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 June 30, 2015

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   x   No   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 August 4, 2015
Common stock, $0.001 par value	314,468,685

ARES CAPITAL CORPORATION

INDEX

Part I.	Financial Information
Item 1.	Financial Statements
	Consolidated Balance Sheet as of June 30, 2015 (unaudited) and December 31, 2014	3
	Consolidated Statement of Operations for the three and six months ended June 30, 2015 and 2014 (unaudited)	4
	Consolidated Schedule of Investments as of June 30, 2015 (unaudited) and December 31, 2014	5
	Consolidated Statement of Stockholders’ Equity for the six months ended June 30, 2015 and 2014 (unaudited)	50
	Consolidated Statement of Cash Flows for the six months ended June 30, 2015 and 2014 (unaudited)	51
	Notes to Consolidated Financial Statements (unaudited)	52
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	83
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	111
Item 4.	Controls and Procedures	112
Part II.	Other Information
Item 1.	Legal Proceedings	112
Item 1A.	Risk Factors	112
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	113
Item 3.	Defaults Upon Senior Securities	113
Item 4.	Mine Safety Disclosures	113
Item 5.	Other Information	113
Item 6.	Exhibits	113

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in thousands, except per share data)

	As of
	June 30, 2015			December 31, 2014
	(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliate company investments	$	5,671,380		$	6,270,075
Non-controlled affiliate company investments	293,367			228,716
Controlled affiliate company investments	2,608,648			2,529,588
Total investments at fair value (amortized cost of $8,452,913 and $8,875,095, respectively)	8,573,395			9,028,379
Cash and cash equivalents	299,079			194,555
Interest receivable	138,738			160,981
Receivable for open trades	3,966			859
Other assets	109,683			112,999
Total assets	$	9,124,861		$	9,497,773
LIABILITIES
Debt	$	3,582,199		$	3,924,482
Base management fees payable	33,021			34,497
Income based fees payable	28,949			33,070
Capital gains incentive fees payable	72,448			92,979
Accounts payable and other liabilities	67,073			81,892
Interest and facility fees payable	58,350			46,974
Payable for open trades	380			164
Total liabilities	3,842,420			4,214,058
Commitments and contingencies (Note 7)
STOCKHOLDERS’ EQUITY
Common stock, par value $0.001 per share, 500,000 common shares authorized; 314,469 and 314,108 common shares issued and outstanding, respectively	314			314
Capital in excess of par value	5,334,249			5,328,057
Accumulated overdistributed net investment income	(57,230		)	(32,846		)
Accumulated net realized loss on investments, foreign currency transactions, extinguishment of debt and other assets	(114,505		)	(166,668		)
Net unrealized gains on investments and foreign currency transactions	119,613			154,858
Total stockholders’ equity	5,282,441			5,283,715
Total liabilities and stockholders’ equity	$	9,124,861		$	9,497,773
NET ASSETS PER SHARE	$	16.80		$	16.82

See accompanying notes to consolidated financial statements.

