10-Q 1 tm2029646-1_10q.htm FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2020

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

For the transition period from to

Commission file number: 814-01154

AUDAX CREDIT BDC INC.

(Exact name of registrant as specified in its charter)

DELAWARE	47-3039124
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

101 HUNTINGTON AVENUE
BOSTON, MASSACHUSETTS	02199
(Address of principal executive office)	(Zip Code)

(617) 859-1500

(Registrant’s telephone number, including area code)

Not Applicable

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

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

None.

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

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 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 the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12 b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨

Non-accelerated filer	x	Smaller reporting company	¨

Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

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

The registrant had 38,343,577 shares of common stock, par value $0.001 per share, outstanding as of November 13, 2020.

AUDAX CREDIT BDC INC.

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION:

Item 1.	Financial Statements

	Statements of Assets and Liabilities as of September 30, 2020 (unaudited) and December 31, 2019	2
	Statements of Operations for the three and nine months ended September 30, 2020 (unaudited) and 2019 (unaudited)	3
	Statements of Changes in Net Assets for the nine months ended September 30, 2020 (unaudited) and 2019 (unaudited)	4
	Statements of Cash Flows for the nine months ended September 30, 2020 (unaudited) and 2019 (unaudited)	5
	Schedules of Investments as of September 30, 2020 (unaudited) and December 31, 2019	6
	Notes to Financial Statements (unaudited)	15

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34

	Overview	35
	Results of Operations	37
	Financial Condition, Liquidity and Capital Resources	39

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46

Item 4.	Controls and Procedures	47

PART II.	OTHER INFORMATION:	47

Item 1.	Legal Proceedings	47

Item 1A.	Risk Factors	47

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48

Item 3.	Defaults Upon Senior Securities	48

Item 4.	Mine Safety Disclosures	48

Item 5.	Other Information	48

Item 6.	Exhibits	49

SIGNATURES		50

Audax Credit BDC Inc.

Statements of Assets and Liabilities

September 30, 2020 and December 31, 2019

(Expressed in U.S. Dollars)

	September 30, 2020			December 31, 2019
	(unaudited)
Assets
Investments, at fair value
Non-Control/Non-Affiliate investments (Cost of $350,068,000 and $332,722,006, respectively)	$	341,488,783		$	330,874,911
Cash and cash equivalents		24,955,930			5,506,217
Interest receivable		1,031,575			942,329
Receivable from investments sold		-			1,993,379
Receivable from bank loan repayment		21,569			80,161
Other assets		49,265			-
Total assets	$	367,547,122		$	339,396,997

Liabilities
Accrued expenses and other liabilities	$	224,959		$	297,938
Fee due to administrator^(a)		66,250			66,250
Fees due to investment advisor, net of waivers^(a)		603,868			688,136
Payable for investments purchased		8,957,495			6,945,000
Total liabilities	$	9,852,572		$	7,997,324
Commitments and contingencies^(b)

Net Assets
Common stock, $0.001 par value per share, 100,000,000 shares authorized, 38,343,577 and 35,109,246 shares issued and outstanding, respectively	$	38,343		$	35,110
Capital in excess of par value		364,092,201			334,095,408
Total distributable earnings		(6,435,994	)		(2,730,845	)
Total Net Assets	$	357,694,550		$	331,399,673
Net Asset Value per Share of Common Stock at End of Period	$	9.33		$	9.44

Shares Outstanding		38,343,577			35,109,246

	^(a)	Refer to Note 4-Related Party Transactions for additional information.

	^(b)	Refer to Note 8-Commitments and Contingencies for additional information.

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Statements of Operations

(Expressed in U.S. Dollars)

(unaudited)

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Investment Income
Interest income
Non-Control/Non-Affiliate	$	4,721,470		$	5,347,398		$	14,885,290		$	15,433,946
Other		1,058			28,722			31,053			122,237
Total interest income		4,722,528			5,376,120			14,916,343			15,556,183
Other income
Non-Control/Non-Affiliate		14,577			5,214			153,950			38,364
Total income		4,737,105			5,381,334			15,070,293			15,594,547

Expenses
Base management fee^(a)	$	874,188		$	820,094		$	2,697,570		$	2,367,188
Incentive fee^(a)		356,461			680,250			1,641,419			1,939,486
Administrative fee^(a)		66,250			66,250			198,750			198,750
Directors' fees		52,500			52,500			157,500			157,500
Professional fees		132,514			136,660			369,572			524,791
Other expenses		83,232			58,388			191,422			246,441

Expenses before waivers from investment adviser and administrator		1,565,145			1,814,142			5,256,233			5,434,156
Base management fee waivers^(a)		(305,966	)		(287,033	)		(944,150	)		(828,516	)
Incentive fee waivers^(a)		(320,815	)		(543,178	)		(1,437,466	)		(1,553,628	)
Total expenses, net of waivers		938,364			983,931			2,874,617			3,052,012
Net Investment Income		3,798,741			4,397,403			12,195,676			12,542,535

Realized and Unrealized Gain (Loss) on Investments
Net realized loss on investments		(1,039,704	)		(826,185	)		(1,043,096	)		(724,454	)
Net change in unrealized appreciation (depreciation) on investments		6,436,468			182,576			(6,732,122	)		(479,160	)
Net realized and unrealized gain (loss) on investments		5,396,764			(643,609	)		(7,775,218	)		(1,203,614	)

Net Increase in Net Assets Resulting from Operations	$	9,195,505		$	3,753,794		$	4,420,458		$	11,338,921

Basic and Diluted per Share of Common Stock:
Net investment income	$	0.10		$	0.13		$	0.32		$	0.39
Net increase in net assets resulting from operations	$	0.24		$	0.11		$	0.12		$	0.36

Weighted average shares of common stock outstanding basic diluted		38,265,852			33,504,019			37,528,161			31,856,849

^(a)

Refer to Note 4-Related Party Transactions for additional information

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Statements of Changes in Net Assets

(Expressed in U.S. Dollars)

(unaudited)

	Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019
Operations
Net investment income	$	12,195,676		$	12,542,535
Net realized loss on investments		(1,043,096	)		(724,454	)
Net change in unrealized depreciation on investments		(6,732,122	)		(479,160	)
Net increase in net assets resulting from operations		4,420,458			11,338,921

Distributions:
Distributions to common stockholders		(8,125,607	)		(8,246,864	)
Return of capital to common stockholders		-			(60,025	)
Total distributions		(8,125,607	)		(8,306,889	)

Capital Share Transactions:
Issuance of common stock		30,000,000			50,000,000
Reinvestment of common stock		26			30
Net increase in net assets from capital share transactions		30,000,026			50,000,030

Net Increase in Net Assets		26,294,877			53,032,062

Net Assets, Beginning of Period		331,399,673			267,423,235

Net Assets, End of Period	$	357,694,550		$	320,455,297

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Statements of Cash Flows

(Expressed in U.S. Dollars)

(unaudited)

	Nine Months Ended			Nine Months Ended
	September 30, 2020			September 30, 2019
Cash flows from operating activities:
Net increase in net assets resulting from operations	$	4,420,458		$	11,338,921
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Net realized loss on investments		1,043,096			724,452
Net change in unrealized depreciation on investments		6,732,122			479,160
Accretion of original issue discount interest and payment-in-kind interest		(357,873	)		(199,813	)
Decrease in receivable from investments sold		1,993,379			-
Increase in interest receivable		(89,246	)		(409,770	)
Decrease (increase) in receivable from bank loan repayment		58,592			(34,133	)
Increase in other assets		(49,265	)		(45,000	)
Decrease in accrued expenses and other liabilities		(72,979	)		(89,937	)
(Decrease) increase in fees due to investment advisor^(a)		(84,268	)		134,219
Increase (decrease) in payable for investments purchased		2,012,495			(514,807	)
Investment activity:
Investments purchased		(52,376,341	)		(110,656,983	)
Proceeds from investments sold		6,437,456			5,017,964
Repayment of bank loans		27,907,668			46,240,554
Total investment activity		(18,031,217	)		(59,398,465	)

Net cash used in operating activities		(2,424,706	)		(48,015,173	)

Cash flows from financing activities:
Issuance of shares of common stock		30,000,000			50,000,000
Distributions paid to common stockholders		(8,125,581	)		(8,306,859	)

Net cash provided by financing activities		21,874,419			41,693,141

Net increase (decrease) in cash and cash equivalents		19,449,713			(6,322,032	)

Cash and cash equivalents:
Cash and cash equivalents, beginning of period		5,506,217			17,715,145

Cash and cash equivalents, end of period	$	24,955,930		$	11,393,113

Supplemental non-cash information
Issuance of common shares in connection with dividend reinvestment plan	$	26		$	30
Payment-in-kind ("PIK") interest income	$	75,144		$	32,822

^(a)

Refer to Note 4-Related Party Transactions for additional information

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Schedule of Investments

As of September 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par		Cost			Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (95.2%)^(g)(h):

Healthcare & Pharmaceuticals
Radiology Partners, Senior Secured Term B Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/25⁽ⁱ⁾	$	4,215,792	$	4,345,712		$	4,081,429
Advarra, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/26		3,909,806		3,873,848			3,909,805
Tecomet, Senior Secured 2017 Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/1/24⁽ⁱ⁾		3,928,827		3,914,207			3,860,072
Young, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/7/24		3,804,669		3,795,542			3,757,109
Specialty Care, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 9/1/23		3,317,371		3,320,262			3,309,076
Veritext, Senior Secured Initial Term Loan (First Lien), 3.48% (Libor + 3.25%), maturity 8/1/25		3,161,388		3,147,073			3,113,966
Zest Dental, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 3/14/25		3,247,592		3,265,442			2,955,308
Confluent Health, Senior Secured Initial Term Loan, 5.23% (Libor + 5.00%), maturity 6/24/26		2,962,500		2,938,237			2,955,094
Physicians Endoscopy, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 8/18/23		2,887,958		2,870,561			2,794,100
Waystar, Senior Secured Term Loan B, 4.23% (Libor + 4.00%), maturity 10/22/26		2,487,500		2,477,839			2,487,500
PharMedQuest, Senior Secured Initial Term Loan, 6.25% (Libor + 5.25%), maturity 10/31/24		2,481,250		2,452,364			2,481,250
MedRisk, Senior Secured Initial Term Loan (First Lien), 2.98% (Libor + 2.75%), maturity 12/27/24		2,431,250		2,435,776			2,431,250
Eating Recovery Center, Senior Secured Initial Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 9/23/24		2,427,643		2,410,238			2,415,505
OB Hospitalist Group, Senior Secured Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 8/1/24		2,316,088		2,306,941			2,316,088
Premise Health, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 7/10/25		2,312,092		2,318,760			2,312,092
MedRisk, Senior Secured Initial Loan (Second Lien), 6.98% (Libor + 6.75%), maturity 12/29/25		2,100,000		2,077,798			2,100,000
Packaging Coordinators, Senior Secured Term Loan, 9.75% (Libor + 8.75%), maturity 10/1/27⁽ⁱ⁾		2,000,000		1,992,500			2,000,000
Zelis RedCard, Senior Secured Initial Term Loan, 4.98% (Libor + 4.75%), maturity 9/30/26⁽ⁱ⁾		1,950,004		1,935,858			1,943,542
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 4.73% (Libor + 4.50%), maturity 12/22/25		1,965,000		1,950,929			1,930,613
Press Ganey, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 7/24/26⁽ⁱ⁾		1,980,000		1,973,551			1,927,953
CareCentrix, Senior Secured Initial Term Loan, 4.73% (Libor + 4.50%), maturity 4/3/25⁽ⁱ⁾		1,875,000		1,868,441			1,802,578
Alpaca, Senior Secured Term Loan, 7.75% (Libor + 6.75%), maturity 4/19/24^(j)		1,661,508		1,640,127			1,615,816
Upstream Rehabilitation, Senior Secured Term Loan, 4.73% (Libor + 4.50%), maturity 11/20/26		1,492,500		1,490,402			1,481,306
CPS, Unitranche, 6.50% (Libor + 5.50%), maturity 2/28/25		1,481,331		1,464,014			1,451,704
Stepping Stones, Unitranche, 6.75% (Libor + 5.75%), maturity 12/12/24		1,472,873		1,466,532			1,450,780
Ensemble, Senior Secured Closing Date Term Loan, 3.98% (Libor + 3.75%), maturity 8/3/26⁽ⁱ⁾		990,000		985,710			985,317
Veritext, Senior Secured Initial Term Loan (Second Lien), 7.23% (Libor + 7.00%), maturity 7/31/26		1,000,000		995,998			985,000
Athena, Senior Secured Term B Loan (First Lien), 4.73% (Libor + 4.50%), maturity 2/11/26⁽ⁱ⁾		989,956		981,393			982,969
Packaging Coordinators, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 6/30/23⁽ⁱ⁾		977,041		981,570			977,041
Alcami, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 7/14/25		980,000		976,396			948,150
Dermatologists of Central States, Senior Secured Term Loan, 7.50% (Libor + 6.50%), maturity 4/20/22		969,861		969,861			943,190
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 6.50% (Libor + 5.50%), maturity 5/9/25		980,000		969,429			940,800
ATI Physical Therapy, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/10/23⁽ⁱ⁾		914,856		918,723			880,549
Specialty Care, Senior Secured Initial Term Loan (Second Lien), 9.25% (Libor + 8.25%), maturity 9/1/24		850,000		844,216			850,000
Waystar, Senior Secured 2020 Incremental Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/22/26⁽ⁱ⁾		500,000		498,750			498,750
RMP & MedA/Rx, Senior Secured Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 2/6/25		433,366		432,651			433,366
Alpaca, Senior Secured Revolver, 7.75% (Libor + 6.75%), maturity 4/19/24^(j)		258,852		254,969			251,734
Advarra, Senior Secured Initial Revolving Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/9/26		-		(7,619	)		-

