UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2025

 OR

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

Commission file number: 814-01399

Star Mountain Lower Middle-Market Capital Corp.

(Exact Name of Registrant as Specified in its Charter)

Delaware	86-3924884
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

140 E. 45th Street, 37th Floor New York, NY	10017
(Address of Principal Executive Office)	(Zip Code)

(212) 810-9044

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former name or former address, if changed since last report)

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

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
None	N/A	N/A

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

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

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

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 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 ☒

As of May 15, 2025, the registrant had 10,068,053 shares of common stock, $0.001 par value, outstanding.

Table of Contents

		Page
Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of March 31, 2025 (Unaudited) and December 31, 2024	3
	Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 (Unaudited)	4
	Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2025 and 2024 (Unaudited)	5
	Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (Unaudited)	6
	Consolidated Schedules of Investments as of March 31, 2025 (Unaudited) and December 31, 2024	7
	Notes to Consolidated Financial Statements (Unaudited)	17
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	43
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	52
Item 4.	Controls and Procedures	53
Part II	OTHER INFORMATION
Item 1.	Legal Proceedings	53
Item 1A.	Risk Factors	53
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3.	Defaults Upon Senior Securities	53
Item 4.	Mine Safety Disclosures	53
Item 5.	Other Information	53
Item 6.	Exhibits	54
Signatures		56

2

Part I. Financial Information

Item 1. Financial Statements.

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Statements of Assets and Liabilities

	March 31, 2025 (unaudited)			December 31, 2024
ASSETS
Non-controlled/non-affiliate investments at fair value (amortized cost of $327,785,158 and $325,265,220 as of March 31, 2025 and December 31, 2024, respectively)	$	324,202,946		$	326,959,520
Controlled/affiliate investments at fair value (amortized cost of $53,454,265 and $52,910,374 as of March 31, 2025 and December 31, 2024, respectively)		51,620,616			50,680,798
Cash		4,578,449			4,028,665
Interest receivable		4,652,720			3,887,028
Receivable for investments sold		4,306,473			-
Deferred financing cost		2,016,186			2,169,211
Prepaid expenses		2,004			6,748
Paydown receivable		-			341,471
Total assets		391,379,394			388,073,441
LIABILITIES
Credit facility payable		122,300,000			122,500,000
Subscriptions received in advance		8,765,989			-
Redemptions payable		6,290,542			5,637,890
Deferred tax liabilities		6,144,344			6,094,196
Incentive fees payable (Note 6)		3,680,126			2,813,724
Credit facility interest payable		2,268,985			2,267,199
Other payables		1,621,292			900,145
Management fees payable (Note 6)		1,345,156			1,157,509
Professional fees payable		329,197			434,744
Reimbursement expense payable		177,329			77,275
Legal fees payable		74,897			37,883
Due to feeder fund		22,720			-
Distributions payable		-			5,322,771
Total liabilities		153,020,577			147,243,336
Commitments and contingencies (Note 11)
Net assets	$	238,358,817		$	240,830,105
NET ASSETS
Common shares, $0.001 par value (200,000,000 shares authorized, 9,710,243 and 9,857,301 shares issued and outstanding as of March 31, 2025 and December 31, 2024 respectively)	$	9,711		$	9,858
Additional paid-in capital		243,003,489			246,622,366
Accumulated undistributed (overdistributed) earnings		(4,654,383	)		(5,802,119	)
Total net assets	$	238,358,817		$	240,830,105
Net asset value per share	$	24.55		$	24.43

See accompanying notes.

3

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Statements of Operations

 (Unaudited)

	For the three months ended March 31,
	2025			2024
Non-controlled/non-affiliate investment income:
Interest income	$	8,034,188		$	10,740,990
PIK interest income		839,888			1,425,439
Dividend income		221,307			-
Other income		178,187			137,528
Controlled/affiliate investment income:
Interest income		862,309			107,726
PIK interest income		211,436			45,103
Total investment income:		10,347,315			12,456,786
Operating expenses:
Interest and other financing fees		2,541,777			3,741,191
Management fees (Note 6)		1,187,647			1,152,067
Professional fees		598,046			380,352
Incentive fees (Note 6)		866,402			1,225,518
General and administrative fees		260,380			130,021
Legal expenses		86,060			81,518
Director expenses		35,000			23,620
Total expenses		5,575,312			6,734,287
Net investment income before taxes		4,379,726			5,722,499
Income tax expense		557,415			-
Net Investment Income		4,214,588			5,722,499
Net gain (loss):
Net realized gain (loss):
Non-controlled/non-affiliate investments		1,863,881			-
Net realized gain (loss) on investments		1,863,881			-
Net change in unrealized gain (loss):
Non-controlled/non-affiliate investments		(5,276,512	)		(2,933,195	)
Controlled/affiliate investments		395,927			(384,530	)
Net change in unrealized gain (loss) on investments		(4,880,585	)		(3,317,725	)
Net gain (loss)		(3,016,704	)		(3,317,725	)
Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments		(50,148	)		-
Net increase (decrease) in net assets resulting from operations	$	1,147,736		$	2,404,774
Per common share data:
Net investment income per share - basic and diluted	$	0.42		$	0.74
Net increase (decrease) in net assets resulting from operations per share - basic and diluted	$	0.12		$	0.31
Weighted average shares outstanding - basic and diluted		9,927,237			7,764,315

See accompanying notes.

4

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Statements of Changes in Net Assets

(Unaudited)

	Common Stock									Accumulated undistributed
For the three months ended March, 2024	Number of shares			Par value of shares			Additional paid- in capital			(overdistributed) earnings			Total net assets
Balance, December 31, 2023		7,687,482		$	7,688		$	191,535,145		$	(1,082,244	)	$	190,460,589
Net investment income		-			-			-			5,722,499			5,722,499
Net change in unrealized gain (loss) on investments		-			-			-			(3,317,725	)		(3,317,725	)
Contribution receivable		-			-			110,891			-			110,891
Purchases of shares in repurchase offer		(192,187	)		(192	)		(4,823,752	)		-			(4,823,944	)
Stock issued in connection with dividend reinvestment plan		120,133			120			3,000,701			-			3,000,821
Balance, March 31, 2024		7,615,428		$	7,616		$	189,822,985		$	1,322,530		$	191,153,131
For the three months ended March, 2025
Balance, December 31, 2024		9,857,301		$	9,858		$	246,622,366		$	(5,802,119	)	$	240,830,105
Net investment income		-			-			-			4,214,588			4,214,588
Net realized gain (loss)		-			-			-			1,863,881			1,863,881
Net change in unrealized gain (loss) on investments		-			-			-			(4,880,585	)		(4,880,585	)
Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments		-			-			-			(50,148	)		(50,148	)
Purchase of shares in repurchase offer		(256,233	)		(256	)		(6,290,286	)		-			(6,290,542	)
Stock issued in connection with dividend reinvestment plan		109,175			109			2,671,409			-			2,671,518
Balance, March 31, 2025		9,710,243		$	9,711		$	243,003,489		$	(4,654,383	)	$	238,358,817

See accompanying notes.