3

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2014			2015			2014
INVESTMENT INCOME:
From non-controlled/non-affiliate company investments:
Interest income from investments	$	122,616		$	100,780		$	247,443		$	200,211
Capital structuring service fees	8,762			12,371			21,527			26,694
Dividend income	4,081			5,601			7,912			13,577
Other income	3,606			2,854			6,100			9,902
Total investment income from non-controlled/non-affiliate company investments	139,065			121,606			282,982			250,384
From non-controlled affiliate company investments:
Interest income from investments	4,724			3,295			7,319			6,195
Capital structuring service fees	2,205			—			2,205			650
Dividend income	744			826			1,369			3,498
Other income	68			76			130			403
Total investment income from non-controlled affiliate company investments	7,741			4,197			11,023			10,746
From controlled affiliate company investments:
Interest income from investments	73,932			72,075			145,166			143,268
Capital structuring service fees	12,115			9,361			19,531			15,286
Dividend income	10,000			10,322			30,099			30,400
Management and other fees	6,235			6,078			12,273			12,030
Other income	391			1,288			1,652			2,532
Total investment income from controlled affiliate company investments	102,673			99,124			208,721			203,516
Total investment income	249,479			224,927			502,726			464,646
EXPENSES:
Interest and credit facility fees	56,421			53,151			114,996			105,644
Base management fees	33,021			30,731			66,937			60,815
Income based fees	28,949			25,540			58,314			53,858
Capital gain incentive fees	7,682			10,168			3,462			11,103
Administrative fees	3,514			2,813			6,970			6,556
Other general and administrative	8,773			7,610			15,726			14,040
Total expenses	138,360			130,013			266,405			252,016
NET INVESTMENT INCOME BEFORE INCOME TAXES	111,119			94,914			236,321			212,630
Income tax expense, including excise tax	2,616			2,923			6,141			8,303
NET INVESTMENT INCOME	108,503			91,991			230,180			204,327
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gains (losses):
Non-controlled/non-affiliate company investments	24,910			519			51,804			10,667
Non-controlled affiliate company investments	—			—			333			38
Controlled affiliate company investments	—			(47,956		)	—			(46,188		)
Foreign currency transactions	(662		)	(1,080		)	3,865			(917		)
Net realized gains (losses)	24,248			(48,517		)	56,002			(36,400		)
Net unrealized gains (losses):
Non-controlled/non-affiliate company investments	10,683			13,031			(23,728		)	9,786
Non-controlled affiliate company investments	10,812			31,955			16,396			47,046
Controlled affiliate company investments	(7,752		)	54,630			(26,615		)	35,410
Foreign currency transactions	28			(259		)	(1,298		)	(274		)
Net unrealized gains (losses)	13,771			99,357			(35,245		)	91,968
Net realized and unrealized gains (losses) from investments and foreign currency transactions	38,019			50,840			20,757			55,568
REALIZED LOSSES ON EXTINGUISHMENT OF DEBT	—			—			(3,839		)	(72		)
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS	$	146,522		$	142,831		$	247,098		$	259,823
BASIC AND DILUTED EARNINGS PER COMMON SHARE (see Note 10)	$	0.47		$	0.48		$	0.79		$	0.87
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (see Note 10)	314,469			298,270			314,289			298,122

