Regular Quarterly Dividend of $0.31 Per Share Declared for First Quarter 2021

Board of Directors Declared Supplemental Cash Dividend of $0.07 Per Share

EVANSTON, Ill., Feb. 25, 2021 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Financial Highlights

• Total investment income of $23.6 million
• Net investment income of $6.0 million, or $0.25 per share
• Adjusted net investment income of $10.7 million, or $0.44 per share⁽¹⁾
• Net increase in net assets resulting from operations of $29.5 million, or $1.20 per share
• Invested $103.9 million in debt and equity securities, including seven new portfolio companies
• Received proceeds from repayments and realizations of $100.7 million
• Paid supplemental dividend of $0.04 per share and regular quarterly dividend of $0.30 per share on December 18, 2020
• Net asset value (“NAV”) of $410.8 million, or $16.81 per share, as of December 31, 2020

Full Year 2020 Financial Highlights

• Total investment income of $85.1 million
• Net investment income of $39.6 million, or $1.62 per share
• Adjusted net investment income of $38.0 million, or $1.55 per share⁽¹⁾
• Net increase in net assets resulting from operations of $31.2 million, or $1.28 per share  
• Invested $190.0 million in debt and equity securities, including 12 new portfolio companies
• Received proceeds from repayments and realizations of $210.8 million
• Paid regular dividends totaling $1.29 per share and a supplemental dividend of $0.04 per share
• Estimated spillover income (or taxable income in excess of distributions) as of December 31, 2020 of $22.0 million, or $0.90 per share

Management Commentary

“The fourth quarter brought to a close a challenging year that nevertheless showcased the success of our strategy of selectively investing in lower middle market companies with resilient business models. On the continued strength of our overall portfolio, NAV per share increased 5.5% compared to the third quarter and we ended the year with NAV per share of $16.81, nearly back to the level at the beginning of the year despite COVID-related write-downs in the first quarter,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation. “Having moderated deal activity earlier in the year out of an abundance of caution due to the pandemic, we had a very busy fourth quarter and closed investments totaling $103.9 million, including investments in seven new portfolio companies. Our adherence to our underwriting disciplines and on managing the business for the long term continue to support our goals of generating attractive risk adjusted returns from our debt and equity investments and preserving capital in the interests of our shareholders.”  

      (1)   Supplemental information regarding adjusted net investment income:

On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.

Fourth Quarter 2020 Financial Results

The following table provides a summary of our operating results for the three months ended December 31, 2020 as compared to the same period in 2019 (dollars in thousands, except per share data):

		Three Months Ended December 31,
			2020			2019		$ Change				% Change
Interest income		$	18,424		$	16,943		$	1,481			8.7	%
Payment-in-kind interest income			1,149			1,262			(113	)		(9.0	%)
Dividend income			1,842			536			1,306			243.7	%
Fee income			2,215			761			1,454			191.1	%
Interest on idle funds			-			5			(5	)		(100.0	%)
Total investment income		$	23,630		$	19,507		$	4,123			21.1	%
Net investment income		$	6,038		$	5,365		$	673			12.5	%
Net investment income per share		$	0.25		$	0.22		$	0.03			13.6	%
Adjusted net investment income (1)		$	10,734		$	8,291		$	2,443			29.5	%
Adjusted net investment income per share (1)		$	0.44		$	0.34		$	0.10			29.4	%
Net increase (decrease) in net assets resulting from operations		$	29,517		$	19,997		$	9,520			47.6	%
Net increase (decrease) in net assets resulting from operations per share		$	1.19		$	0.82		$	0.37			45.1	%

The $4.1 million increase in total investment income for the three months ended December 31, 2020 as compared to the same period in 2019 was primarily attributable to (i) a $1.3 million increase in fee income resulting from an increase in prepayment fees and structuring fees on new investments as well as an increase in amendment fees, (ii) a $1.4 million increase in total interest income resulting from higher average debt investment balances outstanding and an increase in weighted average debt yield, and (iii) a $1.3 million increase in dividend income.

For the three months ended December 31, 2020, total expenses, including income tax provision, were $17.6 million, an increase of $3.5 million, or 24.4%, from the $14.1 million of total expenses, including income tax provision, for the three months ended December 31, 2019. The increase was primarily attributable to (i) a $1.8 million increase in capital gains incentive fee accrued and a $1.1 million increase in income incentive fee accrued, (ii) a $0.3 million increase in general and administrative expenses, (iii) a $0.1 million increase in interest and financing expenses due to an increase in average borrowings outstanding and an increase in weighted average interest rate on borrowings, and (iv) a $0.1 million decrease in the base management fee due to lower average total assets.

