UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 10-Q

(Mark One)


			þ			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
						OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2020


			o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
						OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 1-35999

Oaktree Strategic Income Corporation

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


DELAWARE (State or jurisdiction of incorporation or organization)						61-1713295 (I.R.S. Employer Identification No.)

333 South Grand Avenue, 28th Floor Los Angeles, CA (Address of principal executive office)						90071 (Zip Code)

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:

(213) 830-6300

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange
on Which Registered

Common Stock, par value $0.01 per share

OCSI

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES þ NO ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ¨ NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o

Accelerated filer o

Non-accelerated filer þ

Smaller reporting company o

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YES ¨ NO þ

The registrant had 29,466,768 shares of common stock outstanding as of February 2, 2021.

OAKTREE STRATEGIC INCOME CORPORATION

FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2020

TABLE OF CONTENTS



		PART I — FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements:
		Consolidated Statements of Assets and Liabilities as of December 31, 2020 (unaudited) and September 30, 2020	1
		Consolidated Statements of Operations (unaudited) for the three months ended December 31, 20 20 and 20 19	2
		Consolidated Statements of Changes in Net Assets (unaudited) for the three months ended December 31, 20 2 0 and 201 9	3
		Consolidated Statements of Cash Flows (unaudited) for the three months ended December 31, 20 20 and 201 9	4
		Consolidated Schedule of Investments (unaudited) as of December 31, 20 20	5
		Consolidated Schedule of Investments as of September 30, 20 20	12
		Notes to Consolidated Financial Statements (unaudited)	19
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		53
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		74
Item 4.	Controls and Procedures		76
		PART II — OTHER INFORMATION
Item 1.	Legal Proceedings		77
Item 1A.	Risk Factors		77
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		77
Item 3.	Defaults Upon Senior Securities		77
Item 4.	Mine Safety Disclosures		77
Item 5.	Other Information		77
Item 6.	Exhibits		77
Signatures			78

PART I — FINANCIAL INFORMATION


Item 1.			Consolidated Financial Statements.

Oaktree Strategic Income Corporation

Consolidated Statements of Assets and Liabilities


	December 31, 2020 (unaudited)		September 30, 2020
ASSETS
Investments at fair value:
Control investments (cost December 31, 2020: $71,157,302; cost September 30, 2020: $72,157,302)	$	53,365,955	$	49,409,901
Non-control/Non-affiliate investments (cost December 31, 2020: $476,033,813; cost September 30, 2020: $466,907,805)	467,630,331		452,883,464
Total investments at fair value (cost December 31, 2020: $547,191,115; cost September 30, 2020: $539,065,107)	520,996,286		502,293,365
Cash and cash equivalents	13,604,901		25,072,749
Restricted cash	4,318,964		4,427,678
Interest, dividends and fees receivable	1,849,179		1,273,014
Due from portfolio companies	650,241		527,064
Receivables from unsettled transactions	1,660,674		7,966,668
Deferred financing costs	1,877,404		2,130,020
Deferred offering costs	140,761		121,310

Other assets	7,424,294		557,776
Total assets	$	552,522,704	$	544,369,644
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable, accrued expenses and other liabilities	$	1,705,696	$	1,401,709
Base management fee and incentive fee payable	1,336,019		1,663,660
Due to affiliate	1,362,685		1,165,838
Interest payable	1,478,926		1,486,077
Payables from unsettled transactions	17,267,238		4,254,635
Derivative liability at fair value	174,231		129,936

Credit facilities payable	252,756,800		256,656,800
Secured borrowings	—		10,929,578
Total liabilities	276,081,595		277,688,233
Commitments and contingencies (Note 14)
Net assets:
Common stock, $0.01 par value per share, 150,000,000 shares authorized; 29,466,768 shares issued and outstanding as of December 31, 2020 and September 30, 2020	294,668		294,668
Additional paid-in-capital	369,199,332		369,199,332
Accumulated overdistributed earnings	(93,052,891)		(102,812,589)
Total net assets (equivalent to $9.38 and $9.05 per common share as of December 31, 2020 and September 30, 2020, respectively) (Note 12)	276,441,109		266,681,411
Total liabilities and net assets	$	552,522,704	$	544,369,644

See notes to Consolidated Financial Statements.

Oaktree Strategic Income Corporation

Consolidated Statements of Operations

(unaudited)


	Three months ended December 31, 2020		Three months ended December 31, 2019
Interest income:
Control investments	$	—	$	1,436,726
Non-control/Non-affiliate investments	7,686,948		9,744,449
Interest on cash and cash equivalents	765		30,710
Total interest income	7,687,713		11,211,885
PIK interest income:
Non-control/Non-affiliate investments	1,083,572		3,563
Total PIK interest income	1,083,572		3,563
Fee income:
Non-control/Non-affiliate investments	215,460		387,665
Total fee income	215,460		387,665



Total investment income	8,986,745		11,603,113
Expenses:
Base management fee	1,303,342		1,505,526
Part I incentive fee	32,655		992,138
Professional fees	1,069,398		373,186
Directors fees	105,000		105,000
Interest expense	2,095,449		3,426,891
Administrator expense	216,730		249,914
General and administrative expenses	163,945		273,479
Total expenses	4,986,519		6,926,134
Fees waived	—		(50,601)
Net expenses	4,986,519		6,875,533
Net investment income	4,000,226		4,727,580
Unrealized appreciation (depreciation):
Control investments	4,956,054		(135,068)
Non-control/Non-affiliate investments	5,620,859		2,251,040
Foreign currency forward contract	(44,295)		(189,588)
Net unrealized appreciation (depreciation)	10,532,618		1,926,384
Realized gains (losses):
Non-control/Non-affiliate investments	(291,665)		(277,225)
Foreign currency forward contract	(208,800)		(242,485)
Net realized gains (losses)	(500,465)		(519,710)
Net realized and unrealized gains (losses)	10,032,153		1,406,674
Net increase (decrease) in net assets resulting from operations	$	14,032,379	$	6,134,254
Net investment income per common share — basic and diluted	$	0.14	$	0.16
Earnings (loss) per common share — basic and diluted (Note 5)	$	0.48	$	0.21
Weighted average common shares outstanding — basic and diluted	29,466,768		29,466,768

See notes to Consolidated Financial Statements.

Oaktree Strategic Income Corporation

Consolidated Statements of Changes in Net Assets

(unaudited)


	Three months ended December 31, 2020		Three months ended December 31, 2019
Operations:
Net investment income	$	4,000,226	$	4,727,580
Net unrealized appreciation (depreciation)	10,532,618		1,926,384
Net realized gains (losses)	(500,465)		(519,710)
Net increase (decrease) in net assets resulting from operations	14,032,379		6,134,254
Stockholder transactions:
Distributions to stockholders	(4,272,681)		(4,567,350)
Net increase (decrease) in net assets from stockholder transactions	(4,272,681)		(4,567,350)
Capital share transactions:
Issuance of common stock under dividend reinvestment plan	106,708		64,334
Repurchases of common stock under dividend reinvestment plan	(106,708)		(64,334)
Net change in net assets from capital share transactions	—		—
Total increase (decrease) in net assets	9,759,698		1,566,904
Net assets at beginning of period	266,681,411		284,450,006
Net assets at end of period	$	276,441,109	$	286,016,910
Net asset value per common share	$	9.38	$	9.71
Common shares outstanding at end of period	29,466,768		29,466,768

See notes to Consolidated Financial Statements.

Oaktree Strategic Income Corporation

Consolidated Statements of Cash Flows

(unaudited)


	Three months ended December 31, 2020		Three months ended December 31, 2019
Operating activities:
Net increase (decrease) in net assets resulting from operations	$	14,032,379	$	6,134,254
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net unrealized (appreciation) depreciation	(10,532,618)		(1,926,384)
Net realized (gains) losses	500,465		519,710
PIK interest income	(1,083,572)		(3,563)
Accretion of original issue discount on investments	(393,612)		(305,960)
Amortization of deferred financing costs	252,616		215,926
Purchases of investments	(41,456,188)		(34,025,019)
Proceeds from the sales and repayments of investments	34,272,909		48,581,768
Changes in operating assets and liabilities:
(Increase) decrease in interest, dividends and fees receivable	(496,037)		781,889
(Increase) decrease in due from portfolio companies	(123,177)		(456,317)
(Increase) decrease in receivables from unsettled transactions	6,305,994		986,629
(Increase) decrease in other assets	(6,866,518)		(56,454)
Increase (decrease) in accounts payable, accrued expenses and other liabilities	303,987		30,905
Increase (decrease) in base management fee and incentive fee payable	(327,641)		(113,087)
Increase (decrease) in due to affiliate	196,847		(52,596)
Increase (decrease) in interest payable	(7,151)		(204,843)
Increase (decrease) in payables from unsettled transactions	13,012,603		(23,070,802)
Increase (decrease) in director fees payable	—		(25,000)

Net cash provided by (used in) operating activities	7,591,286		(2,988,944)
Financing activities:
Distributions paid in cash	(4,165,973)		(4,503,016)
Borrowings under credit facilities	5,500,000		23,000,000
Repayments of borrowings under credit facilities	(9,400,000)		(11,500,000)
Repayments of secured borrowings	(10,929,578)		—
Repurchases of common stock under dividend reinvestment plan	(106,708)		(64,334)

Offering costs paid	(19,451)		—
Net cash provided by (used in) financing activities	(19,121,710)		6,932,650
Effect of exchange rate changes on foreign currency	(46,138)		(264)
Net increase (decrease) in cash and cash equivalents and restricted cash	(11,576,562)		3,943,442
Cash and cash equivalents and restricted cash, beginning of period	29,500,427		14,051,632
Cash and cash equivalents and restricted cash, end of period	$	17,923,865	$	17,995,074
Supplemental information:
Cash paid for interest	$	1,849,984	$	3,415,808
Non-cash financing activities:
Issuance of shares of common stock under dividend reinvestment plan	$	106,708	$	64,334



Reconciliation to the Consolidated Statements of Assets and Liabilities	December 31, 2020		September 30, 2020
Cash and cash equivalents	$	13,604,901	$	25,072,749
Restricted cash	4,318,964		4,427,678
Total cash and cash equivalents and restricted cash	$	17,923,865	$	29,500,427

See notes to Consolidated Financial Statements.

