BAIN CAPITAL SPECIALTY FINANCE, INC.
(Exact Name of Registrant as Specified in its Charter)


		Page
PART I
Item 1.	Business	4
Item 1A.	Risk Factors	34
Item 1B.	Unresolved Staff Comments	80
Item 2.	Properties	80
Item 3.	Legal Proceedings	80
Item 4.	Mine Safety Disclosures	80
PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	81
Item 6.	Selected Consolidated Financial Data	84
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	85
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	123
Item 8.	Consolidated Financial Statements and Supplementary Data	123
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	188
Item 9A.	Controls and Procedures	188
Item 9B.	Other Information	188
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	189
Item 11.	Executive Compensation	189
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	189
Item 13.	Certain Relationships and Related Transactions, and Director Independence	189
Item 14.	Principal Accounting Fees and Services	189
PART IV
Item 15.	Exhibits, Financial Statement Schedules	190
Item 16.	Form 10-K Summary	191
Signatures	192

Except as otherwise specified in this Annual Report on Form 10-K ("Annual Report"), the terms "we," "us," "our", and the "Company" refer to Bain Capital Specialty Finance, Inc.

Statements contained in this Annual Report (including those relating to current and future market conditions and trends in respect thereof) that are not historical facts are based on current expectations, estimates, projections, opinions and/or beliefs of the Company, BCSF Advisors, LP (the "Advisor") and/or Bain Capital Credit, LP and its affiliated advisers (collectively, "Bain Capital Credit"). Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. Certain information contained in this Annual Report constitutes "forward-looking statements," which can be identified by the use of forward-looking terminology such as "may," "will," "should," "seek," "expect," "anticipate," "project," "estimate," "intend," "continue," "target," or "believe" or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of the Company may differ materially from those reflected or contemplated in such forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors we identify in the section entitled "Item 1A. Risk Factors" and elsewhere in this Annual Report and in our filings with the Securities Exchange Commission (the "SEC").

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, some of those assumptions may be based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, the forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Annual Report should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in the section entitled "Item 1A. Risk Factors" and elsewhere in this Annual Report. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date of this Annual Report. We do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which preclude civil liability for certain forward-looking statements, do not apply to the forward-looking statements in this Annual Report because we are an investment company.

Bain Capital Specialty Finance, Inc. (the "Company") was formed on October 5, 2015 ("Inception") as a Delaware corporation structured as an externally managed, closed-end, non-diversified management investment company. The Company commenced investment operations on October 13, 2016 ("Commencement"). The Company has elected to be treated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). In addition, the Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (a "RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements.

On October 6, 2016, the Company completed its initial closing of capital commitments (the "Initial Closing") and subsequently commenced substantial investment operations. On November 19, 2018, the Company closed its initial public offering (the "IPO") issuing 7,500,000 shares of its common stock at a public offering price of $20.25 per share. Shares of common stock of the Company began trading on the New York Stock Exchange under the symbol "BCSF" on November 15, 2018.

The Company is managed by the Advisor, an investment adviser that is registered with the SEC under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The Advisor also provides the administrative services necessary for the Company to operate (in such capacity, the "Administrator"). Company management consists of investment and administrative professionals from the Advisor and Administrator along with the Board of Directors (the "Board"). The Advisor directs and executes the investment operations and capital raising activities of the Company subject to oversight from the Board, which sets the broad policies of the Company. The Board has delegated investment management of the Company's investment assets to the Advisor. The Board consists of five directors, three of whom are independent.

Our primary focus is capitalizing on opportunities within Bain Capital Credit's Senior Direct Lending Strategy, as defined below, which seeks to provide risk-adjusted returns and current income to investors by investing primarily in middle-market companies with between $10.0 million and $150.0 million in annual earnings before interest, taxes, depreciation and amortization ("EBITDA"). However, we may, from time to time, invest in larger or smaller companies. We focus on senior investments with a first or second lien on collateral and strong structures and documentation intended to protect the lender. We generally seek to retain effective voting control in respect of the loans or particular class of securities in which we invest through maintaining affirmative voting positions or negotiating consent rights that allow us to retain a blocking position. We may also invest in mezzanine debt and other junior securities, including common and preferred equity, on an opportunistic basis, and in secondary purchases of assets or portfolios, but such investments are not the principal focus of our investment strategy. We may also invest, from time to time, in distressed debt, debtor-in-possession loans, structured products, structurally subordinate loans, investments with deferred interest features, zero-coupon securities and defaulted securities. Our investments are subject to a number of risks. See "Item 1A. Risk Factors—Risks Related to Our Investments." Leverage may be utilized to help the Company meet its investment objective. Any such leverage would be expected to increase the total capital available for investment by the Company.

We may invest in debt securities which are either rated below investment grade or not rated by any rating agency but, if they were rated, would be rated below investment grade. Below investment grade securities, which are often referred to as "junk," have predominantly speculative characteristics with

respect to the issuer's capacity to pay interest and repay principal. They may also be illiquid and difficult to value.

We may borrow money from time to time within the levels permitted by the 1940 Act. On November 28, 2018, the Board approved the reduction of the Company's asset coverage requirements in Section 61(a)(2) of the 1940 Act to 150% and recommended the stockholders to vote in favor of the proposal at the special stockholder meeting on February 1, 2019. On February 1, 2019, the Company's stockholders approved the application of the reduced asset coverage. Effective February 2, 2019, the Company is permitted to borrow amounts such that its asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required. In determining whether to borrow money, we will analyze the maturity, covenant package and rate structure of the proposed borrowings as well as the risks of such borrowings compared to our investment outlook. The use of borrowed funds or the proceeds of preferred stock offerings to make investments would have its own specific set of benefits and risks, and all of the costs of borrowing funds or issuing preferred stock would be borne by holders of our common stock. See "Item 1A. Risk Factors—Risks Relating to Our Business and Structure—Our strategy involves a high degree of leverage. We intend to continue to finance our investments with borrowed money, which will magnify the potential for gain or loss on amounts invested and may increase the risk of investing in us. The risks of investment in a highly leverage fund include volatility and possible distribution restrictions."

The Company's investment activities are managed by the Advisor, an investment adviser that is registered with the SEC under the Advisers Act. The Advisor is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments and monitoring our investments and portfolio companies on an ongoing basis. More information regarding the Advisor and its business activities can be found on its registration under Form ADV located on the Investment Adviser Registration Depository website of the SEC.

The Advisor has entered into a Resource Sharing Agreement (the "Resource Sharing Agreement") with Bain Capital Credit, LP ("Bain Capital Credit"), pursuant to which Bain Capital Credit provides the Advisor with experienced investment professionals (including the members of the Advisor's Credit Committee) and access to the resources of Bain Capital Credit so as to enable the Advisor to fulfill its obligations under the investment advisory agreement (the "Investment Advisory Agreement"). Through the Resource Sharing Agreement, the Advisor intends to capitalize on the significant deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of Bain Capital Credit's investment professionals. There can be no assurance that Bain Capital Credit will perform its obligations under the Resource Sharing Agreement. The Resource Sharing Agreement may be terminated by either party on 60 days' notice, which if terminated may have a material adverse consequence on the Company's operations. See "Item 13. Certain Relationships and Related Transactions, and Director Independence."

Bain Capital Credit was established in 1998. Bain Capital Credit and its subsidiaries (including the credit vehicles managed by its Alternative Investment Fund Manager affiliate) had approximately $39.2 billion in assets under management as of December 31, 2018. To date, Bain Capital Credit has invested across the credit products and fixed income universe, including performing and distressed bank loans, high yield bonds, debtor-in-possession loans, senior direct lending, mezzanine debt and other junior securities, structured products, credit-based equities and other investments. Bain Capital Credit has invested over $7.1 billion in the Senior Direct Lending Strategy (as defined below) since 1999 (of which

approximately $1.9 billion has been invested within the 12-month period ending December 31, 2018) and has an extensive track record as a non-traditional lender in the middle market. The Senior Direct Lending Strategy is defined as primarily consisting of investments in secured debt in companies with EBITDA of $10.0 million to $150.0 million.

Bain Capital Credit is a wholly-owned subsidiary of Bain Capital, LP ("Bain Capital") and the Advisor is a majority-owned subsidiary of Bain Capital Credit. As a diversified private investment firm, Bain Capital and its affiliates, including Bain Capital Credit and the Advisor, engage in a broad range of activities, including investment activities for their own account and for the account of other investment funds or accounts, and provide investment banking, advisory, management and other services to funds and operating companies.

Our business and affairs are managed under the direction of the Board. The Board consists of five members, three of whom are not "interested persons" of the Company, the Advisor or their respective affiliates as defined in Section 2(a)(19) of the 1940 Act. We refer to these individuals as our "Independent Directors." The Independent Directors compose a majority of the Board. The Board elects our officers, who serve at the discretion of the Board. The responsibilities of the Board include quarterly determinations of fair value of our assets, corporate governance activities, oversight of our financing arrangements and oversight of our investment activities.

Our investment activities are managed by the Advisor, which is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments and monitoring our investments and portfolio companies on an ongoing basis. We have entered into an Investment Advisory Agreement with the Advisor, pursuant to which we have agreed to pay the Advisor a base management fee and an incentive fee for its services. The cost of both the base management fee and the incentive fee will ultimately be borne by our stockholders.

The base management fee is calculated at an annual rate of 1.5% of our gross assets, including assets purchased with borrowed funds or other forms of leverage but excluding cash and cash equivalents. For services rendered under the Investment Advisory Agreement, the base management fee is payable quarterly in arrears. The base management fee is calculated based on the average value of our gross assets at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. Base management fee for any partial month or quarter will be appropriately pro-rated. For purposes of the Investment Advisory Agreement, cash equivalents means U.S. government securities and commercial paper instruments maturing within one year of purchase.

The Advisor, however, has agreed to contractually waive its right to receive base management fee in excess of 0.75% of the aggregate gross assets excluding cash (including capital drawn to pay the Company's expenses) during any period prior to the IPO. The Advisor is not permitted to recoup any waived amounts at any time.

We will pay the Advisor an incentive fee. The incentive fee will consist of two parts—an incentive fee based on income and an incentive fee based on capital gains—which are described in more detail below.

The first part, the income incentive fee, will be calculated and payable quarterly in arrears and equals:

The second part, the capital gains incentive fee, will be determined and payable in arrears as of the end of each fiscal year, and equals:

Pre-incentive fee net investment income means interest income, distribution income and any other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies but excluding fees for providing managerial assistance) accrued during each calendar quarter, minus our operating expenses for such quarter (including the base management fee, expenses payable under the administration agreement (the "Administration Agreement") and any interest expense and distributions paid on any issued and outstanding debt or preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as market discount, original issue discount ("OID"), debt instruments with payment-in-kind ("PIK") interest, preferred stock with PIK dividends and zero coupon securities), accrued income that we have not yet received in cash. See "Item 1A. Risk Factors—Risks Relating to Our Business and Structure—Our management and incentive fee structure may create incentives for our Advisor that are not fully aligned with the interests of our stockholders and may induce our Advisor to make speculative investments."

Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Because of the structure of the incentive fee, it is possible that we may pay an incentive fee in a quarter where we incur a loss. For example, if we receive pre-incentive fee net investment income in excess of the Hurdle rate for a quarter, we will pay the applicable incentive fee even if we have incurred a loss in that quarter due to realized and unrealized capital losses.

Pre-incentive fee net investment income will be compared to a "Hurdle Amount" equal to the product of (i) the "hurdle rate" of 1.5% per quarter (6% annualized) and (ii) the Company's net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter. If market interest rates rise, we may be able to invest our funds in debt instruments that provide for a higher return, which would increase our pre-incentive fee net investment income and make it easier for the Advisor to surpass the fixed Hurdle rate

and receive an incentive fee based on such net investment income. PIK interest and OID will also increase our pre-incentive fee net investment income and make it easier to surpass the fixed Hurdle rate. Our pre-incentive fee net investment income used to calculate this part of the incentive fee is also included in the amount of our total assets (other than cash but including assets purchased with borrowed amounts) used to calculate the base management fee.

Prior to the IPO, the Company paid the income incentive fee in each calendar quarter as follows:

On and after the IPO, the Company will pay the income incentive fee in each calendar quarter as follows:

These calculations will be appropriately pro-rated for any period of less than three months and adjusted for any share issuances or repurchases by the Company during the current quarter. Because the IPO occurred on a date other than the first day of a calendar quarter, the income incentive fee was calculated for the fourth quarter 2018 at a weighted rate calculated based on the fee rates applicable before and after the IPO based on the number of days in the calendar quarter before and after the IPO.

On October 11, 2018, the Board approved, subject to completion of the IPO, an Amended and Restated Investment Advisory Agreement. Beginning with the calendar quarter that commenced

January 1, 2019, the incentive fee based on income is subject to (i) a three-year lookback provision and (ii) a cap on quarterly income incentive fee payments based on net realized or unrealized capital loss, if any, during the applicable three-year lookback period.

The second part of the incentive fee is a capital gains incentive fee that will be determined and payable in arrears in cash as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals (i) 15% of our realized capital gains as of the end of the fiscal year prior to the IPO and (ii) 17.5% of our realized capital gains as of the end of the fiscal year after the IPO. In determining the capital gains incentive fee payable to the Advisor, we calculate the cumulative aggregate realized capital gains and cumulative aggregate realized capital losses since our inception, and the aggregate unrealized capital depreciation as of the date of the calculation, as applicable, with respect to each of the investments in our portfolio. For this purpose, cumulative aggregate realized capital gains, if any, equals the sum of the differences between the net sales price of each investment, when sold, and the cost of such investment. Cumulative aggregate realized capital losses equals the sum of the amounts by which the net sales price of each investment, when sold, is less than the cost of such investment. Aggregate unrealized capital depreciation equals the sum of the difference, if negative, between the valuation of each investment as of the applicable calculation date and the cost of such investment. At the end of the applicable year, the amount of capital gains that serves as the basis for our calculation of the capital gains incentive fee equals the cumulative aggregate realized capital gains less cumulative aggregate realized capital losses, less aggregate unrealized capital depreciation, with respect to our portfolio of investments. If this number is positive at the end of such year, then the capital gains incentive fee for such year will equal 15% before the IPO or 17.5% after the IPO, as applicable, of such amount, less the aggregate amount of any capital gains incentive fees paid in respect of our portfolio in all prior years as calculated in accordance with the below after the IPO.

Because the IPO occurred on a date other than the first day of a fiscal year, a capital gains incentive fee shall be calculated as of the day before the IPO, with such capital gains incentive fee paid to the Advisor following the end of the 2018 fiscal year. For the avoidance of doubt, such capital gains incentive fee shall be equal to 15% of the Company's realized capital gains on a cumulative basis from inception through November 14, 2018, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. Following the IPO, solely for the purposes of calculating the capital gains incentive fee, the Company will be deemed to have previously paid capital gains incentive fees prior to the IPO equal to the product obtained by multiplying (a) the actual aggregate amount of previously paid capital gains incentive fees for all periods prior to the IPO by (b) the percentage obtained by dividing (x) 17.5% by (y) 15%. In the event that the Investment Advisory Agreement shall terminate as of a date that is not a fiscal year end, the termination date shall be treated as though it were a fiscal year end for purposes of calculating and paying a capital gains incentive fee.


	*Example 1: Income Related Portion of Incentive Fee: ^()**
	Alternative 1 - The Company is below the hurdle Assumptions
	Investment income (including interest, dividends, fees, etc.) = 1.5% Hurdle rate⁽¹⁾ = 1.5% Management fee⁽¹⁾ = 0.375% Other expenses (legal, accounting, custodian, transfer agent, etc.)⁽²⁾ = 0.1525%
	Pre-incentive fee net investment income (investment income–(management fee + other expenses)) = 0.9725%
	Pre-incentive net investment income does not exceed hurdle rate, therefore there is no incentive fee.
	Alternative 2 - The Company exceeds the hurdle Assumptions
	Investment income (including interest, dividends, fees, etc.) = 2.25% Hurdle rate⁽¹⁾ = 1.5% Management fee⁽¹⁾ = 0.375% Other expenses (legal, accounting, custodian, transfer agent, etc.)⁽²⁾ = 0.1525% Pre-incentive fee net investment income
	(investment income–(management fee + other expenses)) = 1.7225%, which exceeds the hurdle rate
	Incentive fee
	= 100% × "catch-up" + the greater of 0% and (17.5% × (pre-incentive fee net investment income–1.8182%))
	= 100% × (1.7225%–1.5%) + 0%
	= 0.2225% of total net assets
	Alternative 3—The Company exceeds the catch-up Assumptions
	Investment income (including interest, dividends, fees, etc.) = 3.0% Hurdle rate⁽¹⁾ = 1.5% Management fee⁽¹⁾ = 0.375% Other expenses (legal, accounting, custodian, transfer agent, etc.)⁽²⁾ = 0.1525% Pre-incentive fee net investment income (investment income–(management fee + other expenses)) = 2.4725%
	Incentive fee = 17.5% × pre-incentive fee net investment income, subject to "catch-up"⁽³⁾
	= 100% × "catch-up" + the greater of 0% and (17.5% × (pre-incentive fee net
	investment income–1.8182%))
	Catch-up = 1.8182%–1.5% = 0.3182%
	Incentive fee = (100% × 0.3182%) + (17.5% × (2.4725%–1.8182%))
	= 0.3182% + (17.5% × 0.6543%) = 0.3182% + 0.11450% = 0.43270% of total net assets

The Board will monitor the mix and performance of our investments over time and will seek to satisfy itself that the Advisor is acting in our interests and that our fee structure appropriately incentivizes the Advisor to do so.

We have also entered into an Administration Agreement with the Administrator, pursuant to which the Administrator will provide the administrative services necessary for us to operate, and we will utilize the Administrator's office facilities, equipment and recordkeeping services. Pursuant to the Administration Agreement, the Administrator has agreed to oversee our public reporting requirements and tax reporting and monitor our expenses and the performance of professional services rendered to us by others. The Administrator has also hired a sub-administrator to assist in the provision of administrative services. We may reimburse the Administrator for its costs and expenses and our allocable portion of overhead incurred by it in performing its obligations under the Administration Agreement, including compensation paid to or compensatory distributions received by our officers (including our Chief Compliance Officer and Chief Financial Officer) and any of their respective staff who provide services to

us, operations staff who provide services to us, and internal audit staff, if any, to the extent internal audit performs a role in our Sarbanes-Oxley internal control assessment. Our allocable portion of overhead will be determined by the Administrator, which expects to use various methodologies such as allocation based on the percentage of time certain individuals devote, on an estimated basis, to the business and affairs of the Company, and will be subject to oversight by the Board. The sub-administrator will be paid its compensation for performing its sub-administrative services under the sub-administration agreement. The Company incurred expenses related to the sub-administrator of $0.8 million, $0.5 million and $0.1 million for the years ended December 31, 2018, 2017, and 2016, respectively, which is included in other general and administrative expenses on the consolidated statements of operations. The Administrator not seek reimbursement in the event that any such reimbursements would cause any distributions to our stockholders to constitute a return of capital. See "Fees and Expenses." In addition, the Administrator is permitted to delegate its duties under the Administration Agreement to affiliates or third parties and we will reimburse the expenses of these parties incurred and paid by the Advisor on our behalf.

Both the Investment Advisory Agreement and the Administration Agreement have been approved by the Board. Unless earlier terminated as described below, both the Investment Advisory Agreement and the Administration Agreement will remain in effect for a period of two years from their effective date and will remain in effect from year to year thereafter if approved annually by (i) the vote of the Board, or by the vote of a majority of our outstanding voting securities, and (ii) the vote of a majority of our Independent Directors. The Investment Advisory Agreement and the Administration Agreement will automatically terminate in the event of assignment. Both the Investment Advisory Agreement and the Administration Agreement may be terminated by either party without penalty upon not less than 60 days' written notice to the other. Upon termination of the Investment Advisory Agreement, the Company will be required to change its name which may have a material adverse impact on the Company's operations. See "Item 1A. Risk Factors—Risks Relating to Our Business and Structure— We are dependent upon key personnel of Bain Capital Credit and our Advisor."

Under the Investment Advisory Agreement, the Advisor has not assumed any responsibility to us other than to render the services called for under that agreement. It will not be responsible for any action of the Board in following or declining to follow the Advisor's advice or recommendations. Under the Investment Advisory Agreement, the Advisor, its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Advisor, and any person controlling or controlled by the Advisor will not be liable to us, any subsidiary of ours, our directors, our stockholders or any subsidiary's stockholders or partners for acts or omissions performed in accordance with and pursuant to the Investment Advisory Agreement, except those resulting from acts constituting gross negligence, willful misfeasance, bad faith or reckless disregard of the duties that the Advisor owes to us under the Investment Advisory Agreement. In addition, as part of the Investment Advisory Agreement, we have agreed to indemnify the Advisor and each of its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Advisor, from and against any claims or liabilities, including reasonable legal fees and other expenses reasonably incurred, arising out of or in connection with our business and operations or any action taken or omitted on our behalf pursuant to authority granted by the Investment Advisory Agreement, except where attributable to gross negligence, willful misfeasance, bad faith or reckless disregard of such person's duties under the Investment Advisory Agreement. These protections may lead the Advisor to act in a riskier manner when acting on our behalf than it would when acting for its own account.

United States federal and state securities laws may impose liability under certain circumstances on persons who act in good faith. Nothing in the Investment Advisory Agreement will constitute a waiver or limitation of any rights that the Company may have under any applicable federal or state securities laws.

The Advisor's investment process can be broken into four processes: (1) Sourcing and Idea Generation, (2) Investment Diligence & Recommendation, (3) Credit Committee Approval and Portfolio Construction and (4) Portfolio & Risk Management.

The investment decision-making process begins with sourcing ideas. Bain Capital Credit's Private Credit Group interacts with over 1,500 global contacts as a means to generate middle market investment opportunities. Our Advisor also seeks to leverage the contacts of Bain Capital Credit's industry groups, Trading Desk, Portfolio Group and Restructuring team, including private equity firms, banks and a variety of advisors and other intermediaries.

Our Advisor utilizes Bain Capital Credit's bottom-up approach to investing, and it starts with the due diligence performed by its Private Credit Group. The group works with the close support of Bain Capital Credit's industry groups. This diligence process typically begins with a detailed review of an offering memorandum as well as Bain Capital Credit's own independent diligence efforts, including in-house materials and expertise, third-party independent research and interviews, and hands-on field checks where appropriate. For deals that progress beyond an initial stage, the team will usually schedule one or more meetings with company management, facilities visits and also meetings with the sponsor in order to ask more detailed questions and to better understand the sponsor's view of the business and plans for it going forward. The team's diligence work is summarized in investment memoranda and accompanying credit packs. Work product also includes full models and covenant analysis.

If the reviewing team deems an investment worthy of serious consideration, it generally must be presented to the credit committee, which is comprised of at least three experienced credit professionals, who are selected based on strategy and geography. A portfolio manager leads the decision making process for each investment and engages the credit committee throughout the investment process in order to prioritize and direct the underwriting of each potential investment opportunity. For middle market holdings, the path to exit an investment is often discussed at credit committee meetings, including restructurings, acquisitions and sale to strategic buyers. Since most middle market investments are illiquid, exits are driven by a sale of the portfolio company or a refinancing of the portfolio company's debt.

Our Advisor utilizes Bain Capital Credit's Private Credit Group for the daily monitoring of its respective credits after an investment has been made. Our Advisor believes that the ongoing monitoring of financial performance and market developments of portfolio investments is critical to successful investment management. Accordingly, our Advisor is actively involved in an on-going portfolio review process and attends board meetings. To the extent a portfolio investment is not meeting our Advisor's expectations, our Advisor takes corrective action when it deems appropriate, which may include raising interest rates, gaining a more influential role on its board, taking warrants and, where appropriate, restructuring the balance sheet to take control of the company. Our Advisor will utilize the Bain Capital Credit Risk and Oversight Committee. The Risk and Oversight Committee is responsible for monitoring and reviewing risk management, including portfolio risk, counterparty risk and firm-wide risk issues. In addition to the methods noted above, there are a number of proprietary methods and tools used through all levels of Bain Capital Credit to manage portfolio risk.

The Advisor, through the resources and personnel provided by Bain Capital Credit through the Resource Sharing Agreement, uses detailed business, industry and competitive analyses to make investments. In evaluating potential opportunities, Bain Capital Credit's investment professionals typically complete market analyses to assess the attractiveness of a given industry and a specific investment and monitor, on an ongoing basis, financial performance and market developments. The Advisor's approach to making investments generally involves evaluating the following business characteristics: market definition, market size and growth prospects, competitive analysis, historical financial performance, margin analysis and cost structure, quality of earnings, capital structure, access to capital markets and regulatory, risk analysis, tax and legal matters. Additionally, the Advisor places significant emphasis on the quality and track record of the controlling stockholders and management team as well as careful consideration to the underlying deal structure and documentation. When considering an investment that meets the Company's return objectives, the Advisor seeks to mitigate downside risk.

We seek to create a broad and varied portfolio of investments across various industries as a method to manage risk and capitalize on specific sector trends, all concentrated in a small number of industries.

Our primary focus is capitalizing on senior middle market lending opportunities. We seek to provide risk adjusted returns and current income to investors by investing primarily in middle market companies with between $10.0 million and $150.0 million in EBITDA. However, we may, from time to time, invest in larger or smaller companies. We focus on senior investments with a first or second lien on collateral and strong structures and documentation intended to protect the lender. We generally seek to retain effective voting control in respect of the loans or particular class of securities in which we invest through maintaining affirmative voting positions or negotiating consent rights that allow us to retain a blocking position. We may also invest in mezzanine debt and other junior securities, including common and preferred equity, on an opportunistic basis, and in secondary purchases of assets or portfolios, but such investments are not the principal focus of our investment strategy. We may also invest, from time to time, in distressed debt, debtor in possession loans, structured products, structurally subordinate loans, investments with deferred interest features, zero coupon securities and defaulted securities. The Company may also invest, from time to time, in equity securities, distressed debt, debtor in possession loans, structured products, structurally subordinate loans, investments with deferred interest features, zero coupon securities and defaulted securities. Leverage is expected to be utilized to help the Company meet its investment objective. Any such leverage, if incurred, is expected to increase the total capital available for investment by the Company. As a BDC, we may also invest up to 30% of our portfolio opportunistically in "non qualifying" portfolio investments, such as investments in non U.S. companies.

In addition, we have invested with Antares Midco Inc. ("Antares") in a joint venture, Antares Bain Capital Complete Financing Solution LLC ("ABCS"). ABCS's principal purpose is to make investments in senior secured unitranche loans. Investment decisions of ABCS require the consent of both the Investment Advisor and Antares Credit Opportunities Manager LLC, as representatives of the Company and Antares, respectively. We will also seek to collaborate with Antares to provide other senior secured loans to middle-market companies. ABCS is not a qualifying asset under Section 55 (a) of the 1940 Act.

We may invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated (i.e. junk bonds). See "Item 1A. Risk Factors—Risks Related to Our Investments—The lack of liquidity in our investments may adversely affect our business." Our investments also may include non-cash income features, including PIK interest and OID. See "Item 1A. Risk Factors—Risks Related to Our Investments—Our investments in OID and PIK interest income may expose

us to risks associated with such income being required to be included in accounting income and taxable income prior to receipt of cash."

The Advisor monitors our portfolio companies on an ongoing basis. It monitors the financial trends of each portfolio company to determine if they are meeting their respective business plans and to assess the appropriate course of action for each company. The Advisor has several methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:

The Advisor rates the investments in our portfolio at least quarterly and it is possible that the rating of a portfolio investment may be reduced or increased over time. For investments rated 3 or 4, the Advisor enhances its level of scrutiny over the monitoring of such portfolio company. Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments.

The following table shows the composition of our portfolio on the 1 to 4 rating scale as of December 31, 2018:

The following table shows the composition of our portfolio on the 1 to 4 rating scale as of December 31, 2017:

Our primary competitors in providing financing to middle-market companies include public and private funds, other business development companies, commercial and investment banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity and hedge funds. Some of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, we believe some competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or to the distribution and other requirements we must satisfy to maintain our qualification as a RIC.

We expect to use the expertise of the investment professionals of Bain Capital Credit to which we have access to assess investment risks and determine appropriate pricing for our investments in portfolio companies. In addition, we expect that the relationships of Bain Capital Credit will enable us to learn about, and compete effectively for, financing opportunities with attractive middle-market companies in the industries in which we seek to invest. For additional information concerning the competitive risks we face, see "Item 1A. Risk Factors—Risks Relating to Our Business and Structure—We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses."

Our primary operating expenses include the payment of fees to the Advisor under the Investment Advisory Agreement, our allocable portion of overhead expenses under the Administration Agreement and other operating costs described below. We bear all other out-of-pocket costs and expenses of our operations and transactions, including:

and compensation paid to or compensatory distributions received by our officers (including our Chief Compliance Officer and Chief Financial Officer) and any of their respective staff who provide services to us, operations staff who provide services to us, internal audit staff, if any, to the extent internal audit performs a role in our Sarbanes-Oxley internal control assessment and fees paid to third-party providers for goods or services. Our allocable portion of overhead will be determined by the Administrator, which expects to use various methodologies such as allocation based on the percentage of time certain individuals devote, on an estimated basis, to our business and affairs, and will be subject to oversight by the Board. The sub-administrator is paid its compensation for performing its sub-administrative services under the sub-administration agreement. We incurred expenses related to the sub-administrator of $0.8 million, $0.5 million and $0.1 million for the years ended December 31, 2018, 2017 and 2016, respectively, which is included in professional fees on the consolidated statements of operations.

The fee we pay our Advisor is higher after the completion of the IPO. With respect to any period prior to the date of the IPO, pursuant to the Investment Advisory Agreement and a waiver agreement with our Advisor, all base management fees in excess of an annual rate of 0.75% of the aggregate gross assets excluding cash and cash equivalents were contractually waived by our Advisor and not subject to recoupment by our Advisor. As a result, upon completion of the IPO, the base management fee has increased to an annual rate of 1.5% of our gross assets. For the period from the date of the IPO through December 31, 2018, the Advisor has voluntarily waived its right to receive the Base Management Fee in excess of 0.75%. If the base management fee waivers, contractual and voluntary, had not been in place for the years ended December 31, 2018, 2017 and 2016, the base management fee charged would have increased by $8.8 million, $2.9 million and $0.2 million, respectively. Further, upon completion of the IPO, we pay our Advisor a 17.5% incentive fee based on pre-incentive fee net investment income and capital gains, an increase from 15.0% prior to the completion of the IPO. For the period from the date of the IPO through December 31, 2018, the Advisor has voluntarily waived its right to receive the incentive fee in excess of 15.0%. If the incentive fee waivers, contractual and voluntary, had not been in place for the year ended December 31, 2018, the incentive fee charged would have increased by $1.9 million. For the years ended December 31, 2017 and 2016, there were no incentive fee waivers. In addition, prior to the completion of the IPO, our Administrator did not seek reimbursement for certain expenses payable by us under the Administration Agreement.

From time to time, the Administrator or its affiliates may pay third-party providers of goods or services. We will reimburse the Administrator or such affiliates thereof for any such amounts paid on our behalf. The Administrator will waive its right to be reimbursed in the event that such reimbursements would cause any distributions to our stockholders to constitute a return of capital.

The Advisor is authorized to determine the broker to be used for each securities transaction. In selecting brokers to execute transactions, the Advisor need not solicit competitive bids and does not have an obligation to seek the lowest available commission cost. In selecting brokers, the Advisor may or may not negotiate "execution only" commission rates and thus we may be deemed to be paying for other services provided by the broker that are included in the commission rate. In negotiating commission rates, the Advisor will take into account the financial stability and reputation of the broker and the brokerage, research and other services provided to us, the Advisor and other customers of the Advisor and its affiliates by such broker, even though we may not, in any particular instance, be the direct or indirect beneficiaries of the research or other services provided and the base management fee payable to the Advisor is not reduced because it receives such services. In addition, the Advisor may direct commissions to certain brokers that on the foregoing basis may furnish other services to us, the Advisor and other customers of the Advisor and its affiliates, such as telephone lines, news and quotation equipment, electronic office equipment, account record keeping and clerical services, trading software, financial publications and economic consulting services. As a result of the brokerage practices described above, the

levels of commission paid and prices paid or received by us in securities transactions may be less favorable than in securities transactions effected on a best price and execution basis.

The Advisor engaged placement agents to assist with the placement of the Company's shares, and may engage additional or different placement agents in the future. The Advisor and/or investors referred by a placement agent shall pay all compensation to the placement agents. The Company did not pay compensation to any placement agents in connection with the Company's initial private offering (the "Private Offering"). The prospect of receiving placement fees or other compensation may provide placement agents and/or their salespersons with an incentive to favor sales of the shares of the Company over the sale of interests of other investments with respect to which the placement agent does not receive such additional compensation, or receives lower levels of additional compensation.

We anticipate cash to be generated from future offerings of securities and cash flows from operations, including interest earned from the temporary investment of cash in cash equivalents, U.S. government securities and other high-quality debt investments that mature in one year or less. Additionally, we are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 200% immediately after each such issuance. Effective February 2, 2019, following shareholder approval of the reduce asset coverage proposal, the Company may maintain an asset coverage ratio of only 150%. Furthermore, while any indebtedness and senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. In connection with borrowings, our lenders may require us to pledge assets, investor commitments to fund capital calls and/or the proceeds of those capital calls. In addition, the lenders may ask us to comply with positive or negative covenants that could have an effect on our operations.

On December 22, 2016, we entered into the revolving credit agreement (the "SMBC Revolving Credit Agreement"). The maximum commitment amount under the SMBC Revolving Credit Facility was $150.0 million, and may be increased up to $350.0 million ("Maximum Commitment") with the consent of SMBC or reduced upon our request. Effective July 31, 2018, we reduced the commitment amount under the SMBC Revolving Credit Facility to $85.0 million. Proceeds under the SMBC Revolving Credit Facility may be used for any purpose permitted under our organizational documents, including general corporate purposes such as the making of investments. The SMBC Revolving Credit Agreement contains certain covenants, including maintaining an asset coverage ratio of total assets to total borrowings of at least 200%.

Borrowings under the SMBC Revolving Credit Facility bear interest at the London Interbank Offered Rate ("LIBOR") plus a margin. The SMBC Revolving Credit Facility was accruing interest expense at a rate of LIBOR plus 1.40%. We pay an unused commitment fee of: (a) where the Maximum Commitment which is unused on such date is greater than fifty (50) percent of the Maximum Commitment, a rate of 20 basis points (0.20%) per annum; or (b) where the Maximum Commitment which is unused on such date is less than or equal to fifty (50) percent of the Maximum Commitment, a rate of 15 basis points (0.15%) per annum. Interest is payable in arrears either on a one month, two month, three month or six month LIBOR period. Any amounts borrowed under the SMBC Revolving Credit Facility, and all accrued and unpaid interest, will be due and payable, on the earliest of: (a) December 22, 2019; (b) the date upon which SMBC declares the obligations, or the obligations become, due and payable after the occurrence of an event of default under the SMBC Revolving Credit Facility; (c) the date upon which we terminate the commitments under the SMBC Revolving Credit Facility; and (d) 45 days prior to the

earlier of (1) the date upon which the commitment period under the subscription agreements terminates and (2) the date upon which the ability to make capital calls and receive capital contributions otherwise terminates.

On November 21, 2018, the SMBC Revolving Credit Facility was terminated. The proceeds from the initial public offering on November 15, 2018, were used to repay the total outstanding debt.

On October 4, 2017, we entered into the revolving credit agreement (the "BCSF Revolving Credit Facility") with us, as equity holder, BCSF I, LLC, a Delaware limited liability company and a wholly owned and consolidated subsidiary of the Company, as borrower, and Goldman Sachs Bank USA, as sole lead arranger ("Goldman Sachs"). The BCSF Revolving Credit Facility was subsequently amended on May 15, 2018 to reflect certain clarifications regarding margin requirements and hedging currencies. The maximum commitment amount under the BCSF Revolving Credit Facility is $500.0 million, and may be increased up to $750.0 million. Proceeds of the loans under the BCSF Revolving Credit Facility may be used to acquire certain qualifying loans and such other uses as permitted under the BCSF Revolving Credit Facility. The BCSF Revolving Credit Facility includes customary affirmative and negative covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature. As of December 31, 2018 and December 31, 2017, we were in compliance with these covenants.

Borrowings under the BCSF Revolving Credit Facility bear interest at LIBOR plus a margin. As of December 31, 2018 and December 31, 2017, the BCSF Revolving Credit Facility was accruing interest expense at a rate of LIBOR plus 2.50%. We pay an unused commitment fee of 30 basis points (0.30%) per annum. Interest is payable quarterly in arrears. Any amounts borrowed under the BCSF Revolving Credit Facility, and all accrued and unpaid interest, will be due and payable, on the earliest of: (a) October 5, 2022 and (b) the date upon which all loans shall become due and payable in full, whether by acceleration or otherwise.

BCSF I, LLC is a wholly owned subsidiary of the Company and Borrower under the BCSF Revolving Credit Facility. BCSF I, LLC has entered into an investment management agreement with the Company as of October 4, 2017, pursuant to which the Company manages the BCSF I, LLC investment program and related activities. All intercompany transactions between BCSF I, LLC and the Company are eliminated in consolidation.

On September 28, 2018, (the "2018-1 Closing Date"), the Company, through BCC Middle Market CLO 2018-1 LLC (the "2018-1 Issuer"), a Delaware limited liability company and a wholly owned and consolidated subsidiary of the Company, completed its $451.2 million term debt securitization (the "CLO Transaction"). The notes issued in connection with the CLO Transaction (the "2018-1 Notes") are secured by a diversified portfolio of the Issuer consisting primarily of middle market loans and participation interests in middle market loans, the majority of which are senior secured loans (the "2018-1 Portfolio"). At the 2018-1 Closing Date, the 2018-1 Portfolio was comprised of assets transferred from the Company and its consolidated subsidiaries. All transfers were eliminated in consolidation and there were no realized gains or losses recognized in the CLO Transaction.

We have adopted a DRIP that provides for the reinvestment of dividends and other distributions on behalf of our stockholders, unless a stockholder elects to receive cash. As a result, if our Board declares a cash distribution, then our stockholders who acquire shares of our common stock after our listing and have not elected to "opt out" of our DRIP will have their cash distributions automatically reinvested in additional shares of our common stock as described below. Any stockholders who held shares of our common stock prior to our listing had to opt in to the DRIP.

We do not currently have any employees. Each officer of the Company is also an employee of the Advisor or its affiliates. See "Item 10. Directors, Executive Officers and Corporate Governance."

Our day-to-day investment operations are managed by the Advisor. Pursuant to its Resource Sharing Agreement with Bain Capital Credit, the Advisor has access to the individuals who comprise the Advisor's Credit Committee, and a team of additional experienced investment professionals who, collectively, comprise the Advisor's investment team. The Advisor may hire additional investment professionals to provide services to us, based upon its needs. See "Item 1. Business-General—Investment Advisory Agreement; Administration Agreement."

Our Initial Closing occurred on October 6, 2016 and the Company commenced operations on October 13, 2016. We have entered into separate Subscription Agreements with a number of investors for the Private Offering. Each investor will make a capital commitment to purchase shares of our common stock pursuant to the Subscription Agreements. Investors will be required to make capital contributions to purchase shares of the Company's common stock each time the Company delivers a drawdown notice, which will be delivered at least 10 business days prior to the required funding date, in an aggregate amount not to exceed their respective capital commitments. All purchases will generally be made pro rata in accordance with the investors' capital commitments, at a per-share price as determined by the Board (including any committee thereof) as of the end of the most recent calendar quarter or such other date determined by the Board prior to the date of the applicable drawdown notice. The per-share price shall be at least equal to the net asset value per share in accordance with the limitations under Section 23 of the 1940 Act. The Board may set the per-share price above the net asset value per share based on a variety of factors, including without limitation the total amount of the Company's organizational and other expenses. Following the IPO, investors were released from any further obligation to purchase additional shares, subject to certain exceptions. Prior to the IPO, no investor was permitted to sell, assign, transfer or otherwise dispose of its shares or capital commitment unless the Company provides its prior written consent and the transfer is otherwise made in accordance with applicable law.

The Company filed an election on October 6, 2016 to be treated as a BDC under the 1940 Act. Additional closings of the Private Offering may occur from time to time as determined by the Company. The Company reserves the right to conduct additional offerings of securities in the future in addition to the Private Offering. In the event that the Company enters into Subscription Agreements with one or more investors after the initial drawdown, each such investor will be required to make purchases of shares of common stock (each, a "Catch-up Purchase") on one or more dates to be determined by the Company. The aggregate purchase price of the Catch-up Purchases will be equal to an amount necessary to ensure that, upon payment of the aggregate purchase price, such investor will have contributed the same percentage of its capital commitment to the Company as all investors whose subscriptions were accepted at previous closings. Catch-up Purchases will be made at a per-share price as determined by the Board (including any committee thereof) as of the end of the most recent calendar quarter or such other date as

determined by the Board prior to the date of the applicable drawdown notice. The per-share price shall be at least equal to the net asset value per share of the Company's common stock in accordance with the limitations under Section 23 of the 1940 Act. The Board may set the per-share price above the net asset value per share based on a variety of factors, including without limitation the total amount of the Company's organizational and other expenses.

In addition to all legal remedies available to the Company, failure by an investor to purchase additional common stock when requested by the Company will (following a cure period of ten business days) result in that investor being subject to certain default provisions set forth in the Subscription Agreements. Defaulting investors may also forfeit their right to participate in purchasing additional shares on any future drawdown date or otherwise participate in any future investments in the Company.

Except as provided above, three and a half years following the Initial Closing (the "Commitment Period"), investors in the Private Offering will be released from any further obligation to purchase additional shares of common stock, except to the extent necessary to (a) pay Company expenses, including base management fee, any amounts that may become due under any borrowings or other financings or similar obligations and any other liabilities, contingent or otherwise, in each case to the extent they relate to the Commitment Period, (b) complete investments in any transactions for which there are binding written agreements as of the end of the Commitment Period (including investments that are funded in phases), (c) fund follow-on investments made in existing portfolio companies that, in the aggregate, do not exceed 10% of total commitments, (d) fund obligations under any Company guarantee or indemnity made during the Commitment Period and/or (e) fund any defaulted commitments. Upon the commencement of the IPO, the Private Offering has ended and the Commitment Period has terminated.

We have elected to be regulated as a BDC under the 1940 Act. A BDC must be organized in the United States for the purpose of investing in or lending to primarily private companies and making significant managerial assistance available to them. A BDC may use capital provided by public stockholders and from other sources to make long-term, private investments in businesses. A publicly-traded BDC provides stockholders the ability to retain the liquidity of a publicly-traded stock while sharing in the possible benefits, if any, of investing in primarily privately owned companies.

We may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC unless authorized by vote of a majority of the outstanding voting securities, as required by the 1940 Act. A majority of the outstanding voting securities of a company is defined under the 1940 Act as the lesser of: (a) 67% or more of such company's voting securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of such company. We do not anticipate any substantial change in the nature of our business.

As with other companies regulated by the 1940 Act, a BDC must adhere to certain substantive regulatory requirements. A majority of our directors must be persons who are not interested persons, as that term is defined in the 1940 Act. Additionally, we are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect the BDC. Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to us or our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person's office.

2019, following stockholder approval of the reduced asset coverage requirements, the Company must maintain an asset coverage ratio of only 150%. We may also be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our directors who are not interested persons and, in some cases, prior approval by the SEC. As a BDC, we are limited in our ability to invest in any portfolio company in which the Advisor or any of its affiliates currently has an investment or to make any co-investments with the Advisor or its affiliates without an exemptive order from the SEC, subject to certain exceptions.

We do not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Under these limits, except for registered money market funds, we generally cannot acquire more than 3% of the voting stock of any investment company, invest more than 5% of the value of our total assets in the securities of one investment company or invest more than 10% of the value of our total assets in the securities of investment companies in the aggregate. The portion of our portfolio invested in securities issued by investment companies ordinarily will subject our stockholders to additional expenses. Our investment portfolio is also subject to diversification requirements by virtue of our intention to qualify as a RIC for U.S. tax purposes.

We will generally not be able to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value of our common stock if the Board determines that such sale is in our best interests and the best interests of our stockholders, and our stockholders approve such sale. In addition, we may generally issue new shares of our common stock at a price below net asset value in rights offerings to existing stockholders, in payment of distributions and in certain other limited circumstances.

As a BDC, we are subject to certain risks and uncertainties. See "Item 1A. Risk Factors."

We may invest up to 30% of our portfolio opportunistically in "non-qualifying assets", which will be driven primarily through opportunities sourced through the Advisor. However, under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as "qualifying assets," unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC's total assets. The principal categories of qualifying assets relevant to our proposed business are the following:

As a BDC, we are required to meet an asset coverage ratio, defined under the 1940 Act as the ratio of our total assets (less all liabilities and indebtedness not represented by senior securities) to our outstanding senior securities. On November 28, 2018, the Board approved the reduction of the Company's asset coverage requirements in Section 61(a)(2) of the 1940 Act to 150% and recommended the stockholders to vote in favor of the proposal at the special stockholder meeting on February 1, 2019. On February 1, 2019, the Company's stockholders approved the application of the reduced asset coverage. Effective February 2, 2019, the Company is permitted to borrow amounts such that its asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required.

A BDC must have been organized under the laws of, and have its principal place of business in, any state or states within the United States and must be operated for the purpose of making investments in the types of securities described in (1), (2) or (3) above. However, in order to count portfolio securities as qualifying assets for the purpose of the 70% test, the BDC must either control the issuer of the securities or must offer to make available to the issuer of the securities (other than small and solvent companies described above) significant managerial assistance; except that, where the BDC purchases such securities in conjunction with one or more other persons acting together, one of the other persons in the group may make available such managerial assistance. Making available managerial assistance means, among other

things, any arrangement whereby the BDC, through its directors or officers, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company.

In most cases, we will not have influence over the Board of Directors of our portfolio companies. In some instances, the Advisor's investment professionals may obtain board representation or observation rights in conjunction with our investments. In conjunction with the Advisor's Credit Committee and the Board, the Advisor will take an active approach in monitoring all investments, which includes reviews of financial performance on at least a quarterly basis and may include discussions with management and/or the equity sponsor. The monitoring process will begin with structuring terms and conditions which require the timely delivery and access to critical financial and business information regarding portfolio companies.

Pending investment in other types of "qualifying assets," as described above, our investments may consist of cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment, which we refer to, collectively, as "temporary investments," so that 70% of our assets are qualifying assets. See "Item 1. Business — Certain U.S. Federal Income Tax Consequences—Election to be Subject to be Taxed as a RIC." Typically, we will invest in U.S. Treasury bills or in repurchase agreements, provided that such agreements are fully collateralized by cash or securities issued by the U.S. government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price which is greater than the purchase price by an amount that reflects an agreed-upon interest rate. There is no percentage restriction on the proportion of our assets that may be invested in such repurchase agreements. However, if more than 25% of our gross assets constitute repurchase agreements from a single counterparty, we may not satisfy the diversification tests in order to qualify as a RIC. Thus, we do not intend to enter into repurchase agreements with a single counterparty in excess of this limit. The Advisor will monitor the creditworthiness of the counterparties with which we enter into repurchase agreement transactions.

Historically, the 1940 Act has permitted us to issue "senior securities," including borrowing money from banks or other financial institutions, only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence or issuance. In March 2018, the Small Business Credit Availability Act, or the SBCAA, was enacted into law. The SBCAA, among other things, amended the 1940 Act to reduce the asset coverage requirements applicable to business development companies from 200% to 150% so long as the business development company meets certain disclosure requirements and obtains certain approvals. On November 28, 2018, the Board approved the reduction of the Company's asset coverage requirements in Section 61(a)(2) of the 1940 Act to 150% and recommended the stockholders to vote in favor of the proposal at the special stockholder meeting on February 1, 2019. On February 1, 2019, the Company's stockholders approved the application of the reduced asset coverage. Effective February 2, 2019, the Company is permitted to borrow amounts such that its asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required.

While any senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard to asset

coverage. See "Item 1A. Risk Factors—Risks Relating to Our Business and Structure—Our strategy involves a high degree of leverage. We intend to continue to finance our investments with borrowed money, which will magnify the potential for gain or loss on amounts invested and may increase the risk of investing in us. The risks of investment in a highly leverage fund include volatility and possible distribution restrictions."

The 1940 Act imposes limitations on a BDC's issuance of preferred shares, which are considered "senior securities" and thus are subject to the 150% asset coverage requirement described above. In addition, (i) preferred shares must have the same voting rights as the common stockholders (one share, one vote); and (ii) preferred stockholders must have the right, as a class, to appoint directors to the Board.

As required by Rule 17j-1 under the 1940 Act and Rule 204A-1 under the Advisers Act, respectively, we and the Advisor have adopted codes of ethics which apply to, among others, our and the Advisor's executive officers, including our Chief Executive Officer and Chief Financial Officer, as well as the Advisor's officers, directors and employees. Our codes of ethics generally will not permit investments by our and the Advisor's personnel in securities that may be purchased or sold by us.

We hereby undertake to provide a copy of the codes to any person, without charge, upon request. Requests for a copy of the codes may be made in writing addressed to Investor Relations, Bain Capital Specialty Finance, Inc., 200 Clarendon Street, 37th Floor, Boston, Massachusetts 02116, Attention: Bain Capital Specialty Finance, Inc. Investor Relations, or by emailing us at creditinfo@baincapital.com.

We and the Advisor have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws and we are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation and designate a Chief Compliance Officer to be responsible for administering the policies and procedures.

The Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act") imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect us. For example:

The Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. We will continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance therewith.

We will delegate our proxy voting responsibility to the Advisor. The Proxy Voting Policies and Procedures of the Advisor are set forth below. The guidelines will be reviewed periodically by the Advisor and our non-interested directors will receive a copy annually, and, accordingly, are subject to change.

An investment adviser registered under the Advisers Act has a fiduciary duty to act solely in the best interests of its clients. As part of this duty, the Advisor recognizes that conflicts of interest may arise from time to time in relation to proxy voting requirements. A conflict between the Advisor and any client can arise in a number of situations. The following non-exclusive examples illustrate conflicts of interest that could arise:

These policies and procedures for voting proxies are intended to comply with Section 206 of, and Rule 206(4)-6 under, the Advisers Act.

The Advisor intends to vote proxies or similar corporate actions in accordance with the best interests of our shareholders, taking into account such factors as it deems relevant in its sole discretion. Upon receipt of a proxy request, the Advisor's Operations department contacts a senior investment professional responsible for the issuer. The senior investment professional communicates the proxy voting decision to Operations. The hard-copy documentation is completed by Operations and sent back to the appropriate party. Operations maintains a log of all proxy voting documentation received and the status thereof.

We are committed to maintaining the privacy of our stockholders and to safeguarding their non-public personal information. The following information is provided to help investors understand what personal information we collect, how we protect that information and why, in certain cases, we may share information with select other parties.

Pursuant to our privacy policy, we will not disclose any non-public personal information concerning any of our stockholders who are individuals unless the disclosure meets certain permitted exceptions under Regulation S-P under the Gramm — Leach Bliley Act, as amended. We generally will not use or disclose any stockholder information for any purpose other than as required by law.

We may collect non-public information about investors from our Subscription Agreements or other forms, such as name, address, account number and the types and amounts of investments, and information about transactions with us or our affiliates, such as participation in other investment programs, ownership of certain types of accounts or other account data and activity. We may disclose the information that we collect from our stockholders or former stockholders, as described above, only to our affiliates and service providers and only as allowed by applicable law or regulation. Any party that receives this information will use it only for the services required by us and as allowed by applicable law or regulation, and is not permitted to share or use this information for any other purpose. To protect the non-public personal information of individuals, we permit access only by authorized personnel who need access to that information to provide services to us and our stockholders.

In order to guard our stockholders' non-public personal information, we maintain physical, electronic and procedural safeguards that are designed to comply with applicable law. Non-public personal information that we collect about our stockholders will generally be stored on secured servers. An individual stockholder's right to privacy extends to all forms of contact with us, including telephone, written correspondence and electronic media, such as the Internet.

Pursuant to our privacy policy, we will provide a clear and conspicuous notice to each investor that details our privacy policies and procedures at the time of the investor's subscription.

We currently are, and expect to remain, an "emerging growth company," as that term is used in the JOBS Act until the earliest of:

Under the JOBS Act, we are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act, which would require that our independent registered public accounting firm provide an attestation report on the effectiveness of our internal control over financial reporting. This may increase the risk that material weaknesses or other deficiencies in our internal control over financial reporting go undetected. See Part I, Item 1A. of this Form 10-K "Risk Factors—Risks Related to the IPO and Our Common Stock — We will incur significant costs as a result of being a public company" and "Efforts to comply with Section 404 of the Sarbanes-Oxley Act will involve significant expenditures, and non-compliance with Section 404 of the Sarbanes-Oxley Act may adversely affect us and the market price of our common stock."

In addition, Section 7(a)(2)(B) of the Securities Act and Section 13(a) of the Exchange Act, as amended by Section 102(b) of the JOBS Act, provide that an emerging growth company can take advantage of the extended transition period for complying with new or revised accounting standards. However, pursuant to Section 107 of the JOBS Act, we have chosen to "opt out" of such extended transition period, and as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Our decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable.

Our address is 200 Clarendon Street, 37^th Floor, Boston, MA 02116. Our phone number is (617) 516-2000, and our internet address is www.baincapitalbdc.com. We make available, free of charge, on our website our proxy statement, annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file such material with, or furnish it to, the U.S. Securities and Exchange Commission, or SEC. Information contained on our website is not incorporated by reference into this annual report on Form 10-K and you should not consider information contained on our website to be part of this annual report on Form 10-K or any other report we file with the SEC.

The SEC also maintains a website that contains reports, proxy and information statements and other information we file with the SEC at www.sec.gov.

