UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

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

For the quarterly period ended March 31, 2025

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

For the transition period from to

Commission File No. 814-00735

Portman Ridge Finance Corporation

(Exact name of Registrant as specified in its charter)

Delaware	20-5951150
(State or other jurisdiction of Incorporation or organization)	(I.R.S. Employer Identification Number)

650 Madison Avenue, 3rd Floor

New York, New York 10022

(Address of principal executive offices)

(212) 891-2880

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	PTMN	The NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. 

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

The number of outstanding shares of common stock of the registrant as of May 2, 2025 was 9,202,870.

TABLE OF CONTENTS

		Page
	Part I. Financial Information
Item 1.	Financial Statements	4
	Consolidated Statements of Assets and Liabilities as of March 31, 2025 (unaudited) and December 31, 2024	4
	Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 (unaudited)	5
	Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2025 and 2024 (unaudited)	6
	Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)	7
	Consolidated Schedules of Investments as of March 31, 2025 (unaudited) and December 31, 2024	8
	Consolidated Financial Highlights for the three months ended March 31, 2025 and 2024 (unaudited)	16
	Notes to Consolidated Financial Statements as of and for the period ended March 31, 2025 (unaudited)	17
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	53
	Part II. Other Information
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 3.	Defaults Upon Senior Securities	55
Item 4.	Mine Safety Disclosures	55
Item 5.	Other Information	55
Item 6.	Exhibits	55
Signatures		56

2

NOTE ABOUT REFERENCES TO PORTMAN RIDGE FINANCE CORPORATION

In this Quarterly Report on Form 10-Q, the “Company”, “Portman Ridge”, “we”, “us” and “our” refer to Portman Ridge Finance Corporation and its wholly-owned subsidiaries, unless the context otherwise requires.

NOTE ABOUT FORWARD-LOOKING STATEMENTS

The information contained in this item should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report and in conjunction with the financial statements and notes thereto in the Company’s Form 10-K for the year ended December 31, 2024, as filed with the U.S. Securities and Exchange Commission (the “Commission” or the “SEC”). In addition, some of the statements in this report constitute forward-looking statements. The matters discussed in this Quarterly Report, as well as in future oral and written statements by management of Portman Ridge Finance Corporation, that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “outlook, ”believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Important assumptions include our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly Report should not be regarded as a representation by us that our plans or objectives will be achieved. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

•our ability to consummate the merger with Logan Ridge Finance Corporation (“LRFC”) on the expected timeline, or at all;

•our future operating results;

•our business prospects and the prospects of our existing and prospective portfolio companies;

•the return or impact of current and future investments;

•our contractual arrangements and other relationships with third parties;

•the dependence of our future success on the general economy and its impact on the industries in which we invest;

•the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives;

•our expected financings and investments;

•our ability to operate as a business development company (“BDC”) under the Investment Company Act of 1940 and a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, including the impact of changes in laws or regulations governing our operations or the operations of our portfolio companies;

•the adequacy of our available liquidity, cash resources and working capital;

•the timing of cash flows, if any, from the operations of our portfolio companies;

•the ability of Sierra Crest Investment Management LLC (the “Adviser”) to locate suitable investments for us to monitor and administer our investments;

•the ability of the Adviser to attract and retain highly talented professionals;

•actual and potential conflicts of interest with the Adviser and its affiliates;

•the effect of legal, tax, and regulatory changes on us and our portfolio companies;

•the impact of a protracted decline in the liquidity of credit markets on our business;

•the impact of fluctuations in interest rates on our business;

•the valuation of our investments in portfolio companies, particularly those having no liquid trading market;

•our ability to recover unrealized losses;

•market conditions and our ability to access additional capital;

•an economic downturn could have a material adverse effect on our portfolio companies’ results of operations and financial condition, which could lead to a loss on some or all of our investments in such portfolio companies and have a material adverse effect on our results of operations and financial condition;

•the timing, form and amount of any dividend distributions; and

•risks related to certain mergers diverting management’s attention from ongoing business operations.

For a more detailed discussion of factors that could cause our actual results to differ from forward-looking statements contained in this Quarterly Report, please see the discussion in Part II, “Item 1A. Risk Factors” of this Quarterly Report, and in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. You should not place undue reliance on these forward-looking statements. The forward-looking statements made in this Quarterly Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date this Quarterly Report is filed with the SEC.

3

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except share and per share amounts)

	March 31, 2025			December 31, 2024
	(Unaudited)
ASSETS
Investments at fair value:
Non-controlled/non-affiliated investments (amortized cost of $365,539 and $358,153, respectively)	$	333,519		$	327,622
Non-controlled affiliated investments (amortized cost of $67,137 and $68,858, respectively)		61,523			64,384
Controlled affiliated investments (amortized cost of $49,061 and $49,421, respectively)		11,381			13,015
Total Investments at fair value (amortized cost of $481,737 and $476,432, respectively)	$	406,423		$	405,021
Cash and cash equivalents		9,233			17,532
Restricted cash		14,278			22,421
Interest receivable		4,787			6,088
Dividend receivable		1,247			1,367
Other assets		2,812			1,205
Total Assets	$	438,780		$	453,634
LIABILITIES
4.875% Notes Due 2026 (net of deferred financing costs and original issue discount of $832 and $1,017, respectively)	$	107,168		$	106,983
Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of deferred financing costs of $1,198 and $1,322, respectively)		146,181			158,157
Accounts payable, accrued expenses and other liabilities		4,900			3,007
Accrued interest payable		4,634			3,646
Due to affiliates		—			635
Management and incentive fees payable		2,386			2,713
Total Liabilities	$	265,269		$	275,141
COMMITMENTS AND CONTINGENCIES (NOTE 8)
NET ASSETS
Common stock, par value $0.01 per share, 20,000,000 common shares authorized; 9,965,480 issued, and 9,202,870 outstanding at March 31, 2025, and 9,960,785 issued, and 9,198,175 outstanding at December 31, 2024	$	92		$	92
Capital in excess of par value		714,398			714,331
Total distributable (loss) earnings		(540,979	)		(535,930	)
Total Net Assets	$	173,511		$	178,493
Total Liabilities and Net Assets	$	438,780		$	453,634
Net Asset Value Per Common Share	$	18.85		$	19.41

See accompanying notes to unaudited consolidated financial statements.

4

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(Unaudited)

	For the Three Months Ended March 31,
	2025			2024
INVESTMENT INCOME
Interest income:
Non-controlled/non-affiliated investments	$	7,300		$	12,621
Non-controlled affiliated investments		316			95
Total interest income		7,616			12,716
Payment-in-kind income:
Non-controlled/non-affiliated investments(1)		2,853			1,894
Non-controlled affiliated investments		208			112
Total payment-in-kind income		3,061			2,006
Dividend income:
Non-controlled affiliated investments		1,417			1,653
Total dividend income		1,417			1,653
Fees and other income:
Non-controlled/non-affiliated investments		24			151
Total fees and other income		24			151
Total investment income		12,118			16,526
EXPENSES
Management fees		1,466			1,729
Performance-based incentive fees		920			1,234
Interest and amortization of debt issuance costs		4,298			5,725
Professional fees		452			604
Administrative services expense		411			356
Directors' expense		144			162
Other general and administrative expenses		87			490
Total expenses		7,778			10,300
NET INVESTMENT INCOME		4,340			6,226
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) from investment transactions:
Non-controlled/non-affiliated investments		(81	)		(1,641	)
Non-controlled affiliated investments		(92	)		—
Controlled affiliated investments		—			(416	)
Net realized gain (loss) on investments		(173	)		(2,057	)
Net change in unrealized appreciation (depreciation) on:
Non-controlled/non-affiliated investments		(1,501	)		(659	)
Non-controlled affiliated investments		(1,140	)		140
Controlled affiliated investments		(1,274	)		590
Derivatives		12			—
Net change in unrealized gain (loss) on investments		(3,903	)		71
Tax (provision) benefit on realized and unrealized gains (losses) on investments		(346	)		459
Net realized and unrealized appreciation (depreciation) on investments, net of taxes		(4,422	)		(1,527	)
Net realized gain (loss) on extinguishment of debt		—			(213	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(82	)	$	4,486
Net Increase (Decrease) In Net Assets Resulting from Operations per Common Share:
Basic and Diluted:	$	(0.01	)	$	0.48
Net Investment Income Per Common Share:
Basic and Diluted:	$	0.47		$	0.67
Weighted Average Shares of Common Stock Outstanding — Basic and Diluted		9,198,223			9,344,994

(1)During the three months ended March 31, 2025 and 2024, the Company received $0.2 million and $0.1 million, respectively, of non-recurring fee income that was paid in-kind and included in this financial statement line item.

See accompanying notes to unaudited consolidated financial statements.

5

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS(1)

(in thousands, except share and per share amounts)

(Unaudited)

	For the Three Months Ended March 31,
	2025			2024
Operations:
Net investment income	$	4,340		$	6,226
Net realized gain (loss) on investments		(173	)		(2,057	)
Net realized gain (loss) from extinguishment of debt		—			(213	)
Net change in unrealized appreciation (depreciation) on investments		(3,903	)		71
Tax (provision) benefit on realized and unrealized gains (losses) on investments		(346	)		459
Net increase (decrease) in net assets resulting from operations	$	(82	)	$	4,486
Stockholder distributions:
Distributions declared	$	(4,967	)	$	(6,444	)
Net decrease in net assets resulting from stockholder distributions	$	(4,967	)	$	(6,444	)
Capital share transactions:
Stock issued under dividend reinvestment plan	$	67		$	—
Stock repurchases		—			(953	)
Net increase (decrease) in net assets resulting from capital share transactions	$	67		$	(953	)
Net assets at beginning of period	$	178,493		$	213,518
Net assets at end of period	$	173,511		$	210,607
Net asset value per common share	$	18.85		$	22.57
Common shares outstanding at end of period		9,202,870			9,332,117

(1)Refer to Note 9 “Stockholders' Equity” for additional information on changes in components of Stockholders' Equity.

See accompanying notes to unaudited consolidated financial statements.

6

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except share and per share amounts)

(Unaudited)

	For the Three Months Ended March 31,
	2025			2024
OPERATING ACTIVITIES:
Net increase (decrease) in net assets resulting from operations	$	(82	)	$	4,486
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operations:
Net realized (gain) loss on investments		173			2,057
Net change in unrealized (appreciation) depreciation on investments		3,903			(71	)
Tax provision (benefit) on realized and unrealized gains (losses) on investments		346			(459	)
Purchases of investments		(17,504	)		(37,188	)
Proceeds from sales and redemptions of investments		15,660			35,481
Net accretion of investments		(777	)		(1,276	)
Amortization of debt issuance costs		309			273
Net realized (gain) loss on extinguishment of debt		—			213
Payment-in-kind income		(2,857	)		(1,894	)
Change in operating assets and liabilities:
(Increase) decrease in receivable for unsettled trades		—			(668	)
(Increase) decrease in interest receivable		1,301			27
(Increase) decrease in dividend receivable		120			195
(Increase) decrease in other assets		(1,607	)		(401	)
Increase (decrease) in payable for unsettled trades		—			8,224
Increase (decrease) in accrued interest payable		988			965
Increase (decrease) in management and incentive fees payable		(327	)		(1,119	)
Increase (decrease) in due to affiliates		(635	)		442
Increase (decrease) in accounts payable and accrued expenses		1,547			104
Net cash provided by (used in) operating activities	$	558		$	9,391
FINANCING ACTIVITIES:
Stock repurchase program	$	—			(953	)
Distributions to stockholders		(4,900	)		—
Distribution paid in advance to the transfer agent		—			(6,366	)
Repayment of 2018-2 Secured Notes		—			(34,032	)
Repayment of Revolving Credit Facilities		(12,100	)		—
Net cash provided by (used in) financing activities	$	(17,000	)	$	(41,351	)
CHANGE IN CASH AND RESTRICTED CASH	$	(16,442	)	$	(31,960	)
CASH AND RESTRICTED CASH, BEGINNING OF PERIOD		39,953			71,564
CASH AND RESTRICTED CASH, END OF PERIOD	$	23,511		$	39,604
Amounts per consolidated statements of assets and liabilities:
Cash and cash equivalents	$	9,233		$	20,829
Restricted cash		14,278			18,775
Total Cash and Restricted cash	$	23,511		$	39,604
Supplemental Information and non-cash activities:
Cash paid for interest during the period	$	3,001		$	4,487
Reinvestment of distributions	$	67		$	—

See accompanying notes to unaudited consolidated financial statements.

