INVESTMENTS (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Schedule of Investments [Line Items] |
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| Schedule of individual investments |
| | | | | | | | | | | | | | | As of December 31, 2024 | | As of December 31, 2023 | | | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | First lien secured loans | | $ | 538,078 | | $ | 502,693 | | $ | 581,518 | | $ | 553,085 | Second lien secured loans | | | 8,295 | | | 8,342 | | | 27,520 | | | 19,039 | Unsecured loans | | | 1,152 | | | 1,175 | | | 167 | | | 167 | Subordinated Note to STRS JV | | | 84,416 | | | 84,416 | | | 84,416 | | | 84,416 | Equity (excluding STRS JV) | | | 42,195 | | | 22,846 | | | 25,296 | | | 16,679 | Equity in STRS JV | | | 21,104 | | | 22,741 | | | 21,104 | | | 22,782 | Total | | $ | 695,240 | | $ | 642,213 | | $ | 740,021 | | $ | 696,168 |
The following table shows the portfolio composition by industry grouping at fair value: | | | | | | | | | | | |
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Industry ($ in thousands) | | As of December 31, 2024 | | As of December 31, 2023 | |
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Advertising | | $ | 17,451 | | 3.3 | % | $ | 420 | | 0.1 | % | Air Freight & Logistics | | | 28,518 | | 5.3 | | | 22,616 | | 3.8 | | Application Software | | | 26,924 | | 5.0 | | | 34,202 | | 5.8 | | Automotive Retail | | | — | | — | | | 12,407 | | 2.1 | | Broadcasting | | | 7,833 | | 1.5 | | | 7,243 | | 1.2 | | Broadline Retail | | | 5,336 | | 1.0 | | | 19,911 | | 3.4 | | Building Products | | | 13,206 | | 2.5 | | | 15,863 | | 2.7 | | Commodity Chemicals | | | 16,026 | | 3.0 | | | 30,712 | | 5.2 | | Construction & Engineering | | | 3,927 | | 0.7 | | | 541 | | 0.1 | | Construction Materials | | | 5,640 | | 1.1 | | | 6,901 | | 1.2 | | Data Processing & Outsourced Services | | | 28,572 | | 5.3 | | | 33,997 | | 5.8 | | Distributors | | | 10,690 | | 2.0 | | | 12,475 | | 2.1 | | Diversified Chemicals | | | 4,999 | | 0.9 | | | 10,259 | | 1.7 | | Diversified Financial Services | | | — | | — | | | 3,472 | | 0.6 | | Diversified Support Services | | | 9,563 | | 1.8 | | | 9,598 | | 1.6 | | Education Services | | | 21,314 | | 4.0 | | | 20,318 | | 3.5 | | Electric Utilities | | | 16,032 | | 3.0 | | | 15,954 | | 2.7 | | Environmental & Facilities Services | | | 1,400 | | 0.3 | | | 23,878 | | 4.1 | | Food Distributors | | | 350 | | 0.1 | | | — | | — | | Health Care Facilities | | | 8,660 | | 1.6 | | | 8,966 | | 1.5 | | Health Care Services | | | 19,589 | | 3.7 | | | 17,643 | | 3.0 | | Health Care Supplies | | | 19,535 | | 3.7 | | | 18,983 | | 3.2 | | Heavy Electrical Equipment | | | 10,138 | | 1.9 | | | 10,135 | | 1.7 | | Home Furnishings | | | 25,376 | | 4.7 | | | 27,508 | | 4.7 | | Household Appliances | | | 22,162 | | 4.1 | | | 22,727 | | 3.9 | | Household Products | | | 11,656 | | 2.2 | | | 10,873 | | 1.9 | | Industrial Machinery & Supplies & Components | | | 13,237 | | 2.5 | | | 6,417 | | 1.2 | | Integrated Telecommunication Services | | | 13,135 | | 2.5 | | | 13,191 | | 2.2 | | Interactive Media & Services | | | 15,970 | | 3.0 | | | 1,615 | | 0.3 | | Investment Banking & Brokerage | | | — | | — | | | 3,522 | | 0.6 | | IT Consulting & Other Services | | | 3,504 | | 0.6 | | | 6,549 | | 1.1 | | Leisure Facilities | | | 19,580 | | 3.7 | | | 22,619 | | 3.8 | | Leisure Products | | | 23,298 | | 4.4 | | | 18,488 | | 3.1 | | Life Sciences Tools & Services | | | 5,000 | | 0.9 | | | 4,901 | | 0.8 | | Office Services & Supplies | | | — | | — | | | 15,503 | | 2.6 | | Packaged Foods & Meats | | | 4,087 | | 0.7 | | | — | | — | | Paper & Plastic Packaging Products & Materials | | | — | | — | | | 179 | | — | | Paper Products | | | 9,453 | | 1.8 | | | — | | — | | Real Estate Services | | | 20,872 | | 3.9 | | | 22,758 | | 3.9 | | Research & Consulting Services | | | 5,295 | | 0.9 | | | 8,438 | | 1.4 | | Security & Alarm Services | | | 7,070 | | 1.3 | | | — | | — | | Specialized Consumer Services | | | 7,122 | | 1.3 | | | 17,951 | | 3.0 | | Specialized Finance(1) | | | — | | — | | | — | | — | |
