Edgar Filing: BARINGS PARTICIPATION INVESTORS

Unassociated Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-Q

Quarterly Schedule of Portfolio Holdings of

Registered Management Investment Company

Investment Company Act file number 811-05531

Barings Participation Investors

(Exact name of registrant as specified in charter)

1500 Main Street, Springfield, MA 01115

(Address of principal executive offices) (Zip code)

Janice M. Bishop, Vice President, Secretary and Chief Legal Officer

Independence Wharf, 470 Atlantic Avenue, Boston, MA 02210

(Name and address of agent for service)

Registrant's telephone number, including area code: 413-226-1000

___________________

Date of fiscal year end: 12/31

___________________

Date of reporting period: 09/30/17

___________________

ITEM 1. SCHEDULE OF INVESTMENTS

CONSOLIDATED SCHEDULE OF INVESTMENTS

September 30, 2017

(Unaudited)


Corporate Restricted Securities - 79.17%: (A)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Private Placement Investments - 66.73%: (C)
1492 Acquisition LLC
A leading producer of premium Italian cured meats and deli meats in the U.S.
Limited Liability Company Unit Class A Preferred (B)	102 uts.		10/17/12		$	102,270	$	148,310
Limited Liability Company Unit Class A Common (B)	11,364 uts.		10/17/12			11,364		240,224
						113,634		388,534

ABC Industries, Inc.
A manufacturer of mine and tunneling ventilation products in the U.S.
13% Senior Subordinated Note due 07/31/2019	$	109,335	08/01/12			105,086		108,740
Preferred Stock Series A (B)	125,000 shs.		08/01/12			125,000		251,460
Warrant, exercisable until 2022, to purchase common stock at $.02 per share (B)	22,414 shs.		08/01/12			42,446		42,589
						272,532		402,789

Advanced Manufacturing Enterprises LLC
A designer and manufacturer of large, custom gearing products for a number of critical customer applications.
Limited Liability Company Unit (B)	1,945 uts.			*		207,910		—
* 12/07/12, 07/11/13 and 06/30/15.

AFC - Dell Holding Corporation
A distributor and provider of inventory management services for "C-Parts" used by OEMs in their manufacturing and production facilities.
12.5% (1% PIK) Senior Subordinated Note due 09/27/2020	$	1,212,377	03/27/15			1,197,524		1,224,501
Preferred Stock (B)	1,122 shs.		03/27/15			112,154		130,707
Common Stock (B)	346 shs.		03/27/15			346		—
						1,310,024		1,355,208

Airxcel Holdings
A leading manufacturer of a broad range of climate control solutions, including air-conditioners, heat pumps, cooking appliances, furnaces, powered vents, and water heaters.
Limited Liability Company Unit	288 uts.		11/18/14			288,000		617,324


AM Conservation Holding Corp.
A supplier of energy efficiency ("EE") products, including lighting, shower heads and aerators, and weatherization products such as door seals and weather stripping.
11.75% (1.5% PIK) Senior Subordinated Note due 04/30/2023	$	1,568,182	10/31/16			1,539,920		1,576,467
Common Stock (B)	156,818 shs.		10/31/16			156,818		237,645
						1,696,738		1,814,112

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

AMS Holding LLC
A leading multi-channel direct marketer of high-value collectible coins and proprietary-branded jewelry and watches.
Limited Liability Company Unit Class A Preferred (B)(F)	114 uts.		10/04/12		$	113,636	$	284,979


API Technologies Corp.
A designer, developer and manufacturer of electronic systems, subsystems, modules and secure communications for technically demanding defense, aerospace and commercial applications in the U.S. and internationally.
12% (1% PIK) Senior Subordinated Note due 04/22/2023	$	1,399,969	04/22/16			1,388,664		1,423,830
Limited Liability Company Unit (B)	0.40% int.		04/20/16			345,000		417,450
						1,733,664		1,841,280

ARI Holding Corporation
A leading national supplier of products used primarily by specialty contractors.
11.5% (0.5% PIK) Senior Subordinated Note due 02/01/2020	$	1,719,544		*		1,706,033		1,719,544
Limited Partnership Interest	524 uts.		08/01/14			523,950		581,460
* 05/21/13 and 08/01/14.						2,229,983		2,301,004


ASC Holdings, Inc.
A manufacturer of capital equipment used by corrugated box manufacturers.
13% (1% PIK) Senior Subordinated Note due 05/18/2021	$	754,313	11/19/15			743,388		726,916
Limited Liability Company Unit (B)	111,100 uts.		11/18/15			111,100		42,885
						854,488		769,801

Aurora Parts & Accessories LLC
A distributor of aftermarket over-the-road semi-trailer parts and accessories sold to customers across North America.
11% Senior Subordinated Note due 02/17/2022	$	1,515,400	08/17/15			1,493,316		1,487,572
Preferred Stock (B)	210 shs.		08/17/15			209,390		152,452
Common Stock (B)	210 shs.		08/17/15			210		—
						1,702,916		1,640,024

Avantech Testing Services LLC
A manufacturer of custom Non-Destructive Testing ("NDT") systems and provider of NDT and inspections services primarily to the oil country tubular goods market.
15% (3.75% PIK) Senior Subordinated Note due 01/31/2021 (D)	$	500,587	07/31/14			491,228		—
Limited Liability Company Unit (B)(F)	45,504 uts.			*		—		—
* 07/31/14 and 10/14/15.						491,228		—

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

BEI Precision Systems & Space Company, Inc.
A provider of advanced design, manufacturing, and testing for custom optical encoder-based positioning systems, precision accelerometers, and micro scanners.
12% (1% PIK) Senior Subordinated Note due 04/28/2024	$	1,455,118	04/28/17	$	1,427,284	$	1,472,294
Limited Liability Company Unit (B)(F)	2,760 uts.		04/28/17		276,000		188,967
					1,703,284		1,661,261

Blue Wave Products, Inc.
A distributor of pool supplies.
10% Senior Secured Term Note due 09/30/2018	$	79,433	10/12/12		79,100		79,433
13% (1% PIK) Senior Subordinated Note due 09/30/2019	$	333,907	10/12/12		324,664		333,907
Common Stock (B)	51,064 shs.		10/12/12		51,064		376,380
Warrant, exercisable until 2022, to purchase common stock at $.01 per share (B)	20,216 shs.		10/12/12		20,216		149,007
					475,044		938,727

BlueSpire Holding, Inc.
A marketing services firm that integrates strategy, technology, and content to deliver customized marketing solutions for clients in the senior living, financial services and healthcare end markets.
12.5% (1.5% PIK) Senior Subordinated Note due 06/30/2021 (D)	$	1,585,908	06/30/15		1,561,276		—
Common Stock (B)	1,417 shs.		06/30/15		156,800		—
					1,718,076		—

BP SCI LLC
A leading value-added distributor of branded pipes, valves, and fittings (PVF) to diversified end markets.
Limited Liability Company Unit Class A (B)(F)	417 uts.		10/17/12		41,667		263,730
Limited Liability Company Unit Class B (B)(F)	167 uts.		10/17/12		166,666		292,916
					208,333		556,646

CG Holdings Manufacturing Company
A coating provider serving the automotive, agricultural, heavy truck and other end markets.
13% Senior Subordinated Note due 11/01/2019	$	1,412,605	*		1,370,751		1,412,606
Preferred Stock (B)	1,350 shs.		*		134,972		182,772
Preferred Stock (B)	489 shs.		*		48,721		66,245
Common Stock (B)	140 shs.		*		14,864		410,593
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	58 shs.		*		5,430		170,546
* 05/09/13 and 11/01/13.					1,574,738		2,242,762