5

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Statements of Cash Flows

(Unaudited)

	For the three months ended March 31,
	2025			2024
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	1,147,736		$	2,404,774
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized (gain) loss on investments		(1,863,881	)		-
Net change in unrealized (gain) loss on investments		4,880,585			3,317,725
Net accretion of discounts and amortization of premiums		(775,181	)		(561,124	)
Purchases of investments		(18,522,548	)		(789,898	)
Proceeds from sales of investments		26,948			-
Proceeds from principal payments		15,157,155			23,305,664
Amortization of deferred financing costs		137,400			140,521
Payment-in-kind interest income		(1,051,324	)		(1,470,542	)
Changes in operating assets and liabilities:
Interest receivable		(765,692	)		(915,343	)
Prepaid expenses		4,744			-
Management fees payable (Note 6)		187,647			30,655
Incentive fees payable (Note 6)		866,402			1,225,518
Credit facility interest payable		1,786			(262,881	)
Professional fees payable		(105,547	)		247,185
Deferred tax liabilities		50,148			-
Other payables		721,147			(22,840	)
Legal fees payable		37,014			36,518
Reimbursement expense payable		100,054			(42,729	)
Due to feeder fund		22,720			-
Net cash provided by (used in) operating activities		257,313			26,643,203
Cash flows from financing activities:
Proceeds from issuance of common shares, including subscriptions received in advance		8,765,989			6,246,250
Payments in repurchase of shares		(5,637,890	)		(4,651,898	)
Proceeds from credit facility		19,300,000			-
Repayments of credit facility		(19,500,000	)		(27,000,000	)
Distributions paid		(2,651,253	)		(2,961,399	)
Deferred financing and debt issuance costs paid		15,625			-
Net cash provided by (used in) financing activities		292,471			(28,367,047	)
Net increase (decrease) in Cash		549,784			(1,723,844	)
Cash, beginning of period		4,028,665			5,045,540
Cash, end of period	$	4,578,449		$	3,321,696
Supplemental disclosures of cash flow information:
Non cash operating activities:
Interest received in kind	$	1,051,324		$	1,470,542
Supplemental and non cash financing activities:
Shares issued from dividend reinvestment plan (see Note 10)	$	2,671,518		$	3,000,821
Supplemental Information:
Cash paid for interest	$	2,138,727		$	3,548,264

See accompanying notes.

6

 STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Schedule of Investments

March 31, 2025

 (Unaudited)