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Industry ($ in thousands) | | As of December 31, 2024 | | As of December 31, 2023 | |
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Systems Software | | | 26,398 | | 4.9 | | | 11,523 | | 2.0 | | Technology Hardware, Storage & Peripherals | | | 18,072 | | 3.4 | | | 16,745 | | 2.8 | | Transaction & Payment Processing Services | | | 8,066 | | 1.5 | | | — | | — | | Wireless Telecommunication Services | | | — | | — | | | 20,969 | | 3.6 | | Total(1) | | $ | 535,056 | | 100.0 | % | $ | 588,970 | | 100.0 | % |
| (1) | Excludes investments in STRS JV. |
As of December 31, 2024, the portfolio companies underlying the investments are all located in the United States and its territories, except for Arcserve Cayman Opco LP, Arcserve Cayman GP LLC, Arcserve Cayman Topco LP and Alvaria Holdco (Cayman), which are domiciled in Cayman Islands, and Trimlite Buyer, LLC, which is domiciled in Canada. As of December 31, 2023, the portfolio companies underlying the investments are all located in the United States and its territories, except for Trimlite Buyer, LLC, which is domiciled in Canada. As of December 31, 2024 and December 31, 2023, the weighted average remaining term of the Company’s debt investments, excluding non-accrual investments, was approximately 3.0 years and 2.8 years, respectively.
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| Schedule of forward currency contracts |
| | | | | | | | | | | | | | | | Counterparty | | Currency to be sold | | | Currency to be purchased | | Settlement date | | Unrealized
appreciation | | Unrealized
depreciation | Morgan Stanley | | C$ | 958 | CAD | | $ | 691 USD | | 2/7/2024 | | $ | — | | $ | (33) | Morgan Stanley | | € | 1,181 | EUR | | $ | 1,249 USD | | 2/7/2024 | | | — | | | (56) | Morgan Stanley | | £ | 1,340 | GBP | | $ | 1,625 USD | | 2/7/2024 | | | — | | | (83) | Total | | | | | | | | | | | $ | — | | $ | (172) |
| | | | | | | | | | | | | | | | Counterparty | | Currency to be sold | | | Currency to be purchased | | Settlement date | | Unrealized
appreciation | | Unrealized
depreciation | Morgan Stanley | | C$ | 256 | CAD | | $ | 189 USD | | 1/27/2023 | | $ | — | | $ | (1) | Morgan Stanley | | € | 1,111 | EUR | | $ | 1,128 USD | | 1/27/2023 | | | — | | | (64) | Morgan Stanley | | £ | 229 | GBP | | $ | 266 USD | | 1/27/2023 | | | — | | | (10) | Total | | | | | | | | | | | $ | — | | $ | (75) |
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| Schedule of selected Balance Sheet Information |
| | | | | | | Selected Balance Sheet Information ($ in thousands) | | As of December 31, 2024 | | As of December 31, 2023 | Assets | | | | | | | Investments, at fair value (amortized cost of $296,752 and $312,807, respectively) | | $ | 294,957 | | $ | 312,217 | Cash and cash equivalents | | | 12,454 | | | 14,625 | Interest receivable | | | 1,427 | | | 2,540 | Amounts receivable on unsettled investment transactions | | | 143 | | | 2,687 | Unrealized appreciation on foreign currency forward contracts | | | 64 | | | — | Other assets | | | 32 | | | 91 | Total assets | | $ | 309,077 | | $ | 332,160 | Liabilities | | | | | | | Credit facility (net of unamortized debt issuance costs of $3,024 and $1,850, respectively) | | $ | 141,057 | | $ | 163,394 | Note payable to members | | | 128,459 | | | 128,459 | Interest payable on credit facility | | | 807 | | | 1,013 | Interest payable on notes to members | | | 3,589 | | | 3,799 | Unrealized depreciation on foreign currency forward contracts | | | — | | | 172 | Other liabilities | | | 558 | | | 657 | Total liabilities | | | 274,470 | | | 297,494 | Members’ equity | | | 34,607 | | | 34,666 | Total liabilities and members’ equity | | $ | 309,077 | | $ | 332,160 |
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| Schedule of selected Statement of Operations Information |
