UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2013

OR

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

For the transition period           to         

Commission File No. 814-00663

ARES CAPITAL CORPORATION

(Exact name of Registrant as specified in its charter)

Maryland	33-1089684
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

245 Park Avenue, 44th Floor, New York, NY 10167

(Address of principal executive office)   (Zip Code)

(212) 750-7300

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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  xNo  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).   Yes o  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at May 6, 2013
Common stock, $0.001 par value	268,043,157

ARES CAPITAL CORPORATION

INDEX

Part I.	Financial Information
Item 1.	Financial Statements
	Consolidated Balance Sheet as of March 31, 2013 (unaudited) and December 31, 2012	2
	Consolidated Statement of Operations for the three months ended March 31, 2013 (unaudited) and March 31, 2012 (unaudited)	3
	Consolidated Schedule of Investments as of March 31, 2013 (unaudited) and December 31, 2012	4
	Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2013 (unaudited)	34
	Consolidated Statement of Cash Flows for the three months ended March 31, 2013 (unaudited) and March 31, 2012 (unaudited)	35
	Notes to Consolidated Financial Statements (unaudited)	36
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	59
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	78
Item 4.	Controls and Procedures	79
Part II.	Other Information
Item 1.	Legal Proceedings	80
Item 1A.	Risk Factors	80
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	80
Item 3.	Defaults Upon Senior Securities	80
Item 4.	Mine Safety Disclosures	80
Item 5.	Other Information	80
Item 6.	Exhibits	80

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in thousands, except per share data)

	As of
	March 31, 2013			December 31, 2012
	(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliate investments	$	3,982,686		$	3,822,715
Non-controlled affiliate company investments	290,932			323,059
Controlled affiliate company investments	1,756,841			1,778,781
Total investments at fair value (amortized cost of $5,959,788 and $5,823,451, respectively)	6,030,459			5,924,555
Cash and cash equivalents	102,451			269,043
Receivable for open trades	50			131
Interest receivable	115,991			108,998
Other assets	104,111			98,497
Total assets	$	6,353,062		$	6,401,224
LIABILITIES
Debt	$	2,179,127		$	2,195,872
Management and incentive fees payable	112,600			131,585
Accounts payable and other liabilities	49,262			53,178
Interest and facility fees payable	27,976			30,603
Payable for open trades	5,500			1,640
Total liabilities	2,374,465			2,412,878
Commitments and contingencies (Note 6)
STOCKHOLDERS’ EQUITY
Common stock, par value $.001 per share, 500,000 common shares authorized 248,896 and 248,653 common shares issued and outstanding, respectively	249			249
Capital in excess of par value	4,121,914			4,117,517
Accumulated overdistributed net investment income	(23,301		)	(27,910		)
Accumulated net realized loss on investments, foreign currency transactions, extinguishment of debt and other assets	(190,936		)	(202,614		)
Net unrealized gain on investments	70,671			101,104
Total stockholders’ equity	3,978,597			3,988,346
Total liabilities and stockholders’ equity	$	6,353,062		$	6,401,224
NET ASSETS PER SHARE	$	15.98		$	16.04

See accompanying notes to consolidated financial statements.

2

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share data)