High Tech Industries
Qlik, Senior Secured 2019 Incremental Term Loan, 4.48% (Libor + 4.25%), maturity 4/26/24⁽ⁱ⁾		3,950,000		3,928,594			3,923,465
Netsmart, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 4.00%), maturity 10/1/27⁽ⁱ⁾		3,500,000		3,484,375			3,500,000
Masergy, Senior Secured Initial Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/16/24		3,428,571		3,421,397			3,428,571
Barracuda, Senior Secured 2019 Incremental Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 2/12/25⁽ⁱ⁾		3,424,943		3,436,190			3,410,505
Syncsort, Senior Secured 2018 Refinancing Term Loan (First Lien), 6.48% (Libor + 6.25%), maturity 8/16/24⁽ⁱ⁾		3,395,700		3,374,769			3,360,917
EverCommerce, Senior Secured Initial Term Loan, 5.73% (Libor + 5.50%), maturity 8/23/25		3,130,180		3,084,621			3,130,180
Jaggaer, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 8/14/26⁽ⁱ⁾		3,130,629		3,126,018			3,109,327
McAfee, Senior Secured Term B USD Loan, 3.98% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾		2,842,676		2,852,276			2,828,873
Idera, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 6/28/24⁽ⁱ⁾		2,625,742		2,624,087			2,625,742
Infogroup, Senior Secured Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 4/3/23⁽ⁱ⁾		2,897,419		2,878,026			2,567,475
ECi Software, Senior Secured Initial Term Loan, 5.25% (Libor + 4.25%), maturity 9/27/24⁽ⁱ⁾		2,444,677		2,435,896			2,444,677
ECi Software, Senior Secured Term Loan, 4.50% (Libor + 3.75%), maturity 9/30/27⁽ⁱ⁾		2,000,000		1,992,500			1,992,500
Sophos, Senior Secured Dollar Tranche Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 3/5/27^(i)(q)		1,995,000		1,878,459			1,963,707
QuickBase, Senior Secured Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 4/2/26		1,975,000		1,966,886			1,960,188
Intermedia , Senior Secured New Term Loan (First Lien), 7.00% (Libor + 6.00%), maturity 7/21/25		1,965,000		1,952,993			1,950,263
Flexera Software, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 2/26/25⁽ⁱ⁾		1,950,000		1,955,844			1,945,125
GlobalLogic, Senior Secured Initial Term Loan, 2.98% (Libor + 2.75%), maturity 8/1/25		1,719,688		1,712,086			1,719,688
Bomgar, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 4/18/25⁽ⁱ⁾		1,710,625		1,719,334			1,697,795
Corsair, Senior Secured Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 8/28/24		1,598,987		1,588,670			1,598,987
Ultimate Software , Senior Secured Initial Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 5/4/26⁽ⁱ⁾		1,571,241		1,571,186			1,564,433
OEConnection, Senior Secured Initial Term Loan, 5.00% (Libor + 4.00%), maturity 9/25/26⁽ⁱ⁾		1,530,207		1,523,837			1,518,730
Liaison, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 12/20/26		1,488,750		1,485,119			1,488,750
Navex Global, Senior Secured Initial Term Loan (First Lien), 3.48% (Libor + 3.25%), maturity 9/5/25⁽ⁱ⁾		1,470,000		1,457,569			1,441,426
Unison, Senior Secured 2020 Term Loan, 8.00% (Libor + 7.00%), maturity 6/25/26^(j)		997,500		973,344			990,019
Insurity, Senior Secured Closing Date Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 7/31/26		992,500		988,209			987,538

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of September 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par		Cost			Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

High Tech Industries (continued)
LANDesk, Senior Secured Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 1/20/24⁽ⁱ⁾	$	971,501	$	964,055		$	971,501
Community Brands, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 12/2/22		827,884		824,687			817,536
Sparta, Senior Secured New Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 8/21/24		789,937		790,250			780,062
Global Knowledge, Senior Secured Initial Term Loan (Second Lien), 13.25% (Libor + 12.25%), maturity 1/20/22^(i)(m)		1,000,000		996,979			600,000
McAfee, Senior Secured Initial Loan (Second Lien), 9.50% (Libor + 8.50%), maturity 9/29/25⁽ⁱ⁾		500,000		492,791			505,805
Idera, Senior Secured Loan (Second Lien), 10.00% (Libor + 9.00%), maturity 6/28/27		500,000		504,806			500,000
MultiPlan, Senior Secured Initial Term Loan, 3.75% (Libor + 2.75%), maturity 6/7/23⁽ⁱ⁾		500,000		495,975			500,000
HelpSystems, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 11/19/26⁽ⁱ⁾		497,500		496,297			497,500
DigiCert, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 4.00%), maturity 10/16/26⁽ⁱ⁾		497,500		469,866			495,013
Imperva, Senior Secured Term Loan, 5.00% (Libor + 4.00%), maturity 1/12/26⁽ⁱ⁾		498,737		495,620			493,063
Masergy, Senior Secured 2017 Replacement Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 12/15/23⁽ⁱ⁾		481,158		479,909			472,150
Endurance Int'l Group, Senior Secured Refinancing Loan (2018), 4.75% (Libor + 3.75%), maturity 2/9/23⁽ⁱ⁾		397,529		396,977			397,070

Services: Business
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 9/23/25		3,960,000		3,927,931			3,950,100
RevSpring, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 10/11/25⁽ⁱ⁾		3,930,000		3,926,168			3,851,400
Addison, Senior Secured Initial Term Loan, 4.98% (Libor + 4.75%), maturity 4/15/26		2,962,500		2,915,513			2,955,094
Fleetwash, Senior Secured Incremental Term Loan, 5.75% (Libor + 4.75%), maturity 10/1/24		2,940,281		2,919,253			2,918,229
Service Logic, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 12/31/24⁽ⁱ⁾		2,914,675		2,905,911			2,914,675
Aimbridge, Senior Secured Initial Term Loan (2019) (First Lien), 3.98% (Libor + 3.75%), maturity 2/2/26⁽ⁱ⁾		2,960,100		2,951,626			2,694,154
Duff & Phelps, Senior Secured Initial Dollar Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 4/9/27⁽ⁱ⁾		2,493,750		2,469,721			2,490,774
HireRight, Senior Secured Initial Term Loan (Second Lien), 7.48% (Libor + 7.25%), maturity 7/10/26		2,500,000		2,481,901			2,475,000
Allied Universal, Senior Secured Initial Term Loan, 4.48% (Libor + 4.25%), maturity 7/10/26⁽ⁱ⁾		2,472,349		2,455,710			2,466,168
Cast & Crew, Senior Secured Initial Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 2/9/26⁽ⁱ⁾		2,462,500		2,465,533			2,450,188
Newport Group, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 9/12/25⁽ⁱ⁾		2,452,462		2,441,096			2,378,888
Vistage, Senior Secured Term B Loan (First Lien), 5.00% (Libor + 4.00%), maturity 2/10/25		2,335,958		2,331,041			2,330,118
Sterling Backcheck, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 6/19/24⁽ⁱ⁾		2,375,801		2,375,801			2,157,464
Eliassen Group, Senior Secured Initial Term B Loan, 4.48% (Libor + 4.25%), maturity 11/5/24		1,487,495		1,481,968			1,487,495
OSG Billing Services, Senior Secured Term B Loan (First Lien), 4.73% (Libor + 4.50%), maturity 3/27/24		1,463,141		1,459,225			1,446,681
DBi Services, Senior Secured Term B Loan (Second Lien), 8.00% (Libor + 9.00%), maturity 2/2/26		1,268,604		1,268,604			1,268,604
WCG, Senior Secured Term Loan, 5.00% (Libor + 4.00%), maturity 1/8/27⁽ⁱ⁾		997,500		987,877			997,500
Diversified, Senior Secured Initial Term Loan, 5.75% (Libor + 4.75%), maturity 12/23/23		985,056		979,702			980,131
First Advantage, Senior Secured Term Facility (First Lien), 3.48% (Libor + 3.25%), maturity 1/31/27⁽ⁱ⁾		997,500		992,694			978,797
Franklin Energy, Senior Secured Term B Loan (First Lien), 4.23% (Libor + 4.00%), maturity 8/14/26		990,000		987,704			920,700
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 6/3/26		494,987		491,520			493,750