| | | | | | | | | | | | Year Ended December 31, | Selected Statement of Operations Information ($ in thousands) | | 2024 | | 2023 | | 2022 | Interest and fee income | | $ | 39,833 | | $ | 40,334 | | $ | 28,956 | Total investment income | | $ | 39,833 | | $ | 40,334 | | $ | 28,956 | Interest expense on credit facility | | | 14,433 | | | 14,558 | | | 7,470 | Interest expense on notes to members | | | 14,971 | | | 14,403 | | | 9,680 | Administrative fee | | | 651 | | | 652 | | | 629 | Other expenses | | | 816 | | | 636 | | | 564 | Total expenses | | $ | 30,871 | | $ | 30,249 | | $ | 18,343 | Net investment income | | | 8,962 | | | 10,085 | | | 10,613 | Net realized gains (losses) on investments and foreign currency transactions | | | 91 | | | 312 | | | 329 | Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | | | 1,329 | | | 1,229 | | | (875) | Net increase in members’ equity resulting from operations | | $ | 10,382 | | $ | 11,626 | | $ | 10,067 |
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| STRS JV |
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| Schedule of Investments [Line Items] |
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| Schedule of individual investments |
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| | | | Dividends, | | Beginning | | | | | | | | | | | Net Change in | | Ending Fair |
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| | | | interest and PIK | | Fair Value as of | | | | | | | | Net | | Unrealized | | Value as of |
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| | Type of | | included in | | December 31, | | Gross | | Gross | | Realized | | Appreciation | | December 31, |
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Affiliated Person(1) | | Asset | | income | | 2023 | | Additions(2) | | Reductions(3) | | Gain (Loss) | | (Depreciation) | | 2024 |
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Non-controlled affiliates | | | | | | | | | | | | | | | | | | | | | | | | Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC) | | First Lien Secured Delayed Draw Loan | | $ | 116 | | $ | — | | $ | 677 | | $ | — | | $ | — | | $ | 570 | | $ | 1,247 | Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC) | | Unsecured Loan | | | 54 | | | — | | | 569 | | | — | | | — | | | 12 | | | 581 | Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC) | | Unsecured Loan | | | 55 | | | — | | | 583 | | | — | | | — | | | 11 | | | 594 | Arcserve Cayman GP LLC (d/b/a Arcserve (USA), LLC) | | Common Units | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Arcserve Cayman Topco LP (d/b/a Arcserve (USA), LLC) | | Common Units | | | — | | | — | | | 19,568 | | | — | | | — | | | (10,437) | | | 9,131 | Camarillo Fitness Holdings, LLC (f/k/a Honors Holdings, LLC) | | First Lien Secured Term Loan | | | 36 | | | — | | | 10,270 | | | — | | | — | | | 222 | | | 10,492 | H.I.G. Camarillo, L.P. (f/k/a Honors Holdings, LLC) | | Limited Partner Interests | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Playmonster Group LLC | | Priority First Lien Secured Term Loan | | | 157 | | | 1,015 | | | 157 | | | — | | | — | | | — | | | 1,172 | Playmonster Group LLC | | First Lien Secured Term Loan | | | — | | | 1,363 | | | — | | | — | | | — | | | 272 | | | 1,635 | Playmonster Group Equity, Inc. (d/b/a PlayMonster) | | Preferred Stock | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Playmonster Group Equity, Inc. (d/b/a PlayMonster) | | Common Stock | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Chase Products Co. (f/k/a Starco) | | Second Lien Secured Term Loan | | | 380 | | | 2,793 | | | 380 | | | — | | | — | | | 169 | | | 3,342 | Pressurized Holdings, LLC (f/k/a Starco) | | Common Units | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Pressurized Holdings, LLC (f/k/a Starco) | | Preferred Units | | | — | | | 251 | | | — | | | — | | | — | | | 1,406 | | | 1,657 | Total Non-controlled affiliates | | | | $ | 798 | | $ | 5,422 | | $ | 32,204 | | $ | — | | $ | — | | $ | (7,775) | | $ | 29,851 |
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| | | | Dividends, | | Beginning | | | | | | | | | | | Net Change in | | Ending Fair |
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| | | | interest and PIK | | Fair Value as of | | | | | | | | Net | | Unrealized | | Value as of |