	For the three months ended
	March 31, 2013			March 31, 2012
	(unaudited)			(unaudited)
INVESTMENT INCOME:
From non-controlled/non-affiliate company investments:
Interest income from investments	$	85,122		$	72,168
Capital structuring service fees	4,104			7,877
Dividend income	4,024			3,802
Management and other fees	4,498			328
Other income	2,011			2,748
Total investment income from non-controlled/non-affiliate company investments	99,759			86,923
From non-controlled affiliate company investments:
Interest income from investments	6,016			4,592
Dividend income	603			316
Management and other fees	—			63
Other income	91			25
Total investment income from non-controlled affiliate company investments	6,710			4,996
From controlled affiliate company investments:
Interest income from investments	53,039			56,125
Capital structuring service fees	1,887			9,783
Dividend income	27,462			5,101
Management and other fees	—			4,541
Other income	6,198			269
Total investment income from controlled affiliate company investments	88,586			75,819
Total investment income	195,055			167,738
EXPENSES:
Interest and credit facility fees	39,347			32,776
Base management fees	23,218			19,986
Incentive fees	20,085			26,386
Professional fees	3,144			3,686
Administrative fees	2,592			2,320
Other general and administrative	3,768			2,801
Total expenses	92,154			87,955
NET INVESTMENT INCOME BEFORE INCOME TAXES	102,901			79,783
Income tax expense, including excise tax	3,804			2,745
NET INVESTMENT INCOME	99,097			77,038
REALIZED AND UNREALIZED NET GAINS (LOSSES) ON INVESTMENTS:
Net realized gains (losses):
Non-controlled/non-affiliate company investments	10,651			462
Non-controlled affiliate company investments	17			3
Controlled affiliate company investments	1,010			(8,136		)
Net realized gains (losses)	11,678			(7,671		)
Net unrealized gains (losses):
Non-controlled/non-affiliate company investments	5,949			6,017
Non-controlled affiliate company investments	(1,353		)	10,093
Controlled affiliate company investments	(35,029		)	20,070
Net unrealized gains (losses)	(30,433		)	36,180
Net realized and unrealized gains (losses) on investments	(18,755		)	28,509
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS	$	80,342		$	105,547
BASIC AND DILUTED EARNINGS PER COMMON SHARE (see Note 9)	$	0.32		$	0.49
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING — BASIC AND DILUTED (see Note 9)	248,658			217,044

See accompanying notes to consolidated financial statements.