Net investment income increased by $0.7 million, or 12.5%, to $6.0 million during the three months ended December 31, 2020 as compared to the same period in 2019, as a result of the $4.1 million increase in total investment income and the $3.5 million increase in total expenses, including income tax provision. Adjusted net investment income⁽¹⁾, which excludes the capital gains incentive fee accrual, increased by $2.4 million, or 29.5%, to $10.7 million.

For the three months ended December 31, 2020, the total net realized loss on investments, net of income tax provision on realized gains, was $(33.4) million, as compared to total net realized loss on investments, net of income tax provision on realized gains, of $(9.9) million for the same period in 2019.

Full Year 2020 Financial Results

The following table provides a summary of our operating results for the year ended December 31, 2020 as compared to the same period in 2019 (dollars in thousands, except per share data):

			Years Ended December 31,
			2020			2019		$ Change				% Change
Interest income		$	73,495		$	62,175		$	11,320			18.2	%
Payment-in-kind interest income			4,660			9,100			(4,440	)		(48.8	%)
Dividend income			2,467			1,424			1,043			73.2	%
Fee income			4,492			4,324			168			3.9	%
Interest on idle funds			9			83			(74	)		(89.2	%)
Total investment income		$	85,123		$	77,106		$	8,017			10.4	%
Net investment income		$	39,648		$	31,969		$	7,679			24.0	%
Net investment income per share		$	1.62		$	1.31		$	0.31			23.7	%
Adjusted net investment income (1)		$	37,964		$	35,268		$	2,696			7.6	%
Adjusted net investment income per share (1)		$	1.55		$	1.44		$	0.11			7.6	%
Net increase in net assets resulting from operations		$	31,226		$	48,466		$	(17,240	)		(35.6	%)
Net increase in net assets resulting from operations per share		$	1.28		$	1.98		$	(0.70	)		(35.4	%)

The $8.0 million increase in total investment income for the year ended December 31, 2020 as compared to the same period in 2019 was primarily attributable to (i) a $6.9 million increase in total interest income resulting from higher average debt investment balances outstanding and an increase in weighted average debt investment yield, (ii) a $ 1.0 million increase in dividend income due to increased levels of distributions received from equity investments, and (iii) a $0.2 million increase in fee income resulting from an increase in debt amendments partially offset by a decrease in origination and prepayment fee income.

For the year ended December 31, 2020, total expenses, including the incentive fee waiver and income tax provision, were $45.5 million, an increase of $0.4 million or 0.7%, from the $45.1 million of total expenses, including income tax provision, for the year ended December 31, 2019. The increase was primarily attributable to (i) a $2.6 million increase in interest and financing expenses due to an increase in average borrowings outstanding and an increase in weighted average interest rate on borrowings, (ii) a $1.2 million increase in income incentive fees offset by a $(5.0) million decrease in capital gains incentive fees, (iii) a $0.6 million increase in general and administrative expenses and (iv) a $0.5 million increase in base management fees due to higher average total assets.

Net investment income increased by $7.7 million, or 24.0%, to $39.6 million during the year ended December 31, 2020 as compared to the same period in 2019, as a result of the $8.0 million increase in total investment income, partially offset by a $0.4 million increase in total expenses, including the incentive fee waiver and income tax provision. Adjusted net investment income⁽¹⁾, which excludes the capital gains incentive fee accrual, increased by $2.7 million, or 7.6%, to $38.0 million.

For the year ended December 31, 2020, the total net realized loss on investments, net of income tax provision on realized gains, was $(1.5) million, as compared to total net realized loss on investments, net of income tax provision on realized gains, of $(1.3) million for the same period in 2019.

Portfolio and Investment Activities

As of December 31, 2020, the fair value of our investment portfolio totaled $742.9 million and consisted of 66 active portfolio companies and three portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 108.1% of the related cost basis as of December 31, 2020. As of December 31, 2020, 22 portfolio company’s debt investments bore interest at a variable rate, which represented $230.9 million, or 36.8%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of December 31, 2020, our average active portfolio company investment at amortized cost was $10.4 million, which excludes investments in the three portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 12.2% as of December 31, 2020. The weighted average yield was computed using the effective interest rates for debt investments at cost as of December 31, 2020, including the accretion of OID and loan origination fees, but excluding investments on non-accrual status, if any.

