverage)
Asset
1,213,134
Income Approach
Market Yield
7.8% – 29.9% (11.1%)
Market Multiple
Revenue Multiple
2.5x – 2.5x (2.5x)
15,569
8.3% – 8.5% (8.3%)
Market Multiple(1)
Comparable Multiple
1.1x – 1.3x (1.1x)
9.0% – 9.0% (9.0%)
Recovery Analysis
Recoverable Amount
N/A
508,119
Market Multiple(2)
1.3x – 13.3x (4.7x)
172,500
Market Approach
Return on Equity
3.6% – 28.5% (20.3%)
Quantitative information about the Company’s Level 3 asset and liability fair value measurements as of December 31, 2025 is summarized in the table below:
Unobservable Input
Range (Weighted Average)
8.2% – 26.9% (11.1%)
24,021
8.0% –8.5% (8.2%)
1.1x-1.3x (1.2x)
9.0% –9.0% (9.0%)
493,650
1.3x –13.3x (4.1x)
170,500
2.6% –26.9% (20.3%)
Significant increases or decreases in any of the above unobservable inputs in isolation, including unobservable inputs used in deriving bid-ask spreads, if applicable, could result in significantly lower or higher fair value measurements for such assets and liabilities. Generally, an increase in market yields or decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Company’s investments. Weighted averages in the above tables are calculated based on fair value of the underlying assets.
32
Note 7. Debt
Our debt obligations consisted of the following as of March 31, 2026 and December 31, 2025:
Facility
Face Amount
Carrying Value
Credit Facility
496,393
490,868
(1)
505,386
499,287
SPV Credit Facility
165,050
164,132
(2)
163,975
2026 Unsecured Notes
74,904
(3)
74,870
2027 Unsecured Notes
50,000
49,995
(4)
49,991
2027 Series F Unsecured Notes
134,995
(5)
134,993
2027 Series G Unsecured Notes
49,000
48,935
(6)
48,925
2028 Series H Unsecured Notes
49,950
(7)
49,944
2028 Series I Unsecured Notes
49,939
(8)
49,933
2028 Series J Unsecured Notes
74,489
(9)
74,436
1,145,443
1,154,436
(7) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $50 and $56 as of March 31, 2026 and
December 31, 2025, respectively.
(8) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $61 and $67 as of March 31, 2026 and
(9) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $511 and $564 as of March 31, 2026 and
Unsecured Notes
On August 21, 2025, the Company closed a private offering of $75,000 of unsecured notes due 2028 (the “2028 Series J Unsecured Notes”) with a fixed interest rate of 5.95% and a maturity date of August 21, 2028. Interest on the 2028 Series J Unsecured Notes is due semi-annually on February 21 and August 21. The 2028 Series J Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On July 30, 2025, the Company closed a private offering of $50,000 of unsecured notes due 2028 (the “2028 Series I Unsecured Notes”) with a fixed interest rate of 5.96% and a maturity date of July 30, 2028. Interest on the 2028 Series I Unsecured Notes is due semi-annually on January 30 and July 30. The 2028 Series I Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On February 18, 2025, the Company closed a private offering of $50,000 of unsecured notes with a fixed interest rate of 6.14% and a maturity date of February 18, 2028 (the “2028 Series H Unsecured Notes”). Interest on the 2028 Series H Unsecured Notes is due semi-annually on February 18 and August 18. The 2028 Series H Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On December 16, 2024, the Company closed a private offering of $49,000 of unsecured notes with a fixed interest rate of 6.24% and a maturity date of December 16, 2027 (the “2027 Series G Unsecured Notes”). Interest on the 2027 Series G Unsecured Notes is due semi-annually on June 16 and December 16. The 2027 Series G Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On January 6, 2022, the Company closed a private offering of $135,000 of unsecured notes with a fixed interest rate of 3.33% and a maturity date of January 6, 2027 (the “2027 Series F Unsecured Notes”). Interest on the 2027 Series F Unsecured Notes is due semi-annually on January 6 and July 6. The 2027 Series F Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On September 14, 2021, the Company closed a private offering of $50,000 of unsecured notes with a fixed interest rate of 2.95% and a maturity date of March 14, 2027 (the “2027 Unsecured Notes”). Interest on the 2027 Unsecured Notes is due semi-annually on March 14 and September 14. The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On December 18, 2019, the Company closed a private offering of $75,000 of unsecured notes with a fixed interest rate of 4.375% and a maturity date of December 15, 2026 (the “2026 Unsecured Notes”). Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15. The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers.
Revolving and Term Loan Facilities
On August 16, 2024, the Company closed on Amendment No. 3 to its August 28, 2019 senior secured credit agreement (the“Credit Facility”). Following the amendment and several commitment between the fourth quarter of 2024 and the third quarter of 2025and a commitment decrease in the fourth quarter of 2025 related to a lender who did not extend their commitment with AmendmentNo. 3, the Credit Facility is now composed of $695,000 of revolving credit and $153,138 of term loans. Borrowings generally bearinterest at a rate per annum equal to the base rate plus a range of 1.75%-2.00% or the alternate base rate plus 0.75%-1.00%. The CreditFacility has a 0% floor, matures in August 2029 and includes ratable amortization in the final year. Subsequent to Amendment No. 4on December 3, 2024, the Credit Facility may be increased up to $900,000 with additional new lenders or an increase in commitmentsfrom current lenders. The Credit Facility contains certain customary affirmative and negative covenants and events of default. Inaddition, the Credit Facility contains certain financial covenants that, among other things, require the Company to maintain aminimum stockholder’s equity and a minimum asset coverage ratio. At March 31, 2026, outstanding USD equivalent borrowingsunder the Credit Facility totaled $496,393, composed of $346,539 of revolving credit and $149,854 of term loans.
On April 1, 2022, the Company entered into an assumption agreement (the “CF Assumption Agreement”), effective as of theclosing of the SUNS acquisition. The CF Assumption Agreement relates to the Company’s assumption of the Revolving Credit Facility, originally entered into on August 26, 2011 (as amended from time to time, the “SPV Credit Facility”), by and among SUNS SPV LLC (the “SUNS SPV”), a wholly-owned subsidiary of SUNS, acting as borrower, Citibank, N.A., acting as administrative agent and collateral agent, and the other parties thereto. Currently, subsequent to an August 30, 2024 amendment, the commitment under theSPV Credit Facility is $275,000. The stated interest rate on the SPV Credit Facility is SOFR plus 2.25%-2.75% with no SOFR floorrequirement and the current final maturity date is August 30, 2028. The SPV Credit Facility is secured by all of the assets held bySUNS SPV. Under the terms of the SPV Credit Facility and related transaction documents, the Company as successor to SUNS, andSUNS SPV, as applicable, have made certain customary representations and warranties and are required to comply with variouscovenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. TheSPV Credit Facility also includes usual and customary events of default for credit facilities of this nature. At March 31, 2026,outstanding USD equivalent borrowings under the SPV Credit Facility totaled $165,050.
Certain covenants on our issued debt may restrict our business activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code.
The average annualized interest cost for all borrowings for the three months ended March 31, 2026 and the year ended December 31, 2025 was 5.44% and 5.67%, respectively. These costs are exclusive of other credit facility expenses such as unused fees, agency fees and other prepaid expenses related to establishing and/or amending the Credit Facility, the SPV Credit Facility, the 2026 Unsecured Notes, the 2027 Unsecured Notes, the 2027 Series F Unsecured Notes, the 2027 Series G Unsecured Notes, the 2028
34
Series H Unsecured Notes, the 2028 Series I Unsecured Notes and the 2028 Series J Unsecured Notes (collectively the “Debt Instruments”), if any. The maximum amounts borrowed on the Debt Instruments during the three months ended March 31, 2026 and the year ended December 31, 2025 were $1,154,436 and $1,223,260, respectively.
Note 8. Financial Highlights
The following is a schedule of financial highlights for the three months ended March 31, 2026 and 2025:
Three months endedMarch 31, 2026
Three months endedMarch 31, 2025
Per Share Data: (a)
Net asset value, beginning of year
18.20
0.33
0.41
Net realized and unrealized gain (loss)
(0.02
(0.04
From distributable earnings
(0.33
(0.41
(0.08
Net asset value, end of period
Per share market value, end of period
14.31
16.86
Total Return (b)(c)
0.79
6.82
Net assets, end of period
Shares outstanding, end of period
Ratios to average net assets (c):
1.79
2.23
Operating expenses
1.51%*
1.53%*
Interest and other credit facility expenses
1.65
1.60
3.16%*
3.13%*
Average debt outstanding
1,117,287
1,010,398
Portfolio turnover ratio
5.6
9.7
* The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets is shown net of the performance-based incentive fee waiver (see note 3). For the three months ended March 31, 2026 and 2025, the ratios of operating expenses to average net assets would be 1.51% and 1.53%, respectively, without the performance-based incentive fee waiver. For the three months ended March 31, 2026 and 2025, the ratios of total expenses to average net assets would be 3.16% and 3.13%, respectively, without the performance-based incentive fee waiver.
36
Note 9. Commitments and Contingencies
Off-Balance Sheet Arrangements
The Company has unfunded debt and equity commitments to various revolving and delayed-draw term loans as well as to SLR Credit and SLR Healthcare (each as defined below). The total amount of these unfunded commitments as of March 31, 2026 and December 31, 2025 was $406,507 and $394,096, respectively, comprised of the following:
March 31,2026
SLR Credit Solutions*
44,263
Ardelyx, Inc.
29,272
26,626
26,376
24,332
20,196
16,774
SLR Business Credit*
SLR Healthcare ABL*
18,700
18,502
16,000
SLR Equipment Finance*
14,500
9,500
12,997
10,946
Refocus Management Services, LLC
12,053
11,416
11,399
10,115
Stella & Chewy's, LLC
10,962
9,248
10,534
10,803
10,402
9,777
Western Veterinary Partners LLC
9,177
21,179
7,623
7,497
6,275
7,250
Arcutis Biotherapeutics, Inc.