3

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2013

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost		Fair Value			Percentage of Net Assets
Investment Funds and Vehicles
AGILE Fund I, LLC (9)	Investment partnership	Member interest (0.50% interest)		4/1/2010	$	122	$	27	(2)
CIC Flex, LP (9)	Investment partnership	Limited partnership units (0.94 unit)		9/7/2007	1,050		2,120		(2)
Covestia Capital Partners, LP (9)	Investment partnership	Limited partnership interest (47.00% interest)		6/17/2008	1,059		1,170		(2)
Dynamic India Fund IV, LLC (9)	Investment company	Member interest (5.44% interest)		4/1/2010	4,822		2,962
HCI Equity, LLC (7)(8)(9)	Investment company	Member interest (100.00% interest)		4/1/2010	452		426
Imperial Capital Private Opportunities, LP (9)	Investment partnership	Limited partnership interest (80.00% interest)		5/10/2007	5,971		10,037		(2)
Partnership Capital Growth Fund I, L.P. (9)	Investment partnership	Limited partnership interest (25.00% interest)		6/16/2006	1,596		4,059		(2)
Partnership Capital Growth Fund III, L.P. (9)	Investment partnership	Limited partnership interest (2.50% interest)		10/5/2011	2,379		2,341		(2)
Piper Jaffray Merchant Banking Fund I, L.P. (9)	Investment partnership	Limited partnership interest (2.00% interest)		8/16/2012	389		341		(2)
Senior Secured Loan Fund LLC (7)(10)	Co-investment vehicle	Subordinated certificates ($1,250,904 par due 12/2022)	8.31% (Libor + 8.00%/Q)(22)	10/30/2009	1,244,833		1,269,667
VSC Investors LLC (9)	Investment company	Membership interest (1.95% interest)		1/24/2008	661		1,197		(2)
					1,263,332		1,294,347			32.53	%
Healthcare-Services
California Forensic Medical Group, Incorporated	Correctional facility healthcare operator	Senior secured loan ($54,047 par due 11/2018)	9.25% (Libor + 8.00%/Q)	11/16/2012	54,047		54,047		(3)(21)
CCS Group Holdings, LLC	Correctional facility healthcare operator	Class A units (601,937 units)		8/19/2010	602		1,293		(2)
CT Technologies Intermediate Holdings, Inc. and CT Technologies Holdings LLC (6)	Healthcare analysis services	Senior secured loan ($7,546 par due 3/2017)	7.75% (Libor + 6.50%/Q)	3/15/2011	7,546		7,471		(2)(21)
		Senior secured loan ($7,154 par due 3/2017)	7.75% (Libor + 6.50%/Q)	3/15/2011	7,154		7,082		(3)(21)
		Class A common stock (9,679 shares)		6/15/2007	4,000		4,931		(2)
		Class C common stock (1,546 shares)		6/15/2007	—		1,359		(2)
					18,700		20,843
INC Research, Inc.	Pharmaceutical and biotechnology consulting services	Common stock (1,410,000 shares)		9/27/2010	1,512		996		(2)
Intermedix Corporation	Revenue cycle management provider to the emergency healthcare industry	Junior secured loan ($112,000 par due 6/2019)	10.25% (Libor + 9.00%/Q)	12/27/2012	112,000		112,000		(2)(21)
JHP Group Holdings, Inc.	Manufacturer of specialty pharmaceutical products	Series A preferred stock (1,000,000 shares)	6.00% PIK	2/19/2013	1,000		1,000		(2)
Magnacare Holdings, Inc., Magnacare Administrative Services, LLC, and Magnacare, LLC	Healthcare professional provider	Senior secured loan ($69,971 par due 3/2018)	9.75% (Libor + 8.75%/Q)	9/15/2010	69,971		69,971		(2)(21)
		Senior secured loan ($57,900 par due 3/2018)	9.75% (Libor + 8.75%/Q)	9/15/2010	57,900		57,900		(3)(21)
		Senior secured loan ($4,825 par due 3/2018)	9.75% (Libor + 8.75%/Q)	3/16/2012	4,825		4,825		(4)(21)
					132,696		132,696
MW Dental Holding Corp.	Dental services	Senior secured revolving loan ($3,500 par due 4/2017)	8.50% (Libor + 7.00%/M)	4/12/2011	3,500		3,500		(2)(21)
		Senior secured loan ($54,885 par due 4/2017)	8.50% (Libor + 7.00%/M)	4/12/2011	54,885		54,885		(2)(21)
		Senior secured loan ($49,129 par due 4/2017)	8.50% (Libor + 7.00%/M)	4/12/2011	49,129		49,129		(3)(21)
		Senior secured loan ($9,875 par due 4/2017)	8.50% (Libor + 7.00%/M)	4/12/2011	9,875		9,875		(4)(21)
					117,389		117,389
Napa Management Services	Anesthesia management	Senior secured loan	6.50% (Libor +	4/15/2011	23,674		23,674		(2)(21)

