1. It's like **Goldman Sachs** for private middle-market loans.

2. Think of it as **Blackstone** for smaller private business debt.

• Debt Financing: PhenixFIN provides various forms of secured and unsecured loans and notes, including first lien senior secured, second lien senior secured, senior secured notes, senior subordinated notes, subordinate notes, and unitranche loans, to small and middle-market companies.
• Equity Participation: The firm seeks equity interests, such as warrants, alongside its debt investments in portfolio companies.
• Managerial Assistance: PhenixFIN may offer strategic and operational guidance to certain investee companies, sometimes by taking a board seat.

PhenixFIN Corporation (PFX) operates as a Business Development Company (BDC). Its business model involves investing in the privately negotiated debt and equity securities of small and middle-market companies. Therefore, PhenixFIN's "customers" are the companies it provides financing to through various types of loans and, at times, equity participation.

Given the nature of its investments in "privately negotiated debt and equity securities" and its target of "small and middle market companies" for "private debt transactions," its portfolio companies are typically private entities. As such, PhenixFIN does not have major customers that are publicly traded companies, nor does it typically disclose specific names of individual private portfolio companies as "major customers" in the traditional sense, as its portfolio of investments changes over time.

Therefore, we cannot list specific customer company names or their public symbols.

David Lorber, Chairman & Chief Executive Officer

Mr. Lorber is the Chairman and Chief Executive Officer of PhenixFIN Corporation. He is a Co-Founder of FrontFour Capital Group LLC, an investment adviser, and has served as a Portfolio Manager since January 2007. He is also a Co-Founder of FrontFour Capital Corp., another investment adviser, and has been a Principal since January 2011. Previously, Mr. Lorber was a Senior Investment Analyst at Pirate Capital LLC, a hedge fund, from 2003 to 2006, and an Analyst at Vantis Capital Management LLC. He has served as a Director of ECC Capital Corporation and as an Independent Director at GSR II Meteora Acquisition Corp.

Ellida McMillan, Chief Financial Officer & Principal Accounting Officer

Ms. McMillan is the Chief Financial Officer of PhenixFIN. Prior to PhenixFIN, she served as Chief Financial Officer and Chief Operating Officer of Alcentra Capital Corporation, a NASDAQ-traded business development company (BDC), from April 2017 through February 2020. Before that, she served as Chief Accounting Officer, Treasurer, and Secretary of Alcentra Capital starting in November 2013. At Alcentra, she was responsible for building the company's financial and operating infrastructure, overseeing its IPO and initial NASDAQ listing, and assisting in corporate mergers & acquisitions (M&A) and strategic processes involving the BDC.

Chris Cannellos, Controller

Mr. Cannellos is the Controller of PhenixFIN. Before joining PhenixFIN, he worked as a Senior Vice President at Cantor Fitzgerald. He possesses 14 years of experience in both public and private sectors, with 10 years within the financial services industry. Mr. Cannellos holds a B.S. in Accounting from Boston College.

Ryan Phalen, Managing Director

Mr. Phalen is a member of the investment team at PhenixFIN, where he is primarily responsible for sourcing, underwriting, executing, monitoring, and exiting investments. From 2007 until 2020, prior to PhenixFIN, Mr. Phalen was a Director at Ironwood Capital, a lower middle market mezzanine firm. During his tenure there, he co-led mezzanine and equity investments in 14 platforms and played key roles in underwriting, monitoring, and exit strategies for seven additional portfolio companies. He is experienced in all aspects of deal execution, portfolio monitoring, and institutional fund management. Mr. Phalen earned his MBA from the University of Connecticut in 2018 and a B.S. in Finance from the University of Connecticut in 2006.

Ben Tilewick, Senior Investment Analyst

Mr. Tilewick is a Senior Investment Analyst at PhenixFIN. Prior to this role, he was an Analyst within the Portfolio Management Group at Credit Suisse, where his focus was on high yield companies in the broadly syndicated loan market.

