PORTFOLIO INVESTMENTS AND FAIR VALUE (Tables)
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6 Months Ended |
Jun. 30, 2025 |
PORTFOLIO INVESTMENTS AND FAIR VALUE |
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Schedule of total fair value and cost of investments |
At June 30, 2025, the Company had investments in 67 portfolio companies. The composition of our investments as of June 30, 2025 is as follows: | | | | | | | | | Cost | | Fair Value | Senior Secured – First Lien(1) | | $ | 320,027,550 | | $ | 319,911,373 | Unsecured Debt | | | 65,868 | | | 70,127 | Equity | | | 15,082,120 | | | 20,375,903 | Total Investments | | $ | 335,175,538 | | $ | 340,357,403 |
(1) | Includes unitranche investments, which accounted for 3.7% of the Company’s portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. The Company’s unitranche loans will expose it to certain risk associated with second lien and subordinated loans to the extent it invests in the “last-out” tranche. |
At December 31, 2024, the Company had investments in 59 portfolio companies. The composition of our investments as of December 31, 2024 was as follows: | | | | | | | | | Cost | | Fair Value | Senior Secured – First Lien(1) | | $ | 284,068,534 | | $ | 283,482,729 | Unsecured Debt | | | 96,106 | | | 90,413 | Equity | | | 13,626,629 | | | 17,158,923 | Total Investments | | $ | 297,791,269 | | $ | 300,732,065 |
(1) | Includes unitranche investments, which accounted for 3.1% of the Company’s portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. The Company’s unitranche loans will expose it to certain risk associated with second lien and subordinated loans to the extent it invests in the “last-out” tranche. |
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Schedule of aggregate gross unrealized appreciation (depreciation) and aggregate cost and fair value of portfolio company securities |
| | | | | | | | | June 30, 2025 | | December 31, 2024 | Aggregate cost of portfolio company securities | | $ | 335,175,538 | | $ | 297,791,269 | Gross unrealized appreciation of portfolio company securities | | | 9,572,666 | | | 6,531,245 | Gross unrealized depreciation of portfolio company securities | | | (4,433,456) | | | (3,597,372) | Gross unrealized appreciation on foreign currency translation | | | 42,655 | | | 11,656 | Gross unrealized depreciation on foreign currency translation | | | — | | | (4,733) | Aggregate fair value of portfolio company securities | | $ | 340,357,403 | | $ | 300,732,065 |
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Schedule of fair values of investments disaggregated into three levels of fair value hierarchy |
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 June 30, 2025 are as follows: | | | | | | | | | | | | | | | Quoted Prices | | | | | | | | | in Active | | | | | | | | | Markets | | Significant Other | | Significant | | | | | for Identical | | Observable | | Unobservable | | | | | Securities | | Inputs | | Inputs | | | | | (Level 1) | | (Level 2) | | (Level 3) | | Total | Senior Secured – First Lien | | $ | — | | $ | — | | $ | 319,911,373 | | $ | 319,911,373 | Unsecured Debt | | | — | | | — | | | 70,127 | | | 70,127 | Equity | | | — | | | — | | | 20,375,903 | | | 20,375,903 | Total Investments | | $ | — | | $ | — | | $ | 340,357,403 | | $ | 340,357,403 |