4

As of March 31, 2013

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
Corporation	services provider	($23,674 par due 4/2018)	5.25%/Q)
		Senior secured loan ($33,518 par due 4/2018)	6.50% (Libor + 5.25%/Q)	4/15/2011	33,445	33,518	(3)(21)
		Common units (5,000 units)		4/15/2011	5,000	6,324	(2)
					62,119	63,516
Netsmart Technologies, Inc. and NS Holdings, Inc.	Healthcare technology provider	Senior secured loan ($39,844 par due 12/2017)	7.25% (Libor + 6.00%/Q)	12/18/2012	39,844	39,844	(2)(18)(21)
		Senior secured loan ($18 par due 12/2017)	8.25% (Base Rate + 5.00%/Q)	12/18/2012	18	18	(2)(18)(21)
		Senior secured loan ($232 par due 12/2017)	8.25% (Base Rate + 5.00%/Q)	12/18/2012	232	232	(2)(18)(21)
		Common stock (2,500,000 shares)		6/21/2010	2,500	3,106	(2)
					42,594	43,200
OnCURE Medical Corp.	Radiation oncology care provider	Common stock (857,143 shares)		8/18/2006	3,000	—	(2)
Passport Health Communications, Inc., Passport Holding Corp. and Prism Holding Corp.	Healthcare technology provider	Series A preferred stock (1,594,457 shares)		7/30/2008	11,156	12,388	(2)
		Common stock (16,106 shares)		7/30/2008	100	—	(2)
					11,256	12,388
PG Mergersub, Inc. and PGA Holdings, Inc.	Provider of patient surveys, management reports and national databases for the integrated healthcare delivery system	Junior secured loan ($45,000 par due 10/2018)	8.25% (Libor + 7.00%/Q)	4/19/2012	45,000	45,000	(2)(21)
		Preferred stock (333 shares)		3/12/2008	125	14	(2)
		Common stock (16,667 shares)		3/12/2008	167	703	(2)
					45,292	45,717
RCHP, Inc.	Operator of general acute care hospitals	Senior secured loan ($9,975 par due 11/2018)	7.00% (Libor + 5.75%/Q)	11/4/2011	9,950	9,975	(2)(21)
		Junior secured loan ($65,000 par due 5/2019)	11.50% (Libor + 10.00%/S)	11/4/2011	65,000	65,000	(2)(21)
					74,950	74,975
Reed Group, Ltd.	Medical disability management services provider	Equity interests		4/1/2010	—	—	(2)
Respicardia, Inc.	Developer of implantable therapies to improve cardiovascular health	Senior secured loan ($5,600 par due 7/2015)	11.00%	6/28/2012	5,574	5,600	(2)
		Warrants to purchase up to 99,094 shares of Series C preferred stock		6/26/2012	38	30	(2)
					5,612	5,630
Sage Products Holdings III, LLC	Patient infection control and preventive care solutions provider	Junior secured loan ($75,000 par due 6/2020)	9.25% (Libor + 8.00%/Q)	12/13/2012	75,000	75,000	(2)(21)
Soteria Imaging Services, LLC (6)	Outpatient medical imaging provider	Junior secured loan ($2,521 par due 11/2010)		4/1/2010	2,051	671	(2)(20)
		Preferred member units (1,823,179 units)		4/1/2010	—	—
					2,051	671
SurgiQuest, Inc.	Medical device company	Senior secured loan ($7,000 par due 10/2016)	10.00%	9/28/2012	6,812	7,000	(2)
		Warrants to purchase up to 54,672 shares of Series D-4 convertible preferred stock		9/28/2012	—	—	(2)
					6,812	7,000
U.S. Anesthesia Partners, Inc.	Anesthesiology service provider	Senior secured loan ($14,962 par due 12/2018)	6.50% (Libor + 5.50%/Q)	12/27/2012	14,962	14,962	(2)(21)
Vantage Oncology, Inc.	Radiation oncology care provider	Common stock (62,157 shares)		2/3/2011	4,670	2,252	(2)
Young Innovations, Inc.	Dental equipment manufacturer	Senior secured loan ($15,000 par due 1/2019)	6.25% (Libor + 5.00%/M)	1/31/2013	15,000	15,000	(2)(21)
		Senior secured loan ($22,143 par due 1/2019)	6.25% (Libor + 5.00%/M)	1/31/2013	22,143	22,143	(3)(21)
					37,143	37,143
					823,407	822,718		20.68	%
Education
American Academy Holdings,	Provider of education,	Senior secured revolving	7.25% (Base	3/18/2011	4,850	4,850	(2)(21)