7

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of March 31, 2025

(in thousands, except share and per share amounts)

(Unaudited)

Investment (2), (4), (12), (14), (23), (24)	Industry	Interest Rate (1)	Reference Rate and Spread (1)	Floor (1)	Maturity	Par/Shares (++)		Cost			Fair Value			Footnotes
Investments in Non-Control, Non-Affiliate Portfolio Companies - 192.2%
First Lien/Senior Secured Debt - 165.2%
Accordion Partners LLC	Finance	9.55%	SOFR + 5.25%	0.75%	11/17/31		4,610	$	4,585		$	4,610		(13)(20)
Accordion Partners LLC (Revolver)	Finance	—	SOFR + 5.25%	0.75%	11/17/31		—		(8	)		—		(15)(20)
Accurate Background, LLC	Services: Business	10.56%	SOFR + 6.00%	1.00%	03/26/29		4,356		4,177			4,321		(13)
Advantage Capital Holdings LLC	Banking, Finance, Insurance & Real Estate	13.00%	13.00%, 5.00% PIK	—	04/14/27		15,127		15,128			14,143		(13)
AIDC IntermediateCo 2, LLC (Peak Technologies)	Services: Business	9.82%	SOFR + 5.50%	1.00%	07/22/27		978		969			966		(13)
AMCP Pet Holdings, Inc.	Beverage, Food and Tobacco	11.44%	SOFR + 7.00%, 3.00% PIK	1.00%	10/06/26		4,887		4,855			4,800		(13)
AMCP Pet Holdings, Inc. (Revolver)	Beverage, Food and Tobacco	11.45%	SOFR + 7.00%, 3.00% PIK	1.00%	10/06/26		1,017		1,012			999
American Academy Holdings, LLC	Healthcare & Pharmaceuticals	14.19%	SOFR + 9.75%, 5.25% PIK	1.00%	06/30/27		3,968		3,962			4,196		(13)
Ancile Solutions, Inc.	High Tech Industries	14.56%	SOFR + 10.00%	1.00%	06/11/26		5,969		5,929			5,969		(13)
Anthem Sports & Entertainment Inc.	Media: Broadcasting & Subscription	14.06%	SOFR + 9.50%, 11.06% PIK	1.00%	11/15/26		14,857		14,767			8,413		(13)
Anthem Sports & Entertainment Inc. (Delayed Draw Term Loan)	Media: Broadcasting & Subscription	11.58%	SOFR + 7.00%, 11.58% PIK	1.00%	04/06/25		920		920			920		(20)
Anthem Sports & Entertainment Inc. (Revolver)	Media: Broadcasting & Subscription	14.06%	SOFR + 9.50%, 11.06% PIK	1.00%	11/15/26		1,256		1,247			675		(20)
Anthem Sports & Entertainment Inc. (Revolver 2022)	Media: Broadcasting & Subscription	14.09%	SOFR + 9.50%, 11.09% PIK	1.00%	06/30/24		563		563			319
Appfire Technologies, LLC	High Tech Industries	9.30%	SOFR + 5.00%	1.00%	03/09/28		5,817		5,813			5,801		(13)
BetaNXT, Inc.	Banking, Finance, Insurance & Real Estate	10.05%	SOFR + 5.75%	—	07/01/29		12,448		11,956			11,969		(13)
BetaNXT, Inc. (Revolver)	Banking, Finance, Insurance & Real Estate	8.80%	SOFR + 4.50%	—	07/01/27		1,425		1,425			1,332		(20)
Bradshaw International Parent Corp.	Consumer goods: Durable	10.17%	SOFR + 5.75%	1.00%	10/21/27		490		484			486		(13)
Bradshaw International Parent Corp. (Revolver)	Consumer goods: Durable	—	SOFR + 5.75%	1.00%	10/21/26		—		(23	)		(7	)	(15)(20)
C.P. Converters, Inc.	Chemicals, Plastics and Rubber	12.06%	SOFR + 7.75%, 12.06% PIK	—	12/13/25		11,084		11,084			10,530		(13)
CB MIDCO, LLC	Consumer goods: Durable	10.17%	SOFR + 5.75%	1.00%	09/27/27		3,752		3,736			3,007		(13)
CCMG Buyer, LLC (Care Connectors Medical Group)	Healthcare & Pharmaceuticals	9.82%	SOFR + 5.50%	1.00%	05/08/30		3,143		3,110			3,143		(13)
CCMG Buyer, LLC (Care Connectors Medical Group) (Revolver)	Healthcare & Pharmaceuticals	—	SOFR + 5.50%	1.00%	05/08/30		—		(5	)		—		(15)(20)
Cenexel Clinical Research, Inc.	Healthcare & Pharmaceuticals	10.19%	SOFR + 5.75%	1.00%	11/08/28		5,759		5,745			5,753		(13)
Centric Brands Inc.	Machinery (Non-Agrclt/Constr/Electr)	9.80%	SOFR + 5.50%	1.00%	08/06/29		3,689		3,689			3,689		(13)
Centric Brands Inc. (Term Loan A1)	Machinery (Non-Agrclt/Constr/Electr)	10.80%	SOFR + 6.50%	1.00%	02/06/31		3,115		3,115			3,115		(13)
Centric Brands Inc. (Term Loan A2)	Machinery (Non-Agrclt/Constr/Electr)	12.30%	SOFR + 8.00%, 12.30% PIK	1.00%	02/06/31		3,574		3,574			3,574
Colonnade Intermediate, LLC	Services: Business	—	—	1.00%	04/27/24		7,167		7,167			5,132		(5)
Colonnade Intermediate, LLC (Revolver)	Services: Business	—	—	1.00%	04/27/24		685		685			491		(5)
Datalink, LLC	Healthcare & Pharmaceuticals	11.69%	SOFR + 7.25%	1.00%	11/23/26		2,622		2,602			1,855		(13)
Dentive, LLC	Healthcare & Pharmaceuticals	11.05%	SOFR + 6.75%	0.75%	12/26/28		2,732		2,690			2,688		(13)(20)
Dentive, LLC (Revolver)	Healthcare & Pharmaceuticals	11.05%	SOFR + 6.75%	0.75%	12/23/28		187		183			184		(20)
Dodge Data & Analytics LLC	Construction & Building	10.72%	SOFR + 6.25%	0.50%	01/31/29		658		650			650		(13)
Dodge Data & Analytics LLC (Second Out)	Construction & Building	9.22%	SOFR + 4.75%	0.50%	02/28/29		912		787			775		(13)
Florida Food Products, LLC	Beverage, Food and Tobacco	9.49%	SOFR + 5.00%	0.75%	10/18/28		6,805		6,707			5,778		(13)
Franchise Group, Inc.	Retail	9.30%	SOFR + 4.75%	0.75%	03/10/26		1,839		1,837			781		(13)
Franchise Group, Inc. (DIP)	Retail	13.44%	SOFR + 9.00%	1.00%	05/06/25		595		586			594		(20)
Franchise Group, Inc. (Roll-up)	Retail	9.19%	SOFR + 4.75%	0.75%	05/06/25		1,164		1,162			1,171		(13)
Fulcrum US Holdings, Inc. (Revolver)	IT Consulting & Other Services	13.50%	P + 6.00%	—	05/20/25		2,000		2,000			2,000
Global Integrated Flooring Systems Inc.	Consumer goods: Durable	13.67%	SOFR + 9.36%, 1.00% PIK	—	06/30/25		6,301		5,603			3,572
Global Integrated Flooring Systems Inc. (Revolver)	Consumer goods: Durable	12.69%	SOFR + 9.36%, 1.00% PIK	—	06/30/25		51		45			29
H.W. Lochner, Inc.	Services: Business	10.69%	SOFR + 6.25%	1.00%	07/02/27		17,475		17,310			17,474		(13)
H-CA II, LLC	Banking, Finance, Insurance & Real Estate	16.00%	—	—	09/01/25		1,650		1,650			1,491
HDC/HW Intermediate Holdings, LLC - Term Loan A	High Tech Industries	8.75%	SOFR + 3.50%, 2.50% PIK	5.25%	06/21/26		5,597		5,065			4,463
HDC/HW Intermediate Holdings, LLC - Term Loan B	High Tech Industries	—	—	—	06/21/26		3,876		940			—		(5)
Help Systems Holdings, Inc.	High Tech Industries	8.39%	SOFR + 4.00%	0.75%	11/19/26		1,949		1,878			1,789		(13)
IDC Infusion Services LLC	Healthcare & Pharmaceuticals	10.80%	SOFR + 6.50%	1.00%	07/07/28		3,824		3,770			3,840		(13)(20)
Ivanti Software, Inc.	High Tech Industries	8.82%	SOFR + 4.25%	0.75%	12/01/27		975		857			754		(13)
Keg Logistics LLC	Services: Business	11.22%	SOFR + 6.75%	1.00%	11/23/27		11,846		11,768			11,615		(13)
Keg Logistics LLC (Revolver)	Services: Business	10.65%	SOFR + 6.08%	1.00%	11/23/27		872		859			855
Lifescan Global Corporation	Healthcare & Pharmaceuticals	10.92%	SOFR + 6.50%	1.00%	12/31/26		2,083		2,020			1,344		(13)
Live Comfortably Inc.	Consumer goods: Durable	7.44%	SOFR + 3.00%	2.00%	09/20/27		6,239		6,038			6,082		(13)
MAG DS Corp.	Aerospace and Defense	9.90%	SOFR + 5.50%	1.00%	04/01/27		3,614		3,420			3,382		(13)
Money Transfer Acquisition Inc.	Finance	12.67%	SOFR + 8.25%	1.00%	12/14/27		8,520		8,422			8,343		(13)
Morae Global Corporation	IT Consulting & Other Services	12.45%	SOFR + 8.00%	2.00%	10/26/26		2,120		2,047			2,105		(13)
Morae Global Corporation (Revolver)	IT Consulting & Other Services	—	SOFR + 8.00%	2.00%	10/26/26		—		(6	)		(1	)	(15)(20)
MSM Acquisitions, Inc.	Services: Business	10.31%	SOFR + 6.00%, 2.50% PIK	1.00%	12/09/26		9,952		9,928			8,982		(13)
Neptune Bidco US Inc.	Media: Broadcasting & Subscription	9.39%	SOFR + 5.00%	0.50%	04/11/29		4,456		4,080			3,854		(13)
Neptune Bidco US Inc. - Term Loan A	Media: Broadcasting & Subscription	9.14%	SOFR + 4.75%		10/11/28		3,000		2,684			2,588		(13)
Netwrix Corporation	High Tech Industries	9.06%	SOFR + 4.75%	0.75%	06/09/29		4,238		4,223			4,202		(13)
Netwrix Corporation (Revolver)	High Tech Industries	—	SOFR + 5.00%	0.75%	06/09/29		—		(7	)		(10	)	(15)(20)
Newbury Franklin Industrials, LLC	Consumer goods: Durable	11.18%	SOFR + 7.00%	2.00%	12/11/29		4,003		3,895			3,878		(13)(20)
One Stop Mailing LLC	Transportation: Consumer	10.69%	SOFR + 6.25%	1.00%	04/29/27		7,450		7,396			7,459		(13)
PMA Parent Holdings LLC (Revolver)	Finance	—	SOFR + 5.25%	0.75%	01/31/31		—		(1	)		(1	)	(15)(20)
PMA Parent Holdings LLC	Finance	9.55%	SOFR + 5.25%	0.75%	01/31/31		1,401		1,380			1,382		(20)
PhyNet Dermatology LLC	Healthcare & Pharmaceuticals	10.79%	SOFR + 6.50%	1.00%	10/20/29		1,291		1,266			1,283		(13)(20)
Pomeroy Technologies, LLC (Super Senior A)	High Tech Industries	6.00% PIK	—	—	11/30/27		1,388		1,388			1,388

See accompanying notes to unaudited consolidated financial statements.

8

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - CONTINUED

As of March 31, 2025

(in thousands, except share and per share amounts)

(Unaudited)

