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Here are 2 brief analogies to describe Fidus Investment (FDUS):

1. A REIT for private companies.

Similar to how a Real Estate Investment Trust (REIT) like Simon Property Group pools money to invest in real estate and distributes income to shareholders, Fidus Investment is a publicly traded company that invests in the debt and equity of private, middle-market businesses and aims to distribute its earnings as dividends.

2. A publicly traded mutual fund for private businesses.

Much like a mutual fund from a company like Vanguard or Fidelity pools investor capital to build a diversified portfolio of public stocks or bonds, Fidus Investment serves as a publicly traded vehicle that invests in a diversified portfolio of loans and equity stakes in private, mid-sized companies.

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• First Lien Debt: Provides senior secured loans with the highest repayment priority to portfolio companies.
• Unitranche Debt: Offers a single debt facility combining senior and subordinated debt for simplified financing.
• Second Lien Debt: Provides secured loans that rank junior to first lien debt.
• Subordinated Debt (Mezzanine Debt): Offers unsecured loans that rank below senior debt but above equity.
• Equity Investments: Makes direct investments in the common or preferred stock and warrants of its portfolio companies.

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Fidus Investment (symbol: FDUS) is a Business Development Company (BDC) that primarily provides customized debt and equity financing solutions to lower middle-market companies. As such, its "customers" are other companies, specifically its portfolio companies that receive financing from FDUS.

Due to the nature of FDUS's business model as an investment firm rather than a traditional vendor, it does not have "major customers" in the typical sense that purchase goods or services. Its financial performance is tied to the success of its diverse portfolio of private companies.

FDUS's investment strategy focuses on providing capital to private businesses for growth, acquisitions, or recapitalizations. As such, its "customer companies" are exclusively private entities across various industries. Therefore, no specific public customer companies or their symbols can be identified, as all of FDUS's portfolio companies are private and do not have public stock symbols.

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• Fidus Investment Advisers, LLC
• U.S. Bancorp (Symbol: USB)
• Computershare Limited (Symbol: CPU)
• KPMG LLP

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Edward H. Ross, Chairman of the Board and Chief Executive Officer

Mr. Ross has over 25 years of experience investing debt and equity capital in lower middle-market companies. He co-founded Fidus Capital, LLC, the predecessor firm to Fidus Investment's advisor, in 2005. Additionally, he co-founded Fidus Partners, LLC, an investment banking firm. Prior to Fidus, Mr. Ross was a managing director and head of the Chicago office for Allied Capital Corporation, a publicly-traded business development company, from 2002 to 2005, where he focused on making debt and equity investments in middle-market companies. Before Allied Capital, he co-founded Middle Market Capital, a merchant banking group of Wachovia Securities and its predecessor, First Union Securities, Inc.

Shelby E. Sherard, Chief Financial Officer, Chief Compliance Officer and Corporate Secretary

Ms. Sherard brings over 25 years of finance experience to Fidus. She joined Fidus Investment Advisors, LLC in 2014. Before joining Fidus, Ms. Sherard was a financial officer at Prologis, Inc., where she served as Chief Financial Officer, Americas, and later oversaw the U.S. tax department. Her previous roles include Finance Director for Chicago Union Station Development Company, LLC, Executive Vice President and CFO of Grubb & Ellis Company, and CFO and Senior Vice President of SiteStuff, Inc. She also held positions at Morgan Stanley, LaSalle Partners Inc., and Hewitt Associates, Inc.

Thomas C. Lauer, President & Interested Director

Mr. Lauer possesses over 25 years of experience investing debt and equity capital in lower middle-market companies. He was a co-founder of Fidus Capital LLC in 2005. From 2008 to June 2011, he served as a Managing Partner of Fidus Partners, LLC, an investment banking firm. Prior to that, Mr. Lauer was a managing director of Allied Capital Corporation, a publicly-traded business development company, from 2004 to 2008, where he was a member of its Management Committee and investment committees. His experience also includes working with the Global Sponsor Finance Group of GE Capital and the Leveraged Capital Group at Wachovia Securities.

Michael Miller, Managing Director

Mr. Miller has over 30 years of leveraged finance and corporate lending and origination experience. He joined Fidus Capital, LLC, and Fidus Partners, LLC in 2010. As a Managing Director with Fidus Partners, he leads business development activities, including coverage of financial sponsors and family businesses, indicating a focus on private equity-backed companies. Prior to joining Fidus, Mr. Miller was Managing Director and head of business development for Allied Capital Corporation for five years, until the company was sold.

John J. Ross, II, Partner

Mr. Ross is a Partner at Fidus Capital and also serves as a manager of Fidus Investment's Investment Advisor and a member of its investment committee. He is the brother of Edward H. Ross.

