UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-Q

Quarterly Schedule of Portfolio Holdings of

Registered Management Investment Company

Investment Company Act file number 811-05531

Barings Participation Investors

(Exact name of registrant as specified in charter)

1500 Main Street, Springfield, MA 01115

(Address of principal executive offices) (Zip code)

Janice M. Bishop, Vice President, Secretary and Chief Legal Officer

Independence Wharf, 470 Atlantic Avenue, Boston, MA  02210

(Name and address of agent for service)

Registrant's telephone number, including area code: 413-226-1000

___________________

Date of fiscal year end: 12/31

___________________

Date of reporting period: 03/31/17

___________________

ITEM 1. SCHEDULE OF INVESTMENTS

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(Unaudited)

Corporate Restricted Securities - 81.47%: (A)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Private Placement Investments - 67.90%: (C)
1492 Acquisition LLC
A leading producer of premium Italian cured meats and deli meats in the U.S.
Limited Liability Company Unit Class A Preferred (B)	102 uts.		10/17/12		$	102,270	$	142,717
Limited Liability Company Unit Class A Common (B)	11,364 uts.		10/17/12			11,364		171,560
						113,634		314,277
ABC Industries, Inc.
A manufacturer of mine and tunneling ventilation products in the U.S.
13% Senior Subordinated Note due 07/31/2019	$	139,205	08/01/12			132,561		137,397
Preferred Stock Series A (B)	125,000 shs.		08/01/12			125,000		207,845
Warrant, exercisable until 2022, to purchase common stock at $.02 per share (B)	22,414 shs.		08/01/12			42,446		34,768
						300,007		380,010
Advanced Manufacturing Enterprises LLC
A designer and manufacturer of large, custom gearing products for a number of critical customer applications.
Limited Liability Company Unit (B)	1,945 uts.			*		207,910		—
* 12/07/12, 07/11/13 and 06/30/15.
AFC - Dell Holding Corporation
A distributor and provider of inventory management services for "C-Parts" used by OEMs in their manufacturing and production facilities.
12.5% (1% PIK) Senior Subordinated Note due 09/27/2020	$	1,206,338	03/27/15			1,189,518		1,218,401
Preferred Stock (B)	1,122 shs.		03/27/15			112,154		100,634
Common Stock (B)	346 shs.		03/27/15			346		—
						1,302,018		1,319,035
Airxcel Holdings
A leading manufacturer of a broad range of climate control solutions, including air-conditioners, heat pumps, cooking appliances, furnaces, powered vents, and water heaters.
Limited Liability Company Unit	288 uts.		11/18/14			288,000		330,562
AM Conservation Holding Corp.
A supplier of energy efficiency ("EE") products, including lighting, shower heads and aerators, and weatherization products such as door seals and weather stripping.
11.75% (1.5% PIK) Senior Subordinated Note due 04/30/2023	$	1,568,182	10/31/16			1,538,194		1,555,431
Common Stock (B)	156,818 shs.		10/31/16			156,818		166,628
						1,695,012		1,722,059

8

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
AMS Holding LLC
A leading multi-channel direct marketer of high-value collectible coins and proprietary-branded jewelry and watches.
Limited Liability Company Unit Class A Preferred (B)(F)	114 uts.		10/04/12		$	113,636	$	242,562
API Technologies Corp.
A designer, developer and manufacturer of electronic systems, subsystems, modules and secure communications for technically demanding defense, aerospace and commercial applications in the U.S. and internationally.
12% (1% PIK) Senior Subordinated Note due 04/22/2023	$	1,392,996	04/22/16			1,375,777		1,398,951
Limited Liability Company Unit (B)	0.40% int.		04/20/16			345,000		317,400
						1,720,777		1,716,351
ARI Holding Corporation
A leading national supplier of products used primarily by specialty contractors.
11.5% (0.5% PIK) Senior Subordinated Note due 02/01/2020	$	1,715,254		*		1,699,296		1,715,254
Limited Partnership Interest	524 uts.		08/01/14			523,950		543,507
* 05/21/13 and 08/01/14.						2,223,246		2,258,761
ASC Holdings, Inc.
A manufacturer of capital equipment used by corrugated box manufacturers.
13% (1% PIK) Senior Subordinated Note due 05/18/2021	$	750,555	11/19/15			738,492		713,350
Limited Liability Company Unit (B)	111,100 uts.		11/18/15			111,100		22,664
						849,592		736,014
Aurora Parts & Accessories LLC
A distributor of aftermarket over-the-road semi-trailer parts and accessories sold to customers across North America.
11% Senior Subordinated Note due 02/17/2022	$	1,515,400	08/17/15			1,491,464		1,537,688
Preferred Stock (B)	210 shs.		08/17/15			209,390		174,258
Common Stock (B)	210 shs.		08/17/15			210		—
						1,701,064		1,711,946
Avantech Testing Services LLC
A manufacturer of custom Non-Destructive Testing ("NDT") systems and provider of NDT and inspections services primarily to the oil country tubular goods market.
15% (3.75% PIK) Senior Subordinated Note due 01/31/2021 (D)	$	500,587	07/31/14			491,228		—
Limited Liability Company Unit (B)(F)	45,504 uts.			*		—		—
* 07/31/14 and 10/14/15.						491,228		—

9

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Blue Wave Products, Inc.
A distributor of pool supplies.
10% Senior Secured Term Note due 09/30/2018	$	119,149	10/12/12		$	118,413	$	119,149
13% (1% PIK) Senior Subordinated Note due 09/30/2019	$	332,244	10/12/12			321,061		332,244
Common Stock (B)	51,064 shs.		10/12/12			51,064		292,856
Warrant, exercisable until 2022, to purchase common stock at $.01 per share (B)	20,216 shs.		10/12/12			20,216		115,940
						510,754		860,189
BlueSpire Holding, Inc.
A marketing services firm that integrates strategy, technology, and content to deliver customized marketing solutions for clients in the senior living, financial services and healthcare end markets.
12.5% (1.5% PIK) Senior Subordinated Note due 06/30/2021 (D)	$	1,585,908	06/30/15			1,561,276		—
Common Stock (B)	1,417 shs.		06/30/15			156,800		—
						1,718,076		—
BP SCI LLC
A leading value-added distributor of branded pipes, valves, and fittings (PVF) to diversified end markets.
Limited Liability Company Unit Class A (B)(F)	417 uts.		10/17/12			41,667		63,483
Limited Liability Company Unit Class B (B)(F)	167 uts.		10/17/12			166,666		276,012
						208,333		339,495
CG Holdings Manufacturing Company
A coating provider serving the automotive, agricultural, heavy truck and other end markets.
13% Senior Subordinated Note due 11/01/2019	$	1,412,605		*		1,364,857		1,412,606
Preferred Stock (B)	1,350 shs.			*		134,972		172,542
Preferred Stock (B)	489 shs.			*		48,721		62,537
Common Stock (B)	140 shs.			*		14,864		198,995
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	58 shs.			*		5,430		82,656
* 05/09/13 and 11/01/13.						1,568,844		1,929,336
CHG Alternative Education Holding Company
A leading provider of publicly-funded, for profit pre-K-12 education services targeting special needs children at therapeutic day schools and "at risk" youth through alternative education programs.
13.5% (1.5% PIK) Senior Subordinated Note due 01/19/2018	$	782,813	01/19/11			775,014		782,813
14% (2% PIK) Senior Subordinated Note due 08/03/2019	$	206,034	08/03/12			204,341		206,034
Common Stock (B)	375 shs.		01/19/11			37,500		43,440
Warrant, exercisable until 2021, to purchase common stock at $.01 per share (B)	295 shs.		01/19/11			29,250		34,146
						1,046,105		1,066,433

