UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2020

OR

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

Commission File Number: 814-00646

APOLLO INVESTMENT CORPORATION

(Exact name of Registrant as specified in its charter)

Maryland	52-2439556
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
9 West 57th Street 37th Floor New York, New York	10019
(Address of principal executive offices)	(Zip Code)

(212) 515-3450

(Registrant’s telephone number, including area code)

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

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	AINV	NASDAQ Global Select Market

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

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ¨  No ¨

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

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨

(Do not check if a smaller reporting company)

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

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of November 4, 2020 was 65,259,176.

APOLLO INVESTMENT CORPORATION

Table of Contents

		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Statements of Assets and Liabilities September 30, 2020 and March 31, 2020	1
	Statements of Operations Three and six months ended September 30, 2020 and September 30, 2019	2
	Statements of Changes in Net Assets Three and six months ended September 30, 2020 and September 30, 2019	3
	Statements of Cash Flows Six months ended September 30, 2020 and September 30, 2019	4
	Schedule of Investments September 30, 2020	5
	Schedule of Investments March 31, 2020	34
	Notes to Financial Statements	66
	Report of Independent Registered Public Accounting Firm	94
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	95
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	112
Item 4.	Controls and Procedures	114
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	115
Item 1A.	Risk Factors	115
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	117
Item 3.	Defaults Upon Senior Securities	119
Item 4.	Mine Safety Disclosures	119
Item 5.	Other Information	119
Item 6.	Exhibits	120
	Signatures	121

PART I. FINANCIAL INFORMATION

In this report, the terms the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” and “our” refer to Apollo Investment Corporation unless the context specifically states otherwise.

Item 1. Financial Statements

APOLLO INVESTMENT CORPORATION

STATEMENTS OF ASSETS AND LIABILITIES

(In thousands, except share and per share data)

	September 30, 2020		March 31, 2020
	(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $2,110,330 and $2,298,548, respectively)	$	2,046,701	$	2,191,327
Non-controlled/affiliated investments (cost — $146,430 and $135,346, respectively)	56,976		60,241
Controlled investments (cost — $633,778 and $655,719, respectively)	482,906		533,865
Cash and cash equivalents	25,825		37,301
Foreign currencies (cost — $5,539 and $6,369, respectively)	5,509		6,375
Receivable for investments sold	609		978
Interest receivable	16,876		19,151
Dividends receivable	3,160		5,034
Deferred financing costs	13,732		16,054
Prepaid expenses and other assets	1,075		732
Total Assets	$	2,653,369	$	2,871,058
Liabilities
Debt	$	1,600,328	$	1,794,617
Payable for investments purchased	39		—
Distributions payable	23,493		29,367
Management and performance-based incentive fees payable	9,262		10,289
Interest payable	2,440		2,887
Accrued administrative services expense	2,324		2,796
Other liabilities and accrued expenses	7,745		6,787
Total Liabilities	$	1,645,631	$	1,846,743
Commitments and contingencies (Note 8)
Net Assets	$	1,007,738	$	1,024,315
Net Assets
Common stock, $0.001 par value (130,000,000 shares authorized; 65,259,176 and 65,259,176 shares issued and outstanding, respectively)	$	65	$	65
Capital in excess of par value	2,099,876		2,099,876
Accumulated under-distributed (over-distributed) earnings	(1,092,203)		(1,075,626)
Net Assets	$	1,007,738	$	1,024,315
Net Asset Value Per Share	$	15.44	$	15.70

See notes to financial statements.

1

APOLLO INVESTMENT CORPORATION

STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share data)

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	46,139	$	51,489	$	93,502	$	98,493
Dividend income	—		5		—		66
PIK interest income	925		732		2,073		5,438
Other income	163		2,185		547		3,122
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income)	4		—		12		—
Dividend income	331		313		676		632
PIK interest income	—		—		—		—
Other income	—		—		—		—
Controlled investments:
Interest income (excluding PIK interest income)	6,438		12,271		12,331		24,910
Dividend income	891		2,451		1,691		2,451
PIK interest income	—		872		728		1,722
Other income	—		—		—		—
Total Investment Income	$	54,891	$	70,318	$	111,560	$	136,834
Expenses
Management fees	$	9,262	$	10,190	$	18,786	$	19,729
Performance-based incentive fees	—		1,911		—		1,911
Interest and other debt expenses	13,845		18,735		29,237		36,246
Administrative services expense	1,201		1,542		2,389		3,267
Other general and administrative expenses	2,777		2,305		5,224		5,609
Total expenses	27,085		34,683		55,636		66,762
Management and performance-based incentive fees waived	—		—		—		—
Expense reimbursements	(100)		(99)		(210)		(196)
Net Expenses	$	26,985	$	34,584	$	55,426	$	66,566
Net Investment Income	$	27,906	$	35,734	$	56,134	$	70,268
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments	$	590	$	(5,701)	$	(8,039)	$	(5,710)
Non-controlled/affiliated investments	(3,653)		—		(3,653)		1,089
Controlled investments	—		—		—		—
Foreign currency transactions	64		(1,387)		276		(1,185)
Extinguishment of debt	—		(4,375)		—		(4,375)
Net realized gains (losses)	(2,999)		(11,463)		(11,416)		(10,181)
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments	21,680		(7,463)		32,248		(11,508)
Non-controlled/affiliated investments	5,957		(1,659)		(3,006)		(750)
Controlled investments	(11,769)		(13,069)		(29,017)		(22,765)
Foreign currency translations	(7,486)		4,988		(8,660)		5,833
Net change in unrealized gains (losses)	8,382		(17,203)		(8,435)		(29,190)
Net Realized and Change in Unrealized Gains (Losses)	$	5,383	$	(28,666)	$	(19,851)	$	(39,371)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	33,289	$	7,068	$	36,283	$	30,897
Earnings (Loss) Per Share — Basic	$	0.51	$	0.10	$	0.56	$	0.45

See notes to financial statements.

2

APOLLO INVESTMENT CORPORATION

STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)

(In thousands, except share data)

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Operations
Net investment income	$	27,906	$	35,734	$	56,134	$	70,268
Net realized gains (losses)	(2,999)		(11,463)		(11,416)		(10,181)
Net change in unrealized gains (losses)	8,382		(17,203)		(8,435)		(29,190)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	33,289	$	7,068	$	36,283	$	30,897
Distributions to Stockholders
Distribution of net investment income	$	(23,494)	$	(30,171)	$	(52,860)	$	(60,795)
Distribution of return of capital	—		—		—		—
Net Decrease in Net Assets Resulting from Distributions to Stockholders	$	(23,494)	$	(30,171)	$	(52,860)	$	(60,795)
Capital Share Transactions
Repurchase of common stock	$	—	$	(14,215)	$	—	$	(29,337)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions	$	—	$	(14,215)	$	—	$	(29,337)
Net Assets
Net increase (decrease) in net assets during the period	$	9,795	$	(37,318)	$	(16,577)	$	(59,235)
Net assets at beginning of period	997,943		1,290,710		1,024,315		1,312,627
Net Assets at End of Period	$	1,007,738	$	1,253,392	$	1,007,738	$	1,253,392
Capital Share Activity
Shares repurchased during the period	—		(880,001)		—		(1,829,634)
Shares issued and outstanding at beginning of period	65,259,176		67,927,353		65,259,176		68,876,986
Shares Issued and Outstanding at End of Period	65,259,176		67,047,352		65,259,176		67,047,352

See notes to financial statements.

3

APOLLO INVESTMENT CORPORATION

STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)

	Six Months Ended September 30,
	2020		2019
Operating Activities
Net increase (decrease) in net assets resulting from operations	$	36,283	$	30,897
Net realized (gains) losses	11,416		10,181
Net change in unrealized (gains) losses	8,435		29,190
Net amortization of premiums and accretion of discounts on investments	(5,457)		(4,337)
Accretion of discount on notes	297		297
Amortization of deferred financing costs	2,510		2,526
Increase in gains/(losses) from foreign currency transactions	276		(1,185)
PIK interest and dividends capitalized	(3,033)		(5,982)
Changes in operating assets and liabilities:
Purchases of investments	(243,716)		(912,673)
Proceeds from sales and repayments of investments	439,998		486,112
Decrease (increase) in interest receivable	2,326		(4,402)
Decrease (increase) in dividends receivable	1,874		(633)
Decrease (increase) in prepaid expenses and other assets	(343)		(393)
Increase (decrease) in management and performance-based incentive fees payable	(1,027)		3,221
Increase (decrease) in interest payable	(447)		(2,152)
Increase (decrease) in accrued administrative services expense	(472)		(629)
Increase (decrease) in other liabilities and accrued expenses	958		64
Net Cash Used in/Provided by Operating Activities	$	249,878	$	(369,898)
Financing Activities
Issuances of debt	$	60,481	$	799,134
Payments of debt	(263,932)		(342,797)
Financing costs paid and deferred	—		(184)
Repurchase of common stock	—		(29,337)
Distributions paid	(58,733)		(61,664)
Net Cash Used in/Provided by Financing Activities	$	(262,184)	$	365,152
Cash, Cash Equivalents and Foreign Currencies
Net increase (decrease) in cash, cash equivalents and foreign currencies during the period	$	(12,306)	$	(4,746)
Effect of foreign exchange rate changes on cash and cash equivalents	(36)		(5)
Cash, cash equivalents and foreign currencies at beginning of period	43,676		41,189
Cash, Cash Equivalents and Foreign Currencies at the End of Period	$	31,334	$	36,438
Supplemental Disclosure of Cash Flow Information
Cash interest paid	$	26,908	$	35,627
Non-Cash Activity
PIK income	$	2,801	$	7,160

See notes to financial statements.

4

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Advertising, Printing & Publishing
Learfield Communications
A-L Parent LLC	Second Lien Secured Debt	8.25% (1M L+725, 1.00% Floor)	12/02/24	$	5,536	$	5,507	$	3,654
Simplifi Holdings, Inc.
Simplifi Holdings, Inc.	First Lien Secured Debt	7.00% (3M L+600, 1.00% Floor)	08/02/25	38,635		38,053		37,441		(9)
	First Lien Secured Debt - Revolver	7.00% (3M L+600, 1.00% Floor)	08/02/25	1,200		1,200		1,163		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/02/25	1,200		(44)		(37)		(8)(9) (21)(23)
						39,209		38,567
		Total Advertising, Printing & Publishing				$	44,716	$	42,221
Aerospace & Defense
Erickson Inc
Erickson Inc	First Lien Secured Debt - Revolver	9.00% (3M L+750, 1.50% Floor)	04/28/22	$	30,169	$	30,169	$	29,566	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/28/22	5,085		(147)		(102)		(8)(9) (21)(23)
	First Lien Secured Debt - Letters of Credit	7.50%	10/01/20 - 07/15/22	2,246		—		(43)		(8)(9) (23)
		Total Aerospace & Defense				$	30,022	$	29,421
Automotive
Accelerate Parent Corp. (American Tire)
Accelerate Parent Corp.	Common Equity - Common Stock	N/A	N/A	1,664,046 Shares		$	1,714	$	—	(13)(19)
Arlington
Arlington Industries Group Limited	First Lien Secured Debt	5.75% (1M E+525, 0.50% Floor)	03/29/24	€	2,495	2,799		2,912		(9)(17)
	First Lien Secured Debt	5.75% (1M GBPL+525, 0.50% Floor)	03/29/24	£	3,627	4,611		4,636		(9)(17)
						7,410		7,548
Crowne Automotive
Vari-Form Group, LLC	First Lien Secured Debt	L+11.00% (7.00% Cash plus 4.00% PIK)	02/02/23	5,860		901		762		(9)(13) (14)
Vari-Form Inc.	First Lien Secured Debt	L+11.00% (7.00% Cash plus 4.00% PIK)	02/02/23	2,110		391		274		(9)(13) (14)
						1,292		1,036
K&N Parent, Inc.
K&N Parent, Inc.	Second Lien Secured Debt	9.75% (1M L+875, 1.00% Floor)	10/21/24	23,765		23,519		21,566
Truck-Lite Co., LLC
Truck-Lite Co., LLC	First Lien Secured Debt	7.25% (3M L+625, 1.00% Floor)	12/14/26	25,022		24,492		24,494		(9)
	First Lien Secured Debt - Revolver	7.25% (1M L+625, 1.00% Floor)	12/13/24	218		218		215		(9)(23)
	First Lien Secured Debt - Revolver	7.25% (3M L+625, 1.00% Floor)	12/13/24	436		436		429		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/13/24	2,304		(60)		(36)		(8)(9) (21)(23)
	First Lien Secured Debt - Letters of Credit	6.25%	11/30/20 - 12/21/20	94		—		(1)		(8)(9) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	12/14/26	3,708		(77)		(78)		(8)(9) (21)(23)
TL Lighting Holdings, LLC	Common Equity - Equity	N/A	N/A	350 Shares		350		301		(9)(13) (28)
						25,359		25,324
		Total Automotive				$	59,294	$	55,474

See notes to financial statements.

5

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Aviation and Consumer Transport
Merx Aviation Finance, LLC
Merx Aviation Finance, LLC (5)	First Lien Secured Debt - Revolver	10.00%	10/31/23	$	200,000	$	200,000	$	200,000	(23)
	First Lien Secured Debt - Letter of Credit	2.25%	07/13/21	177		—		—		(23)
	Common Equity - Membership Interests	N/A	N/A	N/A		120,300		123,544		(28)
						320,300		323,544
Primeflight
PrimeFlight Aviation Services, Inc.	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	05/09/24	14,699		14,529		14,210		(9)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	05/09/24	2,842		(87)		(95)		(8)(9) (21)(23)
						14,442		14,115
		Total Aviation and Consumer Transport				$	334,742	$	337,659
Beverage, Food & Tobacco
Bolthouse Farms
Wm. Bolthouse Farms, Inc.	Common Equity - Common Stock	N/A	N/A	1,000,000 Shares		$	1,000	$	1,160	(13)
Eagle Foods
Eagle Foods Family Group, LLC	First Lien Secured Debt	7.50% (3M L+650, 1.00% Floor)	06/14/24	24,437		24,267		23,827		(9)
	First Lien Secured Debt - Revolver	7.50% (3M L+650, 1.00% Floor)	06/14/23	1,333		1,333		1,300		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/14/23	2,417		(23)		(60)		(8)(9) (21)(23)
						25,577		25,067
Florida Food Products, Inc.
Florida Food Products, Inc.	First Lien Secured Debt	7.50% (3M L+650, 1.00% Floor)	09/08/25	22,822		22,418		22,594		(9)
	First Lien Secured Debt	8.25% (3M L+725, 1.00% Floor)	09/08/25	2,992		2,789		2,991		(9)
Florida Food Products, LLC	First Lien Secured Debt - Revolver	7.50% (3M L+650, 1.00% Floor)	09/06/23	1,712		1,687		1,695		(9)(23)
						26,894		27,280
Orgain, Inc.
Butterfly Fighter Co-Invest, L.P.	Common Equity - Membership Interests	N/A	N/A	1,000,000 Shares		1,005		1,263		(13)(28)
TNT Crust LLC
TNT Crust LLC	First Lien Secured Debt	7.75% (3M L+675, 1.00% Floor)	11/06/23	26,341		25,967		25,814		(9)
	First Lien Secured Debt - Revolver	7.75% (3M L+675, 1.00% Floor)	11/06/23	1,236		1,236		1,211		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/06/23	2,016		(43)		(40)		(8)(9) (21)(23)
	Common Equity - Series A Units	N/A	N/A	244 Shares		30		288		(9)(13)
						27,190		27,273
Turkey Hill
IC Holdings LLC	Common Equity - Series A Units	N/A	N/A	169 Shares		169		418		(9)(13)
THLP CO. LLC	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	05/30/25	19,562		19,257		19,366		(9)
	First Lien Secured Debt	7.75% (P+450)	05/30/25	22		22		22		(9)
	First Lien Secured Debt	6.50% (12M L+550, 1.00% Floor)	05/30/25	2,779		2,754		2,752		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	05/31/24	4,494		(66)		(45)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	05/30/25	2,809		(44)		(28)		(8)(9) (21)(23)
						22,092		22,485
		Total Beverage, Food & Tobacco				$	103,758	$	104,528

See notes to financial statements.

6

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Business Services
Access Information
Access CIG, LLC	Second Lien Secured Debt	7.91% (1M L+775)	02/27/26	$	15,900	$	15,798	$	15,695
Ambrosia Buyer Corp.
Ambrosia Buyer Corp.	Second Lien Secured Debt	9.00% (6M L+800, 1.00% Floor)	08/28/25	21,429		21,099		16,646
AML Rightsource
Gabriel Partners, LLC	First Lien Secured Debt	7.25% (1M L+625, 1.00% Floor)	09/21/26	8,004		7,805		7,804		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/21/26	665		(17)		(17)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.75% Unfunded	09/21/26	1,330		(20)		(20)		(8)(9) (21)(23)
						7,768		7,767
Claritas
Claritas, LLC	First Lien Secured Debt	7.00% (3M L+600, 1.00% Floor)	12/21/23	3,795		3,770		3,748		(9)
	First Lien Secured Debt - Revolver	7.00% (3M L+600, 1.00% Floor)	12/21/23	387		387		382		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/21/23	644		(7)		(8)		(8)(9) (21)(23)
						4,150		4,122
Continuum
Continuum Global Solutions, LLC	First Lien Secured Debt - Revolver	6.50% (1M L+550, 1.00% Floor)	02/15/22	3,509		3,509		3,422		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/15/22	16,491		(223)		(412)		(8)(9) (21)(23)
	Preferred Equity - Preferred Equity	N/A	N/A	775 Shares		78		78		(9)(13)
						3,364		3,088
CT Technologies Intermediate Holdings, Inc
CT Technologies Intermediate Holdings, Inc	Second Lien Secured Debt	10.00% (1M L+900, 1.00% Floor)	12/01/22	31,253		30,887		29,690		(9)
Education Personnel
Arthur Bidco Limited	First Lien Secured Debt	5.25% (3M GBPL+475, 0.50% Floor)	08/31/24	£	4,035	5,149		4,945		(9)(17)
	First Lien Secured Debt - Revolver	5.25% (3M GBPL+475, 0.50% Floor)	08/31/24	£	1,471	1,877		1,802		(9)(17) (23)
						7,026		6,747
Electro Rent Corporation
Electro Rent Corporation	Second Lien Secured Debt	10.00% (3M L+900, 1.00% Floor)	01/31/25	34,235		33,608		33,379		(9)
Elo Touch
TGG TS Acquisition Company	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/14/23	1,750		—		(61)		(8)(21) (23)
Ensemble Health
EHL Merger Sub, LLC	First Lien Secured Debt - Unfunded Revolver	0.25% Unfunded	08/01/24	4,155		(292)		(202)		(8)(21) (23)
Jacent
Jacent Strategic Merchandising	First Lien Secured Debt	6.75% (3M L+575, 1.00% Floor)	04/23/24	22,466		22,225		21,373		(9)
	First Lien Secured Debt - Revolver	6.75% (3M L+575, 1.00% Floor)	04/23/24	2,567		2,567		2,441		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/23/24	933		(37)		(46)		(8)(9) (21)(23)
	Common Equity - Common Stock	N/A	N/A	5,000 Shares		500		251		(9)(13)
JSM Equity Investors, L.P.	Preferred Equity - Class P Partnership Units	N/A	N/A	114 Shares		11		11		(9)(13) (28)
						25,266		24,030

See notes to financial statements.

7

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)	Fair Value (1)(30)
Jones & Frank
JF Acquisition, LLC	First Lien Secured Debt	6.50% (12M L+550, 1.00% Floor)	07/31/24	13,139		12,936	12,902	(9)
	First Lien Secured Debt	6.50% (3M L+550, 1.00% Floor)	07/31/24	210		207	206	(9)
	First Lien Secured Debt - Revolver	6.50% (12M L+550, 1.00% Floor)	07/31/24	628		628	616	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	07/31/24	941		(24)	(17)	(8)(9) (21)(23)
						13,747	13,707
MAKS
Trident Bidco Limited	First Lien Secured Debt	7.25% (6M L+625, 1.00% Floor)	11/08/25	35,000		34,105	33,908	(9)(17)
McLarens
Margaux Acquisition Inc.	First Lien Secured Debt	6.75% (3M L+575, 1.00% Floor)	12/19/24	22,285		22,041	21,820	(9)
	First Lien Secured Debt - Revolver	6.75% (1M L+575, 1.00% Floor)	12/19/24	1,601		1,579	1,566	(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	12/19/24	881		(82)	(18)	(8)(9) (21)(23)
Margaux UK Finance Limited	First Lien Secured Debt	6.50% (3M GBPL+575, 1.00% Floor)	12/19/24	£	5,866	7,308	7,437	(9)(17)
	First Lien Secured Debt	6.75% (3M GBPL+575, 1.00% Floor)	12/19/24	£	1,353	1,687	1,716	(9)(17)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/19/24	£	541	(10)	(16)	(8)(9) (17)(21) (23)
						32,523	32,505
Newscycle Solutions, Inc.
Newscycle Solutions, Inc.	First Lien Secured Debt	8.00% (3M L+700, 1.00% Floor)	12/29/22	15,510		15,335	15,045	(9)
	First Lien Secured Debt - Revolver	8.00% (3M L+700, 1.00% Floor)	12/29/22	500		494	485	(9)(23)
						15,829	15,530
PSI Services, LLC
Lifelong Learner Holdings, LLC	First Lien Secured Debt	6.75% (3M L+575, 1.00% Floor)	10/19/26	32,700		32,120	30,679	(9)
	First Lien Secured Debt - Revolver	6.75% (3M L+575, 1.00% Floor)	10/20/25	1,039		1,039	983	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	10/20/25	1,946		(50)	(105)	(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	10/19/26	2,388		(21)	(148)	(8)(9) (21)(23)
						33,088	31,409
RA Outdoors, LLC (Active Outdoors)
RA Outdoors, LLC	First Lien Secured Debt	5.75% (6M L+475, 1.00% Floor)	09/11/24	6,559		6,485	6,428	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/09/22	1,200		(9)	(12)	(8)(9) (21)(23)
	Second Lien Secured Debt	9.75% (6M L+875, 1.00% Floor)	09/11/25	31,950		31,454	30,991	(9)
						37,930	37,407
Soliant
Soliant Holdings, LLC	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	12/31/26	17,973		17,652	17,454	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/31/24	1,936		(33)	(40)	(8)(9) (21)(23)
Soliant Health, Inc.	Common Equity - Membership Interests	N/A	N/A	300 Shares		300	289	(9)(13) (28)
						17,919	17,703

See notes to financial statements.

8

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Transplace Holdings, Inc.
Transplace Holdings, Inc.	Second Lien Secured Debt	9.75% (6M L+875, 1.00% Floor)	10/06/25	8,599		8,463		8,255
US Legal Support
US Legal Support Investment Holdings, LLC	Common Equity - Series A-1 Units	N/A	N/A	631,972 Shares		632		442		(9)(13)
USLS Acquisition, Inc.	First Lien Secured Debt	6.75% (6M L+575, 1.00% Floor)	12/02/24	19,747		19,473		18,385		(9)
	First Lien Secured Debt	6.75% (3M L+575, 1.00% Floor)	12/02/24	4,627		4,557		4,317		(9)
	First Lien Secured Debt - Revolver	5.97% (3M L+575, 0.00% Floor)	12/02/24	536		536		498		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/02/24	972		(22)		(68)		(8)(9) (21)(23)
	First Lien Secured Debt - Letters of Credit	5.75%	10/15/20 - 06/06/21	101		—		(7)		(8)(9) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	12/02/24	670		(27)		—		(9)(21) (23)
						25,149		23,567
		Total Business Services				$	367,427	$	354,892
Chemicals, Plastics & Rubber
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)
Carbonfree Chemicals Holdings LLC (4)	Common Equity - Common Equity / Interest	N/A	N/A	2,288 Shares		$	45,427	$	24,895	(13)(28)
Carbonfree Chemicals SA LLC (4)	Common Equity - Class B Units	N/A	N/A	3,152 Shares		32,460		—		(13)(28)
						77,887		24,895
Niacet Corporation
Hare Bidco, Inc.	Second Lien Secured Debt	9.75% (3M E+875, 1.00% Floor)	08/01/24	€	11,351	12,147		13,244
Westfall Technik, Inc.
Westfall Technik, Inc.	First Lien Secured Debt	7.25% (1M L+625, 1.00% Floor)	09/13/24	15,227		15,019		14,565		(9)
	First Lien Secured Debt	7.25% (3M L+625, 1.00% Floor)	09/13/24	631		621		604		(9)
	First Lien Secured Debt - Revolver	7.25% (1M L+625, 1.00% Floor)	09/13/24	1,750		1,723		1,673		(9)(23)
	First Lien Secured Debt - Revolver	8.50% (P+525)	09/13/24	269		269		257		(9)(23)
						17,632		17,099
		Total Chemicals, Plastics & Rubber				$	107,666	$	55,238
Construction & Building
Englert
Gutter Buyer, Inc.	First Lien Secured Debt	6.75% (1M L+575, 1.00% Floor)	03/06/25	$	28,089	$	27,687	$	27,502	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/06/24	2,688		(47)		(48)		(8)(9) (21)(23)
	First Lien Secured Debt - Letter of Credit	5.75%	07/01/21	39		—		(1)		(8)(9) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	03/06/25	736		(38)		(15)		(8)(9) (21)(23)
Gutter Holdings, LP	Common Equity - Common Stock	N/A	N/A	500 Shares		500		998		(9)(13)
		Total Construction & Building				$	28,102	$	28,436

See notes to financial statements.

9

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Consumer Goods – Durable
A&V
A&V Holdings Midco, LLC	First Lien Secured Debt	6.38% (3M L+538, 1.00% Floor)	03/10/27	$	143	$	142	$	134
	First Lien Secured Debt	6.38% (6M L+538, 1.00% Floor)	03/10/27	10,997		10,627		10,337
	First Lien Secured Debt - Unfunded Revolver	0.375% Unfunded	03/10/25	1,505		(120)		(154)		(8)(21) (23)
						10,649		10,317
Hayward Industries, Inc.
Hayward Industries, Inc.	Second Lien Secured Debt	8.40% (1M L+825)	08/04/25	21,919		21,714		21,559
KDC
KDC US Holdings	First Lien Secured Debt - Unfunded Revolver	0.25% Unfunded	12/21/23	5,894		—		(200)		(8)(21) (23)
	First Lien Secured Debt - Letter of Credit	3.00%	02/05/21	£	8	—		—		(23)
	First Lien Secured Debt - Letters of Credit	3.00%	11/06/20 - 03/16/21	118		—		(3)		(8)(23)
						—		(203)
KLO Holdings, LLC
1244311 B.C. Ltd. (4)	First Lien Secured Debt	6.00% (1M L+500 PIK, 1.00% Floor)	09/25/25	1,000		1,000		941		(17)
	First Lien Secured Debt	6.00% (1M L+500, 1.00% Floor)	09/25/25	3,000		3,000		2,804		(17)
	Common Equity - Common Stock	N/A	N/A	1,000,032 Shares		1,000		1,099		(2)(13) (17)(28)
9357-5991 Quebec Inc. (4)	First Lien Secured Debt	11.25% (3M L+775 Cash plus 2.00% PIK)	04/07/22	3,763		—		—		(13)(14)
KLO Acquisition LLC (4)	First Lien Secured Debt	11.25% (3M L+775 Cash plus 2.00% PIK)	04/07/22	5,657		4,808		—		(13)(14)
						9,808		4,844
Liqui-Box
Liqui-Box Holdings, Inc.	First Lien Secured Debt - Revolver	5.50% (3M L+450, 1.00% Floor)	02/26/25	1,661		1,662		1,640		(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/26/25	1,825		(31)		(23)		(8)(21) (23)
	First Lien Secured Debt - Letter of Credit	4.50%	06/30/21	€	42	—		(1)		(8)(23)
	First Lien Secured Debt - Letters of Credit	4.50%	10/01/20 - 09/27/21	32		—		—		(23)
						1,631		1,616
NSi Industries
Wildcat BuyerCo, Inc.	First Lien Secured Debt	6.50% (3M L+550, 1.00% Floor)	02/27/26	7,210		7,000		7,009
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/27/26	717		(15)		(20)		(8)(21) (23)
	First Lien Secured Debt - Letter of Credit	5.50%	02/27/26	8		—		—		(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	02/27/26	2,029		(32)		(57)		(8)(21) (23)
Wildcat Parent LP	Common Equity - Common Stock	N/A	N/A	1,070 Shares		107		114		(13)(28)
						7,060		7,046
Sorenson Holdings, LLC
Sorenson Holdings, LLC	Common Equity - Membership Interests	N/A	N/A	587 Shares		—		475		(10)(13)
		Total Consumer Goods – Durable				$	50,862	$	45,654

See notes to financial statements.

10

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Consumer Goods – Non-durable
3D Protein
Protein For Pets Opco, LLC	First Lien Secured Debt	6.00% (3M L+500, 1.00% Floor)	11/28/25	$	11,487	$	11,304	$	11,257	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	05/31/24	2,219		(42)		(44)		(8)(9) (21)(23)
						11,262		11,213
Beauty Industry Group (BIG)
BIG Buyer, LLC	First Lien Secured Debt	7.50% (6M L+650, 1.00% Floor)	11/20/23	22,255		21,843		21,901		(9)
	First Lien Secured Debt - Revolver	7.50% (1M L+650, 1.00% Floor)	11/20/23	602		602		585		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/20/23	1,204		(34)		(34)		(8)(9) (21)(23)
						22,411		22,452
Dan Dee
Project Comfort Buyer, Inc.	First Lien Secured Debt	9.25% (P+600)	02/01/25	347		340		329		(9)
	First Lien Secured Debt	8.00% (12M L+700, 1.00% Floor)	02/01/25	26,457		25,899		25,126		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/01/24	3,462		(69)		(185)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	02/01/25	2,308		(25)		(116)		(8)(9) (21)(23)
	Preferred Equity - Preferred Equity	N/A	N/A	461,538 Shares		462		194		(9)(13)
						26,607		25,348
DMC
Lion Cashmere Midco Limited	First Lien Secured Debt	6.50% (6M L+550, 1.00% Floor)	03/21/25	13,053		12,882		12,284		(9)(17)
	First Lien Secured Debt	5.50% (6M E+550)	03/21/25	€	534	578		589		(9)(17)
	First Lien Secured Debt - Revolver	5.00% (6M E+500)	03/21/24	€	605	674		667		(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	1.75% Unfunded	03/21/24	€	581	(16)		(41)		(8)(9) (17)(21) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.93% Unfunded	03/21/25	€	1,838	(20)		(128)		(8)(9) (17)(21) (23)
						14,098		13,371
LashCo
Lash OpCo, LLC	First Lien Secured Debt	9.25% (P+600, 1.00% Floor)	03/18/26	6,803		6,634		6,633		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/18/25	697		(17)		(17)		(8)(9) (21)(23)
						6,617		6,616
Olaplex
Olaplex, Inc.	First Lien Secured Debt	7.50% (1M L+650, 1.00% Floor)	01/08/26	12,457		12,238		12,287		(9)
	First Lien Secured Debt - Revolver	7.50% (1M L+650, 1.00% Floor)	01/08/25	1,150		1,150		1,137		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/08/25	1,150		(39)		(13)		(8)(9) (21)(23)
						13,349		13,411

See notes to financial statements.

11

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Sequential Brands Group, Inc.
Sequential Brands Group, Inc.	Second Lien Secured Debt	9.75% (1M L+875, 1.00% Floor)	02/07/24	12,922		12,850		12,293		(17)
		Total Consumer Goods – Non-durable				$	107,194	$	104,704
Consumer Services
Clarus Commerce
Marlin DTC-LS Midco 2, LLC	First Lien Secured Debt	6.50% (6M L+550, 1.00% Floor)	07/01/25	$	9,199	$	9,071	$	8,966
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	07/01/25	685		(9)		(17)		(8)(21) (23)
						9,062		8,949
First Heritage
First Heritage Credit, LLC	First Lien Secured Debt	4.91% (1M L+475)	04/02/22	16,500		16,417		16,223		(9)
	First Lien Secured Debt - Revolver	5.66% (1M L+550)	04/02/22	892		892		878		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/02/22	2,858		(19)		(46)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	04/02/22	9,750		(49)		(164)		(8)(9) (21)(23)
						17,241		16,891
Only About Children
Nemo (BC) Bidco Pty Ltd	First Lien Secured Debt	6.75% (6M BBSW+575, 1.00% Floor)	04/06/24	A$	6,768	4,930		4,608		(17)
	First Lien Secured Debt - Unfunded Delayed Draw	2.59% Unfunded	04/06/24	A$	232	(6)		(8)		(8)(17) (21)(23)
						4,924		4,600
Paper Source
Paper Source, Inc.	First Lien Secured Debt	8.00% (3M L+700, 1.00% Floor)	05/22/24	11,471		11,303		9,062		(9)
	First Lien Secured Debt	12.25% (P+900)	02/01/21	1,027		984		811		(9)
	First Lien Secured Debt - Revolver	9.25% (P+600)	05/22/24	1,890		1,890		1,493		(9)(23)
	First Lien Secured Debt - Revolver	8.00% (3M L+700, 1.00% Floor)	05/22/24	1,191		1,147		941		(9)(23)
	Preferred Equity - Preferred Equity	N/A	N/A	411 Shares		—		—		(9)(13) (28)
						15,324		12,307
Pinstripe Holdings, LLC
Pinstripe Holdings, LLC	First Lien Secured Debt	6.27% (6M L+600)	01/17/25	6,895		6,796		6,643
The Club Company
Eldrickco Limited	First Lien Secured Debt	6.75% (6M GBPL+625, 0.50% Floor)	11/21/25	£	10,619	13,288		12,808		(9)(17)
	First Lien Secured Debt - Revolver	6.25% (6M GBPL+575, 0.50% Floor)	05/21/25	£	345	395		421		(9)(17) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.93% Unfunded	11/21/25	£	3,991	(95)		(294)		(8)(9) (17)(21) (23)
						13,588		12,935
Tidewater Consumer Receivables, LLC
Tidewater Consumer Receivables, LLC	First Lien Secured Debt	10.90% (1M L +1075)	06/30/22	2,608		2,591		2,582		(9)(17)
	First Lien Secured Debt	5.90% (1M L+575)	06/30/22	3,761		3,736		3,723		(9)(17)
						6,327		6,305

See notes to financial statements.

12

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
US Auto
U.S. Auto Finance, Inc.	First Lien Secured Debt	6.25% (3M L+525, 1.00% Floor)	04/17/22	10,279		10,270		10,164		(9)
	First Lien Secured Debt - Revolver	7.00% (3M L+600, 1.00% Floor)	04/17/22	7,817		7,817		7,729		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/17/22	5,516		(54)		(62)		(8)(9) (21)(23)
						18,033		17,831
		Total Consumer Services				$	91,295	$	86,461
Containers, Packaging & Glass
TricorBraun Holdings, Inc.
TricorBraun Holdings, Inc.	First Lien Secured Debt - Unfunded Revolver	0.38% Unfunded	11/30/21	$	5,625	$	(118)	$	(29)	(8)(21) (23)
		Total Containers, Packaging & Glass				$	(118)	$	(29)
Diversified Investment Vehicles, Banking, Finance, Real Estate
Celink
Compu-Link Corporation	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/11/24	$	2,273	$	(38)	$	(64)	(8)(9) (21)(23)
Peer Advisors, LLC	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	06/11/24	19,943		19,611		19,383		(9)
						19,573		19,319
Exeter Property Group, LLC
Exeter Property Group, LLC	First Lien Secured Debt	4.66% (1M L+450)	08/28/24	4,575		4,526		4,481		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/28/24	192		(2)		(4)		(8)(9) (21)(23)
						4,524		4,477
Flock Financial, LLC
Flock SPV I, LLC	First Lien Secured Debt	7.50% (1M L+650)	08/30/22	14,000		13,962		13,801		(9)(17)
	First Lien Secured Debt - Revolver	7.50% (1M L+650)	08/30/22	533		533		526		(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/30/22	800		(6)		(11)		(8)(9) (17)(21) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	08/30/22	4,667		(51)		(66)		(8)(9) (17)(21) (23)
						14,438		14,250
Golden Bear
Golden Bear 2016-R, LLC (4)	Structured Products and Other - Membership Interests	N/A	09/20/42	N/A		16,755		9,265		(3)(17)
Purchasing Power, LLC
Purchasing Power Funding I, LLC	First Lien Secured Debt - Revolver	6.66% (1M L+650)	01/24/22	8,316		8,316		8,213		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.40% Unfunded	01/24/22	797		—		(10)		(8)(9) (21)(23)
						8,316		8,203
Taupo River II, LLC
Taupo River II, LLC	First Lien Secured Debt	6.25% (3M L+525, 1.00% Floor)	12/06/20	815		814		815		(9)(17)
Ten-X, LLC
Ten-X, LLC	First Lien Secured Debt - Revolver	3.40% (1M L+325)	09/29/22	4,680		4,512		4,424		(23)
	Total Diversified Investment Vehicles, Banking, Finance, Real Estate					$	68,932	$	60,753

See notes to financial statements.

13

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Education
NFA Group
SSCP Spring Bidco Limited	First Lien Secured Debt	6.75% (6M GPBL+625, 0.50% Floor)	07/30/25	£	30,000	$	36,077	$	38,028	(9)(17)
		Total Education				$	36,077	$	38,028
Energy – Electricity
AMP Solar Group, Inc.
AMP Solar Group, Inc. (4)	Common Equity - Class A Common Unit	N/A	N/A	243,646 Shares		$	10,000	$	8,570	(13)(17) (28)
Renew Financial LLC (f/k/a Renewable Funding, LLC)
AIC SPV Holdings II, LLC (4)	Preferred Equity - Preferred Stock	N/A	N/A	534,375 Shares		534		412		(17)(15) (28)
Renew Financial LLC (f/k/a Renewable Funding, LLC) (4)	Preferred Equity - Series B Preferred Stock	N/A	N/A	1,505,868 Shares		8,343		3,544		(13)(28)
	Preferred Equity - Series D Preferred Stock	N/A	N/A	436,689 Shares		5,568		2,371		(13)(28)
Renew JV LLC (4)	Common Equity - Membership Interests	N/A	N/A	771,449 Shares		771		905		(13)(17) (28)
						15,216		7,232
Solarplicity Group Limited (f/k/a AMP Solar UK)
Solarplicity UK Holdings Limited	First Lien Secured Debt	4.00%	03/08/23	£	5,562	7,637		2,210		(13)(14) (17)
	Preferred Equity - Preferred Stock	N/A	N/A	4,286 Shares		5,705		—		(2)(13) (17)
	Common Equity - Ordinary Shares	N/A	N/A	2,825 Shares		4		—		(2)(13) (17)
						13,346		2,210
		Total Energy – Electricity				$	38,562	$	18,012
Energy – Oil & Gas
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (5)	Second Lien Secured Debt	10.00% PIK	03/29/21	$	39,135	$	36,926	$	10,333	(13)(14)
	Common Equity - Common Stock	N/A	N/A	5,000,000 Shares		30,078		—		(13)(28)
						67,004		10,333
Pelican
Pelican Energy, LLC (4)	Common Equity - Membership Interests	N/A	N/A	1,444 Shares		16,764		2,170		(13)(16) (17)(28)
Spotted Hawk
SHD Oil & Gas, LLC (5)	First Lien Secured Debt - Tranche C Note	12.00%	07/31/21	24,728		24,728		25,470
	First Lien Secured Debt - Tranche A Note	4.00%	07/31/21	45,917		44,528		16,820		(13)(14)
	First Lien Secured Debt - Tranche B Note	3.00% PIK	07/31/21	85,777		44,380		—		(13)(14)
	Common Equity - Series A Units	N/A	N/A	7,600,000 Shares		1,411		—		(13)(16) (28)
						115,047		42,290
		Total Energy – Oil & Gas				$	198,815	$	54,793

See notes to financial statements.