Investment (2), (4), (12), (14), (23), (24)	Industry	Interest Rate (1)	Reference Rate and Spread (1)	Floor (1)	Maturity	Par/Shares (++)		Cost			Fair Value			Footnotes
Premier Imaging, LLC	Healthcare & Pharmaceuticals	10.56%	SOFR + 6.00%	1.00%	03/31/26		2,913	$	2,913		$	2,564		(13)
Project Castle, Inc.	Transportation: Cargo	9.76%	SOFR + 5.50%	0.50%	06/08/29		3,012		2,821			2,563		(13)
Project Leopard Holdings, Inc.	High Tech Industries	9.64%	SOFR + 5.25%	0.50%	07/20/29		5,680		5,437			4,938		(13)
PVHC Holding Corp	Containers, Packaging and Glass	11.20%	SOFR + 6.00%, 0.75% PIK	2.50%	02/17/27		2,728		2,727			2,703		(13)
Radius Aerospace, Inc.	Aerospace and Defense	10.45%	SOFR + 6.00%	1.00%	03/29/27		5,510		5,502			5,475		(13)
STG Distribution, LLC (STG Logistics) (Second Out)	Transportation: Cargo	11.92%	SOFR + 7.60%, 6.50% PIK	1.50%	10/03/29		1,806		1,088			768		(13)
STG Distribution, LLC (STG Logistics) (Third Out)	Transportation: Cargo	11.42%	SOFR + 7.10%, 6.00% PIK	1.50%	10/03/29		1,352		455			173		(13)
Riskonnect Parent LLC	Application Software	9.05%	SOFR + 4.75%	0.75%	12/07/28		1,213		1,164			1,162		(13)(20)
Red Range Intermediate Inc.	Capital Equipment	12.41%	SOFR + 8.00%	1.00%	10/01/29		324		324			324		(20)
South Street Securities Holdings, Inc	Banking, Finance, Insurance & Real Estate	9.00%	—	—	09/20/27		3,150		2,891			2,705
Sundance Holdings Group, LLC	Retail	—	—	—	06/30/25		6,536		6,511			3,905		(5)
Sundance Holdings Group, LLC (Priority PIK Term Loan)	Retail	13.96%	SOFR + 9.50%, 9.50% PIK	—	06/30/25		159		159			159
Symplr Software, Inc.	Healthcare & Pharmaceuticals	8.89%	SOFR + 4.50%	0.75%	12/22/27		1,649		1,647			1,438		(13)
Synamedia Americas Holdings, Inc.	Interactive Media & Services	10.80%	SOFR + 6.50%	1.00%	12/05/28		7,110		7,090			7,078		(13)
TA/WEG Holdings, LLC	Banking, Finance, Insurance & Real Estate	9.30%	SOFR + 5.00%	1.00%	10/02/28		5,019		5,014			5,019		(13)
TA/WEG Holdings, LLC (Revolver)	Banking, Finance, Insurance & Real Estate	—	SOFR + 5.00%	1.00%	10/02/28		—		(2	)		—		(15)(20)
Tactical Air Support, Inc.	Aerospace and Defense	12.94%	SOFR + 8.50%	1.00%	12/22/28		1,950		1,919			1,938		(13)(20)
Taoglas USA Holdings Inc.	High Tech Industries	11.55%	SOFR + 7.25%	1.00%	02/28/29		1,643		1,619			1,619		(13)
TLE Holdings, LLC	Healthcare, Education and Childcare	9.92%	SOFR + 5.50%	1.00%	06/29/26		6,099		6,098			6,099		(13)
VBC Spine Opco LLC (DxTx Pain and Spine LLC)	Healthcare & Pharmaceuticals	12.45%	SOFR + 8.00%	2.00%	06/14/28		4,019		3,957			3,986		(13)(20)
VBC Spine Opco LLC (DxTx Pain and Spine LLC) (Revolver)	Healthcare & Pharmaceuticals	—	SOFR + 8.00%	2.00%	06/14/28		—		(5	)		(3	)	(15)(20)
VTX Intermediate Holdings, Inc.	High Tech Industries	11.56%	SOFR + 7.00%, 1.00% PIK	2.00%	12/12/29		5,135		5,091			5,091		(13)
Total First Lien/Senior Secured Debt									311,203			286,668
Second Lien/Senior Secured Debt - 14.2%
American Academy Holdings, LLC	Healthcare & Pharmaceuticals	14.50% PIK	—	—	03/01/28		7,057		6,991			6,925
Confluence Technologies, Inc.	Services: Business	10.97%	SOFR + 6.50%	0.50%	07/23/29		4,000		3,982			3,369		(13)
Dcert Buyer, Inc.	High Tech Industries	11.32%	SOFR + 7.00%	—	02/16/29		5,400		5,393			4,415		(13)
Idera, Inc.	High Tech Industries	11.19%	SOFR + 6.75%	0.75%	02/04/29		2,024		2,014			1,810		(13)
Ivanti Software, Inc.	High Tech Industries	11.82%	SOFR + 7.25%	0.50%	12/01/28		6,000		5,974			2,845		(13)
Project Leopard Holdings, Inc.	High Tech Industries	12.04%	SOFR + 7.75%	0.50%	07/20/30		5,000		4,932			4,487		(13)
VTX Intermediate Holdings, Inc.	High Tech Industries	12.50% PIK	—	2.00%	12/12/30		878		861			855
Total Second Lien/Senior Secured Debt									30,147			24,706
Subordinated Debt - 1.0%
DeltaDx Limited, LP (Money Transfer Acquisition Inc.)	Finance	15.00% PIK	—	—	06/30/28		538		538			528
Lucky Bucks Holdings LLC	Hotel, Gaming & Leisure	—	—	—	05/29/28		6,258		5,565			1,212		(5)
Total Subordinated Debt									6,103			1,740
Collateralized Loan Obligations - 1.9%
Catamaran CLO 2014-1 Ltd.	CLO Fund Securities	415.72%	—	—	04/20/30		15,161		168			797		(3)(7)(10)
Catamaran CLO 2018-1 Ltd	CLO Fund Securities	18.85%	—	—	10/27/31		10,000		2,880			2,476		(3)(7)(10)
Dryden 30 Senior Loan Fund	CLO Fund Securities	5.30%	—	—	11/01/28		3,250		32			32		(3)(7)(10)
Total Collateralized Loan Obligations									3,080			3,305
Preferred Stock and Units - 4.3%
4L Ultimate Topco Corporation	Services: Business	—	—	—	—		321		29			—
AAPC Holdings, LLC	Healthcare & Pharmaceuticals	18.00% PIK	—	—	—		146,214		4			251		(22)(25)
Advantage Capital Holdings LLC	Banking, Finance, Insurance & Real Estate	12.50% PIK	—	—	—		2,880,830		2,881			2,881		(22)(25)
Aperture Dodge 18 LLC	Banking, Finance, Insurance & Real Estate	—	—	—	—		3,077,360		3,077			2,486
Epilog Partners SPV III, LLC (Care Connectors Medical Group)	Healthcare & Pharmaceuticals	—	—	—	—		1,179,466		1,179			1,467		(20)(22)
Prosper Marketplace	Consumer goods: Durable	—	—	—	—		912,865		279			324		(6)
Total Preferred Stock and Units									7,449			7,409
Common Stock and Membership Units - 5.5%
AAPC Holdings, LLC	Healthcare & Pharmaceuticals	—	—	—	—		0.07		—			447		(22)
Advantage Capital Holdings LLC - Class A Units	Banking, Finance, Insurance & Real Estate	—	—	—	—		822		500			843		(22)
Anthem Sports & Entertainment Inc. - Class A Warrant	Media: Broadcasting & Subscription	—	—	—	—		510		46			—
Anthem Sports & Entertainment Inc. - Class B Warrant	Media: Broadcasting & Subscription	—	—	—	—		88		—			—
Anthem Sports & Entertainment Inc. - Warrant for CS	Media: Broadcasting & Subscription	—	—	—	—		1,644		—			—
ATP Oil & Gas Corporation	Energy: Oil & Gas	—	—	—	—		0.1		—			—		(11)
Carestream Health Holdings, Inc.	Healthcare & Pharmaceuticals	—	—	—	—		4,099		53			130
Centric Brands, L.P.	Machinery (Non-Agrclt/Constr/Electr)	—	—	—	—		81,770		746			3,949
DxTx Pain and Spine LLC	Healthcare & Pharmaceuticals	—	—	—	—		158,166		258			347		(22)
Everyware Global, Inc.	Consumer goods: Durable	—	—	—	—		1,085,565		346			553		(16)
FP WRCA Coinvestment Fund VII, Ltd. - Class A	Capital Equipment	—	—	—	—		100		1,500			975		(3)(7)
Fusion Connect, Inc.	Telecommunications	—	—	—	—		14		866			—
Fusion Connect, Inc. - Warrant	Telecommunications	—	—	—	—		811,572		—			—
HDC/HW Holdings, LLC	High Tech Industries	—	—	—	—		148,826		—			—
LB NewHoldCo LLC	Hotel, Gaming & Leisure	—	—	—	—		96,523		1,441			993		(13)
Live Comfortably Inc.	Consumer goods: Durable						2,846		—			—		(13)
Morae Global Holdings Inc. - Warrant	IT Consulting & Other Services	—	—	—	—		1		87			118
Ohene Holdings B.V. - Warrant	High Tech Industries	—	—	—	—		4		—			—		(3)(7)

See accompanying notes to unaudited consolidated financial statements.

9

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - CONTINUED

As of March 31, 2025

(in thousands, except share and per share amounts)

(Unaudited)

Investment (2), (4), (12), (14), (23), (24)	Industry	Interest Rate (1)	Reference Rate and Spread (1)	Floor (1)	Maturity	Par/Shares (++)		Cost			Fair Value			Footnotes
Roscoe Investors, LLC - Class A	Healthcare & Pharmaceuticals	—	—	—	—		10,000	$	1,000		$	423
South Street Securities Holdings, Inc - Warrant	Banking, Finance, Insurance & Real Estate	—	—	—	—		3,966		455			440
Sundance Holdings Group, LLC	Retail	—	—	—	—		14,603		—			—
VTX Holdings LLC - Series C	High Tech Industries	—	—	—	—		441,252		—			13
Workplace Holdings LLC (Pomeroy Technologies, LLC)	High Tech Industries	—	—	—	—		950		228			228
World Business Lenders, LLC	Banking, Finance, Insurance & Real Estate	—	—	—	—		49,209		—			—		(7)
Total Common Stock and Membership Units									7,526			9,459
Derivatives - 0.1%(19)
Advantage Capital Holdings LLC	Banking, Finance, Insurance & Real Estate	—	—	—	—		164		—			232		(7)(22)
Epilog Partners LP (Care Connectors Medical Group)	Healthcare & Pharmaceuticals	—	—	—	—		1,166,667		—			—		(7)(22)
HDNet Holdco LLC (Anthem)	Media: Broadcasting & Subscription	—	—	—	—		0.2		31			—		(7)
Total Derivatives									31			232
Total Investments in Non-Control, Non-Affiliate Portfolio Companies									365,539			333,519
Investments in Affiliate Portfolio Companies - 35.4%(17)
First Lien/Senior Secured Debt - 4.4%
PMP OPCO, LLC (Princeton Medspa Partners, LLC)	Services: Consumer	12.82%	SOFR + 8.50%	2.00%	05/31/29		1,675		1,636			1,518		(13)(20)
PMP OPCO, LLC (Princeton Medspa Partners, LLC) (Revolver)	Services: Consumer	—	SOFR + 8.50%	2.00%	05/31/29		—		(3	)		(11	)	(15)(20)
Riddell, Inc.	Consumer goods: Durable	10.32%	SOFR + 6.00%	1.00%	03/29/29		6,205		6,117			6,204		(13)(20)
Total First Lien/Senior Secured Debt									7,750			7,711
Second Lien/Senior Secured Debt- 2.3%
Northeast Metal Works LLC	Metals & Mining	8.00%	—	—	04/05/28		4,500		4,500			3,518
Northeast Metal Works LLC	Metals & Mining	8.00%	—	—	01/01/25		500		500			500
Total Second Lien/Senior Secured Debt									5,000			4,018
Collateralized Loan Obligations - 0.8%
JMP Credit Advisors CLO IV LTD	CLO Fund Securities	—	—	—	07/17/29		18,407		1			615		(3)(7)(10)
JMP Credit Advisors CLO V LTD	CLO Fund Securities	—	—	—	07/17/30		17,074		719			719		(3)(7)(10)
Total Collateralized Loan Obligations									720			1,334
Joint Ventures- 22.5%
Series A-Great Lakes Funding II LLC	Joint Venture	—	—	—	—		40,805		40,805			39,110		(7)(20)(26)
Total Joint Ventures									40,805			39,110
Preferred Stock and Units - 3.4%
BMP Slappey Holdco, LLC	Telecommunications	—	—	—	—		200,000		467			576		(21)
BMP Slappey Investment II	Telecommunications	—	—	—	—		88,946		208			256		(21)
EBSC Holdings LLC (Riddell, Inc.)	Consumer goods: Durable	10.00% PIK	—	—	—		2,207		2,181			2,538		(25)
GreenPark Infrastructure, LLC - Series A	Energy: Electricity	—	—	—	—		1,000		500			500		(22)
Northeast Metal Works LLC - Preferred	Metals & Mining	—	—	—	—		2,368		—			—		(21)
Northeast Metal Works LLC - Class O Preferred	Metals & Mining	10.00% PIK	—	—	—		4,950,000		4,950			1,160		(21)(25)
Princeton Medspa Partners, LLC	Services: Consumer	12.50% PIK	—	—	—		1,096		1,096			799		(22)(25)
Total Preferred Stock and Units									9,402			5,829
Common Stock and Membership Units - 2.0%
GreenPark Infrastructure, LLC - Series M-1	Energy: Electricity	—	—	—	—		6,412		2,196			2,196		(20)(22)
Kleen-Tech Acquisition, LLC	Services: Business	—	—	—	—		250,000		1,264			1,305		(21)
Princeton Medspa Partners, LLC - Warrant	Services: Consumer	—	—	—	—		0.03		—			20		(22)
Total Common Stock and Membership Units									3,460			3,521
Derivatives - 0.0%(19)
Princeton Medspa Partners, LLC	Services: Consumer	—	—	—	—		1,000,000		—			—		(7)(22)
Total Derivatives									—			—
Total Investments in Affiliate Portfolio Companies									67,137			61,523
Investments in Controlled Afilliated Portfolio Companies - 6.6%(8)
Subordinated Debt - 0.0%
ProAir, LLC	Capital Equipment	—	—	—	01/31/23		2,020		1,931			—		(5)
Total Subordinated Debt									1,931			—
Common Stock and Membership Units - 0.0%
ProAir HoldCo, LLC	Capital Equipment	—	—	—	—		2,749,997		4,261			—
Total Common Stock and Membership Units									4,261			—
Joint Ventures - 6.6%
KCAP Freedom 3 LLC	Joint Venture	—	—	—	—		27,220		25,078			11,381		(7)
Total Joint Ventures									25,078			11,381
Asset Manager Affiliates - 0.0%
Asset Management Company	Asset Management Company	—	—	—	—		—		17,791			—		(7)
Total Asset Manager Affiliates									17,791			—
Total Investments in Controlled Affiliated Portfolio Companies									49,061			11,381
Total Investments - 234.2%								$	481,737		$	406,423

See accompanying notes to unaudited consolidated financial statements.

10

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - CONTINUED

As of March 31, 2025

(in thousands, except share and per share amounts)

(Unaudited)

(1)A majority of the variable rate loans in the Company’s investment portfolio bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate (“SOFR”) or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate (“P”)), which typically resets semi-annually, quarterly, or monthly at the borrower’s option. The Borrower may also elect to have multiple interest reset periods for each March 31, 2025 loan. SOFR loans are typically indexed to 12 month, 6 month, 3 month, 2 month or 1 month SOFR rates. For each such loan, the Company has provided the weighted average annual stated interest rate in effect at March 31, 2025. As noted in the table above, 84.2% (based on par) of debt securities with floating rates contain floors which range between 0.50% and 5.25%.