Portfolio Company (1)(2)(3)(4)(5)(6)	Footnotes		Spread Above Index (7)	Interest Rate	Acquisition Date	Maturity	Principal, Shares, Units		Amortized Cost (8)		Fair Value (9)		% of Net Assets
Investments
Non-controlled/non-affiliate investments
First lien senior secured term loan
Aerospace & Defense
Consolidated Machine & Tool Holdings, LLC		(17)(19)(22)	S+11.01%	15.33%	1/15/2020	1/15/2025		7,387,121	$	7,209,420	$	6,433,911		7.7	%
Consolidated Machine & Tool Holdings, LLC		(17)(18)(19)(22)	S+12.01%	16.60% PIK	3/21/2025	1/15/2025		80,511		78,902		72,194		0.0
Consolidated Machine & Tool Holdings, LLC		(13)(19)(22)	-	20.00% PIK	11/22/2023	1/15/2025		708,154		697,699		708,154		0.3
Consolidated Machine & Tool Holdings, LLC		(13)(19)	-	11.00%	5/22/2024	6/30/2025		885,615		870,375		794,132		0.3
								9,061,401		8,856,396		8,008,391		8.3
Chemicals
Douglas Products and Packaging Company, LLC		(10)(16)	S+8.04%	12.33%	9/20/2023	9/20/2028		14,775,000		14,655,180		14,775,000		6.2
								14,775,000		14,655,180		14,775,000		6.2
Commercial Services & Supplies
Swyft AcquireCo LLC (dba Swyft Filings)		(15)(16)	S+2.75%	7.04%	12/20/2021	12/20/2027		290,744		290,226		290,046		0.1
Swyft AcquireCo LLC (dba Swyft Filings)		(10)(16)	S+7.68%	11.97%	12/20/2021	12/20/2027		3,682,383		3,647,028		3,510,784		1.5
								3,973,127		3,937,254		3,800,830		1.6
Construction & Engineering
DCCM, LLC		(17)	S+ 6.76% Cash + 1.00% PIK	11.08% Cash + 1.00% PIK	8/6/2021	12/30/2026		18,086,870		17,907,510		18,085,062		7.6
Fremont-Wright, LLC		(16)	S +9.10%	13.39%	12/2/2020	6/30/2025		4,127,104		4,127,104		4,127,104		1.7
Kassel Mechanical, LLC		(16)	S + 7.18% Cash + 0.82% PIK	11.47% Cash + 0.82% PIK	3/17/2025	10/1/2029		12,500,000		12,312,500		12,312,500		5.2
Kelso Industries		(17)	S + 5.75%	10.07%	12/31/2024	12/31/2029		9,181,146		9,010,131		9,181,146		3.9
Kelso Industries		(17)(18)	S + 5.75%	10.07%	3/12/2025	12/30/2029		1,168,204		1,034,408		1,168,210		0.5
MechanAir, LLC		(17)	S + 5.42% Cash + 4.18% PIK	9.74% Cash + 4.18% PIK	9/2/2021	9/2/2026		13,239,867		13,130,773		13,070,396		5.5
MechanAir, LLC		(13)	-	18.00% PIK	12/15/2023	9/2/2026		532,014		532,014		517,650		0.2
Versar Inc.		(10)(17)	S + 8.10%	12.42%	8/4/2023	8/4/2028		10,000,000		9,700,183		10,032,000		4.2
Vertical Mechanical Group, LLC		(10)(17)	S + 9.25%	13.57%	5/12/2023	5/12/2028		7,428,571		7,257,283		7,428,571		3.1
								76,263,776		75,011,906		75,922,639		31.9
Distributors
48forty Intermediate Holdings, Inc.		(16)	2.50% Cash + S + 3.60% PIK	2.50%Cash + 7.89% PIK	10/11/2022	11/30/2029		15,119,734		14,695,849		11,503,094		4.8
								15,119,734		14,695,849		11,503,094		4.8
Diversified Telecommunication Services
Gridsource Incorporated, LLC		(17)	S + 6.50	10.82%	12/16/2022	3/9/2028		14,142,463		13,851,207		14,142,463		5.9
								14,142,463		13,851,207		14,142,463		5.9
Electrical Equipment
Masterwork Electronics, Inc.		(17)(19)(22)	S + 7.65%	11.97% PIK	11/17/2022	11/17/2027		8,840,576		8,676,757		2,108,477		0.9
Masterwork Electronics, Inc.		(15)(17)(19)(22)	S + 7.65%	11.97% PIK	11/17/2022	11/17/2027		521,739		521,739		124,435		0.1
								9,362,315		9,198,496		2,232,912		1.0
Entertainment
Chicken Soup For The Soul, LLC		(16)(19)(23)	S + 8.60%	12.89%	10/29/2021	12/31/2023		6,380,856		6,380,856		1,681,994		0.7
Linden Research, Inc. (dba Linden Labs)		(10)(17)	S + 7.73% Cash + 3.54% PIK	12.05% Cash + 3.54% PIK	12/31/2020	12/31/2025		4,649,110		4,595,088		4,649,110		2.0
NW Entertainment, LLC		(17)	S + 7.76%	12.08%	11/4/2022	11/4/2027		6,203,121		6,113,694		6,088,983		2.6
								17,233,087		17,089,638		12,420,087		5.3
Healthcare Providers & Services
BB-HH Platform, Inc. (dba Preferred Care Home Health)		(10)(17)	S + 7.69% Cash + 1.82% PIK	12.01% Cash + 1.82% PIK	5/16/2023	5/16/2028		6,822,172		6,715,794		6,822,173		2.9
IPA Intermediate Co., LLC (dba Integrated Pain Associates)		(17)	S + 8.01%	12.33%	1/9/2023	1/9/2028		11,067,780		10,857,139		11,067,780		4.6
Klein Hersh, LLC		(10)(17)	-	3.94% Cash	4/27/2022	4/27/2028		17,438,041		16,883,185		14,606,103		6.1
								35,327,993		34,456,118		32,496,056		13.6
Hotels, Restaurants & Leisure
The Range NYC, LLC (dba Five Iron Golf)		(17)	S + 7.61%	11.93%	9/15/2022	9/15/2027		4,897,059		4,800,814		4,876,001		2.0
								4,897,059		4,800,814		4,876,001		2.0
Household Durables
SkyBell Technologies, Inc.		(19)(22)	0.00% Cash + 0.00% PIK	0.00% Cash + 0.00% PIK	12/13/2019	12/13/2024		4,597,307		4,534,241		3,723,819		1.6
								4,597,307		4,534,241		3,723,819		1.6
Household Products
Coop Home Goods LLC (dba Coop Home Goods)		(10)(17)	S + 8.76%	13.08%	6/18/2021	6/18/2026		4,373,103		4,349,125		4,373,103		1.8
								4,373,103		4,349,125		4,373,103		1.8
IT Services
CSI IT, LLC (dba Consulting Solutions)		(17)	S + 10.76%	15.08%	1/29/2021	1/29/2026		12,366,208		12,256,920		12,366,208		5.2
								12,366,208		12,256,920		12,366,208		5.2
Machinery
Texas Contract Manufacturing Group, Inc.		(17)	S + 12.11%	16.43%	4/27/2022	4/27/2027		4,529,452		4,481,482		4,036,195		1.7
								4,529,452		4,481,482		4,036,195		1.7
Media
PadSquad, LLC		(10)(17)	S + 6.82%	11.14%	3/30/2022	3/30/2027		2,704,113		2,678,285		2,685,725		1.1
Trailer Park Group Holdings LLC		(10)(17)	S + 7.71% + 2.07% PIK	12.03% Cash + 2.07% PIK	8/2/2021	8/2/2026		14,866,853		14,706,982		14,303,400		6.0
								17,570,966		17,385,267		16,989,125		7.1
Personal Products
Japonesque, LLC		(10)(17)	S + 9.60%	13.92%	11/23/2021	11/23/2026		4,374,124		4,336,026		4,374,124		1.8
								4,374,124		4,336,026		4,374,124		1.8
Professional Services
Jefferson Consulting Group, LLC		(10)(17)	S + 7.94%	12.26%	7/1/2024	7/1/2029		8,461,538		8,314,278		8,048,192		3.4
NSC Technologies, LLC		(10)(17)	S + 8.26%	12.58%	4/26/2019	10/26/2026		4,148,472		4,125,826		4,148,472		1.7
PQT Ayaquhs, LLC (dba WWC Global)		(17)	S + 7.36%	11.68%	8/1/2022	8/1/2027		3,878,629		3,834,866		3,878,629		1.6
Qualified Digital, LLC		(17)(18)	S + 7.00%	11.32%	7/30/2024	7/30/2029		19,074,286		11,925,916		12,066,678		5.1
								35,562,925		28,200,886		28,141,971		11.8
Specialty Retail
Clearview Systems, LLC (dba Rip-It)		(10)(17)	S + 4.15% Cash + 6.50% PIK	8.47% Cash + 6.50% PIK	10/11/2022	10/10/2027		6,814,742		6,729,601		6,814,742		2.9
								6,814,742		6,729,601		6,814,742		2.9
Trading Companies & Distributors
Ambient Enterprises Holdco LLC		(17)(18)	S + 5.75%	10.07%	12/31/2024	6/30/2030		6,420,779		6,319,157		6,319,157		2.7
Ambient Enterprises Holdco LLC		(17)(18)	S + 5.75%	10.07%	12/31/2024	6/30/2030		1,784,873		1,755,739		1,755,739		0.7
								8,205,652		8,074,896		8,074,896		3.4
Transportation Infrastructure
TCP Acquisition, LLC (dba HighStar Traffic)		(17)	S + 8.00%	12.32%	7/26/2022	7/26/2027		10,339,453		10,213,757		10,339,453		4.3
								10,339,453		10,213,757		10,339,453		4.3
Total first lien senior secured term loan										297,115,059		279,411,109		122.2

See accompanying notes.