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

December 31, 2020

(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Control Investments									(8)
OCSI Glick JV LLC		Multi-Sector Holdings							(10)(11)
Subordinated Note, LIBOR+4.50% cash due 10/20/2028			$	64,045,551	$	64,045,551	$	53,365,955	(6)(9)(14)(15) (16)
87.5% equity interest					7,111,751		—		(9)(12)(14)
					71,157,302		53,365,955
Total Control Investments (19.3% of net assets)					$	71,157,302	$	53,365,955

Non-Control/Non-Affiliate Investments									(13)
4 Over International, LLC		Commercial Printing
First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022	7.00%		$	5,463,091	$	5,403,613	$	5,067,017	(6)(15)
First Lien Revolver, LIBOR+6.00% cash due 6/7/2021	7.00%		68,452		67,950		63,489		(6)(15)
					5,471,563		5,130,506
Access CIG, LLC		Diversified Support Services
First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025	3.98%		5,393,093		5,358,817		5,349,274		(6)
					5,358,817		5,349,274
Accupac, Inc.		Personal Products
First Lien Term Loan, LIBOR+6.00% cash due 1/17/2026	7.00%		3,807,096		3,751,201		3,807,096		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026			—		(10,527)		—		(6)(14)(15)
First Lien Revolver, LIBOR+6.00% cash due 1/17/2026	7.00%		477,989		470,972		477,989		(6)(15)
					4,211,646		4,285,085
ADB Companies, LLC		Construction & Engineering
First Lien Term Loan, LIBOR+6.25% cash due 12/18/2025	7.25%		5,000,000		4,875,000		4,900,000		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+6.25% cash due 12/18/2025			—		(25,000)		(20,000)		(6)(14)(15)
					4,850,000		4,880,000
AI Ladder (Luxembourg) Subco S.a.r.l.		Electrical Components & Equipment
First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025	4.65%		6,383,752		6,259,522		6,343,854		(6)(9)
					6,259,522		6,343,854
Airbnb, Inc.		Hotels, Resorts & Cruise Lines
First Lien Term Loan, LIBOR+7.50% cash due 4/17/2025	8.50%		4,743,165		4,639,674		5,152,263		(6)
					4,639,674		5,152,263
Aldevron, L.L.C.		Biotechnology
First Lien Term Loan, LIBOR+4.25% cash due 10/12/2026	5.25%		5,479,396		5,435,923		5,506,793		(6)
					5,435,923		5,506,793
All Web Leads, Inc.		Advertising
First Lien Term Loan, LIBOR+5.00% cash 2.00% PIK due 12/29/2023	6.00%		24,297,106		24,297,080		22,439,228		(6)(15)
					24,297,080		22,439,228
Amplify Finco Pty Ltd.		Movies & Entertainment
First Lien Term Loan, LIBOR+4.25% cash due 11/26/2026	5.00%		8,164,435		7,856,797		7,592,924		(6)(9)(15)
					7,856,797		7,592,924
Ancile Solutions, Inc.		Application Software
First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021	8.00%		7,647,676		7,578,187		7,640,028		(6)(15)
					7,578,187		7,640,028
Apptio, Inc.		Application Software
First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025	8.25%		10,693,944		10,548,610		10,493,272		(6)(15)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025			—		(9,286)		(12,991)		(6)(14)(15)
					10,539,324		10,480,281
Ardonagh Midco 3 PLC		Insurance Brokers
First Lien Term Loan, EURIBOR+7.50% cash due 7/14/2026	8.50%		€	480,000	532,090		582,018		(6)(9)(15)
First Lien Term Loan, UK LIBOR+5.4375% cash 2.0625% PIK due 7/14/2026	6.19%		£	3,767,573	4,591,050		5,103,733		(6)(9)(15)
First Lien Delayed Draw Term Loan, UK LIBOR+5.4375% cash 2.0625% PIK due 7/14/2026	6.19%		£	133,333	144,517		172,418		(6)(9)(14)(15)
					5,267,657		5,858,169

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

December 31, 2020

(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes

Athenex, Inc.		Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/2026			$	5,316,814	$	5,104,661	$	5,307,243	(9)(15)



First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026			2,658,408		2,513,063		2,646,444		(9)(14)(15)
62,097 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027					213,614		200,573		(9)(15)
					7,831,338		8,154,260
Blackhawk Network Holdings, Inc.		Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026	7.19%		4,375,000		4,342,999		4,003,125		(6)
					4,342,999		4,003,125
Boxer Parent Company Inc.		Systems Software
First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025	4.40%		4,520,477		4,465,655		4,510,917		(6)
					4,465,655		4,510,917
Cadence Aerospace, LLC		Aerospace & Defense

First Lien Term Loan, LIBOR+3.25% cash 5.25% PIK due 11/14/2023	4.25%		13,771,324		13,683,563		12,647,584		(6)(15)
					13,683,563		12,647,584
Carrols Restaurant Group, Inc.		Restaurants
First Lien Term Loan, LIBOR+6.25% cash due 4/30/2026	7.25%		3,568,070		3,397,568		3,554,690		(6)
					3,397,568		3,554,690
Chief Power Finance II, LLC		Independent Power Producers & Energy Traders
First Lien Term Loan, LIBOR+6.50% cash due 12/31/2022	7.50%		3,281,250		3,229,732		3,125,391		(6)(15)
					3,229,732		3,125,391
CircusTrix Holdings LLC		Leisure Facilities
First Lien Term Loan, LIBOR+6.75% PIK due 12/16/2021			9,622,286		9,597,730		7,037,740		(6)(15)
					9,597,730		7,037,740
CITGO Petroleum Corp.		Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+6.25% cash due 3/28/2024	7.25%		5,373,977		5,320,238		5,355,168		(6)
					5,320,238		5,355,168
Connect U.S. Finco LLC		Alternative Carriers
First Lien Term Loan, LIBOR+4.50% cash due 12/11/2026	5.50%		1,336,670		1,277,537		1,344,429		(6)(9)
					1,277,537		1,344,429
Continental Intermodal Group LP		Oil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+9.50% PIK due 1/28/2025			10,501,728		10,501,728		8,558,908		(6)(15)
Common Stock Warrants expiration date 7/28/2025					—		690,993		(15)
					10,501,728		9,249,901
Coyote Buyer, LLC		Specialty Chemicals
First Lien Term Loan, LIBOR+6.00% cash due 2/6/2026	7.00%		5,436,650		5,382,284		5,382,284		(6)(15)
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025			—		(3,913)		(3,913)		(6)(14)(15)
					5,378,371		5,378,371
CTOS, LLC		Trading Companies & Distributors
First Lien Term Loan, LIBOR+4.25% cash due 4/18/2025	4.40%		8,709,145		8,800,015		8,731,832		(6)
					8,800,015		8,731,832
Dealer Tire, LLC		Distributors
First Lien Term Loan, LIBOR+4.25% cash due 12/12/2025	4.40%		8,829,108		8,742,199		8,792,290		(6)
					8,742,199		8,792,290
FFI Holdings I Corp		Industrial Machinery
First Lien Term Loan, LIBOR+6.25% cash due 1/24/2025	7.25%		917,800		826,758		826,020		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+6.25% cash due 1/24/2025			—		—		—		(6)(14)(15)
					826,758		826,020

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

December 31, 2020

(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Firstlight Holdco, Inc.		Alternative Carriers
First Lien Term Loan, LIBOR+3.50% cash due 7/23/2025	3.65%		$	7,066,265	$	7,042,968	$	6,896,251	(6)
					7,042,968		6,896,251
Fortress Biotech, Inc.		Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/2025			3,013,000		2,842,552		2,907,545		(9)(15)
87,852 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030					93,123		94,002		(9)(15)
					2,935,675		3,001,547
GI Chill Acquisition LLC		Managed Health Care
First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025	4.25%		2,962,121		2,939,905		2,936,203		(6)(15)
					2,939,905		2,936,203
GKD Index Partners, LLC		Specialized Finance
First Lien Term Loan, LIBOR+7.00% cash due 6/29/2023	8.00%		7,579,014		7,541,409		7,457,749		(6)(15)
First Lien Revolver, LIBOR+7.00% cash due 6/29/2023	8.00%		355,556		352,400		348,444		(6)(14)(15)
					7,893,809		7,806,193
Global Medical Response		Health Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025	5.25%		2,457,008		2,418,438		2,438,580		(6)
					2,418,438		2,438,580
Guidehouse LLP		Research & Consulting Services
First Lien Term Loan, LIBOR+4.50% cash due 5/1/2025	4.65%		2,468,354		2,448,297		2,472,464		(6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/1/2026	8.15%		5,000,000		4,983,262		5,000,000		(6)(15)
					7,431,559		7,472,464
Gulf Operating, LLC		Oil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+5.25% cash due 8/25/2023	6.25%		818,173		503,909		624,442		(6)
					503,909		624,442
Helios Software Holdings, Inc.		Systems Software
First Lien Term Loan, LIBOR+4.25% cash due 10/24/2025	4.52%		3,959,535		3,919,939		3,946,330		(6)
					3,919,939		3,946,330
iCIMs, Inc.		Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024	7.50%		6,464,060		6,376,820		6,416,225		(6)(15)
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024	7.50%		294,118		289,503		291,941		(6)(15)
					6,666,323		6,708,166
Immucor, Inc.		Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/2025	6.75%		2,261,883		2,221,254		2,216,646		(6)(15)
First Lien Revolver, LIBOR+5.75% cash due 7/2/2025			—		(3,403)		(3,789)		(6)(14)(15)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/2025	9.00%		5,514,202		5,416,352		5,403,918		(6)(15)
					7,634,203		7,616,775
Jazz Acquisition, Inc.		Aerospace & Defense
First Lien Term Loan, LIBOR+7.50% cash due 1/29/2027	8.50%		6,114,675		5,879,633		5,863,973		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+7.50% cash due 1/29/2027			—		—		—		(6)(14)(15)
					5,879,633		5,863,973
Lannett Company, Inc.		Pharmaceuticals
First Lien Term Loan, LIBOR+5.38% cash due 11/25/2022	6.38%		6,675,788		6,682,750		6,586,499		(6)(9)
					6,682,750		6,586,499
Latam Airlines Group S.A.		Airlines
First Lien Delayed Draw Term Loan, LIBOR+11.00% PIK due 3/29/2022			2,951,000		2,852,304		3,049,357		(6)(9)(14)(15)
					2,852,304		3,049,357
Lightbox Intermediate, L.P.		Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026	5.15%		9,850,000		9,736,627		9,554,500		(6)(15)
					9,736,627		9,554,500
LogMeIn, Inc.		Application Software
First Lien Term Loan, LIBOR+4.75% cash due 8/31/2027	4.90%		4,000,000		3,904,331		3,995,020		(6)
					3,904,331		3,995,020

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

December 31, 2020

(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Maravai Intermediate Holdings, LLC		Biotechnology
First Lien Term Loan, LIBOR+4.25% cash due 10/19/2027	5.25%		$	2,750,000	$	2,722,500	$	2,780,938	(6)
					2,722,500		2,780,938
MHE Intermediate Holdings, LLC		Diversified Support Services
First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024	6.00%		11,390,168		11,284,829		11,091,210		(6)(15)
First Lien Revolver, LIBOR+5.00% cash due 3/10/2023			—		(228,947)		(137,915)		(6)(14)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/2024	6.00%		2,319,489		2,345,919		2,258,610		(6)(15)
					13,401,801		13,211,905
Mindbody, Inc.		Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/2025	8.00%		9,127,375		9,003,326		8,362,501		(6)(15)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025			—		(13,058)		(79,810)		(6)(14)(15)
					8,990,268		8,282,691
Ministry Brands, LLC		Application Software
First Lien Revolver, LIBOR+5.00% cash due 12/2/2022			—		(861)		(850)		(6)(14)(15)

Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023	10.25%		2,000,000		1,986,735		1,982,994		(6)(15)
					1,985,874		1,982,144
MRI Software LLC		Application Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/2026	6.50%		6,239,101		6,188,672		6,223,503		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026			—		(21,875)		(4,767)		(6)(14)(15)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026			—		(5,283)		(1,321)		(6)(14)(15)
					6,161,514		6,217,415
NeuAG, LLC		Fertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024	7.00%		8,682,275		8,369,100		8,387,077		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.00% PIK due 9/11/2024			—		(42,360)		(36,006)		(6)(14)(15)
					8,326,740		8,351,071
Northwest Fiber, LLC		Integrated Telecommunication Services
First Lien Term Loan, LIBOR+5.50% cash due 4/30/2027	5.65%		4,189,945		4,045,357		4,210,895		(6)
					4,045,357		4,210,895
OEConnection LLC		Application Software
First Lien Term Loan, LIBOR+4.00% cash due 9/25/2026	4.15%		8,372,006		8,333,662		8,309,216		(6)
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026			—		(129)		(228)		(6)(14)
					8,333,533		8,308,988
Olaplex, Inc.		Personal Products
First Lien Term Loan, LIBOR+6.50% cash due 1/8/2026	7.50%		11,198,170		11,027,044		11,198,170		(6)(15)
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025			—		(15,588)		—		(6)(14)(15)
					11,011,456		11,198,170
Onvoy, LLC		Integrated Telecommunication Services
First Lien Term Loan, LIBOR+4.50% cash due 2/10/2024	5.50%		3,811,111		3,802,651		3,728,944		(6)
					3,802,651		3,728,944
Park Place Technologies, LLC		Internet Services & Infrastructure
First Lien Term Loan, LIBOR+5.00% cash due 11/10/2027	6.00%		5,000,000		4,803,843		4,816,650		(6)
					4,803,843		4,816,650
PaySimple, Inc.		Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+5.50% cash due 8/23/2025	5.65%		9,881,964		9,726,235		9,684,326		(6)(15)
					9,726,235		9,684,326