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

CHG Alternative Education Holding Company
A leading provider of publicly-funded, for profit pre-K-12 education services targeting special needs children at therapeutic day schools and "at risk" youth through alternative education programs.
13.5% (1.5% PIK) Senior Subordinated Note due 06/19/2020	$	788,793	01/19/11		$	782,350	$	788,793
14% (2% PIK) Senior Subordinated Note due 06/19/2020	$	208,134	08/03/12			206,653		208,134
Common Stock (B)	375 shs.		01/19/11			37,500		38,118
Warrant, exercisable until 2021, to purchase common stock at $.01 per share (B)	295 shs.		01/19/11			29,250		29,963
						1,055,753		1,065,008

Church Services Holding Company
A provider of diversified residential services to homeowners in the Houston, Dallas, and Austin markets.
Limited Liability Company Unit (B)(F)	1 ut.		03/26/12			189,978		—


Clarion Brands Holding Corp.
A portfolio of six over-the-counter (OTC) pharmaceutical brands whose products are used to treat tinnitus or ringing of the ear, excessive sweating, urinary tract infections, muscle pain, and skin conditions.
12.5% (1.5% PIK) Senior Subordinated Note due 04/01/2021	$	2,046,289		*		2,018,735		2,042,283
Limited Liability Company Unit (B)	1,853 uts.		07/18/16			189,267		138,404
* 10/01/14 and 07/18/16.						2,208,002		2,180,687


Clough, Harbour and Associates
An engineering service firm that is located in Albany, NY.
Preferred Stock (B)	147 shs.		12/02/08			146,594		858,132


Compass Chemical International LLC
A manufacturer and supplier of standard and specialty formulated chemicals, primarily phosphoric acid derivatives called phosphonates.
Limited Liability Company Unit (B)(F)	230 uts.		03/04/15			147,304		192,425


Connecticut Electric, Inc.
A supplier and distributor of electrical products sold into the retail and wholesale markets.
Limited Liability Company Unit Class A (B)	82,613 uts.		01/12/07			82,613		128,941
Limited Liability Company Unit Class C (B)	59,756 uts.		01/12/07			59,756		103,728
Limited Liability Company Unit Class D (B)	671,525 uts.		05/03/10			—		1,120,057
Limited Liability Company Unit Class E (B)	1,102 uts.		05/03/10			—		260,556
						142,369		1,613,282

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

CORA Health Services, Inc.
A provider of outpatient rehabilitation therapy services.
12.75% (1.75% PIK) Senior Subordinated Note due 06/30/2023	$	775,013	06/30/16		$	761,884	$	793,088
Preferred Stock Series A (B)	758 shs.		06/30/16			72,033		84,218
Common Stock Class A (B)	3,791 shs.		06/30/16			3,791		23,287
						837,708		900,593

CTM Holding, Inc.
A leading owner and operator of coin-operated children's rides, penny presses and candy kiosks in the U.S.
15% (3% PIK) Senior Subordinated Note due 11/22/2019	$	1,326,281	11/22/13			1,315,315		1,326,281
Common Stock (B)	90 shs.			*		514,284		558,242
* 11/22/13 and 09/16/16.						1,829,599		1,884,523


Del Real LLC
A manufacturer and distributor of fully-prepared fresh refrigerated Hispanic entrees as well as side dishes that are typically sold on a heat-and-serve basis at retail grocers.
11% Senior Subordinated Note due 04/06/2023	$	1,420,588	10/07/16			1,395,269		1,420,588
Limited Liability Company Unit (B)(F)	304,412 uts.		10/07/16			304,412		337,897
						1,699,681		1,758,485

DPL Holding Corporation
A distributor and manufacturer of aftermarket undercarriage parts for medium and heavy duty trucks and trailers.
14% (2% PIK) Senior Subordinated Note due 11/04/2020	$	1,425,125	05/04/12			1,415,222		1,399,628
Preferred Stock (B)	25 shs.		05/04/12			252,434		200,106
Common Stock (B)	25 shs.		05/04/12			28,048		—
						1,695,704		1,599,734

Dunn Paper
A provider of specialty paper for niche product applications.
9.75% Second Lien Term Loan due 08/31/2023	$	1,725,000	09/28/16			1,695,344		1,690,500


Eagle Family Foods, Inc.
A producer of low-cost branded and private label canned milk.
10.05% Last Out Term Loan due 12/31/2021	$	1,725,000	12/22/15			1,706,680		1,709,376
0.29% Second Last Out Term Loan due 8/29/2023	$	177,404	09/07/17			175,646		175,797
						1,882,326		1,885,173

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

ECG Consulting Group
A healthcare management consulting company who provides strategic, financial, operational, and technology related consulting services to healthcare providers.
11.75% (0.75% PIK) Senior Subordinated Note due 11/21/2020	$	1,321,758	11/21/14	$	1,303,731	$	1,334,976
Limited Liability Company Unit (B)(F)	230 uts.		11/19/14		71,875		139,556
					1,375,606		1,474,532

Elite Sportwear Holding, LLC
A designer and manufacturer of gymnastics, competitive cheerleading and swimwear apparel in the U.S. and internationally.
11.5% (1% PIK) Senior Subordinated Note due 10/13/2021	$	1,580,639	10/14/16		1,557,371		1,583,673
Limited Liability Company Unit (B)(F)	101 uts.		10/14/16		159,722		147,915
					1,717,093		1,731,588

English Color & Supply LLC
A distributor of aftermarket automotive paint and related products to collision repair shops, auto dealerships and fleet customers through a network of stores in the Southern U.S.
11.5% (0.5% PIK) Senior Subordinated Note due 12/31/2023	$	1,328,964	06/30/17		1,303,438		1,331,902
Limited Liability Company Unit (B)(F)	397,695 uts.		06/30/17		397,695		437,465
					1,701,133		1,769,367

ERG Holding Company LLC
A provider of inpatient and outpatient clinical trial services to pharmaceutical companies and contract research organizations.
13.5% (1.5% PIK) Senior Subordinated Note due 10/04/2019	$	980,292	04/04/14		971,823		980,292
14% (2% PIK) Senior Subordinated Note due 10/04/2019	$	258,346	07/01/16		254,967		259,508
Common Stock (B)	0.31% int.		04/04/14		77,533		77,525
					1,304,323		1,317,325

F F C Holding Corporation
A leading U.S. manufacturer of private label frozen novelty and ice cream products.
Limited Liability Company Unit Preferred (B)	171 uts.		09/27/10		58,345		85,700
Limited Liability Company Unit Common (B)	171 uts.		09/27/10		17,073		439,547
					75,418		525,247

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

F G I Equity LLC
A manufacturer of a broad range of filters and related products that are used in commercial, light industrial, healthcare, gas turbine, nuclear, laboratory, clean room, hotel, educational system, and food processing settings.
Limited Liability Company Unit Preferred (B)	80,559 uts.		04/15/14	$	—	$	80,559
Limited Liability Company Unit Class B-1 (B)	65,789 uts.		12/15/10		65,789		334,823
Limited Liability Company Unit Class B-2 (B)	8,248 uts.		12/15/10		8,248		41,977
Limited Liability Company Unit Class B-3 (B)	6,522 uts.		08/30/12		15,000		34,887
Limited Liability Company Unit Class C (B)	1,575 uts.		12/20/10		16,009		55,980
					105,046		548,226

FMH Holdings Corporation
A designer and manufacturer of highly engineered components for the aerospace, defense and space industries.
Common Stock (B)	148 shs.		05/01/15		148,096		333,750


GD Dental Services LLC
A provider of convenient "onestop" general, specialty, and cosmetic dental services with 21 offices located throughout South and Central Florida.
Limited Liability Company Unit Preferred (B)	76 uts.		10/05/12		75,920		94,899
Limited Liability Company Unit Common (B)	767 uts.		10/05/12		767		—
					76,687		94,899

gloProfessional Holdings, Inc.
A marketer and distributor of premium mineral-based cosmetics, cosmeceuticals and professional hair care products to the professional spa and physician's office channels.
14% (2% PIK) Senior Subordinated Note due 03/27/2019	$	1,238,413	03/27/13		1,230,892		1,123,488
Common Stock (B)	1,181 shs.		03/27/13		118,110		61,665
					1,349,002		1,185,153