7

 

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Schedule of Investments – (continued)

March 31, 2025

 (Unaudited)

Portfolio Company (1)(2)(3)(4)(5)(6)	Footnotes	Spread Above Index (7)	Interest Rate	Acquisition Date	Maturity	Principal, Shares, Units	Amortized Cost (8)		Fair Value (9)		% of Net Assets
Second lien senior secured loan
Professional Services
CorTech, LLC	(17)	S+6.35%	10.64%	3/13/2020	9/30/2025	6,105,053	$	6,075,937	$	6,044,612		2.5	%
						6,105,053		6,075,937		6,044,612		2.5
Total second lien term loan								6,075,937		6,044,612		2.5
Senior unsecured notes	(24)
Electrical Equipment
HH Masterwork Intermediate, Inc.	(19)(22)	-	17.00% PIK	11/17/2022	5/17/2028	2,067,881		2,033,098		-		0.0
						2,067,881		2,033,098		-		0.0
Total senior unsecured notes								2,033,098		-		0.0
Preferred equity securities	(12)(24)
Commercial Services and Supplies
Swyft Filings Holdings, LLC	(13)(20)(21)	-	8.00% PIK	12/20/2021	-	192,444		183,612		219,783		0.1
						192,444		183,612		219,783		0.1
Construction & Engineering
MechanAir Holdings, LLC	(13)(21)	-	13.50% PIK	9/2/2021	-	1,704		1,703,499		2,616,319		1.1
Vertical Mechanical Group Holdings, LLC	(21)	-	8.00% PIK	5/12/2023	-	185,714		1,857,143		5,112,714		2.1
						187,418		3,560,642		7,729,033		3.2
Diversified Telecommunication Services
Gridsource Holdings, LLC	(21)	-	8.00% PIK	3/9/2023	-	3,959,977		799,597		1,475,014		0.6
						3,959,977		799,597		1,475,014		0.6
Entertainment
NW Entertainment, LLC	(21)	-	10.00% PIK	11/4/2022	-	1,183		1,134,428		1,420,404		0.6
NW Entertainment, LLC		-	12.00% PIK	2/27/2025	-	826		531,143		665,351		0.3
						2,009		1,665,571		2,085,755		0.9
Healthcare Providers & Services
IPA Investors, LP (dba Integrated Pain Associates)	(21)	-	8.00% PIK	1/9/2023	-	2,081		2,156,467		1,985,696		0.8
						2,081		2,156,467		1,985,696		0.8
Media
PadSquad Holdings, LLC	(13)(21)	-	6.00% Cash + 6.00% PIK	3/30/2022	-	720,767		1,964,204		3,379,270		1.4
Trailer Park Group Holdings, LLC Class A-1 Units	(13)(21)	-	15.00% PIK	12/19/2023	-	40,888		73,599		110,402		0.0
Trailer Park Group Holdings LLC - Class A Units	(13)(21)	-	8.00% PIK	8/2/2021	-	371,822		367,108		492,850		0.2
						1,133,477		2,404,911		3,982,522		1.6
Professional Services
Hometown Holdings JV, LLC (dba BWG Strategy)	(13)(21)	-	8.00% Preferred Return	12/24/2020	-	666,667		659,761		877,600		0.4
JCFV Holdings, LLC	(21)	-	8.00% Preferred Return	7/1/2024	-	415,916		1,538,462		1,377,721		0.6
PQT Ayaquhs, LLC (dba WWC Global)	(13)(21)	-	10.50% PIK	8/1/2022	-	5,774		1,064,516		4,651,979		2.0
SPC QD SM, LP	(21)	-	-	7/30/2024	-	42		2,207,572		2,207,572		0.9
						1,088,399		5,470,311		9,114,872		3.9
Software
PureCars Technologies, LLC	(13)(21)	-	8.00% PIK	4/17/2019	-	592		267,013		279,078		0.1
						592		267,013		279,078		0.1
Total preferred equity securities								16,508,124		26,871,753		11.2
Warrants and other equity securities	(12)(24)
Aerospace & Defense
Consolidated Machine & Tool Holdings, LLC	(14)(21)	-	-	1/15/2020	-	127		142,485		-		0.0
Consolidated Machine & Tool Holdings, LLC		-	-	3/21/2025	-	49		-		-		0.0
Consolidated Machine & Tool Holdings, LLC		-	-	1/15/2020	-	1,178		-		32,148		0.0
						1,354		142,485		32,148		0.0
Commercial Services and Supplies
Swyft Filings Holdings, LLC	(13)(20)(21)	-	-	12/20/2021	-	1,015		-		-		0.0
						1,015		-		-		0.0
Construction & Engineering
DCCM, LLC	(21)	-	-	8/6/2021	-	897		939,949		3,527,855		1.5
Fremont-Wright, LLC		-	-	12/2/2020	-	2		-		972,068		0.4
						899		939,949		4,499,923		1.9
Distributors
48forty Intermediate Holdings, Inc.		-	-	10/11/2022	-	1,994		-		-		0.0
						1,994		-		-		0.0
Electrical Equipment
HH Masterwork Intermediate, Inc.	(19)	-	-	11/17/2022	-	190,019		-		-		0.0
						190,019		-		-		0.0
Entertainment
LRI Holdco, LLC (dba Linden Labs)	(21)	-	-	12/31/2020	-	1		-		168,677		0.1
LRI Holdco, LLC (dba Linden Labs)		-	-	12/31/2020	-	1		43,478		247,635		0.1
						2		43,478		416,312		0.2
Healthcare Providers & Services
Klein Hersh, LLC		-	-	4/27/2022	-	1,003		-		-		0.0
Nurses 24/7 Holdings, LLC	(21)	-	-	5/26/2023	-	182		419,877		166,856		0.1
						1,185		419,877		166,856		0.1
Hotels, Restaurants & Leisure
The Range NYC, LLC (dba Five Iron Golf)		-	-	9/15/2022	-	21,210		71,599		34,623		0.0
						21,210		71,599		34,623		0.0
Household Durables
SkyBell Technologies, Inc.		-	-	12/13/2019	-	1,917,813		-		-		0.0
						1,917,813		-		-		0.0
Household Products
CHG Parent Holding LLC (dba Coop Home Goods)	(21)	-	-	6/18/2021	-	535,714		535,714		895,357		0.4
						535,714		535,714		895,357		0.4
Machinery
Texas Contract Manufacturing Group, Inc.		-	-	4/27/2022	-	1,602		-		376,452		0.2
						1,602		-		376,452		0.2
Media
Channel Factory Holdings, LLC	(13)(21)	-	-	3/31/2025	-	594		-		1,045,654		0.4
						594		-		1,045,654		0.4
Professional Services
NSC Holdings, LLC	(21)	-	-	4/26/2019	-	111		271,262		441,174		0.2
PQT Ayaquhs, LLC (dba WWC Global)		-	-	8/1/2022	-	645		-		363,000		0.2
						756		271,262		804,174		0.4
Software
Proactive Dealer Holdings Parent, LLC	(21)	-	-	6/10/2024	-	445		730,271		730,271		0.3
						445		730,271		730,271		0.3
Total warrants and other equity securities								3,154,635		9,001,770		3.9
Fund investments
Diversified Financials
Madryn Select Opportunities, LP	(18)	-	-	1/4/2022	-	2,855,855		2,898,305		2,873,702		1.2
						2,855,855		2,898,305		2,873,702		1.2
Total fund investments								2,898,305		2,873,702		1.2
Total non-controlled/non-affiliate investments								327,785,158		324,202,946		141.0

See accompanying notes.

