FIDUS INVESTMENT Corp
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
FDUS$19.65+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000950170-25-105009
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001193125-25-269489
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 195 previous paragraphs and 210 current paragraphs.
133 unchanged; 55 reworded; 22 added; 6 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Below is a summary of the changes in total investment income for the nine months ended September 30, 2025 as compared to the same period in 2024 (dollars in millions):
Current report
Below is a summary of the changes in total expenses, including income tax provision, for the nine months ended September 30, 2025 as compared to the same period in 2024 (dollars in millions):
Current report
Net investment income decreased by $4.0 million, or (18.9%), to $17.4 million during the three months ended September 30, 2025 as compared to the same period in 2024, as a result of the $1.1 million decrease in total investment income, and the $2.9 million increase in total expenses, including the base management fee waiver and income tax provision.
Current report
an exit, as situations where the underlying operations of a portfolio company have been sold, but where we retain a residual ownership interest in the legacy entity (we generally distinguish these residual portfolio company investments from 'active' portfolio company investments).
Current report
Revolving Credit Facility
Current report
Subsequent to the fiscal quarter ended September 30, 2025, we terminated in full the Revolving Credit Agreement. See “Recent Developments” for more information.
Current report
Portfolio and Investment Activity
Current report
On October 1, 2025, we invested $16.0 million in first lien debt, $1.0 million in common equity, and committed up to an additional $0.3 million in common equity in Bobcat of Connecticut, LLC, a leading regional equipment dealer distributing new/used equipment and selling post-sale parts, service and rental solutions in the Northeast U.S.
Current report
On October 17, 2025, we invested $23.2 million in first lien debt in GPS Insight, Inc., a provider of fleet management and field service software.
Current report
On October 20, 2025, we exited our preferred and common equity investments in Aldinger Company. We received a distribution on our preferred and common equity investments for a realized gain of approximately $2.3 million.
Current report
Issuance of Additional March 2030 Notes
Current report
On October 3, 2025, we issued an additional $100.0 million in aggregate principal amount of the March 2030 Notes (the “New March 2030 Notes”). The New March 2030 Notes are treated as a single series with the March 2030 Notes under the governing indenture and have the same terms as the March 2030 Notes (except the issue date, the offering price and the initial interest payment date). The New March 2030 Notes have the same CUSIP number and are fungible and rank equally with the March 2030 Notes. Upon issuance of the New March 2030 Notes, the outstanding aggregate principal amount of the March 2030 Notes was $200.0 million.
Current report
On October 14, 2025, we issued an additional $3.5 million in SBA debentures, which will bear interest at a fixed interim interest rate of 4.74% until the pooling date in March 2026.
Current report
On October 21, 2025, we issued an additional $13.0 million in SBA debentures, which will bear interest at a fixed interim interest rate of 4.73% until the pooling date in March 2026.
Current report
SPV Credit Facility
Current report
On October 16, 2025, we entered into a credit and security agreement (the “SPV Credit Agreement”) relating to a special purpose vehicle credit facility (the “SPV Credit Facility”) by and among FIC Funding, LLC (the “SPV”), as borrower, us, as servicer and equityholder, ING as administrative agent (the “Administrative Agent”) and lead arranger, Western Alliance Trust Company, N.A., as custodian, collateral agent, and collateral administrator, and the lenders from time to time parties thereto. The SPV Credit Facility provides for $175 million of initial commitments, and has an accordion feature that allows for an increase of the total commitments to up to $250 million, subject to certain conditions (including the consent of the Administrative Agent). The SPV Credit Facility has a reinvestment period until October 16, 2029 and matures on October 16, 2030. The advances under the SPV Credit Facility bear interest, subject to our election, on a per annum basis equal to one-month Term SOFR plus 0.11448% and an applicable margin ranging from 2.500% to 2.675%. The SPV pays a commitment fee that varies depending on the size of the unused portion of the SPV Credit Facility: (1) if the utilized portion of the aggregate commitments as of the close of business on such day is less than 35% of the aggregate commitments (the “Minimum Utilization Amount”), the commitment fee will equal the sum of (a) the then applicable margin multiplied by (i) the Minimum Utilization Amount minus (ii) the aggregate outstanding principal balance of the advances on such day and (b) 0.50% multiplied by 65% of the commitments and (2) if the utilized portion of the aggregate commitments is greater than or equal to the Minimum Utilization Amount, the commitment fee will equal 0.50% multiplied by the unused amount of the commitments.
