false0001932591December 31Q3New York10 dayshttp://fasb.org/us-gaap/2024#UnrealizedGainLossOnInvestmentshttp://fasb.org/us-gaap/2024#UnrealizedGainLossOnInvestmentshttp://fasb.org/us-gaap/2024#UnrealizedGainLossOnInvestments0001932591ck0001932591:BiotechnologyMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMemberus-gaap:WarrantMembersrt:MaximumMember2023-12-310001932591us-gaap:USTreasuryBillSecuritiesMember2023-12-310001932591us-gaap:WarrantMember2024-07-012024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:ApexServicePartnersLlcMember2024-09-300001932591ck0001932591:SubscriptionFacilityMember2023-12-310001932591ck0001932591:NexusIntermediateIiiLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591ck0001932591:ArcutisBiotherapeticsIncMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:MriSoftwareLlcMember2024-09-300001932591Total Investments & Cash Equivalents2023-12-3100019325912024-11-040001932591ck0001932591:DiversifiedConsumerServicesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591Warrants | Total Warrants2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | World Insurance Associates, LLC | Insurance | S+600 | 1.00% | 10.39% | 10/20/2023 | 4/3/20282024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | AAH Topco., LLC | Diversified Consumer Services | S+525 | 0.75% | 10.20% | 1/30/2024 | 12/22/20272024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:CvausaManagementLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% Peter C. Foy & Associates Insurance Services, LLC Industry Insurance Spread above Index S+650 Floor 0.75% Interest Rate 11.86% Acquisition Date 7/19/2023 Maturity Date 11/1/20282023-01-012023-12-310001932591us-gaap:WarrantMember2024-06-300001932591Bank Debt/Senior Secured Loans — 257.7% | Retina Midco, Inc. | Health Care Providers & Services | S+575 | 1.00% | 10.86% | 12/18/2023 | 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11/8/20302024-09-300001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMembersrt:WeightedAverageMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591ck0001932591:SlrCapitalManagementLlcMemberck0001932591:PostExchangeListingAdministrationExpensesMember2024-07-012024-09-300001932591ck0001932591:LiabilitiesInExcessOfOtherAssetsMember2024-09-300001932591ck0001932591:EntityInvestmentsMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Ardelyx, Inc. | Pharmaceuticals | S+425 | 4.70% | 9.45% | 3/1/2024 | 3/1/20272024-01-012024-09-3000019325912024-01-012024-09-300001932591ck0001932591:QuantcastCorporationMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMembersrt:MinimumMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591ck0001932591:HumanInterestInc.Memberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMembersrt:WeightedAverageMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:PlasticManagementLlcMember2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | Alkeme Intermediary Holdings, LLC | Insurance | S+650 | 1.00% | 11.96% | 9/20/2023 | 10/28/20262023-01-012023-12-3100019325912024-06-300001932591ck0001932591:WesternVeterinaryPartnersLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | Total Bank Debt/Senior Secured Loans2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:MriSoftwareLlcMember2023-12-310001932591ck0001932591:SlrCapitalManagementLlcMemberck0001932591:PostExchangeListingAdministrationExpensesMember2024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | MRI Software, LLC | Software | S+550 | 1.00% | 10.95% | 12/19/2023 | 2/10/20272023-01-012023-12-310001932591Cash Equivalents | US Treasury Bill | Government | 12/29/2023 | 2/27/20242023-01-012023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591Bank Debt/Senior Secured Loans 250.7% | Toptal, LLC | Commercial Services & Supplies | P+250 | 7.50% | 11.00% | 12/28/2023 | 12/28/20262023-01-012023-12-310001932591ck0001932591:WorldInsuranceAssociatesLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:CvausaManagementLlcMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | FE Advance, LLC | Diversified Financial Services | S+650 | 1.00% | 11.71% | 7/30/2024 | 7/30/20272024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | Higginbotham Insurance Agency, Inc. | Insurance | S+550 | 1.00% | 10.96% | 8/24/2023 | 11/25/20282023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | CVAUSA Management, LLC | Health Care Providers & Services | S+650 | 1.00% | 11.74% | 5/22/2023 | 5/22/20292023-01-012023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | UVP Management, LLC | Health Care Providers & Services | S+625 | 1.00% | 11.75% | 9/18/2023 | 9/15/20252023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | United Digestive MSO Parent, LLC | Health Care Providers & Services | S+675 | 1.00% | 12.25% | 3/30/2023 | 3/30/20292023-12-310001932591ck0001932591:BankDebtAndSeniorSecuredLoansMember2024-06-300001932591Total Investments2024-09-300001932591us-gaap:WarrantMember2024-09-3000019325912023-01-170001932591srt:WeightedAverageMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Outset Medical, Inc. | Health Care Providers & Services | S+515 | 2.75% | 10.32% | 1/2/2024 | 11/1/2027 2024-09-3000019325912023-07-012023-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | MRI Software, LLC | Software | S+550 | 1.00% | 10.95% | 12/19/2023 | 2/10/20272023-12-310001932591ck0001932591:SpvFacilityMember2023-12-120001932591ck0001932591:SpvFacilityMember2023-12-122023-12-120001932591us-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Human Interest, Inc. | Internet Software & Services | S+735 | 1.00% | 12.27% | 9/23/2024 | 7/1/20272024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 250.7%| Cerapedics, Inc. | Biotechnology | S+620 | 2.75% | 11.55% | 10/3/2023 | 1/1/20282023-01-012023-12-310001932591us-gaap:FairValueInputsLevel3Memberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591ck0001932591:SubscriptionFacilityMember2024-09-300001932591us-gaap:WarrantMember2023-01-170001932591Bank Debt/Senior Secured Loans — 257.7% | Nexus Intermediate III, LLC | Professional Services | S+550 | 0.75% | 10.69% | 8/16/2024 | 12/6/20272024-09-300001932591ck0001932591:CrewlineBuyerIncMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:ExactcareParentIncMember2024-09-300001932591ck0001932591:DiversifiedConsumerServicesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Cerapedics, Inc. | Biotechnology | S+620 | 2.75% | 11.31% | 10/3/2023 | 1/1/20282024-01-012024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:ToptalLlcMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:SprTherapeuticsIncMember2024-09-300001932591ck0001932591:AahTopcoLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | UVP Management, LLC | Health Care Providers & Services | S+625 | 1.00% | 11.75% | 9/18/2023 | 9/15/20252023-01-012023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | WCI-BXC Purchaser, LLC | Distributors | S+625 | 0.75% | 11.48% | 11/6/2023 | 11/6/20302024-01-012024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:ToptalLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Nexus Intermediate III, LLC | Professional Services | S+550 | 0.75% | 10.69% | 8/16/2024 | 12/6/20272024-01-012024-09-300001932591us-gaap:FairValueInputsLevel2Member2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | Alkeme Intermediary Holdings, LLC | Insurance | S+650 | 1.00% | 11.96% | 9/20/2023 | 10/28/20262023-12-310001932591ck0001932591:AahTopcoLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberck0001932591:SpvFacilityMember2023-12-122023-12-120001932591Cash Equivalents | US Treasury Bill | Government | 12/29/2023 | 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Debt/Senior Secured Loans — 257.7% | Southern Orthodontic Partners Management, LLC | Health Care Providers & Services | S+550 | 1.00% | 10.10% | 5/17/2024 | 7/27/20262024-09-300001932591ck0001932591:BankDebtAndSeniorSecuredLoansMember2023-01-170001932591Bank Debt/Senior Secured Loans — 257.7% | OIS Management Services, LLC | Health Care Providers & Services | S+475 | 0.75% | 9.35% | 12/29/2023 | 11/16/20282024-09-300001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-01-012024-09-300001932591ck0001932591:PackagedFoodsAndMeatsMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591ck0001932591:NetAssetsMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:FeAdvanceLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | West-NR Parent, Inc. | Insurance | S+625 | 1.00% | 11.70% | 8/1/2023 | 12/27/20272023-12-3100019325912024-07-012024-09-300001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591ck0001932591:WorldInsuranceAssociatesLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | Exactcare Parent, Inc. | Health Care Providers & Services | S+650 | 1.00% | 11.89% | 11/3/2023 | 11/5/20292023-01-012023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Ardelyx, Inc. | Pharmaceuticals | S+425 | 4.70% | 9.45% | 3/1/2024 | 3/1/20272024-09-300001932591ck0001932591:SubscriptionFacilityMember2024-01-012024-09-300001932591us-gaap:CashEquivalentsMemberus-gaap:USTreasurySecuritiesMember2023-12-310001932591Warrants | Vertos Medical Inc | Health Care Equipment & Supplies | 6/14/20232023-01-012023-12-310001932591Bank Debt/Senior Secured Loans — 250.7%| Cerapedics, Inc. | Biotechnology | S+620 | 2.75% | 11.55% | 10/3/2023 | 1/1/20282023-12-310001932591us-gaap:FairValueInputsLevel3Member2024-09-300001932591ck0001932591:ItServicesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% Peter C. Foy & Associates Insurance Services, LLC Industry Insurance Spread above Index S+650 Floor 0.75% Interest Rate 11.86% Acquisition Date 7/19/2023 Maturity Date 11/1/20282023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:VertosMedicalIncMember2024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:MedrinaLlcMember2024-09-300001932591us-gaap:FairValueInputsLevel1Memberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | UVP Management, LLC | Health Care Providers & Services | S+625 | 1.00% | 11.00% | 9/18/2023 | 9/15/20252024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | United Digestive MSO Parent, LLC | Health Care Providers & Services | S+675 | 1.00% | 12.25% | 3/30/2023 | 3/30/20292023-01-012023-12-310001932591ck0001932591:LiabilitiesInExcessOfOtherAssetsMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Ultimate Baked Goods Midco LLC | Packaged Foods & Meats | S+550 | 1.00% | 10.66% | 6/13/2024 | 8/13/20272024-01-012024-09-3000019325912023-01-012023-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Medrina, LLC | Health Care Providers & Services | S+600 | 1.00% | 11.55% | 10/20/2023 | 10/20/20292024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | Vertos Medical, Inc | Health Care Equipment & Supplies | S+515 | 4.75% | 10.50% | 6/14/2023 | 7/1/20282023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | OIS Management Services, LLC | Health Care Providers & Services | S+575 | 1.00% | 11.20% | 12/29/2023 | 11/16/20282023-12-310001932591us-gaap:CashEquivalentsMember2023-12-310001932591us-gaap:WarrantMember2024-01-012024-09-300001932591ck0001932591:HealthCareEquipmentAndSuppliesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Cerapedics, Inc. | Biotechnology | S+620 | 2.75% | 11.31% | 10/3/2023 | 1/1/20282024-09-300001932591ck0001932591:AmfLeveredTwoLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591ck0001932591:BankDebtAndSeniorSecuredLoansMemberck0001932591:InsuranceMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Western Veterinary Partners LLC | Diversified Consumer Services | S+500 | 1.00% | 9.60% | 1/19/2024 | 10/29/20272024-09-300001932591ck0001932591:RetinaMidcoIncMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591ck0001932591:HealthCareEquipmentAndSuppliesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591us-gaap:WarrantMember2023-12-310001932591ck0001932591:WestNrParentInc.Memberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591ck0001932591:ItServicesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | WCI-BXC Purchaser, LLC | Distributors | S+625 | 0.75% | 11.48% | 11/6/2023 | 11/6/20302024-09-300001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMembersrt:MaximumMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591ck0001932591:CerapedicsInc.Memberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:AlkemeIntermediaryHoldingsLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | MRI Software, LLC | Software | S+475 | 1.00% | 9.35% | 12/19/2023 | 2/10/20272024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Total Bank Debt/Senior Secured Loans2024-09-300001932591ck0001932591:BankDebtAndSeniorSecuredLoansMember2023-01-182023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Eyesouth Eye Care Holdco LLC | Health Care Providers & Services | S+550 | 1.00% | 10.80% | 4/1/2024 | 10/5/20292024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | Accession Risk Management Group, Inc. | Insurance | S+550 | 0.75% | 11.00% | 12/4/2023 | 11/1/20292023-01-012023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:UvpManagementLlcMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Exactcare Parent, Inc. | Health Care Providers & Services | S+550 | 1.00% | 10.73% | 11/3/2023 | 11/5/20292024-01-012024-09-300001932591ck0001932591:BankDebtAndSeniorSecuredLoansMember2024-01-012024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:FeAdvanceLlcMember2023-12-310001932591us-gaap:FairValueInputsLevel2Memberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591ck0001932591:DistributorsMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:SprTherapeuticsIncMember2023-12-310001932591ck0001932591:TermLoanTrancheMember2023-12-310001932591ck0001932591:EntityInvestmentsAndCashEquivalentsMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | World Insurance Associates, LLC | Insurance | S+600 | 1.00% | 10.39% | 10/20/2023 | 4/3/20282024-09-3000019325912024-09-300001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMembersrt:MaximumMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% Retina Midco, Inc. Industry Health Care Providers & Services Spread above Index S+575 Floor 1.00% Interest Rate 11.38% Acquisition Date 12/18/2023 Maturity Date 1/31/20262023-12-310001932591ck0001932591:WesternVeterinaryPartnersLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591ck0001932591:BankDebtAndSeniorSecuredLoansMember2024-07-012024-09-300001932591ck0001932591:PeterC.FoyAssociatesInsuranceServicesLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Quantcast Corporation | Commercial Services & Supplies | S+525 | 2.00% | 10.27% | 6/14/2024 | 6/14/20292024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | The Townsend Company, LLC | Commercial Services & Supplies | S+625 | 1.00% | 11.10% | 8/21/2023 | 