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

December 31, 2020

(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Peraton Corp.		Aerospace & Defense
First Lien Term Loan, LIBOR+5.25% cash due 4/29/2024	6.25%		$	6,272,500	$	6,257,739	$	6,288,181	(6)(15)
					6,257,739		6,288,181
PG&E Corporation		Electric Utilities
First Lien Term Loan, LIBOR+4.50% cash due 6/23/2025	5.50%		1,990,000		1,963,132		2,016,865		(6)
					1,963,132		2,016,865
ProFrac Services, LLC		Industrial Machinery
First Lien Term Loan, LIBOR+7.50% cash due 9/15/2023	8.75%		8,200,295		8,155,984		6,457,732		(6)(15)
					8,155,984		6,457,732
Project Boost Purchaser, LLC		Application Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/9/2027	8.15%		1,500,000		1,500,000		1,470,000		(6)(15)
					1,500,000		1,470,000
Pug LLC		Internet & Direct Marketing Retail
First Lien Term Loan, LIBOR+8.00% cash due 2/12/2027	8.75%		5,689,740		5,364,404		5,803,535		(6)
					5,364,404		5,803,535
Recorded Books Inc.		Publishing
First Lien Term Loan, LIBOR+4.25% cash due 8/29/2025	4.40%		9,731,499		9,634,184		9,707,170		(6)
					9,634,184		9,707,170
RevSpring, Inc.		Commercial Printing
First Lien Term Loan, LIBOR+4.25% cash due 10/11/2025	4.40%		9,800,000		9,783,141		9,604,000		(6)(15)
					9,783,141		9,604,000
RS Ivy Holdco, Inc.		Oil & Gas Exploration & Production
First Lien Term Loan, LIBOR+5.50% cash due 12/23/2027	6.50%		2,500,000		2,462,500		2,487,500		(6)(15)
					2,462,500		2,487,500
Sabert Corporation		Metal & Glass Containers
First Lien Term Loan, LIBOR+4.50% cash due 12/10/2026	5.50%		1,827,941		1,809,662		1,828,700		(6)
					1,809,662		1,828,700
Salient CRGT, Inc.		Aerospace & Defense
First Lien Term Loan, LIBOR+6.50% cash due 2/28/2022	7.50%		5,406,994		5,382,554		5,204,232		(6)(15)
					5,382,554		5,204,232
Signify Health, LLC		Health Care Services
First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024	5.50%		10,697,500		10,635,477		10,376,575		(6)
					10,635,477		10,376,575
Sirva Worldwide, Inc.		Diversified Support Services
First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025	5.65%		7,600,000		7,486,000		6,963,500		(6)
					7,486,000		6,963,500
Star US Bidco LLC		Industrial Machinery
First Lien Term Loan, LIBOR+4.25% cash due 3/17/2027	5.25%		5,812,307		5,525,593		5,717,857		(6)
					5,525,593		5,717,857
Supermoose Borrower, LLC		Application Software
First Lien Term Loan, LIBOR+3.75% cash due 8/29/2025	4.00%		1,479,313		1,402,661		1,387,596		(6)
					1,402,661		1,387,596
Telestream Holdings Corporation		Application Software
First Lien Term Loan, LIBOR+8.75% cash due 10/15/2025	9.75%		3,629,000		3,564,486		3,556,420		(6)(15)
First Lien Revolver, LIBOR+8.75% cash due 10/15/2025			—		(6,611)		(6,840)		(6)(14)(15)
					3,557,875		3,549,580
Thrasio, LLC		Specialized Finance
First Lien Term Loan, LIBOR+7.00% cash due 12/18/2026	8.00%		5,732,737		5,589,419		5,589,419		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+7.00% cash due 12/18/2026			—		(94,613)		(94,613)		(6)(14)(15)
					5,494,806		5,494,806
Trident Topco LLC		Health Care Services
58.99 Class A Warrants (exercise price $156.164) expiration date 3/20/2021					—		—		(15)
					—		—

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

December 31, 2020

(unaudited)


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Truck Hero, Inc.		Auto Parts & Equipment
First Lien Term Loan, LIBOR+3.75% cash due 4/22/2024	3.90%		$	5,666,480	$	5,673,579	$	5,667,642	(6)
					5,673,579		5,667,642
Veritas US Inc.		Application Software
First Lien Term Loan, LIBOR+5.50% cash due 9/1/2025	6.50%		5,985,000		5,872,571		5,976,771		(6)
					5,872,571		5,976,771
Verscend Holding Corp.		Health Care Technology
First Lien Term Loan, LIBOR+4.50% cash due 8/27/2025	4.65%		11,800,646		11,703,560		11,818,347		(6)
					11,703,560		11,818,347
William Morris Endeavor Entertainment, LLC		Movies & Entertainment
First Lien Term Loan, LIBOR+8.50% cash due 5/18/2025	9.50%		8,350,065		7,946,881		8,595,348		(6)(15)
					7,946,881		8,595,348
Windstream Services II, LLC		Integrated Telecommunication Services
First Lien Term Loan, LIBOR+6.25% cash due 9/21/2027	7.25%		5,969,958		5,740,611		5,856,171		(6)
11,903 Shares of Common Stock in Windstream Holdings II, LLC					102,837		174,736		(15)
72,205 Warrants in Windstream Holdings II, LLC					1,656,479		1,059,969		(15)
					7,499,927		7,090,876
WP CPP Holdings, LLC		Aerospace & Defense
First Lien Term Loan, LIBOR+3.75% cash due 4/30/2025	4.75%		4,401,206		4,394,103		4,136,341		(6)
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026	8.75%		1,000,000		993,084		847,500		(6)(15)
					5,387,187		4,983,841
Zep Inc.		Specialty Chemicals
First Lien Term Loan, LIBOR+4.00% cash due 8/12/2024	5.00%		4,595,625		4,618,630		4,499,117		(6)
					4,618,630		4,499,117
Total Non-Control/Non-Affiliate Investments (169.2% of net assets)					$	476,033,813	$	467,630,331
Total Portfolio Investments (188.5% of net assets)					$	547,191,115	$	520,996,286
Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares					$	1,773,458	$	1,773,458
Other cash accounts					16,150,407		16,150,407
Cash and Cash Equivalents and Restricted Cash (6.5% of net assets)					$	17,923,865	$	17,923,865
Total Portfolio Investments, Cash and Cash Equivalents and Restricted Cash (194.9% of net assets)					$	565,114,980	$	538,920,151


Derivatives Instrument	Notional Amount Purchased / (Sold) in U.S. Dollars		Notional Amount Purchased / (Sold) in Local Currency		Maturity Date	Counterparty	Cumulative Unrealized Appreciation (Depreciation)
Foreign currency forward contract	$	550,921	€	(465,600)	2/11/2021	JPMorgan Chase Bank, N.A.	$	(19,315)
Foreign currency forward contract	$	5,024,432	£	(3,787,879)	2/11/2021	JPMorgan Chase Bank, N.A.	$	(154,916)
							$	(174,231)

(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.

(2)See Note 3 to the Consolidated Financial Statements for portfolio composition by geographic region.

(3)Interest rates may be adjusted from period to period on certain term loans and revolvers. These rate adjustments may be either temporary in nature due to tier pricing arrangements or financial or payment covenant violations in the original credit agreements or permanent in nature per loan amendment or waiver documents.

(4)Each of the Company's investments is pledged as collateral under one or more of its credit facilities. A single investment may be divided into parts that are individually pledged as collateral to separate credit facilities.

(5)Equity ownership may be held in shares or units of companies related to the portfolio companies.

(6)The interest rate on the principal balance outstanding for all floating rate loans is indexed to the London Interbank Offered Rate ("LIBOR") and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

December 31, 2020

(unaudited)

also elect to have multiple interest reset periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars unless otherwise noted. As of December 31, 2020, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.25%, the 180-day LIBOR at 0.26%, the 360-day LIBOR at 0.34%, the 180-day UK LIBOR at 0.22% and the 180-day EURIBOR at (0.36)%. Most loans include an interest floor, which generally ranges from 0% to 1%.

(7)Principal includes accumulated payment in kind ("PIK") interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.

(8)Control Investments generally are defined by the Investment Company Act of 1940, as amended (the "Investment Company Act"), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

(9)Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of December 31, 2020, qualifying assets represented 82.7% of the Company's total assets and non-qualifying assets represented 17.3% of the Company's total assets.

(10)As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the accompanying notes to the Consolidated Financial Statements for transactions during the three months ended December 31, 2020 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.

(11)See Note 3 to the Consolidated Financial Statements for portfolio composition.

(12)This investment was valued using net asset value as a practical expedient for fair value. Consistent with Financial Accounting Standards Board ("FASB") guidance under Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosure ("ASC 820"), these investments are excluded from the hierarchical levels.

(13)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments. Affiliate Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns between 5% and 25% of the voting securities.

(14)Investment had undrawn commitments. Unamortized fees are classified as unearned income which reduces cost basis, which may result in a negative cost basis. A negative fair value may result from the unfunded commitment being valued below par.

(15)As of December 31, 2020, these investments are categorized as Level 3 within the fair value hierarchy established by ASC 820.

(16)This investment was on cash non-accrual status as of December 31, 2020. Cash non-accrual is inclusive of PIK and other non-cash income, where applicable.

See notes to Consolidated Financial Statements.

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

September 30, 2020


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Control Investments									(8)
OCSI Glick JV LLC		Multi-Sector Holdings							(10)(11)
Subordinated Note, LIBOR+4.50% cash due 10/20/2028			$	65,045,551	$	65,045,551	$	49,409,901	(6)(9)(14)(15) (16)
87.5% equity interest					7,111,751		—		(9)(12)(14)
					72,157,302		49,409,901
Total Control Investments (18.5% of net assets)					$	72,157,302	$	49,409,901