Current report
Borrowing under the SPV Credit Facility is subject to, among other things, a minimum borrowing base. The SPV Credit Facility is secured primarily by a pledge of 100% of the equity interest in the SPV held by us and the SPV’s assets, which consist of certain bank loans or securities. The SPV has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.
Current report
Termination of Revolving Credit Facility
Current report
On October 16, 2025, we terminated in full (i) the Revolving Credit Agreement and (ii) the amended and restated guarantee, pledge and security agreement, dated as of April 24, 2019 (as amended from time to time, the “Guarantee and Security Agreement”), by and among us, as borrower, the subsidiary guarantors party thereto, ING, as revolving administrative agent, each financing agent and designated indebtedness holder party thereto, and ING, as collateral agent. The Revolving Credit Agreement and the Guarantee and Security Agreement were terminated concurrently with the satisfaction of all of our obligations and liabilities to the lending parties thereunder, including, without limitation, payments of principal and interest, other fees, breakage costs and other amounts owing to the lending parties.
Current report
Distributions
Current report
Full Redemption of January 2026 Notes
Current report
On November 3, 2025, we fully redeemed the outstanding $100.0 million in aggregate principal amount of the January 2026 Notes for a total redemption price of $101.2 million which equaled 100% of the aggregate principal amount of the January 2026 Notes being redeemed on redemption date, plus accrued and unpaid interest to, but excluding, the redemption date.
Removed paragraphs (6)
Previous report
Below is a summary of the changes in total investment income for the six months ended June 30, 2025 as compared to the same period in 2024 (dollars in millions):
Previous report
Below is a summary of the changes in total expenses, including income tax provision, for the six months ended June 30, 2025 as compared to the same period in 2024 (dollars in millions):
Previous report
Net investment income increased by $2.3 million, or 6.6%, to $36.9 million during the six months ended June 30, 2025 as compared to the same period in 2024, as a result of the $6.2 million increase in total investment income, partially offset by the $3.9 million increase in total expenses, including base management fee waiver and income tax provision.
Previous report
SBA Debentures
Previous report
Credit Facility
Previous report
On July 2, 2025, we invested $8.5 million in first lien debt and $4.3 million in preferred equity in Sogno Toscano, LLC, a single brand distributor of authentic high-quality Italian foods, primarily serving the food service industry.
Reworded paragraphs (55)
Previous wording
We have certain wholly-owned subsidiaries (the “Taxable Subsidiaries”), each of which generally holds one or more of our portfolio investments listed on the consolidated schedules of investments, and have elected to be treated as corporations for U.S. federal income tax purposes and are thus subject to U.S. federal income tax imposed at corporate rates. The Taxable Subsidiaries are consolidated for financial reporting purposes, such that our consolidated financial statements reflect our investment in the portfolio company investments owned by the Taxable Subsidiaries. The purpose of the Taxable Subsidiaries are to permit us to hold equity investments in portfolio companies that are classified as partnerships for U.S. federal income tax purposes (such as entities organized as limited liability companies (“LLCs”) or other forms of pass through entities) while complying with the “source-of-income” requirements contained in the RIC tax provisions. The Taxable Subsidiaries are not consolidated with us for U.S. federal income tax purposes, and each Taxable Subsidiary will be subject to U.S. federal income tax on its taxable income. Any such income or expense is reflected in the consolidated statements of operations.
Current wording
We have certain wholly-owned subsidiaries (the “Taxable Subsidiaries”), each of which generally holds one or more of our portfolio investments listed on the consolidated schedules of investments, and have elected to be treated as corporations for U.S. federal income tax purposes and are thus subject to U.S. federal income tax imposed at corporate rates. The Taxable Subsidiaries are consolidated for financial reporting purposes, such that our consolidated financial statements reflect our investment in the portfolio company investments owned by the Taxable Subsidiaries. The purpose of the Taxable Subsidiaries is to permit us to hold equity investments in portfolio companies that are classified as partnerships for U.S. federal income tax purposes (such as entities organized as limited liability companies (“LLCs”) or other forms of pass through entities) while complying with the “source-of-income” requirements contained in the RIC tax provisions. The Taxable Subsidiaries are not consolidated with us for U.S. federal income tax purposes, and each Taxable Subsidiary will be subject to U.S. federal income tax on its taxable income. Any such income or expense is reflected in the consolidated statements of operations.
Previous wording
During the six months ended June 30, 2025 and 2024, we invested $210.0 million and $208.3 million, respectively, in debt and equity investments including eleven and eight new portfolio companies, respectively. During the six months ended June 30, 2025 and 2024, we received proceeds from sales or repayments, including principal, return of capital dividends and net realized gains (losses), of $166.6 million and $103.3 million, respectively, including an exit of five portfolio companies and two portfolio companies, respectively. The following table summarizes purchases of investments and sales and repayments of investments by type for the six months ended June 30, 2025 and 2024 (dollars in millions).