Fourth quarter 2020 investment activity included the following new portfolio company investments:

• Applied Data Corporation, a leading provider of fresh item management technology for grocery and convenience stores. Fidus invested $9.1 million in first lien debt, common equity, and preferred equity.
  
  
• Comply365, LLC, a leading provider of SaaS enterprise content and compliance management solutions for the aviation and rail markets. Fidus invested $11.0 million in first lien debt and common equity.
  
  
• Dataguise, Inc., a provider of automated data discovery, classification, protection, and continuous monitoring software. Fidus invested $21.5 million in first lien debt and common equity.
  
  
• Elements Brands, LLC, a E-commerce platform dedicated to developing consumer products brands. Fidus invested $8.2 million in first lien and revolving debt.
  
  
• Hallmark Health Care Solutions, Inc., a software-as-a-service company offering physician compensation and workforce management solutions for health systems, academic medical centers and physician groups. Fidus invested $9.3 million in first lien debt and common equity.
  
  
• Healthfuse, LLC, a leading provider of revenue cycle vendor management solutions to hospitals and health systems. Fidus invested $6.8 million in first lien debt and preferred equity.
  
  
• Pool & Electrical Products, LLC, a leading regional distributor of pool equipment and supplies. Fidus invested $13.5 million in second lien debt and common equity.
  

As of December 31, 2020, we had debt investments in one portfolio company on PIK only non-accrual status, which had an aggregate cost and fair value of $9.2 million and $5.5 million, respectively.

Liquidity and Capital Resources

As of December 31, 2020, we had $124.3 million in cash and cash equivalents and $100.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). As of December 31, 2020, we had SBA debentures outstanding of $147.0 million, $50.0 million outstanding of our 5.875% notes due 2023 (the “2023 Notes”), $69.0 million outstanding of our 6.000% notes due 2024, $63.3 million outstanding of our 5.375% notes due 2024 (the “November 2024 Notes” and collectively with the 2023 Notes and February 2024 Notes, the “Public Notes”), $125.0 million outstanding of our 4.750% notes due 2026 (the “2026 Notes” and collectively with the Public Notes the “Notes”), and $0.0 million outstanding under our Credit Facility. As of December 31, 2020, the weighted average interest rate on total debt outstanding was 4.7%.

Subsequent Events

On January 11, 2021, we exited our debt investment in Bandon Fitness (Texas), Inc. We received payment in full of $15.6 million on our first lien debt, which includes a prepayment fee.

On January 14, 2021, we exited our debt investment in Alzheimer’s Research and Treatment Center, LLC. We received payment in full of $6.6 million on our first lien debt, which includes a prepayment fee.

On January 19, 2021, we redeemed $50.0 million of the aggregate principal amount on the 2023 Notes, resulting in a realized loss on extinguishment of debt of approximately $0.8 million.

On January 22, 2021, we invested $11.0 million in first lien debt and $0.5 million in common equity of GP&C Operations, LLC (dba Garlock Printing and Converting), a converter of plastic film into flexible packaging solutions.

On January 26, 2021, we exited our debt investment in Ohio Medical, LLC. We received payment in full of $10.0 million on our second lien debt. We subsequently invested $5.0 million in a new second lien debt investment in Ohio Medical, LLC.

On February 10, 2021, we invested $6.5 million in first lien debt and made a commitment up to $2.0 million of additional first lien debt of Wonderware Holdings, LLC (dba CORE Business Technologies), a provider of revenue management and payments solutions for government, healthcare and education.

On February 11, 2021, we invested $8.9 million in first lien debt and made a commitment up to $0.4 million of additional first lien debt of Xeeva, Inc., a global provider of intelligent, cloud-based indirect spend management software solutions.

On February 12, 2021, we exited our debt and equity investments in FDS Avionics Corp. (dba Flight Display Systems).  Flight Display Systems was acquired and combined with Calculex Inc. and Argon Corporation under a new holding company, Spectra A&D Holdings (“Spectra”).  We received payment in full of $5.1 million on our second lien and revolving debt.  We sold our preferred and a portion of our common equity investments for a realized gain of approximately $1.0 million.  In conjunction with the transaction, we invested $8.0 million in first lien debt and $4.1 million in preferred equity, of which $2.0 million was rolled over from our original common equity investment in Flight Display Systems.