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| | Type of | | included in | | December 31, | | Gross | | Gross | | Realized | | Appreciation | | December 31, |
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Affiliated Person(1) | | Asset | | income | | 2023 | | Additions(2) | | Reductions(3) | | Gain (Loss) | | (Depreciation) | | 2024 |
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Controlled affiliates | | | | | | | | | | | | | | | | | | | | | | | | American Crafts, LC | | Super Senior Priority First Lien Secured Term Loan | | $ | 107 | | $ | — | | $ | 2,374 | | $ | — | | $ | — | | $ | (2,001) | | $ | 373 | American Crafts, LC | | Super Senior Priority First Lien Secured Term Loan | | | 96 | | | — | | | 1,230 | | | — | | | — | | | (1,230) | | | — | American Crafts, LC | | Super Priority First Lien Secured Term Loan | | | 187 | | | 1,878 | | | 191 | | | — | | | — | | | (2,069) | | | — | American Crafts, LC | | Priority First Lien Secured Term Loan | | | (10) | | | 3,226 | | | — | | | — | | | — | | | (3,226) | | | — | American Crafts, LC | | First Lien Secured Term Loan | | | — | | | 553 | | | — | | | — | | | — | | | (553) | | | — | American Crafts, LC | | First Lien Secured Delayed Draw Loan | | | — | | | 93 | | | — | | | — | | | — | | | (93) | | | — | American Crafts Holdings, LLC (d/b/a American Crafts, LC) | | Warrants | | | — | | | — | | | — | | | — | | | — | | | — | | | — | New American Crafts Holdings, LLC (d/b/a American Crafts, LC) | | Class A Units | | | — | | | — | | | — | | | — | | | — | | | — | | | — | WHF STRS Ohio Senior Loan Fund LLC* | | Subordinated Note | | | 9,838 | | | 84,416 | | | — | | | — | | | — | | | — | | | 84,416 | WHF STRS Ohio Senior Loan Fund LLC* | | Equity | | | 6,861 | | | 22,782 | | | — | | | — | | | — | | | (41) | | | 22,741 | Total Controlled affiliates | | | | $ | 17,079 | | $ | 112,948 | | $ | 3,795 | | $ | — | | $ | — | | $ | (9,213) | | $ | 107,530 |
* | The Company and STRS Ohio are the members of STRS JV, a joint venture formed as a Delaware limited liability company that is not consolidated by either member for financial reporting purposes. The members make investments in STRS JV in the form of limited liability company (“LLC”) equity interests and interest-bearing subordinated notes as STRS JV makes investments, and all portfolio and other material decisions regarding STRS JV must be submitted to STRS JV’s board of managers which is comprised of an equal number of members appointed by each of the Company and STRS Ohio. Because management of STRS JV is shared equally between the Company and STRS Ohio, the Company does not believe it controls STRS JV for purposes of the 1940 Act or otherwise. |
| (1) | Refer to the consolidated schedule of investments for the principal amount, industry classification and other security detail of each portfolio company. |
| (2) | Gross additions may include increases in the cost basis of investments resulting from new portfolio investments, PIK, an exchange of existing investments for new investments and the transfers of an existing portfolio company into this category from a different category. |
| (3) | Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, an exchange of existing investments for new investments and the transfers of an existing portfolio company from this category to a different category. |
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| | | | Dividends, interest | | Beginning | | | | | | | | | | | Net Change in | | Ending Fair |
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| | | | and PIK | | Fair Value as of | | | | | | | | Net | | Unrealized | | Value as of |
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| | Type of | | included in | | December 31, | | | | | | | | Realized | | Appreciation | | December 31, |
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Affiliated Person(1) | | Asset | | income | | 2022 | | Purchases | | Sales | | Gain (Loss) | | (Depreciation) | | 2023 |