See accompanying notes to consolidated financial statements.

4

ARES CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of June 30, 2015

(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
CIC Flex, LP (10)	Investment partnership	Limited partnership units (0.94 units)		9/7/2007	$	—	$	248	(2)
Covestia Capital Partners, LP (10)	Investment partnership	Limited partnership interest (47.00% interest)		6/17/2008	487		1,863		(2)
HCI Equity, LLC (8)(9)(10)	Investment company	Member interest (100.00% interest)		4/1/2010	—		128
Imperial Capital Private Opportunities, LP (10)(29)	Investment partnership	Limited partnership interest (80.00% interest)		5/10/2007	4,214		20,380		(2)
Partnership Capital Growth Fund I, L.P. (10)	Investment partnership	Limited partnership interest (25.00% interest)		6/16/2006	—		873		(2)
Partnership Capital Growth Investors III, L.P. (10)(29)	Investment partnership	Limited partnership interest (2.50% interest)		10/5/2011	2,722		2,861		(2)
PCG-Ares Sidecar Investment, L.P. (10)(29)	Investment partnership	Limited partnership interest (100.00% interest)		5/22/2014	6,500		8,042		(2)
PCG-Ares Sidecar Investment II, L.P. (10)(29)	Investment partnership	Limited partnership interest (100.00% interest)		10/31/2014	2,147		1,279		(2)
Piper Jaffray Merchant Banking Fund I, L.P. (10)(29)	Investment partnership	Limited partnership interest (2.00% interest)		8/16/2012	1,240		1,342		(2)
Senior Secured Loan Fund LLC (8)(11)(30)	Co-investment vehicle	Subordinated certificates ($2,089,348 par due 12/2024)	8.27% (Libor + 8.00%/M)(24)	10/30/2009	2,089,348		2,099,796
		Member interest (87.50% interest)		10/30/2009	—		—
					2,089,348		2,099,796
VSC Investors LLC (10)	Investment company	Membership interest (1.95% interest)		1/24/2008	879		1,661		(2)
					2,107,537		2,138,473			40.48	%
Healthcare Services
Alegeus Technologies Holdings Corp.	Benefits administration and transaction processing provider	Preferred stock (2,997 shares)		12/13/2013	3,087		1,913
		Common stock (3 shares)		12/13/2013	3		—
					3,090		1,913
American Academy Holdings, LLC	Provider of education, training, certification, networking, and consulting services to medical coders and other healthcare professionals	First lien senior secured loan ($8,810 par due 6/2019)	7.00% (Libor + 6.00%/Q)	6/27/2014	8,810		8,810		(2)(20)(23)
		First lien senior secured loan ($52,039 par due 6/2019)	7.00% (Libor + 6.00%/Q)	6/27/2014	52,039		52,039		(3)(20)(23)
		First lien senior secured loan ($3,540 par due 6/2019)	4.00% (Libor + 3.00%/Q)	6/27/2014	3,540		3,540		(4)(23)
					64,389		64,389
AwarePoint Corporation	Healthcare technology platform developer	First lien senior secured loan ($10,000 par due 6/2018)	9.50%	9/5/2014	9,920		9,900		(2)
		Warrant to purchase up to 3,213,367 shares of Series 1 preferred stock		11/14/2014	—		609		(2)
					9,920		10,509
AxelaCare Holdings, Inc. and AxelaCare Investment Holdings, L.P.	Provider of home infusion services	Preferred units (8,664,072 units)		4/12/2013	866		726		(2)
		Common units (87,514 units)		4/12/2013	17		7		(2)
					883		733
California Forensic Medical Group, Incorporated (28)	Correctional facility healthcare operator	First lien senior secured loan ($44,707 par due 11/2018)	9.25% (Libor + 8.00%/Q)	11/16/2012	44,707		44,707		(3)(23)