6,329
12,658
WMD Funding LLC
5,893
6,191
5,628
5,651
The Townsend Company, LLC
5,402
5,755
5,381
6,062
5,280
Alkeme Intermediary Holdings, LLC
5,000
4,827
3,544
4,456
7,665
iCIMS, Inc.
3,823
2,945
3,561
3,659
3,162
5,100
Plastic Management, LLC
3,128
2,944
2,418
2,314
SLR Senior Lending Program LLC*
2,125
United Digestive MSO Parent, LLC
1,927
1,721
2,093
SunMed Group Holdings, LLC
1,621
OmniGuide Holdings, Inc.
Tilley Distribution, Inc.
1,007
EyeSouth Eye Care Holdco LLC
1,279
CC SAG Holdings Corp. (Spectrum Automotive)
548
TAUC Management, LLC
294
284
All States Ag Parts, LLC
2
102
2,911
Total Commitments
406,507
394,096
* The Company controls the funding of these commitments and may cancel them at its discretion.
The credit agreements governing the above loan commitments contain customary lending provisions and/or are subject to the portfolio company’s achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the financial condition or business outlook for the company. Since these commitments may expire without being drawn upon, unfunded commitments do not
necessarily represent future cash requirements or future earning assets for the Company. As of March 31, 2026 and December 31, 2025, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment.
From time to time, the Company may become a party to certain legal proceedings incidental to the normal course of its business. As of March 31, 2026 and December 31, 2025, management is not aware of any material pending or threatened litigation that would require accounting recognition or financial statement disclosure.
Note 10. Capital Share Transactions
As of March 31, 2026 and March 31, 2025, 200,000,000 shares of $0.01 par value capital stock were authorized.
On February 28, 2025, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) by and among the Company, the Investment Adviser and the Administrator, on the one hand, and Raymond James & Associates, Inc., Citizens JMP Securities, LLC and Jefferies LLC, as placement agents thereunder (collectively, the “Agents”), on the other hand. Under the Equity Distribution Agreement, the Company may, but has no obligation to, issue and sell up to $150,000 in aggregate amount of shares of its common stock from time to time through the Agents, or to them, as principal for their own account.
For the three months ended March 31, 2026 and March 31, 2025, the Company sold no shares of common stock under the Equity Distribution Agreement. As of March 31, 2026, shares representing $150,000 of the Company’s common stock remain available for issuance and sale under the Equity Distribution Agreement.
Transactions in capital stock were as follows for the periods presented:
Shares
Amount
Three monthsended March 31, 2026
Three months ended March 31, 2025
Share activity
Note 11. SLR Credit Solutions
On December 28, 2012, we acquired an equity interest in Crystal Capital Financial Holdings LLC (“Crystal Financial”) for $275,000 in cash. Crystal Financial owned approximately 98% of the outstanding ownership interest in SLR Credit Solutions, f/k/a Crystal Financial LLC (“SLR Credit”). The remaining financial interest was held by various employees of SLR Credit, through their investment in Crystal Management LP. SLR Credit had a diversified portfolio of 23 loans having a total par value of approximately $400,000 at November 30, 2012 and a $275,000 committed revolving credit facility. On July 28, 2016, the Company purchased Crystal Management LP’s approximately 2% equity interest in SLR Credit for approximately $5,737. Upon the closing of this transaction, the Company holds 100% of the equity interest in SLR Credit. On September 30, 2016, Crystal Capital Financial Holdings LLC was dissolved. As of March 31, 2026, total commitments to the revolving credit facility were $300,000.
As of March 31, 2026, SLR Credit had 33 funded commitments to 26 different issuers with total funded loans of approximately $397,368 on total assets of $412,279. As of December 31, 2025, SLR Credit had 33 funded commitments to 26 different issuers with total funded loans of approximately $404,097 on total assets of $420,735. As of March 31, 2026 and December 31, 2025, the largest loan outstanding totaled $32,474 and $29,916, respectively. For the same periods, the average exposure per issuer was $15,283 and $15,542, respectively. SLR Credit’s credit facility, which is non-recourse to the Company, had approximately $212,677 and $215,830 of borrowings outstanding at March 31, 2026 and December 31, 2025, respectively. For the three months ended March 31, 2026 and 2025, SLR Credit had net income of $2,927 and $5,200, respectively, on gross income of $10,013 and $10,056, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Credit will be able to maintain consistent dividend payments to us.
38
Note 12. SLR Equipment Finance
On July 31, 2017, we acquired a 100% equity interest in NEF Holdings, LLC, which conducts its business through its wholly-owned subsidiary Nations Equipment Finance, LLC. Effective February 25, 2021, Nations Equipment Finance, LLC and its related companies are doing business as SLR Equipment Finance (“SLR Equipment”). SLR Equipment is an independent equipment finance company that provides senior secured loans and leases primarily to U.S.-based companies. We invested $209,866 in cash to effect the transaction, of which $145,000 was invested in the equity of SLR Equipment through our wholly-owned consolidated taxable subsidiary NEFCORP LLC and our wholly-owned consolidated subsidiary NEFPASS LLC and $64,866 was used to purchase certain leases and loans held by SLR Equipment through NEFPASS LLC. On January 31, 2024, SLR Equipment entered into a $225,000 senior secured credit facility with a maturity date of January 31, 2027. On March 1, 2024, the credit facility was expanded to $350,000 of commitments. On November 26, 2025, SLR Equipment renewed the credit facility extending the maturity date to November 26, 2028.
As of March 31, 2026, SLR Equipment had 465 funded equipment-backed leases and loans to 236 different customers with a total net investment in leases and loans of approximately $290,857 on total assets of $333,993. As of December 31, 2025, SLR Equipment had 485 funded equipment-backed leases and loans to 243 different customers with a total net investment in leases and loans of approximately $299,753 on total assets of $338,285. As of March 31, 2026 and December 31, 2025, the largest position outstanding totaled $16,413 and $17,768, respectively. For the same periods, the average exposure per customer was $1,232 and $1,234, respectively. SLR Equipment’s credit facility, which is non-recourse to the Company, had approximately $232,298 and $237,500 of borrowings outstanding at March 31, 2026 and December 31, 2025, respectively. For the three months ended March 31, 2026 and 2025, SLR Equipment had net income (loss) of $3,713 and ($1,917), respectively, on gross income of $10,129 and $6,655, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Equipment’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Equipment will be able to maintain consistent dividend payments to us.
Note 13. Kingsbridge Holdings, LLC
On November 3, 2020, the Company acquired 87.5% of the equity securities of Kingsbridge Holdings, LLC (“KBH”) through KBH Topco LLC (“KBHT”), a Delaware corporation. KBH is a residual-focused independent mid-ticket lessor of equipment primarily to U.S. investment grade companies. The Company invested $216,596 to effect the transaction, of which $136,596 was invested to acquire 87.5% of KBHT’s equity and $80,000 of KBH’s debt. The existing management team of KBH committed to continuing to lead KBH after the transaction. Following the transaction, the Company owned 87.5% of KBHT’s equity and the KBH management team owned the remaining 12.5% of KBHT’s equity. On March 13, 2024, as per the terms of the original purchase agreement, the Company acquired 3.125% of KBHT’s equity from the KBH management team. On March 11, 2025, as per the terms of the original purchase agreement, the Company acquired an additional 3.125% of KBHT’s equity from the KBH management team. On March 16, 2026, as per the terms of the original purchase agreement, the Company acquired an additional 6.25% of KBHT’s equity from the KBH management team. Effective with these purchases, the Company owns 100% of KBHT’s equity.
As of March 31, 2026 and December 31, 2025, KBHT had total assets of $956,433 and $940,258, respectively. For the same periods, debt recourse to KBHT totaled $319,993 and $309,367, respectively, and non-recourse debt totaled $405,964 and $407,803, respectively. None of the debt is recourse to the Company. For the three months ended March 31, 2026 and 2025, KBHT had net income of $1,443 and $3,364, respectively, on gross income of $70,793 and $97,942, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in KBHT’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us.
Note 14. SLR Healthcare ABL
SUNS acquired an equity interest in SLR Healthcare ABL, f/k/a Gemino Healthcare Finance, LLC (“SLR Healthcare”), on September 30, 2013. SLR Healthcare is a commercial finance company that originates, underwrites, and manages primarily secured, asset-based loans for small and mid-sized companies operating in the healthcare industry. SUNS’s initial investment in SLR Healthcare ABL was $32,839. The management team of SLR Healthcare co-invested in the transaction and continues to lead SLR Healthcare. As of March 31, 2026, SLR Healthcare’s management team and the Company owned approximately 8% and 92% of the
equity in SLR Healthcare, respectively. SLRC acquired SLR Healthcare in connection with the SUNS acquisition on April 1, 2022. Effective upon an amendment dated March 27, 2026, SLR Healthcare has a $160,000 non-recourse credit facility, which is expandable to $300,000 under its accordion facility. The maturity date of this facility is March 27, 2031.
SLR Healthcare currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of March 31, 2026, the portfolio totaled approximately $253,250 of commitments with a total net investment in loans of $111,147 on total assets of $119,600. As of December 31, 2025, the portfolio totaled approximately $297,750 of commitments with a total net investment in loans of $157,025 on total assets of $165,380. At March 31, 2026, the portfolio consisted of 48 issuers with an average balance of approximately $2,316 versus 48 issuers with an average balance of approximately $3,271 at December 31, 2025. All of the commitments in SLR Healthcare’s portfolio are floating-rate, senior-secured, cash-pay loans. SLR Healthcare’s credit facility, which is non-recourse to us, had approximately $83,900 and $127,200 of borrowings outstanding at March 31, 2026 and December 31, 2025, respectively. For the three months ended March 31, 2026 and 2025, SLR Healthcare had net income of $1,808 and $1,431, respectively, on gross income of $5,557 and $5,304, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Healthcare’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Healthcare will be able to maintain consistent dividend payments to us.