8/15/20292024-01-012024-09-3000019325912023-01-182023-09-300001932591ck0001932591:HumanInterestInc.Memberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | CVAUSA Management, LLC | Health Care Providers & Services | S+650 | 1.00% | 11.74% | 5/22/2023 | 5/22/20292023-12-310001932591Bank Debt/Senior Secured Loan — 250.7% | Medrina, LLC | Health Care Providers & Services | S+625 | 1.00% | 11.67% | 10/20/2023 | 10/20/20292023-01-012023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:PlasticManagementLlcMember2024-09-300001932591ck0001932591:SubscriptionFacilityMember2023-03-2000019325912023-06-300001932591ck0001932591:CrewlineBuyerIncMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591ck0001932591:CerapedicsInc.Memberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591us-gaap:FairValueInputsLevel3Memberus-gaap:WarrantMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Crewline Buyer, Inc. | IT Services | S+675 | 1.00% | 11.35% | 11/8/2023 | 11/8/20302024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | Exactcare Parent, Inc. | Health Care Providers & Services | S+650 | 1.00% | 11.89% | 11/3/2023 | 11/5/20292023-12-310001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMembersrt:WeightedAverageMemberus-gaap:WarrantMember2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | World Insurance Associates, LLC | Insurance | S+600 | 1.00% | 11.35% | 10/20/2023 | 4/3/20282023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | World Insurance Associates, LLC | Insurance | S+600 | 1.00% | 11.35% | 10/20/2023 | 4/3/20282023-01-012023-12-310001932591ck0001932591:DistributorsMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:SouthernOrthodonticsPartnersManagementLlcMember2024-09-300001932591Warrants | Vertos Medical Inc | Health Care Equipment & Supplies | 6/14/20232023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Outset Medical, Inc. | Health Care Providers & Services | S+515 | 2.75% | 10.32% | 1/2/2024 | 11/1/2027 2024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Southern Orthodontic Partners Management, LLC | Health Care Providers & Services | S+550 | 1.00% | 10.10% | 5/17/2024 | 7/27/20262024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 250.7%| Apex Service Partners, LLC | Diversified Consumer Services | S+650 | 1.00% | 11.87% | 10/27/2023 | 10/24/20302023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Apex Service Partners, LLC | Diversified Consumer Services | S+650 | 1.00% | 11.36% | 10/27/2023 | 10/24/20302024-09-300001932591ck0001932591:BankDebtAndSeniorSecuredLoansMemberck0001932591:InsuranceMember2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | Higginbotham Insurance Agency, Inc. | Insurance | S+550 | 1.00% | 10.96% | 8/24/2023 | 11/25/20282023-01-012023-12-310001932591ck0001932591:BankDebtAndSeniorSecuredLoansMemberck0001932591:CommercialServicesSuppliesMember2024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:UvpManagementLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Eyesouth Eye Care Holdco LLC | Health Care Providers & Services | S+550 | 1.00% | 10.80% | 4/1/2024 | 10/5/20292024-01-012024-09-3000019325912023-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:UnitedDigestiveMsoParentLlcMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | The Townsend Company, LLC | Commercial Services & Supplies | S+625 | 1.00% | 11.10% | 8/21/2023 | 8/15/20292024-09-300001932591ck0001932591:NexusIntermediateIiiLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | WCI-BXC Purchaser, LLC | Distributors | S+625 | 1.00% | 11.64% | 11/6/2023 | 11/6/20302023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:AlkemeIntermediaryHoldingsLlcMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Peter C. Foy & Associates Insurance Services, LLC | Insurance | S+650 | 0.75% | 11.35% | 7/19/2023 | 11/1/20282024-01-012024-09-300001932591ck0001932591:RetinaMidcoIncMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591Bank Debt/Senior Secured Loans — 250.7%| Apex Service Partners, LLC | Diversified Consumer Services | S+650 | 1.00% | 11.87% | 10/27/2023 | 10/24/20302023-01-012023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:TheTownsendCompanyLlcMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Exactcare Parent, Inc. | Health Care Providers & Services | S+550 | 1.00% | 10.73% | 11/3/2023 | 11/5/20292024-09-300001932591us-gaap:FairValueInputsLevel1Member2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:ApexServicePartnersLlcMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:SouthernOrthodonticsPartnersManagementLlcMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Alkeme Intermediary Holdings, LLC | Insurance | S+575 | 1.00% | 10.35% | 9/20/2023 | 10/28/20262024-09-300001932591ck0001932591:SubscriptionFacilityMembersrt:MaximumMember2023-03-202023-03-200001932591Bank Debt/Senior Secured Loans — 257.7% | Quantcast Corporation | Commercial Services & Supplies | S+525 | 2.00% | 10.27% | 6/14/2024 | 6/14/20292024-09-300001932591us-gaap:FairValueInputsLevel2Member2024-09-3000019325912023-01-182023-12-310001932591ck0001932591:WestNrParentInc.Memberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | West-NR Parent, Inc. | Insurance | S+625 | 1.00% | 10.95% | 8/1/2023 | 12/27/20272024-01-012024-09-300001932591ck0001932591:SoftwareMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Accession Risk Management Group, Inc. | Insurance | S+475 | 0.75% | 9.35% | 12/4/2023 | 11/1/20292024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | Accession Risk Management Group, Inc. | Insurance | S+550 | 0.75% | 11.00% | 12/4/2023 | 11/1/20292023-12-310001932591ck0001932591:SubscriptionFacilityMembersrt:MinimumMember2023-03-202023-03-200001932591Bank Debt/Senior Secured Loans — 257.7% | ONS MSO, LLC | Health Care Providers & Services | S+575 | 1.00% | 10.60% | 4/26/2024 | 7/8/20262024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | CVAUSA Management, LLC | Health Care Providers & Services | S+650 | 1.00% | 11.12% | 5/22/2023 | 5/22/20292024-09-300001932591ck0001932591:ProfessionalServicesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | UVP Management, LLC | Health Care Providers & Services | S+625 | 1.00% | 11.00% | 9/18/2023 | 9/15/20252024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | CVAUSA Management, LLC | Health Care Providers & Services | S+650 | 1.00% | 11.12% | 5/22/2023 | 5/22/20292024-01-012024-09-300001932591ck0001932591:PharmaceuticalsMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591Bank Debt/Senior Secured Loans 250.7% | The Townsend Company, LLC | Commercial Services & Supplies | S+625 | 1.00% | 11.61% | 8/21/2023 | 8/15/20292023-01-012023-12-310001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMembersrt:MinimumMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Western Veterinary Partners LLC | Diversified Consumer Services | S+500 | 1.00% | 9.60% | 1/19/2024 | 10/29/20272024-01-012024-09-3000019325912023-12-310001932591ck0001932591:NetAssetsMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | OIS Management Services, LLC | Health Care Providers & Services | S+475 | 0.75% | 9.35% | 12/29/2023 | 11/16/20282024-01-012024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:OisManagementServicesLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | OIS Management Services, LLC | Health Care Providers & Services | S+575 | 1.00% | 11.20% | 12/29/2023 | 11/16/20282023-01-012023-12-310001932591ck0001932591:SlrCapitalManagementLlcMemberck0001932591:PostExchangeListingAdministrationExpensesMember2023-07-012023-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | United Digestive MSO Parent, LLC | Health Care Providers & Services | S+650 | 1.00% | 11.25% | 3/30/2023 | 3/30/20292024-09-300001932591ck0001932591:HealthCareProvidersAndServicesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:UnitedDigestiveMsoParentLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Accession Risk Management Group, Inc. | Insurance | S+475 | 0.75% | 9.35% | 12/4/2023 | 11/1/20292024-01-012024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Peter C. Foy & Associates Insurance Services, LLC | Insurance | S+650 | 0.75% | 11.35% | 7/19/2023 | 11/1/20282024-09-300001932591ck0001932591:BankDebtAndSeniorSecuredLoansMemberck0001932591:CommercialServicesSuppliesMember2023-12-310001932591us-gaap:FairValueInputsLevel1Memberus-gaap:WarrantMember2023-12-310001932591ck0001932591:ArcutisBiotherapeticsIncMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | West-NR Parent, Inc. | Insurance | S+625 | 1.00% | 10.95% | 8/1/2023 | 12/27/20272024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Legacy Service Partners, LLC | Diversified Consumer Services | S+575 | 1.00% | 10.50% | 3/18/2024 | 1/9/20292024-01-012024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:WciBxcPurchaserLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Medrina, LLC | Health Care Providers & Services | S+600 | 1.00% | 11.55% | 10/20/2023 | 10/20/20292024-01-012024-09-300001932591us-gaap:FairValueInputsLevel3Member2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Human Interest, Inc. | Internet Software & Services | S+735 | 1.00% | 12.27% | 9/23/2024 | 7/1/20272024-09-300001932591ck0001932591:OutsetMedicalInc.Memberck0001932591:UnfundedDebtAndEquityCommitmentsMember2023-12-310001932591ck0001932591:PeterC.FoyAssociatesInsuranceServicesLlcMemberck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591ck0001932591:HealthCareProvidersAndServicesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591srt:MaximumMember2024-01-012024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:TheTownsendCompanyLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | United Digestive MSO Parent, LLC | Health Care Providers & Services | S+650 | 1.00% | 11.25% | 3/30/2023 | 3/30/20292024-01-012024-09-300001932591ck0001932591:SlrCapitalManagementLlcMemberck0001932591:PostExchangeListingAdministrationExpensesMember2023-01-182023-09-300001932591Bank Debt/Senior Secured Loans 250.7% | The Townsend Company, LLC | Commercial Services & Supplies | S+625 | 1.00% | 11.61% | 8/21/2023 | 8/15/20292023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | SPR Therapeutics, Inc. | Health Care Technology | S+515 | 4.00% | 10.32% | 1/30/2024 | 2/1/20292024-01-012024-09-300001932591srt:WeightedAverageMember2023-09-300001932591us-gaap:FairValueInputsLevel2Memberck0001932591:BankDebtAndSeniorSecuredLoansMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:LegacyServicePartnersLlcMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Apex Service Partners, LLC | Diversified Consumer Services | S+650 | 1.00% | 11.36% | 10/27/2023 | 10/24/20302024-01-012024-09-3000019325912023-02-012023-12-310001932591ck0001932591:RevolverTrancheMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Legacy Service Partners, LLC | Diversified Consumer Services | S+575 | 1.00% | 10.50% | 3/18/2024 | 1/9/20292024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | West-NR Parent, Inc. | Insurance | S+625 | 1.00% | 11.70% | 8/1/2023 | 12/27/20272023-01-012023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | FE Advance, LLC | Diversified Financial Services | S+650 | 1.00% | 11.71% | 7/30/2024 | 7/30/20272024-01-012024-09-300001932591ck0001932591:EntityInvestmentsMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | AAH Topco., LLC | Diversified Consumer Services | S+525 | 0.75% | 10.20% | 1/30/2024 | 12/22/20272024-01-012024-09-300001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMemberus-gaap:WarrantMember2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | Crewline Buyer, Inc. | IT Services | S+675 | 1.00% | 12.10% | 11/8/2023 | 11/8/20302023-01-012023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | Crewline Buyer, Inc. | IT Services | S+675 | 1.00% | 12.10% | 11/8/2023 | 11/8/20302023-12-310001932591ck0001932591:DiversifiedFinancialServicesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591ck0001932591:InternetSoftwareAndServicesMemberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Ultimate Baked Goods Midco LLC | Packaged Foods & Meats | S+550 | 1.00% | 10.66% | 6/13/2024 | 8/13/20272024-09-300001932591Bank Debt/Senior Secured Loans — 257.7% | Alkeme Intermediary Holdings, LLC | Insurance | S+575 | 1.00% | 10.35% | 9/20/2023 | 10/28/20262024-01-012024-09-300001932591us-gaap:FairValueInputsLevel1Member2024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:LegacyServicePartnersLlcMember2023-12-310001932591us-gaap:FairValueInputsLevel3Memberck0001932591:MarketYieldMemberus-gaap:WarrantMember2023-01-012023-12-310001932591Bank Debt/Senior Secured Loans 250.7% | Toptal, LLC | Commercial Services & Supplies | P+250 | 7.50% | 11.00% | 12/28/2023 | 12/28/20262023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% | WCI-BXC Purchaser, LLC | Distributors | S+625 | 1.00% | 11.64% | 11/6/2023 | 11/6/20302023-01-012023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | SPR Therapeutics, Inc. | Health Care Technology | S+515 | 4.00% | 10.32% | 1/30/2024 | 2/1/20292024-09-300001932591Bank Debt/Senior Secured Loans — 250.7% | Vertos Medical, Inc | Health Care Equipment & Supplies | S+515 | 4.75% | 10.50% | 6/14/2023 | 7/1/20282023-01-012023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | ONS MSO, LLC | Health Care Providers & Services | S+575 | 1.00% | 10.60% | 4/26/2024 | 7/8/20262024-09-300001932591us-gaap:FairValueInputsLevel2Memberus-gaap:WarrantMember2023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | Retina Midco, Inc. | Health Care Providers & Services | S+575 | 1.00% | 10.86% | 12/18/2023 | 1/31/20262024-01-012024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:MedrinaLlcMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:OisManagementServicesLlcMember2023-12-310001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:ExactcareParentIncMember2023-12-310001932591Bank Debt/Senior Secured Loans — 250.7% Retina Midco, Inc. Industry Health Care Providers & Services Spread above Index S+575 Floor 1.00% Interest Rate 11.38% Acquisition Date 12/18/2023 Maturity Date 1/31/20262023-01-012023-12-310001932591ck0001932591:BankDebtAndSeniorSecuredLoansMemberck0001932591:HealthCareTechnologyMember2024-09-300001932591Bank Debt/Senior Secured Loan — 250.7% | Medrina, LLC | Health Care Providers & Services | S+625 | 1.00% | 11.67% | 10/20/2023 | 10/20/20292023-12-310001932591Bank Debt/Senior Secured Loans — 257.7% | MRI Software, LLC | Software | S+475 | 1.00% | 9.35% | 12/19/2023 | 2/10/20272024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMember2024-09-300001932591Total Investments2023-12-310001932591us-gaap:FairValueInputsLevel1Memberck0001932591:BankDebtAndSeniorSecuredLoansMember2024-09-300001932591ck0001932591:UnfundedDebtAndEquityCommitmentsMemberck0001932591:ArdelyxInc.Member2023-12-31xbrli:pureiso4217:USDxbrli:sharesxbrli:sharesck0001932591:Productiso4217:USD