• Credit Risk and Risk of Defaults on Debt Investments: PhenixFIN's business model involves lending to small and middle-market companies, which typically carry higher credit risk compared to larger, more established entities. These companies may have less financial flexibility and fewer resources to navigate economic challenges or operational issues, increasing the likelihood of defaults on their debt obligations. A significant credit risk is associated with the company's debt/loan investments in portfolio companies, where these companies may not pay interest and/or principal, potentially leading to the entire investment being lost. The types of companies BDCs invest in may be more prone to defaulting on their loans or going out of business, which can undermine overall returns.
• Economic Sensitivity and Downturns: PhenixFIN's performance is highly sensitive to broader economic conditions. Economic pullbacks or recessions can significantly impact its portfolio companies, leading to increased defaults, reduced demand for new financing, and challenges in valuing or exiting investments. Market disruptions and economic uncertainty can adversely affect investment yields and increase overall risks for the company.
• Illiquidity of Investments and Valuation Challenges: The firm invests in privately negotiated debt and equity securities, which are inherently illiquid compared to publicly traded assets. This illiquidity can make it difficult to sell investments quickly or at favorable prices, especially during periods of market stress. Valuing these private, often non-investment grade, investments can also be subjective and challenging due to a lack of public disclosure and market comparables, potentially impacting the accuracy of PhenixFIN's reported net asset value (NAV).

PhenixFIN Corporation (symbol: PFX) operates within the North American private debt and private equity markets, targeting small and middle-market companies. The addressable markets for its main products and services, which are privately negotiated debt and equity securities, can be characterized as follows:

Private Credit Market (North America)

The North American direct lending market, a significant component of private credit where PhenixFIN actively invests, had total assets under management (AUM) of approximately $644 billion by year-end 2025. This market is predominantly focused on middle-market borrowers, with typical deal sizes ranging from US$20 million to US$200 million. More broadly, the U.S. private credit market was estimated at roughly $1.3 trillion in 2026 and is expected to continue expanding. Some estimates suggest the global private credit market, of which North America holds the largest share, was approximately $1.67 trillion in 2025 and is projected to reach $2.9 trillion by 2030.

Private Equity Market (United States)

In the United States, the private equity market specifically targeting the middle market saw deal value climb to $410.7 billion across an estimated 4,018 transactions in 2025. The overall United States Private Equity Market was valued at $475.08 billion in 2024 and is projected to grow to $860.39 billion by 2030. North America, as a whole, represented the largest share of the global private equity market, which was valued at $6,749.85 billion in 2025.

Expected Drivers of Future Revenue Growth for PhenixFIN (PFX)

PhenixFIN Corporation (PFX) is expected to drive future revenue growth over the next 2-3 years through several key strategies centered around its investment activities and portfolio management:

1. Growth and Origination of Investment Portfolio: PhenixFIN actively seeks to increase the size and scope of its investment portfolio by originating new privately negotiated debt and equity securities in small and middle-market companies. The company has demonstrated a consistent increase in its investment portfolio's fair value, growing to $302.3 million across 36 portfolio companies as of the fourth fiscal quarter of 2025. This growth is further supported by an upsized credit facility, which provides increased capacity for new investment opportunities.
2. Maintenance or Improvement of Weighted Average Yields on Investments: A significant portion of PhenixFIN's revenue is derived from interest and dividend income from its investments. The company has consistently reported high weighted average yields on its debt and other income-producing investments, such as 12.8% in the fourth fiscal quarter of 2025. Sustaining or improving these yields on an expanding portfolio will directly contribute to higher revenue.
3. Strategic Acquisitions and Expansion into New Revenue-Generating Businesses: PhenixFIN has shown a strategic intent to expand its revenue base through acquisitions. A notable example is the acquisition of approximately 80% equity in The National Security Group, Inc., an Alabama-based insurance holding company, completed on October 1, 2024. Such strategic moves into controlled businesses are anticipated to diversify and add new, stable income streams beyond traditional lending activities.
4. Active and Opportunistic Portfolio Management: The firm's demonstrated agility in managing its investment portfolio, including the opportunistic sale of positions when the investment outlook changes and the monetization of legacy investments, allows for the continuous reallocation of capital into more promising, higher-yielding assets. This proactive approach aims to optimize the portfolio for maximum income generation and capital appreciation, thereby driving future revenue.