Note 15. SLR Business Credit
SUNS acquired 100% of the equity interests of North Mill Capital LLC (“NMC”) on October 20, 2017. NMC is a leading asset-backed lending commercial finance company that provides senior secured asset-backed financings to U.S. based small-to-medium-sized businesses primarily in the manufacturing, services and distribution industries. SUNS invested approximately $51,000 to effect the transaction. Subsequently, SUNS contributed 1% of its equity interest in NMC to ESP SSC Corporation. Immediately thereafter, SUNS and ESP SSC Corporation contributed their equity interests to NorthMill LLC (“North Mill”). On May 1, 2018, North Mill merged with and into NMC, with NMC being the surviving company. SUNS and ESP SSC Corporation then owned 99% and 1% of the equity interests of NMC, respectively. The management team of NMC continues to lead NMC. On June 28, 2019, North Mill Holdco LLC (“NM Holdco”), a newly formed entity and ESP SSC Corporation acquired 100% of Summit Financial Resources, a Salt Lake City-based provider of asset-backed financing to small and medium-sized businesses. As part of this transaction, SUNS’s 99% interest in the equity of NMC was contributed to NM Holdco. This approximately $15,500 transaction was financed with borrowings on NMC’s credit facility. Effective February 25, 2021, NMC and its related companies are doing business as SLR Business Credit. On June 3, 2021, NMC acquired 100% of Fast Pay Partners LLC, a Los Angeles-based provider of asset-backed financing to digital media companies. The transaction purchase price of $66,671 was financed with equity from SUNS of $19,000 and borrowings on NMC’s credit facility of $47,671. SLRC acquired SLR Business Credit in connection with the SUNS acquisition on April 1, 2022. On September 27, 2024, NMC acquired an asset-based factoring portfolio and operations from Webster Bank, N.A.’s Commercial Services Division. The transaction purchase price of approximately $127,000 was funded with $30,000 of equity from the Company and the remaining $97,000 from borrowings on NMC’s credit facility.
SLR Business Credit currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of March 31, 2026, the portfolio totaled approximately $909,142 of commitments, of which, on a net basis, approximately $524,140 were funded, on total assets of $568,632. As of December 31, 2025, the portfolio totaled approximately $920,443 of commitments, of which $535,201 were funded, on total assets of $574,114. At March 31, 2026, the portfolio consisted of 178 issuers with an average balance of approximately $2,945 versus 179 issuers with an average balance of approximately $2,990 at December 31, 2025. NMC has a senior credit facility with a bank lending group for $367,000 which expires on November 13, 2028. Borrowings are secured by substantially all of NMC’s assets. NMC’s credit facility, which is non-recourse to us, had approximately $254,218 and $273,161 of borrowings outstanding at March 31, 2026 and December 31, 2025, respectively. For the three months ended March 31, 2026 and 2025, SLR Business Credit had net income of $1,940 and $2,551 respectively, on gross income of $12,041 and $12,928, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Business Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Business Credit will be able to maintain consistent dividend payments to us.
40
Note 16. Stock Repurchase Program
On May 7, 2025, our Board authorized an extension of a program for the purpose of repurchasing up to $50,000 of our outstanding shares of common stock. Under the repurchase program, we may, but are not obligated to, repurchase shares of our outstanding common stock in the open market from time to time provided that we comply with our code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market volume and timing constraints. In addition, any repurchases will be conducted in accordance with the 1940 Act. Unless further amended or extended by our Board, we expect the repurchase program to be in place until the earlier of May 7, 2026 or until $50,000 of our outstanding shares of common stock have been repurchased. The timing and number of additional shares to be repurchased will depend on a number of factors, including market conditions. There are no assurances that we will engage in any repurchases beyond what is reported herein. There were no share repurchases during the three months ended March 31, 2026 or for the fiscal year ended December 31, 2025.
41
Note 17. SLR Senior Lending Program LLC
On October 12, 2022, the Company entered into an amended and restated limited liability company agreement with Sunstone Senior Credit L.P. (the “Investor”) to create a joint venture vehicle, SLR Senior Lending Program LLC (“SSLP”). SSLP is expected to invest primarily in senior secured cash flow loans. The Company and the Investor each have made initial equity commitments of $50,000, resulting in a total equity commitment of $100,000. Investment decisions and all material decisions in respect of SSLP must be approved by representatives of the Company and the Investor.
On December 1, 2022, SSLP commenced operations. On December 12, 2022, SSLP, as servicer, and SLR Senior LendingProgram SPV LLC (“SSLP SPV”), a newly formed wholly owned subsidiary of SSLP, as borrower, entered into a senior securedrevolving credit facility with Goldman Sachs Bank USA acting as administrative agent. On October 8, 2025, this facility was refinanced with Citizens Bank, N.A. into a $150,000 facility scheduled to mature in October 2030 and generally bearing interest at arate of SOFR plus 2.15% (the “SSLP Facility”). SSLP and SSLP SPV, as applicable, have made certain customary representations and warranties and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SSLP Facility also includes usual and customary events of default for credit facilities of this nature. At March 31, 2026 and December 31, 2025, borrowings outstanding on the SSLP Facility totaled $96,500 and $94,500, respectively.
As of March 31, 2026 and December 31, 2025, the Company and the Investor had contributed combined equity capital in the amount of $95,750 and $95,750, respectively. As of March 31, 2026 and December 31, 2025, the Company and the Investor’s combined remaining commitments to SSLP totaled $4,250 and $4,250, respectively. The Company and the Investor control the funding of SSLP, and SSLP may not call the unfunded commitments of the Company or the Investor without the approval of both the Company and the Investor.
As of March 31, 2026 and December 31, 2025, SSLP had total assets of $194,907 and $192,810, respectively. For the same periods, SSLP’s portfolio consisted of floating rate senior secured loans to 25 and 25 different borrowers, respectively. For the three months ended March 31, 2026, SSLP invested $9,841 in 5 portfolio companies. Investments sold or prepaid totaled $3,434 for the three months ended March 31, 2026. For the three months ended March 31, 2025, SSLP invested $6,588 in 6 portfolio companies. Investments prepaid totaled $19,918 for the three months ended March 31, 2025.
42
SSLP Portfolio as of March 31, 2026
SpreadAboveIndex(1)
InterestRate(2)
FairValue(3)
Alkeme Intermediary Holdings, LLC (4)
9,075
8,994
All States Ag Parts, LLC (4)
2,073
BayMark Health Services, Inc. (4)
3,991
3,792
CC SAG Holdings Corp. (4)
9,896
Crewline Buyer, Inc.
IT Services
10.42
11/2030
4,985
CVAUSA Management, LLC (4)
9,898
9,714
Exactcare Parent, Inc.
9.17
11/2029
3,163
3,102
Eyesouth Eye Care Holdco LLC (4)
9,860
Fertility (ITC) Investment Holdco, LLC (4)
9,949
9,836
Foundation Consumer Brands, LLC
Personal Care Products
8.80
7,362
iCIMS, Inc.(4)
10,000
9,972
Maxor Acquisition, Inc.(4)
7,931
7,810
Medrina, LLC
9.63
2,751
2,702
NS and Associates LLC
8.90
8,056
7,944
ONS MSO, LLC
5,774
5,683
Pinnacle Fertility, Inc.(4)
13,398
Plastic Management, LLC(4)
5,507
5,437
RQM+ Corp.(4)
6,547
5,238
RxSense Holdings LLC
8,758
SunMed Group Holdings, LLC(4)
8,742
The Townsend Company, LLC(4)
12,863
12,571
Tilley Distribution, Inc.(4)
9.85
5,103
5,001
United Digestive MSO Parent, LLC(4)
4,995
4,901
UVP Management, LLC
9.35
3,288
3,251
Western Veterinary Partners LLC(4)
15,039
14,975
187,607
187,531
43
SSLP Portfolio as of December 31, 2025
8,164
8,071
2,076
9,922
10.59
4,981
9,924
9,727
9.39
3,171
3,106
9.47
9,923
9,883
5,835
5,727
9.09
7,777
9,970
7,951
7,822
9.69
2,758
2,706
9.01
8,076
7,958
10.09
5,789
5,689
13,432
5,522
5,439
6,152
5,537
8.84
8,782
8,765
12,020
11,723
5,548
5,007
4,907
3,245
13,337
13,282
180,681
181,369
Below is certain summarized financial information for SSLP as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and March 31, 2025:
Selected Balance Sheet Information for SSLP:
Investments at fair value (cost $187,607 and $180,681, respectively)
Cash and other assets
7,376
11,441
194,907
192,810
Debt outstanding ($96,500 and $94,500 face amounts, respectively, reported net of unamortized debt issuance costs of $1,748 and $1,843, respectively)
94,752
92,657
Distributions payable
2,585
1,885
Interest payable and other credit facility related expenses
1,435
1,488
Accrued expenses and other payables
258
99,030
96,298
Members’ equity
95,877
96,512
Total liabilities and members’ equity
44
Selected Income Statement Information for SSLP:
Interest income
4,412
4,469
Service fees*
115
1,531
2,242
52
1,698
2,714
2,051
Realized gain on investments
323
Net change in unrealized gain (loss) on investments
(763
(285
Net realized and unrealized gain (loss) on investments
Net income
1,951
2,089
* Service fees are included within the Company’s Consolidated Statements of Operations as other income.
Note 18. Segment Reporting
The Company operates as a single reporting segment and derives its revenue from providing comprehensive financing solutionsprimarily to middle market borrowers in the United States through direct cash flow lending or specialty finance instruments. TheCompany has identified its co-Chief Executive Officer as the Chief Operating Decision Makers (“CODMs”). The CODMs review allsignificant segment expenses on the Consolidated Statements of Operations and use net investment income to evaluate theperformance of the Company and to determine distributions. Additionally, the CODMs use net asset value per share (see Note 4) todetermine capital adequacy of the Company. All metrics are used to ultimately allocate resources to the Company as needed.
The accounting policies used to measure the revenue and expenses of the segment are the same as those described in Note 2.
Note 19. Subsequent Events
The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued.
