View:
Download DOC
Download PDF
Download XLS
Download XBRL

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the Quarterly Period Ended November 30, 2023

 

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Commission File No. 814-00732

 

SARATOGA INVESTMENT CORP.

(Exact name of registrant as specified in its charter)

 

Maryland   20-8700615
(State or other jurisdiction of
incorporation or organization)		   (I.R.S. Employer
Identification Number)

 

535 Madison Avenue

New York, New York 10022

(Address of principal executive offices)

 

(212) 906-7800

(Registrant’s telephone number, including area code)

 

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

 

Title of each class   Trading Symbol(s)   Name of each exchange on which
registered
Common Stock, par value $0.001 per share   SAR   The New York Stock Exchange
6.00% Notes due 2027   SAT   The New York Stock Exchange
8.00% Notes due 2027   SAJ   The New York Stock Exchange
8.125% Notes due 2027   SAY   The New York Stock Exchange
8.50% Notes due 2027   SAZ   The New York Stock Exchange

 

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

 

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

 

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

 

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

 

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

 

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

 

The number of outstanding common shares of the registrant as of January 8, 2024 was 13,653,476

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART I. FINANCIAL INFORMATION 1
     
Item 1. Consolidated Financial Statements 1
     
  Consolidated Statements of Assets and Liabilities as of November 30, 2023 (unaudited) and February 28, 2023 1
     
  Consolidated Statements of Operations for the three months and nine ended November, 2023 (unaudited) and November 30, 2022 (unaudited) 2
     
  Consolidated Statements of Changes in Net Assets for three and nine months ended November 30, 2023 (unaudited) and November 30, 2022 (unaudited) 3
     
  Consolidated Statements of Cash Flows for the nine months ended November 30, 2023 (unaudited) and November 30, 2022 (unaudited) 4
     
  Consolidated Schedules of Investments as of November 30, 2023 (unaudited) and February 28, 2023 5
     
  Notes to Consolidated Financial Statements as of November 30, 2023 (unaudited) 27
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 109
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 150
     
Item 4. Controls and Procedures 151
     
PART II. OTHER INFORMATION 152
     
Item 1. Legal Proceedings 152
     
Item 1A. Risk Factors 152
     
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchase of Equity Securities 153
     
Item 3. Defaults Upon Senior Securities 153
     
Item 4. Mine Safety Disclosures 153
     
Item 5. Other Information 153
     
Item 6. Exhibits 154
     
Signatures 159

 

i

 

 

PART I. FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

Saratoga Investment Corp.

Consolidated Statements of Assets and Liabilities

 

   November 30,
2023		   February 28,
2023		 
   (unaudited)     
ASSETS        
Investments at fair value        
Non-control/Non-affiliate investments (amortized cost of $983,711,569 and $819,966,208, respectively)  $976,440,074   $828,028,800 
Affiliate investments (amortized cost of $45,834,741 and $25,722,320, respectively)   47,128,397    28,305,871 
Control investments (amortized cost of $118,317,634 and $120,800,829, respectively)   90,470,138    116,255,582 
Total investments at fair value (amortized cost of $1,147,863,944 and $966,489,357, respectively)   1,114,038,609    972,590,253 
Cash and cash equivalents   21,386,880    65,746,494 
Cash and cash equivalents, reserve accounts   25,639,619    30,329,779 
Interest receivable (net of reserve of $6,951,408 and $2,217,300, respectively)   9,235,919    8,159,951 
Management fee receivable   364,032    363,809 
Other assets   932,383    531,337 
Current tax receivable   99,676    436,551 
Total assets  $1,171,697,118   $1,078,158,174 
           
LIABILITIES          
Revolving credit facility  $35,000,000   $32,500,000 
Deferred debt financing costs, revolving credit facility   (996,961)   (1,344,005)
SBA debentures payable   205,000,000    202,000,000 
Deferred debt financing costs, SBA debentures payable   (5,789,246)   (4,923,488)
8.75% Notes Payable 2024   20,000,000    
-
 
Discount on 8.75% notes payable 2024   (251,521)   
-
 
Deferred debt financing costs, 8.75% notes payable 2024   (10,576)   
-
 
7.00% Notes Payable 2025   12,000,000    12,000,000 
Discount on 7.00% notes payable 2025   (222,781)   (304,946)
Deferred debt financing costs, 7.00% notes payable 2025   (28,165)   (40,118)
7.75% Notes Payable 2025   5,000,000    5,000,000 
Deferred debt financing costs, 7.75% notes payable 2025   (88,206)   (129,528)
4.375% Notes Payable 2026   175,000,000    175,000,000 
Premium on 4.375% notes payable 2026   641,310    830,824 
Deferred debt financing costs, 4.375% notes payable 2026   (1,918,155)   (2,552,924)
4.35% Notes Payable 2027   75,000,000    75,000,000 
Discount on 4.35% notes payable 2027   (330,619)   (408,932)
Deferred debt financing costs, 4.35% notes payable 2027   (1,119,041)   (1,378,515)
6.25% Notes Payable 2027   15,000,000    15,000,000 
Deferred debt financing costs, 6.25% notes payable 2027   (291,226)   (344,949)
6.00% Notes Payable 2027   105,500,000    105,500,000 
Discount on 6.00% notes payable 2027   (132,538)   (159,334)
Deferred debt financing costs, 6.00% notes payable 2027   (2,399,002)   (2,926,637)
8.00% Notes Payable 2027   46,000,000    46,000,000 
Deferred debt financing costs, 8.00% notes payable 2027   (1,360,960)   (1,622,376)
8.125% Notes Payable 2027   60,375,000    60,375,000 
Deferred debt financing costs, 8.125% notes payable 2027   (1,665,155)   (1,944,536)
8.50% Notes Payable 2028   57,500,000    
-
 
Deferred debt financing costs, 8.50% notes payable 2028   (1,781,486)   
-
 
Base management and incentive fees payable   8,139,713    12,114,878 
Deferred tax liability   3,422,306    2,816,572 
Accounts payable and accrued expenses   2,086,243    1,464,343 
Interest and debt fees payable   4,609,435    3,652,936 
Directors fees payable   
-
    14,932 
Due to manager   250,000    10,935 
Total liabilities   812,138,369    731,200,132 
           
Commitments and contingencies (See Note 9)   
 
    
 
 
           
NET ASSETS          
Common stock, par value $0.001, 100,000,000 common shares authorized, 13,114,977 and 11,890,500 common shares issued and outstanding, respectively   13,115    11,891 
Capital in excess of par value   356,698,595    321,893,806 
Total distributable earnings   2,847,039    25,052,345 
Total net assets   359,558,749    346,958,042 
Total liabilities and net assets  $1,171,697,118   $1,078,158,174 
NET ASSET VALUE PER SHARE  $27.42   $29.18 

 

See accompanying notes to consolidated financial statements.