Current wording
During the nine months ended September 30, 2025 and 2024, we invested $284.5 million and $274.2 million, respectively, in debt and equity investments including twelve and eleven new portfolio companies, respectively. During the nine months ended September 30, 2025 and 2024, we received proceeds from sales or repayments, including principal, return of capital dividends and net realized gains (losses), of $203.3 million and $154.1 million, respectively, including an exit of five portfolio companies and six portfolio companies, respectively. The following table summarizes purchases of investments and sales and repayments of investments by type for the nine months ended September 30, 2025 and 2024 (dollars in millions).
Previous wording
(1) For the six months ended June 30, 2025 and 2024, first lien debt includes unitranche securities, which account for 58.4% and 29.9% of purchases, respectively. For the six months ended June 30, 2025 and 2024, first lien debt includes unitranche securities, which account for 22.6% and 5.0% of repayments, respectively.
Current wording
(1) For the nine months ended September 30, 2025 and 2024, first lien debt includes unitranche securities, which account for 49.8% and 32.3% of purchases, respectively. For the nine months ended September 30, 2025 and 2024, first lien debt includes unitranche securities, which account for 2.6% and 6.3% of repayments, respectively.
Previous wording
As of June 30, 2025, the fair value of our investment portfolio totaled $1.1 billion and consisted of 92 active portfolio companies and five portfolio companies that have sold their underlying operations. As of June 30, 2025, 50 portfolio companies’ debt investments bore interest at a variable rate, which represented $718.6 million, or 71.1%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed-rate investments. Overall, the portfolio had net unrealized appreciation of $19.9 million as of June 30, 2025. As of June 30, 2025, our average active portfolio company investment at amortized cost was $12.3 million, which excludes investments in five portfolio companies that have sold their underlying operations.
Current wording
As of September 30, 2025, the fair value of our investment portfolio totaled $1.2 billion and consisted of 92 active portfolio companies and six portfolio companies that have sold their underlying operations. As of September 30, 2025, 50 portfolio companies’ debt investments bore interest at a variable rate, which represented $755.3 million, or 72.0%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed-rate investments. Overall, the portfolio had net unrealized appreciation of $23.4 million as of September 30, 2025. As of September 30, 2025, our average active portfolio company investment at amortized cost was $12.6 million, which excludes investments in six portfolio companies that have sold their underlying operations.
Previous wording
The weighted average yield on debt investments as of June 30, 2025 and December 31, 2024 was 13.1% and 13.3%, respectively. The weighted average yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of all of our and our subsidiaries’ fees and expenses. The weighted average yields were computed using the effective interest rates for debt investments at cost including the accretion of OID and debt investment origination fees, but excluding investments on non-accrual status.
Current wording
The weighted average yield on debt investments as of September 30, 2025 and December 31, 2024 was 13.0% and 13.3%, respectively. The weighted average yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of all of our and our subsidiaries’ fees and expenses. The weighted average yields were computed using the effective interest rates for debt investments at cost including the accretion of OID and debt investment origination fees, but excluding investments on non-accrual status.
Previous wording
(1) Includes unitranche investments, which account for 46.9% and 47.9% of our portfolio on a fair value and cost basis as of June 30, 2025, respectively. Includes unitranche investments, which account for 39.9% and 40.4% of our portfolio on a fair value and cost basis as of December 31, 2024, respectively.
Current wording
(1) Includes unitranche investments, which account for 46.7% and 47.7% of our portfolio on a fair value and cost basis as of September 30, 2025, respectively. Includes unitranche investments, which account for 39.9% and 40.4% of our portfolio on a fair value and cost basis as of December 31, 2024, respectively.
Previous wording
Comparison of three and six months ended June 30, 2025 and 2024
Current wording
Comparison of three and nine months ended September 30, 2025 and 2024
Previous wording
For the three months ended June 30, 2025, total investment income was $40.0 million, an increase of $4.3 million or 12.1%, from $35.7 million of total investment income for the three months ended June 30, 2024. As reflected in the table above, the increase is primarily attributable to the following:
Current wording
For the three months ended September 30, 2025, total investment income was $37.3 million, a decrease of $1.1 million or (2.9%), from $38.4 million of total investment income for the three months ended September 30, 2024. As reflected in the table above, the decrease is primarily attributable to the following:
Previous wording
$1.4 million increase in total interest income (which includes payment-in-kind ("PIK") interest income) resulting from an increase in average debt investment balances, partially offset by a decrease in weighted average yield on debt investment balances outstanding during 2025 as compared to the same period in 2024.