On April 15, 2026, revolving credit commitments to the Credit Facility were increased by $25,000 with the addition of a new lender. Total revolving commitments now total $720,000.
On May 4, 2026, the Board approved a Fourth Amended and Restated Investment Advisory and Management Agreement pursuant to which the performance-based incentive fee payable by the Company to our Investment Adviser was permanently reduced from 20% to 17.5%, beginning with the second quarter of 2026.
On May 5, 2026, the Board authorized an extension of a program for the purpose of repurchasing up to $50,000 of theCompany’s outstanding shares of common stock. Under the repurchase program, the Company may, but is not obligated to,repurchase shares of the Company’s outstanding common stock in the open market from time to time provided that the Companycomplies with the Company’s code of ethics and the guidelines specified in Rule 10b-18 of the 1934 Act, including certain price,market volume and timing constraints. In addition, any repurchases will be conducted in accordance with the 1940 Act. Unless furtheramended or extended by the Board, the Company expects the repurchase program to be in place until the earlier of May 5, 2027 oruntil $50,000 of the Company’s outstanding shares of common stock have been repurchased. The timing and number of additionalshares to be repurchased will depend on a number of factors, including market conditions. There are no assurances that the Companywill engage in any repurchases.
On May 5, 2026, the Board declared a quarterly distribution of $0.31 per share payable on June 26, 2026 to holders of record as of June 12, 2026.
To the Stockholders and Board of Directors
SLR Investment Corp.:
Results of Review of Interim Financial Information
We have reviewed the consolidated statement of assets and liabilities of SLR Investment Corp. (and subsidiaries) (the Company), including the consolidated schedule of investments, as of March 31, 2026, the related consolidated statements of operations, changes in net assets and cash flows for the three-month periods ended March 31, 2026 and 2025, and the related notes (collectively, the consolidated interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of assets and liabilities, including the consolidated schedule of investments, of the Company as of December 31, 2025, and the related consolidated statements of operations, changes in net assets, and cash flows for the year then ended (not presented herein); and in our report dated February 24, 2026, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, as of December 31, 2025, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities, including the consolidated schedule of investments, from which it has been derived.
Basis for Review Results
This consolidated interim financial information is the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our reviews in accordance with the standards of the PCAOB. A review of consolidated interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ KPMG LLP
New York, New York
May 5, 2026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The information contained in this section should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.
Some of the statements in this report constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained herein involve risks and uncertainties, including statements as to:
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:
We generally use words such as “anticipates,” “believes,” “expects,” “intends” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason, including any factors set forth in “Risk Factors” and elsewhere in this report.
We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including any annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Overview
SLR Investment Corp. (the “Company,” “SLRC,” “we” or “our”), a Maryland corporation formed in November 2007, is an externally managed, non-diversified closed-end management 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”). Furthermore, as the Company is an investment company, it continues to apply the guidance in the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 946. In addition, for U.S federal income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).
We invest primarily in privately held U.S. middle-market companies, where we believe the supply of primary capital is limited and the investment opportunities are most attractive. Our investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in leveraged middle-market companies in the form of senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities. From time to time, we may also invest in public companies that are thinly traded. Our business is focused primarily on the direct origination of investments through portfolio companies or their financial sponsors. Our investments generally range between $5 million and $100 million each, although we expect that this investment size will vary proportionately with the size of our capital base and/or with strategic initiatives. Our investment activities are managed by the Investment Adviser and supervised by our board of directors (the “Board”), a majority of whom are non-interested, as such term is defined in the 1940 Act. SLR Capital Management, LLC (the “Administrator”) provides the administrative services necessary for us to operate.
In addition, we may invest a portion of our portfolio in other types of investments, which we refer to as opportunistic investments, which are not our primary focus but are intended to enhance our overall returns. These investments may include, but are not limited to, direct investments in public companies that are not thinly traded and securities of leveraged companies located in select countries outside of the United States.
Recent Developments
On April 15, 2026, revolving credit commitments to the Credit Facility were increased by $25 million with the addition of a new lender. Total revolving commitments now total $720 million.
On May 5, 2026, the Board authorized an extension of a program for the purpose of repurchasing up to $50 million of theCompany’s outstanding shares of common stock. Under the repurchase program, the Company may, but is not obligated to,repurchase shares of the Company’s outstanding common stock in the open market from time to time provided that the Companycomplies with the Company’s code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, asamended (the “1934 Act”), including certain price, market volume and timing constraints. In addition, any repurchases will beconducted in accordance with the 1940 Act. Unless further amended or extended by the Board, the Company expects the repurchaseprogram to be in place until the earlier of May 5, 2027 or until $50 million of the Company’s outstanding shares of common stock have been repurchased. The timing and number of additional shares to be repurchased will depend on a number of factors, includingmarket conditions. There are no assurances that the Company will engage in any repurchases.
Investments
Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle market companies, the level of merger and acquisition activity for such companies, the general economic environment and the competitive environment for the types of investments we make. As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” The definition of “eligible portfolio company” includes certain public companies that do not have any securities listed on a national securities exchange and companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million.
Revenue
We generate revenue primarily in the form of interest and dividend income from the securities we hold and capital gains, if any, on investment securities that we may sell. Our debt investments generally have a stated term of three to seven years and typically bear interest at a floating rate usually determined on the basis of a benchmark Secured Overnight Financing Rate (“SOFR”), commercial paper rate, or the prime rate. Interest on our debt investments is generally payable monthly or quarterly but may be bi-monthly or semi-annually. In addition, our investments may provide payment-in-kind (“PIK”) income. Such amounts of accrued PIK income are added to the cost of the investment on the respective capitalization dates and generally become due at maturity of the investment or upon the investment being called by the issuer. We may also generate revenue in the form of commitment, origination, structuring fees, fees for providing managerial assistance and, if applicable, consulting fees, etc.
Expenses
All investment professionals of the Investment Adviser and their respective staffs, when and to the extent engaged in providing investment advisory and management services, and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by the Investment Adviser. We bear all other costs and expenses of our operations and transactions, including (without limitation):
49
We expect our general and administrative operating expenses related to our ongoing operations to increase moderately in dollar terms. During periods of asset growth, we generally expect our general and administrative operating expenses to decline as a percentage of our total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities, among others, may also increase or reduce overall operating expenses based on portfolio performance, interest rate benchmarks and offerings of our securities relative to comparative periods, among other factors.
Portfolio and Investment Activity
During the three months ended March 31, 2026, we invested approximately $118.7 million across 33 portfolio companies. This compares to investing approximately $193.5 million in 30 portfolio companies during the three months ended March 31, 2025. Investments sold, prepaid or repaid during the three months ended March 31, 2026 totaled approximately $137.5 million versus approximately $196.9 million for the three months ended March 31, 2025.
At March 31, 2026, our portfolio consisted of 99 portfolio companies and was invested 22.5% in cash flow senior secured loans, 46.5% in asset-based senior secured loans / SLR Credit Solutions (“SLR Credit”) / SLR Healthcare ABL / SLR Business Credit, 20.8% in equipment senior secured financings / SLR Equipment Finance (“SLR Equipment”) / Kingsbridge Holdings, LLC (“KBH”) and 10.2% in life science investments, in each case, measured at fair value, versus 118 portfolio companies invested 28.6% in cash flow senior secured loans, 38.9% in asset-based senior secured loans / SLR Credit / SLR Healthcare ABL / SLR Business Credit, 21.6% in equipment senior secured financings / SLR Equipment / KBH, and 10.9% in life science investments, in each case, measured at fair value, at March 31, 2025.
At March 31, 2026, 83.1%, or $1.72 billion, of our income producing investment portfolio* was floating rate and 16.9%, or $349.9 million, was fixed rate, measured at fair value. At March 31, 2025, 81.5%, or $1.61 billion, of our income producing investment portfolio* was floating rate and 18.5%, or $364.4 million, was fixed rate, measured at fair value. As of March 31, 2026 and 2025, we had zero and one issuer, respectively, on non-accrual status.
* We have included SLR Credit Solutions, SLR Equipment Finance, SLR Healthcare ABL, SLR Business Credit and Kingsbridge Holdings, LLC within our income producing investment portfolio.
50
On December 28, 2012, we acquired an equity interest in Crystal Capital Financial Holdings LLC (“Crystal Financial”) for $275 million in cash. Crystal Financial owned approximately 98% of the outstanding ownership interest in SLR Credit Solutions, f/k/a Crystal Financial LLC. The remaining financial interest was held by various employees of SLR Credit, through their investment in Crystal Management LP. SLR Credit had a diversified portfolio of 23 loans having a total par value of approximately $400 million at November 30, 2012 and a $275 million committed revolving credit facility. On July 28, 2016, the Company purchased Crystal Management LP’s approximately 2% equity interest in SLR Credit for approximately $5.7 million. Upon the closing of this transaction, the Company holds 100% of the equity interest in SLR Credit. On September 30, 2016, Crystal Capital Financial Holdings LLC was dissolved. As of March 31, 2026, total commitments to the revolving credit facility were $300 million.
As of March 31, 2026, SLR Credit had 33 funded commitments to 26 different issuers with total funded loans of approximately $397.4 million on total assets of $412.3 million. As of December 31, 2025, SLR Credit had 33 funded commitments to 26 different issuers with total funded loans of approximately $404.1 million on total assets of $420.7 million. As of March 31, 2026 and December 31, 2025, the largest loan outstanding totaled $32.5 million and $29.9 million, respectively. For the same periods, the average exposure per issuer was $15.3 million and $15.5 million, respectively. SLR Credit’s credit facility, which is non-recourse to the Company, had approximately $212.7 million and $215.8 million of borrowings outstanding at March 31, 2026 and December 31, 2025, respectively. For the three months ended March 31, 2026 and 2025, SLR Credit had net income of $2.9 million and $5.2 million, respectively, on gross income of $10.0 million and $10.1 million, respectively. Due to timing and non-cash items, there may be material differences between U.S. generally accepted accounting principles (“GAAP”) net income and cash available for distributions. As such, and subject to fluctuations in SLR Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Credit will be able to maintain consistent dividend payments to us.