8

 

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Schedule of Investments – (continued)

March 31, 2025

 (Unaudited)

Portfolio Company (1)(2)(3)(4)(5)(6)	Footnotes	Spread Above Index (7)	Interest Rate	Acquisition Date	Maturity	Principal, Shares, Units	Amortized Cost (8)		Fair Value (9)		% of Net Assets
Controlled/affiliate investments
First lien senior secured term loan
Construction & Engineering
Watt Acquisition, LLC	(10)(11)(17)	S+8.68%	12.97% Cash + 5.57% PIK	4/15/2022	4/15/2027	2,610,126	$	2,586,399	$	2,491,887		1.0	%
						2,610,126		2,586,399		2,491,887		1.0
Diversified Telecommunication Services
Caregility Corporation	(11)(17)	-	7.00% Cash + 6.59% PIK	12/29/2021	1/31/2025	2,483,924		2,361,432		2,415,864		1.0
						2,483,924		2,361,432		2,415,864		1.0
Food Products
Uncle John’s Pride, LLC	(11)(16)	S+10.11%	14.40%	3/31/2022	3/31/2027	6,911,698		6,825,370		6,980,815		2.9
						6,911,698		6,825,370		6,980,815		2.9
Healthcare Providers & Services
Arrow Home Health, LLC (dba Acara Home Health)	(11)(17)	S+8.50%	12.82%	3/19/2021	3/19/2026	797,086		783,517		701,117		0.3
						797,086		783,517		701,117		0.3
Leisure Products
MPUSA, LLC (dba Mission)	(11)(17)	S+9.26%	13.58% Cash + 3.00% PIK	12/9/2021	12/9/2026	1,613,545		1,604,930		1,402,171		0.6
						1,613,545		1,604,930		1,402,171		0.6
Professional Services
Lasalle Staffing, LLC	(10)(11)(16)	S+8.19%	12.48%	2/15/2022	2/15/2027	7,225,785		7,137,432		7,225,785		3.1
						7,225,785		7,137,432		7,225,785		3.1
Trading Companies & Distributors
USBid Inc.	(10)(11)(17)	S+7.26%	11.58% PIK	11/3/2022	11/3/2027	2,565,821		2,535,589		2,339,516		1.0
						2,565,821		2,535,589		2,339,516		1.0
Total first lien senior secured term loan								23,834,669		23,557,155		9.9
Senior secured notes
Diversified Telecommunication Services
Caregility Corporation	(13)	8.00%	8.00% PIK	7/3/2023	-	429,780		429,780		417,402		0.2
						429,780		429,780		417,402		0.2
Total senior secured notes								429,780		417,402		0.2
Senior unsecured notes	(24)
Consumer Finance
Microf, LLC	(11)	S+10.85%	15.17%	3/29/2019	6/30/2025	3,714,429		3,689,745		3,699,200		1.6
						3,714,429		3,689,745		3,699,200		1.6
Total senior unsecured notes								3,689,745		3,699,200		1.6
Preferred equity securities	(12)(24)
Construction & Engineering
Watt Contracting Holdings, LLC	(11)(21)	-	15.00% PIK	4/15/2022	-	3,375		3,316,130		3,519,772		1.5
						3,375		3,316,130		3,519,772		1.5
Diversified Telecommunication Services
Caregility Corporation - Series A Units	(11)(13)	-	8.00% PIK	12/31/2022	-	151,018		1,646,318		1,095,535		0.6
Caregility Corporation - Series B Units	(11)(13)	-	8.00% PIK	7/3/2023	-	446,689		3,591,494		4,457,956		1.9
						597,707		5,237,812		5,553,491		2.5
Food Products
UJP Acquisition, LLC (dba Uncle John’s Pride)	(11)(13)(21)	-	8.00% PIK	3/31/2022	-	2,829,787		2,829,787		4,789,787		2.0
						2,829,787		2,829,787		4,789,787		2.0
Healthcare Providers & Services
Arrow Home Health, LLC (dba Acara Home Health) - Class A Units	(11)(21)	-	10.00% Preferred Return	3/19/2021	-	571,080		564,321		151,376		0.1
Arrow Home Health, LLC (dba Acara Home Health) - Class 1 Units	(11)(13)(21)	-	-	11/13/2023	-	56,005		56,005		112,010		0.0
						627,085		620,326		263,386		0.1
Leisure Products
TS-MP, LLC (dba Mission) - Class A-1	(21)	-	-	12/9/2021	-	69		1,928,409		-		0.0
TS-MP, LLC (dba Mission) - Class AA-1	(21)	-	-	12/10/2024	-	88		1,960,641		2,156,705		0.9
						157		3,889,050		2,156,705		0.9
Professional Services
Capone Holdings JV, LLC (dba LaSalle Staffing)	(11)(21)	-	8.00% Preferred Return	2/15/2022	-	4,000,000		4,000,000		6,720,000		2.8
						4,000,000		4,000,000		6,720,000		2.8
Trading Companies & Distributors
USBid Parent, LLC - Class A	(11)	-	-	11/3/2022	-	2,813		2,812,500		-		0.0
USBid Parent, LLC - Class C	(11)	-	10.00% PIK	11/2/2023	-	9,375		7,324		-		0.0
USBid Parent, LLC - Class C2	(11)	-	10.00% PIK	4/12/2024	-	600,000		468,750		516,000		0.2
USBid Parent, LLC - Class C3	(11)	-	10.00% PIK	4/12/2024	-	2,400,000		1,875,000		408,000		0.2
						12,188		5,163,574		924,000		0.4
Total preferred equity securities								25,056,679		23,927,141		10.2
Warrants and other equity securities	(12)(24)
Construction & Engineering
Watt Contracting Holdings, LLC	(11)(21)	-	-	4/15/2022	-	295		-		-		0.0
						295		-		-		0.0
Diversified Telecommunication Services
Caregility Corporation	(11)	-	-	12/29/2021	-	221,574		443,392		-		0.0
Caregility Corporation		-	-	12/29/2021	-	46,227		-		-		0.0
						267,801		443,392		-		0.0
Food Products
UJP Acquisition, LLC (dba Uncle John's Pride)	(11)(21)	-	-	3/31/2022	-	127,215		-		19,718		0.0
						127,215		-		19,718		0.0
Trading Companies & Distributors
USBid Parent, LLC	(11)	-	-	11/3/2022	-	204		-		-		0.0
						204		-		-		0.0
Total warrants and other equity securities								443,392		19,718		0.0
Total controlled/affiliate investments								53,454,265		51,620,616		21.7
TOTAL INVESTMENTS							$	381,239,423	$	375,823,562		162.9	%

See accompanying notes.

