John M Lund Photography Inc/DigitalVision via Getty Images Overview When investing into business development companies, I tend to focus on how sustainable the high yield is. After all, the high yield is the main appeal as I use BDCs to prioritize and add income to my portfolio. I came across SLR Investment Corp (NASDAQ:SLRC) this past weekend and wanted to see if it met my standards. For me to consider a BDC, they have to meet the following criteria: Diverse portfolio of investments across different sector ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements%2E) This section provides the consolidated financial statements, including assets, liabilities, operations, changes in net assets, cash flows, and investment schedules for the quarter ended March 31, 2024 [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) The company reported total assets of **$1.093 billion** and net assets of **$608.3 million** as of March 31, 2024, with stable NAV per share Consolidated Statements of Assets and Liabilities (in thousands) | Account | March 31, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **Total investments, at fair value** | **$1,048,071** | **$957,906** | | Cash and cash equivalents | $27,122 | $119,131 | | **Total assets** | **$1,092,743** | **$1,090,898** | | SBA debentures, net | $170,176 | $204,472 | | Notes, net | $247,521 | $247,243 | | **Total liabilities** | **$484,403** | **$501,424** | | **Total net assets** | **$608,340** | **$589,474** | | **Net asset value per common share** | **$19.36** | **$19.37** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Total investment income increased to **$34.7 million**, leading to a **$17.6 million** net investment income and a **$20.1 million** net increase in net assets from operations Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Total investment income | $34,651 | $29,056 | | Total expenses, net | $17,044 | $14,296 | | **Net investment income** | **$17,627** | **$14,723** | | Net gain (loss) on investments | $3,017 | $766 | | **Net increase in net assets from operations** | **$20,123** | **$15,489** | | Net investment income per share | $0.57 | $0.59 | | Net increase in net assets per share | $0.65 | $0.62 | | Dividends declared per share | $0.65 | $0.66 | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased by **$18.9 million** to **$608.3 million** in Q1 2024, driven by a public offering and net increase from operations, partially offset by dividends Changes in Net Assets - Q1 2024 (in thousands) | Description | Amount | | :--- | :--- | | Balances at December 31, 2023 | $589,474 | | Public offering of common stock, net | $19,170 | | Net investment income | $17,627 | | Net realized gain on investments, net of taxes | $1,799 | | Net unrealized appreciation on investments | $1,218 | | Realized losses on extinguishment of debt | ($521) | | Dividends declared | ($20,427) | | **Balances at March 31, 2024** | **$608,340** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company reported a net cash decrease of **$92.0 million** in Q1 2024, primarily due to cash used in operating and financing activities Cash Flow Summary - Q1 2024 vs Q1 2023 (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used for operating activities | ($77,823) | ($41,208) | | Net cash (used for) provided by financing activities | ($14,186) | $15,276 | | **Net (decrease) in cash and cash equivalents** | **($92,009)** | **($25,932)** | | Cash and cash equivalents, beginning of period | $119,131 | $62,350 | | **Cash and cash equivalents, end of period** | **$27,122** | **$36,418** | [Consolidated Schedules of Investments](index=8&type=section&id=Consolidated%20Schedules%20of%20Investments) The investment portfolio's fair value reached **$1.048 billion**, primarily in **First Lien Debt (60.3%)** across 87 companies, with a **14.0%** weighted average yield Portfolio Composition by Investment Type (Fair Value) | Investment Type | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | First Lien Debt | 60.3% | 60.3% | | Second Lien Debt | 12.9% | 12.5% | | Subordinated Debt | 14.2% | 14.1% | | Equity | 12.0% | 12.6% | | Warrants | 0.6% | 0.5% | | **Total** | **100.0%** | **100.0%** | - The total fair value of