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 Quarter Ended September 30, 2024

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

Commission File Number: 814-01616

SLR Private Credit BDC II LLC

(Exact name of registrant as specified in its charter)


Delaware	88-1890628
(State of Incorporation)	(I.R.S. Employer Identification No.)

500 Park Avenue New York, N.Y.	10022
(Address of principal executive offices)	(Zip Code)

(212) 993-1670

(Registrant’s telephone number, including area code)

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

    Title of Each Class
 
    Trading
Symbol
 
    Name of Each Exchange
on Which Registered

    N/A

    N/A

    N/A

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 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☒

As of September 30, 2024, there was no established public market for the registrant’s units. The issuer had 902,038 units outstanding as of November 4, 2024.

Table of Contents

SLR PRIVATE CREDIT BDC II LLC

FORM 10-Q FOR THE PERIOD ENDED SEPTEMBER 30, 2024

TABLE OF CONTENTS


	Index	Page No.
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of September 30, 2024 (unaudited) and December 31, 2023	3
	Consolidated Statements of Operations for the three and nine months ended September 30, 2024 (unaudited), the three months ended September 30, 2023 (unaudited) and the period January 18, 2023* to September 30, 2023 (unaudited)	4
	Consolidated Statements of Changes in Unitholders’ Capital for the three and nine months ended September 30, 2024 (unaudited), the three months ended September 30, 2023 (unaudited) and the period January 18, 2023* to September 30, 2023 (unaudited)	5
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 (unaudited) and the period January 18, 2023* to September 30, 2023 (unaudited)	6
	Consolidated Schedule of Investments as of September 30, 2024 (unaudited)	7
	Consolidated Schedule of Investments as of December 31, 2023	10
	Notes to Consolidated Financial Statements (unaudited)	12
	Report of Independent Registered Public Accounting Firm	27
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	40
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	42
SIGNATURES		44

* Commencement of operations

Table of Contents

PART I. FINANCIAL INFORMATION

In this Quarterly Report, “Company”, “we”, “us”, and “our” refer to SLR Private Credit BDC II LLC unless the context states otherwise.

Item 1. Financial Statements

SLR PRIVATE CREDIT BDC II LLC

Consolidated Statements of Assets and Liabilities

(in thousands, except unit amounts)


	September 30, 2024 (unaudited)		December 31, 2023
Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost: $37,516 and $21,560, respectively)	$	38,123	$	21,654
Cash		1,205		323
Cash equivalents (cost: $0 and $4,960, respectively)		—		4,960
Interest receivable		334		138
Receivable for investments sold		20		—
Prepaid expenses		3		16
Total assets	$	39,685	$	27,091
Liabilities
Revolving credit facility due March 2025 (the “Subscription Facility”) ($13,100 and $11,400 face amounts, respectively, reported net of unamortized debt issuance costs of $131 and $320, respectively. See note 5)	$	12,969	$	11,080
Revolving credit facility due December 2028 (the “SPV Facility”) ($11,100 and $2,000 face amounts, respectively, reported net of unamortized debt issuance costs of $402 and $346, respectively. See note 5)		10,698		1,654
Payable for cash equivalents purchased		—		4,960
Management fee payable (see note 3)		384		138
Administration fee payable (see note 3)		7		3
Interest payable (see note 5)		311		85
Other liabilities and accrued expenses		521		536
Total liabilities	$	24,890	$	18,456
Commitments and contingencies (see note 6)
Unitholders’ Capital
Common Unitholders’ capital (902,038 and 551,497 units, respectively, issued and outstanding)		14,631		9,131
Accumulated distributable net earnings (loss)		164		(496	)
Total unitholders’ capital	$	14,795	$	8,635
Total liabilities and unitholders’ capital	$	39,685	$	27,091
Net asset value per unit	$	16.40	$	15.66

See notes to consolidated financial statements.