The following discussion is a general summary of the material U.S. federal income tax considerations applicable to us and to an investment in shares of our common stock. This summary does not purport to be a complete description of the income tax considerations applicable to such an investment. For example, we have not described certain considerations that may be relevant to certain types of holders subject to special treatment under U.S. federal income tax laws, including stockholders subject to the alternative minimum tax, tax-exempt organizations, insurance companies, dealers in securities, traders in securities that elect to mark-to-market their securities holdings, pass-through entities (including S-corporations) pension plans and trusts, financial institutions, real estate investment trusts ("REITs"), RICs, persons that have a functional currency (as defined in Section 985 of the Code) other than the U.S. dollar and financial institutions. This summary assumes that investors hold shares of our common stock as capital assets (within the meaning of Section 1221 of the Code). The discussion is based upon the Code, Treasury regulations, and administrative and judicial interpretations, each as of the date of the filing of this prospectus and all of which are subject to change, possibly retroactively, which could affect the continuing validity of this discussion. We have not sought and will not seek any ruling from the Internal Revenue Service (the "IRS"), regarding any offering of our securities. This summary does not discuss any aspects of U.S. estate or gift tax or foreign, state or local tax. It does not discuss the special treatment under U.S. federal income tax laws that could result if we were to invest in tax-exempt securities or certain other investment assets. For purposes of this discussion, a "U.S. stockholder" is a beneficial owner of shares of our common stock that is, for U.S. federal income tax purposes:

For purposes of this discussion, a "Non-U.S. stockholder" is a beneficial owner of shares of our common stock that is not a U.S. stockholder or a partnership (or an entity or arrangement treated as a partnership) for U.S. federal income tax purposes.

If a partnership (including an entity treated as a partnership for U.S. federal income tax purposes) holds shares of our common stock, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. A prospective investor that is a partner in a partnership that will hold shares of our common stock should consult its tax advisors with respect to the purchase, ownership and disposition of shares of our common stock. Tax matters are very complicated and the tax consequences to each stockholder of the ownership and disposition of shares of our common stock will depend on the facts of his, her or its particular situation. You should consult your own tax adviser regarding the specific tax consequences of the ownership and disposition of shares of our common stock to you, including tax reporting requirements, the applicability of U.S. federal, state and local tax laws and non-U.S. tax laws, eligibility for the benefits of any applicable income tax treaty and the effect of any possible changes in the tax laws.

We have elected to be treated as a RIC under Subchapter M of the Code, beginning with our taxable year ended December 31, 2016. As a RIC, we generally will not have to pay corporate-level U.S. federal income taxes on any net ordinary income or capital gains that we timely distribute to our stockholders as dividends. To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements (as described below). In addition, we must distribute to our stockholders, for each taxable year, dividends of an amount at least equal to 90% of our "investment company taxable income," which is generally our net ordinary income plus the excess of realized net short-term capital gains over realized net long-term capital losses and determined without regard to any deduction for dividends paid (the "Annual Distribution Requirement"). Although not required for us to maintain our RIC tax status, in order to preclude the imposition of a 4% nondeductible federal excise tax imposed on RICs, we must distribute to our stockholders in respect of each calendar year dividends of an amount at least equal to the sum of (1) 98% of our net ordinary income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of the excess (if any) of our realized capital gains over our realized capital losses, or capital gain net income (adjusted for certain ordinary losses), generally for the one-year period ending on October 31 of the calendar year and (3) the sum of any net ordinary income plus capital gains net income for preceding years that were not distributed during such years and on which we paid no federal income tax (the "Excise Tax Avoidance Requirement"). If we qualify as a RIC and satisfy the Annual Distribution Requirement, then we will not be subject to U.S. federal income tax on the portion of our investment company taxable income and net capital gain (generally, net long-term capital gain in excess of net short-term capital loss) that we timely distribute (or are deemed to timely distribute) as dividends to our stockholders. We will be subject to U.S. federal income tax at the regular corporate rates on any income or capital gain not distributed (or deemed distributed) to our stockholders.

In order to qualify as a RIC for U.S. federal income tax purposes, we must, among other things:

We may invest in partnerships, including qualified publicly traded partnerships, which may result in our being subject to state, local or foreign income, franchise or other tax liabilities. For the purpose of determining whether the Company satisfies the 90% Income Test and the Diversification Tests described above, the character of our distributive share of items of income, gain, losses, deductions and credits derived through any investments in companies that are treated as partnerships for U.S. federal income tax purposes (other than certain publicly traded partnerships), or are otherwise treated as disregarded from us for U.S. federal income tax purposes, generally will be determined as if we realized these tax items directly. Further, for purposes of calculating the value of our investment in the securities of an issuer for purposes of determining the 25% requirement described above, the Company's proper proportion of any investment in the securities of that issuer that are held by a member of our "controlled group" must be aggregated with our investment in that issuer. A controlled group is one or more chains of corporations connected through stock ownership with us if (a) at least 20% of the total combined voting power of all classes of voting stock of each of the corporations is owned directly by one or more of the other corporations, and (b) we directly own at least 20% or more of the combined voting stock of at least one of the other corporations.

In addition, as a RIC we are subject to ordinary income and capital gain distribution requirements under U.S. federal excise tax rules for each calendar year. If we do not meet the required distributions we will be subject to a 4% nondeductible federal excise tax on the undistributed amount. The failure to meet U.S. federal excise tax distribution requirements will not cause us to lose our RIC status. Although we currently intend to make sufficient distributions each taxable year to satisfy the U.S. federal excise tax requirements, under certain circumstances, we may choose to retain taxable income or capital gains in excess of current year distributions into the next tax year in an amount less than what would trigger payments of federal income tax under Subchapter M of the Code. We may then be required to pay a 4% excise tax on such income or capital gains.

A RIC is limited in its ability to deduct expenses in excess of its investment company taxable income. If our deductible expenses in a given taxable year exceed our investment company taxable income, we may incur a net operating loss for that taxable year. However, a RIC is not permitted to carry forward net operating losses to subsequent taxable years and such net operating losses do not pass through to its

stockholders. In addition, deductible expenses can be used only to offset investment company taxable income, not net capital gain. A RIC may not use any net capital losses (that is, the excess of realized capital losses over realized capital gains) to offset its investment company taxable income, but may carry forward such net capital losses, and use them to offset future capital gains, indefinitely. Any underwriting fees paid to us are not deductible. Due to these limits on deductibility of expenses and net capital losses, we may for tax purposes have aggregate taxable income for several taxable years that we are required to distribute and that is taxable to our stockholders even if such taxable income is greater than the net income we actually earn during those taxable years.

We may be required to recognize taxable income in circumstances in which we do not receive cash. For example, if we hold debt obligations that are treated under applicable tax rules as having OID (such as debt instruments with PIK interest or, in certain cases, with increasing interest rates or issued with warrants), we must include in income each year a portion of the OID that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year. Because any OID accrued will be included in our investment company taxable income for the taxable year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, even though we will not have received any corresponding cash amount. Furthermore, a portfolio company in which we hold equity or debt instruments may face financial difficulty that requires us to work out, modify, or otherwise restructure such equity or debt instruments. Any such restructuring could, depending upon the terms of the restructuring, cause us to incur unusable or nondeductible losses or recognize future non-cash taxable income.

Certain of our investment practices may be subject to special and complex U.S. federal income tax provisions that may, among other things, produce income that will not be qualifying income for purposes of the 90% Income Test. We intend to monitor our transactions and may make certain tax elections that are intended to maintain our status as a RIC and avoid a fund-level tax.

Gain or loss realized by us from warrants acquired by us as well as any loss attributable to the lapse of such warrants generally will be treated as capital gain or loss. Such gain or loss generally will be long term or short term, depending on how long we held a particular warrant.

Although we do not presently expect to do so, we are authorized to borrow funds and to sell assets in order to satisfy distribution requirements. However, under the 1940 Act, we are not permitted to make distributions to our stockholders while our debt obligations and other senior securities are outstanding unless certain "asset coverage" tests are met. Moreover, our ability to dispose of assets to meet our distribution requirements may be limited by (1) the illiquid nature of our portfolio and/or (2) other requirements relating to our qualification as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such dispositions at times that, from an investment standpoint, are not advantageous.

Some of the income and fees that we may recognize, such as fees for providing managerial assistance, certain fees earned with respect to our investments, income recognized in a work-out or restructuring of a portfolio investment, or income recognized from an equity investment in an operating partnership, will not satisfy the 90% Income Test. In order to manage the risk that such income and fees might disqualify us as a RIC for a failure to satisfy the 90% Income Test, we may be required to recognize such income and fees indirectly through one or more entities treated as corporations for U.S. federal income tax purposes. Such corporations will be required to pay U.S. corporate income tax on their earnings, which ultimately will reduce our return on such income and fees.

If we were unable to qualify for treatment as a RIC and are unable to cure the failure, for example, by disposing of certain investments quickly or raising additional capital to prevent the loss of RIC status, we would be subject to tax on all of our taxable income at regular corporate rates (and any applicable U.S. state and local taxes). The Code provides some relief from RIC disqualification due to failures to comply with the 90% Income Test and the Diversification Tests, although there may be additional taxes due in such cases. We cannot assure you that we would qualify for any such relief should we fail the 90% Income Test or the Diversification Tests.

Should failure occur, not only would all our taxable income be subject to tax at regular corporate rates (as well as any applicable U.S. state and local taxes), we would not be able to deduct dividend distributions to stockholders, nor would they be required to be made. Distributions, including distributions of net long-term capital gain, would generally be taxable to our stockholders as ordinary dividend income to the extent of our current and accumulated earnings and profits. Subject to certain limitations under the Code, certain corporate stockholders would be eligible to claim a dividends received deduction with respect to such dividends and non-corporate stockholders would generally be able to treat such dividends as "qualified dividend income," which is subject to reduced rates of U.S. federal income tax. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder's tax basis, and any remaining distributions would be treated as a capital gain. If we fail to qualify as a RIC, we may be subject to regular corporate tax on any net built-in gains with respect to certain of our assets (i.e., the excess of the aggregate gains, including items of income, over aggregate losses that would have been realized with respect to such assets if we had been liquidated) that we elect to recognize on requalification or when recognized over the next five taxable years.

Investing in our common stock involves a number of significant risks. The investor should be aware of various risks, including those described below. The investor should carefully consider these risk factors, together with all of the other information included in this Annual Report. The risks set out below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us may also impair our operations and performance. If any of the following events occur, our business, financial condition, results of operations and cash flows could be materially and adversely affected. In such case, the net asset value of our common stock could decline, and an investor may lose all or part of his or her investment.

We began operations on October 13, 2016 and have limited operating history. As a result, we have limited financial information on which you can evaluate an investment in us or our prior performance. There can be no assurance that we will achieve the results achieved by past investments of Bain Capital Credit or our Advisor. Past performance should not be relied upon as an indication of future results. We are subject to all of the business risks and uncertainties associated with any new business, including the risk that we will not achieve our investment objectives and that the value of a stockholder's investment could decline substantially or that the stockholder will suffer a complete loss of its investment in us.

We are the first BDC that Bain Capital Credit or our Advisor has managed. The 1940 Act and the Code impose numerous constraints on the operations of BDCs and RICs that do not apply to the majority of other investment vehicles managed by Bain Capital Credit or our Advisor. We, our Advisor and Bain Capital Credit have limited experience operating or advising under these constraints, which may hinder

our ability to take advantage of attractive investment opportunities and to achieve our investment objectives.

We may be unable to meet our investment objectives or investment strategy.

Investing in us is intended for long-term investors who can accept the risks associated with investing primarily in potentially illiquid, privately negotiated (i) senior first lien, stretch senior (as further described hereinafter), senior second lien and unitranche loans, (ii) mezzanine debt and other junior investments and (iii) secondary purchases of assets or portfolios that primarily consist of middle market corporate debt. We may also invest, from time to time, in equity securities, distressed debt, debtor-in-possession loans, structured products, structurally subordinate loans, investments with deferred interest features, zero-coupon securities and defaulted securities. There can be no assurance that we will achieve our investment or performance objectives, including our targeted returns. Accordingly, the possibility of partial or total loss of our capital exists.

We are dependent upon key personnel of Bain Capital Credit and our Advisor.

Our ability to achieve our investment objectives will depend on our ability to manage our business and to grow our investments and earnings. This will depend, in turn, on the financial and managerial expertise of our Advisor, including with resources utilized from Bain Capital Credit. Although we have attempted to foster a team approach to investing, the loss of key individuals employed by Bain Capital Credit or our Advisor could have a material adverse effect on our financial condition, performance and ability to achieve our investment objectives. If these individuals do not maintain their employment or other existing relationships with Bain Capital Credit or our Advisor and do not develop new relationships with other sources of investment opportunities available to us, we may not be able to grow our investment portfolio.

Bain Capital Credit's and our Advisor's investment professionals have substantial responsibilities in connection with the management of other Bain Capital Credit Clients. The personnel of Bain Capital Credit may be called upon to provide managerial assistance to our portfolio companies. These demands on their time, which may increase as the number of investments grow, may distract them or slow our rate of investment. The employees of our Advisor and other Bain Capital Credit investment professionals expect to devote such time and attention to the conduct of our business as such business shall reasonably require. However, there can be no assurance, for example, that the members of our Advisor or such investment professionals will devote any minimum number of hours each week to our affairs or that they will continue to be employed by Bain Capital Credit. Subject to certain remedies, in the event that certain employees of our Advisor cease to be actively involved with us, we will be required to rely on the ability of Bain Capital Credit to identify and retain other investment professionals to conduct our business. The Board intends to evaluate the commitment and performance of our Advisor in conjunction with the annual approval of the Investment Advisory Agreement and Administration Agreement.

Under the Resource Sharing Agreement, Bain Capital Credit has agreed to provide our Advisor with experienced investment professionals necessary to fulfill its obligations under the Investment Advisory Agreement. The Resource Sharing Agreement, however, may be terminated by either party on 60 days' notice. We cannot assure stockholders that Bain Capital Credit will fulfill its obligations under the Resource Sharing Agreement. We also cannot assure stockholders that our Advisor will enforce the Resource Sharing Agreement if Bain Capital Credit fails to perform, that such agreement will not be terminated by either party or that we will continue to have access to the investment professionals of Bain Capital Credit and its affiliates or their information and deal flow.

Further, we depend upon Bain Capital Credit and our Advisor to maintain their relationships with private equity sponsors, placement agents, investment banks, management groups and other financial

institutions, and we expect to rely to a significant extent upon these relationships to provide us with potential investment opportunities. If they fail to maintain such relationships, or to develop new relationships with other sources of investment opportunities, we will not be able to grow our investment portfolio. In addition, individuals with whom the senior professionals of Bain Capital Credit and our Advisor have relationships are not obligated to provide us with investment opportunities, and we cannot assure you that these relationships will generate investment opportunities for us in the future.

We may not replicate the historical results achieved by Bain Capital Credit, or by our Advisor or its affiliates.

Our primary focus in making investments may differ from those of existing Bain Capital Credit Funds and Related Funds. Past performance should not be relied upon as an indication of future results. There can be no guarantee that we will replicate our own historical performance, the historical success of Bain Capital Credit or the historical performance of Bain Capital Credit Funds and/or Related Funds, and we caution stockholders that our investment returns could be substantially lower than the returns achieved by them in prior periods. We cannot assure you that we will be profitable in the future or that our Advisor will be able to continue to implement our investment objectives with the same degree of success as it has had in the past. Additionally, all or a portion of the prior results may have been achieved in particular market conditions that may never be repeated. Moreover, current or future market volatility and regulatory uncertainty may have an adverse impact on our future performance.

The due diligence process that our Advisor undertakes in connection with our investments may not reveal all the facts that may be relevant in connection with an investment.

Our Advisor's due diligence may not reveal all of a company's liabilities and may not reveal other weaknesses in its business. There can be no assurance that our due diligence process will uncover all relevant facts that would be material to an investment decision. Before making an investment in, or a loan to, a company, our Advisor will assess the strength and skills of the company's management team and other factors that it believes are material to the performance of the investment. In making the assessment and otherwise conducting customary due diligence, our Advisor will rely on the resources available to it and, in some cases, an investigation by third parties. This process is particularly important and highly subjective with respect to newly organized entities because there may be little or no information publicly available about the entities. We may make investments in, or loans to, companies, including middle market companies, which are not subject to public company reporting requirements, including requirements regarding preparation of financial statements, and will, therefore, depend upon the compliance by investment companies with their contractual reporting obligations and the ability of our Advisor's investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and we may lose money on our investments. As a result, the evaluation of potential investments and the ability to perform due diligence on and effective monitoring of investments may be impeded, and we may not realize the returns which we expect on any particular investment. In the event of fraud by any company in which we invest or with respect to which we make a loan, we may suffer a partial or total loss of the amounts invested in that company.

Global capital markets could enter a period of severe disruption and instability. These conditions have historically affected and could again materially and adversely affect debt and equity capital markets in the United States and around the world and our business.

From time to time, the global capital markets may experience periods of disruption and instability resulting in increasing spreads between the yields realized on riskier debt securities and those realized on risk-free securities and a lack of liquidity in parts of the debt capital markets, significant write-offs in the financial services sector relating to subprime mortgages and the re-pricing of credit risk in the broadly

syndicated market. Deteriorating market conditions could result in increasing volatility and illiquidity in the global credit, debt and equity markets generally. The duration and ultimate effect of such market conditions cannot be forecasted. Deteriorating market conditions and uncertainty regarding economic markets generally could result in declines in the market values of potential investments or declines in the market values of investments after they are made or acquired by us and affect the potential for liquidity events involving such investments or portfolio companies. Such declines may be exacerbated by other events, such as the failure of significant financial institutions or hedge funds, dislocations in other investment markets or other extrinsic events. Applicable accounting standards require us to determine the fair value of our investments as the amount that would be received in an orderly transaction between market participants at the measurement date. While most of our investments are not publicly traded, as part of our valuation process we consider a number of measures, including comparison to publicly traded securities. As a result, volatility in the public capital markets can adversely affect our investment valuations.

During any such periods of market disruption and instability, we and other companies in the financial services sector may have limited access, if any, to alternative markets for debt and equity capital. Equity capital may be difficult to raise because, subject to some limited exceptions that will apply to us as a BDC, we will generally not be able to issue additional shares of our common stock at a price less than net asset value ("NAV") without first obtaining approval for such issuance from our stockholders and our Independent Directors. In addition, our ability to incur indebtedness (including by issuing preferred stock) is limited by applicable regulations such that our asset coverage, as defined in the 1940 Act, must equal at least 200% (or 150% if certain disclosure and approval requirements are met) immediately after each time we incur indebtedness. The debt capital that will be available, if any, may be at a higher cost and on less favorable terms and conditions in the future. Any inability to raise capital could have a negative effect on our business, financial condition and results of operations.

A prolonged period of market illiquidity may cause us to reduce the volume of loans and debt securities we originate and/or fund and adversely affect the value of our portfolio investments, which could have a material and adverse effect on our business, financial condition, results of operations and cash flows.

We may also invest a portion of our capital in debt securities issued by issuers domiciled in Europe, including issuers domiciled in the U.K. The government of the U.K. held an in-or-out referendum on the U.K.'s membership in the EU on June 23, 2016. The referendum resulted in a vote in favor of the exit of the U.K. from the EU ("Brexit"). In March 2017, the U.K. formally invoked Article 50 of the Treaty of Lisbon to begin the process under which the U.K. shall withdraw from the EU in due course. Upon invoking Article 50, the U.K. triggered a two-year period for negotiation of the terms of the withdrawal from the EU. However, there remains a significant degree of uncertainty about how negotiations relating to the U.K.'s withdrawal from the EU and new trade agreements will be conducted, as well as the potential consequences and precise timeframe for Brexit. During the negotiating period and beyond, the impact of Brexit on the U.K. and European economies and the broader global economy could be significant, resulting in negative impacts on currency and financial markets generally, such as increased volatility and illiquidity, and potentially lower economic growth in markets in the U.K., Europe and globally, which could adversely affect us.

Adverse developments in the credit markets may impair our ability to enter into new debt financing arrangements.

During the economic downturn in the United States that began in mid-2007, many commercial banks and other financial institutions stopped lending or significantly curtailed their lending activity. In addition, in an effort to stem losses and reduce their exposure to segments of the economy deemed to be high risk, some financial institutions limited refinancing and loan modification transactions and reviewed the terms of existing facilities to identify bases for accelerating the maturity of existing lending facilities. If

these conditions recur, it may be difficult for us to enter into a new credit or other borrowing facility, obtain other financing to finance the growth of our investments, or refinance any outstanding indebtedness on acceptable economic terms, or at all.

Our executive officers and directors, our Advisor, Bain Capital Credit and their affiliates, officers, directors and employees may face certain conflicts of interest.

The executive officers and directors and other employees of Bain Capital Credit and our Advisor, including our portfolio managers, are, or may be, investors in, or serve, or may serve, as officers, directors, members, or principals of, entities that operate in the same or a related line of business as we do, or of Bain Capital Credit Clients. Similarly, Bain Capital Credit and Affiliated Advisors may have other clients with similar, different or competing investment objectives. Accordingly, the members of the professional staff of Bain Capital Credit and our Advisor will have demands on their time for the investment, monitoring and other functions of other funds advised by Bain Capital Credit.

In serving in these multiple capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the best interests of, or may be adverse to the interests of, us or our stockholders. Although the professional staff of Bain Capital Credit will devote as much time to our management as appropriate to enable our Advisor to perform its duties in accordance with the Investment Advisory Agreement, Bain Capital Credit has, and will continue to have management responsibilities for Bain Capital Credit Clients. There is a potential that we will compete with these Bain Capital Credit Clients, for capital and investment opportunities. As a result, Bain Capital Credit and our portfolio managers will face conflicts in the allocation of investment opportunities among us and the Bain Capital Credit Clients and may make certain investments that are appropriate for us but for which we receive a relatively small allocation of such investment or no allocation at all. Bain Capital Credit intends to allocate investment opportunities among eligible Bain Capital Credit Clients in a manner that is fair and equitable over time and consistent with its allocation policy. However, we can offer no assurance that such opportunities will be allocated to us fairly or equitably in the short-term or over time, and we may not be given the opportunity to participate in investments made by investment funds managed by our Advisor or an investment manager affiliated with our Advisor, including Bain Capital Credit. If our Advisor recommends a particular level of investment for us, and the aggregate amount recommended by our Advisor for us and for other participating Bain Capital Credit Clients exceeds the amount of the investment opportunity, subject to applicable law, investments made pursuant to exemptive relief will generally be allocated among the participants pro rata based on capital available for investment in the asset class being allocated and the respective governing documents of such Bain Capital Credit Clients. We expect that available capital for our investments will be determined based on the amount of cash on-hand, existing commitments and reserves, if any, the targeted leverage level, targeted asset mix and diversification requirements and other investment policies and restrictions set by the Board or as imposed by applicable laws, rules, regulations or interpretations. In instances when investments are not made pursuant to exemptive relief, allocations among us and other Bain Capital Credit Clients, subject to applicable law and regulation, will be done in accordance with our Advisor's trade allocation practice, which is generally pro rata based on order size. There can be no assurance that we will be able to participate in all investment opportunities that are suitable for us.

Further, to the extent permitted by applicable law, we and our affiliates may own investments at different levels of a portfolio company's capital structure or otherwise own different classes of a portfolio company's securities, which may give rise to conflicts of interest or perceived conflicts of interest. Conflicts may also arise because decisions regarding our portfolio may benefit our affiliates. Our affiliates may pursue or enforce rights with respect to one of our portfolio companies, and those activities may have an adverse effect on us.

Bain Capital Credit's Credit Committee, our Advisor or its affiliates may, from time to time, possess material non-public information, limiting our investment discretion.

The executive officers and directors, principals and other employees of Bain Capital Credit and our Advisor may serve as directors of, or in a similar capacity with, portfolio companies in which we invest, the securities of which are purchased or sold on our behalf, and may come into possession of material non-public information with respect to issuers in which we may be considering making an investment. In the event that material non-public information is obtained with respect to such companies, or we become subject to trading restrictions under the internal trading policies of those companies, the policies of Bain Capital, or as a result of applicable law or regulations, we could be prohibited for a period of time or indefinitely from purchasing or selling the securities of such companies, or we may be precluded from providing such information or other ideas to other funds affiliated with Bain Capital that benefit from such information, and this prohibition may have an adverse effect on us.

Our management and incentive fee structure may create incentives for our Advisor that are not fully aligned with the interests of our stockholders and may induce our Advisor to make speculative investments.

In the course of our investing activities, we will pay management and incentive fees to our Advisor. We have entered into an Investment Advisory Agreement with our Advisor that provides that these fees will be based on the value of our gross assets (which includes assets purchased with borrowed amounts or other forms of leverage but excludes cash and cash equivalents), instead of our net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable). As a result, investors in our common stock will invest on a "gross" basis and receive distributions on a "net" basis after expenses, including the costs of leverage, resulting in a lower rate of return than one might achieve if distributions were made on a gross basis. Because our management fees are based on the value of our gross assets, the incurrence of debt or the use of leverage will increase the management fees due to our Advisor. As such, our Advisor may have an incentive to use leverage to make additional investments. In addition, as additional leverage would magnify positive returns, if any, on our portfolio, our incentive fee would become payable to our Advisor (i.e., exceed the Hurdle Amount) at a lower average return on our portfolio. Thus, if we incur additional leverage, our Advisor may receive additional incentive fees without any corresponding increase (and potentially with a decrease) in our net performance. Additionally, under the incentive fee structure, our Advisor may benefit when capital gains are recognized and, because our Advisor will determine when to sell a holding, our Advisor will control the timing of the recognition of such capital gains. As a result of these arrangements, there may be times when the management team of our Advisor has interests that differ from those of our stockholders, giving rise to a conflict. Furthermore, there is a risk our Advisor will make more speculative investments in an effort to receive this payment. Payment-in-kind ("PIK") interest and original issue discount ("OID") would increase our pre-incentive fee net investment income by increasing the size of the loan balance of underlying loans and increasing our assets under management ("AUM") and makes it easier for our Advisor to surpass the Hurdle Amount and increase the amount of incentive fees payable to our Advisor.

In addition, under the incentive fee structure, our Advisor may benefit when capital gains are recognized and, because our Advisor will determine when to sell a holding, our Advisor will control the timing of the recognition of such capital gains. As a result of these arrangements, there may be times when our Advisor has interests that differ from those of our stockholders, giving rise to a conflict. As a result, our Advisor may have an incentive to invest more in companies whose securities are likely to yield capital gains, as compared to income producing securities. Such a practice could result in our investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during cyclical economic downturns. PIK interest and OID would increase our pre-incentive fee net investment income by increasing the size of the loan balance of underlying loans and increasing our AUM and makes it easier for our Advisor to surpass the Hurdle Amount and increase the amount of

incentive fees payable to our Advisor. Our Advisor may thus have an incentive to invest in deferred interest securities in circumstances where it would not have done so but for the opportunity to continue to earn the incentive fee even when the issuers of the deferred interest securities would not be able to make actual cash payments to us on such securities. Under these investments, we accrue the interest over the life of the investment but do not receive the cash income from the investment until the end of the term. Our net investment income used to calculate the income portion of our incentive fee, however, includes accrued interest. Thus, a portion of this incentive fee is based on income that we have not yet received in cash. This risk could be increased because our Advisor is not obligated to reimburse us for any incentive fees received even if we subsequently incur losses or never receive in cash the accrued income (including accrued income with respect to OID, PIK interest and zero coupon securities).

Additionally, the fee we pay our Advisor will effectively be higher after the completion of the IPO. With respect to any period prior to the IPO, pursuant to a waiver agreement with our Advisor, all base management fees in excess of an annual rate of 0.75% of the aggregate gross assets excluding cash and cash equivalents were contractually waived by our Advisor and not subject to recoupment by our Advisor. As a result, upon completion of the IPO, the base management fee has returned to an annual rate of 1.5% of our gross assets. Further, upon completion of the IPO, we will pay our Advisor a 17.5% incentive fee based on pre-incentive fee net investment income and capital gains, an increase from 15.0% prior to the completion of the IPO. In addition, prior to the completion of the IPO, the Administrator did not seek reimbursement for certain expenses payable by us under the Administration Agreement.

The Board is charged with protecting our interests by monitoring how our Advisor addresses these and other conflicts of interests associated with its services and compensation. While they will not review or approve each investment decision or incurrence of leverage, our Independent Directors will periodically review our Advisor's services and fees as well as its portfolio management decisions and portfolio performance. In connection with these reviews, our Independent Directors will consider whether our fees and expenses (including those related to leverage) remain appropriate.

We may invest, to the extent permitted by law, in the securities and instruments of other investment companies, including private funds, and, to the extent we so invest, bear our ratable share of any such investment company's expenses, including management and performance fees. We also remain obligated to pay management and incentive fees to our Advisor with respect to the assets invested in the securities and instruments of other investment companies. With respect to each of these investments, each of our stockholders bears his or her share of the management and incentive fees of our Advisor as well as indirectly bearing the management and performance fees and other expenses of any investment companies in which we invest.

We expect to make many of our portfolio investments in the form of loans and securities that are not publicly traded and for which no market based price quotation is available. As a result, the Board will determine the fair value of these loans and securities in good faith as described below in "—The majority of our portfolio investments are recorded at fair value as determined in good faith by the Board and, as a result, there may be uncertainty as to the value of our portfolio investments." Each of the interested members of the Board has an indirect pecuniary interest in our Advisor. The participation of our Advisor's investment professionals in our valuation process, and the pecuniary interest in our Advisor by certain members of the Board, could result in a conflict of interest as our Advisor's management fee is based, in part, on the value of our gross assets, and our incentive fees will be based, in part, on realized gains and realized and unrealized losses.

Conflicts may arise related to other arrangements with Bain Capital Credit and our Advisor's other affiliates.

We have entered into an Administration Agreement with our Administrator pursuant to which we are required to pay to our Administrator our allocable portion of overhead and other expenses incurred by our Administrator in performing its obligations under such Administration Agreement, such as rent and our allocable portion of the cost of our chief financial officer and chief compliance officer and their respective staffs. In addition, our Advisor has entered into a Resource Sharing Agreement with Bain Capital Credit pursuant to which Bain Capital Credit provides our Advisor with the resources necessary to fulfill its obligations under the Investment Advisory Agreement. These agreements create conflicts of interest that the Independent Directors will monitor.

Our Advisor has limited liability and is entitled to indemnification under the Investment Advisory Agreement.

Under the Investment Advisory Agreement, our Advisor has not assumed any responsibility to us other than to render the services called for under that agreement. It is not responsible for any action of the Board in following or declining to follow our Advisor's advice or recommendations. Under the Investment Advisory Agreement, our Advisor, its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with our Advisor, including without limitation our Administrator, will not be liable to us for any actions taken or omitted to be taken by our Advisor in connection with the performance of any of its duties or obligations under the Investment Advisory Agreement or otherwise as an investment adviser of us, except to the extent specified in Section 36(b) of the 1940 Act concerning loss resulting from a breach of fiduciary duty (as the same is finally determined by judicial proceedings) with respect to the receipt of compensation for services. In addition, as part of the Investment Advisory Agreement, we have agreed to indemnify our Advisor and each of its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with our Advisor, and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys' fees and amounts reasonably paid in settlement) incurred by such party in or by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of us or our security holders) arising out of or otherwise based upon the performance of any of our Advisor's duties or obligations under the Investment Advisory Agreement or otherwise as an investment adviser of us, except in respect of any liability to us or our security holders to which such party would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of our Advisor's duties or by reason of the reckless disregard of our Advisor's duties and obligations under the Investment Advisory Agreement. These protections may lead our Advisor to act in a riskier manner when acting on our behalf than it would when acting for its own account.

We operate in an increasingly competitive market for investment opportunities, which could reduce returns and result in losses.

The business of investing in assets meeting our investment objectives is highly competitive. Competition for investment opportunities includes a growing number of nontraditional participants, such as hedge funds, senior private debt funds, including BDCs, and other private investors, as well as more traditional lending institutions and competitors. Some of these competitors may have more experience than us and considerably greater resources than us and access to greater amounts of capital and to capital that may be committed for longer periods of time or may have different return thresholds than ours, and thus these competitors may have advantages not shared by us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or the requirements we must satisfy to maintain our RIC qualification. Increased competition for, or a diminishment in the

available supply of, investments suitable for us could result in lower returns on such investments and have a material adverse effect on our business, financial condition and results of operations. As a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we can offer no assurance that we will be able to identify and make investments that are consistent with our investment objectives.

Moreover, the identification of attractive investment opportunities is difficult and involves a high degree of uncertainty. We may incur significant expenses in connection with identifying investment opportunities and investigating other potential investments that are ultimately not consummated, including expenses relating to due diligence, transportation, legal expenses and the fees of other third party advisors.

With respect to the investments we make, we will not seek to compete based primarily on the interest rates we will offer, and we believe that some of our competitors may make loans with interest rates that will be lower than the rates we offer. In the secondary market for acquiring existing loans, we expect to compete generally on the basis of pricing terms. With respect to all investments, we may lose some investment opportunities if we do not match our competitors' pricing, terms and structure. However, if we match our competitors' pricing, terms and structure, we may experience decreased net interest income, lower yields and increased risk of credit loss. We may also compete for investment opportunities with Bain Capital Credit Funds and Related Funds. See "—Our executive officers and directors, our Advisor, Bain Capital Credit and their affiliates, officers, directors and employees may face certain conflicts of interest."

We intend to access the capital markets periodically to issue debt or equity securities or borrow from financial institutions in order to obtain additional capital to fund new investments and grow our portfolio of investments. Unfavorable economic conditions could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. A reduction in the availability of new capital could limit our ability to grow. In addition, we are required to distribute in respect of each taxable year dividends for U.S. federal income tax purposes of an amount generally at least equal to 90% of the sum of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, for such taxable year to our stockholders to maintain our ability to be eligible for treatment as a RIC. Amounts so distributed will not be available to fund new investments or repay maturing debt. An inability on our part to access the capital markets successfully could limit our ability to grow our business and execute our business strategy fully and could decrease our earnings, if any, which would have an adverse effect on the value of our securities.

Further, we may pursue growth through acquisitions or strategic investments in new businesses. Completion and timing of any such acquisitions or strategic investments may be subject to a number of contingencies and risks. There can be no assurance that the integration of an acquired business will be successful or that an acquired business will prove to be profitable or sustainable.

Our business could be adversely affected in the event we default under our BCSF Revolving Credit Facility or any future credit or other borrowing facility.

We have entered into a revolving credit agreement ("BCSF Revolving Credit Facility") with us as equity holder, BCSF I, LLC, as borrower, and Goldman Sachs Bank USA ("Goldman Sachs") as sole lead arranger. In the event we default under our BCSF Revolving Credit Facility or any future credit or other borrowing facility, our business could be adversely affected as we may be forced to sell a portion of our investments quickly and prematurely at what may be disadvantageous prices to us in order to meet our outstanding payment obligations and/or support working capital requirements under such credit facility or such future credit or other borrowing facility, any of which would have a material adverse effect on our business, ability to pay dividends, financial condition, results of operations and cash flows. If we were

unable to obtain a waiver of a default from the lenders or holders of that indebtedness, as applicable, those lenders or holders could accelerate repayment under that indebtedness, which may result in cross-acceleration of other indebtedness. An acceleration could have a material adverse impact on our business, financial condition and results of operations.

In addition, following any such default, the agent for the lenders under the relevant credit facility or such future credit or other borrowing facility could assume control of the disposition of any or all of our assets, including the selection of such assets to be disposed and the timing of such disposition, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Lastly, as a result of any such default, we may be unable to obtain additional leverage, which could, in turn, affect our return on capital.

Our strategy involves a high degree of leverage. We intend to continue to finance our investments with borrowed money, which will magnify the potential for gain or loss on amounts invested and may increase the risk of investing in us. The risks of investment in a highly leverage fund include volatility and possible distribution restrictions.

The use of leverage magnifies the potential for gain or loss on amounts invested. The use of leverage is generally considered a speculative investment technique and increases the risks associated with investing in our securities. However, we currently borrow from, and may in the future issue debt securities to, banks, insurance companies and other lenders. Lenders of these funds will have fixed dollar claims on our assets that are superior to the claims of our common stockholders, and we would expect such lenders to seek recovery against our assets in the event of a default. We may pledge up to 100% of our assets and may grant a security interest in all of our assets under the terms of any debt instruments we may enter into with lenders. In addition, under the terms of our BCSF Revolving Credit Facility, the 2018-1 Notes and any future credit or other borrowing facility or other debt instrument we may enter into, we are likely to be required to use the net proceeds of any investments that we sell to repay a portion of the amount borrowed under such facility or instrument before applying such net proceeds to any other uses. If the value of our assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have had we not used leverage, thereby magnifying losses or eliminating our stake in a leveraged investment. Similarly, any decrease in our revenue or income will cause our net income to decline more sharply than it would have had we not borrowed. Such a decline would also negatively affect our ability to make dividend payments on our common stock or preferred stock. Our ability to service any debt will depend largely on our financial performance and will be subject to prevailing economic conditions and competitive pressures. In addition, our common stockholders will bear the burden of any increase in our expenses as a result of our use of leverage, including interest expenses and any increase in the base management fee payable to our Advisor.

We cannot assure you that our business will generate sufficient cash flow from operations or that future borrowings will be available to us under our BCSF Revolving Credit Facility or otherwise in an amount sufficient to enable us to repay our indebtedness or to fund our other liquidity needs. We may need to refinance all or a portion of our indebtedness on or before it matures. We cannot assure you that we will be able to refinance any of our indebtedness on commercially reasonable terms or at all. If we cannot service our indebtedness, we may have to take actions such as selling assets or seeking additional equity. We cannot assure you that any such actions, if necessary, could be effected on commercially reasonable terms or at all, or on terms that would not be disadvantageous to our stockholders or on terms that would not require us to breach the terms and conditions of our existing or future debt agreements.

As a BDC, we generally are required to meet a coverage ratio of total assets to total borrowings and other senior securities, which include all of our borrowings and any preferred stock that we may issue in the future, of at least 200%. If this ratio declines below 200%, we will not be able to incur additional debt and could be required to sell a portion of our investments to repay some debt when it is otherwise

disadvantageous for us to do so. This could have a material adverse effect on our operations, and we may not be able to make distributions. The amount of leverage that we employ will depend on our Advisor's assessment of market and other factors at the time of any proposed borrowing. We cannot assure stockholders that we will be able to obtain credit at all or on terms acceptable to us. The Small Business Credit Availability Act (the "SBCAA"), which was signed into law in March 2018, modifies the applicable section of the 1940 Act and decreases the asset coverage requirements applicable to BDCs from 200% to 150% (subject to either stockholder approval or approval of both a majority of the Board and a majority of directors who are not interested persons). On November 28, 2018, the Board approved the reduction of the Company's asset coverage requirements in Section 61(a)(2) of the 1940 Act to 150% and recommended the stockholders to vote in favor of the proposal at the special stockholder meeting on February 1, 2019. On February 1, 2019, the Company's stockholders approved the application of the reduced asset coverage. Effective February 2, 2019, the Company is permitted to borrow amounts such that its asset coverage ratio, as defined in the 1940 Act, is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required.

The following table illustrates the effect of leverage on returns from an investment in our common stock assuming that we employ (i) our actual asset coverage ratio as of December 31, 2018, (ii) a hypothetical asset coverage ratio of 200% and (iii) a hypothetical asset coverage ratio of 150%, each at various annual returns on our portfolio as of December 31, 2018, net of expenses. The calculations in the table below are hypothetical, and actual returns may be higher or lower than those appearing in the table below.

We are subject to risks associated with the current interest rate environment and to the extent we use debt to finance our investments, changes in interest rates will affect our cost of capital and net investment income.

An increase in interest rates from their historically low present levels may make it more difficult for our portfolio companies to service their obligations under the debt investments that we hold. Rising interest rates could also cause portfolio companies to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults. In July 2017, the head of the United Kingdom Financial Conduct Authority announced the intention to phase out the use of the London Interbank Offered Rate ("LIBOR" or "L") by the end of 2021. Because the statements made by the head of the United Kingdom Financial Conduct Authority are recent in nature, there is no definitive information regarding the future of LIBOR or of any particular replacement index rate. As such, 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 for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations. To the extent we borrow money to make investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we can offer no assurance that a significant change in market interest rates would not have a material adverse effect on our net investment income in the event we use debt to finance our investments. In periods of rising interest rates, our cost of funds would increase, which could reduce our net investment income. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. In addition, a rise in the general level of interest rates typically leads to higher interest rates applicable to our debt investments. Accordingly, an increase in interest rates may result in an increase of the amount of our pre-incentive fee net investment income, which could make it easier for us to meet or exceed the Hurdle Amount and, as a result, increase the incentive fees payable to our Advisor.

We are and may be subject to restrictions under our BCSF Revolving Credit Facility and any future credit or other borrowing facility that could adversely impact our business.

Our BCSF Revolving Credit Facility, and any future credit or other borrowing facility, may be backed by all or a portion of our loans and securities on which the lenders may have a security interest. We may pledge up to 100% of our assets and may grant a security interest in all of our assets under the terms of any debt instrument we enter into with lenders. We expect that any security interests we grant will be set forth in a pledge and security agreement and evidenced by the filing of financing statements by the agent for the lenders. In addition, we expect that the custodian for our securities serving as collateral for such loan would include in its electronic systems notices indicating the existence of such security interests and, following notice of occurrence of an event of default, if any, and during its continuance, will only accept transfer instructions with respect to any such securities from the lender or its designee. If we were to default under the terms of any debt instrument, the agent for the applicable lenders would be able to assume control of the timing of disposition of any or all of our assets securing such debt, which would have a material adverse effect on our business, financial condition, results of operations and cash flows.

In addition, any security interests as well as negative covenants included in our BCSF Revolving Credit Facility or any future credit or other borrowing facility may limit our ability to create liens on assets to secure additional debt and may make it difficult for us to restructure or refinance indebtedness at or prior to maturity or obtain additional debt or equity financing. In addition, if our borrowing base under our BCSF Revolving Credit Facility or any future credit or other borrowing facility were to decrease, we would be required to secure additional assets in an amount equal to any borrowing base deficiency. In the event that all of our assets are secured at the time of such a borrowing base deficiency, we could be required to

repay advances under the relevant credit facility or any other borrowing facility or make deposits to a collection account, either of which could have a material adverse impact on our ability to fund future investments and to pay distributions.

In addition, under our BCSF Revolving Credit Facility and any future credit or other borrowing facilities, we may be subject to limitations as to how borrowed funds may be used, which may include restrictions on geographic and industry concentrations, loan size, payment frequency and status, average life, collateral interests and investment ratings, as well as restrictions on leverage, which may affect the amount of funding that may be obtained. For example, proceeds of the loans under the BCSF Revolving Credit Facility may be used to acquire certain qualifying loans and such other uses as permitted under the BCSF Revolving Credit Facility. There may also be certain requirements relating to portfolio performance, including required minimum portfolio yield and limitations on delinquencies and charge-offs, a violation of which could limit further advances and, in some cases, result in an event of default. An event of default under our BCSF Revolving Credit Facility or any future credit or other borrowing facility could result in an accelerated maturity date for all amounts outstanding thereunder, which could have a material adverse effect on our business and financial condition. This could reduce our revenues and, by delaying any cash payment allowed to us under the relevant credit facility or any other borrowing facility until the lenders have been paid in full, reduce our liquidity and cash flow and impair our ability to grow our business and/or make distributions to stockholders required to maintain our ability to be eligible for treatment as a RIC.

We may be the target of securities litigation in the future, particularly if the value of shares of our common stock fluctuates significantly. We could also generally be subject to litigation, including derivative actions by our stockholders. In addition our investment activities subject us to litigation relating to the bankruptcy process and the normal risks of becoming involved in litigation by third parties. This risk is somewhat greater where we exercise control or significant influence over a portfolio company's direction. Any litigation could result in substantial costs and divert management's attention and resources from our business and cause a material adverse effect on our business, financial condition and results of operations.

The majority of our portfolio investments are recorded at fair value as determined in good faith by the Board and, as a result, there may be uncertainty as to the value of our portfolio investments.

We expect that many of our portfolio investments will take the form of loans and securities that are not publicly traded. The fair value of loans, securities and other investments that are not publicly traded may not have market quotations available and the fair value may not be readily determinable. If market quotations are not available or reliable, we will value these investments at fair value as determined in good faith by the Board, including to reflect significant events affecting the value of our investments. Many, if not all, of our investments (other than cash) may be classified as Level 3 under ASC Topic 820, Fair Value Measurement ("ASC 820"). This means that our portfolio valuations will be based on unobservable inputs and our own assumptions about how market participants would price the asset or liability in question. We expect that inputs into the determination of fair value of our portfolio investments will require significant management judgment or estimation. Even if observable market data are available, such information may be the result of consensus pricing information or broker quotes, which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimers materially reduces the reliability of such information. We retain the services of one or more independent service providers to review the valuation of these loans and securities. However, the ultimate determination of fair value will be made by the Board and not by such third-party valuation firm. The types of factors that the Board may take into account in determining the fair value of our investments generally include, as appropriate, comparison to publicly traded securities including such factors as yield, maturity and measures of credit quality, the

enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company's ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made in the future, comparisons to publicly traded companies, relevant credit market indices and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we consider the pricing indicated by the external event to corroborate our valuation.

Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these loans and securities existed. Also, since these valuations are, to a large extent, based on estimates, comparisons and qualitative evaluations of private information, our fair valuation process could make it more difficult for investors to accurately value our investments and could lead to undervaluation or overvaluation of our securities. In addition, the valuation of these types of securities may result in substantial write-downs and earnings volatility. Also, privately held companies frequently have less diverse product lines and smaller market presence than larger public competitors.

Our NAV could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such loans and securities. Further, our NAV as of a particular date may be materially greater than or less than the value that would be realized if our assets were to be liquidated as of such date. For example, if we were required to sell a certain asset or all or a substantial portion of our assets on a particular date, the actual price that we would realize upon the disposition of such asset or assets could be materially less than the value of such asset or assets as reflected in our NAV. Volatile market conditions could also cause reduced liquidity in the market for certain assets, which could result in liquidation values that are materially less than the values of such assets as reflected in our NAV.

We will adjust on a quarterly basis the valuation of our portfolio to reflect the Board's determination of the fair value of each investment in our portfolio. Any changes in fair value are recorded in our consolidated statements of operations as net change in unrealized appreciation or depreciation on investments.

We could experience fluctuations in our quarterly operating results due to a number of factors, including the interest rate payable on the loans and debt securities we acquire, the default rate on such loans and securities, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. In light of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

New or modified laws or regulations governing our operations may adversely affect our business.

We and our portfolio companies are subject to regulation by laws at the U.S. federal, state and local levels. These laws and regulations, as well as their interpretation, may change from time to time, including as the result of interpretive guidance or other directives from the U.S. President and others in the executive branch, and new laws, regulations and interpretations may also come into effect. Any such new or changed laws or regulations could have a material adverse effect on our business.

In particular, Dodd–Frank impacts many aspects of the financial services industry, and it requires the development and adoption of many implementing regulations over the next several years. The effects

of Dodd-Frank on the financial services industry will depend, in large part, upon the extent to which regulators exercise the authority granted to them and the approaches taken in implementing regulations. President Trump has indicated that he may seek to amend or repeal portions of Dodd-Frank, among other federal laws, which may create regulatory uncertainty in the near term, and in March 2018 the U.S. Senate passed a bill that eased financial regulations and reduced oversight for certain entities. While the impact of Dodd-Frank on us and our portfolio companies may not be known for an extended period of time, Dodd-Frank, including future rules implementing its provisions and the interpretation of those rules, along with other legislative and regulatory proposals directed at the financial services industry or affecting taxation that are proposed or pending in the U.S. Congress, may negatively impact our operations, cash flows or financial condition or our portfolio companies, impose additional costs on us or our portfolio companies, intensify the regulatory supervision of us or our portfolio companies or otherwise adversely affect our business or the business of our portfolio companies. In addition, if we do not comply with applicable laws and regulations, we could lose any licenses that we then hold for the conduct of our business and may be subject to civil fines and criminal penalties.

Additionally, changes to the laws and regulations governing our operations, including those associated with RICs, may cause us to alter our investment strategy in order to avail ourselves of new or different opportunities or result in the imposition of corporate-level taxes on us. Such changes could result in material differences to our strategies and plans and may shift our investment focus from the areas of expertise of our Advisor to other types of investments in which our Advisor may have little or no expertise or experience. Any such changes, if they occur, could have a material adverse effect on our results of operations and the value of your investment. If we invest in commodity interests in the future, our Advisor may determine not to use investment strategies that trigger additional regulation by the U.S. Commodity Futures Trading Commission ("CFTC") or may determine to operate subject to CFTC regulation, if applicable. If we or our Advisor were to operate subject to CFTC regulation, we may incur additional expenses and would be subject to additional regulation.

On February 3, 2017, President Trump signed Executive Order 13772 announcing the Administration's policy to regulate the U.S. financial system in a manner consistent with certain "Core Principles," including regulation that is efficient, effective and appropriately tailored. The Executive Order directed the Secretary of the Treasury, in consultation with the heads of the member agencies of the Financial Stability Oversight Council, to report to the President on the extent to which existing laws, regulations and other government policies promote the Core Principles and to identify any laws, regulations or other government policies that inhibit federal regulation of the U.S. financial system. On June 12, 2017, the U.S. Department of the Treasury published the first of several reports in response to the Executive Order on the depository system covering banks and other savings institutions. On October 6, 2017, the Treasury released a second report outlining ways to streamline and reform the U.S. regulatory system for capital markets, followed by a third report, on October 26, 2017, examining the current regulatory framework for the asset management and insurance industries. Subsequent reports are expected to address: retail and institutional investment products and vehicles; non-bank financial institutions; financial technology; and financial innovation.

On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law. The Tax Cuts and Jobs Act makes significant changes to the U.S. income tax rules applicable to both individuals and entities, including corporations. The Tax Cuts and Jobs Act includes provisions that, among other things, reduce the U.S. corporate tax rate, introduce a capital investment deduction, limit the interest deduction, limit the use of net operating losses to offset future taxable income and make extensive changes to the U.S. international tax system. The Tax Cuts and Jobs Act is complex and far-reaching, and we cannot predict the impact its enactment will have on us, our subsidiaries, our portfolio companies and the holders of our securities.

On March 23, 2018, the SBCAA was signed into law. The SBCAA, among other things, modifies the applicable provisions of the 1940 Act to reduce the required asset coverage ratio applicable to BDCs from 200% to 150% subject to certain approval, time and disclosure requirements (including either stockholder approval or approval of a majority of the directors who are not interested persons of the BDC and who have no financial interest in the proposal). On November 28, 2018, the Board approved the reduction of the Company's asset coverage requirements in Section 61(a)(2) of the 1940 Act to 150% and recommended the stockholders to vote in favor of the proposal at the special stockholder meeting on February 1, 2019. On February 1, 2019, the Company's stockholders approved the application of the reduced asset coverage. Effective February 2, 2019, the Company is permitted to borrow amounts such that its asset coverage ratio, as defined in the 1940 Act, is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required.

On May 24, 2018, President Trump signed into law the Economic Growth, Regulatory Relief, and Consumer Protection Act, which increased from $50 billion to $250 billion the asset threshold for designation of "systemically important financial institutions" or "SIFIs" subject to enhanced prudential standards set by the Federal Reserve Board, staggering application of this change based on the size and risk of the covered bank holding company. On May 30, 2018, the Federal Reserve Board voted to consider changes to the Volcker Rule that would loosen compliance requirements for all banks.

Further, there has been increasing commentary among regulators and intergovernmental institutions, including the Financial Stability Board and International Monetary Fund, on the topic of "shadow banking" (a term generally taken to refer to credit intermediation involving entities and activities outside the regulated banking system). We are an entity outside the regulated banking system and certain of our activities may be argued to fall within this definition and, in consequence, may be subject to regulatory developments. As a result, we and our Advisor could be subject to increased levels of oversight and regulation. This could increase costs and limit operations. In an extreme eventuality, it is possible that such regulations could render our continued operation unviable and lead to its premature termination or restructuring.

Changes to U.S. tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.

There has been ongoing discussion and commentary regarding potential significant changes to U.S. trade policies, treaties and tariffs. The current administration, along with the U.S. Congress, has created significant uncertainty about the future relationship between the United States and other countries with respect to trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Any of these factors could depress economic activity and restrict our portfolio companies' access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us.

The Board may change our investment objectives, operating policies and strategies without prior notice or stockholder approval.

The Board has the authority, except as otherwise provided in the 1940 Act, to modify or waive certain of our investment objectives, operating policies and strategies without prior notice and without stockholder approval. However, absent stockholder approval, we may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC. Under Delaware law, we also cannot be dissolved without prior stockholder approval. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results and the market price of our

common stock. Nevertheless, any such changes could adversely affect our business and impair our ability to make distributions to our stockholders.

Provisions of the Delaware General Corporation Law and of our certificate of incorporation and bylaws could deter takeover attempts and have an adverse effect on the price of shares of our common stock.

The Delaware General Corporation Law, as amended (the "DGCL"), contains provisions that may discourage, delay or make more difficult a change in control of us or the removal of our directors. Our Amended and Restated Certificate of Incorporation ("Certificate of Incorporation") and bylaws ("Bylaws") contain provisions that limit liability and provide for indemnification of our directors and officers. These provisions and others which we may adopt also may have the effect of deterring hostile takeovers or delaying changes in control or management. We are subject to Section 203 of the DGCL, the application of which is subject to any applicable requirements of the 1940 Act. This section generally prohibits us from engaging in mergers and other business combinations with stockholders that beneficially own 15% or more of our voting stock, either individually or together with their affiliates, unless our directors or stockholders approve the business combination in the prescribed manner. Accordingly, Section 203 of the DGCL may discourage third parties from trying to acquire control of us and increase the difficulty of consummating such an offer.

We have also adopted measures that may make it difficult for a third party to obtain control of us, including provisions of our Certificate of Incorporation that classify the Board in three classes serving staggered three-year terms, and provisions of our Certificate of Incorporation authorizing our Board to classify or reclassify shares of our preferred stock in one or more classes or series and to cause the issuance of additional shares of our stock. These provisions, as well as other provisions we have adopted or may adopt in our Certificate of Incorporation and Bylaws, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders.