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 December 31, 2024 are as follows: | | | | | | | | | | | | | | | Quoted Prices | | | | | | | | | in Active | | | | | | | | | Markets | | Significant Other | | Significant | | | | | for Identical | | Observable | | Unobservable | | | | | Securities | | Inputs | | Inputs | | | | | (Level 1) | | (Level 2) | | (Level 3) | | Total | Senior Secured – First Lien | | $ | — | | $ | — | | $ | 283,482,729 | | $ | 283,482,729 | Unsecured Debt | | | — | | | — | | | 90,413 | | | 90,413 | Equity | | | — | | | — | | | 17,158,923 | | | 17,158,923 | Total Investments | | $ | — | | $ | — | | $ | 300,732,065 | | $ | 300,732,065 |
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Schedule of aggregate values of Level 3 portfolio investments change |
The changes in aggregate values of Level 3 portfolio investments during the six months ended June 30, 2025 are as follows: | | | | | | | | | | | | | | | Senior Secured | | | | | | | | | Loans-First | | Unsecured | | | | Total | | | Lien | | Debt | | Equity | | Investments | Fair value at December 31, 2024 | | $ | 283,482,729 | | $ | 90,413 | | $ | 17,158,923 | | $ | 300,732,065 | Purchases of investments | | | 48,871,231 | | | 27,731 | | | 2,239,855 | | | 51,138,817 | Payment-in-kind interest | | | 193,152 | | | 4,580 | | | — | | | 197,732 | Sales and Redemptions | | | (13,578,734) | | | (62,551) | | | (851,858) | | | (14,493,143) | Change in unrealized appreciation on investments included in earnings | | | 469,627 | | | 303 | | | 1,735,407 | | | 2,205,337 | Change in unrealized appreciation on foreign currency translation included in earnings | | | — | | | 9,651 | | | 26,081 | | | 35,732 | Amortization of premium and accretion of discount, net | | | 473,368 | | | — | | | — | | | 473,368 | Fair value at June 30, 2025 | | $ | 319,911,373 | | $ | 70,127 | | $ | 20,375,903 | | $ | 340,357,403 |
The changes in aggregate values of Level 3 portfolio investments during the year ended December 31, 2024 are as follows: | | | | | | | | | | | | | | | Senior Secured | | | | | | | | | Loans-First | | Unsecured | | | | Total | | | Lien | | Debt | | Equity | | Investments | Fair value at December 31, 2023 | | $ | 197,292,058 | | $ | 17,730 | | $ | 11,264,290 | | $ | 208,574,078 | Purchases of investments | | | 115,327,846 | | | 77,120 | | | 4,400,217 | | | 119,805,183 | Payment-in-kind interest | | | 1,058,247 | | | 1,569 | | | — | | | 1,059,816 | Sales and Redemptions | | | (30,024,338) | | | — | | | (241,720) | | | (30,266,058) | Realized gain on investment | | | — | | | — | | | — | | | — | Change in unrealized depreciation on investments included in earnings | | | (849,653) | | | (787) | | | 1,756,674 | | | 906,234 | Change in unrealized depreciation on foreign currency translation included in earnings | | | — | | | (5,219) | | | (20,538) | | | (25,757) | Amortization of premium and accretion of discount, net | | | 678,569 | | | — | | | — | | | 678,569 | Fair value at December 31, 2024 | | $ | 283,482,729 | | $ | 90,413 | | $ | 17,158,923 | | $ | 300,732,065 |
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Summary of geographical concentration of investment portfolio |
The following is a summary of geographical concentration of our investment portfolio as of June 30, 2025: | | | | | | | | | | | | | | | | % of Total | | | | | | | | | | Investments at | | | | Cost | | Fair Value | | Fair Value | | Florida | | $ | 57,141,831 | | $ | 55,822,396 | | 16.39 | % | Texas | | | 40,063,794 | | | 42,333,289 | | 12.44 | % | New York | | | 33,627,440 | | | 35,002,708 | | 10.28 | % | California | | | 27,466,633 | | | 27,672,666 | | 8.13 | % | Illinois | | | 16,273,957 | | | 15,998,554 | | 4.70 | % | Colorado | | | 15,922,193 | | | 15,921,855 | | 4.68 | % | Pennsylvania | | | 14,008,644 | | | 15,359,350 | | 4.51 | % | Canada | | | 12,113,407 | | | 12,104,455 | | 3.56 | % | United Kingdom | | | 12,147,371 | | | 12,096,664 | | 3.55 | % | Tennessee | | | 9,998,053 | | | 9,732,842 | | 2.86 | % | Maryland | | | 9,570,342 | | | 9,388,830 | | 2.76 | % | Arizona | | | 8,829,055 | | | 9,277,908 | | 2.73 | % | Ohio | | | 9,708,272 | | | 10,405,798 | | 3.06 | % | Iowa | | | 8,445,800 | | | 8,458,067 | | 2.49 | % | Oregon | | | 7,305,193 | | | 7,482,538 | | 2.20 | % | Wisconsin | | | 6,415,314 | | | 6,794,892 | | 2.00 | % | Michigan | | | 6,070,297 | | | 6,141,324 | | 1.80 | % | Massachusetts | | | 7,725,858 | | | 7,618,918 | | 2.24 | % | Idaho | | | 4,863,880 | | | 4,887,604 | | 1.44 | % | Missouri | | | 4,804,928 | | | 4,933,789 | | 1.45 | % | Louisiana | | | 4,504,000 | | | 4,516,819 | | 1.33 | % | District of Columbia | | | 4,164,671 | | | 4,256,074 | | 1.25 | % | Virginia | | | 3,854,839 | | | 3,734,446 | | 1.10 | % | North Carolina | | | 5,727,133 | | | 5,759,213 | | 1.69 | % | South Carolina | | | 2,219,905 | | | 2,293,017 | | 0.67 | % | Georgia | | | 1,871,750 | | | 1,920,185 | | 0.56 | % | Indiana | | | 330,978 | | | 443,202 | | 0.13 | % | Total Investments | | $ | 335,175,538 | | $ | 340,357,403 | | 100.00 | % |
The following is a summary of geographical concentration of our investment portfolio as of December 31, 2024: | | | | | | | | | | | | | | | | % of Total | | | | | | | | | | Investments at | | | | Cost | | Fair Value | | Fair Value | | Florida | | $ | 57,653,478 | | $ | 55,449,024 | | 18.44 | % | Texas | | | 39,654,155 | | | 41,816,027 | | 13.90 | % | New York | | | 32,574,086 | | | 33,418,762 | | 11.11 | % | Illinois | | | 16,351,628 | | | 16,234,004 | | 5.40 | % | California | | | 14,388,867 | | | 14,576,642 | | 4.85 | % | Pennsylvania | | | 13,383,388 | | | 14,037,912 | | 4.67 | % | Canada | | | 12,303,300 | | | 12,339,763 | | 4.10 | % | United Kingdom | | | 12,153,794 | | | 12,093,869 | | 4.02 | % | Tennessee | | | 9,981,310 | | | 10,070,962 | | 3.35 | % | Colorado | | | 9,759,942 | | | 9,834,101 | | 3.27 | % | Arizona | | | 8,870,299 | | | 9,287,842 | | 3.09 | % | Maryland | | | 9,297,302 | | | 9,134,501 | | 3.04 | % | Ohio | | | 8,373,385 | | | 8,775,516 | | 2.92 | % | Wisconsin | | | 6,453,254 | | | 6,734,750 | | 2.24 | % | Iowa | | | 6,282,877 | | | 6,282,877 | | 2.09 | % | Massachusetts | | | 5,954,032 | | | 5,927,889 | | 1.97 | % | Michigan | | | 5,255,092 | | | 5,295,406 | | 1.76 | % | Idaho | | | 5,234,830 | | | 5,264,442 | | 1.75 | % | Louisiana | | | 4,520,330 | | | 4,590,651 | | 1.53 | % | District of Columbia | | | 4,177,673 | | | 4,177,673 | | 1.39 | % | Missouri | | | 4,058,101 | | | 4,101,329 | | 1.36 | % | Virginia | | | 3,718,318 | | | 3,738,884 | | 1.24 | % | North Carolina | | | 3,307,812 | | | 3,307,813 | | 1.10 | % | South Carolina | | | 2,219,069 | | | 2,292,030 | | 0.76 | % | Georgia | | | 1,533,969 | | | 1,539,843 | | 0.51 | % | Indiana | | | 330,978 | | | 409,553 | | 0.14 | % | Total Investments | | $ | 297,791,269 | | $ | 300,732,065 | | 100.00 | % |
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Summary of industry concentration of investment portfolio |
