Exhibit 99.2

C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S

NEF Holdings, LLC and Subsidiaries

(A Limited Liability Company)

Years ended December 31, 2025 and December 31, 2024

With Independent Auditors’ Report

NEF Holdings, LLC and Subsidiaries

Consolidated Financial Statements

Years ended December 31, 2025 and December 31, 2024


Independent Auditors’ Report	1

Consolidated Balance Sheets	3
Consolidated Statements of Operations	4
Consolidated Statements of Comprehensive Income/(Loss)	5
Consolidated Statements of Changes in Members’ Capital	6
Consolidated Statements of Cash Flows	7
Notes to the Consolidated Financial Statements	8

Independent Auditors' Report

To the Board of Managers and Members of NEF Holdings, LLC and Subsidiaries

Opinion

We have audited the consolidated financial statements of NEF Holdings, LLC and Subsidiaries (the Company), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of operations, comprehensive income/(loss), changes in members’ capital, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with U.S. GAAP, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS, we:

•

Exercise professional judgment and maintain professional skepticism throughout the audit.

•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

•

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit.

Philadelphia, Pennsylvania

February 10, 2026

NEF Holdings, LLC and Subsidiaries

Consolidated Balance Sheets

At December 31, 2025 and December 31, 2024

(In Thousands)


	2025		2024
Assets
Cash	$	5,749	$	6,252
Restricted cash		72		72
Financing receivables, net		299,753		324,939
Equipment off lease, net of impairment		-		899
Fixed assets, net		190		225
Goodwill		29,832		29,832
Other assets		2,689		4,039
Total assets	$	338,285	$	366,258
Liabilities and Members’ Capital
Liabilities:
Senior secured credit facility, net	$	236,683	$	260,483
Loans from affiliate		8,500		13,582
Accounts payable and accrued expenses		1,651		2,260
Good faith deposits		600		661
Other liabilities		2,607		3,434
Total liabilities		250,041		280,420
Members’ capital:
Members’ capital		88,244		85,838
Total members’ capital		88,244		85,838
Total liabilities & members’ capital	$	338,285	$	366,258

See accompanying notes to the consolidated financial statements.

NEF Holdings, LLC and Subsidiaries

Consolidated Statements of Operations

For the Years ended December 31, 2025 and December 31, 2024

(In Thousands)


	2025			2024
Net operating income:
Interest income	$	26,032		$	19,917
Interest expense		17,056			14,774
Net interest income		8,976			5,143

Other income		2,569			2,099
Net operating income		11,545			7,242
(Recovery)/provision for credit losses and impairments of equipment off lease		(446	)		3,354
Net operating income after recoveries, provisions and impairments		11,991			3,888

Expenses:
Compensation and benefits		5,893			9,639
General and administrative expenses		3,377			3,486
Lease and loan restructuring costs		49			226
Depreciation and amortization		67			71
Total expenses		9,386			13,422

Net income/(loss)	$	2,605		$	(9,534	)

See accompanying notes to the consolidated financial statements.

NEF Holdings, LLC and Subsidiaries Consolidated

Statements of Comprehensive Income/(Loss)

For the Years ended December 31, 2025 and December 31, 2024

(In Thousands)


	2025			2024
Net income/(loss)	$	2,605		$	(9,534	)
Other comprehensive income/(loss):
Derivative instruments designated and qualifying as cash flow hedges:
Realized holding (loss) arising during the year		(10	)		(262	)
Reclassification adjustment for (losses) included in net income/(loss)		-			(147	)
Total other comprehensive income/(loss)		(10	)		(409	)
Total comprehensive income/(loss)	$	2,595		$	(9,943	)

See accompanying notes to the consolidated financial statements.

NEF Holdings, LLC and Subsidiaries Consolidated

Statements of Changes in Members’ Capital

For the Years ended December 31, 2025 and December 31, 2024

(In Thousands)


Members’ capital at December 31, 2023	$	95,822
Capital distributions		(41	)
Other comprehensive income/(loss)		(409	)
Net income/(loss)		(9,534	)
Members’ capital at December 31, 2024		85,838
Capital distributions		(189	)
Other comprehensive income/(loss)		(10	)
Net income/(loss)		2,605
Members’ capital at December 31, 2025	$	88,244

See accompanying notes to the consolidated financial statements.

NEF Holdings, LLC and Subsidiaries

Consolidated Statements of Cash Flows

For the Years ended December 31, 2025 and December 31, 2024

(In Thousands)