9

 

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Schedule of Investments – (continued)

March 31, 2025

 (Unaudited)

(1) All of the Company’s investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of the Company’s investments are issued by U.S. portfolio companies unless otherwise noted.

(2) All investments are non-controlled/non-affiliated investments as defined by the 1940 Act, unless otherwise noted. The 1940 Act classifies investments based on the level of control that the Company maintains in a particular portfolio company.

(3) All investments are co-investments made with the Company’s affiliates in accordance with the terms of the exemptive relief that the Company received from the U.S. Securities and Exchange Commission (the “SEC”), unless otherwise noted. See Note 6 “Transactions with Related Parties” in the accompanying notes to the consolidated financial statements.

(4) Unless otherwise indicated, all investments are considered Level 3 assets.

(5) Unless otherwise indicated, the Company’s portfolio companies are pledged as collateral supporting the amounts outstanding under the Secured Credit Facility (as defined herein).

(6) Except as otherwise noted, all of the Company’s portfolio company investments are subject to legal restrictions on sales.

(7) Loan contains a variable rate structure and may be subject to an interest rate floor. Variable rate loans bear interest at a rate that may be determined by reference to either the Secured Overnight Financing Rate (“SOFR” or “S”) or an alternate base rate which can include the Federal Funds Effective Rate or the Prime Rate, at the borrower’s option, and which reset periodically based on the terms of the loan agreement. Interest rates subject to SOFR are typically accompanied by a Credit Spread Adjustment (“CSA”).

(8) The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.

(9) Because there is no readily available market value for these investments, the fair value of each of these investments is determined in good faith using significant unobservable inputs by the Company’s board of directors (the “Board”) as required by the 1940 Act. See Note 4 “Fair Value Measurements” in the accompanying notes to the consolidated financial statements.

(10) The Company categorized its unitranche loans as First Lien Senior Secured Loans. The First Lien Senior Secured Loan is comprised of two components: a first out tranche (“First Out”) and last out tranche (“Last Out”). The Company syndicates the First Out tranche and retains the Last Out tranche. The First Out and Last Out tranches have the same maturity date. Interest disclosed reflects the contractual rate of First Lien Senior Secured Loan. The First Out tranche has priority as to the Last Out tranche with respect to payments of principal, interest and any amounts due thereunder. The Company may be entitled to receive additional interest as a result of the Agreement Among Lenders (“AAL”) entered into with the First Out lender. In exchange for the higher interest rate, the Last Out portion is at a greater risk of loss.

(11) As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” and may have “Control” of this portfolio company as the Company and/or its affiliated funds collectively owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). The Company’s investments in affiliates for the three months ended March 31, 2025 represented $51,620,616 of Fair Value and 21.6% of Net Assets of the Company. Transactions related to investments in “Controlled/Affiliate Investments” for the three months ended March 31, 2025 were as follows:

See accompanying notes.

10

 

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Schedule of Investments – (continued)

March 31, 2025

 (Unaudited)

Portfolio Company	Type of Investment	Amount of Realized Gain (Loss)		Amount of Interest or Dividends Credited to Income (a)			December 31, 2024 Value		Gross Additions (b)		Gross Reductions (c)			Transfers In/(Out) of Affiliates		Amount of Unrealized Gains (Loss)			March 31, 2025 Value
Arrow Home Health LLC (dba Acara Home Health)	First lien senior securred term loan	$	-	$	26,619		$	701,117	$	1,088	$	-		$	-	$	(1,088	)	$	701,117
	Preferred equity securities (571,080 shares)		-		-			151,376		-		-			-		-			151,376
	Preferred equity securities (56,005 shares)		-		-			112,010		-		-			-		-			112,010
Capone Holdings JV, LLC (dba LaSalle Staffing)	Preferred equity securities (4,000,000 shares)		-		-			6,700,000		-		-			-		20,000			6,720,000
Caregility Corporation	First lien senior securred term loan		-		64,975			2,438,069		57,270		-			-		(70,017	)		2,425,322
	Preferred equity securities (151,018 shares)		-		-			1,188,605		-		-			-		(93,070	)		1,095,535
	Preferred equity securities (446,689 shares)		-		-			4,368,416		-		-			-		89,540			4,457,956
	Warrants (267,801 units)		-		-			-		-		-			-		-			-
	Senior secured notes (420,322 units)		-		-			341,103		79,219		-			-		(12,378	)		407,944
Lasalle Staffing, LLC	First lien senior securred term loan		-		228,571			7,287,039		8,374		(25,000	)		-		(44,628	)		7,225,785
Microf, LLC	First lien senior securred term loan		-		(24,684)	)		3,427,073		287,760		(25,088	)		-		9,455			3,699,200
MPUSA, LLC (dba Mission)	First lien senior securred term loan		-		108,810			1,448,543		56,036		(11,843	)		-		(90,565	)		1,402,171
	Preferred equity securities (69 shares)		-		-			-		-		-			-		-			-
	Preferred equity securities (88 shares)		-		-			1,782,334		-		-			-		374,371			2,156,705
Uncle John's Pride, LLC	First lien senior securred term loan		-		261,444			6,999,302		11,168		(18,304	)		-		(11,351	)		6,980,815
UJP Acquisition, LLC (dba Uncle John's Pride)	Warrants and other equity securities (127,215 shares)		-		-			76,329		-		-			-		(56,611	)		19,718
	Preferred equity securities (2,829,787 shares)		-		-			4,532,872		-		-			-		256,915			4,789,787
USBid Inc.	First lien senior securred term loan		-		67,243			2,240,638		170,098		(84,897	)		-		13,677			2,339,516
USBid Inc.	Warrants and other equity securities (204 shares)		-		-			-		-		-			-		-			-
USBid Inc. - Class A Units	Preferred equity securities (2,813 shares)		-		-			-		-		-			-		-			-
USBid Inc. - Class C Units	Preferred equity securities (9,375 shares)		-		-			-		-		-			-		-			-
USBid Inc. - Class C2 Units	Preferred equity securities (600,000 shares)		-		-			504,000		-		-			-		12,000			516,000
USBid Inc. - Class C3 Units	Preferred equity securities (24,000,000 shares)		-		-			432,000		-		-			-		(24,000	)		408,000
Watt Acquisition, LLC	First lien senior securred term loan		-		129,331			2,430,200		38,010		-			-		23,677			2,491,887
Watt Contracting Holdings, LLC	Preferred equity securities (3,375 shares)		-		-			3,519,772		-		-			-		-			3,519,772
	Warrants and other equity securities (295 shares)		-		-			-		-		-			-		-			-
Total Affiliate Investments		$	-	$	862,309		$	50,680,798	$	709,023	$	(165,132	)	$	-	$	395,927		$	51,620,616

(a) Represents the total amount of interest, fees or dividends credited to income for the portion of the period an investment was included in the Affiliate category.