Non-Control/Non-Affiliate Investments									(13)
4 Over International, LLC		Commercial Printing
First Lien Term Loan, LIBOR+6.00% cash due 6/7/2022	7.00%		$	5,492,885	$	5,432,331	$	5,094,651	(6)(15)
First Lien Revolver, LIBOR+6.00% cash due 6/7/2021	7.00%		68,452		67,950		63,489		(6)(15)
					5,500,281		5,158,140
99 Cents Only Stores LLC		General Merchandise Stores
First Lien Term Loan, LIBOR+5.00% cash 1.50% PIK due 1/13/2022	6.00%		1,635,810		1,593,419		1,504,945		(6)
					1,593,419		1,504,945
Access CIG, LLC		Diversified Support Services
First Lien Term Loan, LIBOR+3.75% cash due 2/27/2025	3.91%		5,406,946		5,370,428		5,303,052		(6)
					5,370,428		5,303,052
Accupac, Inc.		Personal Products
First Lien Term Loan, LIBOR+6.00% cash due 1/17/2026	7.00%		3,816,685		3,757,755		3,816,685		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+6.00% cash due 1/17/2026			—		(11,070)		—		(6)(14)(15)
First Lien Revolver, LIBOR+6.00% cash due 1/17/2026	7.00%		477,989		470,609		477,989		(6)(15)
					4,217,294		4,294,674
AI Ladder (Luxembourg) Subco S.a.r.l.		Electrical Components & Equipment
First Lien Term Loan, LIBOR+4.50% cash due 7/9/2025	4.65%		6,412,119		6,280,139		6,139,604		(6)(9)
					6,280,139		6,139,604
Airbnb, Inc.		Hotels, Resorts & Cruise Lines
First Lien Term Loan, LIBOR+7.50% cash due 4/17/2025	8.50%		4,755,083		4,645,028		5,159,265		(6)
					4,645,028		5,159,265
Aldevron, L.L.C.		Biotechnology
First Lien Term Loan, LIBOR+4.25% cash due 10/12/2026	5.25%		5,493,198		5,449,615		5,504,624		(6)
					5,449,615		5,504,624
All Web Leads, Inc.		Advertising
First Lien Term Loan, LIBOR+5.50% cash 2.0% PIK due 12/29/2023	6.50%		24,174,889		24,174,863		22,317,000		(6)(15)(18)
					24,174,863		22,317,000
Amplify Finco Pty Ltd.		Movies & Entertainment
First Lien Term Loan, LIBOR+4.00% cash due 11/26/2026	4.75%		5,970,000		5,910,300		5,134,200		(6)(9)(15)
					5,910,300		5,134,200
Ancile Solutions, Inc.		Application Software
First Lien Term Loan, LIBOR+7.00% cash due 6/30/2021	8.00%		7,825,529		7,747,218		7,770,750		(6)(15)
					7,747,218		7,770,750
Apptio, Inc.		Application Software
First Lien Term Loan, LIBOR+7.25% cash due 1/10/2025	8.25%		10,693,944		10,539,199		10,483,861		(6)(15)
First Lien Revolver, LIBOR+7.25% cash due 1/10/2025			—		(9,867)		(13,600)		(6)(14)(15)
					10,529,332		10,470,261
Ardonagh Midco 3 PLC		Insurance Brokers
First Lien Term Loan, EURIBOR+7.50% cash due 7/14/2026	8.50%		€	480,000	531,300		546,549		(6)(9)(15)
First Lien Term Loan, UK LIBOR+7.50% cash due 7/14/2026	8.25%		£	3,767,573	4,584,049		4,729,468		(6)(9)(15)(18)
First Lien Delayed Draw Term Loan, UK LIBOR+7.50% cash due 7/14/2026			£	—	—		—		(6)(9)(14)(15)
					5,115,349		5,276,017

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

September 30, 2020


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Athenex, Inc.		Pharmaceuticals
First Lien Term Loan, 11.00% cash due 6/19/2026			$	5,316,814	$	5,094,543	$	5,276,938	(9)(15)



First Lien Delayed Draw Term Loan, 11.00% cash due 6/19/2026			1,329,204		1,198,792		1,279,359		(9)(14)(15)
62,097 Common Stock Warrants (exercise price $12.63) expiration date 6/19/2027					213,614		183,186		(9)(15)
					6,506,949		6,739,483
Ball Metalpack Finco, LLC		Metal & Glass Containers
First Lien Term Loan, LIBOR+4.50% cash due 7/31/2025	4.76%		3,424,981		3,413,060		3,308,532		(6)(15)
					3,413,060		3,308,532
Blackhawk Network Holdings, Inc.		Data Processing & Outsourced Services
Second Lien Term Loan, LIBOR+7.00% cash due 6/15/2026	7.19%		4,375,000		4,341,470		4,025,000		(6)
					4,341,470		4,025,000
Boxer Parent Company Inc.		Systems Software
First Lien Term Loan, LIBOR+4.25% cash due 10/2/2025	4.40%		6,057,113		5,992,780		5,895,357		(6)
					5,992,780		5,895,357
Cadence Aerospace, LLC		Aerospace & Defense
First Lien Term Loan, LIBOR+3.25% cash 5.25% PIK due 11/14/2023	4.25%		13,590,961		13,499,354		12,481,939		(6)(15)
					13,499,354		12,481,939
Carrols Restaurant Group, Inc.		Restaurants
First Lien Term Loan, LIBOR+6.25% cash due 4/30/2026	7.25%		3,577,035		3,398,183		3,550,207		(6)
					3,398,183		3,550,207
Chief Power Finance II, LLC		Independent Power Producers & Energy Traders
First Lien Term Loan, LIBOR+6.50% cash due 12/31/2022	7.50%		3,325,000		3,265,964		3,167,063		(6)(15)
					3,265,964		3,167,063
CircusTrix Holdings LLC		Leisure Facilities
First Lien Term Loan, LIBOR+6.75% PIK due 12/16/2021			9,434,200		9,402,902		7,260,560		(6)(15)
					9,402,902		7,260,560
CITGO Petroleum Corp.		Oil & Gas Refining & Marketing
First Lien Term Loan, LIBOR+5.00% cash due 3/28/2024	6.00%		5,387,652		5,333,776		5,131,738		(6)
					5,333,776		5,131,738
Connect U.S. Finco LLC		Alternative Carriers
First Lien Term Loan, LIBOR+4.50% cash due 12/11/2026	5.50%		1,340,037		1,278,156		1,302,355		(6)(9)
					1,278,156		1,302,355
Continental Intermodal Group LP		Oil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+9.50% PIK due 1/28/2025			10,224,899		10,224,899		8,989,731		(6)(15)
Common Stock Warrants expiration date 7/28/2025					—		690,993
					10,224,899		9,680,724
Coyote Buyer, LLC		Specialty Chemicals
First Lien Term Loan, LIBOR+6.00% cash due 2/6/2026	7.00%		5,450,344		5,395,841		5,395,841		(6)(15)
First Lien Revolver, LIBOR+6.00% cash due 2/6/2025			—		(3,913)		(3,913)		(6)(14)(15)
					5,391,928		5,391,928
CPI Holdco, LLC		Health Care Supplies
First Lien Term Loan, LIBOR+4.25% cash due 11/4/2026	4.40%		5,894,380		5,869,505		5,875,960		(6)
					5,869,505		5,875,960
CTOS, LLC		Trading Companies & Distributors
First Lien Term Loan, LIBOR+4.25% cash due 4/18/2025	4.40%		8,731,138		8,827,767		8,671,111		(6)
					8,827,767		8,671,111

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

September 30, 2020


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Curium Bidco S.à.r.l.		Biotechnology
First Lien Term Loan, LIBOR+3.75% cash due 7/9/2026	3.97%		$	3,960,000	$	3,930,300	$	3,930,300	(6)(9)
					3,930,300		3,930,300
Dealer Tire, LLC		Distributors
First Lien Term Loan, LIBOR+4.25% cash due 12/12/2025	4.40%		8,851,404		8,760,175		8,674,375		(6)
					8,760,175		8,674,375
EnergySolutions LLC		Environmental & Facilities Services
First Lien Term Loan, LIBOR+3.75% cash due 5/9/2025	4.75%		3,910,000		3,897,041		3,753,600		(6)
					3,897,041		3,753,600
eResearch Technology, Inc.		Application Software
First Lien Term Loan, LIBOR+4.50% cash due 2/4/2027	5.50%		3,990,000		3,950,100		3,979,187		(6)
					3,950,100		3,979,187
Firstlight Holdco, Inc.		Alternative Carriers
First Lien Term Loan, LIBOR+3.50% cash due 7/23/2025	3.65%		7,084,337		7,059,645		6,827,530		(6)
					7,059,645		6,827,530
Fortress Biotech, Inc.		Biotechnology
First Lien Term Loan, 11.00% cash due 8/27/2025			3,013,000		2,831,219		2,854,818		(9)(15)(18)
87,852 Common Stock Warrants (exercise price $3.20) expiration date 8/27/2030					93,123		151,105		(9)(15)
					2,924,342		3,005,923
GI Chill Acquisition LLC		Managed Health Care
First Lien Term Loan, LIBOR+4.00% cash due 8/6/2025	4.22%		2,969,697		2,947,424		2,917,727		(6)(15)
					2,947,424		2,917,727
GKD Index Partners, LLC		Specialized Finance
First Lien Term Loan, LIBOR+7.00% cash due 6/29/2023	8.00%		8,051,177		8,007,041		7,914,307		(6)(15)
First Lien Revolver, LIBOR+7.00% cash due 6/29/2023	8.00%		355,556		352,069		347,556		(6)(14)(15)
					8,359,110		8,261,863
Global Medical Response		Health Care Services
First Lien Term Loan, LIBOR+4.25% cash due 3/14/2025	5.25%		2,463,340		2,422,270		2,395,598		(6)
					2,422,270		2,395,598
Guidehouse LLP		Research & Consulting Services
First Lien Term Loan, LIBOR+4.50% cash due 5/1/2025	4.65%		2,474,683		2,453,364		2,456,135		(6)
Second Lien Term Loan, LIBOR+8.00% cash due 5/1/2026	8.15%		5,000,000		4,982,443		4,825,000		(6)(15)
					7,435,807		7,281,135
Gulf Operating, LLC		Oil & Gas Storage & Transportation
First Lien Term Loan, LIBOR+5.25% cash due 8/25/2023	6.25%		1,316,869		751,248		934,430		(6)
					751,248		934,430
Helios Software Holdings, Inc.		Systems Software
First Lien Term Loan, LIBOR+4.25% cash due 10/24/2025	4.52%		3,969,690		3,929,993		3,922,570		(6)
					3,929,993		3,922,570
iCIMs, Inc.		Application Software
First Lien Term Loan, LIBOR+6.50% cash due 9/12/2024	7.50%		5,572,549		5,497,575		5,527,968		(6)(15)
First Lien Revolver, LIBOR+6.50% cash due 9/12/2024			—		(4,940)		(2,353)		(6)(14)(15)
					5,492,635		5,525,615
Immucor, Inc.		Health Care Supplies
First Lien Term Loan, LIBOR+5.75% cash due 7/2/2025	6.75%		2,267,567		2,224,475		2,222,215		(6)(15)
First Lien Revolver, LIBOR+5.75% cash due 7/2/2025			—		(3,600)		(3,789)		(6)(14)(15)
Second Lien Term Loan, LIBOR+8.00% cash 3.50% PIK due 10/2/2025	9.00%		5,465,318		5,362,101		5,356,011		(6)(15)
					7,582,976		7,574,437
KIK Custom Products Inc.		Household Products
First Lien Term Loan, LIBOR+4.00% cash due 5/15/2023	5.00%		3,326,063		3,338,452		3,313,557		(6)(9)
					3,338,452		3,313,557