	2025			2024
Cash flows from operating activities
Net income/(loss)	$	2,605		$	(9,534	)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Recovery)/provision for credit losses and impairments of equipment off lease		(446	)		3,354
Depreciation and amortization		67			71
Amortization of deferred financing costs		917			878
Amortization of upfront fees received and initial direct costs paid		168			322
Write off of software costs		575			-
Amortization of software as a service implementation costs		-			64
Net (gains)/losses on sales of equipment off lease		953			(119	)
Change in interest rate derivative fair value		-			43
Changes in operating assets and liabilities:
(Increase)/Decrease in other assets		274			171
(Increase)/Decrease in interest receivable		542			(1,249	)
Increase/(Decrease) in interest payable		(445	)		618
Increase/(Decrease) in accounts payable and accrued expenses		(609	)		262
Increase/(Decrease) in good faith deposits		(61	)		143
Increase/(Decrease) in other liabilities		(496	)		205
Net cash provided by/(used in) operating activities		4,044			(4,771	)
Cash flows from investing activities
Investments in secured loans and direct finance leases		(125,817	)		(197,948	)
Collections of principal on secured loans and direct finance leases		162,849			74,565
Purchase of financing receivables from affiliate		(13,423	)		(2,231	)
Initial direct costs paid		(688	)		(349	)
Proceeds from sales of equipment off lease		2,108			3,493
Cash flows from (purchases)/sales of fixed assets		(32	)		(18	)
Net cash provided by/(used in) investing activities		24,997			(122,488	)
Cash flows from financing activities
Borrowings on credit facility and loans from affiliate		116,300			347,795
Repayments on credit facility and loans from affiliate		(144,658	)		(225,344	)
Payment of credit facility closing fees		(996	)		(2,687	)
Capital distributions		(189	)		(41	)
Net cash provided by/(used in) financing activities		(29,543	)		119,723
Net increase/(decrease) in cash and restricted cash		(503	)		(7,536	)
Cash and restricted cash at the beginning of period		6,324			13,860
Cash and restricted cash at the end of period	$	5,821		$	6,324
Supplemental disclosures of cash flow information
Interest paid	$	16,584		$	13,235

See accompanying notes to the consolidated financial statements

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements

For the Years ended December 31, 2025 and December 31, 2024

(In Thousands)

Organization and Business

NEF Holdings, Inc. was organized on June 7, 2013 as a Delaware corporation and commenced its operations in June 2013. Effective January 1, 2014, NEF Holdings, Inc. converted from a corporation to a limited liability company (“LLC”), NEF Holdings, LLC (“NEF Holdings”), pursuant to Section 18-214 of the Limited Liability Act in the State of Delaware. Subsequent to the close of business on July 31, 2017, NEF Holdings was acquired by SLR Investment Corp., formerly Solar Capital Ltd. (“SLRC”).

As of December 31, 2025 and December 31, 2024, NEF Holdings had four wholly-owned subsidiaries: Nations Fund I, LLC (“Fund I”), Nations Equipment Finance, LLC (“NEF”), Equipment Operating Leases, LLC (“EOL”), and Loyer Capital LLC (“Loyer Capital”) (collectively, the “Company”). The Company is headquartered in Wilton, Connecticut.

Nations Fund I, Inc. was organized on September 17, 2010 as a Delaware corporation. Effective January 1, 2014, Nations Fund I, Inc. converted from a corporation to a LLC, Nations Fund I, LLC, pursuant to Section 18-214 of the Limited Liability Act in the State of Delaware. Fund I is a commercial equipment finance company that provides term loans and leases primarily to middle market and privately held companies. Fund I focuses on direct origination of loans and equipment leases secured by equipment collateral, such as trailers, trucks, transportation, food processing, essential use technology, and construction equipment

NEF was organized as a LLC under the laws of the State of Delaware and commenced operations on August 24, 2010. NEF, doing business as SLR Equipment Finance, serves as the investment manager for the Company. Services provided by NEF include, among other things, identifying, structuring and negotiating transactions, monitoring, advising and managing investments, exercising control rights, options or warrants, liquidating investments, cash management, accounting, tax, compliance and legal services.

NEF Investments, LLC, a wholly owned subsidiary of NEF Holdings, was organized as a Delaware LLC on January 22, 2018. On April 18, 2018, NEF Investments’ LLC agreement was amended which changed the company’s name to Equipment Operating Leases, LLC. EOL is a commercial equipment finance company that provides term loans and leases primarily to middle market and privately held companies.

Loyer Capital was organized as a LLC under the laws of the State of Delaware and commenced operations in May 2019. Loyer Capital is a commercial equipment finance company that provides term loans and leases primarily to middle market and privately held companies.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These consolidated financial statements include the accounts of NEF Holdings and its wholly owned subsidiaries, Fund I, NEF, EOL, and Loyer Capital. All significant intercompany balances and transactions are eliminated in consolidation. Certain amounts in the prior period financial statements have been reclassified to conform to the current year’s presentation.

Use of Estimates

The presentation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that impact the amounts reported in the consolidated financial statements and accompanying notes. Such estimates and assumptions are subject to change in the future as additional information becomes available or as circumstances are modified. Actual results could differ materially from these estimates. Management’s most significant estimates and assumptions are used in estimating an allowance for credit losses on financing receivables, impairments of equipment off lease, fair values of unguaranteed residual values, and goodwill.

Cash

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash includes all deposits held at banks. Deposits in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) are exposed to loss in the event of non-performance by the institution. The Company has had cash deposits in excess of the FDIC insurance coverage and has not experienced any losses on such accounts.

At December 31, 2025 and December 31, 2024, the Company’s cash balance totaled $5,821, and $6,324, respectively. Included in the Company’s cash balance as of December 31, 2025 and December 31, 2024 is restricted cash of $72, which is maintained in connection with the lease of the Company’s office space.