 

1

 

 

Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)

 

   For the three months ended   For the nine months ended 
   November 30,
2023		   November 30,
2022		   November 30,
2023		   November 30,
2022		 
INVESTMENT INCOME                
Interest from investments                
Interest income:                
Non-control/Non-affiliate investments  $28,741,745   $19,549,044   $83,542,257   $49,597,660 
Affiliate investments   1,165,585    1,914,800    2,799,735    4,287,449 
Control investments   2,183,242    1,671,354    6,314,550    4,731,150 
Payment-in-kind interest income:                    
Non-control/Non-affiliate investments   88,106    87,130    706,339    258,557 
Affiliate investments   221,348    191,860    644,484    221,027 
Control investments   258,729    102,720    542,581    260,161 
Total interest from investments   32,658,755    23,516,908    94,549,946    59,356,004 
Interest from cash and cash equivalents   521,574    200,258    1,864,956    235,410 
Management fee income   819,929    818,254    2,453,967    2,451,242 
Dividend Income   1,828,584    436,941    5,301,097    949,758 
Structuring and advisory fee income   312,135    553,497    1,786,357    2,813,311 
Other income   199,368    731,166    530,210    983,277 
Total investment income   36,340,345    26,257,024    106,486,533    66,789,002 
                     
OPERATING EXPENSES                    
Interest and debt financing expenses   12,522,357    8,449,900    36,628,641    23,243,438 
Base management fees   4,857,059    4,258,821    14,262,147    12,164,989 
Incentive management fees expense   2,243,621    1,531,060    4,828,442    216,915 
Professional fees   434,552    558,531    1,407,275    1,344,021 
Administrator expenses   1,075,000    818,750    2,797,917    2,341,667 
Insurance   81,002    89,187    244,804    266,723 
Directors fees and expenses   80,729    80,000    280,797    300,000 
General and administrative   660,062    525,202    1,957,906    1,492,063 
Income tax expense (benefit)   219,900    68,136    (11,193)   (132,487)
Total operating expenses   22,174,282    16,379,587    62,396,736    41,237,329 
NET INVESTMENT INCOME   14,166,063    9,877,437    44,089,797    25,551,673 
                     
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS                    
Net realized gain (loss) from investments:                    
Non-control/Non-affiliate investments   60,565    (740,434)   151,256    7,365,913 
Net realized gain (loss) from investments   60,565    (740,434)   151,256    7,365,913 
Income tax (provision) benefit from realized gain on investments   
-
    479,318    
-
    548,568 
Net change in unrealized appreciation (depreciation) on investments:                    
Non-control/Non-affiliate investments   (1,948,502)   2,082,634    (15,334,087)   (12,430,125)
Affiliate investments   (1,084,259)   693,483    (1,289,895)   3,861,523 
Control investments   (14,833,592)   (5,952,325)   (23,302,249)   (17,199,511)
Net change in unrealized appreciation (depreciation) on investments   (17,866,353)   (3,176,208)   (39,926,231)   (25,768,113)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   (415,894)   (425,848)   (577,693)   (1,017,953)
Net realized and unrealized gain (loss) on investments   (18,221,682)   (3,863,172)   (40,352,668)   (18,871,585)
Realized losses on extinguishment of debt   
-
    
-
    (110,056)   (1,204,809)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $(4,055,619)  $6,014,265   $3,627,073   $5,475,279 
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE
  $(0.31)  $0.51   $0.29   $0.46 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED
   13,052,896    11,893,173    12,355,815    11,989,811 

 

See accompanying notes to consolidated financial statements.

 

2

 

 

Saratoga Investment Corp.

Consolidated Statements of Changes in Net Assets

(unaudited)

 

   For the nine months ended 
   November 30,
2023		   November 30,
2022		 
INCREASE (DECREASE) FROM OPERATIONS:        
Net investment income  $44,089,797   $25,551,673 
Net realized gain from investments   151,256    7,365,913 
Realized losses on extinguishment of debt   (110,056)   (1,204,809)
Income tax (provision) benefit from realized gain on investments   
-
    548,568 
Net change in unrealized appreciation (depreciation) on investments   (39,926,231)   (25,768,113)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   (577,693)   (1,017,953)
Net increase in net assets resulting from operations   3,627,073    5,475,279 
           
DECREASE FROM SHAREHOLDER DISTRIBUTIONS:          
Total distributions to shareholders   (25,832,379)   (19,232,096)
Net decrease in net assets from shareholder distributions   (25,832,379)   (19,232,096)
           
CAPITAL SHARE TRANSACTIONS:          
Proceeds from issuance of common stock(1)   31,510,617    
-
 
Capital contribution from manager   3,093,288    
-
 
Stock dividend distribution   2,667,152    3,347,802 
Repurchases of common stock   (2,157,605)   (9,600,116)
Repurchase fees   (1,772)   (7,792)
Offering costs   (305,667)   
-
 
Net increase (decrease) in net assets from capital share transactions   34,806,013    (6,260,106)
Total increase (decrease) in net assets   12,600,707    (20,016,923)
Net assets at beginning of period   346,958,042    355,780,523 
Net assets at end of period  $359,558,749   $335,763,600 

 

(1)See Note 11 to the Consolidated Financial Statements contained herein for more information on share issuance.

 

See accompanying notes to consolidated financial statements.

 

3

 

 

Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)

 

   For the nine months ended 
   November 30,
2023		   November 30,
2022		 
Operating activities        
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $3,627,073   $5,475,279 
ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS RESULTING          
FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:          
Payment-in-kind and other adjustments to cost   4,054,128    1,374,899 
Net accretion of discount on investments   (1,641,652)   (1,245,358)
Amortization of deferred debt financing costs   3,909,127    2,567,903 
Realized losses on extinguishment of debt   110,056    1,204,809 
Income tax expense (benefit)   (11,193)   (681,055)
Net realized (gain) loss from investments   (151,256)   (7,365,913)
Net change in unrealized (appreciation) depreciation on investments   39,926,231    25,768,113 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   577,693    1,017,953 
Proceeds from sales and repayments of investments   19,247,834    162,090,516 
Purchases of investments   (202,883,641)   (345,088,953)
(Increase) decrease in operating assets:          
Interest receivable   (1,075,968)   (3,722,035)
Due from affiliate   
-
    90,968 
Management fee receivable   (223)   (1,266)
Other assets   (401,046)   18,119 
Current income tax receivable   336,875    - 
Increase (decrease) in operating liabilities:          
Base management and incentive fees payable   (3,975,165)   (3,390,134)
Accounts payable and accrued expenses   621,900    466,950 
Current tax payable   
-
    (2,793,200)
Interest and debt fees payable   956,499    2,145,104 
Directors fees payable   (14,932)   25,932 
Excise tax payable   
-
    (630,183)
Due to manager   239,065    (257,628)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES   (136,548,595)   (162,929,180)
           
Financing activities          
Borrowings on debt   62,500,000    105,500,000 
Paydowns on debt   (57,000,000)   (35,340,000)
Issuance of notes   77,500,000    163,500,000 
Repayments of notes   
-
    (43,125,000)
Payments of deferred debt financing costs   (4,474,813)   (7,400,318)
Discount on  debt issuance, 6.00% notes 2027   
-
    (176,000)
Discount on  debt issuance, 7.00% notes 2025   
-
    (360,000)
Proceeds from issuance of common stock   31,510,617    
-
 
Capital contribution from manager   3,093,288    
-
 
Payments of cash dividends   (23,165,227)   (15,884,294)
Repurchases of common stock   (2,157,605)   (9,600,116)
Repurchases fees   (1,772)   (7,792)
Payments of offering costs   (305,667)   
-
 
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES   87,498,821    157,106,480 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS   (49,049,774)   (5,822,700)
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD   96,076,273    52,870,342 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD (See Note 2)  $47,026,499   $47,047,642 
           
Supplemental information:          
Interest paid during the period  $31,763,015   $18,374,593 
Cash paid for taxes   654,930    2,770,984 
Supplemental non-cash information:          
Payment-in-kind interest income and other adjustments to cost   (4,054,128)   1,374,899 
Net accretion of discount on investments   1,641,652    1,245,358 
Amortization of deferred debt financing costs   3,909,127    2,567,903 
Stock dividend distribution   2,667,152    3,347,802 

 

See accompanying notes to consolidated financial statements.