14

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Environmental Industries
Denali
Dispatch Acquisition Holdings, LLC	First Lien Secured Debt	6.50% (3M L+550, 1.00% Floor)	01/29/27	$	16,557	$	16,223	$	16,237	(9)
	First Lien Secured Debt - Revolver	6.50% (1M L+550, 1.00% Floor)	01/29/26	1,867		1,867		1,837		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/29/26	1,173		(65)		(19)		(8)(9) (21)(23)
	First Lien Secured Debt - Letters of Credit	5.50%	02/26/21 - 06/30/21	207		—		(3)		(8)(9) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.75% Unfunded	01/29/27	5,114		(61)		(99)		(8)(9) (21)(23)
						17,964		17,953
Ortega National Parks
Ortega National Parks, LLC	First Lien Secured Debt	6.25% (6M L+525, 1.00% Floor)	10/31/25	11,662		11,468		11,151		(9)
	First Lien Secured Debt - Revolver	6.25% (1M L+525, 1.00% Floor)	10/31/25	2,049		2,014		1,958		(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	10/31/25	6,202		(57)		(272)		(8)(9) (21)(23)
						13,425		12,837
		Total Environmental Industries				$	31,389	$	30,790
Food & Grocery
Bumble Bee Foods S.À R.L.
Connors Bros Clover Leaf Seafoods Company	First Lien Secured Debt	N/A	01/31/24	$	126	$	—	$	—
Bumble Bee Holdings Inc	First Lien Secured Debt	N/A	01/31/24	443		—		—
Tonos US LLC	First Lien Secured Debt	8.75% (3M L+725, 1.50% Floor)	01/31/24	9,454		9,561		9,454
		Total Food & Grocery				$	9,561	$	9,454
Healthcare & Pharmaceuticals
Altasciences, Inc.
9360-1367 Quebec Inc.	First Lien Secured Debt	7.25% (3M L+625, 1.00% Floor)	06/09/23	$	2,826	$	2,797	$	2,762	(9)(17)
	First Lien Secured Debt	8.49% (3M CADL+625, 1.00% Floor)	06/09/23	C$	2,345	1,728		1,716		(9)(17)
Altasciences US Acquistion, Inc.	First Lien Secured Debt	7.25% (3M L+625, 1.00% Floor)	06/09/23	5,965		5,898		5,831		(9)
	First Lien Secured Debt - Revolver	7.25% (3M L+625, 1.00% Floor)	06/09/23	392		392		383		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/09/23	1,033		(14)		(23)		(8)(9) (21)(23) (11)
						10,801		10,669
American Veterinary Group
AVG Intermediate Holdings LLC	First Lien Secured Debt	9.75% (1M L+825, 1.50% Floor)	02/08/24	13,225		13,026		13,101		(9)
AmeriVet
Amerivet Partners Management, Inc.	First Lien Secured Debt	7.25% (3M L+625, 1.00% Floor)	06/05/24	695		687		687		(9)
	First Lien Secured Debt	7.25% (6M L+625, 1.00% Floor)	06/05/24	26,310		25,884		26,015		(9)
	First Lien Secured Debt - Revolver	8.50% (P+525)	06/05/24	524		524		518		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/05/24	282		(12)		(3)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	06/05/24	6,952		(83)		(78)		(8)(9) (21)(23)

See notes to financial statements.

15

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)	Fair Value (1)(30)
Amerivet Partners Parent LP	Common Equity - Class D Partnership Units	N/A	N/A	13 Shares		125	198	(9)(13) (28)
						27,125	27,337
Analogic
Analogic Corporation	First Lien Secured Debt	6.25% (1M L+525, 1.00% Floor)	06/22/24	18,124		17,841	17,761	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/22/23	1,826		(25)	(37)	(8)(9) (21)(23)
						17,816	17,724
BioClinica Holding I, LP
BioClinica Holding I, LP	Second Lien Secured Debt	9.25% (1M L+825, 1.00% Floor)	10/21/24	24,612		24,330	23,778
BK Medical
BK Medical Holding Company, Inc.	First Lien Secured Debt	6.25% (1M L+525, 1.00% Floor)	06/22/24	7,268		7,207	7,134	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/22/24	783		(6)	(12)	(8)(9) (21)(23)
						7,201	7,122
CARE Fertility
Royton Bidco Limited	First Lien Secured Debt	6.75% (6M GBPL+625, 0.50% Floor)	05/09/25	£	17,363	22,068	21,546	(9)(17)
	First Lien Secured Debt	6.75% (1M GBPL+625, 0.50% Floor)	05/09/25	£	294	372	365	(9)(17)
	First Lien Secured Debt - Unfunded Delayed Draw	2.01% Unfunded	05/09/25	£	2,265	(67)	(118)	(8)(9) (17)(21) (23)
						22,373	21,793
Cerus
Cerus Corporation	First Lien Secured Debt	7.25% (1M L+545, 1.80% Floor)	03/01/24	12,000		11,958	12,360	(9)(17)
	First Lien Secured Debt - Revolver	5.55% (1M L+375, 1.80% Floor)	03/01/24	55		55	56	(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/01/24	445		(1)	—	(9)(17) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	03/01/24	9,000		(31)	—	(9)(17) (21)(23)
						11,981	12,416
Dohmen Life Science Services
LSCS Holdings, Inc	Second Lien Secured Debt	8.61% (6M L+825)	03/16/26	19,818		19,501	19,123
Emmes Corporation
Emmes Blocker, Inc.	Common Equity - Common Stock	N/A	N/A	306 Shares		306	418	(9)(13)
The Emmes Company, LLC	First Lien Secured Debt	6.09% (6M L+500, 1.00% Floor)	03/03/25	12,061		11,928	11,760	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/03/25	2,449		(27)	(61)	(8)(9) (21)(23)
						12,207	12,117
Genesis Healthcare, Inc.
Genesis Healthcare, Inc.	First Lien Secured Debt	6.50% (1M L+600, 0.50% Floor)	03/06/23	25,000		24,817	24,605	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/08/23	60,870		(384)	(1,190)	(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	2.00% Unfunded	03/06/23	6,848		—	(80)	(8)(9) (21)(23)
						24,433	23,335

See notes to financial statements.

16

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)	Cost (29)	Fair Value (1)(30)
Gossamer
GB001, Inc.	First Lien Secured Debt	9.00% (1M L+700, 2.00% Floor)	01/01/25	6,000	5,981	6,120	(9)(17)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	01/01/25	24,000	(177)	—	(9)(17) (21)(23)
					5,804	6,120
Health & Safety Institute
HSI Halo Acquisition, Inc.	First Lien Secured Debt	6.75% (1M L+575, 1.00% Floor)	08/31/26	6,366	6,312	6,181	(9)
	First Lien Secured Debt	6.75% (3M L+575, 1.00% Floor)	08/31/26	2,660	2,610	2,583	(9)
	First Lien Secured Debt - Revolver	8.00% (P+475)	08/30/25	374	374	365	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/30/25	439	(7)	(10)	(8)(9) (21)(23)
	Common Equity - Common Stock	N/A	N/A	500 Shares	500	425	(9)(13) (28)
					9,789	9,544
IMA Group
IMA Group Management Company, LLC	First Lien Secured Debt	6.50% (6M L+550, 1.00% Floor)	05/30/24	5,100	5,062	4,794
	First Lien Secured Debt - Revolver	6.50% (3M L+550, 1.00% Floor)	05/30/24	289	287	272	(23)
					5,349	5,066
Kindeva
Kindeva Drug Delivery L.P.	First Lien Secured Debt	7.00% (6M L+600, 1.00% Floor)	05/01/26	1,829	1,786	1,808	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	05/01/25	167	(4)	(2)	(8)(9) (21)(23)
					1,782	1,806
KureSmart
Clearway Corporation (f/k/a NP/Clearway Holdings, Inc.)	Common Equity - Common Stock	N/A	N/A	133 Shares	133	121	(9)(13)
Kure Pain Holdings, Inc.	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	08/27/24	21,991	21,733	21,134	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/27/24	2,654	(31)	(105)	(8)(9) (21)(23)
					21,835	21,150
Lanai Holdings III, Inc. (Patterson Medical)
Lanai Holdings III, Inc.	Second Lien Secured Debt	11.50% (3M L+1050 PIK, 1.00% Floor)	08/28/23	18,241	18,025	15,806
Mannkind Corporation
Mannkind Corporation	First Lien Secured Debt	8.75% (1M L+675, 2.00% Floor)	08/01/24	13,867	13,813	14,193	(9)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	08/01/24	8,667	(33)	—	(9)(21) (23)
					13,780	14,193
Maxor National Pharmacy Services, LLC
Maxor National Pharmacy Services, LLC	First Lien Secured Debt	6.50% (3M L+550, 1.00% Floor)	11/22/23	23,649	23,341	23,306	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/22/22	1,558	(17)	(18)	(8)(9) (21)(23)
					23,324	23,288

See notes to financial statements.

17

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)	Fair Value (1)(30)
Medical Guardian
Medical Guardian, LLC	First Lien Secured Debt	9.50% (1M L+850, 1.00% Floor)	12/31/24	34,286		33,702	33,881	(9)
	First Lien Secured Debt - Revolver	9.50% (1M L+850, 1.00% Floor)	12/31/24	381		381	376	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/31/24	5,333		(97)	(63)	(8)(9) (21)(23)
						33,986	34,194
Orchard
Orchard Therapeutics plc	First Lien Secured Debt	7.00% (1M L+600, 1.00% Floor)	05/24/24	8,333		8,303	8,323	(9)(17)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	05/24/24	16,667		(61)	(20)	(8)(9) (17)(21) (23)
						8,242	8,303
Ovation Fertility
FPG Services, LLC	First Lien Secured Debt	6.50% (3M L+550, 1.00% Floor)	06/13/25	12,474		12,278	12,113	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/13/24	2,105		(31)	(61)	(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	06/13/25	5,263		(41)	(152)	(8)(9) (21)(23)
						12,206	11,900
Partner Therapeutics, Inc
Partner Therapeutics, Inc	First Lien Secured Debt	7.65% (1M L+665, 1.00% Floor)	01/01/23	10,000		9,915	10,025	(9)
	Preferred Equity - Preferred Equity	N/A	N/A	55,556 Shares		333	663	(9)(13)
	Warrants	N/A	N/A	33,333 Shares		135	218	(9)(13)
						10,383	10,906
PHS
PHS Buyer, Inc.	First Lien Secured Debt	6.25% (3M L+525, 1.00% Floor)	01/31/25	10,203		10,036	9,897	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/31/25	2,000		(32)	(60)	(8)(9) (21)(23)
						10,004	9,837
ProPharma
ProPharma Group Intermediate, LLC	First Lien Secured Debt	6.25% (1M L+575, 0.50% Floor)	07/12/23	€	6,308	7,149	7,398
	First Lien Secured Debt	6.25% (1M L+575, 0.50% Floor)	07/12/23	£	4,187	5,455	5,414
	First Lien Secured Debt	6.25% (1M L+575, 0.50% Floor)	07/12/23	11,272		11,202	11,272
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	07/12/23	1,032		(6)	—	(21)(23)
						23,800	24,084
Radius Health
Radius Health, Inc.	First Lien Secured Debt	7.75% (1M L+575, 2.00% Floor)	06/01/24	3,000		2,994	3,033	(9)(17)
	First Lien Secured Debt - Unfunded Revolver	0.00% Unfunded	06/01/24	2,000		(4)	—	(9)(17) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	06/01/24	13,500		—	—	(9)(17) (21)(23)
						2,990	3,033
RHA Health Services
Pace Health Companies, LLC	First Lien Secured Debt	5.50% (3M L+450, 1.00% Floor)	08/02/24	545		537	536	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/02/24	433		(8)	(7)	(8)(9) (21)(23)

See notes to financial statements.

18

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
	First Lien Secured Debt - Letter of Credit	4.50%	12/10/20	68		—		(1)		(8)(9) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	08/02/24	3,950		(31)		(66)		(8)(9) (21)(23)
						498		462
Rigel Pharmaceuticals
Rigel Pharmaceuticals, Inc.	First Lien Secured Debt	7.15% (1M L+565, 1.50% Floor)	09/01/24	6,000		6,002		5,998		(9)
						6,002		5,998
RiteDose Holdings I, Inc.
RiteDose Holdings I, Inc.	First Lien Secured Debt	7.50% (3M L+650, 1.00% Floor)	09/13/23	14,588		14,352		14,587		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/13/23	2,000		(32)		—		(9)(21) (23)
						14,320		14,587
Wright Medical Group, Inc.
Wright Medical Group, Inc.	First Lien Secured Debt	8.85% (1M L+785, 1.00% Floor)	12/23/21	18,333		18,243		18,563		(9)(17)
	First Lien Secured Debt - Revolver	5.00% (1M L+425, 0.75% Floor)	12/23/21	21,000		21,000		21,157		(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/23/21	37,333		(159)		—		(9)(17) (21)(23)
						39,084		39,720
		Total Healthcare & Pharmaceuticals				$	451,997	$	448,512
High Tech Industries
Acronis AG
Acronis AG	First Lien Secured Debt	7.85% (1M L+635, 1.50% Floor)	12/18/24	$	21,000	$	20,911	$	20,542	(9)(17)
American Megatrends
AMI US Holdings Inc.	First Lien Secured Debt	6.59% (6M L+550, 1.00% Floor)	04/01/25	21,762		21,434		21,305		(9)
	First Lien Secured Debt - Revolver	5.66% (1M L+550)	04/01/24	814		814		794		(9)(23)
	First Lien Secured Debt - Revolver	5.65% (1M L+550)	04/01/24	698		698		681		(9)(23)
	First Lien Secured Debt - Revolver	6.59% (6M L+550)	04/01/24	581		581		567		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/01/24	814		(41)		(20)		(8)(9) (21)(23)
						23,486		23,327
Calero Holdings, Inc.
Telesoft Holdings, LLC	First Lien Secured Debt	6.75% (3M L+575, 1.00% Floor)	12/16/25	22,614		22,171		22,135
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/16/25	2,273		(44)		(48)		(8)(21) (23)
						22,127		22,087
ChargePoint
ChargePoint, Inc.	First Lien Secured Debt	7.80% (1M L+655, 1.25% Floor)	06/01/23	10,500		10,443		10,497		(9)
ChyronHego Corporation
ChyronHego Corporation	First Lien Secured Debt	7.15% (P+390)	03/09/20	34,753		31,751		31,625		(27)
	First Lien Secured Debt	7.93% (P+468)	03/09/20	3,725		3,725		3,650		(27)
	First Lien Secured Debt	7.93% (P+468)	03/09/20	34,579		34,438		28,701		(27)
	First Lien Secured Debt	7.93% (P+468)	09/30/20	2,000		2,000		1,960
	First Lien Secured Debt - Revolver	7.15% (P+390)	03/09/20	5,050		5,050		4,848		(23)(27)

See notes to financial statements.

19

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)	Fair Value (1)(30)
	First Lien Secured Debt - Unfunded Revolver	0.375% Unfunded	03/09/20	700		(483)	(28)	(8)(21) (23)(27)
	First Lien Secured Debt - Unfunded Delayed Draw	0.0% Unfunded	09/30/20	2,600		—	(52)	(8)(21) (23)
						76,481	70,704
Digital Reasoning
Digital Reasoning Systems, Inc.	First Lien Secured Debt	8.25% (1M L+625, 2.00% Floor)	08/01/24	3,750		3,729	3,744	(9)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	08/01/24	1,250		(10)	(2)	(8)(9) (21)(23)
	Warrants	N/A	N/A	48,596 Shares		—	47	(9)(13) (28)
						3,719	3,789
FiscalNote
FiscalNote, Inc.	First Lien Secured Debt	9.00% (1M L+800, 1.00% Floor)	08/21/23	28,555		28,111	27,949	(9)
	Preferred Equity - Series F Preferred Stock	N/A	N/A	259,565 Shares		1,500	750	(9)(13)
						29,611	28,699
GoHealth
Norvax, LLC	First Lien Secured Debt	7.50% (3M L+650, 1.00% Floor)	09/15/25	31,500		30,847	31,289	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/13/24	3,182		(63)	(19)	(8)(9) (21)(23)
						30,784	31,270
International Cruise & Excursion Gallery, Inc.
International Cruise & Excursion Gallery, Inc.	First Lien Secured Debt	6.25% (6M L+525, 1.00% Floor)	06/06/25	14,662		14,464	13,286
LabVantage Solutions
LabVantage Solutions Inc.	First Lien Secured Debt	8.50% (1M L+750, 1.00% Floor)	12/29/20	7,938		7,925	7,938
LabVantage Solutions Limited	First Lien Secured Debt	8.50% (1M E+750, 1.00% Floor)	12/29/20	€	8,735	9,387	10,243	(17)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/29/20	€	3,435	1	—	(17)(21) (23)
						17,313	18,181
Magnitude Software
New Amsterdam Software BidCo LLC	First Lien Secured Debt	6.00% (3M L+500, 1.00% Floor)	05/01/26	6,830		6,721	6,591	(9)
	First Lien Secured Debt	6.00% (3M E+500, 1.00% Floor)	05/01/26	€	734	810	831	(9)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	05/01/26	2,250		(18)	(79)	(8)(9) (21)(23)
						7,513	7,343
MYCOM
Magnate Holding Corp.	First Lien Secured Debt	6.75% (6M L+625 PIK, 0.50% Floor)	12/16/24	17,423		17,251	12,252	(9)(17)
	First Lien Secured Debt - Revolver	6.75% (6M L+625 PIK, 0.50% Floor)	12/14/23	2,114		2,114	1,486	(9)(17) (23)
	First Lien Secured Debt - Revolver	6.83% (6M L+625 PIK, 0.50% Floor)	12/14/23	682		682	480	(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	1.75% Unfunded	12/14/23	416		(30)	(124)	(8)(9) (17)(21) (23)
	First Lien Secured Debt - Letter of Credit	6.25%	04/22/21	145		—	(43)	(8)(9) (17)(23)
						20,017	14,051

See notes to financial statements.

20

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Omnitracs, LLC
Omnitracs, LLC	First Lien Secured Debt - Unfunded Revolver	0.375% Unfunded	03/23/23	3,750		(167)		(336)		(8)(21) (23)
Schlesinger Group
Schlesinger Global, LLC	First Lien Secured Debt	7.00% (3M L+600, 1.00% Floor)	07/12/25	9,936		9,716		9,668		(9)
						9,716		9,668
Simeio
Simeio Group Holdings, Inc.	First Lien Secured Debt	6.25% (1M L+525, 1.00% Floor)	01/30/26	8,611		8,496		8,343		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/30/26	1,731		(23)		(55)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.75% Unfunded	01/30/26	4,615		(31)		(150)		(8)(9) (21)(23)
						8,442		8,138
Sirsi Corporation
Sirsi Corporation	First Lien Secured Debt	5.75% (1M L+475, 1.00% Floor)	03/15/24	6,620		6,552		6,488		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/15/24	429		(4)		(9)		(8)(9) (21)(23)
						6,548		6,479
Springbrook
Springbrook Holding Company, LLC	First Lien Secured Debt	6.75% (3M L+575, 1.00% Floor)	12/23/26	9,804		9,655		9,627
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/23/26	1,463		(23)		(26)		(8)(21) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	12/23/26	3,659		(32)		(66)		(8)(21) (23)
						9,600		9,535
Telestream Holdings Corporation
Telestream Holdings Corporation	First Lien Secured Debt	7.61% (3M L +645, 1.00% Floor)	03/24/22	37,885		37,739		37,033		(18)
		Total High Tech Industries				$	348,747	$	334,293
Hotel, Gaming, Leisure, Restaurants
Garden Fresh
GFRC Holdings LLC	First Lien Secured Debt	11.50% (1M L+1000 PIK, 1.50% Floor)	02/01/22	$	2,647	$	2,500	$	—	(13)(14)
		Total Hotel, Gaming, Leisure, Restaurants				$	2,500	$	—
Insurance
PGM Holdings Corporation
Turbo Buyer, Inc.	First Lien Secured Debt	6.70% (6M L+550, 1.00% Floor)	12/02/25	$	13,982	$	13,678	$	13,716	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/02/25	923		(20)		(18)		(8)(9)(21) (23)
						13,658		13,698
PIB Group
Ivy Finco Limited	First Lien Secured Debt	5.89% (6M GBPL+550)	07/21/25	£	1,050	1,277		1,322		(9)(17)
	First Lien Secured Debt	6.23% (6M GBPL+550)	06/09/25	£	8,836	10,991		11,120		(9)(17)
	First Lien Secured Debt	5.55% (6M GBPL+550)	07/21/25	£	2,657	3,352		3,344		(9)(17)
	First Lien Secured Debt	5.57% (2M GBPL+550)	07/21/25	£	940	1,104		1,183		(9)(17)
	First Lien Secured Debt	5.72% (6M GBPL+550)	07/21/25	£	618	770		778		(9)(17)
	First Lien Secured Debt	6.25% (6M GBPL+550)	07/21/25	£	3,399	4,271		4,277		(9)(17)
						21,765		22,024

See notes to financial statements.

21

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Relation Insurance
AQ Sunshine, Inc.	First Lien Secured Debt	6.50% (6M L+550, 1.00% Floor)	04/15/25	17,568		17,357		17,247		(9)
	First Lien Secured Debt - Revolver	6.50% (6M L+550, 1.00% Floor)	04/15/24	1,059		1,059		1,042		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/15/24	79		(17)		(1)		(8)(9) (21)(23)
	First Lien Secured Debt - Letter of Credit	5.50%	04/30/21	38		—		(1)		(8)(9) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	04/15/25	1,047		(71)		(19)		(8)(9) (21)(23)
						18,328		18,268
			Total Insurance			$	53,751	$	53,990
Manufacturing, Capital Equipment
AVAD, LLC
AVAD Canada Ltd.	First Lien Secured Debt - Revolver	5.00% (1M L+400, 1.00% Floor)	10/02/23	$	563	$	563	$	553	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	10/02/23	771		(12)		(13)		(8)(9) (21)(23)
AVAD, LLC	First Lien Secured Debt	8.75% (1M L+775, 1.00% Floor)	10/02/23	7,984		7,885		7,854		(9)
	First Lien Secured Debt - Revolver	5.00% (1M L+400, 1.00% Floor)	10/02/23	7,024		7,024		6,907		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	10/02/23	11,643		(188)		(194)		(8)(9) (21)(23)
						15,272		15,107
Kauffman
Kauffman Holdco, LLC	Common Equity - Common Stock	N/A	N/A	250,000 Shares		250		175		(9)(13)
Kauffman Intermediate, LLC	First Lien Secured Debt	7.50% (3M L+650, 1.00% Floor)	05/08/25	16,752		16,494		16,251		(9)
	First Lien Secured Debt - Revolver	7.50% (1M L+650, 1.00% Floor)	05/08/25	155		155		151		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	05/08/25	2,253		(39)		(68)		(8)(9) (21)(23)
	First Lien Secured Debt - Letter of Credit	6.50%	07/25/21	155		—		(5)		(8)(9) (23)
						16,860		16,504
MedPlast Holdings Inc.
MedPlast Holdings Inc.	Second Lien Secured Debt	7.90% (1M L+775)	07/02/26	8,000		7,942		7,590
		Total Manufacturing, Capital Equipment				$	40,074	$	39,201
Media – Diversified & Production
New Wave Entertainment
NW Entertainment, Inc.	First Lien Secured Debt	8.00% (1M L+700, 1.00% Floor)	08/16/24	$	23,400	$	23,036	$	22,175	(9)
	First Lien Secured Debt - Revolver	8.00% (1M L+700, 1.00% Floor)	08/16/24	3,000		2,954		2,832		(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	08/16/24	3,000		(46)		(157)		(8)(9) (21)(23)
						25,944		24,850
Nitro World Entertainment
NWE OPCO LP	First Lien Secured Debt	8.50% (1M L+650, 2.00% Floor)	12/19/22	4,938		4,919		4,726		(9)
Sonar Entertainment
Sonar Entertainment, Inc.	First Lien Secured Debt	8.85% (1M L+760, 1.25% Floor)	11/15/21	7,453		7,405		7,323		(9)
	First Lien Secured Debt - Revolver	8.85% (1M L+760, 1.25% Floor)	11/15/21	3,361		3,361		3,302		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/15/21	19,470		(149)		(341)		(8)(9) (21)(23)
						10,617		10,284
		Total Media – Diversified & Production				$	41,480	$	39,860

See notes to financial statements.

22

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Metals & Mining
Magnetation, LLC
Magnetation, LLC	First Lien Secured Debt	9.91% (6M L+800 Cash (PIK Toggle))	12/31/19	$	1,213	$	581	$	—	(13)(14) (26)
		Total Metals & Mining				$	581	$	—
Retail
IPS
SI Holdings, Inc.	First Lien Secured Debt	6.75% (3M L+575, 1.00% Floor)	07/25/25	$	31,482	$	30,964	$	30,802	(9)
	First Lien Secured Debt - Revolver	6.75% (3M L+575, 1.00% Floor)	07/25/24	853		853		838		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	07/25/24	2,560		(52)		(46)		(8)(9) (21)(23)
						31,765		31,594
Rapid Displays
Rapid Displays Acquisition Corporation	First Lien Secured Debt	6.00% (3M L+500, 1.00% Floor)	07/01/25	11,261		11,087		10,828		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	07/01/25	1,154		(18)		(48)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	07/01/25	1,154		(14)		(44)		(8)(9) (21)(23)
						11,055		10,736
			Total Retail			$	42,820	$	42,330
Telecommunications
IPC Corporation
IPC Corporation	First Lien Secured Debt	5.26% (3M L+500)	08/06/21	$	10,000	$	9,974	$	9,096	(9)
IPC Information Systems UK Holdings Limited	First Lien Secured Debt	7.50% (3M L+650, 1.00% Floor)	08/06/21	1,405		1,375		1,333		(9)(17)
						11,349		10,429
Securus Technologies Holdings, Inc.
Securus Technologies Holdings, Inc.	Second Lien Secured Debt	9.25% (6M L+825, 1.00% Floor)	11/01/25	12,878		12,796		10,946
		Total Telecommunications				$	24,145	$	21,375
Transportation – Cargo, Distribution
Dynamic Product Tankers (Prime), LLC
Dynamic Product Tankers, LLC (5)	Unsecured Debt	5.31% (6M L+500)	07/31/24	$	22,000	$	22,000	$	22,000	(17)
	Common Equity - Class A Units	N/A	N/A	N/A		49,806		27,077		(13)(17) (24)(28)
						71,806		49,077
Heniff and Superior
Heniff Holdco, LLC	First Lien Secured Debt	6.75% (1M L+575, 1.00% Floor)	12/03/26	30,919		30,359		29,683		(9)
	First Lien Secured Debt - Revolver	6.75% (3M L+575, 1.00% Floor)	12/03/24	1,308		1,308		1,271		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/03/24	2,262		(65)		(65)		(8)(9) (21)(23)
	First Lien Secured Debt - Letters of Credit	5.75%	02/05/21 - 02/06/21	355		—		(11)		(8)(9) (23)
						31,602		30,878
MSEA Tankers LLC
MSEA Tankers LLC (5)	Common Equity - Class A Units	N/A	N/A	N/A		59,621		57,662		(17)(25) (28)
		Total Transportation – Cargo, Distribution				$	163,029	$	137,617

See notes to financial statements.

23

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par/Shares (12)		Cost (29)		Fair Value (1)(30)
Wholesale
Banner Solutions
Banner Buyer, LLC	First Lien Secured Debt	6.75% (1M L+575, 1.00% Floor)	10/31/25	$	73	$	72	$	71	(9)
	First Lien Secured Debt	6.75% (12M L+575, 1.00% Floor)	10/31/25	12,414		12,229		12,156		(9)
	First Lien Secured Debt - Revolver	6.75% (1M L+575, 1.00% Floor)	10/31/25	387		387		379		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	10/31/25	1,548		(29)		(33)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.75% Unfunded	10/31/25	5,484		(41)		(114)		(8)(9) (21)(23)
Banner Parent Holdings, Inc	Common Equity - Common Stock	N/A	N/A	5,000 Shares		500		457		(9)(13) (28)
			Total Wholesale			$	13,118	$	12,916
Total Investments before Cash Equivalents						2,890,538		2,586,583
J.P. Morgan U.S. Government Money Market Fund				25,825		25,825		25,825		(22)
Total Investments after Cash Equivalents						$	2,916,363	$	2,612,408	(6)(7)

____________________

(1)Fair value is determined in good faith by or under the direction of the Board of Directors of the Company (See Note 2 to the financial statements).

(2)Preferred and ordinary shares in Solarplicity UK Holdings Limited are GBP denominated equity investments.

(3)Denotes investments in which the Company owns greater than 25% of the equity, where the governing documents of each entity preclude the Company from exercising a controlling influence over the management or policies of such entity. The Company does not have the right to elect or appoint more than 25% of the directors or another party has the right to elect or appoint more directors than the Company and has the right to appoint certain members of senior management. Therefore, the Company has determined that these entities are not controlled affiliates. As of September 30, 2020, we had a 100% equity ownership interest in Golden Bear 2016-R, LLC, a collateralized loan obligation and 31% equity ownership in Carbonfree Chemicals SA LLC.

See notes to financial statements.

24

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

(4)Denotes investments in which we are an “Affiliated Person,” as defined in the 1940 Act, due to holding the power to vote or owning 5% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of March 31, 2020 and September 30, 2020 along with transactions during the six months ended September 30, 2020 in these affiliated investments are as follows:

Name of Issuer	Fair Value at March 31, 2020		Gross Additions ●		Gross Reductions ■		Net Change in Unrealized Gains (Losses)		Fair Value at September 30, 2020		Net Realized Gains (Losses)		Interest/Dividend/Other Income
1244311 B.C. Ltd., Common Stock	$	—	$	1,000	$	—	$	99	$	1,099	$	—	$	—
1244311 B.C. Ltd., Term Loan	—		1,000		—		(59)		941		—		—
1244311 B.C. Ltd., Term Loan	—		3,000		—		(196)		2,804		—		—
KLO Acquisition LLC, Term Loan	—		30		(30)		—		—		—		—
9357-5991 Quebec Inc., Term Loan	—		2,118		(8,653)		6,535		—		(3,653)		—
AIC SPV Holdings II, LLC, Preferred Stock	442		—		—		(30)		412		—		53
AMP Solar Group, Inc., Class A Common Unit	8,736		—		—		(166)		8,570		—		—
Carbonfree Caustic SPE LLC, Term Loan	13,111		—		(13,111)		—		—		—		—
Carbonfree Chemicals Holdings LLC, Common Equity / Interest	15,105		14,541				(4,751)		24,895		—		—
Carbonfree Chemicals SA LLC, Class B Units	—		17,057		—		(17,057)		—		—		—
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC), Term Loan	4,389		—		(17,057)		12,668		—		—		11
Golden Bear 2016-R, LLC, Membership Interests	9,748		26		—		(509)		9,265		—		624
Pelican Energy, LLC, Membership Interests	2,411		—		(58)		(183)		2,170		—		—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series B Preferred Stock	3,284		—		—		260		3,544		—		—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series D Preferred Stock	2,101		—		—		270		2,371		—		—
Renew JV LLC, Membership Interests	914		—		(122)		113		905		—		—
	$	60,241	$	38,772	$	(39,031)	$	(3,006)	$	56,976	$	(3,653)	$	688

____________________

● Gross additions includes increases in the basis of investments resulting from new portfolio investments, payment-in-kind interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

■ Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the amortization of premiums, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.

See notes to financial statements.

25

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

(5)Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Fair value as of March 31, 2020 and September 30, 2020 along with transactions during the six months ended September 30, 2020 in these controlled investments are as follows:

Name of Issuer	Fair Value at March 31, 2020		Gross Additions ●		Gross Reductions ■		Net Change in Unrealized Losses		Fair Value at September 30, 2020		Net Realized Losses		Interest/Dividend/Other Income
Majority Owned Company
Dynamic Product Tankers, LLC, Class A Units	$	36,457	$	—	$	—	$	(9,380)	$	27,077	$	—	$	—
Dynamic Product Tankers, LLC, First Lien Term Loan	42,000		130		(42,000)		(130)		—		—		1,391
Dynamic Product Tankers, LLC, Unsecured Debt	—		22,000		—		—		22,000		—		154
Dynamic Product Tankers, LLC, Letters of Credit	—		—		—		—		—		—		—
Merx Aviation Finance, LLC, Membership Interests	28,447		105,300		—		(10,203)		123,544		—		—
Merx Aviation Finance, LLC, Revolver	305,300		—		(105,300)		—		200,000		—		10,027
Merx Aviation Finance, LLC, Letters of Credit	—		—		—		—		—		—		—
MSEA Tankers LLC, Class A Units	59,735		—		(2,329)		256		57,662		—		1,691
Controlled Company
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Second Lien Term Loan	14,711		—		—		(4,378)		10,333		—		—
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Common Stock	—		—		—		—		—		—		—
SHD Oil & Gas, LLC, Tranche A Note	22,495		—		(471)		(5,204)		16,820		—		—
SHD Oil & Gas, LLC, Tranche B Note	—		—		—		—		—		—		—
SHD Oil & Gas, LLC, Tranche C Note	24,720		728		—		22		25,470		—		1,487
	$	533,865	$	128,158	$	(150,100)	$	(29,017)	$	482,906	$	—	$	14,750

____________________

● Gross additions includes increases in the basis of investments resulting from new portfolio investments, payment-in-kind interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

■ Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the amortization of premiums, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.

    As of September 30, 2020, the Company had a 85%, 47%, 100%, 98% and 38% equity ownership interest in Dynamic Product Tankers, LLC; Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.); Merx Aviation Finance, LLC; MSEA Tankers, LLC; and SHD Oil & Gas, LLC (f/k/a Spotted Hawk Development LLC), respectively.

See notes to financial statements.

26

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

(6)Aggregate gross unrealized gain and loss for federal income tax purposes is $44,415 and $402,368, respectively. Net unrealized loss is $357,953 based on a tax cost of $2,970,362.

(7)Substantially all securities are pledged as collateral to our multi-currency revolving credit facility (the “Senior Secured Facility” as defined in Note 6 to the financial statements). As such, these securities are not available as collateral to our general creditors.

(8)The negative fair value is the result of the commitment being valued below par.

(9)These are co-investments made with the Company’s affiliates in accordance with the terms of the exemptive order the Company received from the Securities and Exchange Commission (the “SEC”) permitting us to do so. (See Note 3 to the financial statements for discussion of the exemptive order from the SEC.)

(10)Other than the investments noted by this footnote, the fair value of the Company’s investments are determined using unobservable inputs that are significant to the overall fair value measurement. See Note 2 to the financial statements for more information regarding ASC 820, Fair Value Measurements (“ASC 820”).

(11)The unused line fees of 0.25% are collected for the Unfunded Revolver, respectively from both Altasciences US Acquisition, Inc. and Altasciences/9360-1367 Quebec Inc. as each borrower has access to the respective lending facilities.

(12)Par amount is denominated in USD unless otherwise noted, Euro (“€”), British Pound (“£”), Canadian Dollar (“C$”) and Australian Dollar (“A$”).

(13)Non-income producing security.

(14)Non-accrual status (See Note 2 to the financial statements).

(15)The underlying investments of AIC SPV Holdings II, LLC is a securitization in which the Company owns preferred shares representing 14.25% economic interest.

(16)AIC Spotted Hawk Holdings, LLC, AIC SHD Holdings, LLC and AIC Pelican Holdings, LLC are wholly-owned special purpose vehicles which only hold equity investments of the underlying portfolio companies and have no other significant assets or liabilities. AIC Spotted Hawk Holdings, LLC and AIC SHD Holdings, LLC hold equity investments in SHD Oil & Gas, LLC. AIC Pelican Holdings, LLC holds an equity investment in Pelican Energy, LLC.

(17)Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis. As of September 30, 2020, non-qualifying assets represented approximately 17.40% of the total assets of the Company.

(18)In addition to the interest earned based on the stated rate of this loan, the Company may be entitled to receive additional interest as a result of its arrangement with other lenders in a syndication.

(19)The Company holds some warrants for this investment as part of the restructuring of the underlying portfolio company. The warrants have no cost and no fair value as of September 30, 2020.

(20)Generally, the interest rate on floating interest rate investments is at benchmark rate plus spread. The borrower has an option to choose the benchmark rate, such as the London Interbank Offered Rate (“LIBOR”), the Euro Interbank Offered Rate (“EURIBOR”), the federal funds rate or the prime rate (“Prime”). The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates (1M L, 2M L, 3M L or 6M L, respectively), EURIBOR loans are typically indexed to 90-day EURIBOR rates (3M E), Bank Bill Swap rates are typically index to 90-day Bank Bill Swap rates (3M BBSW), GBP LIBOR loans are typically indexed to 90-day GBP LIBOR rates (3M GBP L) and EUR LIBOR loans are typically indexed to 90-day EUR LIBOR rates (3M E L) at the borrower’s option. LIBOR and EURIBOR loans may be subject to interest floors. As of September 30, 2020, rates for 1M L, 2M L, 3M L, 6M L, 1M E, 3M E, 1M BBSW, 3M BBSW, 3M GBP L, 3M E L and Prime are 0.15%, 0.19%, 0.23%,0.26%, (0.53%), (0.50%), (0.04%), (0.04%), 0.06%, (0.52%) and 3.25%, respectively.

(21)The rates associated with these undrawn committed revolvers and delayed draw term loans represent rates for commitment and unused fees.

(22)This security is included in the Cash and Cash Equivalents on the Statements of Assets and Liabilities.

See notes to financial statements.

27

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

(23)As of September 30, 2020, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 8 to the financial statements for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies.