5

As of June 30, 2015

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
CCS Intermediate Holdings, LLC and CCS Group Holdings, LLC (28)	Correctional facility healthcare operator	First lien senior secured revolving loan ($2,625 par due 7/2019)	6.25% (Base Rate + 3.00%/Q)	7/23/2014	2,625	2,572	(2)(23)
		First lien senior secured loan ($6,685 par due 7/2021)	5.00% (Libor + 4.00%/Q)	7/23/2014	6,657	6,551	(2)(23)
		Second lien senior secured loan ($135,000 par due 7/2022)	9.38% (Libor + 8.38%/Q)	7/23/2014	133,805	129,600	(2)(23)
		Class A units (601,937 units)		8/19/2010	—	1,023	(2)
					143,087	139,746
DNAnexus, Inc.	Bioinformatics company	First lien senior secured loan ($10,500 par due 10/2018)	9.25% (Libor + 8.25%/M)	3/21/2014	10,151	10,500	(2)(23)
		Warrant to purchase up to 909,092 units of Series C preferred stock		3/21/2014	—	347	(2)
					10,151	10,847
Global Healthcare Exchange, LLC and GHX Ultimate Parent Corp. (28)	On-demand supply chain automation solutions provider	First lien senior secured loan ($220,118 par due 3/2020)	8.50% (Libor + 7.50%/Q)	3/11/2014	218,762	220,118	(2)(23)
		First lien senior secured loan ($9,975 par due 3/2020)	8.50% (Libor + 7.50%/Q)	3/11/2014	9,873	9,975	(4)(23)
		Class A common stock (2,991 shares)		3/11/2014	2,991	2,991	(2)
		Class B common stock (980 shares)		3/11/2014	30	3,027	(2)
					231,656	236,111
Greenphire, Inc. and RMCF III CIV XXIX, L.P (28)	Software provider for clinical trial management	First lien senior secured loan ($4,000 par due 12/2018)	9.00% (Libor + 8.00%/M)	12/19/2014	4,000	4,000	(2)(23)
		Limited partnership interest (99.90% interest)		12/19/2014	999	999	(2)
					4,999	4,999
INC Research Mezzanine Co-Invest, LLC	Pharmaceutical and biotechnology consulting services	Common units (1,410,000 units)		9/27/2010	255	4,994	(2)
Intermedix Corporation	Revenue cycle management provider to the emergency healthcare industry	Second lien senior secured loan ($112,000 par due 6/2020)	9.25% (Libor + 8.25%/Q)	12/27/2012	112,000	110,880	(2)(23)
LM Acquisition Holdings, LLC (9)	Developer and manufacturer of medical equipment	Class A units (426 units)		9/27/2013	660	1,610	(2)
MC Acquisition Holdings I, LLC	Healthcare professional provider	Class A units (1,338,314 shares)		1/17/2014	1,338	1,756	(2)
Monte Nido Holdings, LLC	Outpatient eating disorder treatment provider	First lien senior secured loan ($44,750 par due 12/2019)	8.50% (Libor + 7.50%/Q)	12/20/2013	44,750	44,302	(3)(16)(23)
MW Dental Holding Corp. (28)	Dental services provider	First lien senior secured revolving loan ($2,000 par due 4/2017)	8.50% (Libor + 7.00%/M)	4/12/2011	2,000	2,000	(2)(23)
		First lien senior secured loan ($13,094 par due 4/2017)	8.50% (Libor + 7.00%/M)	4/12/2011	13,094	13,094	(2)(23)
		First lien senior secured loan ($24,358 par due 4/2017)	8.50% (Libor + 7.00%/M)	4/12/2011	24,358	24,358	(2)(23)
		First lien senior secured loan ($47,990 par due 4/2017)	8.50% (Libor + 7.00%/M)	4/12/2011	47,990	47,990	(3)(23)
		First lien senior secured loan ($19,846 par due 4/2017)	8.50% (Libor + 7.00%/M)	4/12/2011	19,846	19,846	(4)(23)
					107,288	107,288
My Health Direct, Inc. (28)	Healthcare scheduling exchange software solution provider	First lien senior secured loan ($3,000 par due 1/2018)	10.75%	9/18/2014	2,924	3,000	(2)
		Warrant to purchase up to 4,548 shares of Series D preferred stock		9/18/2014	39	39	(2)
					2,963	3,039
Napa Management Services Corporation	Anesthesia management services provider	First lien senior secured loan ($36,734 par due 2/2019)	9.61% (Libor + 8.61%/Q)	4/15/2011	36,734	36,734	(2)(23)
		First lien senior secured loan ($33,266 par due 2/2019)	9.61% (Libor + 8.61%/Q)	4/15/2011	33,221	33,266	(3)(23)
		Common units (5,345 units)		4/15/2011	5,764	12,558	(2)
					75,719	82,558
Netsmart Technologies, Inc. and NS Holdings, Inc.	Healthcare technology provider	Second lien senior secured loan ($90,000 par due 8/2019)	10.50% (Libor + 9.50%/Q)	2/27/2015	90,000	90,000	(2)(23)