(b) Gross additions include increase in the cost basis of investments resulting from purchases, PIK interest or amortization of original issue discount.

(c) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

(12) Ownership of certain equity investments may occur through a holding company or partnership.

(13) Investment contains a fixed rate structure.

(14) The Company has received 46 units of incentive shares which have no Cost or Fair Value as of March 31, 2025.

(15) Interest disclosed reflects the contractual rate of the First Out tranche under the AAL.

(16) The interest rate on these loans is subject to 1 month SOFR, which was 4.32% as of March 31, 2025.

(17) The interest rate on these loans is subject to 3 month SOFR, which was 4.29% as of March 31, 2025.

(18) Positions have an aggregate unfunded commitment of $12,559,655 in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 11 “Commitments, Contingencies and Risks” in the accompanying notes to the consolidated financial statements.

(19) The investment is on non-accrual status. See Note 2 “Significant Accounting Policies”.

(20) The investment includes the fair value and amortized cost of 1,015 shares of common equity issued in conjunction with the preferred equity.

(21) Investment is held by a subsidiary of the Company. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s wholly-owned subsidiary.

(22) The investment does not accrue payment-in-kind (“PIK”) for the debt investment as of March 31, 2025. See Note 2. “Significant Accounting Policies”.

(23) Maturity date is under on-going negotiations with the portfolio company and other lenders, as applicable.

(24) All investments are non-income producing unless otherwise indicated.

See accompanying notes.

11

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Schedule of Investments

December 31, 2024

Portfolio Company (1)(2)(3)(4)(5)(6)	Footnotes	Spread Above Index (7)	Interest Rate	Acquisition Date	Maturity	Principal, Shares, Units		Amortized Cost (8)		Fair Value (9)		% of Net Assets
Investments
Non-controlled/non-affiliate investments
First lien senior secured term loan
Aerospace & Defense
Consolidated Machine & Tool Holdings, LLC	(17)(19)(22)	S+11.01%	15.32%	1/15/2020	1/15/2025		6,092,878	$	5,946,311	$	5,431,800		2.3	%
Consolidated Machine & Tool Holdings, LLC	(17)(19)(22)	S+12.01%	16.32%	1/19/2023	1/15/2025		1,294,243		1,263,109		1,153,818		0.5
Consolidated Machine & Tool Holdings, LLC	(13)(19)(22)	-	20.00% PIK	11/22/2023	1/15/2025		708,154		697,699		708,154		0.3
Consolidated Machine & Tool Holdings, LLC	(13)(19)	-	11.00%	5/22/2024	6/30/2025		885,615		869,176		777,659		0.3
							8,980,890		8,776,295		8,071,431		3.4
Chemicals
Douglas Products and Packaging Company, LLC	(10)(16)	S+6.90%	11.23%	9/20/2023	9/20/2028		14,812,500		14,623,342		14,812,499		6.2
							14,812,500		14,623,342		14,812,499		6.2
Commercial Services & Supplies
Swyft AcquireCo LLC (dba Swyft Filings)	(15)(16)	S+2.75%	7.08%	12/20/2021	12/20/2027		292,443		291,514		288,290		0.1
Swyft AcquireCo LLC (dba Swyft Filings)	(10)(16)	S+5.50%	9.83%	12/20/2021	12/20/2027		3,682,383		3,643,596		3,425,353		1.4
							3,974,826		3,935,110		3,713,643		1.5
Construction & Engineering
DCCM, LLC	(17)	S + 6.76% Cash + 1.00% PIK	11.07% Cash + 1.00% PIK	8/6/2021	12/30/2026		18,148,579		17,949,974		18,232,063		7.5
Fremont-Wright, LLC	(16)	S+9.10%	13.43%	12/2/2020	6/30/2026		4,155,709		4,155,654		4,155,709		1.7
Kelso Industries	(17)(18)	S+5.75%	10.06%	12/31/2024	12/30/2029		13,000,000		12,740,177		12,740,177		5.3
MechanAir, LLC	(17)	S+10.80%	10.57% Cash + 4.53% PIK	9/2/2021	9/2/2026		13,203,004		13,072,674		13,203,004		5.5
MechanAir, LLC	(13)	-	18.00% PIK	12/15/2023	9/2/2026		509,104		509,104		504,726		0.2
Versar Inc.	(10)(17)	S+8.10%	12.41%	8/4/2023	8/4/2028		10,000,000		9,658,174		9,996,000		4.2
Vertical Mechanical Group, LLC	(10)(17)	S+7.76%	12.07%	5/12/2023	5/12/2028		7,428,571		7,234,557		7,428,571		3.1
							66,444,967		65,320,314		66,260,250		27.5
Distributors
48forty Intermediate Holdings, Inc.	(16)	S + 5.10% PIK + 2.00% Cash	9.43% PIK + 2.00% Cash	10/11/2022	11/30/2029		14,817,041		14,323,723		13,163,459		5.5
							14,817,041		14,323,723		13,163,459		5.5
Diversified Telecommunication Services
Gridsource Incorporated, LLC	(17)	S + 8.50% Cash + 2.00% PIK	12.81% Cash + 2.00% PIK	12/16/2022	3/9/2028		14,104,180		13,779,867		13,894,028		5.8
							14,104,180		13,779,867		13,894,028		5.8
Electrical Equipment
Masterwork Electronics, Inc.	(17)(19)(22)	S+7.65%	11.96% PIK	11/17/2022	11/17/2027		8,840,576		8,676,598		5,410,433		2.2
Masterwork Electronics, Inc.	(15)(17)(19)(22)	S+7.65%	11.96% PIK	11/17/2022	11/17/2027		521,739		521,739		319,304		0.1
							9,362,315		9,198,337		5,729,737		2.3
Entertainment
Chicken Soup For The Soul, LLC	(16)(19)(23)	S+8.60%	12.93%	10/29/2021	3/31/2024		6,380,856		6,380,856		1,681,994		0.7
Linden Research, Inc. (dba Linden Labs)	(10)(17)	S + 7.26% Cash + 3.25% PIK	11.57% Cash + 3.25% PIK	12/31/2020	12/31/2025		4,702,225		4,630,079		4,702,225		2.0
NW Entertainment, LLC	(17)	S+7.76%	12.07%	11/4/2022	11/4/2027		6,235,769		6,135,904		6,175,905		2.6
							17,318,850		17,146,839		12,560,124		5.3
Healthcare Providers & Services
BB-HH Platform, Inc. (dba Preferred Care Home Health)	(10)(17)	S + 7.00% Cash + 1.50% PIK	11.31% Cash + 1.50% PIK	5/16/2023	5/16/2028		6,791,230		6,694,095		6,791,230		2.8
IPA Intermediate Co., LLC (dba Integrated Pain Associates)	(17)	S+8.01%	12.32%	1/9/2023	1/9/2028		11,096,086		10,864,449		11,096,086		4.6
Klein Hersh, LLC	(10)(17)	S+7.76%	4.49% Cash	4/27/2022	4/27/2027		17,468,922		16,895,893		14,530,649		6.0
Nurses Staffing, LLC (dba Nurses 24/7)	(17)	S + 7.00% Cash + 3.00% PIK	11.31% Cash + 3.00% PIK	5/26/2023	8/26/2028		5,787,937		5,684,377		5,665,232		2.4
							41,144,175		40,138,814		38,083,197		15.8
Hotels, Restaurants & Leisure
The Range NYC, LLC (dba Five Iron Golf)	(17)(18)	S+7.61%	11.92%	9/15/2022	9/15/2027		4,928,571		4,819,417		4,876,329		2.0
							4,928,571		4,819,417		4,876,329		2.0
Household Durables
SkyBell Technologies, Inc.	(19)(22)	0.00% Cash + 0.00% PIK	0.00% Cash + 0.00% PIK	12/13/2019	12/13/2024		4,597,307		4,534,757		3,057,209		1.3
							4,597,307		4,534,757		3,057,209		1.3
Household Products
Coop Home Goods LLC (dba Coop Home Goods)	(10)(17)	S+8.26%	12.57%	6/18/2021	6/18/2026		4,373,103		4,339,971		4,373,103		1.8
							4,373,103		4,339,971		4,373,103		1.8
IT Services
CSI IT, LLC (dba Consulting Solutions)	(17)	S+10.76%	15.07%	1/29/2021	1/29/2026		12,558,929		12,433,640		12,558,929		5.2
							12,558,929		12,433,640		12,558,929		5.2
Machinery
Texas Contract Manufacturing Group, Inc.	(17)	S+12.11%	16.42%	4/27/2022	4/27/2027		4,605,541		4,547,261		3,968,595		1.6
							4,605,541		4,547,261		3,968,595		1.6
Media
PadSquad, LLC	(10)(17)	S+5.50%	9.81%	3/30/2022	3/30/2027		2,704,113		2,676,832		2,704,113		1.1
Trailer Park Group Holdings LLC	(10)(17)	S + 6.76% + 1.50% PIK	11.07% Cash + 1.50% PIK	8/2/2021	8/2/2026		14,790,995		14,572,105		14,517,362		6.0
							17,495,108		17,248,937		17,221,475		7.1
Personal Products
Japonesque, LLC	(10)(17)	S+8.18%	12.49%	11/23/2021	11/23/2026		4,404,301		4,360,968		4,404,301		1.8
							4,404,301		4,360,968		4,404,301		1.8
Professional Services
Jefferson Consulting Group, LLC	(10)(17)	S+5.75%	10.06%	7/1/2024	7/1/2029		8,461,538		8,303,804		8,303,804		3.4
NSC Technologies, LLC	(10)(17)	S+8.26%	12.57%	4/26/2019	10/26/2026		4,148,472		4,121,315		4,117,773		1.7
PQT Ayaquhs, LLC (dba WWC Global)	(17)	S+7.26%	11.78%	8/1/2022	8/1/2027		7,409,274		7,311,194		7,483,367		3.1
Qualified Digital, LLC	(17)(18)	S+7.00%	11.31%	7/30/2024	7/30/2029		9,097,143		8,793,352		8,793,352		3.7
							29,116,427		28,529,665		28,698,296		11.9
Specialty Retail
Clearview Systems, LLC (dba Rip-It)	(10)(17)	S+ 10.65%	14.96% Cash + 6.50% PIK	10/11/2022	10/10/2027		6,703,118		6,609,366		6,703,118		2.8
							6,703,118		6,609,366		6,703,118		2.8
Trading Companies & Distributors
Ambient Enterprises Holdco LLC	(17)(18)	S+5.75%	10.07%	12/31/2024	6/30/2030		6,436,872		6,327,097		6,327,097		2.6
Ambient Enterprises Holdco LLC	(17)(18)	S+5.75%	10.07%	12/31/2024	6/30/2030		1,789,397		1,758,861		1,758,861		0.7
							8,226,269		8,085,958		8,085,958		3.3
Transportation Infrastructure
TCP Acquisition, LLC (dba HighStar Traffic)	(17)	S+7.50%	11.81%	7/26/2022	7/26/2027		10,339,453		10,193,719		10,339,453		4.3
							10,339,453		10,193,719		10,339,453		4.3
Total first lien senior secured term loan									292,946,300		280,575,134		116.4