10

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Church Services Holding Company
A provider of diversified residential services to homeowners in the Houston, Dallas, and Austin markets.
Limited Liability Company Unit (B)(F)	1 ut.		03/26/12		$	189,978	$	—
Clarion Brands Holding Corp.
A portfolio of six over-the-counter (OTC) pharmaceutical brands whose products are used to treat tinnitus or ringing of the ear, excessive sweating, urinary tract infections, muscle pain, and skin conditions.
12.5% (1.5% PIK) Senior Subordinated Note due 04/01/2021	$	2,031,027		*		2,000,797		2,037,991
Limited Liability Company Unit	1,853 uts.		07/18/16			189,267		184,336
* 10/01/14 and 07/18/16.						2,190,064		2,222,327
Clough, Harbour and Associates
An engineering service firm that is located in Albany, NY.
Preferred Stock (B)	147 shs.		12/02/08			146,594		765,870
Compass Chemical International LLC
A manufacturer and supplier of standard and specialty formulated chemicals, primarily phosphoric acid derivatives called phosphonates.
Limited Liability Company Unit (B)(F)	230 uts.		03/04/15			147,304		114,876
Connecticut Electric, Inc.
A supplier and distributor of electrical products sold into the retail and wholesale markets.
Limited Liability Company Unit Class A (B)	82,613 uts.		01/12/07			82,613		121,546
Limited Liability Company Unit Class C (B)	59,756 uts.		01/12/07			59,756		96,698
Limited Liability Company Unit Class D (B)	671,525 uts.		05/03/10			—		1,037,369
Limited Liability Company Unit Class E (B)	1,102 uts.		05/03/10			—		218,964
						142,369		1,474,577
CORA Health Services, Inc.
A provider of outpatient rehabilitation therapy services.
12.75% (1.75% PIK) Senior Subordinated Note due 06/30/2023	$	768,276	06/30/16			754,248		776,522
Common Stock Class A (B)	3,791 shs.		06/30/16			3,791		1,327
Preferred Stock Series A (B)	758 shs.		06/30/16			72,033		76,605
						830,072		854,454
CTM Holding, Inc.
A leading owner and operator of coin-operated children's rides, penny presses and candy kiosks in the U.S.
15% (3% PIK) Senior Subordinated Note due 11/22/2019	$	1,306,609	11/22/13			1,293,546		1,306,609
Common Stock (B)	90 shs.			*		514,284		363,700
* 11/22/13 and 09/16/16.						1,807,830		1,670,309

11

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Del Real LLC
A manufacturer and distributor of fully-prepared fresh refrigerated Hispanic entrees as well as side dishes that are typically sold on a heat-and-serve basis at retail grocers.
11% Senior Subordinated Note due 04/06/2023	$	1,420,588		10/07/16	$	1,393,657	$	1,400,938
Limited Liability Company Unit (B)(F)	304,412 uts.			10/07/16		304,412		301,368
						1,698,069		1,702,306
DPL Holding Corporation
A distributor and manufacturer of aftermarket undercarriage parts for medium and heavy duty trucks and trailers.
14% (2% PIK) Senior Subordinated Note due 11/04/2020	$	1,410,980		05/04/12		1,399,876		1,370,333
Preferred Stock (B)	25 shs.			05/04/12		252,434		241,837
Common Stock (B)	25 shs.			05/04/12		28,048		—
						1,680,358		1,612,170
Dunn Paper
A provider of specialty paper for niche product applications.
9.75% Second Lien Term Loan due 08/31/2023	$	1,725,000		09/28/16		1,692,826		1,690,500
Eagle Family Foods, Inc.
A producer of low-cost branded and private label canned milk.
10.05% Last Out Term Loan due 12/31/2021	$	1,725,000		12/22/15		1,704,520		1,725,000
ECG Consulting Group
A healthcare management consulting company who provides strategic, financial, operational, and technology related consulting services to healthcare providers.
11.75% (0.75% PIK) Senior Subordinated Note due 11/21/2020	$	1,316,816		11/21/14		1,296,486		1,329,984
Limited Liability Company Unit (B)(F)	230 uts.			11/19/14		71,875		83,423
						1,368,361		1,413,407
Elite Sportwear Holding, LLC
A designer and manufacturer of gymnastics, competitive cheerleading and swimwear apparel in the U.S. and internationally.
11.5% (1% PIK) Senior Subordinated Note due 10/13/2021	$	1,572,635		10/14/16		1,547,173		1,558,409
Limited Liability Company Unit (B)(F)	101 uts.			10/14/16		159,722		180,253
						1,706,895		1,738,662

12

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
ERG Holding Company LLC
A provider of inpatient and outpatient clinical trial services to pharmaceutical companies and contract research organizations.
13.5% (1.5% PIK) Senior Subordinated Note due 10/04/2019	$	972,981		04/04/14	$	962,744	$	982,711
14% (2% PIK) Senior Subordinated Note due 10/04/2019	$	255,782		07/01/16		251,702		263,455
Common Stock (B)	0.31% int.			04/04/14		77,533		86,549
						1,291,979		1,332,715
F F C Holding Corporation
A leading U.S. manufacturer of private label frozen novelty and ice cream products.
Limited Liability Company Unit Preferred (B)	171 uts.			09/27/10		58,345		81,925
Limited Liability Company Unit Common (B)	171 uts.			09/27/10		17,073		275,789
						75,418		357,714
F G I Equity LLC
A manufacturer of a broad range of filters and related products that are used in commercial, light industrial, healthcare, gas turbine, nuclear, laboratory, clean room, hotel, educational system, and food processing settings.
Limited Liability Company Unit Preferred (B)	80,559 uts.			04/15/14		—		80,559
Limited Liability Company Unit Class B-1 (B)	65,789 uts.			12/15/10		65,789		202,984
Limited Liability Company Unit Class B-2 (B)	8,248 uts.			12/15/10		8,248		25,448
Limited Liability Company Unit Class B-3 (B)	6,522 uts.			08/30/12		15,000		21,818
Limited Liability Company Unit Class C (B)	1,575 uts.			12/20/10		16,009		37,551
						105,046		368,360
FMH Holdings Corporation
A designer and manufacturer of highly engineered components for the aerospace, defense and space industries.
Common Stock (B)	148 shs.			05/01/15		148,096		261,232
GD Dental Services LLC
A provider of convenient "onestop" general, specialty, and cosmetic dental services with 21 offices located throughout South and Central Florida.
Limited Liability Company Unit Preferred (B)	76 uts.			10/05/12		75,920		104,347
Limited Liability Company Unit Common (B)	767 uts.			10/05/12		767		13,945
						76,687		118,292
GenNx Novel Holding, Inc.
A manufacturer and distributor of nutraceutical ingredients.
15% (1% PIK) Senior Subordinated Note due 03/27/2020	$	1,613,944		03/27/14		1,594,186		1,452,549
Common Stock (B)	15,500 shs.			03/27/14		155,000		47,910
						1,749,186		1,500,459

13

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
gloProfessional Holdings, Inc.
A marketer and distributor of premium mineral-based cosmetics, cosmeceuticals and professional hair care products to the professional spa and physician's office channels.
14% (2% PIK) Senior Subordinated Note due 03/27/2019	$	1,226,121		03/27/13	$	1,216,420	$	1,226,121
Common Stock (B)	1,181 shs.			03/27/13		118,110		128,735
						1,334,530		1,354,856
Glynlyon Holding Companies, Inc.
A technology-enabled curriculum provider of K-12 and support services predominantly to small and medium public school districts.
12% (1% PIK) Senior Subordinated Note due 01/05/2022	$	1,596,763		01/15/16		1,569,855		1,628,698
Common Stock (B)	147 shs.			01/15/16		147,436		218,547
						1,717,291		1,847,245
GlynnDevins Acquisition Corporation
A marketing communications agency that services senior living facilities.
Preferred Stock Series A (B)	342 shs.			06/19/15		70,683		79,601
Common Stock (B)	342 shs.			06/19/15		2,945		20,816
						73,628		100,417
Grakon Parent
The leading designer and manufacturer of highly-engineered and customized LED and incandescent lighting systems for transportation-based markets.
Common Stock (B)	175 shs.			10/31/14		174,831		157,693
GTI Holding Company
A designer, developer, and marketer of precision specialty hand tools and handheld test instruments.
12% Senior Subordinated Note due 02/05/2020	$	727,865		02/05/14		698,298		714,311
Common Stock (B)	846 shs.			02/05/14		84,636		55,407
Warrant, exercisable until 2024, to purchase common stock at $.01 per share (B)	397 shs.			02/05/14		36,816		26,001
						819,750		795,719
Handi Quilter Holding Company (Premier Needle Arts)
A designer and manufacturer of long-arm quilting machines and related components for the consumer quilting market.
12% (1% PIK) Senior Subordinated Note due 06/19/2021	$	1,725,311		*		1,698,538		1,724,747
Limited Liability Company Unit Preferred (B)	372 uts.			**		371,644		377,098
Limited Liability Company Unit Common Class A (B)	3,594 uts.			12/19/14		—		—
* 12/19/14 and 02/21/17.						2,070,182		2,101,845
** 12/19/14 and 04/29/16.