The following is a summary of industry concentration of our investment portfolio as of June 30, 2025: | | | | | | | | | | | | | | | | % of Total | | | | | | | | | | Investments at | | | | Cost | | Fair Value | | Fair Value | | Services: Business | | $ | 71,215,277 | | $ | 73,192,327 | | 21.51 | % | High Tech Industries | | | 38,485,784 | | | 39,257,580 | | 11.53 | % | Healthcare & Pharmaceuticals | | | 33,940,110 | | | 34,283,132 | | 10.07 | % | Capital Equipment | | | 32,192,046 | | | 33,038,075 | | 9.71 | % | Media: Advertising, Printing & Publishing | | | 25,545,625 | | | 24,928,468 | | 7.32 | % | Consumer Goods: Non-Durable | | | 18,504,782 | | | 19,892,643 | | 5.84 | % | Services: Consumer | | | 19,588,196 | | | 18,559,975 | | 5.45 | % | Beverage & Food | | | 16,342,295 | | | 16,464,253 | | 4.84 | % | Construction & Building | | | 14,603,059 | | | 15,003,370 | | 4.41 | % | Chemicals, Plastics, & Rubber | | | 14,267,157 | | | 14,135,812 | | 4.15 | % | Media: Diversified & Production | | | 12,147,371 | | | 12,096,664 | | 3.55 | % | Consumer Goods: Durable | | | 9,598,872 | | | 9,854,897 | | 2.90 | % | Environmental Industries | | | 8,558,713 | | | 9,040,553 | | 2.66 | % | Energy: Oil & Gas | | | 8,108,302 | | | 8,468,223 | | 2.49 | % | Retail | | | 6,184,658 | | | 6,194,858 | | 1.82 | % | Hotel, Gaming, & Leisure | | | 3,710,573 | | | 3,767,254 | | 1.11 | % | Wholesale | | | 2,182,718 | | | 2,179,319 | | 0.64 | % | Total Investments | | $ | 335,175,538 | | $ | 340,357,403 | | 100.00 | % |
The following is a summary of industry concentration of our investment portfolio as of December 31, 2024: | | | | | | | | | | | | | | | | % of Total | | | | | | | | | | Investments at | | | | Cost | | Fair Value | | Fair Value | | Services: Business | | $ | 50,117,721 | | $ | 51,333,196 | | 17.06 | % | High Tech Industries | | | 37,580,707 | | | 38,418,760 | | 12.78 | % | Healthcare & Pharmaceuticals | | | 33,078,396 | | | 33,123,393 | | 11.01 | % | Capital Equipment | | | 26,634,637 | | | 27,544,790 | | 9.16 | % | Consumer Goods: Non-Durable | | | 19,459,391 | | | 20,424,922 | | 6.79 | % | Media: Advertising, Printing & Publishing | | | 19,321,733 | | | 19,051,900 | | 6.34 | % | Services: Consumer | | | 19,416,695 | | | 17,380,571 | | 5.78 | % | Chemicals, Plastics, & Rubber | | | 17,043,322 | | | 17,041,973 | | 5.67 | % | Beverage & Food | | | 13,801,250 | | | 13,952,930 | | 4.64 | % | Construction & Building | | | 13,290,426 | | | 13,638,879 | | 4.54 | % | Media: Diversified & Production | | | 12,153,794 | | | 12,093,869 | | 4.02 | % | Environmental Industries | | | 9,482,195 | | | 9,782,473 | | 3.25 | % | Consumer Goods: Durable | | | 8,562,343 | | | 8,638,156 | | 2.87 | % | Energy: Oil & Gas | | | 7,800,160 | | | 8,232,957 | | 2.74 | % | Retail | | | 6,293,227 | | | 6,252,832 | | 2.08 | % | Hotel, Gaming, & Leisure | | | 3,755,272 | | | 3,820,464 | | 1.27 | % | Total Investments | | $ | 297,791,269 | | $ | 300,732,065 | | 100.00 | % |
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Schedule of quantitative information about Level 3 fair value measurements |
The following provides quantitative information about Level 3 fair value measurements as of June 30, 2025: | | | | | | | | | | Description: | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Range (Average)(1)(3) | First lien debt | | $ | 313,015,160 | | Income approach(2) | | HY credit spreads | | -2.51% to 8.31% (-0.23%) | | | | | | | | Risk free rates | | -1.00% to 1.94% (-0.32%) | | | | | | Market approach(2) | | Market multiples | | 3.4x to 21.1x (12.5x)(4) | | | $ | 6,896,213 | | Transaction value | | Transaction price | | N/A | | | | | | | | | | | Unsecured debt | | $ | 70,127 | | Income approach | | HY credit spreads | | -0.42% to -0.42% (-0.42%) | | | | | | | | Risk free rates | | -0.16% to -0.16% (-0.16%) | | | | | | | | | | | Equity investments | | $ | 19,500,056 | | Market approach(5) | | EBITDA multiple | | 3.3x to 18.2x (11.0x) | | | | | | | | Revenue multiple | | 7.8x to 7.8x (7.8x) | | | $ | 875,847 | | Transaction value | | Transaction price | | N/A | | | | | | | | | | | Total Long Term Level 3 Investments | | $ | 340,357,403 | | | | | | |