Current wording
$0.3 million increase in total interest income (which includes a $1.4 million increase in payment-in-kind ("PIK") interest income) resulting from an increase in average debt investment balances, partially offset by a decrease in weighted average yield on debt investment balances outstanding during 2025 as compared to the same period in 2024.
Previous wording
$1.1 million increase in dividend income due to an increase in distributions received from equity investments, during 2025 as compared to the same period in 2024.
Current wording
$0.4 million decrease in dividend income due to a decrease in distributions received from equity investments, during 2025 as compared to the same period in 2024.
Previous wording
$2.4 million increase in fee income resulting from an increase in prepayment and origination fees during 2025 as compared to the same period in 2024.
Current wording
$1.4 million decrease in fee income resulting from a decrease in prepayment, origination, and amendment fees during 2025 as compared to the same period in 2024.
Previous wording
$0.3 million increase in interest on idle funds and other income due to an increase in average cash balances outstanding during 2025 as compared to the same period in 2024.
Current wording
$0.4 million increase in interest on idle funds and other income due to an increase in average cash balances outstanding during 2025 as compared to the same period in 2024.
Previous wording
For the six months ended June 30, 2025, total investment income was $76.5 million, an increase of $6.2 million or 8.7%, from the $70.3 million of total investment income for the six months ended June 30, 2024. As reflected in the table above, the increase is primarily attributable to the following:
Current wording
For the nine months ended September 30, 2025, total investment income was $113.7 million, an increase of $5.0 million or 4.6%, from the $108.7 million of total investment income for the nine months ended September 30, 2024. As reflected in the table above, the increase is primarily attributable to the following:
Previous wording
$3.7 million increase in total interest income (which includes a $0.8 million increase in PIK interest income) resulting from an increase in average debt investment balances, partially offset by a decrease in weighted average yield on debt investment balances outstanding during 2025 as compared to the same period in 2024.
Current wording
$4.0 million increase in total interest income (which includes a $2.2 million increase in PIK interest income) resulting from an increase in average debt investment balances, partially offset by a decrease in weighted average yield on debt investment balances outstanding during 2025 as compared to the same period in 2024.
Previous wording
$0.2 million increase in dividend income due to an increase in distributions received from equity investments, during 2025 as compared to the same period in 2024.
Current wording
$0.8 million increase in dividend income due to an increase in distributions received from equity investments, during 2025 as compared to the same period in 2024.
Previous wording
$2.1 million increase in fee income resulting from an increase in prepayment and origination fees, partially offset by a decrease in amendment fees during 2025 as compared to the same period in 2024.
Current wording
$0.7 million increase in fee income resulting from an increase in prepayment and origination fees, partially offset by a decrease in amendment fees during 2025 as compared to the same period in 2024.
Previous wording
$0.7 million decrease in interest on idle funds and other income due to a decrease in average cash balances outstanding during 2025 as compared to the same period in 2024.
Current wording
$0.5 million decrease in interest on idle funds and other income due to a decrease in average cash balances outstanding during 2025 as compared to the same period in 2024.
Previous wording
For the three months ended June 30, 2025, total expenses, including the base management fee waiver and income tax provision, were $21.3 million, an increase of $2.6 million or 14.0%, from the $18.7 million of total expenses, including income tax provision, for the three months ended June 30, 2024. As reflected in the table above, changes across the periods were primarily attributable to the following:
Current wording
For the three months ended September 30, 2025, total expenses, including the base management fee waiver and income tax provision, were $19.9 million, an increase of $2.9 million or 17.2%, from the $17.0 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended September 30, 2024. As reflected in the table above, changes across the periods were primarily attributable to the following:
Previous wording
$1.7 million increase in interest and financing expenses due to an increase in the weighted average interest rate of our debt outstanding and an increase in weighted average borrowings outstanding during 2025 as compared to the same period in 2024.
Current wording
$1.6 million increase in interest and financing expenses due to an increase in the weighted average interest rate of our debt outstanding and an increase in weighted average borrowings outstanding during 2025 as compared to the same period in 2024.
Previous wording
$0.4 million net increase in the base management fee, including the base management fee waiver, due to higher average total assets during 2025 as compared to the same period in 2024.
Current wording
$0.5 million net increase in the base management fee, including the base management fee waiver, due to higher average total assets during 2025 as compared to the same period in 2024.
Previous wording
$0.5 million net increase in the income incentive fee due to an increase in pre-incentive fee net investment income during 2025 as compared to the same period in 2024.
