Here are 1-3 brief analogies for OFS Capital:

• It's like a Blackstone or KKR, but focused on providing loans and investments to established U.S. middle-market companies.
• Think of it as an Ares Management specializing in debt and equity financing for growing U.S. businesses in the middle market.

OFS Capital provides the following major financial products and services:

• Senior Secured Loans: Debt instruments that are collateralized and have a high priority claim in case of default.
• Unitranche Loans: A single debt facility that combines both senior and subordinated debt into one loan.
• Subordinated/Mezzanine Loans: Debt that ranks below senior debt but above equity, often including an equity component like warrants.
• Minority Equity Investments: Non-controlling ownership stakes in companies, including structured, preferred, and common equity securities.
• Warrants: Securities that grant the holder the right to purchase a company's stock at a predetermined price.

OFS Capital Corporation (OFS) primarily serves other companies by providing flexible capital solutions through debt and minority equity investments. As a business development company (BDC), its "customers" are the U.S.-based middle-market companies it invests in.

The provided background information does not list the names of specific customer companies, as these are typically private entities within OFS Capital's investment portfolio. However, the company targets the following categories of businesses as its customers:

• U.S.-based middle-market companies: These companies generally have revenues between $10 million and $200 million, annual EBITDA exceeding $5 million, and enterprise values between $10 million and $500 million. OFS Capital seeks to invest between $5 million and $35 million in these companies, with debt investment values typically between $5 million and $25 million.
• Companies across diverse industries: OFS Capital invests in a broad array of sectors, including aerospace and defense, business services, consumer products and services, food and beverage, health care services, specialty chemicals, transportation and logistics, value added distribution, franchising, and industrial and niche manufacturing.
• Companies seeking various capital solutions: Customers are typically established businesses looking for recapitalizations, refinancing, management and leveraged buyouts, acquisition financings, shareholder liquidity events, growth capital, independent sponsor transactions, ESOPs, and minority investments. The firm specifically avoids investing in operational turnarounds or start-up businesses.

Bilal Rashid, Chairman & Chief Executive Officer
Mr. Rashid has served as Chairman of the Board and Chief Executive Officer of OFS Capital Corporation since 2014. He is also President and a Senior Managing Director of OFS Capital Management, LLC. Mr. Rashid brings over 25 years of experience in investing related to corporate credit and structured credit, debt capital markets, and investment banking. Prior to joining Orchard First Source Capital, Inc. (an affiliate of OFS Capital Management) in 2008, he was a managing director in the global markets and investment banking division at Merrill Lynch. Before joining Merrill Lynch in 2005, he was a vice president at Natixis Capital Markets from 2003 to 2005, having joined as part of a large team move from CIBC World Markets, where he was a Director from 1999 to 2003. His earlier experience includes working as an investment analyst in the project finance area at the International Finance Corporation (part of the World Bank) and as a financial analyst at Lehman Brothers.

Kyle Spina, Chief Financial Officer & Treasurer
Mr. Spina was appointed Chief Financial Officer and Treasurer of OFS Capital Corporation, effective March 31, 2025. He previously served as Chief Accounting Officer of OFS Capital since April 2023. Mr. Spina joined OFS Capital Management, LLC in April 2021 as Vice President and Controller of Fund Accounting and Reporting. He has more than 15 years of experience in public and private accounting. His prior roles include Assistant Controller of Credit Funds for Thoma Bravo, LP from 2020 to 2021, and Controller and Accounting Manager for Fidus Investment Corporation and affiliates from 2016 to 2020. Mr. Spina began his career in public accounting, including serving as an Audit Manager at BDO from 2014 to 2016, focusing on audits of public companies.

Mukya Porter, Chief Compliance Officer
Ms. Porter currently serves as the Chief Compliance Officer of OFS Capital Corporation, where she oversees the compliance and risk management functions. She has over 10 years of experience advising investment advisers, investment banks, and other financial institutions.

Tod Reichert, Managing Director, General Counsel & Chief Administrative Officer
Mr. Reichert is a Managing Director, General Counsel, and Chief Administrative Officer of OFS Capital Management, LLC.

Glen Ostrander, Managing Director
Mr. Ostrander is a Managing Director of OFS Capital Management, LLC and Orchard First Source Capital, Inc. He is responsible for capital markets related activities, strategic initiatives, and structured products investment activities of the firm. Mr. Ostrander has over 25 years of experience in banking and debt capital markets focusing on securitization, corporate credit, and structured credit. Before joining Orchard First Source Capital, Inc., he worked within the Global Markets & Investment Banking division at Merrill Lynch.

• Credit Quality and Potential Loan Losses: OFS Capital specializes in providing debt and equity financing to U.S. middle-market companies, which are generally considered lower credit quality obligations and can be illiquid. This inherently carries the risk of loan losses and non-accrual loans, directly impacting the value of its investment portfolio and its Net Asset Value (NAV) per share.