14

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Happy Floors Acquisition, Inc.
A wholesale importer and value-added distributor of premium European flooring tile to residential and commercial end markets.
12.5% (1% PIK) Senior Subordinated Note due 07/01/2022	$	1,587,346	07/01/16		$	1,558,762	$	1,599,645
Common Stock (B)	150 shs.		07/01/16			149,500		125,880
						1,708,262		1,725,525
Hartland Controls Holding Corporation
A manufacturer and distributor of electronic and electromechanical components.
14% (2% PIK) Senior Subordinated Note due 08/14/2020	$	1,111,911	02/14/14			1,100,237		1,111,911
12% Senior Subordinated Note due 08/14/2020	$	431,250	06/22/15			428,516		439,875
Common Stock (B)	821 shs.		02/14/14			822		212,516
						1,529,575		1,764,302
Healthcare Direct Holding Company
A direct-to-customer marketer of discount dental plans.
Common Stock (B)	517 shs.		03/09/12			21,419		91,608
HHI Group, LLC
A developer, marketer, and distributor of hobby-grade radio control products.
14% (2% PIK) Senior Subordinated Note due 01/17/2020	$	1,722,949	01/17/14			1,705,633		947,622
Limited Liability Company Unit (B)(F)	102 uts.		01/17/14			101,563		—
						1,807,196		947,622
Hollandia Produce LLC
A hydroponic greenhouse producer of branded root vegetables.
14.25% (2.75% PIK) Senior Subordinated Note due 12/11/2020	$	1,366,637		*		1,345,252		1,307,811
* 12/30/15 and 12/23/16.
HOP Entertainment LLC
A provider of post production equipment and services to producers of television shows and motion pictures.
Limited Liability Company Unit Class F (B)(F)	47 uts.		10/14/11			—		—
Limited Liability Company Unit Class G (B)(F)	114 uts.		10/14/11			—		—
Limited Liability Company Unit Class H (B)(F)	47 uts.		10/14/11			—		—
Limited Liability Company Unit Class I (B)(F)	47 uts.		10/14/11			—		—
						—		—

15

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Hospitality Mints Holding Company
A manufacturer of individually-wrapped imprinted promotional mints.
12% Senior Subordinated Note due 10/01/2018	$	1,098,837	08/19/08		$	1,095,422	$	1,038,730
Common Stock (B)	251 shs.		08/19/08			251,163		11,002
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	65 shs.		08/19/08			60,233		2,844
						1,406,818		1,052,576
HVAC Holdings, Inc.
A provider of integrated energy efficiency services and maintenance programs for HVAC systems.
12% (1% PIK) Senior Subordinated Note due 07/19/2022	$	1,131,643		*		1,119,572		1,131,643
Limited Liability Company Unit Class A Preferred (B)	1,127 uts.		09/27/12			112,726		169,495
Limited Liability Company Unit Class A Common (B)	910 uts.		09/27/12			910		104,304
* 7/19/16 and 9/6/16.						1,233,208		1,405,442
Ideal Tridon Holdings, Inc.
A designer and manufacturer of clamps and couplings used in automotive and industrial end markets.
Common Stock	93 shs.		10/27/11			77,462		174,798
Impact Confections
An independent manufacturer and marketer of confectionery products including Warheads® brand sour candies, Melster® brand classic candies, and co-manufactured/private label classic candies.
13% (1% PIK) Senior Subordinated Note due 11/10/2020	$	1,089,466	11/10/14			1,074,726		1,070,150
Common Stock (B)	2,300 shs.		11/10/14			230,000		117,456
						1,304,726		1,187,606
Insurance Claims Management, Inc.
A third party administrator providing auto and property claim administration services for insurance companies.
Common Stock (B)	47 shs.		02/27/07			1,424		104,566
Janus Group Holdings LLC
A manufacturer of roll-up doors and hallway systems that are primarily used in self-storage facilities.
Limited Liability Company Unit Class A (B)(F)	283 uts.		12/11/13			—		908,709
						—		908,709

16

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
JMH Investors LLC
A developer and manufacturer of custom formulations for a wide variety of foods.
Limited Liability Company Unit (B)(F)	1,038,805 uts.		12/05/12		$	232,207	$	—
Limited Liability Company Unit Class A-1 (B)(F)	163,043 uts.		10/31/16			163,043		163,043
Limited Liability Company Unit Class A-2 (B)(F)	1,032,609 uts.		10/31/16			—		—
						395,250		163,043
K N B Holdings Corporation
A designer, manufacturer and marketer of products for the custom framing market.
Common Stock (B)	71,053 shs.		05/24/06			71,053		47,170
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	43,600 shs.		05/25/06			37,871		28,945
						108,924		76,115
K P I Holdings, Inc.
The largest player in the U.S. non-automotive, non-ferrous die casting segment.
Limited Liability Company Unit Class C Preferred (B)	40 uts.		06/30/15			—		79,396
Common Stock (B)	353 shs.		07/15/08			285,619		81,537
						285,619		160,933
Kyjen Company
A designer and distributer of branded and private label dog toys and accessories primarily in the US.
13% (1% PIK) Senior Subordinated Note due 10/14/2021	$	1,312,769	10/14/15			1,291,461		1,333,433
Mail Communications Group, Inc.
A provider of mail processing and handling services, lettershop services, and commercial printing services.
Limited Liability Company Unit	12,764 uts.			*		166,481		187,812
Warrant, exercisable until 2017, to purchase common stock at $.01 per share (B)(F)	1,787 shs.		05/04/07			22,781		26,295
* 05/04/07 and 01/02/08.						189,262		214,107
Manhattan Beachwear Holding Company
A designer and distributor of women's swimwear.
12.5% Senior Subordinated Note due 01/15/2018 (D)	$	419,971	01/15/10			404,121		—
15% (2.5% PIK) Senior Subordinated Note due 01/15/2018 (D)	$	115,253	10/05/10			114,604		—
Common Stock (B)	35 shs.		10/05/10			35,400		—
Common Stock Class B (B)	118 shs.		01/15/10			117,647		—
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)	104 shs.		10/05/10			94,579		—
						766,351		—

17

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Master Cutlery LLC
A designer and marketer of a wide assortment of knives and swords.
13% Senior Subordinated Note due 04/17/2020	$	870,322	04/17/15		$	863,334	$	783,432
Limited Liability Company Unit	5 uts.		04/17/15			678,329		124,745
						1,541,663		908,177
MC Sign Holdings LLC
A provider of sign and lighting services nationwide.
11.75% (0.75% PIK) Senior Subordinated Note due 09/15/2021	$	769,746	09/22/15			757,386		770,049
11.75% (0.75% PIK) Senior Subordinated Note due 08/09/2022	$	215,854	02/09/17			211,618		215,939
Limited Liability Company Unit Class B (B)	101,500 uts.		09/22/15			101,500		165,232
						1,070,504		1,151,220
Merex Holding Corporation
A provider of after-market spare parts and components, as well as maintenance, repair and overhaul services for "out of production" or "legacy" aerospace and defense systems that are no longer effectively supported by the original equipment manufacturers.
16% Senior Subordinated Note due 10/30/2019 (D)	$	454,295	09/22/11			449,013		408,866
15% PIK Senior Subordinated Note due 04/30/2022 (D)	$	23,839	08/18/15			23,839		—
14% PIK Senior Subordinated Note due 06/30/2019	$	37,706	10/21/16			37,706		37,470
Common Stock Class A (B)	86,958 shs.			*		170,705		—
* 08/18/15, 10/20/16 and 01/27/17.						681,263		446,336
MES Partners, Inc.
An industrial service business offering an array of cleaning and environmental services to the Gulf Coast region of the U.S.
12% (1% PIK) Senior Subordinated Note due 09/30/2021	$	1,109,402	09/30/14			1,093,489		1,084,574
Common Stock Class B (B)	219,545 shs.		09/30/14			219,545		70,565
						1,313,034		1,155,139
Midwest Industrial Rubber, Inc.
A supplier of industrial maintenance, repair, and operations ("MRO") products, specializing in the fabrication and distribution of lightweight conveyor belting and related conveyor components and accessories.
12% (1% PIK) Senior Subordinated Note due 12/02/2022	$	1,558,781	12/02/16			1,528,884		1,568,336
Preferred Stock (B)	1,711 shs.		12/02/16			171,116		144,353
Common Stock (B)	242 shs.		12/02/16			242		—
						1,700,242		1,712,689