Our Certificate of Incorporation requires, to the fullest extent permitted by law, that derivative actions brought in our name, actions against our directors, officers, other employees or stockholders for breach of fiduciary duty and other similar actions may be brought in a federal or state court located in the state of Delaware.

Our Certificate of Incorporation provides that, to the fullest extent permitted by law, unless we consent in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, our Certificate of Incorporation or Bylaws or the securities, antifraud, unfair trade practices or similar laws of any international, national, state, provincial, territorial, local or other governmental or regulatory authority, including, in each case, the applicable rules and regulations promulgated thereunder, or (iv) any action asserting a claim governed by the internal affairs doctrine shall be a federal or state court located in the state of Delaware. Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock shall be deemed, to the fullest extent permitted by law, to have notice of and consented to these exclusive forum provisions and to have irrevocably submitted to, and waived any objection to, the exclusive jurisdiction of such courts in connection with any such action or proceeding and consented to process being served in any such action or proceeding, without limitation, by United States mail addressed to the stockholder at the stockholder's address as it appears on our records, with postage thereon prepaid.

This choice of forum provision may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers, other employees or stockholders, which may discourage lawsuits with respect to such claims. Alternatively, if a court were to find the choice of forum provision contained in our Certificate of Incorporation to be inapplicable or

unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, operating results and financial condition.

Our Advisor and Administrator each have the ability to resign on 60 days' notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.

Our Advisor has the right under the Investment Advisory Agreement to resign as our Advisor at any time upon not less than 60 days' written notice, whether we have found a replacement or not. Similarly, our Administrator has the right under the Administration Agreement to resign at any time upon not less than 60 days' written notice, whether we have found a replacement or not. If our Advisor or our Administrator were to resign, we may not be able to find a new investment adviser or administrator, as applicable, or hire internal management with similar expertise and ability to provide the same or equivalent services on acceptable terms within 60 days, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, our financial condition, business and results of operations as well as our ability to pay distributions to our stockholders are likely to be adversely affected and the market price of our shares may decline. In addition, the coordination of our internal management and investment or administrative activities, as applicable, is likely to suffer if we are unable to identify and reach an agreement with a single institution or group of executives having the expertise possessed by our Advisor, or our Administrator, as applicable. Even if we are able to retain a comparable service provider or individuals performing such services are retained, whether internal or external, their integration and lack of familiarity with our investment objectives may result in additional costs and time delays that may adversely affect our business, financial condition, results of operations and cash flows.

In addition, if our Advisor resigns or is terminated, we would lose the benefits of our relationship with Bain Capital Credit, including the use of Bain Capital Credit's communication and information systems, insights into our existing portfolio, market expertise, sector and macroeconomic views and due diligence capabilities, as well as any investment opportunities referred to us by Bain Capital Credit, and we would be required to change our name, which may have a material adverse impact on our operations.

We are highly dependent on information systems, and systems failures or cyber-attacks could significantly disrupt our business, which may, in turn, negatively affect the value of shares of our common stock and our ability to pay distributions.

Our business is highly dependent on the communications and information systems of Bain Capital Credit. In addition, certain of these systems are provided to Bain Capital Credit by third-party service providers. Any failure or interruption of such systems, including as a result of the termination of an agreement with any such third-party service provider, could cause delays or other problems in our activities. This, in turn, could have a material adverse effect on our business, financial condition and results of operations. In addition, these systems are subject to potential attacks, including through adverse events that threaten the confidentiality, integrity or availability of our information resources. These attacks, which may include cyber incidents, may involve a third party gaining unauthorized access to our communications or information systems for purposes of misappropriating assets, stealing confidential information, corrupting or destroying data, degrading or sabotaging our systems or causing other operational disruption. Any such attack could result in disruption to our business, misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance costs, litigation and damage to our business relationships, any of which could have a material adverse effect on our business, financial condition and results of operations.

We are subject to certain risks as a result of our interests in the membership interests in the 2018-1 Issuer.

Under the terms of the master loan sale agreement governing the CLO Transaction, we sold and/or contributed to the 2018-1 Issuer all of our ownership interest in our portfolio loans and participations for the purchase price and other consideration set forth in such master loan sale agreement (including an increase in the value of the "Membership Interests". As a result of the CLO Transaction, we hold all of the Membership Interests, which comprise 100% of the equity interests, in the 2018-1 Issuer. As a result, we expect to consolidate the financial statements of the 2018-1 Issuer, as well as our other subsidiaries, in our consolidated financial statements. However, once contributed to a CLO, the underlying loans and participation interests have been securitized and are no longer our direct investment, and the risk return profile has been altered. In general, rather than holding interests in the underlying loans and participation interests, the CLO Transaction resulted in us holding membership interests in a CLO issuer (i.e., the 2018-1 Issuer), with the CLO holding the underlying loans. As a result, we are subject both to the risks and benefits associated with the equity interests of the CLO (i.e., the Membership Interests) and the risks and benefits associated with the underlying loans and participation interests held by the 2018-1 Issuer.

The performance of the 2018-1 Issuer will be largely dependent on the analytical and managerial expertise of our investment professionals. Although we and our investment professionals and affiliates have prior experience investing in loans and other debt obligations, the 2018-1 Issuer will be the first CLO managed by us. Accordingly, we have no performance history of managing CLOs for potential investors to consider in evaluating the potential impact of the CLO Transaction on our overall performance.

We are subject to significant restrictions on our ability to advise the 2018-1 Issuer.

We will manage the assets of the 2018-1 Issuer pursuant to a portfolio management agreement with the 2018-1 Issuer (the "Portfolio Management Agreement"). The indenture governing the 2018-1 Notes (the "2018-1 Indenture") and the Portfolio Management Agreement place significant restrictions on our ability to advise the 2018-1 Issuer to buy and sell Collateral Obligations, and we are subject to compliance with the 2018-1 Indenture and the Portfolio Management Agreement. As a result of the restrictions contained in the 2018-1 Indenture and the Portfolio Management Agreement, the 2018-1 Issuer may be unable to buy or sell collateral obligations or to take other actions that we might consider in the interest of the 2018-1 Issuer and the holders of 2018-1 Notes, and we may be required to make investment decisions on behalf of the 2018-1 Issuer that are different from those made for our other clients. In addition, we may pursue any strategy consistent with the 2018-1 Indenture and the Portfolio Management Agreement, and there can be no assurance that such strategy will not change from time to time in the future. Further, for so long as we manage the assets of the 2018-1 Issuer pursuant to the Portfolio Management Agreement, we will elect to not charge any portfolio management fee to which we may be entitled under such Portfolio Management Agreement.

In our role as portfolio manager of the 2018-1 Issuer, we will be acting solely in the best interests of the 2018-1 Issuer as a whole and not solely in the best interests of the Membership Interests of the 2018-1 Issuer that we hold. As the interests of the holders of the 2018-1 Notes are senior in the 2018-1 Issuer's capital structure to our Membership Interests, we may incur losses if we are required to dispose of a portion of the portfolio of the 2018-1 Issuer at inopportune times in order to satisfy the outstanding obligations of the holders of the 2018-1 Notes.

The subordination of the Membership Interests will affect our right to payment.

The Membership Interests are subordinated to the 2018-1 Notes and certain fees and expenses. If any Coverage Test (defined below) is not satisfied as of a determination date, cash flows (if any) and

proceeds otherwise payable to the 2018-1 Issuer (which the 2018-1 Issuer could have otherwise distributed with respect to the Membership Interests) will be diverted to the payment of principal on the 2018-1 Notes. If the 2018-1 Issuer has not received confirmation from S&P Global Ratings of its initial ratings of each class of the 2018-1 Notes, or if we fail to hold the required amount of Membership Interests as required by European Union risk retention regulations ("Retention Deficiency"), proceeds will be diverted to pay principal on the 2018-1 Notes or to purchase additional collateral obligations (or, in the case of a Retention Deficiency, to the extent necessary to reduce such Retention Deficiency to zero). If during the period from and including the closing date of the CLO Transaction to and including the earliest of (i) October 20, 2022 and (ii) the date of the acceleration of the maturity of the 2018-1 Notes in accordance with the 2018-1 Indenture the applicable Overcollateralization Ratio Test (defined below) is not satisfied, proceeds will be diverted to purchase additional collateral obligations.

Although these tests generally compare the principal balance of the collateral obligations to the aggregate outstanding principal amount of the 2018-1 Notes, certain reductions are applied to the principal balance of Collateral Obligations in connection with certain events, such as defaults or ratings downgrades to "CCC" levels or below, in each case that may increase the likelihood that one or more Overcollateralization Ratio Tests may not be satisfied.

On the scheduled maturity of the 2018-1 Notes or if acceleration of the 2018-1 Notes occurs after an event of default, proceeds available after the payment of certain administrative expenses) will be applied to pay both principal of and interest on the 2018-1 Notes until the 2018-1 Notes are paid in full before any further payment will be made on the Membership Interests. As a result, the Membership Interests would not receive any payments until the 2018-1 Notes are paid in full.

In addition, if an event of default occurs and is continuing, the holders of the 2018-1 Notes will be entitled to determine the remedies to be exercised under the 2018-1 Indenture. Remedies pursued by the holders of the 2018-1 Notes could be adverse to our interests as the holder of the Membership Interests, and the holders of the 2018-1 Notes will have no obligation to consider any possible adverse effect on such other interests. See "—The holders of certain of the 2018-1 Notes will control many rights under the 2018-1 Indenture and therefore, we will have limited rights in connection with an event of default or distributions thereunder."

The holders of certain of the 2018-1 Notes will control many rights under the 2018-1 Indenture and therefore, we will have limited rights in connection with an event of default or distributions thereunder.

Under the 2018-1 Indenture, many of our rights as the holder of the Membership Interests will be controlled by the holders of certain of the 2018-1 Notes. Remedies pursued by such holders upon an event of default could be adverse to our interests. If the 2018-1 Notes are accelerated following an event of default, proceeds of any realization on the assets will be allocated to the 2018-1 Notes (in order of seniority) and certain other amounts owing by the 2018-1 Issuer will be paid in full before any allocation to us as the holder of the Membership Interests. Although we as the holder of the Membership Interests will have the right, subject to the conditions set forth in the 2018-1 Indenture, to purchase the assets in a sale by the trustee, if an event of default (or otherwise, an acceleration of the 2018-1 Notes following an event of default) has occurred and is continuing, we will not have any creditors' rights against the 2018-1 Issuer and will not have the right to determine the remedies to be exercised under the 2018-1 Indenture. There is no guarantee that any funds will remain to make distributions to us as the holder of the Membership Interests following any liquidation of the assets and the application of the proceeds from the assets to pay the 2018-1 Notes and the fees, expenses, and other liabilities payable by the 2018-1 Issuer. The ability of the holders of the 2018-1 Notes to direct the sale and liquidation of the assets is subject to certain limitations. As set forth in the 2018-1 Indenture, notwithstanding any acceleration, if an event of default occurs and is continuing and the trustee has not commenced remedies under the 2018-1 Indenture, we as

the portfolio manager of the 2018-1 Issuer may continue to direct dispositions and purchases of collateral obligations to the extent permitted under the 2018-1 Indenture.

If an event of default has occurred and is continuing (unless the trustee has commenced remedies pursuant to the 2018-1 Indenture), then (x) we as the portfolio manager of the 2018-1 Issuer may continue to direct sales and other dispositions, and purchases, of collateral obligations in accordance with and to the extent permitted pursuant to the 2018-1 Indenture and (y) the trustee will retain the assets securing the 2018-1 Notes intact, collect and cause the collection of the proceeds thereof and make and apply all payments and deposits and maintain all accounts in respect of the assets and the 2018-1 Notes in accordance with the 2018-1 Indenture, unless: (i) the trustee, pursuant to the 2018-1 Indenture and in consultation with us as the portfolio manager of the 2018-1 Issuer, determines that the anticipated proceeds of a sale or liquidation of the assets (after deducting the anticipated reasonable expenses of such sale or liquidation) would be sufficient to discharge in full the amounts then due (or, in the case of interest, accrued) and unpaid on the 2018-1 Notes for principal and interest (including accrued and unpaid deferred interest), and all other amounts payable pursuant to the priority of distributions prior to payment of principal on such 2018-1 Notes (including amounts due and owing, and amounts anticipated to be due and owing, as administrative expenses (without regard to any applicable limitation on such expenses)), and we as the portfolio manager of the 2018-1 Issuer and the holders of at least 66²/3% (a "Supermajority") of the most senior outstanding class of the 2018-1 Notes agrees with such determination; (ii) in the case of certain events of default, a Supermajority of the most senior outstanding class of the 2018-1 Notes directs the sale and liquidation of the assets; or (iii) a Supermajority of each class of the 2018-1 Notes (voting separately by class) directs the sale and liquidation of the assets.

The 2018-1 Indenture requires mandatory redemption of the 2018-1 Notes for failure to satisfy Coverage Tests.

Under the documents governing the CLO Transaction, there are two coverage tests (the "Coverage Tests") applicable to the 2018-1 Notes.

The first such test (the "Interest Coverage Test") compares the amount of interest proceeds received on the portfolio loans held by the 2018-1 Issuer to the amount of interest due and payable on the 2018-1 Notes. To meet this first test, for each class of 2018-1 Notes, interest received on the portfolio loans must equal at least 120%, 115% or 110% of the interest payable in respect of the Class A, Class B and Class C 2018-1 Notes, respectively.

The second such test (the "Overcollateralization Ratio Test") compares the adjusted collateral principal amount of the portfolio of Collateral Obligations of the CLO Transaction to the aggregate outstanding principal amount of the 2018-1 Notes. To meet this second test at any time, for each class of 2018-1 Notes, the adjusted collateral principal amount of such Collateral Obligations must equal at least 137.1%, 126.2% or 117.1% of the outstanding principal amount of the 2018-1 Notes comprising the Class A, B and C Classes, respectively.

If a Coverage Test is not met on any determination date on which such Coverage Test is applicable, the 2018-1 Issuer shall apply available amounts to redeem the 2018-1 Notes in an amount necessary to cause such tests to be satisfied. This could result in an elimination, deferral or reduction in the payments of distributions to the 2018-1 Issuer (and as such, to us as the holder of the Membership Interests and indirect beneficiary of any such payments to the 2018-1 Issuer).

We may resign or be removed or terminated as portfolio manager of the 2018-1 Issuer.

We may resign or be removed or terminated as portfolio manager of the 2018-1 Issuer in a number of circumstances, including the breach of certain terms of the 2018-1 Indenture and the Portfolio Management Agreement. In addition, because a new portfolio manager may not be able to manage the

2018-1 Issuer according to the standards of the 2018-1 Indenture and the Portfolio Management Agreement, any transfer of the portfolio management functions to another entity could result in reduced or delayed collections, delays in processing loan transfers and information regarding the loans and a failure to meet all of the applicable procedures required by the Portfolio Management Agreement. Consequently, the termination or removal of us as portfolio manager of the 2018-1 Issuer could have material and adverse effects on our performance.

We and our Advisor are subject to regulations and SEC oversight. If we or they fail to comply with applicable requirements, it may adversely impact our results relative to companies that are not subject to such regulations.

As a BDC, we are subject to a portion of the 1940 Act. In addition, we have elected to be treated, and intend to operate in a manner so as to continuously qualify, as a RIC in accordance with the requirements of Subchapter M of the Code. The 1940 Act and the Code impose various restrictions on the management of a BDC, including related to portfolio construction, asset selection, and tax. These restrictions may reduce the chances that the BDC will achieve the same results as other vehicles managed by Bain Capital Credit and/or our Advisor.

However, if we do not maintain our status as a BDC, we would be subject to regulation as a registered closed-end investment company under the 1940 Act. As a registered closed-end investment company, we would be subject to substantially more regulatory restrictions under the 1940 Act which would significantly decrease our operating flexibility.

In addition to these and other requirements applicable to us, our Advisor is subject to regulatory oversight by the SEC. To the extent the SEC raises concerns or has negative findings concerning the manner in which we or our Advisor operate, it could adversely affect our business.

We are prohibited under the 1940 Act from participating in certain transactions with our affiliates without the prior approval of our Independent Directors and, in some cases, the SEC. We consider our Advisor and its affiliates, including Bain Capital Credit, to be our affiliates for such purposes. In addition, any person that owns, directly or indirectly, 5% or more of our outstanding voting securities will be our affiliate for purposes of the 1940 Act, and we are generally prohibited from buying or selling any security from or to such affiliate without the prior approval of our Independent Directors. The 1940 Act also prohibits certain "joint" transactions with certain of our affiliates, which could include investments in the same portfolio company, without prior approval of our Independent Directors and, in some cases, of the SEC. We are prohibited from buying or selling any security from or to any person who owns more than 25% of our voting securities or certain of that person's affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC.

We may, however, invest alongside Bain Capital Credit Clients in certain circumstances where doing so is consistent with our investment strategy as well as applicable law and SEC staff interpretations or exemptive orders. For example, we may invest alongside Bain Capital Credit Clients consistent with guidance promulgated by the SEC staff to purchase interests in a single class of privately placed securities so long as certain conditions are met, including that Bain Capital Credit and our Advisor, acting on our behalf and on behalf of such Bain Capital Credit Clients, negotiates no term other than price. We may also invest alongside Bain Capital Credit Clients as otherwise permissible under regulatory guidance, applicable regulations or exemptive orders and Bain Capital Credit's allocation policy. If we are prohibited by applicable law from investing alongside Bain Capital Credit Clients with respect to an investment opportunity, we may not be able to participate in such investment opportunity. If our Advisor recommends

a particular level of investment to us, and the aggregate amount recommended to us by our Advisor and to other participating Bain Capital Credit Clients exceeds the amount of the investment opportunity, subject to applicable law, investments made pursuant to exemptive relief will generally be allocated among the participants pro rata based on capital available for investment in the asset class being allocated and the respective governing documents of the Bain Capital Credit Clients. We expect that available capital for our investments will be determined based on the amount of cash on-hand, existing commitments and reserves, if any, the targeted leverage level, targeted asset mix and diversification requirements and other investment policies and restrictions set by the Board or as imposed by applicable laws, rules, regulations or interpretations. In instances when investments are not made pursuant to exemptive relief, allocations among us and other Bain Capital Credit Clients, subject to applicable law and regulation, will be done in accordance with our Advisor's trade allocation practice, which is generally pro rata based on order size. However, there can be no assurance that we will be able to participate in all investment opportunities that are suitable to us.

In situations where co-investment with other Bain Capital Credit Clients is not permitted or appropriate, subject to the limitations described in the preceding paragraph, Bain Capital Credit will need to decide which client will proceed with the investment. Similar restrictions limit our ability to transact business with our officers or directors or their affiliates. These restrictions will limit the scope of investment opportunities that would otherwise be available to us.

We, our Advisor and Bain Capital Credit have been granted exemptive relief from the SEC to permit greater flexibility to negotiate the terms of co-investments if the Board determines that it would be advantageous for us to co-invest with other Bain Capital Credit Clients in a manner consistent with our investment objectives, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent other Bain Capital Credit Clients funds, accounts and investment vehicles managed by Bain Capital Credit may afford us additional investment opportunities and an ability to achieve greater diversification. Accordingly, our exemptive order permits us to invest with Bain Capital Credit Clients in the same portfolio companies under circumstances in which such investments would otherwise not be permitted by the 1940 Act. Our exemptive relief permitting co-investment transactions generally applies only if our Independent Directors and Directors who have no financial interest in such transaction review and approve in advance each co-investment transaction. The exemptive relief imposes other conditions with which we must comply to engage in co-investment transactions.

Our ability to sell or otherwise exit investments also invested in by other Bain Capital Credit investment vehicles is restricted.

We may be considered affiliates with respect to certain of our portfolio companies because our affiliates, which may include other Bain Capital Credit Funds, also hold interests in these portfolio companies and as such these interests may be considered a joint enterprise under the 1940 Act. To the extent that our interests in these portfolio companies may need to be restructured in the future or to the extent that we choose to exit certain of these transactions, our ability to do so will be limited.

If we do not invest a sufficient portion of our assets in qualifying assets, we could fail to qualify as a BDC or be precluded from investing according to our current business strategy.

As a BDC, we may not acquire any assets other than qualifying assets unless, at the time of and after giving effect to such acquisition, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Subject to certain exceptions for follow-on investments and investments in distressed companies, an investment in an issuer that has outstanding securities listed on a national securities exchange may be treated as qualifying assets only if such issuer has a common equity market capitalization that is less than $250.0 million at the time of such investment.

We may be precluded from investing in what we believe are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If we do not invest a sufficient portion of our assets in qualifying assets, we could violate the 1940 Act provisions applicable to BDCs. As a result of such violation, specific rules under the 1940 Act could prevent us, for example, from making follow-on investments in existing portfolio companies (which could result in the dilution of our position) or could require us to dispose of investments at inappropriate times in order to come into compliance with the 1940 Act. If we need to dispose of such investments quickly, it could be difficult to dispose of such investments on favorable terms. We may not be able to find a buyer for such investments and, even if we do find a buyer, we may have to sell the investments at a substantial loss. Any such outcomes could have a material adverse effect on our business, financial condition, results of operations and cash flows. See "Item 1. Business— Regulation as a Business Development Company —Qualifying Assets."

Regulations governing our operation as a BDC affect our ability to, and the way in which we, raise additional capital.

We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as "senior securities," up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, we will be permitted as a BDC to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 200% (or 150% if certain disclosure and approval requirements are met) of our gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments at a time when such sales may be disadvantageous to us in order to repay a portion of our indebtedness.

Furthermore, equity capital may be difficult to raise because, subject to some limited exceptions we are not generally able to issue and sell our common stock at a price per share below NAV. We may, however, sell our common stock, or warrants, options, or rights to acquire shares of our common stock, at a price below the current NAV of shares of our common stock if the Board determines that such sale is in our best interests and the best interests of our stockholders, and our stockholders, including a majority of those stockholders that are not affiliated with us, approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of the Board, closely approximates the market value of such securities (less any distributing commission or discount). We do not currently have authorization from our stockholders to issue common stock at a price below its then current NAV per share.

Certain investors are limited in their ability to make significant investments in us.

Private funds that are excluded from the definition of "investment company" either pursuant to Section 3(c)(1) or 3(c)(7) of the 1940 Act are restricted from acquiring directly or through a controlled entity more than 3% of our total outstanding voting stock (measured at the time of the acquisition). Investment companies registered under the 1940 Act and BDCs, such as us, are also subject to this restriction as well as other limitations under the 1940 Act that would restrict the amount that they are able to invest in our securities. As a result, certain investors will be limited in their ability to make significant investments in us at a time that they might desire to do so.

Economic recessions or downturns could impair our portfolio companies, and defaults by our portfolio companies will harm our operating results.

Many of the portfolio companies in which we have invested or expect to make investments are likely to be susceptible to economic slowdowns or recessions and may be unable to repay our loans during such periods. Therefore, the number of our non-performing assets is likely to increase and the value of our portfolio is likely to decrease during such periods. Adverse economic conditions may also decrease the value of collateral securing some of our loans and debt securities and the value of our equity investments. If the value of collateral underlying our loan declines during the term of our loan, a portfolio company may not be able to obtain the necessary funds to repay our loan at maturity through refinancing. Decreasing collateral value may hinder a portfolio company's ability to refinance our loan because the underlying collateral cannot satisfy the debt service coverage requirements necessary to obtain new financing. Thus, economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. We consider a number of factors in making our investment decisions, including, but not limited to, the financial condition and prospects of a portfolio company and its ability to repay our loan. Unfavorable economic conditions could negatively affect the valuations of our portfolio companies and, as a result, make it more difficult for such portfolio companies to repay or refinance our loan. Therefore, these events could prevent us from increasing our investments and harm our operating results.

A portfolio company's failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, acceleration of the time when the loans are due, termination of its loans and foreclosure on its assets, which could trigger cross-defaults under other agreements and jeopardize such portfolio company's ability to meet its obligations under the loans and debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company, which may include the waiver of certain financial covenants. Furthermore, if one of our portfolio companies were to file for bankruptcy protection, depending on the facts and circumstances, including the extent to which we actually provide significant managerial assistance to that portfolio company, a bankruptcy court might re-characterize our debt holding and subordinate all or a portion of our claim to claims of other creditors, even though we may have structured our investment as senior secured debt.

Our portfolio companies may be unable to repay or refinance outstanding principal on their loans at or prior to maturity, and rising interests rates may make it more difficult for portfolio companies to make periodic payments on their loans.

Our portfolio companies may be unable to repay or refinance outstanding principal on their loans at or prior to maturity. This risk and the risk of default is increased to the extent that the loan documents do not require the portfolio companies to pay down the outstanding principal of such debt prior to maturity. In addition, if general interest rates rise, there is a risk that our portfolio companies will be unable to pay escalating interest amounts, which could result in a default under their loan documents with us. Any failure of one or more portfolio companies to repay or refinance its debt at or prior to maturity or the inability of one or more portfolio companies to make ongoing payments following an increase in contractual interest rates could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our debt investments may be risky, and we could lose all or part of our investments.

Debt portfolios are subject to credit and interest rate risk. "Credit risk" refers to the likelihood that an issuer will default in the payment of principal and/or interest on an instrument. Financial strength and solvency of an issuer are the primary factors influencing credit risk. In addition, subordination, lack or inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. Credit risk may change over the life of an instrument, and securities which are rated by rating agencies are often reviewed and may be subject to downgrade. "Interest rate risk" refers to the risks associated with market changes in interest rates. Factors that may affect market interest rates include, without limitation, inflation, slow or stagnant economic growth or recession, unemployment, money supply and the monetary policies of the Federal Reserve Board and central banks throughout the world, international disorders and instability in domestic and foreign financial markets. The Federal Reserve Board raised the federal funds rate in December 2015, in December 2016, in March 2017, in June 2017, in December 2017, March 2018, June 2018 and again in October 2018, and has announced its intention to continue to raise the federal funds rate over time. These developments, along with domestic and international debt and credit concerns, could cause interest rates to be volatile, which may negatively impact our ability to access the debt markets on favorable terms. Interest rate changes may also affect the value of a debt instrument indirectly (especially in the case of fixed rate securities) and directly (especially in the case of instruments whose rates are adjustable). In general, rising interest rates will negatively impact the price of a fixed rate debt instrument and falling interest rates will have a positive effect on price. Adjustable rate instruments may also react to interest rate changes in a similar manner although generally to a lesser degree (depending, however, on the characteristics of the reset terms, including, among other factors, the index chosen, frequency of reset and reset caps or floors). Interest rate sensitivity is generally more pronounced and less predictable in instruments with uncertain payment or prepayment schedules. We expect that we will periodically experience imbalances in the interest rate sensitivities of our assets and liabilities and the relationships of various interest rates to each other. In a changing interest rate environment, we may not be able to manage this risk effectively, which in turn could adversely affect our performance.

Portfolio companies may face intense competition, including competition from companies with greater financial resources, more extensive development, manufacturing, marketing and other capabilities, or a larger number of qualified managerial and technical personnel. As a result, portfolio companies which our Advisor expects to be stable may operate at a loss or have significant variations in operating results, may require substantial additional capital to support their operations or to maintain their competitive position or may otherwise have a weak financial condition or be experiencing financial distress.

Portfolio companies may issue certain types of debt, such as senior loans, mezzanine or high yield in connection with leveraged acquisitions or recapitalizations in which the portfolio company incurs a substantially higher amount of indebtedness than the level at which it had previously operated. Leverage may have important consequences to these portfolio companies and us as an investor. For example, the substantial indebtedness of a portfolio company could (i) limit its ability to borrow money for its working capital, capital expenditures, debt service requirements, strategic initiatives or other purposes, (ii) require it to dedicate a substantial portion of its cash flow from operations to the repayment of its indebtedness, thereby reducing funds available to it for other purposes, (iii) make it more highly leveraged than some of its competitors, which may place it at a competitive disadvantage, and (iv) subject it to restrictive financial and operating covenants, which may preclude it from favorable business activities or the financing of future operations or other capital needs. As a result, the ability of these leveraged companies to respond to changing business and economic conditions and to take advantage of business opportunities may be limited.

A leveraged portfolio company's income and net assets will tend to increase or decrease at a greater rate than if borrowed money were not used. In addition, a portfolio company with a leveraged capital structure will be subject to increased exposure to adverse economic factors, such as a significant rise in interest rates, a severe downturn in the economy or deterioration in the condition of that portfolio company or its industry. Leveraged companies in which we invest may have limited financial resources and may be unable to meet their obligations under their loans and debt securities that we hold. Such developments may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of our realizing any guarantees that we may have obtained in connection with our investment. If a portfolio company is unable to generate sufficient cash flow to meet all of its obligations, it may take alternative measures (e.g., reduce or delay capital expenditures, sell assets, seek additional capital, or seek to restructure, extend or refinance indebtedness). These actions may negatively affect our investment in such a portfolio company. Accordingly, leveraged companies may enter into bankruptcy proceedings at higher rates than companies that are not leveraged.

We expect to invest in middle market companies, which involve higher risks than investments in larger companies.

We invest, and expect to invest in middle market companies, which companies often involve higher risks because they lack the management experience, financial resources, product diversification and competitive strength of larger corporations, all of which may contribute to illiquidity, and may, in turn, adversely affect the price and timing of liquidation of our investments.

Middle market companies are more likely to depend on the management talents and efforts of a small group of persons. Therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on one or more of the portfolio companies we invest in and, in turn, on us. Middle market companies also may be parties to litigation and may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence. In addition, our executive officers, directors and our Advisor may, in the ordinary course of business, be named as defendants in litigation arising from our investments in portfolio companies.

In addition, investment in middle market companies involves a number of other significant risks, including:

The lack of liquidity in our investments may adversely affect our business.

The lack of an established, liquid secondary market for a large portion of our investments may have an adverse effect on the market value of our investments and on our ability to dispose of them. Additionally, our investments may be subject to certain transfer restrictions that may also contribute to

illiquidity. Further, our assets that are typically traded in a liquid market may become illiquid if the applicable trading market tightens. Therefore, no assurance can be given that we can dispose of a particular investment at its prevailing fair value.

A portion of our investments may consist of securities that are subject to restrictions on resale by us because they were acquired in a "private placement" or similar transaction or because we are deemed to be an affiliate of the issuer of such securities. We will be able to sell such securities only under applicable securities laws, which may permit only limited sales under specified conditions or subject us to additional potential liability.

Price declines and illiquidity in the corporate debt markets may adversely affect the fair value of our portfolio investments, reducing our NAV through increased net unrealized depreciation.

As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at fair value as determined in good faith by the Board as described above in "—The majority of our portfolio investments are recorded at fair value as determined in good faith by the Board and, as a result, there may be uncertainty as to the value of our portfolio investments."

When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we use the pricing indicated by the external event to corroborate our valuation. While most of our investments are not publicly traded, applicable accounting standards require us to assume as part of our valuation process that our investments are sold in a principal market to market participants (even if we plan on holding an investment through its maturity). As a result, volatility in the capital markets can also adversely affect our investment valuations. We record decreases in the market values or fair values of our investments as unrealized depreciation. Declines in prices and liquidity in the corporate debt markets may result in significant net unrealized depreciation in our portfolio. The effect of all of these factors on our portfolio may reduce our NAV by increasing net unrealized depreciation in our portfolio. Depending on market conditions, we could incur substantial realized losses and may suffer additional unrealized losses in future periods, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our investments in secured loans may nonetheless expose us to losses from default and foreclosure.

While we may invest in secured loans, we may nonetheless be exposed to losses resulting from default and foreclosure. Therefore, the value of the underlying collateral, the creditworthiness of the borrower and the priority of the lien are each of great importance. In some circumstances, our lien could be subordinated to claims of other creditors, such as trade creditors. In addition, deterioration in a portfolio company's financial condition and prospects, including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the debt investment. We cannot guarantee the adequacy of the protection of our interests, including the validity or enforceability of the loan and the maintenance of the anticipated priority and perfection of the applicable security interests. There is a risk that the collateral securing our debt investment may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the portfolio company to raise additional capital. Furthermore, we cannot assure that claims may not be asserted that might interfere with enforcement of our rights. In addition, in the event of any default under a secured loan held directly by us, we will bear a risk of loss of principal to the extent of any deficiency between the value of the collateral and the principal and accrued interest of the secured loan, which could have a material adverse effect on our cash flow from operations.

In the event of a foreclosure, we may assume direct ownership of the underlying asset. The liquidation proceeds upon sale of such asset may not satisfy the entire outstanding balance of principal and

interest on the loan, resulting in a loss to us. Any costs or delays involved in the effectuation of a foreclosure of the loan or a liquidation of the underlying property will further reduce the proceeds and thus increase the loss.

These risks are magnified for stretch senior loans. Stretch senior loans are senior loans that have a greater loan-to-value ratio than traditional senior loans and typically carry a higher interest rate to compensate for the additional risk. Because stretch senior loans have a greater loan-to-value ratio, there is potentially less over-collateralization available to cover the entire principal of the stretch senior loan.

Our investments in mezzanine debt and other junior securities are subordinate to senior indebtedness of the applicable company and are subject to greater risk.

The mezzanine debt and other junior securities in which we may invest are typically contractually or structurally subordinate to senior indebtedness of the applicable company, or effectively subordinated as a result of being unsecured debt and therefore subject to the prior repayment of secured indebtedness to the extent of the value of the assets pledged as security. In some cases, the subordinated debt held by us may be subject to the prior repayment of different classes of senior debt that may be in priority ahead of the debt held by us. In the event of financial difficulty on the part of a portfolio company, such class or classes of senior indebtedness ranking prior to the debt held by us, and interest thereon and related expenses, must first be repaid in full before any recovery may be had on our mezzanine or other subordinated investments. Subordinated investments are characterized by greater credit risks than those associated with the senior or senior secured obligations of the same issuer. In addition, under certain circumstances the holders of the senior indebtedness will have the right to block the payment of interest and principal on our mezzanine debt and other junior securities and to prevent us from pursuing its remedies on account of such non-payment against the issuer. Further, in the event of any debt restructuring or workout of the indebtedness of any issuer, the holders of the senior indebtedness will likely control the creditor side of such negotiations.

Many issuers of mezzanine debt and other junior securities are highly leveraged, and their relatively high debt-to-equity ratios create increased risks that their operations might not generate sufficient cash flow to service their debt obligations. In addition, many issuers of mezzanine debt and other junior securities may be in poor financial condition, experiencing poor operating results, having substantial capital needs or negative net worth or be facing special competitive or product obsolescence problems, and may include companies involved in bankruptcy or other reorganizations or liquidation proceedings. Adverse changes in the financial condition of an issuer, general economic conditions, or both, may impair the ability of such issuer to make payments on the subordinated securities and result in defaults on such securities more quickly than in the case of the senior obligations of such issuer. Mezzanine debt and other junior securities may not be publicly traded, and therefore it may be difficult to obtain information as to the true condition of the issuer. Finally, the market values of certain of mezzanine debt and other junior securities may reflect individual corporate developments.

Investments in mezzanine debt and other junior securities may also be in the form of zero-coupon or deferred interest bonds, which are bonds which are issued at a significant discount from face value. The original discount approximates the total amount of interest the bonds will accrue and compound over the period until maturity or the first interest accrual date at a rate of interest reflecting the market rate of the security at the time of issuance. While zero-coupon bonds do not require the periodic payment of interest, deferred interest bonds generally provide for a period of delay before the regular payment of interest begins. These investments typically experience greater volatility in market value due to changes in the interest rates than bonds that provide for regular payments of interest. We may make subordinated investments that rank below other obligations of the obligor in right of payment. Subordinated investments are subject to greater risk of default than senior obligations as a result of adverse changes in the financial condition of the obligor or in general economic conditions. If we make a subordinated investment in a

portfolio company, the portfolio company may be highly leveraged, and its relatively high debt-to-equity ratio may create increased risks that its operations might not generate sufficient cash flow to service all of its debt obligations.

Our prospective portfolio companies may prepay loans, which may reduce our yields if capital returned cannot be invested in transactions with equal or greater expected yields.

The terms of loans acquired or originated by us may be subject to early prepayment options or similar provisions which, in each case, could result in us realizing repayments of such loans earlier than expected, sometimes with no or a nominal prepayment premium. This may happen when there is a decline in interest rates, when the portfolio company's improved credit or operating or financial performance allows the refinancing of certain classes of debt with lower cost debt or when the general credit market conditions improve. Prepayments could also negatively impact our ability to pay, or the amount of, distributions on our common stock, which could result in a decline in the market price of our shares. Further, in the case of some of these loans, having the loan paid early may have the effect of reducing our actual investment income below our expected investment income if the capital returned cannot be invested in transactions with equal or greater yields. Our inability to reinvest such proceeds may materially affect our overall performance.

We are generally unable to predict the rate and frequency of such prepayments. Whether a loan is prepaid will depend both on the continued positive performance of the portfolio company and the existence of favorable financing market conditions that allow such portfolio company the ability to replace existing financing with less expensive capital. In periods of rising interest rates, the risk of prepayment of floating rate loans may increase if other financing sources are available. As market conditions change frequently, we will often be unable to predict when, and if, this may be possible for each of our portfolio companies.

We may invest in debt that has limited mandatory amortization and interim repayment requirements. A low level of amortization of any debt, over the life of the investment, may increase the risk that a portfolio company will not be able to repay or refinance the debt held by us when it comes due at its final stated maturity.

We may invest in high yield debt, or junk bonds, which has greater credit and liquidity risk than more highly rated debt obligations.

We may invest in high yield debt, a substantial portion of which may be rated below investment-grade by one or more nationally recognized statistical rating organizations or is unrated but of comparable credit quality to obligations rated below investment-grade, and has greater credit and liquidity risk than more highly rated debt obligations. High yield debt is generally unsecured and may be subordinate to other obligations of the obligor. The lower rating of high yield debt reflects a greater possibility that adverse changes in the financial condition of the obligor or in general economic conditions (including, for example, a substantial period of rising interest rates or declining earnings) or both may impair the ability of the obligor to make payment of principal and interest. Many issuers of high yield debt are highly leveraged, and their relatively high debt-to-equity ratios create increased risks that their operations might not generate sufficient cash flow to service their debt obligations. In addition, many issuers of high yield debt may be in poor financial condition, experiencing poor operating results, having substantial capital needs or negative net worth or be facing special competitive or product obsolescence problems, and may include companies involved in bankruptcy or other reorganizations or liquidation proceedings. High yield debt generally experiences greater default rates than is the case for investment-grade securities. Certain of these securities may not be publicly traded, and therefore it may be difficult to obtain information as to the true

condition of the issuer. Overall declines in the below investment-grade bond and other markets may adversely affect such issuers by inhibiting their ability to refinance their debt at maturity. High yield debt is often less liquid than higher rated securities, and the market for high yield debt has recently experienced periods of volatility. The market values of certain of this high yield debt may reflect individual corporate developments.

For a description of zero-coupon or deferred interest bonds, see "—Our investments in mezzanine debt and other junior securities are subordinate to senior indebtedness of the applicable company and are subject to greater risk."

We may invest in equity securities, which generally have greater price volatility than fixed income securities.

We may in certain limited circumstances invest in equity securities, including equity securities issued by entities with unrated or below investment-grade debt. As with other investments that we may make, the value of equity securities held by us may be adversely affected by actual or perceived negative events relating to the issuer of such securities, the industry or geographic areas in which such issuer operates or the financial markets generally. However, equity securities may be even more susceptible to such events given their subordinate position in the issuer's capital structure. As such, equity securities generally have greater price volatility than fixed income securities, and the market price of equity securities owned by us is more susceptible to moving up or down in a rapid or unpredictable manner. The equity securities we acquire may fail to appreciate and may decline in value or become worthless, and our ability to recover our investment will depend on our portfolio company's success. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience.

Even if the portfolio company is successful, our ability to realize the value of our investment may be dependent on the occurrence of a liquidity event, such as a public offering or the sale of the portfolio company. It is likely to take a significant amount of time before a liquidity event occurs or we can otherwise sell our investment. In addition, the equity securities we receive or invest in may be subject to restrictions on resale during periods in which it could be advantageous to sell them.

There are special risks associated with investing in preferred securities, including:

The prices of the financial instruments in which we invest may be highly volatile.

Price movements of instruments in which our assets may be invested are influenced by, among other things, interest rates, changing supply and demand relationships, trade, fiscal, monetary and exchange control programs and policies of governments and national and international political and

economic events and policies. In addition, governments, from time to time, intervene, directly and by regulation, in certain markets, particularly those in currencies and financial instrument options. Such intervention is intended to influence prices directly and may, together with other factors, cause all of such markets to move rapidly in the same direction because of, among other things, interest rate fluctuations.

Our investment in entire portfolios may not be as successful as acquiring the assets individually.

We may invest in entire portfolios of assets sold by hedge funds, other BDCs, regional commercial banks, specialty finance companies and other types of financial firms. The performance of individual assets in such a portfolio will vary, and the return on our investment in an entire portfolio may not exceed the returns we would have received had we purchased some, but not all, of the assets contained in such portfolio.

Investments in financially troubled companies involve significantly greater risk than investments in non-troubled companies.

We may invest in the obligations of companies that are financially troubled and that are either engaged in a reorganization or expect to file for bankruptcy. Although the terms of such financing may result in significant returns to us, investments in financially troubled companies involve significantly greater risk than investments in non-troubled companies, and the repayment of obligations of financially troubled companies is subject to significant uncertainties. The level of analytical sophistication, both financial and legal, necessary for successful financing to companies experiencing significant business and financial difficulties is unusually high. There is no assurance that we will correctly evaluate the value of the assets collateralizing our loans or the prospects for a successful reorganization or similar action. We may make investments that become distressed due to factors outside the control of our Advisor. There is also no assurance that there will be sufficient collateral to cover the value of the loans and/or other investments purchased by us or that there will be a successful reorganization or similar action of the company or investment which becomes distressed. In any reorganization or liquidation proceeding relating to a company in which we invest, we may lose all or part of our investment, may be required to accept collateral, cash or securities with a value less than our original investment and/or may be required to accept payment over an extended period of time. Additionally, we may invest in the securities of financially troubled companies that are non-U.S. issuers. Such non-U.S. issuers may be subject to bankruptcy and reorganization processes and proceedings that are not comparable to those in the United States and that may be less favorable to the rights of lenders.

Investments in "event-driven" special situations may not fully insulate us from risks inherent in our planned activities.

Our strategies, from time to time, involve investments in "event-driven" special situations such as recapitalizations, spinoffs, corporate and financial restructurings, litigation or other catalyst-orientated situations. Investments in such securities are often difficult to analyze, and we could be incorrect in our assessment of the downside risk associated with an investment, thus resulting in a significant loss. Although we intend to utilize appropriate risk management strategies, such strategies cannot fully insulate us from the risks inherent in our planned activities. Moreover, in certain situations, we may be unable to, or may choose not to, implement risk management strategies because of the costs involved or other relevant circumstances.

In recent years, a number of judicial decisions in the United States have upheld the right of borrowers to sue lending institutions on the basis of various evolving legal theories (collectively termed "lender liability"). Generally, lender liability is founded upon the premise that an institutional lender has violated a duty (whether implied or contractual) of good faith and fair dealing owed to the borrower or has assumed a degree of control over the borrower resulting in creation of a fiduciary duty owed to the borrower or its other creditors or stockholders. Because of the nature of certain of our investments, we could be subject to allegations of lender liability.

In addition, under common law principles that in some cases form the basis for lender liability claims, if a lending institution (i) intentionally takes an action that results in the undercapitalization of a borrower to the detriment of other creditors of such borrower, (ii) engages in other inequitable conduct to the detriment of such other creditors, (iii) engages in fraud with respect to, or makes misrepresentations to, such other creditors or (iv) uses its influence as a stockholder to dominate or control a borrower to the detriment of the other creditors of such borrower, a court may elect to subordinate the claim of the offending lending institution to the claims of the disadvantaged creditor or creditors, a remedy called "equitable subordination." Because of the nature of certain of our investments, we could be subject to claims from creditors of an obligor that our investments issued by such obligor should be equitably subordinated. A significant number of our investments will involve investments in which we will not be the lead creditor. It is, accordingly, possible that lender liability or equitable subordination claims affecting our investments could arise without our direct involvement.

If we purchase debt securities of an affiliate of a portfolio company in the secondary market at a discount, (i) a court might require us to disgorge profit it realizes if the opportunity to purchase such securities at a discount should have been made available to the issuer of such securities or (ii) we might be prevented from enforcing such securities at their full face value if the issuer of such securities becomes bankrupt.

Participation on creditors' committees may expose our Advisor to liability.

Our Advisor may participate on committees formed by creditors to negotiate the management of financially troubled companies that may or may not be in bankruptcy or our Advisor may seek to negotiate directly with the debtors with respect to restructuring issues. If our Advisor does join a creditors' committee, the participants of the committee would be interested in obtaining an outcome that is in their respective individual best interests and there can be no assurance of obtaining results most favorable to us in such proceedings. By participating on such committees, our Advisor may be deemed to have duties to other creditors represented by the committees, which might expose our Advisor to liability to such other creditors who disagree with our Advisor's actions.

While our Advisor intends to comply with all applicable securities laws and to make judgments concerning restrictions on trading in good faith, our Advisor may trade in a portfolio company's securities while engaged in the portfolio company's restructuring activities. Such trading creates a risk of litigation and liability that may cause our Advisor and/or us to incur significant legal fees and potential losses.

We cannot assure the accuracy of projections and forecasts used by our Advisor.

Our Advisor may rely upon projections, forecasts or estimates developed by us or a portfolio company in which we are invested concerning the portfolio company's future performance and cash flow. Projections, forecasts and estimates are forward-looking statements and are based upon certain assumptions. Actual events are difficult to predict and beyond our control. Actual events may differ from those assumed. Some important factors that could cause actual results to differ materially from those in

any forward-looking statements include changes in interest rates, domestic and foreign business, market, financial or legal conditions, differences in the actual allocation of our investments among asset groups from that described herein, the degree to which our investments are hedged and the effectiveness of such hedges, among others. Accordingly, there can be no assurance that estimated returns or projections can be realized or that actual returns or results will not be materially lower than those estimated therein.

We are a non-diversified investment company within the meaning of the 1940 Act, and therefore we are not limited by the 1940 Act with respect to the proportion of our assets that may be invested in securities of a single issuer or industry.

We are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. Beyond the Diversification Tests (as defined above in "Item 1. Business – Certain U.S. Federal Income Tax Consequences—Election to be Taxed as a RIC") associated with our qualification as a RIC under the Code, we do not have fixed guidelines for diversification. As such, our assets may not be diversified. Any such non-diversification would increase the risk of loss to us if there was a decline in the market value of any loan in which we had invested a large percentage of its assets. If a large portion of our assets is held in cash or similarly liquid form, our performance might be adversely affected. Investment in a non-diversified fund will generally entail greater risks than investment in a "diversified" fund. We may have a more concentrated or less broad and varied portfolio than an average mutual fund. A more concentrated portfolio can cause a portfolio such as ours to have higher volatility. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Our portfolio may be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry.

Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.

Following our initial investment in a portfolio company, we may decide to provide additional funds to such portfolio company, seeking to:

There is no assurance that we will make follow-on investments or that we will have sufficient funds to make all or any of such investments. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we may not want to increase our level of risk, because we prefer other opportunities or because we are inhibited by compliance with BDC requirements of the 1940 Act or the desire to maintain our qualification as a RIC. Our ability to make follow-on investments may also be limited by Bain Capital Credit and our Advisor's allocation policy or our ability to comply with our exemptive relief. Any decision by us not to make follow-on investments or its inability to make such investments may have a substantial adverse effect on a portfolio company in need of such an investment. Additionally, a failure to make such investments may result in a lost opportunity for us to increase its participation in a successful portfolio company or the dilution of our ownership in a portfolio company if a third party invests in the portfolio company.

Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies, and such portfolio companies may not generate sufficient cash flow to service their debt obligations to us.

The characterization of certain of our investments as senior debt or senior secured debt does not mean that such debt will necessarily be repaid in priority to all other obligations of the businesses in which we invest. Furthermore, debt and other liabilities incurred by non-guarantor subsidiaries of the borrowers of senior secured loans made by us may be structurally senior to the debt held by us. In the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, the debt and other liabilities of such subsidiaries could be repaid in full before any distribution can be made to an obligor of the senior secured loans held by us. Further, portfolio companies will typically incur trade credit and other liabilities or indebtedness, which by their terms may provide that their holders are entitled to receive principal payments on or before the dates payments are due in respect of the senior secured loans held by us.

Where we hold a first lien to secure senior indebtedness, the portfolio companies may be permitted to issue other senior loans with liens that rank junior to the first liens granted to us. The intercreditor rights of the holders of such other junior lien debt may, in any liquidation, reorganization, insolvency, dissolution or bankruptcy of such a portfolio company, affect the recovery that we would have been able to achieve in the absence of such other debt.

Additionally, certain loans that we may make to portfolio companies may be secured on a second priority basis by the same collateral securing senior secured debt of such companies. The first priority liens on the collateral will secure the portfolio company's obligations under any outstanding senior debt and may secure certain other future debt that may be permitted to be incurred by the portfolio company under the agreements governing the loans. The holders of obligations secured by first priority liens on the collateral will generally control the liquidation of, and be entitled to receive proceeds from, any realization of the collateral to repay their obligations in full before us. In addition, the value of the collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from sales of all of the collateral would be sufficient to satisfy the loan obligations secured by the second priority liens after payment in full of all obligations secured by the first priority liens on the collateral. If such proceeds were not sufficient to repay amounts outstanding under the loan obligations secured by the second priority liens, then we, to the extent not repaid from the proceeds of the sale of the collateral, will only have an unsecured claim against the portfolio company's remaining assets, if any.

Even where the senior loans held by us are secured by a perfected lien over a substantial portion of the assets of a portfolio company and its subsidiaries, the portfolio company and its subsidiaries will often be able to incur a substantial amount of additional indebtedness, which may have an exclusive lien over particular assets. For example, debt and other liabilities incurred by non-guarantor subsidiaries of portfolio companies will be structurally senior to the debt held by us. Accordingly, any such debt and other liabilities of such subsidiaries would, in the event of liquidation, dissolution, insolvency, reorganization or bankruptcy of such subsidiary, be repaid in full before any distributions to an obligor of the loans held by us. Furthermore, these other assets over which other lenders have a lien may be substantially more liquid or valuable than the assets over which we have a lien.

The rights we may have with respect to the collateral securing the loans we make to our portfolio companies with senior debt outstanding may also be limited pursuant to the terms of one or more intercreditor agreements that we enter into with the holders of such senior debt. Under a typical intercreditor agreement, at any time that obligations that have the benefit of the first priority liens are

outstanding, any of the following actions that may be taken in respect of the collateral will be at the direction of the holders of the obligations secured by the first priority liens:

We may not have the ability to control or direct such actions, even if our rights are adversely affected.

We may, from time to time, incur contingent liabilities in connection with an investment. For example, we may acquire a revolving credit or delayed draw term facility that has not yet been fully drawn or may originate or make a secondary purchase of a revolving credit facility. If the borrower subsequently draws down on the facility, we will be obligated to fund the amounts due. In connection with the disposition of an investment in loans and private securities, we may be required to make representations about the business and financial affairs of the portfolio company typical of those made in connection with the sale of a business. We may also be required to indemnify the purchasers of such investment to the extent that any such representations turn out to be inaccurate or with respect to potential liabilities. We may incur numerous other types of contingent liabilities. There can be no assurance that we will adequately reserve for its contingent liabilities and that such liabilities will not have an adverse effect on us.

We may be subject to risks under hedging transactions and may become subject to risk if we invest in non-U.S. securities.

Our investment strategy contemplates potential investments in securities of non-U.S. companies to the extent permissible under the 1940 Act. Investing in loans and securities of non-U.S. issuers involves additional risks not typically associated with investing in U.S. companies. These risks include changes in exchange control regulations, political and social instability, expropriation, imposition of foreign taxes (potentially at confiscatory levels), less liquid markets, less available information than is generally the case in the United States, higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility. There may be less information publicly available about a non-U.S. issuer than about a U.S. issuer, and non-U.S. issuers may not be subject to accounting, auditing and financial reporting standards and practices comparable to those in the United States. These risks are likely to be more pronounced for investments in companies located in emerging markets and particularly for middle-market companies in these economies. Further, our investments that are denominated in a non-U.S. currency will be subject to the risk that the value of a particular currency will change in relation to the U.S. dollar. The rates of exchange between the U.S. dollar and other currencies are affected by many factors, including forces of supply and demand in the foreign exchange markets. These rates are also affected by the international balance of payments and other economic and financial conditions, government intervention, speculation and other factors. We are not obligated to engage in any currency hedging operations, and there can be no assurance as to the success of any hedging operations that we may implement. We may employ hedging techniques to minimize these risks, but we cannot assure you that such strategies will be effective or without risk to us. The values and relative yields

of investments in the securities markets of different countries, and their associated risks, are expected to change independently of each other.

We are authorized to use various investment strategies to hedge interest rate or currency exchange risks. These strategies are generally accepted as portfolio management techniques and are regularly used by many investment funds and other institutional investors. Techniques and instruments may change over time as new instruments and strategies are developed or regulatory changes occur. We may use any or all such types of interest rate hedging transactions and currency hedging transactions at any time and no particular strategy will dictate the use of one transaction rather than another. The choice of any particular interest rate hedging transactions and currency hedging transactions will be a function of numerous variables, including market conditions. Our investments or liabilities may be denominated in currencies other than the U.S. dollar, and hence the value of such investments, or the amount of such liabilities, will depend in part on the relative strength of the U.S. dollar. We may be affected favorably or unfavorably by exchange control regulations or changes in the exchange rate between foreign currencies and the U.S. dollar.

Changes in foreign currency exchange rates may also affect the value of distributions and interest earned as well as the level of gains and losses realized on the sale of securities. Although we intend to engage in any interest rate hedging transactions and currency hedging transactions only for hedging purposes and not for speculation, use of interest rate hedging transactions and currency hedging transactions involves certain inherent risks. These risks include (i) the possibility that the market will move in a manner or direction that would have resulted in gain for us had an interest rate hedging transaction or currency hedging transaction not been utilized, in which case it would have been better had we not engaged in the interest rate hedging transaction or currency hedging transaction, (ii) the risk of imperfect correlation between the risk sought to be hedged and the interest rate hedging transaction or currency hedging transaction utilized, (iii) potential illiquidity for the hedging instrument utilized, which may make it difficult for us to close-out or unwind an interest rate hedging transaction or currency hedging transaction and (iv) credit risk with respect to the counterparty to the interest rate hedging transaction or currency hedging transaction. In addition, it might not be possible for us to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those loans and securities would likely fluctuate as a result of factors not related to currency fluctuations.