SLR Equipment Finance
On July 31, 2017, we acquired a 100% equity interest in NEF Holdings, LLC, which conducts its business through its wholly-owned subsidiary Nations Equipment Finance, LLC. Effective February 25, 2021, Nations Equipment Finance, LLC and its related companies are doing business as SLR Equipment Finance. SLR Equipment is an independent equipment finance company that provides senior secured loans and leases primarily to U.S. based companies. We invested $209.9 million in cash to effect the transaction, of which $145.0 million was invested in the equity of SLR Equipment through our wholly-owned consolidated taxable subsidiary NEFCORP LLC and our wholly-owned consolidated subsidiary NEFPASS LLC and $64.9 million was used to purchase certain leases and loans held by SLR Equipment through NEFPASS LLC. On January 31, 2024, SLR Equipment entered into a $225 million senior secured credit facility with a maturity date of January 31, 2027. On March 1, 2024, the credit facility was expanded to $350 million of commitments. On November 26, 2025, SLR Equipment renewed the credit facility extending the maturitydate to November 26, 2028.
As of March 31, 2026, SLR Equipment had 465 funded equipment-backed leases and loans to 236 different customers with a total net investment in leases and loans of approximately $290.9 million on total assets of $334.0 million. As of December 31, 2025, SLR Equipment had 485 funded equipment-backed leases and loans to 243 different customers with a total net investment in leases and loans of approximately $299.8 million on total assets of $338.3 million. As of March 31, 2026 and December 31, 2025, the largest position outstanding totaled $16.4 million and $17.8 million, respectively. For the same periods, the average exposure per customer was $1.2 million and $1.2 million, respectively. SLR Equipment’s credit facility, which is non-recourse to the Company, had approximately $232.3 million and $237.5 million of borrowings outstanding at March 31, 2026 and December 31, 2025, respectively. For the three months ended March 31, 2026 and 2025, SLR Equipment had net income (loss) of $3.7 million and ($1.9) million, respectively, on gross income of $10.1 million and $6.7 million, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Equipment’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Equipment will be able to maintain consistent dividend payments to us.
On November 3, 2020, the Company acquired 87.5% of the equity securities of Kingsbridge Holdings, LLC through KBH Topco LLC (“KBHT”), a Delaware corporation. KBH is a residual focused independent mid-ticket lessor of equipment primarily to U.S. investment grade companies. The Company invested $216.6 million to effect the transaction, of which $136.6 million was invested to acquire 87.5% of KBHT’s equity and $80.0 million of KBH’s debt. The existing management team of KBH committed to continuing to lead KBH after the transaction. Following the transaction, the Company owns 87.5% of KBHT’s equity and the KBH management team owns the remaining 12.5% of KBHT’s equity. On March 13, 2024, as per the terms of the original purchase agreement, the Company acquired 3.125% of KBHT’s equity from the KBH management team. On March 11, 2025, as per the terms of the original purchase agreement, the Company acquired an additional 3.125% of KBHT’s equity from the KBH management team.
On March 16, 2026, as per the terms of the original purchase agreement, the Company acquired an additional 6.25% of KBHT’s equity from the KBH management team. Effective with these purchases, the Company owns 100% of KBHT’s equity.
As of March 31, 2026 and December 31, 2025, KBHT had total assets of $956.4 million and $940.3 million, respectively. For the same periods, debt recourse to KBHT totaled $320.0 million and $309.4 million, respectively, and non-recourse debt totaled $406.0 million and $407.8 million, respectively. None of the debt is recourse to the Company. For the three months ended March 31, 2026 and 2025, KBHT had net income of $1.4 million and $3.4 million, respectively, on gross income of $70.8 million and $97.9 million, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in KBHT’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us.
SLR Senior Investment Corp. (“SUNS”) acquired an equity interest in SLR Healthcare ABL, f/k/a Gemino Healthcare Finance, LLC (“SLR Healthcare”) on September 30, 2013. SLR Healthcare is a commercial finance company that originates, underwrites, and manages primarily secured, asset-based loans for small and mid-sized companies operating in the healthcare industry. SUNS’s initial investment in SLR Healthcare ABL was approximately $32.8 million. The management team of SLR Healthcare co-invested in the transaction and continues to lead SLR Healthcare. As of March 31, 2026, SLR Healthcare’s management team and the Company owned approximately 8% and 92% of the equity in SLR Healthcare, respectively. SLRC acquired SLR Healthcare in connection with the SUNS acquisition on April 1, 2022. Effective with an amendment dated March 27, 2026, SLR Healthcare has a $160 million non-recourse credit facility, which is expandable to $300 million under its accordion facility. The maturity date of this facility is March 27, 2031.
SLR Healthcare currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of March 31, 2026, the portfolio totaled approximately $253.3 million of commitments with a total net investment in loans of $111.1 million on total assets of $119.6 million. As of December 31, 2025, the portfolio totaled approximately $297.8 million of commitments with a total net investment in loans of $157.0 million on total assets of $165.4 million. At March 31, 2026, the portfolio consisted of 48 issuers with an average balance of approximately $2.3 million versus 48 issuers with an average balance of approximately $3.3 million at December 31, 2025. All of the commitments in SLR Healthcare’s portfolio are floating-rate, senior-secured, cash-pay loans. SLR Healthcare’s credit facility, which is non-recourse to us, had approximately $83.9 million and $127.2 million of borrowings outstanding at March 31, 2026 and December 31, 2025, respectively. For the three months ended March 31, 2026 and 2025, SLR Healthcare had net income of $1.8 million and $1.4 million, respectively, on gross income of $5.6 million and $5.3 million, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Healthcare’s funded commitments, the timing of originations, and the repayment of financings, the Company cannot guarantee that SLR Healthcare will be able to maintain consistent dividend payments to us.
SUNS acquired 100% of the equity interests of North Mill Capital LLC (“NMC”) on October 20, 2017. NMC is a leading asset-backed lending commercial finance company that provides senior secured asset-backed financings to U.S. based small-to-medium-sized businesses primarily in the manufacturing, services and distribution industries. SUNS invested approximately $51.0 million to effect the transaction. Subsequently, SUNS contributed 1% of its equity interest in NMC to ESP SSC Corporation. Immediately thereafter, SUNS and ESP SSC Corporation contributed their equity interests to NorthMill LLC (“North Mill”). On May 1, 2018, North Mill merged with and into NMC, with NMC being the surviving company. SUNS and ESP SSC Corporation then owned 99% and 1% of the equity interests of NMC, respectively. The management team of NMC continues to lead NMC. On June 28, 2019, North Mill Holdco LLC (“NM Holdco”), a newly formed entity and ESP SSC Corporation acquired 100% of Summit Financial Resources, a Salt Lake City-based provider of asset-backed financing to small and medium-sized businesses. As part of this transaction, SUNS’s 99% interest in the equity of NMC was contributed to NM Holdco. This approximately $15.5 million transaction was financed with borrowings on NMC’s credit facility. Effective February 25, 2021, NMC and its related companies are doing business as SLR Business Credit. On June 3, 2021, NMC acquired 100% of Fast Pay Partners LLC, a Los Angeles-based provider of asset-backed financing to digital media companies. The transaction purchase price of $66.7 million was financed with equity from SUNS of $19.0 million and borrowings on NMC’s credit facility of $47.7 million. SLRC acquired SLR Business Credit in connection with the SUNS acquisition on April 1, 2022. On September 27, 2024, NMC acquired an asset-based factoring portfolio and operations from Webster Bank, N.A.’s Commercial Services Division. The transaction purchase price of approximately $127 million was funded with $30 million of equity from the Company and the remaining $97 million from borrowings on NMC’s credit facility.
SLR Business Credit currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of March 31, 2026, the portfolio totaled approximately $909.1 million of commitments, of which, on a net basis,
approximately $524.1 million were funded, on total assets of $568.6 million. As of December 31, 2025, the portfolio totaled approximately $920.4 million of commitments, of which $535.2 million were funded, on total assets of $574.1 million. At March 31, 2026, the portfolio consisted of 178 issuers with an average balance of approximately $2.9 million versus 179 issuers with an average balance of approximately $3.0 million at December 31, 2025. NMC has a senior credit facility with a bank lending group for $367.0 million, which expires on November 13, 2028. Borrowings are secured by substantially all of NMC’s assets. NMC’s credit facility, which is non-recourse to us, had approximately $254.2 million and $273.2 million of borrowings outstanding at March 31, 2026 and December 31, 2025, respectively. For the three months ended March 31, 2026 and 2025, SLR Business Credit had net income of $1.9 million and $2.6 million, respectively, on gross income of $12.0 million and $12.9 million, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Business Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Business Credit will be able to maintain consistent dividend payments to us.
Stock Repurchase Program
On October 12, 2022, the Company entered into an amended and restated limited liability company agreement with Sunstone Senior Credit L.P. (the “Investor”) to create a joint venture vehicle, SLR Senior Lending Program LLC (“SSLP”). SSLP is expected to invest primarily in senior secured cash flow loans. The Company and the Investor each have made initial equity commitments of $50 million, resulting in a total equity commitment of $100 million. Investment decisions and all material decisions in respect of SSLP must be approved by representatives of the Company and the Investor.
On December 1, 2022, SSLP commenced operations. On December 12, 2022, SSLP, as servicer, and SLR Senior LendingProgram SPV LLC (“SSLP SPV”), a newly formed wholly owned subsidiary of SSLP, as borrower, entered into a senior securedrevolving credit facility with Goldman Sachs Bank USA acting as administrative agent. On October 8, 2025, this facility wasrefinanced with Citizens Bank, N.A. into a $150 million facility scheduled to mature in October 2030 and generally bearing interest ata rate of SOFR plus 2.15% (the “SSLP Facility”). SSLP and SSLP SPV, as applicable, have made certain customary representations and warranties and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SSLP Facility also includes usual and customary events of default for credit facilities of this nature. At March 31, 2026 and December 31, 2025, borrowings outstanding on the SSLP Facility totaled $96.5 million and $94.5 million, respectively.