Chemicals, Plastics & Rubber
Plaskolite, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 12/15/25⁽ⁱ⁾		3,930,000		3,873,595			3,875,963
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 5/30/24		3,401,368		3,390,285			3,316,334
DuBois Chemicals, Senior Secured Term Loan (Second Lien), 8.73% (Libor + 8.50%), maturity 9/30/27		3,000,000		2,967,566			2,977,500
Universal Fiber Systems, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 10/4/21		2,788,959		2,785,926			2,677,401
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 1/31/25⁽ⁱ⁾		2,661,750		2,669,856			2,418,296
Unifrax, Senior Secured USD Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 12/12/25⁽ⁱ⁾		2,457,481		2,437,202			2,184,320
Q Holding, Senior Secured Term B Loan (2019), 6.00% (Libor + 5.00%), maturity 12/29/23		1,980,000		1,971,899			1,957,725
DuBois Chemicals, Senior Secured Term Loan B (First Lien), 4.73% (Libor + 4.50%), maturity 9/30/26		1,799,928		1,760,713			1,786,428
Zep, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 8/12/24⁽ⁱ⁾		1,941,216		1,939,534			1,832,327
Boyd Corp, Senior Secured Initial Loan (Second Lien), 6.98% (Libor + 6.75%), maturity 9/6/26⁽ⁱ⁾		2,000,000		2,002,020			1,768,186
Spartech, Senior Secured Term Loan, 5.50% (Libor + 4.50%), maturity 10/17/25		992,500		979,001			992,500
Prince Minerals, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 3/31/25⁽ⁱ⁾		975,000		971,594			900,870
Vantage Specialty Chemicals, Senior Secured Closing Date Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 10/28/24⁽ⁱ⁾		979,849		965,297			887,235
Boyd Corp, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 9/6/25⁽ⁱ⁾		498,728		463,728			467,142

Services: Consumer
CIBT Holdings, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 6/3/24⁽ⁱ⁾		5,382,541		5,367,814			3,983,080
A Place For Mom, Senior Secured Term Loan, 4.75% (Libor + 3.75%), maturity 8/10/24		2,645,687		2,645,188			2,586,159
Cambium Learning, Senior Secured Initial Term Loan (First Lien), 4.73% (Libor + 4.50%), maturity 12/18/25		2,456,210		2,358,273			2,456,210
Weld North, Senior Secured Initial Term Loan, 4.48% (Libor + 4.25%), maturity 2/15/25⁽ⁱ⁾		2,444,868		2,425,614			2,438,756
Mister Car Wash, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 5/14/26⁽ⁱ⁾		2,074,250		2,070,043			1,977,290
LegalShield, Senior Secured Initial Term Loan (First Lien), 3.48% (Libor + 3.25%), maturity 5/1/25⁽ⁱ⁾		1,927,000		1,915,817			1,876,187
Ned Stevens, Senior Secured Term A Loan, 6.75% (Libor + 5.75%), maturity 9/30/25^(j)		1,515,033		1,491,945			1,503,670
Smart Start, Senior Secured Initial Term Loan, 5.75% (Libor + 4.75%), maturity 8/19/27		1,000,000		990,000			992,500
Spring Education, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 7/30/25⁽ⁱ⁾		980,000		978,196			934,739
LegalShield, Senior Secured Incremental Term Loan, 0.00%, maturity 5/1/25⁽ⁱ⁾		500,000		492,500			492,500
StubHub, Senior Secured USD Term B Loan, 3.73% (Libor + 3.50%), maturity 2/12/27⁽ⁱ⁾		496,250		493,847			440,687
LegalShield, Senior Secured Initial Term Loan (Second Lien), 7.73% (Libor + 7.50%), maturity 5/1/26		27,778		27,778			27,639
Ned Stevens, Senior Secured Revolver, 5.75% (Libor + 4.75%), maturity 9/30/25^(j)		-		(2,614	)		-

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of September 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par		Cost		Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):
Aerospace & Defense
CPI International, Senior Secured Second Amendment Incremental Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 7/26/24	$	5,288,580	$	5,237,621	$	5,275,359
StandardAero, Senior Secured 2020 Term B-1 Loan, 3.73% (Libor + 3.50%), maturity 4/6/26⁽ⁱ⁾		3,541,154		3,531,095		3,182,096
Whitcraft, Unitranche, 7.00% (Libor + 6.00%), maturity 4/3/23		1,987,466		1,977,854		1,962,623
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 4/30/26		2,000,000		2,008,648		1,955,000
StandardAero, Senior Secured 2020 Term B-2 Loan, 3.73% (Libor + 3.50%), maturity 4/6/26⁽ⁱ⁾		1,903,846		1,898,438		1,710,804
Tronair, Senior Secured Initial Term Loan (First Lien), 5.75% (Libor + 4.75%), maturity 9/8/23		1,444,848		1,439,841		1,309,033
Amentum, Senior Secured Initial Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 1/29/27⁽ⁱ⁾		997,500		966,227		990,604
API Technologies, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 5/9/26		992,462		963,556		980,057
Eton, Senior Secured Initial Term Loan (Second Lien), 8.23% (Libor + 8.00%), maturity 5/1/26		500,000		495,169		496,250
Eton, Senior Secured Initial Term Loan (First Lien), 4.73% (Libor + 4.50%), maturity 5/1/25⁽ⁱ⁾		496,193		496,193		494,759
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 4/30/25		493,923		491,668		485,279
Novaria Group, Senior Secured Initial Term Loan, 6.25% (Libor + 5.25%), maturity 1/27/27		481,818		477,007		478,205

Banking, Finance, Insurance & Real Estate
American Beacon Advisors, Senior Secured Tranche C Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 4/30/23		2,500,000		2,506,203		2,493,750
AmeriLife, Senior Secured Initial Term Loan (First Lien), 4.23% (Libor + 4.00%), maturity 3/18/27⁽ⁱ⁾		2,392,651		2,377,248		2,380,688
Kestra Financial, Senior Secured Initial Term Loan, 4.48% (Libor + 4.25%), maturity 6/3/26⁽ⁱ⁾		1,980,000		1,963,363		1,965,150
Integro Insurance Brokers, Senior Secured Initial Term Loan (First Lien), 6.75% (Libor + 5.75%), maturity 10/31/22		1,966,333		1,943,176		1,956,501
Orion, Senior Secured Initial Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 9/24/27⁽ⁱ⁾		1,500,000		1,485,000		1,492,602
Advisor Group, Senior Secured Initial Term B Loan, 5.23% (Libor + 5.00%), maturity 7/31/26⁽ⁱ⁾		1,488,750		1,475,807		1,450,891
EPIC Insurance, Senior Secured Initial Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 9/6/24		1,458,750		1,456,670		1,444,163
Mitchell International, Senior Secured Amendment No. 2 New Term Loan Facility (First Lien), 4.75% (Libor + 4.25%), maturity 11/29/24⁽ⁱ⁾		1,000,000		946,074		982,081
Aperio, Senior Secured Initial Commitment, 5.23% (Libor + 5.00%), maturity 10/25/24		933,889		930,216		933,889
Sedgwick Claims, Senior Secured Initial Term Loan, 3.48% (Libor + 3.25%), maturity 12/31/25⁽ⁱ⁾		496,212		495,611		481,834

Capital Equipment
MW Industries, Senior Secured 2018 New Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾		2,425,000		2,425,000		2,205,711
BAS, Senior Secured Repricing Term Loan, 4.75% (Libor + 3.75%), maturity 5/21/24		1,954,438		1,956,545		1,949,551
Excelitas, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 12/1/25⁽ⁱ⁾		1,500,000		1,478,374		1,479,674
Edward Don, Senior Secured Initial Term Loan, 5.25% (Libor + 4.25%), maturity 7/2/25		1,467,538		1,462,577		1,394,161
Cole-Parmer, Senior Secured Closing Date Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 11/4/26⁽ⁱ⁾		995,000		990,968		992,513
TriMark, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 8/28/24⁽ⁱ⁾		986,153		885,776		601,297
Restaurant Technologies, Senior Secured Initial Loan (Second Lien), 6.73% (Libor + 6.50%), maturity 10/1/26		500,000		503,629		495,000
Duravant, Senior Secured Incremental Amendment No. 2 Term Loan (First Lien), 5.25% (Libor + 4.25%), maturity 7/19/24		496,212		496,212		492,491
Excelitas, Senior Secured Initial USD Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/2/24		489,924		493,185		486,250

Construction & Building
Tangent, Senior Secured Closing Date Term Loan (First Lien), 4.98% (Libor + 4.75%), maturity 11/30/24		1,815,789		1,803,401		1,802,171
PlayPower, Senior Secured Initial Term Loan, 5.73% (Libor + 5.50%), maturity 5/8/26		1,863,667		1,863,667		1,733,210
PlayCore, Senior Secured Initial Term Loan (Second Lien), 8.75% (Libor + 7.75%), maturity 9/29/25		1,500,000		1,468,498		1,492,500
DiversiTech Corporation, Senior Secured Tranche B-1 Term Loan (First Lien), 4.00% (Libor + 3.00%), maturity 6/3/24⁽ⁱ⁾		1,463,492		1,453,459		1,448,857
PlayCore, Senior Secured Initial Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 9/30/24		969,417		967,793		964,570
CHI Overhead Doors, Senior Secured Initial Term Loan (First Lien), 4.25% (Libor + 3.25%), maturity 7/29/22		623,533		619,423		623,533
Hoffman Southwest, Senior Secured Initial Term Loan, 6.00% (Libor + 5.00%), maturity 8/14/23		527,876		525,262		523,917
DiversiTech Corporation, Senior Secured Initial Term Loan (Second Lien), 8.50% (Libor + 7.50%), maturity 6/2/25		500,000		489,324		497,500
Acuren, Senior Secured Initial Term Loan, 4.48% (Libor + 4.25%), maturity 1/23/27⁽ⁱ⁾		497,500		495,097		496,878

Containers, Packaging & Glass
ProAmpac, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 11/20/23⁽ⁱ⁾		2,977,335		2,991,226		2,977,335
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 7/18/26		2,416,597		2,407,887		2,416,597
Pregis Corporation, Senior Secured Initial Term Loan (First Lien), 3.98% (Libor + 3.75%), maturity 7/31/26⁽ⁱ⁾		992,500		990,395		982,575
Tank Holding, Senior Secured 2020 Refinancing Term Loan (First Lien), 3.73% (Libor + 3.50%), maturity 3/26/26⁽ⁱ⁾		990,000		986,352		972,876
Berlin Packaging, Senior Secured Initial Term Loan (First Lien), 3.00% (Libor + 3.00%), maturity 11/7/25⁽ⁱ⁾		496,193		474,701		484,221
TricorBraun, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 11/30/23⁽ⁱ⁾		483,602		483,602		480,048
Alpha Packaging, Senior Secured Tranche B-1 Term Loan, 7.00% (Libor + 6.00%), maturity 11/12/21		483,212		482,776		479,588

Consumer Goods: Non-durable
Manna Pro, Senior Secured Term Loan, 7.00% (Libor + 6.00%), maturity 12/8/23		3,412,500		3,378,463		3,395,438
Augusta Sportswear Group, Senior Secured Initial Term Loan, 5.50% (Libor + 4.50%), maturity 10/26/23		2,209,019		2,197,476		1,988,118
Badger Sportswear, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 9/11/23		1,906,766		1,897,523		1,863,864
Varsity Brands, Senior Secured Initial Term Loan (First Lien), 4.50% (Libor + 3.50%), maturity 12/16/24⁽ⁱ⁾		979,869		985,476		831,872

Automotive
Mavis, Senior Secured Closing Date Term Loan (First Lien), 3.48% (Libor + 3.25%), maturity 3/20/25⁽ⁱ⁾		3,839,353		3,826,741		3,682,216
Truck Hero, Senior Secured Initial Term Loan (Second Lien), 9.25% (Libor + 8.25%), maturity 4/21/25		1,800,000		1,798,681		1,800,000
Safe Fleet, Senior Secured Tranche B-1 Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 2/3/25		975,849		954,599		963,651
Safe Fleet, Senior Secured Initial Term Loan (Second Lien), 6.98% (Libor + 6.75%), maturity 2/2/26		500,000		489,187		492,500
IXS, Senior Secured Initial Term Loan, 6.00% (Libor + 5.00%), maturity 3/5/27⁽ⁱ⁾		303,492		300,636		300,780