Our investments in OID and PIK interest income may expose us to risks associated with such income being required to be included in accounting income and taxable income prior to receipt of cash.

Our investments may include OID and PIK instruments. To the extent OID and PIK interest income constitute a portion of our income, we will be exposed to risks associated with such income being required to be included in accounting income and taxable income prior to receipt of cash, including the following:

We are subject to risks associated with investing alongside other third parties, including our joint venture.

We have invested in a joint venture, ABC Complete Financing Solution LLC, and may invest in additional or different joint ventures alongside third parties through partnerships, joint ventures or other entities in the future. Such investments may involve risks not present in investments where a third party is not involved, including the possibility that such third party may at any time have economic or business interests or goals which are inconsistent with ours, or may be in a position to take action contrary to our investment objectives. In addition, we may in certain circumstances be liable for actions of such third party.

More specifically, joint ventures involve a third party that has approval rights over activity of the joint venture. The third party may take actions that are inconsistent with our interests. For example, the third party may decline to approve an investment for the joint venture that we otherwise want the joint venture to make. A joint venture may also use investment leverage which magnifies the potential for gain or loss on amounts invested. Generally, the amount of borrowing by the joint venture is not included when calculating our total borrowing and related leverage ratios and is not subject to asset coverage requirements imposed by the 1940 Act. If the activities of the joint venture were required to be consolidated with our activities because of a change in GAAP rules or SEC staff interpretations, it is likely that we would have to reorganize any such joint venture.

We will be subject to corporate-level income tax if we are unable to qualify as a RIC.

In order to qualify and be eligible for taxation as a RIC under the Code, we must meet certain source-of-income, asset diversification and distribution requirements. The distribution requirement for a RIC is satisfied if we distribute dividends in respect of each taxable year of an amount equal to at least 90% of our investment company taxable income, determined without regard to any deduction for dividends paid, to our stockholders. We will be subject, to the extent we use debt financing, to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to enable us to be eligible for taxation as a RIC. If we are unable to obtain cash from other sources, we may fail to be eligible for taxation as a RIC and, thus, may be subject to corporate-level income tax. To qualify and be eligible for taxation as a RIC, we must also meet certain asset diversification requirements at the end of each quarter of our taxable year. These tests may result in our having to dispose of certain investments quickly in order to prevent the loss of our qualifications as a RIC. Because most of our investments will be in private or thinly traded public companies, any such dispositions could be made at disadvantageous prices and may result in substantial losses. If we fail to qualify to be eligible for taxation as a RIC for any reason and become subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distributions to our stockholders and the amount of funds available for new investments. Such a failure would have a material adverse effect on us and our stockholders. See "Item 1. Business – Certain U.S. Federal Income Tax Consequences—Election to be Taxed as a RIC"

Shareholders may be required to pay tax in excess of the cash they receive.

Under the DRIP, if a stockholder owns shares of our common stock, the stockholder will have all cash distributions automatically reinvested in additional shares of that stockholder's common stock unless such stockholder, or his, her or its nominee on such stockholder's behalf, specifically "opts out" of the DRIP by delivering a written notice to the plan administrator prior to the record date of the next distribution. If a stockholder does not "opt out" of the DRIP, that stockholder will be deemed to have received, and for U.S. federal income tax purposes will be taxed on, the amount reinvested in our common stock to the extent the amount reinvested was not a tax-free return of capital. As a result, a stockholder may have to use funds from other sources to pay U.S. federal income tax liability on the value of the common stock received. Even if a stockholder chooses to "opt out" of the DRIP, we will have the ability to declare a large portion of a dividend in shares of our common stock instead of in cash in order to satisfy the Annual Distribution Requirement (as defined above "Item 1. Business – Certain U.S. Federal Income Tax Consequences—Election to be Taxed as a RIC"). As long as a portion of this dividend is paid in cash and certain requirements are met, the entire distribution will be treated as a dividend for U.S. federal income tax purposes. As a result, a stockholder generally will be subject to tax on 100% of the fair market value of the dividend on the date the dividend is received by the stockholder in the same manner as a cash dividend, even though most of the dividend was paid in shares of common stock.

We may have difficulty paying our required distributions if we recognize income before, or without, receiving cash representing such income.

For U.S. federal income tax purposes, we will include in income certain amounts that we have not yet received in cash, such as amounts accrued as OID. OID may arise if we receive warrants in connection with the making of a loan and in other circumstances, or through contracted PIK interest, which represents contractual interest added to the loan balance and due at the end of the loan term. Such OID, which could be significant relative to our overall investment activities, or increases in loan balances as a result of contracted PIK arrangements, will be included in income regardless of whether we concurrently receive

any corresponding cash payments. We also may be required to include in income certain other amounts that we will not receive in cash concurrently with such inclusion.

Since in certain cases we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement in a given taxable year to distribute at least 90% of our investment company taxable income, determined without regard to any deduction for distributions paid, as distributions to our stockholders in order to maintain our ability to be eligible for treatment as a RIC. In such a case, we may have to sell some of our investments at times we would not consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. If we are not able to obtain such cash from other sources, we may fail to qualify to be eligible for treatment as a RIC and thus be subject to corporate-level income tax.

We may experience potential adverse tax consequences as a result of not being treated as a "publicly offered regulated investment company."

We will be treated as a "publicly offered regulated investment company" (within the meaning of Section 67 of the Code) if either (i) shares of our common stock and our preferred stock (if any) collectively are held by at least 500 persons at all times during a taxable year, (ii) shares of our common stock are treated as regularly traded on an established securities market or (iii) shares of our common stock are continuously offered pursuant to a public offering (within the meaning of Section 4 of the Securities Act). We cannot assure you that we will be treated as a publicly offered regulated investment company for all years. If we are not treated as a publicly offered regulated investment company for any calendar year, each U.S. stockholder that is an individual, trust or estate will be treated as having received a distribution from us in the amount of such U.S. stockholder's allocable share of the management and incentive fees paid to our Advisor and certain of our other expenses for the calendar year, and these fees and expenses will be treated as miscellaneous itemized deductions of such U.S. stockholder. For taxable years beginning before 2026, miscellaneous itemized deductions generally are not deductible by a U.S. stockholder that is an individual, trust or estate. For taxable years beginning in 2026 or later, miscellaneous itemized deductions generally are deductible by a U.S. stockholder that is an individual, trust or estate only to the extent that the aggregate of such U.S. stockholder's miscellaneous itemized deductions exceeds 2% of such U.S. stockholder's adjusted gross income for U.S. federal income tax purposes, are not deductible for purposes of the alternative minimum tax and are subject to the overall limitation on itemized deductions under Section 68 of the Code.

We may be subject to withholding of U.S. federal income tax on distributions for non-U.S. stockholders.

Distributions by a BDC generally are treated as dividends for U.S. tax purposes, and will be subject to U.S. income or withholding tax unless the stockholder receiving the distribution qualifies for an exemption from U.S. tax, or the distribution is subject to one of the special look-through rules described below. Distributions paid out of net capital gains can qualify for a reduced rate of taxation in the hands of an individual U.S. stockholder, and an exemption from U.S. tax in the hands of a non-U.S. stockholder.

However, if properly reported by a RIC as such, dividend distributions by the RIC derived from certain interest income (such distributions, "interest-related dividends") and certain net short-term capital gains (such distributions, "short-term capital gain dividends") generally are exempt from U.S. withholding tax otherwise imposed on non-U.S. stockholders. Interest-related dividends are dividends that are attributable to "qualified net interest income" (i.e., "qualified interest income," which generally consists of certain interest and OID on obligations "in registered form" as well as interest on bank deposits earned by a RIC, less allocable deductions) from sources within the United States. Short-term capital gain dividends are dividends that are attributable to net short-term capital gains, other than short-term capital gains recognized on the disposition of U.S. real property interests, earned by a RIC. However, no assurance can be given as to whether any of our distributions will be eligible for this exemption from U.S. withholding tax

or, if eligible, will be reported as such by us. Furthermore, in the case of shares of our stock held through an intermediary, the intermediary may have withheld U.S. federal income tax even if we reported the payment as an interest-related dividend or short-term capital gain dividend. Since our common stock will be subject to significant transfer restrictions, and an investment in our common stock will generally be illiquid, non-U.S. stockholders whose distributions on our common stock are subject to U.S. withholding tax may not be able to transfer their shares of our common stock easily or quickly or at all.

A failure of any portion of our distributions to qualify for the exemption for interest-related dividends or short-term capital gain dividends would not affect the treatment of non-U.S. stockholders that qualify for an exemption from U.S. withholding tax on dividends by reason of their special status (for example, foreign government-related entities and certain pension funds resident in favorable treaty jurisdictions).

We may retain income and capital gains in excess of what is permissible for excise tax purposes and such amounts will be subject to 4% U.S. federal excise tax, reducing the amount available for distribution to taxpayers.

We may retain some income and capital gains in the future, including for purposes of providing us with additional liquidity, which amounts would be subject to the 4% U.S. federal excise tax. In that event, we will be liable for the tax on the amount by which we do not meet the foregoing distribution requirement. See Item 1. Business – Certain U.S. Federal Income Tax Consequences.

Our business may be adversely affected if we fail to maintain our qualification as a RIC.

To maintain RIC tax treatment under the Code, we must meet the Annual Distribution Requirement, 90% Income Test and Diversification Tests described below and defined and further described in Item 1. Business – "Certain U.S. Federal Income Tax Consequences." The Annual Distribution Requirement will be satisfied if we distribute dividends to our stockholders in respect of each taxable year of an amount generally at least equal to 90% of our investment company taxable income, determined without regard to any deduction for distributions paid. In this regard, a RIC may, in certain cases, satisfy the Annual Distribution Requirement by distributing dividends relating to a taxable year after the close of such taxable year under the "spillback dividend" provisions of Subchapter M of the Code. We will be subject to tax, at regular corporate rates, on any retained income and/or gains, including any short-term capital gains or long-term capital gains. We must also satisfy the Excise Tax Avoidance Requirement, which is an additional distribution requirement with respect to each calendar year in order to avoid the imposition of a 4% excise tax on the amount of any under-distribution. Because we may use debt financing, we are subject to (i) an asset coverage ratio requirement under the 1940 Act and may, in the future, be subject to (ii) certain financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the distribution requirements. If we are unable to obtain cash from other sources, or chose or be required to retain a portion of our taxable income or gains, we could (i) be required to pay excise tax and (ii) fail to qualify for RIC tax treatment, and thus become subject to corporate-level income tax on our taxable income (including gains).

The 90% Income Test will be satisfied if we earn at least 90% of our gross income each taxable year from distributions, interest, gains from the sale of stock or securities, or other income derived from the business of investing in stock or securities. The Diversification Tests will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. To satisfy the Diversification Tests, at least 50% of the value of our assets at the close of each quarter of each taxable year must consist of cash, cash equivalents (including receivables), U.S. government securities, securities of other RICs, and other acceptable securities, and no more than 25% of the value of our assets can be invested in the securities, other than U.S. government securities or securities of other RICs, of one issuer, of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or of certain "qualified publicly traded

partnerships." Failure to meet these requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC status. Because most of our investments will be in private companies, and therefore will be relatively illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses.

We may invest in certain debt and equity investments through taxable subsidiaries and the net taxable income of these taxable subsidiaries will be subject to federal and state corporate income taxes. We also may invest in certain foreign debt and equity investments which could be subject to foreign taxes (such as income tax, withholding, and value added taxes). If we fail to maintain RIC tax treatment for any reason and are subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution, and the amount of our distributions.

Significant U.S. federal tax reform legislation was recently enacted that, among other things, permanently reduces the maximum federal corporate income tax rate, reduces the maximum individual income tax rate (effective for taxable years 2018 through 2025), restricts the deductibility of business interest expense, changes the rules regarding the calculation of net operating loss deductions that may be used to offset taxable income, expands the circumstances in which a foreign corporation will be treated as a "controlled foreign corporation" and, under certain circumstances, requires accrual method taxpayers to recognize income for U.S. federal income tax purposes no later than the income is taken into account as revenue in an applicable financial statement. The impact of this new legislation on us, our stockholders and entities in which we may invest is uncertain. Prospective investors are urged to consult their tax advisors regarding the effects of the new legislation on an investment in us.

The investments we make in accordance with our investment objectives may result in a higher amount of risk than alternative investment options and a higher risk of volatility or loss of principal. Therefore, an investment in shares of our common stock may not be suitable for someone with lower risk tolerance. In addition, our common stock is intended for long-term investors who can accept the risks of investing primarily in illiquid loans and other debt or debt-like instruments and should not be treated as a trading vehicle.

The market price and liquidity of the market for shares of our common stock that will prevail in the market after the IPO may be higher or lower than the price you pay and may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include:

In the past, following periods of volatility in the market price of a company's securities, securities class action litigation has often been brought against that company. If our stock price fluctuates significantly, we may be the target of securities litigation in the future. Securities litigation could result in substantial costs and divert management's attention and resources from our business.

Prior to the IPO, there had been no public market for our common stock, and we cannot assure you that the market price of shares of our common stock will not decline following the IPO.

We cannot assure you that a trading market will develop for our common stock after the IPO or, if one develops, that such trading market can be sustained. In addition, we cannot predict the prices at which our common stock will trade, whether at, above or below NAV. Shares of companies offered in an initial public offering often trade at a discount to the initial offering price due to underwriting discounts and related offering expenses. Also, shares of closed-end investment companies, including BDCs, frequently trade at a discount from NAV, and our common stock may also be discounted in the market. This characteristic of closed-end investment companies is separate and distinct from the risk that our NAV per share may decline and may be greater for investors expecting to sell shares of common stock purchased in the offering soon after the offering. In addition, if our common stock trades below its NAV, we will generally not be able to sell additional shares of our common stock to the public at its market price without, among other things, the requisite stockholders approve such a sale.

Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock.

Upon completion of the IPO, we have 51,482,137.46 shares of common stock outstanding. Following the IPO and the expiration of applicable lock-up periods, sales of substantial amounts of our common stock, or the availability of such shares for sale, could adversely affect the prevailing market prices for our common stock. If this occurs and continues, it could impair our ability to raise additional capital through the sale of equity securities should we desire to do so.

Purchases of our common stock under the 10b5-1 Plan may result in the price of our common stock being higher than the price that otherwise might exist in the open market.

BCSF Investments, LLC and certain individuals, including Michael A. Ewald, our Chief Executive Officer and a Managing Director of Bain Capital Credit, Jonathan S. Lavine, Co-Managing Partner of Bain Capital and Founder and Chief Investment Officer of Bain Capital Credit, John Connaughton, Co-Managing Partner of Bain Capital, LP, Jeffrey B. Hawkins, Chairman of our Board of Directors and a Managing Director of Bain Capital Credit, and Michael J. Boyle, our Vice President and Treasurer and a Managing Director of Bain Capital Credit, adopted the 10b5-1 Plan in accordance with Rules 10b5-1 and 10b-18 under the Exchange Act, under which such parties will buy up to $20 million in the aggregate of our common stock in the open market during the period beginning after four full calendar weeks after the closing of the IPO and ending on the earlier of the date on which the capital committed to the 10b5-1 Plan has been exhausted or one year after the closing of the IPO, subject to certain conditions. Purchases of our common stock in the open market pursuant to the 10b5-1 Plan will be subject to certain conditions and conducted in accordance with Rule 10b-18 under the Exchange Act and other applicable securities laws and regulations that set certain restrictions on the method, timing, price and volume of stock repurchases. Whether purchases will be made pursuant to the 10b5-1 Plan and how much will be purchased at any time is uncertain, dependent on prevailing market prices and trading volumes, all of which we cannot predict. These activities may have the effect of maintaining the market price of our common stock or retarding a decline in the market price of the common stock, and, as a result, the price of our common stock may be higher than the price that otherwise might exist in the open market.

Our stockholders will experience dilution in their ownership percentage if they opt out of our DRIP.

We have adopted a DRIP, pursuant to which we will reinvest all cash distributions declared by the Board on behalf of stockholders who do not elect to receive their distributions in cash. As a result, if the Board authorizes, and we declare, a cash distribution, then our stockholders who have not opted out of our DRIP will have their cash distributions automatically reinvested in additional common stock, rather than receiving the cash distribution. See Item 1. Business "Dividend Reinvestment Plan" for a description of our dividend policy and obligations.

If on the payment date for any distribution, the most recently computed NAV per share is equal to or less than the closing market price plus estimated per share fees (which include any applicable brokerage commissions the plan agent is required to pay), the plan agent will invest the distribution amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to a participant's account will be determined by dividing the dollar amount of the distribution by the most recently computed NAV per share provided that, if the NAV is less than or equal to 95% of the then current market price per share, the dollar amount of the distribution will be divided by 95% of the market price on the payment date. Accordingly, participants in the DRIP may receive a greater number shares of our common stock than the number of shares associated with the market price of our common stock, resulting in dilution for other stockholders. Stockholders that opt out of our DRIP will experience dilution in their ownership percentage of our common stock over time.

We may in the future determine to issue preferred stock, which could adversely affect the market value of our common stock.

The issuance of shares of preferred stock with dividend or conversion rights, liquidation preferences or other economic terms more favorable to the holders of preferred stock than to our common stockholders could adversely affect the market price for our common stock by making an investment in the common stock less attractive. In addition, the dividends on any preferred stock we issue must be cumulative. Payment of dividends and repayment of the liquidation preference of preferred stock must take preference over any distributions or other payments to our common stockholders, and holders of

preferred stock are not subject to any of our expenses or losses and are not entitled to participate in any income or appreciation in excess of their stated preference (other than convertible preferred stock that converts into common stock). In addition, under the 1940 Act, participating preferred stock and preferred stock constitutes a "senior security" for purposes of the asset coverage test.

There is a risk that you may not receive distributions or that our distributions may not grow over time and a portion of our distributions may be a return of capital.

We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by the impact of one or more of the risk factors described in this prospectus. If we are unable to satisfy the asset coverage test applicable to us as a BDC, or if we violate certain covenants under our BCSF Revolving Credit Facility or any future credit or other borrowing facility, our ability to pay distributions to our stockholders could be limited because we may be required by its terms to use all payments of interest and principal that we receive from our current investments as well as any proceeds received from the sale of our current investments to repay amounts outstanding thereunder. All distributions will be paid at the discretion of our Board and will depend on our earnings, financial condition, maintenance of our RIC status, compliance with applicable BDC regulations, compliance with covenants under our BCSF Revolving Credit Facility or any future credit or other borrowing facility and such other factors as our Board may deem relevant from time to time.

Furthermore, the tax treatment and characterization of our distributions may vary significantly from time to time due to the nature of our investments. The ultimate tax characterization of our distributions made during a taxable year may not finally be determined until after the end of that taxable year. The distributions we pay to our stockholders in a year may exceed our net ordinary income and capital gains for that year and, accordingly, a portion of such distributions may constitute a return of capital for U.S. federal income tax purposes that would reduce a stockholder's adjusted tax basis in its shares of our common stock or preferred stock and correspondingly increase such stockholder's gain, or reduce such stockholder's loss, on disposition of such shares. Distributions in excess of a stockholder's adjusted tax basis in its shares of our common stock or preferred stock will generally constitute capital gains to such stockholder.

A distribution from a RIC consisting of a return of capital for U.S. federal income tax purposes is not a distribution of the RIC's net ordinary income or capital gains. Accordingly, stockholders should carefully read any written disclosure accompanying a distribution from us and the information about the specific tax characteristics of our distributions provided to stockholders after the end of each calendar year, and should not assume that the source of any distribution is our net ordinary income or capital gains.

Our stockholders do not have preemptive rights to any shares of our common stock we issue in the future. To the extent that we issue additional equity interests at or below NAV your percentage ownership interest in us may be diluted. In addition, depending upon the terms and pricing of any future and the value of our investments, you may also experience dilution in the book value and fair value of your shares of our common stock.

Under the 1940 Act, we generally are prohibited from issuing or selling shares of our common stock at a price below NAV per share, which may be a disadvantage as compared with certain public companies. We may, however, sell up to 25% of our then outstanding shares of our common stock, or warrants, options, or rights to acquire shares of our common stock, at a price below the current NAV of shares of our common stock if the Board determines that such sale is in our best interests and the best

interests of our stockholders, and our stockholders, including a majority of those stockholders that are not affiliated with us, approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of the Board, closely approximates the fair value of such securities (less any distributing commission or discount). If we raise additional funds by issuing shares of our common stock or senior securities convertible into, or exchangeable for, shares of our common stock, then the percentage ownership of our stockholders at that time will decrease and you will experience dilution.

Public companies incur legal, accounting and other expenses, including costs associated with the periodic reporting requirements applicable to a company whose securities are registered under the Exchange Act, as well as additional corporate governance requirements, including requirements under the Sarbanes-Oxley Act. Accordingly, while we currently file annual, quarterly and current reports with respect to our business and financial condition under the Exchange Act, we will incur significant additional costs as a result of being a public company. These requirements may place a strain on our systems and resources. The Sarbanes-Oxley Act requires that we maintain effective disclosure controls and procedures and internal controls over financial reporting, which are discussed below. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal controls, significant resources and management oversight will be required. We will be implementing additional procedures, processes, policies and practices for the purpose of addressing the standards and requirements applicable to public companies. These activities may divert management's attention from other business concerns, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. We expect to incur significant additional annual expenses related to these steps and, among other things, directors' and officers' liability insurance, director fees, reporting requirements of the SEC, transfer agent fees, additional administrative expenses payable to our Administrator to compensate it for hiring additional accounting, legal and administrative personnel, increased auditing and legal fees and similar expenses.

We currently are, and expect to remain for so long as we satisfy the applicable standard under the JOBS Act, an "emerging growth company," as defined in the JOBS Act, and we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies," including not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act. We expect to remain an emerging growth company until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1.07 billion, (ii) the last day of our fiscal year following the fifth anniversary of the date of our initial public offering, or December 31, 2023, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt, or (iv) the date on which we qualify as a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock held by non-affiliates equals $700 million or more as of the last business day of our most recently completed second fiscal quarter. Although we expect to become a large accelerated filer or otherwise cease to qualify as an emerging growth company at a point in time prior to the last day of our fiscal year following the fifth anniversary of the date of our initial public offering, we currently are a "non-accelerated filer" under the Exchange Act, and thus remain eligible to comply with the less rigorous disclosure and other requirements applicable to emerging growth companies under the federal securities laws. We cannot predict if investors will find shares of our common stock less attractive because we will rely on these exemptions. If some investors find our shares of common stock less attractive as a result, there may be a less active trading market for our shares and our share price may be more volatile.

In addition, Section 107 of the JOBS Act also provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act, for

complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing not to take advantage of the extended transition period for complying with new or revised accounting standards, which may make it more difficult for investors and securities analysts to compare our financial statements to companies that comply with private company effective dates.

Efforts to comply with Section 404 of the Sarbanes-Oxley Act will involve significant expenditures, and non-compliance with Section 404 of the Sarbanes-Oxley Act may adversely affect us and the market price of our common stock.

Under current SEC rules, we are required to report on our internal control over financial reporting pursuant to Section 404(a) of the Sarbanes-Oxley Act, and related rules and regulations of the SEC. We are required to review on an annual basis our internal control over financial reporting, and on a quarterly and annual basis to evaluate and disclose changes in our internal control over financial reporting. As an emerging growth company we are exempt from Section 404(b) of Sarbanes Oxley.

As a result, we expect to incur additional expenses in the near term that may negatively impact our financial performance and our ability to make distributions. This process also will result in a diversion of management's time and attention. We cannot be certain as to the timing of completion of our evaluation, testing and remediation actions or the impact of the same on our operations, and we may not be able to ensure that the process is effective or that our internal control over financial reporting is or will be effective in a timely manner. In the event that we are unable to maintain or achieve compliance with Section 404 of the Sarbanes-Oxley Act and related rules, we and the market price of our common stock may be adversely affected.

We maintain our principal executive office at 200 Clarendon Street, 37th Floor, Boston, Massachusetts 02116. We do not own any real estate. We believe that our present facilities are adequate to meet our current needs. If new or additional space is required, we believe that adequate facilities are available at competitive prices in the same area.

We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us. From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under loans to or other contracts with our portfolio companies.

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Our common stock is traded on the New York Stock Exchange under the symbol "BCSF." Prior to the completion of the IPO our outstanding common stock was offered and sold in transactions exempt from registration under the Securities Act under Section 4(a)(2) and Regulation D, as well as under Regulation S under the Securities Act.

Our common stock has historically traded below our NAV per share and may in the future trade at levels above NAV that may prove to be unsustainable. It is not possible to predict whether our common stock will trade at, above or below NAV.

As of February 25, 2019, there were approximately 3,221 holders of record of our common stock.

To the extent that we have income available, we intend to distribute quarterly distributions to our stockholders. Our quarterly distributions, if any, will be determined by the Board. Any distributions to our stockholders will be declared out of assets legally available for distribution.

The Company has elected to be treated as a RIC under Subchapter M of the Code. To qualify for and maintain RIC tax treatment, among other things, the Company must distribute dividends to our stockholders in respect of each taxable year of an amount at least equal to 90% of the sum of our net ordinary income and net short-term capital gains in excess of our net long-term capital losses ("investment company taxable income"), determined without regard to any deduction for distributions paid. In order to avoid 4% excise taxes imposed on RICs, the Company is required to distribute dividends to its stockholders in respect of each calendar year of an amount at least equal to the sum of: (1) 98% of our net ordinary income (taking into account certain deferrals and elections) for such calendar year; (2) 98.2% of our capital gains in excess of capital losses ("capital gain net income"), adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of such calendar year; and (3) any net ordinary income and capital gain net income for preceding years that were not distributed during such years and on which the Company previously did not incur any U.S. federal income tax.

We currently intend to distribute net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually out of the assets legally available for such distributions. However, we may decide in the future to retain such capital gains for investment, incur a corporate-level tax on such capital gains, and elect to treat such capital gains as deemed distributions to you. If this happens, stockholders will be treated for U.S. federal income tax purposes as if stockholders had received an actual distribution of the capital gains that we retain and reinvested the net after tax proceeds in us. In this situation, stockholders would be eligible to claim a tax credit equal to their allocable share of the tax the Company paid on the capital gains deemed distributed to stockholders. We cannot offer assurance that we will achieve results that will permit us to pay any cash distributions, and if we issue senior securities, we will be prohibited from making distributions if doing so would cause us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if such distributions are limited by the terms of any of our borrowings.

We have adopted a DRIP that provides for the reinvestment of dividends and other distributions on behalf of our stockholders, unless a stockholder elects to receive cash as provided below. As a result, if our Board declares a cash distribution, then our stockholders who acquire shares of our common stock after our listing and have not elected to "opt out" of our DRIP will have their cash distributions automatically reinvested in additional shares of our common stock as described below. Any stockholders who held shares of our common stock prior to our listing had to opt in to the DRIP.

No action is required on the part of a registered stockholder who acquired shares of our common stock after our listing on the New York Stock Exchange to have his or her cash distribution reinvested in shares of our common stock. A registered stockholder may elect to receive an entire distribution in cash by notifying the plan administrator and our transfer agent and registrar in writing so that such notice is received by the plan administrator no later than the record date for distributions to stockholders. The plan administrator will set up an account for each stockholder to acquire shares in non-certificated form through the plan if such stockholders have not elected to receive their distributions in cash. Those stockholders who hold shares through a broker or other financial intermediary may receive distributions in cash by notifying their broker or other financial intermediary of their election.

The following graph compares the return on our common stock with that of the S&P BDC Index and the Standard & Poor's 500 Stock Index, for the period from November 15, 2018, the date our common stock began trading, through December 31, 2018. The graph assumes that, on November 15, 2018, a person invested $100 in each of our common stock, the Standard & Poor's 500 Stock Index and the Standard & Poor's BDC Index. The graph measures total shareholder return, which takes into account both changes in stock price and dividends. It assumes that dividends paid are reinvested in like securities. The graph also assumes the reinvestment of all cash distributions prior to any tax effect. The graph and other information furnished under this Part II Item 5 of this annual report on Form 10-K shall not be deemed to be "soliciting material" or to be "filed" with the SEC or subject to Regulation 14A or 14C under, or to the

liabilities of Section 18 of, the Exchange Act. The stock price performance included in the below graph is not necessarily indicative of future stock performance.

Except as previously reported by the Company on its current reports on Form 8-K, we did not sell any securities during the period covered by this Annual Report that were not registered under the Securities Act.

The following table provides information regarding purchases of our common stock by certain individuals affiliated with the Company pursuant to the 10b5-1 Plan for each month from November 2018 (beginning November 15, 2018) through December 2018.

The tables below set forth our selected consolidated historical financial data for the periods indicated. The selected consolidated historical financial data as of and for the years ended December 31, 2018, 2017 and 2016 have been derived from our audited consolidated financial statements, which are included in the consolidated financial statements and related notes thereto included elsewhere in this Annual Report. Our historical results are not necessarily indicative of future results. The selected financial data in this section is not intended to replace the financial statements and is qualified in its entirety by the financial statements and related notes included in this filing.

The following selected consolidated financial data as of and for the years ended December 31, 2018, 2017 and 2016 should be read in conjunction with "Management's Discussion and Analysis of

Financial Condition and Results of Operations," and the consolidated financial statements and related notes thereto included elsewhere in this Annual Report:

	As of and for the Year Ended December 31, 2018		As of and for the Year Ended December 31, 2017		As of and for the Year Ended December 31, 2016

Consolidated Statements of operations data:
Total investment income	$	99,293,982	$	24,605,134	$	868,550
Total expenses, net of waivers		43,363,281		10,395,929		1,950,084

Net investment income (loss) before taxes		55,930,701		14,209,205		(1,081,534)
Excise tax expense		309		4,882		—

Net investment income (loss) after taxes		55,930,392		14,204,323		(1,081,534)
Net realized and unrealized gain (loss)		(29,285,198)		5,095,619		1,690,509

Net increase in net assets resulting from operations	$	26,645,194	$	19,299,942	$	608,975



Per share data:
Net investment income (loss)	$	1.45	$	0.73	$	(0.90)
Net increase in net assets resulting from operations	$	0.69	$	0.99	$	0.51
Distributions declared⁽¹⁾	$	1.52	$	0.70	$	0.015
Consolidated Statements of assets and liabilities data (at period end):
Total assets	$	1,791,014,099	$	988,251,310	$	176,855,085
Total investments, at fair value		1,727,805,671		831,578,071		107,942,008
Total liabilities		789,384,952		481,288,482		66,510,827
Total debt, net of unamortized debt issuance costs		634,924,582		451,000,000		59,100,000
Total net assets		1,001,629,147		506,962,828		110,344,258

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. The discussion and analysis contained in this section refers to our financial condition, results of operations and cash flows. The information contained in this section should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report. Please see "Forward-Looking Statements" for a discussion of the uncertainties, risks and assumptions associated with this discussion and analysis. Our actual results could differ materially from those anticipated by such forward-looking information due to factors discussed under "Forward-Looking Statements" appearing elsewhere in this report.

Bain Capital Specialty Finance, Inc. (the "Company", "we", "our" and "us") is an externally managed specialty finance company focused on lending to middle market companies. We have elected to be regulated as a business development company (a "BDC") under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the "1940 Act"). We are managed by BCSF Advisors, LP (our "Advisor" or "BCSF Advisors"), a subsidiary of Bain Capital Credit, LP ("Bain Capital Credit"). Our Advisor is registered as an investment adviser with the SEC under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). Our Advisor also provides the administrative services necessary for us to operate (in such capacity, our "Administrator" or "BCSF

Advisors"). Since we commenced operations on October 13, 2016 through December 31, 2018, we have invested approximately $2,180.4 million in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. We seek to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last-out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds.

On November 19, 2018, we closed our initial public offering (the "IPO") issuing 7,500,000 shares of our common stock at a public offering price of $20.25 per share. Shares of common stock of the Company began trading on the New York Stock Exchange under the symbol "BCSF" on November 15, 2018.

Our primary focus is capitalizing on opportunities within our Senior Direct Lending strategy, which seeks to provide risk-adjusted returns and current income to our stockholders by investing primarily in middle-market companies with between $10.0 million and $150.0 million in annual earnings before interest, taxes, depreciation and amortization ("EBITDA"). However, we may, from time to time, invest in larger or smaller companies. We generally seek to retain effective voting control in respect of the loans or particular classes of securities in which we invest through maintaining affirmative voting positions or negotiating consent rights that allow us to retain a blocking position. We focus on senior investments with a first or second lien on collateral and strong structures and documentation intended to protect the lender. We may also invest in mezzanine debt and other junior securities, including common and preferred equity, on an opportunistic basis, and in secondary purchases of assets or portfolios but such investments are not the principal focus of our investment strategy. In addition, we may invest, from time to time, in distressed debt, debtor-in-possession loans, structured products, structurally subordinate loans, investments with deferred interest features, zero-coupon securities and defaulted securities.

We generate revenues primarily through receipt of interest income from the investments we hold. In addition, we generate income from various loan origination and other fees, dividends on direct equity investments and capital gains on the sales of investments. The companies in which we invest use our capital for a variety of reasons, including to support organic growth, to fund changes of control, to fund acquisitions, to make capital investments and for refinancing and recapitalizations.

We expect that our level of investment activity may 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 level of investment and capital expenditures of such companies, the general economic environment, the amount of capital we have available to us and the competitive environment for the type of investments we make.

As a BDC, we may 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). Qualifying assets include investments in "eligible portfolio companies." Pursuant to rules adopted by the SEC, "eligible portfolio companies" include certain companies that do not have any securities listed on a national securities exchange and public companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million.

As a BDC, we may also invest up to 30% of our portfolio opportunistically in "non-qualifying" portfolio investments, such as investments in non-U.S. companies.

We primarily generate revenue in the form of interest income on debt investments and distributions on equity investments and, to a lesser extent, capital gains, if any, on equity securities that we may acquire in portfolio companies. Some of our investments may provide for deferred interest payments or payment-in-kind ("PIK") interest. The principal amount of the debt investments and any accrued but unpaid interest generally becomes due at the maturity date. In addition, we may generate revenue in the form of commitment, origination, structuring or diligence fees, fees for providing managerial assistance and consulting fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts into or against income over the life of the loan. We record contractual prepayment premiums on loans and debt securities as interest income.

Our debt investment portfolio consists of primarily floating rate loans. As of December 31, 2018 and December 31, 2017, 95.5% and 98.4%, respectively, of our debt investments, based on fair value, bore interest at floating rates, which may be subject to interest rate floors. Variable-rate investments subject to a floor generally reset periodically to the applicable floor, only if the floor exceeds the index. Trends in base interest rates, such as LIBOR, may affect our net investment income over the long term. In addition, our results may vary from period to period depending on the interest rates of new investments made during the period compared to investments that were sold or repaid during the period; these results reflect the characteristics of the particular portfolio companies that we invested in or exited during the period and not necessarily any trends in our business or macroeconomic trends.

Our primary operating expenses may include the payment of fees to our Advisor under the investment advisory agreement (the "Investment Advisory Agreement"), our allocable portion of overhead expenses under the administration agreement (the "Administration Agreement") and other operating costs, including those described below. The Base Management Fee and Incentive Fee compensate our Advisor for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other out-of-pocket costs and expenses of our operations and transactions, including:

To the extent that expenses to be borne by us are paid by BCSF Advisors, we will generally reimburse BCSF Advisors for such expenses. To the extent the Administrator outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without profit to the Administrator. We may also reimburse the Administrator for its costs and expenses and our allocable portion of overhead incurred by it in performing its obligations under the Administration Agreement, including rent and compensation paid to or compensatory distributions received by our officers (including our Chief Compliance Officer and Chief Financial Officer) and any of their respective staff who provide services to us, operations staff who provide services to us, internal audit staff, if any, to the extent internal audit performs a role in our Sarbanes-Oxley internal control assessment and fees paid to third-party

providers for goods or services. Our allocable portion of overhead will be determined by the Administrator, which expects to use various methodologies such as allocation based on the percentage of time certain individuals devote, on an estimated basis, to our business and affairs, and will be subject to oversight by our Board of Directors (our "Board"). The sub-administrator is paid its compensation for performing its sub-administrative services under the sub-administration agreement. We incurred expenses related to the sub-administrator of $0.8 million, $0.5 million and $0.1 million for the years ended December 31, 2018, 2017 and 2016 respectively, which is included in other general and administrative expenses on the consolidated statements of operations. BCSF Advisors will not be reimbursed to the extent that such reimbursements would cause any distributions to our stockholders to constitute a return of capital. All of the foregoing expenses are ultimately borne by our stockholders.

We may borrow money from time to time. However, our ability to incur indebtedness (including by issuing preferred stock), as of December 31, 2018, is limited by applicable regulations such that our asset coverage, as defined in the 1940 Act, must equal at least 200%. Effective February 2, 2019, following shareholder approval of the reduced asset coverage proposal, the Company may maintain an asset coverage ratio of 150%. See "Subsequent Events". We do not intend to change our primary focus of capitalizing on opportunities within our Senior Direct Lending strategy, which seeks to provide risk-adjusted returns and current income to our stockholders by investing primarily in middle market companies. In determining whether to borrow money, we will analyze the maturity, covenant package and rate structure of the proposed borrowings as well as the risks of such borrowings compared to our investment outlook.

During the year ended December 31, 2018, we invested $1,168.7 million in 110 portfolio companies, including ABCS as a single portfolio company, and had $235.2 million in aggregate amount of principal repayments and sales, resulting in a net increase in investments of $933.5 million for the year.

During the year ended December 31, 2017, we invested $789.6 million in 73 portfolio companies, including ABCS as a single portfolio company, and had $75.6 million in aggregate amount of principal repayments and sales, resulting in a net increase in net investments of $714.0 million for the year.

During the year ended December 31, 2016, we invested $106.6 million in 12 portfolio companies and had $0.3 million in aggregate amount of principal repayments and sales, resulting in a net increase in investments of $106.3 million for the year.

The following table shows the composition of the investment portfolio and associated yield data as of December 31, 2018:

The following table shows the composition of the investment portfolio and associated yield data as of December 31, 2017:

The following table presents certain selected information regarding our investment portfolio as of December 31, 2018:

The following table presents certain selected information regarding our investment portfolio as of December 31, 2017:

The following table shows the amortized cost and fair value of our performing and non-accrual investments as of December 31, 2018:

The following table shows the amortized cost and fair value of our performing and non-accrual investments as of December 31, 2017:

Loans or debt securities are placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest generally is reversed when a loan or debt security is placed on non-accrual status. Interest payments received on non-accrual loans or debt securities may be recognized as income or applied to principal depending upon management's judgment. Non-accrual loans and debt securities are restored to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain current. We may make exceptions to this treatment if the loan has sufficient collateral value and is in the process of collection.

The following table shows the amortized cost and fair value of the investment portfolio, cash and cash equivalents, foreign cash and restricted cash as of December 31, 2018:

The following table shows the amortized cost and fair value of the investment portfolio, cash and cash equivalents and foreign cash as of December 31, 2017:

The following table shows the composition of the investment portfolio by industry, at amortized cost and fair value as of December 31, 2018 (with corresponding percentage of total portfolio investments):

	As of December 31, 2018

	Amortized Cost	Percentage of Total Portfolio		Fair Value	Percentage of Total Portfolio
Investment Vehicles ⁽¹⁾	$ 279,890,772		16.0%	$ 279,362,792		16.2%
High Tech Industries	205,845,620		11.7	202,999,747		11.7
Services: Business	137,816,914		7.9	135,398,202		7.8
Healthcare & Pharmaceuticals	127,104,300		7.3	125,744,586		7.3
Aerospace & Defense	120,069,733		6.8	121,411,334		7.0
Transportation: Cargo	85,197,021		4.9	83,514,319		4.8
Hotel, Gaming & Leisure	81,486,330		4.6	80,683,590		4.7
Consumer Goods: Non-Durable	73,809,233		4.2	71,439,678		4.1
Wholesale	64,529,679		3.7	63,050,944		3.6
Capital Equipment	44,054,103		2.5	42,795,894		2.5
Construction & Building	41,239,595		2.4	41,581,979		2.4
Retail	43,264,007		2.5	41,384,480		2.4
FIRE: Insurance ⁽²⁾	43,288,364		2.5	41,107,152		2.4
Service: Consumer	41,327,064		2.4	41,022,081		2.4
Containers, Packaging & Glass	40,213,180		2.3	38,694,275		2.2
Beverage, Food & Tobacco	38,154,943		2.2	35,612,284		2.1
Energy: Oil & Gas	31,540,815		1.8	31,195,498		1.8
Media: Diversified & Production	30,363,916		1.7	30,490,333		1.8
Automotive	29,482,446		1.7	29,337,032		1.7
Energy: Electricity	22,368,502		1.3	22,283,631		1.3
Forest Products & Paper	22,514,526		1.3	21,902,974		1.3
Media: Broadcasting & Subscription	21,868,277		1.2	20,944,540		1.2
Media: Advertising, Printing & Publishing	19,635,378		1.1	19,730,774		1.1
Chemicals, Plastics & Rubber	19,146,824		1.1	19,511,146		1.1
Consumer Goods: Durable	17,097,312		0.9	17,247,902		1.0
Environmental Industries	16,488,981		0.9	16,482,011		1.0
Telecommunications	15,239,284		0.9	15,121,027		0.9
Banking	13,259,712		0.7	13,234,599		0.8
FIRE: Real Estate ⁽²⁾	10,713,530		0.6	10,650,360		0.6
Utilities: Electric	12,483,046		0.7	10,310,670		0.6
FIRE: Finance ⁽²⁾	3,623,568		0.2	3,559,837		0.2

Total	$ 1,753,116,975		100.0%	$ 1,727,805,671		100.0%

The following table shows the composition of the investment portfolio by industry, at amortized cost and fair value as of December 31, 2017 (with corresponding percentage of total portfolio investments):

	As of December 31, 2017

	Amortized Cost		Percentage of Total Portfolio			Fair Value		Percentage of Total Portfolio
Investment Vehicles ⁽¹⁾	$	178,052,288		21.7	%	$	178,409,807		21.4	%
High Tech Industries		105,919,464		12.9			106,185,758		12.8
Healthcare & Pharmaceuticals		68,318,089		8.3			68,687,910		8.3
Services: Business		60,000,491		7.3			60,598,544		7.3
Aerospace & Defense		44,021,059		5.4			44,898,545		5.4
Beverage, Food & Tobacco		35,301,640		4.3			35,673,127		4.3
Capital Equipment		31,499,131		3.8			32,104,902		3.9
Wholesale		27,025,660		3.3			27,187,662		3.3
Energy: Oil & Gas		26,472,225		3.2			26,957,462		3.2
Containers, Packaging & Glass		25,227,891		3.1			25,329,872		3.0
Automotive		24,194,235		3.0			24,512,807		2.9
Media: Diversified & Production		20,524,304		2.5			21,886,325		2.6
Consumer Goods: Non-Durable		20,925,794		2.6			21,241,067		2.6
Environmental Industries		19,064,227		2.3			20,256,052		2.4
Construction & Building		15,970,504		1.9			17,521,014		2.1
Consumer Goods: Durable		15,105,349		1.8			15,118,365		1.8
Media: Broadcasting & Subscription		14,927,621		1.8			15,019,941		1.8
Retail		14,389,584		1.8			14,416,081		1.7
Telecommunications		13,476,372		1.6			13,778,898		1.7
Insurance		12,192,503		1.5			12,238,811		1.5
Real Estate		10,644,272		1.3			10,863,204		1.3
Transportation: Cargo		10,508,551		1.3			10,734,350		1.3
Chemicals, Plastics & Rubber		8,441,194		1.0			8,996,750		1.1
Utilities: Electric		8,478,000		1.0			8,138,880		1.0
Media: Advertising, Printing & Publishing		5,918,148		0.7			6,020,680		0.7
Hotel, Gaming & Leisure		4,664,328		0.6			4,801,257		0.6
Banking		—		0.0			—		0.0
Transportation: Consumer		—		0.0			—		0.0

Total	$	821,262,924		100.0	%	$	831,578,071		100.0	%

Our Advisor monitors our portfolio companies on an ongoing basis. It monitors the financial trends of each portfolio company to determine if they are meeting their respective business plans and to assess the appropriate course of action for each company. The Advisor has several methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:

Our Advisor rates the investments in our portfolio at least quarterly and it is possible that the rating of a portfolio investment may be reduced or increased over time. For investments rated 3 or 4, Advisor enhances its level of scrutiny over the monitoring of such portfolio company. Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments.

The following table shows the composition of our portfolio on the 1 to 4 rating scale as of December 31, 2018:

The following table shows the composition of our portfolio on the 1 to 4 rating scale as of December 31, 2017:

We have entered into a limited liability company agreement with Antares Midco Inc. ("Antares") to invest in ABC Complete Financing Solution LLC, which makes investments through its subsidiary, Antares Bain Capital Complete Financing Solution LLC (together with ABC Complete Financing Solution LLC, "ABCS"). ABCS, an unconsolidated Delaware limited liability company, was formed on September 27, 2017 and commenced operations on November 29, 2017. ABCS' principal purpose is to make investments, primarily in senior secured unitranche loans. We record our investment in ABCS at fair value. Distributions of income received from ABCS, if any, are recorded as dividend income from controlled investments in the consolidated statements of operations. Distributions received from ABCS in excess of income earned at ABCS, if any, are recorded as a return of capital and reduce the amortized cost of controlled affiliate investments.

We and Antares, as members of ABCS, have agreed to contribute capital up to (subject to the terms of our agreement) $950.0 million in aggregate to purchase equity interests in ABCS, with each member contributing up to $425.0 million and $525.0 million, respectively. Funding of such commitments generally requires the consent of both Antares Credit Opportunities Manager LLC and our Advisor on behalf of Antares and the Company, respectively. ABCS is capitalized with capital contributions from its members on a pro-rata basis based on their maximum capital contributions as transactions are funded after they have been approved.

Investment decisions of ABCS require the consent of both our Advisor and Antares Credit Opportunities Manager LLC, as representatives of us and Antares, respectively. Each of our Advisor and Antares source investments for ABCS. ABCS's affairs are conducted by Antares Credit Opportunities Manager LLC, as manager of ABCS.

The following table shows the ABCS maximum capital contributions, contributions and unfunded capital contributions from its members as of December 31, 2018.

The following table shows the ABCS maximum capital contributions, contributions and unfunded capital contributions from its members as of December 31, 2017.

ABCS entered into a senior credit facility with JP Morgan on November 29, 2017 (the "ABCS Facility"). The ABCS Facility allows ABCS to borrow up to $1.5 billion subject to leverage and borrowing base restrictions. The maturity date of the ABCS Facility is November 29, 2022. As of December 31, 2018 and December 31, 2017, the ABCS Facility had $1,031.2 million and $592.1 million of outstanding debt under the credit facility, respectively. As of December 31, 2018 and December 31, 2017, the effective rate on the ABCS Facility was 5.13% and 4.30% per annum, respectively.

As of December 31, 2018 and December 31, 2017, ABCS held total investments with a fair value of $1,632.5 million and $956.2 million, respectively. As of December 31, 2018 and December 31, 2017, ABCS's portfolio was comprised of senior secured unitranche loans of 22 and 14 different borrowers, respectively. As of December 31, 2018 and December 31, 2017, there were no loans on non-accrual status. The portfolio companies in ABCS are in industries similar to those in which the Company may invest directly. Below is a summary of ABCS's portfolio, followed by a portfolio listing as of December 31, 2018 and December 31, 2017:

Below is certain summarized financial information for ABCS as of and for the year ended December 31, 2018 and as of December 31, 2017 and for the period from November 29, 2017 through December 31, 2017:

ABCS is obligated to pay sourcing fees to the applicable member, or its affiliate, that sources the deal. For the year ended December 31, 2018 and for the period from November 29, 2017 through December 31, 2017 the Company did not earn any sourcing fees.