Name of Issuer	Total Commitment		Drawn Commitment		Letters of Credit		Undrawn Commitment
A&V Holdings Midco, LLC	$	1,505	$	—	$	—	$	1,505
Altasciences US Acquistion, Inc.*	1,425		392		—		1,033
Amerivet Partners Management, Inc.	7,758		524		—		7,234
AMI US Holdings Inc.	2,907		2,093		—		814
Analogic Corporation	1,826		—		—		1,826
AQ Sunshine, Inc.	2,223		1,059		38		1,126
Arthur Bidco Limited*	1,901		1,901		—		—
AVAD Canada Ltd.	1,334		563		—		771
AVAD, LLC	18,667		7,024		—		11,643
Banner Buyer, LLC	7,419		387		—		7,032
BIG Buyer, LLC	1,806		602		—		1,204
BK Medical Holding Company, Inc.	783		—		—		783
Cerus Corporation	9,500		55		—		9,445
ChyronHego Corporation	8,350		5,050		—		3,300
Claritas, LLC	1,031		387		—		644
Compu-Link Corporation	2,273		—		—		2,273
Continuum Global Solutions, LLC	20,000		3,509		—		16,491
Digital Reasoning Systems, Inc.	1,250		—		—		1,250
Dispatch Acquisition Holdings, LLC	8,361		1,867		207		6,287
Eagle Foods Family Group, LLC	3,750		1,333		—		2,417
EHL Merger Sub, LLC	4,155		—		—		4,155
Eldrickco Limited*	5,606		446		—		5,160
Erickson Inc	37,500		30,169		2,246		5,085
Exeter Property Group, LLC	192		—		—		192
First Heritage Credit, LLC	13,500		892		—		12,608
Flock SPV I, LLC	6,000		533		—		5,467
Florida Food Products, LLC	1,712		1,712		—		—
FPG Services, LLC	7,368		—		—		7,368
Gabriel Partners, LLC	1,995		—		—		1,995
Genesis Healthcare, Inc.	67,718		—		—		67,718
GB001, Inc.	24,000		—		—		24,000
Gutter Buyer, Inc.	3,463		—		39		3,424
Heniff Holdco, LLC	3,925		1,308		355		2,262
HSI Halo Acquisition, Inc.	813		374		—		439
IMA Group Management Company, LLC	289		289		—		—
Jacent Strategic Merchandising	3,500		2,567		—		933
JF Acquisition, LLC	1,569		628		—		941
Kauffman Intermediate, LLC	2,563		155		155		2,253
KDC US Holdings*	6,023		—		129		5,894
Kindeva Drug Delivery L.P.	167		—		—		167
Kure Pain Holdings, Inc.	2,654		—		—		2,654
LabVantage Solutions Limited*	4,028		—		—		4,028
Lash OpCo, LLC	697		—		—		697
Lifelong Learner Holdings, LLC	5,373		1,039		—		4,334
Lion Cashmere Midco Limited*	3,546		709		—		2,837
Liqui-Box Holdings, Inc.*	3,566		1,661		80		1,825
Magnate Holding Corp.	3,357		2,796		145		416
Mannkind Corporation	8,667		—		—		8,667
Margaux Acquisition Inc.	2,482		1,601		—		881

See notes to financial statements.

28

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Name of Issuer	Total Commitment		Drawn Commitment		Letters of Credit		Undrawn Commitment
Margaux UK Finance Limited*	700		—		—		700
Marlin DTC-LS Midco 2, LLC	685		—		—		685
Maxor National Pharmacy Services, LLC	1,558		—		—		1,558
Medical Guardian, LLC	5,714		381		—		5,333
Merx Aviation Finance, LLC	200,177		200,000		177		—
Nemo (BC) Bidco Pty Ltd*	166		—		—		166
New Amsterdam Software BidCo LLC	2,250		—		—		2,250
Newscycle Solutions, Inc.	500		500		—		—
Norvax, LLC	3,182		—		—		3,182
NW Entertainment, Inc.	6,000		3,000		—		3,000
Olaplex, Inc.	2,300		1,150		—		1,150
Omnitracs, LLC	3,750		—		—		3,750
Orchard Therapeutics plc	16,667		—		—		16,667
Ortega National Parks, LLC	8,251		2,049		—		6,202
Pace Health Companies, LLC	4,451		—		68		4,383
Paper Source, Inc.	3,081		3,081		—		—
PHS Buyer, Inc.	2,000		—		—		2,000
PrimeFlight Aviation Services, Inc.	2,842		—		—		2,842
Project Comfort Buyer, Inc.	5,770		—		—		5,770
ProPharma Group Intermediate, LLC	1,032		—		—		1,032
Protein For Pets Opco, LLC	2,219		—		—		2,219
Purchasing Power Funding I, LLC	9,113		8,316		—		797
RA Outdoors, LLC	1,200		—		—		1,200
Radius Health, Inc.	15,500		—		—		15,500
Rapid Displays Acquisition Corporation	2,308		—		—		2,308
RiteDose Holdings I, Inc.	2,000		—		—		2,000
Royton Bidco Limited*	2,928		—		—		2,928
SI Holdings, Inc.	3,413		853		—		2,560
Simeio Group Holdings, Inc.	6,346		—		—		6,346
Simplifi Holdings, Inc.	2,400		1,200		—		1,200
Sirsi Corporation	429		—		—		429
Soliant Holdings, LLC	1,936		—		—		1,936
Sonar Entertainment, Inc.	22,831		3,361		—		19,470
Springbrook Holding Company, LLC	5,122		—		—		5,122
Telesoft Holdings, LLC	2,273		—		—		2,273
Ten-X, LLC	4,680		4,680		—		—
TGG TS Acquisition Company	1,750		—		—		1,750
The Emmes Company, LLC	2,449		—		—		2,449
THLP CO. LLC	7,303		—		—		7,303
TNT Crust LLC	3,252		1,236		—		2,016
TricorBraun Holdings, Inc.	5,625		—		—		5,625
Truck-Lite Co., LLC	6,760		654		94		6,012
Turbo Buyer, Inc.	923		—		—		923
U.S. Auto Finance, Inc.	13,333		7,817		—		5,516
USLS Acquisition, Inc.	2,279		536		101		1,642
Westfall Technik, Inc.	2,019		2,019		—		—
Wildcat BuyerCo, Inc.	2,754		—		8		2,746
Wright Medical Group, Inc.	58,333		21,000		—		37,333
Total Commitments	$	793,051	$	335,458	$	3,842	$	453,751

____________________

* These investments are in a foreign currency and the total commitment has been converted to USD using the September 30, 2020 exchange rate.

See notes to financial statements.

29

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

(24)As of September 30, 2020, Dynamic Product Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-3 units which are identical except that Class A-1 unit is voting and Class A-3 unit is non-voting. The units entitle the Company to appoint three out of five managers to the board of managers.

(25)As of September 30, 2020, MSEA Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-2 units which are identical except that Class A-1 unit is voting and Class A-2 unit is non-voting. The units entitle the Company to appoint two out of three managers to the board of managers.

(26)This investment has matured but is still held for any potential future cash proceeds. No value has been attributed to these future recoveries.

(27)The maturity date for these investments are expected to be extended past September 30, 2020. The final terms of the extension are still under negotiation between the Company and the respective portfolio company.

(28)Securities that are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act. As of September 30, 2020 the aggregate fair value of these securities is $255,354 or 25% of the Company's net assets. The acquisition dates of the restricted securities are as follows:

Name of Issuer	Investment Type	Acquisition Date
1244311 B.C. Ltd.	Common Equity - Common Stock	9/30/2020
AIC SPV Holdings II, LLC	Preferred Equity - Preferred Stock	6/1/2017
Amerivet Partners Parent LP	Common Equity - Class D Partnership Units	3/6/2020
AMP Solar Group, Inc.	Common Equity - Class A Common Unit	11/25/2014
Banner Parent Holdings, Inc	Common Equity - Common Stock	10/31/2019
Butterfly Fighter Co-Invest, L.P.	Common Equity - Membership Interests	11/22/2019
Carbonfree Chemicals Holdings LLC	Common Equity - Common Equity / Interest	11/19/2019
Carbonfree Chemicals SA LLC	Common Equity - Class B Units	11/19/2019
Digital Reasoning Systems, Inc.	Warrants	12/2/2019
Dynamic Product Tankers, LLC	Common Equity - Class A Units	4/3/2015
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)	Common Equity - Common Stock	3/29/2016
HSI Halo Acquisition, Inc.	Common Equity - Common Stock	10/4/2019
JSM Equity Investors, L.P.	Preferred Equity - Class P Partnership Units	6/30/2020
Merx Aviation Finance, LLC	Common Equity - Membership Interests	5/22/2013
MSEA Tankers LLC	Common Equity - Class A Units	12/12/2014
Paper Source, Inc.	Preferred Equity - Preferred Equity	9/11/2020
Pelican Energy, LLC	Common Equity - Membership Interests	2/16/2016
Renew Financial LLC (f/k/a Renewable Funding, LLC)	Preferred Equity - Series B Preferred Stock	4/9/2014
Renew Financial LLC (f/k/a Renewable Funding, LLC)	Preferred Equity - Series D Preferred Stock	10/1/2015
Renew JV LLC	Common Equity - Membership Interests	3/20/2017
SHD Oil & Gas, LLC	Common Equity - Series A Units	11/18/2016
Soliant Health, Inc.	Common Equity - Membership Interests	12/31/2019
TL Lighting Holdings, LLC	Common Equity - Equity	12/13/2019
Wildcat Parent LP	Common Equity - Common Stock	2/27/2020

See notes to financial statements.

30

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

(29)The following shows the composition of the Company’s portfolio at cost by control designation, investment type and industry as of September 30, 2020:

Industry	First Lien - Secured Debt		Second Lien - Secured Debt		Unsecured Debt		Structured Products and Other		Preferred Equity		Common Equity/Interests		Warrants		Total
Non-Controlled/Non-Affiliated Investments
Advertising, Printing & Publishing	$	39,209	$	5,507	$	—	$	—	$	—	$	—	$	—	$	44,716
Aerospace & Defense	30,022		—		—		—		—		—		—		30,022
Automotive	33,711		23,519		—		—		—		2,064		—		59,294
Aviation and Consumer Transport	14,442		—		—		—		—		—		—		14,442
Beverage, Food & Tobacco	101,554		—		—		—		—		2,204		—		103,758
Business Services	224,597		141,309		—		—		89		1,432		—		367,427
Chemicals, Plastics & Rubber	17,632		12,147		—		—		—		—		—		29,779
Construction & Building	27,602		—		—		—		—		500		—		28,102
Consumer Goods – Durable	19,233		21,714		—		—		—		107		—		41,054
Consumer Goods – Non-durable	93,882		12,850		—		—		462		—		—		107,194
Consumer Services	91,295		—		—		—		—		—		—		91,295
Containers, Packaging & Glass	(118)		—		—		—		—		—		—		(118)
Diversified Investment Vehicles, Banking, Finance, Real Estate	52,177		—		—		—		—		—		—		52,177
Education	36,077		—		—		—		—		—		—		36,077
Energy – Electricity	7,637		—		—		—		5,705		4		—		13,346
Environmental Industries	31,389		—		—		—		—		—		—		31,389
Food & Grocery	9,561		—		—		—		—		—		—		9,561
Healthcare & Pharmaceuticals	388,609		61,856		—		—		333		1,064		135		451,997
High Tech Industries	347,247		—		—		—		1,500		—		—		348,747
Hotel, Gaming, Leisure, Restaurants	2,500		—		—		—		—		—		—		2,500
Insurance	53,751		—		—		—		—		—		—		53,751
Manufacturing, Capital Equipment	31,882		7,942		—		—		—		250		—		40,074
Media – Diversified & Production	41,480		—		—		—		—		—		—		41,480
Metals & Mining	581		—		—		—		—		—		—		581
Retail	42,820		—		—		—		—		—		—		42,820
Telecommunications	11,349		12,796		—		—		—		—		—		24,145
Transportation – Cargo, Distribution	31,602		—		—		—		—		—		—		31,602
Wholesale	12,618		—		—		—		—		500		—		13,118
Total Non-Controlled/ Non-Affiliated Investments	$	1,794,341	$	299,640	$	—	$	—	$	8,089	$	8,125	$	135	$	2,110,330
Non-Controlled/Affiliated Investments
Chemicals, Plastics & Rubber	$	—	$	—	$	—	$	—	$	—	$	77,887	$	—	$	77,887
Consumer Goods – Durable	8,808		—		—		—		—		1,000		—		9,808
Diversified Investment Vehicles, Banking, Finance, Real Estate	—		—		—		16,755		—		—		—		16,755
Energy – Electricity	—		—		—		—		14,445		10,771		—		25,216
Energy – Oil & Gas	—		—		—		—		—		16,764		—		16,764
Total Non-Controlled/Affiliated Investments	$	8,808	$	—	$	—	$	16,755	$	14,445	$	106,422	$	—	$	146,430
Controlled Investments
Aviation and Consumer Transport	$	200,000	$	—	$	—	$	—	$	—	$	120,300	$	—	$	320,300
Energy – Oil & Gas	113,636		36,926		—		—		—		31,489		—		182,051
Transportation – Cargo, Distribution	—		—		22,000		—		—		109,427		—		131,427
Total Controlled Investments	$	313,636	$	36,926	$	22,000	$	—	$	—	$	261,216	$	—	$	633,778
Total	$	2,116,785	$	336,566	$	22,000	$	16,755	$	22,534	$	375,763	$	135	$	2,890,538

See notes to financial statements.

31

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

(30)The following shows the composition of the Company’s portfolio at fair value by control designation, investment type and industry as of September 30, 2020:

Industry	First Lien - Secured Debt			Second Lien - Secured Debt			Unsecured Debt			Structured Products and Other			Preferred Equity			Common Equity/Interests			Warrants			Total			% of Net Assets
Non-Controlled / Non-Affiliated Investments
Advertising, Printing & Publishing	$	38,567		$	3,654		$	—		$	—		$	—		$	—		$	—		$	42,221		4.2	%
Aerospace & Defense	29,421			—			—			—			—			—			—			29,421			2.9	%
Automotive	33,607			21,566			—			—			—			301			—			55,474			5.5	%
Aviation and Consumer Transport	14,115			—			—			—			—			—			—			14,115			1.4	%
Beverage, Food & Tobacco	101,399			—			—			—			—			3,129			—			104,528			10.4	%
Business Services	219,163			134,657			—			—			89			983			—			354,892			35.2	%
Chemicals, Plastics & Rubber	17,099			13,244			—			—			—			—			—			30,343			3.0	%
Construction & Building	27,438			—			—			—			—			998			—			28,436			2.8	%
Consumer Goods – Durable	18,662			21,559			—			—			—			589			—			40,810			4.0	%
Consumer Goods – Non-durable	92,217			12,293			—			—			194			—			—			104,704			10.4	%
Consumer Services	86,461			—			—			—			—			—			—			86,461			8.6	%
Containers, Packaging & Glass	(29)			—			—			—			—			—			—			(29)			—	%
Diversified Investment Vehicles, Banking, Finance, Real Estate	51,488			—			—			—			—			—			—			51,488			5.1	%
Education	38,028			—			—			—			—			—			—			38,028			3.8	%
Energy – Electricity	2,210			—			—			—			—			—			—			2,210			0.2	%
Environmental Industries	30,790			—			—			—			—			—			—			30,790			3.1	%
Food & Grocery	9,454			—			—			—			—			—			—			9,454			0.9	%
Healthcare & Pharmaceuticals	387,762			58,707			—			—			663			1,162			218			448,512			44.5	%
High Tech Industries	333,496			—			—			—			750			—			47			334,293			33.2	%
Hotel, Gaming, Leisure, Restaurants	—			—			—			—			—			—			—			—			—	%
Insurance	53,990			—			—			—			—			—			—			53,990			5.4	%
Manufacturing, Capital Equipment	31,436			7,590			—			—			—			175			—			39,201			3.9	%
Media – Diversified & Production	39,860			—			—			—			—			—			—			39,860			4.0	%
Metals & Mining	—			—			—			—			—			—			—			—			—	%
Retail	42,330			—			—			—			—			—			—			42,330			4.2	%
Telecommunications	10,429			10,946			—			—			—			—			—			21,375			2.1	%
Transportation – Cargo, Distribution	30,878			—			—			—			—			—			—			30,878			3.1	%
Wholesale	12,459			—			—			—			—			457			—			12,916			1.3	%
Total Non-Controlled / Non-Affiliated Investments	$	1,752,730		$	284,216		$	—		$	—		$	1,696		$	7,794		$	265		$	2,046,701		203.2	%
% of Net Assets	173.9		%	28.3		%	—		%	—		%	0.2		%	0.8		%	0%			203.2		%
Non-Controlled / Affiliated Investments
Chemicals, Plastics & Rubber	$	—		$	—		$	—		$	—		$	—		$	24,895		$	—		$	24,895		2.5	%
Consumer Goods – Durable	3,745			—			—			—			—			1,099			—			4,844			0.5	%
Diversified Investment Vehicles, Banking, Finance, Real Estate	—			—			—			9,265			—			—			—			9,265			0.9	%
Energy – Electricity	—			—			—			—			6,327			9,475			—			15,802			1.6	%
Energy – Oil & Gas	—			—			—			—			—			2,170			—			2,170			0.1	%
Total Non-Controlled / Affiliated Investments	$	3,745		$	—		$	—		$	9,265		$	6,327		$	37,639		$	—		$	56,976		5.6	%
% of Net Assets	0.4		%	—		%	—		%	0.9		%	0.6		%	3.7		%	—		%	5.6		%
Controlled Investments
Aviation and Consumer Transport	$	200,000		$	—		$	—		$	—		$	—		$	123,544		$	—		$	323,544		32.1	%
Energy – Oil & Gas	42,290			10,333			—			—			—			—			—			52,623			5.2	%
Transportation – Cargo, Distribution	—			—			22,000			—			—			84,739			—			106,739			10.6	%
Total Controlled Investments	$	242,290		$	10,333		$	22,000		$	—		$	—		$	208,283		$	—		$	482,906		47.9	%
% of Net Assets	24.0		%	1.0		%	2.2		%	—		%	—		%	20.7		%	—		%	47.9		%
Total	$	1,998,765		$	294,549		$	22,000		$	9,265		$	8,023		$	253,716		$	265		$	2,586,583		256.7	%
% of Net Assets	198.3		%	29.3		%	2.2		%	0.9		%	0.8		%	25.2		%	0%			256.7		%

See notes to financial statements.

32

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2020

(In thousands, except share data)

Industry Classification	Percentage of Total Investments (at Fair Value) as of September 30, 2020
Healthcare & Pharmaceuticals	17.3%
Business Services	13.7%
Aviation and Consumer Transport	13.1%
High Tech Industries	13.0%
Transportation – Cargo, Distribution	5.3%
Beverage, Food & Tobacco	4.0%
Consumer Goods – Non-durable	4.0%
Consumer Services	3.3%
Diversified Investment Vehicles, Banking, Finance, Real Estate	2.3%
Automotive	2.1%
Chemicals, Plastics & Rubber	2.1%
Energy – Oil & Gas	2.1%
Insurance	2.1%
Consumer Goods – Durable	1.8%
Retail	1.7%
Advertising, Printing & Publishing	1.6%
Media – Diversified & Production	1.5%
Manufacturing, Capital Equipment	1.5%
Education	1.5%
Environmental Industries	1.2%
Aerospace & Defense	1.2%
Construction & Building	1.1%
Telecommunications	0.9%
Energy – Electricity	0.7%
Wholesale	0.5%
Food & Grocery	0.4%
Metals & Mining	0.0%
Hotel, Gaming, Leisure, Restaurants	0.0%
Containers, Packaging & Glass	0.0%
Total Investments	100.0%

See notes to financial statements.

33

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
Advertising, Printing & Publishing
Learfield Communications
A-L Parent LLC	Second Lien Secured Debt	8.25% (1M L+725, 1.00% Floor)	12/02/24	$	5,536	$	5,503	$	4,882
Simplifi Holdings, Inc.
Simplifi Holdings, Inc.	First Lien Secured Debt	7.20% (3M L+575, 1.00% Floor)	08/02/25	38,829		38,188		37,164		(9)
	First Lien Secured Debt - Revolver	7.20% (1M L+575, 1.00% Floor)	08/02/25	1,200		1,200		1,148		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/02/25	1,200		(49)		(51)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	08/02/25	6,091		(57)		(187)		(8)(9) (21)(23)
						39,282		38,074
Total Advertising, Printing & Publishing						$	44,785	$	42,956
Aerospace & Defense
Erickson Inc
Erickson Inc	First Lien Secured Debt - Revolver	9.41% (3M L+750, 1.50% Floor)	04/28/22	$	31,812	$	31,812	$	31,096	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/28/22	7,425		(233)		(167)		(8)(9) (21)(23)
	First Lien Secured Debt - Letters of Credit	7.50%	04/30/20 - 07/15/22	1,263		—		(27)		(8)(9) (23)
						31,579		30,902
PAE Holding Corporation
PAE Holding Corporation	Second Lien Secured Debt	10.50% (1M L+950, 1.00% Floor)	10/20/23	13,637		13,462		12,353
Total Aerospace & Defense						$	45,041	$	43,255
Automotive
Accelerate Parent Corp. (American Tire)
Accelerate Parent Corp.	Common Equity/Interests - Common Stock	N/A	N/A	1,664,046 Shares		1,714		250		(13)(19)
Arlington
Arlington Industries Group Limited	First Lien Secured Debt	5.75% (1M E+525, 0.50% Floor)	03/29/24	€	3,189	3,572		3,309		(9)(17)
	First Lien Secured Debt	5.87% (1M GBPL+525, 0.50% Floor)	03/29/24	£	7,818	9,972		9,204		(9)(17)
	First Lien Secured Debt - Unfunded Revolver	1.25% Unfunded	03/29/24	£	2,700	(57)		(191)		(8)(9) (17)(21) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	03/29/24	£	1,300	(28)		(77)		(8)(9) (17)(21) (23)
						13,459		12,245
Crowne Automotive
Vari-Form Group, LLC	First Lien Secured Debt	L+11.00% (7.00% Cash plus 4.00% PIK)	02/02/23	5,859		937		762		(9)(13) (14)
Vari-Form Inc.	First Lien Secured Debt	L+11.00% (7.00% Cash plus 4.00% PIK)	02/02/23	2,110		391		274		(9)(13) (14)
						1,328		1,036
K&N Parent, Inc.
K&N Parent, Inc.	Second Lien Secured Debt	9.82% (3M L+875, 1.00% Floor)	10/21/24	23,765		23,489		22,220
Truck-Lite Co., LLC
Truck-Lite Co., LLC	First Lien Secured Debt	7.32% (6M L+625, 1.00% Floor)	12/14/26	25,148		24,573		24,446		(9)
	First Lien Secured Debt - Revolver	7.25% (1M L+625, 1.00% Floor)	12/13/24	1,308		1,308		1,277		(9)(23)
	First Lien Secured Debt - Revolver	7.32% (6M L+625, 1.00% Floor)	12/13/24	654		654		638		(9)(23)

See notes to financial statements.

34

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/13/24	1,005		(67)		(24)		(8)(9) (21)(23)
	First Lien Secured Debt - Letters of Credit	7.25%	11/30/20 - 12/21/20	85		—		(2)		(8)(9) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	12/14/26	3,707		(84)		(103)		(8)(9) (21)(23)
TL Lighting Holdings, LLC	Common Equity/Interests - Class A Common Units	N/A	N/A	350 Shares		350		241		(9)(13)
						26,734		26,473
Total Automotive						$	66,724	$	62,224
Aviation and Consumer Transport
Merx Aviation Finance, LLC
Merx Aviation Finance, LLC (5)	First Lien Secured Debt - Revolver	12.00%	10/31/23	$	305,300	$	305,300	$	305,300	(23)
	First Lien Secured Debt - Letter of Credit	2.25%	07/13/20	177		—		—		(23)
	Common Equity/Interests - Membership Interests	N/A	N/A	N/A		15,000		28,447
						320,300		333,747
PrimeFlight
PrimeFlight Aviation Services, Inc.	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	05/09/24	13,367		13,184		12,790		(9)
	First Lien Secured Debt	7.02% (1M L+550, 1.00% Floor)	05/09/24	1,375		1,362		1,316		(9)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	05/09/24	2,842		(85)		(122)		(8)(9) (21)(23)
						14,461		13,984
Total Aviation and Consumer Transport						$	334,761	$	347,731
Beverage, Food & Tobacco
Bolthouse Farms
Wm. Bolthouse Farms, Inc.	Common Equity/Interests - Common Stock	N/A	N/A	1,000,000 Shares		$	1,000	$	940	(13)
Eagle Foods
Eagle Foods Family Group, LLC	First Lien Secured Debt	8.68% (6M L+675, 1.00% Floor)	06/14/24	$	24,562	24,369		23,703		(9)
	First Lien Secured Debt - Revolver	7.75% (1M L+675, 1.00% Floor)	06/14/23	167		167		161		(9)(23)
	First Lien Secured Debt - Revolver	7.75% (3M L+675, 1.00% Floor)	06/14/23	333		333		322		(9)(23)
	First Lien Secured Debt - Revolver	7.95% (3M L+675, 1.00% Floor)	06/14/23	167		167		161		(9)(23)
	First Lien Secured Debt - Revolver	8.36% (6M L+675, 1.00% Floor)	06/14/23	667		667		643		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/14/23	2,417		(27)		(85)		(8)(9) (21)(23)
						25,676		24,905
Florida Food Products, Inc.
Florida Food Products, Inc.	First Lien Secured Debt	8.20% (3M L+675, 1.00% Floor)	09/08/25	22,938		22,492		22,594		(9)
Florida Food Products, LLC	First Lien Secured Debt - Revolver	7.75% (1M L+675, 1.00% Floor)	09/06/23	240		240		236		(9)(23)
	First Lien Secured Debt - Revolver	8.20% (3M L+675, 1.00% Floor)	09/06/23	1,473		1,443		1,450		(9)(23)
						24,175		24,280
Orgain, Inc.
Butterfly Fighter Co-Invest, L.P.	Common Equity/Interests - Membership Interests	N/A	N/A	1,000,000 Shares		1,000		1,000		(13)

See notes to financial statements.

35

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
TNT Crust LLC
TNT Crust LLC	First Lien Secured Debt	7.75% (1M L+675, 1.00% Floor)	11/06/23	20,618		20,318		20,102		(9)
	First Lien Secured Debt	8.01% (1M L+675, 1.00% Floor)	11/06/23	4,878		4,785		4,756		(9)
	First Lien Secured Debt - Revolver	7.75% (1M L+675, 1.00% Floor)	11/06/23	748		748		729		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/06/23	2,504		(50)		(63)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	11/06/23	976		(43)		(24)		(8)(9) (21)(23)
	Common Equity/Interests - Series A Units	N/A	N/A	244 Shares		30		275		(9)(13)
						25,788		25,775
Turkey Hill
IC Holdings LLC	Common Equity/Interests - Series A Units	N/A	N/A	169 Shares		169		153		(9)(13)
THLP CO. LLC	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	05/30/25	19,562		19,225		19,268		(9)
	First Lien Secured Debt - Revolver	7.75% (P+450)	05/31/24	2,247		2,247		2,213		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	05/31/24	2,247		(75)		(34)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	05/30/25	5,618		(33)		(84)		(8)(9) (21)(23)
						21,533		21,516
Total Beverage, Food & Tobacco						$	99,172	$	98,416
Business Services
Access Information
Access CIG, LLC	Second Lien Secured Debt	9.53% (3M L+775)	02/27/26	$	15,900	$	15,789	$	15,299
Ambrosia Buyer Corp.
Ambrosia Buyer Corp.	Second Lien Secured Debt	9.08% (3M L+800, 1.00% Floor)	08/28/25	21,429		21,066		17,751
Claritas
Claritas, LLC	First Lien Secured Debt	7.45% (3M L+600, 1.00% Floor)	12/21/23	3,845		3,815		3,787		(9)
	First Lien Secured Debt - Revolver	7.00% (1M L+600, 1.00% Floor)	12/21/23	619		619		609		(9)(23)
	First Lien Secured Debt - Revolver	7.26% (1M L+600, 1.00% Floor)	12/21/23	129		129		127		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/21/23	284		(8)		(4)		(8)(9) (21)(23)
						4,555		4,519
Continuum
Continuum Global Solutions, LLC	First Lien Secured Debt - Revolver	7.08% (1M L+550, 1.00% Floor)	02/15/22	8,791		8,791		8,527		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/15/22	11,209		(304)		(336)		(8)(9) (21)(23)
	Preferred Equity - Preferred Stock	N/A	N/A	775 Shares		78		78		(9)(13)
						8,565		8,269
CT Technologies Intermediate Holdings, Inc
CT Technologies Intermediate Holdings, Inc	Second Lien Secured Debt	10.45% (3M L+900, 1.00% Floor)	12/01/22	31,253		30,803		27,815		(9)
Education Personnel
Education Personnel	First Lien Secured Debt	5.42% (3M GBPL+475, 0.50% Floor)	08/31/24	£	4,076	5,190		4,790		(9)(17)
	First Lien Secured Debt - Revolver	5.42% (3M GBPL+475, 0.50% Floor)	08/31/24	£	1,471	1,873		1,727		(9)(17) (23)
						7,063		6,517

See notes to financial statements.

36

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)	Fair Value (1)(29)
Electro Rent Corporation
Electro Rent Corporation	Second Lien Secured Debt	10.64% (3M L+900, 1.00% Floor)	01/31/25	34,235		33,546	33,208	(9)
Elo Touch
TGG TS Acquisition Company	First Lien Secured Debt - Revolver	7.40% (3M L+650)	12/14/23	500		500	480	(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/14/23	1,250		—	(50)	(8)(21) (23)
						500	430
Ensemble Health
EHL Merger Sub, LLC	First Lien Secured Debt - Revolver	6.00% (P+275)	08/01/24	1,662		1,662	1,512	(23)
	First Lien Secured Debt - Unfunded Revolver	0.25% Unfunded	08/01/24	2,493		(330)	(224)	(8)(21) (23)
						1,332	1,288
Jacent
Jacent Strategic Merchandising	First Lien Secured Debt	7.36% (3M L+575, 1.00% Floor)	04/23/24	22,579		22,304	21,315	(9)
	First Lien Secured Debt - Revolver	7.36% (3M L+575, 1.00% Floor)	04/23/24	1,400		1,400	1,320	(9)(23)
	First Lien Secured Debt - Revolver	6.82% (3M L+575, 1.00% Floor)	04/23/24	467		467	440	(9)(23)
	First Lien Secured Debt - Revolver	7.53% (3M L+575, 1.00% Floor)	04/23/24	700		700	660	(9)(23)
	First Lien Secured Debt - Revolver	6.75% (3M L+575, 1.00% Floor)	04/23/24	933		891	880	(9)(23)
	Common Equity - Common Stock	N/A	N/A	5,000 Shares		500	204	(9)(13)
						26,262	24,819
Jones & Frank
JF Acquisition, LLC	First Lien Secured Debt	6.77% (3M L+550, 1.00% Floor)	07/31/24	5,272		5,179	5,087	(9)
	First Lien Secured Debt	7.28% (3M L+550, 1.00% Floor)	07/31/24	8,118		7,977	7,832	(9)
	First Lien Secured Debt - Revolver	6.50% (1M L+550, 1.00% Floor)	07/31/24	628		600	605	(9)(23)
	First Lien Secured Debt - Revolver	7.28% (3M L+550, 1.00% Floor)	07/31/24	188		188	182	(9)(23)
	First Lien Secured Debt - Revolver	7.75% (P+450)	07/31/24	753		753	726	(9)(23)
						14,697	14,432
MAKS
Trident Bidco Limited	First Lien Secured Debt	7.25% (1M L+625, 1.00% Floor)	11/08/25	35,000		34,019	33,649	(9)(17)
McLarens
Margaux Acquisition Inc.	First Lien Secured Debt	7.41% (3M L+550, 1.00% Floor)	12/19/24	18,800		18,526	17,800	(9)
	First Lien Secured Debt - Revolver	6.50% (1M L+550, 1.00% Floor)	12/19/24	1,601		1,576	1,516	(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	12/19/24	4,461		(92)	(236)	(8)(9) (21)(23)
Margaux UK Finance Limited	First Lien Secured Debt	6.50% (3M GBPL+550, 1.00% Floor)	12/19/24	£	5,896	7,332	6,930	(9)(17)
	First Lien Secured Debt - Revolver	6.50% (1M GBPL+550, 1.00% Floor)	12/19/24	£	538	632	631	(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/19/24	£	4	(11)	—	(8)(9) (17)(21) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	12/19/24	£	1,353	(27)	(89)	(8)(9) (17)(21) (23)
						27,936	26,552

See notes to financial statements.

37

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)	Cost (28)	Fair Value (1)(29)
Ministry Brands, LLC
Ministry Brands, LLC	Second Lien Secured Debt	10.51% (2M L+925, 1.00% Floor)	06/02/23	10,000	9,925	9,795
Newscycle Solutions, Inc.
Newscycle Solutions, Inc.	First Lien Secured Debt	8.45% (3M L+700, 1.00% Floor)	12/29/22	14,641	14,434	14,202	(9)
	First Lien Secured Debt	8.58% (3M L+700, 1.00% Floor)	12/29/22	1,131	1,121	1,097	(9)
	First Lien Secured Debt - Revolver	8.00% (1M L+700, 1.00% Floor)	12/29/22	40	33	39	(9)(23)
	First Lien Secured Debt - Revolver	8.45% (1M L+700, 1.00% Floor)	12/29/22	460	460	446	(9)(23)
					16,048	15,784
PSI Services, LLC
Lifelong Learner Holdings, LLC	First Lien Secured Debt	6.75% (1M L+575, 1.00% Floor)	10/19/26	32,865	32,234	31,334	(9)
	First Lien Secured Debt - Revolver	6.75% (3M L+575, 1.00% Floor)	10/20/25	478	478	457	(9)(23)
	First Lien Secured Debt - Revolver	6.87% (3M L+575, 1.00% Floor)	10/20/25	1,373	1,373	1,315	(9)(23)
	First Lien Secured Debt - Revolver	7.33% (3M L+575, 1.00% Floor)	10/20/25	239	239	229	(9)(23)
	First Lien Secured Debt - Revolver	7.71% (3M L+575, 1.00% Floor)	10/20/25	299	299	286	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	10/20/25	597	(55)	(25)	(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	10/19/26	2,388	(18)	(111)	(8)(9) (21)(23)
					34,550	33,485
RA Outdoors, LLC (Active Outdoors)
RA Outdoors, LLC	First Lien Secured Debt	5.82% (6M L+475, 1.00% Floor)	09/11/24	6,626	6,542	6,428	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/09/22	1,200	(12)	(24)	(8)(9) (21)(23)
	Second Lien Secured Debt	9.82% (6M L+875, 1.00% Floor)	09/11/25	31,950	31,404	30,352	(9)
					37,934	36,756
Soliant
Soliant Holdings, LLC	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	12/31/26	18,064	17,715	17,587	(9)
	First Lien Secured Debt - Revolver	6.50% (1M L+550, 1.00% Floor)	12/31/24	323	323	310	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/31/24	1,614	(37)	(62)	(8)(9) (21)(23)
Soliant Health, Inc.	Common Equity/Interests - Common Stock	N/A	N/A	300 Shares	300	300	(9)(13)
					18,301	18,135
Transplace Holdings, Inc.
Transplace Holdings, Inc.	Second Lien Secured Debt	9.82% (3M L+875, 1.00% Floor)	10/06/25	8,599	8,449	8,169
US Legal Support
US Legal Support Investment Holdings, LLC	Common Equity/Interests - Series A-1 Units	N/A	N/A	631,972 Shares	632	623	(9)(13)
USLS Acquisition, Inc.	First Lien Secured Debt	6.82% (6M L+575, 1.00% Floor)	12/02/24	24,498	24,111	23,630	(9)
	First Lien Secured Debt - Revolver	6.82% (6M L+575)	12/02/24	1,522	1,497	1,436	(9)(23)
	First Lien Secured Debt - Letters of Credit	5.75%	06/06/20 - 12/21/20	86	—	(5)	(8)(9) (23)
					26,240	25,684

See notes to financial statements.

38

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
Vertafore
Vertafore, Inc.	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/30/23	14,576		(1,121)		(1,676)		(8)(21) (23)
	First Lien Secured Debt - Letter of Credit	3.25%	01/17/21	424		—		(49)		(8)(23)
						(1,121)		(1,725)
Total Business Services						$	376,459	$	360,631
Chemicals, Plastics & Rubber
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)
Carbonfree Caustic SPE LLC (4)	First Lien Secured Debt	5.00%	12/31/24	$	13,111	$	13,111	$	13,111
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC) (4)	First Lien Secured Debt	3.00%	12/31/24	17,057		17,057		4,389
Carbonfree Chemicals Holdings LLC (4)	Common Equity/Interests - Common Stock	N/A	N/A	1,446 Shares		30,886		15,105		(13)
Carbonfree Chemicals SA LLC (4)	Common Equity/Interests - Class B Units	N/A	N/A	1,313 Shares		15,403		—		(13)
						76,457		32,605
Niacet Corporation
Hare Bidco, Inc.	Second Lien Secured Debt	9.75% (1M E+875)	08/01/24	€	13,574	14,506		14,671
Westfall Technik, Inc.
Westfall Technik, Inc.	First Lien Secured Debt	7.20% (3M L+575, 1.00% Floor)	09/13/24	15,268		15,033		14,839		(9)
	First Lien Secured Debt	7.02% (3M L+575, 1.00% Floor)	09/13/24	671		665		653		(9)
	First Lien Secured Debt - Revolver	7.21% (3M L+550, 1.00% Floor)	09/13/24	135		105		131		(9)(23)
	First Lien Secured Debt - Revolver	8.00% (P+475)	09/13/24	1,885		1,885		1,831		(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	09/13/24	12,829		(112)		(360)		(8)(9) (21)(23)
						17,576		17,094
Total Chemicals, Plastics & Rubber						$	108,539	$	64,370
Construction & Building
Englert
Gutter Buyer, Inc.	First Lien Secured Debt	7.25% (1M L+625, 1.00% Floor)	03/06/25	$	26,915	$	26,479	$	25,873	(9)
	First Lien Secured Debt - Revolver	8.50% (P+525)	03/06/24	2,727		2,674		2,621		(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	03/06/25	2,045		(42)		(79)		(8)(9) (21)(23)
Gutter Holdings, LP	Common Equity/Interests - Common Stock	N/A	N/A	500 Shares		500		558		(9)(13)
Total Construction & Building						$	29,611	$	28,973
Consumer Goods – Durable
A&V
A&V Holdings Midco, LLC	First Lien Secured Debt	5.75% (3M L+475, 1.00% Floor)	03/10/27	$	11,137	$	11,027	$	11,027
	First Lien Secured Debt - Revolver	5.50% (1M L+450, 1.00% Floor)	03/10/25	813		813		805		(23)
	First Lien Secured Debt - Revolver	5.50% (3M L+450, 1.00% Floor)	03/10/25	90		90		89		(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/10/25	602		(134)		(6)		(8)(21) (23)
						11,796		11,915

See notes to financial statements.