Financing Receivables

Included in financing receivables in the consolidated balance sheets are the Company’s net investments in direct financing leases and secured loans.

Net investment in direct finance leases is reported net of unearned income, deferred non-refundable fees and initial direct costs associated with their origination, and inclusive of guaranteed and unguaranteed residual values. Direct finance leases are usually long-term in nature, typically ranging for a period of three to seven years and include either a nominal or fair market value purchase option at the end of the lease term. Non-refundable fees received and initial direct costs incurred associated with the origination of direct finance leases are deferred and are recognized as an adjustment to interest income over the contractual life of the direct finance leases using the interest method.

Secured loans are reported at the principal amount outstanding, net of non-refundable fees, initial direct costs and accrued interest. These fees and initial direct costs are deferred and recognized as an adjustment to interest income over the contractual life of the loans using the interest method.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Summary of Significant Accounting Policies (continued)

Income Recognition

The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the revenue model is for an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. While this guidance replaced most existing revenue recognition guidance in U.S. GAAP, ASC 606 is not applicable to financial instruments and, therefore, does not impact most of the Company’s revenues.

For direct finance leases, the difference between the cost of the equipment and the total finance lease receivable plus, where applicable, the unguaranteed or guaranteed residual value is recorded as unearned income. Unearned income is amortized as earned income over the term of the transaction using the interest method. For the years ended December 31, 2025 and December 31, 2024, interest income from direct financing leases totaled $11,933 and $11,888, respectively, which is included in interest income in the consolidated statements of operations. For secured loans, interest income is recorded on the accrual basis in accordance with the terms of the respective loan. For the years ended December 31, 2025 and December 31, 2024, interest income from secured loans totaled $14,099 and $8,029, respectively, which is included in interest income in the consolidated statements of operations.

The Company’s revenue recognition pattern for revenue streams within the scope of ASC 606 include fees for providing administrative and collateral monitoring services, which are earned ratably over the period in which the services are provided. Such revenues are recognized when evidence of an arrangement exists, the performance obligations are satisfied, collections are probable and the price is fixed or determinable.

Other Income

Amounts in other income in the consolidated statements of operations primarily include gains and losses on sales of equipment, fees charged for early terminations of financing arrangements, other miscellaneous fees earned in connection with the administration of such financing arrangements and net impacts of foreign currency translation.

Fixed Assets

Fixed assets consist of furniture and fixtures, software, computers, leasehold improvements, and office equipment, and are stated at cost less accumulated depreciation and amortization. Expenditure for repairs and maintenance that do not extend the useful life of the assets are expensed as incurred and are included in general and administrative expenses in the Company’s consolidated statements of operations.

Depreciation and amortization of fixed assets are calculated using the straight-line method over their respective useful lives and recorded in depreciation and amortization in the consolidated statements of operations.


	Useful Life (Years)
Furniture and fixtures	7
Office equipment	5
Computers	3
Software	Lesser of 5 years or license period
Leasehold improvements	Lesser of the useful life of the asset or lease term

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Summary of Significant Accounting Policies (continued)

Good Faith Deposits

Good faith deposits represent cash received from the Company’s customers, when the proposal for a potential transaction is signed. These deposits are used to pay expenses such as third-party appraisals, document fees and travel and related costs incurred by the Company in connection with the origination of the transaction. If the deposit exceeds the expenses incurred by the Company, the excess amount may be refundable to the customer. If the expenses incurred exceed the deposits received, the Company’s customers are liable for the overage. Such overages are included in other assets on the consolidated balance sheets. In the event the Company approves a transaction with a customer and the customer elects not to pursue the transaction, the Company recognizes any remaining good faith deposit into income, as allowed by the agreed upon terms of the signed proposal. Such amounts are included in other income in the consolidated statements of operations.

In certain instances, the Company incurs costs to restructure financing receivables, which are in excess of the customer's good faith deposit, such as legal fees and other expenses associated with the repossession and liquidation of equipment. If these costs are deemed not collectable from the Company’s customers, then such costs are expensed and recorded as lease and loan restructuring costs on the consolidated statements of operations.

Allowance for Credit Losses on Financing Receivables

In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13 – Financial Instruments – Credit Losses. This ASU requires companies to broaden the information considered in developing its expected credit loss estimates on financing receivables measured either individually or collectively. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses, which delayed the effective date of ASU 2016-13 and made the adoption effective for the Company for the fiscal year beginning after December 15, 2022. The Company adopted this guidance on January 1, 2023 using the modified retrospective approach, which did not have a material impact on its consolidated balance sheets and consolidated statements of operations, however expanded the disclosure requirements surrounding this topic.

The Company maintains an allowance for credit losses on financing receivables (which includes accrued interest in secured loans) at a level sufficient to absorb credit losses expected to arise over the life of the financing receivables, as of the date of the consolidated financial statements. The Company’s financing receivables are all secured by the underlying collateral. Additionally, the Company looks to three forms of repayment in analyzing the risk of loss associated with underwriting an individual transaction, namely, cash flows of the obligor’s existing operations, the value of the underlying collateral securing the financing receivable and where applicable, the potential for repayment from a personal or corporate guarantor.