Glynlyon Holding Companies, Inc.
A technology-enabled curriculum provider of K-12 and support services predominantly to small and medium public school districts.
12% (1% PIK) Senior Subordinated Note due 01/15/2022	$	1,604,757	01/15/16		1,579,980		1,636,852
Common Stock (B)	147 shs.		01/15/16		147,436		260,266
					1,727,416		1,897,118

GlynnDevins Acquisition Corporation
A marketing communications agency that services senior living facilities.
Preferred Stock Series A (B)	342 shs.		06/19/15		70,683		82,644
Common Stock (B)	342 shs.		06/19/15		2,945		44,949
					73,628		127,593

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Grakon Parent
The leading designer and manufacturer of highly-engineered and customized LED and incandescent lighting systems for transportation-based markets.
Common Stock (B)	175 shs.		10/31/14		$	174,831	$	203,550

GTI Holding Company
A designer, developer, and marketer of precision specialty hand tools and handheld test instruments.
12% Senior Subordinated Note due 02/05/2020	$	727,865	02/05/14			702,700		720,988
Common Stock (B)	846 shs.		02/05/14			84,636		53,256
Warrant, exercisable until 2024, to purchase common stock at $.01 per share (B)	397 shs.		02/05/14			36,816		24,991
						824,152		799,235

Handi Quilter Holding Company (Premier Needle Arts)
A designer and manufacturer of long-arm quilting machines and related components for the consumer quilting market.
12% (1% PIK) Senior Subordinated Note due 06/19/2021	$	1,725,000		*		1,700,717		1,740,947
Limited Liability Company Unit Preferred (B)	372 uts.			**		371,644		435,728
Limited Liability Company Unit Common Class A (B)	3,594 uts.		12/19/14			—		42,250
* 12/19/14 and 02/21/17.						2,072,361		2,218,925
* *12/19/14 and 04/29/16.

Happy Floors Acquisition, Inc.
A wholesale importer and value-added distributor of premium European flooring tile to residential and commercial end markets.
12.5% (1% PIK) Senior Subordinated Note due 07/01/2022	$	1,595,292	07/01/16			1,568,977		1,626,654
Common Stock (B)	150 shs.		07/01/16			149,500		166,535
						1,718,477		1,793,189

Hartland Controls Holding Corporation
A manufacturer and distributor of electronic and electromechanical components.
14% (2% PIK) Senior Subordinated Note due 08/14/2020	$	1,123,058	02/14/14			1,112,767		1,123,058
12% Senior Subordinated Note due 08/14/2020	$	431,250	06/22/15			428,850		435,563
Common Stock (B)	821 shs.		02/14/14			822		355,363
						1,542,439		1,913,984

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

HHI Group, LLC
A developer, marketer, and distributor of hobby-grade radio control products.
14% (2% PIK) Senior Subordinated Note due 11/26/2020	$	1,674,736	01/17/14		$	1,659,884	$	1,674,326
Limited Liability Company Unit (B)(F)	102 uts.		01/17/14			101,563		22,663
						1,761,447		1,696,989

Hollandia Produce LLC
A hydroponic greenhouse producer of branded root vegetables.
14.25% (2.75% PIK) Senior Subordinated Note due 12/11/2020	$	1,388,935		*		1,369,788		1,250,041
* 12/30/15 and 12/23/16.


HOP Entertainment LLC
A provider of post production equipment and services to producers of television shows and motion pictures.
Limited Liability Company Unit Class F (B)(F)	47 uts.		10/14/11			—		—
Limited Liability Company Unit Class G (B)(F)	114 uts.		10/14/11			—		—
Limited Liability Company Unit Class H (B)(F)	47 uts.		10/14/11			—		—
Limited Liability Company Unit Class I (B)(F)	47 uts.		10/14/11			—		—
						—		—

Hospitality Mints Holding Company
A manufacturer of individually-wrapped imprinted promotional mints.
12% Senior Subordinated Note due 10/01/2018	$	1,098,837	08/19/08			1,096,447		988,953
Common Stock (B)	251 shs.		08/19/08			251,163		—
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	65 shs.		08/19/08			60,233		—
						1,407,843		988,953

Impact Confections
An independent manufacturer and marketer of confectionery products including Warheads^® brand sour candies, Melster^® brand classic candies, and co-manufactured/private label classic candies.
13% (1% PIK) Senior Subordinated Note due 11/10/2020	$	1,094,920	11/10/14			1,081,831		886,450
Common Stock (B)	2,300 shs.		11/10/14			230,000		—
						1,311,831		886,450

Insurance Claims Management, Inc.
A third party administrator providing auto and property claim administration services for insurance companies.
Common Stock (B)	47 shs.		02/27/07			1,424		132,434

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

Janus Group Holdings LLC
A manufacturer of roll-up doors and hallway systems that are primarily used in self-storage facilities.
Limited Liability Company Unit Class A (B)(F)	283 uts.		12/11/13	$	—	$	1,652,071


JMH Investors LLC
A developer and manufacturer of custom formulations for a wide variety of foods.
Limited Liability Company Unit (B)(F)	1,038,805 uts.		12/05/12		232,207		—
Limited Liability Company Unit Class A-1 (B)(F)	163,043 uts.		10/31/16		163,043		226,139
Limited Liability Company Unit Class A-2 (B)(F)	1,032,609 uts.		10/31/16		—		78,006
					395,250		304,145

K P I Holdings, Inc.
The largest player in the U.S. non-automotive, non-ferrous die casting segment.
Limited Liability Company Unit Class C Preferred (B)	40 uts.		06/30/15		—		82,604
Common Stock (B)	353 shs.		07/15/08		285,619		381,643
					285,619		464,247

Kyjen Company
A designer and distributor of branded and private label dog toys and accessories primarily in the US.
13% (1% PIK) Senior Subordinated Note due 10/14/2021	$	1,319,341	10/14/15		1,299,807		1,345,727


Manhattan Beachwear Holding Company
A designer and distributor of women's swimwear.
12.5% Senior Subordinated Note due 04/30/2018 (D)	$	419,971	01/15/10		404,121		377,974
15% (2.5% PIK) Senior Subordinated Note due 04/30/2020 (D)	$	115,253	10/05/10		114,604		103,727
Common Stock (B)	35 shs.		10/05/10		35,400		27,317
Common Stock Class B (B)	118 shs.		01/15/10		117,647		90,788
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)	104 shs.		10/05/10		94,579		80,347
					766,351		680,153

Master Cutlery LLC
A designer and marketer of a wide assortment of knives and swords.
13% Senior Subordinated Note due 04/17/2020	$	865,882	04/17/15		860,027		649,411
13% Senior Subordinated Note due 10/29/2018	$	100,511	09/29/17		100,511		100,511
Limited Liability Company Unit	5 uts.		04/17/15		678,329		—
					1,638,867		749,922

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

MC Sign Holdings LLC
A provider of sign and lighting services nationwide.
11.75% (0.75% PIK) Senior Subordinated Note due 08/09/2022	$	989,300		*	$	973,837	$	991,938
Limited Liability Company Unit Class B (B)	101,500 uts.		09/22/15			101,500		158,157
* 09/22/15 and 02/09/17.						1,075,337		1,150,095


Merex Holding Corporation
A provider of after-market spare parts and components, as well as maintenance, repair and overhaul services for "out of production" or "legacy" aerospace and defense systems that are no longer effectively supported by the original equipment manufacturers.
16% Senior Subordinated Note due 10/30/2019 (D)	$	454,295	09/22/11			449,013		449,752
15% PIK Senior Subordinated Note due 04/30/2022 (D)	$	23,839	08/18/15			23,839		22,647
14% PIK Senior Subordinated Note due 06/30/2019	$	37,859	10/21/16			37,859		37,853
Common Stock Class A (B)	83,080 shs.			*		170,705		254,013
* 08/18/15, 10/20/16 and 01/27/17.						681,416		764,265