Wholesale
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 4.00% (Libor + 3.00%), maturity 3/20/25		3,905,783		3,906,232		3,876,490
PetroChoice, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 8/19/22		1,900,184		1,884,522		1,748,170
ABB Optical, Senior Secured Initial Term Loan (First Lien), 6.00% (Libor + 5.00%), maturity 6/15/23		1,443,627		1,442,406		1,403,927

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of September 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par		Cost		Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):
Transportation: Cargo
Odyssey Logistics & Technology , Senior Secured New Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 10/12/24⁽ⁱ⁾	$	3,614,314	$	3,610,514	$	3,425,590
Transplace, Senior Secured Closing Date Term Loan (First Lien), 4.75% (Libor + 3.75%), maturity 10/7/24		2,448,360		2,442,858		2,442,239
Capstone Logistics, Senior Secured Term Loan (First Lien), 5.50% (Libor + 4.50%), maturity 10/7/21⁽ⁱ⁾		1,160,469		1,160,608		1,160,469

Forest Products & Paper
Hoffmaster Group, Senior Secured Tranche B-1 Term Loan (First Lien), 5.00% (Libor + 4.00%), maturity 11/21/23⁽ⁱ⁾		2,904,644		2,894,898		2,488,009
Loparex, Senior Secured Initial Term Loan (First Lien), 4.73% (Libor + 4.50%), maturity 7/31/26		1,485,000		1,472,127		1,473,863
Hoffmaster Group, Senior Secured Initial Term Loan (Second Lien), 10.50% (Libor + 9.50%), maturity 11/21/24		1,250,000		1,250,000		1,209,375

Beverage, Food & Tobacco
Sovos Brands, Senior Secured Initial Term Loan (2018), 4.98% (Libor + 4.75%), maturity 11/20/25		1,965,000		1,949,614		1,965,000
Kettle Cuisine, Senior Secured Initial Term Loan (First Lien) , 4.75% (Libor + 3.75%), maturity 8/25/25		1,960,000		1,953,448		1,945,300

Media: Advertising, Printing & Publishing
Ansira, Unitranche, 7.50% (Libor + 6.50%), maturity 12/20/24		1,976,306		1,966,499		1,581,046
Northstar, Senior Secured Term Loan, 7.25% (Libor + 6.25%), maturity 6/7/22		1,402,843		1,402,843		1,385,308
Vestcom International, Senior Secured L/C Collaterilized, 5.00% (Libor + 4.00%), maturity 12/19/23		781,751		784,077		773,933

Consumer Goods: Durable
Strategic Partners, Senior Secured Initial Term Loan, 4.75% (Libor + 3.75%), maturity 6/30/23⁽ⁱ⁾		2,291,799		2,289,275		2,280,340

Retail
Grocery Outlet, Senior Secured 2020 Term Loan (First Lien), 2.98% (Libor + 2.75%), maturity 10/22/25⁽ⁱ⁾		1,269,483		1,267,497		1,253,955

Metals & Mining
Dynatect, Senior Secured Term B Loan, 5.50% (Libor + 4.50%), maturity 9/30/22		990,317		989,788		972,987

Hotel, Gaming & Leisure
Auto Europe, Senior Secured Initial Dollar Term Loan, 6.00% (Libor + 5.00%), maturity 10/21/23		1,119,231		1,112,450		951,346

Health Care Equipment & Services
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 4.48% (Libor + 4.25%), maturity 8/31/26⁽ⁱ⁾		581,851		576,553		556,479

Total Bank Loans			$	348,947,419	$	340,683,844

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par	Cost		Value
EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.2%)^(g)(h):

Services: Business
DBi Services, Class A-1 Preferred Units (800.53 units)^(k)		$	800,535	$	576,385
DBi Services, Class B Common Shares (169,362.31 shares)^(l)(m)			-		-

Services: Consumer
Ned Stevens, Class B Common Units (261,438 Common B units, Fair value of $220,135)^(j)(m)(n)(o)			261,438		220,135

Healthcare & Pharmaceuticals
Alpaca, Class A Units (33,300.04 Class A Units, Fair value of $8,419)^(j)(m)(o)(p)			58,608		8,419

Total Equity and Preferred Shares		$	1,120,581	$	804,939


Total Portfolio Investments^(r)		$	350,068,000	$	341,488,783

	(a)	All companies are located in the United States of America, unless otherwise noted.
	(b)	Interest rate percentages represent actual interest rates which are indexed from then 30-day London Interbank Offered Rate ("LIBOR") unless otherwise noted. LIBOR rates are subject to interest rate floors which can vary based on the contractual agreement with the borrower. Due dates represent the contractual maturity date.
	(c)	All loans are income-producing, unless otherwise noted.
	(d)	All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act") unless otherwise noted.
	(e)	All investments are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.
	(f)	Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
	(g)	Percentages are calculated using fair value of investments over net assets.
	(h)	As defined in 1940 Act, the Company is not deemed to be an “Affiliated Person” of or “Control” this portfolio company because it neither owns 5% or more of the portfolio company’s outstanding voting securities nor has the power to exercise control over the management or policies of such portfolio company (including through a management agreement).
	(i)	Investment was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
	(j)	Three of our affiliated funds, Audax Direct Lending Solutions Fund - A, L.P., Audax Direct Lending Solutions Fund - C, L.P., and Audax Direct Lending Solutions Fund - D, L.P., 'co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
	(k)	Represents an investment owned by APD Dbi Preferred, Inc., a holding company for the investment in DBi.
	(l)	Represents an investment owned by APD Dbi Common, Inc., a holding company for the investment in DBi.

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of September 30, 2020

(Expressed in U.S. Dollars)

(unaudited)

	(m)	Investment is non-income producing.
	(n)	Represents an investment in APD NS Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
	(o)	Other net assets of $0 at the aggregator levels are included in the fair value of the investments when using the net asset value as a practical expedient.
	(p)	Represents an investment in APD ALP Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
	(q)	The borrower for Sophos, Surf Holdings S.a.r.l., is located in United Kingdom.
	(r)	At September 30, 2020, the cost of investments for income tax purposes was $350,068,000 the gross unrealized depreciation for federal tax purposes was $9,547,748, the gross unrealized appreciation for federal income tax purposes was $968,531, and the net unrealized depreciation was $8,579,217.

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Schedule of Investments

As of December 31, 2019

(Expressed in U.S. Dollars)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par		Cost			Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (99.6%)^(g)(h):

Healthcare & Pharmaceuticals
Radiology Partners, Senior Secured Term B Loan (First Lien), 6.66% (Libor + 4.75%), maturity 7/9/25⁽ⁱ⁾	$	5,187,469	$	5,149,488		$	5,211,316
Pathway, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 12/20/24		4,956,161		4,911,269			4,943,769
Tecomet, Senior Secured 2017 Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 5/1/24		3,959,391		3,942,690			3,949,491
Advarra, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/9/26^(j)		3,939,427		3,899,562			3,909,879
Young, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 11/7/24		3,834,156		3,823,748			3,805,398
Specialty Care, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 9/1/23		3,342,954		3,346,536			3,334,596
Zest Dental, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 3/14/25⁽ⁱ⁾		3,333,213		3,356,177			3,199,884
Veritext, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 8/1/25		3,187,891		3,173,500			3,171,951
Confluent Health, Senior Secured Initial Term Loan, 6.91% (Libor + 5.00%), maturity 6/24/26		2,985,000		2,957,225			2,962,613
Physicians Endoscopy, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 8/18/23		2,906,775		2,886,868			2,874,073
PharMedQuest, Senior Secured Initial Term Loan, 7.41% (Libor + 5.50%), maturity 10/31/24		2,500,000		2,463,488			2,481,250
Waystar, Senior Secured Term Loan B, 5.91% (Libor + 4.00%), maturity 10/22/26		2,500,000		2,487,836			2,481,250
MedRisk, Senior Secured Initial Term Loan (First Lien), 4.66% (Libor + 2.75%), maturity 12/27/24		2,450,000		2,455,219			2,450,000
Eating Recovery Center, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 9/23/24		2,446,014		2,426,873			2,421,554
OB Hospitalist Group, Senior Secured Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/1/24		2,316,088		2,305,375			2,316,088
MedRisk, Senior Secured Initial Loan (Second Lien), 8.66% (Libor + 6.75%), maturity 12/29/25		2,100,000		2,074,832			2,100,000
Zelis RedCard, Senior Secured Initial Term Loan, 6.66% (Libor + 4.75%), maturity 9/30/26⁽ⁱ⁾		2,000,000		1,980,688			2,014,889
Press Ganey, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 7/24/26⁽ⁱ⁾		1,995,000		1,987,841			2,011,774
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 12/22/25		1,980,000		1,962,728			1,957,725
CareCentrix, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 4/3/25		1,912,500		1,904,900			1,912,500
Premise Health, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 7/10/25		1,829,786		1,838,127			1,825,212
Alpaca, Senior Secured Term Loan, 6.16% (Libor + 4.25%), maturity 4/19/24^(j)		1,674,127		1,650,502			1,669,942
CPS, Unitranche, 7.16% (Libor + 5.25%), maturity 2/28/25		1,492,500		1,472,625			1,488,769
Stepping Stones, Unitranche, 7.41% (Libor + 5.50%), maturity 12/12/24		1,484,409		1,477,320			1,467,709
Ensemble, Senior Secured Closing Date Term Loan, 5.66% (Libor + 3.75%), maturity 8/3/26⁽ⁱ⁾		997,500		992,719			1,006,949
Veritext, Senior Secured Initial Term Loan (Second Lien), 8.91% (Libor + 7.00%), maturity 7/31/26		1,000,000		995,613			995,000
Upstream Rehabilitation, Senior Secured Term Loan, 6.41% (Libor + 4.50%), maturity 11/20/26		1,000,000		995,045			992,500
Packaging Coordinators, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 6/30/23⁽ⁱ⁾		984,694		990,391			978,540
Alcami, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/14/25		987,500		983,389			972,688
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 7.41% (Libor + 5.50%), maturity 5/9/25		987,500		975,453			960,344
Dermatologists of Central States, Senior Secured Term Loan, 8.41% (Libor + 6.50%), maturity 4/20/22		977,310		970,785			960,207
ATI Physical Therapy, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 5/10/23⁽ⁱ⁾		922,022		926,900			920,657
Specialty Care, Senior Secured Initial Term Loan (Second Lien), 10.16% (Libor + 8.25%), maturity 9/1/24		850,000		843,325			850,000
Athena, Senior Secured Term B Loan (First Lien), 6.41% (Libor + 4.50%), maturity 2/11/26⁽ⁱ⁾		497,494		495,129			500,973
RMP & MedA/Rx, Senior Secured Term Loan, 6.41% (Libor + 4.50%), maturity 3/2/22		441,647		440,553			441,647
Injured Workers Pharmacy, Senior Secured Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 7/22/20		378,724		375,038			375,883
Alpaca, Senior Secured Revolver, 6.16% (Libor + 4.25%), maturity 4/19/24^(j)		134,215		130,332			133,879
Advarra, Senior Secured Initial Revolving Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/9/26^(j)		-		(7,619	)		-