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

September 30, 2020


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Lannett Company, Inc.		Pharmaceuticals
First Lien Term Loan, LIBOR+5.38% cash due 11/25/2022	6.38%		$	6,794,491	$	6,802,553	$	6,692,574	(6)(9)
					6,802,553		6,692,574
Lightbox Intermediate, L.P.		Real Estate Services
First Lien Term Loan, LIBOR+5.00% cash due 5/9/2026	5.15%		9,875,000		9,755,743		9,430,625		(6)(15)
					9,755,743		9,430,625
LogMeIn, Inc.		Application Software
First Lien Term Loan, LIBOR+4.75% cash due 8/31/2027	4.91%		4,000,000		3,900,591		3,873,760		(6)
					3,900,591		3,873,760
MHE Intermediate Holdings, LLC		Diversified Support Services
First Lien Term Loan, LIBOR+5.00% cash due 3/8/2024	6.00%		11,419,753		11,305,654		11,114,846		(6)(15)
First Lien Revolver, LIBOR+5.00% cash due 3/10/2023			—		(228,947)		(140,296)		(6)(14)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.00% cash due 3/8/2024	6.00%		2,325,487		2,351,985		2,263,397		(6)(15)
					13,428,692		13,237,947
Mindbody, Inc.		Internet Services & Infrastructure
First Lien Term Loan, LIBOR+7.00% cash 1.5% PIK due 2/14/2025	8.00%		9,092,898		8,961,003		8,383,652		(6)(15)
First Lien Revolver, LIBOR+8.00% cash due 2/14/2025			—		(13,884)		(75,238)		(6)(14)(15)
					8,947,119		8,308,414
Ministry Brands, LLC		Application Software
First Lien Revolver, LIBOR+5.00% cash due 12/2/2022	6.00%		57,500		56,639		56,650		(6)(14)(15)
Second Lien Term Loan, LIBOR+9.25% cash due 6/2/2023	10.25%		2,000,000		1,985,308		1,982,994		(6)(15)
					2,041,947		2,039,644
MRI Software LLC		Application Software
First Lien Term Loan, LIBOR+5.50% cash due 2/10/2026	6.50%		5,968,744		5,918,189		5,824,509		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash due 2/10/2026			—		(22,352)		(52,991)		(6)(14)(15)
First Lien Revolver, LIBOR+5.50% cash due 2/10/2026			—		(5,283)		(12,765)		(6)(14)(15)
					5,890,554		5,758,753
NeuAG, LLC		Fertilizers & Agricultural Chemicals
First Lien Term Loan, LIBOR+5.50% cash 7.0% PIK due 9/11/2024	7.00%		8,529,688		8,194,410		8,188,501		(6)(15)
First Lien Delayed Draw Term Loan, LIBOR+5.50% cash 7.0% PIK due 9/11/2024					(42,360)		(42,360)		(6)(14)(15)
					8,152,050		8,146,141
Northwest Fiber, LLC		Integrated Telecommunication Services
First Lien Term Loan, LIBOR+5.50% cash due 4/30/2027	5.66%		4,200,473		4,049,552		4,205,723		(6)
					4,049,552		4,205,723
OEConnection LLC		Application Software
First Lien Term Loan, LIBOR+4.00% cash due 9/25/2026	4.15%		7,920,420		7,881,988		7,831,315		(6)
First Lien Delayed Draw Term Loan, LIBOR+4.00% cash due 9/25/2026			—		(2,227)		(5,640)		(6)(14)
					7,879,761		7,825,675
Olaplex, Inc.		Personal Products
First Lien Term Loan, LIBOR+6.50% cash due 1/8/2026	7.50%		8,887,500		8,731,401		8,887,500		(6)(15)
First Lien Revolver, LIBOR+6.50% cash due 1/8/2025	7.50%		486,000		469,401		486,000		(6)(14)(15)
					9,200,802		9,373,500
Onvoy, LLC		Integrated Telecommunication Services
First Lien Term Loan, LIBOR+4.50% cash due 2/10/2024	5.50%		3,821,010		3,811,810		3,668,571		(6)
					3,811,810		3,668,571

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

September 30, 2020


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
PaySimple, Inc.		Data Processing & Outsourced Services
First Lien Term Loan, LIBOR+5.50% cash due 8/23/2025	5.65%		$	9,906,964	$	9,742,150	$	9,560,221	(6)(15)
					9,742,150		9,560,221
Peraton Corp.		Aerospace & Defense
First Lien Term Loan, LIBOR+5.25% cash due 4/29/2024	6.25%		6,288,750		6,272,774		6,241,584		(6)(15)
					6,272,774		6,241,584
PG&E Corporation		Electric Utilities
First Lien Term Loan, LIBOR+4.50% cash due 6/23/2025	5.50%		1,995,000		1,966,495		1,958,422		(6)
					1,966,495		1,958,422
ProFrac Services, LLC		Industrial Machinery
First Lien Term Loan, LIBOR+7.50% cash due 9/15/2023	8.75%		8,289,847		8,240,727		6,362,458		(6)(15)
					8,240,727		6,362,458
Project Boost Purchaser, LLC		Application Software
Second Lien Term Loan, LIBOR+8.00% cash due 5/9/2027	8.15%		1,500,000		1,500,000		1,350,000		(6)(15)
					1,500,000		1,350,000
Pug LLC		Internet & Direct Marketing Retail
First Lien Term Loan, LIBOR+8.00% cash due 2/12/2027	8.75%		5,704,000		5,363,954		5,547,140		(6)
					5,363,954		5,547,140
Recorded Books Inc.		Publishing
First Lien Term Loan, LIBOR+4.00% cash due 8/29/2025	4.16%		9,757,714		9,660,137		9,708,926		(6)
					9,660,137		9,708,926
RevSpring, Inc.		Commercial Printing
First Lien Term Loan, LIBOR+4.25% cash due 10/11/2025	4.47%		9,825,000		9,807,175		9,628,500		(6)(15)
					9,807,175		9,628,500
Sabert Corporation		Metal & Glass Containers
First Lien Term Loan, LIBOR+4.50% cash due 12/10/2026	5.50%		1,885,500		1,866,645		1,860,366		(6)
					1,866,645		1,860,366
Salient CRGT, Inc.		Aerospace & Defense
First Lien Term Loan, LIBOR+6.50% cash due 2/28/2022	7.50%		5,488,244		5,457,684		5,104,067		(6)(15)
					5,457,684		5,104,067
Signify Health, LLC		Health Care Services
First Lien Term Loan, LIBOR+4.50% cash due 12/23/2024	5.50%		10,725,000		10,658,741		10,349,625		(6)
					10,658,741		10,349,625
Sirva Worldwide, Inc.		Diversified Support Services
First Lien Term Loan, LIBOR+5.50% cash due 8/4/2025	5.65%		7,650,000		7,535,250		6,387,750		(6)
					7,535,250		6,387,750
Star US Bidco LLC		Industrial Machinery
First Lien Term Loan, LIBOR+4.25% cash due 3/17/2027	5.25%		5,826,911		5,529,350		5,564,700		(6)
					5,529,350		5,564,700
Supermoose Borrower, LLC		Application Software
First Lien Term Loan, LIBOR+3.75% cash due 8/29/2025	3.90%		1,483,087		1,401,939		1,337,099		(6)
					1,401,939		1,337,099
Trident Topco LLC		Health Care Services
58.99 Class A Warrants (exercise price $156.164) expiration date 3/20/2021					—		—		(15)
					—		—
Truck Hero, Inc.		Auto Parts & Equipment
First Lien Term Loan, LIBOR+3.75% cash due 4/22/2024	3.90%		5,681,160		5,688,828		5,520,667		(6)
					5,688,828		5,520,667
UFC Holdings, LLC		Movies & Entertainment
First Lien Term Loan, LIBOR+3.25% cash due 4/29/2026	4.25%		2,887,362		2,819,945		2,844,961		(6)
					2,819,945		2,844,961

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

September 30, 2020


Portfolio Company/Type of Investment (1)(2)(3)(4)(5)	Cash Interest Rate (6)	Industry	Principal (7)		Cost		Fair Value		Notes
Uniti Group Inc.		Specialized REITs
40,052 Shares of Common Stock					$	253,529	$	421,948	(9)(17)
					253,529		421,948
Veritas US Inc.		Application Software
First Lien Term Loan, LIBOR+5.50% cash due 9/1/2025	6.50%		$	6,000,000	5,880,994		5,885,010		(6)
					5,880,994		5,885,010
Verscend Holding Corp.		Health Care Technology
First Lien Term Loan, LIBOR+4.50% cash due 8/27/2025	4.65%		11,830,827		11,732,318		11,752,447		(6)
					11,732,318		11,752,447
William Morris Endeavor Entertainment, LLC		Movies & Entertainment
First Lien Term Loan, LIBOR+8.50% cash due 5/18/2025	9.50%		8,371,098		7,942,825		8,371,098		(6)(15)
					7,942,825		8,371,098

Windstream Services II, LLC		Integrated Telecommunication Services
First Lien Term Loan, LIBOR+6.25% cash due 9/21/2027	7.25%		5,985,000		5,746,163		5,807,964		(6)
11,903 Shares of Common Stock in Windstream Holdings II, LLC					102,837		134,504		(15)
72,205 Warrants in Windstream Holdings II, LLC					1,785,324		793,624		(15)
					7,634,324		6,736,092
WP CPP Holdings, LLC		Aerospace & Defense
First Lien Term Loan, LIBOR+3.50% cash due 4/30/2025	4.50%		4,411,964		4,404,415		3,886,941		(6)
Second Lien Term Loan, LIBOR+7.75% cash due 4/30/2026	8.75%		1,000,000		992,746		780,000		(6)(15)
					5,397,161		4,666,941
Zep Inc.		Specialty Chemicals
First Lien Term Loan, LIBOR+4.00% cash due 8/12/2024	5.00%		4,607,500		4,632,209		4,349,779		(6)
					4,632,209		4,349,779
Total Non-Control/Non-Affiliate Investments (169.8% of net assets)					$	466,907,805	$	452,883,464
Total Portfolio Investments (188.3% of net assets)					$	539,065,107	$	502,293,365
Cash and Cash Equivalents and Restricted Cash
JP Morgan Prime Money Market Fund, Institutional Shares					$	7,052,674	$	7,052,674
Other cash accounts					22,447,753		22,447,753
Cash and Cash Equivalents and Restricted Cash (11.1% of net assets)					$	29,500,427	$	29,500,427
Total Portfolio Investments, Cash and Cash Equivalents and Restricted Cash (199.4% of net assets)					$	568,565,534	$	531,793,792


Derivatives Instrument	Notional Amount Purchased / (Sold) in U.S. Dollars		Notional Amount Purchased / (Sold) in Local Currency		Maturity Date	Counterparty	Cumulative Unrealized Appreciation (Depreciation)
Foreign currency forward contract	$	529,015	€	(465,600)	11/12/2020	JPMorgan Chase Bank, N.A.	$	(17,450)
Foreign currency forward contract	$	4,613,133	£	(3,654,546)	11/12/2020	JPMorgan Chase Bank, N.A.	$	(112,486)
							$	(129,936)

(1)All debt investments are income producing unless otherwise noted. All equity investments are non-income producing unless otherwise noted.

(2)See Note 3 to the Consolidated Financial Statements for portfolio composition by geographic region.

(5)Equity ownership may be held in shares or units of companies related to the portfolio companies.

(6)The interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g., prime rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset

Oaktree Strategic Income Corporation

Consolidated Schedule of Investments

September 30, 2020

periods for each loan. For each of these loans, the Company has provided the applicable margin over LIBOR or the alternate base rate based on each respective credit agreement and the cash interest rate as of period end. All LIBOR shown above is in U.S. dollars unless otherwise noted. As of September 30, 2020, the reference rates for the Company's variable rate loans were the 30-day LIBOR at 0.15%, the 60-day LIBOR at 0.19%, the 90-day LIBOR at 0.22%, the 180-day LIBOR at 0.27%, the 360-day LIBOR at 0.37%, the PRIME at 3.25%, the 180-day UK LIBOR at 0.22% and the 180-day EURIBOR at (0.36)%. Most loans include an interest floor, which generally ranges from 0% to 1%.

(7)Principal includes PIK interest and is net of repayments, if any. “£” signifies the investment is denominated in British Pounds. "€" signifies the investment is denominated in Euros. All other investments are denominated in U.S. dollars.

(8)Control Investments generally are defined by the Investment Company Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

(9)Investment is not a "qualifying asset" as defined under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of September 30, 2020, qualifying assets represented 83.1% of the Company's total assets and non-qualifying assets represented 16.9% of the Company's total assets.

(10)As defined in the Investment Company Act, the Company is deemed to be both an "Affiliated Person" of and to "Control" this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Schedule 12-14 in the Company's annual report on Form 10-K for the year ended September 30, 2020 for transactions during the year ended September 30, 2020 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to control.

(11)See Note 3 to the Consolidated Financial Statements for portfolio composition.

