OFS Capital is a Business Development Company (BDC) that lends to U.S. middle-market companies — typically private equity-backed or owner-operated businesses with revenues between $15M and $300M and EBITDA between $5M and $50M. The core product is senior secured debt, primarily first lien floating-rate loans tied to SOFR, used by borrowers to fund leveraged buyouts, acquisitions, and recapitalizations. OFS Capital is externally managed by OFS Advisor, a subsidiary of OFSAM, a Chicago-based credit platform with approximately $4.1B in AUM and a 25+ year track record. OFS Capital's portfolio has three components: senior secured loans (~70% of the portfolio), CLO equity and mezzanine debt (~24%), and minority equity co-investments (~7%). OFS Capital earns interest income on loans, distributions from CLO holdings, and occasionally gains on equity positions. The company borrows to fund investments, so earnings are sensitive to interest rates, leverage levels, and credit quality. OFS Capital pays OFS Advisor a 1.75% base management fee on total assets and an incentive fee above a 2.0% quarterly hurdle rate. As a regulated investment company (RIC), OFS Capital must distribute substantially all of its income, limiting retained capital. Near-term management focus has shifted toward balance sheet defense: reducing leverage, refinancing near-term debt maturities, and monetizing a large equity stake in Pfanstiehl Holdings, a pharma ingredient manufacturer that grew from a $200K investment in 2014 to roughly $78.5M in fair value.