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The key risks to Fidus Investment (FDUS) are:

1. Sensitivity to Interest Rate Changes: Fidus Investment's portfolio largely consists of floating-rate loans, making it highly susceptible to fluctuations in interest rates. A faster-than-expected decrease in interest rates could negatively impact weighted average yields due to a time lag in refinancing its debt at lower rates. Conversely, uncertainty regarding the Federal Reserve's policy changes remains a key risk.
2. Risk of Rising Non-Accruals and Economic Uncertainty: As a business development company (BDC) investing in lower middle-market companies, Fidus Investment faces the inherent risk of its portfolio companies defaulting on their loans, leading to rising non-accruals. General economic uncertainty can also negatively affect the financial health and cash flows of its portfolio companies, thereby impacting Fidus Investment's returns.
3. Dependence on External Financing and Dividend Sustainability: Fidus Investment relies on external financing to fuel its portfolio growth, as a significant portion of its earnings is distributed to shareholders. An unfavorable share price, particularly if it trades below its net asset value (NAV), could hinder its ability to raise additional capital, limiting growth. Furthermore, weak dividend coverage and increasing management and interest expenses can compress net investment income, placing the sustainability of its dividend payments, especially supplemental dividends, at risk.

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Fidus Investment Corporation (NASDAQ: FDUS) is a business development company (BDC) that specializes in providing customized debt and equity financing solutions, along with advisory services, to lower middle-market companies in the United States. These target companies typically have annual revenues ranging from $10 million to $150 million.

The primary addressable market for Fidus Investment's core services, which include debt financing (senior secured, subordinated, and unitranche loans) and equity investments (preferred or common equity) for lower middle-market companies, is the U.S. private credit market.

• The **U.S. Private Credit Market** is a significant and growing market. It was estimated to be between $1.5 trillion and $2.1 trillion, with approximately three-quarters of this market in the United States. More specifically, the U.S. market accounted for around $1.1 trillion in 2024. Other estimates indicate the U.S. private credit market at approximately $1.25 trillion, having roughly doubled in size over the past five years. The global private credit market is estimated at $1.67 trillion in 2025 and is projected to reach $2.9 trillion by 2030, with North America holding the largest market share.

Fidus specifically targets the **lower middle market** within the U.S. The U.S. middle market, encompassing companies with pre-tax earnings between $5 million and $250 million, consists of approximately 200,000 firms. More than 90% of these middle-market companies fall into the lower middle market segment. This segment (defined by some as companies with annual revenues between $10 million and $150 million) has seen substantial transaction volume, with an average of 6,500 transactions valued at over $400 billion annually since 2021. Collectively, early and emerging midsize businesses (revenues between $11 million and $100 million) account for nearly 90% of the U.S. middle market and generate $5.4 trillion in annual revenue.

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Fidus Investment Corporation (FDUS) is expected to drive future revenue growth over the next 2-3 years through a combination of strategic portfolio expansion, a disciplined investment approach in the lower middle market, and the potential for capital appreciation from its equity co-investments.

Here are 3-5 expected drivers of future revenue growth for Fidus Investment:

1. Continued Expansion of the Investment Portfolio through New Originations and Add-on Investments: Fidus consistently emphasizes growing its investment portfolio by originating new debt and equity investments and providing follow-on capital to existing portfolio companies. For example, in Q1 2025, the total investment portfolio increased by 6% to approximately $1.2 billion, with $115.6 million in originations, including investments in seven new companies. Management has indicated a robust pipeline of new investment opportunities and add-on investments in existing portfolio sectors, anticipating active quarters ahead.

2. Strategic Focus on First Lien Debt and Yield Generation: Fidus prioritizes first lien investments, which constituted 82% of its debt portfolio in Q3 2025, demonstrating a continued migration toward these secured assets. This focus helps ensure a stable and recurring stream of interest income, which is a primary component of the company's total investment income. The weighted average effective yield on debt investments was 13.0% as of September 30, 2025, contributing to strong overall portfolio performance.

3. Capital Appreciation from Equity Co-investments: As part of its investment strategy, Fidus often co-invests in the equity of its portfolio companies. This approach allows for potential capital appreciation, which can significantly contribute to revenue growth. For instance, in Q1 2025, Fidus monetized equity investments in two companies for a realized gain of $13.3 million. This dual focus on current income from debt and potential capital gains from equity is central to its objective of providing attractive risk-adjusted returns.

4. Disciplined Underwriting and Leveraging a Robust Origination Network in the Lower Middle Market: Fidus targets lower middle-market companies (typically with revenues between $10 million and $150 million) that exhibit strong cash flow generation, moderate leverage, and defensible market positions. The company leverages its well-established direct origination network and the extensive experience of its investment team to identify, assess, structure, and monitor these investments. This disciplined approach aims to maintain portfolio quality, minimize non-accruals, and support consistent financial performance, contributing to long-term revenue stability and growth.

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Share Repurchases

• Fidus Investment Corporation has an open market stock repurchase program, under which it is authorized to acquire up to $5.0 million of its outstanding common stock.
• The Board extended this Stock Repurchase Program through December 31, 2025.
• In 2020, Fidus repurchased 25,719 shares of common stock for a cost of approximately $268,000.

Share Issuance

• Net asset value growth in the third quarter of 2025 was partly due to accretive share issuances under an At-The-Market (ATM) program.

Outbound Investments

• In the third quarter of 2025, Fidus invested $74.5 million in debt and equity securities, including one new portfolio company, and subsequently invested an additional $40.2 million in two new portfolio companies.
• During the second quarter of 2025, the company invested $94.5 million in new debt and equity positions.
• As of September 30, 2025, Fidus's total investment portfolio had a fair value of $1.2 billion, consisting of 92 active portfolio companies.