18

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
MNX Holding Company
An international third party logistics company providing customized logistics services to customers across the globe.
14% (2% PIK) Senior Subordinated Note due 11/02/2019	$	1,316,315	11/02/12		$	1,304,573	$	1,316,315
Common Stock (B)	45 shs.		11/02/12			44,643		23,933
						1,349,216		1,340,248
Money Mailer Equity LLC
A leading provider of hyperlocal shared direct mail advertising as well as interactive and online advertising solutions through its nationwide production and distribution network.
12% (1% PIK) Senior Subordinated Note due 10/29/2021	$	1,739,458	04/29/16			1,709,491		1,681,289
Motion Controls Holdings
A manufacturer of high performance mechanical motion control and linkage products.
14.25% (1.75% PIK) Senior Subordinated Note due 08/15/2020	$	1,013,895	11/30/10			1,007,323		1,013,895
Limited Liability Company Unit Class B-1 (B)(F)	75,000 uts.		11/30/10			—		54,791
Limited Liability Company Unit Class B-2 (B)(F)	6,801 uts.		11/30/10			—		4,968
						1,007,323		1,073,654
NetShape Technologies, Inc.
A manufacturer of powder metal and metal injection molded precision components used in industrial, consumer, and other applications.
12% Senior Subordinated Note due 06/10/2020 (D)	$	810,000	02/02/07			809,408		—
Limited Partnership Interest of Saw Mill PCG Partners LLC (B)	1.46% int.		02/01/07			588,077		—
Limited Liability Company Unit Class D of Saw Mill PCG Partners LLC (B)	9 uts.			*		8,873		—
Limited Liability Company Unit Class D-1 of Saw Mill PCG Partners LLC (B)	121 uts.		09/30/09			121,160		—
Limited Liability Company Unit Class D-2 of Saw Mill PCG Partners LLC (B)	68 uts.		04/29/11			34,547		—
Limited Liability Company Unit Class D-3 of Saw Mill PCG Partners LLC (B)	104 uts.		12/10/14			103,904		—
* 12/18/08 and 09/30/09.						1,665,969		—
NSi Industries Holdings, Inc.
A manufacturer and distributer of electrical components and accessories to small to mid-sized electrical wholesalers.
12.75% (1.75% PIK) Senior Subordinated Note due 05/17/2023	$	1,527,814	06/30/16			1,500,613		1,536,204
Common Stock (B)	207 shs.		05/17/16			207,000		232,305
						1,707,613		1,768,509

19

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
O E C Holding Corporation
A provider of elevator maintenance, repair and modernization services.
Preferred Stock Series A (B)	554 shs.		06/04/10		$	55,354	$	75,780
Preferred Stock Series B (B)	311 shs.		06/04/10			31,125		60,473
Common Stock (B)	344 shs.		06/04/10			344		59,165
						86,823		195,418
PANOS Brands LLC
A marketer and distributor of branded consumer foods in the specialty, natural, better-for-you,"free from" healthy and gluten-free categories.
12% (1% PIK) Senior Subordinated Note due 07/29/2021	$	1,449,000	01/29/16			1,424,667		1,477,980
12% (1% PIK) Senior Subordinated Note due 08/17/2022	$	326,705	02/17/17			320,270		326,833
Common Stock Class B (B)	380,545 shs.			*		380,545		432,096
* 01/29/16 and 02/17/17.						2,125,482		2,236,909
Pearlman Enterprises, Inc.
A developer and distributor of tools, equipment and supplies to the natural and engineered stone industry.
Preferred Stock Series A (B)	1,236 shs.		05/22/09			59,034		1,235,800
Preferred Stock Series B (B)	7,059 shs.		05/22/09			290,050		226,489
Common Stock (B)	21,462 shs.		05/22/09			993,816		—
						1,342,900		1,462,289
Petroplex Inv Holdings LLC
A leading provider of acidizing services to E&P customers in the Permian Basin.
Limited Liability Company	0.40% int.			*		175,339		4,910
* 11/29/12 and 12/20/16.
Polytex Holdings LLC
A manufacturer of water based inks and related products serving primarily the wall covering market.
13% (1% PIK) Senior Subordinated Note due 01/31/2020	$	1,064,655	07/31/14			1,052,125		1,041,754
Limited Liability Company Unit	148,096 uts.		07/31/14			148,096		83,763
						1,200,221		1,125,517
Power Stop Holdings LLC
A supplier of performance upgrade aftermarket brake products.
11% Senior Subordinated Note due 05/29/2022	$	1,610,100	05/29/15			1,585,453		1,642,302
Limited Liability Company Unit Preferred (B)(F)	1,149 uts.		05/29/15			114,900		134,531
Limited Liability Company Unit Common (B)(F)	1,149 uts.		05/29/15			—		98,115
						1,700,353		1,874,948

20

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
PPC Event Services
A special event equipment rental business.
14% (2% PIK) Senior Subordinated Note due 05/20/2020	$	1,172,727	11/20/14		$	1,157,985	$	1,172,727
Limited Liability Company Unit (B)	3,450 uts.		11/20/14			172,500		484,684
Limited Liability Company Unit Series A-1 (B)	339 uts.		03/16/16			42,419		55,351
						1,372,904		1,712,762
Randy's Worldwide Automotive
A designer and distributor of automotive aftermarket parts.
11.5% Senior Subordinated Note due 05/12/2021	$	1,135,898	05/12/15			1,119,556		1,158,616
Common Stock (B)	118 shs.		05/12/15			118,476		180,502
						1,238,032		1,339,118
Signature Systems Holding Company
A seller and installer of a variety of modular surfaces, industrial matting and related products used for ground protection.
Common Stock (B)	76 shs.		03/15/13			75,509		7,586
Warrant, exercisable until 2023, to purchase common stock A at $.01 per share (B)	31 shs.		03/15/13			28,316		3,099
						103,825		10,685
Smart Source Holdings LLC
A short-term computer rental company.
Limited Liability Company Unit (B)	328 uts.			*		261,262		385,543
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)	83 shs.			*		67,467		97,658
* 08/31/07 and 03/06/08.						328,729		483,201
SMB Machinery Holdings, Inc.
A reseller of used, rebuilt and refurbished packaging and processing equipment, primarily serving the bottling and food manufacturing industries.
14% (2% PIK) Senior Subordinated Note due 10/18/2019 (D)	$	738,694	10/18/13			726,147		—
Common Stock (B)	841 shs.		10/18/13			84,100		—
						810,247		—
Software Paradigms International Group, LLC
An outsourced IT services provider focused on the retail industry.
12.5% (1.5% PIK) Senior Subordinated Note due 11/23/2021	$	1,725,000	05/23/16			1,694,413		1,731,027