High Tech Industries
Qlik, Senior Secured 2019 Incremental Term Loan, 6.16% (Libor + 4.25%), maturity 4/26/24		3,980,000		3,954,501			3,950,150
Barracuda, Senior Secured 2019 Incremental Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 2/12/25⁽ⁱ⁾		3,451,222		3,464,246			3,477,852
Masergy, Senior Secured Initial Loan (Second Lien), 9.41% (Libor + 7.50%), maturity 12/16/24		3,428,571		3,420,116			3,411,429
Syncsort, Senior Secured 2018 Refinancing Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 8/16/24		3,421,688		3,397,118			3,387,471
Sparta, Senior Secured New Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 8/21/24		3,421,250		3,423,008			3,344,272
Jaggaer, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/14/26⁽ⁱ⁾		3,154,345		3,150,077			3,166,174
Infogroup, Senior Secured Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 4/3/23		2,919,937		2,895,405			2,890,738
McAfee, Senior Secured Term B USD Loan, 5.66% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾		2,864,431		2,875,358			2,883,023
eResearch (ERT), Senior Secured Initial Term Loan, 5.66% (Libor + 3.75%), maturity 5/2/23⁽ⁱ⁾		2,538,022		2,538,022			2,538,022
ECi Software Solutions, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 9/27/24⁽ⁱ⁾		2,463,579		2,451,402			2,468,662
EverCommerce, Senior Secured Initial Term Loan, 7.41% (Libor + 5.50%), maturity 8/23/25		2,184,679		2,142,420			2,179,217
Idera, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 6/28/24		2,146,089		2,145,337			2,146,089
Intermedia , Senior Secured New Term Loan (First Lien), 7.91% (Libor + 6.00%), maturity 7/21/25⁽ⁱ⁾		1,980,000		1,963,699			1,985,107
Flexera Software, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 2/26/25⁽ⁱ⁾		1,965,000		1,970,591			1,973,626
QuickBase, Senior Secured Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 4/2/26		1,990,000		1,981,139			1,970,100
GlobalLogic, Senior Secured Initial Term Loan, 5.16% (Libor + 3.25%), maturity 8/1/25⁽ⁱ⁾		1,728,438		1,719,948			1,728,438
Bomgar, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 4/18/25		1,723,750		1,733,891			1,702,203
Liaison, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 12/20/26⁽ⁱ⁾		1,500,000		1,496,250			1,496,250
OEConnection, Senior Secured Initial Term Loan, 5.91% (Libor + 4.00%), maturity 9/25/26		1,496,250		1,488,267			1,485,028
Navex Global, Senior Secured Initial Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 9/5/25⁽ⁱ⁾		1,481,250		1,467,074			1,484,310
Compusearch Software Systems, Senior Secured Term Loan C, 6.16% (Libor + 4.25%), maturity 5/8/23		1,432,979		1,432,391			1,425,814
Ultimate Software , Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 5/4/26⁽ⁱ⁾		1,080,625		1,082,379			1,089,829
Insurity, Senior Secured Closing Date Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 7/31/26		1,000,000		995,219			997,500
Global Knowledge, Senior Secured Initial Term Loan (Second Lien), 12.16% (Libor + 10.25%), maturity 1/20/22		1,000,000		995,441			988,750
LANDesk, Senior Secured Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 1/20/24⁽ⁱ⁾		978,627		969,988			981,924
Corsair, Senior Secured Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 8/28/24		982,444		978,622			967,707
Community Brands, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 12/2/22		834,254		830,477			825,912
HelpSystems, Senior Secured Initial Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 11/19/26⁽ⁱ⁾		500,000		498,750			498,750
Masergy, Senior Secured 2017 Replacement Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 12/15/23		484,908		483,405			482,484
Endurance Int'l Group, Senior Secured Refinancing Loan (2018), 5.66% (Libor + 3.75%), maturity 2/9/23⁽ⁱ⁾		404,507		403,788			401,013

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Schedule of Investments

As of December 31, 2019 (Continued)

(Expressed in U.S. Dollars)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par		Cost			Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

Services: Business
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 9/23/25	$	3,990,000	$	3,950,952		$	3,970,050
RevSpring, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 10/11/25		3,960,000		3,955,758			3,950,100
Aimbridge, Senior Secured Initial Term Loan (2019) (First Lien), 5.66% (Libor + 3.75%), maturity 2/2/26		2,982,525		2,973,315			2,975,069
Addison, Senior Secured Initial Term Loan, 6.91% (Libor + 5.00%), maturity 4/15/26		2,985,000		2,931,090			2,962,613
Fleetwash, Senior Secured Incremental Term Loan, 6.66% (Libor + 4.75%), maturity 10/1/24		2,962,613		2,938,051			2,947,799
Sterling Backcheck, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 6/19/24⁽ⁱ⁾		2,894,218		2,894,218			2,883,365
Allied Universal, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 7/10/26⁽ⁱ⁾		2,613,149		2,591,810			2,635,788
Cast & Crew, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 2/9/26⁽ⁱ⁾		2,481,250		2,484,662			2,497,618
HireRight, Senior Secured Initial Term Loan (Second Lien), 9.16% (Libor + 7.25%), maturity 7/10/26		2,500,000		2,479,365			2,481,250
Newport Group, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 9/12/25		2,471,231		2,458,304			2,452,697
First Advantage, Senior Secured Term Loan (First Lien), 7.16% (Libor + 5.25%), maturity 6/30/22		2,000,000		1,996,094			1,990,000
Vistage, Senior Secured Term B Loan (First Lien), 5.91% (Libor + 4.00%), maturity 2/10/25		1,965,000		1,961,739			1,960,088
Service Logic, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 12/31/24		2,339,998		2,333,703			2,316,598
Eliassen Group, Senior Secured Initial Term B Loan, 6.41% (Libor + 4.50%), maturity 11/5/24		1,493,123		1,486,683			1,489,390
OSG Billing Services, Senior Secured Term B Loan (First Lien), 6.41% (Libor + 4.50%), maturity 3/27/24		1,474,855		1,470,192			1,467,481
DBi Services, Senior Secured Term B Loan (Second Lien), 8.00% (Libor + 8.00%), maturity 2/2/26		1,268,869		1,268,869			1,268,869
Diversified, Senior Secured Initial Term Loan, 6.66% (Libor + 4.75%), maturity 12/23/23		992,500		986,007			990,019
WCG, Senior Secured Term Loan, 5.91% (Libor + 4.00%), maturity 1/8/27⁽ⁱ⁾		1,000,000		990,000			990,000
Franklin Energy, Senior Secured Term B Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/14/26		997,500		995,123			987,525
Worley Claims Services, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 6/3/26⁽ⁱ⁾		498,747		494,694			498,747

Chemicals, Plastics & Rubber
Plaskolite, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 12/15/25		3,960,000		3,896,852			3,920,400
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 5/30/24		3,427,599		3,413,966			3,341,909
Universal Fiber Systems, Senior Secured Initial Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 10/4/21		2,811,462		2,806,249			2,741,176
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 1/31/25		2,682,225		2,691,463			2,615,169
Unifrax, Senior Secured USD Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 12/12/25⁽ⁱ⁾		2,476,241		2,454,997			2,286,895
Q Holding, Senior Secured Term B Loan (2019), 6.91% (Libor + 5.00%), maturity 12/29/23		1,995,000		1,985,388			1,985,025
Boyd Corp, Senior Secured Initial Loan (Second Lien), 8.66% (Libor + 6.75%), maturity 9/6/26		2,000,000		2,002,217			1,985,000
DuBois Chemicals 2019, Senior Secured Term Loan (Second Lien), 10.41% (Libor + 8.50%), maturity 9/30/27		2,000,000		1,950,862			1,985,000
Borchers, Senior Secured Term Loan, 6.41% (Libor + 4.50%), maturity 11/1/24		1,910,136		1,905,332			1,900,585
Zep, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 8/12/24		1,956,225		1,954,251			1,584,542
DuBois Chemicals 2019, Senior Secured Term Loan B (First Lien), 6.41% (Libor + 4.50%), maturity 9/30/26		1,560,865		1,516,107			1,549,159
Spartech, Senior Secured Term Loan, 6.91% (Libor + 5.00%), maturity 10/17/25		1,000,000		985,134			992,500
Vantage Specialty Chemicals, Senior Secured Closing Date Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 10/28/24		987,406		970,460			967,657
Prince Minerals, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 3/31/25⁽ⁱ⁾		982,500		978,584			892,145

Services: Consumer
CIBT Holdings, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 6/3/24		5,424,266		5,407,341			5,370,023
A Place For Mom, Senior Secured Term Loan, 5.66% (Libor + 3.75%), maturity 8/10/24		2,666,144		2,665,484			2,599,490
Weld North, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 2/15/25		2,463,674		2,441,530			2,463,674
Cambium Learning, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 12/18/25		2,475,000		2,365,058			2,462,625
Smart Start, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 2/21/22		2,417,625		2,417,625			2,399,493
Mister Car Wash, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 5/14/26⁽ⁱ⁾		1,990,000		1,985,439			2,002,726
SMG, Senior Secured Initial Term Loan (First Lien), 4.91% (Libor + 3.00%), maturity 1/23/25⁽ⁱ⁾		1,976,118		1,963,737			1,976,118
Valet Living, Senior Secured Initial Term Loan, 5.91% (Libor + 4.00%), maturity 9/28/25		1,983,718		1,979,195			1,973,800
LegalShield, Senior Secured Initial Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 5/1/25		1,940,510		1,927,273			1,935,659
Ned Stevens, Senior Secured Term A Loan, 7.66% (Libor + 5.75%), maturity 9/30/25^(j)		1,603,824		1,572,794			1,591,795
Spring Education, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 7/30/25		987,500		985,450			982,563
Ned Stevens, Senior Secured Revolver, 6.66% (Libor + 4.75%), maturity 9/30/25^(j)		-		(2,614	)		-

Aerospace & Defense
CPI International, Senior Secured TL, 6.66% (Libor + 4.75%), maturity 7/26/24		4,000,000		3,960,000			3,970,000
StandardAero, Senior Secured Initial Term B-1 Loan, 5.91% (Libor + 4.00%), maturity 4/6/26⁽ⁱ⁾		3,567,981		3,556,378			3,599,650
StandardAero, Senior Secured Initial Term B-2 Loan, 5.91% (Libor + 4.00%), maturity 4/6/26⁽ⁱ⁾		1,918,269		1,912,031			1,935,296
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 9.66% (Libor + 7.75%), maturity 4/30/26		1,500,000		1,514,877			1,485,000
Tronair, Senior Secured Initial Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 9/8/23		1,459,899		1,453,639			1,427,051
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 4/30/25⁽ⁱ⁾		497,481		495,124			494,358

Banking, Finance, Insurance & Real Estate
American Beacon Advisors, Senior Secured Tranche C Term Loan (Second Lien), 9.41% (Libor + 7.50%), maturity 4/30/23		2,000,000		2,000,000			1,995,000
Kestra Financial, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 6/3/26		1,995,000		1,976,368			1,990,013
Integro Insurance Brokers, Senior Secured Initial Term Loan (First Lien), 7.66% (Libor + 5.75%), maturity 10/31/22		1,989,457		1,951,565			1,939,721
Advisor Group, Senior Secured Initial Term B Loan, 6.91% (Libor + 5.00%), maturity 7/31/26⁽ⁱ⁾		1,490,625		1,465,245			1,478,349
EPIC Insurance, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 9/6/24		1,470,000		1,467,280			1,458,975
AmeriLife Group, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 6/12/26		978,070		973,369			970,735
Aperio, Senior Secured Loan, 6.91% (Libor + 5.00%), maturity 10/25/24		933,889		929,619			933,889

Consumer Goods: Non-durable
Manna Pro, Senior Secured Term Loan, 7.91% (Libor + 6.00%), maturity 12/8/23		3,438,750		3,399,412			3,412,959
Augusta Sportswear Group, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 10/26/23		2,228,517		2,214,540			2,211,804
Badger Sportswear, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 9/11/23		1,906,766		1,895,349			1,873,398
Varsity Brands, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 12/16/24⁽ⁱ⁾		987,418		993,636			973,861

The accompanying notes are an integral part of these financial statements.