6

As of June 30, 2015

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
		Common stock (2,500,000 shares)		6/21/2010	760	2,970	(2)
					90,760	92,970
New Trident Holdcorp, Inc.	Outsourced mobile diagnostic healthcare service provider	Second lien senior secured loan ($80,000 par due 7/2020)	10.25% (Libor + 9.00%/Q)	8/6/2013	78,785	76,000	(2)(23)
Nodality, Inc.	Biotechnology company	First lien senior secured loan ($7,680 par due 2/2018)	8.90%	4/25/2014	7,494	7,680	(2)
		First lien senior secured loan ($3,000 par due 8/2018)	8.90%	4/25/2014	2,916	3,000	(2)
		Warrant to purchase up to 164,179 shares of Series B preferred stock		4/25/2014	—	41	(2)
					10,410	10,721
OmniSYS Acquisition Corporation, OmniSYS, LLC, and OSYS Holdings, LLC (28)	Provider of technology-enabled solutions to pharmacies	First lien senior secured loan ($19,456 par due 11/2018)	8.50% (Libor + 7.50%/Q)	11/21/2013	19,456	19,456	(2)(23)
		Limited liability company membership interest (1.57)%		11/21/2013	1,000	1,238	(2)
					20,456	20,694
PerfectServe, Inc. (28)	Communications software platform provider for hospitals and physician practices	First lien senior secured revolving loan ($1,500 par due 6/2016)	7.50%	12/26/2013	1,500	1,500	(2)
		First lien senior secured loan ($2,408 par due 10/2017)	10.00%	12/26/2013	2,392	2,408	(2)
		First lien senior secured loan ($2,855 par due 4/2017)	10.00%	12/26/2013	2,840	2,855	(2)
		Warrant to purchase up to 34,113 units of Series C preferred stock		12/26/2013	—	106	(2)
					6,732	6,869
PhyMED Management LLC	Provider of anesthesia services	First lien senior secured loan ($9,950 par due 11/2020)	5.25% (Libor + 4.25%/M)	11/18/2014	9,887	9,950	(2)(23)
Physiotherapy Associates Holdings, Inc.	Physical therapy provider	Class A common stock (100,000 shares)		12/31/2013	3,090	4,665
POS I Corp. (fka Vantage Oncology, Inc.)	Radiation oncology care provider	Common stock (62,157 shares)		2/3/2011	4,670	1,043	(2)
Press Ganey Holdings, Inc.	Provider of patient surveys, management reports and national databases for the integrated healthcare delivery system	Common stock (47,987 shares)		5/27/2015	292	1,381	(2)
Reed Group Holdings, LLC	Medical disability management services provider	Equity interests		4/1/2010	—	—	(2)
Respicardia, Inc.	Developer of implantable therapies to improve cardiovascular health	Warrant to purchase up to 99,094 shares of Series C preferred stock		6/28/2012	38	28	(2)
Sage Products Holdings III, LLC	Patient infection control and preventive care solutions provider	Second lien senior secured loan ($108,679 par due 6/2020)	9.25% (Libor + 8.00%/Q)	12/13/2012	108,494	108,679	(2)(23)
Sarnova HC, LLC, Tri-Anim Health Services, Inc., and BEMS Holdings, LLC	Distributor of emergency medical service and respiratory products	Second lien senior secured loan ($60,000 par due 9/2018)	8.75% (Libor + 8.00%/M)	6/30/2014	60,000	60,000	(2)(23)
SurgiQuest, Inc.	Medical device company	Warrant to purchase up to 54,672 shares of Series D-4 convertible preferred stock		9/28/2012	—	—	(2)
Transaction Data Systems, Inc.	Pharmacy management software provider	Second lien senior secured loan ($27,500 par due 6/2022)	9.25% (Libor + 8.25%/M)	6/15/2015	27,500	27,500	(2)(23)
U.S. Anesthesia Partners, Inc.	Anesthesiology service provider	Second lien senior secured loan ($50,000 par due 9/2020)	9.00% (Libor + 8.00%/Q)	9/24/2014	50,000	50,000	(2)(23)
Urgent Cares of America Holdings I, LLC	Operator of urgent care clinics	Preferred units (6,000,000 units)		6/11/2015	6,000	6,000	(2)
		Series A common units (2,000,000 units)		6/11/2015	2,000	1,830	(2)
		Series C common units (800,507 units)		6/11/2015	—	612	(2)
					8,000	8,442
Young Innovations, Inc.	Dental supplies and equipment manufacturer	Second lien senior secured loan ($45,000 par due 7/2019)	9.00% (Libor + 8.00%/Q)	5/30/2014	45,000	45,000	(2)(23)
					1,381,969	1,394,323		26.40	%