21

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
SR Smith LLC
A manufacturer of mine and tunneling ventilation products in the United States.
11% Senior Subordinated Note due 03/27/2022	$	867,652	03/27/17		$	856,829	$	865,676
Limited Liability Company Unit Series A (B)(F)	14 uts.		03/27/17			846,631		857,286
						1,703,460		1,722,962
Strahman Holdings Inc
A manufacturer of industrial valves and wash down equipment for a variety of industries, including chemical, petrochemical, polymer, pharmaceutical, food processing, beverage and mining.
14% (2% PIK) Senior Subordinated Note due 06/13/2019	$	1,059,783	12/13/13			1,046,028		1,045,273
Preferred Stock Series A (B)	158,967 shs.		12/13/13			158,967		139,891
Preferred Stock Series A-2 (B)	26,543 shs.		09/10/15			29,994		23,358
						1,234,989		1,208,522
Sunrise Windows Holding Company
A manufacturer and marketer of premium vinyl windows exclusively selling to the residential remodeling and replacement market.
16% Senior Subordinated Note due 01/31/2019 (D)	$	1,428,470		*		1,358,229		999,929
Common Stock (B)	38 shs.		12/14/10			38,168		—
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)	37 shs.		12/14/10			37,249		—
* 12/14/10, 08/17/12 and 03/31/16.						1,433,646		999,929
Sunvair Aerospace Group Inc.
An aerospace maintenance, repair, and overhaul provider servicing landing gears on narrow body aircraft.
12% (1% PIK) Senior Subordinated Note due 07/31/2021	$	1,221,686	07/31/15			1,202,944		1,197,906
Common Stock (B)	68 shs.		07/31/15			78,150		33,989
						1,281,094		1,231,895
Team Drive-Away Holdings LLC
An asset-light provider of over the road driveaway services for class 8 trucks and specialized equipment.
12.5% (1.5% PIK) Senior Subordinated Note due 04/15/2021	$	766,700	10/15/15			754,458		778,832
Limited Liability Company Unit (B)	95,800 uts.		10/15/15			95,800		97,812
						850,258		876,644

22

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Torrent Group Holdings, Inc.
A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and nuisance water flow.
15% (7.5% PIK) Senior Subordinated Note due 12/05/2020	$	69,673	12/05/13		$	219,203	$	69,673
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	28,079 shs.		12/05/13			—		7,581
						219,203		77,254
Tranzonic Holdings LLC
A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom supplies and sanitary care products.
Limited Liability Company Unit Preferred Class A (B)	152,696 shs.			*		166,248		315,918
* 07/05/13 and 02/13/17.
Tristar Global Energy Solutions, Inc.
A hydrocarbon and decontamination services provider serving refineries worldwide.
12.5% (1.5% PIK) Senior Subordinated Note due 07/31/2020	$	1,147,678	01/23/15			1,132,243		1,159,155
Veritext Corporation
A provider of stenographic staffing and other services used during the legal deposition process.
10.75% Second Lien Term Loan due 01/29/2023	$	2,012,500		*		1,978,123		2,012,500
* 01/21/16 and 02/23/17.
VP Holding Company
A provider of school transportation services for special-needs and homeless children in Massachusetts.
Common Stock (B)	3,632 shs.		03/31/14			363,158		398,635
Wellborn Forest Holding Company
A manufacturer of semi-custom kitchen and bath cabinetry.
8% Senior Subordinated Note due 09/30/2017 (D)	$	1,778,423	11/30/06			667,078		1,778,423
Common Stock (B)	101 shs.		11/30/06			101,250		—
Warrant, exercisable until 2017, to purchase common stock at $.01 per share (B)	51 shs.		11/30/06			45,790		—
						814,118		1,778,423
Westminster Acquisition LLC
A manufacturer of premium, all-natural oyster cracker products sold under the Westminster and Olde Cape Cod brands.
12% (1% PIK) Senior Subordinated Note due 02/03/2021	$	376,425	08/03/15			370,914		383,953
Limited Liability Company Unit (B)(F)	370,241 uts.		08/03/15			370,241		617,029
						741,155		1,000,982

23

Corporate Restricted Securities: (A) (Continued)	Principal Amount,Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Whitcraft Holdings, Inc.
A leading independent manufacturer of precision formed, machined, and fabricated flight-critical aerospace components.
Common Stock (B)	205 shs.			12/16/10	$	205,480	$	413,320
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	55 shs.			12/16/10		49,334		111,074
						254,814		524,394
Wolf-Gordon, Inc.
A designer and specialty distributor of wallcoverings and related building products, including textiles, paint, and writeable surfaces.
12.5% (1.5% PIK) Senior Subordinated Note due 07/22/2021	$	1,596,414		01/22/16		1,570,107		1,624,045
Common Stock (B)	157 shs.			01/22/16		156,818		151,734
						1,726,925		1,775,779
WP Supply Holding Corporation
A distributor of fresh fruits and vegetables to grocery wholesalers and foodservice distributors in the upper Midwest.
14.5% (2.5% PIK) Senior Subordinated Note due 06/12/2020	$	972,721		11/03/11		967,202		972,721
Common Stock (B)	1,500 shs.			11/03/11		150,000		109,345
						1,117,202		1,082,066
York Wall Holding Company
A designer, manufacturer and marketer of wall covering products for both residential and commercial wall coverings.
12.5% (1.5% PIK) Senior Subordinated Note due 03/04/2021 (D)	$	1,572,322		03/04/15		1,549,582		1,369,612
Common Stock (B)	1,835 shs.			03/04/15		183,500		52,813
						1,733,082		1,422,425
Total Private Placement Investments (E)					$	97,147,613	$	95,827,759

24

Corporate Restricted Securities: (A) (Continued)	Interest Rate		Maturity Date	Principal Amount		Cost		Market Value
Rule 144A Securities - 13.57%:
Bonds - 13.57%
Altice Financing S.A.	7.500	%	05/15/26	$	400,000	$	400,000	$	425,000
Amsted Industries	5.375		09/15/24		240,000		240,000		240,600
Beazer Homes USA, Inc.	8.750		03/15/22		160,000		160,000		175,200
Belden Inc.	5.250		07/15/24		210,000		210,000		209,475
Boise Cascade Company	5.625		09/01/24		130,000		130,000		131,950
CITGO Petroleum Corporation	6.250		08/15/22		425,000		425,000		430,313
Consolidated Energy Finance S.A.	6.750		10/15/19		500,000		495,408		503,750
Constellium N.V.	7.875		04/01/21		373,000		373,000		398,177
Cornerstone Chemical Company	9.375		03/15/18		500,000		502,987		502,500
CTP Transportation Products, LLC	8.250		12/15/19		310,000		310,000		272,800
CVR Partners, LP.	9.250		06/15/23		500,000		488,554		513,125
Dean Foods	6.500		03/15/23		329,000		329,000		342,982
Dell Inc.	4.420		06/15/21		600,000		625,432		627,447
Digicel Group Limited	6.000		04/15/21		500,000		461,195		454,375
EnPro Industries Inc.	5.875		09/15/22		120,000		121,196		124,200
First Data Corporation	5.000		01/15/24		406,000		406,000		413,105
First Quantum Minerals Ltd.	7.500		04/01/25		500,000		486,227		503,750
HD Supply, Inc.	5.250		12/15/21		127,000		127,000		133,508
Hilcorp Energy Company	5.000		12/01/24		335,000		335,000		314,063
Hughes Satellite Systems Corporation	6.625		08/01/26		500,000		496,639		511,250
Iamgold Corporation	7.000		04/15/25		500,000		500,000		495,000
J.B. Poindexter Co., Inc.	9.000		04/01/22		500,000		500,000		523,750
Jupiter Resources Inc.	8.500		10/01/22		500,000		472,529		408,750
LBC Tank Terminals Holding Netherlands B.V.	6.875		05/15/23		663,000		678,135		687,942
Mallinckrodt PLC	5.750		08/01/22		500,000		500,000		492,750
MEG Energy Corporation	6.375		01/30/23		500,000		500,000		446,875
Micron Technology, Inc.	5.250		08/01/23		494,000		494,000		506,350
Micron Technology, Inc.	7.500		09/15/23		203,000		203,000		226,599
Moog Inc.	5.250		12/01/22		500,000		503,161		512,500
New Gold Inc.	6.250		11/15/22		500,000		502,490		501,250
Nielsen Finance LLC	5.000		04/15/22		271,000		272,500		277,098
OPE KAG Finance Sub	7.875		07/31/23		500,000		520,321		511,250
Penske Corporation	4.875		07/11/22		500,000		498,662		539,757
Prime Security Services Borrower	9.250		05/15/23		500,000		500,000		548,125
Sabre GLBL, Inc.	5.250		11/15/23		122,000		122,000		124,745
Sinclair Broadcast Group, Inc.	5.875		03/15/26		204,000		204,000		209,100
Sinclair Television Group, Inc.	5.125		02/15/27		500,000		500,000		482,500
Suncoke Energy	7.375		02/01/20		500,000		474,865		505,000