the investment portfolio increased to **$1.048 billion** as of March 31, 2024, from **$957.9 million** as of December 31, 2023[301](index=301&type=chunk) - As of March 31, 2024, the company held investments in **87 active portfolio companies**, an increase from **81** at the end of 2023[164](index=164&type=chunk)[165](index=165&type=chunk) - Three portfolio companies remained on non-accrual status as of March 31, 2024, with a total fair value of **$10.1 million** and a cost basis of **$32.0 million**[174](index=174&type=chunk)[310](index=310&type=chunk)[311](index=311&type=chunk) [Notes to Consolidated Financial Statements (unaudited)](index=28&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%28unaudited%29) This section details the company's BDC and RIC structure, accounting policies, portfolio valuation, debt facilities, and shareholder activities, including a **14.0%** portfolio yield - Fidus operates as a BDC and RIC, utilizing its SBIC subsidiary, Fund III, to access up to **$350 million** in SBA-guaranteed debentures for leverage[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - The company's investment portfolio is valued in good faith by the Board, with a significant portion (Level 3 assets) reviewed by independent third-party valuation firms[186](index=186&type=chunk)[190](index=190&type=chunk)[193](index=193&type=chunk) - As of March 31, 2024, the company had **$463.1 million** in total debt outstanding, including SBA debentures, credit facility borrowings, notes, and secured borrowings[251](index=251&type=chunk) - In Q1 2024, the company raised **$19.2 million** in net proceeds through its at-the-market (ATM) program by issuing **987,170 shares**[262](index=262&type=chunk) - Subsequent to the quarter's end, on April 29, 2024, the Board declared a regular quarterly dividend of **$0.43 per share** and a supplemental dividend of **$0.16 per share**[279](index=279&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%2E) Management discusses the **19.3%** increase in total investment income to **$34.7 million**, portfolio growth to **$1.05 billion**, and strong liquidity with **$27.1 million** cash - Investment activity was robust in Q1 2024, with **$145.9 million** invested in debt and equity, including **seven new portfolio companies**, compared to **$51.5 million** in Q1 2023[299](index=299&type=chunk) - The weighted average yield on debt investments was **14.0%** as of March 31, 2024, a slight decrease from **14.2%** at the end of 2023[303](index=303&type=chunk) - The portfolio's asset quality remains stable, with **83.5%** of investments at fair value rated as '2' (performing as expected), and the weighted average rating was **2.0**[309](index=309&type=chunk) - Net investment income increased by **19.7%** to **$17.6 million** in Q1 2024, up from **$14.7 million** in Q1 2023, due to higher total investment income outpacing the rise in expenses[317](index=317&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) Total investment income increased by **19.3%** to **$34.7 million** in Q1 2024, leading to a **19.7%** rise in net investment income and a **$3.0 million** net gain on investments Comparison of Results of Operations (in millions) | Metric | Q1 2024 | Q1 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total investment income | $34.7 | $29.1 | $5.6 | 19.3% | | Total expenses | $17.0 | $14.3 | $2.7 | 18.8% | | **Net investment income** | **$17.6** | **$14.7** | **$2.9** | **19.7%** | | Net realized gain on investments | $1.7 | $0.1 | $1.6 | N/A | | Net unrealized appreciation | $1.2 | $0.7 | $0.5 | N/A | | **Net increase in net assets** | **$20.1** | **$15.5** | **$4.6** | **29.7%** | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$27.1 million** cash and **$77.5 million** available credit, supported by a **311.1%** asset coverage ratio and diversified capital sources - The company maintains a diversified capital structure with access to SBA debentures, a revolving credit facility, and unsecured notes[324](index=324&type=chunk)[326](index=326&type=chunk)[330](index=330&type=chunk)[331](index=331&type=chunk) - Fund III has **$175.0 million** of outstanding SBA debentures, with potential access to an additional **$175.0 million** through a new SBIC fund, subject to SBA approval[325](index=325&type=chunk) - The company's asset coverage ratio of **311.1%** as of March 31, 2024, significantly exceeds the regulatory minimum of **150%**[245](index=245&type=chunk)[335](index=335&type=chunk) - The ATM program was increased to an aggregate offering price of **$300.0 million** in February 2024, with **$162.8 million** remaining available as of March 31, 2024[338](index=338&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk%2E) The company's primary market risk is interest rate volatility, with **72.5%** of its debt portfolio in variable-rate investments, providing a natural hedge - As of March 31, 2024, **$664.6 million (72.5%)** of the company's debt investment portfolio at fair value consisted of variable-rate investments, mitigating risk in a rising rate environment[360](index=360&type=chunk) Interest Rate Sensitivity Analysis (in millions) | Basis Point Change | Net Increase (Decrease) in Net Investment Income | | :--- | :--- | | (200) | $(10.2) | | (100) | $(5.1) | | 100 | $5.2 | | 200 | $10.2 | | 300 | $15.4 | [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during Q1 2024 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[364](index=364&type=chunk) - No changes in internal control over financial reporting occurred during the first quarter of 2024 that have materially affected, or are reasonably likely to materially affect, internal controls[365](index=365&type=chunk) [PART II — OTHER INFORMATION](index=58&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings%2E) The company is not currently subject to any material legal proceedings - Fidus Investment Corporation and its Investment Advisor are not currently subject to any material legal proceedings[366](index=366&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors%2E) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes have been made to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[368](index=368&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%2E) The company reported no unregistered equity sales and made no repurchases under its **$5.0 million** stock repurchase program in Q1 2024 - There were no sales of unregistered securities during the reporting period[369](index=369&type=chunk) - The company did not repurchase any of its equity securities during the three months ended March 31, 2024, under its existing **$5.0 million** stock repurchase program[339](index=339&type=chunk)[370](index=370&type=chunk) [Defaults Upon Senior Securities](index=59&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities%2E) None - There were no defaults upon senior securities during the period[371](index=371&type=chunk) [Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures%2E) None - No mine safety disclosures were reported[372](index=372&type=chunk) [Other Information](index=59&type=section&id=Item%205.%20Other%20Information%2E) None - No other information was reported under this item[373](index=373&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits%2E) This section lists all exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, indentures, and officer certifications as required by the Sarbanes-Oxley Act

[Fidus Investment Corporation Q1 2024 Earnings Release](index=1&type=section&id=Fidus%20Investment%20Corporation%20Q1%202024%20Earnings%20Release) [Overview and Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) Fidus reported strong Q1 2024 results, with **Adjusted Net Investment Income of $0.59 per share** and a **Q2 2024 dividend of $0.59 per share** Q1 2024 Key Financial Metrics | Metric | Value | Per Share | | :--- | :--- | :--- | | Total Investment Income | $34.7 million | - | | Net Investment Income (NII) | $17.6 million | $0.57 | | Adjusted NII | $18.1 million | $0.59 | | Net Asset Value (NAV) | $608.3 million | $19.36 | | Estimated Spillover Income | $41.7 million | $1.33 | - The company invested **$145.9 million** in debt and equity securities, including seven new portfolio companies, resulting in net originations of **$85.7 million** after accounting for **$60.2 million** in repayments and realizations[3](index=3&type=chunk)[5](index=5&type=chunk) - The Board