Portfolio Company		Interest Rate		Principal/ Par Amount		Carrying Value		Fair Value ⁽²⁾

Investments
Corporate Debt
Delayed Draw Term Loan
Chemicals, Plastics & Rubber
PRCC Holdings, Inc.	L+ 6.50%	9.02%	2/1/2021	$	11,878,108	$	11,878,108	$	11,878,108

Total Chemicals, Plastics & Rubber							11,878,108		11,878,108
Consumer Goods: Non-Durable
Solaray, LLC	L+ 5.75%	8.49%	9/9/2023	$	26,680,389		26,387,900		26,546,987
Solaray, LLC ⁽³⁾	-	-	9/9/2023	$	-		-		(33,132	)

Total Consumer Goods: Non-Durable							26,387,900		26,513,855
FIRE: Insurance
Margaux Acquisition Inc. ⁽³⁾	-	-	12/19/2024	$	-		-		(417,349	)

Total FIRE: Insurance							-		(417,349	)
High Tech Industries
Element Buyer, Inc. ⁽³⁾	-	-	7/19/2025	$	-		-		(133,001	)
Element Buyer, Inc.	L+ 5.25%	7.76%	7/19/2025	$	7,600,080		7,473,201		7,543,079

Total High Tech Industries							7,473,201		7,410,078
Media: Advertising, Printing & Publishing
Ansira Holdings, Inc.	L+ 5.75%	8.27%	12/20/2022	$	2,478,122		2,471,720		2,459,537
Ansira Holdings, Inc. ⁽³⁾	-	-	12/20/2022	$	-		-		(56,379	)

Total Media: Advertising, Printing & Publishing							2,471,720		2,403,158
Services: Consumer
McKissock, LLC	L+ 5.75%	8.55%	8/5/2021	$	2,605,055		2,583,309		2,605,055

Total Services: Consumer							2,583,309		2,605,055
Transportation: Consumer
Direct Travel, Inc.	L+ 6.50%	9.12%	12/1/2021	$	1,672,019		1,669,299		1,672,019
Direct Travel, Inc.	-	-	12/1/2021	$	-		-		-

Total Transportation: Consumer							1,669,299		1,672,019

Total Delayed Draw Term Loan						$	52,463,537	$	52,064,924



First lien senior secured loan
Aerospace & Defense
API Technologies Corp.	L+ 5.75%	8.27%	4/20/2024	$	117,860,616		116,559,417		117,565,964

Total Aerospace & Defense							116,559,417		117,565,964
Capital Equipment
Tidel Engineering, L.P.	L+ 6.25%	9.05%	3/1/2024	$	86,441,743		86,415,211		86,441,743

Total Capital Equipment							86,415,211		86,441,743
Chemicals, Plastics & Rubber
AP Plastics Group, LLC	L+ 5.25%	7.60%	8/1/2022	$	48,397,584		48,348,003		47,913,608
PRCC Holdings, Inc.	L+ 6.50%	9.02%	2/1/2021	$	73,813,402		73,813,402		73,813,402

Total Chemicals, Plastics & Rubber							122,161,405		121,727,010
Construction & Building
Profile Products LLC	L+ 5.75%	8.54%	12/20/2024	$	78,832,202		77,613,584		77,255,558

Total Construction & Building							77,613,584		77,255,558
Consumer Goods: Durable
Home Franchise Concepts, Inc.	L+ 5.00%	7.43%	7/9/2024	$	69,090,608		68,773,182		68,399,702
Stanton Carpet Corp. ⁽⁷⁾	L+ 5.50%	8.04%	11/21/2022	$	60,231,137		60,179,302		59,628,826

Total Consumer Goods: Durable							128,952,484		128,028,528
Consumer Goods: Non-Durable
Solaray, LLC	L+ 5.75%	8.49%	9/9/2023	$	96,230,150		95,175,207		95,748,999

Total Consumer Goods: Non-Durable							95,175,207		95,748,999
Energy: Oil & Gas
Amspec Services, Inc.	L+ 5.75%	8.55%	7/2/2024	$	90,025,323		88,985,892		86,874,436

Total Energy: Oil & Gas							88,985,892		86,874,436
FIRE: Insurance
Margaux Acquisition Inc.	L+ 6.00%	8.80%	12/19/2024	$	65,124,823		63,765,565		63,822,327
Margaux UK Finance Limited	GBP LIBOR+ 6.00%	7.00%	12/19/2024	£	17,355,633		21,651,078		21,665,453

Total FIRE: Insurance							85,416,643		85,487,780
High Tech Industries
Caliper Software, Inc.	L+ 5.50%	8.02%	11/28/2025	$	68,181,667		67,508,387		67,158,942
Element Buyer, Inc.	L+ 5.25%	7.78%	7/19/2025	$	85,287,148		83,863,326		84,647,494

Total High Tech Industries							151,371,713		151,806,436


Media: Advertising, Printing & Publishing
Ansira Holdings, Inc.	L+ 5.75%	8.27%	12/20/2022	$	81,011,099		80,874,067		80,403,516
Cruz Bay Publishing, Inc. ⁽⁵⁾	L+ 5.75%	8.30%	6/6/2019	$	11,417,703		11,417,703		11,417,703
Cruz Bay Publishing, Inc. ⁽⁶⁾	L+ 6.75%	9.57%	6/6/2019	$	3,812,900		3,812,900		3,812,900

Total Media: Advertising, Printing & Publishing							96,104,670		95,634,119
Media: Diversified & Production
Efficient Collaborative Retail Marketing Company, LLC	L+ 6.75%	9.55%	6/15/2022	$	22,799,950		22,721,506		22,571,950
Efficient Collaborative Retail Marketing Company, LLC	L+ 6.75%	9.56%	6/15/2022	$	33,741,229		33,241,212		33,403,817

Total Media: Diversified & Production							55,962,718		55,975,767
Retail
Batteries Plus Holding Corporation	L+ 6.75%	9.27%	7/6/2022	$	68,156,203		68,156,203		68,156,203

Total Retail							68,156,203		68,156,203
Services: Business
TEI Holdings Inc.	L+ 6.00%	8.80%	12/20/2023	$	118,589,052		117,725,743		117,403,161

Total Services: Business							117,725,743		117,403,161
Services: Consumer
McKissock, LLC	L+ 5.75%	8.55%	8/5/2021	$	8,071,352		8,003,974		8,071,352
McKissock, LLC	L+ 5.75%	8.55%	8/5/2021	$	42,144,017		41,792,208		42,460,097

Total Services: Consumer							49,796,182		50,531,449
Transportation: Consumer
Direct Travel, Inc.	L+ 6.50%	9.30%	12/1/2021	$	112,153,232		111,788,965		112,153,232

Total Transportation: Consumer							111,788,965		112,153,232

Wholesale
Abracon Group Holding, LLC. ⁽⁴⁾	L+ 5.75%	8.56%	7/18/2024	$	81,496,608		80,367,292		80,681,642
Aramsco, Inc.	L+ 5.25%	7.77%	8/28/2024	$	50,342,871		49,393,889		48,958,442

Total Wholesale							129,761,181		129,640,084

Total First Lien Senior Secured						$	1,581,947,218	$	1,580,430,469



Total Corporate Debt						$	1,634,410,755	$	1,632,495,393



Total Investments						$	1,634,410,755	$	1,632,495,393

Antares Bain Capital Complete Financing Solution

Schedule of Investments
As of December 31, 2017

Portfolio Company					Principal/ Par Amount		Amortized Cost		Fair Value ⁽²⁾

Investments
Corporate Debt
Delayed Draw Term Loan
Capital Equipment
Winchester Electronics Corporation	L + 6.50%	8.17	%	6/30/2022	$	11,294,304	$	11,294,304	$	11,294,304

Total Capital Equipment								11,294,304		11,294,304
Chemicals, Plastics & Rubber
PRCC Holdings, Inc. ⁽⁶⁾	L + 6.50%	8.08	%	2/1/2021	$	12,191,184		12,191,184		12,191,184

Total Chemicals, Plastics & Rubber								12,191,184		12,191,184
Consumer Goods: Non-Durable
Solaray, LLC	L + 6.50%	8.07	%	9/9/2023	$	15,496,531		15,496,531		15,496,531

Total Consumer Goods: Non-Durable								15,496,531		15,496,531
Media: Advertising, Printing & Publishing
Ansira Holdings, Inc.	L + 6.50%	8.19	%	12/20/2022	$	6,228,599		6,228,599		6,228,599

Total Media: Advertising, Printing & Publishing								6,228,599		6,228,599
Services: Business
McKissock, LLC	L + 6.00%	7.94	%	8/5/2019	$	2,631,338		2,631,338		2,631,338

Total Services: Business								2,631,338		2,631,338
Transportation: Consumer
Direct Travel, Inc.	L + 6.50%	8.01	%	12/1/2021	$	7,654,382		7,654,382		7,654,382

Total Transportation: Consumer								7,654,382		7,654,382

Total Delayed Draw Term Loan							$	55,496,338	$	55,496,338



First Lien Senior Secured Loan
Banking
Tidel Engineering, L.P.	L + 6.25%	7.94	%	3/1/2024	$	80,924,185		80,924,185		80,924,185

Total Banking								80,924,185		80,924,185
Capital Equipment
Winchester Electronics Corporation	L + 6.50%	8.19	%	6/30/2022	$	75,343,060		75,272,510		75,272,510

Total Capital Equipment								75,272,510		75,272,510
Chemicals, Plastics & Rubber
AP Plastics Group, LLC ⁽³⁾	L + 6.25%	7.63	%	8/1/2022	$	50,972,104		50,972,104		50,972,104
PRCC Holdings, Inc. ⁽⁵⁾	L + 6.50%	8.08	%	2/1/2021	$	75,780,714		75,780,714		75,780,714

Total Chemicals, Plastics & Rubber								126,752,818		126,752,818
Construction & Building
Stanton Carpet Corp. ⁽⁷⁾	L + 6.50%	8.07	%	11/21/2022	$	65,131,658		65,131,658		65,131,658

Total Construction & Building								65,131,658		65,131,658
Consumer Goods: Non-Durable
Solaray, LLC	L + 6.50%	8.00	%	9/9/2023	$	86,461,350		86,179,604		86,179,604

Total Consumer Goods: Non-Durable								86,179,604		86,179,604
Media: Advertising, Printing & Publishing
Ansira Holdings, Inc.	L + 6.50%	8.19	%	12/20/2022	$	76,608,806		76,608,806		76,608,806
Cruz Bay Publishing, Inc.	L + 5.75%	7.13	%	6/6/2019	$	12,170,869		12,170,869		12,170,869
Cruz Bay Publishing, Inc. ⁽⁴⁾	L + 6.75%	8.47	%	6/6/2019	$	4,064,416		4,064,416		4,064,416

Total Media: Advertising, Printing & Publishing								92,844,091		92,844,091
Media: Diversified & Production
Efficient Collaborative Retail Marketing Company, LLC	L + 6.75%	8.44	%	6/15/2022	$	35,840,087		35,840,087		35,840,087

Total Media: Diversified & Production								35,840,087		35,840,087
Retail
Batteries Plus Holding Corporation	L + 6.50%	8.32	%	7/6/2022	$	68,677,806		68,677,806		68,677,806

Total Retail								68,677,806		68,677,806
Services: Business
McKissock, LLC	L + 6.00%	7.94	%	8/5/2019	$	8,152,786		8,152,786		8,152,786
McKissock, LLC	L + 6.00%	7.94	%	8/5/2019	$	17,100,285		17,100,285		17,100,285
TEI Holdings Inc. ⁽⁸⁾	L + 6.50%	8.13	%	12/20/2023	$	74,173,614		74,173,614		74,173,614

Total Services: Business								99,426,685		99,426,685
Transportation: Cargo
ENC Holding Corporation	L + 6.50%	8.05	%	2/8/2023	$	71,062,151		71,062,151		71,062,151

Total Transportation: Cargo								71,062,151		71,062,151

Our operating results for the years ended December 31, 2018, 2017 and 2016 were as follows:

Net increase in net assets resulting from operations can vary from period to period as a result of various factors, including additional financing, new investment commitments, the recognition of realized gains and losses and changes in unrealized appreciation and depreciation on the investment portfolio. Due to these factors, comparisons may not be meaningful.

Interest income from investments, which includes interest and accretion of discounts and fees, increased to $73.4 million for the year ended December 31, 2018 from $24.4 million for the year ended December 31, 2017, primarily due to the growth of our investment portfolio. Our investment portfolio at amortized cost increased to $1,753.1 million from $821.3 million for the years ended December 31, 2018 and 2017, respectively. Dividend income increased to $25.4 million for the year ended December 31, 2018, primarily due to the growth in our joint venture, ABCS. As of December 31, 2018, the weighted average yield of our investment portfolio increased to 8.7% from 8.2% as of December 31, 2017. Interest income from investments, which includes interest and accretion of discounts and fees, increased to $24.4 million for the year ended December 31, 2017 from $0.9 million for the year ended December 31, 2016, primarily due to the growth of our investment portfolio. Our investment portfolio at amortized cost increased to $821.3 million from $106.3 million for the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017, the weighted average yield of our investment portfolio increased to 8.2% from 6.3% as of December 31, 2016.

The Company commenced investment operations on October 13, 2016. We did not start earning interest from investments, which includes income from accretion of discounts, amortization of premiums and origination fees, until October 2016.

The composition of our operating expenses for the years ended December 31, 2018, 2017 and 2016 were as follows:

Interest and debt financing expenses on our borrowings totaled approximately $24.0 million and $3.6 million for the years ended December 31, 2018 and 2017, respectively. Interest and debt financing expense for the year ended December 31, 2018 as compared to December 31, 2017, increased primarily due to higher principal balances outstanding of our revolving credit facilities, the issuance of our 2018-1 Notes, and an increase in the average LIBOR rate. Our SMBC Revolving Credit Facility was terminated on November 21, 2018.

Interest and debt financing expenses on our borrowings totaled approximately $3.6 million and $0.0 million for the years ended December 31, 2017 and 2016, respectively. Interest and debt financing expense for the year ended December 31, 2017 as compared to December 31, 2016, increased primarily due to higher principal balances outstanding of our revolving credit facilities.

The weighted average interest rate (excluding deferred upfront financing costs and unused fees) on our debt outstanding was 4.31% and 3.40% as of December 31, 2018 and 2017, respectively.

Management fee (net of waivers) increased to $8.8 million for the year ended December 31, 2018 from $2.9 million for the year ended December 31, 2017. Management fees increased to $17.5 million for the year ended December 31, 2018 from $5.9 million for the year ended December 31, 2017, primarily due to an increase in assets to $1.8 billion as of December 31, 2018 from $1.0 billion as of December 31, 2017.

Management fees waived for the years ended December 31, 2018 and 2017, were $8.8 million and $2.9 million, respectively.

Management fee (net of waivers) increased to $2.9 million for the year ended December 31, 2017 from $0.2 million for the year ended December 31, 2016. Management fees increased to $5.9 million for the year ended December 31, 2017 from $0.4 million for the year ended December 31, 2017, primarily due to an increase in assets to $1.0 billion as of December 31, 2017 from $176.9 million as of December 31, 2016. Management fees waived for the years ended December 31, 2017 and 2016, were $2.9 million and $0.2 million, respectively.

Incentive fee (net of waivers) increased to $6.8 million for the year ended December 31, 2018 from $0.8 million for the year ended December 31, 2017. Incentive Fee waivers related to pre-Incentive fee net investment income consisted of voluntary waivers of $1.7 million for the year ended December 31, 2018 and $0.0 million for December 31, 2017. For the year ended December 31, 2018 there was a reduction of $1.0 million in incentive fees related to the GAAP incentive fee, which is included in incentive fees on the consolidated statements of operations.

Incentive fee (net of waivers) increased to $0.8 million for the year ended December 31, 2017 from $0.3 million for the year ended December 31, 2016. There were no incentive fee waivers related to pre-Incentive fee net investment income for the year ended December 31, 2017.

Incentive fee (net of waivers) was $0.3 million for the year ended December 31, 2016. There were no incentive fee waivers related to pre-Incentive fee net investment income for the year ended December 31, 2016.

Professional fees and other general and administrative expenses increased to $3.8 million for the year ended December 31, 2018 from $2.7 million for the year ended December 31, 2017, due to an increase in costs associated with servicing our investment portfolio.

Professional fees and other general and administrative expenses increased to $2.7 million for the year ended December 31, 2017 from $1.4 million for the year ended December 31, 2016, due to an increase in costs associated with servicing our investment portfolio.

The following table summarizes our net realized and unrealized gains (losses) for the years ended December 31, 2018, 2017, and 2016:

For the years ended December 31, 2018, and 2017, we had net realized gains (losses) on investments of ($3.3) million and $0.1 million, respectively. For the years ended December 31, 2018, and 2017, we had net realized gains (losses) on foreign currency transactions of ($0.5) million and $0.1 million, respectively. For the years ended December 31, 2017 and 2016, we had net realized losses on forward currency contracts of $2.7 million and $0.2 million, respectively, primarily as a result of settling GBP and EUR forward contracts.

For the year ended December 31, 2018, we had $4.2 million in unrealized appreciation on 24 portfolio company investments, which was offset by $39.8 million in unrealized depreciation on 108 portfolio company investments. Unrealized depreciation for the year ended December 31, 2018 resulted from a decrease in fair value, primarily due to reversal of prior period unrealized appreciation and widening credit spreads.

For the year ended December 31, 2017, we had $10.4 million in unrealized appreciation on 52 portfolio company investments, which was offset by $1.8 million in unrealized depreciation on 20 portfolio company investments. Unrealized appreciation for the year ended December 31, 2017 resulted from an increase in fair value, primarily due to positive valuation adjustments.

For the years ended December 31, 2018 and 2017, we had unrealized appreciation (depreciation) on forward currency exchange contracts of $12.8 million and ($3.5) million, respectively. For the year ended December 31, 2018, unrealized appreciation on forward currency exchange contracts was due to

EUR, GBP, DKK, NOK and AUD forward contracts. For the year ended December 31, 2017, unrealized depreciation on forward currency exchange contracts was due to EUR and GBP forward contracts.

The following table summarizes the impact of foreign currency for the years ended December 31, 2018, 2017, and 2016:

Included in total net gains (losses) on the consolidated statements of operations is net gains (losses) of ($7.9) million, $4.2 million and $0.0 million related to realized and unrealized gains and losses on investments, foreign currency holdings and non-investment assets and liabilities attributable to the changes in foreign currency exchange rates for the years ended December 31, 2018, 2017 and 2016, respectively. Including the total net realized and unrealized gains (losses) on forward currency exchange contracts of $10.2 million, ($3.7) million and $0.0 million, respectively, included in the above table, the net impact of foreign currency on total net gains (losses) on the consolidated statements of operations is $2.3 million, $0.4 million and $0.0 million for the years ended December 31, 2018, 2017 and 2016, respectively.

For the years ended December 31, 2018, 2017 and 2016, the net increase in net assets resulting from operations was $26.6 million, $19.3 million and $0.6 million, respectively. Based on the weighted average shares of common stock outstanding for the years ended December 31, 2018, 2017 and 2016, our per share net increase in net assets resulting from operations was $0.69, $0.99, and $0.51, respectively.

Our liquidity and capital resources are derived primarily from proceeds from equity issuances, advances from our credit facilities, 2018-1 Notes, and cash flows from operations. The primary uses of our cash are for (1) investments in portfolio companies and other investments and to comply with certain portfolio diversification requirements; (2) the cost of operations (including payments to the Advisor under the Investment Advisory and Administration Agreements); (3) debt service, repayment, and other financing costs; and, (4) cash distributions to the holders of our common shares.

We intend to continue to generate cash primarily from cash flows from operations, future borrowings and future offerings of securities. We may from time to time enter into additional debt facilities, increase the size of existing facilities or issue debt securities. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. We are required to meet an asset coverage ratio, defined under the 1940 Act as the ratio of our total assets (less all liabilities and indebtedness not represented by senior securities) to our outstanding senior securities, of at least 200% after each issuance of senior securities. As of December 31, 2018 and 2017, our asset coverage ratio was 257% and 212%, respectively.

At December 31, 2018 and December 31, 2017, we had $33.3 million and $140.9 million in cash, foreign cash, restricted cash and cash equivalents, respectively.

At December 31, 2018 we had approximately $228.7 million of availability on our BCSF Revolving Credit Facility, subject to existing terms and regulatory requirements. At December 31, 2017, we had approximately $199.0 million of availability on our BCSF Revolving Credit Facility and $0.0 million of availability on our SMBC Revolving Credit Facility subject to existing terms and regulatory requirements.

For the year ended December 31, 2018, cash, foreign cash, restricted cash, and cash equivalents decreased by $107.6 million. During the year ended December 31, 2018, we used $774.2 million in cash for operating activities, primarily to purchase investments of $1,064.3 million, offset by a net increase in net assets resulting from operations of $26.6 million, proceeds from principal payments and sales of investments of $236.1 million, and net change in unrealized activity of ($22.8) million. During the year ended December 31, 2018, we generated $667.1 million from financing activities, primarily from borrowings on our SMBC Revolving Credit Facility and our BCSF Revolving Credit Facility, together referred to as the "Revolving Credit Facilities", of $453.0 million, issuance of our 2018-1 Notes of $365.7 million and the issuance of common stock of $524.3 million, offset by repayments on our Revolving Credit Facilities of $632.7 million and distributions paid during the year of $41.0 million.

For the year ended December 31, 2017, cash, foreign cash and cash equivalents increased by $74.2 million. During the year ended December 31, 2017, we used $697.4 million in cash for operating activities, primarily to purchases investments of $781.2, offset by a net increase in net assets resulting from operations of $19.3 million and proceeds from principal payments and sales of investments of $73.1 million. During the year ended December 31, 2017, we generated $770.9 million from financing activities, primarily from borrowings on our Revolving Credit Facilities of $545.9 million and the issuance of common stock of $392.7 million, offset by repayments on our Revolving Credit Facilities of $154.6 million.

For the year ended December 31, 2016, cash increased by $66.7 million. During the year ended December 31, 2017, we used $100.8 million in cash for operating activities, primarily to purchase investments of $100.3 million. During the year ended December 31, 2016, we generated $167.5 million from financing activities, primarily borrowings on revolving credit facilities of $59.1 million and from the issuance of common stock of $109.8 million.

Prior to the IPO, the Company entered into Subscription Agreements with investors providing for the private placement of our common shares. Under the terms of the Subscription Agreements, investors were required to fund drawdowns to purchase our common shares up to the amount of their respective capital commitments on an as-needed basis with a minimum of 10 business days' prior notice. As of December 31, 2018 and December 31, 2017, we had received capital commitments of $1.3 billion, of which $10.8 million was from our Advisor.

During the year ended December 31, 2018, pursuant to the Subscription Agreements, we delivered capital drawdown notices to our investors relating to the issuance of 6,163,522.89 shares of our common stock at $20.35 per share for an aggregate offering of $125.4 million, 6,160,339.16 shares of our common stock at $20.38 per share for an aggregate offering of $125.5 million and 6,245,548.12 shares of our common stock at $20.17 per share for an aggregate offering of $126.0 million. During the year ended December 31, 2018, we received additional capital commitments of $950,000. During the year ended December 31, 2017, we received additional capital commitments of $708.7 million, and pursuant to the Subscription Agreements, we delivered capital drawdown notices to our investors relating to the issuance of 5,430,375.07 of shares of our common stock at $20.10 for an aggregate offering of $109.2 million, 5,850,854.57 shares of our common stock at $20.23 per share for an aggregate offering of $118.4 million and 8,131,000.10 shares of our common stock at $20.32 per share for an aggregate offering of $165.2 million. During the year ended December 31, 2016, pursuant to the Subscription Agreements, we have delivered capital drawdown notices to our investors relating to the issuance of 5,490,882.30 of our common shares for an aggregate offering of $109.8 million. Proceeds from the issuance were used to fund our investing activities and for other general corporate purposes.

On November 19, 2018, we closed our initial public offering (the "IPO") issuing 7,500,000 shares of its common stock at a public offering price of $20.25 per share. Shares of common stock of the Company began trading on the New York Stock Exchange under the symbol "BCSF" on November 15, 2018. The offering generated net proceeds, before expenses, of $145.4 million. All outstanding capital commitments from the Company's Private Offering, were cancelled as of the completion of the IPO.

BCSF Investments, LLC and certain individuals, adopted the 10b5-1 Plan in accordance with Rules 10b5-1 and 10b-18 under the Exchange Act, under which such parties will buy up to $20 million in the aggregate of our common stock in the open market during the period beginning after four full calendar weeks after the closing of the IPO and ending on the earlier of the date on which the capital committed to the 10b5-1 has been exhausted or one year after the closing of the IPO. For the year ended December 31, 2018, 265,754 shares have been purchased under the 10b5-1 Plan at a weighted average price of $16.76, inclusive of commissions, for a total cost of $4.5 million.

During the year ended December 31, 2018, we issued 436,914.94 shares of our common stock to investors who have opted into our dividend reinvestment plan. During the year ended December 31, 2017, we issued 72,700.50 shares of our common stock to investors who have opted into our dividend reinvestment plan. During the year ended December 31, 2016, we did not issue any shares of our common stock to investors who have opted into our dividend reinvestment plan.

On November 21, 2018, the SMBC Revolving Credit Facility was terminated. The proceeds from the initial public offering on November 15, 2018, were used to repay the total outstanding debt. As of December 31, 2018, the SMBC Revolving Credit Facility was terminated. As of December 31, 2017, we had $150.0 million outstanding on the SMBC Revolving Credit Facility and we were in compliance with the terms of the SMBC Revolving Credit Facility.

For the years ended December 31, 2018, 2017 and 2016, the components of interest expense related to the SMBC Revolving Credit Facility were as follows:

and consolidated subsidiary of the Company, as borrower, and Goldman Sachs Bank USA, as sole lead arranger ("Goldman Sachs"). The BCSF Revolving Credit Facility was subsequently amended on May 15, 2018 to reflect certain clarifications regarding margin requirements and hedging currencies. The maximum commitment amount under the BCSF Revolving Credit Facility is $500.0 million, and may be increased up to $750.0 million. Proceeds of the loans under the BCSF Revolving Credit Facility may be used to acquire certain qualifying loans and such other uses as permitted under the BCSF Revolving Credit Facility. The BCSF Revolving Credit Facility includes customary affirmative and negative covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature. As of December 31, 2018, we were in compliance with these covenants.

As of December 31, 2018 and December 31, 2017 there were $271.3 million and $301.0 million borrowings under the BCSF Revolving Credit Facility, respectively and we were in compliance with the terms of the BCSF Revolving Credit Facility.

For the years ended December 31, 2018, 2017 and 2016, the components of interest expense related to the BCSF Revolving Credit Facility were as follows:

On September 28, 2018, (the "2018-1 Closing Date"), we, through BCC Middle Market CLO 2018-1 LLC (the "2018-1 Issuer"), a Delaware limited liability company and a wholly owned and consolidated subsidiary of us, completed its $451.2 million term debt securitization (the "CLO Transaction"). The notes issued in connection with the CLO Transaction (the "2018-1 Notes") are secured by a diversified portfolio of the 2018-1 Issuer consisting primarily of middle market loans and participation interests in middle market loans, the majority of which are senior secured loans (the "2018-1 Portfolio"). At the 2018-1 Closing Date, the 2018-1 Portfolio was comprised of assets transferred from the Company and its consolidated subsidiaries. All transfers were eliminated in consolidation and there were no realized gains or losses recognized in the CLO Transaction.

The CLO Transaction was executed through a private placement of the following 2018-1 Notes:

The Class A-1 A, A-1 B, A-2, B and C 2018-1 Notes were issued at par and are scheduled to mature on October 20, 2030. The Company received 100% of the membership interests (the "Membership Interests") in the 2018-1 Issuer in exchange for its sale to the 2018-1 Issuer of the initial closing date loan portfolio. The Membership Interests do not bear interest.

The Class A-1 A, A-1 B, A-2, B and C 2018-1 Notes are included in the consolidated financial statements. The Membership Interests are eliminated in consolidation.

The Company serves as portfolio manager of the 2018-1 Issuer pursuant to a portfolio management agreement between the Company and the 2018-1 Issuer. For so long as the Company serves as portfolio manager, the Company will not charge any management fee or subordinated interest to which it may be entitled.

During the reinvestment period (four years from the closing date of the CLO Transaction), pursuant to the indenture governing the 2018-1 Notes, all principal collections received on the underlying collateral may be used by the 2018-1 Issuer to purchase new collateral under the direction of the Company in its capacity as portfolio manager of the 2018-1 Issuer and in accordance with the 2018-1 Issuer's investment strategy and the terms of the indenture.

The Company has agreed to hold on an ongoing basis the Membership Interests with an aggregate dollar purchase price of at least equal to 5% of the aggregate amount of all obligations issued by the 2018-1 Issuer for so long as the 2018-1 Notes remain outstanding.

The 2018-1 Issuer pays ongoing administrative expenses to the trustee, independent accountants, legal counsel, rating agencies and independent managers in connection with developing and maintaining reports, and providing required services in connection with the administration of the 2018-1 Issuer.

As of December 31, 2018, there were 75 first lien and second lien senior secured loans with a total fair value of approximately $437.2 million and cash of $18.0 million securing the 2018-1 Notes. Such assets are included in the Company's consolidated financial statements. The creditors of the 2018-1 Issuer have received security interests in such assets and such assets are not intended to be available to the creditors of the Company (or an affiliate of the Company). The 2018-1 Portfolio must meet certain requirements, including asset mix and concentration, term, agency rating, collateral coverage, minimum coupon, minimum spread and sector diversity requirements in the indenture governing the 2018-1 Notes. As of December 31, 2018, the Company was in compliance with its covenants related to the 2018-1 Notes.

Costs of $2.1 million were incurred in connection with debt securitization of the 2018-1 Notes by the 2018-1 Issuer which have been recorded as debt issuance costs and presented as a reduction to the outstanding principal amount of the 2018-1 Notes on the consolidated statements of assets and liabilities and are being amortized over the life of the 2018-1 Issuer using the effective interest method. The balance of the unamortized deferred financing costs related to the 2018-1 Issuer was $2.0 million as of December 31, 2018. The 2018-1 Issuer was not in existence as of December 31, 2017 and December 31, 2016 and the 2018-1 Notes were not outstanding.

For the years ended December 31, 2018, 2017 and 2016, the components of interest expense related to the 2018-1 Issuer were as follows:

The following table summarizes distributions declared during the years ended December 31, 2018, 2017, and 2016:

Distributions to common stockholders are recorded on the record date. To the extent that we have income available, we intend to distribute quarterly distributions to our stockholders. Our quarterly distributions, if any, will be determined by the Board. Any distributions to our stockholders will be declared out of assets legally available for distribution.

We have elected to be treated, and intend to operate in a manner so as to continuously qualify, as, a regulated investment company (a "RIC) under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), beginning with our taxable year ended December 31, 2016. To qualify for and maintain RIC tax treatment, among other things, we must distribute dividends to our stockholders in respect of each taxable year of an amount generally at least equal to 90% of the sum of our net ordinary income and net short-term capital gains in excess of our net long-term capital losses. In order to avoid the imposition of certain excise taxes imposed on RICs, we must distribute dividends to our stockholders in respect of each calendar year of an amount at least equal to the sum of: (1) 98% of our net ordinary income (taking into account certain deferrals and elections) for such calendar year; (2) 98.2% of our

capital gains in excess of capital losses, adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of such calendar year; and (3) the sum of any net ordinary income plus capital gains net income for preceding years that were not distributed during such years and on which we paid no federal income tax.

We intend to distribute net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually out of the assets legally available for such distributions. However, we may decide in the future to retain all or a portion of our net capital gains for investment, incur a corporate-level tax on such capital gains, and elect to treat such capital gains as deemed distributions to our stockholders.

We have adopted a dividend reinvestment plan that provides for the reinvestment of cash dividends and distributions. Prior to the IPO, stockholders who "opted in" to our dividend reinvestment plan had their cash dividends and distributions automatically reinvested in additional shares of our common stock, rather than receiving cash dividends and distributions. Subsequent to the IPO, stockholders who do not "opt out" of our dividend reinvestment plan will have their cash dividends and distributions automatically reinvested in additional shares of our common stock, rather than receiving cash dividends and distributions. Stockholders could elect to "opt in" or "opt out" of our dividend reinvestment plan in their subscription agreements, through the private offering. The elections of stockholders that make an election prior to the IPO shall remain effective after the IPO.

The U.S. federal income tax characterization of distributions declared and paid for the fiscal year will be determined at fiscal year-end based upon our investment company taxable income for the full fiscal year and distributions paid during the full year.

We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to fund investments and to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized on the statements of assets and liabilities.

As of December 31, 2018, the Company had $110.2 million of unfunded commitments under loan and financing agreements as follows:

	Expiration Date ⁽¹⁾	Unfunded Commitments ⁽²⁾ ⁽³⁾

First Lien Senior Secured Loans
Abracon Group Holding, LLC — Revolver	7/18/2024	$	2,833,400
Aimbridge Hospitality LP — Revolver	6/22/2022		1,176,500
AMCP Clean Acquisition Company, LLC — Delayed Draw Term Loan	6/16/2025		2,315,428
Amspec Services, Inc. — Revolver	7/2/2024		4,735,302
Ansira Holdings, Inc. — Revolver	12/20/2022		5,440,128
AP Plastics Group, LLC — Revolver	8/1/2021		8,500,200
API Technologies Corp. — Revolver	4/22/2024		4,183,169
Aramsco, Inc. — Revolver	8/28/2024		3,161,012
Batteries Plus Holding Corporation — Revolver	7/6/2022		4,250,100
Caliper Corporation — Revolver	11/30/2023		2,358,241
Captain D's LLC — Revolver	12/15/2023		1,073,909
Chase Industries, Inc. — Delayed Draw Term Loan	5/12/2025		3,544,365
Clinical Innovations, LLC — Revolver	10/17/2022		1,113,333
CMI Marketing Inc. — Revolver	5/24/2023		2,112,000
Cruz Bay Publishing, Inc. — Revolver	6/6/2019		566,680
CST Buyer Company — Revolver	3/1/2023		897,478
Datix Bidco Limited — Revolver	10/28/2024		1,239,500
Direct Travel, Inc. — Revolver	12/1/2021		4,250,100
Dorner Manufacturing Corp. — Revolver	3/15/2022		1,043,939
Drilling Info Holdings, Inc. — Delayed Draw Term Loan	7/30/2025		1,662,801
Efficient Collaborative Retail Marketing Company, LLC — Revolver	6/15/2022		3,541,750
Element Buyer, Inc. — Revolver	7/19/2024		4,250,100
ENC Holding Corporation — Delayed Draw Term Loan	5/30/2025		595,376
FineLine Technologies, Inc. — Revolver	11/2/2021		2,162,097
Grammer Purchaser, Inc. — Revolver	9/30/2024		945,000
Great Expressions Dental Centers PC — Revolver	9/28/2022		213,394
Home Franchise Concepts, Inc. — Revolver	7/9/2024		2,529,821
Horizon Telcom, Inc. — Delayed Draw Term Loan	6/15/2023		1,737,931
Horizon Telcom, Inc. — Revolver	6/15/2023		1,158,621
Margaux UK Finance — Revolver	12/19/2024		635,927
Margaux Acquisition Inc. — Revolver	12/19/2024		2,256,950
McKissock, LLC — Revolver	8/5/2021		1,841,710
PRCC Holdings, Inc. — Revolver	2/1/2021		3,541,750
Profile Products LLC — Revolver	12/20/2024		3,833,424
Solaray, LLC — Revolver	9/9/2022		7,083,500
Sovos Compliance, LLC — Delayed Draw Term Loan	3/1/2022		870,968
Sovos Compliance, LLC — Revolver	3/1/2022		1,451,615
Stanton Carpet Corp. — Revolver	11/21/2022		4,250,100
TEI Holdings Inc. — Revolver	12/20/2022		3,541,750
Tidel Engineering, L.P. — Revolver	3/1/2023		4,250,100
Zywave, Inc. — Revolver	11/17/2022		511,647

Total First Lien Senior Secured Loans		$	107,661,116

Other Unfunded Commitments
BCC Jetstream Holdings Aviation (On II), LLC			2,561,470

Total Other Unfunded Commitments		$	2,561,470

Total		$	110,222,586

As of December 31, 2017, the Company had $111.3 million of unfunded commitments under loan and financing agreements as follows:

	Expiration Date ⁽¹⁾	Unfunded Commitments ⁽²⁾ ⁽³⁾

First Lien Senior Secured Loans
Ansira Holdings, Inc. — Revolver	12/20/2022	$	7,083,500
AP Plastics Group, LLC — Revolver	8/1/2021		7,565,178
Batteries Plus Holding Corporation — Revolver	7/6/2022		4,250,100
Captain D's LLC — Revolver	12/15/2023		843,289
Clinical Innovations, LLC — Revolver	10/17/2022		998,161
Cruz Bay Publishing, Inc. — Revolver	6/6/2019		2,266,720
CST Buyer Company — Revolver	3/1/2023		897,478
Direct Travel, Inc. — Revolver	12/1/2021		4,250,100
Dorner Manufacturing Corp. — Revolver	3/15/2023		659,330
Efficient Collaborative Retail Marketing Company, LLC — Revolver	6/15/2022		3,541,750
ENC Holding Corporation — Revolver	2/8/2023		9,811,825
Endries International, Inc. — Delayed Draw Term Loan	6/1/2023		3,278,355
Endries International, Inc. — Revolver	6/1/2022		2,576,787
FineLine Technologies, Inc. — Revolver	11/2/2021		2,620,724
Great Expressions Dental Centers PC — Delayed Draw Term Loan	9/28/2023		667,000
Great Expressions Dental Centers PC — Revolver	9/28/2022		183,386
International Entertainment Investments Limited — Delayed Draw Term Loan	2/28/2022		558,414
K-Mac Holdings Corp. — Revolver	12/20/2021		1,440,000
Lakeland Tours, LLC — Delayed Draw Term Loan	12/8/2024		186,596
McKissock, LLC — Revolver	8/5/2019		2,125,050
PRCC Holdings, Inc. — Revolver	2/1/2021		3,541,750
Solaray, LLC — Revolver	9/9/2022		8,500,200
Sovos Compliance, LLC — Delayed Draw Term Loan	3/1/2022		4,838,710
Sovos Compliance, LLC — Revolver	3/1/2022		1,451,615
Stanton Carpet Corp. — Revolver	11/21/2022		4,250,100
TEI Holdings Inc. — Revolver	12/20/2022		4,250,100
Tidel Engineering, L.P. — Revolver	3/1/2023		5,666,800
Winchester Electronics Corporation — Revolver	6/30/2021		4,250,100
Zywave, Inc. — Revolver	11/17/2022		991,316

Total First Lien Senior Secured Loans		$	93,544,434

Second Lien Senior Secured Loans
NPC International, Inc. — Delayed Draw Term Loan	4/18/2025		8,000,716

Total Second Lien Senior Secured Loans		$	8,000,716

Other Unfunded Commitments
BCC Jetstream Holdings Aviation (On II), LLC			9,735,064

Total Other Unfunded Commitments		$	9,735,064

Total		$	111,280,214

The Company's consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The Company's consolidated financial statements and related financial information have been prepared pursuant to the requirements for reporting on Form 10-K and Article 6 of Regulation S-X. We have determined we meet the definition of an investment company and follow the accounting and reporting guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946 — Financial Services — Investment Companies ("ASC 946"). Our financial currency is U.S. dollars and these consolidated financial statements have been prepared in that currency.

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and such differences could be material.

We record our investment transactions on a trade date basis. We record realized gains and losses based on the specific identification method. We record interest income, adjusted for amortization of premium and accretion of discount, on an accrual basis. Discount and premium to par value on investments acquired are accreted and amortized, respectively, into interest income over the life of the respective investment using the effective interest method. Loan origination fees, original issue discount and market discount or premium are capitalized and amortized into or against interest income using the effective interest method or straight-line method, as applicable. We record any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts received upon prepayment of a loan or debt security as interest income.

Dividend income on preferred equity investments is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity investments is recorded on the record date for such distributions in the case of private portfolio companies, and on the ex-dividend date for publicly traded portfolio companies. Distributions received from a limited liability company or limited partnership investment are evaluated to determine if the distribution should be recorded as dividend income or a return of capital.

Certain investments may have contractual PIK interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. We record PIK as interest or dividend income, as applicable. If at any point we believe PIK may not be realized, we place the investment generating PIK on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are generally reversed through interest or dividend income, as applicable.

Certain structuring fees and amendment fees are recorded as other income when earned. We record administrative agent fees received as other income when the services are rendered.

Investments for which market quotations are readily available are typically valued at such market quotations. Market quotations are obtained from an independent pricing service, where available. If we cannot obtain a price from an independent pricing service or if the independent pricing service is not deemed to be representative with the market, we value certain investments held by us on the basis of prices provided by principal market makers. Generally investments marked in this manner will be marked at the mean of the bid and ask of the independent broker quotes obtained, in some cases, primarily illiquid securities, multiple quotes may not be available and the mid of the bid/ask from one broker will be used. To validate market quotations, we utilize a number of factors to determine if the quotations are representative of fair value, including the source and number of quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value, subject at all times to the oversight and approval of the Board, based on the input of our Advisor, our Audit Committee and one or more independent third party valuation firms engaged by our Board.

With respect to unquoted securities, we value each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we use the pricing indicated by the external event to corroborate and/or assist us in our valuation. 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 differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

With respect to investments for which market quotations are not readily available, the Advisor will undertake a multi-step valuation process, which includes among other things, the below:

determine the fair value and their analysis and calculations to support their conclusion. We determine the fair value of its investment in ABCS giving consideration to the assets and liabilities of ABCS, at fair value, including consideration of any necessary adjustments. We conduct this valuation process on a quarterly basis.

In March 2017, the FASB issued ASU 2017-08, "Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. This new guidance is effective for fiscal years beginning after December 15, 2018, as well as for interim periods within those fiscal years. Early adoption is permitted. We do not believe these changes will have a material impact on our consolidated financial statements and disclosures.

In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 is part of the disclosure framework project and eliminates certain disclosure requirements for fair value measurements, requires entities to disclose new information, and modifies existing disclosure requirements. The new guidance is effective after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact this change will have on our consolidated financial statements and disclosures.

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification (the "SEC Release"), amending certain disclosure requirements intended to facilitate the disclosure of information to investors and simplify compliance. The effective date for the SEC Release is effective for all filings on or after November 5, 2018. The Company adopted the SEC Release for the fiscal year ended December 31, 2018. The SEC Release required presentation changes to the Company's consolidated statements of assets and liabilities and consolidated statements of changes in net assets. Prior to adoption, the Company presented, in accordance with previous SEC rules, distributable earnings on the consolidated statements of assets and liabilities, as three components: 1) accumulated undistributed net investment income; 2) net unrealized appreciation (depreciation); and 3) accumulated undistributed net realized gain (loss) and presented distributions from distributable earnings on the consolidated statements of changes in net assets as distributions from net investment income. In accordance with the SEC Release, distributable earnings and distributions from distributable earnings are shown in total on the consolidated statements of assets and liabilities and consolidated statements of changes in net assets, respectively. The changes in presentation have been retrospectively applied to the consolidated statements of changes in net assets and the consolidated statement of assets and liabilities for the year ended December 31, 2017.

We have entered into an Investment Advisory Agreement with our Advisor. Our Advisor has agreed to serve as our investment adviser in accordance with the terms of the Investment Advisory Agreement. Under the Investment Advisory Agreement, we have agreed to pay an annual base management fee as well as an incentive fee based on our investment performance.

On October 11, 2018, the Board approved, subject to completion of the IPO, an Amended and Restated Investment Advisory Agreement. Beginning with the calendar quarter that commences January 1, 2019, this Amended and Restated Investment Advisory Agreement incorporates (i) a three-year lookback provision and (ii) a cap on quarterly income incentive fee payments based on net realized or unrealized capital loss, if any, during the applicable three-year lookback period.

Effective February 1, 2019, following stockholder approval of the advisory agreement approval, the management fee will be calculated using a tiered management fee structure. See "Subsequent Events".

We have entered into an Administration Agreement with the Administrator pursuant to which the Administrator will furnish us with administrative services necessary to conduct our day-to-day operations. We reimburse the Administrator for its costs and expenses and our allocable portion of overhead incurred by it in performing its obligations under the Administration Agreement, including compensation paid to or compensatory distributions received by our officers (including our Chief Compliance Officer and Chief Financial Officer) and any of their respective staff who provide services to us, operations staff who provide services to us, and internal audit staff, if any, to the extent internal audit performs a role in our Sarbanes-Oxley internal control assessment.

If any of our contractual obligations discussed above are terminated, our costs may increase under any new agreements that we enter into as replacements. We would also likely incur expenses in locating alternative parties to provide the services we expect to receive under our Investment Advisory Agreement and Administration Agreement.

A summary of the maturities of our principal amounts of debt and other contractual payment obligations as of December 31, 2018 are as follows:

Subsequent events after the consolidated statements of assets and liabilities date have been evaluated through the date the consolidated financial statements were issued. Other than the items discussed below, the Company has concluded that there is no impact requiring adjustment or disclosure in the consolidated financial statements.

On November 28, 2018, the Board approved the reduction of the Company's asset coverage requirements in Section 61(a)(2) of the 1940 Act to 150% and recommended the stockholders to vote in favor of the proposal at the special stockholder meeting on February 1, 2019. On February 1, 2019, the Company's stockholders approved the application of the reduced asset coverage. Effective February 2, 2019, the Company is permitted to borrow amounts such that its asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required.

Effective February 1, 2019, the base management fee of 1.5% (0.375% per quarter) of the average value of the Company's gross assets (excluding cash and cash equivalents, but including assets purchased with borrowed amounts) will continue to apply to assets held at an asset coverage ratio of 200%, but a lower base management fee of 1.0% (0.25% per quarter) of the average value of the Company's gross assets (excluding cash and cash equivalents, but including assets purchased with borrowed amounts) will apply to any amount of assets attributable to leverage decreasing the Company's asset coverage ratio below 200%.

On February 19, 2019, the Company entered into a credit and security agreement (the "Credit Agreement") with the Company as Equityholder and Servicer, BCSF II-C, LLC as Borrower, Citibank, N.A., as Administrative Agent, and Wells Fargo Bank, National Association as Collateral Administrator, Collateral Agent and Custodian. The Credit Agreement is effective as of February 19, 2019.

The facility amount under the Credit Agreement is $350,000,000. Proceeds of the loans under the Credit Agreement may be used to acquire certain qualifying loans and such other uses as permitted under the Credit Agreement. The period from the closing date until February 19, 2020 is referred to as the reinvestment period and during such reinvestment period, the Borrower may request drawdowns under the Credit Agreement. During the period prior to the last day of the reinvestment period, borrowings under the Credit Agreement will bear interest at a rate equal to the three-month London Interbank Offered Rate ("LIBOR") plus 1.60%.Commencing on the last day of the reinvestment period, the interest rate on borrowings under the Credit Agreement will reset to three month LIBOR plus 2.60% for the remaining term of the Credit Agreement.

The final maturity date is the earliest of: (a) the business day designated by the Borrower as the final maturity date upon not less than three business days' prior written notice to the Administrative Agent, the Collateral Agent, the Lenders, the Custodian and the Collateral Administrator, (b) February 19, 2022 and (c) the date on which the Administrative Agent provides notice of the declaration of the final maturity date after the occurrence of an event of default.

The Credit Agreement includes customary affirmative and negative covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature.

As of February 28, 2019, zero dollars remain under the 10b5-1 Plan and no further purchases are intended under the 10b5-1 Plan.

We are subject to financial market risks, including changes in interest rates. We will generally invest in illiquid loans and securities including debt and equity securities of middle-market companies. Because we expect that there will not be a readily available market for many of the investments in our portfolio, we expect to value many of our portfolio investments at fair value as determined in good faith by the Board using a documented valuation policy and a consistently applied valuation process. 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 differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

Assuming that the statement of financial condition as of December 31, 2018 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates.

From time to time, we may make investments that are denominated in a foreign currency. These investments are translated into U.S. dollars at the balance sheet date, exposing us to movements in foreign exchange rates. We may employ hedging techniques to minimize these risks, but we cannot assure you that such strategies will be effective or without risk to us. We may seek to utilize instruments such as, but not limited to, forward contracts to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates.

Our consolidated financial statements and supplementary data are annexed to this Annual Report beginning on page 126.

To the Board of Directors and Shareholders of Bain Capital Specialty Finance, Inc.

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Bain Capital Specialty Finance, Inc. and its subsidiaries (the "Company") as of December 31, 2018 and 2017, and the related statements of operations, changes in net assets and cash flows for each of the three years in the period ended December 31, 2018, including the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations, changes in its net assets and its cash flows for each of the three years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. 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 audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 and 2017 by correspondence with the custodians, agent banks, and portfolio company investees; when replies were not received, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.

Bain Capital Specialty Finance, Inc.

Consolidated Statements of Assets and Liabilities

	As of		As of

	December 31, 2018		December 31, 2017
Assets
Investments at fair value:
Non-controlled/non-affiliate investments (amortized cost of $1,449,749,445 and $633,645,701, respectively)	$	1,422,837,431	$	643,067,956
Controlled affiliate investment (amortized cost of $296,647,530 and $187,617,223, respectively)		298,248,240		188,510,115
Non-controlled/affiliate investment (amortized cost of $6,720,000 and $0, respectively)		6,720,000		-
Cash and cash equivalents		14,692,877		139,506,289
Foreign cash (cost of $588,622 and $1,383,845, respectively)		591,113		1,411,855
Restricted Cash		17,986,541		-
Collateral on forward currency exchange contracts		3,790		4,421,968
Deferred financing costs		4,017,802		5,808,726
Interest receivable on investments		6,250,621		2,888,847
Prepaid insurance		1,517		137,785
Receivable for sales and paydowns of investments		1,633,739		2,497,769
Unrealized appreciation on forward currency exchange contracts		9,321,758		-
Dividend receivable		8,708,670		-

Total Assets	$	1,791,014,099	$	988,251,310



Liabilities
Revolving credit facilities	$	271,264,902	$	451,000,000
2018-1 Notes (net of unamortized debt issuance costs of $2,040,320 and $0, respectively)		363,659,680		-
Offering costs payable		1,819,892		-
Interest payable		4,835,339		815,402
Payable for investments purchased		119,165,882		14,814,984
Unrealized depreciation on forward currency exchange contracts		-		3,504,814
Base management fee payable		2,950,412		1,244,033
Incentive fee payable		3,300,398		1,017,919
Accounts payable and accrued expenses		1,280,770		1,143,946
Excise tax payable		-		4,882
Distributions payable		21,107,677		7,742,502

Total Liabilities		789,384,952		481,288,482

Commitments and Contingencies (See Note 11)
Net Assets
Preferred stock, $0.001 par value per share, 10,000,000,000 shares authorized, none issued and outstanding as of December 31, 2018 and December 31, 2017, respectively	$	-	$	-
Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized, 51,482,137 and 24,975,812 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively		51,482		24,976
Paid in capital in excess of par value		1,034,255,352		503,533,321
Total distributable earnings (loss)		(32,677,687)		3,404,531

Total Net Assets		1,001,629,147		506,962,828

Total Liabilities and Total Net assets	$	1,791,014,099	$	988,251,310



Net asset value per share	$	19.46	$	20.30

	For the Year Ended December 31,			For the Year Ended December 31,			For the Year Ended December 31,

	2018			2017			2016
Income
Investment income from non-controlled/non-affiliate investments:
Interest from investments	$	73,049,110		$	24,380,362		$	868,550
Other income		545,248			128,848			-

Total investment income from non-controlled/non-affiliate investments		73,594,358			24,509,210			868,550
Investment income from controlled affiliate investments:
Interest from investments		313,543			55,308			-
Other income		29			40,616			-
Dividend income		25,386,052			-			-

Total investment income from controlled affiliate investments		25,699,624			95,924			-

Total investment income		99,293,982			24,605,134			868,550

Expenses
Interest and debt financing expenses	$	24,011,185		$	3,614,734		$	27,015
Amortization of deferred offering costs		-			329,995			91,152
Base management fee		17,543,592			5,898,018			356,408
Incentive fee		8,670,069			764,343			253,576
Organizational costs		-			-			797,593
Professional fees		2,638,941			1,776,863			301,997
Directors fees		278,182			275,461			137,732
Other general and administrative expenses		900,969			685,524			162,815

Total expenses before fee waivers		54,042,938			13,344,938			2,128,288
Base management fee waiver		(8,771,796	)		(2,949,009	)		(178,204	)
Incentive fee waiver		(1,907,861	)		-			-

Total expenses, net of fee waivers		43,363,281			10,395,929			1,950,084

Net investment income (loss) before taxes		55,930,701			14,209,205			(1,081,534	)

Excise tax expense		309			4,882			-

Net investment income (loss) after taxes		55,930,392			14,204,323			(1,081,534	)

Net realized and unrealized gains (losses)
Net realized gain (loss) on non-controlled/non-affiliate investments		(3,344,720	)		54,404			-
Net realized gain (loss) on foreign currency transactions		(489,296	)		115,025			-
Net realized loss on forward currency exchange contracts		(2,651,412	)		(221,928	)		-
Net change in unrealized appreciation on foreign currency translation		109			28,294			-
Net change in unrealized appreciation (depreciation) on forward currency exchange contracts		12,826,572			(3,504,814	)		-
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliate investments		(36,334,269	)		7,731,746			1,690,509
Net change in unrealized appreciation on controlled affiliate investments		707,818			892,892			-

Total net gains (losses)		(29,285,198	)		5,095,619			1,690,509

Net increase in net assets resulting from operations	$	26,645,194		$	19,299,942		$	608,975



Per Common Share Data
Basic and diluted net investment income per common share	$	1.45		$	0.73		$	(0.90	)
Basic and diluted increase in net assets resulting from operations per common share	$	0.69		$	0.99		$	0.51
Basic and diluted weighted average common shares outstanding		38,567,001			19,548,037			1,200,974

Bain Capital Specialty Finance, Inc.