MES Partners, Inc.
An industrial service business offering an array of cleaning and environmental services to the Gulf Coast region of the U.S.
12% (1% PIK) Senior Subordinated Note due 09/30/2021	$	1,114,956	09/30/14			1,100,412		1,103,129
Common Stock Class B (B)	219,545 shs.		09/30/14			219,545		86,737
						1,319,957		1,189,866

Midwest Industrial Rubber, Inc.
A supplier of industrial maintenance, repair, and operations ("MRO") products, specializing in the fabrication and distribution of lightweight conveyor belting and related conveyor components and accessories.
12% (1% PIK) Senior Subordinated Note due 12/02/2022	$	1,566,584	12/02/16			1,538,558		1,594,962
Preferred Stock	1,711 shs.		12/02/16			171,116		150,154
Common Stock	242 shs.		12/02/16			242		—
						1,709,916		1,745,116

MNX Holding Company
An international third party logistics company providing customized logistics services to customers across the globe.
14% (2% PIK) Senior Subordinated Note due 11/02/2019	$	1,329,511	11/02/12			1,319,721		1,329,511
Common Stock (B)	45 shs.		11/02/12			44,643		48,102
						1,364,364		1,377,613

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Money Mailer Equity LLC
A leading provider of hyperlocal shared direct mail advertising as well as interactive and online advertising solutions through its nationwide production and distribution network.
12% (1% PIK) Senior Subordinated Note due 10/29/2021	$	1,748,238	04/29/16		$	1,720,751	$	1,684,997


Motion Controls Holdings
A manufacturer of high performance mechanical motion control and linkage products.
14.25% (1.75% PIK) Senior Subordinated Note due 08/15/2020	$	282,920	11/30/10			281,084		282,920
Limited Liability Company Unit Class B-1 (B)(F)	75,000 uts.		11/30/10			—		40,971
Limited Liability Company Unit Class B-2 (B)(F)	6,801 uts.		11/30/10			—		3,715
						281,084		327,606

NetShape Technologies, Inc.
A manufacturer of powder metal and metal injection molded precision components used in industrial, consumer, and other applications.
12% Senior Subordinated Note due 06/10/2020 (D)	$	810,000	02/02/07			809,408		—
Limited Partnership Interest of Saw Mill PCG Partners LLC (B)	1.46% int.		02/01/07			588,077		—
Limited Liability Company Unit Class D of Saw Mill PCG Partners LLC (B)	9 uts.			*		8,873		—
Limited Liability Company Unit Class D-1 of Saw Mill PCG Partners LLC (B)	121 uts.		09/30/09			121,160		—
Limited Liability Company Unit Class D-2 of Saw Mill PCG Partners LLC (B)	68 uts.		04/29/11			34,547		—
Limited Liability Company Unit Class D-3 of Saw Mill PCG Partners LLC (B)	104 uts.		12/10/14			103,904		—
* 12/18/08 and 09/30/09.						1,665,969		—


NSi Industries Holdings, Inc.
A manufacturer and distributer of electrical components and accessories to small to mid-sized electrical wholesalers.
12.75% (1.75% PIK) Senior Subordinated Note due 05/17/2023	$	1,527,814	06/30/16			1,502,058		1,555,450
Common Stock (B)	207 shs.		05/17/16			207,000		250,752
						1,709,058		1,806,202

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

PANOS Brands LLC
A marketer and distributor of branded consumer foods in the specialty, natural, better-for-you,"free from" healthy and gluten-free categories.
12% (1% PIK) Senior Subordinated Note due 07/29/2021	$	1,449,000	01/29/16		$	1,426,870	$	1,477,980
12% (1% PIK) Senior Subordinated Note due 08/17/2022	$	326,705	02/17/17			320,704		330,673
Common Stock Class B (B)	380,545 shs.			*		380,545		488,675
* 01/29/16 and 02/17/17.						2,128,119		2,297,328

Petroplex Inv Holdings LLC
A leading provider of acidizing services to E&P customers in the Permian Basin.
Limited Liability Company	0.40% int.			*		175,339		9,206
* 11/29/12 and 12/20/16.


Polytex Holdings LLC
A manufacturer of water based inks and related products serving primarily the wall covering market.
13% (1% PIK) Senior Subordinated Note due 01/31/2020	$	1,069,985	07/31/14			1,059,341		1,016,108
Limited Liability Company Unit	148,096 uts.		07/31/14			148,096		—
Limited Liability Company Unit Class F	20,621 uts.		09/28/17			14,274		14,274
						1,221,711		1,030,382

Power Stop Holdings LLC
A supplier of performance upgrade aftermarket brake products.
11% Senior Subordinated Note due 05/29/2022	$	1,610,100	05/29/15			1,587,023		1,626,201
Limited Liability Company Unit Preferred (B)(F)	1,149 uts.		05/29/15			114,900		141,285
Limited Liability Company Unit Common (B)(F)	1,149 uts.		05/29/15			—		108,716
						1,701,923		1,876,202

PPC Event Services
A special event equipment rental business.
14% (2% PIK) Senior Subordinated Note due 05/20/2020	$	1,184,484	11/20/14			1,171,698		1,184,484
Limited Liability Company Unit (B)	3,450 uts.		11/20/14			172,500		458,907
Limited Liability Company Unit Series A-1 (B)	339 uts.		03/16/16			42,419		52,160
						1,386,617		1,695,551

Randy's Worldwide Automotive
A designer and distributor of automotive aftermarket parts.
11.5% Senior Subordinated Note due 05/12/2021	$	1,135,898	05/12/15			1,121,325		1,147,257
Common Stock (B)	118 shs.		05/12/15			118,476		303,372
						1,239,801		1,450,629

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Signature Systems Holding Company
A seller and installer of a variety of modular surfaces, industrial matting and related products used for ground protection.
Common Stock (B)	76 shs.		03/15/13		$	75,509	$	67,639
Warrant, exercisable until 2023, to purchase common stock A at $.01 per share (B)	31 shs.		03/15/13			28,316		27,634
						103,825		95,273

Smart Source Holdings LLC
A short-term computer rental company.
Limited Liability Company Unit (B)	328 uts.			*		261,262		451,090
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)	83 shs.			*		67,467		114,261
* 08/31/07 and 03/06/08.						328,729		565,351


SMB Machinery Holdings, Inc.
A reseller of used, rebuilt and refurbished packaging and processing equipment, primarily serving the bottling and food manufacturing industries.
14% (2% PIK) Senior Subordinated Note due 10/18/2019 (D)	$	738,694	10/18/13			726,147		—
Common Stock (B)	841 shs.		10/18/13			84,100		—
						810,247		—

Software Paradigms International Group, LLC
An outsourced IT services provider focused on the retail industry.
12.5% (1.5% PIK) Senior Subordinated Note due 11/23/2021	$	1,725,000	05/23/16			1,696,914		1,742,250


SR Smith LLC
A manufacturer of mine and tunneling ventilation products in the United States.
11% Senior Subordinated Note due 03/27/2022	$	867,652	03/27/17			857,662		867,652
Limited Liability Company Unit Series A (B)(F)	14 uts.		03/27/17			846,631		942,711
						1,704,293		1,810,363

Strahman Holdings Inc
A manufacturer of industrial valves and wash down equipment for a variety of industries, including chemical, petrochemical, polymer, pharmaceutical, food processing, beverage and mining.
Preferred Stock Series A (B)	158,967 shs.		12/13/13			158,967		253,630
Preferred Stock Series A-2 (B)	26,543 shs.		09/10/15			29,994		42,349
						188,961		295,979

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Sunrise Windows Holding Company
A manufacturer and marketer of premium vinyl windows exclusively selling to the residential remodeling and replacement market.
16% Senior Subordinated Note due 01/31/2019 (D)	$	1,428,470		*	$	1,358,229	$	999,929
Common Stock (B)	38 shs.		12/14/10			38,168		—
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)	37 shs.		12/14/10			37,249		—
* 12/14/10, 08/17/12 and 03/31/16.						1,433,646		999,929


Sunvair Aerospace Group Inc.
An aerospace maintenance, repair, and overhaul provider servicing landing gears on narrow body aircraft.
12% (1% PIK) Senior Subordinated Note due 07/31/2021	$	1,224,740	07/31/15			1,207,975		1,169,792
Common Stock (B)	68 shs.		07/31/15			78,150		55,819
						1,286,125		1,225,611

Team Drive-Away Holdings LLC
An asset-light provider of over the road driveaway services for class 8 trucks and specialized equipment.
Limited Liability Company Unit (B)	95,800 uts.		10/15/15			95,800		138,048


Torrent Group Holdings, Inc.
A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and nuisance water flow.
15% (7.5% PIK) Senior Subordinated Note due 12/05/2020	$	72,303	12/05/13			223,110		72,302
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	28,079 shs.		12/05/13			—		17,970
						223,110		90,272

Tranzonic Holdings LLC
A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom supplies and sanitary care products.
Limited Liability Company Unit Preferred Class A (B)	152,696 shs.			*		166,248		814,950
* 07/05/13 and 02/13/17.