In determining its allowance for credit losses on financing receivables, the Company considers numerous factors including forward looking industry benchmarks and equipment trends, type of financing receivable, credit quality of its customer, historical loss rates, collateral coverage, and remaining term to maturity of the financing arrangement, which are reviewed and updated, as appropriate, on an ongoing basis. The Company’s application of its credit loss policy is applied on an individual transaction basis.

Individually identified non-performing financing receivables are measured based on the specific circumstances of the transaction and a specific allowance for credit loss is established, if necessary. The specific allowance is measured based on a comparison of the recorded carrying value of the financing receivables to the present value of the financing receivable’s expected cash flow using the transaction internal rate of return, the financing receivable’s estimated market price, or the estimated fair value of the underlying collateral, if the financing receivable is collateral dependent.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Summary of Significant Accounting Policies (continued)

Allowance for Credit Losses on Financing Receivables (continued)

Uncollectible financing receivables are charged off against the allowance at the earlier of either the substantial completion of the liquidation of assets securing the financing receivable, or when senior management deems the financing receivable to be permanently impaired. The Company classifies a financing receivable as delinquent when it is overdue by more than 60 days. As of December 31, 2025, financing receivables with an outstanding balance of $1,055, $2,135, and $5,013 were between 61-90 days past due, 91-120 days past due and greater than 120 days past due, respectively. As of December 31, 2024, financing receivables with an outstanding balance of $16,708, $0, and $0 were between 61-90 days past due, 91-120 days past due and greater than 120 days past due, respectively.

The Company assessed that there is a secured loan where the borrower is experiencing financing difficulty. We expect that the repayment will be provided substantially through cash flow from operations or sale of the collateral. At December 31, 2025 and December 31, 2024, the outstanding balance on the secured loan that has been delinquent in its payments is $15,587 and $17,883, respectively. While the Company continues to engage with the borrower for repayment, it has determined, based on third party appraisals, that the underlying collateral is sufficient to cover the total of the secured loan in the event the customer cannot repay.

The net book value of financing receivables by year of origination at December 31, 2025 and December 31, 2024 were as follows:


Net Book Value of Financing Receivables by Year of Origination

At December 31, 2025
	2025		2024		2023		2022		Prior		Total
Financing Receivables, gross	$	99,564	$	111,622	$	55,125	$	10,190	$	28,217		$	304,717
Allowance for credit losses													(4,964	)
Financing Receivables, net												$	299,753


At December 31, 2024
	2024		2023		2022		2021		Prior		Total
Financing Receivables, gross	$	181,662	$	82,736	$	18,058	$	34,419	$	13,633		$	330,508
Allowance for credit losses													(5,569	)
Financing Receivables, net												$	324,939

Non-Accrual Financing Receivables

Income recognition is generally suspended for financing receivables after 90 days of non-payment, or if full recovery becomes doubtful based on the assessment by the Company. Income recognition is resumed when financing receivables are less than 90 days past due. At December 31, 2025 and December 31, 2024, financing receivables with an outstanding balance of $22,735and $17,883, respectively, were on non-accrual of income.

Equipment on Lease

Leasing equipment is comprised of equipment under operating leases. Leasing equipment is recorded at cost and depreciated on a straight-line basis over the estimated useful life of the equipment. Income is recorded on a straight-line basis over the term of the lease which is included in interest income in the consolidated statements of operations.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Summary of Significant Accounting Policies (continued)

Equipment on Lease (continued)

The estimated useful lives and residual values of the Company’s leasing equipment are based on independent third-party appraisals and management’s judgment. The Company reviews its depreciation policies on a regular basis to determine whether changes have taken place that would suggest that a change in its depreciation policies, useful lives of its equipment or the assigned residual values is warranted. At December 31, 2025 and December 31, 2024 the Company had no leasing equipment under operating leases.

Leasing equipment is tested for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recovered. Key indicators of impairment on leasing equipment include, among other factors, a sustained decrease in operating profitability, a sustained decrease in utilization, or indications of technological obsolescence.

Equipment off Lease

Equipment off lease arises when the Company repossesses collateral that secured a financing receivable in a customer default scenario. Such equipment is intended to be sold and is classified as assets held for sale, in accordance with the provisions of ASC 360, Property, Plant & Equipment. At the time of repossession, the financing receivable is transferred to equipment off lease at the lower of cost or fair value. At December 31, 2025 and December 31, 2024, equipment off lease totaled $0 and $899, respectively, in the consolidated balance sheets.

A review for impairment of equipment off lease is performed at least annually or when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the years ended December 31, 2025 and December 31, 2024, the Company recorded impairment charges of $160 and $1,198, respectively, which are included in provision for credit losses and impairments of equipment off lease on the consolidated statements of operations.

Derivative Instruments

The Company manages exposure to interest rates through the use of interest rate caps and zero cost interest rate collars traded in the over-the-counter markets with other financial institutions. The Company does not enter into derivative financial instruments for speculative purposes. Derivative instruments are recognized at fair value and included in other liabilities in the consolidated balance sheets.