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SLR PRIVATE CREDIT BDC II LLC

Consolidated Statements of Operations (unaudited)

(in thousands, except unit amounts)


	Three months ended
	September 30, 2024		September 30, 2023			Nine months ended September 30, 2024		For the period January 18, 2023* to September 30, 2023
Investment Income:
Interest income from non-controlled/non-affiliated investments	$	1,160	$	131		$	2,997	$	174
Other income from non-controlled/non-affiliated investments		64		—			155		—
Total investment income		1,224		131			3,152		174
Expenses:
Management fees (see note 3)	$	107	$	47		$	308	$	58
Administration fees (see note 3)		7		1			18		1
Interest and other credit facility expenses (see note 5)		618		187			1,701		341
Organizational expenses		—		—			—		131
Other general and administrative expenses		155		215			475		643
Total expenses		887		450			2,502		1,174
Net investment income (loss)	$	337	$	(319	)	$	650	$	(1,000	)
Realized and unrealized gain (loss) on investments and cash equivalents:
Net realized gain (loss) on non-controlled/non-affiliated investments and cash equivalents	$	4	$	—		$	3	$	—
Net change in unrealized gain (loss) on non-controlled/non-affiliated investments		292		17			513		16
Net realized and unrealized gain (loss) on non-controlled/non-affiliated investments and cash equivalents		296		17			516		16
Net Increase (Decrease) in Unitholders’ Capital Resulting From Operations	$	633	$	(302	)	$	1,166	$	(984	)
Net Income (Loss) Per Unit	$	0.70	$	(2.42	)	$	1.58	$	(8.04	)

* Commencement of operations

See notes to consolidated financial statements.

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SLR PRIVATE CREDIT BDC II LLC

Consolidated Statements of Changes in Unitholders’ Capital (unaudited)

(in thousands, except unit amounts)


	Three months ended
	September 30, 2024			September 30, 2023			Nine months ended September 30, 2024			For the period January 18, 2023* to September 30, 2023
Increase (decrease) in unitholders’ capital resulting from operations:
Net investment income (loss)	$	337		$	(319	)	$	650		$	(1,000	)
Net realized gain (loss)		4			—			3			—
Net change in unrealized gain (loss)		292			17			513			16
Net increase (decrease) in unitholders’ capital resulting from operations		633			(302	)		1,166			(984	)
Distributions to unitholders:
From distributable earnings		(213	)		—			(506	)		—
Net distributions to unitholders		(213	)		—			(506	)		—
Increase (decrease) in unitholders’ capital resulting from capital activity:
Contributions		—			3,500			5,500			6,501
Less offering costs		—			(2	)		—			(76	)
Cancellation of initial units		—			—			—			(1	)
Net increase in unitholders’ capital resulting from capital activity		—			3,498			5,500			6,424
Total increase in unitholders’ capital		420			3,196			6,160			5,440
Unitholders’ capital, beginning of period		14,375			2,244			8,635			—
Unitholders’ capital, end of period	$	14,795		$	5,440		$	14,795		$	5,440
Capital unit activity (see note 7):
Units issued		—			217,661			350,541			337,701
Units canceled		—			—			—			(40	)
Net increase from capital unit activity		—			217,661			350,541			337,661

* Commencement of operations

See notes to consolidated financial statements.

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SLR PRIVATE CREDIT BDC II LLC

Consolidated Statements of Cash Flows (unaudited)

(in thousands)


	Nine months ended September 30, 2024			For the period January 18, 2023* to September 30, 2023
Cash Flows from Operating Activities:
Net increase (decrease) in unitholders’ capital resulting from operations	$	1,166		$	(984	)
Adjustments to reconcile net increase (decrease) in unitholders’ capital resulting from operations to net cash provied by (used in) operating activities:
Net realized (gain) loss on investments and cash equivalents		(3	)		—
Net change in unrealized gain on investments		(513	)		(16	)
Deferred financing costs amortization		298			157
Net accretion of discount on investments		(126	)		(5	)
(Increase) decrease in operating assets:
Purchase of investments		(22,701	)		(7,370	)
Proceeds from disposition of investments		6,897			13
Capitalization of payment-in-kind income		(23	)		—
Interest receivable		(196	)		(30	)
Receivable for investments sold		(20	)		—
Prepaid expenses		13			(40	)
Increase (decrease) in operating liabilities:
Payable for cash equivalents purchased		(4,960	)		2,978
Management fee payable		246			58
Administration fee payable		4			1
Interest payable		226			50
Other liabilities and accrued expenses		(15	)		204
Net Cash Used in Operating Activities		(19,707	)		(4,984	)
Cash Flows from Financing Activities:
Contributions from unitholders		5,500			6,501
Cash distributions paid		(506	)		—
Offering costs		—			(76	)
Cancellation of units		—			(1	)
Proceeds from borrowings		23,535			6,907
Repayments of borrowings		(12,900	)		(1,750	)
Net Cash Provided by Financing Activities		15,629			11,581
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(4,078	)		6,597
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		5,283			—
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	1,205		$	6,597
Supplemental disclosure of cash flow information:
Cash paid for interest	$	1,177		$	291

* Commencement of operations

See notes to consolidated financial statements.

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SLR PRIVATE CREDIT BDC II LLC

Consolidated Schedule of Investments (unaudited)

September 30, 2024

(in thousands, except share/unit amounts)


Description	Industry	Spread above Index (2)	Floor			Interest Rate (1)			Acquisition Date	Maturity Date	Par Amount		Cost		Fair Value
Bank Debt/Senior Secured Loans — 257.7%
AAH Topco., LLC(4)	Diversified Consumer Services	S+525		0.75	%		10.20	%	1/30/2024	12/22/2027	$	763	$	749	$	763
Accession Risk Management Group, Inc.(4)	Insurance	S+475		0.75	%		9.35	%	12/4/2023	11/1/2029		1,591		1,586		1,591
Alkeme Intermediary Holdings, LLC(4)	Insurance	S+575		1.00	%		10.35	%	9/20/2023	10/28/2026		2,170		2,123		2,127
Apex Service Partners, LLC(4)	Diversified Consumer Services	S+650		1.00	%		11.36	%	10/27/2023	10/24/2030		1,380		1,348		1,393
Ardelyx, Inc.(4)(5)	Pharmaceuticals	S+425		4.70	%		9.45	%	3/1/2024	3/1/2027		750		755		758
Cerapedics, Inc.(4)	Biotechnology	S+620		2.75	%		11.31	%	10/3/2023	1/1/2028		1,276		1,282		1,283
Crewline Buyer, Inc.(4)	IT Services	S+675		1.00	%		11.35	%	11/8/2023	11/8/2030		1,171		1,145		1,171
CVAUSA Management, LLC(4)	Health Care Providers & Services	S+650		1.00	%		11.12	%	5/22/2023	5/22/2029		1,175		1,145		1,175
Exactcare Parent, Inc.(4)	Health Care Providers & Services	S+550		1.00	%		10.73	%	11/3/2023	11/5/2029		740		722		740
Eyesouth Eye Care Holdco LLC(4)	Health Care Providers & Services	S+550		1.00	%		10.80	%	4/1/2024	10/5/2029		611		600		611
FE Advance, LLC(4)	Diversified Financial Services	S+650		1.00	%		11.71	%	7/30/2024	7/30/2027		1,168		1,146		1,145
Human Interest, Inc.	Internet Software & Services	S+735		1.00	%		12.27	%	9/23/2024	7/1/2027		1,032		1,001		1,032
Legacy Service Partners, LLC	Diversified Consumer Services	S+575		1.00	%		10.50	%	3/18/2024	1/9/2029		646		631		646
Medrina, LLC(4)	Health Care Providers & Services	S+600		1.00	%		11.55	%	10/20/2023	10/20/2029		551		539		551
MRI Software, LLC(4)	Software	S+475		1.00	%		9.35	%	12/19/2023	2/10/2027		1,579		1,577		1,579
Nexus Intermediate III, LLC	Professional Services	S+550		0.75	%		10.69	%	8/16/2024	12/6/2027		210		207		207
OIS Management Services, LLC(4)	Health Care Providers & Services	S+475		0.75	%		9.35	%	12/29/2023	11/16/2028		2,081		2,050		2,061
ONS MSO, LLC(4)	Health Care Providers & Services	S+575		1.00	%		10.60	%	4/26/2024	7/8/2026		1,506		1,493		1,506
Outset Medical, Inc.(4)	Health Care Equipment & Supplies	S+515		2.75	%		10.32	%	1/2/2024	11/1/2027		3,113		3,122		3,292
Peter C. Foy & Associates Insurance Services, LLC(4)	Insurance	S+650		0.75	%		11.35	%	7/19/2023	11/1/2028		374		368		374
Quantcast Corporation(4)	Commercial Services & Supplies	S+525		2.00	%		10.27	%	6/14/2024	6/14/2029		590		583		590
Retina Midco, Inc.(4)	Health Care Providers & Services	S+575		1.00	%		10.86	%	12/18/2023	1/31/2026		3,059		3,016		3,059
Southern Orthodontic Partners Management, LLC(4)	Health Care Providers & Services	S+550		1.00	%		10.10	%	5/17/2024	7/27/2026		317		314		317
SPR Therapeutics, Inc.(4)	Health Care Technology	S+515		4.00	%		10.32	%	1/30/2024	2/1/2029		399		399		411
The Townsend Company, LLC(4)	Commercial Services & Supplies	S+625		1.00	%		11.10	%	8/21/2023	8/15/2029		792		775		792
Ultimate Baked Goods Midco LLC(4)	Packaged Foods & Meats	S+550		1.00	%		10.66	%	6/13/2024	8/13/2027		1,945		1,936		1,945
United Digestive MSO Parent, LLC(4)	Health Care Providers & Services	S+650		1.00	%		11.25	%	3/30/2023	3/30/2029		700		683		700
UVP Management, LLC(4)	Health Care Providers & Services	S+625		1.00	%		11.00	%	9/18/2023	9/15/2025		1,122		1,107		1,122
WCI-BXC Purchaser, LLC(4)	Distributors	S+625		0.75	%		11.48	%	11/6/2023	11/6/2030		664		649		664
Western Veterinary Partners LLC(4)	Diversified Consumer Services	S+500		1.00	%		9.60	%	1/19/2024	10/29/2027		2,148		2,119		2,148
West-NR Parent, Inc.(4)	Insurance	S+625		1.00	%		10.95	%	8/1/2023	12/27/2027		917		903		917
World Insurance Associates, LLC(4)	Insurance	S+600		1.00	%		10.39	%	10/20/2023	4/3/2028		1,453		1,443		1,453
Total Bank Debt/Senior Secured Loans													$	37,516	$	38,123
Total Investments(3)— 257.7%													$	37,516	$	38,123
Liabilities in Excess of Other Assets — (157.7%)																(23,328	)
Net Assets — 100.0%															$	14,795

(1)

Floating rate debt investments typically bear interest at a rate determined by reference to either the Secured Overnight Financing Rate (“SOFR”) or the prime index rate (“PRIME” or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment, the Company has provided the current interest rate in effect as of September 30, 2024.