Tristar Global Energy Solutions, Inc.
A hydrocarbon and decontamination services provider serving refineries worldwide.
12.5% (1.5% PIK) Senior Subordinated Note due 07/31/2020	$	1,156,302	01/23/15			1,142,950		1,049,735

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Veritext Corporation
A provider of stenographic staffing and other services used during the legal deposition process.
10.75% Second Lien Term Loan due 01/29/2023	$	2,012,500		*	$	1,981,078	$	1,982,375
* 01/21/16 and 02/23/17.

VP Holding Company
A provider of school transportation services for special-needs and homeless children in Massachusetts.
Common Stock (B)	3,632 shs.		03/31/14			363,158		662,668


Wellborn Forest Holding Company
A manufacturer of semi-custom kitchen and bath cabinetry.
8% Senior Subordinated Note due 09/30/2019 (D)	$	1,778,423	11/30/06			895,271		1,778,423
Common Stock (B)	101 shs.		11/30/06			101,250		—
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)	51 shs.		11/30/06			45,790		—
						1,042,311		1,778,423

Westminster Acquisition LLC
A manufacturer of premium, all-natural oyster cracker products sold under the Westminster and Olde Cape Cod brands.
12% (1% PIK) Senior Subordinated Note due 02/03/2021	$	378,309	08/03/15			373,457		382,092
Limited Liability Company Unit (B)(F)	370,241 uts.		08/03/15			370,241		633,786
						743,698		1,015,878

Whitebridge Pet Brands Holdings, LLC
A portfolio of natural treats and foods for dogs and cats.
11.5% (0.5% PIK) Senior Subordinated Note due 08/18/2021	$	1,484,359	04/18/17			1,464,269		1,490,807
Limited Liability Company Unit Class A (B)(F)	123 uts.		04/18/17			148,096		131,193
Limited Liability Company Unit Class B (B)(F)	123 uts.		04/18/17			—		37,071
						1,612,365		1,659,071

Wolf-Gordon, Inc.
A designer and specialty distributor of wallcoverings and related building products, including textiles, paint, and writeable surfaces.
12.5% (1.5% PIK) Senior Subordinated Note due 07/22/2021	$	1,608,409	01/22/16			1,584,472		1,640,578
Common Stock (B)	157 shs.		01/22/16			156,818		168,720
						1,741,290		1,809,298

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

WP Supply Holding Corporation
A distributor of fresh fruits and vegetables to grocery wholesalers and foodservice distributors in the upper Midwest.
14.5% (2.5% PIK) Senior Subordinated Note due 06/12/2020	$	984,918	11/03/11	$	980,999	$	984,918
Common Stock (B)	1,500 shs.		11/03/11		150,000		106,190
					1,130,999		1,091,108

York Wall Holding Company
A designer, manufacturer and marketer of wall covering products for both residential and commercial wall coverings.
12.5% (1.5% PIK) Senior Subordinated Note due 03/04/2021 (D)	$	1,572,322	03/04/15		1,549,582		1,400,615
Common Stock (B)	1,835 shs.		03/04/15		183,500		22,227
					1,733,082		1,422,842


Total Private Placement Investments (E)				$	95,358,716	$	99,182,288

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Interest Rate		Maturity Date	Principal Amount		Cost		Market Value

Rule 144A Securities - 12.44%:
Bonds - 12.44%
Alliance Residential Company	7.500	%	05/01/25	$	500,000	$	521,214	$	518,750
Altice Financing S.A.	7.500		05/15/26		400,000		400,000		440,000
Amsted Industries	5.375		09/15/24		240,000		240,000		252,300
Avantor Inc.	6.000		10/01/24		406,000		406,000		416,150
Boise Cascade Company	5.625		09/01/24		130,000		130,000		136,663
CITGO Petroleum Corporation	6.250		08/15/22		425,000		425,000		437,750
Constellium N.V.	7.875		04/01/21		373,000		373,000		395,379
CVR Partners, LP.	9.250		06/15/23		500,000		489,251		532,500
Dell Inc.	4.420		06/15/21		600,000		622,577		629,948
Digicel Group Limited	6.000		04/15/21		500,000		465,341		488,070
Endo Finance LLC	5.375		01/31/23		500,000		431,235		407,500
EnPro Industries Inc.	5.875		09/15/22		120,000		121,100		125,250
First Data Corporation	5.000		01/15/24		406,000		406,000		421,550
First Quantum Minerals Ltd.	7.500		04/01/25		500,000		485,388		511,250
Hertz Corporation	7.625		06/01/22		500,000		500,000		515,625
Hilcorp Energy Company	5.000		12/01/24		335,000		335,000		328,300
IAMGOLD Corporation	7.000		04/15/25		500,000		500,000		528,125
J.B. Poindexter Co., Inc.	9.000		04/01/22		500,000		500,000		522,500
Jupiter Resources Inc.	8.500		10/01/22		500,000		471,696		358,750
LBC Tank Terminals Holding Netherlands B.V.	6.875		05/15/23		663,000		677,104		696,149
Mallinckrodt PLC	5.750		08/01/22		500,000		500,000		488,750
MEG Energy Corporation	6.375		01/30/23		500,000		500,000		436,250
Micron Technology, Inc.	5.250		08/01/23		331,000		331,000		345,233
Moog Inc.	5.250		12/01/22		500,000		502,914		521,250
New Gold Inc.	6.250		11/15/22		500,000		502,296		519,375
OPE KAG Finance Sub	7.875		07/31/23		500,000		519,003		513,750
Penske Corporation	4.875		07/11/22		500,000		498,756		544,484
Prime Security Services Borrower	9.250		05/15/23		500,000		500,000		551,780
Sabre GLBL, Inc.	5.250		11/15/23		122,000		122,000		125,355
Sinclair Broadcast Group, Inc.	5.875		03/15/26		204,000		204,000		208,080
Sinclair Television Group, Inc.	5.125		02/15/27		500,000		500,000		485,625
Suncoke Energy	7.500		06/15/25		500,000		492,509		516,250
Tallgrass Operations LLC	5.500		09/15/24		304,000		304,000		312,360
Teine Energy Ltd.	6.875		09/30/22		500,000		506,250		508,750
Topaz Marine S.A.	9.125		07/26/22		500,000		500,000		500,375
Unitymedia KabelBW GmbH	6.125		01/15/25		500,000		500,000		533,125
Univision Communications, Inc.	5.125		05/15/23		160,000		160,000		163,200
UPCB Finance IV Limited	5.375		01/15/25		208,000		208,000		216,320