The Company designated its derivative instruments as highly effective hedges. On the date the derivative contract is entered into, the Company formally documents the relationships between the hedging instrument and the hedged item, as well as its risk management objective and strategy for undertaking various hedge transactions. Hedge effectiveness is measured at the hedge’s inception and, on an on-going basis, to determine whether the derivatives are highly effective in offsetting the changes in cash flows of the hedged item.

At December 31, 2025 and December 31, 2024, the Company held one and two interest rate collars that were deemed highly effective and had a notional value totaling $250,000 and $190,000 and had a fair value of ($10) and $1, respectively.

In 2025 and 2024, there were no material changes in fair value of the zero cost interest rate collars. Changes in fair values of these derivative instruments, which were deemed highly effective during the years ended December 31, 2025 and December 31, 2024, totaled ($10) and ($262), respectively, and are included in other comprehensive income, offset by reclassification gains/(losses) into earnings of $0 and ($147), respectively. Reclassifications into earnings are included in interest expense in the consolidated statements of operations.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Summary of Significant Accounting Policies Basis (continued)

Debt

Senior secured credit facility represents the Company’s principal balance under its long-term revolver, which is carried at amortized cost, along with the related accrued interest payable, net of unamortized deferred financing costs.

Loans from affiliates represent the Company’s unpaid principal balance on term loans, along with the related accrued interest payable to SLRC, a related party, as described in note 1. As of December 31, 2025, the Company had an outstanding principal payable to SLRC of $8,500. As of December 31, 2024, the principal outstanding payable to SLRC was $3,000 and it had $10,384 outstanding to other affiliates. During the year ended December 31, 2025, the Company fully extinguished outstanding affiliate loan balances of $10,384.

On December 1, 2024, the Company entered into a $6,000 revolver facility with SLRC with an original maturity date of December 1, 2025. The facility has an interest rate of 8.5% per annum, payable at the end of each quarter and at December 31, 2024, the Company had drawn down $3,000 of the $6,000 commitment.

On July 2, 2025, the Company amended the revolving credit facility with SLRC to increase the total commitment from $6,000 to $18,000. The Company extended its maturity date to December 31, 2028. The facility has an interest rate of 8.5% per annum, payable at the end of each quarter and at December 31, 2025, the Company had drawn down $8,500 of the $18,000 commitment.

Deferred Financing Costs

Deferred financing costs represent fees and other incremental costs incurred in connection with the financing of the Company’s senior secured credit facilities. Such costs are amortized using the straight-line method into earnings over the contractual term of the facilities. The unamortized balance of such costs is included as a reduction to the senior secured credit facility balance. On January 31, 2024, the Company entered into a new credit facility (see note 6), the “2024 Facility” and incurred closing fees of $2,687. On November 26, 2025, the Company renewed the 2024 Facility, now the “Revised Facility” and incurred an additional $996 in closing fees.

Contingencies and Commitments

The Company may be subject to various legal proceedings, claims, and litigation, either asserted or unasserted that arise in the ordinary course of business. The Company records accruals for contingent losses when such losses are probable and reasonably estimable. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Legal fees are expensed as incurred.

Financial Asset Transfers

The Company accounts for transfers of financial assets under FASB ASC 860, Transfers and Servicing, utilizing a control oriented, financial components approach to financial asset transfer transactions whereby the Company:

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Summary of Significant Accounting Policies (continued)

Financial Asset Transfers (Continued)

(1) recognizes the financial and servicing assets it controls and the liabilities it has incurred; (2) derecognizes financial assets when control has been surrendered; and (3) derecognizes liabilities once they are extinguished. Control is considered to have been surrendered only if: (i) the transferred assets have been isolated from the Company and its creditors, even in the event of bankruptcy or other receivership; (ii) the purchaser has the right to pledge or exchange the transferred assets, or, is a qualifying special purpose entity (as defined) and the holders of beneficial interests in that entity have the right to pledge or exchange those interests; and (iii) the Company does not maintain effective control over the transferred assets through an agreement which both entitles and obligates it to repurchase or redeem those assets prior to maturity, or through an agreement which both entitles or obligates it to repurchase or redeem those assets if they were not readily obtainable elsewhere. If any of these conditions are not met, the Company accounts for the transfer as a secured borrowing.

Foreign Currencies

Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the date of the consolidated balance sheets. Income and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process, which totaled ($3) and ($11) for the years ended December 31, 2025 and December 31, 2024, respectively, are recorded in other income in the consolidated statements of operations. At December 31, 2025 and December 31, 2024, the Company had cash, financing receivables and debt (if applicable) denominated in the Canadian dollars.

Income Taxes

The Company is a LLC and has elected to be taxed as a partnership. Accordingly, the Company is not subject to federal or state income taxes. Taxable income, losses and deductions flow through to the Company’s members.

Fair Value Measurement

Fair value is defined as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction at the measurement date. In determining fair value of financial instruments and intangibles, the Company uses various valuation approaches, which utilize certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk to the valuation technique. The inputs can be readily observable, market corroborated or generally unobservable internal inputs. The Company utilizes valuation techniques that rely on both observable and unobservable inputs.