See notes to consolidated financial statements.

Table of Contents

SLR PRIVATE CREDIT BDC II LLC

Consolidated Schedule of Investments (unaudited) (continued)

September 30, 2024

(in thousands, except share/unit amounts)

(2)

Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR or PRIME rate. These instruments are often subject to a SOFR or PRIME rate floor.

(3)

Aggregate net unrealized appreciation for U.S. federal income tax purposes is $140; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $608 and $468, respectively, based on a tax cost of $37,983. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated.

(4)

Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SLR Private Credit BDC II SPV LLC (the “SPV”). Such investments are pledged as collateral under the SPV Facility (see Note 5 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company.

(5)

Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of September 30, 2024, on a fair value basis, non-qualifying assets in our portfolio represented 1.9% of the total assets of the Company.

See notes to consolidated financial statements.

Table of Contents

SLR PRIVATE CREDIT BDC II LLC

Consolidated Schedule of Investments (unaudited) (continued)

September 30, 2024

(in thousands, except share/unit amounts)


Industry Classification	Percentage of Total Investments (at fair value) as of September 30, 2024
Health Care Providers & Services		31.1	%
Insurance		17.0	%
Diversified Consumer Services		13.0	%
Health Care Equipment & Supplies		8.6	%
Packaged Foods & Meats		5.1	%
Software		4.1	%
Commercial Services & Supplies		3.6	%
Biotechnology		3.4	%
IT Services		3.1	%
Diversified Financial Services		3.0	%
Internet Software & Services		2.7	%
Pharmaceuticals		2.0	%
Distributors		1.7	%
Health Care Technology		1.1	%
Professional Services		0.5	%
Total Investments		100.0	%

See notes to consolidated financial statements.

Table of Contents

SLR Private Credit BDC II LLC

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except share/unit amounts)


Description	Industry	Spread above Index (2)	Floor			Interest Rate (1)			Acquisition Date	Maturity Date	Par Amount		Cost		Fair Value
Bank Debt/Senior Secured Loans — 250.7%
Accession Risk Management Group, Inc.	Insurance	S+550		0.75	%		11.00	%	12/4/2023	11/1/2029	$	1,603	$	1,597	$	1,597
Alkeme Intermediary Holdings, LLC(4)	Insurance	S+650		1.00	%		11.96	%	9/20/2023	10/28/2026		667		649		667
Apex Service Partners, LLC	Diversified Consumer Services	S+650(5)		1.00	%		11.87	%	10/27/2023	10/24/2030		1,130		1,102		1,102
Cerapedics, Inc.(4)	Biotechnology	S+620		2.75	%		11.55	%	10/3/2023	1/1/2028		851		852		851
Crewline Buyer, Inc.	IT Services	S+675		1.00	%		12.10	%	11/8/2023	11/8/2030		1,171		1,142		1,142
CVAUSA Management, LLC	Health Care Providers & Services	S+650		1.00	%		11.74	%	5/22/2023	5/22/2029		1,184		1,150		1,184
Exactcare Parent, Inc.	Health Care Providers & Services	S+650		1.00	%		11.89	%	11/3/2023	11/5/2029		744		724		723
Higginbotham Insurance Agency, Inc.	Insurance	S+550		1.00	%		10.96	%	8/24/2023	11/25/2028		1,740		1,740		1,740
Medrina, LLC	Health Care Providers & Services	S+625		1.00	%		11.67	%	10/20/2023	10/20/2029		555		542		541
MRI Software, LLC(4)	Software	S+550		1.00	%		10.95	%	12/19/2023	2/10/2027		1,591		1,589		1,589
OIS Management Services, LLC(4)	Health Care Providers & Services	S+575		0.75	%		11.20	%	12/29/2023	11/16/2028		697		691		683
Peter C. Foy & Associates Insurance Services, LLC	Insurance	S+650		0.75	%		11.86	%	7/19/2023	11/1/2028		377		370		370
Retina Midco, Inc.(4)	Health Care Providers & Services	S+575		1.00	%		11.38	%	12/18/2023	1/31/2026		2,308		2,262		2,261
The Townsend Company, LLC(4)	Commercial Services & Supplies	S+625		1.00	%		11.61	%	8/21/2023	8/15/2029		805		786		805
Toptal, LLC	Commercial Services & Supplies	P+250		7.50	%		11.00	%	12/28/2023	12/28/2026		1,562		1,562		1,562
United Digestive MSO Parent, LLC	Health Care Providers & Services	S+675		1.00	%		12.25	%	3/30/2023	3/30/2029		687		669		687
UVP Management, LLC	Health Care Providers & Services	S+625		1.00	%		11.75	%	9/18/2023	9/15/2025		1,023		1,001		998
Vertos Medical, Inc.(4)	Health Care Equipment & Supplies	S+515		4.75	%		10.50	%	6/14/2023	7/1/2028		397		394		397
WCI-BXC Purchaser, LLC	Distributors	S+625		1.00	%		11.64	%	11/6/2023	11/6/2030		669		653		653
West-NR Parent, Inc.	Insurance	S+625		1.00	%		11.70	%	8/1/2023	12/27/2027		916		899		916
World Insurance Associates, LLC	Insurance	S+600		1.00	%		11.35	%	10/20/2023	4/3/2028		1,189		1,183		1,183
Total Bank Debt/Senior Secured Loans													$	21,557	$	21,651
											Warrants
Warrants — 0.1%
Vertos Medical, Inc.*	Health Care Equipment & Supplies								6/14/2023			9,646	$	3	$	3
Total Warrants													$	3	$	3
Total Investments(3)— 250.8%													$	21,560	$	21,654
Cash Equivalents — 57.4%
U.S. Treasury Bill (5.33% yield)	Government								12/29/2023	2/27/2024	$	5,000	$	4,960	$	4,960
Total Investments & Cash Equivalents — 308.2%													$	26,520	$	26,614
Liabilities in Excess of Other Assets — (208.2%)																(17,979	)
Net Assets — 100.0%															$	8,635

(1)

Floating rate debt investments typically bear interest at a rate determined by reference to either the Secured Overnight Financing Rate or the prime index rate, and which typically reset monthly, quarterly or semi-annually. For each debt investment the Company has provided the current interest rate in effect as of December 31, 2023.

(2)

Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR or PRIME rate. These instruments are often subject to a SOFR or PRIME rate floor.

(3)

Aggregate net unrealized depreciation for U.S. federal income tax purposes is $374; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $110 and $484, respectively, based on a tax cost of $22,028. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act. These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated.

See notes to consolidated financial statements.

Table of Contents

SLR Private Credit BDC II LLC

Consolidated Schedule of Investments (continued)

December 31, 2023

(in thousands)

(4)

Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SLR Private Credit BDC II SPV LLC. Such investments are pledged as collateral under the SPV Facility (see Note 5 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company.

(5)

S+650 spread on revolver tranche, S+500 plus 2.00% PIK on term loan tranche.

* Non-income producing security.


Industry Classification	Percentage of Total Investments (at fair value) as of December 31, 2023
Health Care Providers & Services		32.7	%
Insurance		29.9	%
Commercial Services & Supplies		10.9	%
Software		7.3	%
IT Services		5.3	%
Diversified Consumer Services		5.1	%
Biotechnology		3.9	%
Distributors		3.0	%
Health Care Equipment & Supplies		1.9	%
Total Investments		100.0	%

See notes to consolidated financial statements.

Table of Contents

SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited)

September 30, 2024

(in thousands, except unit amounts)

Note 1. Organization

SLR Private Credit BDC II LLC (the “Company”, “we”, “us” or “our”) was formed as a limited liability company under the laws of the State of Delaware on April 18, 2022 as an externally managed, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Furthermore, as the Company is an investment company, it applies the guidance in the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 946. In addition, for U.S. federal income tax purposes, the Company has elected to be treated, and intends to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a BDC and a RIC, the Company is required to comply with certain regulatory requirements. The Company was formed primarily to provide investors with attractive long-term returns through investments made pursuant to the investment strategy of the Company described below. SLR Capital Partners, LLC (the “Adviser” or “SLR”) serves as the Company’s investment adviser pursuant to an investment management agreement with the Company (as amended, restated or otherwise modified from time to time, the “Investment Management Agreement”). The fiscal year end of the Company is December 31.

In connection with the Company’s formation, the Company issued and sold 40 of the Company’s units (“Units”) to the Adviser (the “Initial Unitholder”), which were acquired for an initial capital contribution of $1 on January 18, 2023 in reliance upon the available exemptions from registration requirements of Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). As of September 30, 2024, the Company has closed on $66,780 in capital commitments. The Company’s initial drawdown occurred on March 31, 2023 with the sale and issuance of Units at an aggregate purchase price of $3,000 or $25.00 per Unit. Prior to the issuance of Units on March 31, 2023, the Initial Unitholder’s initial seed capital was withdrawn from the Company and its Units were canceled. As of September 30, 2024, $15,400 of capital commitments were drawn and $51,380 were unfunded.

To seek to achieve its investment objective, the Company expects to invest in directly originated cash flow loans issued to sponsor-owned upper-middle-market companies and in niche specialty finance loans with attractive risk-return characteristics. Borrowers in the Company’s cash flow strategy are expected to typically generate $25,000 to $250,000 or more of EBITDA (defined below), operate in non-cyclical industries, demonstrate defensive business models, and be owned by leading private equity firms. The Company’s specialty finance investments will encompass asset-based lending to asset-rich companies in a variety of industries. The Company’s investments in portfolio companies are referred to herein as “Portfolio Investments”.