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Restricted Securities: (A) (Continued)	Interest Rate		Maturity Date	Principal Amount		Cost		Market Value
Valeant Pharmaceuticals International	7.000	%	10/01/20	$	250,000	$	250,355	$	251,563
Valeant Pharmaceuticals International	7.000		03/15/24		173,000		173,000		184,693
Virgin Media Secured Finance PLC	5.250		01/15/26		500,000		502,428		520,625
VRX Escrow Corp.	6.125		04/15/25		182,000		182,000		159,478
Welltec A/S	8.000		02/01/19		375,000		373,071		375,000
West Corporation	5.375		07/15/22		500,000		493,457		505,000
Wolverine World Wide, Inc.	5.000		09/01/26		335,000		335,000		335,101

Total Bonds							18,159,945		18,484,281

Common Stock - 0.00%
TherOX, Inc. (B)					2		—		—
Touchstone Health Partnership (B)					292		—		—

Total Common Stock							—		—


Total Rule 144A Securities							18,159,945		18,484,281

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Public Securities - 21.60%: (A)	Interest Rate		Maturity Date	Principal Amount		Cost		Market Value

Bank Loans - 1.33%
Aquilex Holdings LLC	5.000	%	12/31/20	$	157,127	$	156,943	$	155,555
Beacon Roofing Supply Inc.	0.000		08/24/18		500,000		—		—
Big River Steel LLC.	6.333		08/11/23		119,367		118,190		120,561
Cunningham Lindsey U.S., Inc.	5.083		12/10/19		124,966		118,558		121,842
Focus Financial Partners, LLC.	8.799		05/09/25		400,000		409,000		405,000
Gulf Finance, LLC	6.300		08/25/23		261,025		258,853		245,202
Murry Energy Corporation	7.250		04/16/20		456,334		415,585		417,359
Seadrill Partners Finco, LLC	4.000		02/21/21		491,071		282,541		357,868
Summit Midstream Holdings, LLC	7.020		03/06/22		146,966		145,642		148,803

Total Bank Loans							1,905,312		1,972,190


Bonds - 20.27%
ADT Security Services Corporation	4.125		06/15/23		500,000		446,055		508,750
Air Lease Corp.	3.000		09/15/23		600,000		594,225		598,546
Alcoa, Inc.	6.150		08/15/20		600,000		612,588		655,346
AMC Entertainment Holdings Inc.	6.125		05/15/27		500,000		486,357		493,750
Anglogold Holdings PLC	5.375		04/15/20		600,000		602,053		630,540
Anixter, Inc.	5.125		10/01/21		165,000		165,000		177,375
Antero Resources Corporation	5.375		11/01/21		395,000		395,000		405,369
A. Schulman Inc.	6.875		06/01/23		500,000		505,489		518,750
Bank of America Corporation	4.000		04/01/24		500,000		498,698		528,227
Beazer Homes USA, Inc.	8.750		03/15/22		160,000		160,000		176,860
Brunswick Corporation	7.125		08/01/27		500,000		503,804		582,371
Bunge Limited Finance Corp.	3.250		08/15/26		600,000		601,991		578,156
Community Health Sysyems Inc.	5.125		08/01/21		480,000		472,989		474,000
Clearwater Paper Corporation	4.500		02/01/23		500,000		497,004		498,750
Commercial Metals Company	4.875		05/15/23		750,000		750,980		783,750
Crown Castle International Corp	5.250		01/15/23		600,000		663,654		664,202
CubeSmart, L.P.	4.000		11/15/25		500,000		506,387		515,419
CVR Refining LLC	6.500		11/01/22		350,000		342,242		357,000
Discovery Communications	4.900		03/11/26		600,000		649,878		640,558
Duke Realty Limited Partnership	3.875		10/15/22		500,000		499,734		524,156
EP Energy Corporation	9.375		05/01/20		406,000		227,187		337,995
Expedia Inc.	4.500		08/15/24		600,000		625,081		632,982
Ferrellgas Partners, L.P.	6.750		01/15/22		265,000		267,605		257,050
Ferrellgas Partners, L.P.	8.625		06/15/20		650,000		650,431		617,500
Ford Motor Credit Co. LLC	4.375		08/06/23		600,000		642,972		633,203
General Motors Financial Co. Inc.	4.000		01/15/25		500,000		507,943		509,933
Genesis Energy, L.P.	5.625		06/15/24		500,000		469,053		485,000

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Corporate Public Securities - 21.60%: (A)	Interest Rate		Maturity Date	Principal Amount		Cost		Market Value
GEO Group, Inc. (The)	5.875	%	01/15/22	$	500,000	$	478,252	$	518,125
HealthSouth Corporation	5.125		03/15/23		421,000		413,504		435,081
Hertz Corporation	6.750		04/15/19		79,000		78,680		78,803
Hospital Corporation of America	5.375		02/01/25		100,000		101,452		105,375
Hospital Corporation of America	5.250		06/15/26		174,000		174,000		187,485
Hewlett Packard Enterprise Company	4.900		10/15/25		500,000		498,667		528,934
Hughes Satellite Systems Corporation	6.625		08/01/26		500,000		496,766		535,000
Icahn Enterprises L.P.	6.000		08/01/20		600,000		605,698		619,170
Jabil Circuit, Inc.	4.700		09/15/22		500,000		499,993		531,875
Laboratory Corporation of America Holdings	3.600		02/01/25		500,000		499,394		509,923
Lamar Media Corp.	5.375		01/15/24		160,000		160,000		168,400
Laredo Petroleum, Inc.	5.625		01/15/22		500,000		476,802		503,750
Lazard Group LLC	4.250		11/14/20		500,000		499,205		528,223
LyondellBasell Industries N.V.	5.750		04/15/24		500,000		585,099		573,056
MasTec, Inc.	4.875		03/15/23		500,000		493,413		511,250
Meritor, Inc.	6.750		06/15/21		636,000		636,000		658,260
Micron Technology, Inc.	7.500		09/15/23		203,000		203,000		225,584
MPLX LP	4.875		12/01/24		500,000		500,000		538,782
NRG Energy, Inc.	7.250		05/15/26		500,000		502,993		536,250
Oasis Petroleum Inc.	6.875		03/15/22		500,000		476,158		508,750
Owens Corning	4.200		12/01/24		600,000		633,747		631,954
Park-Ohio Industries Inc.	6.625		04/15/27		169,000		169,000		182,098
PBF Holding Company LLC	6.997		11/15/23		33,000		33,000		33,949
Perry Ellis International, Inc.	7.875		04/01/19		125,000		124,635		125,000
Pitney Bowes Inc.	3.375		10/01/21		500,000		499,675		492,092
Precision Drilling Corporation	6.625		11/15/20		149,477		151,498		150,038
Reinsurance Group of America	3.950		09/15/26		500,000		502,949		506,360
SM Energy Company	6.750		09/15/26		750,000		743,995		750,000
Sprint Corporation	7.125		06/15/24		155,000		155,000		174,375
Steelcase, Inc.	6.375		02/15/21		500,000		503,519		552,178
Suburban Propane Partners, L.P.	5.750		03/01/25		500,000		500,000		495,000
Time Warner Cable, Inc.	5.000		02/01/20		500,000		497,116		528,620
Trinity Acquisition Plc	4.400		03/15/26		500,000		515,595		530,114
Tyson Foods, Inc.	4.500		06/15/22		500,000		508,788		540,758
Western Digital Corporation	10.500		04/01/24		253,000		253,000		297,275
William Lyon Homes	7.000		08/15/22		500,000		500,000		517,500
WPX Energy, Inc.	5.250		09/15/24		425,000		425,000		426,063
Xlit Ltd	4.450		03/31/25		600,000		613,027		614,400

Total Bonds							29,053,020		30,135,388


Total Corporate Public Securities						$	30,958,332	$	32,107,578

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)


Short-Term Security:	Interest Rate/Yield^		Maturity Date	Principal Amount		Cost		Market Value

Commercial Paper - 3.88%
Dollar General Corporation	1.450	%	10/04/17	$	1,000,000	$	999,879	$	999,879
Fortive Corporation	1.380		10/03/17		1,000,000		999,923		999,923
Hyundai Capital America	1.310		10/06/17		1,000,000		999,818		999,818
Hyundai Capital America	1.380		10/24/17		775,000		774,317		774,317
Potash Corporation	1.430		10/12/17		1,000,000		999,569		999,569
Walgreens Boots Alliance	1.400		10/19/17		1,000,000		999,300		999,300

Total Short-Term Security						$	5,772,806	$	5,772,806


Total Investments	104.65	%				$	150,249,799	$	155,546,953


Other Assets	6.83								10,163,081

Liabilities	(11.48	)							(17,069,302	)

Total Net Assets	100.00	%						$	148,640,732

(A)	In each of the convertible note, warrant, and common stock investments, the issuer has agreed to provide certain registration rights.