Consolidated Statements of Changes in Net Assets

	For the Year Ended December 31,			For the Year Ended December 31,			For the Year Ended December 31,

	2018			2017			2016
Cash flows from operating activities
Net increase in net assets resulting from operations	$	26,645,194		$	19,299,942		$	608,975
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments		(1,064,335,143	)		(781,182,745	)		(100,305,376	)
Proceeds from principal payments and sales of investments		236,105,199			73,111,740			347,781
Net realized (gain) loss from investments		3,344,720			(54,404	)		-
Net realized (gain) loss on foreign currency transactions		489,296			(115,025	)		-
Net change in unrealized (appreciation) depreciation on forward currency exchange contracts		(12,826,572	)		3,504,814			-
Net change in unrealized (appreciation) depreciation on investments		35,626,451			(8,624,638	)		(1,690,509	)
Net change in unrealized appreciation on foreign currency translation		(109	)		(28,294	)		-
(Accretion) of discounts and amortization of premiums, net		(1,756,281	)		(814,568	)		(47,852	)
Amortization of deferred financing costs and debt issuance costs		1,835,416			742,025			9,023
Amortization of deferred offering costs		-			329,995			91,152
Changes in operating assets and liabilities:
Collateral on forward currency exchange contracts		4,418,178			(4,421,968	)		-
Interest receivable on investments		(3,361,774	)		(2,292,683	)		(596,164	)
Prepaid insurance		136,268			2,090			(139,875	)
Dividend receivable		(8,708,670	)		-			-
Other assets		-			5,723			(5,723	)
Interest payable		4,019,937			797,410			17,992
Base management fee payable		1,706,379			1,065,829			178,204
Incentive fee payable		2,282,479			764,343			253,576
Accounts payable and accrued expenses		136,824			531,721			512,992
Excise tax payable		(4,882	)		4,882			-

Net cash used in operating activities		(774,247,090	)		(697,373,811	)		(100,765,804	)

Cash flows from financing activities
Borrowings on revolving credit facilities		453,000,000			545,899,918			59,100,000
Repayments on revolving credit facilities		(632,735,098	)		(154,563,966	)		-
Issuance of 2018-1 Notes		365,700,000			-			-
Payments of financing costs		-			(5,462,000	)		(1,097,774	)
Payments of offering costs		(89,518	)		-			(321,914	)
Payments of debt issuance costs		(2,084,812	)		-			-
Proceeds from issuance of common stock		524,266,868			392,735,221			109,817,646
Stockholder distributions paid		(40,971,158	)		(7,756,454	)		-

Net cash provided by financing activities		667,086,282			770,852,719			167,497,958

Net increase (decrease) in cash, foreign cash, restricted cash and cash equivalents		(107,160,808	)		73,478,908			66,732,154
Effect of foreign currency exchange rates		(486,805	)		707,082			-
Cash, foreign cash, restricted cash and cash equivalents, beginning of year		140,918,144			66,732,154			-

Cash, foreign cash, restricted cash and cash equivalents, end of year	$	33,270,531		$	140,918,144		$	66,732,154



Supplemental disclosure of cash flow information:
Cash interest paid during the year	$	18,155,832		$	2,075,299		$	-
Cash paid for excise taxes during the year	$	5,191		$	-		$	-
Supplemental disclosure of non-cash information:
Reinvestment of stockholder distributions	$	8,832,170		$	1,475,620		$	-

Portfolio Company ⁽⁴⁾	Spread Above Index ⁽¹⁾				Principal/ Par Amount/ Shares ⁽⁹⁾		Amortized Cost			Fair Value

Investments and Cash Equivalents 172.6%
Investments 172.5%
Non-Controlled/Non-Affiliate Investments 142.0%
Corporate Fixed Income 3.5%
Corporate Bond 3.5%
Beverage, Food & Tobacco 0.8%
Hearthside Food Solutions, LLC	-	8.50	%	6/1/2026	$	10,000,000	$	9,793,446		$	8,000,000

Total Beverage, Food & Tobacco								9,793,446			8,000,000
Consumer Goods: Non-Durable 0.8%
Kronos Acquisition Holdings Inc.	-	9.00	%	8/15/2023	$	10,000,000		9,356,074			7,700,000

Total Consumer Goods: Non-Durable								9,356,074			7,700,000
Containers, Packaging & Glass 0.9%
BWAY Holding Company	-	7.25	%	4/15/2025	$	10,000,000		9,755,474			9,012,500

Total Containers, Packaging & Glass								9,755,474			9,012,500
Utilities: Electric 1.0%
CSVC Acquisition Corp	-	7.75	%	6/15/2025	$	13,478,000	$	12,483,046		$	10,310,670

Total Utilities: Electric								12,483,046			10,310,670

Total Corporate Bond							$	41,388,040		$	35,023,170

Total Corporate Fixed Income							$	41,388,040		$	35,023,170



Corporate Debt 137.8%
Delayed Draw Term Loan 0.5%
Construction & Building 0.0%
Chase Industries, Inc. ^{(3) (15)} ⁽²¹⁾	L+ 4.00%	6.82	%	5/12/2025	$	199,183		181,857			169,235

Total Construction & Building								181,857			169,235
High Tech Industries 0.0%
Drilling Info Holdings, Inc ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	-	-		7/30/2025	$	-		(7,201	)		(13,302	)

Total High Tech Industries								(7,201	)		(13,302	)
Services: Business 0.5%
AMCP Clean Acquisition Company, LLC ⁽³⁾ ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 4.25%	6.93	%	6/16/2025	$	1,489,192		1,482,756			1,432,122
Sovos Compliance, LLC ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 6.00%	8.52	%	3/1/2022	$	3,957,823		3,957,823			3,909,535

Total Services: Business								5,440,579			5,341,657
Telecommunications 0.0%
Horizon Telcom, Inc. ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ^{(12) (15)} ⁽¹⁹⁾ ⁽²¹⁾	-	-		6/15/2023	$	-		(19,383	)		(26,069	)

Total Telecommunications								(19,383	)		(26,069	)
Transportation: Cargo 0.0%
ENC Holding Corporation ⁽²⁾ ⁽³⁾ ^{(5) (18)}	-	-		5/30/2025	$	-		(831	)		(8,931	)

Transportation: Cargo	-	-		-		-		(831	)		(8,931	)

Total Delayed Draw Term Loan							$	5,595,021		$	5,462,590



First Lien Last Out Term Loan 2.7%
Environmental Industries 1.6%
Adler & Allan Group Limited ⁽⁶⁾ ⁽¹⁷⁾ ⁽¹⁹⁾ ⁽²¹⁾ ⁽²²⁾	GBP LIBOR+ 8.25% (2% PIK)	9.14	%	9/30/2022	£	13,061,742		16,488,981			16,482,011

Total Environmental Industries								16,488,981			16,482,011
Healthcare & Pharmaceuticals 1.1%
Clinical Innovations, LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾ ⁽²²⁾	L+ 5.50%	8.02	%	10/17/2023	$	11,027,744		10,817,411			10,972,605

Total Healthcare & Pharmaceuticals								10,817,411			10,972,605

Total First Lien Last Out Term Loan							$	27,306,392		$	27,454,616



First Lien Senior Secured Loan 103.2%
Aerospace & Defense 5.5%
Forming & Machining Industries Inc. ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 4.25%	6.85	%	10/9/2025	$	14,937,269		14,863,280			14,713,210
Novetta, LLC ⁽¹²⁾ ⁽¹⁵⁾	L+ 5.00%	7.53	%	10/17/2022	$	3,814,708		3,750,386			3,738,414
Salient CRGT, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 5.75%	8.27	%	2/28/2022	$	13,086,496		13,155,083			12,890,199
StandardAero Aviation Holdings, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.75%	6.27	%	7/7/2022	$	19,770,921		19,869,616			19,583,097
WP CPP Holdings, LLC. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.75%	6.28	%	4/30/2025	$	4,715,025		4,704,012			4,561,787

Total Aerospace & Defense								56,342,377			55,486,707
Automotive 2.3%
CST Buyer Company ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 5.00%	7.52	%	3/1/2023	$	9,309,556		9,208,345			9,309,556
OEConnection LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 4.00%	6.53	%	11/22/2024	$	14,078,908		14,009,520			13,762,133

Total Automotive								23,217,865			23,071,689
Banking 1.3%
Transaction Network Services, Inc. ⁽¹⁵⁾ ⁽²¹⁾	L+ 4.00%	6.71	%	8/14/2022	$	13,393,649		13,259,712			13,234,599

Total Banking								13,259,712			13,234,599


Beverage, Food & Tobacco 2.1%
GOBP Holdings, Inc. ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 3.75%	6.55	%	10/22/2025	$	16,632,463	16,621,045	16,216,651
NPC International, Inc. ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.50%	6.02	%	4/19/2024	$	4,987,342	5,020,452	4,675,633

Total Beverage, Food & Tobacco							21,641,497	20,892,284
Capital Equipment 2.8%
Dorner Manufacturing Corp. ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 5.75%	8.55	%	3/15/2023	$	7,985,580	7,878,378	7,985,580
DXP Enterprises, Inc. ⁽⁶⁾ ⁽¹²⁾ ⁽¹⁵⁾	L+ 4.75%	7.27	%	8/29/2023	$	5,177,916	5,133,782	5,158,499
Wilsonart LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.25%	6.06	%	12/19/2023	$	15,393,418	15,438,069	14,777,681

Total Capital Equipment							28,450,229	27,921,760
Chemicals, Plastics & Rubber 1.9%
ASP Chromaflo Intermediate Holdings, Inc. ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.50%	6.02	%	11/20/2023	$	504,839	503,053	493,480
ASP Chromaflo Intermediate Holdings, Inc. ⁽⁶⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.50%	6.02	%	11/20/2023	$	656,452	654,129	641,681
Niacet b.v. ⁽⁶⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	EURIBOR+ 4.50%	5.50	%	2/1/2024	€	3,777,239	4,044,191	4,304,065
Niacet Corporation ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 4.50%	7.02	%	2/1/2024	$	2,172,611	2,155,584	2,161,748
Plaskolite, Inc. ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.25%	6.69	%	12/15/2025	$	12,030,477	11,789,867	11,910,172

Total Chemicals, Plastics & Rubber							19,146,824	19,511,146
Construction & Building 4.0%
Bolt Infrastructure Merger Sub, Inc. ⁽¹²⁾ ⁽¹⁵⁾	L+ 3.50%	6.02	%	6/21/2024	$	2,670,423	2,661,781	2,617,014
Chase Industries, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 4.00%	6.61	%	5/11/2025	$	11,921,048	11,862,535	11,825,679
Crown Subsea ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 6.00%	8.35	%	11/2/2025	$	13,400,000	13,201,050	12,931,000
Regan Development Holdings Limited ⁽⁶⁾ ⁽¹⁷⁾ ⁽¹⁹⁾	EURIBOR+ 7.00%	7.50	%	4/18/2022	€	2,556,609	2,785,426	2,927,829
Regan Development Holdings Limited ⁽⁶⁾ ⁽¹⁷⁾ ⁽¹⁹⁾	EURIBOR+ 7.00%	7.50	%	4/18/2022	€	7,759,873	8,329,888	8,886,607
Regan Development Holdings Limited ⁽⁶⁾ ⁽¹⁷⁾ ⁽¹⁹⁾	EURIBOR+ 7.00%	7.50	%	4/18/2022	€	828,924	941,409	949,283

Total Construction & Building							39,782,089	40,137,412
Consumer Goods: Durable 1.7%
New Milani Group LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.25%	6.77	%	6/6/2024	$	17,273,200	17,113,611	17,273,200

Total Consumer Goods: Durable							17,113,611	17,273,200
Consumer Goods: Non-Durable 5.8%
FineLine Technologies, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.25%	7.06	%	11/2/2022	$	31,703,107	31,465,508	31,544,591
Kronos Acquisition Holdings Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 4.00%	6.52	%	5/15/2023	$	13,181,476	13,142,079	12,522,403
MND Holdings III Corp ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 3.50%	6.30	%	6/19/2024	$	13,766,864	13,815,431	13,560,361

Total Consumer Goods: Non-Durable							58,423,018	57,627,355
Containers, Packaging & Glass 3.0%
BWAY Holding Company ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 3.25%	5.66	%	4/3/2024	$	12,812,406	12,836,361	12,099,716
Technimark LLC ⁽¹²⁾ ⁽¹⁸⁾	L+ 3.75%	6.27	%	8/8/2025	$	2,826,456	2,823,098	2,784,059
Terminator Bidco AS ^{(6) (18)} ⁽¹⁹⁾ ⁽²¹⁾	L+ 5.00%	7.80	%	5/22/2022	$	15,100,000	14,798,247	14,798,000

Total Containers, Packaging & Glass							30,457,706	29,681,775
Energy: Electricity 2.0%
Infinite Electronics International Inc. ⁽¹²⁾ ⁽¹⁸⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.00%	6.52	%	7/2/2025	$	19,952,996	19,938,102	19,853,231

Total Energy: Electricity							19,938,102	19,853,231
Energy: Oil & Gas 3.0%
Blackbrush Oil & Gas, L.P. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 8.00%	10.89	%	2/9/2024	$	31,200,000	30,674,839	30,264,000

Total Energy: Oil & Gas							30,674,839	30,264,000
FIRE: Finance 0.4%
Badger Merger Sub, Inc. ⁽¹²⁾ ⁽¹⁸⁾	L+ 3.75%	6.54	%	9/12/2025	$	3,641,777	3,623,568	3,559,837

Total FIRE: Finance							3,623,568	3,559,837
FIRE: Insurance 2.8%
Alliant Holdings Intermediate, LLC ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 2.75%	5.21	%	5/9/2025	$	16,598,005	16,650,414	15,734,908
Wink Holdco, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.00%	5.52	%	12/2/2024	$	12,567,792	12,514,187	11,939,402

Total FIRE: Insurance							29,164,601	27,674,310
FIRE: Real Estate 1.1%
Spectre (Carrisbrook House) Limited ⁽⁶⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	EURIBOR+ 7.50%	8.50	%	8/9/2021	€	9,300,000	10,713,530	10,650,360

Total FIRE: Real Estate							10,713,530	10,650,360
Forest Products & Paper 0.7%
Solenis International LLC ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 4.00%	6.80	%	6/26/2025	$	7,334,513	7,279,504	7,082,389

Total Forest Products & Paper							7,279,504	7,082,389
Healthcare & Pharmaceuticals 3.1%
Datix Bidco Limited ⁽⁶⁾ ⁽¹⁹⁾ ⁽²¹⁾	BBSW+ 4.50%	6.57	%	4/28/2025		AUD 4,211,615	3,197,488	2,921,747
Drive DeVilbiss ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 5.50%	8.30	%	1/3/2023	$	8,528,844	7,867,168	7,398,772
Great Expressions Dental Centers PC ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 4.75%	7.63	%	9/28/2023	$	7,982,265	7,893,662	7,862,531
Island Medical Management Holdings, LLC ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 6.50%	9.02	%	9/1/2022	$	9,267,544	9,157,984	8,618,816
U.S. Anesthesia Partners, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.00%	5.52	%	6/24/2024	$	4,641,369	4,572,533	4,458,035

Total Healthcare & Pharmaceuticals							32,688,835	31,259,901
High Tech Industries 17.2%
CMI Marketing Inc ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.75%	7.27	%	5/24/2024	$	15,410,560	15,271,043	15,410,560
Drilling Info Holdings, Inc ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 4.25%	6.77	%	7/30/2025	$	20,178,083	20,094,063	20,102,415
Elo Touch Solutions, Inc. ⁽¹⁸⁾ ⁽²¹⁾	L+ 6.50%	9.28	%	12/7/2025	$	18,942,743	17,995,606	18,256,069
Lighthouse Network, LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.50%	7.03	%	12/2/2024	$	16,088,382	16,023,630	16,007,940
Netsmart Technologies, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.75%	6.27	%	4/19/2023	$	21,622,636	21,657,213	21,352,353
Park Place Technologies ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 4.00%	6.52	%	3/31/2025	$	10,324,227	10,293,367	10,117,743
Qlik Technologies ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.50%	5.94	%	4/26/2024	$	22,724,748	22,666,315	22,014,599
SolarWinds Holdings, Inc. ⁽¹⁸⁾ ⁽²¹⁾	L+ 2.75%	5.27	%	2/5/2024	$	14,763,095	14,844,760	14,227,933
VPARK BIDCO AB ⁽⁶⁾ ⁽¹⁶⁾ ⁽¹⁹⁾ ⁽²¹⁾	CIBOR+ 5.00%	5.75	%	3/8/2025	DKK	56,999,385	9,134,484	8,742,907
VPARK BIDCO AB ⁽⁶⁾ ⁽¹⁶⁾ ⁽¹⁹⁾ ⁽²¹⁾	NIBOR+ 5.00%	6.28	%	3/8/2025	NOK	74,019,870	9,174,183	8,557,804
Zywave, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 5.00%	7.52	%	11/17/2022	$	17,549,498	17,457,898	17,549,498

Total High Tech Industries							174,612,562	172,339,821


Hotel, Gaming & Leisure 6.2%
Aimbridge Hospitality LP ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 5.00%	7.52	%	6/22/2022	$	25,584,242		25,250,600			25,584,242
Aimbridge Hospitality LP ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 5.00%	7.52	%	6/22/2022	$	4,264,055		4,206,019			4,264,055
Captain D's LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.50%	7.30	%	12/15/2023	$	13,388,719		13,269,421			13,154,417
Quidditch Acquisition, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 7.00%	9.47	%	3/21/2025	$	15,903,406		15,859,074			15,823,889
Tacala Investment Corp. ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 3.25%	5.77	%	1/31/2025	$	3,503,871		3,450,624			3,383,425

Total Hotel, Gaming & Leisure								62,035,738			62,210,028
Media: Advertising, Printing & Publishing 1.2%
Cambium Learning Group, Inc. ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 4.50%	7.02	%	12/18/2025	$	12,325,321		11,709,055			11,770,682

Total Media: Advertising, Printing & Publishing								11,709,055			11,770,682
Media: Broadcasting & Subscription 2.1%
Micro Holding Corp. ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 3.75%	6.25	%	9/13/2024	$	21,931,455		21,868,277			20,944,540

Total Media: Broadcasting & Subscription								21,868,277			20,944,540
Media: Diversified & Production 3.0%
Getty Images, Inc. ⁽²¹⁾ ⁽²⁶⁾	L+ 3.50%	6.02	%	10/18/2019	$	19,946,950		19,743,947			19,419,772
International Entertainment Investments Limited ⁽⁶⁾ ⁽¹⁸⁾ ⁽¹⁹⁾ ⁽²¹⁾	GBP LIBOR+ 4.75%	5.65	%	5/31/2023	£	8,685,518		10,619,969			11,070,561

Total Media: Diversified & Production								30,363,916			30,490,333
Retail 2.7%
CH Hold Corp. ⁽¹²⁾ ⁽¹⁵⁾	L+ 3.00%	5.52	%	2/1/2024	$	1,498,382		1,496,191			1,485,271
CVS Holdings I, LP ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 2.75%	5.28	%	2/6/2025	$	14,912,375		14,892,976			14,166,756
Eyemart Express LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.00%	5.46	%	8/5/2024	$	11,505,683		11,544,208			11,189,277

Total Retail								27,933,375			26,841,304
Services: Business 12.9%
Advantage Sales & Marketing Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.25%	5.77	%	7/23/2021	$	15,743,193		15,500,361			13,972,084
AMCP Clean Acquisition Company, LLC ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 4.25%	7.05	%	6/16/2025	$	15,773,321		15,724,960			15,536,721
Comet Bidco Limited ⁽⁶⁾ ⁽¹⁸⁾ ⁽²¹⁾	GBP LIBOR+ 5.25%	5.98	%	9/30/2024	£	10,260,870		13,080,675			12,718,845
Lakeland Tours, LLC ⁽¹²⁾ ⁽¹⁵⁾	L+ 4.00%	6.79	%	12/16/2024	$	2,887,182		2,878,034			2,820,416
LegalZoom.com, Inc. ⁽¹⁸⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.50%	7.00	%	11/21/2024	$	15,838,640		15,735,468			15,601,060
New Insight Holdings, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 5.50%	8.02	%	12/20/2024	$	20,529,017		20,041,341			20,349,388
Sovos Compliance, LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 6.00%	8.52	%	3/1/2022	$	8,600,804		8,540,782			8,514,796
Valet Waste Holdings, Inc ⁽¹²⁾ ⁽¹⁸⁾ ⁽²¹⁾	L+ 4.00%	6.52	%	9/29/2025	$	28,761,340		28,686,319			28,401,823
XO Management Holding Inc. ⁽¹⁸⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 5.75%	8.49	%	12/4/2021	$	12,354,923		11,490,079			11,490,079

Total Services: Business								131,678,019			129,405,212
Services: Consumer 2.9%
GI Chill Acquisition LLC ⁽¹²⁾ ⁽¹⁸⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.00%	6.80	%	8/6/2025	$	11,463,557		11,441,001			11,463,557
Travel Leaders Group, LLC ⁽¹²⁾ ⁽¹⁸⁾	L+ 4.00%	6.46	%	1/25/2024	$	527,968		526,724			524,008
Trident LS Merger Sub Corp ⁽¹²⁾ ⁽¹⁸⁾	L+ 3.00%	5.52	%	5/1/2025	$	4,185,675		4,177,322			4,101,962
WeddingWire, Inc. ⁽¹⁸⁾ ⁽²¹⁾	L+ 4.50%	7.29	%	12/19/2025	$	13,217,871		13,250,531			13,019,602

Total Services: Consumer								29,395,578			29,109,129
Telecommunications 1.4%
Horizon Telcom, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.50%	6.85	%	6/15/2023	$	13,868,690		13,711,631			13,660,659
Masergy Holdings, Inc. ⁽¹⁵⁾ ⁽²¹⁾	L+ 3.25%	6.05	%	12/15/2023	$	686,114		683,713			663,816

Total Telecommunications								14,395,344			14,324,475
Transportation: Cargo 4.1%
ENC Holding Corporation ⁽¹²⁾ ⁽¹⁸⁾ ⁽²⁷⁾	L+ 4.00%	6.80	%	5/30/2025	$	9,774,591		9,760,848			9,627,972
Grammer Purchaser, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 4.75%	7.27	%	9/30/2024	$	10,500,000		10,332,000			10,342,500
PS HoldCo, LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 4.75%	7.28	%	3/13/2025	$	21,458,545		21,457,647			20,922,082

Total Transportation: Cargo								41,550,495			40,892,554
Wholesale 6.0%
PetroChoice Holdings, Inc. ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 5.00%	7.53	%	8/22/2022	$	3,638,290		3,603,010			3,601,907
PT Holdings, LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 4.00%	6.80	%	12/9/2024	$	21,671,240		21,630,543			21,183,638
Specialty Building Products Holdings, LLC ⁽¹²⁾ ⁽¹⁸⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 5.75%	8.27	%	10/1/2025	$	16,944,043		16,841,132			16,435,721
SRS Distribution Inc. ⁽¹⁸⁾ ⁽²¹⁾	L+ 3.25%	5.77	%	5/23/2025	$	20,000,000		19,505,319			18,725,000

Total Wholesale								61,580,004			59,946,266

Total First Lien Senior Secured Loan							$	1,049,040,270		$	1,033,456,299



Revolver 1.6%
Aerospace & Defense 0.0%
API Technologies Corp. ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		4/22/2024	$	-		(46,293	)		(10,458	)

Total Aerospace & Defense								(46,293	)		(10,458	)
Automotive 0.0%
CST Buyer Company ⁽³⁾ ⁽⁵⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		3/1/2023	$	-		(9,348	)		-

Total Automotive								(9,348	)		-
Capital Equipment 0.0%
Dorner Manufacturing Corp. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	P+ 4.75%	10.00	%	3/15/2022	$	54,944		37,262			54,944
Tidel Engineering, L.P. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		3/1/2023	$	-		-			-

Total Capital Equipment								37,262			54,944
Chemicals, Plastics & Rubber 0.0%
AP Plastics Group, LLC ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		8/1/2021	$	-		-			-
PRCC Holdings, Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		2/1/2021	$	-		-			-

Total Chemicals, Plastics & Rubber								-			-
Construction & Building 0.0%
Profile Products LLC ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		12/20/2024	$	-		(76,251	)		(76,668	)

Total Construction & Building								(76,251	)		(76,668	)


Consumer Goods: Durable 0.0%
Home Franchise Concepts, Inc. ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		7/9/2024	$	-		(16,299	)		(25,298	)
Stanton Carpet Corp. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		11/21/2022	$	-		-			-

Total Consumer Goods: Durable								(16,299	)		(25,298	)
Consumer Goods: Non-Durable 0.6%
FineLine Technologies, Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 4.25%	6.79	%	11/2/2021	$	458,627		425,135			445,523
Solaray, LLC ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²³⁾	L+ 4.50%	7.69	%	9/9/2022	$	5,666,800		5,605,006			5,666,800

Total Consumer Goods: Non-Durable								6,030,141			6,112,323
Energy: Oil & Gas 0.1%
Amspec Services, Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	P+ 3.75%	9.25	%	7/2/2024	$	931,498		865,976			931,498

Total Energy: Oil & Gas								865,976			931,498
FIRE: Insurance 0.0%
Margaux Acquisition, Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	P+ 5.00%	10.50	%	12/19/2024	$	615,532		558,428			558,082
Margaux UK Finance Limited ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ⁽⁶⁾ ⁽¹⁹⁾	-	-		12/19/2024	£	-		(12,551	)		(12,719	)

Total FIRE: Insurance								545,877			545,363
Healthcare & Pharmaceuticals 0.1%
Clinical Innovations, LLC ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²²⁾	L+ 5.50%	7.93	%	10/17/2022	$	38,391		18,735			32,632
Datix Bidco Limited ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ^{(6) (18)} ⁽¹⁹⁾	-	-		10/28/2024	£	-		(25,173	)		(18,593	)
Great Expressions Dental Centers PC ⁽³⁾ ⁽¹³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 4.75%	8.70	%	9/28/2022	$	953,606		942,612			936,101

Total Healthcare & Pharmaceuticals								936,174			950,140
High Tech Industries 0.1%
Caliper Software, Inc. ⁽³⁾ ⁽¹⁸⁾ ⁽¹⁹⁾	L+ 5.50%	8.04	%	11/30/2023	$	124,118		87,515			86,883
CMI Marketing Inc ⁽³⁾ ^{(5) (15)} ⁽¹⁹⁾	-	-		5/24/2023	$	-		(18,608	)		-
Element Buyer, Inc. ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		7/19/2024	$	-		(59,017	)		(31,876	)
Zywave, Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 5.00%	7.52	%	11/17/2022	$	767,471		755,048			767,471

Total High Tech Industries								764,938			822,478
Hotel, Gaming & Leisure 0.1%
Aimbridge Hospitality LP ⁽³⁾ ^{(5) (15)} ⁽¹⁹⁾	-	-		6/22/2022	$	-		(14,830	)		-
Captain D's LLC ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²⁴⁾	L+ 4.50%	8.15	%	12/15/2023	$	788,361		772,975			755,771

Total Hotel, Gaming & Leisure								758,145			755,771
Media: Advertising, Printing & Publishing 0.4%
Ansira Holdings, Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	P+ 4.00%	9.50	%	12/20/2022	$	1,643,372		1,643,372			1,643,372
Cruz Bay Publishing ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	P+ 3.00%	8.50	%	6/6/2019	$	2,266,720		2,266,720			2,266,720

Total Media: Advertising, Printing & Publishing								3,910,092			3,910,092
Media: Diversified & Production 0.0%
Efficient Collaborative Retail Marketing Company, LLC ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		6/15/2022	$	-		-			-

Total Media: Diversified & Production								-			-
Retail 0.0%
Batteries Plus Holding Corporation ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		7/6/2022	$	-		-			-

Total Retail								-			-
Services: Business 0.1%
Sovos Compliance, LLC ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		3/1/2022	$	-		(10,034	)		(14,516	)
TEI Holdings Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	P+ 5.00%	10.50	%	12/20/2022	$	708,350		708,350			665,849

Total Services: Business								698,316			651,333
Services: Consumer 0.1%
McKissock, LLC ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	P+ 2.25%	7.68	%	8/5/2021	$	991,690		991,690			991,690

Total Services: Consumer								991,690			991,690
Telecommunications 0.0%
Horizon Telcom, Inc. ⁽²⁾ ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		6/15/2023	$	-		-			(17,379	)

Total Telecommunications								-			(17,379	)
Transportation: Cargo 0.0%
Grammer Purchaser, Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁸⁾ ⁽¹⁹⁾	L+ 4.75%	7.27	%	9/30/2024	$	105,000		105,629			89,250

Total Transportation: Cargo								105,629			89,250
Transportation: Consumer 0.0%
Direct Travel, Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		12/1/2021	$	-		-			-

Total Transportation: Consumer								-			-
Wholesale 0.0%
Abracon Group Holding, LLC. ⁽²⁾ ⁽³⁾ ⁽⁵⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	-	-		7/18/2024	$	-		(39,405	)		(28,334	)
Aramsco, Inc. ⁽³⁾ ⁽¹⁵⁾ ⁽¹⁹⁾	L+ 5.25%	7.77	%	8/28/2024	$	225,787		177,175			132,650

Total Wholesale								137,770			104,316

Total Revolver							$	15,633,819		$	15,789,395



Second Lien Senior Secured Loan 25.8%
Aerospace & Defense 4.7%
Forming & Machining Industries Inc. ⁽¹⁸⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 8.25%	10.85	%	10/9/2026	$	6,540,000		6,474,987			6,474,600
Jazz Acquisition, Inc. ⁽¹⁵⁾ ⁽²¹⁾	L+ 6.75%	9.55	%	6/20/2022	$	15,000,000		14,395,871			14,136,375
TECT Power Holdings, LLC ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 8.50%	11.02	%	12/27/2021	$	14,757,969		14,537,795			14,905,549
WP CPP Holdings, LLC. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 7.75%	10.28	%	4/30/2026	$	11,723,622		11,608,238			11,533,113

Total Aerospace & Defense								47,016,891			47,049,637
Automotive 0.6%
OEConnection LLC ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 8.00%	10.53	%	11/24/2025	$	6,312,688		6,273,929			6,265,343

Total Automotive								6,273,929			6,265,343


Capital Equipment 1.5%
EXC Holdings III Corp. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 7.50%	9.85	%	12/1/2025	$	8,240,489		8,254,043		7,869,667
Velvet Acquisition B.V. ^{(6) (18)} ⁽¹⁹⁾ ⁽²¹⁾	EURIBOR+ 8.00%	8.00	%	4/17/2026	€	6,013,072		7,312,569		6,949,523

Total Capital Equipment								15,566,612		14,819,190
Energy: Electricity 0.2%
Infinite Electronics International Inc. ⁽¹⁸⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 8.00%	10.52	%	7/2/2026	$	2,480,000		2,430,400		2,430,400

Total Energy: Electricity								2,430,400		2,430,400
Forest Products & Paper 1.5%
Solenis International LLC ⁽¹⁸⁾ ⁽²¹⁾	L+ 8.50%	11.21	%	6/26/2026	$	15,600,616		15,235,022		14,820,585

Total Forest Products & Paper								15,235,022		14,820,585
FIRE: Insurance 1.3%
Wink Holdco, Inc. ⁽¹⁵⁾ ⁽²¹⁾	L+ 6.75%	9.28	%	12/1/2025	$	13,637,543		13,577,886		12,887,479

Total FIRE: Insurance								13,577,886		12,887,479
Healthcare & Pharmaceuticals 5.5%
Concentra Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 6.50%	8.88	%	6/1/2023	$	14,104,833		13,861,386		14,051,940
Datix Bidco Limited ^{(6) (18)} ⁽¹⁹⁾ ⁽²¹⁾	GBP LIBOR+ 7.75%	8.68	%	4/27/2026	£	12,133,975		16,272,151		15,311,305
TecoStar Holdings, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 8.50%	10.89	%	11/1/2024	$	9,471,942		9,262,563		9,471,942
U.S. Anesthesia Partners, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 7.25%	9.77	%	6/23/2025	$	16,520,000		16,312,901		16,520,000

Total Healthcare & Pharmaceuticals								55,709,001		55,355,187
High Tech Industries 3.0%
Everest Bidco ⁽⁶⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	GBP LIBOR+ 7.50%	8.50	%	7/3/2026	£	10,216,216		13,059,928		12,630,942
nThrive, Inc. ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 9.75%	12.27	%	4/20/2023	$	8,000,000		7,982,464		7,760,000
Netsmart Technologies, Inc. ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 7.50%	10.03	%	10/19/2023	$	2,749,000		2,749,000		2,735,255
Park Place Technologies ⁽¹⁵⁾ ⁽²¹⁾	L+ 8.00%	10.52	%	3/30/2026	$	6,732,980		6,683,929		6,598,321

Total High Tech Industries								30,475,321		29,724,518
Hotel, Gaming & Leisure 1.8%
K-Mac Holdings Corp. ⁽¹²⁾ ⁽¹⁸⁾	L+ 6.75%	9.25	%	3/16/2026	$	3,200,000		3,192,581		3,024,000
NPC International, Inc. ⁽¹²⁾ ⁽¹⁵⁾ ⁽²¹⁾	L+ 7.50%	10.02	%	4/18/2025	$	9,158,667		9,193,992		8,654,940
Tacala Investment Corp. ⁽¹⁸⁾ ⁽²¹⁾	L+ 7.00%	9.52	%	1/30/2026	$	6,323,404		6,305,874		6,038,851

Total Hotel, Gaming & Leisure								18,692,447		17,717,791
Media: Advertising, Printing & Publishing 0.4%
Learfield Communications LLC ⁽¹²⁾ ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 7.25%	9.78	%	12/2/2024	$	4,050,000		4,016,231		4,050,000
Total Media: Advertising, Printing & Publishing								4,016,231		4,050,000

Retail 1.4%
CH Hold Corp. ⁽¹²⁾ ⁽¹⁵⁾	L+ 7.25%	9.77	%	2/3/2025	$	1,215,470		1,210,942		1,209,392
CVS Holdings I, LP ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 6.75%	9.28	%	2/6/2026	$	14,109,824		14,119,690		13,333,784

Total Retail								15,330,632		14,543,176
Services: Consumer 1.1%
Pearl Intermediate Parent LLC ⁽¹⁸⁾ ⁽²¹⁾	L+ 6.25%	8.75	%	2/13/2026	$	2,570,811		2,589,592		2,544,332
Trident LS Merger Sub Corp ⁽¹²⁾ ⁽¹⁸⁾	L+ 7.50%	10.02	%	5/1/2026	$	2,246,470		2,225,404		2,221,197
WeddingWire, Inc. ⁽¹⁸⁾ ⁽²¹⁾	L+ 8.25%	11.04	%	12/21/2026	$	6,186,667		6,124,800		6,155,733

Total Services: Consumer								10,939,796		10,921,262
Telecommunications 0.1%
Masergy Holdings, Inc. ⁽¹⁵⁾	L+ 7.50%	10.31	%	12/16/2024	$	857,143		863,323		840,000

Total Telecommunications								863,323		840,000
Transportation: Cargo 2.7%
Direct ChassisLink, Inc. ⁽¹²⁾ ⁽¹⁸⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 6.00%	8.53	%	6/15/2023	$	27,685,436		27,630,868		26,716,446

Total Transportation: Cargo								27,630,868		26,716,446

Total Second Lien Senior Secured Loan							$	263,758,359	$	258,141,014



Subordinated Debt 4.0%
Healthcare & Pharmaceuticals 2.5%
Genesis Supply Acquisition Co. ⁽¹⁹⁾	-	9.50	%	4/23/2021	$	25,000,000		25,000,000		25,000,000

Total Healthcare & Pharmaceuticals								25,000,000		25,000,000
Transportation: Cargo 1.5%
Omni Logistics, LLC ⁽¹⁵⁾ ⁽¹⁹⁾ ⁽²¹⁾	L+ 11.50%	14.02	%	1/19/2024	$	15,000,000		14,710,860		14,625,000

Total Transportation: Cargo								14,710,860		14,625,000

Total Subordinated Debt							$	39,710,860	$	39,625,000

Total Corporate Debt							$	1,401,044,721	$	1,379,928,914



Equity 0.7%
Series A Preferred Units 0.2%
Healthcare & Pharmaceuticals 0.2%
CB Titan Holdings, Inc. ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁵⁾	-	-		-		1,952,879		1,952,879		2,206,753

Total Healthcare & Pharmaceuticals								1,952,879		2,206,753

Total Series A Preferred Units								1,952,879		2,206,753



Equity Interest 0.4%
Construction & Building 0.1%
PP Ultimate Holdings B, LLC ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁵⁾	-	-		-		1,352		1,351,900		1,352,000

Total Construction & Building								1,351,900		1,352,000
High Tech Industries 0.0%
Impala Private Investments, LLC ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁵⁾	-	-		-		1,500,000		-		126,232

Total High Tech Industries								-		126,232


Transportation: Cargo 0.0%
Grammer Investment Holdings LLC ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁵⁾	-	-		-		600,000		600,000		600,000

Total Transportation: Cargo								600,000		600,000
Wholesale 0.3%
Abracon Group Holding, LLC. ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁵⁾	-	-		-		1,800		1,800,000		1,991,700
Armor Group, LP ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁵⁾	-	-		-		10,119		1,011,905		1,008,662

Total Wholesale								2,811,905		3,000,362

Total Equity Interest							$	4,763,805	$	5,078,594
Preferred Equity 0.1%
Transportation: Cargo 0.1%
Grammer Investment Holdings LLC ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁵⁾	10% PIK	10.00	%	-		6,000		600,000		600,000

Total Transportation: Cargo								600,000		600,000

Total Preferred Equity							$	600,000	$	600,000
Warrants 0.0%
Transportation: Cargo 0.0%
Grammer Investment Holdings LLC ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁵⁾	-	-		-		121,811		-		-

Total Transportation: Cargo							$	-	$	-

Total Warrants							$	-	$	-

Total Equity							$	7,316,684	$	7,885,347



Total Non-Controlled/Non-Affiliate Investments							$	1,449,749,445	$	1,422,837,431



Non-Controlled/Affiliate Investments 0.7%
Equity 0.7%
Equity Interest 0.7%
Beverage, Food & Tobacco 0.7%
ADT Pizza, LLC ⁽¹⁰⁾ ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁵⁾	-	-		-		6,720,000		6,720,000		6,720,000

Total Beverage, Food & Tobacco								6,720,000		6,720,000

Total Equity Interest							$	6,720,000	$	6,720,000

Total Equity							$	6,720,000	$	6,720,000



Total Non-Controlled/Affiliate Investments							$	6,720,000	$	6,720,000



Controlled Affiliate Investments 29.8%
Corporate Debt 0.4%
First Lien Senior Secured Loan 0.4%
Aerospace & Defense 0.4%
BCC Jetstream Holdings Aviation (On II), LLC ⁽¹⁰⁾ ⁽¹¹⁾ ⁽¹⁹⁾ ⁽²⁰⁾	-	10.00	%	6/2/2022	$	4,162,757		4,162,757		4,162,757

Total Aerospace & Defense								4,162,757		4,162,757

Total First Lien Senior Secured Loan							$	4,162,757	$	4,162,757

Total Corporate Debt							$	4,162,757	$	4,162,757



Equity 29.4%
Equity Interest 1.5%
Aerospace & Defense 1.5%
BCC Jetstream Holdings Aviation (On II), LLC ⁽¹⁰⁾ ⁽¹¹⁾ ⁽¹⁹⁾ ⁽²⁰⁾ ⁽²⁵⁾	-	-		-		731,387		731,387		1,243,216
BCC Jetstream Holdings Aviation (Off I), LLC ⁽⁶⁾ ⁽¹⁰⁾ ⁽¹¹⁾ ⁽¹⁹⁾ ⁽²⁰⁾ ⁽²⁵⁾	-	-		-		11,862,614		11,862,614		13,479,475

Total Aerospace & Defense								12,594,001		14,722,691

Total Equity Interest							$	12,594,001	$	14,722,691

Investment Vehicles 27.9%
Antares Bain Capital Complete Financing Solution LLC ⁽⁶⁾ ⁽¹⁰⁾ ⁽¹¹⁾ ⁽¹⁹⁾ ⁽²⁵⁾	-	-		-		279,890,772		279,890,772		279,362,792

Total Investment Vehicles							$	279,890,772	$	279,362,792

Total Equity							$	292,484,773	$	294,085,483



Unfunded Commitment 0.0%
Aerospace & Defense 0.0%
BCC Jetstream Holdings Aviation (On II), LLC ⁽⁷⁾ ⁽¹⁰⁾ ⁽¹¹⁾ ⁽¹⁴⁾ ⁽¹⁹⁾ ⁽²⁰⁾	-	-		6/2/2022		-		-		-

Total Aerospace & Defense								-		-

Total Unfunded Commitment								-		-

Total Controlled Affiliate Investments							$	296,647,530	$	298,248,240



Total Investments							$	1,753,116,975	$	1,727,805,671



Cash Equivalents 0.1%
Goldman Sachs Financial Square Government Fund Institutional Share Class	-	2.52	%	-		876,881		876,881		876,881

Total Cash Equivalents							$	876,881	$	876,881



Total Investments and Cash Equivalents							$	1,753,993,856	$	1,728,682,552



Forward Foreign Currency Exchange Contracts

Currency Purchased	Currency Sold	Counterparty	Settlement Date	Unrealized Appreciation (Depreciation) ⁽⁸⁾

U.S. DOLLARS 8,720,000	POUND STERLING 6,400,000	Bank of New York Mellon	9/21/2020	$	355,091
U.S. DOLLARS 27,913,899	EURO 22,117,810	Bank of New York Mellon	1/18/2019		2,184,652
U.S. DOLLARS 11,541,188	POUND STERLING 8,262,000	Bank of New York Mellon	1/18/2019		445,074
U.S. DOLLARS 12,042,274	EURO 10,080,000	Bank of New York Mellon	6/21/2019		344,462
U.S. DOLLARS 10,064,978	DANISH KRONE 59,805,094	Citibank	1/18/2019		567,944
U.S. DOLLARS 9,957,148	NORWEGIAN KRONE 77,560,211	Citibank	1/18/2019		334,485
U.S. DOLLARS 3,169,087	AUSTRALIAN DOLLARS 4,127,383	Citibank	4/11/2019		81,710
U.S. DOLLARS 13,192,107	POUND STERLING 9,260,478	Citibank	4/11/2019		698,583
U.S. DOLLARS 412,089	POUND STERLING 310,000	Citibank	9/21/2020		(6,913)
U.S. DOLLARS 3,577,812	POUND STERLING 2,630,000	Goldman Sachs	4/11/2019		213,533
U.S. DOLLARS 3,090,562	AUD 4,130,000	Goldman Sachs	6/14/2019		176,427
U.S. DOLLARS 8,937,749	DANISH KRONE 55,570,000	Goldman Sachs	6/14/2019		291,425
U.S. DOLLARS 11,718,855	EURO 9,790,000	Goldman Sachs	6/14/2019		364,746
U.S. DOLLARS 60,093,636	POUND STERLING 44,750,000	Goldman Sachs	6/14/2019		2,679,311
U.S. DOLLARS 8,993,793	NORWEGIAN KRONE 72,170,000	Goldman Sachs	6/14/2019		591,228

				$	9,321,758


		⁽¹⁾ The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ("LIBOR" or "L"), the Euro Interbank Offered Rate ("EURIBOR" or "E"),British Pound Sterling LIBOR Rate ("GBP LIBOR"), the Norwegian Interbank Offered Rate ("NIBOR" or "N"), the Copenhagen Interbank Offered Rate ("CIBOR" or "C"), the Bank Bill Swap Rate ("BBSW"), or the Prime Rate ("Prime" or "P") and which reset daily, monthly, quarterly or semiannually. Investments or a portion thereof may bear Payment-in-Kind ("PIK"). For each, the Company has provided the PIK or the spread over LIBOR, EURIBOR, GBP LIBOR, NIBOR, CIBOR, BBSW, or Prime and the current weighted average interest rate in effect at December 31, 2018. Certain investments are subject to a LIBOR, EURIBOR, GBP LIBOR, NIBOR, CIBOR, BBSW, or Prime interest rate floor.
		⁽²⁾ The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.
		⁽³⁾ Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. The investment may be subject to an unused/letter of credit facility fee.
		⁽⁴⁾ Percentages are based on the Company's net assets of $1,001,629,147 as of December 31, 2018.
		⁽⁵⁾ The negative amortized cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
		⁽⁶⁾ The investment is not a qualifying asset under Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2018, non-qualifying assets totaled 24.4% of the Company's total assets.
		⁽⁷⁾ The assets to be issued will be determined at the time the funds are called.
		⁽⁸⁾ Unrealized appreciation/(depreciation) on forward currency exchange contracts.
		⁽⁹⁾ The principal amount (par amount) for all debt securities is denominated in U.S. dollars, unless otherwise noted. £ represents Pound Sterling, € represents Euro, NOK represents Norwegian krone, AUD represents Australian and DKK represents Kroner.
		⁽¹⁰⁾ As defined in the 1940 Act, the Company is deemed to be an "Affiliated Investment" of the Company as the Company owns five percent or more of the portfolio company's securities.
		⁽¹¹⁾ As defined in the 1940 Act, the Company is deemed to "Control" this portfolio company as the Company either owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company.
		⁽¹²⁾ Assets or a portion thereof are pledged as collateral for the 2018-1 Issuer. See Note 6 "Borrowings".
		⁽¹³⁾ $690,197 of the total par amount for this security is at P+ 3.75%.
		⁽¹⁴⁾ Non-Income Producing.
		⁽¹⁵⁾ Loan includes interest rate floor of 1.00%.
		⁽¹⁶⁾ Loan includes interest rate floor of 0.75%.
		⁽¹⁷⁾ Loan includes interest rate floor of 0.50%.
		⁽¹⁸⁾ Loan includes interest rate floor of 0.00%.
		⁽¹⁹⁾ Security valued using unobservable inputs (Level 3).
		⁽²⁰⁾ The Company holds non-controlling, affiliate interest in an aircraft-owning special purpose vehicle through this investment.
		⁽²¹⁾ Assets or a portion thereof are pledged as collateral for the BCSF Revolving Credit Facility. See Note 6 "Borrowings".
		⁽²²⁾ The Company generally earns a higher interest rate on the "last out" tranche of debt, to the extent the debt has been allocated to "first out" and "last out" tranches, whereby the "first out" tranche will have priority as to the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder.
		⁽²³⁾ $2,266,720 of the total par amount for this security is at P+ 3.50%.
		⁽²⁴⁾ $471,776 of the total par amount for this security is at P+ 3.50%.
		⁽²⁵⁾ Security 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 December 31, 2018, the aggregate fair value of these securities is $308,690,830 or 30.8% of the Company's net assets. The acquisition dates of the restricted securities are as follows:

Portfolio Company⁽⁴⁾	Spread Above Index⁽¹⁾			Principal/ Par Amount/ Shares⁽⁹⁾		Amortized Cost		Fair Value

Investments and Cash Equivalents 190.4%
Investments 164.0%
Non-Controlled/Non-Affiliate Investments 126.8%
Corporate Fixed Income 1.6%
Corporate Bond 1.6%
Utilities: Electric 1.6%
CSVC Acquisition Corp	-	7.75%	6/15/2025	$	8,478,000	$	8,478,000	$	8,138,880

Total Utilities: Electric							8,478,000		8,138,880

Total Corporate Bond						$	8,478,000	$	8,138,880



Total Corporate Fixed Income						$	8,478,000	$	8,138,880

Corporate Debt 124.5%
Delayed Draw Term Loan 0.1%
Capital Equipment 0.0%
Endries International, Inc.^{(3)(5)(15)(19)}	-	-	6/1/2023	$	-		(44,681)		-

Total Capital Equipment							(44,681)		-
Healthcare & Pharmaceuticals 0.0%
Great Expressions Dental Centers PC^{(2)(3)(5)(15)(19)}	-	-	9/28/2023	$	-		(4,147)		(10,005)

Total Healthcare & Pharmaceuticals							(4,147)		(10,005)
Hotel, Gaming & Leisure 0.0%
NPC International, Inc.^{(2)(3)(5)(15)(19)}	-	-	4/18/2025	$	-		(18,711)		(20,002)

Total Hotel, Gaming & Leisure							(18,711)		(20,002)
Media: Diversified & Production 0.1%
International Entertainment Investments Limited^{(3)(6)(18)(19)}	GBP LIBOR + 4.25%	4.75%	2/28/2022	£	599,178		755,088		795,989

Total Media: Diversified & Production							755,088		795,989
Services: Business 0.0%
Lakeland Tours, LLC^{(3)(5)(15)(21)}	-	-	12/8/2024	$	-		(466)		1,866
Sovos Compliance, LLC^{(2)(3)(15)(19)}	-	-	3/1/2022	$	-		-		(48,387)

Total Services: Business							(466)		(46,521)

Total Delayed Draw Term Loan						$	687,083	$	719,461



First Lien Last Out Term Loan 6.0%
Environmental Industries 4.0%
Adler & Allan Group Limited^{(6)(17)(19)(21)(22)}	GBP LIBOR + 7.50%	8.00%	6/30/2024	£	15,141,463		19,064,227		20,256,052

Total Environmental Industries							19,064,227		20,256,052

Healthcare & Pharmaceuticals 2.0%
Clinical Innovations, LLC^{(15)(19)(21)(22)}	L + 6.00%	7.49%	10/17/2023	$	10,365,517		10,136,979		10,132,293

Total Healthcare & Pharmaceuticals							10,136,979		10,132,293

Total First Lien Last Out Term Loan						$	29,201,206	$	30,388,345



First Lien Senior Secured Loan 93.8%
Aerospace & Defense 3.9%
Anaren, Inc.^(15)(19)(21)	L + 4.50%	6.19%	2/18/2021	$	2,509,630		2,522,237		2,522,178
Novetta, LLC⁽¹⁵⁾	L + 5.00%	6.70%	10/17/2022	$	3,854,294		3,778,545		3,745,892
Salient CRGT, Inc.^(15)(19)(21)	L + 5.75%	7.32%	2/28/2022	$	3,708,100		3,645,930		3,740,546
StandardAero Aviation Holdings, Inc.^(15)(21)	L + 3.75%	5.32%	7/7/2022	$	9,923,858		10,025,652		10,016,894

Total Aerospace & Defense							19,972,364		20,025,510
Automotive 3.6%
CST Buyer Company^(15)(19)(21)	L + 6.25%	7.75%	3/1/2023	$	9,801,261		9,674,796		9,879,671
OEConnection LLC^(15)(21)	L + 4.00%	5.69%	11/22/2024	$	8,175,779		8,134,900		8,165,560

Total Automotive							17,809,696		18,045,231
Beverage, Food & Tobacco 6.5%
Captain D's LLC^(15)(19)(21)	L + 4.50%	5.98%	12/15/2023	$	13,540,845		13,405,528		13,405,437
K-Mac Holdings Corp.^(15)(19)(21)	L + 4.75%	6.32%	12/20/2022	$	14,040,000		13,850,449		14,138,280
Restaurant Technologies, Inc.^(15)(21)	L + 4.75%	6.20%	11/23/2022	$	5,266,653		5,221,740		5,260,070

Total Beverage, Food & Tobacco							32,477,717		32,803,787
Capital Equipment 5.0%
Dorner Manufacturing Corp.^(15)(19)(21)	L + 5.75%	7.32%	3/15/2023	$	8,288,872		8,108,458		8,305,450
DXP Enterprises, Inc.^{(6)(15)(19)(21)}	L + 5.50%	7.07%	8/29/2023	$	5,230,350		5,180,464		5,282,654
Endries International, Inc.^(15)(19)(21)	L + 4.75%	6.15%	6/1/2023	$	6,540,319		6,452,400		6,540,319
Wilsonart LLC^(15)(21)	L + 3.25%	4.95%	12/19/2023	$	5,473,747		5,531,399		5,511,866

Total Capital Equipment							25,272,721		25,640,289


Chemicals, Plastics & Rubber 1.6%
ASP Chromaflo Intermediate Holdings, Inc.^(15)(21)	L + 4.00%	5.57%	11/20/2023	$	509,990		507,862		513,496
ASP Chromaflo Intermediate Holdings, Inc.^(6)(15)(21)	L + 4.00%	5.57%	11/20/2023	$	663,150		660,383		667,709
Niacet b.v.^{(6)(15)(19)(21)}	EURIBOR + 4.50%	5.50%	2/1/2024	€	3,865,193		4,133,673		4,651,765
Niacet Corporation^(15)(19)(21)	L + 4.50%	6.19%	2/1/2024	$	2,223,200		2,204,254		2,228,758

Total Chemicals, Plastics & Rubber							7,506,172		8,061,728
Construction & Building 3.4%
Bolt Infrastructure Merger Sub, Inc.^(15)(21)	L + 3.50%	5.07%	6/21/2024	$	2,697,465		2,684,931		2,706,744
Regan Development Holdings Limited^(6)(17)(19)	EURIBOR + 7.00%	7.50%	5/2/2022	€	2,825,002		3,077,840		3,398,198
Regan Development Holdings Limited^(6)(17)(19)	EURIBOR + 7.00%	7.50%	5/2/2022	€	8,574,506		9,167,494		10,314,281
Regan Development Holdings Limited^(6)(17)(19)	EURIBOR + 7.00%	7.50%	5/2/2022	€	915,945		1,040,239		1,101,791

Total Construction & Building							15,970,504		17,521,014
Consumer Goods: Durable 3.0%
Harbor Freight Tools USA, Inc.^(16)(21)	L + 3.25%	4.82%	8/18/2023	$	15,000,000		15,105,349		15,118,365

Total Consumer Goods: Durable							15,105,349		15,118,365
Consumer Goods: Non-Durable 4.2%
FineLine Technologies, Inc.^(15)(19)(21)	L + 4.75%	6.44%	11/2/2022	$	14,659,018		14,379,947		14,585,723
Kronos Acquisition Holdings Inc.^(15)(21)	L + 4.50%	6.17%	8/26/2022	$	2,783,522		2,776,997		2,809,038
Melissa & Doug, LLC^(15)(19)(21)	L + 3.75%	5.44%	6/19/2024	$	3,830,680		3,814,142		3,859,410

Total Consumer Goods: Non-Durable							20,971,086		21,254,171
Containers, Packaging & Glass 5.0%
BWAY Holding Company^(18)(21)	L + 3.25%	4.60%	4/3/2024	$	12,942,481		12,941,997		13,013,264
CSP Technologies North America, LLC^(15)(19)(21)	L + 5.25%	6.94%	1/29/2022	$	12,285,894		12,285,894		12,316,608

Total Containers, Packaging & Glass							25,227,891		25,329,872
Energy: Oil & Gas 2.7%
Keane Group, Inc.^{(6)(15)(19)(21)}	L + 7.25%	9.00%	8/18/2022	$	13,793,468		13,666,341		13,807,262

Total Energy: Oil & Gas							13,666,341		13,807,262
Healthcare & Pharmaceuticals 5.8%
Drive DeVilbiss^(15)(21)	L + 5.50%	7.19%	1/3/2023	$	6,714,072		6,189,778		6,214,545
Great Expressions Dental Centers PC^(15)(19)(21)	L + 4.75%	6.32%	9/28/2023	$	8,063,925		7,959,637		7,942,966
Island Medical Management Holdings, LLC^(15)(19)(21)	L + 5.50%	7.00%	9/1/2022	$	10,629,110		10,480,292		10,310,237
U.S. Anesthesia Partners, Inc.^(15)(21)	L + 3.25%	4.82%	6/23/2024	$	4,987,469		4,969,431		5,006,172

Total Healthcare & Pharmaceuticals							29,599,138		29,473,920
High Tech Industries 16.4%
Lighthouse Network, LLC^(15)(21)	L + 4.50%	6.07%	11/29/2024	$	16,250,891		16,171,524		16,332,145
Netsmart Technologies, Inc.^(15)(21)	L + 4.50%	6.19%	4/19/2023	$	16,166,203		16,200,542		16,375,022
Qlik Technologies^(15)(21)	L + 3.50%	5.04%	4/26/2024	$	17,917,481		17,867,534		17,559,132
SolarWinds Holdings, Inc.^(15)(21)	L + 3.50%	5.07%	2/3/2023	$	14,912,218		15,011,042		14,984,915
Zywave, Inc.^(15)(19)(21)	L + 5.00%	6.61%	11/17/2022	$	17,728,574		17,580,683		17,728,574

Total High Tech Industries							82,831,325		82,979,788
Insurance 2.0%
Alliant Holdings Intermediate, LLC^(15)(21)	L + 3.25%	4.80%	8/12/2022	$	7,480,852		7,550,046		7,528,475
Wink Holdco, Inc.^(15)(21)	L + 3.00%	4.49%	11/2/2024	$	2,619,172		2,612,843		2,645,364

Total Insurance							10,162,889		10,173,839
Media: Broadcasting & Subscription 3.0%
Micro Holding Corp.^(18)(21)	L + 3.75%	5.34%	9/13/2024	$	14,962,500		14,927,621		15,019,941

Total Media: Broadcasting & Subscription							14,927,621		15,019,941
Media: Diversified & Production 4.2%
Deluxe Entertainment Services Group Inc.^(15)(21)	L + 5.50%	6.88%	2/28/2020	$	10,912,628		10,454,998		10,721,657
International Entertainment Investments Limited^{(6)(18)(19)(21)}	GBP LIBOR + 4.75%	5.24%	5/31/2022	£	7,673,114		9,314,218		10,368,679

Total Media: Diversified & Production							19,769,216		21,090,336
Real Estate 2.1%
Spectre (Carrisbrook House) Limited^(6)(15)(19)	EURIBOR + 7.50%	8.50%	8/9/2021	€	9,300,000		10,644,272		10,863,204

Total Real Estate							10,644,272		10,863,204
Retail 2.6%
CH Hold Corp.^(15)(21)	L + 3.00%	4.57%	2/1/2024	$	1,514,280		1,511,626		1,525,637
Eyemart Express LLC^(15)(21)	L + 3.00%	4.44%	8/4/2024	$	11,622,196		11,667,646		11,647,626

Total Retail							13,179,272		13,173,263
Services: Business 10.8%
Advantage Sales & Marketing Inc.^(15)(21)	L + 3.25%	4.63%	7/23/2021	$	15,907,613		15,579,348		15,553,000
Comet Bidco Limited^(6)(18)	GBP LIBOR + 5.25%	5.74%	10/10/2024	£	6,260,870		8,025,268		8,321,073
Genuine Financial Holdings LLC^(15)(19)(21)	L + 4.75%	6.38%	1/26/2023	$	9,493,949		9,394,123		9,588,888
Lakeland Tours, LLC^(15)(21)	L + 4.00%	5.59%	12/8/2024	$	2,265,805		2,260,141		2,288,463
New Insight Holdings, Inc.^(15)(21)	L + 5.50%	7.13%	12/20/2024	$	10,673,472		10,140,377		10,250,984
Sovos Compliance, LLC^(15)(19)(21)	L + 6.00%	7.57%	3/1/2022	$	8,687,901		8,610,473		8,601,022
Travel Leaders Group, LLC^(18)(21)	L + 4.50%	5.92%	1/25/2024	$	294,097		292,867		298,876

Total Services: Business							54,302,597		54,902,306
Telecommunications 2.6%
Masergy Holdings, Inc.^(15)(21)	L + 3.75%	5.44%	12/15/2023	$	693,116		690,187		697,448
Polycom, Inc.^(15)(21)	L + 5.25%	6.78%	9/27/2023	$	12,164,688		12,014,392		12,291,408

Total Telecommunications							12,704,579		12,988,856
Wholesale 5.4%
American Tire Distributors Inc.^(15)(21)	L + 4.25%	5.82%	9/1/2021	$	17,028,623		17,120,740		17,171,238
PT Holdings, LLC^(15)(21)	L + 4.00%	5.57%	11/30/2024	$	9,954,211		9,904,920		10,016,424