The offering period of the Company is currently expected to be for a period of approximately eighteen months from August 9, 2023 (the “Offering Period”). The Company is expected to conduct its offering pursuant to which investors will make equity capital commitments (“Commitments”) pursuant to a subscription agreement entered into with the Company where the investor will agree to purchase an interest in the Company for an aggregate purchase price equal to its Commitment. Each investor will purchase Units each time the Company delivers a drawdown notice, typically ten business days prior to a required funding date. The offering and sale of the Units is expected to be exempt from registration pursuant to Regulation D and Regulation S promulgated under the Securities Act, for offers and sales of securities that do not involve a public offering and for offers and sales of securities outside of the United States, respectively.

The term of the Company is expected to be seven years from the end of the Offering Period (unless terminated earlier or the Company effectuates an Exchange Listing (defined below) as set forth in the Limited Liability Company Agreement of the Company (as amended, restated or otherwise modified from time to time, the “LLC Agreement”)), but may be extended by the Company’s board of directors (the “Board”) for up to two consecutive one-year periods upon approval of the Company’s independent directors and the approval of unitholders of the Company (“Unitholders”), which approval will be obtained through a non-1940 Act vote as described in Item 11 of the Company’s Form 10. The Company may be dissolved and its affairs wound up prior to the end of the term under the circumstances set forth in the LLC Agreement.

At any time prior to the end of the term, subject to any requirements of the 1940 Act and applicable law, the Board may, without the approval of the Unitholders, cause the Company (or any successor entity to the Company) to be merged with and into an affiliated entity that is regulated under the 1940 Act, whose securities are listed for trading on a national securities exchange, and that will have a total net asset value of at least $1,000,000 immediately after the closing of such merger, subject to any limitations under the 1940 Act (an “Exchange Listing”). In connection with, and prior to, any such Exchange Listing, subject to any requirements of the 1940 Act and applicable law, the Board may, without the approval of Unitholders, cause the Company to complete (i) the sale, exchange or disposition of all or a portion of the assets of the Company, or (ii) a conversion of the Company into a corporation incorporated in a

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SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

state determined by the Board, either through a conversion in accordance with applicable law, a merger with or into an existing corporation or otherwise in which all Units will be converted into or exchanged for shares of common stock of the resulting corporation. If the Company is unable to effectuate an Exchange Listing prior to the end of the term, the Company will use commercially reasonable efforts to wind down or liquidate pursuant to the procedures set forth in the LLC Agreement.

Note 2. Summary of Significant Accounting Policies

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company. The consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of the operations and financial condition for the periods presented. All significant intercompany balances and transactions have been eliminated.

Interim consolidated financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, they may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reported period. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending on December 31, 2024.

In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for the fair presentation of consolidated financial statements have been included.

The significant accounting policies consistently followed by the Company are:

(a)

Investment transactions are accounted for on the trade date;

(b)

In accordance with GAAP and the 1940 Act, the Company’s assets will generally be valued as follows:

(i)

securities or other instruments (other than as referred to in clauses (ii) and (iii) below) for which market quotes are readily available and deemed to represent fair value under GAAP will be valued based on quotes obtained from a quotation reporting system, market makers or pricing services (when deemed to represent fair value under GAAP);

(ii)

exchange-traded options, futures and options on futures will be valued at the settlement price determined by the exchange or through the use of a model such as Black-Scholes;

(iii)

short-term investments with maturities of sixty (60) days or less generally will be valued at amortized cost; and

(iv)

securities, loans or other instruments for which market quotes are not readily available or reliable under GAAP will be valued as described below:

the quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of SLR responsible for the Portfolio Investment;

preliminary valuation conclusions are then documented and discussed with senior management of the Adviser;

the audit committee of the Board reviews the preliminary valuations of the Adviser and third-party valuation specialist, if any, that may from time to time be engaged by the Board, and responds to the valuation recommendations to reflect any comments; and

the Board discusses valuations and determines the fair value of each investment in the Company’s portfolio in good faith based on the input of the Adviser, the audit committee, and third-party valuation specialist, if any.

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Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

The valuation principles set forth above may be modified from time to time without notice to Unitholders, in whole or in part, as determined by the Board in its sole discretion.

The Board will also (1) periodically assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services, as applicable; (5) oversee the reporting required by Rule 2a-5 under the 1940 Act; and (6) maintain recordkeeping requirements under Rule 2a-5.

When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Company will consider the pricing indicated by the external event to corroborate the 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 the 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.

Investments in all asset classes will be valued utilizing a market approach, an income approach, or both approaches, as appropriate. However, in accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation approaches to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process. For the nine months ended September 30, 2024, there has been no change to the Company’s valuation approaches or techniques and the nature of the related inputs considered in the valuation process.

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

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

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

Level 3: Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The exercise of judgment is based in part on our knowledge of the asset class and our prior experience.

(c)

Gains or losses on investments are calculated by using the specific identification method.

(d)

The Company records dividend income and interest, adjusted for amortization of premium and accretion of discount, on an accrual basis. Loan origination fees, original issue discount, and market discounts are capitalized, and we amortize such amounts into income using the effective interest method. Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income. We record call premiums on loans repaid as interest income when we receive such amounts. Capital structuring fees, amendment fees, consent fees, and any other non-recurring fee income, as well as management fees and other fee income for services rendered, if any, are recorded as other income when earned.

(e)

The Company intends to comply with the applicable provisions of the Code pertaining to RICs to make distributions of taxable income sufficient to relieve it of substantially all U.S. federal income taxes. The Company, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. The Company will accrue excise tax on such estimated excess taxable income as appropriate.

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September 30, 2024

(in thousands, except unit amounts)

(f)

Book and tax basis differences relating to Unitholder distributions and other permanent book and tax differences are typically reclassified among the Company’s capital accounts annually. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from GAAP.

(g)

Distributions to Unitholders are recorded as of the record date. The amount to be paid out as a distribution is determined by the Board. Net realized capital gains, if any, are generally distributed or deemed distributed at least annually.

(h)

In accordance with Regulation S-X and ASC Topic 810—Consolidation, the Company consolidates its interest in controlled investment company subsidiaries, financing subsidiaries and certain wholly-owned holding companies that serve to facilitate investment in portfolio companies, if any. In addition, the Company may also consolidate any controlled operating companies substantially all of whose business consists of providing services to the Company.

(i)

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

(j)

In accordance with ASC 835-30, the Company reports origination and other expenses related to certain debt issuances, if any, as a direct deduction from the carrying amount of the debt liability. Applicable expenses are deferred and amortized using either the effective interest method or the straight-line method over the stated life. The straight-line method may be used on revolving facilities and/or when it approximates the effective yield method.

(k)

The Company records expenses related to applicable equity offering costs as a charge to capital upon the sale of units, in accordance with ASC 946-20-25.

(l)

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

(m)

The Company records expenses directly related to its organization as incurred.

(n)

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

Recent Accounting Pronouncements

The Company’s management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying consolidated financial statements.

Note 3. Agreements and Related Party Transactions

Pursuant to the Investment Management Agreement we have entered into with the Adviser, we intend to pay the Adviser certain management and incentive fees prior to and following an Exchange Listing. Prior to an Exchange Listing, the Adviser has been appointed to provide administrative and coordination services to the Company (in such capacity, the “Administrative Coordinator”). The Company will pay an administration fee to the Administrative Coordinator for such administrative and coordination services. Following an Exchange Listing, we intend to enter into a separate administration agreement with an affiliate pursuant to which

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SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

administrative services would be provided to the Company, as described further below. The cost of the base management fee, the incentive fee and the administration fee will ultimately be borne by our Unitholders.

Management Fees

The Company will pay the Adviser a management fee prior to an Exchange Listing (as the same may be adjusted pursuant to the LLC Agreement and the Investment Management Agreement, the “Pre-Exchange Listing Management Fee”) and a management fee following an Exchange Listing (as the same may be adjusted pursuant to the LLC Agreement and the Investment Management Agreement, the “Post-Exchange Listing Management Fee” and, together with the Pre-Exchange Listing Management Fee, the “Management Fee”). The Management Fee will be payable quarterly in arrears, as follows:

•

Pre-Exchange Listing. Prior to an Exchange Listing, the Pre-Exchange Listing Management Fee will be calculated as of the close of business on the last day of each calendar quarter in an amount equal to 1.50% per annum of Invested Capital (defined as, as of any date, the sum of (i) capital contributions to the Company used to make Portfolio Investments and (ii) the total amount of credit drawn on subscription or similarly structured credit facilities).

•

Post-Exchange Listing. Following an Exchange Listing, the Post-Exchange Listing Management Fee will be an amount equal to 1.50% per annum of the average value of the Company’s total assets at the end of the two most recently completed calendar quarters; provided, however, the Post-Exchange Listing Management Fee will be calculated at an annual rate of 1.00% of the average value of the Company’s total assets at the end of the two most recently completed calendar quarters that exceeds the product of (i) 200% and (ii) the value of the Company’s total net assets at the end of the immediately preceding calendar quarter.

The Management Fee will be appropriately adjusted for any stub period. The Adviser may arrange for the Company to direct to a placement agent any portion of the Management Fee which the Adviser is owed for purposes of paying any placement fee that the Adviser owes to such placement agent.

The Adviser will have the right, in its sole discretion, to waive or reduce, as well as recoup in a subsequent period, the Management Fee to which the Adviser is entitled in respect of all Unitholders’ Units in any particular calendar quarter. Any such Management Fee may be recouped by the Adviser in a future calendar quarter within three years of the date of the applicable waiver of the Management Fee and any such recoupment would be conditioned on the Company’s expense ratio at the time of recoupment, but after giving effect to the recoupment, being equal to or less than the expense ratio at the time of the waiver. The Adviser does not have a current intention to waive any Management Fees.

Incentive Fee

Distributions. Prior to an Exchange Listing, the Company will make distributions out of two categories: Current Proceeds and Disposition Proceeds (collectively referred to as “Investment Proceeds”). “Disposition Proceeds” means all amounts received by the Company upon the disposition of an investment, including full or partial repayments or amortization of principal (but excluding Current Proceeds). “Current Proceeds” means all proceeds from investments, including interest income, fee income, prepayment fees and exit fees, other than Disposition Proceeds, less Company expenses. The Adviser will apportion each Unitholder’s pro rata share of Investment Proceeds between Disposition Proceeds and Current Proceeds.