5

As of March 31, 2013

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
LLC	training, certification, networking, and consulting services to medical coders and other healthcare professionals	loan ($4,850 par due 3/2019)	Rate + 4.00%/Q)
		Senior secured loan ($7,800 par due 3/2019)	6.00% (Libor + 5.00%/Q)	3/18/2011	7,800	7,800	(2)(21)
		Senior secured loan ($5,985 par due 3/2019)	6.00% (Libor + 5.00%/Q)	3/18/2011	5,985	5,985	(2)(21)
		Senior secured loan ($10,331 par due 3/2019)	6.00% (Libor + 5.00%/Q)	3/18/2011	10,331	10,331	(2)(21)
		Senior secured loan ($60,752 par due 3/2019)	6.00% (Libor + 5.00%/Q)	3/18/2011	60,752	60,752	(3)(21)
		Senior secured loan ($4,770 par due 3/2019)	6.00% (Libor + 5.00%/Q)	3/18/2011	4,770	4,770	(4)(21)
					94,488	94,488
Campus Management Corp. and Campus Management Acquisition Corp. (6)	Education software developer	Preferred stock (485,159 shares)		2/8/2008	10,520	5,461	(2)
Community Education Centers, Inc.	Offender re-entry and in-prison treatment services provider	Senior secured loan ($15,000 par due 12/2014)	6.25% (Libor + 5.25%/Q)	12/10/2010	15,000	15,000	(2)(15)(21)
		Senior secured loan ($714 par due 12/2014)	7.50% (Base Rate + 4.25%/Q)	12/10/2010	714	714	(2)(15)(21)
		Junior secured loan ($33,599 par due 12/2015)	15.30% (Libor + 15.00%/Q)	12/10/2010	33,599	30,912	(2)
		Junior secured loan ($10,139 par due 12/2015)	15.29% (Libor + 15.00%/Q)	12/10/2010	10,139	9,329	(2)
		Warrants to purchase up to 654,618 shares		12/10/2010	—	—	(2)
					59,452	55,955
eInstruction Corporation	Developer, manufacturer and retailer of educational products	Senior secured loan ($17,000 par due 7/2014)		4/1/2010	15,258	—	(2)(20)
		Senior subordinated loan ($33,305 par due 1/2015)		4/1/2010	24,152	—	(2)(20)
		Common stock (2,406 shares)		4/1/2010	926	—	(2)
					40,336	—
ELC Acquisition Corp., ELC Holdings Corporation, and Excelligence Learning Corporation (6)	Developer, manufacturer and retailer of educational products	Preferred stock (99,492 shares)	12.00% PIK	8/1/2011	10,845	12,119	(2)
		Common stock (50,800 shares)		8/1/2011	51	3,290	(2)
					10,896	15,409
Infilaw Holding, LLC	Operator of three for-profit law schools	Senior secured loan ($1 par due 8/2016)	9.50% (Libor + 8.50%/Q)	8/25/2011	1	1	(2)(21)
		Senior secured loan ($19,086 par due 8/2016)	9.50% (Libor + 8.50%/Q)	8/25/2011	19,086	19,086	(3)(21)
		Series A preferred units (124,890 units)	9.50% (Libor + 8.50%/Q)	8/25/2011	124,890	124,890	(2)(21)
		Series B preferred stock (3.91 units)		10/19/2012	9,245	9,884	(2)
					153,222	153,861
Instituto de Banca y Comercio, Inc. & Leeds IV Advisors, Inc.	Private school operator	Series B preferred stock (1,750,000 shares)		8/5/2010	5,000	7,412	(2)
		Series C preferred stock (2,512,586 shares)		6/7/2010	689	34	(2)
		Common stock (20 shares)		6/7/2010	—	—	(2)
					5,689	7,446
Lakeland Tours, LLC	Educational travel provider	Senior secured loan ($58,826 par due 12/2016)	9.25% (Libor + 8.25%/Q)	10/4/2011	58,678	58,826	(2)(14)(21)
		Senior secured loan ($1,760 par due 12/2016)	5.25% (Libor + 4.25%/Q)	10/4/2011	1,756	1,760	(2)(21)
		Senior secured loan ($40,362 par due 12/2016)	9.25% (Libor + 8.25%/Q)	10/4/2011	40,259	40,362	(3)(14)(21)
		Senior secured loan ($8,800 par due 12/2016)	5.25% (Libor + 4.25%/Q)	10/4/2011	8,777	8,800	(3)(21)
		Common stock (5,000 shares)		10/4/2011	5,000	4,892	(2)
					114,470	114,640
R3 Education, Inc. and EIC Acquisitions Corp.	Medical school operator	Preferred stock (8,800 shares)		7/30/2008	2,200	1,936	(2)
		Common membership		9/21/2007	15,800	29,443	(2)