As of March 31, 2026 and December 31, 2025, the Company and the Investor had contributed combined equity capital in the amount of $95.75 million and $95.75 million, respectively. As of March 31, 2026 and December 31, 2025, the Company and the Investor’s combined remaining commitments to SSLP totaled $4.25 million and $4.25 million, respectively. The Company, along with the Investor, controls the funding of SSLP, and SSLP may not call the unfunded commitments of the Company or the Investor without the approval of both the Company and the Investor.
As of March 31, 2026 and December 31, 2025, SSLP had total assets of $194.9 million and $192.8 million, respectively. For the same periods, SSLP’s portfolio consisted of floating rate senior secured loans to 25 and 25 different borrowers, respectively. For the three months ended March 31, 2026, SSLP invested $9.8 million in 5 portfolio companies. Investments sold or prepaid totaled $3.4 million for the three months ended March 31, 2026. For the three months ended March 31, 2025, SSLP invested $6.6 million in 6 portfolio companies. Investments prepaid totaled $19.9 million for the three months ended March 31, 2025.
53
SSLP Portfolio as of March 31, 2026 (dollar amounts in thousands)
54
SSLP Portfolio as of December 31, 2025 (dollar amounts in thousands)
Below is certain summarized financial information for SSLP as of March 31, 2026 and December 31, 2025 and for the three and three months ended March 31, 2026 and 2024:
Critical Accounting Policies
The preparation of consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies. Within the context of these critical accounting policies and disclosed subsequent events herein, we are not currently aware of any other reasonably likely events or circumstances that would result in materially different amounts being reported.
Valuation of Portfolio Investments
In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act addressing fair valuation of fund investments. The rule sets forth requirements for good faith determinations of fair value, as well as for the performance of fair value determinations, including related oversight and reporting obligations. The rule also defines “readily available market quotations” for purposes of the definition of “value” under the 1940 Act, and the SEC noted that this definition will apply in all contexts under the 1940 Act. The Company complies with the Rule 2a-5 valuation requirements.
We conduct the valuation of our assets, pursuant to which our net asset value is determined, at all times consistent with GAAP and the 1940 Act. The Board will (1) periodically assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services, as applicable; (5) oversee the reporting required by Rule 2a-5 under the 1940 Act; and (6) maintain recordkeeping requirements under Rule 2a-5.
It is anticipated that in respect of many of the Company’s assets, readily available market quotations will not be obtainable and that such assets will be valued at fair value. A market quotation is readily available for a security only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Company can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. If the Company anticipates using a market quotation for a security, it will also monitor for circumstances that may necessitate the use of fair value, such as significant events that may cause concern over the reliability of a market quotation.
Our valuation procedures are set forth in more detail in Note 2(b) to the Company’s consolidated financial statements. Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our consolidated financial statements.
Revenue Recognition
The Company records dividend income and interest, adjusted for amortization of premium and accretion of discount, on an accrual basis. Investments that are expected to pay regularly scheduled interest and/or dividends in cash are generally placed on non-accrual status when principal or interest/dividend cash payments are past due 30 days or more (90 days or more for equipment financing) and/or when it is no longer probable that principal or interest/dividend cash payments will be collected. Such non-accrual
56
investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining interest or dividend obligations. Interest or dividend cash payments received on investments may be recognized as income or applied to principal depending upon management’s judgment. Some of our investments may have contractual PIK income. PIK income computed at the contractual rate, as applicable, is accrued and reflected as a receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates, as the original securities issued. On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received). PIK generally becomes due at the maturity of the investment or upon the investment being called by the issuer. At the point the Company believes PIK is not expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends is reversed from the related receivable through interest or dividend income, respectively. The Company does not reverse previously capitalized PIK income. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if the Company again believes that PIK is expected to be realized. Loan origination fees, original issue discount, and market discounts are capitalized and amortized into income using the effective interest method. Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income. We record prepayment premiums on loans and other investments as interest income when we receive such amounts. Capital structuring fees are recorded as other income when earned.
The typically higher yields and interest rates on PIK securities, to the extent we invested, reflect the payment deferral and increased credit risks associated with such instruments and that such investments may represent a significantly higher credit risk than coupon loans. PIK securities may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral. PIK income has the effect of generating investment income and increasing the incentive fees payable at a compounding rate. In addition, the deferral of PIK income also increases the loan-to-value ratio at a compounding rate. PIK securities create the risk that incentive fees will be paid to the Investment Adviser based on non-cash accruals that ultimately may not be realized, but the Investment Adviser will be under no obligation to reimburse the Company for these fees. For the three months ended March 31, 2026 and 2025, capitalized PIK income totaled $5.6 million and $1.7 million, respectively.
Net Realized Gain or Loss and Net Change in Unrealized Gain or Loss
We generally measure realized gain or loss by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized origination or commitment fees and prepayment penalties. The net change in unrealized gain or loss reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized gain or loss, when gains or losses are realized. Gains or losses on investments are calculated by using the specific identification method.
Income Taxes
SLRC, a U.S. corporation, has elected to be treated, and intends to qualify annually, as a RIC under Subchapter M of the Code. In order to qualify for U.S. federal income taxation as a RIC, the Company is required, among other things, to timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each year. Depending on the level of taxable income earned in a given tax year, we may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a nondeductible 4% U.S. federal excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year distributions, the Company accrues an estimated excise tax, if any, on estimated excess taxable income.
The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board. ASUs not listed were assessed and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements.
57
RESULTS OF OPERATIONS
Results comparisons for the three months ended March 31, 2026 and March 31, 2025 are presented below:
Investment Income
For the three months ended March 31, 2026 and 2025, gross investment income totaled $49.3 million and $53.2 million, respectively. The decrease in gross investment income for the year over year three month periods was primarily due to a decrease in index rates.
Net expenses totaled $31.4 million and $31.1 million, respectively, for the three months ended March 31, 2026 and 2025, of which $12.2 million and $13.0 million, respectively, consisted of base management fees and performance-based incentive fees and $16.4 million and $15.8 million, respectively, consisted of interest and other credit facility expenses. Other general and administrative expenses totaled $2.8 million and $2.2 million, respectively, for the three months ended March 31, 2026 and 2025. Over the same periods, $14 thousand and $2 thousand of performance-based incentive fees were waived. Expenses generally consist of management and performance-based incentive fees, interest and other credit facility expenses, administrative services fees, insurance expenses, legal fees, directors’ fees, transfer agency fees, printing and proxy expenses, audit and tax services expenses and other general and administrative expenses. Interest and other credit facility expenses generally consist of interest, unused fees, agency fees and loan origination fees, if any, among others. The increase in expenses for the year over year three month periods was primarily due to higher interest expense from an increase in average borrowings.
Net Investment Income
The Company’s net investment income totaled $17.9 million and $22.1 million, or $0.33 and $0.41, per average share, respectively, for the three months ended March 31, 2026 and 2025.
Net Realized Loss
The Company had investment sales and prepayments totaling approximately $138 million and $197 million, respectively, for the three months ended March 31, 2026 and 2025. Net realized losses over the same periods were $27 thousand and $422 thousand, respectively. Net realized loss for the three months ended March 31, 2026 and 2025 were primarily due to the disposition of selected assets.
Net Change in Unrealized Gain (Loss)
For the three months ended March 31, 2026 and 2025, net change in unrealized gain (loss) on the Company’s assets totaled ($0.7) million and ($1.8) million, respectively. Net unrealized loss for the three months ended March 31, 2026 was primarily due to depreciation in the value of our investments in Omniguide Holdings, Inc. and RQM+ Corp., among others, partially offset by appreciation in the value of our investments in KBH Topco, LLC, SLR Business Credit and SLR Equipment Finance, among others. Net unrealized loss for the three months ended March 31, 2025 was primarily due to depreciation in the value of our investments in SLR Equipment Finance, SLR-AMI Topco Blocker, LLC and SLR Senior Lending Program LLC, among others, as well as the reversal of previously recognized unrealized appreciation upon the exit of our investments in Outset Medical, Inc. and Retina Midco, Inc., partially offset by appreciation in the value of our investments in KBH Topco, LLC, SLR Business Credit and Bayside Parent, LLC, among others
Net Increase in Net Assets from Operations
For the three months ended March 31, 2026 and 2025, the Company had a net increase in net assets resulting from operations of $17.1 million and $19.9 million, respectively. For the same periods, earnings per average share were $0.31 and $0.37, respectively.
58
LIQUIDITY AND CAPITAL RESOURCES
The Company’s liquidity and capital resources are generated and generally available through its Credit Facility and SPV Credit Facility (as defined below), the 2026 Unsecured Notes, the 2027 Unsecured Notes, the 2027 Series F Unsecured Notes, the 2027 Series G Unsecured Notes, the 2028 Series H Unsecured Notes, the 2028 Series I Unsecured Notes and the 2028 Series J Unsecured Notes (collectively the “Debt Instruments”), through cash flows from operations, investment sales, prepayments of senior and subordinated loans, income earned on investments and cash equivalents, and periodic follow-on equity and/or debt offerings. As of March 31, 2026, we had a total of $458.4 million of collective unused borrowing capacity under the Credit Facility and SPV Credit Facility, subject to borrowing base limits.
On February 28, 2025, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) by and among the Company, the Investment Adviser and the Administrator, on the one hand, and Raymond James & Associates, Inc., Citizens JMP Securities, LLC and Jefferies LLC, as placement agents thereunder (collectively, the “Agents”), on the other hand. Under the Equity Distribution Agreement, the Company may, but has no obligation to, issue and sell up to $150.0 million in aggregate amount of shares of its common stock from time to time through the Agents, or to them, as principal for their own account.
For the three months ended March 31, 2026 and 2025, the Company sold no shares of common stock under the Equity Distribution Agreement. As of March 31, 2026, shares representing $150.0 million of our common stock remain available for issuance and sale under the Equity Distribution Agreement.