25

Corporate Restricted Securities: (A) (Continued)	Interest Rate		Maturity Date	Principal Amount		Cost		Market Value
Tallgrass Operations LLC	5.500	%	09/15/24	$	304,000	$	304,000	$	305,520
Topaz Marine S.A.	8.625		11/01/18		500,000		500,000		492,500
Unitymedia KabelBW GmbH	6.125		01/15/25		500,000		500,000		526,250
Univision Communications, Inc.	5.125		05/15/23		160,000		160,000		158,000
UPCB Finance IV Limited	5.375		01/15/25		208,000		208,000		209,300
Valeant Pharmaceuticals International	7.000		10/01/20		250,000		250,409		227,500
Valeant Pharmaceuticals International	7.000		03/15/24		173,000		173,000		177,541
Virgin Media Secured Finance PLC	5.250		01/15/26		500,000		502,987		502,500
VRX Escrow Corp.	6.125		04/15/25		182,000		182,000		140,140
Welltec A/S	8.000		02/01/19		375,000		372,442		376,875
West Corporation	5.375		07/15/22		500,000		492,868		491,250
Wolverine World Wide, Inc.	5.000		09/01/26		335,000		335,000		314,900
Total Bonds							19,049,007		19,149,187
Common Stock - 0.00%
TherOX, Inc. (B)					2		—		—
Touchstone Health Partnership (B)					292		—		—
Total Common Stock							—		—
Total Rule 144A Securities							19,049,007		19,149,187
Total Corporate Restricted Securities						$	116,196,620	$	114,976,946

26

Corporate Public Securities - 20.53%: (A)	Interest Rate		Maturity Date	Principal Amount		Cost		Market Value
Bank Loans - 0.55%
Aquilex Holdings LLC	5.000	%	12/31/20	$	157,127	$	156,915	$	151,627
Power Products, LLC	5.530		01/24/23		132,220		131,575		133,046
Seadrill Partners Finco, LLC	4.000		02/21/21		493,622		253,049		333,723
Summit Midstream Holdings, LLC	7.020		03/06/22		147,334		145,863		149,913
Total Bank Loans							687,402		768,309
Bonds - 19.98%
ADT Security Services Corporation	4.125		06/15/23		500,000		442,181		477,500
Air Lease Corp.	3.000		09/15/23		600,000		594,484		586,327
Alcoa, Inc.	6.150		08/15/20		600,000		614,617		648,750
Anglogold Holdings PLC	5.375		04/15/20		600,000		602,431		631,500
Anixter, Inc.	5.125		10/01/21		165,000		165,000		172,013
Antero Resources Corporation	5.375		11/01/21		395,000		395,000		405,701
A. Schulman Inc.	6.875		06/01/23		500,000		505,893		518,750
Bank of America Corporation	4.000		04/01/24		500,000		498,611		518,399
Brunswick Corporation	7.125		08/01/27		500,000		503,941		588,275
Bunge Limited Finance Corp.	3.250		08/15/26		600,000		602,088		579,901
Community Health Sysyems Inc.	5.125		08/01/21		480,000		472,180		474,600
Clearwater Paper Corporation	4.500		02/01/23		500,000		496,759		485,000
Commercial Metals Company	4.875		05/15/23		750,000		751,055		765,000
Crown Castle International Corp	5.250		01/15/23		600,000		669,188		654,743
CubeSmart, L.P.	4.000		11/15/25		500,000		506,715		507,637
CVR Refining LLC	6.500		11/01/22		350,000		341,623		352,625
Discovery Communications	4.900		03/11/26		600,000		652,362		624,057
Duke Realty Limited Partnership	3.875		10/15/22		500,000		500,767		519,592
EP Energy Corporation	9.375		05/01/20		406,000		207,483		382,736
Expedia Inc.	4.500		08/15/24		600,000		626,679		628,065
Ferrellgas Partners, L.P.	6.750		01/15/22		265,000		267,866		250,425
Ferrellgas Partners, L.P.	8.625		06/15/20		650,000		650,533		622,375
Ford Motor Credit Co. LLC	4.375		08/06/23		600,000		646,332		626,311
Forum Energy Technologies	6.250		10/01/21		160,000		160,000		157,600
Frontier Communications Corporation	6.875		01/15/25		500,000		490,665		413,750
General Motors Financial Co. Inc.	4.000		01/15/25		500,000		508,417		502,507
GEO Group, Inc.	5.875		01/15/22		500,000		476,107		516,250
HealthSouth Corporation	5.125		03/15/23		421,000		412,927		420,999
Hertz Corporation	6.750		04/15/19		79,000		78,586		79,099
Hospital Corporation of America	5.375		02/01/25		100,000		101,534		104,250
Hospital Corporation of America	5.250		06/15/26		174,000		174,000		183,135
Hewlett Packard Enterprise Company	4.900		10/15/25		500,000		498,603		519,367

27

Corporate Public Securities: (A) (Continued)	Interest Rate		Maturity Date	Principal Amount		Cost		Market Value
Icahn Enterprises L.P.	6.000	%	08/01/20	$	600,000	$	606,633	$	621,000
Jabil Circuit, Inc.	4.700		09/15/22		500,000		499,989		515,000
Laboratory Corporation of America Holdings	3.600		02/01/25		500,000		499,359		494,425
Lamar Media Corp.	5.375		01/15/24		160,000		160,000		165,200
Laredo Petroleum, Inc.	5.625		01/15/22		500,000		474,501		498,750
Lazard Group LLC	4.250		11/14/20		500,000		499,088		525,876
Lifepoint Hospitals, Inc.	5.500		12/01/21		350,000		356,913		363,125
LyondellBasell Industries N.V.	5.750		04/15/24		500,000		590,982		571,472
MasTec, Inc.	4.875		03/15/23		500,000		492,899		493,750
Meritor, Inc.	6.750		06/15/21		1,000,000		1,000,000		1,036,250
MPLX LP	4.875		12/01/24		500,000		500,000		525,969
Netflix, Inc.	5.500		02/15/22		299,000		299,000		317,688
NRG Energy, Inc.	7.250		05/15/26		500,000		503,121		515,000
Owens Corning	4.200		12/01/24		600,000		635,825		618,161
PBF Holding Company LLC	6.997		11/15/23		33,000		33,000		33,083
Perry Ellis International, Inc.	7.875		04/01/19		125,000		124,535		125,125
Pitney Bowes Inc.	3.375		10/01/21		500,000		499,639		491,371
Precision Drilling Corporation	6.625		11/15/20		149,477		151,790		150,225
Reinsurance Group of America	3.950		09/15/26		500,000		503,084		504,246
SM Energy Company	6.750		09/15/26		500,000		500,000		504,063
Sprint Corporation	7.125		06/15/24		155,000		155,000		165,463
Steelcase, Inc.	6.375		02/15/21		500,000		503,909		557,005
Suburban Propane Partners, L.P.	5.750		03/01/25		500,000		500,000		492,500
Summit Midstream Holdings, LLC	5.500		08/15/22		92,000		68,261		92,000
Time Warner Cable, Inc.	5.000		02/01/20		500,000		496,540		531,786
Tyson Foods, Inc.	4.500		06/15/22		500,000		509,633		533,545
Western Digital Corporation	10.500		04/01/24		253,000		253,000		298,224
William Lyon Homes	7.000		08/15/22		500,000		500,000		522,500
WPX Energy, Inc.	5.250		09/15/24		425,000		425,000		411,188
Xlit Ltd	4.450		03/31/25		600,000		613,761		607,180
Total Bonds							27,570,089		28,198,409
Total Corporate Public Securities						$	28,257,491	$	28,966,718

28

Short-Term Security:	Interest Rate/Yield^		Maturity Date	Principal Amount		Cost		Market Value
Commercial Paper - 4.25%
AutoZone Inc.	1.150	%	04/03/17	$	2,000,000	$	1,999,872	$	1,999,872
Leggett & Platt Inc.	1.250		04/18/17		2,000,000		1,998,820		1,998,820
Suncor Energy Inc	1.095		04/06/17		2,000,000		1,999,696		1,999,696
Total Short-Term Security						$	5,998,388	$	5,998,388
Total Investments	106.25	%				$	150,452,499	$	149,942,052
Other Assets	5.40								7,620,286
Liabilities	(11.65	)							(16,442,645	)
Total Net Assets	100.00	%						$	141,119,693

(A) In each of the convertible note, warrant, and common stock investments, the issuer has agreed to provide certain registration rights.