On February 16, 2021, we redeemed $50.0 million of the $69.0 million aggregate principal amount on the February 2024 Notes, resulting in a realized loss on extinguishment of debt of approximately $1.1 million.

On February 19, 2021, we exited our debt investment in Wheel Pros, Inc. We received payment in full of $20.4 million on our second lien debt, which includes a prepayment fee.

First Quarter 2021 Dividend of $0.31 Per Share and Supplemental Dividend of $0.07 Per Share Declared

On February 9, 2021, our board of directors declared a regular quarterly dividend of $0.31 per share payable on March 26, 2021 to stockholders of record as of March 12, 2021. In addition, our board of directors declared a supplemental dividend of $0.07 per share payable on March 26, 2021 to stockholders of record as of March 12, 2021.

When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2021 taxable income, as well as the tax attributes for 2021 dividends, will be made after the close of the 2021 tax year. The final tax attributes for 2021 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

Fourth Quarter 2020 Financial Results Conference Call

Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, February 26, 2021. To participate in the conference call, please dial (877) 810-3368 approximately 10 minutes prior to the call. International callers should dial (914) 495-8561. Please reference conference ID # 9295560.

A live webcast of the conference call will be available at http://investor.fdus.com/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software.

A telephone replay of the conference call will be available from 12:00pm ET on February 26, 2021 until 11:59pm ET on March 6, 2021 and may be accessed by calling (855) 859-2056 (domestic dial-in) or (404) 537-3406 (international dial-in) and reference conference ID # 9295560. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.

ABOUT FIDUS INVESTMENT CORPORATION

Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and is licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC).

FORWARD-LOOKING STATEMENTS

This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.

FIDUS INVESTMENT CORPORATION
Consolidated Statements of Assets and Liabilities
(in thousands, except shares and per share data)

			December 31,			December 31,
		2020				2019
ASSETS
Investments, at fair value:
Control investments (cost: $32,969 and $27,718, respectively)		$	28,253			$	21,820
Affiliate investments (cost: $31,836 and $56,328, respectively)			81,394				121,555
Non-control/non-affiliate investments (cost: $622,222 and $620,453, respectively)			633,222				623,544
Total investments, at fair value (cost: $687,027 and $704,499, respectively)			742,869				766,919
Cash and cash equivalents			124,308				15,012
Interest receivable			7,548				6,331
Prepaid expenses and other assets			1,015				1,177
Total assets		$	875,740			$	789,439
LIABILITIES
SBA debentures, net of deferred financing costs		$	144,004			$	153,802
Notes, net of deferred financing costs			300,294				176,901
Borrowings under Credit Facility, net of deferred financing costs			(1,048	)			23,899
Accrued interest and fees payable			3,500				3,505
Base management fee payable – due to affiliate			3,244				3,334
Income incentive fee payable, net of incentive fee waiver – due to affiliate			2,610				1,497
Capital gains incentive fee payable – due to affiliate			11,031				12,715
Administration fee payable and other, net – due to affiliate			576				487
Taxes payable			275				547
Accounts payable and other liabilities			494				442
Total liabilities			464,980				377,129
Commitments and contingencies
NET ASSETS
Common stock, $0.001 par value (100,000,000 shares authorized, 24,437,400 and 24,463,119 shares
issued and outstanding at December 31, 2020 and December 31, 2019, respectively)			24				24
Additional paid-in capital			363,751				366,061
Total distributable earnings			46,985				46,225
Total net assets			410,760				412,310
Total liabilities and net assets		$	875,740			$	789,439
Net asset value per common share		$	16.81			$	16.85

FIDUS INVESTMENT CORPORATION
Consolidated Statements of Operations (unaudited)
(in thousands, except shares and per share data)