(12)This investment was valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.

(15)As of September 30, 2020, these investments are categorized as Level 3 within the fair value hierarchy established by ASC 820.

(16)This investment was on cash non-accrual status as of September 30, 2020. Cash non-accrual is inclusive of PIK and other non-cash income, where applicable.

(17) Income producing through payment of dividends or distributions.

(18) The sale of all or a portion of this investment did not qualify for sale accounting under ASC 860, and therefore the investment remains on the Company's Consolidated Schedule of Investments as of September 30, 2020. See Note 6 in the Consolidated Financial Statements for further details.

See notes to Consolidated Financial Statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization

Oaktree Strategic Income Corporation (together with its consolidated subsidiaries, the "Company") is a specialty finance company that looks to provide customized capital solutions for middle-market companies in both the syndicated and private placement markets. The Company was formed in May 2013 and operates as a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a Business Development Company under the Investment Company Act. The Company has qualified and elected to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"), for tax purposes.

The Company's investment objective is to generate a stable source of current income while minimizing the risk of principal loss and, to a lesser extent, capital appreciation by providing innovative first-lien financing solutions to companies across a wide variety of industries. To a lesser extent, the Company may also invest in unsecured loans, including subordinated loans and bonds, issued by private middle-market companies, senior and subordinated loans and bonds issued by public companies and equity investments.

The Company is externally managed by Oaktree Fund Advisors, LLC ("Oaktree"), a subsidiary of Oaktree Capital Group, LLC ("OCG"), pursuant to an investment advisory agreement between the Company and Oaktree (the "Investment Advisory Agreement"). Oaktree is an affiliate of Oaktree Capital Management, L.P. ("OCM"), the Company's external investment adviser from October 17, 2017 through May 3, 2020 and also a subsidiary of OCG. Oaktree Fund Administration, LLC ("Oaktree Administrator"), a subsidiary of OCM, provides certain administrative and other services necessary for the Company to operate pursuant to an administration agreement between the Company and Oaktree Administrator (the "Administration Agreement"). See Note 11. In 2019, Brookfield Asset Management Inc. ("Brookfield") acquired a majority economic interest in OCG. OCG operates as an independent business within Brookfield, with its own product offerings and investment, marketing and support teams.

The Mergers

On October 28, 2020, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Oaktree Specialty Lending Corporation, a Delaware corporation ("OCSL"), Lion Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of OCSL ("Merger Sub"), and, solely for the limited purposes set forth therein, Oaktree, the investment adviser to each of the Company and OCSL. The Merger Agreement provides that, subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the "Effective Time"), Merger Sub will merge with and into the Company, with the Company continuing as the surviving company and as a wholly-owned subsidiary of OCSL (the "Merger") and, immediately thereafter, the Company will merge with and into OCSL, with OCSL continuing as the surviving company (together with the Merger, the "Mergers"). Both the Company’s Board of Directors and the Board of Directors of OCSL, including all of the respective independent directors, in each case, on the recommendation of a special committee comprised solely of certain independent directors of the Company or OCSL, as applicable, have approved the Merger Agreement and the transactions contemplated thereby. For more information about the Mergers, see "Note 15. Pending Merger with OCSL".

Note 2. Significant Accounting Policies

Basis of Presentation:

The Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the Consolidated Financial Statements have been made. All intercompany balances and transactions have been eliminated. The Company is an investment company following the accounting and reporting guidance in FASB ASC Topic 946, Financial Services - Investment Companies ("ASC 946").

Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make certain estimates and assumptions affecting amounts reported in the financial statements and accompanying notes. These estimates are based on the information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Changes in the economic and political environments, financial markets and any other parameters used in determining these estimates could cause actual results to differ and such differences could be material. Significant estimates include the valuation of investments and revenue recognition.

Consolidation:

The accompanying Consolidated Financial Statements include the accounts of Oaktree Strategic Income Corporation and its consolidated subsidiaries. Each consolidated subsidiary is wholly-owned and, as such, consolidated into the Consolidated Financial Statements. Certain subsidiaries that hold investments are treated as pass through entities for tax purposes. The assets of certain of the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

consolidated subsidiaries are not directly available to satisfy the claims of the creditors of Oaktree Strategic Income Corporation or any of its other subsidiaries.

As an investment company, portfolio investments held by the Company are not consolidated into the Consolidated Financial Statements but rather are included on the Statements of Assets and Liabilities as investments at fair value.

Fair Value Measurements:

The Company values its investments in accordance with ASC 820, which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A liability's fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. ASC 820 prioritizes the use of observable market prices over entity-specific inputs. Where observable prices or inputs are not available or reliable, valuation techniques are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the investments or market and the investments' complexity.

Hierarchical levels, defined by ASC 820 and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:

•Level 1 — Unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date.

•Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data at the measurement date for substantially the full term of the assets or liabilities.

•Level 3 — Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

If inputs used to measure fair value fall into different levels of the fair value hierarchy, an investment's level is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. This includes investment securities that are valued using "bid" and "ask" prices obtained from independent third party pricing services or directly from brokers. These investments may be classified as Level 3 because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities or may require adjustments for investment-specific factors or restrictions.

Financial instruments with readily available quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value. As such, Oaktree obtains and analyzes readily available market quotations provided by pricing vendors and brokers for all of the Company's investments for which quotations are available. In determining the fair value of a particular investment, pricing vendors and brokers use observable market information, including both binding and non-binding indicative quotations.

The Company seeks to obtain at least two quotations for the subject or similar securities, typically from pricing vendors. If the Company is unable to obtain two quotes from pricing vendors, or if the prices obtained from pricing vendors are not within the Company's set threshold, the Company seeks to obtain a quote directly from a broker making a market for the asset. Oaktree evaluates the quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. Oaktree also performs back-testing of valuation information obtained from pricing vendors and brokers against actual prices received in transactions. In addition to ongoing monitoring and back-testing, Oaktree performs due diligence procedures over pricing vendors to understand their methodology and controls to support their use in the valuation process. Generally, the Company does not adjust any of the prices received from these sources.

If the quotations obtained from pricing vendors or brokers are determined to not be reliable or are not readily available, the Company values such investments using any of three different valuation techniques. The first valuation technique is the transaction precedent technique, which utilizes recent or expected future transactions of the investment to determine fair value, to the extent applicable. The second valuation technique is an analysis of the enterprise value ("EV") of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The EV analysis is typically performed to determine (i) the value of equity investments, (ii) whether there is credit impairment for debt investments and (iii) the value for debt investments that the Company is deemed to control under the Investment Company Act. To estimate the EV of a portfolio company, Oaktree analyzes various factors, including the portfolio company’s historical and projected financial results, macroeconomic impacts on the company and competitive dynamics in the company’s industry. Oaktree also utilizes some or all of the following information based on the individual circumstances of the portfolio company:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(i) valuations of comparable public companies, (ii) recent sales of private and public comparable companies in similar industries or having similar business or earnings characteristics, (iii) purchase prices as a multiple of their earnings or cash flow, (iv) the portfolio company’s ability to meet its forecasts and its business prospects, (v) a discounted cash flow analysis, (vi) estimated liquidation or collateral value of the portfolio company's assets and (vii) offers from third parties to buy the portfolio company. The Company may probability weight potential sale outcomes with respect to a portfolio company when uncertainty exists as of the valuation date. The third valuation technique is a market yield technique, which is typically performed for non-credit impaired debt investments. In the market yield technique, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk, and the Company considers the current contractual interest rate, the capital structure and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by the Company are substantially illiquid with no active transaction market, the Company depends on primary market data, including newly funded transactions and industry specific market movements, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.

In accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels. These investments are generally not redeemable.

The Company estimates the fair value of privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an EV analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.

The Company's Board of Directors undertakes a multi-step valuation process each quarter in connection with determining the fair value of the Company's investments:

•The quarterly valuation process begins with each portfolio company or investment being initially valued by Oaktree's valuation team in conjunction with Oaktree's portfolio management team and investment professionals responsible for each portfolio investment;

•Preliminary valuations are then reviewed and discussed with management of Oaktree;

•Separately, independent valuation firms engaged by the Board of Directors prepare valuations of the Company's investments, on a selected basis, for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment, and submit the reports to the Company and provide such reports to Oaktree and the Audit Committee of the Board of Directors;

•Oaktree compares and contrasts its preliminary valuations to the valuations of the independent valuation firms and prepares a valuation report for the Audit Committee;

•The Audit Committee reviews the preliminary valuations with Oaktree, and Oaktree responds and supplements the preliminary valuations to reflect any discussions between Oaktree and the Audit Committee;

•The Audit Committee makes a recommendation to the full Board of Directors regarding the fair value of the investments in the Company's portfolio; and

•The Board of Directors discusses valuations and determines the fair value of each investment in the Company's portfolio.

The fair value of the Company's investments as of December 31, 2020 and September 30, 2020 was determined in good faith by the Board of Directors. The Board of Directors has and will continue to engage independent valuation firms to provide assistance regarding the determination of the fair value of a portion of the Company's portfolio securities for which market quotations are not readily available or are readily available but deemed not reflective of the fair value of the investment each quarter, and the Board of Directors may reasonably rely on that assistance. However, the Board of Directors is responsible for the ultimate valuation of the portfolio investments at fair value as determined in good faith pursuant to the Company's valuation policy and a consistently applied valuation process.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the investments existed, and it is reasonably possible that the difference could be material.

With the exception of the line items entitled "deferred financing costs," "deferred offering costs," "other assets," "credit facilities payable" and "secured borrowings" which are reported at amortized cost, all assets and liabilities approximate fair value on the Consolidated Statements of Assets and Liabilities. The carrying value of the line items titled "interest, dividends and fees receivable," "due from portfolio companies," "receivables from unsettled transactions," "accounts payable, accrued expenses and other liabilities,"

OAKTREE STRATEGIC INCOME CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

"base management fee and incentive fee payable," "due to affiliate," "interest payable" and "payables from unsettled transactions" approximate fair value due to their short maturities.

Foreign Currency Translation:

The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the prevailing foreign exchange rate on the reporting date. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.

Derivative Instruments:

The Company does not utilize hedge accounting and as such values its derivative instruments at fair value with the unrealized gains or losses recorded in “net unrealized appreciation (depreciation)” in the Company’s Consolidated Statements of Operations.

Secured Borrowings:

Securities sold and simultaneously repurchased at a premium are reported as financing transactions in accordance with ASC 860. Amounts payable to the counterparty are due on the repurchase settlement date and, excluding accrued interest, such amounts are presented in the accompanying Statements of Assets and Liabilities as secured borrowings. Premiums payable are separately reported as accrued interest.

Investment Income:

Interest Income

Interest income, adjusted for accretion of original issue discount ("OID"), is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on investments when it is determined that interest is no longer collectible. Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when there is reasonable doubt that principal or interest cash payments will be collected. Cash interest payments received on investments may be recognized as income or a return of capital depending upon management’s judgment. A non-accrual investment is restored to accrual status if past due principal and interest are paid in cash and the portfolio company, in management's judgment, is likely to continue timely payment of its remaining obligations.

In connection with its investment in a portfolio company, the Company sometimes receives nominal cost equity that is valued as part of the negotiation process with the portfolio company. When the Company receives nominal cost equity, the Company allocates its cost basis in the investment between debt securities and the nominal cost equity at the time of origination. Any resulting discount from recording the loan, or otherwise purchasing a security at a discount, is accreted into interest income over the life of the loan.

For the Company's secured borrowings, the interest earned on the entire loan balance is recorded within interest income and the interest earned by the counterparty is recorded within interest expense in the Consolidated Statements of Operations.