Current wording
$0.8 million decrease in the income incentive fee due to a decrease in pre-incentive fee net investment income during 2025 as compared to the same period in 2024.
Previous wording
$0.3 million increase in professional fees due to increased proxy solicitation fees during 2025 as compared to the same period in 2024.
Current wording
$0.2 million increase in professional fees due to increased legal fees during 2025 as compared to the same period in 2024.
Previous wording
$0.1 million decrease in the accrued capital gains incentive fee due to a net $0.5 million decrease in net gain on investments and realized losses on extinguishment of debt during 2025 as compared to the same period in 2024.
Current wording
$1.4 million increase in the accrued capital gains incentive fee due to a net $6.7 million increase in net gain on investments and realized losses on extinguishment of debt during 2025 as compared to the same period in 2024.
Previous wording
For the six months ended June 30, 2025, total expenses, including the base management fee waiver and income tax provision, were $39.6 million, an increase of $3.9 million or 10.9%, from the $35.7 million of total expenses, including income tax provision, for the six months ended June 30, 2024. As reflected in the table above, changes across periods were primarily attributable to the following:
Current wording
For the nine months ended September 30, 2025, total expenses, including the base management fee waiver and income tax provision, were $59.5 million, an increase of $6.8 million or 12.9%, from the $52.7 million of total expenses, including the base management fee waiver and income tax provision, for the nine months ended September 30, 2024. As reflected in the table above, changes across periods were primarily attributable to the following:
Previous wording
$2.5 million increase in interest and financing expenses due to an increase in the weighted average interest rate of our debt outstanding and an increase in weighted average borrowings outstanding during 2025 as compared to 2024.
Current wording
$4.0 million increase in interest and financing expenses due to an increase in the weighted average interest rate of our debt outstanding and an increase in weighted average borrowings outstanding during 2025 as compared to 2024.
Previous wording
$0.9 million net increase in base management fee, including the base management fee waiver, due to higher average total assets during 2025 as compared to 2024.
Current wording
$1.3 million net increase in base management fee, including the base management fee waiver, due to higher average total assets during 2025 as compared to 2024.
Previous wording
$0.3 million increase in the income incentive fee due to an increase in pre-incentive fee net investment income during 2025 as compared to the same period in 2024.
Current wording
$0.3 million net decrease in the income incentive fee due to a decrease in pre-incentive fee net investment income during 2025 as compared to the same period in 2024.
Previous wording
$0.2 million increase in professional fees due to increased proxy solicitation fees during 2025 as compared to 2024.
Current wording
$0.6 million increase in professional fees due to increased proxy solicitation and legal fees during 2025 as compared to 2024.
Previous wording
$(0.3) million decrease in the accrued capital gains incentive fee due to a net $(1.5) million decrease in net gain on investments and realized losses on extinguishment of debt during 2025 as compared to the same period in 2024.
Current wording
$1.1 million increase in the accrued capital gains incentive fee due to a net $5.2 million increase in net gain on investments and realized losses on extinguishment of debt during 2025 as compared to the same period in 2024.
Previous wording
Net investment income increased by $1.7 million, or 9.9%, to $18.7 million during the three months ended June 30, 2025 as compared to the same period in 2024, as a result of the $4.3 million increase in total investment income, partially offset by the $2.6 million increase in total expenses, including base management fee waiver and income tax provision.
Current wording
Net investment income decreased by $1.8 million, or (3.2%), to $54.2 million during the nine months ended September 30, 2025 as compared to the same period in 2024, as a result of the $5.0 million increase in total investment income, partially offset by the $6.8 million increase in total expenses, including the base management fee waiver and income tax provision.