 

4

 

 

Saratoga Investment Corp.

Consolidated Schedule of Investments

November 30, 2023

(unaudited)

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original
Acquisition
Date		  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Non-control/Non-affiliate investments - 269.2% (b)                         
Altvia MidCo, LLC.  Alternative Investment Management Software  First Lien Term Loan
(3M USD TERM SOFR+8.50%), 13.87% Cash, 7/18/2027		  7/18/2022  $7,920,000   $7,856,836   $7,890,696    2.2%
Altvia MidCo, LLC. (h)  Alternative Investment Management Software  Series A-1 Preferred Shares  7/18/2022   2,000,000    2,000,000    2,919,054    0.8%
      Total Alternative Investment Management Software           9,856,836    10,809,750    3.0%
BQE Software, Inc.  Architecture & Engineering Software  First Lien Term Loan
(3M USD TERM SOFR+6.75%), 12.12% Cash, 4/13/2028		  4/13/2023  $24,500,000    24,273,149    24,291,750    6.8%
BQE Software, Inc. (j)  Architecture & Engineering Software  Delayed Draw Term Loan
(3M USD TERM SOFR+6.75%), 12.12% Cash, 4/13/2028		  4/13/2023  $750,000    743,020    743,625    0.2%
      Total Architecture & Engineering Software           25,016,169    25,035,375    7.0%
GrowthZone, LLC  Association Management Software  First Lien Term Loan
(3M USD TERM SOFR+8.25%), 13.62% Cash, 5/10/2028		  5/10/2023  $22,649,425    22,277,557    22,588,272    6.3%
Golden TopCo LP (h)  Association Management Software  Class A-2 Common Units  5/10/2023   1,072,394    1,072,394    1,108,099    0.3%
      Total Association Management Software           23,349,951    23,696,371    6.6%
Artemis Wax Corp. (d)(j)  Consumer Services  Delayed Draw Term Loan
(1M USD TERM SOFR+6.75%), 12.09% Cash, 5/20/2026		  5/20/2021  $57,500,000    57,182,306    57,747,250    16.1%
Artemis Wax Corp. (h)  Consumer Services  Series B-1 Preferred Stock  5/20/2021   934,463    1,500,000    4,556,457    1.3%
Artemis Wax Corp. (h)  Consumer Services  Series D Preferred Stock  12/22/2022   278,769    1,500,000    1,668,566    0.5%
      Total Consumer Services           60,182,306    63,972,273    17.9%
Schoox, Inc. (h), (i)  Corporate Education Software  Series 1 Membership Interest  12/8/2020   1,050    475,698    4,397,441    1.2%
      Total Corporate Education Software           475,698    4,397,441    1.2%
GreyHeller LLC (h)  Cyber Security  Common Stock  11/10/2021   7,857,689    1,906,275    2,715,526    0.8%
      Total Cyber Security           1,906,275    2,715,526    0.8%
Gen4 Dental Partners Holdings, LLC (j)  Dental Practice Management  Delayed Draw Term Loan
(3M USD TERM SOFR+10.33%), 15.70% Cash, 4/29/2026		  2/8/2023  $10,756,017    10,734,773    10,971,137    3.1%

 

5

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original
Acquisition
Date		  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Gen4 Dental Partners Holdings, LLC (h)(i)  Dental Practice Management  Series A Preferred Units  2/8/2023   493,999    1,027,519    1,091,738    0.3%
New England Dental Partners  Dental Practice Management  First Lien Term Loan
(3M USD TERM SOFR+8.00%), 13.52% Cash, 11/25/2025		  11/25/2020  $6,555,000    6,524,137    6,279,035    1.7%
New England Dental Partners  Dental Practice Management  Delayed Draw Term Loan
(3M USD TERM SOFR+8.00%), 13.52% Cash, 11/25/2025		  11/25/2020  $4,650,000    4,634,096    4,454,235    1.2%
      Total Dental Practice Management           22,920,525    22,796,145    6.3%
Exigo, LLC (d)  Direct Selling Software  First Lien Term Loan
(1M USD TERM SOFR+5.75%), 11.19% Cash, 3/16/2027		  3/16/2022  $24,375,000    24,220,792    23,953,313    6.7%
Exigo, LLC (j)  Direct Selling Software  Revolving Credit Facility
(1M USD TERM SOFR+5.75%), 11.19% Cash, 3/16/2027		  3/16/2022  $-    -    (18,021)   0.0%
Exigo, LLC (h), (i)  Direct Selling Software  Common Units  3/16/2022   1,041,667    1,041,667    1,188,396    0.3%
      Total Direct Selling Software           25,262,459    25,123,688    7.0%
C2 Educational Systems, Inc. (d)  Education Services  First Lien Term Loan
(3M USD TERM SOFR+8.50%), 13.87% Cash, 5/31/2025		  5/31/2017  $21,500,000    21,475,005    21,506,450    6.0%
C2 Educational Systems, Inc. (j)  Education Services  Delayed Draw Term Loan
(3M USD TERM SOFR+8.50%), 13.87% Cash, 5/31/2025		  4/28/2023  $-    -    -    0.0%
C2 Education Systems, Inc. (h)  Education Services  Series A-1 Preferred Stock  5/18/2021   3,127    499,904    569,082    0.2%
Zollege PBC (k)  Education Services  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 14.37% Cash/2.00% PIK, 5/11/2026		  5/11/2021  $16,409,153    16,332,693    13,782,048    3.8%
Zollege PBC (j)(k)  Education Services  Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 14.37% Cash/2.00% PIK, 5/11/2026		  5/11/2021  $939,109    932,951    788,758    0.2%
Zollege PBC (h)  Education Services  Class A Units  5/11/2021   250,000    250,000    32,716    0.0%
      Total Education Services           39,490,553    36,679,054    10.2%

 