(2)Reflects the fair market value of all investments as of March 31, 2025 as determined in good faith using significant unobservable inputs by the Adviser in its role as “valuation designee” in accordance with Rule 2a-5 under the 1940 Act, pursuant to valuation policies and procedures that have been approved by the Company’s board of directors (the “Board”).

(3)Non-U.S. company or principal place of business outside the U.S.

(4)The aggregate cost of investments for federal income tax purposes is approximately $464.0 million. The aggregate gross unrealized appreciation is approximately $52.4 million, the aggregate gross unrealized depreciation is approximately $110.1 million, and the net unrealized depreciation is approximately $57.6 million.

(5)Loan or debt security is on non-accrual status and therefore is considered non-income producing.

(6)Held through Garrison Capital Equity Holdings II LLC and net of non-controlling member’s interest of 17.5% pursuant to the Amended and Restated Limited Liability Company Agreement of Garrison Capital Equity Holdings II LLC.

(7)The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of March 31, 2025, qualifying assets represent 87.1% of the Company's total assets and non-qualifying assets represent 12.9% of the Company's total assets.

(8)As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” and has “Control” of this portfolio company as the Company owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company.

(9)Not used.

(10)CLO Subordinated Investments are entitled to periodic distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund’s investments less contractual payments to debt holders and fund expenses. The estimated annualized effective yield indicated is based upon a current projection of the amount and timing of these distributions. Such projections are updated on a quarterly basis and the estimated effective yield is adjusted prospectively.

(11)This investment receives a 5% royalty interest on oil being produced on certain fields. All production payments received are being applied to the cost basis and are considered return of capital.

(12)All investments valued using unobservable inputs (Level III), unless otherwise noted.

(13)As of March 31, 2025, this investment is pledged to secure the Company’s debt obligations.

(14)The Company's investments are generally acquired in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) and, therefore, are generally subject to limitations on resale, and may be deemed to be “restricted securities” under the Securities Act of 1933.

(15)The negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.

(16)This investment is held by the Company's wholly-owned subsidiary Garrison Capital Equity Holdings XI LLC.

(17)Under the 1940 Act, the Company is deemed to be an “Affiliated Person” of, as defined in the 1940 Act, this portfolio company as the Company owns at least 5% of the portfolio company’s outstanding voting securities or is under common control with such portfolio company.

(18)Not used.

(19)Information related to the Company’s derivatives is presented below as of March 31, 2025:

($ in thousands)
Description	Counterparty	Number of shares		Notional amount		Exercise price		Expiration date	Value
Call option	HDNet Holdco LLC	0.2		$	8		0.01	N/A	$	—
Description	Counterparty	Number of shares		Notional amount		Exercise price		Expiration date	Value
Put option	Advantage Capital Holdings LLC		164	$	563		20	N/A	$	232
Put option	Epilog Partners LP (Care Connectors Medical Group)		1,166,667	$	—		—	N/A		—
Put option	Princeton Medspa Partners, LLC		1,000,000	$	1,000		2	N/A		—

(20)Debt security has an unfunded commitment in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 8 for additional information on the Company’s commitments and contingencies.

(21)This investment is owned by HCAP Equity Holdings, LLC, one of the Company’s taxable blocker subsidiaries.

(22)This investment is held by PTMN Sub Holdings LLC, one of the Company's taxable blocker subsidiaries.

(23)All debt investments are income producing, unless otherwise noted. Equity and warrant investments are non-income producing, unless otherwise noted.

(24)Percentages are based on net assets as of March 31, 2025.

(25)The equity investment is income producing.

(26)The investment is valued at the NAV of the underlying fund.

(++) Par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments.

See accompanying notes to unaudited consolidated financial statements.

11

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of December 31, 2024

(in thousands, except share and per share amounts)

Investment (2), (4), (12), (14), (23), (24)	Industry	Interest Rate (1)	Reference Rate and Spread (1)	Floor (1)	Maturity	Par/Shares (++)		Cost			Fair Value			Footnotes
Investments in Non-Control, Non-Affiliate Portfolio Companies - 183.5%
First Lien/Senior Secured Debt - 158.1%
Accordion Partners LLC	Finance	9.58%	SOFR + 5.25%	0.75%	11/17/31		4,464	$	4,437		$	4,436		(13)(20)
Accordion Partners LLC (Revolver)	Finance	—	SOFR + 5.25%	0.75%	11/17/31		—		(8	)		(8	)	(15)(20)
Accurate Background, LLC	Services: Business	10.59%	SOFR + 6.00%	1.00%	03/26/29		4,367		4,177			4,329		(13)
Advantage Capital Holdings LLC	Banking, Finance, Insurance & Real Estate	13.00%	13.00%, 5.00% PIK	—	04/14/27		14,754		14,752			13,649		(13)
AIDC IntermediateCo 2, LLC (Peak Technologies)	Services: Business	9.59%	SOFR + 5.25%	1.00%	07/22/27		980		971			979		(13)
AMCP Pet Holdings, Inc.	Beverage, Food and Tobacco	11.74%	SOFR + 7.00%, 3.00% PIK	1.00%	10/06/26		4,875		4,838			4,785		(13)
AMCP Pet Holdings, Inc. (Revolver)	Beverage, Food and Tobacco	11.80%	SOFR + 7.00%, 3.00% PIK	1.00%	10/06/26		1,012		1,006			994
American Academy Holdings, LLC	Healthcare & Pharmaceuticals	14.22%	SOFR + 9.75%, 5.25% PIK	1.00%	06/30/27		3,934		3,928			3,954		(13)
Ancile Solutions, Inc.	High Tech Industries	14.62%	SOFR + 10.00%	1.00%	06/11/26		6,034		5,985			6,035		(13)
Anthem Sports & Entertainment Inc.	Media: Broadcasting & Subscription	13.99%	SOFR + 9.40%, 13.99% PIK	1.00%	11/15/26		15,070		14,966			9,668		(13)(20)
Anthem Sports & Entertainment Inc. (Revolver)	Media: Broadcasting & Subscription	14.09%	SOFR + 9.50%, 3.00% PIK	1.00%	11/15/26		1,222		1,212			734		(20)
Anthem Sports & Entertainment Inc. (Revolver 2022)	Media: Broadcasting & Subscription	14.09%	SOFR + 9.50%, 3.00% PIK	1.00%	06/30/24		563		563			353
Appfire Technologies, LLC	High Tech Industries	9.33%	SOFR + 5.00%	1.00%	03/09/28		5,832		5,827			5,817		(13)
BetaNXT, Inc.	Banking, Finance, Insurance & Real Estate	10.08%	SOFR + 5.75%	—	07/01/29		12,480		11,958			11,997		(13)
BetaNXT, Inc. (Revolver)	Banking, Finance, Insurance & Real Estate	8.86%	SOFR + 4.50%	—	07/01/27		1,014		1,014			963		(20)
Bradshaw International Parent Corp.	Consumer goods: Durable	10.21%	SOFR + 5.75%	1.00%	10/21/27		491		485			487		(13)
Bradshaw International Parent Corp. (Revolver)	Consumer goods: Durable	—	SOFR + 5.75%	1.00%	10/21/26		—		(23	)		(8	)	(15)(20)
C.P. Converters, Inc.	Chemicals, Plastics and Rubber	13.16%	SOFR + 8.49%, 1.00% PIK	1.00%	12/13/25		10,135		10,135			9,628		(13)
CB MIDCO, LLC	Consumer goods: Durable	10.21%	SOFR + 5.75%	1.00%	09/27/27		3,762		3,745			3,414		(13)
CCMG Buyer, LLC (Care Connectors Medical Group)	Healthcare & Pharmaceuticals	9.90%	SOFR + 5.50%	1.00%	05/08/30		3,151		3,116			3,151		(13)
CCMG Buyer, LLC (Care Connectors Medical Group) (Revolver)	Healthcare & Pharmaceuticals	—	SOFR + 5.50%	1.00%	05/08/30		—		(6	)		—		(15)(20)
Cenexel Clinical Research, Inc.	Healthcare & Pharmaceuticals	10.47%	SOFR + 5.75%	1.00%	11/08/28		5,773		5,758			5,765		(13)
Centric Brands Inc.	Machinery (Non-Agrclt/Constr/Electr)	10.03%	SOFR + 5.50%	1.00%	08/06/29		3,689		3,689			3,689		(13)
Centric Brands Inc. (Term Loan A1)	Machinery (Non-Agrclt/Constr/Electr)	11.03%	SOFR + 6.50%	1.00%	02/06/31		3,807		3,807			3,807
Centric Brands Inc. (Term Loan A2)	Machinery (Non-Agrclt/Constr/Electr)	12.53%	SOFR + 8.00%, 12.53% PIK	1.00%	02/06/31		3,463		3,463			3,463
Colonnade Intermediate, LLC	Services: Business	—	—	1.00%	04/27/24		7,167		7,167			5,164		(5)
Colonnade Intermediate, LLC (Revolver)	Services: Business	—	—	1.00%	04/27/24		685		685			494		(5)
Datalink, LLC	Healthcare & Pharmaceuticals	11.49%	SOFR + 6.75%	1.00%	11/23/26		2,640		2,617			2,218		(13)
Dentive, LLC	Healthcare & Pharmaceuticals	11.08%	SOFR + 6.75%	0.75%	12/26/28		2,740		2,695			2,696		(13)(20)
Dentive, LLC (Revolver)	Healthcare & Pharmaceuticals	11.08%	SOFR + 6.75%	0.75%	12/23/28		117		112			114
Dodge Data & Analytics LLC	Construction & Building	10.92%	SOFR + 6.25%	0.50%	01/31/29		657		649			651		(13)
Dodge Data & Analytics LLC (Second Out)	Construction & Building	9.42%	SOFR + 4.75%	0.50%	02/28/29		917		783			779
Florida Food Products, LLC	Beverage, Food and Tobacco	9.52%	SOFR + 5.00%	0.75%	10/18/28		6,823		6,719			5,833		(13)
Fortis Payment Systems, LLC	Diversified Financial Services	9.68%	SOFR + 5.25%	1.00%	02/13/26		3,092		3,058			3,074		(13)(20)
Franchise Group, Inc.	Retail	10.39%	SOFR + 5.45%	0.75%	03/10/26		3,003		2,998			1,783		(13)
Franchise Group, Inc. (DIP)	Retail	13.55%	SOFR + 9.00%	1.00%	05/06/25		594		582			582		(13)
Global Integrated Flooring Systems Inc.	Consumer goods: Durable	13.96%	SOFR + 9.36%, 1.00% PIK	—	06/30/25		6,284		5,588			3,479
Global Integrated Flooring Systems Inc. (Revolver)	Consumer goods: Durable	13.72%	SOFR + 9.36%, 1.00% PIK	—	06/30/25		51		45			28
H.W. Lochner, Inc.	Services: Business	10.99%	SOFR + 6.25%	1.00%	07/02/27		14,513		14,391			14,513		(13)
H-CA II, LLC	Banking, Finance, Insurance & Real Estate	16.00%	—	—	09/01/25		1,724		1,724			1,560
HDC/HW Intermediate Holdings, LLC - Term Loan A	High Tech Industries	8.75%	SOFR + 3.50%, 2.50% PIK	5.25%	06/21/26		5,597		4,958			4,527
HDC/HW Intermediate Holdings, LLC - Term Loan B	High Tech Industries	—	—	—	06/21/26		3,876		940			—		(5)
Help Systems Holdings, Inc.	High Tech Industries	8.69%	SOFR + 4.00%	0.75%	11/19/26		1,954		1,873			1,728		(13)
Hollander Intermediate LLC	Consumer goods: Durable	13.22%	SOFR + 8.75%, 10.58% PIK	2.00%	09/19/26		6,330		5,852			6,235		(13)
IDC Infusion Services LLC	Healthcare & Pharmaceuticals	10.83%	SOFR + 6.50%	1.00%	07/07/28		3,833		3,776			3,853		(13)(20)
Ivanti Software, Inc.	High Tech Industries	9.12%	SOFR + 4.25%	0.75%	12/01/27		977		848			678		(13)
Keg Logistics LLC	Services: Business	10.67%	SOFR + 6.00%	1.00%	11/23/27		11,877		11,791			11,817		(13)
Keg Logistics LLC (Revolver)	Services: Business	10.68%	SOFR + 6.00%	1.00%	11/23/27		872		859			868
Lifescan Global Corporation	Healthcare & Pharmaceuticals	11.12%	SOFR + 6.50%	1.00%	12/31/26		2,165		2,090			758		(13)
Luminii LLC	Construction & Building	11.94%	SOFR + 7.35%	1.00%	04/11/25		5,873		5,873			5,827		(13)
Luminii LLC (Revolver)	Construction & Building	11.94%	SOFR + 7.35%	1.00%	04/11/25		343		343			339		(13)(20)
MAG DS Corp.	Aerospace and Defense	9.93%	SOFR + 5.50%	1.00%	04/01/27		3,624		3,406			3,406		(13)
Money Transfer Acquisition Inc.	Finance	12.71%	SOFR + 8.25%	1.00%	12/14/27		8,574		8,470			8,392		(13)
Morae Global Corporation	IT Consulting & Other Services	12.77%	SOFR + 8.00%	2.00%	10/26/26		2,163		2,077			2,129		(13)
Morae Global Corporation (Revolver)	IT Consulting & Other Services	—	SOFR + 8.00%	2.00%	10/26/26		—		(7	)		(3	)	(15)(20)
MSM Acquisitions, Inc.	Services: Business	10.51%	SOFR + 6.00%	1.00%	12/09/26		9,852		9,826			8,891		(13)
Neptune Bidco US Inc.	Media: Broadcasting & Subscription	9.76%	SOFR + 5.00%	0.50%	04/11/29		2,463		2,277			2,217		(13)
Netwrix Corporation	High Tech Industries	9.26%	SOFR + 4.75%	0.75%	06/09/29		4,248		4,233			4,212		(13)
Netwrix Corporation (Revolver)	High Tech Industries	—	SOFR + 5.00%	0.75%	06/09/29		—		(7	)		(10	)	(15)(20)
Newbury Franklin Industrials, LLC	Consumer goods: Durable	11.40%	SOFR + 7.00%	2.00%	12/11/29		4,013		3,899			3,898		(20)
One Stop Mailing LLC	Transportation: Consumer	10.72%	SOFR + 6.25%	1.00%	04/29/27		7,470		7,410			7,470		(13)
PMA Parent Holdings LLC (Revolver)	Finance	—	SOFR + 5.25%	0.75%	01/31/31		—		(2	)		(2	)	(15)
PMA Parent Holdings LLC	Finance	9.58%	SOFR + 5.25%	0.75%	01/31/31		1,401		1,380			1,379		(20)
PhyNet Dermatology LLC	Healthcare & Pharmaceuticals	11.12%	SOFR + 6.50%	1.00%	10/20/29		1,294		1,267			1,279		(20)
Pomeroy Technologies, LLC (Super Senior A)	High Tech Industries	6.00% PIK	—	—	11/30/27		1,367		1,367			1,367

See accompanying notes to unaudited consolidated financial statements.