7

As of June 30, 2015

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
Other Services
American Residential Services L.L.C.	Heating, ventilation and air conditioning services provider	Second lien senior secured loan ($50,000 par due 12/2021)	9.00% (Libor + 8.00%/Q)	6/30/2014	49,567	50,000	(2)(23)
Community Education Centers, Inc. and CEC Parent Holdings LLC (8)	Offender re-entry and in-prison treatment services provider	First lien senior secured loan ($13,657 par due 12/2017)	6.25% (Libor + 5.25%/Q)	12/10/2010	13,657	13,657	(2)(13)(23)
		First lien senior secured loan ($629 par due 12/2017)	7.50% (Base Rate + 4.25%/Q)	12/10/2010	629	629	(2)(13)(23)
		Second lien senior secured loan ($21,985 par due 6/2018)	15.28% (Libor + 15.00%/Q)	12/10/2010	21,895	21,895	(2)
		Class A senior preferred units (7,846 units)		3/27/2015	9,384	8,445	(2)
		Class A junior preferred units (26,154 units)		3/27/2015	19,833	12,437	(2)
		Class A common units (134 units)		3/27/2015	—	—	(2)
					65,398	57,063
Competitor Group, Inc. and Calera XVI, LLC (28)	Endurance sports media and event operator	First lien senior secured revolving loan ($3,750 par due 11/2018)	9.00% (Libor + 7.75%/Q)	11/30/2012	3,750	3,375	(2)(23)
		First lien senior secured loan ($24,506 par due 11/2018)	10.50% (Libor + 7.75% Cash, 1.50% PIK /Q)	11/30/2012	24,506	22,055	(2)(23)
		First lien senior secured loan ($30,007 par due 11/2018)	10.50% (Libor + 7.75% Cash, 1.50% PIK /Q)	11/30/2012	30,007	27,006	(3)(23)
		Membership units (2,500,000 units)		11/30/2012	2,523	198	(2)(10)
					60,786	52,634
Crown Health Care Laundry Services, Inc. and Crown Laundry Holdings, LLC (7)(28)	Provider of outsourced healthcare linen management solutions	First lien senior secured revolving loan		3/13/2014	—	—	(2)(25)
		First lien senior secured loan ($24,194 par due 3/2019)	7.75% (Libor + 6.50%/Q)	3/13/2014	24,194	24,194	(2)(23)
		Class A preferred units (2,475,000 units)		3/13/2014	2,475	3,592	(2)
		Class B common units (275,000 units)		3/13/2014	275	399	(2)
					26,944	28,185
Dwyer Acquisition Parent, Inc. and TDG Group Holding Company	Operator of multiple franchise concepts primarily related to home maintenance or repairs	Senior subordinated loan ($52,670 par due 2/2020)	11.00%	8/15/2014	52,670	52,670	(2)
		Senior subordinated loan ($31,500 par due 2/2020)	11.00%	6/12/2015	31,500	31,500	(2)
		Common stock (32,843 shares)		8/15/2014	3,378	3,797	(2)
					87,548	87,967
Massage Envy, LLC (28)	Franchisor in the massage industry	First lien senior secured loan ($8,017 par due 9/2018)	8.50% (Libor + 7.25%/Q)	9/27/2012	8,017	8,017	(2)(23)
		First lien senior secured loan ($46,434 par due 9/2018)	8.50% (Libor + 7.25%/Q)	9/27/2012	46,434	46,434	(3)(23)
		First lien senior secured loan ($19,469 par due 9/2018)	8.50% (Libor + 7.25%/Q)	9/27/2012	19,469	19,469	(4)(23)
		Common stock (3,000,000 shares)		9/27/2012	3,000	4,742
					76,920	78,662
McKenzie Sports Products, LLC (28)	Designer, manufacturer and distributor of hunting-related supplies	First lien senior secured loan ($84,500 par due 9/2020)	6.75% (Libor + 5.75%/M)	9/18/2014	84,500	84,500	(2)(14)(23)
OpenSky Project, Inc.	Social commerce platform operator	First lien senior secured loan ($2,700 par due 9/2017)	15.00%	6/4/2014	2,671	2,565	(2)
		First lien senior secured loan ($200 par due 9/2017)	17.50%	6/4/2014	198	190	(2)
		Warrant to purchase up to 159,496 shares of Series D preferred stock		6/29/2015	48	—	(2)
					2,917	2,755
PODS, LLC	Storage and warehousing	Second lien senior secured loan ($17,500 par due 2/2023)	9.25% (Libor + 8.25%/Q)	2/2/2015	17,332	17,500	(2)(23)
Spin HoldCo Inc.	Laundry service and equipment provider	Second lien senior secured loan ($140,000 par due 5/2020)	8.00% (Libor + 7.00%/M)	5/14/2013	140,000	138,600	(2)(23)
Surface Dive, Inc.	SCUBA diver training and certification provider	Second lien senior secured loan ($72,000 par due 1/2022)	10.25% (Libor + 9.25%/Q)	1/29/2015	71,580	72,000	(2)(23)