6

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original
Acquisition
Date		  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Destiny Solutions Inc. (h)(i)  Education Software  Limited Partner Interests  5/16/2018   3,068    3,969,291    9,633,415    2.7%
GoReact  Education Software  First Lien Term Loan
(3M USD TERM SOFR+7.50%), 14.07% Cash/1.00% PIK, 1/17/2025		  1/17/2020  $8,067,365    8,033,120    8,073,012    2.2%
GoReact (j)  Education Software  Delayed Draw Term Loan
(3M USD TERM SOFR+7.50%), 14.07% Cash/1.00% PIK, 1/17/2025		  1/18/2022  $-    -    -    0.0%
Identity Automation Systems (h)  Education Software  Common Stock Class A-2 Units  8/25/2014   232,616    232,616    553,406    0.2%
Identity Automation Systems (h)  Education Software  Common Stock Class A-1 Units  3/6/2020   43,715    171,571    230,727    0.1%
Ready Education  Education Software  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.37% Cash, 8/5/2027		  8/5/2022  $27,000,000    26,783,146    26,454,600    7.4%
      Total Education Software           39,189,744    44,945,160    12.6%
TG Pressure Washing Holdings, LLC (h)  Facilities Maintenance  Preferred Equity  8/12/2019   488,148    488,148    274,272    0.1%
      Total Facilities Maintenance           488,148    274,272    0.1%
Davisware, LLC  Field Service Management  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.37% Cash, 7/31/2024		  9/6/2019  $6,000,000    5,985,947    5,976,600    1.7%
Davisware, LLC (j)  Field Service Management  Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.37% Cash, 7/31/2024		  9/6/2019  $3,977,790    3,964,276    3,962,277    1.1%
      Total Field Service Management           9,950,223    9,938,877    2.8%
GDS Software Holdings, LLC  Financial Services  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.37% Cash, 12/30/2026		  12/30/2021  $22,713,926    22,616,511    22,389,117    6.2%
GDS Software Holdings, LLC  Financial Services  Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.37% Cash, 12/30/2026		  12/30/2021  $3,286,074    3,260,914    3,239,083    0.9%
GDS Software Holdings, LLC  (h)  Financial Services  Common Stock Class A Units  8/23/2018   250,000    250,000    481,091    0.1%
      Total Financial Services           26,127,425    26,109,291    7.2%
Ascend Software, LLC  Financial Services Software  First Lien Term Loan
(3M USD TERM SOFR+7.50%), 13.13% Cash, 12/15/2026		  12/15/2021  $6,000,000    5,959,140    5,904,600    1.6%
Ascend Software, LLC (j)  Financial Services Software  Delayed Draw Term Loan
(3M USD TERM SOFR+7.50%), 13.13% Cash, 12/15/2026		  12/15/2021  $4,050,000    4,018,101    3,961,755    1.1%
      Total Financial Services Software           9,977,241    9,866,355    2.7%
Inspect Point Holdings, LLC  Fire Inspection Business Software  First Lien Term Loan
(1M USD TERM SOFR+6.50%), 11.84% Cash, 07/19/2028		  7/19/2023  $10,000,000    9,904,135    9,900,000    2.8%
Inspect Point Holdings, LLC (j)  Fire Inspection Business Software  First Lien Term Loan
(1M USD TERM SOFR+6.50%), 11.84% Cash, 07/19/2028		  7/19/2023  $-    -    -    0.0%
      Total Fire Inspection Business Software           9,904,135    9,900,000    2.8%

 

7

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original
Acquisition
Date		  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Stretch Zone Franchising, LLC  Health/Fitness Franchisor  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.37% Cash, 3/31/2028		  3/31/2023  $30,000,000    29,725,038    29,925,000    8.3%
Stretch Zone Franchising, LLC (j)  Health/Fitness Franchisor  Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.37% Cash, 3/31/2028		  3/31/2023  $-    -    -    0.0%
Stretch Zone Franchising, LLC (h)  Health/Fitness Franchisor  Class A Units  3/31/2023   20,000    2,000,000    2,076,541    0.6%
      Total Health/Fitness Franchisor           31,725,038    32,001,541    8.9%
                              
Axiom Medical Consulting, LLC  Healthcare Services  First Lien Term Loan
(3M USD TERM SOFR+6.00%), 11.37% Cash, 9/11/2028		  9/11/2023  $10,000,000    9,914,732    9,913,000    2.8%
Axiom Medical Consulting, LLC (j)  Healthcare Services  Delayed Draw Term Loan
(3M USD TERM SOFR+6.00%), 11.37% Cash, 9/11/2028		  9/11/2023  $-    -    -    0.0%
Axiom Parent Holdings, LLC (h)  Healthcare Services  Class A Preferred Units  6/19/2018   400,000    258,389    657,124    0.2%
ComForCare Health Care (d)  Healthcare Services  First Lien Term Loan
(3M USD TERM SOFR+6.25%), 11.62% Cash, 1/31/2025		  1/31/2017  $25,000,000    24,959,793    25,000,000    7.0%
      Total Healthcare Services           35,132,914    35,570,124    10.0%
HemaTerra Holding Company, LLC (d)  Healthcare Software  First Lien Term Loan
(1M USD TERM SOFR+8.25%), 13.59% Cash, 1/31/2027		  4/15/2019  $55,066,770    54,739,570    55,220,957    15.4%
HemaTerra Holding Company, LLC  Healthcare Software  Delayed Draw Term Loan
(1M USD TERM SOFR+8.25%), 13.59% Cash, 1/31/2027		  4/15/2019  $13,790,700    13,738,934    13,829,314    3.8%
TRC HemaTerra, LLC (h)  Healthcare Software  Class D Membership Interests  4/15/2019   2,487    2,816,693    5,188,325    1.4%
Procurement Partners, LLC  Healthcare Software  First Lien Term Loan
(3M USD TERM SOFR+6.50%), 11.87% Cash, 5/12/2026		  11/12/2020  $35,125,000    34,951,761    35,125,000    9.8%
Procurement Partners, LLC (j)  Healthcare Software  Delayed Draw Term Loan
(3M USD TERM SOFR+6.50%), 11.87% Cash, 5/12/2026		  11/12/2020  $10,300,000    10,223,547    10,300,000    2.9%
Procurement Partners Holdings LLC (h)  Healthcare Software  Class A Units  11/12/2020   571,219    571,219    825,014    0.2%
      Total Healthcare Software           117,041,724    120,488,610    33.5%
Roscoe Medical, Inc. (h)  Healthcare Supply  Common Stock  3/26/2014   5,081    508,077    -    0.0%
      Total Healthcare Supply           508,077    -    0.0%

 

