FIDUS INVESTMENT Corp Q4 FY2024 earnings call

• Ed started by reviewing fourth quarter portfolio performance and 2025 outlook. Portfolio grew 14% to $1.1 billion fair value. Deal flow was reasonable but not robust. Sponsor relationships, investment experience, and industry knowledge in lower middle market differentiate Fidus. - Shelby covered fourth quarter financial results: total investment income $37.5 million (down $0.9 million from Q3), total expenses $18.8 million (up $1.8 million from Q3), net investment income per share $0.55 in Q4 vs $0.64 in Q3, adjusted NII $0.54 per share in Q4 vs $0.61 in Q3. Liquidity included cash $57.2 million, line of credit availability $95 million, available SBA debentures $23.5 million, total liquidity ~$175.7 million. Portfolio stats: fair value $1.1 billion, average portfolio company investment cost $12.4 million, equity in ~85.7% of portfolio companies, weighted average effective yield on debt investments 13.3% in Q4 vs 13.8% in Q3.

As of December 31, 2024, portfolio fair value was $1.1 billion, up 14% from year - end 2023. Debt portfolio totaled $944.5 million (76% first lien investments), equity portfolio was $146 million (13.4% of total). Fourth quarter adjusted net investment income was $18.4 million. Originations totaled $120.3 million, net investments $115.5 million, proceeds from repayments and realizations $122.8 million. Debt investments under management increased with yield decline due to SOFR drop. Equity portfolio delivered net realized gains. Net asset value was $655.7 million or $19.33 per share. Fourth quarter dividends were $0.61 per share; first quarter 2025 dividend is $0.54 per share.

• Intend to continue building portfolio methodically and disciplinedly in 2025 independent of M&A market strength. - Board declared first quarter 2025 dividend of $0.54 per share, payable March 27, 2025. - Target balance sheet leverage is one to one, comfortable with current leverage levels and can perform at these levels, will use debt and ATM program for growth as needed.

• Non - accruals on fair value basis for fourth quarter stayed under 1% of portfolio but 4.1% on cost basis. - Quantum IR Technologies added to non - accruals with fair value written down to zero due to series of company - specific negative events. - Uncertainties from tariffs and import goods could impact portfolio companies at margin level, though not significant and portfolio expected to weather storm.

Q: How do spreads evolve this year and scope for widening?

A: Ed expects yields to stay pretty stable, may have opportunities at higher rates where risks are perceived but probably not a lot of aggressive widening.

Q: About Quantum, can you take control and recoup value?

A: Ed says they have a call, are very active in the situation with all hands on deck.

Q: HealthFuse and MedShurant distributions: booked as income or gains and reflected in fair value?

A: Shelby says booked as return of capital and realized gains, Q4 fair value anticipated repayments in Q1.

Q: Target balance sheet leverage?

A: Ed says target is one to one.

Q: Thoughts on tariffs impact on portfolio?

A: Ed says some exposure but not significant, portfolio companies have pricing power to handle cost increases.

Q: Changed methodology in sectors for adding companies?

A: Ed says no change, focused on high free cash flow businesses with stable demand, average leverage ~4.25, reasonable level, loan to values ~41% this quarter