8

As of June 30, 2015

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
TWH Water Treatment Industries, Inc., TWH Filtration Industries, Inc. and TWH Infrastructure Industries, Inc. (28)	Wastewater infrastructure repair, treatment and filtration holding company	First lien senior secured loan ($2,240 par due 10/2019)	10.25% (Libor + 9.25%/Q)	10/10/2014	2,240	2,240	(2)(23)
		First lien senior secured loan ($36,400 par due 10/2019)	10.25% (Libor + 9.25%/Q)	10/10/2014	36,400	36,400	(3)(23)
					38,640	38,640
United Road Towing, Inc.	Towing company	Warrant to purchase up to 607 shares		4/1/2010	—	—
Wash Multifamily Acquisition Inc. and Coinmatic Canada Inc.	Laundry service and equipment provider	Second lien senior secured loan ($3,726 par due 5/2023)	8.00% (Libor + 7.00%/M)	5/14/2015	3,652	3,726	(2)(23)
		Second lien senior secured loan ($21,274 par due 5/2023)	8.00% (Libor + 7.00%/M)	5/14/2015	20,853	21,274	(2)(23)
					24,505	25,000
					746,637	733,506		13.89	%
Consumer Products
Feradyne Outdoors, LLC and Bowhunter Holdings, LLC	Provider of branded archery and bowhunting accessories	First lien senior secured loan ($13,500 par due 3/2019)	4.00% (Libor + 3.00%/Q)	4/24/2014	13,500	13,500	(2)(23)
		First lien senior secured loan ($25,500 par due 3/2019)	6.55% (Libor + 5.55%/Q)	4/24/2014	25,500	25,500	(2)(19)(23)
		First lien senior secured loan ($6,742 par due 3/2019)	4.00% (Libor + 3.00%/Q)	4/24/2014	6,742	6,742	(2)(23)
		First lien senior secured loan ($50,100 par due 3/2019)	6.55% (Libor + 5.55%/Q)	4/24/2014	50,100	50,100	(2)(19)(23)
		Common units (373 units)		4/24/2014	3,733	4,228	(2)
					99,575	100,070
Implus Footcare, LLC	Provider of footwear and other accessories	First lien senior secured loan ($20,000 par due 4/2021)	7.00% (Libor + 6.00%/Q)	4/30/2015	19,888	20,000	(2)(23)
Indra Holdings Corp.	Designer, marketer, and distributor of rain and cold weather products	Second lien senior secured loan ($80,000 par due 11/2021)	8.50% (Libor + 7.50%/Q)	5/1/2014	78,900	76,800	(2)(23)
Matrixx Initiatives, Inc. and Wonder Holdings Acquisition Corp.	Developer and marketer of OTC healthcare products	Warrant to purchase up to 1,489 shares of preferred stock		7/27/2011	—	1,289	(2)
		Warrant to purchase up to 1,654,678 shares of common stock		7/27/2011	—	86	(2)
					—	1,375
Oak Parent, Inc.	Manufacturer of athletic apparel	First lien senior secured loan ($2,631 par due 4/2018)	7.50% (Libor + 7.00%/Q)	4/2/2012	2,627	2,631	(3)(23)
		First lien senior secured loan ($8,377 par due 4/2018)	7.50% (Libor + 7.00%/Q)	4/2/2012	8,358	8,377	(4)(23)
					10,985	11,008
PG-ACP Co-Invest, LLC	Supplier of medical uniforms, specialized medical footwear and accessories	Class A membership units (1,000,0000 units)		8/29/2012	1,000	1,388	(2)
Plantation Products, LLC, Seed Holdings, Inc. and Flora Parent, Inc.	Provider of branded lawn and garden products	Second lien senior secured loan ($66,000 par due 6/2021)	9.94% (Libor + 8.94%/Q)	12/23/2014	65,651	66,000	(2)(23)
		Common stock (30,000 shares)		12/23/2014	3,000	3,773	(2)
					68,651	69,773
Shock Doctor, Inc. and Shock Doctor Holdings, LLC (7)	Developer, marketer and distributor of sports protection equipment and accessories	Second lien senior secured loan ($75,000 par due 10/2021)	11.50% (Libor + 10.50%/Q)	4/22/2015	75,000	75,000	(2)(23)
		Class A preferred units (50,000 units)		3/14/2014	5,000	5,350	(2)
		Class C preferred units (50,000 units)		4/22/2015	5,000	5,350	(2)
					85,000	85,700
The Hygenic Corporation	Designer, manufacturer and marketer of branded wellness products	Second lien senior secured loan ($70,000 par due 4/2021)	9.75% (Libor + 8.75%/Q)	2/27/2015	70,000	70,000	(2)(23)
The Step2 Company, LLC (8)	Toy manufacturer	Second lien senior secured loan ($27,583 par due 9/2019)	10.00%	4/1/2010	27,473	27,583	(2)
		Second lien senior secured loan ($4,500 par due 9/2019)	10.00%	3/13/2014	4,500	4,500	(2)