Previous wording
For the three and six months ended June 30, 2024, the total net realized gain/(loss) on investments, before income tax (provision)/benefit, was $10.8 and $12.5 million. Income tax (provision) benefit from realized gains on investments was (1.6) and $(1.5) million for the three and six months ended June 30, 2024. We realize a gain/(loss) on our equity investments primarily when we either sell our equity investment or the underlying portfolio company is sold. Realized gains (losses) for the three and six months ended June 30, 2024 are summarized below (dollars in millions):
Current wording
For the three and nine months ended September 30, 2025, the total net realized gain/(loss) on investments, before income tax (provision)/benefit, was $(0.9) million and $4.8 million, respectively. Income tax (provision) benefit from realized gains on investments was $(0.4) million and $(2.3) million for the three and nine months ended September 30, 2025, respectively. We realize a gain/(loss) on our equity investments primarily when we either sell our equity investment or the underlying portfolio company is sold. Realized gains (losses) for the three and nine months ended September 30, 2025 are summarized below (dollars in millions):
Previous wording
For the three and six months ended June 30, 2025, the total net realized gain/(loss) on investments, before income tax (provision)/benefit, was $(7.6) million and $5.7 million, respectively. Income tax (provision) benefit from realized gains on investments was zero and $(1.9) million for the three and six months ended June 30, 2025. We realize a gain/(loss) on our equity investments primarily when we either sell our equity investment or the underlying portfolio company is sold. Realized gains (losses) for the three and six months ended June 30, 2025 are summarized below (dollars in millions):
Current wording
For the three and nine months ended September 30, 2024, the total net realized gain/(loss) on investments, before income tax (provision)/benefit, was $(0.4) million and $12.2 million. Income tax (provision) benefit from realized gains on investments was zero and $(1.6) million for the three and nine months ended September 30, 2024, respectively. We realize a gain/(loss) on our equity investments primarily when we either sell our equity investment or the underlying portfolio company is sold. Realized gains (losses) for the three and nine months ended September 30, 2024 are summarized below (dollars in millions):
Previous wording
During the three and six months ended June 30, 2025 and 2024, we recorded a net change in unrealized appreciation (depreciation) on investments attributable to the following (dollars in millions):
Current wording
During the three and nine months ended September 30, 2025 and 2024, we recorded a net change in unrealized appreciation (depreciation) on investments attributable to the following (dollars in millions):
Previous wording
Net increase (decrease) in net assets resulting from operations during the three months ended June 30, 2025 and 2024 was $25.3 million and $24.1 million, respectively, as a result of the events described above.
Current wording
Net increase (decrease) in net assets resulting from operations during the three months ended September 30, 2025 and 2024 was $19.1 million and $16.5 million, respectively, as a result of the events described above.
Previous wording
Net increase (decrease) in net assets resulting from operations during the six months ended June 30, 2025 and 2024 was $44.9 million and $44.2 million, respectively, as a result of the events described above.
Current wording
Net increase (decrease) in net assets resulting from operations during the nine months ended September 30, 2025 and 2024 was $64.1 million and $60.7 million, respectively, as a result of the events described above.
Previous wording
As of June 30, 2025, we had $91.2 million in cash and cash equivalents and our net assets totaled $692.3 million. We believe that our current cash and cash equivalents on hand, our Credit Facility, our continued access to SBA-guaranteed debentures, and our anticipated cash flows from investments will provide adequate capital resources with which to operate and finance our investment business and make distributions to our stockholders for at least the next 12 months. We intend to generate additional cash primarily from the future offerings of debt and equity securities (including the ATM Program) and future borrowings, as well as cash flows from operations, including income earned from investments in our portfolio companies. On both a short-term and long-term basis, our primary use of funds will be investments in portfolio companies and cash distributions to our stockholders. During the six months ended June 30, 2025, we repaid $12.5 million of SBA debentures relating to Fund III that would have matured during the period March 1, 2032 through September 1, 2033. Our remaining outstanding SBA debentures begin to mature in 2029 and subsequent years through 2035, which will require repayment on or before the respective maturity dates. In light of current market conditions, we will continually evaluate our overall liquidity position and take proactive steps to maintain that position based on the current circumstances. This “Financial Liquidity and Capital Resources” section should be read in conjunction with the notes of our consolidated financial statements.
Current wording
As of September 30, 2025, we had $62.3 million in cash and cash equivalents and our net assets totaled $711.0 million. We believe that our current cash and cash equivalents on hand, our credit facility, our continued access to SBA-guaranteed debentures, and our anticipated cash flows from investments will provide adequate capital resources with which to operate and finance our investment business and make distributions to our stockholders for at least the next 12 months. We intend to generate additional cash primarily from the future offerings of debt and equity securities (including the ATM Program) and future borrowings, as well as cash flows from operations, including income earned from investments in our portfolio companies. On both a short-term and long-term basis, our primary use of funds will be investments in portfolio companies and cash distributions to our stockholders. During the nine months ended September 30, 2025, we repaid $28.5 million of SBA debentures relating to Fund III that would have matured during the period March 1, 2032 through September 1, 2033. Our remaining outstanding SBA debentures begin to mature in 2029 and subsequent years through 2036, which will require repayment on or before the respective maturity dates. In light of current market conditions, we will continually evaluate our overall liquidity position and take proactive steps to maintain that position based on the current circumstances. This “Financial Liquidity and Capital Resources” section should be read in conjunction with the notes of our consolidated financial statements.