12

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - CONTINUED

As of December 31, 2024

(in thousands, except share and per share amounts)

Investment (2), (4), (12), (14), (23), (24)	Industry	Interest Rate (1)	Reference Rate and Spread (1)	Floor (1)	Maturity	Par/Shares (++)		Cost			Fair Value		Footnotes
Premier Imaging, LLC	Healthcare & Pharmaceuticals	10.59%	SOFR + 6.00%, 10.59% PIK	1.00%	03/31/26		2,869	$	2,869		$	2,524	(13)
Project Castle, Inc.	Transportation: Cargo	9.76%	SOFR + 5.50%	0.50%	06/08/29		3,020		2,817			2,649	(13)
Project Leopard Holdings, Inc.	High Tech Industries	9.94%	SOFR + 5.25%	0.50%	07/20/29		5,695		5,436			5,126	(13)
PVHC Holding Corp	Containers, Packaging and Glass	11.18%	SOFR + 6.75%, 0.75% PIK	2.50%	02/17/27		2,729		2,728			2,702	(13)
Radius Aerospace, Inc.	Aerospace and Defense	10.48%	SOFR + 6.00%, 10.48% PIK	1.00%	03/29/27		6,066		6,056			6,026	(13)
STG Distribution, LLC (STG Logistics) (Second Out)	Transportation: Cargo	12.12%	SOFR + 7.60%, 6.50% PIK	1.50%	10/03/29		1,777		1,020			997	(13)
STG Distribution, LLC (STG Logistics) (Third Out)	Transportation: Cargo	11.62%	SOFR + 7.10%, 6.00% PIK	1.50%	10/03/29		1,332		386			136	(13)
Riskonnect Parent LLC	Application Software	9.48%	SOFR + 5.00%	—	12/07/28		1,216		1,165			1,166	(20)
Red Range Intermediate Inc.	Capital Equipment	12.69%	SOFR + 8.00%	1.00%	10/01/29		324		324			324	(13)(20)
South Street Securities Holdings, Inc	Banking, Finance, Insurance & Real Estate	9.00%	—	—	09/20/27		3,150		2,865			2,685
Sundance Holdings Group, LLC	Retail	14.23%	SOFR + 9.50%, 1.50% PIK	—	06/30/25		6,667		6,666			4,488
Symplr Software, Inc.	Healthcare & Pharmaceuticals	9.19%	SOFR + 4.50%	0.75%	12/22/27		1,653		1,651			1,517	(13)
Synamedia Americas Holdings, Inc.	Interactive Media & Services	12.11%	SOFR + 7.75%	1.00%	12/05/28		2,610		2,539			2,559	(13)
TA/WEG Holdings, LLC	Banking, Finance, Insurance & Real Estate	9.55%	SOFR + 5.00%	1.00%	10/02/28		5,032		5,053			5,032	(13)
TA/WEG Holdings, LLC (Revolver)	Banking, Finance, Insurance & Real Estate	—	SOFR + 5.00%	1.00%	10/02/28		—		(2	)		—	(15)(20)
Tactical Air Support, Inc.	Aerospace and Defense	13.25%	SOFR + 8.50%	1.00%	12/22/28		1,975		1,941			1,958	(13)(20)
TLE Holdings, LLC	Healthcare, Education and Childcare	9.96%	SOFR + 5.50%	1.00%	06/29/26		6,115		6,114			6,115	(13)
VBC Spine Opco LLC (DxTx Pain and Spine LLC)	Healthcare & Pharmaceuticals	12.79%	SOFR + 8.00%	2.00%	06/14/28		4,600		4,526			4,558	(20)
VBC Spine Opco LLC (DxTx Pain and Spine LLC) (Revolver)	Healthcare & Pharmaceuticals	12.69%	SOFR + 8.00%	2.00%	06/14/28		258		253			255	(20)
VTX Intermediate Holdings, Inc.	High Tech Industries	11.65%	SOFR + 7.00%, 1.00% PIK	2.00%	12/12/29		5,122		5,075			5,074
Total First Lien/Senior Secured Debt									303,889			282,195
Second Lien/Senior Secured Debt - 14.0%
American Academy Holdings, LLC	Healthcare & Pharmaceuticals	14.50% PIK	—	—	03/01/28		6,813		6,742			6,396
Confluence Technologies, Inc.	Services: Business	10.98%	SOFR + 6.50%	0.50%	07/23/29		4,000		3,981			3,301	(13)
Dcert Buyer, Inc.	High Tech Industries	11.36%	SOFR + 7.00%	—	02/16/29		5,400		5,393			4,558	(13)
Idera, Inc.	High Tech Industries	11.47%	SOFR + 6.75%	0.75%	02/04/29		2,024		2,014			1,992	(13)
Ivanti Software, Inc.	High Tech Industries	12.12%	SOFR + 7.25%	0.50%	12/01/28		6,000		5,972			3,458	(13)
Project Leopard Holdings, Inc.	High Tech Industries	12.34%	SOFR + 7.75%	0.50%	07/20/30		5,000		4,929			4,488
VTX Intermediate Holdings, Inc.	High Tech Industries	12.50% PIK	—	2.00%	12/12/30		878		861			860
Total Second Lien/Senior Secured Debt									29,892			25,053
Subordinated Debt - 1.0%
DeltaDx Limited, LP (Money Transfer Acquisition Inc.)	Finance	15.00% PIK	—	—	06/30/28		538		538			528
Lucky Bucks Holdings LLC	Hotel, Gaming & Leisure	—	—	—	05/29/28		6,258		5,565			1,212	(5)
TRSO II, Inc.	Energy: Oil & Gas	—	—	—	01/24/25		26		25			—	(5)
Total Subordinated Debt									6,128			1,740
Collateralized Loan Obligations - 1.7%
Catamaran CLO 2014-1 Ltd.	CLO Fund Securities	136.55%	—	—	04/20/30		15,161		126			261	(3)(7)(10)
Catamaran CLO 2018-1 Ltd	CLO Fund Securities	3.86%	—	—	10/27/31		10,000		3,063			2,600	(3)(7)(10)
Dryden 30 Senior Loan Fund	CLO Fund Securities	17.98%	—	—	11/01/28		3,250		141			140	(3)(7)(10)
Total Collateralized Loan Obligations									3,330			3,001
Preferred Stock and Units - 4.1%
4L Ultimate Topco Corporation	Services: Business	—	—	—	—		321		29			—
AAPC Holdings, LLC	Healthcare & Pharmaceuticals	18.00% PIK	—	—	—		146,214		4			243	(22)(25)
Advantage Capital Holdings LLC	Banking, Finance, Insurance & Real Estate	12.50% PIK	—	—	—		2,794,692		2,795			2,795	(22)(25)
Aperture Dodge 18 LLC	Banking, Finance, Insurance & Real Estate	—	—	—	—		3,077,360		3,077			2,662
Epilog Partners SPV III, LLC (Care Connectors Medical Group)	Healthcare & Pharmaceuticals	—	—	—	—		1,173,118		1,173			1,283	(20)(22)
Prosper Marketplace	Consumer goods: Durable	—	—	—	—		912,865		279			324	(6)
Total Preferred Stock and Units									7,357			7,307
Common Stock and Membership Units - 4.5%
AAPC Holdings, LLC	Healthcare & Pharmaceuticals	—	—	—	—		0.07		—			444	(22)
Advantage Capital Holdings LLC - Class A Units	Banking, Finance, Insurance & Real Estate	—	—	—	—		822		500			842	(22)
Anthem Sports & Entertainment Inc. - Class A Warrant	Media: Broadcasting & Subscription	—	—	—	—		510		46			—
Anthem Sports & Entertainment Inc. - Class B Warrant	Media: Broadcasting & Subscription	—	—	—	—		88		—			—
Anthem Sports & Entertainment Inc. - Warrant for CS	Media: Broadcasting & Subscription	—	—	—	—		1,644		—			—
ATP Oil & Gas Corporation	Energy: Oil & Gas	—	—	—	—		0.1		—			—	(11)
Carestream Health Holdings, Inc.	Healthcare & Pharmaceuticals	—	—	—	—		4,099		53			130
Centric Brands, L.P.	Machinery (Non-Agrclt/Constr/Electr)	—	—	—	—		81,770		746			2,649	(13)
DxTx Pain and Spine LLC	Healthcare & Pharmaceuticals	—	—	—	—		158,166		258			258	(22)
Everyware Global, Inc.	Consumer goods: Durable	—	—	—	—		1,085,565		346			553	(16)
FP WRCA Coinvestment Fund VII, Ltd. - Class A	Capital Equipment	—	—	—	—		100		1,500			967	(3)(7)
Fusion Connect, Inc.	Telecommunications	—	—	—	—		14		866			—	(13)
Fusion Connect, Inc. - Warrant	Telecommunications	—	—	—	—		811,572		—			—
HDC/HW Holdings, LLC	High Tech Industries	—	—	—	—		148,826		—			—
LB NewHoldCo LLC	Hotel, Gaming & Leisure	—	—	—	—		96,523		1,441			993	(13)
Morae Global Holdings Inc. - Warrant	IT Consulting & Other Services	—	—	—	—		1		87			117
Ohene Holdings B.V. - Warrant	High Tech Industries	—	—	—	—		4		—			—	(3)(7)

See accompanying notes to unaudited consolidated financial statements.

13

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - CONTINUED

As of December 31, 2024

(in thousands, except share and per share amounts)