8

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original
Acquisition
Date		  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Book4Time, Inc. (a)(d)  Hospitality/Hotel  First Lien Term Loan
(3M USD TERM SOFR+7.50%), 12.87%, 12/22/2025		  12/22/2020  $3,136,517    3,121,291    3,136,517    0.9%
Book4Time, Inc. (a)  Hospitality/Hotel  Delayed Draw Term Loan
(3M USD TERM SOFR+7.50%), 12.87%, 12/22/2025		  12/22/2020  $2,000,000    1,988,440    2,000,000    0.6%
Book4Time, Inc. (a)(h)(i)  Hospitality/Hotel  Class A Preferred Shares  12/22/2020   200,000    156,826    363,008    0.1%
Knowland Group, LLC (k)  Hospitality/Hotel  Second Lien Term Loan
(3M USD TERM SOFR+8.00%), 16.52% Cash/3.00% PIK, 12/31/2024		  11/9/2018  $15,878,989    15,878,989    9,632,195    2.7%
Sceptre Hospitality Resources, LLC  Hospitality/Hotel  First Lien Term Loan
(3M USD TERM SOFR+7.25%), 12.62% Cash, 11/15/2027		  4/27/2020  $23,000,000    22,824,663    23,046,000    6.4%
Sceptre Hospitality Resources, LLC (j)  Hospitality/Hotel  Delayed Draw Term Loan
(3M USD TERM SOFR+7.25%), 12.62% Cash, 11/15/2027		  9/2/2021  $-    -    -    0.0%
      Total Hospitality/Hotel           43,970,209    38,177,720    10.7%
Granite Comfort, LP (d)  HVAC Services and Sales  First Lien Term Loan
(3M USD TERM SOFR+8.13%), 13.50% Cash, 11/16/2025		  11/16/2020  $43,000,000    42,768,427    43,017,200    12.0%
Granite Comfort, LP (j)  HVAC Services and Sales  Delayed Draw Term Loan
(3M USD TERM SOFR+8.13%), 13.50% Cash, 11/16/2025		  11/16/2020  $26,250,000    25,978,236    26,260,500    7.3%
      Total HVAC Services and Sales           68,746,663    69,277,700    19.3%
Vector Controls Holding Co., LLC (d)  Industrial Products  First Lien Term Loan
(3M USD TERM SOFR+6.50%), 11.75% Cash, 3/6/2025		  3/6/2013  $1,465,386    1,465,386    1,465,386    0.4%
Vector Controls Holding Co., LLC (h)  Industrial Products  Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027  5/31/2015   343    -    7,995,842    2.2%
      Total Industrial Products           1,465,386    9,461,228    2.6%
AgencyBloc, LLC  Insurance Software  First Lien Term Loan
(1M USD BSBY+8.00%), 13.37% Cash, 10/1/2026		  10/1/2021  $13,368,068    13,289,222    13,368,068    3.7%
Panther ParentCo LLC (h)  Insurance Software  Class A Units  10/1/2021   2,500,000    2,500,000    4,030,125    1.1%
      Total Insurance Software           15,789,222    17,398,193    4.8%
LogicMonitor, Inc. (d)  IT Services  First Lien Term Loan
(3M USD TERM SOFR+6.50%), 11.87% Cash, 5/17/2026		  3/20/2020  $43,000,000    42,967,165    43,000,000    12.0%
        Total IT Services           42,967,165    43,000,000    12.0%
ActiveProspect, Inc. (d)  Lead Management Software  First Lien Term Loan
(3M USD TERM SOFR+6.00%), 11.57% Cash, 8/8/2027		  8/8/2022  $12,000,000    11,915,633    12,120,000    3.4%

 

9

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original
Acquisition
Date		  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
ActiveProspect, Inc. (j)  Lead Management Software  Delayed Draw Term Loan
(3M USD TERM SOFR+6.00%), 11.57% Cash, 8/8/2027		  8/8/2022  $-    -    -    0.0%
      Total Lead Management Software           11,915,633    12,120,000    3.4%
Centerbase, LLC  Legal Software  First Lien Term Loan
(3M USD TERM SOFR+7.75%), 13.12% Cash, 1/18/2027		  1/18/2022  $21,086,880    20,925,530    20,776,903    5.8%
      Total Legal Software           20,925,530    20,776,903    5.8%
Madison Logic, Inc. (d)  Marketing Orchestration Software  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.37% Cash, 12/30/2028		  12/30/2022  $18,905,000    18,577,980    18,630,878    5.2%
      Total Marketing Orchestration Software           18,577,980    18,630,878    5.2%
ARC Health OpCo LLC (d)  Mental Healthcare Services  First Lien Term Loan
(3M USD TERM SOFR+8.47%), 13.84% Cash, 8/5/2027		  8/5/2022  $6,500,000    6,434,853    6,568,250    1.8%
ARC Health OpCo LLC (d)(j)  Mental Healthcare Services  Delayed Draw Term Loan
(3M USD TERM SOFR+8.47%), 13.84% Cash, 8/5/2027		  8/5/2022  $26,914,577    26,902,450    27,197,180    7.6%
ARC Health OpCo LLC (h)  Mental Healthcare Services  Class A Preferred Units  8/5/2022   3,818,400    4,169,599    4,314,792    1.2%
      Total Mental Healthcare Services           37,506,902    38,080,222    10.6%
Chronus LLC  Mentoring Software  First Lien Term Loan
(3M USD TERM SOFR+5.25), 10.77% Cash, 8/26/2026		  8/26/2021  $15,000,000    14,905,503    14,715,000    4.1%
Chronus LLC  Mentoring Software  First Lien Term Loan
(3M USD TERM SOFR+6.00), 11.52% Cash, 8/26/2026		  8/26/2021  $5,000,000    4,959,057    4,905,000    1.4%
Chronus LLC (h)  Mentoring Software  Series A Preferred Stock  8/26/2021   3,000    3,000,000    2,343,035    0.7%
      Total Mentoring Software           22,864,560    21,963,035    6.2%
Omatic Software, LLC  Non-profit Services  First Lien Term Loan
(3M USD TERM SOFR+8.00%), 14.63% Cash/1.00% PIK, 6/30/2024		  5/29/2018  $14,230,244    14,210,779    14,190,399    3.9%
      Total Non-profit Services           14,210,779    14,190,399    3.9%
Emily Street Enterprises, L.L.C.  Office Supplies  Senior Secured Note
(3M USD TERM SOFR+7.50%), 12.87% Cash, 12/31/2025		  12/28/2012  $6,000,000    5,991,114    6,028,200    1.7%
Emily Street Enterprises, L.L.C. (h)  Office Supplies  Warrant Membership Interests,                          
Expires 12/31/2025		  12/28/2012   49,318    400,000    995,001    0.3%
      Total Office Supplies           6,391,114    7,023,201    2.0%
Buildout, Inc. (d)  Real Estate Services  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.47% Cash, 7/9/2025		  7/9/2020  $14,000,000    13,942,540    13,792,800    3.8%
Buildout, Inc.  Real Estate Services  Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.47% Cash, 7/9/2025		  2/12/2021  $38,500,000    38,318,136    37,930,200    10.5%

 