of Directors declared a total dividend of **$0.59 per share** for Q2 2024, comprising a base dividend of **$0.43** and a supplemental dividend of **$0.16**[1](index=1&type=chunk) [Financial Results Analysis](index=2&type=section&id=First%20Quarter%202024%20Financial%20Results) Q1 2024 total investment income rose **19.3% to $34.7 million**, with expenses up **18.8%**, leading to **NII per share of $0.57** [Investment Income](index=2&type=section&id=Investment%20Income) Total investment income increased by **$5.6 million (19.3%) year-over-year**, driven by higher interest, fee, and idle cash income Investment Income Comparison (Q1 2024 vs Q1 2023) | Income Category | Q1 2024 ($ thousands) | Q1 2023 ($ thousands) | % Change | | :--- | :--- | :--- | :--- | | Interest Income | 28,138 | 25,956 | 8.4% | | Payment-in-kind Interest | 2,049 | 637 | 221.7% | | Fee Income | 2,359 | 1,436 | 64.3% | | Interest on Idle Funds | 1,708 | 643 | 165.6% | | **Total Investment Income** | **34,651** | **29,056** | **19.3%** | [Expenses](index=2&type=section&id=Expenses) Total expenses for Q1 2024 increased by **$2.7 million (18.8%)** to **$17.0 million**, primarily due to higher interest, financing, and incentive fees - Expense increase was driven by a **$0.8 million** rise in interest and financing expenses, a **$0.5 million** net increase in base management fees, a **$0.9 million** increase in income incentive fees, and a **$0.3 million** increase in accrued capital gains incentive fees[8](index=8&type=chunk) [Net Investment Income and Net Assets](index=2&type=section&id=Net%20Investment%20Income%20and%20Net%20Assets) Net investment income increased **19.7% to $17.6 million**, with **NII per share at $0.57** and **net assets from operations rising to $20.1 million** Per Share Results Comparison (Q1 2024 vs Q1 2023) | Metric (per share) | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Investment Income | $0.57 | $0.59 | ($0.02) | | Adjusted Net Investment Income | $0.59 | $0.60 | ($0.01) | | Net Increase in Net Assets | $0.65 | $0.62 | $0.03 | - Net realized gain on investments for Q1 2024 was **$1.8 million**, a significant increase from the **$0.1 million** gain in the same period in 2023[10](index=10&type=chunk) [Portfolio and Investment Activities](index=4&type=section&id=Portfolio%20and%20Investment%20Activities) As of March 31, 2024, the investment portfolio was valued at **$1.05 billion** across **87 companies**, with a **14.0% weighted average yield** Portfolio Snapshot as of March 31, 2024 | Metric | Value | | :--- | :--- | | Total Fair Value | $1,048.1 million | | Active Portfolio Companies | 87 | | Fair Value as % of Cost | 102.2% | | Weighted Average Yield on Debt | 14.0% | | % of Debt at Variable Rate | 72.5% | - New investments in Q1 2024 included seven new portfolio companies: Donovan Food Brokerage, LLC; Informatics Holdings, Inc. (Wasp Barcode Technologies); Janus Health Technologies, Inc., LLC; Quantum IR Technologies, LLC, LLC; R.F. Fager Company LLC, LLC; ServicePower, Inc., LLC; and W50 Holdings, LLC, LLC[12](index=12&type=chunk)[14](index=14&type=chunk) [Liquidity, Capital Resources, and Dividends](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) Fidus ended Q1 2024 with **$27.1 million in cash** and **$77.5 million in credit capacity**, declaring a **Q2 2024 dividend of $0.59 per share** - As of March 31, 2024, the company had **$27.1 million** in cash and cash equivalents and **$77.5 million** of unused capacity under its credit facility[12](index=12&type=chunk) - Total debt outstanding included **$175.0 million** in SBA debentures and **$250.0 million** in notes, with a combined weighted average interest rate of **4.6%**[12](index=12&type=chunk) - The board declared a Q2 2024 dividend totaling **$0.59 per share** (**$0.43 base** + **$0.16 supplemental**), payable on June 26, 2024, to stockholders of record as of June 19, 2024[13](index=13&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Consolidated Statements of Assets and Liabilities](index=7&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of March 31, 2024, total assets were **$1.09 billion**, total investments **$1.05 billion**, and **NAV per share was $19.36** Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Investments, at fair value | $1,048,071 | $957,906 | | Cash and cash equivalents | $27,122 | $119,131 | | **Total Assets** | **$1,092,743** | **$1,090,898** | | Total Liabilities | $484,403 | $501,424 | | **Total Net Assets** | **$608,340** | **$589,474** | | **NAV per share** | **$19.36** | **$19.37** | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 saw **total investment income of $34.7 million**, **net investment income of $17.6 million ($0.57 per share)**, and **net assets increase of $20.1 million ($0.65 per share)** Income Statement Summary (Q1 2024, in thousands) | Account | Amount | | :--- | :--- | | Total Investment Income | $34,651 | | Total Expenses, net | $17,044 | | **Net Investment Income** | **$17,627** | | Net Gain on Investments | $3,017 | | **Net Increase in Net Assets** | **$20,123** | | NII per share | $0.57 | | Net Increase in Net Assets per share | $0.65 | [Non-GAAP Reconciliation: Adjusted Net Investment Income](index=10&type=section&id=Schedule%201) This section reconciles GAAP NII to Adjusted NII, reporting **Q1 2024 Adjusted NII of $18.1 million ($0.59 per share)**, excluding capital gains incentive fees - Adjusted NII is presented as a useful indicator of operations exclusive of any capital gains incentive fee expense or reversal attributable to realized and unrealized gains and losses[6](index=6&type=chunk)[29](index=29&type=chunk) Reconciliation of NII to Adjusted NII (Q1 2024, in thousands) | Metric | Amount | Per Share | | :--- | :--- | :--- | | Net Investment Income (GAAP) | $17,627 | $0.57 | | Add: Capital gains incentive fee | $499 | $0.02 | | **Adjusted Net Investment Income (Non-GAAP)** | **$18,126** | **$0.59** |

tadamichi December last year, I began covering several BDCs and one of them was Fidus Investment (NASDAQ:FDUS). At that time considering FDUS's fundamentals and market environment, I decided to assume a more neutral stance setting a "hold" rating. Since the publication of my article, the BDC has underperformed the benchmark by roughly 230 basis points (on a total return basis). YCharts In general, early start of 2024 has brought many divergences in the BDC space, where the gap between outperformers and ...

marekuliasz In this article, we catch up on Q4 results from the Business Development Company ("BDC") Fidus Investment (NASDAQ:FDUS). FDUS trades at a total dividend yield of 13.4% and a 100% valuation. FDUS invests in the lower middle-market segment and is overweight the Technology sector. Our key takeaway is that FDUS offers one of the best opportunities in the BDC market, particularly for investors who want to diversify away from the upper middle-market popular names like ARCC, OCSL, OBDC and others. ...

Exhibit 99.1 FIDUS INVESTMENT CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS Board of Directors Declared Total Dividends of $0.65 per Share for First Quarter 2024 Base Dividend of $0.43 and Supplemental Dividend of $0.22 Per Share EVANSTON, Ill., February 29, 2024 – Fidus Investment Corporation (NASDAQ:FDUS) ("Fidus" or the "Company"), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announce ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 814-00861 FIDUS INVESTMENT CORPORATION (Exact Name of Registrant as Specified in Its Charter) Maryland 27-5017321 (State or Other Jurisdicti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 814-00861 Fidus Investment Corporation (Exact Name of Registrant as Specified in its Charter) Maryland 27-50173 ...

FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 814-00861 Fidus Investment Corporation (Exact Name of Registrant as Specified in its Charter) Maryland 27-5017321 (S ...

Fidus Investment Corp (NASDAQ:FDUS) Q1 2023 Earnings Conference Call May 5, 2023 9:00 AM ET Company Participants Shelby Sherard - CFO, Chief Compliance Officer & Secretary Edward Ross - Chairman & CEO Conference Call Participants Mickey Schleien - Ladenburg Thalmann & Co. Robert Dodd - Raymond James & Associates Bryce Rowe - B. Riley Securities Erik Zwick - Hovde Group Operator Good day, and welcome to the Fidus Investment Corporation First Quarter 2023 Earnings Conference Call. [Operator Instructions]. And ...