(B)	Non-income producing security.

(C)	Security valued at fair value using methods determined in good faith by or under the direction of the Board of Trustees.

(D)	Defaulted security; interest not accrued.

(E)	Illiquid security. As of September 30, 2017 the values of these securities amounted to $99,182,288 or 66.73% of net assets.

(F)	Held in CI Subsidiary Trust

PIK—Payment-in-kind

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)

Industry Classification:	Fair Value/ Market Value
AEROSPACE & DEFENSE - 3.92%
API Technologies Corp.	$	1,841,280
BEI Precision Systems & Space Company, Inc.		1,661,261
FMH Holdings Corporation		333,750
Merex Holding Corporation		764,265
Sunvair Aerospace Group Inc.		1,225,611
		5,826,167

AUTOMOTIVE - 10.36%
Aurora Parts & Accessories LLC		1,640,024
CG Holdings Manufacturing Company		2,242,762
DPL Holding Corporation		1,599,734
English Color & Supply LLC		1,769,367
Ford Motor Credit Co. LLC		633,203
General Motors Financial Co. Inc.		509,933
Grakon Parent		203,550
Hyundai Capital America		1,774,135
J.B. Poindexter Co., Inc.		522,500
Meritor, Inc.		658,260
Moog Inc.		521,250
Power Stop Holdings LLC		1,876,202
Randy's Worldwide Automotive		1,450,629
		15,401,549

BANKING - 0.36%
Bank of America Corporation		528,227


BROKERAGE, ASSET MANAGERS & EXCHANGES - 0.77%
Icahn Enterprises L.P.		619,170
Lazard Group LLC		528,223
		1,147,393

BUILDING MATERIALS - 8.80%
ARI Holding Corporation		2,301,004
Beacon Roofing Supply Inc.		—
Boise Cascade Company		136,663
Janus Group Holdings LLC		1,652,071
Happy Floors Acquisition, Inc.		1,793,189
NSi Industries Holdings, Inc.		1,806,202
Owens Corning		631,954
Signature Systems Holding Company		95,273
Sunrise Windows Holding Company		999,929
Torrent Group Holdings, Inc.		90,272
Wellborn Forest Holding Company		1,778,423

	Fair Value/ Market Value
Wolf-Gordon, Inc.	$	1,809,298
		13,094,278

CABLE & SATELLITE - 1.57%
Hughes Satellite Systems Corporation		535,000
Time Warner Cable, Inc.		528,620
Unitymedia KabelBW GmbH		533,125
UPCB Finance IV Limited		216,320
Virgin Media Secured Finance PLC		520,625
		2,333,690

CHEMICALS - 3.06%
A. Schulman Inc.		518,750
Compass Chemical International LLC		192,425
CVR Partners, LP.		532,500
LBC Tank Terminals Holding Netherlands B.V.		696,149
LyondellBasell Industries N.V.		573,056
Polytex Holdings LLC		1,030,382
Potash Corporation		999,569
		4,542,831

CONSUMER CYCLICAL SERVICES - 3.26%
ADT Security Services Corporation		508,750
CHG Alternative Education Holding Company		1,065,008
Church Services Holding Company		—
GEO Group, Inc. (The)		518,125
PPC Event Services		1,695,551
Prime Security Services Borrower		551,780
West Corporation		505,000
		4,844,214

CONSUMER PRODUCTS - 10.33%
AMS Holding LLC		284,979
Blue Wave Products, Inc.		938,727
Elite Sportwear Holding, LLC		1,731,588
gloProfessional Holdings, Inc.		1,185,153
GTI Holding Company		799,235
Handi Quilter Holding Company		2,218,925
HHI Group, LLC		1,696,989
Kyjen Company		1,345,727
Manhattan Beachwear Holding Company		680,153
MasTec, Inc.		511,250

See Notes to Consolidated Financial Statements

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)

Industry Classification: (Continued)	Fair Value/ Market Value
Master Cutlery LLC	$	749,922
Perry Ellis International, Inc.		125,000
Whitebridge Pet Brands Holdings, LLC		1,659,071
York Wall Holding Company		1,422,842
		15,349,561

DIVERSIFIED MANUFACTURING - 4.31%
ABC Industries, Inc.		402,789
Advanced Manufacturing Enterprises LLC		—
Airxcel Holdings		617,324
Amsted Industries		252,300
BP SCI LLC		556,646
EnPro Industries Inc.		125,250
F G I Equity LLC		548,226
Fortive Corporation		999,923
K P I Holdings, Inc.		464,247
Motion Controls Holdings		327,606
NetShape Technologies, Inc.		—
SR Smith LLC		1,810,363
Strahman Holdings Inc		295,979
		6,400,653

ELECTRIC - 1.58%
AM Conservation Holding Corp.		1,814,112
NRG Energy, Inc.		536,250
		2,350,362

FINANCE COMPANIES - 0.40%
Air Lease Corp.		598,546


FINANCIAL OTHER - 0.44%
Cunningham Lindsey U.S., Inc.		121,842
Focus Financial Partners, LLC.		405,000
Insurance Claims Management, Inc.		132,434
		659,276

FOOD & BEVERAGE - 9.09%
1492 Acquisition LLC		388,534
Bunge Limited Finance Corp.		578,156
Del Real LLC		1,758,485
Eagle Family Foods, Inc.		1,885,173
F F C Holding Corporation		525,247
Hollandia Produce LLC		1,250,041
Hospitality Mints Holding Company		988,953

	Fair Value/ Market Value
Impact Confections	$	886,450
JMH Investors LLC		304,145
PANOS Brands LLC		2,297,328
Tyson Foods, Inc.		540,758
Westminster Acquisition LLC		1,015,878
WP Supply Holding Corporation		1,091,108
		13,510,256

GAMING - 1.27%
CTM Holding, Inc.		1,884,523


HEALTHCARE - 3.49%
Avantor Inc.		416,150
CORA Health Services, Inc.		900,593
Community Health Sysyems Inc.		474,000
ECG Consulting Group		1,474,532
GD Dental Services LLC		94,899
HealthSouth Corporation		435,081
Hospital Corporation of America		292,860
Laboratory Corporation of America Holdings		509,923
TherOX, Inc.		—
Touchstone Health Partnership		—
Valeant Pharmaceuticals International		436,256
VRX Escrow Corp.		159,478
		5,193,772

HEALTH INSURANCE - 0.34%
Reinsurance Group of America		506,360


HOME CONSTRUCTION - 0.47%
Beazer Homes USA, Inc.		176,860
William Lyon Homes		517,500
		694,360

INDEPENDENT - 2.32%
Antero Resources Corporation		405,369
EP Energy Corporation		337,995
Jupiter Resources Inc.		358,750
Laredo Petroleum, Inc.		503,750
MEG Energy Corporation		436,250
Oasis Petroleum Inc.		508,750
Precision Drilling Corporation		150,038
SM Energy Company		750,000
		3,450,902

See Notes to Consolidated Financial Statements

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)