Leases

The Company accounts for leases in accordance with ASC 842, Leases. Included in other assets and other liabilities on the consolidated balance sheets As of December 31, 2025 and December 31, 2024, are right of use assets and corresponding lease obligations, associated with the Company’s office spaces, of $2,293 and $2,633, respectively. The Company paid $401 and $393 for the years ended December 31, 2025 and December 31, 2024, respectively, for such leases. The Company’s aggregate scheduled remaining contractual payments under these leases are $409, $417, $425, $433, $442 and $336 for 2026, 2027, 2028, 2029, 2030 and thereafter, respectively.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Summary of Significant Accounting Policies (continued)

Goodwill

Goodwill represents the excess of consideration paid for the Company over the fair value of the related assets acquired and liabilities assumed from the acquisition of the Company on July 31, 2017, as discussed in note 1. The Company assesses goodwill for impairment, annually or more frequently if events or changes in circumstances occur, by comparing the carrying value to its fair value. If the fair value is less than the carrying value, an impairment charge is recorded in that period. Goodwill recognized in business combinations is assigned to the reporting units that are expected to benefit from the combination as of the acquisition date. Goodwill is not amortized; rather goodwill is tested annually for impairment or more frequently upon the occurrence of certain events or substantive changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the conclusion is supported that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not need to perform a quantitative impairment test. If the conclusion cannot be supported, or if the Company does not elect to do the qualitative assessment, then the Company will perform a quantitative assessment. If a quantitative goodwill impairment test is performed, the Company utilizes a combination of market and income valuation approaches. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the reporting unit is less than its carrying value. No impairment of goodwill resulted from the annual impairment assessment in 2025 or 2024.

Financing Receivables

Net investment in financing receivables consists of the following at December 31, 2025 and December 31, 2024:


	2025			2024
Finance lease receivables	$	151,700		$	151,080
Guaranteed residuals		9,595			9,741
Unguaranteed residuals		8,851			9,864
Unearned income		(24,125	)		(27,139	)
Deferred non-refundable fees collected		(8	)		(29	)
Deferred initial direct costs paid		646			803
Finance lease receivables, gross		146,659			144,320
Allowance for credit losses on direct finance leases		(2,371	)		(2,464	)
Total net investment in direct finance leases	$	144,288		$	141,856


	2025			2024
Secured loans, principal	$	156,445		$	184,689
Accrued interest receivable		964			1,506
Total secured loans, gross		157,409			186,195
Deferred non-refundable fees collected		(190	)		(767	)
Deferred initial direct costs paid		839			760
Secured loans, gross		158,058			186,188
Allowance for credit losses on secured loans		(2,593	)		(3,105	)
Total secured loans, net	$	155,465		$	183,083

Financing receivables (gross and net) is an aggregate of finance lease receivables and secured loans.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Financing Receivables (continued)

Aggregate scheduled payments, contractual maturities including guaranteed residuals and unguaranteed residuals by year on the fixed and floating rate secured loans and direct finance leases at December 31, 2025, are as follows:


	2026		2027		2028		2029		2030		Thereafter		Total
Secured loans:
Fixed Rate	$	61,170	$	36,863	$	20,481	$	13,745	$	3,408	$	1,394	$	137,061
Floating Rate		8,910		1,861		1,720		1,895		2,088		2,910		19,384
Direct Finance Leases		63,982		44,546		37,061		15,302		7,721		1,534		170,146
Total	$	134,062	$	83,270	$	59,262	$	30,942	$	13,217	$	5,838	$	326,591

Allowance for Credit Losses on Financing Receivables

Allowance for credit losses on financing receivables was as follows for the years ended:


	2025
	Direct Finance Leases			Secured Loans			Total
Balance at beginning of year	$	2,464		$	3105		$	5569
General (recovery)/provision for credit losses		(993	)		(1,585	)		(2,578	)
Specific provision for credit losses		900			1,072			1,972
Charge offs		‑			‑			‑
Foreign currency translation adjustments		‑			1			1
Balance at end of year	$	2,371		$	2,593		$	4,964

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Allowance for Credit Losses on Financing Receivables (continued)


	2024
	Direct Finance Leases		Secured Loans			Total
Balance at beginning of year		2,246		1,171		3,417
General provision for credit losses		218		1,938		2,156
Specific provision for credit losses		‑		‑		‑
Charge offs		‑		‑		‑
Foreign currency translation adjustments		‑		(4	)	(4	)
Balance at end of year		2,464		3,105		5,569

As of December 31, 2025 and December 31, 2024, the Company maintained a general allowance for credit losses of $2,992 and $5,569, respectively. As of December 31, 2025 and December 31, 2024, the Company maintained an allowance for credit losses on specifically identified accounts of $1,972 and $0 on financing receivables of $4,279 and $0, respectively. The Company has no material off balance sheet credit exposure as of December 31, 2025 and December 31, 2024, which would require additional allowances for credit losses.