6

As of March 31, 2013

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
		interest (26.27% interest) Warrants to purchase up to 27,890 shares		12/8/2009	—	—	(2)
					18,000	31,379
					507,073	478,639		12.03	%
Restaurants and Food Services
ADF Capital, Inc. & ADF Restaurant Group, LLC	Restaurant owner and operator	Senior secured revolving loan ($1,468 par due 11/2014)	6.50% (Libor + 3.50%/Q)	11/27/2006	1,468	1,468	(2)(21)
		Senior secured revolving loan ($50 par due 11/2014)	6.50% (Base Rate + 2.50%/Q)	11/27/2006	50	50	(2)(21)
		Senior secured loan ($9,168 par due 11/2015)	12.50% (Libor + 9.50%/Q)	11/27/2006	9,168	9,168	(2)(21)
		Senior secured loan ($10,995 par due 11/2015)	12.50% (Libor + 9.50%/Q)	11/27/2006	10,998	10,995	(3)(21)
		Promissory note ($20,020,806 par due 11/2016)	12.00% PIK	11/27/2006	16,584	19,978	(2)
		Warrants to purchase up to 0.61 shares		6/1/2006	—	2,352	(2)
					38,268	44,011
Benihana, Inc.	Restaurant owner and operator	Senior secured loan ($11,715 par due 2/2018)	9.25% (Libor + 8.00%/Q)	8/21/2012	11,715	11,715	(2)(21)
		Senior secured loan ($10,000 par due 2/2018)	9.25% (Libor + 8.00%/Q)	8/21/2012	10,000	10,000	(3)(21)
		Senior secured loan ($9,975 par due 2/2018)	9.25% (Libor + 8.00%/Q)	8/21/2012	9,975	9,975	(4)(21)
					31,690	31,690
Hojeij Branded Foods, Inc.	Airport restaurant operator	Senior secured revolving loan ($1,900 par due 2/2017)	9.00% (Libor + 8.00%/Q)	2/15/2012	1,900	1,900	(2)(21)
		Senior secured loan ($25,600 par due 2/2017)	9.00% (Libor + 8.00%/Q)	2/15/2012	25,053	25,600	(2)(21)
		Warrants to purchase up to 7.5% of membership interest		2/15/2012	—	164	(2)
		Warrants to purchase up to 324 shares of Class A common stock		2/15/2012	669	2,362	(2)
					27,622	30,026
Orion Foods, LLC (7)	Convenience food service retailer	Senior secured revolving loan ($9,000 par due 9/2014)	10.75% (Base Rate + 7.50%/M)	4/1/2010	9,000	9,000	(2)(21)
		Senior secured loan ($33,367 par due 9/2014)	10.00% (Libor + 8.50%/Q)	4/1/2010	33,367	33,367	(3)(21)
		Junior secured loan ($37,552 par due 9/2014)		4/1/2010	22,425	15,358	(2)(20)
		Preferred units (10,000 units)		10/28/2010	—	—	(2)
		Class A common units (25,001 units)		4/1/2010	—	—	(2)
		Class B common units (1,122,452 units)		4/1/2010	—	—	(2)
					64,792	57,725
OTG Management, LLC	Airport restaurant operator	Senior secured loan ($25,000 par due 12/2017)	8.75% (Libor + 7.25%/Q)	12/11/2012	25,000	25,000	(2)(21)
		Common units (3,000,000 units)		1/5/2011	3,000	1,955	(2)
		Warrants to purchase up to 7.73% of common units		6/19/2008	100	4,151	(2)
					28,100	31,106
Performance Food Group, Inc. and Wellspring Distribution Corp.	Food service distributor	Junior secured loan ($50,000 par due 5/2015)	11.00%	5/30/2012	50,000	50,000	(2)
		Junior secured loan ($112,250 par due 5/2015)	11.00%	5/23/2008	111,327	112,250	(2)
		Class A non-voting common stock (1,366,120 shares)		5/3/2008	7,500	6,823	(2)
					168,827	169,073
Restaurant Holding Company, LLC	Fast food restaurant operator	Senior secured loan ($60,667 par due 2/2017)	9.00% (Libor + 7.50%/M)	2/17/2012	59,676	60,667	(3)(21)
		Senior secured loan ($9,333 par due 2/2017)	9.00% (Libor + 7.50%/M)	2/17/2012	9,180	9,333	(4)(21)
					68,856	70,000
S.B. Restaurant Company	Restaurant owner and	Preferred stock (46,690		4/1/2010	—	—	(2)