Pre-Exchange Listing Incentive Fee. Prior to an Exchange Listing, and subject to availability, the Company will cause distributable cash to be distributed to Unitholders and to be paid to the Adviser as an incentive fee (the “Pre-Exchange Listing Incentive Fee”). Amounts of Investment Proceeds apportioned to Unitholders will be divided between and distributed to Unitholders, on the one hand, and the Adviser, on the other hand, in the following amounts and order of priority:

(i) Disposition Proceeds apportioned to Unitholders shall be divided between and distributed to Unitholders, on the one hand, and paid to the Adviser as a Pre-Exchange Listing Incentive Fee, on the other hand, in the following amounts and order of priority:

(A) First, Return of Capital Contributions: 100% to such Unitholder until such Unitholder has received cumulative distributions of Investment Proceeds pursuant to this clause (A) equal to such Unitholder’s total capital contributions to the Company (including amounts contributed to pay Pre-Exchange Listing Management Fees, Pre-Exchange Listing Administration Fees (defined below), Organizational Expenses (defined below) and other Company expenses);

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Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

(B) Second, Unitholder Preferred Return: 100% of all remaining Disposition Proceeds to Unitholders until they have each received cumulative distributions of Investment Proceeds, without duplication, pursuant to this clause (B) and clause (D) below and clauses (ii)(A) and (ii)(C) below equal to 6% per annum, compounded annually, on Unitholders’ capital contributions to the Company (including amounts contributed to pay Pre-Exchange Listing Management Fees, Pre-Exchange Listing Administration Fees, Organizational Expenses and other Company expenses), determined on the basis of all capital contributions made by such Unitholder and considering all distributions (including the subject distribution) under this “—Pre-Exchange Listing Incentive Fee” made to such Unitholder (computed from the dates that such capital contributions were due (or, if actually made later, the date on which such capital contributions were actually made) until the date that the Company, in its sole discretion, designates distributable cash as available for distribution or, if no such designation is made, the occurrence of an Event of Dissolution, as defined in the LLC Agreement) (the “Preferred Return”);

(C) Third, Adviser Catch Up: 100% of all remaining Disposition Proceeds to the Adviser as a Pre-Exchange Listing Incentive Fee, until the Adviser has received payments of Investment Proceeds with respect to Unitholders pursuant to this clause (C) and clause (ii)(B) below equal to 10% of the total amounts due to Unitholders and earned by the Adviser pursuant to clause (B) above and this clause (C) and clauses (ii)(A) and (ii)(B) below; and

(D) Fourth, 90%/10%: 90% of all remaining Disposition Proceeds to Unitholders and 10% of all remaining Disposition Proceeds to the Adviser as a Pre-Exchange Listing Incentive Fee.

In no event will the Adviser receive amounts of Pre-Exchange Listing Incentive Fees under clauses (i)(C) and (i)(D) above in excess of the percentage of the Disposition Proceeds actually distributed to Unitholders pursuant to clauses (i)(B), (i)(C) and (i)(D) above.

In no event will the Adviser receive amounts attributable to Disposition Proceeds that, as of any distribution or payment date, exceed 20% of cumulative realized capital gains net of all cumulative realized capital losses and unrealized capital depreciation.

(ii) Current Proceeds apportioned to Unitholders shall be divided between and distributed to Unitholders, on the one hand, and paid to the Adviser as a Pre-Exchange Listing Incentive Fee, on the other hand, in the following amounts and order of priority:

(A) First, Unitholder Preferred Return: 100% of all Current Proceeds to Unitholders until Unitholders have received cumulative distributions of Investment Proceeds, without duplication, pursuant to this clause (A) and clause (C) below and pursuant to clauses (i)(B) and clause (i)(D) above equal to the Preferred Return;

(B) Second, Adviser Catch Up: 100% of all remaining Current Proceeds to the Adviser as a Pre-Exchange Listing Incentive Fee until the Adviser has received payments of Investment Proceeds with respect to Unitholders pursuant to this clause (B) and clause (i)(C) above equal to 10% of the total amounts due to Unitholders and earned by the Adviser pursuant to clause (A) above and this clause (B) and pursuant to clauses (i)(B) and clause (i)(C) above; and

(C) Third, 90%/10%: 90% of all remaining Current Proceeds to Unitholders and 10% of all remaining Current Proceeds to the Adviser as a Pre-Exchange Listing Incentive Fee.

In no event will the Adviser receive amounts of Pre-Exchange Listing Incentive Fees under clauses (ii)(B) and (ii)(C) above in excess of the percentage of the Current Proceeds actually distributed to Unitholders pursuant to clauses (ii)(A), (ii)(B) and (ii)(C) above.

Post-Exchange Listing Incentive Fee. Following an Exchange Listing, the Company will pay an incentive fee to the Adviser consisting of two parts, as follows (the “Post-Exchange Listing Incentive Fee” and, together with the Pre-Exchange Listing Incentive Fee, the “Incentive Fee”):

(i)

Pre-Incentive Fee Net Investment Income. One part will be calculated and payable quarterly in arrears based on the net investment income for the immediately preceding calendar quarter.

For this purpose, Pre-Incentive Fee Net Investment Income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued by the Company during the calendar quarter, minus the Company’s operating expenses for the quarter (including the Post-Exchange Listing Management Fees, expenses payable under an administration

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SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

agreement, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the Post-Exchange Listing Incentive Fee).

Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, will be compared to a “hurdle rate” of 1.75% per quarter (7.00% annualized). The Company’s Pre-Incentive Fee Net Investment Income used to calculate this part of the Post-Exchange Listing Incentive Fee is also included in the amount of its gross assets used to calculate the 1.50% Post-Exchange Listing Management Fee.

The Company will pay the Adviser a Post-Exchange Listing Incentive Fee with respect to the Company’s Pre-Incentive Fee Net Investment Income in each calendar quarter as follows:

no Post-Exchange Listing Incentive Fee in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the quarterly hurdle rate of 1.75%;

ii.

100% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.1875% in any calendar quarter (8.75% annualized); this portion of the Pre-Incentive Fee Net Investment Income (which exceeds the hurdle but is less than 2.1875%) is referred to herein as the “catch-up.” The “catch-up” is meant to provide the Adviser with 20% of the Company’s Pre-Incentive Fee Net Investment Income as if a hurdle did not apply if this Pre-Incentive Fee Net Investment Income exceeds 2.1875% in any calendar quarter; and

iii.

20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.1875% in any calendar quarter (8.75% annualized) payable to the Adviser (once the hurdle is reached and the catch-up is achieved, 20% of all Pre-Incentive Fee Net Investment Income thereafter is allocated to the Adviser).

These calculations will be appropriately pro-rated for any period of less than three months.

(ii) Capital Gains Fee. The second part of the Post-Exchange Listing Incentive Fee, the “Capital Gains Fee”, will be determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement as set forth below), commencing as of the end of the first fiscal year following an Exchange Listing, and will equal 20.0% of the Company’s realized capital gains, if any, on a cumulative basis through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation as of each fiscal year end, less the amount of any previously paid capital gain Post-Exchange Listing Incentive Fees, with respect to the Company; provided that the Post-Exchange Listing Incentive Fee determined as of the end of the fiscal year in which an Exchange Listing is completed will be calculated for a period of shorter than twelve calendar months to take into account any realized capital gains computed net of all realized capital losses and unrealized capital depreciation. In the event that the Investment Management Agreement will terminate as of a date that is not a calendar year end, the termination date will be treated as though it were a calendar year end for purposes of calculating and paying a Capital Gains Fee.

Administration Fees and Expenses

Pre-Exchange Listing Administration Fees. The Company will pay SLR, in its capacity as the Administrative Coordinator, a fee (the “Pre-Exchange Listing Administration Fee” or “Administration Fee” ), calculated as of the close of business in New York, New York on the last day of each calendar quarter (the “Administration Fee Calculation Date”), in an amount equal to 0.08% per annum of the average Cost Basis (defined as, as of any date, the aggregate accreted and amortized cost of all Portfolio Investments, including (i) any amounts reinvested in Portfolio Investments and (ii) the cost of Portfolio Investments acquired using leverage), as measured on the last day of the preceding quarter and the last day of the current quarter for the period ended and payable quarterly in arrears after such Administration Fee Calculation Date. The Pre-Exchange Listing Administration Fee will not offset any fees paid to the Adviser. The Administrative Coordinator will be responsible for all expenses of its own staff responsible for (i) certain on-going, routine,

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SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

non-investment-related administrative services for the Company, (ii) the coordination of various third-party services needed or required by the Company and (iii) certain Unitholder servicing functions.

The Pre-Exchange Listing Administration Fee will be appropriately adjusted for any stub period.

The Administrative Coordinator will have the right, in its sole discretion, to waive, as well as recoup in a subsequent period, the Pre-Exchange Listing Administration Fee to which it is entitled in respect of all Unitholders’ Units in any particular calendar quarter. Any such Pre-Exchange Listing Administration Fee may be recouped by the Administrative Coordinator in a future calendar quarter within three years of the date of the applicable waiver of the Pre-Exchange Listing Administration Fee and any such recoupment would be conditioned on the Company’s expense ratio at the time of recoupment, but after giving effect to the recoupment, being equal to or less than the expense ratio at the time of the waiver. The Adviser does not have a current intention to waive any Pre-Exchange Listing Administrative Fee.

Post-Exchange Listing Administration Expenses. In connection with an Exchange Listing, and subject to Board approval, the Company intends to enter into an administration agreement with SLR Capital Management, LLC (“SCM”) pursuant to which SCM will provide administrative services to the Company. For providing these services, facilities and personnel, the Company will reimburse SCM for the Company’s allocable portion of overhead and other expenses incurred by SCM in performing its obligations under the administration agreement (together with the Pre-Exchange Listing Administration Fee, the “Administration Expenses”).

For the three and nine months ended September 30, 2024, the Company incurred $107 and $308, respectively, in Management Fees, $7 and $18, respectively, in Administration Fees and $0 and $0, respectively, in Incentive Fees. For the three months ended September 30, 2023 and the period January 18, 2023 (commencement of operations) to September 30, 2023, the Company incurred $47 and $58, respectively, in Management Fees, $1 and $1, respectively, in Administration Fees and $0 and $0, respectively, in Incentive Fees.

In addition, prior to an Exchange Listing, the aggregate amount of certain operating expenses relating to Unitholders investing directly in the Company will not exceed the following limits in any fiscal year: (A) if the Company has less than or equal to $400,000 in Commitments, an amount equal to the sum of (x) the product of the Commitments and 0.0025 and (y) $1,250, or (B) if the Company has greater than $400,000 in Commitments, $2,250 (such figure, the “Operating Expense Cap”). Any amount in excess of the Operating Expense Cap for any fiscal year will be paid by the Adviser. For the avoidance of doubt, (i) the Operating Expense Cap will not apply to any fees, costs, expenses and liabilities allocable to persons investing indirectly in the Company through any Unitholder, (ii) the Company will not bear the costs of any third-party valuation agent engaged solely for purposes of valuing the Company’s Portfolio Investments at each quarter end and (iii) the Operating Expense Cap will no longer apply upon the effectuation of an Exchange Listing.