39

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)	Fair Value (1)(29)
Dan Dee
Project Comfort Buyer, Inc.	First Lien Secured Debt	8.00% (6M L+700, 1.00% Floor)	02/03/25	26,283		25,665	24,969	(9)
	First Lien Secured Debt	9.25% (P+600)	02/03/25	867		846	823	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/01/24	3,461		(80)	(173)	(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	02/03/25	2,308		(28)	(115)	(8)(9) (21)(23)
	Preferred Equity - Preferred Stock	N/A	N/A	461,538 Shares		462	231	(9)(13)
						26,865	25,735
Hayward Industries, Inc.
Hayward Industries, Inc.	Second Lien Secured Debt	9.24% (1M L+825)	08/04/25	21,919		21,693	20,639
KDC
KDC US Holdings	First Lien Secured Debt - Revolver	5.50% (P+225)	12/21/23	5,731		5,732	5,173	(23)
	First Lien Secured Debt - Unfunded Revolver	0.25% Unfunded	12/21/23	214		—	(22)	(8)(21) (23)
	First Lien Secured Debt - Letters of Credit	3.25%	11/06/20 - 03/08/21	65		—	(6)	(8)(23)
	First Lien Secured Debt - Letter of Credit	3.25%	02/05/21	£	10	—	—	(8)(23)
						5,732	5,145
KLO Holdings, LLC
9357-5991 Quebec Inc.	First Lien Secured Debt	11.82% (3M L+775 Cash plus 2.00% PIK)	04/07/22	9,562		8,653	2,118	(13)(14)
KLO Acquisition LLC	First Lien Secured Debt	11.82% (3M L+775 Cash plus 2.00% PIK)	04/07/22	5,373		4,838	30	(13)(14)
						13,491	2,148
NSi Industries
Wildcat BuyerCo, Inc.	First Lien Secured Debt	7.14% (3M L+550, 1.00% Floor)	02/27/26	6,087		5,946	5,946
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/27/26	717		(16)	(16)	(8)(21) (23)
	First Lien Secured Debt - Letter of Credit	5.50%	08/30/20	8		—	—	(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	02/27/26	3,188		(35)	(72)	(8)(21) (23)
Wildcat Parent LP	Common Equity/Interests - Common Stock	N/A	N/A	1,000 Shares		100	100	(13)
						5,995	5,958
Liqui-Box
Liqui-Box Holdings, Inc.	First Lien Secured Debt - Revolver	5.95% (3M L+450, 1.00% Floor)	02/26/25	475		475	470	(23)
	First Lien Secured Debt - Revolver	5.50% (3M L+450, 1.00% Floor)	02/26/25	712		712	705	(23)
	First Lien Secured Debt - Revolver	5.73% (3M L+450, 1.00% Floor)	02/26/25	1,186		1,186	1,175	(23)
	First Lien Secured Debt - Revolver	5.77% (3M L+450, 1.00% Floor)	02/26/25	712		712	705	(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/26/25	401		(35)	(4)	(8)(21) (23)
	First Lien Secured Debt - Letters of Credit	4.50%	09/27/20 - 10/01/20	32		—	—	(23)
	First Lien Secured Debt - Letter of Credit	4.50%	06/30/21	€	42	—	—	(23)
						3,050	3,051

See notes to financial statements.

40

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
Sorenson Holdings, LLC
Sorenson Holdings, LLC	Common Equity/Interests - Membership Interests	N/A	N/A	587 Shares		—		418		(10)(13)
Total Consumer Goods – Durable						$	88,622	$	75,009
Consumer Goods – Non-durable
3D Protein
Protein For Pets Opco, LLC	First Lien Secured Debt	6.00% (1M L+500, 1.00% Floor)	11/28/25	$	12,717	$	12,495	$	12,399	(9)
	First Lien Secured Debt - Revolver	6.22% (3M L+500, 1.00% Floor)	05/31/24	444		444		433		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	05/31/24	1,775		(48)		(44)		(8)(9) (21)(23)
						12,891		12,788
Beauty Industry Group (BIG)
BIG Buyer, LLC	First Lien Secured Debt	7.57% (6M L+650, 1.00% Floor)	11/20/23	22,368		21,889		21,504		(9)
	First Lien Secured Debt - Revolver	7.57% (6M L+650, 1.00% Floor)	11/20/23	120		120		114		(9)(23)
	First Lien Secured Debt - Revolver	7.50% (1M L+650, 1.00% Floor)	11/20/23	602		602		570		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/20/23	1,083		(39)		(57)		(8)(9) (21)(23)
						22,572		22,131
DMC
Lion Cashmere Midco Limited	First Lien Secured Debt	6.75% (6M L+575, 1.00% Floor)	03/21/25	13,053		12,863		11,969		(9)(17)
	First Lien Secured Debt - Revolver	5.75% (3M E+525)	03/21/24	€	356	392		357		(9)(17) (23)
	First Lien Secured Debt - Revolver	5.75% (6M E+525)	03/21/24	€	605	655		608		(9)(17) (23)
	First Lien Secured Debt - Revolver	5.86% (6M GBPL+525)	03/21/24	€	225	247		226		(9)(17) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	2.01% Unfunded	03/21/25	€	2,371	(39)		(216)		(8)(9) (17)(21) (23)
						14,118		12,944
Olaplex
Olaplex, Inc.	First Lien Secured Debt	7.50% (1M L+650, 1.00% Floor)	01/08/26	26,200		25,696		25,696		(9)
	First Lien Secured Debt - Revolver	7.50% (1M L+650, 1.00% Floor)	01/08/25	3,800		3,727		3,724		(9)(23)
						29,423		29,420
Sequential Brands Group, Inc.
Sequential Brands Group, Inc.	Second Lien Secured Debt	9.75% (1M L+875)	02/07/24	12,965		$	12,882	$	12,289	(17)
Total Consumer Goods – Non-durable						$	91,886	$	89,572
Consumer Services
1A Smart Start LLC
1A Smart Start LLC	Second Lien Secured Debt	9.32% (3M L+825, 1.00% Floor)	08/22/22	$	25,100	$	24,842	$	24,282
Clarus Commerce
Marlin DTC-LS Midco 2, LLC	First Lien Secured Debt	6.57% (6M L+550, 1.00% Floor)	07/01/25	9,245		9,103		8,806
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	07/01/25	685		(10)		(33)		(8)(21) (23)
						9,093		8,773

See notes to financial statements.

41

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
First Heritage
First Heritage Credit, LLC	First Lien Secured Debt	6.33% (1M L+475)	04/02/22	18,450		18,340		17,959		(9)
	First Lien Secured Debt - Revolver	7.08% (1M L+550)	04/02/22	517		517		504		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/02/22	3,233		(25)		(83)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	04/02/22	7,800		(65)		(207)		(8)(9) (21)(23)
						18,767		18,173
Only About Children
Nemo (BC) Bidco Pty Ltd	First Lien Secured Debt	6.75% (1M BBSW+575, 1.00% Floor)	04/06/24	A$	6,768	4,923		3,894		(17)
	First Lien Secured Debt - Unfunded Delayed Draw	2.59% Unfunded	04/06/24	A$	232	(7)		(9)		(8)(17) (21)(23)
						4,916		3,885
Paper Source
Paper Source, Inc.	First Lien Secured Debt	8.78% (3M L+700, 1.00% Floor)	05/22/24	11,620		11,427		10,981		(9)
	First Lien Secured Debt - Revolver	9.25% (P+600)	05/22/24	1,890		1,890		1,786		(9)(23)
	First Lien Secured Debt - Revolver	8.70% (3M L+700, 1.00% Floor)	05/22/24	205		154		194		(9)(23)
	First Lien Secured Debt - Revolver	8.74% (3M L+700, 1.00% Floor)	05/22/24	411		411		388		(9)(23)
	First Lien Secured Debt - Revolver	8.83% (3M L+700, 1.00% Floor)	05/22/24	205		205		194		(9)(23)
	First Lien Secured Debt - Revolver	8.85% (3M L+700, 1.00% Floor)	05/22/24	370		370		350		(9)(23)
						14,457		13,893
Pinstripe Holdings, LLC
Pinstripe Holdings, LLC	First Lien Secured Debt	7.08% (6M L+600, 1.00% Floor)	01/17/25	6,930		6,819		6,547
The Club Company
Eldrickco Limited	First Lien Secured Debt	6.04% (3M GBPL+550, 0.50% Floor)	11/21/25	£	750	938		869		(9)(17)
	First Lien Secured Debt	6.23% (3M GBPL+550, 0.50% Floor)	11/21/25	£	9,914	12,376		11,336		(9)(17)
	First Lien Secured Debt - Revolver	5.52% (3M GBPL+500, 0.50% Floor)	05/21/25	£	345	394		394		(9)(17) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.93% Unfunded	11/21/25	£	3,991	(104)		(326)		(8)(9) (17)(21) (23)
						13,604		12,273
Tidewater Consumer Receivables, LLC
Tidewater Consumer Receivables, LLC	First Lien Secured Debt	7.33% (1M L+575)	12/28/23	11,333		11,248		11,090		(9)(17)
	First Lien Secured Debt - Revolver	7.33% (1M L+575)	12/28/23	1,537		1,537		1,504		(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	0.00% Unfunded	12/28/23	130		(9)		(3)		(8)(9) (17)(21) (23)
						12,776		12,591
US Auto
U.S. Auto Finance, Inc.	First Lien Secured Debt	6.33% (3M L+475)	04/17/22	20,893		20,824		20,351		(9)
	First Lien Secured Debt - Revolver	7.08% (3M L+550)	04/17/22	3,052		3,052		2,973		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/17/22	16,948		(71)		(441)		(8)(9) (21)(23)
						23,805		22,883
Total Consumer Services						$	129,079	$	123,300

See notes to financial statements.

42

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
Containers, Packaging & Glass
TricorBraun Holdings, Inc.
TricorBraun Holdings, Inc.	First Lien Secured Debt - Revolver	4.05% (1M L+325)	11/30/21	$	1,500	$	1,500	$	1,478	(23)
	First Lien Secured Debt - Revolver	5.50% (P+225)	11/30/21	3,750		3,750		3,695		(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/30/21	375		(169)		(6)		(8)(21) (23)
Total Containers, Packaging & Glass						$	5,081	$	5,167
Diversified Investment Vehicles, Banking, Finance, Real Estate
Celink
Compu-Link Corporation	First Lien Secured Debt - Revolver	6.50% (1M L+550, 1.00% Floor)	06/11/24	$	45	$	3	$	44	(9)(23)
	First Lien Secured Debt - Revolver	6.72% (3M L+550, 1.00% Floor)	06/11/24	2,227		2,227		2,152		(9)(23)
Peer Advisors, LLC	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	06/11/24	21,875		21,461		21,138		(9)
						23,691		23,334
Exeter Property Group, LLC
Exeter Property Group, LLC	First Lien Secured Debt	6.08% (1M L+450)	08/28/24	4,772		4,714		4,618		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/28/24	192		(2)		(6)		(8)(9) (21)(23)
						4,712		4,612
Flock Financial, LLC
Flock SPV I, LLC	First Lien Secured Debt	8.08% (1M L+650)	08/30/22	13,067		13,018		12,788		(9)(17)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/30/22	1,333		(8)		(28)		(8)(9) (17)(21) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	08/30/22	5,600		(64)		(119)		(8)(9) (17)(21) (23)
						12,946		12,641
Golden Bear
Golden Bear 2016-R, LLC (4)	Structured Products and Other - Membership Interests	N/A	09/20/42	—		16,729		9,748		(3)(17)
Purchasing Power, LLC
Purchasing Power Funding I, LLC	First Lien Secured Debt - Revolver	8.08% (1M L+650)	01/24/22	4,608		4,608		4,529		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/24/22	4,504		—		(77)		(8)(9) (21)(23)
						4,608		4,452
Taupo River II, LLC
Taupo River II, LLC	First Lien Secured Debt	7.16% (3M L+525, 1.00% Floor)	06/08/20	14,000		13,993		13,966		(9)(17)
Ten-X, LLC
Ten-X, LLC	First Lien Secured Debt - Revolver	4.00% (1M L+325)	09/29/22	3,120		3,120		2,911		(23)
	First Lien Secured Debt - Revolver	4.19% (1M L+325)	09/29/22	1,560		1,350		1,455		(23)
						4,470		4,366
Total Diversified Investment Vehicles, Banking, Finance, Real Estate						$	81,149	$	73,119
Education
NFA Group
SSCP Spring Bidco Limited	First Lien Secured Debt	6.94% (6M GPBL+625, 0.50% Floor)	07/30/25	£	535	$	641	$	634	(9)(17)
	First Lien Secured Debt	6.99% (6M GBPL+625, 0.50% Floor)	07/30/25	£	28,370	33,983		33,627		(9)(17)

See notes to financial statements.

43

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
	First Lien Secured Debt - Unfunded Delayed Draw	1.88% Unfunded	07/30/25	£	1,095	(29)		(60)		(8)(9) (17)(21) (23)
Total Education						$	34,595	$	34,201
Energy – Electricity
AMP Solar Group, Inc.
AMP Solar Group, Inc. (4)	Common Equity/Interests - Class A Common Unit	N/A	N/A	243,646 Shares		$	10,000	$	8,736	(13)(17)
Renew Financial LLC (f/k/a Renewable Funding, LLC)
AIC SPV Holdings II, LLC (4)	Preferred Equity - Preferred Stock	N/A	N/A	143 Shares		534		442		(15)(17)
Renew Financial LLC (f/k/a Renewable Funding, LLC) (4)	Preferred Equity - Series B Preferred Stock	N/A	N/A	1,505,868 Shares		8,343		3,284		(13)
	Preferred Equity - Series D Preferred Stock	N/A	N/A	436,689 Shares		5,568		2,101		(13)
Renew JV LLC (4)	Common Equity/Interests - Membership Interests	N/A	N/A	893,336 Shares		893		914		(13)(17)
						15,338		6,741
Solarplicity Group Limited (f/k/a AMP Solar UK)
Solarplicity UK Holdings Limited	First Lien Secured Debt	4.00%	03/08/23	£	5,562	7,637		3,787		(13)(14) (17)
	Preferred Equity - Preferred Stock	N/A	N/A	4,286 Shares		5,861		—		(2)(13) (17)
	Common Equity - Ordinary Shares	N/A	N/A	2,825 Shares		4		—		(2)(13) (17)
						13,502		3,787
Total Energy – Electricity						$	38,840	$	19,264
Energy – Oil & Gas
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (5)	Second Lien Secured Debt	10.00% PIK Toggle (8.00% Cash)	03/29/21	$	37,234	$	36,926	$	14,711	(13)(14)
	Common Equity/Interests - Common Stock	N/A	N/A	5,000,000 Shares		30,078		—		(13)
						67,004		14,711
Pelican
Pelican Energy, LLC (4)	Common Equity/Interests - Membership Interests	N/A	N/A	1,444 Shares		16,822		2,411		(13)(16) (17)
Spotted Hawk
SHD Oil & Gas, LLC (5)	First Lien Secured Debt - Tranche C Note	12.00%	07/31/21	24,000		24,000		24,720
	First Lien Secured Debt - Tranche A Note	4.00% (4.00% Cash plus 0.00% PIK)	07/31/21	45,457		44,998		22,495		(13)(14)
	First Lien Secured Debt - Tranche B Note	3.00% PIK	07/31/21	84,484		44,380		—		(13)(14)
	Common Equity/Interests - Series A Units	N/A	N/A	7,600,000 Shares		1,411		—		(13)(16)
						114,789		47,215
Total Energy – Oil & Gas						$	198,615	$	64,337
Environmental Industries
Denali
Dispatch Acquisition Holdings, LLC	First Lien Secured Debt	7.27% (3M L+550, 1.00% Floor)	01/29/27	$	16,342	$	15,983	$	15,983	(9)
	First Lien Secured Debt - Revolver	7.28% (3M L+550, 1.00% Floor)	01/29/26	325		325		317		(9)(23)
	First Lien Secured Debt - Revolver	7.27% (3M L+550, 1.00% Floor)	01/29/26	812		812		793		(9)(23)

See notes to financial statements.

44

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
	First Lien Secured Debt - Revolver	7.75% (P+450)	01/29/26	325		325		317		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/29/26	1,786		(71)		(40)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.75% Unfunded	01/29/27	5,411		(66)		(122)		(8)(9) (21)(23)
						17,308		17,248
Ortega National Parks
Ortega National Parks, LLC	First Lien Secured Debt	6.32% (6M L+525, 1.00% Floor)	10/31/25	11,229		11,020		10,551		(9)
	First Lien Secured Debt	6.52% (3M L+525, 1.00% Floor)	10/31/25	492		487		462		(9)
	First Lien Secured Debt - Revolver	6.45% (3M L+525, 1.00% Floor)	10/31/25	1,503		1,465		1,411		(9)(23)
	First Lien Secured Debt - Revolver	7.04% (3M L+525, 1.00% Floor)	10/31/25	273		273		257		(9)(23)
	First Lien Secured Debt - Revolver	7.16% (3M L+525, 1.00% Floor)	10/31/25	273		273		257		(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	10/31/25	6,202		(62)		(375)		(8)(9) (21)(23)
						13,456		12,563
Total Environmental Industries						$	30,764	$	29,811
Food & Grocery
Bumble Bee Foods S.À R.L.
Bumble Bee Holdings Inc	First Lien Secured Debt	N/A	01/31/24	$	443	$	—	$	430
Connors Bros Clover Leaf Seafoods Company	First Lien Secured Debt	N/A	01/31/24	126		—		122
Tonos US LLC	First Lien Secured Debt	8.96% (3M L+725, 1.50% Floor)	01/31/24	15,123		15,319		14,670
Total Food & Grocery						$	15,319	$	15,222
Healthcare & Pharmaceuticals
Altasciences, Inc.
9360-1367 Quebec Inc.	First Lien Secured Debt	8.49% (3M CADL+625, 1.00% Floor)	06/09/23	C$	2,357	$	1,734	$	1,602	(9)(17)
	First Lien Secured Debt	7.32% (6M L+625, 1.00% Floor)	06/09/23	$	2,821	2,787		2,730		(9)(17)
	First Lien Secured Debt	7.25% (1M L+625, 1.00% Floor)	06/09/23	19		19		18		(9)(17)
Altasciences US Acquistion, Inc.	First Lien Secured Debt	7.32% (6M L+625, 1.00% Floor)	06/09/23	5,959		5,879		5,765		(9)
	First Lien Secured Debt	7.25% (1M L+625, 1.00% Floor)	06/09/23	37		37		36		(9)
	First Lien Secured Debt - Revolver	7.30% (3M L+625, 1.00% Floor)	06/09/23	392		392		379		(9)(23)
	First Lien Secured Debt - Revolver	7.45% (3M L+625, 1.00% Floor)	06/09/23	456		456		441		(9)(23)
	First Lien Secured Debt - Revolver	7.52% (3M L+625, 1.00% Floor)	06/09/23	570		570		552		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.25% Unfunded	06/09/23	7		(17)		—		(8)(9) (11)(21) (23)
						11,857		11,523
American Veterinary Group
AVG Intermediate Holdings LLC	First Lien Secured Debt	9.00% (1M L+800, 1.00% Floor)	02/08/24	11,759		11,642		11,097		(9)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	02/08/24	1,466		(113)		(83)		(8)(9) (21)(23)
						11,529		11,014

See notes to financial statements.

45

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)	Fair Value (1)(29)
AmeriVet
Amerivet Partners Management, Inc.	First Lien Secured Debt	7.75% (1M L+675, 1.00% Floor)	06/05/24	26,429		25,944	25,480	(9)
	First Lien Secured Debt - Revolver	9.00% (P+575)	06/05/24	524		524	505	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/05/24	282		(14)	(10)	(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	06/05/24	7,648		(95)	(275)	(8)(9) (21)(23)
Amerivet Partners Parent LP	Common Equity/Interests - Class D Partnership Units	N/A	N/A	13 Shares		125	144	(9)(13)
						26,484	25,844
Analogic
Analogic Corporation	First Lien Secured Debt	6.25% (1M L+525, 1.00% Floor)	06/22/24	18,215		17,894	17,851	(9)
	First Lien Secured Debt - Revolver	6.25% (1M L+525, 1.00% Floor)	06/22/23	157		157	153	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/22/23	1,670		(42)	(33)	(8)(9) (21)(23)
						18,009	17,971
BioClinica Holding I, LP
BioClinica Holding I, LP	Second Lien Secured Debt	9.25% (1M L+825, 1.00% Floor)	10/21/24	24,612		24,303	23,345
BK Medical
BK Medical Holding Company, Inc.	First Lien Secured Debt	6.25% (1M L+525, 1.00% Floor)	06/22/24	7,304		7,235	7,234	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/22/23	783		(7)	(8)	(8)(9) (21)(23)
						7,228	7,226
CARE Fertility
Royton Bidco Limited	First Lien Secured Debt	6.29% (3M GBPL+575, 0.50% Floor)	05/09/25	£	559	647	650	(9)(17)
	First Lien Secured Debt	6.42% (3M GBPL+575, 0.50% Floor)	05/09/25	£	15,588	19,794	18,130	(9)(17)
	First Lien Secured Debt	6.48% (6M GBPL+575, 0.50% Floor)	05/09/25	£	293	370	340	(9)(17)
	First Lien Secured Debt - Unfunded Delayed Draw	2.01% Unfunded	05/09/25	£	3,559	(74)	(274)	(8)(9) (17)(21) (23)
						20,737	18,846
Cerus
Cerus Corporation	First Lien Secured Debt	7.25% (1M L+545, 1.80% Floor)	03/01/24	12,000		11,952	12,146	(9)(17)
	First Lien Secured Debt - Revolver	5.55% (1M L+375, 1.80% Floor)	03/01/24	187		187	189	(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/01/24	313		(1)	—	(9)(17) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	03/01/24	9,000		(36)	—	(9)(17) (21)(23)
						12,102	12,335
Dohmen Life Science Services
LSCS Holdings, Inc	Second Lien Secured Debt	9.70% (3M L+825)	03/16/26	19,818		19,473	18,901
Emmes Corporation
Emmes Blocker, Inc.	Common Equity/Interests - Common Stock	N/A	N/A	306 Shares		306	314	(9)(13)
The Emmes Company, LLC	First Lien Secured Debt	6.58% (1M L+500, 1.00% Floor)	03/03/25	12,122		11,973	11,819	(9)
	First Lien Secured Debt - Revolver	6.00% (1M L+500, 1.00% Floor)	03/03/25	2,449		2,419	2,388	(9)(23)
						14,698	14,521

See notes to financial statements.

46

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)	Cost (28)	Fair Value (1)(29)
Genesis Healthcare, Inc.
Genesis Healthcare, Inc.	First Lien Secured Debt	12.58% (1M L+1100, 1.00% Floor)	03/06/23	8,370	8,370	8,197	(9)
	First Lien Secured Debt	7.58% (1M L+600, 0.50% Floor)	03/06/23	25,000	24,780	24,237	(9)
	First Lien Secured Debt - Revolver	7.58% (1M L+600, 0.50% Floor)	03/08/23	14,069	14,069	13,605	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/08/23	46,801	(462)	(1,542)	(8)(9) (21)(23)
					46,757	44,497
Gossamer
GB001, Inc.	First Lien Secured Debt	8.15% (1M L+615, 2.00% Floor)	05/01/24	6,000	5,970	6,049	(9)(17)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	05/01/24	24,000	(196)	—	(9)(17) (21)(23)
					5,774	6,049
Health & Safety Institute
HSI Halo Acquisition, Inc.	First Lien Secured Debt	6.75% (1M L+575, 1.00% Floor)	08/31/26	25,288	25,053	24,360	(9)
	First Lien Secured Debt - Revolver	8.00% (P+475)	08/30/25	2,049	2,049	1,983	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/30/25	410	(22)	(13)	(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	08/31/26	2,131	(38)	(78)	(8)(9) (21)(23)
	Common Equity/Interests - Common Stock	N/A	N/A	500 Shares	500	398	(9)(13)
					27,542	26,650
IMA Group
IMA Group Management Company, LLC	First Lien Secured Debt	6.57% (6M L+550, 1.00% Floor)	05/30/24	5,126	5,083	4,921
IM Acquirer LLC	First Lien Secured Debt - Revolver	6.50% (1M L+550, 1.00% Floor)	05/30/24	289	287	277	(23)
					5,370	5,198
KureSmart
Clearway Corporation (f/k/a NP/Clearway Holdings, Inc.)	Common Equity/Interests - Partnership Interests	N/A	N/A	133 Shares	133	120	(9)(13)
Kure Pain Holdings, Inc.	First Lien Secured Debt	6.50% (1M L+550, 1.00% Floor)	08/27/24	22,102	21,810	21,015	(9)
	First Lien Secured Debt - Revolver	6.50% (1M L+550, 1.00% Floor)	08/27/24	2,654	2,619	2,522	(9)(23)
					24,562	23,657
Lanai Holdings III, Inc. (Patterson Medical)
Lanai Holdings III, Inc.	Second Lien Secured Debt	10.28% (3M L+1050 PIK, 1.00% Floor)	08/28/23	17,391	17,138	14,383
Mannkind Corporation
Mannkind Corporation	First Lien Secured Debt	8.75% (1M L+675, 2.00% Floor)	08/01/24	13,867	13,806	13,639	(9)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	08/01/24	12,133	(53)	(199)	(8)(9) (21)(23)
					13,753	13,440
Maxor National Pharmacy Services, LLC
Maxor National Pharmacy Services, LLC	First Lien Secured Debt	6.95% (3M L+550, 1.00% Floor)	11/22/23	24,476	24,107	23,754	(9)
	First Lien Secured Debt - Revolver	7.75% (P+450)	11/22/22	779	779	760	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/22/22	779	(21)	(19)	(8)(9) (21)(23)
					24,865	24,495

See notes to financial statements.

47

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)	Fair Value (1)(29)
Medical Guardian
Medical Guardian, LLC	First Lien Secured Debt	9.50% (1M L+850, 1.00% Floor)	12/31/24	34,286		33,635	33,600	(9)
	First Lien Secured Debt - Revolver	9.50% (1M L+850, 1.00% Floor)	12/31/24	381		381	373	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/31/24	5,333		(108)	(107)	(8)(9) (21)(23)
						33,908	33,866
Orchard
Orchard Therapeutics plc	First Lien Secured Debt	7.58% (1M L+600, 1.00% Floor)	05/24/24	8,333		8,299	8,257	(9)(17)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	05/24/24	16,667		(69)	(153)	(8)(9) (17)(21) (23)
						8,230	8,104
Ovation Fertility
FPG Services, LLC	First Lien Secured Debt	6.95% (3M L+550, 1.00% Floor)	06/13/25	12,537		12,319	11,820	(9)
	First Lien Secured Debt - Revolver	6.50% (6M L+550, 1.00% Floor)	06/13/24	2,105		2,070	1,985	(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	06/13/25	5,263		(46)	(301)	(8)(9) (21)(23)
						14,343	13,504
Partner Therapeutics, Inc
Partner Therapeutics, Inc	First Lien Secured Debt	8.23% (1M L+665, 1.00% Floor)	01/01/23	10,000		9,896	9,945	(9)
	Preferred Equity - Preferred Stock	N/A	N/A	55,556 Shares		333	333	(9)(13)
	Warrants	N/A	N/A	33,333 Shares		135	88	(9)(13)
						10,364	10,366
PHS
PHS Buyer, Inc.	First Lien Secured Debt	6.70% (3M L+525, 1.00% Floor)	01/31/25	12,870		12,636	12,548	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/31/25	2,000		(36)	(50)	(8)(9) (21)(23)
						12,600	12,498
ProPharma
ProPharma Group Intermediate, LLC	First Lien Secured Debt	6.74% (1M L+575, 0.50% Floor)	07/12/23	€	6,357	7,196	6,835
	First Lien Secured Debt	6.74% (1M L+575, 0.50% Floor)	07/12/23	£	4,220	5,490	5,128
	First Lien Secured Debt	6.74% (1M L+575, 0.50% Floor)	07/12/23	11,358		11,276	11,132
	First Lien Secured Debt - Revolver	7.20% (1M L+575, 0.50% Floor)	07/12/23	1,032		1,025	1,012	(23)
						24,987	24,107
PTC Therapeutics, Inc
PTC Therapeutics, Inc	First Lien Secured Debt	7.73% (1M L+615, 1.00% Floor)	05/01/21	7,389		7,379	7,463	(9)(17)
Radius Health
Radius Health, Inc.	First Lien Secured Debt	7.75% (1M L+575, 2.00% Floor)	06/01/24	3,000		2,993	2,993	(9)(17)
	First Lien Secured Debt - Unfunded Revolver	0.00% Unfunded	06/01/24	2,000		(5)	(5)	(8)(9) (17)(21) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	06/01/24	13,500		—	(33)	(8)(9) (17)(21) (23)
						2,988	2,955

See notes to financial statements.

48

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
RHA Health Services
Pace Health Companies, LLC	First Lien Secured Debt	5.95% (3M L+450, 1.00% Floor)	08/02/24	547		538		525		(9)
	First Lien Secured Debt - Revolver	5.50% (1M L+450, 1.00% Floor)	08/02/24	433		424		415		(9)(23)
	First Lien Secured Debt - Letter of Credit	4.50%	12/10/20	68		—		(3)		(8)(9) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	08/02/24	3,950		(35)		(163)		(8)(9) (21)(23)
						927		774
Rigel Pharmaceuticals
Rigel Pharmaceuticals, Inc.	First Lien Secured Debt	7.23% (1M L+565, 1.50% Floor)	09/01/24	3,000		3,001		2,959		(9)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	09/01/24	3,000		—		(41)		(8)(9) (21)(23)
						3,001		2,918
RiteDose Holdings I, Inc.
RiteDose Holdings I, Inc.	First Lien Secured Debt	8.41% (3M L+650, 1.00% Floor)	09/13/23	14,662		14,387		14,114		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/13/22	2,000		(32)		(57)		(8)(9) (21)(23)
						14,355		14,057
Teladoc, Inc.
Teladoc, Inc.	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	07/14/20	1,306		(6)		—		(17)(21) (23)
	First Lien Secured Debt - Letters of Credit	7.25%	05/11/20 - 07/14/20	360		—		—		(17)(23)
						(6)		—
Wright Medical Group, Inc.
Wright Medical Group, Inc.	First Lien Secured Debt	9.43% (1M L+785, 1.00% Floor)	12/23/21	6,667		6,603		6,733		(9)(17)
	First Lien Secured Debt - Revolver	5.83% (1M L+425, 0.75% Floor)	12/23/21	7,666		7,666		7,724		(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/23/21	50,667		(224)		—		(9)(17) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	12/23/21	11,667		(63)		—		(9)(17) (21)(23)
						13,982		14,457
Total Healthcare & Pharmaceuticals						$	479,239	$	464,964
High Tech Industries
Acronis AG
Acronis AG	First Lien Secured Debt	7.43% (1M L+585, 1.50% Floor)	12/18/24	$	21,000	$	20,901	$	20,217	(9)(17)
American Megatrends
AMI US Holdings Inc.	First Lien Secured Debt	6.83% (1M L+525, 1.00% Floor)	04/01/25	21,872		21,507		21,216		(9)
	First Lien Secured Debt - Revolver	6.25% (1M L+525)	04/01/24	1,395		1,395		1,351		(9)(23)
	First Lien Secured Debt - Revolver	6.32% (6M L+525)	04/01/24	698		698		675		(9)(23)
	First Lien Secured Debt - Revolver	6.83% (1M L+525)	04/01/24	581		581		563		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/01/24	233		(46)		(7)		(8)(9) (21)(23)
						24,135		23,798
Calero Holdings, Inc.
Telesoft Holdings, LLC	First Lien Secured Debt	7.20% (3M L+575, 1.00% Floor)	12/16/25	22,727		22,240		21,723
	First Lien Secured Debt - Revolver	6.75% (1M L+575, 1.00% Floor)	12/16/25	1,515		1,515		1,448		(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/16/25	758		(49)		(33)		(8)(21) (23)
						23,706		23,138

See notes to financial statements.

49

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)	Fair Value (1)(29)
ChargePoint
ChargePoint, Inc.	First Lien Secured Debt	8.13% (1M L+655, 1.25% Floor)	06/01/23	10,500		10,432	10,321	(9)
ChyronHego Corporation
ChyronHego Corporation	First Lien Secured Debt	7.43% (P+468)	3/9/20	3,725		3,725	3,650	(27)
	First Lien Secured Debt	7.43% (P+468)	3/9/20	34,579		34,382	29,738	(18)(27)
	First Lien Secured Debt	5.54% (1M L+390, 1.00% Floor)	3/9/20	34,753		30,630	31,625	(27)
	First Lien Secured Debt - Revolver	5.54% (1M L+390, 1.00% Floor)	3/9/20	5,050		5,050	4,848	(23)(27)
	First Lien Secured Debt - Unfunded Revolver	0.375% Unfunded	3/9/20	700		(678)	(28)	(8)(21) (23)(27)
						73,109	69,833
Digital Reasoning
Digital Reasoning Systems, Inc.	First Lien Secured Debt	8.25% (1M L+625, 2.00% Floor)	08/01/24	3,750		3,721	3,630	(9)
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	08/01/24	1,250		(11)	(40)	(8)(9) (21)(23)
	Warrants	N/A	N/A	48,596 Shares		—	48	(9)(13)
						3,710	3,638
FiscalNote
FiscalNote, Inc.	First Lien Secured Debt	9.00% (1M L+800, 1.00% Floor)	08/21/23	28,431		27,905	27,075	(9)
	First Lien Secured Debt - Revolver	9.00% (1M L+800, 1.00% Floor)	08/21/23	3,867		3,867	3,654	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/21/23	2,508		(79)	(138)	(8)(9) (21)(23)
	Preferred Equity - Series F Preferred Stock	N/A	N/A	259,565 Shares		1,500	1,500	(9)(13)
						33,193	32,091
GoHealth
Norvax, LLC	First Lien Secured Debt	7.96% (3M L+650, 1.00% Floor)	09/15/25	31,659		30,939	30,222	(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/13/24	3,182		(71)	(129)	(8)(9) (21)(23)
						30,868	30,093
International Cruise & Excursion Gallery, Inc.
International Cruise & Excursion Gallery, Inc.	First Lien Secured Debt	6.32% (3M L+525, 1.00% Floor)	06/06/25	14,737		14,517	13,439
LabVantage Solutions
LabVantage Solutions Inc.	First Lien Secured Debt	9.15% (1M L+750, 1.00% Floor)	12/29/20	10,324		10,274	10,221
LabVantage Solutions Limited	First Lien Secured Debt	8.50% (1M E+750, 1.00% Floor)	12/29/20	€	10,513	11,262	11,420	(17)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/29/20	€	3,435	(11)	(38)	(8)(17) (21)(23)
						21,525	21,603
Magnitude Software
New Amsterdam Software BidCo LLC	First Lien Secured Debt	5.00% (3M E+500, 1.00% Floor)	05/01/26	€	743	819	783	(9)
	First Lien Secured Debt	6.77% (3M L+500, 1.00% Floor)	05/01/26	6,865		6,745	6,590	(9)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	05/01/26	2,250		(20)	(90)	(8)(9) (21)(23)
						7,544	7,283

See notes to financial statements.

50

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)	Cost (28)	Fair Value (1)(29)
MYCOM
Magnate Holding Corp.	First Lien Secured Debt	7.32% (6M L+625, 1.00% Floor)	12/16/24	16,587	16,392	10,597	(9)(17)
	First Lien Secured Debt - Revolver	7.32% (6M L+625, 1.00% Floor)	12/14/23	1,025	1,025	655	(9)(17) (23)
	First Lien Secured Debt - Revolver	7.23% (6M L+625, 1.00% Floor)	12/14/23	999	999	638	(9)(17) (23)
	First Lien Secured Debt - Revolver	7.90% (3M L+625, 1.00% Floor)	12/14/23	666	666	426	(9)(17) (23)
	First Lien Secured Debt - Unfunded Revolver	1.75% Unfunded	12/14/23	500	(37)	(181)	(8)(9) (17)(21) (23)
	First Lien Secured Debt - Letter of Credit	5.00%	04/22/20	140	—	(50)	(8)(9) (17)(23)
					19,045	12,085
Omnitracs, LLC
Omnitracs, LLC	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/23/23	3,750	(201)	(375)	(8)(21) (23)
Schlesinger Group
Schlesinger Global, LLC	First Lien Secured Debt	7.45% (3M L+600, 1.00% Floor)	07/12/25	8,984	8,764	8,764	(9)
	First Lien Secured Debt	7.00% (1M L+600, 1.00% Floor)	07/12/25	154	151	151	(9)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	07/12/25	846	(10)	(21)	(8)(9) (21)(23)
					8,905	8,894
Simeio
Simeio Group Holdings, Inc.	First Lien Secured Debt	7.53% (3M L+575, 1.00% Floor)	01/30/26	8,654	8,528	8,528	(9)
	First Lien Secured Debt - Revolver	7.20% (3M L+575, 1.00% Floor)	01/30/26	577	577	568	(9)(23)
	First Lien Secured Debt - Revolver	8.00% (P+475)	01/30/26	577	577	568	(9)(23)
	First Lien Secured Debt - Revolver	6.80% (3M L+575, 1.00% Floor)	01/30/26	577	552	568	(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.75% Unfunded	01/30/26	4,615	(34)	(69)	(8)(9) (21)(23)
					10,200	10,163
Sirsi Corporation
Sirsi Corporation	First Lien Secured Debt	5.75% (1M L+475, 1.00% Floor)	03/15/24	6,895	6,813	6,722	(9)
	First Lien Secured Debt - Revolver	5.75% (1M L+475, 1.00% Floor)	03/15/24	43	43	42	(9)(23)
	First Lien Secured Debt - Revolver	7.00% (P+375)	03/15/24	43	43	42	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/15/24	343	(5)	(9)	(8)(9) (21)(23)
					6,894	6,797
Springbrook
Springbrook Holding Company, LLC	First Lien Secured Debt	7.20% (3M L+575, 1.00% Floor)	12/23/26	9,853	9,691	9,656
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/23/26	1,463	(25)	(29)	(8)(21) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	12/23/26	3,658	(34)	(73)	(8)(21) (23)
					9,632	9,554
Telestream Holdings Corporation
Telestream Holdings Corporation	First Lien Secured Debt	7.61% (3M L +645, 1.00% Floor)	03/24/22	38,085	37,891	36,942	(18)

See notes to financial statements.

51

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
ZPower, LLC
ZPower, LLC	First Lien Secured Debt	L+600	07/01/22	6,716		6,853		2,066		(9)(13) (14)
	Warrants	N/A	N/A	29,630 Shares		48		—		(9)(13)
						6,901		2,066
Total High Tech Industries						$	362,907	$	341,580
Hotel, Gaming, Leisure, Restaurants
Garden Fresh
GFRC Holdings LLC	First Lien Secured Debt	L+800 Cash (L+800 PIK Toggle)	02/01/22	$	2,500	$	2,500	$	2,425	(13)(14)
Total Hotel, Gaming, Leisure, Restaurants						$	2,500	$	2,425
Insurance
PGM Holdings Corporation
Turbo Buyer, Inc.	First Lien Secured Debt	7.52% (1M L+600, 1.00% Floor)	12/02/25	11,942		11,660		11,524		(9)
	First Lien Secured Debt - Revolver	7.00% (6M L+600, 1.00% Floor)	12/02/25	923		901		891		(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	12/02/25	2,105		(25)		(74)		(8)(9) (21)(23)
						12,536		12,341
PIB Group
Ivy Finco Limited	First Lien Secured Debt	5.27% (1M GBPL+500)	06/07/25	£	12,131	$	15,103	$	14,154	(9)(17)
	First Lien Secured Debt	5.73% (1M GBPL+500)	06/07/25	£	2,657	3,348		3,100		(9)(17)
	First Lien Secured Debt - Unfunded Delayed Draw	1.50% Unfunded	06/07/25	£	2,712	(131)		(198)		(8)(9) (17)(21) (23)
						18,320		17,056
Relation Insurance
AQ Sunshine, Inc.	First Lien Secured Debt	7.42% (6M L+550, 1.00% Floor)	04/15/25	$	17,008	16,773		16,354		(9)
	First Lien Secured Debt - Revolver	7.42% (6M L+550, 1.00% Floor)	04/15/24	588		588		569		(9)(23)
	First Lien Secured Debt - Revolver	6.57% (3M L+550, 1.00% Floor)	04/15/24	471		471		455		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/15/24	79		(19)		(3)		(8)(9) (21)(23)
	First Lien Secured Debt - Letter of Credit	5.50%	04/30/20	38		—		(1)		(8)(9) (23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	04/15/25	1,694		(79)		(65)		(8)(9) (21)(23)
						17,734		17,309
Risk Strategies
RSC Acquisition , Inc.	First Lien Secured Debt	7.28% (3M L+550, 1.00% Floor)	11/02/26	16,121		15,832		15,468		(17)
	First Lien Secured Debt	6.95% (3M L+550, 1.00% Floor)	11/02/26	1,003		1,010		962		(17)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/02/26	494		(9)		(20)		(8)(17) (21)(23)
	First Lien Secured Debt - Letter of Credit	5.50%	04/07/20	5		—		—		(17)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	11/02/26	2,714		(86)		(110)		(8)(17) (21)(23)
						16,747		16,300
Total Insurance						$	65,337	$	63,006
Manufacturing, Capital Equipment
AVAD, LLC
AVAD Canada Ltd.	First Lien Secured Debt - Revolver	5.58% (1M L+400, 1.00% Floor)	10/02/23	$	534	$	534	$	511	(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	10/02/23	800		(14)		(35)		(8)(9) (21)(23)

See notes to financial statements.