PIK Interest Income

The Company's investments in debt securities may contain PIK interest provisions. PIK interest, which generally represents contractually deferred interest added to the loan balance that is generally due at the end of the loan term, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. The Company generally ceases accruing PIK interest if there is insufficient value to support the accrual or if the Company does not expect the portfolio company to be able to pay all principal and interest due. The Company's decision to cease accruing PIK interest on a loan or debt security involves subjective judgments and determinations based on available information about a particular portfolio company, including whether the portfolio company is current with respect to its payment of principal and interest on its loans and debt securities; financial statements and financial projections for the portfolio company; the Company's assessment of the portfolio company's business development success; information obtained by the Company in connection with periodic formal update interviews with the portfolio company's management and, if appropriate, the private equity sponsor; and information about the general economic and market conditions in which the portfolio company operates. The Company's determination to cease accruing PIK interest is generally made well before the Company's full write-down of a loan or debt security. In addition, if it is subsequently determined that the Company will not be able to collect any previously accrued PIK interest, the

OAKTREE STRATEGIC INCOME CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

fair value of the loans or debt securities would be reduced by the amount of such previously accrued, but uncollectible, PIK interest. The accrual of PIK interest on the Company’s debt investments increases the recorded cost bases of these investments in the Consolidated Financial Statements including for purposes of computing the capital gains incentive fee payable by the Company to Oaktree. To maintain its status as a RIC, certain income from PIK interest may be required to be distributed to the Company’s stockholders, even though the Company has not yet collected the cash and may never do so.

Fee Income

Oaktree or its affiliates may provide financial advisory services to portfolio companies, and in return, the Company may receive fees for capital structuring services. These fees are generally nonrecurring and are recognized by the Company upon the investment closing date. The Company may also receive additional fees in the ordinary course of business, including servicing, amendment and prepayment fees, which are classified as fee income and recognized as they are earned or the services are rendered.

The Company has also structured exit fees across certain of its portfolio investments to be received upon the future exit of those investments. These fees are typically paid to the Company upon the earliest to occur of (i) a sale of the borrower or substantially all of the assets of the borrower, (ii) the maturity date of the loan or (iii) the date when full prepayment of the loan occurs. The receipt of such fees is contingent upon the occurrence of one of the events listed above for each of the investments. These fees are included in net investment income over the life of the loan.

Dividend Income

The Company generally recognizes dividend income on the ex-dividend date for public securities and the record date for private equity investments. Distributions received from private equity investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from private equity investments as dividend income unless there are sufficient earnings at the portfolio company prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

Cash and Cash Equivalents and Restricted Cash:

Cash and cash equivalents and restricted cash consist of demand deposits and highly liquid investments with maturities of three months or less when acquired. The Company places its cash and cash equivalents and restricted cash with financial institutions and, at times, cash held in bank accounts may exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limit. Cash and cash equivalents and restricted cash are included on the Company's Consolidated Schedule of Investments and cash equivalents are classified as Level 1 assets.

As of December 31, 2020, included in restricted cash was $4.0 million that was held at Wells Fargo Bank, N.A. in connection with the Company's Citibank Facility and Deutsche Bank Facility (each as defined in Note 6 – Borrowings), and $0.3 million that was held at U.S. Bank National Association as collateral in connection with the ISDA Master Agreement (as defined in Note 13 – Derivative Instruments) with JPMorgan Chase Bank N.A. Of the $4.0 million of restricted cash held at Wells Fargo Bank, N.A., pursuant to the terms of the Citibank Facility, the Company was restricted in terms of access to $2.1 million of that amount until the occurrence of the periodic distribution dates and, in connection therewith, the Company’s submission of its required periodic reporting schedules and verifications of the Company’s compliance with the terms of the credit agreement. As of December 31, 2020, the remaining $1.9 million of cash held at Wells Fargo Bank, N.A. was restricted due to the obligation to pay interest under the terms of the Deutsche Bank Facility.

As of September 30, 2020, included in restricted cash was $4.1 million that was held at Wells Fargo Bank, N.A. in connection with the Company's Citibank Facility and Deutsche Bank Facility, and $0.3 million that was held at U.S. Bank National Association as collateral in connection with the ISDA Master Agreement with JPMorgan Chase Bank N.A. Of the $4.1 million of restricted cash held at Wells Fargo Bank, N.A., pursuant to the terms of the Citibank Facility, the Company was restricted in terms of access to $2.0 million of that amount until the occurrence of the periodic distribution dates and, in connection therewith, the Company’s submission of its required periodic reporting schedules and verifications of the Company’s compliance with the terms of the credit agreement. As of September 30, 2020, the remaining $2.1 million of cash held at Wells Fargo Bank, N.A. was restricted due to the obligation to pay interest under the terms of the Deutsche Bank Facility.

Due from Portfolio Companies:

Due from portfolio companies consists of amounts payable to the Company from its portfolio companies, including proceeds from the sale of portfolio companies not yet received or being held in escrow and excluding those amounts attributable to interest, dividends or fees receivable. These amounts are recognized as they become payable to the Company (e.g., principal payments on the scheduled amortization payment date).

OAKTREE STRATEGIC INCOME CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Receivables/Payables from Unsettled Transactions:

Receivables/payables from unsettled transactions consist of amounts receivable to or payable by the Company for transactions that have not settled at the reporting date.

Deferred Financing Costs:

Deferred financing costs consist of fees and expenses paid in connection with the closing or amending of credit facilities and debt offerings. Deferred financing costs in connection with credit facilities are capitalized as an asset when incurred. Deferred financing costs in connection with all other debt arrangements are a direct deduction from the related debt liability when incurred. Deferred financing costs are amortized using the effective interest method over the term of the respective debt arrangement. This amortization expense is included in interest expense in the Company's Consolidated Statements of Operations. Upon early termination or modification of a credit facility, all or a portion of unamortized fees related to such facility may be accelerated into interest expense.

Deferred Offering Costs:

Legal fees and other costs incurred in connection with the Company’s shelf registration statement are capitalized as deferred offering costs in the Consolidated Statements of Assets and Liabilities. To the extent any such costs relate to equity offerings, these costs are charged as a reduction of capital upon utilization. To the extent any such costs relate to debt offerings, these costs are treated as deferred financing costs and are amortized over the term of the respective debt arrangement. Any deferred offering costs that remain at the expiration of the shelf registration statement or when it becomes probable that an offering will not be completed are expensed.

Income Taxes:

The Company has elected to be subject to tax as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. In order to be subject to tax as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute dividends to its stockholders of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each taxable year. As a RIC, the Company is not subject to federal income tax on the portion of its taxable income and gains distributed currently to stockholders as a dividend. Depending on the level of taxable income earned during a taxable year, the Company may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable income in the next taxable year. The Company would then incur a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. The Company anticipates timely distribution of its taxable income within the tax rules under Subchapter M of the Code. The Company did not incur a U.S. federal excise tax for calendar year 2019 and 2020 and does not expect to incur a U.S. federal excise tax for calendar year 2021.

The Company may hold certain portfolio investments through taxable subsidiaries. The purpose of a taxable subsidiary is to permit the Company to hold equity investments in portfolio companies which are "pass through" entities for U.S. federal income tax purposes in order to comply with the RIC tax requirements. The taxable subsidiaries are consolidated for financial reporting purposes, and portfolio investments held by them are included in the Company’s Consolidated Financial Statements as portfolio investments and recorded at fair value. The taxable subsidiaries are not consolidated with the Company for U.S. federal income tax purposes and may generate income tax expense, or benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. This income tax expense, if any, would be reflected in the Company's Consolidated Statements of Operations. The Company uses the liability method to account for its taxable subsidiaries' income taxes. Using this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between financial reporting and tax bases of assets and liabilities. In addition, the Company recognizes deferred tax benefits associated with net operating loss carry forwards that it may use to offset future tax obligations. The Company measures deferred tax assets and liabilities using the enacted tax rates expected to apply to taxable income in the years in which it expects to recover or settle those temporary differences.

FASB ASC Topic 740, Accounting for Uncertainty in Income Taxes ("ASC 740"), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the Company's Consolidated Financial Statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management's determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including an ongoing analysis of tax laws, regulations and interpretations thereof. The Company recognizes the tax benefits of uncertain tax positions only where the position is

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

"more likely than not" to be sustained assuming examination by tax authorities. Management has analyzed the Company's tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2018, 2019 and 2020. The Company identifies its major tax jurisdictions as U.S. Federal and California, and the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Note 3. Portfolio Investments

As of December 31, 2020, 188.5% of net assets at fair value, or $521.0 million, was invested in 78 portfolio companies, including 19.3% of net assets, or $53.4 million at fair value, in subordinated notes and limited liability company ("LLC") equity interests of OCSI Glick JV LLC (together with its consolidated subsidiaries, the "OCSI Glick JV"), a joint venture through which the Company and GF Equity Funding 2014 LLC ("GF Equity Funding") co-invest primarily in senior secured loans of middle-market companies, and 6.5% of net assets, or $17.9 million, was invested in cash and cash equivalents (including $4.3 million of restricted cash). In comparison, as of September 30, 2020, 188.3% of net assets at fair value, or $502.3 million, was invested in 78 portfolio companies, including 18.5% of net assets, or $49.4 million at fair value, in subordinated notes and LLC equity interests of the OCSI Glick JV, and 11.1% of net assets, or $29.5 million, was invested in cash and cash equivalents (including $4.4 million of restricted cash). As of December 31, 2020, 89.3% of the Company's portfolio at fair value consisted of senior secured debt investments, 10.2% consisted of investments in the subordinated notes of the OCSI Glick JV ("the Subordinated Notes") and 0.5% consisted of equity investments. As of September 30, 2020, 89.7% of the Company's portfolio at fair value consisted of senior secured debt investments, 9.8% consisted of investments in the Subordinated Notes of the OCSI Glick JV and 0.5% consisted of equity investments.

As of December 31, 2020 and September 30, 2020, the Company's equity investments consisted of LLC equity interests, common stock and warrants in portfolio companies. These instruments generally do not produce a current return but are held for potential investment appreciation and capital gain.

During each of the three months ended December 31, 2020 and 2019, the Company recorded net realized losses of $0.5 million. During the three months ended December 31, 2020 and 2019, the Company recorded net unrealized appreciation of $10.5 million and $1.9 million, respectively.