The Adviser or Administrative Coordinator and/or their affiliates have advanced organizational and offering expenses to the Company, which include organizational fees, costs, expenses and liabilities of the Company, including legal expenses, incurred in connection with the initial offering of Units and the formation and establishment of the Company (the “Organizational Expenses”). The Adviser or Administrative Coordinator (or such affiliate) will be reimbursed by the Company for such advanced costs and expenses in an amount not to exceed $500. The Company will be responsible for and pay (or reimburse) the Organizational Expenses subject to the cap described in the preceding sentence. Accordingly, in 2023, $76 of offering expenses were charged to capital and $131 of organizational costs were expensed.

Note 4. Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1. Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access.

Table of Contents

SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

Level 2. Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

Quoted prices for similar assets or liabilities in active markets;

Quoted prices for identical or similar assets or liabilities in non-active markets;

Pricing models whose inputs are observable for substantially the full term of the asset or liability; and

Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

Level 3. Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s and, if applicable, an independent third-party valuation firm’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3).

Gains and losses for assets and liabilities categorized within the Level 3 tables below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Such reclassifications involving Level 3 assets and liabilities are reported as transfers in/out of Level 3 as of the end of the quarter in which the reclassifications occur. Within the fair value hierarchy tables below, cash and cash equivalents are excluded but could be classified as Level 1.

The following tables present the balances of assets measured at fair value on a recurring basis, as of September 30, 2024 and December 31, 2023:

Fair Value Measurements

As of September 30, 2024


	Level 1		Level 2		Level 3		Total
Assets:
Bank Debt/Senior Secured Loans	$	—	$	—	$	38,123	$	38,123
Total Investments	$	—	$	—	$	38,123	$	38,123



Fair Value Measurements
As of December 31, 2023




	Level 1		Level 2		Level 3		Total
Assets:
Bank Debt/Senior Secured Loans	$	—	$	—	$	21,651	$	21,651
Warrants		—		—		3		3
Total Investments	$	—	$	—	$	21,654	$	21,654

Table of Contents

SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

While the Company has not made an election to apply the fair value option of accounting to any of its debt obligations, if the Company’s debt obligations were carried at fair value at September 30, 2024, the fair value of the SPV Facility and the Subscription Facility would be $11,100 and $13,100, respectively. All debt obligations would be considered Level 3 liabilities and would be valued with market yield as the unobservable input.

While the Company has not made an election to apply the fair value option of accounting to any of its debt obligations, if the Company’s debt obligations were carried at fair value at December 31, 2023, the fair value of the SPV Facility and the Subscription Facility would be $2,000 and $11,400, respectively. All debt obligations would be considered Level 3 liabilities and would be valued with market yield as the unobservable input.

The following tables provide a summary of the changes in fair value of Level 3 assets for the three and nine months ended September 30, 2024, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at September 30, 2024:


	Bank Debt/Senior Secured Loans			Warrants			Total
Fair value, June 30, 2024	$	34,886		$	3		$	34,889
Total gains or losses included in earnings:
Net realized gain		—			4			4
Net change in unrealized gain		293			—			293
Purchase of investment securities*		6,246			—			6,246
Proceeds from dispositions of investment securities		(3,302	)		(7	)		(3,309	)
Transfers into Level 3		—			—			—
Transfers out of Level 3		—			—			—
Fair value, September 30, 2024	$	38,123		$	—		$	38,123
Unrealized gains for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
Net change in unrealized gain	$	295		$	—		$	295



	Bank Debt/Senior Secured Loans			Warrants			Total
Fair value, December 31, 2023	$	21,651		$	3		$	21,654
Total gains or losses included in earnings:
Net realized gain		—			4			4
Net change in unrealized gain		513			—			513
Purchase of investment securities*		22,850			—			22,850
Proceeds from dispositions of investment securities		(6,891	)		(7	)		(6,898	)
Transfers into Level 3		—			—			—
Transfers out of Level 3		—			—			—
Fair value, September 30, 2024	$	38,123		$	—		$	38,123
Unrealized gains for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
Net change in unrealized gain	$	516		$	—		$	516

Table of Contents

SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

The following table provides a summary of the changes in fair value of Level 3 assets for the period January 18, 2023 (commencement of operations) to December 31, 2023, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2023:


	Bank Debt/Senior Secured Loans			Warrants		Total
Fair value, January 18, 2023	$	—		$	—	$	—
Total gains or losses included in earnings:
Net realized loss		—			—		—
Net change in unrealized gain (loss)		94			—		94
Purchase of investment securities*		21,623			3		21,626
Proceeds from dispositions of investment securities		(66	)		—		(66	)
Transfers into Level 3		—			—		—
Transfers out of Level 3		—			—		—
Fair value, December 31, 2023	$	21,651		$	3	$	21,654
Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period:
Net change in unrealized gain (loss)	$	94		$	—	$	94

* Includes PIK capitalization and accretion of discount

Quantitative Information about Level 3 Fair Value Measurements

The Company typically determines the fair value of its performing debt investments utilizing a yield analysis. In a yield analysis, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to current contractual interest rates, relative maturities and other key terms and risks associated with an investment. Among other factors, a significant determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company.

Significant unobservable quantitative inputs typically used in the fair value measurement of the Company’s Level 3 assets and liabilities primarily reflect current market yields, including indices, and readily available quotes from brokers, dealers, and pricing services as indicated by comparable assets and liabilities, as well as enterprise values, returns on equity and earnings before income taxes, depreciation and amortization (“EBITDA”) multiples of similar companies, and comparable market transactions for equity securities.

Table of Contents

SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

Quantitative information about the Company’s Level 3 asset fair value measurements as of September 30, 2024 and December 31, 2023 is summarized in the tables below:

         
        Asset or
Liability

        Fair Value at
September 30, 2024

        Principal Valuation
Technique/Methodology

        Unobservable Input

        Range (Weighted
Average)

Bank Debt / Senior Secured Loans

Asset

38,123

Income Approach

Market Yield

9.5% - 14.5%
(11.4%)

         
        Asset or
Liability

        Fair Value at
December 31,
2023

        Principal Valuation
Technique/Methodology

        Unobservable Input

        Range (Weighted
Average)

Bank Debt / Senior Secured Loans

Asset

21,651

Income Approach

Market Yield

11.1% - 17.6%
(12.5%)

Warrants

Asset

3

Market Approach

Volatility

18.9% - 18.9%
(18.9%)

Significant increases or decreases in any of the above unobservable inputs in isolation, including unobservable inputs used in deriving bid-ask spreads, if applicable, would result in a significantly lower or higher fair value measurement for such assets. Generally, an increase in market yields may result in a decrease in the fair value of certain of the Company’s investments. Weighted averages in the above tables are calculated based on fair value of the underlying assets.

Note 5. Debt

SPV Facility—On December 12, 2023, the Company, through its wholly-owned subsidiary, SLR Private Credit BDC II SPV LLC, entered into the $25,000 SPV Facility with Citibank, N.A. acting as administrative agent. Effective with an amendment on July 10, 2024, the stated interest rate on the SPV Facility is Term SOFR plus 2.70% with no SOFR floor requirement, and the final maturity date is December 12, 2028. The fee on undrawn commitments is currently 0.50%. The SPV Facility is secured by all of the assets held by the SPV. Under the terms of the SPV Facility, the Company and SPV, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SPV Facility also includes usual and customary events of default for credit facilities of this nature. As of September 30, 2024, there were $11,100 of borrowings outstanding under the SPV Facility.

Subscription Facility—On March 20, 2023, the Company established the $25,000 Subscription Facility due March 20, 2025 with ING Capital LLC, as administrative agent and lender. The stated interest rate on the Subscription Facility is SOFR plus 2.75-3.00%. Under the terms of the Subscription Facility, the Company has made certain customary representations and warranties, and is required to comply with various covenants, including reporting requirements and other customary requirements for similar credit facilities. The Subscription Facility also includes usual and customary events of default for credit facilities of this nature. As of September 30, 2024, there were $13,100 of borrowings outstanding under the Subscription Facility.

The average annualized interest cost for borrowings for the nine months ended September 30, 2024 and the period March 20, 2023 (commencement of the Subscription Facility) to December 31, 2023 was 8.28% and 8.42%, respectively. These costs are exclusive of other credit facility expenses such as unused fees. The maximum amount borrowed on the credit facilities during the nine months ended September 30, 2024 and the period March 20, 2023 (commencement of the Subscription Facility) to December 31, 2023 was $24,200 and $13,400, respectively.

Table of Contents

SLR PRIVATE CREDIT BDC II LLC

Notes to Consolidated Financial Statements (unaudited) (continued)

September 30, 2024

(in thousands, except unit amounts)

Note 6. Commitments and Contingencies

The Company had unfunded debt commitments to various revolving and delayed-draw term loans. The total amount of these unfunded commitments as of September 30, 2024 and December 31, 2023 was $14,786 and $19,793, respectively, comprised of the following:


	September 30, 2024		December 31, 2023
Arcutis Biotherapeutics, Inc.	$	3,171	$	—
Plastic Management, LLC		2,186		—
Southern Orthodontics Partners Management, LLC		1,486		—
Cerapedics, Inc.		1,064		1,489
AAH Topco, LLC		1,036		1,802
Western Veterinary Partners LLC		884		—
CVAUSA Management, LLC		741		741
Legacy Service Partners, LLC		588		1,237
World Insurance Associates, LLC		579		852
SPR Therapeutics, Inc.		499		—
Quantcast Corporation		418		—
West-NR Parent, Inc.		387		395
FE Advance, LLC		270		—
The Townsend Company, LLC		263		261
United Digestive MSO Parent, LLC		255		273
OIS Management Services, LLC		224		1,362
Medrina, LLC		190		190
Alkeme Intermediary Holdings, LLC		131		668
Crewline Buyer, Inc.		122		122
Exactcare Parent, Inc.		81		81
WCI-BXC Purchaser, LLC		76		77
MRI Software LLC		67		67
Apex Service Partners, LLC		41		277
Nexus Intermediate III, LLC		27		—
AMF Levered II, LLC		—		3,133
Outset Medical, Inc.

SLR Private Credit BDC II LLC 10-Q