52

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
AVAD, LLC	First Lien Secured Debt	9.33% (1M L+775, 1.00% Floor)	10/02/23	8,587		8,464		8,231		(9)
	First Lien Secured Debt - Revolver	5.58% (1M L+400, 1.00% Floor)	10/02/23	10,086		10,086		9,649		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	10/02/23	8,580		(219)		(372)		(8)(9) (21)(23)
						18,851		17,984
Kauffman
Kauffman Holdco, LLC	Common Equity/Interests - Class A Units	N/A	N/A	250,000 Shares		250		187		(9)(13)
Kauffman Intermediate, LLC	First Lien Secured Debt	7.20% (3M L+575, 1.00% Floor)	05/08/25	16,839		16,552		16,275		(9)
	First Lien Secured Debt - Revolver	6.97% (3M L+575, 1.00% Floor)	05/08/25	1,243		1,243		1,199		(9)(23)
	First Lien Secured Debt - Revolver	7.50% (3M L+575, 1.00% Floor)	05/08/25	233		233		225		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	05/08/25	932		(44)		(33)		(8)(9) (21)(23)
	First Lien Secured Debt - Letter of Credit	5.75%	07/25/20	155		—		(6)		(8)(9) (23)
						18,234		17,847
MedPlast Holdings Inc.
MedPlast Holdings Inc.	Second Lien Secured Debt	9.20% (3M L+775)	07/02/26	8,000		7,937		7,538
Total Manufacturing, Capital Equipment						$	45,022	$	43,369
Media – Diversified & Production
New Wave Entertainment
NW Entertainment, Inc.	First Lien Secured Debt	8.00% (1M L+700, 1.00% Floor)	08/16/24	$	23,700	$	23,285	$	22,738	(9)
	First Lien Secured Debt - Revolver	8.00% (1M L+700, 1.00% Floor)	08/16/24	2,400		2,400		2,297		(9)(23)
	First Lien Secured Debt - Revolver	8.36% (1M L+700, 1.00% Floor)	08/16/24	600		548		574		(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	08/16/24	3,000		(52)		(122)		(8)(9) (21)(23)
						26,181		25,487
Nitro World Entertainment
NWE OPCO LP	First Lien Secured Debt	8.50% (1M L+650, 2.00% Floor)	12/19/22	5,000		4,977		4,755		(9)
Sonar Entertainment
Sonar Entertainment, Inc.	First Lien Secured Debt	9.18% (1M L+760, 1.25% Floor)	11/15/21	8,058		7,981		7,917		(9)
	First Lien Secured Debt - Revolver	9.18% (1M L+760, 1.25% Floor)	11/15/21	4,097		4,097		4,025		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/15/21	18,734		(216)		(328)		(8)(9) (21)(23)
						11,862		11,614
Total Media – Diversified & Production						$	43,020	$	41,856
Metals & Mining
Magnetation, LLC
Magnetation, LLC	First Lien Secured Debt	9.91% (6M L+800 Cash (PIK Toggle))	12/31/19	$	1,213	$	581	$	—	(13)(14) (26)
Total Metals & Mining						$	581	$	—
Retail
IPS
SI Holdings, Inc.	First Lien Secured Debt	7.45% (3M L+600, 1.00% Floor)	07/25/25	$	31,641	$	31,067	$	30,420	(9)
	First Lien Secured Debt - Revolver	7.45% (3M L+600, 1.00% Floor)	07/25/24	853		853		820		(9)(23)
	First Lien Secured Debt - Revolver	7.20% (3M L+600, 1.00% Floor)	07/25/24	2,560		2,501		2,460		(9)(23)
						34,421		33,700

See notes to financial statements.

53

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
Rapid Displays
Rapid Displays Acquisition Corporation	First Lien Secured Debt	6.00% (1M L+500, 1.00% Floor)	07/01/25	440		432		423		(9)
	First Lien Secured Debt	6.76% (3M L+500, 1.00% Floor)	07/01/25	10,385		10,203		9,991		(9)
	First Lien Secured Debt	6.78% (3M L+500, 1.00% Floor)	07/01/25	577		571		555		(9)
	First Lien Secured Debt - Revolver	7.25% (P+400)	07/01/25	2,308		2,267		2,214		(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	07/01/25	1,154		(15)		(44)		(8)(9) (21)(23)
						13,458		13,139
Total Retail						$	47,879	$	46,839
Telecommunications
IPC Corporation
IPC Corporation	First Lien Secured Debt	6.78% (3M L+500, 1.00% Floor)	08/06/21	$	10,000	$	9,959	$	8,996	(9)
IPC Information Systems UK Holdings Limited	First Lien Secured Debt	8.21% (3M L+650, 1.50% Floor)	08/06/21	843		815		789		(9)(17)
	First Lien Secured Debt	8.24% (3M L+650, 1.50% Floor)	08/06/21	562		543		526		(9)(17)
						11,317		10,311
Securus Technologies Holdings, Inc.
Securus Technologies Holdings, Inc.	Second Lien Secured Debt	9.25% (1M L+825, 1.00% Floor)	11/01/25	12,878		12,788		10,817
Total Telecommunications						$	24,105	$	21,128
Transportation – Cargo, Distribution
Dynamic Product Tankers (Prime), LLC
Dynamic Product Tankers, LLC (5)	First Lien Secured Debt	8.94% (3M L+700)	06/30/23	$	42,000	$	41,870	$	42,000	(17)
	First Lien Secured Debt - Letters of Credit	2.25%	09/20/20 - 03/31/21	6,050		—		—		(17)(23)
	Common Equity/Interests - Class A Units	N/A	N/A	N/A		49,806		36,457		(13)(17) (24)
						91,676		78,457
Heniff and Superior
Heniff Holdco, LLC	First Lien Secured Debt	7.25% (1M L+575, 1.00% Floor)	12/03/26	31,075		30,477		29,611		(9)
	First Lien Secured Debt - Revolver	6.75% (1M L+575, 1.00% Floor)	12/03/24	327		327		315		(9)(23)
	First Lien Secured Debt - Revolver	7.25% (1M L+575, 1.00% Floor)	12/03/24	327		327		315		(9)(23)
	First Lien Secured Debt - Revolver	6.80% (3M L+575, 1.00% Floor)	12/03/24	981		981		944		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/03/24	2,290		(73)		(87)		(8)(9) (21)(23)
						32,039		31,098
MSEA Tankers LLC
MSEA Tankers LLC (5)	Common Equity/Interests - Class A Units	N/A	N/A	N/A		61,950		59,735		(17)(25)
Total Transportation – Cargo, Distribution						$	185,665	$	169,290

See notes to financial statements.

54

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
Wholesale
Banner Solutions
Banner Buyer, LLC	First Lien Secured Debt	6.75% (1M L+575, 1.00% Floor)	10/31/25	$	12,549	$	12,345	$	11,915	(9)
	First Lien Secured Debt - Revolver	6.75% (1M L+575, 1.00% Floor)	10/31/25	1,548		1,548		1,469		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	10/31/25	387		(32)		(20)		(8)(9) (21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.75% Unfunded	10/31/25	5,484		(45)		(277)		(8)(9) (21)(23)
Banner Parent Holdings, Inc	Common Equity/Interests - Common Stock	N/A	N/A	5,000 Shares		500		331		(9)(13)
Total Wholesale						$	14,316	$	13,418
Total Investments before Cash Equivalents						$	3,089,613	$	2,785,433
J.P. Morgan U.S. Government Money Market Fund				$	37,301	$	37,301	$	37,301	(22)
Total Investments after Cash Equivalents						$	3,126,914	$	2,822,734	(6)(7)

____________________

(1)Fair value is determined in good faith by or under the direction of the Board of Directors of the Company (See Note 2 to the financial statements).

(2)Preferred and ordinary shares in Solarplicity UK Holdings Limited are GBP denominated equity investments.

(3)Denotes investments in which the Company owns greater than 25% of the equity, where the governing documents of each entity preclude the Company from exercising a controlling influence over the management or policies of such entity. The Company does not have the right to elect or appoint more than 25% of the directors or another party has the right to elect or appoint more directors than the Company and has the right to appoint certain members of senior management. Therefore, the Company has determined that these entities are not controlled affiliates. As of March 31, 2020, we had a 100% equity ownership interest in Golden Bear 2016-R, LLC.

See notes to financial statements.

55

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

(4)Denotes investments in which we are an “Affiliated Person,” as defined in the 1940 Act, due to holding the power to vote or owning 5% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of March 31, 2019 and March 31, 2020 along with transactions during the year ended March 31, 2020 in these affiliated investments are as follows:

Name of Issuer	Fair Value at March 31, 2019		Gross Additions ●		Gross Reductions ■		Net Change in Unrealized Gains (Losses)		Fair Value at March 31, 2020		Net Realized Gains (Losses)		Interest/Dividend/Other Income
AIC SPV Holdings II, LLC, Preferred Stock	$	440	$	—	$	—	$	2	$	442	$	—	$	94
AMP Solar Group, Inc., Class A Common Unit	6,236		—		—		2,500		8,736		—		—
Carbonfree Caustic SPE LLC, Term Loan	—		13,111		—		—		13,111		—		524
Carbonfree Chemicals SA LLC, Class B Units	—		15,403		—		(15,403)		—		—		—
Carbonfree Chemicals Holdings LLC, Common Equity / Interest	—		30,886		—		(15,781)		15,105		—		—
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC), Term Loan	—		17,057		—		(12,668)		4,389		—		318
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC), Unamortized Fee	—		—		—		—		—		—		—
Golden Bear 2016-R, LLC, Membership Interests	12,936		83		—		(3,271)		9,748		—		1,192
Pelican Energy, LLC, Membership Interests	5,320		—		(1,553)		(1,356)		2,411		—		—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series B Preferred Stock	14,573		—		—		(11,289)		3,284		—		—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series D Preferred Stock	5,890		—		—		(3,789)		2,101		—		—
Renew JV LLC, Membership Interests	2,296		4,216		(5,118)		(480)		914		2,800		—
SquareTwo Financial Corp. (CA Holdings, Collect America, Ltd.)	—		—		—		—		—		1,209		—
Solarplicity Group Limited, First Lien Term Loan	1,990		—		(5,811)		3,821		—		(4,740)		—
	$	49,681	$	80,756	$	(12,482)	$	(57,714)	$	60,241	$	(731)	$	2,128

____________________

● Gross additions includes increases in the basis of investments resulting from new portfolio investments, payment-in-kind interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

■ Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the amortization of premiums, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.

See notes to financial statements.

56

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

(5)Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Fair value as of March 31, 2019 and March 31, 2020 along with transactions during the year ended March 31, 2020 in these controlled investments are as follows:

Name of Issuer	Fair Value at March 31, 2019		Gross Additions ●		Gross Reductions ■		Net Change in Unrealized Gains (Losses)		Fair Value at March 31, 2020		Net Realized Gains (Losses)		Interest/Dividend/Other Income
Dynamic Product Tankers, LLC, Class A Units	$	36,879	$	—	$	—	$	(422)	$	36,457	$	—	$	—
Dynamic Product Tankers, LLC, First Lien Term Loan	42,000		40		—		(40)		42,000		—		3,969
Dynamic Product Tankers, LLC, Letters of Credit	—		—		—		—		—		—		—
Dynamic Product Tankers, LLC, Letters of Credit	—		—		—		—		—		—		—
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Second Lien Term Loan	33,705		3,222		—		(22,216)		14,711		—		3,221
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), First Lien Term Loan	9,000		—		(9,000)		—		—		—		416
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Common Stock	3,346		—		—		(3,346)		—		—		—
Merx Aviation Finance, LLC, Membership Interests	54,281		—		—		(25,834)		28,447		—		2,500
Merx Aviation Finance, LLC, Revolver	371,200		13,100		(79,000)		—		305,300		—		38,679
Merx Aviation Finance, LLC, Letters of Credit	—		—		—		—		—		—		—
MSEA Tankers LLC, Class A Units	73,369		—		(12,500)		(1,135)		59,735		—		4,649
SHD Oil & Gas, LLC, Series A Units	—		—		—		—		—		—		—
SHD Oil & Gas, LLC, Tranche A Note	46,821		—		(460)		(23,866)		22,495		—		1,400
SHD Oil & Gas, LLC, Tranche B Note	39,432		—		—		(39,432)		—		—		—
SHD Oil & Gas, LLC, Tranche C Note	21,012		3,600		—		108		24,720		—		2,741
	$	731,045	$	19,962	$	(100,960)	$	(116,183)	$	533,865	$	—	$	57,575

____________________

● Gross additions includes increases in the basis of investments resulting from new portfolio investments, payment-in-kind interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

■ Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the amortization of premiums, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.

    As of March 31, 2020, the Company had a 85%, 47%, 100%, 98% and 38% equity ownership interest in Dynamic Product Tankers, LLC; Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.); Merx Aviation Finance, LLC; MSEA Tankers, LLC; and SHD Oil & Gas, LLC (f/k/a Spotted Hawk Development LLC), respectively.

See notes to financial statements.

57

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

(6)Aggregate gross unrealized gain and loss for federal income tax purposes is $49,776 and $405,396, respectively. Net unrealized loss is $355,620 based on a tax cost of $3,178,354.

(7)Substantially all securities are pledged as collateral to our multi-currency revolving credit facility (the “Senior Secured Facility” as defined in Note 6 to the financial statements). As such, these securities are not available as collateral to our general creditors.

(8)The negative fair value is the result of the commitment being valued below par.

(9)These are co-investments made with the Company’s affiliates in accordance with the terms of the exemptive order the Company received from the Securities and Exchange Commission (the “SEC”) permitting us to do so. (See Note 3 to the financial statements for discussion of the exemptive order from the SEC.)

(10)Other than the investments noted by this footnote, the fair value of the Company’s investments is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 2 to the financial statements for more information regarding ASC 820, Fair Value Measurements (“ASC 820”).

(11)The unused line fees of 0.25% are collected for the Unfunded Revolver, respectively from both Altasciences US Acquisition, Inc. and Altasciences/9360-1367 Quebec Inc. as each borrower has access to the respective lending facilities.

(12)Par amount is denominated in USD unless otherwise noted, Euro (“€”), British Pound (“£”), Canadian Dollar (“C$”), and Australian Dollar (“A$”) .

(13)Non-income producing security.

(14)Non-accrual status (See Note 2 to the financial statements).

(15)The underlying investments of AIC SPV Holdings II, LLC is a securitization in which the Company has a 14.25% ownership interest in the residual tranche.

(16)AIC Spotted Hawk Holdings, LLC, AIC SHD Holdings, LLC and AIC Pelican Holdings, LLC are consolidated wholly-owned special purpose vehicles which only hold equity investments of the underlying portfolio companies and have no other significant assets or liabilities. AIC Spotted Hawk Holdings, LLC and AIC SHD Holdings, LLC hold equity investments in SHD Oil & Gas, LLC. AIC Pelican Holdings, LLC holds an equity investment in Pelican Energy, LLC.

(17)Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis. As of March 31, 2020, non-qualifying assets represented approximately 17.23% of the total assets of the Company.

(18)In addition to the interest earned based on the stated rate of this loan, the Company may be entitled to receive additional interest as a result of its arrangement with other lenders in a syndication.

(19)The Company holds some warrants for this investment as part of the restructuring of the underlying portfolio company.  The warrants have no cost and no fair value as of March 31, 2020.

(20)Generally, the interest rate on floating interest rate investments is at benchmark rate plus spread. The borrower has an option to choose the benchmark rate, such as the London Interbank Offered Rate (“LIBOR”), the Euro Interbank Offered Rate (“EURIBOR”), the federal funds rate or the prime rate. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates (1M L, 2M L, 3M L or 6M L, respectively), EURIBOR loans are typically indexed to 90-day EURIBOR rates (3M E), Bank Bill Swap rates are typically index to 90-day Bank Bill Swap rates (3M BBSW), GBP LIBOR loans are typically indexed to 90-day GBP LIBOR rates (3M GBP L) and EUR LIBOR loans are typically indexed to 90-day EUR LIBOR rates (3M E L) at the borrower’s option. LIBOR and EURIBOR loans may be subject to interest floors. As of March 31, 2020, rates for 1M L, 2M L, 3M L, 6M L, 1M E, 3M E, 3M BBSW, 3M GBP L, 3M E L and Prime are 0.99%, 1.26%, 1.45%, 1.18%, (0.42%), (0.36%), 0.42%, 0.59%, (0.25%) and 3.25%, respectively.

(21)The rates associated with these undrawn committed revolvers and delayed draw term loans represent rates for commitment and unused fees.

(22)This security is included in the Cash and Cash Equivalents on the Statements of Assets and Liabilities.

See notes to financial statements.

58

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

(23)As of March 31, 2020, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 8 to the financial statements for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies.

Portfolio Company	Total Commitment		Drawn Commitment		Letters of Credit		Undrawn Commitment
A&V Holdings Midco, LLC	$	1,505	$	903	$	—	$	602
Altasciences US Acquistion, Inc.	1,425		1,418		—		7
Amerivet Partners Management, Inc.	8,454		524		—		7,930
AMI US Holdings Inc.	2,907		2,674		—		233
Analogic Corporation	1,827		157		—		1,670
AQ Sunshine, Inc.	2,870		1,059		38		1,773
Arlington Industries Group Limited*	4,960		—		—		4,960
AVAD Canada Ltd.	1,334		534		—		800
AVAD, LLC	18,666		10,086		—		8,580
AVG Intermediate Holdings LLC	1,466		—		—		1,466
Banner Buyer, LLC	7,419		1,548		—		5,871
BIG Buyer, LLC	1,805		722		—		1,083
BK Medical Holding Company, Inc.	783		—		—		783
Cerus Corporation	9,500		187		—		9,313
ChyronHego Corporation	5,750		5,050		—		700
Claritas, LLC	1,032		748		—		284
Compu-Link Corporation	2,272		2,272		—		—
Continuum Global Solutions, LLC	20,000		8,791		—		11,209
Digital Reasoning Systems, Inc.	1,250		—		—		1,250
Dispatch Acquisition Holdings, LLC	8,659		1,462		—		7,197
Dynamic Product Tankers, LLC	6,050		—		6,050		—
Eagle Foods Family Group, LLC	3,751		1,334		—		2,417
Education Personnel*	1,823		1,823		—		—
EHL Merger Sub, LLC	4,155		1,662		—		2,493
Eldrickco Limited*	5,377		428		—		4,949
Erickson Inc	40,500		31,812		1,263		7,425
Exeter Property Group, LLC	192		—		—		192
First Heritage Credit, LLC	11,550		517		—		11,033
FiscalNote, Inc.	6,375		3,867		—		2,508
Flock SPV I, LLC	6,933		—		—		6,933
Florida Food Products, LLC	1,713		1,713		—		—
FPG Services, LLC	7,368		2,105		—		5,263
GB001, Inc.	24,000		—		—		24,000
Genesis Healthcare, Inc.	60,870		14,069		—		46,801
Gutter Buyer, Inc.	4,772		2,727		—		2,045
Heniff Holdco, LLC	3,925		1,635		—		2,290
HSI Halo Acquisition, Inc.	4,590		2,049		—		2,541
IM Acquirer LLC	289		289		—		—
Ivy Finco Limited*	3,363		—		—		3,363
Jacent Strategic Merchandising	3,500		3,500		—		—
JF Acquisition, LLC	1,569		1,569		—		—
Kauffman Intermediate, LLC	2,563		1,476		155		932
KDC US Holdings*	6,023		5,731		78		214
Kure Pain Holdings, Inc.	2,654		2,654		—		—
LabVantage Solutions Limited*	3,769		—		—		3,769
Lifelong Learner Holdings, LLC	5,374		2,389		—		2,985

See notes to financial statements.

59

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Portfolio Company	Total Commitment	Drawn Commitment	Letters of Credit	Undrawn Commitment
Lion Cashmere Midco Limited*	3,903	1,301	—	2,602
Liqui-Box Holdings, Inc.*	3,563	3,085	77	401
Magnate Holding Corp.	3,330	2,690	140	500
Mannkind Corporation	12,133	—	—	12,133
Margaux Acquisition Inc.	6,062	1,601	—	4,461
Margaux UK Finance Limited*	2,350	667	—	1,683
Marlin DTC-LS Midco 2, LLC	685	—	—	685
Maxor National Pharmacy Services, LLC	1,558	779	—	779
Medical Guardian, LLC	5,714	381	—	5,333
Merx Aviation Finance, LLC	305,477	305,300	177	—
Nemo (BC) Bidco Pty Ltd*	142	—	—	142
New Amsterdam Software BidCo LLC*	2,250	—	—	2,250
Newscycle Solutions, Inc.	500	500	—	—
Norvax, LLC	3,182	—	—	3,182
NW Entertainment, Inc.	6,000	3,000	—	3,000
Olaplex, Inc.	3,800	3,800	—	—
Omnitracs, LLC	3,750	—	—	3,750
Orchard Therapeutics plc	16,667	—	—	16,667
Ortega National Parks, LLC	8,251	2,049	—	6,202
Pace Health Companies, LLC	4,451	433	68	3,950
Paper Source, Inc.	3,081	3,081	—	—
PHS Buyer, Inc.	2,000	—	—	2,000
PrimeFlight Aviation Services, Inc.	2,842	—	—	2,842
Project Comfort Buyer, Inc.	5,769	—	—	5,769
ProPharma Group Intermediate, LLC*	1,032	1,032	—	—
Protein For Pets Opco, LLC	2,219	444	—	1,775
Purchasing Power Funding I, LLC	9,112	4,608	—	4,504
RA Outdoors, LLC	1,200	—	—	1,200
Radius Health, Inc.	15,500	—	—	15,500
Rapid Displays Acquisition Corporation	3,462	2,308	—	1,154
Rigel Pharmaceuticals, Inc.	3,000	—	—	3,000
RiteDose Holdings I, Inc.	2,000	—	—	2,000
Royton Bidco Limited*	4,413	—	—	4,413
RSC Acquisition , Inc.	3,213	—	5	3,208
Schlesinger Global, LLC	846	—	—	846
SI Holdings, Inc.	3,413	3,413	—	—
Simeio Group Holdings, Inc.	6,346	1,731	—	4,615
Simplifi Holdings, Inc.	8,491	1,200	—	7,291
Sirsi Corporation	429	86	—	343
Soliant Holdings, LLC	1,937	323	—	1,614
Sonar Entertainment, Inc.	22,831	4,097	—	18,734
Springbrook Holding Company, LLC	5,121	—	—	5,121
SSCP Spring Bidco Limited*	1,358	—	—	1,358
Teladoc, Inc.	1,666	—	360	1,306
Telesoft Holdings, LLC	2,273	1,515	—	758
Ten-X, LLC	4,680	4,680	—	—
TGG TS Acquisition Company	1,750	500	—	1,250
The Emmes Company, LLC	2,449	2,449	—	—
THLP CO. LLC	10,112	2,247	—	7,865
Tidewater Consumer Receivables, LLC	1,667	1,537	—	130

See notes to financial statements.

60

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Portfolio Company	Total Commitment		Drawn Commitment		Letters of Credit		Undrawn Commitment
TNT Crust LLC	4,228		748		—		3,480
TricorBraun Holdings, Inc.	5,625		5,250		—		375
Truck-Lite Co., LLC	6,759		1,962		85		4,712
Turbo Buyer, Inc.	3,028		923		—		2,105
U.S. Auto Finance, Inc.	20,000		3,052		—		16,948
USLS Acquisition, Inc.	1,608		1,522		86		—
Vertafore, Inc.	15,000		—		424		14,576
Westfall Technik, Inc.	14,849		2,020		—		12,829
Wildcat BuyerCo, Inc.	3,913		—		8		3,905
Wright Medical Group, Inc.	70,000		7,666		—		62,334
Total Commitments	$	999,922	$	505,464	$	9,014	$	485,444

____________________

* These investments are in a foreign currency and the total commitment has been converted to USD using the March 31, 2020 exchange rate.

(24)As of March 31, 2020, Dynamic Product Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-3 units which are identical except that Class A-1 unit is voting and Class A-3 unit is non-voting. The units entitle the Company to appoint three out of five managers to the board of managers.

(25)As of March 31, 2020, MSEA Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-2 units which are identical except that Class A-1 unit is voting and Class A-2 unit is non-voting. The units entitle the Company to appoint two out of three managers to the board of managers.

(26)This investment has matured but is still held for any potential future cash proceeds. No value has been attributed to these future recoveries.

(27)The maturity date for these investments are expected to be extended past March 31, 2020. The final terms of the extension are still under negotiation between the Company and the respective portfolio company.

See notes to financial statements.

61

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

(28)The following shows the composition of the Company’s portfolio at cost by control designation, investment type and industry as of March 31, 2020:

Industry	First Lien - Secured Debt		Second Lien - Secured Debt		Unsecured Debt		Structured Products and Other		Preferred Equity		Common Equity/Interests		Warrants		Total
Non-Controlled / Non-Affiliated Investments
Advertising, Printing & Publishing	$	39,282	$	5,503	$	—	$	—	$	—	$	—	$	—	$	44,785
Aerospace & Defense	31,579		13,462		—		—		—		—		—		45,041
Automotive	41,171		23,489		—		—		—		2,064		—		66,724
Aviation and Consumer Transport	14,461		—		—		—		—		—		—		14,461
Beverage, Food & Tobacco	96,973		—		—		—		—		2,199				99,172
Business Services	223,967		150,982		—		—		78		1,432		—		376,459
Chemicals, Plastics & Rubber	17,576		14,506		—		—		—		—		—		32,082
Construction & Building	29,111		—		—		—		—		500		—		29,611
Consumer Goods – Durable	66,367		21,693		—		—		462		100		—		88,622
Consumer Goods – Non-Durable	79,004		12,882		—		—		—		—		—		91,886
Consumer Services	104,237		24,842		—		—		—		—		—		129,079
Containers, Packaging & Glass	5,081		—		—		—		—		—		—		5,081
Diversified Investment Vehicles, Banking, Finance, Real Estate	64,420		—		—		—		—		—		—		64,420
Education	34,595		—				—		—		—		—		34,595
Energy – Electricity	7,637		—		—		—		5,861		4		—		13,502
Environmental Industries	30,764		—		—				—		—		—		30,764
Food & Grocery	15,319		—		—		—		—		—		—		15,319
Healthcare & Pharmaceuticals	416,793		60,914		—		—		333		1,064		135		479,239
High Tech Industries	361,359		—		—		—		1,500		—		48		362,907
Hotel, Gaming, Leisure, Restaurants	2,500		—		—		—		—		—		—		2,500
Insurance	65,337		—		—		—		—		—		—		65,337
Manufacturing, Capital Equipment	36,835		7,937		—		—		—		250		—		45,022
Media – Diversified & Production	43,020		—		—		—		—		—		—		43,020
Metals & Mining	581		—		—		—		—		—		—		581
Retail	47,879		—		—		—		—		—		—		47,879
Telecommunications	11,317		12,788		—		—		—		—		—		24,105
Transportation – Cargo, Distribution	32,039		—		—		—		—		—		—		32,039
Wholesale	13,816		—		—		—		—		500		—		14,316
Total Non-Controlled / Non-Affiliated Investments	$	1,933,020	$	348,998	$	—	$	—	$	8,234	$	8,113	$	183	$	2,298,548
Non-Controlled / Affiliated Investments
Chemicals, Plastics & Rubber	$	30,168	$	—	$	—	$	—	$	—	$	46,289	$	—	$	76,457
Diversified Investment Vehicles, Banking, Finance, Real Estate	—		—		—		16,729		—		—		—		16,729
Energy – Electricity	—		—		—		—		14,445		10,893		—		25,338
Energy – Oil & Gas	—		—		—		—		—		16,822		—		16,822
Total Non-Controlled / Affiliated Investments	$	30,168	$	—	$	—	$	16,729	$	14,445	$	74,004	$	—	$	135,346
Controlled Investments
Aviation and Consumer Transport	$	305,300	$	—	$	—	$	—	$	—	$	15,000	$	—	$	320,300
Energy – Oil & Gas	113,378		36,926		—		—		—		31,489		—		181,793
Transportation – Cargo, Distribution	41,870		—		—		—		—		111,756		—		153,626
Total Controlled Investments	$	460,548	$	36,926	$	—	$	—	$	—	$	158,245	$	—	$	655,719
Total	$	2,423,736	$	385,924	$	—	$	16,729	$	22,679	$	240,362	$	183	$	3,089,613

See notes to financial statements.

62

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

(29) The following shows the composition of the Company’s portfolio at fair value by control designation, investment type and industry as of March 31, 2020:

Industry	First Lien - Secured Debt			Second Lien - Secured Debt			Unsecured Debt			Structured Products and Other			Preferred Equity			Common Equity/Interests			Warrants			Total			% of Net Assets
Non-Controlled / Non-Affiliated Investments
Advertising, Printing & Publishing	$	38,074		$	4,882		$	—		$	—		$	—		$	—		$	—		$	42,956		4.2	%
Aerospace & Defense	30,902			12,353			—			—			—			—			—			43,255			4.2	%
Automotive	39,513			22,220			—			—			—			491			—			62,224			6.1	%
Aviation and Consumer Transport	13,984			—			—			—			—			—			—			13,984			1.4	%
Beverage, Food & Tobacco	96,048			—			—			—			—			2,368			—			98,416			9.6	%
Business Services	217,036			142,390			—			—			78			1,127			—			360,631			35.2	%
Chemicals, Plastics & Rubber	17,094			14,671			—			—			—			—			—			31,765			3.1	%
Construction & Building	28,415			—			—			—			—			558			—			28,973			2.8	%
Consumer Goods – Durable	53,621			20,639			—			—			231			518			—			75,009			7.3	%
Consumer Goods – Non-durable	77,283			12,289			—			—			—			—			—			89,572			8.7	%
Consumer Services	99,018			24,282			—			—			—			—			—			123,300			12.0	%
Containers, Packaging & Glass	5,167			—			—			—			—			—			—			5,167			0.5	%
Diversified Investment Vehicles, Banking, Finance, Real Estate	63,371			—			—			—			—			—			—			63,371			6.2	%
Education	34,201			—			—			—			—			—			—			34,201			3.3	%
Energy – Electricity	3,787			—			—			—			—			—			—			3,787			0.4	%
Environmental Industries	29,811			—			—			—			—			—			—			29,811			2.9	%
Food & Grocery	15,222			—			—			—			—			—			—			15,222			1.5	%
Healthcare & Pharmaceuticals	406,941			56,627			—			—			332			976			88			464,964			45.4	%
High Tech Industries	340,032			—			—			—			1,500			—			48			341,580			33.4	%
Hotel, Gaming, Leisure, Restaurants	2,425			—			—			—			—			—			—			2,425			0.2	%
Insurance	63,006			—			—			—			—			—			—			63,006			6.2	%
Manufacturing, Capital Equipment	35,644			7,538			—			—			—			187			—			43,369			4.2	%
Media – Diversified & Production	41,856			—			—			—			—			—			—			41,856			4.1	%
Metals & Mining	—			—			—			—			—			—			—			—			—	%
Retail	46,839			—			—			—			—			—			—			46,839			4.6	%
Telecommunications	10,310			10,818			—			—			—			—			—			21,128			2.1	%
Transportation – Cargo, Distribution	31,098			—			—			—			—			—			—			31,098			3.0	%
Wholesale	13,087			—			—			—			—			331			—			13,418			1.3	%
Total Non-Controlled / Non-Affiliated Investments	$	1,853,785		$	328,709		$	—		$	—		$	2,141		$	6,556		$	136		$	2,191,327		213.9	%
% of Net Assets	181.0		%	32.1		%	—		%	—		%	0.2		%	0.6		%	—		%	213.9		%
Non-Controlled / Affiliated Investments
Chemicals, Plastics & Rubber	$	17,500		$	—		$	—		$	—		$	—		$	15,105		$	—		$	32,605		3.2	%
Diversified Investment Vehicles, Banking, Finance, Real Estate	—			—			—			9,748			—			—			—			9,748			1.0	%
Energy – Electricity	—			—			—			—			5,827			9,650			—			15,477			1.5	%
Energy – Oil & Gas	—			—			—			—			—			2,411			—			2,411			0.2	%
Total Non-Controlled / Affiliated Investments	$	17,500		$	—		$	—		$	9,748		$	5,827		$	27,166		$	—		$	60,241		5.9	%
% of Net Assets	1.7		%	—		%	—		%	1.0		%	0.6		%	2.6		%	—		%	5.9		%

See notes to financial statements.

63

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Controlled Investments
Aviation and Consumer Transport	$	305,300		$	—		$	—		$	—		$	—		$	28,447		$	—		$	333,747		32.6	%
Energy – Oil & Gas	47,215			14,711			—			—			—			—			—			61,926			6.0	%
Transportation – Cargo, Distribution	42,000			—			—			—			—			96,192			—			138,192			13.5	%
Total Controlled Investments	$	394,515		$	14,711		$	—		$	—		$	—		$	124,639		$	—		$	533,865		52.1	%
% of Net Assets	38.5		%	1.4		%	—		%	—		%	—		%	12.2		%	—		%	52.1		%
Total	$	2,265,800		$	343,420		$	—		$	9,748		$	7,968		$	158,361		$	136		$	2,785,433		271.9	%
% of Net Assets	221.2		%	33.5		%	—		%	1.0		%	0.8		%	15.4		%	0.0		%	271.9		%

See notes to financial statements.

64

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2020

(In thousands, except share data)

Industry Classification	Percentage of Total Investments (at Fair Value) as of March 31, 2020
Healthcare & Pharmaceuticals	16.7%
Business Services	12.9%
Aviation and Consumer Transport	12.5%
High Tech Industries	12.3%
Transportation – Cargo, Distribution	6.1%
Consumer Services	4.4%
Beverage, Food & Tobacco	3.5%
Consumer Goods – Non-durable	3.2%
Consumer Goods – Durable	2.7%
Diversified Investment Vehicles, Banking, Finance, Real Estate	2.6%
Chemicals, Plastics & Rubber	2.3%
Energy – Oil & Gas	2.3%
Insurance	2.3%
Automotive	2.2%
Retail	1.7%
Manufacturing, Capital Equipment	1.6%
Aerospace & Defense	1.6%
Advertising, Printing & Publishing	1.5%
Media – Diversified & Production	1.5%
Education	1.2%
Environmental Industries	1.1%
Construction & Building	1.0%
Telecommunications	0.8%
Energy – Electricity	0.7%
Food & Grocery	0.5%
Wholesale	0.5%
Containers, Packaging & Glass	0.2%
Hotel, Gaming, Leisure, Restaurants	0.1%
Metals & Mining	0.0%
Total Investments	100.0%

See notes to financial statements.

65

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(In thousands, except share and per share data)

Note 1. Organization

Apollo Investment Corporation (the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” or “our”), a Maryland corporation incorporated on February 2, 2004, is a closed-end, externally managed, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). In addition, for tax purposes we have elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We commenced operations on April 8, 2004 receiving net proceeds of $870,000 from our initial public offering by selling 62 million shares of common stock at a price of $15.00 per share (20.7 million shares at a price of $45.00 per share adjusted for the one-for-three reverse stock split). Since then, and through September 30, 2020, we have raised approximately $2,210,067 in net proceeds from additional offerings of common stock and repurchased common stock for $223,072.

Apollo Investment Management, L.P. (the “Investment Adviser” or “AIM”) is our investment adviser and an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“AGM”). The Investment Adviser, subject to the overall supervision of our Board of Directors, manages the day-to-day operations of and provides investment advisory services to the Company.

Apollo Investment Administration, LLC (the “Administrator” or “AIA”), an affiliate of AGM, provides, among other things, administrative services and facilities for the Company. Furthermore, AIA provides on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance.

Our investment objective is to generate current income and capital appreciation. We invest primarily in various forms of debt investments, including secured and unsecured debt, loan investments, and/or equity in private middle-market companies. We may also invest in the securities of public companies and in structured products and other investments such as collateralized loan obligations (“CLOs”) and credit-linked notes (“CLNs”). Our portfolio is comprised primarily of investments in debt, including secured and unsecured debt of private middle-market companies that, in the case of senior secured loans, generally are not broadly syndicated and whose aggregate tranche size is typically less than $250 million. Our portfolio may include equity interests such as common stock, preferred stock, warrants and/or options.

Note 2. Significant Accounting Policies

The following is a summary of the significant accounting and reporting policies used in preparing the financial statements.

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) pursuant to the requirements on Form 10-Q, ASC 946, Financial Services — Investment Companies (“ASC 946”), and Articles 6, 10 and 12 of Regulation S-X. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair statement of the financial statements for the periods presented, have been included.

Under the 1940 Act, ASC 946, and the regulations pursuant to Article 6 of Regulation S-X, we are precluded from consolidating any entity other than another investment company or an operating company which provides substantially all of its services to benefit us.

These financial statements should be read in conjunction with the audited financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended March 31, 2020.

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of income, expenses, gains and losses during the reported periods. Changes in the economic environment, financial markets, credit worthiness of our portfolio companies, the global outbreak of a novel coronavirus (COVID-19) during the first half of 2020 and any other parameters used in determining these estimates could cause actual results to differ materially.

66

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The World Health Organization has designated COVID-19 as a pandemic, and numerous countries, including the United States, have declared national emergencies with respect to COVID-19. The global impact of the outbreak has been rapidly evolving, and as cases of COVID-19 have continued to be identified in additional countries, many countries have reacted by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trading, and limiting operations of nonessential businesses. Such actions are creating disruption in global supply chains, and adversely impacting many industries. The outbreak has had and could continue to have an adverse impact on economic and market conditions and some economists, investment banks and The World Bank have indicated that current indicators point to a global recession that started in February 2020. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions. The Company believes the estimates and assumptions underlying our financial statements are reasonable and supportable based on the information available as of September 30, 2020. However uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of September 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results may ultimately differ from those estimates.