Fixed Assets, net

At December 31, 2025 and December 31, 2024, fixed assets, net consists of the following:


	2025			2024
Leasehold improvements	$	153		$	153
Furniture and fixtures		141			141
Software		63			33
Office equipment		39			39
Computer Equipment		26			44
Fixed assets, gross		422			410
Accumulated depreciation		(232	)		(185	)
Fixed assets, net	$	190		$	225

Depreciation and amortization expense related to fixed assets totaled $67 and $71 for the years ended December 31, 2025 and December 31, 2024, respectively. For the years ending 2026, 2027, 2028 and thereafter, the Company will recognize annual amortization expenses related to software of $13, $11, $9 and $7, respectively.

Senior Secured Credit Facility

Senior secured credit facility consists of the following at December 31, 2025 and December 31, 2024:


	2025			2024
2024 senior secured credit facility, principal	$	237,500		$	260,974
Accrued interest payable		1,127			1,375
Unamortized deferred financing costs		(1,944	)		(1,866	)
Total senior secured credit facility, net	$	236,683		$	260,483

Fund I entered into a senior secured revolving credit facility (the “2024 Facility”) on January 31, 2024. The total commitment of the 2024 Facility is $350,000, in which the lender is the administrative agent with a commitment of $200,000, and a participating lender with a commitment of $150,000. The commitment termination date on the facility is January 2026. The facility was extended in November 2025 (the “Revised Facility”) for another three years. The facility has a revolving period for 2 years and an option to extend the termination date by another 12 months to November 2028.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Senior Secured Credit Facility (continued)

The 2024 Facility also consisted of two separate revolvers, one for U.S. dollars and one for Canadian dollars. At December 31, 2025, the amount drawn down on the 2024 Facility and the Revised Facility was USD $237,500 and CAD $0. The interest rate on the 2024 Facility is based on the Secured Overnight Financing Rate (“SOFR”) plus an applicable margin of 1.76% (includes a credit adjustment spread of 0.11%) for all USD borrowings. For all CAD borrowings, the interest rate is based on Canadian Overnight Repo Rate Average (“CORRA”) plus an applicable margin of 2.05% (includes a credit adjustment spread of 0.3%). The interest rate on the Revised Facility is also based on SOFR with an applicable margin of 1.65% for all USD borrowings. For all CAD borrowings, the interest rate is based on CORRA plus an applicable margin of 1.75%. During the year ended December 31, 2025, Fund I fully repaid the outstanding balance of CAD 1,400 on its credit facility.

Per the terms of the 2024 Facility, the Company has to pay an unused line fee, which ranges from 0.25% to 0.45%, depending on the utilization of the 2024 Facility. The unused line fee is 0.45% if the utilization is less than 33% of the overall facility commitment and is 0.25% if the utilization is greater than 66% of the overall facility commitment. No changes were made to the unused line fee in the Revised facility.

All assets of Fund I are pledged as collateral under the Revised Facility. The Revised Facility requires Fund I and the Company to maintain certain periodic financial covenants surrounding capitalization, cash flow and default, delinquency and charge-off ratios.

Employee Compensation and Benefit Plans

As of December 31, 2025, the Company employed personnel at its headquarters in Wilton, Connecticut and remotely throughout the United States. Employee compensation and benefits are comprised of base salaries, discretionary bonuses, health care benefits, employer 401(k) contributions and payroll taxes. As a part of their employment agreements, certain members of senior management are eligible for an annual bonus amount, which is calculated as a percentage of their annual salaries, based on certain financial performance metrics, as described in their employment agreements.

Effective August 1, 2017, the Company formed a Long-Term Incentive Plan (“LTIP”) that provides for an annual bonus pool to certain members of senior management based on the Company achieving certain performance criteria.

The Company sponsors a 401(k) plan, where the Company contributes a defined percentage of employees’ annual earnings up to the maximum annual contribution amount as determined by the Internal Revenue Service.

Fair Value of Financial Instruments

FASB ASC 820, Fair Value Measurements (“ASC 820”), establishes a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect management’s market assumptions.

These two types of inputs create the following fair value hierarchy:

Level 1 – Quoted prices for identical instruments in active markets.

Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, such as interest rates and foreign exchange rates that are observable at commonly quoted intervals. Financial assets utilizing Level 2 inputs include interest rate caps.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Fair Value of Financial Instruments (continued)

Level 3 – Unobservable inputs.

As of December 31, 2025 and December 31, 2024, the Company measured its interest rate hedges at fair value. Total fair value of such derivative instruments As of December 31, 2025 and December 31, 2024, was ($10) and $1, respectively, which was classified as Level 2 in the fair value hierarchy by the Company. The fair value of interest rate caps and collars are measured using discounted cash flow calculations based on observable inputs from the relevant interest/exchange rate curves in effect at December 31, 2025, and 2024.

ASC 820 also requires that the Company disclose estimated fair values for its financial instruments. No quoted market exists for the Company’s financial instruments. Therefore, fair value estimates are based on judgments, risk characteristics of various financial instruments and other factors. Changes in these assumptions could significantly affect the estimates.