• Liquidity Challenges and Cost of Capital: The company has faced "very serious challenges to the BDC's liquidity," which contributed to a significant dividend cut. Additionally, the rising cost of debt represents a major headwind for OFS Capital.

• Sensitivity to Economic Downturns and Interest Rate Fluctuations: OFS Capital's financial performance is highly dependent on general economic conditions and interest rate cycles. Economic slowdowns and recession risks can negatively impact the ability of its portfolio companies to repay loans, pressuring valuations and investor sentiment.

OFS Capital Corporation primarily serves U.S.-based middle-market companies by providing flexible capital solutions, predominantly through debt capital and, to a lesser extent, minority equity investments. The company targets businesses with revenues between $10 million and $200 million, annual EBITDA exceeding $5 million, and enterprise values between $10 million and $500 million. Their debt investments typically range from $5 million to $25 million.

The addressable market for OFS Capital's main products and services is the U.S. middle market, specifically the segment that aligns with their investment criteria. This market can be viewed from two perspectives: the number and aggregate financials of the target companies, and the size of the capital market providing financing to these companies.

Market Size for Target Companies (U.S. Region)

The U.S. middle market generally encompasses companies with annual revenues between $10 million and $1 billion. There are an estimated 200,000 to 300,000 such middle-market companies operating in the United States. These businesses collectively generate over $10 trillion in annual revenue, accounting for approximately one-third of the U.S. private sector's gross receipts.

More specifically, the lower middle market, which largely aligns with OFS Capital's target revenue and EBITDA ranges, includes companies typically generating $10 million to $50 million in annual revenues with $2 million to $10 million in EBITDA.

Market Size for Capital Solutions (U.S. Region)

OFS Capital operates within the U.S. private credit market, which supplies capital to middle-market companies. This market has experienced significant growth:

• The U.S. private credit market was approximately $1.3 trillion in 2025 and is projected to continue expanding.
• Analysts predict this market could grow to over $3 trillion by 2028.
• The size of direct lending to U.S. middle-market companies was estimated at $1.0 trillion as of March 31, 2022, demonstrating substantial growth from $400 billion in 2019.
• Middle-market private credit deals typically range from $20 million to $200 million, indicating a broad scope for lending within this segment. Although OFS's debt deals are on the lower end ($5 million to $25 million), they operate within this larger private credit ecosystem.
• There is a significant demand for middle-market credit, with one source indicating a "USD 4 trillion appetite" for such financing.
• U.S. direct lending funds held a record $146 billion in "dry powder" (committed but unallocated capital) at the end of 2025, indicating substantial capital available for deployment.

1. Monetization of Equity Stakes: OFS Capital plans to monetize its significant equity stake in Fansteel Holdings. Management views a potential exit from this position as a key long-term driver for improved net investment income and reduced portfolio concentration. This move is expected to free up capital that can be redeployed into new income-generating investments.
2. Strategic Deployment of Capital to U.S. Middle-Market Companies: OFS Capital's core strategy involves providing flexible capital solutions, primarily through debt capital and minority equity investments, to U.S.-based middle-market companies. Continued execution of this strategy, targeting businesses with strong fundamentals, recurring revenue, and growth opportunities across various industries, is a fundamental driver of portfolio expansion and associated interest and fee income.
3. Focus on First-Lien, Senior Secured Lending: The company emphasizes a continued focus on building a resilient loan portfolio, primarily composed of first-lien and second-lien senior secured loans. This strategy is intended to generate stable and predictable interest income, which is a primary component of OFS Capital's revenue.
4. Enhanced Financial Flexibility through Debt Management: OFS Capital has taken strategic actions to strengthen its balance sheet by extending debt maturities and reducing total debt. This enhanced financial flexibility provides greater capacity for future investment originations and portfolio growth, which can lead to increased revenue from new loans and investments.

Share Repurchases

• OFS Capital has a Stock Repurchase Program authorized by its Board, initially for up to $10.0 million of common stock.
• The program was extended on April 30, 2024, for an additional two-year period through May 22, 2026.
• No shares were repurchased under this program during the three months ended March 31, 2025, or March 31, 2024.

Share Issuance

• OFS Capital had 13,398,078 common shares issued and outstanding as of December 31, 2025, and December 31, 2024.
• The number of common shares outstanding was also 13,398,078 as of April 30, 2025.

Outbound Investments

• As of December 31, 2025, OFS Capital's investment portfolio had a fair value of $342.0 million.
• The portfolio comprised $179.8 million in debt investments (95% first-lien, 5% second-lien) across 34 companies, $100.6 million in equity investments in 15 companies, and $61.6 million in structured finance positions.
• During the fourth quarter of 2025, one loan was placed on non-accrual status, while another previously on non-accrual status was restructured and returned to accrual status.