EQUUS TOTAL RETURN, INC.

Equus Total Return, Inc. is a Delaware corporation formed on August 16, 1991, operating as a closed-end management investment company that has elected to be treated as a business development company (BDC) under the Investment Company Act of 1940. The company's investment strategy, approved by shareholders on August 11, 2006, aims for the highest total return, comprising capital appreciation and current income. Equus invests in debt and equity securities of companies with a total enterprise value between $5.0 million and $75.0 million, though it may engage with smaller or larger companies. The company primarily targets investments in companies pursuing growth through acquisition or organically, leveraged buyouts, management buyouts, recapitalizations of existing businesses, or special situations. Income-producing investments mainly consist of debt securities, including bonds, subordinated debt, debt convertible into common or preferred stock, or debt combined with warrants, as well as common and preferred stock. Debt and preferred equity financing may also generate long-term capital appreciation through the exercise and sale of warrants. Capital appreciation is sought by investing in equity and equity-oriented securities issued by privately-owned companies or smaller public companies through directly negotiated transactions.