We may from time to time issue other equity and/or debt securities in either public or private offerings. The issuance of such securities will depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance will occur or be successful. The primary uses of existing funds and any funds raised in the future are expected to be for investments in portfolio companies, repayment of indebtedness, cash distributions to our stockholders, or for other general corporate purposes.
Debt
On August 21, 2025, the Company closed a private offering of $75 million of unsecured notes due 2028 (the “2028 Series J Unsecured Notes”) with a fixed interest rate of 5.95% and a maturity date of August 21, 2028. Interest on the 2028 Series J Unsecured Notes is due semi-annually on February 21 and August 21. The 2028 Series J Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On July 30, 2025, the Company closed a private offering of $50 million of unsecured notes due 2028 (the “2028 Series I Unsecured Notes”) with a fixed interest rate of 5.96% and a maturity date of July 30, 2028. Interest on the 2028 Series I Unsecured Notes is due semi-annually on January 30 and July 30. The 2028 Series I Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On February 18, 2025, the Company closed a private offering of $50 million of unsecured notes with a fixed interest rate of 6.14% and a maturity date of February 18, 2028 (the “2028 Series H Unsecured Notes”). Interest on the 2028 Series H Unsecured Notes is due semi-annually on February 18 and August 18. The 2028 Series H Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On December 16, 2024, the Company closed a private offering of $49 million of unsecured notes with a fixed interest rate of 6.24% and a maturity date of December 16, 2027 (the “2027 Series G Unsecured Notes”). Interest on the 2027 Series G Unsecured Notes is due semi-annually on June 16 and December 16. The 2027 Series G Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On August 16, 2024, the Company closed on Amendment No. 3 to its August 28, 2019 senior secured credit agreement (as amended to date, the “Credit Facility”). Following this amendment and several commitment increases between the fourth quarter of 2024 and the third quarter of 2025 and a commitment decrease in the fourth quarter of 2025 related to a lender who did not extend their commitment with Amendment No. 3, the Credit Facility is now composed of $695.0 million of revolving credit and $153.1 million of term loans. Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of 1.75%-2.00% or the alternate base rate plus 0.75%-1.00%. The Credit Facility has a 0% floor, matures in August 2029 and includes ratable amortization in the final year. Subsequent to Amendment No. 4 on December 3, 2024, the Credit Facility may be increased up to $900 million with additional new lenders or an increase in commitments from current lenders. The Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Credit Facility contains certain financial covenants that, among other things, require the Company to maintain a minimum stockholder’s equity and a minimum asset coverage ratio. At March 31, 2026, outstanding USD equivalent borrowings under the Credit Facility totaled $496.4 million, composed of $346.5 million of revolving credit and $149.9 million of term loans.
59
On April 1, 2022, we entered into an assumption agreement (the “CF Assumption Agreement”), effective as of the closing of the SUNS acquisition. The CF Assumption Agreement relates to our assumption of the revolving credit facility, originally entered into on August 26, 2011 (as amended from time to time, the “SPV Credit Facility”), by and among SUNS SPV LLC (the “SUNS SPV”), a wholly-owned subsidiary of SUNS, acting as borrower, Citibank, N.A., acting as administrative agent and collateral agent, and the other parties thereto. Currently, subsequent to an August 30, 2024 amendment, the commitment under the SPV Credit Facility is $275 million. The stated interest rate on the SPV Credit Facility is SOFR plus 2.25%-2.75% with no SOFR floor requirement, and the current final maturity date is August 30, 2028. The SPV Credit Facility is secured by all of the assets held by SUNS SPV. Under the terms of the SPV Credit Facility and related transaction documents, we, as successor to SUNS, and SUNS SPV, as applicable, have made certain customary representations and warranties and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SPV Credit Facility also includes usual and customary events of default for credit facilities of this nature. At March 31, 2026, outstanding USD equivalent borrowings under the SPV Credit Facility totaled $165.1 million.
On January 6, 2022, the Company closed a private offering of $135 million of unsecured notes with a fixed interest rate of 3.33% and a maturity date of January 6, 2027 (the “2027 Series F Unsecured Notes”). Interest on the 2027 Series F Unsecured Notes is due semi-annually on January 6 and July 6. The 2027 Series F Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On September 14, 2021, the Company closed a private offering of $50 million of unsecured notes with a fixed interest rate of 2.95% and a maturity date of March 14, 2027 (the “2027 Unsecured Notes”). Interest on the 2027 Unsecured Notes is due semi-annually on March 14 and September 14. The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers.
On December 18, 2019, the Company closed a private offering of $75 million of unsecured notes with a fixed interest rate of 4.375% and a maturity date of December 15, 2026 (the “2026 Unsecured Notes”). Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15. The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers.
Certain covenants on our issued debt may restrict our business activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code. At March 31, 2026, the Company was in compliance with all financial and operational covenants required by the Debt Instruments.
Cash Equivalents
We deem certain U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities as cash equivalents. The Company makes purchases that are consistent with its purpose of making investments in securities described in paragraphs 1 through 3 of Section 55(a) of the 1940 Act. From time to time, including at or near the end of each fiscal quarter, we consider using various temporary investment strategies for our business. One strategy includes taking proactive steps by utilizing cash equivalents as temporary assets with the objective of enhancing our investment flexibility pursuant to Section 55 of the 1940 Act. More specifically, from time to time we may purchase U.S. Treasury bills or other high-quality, short-term debt securities at or near the end of the quarter and typically close out the position on a net cash basis subsequent to quarter end. We may also utilize repurchase agreements or other balance sheet transactions, including drawing down on the Credit Facility, as deemed appropriate. The amount of these transactions or such drawn cash for this purpose are excluded from total assets for purposes of computing the asset base upon which the management fee is determined. As of March 31, 2026 and December 31, 2025, we held face amounts of $390 million and $350 million, respectively, in cash equivalents.
Contractual Obligations
A summary of our significant contractual payment obligations is as follows as of March 31, 2026:
Payments Due by Period (in millions)
Less than1 Year
1-3 Years
3-5 Years
More Than5 Years
Revolving credit facilities (1)
511.5
165.0
346.5
Unsecured senior notes
484.0
260.0
224.0
Term loans
149.9
9.9
140.0
60
Under the provisions of the 1940 Act, we are permitted, as a BDC, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy the asset coverage test. If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our common stockholders. Furthermore, as a result of issuing senior securities, we would also be exposed to typical risks associated with leverage, including an increased risk of loss.
We have also entered into two contracts under which we have future commitments: an investment advisory and management agreement (the “Advisory Agreement”), pursuant to which the Investment Adviser has agreed to serve as our investment adviser, and an administration agreement (the “Administration Agreement”), pursuant to which the Administrator has agreed to furnish us with the facilities and administrative services necessary to conduct our day-to-day operations and provide on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance. Payments under the Advisory Agreement are equal to (1) a percentage of the value of our average gross assets and (2) a two-part incentive fee. Payments under the Administration Agreement are equal to an amount based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, including rent, technology systems, insurance and our allocable portion of the costs of our chief financial officer and chief compliance officer and their respective staffs. Either party may terminate each of the Advisory Agreement and Administration Agreement without penalty upon 60 days written notice to the other. See Note 3 to our Consolidated Financial Statements.
On July 31, 2017, the Company, NEFPASS LLC and NEFCORP LLC entered into a servicing agreement. NEFCORP LLC was engaged to provide NEFPASS LLC with administrative services related to the loans and capital leases held by NEFPASS LLC. NEFPASS LLC may terminate this agreement upon 30 days written notice to NEFCORP LLC.
On October 7, 2022, the Company committed $50 million to SSLP and entered into a servicing agreement. SSLP engaged and retained the Company to provide certain administrative services relating to the facilities, supplies and necessary ongoing overhead support services for the operation of SSLP’s ongoing business affairs in exchange for a fee.
Senior Securities
Information about our senior securities is shown in the following table (in thousands) as of the quarter ended March 31, 2026 and each year ended December 31 for the past ten years, unless otherwise noted. The “—” indicates information which the SEC expressly does not require to be disclosed for certain types of senior securities.
61
Class and Year
Total AmountOutstanding(1)
AssetCoveragePer Unit(2)
InvoluntaryLiquidatingPreferencePer Unit(3)
AverageMarket ValuePer Unit(4)
Fiscal 2026 (through March 31, 2026)
346,539
565
Fiscal 2025
352,248
568
Fiscal 2024
342,043
642
Fiscal 2023
407,000
631
Fiscal 2022
293,000
513
Fiscal 2021
222,500
552
Fiscal 2020
126,000
421
Fiscal 2019
42,900
182
Fiscal 2018
96,400
593
Fiscal 2017
245,600
1,225
Fiscal 2016
115,200
990
Fiscal 2015
207,900
1,459
269
266
310
206,250
320
155,200
272
2022 Unsecured Notes
150,000
501
638
923
748
430
2022 Tranche C Notes
21,000
89
2023 Unsecured Notes
131
186
250
319
461
374
2024 Unsecured Notes
125,000
194
219
309
417
2025 Unsecured Notes
85,000
159
132
149
62
63
122
121
116
81
94
77
88
124
220
218
253
209
80
79
92
2042 Unsecured Notes
100,000
859
1,002
Senior Secured Notes
645
Term Loans
149,854
244
153,138
247
140,000
263
155
175
248
308
NEFPASS Facility
30,000
128
185
SSLP Facility
53,785
331
Total Senior Securities
1,865
1,863
1,041,093
1,954
1,183,250
1,834
1,093,200
1,915
818,500
2,029
677,000
2,259
593,900
2,525
476,185
2,930
541,600
390,200
3,354
From time to time and in the normal course of business, the Company may make unfunded capital commitments to current or prospective portfolio companies. Typically, the Company may agree to provide delayed-draw term loans or, to a lesser extent, revolving loans or equity commitments. These unfunded capital commitments always take into account the Company’s liquidity and cash available for investment, portfolio and issuer diversification, and other considerations. Accordingly, the Company had the following unfunded capital commitments at March 31, 2026 and December 31, 2025, respectively:
(in millions)
44.3
29.3
26.6
26.4
24.3
20.2
16.8
20.0
18.7
18.5
16.0
14.5
9.5
13.0
10.9
12.1
11.4
10.1
11.0
9.2
10.5
10.8
10.4
9.8
21.1
7.6
7.5
6.3
7.3
12.7
5.9
6.2
5.7
5.8
6.1
5.3
5.0
4.8
3.5
7.7
3.8
2.9
3.6
3.7
3.2
5.1
3.1
2.4
1.9
1.7
1.0
406.5
394.1
66
The credit agreements governing the above loan commitments contain customary lending provisions and/or are subject to the respective portfolio company’s achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the financial condition or business outlook for the company. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company. As of March 31, 2026 and December 31, 2025, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment.