Investment (2), (4), (12), (14), (23), (24)	Industry	Interest Rate (1)	Reference Rate and Spread (1)	Floor (1)	Maturity	Par/Shares (++)		Cost			Fair Value			Footnotes
Roscoe Investors, LLC - Class A	Healthcare & Pharmaceuticals	—	—	—	—		10,000	$	1,000		$	476
South Street Securities Holdings, Inc - Warrant	Banking, Finance, Insurance & Real Estate	—	—	—	—		3,966		455			449
Sundance Holdings Group, LLC	Retail	—	—	—	—		14,603		—			—
VTX Holdings LLC - Series C	High Tech Industries	—	—	—	—		441,252		—			—
Workplace Holdings LLC (Pomeroy Technologies, LLC)	High Tech Industries	—	—	—	—		950		228			228
World Business Lenders, LLC	Banking, Finance, Insurance & Real Estate	—	—	—	—		49,209		—			—		(7)
Total Common Stock and Membership Units									7,526			8,106
Derivatives - 0.0%(19)
Advantage Capital Holdings LLC	Banking, Finance, Insurance & Real Estate	—	—	—	—		164		—			220		(7)(22)
Epilog Partners LP (Care Connectors Medical Group)	Healthcare & Pharmaceuticals	—	—	—	—		1,166,667		—			—		(7)(22)
HDNet Holdco LLC (Anthem)	Media: Broadcasting & Subscription	—	—	—	—		0.2		31			—		(7)
Total Derivatives									31			220
Total Investments in Non-Control, Non-Affiliate Portfolio Companies									358,153			327,622
Investments in Affiliate Portfolio Companies - 36.1%(17)
First Lien/Senior Secured Debt - 4.3%
PMP OPCO, LLC (Princeton Medspa Partners, LLC)	Services: Consumer	12.86%	SOFR + 8.50%	2.00%	05/31/29		1,679		1,638			1,529		(13)(20)
PMP OPCO, LLC (Princeton Medspa Partners, LLC) (Revolver)	Services: Consumer	—	SOFR + 8.50%	2.00%	05/31/29		—		(3	)		(10	)	(15)(20)
Riddell, Inc.	Consumer goods: Durable	10.48%	SOFR + 6.00%	1.00%	03/29/29		6,244		6,149			6,243		(13)(20)
Total First Lien/Senior Secured Debt									7,784			7,762
Second Lien/Senior Secured Debt- 2.2%
Northeast Metal Works LLC	Metals & Mining	8.00%	—	—	04/05/28		4,500		4,500			3,443
Northeast Metal Works LLC	Metals & Mining	8.00%	—	—	01/01/25		500		500			500
Total Second Lien/Senior Secured Debt									5,000			3,943
Collateralized Loan Obligations - 1.2%
JMP Credit Advisors CLO IV LTD	CLO Fund Securities	—	—	—	07/17/29		18,407		521			725		(3)(7)(10)
JMP Credit Advisors CLO V LTD	CLO Fund Securities	—	—	—	07/17/30		17,074		1,467			1,467		(3)(7)(10)
Total Collateralized Loan Obligations									1,988			2,192
Joint Ventures- 23.0%
Series A-Great Lakes Funding II LLC	Joint Venture	—	—	—	—		41,309		41,309			41,138		(7)(20)(26)
Total Joint Ventures									41,309			41,138
Preferred Stock and Units - 3.2%
BMP Slappey Holdco, LLC	Telecommunications	—	—	—	—		200,000		467			557		(21)
BMP Slappey Investment II	Telecommunications	—	—	—	—		88,946		208			248		(21)
EBSC Holdings LLC (Riddell, Inc.)	Consumer goods: Durable	10.00% PIK	—	—	—		2,154		2,128			2,375		(25)
GreenPark Infrastructure, LLC - Series A	Energy: Electricity	—	—	—	—		1,000		500			500		(22)
Northeast Metal Works LLC - Preferred	Metals & Mining	—	—	—	—		2,368		—			—		(21)
Northeast Metal Works LLC - Class O Preferred	Metals & Mining	10.00% PIK	—	—	—		4,950,000		4,950			1,160		(21)(25)
Princeton Medspa Partners, LLC	Services: Consumer	12.50% PIK	—	—	—		1,064		1,064			859		(22)(25)
Total Preferred Stock and Units									9,317			5,699
Common Stock and Membership Units - 2.0%
GreenPark Infrastructure, LLC - Series M-1	Energy: Electricity	—	—	—	—		6,412		2,196			2,202		(20)(22)
Kleen-Tech Acquisition, LLC	Services: Business	—	—	—	—		250,000		1,264			1,420		(21)
Princeton Medspa Partners, LLC - Warrant	Services: Consumer	—	—	—	—		0.03		—			28		(22)
Total Common Stock and Membership Units									3,460			3,650
Derivatives - 0.0%(19)
Princeton Medspa Partners, LLC	Services: Consumer	—	—	—	—		1,000,000		—			—		(7)(22)
Total Derivatives									—			—
Total Investments in Affiliate Portfolio Companies									68,858			64,384
Investments in Controlled Afilliated Portfolio Companies - 7.3%(8)
Subordinated Debt - 0.0%
ProAir, LLC	Capital Equipment	—	—	—	01/31/23		2,020		1,931			—		(5)
Total Subordinated Debt									1,931			—
Common Stock and Membership Units - 0.0%
ProAir HoldCo, LLC	Capital Equipment	—	—	—	—		2,749,997		4,261			—
Total Common Stock and Membership Units									4,261			—
Joint Ventures - 7.3%
KCAP Freedom 3 LLC	Joint Venture	—	—	—	—		27,220		25,438			13,015		(7)
Total Joint Ventures									25,438			13,015
Asset Manager Affiliates - 0.0%
Asset Management Company	Asset Management Company	—	—	—	—		—		17,791			—		(7)
Total Asset Manager Affiliates									17,791			—
Total Investments in Controlled Affiliated Portfolio Companies									49,421			13,015
Total Investments - 226.9%								$	476,432		$	405,021

See accompanying notes to unaudited consolidated financial statements.

14

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - CONTINUED

As of December 31, 2024

(in thousands, except share and per share amounts)

(1)A majority of the variable rate loans in the Company’s investment portfolio bear interest at a rate that may be determined by reference to either SOFR or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), which typically resets semi-annually, quarterly, or monthly at the borrower’s option. The Borrower may also elect to have multiple interest reset periods for each December 31, 2024 loan. SOFR loans are typically indexed to 12 month, 6 month, 3 month, 2 month or 1 month SOFR rates. For each such loan, the Company has provided the weighted average annual stated interest rate in effect at December 31, 2024. As noted in the table above, 89.8% (based on par) of debt securities contain floors which range between 0.50% and 5.25%.

(2)Reflects the fair market value of all investments as of December 31, 2024 as determined in good faith using significant unobservable inputs by the Adviser in its role as “valuation designee” in accordance with Rule 2a-5 under the 1940 Act, pursuant to valuation policies and procedures that have been approved by the Company’s board of directors (the “Board”).

(3)Non-U.S. company or principal place of business outside the U.S.

(4)The aggregate cost of investments for federal income tax purposes is approximately $458.4 million. The aggregate gross unrealized appreciation is approximately $50.0 million, the aggregate gross unrealized depreciation is approximately $103.3 million, and the net unrealized depreciation is approximately $53.3 million.

(5)Loan or debt security is on non-accrual status and therefore is considered non-income producing.

(6)Held through Garrison Capital Equity Holdings II LLC and net of non-controlling member’s interest of 17.5% pursuant to the Amended and Restated Limited Liability Company Agreement of Garrison Capital Equity Holdings II LLC.

(7)The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of our total assets. As of December 31, 2024, qualifying assets represent 86.6% of the Company's total assets and non-qualifying assets represent 13.4% of the Company's total assets.

(8)As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” and has “Control” of this portfolio company as the Company owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company.

(9)Not used.

(10)CLO Fund Securities are entitled to periodic distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund’s investments less contractual payments to debt holders and fund expenses. The estimated annualized effective yield indicated is based upon a current projection of the amount and timing of these distributions. Such projections are updated on a quarterly basis and the estimated effective yield is adjusted prospectively.

(11)This investment receives a 5% royalty interest on oil being produced on certain fields. All production payments received are being applied to the cost basis and are considered return of capital.

(12)All investments valued using unobservable inputs (Level III), unless otherwise noted.

(13)As of December 31, 2024, this investment is pledged to secure the Company’s debt obligations.

(14)The Company's investments are generally acquired in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) and, therefore, are generally subject to limitations on resale, and may be deemed to be “restricted securities'' under the Securities Act of 1933.

(15)The negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.

(16)This investment is held by the Company's wholly-owned subsidiary Garrison Capital Equity Holdings XI LLC.

(17)Under the 1940 Act, the Company is deemed to be an “Affiliated Person” of, as defined in the 1940 Act, this portfolio company as the Company owns at least 5% of the portfolio company’s outstanding voting securities or is under common control with such portfolio company.

(18)Not used.

(19)Information related to the Company’s derivatives is presented below as of December 31, 2024:

($ in thousands)
Description	Counterparty	Number of shares		Notional amount		Exercise price		Expiration date	Value
Call option	HDNet Holdco LLC	0.2		$	8		0.01	N/A	$	—
Description	Counterparty	Number of shares		Notional amount		Exercise price		Expiration date	Value
Put option	Advantage Capital Holdings LLC		164	$	563		20	N/A	$	220
Put option	Epilog Partners LP (Care Connectors Medical Group)		1,166,667	$	—		—	N/A		—
Put option	Princeton Medspa Partners, LLC		1,000,000	$	1,000		2	N/A		—

(20)Security has an unfunded commitment in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 8 for additional information on the Company’s commitments and contingencies.

(21)This investment is owned by HCAP Equity Holdings, LLC, one of the Company’s taxable blocker subsidiaries.

(22)This investment is owned by PTMN Sub Holdings LLC, one of the Company’s taxable blocker subsidiaries.

(23)All debt investments are income producing, unless otherwise noted. Equity and warrant investments are non-income producing, unless otherwise noted.

(24)Percentages are based on net assets as of December 31, 2024.

(25)The equity investment is income producing, based on rate disclosed.

(26)The investment is held at the NAV of the underlying fund.

(++) Par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments.

See accompanying notes to unaudited consolidated financial statements.

15

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(in thousands, except share and per share amounts)

(Unaudited)

	For the Three Months Ended March 31,
	2025			2024(4)
Per Share Data:
Net asset value, at beginning of period	$	19.41		$	22.76
Net investment income(1)		0.47			0.67
Net realized gain (loss) from investments(1)		(0.02	)		(0.22	)
Net change in unrealized appreciation (depreciation) on investments(1)		(0.42	)		—
Tax (provision) benefit on realized and unrealized gains (losses) on investments(1)		(0.04	)		0.05
Realized gain (loss) from extinguishment of debt(1)		—			(0.02	)
Net increase (decrease) in net assets resulting from operations	$	(0.01	)	$	0.48
Net decrease in net assets resulting from distributions		(0.54	)		(0.69	)
Accretive effect of common stock repurchases(1)		—			0.02
Net increase (decrease) in net assets relating to stock-based transactions(6)		(0.01	)		—
Net asset value, end of period	$	18.85		$	22.57
Total net asset value return(2)		0.77	%		2.73	%
Total market return(3)		(8.87	)%		8.09	%
Ratio/Supplemental Data:
Per share market value at beginning of period	$	16.34		$	18.19
Per share market value at end of period	$	14.35		$	18.98
Shares outstanding at end of period		9,202,870			9,332,117
Net assets at end of period	$	173,511		$	210,607
Portfolio turnover rate(5)		3.86	%		7.55	%
Asset coverage ratio		167.94	%		171.26	%
Ratio of net investment income to average net assets (annualized)		10.00	%		11.81	%
Ratio of total expenses to average net assets (annualized)		17.92	%		19.53	%
Ratio of interest expense to average net assets (annualized)		9.90	%		10.83	%
Ratio of non-interest expenses to average net assets (annualized)		8.02	%		8.71	%

(1)Based on weighted average number of common shares outstanding-basic for the period.

(2)Total net asset value return (not annualized) equals the change in the net asset value per share over the period plus distributions (including any return of capital), divided by the beginning net asset value per share.

(3)Total market return (not annualized) equals the change in market price, per share during the period plus distributions, divided by the beginning market price per share.

(4)Totals may not sum due to rounding.

(5)Portfolio turnover rate equals the lesser of year-to-date sales and paydowns over the average of the invested assets at fair value.

(6)Includes the accretive (dilutive) effects of the share issuance (at net asset value or in accordance with the DRIP).

See accompanying notes to unaudited consolidated financial statements.

16

PORTMAN RIDGE FINANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2025
(Unaudited)

1. ORGANIZATION

Portman Ridge Finance Corporation (“Portman Ridge” or the “Company”), formerly known as KCAP Financial, Inc., is an externally managed, non-diversified closed-end investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company was formed as a Delaware limited liability company on August 8, 2006 and, prior to the issuance of shares of the Company’s common stock in its initial public offering (“IPO”), converted to a corporation incorporated in Delaware on December 11, 2006.

The Company originates, structures, and invests in secured term loans, bonds or notes and mezzanine debt primarily in privately-held middle market companies but may also invest in other investments such as loans to publicly-traded companies, high-yield bonds, and distressed debt securities (collectively the “Debt Securities Portfolio”). The Company also invests in debt and subordinated securities issued by collateralized loan obligation funds (“CLO Fund Securities”). In addition, from time to time the Company may invest in the equity securities of privately held middle market companies and may also receive warrants or options to purchase common stock in connection with its debt investments.

The Company has elected to be treated and intends to continue to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a RIC, the Company must, among other things, meet certain source-of-income, asset diversification and annual distribution requirements. As a RIC, the Company generally will not have to pay corporate-level U.S. federal income taxes on any income that it distributes in a timely manner to its stockholders.

On March 29, 2018, the Company’s Board of Directors (the “Board”), including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of the Board, approved the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Small Business Credit Availability Act (“SBCA”). As a result, the Company’s asset coverage requirement for senior securities changed from 200% to 150%, effective as of March 29, 2019.

During the third quarter of 2017, the Company formed a joint venture with Freedom 3 Opportunities LLC (“Freedom 3 Opportunities”), an affiliate of Freedom 3 Capital LLC, to create KCAP Freedom 3 LLC (the “F3C Joint Venture”). The F3C Joint Venture may originate loans from time to time and sell them to the fund capitalized by the F3C Joint Venture.

On November 8, 2018, the Company entered into an agreement with LibreMax Intermediate Holdings, LP (“LibreMax”) under which a wholly-owned subsidiary of the Company sold the Company’s wholly-owned asset manager subsidiaries Katonah Debt Advisors, LLC (“Katonah Debt Advisors”), Trimaran Advisors, L.L.C. (“Trimaran Advisors”), and Trimaran Advisors Management, L.L.C. (“Trimaran Advisors Management” and, together with Katonah Debt Advisors and Trimaran Advisors, the “Disposed Manager Affiliates”), for a cash purchase price of approximately $37.9 million (the “LibreMax Transaction”). The LibreMax Transaction closed on December 31, 2018. As of March 31, 2025, the Company’s remaining wholly-owned asset management subsidiaries (the “Asset Manager Affiliates”) were comprised of Katonah Management Holdings, LLC, and KCAP Management, LLC. Prior to their sale in the LibreMax Transaction, the Disposed Manager Affiliates represented substantially all of the Company’s investment in the Asset Manager Affiliates.

The Externalization Agreement

On December 14, 2018, the Company entered into a stock purchase and transaction agreement (the “Externalization Agreement”) with BC Partners Advisors L.P. (“BCP”), an affiliate of BC Partners LLP, (“BC Partners”), through which Sierra Crest Investment Management LLC (the “Adviser”), an affiliate of BC Partners, became the Company’s investment adviser pursuant to an investment advisory Agreement (the “Advisory Agreement”) with the Company. At a special meeting of the Company’s stockholders (the “Special Meeting”) held on February 19, 2019, the Company’s stockholders approved the Advisory Agreement. The transactions contemplated by the Externalization Agreement closed on April 1, 2019 (the “Closing”), and the Company commenced operations as an externally managed BDC managed by the Adviser on that date.