(B) Non-income producing security.

(C) Security valued at fair value using methods determined in good faith by or under the direction of the Board of Trustees.

(D) Defaulted security; interest not accrued.

(E) Illiquid security. As of March 31, 2017 the values of these securities amounted to $95,827,759 or 67.90% of net assets.

(F) Held in CI Subsidiary Trust

PIK - Payment-in-kind

29

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2017

(Unaudited)

Industry Classification:	Fair Value/ Market Value
AEROSPACE & DEFENSE - 2.96%
API Technologies Corp.	$	1,716,351
FMH Holdings Corporation		261,232
Merex Holding Corporation		446,336
Sunvair Aerospace Group Inc.		1,231,895
Whitcraft Holdings, Inc.		524,394
		4,180,208
AUTOMOTIVE - 8.38%
Aurora Parts & Accessories LLC		1,711,946
CG Holdings Manufacturing Company		1,929,336
DPL Holding Corporation		1,612,170
Ford Motor Credit Co. LLC		626,311
General Motors Financial Co. Inc.		502,507
Grakon Parent		157,693
J.B. Poindexter Co., Inc.		523,750
Meritor, Inc.		1,036,250
Moog Inc.		512,500
Power Stop Holdings LLC		1,874,948
Randy's Worldwide Automotive		1,339,118
		11,826,529
BANKING - 0.37%
Bank of America Corporation		518,399
BROKERAGE, ASSET MANAGERS & EXCHANGES - 0.81%
Icahn Enterprises L.P.		621,000
Lazard Group LLC		525,876
		1,146,876
BUILDING MATERIALS - 9.58%
ARI Holding Corporation		2,258,761
Boise Cascade Company		131,950
Janus Group Holdings LLC		908,709
Happy Floors Acquisition, Inc.		1,725,525
NSi Industries Holdings, Inc.		1,768,509
Owens Corning		618,161
Pearlman Enterprises, Inc.		1,462,289
Signature Systems Holding Company		10,685
Sunrise Windows Holding Company		999,929
Torrent Group Holdings, Inc.		77,254
Wellborn Forest Holding Company		1,778,423
Wolf-Gordon, Inc.	$	1,775,779
		13,515,974
CABLE & SATELLITE - 1.62%
Hughes Satellite Systems Corporation		511,250
Time Warner Cable, Inc.		531,786
Unitymedia KabelBW GmbH		526,250
UPCB Finance IV Limited		209,300
Virgin Media Secured Finance PLC		502,500
		2,281,086

30

Industry Classification:	Fair Value/ Market Value
CHEMICALS - 3.22%
A. Schulman Inc.		518,750
Compass Chemical International LLC		114,876
Consolidated Energy Finance S.A.		503,750
Cornerstone Chemical Company		502,500
CVR Partners, LP.		513,125
LBC Tank Terminals Holding Netherlands B.V.		687,942
LyondellBasell Industries N.V.		571,472
Polytex Holdings LLC		1,125,517
		4,537,932
CONSUMER CYCLICAL SERVICES - 3.41%
ADT Security Services Corporation		477,500
CHG Alternative Education Holding Company		1,066,433
Church Services Holding Company		—
GEO Group, Inc.		516,250
PPC Event Services		1,712,762
Prime Security Services Borrower		548,125
West Corporation		491,250
		4,812,320
CONSUMER PRODUCTS - 10.20%
AMS Holding LLC		242,562
Blue Wave Products, Inc.		860,189
Elite Sportwear Holding, LLC		1,738,662
gloProfessional Holdings, Inc.		1,354,856
GTI Holding Company		795,719
Handi Quilter Holding Company		2,101,845
HHI Group, LLC		947,622
K N B Holdings Corporation		76,115

See Notes to Consolidated Financial Statements

31

Industry Classification: (Continued)	Fair Value/ Market Value
Kyjen Company	$	1,333,433
Leggett & Platt Inc.		1,998,820
Manhattan Beachwear Holding Company		—
MasTec, Inc.		493,750
Master Cutlery LLC		908,177
Perry Ellis International, Inc.		125,125
York Wall Holding Company		1,422,42
		14,399,300
DIVERSIFIED MANUFACTURING - 4.89%
ABC Industries, Inc.		380,010
Advanced Manufacturing Enterprises LLC		—
Airxcel Holdings		330,562
Amsted Industries		240,600
Belden Inc.		209,475
BP SCI LLC		339,495
CTP Transportation Products, LLC		272,800
EnPro Industries Inc.		124,200
F G I Equity LLC		368,360
Forum Energy Technologies		157,600
Ideal Tridon Holdings, Inc.		174,798
K P I Holdings, Inc.		160,933
Motion Controls Holdings		1,073,654
NetShape Technologies, Inc.		—
SR Smith LLC		1,722,962
Strahman Holdings Inc		1,208,522
Power Products, LLC		133,046
		6,897,017
ELECTRIC - 1.59%
AM Conservation Holding Corp.		1,722,059
NRG Energy, Inc.		515,000
		2,237,059
FINANCE COMPANIES - 0.42%
Air Lease Corp.		586,327
FINANCIAL OTHER - 0.07%
Insurance Claims Management, Inc.		104,566
FOOD & BEVERAGE - 10.69%
1492 Acquisition LLC		314,277
Bunge Limited Finance Corp.		579,901
Dean Foods		342,982
Del Real LLC		1,702,306
Eagle Family Foods, Inc.	$	1,725,000
F F C Holding Corporation		357,714
GenNx Novel Holding, Inc.		1,500,459
Hollandia Produce LLC		1,307,811
Hospitality Mints Holding Company		1,052,576
Impact Confections		1,187,606
JMH Investors LLC		163,043
PANOS Brands LLC		2,236,909
Tyson Foods, Inc.		533,545

32

Industry Classification: (Continued)	Fair Value/ Market Value
Westminster Acquisition LLC		1,000,982
WP Supply Holding Corporation		1,082,066
		15,087,177
GAMING - 1.18%
CTM Holding, Inc.		1,670,309
HEALTHCARE - 3.59%
CORA Health Services, Inc.		854,454
Community Health Sysyems Inc.		474,600
ECG Consulting Group		1,413,407
GD Dental Services LLC		118,292
Healthcare Direct Holding Company		91,608
HealthSouth Corporation		420,999
Hospital Corporation of America		287,385
Laboratory Corporation of America Holdings		494,425
Lifepoint Hospitals, Inc.		363,125
TherOX, Inc.		—
Touchstone Health Partnership		—
Valeant Pharmaceuticals International		405,041
VRX Escrow Corp.		140,140
		5,063,476
HEALTH INSURANCE - 0.36%
Reinsurance Group of America		504,246
HOME CONSTRUCTION - 0.49%
Beazer Homes USA, Inc.		175,200
William Lyon Homes		522,500
		697,700
INDEPENDENT - 1.98%
Antero Resources Corporation		405,701
EP Energy Corporation		382,736
Jupiter Resources Inc.		408,750