See accompanying notes.

12

STAR MOUNTAIN LOWER MIDDLE-MARKET CAPITAL CORP.

Consolidated Schedule of Investments – (continued)

December 31, 2024

Portfolio Company (1)(2)(3)(4)(5)(6)	Footnotes	Spread Above Index (7)	Interest Rate	Acquistion Date	Maturity	Principal, Shares, Units		Amortized Cost (8)		Fair Value (9)		% of Net Assets
Second lien senior secured loan
Professional Services
CorTech, LLC	(17)	S+6.35%	10.66%	3/13/2020	9/30/2025		6,155,951	$	6,148,061	$	6,034,048		2.5	%
							6,155,951		6,148,061		6,034,048		2.5
Total second lien term loan									6,148,061		6,034,048		2.5
Senior unsecured notes	(24)
Electrical Equipment
HH Masterwork Intermediate, Inc.	(19)(22)	-	17.00% PIK	11/17/2022	5/17/2028		2,155,820		2,033,098		-		0.0
							2,155,820		2,033,098		-		0.0
Total senior unsecured notes									2,033,098		-		0.0
Preferred equity securities	(12)(24)
Commercial Services and Supplies
Swyft Filings Holdings, LLC	(13)(20)(21)	-	8.00% PIK	12/20/2021	-		192,444		183,612		194,996		0.1
							192,444		183,612		194,996		0.1
Construction & Engineering
MechanAir Holdings, LLC	(13)(21)	-	13.50% PIK	9/2/2021	-		1,704		1,703,499		2,193,365		0.9
Vertical Mechanical Group Holdings, LLC	(21)	-	-	5/12/2023	-		185,714		1,857,143		4,828,571		2.0
							187,418		3,560,642		7,021,936		2.9
Diversified Telecommunication Services
Gridsource Holdings, LLC	(21)	-	8.00% PIK	3/9/2023	-		3,959,977		799,597		907,386		0.4
							3,959,977		799,597		907,386		0.4
Entertainment