On the date of the Closing, the Company changed its name from KCAP Financial, Inc. to Portman Ridge Finance Corporation and on April 2, 2019, began trading on the NASDAQ Global Select Market under the symbol “PTMN.”

About the Adviser

The Adviser is an affiliate of BC Partners. Subject to the overall supervision of the Board, the Adviser is responsible for managing the Company’s business and activities, including sourcing investment opportunities, conducting research, performing diligence on potential investments, structuring the Company’s investments, and monitoring the Company’s portfolio companies on an ongoing basis through a team of investment professionals.

The Adviser seeks to invest on behalf of the Company in performing, well-established middle market businesses that operate across a wide range of industries (i.e., no concentration in any one industry). The Adviser employs fundamental credit analysis, targeting investments in businesses with relatively low levels of cyclicality and operating risk. The holding size of each position will generally be dependent upon a number of factors including total facility size, pricing and structure, and the number of other lenders in the facility. The Adviser has experience managing levered vehicles, both public and private, and seeks to enhance the Company’s returns through the use of leverage with a prudent approach that prioritizes capital preservation. The Adviser believes this strategy and approach offers attractive risk/return with lower volatility given the potential for fewer defaults and greater resilience through market cycles.

During the fourth quarter of 2020, LibreMax Intermediate Holdings, LP (“LibreMax”) sold its minority stake in the Adviser to a wholly-owned subsidiary of Mount Logan Capital Inc. (“Mount Logan”). An affiliate of BC Partners serves as administrator to Mount Logan.

OHAI Transaction

On December 18, 2019, we completed our acquisition of OHA Investment Corporation (“OHAI”). In accordance with the terms of the merger agreement, each share of common stock, par value $0.001 per share, of OHAI (the “OHAI Common Stock”) issued and outstanding was converted into the right to receive (i) an amount in cash, without interest, equal to approximately $0.42, and (ii) 0.3688 shares of common stock, par value $0.01 per share, of the Company (plus any applicable cash in lieu of fractional shares). Each share of OHAI Common Stock issued and outstanding received, as additional consideration funded by the Adviser, an amount in cash, without interest, equal to approximately $0.15.

GARS Transaction

17

PORTMAN RIDGE FINANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2025
(Unaudited)

On October 28, 2020, the Company completed its acquisition of Garrison Capital Inc., a publicly traded BDC (“GARS”, and such transaction, the “GARS Acquisition”). To effect the acquisition, our wholly owned merger subsidiary merged with and into GARS, with GARS surviving the merger as our wholly owned subsidiary. Immediately thereafter and as a single integrated transaction, GARS consummated a second merger, whereby GARS merged with and into us, with the Company surviving the merger.

In accordance with the terms of the merger agreement for the GARS Acquisition, dated June 24, 2020 (the “GARS Merger Agreement”), each share of common stock, par value $0.001 per share, of GARS (the “GARS Common Stock”) issued and outstanding was converted into the right to receive (i) an amount in cash, without interest, equal to approximately $1.19 and (ii) approximately 1.917 shares of common stock, par value $0.01 per share, of the Company (plus any applicable cash in lieu of fractional shares). Each share of GARS Common Stock issued and outstanding received, as additional consideration funded by the Adviser, an amount in cash, without interest, equal to approximately $0.31.

HCAP Transaction

On June 9, 2021, we completed our acquisition of Harvest Capital Credit Corporation, a publicly traded BDC (“HCAP”, and such transaction the “HCAP Acquisition”). To effect the acquisition, our wholly owned merger subsidiary (“Acquisition Sub”) merged with and into HCAP, with HCAP surviving the merger as the Company’s wholly owned subsidiary. Immediately thereafter and as a single integrated transaction, HCAP consummated a second merger, whereby HCAP merged with and into the Company, with the Company surviving the merger. As a result of, and as of the effective time of, the second merger, HCAP’s separate corporate existence ceased.

Under the terms of the merger agreement for the HCAP Acquisition, dated December 23, 2020 (the “HCAP Merger Agreement”), HCAP stockholders as of immediately prior to the effective time of the first merger (other than shares held by a subsidiary of HCAP or held, directly or indirectly, by the Company or Acquisition Sub, and all treasury shares (collectively, “Cancelled Shares”)) received a combination of (i) $18.54 million in cash paid by the Company, (ii) 15,252,453 validly issued, fully paid and non-assessable shares of the Company’s common stock, par value $0.01 per share, and (iii) an additional cash payment from the Adviser of $2.15 million in the aggregate.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required for annual consolidated financial statements. The unaudited interim consolidated financial statements (“consolidated financial statements”) and notes thereto should be read in conjunction with the financial statements and notes thereto in the Company’s Form 10-K for the year ended December 31, 2024, as filed with the U.S. Securities and Exchange Commission (the “Commission” or the “SEC”). The Company is an investment company and follows accounting and reporting guidance in Accounting Standards Codification (“ASC”) topic 946 – Financial Services – Investment Companies. Certain prior year investment related disclosures have been reclassified to conform to the current period presentation.

The consolidated financial statements reflect all adjustments, both normal and recurring which, in the opinion of management, are necessary for the fair presentation of the Company’s results of operations and financial condition for the periods presented. Furthermore, the preparation of the consolidated financial statements requires the Company to make significant estimates and assumptions including with respect to the fair value of investments that do not have a readily available market value. Actual results could differ from those estimates, and the differences could be material. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for the full year.

The Company consolidates the financial statements of its wholly-owned special purpose financing subsidiaries Portman Ridge Funding 2018-2 Ltd. (“PRF CLO 2018-2”) (formerly known as Garrison Funding 2018-2 Ltd.), Great Lakes KCAP Funding I, LLC, Kohlberg Capital Funding LLC I, KCAP Senior Funding I, LLC, KCAP Senior Funding I Holdings, LLC, Great Lakes Portman Ridge Funding, LLC, Garrison Capital Equity Holdings VIII LLC, Garrison Capital Equity Holdings XI LLC, GIG Rooster Holdings I LLC, OHA Nevada, LLC and HCAP ICC, LLC, in its consolidated financial statements as they are operated solely for investment activities of the Company. The creditors of Great Lakes Portman Ridge Funding, LLC received security interests in the assets which are owned by them and such assets are not intended to be available to the creditors of Portman Ridge Finance Corporation., or any other affiliate. The Company also consolidates various subsidiaries (KCAP Coastal LLC, PTMN Sub Holdings LLC, Garrison Capital Equity Holdings I LLC, Garrison Capital Equity Holdings II, LLC, and HCAP Equity Holdings, LLC) created primarily to provide specific tax treatment for the equity and other investments held by these entities.

In accordance with Article 6 of Regulation S-X under the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company does not consolidate portfolio company investments, including those in which it has a controlling interest.

The determination of the tax character of distributions is made on an annual (full calendar year) basis at the end of the year based upon our taxable income for the full year and the distributions paid during the full year. Therefore, an estimate of tax attributes made on a quarterly basis may not be representative of the actual tax attributes of distributions for a full year.

It is the Company’s primary investment objective to generate current income and capital appreciation by lending directly to privately-held middle market companies.

During the three months ended March 31, 2025, the Company made approximately $17.5 million of investments and had approximately $15.7 million in repayments and sales, resulting in net deployment of approximately $1.8 million for the period. During the three months ended March 31, 2024, the Company made approximately $37.2 million of investments and had approximately $35.5 million in repayments and sales, resulting in net deployment of approximately $1.7 million for the period.

As of March 31, 2025, our portfolio consisted of investments in 93 portfolio companies with a fair value of approximately $406.4 million. As of December 31, 2024, our portfolio consisted of investments in 93 portfolio companies with a fair value of approximately $405.0 million.

As of March 31, 2025, the debt investment portfolio (excluding our investments in the CLO Funds, equities and Joint Ventures) was spread across 24 different industries and 72 different portfolio companies with a fair value of approximately $324.8 million and average par balance per entity of approximately $2.6 million. As of December 31, 2024, the debt investment portfolio (excluding our investments in the CLO Funds, equities and Joint Ventures) was spread across 26 different industries and 71 different portfolio companies with a fair value of approximately $320.7 million and average par balance per entity of approximately $2.5 million.

Recent Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, amortization and depletion, within relevant income statement captions. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning in the first quarter ended March 31, 2028.

18

PORTMAN RIDGE FINANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2025
(Unaudited)

Early adoption and retrospective application is permitted. The Company is currently assessing the impact of this guidance, however, the Company does not expect a material impact on its consolidated financial statements.

Investments

Investment transactions are recorded on the applicable trade date. Realized gains or losses are determined using the specific identification method.

Valuation of Portfolio Investments. The Board has designated the Adviser as its “valuation designee” pursuant to Rule 2a-5 under the 1940 Act, and in that role the Adviser is responsible for performing fair value determinations relating to all of the Company's investments, including periodically assessing and managing any material valuation risks and establishing and applying fair value methodologies, in accordance with valuation policies and procedures that have been approved by the Board. The Board remains ultimately responsible for making fair value determinations under the 1940 Act and satisfies its responsibility through oversight of the valuation designee in accordance with Rule 2a-5. Debt and equity securities for which market quotations are readily available are generally valued at such market quotations. Debt and equity securities that are not publicly traded or whose market price is not readily available are valued by the Adviser based on detailed analyses prepared by management and, in certain circumstances, third parties with valuation expertise. Valuations are conducted by management on 100% of the investment portfolio at the end of each quarter. The Company follows the provisions of ASC 820: Fair Value Measurements and Disclosures (“ASC 820: Fair Value”). This standard defines fair value, establishes a framework for measuring fair value, and expands disclosures about assets and liabilities measured at fair value. ASC 820: Fair Value defines “fair value” as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Adviser utilizes one or more independent valuation firms to provide third party valuation consulting services. Each quarter the independent valuation firms perform third party valuations of the Company’s investments in material illiquid securities such that they are reviewed at least once during a trailing 12-month period. These third-party valuation estimates are considered as one of the relevant data points in the Adviser’s determination of fair value.

The Adviser may consider other methods of valuation than those set forth below to determine the fair value of Level III investments as appropriate in conformity with U.S. GAAP. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may differ materially from the values that would have been used had a readily available market existed for such investments. Further, such investments may be generally subject to legal and other restrictions on resale or otherwise be less liquid than publicly traded securities. In addition, changes in the market environment and other events may occur over the life of the investments that may cause the value realized on such investments to be different from the currently assigned valuations.

The majority of the Company’s investment portfolio is composed of debt and equity securities with unique contract terms and conditions and/or complexity that requires a valuation of each individual investment that considers multiple levels of market and asset specific inputs, which may include historical and forecasted financial and operational performance of the individual investment, projected cash flows, market multiples, comparable market transactions, the priority of the security compared with those of other securities for such issuers, credit risk, interest rates, and independent valuations and reviews.

Debt Securities. To the extent that the Company’s investments are liquid and are priced or have sufficient price indications from normal course trading at or around the valuation date (financial reporting date), such pricing will be used to determine the fair value of the investments. Valuations from third party pricing services may be used as an indication of fair value, depending on the volume and reliability of the valuation, sufficient and reasonable correlation of bid and ask quotes, and, most importantly, the level of actual trading activity. However, if the Company has been unable to identify directly comparable market indices or other market guidance that correlate directly to the types of investments the Company owns, the Company will determine fair value using alternative methodologies such as available market data, as adjusted, to reflect the types of assets the Company owns, their structure, qualitative and credit attributes and other asset-specific characteristics.

The Company derives fair value for its illiquid investments that do not have indicative fair values based upon active trades primarily by using a present value technique that discounts the estimated contractual cash flows for the subject assets with discount rates imputed by broad market indices, bond spreads and yields for comparable issuers relative to the subject assets (the “Income Approach”). The Company also considers, among other things, recent loan amendments or other activity specific to the subject asset. Discount rates applied to estimated contractual cash flows for an underlying asset vary by specific investment, industry, priority and nature of the debt security (such as the seniority or security interest of the debt security) and are assessed relative to leveraged loan and high-yield bond indices, at the valuation date. The Company has identified these indices as benchmarks for broad market information related to its loan and debt securities. Because the Company has not identified any market index that directly correlates to the loan and debt securities held by the Company and therefore uses these benchmark indices, these market indices may require significant adjustment to better correlate such market data for the calculation of fair value of the investment under the Income Approach. Such adjustments require judgment and may be material to the calculation of fair value. Further adjustments to the discount rate may be applied to reflect other market conditions or the perceived credit risk of the borrower. When broad market indices are used as part of the valuation methodology, their use is subject to adjustment for many factors, including priority, collateral used as security, structure, performance and other quantitative and qualitative attributes of the asset being valued. The resulting present value determination is then weighted along with any quotes from observable transactions and broker/pricing quotes. If such quotes are indicative of actual transactions with reasonable trading volume at or near the valuation date that are not liquidation or distressed sales, relatively more reliance will be put on such quotes to determine fair value. If such quotes are not indicative of market transactions or are insufficient as to volume, reliability, consistency or other relevant factors, such quotes will be compared with other fair value indications and given relatively less weight based on their relevancy. Other significant assumptions, such as coupon and maturity, are asset-specific and are noted for each investment in the Consolidated Schedules of Investments included herein.

