For the quarter ended June 30, 2010, we recorded net investment income of approximately $6.3 million, or approximately $0.24 per share, net unrealized appreciation on investments of approximately $2.1 million and net realized gains on investments of approximately $1.2 million. In total, we had a net increase in net assets resulting from operations of approximately $0.36 per share for the second quarter.

Total investment income for the second quarter of 2010 amounted to approximately $8.7 million, up approximately 77.4% from the second quarter of 2009 due largely to a higher return on our investment portfolio of approximately $7.8 million and distribution income from our securitization vehicle investments of approximately $950,000.

Expenses for the second quarter of 2010 were approximately $2.4 million. The primary components of our expenses were approximately $1.7 million in investment advisory fees, $239,000 in compensation expense and approximately $166,000 in professional fees for valuation, legal and auditing services.

During the quarter ended June 30, 2010, we recorded net unrealized appreciation of approximately $2.1 million, comprised of $9.5 million in gross unrealized appreciation, $7.0 million in gross unrealized depreciation and approximately $0.4 million relating to the reversal of prior period net unrealized appreciation upon the realization events associated with certain investments.

For the quarter ended June 30, 2010, we had net realized gains on investments of approximately $1.2 million due largely to gains associated with the repayment of our debt investment held in Stratus Technologies, Inc. of approximately $0.8 million and the repayment of our debt investment in Punch Software, LLC of approximately $0.4 million.

Our Board of Directors has declared a distribution of $0.22 per share for the third quarter of 2010.

Payable Date: September 30, 2010

Record Date: September 10, 2010

During the second quarter, we deployed approximately $13.5 million in six new investments and $1.5 million in an existing investment. These investments are comprised of notes and collateralized loan obligation positions with a face amount of approximately $23.9 million for an aggregate discount of approximately 37.2% from par.

During the second quarter of 2010, the Company invested approximately $9.9 million in the junior capital of five different collateralized loan obligation (“CLO”) vehicles, bringing our total cash investment in this strategy to approximately $30.2 million in 14 different CLO investments. For the quarter ending June 30, 2010, we received approximately $524,000 in interest payments, $746,000 in principal payments at par and $950,000 in CLO equity distributions. In total, since we began investing in this asset class, we received approximately $975,000 in interest payments, $1.1 million in principal payments at par and $1.7 million in CLO equity distributions.

Portfolio realizations amounted to $17.2 million during the second quarter of 2010 (which had previously been carried at an aggregate book value of $16.2 million).

At June 30, 2010, the weighted average yield of our debt investments (excluding cash equivalents and assuming no interest income from any investments on non-accrual status) was approximately 13.0%, up from approximately 10.8% at March 31, 2010.

During the second quarter, no additional loans were placed on non-accrual status.

At June 30, 2010, the weighted average yield of our debt investments (excluding cash equivalents and excluding our investment on non-accrual status as of June 30, 2010) was approximately 13.9%, up from approximately 12.8% at March 31, 2010.

At June 30, 2010, net asset value per share was $9.03 compared with the net asset value per share at June 30, 2009 of $7.66 and at December 31, 2009 of $8.36.