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2019

(Expressed in U.S. Dollars)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par		Cost		Value
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS^(h)(Continued):

Containers, Packaging & Glass
ProAmpac, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 11/20/23⁽ⁱ⁾	$	3,000,535	$	3,017,391	$	2,972,870
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 7/18/26		1,995,000		1,985,448		1,995,000
Tank Holding, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 3/26/26⁽ⁱ⁾		997,500		993,032		1,003,416
Pregis Corporation, Senior Secured Initial Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 7/31/26		1,000,000		997,605		995,000
TricorBraun, Senior Secured Closing Date Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 11/30/23⁽ⁱ⁾		494,901		494,901		491,978
Alpha Packaging, Senior Secured Tranche B-1 Term Loan, 6.16% (Libor + 4.25%), maturity 5/12/20		488,837		488,275		483,338

Capital Equipment
MW Industries, Senior Secured 2018 New Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 9/30/24		2,443,750		2,443,750		2,419,313
BAS, Senior Secured Repricing Term Loan, 5.66% (Libor + 3.75%), maturity 5/21/24		1,969,661		1,971,159		1,959,812
Edward Don, Senior Secured Initial Term Loan, 6.16% (Libor + 4.25%), maturity 7/2/25		1,478,769		1,472,799		1,452,890
Cole-Parmer, Senior Secured Closing Date Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 11/4/26		1,000,000		995,111		992,500
Excelitas, Senior Secured Initial USD Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 12/2/24		493,703		497,366		490,000
TriMark, Senior Secured Initial Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 8/28/24⁽ⁱ⁾		491,207		492,665		406,376

Wholesale
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 4.91% (Libor + 3.00%), maturity 3/20/25		3,935,671		3,936,089		3,906,153
PetroChoice, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 8/19/22		1,915,184		1,893,658		1,891,245
ABB Optical, Senior Secured Initial Term Loan (First Lien), 6.91% (Libor + 5.00%), maturity 6/15/23		1,454,906		1,452,426		1,422,170

Transportation: Cargo
Odyssey Logistics & Technology , Senior Secured New Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 10/12/24		3,615,344		3,611,340		3,588,229
Transplace, Senior Secured Closing Date Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 10/7/24⁽ⁱ⁾		2,466,458		2,459,768		2,460,292
Capstone Logistics, Senior Secured Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 10/7/21		1,161,707		1,161,868		1,144,282

Construction & Building
PlayPower, Senior Secured Initial Term Loan, 7.41% (Libor + 5.50%), maturity 5/8/26		1,934,722		1,934,722		1,920,212
Tangent, Senior Secured Closing Date Term Loan (First Lien), 6.66% (Libor + 4.75%), maturity 11/30/24		1,496,238		1,480,815		1,488,757
DiversiTech Corporation, Senior Secured Tranche B-1 Term Loan (First Lien), 4.91% (Libor + 3.00%), maturity 6/3/24		1,474,832		1,462,983		1,460,084
PlayCore, Senior Secured Initial Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 9/30/24⁽ⁱ⁾		976,912		975,059		964,701
CHI Overhead Doors, Senior Secured Initial Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 7/29/22⁽ⁱ⁾		628,442		623,246		630,799
Hoffman Southwest, Senior Secured Initial Term Loan, 6.41% (Libor + 4.50%), maturity 8/14/23		527,876		523,556		525,237

Automotive
Mavis, Senior Secured Closing Date Term Loan (First Lien), 5.16% (Libor + 3.25%), maturity 3/20/25⁽ⁱ⁾		3,592,566		3,578,510		3,516,090
Truck Hero, Senior Secured Initial Term Loan (Second Lien), 10.16% (Libor + 8.25%), maturity 4/21/25		1,800,000		1,798,507		1,795,500
Safe Fleet, Senior Secured Tranche B-1 Term Loan (First Lien), 5.66% (Libor + 3.75%), maturity 2/3/25		987,500		963,545		982,563

Media: Advertising, Printing & Publishing
Ansira, Unitranche, 7.66% (Libor + 5.75%), maturity 12/20/22		1,905,523		1,893,460		1,872,177
Northstar, Senior Secured Term Loan, 8.16% (Libor + 6.25%), maturity 6/7/22		1,449,510		1,449,510		1,438,639
Imagine! Print Solutions, Senior Secured Term B-1 Loan (First Lien), 6.66% (Libor + 4.75%), maturity 6/21/22		1,458,750		1,451,152		1,035,712
Vestcom International, Senior Secured L/C Collaterilized, 5.91% (Libor + 4.00%), maturity 12/19/23		783,878		786,703		777,999

Forest Products & Paper
Hoffmaster Group, Senior Secured Tranche B-1 Term Loan (First Lien), 5.91% (Libor + 4.00%), maturity 11/21/23		2,927,277		2,915,319		2,898,005
Loparex, Senior Secured Initial Term Loan (First Lien), 6.41% (Libor + 4.50%), maturity 7/31/26		1,496,250		1,481,906		1,481,288

Beverage, Food & Tobacco
Sovos Brands, Senior Secured Initial Term Loan (2018), 6.91% (Libor + 5.00%), maturity 11/20/25		1,980,000		1,962,677		1,960,200
Kettle Cuisine, Senior Secured Initial Term Loan (First Lien) , 5.66% (Libor + 3.75%), maturity 8/25/25		1,975,000		1,966,820		1,970,063

Hotel, Gaming & Leisure
On Location, Senior Secured Second Amendment Term Loan, 6.91% (Libor + 5.00%), maturity 9/29/21		2,396,566		2,384,489		2,384,584
Auto Europe, Senior Secured Initial Dollar Term Loan, 6.91% (Libor + 5.00%), maturity 10/21/23		1,119,231		1,110,756		1,119,231

Consumer Goods: Durable
Strategic Partners, Senior Secured Initial Term Loan, 5.66% (Libor + 3.75%), maturity 6/30/23		2,309,428		2,306,211		2,309,428

Retail
Grocery Outlet, Senior Secured 2019 Term Loan (First Lien), 5.41% (Libor + 3.50%), maturity 10/22/25⁽ⁱ⁾		1,269,483		1,266,905		1,286,070

Metals & Mining
Dynatect, Senior Secured Term B Loan, 6.41% (Libor + 4.50%), maturity 9/30/22		997,579		990,633		987,604

Health Care Equipment & Services
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 6.16% (Libor + 4.25%), maturity 8/31/26⁽ⁱ⁾		525,311		519,256		526,851

Total Bank Loans			$	331,601,425	$	330,155,654

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2019

(Expressed in U.S. Dollars)

Portfolio Investments ^{(a) (b) (c) (d) (e) (f)}	Par	Cost		Value
EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.2%)^(g)(h):

Services: Business
DBi Services, Class A-1 Preferred Units (800.53 units)^(k)		$	800,535	$	400,267
DBi Services, Class B Common Shares (169,362.31 shares)^(l)(m)			-		-

Services: Consumer
Ned Stevens, Class B Common Units (261,438 Common B units, Fair value of $261,438)^{(f)(j)(m)(n)(o)}			261,438		261,438

Healthcare & Pharmaceuticals
Alpaca, Class A Units (33,300.04 Class A Units, Fair value of $57,552)^{(f)(i)(j)(m)(o)(p)}			58,608		57,552

Total Equity and Preferred Shares		$	1,120,581	$	719,257


Total Portfolio Investments^(q)		$	332,722,006	$	330,874,911

	(a)	All companies are located in the United States of America, unless otherwise noted.
	(b)	Interest rate percentages represent actual interest rates which are indexed from then 30-day London Interbank Offered Rate ("LIBOR") unless otherwise noted. LIBOR rates are subject to interest rate floors which can vary based on the contractual agreement with the borrower. Due dates represent the contractual maturity date.
	(c)	All loans are income-producing, unless otherwise noted.
	(d)	All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act") unless otherwise noted.
	(e)	All investments are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.
	(f)	Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
	(g)	Percentages are calculated using fair value of investments over net assets.
	(h)	As defined in 1940 Act, the Company is not deemed to be an “Affiliated Person” of or “Control” this portfolio company because it neither owns 5% or more of the portfolio company’s outstanding voting securities nor has the power to exercise control over the management or policies of such portfolio company (including through a management agreement).
	(i)	Investment was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
	(j)	Three of our affiliated funds, Audax Direct Lending Solutions Fund - A, L.P., Audax Direct Lending Solutions Fund - C, L.P., and Audax Direct Lending Solutions Fund - D, L.P., 'co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
	(k)	Represents an investment owned by APD Dbi Preferred, Inc., a holding company for the investment in DBi.
	(l)	Represents an investment owned by APD Dbi Common, Inc., a holding company for the investment in DBi.
	(m)	Investment is non-income producing.
	(n)	Represents an investment in APD NS Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
	(o)	Other net assets of $0 at the aggregator levels are included in the fair value of the investments when using the net asset value as a practical expedient.
	(p)	Represents an investment in APD ALP Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
	(q)	At December 31, 2019, the cost of investments for income tax purposes was $332,722,006 the gross unrealized depreciation for federal tax purposes was $2,951,506, the gross unrealized appreciation for federal income tax purposes was $1,104,411, and the net unrealized depreciation was $1,847,095.

Audax Credit BDC Inc.

Notes to Financial Statements

September 30, 2020

(unaudited)

Note 1. Organization

Audax Credit BDC Inc. (the “Company”) is a Delaware corporation that was formed on January 29, 2015. The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, effective with the Company’s taxable year ended December 31, 2015, the Company has elected to be treated for federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the U.S. Internal Revenue Code of 1986, as amended (the “Code”).

The Company commenced business operations on July 8, 2015, the date on which the Company made its first investment. The Company has been formed for the purpose of investing primarily in the debt of leveraged, non-investment grade middle market companies, with the principal objective of generating income and capital appreciation. The Company’s investment strategy is to invest primarily in first lien senior secured loans and selectively in second lien loans to middle market companies. During the period prior to July 8, 2015, the Company was a development stage company, as defined in Paragraph 915-10-05, Development Stage Entity, of the Financial Accounting Standards Board’s (“FASB’s”) Accounting Standards Codification, as amended (“ASC”). During this time, the Company was devoting substantially all of its efforts to establishing its business and its planned principal operations had not commenced. All losses incurred during the period prior to July 8, 2015 have been considered a part of the Company’s development stage activities.

Audax Management Company (NY), LLC (the “Adviser”) is the investment adviser of the Company. The Adviser is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended.

Note 2. Significant Accounting Policies

Basis of Presentation

As an investment company, the accompanying financial statements of the Company are prepared in accordance with the investment company accounting and reporting guidance of ASC Topic 946, “Financial Services – Investment Companies,” as amended (“ASC Topic 946”), which incorporates the requirements for reporting on Form 10-Q and Articles 6 and 10 of Regulation S-X, as well as generally accepted accounting principles in the United States of America (“GAAP”).

Certain financial information that is normally included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted herein. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. In the opinion of management of the Company, the unaudited financial results included herein contain all adjustments, consisting solely of normal accruals, considered necessary for the fair presentation of financial statements for the interim period included herein. The current period’s results of operations are not necessarily indicative of the operating results to be expected for future periods. The accounting records of the Company are maintained in U.S. dollars.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that may affect the reported amounts and disclosures in the financial statements. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ, and these differences could be material.