The composition of the Company's investments as of December 31, 2020 and September 30, 2020 at cost and fair value was as follows:


	December 31, 2020				September 30, 2020
	Cost		Fair Value		Cost		Fair Value
Senior secured loans	$	473,967,760	$	465,410,058	$	464,459,378	$	450,508,104
OCSI Glick JV Subordinated Notes	64,045,551		53,365,955		65,045,551		49,409,901
OCSI Glick JV equity interests	7,111,751		—		7,111,751		—
Equity securities, excluding the OCSI Glick JV	2,066,053		2,220,273		2,448,427		2,375,360
Total	$	547,191,115	$	520,996,286	$	539,065,107	$	502,293,365

The following table presents the composition of the Company's debt investments as of December 31, 2020 and September 30, 2020 at floating rates and fixed rates:


	December 31, 2020				September 30, 2020
	Fair Value		% of Debt Portfolio		Fair Value		% of Debt Portfolio
Floating rate debt securities, including debt investments in the OCSI Glick JV	$	507,914,781	97.91	%	$	490,506,890	98.12	%
Fixed rate debt securities	10,861,232		2.09	%	9,411,115		1.88	%
Total	$	518,776,013	100.00	%	$	499,918,005	100.00	%

OAKTREE STRATEGIC INCOME CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the financial instruments carried at fair value as of December 31, 2020 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:


	Level 1		Level 2		Level 3		Total
Senior secured loans	$	—	$	191,206,823	$	274,203,235	$	465,410,058
OCSI Glick JV Subordinated Notes	—		—		53,365,955		53,365,955
Equity securities	—		—		2,220,273		2,220,273
Total investments at fair value	—		191,206,823		329,789,463		520,996,286
Cash equivalents	1,773,458		—		—		1,773,458

Total assets at fair value	$	1,773,458	$	191,206,823	$	329,789,463	$	522,769,744
Derivative liability	$	—	$	174,231	$	—	$	174,231
Total liabilities at fair value	$	—	$	174,231	$	—	$	174,231

The following table presents the financial instruments carried at fair value as of September 30, 2020 on the Company's Consolidated Statement of Assets and Liabilities for each of the three levels of hierarchy established by ASC 820:


	Level 1		Level 2		Level 3		Total
Senior secured loans	$	—	$	207,278,600	$	243,229,504	$	450,508,104
OCSI Glick JV Subordinated Notes	—		—		49,409,901		49,409,901
Equity securities	421,948		—		1,953,412		2,375,360
Total investments at fair value	421,948		207,278,600		294,592,817		502,293,365
Cash equivalents	7,052,674		—		—		7,052,674

Total assets at fair value	$	7,474,622	$	207,278,600	$	294,592,817	$	509,346,039
Derivative liability	$	—	$	129,936	$	—	$	129,936
Total liabilities at fair value	$	—	$	129,936	$	—	$	129,936

When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the fact that the unobservable factors are significant to the overall fair value measurement. However, Level 3 financial instruments typically have both unobservable or Level 3 components and observable components (i.e. components that are actively quoted and can be validated by external sources). Accordingly, the appreciation (depreciation) in the tables below includes changes in fair value due in part to observable factors that are part of the valuation methodology. Transfers between levels are recognized at the beginning of the reporting period.

The following table provides a roll-forward in the changes in fair value from September 30, 2020 to December 31, 2020 for all investments for which the Company determined fair value using unobservable (Level 3) factors:


	Investments

	Senior Secured Loans		OCSI Glick JV Subordinated Notes		Equity Securities		Total Investments
Fair value as of September 30, 2020	$	243,229,504	$	49,409,901	$	1,953,412	$	294,592,817
Purchases	33,215,192		—		—		33,215,192
Sales and repayments	(6,615,503)		(1,000,000)		(128,968)		(7,744,471)
Transfers in (a)	1,504,945		—		—		1,504,945

PIK interest income	1,003,444		—		—		1,003,444
Accretion of OID	247,476		—		—		247,476
Net unrealized appreciation (depreciation)	1,842,152		4,956,054		395,829		7,194,035
Net realized gains (losses)	(223,975)		—		—		(223,975)
Fair value as of December 31, 2020	$	274,203,235	$	53,365,955	$	2,220,273	$	329,789,463
Net unrealized appreciation (depreciation) relating to Level 3 assets still held as of December 31, 2020 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended December 31, 2020	$	1,649,151	$	4,956,054	$	(564,327)	$	6,040,878

OAKTREE STRATEGIC INCOME CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

__________

(a)There were transfers into Level 3 from Level 2 for certain investments during the three months ended December 31, 2020 as a result of a change in the number of market quotes available and/or a change in market liquidity.

The following table provides a roll-forward in the changes in fair value from September 30, 2019 to December 31, 2019 for all investments for which the Company determined fair value using unobservable (Level 3) factors:


	Investments

	Senior Secured Debt		OCSI Glick JV Subordinated Notes		Equity Securities		Total Investments
Fair value as of September 30, 2019	$	181,884,463	$	54,326,418	$	293,339	$	236,504,220
Purchases	15,315,401		—		—		15,315,401
Sales and repayments	(11,579,014)		(21,640)		—		(11,600,654)
Transfers in (a)	6,661,922		—		—		6,661,922

Accretion of OID	160,497		—		—		160,497
Net unrealized appreciation (depreciation)	57,006		(135,068)		—		(78,062)
Net realized gains (losses)	(289,521)		—		—		(289,521)
Fair value as of December 31, 2019	$	192,210,754	$	54,169,710	$	293,339	$	246,673,803
Net unrealized appreciation (depreciation) relating to Level 3 assets still held as of December 31, 2019 and reported within net unrealized appreciation (depreciation) in the Consolidated Statement of Operations for the three months ended December 31, 2019	$	(41,958)	$	(135,068)	$	—	$	(177,026)

__________

(a)There were transfers into Level 3 from Level 2 for certain investments during the three months ended December 31, 2019 as a result of a change in the number of market quotes available and/or a change in market liquidity.

Significant Unobservable Inputs for Level 3 Investments

The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value as of December 31, 2020:

Asset

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted
Average (a)

Senior Secured Loans

170,975,451

Market Yield

(b)

6.9%

18.0%

10.8%

89,869,218

Broker Quotations

Broker Quoted Price

(c)

N/A

6,320,826

Transactions Precedent

Transaction Price

(d)

N/A

7,037,740

Enterprise Value

EBITDA Multiple

(e)

7.0x

9.0x

8.0x

OCSI Glick JV Subordinated Notes

53,365,955

Enterprise Value

N/A

(f)

N/A

Equity Securities

1,328,707

Enterprise Value

EBITDA Multiple

(e)

3.0x

5.0x

4.0x

891,566

Enterprise Value

Revenue Multiple

(e)

1.7x

6.4x

2.7x

Total

329,789,463

_____________________

(a) Weighted averages are calculated based on fair value of investments.

(b) Used when market participants would take into account market yield when pricing the investment.

(c) The Company generally uses prices provided by an independent pricing service which are non-binding indicative prices on or near the valuation date as the primary basis for the fair value determinations for quoted senior secured debt investments. Since these prices are non-binding, they may not be indicative of fair value. The Company evaluates the quotations provided by pricing vendors and brokers based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably

OAKTREE STRATEGIC INCOME CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

estimated. Each quoted price is evaluated by the Audit Committee of the Company's Board of Directors in conjunction with additional information compiled by Oaktree.

(d) Used when there is an observable transaction or pending event for the investment.

(e) Used when market participants would use such multiples when pricing the investment.

(f) The Company determined the value of the Subordinated Notes based on the total assets less the total liabilities senior to the subordinated notes held at the OCSI Glick JV in an amount not exceeding par under the EV technique.

The following table provides quantitative information related to the significant unobservable inputs for Level 3 investments, which are carried at fair value as of September 30, 2020:

Asset

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted
Average (a)

Senior Secured Loans

157,196,179

Market Yield

(b)

6.6%

16.0%

11.0%

78,772,765

Broker Quotations

Broker Quoted Price

(c)

N/A

7,260,560

Enterprise Value

EBITDA Multiple

(d)

7.0x

9.0x

8.0x

OCSI Glick JV Subordinated Notes

49,409,901

Enterprise Value

N/A

(e)

N/A

Equity Securities

1,953,412

Transactions Precedent

Transaction Price

(f)

N/A

Total

294,592,817

_____________________

(a) Weighted averages are calculated based on fair value of investments.

(b) Used when market participants would take into account market yield when pricing the investment.

(d) Used when market participants would use such multiples when pricing the investment.

(e) The Company determined the value of the Subordinated Notes based on the total assets less the total liabilities senior to the subordinated notes held at the OCSI Glick JV in an amount not exceeding par under the EV technique.

(f) Used when there is an observable transaction or pending event for the investment.

Under the market yield technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt securities is the market yield. Increases or decreases in the market yield may result in a lower or higher fair value measurement, respectively.

Under the EV technique, the significant unobservable input used in the fair value measurement of the Company's investments in debt or equity securities is the earnings before interest, taxes, depreciation and amortization ("EBITDA"), revenue or asset multiple, as applicable. Increases or decreases in the valuation multiples in isolation may result in a higher or lower fair value measurement, respectively.

Financial Instruments Disclosed, But Not Carried, At Fair Value

The following table presents the carrying value and fair value of the Company’s financial liabilities disclosed, but not carried, at fair value as of December 31, 2020 and the level of each financial liability within the fair value hierarchy:


	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Citibank Facility payable	$	121,056,800	$	121,056,800	$	—	$	—	$	121,056,800
Deutsche Bank Facility payable	131,700,000		131,700,000		—		—		131,700,000

Total	$	252,756,800	$	252,756,800	$	—	$	—	$	252,756,800

OAKTREE STRATEGIC INCOME CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the carrying value and fair value of the Company’s financial liabilities disclosed, but not carried, at fair value as of September 30, 2020 and the level of each financial liability within the fair value hierarchy:


	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Citibank Facility payable	$	119,056,800	$	119,056,800	$	—	$	—	$	119,056,800
Deutsche Bank Facility payable	137,600,000		137,600,000		—		—		137,600,000
Secured borrowings payable	10,929,578		10,929,578		—		—		10,929,578
Total	$	267,586,378	$	267,586,378	$	—	$	—	$	267,586,378

The principal values of the credit facilities payable approximate their fair values due to their variable interest rates and are included in Level 3 of the hierarchy. The principal value of the secured borrowings payable approximates fair value due to its short-term nature and is included in Level 3 of the hierarchy.

Portfolio Composition

Summaries of the composition of the Company's portfolio at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets are shown in the following tables:


	December 31, 2020				September 30, 2020
Cost:			% of Total Investments				% of Total Investments
Senior secured loans	$	473,967,760	86.62	%	$	464,459,378	86.16	%
OCSI Glick JV Subordinated Notes	64,045,551		11.70	%	65,045,551		12.07	%
OCSI Glick JV equity interests	7,111,751		1.30	%	7,111,751		1.32	%
Equity securities, excluding the OCSI Glick JV	2,066,053		0.38	%	2,448,427		0.45	%
Total	$	547,191,115	100.00	%	$	539,065,107	100.00	%


	December 31, 2020					September 30, 2020
Fair Value:			% of Total Investments		% of Net Assets			% of Total Investments		% of Net Assets
Senior secured loans	$	465,410,058	89.33%		168.37%	$	450,508,104	89.69%		168.89%
OCSI Glick JV Subordinated Notes	53,365,955		10.24%		19.30%	49,409,901		9.84%		18.53%
Equity securities, excluding the OCSI Glick JV	2,220,273		0.43%		0.79%	2,375,360		0.47%		0.90%
OCSI Glick JV equity interests	—		—		—	—		—		—
Total	$	520,996,286	100.00	%	188.46%	$	502,293,365	100.00	%	188.32%

OAKTREE STRATEGIC INCOME CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company's business. The following tables show the composition of the Company's portfolio by geographic region at cost as a percentage of total investments and at fair value as a percentage of total investments and net assets:


	December 31, 2020			September 30, 2020
Cost:			% of Total Investments			% of Total Investments
Northeast	$	179,307,316	32.77%	$	175,000,822	32.46%
West	101,781,073		18.60%	107,100,584		19.87%
Midwest	92,661,386		16.93%	88,346,293		16.39%
Southwest	60,162,772		10.99%	60,351,662		11.20%
Southeast	51,885,947		9.48%	43,464,437		8.06%
International	23,513,817		4.30%	25,852,696		4.80%
South	23,294,123		4.26%	24,369,729		4.52%
Northwest	14,584,681		2.67%	14,578,884		2.70%
Total	$	547,191,115	100.00%	$	539,065,107	100.00%


	December 31, 2020				September 30, 2020
Fair Value:			% of Total Investments	% of Net Assets			% of Total Investments	% of Net Assets
Northeast	$	160,700,350	30.86%	58.13%	$	150,734,661	30.00%	56.52%
West	101,093,534		19.40%	36.58%	104,906,992		20.89%	39.33%
Midwest	91,413,800		17.55%	33.07%	85,420,874		17.01%	32.04%
Southwest	55,453,484		10.64%	20.06%	55,716,384		11.09%	20.89%

Oaktree Strategic Income Corp 10-Q