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Non-controlled affiliates | | | | | | | | | | | | | | | | | | | | | | | | Arcole Holding Corporation | | Equity | | $ | 84 | | $ | 6,380 | | $ | — | | $ | (6,605) | | $ | (339) | | $ | 564 | | $ | — | Playmonster Group LLC | | Priority First Lien Secured Term Loan | | | 129 | | | 176 | | | 943 | | | — | | | — | | | (104) | | | 1,015 | Playmonster Group LLC | | First Lien Secured Term Loan | | | (85) | | | 2,977 | | | — | | | — | | | — | | | (1,614) | | | 1,363 | Playmonster Group Equity, Inc. (d/b/a PlayMonster) | | Preferred Stock | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Playmonster Group Equity, Inc. (d/b/a PlayMonster) | | Common Stock | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Chase Products Co. (f/k/a Starco) | | Second Lien Secured Term Loan | | | 270 | | | — | | | 2,961 | | | — | | | — | | | (168) | | | 2,793 | Pressurized Holdings, LLC (f/k/a Starco) | | Common Units | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Pressurized Holdings, LLC (f/k/a Starco) | | Preferred Units | | | — | | | — | | | 4,537 | | | — | | | — | | | (4,286) | | | 251 | Total Non-controlled affiliates | | | | $ | 398 | | $ | 9,533 | | $ | 8,441 | | $ | (6,605) | | $ | (339) | | $ | (5,608) | | $ | 5,422 |
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| | | | Dividends, interest | | Beginning | | | | | | | | | | | Net Change in | | Ending Fair |
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| | | | and PIK | | Fair Value as of | | | | | | | | Net | | Unrealized | | Value as of |
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| | Type of | | included in | | December 31, | | | | | | | | Realized | | Appreciation | | December 31, |
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Affiliated Person(1) | | Asset | | income | | 2022 | | Purchases | | Sales | | Gain (Loss) | | (Depreciation) | | 2023 |
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Controlled affiliates | | | | | | | | | | | | | | | | | | | | | | | | American Crafts, LC | | Super Priority First Lien Secured Term Loan | | $ | 109 | | $ | — | | $ | 1,903 | | $ | — | | $ | — | | $ | (25) | | $ | 1,878 | American Crafts, LC | | Priority First Lien Secured Term Loan | | | 575 | | | — | | | 5,105 | | | — | | | — | | | (1,879) | | | 3,226 | American Crafts, LC | | First Lien Secured Term Loan | | | 568 | | | — | | | 7,491 | | | — | | | — | | | (6,938) | | | 553 | American Crafts, LC | | First Lien Secured Delayed Draw Loan | | | 95 | | | — | | | 1,259 | | | — | | | — | | | (1,166) | | | 93 | American Crafts Holdings, LLC (d/b/a American Crafts, LC) | | Warrants | | | — | | | — | | | — | | | — | | | — | | | — | | | — | New American Crafts Holdings, LLC (d/b/a American Crafts, LC) | | Class A Units | | | — | | | — | | | — | | | — | | | — | | | — | | | — | WHF STRS Ohio Senior Loan Fund LLC* | | Subordinated Note | | | 9,488 | | | 80,000 | | | 4,416 | | | — | | | — | | | — | | | 84,416 | WHF STRS Ohio Senior Loan Fund LLC* | | Equity | | | 6,158 | | | 20,160 | | | 1,104 | | | — | | | — | | | 1,518 | | | 22,782 | Total Controlled affiliates | | | | $ | 16,993 | | $ | 100,160 | | $ | 21,278 | | $ | — | | $ | — | | $ | (8,490) | | $ | 112,948 |
* | The Company and STRS Ohio are the members of STRS JV, a joint venture formed as a Delaware limited liability company that is not consolidated by either member for financial reporting purposes. The members make investments in STRS JV in the form of limited liability company (“LLC”) equity interests and interest-bearing subordinated notes as STRS JV makes investments, and all portfolio and other material decisions regarding STRS JV must be submitted to STRS JV’s board of managers which is comprised of an equal number of members appointed by each of the Company and STRS Ohio. Because management of STRS JV is shared equally between the Company and STRS Ohio, the Company does not believe it controls STRS JV for purposes of the 1940 Act or otherwise. |
| (1) | Refer to the consolidated schedule of investments for the principal amount, industry classification and other security detail of each portfolio company. |
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