Cash and Cash Equivalents

Cash and cash equivalents are stated at fair value. The Company considers all highly liquid investments purchased with maturities of three months or less and money market mutual funds to be cash equivalents. No cash equivalent balances were held at September 30, 2020 and December 31, 2019. At such dates, cash was not subject to any restrictions on withdrawal.

Expenses

The Company is responsible for investment expenses, legal expenses, auditing fees and other expenses related to the Company’s operations. Such fees and expenses, including expenses initially incurred by the Adviser, may be reimbursed by the Company.

Investment Valuation Policy

The Company conducts the valuation of the Company’s investments, pursuant to which the Company’s net asset value is determined, at all times consistent with GAAP and the 1940 Act. The Company’s Board of Directors (the “Board of Directors”), with the assistance of the Company’s Audit Committee (the “Audit Committee”), determines the fair value of the Company’s investments, for investments with a public market and for investments with no readily available public market, on at least a quarterly basis, in accordance with the terms of ASC Topic 820, “Fair Value Measurement,” (“ASC 820”). The Company’s valuation procedures are set forth in more detail below.

ASC 820 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.” Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same – to estimate the price when an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).

ASC 820 establishes a hierarchal disclosure framework which ranks the observability of inputs used in measuring financial instruments at fair value. The observability of inputs is impacted by a number of factors, including the type of financial instruments and their specific characteristics. Financial instruments with readily available quoted prices, or for which fair value can be measured from quoted prices in active markets, generally will have a higher degree of market price observability and a lesser degree of judgment applied in determining fair value.

The three-level hierarchy for fair value measurement is defined as follows:

Level 1 —

Inputs to the valuation methodology are quoted prices available in active markets for identical financial instruments as of the measurement date. The types of financial instruments in this category include unrestricted securities, including equities and derivatives, listed in active markets. The Company does not adjust the quoted price for these instruments, even in situations where the Company holds a large position, and a sale could reasonably be expected to impact the quoted price.

Level 2 —

Inputs to the valuation methodology are quoted prices in markets that are not active or for which all significant inputs are either directly or indirectly observable as of the measurement date. The types of financial instruments in this category include less liquid and restricted securities listed in active markets, securities traded in markets that are not active, government and agency securities, and certain over-the-counter derivatives where the fair value is based on observable inputs.

Level3 —

Inputs to the valuation methodology are unobservable and significant to the overall fair value measurement, and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments in this category include investments in privately held entities, non-investment grade residual interests in securitizations, collateralized loan obligations, and certain over-the-counter derivatives where the fair value is based on unobservable inputs.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

Pursuant to the framework set forth above, the Company values securities traded in active markets on the measurement date by multiplying the exchange closing price of such traded securities/instruments by the quantity of shares or amount of the instrument held. The Company may also obtain quotes with respect to certain of its investments from pricing services, brokers or dealers’ quotes, or counterparty marks in order to value liquid assets that are not traded in active markets.

Pricing services aggregate, evaluate and report pricing from a variety of sources including observed trades of identical or similar securities, broker or dealer quotes, model-based valuations and internal fundamental analysis and research. When doing so, the Company determines whether the quote obtained is sufficient in accordance with GAAP to determine the fair value of the security. If determined adequate, the Company uses the quote obtained.

Securities that are illiquid or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in the judgment of the Board of Directors, does not represent fair value, are each valued as of the measurement date using all techniques appropriate under the circumstances and for which sufficient data are available. These valuation techniques vary by investment but include comparable public market valuations, comparable precedent transaction valuations and discounted cash flow analyses. Inputs for these valuation techniques include relative credit information, observed market movement, industry sector information, and other market data, which may include benchmarking of comparable securities, issuer spreads, reported trades, and reference data, such as market research publications, when available. The process used to determine the applicable value is as follows:

(i) Each portfolio company or investment is initially valued by the investment professionals of the Adviser responsible for the portfolio investment using a standardized template designed to approximate fair market value based on observable market inputs and updated credit statistics and unobservable inputs. Additionally, as a part of the Company’s valuation process, the Adviser may employ the services of one or more independent valuation firms engaged by the Company;

(ii) Preliminary valuation conclusions are documented and discussed with the Company’s senior management and members of the Adviser’s valuation team;

(iii) The Audit Committee reviews the assessments of the Adviser or independent valuation firm (to the extent applicable) and provides the Board of Directors with recommendations with respect to the fair value of the investments in the Company’s portfolio; and

(iv) The Board of Directors discusses the valuation recommendations of the Audit Committee and determines the fair value of the investments in the Company’s portfolio in good faith based on the input of the Adviser, the independent valuation firm (to the extent applicable) and in accordance with the Company’s valuation policy.

The Audit Committee’s recommendation of fair value is generally based on its assessment of the following factors, as relevant:

the nature and realizable value of any collateral;

call features, put features and other relevant terms of debt;

the portfolio company’s ability to make payments;

the portfolio company’s actual and expected earnings and discounted cash flow;

prevailing interest rates for like securities and expected volatility in future interest rates;

the markets in which the portfolio company does business and recent economic and/or market events; and

comparisons to publicly traded securities.

Investment performance data utilized are the most recently available as of the measurement date, which in many cases may reflect up to a one quarter lag in information.

Securities for which market quotations are not readily available or for which a pricing source is not sufficient may include the following:

private placements and restricted securities that do not have an active trading market;

securities whose trading has been suspended or for which market quotes are no longer available;

debt securities that have recently gone into default and for which there is no current market;

securities whose prices are stale; and

securities affected by significant events.

The Board of Directors is responsible for the determination, in good faith, of the fair value of the Company’s portfolio investments.

Determination of fair value involves subjective judgments and estimates. Accordingly, these notes to the Company’s financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on the Company’s financial statements.

Security transactions are recorded on the trade date (the date the order to buy or sell is executed or, in the case of privately issued securities, the closing date, which is when all terms of the transactions have been defined).

Realized gains and losses on investments are determined based on the identified cost method.

Refer to Note 3 — Investments for additional information regarding fair value measurements and the Company’s application of ASC 820.

Interest Income Recognition

Interest income, adjusted for amortization of premium, acquisition costs, and amendment fees and the accretion of original issue discount (“OID”), are recorded on an accrual basis to the extent that such amounts are expected to be collected. Generally, when a loan becomes 120 days or more past due, or if the Company’s qualitative assessment indicates that the debtor is unable to service its debt or other obligations, the Company will place the loan on non-accrual status and cease recognizing interest income on that loan for financial reporting purposes until the borrower has demonstrated the ability and intent to pay contractual amounts due. However, the Company will remain contractually entitled to this interest. Interest payments received on non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management’s judgment, are likely to remain current or, due to a restructuring, the interest income is deemed to be collectible. As of September 30, 2020, the Company had one investment on non-accrual which totaled 0.28% and 0.18% of its total portfolio at cost and fair market value, respectively. The Company did not have any investments on non-accrual as of December 31, 2019.

The Company currently holds loans in the portfolio that contain OID and expects to hold loans in the future that contain payment-in-kind (“PIK”) provisions. The Company recognizes OID for loans originally issued at a discount and recognizes the income over the life of the obligation based on an effective yield calculation. PIK interest, computed at the contractual rate specified in a loan agreement, is added to the principal balance of a loan and recorded as income over the life of the obligation. Therefore, the actual collection of PIK income may be deferred until the time of debt principal repayment. To maintain the ability to be taxed as a RIC, the Company may need to pay out of both OID and PIK non-cash income amounts in the form of distributions, even though the Company has not yet collected the cash on either.

As of September 30, 2020, the Company held 186 investments in loans with OID. The Company accrued OID income of $102,083 and $282,729 for the three and nine months ended September 30, 2020, respectively. The unamortized balance of OID on debt investments as of September 30, 2020, totaled $1,901,454. As of December 31, 2019, the Company held 162 investments in loans with OID. The Company accrued OID income of $64,494 and $199,813 for the three and nine months ended September 30, 2019, respectively. The unamortized balance of OID investments as of December 31, 2019, totaled $1,733,632.

As of September 30, 2020, the Company held three investments which had a PIK interest component. The Company recorded $39,222 and $75,145 of PIK interest income for the three and nine months ended September 30, 2020, respectively. As of September 30, 2019, the Company held one investment which had a PIK interest component. The Company recorded $0 and $32,822 of PIK interest income for the three and nine months ended September 30, 2019, respectively.

As of September 30, 2020 and December 31, 2019, the Company held $24,955,930 and $5,506,217 cash and cash equivalents, respectively. For the three and nine months ended September 30, 2020, the Company earned $1,058 and $31,053, respectively, of interest income related to cash, which is included in other interest income within the accompanying statement of operations. For the three and nine months ended September 30, 2019, the Company earned $28,722 and $122,237, respectively, of interest income related to cash, which is included in other interest income within the accompanying statement of operations.

Other Income Recognition

The Company generally records prepayment fees and amendment fees upon receipt of cash or as soon as the Company becomes aware of the prepayment or amendment.

Dividend income on equity investments is accrued to the extent that such amounts are expected to be collected and if the Company has the option to collect such amounts in cash.

Prepayment fees, amendment fees and dividend income are accrued in other income in the accompanying statements of operations.

For the three and nine months ended September 30, 2020, the Company accrued $14,577 and $153,950 of other income, respectively, related to amendment fees. For the three and nine months ended September 30, 2019, the Company accrued $5,214 and $38,364 of other income, respectively, related to amendment and documentation fees.

New Accounting Pronouncements

In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13") which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 would be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The adoption of ASU 2018-13 did not have a material impact on the Company’s disclosures.

Note 3. Investments

Fair Value

In accordance with ASC 820, the fair value of the Company’s investments is determined to be the price that would be received for an investment in a current sale, assuming an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date as described in Note–2 – Significant Accounting Policies.

As of September 30, 2020, $182,630,994 of the Company’s investments were valued using unobservable inputs, and $158,857,789 were valued using observable inputs. During the nine months ended September 30, 2020, $15,434,694 transferred into Level 3 due to a decrease in observable prices in the market and $74,210,909 transferred out of Level 3 due to the liquidity in the market and transparency of inputs.

As of December 31, 2019, $249,452,590 of the Company’s investments were valued using unobservable inputs, and $81,422,321 were valued using observable inputs. During the nine months ended September 30, 2019, $61,185,683 into Level 3 due to a decrease in observable prices in the marker and $20,300,196 transferred out of Level 3 due to the liquidity in the market and transparency of inputs.

The following table presents the Company’s investments carried at fair value as of September 30, 2020 and December 31, 2019, by caption on the Company’s accompanying statements of assets and liabilities and by security type.

	Assets at Fair Value as of September 30, 2020
	Level 1		Level 2		Level 3		Total
First lien debt	$	-	$	154,504,124	$	156,281,866	$	310,785,990
Second lien debt		-		4,353,665		25,544,189		29,897,854
Equity and Preferred Shares		-		-		804,939		804,939
Total	$	-	$	158,857,789	$	182,630,994	$	341,488,783

	Assets at Fair Value as of December 31, 2019
	Level 1		Level 2		Level 3		Total
First lien debt	$	-	$	81,422,321	$	227,392,535	$	308,814,856
Second lien debt		-		-		21,340,798		21,340,798
Equity and Preferred Shares		-		-		719,257		719,257
Total	$	-	$	81,422,321	$	249,452,590	$	330,874,911

In accordance with ASC 820, the following table provides quantitative information about the Level 3 fair value measurements of the Company’s investments as of September 30, 2020. The weighted average calculations in the table below are based on the fair value balances for all debt related calculations for the particular input.