Previous wording
For the six months ended June 30, 2025, we experienced a net increase in cash and cash equivalents in the amount of $34.0 million. During that period, we made payments of $10.3 million of cash for operating activities, which included the funding of $210.0 million of investments that was partially offset by proceeds received from sales and repayments of investments of $166.6 million. During the same period, we received gross proceeds from the issuance of the March 2030 Notes of $100.0 million, received proceeds from the issuances of SBA debentures of $39.5 million, redeemed $25.0 million of the aggregate principal amount on our January 2026 Notes, repaid SBA debentures of $12.5 million relating to Fund III, repaid $45.0 million of our Credit Facility, received net proceeds from the ATM Program of approximately $28.2 million, received repayments of $0.4 million on our secured borrowings, paid cash dividends to stockholders of $36.5 million, and made payment of deferred financing costs related to our debt financings of $4.0 million.
Current wording
For the nine months ended September 30, 2025, we experienced a net increase in cash and cash equivalents in the amount of $5.2 million. During that period, we made payments of $42.2 million of cash for operating activities, which included the funding of $284.5 million of investments that was partially offset by proceeds received from sales and repayments of investments of $203.3 million. During the same period, we received gross proceeds from the issuance of the March 2030 Notes of $100.0 million, received proceeds from the issuances of SBA debentures of $44.5 million, redeemed $25.0 million of the aggregate principal amount on our January 2026 Notes, repaid SBA debentures of $28.5 million relating to Fund III, repaid $30.0 million of our Revolving Credit Facility, received net proceeds from the ATM Program of approximately $47.8 million, received repayments of $0.8 million on our secured borrowings, paid cash dividends to stockholders of $56.5 million, and made payment of deferred financing costs related to our debt financings of $4.1 million.
Previous wording
Each of Fund III and Fund IV is licensed to operate as an SBIC, and has the ability to issue debentures guaranteed by the SBA at favorable interest rates. Under the SBA regulations, an SBIC can have outstanding at any time debentures guaranteed by the SBA in an amount up to twice its regulatory capital. The SBA regulations currently limit the amount that is available to be borrowed by any SBIC and guaranteed by the SBA to 300.0% of an SBIC’s regulatory capital or $175.0 million, whichever is less. For two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million. The SBA may limit the amount that may be drawn each year under the SBA debenture commitments, and each issuance of leverage is conditioned on such SBIC Fund's full compliance, as determined by the SBA, with the terms and conditions under SBA regulations. SBA debentures have fixed interest rates that approximate prevailing 10-year Treasury Note rates plus a spread and have a maturity of ten years with interest payable semi-annually. The principal amount of the SBA debentures is not required to be paid before maturity but may be pre-paid at any time. On September 30, 2024, Fund IV received a license to operate as a SBIC. As of June 30, 2025, Fund III and Fund IV had $162.5 million and $39.5 million outstanding SBA debentures, respectively. Subject to SBA regulatory requirements and approval of SBA debenture commitments, we may access up to $135.5 million of additional SBA debentures under the SBIC debenture program. For more information on the SBA debentures, please refer to Note 6 to our consolidated financial statements.
Current wording
Each of Fund III and Fund IV is licensed to operate as an SBIC, and has the ability to issue debentures guaranteed by the SBA at favorable interest rates. Under the SBA regulations, an SBIC can have outstanding at any time debentures guaranteed by the SBA in an amount up to twice its regulatory capital. The SBA regulations currently limit the amount that is available to be borrowed by any SBIC and guaranteed by the SBA to 300.0% of an SBIC’s regulatory capital or $175.0 million, whichever is less. For two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million. The SBA may limit the amount that may be drawn each year under the SBA debenture commitments, and each issuance of leverage is conditioned on such SBIC Fund's full compliance, as determined by the SBA, with the terms and conditions under SBA regulations. SBA debentures have fixed interest rates that approximate prevailing 10-year Treasury Note rates plus a spread and have a maturity of ten years with interest payable semi-annually. The principal amount of the SBA debentures is not required to be paid before maturity but may be pre-paid at any time. On September 30, 2024, Fund IV received a license to operate as a SBIC. As of September 30, 2025, Fund III and Fund IV had $146.5 million and $44.5 million outstanding SBA debentures, respectively. Subject to SBA regulatory requirements and approval of SBA debenture commitments, we may access up to $130.5 million of additional SBA debentures under the SBIC debenture program. For more information on the SBA debentures, please refer to Note 6 to our consolidated financial statements.