See Notes to Consolidated Financial Statements

33

Industry Classification: (Continued)	Fair Value/ Market Value
Laredo Petroleum, Inc.	$	498,750
MEG Energy Corporation		446,875
Precision Drilling Corporation		150,225
SM Energy Company		504,063
		2,797,100
INDUSTRIAL OTHER - 8.77%
AFC - Dell Holding Corporation		1,319,035
Aquilex Holdings LLC		151,627
Brunswick Corporation		588,275
Clough, Harbour and Associates		765,870
Connecticut Electric, Inc.		1,474,577
Hartland Controls Holding Corporation		1,764,302
HVAC Holdings, Inc.		1,405,442
Mail Communications Group, Inc.		214,107
MC Sign Holdings LLC		1,151,220
Midwest Industrial Rubber, Inc.		1,712,689
Nielsen Finance LLC		277,098
O E C Holding Corporation		195,418
Smart Source Holdings LLC		483,201
SMB Machinery Holdings, Inc.		—
Steelcase, Inc.		557,005
Tranzonic Holdings LLC		315,918
		12,375,784
INTEGRATED - 1.42%
Suncor Energy Inc		1,999,696
MEDIA & ENTERTAINMENT - 2.65%
BlueSpire Holding, Inc.		—
Discovery Communications		624,057
GlynnDevins Acquisition Corporation		100,417
HOP Entertainment LLC		—
Lamar Media Corp.		165,200
Money Mailer Equity LLC		1,681,289
Netflix, Inc.		317,688
Sinclair Broadcast Group, Inc.		209,100
Sinclair Television Group, Inc.		482,500
Univision Communications, Inc.		158,000
		3,738,251
METALS & MINING - 3.15%
Alcoa, Inc.	$	648,750
Anglogold Holdings PLC		631,500
Commercial Metals Company		765,000
Constellium N.V.		398,177
First Quantum Minerals Ltd.		503,750
Iamgold Corporation		495,000
New Gold Inc.		501,250
Suncoke Energy		505,000
		4,448,427
MIDSTREAM - 1.61%
CVR Refining LLC		352,625
Ferrellgas Partners, L.P.		872,800

34

Industry Classification: (Continued)	Fair Value/ Market Value
Suburban Propane Partners, L.P.		492,500
Summit Midstream Holdings, LLC		241,913
Tallgrass Operations LLC		305,520
		2,265,358
OIL FIELD SERVICES - 1.37%
Avantech Testing Services LLC		—
Hilcorp Energy Company		314,063
Petroplex Inv Holdings LLC		4,910
Seadrill Partners Finco, LLC		333,723
Topaz Marine S.A.		492,500
Welltec A/S		376,875
WPX Energy, Inc.		411,188
		1,933,259
OTHER - REITS - 0.73%
Duke Realty Limited Partnership		519,592
CubeSmart, L.P.		507,637
		1,027,229
PACKAGING - 0.52%
ASC Holdings, Inc.		736,014
PAPER - 1.54%
Clearwater Paper Corporation		485,000
Dunn Paper		1,690,500
		2,175,500

See Notes to Consolidated Financial Statements

35

Industry Classification: (Continued)	Fair Value/ Market Value
PHARMACEUTICALS - 2.87%
Clarion Brands Holding Corp.	$	2,222,327
ERG Holding Company LLC		1,332,715
Mallinckrodt PLC		492,750
		4,047,792
PROPERTY & CASUALTY - 0.43%
Xlit Ltd		607,180
REFINING - 2.34%
CITGO Petroleum Corporation		430,313
MES Partners, Inc.		1,155,139
MPLX LP		525,969
PBF Holding Company LLC		33,083
Tristar Global Energy Solutions, Inc.		1,159,155
		3,303,659
RETAILERS - 1.73%
AutoZone Inc.		1,999,872
HD Supply, Inc.		133,508
Wolverine World Wide, Inc.		314,900
		2,448,280
TECHNOLOGY - 7.17%
Anixter, Inc.		172,013
Dell Inc.		627,447
Expedia Inc.		628,065
First Data Corporation		413,105
Glynlyon Holding Companies, Inc.		1,847,245
Hewlett Packard Enterprise Company		519,367
Jabil Circuit, Inc.		515,000
Micron Technology, Inc.		732,949
Pitney Bowes Inc.		491,371
Sabre GLBL, Inc.		124,745
Software Paradigms International Group, LLC		1,731,027
Veritext Corporation		2,012,500
Western Digital Corporation		298,224
		10,113,058
TELECOMMUNICATIONS - 0.30%
Altice Financing S.A.		425,000
TRANSPORTATION SERVICES - 2.65%
Hertz Corporation	$	79,099
MNX Holding Company		1,340,248
OPE KAG Finance Sub		511,250
Penske Corporation		539,757
Team Drive-Away Holdings LLC		876,644
VP Holding Company		398,635
		3,745,633
WIRELESS - 0.90%
Crown Castle International Corp		654,743
Digicel Group Limited		454,375
Sprint Corporation		165,463
		1,274,581
WIRELINES - 0.29%
Frontier Communications Corporation		413,750
Total Investments - 106.25% (Cost - $150,452,499)	$	149,942,052

See Notes to Consolidated Financial Statements

36

Fair Value Hierarchy

The Trust categorizes its investments measured at fair value in three levels, based on the inputs and assumptions used to determine fair value. These levels are as follows:

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments)

The following table summarizes the levels in the fair value hierarchy into which the Trusts' financial instruments are categorized as of March 31, 2017.

The fair values of our investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation as of March 31, 2017 are as follows:

Assets:	Total		Level 1		Level 2		Level 3
Restricted Securities
Corporate Bonds	$	89,245,508	$	—	$	19,149,187	$	70,096,321
Bank Loans		5,428,000		—		—		5,428,000
Common Stock - U.S.		5,747,364		—		—		5,747,364
Preferred Stock		3,787,872		—		—		3,787,872
Partnerships and LLCs		10,768,202		—		—		10,768,202
Public Securities
Bank Loans		768,309		—		768,309		—
Corporate Bonds		28,198,409		—		28,198,409		—
Short-term Securities		5,998,388		—		5,998,388		—
Total	$	149,942,052	$	—	$	54,114,293	$	95,827,759
See information disaggregated by security type and industry classification in the Consolidated Schedule of Investments.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

Assets:	Beginningbalance at 12/31/2016		Included in earnings			Purchases		Sales			Prepayments			Transfersinto Level 3		Transfersout of Level 3		Endingbalance at 3/31/2017
Restricted Securities
Corporate Bonds	$	69,600,395	$	1,176,926		$	1,611,393	$	(6,900	)	$	(2,285,493	)	$	—	$	—	$	70,096,321
Bank Loans		5,132,890		13,360			281,750		—			—			—		—		5,428,000
Common Stock - U.S.		5,972,591		(79,876	)		104,545		(249,896	)		—			—		—		5,747,364
Preferred Stock		3,878,030		108,001			—		(198,159	)		—			—		—		3,787,872
Partnerships and LLCs		10,187,680		(36,301	)		1,067,399		(450,576	)		—			—		—		10,768,202
	$	94,771,586	$	1,182,110		$	3,065,087	$	(905,531	)	$	(2,285,493	)	$	—	$	—	$	95,827,759
There were no transfers into or out of Level 1 and Level 2 assets.

ITEM 2. CONTROLS AND PROCEDURES.

(a) The principal executive officer and principal financial officer of the Registrant evaluated the effectiveness of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act") as of a date within 90 days of the filing date of this report and based on that evaluation have concluded that such disclosure controls and procedures are effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There have been changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act)("internal controls") that occurred during the Registrant's last fiscal quarter.  The Registrant's investment adviser, Barings LLC, who maintains the Registrant's internal controls, revised its internal controls to oversee State Street Bank & Trust who now provides certain administrative and accounting services to the Registrant.

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) are attached hereto as an exhibit.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)  Barings Participation Investors

By (Signature and Title)* /s/ Robert M. Shettle                                                     Robert M. Shettle, President

Date    May 30, 2017                                  

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ Robert M. Shettle                                                      Robert M. Shettle, President

Date    May 30, 2017                                  

By (Signature and Title)* /s/ James M. Roy                                                            James M. Roy, Vice President and Chief Financial Officer

Date    May 30, 2017                                  

* PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.