Total Wholesale							27,025,660		27,187,662

Total First Lien Senior Secured Loan						$	469,126,410	$	475,460,344


Revolver 1.4%
Automotive 0.0%
CST Buyer Company^{(3)(5)(15)(19)}	-	-	3/1/2023	$	-		(11,593)		7,180

Total Automotive							(11,593)		7,180
Banking 0.0%
Tidel Engineering, L.P.^(3)(15)(19)	-	-	3/1/2023	$	-		-		-

Total Banking							-		-
Beverage, Food & Tobacco 0.2%
Captain D's LLC^(3)(15)(19)	L + 4.50%	6.03%	12/15/2023	$	1,018,981		1,000,490		1,000,358
K-Mac Holdings Corp.^(3)(15)(19)	L + 3.50%	5.07%	12/20/2021	$	160,000		160,000		171,200

Total Beverage, Food & Tobacco							1,160,490		1,171,558
Capital Equipment 0.2%
Dorner Manufacturing Corp.^(3)(15)(19)	L + 5.75%	7.32%	3/15/2023	$	439,553		415,595		443,949
Endries International, Inc.^(3)(15)(19)	P + 3.75%	8.25%	6/1/2022	$	701,568		658,025		701,568
Winchester Electronics Corporation^(3)(15)(19)	-	-	6/30/2021	$	-		-		-

Total Capital Equipment							1,073,620		1,145,517
Chemicals, Plastics & Rubber 0.2%
AP Plastics Group, LLC^(3)(15)(19)	L + 4.75%	6.12%	8/1/2021	$	935,022		935,022		935,022
PRCC Holdings, Inc.^(3)(19)	-	-	2/1/2021	$	-		-		-

Total Chemicals, Plastics & Rubber							935,022		935,022
Construction & Building 0.0%
Stanton Carpet Corp.^(3)(15)(19)	-	-	11/21/2022	$	-		-		-

Total Construction & Building							-		-
Consumer Goods: Non-Durable 0.0%
FineLine Technologies, Inc.^{(2)(3)(5)(15)(19)}	-	-	11/2/2021	$	-		(45,292)		(13,104)
Solaray, LLC^(3)(15)(19)	-	-	9/9/2022	$	-		-		-

Total Consumer Goods: Non-Durable							(45,292)		(13,104)
Healthcare & Pharmaceuticals 0.2%
Clinical Innovations, LLC^{(3)(15)(19)(22)}	L + 6.00%	7.49%	10/17/2022	$	153,563		128,728		127,649
Great Expressions Dental Centers PC^{(3)(12)(15)(19)}	L + 4.75%	6.39%	9/28/2022	$	983,614		969,683		966,109

Total Healthcare & Pharmaceuticals							1,098,411		1,093,758
High Tech Industries 0.1%
Zywave, Inc.^{(3)(13)(15)(19)}	L + 5.00%	7.43%	11/17/2022	$	287,802		272,177		287,802

Total High Tech Industries							272,177		287,802
Media: Advertising, Printing & Publishing 0.1%
Ansira Holdings, Inc.^(3)(15)(19)	-	-	12/20/2022	$	-		-		-
Cruz Bay Publishing, Inc.^(3)(15)(19)	P + 3.00%	7.50%	6/6/2019	$	566,680		566,680		566,680

Total Media: Advertising, Printing & Publishing							566,680		566,680
Media: Diversified & Production 0.0%
Efficient Collaborative Retail Marketing Company, LLC^(3)(15)(19)	-	-	6/15/2022	$	-		-		-

Total Media: Diversified & Production							-		-
Retail 0.0%
Batteries Plus Holding Corporation^(3)(15)(19)	-	-	7/6/2022	$	-		-		-

Total Retail							-		-
Services: Business 0.1%
McKissock, LLC^(3)(15)(19)	P + 2.50%	7.00%	8/5/2019	$	708,350		708,350		708,350
Sovos Compliance, LLC^{(2)(3)(5)(15)(19)}	-	-	3/1/2022	$	-		(13,204)		(14,516)
TEI Holdings Inc.^(3)(15)(19)	-	-	12/20/2022	$	-		-		-

Total Services: Business							695,146		693,834
Transportation: Cargo 0.3%
ENC Holding Corporation^(3)(15)(19)	P + 3.75%	8.25%	2/8/2023	$	1,521,775		1,521,775		1,521,775

Total Transportation: Cargo							1,521,775		1,521,775
Transportation: Consumer 0.0%
Direct Travel, Inc.^(3)(19)	-	-	12/1/2021	$	-		-		-

Total Transportation: Consumer							-		-

Total Revolver						$	7,266,436	$	7,410,022



Second lien senior secured loan 23.2%
Aerospace & Defense 2.9%
TECT Power Holdings, LLC^(15)(19)(21)	L + 8.50%	10.07%	12/27/2021	$	14,757,969		14,483,760		14,772,727

Total Aerospace & Defense							14,483,760		14,772,727
Automotive 1.3%
OEConnection LLC^(15)(19)(21)	L + 8.00%	9.69%	11/17/2025	$	6,460,396		6,396,132		6,460,396

Total Automotive							6,396,132		6,460,396
Beverage, Food & Tobacco 0.3%
Restaurant Technologies, Inc.^(15)(19)(21)	L + 8.75%	10.20%	11/23/2023	$	1,693,548		1,663,433		1,697,782

Total Beverage, Food & Tobacco							1,663,433		1,697,782
Capital Equipment 1.1%
EXC Holdings III Corp.^(15)(21)	L + 7.50%	9.16%	11/16/2025	$	5,240,489		5,197,471		5,319,096

Total Capital Equipment							5,197,471		5,319,096
Energy: Oil & Gas 2.6%
Bruin E&P Partners, LLC^(15)(19)	L + 7.38%	8.90%	3/7/2023	$	13,020,000		12,805,884		13,150,200

Total Energy: Oil & Gas							12,805,884		13,150,200


Healthcare & Pharmaceuticals 5.1%
TecoStar Holdings, Inc.^(15)(19)(21)	L + 8.50%	9.88%	11/1/2024	$	9,471,942		9,246,013		9,481,414
U.S. Anesthesia Partners, Inc.^(15)(19)(21)	L + 7.25%	8.82%	6/23/2025	$	16,520,000		16,288,816		16,553,040

Total Healthcare & Pharmaceuticals							25,534,829		26,034,454
High Tech Industries 4.2%
Intralinks, Inc.^(15)(21)	L + 8.00%	9.70%	11/10/2025	$	13,469,388		13,335,962		13,458,168
nThrive, Inc.^(15)(19)(21)	L + 9.75%	11.32%	4/20/2023	$	8,000,000		7,980,000		7,960,000

Total High Tech Industries							21,315,962		21,418,168
Hotel, Gaming & Leisure 1.0%
NPC International, Inc.^(15)(21)	L + 7.50%	9.05%	4/18/2025	$	4,703,667		4,683,039		4,821,259

Total Hotel, Gaming & Leisure							4,683,039		4,821,259
Insurance 0.4%
Wink Holdco, Inc.^(15)(21)	L + 6.75%	8.24%	11/2/2025	$	2,039,478		2,029,614		2,064,972

Total Insurance							2,029,614		2,064,972
Media: Advertising, Printing & Publishing 1.1%
Learfield Communications LLC^(15)(19)(21)	L + 7.25%	8.82%	12/2/2024	$	5,400,000		5,351,468		5,454,000

Total Media: Advertising, Printing & Publishing							5,351,468		5,454,000
Retail 0.2%
CH Hold Corp.^(15)(21)	L + 7.25%	8.82%	2/3/2025	$	1,215,470		1,210,312		1,242,818

Total Retail							1,210,312		1,242,818
Services: Business 1.0%
OPE Inmar Acquisition, Inc.^(15)(21)	L + 8.00%	9.42%	5/1/2025	$	5,058,410		5,003,214		5,048,925

Total Services: Business							5,003,214		5,048,925
Telecommunications 0.2%
Masergy Holdings, Inc.^(15)(21)	L + 8.50%	10.19%	12/16/2024	$	778,846		771,793		790,042

Total Telecommunications							771,793		790,042

Transportation: Cargo 1.8%
Direct ChassisLink, Inc.^(18)(19)(21)	L + 6.00%	7.51%	6/15/2023	$	9,031,936		8,986,776		9,212,575

Total Transportation: Cargo							8,986,776		9,212,575

Total Second lien senior secured loan						$	115,433,687	$	117,487,414

Total Corporate Debt						$	621,714,822	$	631,465,586



Equity 0.7%
Series A Preferred Units 0.4%
Healthcare & Pharmaceuticals 0.4%
CB Titan Holdings, Inc.^(14)(19)	-	-	-		1,952,879		1,952,879		1,963,490

Total Healthcare & Pharmaceuticals							1,952,879		1,963,490

Total Series A Preferred Units							1,952,879		1,963,490



High Tech Industries 0.3%
Equity Interest 0.3%
Impala Private Investments, LLC^(14)(19)	-	-	-		1,500,000		1,500,000		1,500,000

Total High Tech Industries							1,500,000		1,500,000

Total Equity Interest							1,500,000		1,500,000



Total Equity						$	3,452,879	$	3,463,490



Total Non-Controlled/Non-Affiliate Investments						$	633,645,701	$	643,067,956



Controlled Affiliate Investments 37.2%
Corporate Debt 0.4%
First lien senior secured loan 0.4%
Aerospace & Defense 0.4%
BCC Jetstream Holdings Aviation (On II), LLC^{(10)(11)(19)(20)}	-	10.00%	6/2/2022	$	1,837,216		1,837,216		1,837,216

Total Aerospace & Defense							1,837,216		1,837,216

Total First lien senior secured loan						$	1,837,216	$	1,837,216

Total Corporate Debt						$	1,837,216	$	1,837,216



Equity 36.8%
Equity Interest 36.8%
Aerospace & Defense 1.6%
BCC Jetstream Holdings Aviation (On II), LLC^(10)(11)(14)^(19)(20)	-	-	-		324,214		324,214		424,261
BCC Jetstream Holdings Aviation (Off I), LLC^(6)(10)(11)^(14)(19)(20)	-	-	-		7,403,505		7,403,505		7,838,831

Total Aerospace & Defense							7,727,719		8,263,092
Investment Vehicles 35.2%
Antares Bain Capital Complete Financing Solution LLC^{(6)(10)(11)(19)}	-	-	-		178,052,288		178,052,288		178,409,807

Total Investment Vehicles							178,052,288		178,409,807

Total Equity Interest						$	185,780,007	$	186,672,899

Total Equity						$	185,780,007	$	186,672,899

Currency Purchased	Currency Sold	Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)

U.S. DOLLARS 235,405	EURO 202,017	Bank of New York Mellon	1/2/2018	$	(7,139)
U.S. DOLLARS 278,347	EURO 238,447	Bank of New York Mellon	2/2/2018		(8,463)
U.S. DOLLARS 16,380,814	EURO 15,080,000	Bank of New York Mellon	3/6/2018		(1,792,291)
U.S. DOLLARS 65,054	EURO 53,872	Bank of New York Mellon	4/3/2018		15
U.S. DOLLARS 12,118,964	EURO 10,080,000	Bank of New York Mellon	6/22/2018		(114,837)
U.S. DOLLARS 49,293	POUND STERLING 36,384	Bank of New York Mellon	1/2/2018		115
U.S. DOLLARS 40,752	POUND STERLING 30,542	Bank of New York Mellon	1/12/2018		(562)
U.S. DOLLARS 400,093	POUND STERLING 305,318	Citibank	1/31/2018		(13,196)
U.S. DOLLARS 9,647,586	POUND STERLING 7,635,000	Bank of New York Mellon	3/6/2018		(698,500)
U.S. DOLLARS 20,063,392	POUND STERLING 15,200,000	Citibank	6/22/2018		(614,324)
U.S. DOLLARS 8,060,115	POUND STERLING 6,090,000	Bank of New York Mellon	9/28/2018		(255,632)

				$	(3,504,814)


		⁽¹⁾ The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ("LIBOR" or "L"), the Euro Interbank Offered Rate ("EURIBOR" or "E"), British Pound Sterling LIBOR Rate ("GBP LIBOR") or the Prime Rate ("Prime" or "P") and which reset daily, monthly, quarterly or semiannually. For each, the Company has provided the spread over LIBOR, EURIBOR, GBP LIBOR or Prime and the current weighted average interest rate in effect at December 31, 2017. Certain investments are subject to a LIBOR, EURIBOR, GBP LIBOR or Prime interest rate floor.
		⁽²⁾ The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.
		⁽³⁾ Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. The investment may be subject to an unused/letter of credit facility fee.
		⁽⁴⁾ Percentages are based on the Company's net assets of $506,962,828 as of December 31, 2017.
		⁽⁵⁾ The negative amortized cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
		⁽⁶⁾ The investment is not a qualifying asset under Section 55(a) of the Investment Company Act of 1940. The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2017, non-qualifying assets totaled 28.1% of the Company's total assets.
		⁽⁷⁾ The assets to be issued will be determined at the time the funds are called.
		⁽⁸⁾ Unrealized appreciation/(depreciation) on forward currency exchange contracts.
		⁽⁹⁾ The principal amount (par amount) for all debt securities is denominated in U.S. dollars, unless otherwise noted. £ represents Pound Sterling and € represents Euro.
		⁽¹⁰⁾ As defined in the 1940 Act, the Company is deemed to be an "Affiliated Investment" of the Company as the Company owns five percent or more of the portfolio company's securities.
		⁽¹¹⁾ As defined in the 1940 Act, the Company is deemed to "Control" this portfolio company as the Company either owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company.
		⁽¹²⁾ $50,014 of the total par amount for this security is at P + 3.75%.
		⁽¹³⁾ $127,912 of the total par amount for this security is at P + 4.00%.
		⁽¹⁴⁾ Non-Income Producing.
		⁽¹⁵⁾ Loan includes interest rate floor of 1.00%.
		⁽¹⁶⁾ Loan includes interest rate floor of 0.75%.
		⁽¹⁷⁾ Loan includes interest rate floor of 0.50%.
		⁽¹⁸⁾ Loan includes interest rate floor of 0.00%.
		⁽¹⁹⁾ Security valued using unobservable inputs (Level 3).
		⁽²⁰⁾ The Company holds non-controlling, affiliate interest in an aircraft-owning special purpose vehicle through this investment.
		⁽²¹⁾ Assets are pledged as collateral for the BCSF Revolving Credit Facility. See Note 6 "Borrowings".
		⁽²²⁾ The Company generally earns a higher interest rate on the "last out" tranche of debt, to the extent the debt has been allocated to "first out" and "last out" tranches, whereby the "first out" tranche will have priority as to the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder.

Bain Capital Specialty Finance, Inc. (the "Company") was formed on October 5, 2015 and commenced investment operations on October 13, 2016. The Company has elected to be treated and is regulated as a business development company (a "BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). In addition, for tax purposes the Company has elected to be treated, and intends to operate in a manner so as to continuously qualify, as a regulated investment company (a "RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"), commencing concurrently with its election to be treated as a BDC. The Company is externally managed by BCSF Advisors, LP (the "Advisor" or "BCSF Advisors"), our investment adviser that is registered with the Securities and Exchange Commission (the "SEC") under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The Advisor also provides the administrative services necessary for the Company to operate (in such capacity, the "Administrator" or "BCSF Advisors").

On November 19, 2018, the Company closed its initial public offering (the "IPO"), which was a Qualified IPO, issuing 7,500,000 shares of its common stock at a public offering price of $20.25 per share. Shares of common stock of the Company began trading on the New York Stock Exchange under the symbol "BCSF" on November 15, 2018.

The Company's primary focus is capitalizing on opportunities within its Advisor's Senior Direct Lending Strategy, which seeks to provide risk-adjusted returns and current income to its stockholders by investing primarily in middle-market companies with between $10.0 million and $150.0 million in EBITDA. The Company focuses on senior investments with a first or second lien on collateral and strong structures and documentation intended to protect the lender. The Company generally seeks to retain voting control in respect of the loans or particular classes of securities in which the Company invests through maintaining affirmative voting positions or negotiating consent rights that allow the Company to retain a blocking position. The Company may also invest in mezzanine debt and other junior securities and in secondary purchases of assets or portfolios, as described below. Investments are likely to include, among other things, (i) senior first lien, stretch senior, senior second lien, unitranche, (ii) mezzanine debt and other junior investments and (iii) secondary purchases of assets or portfolios that primarily consist of middle-market corporate debt. The Company may also invest, from time to time, in equity securities, distressed debt, debtor-in-possession loans, structured products, structurally subordinate loans, investments with deferred interest features, zero-coupon securities and defaulted securities.

The Company's consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The Company's consolidated financial statements and related financial information have been prepared pursuant to the requirements for reporting on Form 10-K and Regulation S-X. These consolidated financial statements reflect adjustments that in the opinion of the Company are necessary for the fair statement of the financial position and results of operations for the periods presented herein. The Company has determined it meets the definition of an investment company and follows the accounting and reporting guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC")

Topic 946 — Financial Services — Investment Companies. The functional currency of the Company is U.S. dollars and these consolidated financial statements have been prepared in that currency.

Certain prior period information has been reclassified to conform to the current period presentation. The reclassification has no effect on the Company's consolidated financial position or the consolidated results of operations as previously reported.

The Company will generally consolidate any wholly, or substantially, owned subsidiary when the design and purpose of the subsidiary is to act as an extension of the Company's investment operations and to facilitate the execution of the Company's investment strategy. Accordingly, the Company consolidated the results of its subsidiaries BCSF I, LLC, which was formed on September 20, 2017, and BCC Middle Market CLO 2018-1, LLC, which was formed on August 3, 2018, in its consolidated financial statements. All intercompany transactions and balances have been eliminated in consolidation. Since the Company is an investment company, portfolio investments held by the Company are not consolidated into the consolidated financial statements. The portfolio investments held by the Company (including its investments held by consolidated subsidiaries) are included on the consolidated statements of assets and liabilities as investments at fair value. The Company does not consolidate its interest in Antares Bain Capital Complete Financing Solution LLC (together with ABC Complete Financing Solution LLC, "ABCS"). See further description of the Company's investment in ABCS in Note 3.

The preparation of the consolidated financial statements in conformity with US GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and such differences could be material.

Investments for which market quotations are readily available are typically valued at such market quotations. Market quotations are obtained from an independent pricing service, where available. If a price cannot be obtained from an independent pricing service or if the independent pricing service is not deemed to be current with the market, certain investments held by the Company will be valued on the basis of prices provided by principal market makers. Generally investments marked in this manner will be marked at the mean of the bid and ask of the independent broker quotes obtained. To validate market quotations, the Company utilizes a number of factors to determine if the quotations are representative of fair value, including the source and number of quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value, subject at all times to the oversight and approval of the Board of Directors of the Company (the "Board"), based on, among other things, the input of the Advisor, the Company's audit committee of the Board (the "Audit Committee) and one or more independent third party valuation firms engaged by the Board.

With respect to unquoted securities, the Company will value each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Company will use the pricing indicated by the external event to corroborate and/or assist us in our valuation. 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

differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

With respect to investments for which market quotations are not readily available, the Advisor will undertake a multi-step valuation process, which includes among other things, the below:

In following this approach, the types of factors that are taken into account in the fair value pricing of investments include, as relevant, but are not limited to: comparison to publicly traded securities, including factors such as yield, maturity and measures of credit quality; the enterprise value of a portfolio company; the nature and realizable value of any collateral; the portfolio company's ability to make payments and its earnings and discounted cash flows; and the markets in which the portfolio company does business. In cases where an independent valuation firm provides fair valuations for investments, the independent valuation firm provides a fair valuation report, a description of the methodology used to determine the fair value and their analysis and calculations to support their conclusion. The Company determines the fair value of its investment in ABCS giving consideration to the assets and liabilities of ABCS, at fair value, including consideration of any necessary adjustments. The Company currently conducts this valuation process on a quarterly basis.

The Company applies ASC Topic 820, Fair Value Measurement ("ASC 820"), which establishes a framework for measuring fair value in accordance with US GAAP and required disclosures of fair value measurements. The fair value of a financial instrument is the amount that would be received in an orderly transaction between market participants at the measurement date. The Company determines the fair value of investments consistent with its valuation policy. The Company discloses the fair value of its investments in a hierarchy which prioritizes and ranks the level of market observability used in the determination of fair value. In accordance with ASC 820, these levels are summarized below:

A financial instrument's level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuations of Level 2 investments are generally based on

quotations received from pricing services, dealers or brokers. Consideration is given to the source and nature of the quotations and the relationship of recent market activity to the quotations provided.

Transfers between levels, if any, are recognized at the beginning of the reporting period in which the transfers occur. The Company evaluates the source of inputs used in the determination of fair value, including any markets in which the investments, or similar investments, are trading. When the fair value of an investment is determined using inputs from a pricing service (or principal market makers), the Company considers various criteria in determining whether the investment should be classified as a Level 2 or Level 3 investment. Criteria considered includes the pricing methodologies of the pricing services (or principal market makers) to determine if the inputs to the valuation are observable or unobservable, as well as the number of prices obtained and an assessment of the quality of the prices obtained. The level of an investment within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes "observable" requires significant judgment.

The value assigned to these investments is based upon available information and may fluctuate from period to period. In addition, it does not necessarily represent the amount that might ultimately be realized upon sale. Due to inherent uncertainty of valuation, the estimated fair value of investments may differ from the value that would have been used had a ready market for the security existed, and the difference could be material.

The Company records its investment transactions on a trade date basis. The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specified identification method. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Discount and premium to par value on investments acquired are accreted and amortized, respectively, into interest income over the life of the respective investment using the effective interest method. Loan origination fees, original issue discount and market discount or premium are capitalized and amortized against or accreted into interest income using the effective interest method or straight-line method, as applicable. For the Company's investments in revolving bank loans, the cost basis of the investment purchased is adjusted for the cash received for the discount on the total balance committed. The fair value is also adjusted for price appreciation or depreciation on the unfunded portion. As a result, the purchase of commitments not completely funded may result in a negative value until it is offset by the future amounts called and funded. Upon prepayment of a loan or debt security, any prepayment premium, unamortized upfront loan origination fees and unamortized discount are recorded as interest income.

Dividend income on preferred equity investments is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity investments is recorded on the record date for private portfolio companies and on the ex-dividend date for publicly traded portfolio companies. Distributions received from a limited liability company or limited partnership investment are evaluated to determine if the distribution should be recorded as dividend income or a return of capital.

Certain investments may have contractual payment-in-kind ("PIK") interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable. If at any point the Company believes PIK is not expected to be realized, the investment generating PIK will be placed on non-accrual status. Accrued PIK interest or dividends are

generally reversed through interest or dividend income, respectively, when an investment is placed on non-accrual status.

Certain structuring fees and amendment fees are recorded as other income when earned. Administrative agent fees received by the Company are recorded as other income when the services are rendered.

Loans or debt securities are placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest generally is reversed when a loan or debt security is placed on non-accrual status. Interest payments received on non-accrual loans or debt securities may be recognized as income or applied to principal depending upon management's judgment. Non-accrual loans and debt securities are restored to accrual status when past due principal and interest are paid and, in management's judgment, principal and interest payments are likely to remain current. The Company may make exceptions to this treatment if a loan has sufficient collateral value and is in the process of collection. As of December 31, 2018 and December 31, 2017, no securities had been placed on non-accrual status.

Distributions to common stockholders are recorded on the record date. The amount to be distributed, if any, is determined by the Board each quarter, and is generally based upon the earnings estimated by the Advisor. Distributions from net investment income and net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined in accordance with US GAAP. The Company may pay distributions to its stockholders in a year in excess of its investment company taxable income and net capital gain for that year and, accordingly, a portion of such distributions may constitute a return of capital for U.S. federal income tax purposes. This excess generally would be a tax-free return of capital in the period and generally would reduce the stockholder's tax basis in its shares. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent; they are charged or credited to paid-in capital in excess of par, accumulated undistributed net investment income or accumulated net realized gain (loss), as appropriate, in the period that the differences arise. Temporary and permanent differences are primarily attributable to differences in the tax treatment of certain loans and the tax characterization of income and non-deductible expenses.

The Company intends to timely distribute to its stockholders substantially all of its annual taxable income for each year, except that the Company may retain certain net capital gains for reinvestment and, depending upon the level of the Company's taxable income earned in a year, the Company may choose to carry forward taxable income for distribution in the following year and incur applicable U.S. federal excise tax. The specific tax characteristics of the Company's distributions will be reported to stockholders after the end of the calendar year. All distributions will be subject to available funds, and no assurance can be given that the Company will be able to declare such distributions in future periods.

The Company distributes net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually out of the assets legally available for such distributions. However, the Company may decide in the future to retain such capital gains for investment, incur a corporate-level tax on such capital gains, and elect to treat such capital gains as deemed distributions to stockholders.

The Company has adopted a dividend reinvestment plan that provides for the reinvestment of cash dividends and distributions. Prior to the IPO, stockholders who "opt in" to the Company's dividend reinvestment plan will have their cash dividends and distributions automatically reinvested in additional shares of the Company's common stock, rather than receiving cash dividends and distributions.

Subsequent to the IPO, stockholders who do not "opt out" of the Company's dividend reinvestment plan will have their cash dividends and distributions automatically reinvested in additional shares of the Company's common stock, rather than receiving cash dividends and distributions.

Organizational costs consist of primarily legal, incorporation and accounting fees incurred in connection with the organization of the Company. Organizational costs are expensed as incurred and are shown in the Company's consolidated statements of operations.

Offering costs consist primarily of fees and expenses incurred in connection with the offering of shares, legal, printing and other costs associated with the preparation and filing of applicable registration statements. Offering costs of the Company incurred prior to the commencement of operations have been recognized as a deferred charge and are amortized on a straight line basis over 12 months beginning on the date of commencement of operations and are shown in the Company's consolidated statements of operations. To the extent such expenses relate to equity offerings, these expenses are charged as a reduction of paid-in-capital upon each such offering.

Cash and cash equivalents consist of deposits held at custodian banks, and highly liquid investments, such as money market funds, with original maturities of three months or less. Cash and cash equivalents are carried at cost or amortized cost, which approximates fair value. The Company may deposit its cash and cash equivalents in financial institutions and, at certain times, such balances may exceed the Federal Deposit Insurance Corporation insurance limits. Cash equivalents are presented separately on the consolidated schedules of investments. Restricted cash is collected and held by the trustee who has been appointed as custodian of the assets securing certain of the Company's financing transactions.

The accounting records of the Company are maintained in U.S. dollars. The fair values of foreign securities, foreign cash and other assets and liabilities denominated in foreign currency are translated to U.S. dollars based on the current exchange rates at the end of each business day. Income and expenses denominated in foreign currencies are translated at current exchange rates when accrued or incurred. Unrealized gains and losses on foreign currency holdings and non-investment assets and liabilities attributable to the changes in foreign currency exchange rates are included in the net change in unrealized appreciation (depreciation) on foreign currency translation on the consolidated statements of operations. Net realized gains and losses on foreign currency holdings and non-investment assets and liabilities attributable to changes in foreign currency exchange rates are included in net realized gain (loss) on foreign currency transactions on the consolidated statements of operations. The portion of both realized and unrealized gains and losses on investments that result from changes in foreign currency exchange rates is not separately disclosed, but is included in net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments, respectively, on the consolidated statements of operations.

The Company may enter into forward currency exchange contracts to reduce the Company's exposure to foreign currency exchange rate fluctuations in the value of foreign currencies. A forward currency exchange contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The Company does not utilize hedge accounting and as such the Company recognizes the value of its derivatives at fair value on the consolidated statements of assets and liabilities with changes in the net unrealized appreciation (depreciation) on forward currency exchange contracts recorded on the consolidated statements of operations. Forward currency exchange contracts are valued using the prevailing forward currency exchange rate of the underlying currencies. Unrealized appreciation (depreciation) on forward currency exchange contracts are recorded on the consolidated statements of assets and liabilities by counterparty on a net basis, not taking into account collateral posted which is recorded separately, if applicable. Cash collateral maintained in accounts held by counterparties is included in collateral on forward currency exchange contracts on the consolidated statements of assets and liabilities. Notional amounts and the gross fair value of forward currency exchange contracts assets and liabilities are presented separately on the consolidated schedules of investments.

Changes in net unrealized appreciation (depreciation) are recorded on the consolidated statements of operations in net change in unrealized appreciation (depreciation) on forward currency exchange contracts. Net realized gains and losses are recorded on the consolidated statements of operations in net realized gain (loss) on forward currency exchange contracts. Realized gains and losses on forward currency exchange contracts are determined using the difference between the fair market value of the forward currency exchange contract at the time it was opened and the fair market value at the time it was closed or covered. Additionally, losses, up to the fair value, may arise if the counterparties do not perform under the contract terms.

The Company records costs related to issuance of revolving debt obligations as deferred financing costs. These costs are deferred and amortized using the straight-line method over the stated maturity life of the obligation. The Company records costs related to the issuance of term debt obligations as debt issuance costs. These costs are deferred and amortized using the effective interest method. These costs are presented as a reduction to the outstanding principal amount of the term debt obligations on the consolidated statements of assets and liabilities.

The Company has elected to be treated for U.S. federal income tax purposes as a RIC under the Code. So long as the Company maintains its status as a RIC, it will generally not be subject to corporate-level U.S. federal income taxes on any ordinary income or capital gains that it distributes at least annually as dividends to its stockholders. As a result, any tax liability related to income earned and distributed by the Company represents obligations of the Company's stockholders and will not be reflected in the consolidated financial statements of the Company.

The Company intends to comply with the applicable provisions of the Code pertaining to RICs and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. Accordingly, no provision for income taxes is required in the consolidated financial statements. 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 December 31, 2018 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 December 31, 2018. The character of income and gains

that we will distribute is determined in accordance with income tax regulations that may differ from GAAP. BCSF I, LLC and BCC Middle Market CLO 2018-1, LLC are disregarded entities for tax purposes and are consolidated with the tax return of the Company.

The Company evaluates tax positions taken or expected to be taken in the course of preparing its consolidated financial statements to determine whether the tax positions are "more-likely-than-not" to be sustained by the applicable tax authority. Tax positions not deemed to meet the "more-likely-than-not" threshold are reversed and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes, if any, are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. Management has analyzed the Company's tax positions, and has concluded that no liability for unrecognized tax benefits related to uncertain tax positions on returns to be filed by the Company for all open tax years should be recorded. The Company identifies its major tax jurisdiction as the United States, and the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months. As of December 31, 2018, the tax years that remain subject to examination is from the inception on October 5, 2015 forward.

In March 2017, the FASB issued ASU 2017-08, "Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. This new guidance is effective for fiscal years beginning after December 15, 2018, as well as for interim periods within those fiscal years. Early adoption is permitted. The Company does not believe these changes will have a material impact on its consolidated financial statements and disclosures.

In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 is part of the disclosure framework project and eliminates certain disclosure requirements for fair value measurements, requires entities to disclose new information, and modifies existing disclosure requirements. The new guidance is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact this change will have on its consolidated financial statements and disclosures.

The following table shows the composition of the investment portfolio, at amortized cost and fair value as of December 31, 2018 (with corresponding percentage of total portfolio investments):

The following table shows the composition of the investment portfolio, at amortized cost and fair value as of December 31, 2017 (with corresponding percentage of total portfolio investments):

The following table shows the composition of the investment portfolio by geographic region, at amortized cost and fair value as of December 31, 2018 (with corresponding percentage of total portfolio investments):

The following table shows the composition of the investment portfolio by geographic region, at amortized cost and fair value as of December 31, 2017 (with corresponding percentage of total portfolio investments):

	As of December 31, 2018

	Amortized Cost	Percentage of Total Portfolio		Fair Value	Percentage of Total Portfolio
Investment Vehicles ⁽¹⁾	$279,890,772		16.0%	$279,362,792		16.2%
High Tech Industries	205,845,620		11.7	202,999,747		11.7
Services: Business	137,816,914		7.9	135,398,202		7.8
Healthcare & Pharmaceuticals	127,104,300		7.3	125,744,586		7.3
Aerospace & Defense	120,069,733		6.8	121,411,334		7.0
Transportation: Cargo	85,197,021		4.9	83,514,319		4.8
Hotel, Gaming & Leisure	81,486,330		4.6	80,683,590		4.7
Consumer Goods: Non-Durable	73,809,233		4.2	71,439,678		4.1
Wholesale	64,529,679		3.7	63,050,944		3.6
Capital Equipment	44,054,103		2.5	42,795,894		2.5
Construction & Building	41,239,595		2.4	41,581,979		2.4
Retail	43,264,007		2.5	41,384,480		2.4
FIRE: Insurance ⁽²⁾	43,288,364		2.5	41,107,152		2.4
Service: Consumer	41,327,064		2.4	41,022,081		2.4
Containers, Packaging & Glass	40,213,180		2.3	38,694,275		2.2
Beverage, Food & Tobacco	38,154,943		2.2	35,612,284		2.1
Energy: Oil & Gas	31,540,815		1.8	31,195,498		1.8
Media: Diversified & Production	30,363,916		1.7	30,490,333		1.8
Automotive	29,482,446		1.7	29,337,032		1.7
Energy: Electricity	22,368,502		1.3	22,283,631		1.3
Forest Products & Paper	22,514,526		1.3	21,902,974		1.3
Media: Broadcasting & Subscription	21,868,277		1.2	20,944,540		1.2
Media: Advertising, Printing & Publishing	19,635,378		1.1	19,730,774		1.1
Chemicals, Plastics & Rubber	19,146,824		1.1	19,511,146		1.1
Consumer Goods: Durable	17,097,312		0.9	17,247,902		1.0
Environmental Industries	16,488,981		0.9	16,482,011		1.0
Telecommunications	15,239,284		0.9	15,121,027		0.9
Banking	13,259,712		0.7	13,234,599		0.8
FIRE: Real Estate ⁽²⁾	10,713,530		0.6	10,650,360		0.6
Utilities: Electric	12,483,046		0.7	10,310,670		0.6
FIRE: Finance ⁽²⁾	3,623,568		0.2	3,559,837		0.2

Total	$1,753,116,975		100.0%	$1,727,805,671		100.0%

	As of December 31, 2017

	Amortized Cost		Percentage of Total Portfolio		Fair Value		Percentage of Total Portfolio
Investment Vehicles⁽¹⁾	$	178,052,288		21.7%	$	178,409,807		21.4%
High Tech Industries		105,919,464		12.9		106,185,758		12.8
Healthcare & Pharmaceuticals		68,318,089		8.3		68,687,910		8.3
Services: Business		60,000,491		7.3		60,598,544		7.3
Aerospace & Defense		44,021,059		5.4		44,898,545		5.4
Beverage, Food & Tobacco		35,301,640		4.3		35,673,127		4.3
Capital Equipment		31,499,131		3.8		32,104,902		3.9
Wholesale		27,025,660		3.3		27,187,662		3.3
Energy: Oil & Gas		26,472,225		3.2		26,957,462		3.2
Containers, Packaging & Glass		25,227,891		3.1		25,329,872		3.0
Automotive		24,194,235		3.0		24,512,807		2.9
Media: Diversified & Production		20,524,304		2.5		21,886,325		2.6
Consumer Goods: Non-Durable		20,925,794		2.6		21,241,067		2.6
Environmental Industries		19,064,227		2.3		20,256,052		2.4
Construction & Building		15,970,504		1.9		17,521,014		2.1
Consumer Goods: Durable		15,105,349		1.8		15,118,365		1.8
Media: Broadcasting & Subscription		14,927,621		1.8		15,019,941		1.8
Retail		14,389,584		1.8		14,416,081		1.7
Telecommunications		13,476,372		1.6		13,778,898		1.7
Insurance		12,192,503		1.5		12,238,811		1.5
Real Estate		10,644,272		1.3		10,863,204		1.3
Transportation: Cargo		10,508,551		1.3		10,734,350		1.3
Chemicals, Plastics & Rubber		8,441,194		1.0		8,996,750		1.1
Utilities: Electric		8,478,000		1.0		8,138,880		1.0
Media: Advertising, Printing & Publishing		5,918,148		0.7		6,020,680		0.7
Hotel, Gaming & Leisure		4,664,328		0.6		4,801,257		0.6
Banking		—		0.0		—		0.0
Transportation: Consumer		—		0.0		—		0.0

Total	$	821,262,924		100.0%	$	831,578,071		100.0%

The Company has entered into a limited liability company agreement with Antares Midco Inc. ("Antares") to invest in ABC Complete Financing Solution LLC, which makes investments through its subsidiary, Antares Bain Capital Complete Financing Solution LLC (together with ABC Complete Financing Solution LLC, "ABCS"). ABCS, an unconsolidated Delaware limited liability company, was formed on September 27, 2017 and commenced operations on November 29, 2017. ABCS' principal purpose is to make investments, primarily in senior secured unitranche loans. The Company records its investment in ABCS at fair value. Distributions of income received from ABCS, if any, are recorded as dividend income from controlled investments in the consolidated statements of operations. Distributions

received from ABCS in excess of income earned at ABCS, if any, are recorded as a return of capital and reduce the amortized cost of controlled affiliate investments.

The Company and Antares, as members of ABCS, have agreed to contribute capital up to (subject to the terms of their agreement) $950.0 million in aggregate to purchase equity interests in ABCS, with the Company and Antares contributing up to $425.0 million and $525.0 million, respectively. Funding of such commitments generally requires the consent of both Antares Credit Opportunities Manager LLC and the Advisor on behalf of Antares and the Company, respectively. ABCS is capitalized with capital contributions from its members on a pro-rata basis based on their maximum capital contributions as transactions are funded after they have been approved.

Investment decisions of ABCS require the consent of both the Advisor and Antares Credit Opportunities Manager LLC, as representatives of the Company and Antares, respectively. Each of the Advisor and Antares source investments for ABCS.

As of December 31, 2018, ABCS had the following maximum capital contributions, contributions and unfunded capital contributions from its members.

As of December 31, 2017, ABCS had the following maximum capital contributions, contributions and unfunded capital contributions from its members.

directly. Below is a summary of ABCS's portfolio, followed by a portfolio listing as of December 31, 2018 and December 31, 2017:

Below is certain summarized financial information for ABCS as of and for the year ended December 31, 2018 and for the period from November 29, 2017 through December 31, 2017:

ABCS is obligated to pay sourcing fees to the applicable member affiliate which sources the deal. For the year ended December 31, 2018 and for the period from November 29, 2017 through December 31, 2017 the Company did not earn any sourcing fees.

Portfolio Company		Interest Rate		Principal/ Par Amount		Carrying Value		Fair Value ⁽²⁾

Investments
Corporate Debt
Delayed Draw Term Loan
Chemicals, Plastics & Rubber
PRCC Holdings, Inc.	L+ 6.50%	9.02%	2/1/2021	$	11,878,108	$	11,878,108	$	11,878,108

Total Chemicals, Plastics & Rubber							11,878,108		11,878,108
Consumer Goods: Non-Durable
Solaray, LLC	L+ 5.75%	8.49%	9/9/2023	$	26,680,389		26,387,900		26,546,987
Solaray, LLC ⁽³⁾	-	-	9/9/2023	$	-		-		(33,132	)

Total Consumer Goods: Non-Durable							26,387,900		26,513,855
FIRE: Insurance
Margaux Acquisition Inc. ⁽³⁾	-	-	12/19/2024	$	-		-		(417,349	)

Total FIRE: Insurance							-		(417,349	)
High Tech Industries
Element Buyer, Inc. ⁽³⁾	-	-	7/19/2025	$	-		-		(133,001	)
Element Buyer, Inc.	L+ 5.25%	7.76%	7/19/2025	$	7,600,080		7,473,201		7,543,079

Total High Tech Industries							7,473,201		7,410,078
Media: Advertising, Printing & Publishing
Ansira Holdings, Inc.	L+ 5.75%	8.27%	12/20/2022	$	2,478,122		2,471,720		2,459,537
Ansira Holdings, Inc. ⁽³⁾	-	-	12/20/2022	$	-		-		(56,379	)

Total Media: Advertising, Printing & Publishing							2,471,720		2,403,158
Services: Consumer
McKissock, LLC	L+ 5.75%	8.55%	8/5/2021	$	2,605,055		2,583,309		2,605,055

Total Services: Consumer							2,583,309		2,605,055
Transportation: Consumer
Direct Travel, Inc.	L+ 6.50%	9.12%	12/1/2021	$	1,672,019		1,669,299		1,672,019
Direct Travel, Inc.	-	-	12/1/2021	$	-		-		-

Total Transportation: Consumer							1,669,299		1,672,019

Total Delayed Draw Term Loan						$	52,463,537	$	52,064,924



First lien senior secured loan
Aerospace & Defense
API Technologies Corp.	L+ 5.75%	8.27%	4/20/2024	$	117,860,616		116,559,417		117,565,964

Total Aerospace & Defense							116,559,417		117,565,964
Capital Equipment
Tidel Engineering, L.P.	L+ 6.25%	9.05%	3/1/2024	$	86,441,743		86,415,211		86,441,743

Total Capital Equipment							86,415,211		86,441,743
Chemicals, Plastics & Rubber
AP Plastics Group, LLC	L+ 5.25%	7.60%	8/1/2022	$	48,397,584		48,348,003		47,913,608
PRCC Holdings, Inc.	L+ 6.50%	9.02%	2/1/2021	$	73,813,402		73,813,402		73,813,402

Total Chemicals, Plastics & Rubber							122,161,405		121,727,010
Construction & Building
Profile Products LLC	L+ 5.75%	8.54%	12/20/2024	$	78,832,202		77,613,584		77,255,558

Total Construction & Building							77,613,584		77,255,558
Consumer Goods: Durable
Home Franchise Concepts, Inc.	L+ 5.00%	7.43%	7/9/2024	$	69,090,608		68,773,182		68,399,702
Stanton Carpet Corp. ⁽⁷⁾	L+ 5.50%	8.04%	11/21/2022	$	60,231,137		60,179,302		59,628,826

Total Consumer Goods: Durable							128,952,484		128,028,528
Consumer Goods: Non-Durable
Solaray, LLC	L+ 5.75%	8.49%	9/9/2023	$	96,230,150		95,175,207		95,748,999

Total Consumer Goods: Non-Durable							95,175,207		95,748,999
Energy: Oil & Gas
Amspec Services, Inc.	L+ 5.75%	8.55%	7/2/2024	$	90,025,323		88,985,892		86,874,436

Total Energy: Oil & Gas							88,985,892		86,874,436
FIRE: Insurance
Margaux Acquisition Inc.	L+ 6.00%	8.80%	12/19/2024	$	65,124,823		63,765,565		63,822,327
Margaux UK Finance Limited	GBP LIBOR+ 6.00%	7.00%	12/19/2024	£	17,355,633		21,651,078		21,665,453

Total FIRE: Insurance							85,416,643		85,487,780
High Tech Industries
Caliper Software, Inc.	L+ 5.50%	8.02%	11/28/2025	$	68,181,667		67,508,387		67,158,942
Element Buyer, Inc.	L+ 5.25%	7.78%	7/19/2025	$	85,287,148		83,863,326		84,647,494

Total High Tech Industries							151,371,713		151,806,436


Media: Advertising, Printing & Publishing
Ansira Holdings, Inc.	L+ 5.75%	8.27%	12/20/2022	$	81,011,099		80,874,067		80,403,516
Cruz Bay Publishing, Inc. ⁽⁵⁾	L+ 5.75%	8.30%	6/6/2019	$	11,417,703		11,417,703		11,417,703
Cruz Bay Publishing, Inc. ⁽⁶⁾	L+ 6.75%	9.57%	6/6/2019	$	3,812,900		3,812,900		3,812,900

Total Media: Advertising, Printing & Publishing							96,104,670		95,634,119
Media: Diversified & Production
Efficient Collaborative Retail Marketing Company, LLC	L+ 6.75%	9.55%	6/15/2022	$	22,799,950		22,721,506		22,571,950
Efficient Collaborative Retail Marketing Company, LLC	L+ 6.75%	9.56%	6/15/2022	$	33,741,229		33,241,212		33,403,817

Total Media: Diversified & Production							55,962,718		55,975,767
Retail
Batteries Plus Holding Corporation	L+ 6.75%	9.27%	7/6/2022	$	68,156,203		68,156,203		68,156,203

Total Retail							68,156,203		68,156,203
Services: Business
TEI Holdings Inc.	L+ 6.00%	8.80%	12/20/2023	$	118,589,052		117,725,743		117,403,161

Total Services: Business							117,725,743		117,403,161
Services: Consumer
McKissock, LLC	L+ 5.75%	8.55%	8/5/2021	$	8,071,352		8,003,974		8,071,352
McKissock, LLC	L+ 5.75%	8.55%	8/5/2021	$	42,144,017		41,792,208		42,460,097

Total Services: Consumer							49,796,182		50,531,449
Transportation: Consumer
Direct Travel, Inc.	L+ 6.50%	9.30%	12/1/2021	$	112,153,232		111,788,965		112,153,232

Total Transportation: Consumer							111,788,965		112,153,232

Wholesale
Abracon Group Holding, LLC. ⁽⁴⁾	L+ 5.75%	8.56%	7/18/2024	$	81,496,608		80,367,292		80,681,642
Aramsco, Inc.	L+ 5.25%	7.77%	8/28/2024	$	50,342,871		49,393,889		48,958,442

Total Wholesale							129,761,181		129,640,084

Total First Lien Senior Secured						$	1,581,947,218	$	1,580,430,469



Total Corporate Debt						$	1,634,410,755	$	1,632,495,393



Total Investments						$	1,634,410,755	$	1,632,495,393

Portfolio Company	Spread Above Index ⁽¹⁾				Principal/ Par Amount		Amortized Cost		Fair Value ⁽²⁾

Investments
Corporate Debt
Delayed Draw Term Loan
Capital Equipment
Winchester Electronics Corporation	L + 6.50%	8.17	%	6/30/2022	$	11,294,304	$	11,294,304	$	11,294,304

Total Capital Equipment								11,294,304		11,294,304
Chemicals, Plastics & Rubber
PRCC Holdings, Inc. ⁽⁶⁾	L + 6.50%	8.08	%	2/1/2021	$	12,191,184		12,191,184		12,191,184

Total Chemicals, Plastics & Rubber								12,191,184		12,191,184
Consumer Goods: Non-Durable
Solaray, LLC	L + 6.50%	8.07	%	9/9/2023	$	15,496,531		15,496,531		15,496,531

Total Consumer Goods: Non-Durable								15,496,531		15,496,531
Media: Advertising, Printing & Publishing
Ansira Holdings, Inc.	L + 6.50%	8.19	%	12/20/2022	$	6,228,599		6,228,599		6,228,599

Total Media: Advertising, Printing & Publishing								6,228,599		6,228,599
Services: Business
McKissock, LLC	L + 6.00%	7.94	%	8/5/2019	$	2,631,338		2,631,338		2,631,338

Total Services: Business								2,631,338		2,631,338
Transportation: Consumer
Direct Travel, Inc.	L + 6.50%	8.01	%	12/1/2021	$	7,654,382		7,654,382		7,654,382

Total Transportation: Consumer								7,654,382		7,654,382

Total Delayed Draw Term Loan							$	55,496,338	$	55,496,338



First Lien Senior Secured Loan
Banking
Tidel Engineering, L.P.	L + 6.25%	7.94	%	3/1/2024	$	80,924,185		80,924,185		80,924,185

Total Banking								80,924,185		80,924,185
Capital Equipment
Winchester Electronics Corporation	L + 6.50%	8.19	%	6/30/2022	$	75,343,060		75,272,510		75,272,510

Total Capital Equipment								75,272,510		75,272,510
Chemicals, Plastics & Rubber
AP Plastics Group, LLC ⁽³⁾	L + 6.25%	7.63	%	8/1/2022	$	50,972,104		50,972,104		50,972,104
PRCC Holdings, Inc. ⁽⁵⁾	L + 6.50%	8.08	%	2/1/2021	$	75,780,714		75,780,714		75,780,714

Total Chemicals, Plastics & Rubber								126,752,818		126,752,818
Construction & Building
Stanton Carpet Corp. ⁽⁷⁾	L + 6.50%	8.07	%	11/21/2022	$	65,131,658		65,131,658		65,131,658

Total Construction & Building								65,131,658		65,131,658
Consumer Goods: Non-Durable
Solaray, LLC	L + 6.50%	8.00	%	9/9/2023	$	86,461,350		86,179,604		86,179,604

Total Consumer Goods: Non-Durable								86,179,604		86,179,604
Media: Advertising, Printing & Publishing
Ansira Holdings, Inc.	L + 6.50%	8.19	%	12/20/2022	$	76,608,806		76,608,806		76,608,806
Cruz Bay Publishing, Inc.	L + 5.75%	7.13	%	6/6/2019	$	12,170,869		12,170,869		12,170,869
Cruz Bay Publishing, Inc. ⁽⁴⁾	L + 6.75%	8.47	%	6/6/2019	$	4,064,416		4,064,416		4,064,416

Total Media: Advertising, Printing & Publishing								92,844,091		92,844,091
Media: Diversified & Production
Efficient Collaborative Retail Marketing Company, LLC	L + 6.75%	8.44	%	6/15/2022	$	35,840,087		35,840,087		35,840,087

Total Media: Diversified & Production								35,840,087		35,840,087
Retail
Batteries Plus Holding Corporation	L + 6.50%	8.32	%	7/6/2022	$	68,677,806		68,677,806		68,677,806

Total Retail								68,677,806		68,677,806
Services: Business
McKissock, LLC	L + 6.00%	7.94	%	8/5/2019	$	8,152,786		8,152,786		8,152,786
McKissock, LLC	L + 6.00%	7.94	%	8/5/2019	$	17,100,285		17,100,285		17,100,285
TEI Holdings Inc. ⁽⁸⁾	L + 6.50%	8.13	%	12/20/2023	$	74,173,614		74,173,614		74,173,614

Total Services: Business								99,426,685		99,426,685
Transportation: Cargo
ENC Holding Corporation	L + 6.50%	8.05	%	2/8/2023	$	71,062,151		71,062,151		71,062,151

Total Transportation: Cargo								71,062,151		71,062,151

The following table presents fair value measurements of investments, by major class, cash equivalents and derivatives as of December 31, 2018, according to the fair value hierarchy:

The following table presents fair value measurements of investments, by major class, cash equivalents and derivatives as of December 31, 2017, according to the fair value hierarchy:

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended December 31, 2018:

Transfers between levels, if any, are recognized at the beginning of the period in which transfers occur. For the year ended December 31, 2018, transfers from Level 2 to Level 3 were primarily due to decreased price transparency. For the year ended December 31, 2018, transfers from Level 3 to Level 2 were primarily due to increased price transparency.

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended December 31, 2017:

Transfers between levels, if any, are recognized at the beginning of the reporting period in which transfers occur. For the year ended December 31, 2017, transfers to Level 3 were primarily due to decreased price transparency.

ASC 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. Disclosure of this information is not required in circumstances where a valuation (unadjusted) is obtained from a third-party pricing service and the information regarding the unobservable inputs is not reasonably

available to the Company and as such, the disclosures provided below exclude those investments valued in that manner.

The Company used the income approach and market approach to determine the fair value of certain Level 3 assets as of December 31, 2018. The significant unobservable input used in the income approach is the comparative yield. The comparative yield is used to discount the estimated future cash flows expected to be received from the underlying investment. An increase/decrease in the comparative yield would result in a decrease/increase, respectively, in the fair value. The significant unobservable input used in the market approach is the comparable company multiple. The multiple is used to estimate the enterprise value of the underlying investment. An increase/decrease in the multiple would result in an increase/decrease, respectively, in the fair value.

The valuation techniques and significant unobservable inputs used in Level 3 fair value measurements of assets as of December 31, 2017 were as follows:

The Company used the income approach and market approach to determine the fair value of certain Level 3 assets as of December 31, 2017. The significant unobservable input used in the income approach is the comparative yield. The comparative yield is used to discount the estimated future cash flows expected to be received from the underlying investment. An increase/decrease in the comparative yield would result in a decrease/increase, respectively, in the fair value. The significant unobservable input used in the market approach is the comparable company multiple. The multiple is used to estimate the enterprise value of the underlying investment. An increase/decrease in the multiple would result in an increase/decrease, respectively, in the fair value.

The fair value of the BCSF Revolving Credit Facility (as defined in Note 6), which is categorized as Level 3 within the fair value hierarchy as of December 31, 2018 and December 31, 2017, approximates the carrying value of such facility. The fair values of the 2018-1 Notes (as defined in Note 6), which are categorized as Level 3 within the fair value hierarchy as of December 31, 2018, approximate the carrying value of such facilities.

The Company has entered into an investment advisory agreement as of October 6, 2016 (the "Investment Advisory Agreement") with the Advisor, pursuant to which the Advisor manages the Company's investment program and related activities.

The Company pays the Advisor a base management fee (the "Base Management Fee"), accrued and payable quarterly in arrears. The Base Management Fee is calculated at an annual rate of 1.50% (0.375% per quarter) of the average value of the Company's gross assets (excluding cash and cash equivalents, but including assets purchased with borrowed amounts) at the end of each of the two most recently completed calendar quarters (and, in the case of our first quarter, our gross assets as of such quarter-end). Such amount shall be appropriately adjusted (based on the actual number of days elapsed relative to the total number of days in such calendar quarter) for any share issuance or repurchases by the Company during a calendar quarter. The Base Management Fee for any partial quarter will be appropriately prorated.

The Advisor, however, has contractually waived its right to receive the Base Management Fee in excess of 0.75% of the aggregate gross assets excluding cash (including capital drawn to pay the Company's expenses) during any period prior to the IPO. Additionally, for the period from the date of the IPO through December 31, 2018, the Advisor has voluntarily waived its right to receive the Base Management Fee in excess of 0.75%. The Advisor was not permitted to recoup any waived amounts. In previous filings, management fees were presented on a net basis.

For the years ended December 31, 2018, 2017, and 2016 Management fees were $17.5 million, $5.9 million, and $0.4 million, respectively. For the year ended December 31, 2018, $7.3 million was contractually waived and $1.5 million was voluntarily waived. For the year ended December 31, 2017, $2.9 million was contractually waived. For the year ended December 31, 2016, $0.2 million was contractually waived.

As of December 31, 2018 and December 31, 2017, $3.0 million and $1.2 million remained payable, respectively.