10

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original
Acquisition
Date		  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Buildout, Inc. (h)(i)  Real Estate Services  Limited Partner Interests  7/9/2020   1,250    1,372,557    1,404,599    0.4%
      Total Real Estate Services           53,633,233    53,127,599    14.7%
Wellspring Worldwide Inc.  Research Software  First Lien Term Loan
(1M USD BSBY+7.25%), 12.62% Cash, 6/27/2027		  6/27/2022  $9,576,000    9,493,397    9,524,290    2.6%
Archimedes Parent LLC (h)  Research Software  Class A Common Units  6/27/2022   1,125,160    1,125,160    1,107,618    0.3%
      Total Research Software           10,618,557    10,631,908    2.9%
LFR Chicken LLC  Restaurant  First Lien Term Loan
(1M USD TERM SOFR+7.00%), 12.34% Cash, 11/19/2026		  11/19/2021  $12,000,000    11,921,441    11,997,600    3.3%
LFR Chicken LLC  Restaurant  Delayed Draw Term Loan
(1M USD TERM SOFR+7.00%), 12.34% Cash, 11/19/2026		  11/19/2021  $9,000,000    8,932,176    8,998,200    2.5%
LFR Chicken LLC (h)  Restaurant  Series B Preferred Units  11/19/2021   497,183    1,000,000    1,408,936    0.4%
      Total Restaurant           21,853,617    22,404,736    6.2%
JobNimbus LLC  Roofing Contractor Software  First Lien Term Loan
(3M USD TERM SOFR+8.75%), 14.27% Cash, 9/20/2026		  3/28/2023  $9,950,000    9,865,212    10,001,740    2.8%
      Total Roofing Contractor Software           9,865,212    10,001,740    2.8%
Pepper Palace, Inc. (d)(k)  Specialty Food Retailer  First Lien Term Loan
(3M USD TERM SOFR+6.25%), 11.77% Cash, 6/30/2026		  6/30/2021  $33,320,000    33,129,970    4,821,774    1.3%
Pepper Palace, Inc. (j)(k)  Specialty Food Retailer  Delayed Draw Term Loan
(3M USD TERM SOFR+6.25%), 11.77% Cash, 6/30/2026		  6/30/2021  $1,101,600    1,091,442    159,414    0.0%
Pepper Palace, Inc. (j)(k)  Specialty Food Retailer  Revolving Credit Facility
(3M USD TERM SOFR+6.25%), 11.77% Cash, 6/30/2026		  6/30/2021  $-    -    -    0.0%
Pepper Palace, Inc. (h)  Specialty Food Retailer  Membership Interest (Series A)  6/30/2021   1,000,000    1,000,000    -    0.0%
Pepper Palace, Inc. (h)  Specialty Food Retailer  Membership Interest (Series B)  6/30/2021   197,035    197,035    -    0.0%
      Total Specialty Food Retailer           35,418,447    4,981,188    1.3%
ArbiterSports, LLC (d)  Sports Management  First Lien Term Loan
(3M USD TERM SOFR+6.00%), 11.37% Cash, 2/21/2025		  2/21/2020  $26,000,000    25,933,625    25,994,800    7.2%
ArbiterSports, LLC  Sports Management  Delayed Draw Term Loan
(3M USD TERM SOFR+6.00%), 11.37% Cash, 2/21/2025		  2/21/2020  $1,000,000    1,000,000    999,800    0.3%
      Total Sports Management           26,933,625    26,994,600    7.5%
Avionte Holdings, LLC (h)  Staffing Services  Class A Units  1/8/2014   100,000    100,000    2,089,107    0.6%
      Total Staffing Services           100,000    2,089,107    0.6%

 

11

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original
Acquisition
Date		  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
JDXpert  Talent Acquisition Software  First Lien Term Loan
(3M USD TERM SOFR+8.50%), 14.13% Cash, 5/2/2027		  5/2/2022  $6,000,000    5,952,909    6,120,000    1.7%
JDXpert (j)  Talent Acquisition Software  Delayed Draw Term Loan
(3M USD TERM SOFR+8.50%), 14.13% Cash, 5/2/2027		  5/2/2022  $1,000,000    991,053    1,020,000    0.3%
Jobvite, Inc. (d)  Talent Acquisition Software  First Lien Term Loan
(6M USD TERM SOFR+8.00%), 13.33% Cash, 8/5/2028		  8/5/2022  $20,000,000    19,872,540    19,960,000    5.8%
      Total Talent Acquisition Software           26,816,502    27,100,000    7.8%
VetnCare MSO, LLC (j)  Veterinary Services  Delayed Draw Term Loan
(3M USD TERM SOFR+5.75%), 11.12% Cash, 5/12/2028		  5/12/2023  $4,680,505    4,635,792    4,689,864    1.3%
      Total Veterinary Services           4,635,792    4,689,864    1.3%
Sub Total Non-control/Non-affiliate investments                 983,711,569    976,440,074    272.2%
Affiliate investments - 16.2% (b)                             
ETU Holdings, Inc. (f)  Corporate Education Software  First Lien Term Loan
(3M USD TERM SOFR+9.00%), 14.52% Cash, 8/18/2027		  8/18/2022  $7,000,000    6,942,570    6,909,700    1.9%
ETU Holdings, Inc. (f)  Corporate Education Software  Second Lien Term Loan
15.00% PIK, 2/18/2028		  8/18/2022  $5,906,527    5,863,709    5,240,861    1.5%
ETU Holdings, Inc. (f)(h)  Corporate Education Software  Series A Preferred Units  8/18/2022   3,000,000    3,000,000    1,370,911    0.4%
      Total Corporate Education Software           15,806,279    13,521,472    3.8%
Modis Dental Partners OpCo, LLC (f)  Dental Practice Management  First Lien Term Loan
(1M USD TERM SOFR+9.48%), 14.82% Cash, 4/18/2028		  4/18/2023  $7,000,000    6,902,386    6,988,800    1.9%
Modis Dental Partners OpCo, LLC (j)(f)  Dental Practice Management  Delayed Draw Term Loan
(1M USD TERM SOFR+9.48%), 14.82% Cash, 4/18/2028		  4/18/2023  $-    -    -    0.0%
Modis Dental Partners OpCo, LLC (f)(h)  Dental Practice Management  Class A Preferred Units  4/18/2023   1,950,000    1,950,000    1,872,000    0.5%
      Total Dental Practice Management           8,852,386    8,860,800    2.4%
Axero Holdings, LLC (f)  Employee Collaboration Software  First Lien Term Loan
(3M USD TERM SOFR+10.00%), 15.52% Cash, 6/30/2026		  6/30/2021  $5,500,000    5,465,822    5,538,500    1.5%
Axero Holdings, LLC (f)  Employee Collaboration Software  Delayed Draw Term Loan
(3M USD TERM SOFR+10.00%), 15.52% Cash, 6/30/2026		  6/30/2021  $1,100,000    1,092,183    1,107,700    0.3%
Axero Holdings, LLC (f)(j)  Employee Collaboration Software  Revolving Credit Facility
(3M USD TERM SOFR+10.00%), 15.52% Cash, 6/30/2026		  2/3/2022  $-    -    -    0.0%

 