The Company estimates the carrying amounts of cash approximated its fair values as of December 31, 2025 and December 31, 2024. Since there is no liquid secondary market for the Company’s financing receivables, the Company estimates the fair value of its secured loans and net investment in direct finance leases by comparing the average yield of the portfolio to recent issuances of similar loans and leases. As of December 31, 2025 and December 31, 2024, the Company estimated the fair value of its financial liabilities based on the terms of its senior secured credit facility, (see note 6), and recent transactions of loans from affiliate.

The carrying amount and estimated fair values of the Company’s financial instruments at December 31, 2025 and December 31, 2024, were as follows:


	2025						2024
	Fair Value Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and restricted cash		Level 1	$	5,821	$	5,821	$	6,324	$	6,324

Net investment in direct finance leases		Level 3		144,288		144,708		141,856		142,044
Secured loans, net		Level 3		155,465		152,870		183,083		181,706
Total financing receivables, net of allowances				299,753		297,578		324,939		323,750

Financial liabilities:
Senior secured credit facility, net		Level 2	$	236,683	$	236,683	$	260,483	$	260,483
Loans from Affiliate		Level 2		8,500		8,500		13,582		13,646

Concentration of Credit Risk

Financing receivables subject the Company to credit risk. The Company monitors its portfolios by evaluating each of the customers’ financial condition and collateral. The Company’s maximum exposure to credit risk at December 31, 2025 and December 31, 2024, without considering the underlying collateral, is represented by the carrying value of the financing receivables in the consolidated balance sheets. The Company monitors its financing receivables for geographic concentrations.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

Concentration of Credit Risk (continued)

The following table reflects such concentrations as of December 31, 2025 and December 31, 2024:


Geographic Concentration

		2025			2024
Texas	$	64,906	Texas	$	68,507
Massachusetts		30,800	Massachusetts		27,091
New York		22,996	Louisiana		26,864
Illinois		20,465	Connecticut		22,599
California		19,983	Illinois		20,943
Colorado		16,773	Pennsylvania		20,047
Pennsylvania		15,720	New York		19,951
Louisiana		13,738	Colorado		14,359
Utah		11,722	Georgia		11,725
Georgia		11,160	California		9,856
Other U.S. states / Canada		76,454	Other U.S. states / Canada		88,566
Total financing receivables, gross	$	304,717	Total financing receivables, gross	$	330,508

Concentration of Credit Risk (Continued)

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are implemented regarding the acceptability of types of collateral and valuation parameters. Typically, the Company obtains access to collateral either through direct ownership or by a first lien security interest.

The Company also monitors its financing receivables for collateral concentrations. The following tables reflect such concentrations as of December 31, 2025 and December 31, 2024:


Collateral Concentrations

		2025			2024
Servers	$	33,328	Truck	$	31,973
Truck		29,976	Forklift		27,506
Food Processing Line		19,055	Crane		22,697
Crane		18,731	Tractor		21,356
Barge Rig		15,587	Barge Rig		17,883
Tractor		14,213	Package Sorting Equipment		16,708
Forklift		13,261	Excavator		16,295
All other		160,566	All other		176,090
Total financing receivables, gross	$	304,717	Total financing receivables, gross	$	330,508

At December 31, 2025 and December 31, 2024, the Company had financing receivables outstanding to a single largest customer that approximated 5% and 5%, respectively, of total financing receivables for each period.

NEF Holdings, LLC and Subsidiaries

Notes to the Consolidated Financial Statements (continued)

(In Thousands)

10.

Contingencies and Commitments

As of December 31, 2025, the Company had a U.S. and a Canadian revolving financing arrangement with a total outstanding balance of $3,769 and CAD 545, respectively, which are included in financing receivables, net in the consolidated balance sheets. As of December 31, 2024, the Company had a U.S. and a Canadian revolving financing arrangement with a total outstanding balance of $3,149 and CAD 886, respectively, which are included in financing receivables, net in the consolidated balance sheets. The Company’s maximum commitments under the U.S. and Canadian revolvers were $4,000 and CAD 1,500, respectively, for both years ending December 31, 2025 and December 31, 2024.

11.

Members’ Capital

At December 31, 2025 and December 31, 2024, NEFCORP owns 100 Class A units and NEFPASS owns 100 Class B units, which represents the entire capital of the Company.

12.

Subsequent Events

The Company has evaluated subsequent events through February 10, 2026, the issuing date of the consolidated financial statements.

Contents

Independent Auditors' Report

Opinion

Basis for Opinion

Responsibilities of Management for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Use of Estimates

Cash

Financing Receivables

Income Recognition

Other Income

Fixed Assets

Good Faith Deposits

Allowance for Credit Losses on Financing Receivables

Allowance for Credit Losses on Financing Receivables (continued)

Non-Accrual Financing Receivables

Equipment on Lease

Equipment on Lease (continued)

Equipment off Lease

Derivative Instruments

Debt

Deferred Financing Costs

Contingencies and Commitments

Financial Asset Transfers

Financial Asset Transfers (Continued)

Foreign Currencies

Income Taxes

Fair Value Measurement

Leases

Goodwill

SLR Investment Corp. 10-K