7

As of March 31, 2013

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
	operator	shares) Warrants to purchase up to 257,429 shares of common stock		4/1/2010	—	—	(2)
					—	—
					428,155	433,631		10.90	%
Financial Services
AllBridge Financial, LLC (7)	Asset management services	Equity interests		4/1/2010	5,675	7,422
Callidus Capital Corporation (7)	Asset management services	Common stock (100 shares)		4/1/2010	3,000	1,735
Ciena Capital LLC (7)	Real estate and small business loan servicer	Senior secured revolving loan ($14,000 par due 12/2014)	6.00%	11/29/2010	14,000	14,000	(2)
		Senior secured loan ($32,000 par due 12/2016)	12.00%	11/29/2010	32,000	32,000	(2)
		Equity interests		11/29/2010	53,374	14,533	(2)
					99,374	60,533
Commercial Credit Group, Inc.	Commercial equipment finance and leasing company	Senior subordinated loan ($28,000 par due 5/2018)	12.75%	5/10/2012	28,000	28,000	(2)
Cook Inlet Alternative Risk, LLC	Risk management services	Senior subordinated loan ($2,500 par due 9/2015)	9.00%	9/30/2011	2,500	2,500	(2)
Financial Pacific Company	Commercial finance leasing	Preferred stock (6,500 shares)	8.00% PIK	10/13/2010	3,807	14,065
		Common stock (650,000 shares)		10/13/2010	—	—
					3,807	14,065
Gordian Acquisition Corp.	Financial services firm	Common stock (526 shares)		11/30/2012	—	—	(2)
Imperial Capital Group LLC	Investment services	2006 Class B common units (2,526 units)		5/10/2007	3	4	(2)
		2007 Class B common units (315 units)		5/10/2007	—	1	(2)
		Class A common units (7,710 units)		5/10/2007	14,997	18,949	(2)
					15,000	18,954
Ivy Hill Asset Management, L.P. (7)(9)	Asset management services	Member interest (100.00% interest)		6/15/2009	170,961	267,839
					328,317	401,048		10.08	%
Business Services
Access CIG, LLC	Records and information management services provider	Senior secured loan ($1,000 par due 10/2017)	7.00% (Libor + 5.75%/Q)	10/5/2012	1,000	1,000	(2)(21)
Cast & Crew Payroll, LLC and Centerstage Co-Investors, L.L.C. (6)	Payroll and accounting services provider to the entertainment industry	Senior secured loan ($19,750 par due 12/2017)	7.50% (Libor + 6.50%/Q)	12/24/2012	19,750	19,750	(2)(16)(21)
		Senior secured loan ($49,375 par due 12/2017)	7.50% (Libor + 6.50%/Q)	12/24/2012	49,375	49,375	(3)(21)
		Class A membership units (2,500,000 units)		12/24/2012	2,500	2,500	(2)
		Class B membership units (2,500,000 units)		12/24/2012	2,500	2,500	(2)
					74,125	74,125
CIBT Investment Holdings, LLC	Expedited travel document processing services	Class A shares (2,500 shares)		12/15/2011	2,500	3,477	(2)
CitiPostal Inc. (7)	Document storage and management services	Senior secured revolving loan ($1,000 par due 12/2013)	6.50% (Base Rate + 3.25%/Q)	4/1/2010	1,000	1,000	(2)(21)
		Senior secured loan ($525 par due 12/2013)	8.50% Cash, 5.50% PIK	4/1/2010	525	489	(2)
		Senior secured loan ($53,817 par due 12/2013)	8.50% Cash, 5.50% PIK	4/1/2010	53,817	50,066	(2)
		Senior subordinated loan ($17,936 par due 12/2015)		4/1/2010	13,038	—	(2)(20)
		Common stock (37,024 shares)		4/1/2010	—	—
					68,380	51,555
Command Alkon, Inc.	Software solutions provider to the ready-mix concrete industry	Junior secured loan ($39,130 par due 3/2018)	9.75% (Libor + 8.50%/Q)	9/28/2012	39,130	39,130	(2)(21)
Cornerstone Records Management, LLC	Physical records storage and management service provider	Senior secured loan ($18,403 par due 8/2016)	12.25% (Base Rate + 9.00%/Q)	8/12/2011	18,403	17,667	(2)(21)
HCPro, Inc. and HCP	Healthcare compliance	Senior subordinated loan		3/5/2013	5,500	5,500	(2)(20)