As of September 30, 2020

Fair

Valuation

Unobservable

Weighted

Value

Technique

Inputs ⁽¹⁾

Range ⁽²⁾

Average ⁽³⁾

First lien debt

143,094,935

Matrix Pricing

Senior Leverage

2.80x - 10.54x

5.12x

Total Leverage

2.80x - 10.54x

6.20x

Interest Coverage

0.87x - 5.22x

2.31x

Debt Service Coverage

0.80x - 4.04x

1.93x

TEV Coverage

0.78x - 6.88x

2.42x

Liquidity

33.77% - 333.00%

154.79%

Spread Comparison

275bps - 700bps

449bps

12,235,585

Market Analysis

Senior Leverage

5.39x - 18.12x

7.64x

Total Leverage

5.70x - 19.75x

9.21x

Interest Coverage

0.26x - 2.34x

1.57x

Debt Service Coverage

0.26x - 2.34x

1.27x

TEV Coverage

0.44x - 1.82x

1.47x

Liquidity

33.06% - 226.94%

133.59%

Spread Comparison

350bps - 650bps

478bps

Second lien debt

24,275,585

Matrix Pricing

Senior Leverage

4.61x - 8.99x

6.10x

Total Leverage

4.61x - 8.99x

6.10x

Interest Coverage

1.17x - 3.19x

2.13x

Debt Service Coverage

1.01x - 2.83x

1.82x

TEV Coverage

0.87x - 2.51x

1.77x

Liquidity

85.32% - 257.41%

151.86%

Spread Comparison

650bps - 950bps

773bps

Total

179,606,105

(1)

For any portfolio company, the unobservable input "Liquidity" is a fraction, expressed as a percentage, the numerator of which is the sum of the company's undrawn revolving credit facility capacity plus cash, and the denominator of which is the total amount that may be borrowed under the company's revolving credit facility. The unobservable input "Spread Comparison" is a comparison of the spread over LIBOR for each investment to the spread over LIBOR for general leveraged loan transactions.

(2)

Each range represents the variance of outputs from calculating each statistic for each portfolio company within a specific credit seniority. The range may be a single data point when there is only one company represented in a specific credit seniority.

(3)

Inputs are weighted based on the fair value of the investments included in the range.

The table above does not include $3,024,889 of debt, equity and preferred shares which management values using other unobservable inputs, such as earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA multiples, as well as other qualitative information, including company specific information.

In accordance with ASC 820, the following table provides quantitative information about the Level 3 fair value measurements of the Company’s investments as of December 31, 2019. The weighted average calculations in the table below are based on the fair value balances for all debt related calculations for the particular input.

As of December 31, 2019

Fair

Valuation

Unobservable

Weighted

Value

Technique

Inputs ⁽¹⁾

Range ⁽²⁾

Average ⁽³⁾

First lien debt

224,772,281

Matrix Pricing

Senior Leverage

2.33x - 7.55x

4.89x

Total Leverage

3.10x - 9.79x

6.07x

Interest Coverage

1.14x - 4.80x

2.10x

Debt Service Coverage

0.93x - 3.68x

1.76x

TEV Coverage

1.27x - 5.70x

2.42x

Liquidity

5.75% - 587.90%

141.43%

Spread Comparison

275bps - 650bps

435bps

Second lien debt

20,071,929

Matrix Pricing

Senior Leverage

4.60x - 7.06x

5.87x

Total Leverage

4.60x - 7.06x

5.88x

Interest Coverage

1.54x - 3.21x

2.17x

Debt Service Coverage

1.38x - 2.86x

1.89x

TEV Coverage

1.52x - 2.44x

1.98x

Liquidity

52.00% - 347.60%

149.91%

Spread Comparison

675bps - 1025bps

764bps

Total

244,844,210

(1)

(2)

(3)

Inputs are weighted based on the fair value of the investments included in the range.

The table above does not include $4,608,380 of debt, equity and preferred shares which management values using other unobservable inputs, such as EBITDA and EBITDA multiples, as well as other qualitative information, including company specific information.

Fair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in market yields, discounts rate, leverage, EBITDA or EBITDA multiples (or revenue or revenue multiples), each in isolation, may change the fair value of certain of the Company’s investments. Generally, an increase or decrease in market yields, discount rates or leverage or an increase/decrease in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a corresponding decrease or increase, respectively, in the fair value of certain of the Company’s investments.

The following tables provide the changes in fair value, broken out by security type, during the nine months ended September 30, 2020 and 2019 for all investments for which the Company determines fair value using unobservable (Level 3) factors.

Nine Months Ended September 30, 2020	First lien debt			Second lien debt			Equity and Preferred Shares		Total
Fair Value as of December 31, 2019	$	227,392,535		$	21,340,798		$	719,257	$	249,452,590
Transfers into Level 3		15,434,694			-			-		15,434,694
Transfers out of Level 3		(71,237,159	)		(2,973,750	)		-		(74,210,909	)
Total gains:
Net realized loss^(a)		(1,221,555	)		-			-		(1,221,555	)
Net unrealized (depreciation) appreciation^(b)		(1,110,239	)		(76,159	)		85,682		(1,100,716	)
New investments, repayments and settlements:^(c)
Purchases		13,199,175			7,709,688			-		20,908,863
Settlements/repayments		(21,689,548	)		(472,222	)		-		(22,161,770	)
Net amortization of premiums, PIK, discounts and fees		253,400			15,834			-		269,234
Sales		(4,739,437	)		-			-		(4,739,437	)
Fair Value as of September 30, 2020	$	156,281,866		$	25,544,189		$	804,939	$	182,630,994

	(a)	Included in net realized loss on the accompanying Statement of Operations for the nine months ended September 30, 2020.

	(b)	Included in net change in unrealized depreciation on the accompanying Statement of Operations for the nine months ended September 30, 2020.

(c)

Includes increases in the cost basis of investments resulting from portfolio investments, the amortization of discounts, and PIK, as well as decreases in the costs basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs and other cost-basis adjustments.

Nine Months Ended September 30, 2019	First lien debt			Second lien debt			Equity and Preferred Shares			Total
Fair Value as of December 31, 2018	$	124,975,467		$	17,044,607		$	-		$	142,020,074
Transfers into Level 3		59,681,933			1,503,750			-			61,185,683
Transfers out of Level 3		(18,817,071	)		(1,483,125	)		-			(20,300,196	)
Total gains:
Net realized gain^(a)		99,771			5,476			-			105,247
Net unrealized (depreciation) appreciation^(b)		(267,439	)		44,955			(400,268	)		(622,752	)
New investments, repayments and settlements:^(c)
Purchases		41,582,955			2,192,231			800,535			44,575,721
Settlements/repayments		(26,036,040	)		(2,000,000	)		-			(28,036,040	)
Net amortization of premiums, PIK, discounts and fees		170,738			7,891			-			178,629
Sales		(499,500	)		-			-			(499,500	)
Fair Value as of September 30, 2019	$	180,890,814		$	17,315,785		$	400,267		$	198,606,866

	(a)	Included in net realized gain on the accompanying Statement of Operations for the nine months ended September 30, 2019.

	(b)	Included in net change in unrealized depreciation on the accompanying Statement of Operations for the nine months ended September 30, 2019.

(c)

The change in unrealized value attributable to investments still held at September 30, 2020 and 2019 were $(1,542,355) and $(949,494), respectively.

Investment Activities

The Company held a total of 202 investments with an aggregate fair value of $341,488,783 as of September 30, 2020. During the nine months ended September 30, 2020, the Company invested in 40 new investments for a combined $39,542,336 and in existing investments for a combined $12,834,005. The Company also received $27,907,668 in repayments from investments and $6,437,456 from investments sold during the nine months ended September 30, 2020.

The Company held a total of 176 investments with an aggregate fair value of $330,874,911 as of December 31, 2019. During the nine months ended September 30, 2019, the Company invested in 54 new investments for a combined $90,412,665 and in existing investments for a combined $20,244,318. The Company also received $46,240,554 in repayments from investments and $5,017,964 from investments sold during the nine months ended September 30, 2019.

Investment Concentrations

As of September 30, 2020, the Company’s investment portfolio consisted of investments in 174 companies located in 35 states across 22 different industries, with an aggregate fair value of $341,488,783. The five largest investments at fair value as of September 30, 2020 totaled $21,213,433 or 6.21% of the Company’s total investment portfolio as of such date. As of September 30, 2020, the Company’s average investment was $1,733,010 at cost.

As of December 31, 2019, the Company’s investment portfolio consisted of investments in 164 companies located in 33 states across 22 different industries, with an aggregate fair value of $330,874,911. The five largest investments at fair value as of December 31, 2019 totaled $21,465,158 or 7.16% of the Company’s total investment portfolio as of such date. As of December 31, 2019, the Company’s average investment was $2,028,793 at cost.

The following table outlines the Company’s investments by security type as of September 30, 2020 and December 31, 2019:

	September 30, 2020										December 31, 2019
			Percentage of					Percentage of					Percentage					Percentage
			Total					Total					of Total					of Total
	Cost		Investments			Fair Value		Investments			Cost		Investments			Fair Value		Investments
First lien debt	$	318,377,852		90.95	%	$	310,785,990		91.01	%	$	310,257,401		93.25	%	$	308,814,856		93.33	%
Second lien debt		30,569,567		8.73	%		29,897,854		8.76	%		21,344,024		6.41	%		21,340,798		6.46	%
Total Debt Investments		348,947,419		99.68	%		340,683,844		99.77	%		331,601,425		99.66	%		330,155,654		99.79	%
Equity and Preferred Shares		1,120,581		0.32	%		804,939		0.23	%		1,120,581		0.34	%		719,257		0.21	%
Total Equity Investments		1,120,581		0.32	%		804,939		0.23	%		1,120,581		0.34	%		719,257		0.21	%
Total Investments	$	350,068,000		100.00	%	$	341,488,783		100.00	%	$	332,722,006		100.00	%	$	330,874,911		100.00	%

Investments at fair value consisted of the following industry classifications as of September 30, 2020 and December 31, 2019:

	September 30, 2020					December 31, 2019
			Percentage of					Percentage of
Industry	Fair Value		Total Investments			Fair Value		Total Investments
Healthcare & Pharmaceuticals	$	72,569,221		21.25	%	$	76,108,451		23.00	%
High Tech Industries		64,178,581		18.79			58,327,844		17.63
Services: Business		45,402,430		13.30			44,376,771		13.41
Chemicals, Plastics & Rubber		28,042,227		8.21			28,747,162		8.69
Services: Consumer		19,709,417		5.77			25,757,966		7.78
Aerospace & Defense		19,320,069		5.66			12,911,355		3.90
Banking, Finance, Insurance & Real Estate		15,581,549		4.56			10,766,682		3.25
Capital Equipment		10,096,648		2.96			7,720,891		2.33
Construction & Building		9,583,136		2.81			6,989,790		2.11
Containers, Packaging & Glass		8,793,240		2.57			7,941,602		2.40
Consumer Goods: Non-durable		8,079,292		2.37			8,472,022		2.56
Automotive		7,239,147		2.12			6,294,153		1.90
Wholesale		7,028,587		2.06			7,219,568