Previous wording
On June 16, 2014, we entered into a senior secured revolving credit agreement (the "Credit Agreement" and the senior secured revolving credit facility, the “Credit Facility”) with ING Capital LLC (“ING”), as the administrative agent, collateral agent, and lender. The Credit Facility is secured by certain portfolio investments held by us, but portfolio investments held by the SBIC Funds are not collateral for the Credit Facility. On April 24, 2019, we entered into an Amended & Restated Senior Secured Revolving Credit Agreement (the “Amended Credit Agreement”) among us, as borrower, the lenders party thereto, and ING, as administrative agent. On June 26, 2020, we entered into an amendment to the Amended Credit Agreement that, among other changes, modified certain financial covenants. On August 17, 2022, the Company entered into a second amendment to the Amended Credit Agreement (“Second Amendment”). The Second Amendment, among other things: (i) changed the underlying benchmark used to compute interest under the Amended Credit Agreement to SOFR from LIBOR; (ii) reduced the applicable margin from 3.00% to 2.675% on SOFR loans prior to satisfying certain step-down conditions, and from 2.675% to 2.50% after satisfying certain step-down conditions, with commensurate reductions in the applicable margins for base rate loans; (iii) provided for a loan commitment availability period ending on August 17, 2026; (iv) extended the maturity date to August 17, 2027 from April 24, 2023; and (v) amended certain financial covenants, including (a) amending the asset coverage ratio to no less than 1.50 to 1.00 from no less than 2.00 to 1.00 (on a regulatory basis); and (b) requiring the Company to maintain a senior asset coverage ratio of no less than 2.00 to 1.00. On July 25, 2024, the Company entered into an incremental commitment agreement that increased the total commitment under the Credit Facility from $100.0 million to $140.0 million.
Current wording
On June 16, 2014, we entered into a senior secured revolving credit agreement (the senior secured revolving credit facility thereunder, the “Revolving Credit Facility”) with ING Capital LLC (“ING”), as the administrative agent, collateral agent, and lender. The Revolving Credit Facility is secured by certain portfolio investments held by us, but portfolio investments held by the SBIC Funds are not collateral for the Revolving Credit Facility. On April 24, 2019, we entered into an Amended & Restated Senior Secured Revolving Credit Agreement (as amended from time to time, the “Revolving Credit Agreement”) among us, as borrower, the lenders party thereto, and ING, as administrative agent. On June 26, 2020, we entered into an amendment to the Revolving Credit Agreement that, among other changes, modified certain financial covenants. On August 17, 2022, the Company entered into a second amendment to the Revolving Credit Agreement (“Second Amendment”). The Second Amendment, among other things: (i) changed the underlying benchmark used to compute interest under the Revolving Credit Agreement to SOFR from LIBOR; (ii) reduced the applicable margin from 3.00% to 2.675% on SOFR loans prior to satisfying certain step-down conditions, and from 2.675% to 2.50% after satisfying certain step-down conditions, with commensurate reductions in the applicable margins for base rate loans; (iii) provided for a loan commitment availability period ending on August 17, 2026; (iv) extended the maturity date to August 17, 2027 from April 24, 2023; and (v) amended certain financial covenants, including (a) amending the asset coverage ratio to no less than 1.50 to 1.00 from no less than 2.00 to 1.00 (on a regulatory basis); and (b) requiring the Company to maintain a senior asset coverage ratio of no less than 2.00 to 1.00. On July 25, 2024, the Company entered into an incremental commitment agreement that increased the total commitment under the Revolving Credit Facility from $100.0 million to $140.0 million.
Previous wording
We pay a commitment fee that varies depending on the size of the unused portion of the Credit Facility: 2.500% to 2.675% per annum on the unused portion of the Credit Facility at or below 35% of the commitments and 0.50% per annum on any remaining unused portion of the Credit Facility between the total commitments and the 35% minimum utilization. The Credit Facility is secured by a first priority security interest in all of our assets, excluding the assets of our SBIC subsidiaries.
Current wording
We pay a commitment fee that varies depending on the size of the unused portion of the Revolving Credit Facility: 2.500% to 2.675% per annum on the unused portion of the Revolving Credit Facility at or below 35% of the commitments and 0.50% per annum on any remaining unused portion of the Revolving Credit Facility between the total commitments and the 35% minimum utilization. The Revolving Credit Facility is secured by a first priority security interest in all of our assets, excluding the assets of our SBIC subsidiaries.
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Previous report — wording carried elsewhere
While we may co-invest with investment entities managed by the Investment Advisor or its affiliates, to the extent permitted by the 1940 Act and the rules and regulations thereunder, the 1940 Act imposes significant limits on co-investment. Our Investment