(1) | Weighted average based on fair value as of June 30, 2025. |
(2) | Income approach is based on discounting future cash flows using an appropriate market yield. |
(3) | The Company calculates the price of the loan by discounting future cash flows, which include forecasted future rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on: changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors could result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for first lien debt instruments in the table above indicates that the change in the HY spreads between the date a loan closed and the valuation date ranged from (2.51)% ( (251) basis points) to 8.31% (831 basis points). The average of all changes was (0.23)% ( (23) basis points). |
(4) | Median of LTM (last twelve months) EBITDA multiples of comparable companies. |
(5) | The primary significant unobservable input used in the fair value measurement of the Company’s equity investments is the EBITDA multiple (the “Multiple”). Significant increases (decreases) in the Multiple in isolation could result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiple, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach. |
The following provides quantitative information about Level 3 fair value measurements as of December 31, 2024: | | | | | | | | | | Description: | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Range (Average)(1)(3) | First lien debt | | $ | 247,874,246 | | Income approach(2) | | HY credit spreads | | -2.58% to 7.72% (-0.66%) | | | | | | | | Risk free rates | | -0.41% to 2.38% (0.36%) | | | | | | Market approach(2) | | Market multiples | | 4.6x to 23.4x (13.4x)(4) | | | $ | 35,608,483 | | Transaction value | | Transaction price | | N/A | | | | | | | | | | | Unsecured debt | | $ | 90,413 | | Transaction value | | Transaction price | | N/A | | | | | | | | | | | Equity investments | | $ | 14,923,447 | | Market approach(5) | | EBITDA multiple | | 5.2x to 18.3x (11.1x) | | | $ | 2,235,476 | | Transaction value | | Transaction price | | N/A | | | | | | | | | | | Total Long Term Level 3 Investments | | $ | 300,732,065 | | | | | | |
(1) | Weighted average based on fair value as of December 31, 2024. |
(2) | Income approach is based on discounting future cash flows using an appropriate market yield. |
(3) | The Company calculates the price of the loan by discounting future cash flows, which include forecasted future rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on: changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors could result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for first lien debt instruments in the table above indicates that the change in the HY spreads between the date a loan closed and the valuation date ranged from (2.58)% ( (258) basis points) to 7.72% (772 basis points). The average of all changes was (0.66)% ( (66) basis points). |
(4) | Median of LTM (last twelve months) EBITDA multiples of comparable companies. |
(5) | The primary significant unobservable input used in the fair value measurement of the Company’s equity investments is the EBITDA multiple (the “Multiple”). Significant increases (decreases) in the Multiple in isolation could result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiple, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach. |
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