					Three Months Ended									Years Ended
					December 31,									December 31,
					2020				2019					2020				2019
Investment Income:
	Interest income
		Control investments			$	541			$	428				$	1,889			$	848
		Affiliate investments				848				1,131					3,511				5,257
		Non-control/non-affiliate investments				17,035				15,384					68,095				56,070
			Total interest income			18,424				16,943					73,495				62,175
	Payment-in-kind interest income
		Control investments				425				511					1,748				2,122
		Affiliate investments				112				134					287				388
		Non-control/non-affiliate investments				612				617					2,625				6,590
			Total payment-in-kind interest income			1,149				1,262					4,660				9,100
	Dividend income
		Control investments				—				—					—				—
		Affiliate investments				372				512					837				1,454
		Non-control/non-affiliate investments				1,470				24					1,630				(30	)
			Total dividend income			1,842				536					2,467				1,424
	Fee income
		Control investments				—				—					—				349
		Affiliate investments				32				(5	)				120				49
		Non-control/non-affiliate investments				2,183				766					4,372				3,926
			Total fee income			2,215				761					4,492				4,324
	Interest on idle funds					-				5					9				83
Total investment income						23,630				19,507					85,123				77,106
Expenses:
	Interest and financing expenses					4,977				4,875					19,678				17,072
	Base management fee					3,244				3,333					12,932				12,399
	Incentive fee - income					2,610				1,498					8,952				7,445
	Incentive fee (reversal) - capital gains					4,696				2,926					(1,684	)			3,299
	Administrative service expenses					478				384					1,720				1,583
	Professional fees					582				340					2,090				1,553
	Other general and administrative expenses					289				261					1,348				1,286
Total expenses before income incentive fee waiver						16,876				13,617					45,036				44,637
	Incentive fee waiver - income					-				-					(423	)			-
Total expenses, net of income incentive fee waiver						16,876				13,617					44,613				44,637
Net investment income before income taxes						6,754				5,890					40,510				32,469
	Income tax provision (benefit)					716				525					862				500
Net investment income						6,038				5,365					39,648				31,969
Net realized and unrealized gains (losses) on investments:
	Net realized gains (losses):
		Control investments				—				—					—				(1,268	)
		Affiliate investments				301				9					24,655				(64	)
		Non-control/non-affiliate investments				(34,166	)			(10,011	)				(25,623	)			161
	Total net realized gain (loss) on investments					(33,865	)			(10,002	)				(968	)			(1,171	)
	Income tax (provision) benefit from realized gains on investments					488				140					(577	)			(121	)
	Net change in unrealized appreciation (depreciation):
		Control investments				2,339				6,249					1,182				(2,021	)
		Affiliate investments				12,626				9,515					(15,669	)			13,100
		Non-control/non-affiliate investments				41,891				8,730					7,909				7,109
	Total net change in unrealized appreciation (depreciation) on investments					56,856				24,494					(6,578	)			18,188
Net gain (loss) on investments						23,479				14,632					(8,123	)			16,896
Realized losses on extinguishment of debt						—				—					(299	)			(399	)
Net increase in net assets resulting from operations					$	29,517			$	19,997				$	31,226			$	48,466
Per common share data:
Net investment income per share-basic and diluted					$	0.25			$	0.22				$	1.62			$	1.31
Net increase in net assets resulting from operations per share — basic and diluted					$	1.20			$	0.82				$	1.28			$	1.98
Dividends declared per share					$	0.34			$	0.43				$	1.33			$	1.60
Weighted average number of shares outstanding — basic and diluted						24,437,400				24,463,119					24,442,431				24,463,119

Schedule 1

Supplemental Information Regarding Adjusted Net Investment Income

On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three months and years ended December, 2020 and 2019.

					($ in thousands)							($ in thousands)
					Three Months Ended							Years Ended
					December 31,							December 31,
					(unaudited)							(unaudited)
					2020			2019				2020				2019
Net investment income					$	6,038		$	5,365			$	39,648			$	31,969
Capital gains incentive fee expense (reversal)						4,696			2,926				(1,684	)			3,299
Adjusted net investment income (1)					$	10,734		$	8,291			$	37,964			$	35,268
					(Per share)							(Per share)
					Three Months Ended							Years Ended
					December 31,							December 31,
					(unaudited)							(unaudited)
					2020			2019				2020				2019
Net investment income					$	0.25		$	0.22			$	1.62			$	1.31
Capital gains incentive fee expense (reversal)						0.19			0.12				(0.07	)			0.13
Adjusted net investment income (1)					$	0.44		$	0.34			$	1.55			$	1.44

(1)   Adjusted net investment income per share amounts are calculated as adjusted net investment income dividend by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.

Company Contact:                                                 
Shelby E. Sherard                                                
Chief Financial Officer                                                
(847) 859-3940        
ssherard@fidusinv.com        

Investor Relations Contact:
Jody Burfening
LHA     
(212) 838-3777           
jburfening@lhai.com