As of December 31, 2018, the incentive fee consists of two parts that are determined independently of each other such that one component may be payable even if the other is not.

The first part, the income incentive fee, will be calculated and payable quarterly in arrears and equals:

The second part, the capital gains incentive fee, will be determined and payable in arrears as of the end of each fiscal year, and equals:

Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the Base Management Fee, any expenses payable under the Administration Agreement, and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature such as market discount, original issue discount ("OID"), debt instruments with PIK interest, preferred stock with PIK dividends and zero-coupon securities, accrued income that the Company has not yet received in cash.

Pre-incentive fee net investment income does not include any realized or unrealized capital gains or losses or unrealized capital appreciation or depreciation. Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter where the Company incurs a loss. For example, if the Company receives pre-incentive fee net investment income in excess of the Hurdle rate for a quarter, the Company will pay the applicable incentive fee even if the Company has incurred a loss in that quarter due to realized and unrealized capital losses.

Pre-incentive fee net investment income will be compared to a "Hurdle Amount" equal to the product of (i) the "hurdle rate" of 1.5% per quarter (6% annualized) and (ii) the Company's net assets

(defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter. If market interest rates rise, the Company may be able to invest our funds in debt instruments that provide for a higher return, which would increase our pre-incentive fee net investment income and make it easier for the Advisor to surpass the fixed hurdle rate and receive an incentive fee based on such net investment income. Our pre-incentive fee net investment income used to calculate this part of the incentive fee is also included in the amount of our total assets (other than cash but including assets purchased with borrowed amounts) used to calculate the Base Management Fee.

Prior to the occurrence of the IPO, the Company paid the income incentive fee in each calendar quarter as follows:

On and after the IPO, the Company will pay the income incentive fee in each calendar quarter as follows:

These calculations are appropriately pro-rated for any period of less than three months and adjusted for any share issuances or repurchases by the Company during the current quarter. Because the IPO occurred on a date other than the first day of a calendar quarter, the income incentive fee shall be calculated for the fourth quarter 2018 at a weighted rate calculated based on the fee rates applicable before and after the IPO based on the number of days in the calendar quarter before and after the IPO.

For year ended December 31, 2018, the Company incurred $9.7 million of income incentive fees (before waivers), which are included in incentive fees on the consolidated statements of operations. The Advisor has voluntarily waived $1.9 million of the income incentive fees earned by the Advisor during the year ended December 31, 2018. Such income incentive fee waiver is irrevocable and such waived income incentive fees will not be subject to recoupment in future periods. This income incentive fee waiver does not impact any income incentive fees earned by the Advisor in future periods.

As a result of the income incentive fee waivers, the Company incurred $7.8 million of income incentive fees (after waivers) for the year ended December 31, 2018, respectively. The Company did not incur any income incentive fees for the years ended December 31, 2017 and 2016.

As of December 31, 2018 and December 31, 2017, there was $3.3 million and $0.00 million, respectively, related to the income incentive fee accrued in incentive fee payable on the consolidated statements of assets and liabilities.

On October 11, 2018, the Board approved, subject to completion of the IPO, an Amended and Restated Investment Advisory Agreement. Beginning with the calendar quarter that commenced January 1, 2019, this Amended and Restated Investment Advisory Agreement incorporates (i) a three-year lookback provision and (ii) a cap on quarterly income incentive fee payments based on net realized or unrealized capital loss, if any, during the applicable three-year lookback period.

The second part of the incentive fee is a capital gains incentive fee that will be determined and payable in arrears in cash as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals (i) 15% of our realized capital gains as of the end of the fiscal year prior to the IPO, and (ii) 17.5% of our realized capital gains as of the end of the fiscal year after the IPO. In determining the capital gains incentive fee payable to the Advisor, the Company calculates the cumulative aggregate realized capital gains and cumulative aggregate realized capital losses since our inception, and the aggregate unrealized capital depreciation as of the date of the calculation, as applicable, with respect to each of the investments in our portfolio. For this purpose, cumulative aggregate realized capital gains, if any, equals the sum of the differences between the net sales price of each investment, when sold, and the cost of such investment. Cumulative aggregate realized capital losses equals the sum of the amounts by which the net sales price of each investment, when sold, is less than the cost of such investment. Aggregate unrealized capital depreciation equals the sum of the difference, if negative, between the valuation of each investment as of the applicable calculation date and the cost of such investment. At the end of the applicable year, the amount of capital gains that serves as the basis for our calculation of the capital gains incentive fee equals the cumulative aggregate realized capital gains less cumulative aggregate realized capital losses, less aggregate unrealized capital depreciation, with respect to our portfolio of investments. If this number is positive at the end of such year, then the capital gains incentive fee for such year will equal 15% before the IPO or 17.5% after the IPO, as applicable, of such amount, less the aggregate amount of any capital gains incentive fees paid in respect of our portfolio in all prior years.

IPO equal to the product obtained by multiplying (a) the actual aggregate amount of previously paid capital gains incentive fees for all periods prior to the IPO by (b) the percentage obtained by dividing (x) 17.5% by (y) 15%. In the event that the Investment Advisory Agreement shall terminate as of a date that is not a fiscal year end, the termination date shall be treated as though it were a fiscal year end for purposes of calculating and paying a capital gains incentive fee.

There was no capital gains incentive fee payable to the Advisor under the Investment Advisory Agreement as of December 31, 2018 and December 31, 2017.

US GAAP requires that the incentive fee accrual consider the cumulative aggregate unrealized capital appreciation of investments or other financial instruments in the calculation, as an incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Advisory Agreement ("GAAP Incentive Fee"). There can be no assurance that such unrealized appreciation will be realized in the future. Accordingly, such fee, as calculated and accrued, would not necessarily be payable under the Investment Advisory Agreement, and may never be paid based upon the computation of incentive fees in subsequent period.

For the year ended December 31, 2018 there was a reduction of $1.0 million in incentive fees related to the GAAP incentive fee, which is included in incentive fees on the consolidated statements of operations. For the years ended December 31, 2017 and 2016, the Company incurred $0.8 million and $0.3 million, respectively, of incentive fees related to the GAAP Incentive Fee which is included in incentive fee on the consolidated statements of operations. As of December 31, 2018 and December 31, 2017, there was $0.0 million and $1.0 million related to the GAAP Incentive Fee accrued in incentive fee payable on the consolidated statements of assets and liabilities.

The Company has entered into an administration agreement (the "Administration Agreement") with the Advisor (in such capacity, the "Administrator"), pursuant to which the Administrator will provide the administrative services necessary for us to operate, and the Company will utilize the Administrator's office facilities, equipment and recordkeeping services. Pursuant to the Administration Agreement, the Administrator has agreed to oversee our public reporting requirements and tax reporting and monitor our expenses and the performance of professional services rendered to us by others. The Administrator has also hired a sub-administrator to assist in the provision of administrative services. The Company may reimburse the Administrator for its costs and expenses and our allocable portion of overhead incurred by it in performing its obligations under the Administration Agreement, including compensation paid to or compensatory distributions received by our officers (including our Chief Compliance Officer and Chief Financial Officer) and any of their respective staff who provide services to us, operations staff who provide services to us, and internal audit staff, if any, to the extent internal audit performs a role in our Sarbanes-Oxley internal control assessment. Our allocable portion of overhead will be determined by the Administrator, which expects to use various methodologies such as allocation based on the percentage of time certain individuals devote, on an estimated basis, to the business and affairs of the Company, and will be subject to oversight by the Board. The sub-administrator is paid its compensation for performing its sub-administrative services under the sub-administration agreement. The Company incurred expenses related to the sub-administrator of $0.8 million, $0.5 million and $0.1 million for the years ended December 31, 2018, 2017 and 2016, respectively, which is included in other general and administrative expenses on the consolidated statement of operations. The Administrator will not seek reimbursement in the event that any such reimbursements would cause any distributions to our stockholders to constitute a return of capital. In addition, the Administrator is permitted to delegate its duties under the Administration Agreement to affiliates or third parties and the Company will reimburse the expenses of these parties incurred and paid by the Advisor on our behalf.

We may invest alongside our affiliates, 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 initially on August 23, 2016, as amended on March 23, 2018 (the "Order"). 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 our or its 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's approved criteria. In certain situations where co-investment with one or more funds managed by the Advisor or its affiliates is not covered by the Order, the personnel of the Advisor or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on 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.

Prior to the IPO, the Advisor made commitments of $10.8 million to the Company as of December 31, 2018 and December 31, 2017, of which $7.8 million and $4.8 million had been called by the Company as of December 31, 2018 and December 31, 2017, respectively. As of December 31, 2018 and December 31, 2017, the Advisor held 389,476.18 and 241,527.73 shares of the Company's common stock, respectively. An affiliate of the Advisor is the investment manager to certain pooled investment vehicles which are investors in the Company. Collectively, these investors had made commitments to the Company of $555.3 million as of December 31, 2018 and December 31, 2017 of which $388.7 million and $222.1 million, respectively, had been called by the Company as of December 31, 2018 and December 31, 2017, respectively. These investors held 19,306,284.66 and 11,070,200.25 shares of the Company at December 31, 2018 and December 31, 2017, respectively.

All outstanding commitments were cancelled due the completion of the IPO on November 15, 2018.

Transactions during the year ended December 31, 2018 in which the issuer was either an Affiliated Person or an Affiliated Person a portfolio company that the Company is deemed to Control are as follows:

Portfolio Company	Principal/ Par Amount/ Shares		Fair Value as of December 31, 2017		Gross Additions		Gross Reductions			Change in Unrealized Gains (Losses)			Realized Gains (Losses)		Fair Value as of December 31, 2018		Dividend and Interest Income		Other Income

Non-Controlled/affiliate investment
ADT Pizza, LLC, Equity Interest ⁽¹⁾	$	6,720,000	$	—	$	6,720,000	$	—		$	—		$	—	$	6,720,000	$	—	$	—

Total Non-Controlled/affiliate investment	$	6,720,000	$	—-	$	6,720,000	$	—		$	—		$	—	$	6,720,000	$	—	$	—

Controlled affiliate investment
Antares Bain Capital Complete Financing Solution LLC, Investment Vehicle	$	279,890,772	$	178,409,807	$	103,148,743	$	(1,310,259	)	$	(885,499	)	$	—	$	279,362,792	$	24,491,466	$	—
BCC Jetstream Holdings Aviation (On II), LLC, Unfunded Commitment ⁽¹⁾		—		—		—		—			—			—		—		—		—
BCC Jetstream Holdings Aviation (On II), LLC, Equity Interest		731,387		424,261		407,173		—			411,782			—		1,243,216		30,083		13
BCC Jetstream Holdings Aviation (On II), LLC, First Lien Senior Secured Loan		4,162,757		1,837,216		2,325,541		—			—			—		4,162,757		312,132		—
BCC Jetstream Holdings Aviation (Off I), LLC, Equity Interest		11,862,614		7,838,831		4,459,109		—			1,181,535			—		13,479,475		865,914		16

Total Controlled affiliate investment	$	296,647,530	$	188,510,115	$	110,340,566	$	(1,310,259	)	$	707,818		$	—	$	298,248,240	$	25,699,595	$	29

Total	$	303,367,530	$	188,510,115	$	117,060,566	$	(1,310,259	)	$	707,818		$	—	$	304,968,240	$	25,699,595	$	29

Transactions during the year ended December 31, 2017 in which the issuer was both an Affiliated Person, as defined in the 1940 Act, and a portfolio company that the Company is deemed to Control are as follows:

In accordance with applicable SEC staff guidance and interpretations, as a BDC, with certain exceptions, the Company was, as of December 31, 2018, allowed to borrow amounts such that its asset coverage ratio, as defined in the 1940 Act, was at least 200% after such borrowing. As of December 31, 2018 and December 31, 2017, the Company's asset coverage ratio based on aggregated borrowings outstanding was 257% and 212%, respectively.

The Company's outstanding borrowings as of December 31, 2018 and December 31, 2017 were as follows:

The combined weighted average interest rate (excluding deferred upfront financing costs and unused fees) of the aggregate borrowings outstanding for the years ended December 31, 2018 and year ended December 31, 2017 were 4.31% and 3.40%, respectively.

The following table shows the contractual maturities of our debt obligations as of December 31, 2018:

we terminate the commitments under the SMBC Revolving Credit Facility; and (d) 45 days prior to the earlier of (1) the date upon which the commitment period under the subscription agreements terminates and (2) the date upon which the ability to make capital calls and receive capital contributions otherwise terminates.

For the years ended December 31, 2018, 2017 and 2016, the components of interest expense related to the SMBC Revolving Credit Facility were as follows:

For the years ended December 31, 2018, 2017 and 2016, the components of interest expense related to the BCSF Revolving Credit Facility were as follows:

On September 28, 2018 (the "2018-1 Closing Date"), the Company, through BCC Middle Market CLO 2018-1 LLC (the "2018-1 Issuer"), a Delaware limited liability company and a wholly owned and consolidated subsidiary of the Company, completed its $451.2 million term debt securitization (the "CLO Transaction"). The notes issued in connection with the CLO Transaction (the "2018-1 Notes") are secured by a diversified portfolio of the Issuer consisting primarily of middle market loans and participation interests in middle market loans, the majority of which are senior secured loans (the "2018-1 Portfolio"). At the 2018-1 Closing Date, the 2018-1 Portfolio was comprised of assets transferred from the Company and its consolidated subsidiaries. All transfers were eliminated in consolidation and there were no realized gains or losses recognized in the CLO Transaction.

The CLO Transaction was executed through a private placement of the following 2018-1 Notes:

The Class A-1 A, A-1 B, A-2, B and C 2018-1 Notes are included in the consolidated financial statements of the Company. The Membership Interests are eliminated in consolidation.

The Company has agreed to hold on an ongoing basis the Membership Interests with an aggregate dollar purchase price at least equal to 5% of the aggregate amount of all obligations issued by the 2018-1 Issuer for so long as the 2018-1 Notes remain outstanding.

For the years ended December 31, 2018, 2017 and 2016 the components of interest expense related to the 2018-1 Issuer were as follows:

The Company is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The value of foreign investments held by the Company may be significantly affected by changes in foreign currency exchange rates. The dollar value of a foreign security generally decreases when the value of the dollar rises against the foreign currency in which the security is denominated and tends to increase when the value of the dollar declines against such foreign currency.

The Company may enter into forward currency exchange contracts to reduce the Company's exposure to foreign currency exchange rate fluctuations in the value of foreign currencies, as described in

Note 2. The fair value of derivative contracts open as of December 31, 2018 and December 31, 2017 is included on the consolidated schedule of investments by contract. The Company posted collateral of $0.0 million and $4.4 million with the counterparties on foreign currency exchange contracts at December 31, 2018 and December 31, 2017, respectively. Collateral amounts posted are included in collateral on forward currency exchange contracts on the consolidated statements of assets and liabilities.

For the years ended December 31, 2018 and December 31, 2017, the Company's average U.S. dollar notional exposure to forward currency exchange contracts were $97.8 million and $43.2 million, respectively. The Company did not hold any forward currency exchange contracts as of, or for the year ended, December 31, 2016.

By using derivative instruments, the Company is exposed to the counterparty's credit risk—the risk that derivative counterparties may not perform in accordance with the contractual provisions offset by the value of any collateral received. The Company's exposure to credit risk associated with counterparty non-performance is limited to collateral posted and the unrealized gains inherent in such transactions that are recognized in the consolidated statements of assets and liabilities. The Company minimizes counterparty credit risk through credit monitoring procedures, executing master netting arrangements and managing margin and collateral requirements, as appropriate.

The Company presents forward currency exchange contracts on a net basis by counterparty on the consolidated statements of assets and liabilities. The Company has elected not to offset assets and liabilities in the consolidated statements of assets and liabilities that may be received or paid as part of collateral arrangements, even when an enforceable master netting arrangement or other arrangement is in place that provides the Company, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty's rights and obligations.

The following table presents both gross and net information about derivative instruments eligible for offset in the consolidated statements of assets and liabilities as of December 31, 2018.

The following table presents both gross and net information about derivative instruments eligible for offset in the consolidated statements of assets and liabilities as of December 31, 2017.

The effect of transactions in derivative instruments to the consolidated statements of operations during the years ended December 31, 2018, 2017 and 2016 was as follows:

Included in total net gains (losses) on the consolidated statements of operations is net gains (losses) of ($7.9) million, $4.2 million and $0.0 million related to realized and unrealized gains and losses on investments, foreign currency holdings and non-investment assets and liabilities attributable to the changes in foreign currency exchange rates for the years ended December 31, 2018, 2017 and 2016, respectively. Including the total net realized and unrealized gains (losses) on forward currency exchange contracts of $10.2 million, ($3.7) million and $0.0 million, respectively, included in the above table. The net impact of foreign currency on total net gains (losses) on the consolidated statements of operations is $2.3 million, $0.4 million and $0.0 million for the years ended December 31, 2018, 2017 and 2016 respectively.

The Company's distributions are recorded on the record date. The following table summarizes distributions declared during the years ended December 31, 2018, 2017, and 2016:

The distributions declared during the years ended December 31, 2018, 2017 and 2016 were derived from investment company taxable income and net capital gain, if any.

The federal income tax characterization of distributions declared and paid for the fiscal year will be determined at fiscal year-end based upon our investment company taxable income for the full fiscal year and distributions paid during the full year.

The Company has authorized 100,000,000,000 shares of its common stock with a par value of $0.001 per share. The Company has authorized 10,000,000,000 shares of its preferred stock with a par value of $0.001 per share. Shares of preferred stock have not been issued.

Prior to the IPO, the Company had issued 43,982,137.46 shares in the private placement of the Company's common shares (the "Private Offering"). Each investor had entered into a separate subscription agreement relating to the Company's common stock (the "Subscription Agreements"). Each investor had made a capital commitment to purchase shares of the Company's common stock pursuant to the Subscription Agreements. Investors were required to make capital contributions to purchase shares of the Company's common stock each time the Company delivered a drawdown notice, which were delivered at least 10 business days prior to the required funding date in an aggregate amount not to exceed their respective capital commitments. The number of shares to be issued to a stockholder was determined by dividing the total dollar amount of the contribution by a stockholder by the net asset value per share of the common stock as of the last day of the Company's fiscal quarter or such other date and price per share as determined by the Board in accordance with the requirements of the 1940 Act. As of December 31, 2018 and December 31, 2017, aggregate commitments relating to the Private Offering were $1.3 billion. The remaining unfunded capital commitments related to these Subscription Agreements totaled $752.6 million as of December 31, 2017. All outstanding commitments related to these Subscription Agreements were cancelled due to the completion of the IPO on November 15, 2018. As of December 31, 2018 and December 31, 2017, BCSF Advisors, LP contributed in aggregate $7.8 million to the Company and received 389,476.18 shares of the Company and contributed $4.8 million to the Company and received 241,527.73 shares of the Company, respectively. At December 31, 2018 and December 31, 2017, BCSF Advisors, LP owned 0.76% and 0.97%, respectively, of the outstanding common stock of the Company.

On November 19, 2018, the Company closed its initial public offering (the "IPO") issuing 7,500,000 shares of its common stock at a public offering price of $20.25 per share. Shares of common

stock of the Company began trading on the New York Stock Exchange under the symbol "BCSF" on November 15, 2018. The offering generated proceeds, before expenses, of $147.3 million. All outstanding commitments were cancelled due the completion of the initial public offering.

The following table summarizes the total shares issued and amount received related to capital drawdowns delivered pursuant to the Subscription Agreements and shares issued pursuant to the dividend reinvestment plan during the years ended December 31, 2018, 2017 and 2016:

For income tax purposes, dividends paid and distributions made to the Company's stockholders are reported by the Company to the stockholders as ordinary income, capital gains, or a combination thereof. The tax character of distributions during the years ended December 31, 2018, 2017 and 2016 were as follows:

The following reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2018, 2017 and 2016:

Taxable income generally differs from net increase in net assets resulting from operations for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized.

Capital losses in excess of capital gains earned in a tax year may generally be carried forward and used to offset capital gains, subject to certain limitations. Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred after September 30, 2011 will not be subject to expiration. As of December 31, 2018, the Company has a short-term capital loss carryforward of $1.2 million and a long-term capital loss carryforward of $2.2 million.

As of December 31, 2018, 2017 and 2016, the Company's aggregate unrealized appreciation and depreciation on investments and forward currency exchange contracts based on cost for U.S. federal income tax purposes was as follows:

ASC Topic 740 ((Accounting for Uncertainty in Income Taxes ("ASC 740")) provides guidance on the accounting for and disclosure of uncertainty in tax position. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's 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. Based on its analysis of its tax position for all open tax years (the current and prior years, as applicable), the Company has concluded that it does not have any uncertain tax positions that met

the recognition or measurement criteria of ASC 740. Such open tax years remain subject to examination and adjustment by tax authorities. As of December 31, 2018, all tax filings of the Company since the inception on October 5, 2015 remain subject to examination by tax authorities.

The Company has determined that there were no tax positions which met the recognition and measurement requirements of the relevant accounting standards and therefore, the Company did not record an expense related to uncertain positions on the Company's consolidated statements of operations for the years ended December 31, 2018 and December 31, 2017.

The Company's investment portfolio may contain debt investments that are in the form of lines of credit and unfunded delayed draw commitments, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements.

As of December 31, 2018, the Company had $110.2 million of unfunded commitments under loan and financing agreements as follows:

		Unfunded Commitments ⁽²⁾ ⁽³⁾

First Lien Senior Secured Loans
Abracon Group Holding, LLC — Revolver	7/18/2024	$	2,833,400
Aimbridge Hospitality LP — Revolver	6/22/2022		1,176,500
AMCP Clean Acquisition Company, LLC — Delayed Draw Term Loan	6/16/2025		2,315,428
Amspec Services, Inc. — Revolver	7/2/2024		4,735,302
Ansira Holdings, Inc. — Revolver	12/20/2022		5,440,128
AP Plastics Group, LLC — Revolver	8/1/2021		8,500,200
API Technologies Corp. — Revolver	4/22/2024		4,183,169
Aramsco, Inc. — Revolver	8/28/2024		3,161,012
Batteries Plus Holding Corporation — Revolver	7/6/2022		4,250,100
Caliper Corporation — Revolver	11/30/2023		2,358,241
Captain D's LLC — Revolver	12/15/2023		1,073,909
Chase Industries, Inc. — Delayed Draw Term Loan	5/12/2025		3,544,365
Clinical Innovations, LLC — Revolver	10/17/2022		1,113,333
CMI Marketing Inc. — Revolver	5/24/2023		2,112,000
Cruz Bay Publishing, Inc. — Revolver	6/6/2019		566,680
CST Buyer Company — Revolver	3/1/2023		897,478
Datix Bidco Limited — Revolver	10/28/2024		1,239,500
Direct Travel, Inc. — Revolver	12/1/2021		4,250,100
Dorner Manufacturing Corp. — Revolver	3/15/2022		1,043,939
Drilling Info Holdings, Inc. — Delayed Draw Term Loan	7/30/2025		1,662,801
Efficient Collaborative Retail Marketing Company, LLC — Revolver	6/15/2022		3,541,750
Element Buyer, Inc. — Revolver	7/19/2024		4,250,100
ENC Holding Corporation — Delayed Draw Term Loan	5/30/2025		595,376
FineLine Technologies, Inc. — Revolver	11/2/2021		2,162,097
Grammer Purchaser, Inc. — Revolver	9/30/2024		945,000
Great Expressions Dental Centers PC — Revolver	9/28/2022		213,394
Home Franchise Concepts, Inc. — Revolver	7/9/2024		2,529,821
Horizon Telcom, Inc. — Delayed Draw Term Loan	6/15/2023		1,737,931
Horizon Telcom, Inc. — Revolver	6/15/2023		1,158,621
Margaux UK Finance — Revolver	12/19/2024		635,927
Margaux Acquisition Inc. — Revolver	12/19/2024		2,256,950
McKissock, LLC — Revolver	8/5/2021		1,841,710
PRCC Holdings, Inc. — Revolver	2/1/2021		3,541,750
Profile Products LLC — Revolver	12/20/2024		3,833,424
Solaray, LLC — Revolver	9/9/2022		7,083,500
Sovos Compliance, LLC — Delayed Draw Term Loan	3/1/2022		870,968
Sovos Compliance, LLC — Revolver	3/1/2022		1,451,615
Stanton Carpet Corp. — Revolver	11/21/2022		4,250,100
TEI Holdings Inc. — Revolver	12/20/2022		3,541,750
Tidel Engineering, L.P. — Revolver	3/1/2023		4,250,100
Zywave, Inc. — Revolver	11/17/2022		511,647

Total First Lien Senior Secured Loans		$	107,661,116

Other Unfunded Commitments
BCC Jetstream Holdings Aviation (On II), LLC			2,561,470

Total Other Unfunded Commitments		$	2,561,470

Total		$	110,222,586

As of December 31, 2017, the Company had $111.3 million of unfunded commitments under loan and financing agreements as follows:

		Unfunded Commitments ⁽²⁾⁽³⁾

First Lien Senior Secured Loans
Ansira Holdings, Inc. — Revolver	12/20/2022	$	7,083,500
AP Plastics Group, LLC — Revolver	8/1/2021		7,565,178
Batteries Plus Holding Corporation — Revolver	7/6/2022		4,250,100
Captain D's LLC — Revolver	12/15/2023		843,289
Clinical Innovations, LLC — Revolver	10/17/2022		998,161
Cruz Bay Publishing, Inc. — Revolver	6/6/2019		2,266,720
CST Buyer Company — Revolver	3/1/2023		897,478
Direct Travel, Inc. — Revolver	12/1/2021		4,250,100
Dorner Manufacturing Corp. — Revolver	3/15/2023		659,330
Efficient Collaborative Retail Marketing Company, LLC — Revolver	6/15/2022		3,541,750
ENC Holding Corporation — Revolver	2/8/2023		9,811,825
Endries International, Inc. — Delayed Draw Term Loan	6/1/2023		3,278,355
Endries International, Inc. — Revolver	6/1/2022		2,576,787
FineLine Technologies, Inc. — Revolver	11/2/2021		2,620,724
Great Expressions Dental Centers PC — Delayed Draw Term Loan	9/28/2023		667,000
Great Expressions Dental Centers PC — Revolver	9/28/2022		183,386
International Entertainment Investments Limited — Delayed Draw Term Loan	2/28/2022		558,414
K-Mac Holdings Corp. — Revolver	12/20/2021		1,440,000
Lakeland Tours, LLC — Delayed Draw Term Loan	12/8/2024		186,596
McKissock, LLC — Revolver	8/5/2019		2,125,050
PRCC Holdings, Inc. — Revolver	2/1/2021		3,541,750
Solaray, LLC — Revolver	9/9/2022		8,500,200
Sovos Compliance, LLC — Delayed Draw Term Loan	3/1/2022		4,838,710
Sovos Compliance, LLC — Revolver	3/1/2022		1,451,615
Stanton Carpet Corp. — Revolver	11/21/2022		4,250,100
TEI Holdings Inc. — Revolver	12/20/2022		4,250,100
Tidel Engineering, L.P. — Revolver	3/1/2023		5,666,800
Winchester Electronics Corporation — Revolver	6/30/2021		4,250,100
Zywave, Inc. — Revolver	11/17/2022		991,316

Total First Lien Senior Secured Loans		$	93,544,434

Second Lien Senior Secured Loans
NPC International, Inc. — Delayed Draw Term Loan	4/18/2025		8,000,716

Total Second Lien Senior Secured Loans		$	8,000,716

Other Unfunded Commitments

BCC Jetstream Holdings Aviation (On II), LLC			9,735,064

Total Other Unfunded Commitments		$	9,735,064

Total		$	111,280,214

In the normal course of business, the Company may enter into certain contracts that provide a variety of indemnities. The Company's maximum exposure under these indemnities is unknown as it would involve future claims that may be made against the Company. Currently, the Company is not aware of any

such claims and no such claims are expected to occur. As such, the Company does not consider it necessary to record a liability in this regard.

The following is a schedule of financial highlights for the years ended December 31, 2018, 2017 and 2016:

	For the Year Ended December 31,

	2018		2017		2016
Per share data:
Net asset value at beginning of year	$	20.30	$	20.10	$	—
Net investment income (loss) ⁽¹⁾		1.45		0.73		(0.90)
Net realized gain (loss) ⁽¹⁾⁽⁷⁾		(0.17)		0.00		—
Net change in unrealized appreciation (depreciation) ^(1)(2)(8)		(0.60)		0.17		1.01

Net increase in net assets resulting from operations ^(1)(9)(10)		0.68		0.90		0.11
Stockholder distributions from income⁽³⁾		(1.52)		(0.70)		(0.01)
Issuance of common stock		—		—		20.00

Net asset value at end of year	$	19.46	$	20.30	$	20.10



Net assets at end of year	$	1,001,629,147	$	506,962,828	$	110,344,258
Shares outstanding at end of year		51,482,137.46		24,975,812.40		5,490,882.30
Per share market value at end of year	$	16.77		N/A		N/A
Total return based on market value ⁽¹²⁾		(15.16)%		N/A		N/A
Total return based on net asset value ⁽⁴⁾		3.36%		4.52%		0.58%
Ratios:
Ratio of net investment income (loss) to average net assets ⁽⁵⁾⁽¹¹⁾		7.19%		3.51%		(4.57)%
Ratio of total expenses to average net assets ⁽⁵⁾⁽¹¹⁾		5.57%		2.57%		8.25%
Supplemental data:
Ratio of interest and debt financing expenses to average net assets ⁽⁵⁾		3.09%		0.89%		0.11%
Ratio of expenses (without incentive fees) to average net assets ⁽⁵⁾⁽¹¹⁾		4.71%		2.38%		7.18%
Ratio of incentive fees and management fees, net of contractual and voluntary waivers, to average net assets ⁽⁵⁾⁽¹¹⁾		2.00%		0.19%		1.07%
Average principal debt outstanding	$	490,467,706	$	67,252,515	$	484,426
Portfolio turnover ⁽⁶⁾		19.95%		18.57%		1.71%
Total committed capital, end of year		N/A	$	1,255,119,125	$	546,419,790
Ratio of total contributed capital to total committed capital, end of year		N/A		40.04%		20.10%

⁽⁶⁾: Portfolio turnover rate is calculated using the lesser of year-to-date sales or year-to-date purchases over the average of the invested assets at fair value for the years reported.
⁽⁷⁾: Net realized loss includes net realized gain (loss) on investments, net realized loss on forward currency exchange contracts and net realized gain (loss) on foreign currency transactions.
⁽⁸⁾: Net change in unrealized appreciation (depreciation) includes net change in unrealized appreciation (depreciation) on investments, net change in unrealized appreciation (depreciation) on forward currency exchange contracts and net change in unrealized appreciation (depreciation) on foreign currency translation.
⁽⁹⁾: The sum of quarterly per share amounts presented in previously filed financial statements on Form 10-Q may not equal earnings per share. This is due to changes in the number of weighted average shares outstanding and the effects of rounding.
⁽¹⁰⁾: Net increase in net assets resulting from operations per share in these financial highlights may be different from the net increase in net assets per share on the consolidated statements of operations due to rounding.
⁽¹¹⁾: Ratio of voluntary incentive fee waiver to average net assets was 0.25% for the year ended December 31, 2018 (Note 5). Ratio of voluntary management fee waiver to average net assets was 0.20% for the year ended December 31, 2018 (Note 5). The ratio of net investment income without the voluntary incentive fee waiver and voluntary management fee waiver to average net assets for the year ended December 31, 2018 would be 6.75%. The ratio of total expenses without the voluntary incentive fee waiver and voluntary management fee waiver to average net assets for the year ended December 31, 2018 would be 6.02%. No fees were voluntarily waived in the years ending December 31, 2017 and 2016.
⁽¹²⁾: Total return based on market value (not annualized) is calculated as the change in market value per share during the period, assuming dividends and distributions, plus the declared distributions, divided by the beginning market price for the period. The beginning market value per share is based on the IPO price of $20.25. Total return based on market value covers the period November 15, 2018 through December 31, 2018.

The following are the quarterly results of operations as of and for the years ended December 31, 2018, 2017 and 2016. The operating results for any quarter are not necessarily indicative of results for any future period:

with borrowed amounts) will continue to apply to assets held at an asset coverage ratio of 200%, but a lower base management fee of 1.0% (0.25% per quarter) of the average value of the Company's gross assets (excluding cash and cash equivalents, but including assets purchased with borrowed amounts) would apply to any amount of assets attributable to leverage decreasing the Company's asset coverage ratio below 200%.

As of February 28, 2019, zero dollars remain under the 10b5-1 Plan and no further purchases are intended under the 10b5-1 Plan.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

As of December 31, 2018 (the end of the period covered by this report), our management has carried out an evaluation, under the supervision of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15 under the Exchange Act). Based on that evaluation our Chief Executive Officer and Chief Financial Officer have concluded that our current disclosure controls and procedures are effective in timely alerting management, including the Chief Executive Officer and Chief Financial Officer, to material information relating to us that is required to be disclosed by us in the reports we file or submit under the Exchange Act. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

There have been no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act). Internal control over financial reporting is a process designed to provide reasonable assurance the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with US GAAP.

Management assessed the effectiveness of our internal control over financial reporting at December 31, 2018. In making this assessment, we used criteria set forth in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 COSO Framework). Based on our assessment, management concluded that, at December 31, 2018, our internal control over financial reporting is effective based on those criteria.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.

The information required by Item 10 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of our fiscal year.

The information required by Item 11 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of our fiscal year.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by Item 12 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of our fiscal year.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by Item 13 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of our fiscal year.

The information required by Item 14 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2019 Annual Meeting of Stockholders, to be filed with the SEC within 120 days following the end of our fiscal year.

The following exhibits are included, or incorporated by reference, in this Annual Report on Form 10-K for the year ended December 31, 2018 (and are numbered in accordance with Item 601 of Regulation S-K under the Securities Act).

Pursuant to the requirements 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.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:


(Mark One)
ý		ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2018
OR
o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Delaware (State or Other Jurisdiction of Incorporation or Organization)		81-2878769 (I.R.S. Employer Identification No.)
200 Clarendon Street, 37^th Floor Boston, MA (Address of Principal Executive Office)		02116 (Zip Code)

Title of Each Class		Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share		New York Stock Exchange


Year 1:		$25.0 million investment made in Company A ("Investment A"), $35.0 million investment made in Company B ("Investment B") and $30.0 million investment made in Company C ("Investment C")
Year 2:		Investment A sold for $35.0 million, fair value of Investment B determined to be $30.0 million and fair value of Investment C determined to be $32.0 million
Year 3:		Fair value of Investment B determined to be $34.0 million and Investment C sold for $35.0 million
Year 4:		Fair value of Investment B determined to be $45.0 million


The Incentive Fee based on capital gains, if any, would be:
Year 1:		None
Year 2:		$0.875 million
		The portion of the incentive fee based on capital gains equals (A) 17.5% of our realized capital gains, if any, on a cumulative basis from inception through the end of the fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, minus (B) the aggregate amount of any previously paid capital gain incentive. Therefore, using the assumptions above, the incentive fee based on capital gains equals (A) 17.5% × ($10.0 million-$5.0 million) minus (B) $0. Therefore, the incentive fee based on capital gains equals $0.875 million.
Year 3:		$1.575 million, which is calculated as follows: The incentive fee based on capital gains equals (A) 17.5% × ($15.0 million-$1.0 million) minus (B) $0.875 million. Therefore, the incentive fee based on capital gains equals $1.575 million.
Year 4:		$0.175 million, which is calculated as follows: The incentive fee based on capital gains equals (x) (A) 17.5% × ($15.0 million-$0.0 million) minus (B) $2.45 million. Therefore, the incentive fee based on capital gains equals $0.175 million.


Large accelerated filer o Non-accelerated filer ý		Accelerated filer o Smaller reporting company o Emerging growth company ý


(a)		prior to the IPO, 15% of the Company's realized capital gains, if any, on a cumulative basis from inception through the end of the fiscal year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees (the "Cumulative Capital Gains"), or
(b)		after the IPO, 17.5% of the Cumulative Capital Gains.

	As of December 31, 2018

Investment Performance Rating	Fair Value		Percentage of Total			Number of Companies		Percentage of Total
1	$	17,300,711		1.0	%		1		0.7	%
2		1,684,494,290		97.5			128		97.0
3		26,010,670		1.5			3		2.3
4		—		—			—		—

Total	$	1,727,805,671		100.0	%		132		100.0	%

Assumed Return on our Portfolio (Net of Expenses)	(10.00%)	(5.00%)	0.00%	5.00%	10.00%

Corresponding return to common stockholder assuming actual asset coverage as of December 31, 2018 (257%)⁽¹⁾	(20.62%)	(11.68%)	(2.74%)	6.20%	15.14%
Corresponding return to common stockholder assuming 200% asset coverage⁽²⁾	(25.84%)	(15.08%)	(4.31%)	6.45%	17.21%
Corresponding return to common stockholder assuming 150% asset coverage⁽³⁾	(40.15%)	(24.39%)	(8.63%)	7.13%	22.89%

Period	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs⁽¹⁾	Maximum (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs

November 15, 2018 through November 30, 2018	-	-	-	$20,000,000
December 1, 2018 through December 31, 2018	265,754	$15.28	265,754	$15,545,099

Total	265,754		265,754



Number of portfolio companies ⁽²⁾	132
Percentage of debt bearing a floating rate ⁽¹⁾	95.5	%
Percentage of debt bearing a fixed rate ⁽¹⁾	4.5	%



Number of portfolio companies ⁽²⁾	85
Percentage of debt bearing a floating rate ⁽¹⁾	98.4	%
Percentage of debt bearing a fixed rate ⁽¹⁾	1.6	%

	As of December 31, 2018

	Amortized Cost		Percentage at Amortized Cost			Fair Value		Percentage at Fair Value
Performing	$	1,753,116,975		100.0	%	$	1,727,805,671		100.0	%
Non-accrual		—		—			—		—

Total	$	1,753,116,975		100.0	%	$	1,727,805,671		100.0	%

	As of December 31, 2018

	Maximum Capital Contributions		Contributed Capital		Unfunded Capital Contributions
Bain Capital Specialty Finance, Inc.		$425,000,000		$281,201,031		$143,798,969
Antares Midco Inc.		525,000,000		347,360,091		177,639,909

Total Investments		$950,000,000		$628,561,122		$321,438,878

	As of

	December 31, 2018			December 31, 2017
Total first lien senior secured loans ⁽¹⁾	$	1,648,306,973		$	956,536,905
Weighted average yield on first lien unitranche loans ⁽²⁾		8.5	%		8.1	%
Largest loan to a single borrower ⁽¹⁾	$	122,910,538		$	106,231,058
Total of five largest loans to borrowers ⁽¹⁾	$	566,072,685		$	465,635,606
Number of borrowers in the ABCS		22			14
Commitments to fund delayed draw loans ⁽³⁾	$	57,622,635		$	25,087,777

	As of

	December 31, 2018		December 31, 2017
Loans, net of allowance of $17,616,259 and $0, respectively ⁽¹⁾	$	1,616,794,497	$	956,184,609
Cash, restricted cash and other assets		52,240,642		33,348,801

Total assets	$	1,669,035,139	$	989,533,410



Debt ⁽²⁾	$	1,027,614,661	$	587,657,029
Other liabilities		30,762,175		3,340,372

Total liabilities	$	1,058,376,836	$	590,997,401

Members' equity		610,658,303		398,536,009

Total liabilities and members' equity	$	1,669,035,139	$	989,533,410

	For the Year Ended		For the Period From November 29, 2017 through

	December 31, 2018		December 31, 2017
Interest income	$	104,547,506	$	6,815,586
Fee income		1,201,459		19,172

Total revenues		105,748,965		6,834,758
Credit facility expenses ⁽¹⁾		45,634,664		3,192,066
Other fees and expenses		22,231,409		3,100,844

Total expenses		67,866,073		6,292,910

Net investment income		37,882,892		541,848
Net realized gains		—		—
Net change in unrealized appreciation (depreciation) on investments		—		—

Net increase in members' capital from operations	$	37,882,892	$	$541,848


		⁽¹⁾ The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ("LIBOR" or "L") which reset daily, monthly, quarterly or semiannually. For each, the Company has provided the spread over LIBOR and the current weighted average interest rate in effect at December 31, 2018. Certain investments are subject to a LIBOR interest rate floor.
		⁽²⁾ Fair Value determined by the Advisor.
		⁽³⁾ The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.
		⁽⁴⁾ $204,252 of the total par amount for this security is at P + 4.75%.
		⁽⁵⁾ $158,063 of the total par amount for this security is at P + 4.75%.
		⁽⁶⁾ $52,785 of the total par amount for this security is at P + 5.75%.
		⁽⁷⁾ $391,241 of the total par amount for this security is at P + 4.50%.


		⁽¹⁾ The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ("LIBOR" or "L") or the Prime Rate ("Prime" or "P") which reset daily, monthly, quarterly or semiannually. For each, the Company has provided the spread over LIBOR and the current weighted average interest rate in effect at December 31, 2017. Certain investments are subject to a LIBOR or Prime interest rate floor.
		⁽²⁾ Fair Value determined by the Advisor.
		⁽³⁾ $128,932 of the total par amount for this security is at P + 5.25%.
		⁽⁴⁾ $52,785 of the total par amount for this security is at P + 5.75%.
		⁽⁵⁾ $393,462 of the total par amount for this security is at P + 5.50%.
		⁽⁶⁾ $62,615 of the total par amount for this security is at P + 5.50%.
		⁽⁷⁾ $163,237 of the total par amount for this security is at P + 5.50%.
		⁽⁸⁾ $186,836 of the total par amount for this security is at P + 5.50%.

	For the Year Ended December 31,

	2018		2017		2016⁽¹⁾
Total investment income	$	99,293,982	$	24,605,134	$	868,550
Less: Net expenses		43,363,281		10,395,929		1,950,084

Net investment income (loss) before taxes		55,930,701		14,209,205		(1,081,534	)
Less Income taxes, including excise tax		309		4,882		—

Net investment income (loss)		55,930,392		14,204,323		(1,081,534	)
Net realized gain (loss)		(6,485,428)		(52,499)		—
Net unrealized appreciation (depreciation) on investments		(22,799,770)		5,148,118		1,690,509

Net increase in net assets resulting from operations	$	26,645,194	$	19,299,942	$	608,975

	As of December 31, 2018						As of December 31, 2017

	Total Aggregate Principal Amount Committed		Principal Amount Outstanding		Carrying Value ⁽¹⁾		Total Aggregate Principal Amount Committed		Principal Amount Outstanding		Carrying Value
SMBC Revolving Credit Facility	$	—	$	—	$	—	$	150,000,000	$	150,000,000	$	150,000,000
BCSF Revolving Credit Facility		500,000,000		271,264,902		271,264,902		500,000,000		301,000,000		301,000,000
2018-1 Notes		365,700,000		365,700,000		363,659,680		—		—		—

Total Debt	$	865,700,000	$	636,964,902	$	634,924,582	$	650,000,000	$	451,000,000	$	451,000,000

2018-1 Notes	Principal Amount		Spread above Index

Class A-1 A	$	205,900,000	1.55% + 3 Month LIBOR	3.9703	%
Class A-1 B		45,000,000	1.50% + 3 Month LIBOR (first 24 months)	3.9203	%
			1.80% + 3 Month LIBOR (thereafter)
Class A-2		55,100,000	2.15% + 3 Month LIBOR	4.5703	%
Class B		29,300,000	3.00% + 3 Month LIBOR	5.4203	%
Class C		30,400,000	4.00% + 3 Month LIBOR	6.4203	%

Total 2018-1 Notes		365,700,000

Membership Interests		85,450,000	Non-interest bearing	Not applicable

Total	$	451,150,000

Date Declared	Record Date	Payment Date	Amount Per Share		Total Distributions

December 22, 2016	December 22, 2016	January 17, 2017	$	0.015	$	82,363
May 9, 2017	May 12, 2017	May 19, 2017	$	0.07	$	1,174,052
June 21, 2017	June 29, 2017	August 11, 2017	$	0.11	$	2,739,972
September 27, 2017	September 28, 2017	November 14, 2017	$	0.21	$	5,235,687
December 26, 2017	December 28, 2017	January 24, 2018	$	0.31	$	7,742,502
March 28, 2018	March 28, 2018	May 17, 2018	$	0.34	$	10,609,643
June 28, 2018	June 28, 2018	August 10, 2018	$	0.36	$	13,484,328
September 26, 2018	September 26, 2018	October 19, 2018	$	0.41	$	17,966,855
December 19, 2018	December 31, 2018	January 14, 2019	$	0.41	$	21,107,677

Total distributions declared			$	2.24	$	80,143,079

	Payments Due by Period

	Total		Less than 1 year		1 — 3 years		3 — 5 years		More than 5 years
BCSF Revolving Credit Facility	$	271,264,902	$	—	$	—	$	271,264,902	$	—
2018-1 Notes		365,700,000		—		—		—		365,700,000

Total Debt Obligations	$	636,964,902	$	—	$	—	$	271,264,902	$	365,700,000

Change in Interest Rates	Increase (Decrease) in Interest Income			Increase (Decrease) in Interest Expense			Net Increase (Decrease) in Net Investment Income


Down 25 basis points	$	(3,061,540	)	$	(1,592,412	)	$	(1,469,128	)
Up 100 basis points		12,308,562			6,369,649			5,938,913
Up 200 basis points		24,935,055			12,739,298			12,195,757
Up 300 basis points		37,620,761			19,108,947			18,511,814

		Page

Report of Independent Registered Public Accounting Firm		125
Consolidated Financial Statements:
Consolidated Statements of Assets and Liabilities as of December 31, 2018 and 2017		126
Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016		127
Consolidated Statements of Changes in Net Assets for the years ended December 31, 2018, 2017 and 2016		128
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016		129
Consolidated Schedule of Investments as of December 31, 2018		130
Consolidated Schedule of Investments as of December 31, 2017		137
Notes to Consolidated Financial Statements		142

		Investment		Acquisition Date

		BCC Jetstream Holdings Aviation (On II), LLC - Equity Interest			6/1/2017
		BCC Jetstream Holdings Aviation (Off I), LLC - Equity Interest			6/1/2017
		Antares Bain Capital Complete Financing Solution LLC - Investment Vehicle			11/29/2017
		CB Titan Holdings, Inc. - Equity Interest			11/14/2017
		Impala Private Investments, LLC - Equity Interest			11/10/2017
		Abracon Group Holding, LLC. - Equity Interest			7/18/2018
		Armor Group, LP-Equity Interest			8/28/2018
		Grammer Investment Holdings LLC - Warrant			10/1/2018
		Grammer Investment Holdings LLC - Equity Interest			10/1/2018
		Grammer Investment Holdings LLC - Preferred Equity			10/1/2018
		ADT Pizza, LLC - Equity Interest			10/29/2018
		PP Ultimate Holdings B, LLC - Equity Interest			12/20/2018
		⁽²⁶⁾ Loan includes interest rate floor of 1.25%.

	As of December 31, 2018

	Maximum Capital Contributions	Contributed Capital	Unfunded Capital Contributions
Bain Capital Specialty Finance, Inc.	$425,000,000	$281,201,031	$143,798,969
Antares Midco Inc.	525,000,000	347,360,091	177,639,909

Total Investments	$950,000,000	$628,561,122	$321,438,878

	As of December 31, 2017

	Maximum Capital Contributions	Contributed Capital	Unfunded Capital Contributions
Bain Capital Specialty Finance, Inc.	$425,000,000	$178,052,288	$246,947,712
Antares Midco Inc.	525,000,000	219,941,870	305,058,130

Total Investments	$950,000,000	$397,994,158	$552,005,842

	Fair Value Measurements

	Level 1		Level 2		Level 3		Total
Investments:
First Lien Senior Secured Loans	$	—	$	619,351,395	$	439,487,014	$	1,058,838,409
First Lien Last Out Loans		—		—		27,487,248		27,487,248
Second Lien Senior Secured Loans		—		112,585,925		145,555,089		258,141,014
Subordinated Debt		—		—		39,625,000		39,625,000
Corporate Bonds		—		35,023,170		—		35,023,170
Investment Vehicles ⁽¹⁾		—		—		279,362,792		279,362,792
Equity Interest		—		—		26,521,285		26,521,285
Preferred Equity		—		—		2,806,753		2,806,753
Warrants		—		—		—		—

Total Investments	$	—	$	766,960,490	$	960,845,181	$	1,727,805,671



Cash equivalents	$	876,881	$	—	$	—	$	876,881



Forward currency exchange contracts	$	—	$	9,321,758	$	—	$	9,321,758

	First Lien Senior Secured Loans			First Lien Last Out Loans			Second Lien Senior Secured Loans			Subordinated Debt			Investment Vehicles ⁽¹⁾			Equity Interest			Preferred Equity		Total Investments

Balance as of January 1, 2018	$	215,339,087		$	30,515,994		$	84,722,132		$	—		$	178,409,807		$	9,763,092		$	1,963,490	$	520,713,602
Purchases of investments and other adjustments to cost		340,358,300			1,178,599			83,800,723			39,700,000			103,148,743			16,350,082			600,000		585,136,447
Net accretion of discounts (amortization of premiums)		807,967			82,185			169,047			10,860			—			—			—		1,070,059
Proceeds from principal repayments and sales of investments		(122,601,350	)		(3,304,544	)		(18,763,457	)		—			(1,310,259	)		(2,752,517	)		—		(148,732,127	)
Net change in unrealized appreciation (depreciation) on investments		(5,694,986	)		(1,023,940	)		(4,418,947	)		(85,860	)		(885,499	)		1,908,111			243,263		(9,957,858	)
Net realized gains on investments		228,505			38,954			45,591			—			—			1,252,517			—		1,565,567
Transfers out of Level 3		(5,282,654	)		—			—			—			—			—			—		(5,282,654	)
Transfers to Level 3		16,332,145			—			—			—			—			—			—		16,332,145

Balance as of December 31, 2018	$	439,487,014		$	27,487,248		$	145,555,089		$	39,625,000		$	279,362,792		$	26,521,285		$	2,806,753	$	960,845,181



Change in unrealized appreciation (depreciation) attributable to investments still held at December 31, 2018	$	(5,013,716	)	$	(1,023,940	)	$	(4,040,283	)	$	(85,860	)	$	(885,499	)	$	1,908,111		$	243,263	$	(8,897,924	)

	First Lien Senior Secured Loan			First Lien Last Out Loan		Second Lien Senior Secured Loan		Investment Vehicles ⁽¹⁾		Equity Interest			Preferred Equity		Total Investments

Balance as of January 1, 2017	$	32,735,307		$	—	$	—	$	—	$	—		$	—	$	32,735,307
Purchases of investments and other adjustments to cost		184,468,206			29,300,933		76,104,870		178,052,288		10,592,759			1,952,880		480,471,936
Net accretion of discounts (amortization of premiums)		356,293			29,000		72,563		—		—			—		457,856
Proceeds from principal repayments and sales of investments		(27,291,494	)		—		—		—		(1,365,040	)		—		(28,656,534	)
Net change in unrealized appreciation on investments		4,618,395			1,186,061		1,449,493		357,519		535,373			10,610		8,157,451
Net realized gains on investments		22,797			—		—		—		—			—		22,797
Transfers to Level 3		20,429,583			—		7,095,206		—		—			—		27,524,789

Balance as of December 31, 2017	$	215,339,087		$	30,515,994	$	84,722,132	$	178,409,807	$	9,763,092		$	1,963,490	$	520,713,602



Change in unrealized appreciation attributable to investments still held at December 31, 2017	$	4,768,395		$	1,186,061	$	1,449,493	$	357,519	$	535,373		$	10,610	$	8,307,451

	As of December 31, 2018

	Fair Value of Level 3 Assets ⁽¹⁾		Valuation Technique	Significant Unobservable Inputs	Range of Significant Unobservable Inputs (Weighted Average ⁽²⁾)
First Lien Senior Secured Loans	$	248,966,920	Discounted Cash Flows	Comparative Yields	5.4%-12.8% (8.1%)
First Lien Senior Secured Loans		4,162,757	Comparable Company Multiple	Book Value Multiple	1x-1x (1x)
First Lien Senior Secured Loans		11,500,080	Collateral Analysis	Recovery Rate	100%
First Lien Last Out Loans		27,454,616	Discounted Cash Flows	Comparative Yields	8.6%-14.5% (12.1%)
Second Lien Senior Secured Loans		85,979,661	Discounted Cash Flows	Comparative Yields	6.6%-14.5% (10.6%)
Subordinated Debt		39,625,000	Discounted Cash Flows	Comparative Yields	10.0%-16.2% (12.3%)
Investment Vehicles ⁽³⁾		279,362,792	Other	—	—
Equity Interest		3,000,362	Comparable Company Multiple	EBITDA Multiple	13.3x-13.5x (13.4x)
Equity Interest		14,722,691	Comparable Company Multiple	Book Value Multiple	1x-1x (1x)
Preferred Equity		2,206,753	Comparable Company Multiple	EBITDA Multiple	10.5x-10.5x (10.5x)

Total investments	$	716,981,632

	As of December 31, 2018						As of December 31, 2017

	Total Aggregate Principal Amount Committed		Principal Amount Outstanding		Carrying Value ⁽¹⁾		Total Aggregate Principal Amount Committed		Principal Amount Outstanding		Carrying Value
SMBC Revolving Credit Facility	$	—	$	—	$	—	$	150,000,000	$	150,000,000	$	150,000,000
BCSF Revolving Credit Facility		500,000,000		271,264,902		271,264,902		500,000,000		301,000,000		301,000,000
2018-1 Notes		365,700,000		365,700,000		363,659,680		—		—		—

Total Debt	$	865,700,000	$	636,964,902	$	634,924,582	$	650,000,000	$	451,000,000	$	451,000,000

100% of the excess of our pre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.5% per quarter (6% annualized) (the "Hurdle"), until the Advisor has received a "catch-up" equal to:

15% of the pre-incentive fee net investment income for the current quarter prior to the IPO, or

17.5% of the pre-incentive fee net investment income for the current quarter after the IPO; and

15% of all remaining pre-incentive fee net investment income above the "catch-up" prior to the IPO, or

17.5% of all remaining pre-incentive fee net investment income above the "catch-up" after the IPO.