Cash and Cash Equivalents

The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and near maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less from the date of purchase would qualify, with limited exceptions. The Company deems that certain money market funds, U.S. Treasury bills, repurchase agreements, and other high-quality, short-term debt securities would qualify as cash equivalents.

Cash and cash equivalents are carried at cost which approximates fair value. Cash equivalents held as of September 30, 2020 was $25,825. Cash equivalents held as of March 31, 2020 was $37,301.

Collateral on Option Contracts

Collateral on option contracts represents restricted cash held by our counterparty as collateral against our derivative instruments until such contracts mature or are settled upon per agreement of buyer and seller of the contract. In accordance with Accounting Standards Update No. 2016-18, Statement of Cash Flows: Restricted Cash, the Statements of Cash Flows outline the changes in cash, including both restricted and unrestricted cash, cash equivalents and foreign currencies. As of September 30, 2020 and March 31, 2020 the Company did not hold any derivative contracts.

Investment Transactions

Investments are recognized when we assume an obligation to acquire a financial instrument and assume the risks for gains and losses related to that instrument. Investments are derecognized when we assume an obligation to sell a financial instrument and forego the risks for gains or losses related to that instrument. Specifically, we record all security transactions on a trade date basis. Amounts for investments recognized or derecognized but not yet settled are reported as a receivable for investments sold and a payable for investments purchased, respectively, in the Statements of Assets and Liabilities.

67

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Fair Value Measurements

The Company follows guidance in ASC 820, Fair Value Measurement (“ASC 820”), where fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are determined within a framework that establishes a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

Level 1: Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3: Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The level assigned to the investment valuations may not be indicative of the risk or liquidity associated with investing in such investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may differ materially from the values that would be received upon an actual disposition of such investments.

Investment Valuation Process

Under procedures established by our Board of Directors, we value investments, including certain secured debt, unsecured debt and other debt securities with maturities greater than 60 days, for which market quotations are readily available, at such market quotations (unless they are deemed not to represent fair value). We attempt to obtain market quotations from at least two brokers or dealers (if available, otherwise from a principal market maker, primary market dealer or other independent pricing service). We utilize mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are unavailable or are deemed not to represent fair value, we typically utilize independent third party valuation firms to assist us in determining fair value. Accordingly, such investments go through our multi-step valuation process as described below. In each case, our independent third party valuation firms consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such investments. Investments purchased within the quarter before the valuation date and debt investments with remaining maturities of 60 days or less may each be valued at cost with interest accrued or discount accreted/premium amortized to the date of maturity (although they are typically valued at available market quotations), unless such valuation, in the judgment of our Investment Adviser, does not represent fair value. In this case such investments shall be valued at fair value as determined in good faith by or under the direction of our Board of Directors including using market quotations where available. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of our Board of Directors. Such determination of fair values may involve subjective judgments and estimates.

68

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, our Board of Directors has approved a multi-step valuation process each quarter, as described below:

1.Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of our Investment Adviser who are responsible for the portfolio investment.

2.Preliminary valuation conclusions are then documented and discussed with senior management of our Investment Adviser.

3.Independent valuation firms are engaged by our Board of Directors to conduct independent appraisals by reviewing our Investment Adviser’s preliminary valuations and then making their own independent assessment.

4.The Audit Committee of the Board of Directors reviews the preliminary valuation of our Investment Adviser and the valuation prepared by the independent valuation firms and responds, if warranted, to the valuation recommendation of the independent valuation firms.

5.The Board of Directors discusses valuations and determines in good faith the fair value of each investment in our portfolio based on the input of our Investment Adviser, the applicable independent valuation firm, and the Audit Committee of the Board of Directors.

6.For Level 3 investments entered into within the current quarter, the cost (purchase price adjusted for accreted original issue discount/amortized premium) or any recent comparable trade activity on the security investment shall be considered to reasonably approximate the fair value of the investment, provided that no material change has since occurred in the issuer’s business, significant inputs or the relevant environment.

Investments determined by these valuation procedures which have a fair value of less than $1 million during the prior fiscal quarter may be valued based on inputs identified by the Investment Adviser without the necessity of obtaining valuation from an independent valuation firm, if once annually an independent valuation firm using the procedures described herein provides an independent assessment of value. Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, seniority of investment in the investee company’s capital structure, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When readily available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process. During the six months ended September 30, 2020, there were no significant changes to the Company’s valuation techniques and related inputs considered in the valuation process.

Derivative Instruments

The Company recognizes all derivative instruments as assets or liabilities at fair value in its financial statements. Derivative contracts entered into by the Company are not designated as hedging instruments, and as a result the Company presents changes in fair value and realized gains or losses through current period earnings.

Derivative instruments are measured in terms of the notional contract amount and derive their value based upon one or more underlying instruments. Derivative instruments are subject to various risks similar to non-derivative instruments including market, credit, liquidity, and operational risks. The Company manages these risks on an aggregate basis as part of its risk management process. The derivatives may require the Company to pay or receive an upfront fee or premium. These upfront fees or premiums are carried forward as cost or proceeds to the derivatives.

69

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Exchange-traded derivatives which include put and call options are valued based on the last reported sales price on the date of valuation. Over-the-counter (“OTC”) derivatives, including credit default swaps, are valued by the Investment Adviser using quotations from counterparties. In instances where models are used, the value of the OTC derivative is derived from the contractual terms of, and specific risks inherent in, the instrument as well as the availability and reliability of observable inputs, such as credit spreads.

As of September 30, 2020 and March 31, 2020, the Company did not hold any derivative contracts.

Offsetting Assets and Liabilities

The Company has elected not to offset cash collateral against the fair value of derivative contracts. The fair values of these derivatives are presented on a gross basis, even when derivatives are subject to master netting agreements.

As of September 30, 2020 and March 31, 2020, the Company did not hold any derivative contracts.

Valuation of Other Financial Assets and Financial Liabilities

ASC 825, Financial Instruments, permits an entity to choose, at specified election dates, to measure certain assets and liabilities at fair value (the “Fair Value Option”). We have not elected the Fair Value Option to report selected financial assets and financial liabilities. Debt issued by the Company is reported at amortized cost (see Note 6 to the financial statements). The carrying value of all other financial assets and liabilities approximates fair value due to their short maturities or their close proximity of the originations to the measurement date.

Realized Gains or Losses

Security transactions are accounted for on a trade date basis. Realized gains or losses on investments are calculated by using the specific identification method. Securities that have been called by the issuer are recorded at the call price on the call effective date.

Investment Income Recognition

The Company records interest and dividend income, adjusted for amortization of premium and accretion of discount, on an accrual basis. Some of our loans and other investments, including certain preferred equity investments, may have contractual payment-in-kind (“PIK”) interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point the Company believes PIK is not fully expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the related receivable through interest or dividend income, respectively. The Company does not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if the Company believes that PIK is expected to be realized.

Investments that are expected to pay regularly scheduled interest and/or dividends in cash are generally placed on non-accrual status when principal or interest/dividend cash payments are past due 30 days or more and/or when it is no longer probable that principal or interest/dividend cash payments will be collected. Such non-accrual investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining interest or dividend obligations. Interest or dividend cash payments received on non-accrual designated investments may be recognized as income or applied to principal depending upon management’s judgment.

Loan origination fees, original issue discount (“OID”), and market discounts are capitalized and accreted into interest income over the respective terms of the applicable loans using the effective interest method or straight-line, as applicable. Upon the prepayment of a loan, prepayment premiums, any unamortized loan origination fees, OID, or market discounts are recorded as interest income. Other income generally includes amendment fees, bridge fees, and structuring fees which are recorded when earned.

70

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. Such assumptions include the rate and timing of principal and interest receipts (which may be subject to prepayments and defaults) of the underlying pool of assets. These assumptions are updated on at least a quarterly basis to reflect changes related to a particular security, actual historical data, and market changes. A structured product investment typically has an underlying pool of assets. Payments on structured product investments are and will be payable solely from the cash flows from such assets. As such, any unforeseen event in these underlying pools of assets might impact the expected recovery of principal and future accrual of income.

Expenses

Expenses include management fees, performance-based incentive fees, insurance expenses, administrative service fees, legal fees, directors’ fees, audit and tax service expenses, third-party valuation fees and other general and administrative expenses. Expenses are recognized on an accrual basis.

Financing Costs

The Company records expenses related to shelf filings and applicable offering costs as deferred financing costs in the Statements of Assets and Liabilities. To the extent such expenses relate to equity offerings, these expenses are charged as a reduction of capital upon utilization, in accordance with ASC 946-20-25, or charged to expense if no offering is completed.

The Company records origination and other expenses related to its debt obligations as deferred financing costs. The deferred financing cost for all outstanding debt is presented as a direct deduction from the carrying amount of the related debt liability, except that incurred under the Senior Secured Facility (as defined in Note 6 to the financial statements), which the Company presents as an asset on the Statements of Assets and Liabilities. These expenses are deferred and amortized as part of interest expense using the straight-line method over the stated life of the obligation which approximates the effective yield method. In the event that we modify or extinguish our debt before maturity, the Company follows the guidance in ASC 470-50, Modification and Extinguishments (“ASC 470-50”). For modifications to or exchanges of our Senior Secured Facility (as defined in Note 6 to the financial statements), any unamortized deferred financing costs relating to lenders who are not part of the new lending group are expensed. For extinguishments of our senior secured notes and senior unsecured notes, any unamortized deferred financing costs are deducted from the carrying amount of the debt in determining the gain or loss from the extinguishment.

Foreign Currency Translations

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

Dividends and Distributions

Dividends and distributions to common stockholders are recorded as of the ex-dividend date. The amount to be paid out as a distribution is determined by the Board of Directors each quarter. Net realized capital gains, if any, are generally distributed or deemed distributed at least annually. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies.

Share Repurchases

In connection with the Company’s share repurchase program, the cost of shares repurchased is charged to net assets on the trade date.

71

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Federal and State Income Taxes

We have elected to be treated as a RIC under the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, the Company must (among other requirements) meet certain source-of-income and asset diversification requirements and timely distribute to its stockholders at least 90% of its investment company taxable income as defined by the Code, for each year. The Company (among other requirements) has made and intends to continue to make the requisite distributions to its stockholders, which will generally relieve the Company from corporate-level income taxes. For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. The tax character of distributions paid to stockholders through September 30, 2020 may include return of capital, however, the exact amount cannot be determined at this point. The final determination of the tax character of distributions will not be made until we file our tax return for the tax year ending March 31, 2021. The character of income and gains that we will distribute is determined in accordance with income tax regulations that may differ from GAAP. Book and tax basis differences relating to stockholder dividend and distributions and other permanent book and tax difference are reclassified to paid-in capital.

If we do not distribute (or are not deemed to have distributed) at least 98% of our annual ordinary income and 98.2% of our capital gains in the calendar year earned, we will generally be required to pay excise tax equal to 4% of the amount by which 98% of our annual ordinary income and 98.2% of our capital gains exceed the distributions from such taxable income for the year. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, we accrue excise taxes, if any, on estimated undistributed taxable income.

If we fail to satisfy the annual distribution requirement or otherwise fail to qualify as a RIC in any taxable year, we would be subject to tax on all of our taxable income at regular corporate rates. Distribution would generally be taxable to our individual and other non-corporate taxable stockholders as ordinary dividend income eligible for the reduced maximum rate applicable to qualified dividend income to the extent of our current and accumulated earnings and profits provided certain holding period and other requirements are met. Subject to certain limitation under the Code, corporate distributions would be eligible for the dividend-received deduction. To qualify again to be taxed as a RIC in a subsequent year, we would be required to distribute to our stockholders our accumulated earnings and profits attributable to non RIC years. In addition, if we failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, we would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if we had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years.

We follow ASC 740, Income Taxes (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. As of September 30, 2020, there were no uncertain tax positions and no amounts accrued for interest or penalties. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although we file both federal and state income tax returns, our major tax jurisdiction is federal. Our tax returns for each of our federal tax years since 2017 remain subject to examination by the Internal Revenue Service.

Retroactive Adjustments for Common Stock Reverse Split

The Company’s Board of Directors approved a one-for-three reverse stock split of the Company’s common stock on October 30, 2018, which was effective as of close of business as of November 30, 2018 (the “Reverse Stock Split”). All common share and common per share amounts in the financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split as disclosed in Note 7.

72

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Recent Accounting Pronouncements

In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued because of the reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is evaluating the potential impact that the adoption of this guidance will have on the Company’s financial statements.

SEC Disclosure Update and Simplification

In August 2020, the U.S. Securities and Exchange Commission (“SEC”) issued Final Rule Release No. 33-10825 and No.34-89670, collectively referred to as 'Modernization of Regulation S-X Items 101, 103 and 105’. These rules amend certain SEC disclosure requirements to improve disclosure for investors and to simplify compliance for registrants, including new requirements for human capital disclosures and a summary of risk factors. The final rules are effective for all filings on or after November 9, 2020. The Company has evaluated the impact of the amendments and determined the effect of the adoption of the simplification rules on the financial statements were limited to the modification of certain disclosures.

On May 21, 2020, the SEC revised its measure of “significant subsidiary” set forth in Rule 1-02(w)(2) for investment companies. The new definition includes an alternative income measure to determine a “significant subsidiary”. The final rule will be effective on January 1, 2021, but voluntary compliance is permitted in advance of the effective date. The Company has elected to implement this new rule for the current period. See Note 5 to the financial statements for more information on the Company’s unconsolidated significant subsidiaries.

Note 3. Related Party Agreements and Transactions

Investment Advisory Agreement with AIM

The Company has an investment advisory management agreement with the Investment Adviser (the “Investment Advisory Agreement”) under which AIM receives a fee from the Company, consisting of two components — a base management fee and a performance-based incentive fee.

Base Management Fee

Effective April 1, 2018, the base management fee is calculated initially at an annual rate of 1.50% (0.375% per quarter) of the lesser of (i) the average of the value of the Company’s gross assets, net of average of any payable for investments (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) at the end of each of the two most recently completed calendar quarters and (ii) the average monthly value (measured as of the last day of each month) of the Company’s gross assets (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) during the most recently completed calendar quarter; provided, however, in each case, the base management fee is calculated at an annual rate of 1.00% (0.250% per quarter) of the average of the value of the Company’s gross assets (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) that exceeds the product of (A) 200% and (B) the value of the Company’s net asset value at the end of the prior calendar quarter. The base management fee will be payable quarterly in arrears. The value of the Company’s gross assets shall be calculated in accordance with the Company's valuation policies.

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APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Performance-based Incentive Fee

The incentive fee (the “Incentive Fee”) consists of two components that are determined independent of each other, with the result that one component may be payable even if the other is not. A portion of the Incentive Fee is based on income and a portion is based on capital gains, each as described below:

A. Incentive Fee based on Income

Beginning January 1, 2019, the incentive fee on pre-incentive fee net investment income will be determined and paid quarterly in arrears by calculating the amount by which (x) the aggregate amount of the pre-incentive fee net investment income with respect of the current calendar quarter and each of the eleven preceding calendar quarters beginning with the calendar quarter that commences on or after April 1, 2018 (the “trailing twelve quarters”) exceeds (y) the preferred return amount in respect of the trailing twelve quarters.

The preferred return amount will be determined on a quarterly basis, and will be calculated by summing the amounts obtained by multiplying 1.75% by the Company’s net asset value at the beginning of each applicable calendar quarter comprising the relevant trailing twelve quarters. The preferred return amount will be calculated after making appropriate adjustments to the Company’s net asset value at the beginning of each applicable calendar quarter for Company capital issuances and distributions during the applicable calendar quarter.

The amount of the Incentive Fee on Income that will be paid to the Investment Adviser for a particular quarter will equal the excess of the incentive fee on pre-incentive fee net investment income, so calculated less the aggregate incentive fee on pre-incentive fee net investment income that were paid to the Investment Adviser (excluding waivers, if any) in the preceding eleven calendar quarters comprising the relevant trailing twelve quarters.

The Company will pay the Investment Adviser an incentive fee with respect to our pre-incentive fee net investment income in each calendar quarter as follows:

(1) no incentive fee in any calendar quarter in which our pre-incentive fee net investment income for the trailing twelve quarters does not exceed the preferred return amount.

(2) 100% of our pre-incentive fee net investment income for the trailing twelve quarters, if any, that exceeds the preferred return amount but is less than or equal to an amount (the “catch-up amount”) determined by multiplying 2.1875% by the Company’s net asset value at the beginning of each applicable calendar quarter comprising the relevant trailing twelve quarters.

(3) for any quarter in which the Company’s pre-incentive fee net investment income for the trailing twelve quarters exceeds the catch-up amount, the incentive fee shall equal 20% of the amount of the Company’s pre-incentive fee net investment income for such trailing twelve quarters.

The Incentive Fee on Income as calculated is subject to a cap (the “Incentive Fee Cap”). The Incentive Fee Cap in any quarter is an amount equal to (a) 20% of the Cumulative Pre-Incentive Fee Net Return (as defined below) during the relevant trailing twelve quarters less (b) the aggregate Incentive Fees on Income that were paid to the Investment Adviser (excluding waivers, if any) in the preceding eleven calendar quarters (or portion thereof) comprising the relevant trailing twelve quarters.

For this purpose, “Cumulative Pre-Incentive Fee Net Return” during the relevant trailing twelve quarters means (x) Pre-Incentive Fee Net Investment Income in respect of the trailing twelve quarters less (y) any Net Capital Loss, since April 1, 2018, in respect of the trailing twelve quarters. If, in any quarter, the Incentive Fee Cap is zero or a negative value, the Company shall pay no Incentive Fee on Income to the Investment Adviser in that quarter. If, in any quarter, the Incentive Fee Cap is a positive value but is less than the Incentive Fee on Income calculated in accordance with the calculation described above, the Company shall pay the Investment Adviser the Incentive Fee Cap for such quarter. If, in any quarter, the Incentive Fee Cap is equal to or greater than the Incentive Fee on Income calculated in accordance with the calculation described above, the Company shall pay the Investment Adviser the Incentive Fee on Income for such quarter.

“Net Capital Loss” in respect of a particular period means the difference, if positive, between (i) aggregate capital losses, whether realized or unrealized, in such period and (ii) aggregate capital gains, whether realized or unrealized, in such period.

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APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

B. Incentive Fee Based on Cumulative Net Realized Gains

The Incentive Fee on Capital Gains is determined and payable in arrears as of the end of each calendar year (or upon termination of the investment advisory management agreement). This fee shall equal 20.0% of the sum of the Company’s realized capital gains on a cumulative basis, calculated as of the end of each calendar year (or upon termination of investment advisory management agreement), computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any Incentive Fees on Capital Gains previously paid to the Investment Adviser. The aggregate unrealized capital depreciation of the Company shall be calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company’s portfolio as of the applicable calculation date and (b) the accreted or amortized cost basis of such investment.

For accounting purposes only, we are required under GAAP to accrue a theoretical capital gains incentive fee based upon net realized capital gains and unrealized capital gain and loss on investments held at the end of each period. The accrual of this theoretical capital gains incentive fee assumes all unrealized capital gain and loss is realized in order to reflect a theoretical capital gains incentive fee that would be payable to the Investment Adviser at each measurement date. There was no accrual for theoretical capital gains incentive fee for the three and six months ended September 30, 2020 and 2019. It should be noted that a fee so calculated and accrued would not be payable under the Investment Advisers Act of 1940 (the “Advisers Act”) or the investment advisory management agreement, and would not be paid based upon such computation of capital gains incentive fees in subsequent periods. Amounts actually paid to the Investment Adviser will be consistent with the Advisers Act and formula reflected in the investment advisory management agreement which specifically excludes consideration of unrealized capital gain.

For the three and six months ended September 30, 2020, the Company recognized $9,262 and $18,786 respectively, of management fees, and $0 and $0, respectively, of incentive fees before impact of waived fees. For the three and six months ended September 30, 2019, the Company recognized $10,190 and $19,729 respectively, of management fees, and $1,911 and $1,911, respectively, of incentive fees before impact of waived fees. For the three and six months ended September 30, 2020 and 2019, no management fees were waived (as not applicable) and no incentive fees were waived.

As of September 30, 2020 and March 31, 2020, management and performance-based incentive fees payable were $9,262 and $10,289, respectively.

Fee Offset

On January 16, 2019, the Company and AIM entered into a fee offset agreement in connection with revenue realized by AIM and its affiliates for the management of certain aircraft assets. The Company will receive an offsetting credit against total incentive fees otherwise due to AIM under the investment advisory management agreement. The amount offset will initially be 20% of the management fee revenue earned and incentive fee revenue realized by AIM and its affiliates in connection with managing aircraft assets on related insurance balance sheets (“New Balance Sheet Investments”), new aircraft managed account capital (“New Managed Accounts”) and new dedicated aircraft funds (“New Aircraft Funds”). Once the aggregate capital raised by the New Aircraft Funds or New Managed Accounts and capital invested by the New Balance Sheet Investments exceeds $3 billion cumulatively, the fee offset will step down to 10% of the amount of incremental management fee revenue earned and incentive fee revenue realized by AIM and its affiliates. The fee offset will be in place for seven years, however the incentive fees realized by AIM and its affiliates after this seven-year period from applicable investments that were raised or made within the seven-year period will also be used to offset incentive fees payable to AIM by the Company. The offset will be limited to the amount of incentive fee payable by the Company to AIM and any unapplied fee offset which exceeds the incentive fees payable in a given quarter will carry forward to be credited against the incentive fees payable by the Company in subsequent quarters.

For three and six months ended September 30, 2020 and 2019, there was no fee offset.

75

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Administration Agreement with AIA

The Company has also entered into an administration agreement with the Administrator (the “Administration Agreement”) under which AIA provides administrative services for the Company. For providing these services, facilities and personnel, the Company reimburses the Administrator for the allocable portion of overhead and other expenses incurred by the Administrator and requested to be reimbursed by the Administrator in performing its obligations under the Administration Agreement. The expenses include rent and the Company’s allocable portion of compensation and other related expenses for its Chief Financial Officer, Chief Legal Officer and Chief Compliance Officer and their respective staffs. For the three and six months ended September 30, 2020, the Company recognized administrative services expense under the Administration Agreement of $1,201 and $2,389, respectively. For the three and six months ended September 30, 2019, the Company recognized administrative services expense under the Administration Agreement of $1,542 and $3,267, respectively. There was no payable to AIA and its affiliates for expenses paid on our behalf as of September 30, 2020 and March 31, 2020.

Administrative Service Expense Reimbursement

Merx Aviation Finance, LLC (“Merx”), a wholly-owned portfolio company of the Company, has entered into an administration agreement with the Administrator (the “Merx Administration Agreement”) under which AIA provides administrative services to Merx. For the three and six months ended September 30, 2020, the Company recognized administrative service expense reimbursements of $76 and $150, respectively, under the Merx Administration Agreement. For the three and six months ended September 30, 2019, the Company recognized administrative service expense reimbursements of $63 and $125, respectively.

Debt Expense Reimbursements

The Company has also entered into debt expense reimbursement agreements with Merx and several other portfolio companies which will reimburse the Company for reasonable out-of-pocket expenses incurred, including any interest, fees or other amounts incurred by the Company in connection with letters of credit issued on their behalf. For the three and six months ended September 30, 2020, the Company recognized debt expense reimbursements of $24 and $60, respectively, under the debt expense reimbursement agreements. For the three and six months ended September 30, 2019, the Company recognized debt expense reimbursements of $36 and $71, respectively, under the debt expense reimbursement agreements.

Co-Investment Activity

We may co-invest on a concurrent basis with affiliates of ours, subject to compliance with applicable regulations and our allocation procedures. Certain types of negotiated co-investments may be made only in accordance with the terms of the exemptive order we received from the SEC permitting us to do so. On March 29, 2016, we received an exemptive order from the SEC (the “Order”) permitting us greater flexibility to negotiate the terms of co-investment transactions with certain of our affiliates, including investment funds managed by AIM or its affiliates, subject to the conditions included therein. Under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors must be able to reach certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction are reasonable and fair to us and our stockholders and do not involve overreaching of us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our Board of Directors’ approved criteria. In certain situations where co-investment with one or more funds managed by AIM or its affiliates is not covered by the Order, the personnel of AIM or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on allocation policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. The Order is subject to certain terms and conditions so there can be no assurance that we will be permitted to co-invest with certain of our affiliates other than in the circumstances currently permitted by regulatory guidance and the Order.

As of September 30, 2020, the Company’s co-investment holdings were 62% of the portfolio or $1,599,243, measured at fair value. On a cost basis, 56% of the portfolio or $1,626,005 were co-investments. As of March 31, 2020, the Company’s co-investment holdings were 59% of the portfolio or $1,653,269, measured at fair value. On a cost basis, 55% of the portfolio or $1,711,258 were co-investments.

76

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Merx Aviation

Effective January 16, 2019, Mr. Gary Rothschild, President and Chief Executive Officer of Merx, became an employee of Apollo Management Holdings, L.P. ("AMH"), an affiliate of the Company investment adviser. Mr. Rothschild also retained his role as the President and Chief Executive Officer of Merx.

Effective January 16, 2019, Merx entered into a series of service arrangements with affiliates of AGM. Under a servicing agreement with Apollo Capital Management, L.P. (“ACM”), Merx serves as technical servicer to aircraft clients of ACM and its affiliates. Under a research support agreement with ACM, Merx employees assist ACM with technical due-diligence and underwriting of new aircraft-related investment opportunities. Under a technical support agreement, Merx and AMH share the services of Mr. Gary Rothschild, who is the President and Chief Executive Officer of Merx and an employee of AMH.

On April 1, 2020, $105,300 of the Merx first lien secured revolver held by the Company was converted into common equity. In addition, the interest rate on the revolver was lowered from 12% to 10%. The balance of the Merx revolver as of September 30, 2020 was $200,000.

Note 4. Earnings Per Share

The following table sets forth the computation of earnings (loss) per share (“EPS”), pursuant to ASC 260-10, for the three and six months ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Basic Earnings (Loss) Per Share
Net increase (decrease) in net assets resulting from operations	$	33,289	$	7,068	$	36,283	$	30,897
Weighted average shares outstanding	65,259,176		67,446,575		65,259,176		68,014,438
Basic earnings (loss) per share	$	0.51	$	0.10	$	0.56	$	0.45

77

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 5. Investments

Fair Value Measurement and Disclosures

The following table shows the composition of our investment as of September 30, 2020, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

					Fair Value Hierarchy
	Cost		Fair Value		Level 1		Level 2		Level 3
First Lien Secured Debt	$	2,116,785	$	1,998,765	$	—	$	—	$	1,998,765
Second Lien Secured Debt	336,566		294,549		—		—		294,549
Unsecured Debt	22,000		22,000		—		—		22,000
Structured Products and Other	16,755		9,265		—		—		9,265
Preferred Equity	22,534		8,023		—		—		8,023
Common Equity/Interests	375,763		253,716		—		475		253,241
Warrants	135		265		—		—		265
Total Investments before Cash Equivalents	$	2,890,538	$	2,586,583	$	—	$	475	$	2,586,108
Money Market Fund	$	25,825	$	25,825	$	25,825	$	—	$	—
Total Cash Equivalents	$	25,825	$	25,825	$	25,825	$	—	$	—
Total Investments after Cash Equivalents	$	2,916,363	$	2,612,408	$	25,825	$	475	$	2,586,108

The following table shows the composition of our investment as of March 31, 2020, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:

					Fair Value Hierarchy
	Cost		Fair Value		Level 1		Level 2		Level 3
First Lien Secured Debt	$	2,423,736	$	2,265,800	$	—	$	—	$	2,265,800
Second Lien Secured Debt	385,923		343,420		—		—		343,420
Unsecured Debt	—		—		—		—		—
Structured Products and Other	16,729		9,748		—		—		9,748
Preferred Equity	22,679		7,968		—		—		7,968
Common Equity/Interests	240,363		158,361		—		418		157,943
Warrants	183		136		—		—		136
Total Investments before Cash Equivalents	$	3,089,613	$	2,785,433	$	—	$	418	$	2,785,015
Money Market Fund	$	37,301	$	37,301	$	37,301	$	—	$	—
Total Cash Equivalents	$	37,301	$	37,301	$	37,301	$	—	$	—
Total Investments after Cash Equivalents	$	3,126,914	$	2,822,734	$	37,301	$	418	$	2,785,015

78

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The following table shows changes in the fair value of our Level 3 investments during the three months ended September 30, 2020:

	First Lien Secured Debt (2)		Second Lien Secured Debt (2)		Unsecured Debt		Structured Products and Other		Preferred Equity		Common Equity/Interests		Warrants		Total
Fair value as of June 30, 2020	$	2,093,720	$	309,111	$	—	$	9,815	$	8,720	$	249,031	$	217	$	2,670,614
Net realized gains (losses)	(3,334)		224		—		—		(14)		62		—		(3,062)
Net change in unrealized gains (losses)	41,943		2,120		—		(576)		(541)		(27,176)		48		15,818
Net amortization on investments	2,677		231		—		—		—		—		—		2,908
Purchases, including capitalized PIK (3)	93,679		477		22,000		26		—		32,603		—		148,785
Sales (3)	(229,920)		(17,614)		—		—		(142)		(1,279)		—		(248,955)
Transfers out of Level 3 (1)	—		—		—		—		—		—		—		—
Transfers into Level 3 (1)	—		—		—		—		—		—		—		—
Fair value as of September 30, 2020	$	1,998,765	$	294,549	$	22,000	$	9,265	$	8,023	$	253,241	$	265	$	2,586,108
Net change in unrealized gains (losses) on Level 3 investments still held as of September 30, 2020	$	12,800	$	1,766	$	—	$	(576)	$	(542)	$	(27,177)	$	47	$	(13,682)

The following table shows changes in the fair value of our Level 3 investments during the six months ended September 30, 2020:

	First Lien Secured Debt (2)		Second Lien Secured Debt (2)		Unsecured Debt		Structured Products and Other		Preferred Equity		Common Equity/Interests		Warrants		Total
Fair value as of March 31, 2020	$	2,265,800	$	343,420	$	—	$	9,748	$	7,968	$	157,943	$	136	$	2,785,015
Net realized gains (losses)	(10,667)		(1,023)		—		—		(14)		62		(48)		(11,690)
Net change in unrealized gains (losses)	39,917		485		—		(509)		200		(40,103)		177		167
Net amortization on investments	5,370		487		—		—		—		—		—		5,857
Purchases, including capitalized PIK (3)	232,786		850		22,000		26		11		137,910		—		393,583
Sales (3)	(534,441)		(49,670)		—		—		(142)		(2,571)		—		(586,824)
Transfers out of Level 3 (1)	—		—		—		—		—		—		—		—
Transfers into Level 3 (1)	—		—		—		—		—		—		—		—
Fair value as of September 30, 2020	$	1,998,765	$	294,549	$	22,000	$	9,265	$	8,023	$	253,241	$	265	$	2,586,108
Net change in unrealized gains (losses) on Level 3 investments still held as of September 30, 2020	$	6,898	$	(1,289)	$	—	$	(508)	$	199	$	(40,103)	$	128	$	(34,675)

____________________

(1)Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Investment Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the periods shown.

(2)Includes unfunded commitments measured at fair value of $(8,432).

(3)Includes reorganizations and restructuring of investments.

79

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The following table shows changes in the fair value of our Level 3 investments during the three months ended September 30, 2019:

	First Lien Secured Debt (2)		Second Lien Secured Debt (2)		Unsecured Debt		Structured Products and Other		Preferred Equity		Common Equity/Interests		Warrants		Total
Fair value as of June 30, 2019	$	1,794,232	$	373,949	$	—	$	45,525	$	28,598	$	183,398	$	89	$	2,425,791
Net realized gains (losses)	(6,266)		—		—		—		—		518		—		(5,748)
Net change in unrealized gains (losses)	(18,084)		(3,668)		—		694		(4,100)		3,756		(3)		(21,405)
Net amortization on investments	1,666		256		—		126		—		—		—		2,048
Purchases, including capitalized PIK (3)	472,959		872		—		25		—		3,981		—		477,837
Sales (3)	(174,970)		(34,132)		—		—		—		(15,827)		—		(224,929)
Transfers out of Level 3 (1)	(13,963)		(21,590)		—		—		—		—		—		(35,553)
Transfers into Level 3 (1)	—		28,584		—		—		—		—		—		28,584
Fair value as of September 30, 2019	$	2,055,574	$	344,271	$	—	$	46,370	$	24,498	$	175,826	$	86	$	2,646,625
Net change in unrealized gains (losses) on Level 3 investments still held as of September 30, 2019	$	(18,934)	$	(3,449)	$	—	$	694	$	(4,102)	$	3,756	$	(3)	$	(22,038)

The following table shows changes in the fair value of our Level 3 investments during the six months ended September 30, 2019:

	First Lien Secured Debt (2)		Second Lien Secured Debt (2)		Unsecured Debt		Structured Products and Other		Preferred Equity		Common Equity/Interests		Warrants		Total
Fair value as of March 31, 2019	$	1,586,931	$	337,545	$	—	$	45,595	$	28,182	$	183,754	$	150	$	2,182,157
Net realized gains (losses)	(6,274)		—		—		—		—		1,607		—		(4,667)
Net change in unrealized gains (losses)	(31,433)		(2,447)		—		500		(3,684)		2,501		(64)		(34,627)
Net amortization on investments	3,245		480		—		248		—		—		—		3,973
Purchases, including capitalized PIK (3)	872,294		5,754		—		27		—		6,152		—		884,227
Sales (3)	(369,189)		(34,217)		—		—		—		(18,188)		—		(421,594)
Transfers out of Level 3 (1)	—		(21,480)		—		—		—		—		—		(21,480)
Transfers into Level 3 (1)	—		58,636		—		—		—		—		—		58,636
Fair value as of September 30, 2019	$	2,055,574	$	344,271	$	—	$	46,370	$	24,498	$	175,826	$	86	$	2,646,625
Net change in unrealized gains (losses) on Level 3 investments still held as of September 30, 2019	$	(33,008)	$	(4,186)	$	—	$	500	$	(3,685)	$	2,501	$	(64)	$	(37,942)

____________________

(1)Transfers out of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Investment Adviser. Transfers are assumed to have occurred at the end of the periods. There were no transfers between Level 1 and Level 2 fair value measurements during the period shown.

(2)Includes unfunded commitments measured at fair value of $(8,008).

(3)Includes reorganizations and restructuring of investments.

80

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of September 30, 2020 and March 31, 2020. In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below tables are not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values.

The unobservable inputs used in the fair value measurement of our Level 3 investments as of September 30, 2020 were as follows:

			Quantitative Information about Level 3 Fair Value Measurements
Asset Category	Fair Value		Valuation Techniques/Methodologies	Unobservable Input	Range		Weighted Average (1)
First Lien Secured Debt	$	200,000	Discounted Cash Flow	Discount Rate	10.7%	10.7%	10.7%
			Residual Value	Residual Value	N/A	N/A	N/A
	55,061		Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
			Market Comparable Technique	Comparable Multiple	0.5x	7.0x	4.1x
	14,383		Recent Transaction	Recent Transaction	N/A	N/A	N/A
	42,290		Recovery Analysis	Commodity Price	$41.00	$59.30	$56.81
	1,036		Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
	1,685,995		Yield Analysis	Discount Rate	2.1%	31.3%	8.9%
Second Lien Secured Debt	3,654		Market Comparable Technique	Comparable Multiple	8.1x	8.1x	8.1x
	10,333		Recovery Analysis	Commodity Price	43.50	60.00	57.08
	280,562		Yield Analysis	Discount Rate	9.4%	21.0%	12.7%
Unsecured Debt	22,000		Discounted Cash Flow	Discount Rate	14.2%	14.2%	14.2%
			Residual Value	Residual Value	N/A	N/A	N/A
Structured Products and Other	9,265		Discounted Cash Flow	Discount Rate	13.0%	13.0%	13.0%
Preferred Equity	414		Discounted Cash Flow	Discount Rate	13.5%	13.5%	13.5%
	1,694		Market Comparable Technique	Comparable Multiple	0.5x	13.6x	4.1x
	5,915		Option Pricing Model	Expected Volatility	82.0%	82.0%	82.0%
	—		Yield Analysis	Discount Rate	31.3%	31.3%	0.0%
Common Equity/Interests	10,739		Discounted Cash Flow	Discount Rate	13.5%	31.3%	19.8%
	208,283		Discounted Cash Flow	Discount Rate	10.7%	14.2%	12.0%
			Residual Value	Residual Value	N/A	N/A	N/A
	24,895		Implied New Equity Value	Implied Illiquidity Discount	19.5%	19.5%	19.5%
	7,154		Market Comparable Technique	Comparable Multiple	6.0x	13.5x	8.8x
	2,170		Recovery Analysis	Commodity Price	41.00	60.00	56.79
	—		Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
Warrants	265		Option Pricing Model	Expected Volatility	35.0%	50.0%	47.4%
Total Level 3 Investments	$	2,586,108

___________________

(1)The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves.

81

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The unobservable inputs used in the fair value measurement of our Level 3 investments as of March 31, 2020 were as follows:

			Quantitative Information about Level 3 Fair Value Measurements
Asset Category	Fair Value		Valuation Techniques/Methodologies	Unobservable Input	Range		Weighted Average (1)
First Lien Secured Debt	$	347,299	Discounted Cash Flow	Discount Rate	2.3%	14.7%	12.3%
	61,471		Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
			Market Comparable Technique	Comparable Multiple	1.3x	9.3x	6.3x
	96,729		Recent Transaction	Recent Transaction	N/A	N/A	N/A
	47,215		Recovery Analysis	Commodity Price	30.00	57.50	57.04
	2,066		Recovery Analysis	Liquidation	N/A	N/A	N/A
	1,036		Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
	1,709,984		Yield Analysis	Discount Rate	4.3%	31.1%	9.5%
Second Lien Secured Debt	14,711		Recovery Analysis	Commodity Price	34.00	60.00	56.25
	328,709		Yield Analysis	Discount Rate	6.1%	17.5%	12.8%
Structured Products and Other	9,748		Discounted Cash Flow	Discount Rate	13.5%	13.5%	13.5%
Preferred Equity	442		Discounted Cash Flow	Discount Rate	13.5%	13.5%	13.5%
	2,142		Market Comparable Technique	Comparable Multiple	3.3x	4.7x	3.7x
	5,384		Option Pricing Model	Expected Volatility	47.0%	47.0%	47.0%
	—		Yield Analysis	Discount Rate	20.0%	20.0%	0.0%
Common Equity/Interests	135,288		Discounted Cash Flow	Discount Rate	12.2%	31.3%	14.9%
	20,144		Market Comparable Technique	Comparable Multiple	3.2x	13.0x	6.0x
	100		Recent Transaction	Recent Transaction	N/A	N/A	N/A
	2,411		Recovery Analysis	Commodity Price	30.00	60.00	56.06
Warrants	136		Option Pricing Model	Expected Volatility	35.0%	70.0%	57.7%
	—		Recovery Analysis	Liquidation	N/A	N/A	N/A
Total Level 3 Investments	$	2,785,015

____________________

(1)The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves.