8

As of March 31, 2013

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
Acquisition Holdings, LLC (7)	advisory services	($17,103 par due 8/2014)
		Class A units (15,043,110 units)		6/26/2008	13,543	—	(2)
					19,043	5,500
IfByPhone Inc.	Voice-based marketing automation software provider	Senior secured loan ($2,000 par due 11/2015)	11.00%	10/15/2012	1,924	2,000	(2)
		Senior secured loan ($1,000 par due 1/2016)	11.00%	10/15/2012	1,000	1,000	(2)
		Warrant to purchase up to 124,300 shares of Series C preferred stock		10/15/2012	88	88	(2)
					3,012	3,088
Impact Innovations Group, LLC	IT consulting and outsourcing services	Member interest (50.00% interest)		4/1/2010	—	200
Investor Group Services, LLC (6)	Business consulting for private equity and corporate clients	Limited liability company membership interest (10.00% interest)		6/22/2006	—	805
Itel Laboratories, Inc.	Data services provider for building materials to property insurance industry	Senior secured loan ($22,182 par due 6/2018)	6.00% (Libor + 4.75%/M)	6/29/2012	22,182	22,182	(2)(21)
		Preferred units (1,798,391 units)		6/29/2012	1,000	1,118	(2)
					23,182	23,300
Multi-Ad Services, Inc. (6)	Marketing services and software provider	Preferred units (1,725,280 units)		4/1/2010	788	2,043
		Common units (1,725,280 units)		4/1/2010	—	—
					788	2,043
MVL Group, Inc. (7)	Marketing research provider	Senior secured revolving loan ($806 par due 6/2012)	4.80% (Libor + 4.50%/Q)	6/28/2012	806	806	(2)
		Senior subordinated loan ($37,003 par due 7/2012)		4/1/2010	34,636	7,216	(2)(20)
		Junior subordinated loan ($185 par due 7/2012)		4/1/2010	—	—	(2)(20)
		Common stock (560,716 shares)		4/1/2010	—	—	(2)
					35,442	8,022
NComputing, Inc.	Desktop virtualization hardware and software technology service provider	Senior secured loan ($6,500 par due 7/2016)	10.50%	3/20/2013	6,500	6,500	(2)
		Warrant to purchase up to 462,726 shares of Series C preferred stock		3/20/2013	—	41	(2)
					6,500	6,541
Pillar Processing LLC and PHL Holding Co. (6)	Mortgage services	Senior secured loan ($6,659 par due 11/2018)		7/31/2008	6,248	6,659	(2)(20)