12

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original
Acquisition
Date		  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Axero Holdings, LLC (f)(h)  Employee Collaboration Software  Series A Preferred Units  6/30/2021   2,055,609    2,055,609    2,801,000    0.8%
Axero Holdings, LLC (f)(h)  Employee Collaboration Software  Series B Preferred Units  6/30/2021   2,055,609    2,055,609    4,446,367    1.2%
      Total Employee Collaboration Software           10,669,223    13,893,567    3.8%
Alpha Aesthetics Partners OpCo, LLC (f)  Healthcare Services  First Lien Term Loan
(1M USD TERM SOFR+9.98%), 15.32% Cash, 3/20/2028		  3/20/2023  $3,900,000    3,845,631    3,891,810    1.2%
Alpha Aesthetics Partners OpCo, LLC (f)(j)  Healthcare Services  Delayed Draw Term Loan
(1M USD TERM SOFR+9.98%), 15.32% Cash, 3/20/2028		  3/20/2023  $4,880,496    4,811,222    4,870,247    1.4%
Alpha Aesthetics Partners OpCo, LLC (f)(h)  Healthcare Services  Class A Preferred Units  3/20/2023   1,850,000    1,850,000    2,090,501    0.6%
      Total Healthcare Services           10,506,853    10,852,558    3.2%
Sub Total Affiliate investments                 45,834,741    47,128,397    13.2%
Control investments - 25.2% (b)                             
Netreo Holdings, LLC (g)  IT Services  First Lien Term Loan
(3M USD TERM SOFR +6.50%), 15.52% Cash/3.50% PIK
12/31/2025		  7/3/2018  $5,643,670    5,632,944    5,515,558    1.5%
Netreo Holdings, LLC (d)(g)  IT Services  Delayed Draw Term Loan
(3M USD TERM SOFR +6.50%), 15.52% Cash/3.50% PIK,
12/31/2025		  5/26/2020  $25,048,948    24,957,841    24,480,337    6.8%
Netreo Holdings, LLC (g)(h)  IT Services  Common Stock Class A Units  7/3/2018   4,600,677    8,344,500    5,675,795    1.6%
      Total IT Services           38,935,285    35,671,690    9.9%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a)(e)(g)  Structured Finance Securities  Other/Structured Finance Securities
0.00%, 4/20/2033		  1/22/2008  $111,000,000    23,412,409    8,938,522    2.5%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a)(g)  Structured Finance Securities  Other/Structured Finance Securities
(3M USD TERM SOFR+10.00%), 15.37%, 4/20/2033		  8/9/2021  $9,375,000    9,375,000    8,981,565    2.5%
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note (a)(g)  Structured Finance Securities  Other/Structured Finance Securities
(3M USD TERM SOFR+8.55%), 13.92%, 10/20/2033		  10/28/2022  $12,250,000    11,392,500    11,467,384    3.2%
      Total Structured Finance Securities           44,179,909    29,387,471    8.2%
Saratoga Senior Loan Fund I JV, LLC (a)(g)(j)  Investment Fund  Unsecured Loan
10.00%, 10/20/2033		  2/17/2022  $17,618,954    17,618,954    17,618,954    4.9%
Saratoga Senior Loan Fund I JV, LLC (a)(g)  Investment Fund  Membership Interest  2/17/2022   17,583,486    17,583,486    7,792,023    2.2%
      Total Investment Fund           35,202,440    25,410,977    7.1%
Sub Total Control investments                 118,317,634    90,470,138    25.2%
TOTAL INVESTMENTS - 310.6% (b)                $1,147,863,944   $1,114,038,609    310.6%

 

13

 

 

   Number of
Shares		   Cost   Fair Value   % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 13.1% (b)                    
U.S. Bank Money Market (l)   47,026,499   $47,026,499   $47,026,499    13.1%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts   47,026,499   $47,026,499   $47,026,499    13.1%

 

 

(1)Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities.
(a)Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of November 30, 2023, non-qualifying assets represent 6.2% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.
(b)Percentages are based on net assets of $359,558,749 as of November 30, 2023.
(c)Because there is no “readily available market quotations” (as defined in the 1940 Act) for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors.  These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements).
(d)These securities are either fully or partially pledged as collateral under the Company’s senior secured revolving credit facility (see Note 8 to the consolidated financial statements).
(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 0.00% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment.
(f)As defined in the 1940 Act, this portfolio company is an “affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. Transactions during the nine months ended November 30, 2023 in which the issuer was an affiliate are as follows:

 

Company  Purchases   Sales   Total Interest from Investments   Management Fee Income   Net Realized
Gain (Loss) from Investments		   Net Change in Unrealized Appreciation (Depreciation) 
Axero Holdings, LLC  $
-
   $
-
   $691,807   $
        -
   $
        -
   $723,935 
ETU Holdings, Inc.   
-
    
-
    1,425,096    
-
    
-
    (2,367,949)
Modis Dental Partners OpCo, LLC   8,845,000    
-
    656,579    
-
    
-
    8,414 
Alpha Aesthetics Partners OpCo, LLC   10,498,789    
-
    424,543    
-
    
-
    345,705 
Total  $19,343,789   $
-
   $3,198,025   $
-
   $
-
   $(1,289,895)

 

14

 

 

(g)As defined in the 1940 Act, we “control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the nine months ended November 30, 2023 in which the issuer was both an affiliate and a portfolio company that we control are as follows:

 

Company  Purchases   Sales   Total Interest
from
Investments		   Management
Fee Income		   Net Realized
Gain (Loss)
from Investments		   Net Change
in Unrealized
Appreciation
(Depreciation)		 
Netreo Holdings, LLC  $2,475,000   $
         -
   $3,151,257   $
-
   $
           -
   $(11,543,808)
Saratoga Investment Corp. CLO 2013-1, Ltd.   
-
    
-
    
-
    2,453,967    
-
    (6,706,561)
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note   
-
    
-
    1,265,735    
-
    
-
    112,889 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note   
-
    
-
    1,099,141    
-
    
-
    150,159 
Saratoga Senior Loan Fund I JV, LLC   
-
    
-
    1,340,998    
-
    
-
    
-
 
Saratoga Senior Loan Fund I JV, LLC   
-
    
-
    
-
    
-
    
-
    (5,314,928)
Total  $2,475,000   $
-
   $6,857,131   $2,453,967   $
-
   $(23,302,249)

 

(h)Non-income producing at November 30, 2023.
(i)Includes securities issued by an affiliate of the company.
(j)All or a portion of this investment has an unfunded commitment as of November 30, 2023. (See Note 9 to the consolidated financial statements).
(k)As of November 30, 2023, the investment was on non-accrual status. The fair value of these investments was approximately $29.2 million, which represented 2.6% of the Company’s portfolio (see Note 2 to the consolidated financial statements).
(l)Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of November 30, 2023.

 

BSBY - Bloomberg Short-Term Bank Yield

SOFR - Secured Overnight Financing Rate

 

1M USD BSBY - The 1 month USD BSBY rate as of November 30, 2023 was 5.37%.

1M USD TERM SOFR - The 1 month USD TERM SOFR rate as of November 30, 2023 was 5.34%.

3M USD TERM SOFR - The 3 month USD TERM SOFR rate as of November 30, 2023 was 5.37%.

6M USD TERM SOFR - The 6 month USD TERM SOFR rate as of November 30, 2023 was 5.33%.

PIK - Payment-in-Kind (see Note 2 to the consolidated financial statements).

 

See accompanying notes to consolidated financial statements.

 

15

 

 

Saratoga Investment Corp.