82

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The significant unobservable inputs used in the fair value measurement of the Company’s debt and equity securities are primarily earnings before interest, taxes, depreciation and amortization (“EBITDA”) comparable multiples and market discount rates. The Company typically uses EBITDA comparable multiples on its equity securities to determine the fair value of investments. The Company uses market discount rates for debt securities to determine if the effective yield on a debt security is commensurate with the market yields for that type of debt security. If a debt security’s effective yield is significantly less than the market yield for a similar debt security with a similar credit profile, the resulting fair value of the debt security may be lower. For certain investments where fair value is derived based on a recovery analysis, the Company uses underlying commodity prices from third party market pricing services to determine the fair value and/or recoverable amount, which represents the proceeds expected to be collected through asset sales or liquidation. Further, for certain investments, the Company also considered the probability of future events which are not in management’s control. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower or higher fair value measurement. The significant unobservable inputs used in the fair value measurement of the structured products include the discount rate applied in the valuation models in addition to default and recovery rates applied to projected cash flows in the valuation models. Specifically, when a discounted cash flow model is used to determine fair value, the significant input used in the valuation model is the discount rate applied to present value the projected cash flows. Increases in the discount rate can significantly lower the fair value of an investment; conversely decreases in the discount rate can significantly increase the fair value of an investment. The discount rate is determined based on the market rates an investor would expect for a similar investment with similar risks. For certain investments such as warrants, the Company may use an option pricing technique, of which the applicable method is the Black-Scholes Option Pricing Method (“BSM”), to perform valuations. The BSM is a model of price variation over time of financial instruments, such as equity, that is used to determine the price of call or put options. Various inputs are required but the primary unobservable input into the BSM model is the underlying asset volatility.

Investment Transactions

For the three and six months ended September 30, 2020, purchases of investments on a trade date basis were $105,865 and $243,754, respectively. For the three and six months ended September 30, 2019, purchases of investments on a trade date basis were $476,738 and $911,997, respectively.

For the three and six months ended September 30, 2020, sales and repayments (including prepayments and unamortized fees) of investments on a trade date basis were $208,969 and $441,828, respectively. For the three and six months ended September 30, 2019, sales and repayments (including prepayments and unamortized fees) of investments on a trade date basis were $269,681 and $489,943, respectively.

PIK Income

The Company holds loans and other investments, including certain preferred equity investments, that have contractual PIK income. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. During the three and six months ended September 30, 2020, PIK income earned was $925 and $2,801, respectively. During the three and six months ended September 30, 2019, PIK income earned was $1,604 and $7,160, respectively.

The following table shows the change in capitalized PIK balance for the three and six months ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
PIK balance at beginning of period	$	39,016	$	28,604	$	37,481	$	23,721
PIK income capitalized	1,423		1,099		3,033		5,982
Adjustments due to investments exited or written off	—		—		—		—
PIK income received in cash	—		(6,322)		(75)		(6,322)
PIK balance at end of period	$	40,439	$	23,381	$	40,439	$	23,381

83

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Dividend Income on CLOs

The Company holds structured products and other investments. The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. During the three and six months ended September 30, 2020, dividend income from structured products was $331 and $676, respectively. During the three and six months ended September 30, 2019, dividend income from structured products was $313 and $632, respectively.

Investments on Non-Accrual Status

As of September 30, 2020, 4.9% of total investments at amortized cost, or 1.2% of total investments at fair value, were on non-accrual status. As of March 31, 2020, 5.1% of total investments at amortized cost, or 1.7% of total investments at fair value, were on non-accrual status.

Unconsolidated Significant Subsidiary

The following unconsolidated subsidiary is considered a significant subsidiary under SEC Regulation S-X Rule 10-01(b)(1) as of September 30, 2020. Accordingly, summarized, unaudited, comparative financial information is presented below for the unconsolidated significant subsidiary.

Merx Aviation Finance, LLC

Merx Aviation Finance, LLC and its subsidiaries are principally engaged in acquiring and leasing commercial aircraft to airlines. Its focus is on current generation aircraft, held either domestically or internationally. Merx may acquire fleets of aircraft primarily through securitized, non-recourse debt or individual aircraft. Merx may outsource its aircraft servicing requirements to third parties that have the global staff and expertise necessary to complete such tasks. The following table shows unaudited summarized financial information for Merx Aviation:

	Six Months Ended September 30,
	2020		2019*
Net revenue	$	111,758	$	111,665
Net operating income	(1,391)		41,399
Earnings before taxes	(36,985)		(14,960)
Net profit	(35,893)		(14,703)

*Certain amounts in the prior period have been reclassified to conform with the current period classifications. Management does not consider the revision to have a material impact on the financial statements.

84

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 6. Debt and Foreign Currency Transactions and Translations

On April 4, 2018, the Company’s Board of Directors, including a “required majority” (as defined in Section 57(o) of the Investment Company Act of 1940, as amended) of the Board, approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the Investment Company Act of 1940. As a result, effective on April 4, 2019, our asset coverage requirement applicable to senior securities was reduced from 200% to 150% (i.e., the revised regulatory leverage limitation permits BDCs to double the amount of borrowings, such that we would be able to borrow up to two dollars for every dollar we have in assets less all liabilities and indebtedness not represented by senior securities issued by us).

The Company’s outstanding debt obligations as of September 30, 2020 were as follows:

	Date Issued/Amended	Total Aggregate Principal Amount Committed		Principal Amount Outstanding			Fair Value			Final Maturity Date
Senior Secured Facility	11/19/2018	$	1,810,000	$	1,254,626	*	$	1,262,040	(2)	11/19/2023
2025 Notes	3/3/2015	350,000		350,000			337,510		(1)	3/3/2025
Total Debt Obligations		$	2,160,000	$	1,604,626		$	1,599,550
Deferred Financing Costs and Debt Discount				$	(4,298)
Total Debt Obligations, net of Deferred Financing Cost and Debt Discount				$	1,600,328

____________________

*Includes foreign currency debt obligations as outlined in Foreign Currency Transactions and Translations within this note to the financial statements.

(1)The fair value of these debt obligations would be categorized as Level 2 under ASC 820 as of September 30, 2020. The valuation is based on broker quoted prices.

(2)The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of September 30, 2020. The valuation is based on a yield analysis and discount rate commensurate with the market yields for similar types of debt.

The Company’s outstanding debt obligations as of March 31, 2020 were as follows:

	Date Issued/Amended	Total Aggregate Principal Amount Committed		Principal Amount Outstanding			Fair Value			Final Maturity Date
Senior Secured Facility	11/19/2018	$	1,810,000	$	1,449,402	*	$	1,386,914	(1)	11/19/2023
2025 Notes	3/3/2015	350,000		350,000			262,500		(1)	3/3/2025
Total Debt Obligations		$	2,160,000	$	1,799,402		$	1,649,414
Deferred Financing Costs and Debt Discount				$	(4,785)
Total Debt Obligations, net of Deferred Financing Cost and Debt Discount				$	1,794,617

____________________

*Includes foreign currency debt obligations as outlined in Foreign Currency Transactions and Translations within this note.

(1)The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of March 31, 2020. The valuation is based on a yield analysis and discount rate commensurate with the market yields for similar types of debt.

85

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Senior Secured Facility

On November 19, 2018, the Company amended and restated its senior secured, multi-currency, revolving credit facility (the “Senior Secured Facility”) from the previous December 22, 2016 amendment. The amended and restated agreement reduced the Company’s minimum asset coverage financial covenant from 200% to 150%, increased the lenders commitments from $1,190,000 to $1,590,000, extended the final maturity date through November 19, 2023, and included an accordion provision which allows the Company to increase the total commitments under the existing revolving facility up to an aggregate principal amount of $2,385,000 from new or existing lenders on the same terms and conditions as the existing commitments. On February 28, 2019, the Company entered into an amendment to its Senior Secured Facility to increase the multicurrency commitments by $50,000 from $1,590,000 to $1,640,000. On May 31, 2019, the Company entered into an amendment to its Senior Secured Facility to increase the multicurrency commitments by $70,000 from $1,640,000 to $1,710,000. On March 13, 2020, the Company entered into an amendment to its Senior Secured Facility to increase the multicurrency commitments by $100,000 from $1,710,000 to $1,810,000 pursuant to the accordion provisions therein. The accordion provisions under the Senior Secured Facility allow the Company to increase the total commitments under the existing revolving facility up to an aggregate principal amount of $2,385,000 from new or existing lenders on the same terms and conditions as the existing commitments. The Senior Secured Facility is secured by substantially all of the assets in the Company’s portfolio, including cash and cash equivalents. Commencing November 30, 2022, the Company is required to repay, in twelve consecutive monthly installments of equal size, the outstanding amount under the Senior Secured Facility as of November 19, 2022. In addition, the stated interest rate on the facility remains as a formula-based calculation based on a minimum borrowing base, resulting in a stated interest rate, depending on the type of borrowing, of (a) either LIBOR plus 1.75% per annum or LIBOR plus 2.00% per annum, or (b) either Alternate Base Rate plus 0.75% per annum or Alternate Base Rate plus 1% per annum. As of September 30, 2020, the stated interest rate on the facility was LIBOR plus 2.00%. The Company is required to pay a commitment fee of 0.375% per annum on any unused portion of the Senior Secured Facility and participation fees and fronting fees of up to 2.25% per annum on the letters of credit issued.

The Senior Secured Facility contains affirmative and restrictive covenants, events of default and other customary provisions for similar debt facilities, including: (a) periodic financial reporting requirements, (b) maintaining minimum stockholders’ equity of the greater of (i) 30% of the total assets of the Company and its consolidated subsidiaries as of the last day of any fiscal quarter and (ii) the sum of (A) $870,000 plus (B) 25% of the net proceeds from the sale of equity interests in the Company after the closing date of the Senior Secured Facility, (c) maintaining a ratio of total assets, less total liabilities (other than indebtedness) to total indebtedness, in each case of the Company and its consolidated subsidiaries, of not less than 1.5:1.0, (d) limitations on the incurrence of additional indebtedness, including a requirement to meet a certain minimum liquidity threshold before the Company can incur such additional debt, (e) limitations on liens, (f) limitations on investments (other than in the ordinary course of the Company’s business), (g) limitations on mergers and disposition of assets (other than in the normal course of the Company’s business activities), (h) limitations on the creation or existence of agreements that permit liens on properties of the Company’s consolidated subsidiaries and (i) limitations on the repurchase or redemption of certain unsecured debt and debt securities. In addition to the asset coverage ratio described in clause (c) of the preceding sentence, borrowings under the Senior Secured Facility (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio. The advance rate applicable to any specific type of asset in the Company’s portfolio will also depend on the relevant asset coverage ratio as of the date of determination. Borrowings under the Senior Secured Facility will also continue to be subject to the leverage restrictions contained in the Investment Company Act of 1940, as amended.

The Senior Secured Facility also provides for the issuance of letters of credit up to an aggregate amount of $150,000. As of September 30, 2020 and March 31, 2020, the Company had $177 and $6,227, respectively, in standby letters of credit issued through the Senior Secured Facility. The amount available for borrowing under the Senior Secured Facility is reduced by any standby letters of credit issued through the Senior Secured Facility. Under GAAP, these letters of credit are considered commitments because no funding has been made and as such are not considered a liability. These letters of credit are not senior securities because they are not in the form of a typical financial guarantee and the portfolio companies are obligated to refund any drawn amounts. The available remaining capacity under the Senior Secured Facility was $555,197 and $354,371 as of September 30, 2020 and March 31, 2020, respectively. Terms used in this disclosure have the meanings set forth in the Senior Secured Facility agreement.

86

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Senior Unsecured Notes

2025 Notes

On March 3, 2015, the Company issued $350,000 aggregate principal amount of senior unsecured notes for net proceeds of $343,650 (the “2025 Notes”). The 2025 Notes will mature on March 3, 2025. Interest on the 2025 Notes is due semi-annually on March 3 and September 3, at an annual rate of 5.25%, commencing on September 3, 2015. The 2025 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness.

2043 Notes

On June 17, 2013, the Company issued $135,000 aggregate principal amount of senior unsecured notes and on June 24, 2013, an additional $15,000 in aggregate principal amount of such notes was issued pursuant to the underwriters’ over-allotment option exercise. In total, $150,000 of aggregate principal was issued for net proceeds of $145,275 (the “2043 Notes”). The 2043 Notes will mature on July 15, 2043. Interest on the 2043 Notes is paid quarterly on January 15, April 15, July 15 and October 15, at an annual rate of 6.875%, commencing on October 15, 2013. The Company may redeem the 2043 Notes in whole or in part at any time or from time to time on or after July 15, 2018. The 2043 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior, unsecured indebtedness. The 2043 Notes are listed on the New York Stock Exchange under the ticker symbol “AIY.”

On August 12, 2019, the Company redeemed the entire $150,000 aggregate principal amount outstanding of the 2043 Notes in accordance with the terms of the indenture governing the 2043 Notes, before its stated maturity date, which resulted in a realized loss on the extinguishment of debt of $4,375.

The following table summarizes the average and maximum debt outstanding, and the interest and debt issuance cost for the three and six months ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Average debt outstanding	$	1,664,934	$	1,493,109	$	1,728,597	$	1,372,500
Maximum amount of debt outstanding	1,757,608		1,626,865		1,818,920		1,626,865
Weighted average annualized interest cost (1)	2.96%		4.60%		3.04%		4.85%
Annualized amortized debt issuance cost	0.34%		0.37%		0.32%		0.41%
Total annualized interest cost	3.30%		4.97%		3.36%		5.26%

____________________

(1)Includes the stated interest expense and commitment fees on the unused portion of the Senior Secured Facility. Commitment fees for the three and six months ended September 30, 2020 were $467 and $806 respectively. Commitment fees for the three and six months ended September 30, 2019 were $595 and $1,439, respectively.

87

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Foreign Currency Transactions and Translations

The Company had the following foreign-denominated debt outstanding on the Senior Secured Facility as of September 30, 2020:

	Original Principal Amount (Local)		Original Principal Amount (USD)		Principal Amount Outstanding		Unrealized Gain/(Loss)		Reset Date
Canadian Dollar	C$	2,300	$	1,894	$	1,722	$	172	10/30/2020
Euro	€	29,900	32,705		35,062		(2,357)		10/30/2020
British Pound	£	1,500	1,981		1,939		42		10/6/2020
British Pound	£	3,500	4,456		4,525		(69)		10/19/2020
British Pound	£	3,000	3,523		3,878		(355)		10/26/2020
British Pound	£	96,000	119,382		124,109		(4,727)		10/30/2020
Australian Dollar	A$	1,000	701		717		(16)		10/19/2020
Australian Dollar	A$	6,000	4,406		4,300		106		10/30/2020
			$	169,048	$	176,252	$	(7,204)

The Company had the following foreign-denominated debt outstanding on the Senior Secured Facility as of March 31, 2020:

	Original Principal Amount (Local)		Original Principal Amount (USD)		Principal Amount Outstanding		Unrealized Gain/(Loss)		Reset Date
Canadian Dollar	C$	2,300	$	1,894	$	1,616	$	278	4/30/2020
Euro	€	36,400	39,960		39,940		20		4/30/2020
British Pound	£	3,500	4,456		4,340		116		4/14/2020
British Pound	£	9,000	11,631		11,159		472		4/24/2020
British Pound	£	1,500	1,943		1,860		83		4/27/2020
British Pound	£	87,000	107,751		107,876		(125)		4/30/2020
British Pound	£	3,000	3,523		3,720		(197)		4/20/2020
Australian Dollar	A$	1,000	701		612		89		4/14/2020
Australian Dollar	A$	6,000	4,406		3,672		734		4/30/2020
			$	176,265	$	174,795	$	1,470

As of September 30, 2020 and March 31, 2020, the Company was in compliance with all debt covenants for all outstanding debt obligations.

88

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 7. Stockholders’ Equity

There were no equity offerings of common stock during the three and six months ended September 30, 2020 and March 31, 2020.

The Company adopted the following plans, approved by the Board of Directors, for the purpose of repurchasing its common stock in accordance with applicable rules specified in the Securities Exchange Act of 1934 (the “1934 Act”) (the “Repurchase Plans”):

Date of Agreement/Amendment	Maximum Cost of Shares That May Be Repurchased		Cost of Shares Repurchased		Remaining Cost of Shares That May Be Repurchased
August 5, 2015	$	50,000	$	50,000	$	—
December 14, 2015	50,000		50,000		—
September 14, 2016	50,000		50,000		—
October 30, 2018	50,000		50,000		—
February 6, 2019	50,000		23,071		26,929
Total as of September 30, 2020	$	250,000	$	223,071	$	26,929

The Repurchase Plans were designed to allow the Company to repurchase its shares both during its open window periods and at times when it otherwise might be prevented from doing so under applicable insider trading laws or because of self-imposed trading blackout periods. A broker selected by the Company will have the authority under the terms and limitations specified in an agreement with the Company to repurchase shares on the Company’s behalf in accordance with the terms of the Repurchase Plans. Repurchases are subject to SEC regulations as well as certain price, market volume and timing constraints specified in the Repurchase Plans. Pursuant to the Repurchase Plans, the Company may from time to time repurchase a portion of its shares of common stock and the Company is hereby notifying stockholders of its intention as required by applicable securities laws.

Under the Repurchase Plans described above, the Company allocated the following amounts to be repurchased in accordance with SEC Rule 10b5-1 (the “10b5-1 Repurchase Plans”):

Effective Date	Termination Date	Amount Allocated to 10b5-1 Repurchase Plans
September 15, 2015	November 5, 2015	$	5,000
January 1, 2016	February 5, 2016	10,000
April 1, 2016	May 19, 2016	5,000
July 1, 2016	August 5, 2016	15,000
September 30, 2016	November 8, 2016	20,000
January 4, 2017	February 6, 2017	10,000
March 31, 2017	May 19, 2017	10,000
June 30, 2017	August 7, 2017	10,000
October 2, 2017	November 6, 2017	10,000
January 3, 2018	February 8, 2018	10,000
June 18, 2018	August 9, 2018	10,000
September 17, 2018	October 31, 2018	10,000
December 12, 2018	February 7, 2019	10,000
February 25, 2019	May 17, 2019	25,000
March 18, 2019	May 17, 2019	10,000
June 4, 2019	August 7, 2019	25,000
June 17, 2019	August 7, 2019	20,000
September 16, 2019	November 6, 2019	20,000
December 6, 2019	February 5, 2020	25,000
December 16, 2019	February 5, 2020	15,000
March 12, 2020	March 19, 2020	20,000

89

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

During the six months ended September 30, 2020, the Company did not repurchase shares.

During the six months ended September 30, 2019, the Company repurchased 1,829,634 shares at a weighted average price per share of $16.03, inclusive of commissions, for a total cost of $29,337. This represents a discount of approximately 15.24% of the average net asset value per share for the six months ended September 30, 2019.

Since the inception of the Repurchase Plans through September 30, 2020, the Company repurchased 13,654,578 shares at a weighted average price per share of $16.34, inclusive of commissions, for a total cost of $223,072. Including fractional shares, the company has repurchased 13,654,608 shares at a weighted average price per share of $16.34, inclusive of commissions for a total cost of $223,072.

On October 30, 2018, the Company’s Board of Directors approved a one-for-three reverse stock split of the Company’s common stock which was effective as of the close of business on November 30, 2018. The Company's common stock began trading on a split-adjusted basis on December 3, 2018. The fractional shares that resulted from the Reverse Stock Split were approximately 29 shares and they were canceled by paying cash in lieu of the fair value.

On July 22, 2019, the Board of Directors approved Articles of Amendment which amended the Company’s charter to reduce the amount of authorized capital stock from 400,000,000 shares, par value $0.001 per share, to 130,000,000 shares, par value $0.001 per share. The Articles of Amendment were accepted for record by the Department of Assessments and Taxation of the State of Maryland on July 22, 2019 and immediately became effective.

On March 19, 2020, the Company announced a suspension of its stock repurchase program, including amounts allocated to Rule 10b5-1 repurchase plans. The Company retained the right to reinstate the stock repurchase program.

90

APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 8. Commitments and Contingencies

The Company has various commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. As of September 30, 2020 and March 31, 2020, the Company had the following unfunded commitments to its portfolio companies:

	September 30, 2020		March 31, 2020
Unfunded revolver obligations and bridge loan commitments (1)	$	278,002	$	269,716
Standby letters of credit issued and outstanding (2)	3,842		9,014
Unfunded delayed draw loan commitments (3)	175,749		230,778
Total Unfunded Commitments (4)	$	457,593	$	509,508

__________________

(1)The unfunded revolver obligations may or may not be funded to the borrowing party in the future. The amounts relate to loans with various maturity dates, but the entire amount was eligible for funding to the borrowers as of September 30, 2020 and March 31, 2020, subject to the terms of each loan’s respective credit agreements which includes borrowing covenants that need to be met prior to funding. As of September 30, 2020 and March 31, 2020, the bridge loan commitments included in the balances were $0 and $15,050, respectively.

(2)For all these letters of credit issued and outstanding, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. None of the letters of credit issued and outstanding are recorded as a liability on the Company’s Statements of Assets and Liabilities as such letters of credit are considered in the valuation of the investments in the portfolio company.

(3)The Company’s commitment to fund delayed draw loans is triggered upon the satisfaction of certain pre-negotiated terms and conditions which can include covenants to maintain specified leverage levels and other related borrowing base covenants. For commitments to fund delayed draw loans with performance thresholds, borrowers are required to meet certain performance requirements before the Company is obligated to fulfill these commitments.

(4)The Company also had an unfunded revolver commitment to its fully controlled affiliate Merx Aviation Finance, LLC of $100,000 and $194,700 as of September 30, 2020 and March 31, 2020, respectively. Given the Company’s controlling interest, the timing and the amount of the funding has not been determined.

As further discussed in Note 2, the full extent of the impact of COVID-19 on the global economy generally, and the Company’s business in particular is uncertain. As of September 30, 2020, no contingencies have been recorded on the Company’s Statement of Assets and Liabilities as a result of COVID-19, however as the global pandemic continues and the economic implications worsen, it may have long-term impacts on the Company’s financial condition, results of operations, and cash flows. Refer to Note 2 for further discussion of COVID-19

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APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 9. Financial Highlights

The following is a schedule of financial highlights for the six months ended September 30, 2020 and 2019.

	Six Months Ended September 30, 2020			Six Months Ended September 30, 2019
	(Unaudited)			(Unaudited)
Per Share Data*
Net asset value at beginning of period	$	15.70		$	19.06
Net investment income (1)	0.86			1.03
Net realized and change in unrealized gains (losses) (1)	(0.30)			(0.58)
Net increase in net assets resulting from operations	0.56			0.45
Distribution of net investment income (2)	(0.81)			(0.90)
Distribution of return of capital (2)	—			—
Accretion due to share repurchases	—			0.08
Net asset value at end of period	$	15.44		$	18.69
Per share market value at end of period	$	8.27		$	16.09
Total return (3)	33.90		%	12.37		%
Shares outstanding at end of period	65,259,176			67,047,352
Weighted average shares outstanding	65,259,176			68,014,438
Ratio/Supplemental Data
Net assets at end of period (in millions)	$	1,007.7		$	1,253.4
Annualized ratio of operating expenses to average net assets (4)(5)	5.18		%	4.73		%
Annualized ratio of interest and other debt expenses to average net assets (5)	5.76		%	5.63		%
Annualized ratio of total expenses to average net assets (4)(5)	10.94		%	10.36		%
Annualized ratio of net investment income to average net assets (5)	11.09		%	10.93		%
Average debt outstanding (in millions)	$	1,728.6		$	1,372.5
Average debt per share	$	26.49		$	20.18
Annualized portfolio turnover rate (5)	18.12		%	37.53		%
Asset coverage per unit (6)	$	1,628		$	1,789

____________________

*Totals may not foot due to rounding.

(1)Financial highlights are based on the weighted average number of shares outstanding for the period presented.

(2)The tax character of distributions are determined based on taxable income calculated in accordance with income tax regulations which may differ from amounts determined under GAAP. Although the tax character of distributions paid to stockholders through September 30, 2020 may include return of capital, the exact amount cannot be determined at this point. Per share amounts are based on actual rate per share.

(3)Total return is based on the change in market price per share during the respective periods. Total return also takes into account distributions, if any, reinvested in accordance with the Company’s dividend reinvestment plan. Total return does not reflect sales load.

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APOLLO INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

(4)The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets are shown inclusive of all voluntary management and incentive fee waivers (See Note 3 to the financial statements). For the six months ended September 30, 2020, the annualized ratio of operating expenses to average net assets and the annualized ratio of total expenses to average net assets would be 5.21% and 10.99%, respectively, without the voluntary fee waivers. For the six months ended September 30, 2019 the ratio of operating expenses to average net assets and the ratio of total expenses to average net assets would be 4.75% and 10.39%, respectively, without the voluntary fee waivers.

(5)Annualized for the six months ended September 30, 2020 and September 30, 2019.

(6)The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness. This asset coverage ratio is multiplied by one thousand to determine the asset coverage per unit.

Note 10. Subsequent Events

Management has evaluated subsequent events through the date of issuance of these financial statements and has determined that there are no subsequent events outside the ordinary scope of business that require adjustment to, or disclosure in, the financial statements other than those disclosed below.

The Company believes the estimates and assumptions underlying our financial statements are reasonable and supportable based on the information available as of September 30, 2020. However uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of September 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results may ultimately differ from those estimates. To the extent the Company's portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on the Company's future net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of the Company's portfolio companies. See Note 2 for information regarding the potential impact of the COVID-19 pandemic.

On November 5, 2020, the Company’s Board of Directors (the “Board”) declared a distribution of $0.31 per share, payable on January 7, 2021 to stockholders of record as of December 21, 2020. On November 5, 2020, the Company’s Board also declared a supplemental distribution of $0.05 per share payable on January 7, 2021 to stockholders of record as of December 21, 2020. Going forward, in addition to a quarterly base distribution of $0.31 per share, the Board expects to declare a quarterly supplemental distribution in an amount to be determined each quarter. There can be no assurances that the Board will continue to declare a base distribution of $0.31 per share or a supplemental distribution.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Apollo Investment Corporation

Results of Review of Interim Financial Statements

We have reviewed the accompanying statement of assets and liabilities, including the schedule of investments, of Apollo Investment Corporation (the “Company”) as of September 30, 2020, and the related statements of operations and of changes in net assets for the three-month and six-month periods ended September 30, 2020 and 2019, and the statements of cash flows for the six-month periods ended September 30, 2020 and 2019, including the related notes (collectively referred to as the “interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the statement of assets and liabilities, including the schedule of investments, of the Company as of March 31, 2020, and the related statements of operations, of changes in net assets and of cash flows for the year then ended (not presented herein), and in our report dated May 21, 2020, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying statement of assets and liabilities, including the schedule of investments, as of March 31, 2020, is fairly stated, in all material respects, in relation to the statement of assets and liabilities, including the schedule of investments, from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ PricewaterhouseCoopers LLP

New York, New York

November 5, 2020

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

The following analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the notes thereto contained elsewhere in this report. Some of the statements in this report constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained herein involve risks and uncertainties, including statements as to:

•our future operating results;

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

•the impact of investments that we expect to make;

•our contractual arrangements and relationships with third parties;

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

•the ability of our portfolio companies to achieve their objectives;

•our expected financings and investments;

•the adequacy of our cash resources and working capital;

•the current and future effects of the COVID-19 pandemic on us and our portfolio companies; and

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

We generally use words such as “anticipates,” “believes,” “expects,” “intends” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason, including any factors set forth in “Risk Factors” and elsewhere in this report.

We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the Securities and Exchange Commission (“SEC”), including any annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Overview

Apollo Investment Corporation (the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” or “our”) was incorporated under the Maryland General Corporation Law in February 2004. We have elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). As such, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities of private or thinly traded public U.S. companies, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, for federal income tax purposes we have elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). Pursuant to this election and assuming we qualify as a RIC, we generally do not have to pay corporate-level federal income taxes on any income we distribute to our stockholders. We commenced operations on April 8, 2004 upon completion of our initial public offering that raised $870 million in net proceeds from selling 62 million shares of common stock at a price of $15.00 per share (20.7 million shares at a price of $45.00 per share adjusted for the one-for-three reverse stock split). Since then, and through September 30, 2020, we have raised approximately $2.21 billion in net proceeds from additional offerings of common stock and we have repurchased common stock for $223.1 million.

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Apollo Investment Management, L.P. (the “Investment Adviser” or “AIM”) is our investment adviser and an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“AGM”). The Investment Adviser, subject to the overall supervision of our Board of Directors, manages the day-to-day operations of, and provides investment advisory services to the Company. AGM and other affiliates manage other funds that may have investment mandates that are similar, in whole or in part, with ours. AIM and its affiliates may determine that an investment is appropriate both for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, AIM may determine that we should invest on a side-by-side basis with one or more other funds. We make all such investments subject to compliance with applicable regulations and interpretations, and our allocation procedures. Certain types of negotiated co-investments may be made only in accordance with the terms of the exemptive order (the “Order”) we received from the SEC permitting us to do so. Under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors must be able to reach certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction are reasonable and fair to us and our stockholders and do not involve overreaching of us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our Board of Directors’ approved criteria. In certain situations where co-investment with one or more funds managed by AIM or its affiliates is not covered by the Order, the personnel of AIM or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on allocation policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. The Order is subject to certain terms and conditions so there can be no assurance that we will be permitted to co-invest with certain of our affiliates other than in the circumstances currently permitted by regulatory guidance and the Order.

Apollo Investment Administration, LLC (the “Administrator” or “AIA”), an affiliate of AGM, provides, among other things, administrative services and facilities for the Company. In addition to furnishing us with office facilities, equipment, and clerical, bookkeeping and recordkeeping services, AIA also oversees our financial records as well as prepares our reports to stockholders and reports filed with the SEC. AIA also performs the calculation and publication of our net asset value, the payment of our expenses and oversees the performance of various third-party service providers and the preparation and filing of our tax returns. Furthermore, AIA provides on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance.

COVID-19 Developments

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) a pandemic, which has resulted in uncertainty and disruption in the global economy and financial markets. The global impact of the outbreak has been rapidly evolving, and as cases of COVID-19 have continued to be identified in additional countries, many countries have reacted by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trading, and limiting operations of non-essential businesses. Such actions are creating disruption in global supply chains, and adversely impacting many industries. The outbreak has had and could continue to have an adverse impact on economic and market conditions and some economists, investment banks and The World Bank have indicated that current indicators point to a global recession that started in February 2020. While we are unable to accurately predict the full impact that COVID-19 will have on our results from operations, financial condition, liquidity and cash flows due to numerous uncertainties, including the duration and severity of the pandemic and containment measures, our compliance with these measures has impacted our day-to-day operations and could disrupt our business and operations, as well as that of our portfolio companies, for an indefinite period of time.

Depending on the duration and extent of the disruption to the operations of our portfolio companies, we expect that certain portfolio companies will experience financial distress and possibly default on their financial obligations to us and their other capital providers. We also expect that some of our portfolio companies may significantly curtail business operations, furlough or lay off employees and terminate service providers, and defer capital expenditures if subjected to prolonged and severe financial distress, which would likely impair their business on a permanent basis. These developments would likely result in a decrease in the value of our investment in any such portfolio company.

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The COVID-19 pandemic and the related disruption and financial distress experienced by our portfolio companies may have material adverse effects on our investment income, particularly our interest income, received from our investments. In connection with the adverse effects of the COVID-19 pandemic, we may need to restructure our investments in some of our portfolio companies, which could result in reduced interest payments, an increase in the amount of PIK interest we receive, or result in permanent impairments on our investments. As of September 30, 2020, the fair value of our investments has been adversely impacted by the COVID-19 pandemic. Our investment valuations are inherently less certain than they would be absent the current and potential impacts of COVID-19 and the values assigned as of this date may materially differ from the values that may ultimately be realized. The downturn in the aviation industry from COVID-19 has resulted in Merx recording impairment losses related to aircraft leasing and impacted its financial condition. This may result in the further unrealized depreciation in value on the Company’s investments in Merx. Further, any additional write downs in the value of our investments may reduce our net asset value. These events may also limit our investment origination pipeline and may increase our future funding costs.

We have had a significant reduction in our net change in unrealized losses as of September 30, 2020 as compared to September 30, 2019, which is primarily the result of the impact of the COVID-19 pandemic. The decrease primarily resulted from an increase in the aggregate unrealized depreciation of our investment portfolio resulting from decreases in the fair value of some of our portfolio company investments primarily due to the immediate adverse economic effects of the COVID-19 pandemic and the continuing uncertainty surrounding its long-term impact, as well as the re-pricing of credit risk in the broadly syndicated credit market. We believe that the COVID-19 pandemic represents an extraordinary circumstance that materially impacts the fair value of our investments. As a result, the fair value of our portfolio investments may be further negatively impacted after September 30, 2020 by by continued duration of the adverse market, as well as circumstances and events that are not yet known.

We are also subject to financial risks, including changes in market interest rates. As of September 30, 2020, all of our debt portfolio investments bore interest at variable rates, which generally are LIBOR-based (or based on an equivalent applicable currency rate), and many of which are subject to certain floors. In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks have reduced certain interest rates and LIBOR has decreased. A prolonged reduction in interest rates will reduce our gross investment income and could result in a decrease in our net investment income if such decreases in LIBOR are not offset by a corresponding increase in the spread over LIBOR that we earn on any portfolio investments, a decrease in in our operating expenses, including with respect to our income incentive fee, or a decrease in the interest rate of our floating interest rate liabilities tied to LIBOR. See “Item 3. Quantitative and Qualitative Disclosures About Market Risk” for an analysis of the impact of hypothetical base rate changes in interest rates.

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LIBOR Developments

On July 27, 2017, the Financial Conduct Authority (“FCA”) announced that it would phase out the London Interbank Offered Rate (“LIBOR”) as a benchmark by the end of 2021 and the FCA has indicated that market participants should not rely on LIBOR being available after 2021. As an alternative to LIBOR, for example, the U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, is considering replacing U.S.-dollar LIBOR with the Secured Overnight Financing Rate ("SOFR"), a new index calculated by short-term repurchase agreements, backed by Treasury securities. Abandonment of or modifications to LIBOR could have adverse impacts on newly issued financial instruments and our existing financial instruments which reference LIBOR. Uncertainty as to the nature of alternative reference rates and as to potential changes or other reforms to LIBOR, or any changes announced with respect to such reforms, may result in a sudden or prolonged increase or decrease in the reported LIBOR rates and the value of LIBOR-based loans and securities, including those of other issuers we or our funds currently own or may in the future own. It remains uncertain how such changes would be implemented and the effects such changes would have on us, issuers of instruments in which we invest and financial markets generally.

The expected discontinuation of LIBOR could have a significant impact on our business. The dollar amount of our outstanding debt investments and borrowings that are linked to LIBOR with maturity dates after the anticipated discontinuation date of 2021 is material. We anticipate significant operational challenges for the transition away from LIBOR including, but not limited to, amending existing loan agreements with borrowers on investments that may have not been modified with fallback language and adding effective fallback language to new agreements in the event that LIBOR is discontinued before maturity. Beyond these challenges, we anticipate there may be additional risks to our current processes and information systems that will need to be identified and evaluated by us. Due to the uncertainty of the replacement for LIBOR, the potential effect of any such event on our cost of capital and net investment income cannot yet be determined. In addition, any further changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market value for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us and could have a material adverse effect on our business, financial condition and results of operations.

Investments

Our investment objective is to generate current income and capital appreciation. We invest primarily in various forms of debt investments, including secured and unsecured debt, loan investments, and/or equity in private middle-market companies. We may also invest in the securities of public companies and in structured products and other investments such as collateralized loan obligations (“CLOs”) and credit-linked notes (“CLNs”). Our portfolio is comprised primarily of investments in debt, including secured and unsecured debt of private middle-market companies that, in the case of senior secured loans, generally are not broadly syndicated and whose aggregate tranche size is typically less than $250 million. Our portfolio also includes equity interests such as common stock, preferred stock, warrants or options.

Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity for such companies, the general economic environment, and the competitive environment for the types of investments we make. As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). As of September 30, 2020, non-qualifying assets represented approximately 17.4% of the total assets of the Company.

Revenue

We generate revenue primarily in the form of interest and dividend income from the securities we hold and capital gains, if any, on investment securities that we may acquire in portfolio companies. Our debt investments, whether in the form of mezzanine or senior secured loans, generally have a stated term of five to ten years and bear interest at a fixed rate or a floating rate usually determined on the basis of a benchmark, such as the London Interbank Offered Rate (“LIBOR”), the Euro Interbank Offered Rate (“EURIBOR”), the federal funds rate, or the prime rate. Interest on debt securities is generally payable quarterly or semiannually and while U.S. subordinated debt and corporate notes typically accrue interest at fixed rates, some of our investments may include zero coupon and/or step-up bonds that accrue income on a constant yield to call or maturity basis. In addition, some of our investments provide for payment-in-kind (“PIK”) interest or dividends. Such amounts of accrued PIK interest or dividends are added to the cost of the investment on the respective capitalization dates and generally become due at maturity of the investment or upon the investment being called by the issuer. We may also generate revenue in the form of commitment, origination, structuring fees, fees for providing managerial assistance and, if applicable, consulting fees, etc.

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Expenses

For all investment professionals of AIM and their staff, when and to the extent engaged in providing investment advisory and management services to us, the compensation and routine overhead expenses of that personnel which is allocable to those services are provided and paid for by AIM. We bear all other costs and expenses of our operations and transactions, including those relating to:

•investment advisory and management fees;

•expenses incurred by AIM payable to third parties, including agents, consultants or other advisors, in monitoring our financial and legal affairs and in monitoring our investments and performing due diligence on our prospective portfolio companies;

•calculation of our net asset value (including the cost and expenses of any independent valuation firm);

•direct costs and expenses of administration, including independent registered public accounting and legal costs;

•costs of preparing and filing reports or other documents with the SEC;

•interest payable on debt, if any, incurred to finance our investments;

•offerings of our common stock and other securities;

•registration and listing fees;

•fees payable to third parties, including agents, consultants or other advisors, relating to, or associated with, evaluating and making investments;

•transfer agent and custodial fees;

•taxes;

•independent directors’ fees and expenses;

•marketing and distribution-related expenses;

•the costs of any reports, proxy statements or other notices to stockholders, including printing and postage costs;

•our allocable portion of the fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums;

•organizational costs; and

•all other expenses incurred by us or the Administrator in connection with administering our business, such as our allocable portion of overhead under the administration agreement, including rent and our allocable portion of the cost of our Chief Financial Officer, Chief Legal Officer and Chief Compliance Officer and their respective staffs.

We expect our general and administrative operating expenses related to our ongoing operations to increase moderately in dollar terms. During periods of asset growth, we generally expect our general and administrative operating expenses to decline as a percentage of our total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities, among others, may also increase or reduce overall operating expenses based on portfolio performance, interest rate benchmarks, and offerings of our securities relative to comparative periods, among other factors.