9

As of June 30, 2015

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value		Percentage of Net Assets
		Second lien senior secured loan ($40,082 par due 9/2019)		4/1/2010	30,802	12,005	(2)(22)
		Common units (1,116,879 units)		4/1/2011	24	—
		Class B common units (126,278,000 units)		10/30/2014	—	—	(2)
		Warrant to purchase up to 3,157,895 units		4/1/2010	—	—
					62,799	44,088
Varsity Brands Holding Co., Inc., Hercules Achievement, Inc., Hercules Achievement Holdings, Inc. and Hercules VB Holdings, Inc.	Leading manufacturer and distributor of textiles, apparel & luxury goods	Second lien senior secured loan ($91,697 par due 12/2022)	9.75% (Libor + 8.75%/Q)	12/11/2014	90,843	91,697	(2)(23)
		Second lien senior secured loan ($55,576 par due 12/2022)	9.75% (Libor + 8.75%/Q)	12/11/2014	55,056	55,576	(2)(23)
		Common stock (3,353,371 shares)		12/11/2014	4,147	4,906	(2)
		Common stock (3,353,371 shares)		12/11/2014	3,353	3,967	(2)
					153,399	156,146
					650,197	636,348		12.05	%
Business Services
2329497 Ontario Inc. (9)	Outsourced data center infrastructure and related services provider	Second lien senior secured loan ($42,480 par due 6/2019)	10.50% (Libor + 9.25%/M)	12/13/2013	43,211	31,705	(2)(23)
BlackArrow, Inc.	Advertising and data solutions software platform provider	First lien senior secured loan ($6,545 par due 9/2017)	9.25%	3/13/2014	6,402	6,545	(2)
		Warrant to purchase up to 517,386 units of Series C preferred stock		3/13/2014	—	—	(2)
					6,402	6,545
Brandtone Holdings Limited (9)(28)	Mobile communications and marketing services provider	First lien senior secured loan ($5,674 par due 11/2018)	9.50% (Libor + 8.50%/M)	5/11/2015	5,508	5,674	(2)(23)
		Warrant to purchase up to 115,002 units of Series Three participating convertible preferred ordinary shares		5/11/2015	—	1	(2)
					5,508	5,675
CallMiner, Inc.	Provider of cloud-based conversational analytics solutions	First lien senior secured loan ($4,000 par due 5/2018)	10.00%	7/23/2014	3,977	4,000	(2)
		First lien senior secured loan ($2,000 par due 9/2018)	10.00%	7/23/2014	1,988	2,000	(2)
		Warrant to purchase up to 2,350,636 shares of Series 1 preferred stock		7/23/2014	—	—	(2)
					5,965	6,000
Cast & Crew Payroll, LLC and Centerstage Co-Investors, L.L.C. (7)	Payroll and accounting services provider to the entertainment industry	First lien senior secured loan ($45,069 par due 10/2019)	7.00% (Libor + 6.00%/Q)	12/24/2012	45,069	45,069	(2)(18)(23)
		First lien senior secured loan ($41,813 par due 10/2019)	7.00% (Libor + 6.00%/Q)	12/24/2012	41,813	41,813	(3)(18)(23)
		Class A membership units (2,500,000 units)		12/24/2012	57	14,687	(2)
		Class B membership units (2,500,000 units)		12/24/2012	57	14,687	(2)
					86,996	116,256
CIBT Investment Holdings, LLC	Expedited travel document processing services	Class A shares (2,500 shares)		12/15/2011	2,500	4,411	(2)
Command Alkon, Incorporated and CA Note Issuer, LLC	Software solutions provider to the ready-mix concrete industry	Second lien senior secured loan ($10,000 par due 8/2020)	9.25% (Libor + 8.25%/Q)	9/28/2012	10,000	10,000	(2)(23)
		Second lien senior secured loan ($26,500 par due 8/2020)	9.25% (Libor + 8.25%/Q)	9/28/2012	26,500	26,500	(2)(23)
		Second lien senior secured loan ($11,500 par due 8/2020)	9.25% (Libor + 8.25%/Q)	9/28/2012	11,500	11,500	(2)(23)
		Senior subordinated loan ($18,909 par due 8/2021)	14.00% PIK	8/8/2014	18,909	18,909	(2)
					66,909	66,909
Compuware Parent, LLC	Web and mobile cloud performance testing and monitoring services provider	Class A-1 common stock (4,132 units)		12/15/2014	2,250	2,527	(2)

10

As of June 30, 2015

(dollar amounts in thousands)

(unaudited)

Company(1)	Business Description	Investment	Interest(5)(11)	Acquisition Date	Amortized Cost	Fair Value	Percentage of Net Assets
		Class B-1 common stock (4,132 units)		12/15/2014