Industry Classification: (Continued)	Fair Value/ Market Value
INDUSTRIAL OTHER - 7.73%
AFC - Dell Holding Corporation	$	1,355,208
Aquilex Holdings LLC		155,555
Brunswick Corporation		582,371
Clough, Harbour and Associates		858,132
Connecticut Electric, Inc.		1,613,282
Hartland Controls Holding Corporation		1,913,984
MC Sign Holdings LLC		1,150,095
Midwest Industrial Rubber, Inc.		1,745,116
Park-Ohio Industries Inc.		182,098
Smart Source Holdings LLC		565,351
SMB Machinery Holdings, Inc.		—
Steelcase, Inc.		552,178
Tranzonic Holdings LLC		814,950
		11,488,320

MEDIA & ENTERTAINMENT - 2.67%
AMC Entertainment Holdings Inc.		493,750.00
BlueSpire Holding, Inc.		—
Discovery Communications		640,558
GlynnDevins Acquisition Corporation		127,593
HOP Entertainment LLC		—
Lamar Media Corp.		168,400
Money Mailer Equity LLC		1,684,997
Sinclair Broadcast Group, Inc.		208,080
Sinclair Television Group, Inc.		485,625
Univision Communications, Inc.		163,200
		3,972,203

METALS & MINING - 3.77%
Alcoa, Inc.		655,346
Alliance Residential Company		518,750
Anglogold Holdings PLC		630,540
Big River Steel LLC.		120,561
Commercial Metals Company		783,750
Constellium N.V.		395,379
First Quantum Minerals Ltd.		511,250
IAMGOLD Corporation		528,125
Murry Energy Corporation		417,359
New Gold Inc.		519,375
Suncoke Energy		516,250
		5,596,685

	Fair Value/ Market Value
MIDSTREAM - 1.80%
CVR Refining LLC	$	357,000
Ferrellgas Partners, L.P.		874,550
Genesis Energy, L.P.		485,000
Suburban Propane Partners, L.P.		495,000
Summit Midstream Holdings, LLC		148,803
Tallgrass Operations LLC		312,360
		2,672,713

OIL FIELD SERVICES - 1.85%
Avantech Testing Services LLC		—
Gulf Finance, LLC		245,202
Hilcorp Energy Company		328,300
Petroplex Inv Holdings LLC		9,206
Seadrill Partners Finco, LLC		357,868
Teine Energy Ltd.		508,750
Topaz Marine S.A.		500,375
Welltec A/S		375,000
WPX Energy, Inc.		426,063
		2,750,764

OTHER - REITS - 0.70%
Duke Realty Limited Partnership		524,156
CubeSmart, L.P.		515,419
		1,039,575

PACKAGING - 0.52%
ASC Holdings, Inc.		769,801


PAPER - 1.47%
Clearwater Paper Corporation		498,750
Dunn Paper		1,690,500
		2,189,250

PHARMACEUTICALS - 2.96%
Clarion Brands Holding Corp.		2,180,687
Endo Finance LLC		407,500
ERG Holding Company LLC		1,317,325
Mallinckrodt PLC		488,750
		4,394,262

PROPERTY & CASUALTY - 0.77%
Trinity Acquisition Plc		530,114
Xlit Ltd		614,400
		1,144,514

See Notes to Consolidated Financial Statements

Barings Participation Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

September 30, 2017

(Unaudited)

Industry Classification: (Continued)	Fair Value/ Market Value
REFINING - 2.19%
CITGO Petroleum Corporation	$	437,750
MES Partners, Inc.		1,189,866
MPLX LP		538,782
PBF Holding Company LLC		33,949
Tristar Global Energy Solutions, Inc.		1,049,735
		3,250,082

RETAILERS - 1.57%
Dollar General Corporation		999,879
Walgreens Boots Alliance		999,300
Wolverine World Wide, Inc.		335,101
		2,334,280

TECHNOLOGY - 6.75%
Anixter, Inc.		177,375
Dell Inc.		629,948
Expedia Inc.		632,982
First Data Corporation		421,550
Glynlyon Holding Companies, Inc.		1,897,118
Hewlett Packard Enterprise Company		528,934
Jabil Circuit, Inc.		531,875
Micron Technology, Inc.		570,817
Pitney Bowes Inc.		492,092
Sabre GLBL, Inc.		125,355
Software Paradigms International Group, LLC		1,742,250
Veritext Corporation		1,982,375
Western Digital Corporation		297,275
		10,029,946

TELECOMMUNICATIONS - 0.29%
Altice Financing S.A.		440,000


TRANSPORTATION SERVICES - 2.58%
Hertz Corporation		594,428
MNX Holding Company		1,377,613
OPE KAG Finance Sub		513,750
Penske Corporation		544,484
Team Drive-Away Holdings LLC		138,048
VP Holding Company		662,668
		3,830,991

	Fair Value/ Market Value
WIRELESS - 0.89%
Crown Castle International Corp	$	664,202
Digicel Group Limited		488,070
Sprint Corporation		174,375
		1,326,647

Total Investments - 104.65% (Cost - $150,249,799)	$	155,546,953

See Notes to Consolidated Financial Statements

Fair Value Hierarchy

The Trust categorizes its investments measured at fair value in three levels, based on the inputs and assumptions used to determine fair value. These levels are as follows:

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments)

The following table summarizes the levels in the fair value hierarchy into which the Trusts' financial instruments are categorized as of September 30, 2017.

The fair values of our investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation as of September 30, 2017 are as follows:


Assets:	Total		Level 1		Level 2		Level 3
Restricted Securities
Corporate Bonds	$	88,718,864	$	—	$	18,484,281	$	70,234,583
Bank Loans		5,558,048		—		—		5,558,048
Common Stock - U.S.		7,005,529		—		—		7,005,529
Preferred Stock		2,454,870		—		—		2,454,870
Partnerships and LLCs		13,929,258		—		—		13,929,258
Public Securities
Bank Loans		1,972,190		—		1,020,428		951,762
Corporate Bonds		30,135,388		—		30,135,388		—
Short-term Securities		5,772,806		—		5,772,806		—
Total	$	155,546,953	$	—	$	55,412,903	$	100,134,050

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:


Assets:	Beginning Balance at 12/31/2016		Included in earnings			Purchases		Sales			Prepayments			Transfers into Level 3		Transfers out of Level 3		Ending balance at 9/30/2017
Restricted Securities
Corporate Bonds	$	69,600,395	$	2,201,330		$	6,211,888	$	(2,774,290	)	$	(5,004,740	)	$	—	$	—	$	70,234,583
Bank Loans		5,132,890		(32,222	)		457,380		—			—			—		—		5,558,048
Common Stock - U.S.		5,972,591		2,820,040			104,545		(1,891,647	)		—			—		—		7,005,529
Preferred Stock		3,878,030		591,239			—		(2,014,399	)		—			—		—		2,454,870
Partnerships and LLCs		10,187,680		2,832,523			1,903,464		(994,409	)		—			—		—		13,929,258
Public Securities
Bank Loans		—		4,202			645,896		—			(132,923	)		434,587		—		951,762
	$	94,771,586	$	8,417,112		$	9,323,173	$	(7,674,745	)	$	(5,137,663	)	$	434,587	$	—	$	100,134,050

ITEM 2. CONTROLS AND PROCEDURES.

(a) The principal executive officer and principal financial officer of the Registrant evaluated the effectiveness of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act") as of a date within 90 days of the filing date of this report and based on that evaluation have concluded that such disclosure controls and procedures are effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There have been changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act)("internal controls") that occurred during the Registrant's last fiscal quarter. The Registrant's investment adviser, Barings LLC, who maintains the Registrant's internal controls, revised its internal controls to oversee State Street Bank & Trust who now provides certain administrative and accounting services to the Registrant.

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) are attached hereto as an exhibit.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Barings Participation Investors

By (Signature and Title)*

/s/ Robert M. Shettle

Robert M. Shettle, President

Date November 29, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title)*

/s/ Robert M. Shettle

Robert M. Shettle, President

Date November 29, 2017

By (Signature and Title)*

/s/ James M. Roy

James M. Roy, Vice President and

Chief Financial Officer

Date November 29, 2017

* PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.