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Portfolio and Investment Activity

Our portfolio and investment activity during the three and six months ended September 30, 2020 and 2019 was as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
(in millions)*	2020		2019		2020		2019
Investments made in portfolio companies	$	105.9	$	476.7	$	243.8	$	912.0
Investments sold	(14.2)		(20.0)		(83.3)		(29.6)
Net activity before repaid investments	91.7		456.7		160.5		882.4
Investments repaid	(194.8)		(249.7)		(358.6)		(460.4)
Net investment activity	$	(103.1)	$	207.1	$	(198.1)	$	422.1
Portfolio companies at beginning of period	149		129		152		113
Number of new portfolio companies	2		14		3		35
Number of exited portfolio companies	(4)		(4)		(8)		(9)
Portfolio companies at end of period	147		139		147		139
Number of investments made in existing portfolio companies	29		48		49		54

____________________

*Totals may not foot due to rounding.

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Our portfolio composition and weighted average yields as of September 30, 2020 and March 31, 2020 were as follows:

	September 30, 2020		March 31, 2020
Portfolio composition, at fair value:
First lien secured debt	77	%	81	%
Second lien secured debt	11	%	13	%
Total secured debt	89	%	94	%
Unsecured debt	1	%	—
Structured products and other	0	%	0	%
Preferred equity	0	%	0	%
Common equity/interests and warrants	10	%	6	%
Weighted average yields, at amortized cost (1):
First lien secured debt (2)	7.9	%	8.5	%
Second lien secured debt (2)	9.8	%	10.2	%
Secured debt portfolio (2)	8.1	%	8.7	%
Unsecured debt portfolio (2)	5.3	%	—
Total debt portfolio (2)	8.1	%	8.7	%
Total portfolio (3)	6.7	%	8.0	%
Interest rate type, at fair value (4):
Fixed rate amount	—		—
Floating rate amount	$2.0 billion		$2.2 billion
Fixed rate, as percentage of total	—		—
Floating rate, as percentage of total	100	%	100	%
Interest rate type, at amortized cost (4):
Fixed rate amount	—		—
Floating rate amount	$2.1 billion		$2.3 billion
Fixed rate, as percentage of total	—		—
Floating rate, as percentage of total	100	%	100	%

____________________

(1)An investor’s yield may be lower than the portfolio yield due to sales loads and other expenses.

(2)Exclusive of investments on non-accrual status.

(3)Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status.

(4)The interest rate type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status.

Since the initial public offering of Apollo Investment in April 2004 and through September 30, 2020, invested capital totaled $21.5 billion in 541 portfolio companies. Over the same period, Apollo Investment completed transactions with more than 100 different financial sponsors.

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Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, gains and losses. Changes in the economic environment, financial markets, credit worthiness of portfolio companies and any other parameters used in determining such estimates could cause actual results to differ materially. In addition to the discussion below, our critical accounting policies are further described in the notes to the financial statements.

Fair Value Measurements

The Company follows guidance in ASC 820, Fair Value Measurement (“ASC 820”), where fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are determined within a framework that establishes a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

Level 1: Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3: Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The level assigned to the investment valuations may not be indicative of the risk or liquidity associated with investing in such investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may differ materially from the values that would be received upon an actual disposition of such investments.

As of September 30, 2020, $2.59 billion or 99.98% of the Company’s investments were classified as Level 3. The high proportion of Level 3 investments relative to our total investments is directly related to our investment philosophy and target portfolio, which consists primarily of long-term secured debt, as well as unsecured and mezzanine positions of private middle-market companies. A fundamental difference exists between our investments and those of comparable publicly traded fixed income investments, namely high-yield bonds, and this difference affects the valuation of our private investments relative to comparable publicly traded instruments.

Senior secured loans, or senior loans, are higher in the capital structure than high-yield bonds, and are typically secured by assets of the borrowing company. This improves their recovery prospects in the event of default and affords senior loans a structural advantage over high-yield bonds. Many of the Company’s investments are also privately negotiated and contain covenant protections that limit the issuer to take actions that could harm us as a creditor. High-yield bonds typically do not contain such covenants.

Given the structural advantages of capital seniority and covenant protection, the valuation of our private debt portfolio is driven more by investment specific credit factors than movements in the broader debt capital markets. Each security is evaluated individually and as indicated below, we value our private investments based upon a multi-step valuation process, including valuation recommendations from independent valuation firms.

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Investment Valuation Process

Under procedures established by our Board of Directors, we value investments, including certain secured debt, unsecured debt, and other debt securities with maturities greater than 60 days, for which market quotations are readily available, at such market quotations (unless they are deemed not to represent fair value). We attempt to obtain market quotations from at least two brokers or dealers (if available, otherwise from a principal market maker, primary market dealer or other independent pricing service). We utilize mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are deemed not to represent fair value, we typically utilize independent third party valuation firms to assist us in determining fair value. Accordingly, such investments go through our multi-step valuation process as described below. In each case, our independent valuation firms consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such investments. Investments purchased within the quarter before the valuation date and debt investments with remaining maturities of 60 days or less may each be valued at cost with interest accrued or discount accreted/premium amortized to the date of maturity (although they are typically valued at available market quotations), unless such valuation, in the judgment of our Investment Adviser, does not represent fair value. In this case, such investments shall be valued at fair value as determined in good faith by or under the direction of our Board of Directors, including using market quotations where available. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of our Board of Directors. Such determination of fair values may involve subjective judgments and estimates.

With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, our Board of Directors has approved a multi-step valuation process each quarter, as described below:

1.Our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of our Investment Adviser who are responsible for the portfolio investment.

2.Preliminary valuation conclusions are then documented and discussed with senior management of our Investment Adviser.

3.Independent valuation firms are engaged by our Board of Directors to conduct independent appraisals by reviewing our Investment Adviser’s preliminary valuations and then making their own independent assessment.

4.The Audit Committee of the Board of Directors reviews the preliminary valuation of our Investment Adviser and the valuation prepared by the independent valuation firms and responds, if warranted, to the valuation recommendation of the independent valuation firms.

5.The Board of Directors discusses valuations and determines in good faith the fair value of each investment in our portfolio based on the input of our Investment Adviser, the applicable independent valuation firm, and the Audit Committee of the Board of Directors.

6.For Level 3 investments entered into within the current quarter, the cost (purchase price adjusted for accreted original issue discount/amortized premium) or any recent comparable trade activity on the security investment shall be considered to reasonably approximate the fair value of the investment, provided that no material change has since occurred in the issuer’s business, significant inputs or the relevant environment.

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Investments determined by these valuation procedures which have a fair value of less than $1 million during the prior fiscal quarter may be valued based on inputs identified by the Investment Adviser without the necessity of obtaining valuation from an independent valuation firm, if once annually an independent valuation firm using the procedures described herein provides a valuation. Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, seniority of investment in the investee company’s capital structure, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When readily available, broker quotations and/or quotations provided by pricing services are considered in the valuation process of independent valuation firms. During the six months ended September 30, 2020, there were no significant changes to the Company’s valuation techniques and related inputs considered in the valuation process.

Investment Income Recognition

The Company records interest and dividend income, adjusted for amortization of premium and accretion of discount, on an accrual basis. Some of our loans and other investments, including certain preferred equity investments, may have contractual PIK interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. Certain PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point the Company believes PIK is not expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the related receivable through interest or dividend income, respectively. The Company does not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if the Company believes that PIK is expected to be realized.

Investments that are expected to pay regularly scheduled interest and/or dividends in cash are generally placed on non-accrual status when principal or interest/dividend cash payments are past due 30 days or more and/or when it is no longer probable that principal or interest/dividend cash payments will be collected. Such non-accrual investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining interest or dividend obligations. Interest or dividend cash payments received on non-accrual designated investments may be recognized as income or applied to principal depending upon management’s judgment.

Loan origination fees, original issue discount (“OID”), and market discounts are capitalized and accreted into interest income over the respective terms of the applicable loans using the effective interest method or straight-line, as applicable. Upon the prepayment of a loan, prepayment premiums, any unamortized loan origination fees, OID, or market discounts are recorded as interest income. Other income generally includes amendment fees, administrative fees, management fees, bridge fees, and structuring fees which are recorded when earned.

The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. Such assumptions include the rate and timing of principal and interest receipts (which may be subject to prepayments and defaults) of the underlying pools of assets. These assumptions are updated on at least a quarterly basis to reflect changes related to a particular security, actual historical data, and market changes. A structured product investment typically has an underlying pool of assets. Payments on structured product investments are payable solely from the cash flows from such assets. As such any unforeseen event in these underlying pools of assets might impact the expected recovery and future accrual of income.

Expenses

Expenses include management fees, performance-based incentive fees, insurance expenses, administrative service fees, legal fees, directors’ fees, audit and tax service expenses, third-party valuation fees and other general and administrative expenses. Expenses are recognized on an accrual basis.

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Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses)

We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized gain (loss) reflects the net change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized gains or losses.

Within the context of these critical accounting policies, we are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported.

Results of Operations

Operating results for the three and six months ended September 30, 2020 and 2019 were as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
(in millions)*	2020		2019		2020		2019
Investment Income
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	52.6	$	63.8	$	105.8	$	123.4
Dividend income	1.2		2.8		2.4		3.1
PIK interest income	0.9		1.6		2.8		7.2
Other income	0.2		2.2		0.5		3.1
Total investment income	$	54.9	$	70.3	$	111.4	$	136.8
Expenses
Management and performance-based incentive fees, net of amounts waived	$	9.3	$	12.1	$	18.8	$	21.6
Interest and other debt expenses, net of reimbursements	13.8		18.7		29.2		36.2
Administrative services expense, net of reimbursements	1.1		1.5		2.2		3.1
Other general and administrative expenses	2.8		2.3		5.2		5.6
Net Expenses	$	27.0	$	34.6	$	55.4	$	66.6
Net Investment Income	$	27.9	$	35.7	$	56.1	$	70.3
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses)	$	(3.0)	$	(11.5)	$	(11.4)	$	(10.2)
Net change in unrealized gains (losses)	8.4		(17.2)		(8.4)		(29.2)
Net Realized and Change in Unrealized Gains (Losses)	$	5.4	$	(28.7)	$	(19.9)	$	(39.4)
Net Increase in Net Assets Resulting from Operations	$	33.3	$	7.1	$	36.3	$	30.9
Net Investment Income on Per Average Share Basis (1)	$	0.43	$	0.53	$	0.86	$	1.03
Earnings per share — basic (1)	$	0.51	$	0.10	$	0.56	$	0.45

____________________

*Totals may not foot due to rounding.

(1)Based on the weighted average number of shares outstanding for the period presented.

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Total Investment Income

For the three months ended September 30, 2020 as compared to the three months ended September 30, 2019

The decrease in total investment income for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 was primarily driven by the decrease in total interest income (including PIK) of $11.9 million. The decrease in total interest income (including PIK) was due to a decrease in the average yield for the total debt portfolio, from 9.6% for three months ended September 30, 2019 to 8.1% for three months ended September 30, 2020, and a lower income-bearing investment portfolio. The $1.6 million decrease in dividend income was due to a decrease in dividends received from Merx Aviation Finance, LLC. Furthermore, there was a decrease in other income of $2.0 million due to lower amendment fees and bridge fees.

For the six months ended September 30, 2020 as compared to the six months ended September 30, 2019

The decrease in total investment income for the six months ended September 30, 2020 compared to the six months ended September 30, 2019 was primarily driven by the decrease in total interest income (including PIK) of $21.9 million. The decrease in total interest income (including PIK) was primarily due to a decrease in the average yield for the total debt portfolio, from 9.8% for six months ended September 30, 2019 to 8.4% for six months ended September 30, 2020, and a lower income-bearing investment portfolio. Additionally, there was a decrease in prepayment fees and income recognized from the acceleration of discount, premium, or deferred fees on repaid investments which totaled $4.9 million and $2.3 million for the six months ended September 30, 2019 and six months ended September 30, 2020, respectively. The $0.7 million decrease in dividend income was primarily due to a decrease in dividends received from Merx Aviation Finance, LLC. Furthermore, there was a decrease in other income of $2.6 million due to lower amendment fees and bridge fees.

Net Expenses

For the three months ended September 30, 2020 as compared to the three months ended September 30, 2019

The decrease in net expenses for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 was due to the decrease in interest and other debt expenses of $4.9 million and a decrease in management and performance-based incentive fees (net of amounts waived) of $2.8 million. The decrease in interest and other debt expenses was attributed to a decrease in total annualized cost of debt from 4.97% for the three months ended September 30, 2019 to 3.30% for the three months ended September 30, 2020. This was partially offset by an increase in the average debt outstanding and net leverage from $1.49 billion and 1.24x, respectively during the three months ended September 30, 2019, to $1.66 billion and 1.56x, respectively during the three months ended September 30, 2020. The decrease of $2.8 million in management and performance-based incentive fees (net of amounts waived) was due to a decrease in the investment portfolio and an incentive fee cap for fees paid in prior periods. Furthermore, the increase in other general and administrative services expenses was due to a increase in legal fees from $0.8 million for the three months ended September 30, 2019 to $1.0 million for the three months ended September 30, 2020.

For the six months ended September 30, 2020 as compared to the six months ended September 30, 2019

The decrease in net expenses for the six months ended September 30, 2020 compared to the six months ended September 30, 2019 was primarily due to the decrease in interest and other debt expenses of $7.0 million and the decrease of management and performance-based incentive fees (net of amounts waived) of $2.8 million. The decrease in interest and other debt expenses was was primarily attributed to a decrease in total annualized cost of debt from 5.26% for the six months ended September 30, 2019 to 3.36% for the six months ended September 30, 2020. This was partially offset by an increase in the average debt outstanding and net leverage from $1.37 billion and 1.24x, respectively during the six months ended September 30, 2019, to $1.73 billion and 1.56x, respectively during the six months ended September 30, 2020. The decrease of $2.8 million in management and performance-based incentive fees (net of amounts waived) was due to to a decrease in the investment portfolio and an incentive fee cap for fees paid in prior periods.

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Net Realized Gains (Losses)

For the three months ended September 30, 2020 as compared to the three months ended September 30, 2019

During the three months ended September 30, 2020, we recognized gross realized gains of $0.7 million and gross realized losses of $3.7 million, resulting in net realized losses of $3.0 million. Significant realized gains (losses) for the three months ended September 30, 2020 are summarized below:

(in millions)	Net Realized Gain (Loss)
KLO Holdings, LLC	$	(3.7)

During the three months ended September 30, 2019, we recognized gross realized gains of $0.7 million and gross realized losses of $12.2 million, resulting in net realized loss of $11.5 million. Significant realized gains (losses) for the three months ended September 30, 2019 are summarized below:

(in millions)	Net Realized Gain (Loss)
Crowne Automotive	$	(6.4)

For the six months ended September 30, 2020 as compared to the six months ended September 30, 2019

During the six months ended September 30, 2020, we recognized gross realized gains of $0.9 million and gross realized losses of $12.3 million, resulting in net realized losses of $11.4 million. Significant realized gains (losses) for the six months ended September 30, 2020 are summarized below:

(in millions)	Net Realized Gain (Loss)
ZPower, LLC	$	(6.1)
KLO Holdings, LLC	(3.7)

During the six months ended September 30, 2019, we recognized gross realized gains of $1.8 million and gross realized losses of $12.0 million, resulting in net realized loss of $10.2 million. Significant realized gains (losses) for the six months ended September 30, 2019 are summarized below:

(in millions)	Net Realized Gain (Loss)
SquareTwo (CA Holdings, Collect America, Ltd.)	$	1.1
Crowne Automotive	(6.4)

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Net Change in Unrealized Gains (Losses)

For the three months ended September 30, 2020 as compared to the three months ended September 30, 2019

During the three months ended September 30, 2020, we recognized gross unrealized gains of $34.3 million and gross unrealized losses of $26.0 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized gains of $8.4 million. Significant changes in unrealized gains (losses) for the three months ended September 30, 2020 are summarized below:

(in millions)	Net Change in Unrealized Gain (Loss)
KLO Holdings, LLC	$	6.3
NFA Group	1.9
CARE Fertility	1.1
PIB Group	1.1
GoHealth	1.0
ProPharma	1.0
Merx Aviation Finance, LLC	(5.9)
Spotted Hawk	(4.7)
Paper Source	(1.7)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)	(1.2)

During the three months ended September 30, 2019, we recognized gross unrealized gains of $19.1 million and gross unrealized losses of $36.3 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized gains of $17.2 million. Significant changes in unrealized gains (losses) for the three months ended September 30, 2019 are summarized below:

(in millions)	Net Change in Unrealized Gain (Loss)
Crowne Automotive	$	6.7
AMP Solar Group, Inc.	1.6
Asset Repackaging Trust Six B.V. (Israel Electric)	1.5
Spotted Hawk	(11.5)
KLO Holdings, LLC	(7.1)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)	(2.7)
Renew Financial LLC (f/k/a Renewable Funding, LLC)	(2.0)

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For the six months ended September 30, 2020 as compared to the six months ended September 30, 2019

During the six months ended September 30, 2020, we recognized gross unrealized gains of $55.3 million and gross unrealized losses of $63.7 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized losses of $8.4 million. Significant changes in unrealized gains (losses) for the six months ended September 30, 2020 are summarized below:

(in millions)	Net Change in Unrealized Gain (Loss)
KLO Holdings, LLC	$	6.4
ZPower, LLC	4.8
NFA Group	2.3
CT Technologies Intermediate Holdings, Inc	1.8
PIB Group	1.5
McLarens	1.4
Arlington	1.4
CARE Fertility	1.3
GoHealth	1.3
ProPharma	1.2
Merx Aviation Finance, LLC	(10.2)
Dynamic Product Tankers (Prime), LLC	(9.5)
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)	(9.1)
Spotted Hawk	(5.2)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)	(4.4)
ChyronHego Corporation	(2.5)
Paper Source	(2.5)
Garden Fresh	(2.4)
Solarplicity Group Limited (f/k/a AMP Solar UK)	(1.4)
Learfield Communications	(1.2)

During the six months ended September 30, 2019, we recognized gross unrealized gains of $25.7 million and gross unrealized losses of $54.9 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized gains of $29.2 million. Significant changes in unrealized gains (losses) for the six months ended September 30, 2019 are summarized below:

(in millions)	Net Change in Unrealized Gain (Loss)
Crowne Automotive	$	7.1
Sprint Industrial Holdings, LLC.	2.2
AMP Solar Group, Inc.	1.8
Merx Aviation Finance, LLC	1.4
Asset Repackaging Trust Six B.V. (Israel Electric)	1.3
Spotted Hawk	(19.3)
KLO Holdings	(8.5)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)	(5.3)
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)	(4.7)
Securus Technologies Holdings, Inc.	(1.3)
CT Technologies Intermediate Holdings, Inc	(1.3)
CARE Fertility	(1.2)
Renew Financial LLC (f/k/a Renewable Funding, LLC)	(1.1)
Bumble Bee Foods	(1.0)

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Liquidity and Capital Resources

The Company’s liquidity and capital resources are generated and generally available through periodic follow-on equity and debt offerings, our Senior Secured Facility (as defined in Note 6 to the financial statements), our senior secured notes, our senior unsecured notes, investments in special purpose entities in which we hold and finance particular investments on a non-recourse basis, as well as from cash flows from operations, investment sales of liquid assets and repayments of senior and subordinated loans and income earned from investments.

We believe that our current cash and cash equivalents on hand, our short-term investments, our available borrowing capacity under our Senior Secured Facility and our anticipated cash flows from operations will be adequate to meet our cash needs for our daily operations for at least the next twelve months. This "Liquidity and Capital Resources" section should be read in conjunction with "COVID-19 Developments" section above.

Cash Equivalents

The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less from the date of purchase would qualify, with limited exceptions. The Company deems that certain money market funds, U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities would qualify as cash equivalents (See Note 2 to the financial statements.) At the end of each fiscal quarter, we consider taking proactive steps utilizing cash equivalents with the objective of enhancing our investment flexibility during the following quarter, pursuant to Section 55 of the 1940 Act. More specifically, we may purchase U.S. Treasury bills from time-to-time on the last business day of the quarter and typically close out that position on the following business day, settling the sale transaction on a net cash basis with the purchase, subsequent to quarter end. Apollo Investment may also utilize repurchase agreements or other balance sheet transactions, including drawing down on our Senior Secured Facility, as we deem appropriate. The amount of these transactions or such drawn cash for this purpose is excluded from total assets for purposes of computing the asset base upon which the management fee is determined.

Debt

See Note 6 to the financial statements for information on the Company’s debt.

The following table shows the contractual maturities of our debt obligations as of September 30, 2020:

	Payments Due by Period
(in millions)	Total		Less than 1 Year		1 to 3 Years		3 to 5 Years		More than 5 Years
Senior Secured Facility	$	1,254.6	$	—	$	—	$	1,254.6	$	—
2025 Notes	350.0		—		—		350.0		—
Total Debt Obligations	$	1,604.6	$	—	$	—	$	1,604.6	$	—

____________________

(1)As of September 30, 2020, aggregate lender commitments under the Senior Secured Facility totaled $1.81 billion and $555.2 million of unused capacity. As of September 30, 2020, there were $0.2 million of letters of credit issued under the Senior Secured Facility as shown as part of total commitments in Note 8 to the financial statements.

Stockholders’ Equity

See Note 7 to the financial statements for information on the Company’s public offerings and share repurchase plans.

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Distributions

Distributions paid to stockholders during the three and six months ended September 30, 2020 totaled $29.3 million ($0.45 per share) and $58.7 million ($0.90 per share), respectively. Distributions paid to stockholders during the three and six months ended September 30, 2019 totaled $30.6 million ($0.45 per share) and $61.7 million ($0.90 per share), respectively. For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. Although the tax character of distributions paid to stockholders through September 30, 2020 may include return of capital, the exact amount cannot be determined at this point. The final determination of the tax character of distributions will not be made until we file our tax return for the tax year ended March 31, 2021. Tax characteristics of all distributions will be reported to stockholders on Form 1099 after the end of the calendar year. Our quarterly distributions, if any, will be determined by our Board of Directors.

To maintain our RIC status, we must distribute at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. Although we currently intend to distribute realized net capital gains (i.e., net long-term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment. Currently, we have substantial net capital loss carryforwards and consequently do not expect to generate cumulative net capital gains in the foreseeable future.

We maintain an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a dividend, then stockholders’ cash dividends will be automatically reinvested in additional shares of our common stock, unless they specifically “opt out” of the dividend reinvestment plan so as to receive cash dividends.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, due to the asset coverage test applicable to us as a BDC, we may in the future be limited in our ability to make distributions. Also, our revolving credit facility may limit our ability to declare dividends if we default under certain provisions or fail to satisfy certain other conditions. If we do not distribute a certain percentage of our income annually, we may suffer adverse tax consequences, including possible loss of the tax benefits available to us as a RIC. In addition, in accordance with GAAP and tax regulations, we include in income certain amounts that we have not yet received in cash, such as contractual PIK, which represents contractual interest added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may not be able to meet the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC.

With respect to the distributions to stockholders, income from origination, structuring, closing, commitment and other upfront fees associated with investments in portfolio companies is treated as taxable income and accordingly, distributed to stockholders.

PIK Income

For the three and six months ended September 30, 2020, PIK income totaled $0.9 million and $2.8 million on total investment income of $54.9 million and $111.6 million respectively. For the three and six months ended September 30, 2019, PIK income totaled $1.6 million and $7.2 million on total investment income of $70.3 million and $136.8 million respectively. In order to maintain the Company’s status as a RIC, this non-cash source of income must be paid out to stockholders annually in the form of distributions, even though the Company has not yet collected the cash. See Note 5 to the financial statements for more information on the Company’s PIK income.

Related Party Transactions

See Note 3 to the financial statements for information on the Company’s related party transactions.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. Uncertainty with respect to the economic effects of the COVID-19 outbreak has introduced significant volatility in the financial markets, and the effects of this volatility could materially impact our market risks, including those listed below. For additional information concerning the COVID-19 pandemic and its potential impact on our business and our operating results, see Part II - Other information, Item 1A. Risk Factors.

Investment valuation risk

Because there is not a readily available market value for most of the investments in our portfolio, we value substantially all of our portfolio investments at fair value as determined in good faith by our board of directors based on, among other things, the input of our management and audit committee and independent valuation firms that have been engaged at the direction of our board of directors to assist in the valuation of each portfolio investment without a readily available market quotation (with certain de minimis exceptions). Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” and “—Fair Value Measurements” as well as Notes 2 and 5 to our financial statements for the three and six months ended September 30, 2020, for more information relating to our investment valuation.

112

Interest Rate Risk

Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

As of September 30, 2020, all of our debt portfolio investments bore interest at variable rates, which generally are LIBOR-based (or based on an equivalent applicable currency rate) and typically have durations of one to six months after which they reset to current market interest rates, and many of which are subject to certain floors. Further, our Senior Secured Facility bears interest at LIBOR rates with no interest rate floors, while the 2025 Notes bears interest at a fixed rate. On July 27, 2017, the United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced that it intends to phase out LIBOR by the end of 2021. Potential changes, or uncertainty related to such potential changes, may adversely affect the market for LIBOR-based securities, including our portfolio of LIBOR-indexed, floating-rate debt securities, or the cost of our borrowings. Please see Part 1 of our annual report on Form 10-k for the year ended March 31, 2020, “Item 1A. Risk Factors—Risks Relating to the Current Environment—Uncertainty relating to the LIBOR calculation process may adversely affect the value of our portfolio of the LIBOR-indexed, floating-rate debt securities in our portfolio or the cost of our borrowings” and Part II, Item 1A below.

We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

The following table shows the estimated annual impact on net investment income of base rate changes in interest rates (considering interest rate flows for variable rate instruments) to our loan portfolio and outstanding debt as of September 30, 2020, assuming no changes in our investment and borrowing structure:

Basis Point Change	Net Investment Income			Net Investment Income Per Share
Up 200 basis points	$	2.1	million	$	0.030
Up 100 basis points	(4.3)		million	(0.070)
Up 50 basis points	(3.8)		million	(0.060)
Down 25 basis points	0.2		million	0.000

We may hedge against interest rate fluctuations from time-to-time by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio of investments.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of September 30, 2020 (the end of the period covered by this report), we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

Changes in Internal Control Over Financial Reporting

Management has not identified any change in the Company’s internal control over financial reporting that occurred during the second fiscal quarter of 2021 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may become involved in various investigations, claims and legal proceedings that arise in the ordinary course of our business. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While we do not expect that the resolution of these matters if they arise would materially affect our business, financial condition or results of operations, resolution will be subject to various uncertainties and could result in the expenditure of significant financial and managerial resources.

On May 20, 2013, the Company was named as a defendant in a complaint by the bankruptcy trustee of DSI Renal Holdings and related companies (“DSI”). The complaint alleges, among other things, that the Company participated in a “fraudulent conveyance” involving a restructuring and subsequent sale of DSI in 2010 and 2011 and aided and abetted a breach of fiduciary duty. The complaint seeks, jointly and severally from all defendants, (1) damages of approximately $425 million plus interest, of which the Company’s share would be approximately $41 million plus interest, and the return of 9,000 shares of common stock of DSI obtained by the Company in the restructuring and sale and (2) punitive damages. At this point in time, the Company is unable to assess whether it may have any liability in this action. On July 20, 2017, the United States Bankruptcy Court for the District of Delaware, where the action is pending, granted in part and denied in part the Company’s (and other defendants’) motion to dismiss the complaint.

Discovery has concluded, and on April 30, 2019, defendants (including the Company) filed motions for partial summary judgment. On February 4, 2020, the court granted defendants’ summary judgment motion to cap exposure on fraudulent transfer claims at the amount of creditor claims in the estate; it denied as premature that motion with respect to common law claims. Defendants moved to reconsider that decision, which motion was denied. On March 30, 2020, the court granted two additional summary judgment motions relevant to the Company. With respect to the first motion, the court held that the trustee could not recover from defendants value that was never property of the debtor. With respect to the second motion, the Court held that the trustee could not recover from defendants payments that were made on account of debt. The other summary judgment motions relevant to the Company remain pending.

On November 27, 2019, Healthclaim Recovery LLC ("Healthclaim") (an entity formed by the adversary proceeding defendants, including the Company) filed objections to two creditors' claims. On January 9, 2020, the two creditors whose claims Healthclaim objected to and the Trustee filed motions to stay the Court's consideration of Healthclaim's objections. On February 25, 2020, the Court heard oral argument on the motions to stay and granted the creditors’ and Trustee’s motions and stayed consideration of Healthclaim’s objections.

On October 15, 2020, the Court heard oral argument on the defendants’ remaining motions for summary judgment and took the motions under advisement. The Company has not made any determination that this action is or may be material to the Company and intends to vigorously defend itself.

Item 1A. Risk Factors

In addition to the risk factor below and other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended March 31, 2020, which could materially affect our business, financial condition and/or operating results. These risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

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Changes in the method of determining LIBOR, or the replacement of LIBOR with an alternative reference rate, may adversely affect our credit arrangements and our collateralized loan obligation transactions.

On July 27, 2017, the Financial Conduct Authority (“FCA”) announced that it would phase out the London Interbank Offered Rate (“LIBOR”) as a benchmark by the end of 2021. It is unclear whether new methods of calculating LIBOR will be established such that it continues to exist after 2021 and has indicated that market participants should not rely on LIBOR being available after 2021. As an alternative to LIBOR, for example, the U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, is considering replacing U.S.-dollar LIBOR with the Secured Overnight Financing Rate ("SOFR"), a new index calculated by short-term repurchase agreements, backed by Treasury securities. Abandonment of or modifications to LIBOR could have adverse impacts on newly issued financial instruments and our existing financial instruments which reference LIBOR. While some instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate setting methodology, not all instruments may have such provisions and there is significant uncertainty regarding the effectiveness of any such alternative methodologies. Abandonment of or modifications to LIBOR could lead to significant short-term and long-term uncertainty and market instability. If LIBOR ceases to exist, we and our portfolio companies may need to amend or restructure our existing LIBOR-based debt instruments and any related hedging arrangements that extend beyond 2021, which may be difficult, costly and time consuming. In addition, from time to time we invest in floating rate loans and investment securities whose interest rates are indexed to LIBOR. Uncertainty as to the nature of alternative reference rates and as to potential changes or other reforms to LIBOR, or any changes announced with respect to such reforms, may result in a sudden or prolonged increase or decrease in the reported LIBOR rates and the value of LIBOR-based loans and securities, including those of other issuers we or our funds currently own or may in the future own. It remains uncertain how such changes would be implemented and the effects such changes would have on us, issuers of instruments in which we invest and financial markets generally.

The expected discontinuation of LIBOR could have a significant impact on our business. The dollar amount of our outstanding debt investments and borrowings that are linked to LIBOR with maturity dates after the anticipated discontinuation date of 2021 is material. We anticipate significant operational challenges for the transition away from LIBOR including, but not limited to, amending existing loan agreements with borrowers on investments that may have not been modified with fallback language and adding effective fallback language to new agreements in the event that LIBOR is discontinued before maturity. Beyond these challenges, we anticipate there may be additional risks to our current processes and information systems that will need to be identified and evaluated by us. Due to the uncertainty of the replacement for LIBOR, the potential effect of any such event on our cost of capital and net investment income cannot yet be determined. In addition, the cessation of LIBOR could:

•Adversely impact the pricing, liquidity, value of, return on and trading for a broad array of financial products, including any LIBOR-linked securities, loans and derivatives that are included in our assets and liabilities;

•Require extensive changes to documentation that governs or references LIBOR or LIBOR-based products, including, for example, pursuant to time-consuming renegotiations of existing documentation to modify the terms of outstanding investments;

•Result in inquiries or other actions from regulators in respect of our preparation and readiness for the replacement of LIBOR with one or more alternative reference rates;

•Result in disputes, litigation or other actions with portfolio companies, orother counterparties, regarding the interpretation and enforceability of provisions in our LIBOR-based investments, such as fallback language or other related provisions, including, in the case of fallbacks to the alternative reference rates, any economic, legal, operational or other impact resulting from the fundamental differences between LIBOR and the various alternative reference rates;

•Require the transition and/or development of appropriate systems and analytics to effectively transition our risk management processes from LIBOR-based products to those based on one or more alternative reference rates, which may prove challenging given the limited history of the proposed alternative reference rates; and

•Cause us to incur additional costs in relation to any of the above factors.

There is no guarantee that a transition from LIBOR to an alternative will not result in financial market disruptions, significant increases in benchmark rates, or borrowing costs to borrowers, any of which could have a material adverse effect on our business, result of operations, financial condition, and unit price. In addition, the transition to a successor rate could potentially cause (i) increased volatility or illiquidity in markets for instruments that currently rely on LIBOR, (ii) a reduction in the value of certain instruments held by the Company, or (iii) reduced effectiveness of related Company transactions, such as hedging. It remains uncertain how such changes would be implemented and the effects such changes would have on the Company, issuers of instruments in which the Company invests and financial markets generally.

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

Unregistered Sales of Equity Securities

None.

Issuer Purchases of Equity Securities

The Company adopted the following plans, approved by the Board of Directors, for the purpose of repurchasing its common stock in accordance with applicable rules specified in the 1934 Act (the “Repurchase Plans”):

Date of Agreement/Amendment	Maximum Cost of Shares That May Be Repurchased			Cost of Shares Repurchased			Remaining Cost of Shares That May Be Repurchased
August 5, 2015	$	50.0	million	$	50.0	million	$	—
December 14, 2015	50.0		million	50.0		million	—
September 14, 2016	50.0		million	50.0		million	—
October 30, 2018	50.0		million	50.0		million	—
February 6, 2019	50.0		million	23.1		million	26.9		million
Total as of September 30, 2020	$	250.0	million	$	223.1	million	$	26.9	million

The Repurchase Plans were designed to allow the Company to repurchase its shares both during its open window periods and at times when it otherwise might be prevented from doing so under applicable insider trading laws or because of self-imposed trading blackout periods. A broker selected by the Company will have the authority under the terms and limitations specified in an agreement with the Company to repurchase shares on the Company’s behalf in accordance with the terms of the Repurchase Plans. Repurchases are subject to SEC regulations as well as certain price, market volume and timing constraints specified in the Repurchase Plans. Pursuant to the Repurchase Plans, the Company may from time to time repurchase a portion of its shares of common stock and the Company is hereby notifying stockholders of its intention as required by applicable securities laws.

Under the Repurchase Plans described above, the Company allocated the following amounts to be repurchased in accordance with SEC Rule 10b5-1 (the “10b5-1 Repurchase Plans”):

Effective Date	Termination Date	Amount Allocated to 10b5-1 Repurchase Plans
September 15, 2015	November 5, 2015	$	5.0	million
January 1, 2016	February 5, 2016	10.0		million
April 1, 2016	May 19, 2016	5.0		million
July 1, 2016	August 5, 2016	15.0		million
September 30, 2016	November 8, 2016	20.0		million
January 4, 2017	February 6, 2017	10.0		million
March 31, 2017	May 19, 2017	10.0		million
June 30, 2017	August 7, 2017	10.0		million
October 2, 2017	November 6, 2017	10.0		million
January 3, 2018	February 8, 2018	10.0		million
June 18, 2018	August 9, 2018	10.0		million
September 17, 2018	October 31, 2018	10.0		million
December 12, 2018	February 7, 2019	10.0		million
February 25, 2019	May 17, 2019	25.0		million
March 18, 2019	May 17, 2019	10.0		million
June 4, 2019	August 7, 2019	25.0		million
June 17, 2019	August 7, 2019	20.0		million
September 16, 2019	November 6, 2019	20.0		million
December 6, 2019	February 5, 2020	25.0		million
December 16, 2019	February 5, 2020	15.0		million
March 12, 2020	March 19, 2020	20.0		million

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The following table presents information with respect to the Company’s purchases of its common stock since adoption of the Repurchase Plans through September 30, 2020:

Month	Total Number of Shares Purchased	Average Price Paid Per Share*		Total Number of Shares Purchased as Part of Publicly Announced Plans	Maximum Dollar Value of Shares That May Yet Be Purchased Under Publicly Announced Plans
August 2015	510,000	$	19.71	510,000	$	40.0	million
September 2015	603,466	18.46		603,466	28.8		million
November 2015	1,116,666	18.10		1,116,666	8.6		million
December 2015	627,443	17.58		627,443	47.6		million
January 2016	670,708	14.91		670,708	37.6		million
June 2016	362,933	16.73		362,933	31.5		million
July 2016	16,491	16.53		16,491	31.2		million
August 2016	596,294	17.67		596,294	20.7		million
September 2016	411,523	18.13		411,523	63.2		million
October 2016	527,417	17.82		527,417	53.8		million
November 2016	239,289	17.45		239,289	49.6		million
August 2017	33,333	17.96		33,333	49.0		million
September 2017	186,767	17.98		186,767	45.7		million
October 2017	144,867	17.96		144,867	43.1		million
November 2017	64,500	17.79		64,500	41.9		million
December 2017	50,100	17.89		50,100	41.0		million
January 2018	577,386	17.32		577,386	31.0		million
February 2018	70,567	16.23		70,567	29.9		million
May 2018	263,667	17.12		263,667	25.4		million
June 2018	198,601	16.94		198,601	22.0		million
July 2018	8,867	16.75		8,867	21.9		million
August 2018	502,767	17.11		502,767	13.3		million
September 2018	444,467	16.54		444,467	5.9		million
October 2018	160,800	16.46		160,800	53.3		million
November 2018	595,672	15.81		595,672	43.9		million
December 2018	741,389	13.49		741,359	33.9		million
February 2019	19,392	15.16		19,392	83.6		million
March 2019	291,426	15.40		291,426	79.1		million
April 2019	44,534	15.23		44,534	78.4		million
May 2019	298,026	15.93		298,026	73.6		million
June 2019	607,073	15.97		607,073	63.9		million
July 2019	89,610	16.10		89,610	62.5		million
August 2019	758,020	16.15		758,020	50.3		million
September 2019	32,371	16.26		32,371	49.7		million
October 2019	495,464	15.65		495,464	42.0		million
November 2019	6,147	15.91		6,147	41.9		million
March 2020	1,286,565	11.62		1,286,565	26.9		million
Total	13,654,608	$	16.34	13,654,578

____________________

* The average price per share is inclusive of commissions.

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Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

(a)    Exhibits

3.1(a)	Articles of Amendment (1)
3.1(b)	Articles of Amendment and Restatement (2)
3.1(c)	Articles of Amendment (4)
3.1(d)	Articles of Amendment (5)
3.2	Fifth Amended and Restated Bylaws (3)
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934*
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934*
32.1	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)*

_________________________

*Filed herewith.

(1)Incorporated by reference from the Registrant’s pre-effective Amendment No. 1 to the Registration Statement under the Securities Act of 1933, as amended, as Form N-2, filed on June 20, 2005.

(2)Incorporated by reference from the Registrant’s post-effective Amendment No. 1 to the Registration Statement under the Securities Act of 1933, as amended, on Form N-2, filed on August 14, 2006.

(3)Incorporated by reference to Exhibit 3.2 as applicable, to the Registrant’s Form 8-K, filed on May 18, 2018.

(4)Incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K, filed on December 3, 2018.

(5)Incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K, filed on July 22, 2019.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 5, 2020.

APOLLO INVESTMENT CORPORATION
By:	/s/ HOWARD WIDRA
Howard Widra
Chief Executive Officer
By:	/s/ GREGORY W. HUNT
Gregory W. Hunt
Chief Financial Officer and Treasurer
By:	/s/ AMIT JOSHI
Amit Joshi
Chief Accounting Officer and Assistant Treasurer

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