Consolidated Schedule of Investments

February 28, 2023

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Non-control/Non-affiliate investments - 238.6% (b)                             
Altvia MidCo, LLC.  Alternative Investment Management Software  First Lien Term Loan
(3M USD TERM SOFR+8.50%), 13.39% Cash, 7/18/2027		  7/18/2022  $7,980,000   $7,907,457   $7,911,372    2.3%
Altvia MidCo, LLC. (h)  Alternative Investment Management Software  Series A-1 Preferred Shares  7/18/2022   2,000,000    2,000,000    2,548,000    0.7%
      Total Alternative Investment Management Software           9,907,457    10,459,372    3.0%
Artemis Wax Corp. (d)(j)  Consumer Services  Delayed Draw Term Loan
(1M USD TERM SOFR+6.75%), 11.41% Cash, 5/20/2026		  5/20/2021  $57,500,000    57,059,057    57,500,000    16.6%
Artemis Wax Corp. (h)  Consumer Services  Series B-1 Preferred Stock  5/20/2021   934,463    1,500,000    4,642,322    1.3%
Artemis Wax Corp. (h)  Consumer Services  Series D Preferred Stock  12/22/2022   278,769    1,500,000    1,500,005    0.4%
      Total Consumer Services           60,059,057    63,642,327    18.3%
Schoox, Inc. (h), (i)  Corporate Education Software  Series 1 Membership Interest  12/8/2020   1,050    475,698    3,809,091    1.1%
      Total Corporate Education Software           475,698    3,809,091    1.1%
GreyHeller LLC (h)  Cyber Security  Common Stock  11/10/2021   7,857,689    1,906,275    2,509,210    0.7%
      Total Cyber Security           1,906,275    2,509,210    0.7%
New England Dental Partners  Dental Practice Management  First Lien Term Loan
(3M USD LIBOR+8.00%), 12.97% Cash, 11/25/2025		  11/25/2020  $6,555,000    6,514,437    6,523,536    1.9%
New England Dental Partners  Dental Practice Management  Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 12.97% Cash, 11/25/2025		  11/25/2020  $4,650,000    4,627,032    4,627,680    1.3%
Gen4 Dental Partners Holdings, LLC (j)  Dental Practice Management  Delayed Draw Term Loan
(3M USD TERM SOFR+10.35%), 15.24% Cash, 4/29/2026		  2/8/2023  $-    (94,504)   -    0.0%
Gen4 Dental Partners Holdings, LLC (i)  Dental Practice Management  Series A Preferred Units  2/8/2023   480,769    1,000,000    1,000,000    0.3%
      Total Dental Practice Management           12,046,965    12,151,216    3.5%

 

16

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Exigo, LLC (d)  Direct Selling Software  First Lien Term Loan
(1M USD LIBOR+5.75%), 10.42% Cash, 3/16/2027		  3/16/2022  $24,812,500    24,632,494    24,504,825    7.1%
Exigo, LLC (j)  Direct Selling Software  Delayed Draw Term Loan
(1M USD LIBOR+5.75%), 10.42% Cash, 3/16/2027		  3/16/2022  $-    -    (51,667)   0.0%
Exigo, LLC (j)  Direct Selling Software  Revolving Credit Facility
(1M USD LIBOR+5.75%), 10.42% Cash, 3/16/2027		  3/16/2022  $208,334    208,333    195,417    0.1%
Exigo, LLC (h), (i)  Direct Selling Software  Common Units  3/16/2022   1,041,667    1,041,667    1,121,575    0.3%
      Total Direct Selling Software           25,882,494    25,770,150    7.5%
C2 Educational Systems (d)  Education Services  First Lien Term Loan
(3M USD LIBOR+8.50%), 13.47% Cash, 5/31/2023		  5/31/2017  $18,500,000    18,497,146    18,525,900    5.3%
C2 Education Systems, Inc. (h)  Education Services  Series A-1 Preferred Stock  5/18/2021   3,127    499,904    629,892    0.2%
Zollege PBC  Education Services  First Lien Term Loan
(3M USD LIBOR+7.00%), 11.97% Cash, 5/11/2026		  5/11/2021  $16,000,000    15,905,830    14,827,200    4.3%
Zollege PBC (j)  Education Services  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 11.97% Cash, 5/11/2026		  5/11/2021  $500,000    496,809    390,050    0.1%
Zollege PBC (h)  Education Services  Class A Units  5/11/2021   250,000    250,000    115,676    0.0%
      Total Education Services           35,649,689    34,488,718    9.9%
Destiny Solutions Inc. (h), (i)  Education Software  Limited Partner Interests  5/16/2018   3,068    3,969,291    8,941,350    2.6%
GoReact  Education Software  First Lien Term Loan
(3M USD TERM SOFR+7.50%), 13.59% Cash, 1/17/2025		  1/17/2020  $8,006,000    7,952,042    7,982,783    2.3%
GoReact (j)  Education Software  Delayed Draw Term Loan
(3M USD TERM SOFR+7.50%), 13.59% Cash, 1/17/2025		  1/18/2022  $1,000,750    1,000,750    997,848    0.3%
Identity Automation Systems (h)  Education Software  Common Stock Class A-2 Units  8/25/2014   232,616    232,616    218,168    0.1%
Identity Automation Systems (h)  Education Software  Common Stock Class A-1 Units  3/6/2020   43,715    171,571    217,370    0.1%
Ready Education  Education Software  First Lien Term Loan
(3M USD TERM SOFR+6.00%), 10.89% Cash, 8/5/2027		  8/5/2022  $27,000,000    26,751,573    26,597,700    7.7%
      Total Education Software           40,077,843    44,955,219    13.1%
TG Pressure Washing Holdings, LLC (h)  Facilities Maintenance  Preferred Equity  8/12/2019   488,148    488,148    407,760    0.1%
      Total Facilities Maintenance           488,148    407,760    0.1%

 

17

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair Value (c)   % of
Net Assets		 
Davisware, LLC  Field Service Management  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 11.89% Cash, 7/31/2024		  9/6/2019  $6,000,000    5,972,735    5,988,000    1.7%
Davisware, LLC  Field Service Management  Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 11.89% Cash, 7/31/2024		  9/6/2019  $3,977,790    3,950,992    3,969,834    1.1%
      Total Field Service Management           9,923,727    9,957,834    2.8%
B. Riley Financial, Inc. (a)  Financial Services  Senior Unsecured Loan
6.75% Cash, 5/31/2024		  10/18/2022  $165,301    165,301    160,077    0.0%
GDS Software Holdings, LLC  Financial Services  First Lien Term Loan
(3M USD LIBOR+7.00%), 11.97% Cash, 12/30/2026		  12/30/2021  $22,713,926    22,603,970    22,311,890    6.4%
GDS Software Holdings, LLC  Financial Services  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 11.97% Cash, 12/30/2026		  12/30/2021  $3,286,074    3,257,297    3,227,910    0.9%
GDS Software Holdings, LLC  (h)  Financial Services  Common Stock Class A Units  8/23/2018   250,000    250,000    518,413    0.1%
      Total Financial Services           26,276,568    26,218,290