In the normal course of business, we invest or trade in various financial instruments and may enter into various investment activities with off-balance sheet risk, which may include forward foreign currency contracts. Generally, these financial instruments represent future commitments to purchase or sell other financial instruments at specific terms at future dates. These financial instruments contain varying degrees of off-balance sheet risk whereby changes in the market value or our satisfaction of the obligations may exceed the amount recognized in our Consolidated Statements of Assets and Liabilities.
Distributions
The following table reflects the cash distributions per share on our common stock for the two most recent fiscal years and the current fiscal year to date:
Date Declared
Record Date
Payment Date
Fiscal 2026
June 12, 2026
June 26, 2026
February 24, 2026
March 13, 2026
March 27, 2026
Total 2026
0.72
November 4, 2025
December 12, 2025
December 26, 2025
August 5, 2025
September 12, 2025
September 26, 2025
May 7, 2025
June 13, 2025
June 27, 2025
February 25, 2025
March 14, 2025
March 28, 2025
Total 2025
1.64
November 6, 2024
December 13, 2024
December 27, 2024
August 7, 2024
September 13, 2024
September 27, 2024
May 8, 2024
June 13, 2024
June 27, 2024
February 27, 2024
March 14, 2024
March 28, 2024
Total 2024
Tax characteristics of all distributions will be reported to stockholders on Form 1099 after the end of the calendar year. Future quarterly distributions, if any, will be determined by the Board. We expect that our distributions to stockholders will generally be from accumulated net investment income, net realized capital gains or non-taxable return of capital, if any, as applicable.
We have elected to be taxed as a RIC under Subchapter M of the Code. To maintain our RIC tax treatment, we must distribute at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. In addition, although we currently intend to distribute realized net capital gains (i.e., net long-term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment.
We maintain an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a distribution, then stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock, unless they specifically “opt out” of the dividend reinvestment plan so as to receive cash distributions.
We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, due to the asset coverage test applicable to us as a business development company, we may in the future be limited in our ability to make distributions. Also, the Credit Facility may limit our ability to declare distributions if we default under certain provisions. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of the tax benefits available to us as a RIC. In addition, in accordance with GAAP and tax regulations, we include in income certain amounts that we have not yet received in cash, such as contractual payment-in-kind
67
income, which represents contractual income added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC.
With respect to the distributions to stockholders, income from origination, structuring, closing and certain other upfront fees associated with investments in portfolio companies are treated as taxable income and, accordingly, distributed to stockholders.
Related Parties
We have entered into a number of business relationships with affiliated or related parties, including the following:
The Investment Adviser may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, with ours. For example, the Investment Adviser presently serves as investment adviser to SCP Private Credit Income BDC LLC, an unlisted BDC that focuses on investing primarily in senior secured loans, including non-traditional asset-based loans and first lien loans, SLR HC BDC LLC, an unlisted BDC whose principal focus is to invest directly and indirectly in senior secured loans and other debt instruments typically to middle market companies within the healthcare industry, and SLR Private Credit BDC II LLC, an unlisted BDC focused on first lien senior secured floating rate loans. In addition, Mr. Gross, our Chairman, Co-Chief Executive Officer and President, Mr. Spohler, our Co-Chief Executive Officer, Chief Operating Officer and board member, Mr. Kajee, our Chief Financial Officer and Treasurer, and Mr. Talarico, our Chief Compliance Officer and Secretary, serve in similar capacities for SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC. The Investment Adviser and certain investment advisory affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that we should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with the Investment Adviser’s allocation procedures. On June 13, 2017, the Investment Adviser received an exemptive order that permits the Company to participate in negotiated co-investment transactions with certain affiliates, in a manner consistent with the Company’s investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, and pursuant to various conditions (the “Exemptive Order”). If the Company is unable to rely on the Exemptive Order for a particular opportunity, such opportunity will be allocated first to the entity whose investment strategy is the most consistent with the opportunity being allocated, and second, if the terms of the opportunity are consistent with more than one entity’s investment strategy, on an alternating basis. Although the Investment Adviser’s investment professionals will endeavor to allocate investment opportunities in a fair and equitable manner, the Company and its stockholders could be adversely affected to the extent investment opportunities are allocated among us and other investment vehicles managed or sponsored by, or affiliated with, our executive officers, directors and members of the Investment Adviser.
Related party transactions may occur among us, SLR Senior Lending Program LLC, SLR Senior Lending Program SPV LLC, SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business Credit, SLR Healthcare ABL and SLR Equipment. These transactions may occur in the normal course of business. No administrative or other fees are paid to the Investment Adviser by SLR Senior Lending Program LLC, SLR Senior Lending Program SPV LLC, SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business Credit, SLR Healthcare ABL or SLR Equipment.
68
In addition, we have adopted a formal code of ethics that governs the conduct of our officers and directors. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are subject to financial market risks, including changes in interest rates. Uncertainty with respect to interest rates, inflationary pressures, risks in respect of a failure to increase the U.S. debt ceiling, a downgrade in the U.S. credit rating or a prolonged government shutdown, the war between Ukraine and Russia, the ongoing war in the Middle East and other geopolitical risk and the U.S. government’s recent enactments and proposals to enact substantial tariffs introduced significant volatility in the financial markets, and the effects of this volatility have materially impacted and could continue to materially impact our market risks. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In a low interest rate environment, including a reduction of SOFR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results. Conversely, in a rising interest rate environment, such difference could potentially increase thereby increasing our net investment income. During the three months ended March 31, 2026, certain investments in our comprehensive investment portfolio had floating interest rates. These floating rate investments were primarily based on floating SOFR and typically have durations of one to three months after which they reset to current market interest rates. Additionally, some of these investments have floors. The Company also has revolving credit facilities that are generally based on floating SOFR. Assuming no changes to our balance sheet as of March 31, 2026 and no new defaults by portfolio companies, a hypothetical one percent decrease in SOFR on our comprehensive floating rate assets and liabilities would decrease our net investment income by three cents per average share over the next twelve months. Assuming no changes to our balance sheet as of March 31, 2026 and no new defaults by portfolio companies, a hypothetical one percent increase in SOFR on our comprehensive floating rate assets and liabilities would increase our net investment income by approximately five cents per average share over the next twelve months. However, we may hedge against interest rate fluctuations from time to time by using standard hedging instruments such as futures, options, swaps and forward contracts 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 any benefits of certain changes in interest rates with respect to our portfolio of investments. At March 31, 2026, we had no interest rate hedging instruments outstanding on our balance sheet.
Increase (Decrease) in SOFR
(1.00
%)
Increase (Decrease) in Net Investment Income Per Share Per Year
(0.03
0.05
We may also have exposure to foreign currencies through various investments. These investments are converted into U.S. dollars at the balance sheet date, exposing us to movements in foreign exchange rates. In order to reduce our exposure to fluctuations in foreign exchange rates, we may borrow from time to time in such currencies under our multi-currency revolving credit facility or enter into forward currency or similar contracts.
Item 4. Controls and Procedures
(a) Evaluation of Disclosure Controls and Procedures
As of March 31, 2026 (the end of the period covered by this report), we, including our Co-Chief Executive Officers and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act). Based on that evaluation, our management, including our Co-Chief Executive Officers and Chief Financial Officer, concluded that, as of March 31, 2026, our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.
(b) Changes in Internal Control Over Financial Reporting
Management has not identified any change in the Company’s internal control over financial reporting that occurred during the first quarter of 2026 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
Item 1. Legal Proceedings
We and our consolidated subsidiaries are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us or our consolidated subsidiaries. From time to time, we and our consolidated subsidiaries 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.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Risk Factors” in the February 24, 2026 filing of our Annual Report on Form 10-K (the “Annual Report”) , which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report are not the only risks facing our Company. 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 during the period ended March 31, 2026 to the risk factors discussed in “Risk Factors” in the February 24, 2026 filing of our Annual Report on Form 10-K.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Rule 10b5-1 Trading Plans
During the fiscal quarter ended March 31, 2026, none of our directors or officers (as defined in Rule 16a-1(f) under the 1934 Act) adopted, modified or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the 1934 Act or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K.
Item 6. Exhibits
The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC:
Exhibit
Number
Articles of Amendment and Restatement(1)
Second Amended and Restated Bylaws(4)
4.1
Form of Common Stock Certificate(2)
Indenture, dated as of November 16, 2012, between the Registrant and U.S. Bank National Association as trustee(3)
Fourth Amended and Restated Investment Advisory and Management Agreement by and between the Registrant and SLR Capital Partners, LLC*
23.1
Awareness Letter of Independent Registered Public Accounting Firm*
31.1
Certification of Co-Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
31.2
31.3
Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
32.1
Certification of Co-Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.**
32.2
32.3
Certification of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.**
101.INS
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.*
101.SCH
Inline XBRL Taxonomy Extension Schema Document*
Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
* Filed herewith.
** Furnished herewith.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on May 5, 2026.
By:
/s/ MICHAEL S. GROSS
Michael S. Gross
Co-Chief Executive Officer
(Principal Executive Officer)
/s/ BRUCE J. SPOHLER
Bruce J. Spohler
/s/ SHIRAZ Y. KAJEE
Shiraz Y. Kajee
Chief Financial Officer
(Principal Financial and Accounting Officer)