Equity Securities. The Company’s equity securities in portfolio companies for which there is no liquid public market are carried at fair value based on the enterprise value of the portfolio company, which is determined using various factors, including EBITDA (earnings before interest, taxes, depreciation and amortization) and discounted cash flows from operations, less capital expenditures and other pertinent factors, such as recent offers to purchase a portfolio company’s securities or other liquidation events. The determined fair values are generally discounted to account for restrictions on resale and minority ownership positions. In the event market quotations are readily available for the Company’s equity securities in public companies, those investments may be valued using the Market Approach (as defined below). In cases where the Company receives warrants to purchase equity securities, a market standard Black-Scholes model is utilized.

The significant inputs used to determine the fair value of equity securities include prices, EBITDA and cash flows after capital expenditures for similar peer comparables and the investment entity itself. Equity securities are classified as Level III, when there is limited activity or less transparency around inputs to the valuation given the lack of information related to such equity investments held in nonpublic companies. Significant assumptions observed for comparable companies are applied to relevant financial data for the specific investment. Such assumptions, such as model discount rates or price/earnings multiples, vary by the specific investment, equity position and industry and incorporate adjustments for risk premiums, liquidity and company specific attributes. Such adjustments require judgment and may be material to the calculation of fair value.

Derivatives. The Company recognizes all derivative instruments as assets or liabilities at fair value in its financial statements. Derivative contracts entered into by the Company are not designated as hedging instruments, and as a result the Company presents changes in fair value and realized gains or losses through current period earnings. Derivative instruments are measured in terms of the notional contract amount and derive their value based upon one or more underlying instruments. Derivative instruments are subject to various risks similar to non-derivative instruments including market, credit, liquidity, and operational risks. The Company manages these risks on an aggregate basis as part of its risk management process. The derivatives may require the Company to pay or receive an upfront fee or premium. These upfront fees or premiums are carried forward

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2025
(Unaudited)

as cost or proceeds to the derivatives. The Company generally records a realized gain or loss on the expiration, termination, or settlement of a derivative contract. The periodic payments for the securities Swap and Option Agreement (excluding collateral) are included as a realized gain or loss.

The Company values derivative contracts using various pricing models that take into account the terms of the contract (including notional amount and contract maturity) and observable and unobservable inputs such as interest rates and changes in fair value of the reference asset.

Asset Manager Affiliates. The Company sold all of its investment in the Disposed Manager Affiliates on December 31, 2018. Previously, the Company’s investments in its wholly-owned Asset Manager Affiliates, were carried at fair value, which was primarily determined utilizing the discounted cash flow approach, which incorporated different levels of discount rates depending on the hierarchy of fees earned (including the likelihood of realization of senior, subordinate and incentive fees) and prospective modeled performance. Such valuation took into consideration an analysis of comparable asset management companies and the amount of assets under management. The Asset Manager Affiliates were classified as a Level III investment. Any change in value from period to period was recognized as net change in unrealized appreciation or depreciation.

CLO Fund Securities. The Company typically makes a non-controlling investment in the most junior class of securities of CLO Funds. The investments held by CLO Funds generally relate to non-investment grade credit instruments issued by corporations.

The Company’s investments in CLO Fund Securities are carried at fair value, which is based either on (i) the present value of the net expected cash inflows for interest income and principal repayments from underlying assets and cash outflows for interest expense, debt pay-down and other fund costs for the CLO Funds that are approaching or past the end of their reinvestment period and therefore are selling assets and/or using principal repayments to pay down CLO Fund debt (or will begin to do so shortly), and for which there continue to be net cash distributions to the class of securities owned by the Company, a Discounted Cash Flow approach, (ii) a discounted cash flow model that utilizes prepayment and loss assumptions based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow and comparable yields for similar securities or preferred shares to those in which the Company has invested, or (iii) indicative prices provided by the underwriters or brokers who arrange CLO Funds, a Market Approach. The Company recognizes unrealized appreciation or depreciation on the Company’s investments in CLO Fund Securities as comparable yields in the market change and/or based on changes in net asset values or estimated cash flows resulting from changes in prepayment or loss assumptions in the underlying collateral pool. As each investment in CLO Fund Securities ages, the expected amount of losses and the expected timing of recognition of such losses in the underlying collateral pool are updated and the revised cash flows are used in determining the fair value of the CLO Fund investment. The Company determines the fair value of its investments in CLO Fund Securities on a security-by-security basis.

Due to the individual attributes of each CLO Fund Security, they are classified as a Level III investment unless specific trading activity can be identified at or near the valuation date. When available, observable market information will be identified, evaluated and weighted accordingly in the application of such data to the present value models and fair value determination. Significant assumptions to the present value calculations include default rates, recovery rates, prepayment rates, investment/reinvestment rates and spreads and the discount rate by which to value the resulting underlying cash flows. Such assumptions can vary significantly, depending on market data sources which often vary in depth and level of analysis, understanding of the CLO market, detailed or broad characterization of the CLO market and the application of such data to an appropriate framework for analysis. The application of data points are based on the specific attributes of each individual CLO Fund Security’s underlying assets, historic, current and prospective performance, vintage, and other quantitative and qualitative factors that would be evaluated by market participants. The Company evaluates the source of market data for reliability as an indicative market input, consistency amongst other inputs and results and also the context in which such data is presented.

For rated note tranches of CLO Fund Securities (those above the junior class) without transactions to support a fair value for the specific CLO Fund and tranche, fair value is based on discounting estimated bond payments at current market yields, which may reflect the adjusted yield on the leveraged loan index for similarly rated tranches, as well as prices for similar tranches for other CLO Funds and also other factors such as indicative prices provided by underwriters or brokers who arrange CLO Funds, and the default and recovery rates of underlying assets in the CLO Fund, as may be applicable. Such model assumptions may vary and incorporate adjustments for risk premiums and CLO Fund specific attributes.

Short-term investments. Short-term investments are generally comprised of money market accounts, time deposits, and U.S. treasury bills.

Joint Ventures. The Company carries investments in joint ventures (“Joint Ventures”) at fair value based upon the fair value of the investments held by the joint venture, or the net asset value as a practical expedient. See Note 4 below, for more information regarding the Joint Ventures.

Cash and Cash Equivalents

Cash and cash equivalents include short-term, highly liquid investments, readily convertible to known amounts of cash, with an original maturity of three months or less in accounts such as demand deposit accounts and certain overnight investment sweep accounts. The company records cash and cash equivalents at cost, which approximates fair value.

Restricted Cash

Restricted cash and cash equivalents generally consists of cash held for interest and principal payments on the Company’s borrowings.

Foreign Currency Translations

The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the foreign exchange rate on the date of valuation. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including without limitation: foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.

Investment Income

Interest Income. Interest income, including the amortization of premium and accretion of discount and accrual of payment-in-kind (“PIK”) interest, is recorded on the accrual basis to the extent that such amounts are expected to be collected. The Company generally places a loan or security on non-accrual status and ceases recognizing interest income on such loan or security when a loan or security becomes 90 days or more past due or if the Company otherwise does not expect the debtor to be able to service its debt obligations. For investments with PIK interest, which represents contractual interest accrued and added to the principal balance that generally becomes due at maturity, we will not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is not collectible (i.e. via a partial or full non-accrual). Loans which are on partial or full non-accrual remain in such status until the borrower has demonstrated the ability and intent to pay contractual amounts due or such loans become current. As of March 31, 2025, six of our debt investments were on non-accrual status with an aggregate amortized cost of $22.8 million and an aggregate fair value of $10.7 million, which represented 4.7% and 2.6% of

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PORTMAN RIDGE FINANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2025
(Unaudited)

the investment portfolio, respectively. As of December 31, 2024, six of our debt investments were on non-accrual status with an aggregate amortized cost of $16.3 million and an aggregate fair value of $6.9 million, which represented 3.4% and 1.7% of the investment portfolio, respectively.

Investment Income on CLO Fund Securities. The Company generates investment income from its investments in the most junior class of securities issued by CLO Funds (typically preferred shares or subordinated securities). The Company’s CLO Fund junior class securities are subordinated to senior note holders who typically receive a stated interest rate of return based on a floating rate index, such as the Secured Overnight Financing Rate (“SOFR”) on their investment. The CLO Funds are leveraged funds and any excess cash flow or “excess spread” (interest earned by the underlying securities in the fund less payments made to senior note holders and less fund expenses and management fees) is paid to the holders of the CLO Fund’s subordinated securities or preferred shares.

U.S. GAAP-basis investment income on CLO equity investments is recorded using the effective interest method in accordance with the provisions of ASC 325-40, based on the anticipated yield and the estimated cash flows over the projected life of the investment. Yields are revised when there are changes in actual or estimated projected future cash flows due to changes in prepayments and/or re-investments, credit losses or asset pricing. Changes in estimated yield are recognized as an adjustment to the estimated yield prospectively over the remaining life of the investment from the date the estimated yield was changed. Accordingly, investment income recognized on CLO equity securities in the U.S. GAAP statement of operations differs from both the tax–basis investment income and from the cash distributions actually received by the Company during the period.

For non-junior class CLO Fund Securities, interest is earned at a fixed spread relative to the SOFR index.

Investment Income on Joint Ventures. The Company recognizes investment income on its investment in the Joint Ventures based upon its share of the estimated earnings and profits of the Joint Venture on the ex-dividend or ex-distribution date. The final determination of the tax attributes of distributions from the Joint Ventures is made on an annual (full calendar year) basis at the end of the year based upon taxable income and distributions for the full year. Therefore, any estimate of tax attributes of distributions made on an interim basis may not be representative of the actual tax attributes of distributions for the full year.

Fees and other income. Origination fees (to the extent services are performed to earn such income upon closing), amendment fees, consent fees, and other fees associated with investments in portfolio companies are recognized as income when they are earned. Prepayment penalties received by the Company for debt instruments repaid prior to maturity date are recorded as income upon receipt.

Debt Issuance Costs

Debt issuance costs represent fees and other direct costs incurred in connection with the Company’s borrowings. These amounts are capitalized, presented as a reduction of debt, and amortized using the effective interest method over the expected term of the borrowing.

Extinguishment of Debt

The Company derecognizes a liability if and only if it has been extinguished through delivery of cash, delivery of other financial assets, delivery of goods or services, or reacquisition by the Company of its outstanding debt securities whether the securities are cancelled or held. If the debt contains a cash conversion option, the Company allocates the consideration transferred and transaction costs incurred to the extinguishment of the liability component and the reacquisition of the equity component and recognize a gain or loss in the statement of operations.

Expenses

The Company is externally managed and in connection with the Advisory Agreement, pays the Adviser certain investment advisory fees and reimburses the Adviser and Administrator for certain expenses incurred in connection with the services they provide. See Note 5 “Related Party Transactions - Payment of Expenses under the Advisory and Administration Agreements.”

Shareholder Distributions

Distributions to common stockholders are recorded on the ex-dividend date. The amount of distributions, if any, is determined by the Board each quarter. The Company has adopted a dividend reinvestment plan (the “DRIP”) that provides for reinvestment of its distributions on behalf of its stockholders, unless a stockholder “opts out” of the DRIP to receive cash in lieu of having their cash distributions automatically reinvested in additional shares of the Company’s common stock.

Segment Reporting

In accordance with ASC Topic 280 - Segment Reporting (“ASC 280”), the Company has determined that it has a single operating and reporting segment, the “Investment Management Segment”. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets.

3. EARNINGS (LOSSES) PER SHARE

In accordance with the provisions of ASC 260, “Earnings per Share” (“ASC 260”), basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.

The following information sets forth the computation of basic and diluted net increase (decrease) in net assets per share for the three months ended March 31, 2025 and 2024:

	For the Three Months Ended March 31,
($ in thousands, except share and per share amounts)	2025			2024
Net decrease in net assets resulting from operations – basic and diluted	$	(82	)	$	4,486
Weighted average common stock outstanding – basic and diluted		9,198,223			9,344,994
Net decrease in net assets per share from operations – basic and diluted	$	(0.01	)	$	0.48

4. INVESTMENTS

The following table shows the Company’s portfolio by security type as of March 31, 2025 and December 31, 2024:

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PORTMAN RIDGE FINANCE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2025
(Unaudited)

($ in thousands)	March 31, 2025							December 31, 2024
Security Type	Cost/Amortized Cost		Fair Value		Fair Value Percentage of Total Portfolio			Cost/Amortized Cost		Fair Value		Fair Value Percentage of Total Portfolio
First Lien Debt	$	318,953	$	294,379		72.4	%	$	311,673	$	289,957		71.6	%
Second Lien Debt		35,147		28,724		7.1	%		34,892		28,996		7.2	%
Subordinated Debt		8,034		1,740		0.4	%		8,059		1,740		0.4	%
Collateralized Loan Obligations		3,800		4,639		1.1	%		5,318		5,193		1.3	%
Joint Ventures		65,883		50,491		12.4	%		66,747		54,153		13.4	%
Equity		32,098		26,218		6.5	%		31,921		24,762		6.1	%
Asset Manager Affiliates(1)		17,791		—		—			17,791		—		—
Derivatives		31		232		0.1	%		31		220		—
Total	$	481,737	$	406,423		100.0	%	$	476,432	$	405,021		100.0	%

(1)Represents the equity investment in the Asset Manager Affiliates.

The industry concentrations based on the fair value of the Company’s investment portfolio as of March 31, 2025 and December 31, 2024 were as follows:

($ in thousands)	March 31, 2025							December 31, 2024
Industry Classification	Cost/Amortized Cost		Fair Value		Fair Value Percentage of Total Portfolio			Cost/Amortized Cost	Fair Value	Fair Value Percentage of Total Portfolio
Services: Business	$	58,138	$	54,510		13.4	%